The last day of October is globally symbolic. It is the day set aside to celebrate World Savings Day. A day individuals, children and families are reminded of the necessity for imbibing a savings culture as the panacea for a financially secure future.
This year is no different, but the theme is. The 2021 theme “Understanding the importance of savings” highlights the critical role saving plays in every individual’s life, either in planning for retirement, education, next career path, property purchase, marriage, travel, holidays etc.
It is imperative to be prepared for both purpose-driven objectives and unforeseen circumstances, for which savings is pivotal as a lifesaver at financially shocking times and the tool to achieving a financial milestone that would have left holes in the pockets. The proponents of savings habit would argue that even when there are no ready plans for the money, you should still save for the love of it.
The Savings Bandwagons would go on to cite the report by Global Findex Database, that “in 2017, about 48 per cent of adults around the world reported having saved or set aside money in the past 12 months. In high economies, 71 per cent of adults reported having saved, while in developing economies, 43 per cent did so”.
But then there are the Opponents who make up that 52 per cent that would argue otherwise. They are in the majority, so why change now? Why take a beating now so that you can smile in the future. There must be a way or two on securing the future without being a financial burden today. In this edition of the “Insuring Happiness” series, we highlight five reasons why we think you should not bother about savings at all.
Read also: I-invest leverages tech to provide safe investment opportunities, build savings culture
1. You already have control of the future
Savings are usually attributed to planning for future needs, financial obligations, or dedicating a certain amount of money to meet specific goals, but why bother about saving for the future if you have everything in control?
If you are assured that the nearest or distant future would not do a number on you, the next hour, day, month or year, then the future should be the least of issues to be worried about in your bucket list. If there is no future to plan for, then there is absolutely no reason to be cautious by denying yourself the pleasure of today’s instinctive spending for an imaginary benefit of tomorrow. So, if you are sure tomorrow will not come bearing worries of financial baggage, then World Savings Day is not yours to commemorate.
2. Your supply of wealth, like the oceans, never runs dry
Savings is one of the strategies to ensure financial freedom and wealth creation. However, if you are confident of an endless flow of wealth that cannot be altered by any form of economic fallout such as inflations, health pandemics, or civil upheavals, you should be bold to not bother about saving.
What this means is that you have more supply of wealth than globally acclaimed billionaire investor Warren Buffet, the fourth richest person in the world who famously said, “do not save what is left after spending, but spend what is left after saving”.
On the ever-sufficient oceans, an article published in August 2020 in the World Atlas revealed that the Pacific Ocean, the world’s largest ocean, estimated to make up 28% of the Earth’s surface, is slowly shrinking at a rate of 0.5 square kilometres (0.19 square miles) per year, due to climate change issues. Maybe some things are not what they seem.
3. Emergency. Which emergency?
If you are certain that there would be no rainy days, no need for emergencies; you are the ruler and master of situations and circumstances, you are “all-seeing”, “all-knowing”, “omniscient” and able to conquer whatever comes your way, then no need to save. Instead, live life to the fullest, enjoy every moment, splurge, and spend without holding back because you already know things would south or break down. If your life is clear of emergencies, then building a culture of saving is not for you—no need to join the Bandwagons to celebrate World Savings Day.
4. Spending for you is “Point and Kill.”
If spending is for you the way ravers buy fish for a delicate pot of pepper soup at local restaurants, where you order by simply “point and kill”, then you have nothing to do with saving.
If spending is as instinctive as the ‘point and kill’ buying process, why spoil that by putting away some cash that would have gone into the latest gadget, eating out at the latest fine dining restaurant or grabbing the newly-arrived fashion statement? Live the life and stay away from savings.
5. You have got your own back
Having a support system to rely on during difficult situations is one of the riveting feelings that makes life worth living. At specific points in life, everyone would need someone other than themselves to come through from them, especially when life demands that extra support, grit, or help to overcome a situation. However, if having your own back is your forte and your competitive advantage, no life situation will demand going the extra mile for support – then again, the need to save is not for you.
Nevertheless, the fact remains that when life hits the hardest, you would need a more solid partner to back on. This is where insurance comes in. The relief this smart risk management tool gives is enough to ensure that the future is no longer bleak. Whatever the demand is, either an emergency fund, retirement plan or property purchase, the need to have reliable and efficient support is crucial.
An example of a reliable support system is the Leadway Target Plan. This plan ensures that an individual’s future financial objectives and obligations are met within a specified period. In other words, the plan helps you to put funds aside for life-defining goals such as getting a new car, getting additional educational certification, starting a family, acquiring a property, etc. Beyond helping you meet your financial goals; this plan also helps instil discipline as you are obligated to save at specific times consistently. What this means is that despite the numerous genuine reasons that might warrant you to stop halfway, you are compelled to continue till you meet your target.
An added sweetener is that the Leadway Target Plan (LTP) is more than just a savings plan, it also comes with additional protection benefits- for example, should death occur during the policy term, the target sum is paid to the policyholder’s beneficiary. It is indeed a smarter way to save and plan for your financial goals.
