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13 Things You Need to Know About Saving Money That Could Change Your Life - The Human Employee
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13 Things You Need to Know About Saving Money That Could Change Your Life

13 Things You Need to Know About Saving Money That Could Change Your Life

Okay, so about a year ago, I said to myself, “self, you need to up your savings game.” It’s not like I haven’t been saving, but I knew I needed to save a lot more if I ever wanted to reach my dream savings goal. So, I pinched a few more pennies from my budget and put them away.

At that time, it dawned on me that just but ten years ago, I had no clue about a savings account, let alone owning one. Savings had always been a great mystery to me, and I never thought I had enough to put away.

The truth is, I needed every penny I had and could not spare a red cent. Or at least that is what I thought at the time.

See, I was living paycheck to paycheck and struggling every week to make ends meet. I had never really been taught about money and savings even though I went to school for accounting early on in my life.

I knew how to calculate debits and credits. I could budget my money with the best of them, but savings eluded me in the end.

Saving money was very painful for me at first, but I learned to love it!


I think it was probably the fact that I was taking money away from my everyday expenses and sticking it somewhere I could not use it. What a waste, I thought. I need my money now. What is the point of putting it somewhere to take it out later?

Oh yeah, that was my other issue about saving money. It was never saved, for very long. I would eventually take it out of my account for “an emergency” per se.

Which, in my case, could have just been a, “I didn’t want to feel broke throughout the week” emergency. Like I said, I have always been great a budgeting and never had to borrow money from other people.

So, I thought I was ahead of the game. That is until I learned all the things I did not know about savings. When I tell you it blew my mind, well, it did. Yeah, some of the items are just plain common sense, but when you are living paycheck to paycheck, you don’t think about things in that way so much. At least I didn’t.


Now that I know, I view saving money as a wonderful invention created just for me and my needs. It has made a world of difference in my life, and it can work in yours too.

So you know what that means, yup, I have to share everything I’ve discovered with you.

So, without farther delay, here are the 13 things you need to know about savings that could change your life. Oh, and by the way, if you already know most of these things I am about to share. You are ahead of the game, my friend. Keep at it!

Number 1: Saving money is not a want; it is a need.

More people view saving money as just a want. I want to save money for the future, but a select few know that saving money is a need. You need to save money for the future, present, and if you could have, the past.

As you continue to read the next 12 things, you will quickly see why. 

Number 2: Saving money is a skill, not a born trait.

Saving money is not something you are just born with and know how to do from birth. It is a finely tuned skilled that few have mastered, but many would like to achieve.

To develop your skill in the art of savings, you need to start reading as much as you can about saving money.

If you hate reading, check out YouTube for tons of videos on saving. Whatever you do, just educate yourself on saving money.


Number 3: Saving money can change your mindset about money.

I don’t know about you, but when I first started saving money, my entire perspective about money made a drastic switch. I tried saving in the past, but as I said, I never did it for very long. I would always sneak little bits here and there as I needed it.

Now that I understand how great it feels to sit on the money and not touch it, I’m hooked. I never worry about cash or living paycheck to paycheck again. I always know that I have something set aside, no matter what. It removes the panic you feel when things get a little tight.

Your mindset goes from broke to I’ve got my own back. You begin to feel empowered, and the possibilities in your mind expand.

Number 4: Saving money can save your life.

When you have built up a considerable amount of money in your savings, you have what they call a safety net. This safety net is invaluable in times of real crisis. Not just the times when you are a little short. Having a safety can be life-saving when a serious situation arises that requires large sums of cash to help.

For example, and God forbid it ever happens, but say you are on a cruise ship and miss the return time from your excursion. The boat has departed without you. Oh, no, what can you do.

You only brought enough money to get you through your seven-day vacation, and the ferry to the boat is an extra $700.00 bucks. Fear not, my friend. Thanks to your savings, you can spend the extra dollars and withdrawal a little extra from your savings once back on the boat.

