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A Couple Of Reasons to Save Money

This article muses on the importance of saving money in a world dominated by technological progress. The bottom-line is rather straightforward but quite hard to envision for most people, i.e. save money today for the tougher uncertain tomorrow.

Why Save Money?

Saving money contributes immensely to building your wealth. Having lived in a couple of countries, it became apparent that earning a high salary would not always guarantee having much wealth. Wealth is therefore reliant on your saving rate, basically, everything left after taking care of the expenses (including taxes).

Interesting data here on saving rate around the world by OECD, and this nicer representation of where families save the most by Value Much

Household_Saving_Rate_Around_World Image Source: Value Much

Noting that a high GDP does not imply a high saving rate. (Curious: Do people save more in countries where income taxes are the highest?) Given the context that wealth should be dependent on saving rate. Wealth is also relative to where you live, the lifestyle you lead and the expenses you incurred on a daily basis. But unfortunately, $1 spent in a particular country/city is not equal the same $1 spent in another country/city/town/village. Henceforth, saving money today, regardless of your location, is relative to the value of wealth you need to live on.

Wealth beyond a certain level is about ego or plainly, psychology. Based on Maslow's Hierarchy of Needs, income & spending on the basic needs are meant to fulfil the individual's physiological needs and perhaps, safety needs as well. Anything beyond the materialistic needs for spending is probably in some cases an expression of ego, i.e. I have money or I pretend to have money. This article on the Huffington Post summarizes a tad bit of information regarding money and behaviour.

Saving_Money

In this article, How to Trick People Into Saving Money, the author shared how the Walmart is helping (whether willingly) its customers to save money (and build up their savings account). From that article and the flourishing financial technology industry, there are definitely many more ways to save money nowadays by leveraging on technology. It is a matter of perspective: How you could and should spend your money will influence how much you will be saving. **Thus, saving money and one's saving rate is better than before within one's control. **

In a world of uncertainty where the cost of living keeps increasing, countries are ruled by oppressed oppressors and the list goes on. Saving money becomes an essential part of the art of living (morphing and aligning across cultures, countries and people). **There is no perfect reason to save money other than weathering for the uncertainty of tomorrow. **Above all, saving and building wealth will (hopefully) provide a degree of freedom when the time is right.

With the uncertainty of tomorrow and with technological progress, saving money seems to be a principle to live by.


A list of savings app which could be of interest to anyone (do note some of these apps are not available worldwide):