[Episode 26] The mindset of putting saved money toward the future
Thank you for reading this far.
Reviewing your fixed costs,
and adjusting your variable costs within a reasonable range.
Even if it's just a little bit,
"I'm starting to have more money left over than before."
If you're starting to get that feeling, you're in a very good state.
However, there is one important thing here.
And that is—
Money you save will disappear if you leave it as is
is what that means.
Money that is gone before you know it
Money you've saved and now have a little extra of.
At first, you're happy,
thinking, "I'll use this for a nice meal out"
or "I'll buy that thing I wanted."
That in itself is not a bad thing.
However, what happens if that continues?
Before you know it,
you're back to where nothing has changed.
・Your savings haven't increased
・Your future security hasn't increased
"I worked hard, but nothing was left."
This is the most wasteful pattern of all.
Just by changing how you spend 5,000 yen, you can change your future
For example, 5,000 yen a month.
If you go out for drinks once,
that is an amount you would spend in the blink of an eye.
But, if you take this 5,000 yen
and set it aside for the future every month,
1 month: 5,000 yen
1 year: 60,000 yen
You might think that is just a small amount.
But with 60,000 yen,
you could go out for a nice meal with your family,
you could buy things for your children,
or you could even go on a short trip.
Money that would have otherwise 'disappeared without you noticing' can become...
Money that will properly remain in a tangible form
will be the result.
How much can you set aside with an average income?
Let's look at this a bit more concretely.
The average annual income in Japan is said to be around 4 to 4.5 million yen.
In terms of take-home pay, that is about 250,000 yen per month.
Within this amount,
5,000 yen → approx. 2%
10,000 yen → approx. 4%
is the general idea.
You don't have to aim for 10% or more right away,
Even starting with an amount like this,
is meaningful enough.
What is important is,
to "set aside what you can for the future."
that is.
Don't save money only "if there is any left," but "set it aside first."
Let's change our way of thinking here.
Up until now,
"save or invest if there is any left"
has been the approach,
but from now on,
change it to
"set it aside first."
When you receive your salary,
living expenses
future money (savings/investments)
should be separated first.
Then,
live on the remaining money.
Just follow this order.
Automated savings
And for that, what I recommend is
automated savings.
On a fixed day every month,
a fixed amount
is automatically withdrawn.
The good thing about this is,
that you don't have to hesitate.
Should I skip this month?
I want to spend a little.
You won't be swayed by those kinds of feelings.
It's okay to start small.
It doesn't have to be a large amount right away.
First,
5,000 yen a month
or 10,000 yen
But that is enough.
What is important is,
not the 'amount,' but 'creating a flow.'
Systems change the future
What we have done up to this point was,
organizing your expenses
saving without strain
was it.
And in this episode,
a 'flow where money remains and accumulates' has been created.
All that's left is to keep this flow going.
Even if it's just a little bit each month,
money will steadily accumulate for your future.
Things to do today
Even if it's just 5,000 yen a month,
try deciding on an amount of "money to set aside for the future."
Summary
Money doesn't stay just by being conscious of it.
But if you set it aside first,
it will naturally accumulate for the future.
It doesn't have to be perfect.
To start, even just the cost of one night out is fine.
Please try to create a flow that directs money toward the future.