If you didn’t have a savings account, you would have had to spend the cash, then scrip, and scrap your way through the rest of your trip. Hopefully, you would still have enough for the journey back home. Yeah, I know this is not a life-saving event, but I wanted to keep it light.

You know for the newbies (the young ones). No need to get dark, but I know you could probably think of a few life-saving events on your own and may have had some.  Like a breakdown on the highway at midnight, and the tow guy won’t even pick up the phone for less than a cool hundred. You know the one!


Number 5: Saving money can create future wealth.

Did you know that just saving 15% of your income over time can create an impressive nest egg quickly? Did you also know that that nest egg can then be used to invest in your future?

How may you ask? Well, in one of my favorite books, “The richest man in Babylon, by George S. Clason,” the first of the seven rules is the “fattening of thy purse.”

In laymen terms, that means saving money. But the third is, “Make thy gold multiply: invest wisely.” This means, do not throw your money away on silly (un)researched investments, but instead find a good investment and grow your savings right.

Investing in the right things can skyrocket your savings a lot faster than the .05 % interest rate it’s earning in your bank. Take the time to do the research.

Listen to money investment gurus, money experts, read books, and then make your own decision. Just choose wisely.

Number 6: Saving money can teach you self-control and discipline.

If you are not a disciplined person, you’re in luck. The one thing that saving money will do for you is to increase your self-control. You must have the discipline to deposit a little bit of cash each week and not touch it. I started with a savings jar at my desk.

Each day I would store my coins from the day into the jar. Once the jar was full, I would cash it out at my bank and deposit the funds. Sometimes I could get as much as one hundred dollars in that jar. Once I became comfortable with saving in jars, I upped the stakes by depositing part of my income. First, I did $5.00 a week. When I realized I didn’t miss the cash, I took it up to $10.00.

I slowly began conditioning myself to get used to saving. Next, I had to condition myself not to even think about the money in my account. I had to act as if the money did not belong to me, and that took discipline. So, I opened a separate savings account at another bank.

This way, I was not tempted to look at my balance each time when I view my checking account. That was the beginning of me saving my money, and I have not looked back since that day. I continue to test my limits and set new goals. Try it!

Number 7: Saving money can prevent having to borrow from other people.

The very first thing I noticed when saving money is that I didn’t have to worry about borrowing from family or friends. Let me clarify; I was never a borrower in the first place.

I hate owing money to anyone, so I never borrowed. But this was having the freedom of knowing if I needed the money, the only one I would have to borrow it from was myself.

I could then choose whether or not I wanted to pay myself back. I often found myself paying it back to keep my funds balanced. However, when I tell you the feeling is great, it is just as I say, GREAT!

Number 8: Saving money changes the way your bank views you.

When you hold a large amount of money in your bank account, it changes how your bank treats you. If you never noticed, check it out. When you have a fat account, they’ll send you one offer after another.

The account rep will ask how you and your dog have been in small talk. Why is that? Well, it’s because your money makes them richer.

The more you deposit into your account, the more the bank has to invest. See, the bank lends your money to other people. Yes, no, your money doesn’t just sit in the bank.

It circulates and exchanges hands many times in a day. The number you see on the screen is nothing more than an accounting post. The real cash is moving and growing by the second. Each time you make a deposit, they have the extra money to build upon.

Number 9: Saving money can increase your net worth

Saving money can increase your net worth.

The more money you save, the better your personal net worth will look. What is net worth? It is what is left over after your expenses are deducted from your income. 

The Formula 

Assets (What You Own) – Liabilities (What You Owe) = Personal Net Worth

With an increase net worth you can begin to think about adding assets to your financial situation such as real estate or collectors’ items.

Learn more about personal net worth at https://wealthynickel.com/personal-net-worth-statement/

saving money

Number 10: Saving money can make you a real estate owner

Speaking of increasing your net worth, one of the best ways to do just that is to purchase real estate. When you save money, you build a nest egg that can be used to buy more substantial items.

These items, such as real estate, can then be used to bring in passive income. That passive income will, in turn, increase your monthly savings.

