What a Gen Zer who paid off over $50,000 of debt says people get wrong about saving money
Saving money is not a chore, says financial influencer and author Berna Anat. It is a way to pay yourself first and set up financial freedom.
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Bernadette Anat
- After paying off $50,000 in debt, Berna Anat started saving money seeking financial freedom.
- Many people view saving as a chore or something that is hard to do.
- However, Anat says saving is setting yourself up for freedom in the future and should be celebrated.
Many people think that saving money is hard or that it is a daunting, never-ending task. According to Berna Anat, author of "Money Out Loud," we've got it all wrong.
"Saving is one of the best things that you can do for your life," writes Anat, who started saving money to reach her life goals after paying off over $50,000 in debt. Anat found herself in $42,000 of student loan debt and added another $12,000 in credit card debt after moving to New York. Anat writes that she taught herself how to pay off the debt and that "budgeting unlocked all the best parts of my adult life." This includes saving.
Anat writes, "Saving money unlocks your wildest dreams. And the truth is, whether your dream is to buy stuff, buy experiences, or buy time, everyone is saving money for one thing: freedom."
She continues, "We save money to get free and that is what your savings should do for you. Financial freedom looks different to everyone, but you will not get there without saving."
How to save money the right way
It's easy to find saving tedious or punitive when you're saving just to save. Saving is a tool to help you meet your financial and life goals — and you can decide ahead of time how that money will be used. Anat writes, "You should get very specific about your saving goals. Give yourself direction by having very specific goals you are saving for."
Saving money is the ultimate pay-yourself-first move, and being specific about what you are saving for gives you something tangible to reach for. "When I deposit money into my savings, I feel like I am sticking money in the pocket of my Future Self. Whether it's for a vacation or retirement, I think that my Future Self will thank me one day."
The reason you are saving the money will keep you motivated when other things aren't inspiring you. Also, keeping your eyes on the prize can ease the temptation to dip into that savings account.
It's easier to put money aside for the future when you have the money to save today. But don't expect money to just show up or that using coupons will make all the difference. Sometimes, you don't need savings tips or tricks; sometimes, you just need more money.
"Saving money, at the core, is about math and the math has to match," Anat writes. "You have to earn more than what your life costs in order to save money. If you are using all of your dollars right now, then you literally have nothing to save for later."
If you think that saving is a chore, you're doing it wrong. Anat writes, "You should be celebrating every time you make a deposit into your savings account. Saving not only gives you freedom, but also security. By saving, you can respond when life happens instead of life just happening to you."
This article was originally published in August 2023.