How long could you survive on your savings if you lost your job tomorrow? A month? A week? Or… not at all? That’s exactly the situation I faced before discovering the true power of saving. Saving money isn’t just about accumulating wealth; it’s about building a safety net and securing your future. This article explores how adopting a saving mindset transformed my life and provides actionable strategies to help you achieve financial stability.
The Importance of Saving: Lessons from Personal Experience
Honestly, I used to struggle with saving money. From childhood to the early years of my career, saving always felt difficult, even as my income grew. It wasn’t until I hit financial rock bottom that I finally realized just how crucial savings are.
I used to think it was better to reinvest all my money into new businesses rather than keep it in savings. But in reality, this mindset isn’t entirely correct in the business world. If your business runs into trouble and you have no savings, you have no cushion to fall back on. Even worse, if multiple problems hit at once, you could be completely overwhelmed. Saving provides a buffer against unforeseen circumstances, both in business and personal life.
But today, we’re not here to talk about business — that’s a discussion for another time. Today, we’re going to talk about the importance of saving and how I managed my finances during the early stages of my career until I eventually reached a level of financial success most people only dream of. The foundation of that success was built upon the discipline of saving.
How to Manage Finances in the Early Career Stage
When I was just starting, I followed a simple principle to maintain work-life balance:
Live on only 75% of your monthly income.
This 75% covers everything — rent, food, entertainment, supporting your parents — basically, all expenses must fit within this budget.
Why limit expenses?
Because it trains you to live simply and be more mindful about spending. For example:
- Instead of dining at expensive restaurants, opt for affordable local spots.
- Instead of choosing premium fuel just to avoid long queues, go for a more economical option.
I’m not saying you should go to extremes with frugality, but try to evaluate whether your spending truly matches the value you get. For instance:
- If you buy coffee for $5 every day, that adds up to $1,825 a year — just for coffee!
- But if that coffee helps you stay productive and motivated at work, then go for it! The key is making sure your spending aligns with its true value.
The Importance of an Emergency Fund (10% of Income)
From the remaining 25% of my income, I allocated 10% for an emergency fund. In financial planning, this is called an emergency fund — money reserved strictly for urgent situations.
A real-life example: I once got into an accident while traveling for work. I had to pay for towing, taxis, compensation for the other driver, and my vehicle repairs. The total cost that day was nearly $700!
This is why an emergency fund is crucial. There’s no fixed amount, but what matters is that you always have some cash set aside for unexpected situations. Aim for at least 3-6 months of living expenses.
Saving for the Future (15% of Income)
The remaining 15% of my income went into savings for the future. This could be used for:
- Marriage
- Pursuing a master’s degree
- Learning new skills
- Starting a business
If you don’t have a big plan yet, that’s fine. This savings fund could also be used for vacations or expensive purchases. What’s important is developing the habit of saving.
Why?
- Saving builds discipline and patience.
- Saving helps prioritize expenses.
- Saving prevents debt accumulation.
For those with busy careers who don’t have time to learn about investments, saving is the safest option. Don’t jump into investing without knowledge — just keep your money in a bank until you’re ready to explore further.
Another benefit of saving is liquidity — you can withdraw your money anytime when needed. But most importantly, saving provides security and peace of mind. And from that, happiness follows.
Recommended Savings Option: Time Deposits
As an additional tip, you might consider saving through time deposits. Time deposits are great for those who want to save without needing investment skills. I recommend high-yield savings accounts or CDs (Certificates of Deposit).
Why?
- Access to deposit products from various banks with competitive interest rates.
- Maximum interest rates of up to 5.00%+ per year.
- FDIC-insured banks guarantee funds up to $250,000 per depositor per bank.
- Start with just $1000, with short tenures starting from 3 months.
If you want to start building better financial habits, just take that first step. It doesn’t have to be big — just consistent. Whether it’s setting aside a little each month or finding a smarter way to save, what matters is getting started. Trust me, your future self will thank you.
Conclusion
Saving isn’t just about storing money — it’s about shaping your future. With every cent you save, you’re creating opportunities, building resilience, and ensuring that when challenges come, you’re ready. It’s the foundation for financial freedom, giving you the power to say yes to the right opportunities and no to unnecessary stress. The sooner you start, the more control you’ll have over your future. Because in the end, financial security isn’t just about wealth — it’s about peace of mind.
Thank you for reading, and stay classy!
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