Because I work for a business that focuses on long-term savings, I often get asked where the savings journey begins. People ask when you should start, how much you should have to start with, and how you will know how much is enough when you save. These are important questions, but I think the focus on them at the beginning of a savings journey may overwhelm clients. Saving for far-away dreams seems to be such an evasive concept if they don’t make it real for themselves. They must bring the ideas of their future life a bit closer – they have to make it practical.
That’s why we must start with the purpose or reason for living. What do we want from life? To be there for my family or build a business that will survive my grandchildren? Write a book or be a Michelin Star chef? Living comfortably and being able to travel? Even when I turn older.
When something guides a client’s dreams, it’s easier to make a concept like saving tangible. It helps when they see things happening with their money that makes them feel like they’re living. They’re dedicated, because they’ve made a conscious decision to make some sacrifices today for their dreams tomorrow. It’s worth the effort to save because it contributes to a meaningful life, which motivates them to make better decisions.
Yes, retirement may be decades away, and their children’s education is not in their face when they are born, but their vision of the future will be easier because they’re linking it to real life.
I ask myself, what do I want my future to look like? That way I’m making it more human, and less intimidating. What will happen when all my current financial challenges are sorted? I think this makes it easier to do something about it. I then realise, action is routine, and that saving makes living a purposeful life practical. Clients will become a conscious savers when they are mindful that money is important for making a dream real.
A lot of people talk about conscious spending, which is being deliberate about the priorities they set for what they spend money on. Conscious saving, which flips the coin, is about giving money a purpose: Seeing how a decision made today plays out in future.
So, when should a client start? The minute they know what they want for themselves. That is when they will be ready. If they haven’t started saving, they should forgive themselves. It’s tough out there. Now that they know better, they can do better. As they gain knowledge, they can make better financial decisions, and nothing will be more timely than professional financial advice.
They will realise that their small decisions will add to their bigger goal. They will also realise with time on their side, money can grow and withstand jostling markets. They will most of all realise that compound interest is an incredible money friend. One that will bring out the best out of what they’re putting in. Small, consistent actions, knowing what they want for themselves and some sound advice will go a long way.
Yes, it would have been great if they could have started saving with their first paycheck, but it’s never too late to start, and everyone’s unique circumstances define them. Maybe their time for starting to make smart money decisions is right now.
Their dreams are valid. They must use them to propel what they will need to make them true. They don’t want others to shape their destiny. They shouldn’t wait for life to give them a reason to start saving. They should give themselves a reason.