Savings: the key to financial and mental well-being

There is a lot of talk about saving as a goal to achieve but little is said about the psychological benefits it brings. Have you ever thought about how many times a day you think about money? More than money, how many times a day do you think about money-related problems. Questions like, Will it be enough for me to pay for car insurance? Will the credit card be very exploited? Will I be able to indulge myself?

And I already know what they may answer, that I am speaking to privileged people who can save part of their salary. And yes, they are right. There are some who can only live day to day, and can only think about how to feed their family. Maslow already said it in his pyramid of human needs: at the base is physical survival and only after satisfying this level can we think about accessing the other steps.

But let’s return to our objective of this little reflection. Is saving an achievable goal? Yes it is, but again they will tell me “we live in Argentina, it is impossible with a salary depreciating all the time”, and they are also right. That does not mean that Even in a complex inflationary scenario like the one we currently have, it is not possible to create a monthly budget and program objectives.

In this society we were taught that it is better to go into debt than to save, and unless you are an expert in the matter, It is preferable not to incur future debts if we do not know if we can afford them. Is it okay to go into debt in some cases? Yes, of course, for example, in a context of inflation when the interest rate is below, but it will not be the objective of this column. The greater the knowledge on the subject, the easier it will be to evaluate the risks, but Here we will start with the most beginners of all.

Saving is a basic point of the things that must be achieved for the long-awaited mental health. An orderly life, in all aspects, will contribute to this feeling of well-being. Taking care of the body, taking care of social relationships, will be some of the necessary points to have mental balance and here it will also be very important to include the financial aspect: moderate consumption, organize expenses, set savings goals, and if achieved, try to invest.

Economic stability produces a feeling of security. Knowing that there is financial support, Stress and anxiety associated with unforeseen situations are considerably reduced, allowing people to maintain a state of calm and control in their lives. In addition, a feeling of achievement is generated that directly influences self-esteem and confidence. The ability to have Control over personal finances reinforces the feeling of empowerment and reduces vulnerability to possible crises.

Saving helps maintain healthy habits. It is bringing to consciousness how much I earn, how much I spend, and how much I can allocate to savings. It helps to pay attention, to put the focus there. Much more important even if I do not receive a single salary, or once a month. I’m going to be much more attentive to when I make small expenses, the so-called “ant expenses”, to being able to say yes, or no, without guilt and fully facing the consequences.

First step, order; second step, objectives

And here I want to stop. Why do we save? Or rather, what do we save for? And if I reflect for a few minutes I answer: to achieve objectives. I save to travel, to pay debts, to buy an object that I need. Setting goals helps you meet your goal and gives meaning to savings. Because saving just because, without a basic need, will be even more difficult to achieve. We will call this: savings goals and from here we can think about the short, medium or long term.

I can also save to feel calmer. Have money available that will only be spent if I have a problem produces mental relief, clears the mind of intrusive thoughts, and helps maintain focus on other goals. Have an emergency fund can be a big relief: It is about collecting an amount of money that we will have available to use in an eventuality. It is recommended that it can cover at least three months of expenses, although six is ​​ideal.