Saving money is the most crucial financial habit everybody is thinking of adopting. Why is it so important? Saving money provides many benefits to the saver, but the essential proven use is financial security in the saver’s life. This crucial habit may help you in a different situation with different benefits like paying off debt, emergency requirements, buying a home, home repairs, car repairs, job loss, future education, investment opportunities, caring for elderly relatives, retirement, etc. The last benefit you will get is to reduce your financial stress, which leads to financial freedom in your life.

Save 15 or 20 percent of your income every month. That’s how saving habit works. It builds up and grows like compounding interest. All of you can do it, but many of you will not be able to do it. 

Yes, building a habit takes time. The most beneficial saving money habit of practicing every month will transform your overall financial health, which will only get better with time. 

Remember, saving money doesn’t come easy to you. It demands an understanding of your relationship with your money, how to make your money work for you, and being in a happy money zone.

Many people don’t understand it, which leads them to an unhappy money zone means your money circulated in frustration, anger, sadness, and despair. A simple example of being in an unhappy money zone is in a revolving debt trap due to the rat race in today’s world.

Let’s understand the way people handle their finances and their relationship with their own money.

# Normal people handle their money this way

    Income – Expenses = Zero

# Few people with NO money management control in their hand

    Income – Expenses = Debt

# Many responsible people handle their money with good money habits

    Income – Expenses = Savings

# Some discipline people manage money in a disciplined way and enjoying a lifestyle within their means.

    Income – Savings = Expenses

# A few people with SMART financial goals manage money with wealth habits

   Income – Investments = Expenses

Suppose the importance of saving money cannot be understood by you, then you are leading towards an unhappy money zone. Keep in mind that all the advertisements you read or watch are targeting your wallet. They target you to put you in an unhappy zone whether you are using a credit card or personal loan or mortgage refinancing or car loan or high housing loan EMIs beyond your limit.

Earning more money is not so essential to be happy in life. Or saving more money is not the most crucial thing in life. How often have you willingly sacrificed your time to make more money? You’re not alone.

Many people are prioritizing money over time may undermine their happiness. Making lots of money will not boost your happiness. 

It depends on how you spend, save, and think about money shapes how much joy you get from it. It doesn’t do much good for you to learn about compound interest or investment schemes if you don’t know how money affects your well-being. The way you earn money, spend for the lifestyle within your means, and keep it as saving or investing. 

You don’t need a million rupees to be happy. Even if you are earning Rs. 20,000/- per month, you can be satisfied and enjoy happiness in life. The actual game is if you understand the relationship between money and happiness and money management mantras, then you will get absolute joy in your life.

Yes, the real happiness in life.

I have met with many people who earn lots of money or earning a five-figure salary in my professional career. Still, they are in an unhappy money zone like unwillingly paying off credit cards with substantial interest rates or receiving a paycheck from an employer for a job you don’t like but can’t bring yourself to leave, or high housing loan EMIs beyond the limit, etc. Some of them are unhappy with money due to not having good family relationships or disturbed family life. Keep in mind; money can’t buy happiness. 

“Happiness, not gold or prestige, is the ultimate currency.” ~Tal Ben-Shahar

It is more important to be in a happy money zone and achieving your financial goals in life than to be rich. Intelligent people always focus on enjoying their current life and achieving future financial goals with joyful retirement life. 

First and foremost, you want to be happy. Being in a happy money zone your whole life is the most crucial thing in life.

Happy Earning! Happy Life!

I am a CERTIFIED FINANCIAL PLANNERCM, CHARTERED WEALTH MANAGER®. For the moment, I have shared my experience growing up with you because it had a tremendous impact on how I do what I do. If you have a question about your financial situation, please connect with me. I’d be delighted to try to be of service.

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