Welcome to Day 20 of the Financial Freedom Challenge! Yesterday we worked on a non-financial task, as you may remember. Instead today we return to talking about personal finance. Indeed we’re going to learn why is important to save part of our Income and how we can do it.
What’s today’s task?
As I said before today’s task is about saving part of our Income. First of all, why should we do it?
Well, the answer is simple. Here we’re talking about Financial Freedom and as I said many times saving (more) money is one of the crucial steps to achieve it in a faster way.
I’m not saying that we can’t reach this ultimate goal without saving. Considering that saving money is much easier than earning more, by doing so we’ll achieve it much earlier.
Now that we have understood why we need to save (more) money, let’s try to figure out how to do it efficiently.
In theory, it’s not difficult at all. It’s just a simple action that we must do every once per month. The difficult aspect is that we’ll need to do it at least once a month, forever. We’ll need to be consistent in order to be effective. It may appear to be a big commitment, but I assure you that the most difficult part of this task is to start.
First of all, we need to enter in the mentality of saving a part of our Income. It’s very important to clearly understand why we should do it. If we understand its importance accomplishing it will be easier.
If you have correctly completed the task of Day 6 today’s goal is very simple even in practice. Indeed, in this case, you just need to set up a monthly bank transfer from your first bank account (on which you receive your Income) to the second account (on which you have your savings and investments). Easy, right?
So today you just need to understand how you can set up an automatic transfer of this type and any associated costs (very important!). My bank does not charge any costs for this operation, but every bank works differently. My general suggestion is to use bank accounts without any kind of fees/costs.
Do not set it up now. Tomorrow we’ll work on creating an efficient deposit schedule. For the moment just do your research and try to understand how to set up a monthly bank transfer (if you’re not already able to do it).
A brief summary of today’s task of the Financial Freedom Challenge
- Understand the importance of saving money and how doing it gives us a boost to reach Financial Freedom
- Do your research about how to set up a monthly bank transfer and check any associated costs
- Wait tomorrow before setting it up (we need to create a proper schedule, keep calm)
You can follow my path on this blog. I automatically save all the interests and referral commissions that I receive every month. They directly increase my Investment Portfolio so I can say that I automatically save 200-300 EUR per month. In addition, now and then I add new investment platforms. For instance some weeks ago I added Oval to my portfolio and now I’m using also it to save money.
This was Day 20 of the Financial Freedom Challenge. You may think this step is repetitive and maybe you’re right. But properly understanding the huge importance of saving (more) money is crucial for our future, so be patient. As always if you have any questions about this challenge, write a comment and I’ll be glad to answer you 🙂
Besides share in the comments your opinion about this step 🙂
Come back tomorrow for Day 21. I’ll be here for you! Remember to follow us on Facebook and Instagram! Share this challenge on your social media: this will keep you motivated during the path, trust me 🙂 If you want direct contact with me (answers, discussions, doubts, advice…) and the other participants, join our Telegram groups (ENG Group, ITA Group).
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