It’s a beautiful cycle of income that you do not have to go out and work to bring home directly. You can buy a rental home for below market cost, repair or do cosmetic upgrades to the home, then turn around and rent the house for a rental rate.

Check out YouTube for videos on real estate investing to help you get started for free https://www.youtube.com/results?search_query=how+to+save+money


Number 11: Saving money could afford you a very comfortable retirement.

Retirement is never as far away as we think, and it’s never too early to start saving. When you save for retirement early, you can accumulate a hefty nest egg that will sustain you through the average length (20 to 25 years) of retirement. 

If you also choose a savings option that offers compounding interest that can grow your savings even faster. A great site that shows the best saving accounts that compound interest is www.Ratecatcher.com.

I have no affiliation with this site, nor do I make money from telling you about it. I believe it is a great starting point for learning about savings rates.

Number 12: Saving money creates peace of mind

Saving money is a great relaxer. The best feeling in the world is knowing that you have a lump sum of cash just sitting in the bank untouched.

It brings peace of mind when you don’t have to worry about money. I often think back to the days when I was living check to check. Those were some of the most stressful times in my life. I was in a panic when an unforeseen financial event took me by surprise.

No one likes to get caught off guard when an emergency pops up. Unfortunately, when you live paycheck to paycheck, crises seem to pop up every minute. After suffering for many years and feeling the devastation of crushing financial burden, I decided to stash some cash. At first, it was just for “in case of emergency” reasons.

However, later after seeing how wonderful it felt to have some spare cash to rely on in dire needs, I realized what I have been missing, peace of mind. Having available money that was not for anything specific opened a whole world of possibilities.

I no longer felt trapped when a situation would arise that took money out of my pockets. My new phrase was, “I got this” instead of “Oh Crap, now I’m broke.”

saving money

Number 13: Saving money can save you in times of job or income lost

Having at least 6 to 12 months of bill money, stashed away can help when times are tough.

There is no better feeling than knowing if you lost your job today that you will be financially okay until another opportunity arrives. I often suggest to my children that they save at the very least six months of income.

That way, they are prepared for life’s little emergencies and never have to rely on others to help out. The best rule of thumb is to calculate your monthly expenses and use that number to determine how much you need to save.

So, for instance, if your monthly income is $ 3,000 and your expenses are $2100.00. You should save at least $ 2100.00 x 6 = $12,600.00. That is how much should be in your bank.

It will, of course, take time to build your savings that large, but you can start at any level. I started with just $5.00 a week.

Once I felt comfortable, I increased that amount. The crazy thing is, I didn’t miss the money. I thought I would, but I didn’t.

Just Remember

The most important thing to remember is that it doesn’t take a lot of money to get started.

You can start saving with as little as $1.00. Don’t laugh! Even a $1.00 can accumulate into a small fortune.

For example, if you decide to save your change from the day each day, this is how it would look. Weekly lunch is $13.95 – $ 15.00 = $1.05 next times that by 30 days = 31.50. Next, times it by the year 31.50 * 12 = $378.00.

Boom, you just saved $ 378.00 in one year solely by putting away your spare change. Some apps help you do it automatically. I like Acorn, which rounds up purchases you make and invests them into your portfolio.


The second thing to realize is the peace of mind you will gain by having money set aside for times of need. There is no better feeling than knowing you have “got” any emergency that’s presented.

Lastly, a nest egg will assist you in having a more comfortable retirement. So, recondition your mind into believing it is possible to save. No matter how much you have available to save, just get started.

The sooner you begin, the fatter your savings will become


All images provided by pixabay.com

Tamiko Williams

Tamiko is a Certified Mindset Transformation Coach, the CEO and managing member of Averette Technologies LLC, and the founder of The Human Employee who possesses over 20 years’ experience in business management, customer-oriented relationships, technology, and coaching. She holds two degrees in both business and development along with a master’s degree in computer science. She has dedicated her life to helping others achieve their dreams.

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