Many people underestimate the magic of compounded savings. Two years ago, when I was wooing my wife, I gave her a plastic piggy bank as an anniversary gift. I noted back then that she had difficulty saving regularly because she needed to repay her student loan and supported her family.
So I gave her a piggy bank hoping that she developed the good habit of saving. She was pleasantly surprised to receive the gift and made a commitment to deposit only one dollar coins in it. Subsequently, I also bought one for myself and after we got married, we challenged ourselves who can save more.
Recently, both of us decided to count the number of one dollar coins in our piggy banks as my wife’s piggy bank was filled to the brink. Before counting, it was obvious that I had lost as mine was only about one-sixth filled. Nevertheless, we were very excited to know how much she had saved over the last two years. In the end, we counted 2000 one-dollar coins for my wife and for me, its less than $200. Both of us marveled how much she had saved considering that she is now a full-time housewife with no income. When she was working, she don’t even manage to save this amount.
I suppose the amount of money that my wife had saved is nothing to shout or brag about. But the moral of the story is that it doesn’t matter how much income you earned or how much money you spent that determined the amount of saving you have.
Of course it is always a good thing to have high income, but at the end of the day, if you don’t make the conscious effort to save, you will not have much savings. Many people thought that having high income and spending frugally can increase savings.
But in my opinion, I believe only regular saving can lead to substantial savings. Monthly saving account, which transferred part of your income to a saving account, and piggy banks are good means to start saving.
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