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The Truth About Personal Savings Everybody Should Know and Think About

Personal_Finance / Financial Education Jan 26, 2021 - 08:08 PM GMT

By: Sumeet_Manhas


Whether we like it or not, finances impact everything in our lives. It is, essentially, freedom. It is unfair how many of us struggle with personal savings, especially in wealthy countries, where, logically speaking, it shouldn’t be the case. Why does this happen? We will talk about how psychologically we are connected with money and the relationship we have with it and some everyday things that impact our financial status. Our financial health is essential, and we tend to neglect it, not because we are necessarily guilty of that, but also because the country we live in doesn’t paint the picture quite right. If a country is wealthy, why are many people who live from paycheck to paycheck? Why do poor people have to face much higher costs for everything, especially when faced with monthly bank fees? The truth is, personal savings are more about what the world dictates and if you are going to abide by it or not. It’s also what kind of relationship you built with money as a kid.

Social Media Pressure

Have you thought about how many things you purchased because you were scrolling through your social media and saw something virtually everyone has but isn’t necessary? Your savings are okay if this is a purchase that happens maybe twice a year, but if you catch yourself buying things to “be like the rest”, and feel like you are also a part of some “elite” membership, you should ask yourself why do you ask for constant approval. Why do you think that a specific thing will change your life because Xyz has it? We have to mention what everybody is aware of, and that is the fact that what you see online is not a mirror of someone’s happiness. Social media is tailored, so you share your happiest moments, even fake them so that you can be more appealing to your friends and audience. If you are not, you feel left out and like you failed miserably. Avoid doom scrolling, especially in the pandemic, because we are more likely than ever to reach instant gratification and satisfaction that can immensely affect our savings.

Our society is doing better than before

This is something you will often hear, no matter what situation we’re globally in. Excluding the pandemic times, the government will usually say how there are less unemployed people than ever, every year tweaking the number a bit. How true is that? If it is, are people able to save some money aside, or they continue to barely meet ends, bound to take loans, putting themselves in the whirlpool of debt. The truth is, the rich part of the country makes up for those numbers by developing businesses and seemingly making everything look “prettier” on the outside. Nobody ever mentioned how many people have to live paycheck to paycheck or choose to stay with their family instead of renting or buying an apartment because they cannot afford to.

What can you do about it?

Having a system working in your favour is hard, but it isn’t impossible. One way to do that is by organizing your savings, or instead revisiting them (doesn’t matter if you live paycheck to paycheck), and see what improvements you can make. How can you pay off your debt? Is there a way to save by opening a savings account with a different bank or start putting aside even a little bit? How you spend your money reflects your upbringing. Think about it and what you saw your parents do with it as a kid. If you are used to spending a lot of money, but now you don’t have much, pay attention to that aspect of yourself and see why you do it and how you can reprogram it to mindful spending. On the other hand, if you are stingy when it comes to necessities but you have more than enough, think why you feel like you should spend as little as possible even if you need a new computer asap because you are working from home, but you still won’t do it. These are things you should contemplate about, and that affects your overall personal savings.

By Sumeet Manhas

© 2020 Copyright Sumeet Manhas - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

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