How I am Regaining My Financial Independence With a Short Term Savings Plan

by Pauline

“I“I t was a home marked by insecurity. She did not like insecurity. She said it again. Security.”  The Shoe Dog.

Our relationship with money like any other relationship comes from what we saw growing up. If you grew up in an insecure environment you will fight for security. You will always want to ensure there is money in your account stacked safe with no risks.

If you grew up in a secure environment your mindset may be more of money will always come in. Spending money and taking risks may come easily for you.

One of the causes of depression is money. Lack of money will cause anxiety. Thinking about rent that is due, food, fare and other expenses without a stable income causes massive anxiety.

I have been there, and when I am about to write on how having an emergency account can save you the stress, I know for sure faith saved me. I chose to believe that by the time I needed the money God would provide. I chose to hold on to the times He had provided and believe He will do it again. I had faith, the size of a mustard seed-and that was enough.

I know that God gives us wisdom. The wisdom to create wealth and the wisdom we need to use our resources well.

When I contemplated quitting my job in January, my main obstacle was money. I looked at my liquid savings and was appalled. There was nothing to be proud of or to claim that I could live on it as I thought of the next thing.

(Check post)

In all honesty, if I quit my job in that position I could have slowly fallen in debt and depression. I contemplated going back home and if worse had gone to worse I would have gone home.  I know I would have been welcomed but I also knew the comfort at home would rob me of the person I was trying to become.

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I promised myself that I would do better with my short term savings. I knew that I could buy my independence by using my resources well so I took the following steps towards financial security;

source: pinterest

Focused on My Short Term Savings as Much as I Do on My Long Term Investments

If you have long term savings then you know how hard it is to liquidate that in a short notice. You also know it’s not wise to stop them before at least breaking even-the point where your savings has made a positive return.

I decided that a certain percentage will always leave my account on payday to go into my money market fund-a short term savings account.  This account not only gives you discipline of saving but also a reasonable return.

Changed My Mentality on Short Term Savings

The common term for short term savings being an emergency fund is itself not an incentive to save. It implies that we are saving for a bad day. While this is mostly the reality, I chose to look at it as a dream enabler.

That’s not farther from the truth because having a backup plan means I can go after my dreams without thinking of expenses.

Last year most companies let go of employees and I have friends whom I see thriving because they had made better financial decisions when they had an income. It’s planning for the unknown because God gives us wisdom to do so.

Being Intentional and Having an Accountability Partner

It all comes down to being intentional. Being intentional on what I spend my money on. Understanding my wants and needs and what I can forego. There were things I couldn’t get away with completely but what I did is cut down the amount of money I spend on them.

My accountability partner not only checks that I have saved some money but we also started a weekly savings plan where each one contributes at the end of the month. This means my weekly black forest cake party comes to a stop. I can live with that.

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I don’t have loads of money. I don’t save much but what I understand is that I will never have loads of money if I don’t start accumulating now.

“Haba na haba hujaza kibaba”

 

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