At first, not saving money can feel quite innocent. Your bills and rent get paid, things you want buy, and you rationalize that you will save money later. Many people can do this for years, as life often demands that we prioritize our immediate needs over future desires. But what happens after a decade of no savings? How does this affect an individual and their financial situation?
This is the story of what happens in 10 years' time to somebody who does not save.
THE FIRST YEAR
Is usually fairly innocent as things seem to flow fine. You get paid, take care of your expenses, and have some money to spend on things you enjoy, or whatever you need. If something were to happen, it could usually be managed as it is either not that expensive or you could use a credit card or loan. Life seems okay, and money is not particularly stressful.
It seems almost unnecessary to save as not much seems to happen anyway
Your lifestyle seems to be working, and you feel you have no other need for savings.
You see other people spending all of their money and having seemingly nothing saved, and you do not feel there is any reason to change. You feel you could manage just fine.
THE SECOND YEAR
Is much the same, although things usually start to get a little tighter. Perhaps you had some unexpected expenses during the year that had to come out of your pay, or you had to use a credit card.
You may now have some difficulty with larger or unplanned expenses during the year, as you do not have the money to simply pay for them outright, and it may take longer to pay off credit cards, which are now a regular fixture in your life
You feel you are barely managing but are okay overall.
THE THIRD YEAR
May be the year when you actually get into debt. It is not necessarily crippling debt, but it is enough to make your life slightly more difficult. You are now constantly having to make payments to various creditors, usually right when you receive your paycheck. You find it much harder to get ahead and do things in your life as any extra money seems to just go towards paying off your debts. Your financial situation has become a lot more precarious, and you are always waiting for something bad to happen.
You may feel that you are working and working but never getting anywhere with your finances.
THE FOURTH YEAR
Without any savings, opportunities may come and go as there is no money to invest in them. Perhaps there comes a new and better job or a cheaper and more suitable place to live or maybe starting a new business on the side. It all could lead to a better life if only there was some money to invest in it
This is another reason why having savings is important. It is not only for financial security but also for taking advantage of new time-bound opportunities
A new job may require you to move.
For courses or certifications, you may have to pay some fees.
Some great business idea may simply remain a dream if one does not have any money to fund it.
People with savings can take risks but for people without any financial cushion, it may be very stressful.
It leads to frustration where it seems like the world is moving on without them while they are stuck.
THE FIFTH YEAR
By the fifth year, the stress of having no savings can become a normal part of one’s life. It stops being a one-time thing and starts to affect people in deeper ways. For example, one may find themselves checking their bank account repeatedly or procrastinating paying their bills or maybe they feel their heart race at the site of unexpected expenses.
Being in a constant state of worry and stress takes a toll on people in many ways. It affects their sleep patterns and concentration, their patience and temper and even their relationships with other people.
THE SIXTH YEAR
Can be one of disappointment, shame, and even anger. You may feel that you have not had the financial support from friends, family, employers, and other people in general that you feel you deserve. You may have grown used to a certain level of support from others and feel that you are owed this, whereas those who have been saving do not have to ask for as much support.
You may feel embarrassed to ask for help and also resentful when people do not automatically give you the things you feel you are due. Saving money is important as it allows us to be independent and not have to rely on other people, even when it is only a small level of reliance.
THE SEVENTH YEAR
Can be one when you start to feel that you cannot really have any dreams or aspirations for yourself, and that all you can do is plan things out to a certain point and then hope that nothing bad happens. You may find that any aspirations you had for a house, travel opportunities, your family, or even your finances are all constantly put on hold and never really materialize as you just do not have the money for them.
You may start to accept the fact that your life will probably not be as grand as it might have been due to your financial situation
but it can certainly be disappointing, nevertheless. Your dreams and aspirations may start to be tempered by your financial situation, and you may start to feel that you are stuck financially.
THE EIGHTH YEAR
Is often when you feel trapped in your job. You may have started to hate your job but feel you cannot do anything about it as you have no savings or financial buffer to allow you to quit or even take some time off to look for a new opportunity
You may feel that your life is constantly on the brink of disaster if you lose your job, you may start to fear being laid off, and you may be burned out from your job with no other options.
THE NINTH YEAR
Is usually marked by lowered expectations. You may have started to feel that you are not really good with money or that you do not have much with money or that you do not have much opportunity with money
Many people who have been in this situation start to feel somewhat lower in regards to their self-confidence and self-esteem as they see other people doing things but feel that it will never happen to them. The situation is rarely due to a lack of ability with money but more due to a lack of opportunity or chance and a poor attitude towards the situation.
However, it can feel very demoralizing.
The tenth year is the year when you realize that you have wasted a decade
You may have lost out on many opportunities, and while life may seem to have gotten by, it may feel that it was at the cost of a lot of extra stress, debt, and financial worries and that you may have had a much more enjoyable decade if you had set something aside for yourself.
You may be much more aware of your financial situation, but it may feel too late to make any significant changes
Although it is certainly never too late to save money, it does become much more difficult later on in life when you have to start from the beginning again. It is much better to start as early as possible as even small savings can build up in time and help you to manage your finances with a lot more ease and have breathing room when things do not go according to plan. Although you may have spent ten years without saving money, it is important to remember that it is never too late to start.
Why Saving Matters More than We Think
Saving is not about being perfect. It is not about living like there is a string attached to every pleasure you buy and every impulse you give in to. Saving is about padding the distance between you and the proverbial cliff. The bigger the cushion, the less likelihood of a heart-stopping fall.
Saving is one of those ideas like that, and a little goes a very long way. I think sometimes we feel that we have to save great wads of cash before we can actually feel like we're making a difference, but really, all it takes is a beginning. Any beginning.
The Final Thought
If you don't save, it's not that life will be terrible, but that it will be gradually exhausting. You'll get by, and continue getting by, but without the comfort and security of having something put away, every day is a little more stressful and a little more fraught with possibility for going sideways.
You'll work and spend and work and spend until a decade has gone by and you realize how much life has slipped away because you didn't have the savings to make the most of the opportunities you had. The truth is, life really doesn't change that much from one year to the next.
If you were worried about getting by at thirty, you're probably still right to be worried about getting by at forty, fifty, sixty. That's why you save. Not to have some great trove of wealth waiting for you, just to begin. That's all it takes.
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