The Importance of Savings

By: Sonia Lee Ng, CPA, CPFC®

Updated: 8/19/2025

Many people overlook the importance of saving. Saving is paying ourselves.

"Don't save what you have left over after spending... Spend what you have left over after saving" - Warren Buffet

Saving is very important if we want to achieve financial independece. If we save, we can have money for a downpayment on a car, a down payment on a house, cover for unexpected expenses, an emergency, funds to survive for a reasonable time in case of loss of employment, help with children's education, to start a business; and most importantly, for our retirement. Our goal should be to live free from the slavery of debt.

The myth that the more we earn, the richer we will be, isn't entirely true. It's not how much we earn, but how much we spend. A person can earn much less than another person, but if that person owes less money and have fewer expenses, he or she will be in a better financial shape than someone who earns more income but has more debt and higher expenses.

Tips for Saving

We should start saving as soon as possible. We need to change our mindset. There are people who people say, "Why should I save? What if I die tomorrow? Someone else will enjoy my money!" - Comments like that. But in the reality, sometimes, you don't die and you hace financial problems later in life because you didn't save.

No matter how small the amount, it makes a difference when we least expect it.

Cash

Put all your coins in a piggy bank, and when it's full, deposit it into a savings account. It's preferable not to have a debit card in the account, and avoid using that money.

Avoid carrying a lot of cash on hand in your wallet.

Collections/Paychecks

Every time you get paid, set aside a specific amount to save before paying for other things and spending the money. You can set it at 5%, 10%, 20%, etc.

52-Week Savings Challenge

Week Amount Balance Week Amount Balance

1 $ 1.00 $ 1.00 27 $ 27.00 $ 378.00

2 $ 2.00 $ 3.00 28 $ 28.00 $ 406.00

3 $ 3.00 $ 6.00 29 $ 29.00 $ 435.00

4 $ 4.00 $ 10.00 30 $ 30.00 $ 465.00

5 $ 5.00 $ 15.00 31 $ 31.00 $ 496.00

6 $ 6.00 $ 21.00 32 $ 32.00 $ 528.00

7 $ 7.00 $ 28.00 33 $ 33.00 $ 561.00

8 $ 8.00 $ 36.00 34 $ 34.00 $ 595.00

9 $ 9.00 $ 45.00 35 $ 35.00 $ 630.00

10 $ 10.00 $ 55.00 36 $ 36.00 $ 666.00

11 $ 11.00 $ 66.00 37 $ 37.00 $ 703.00

12 $ 12.00 $ 78.00 38 $ 38.00 $ 741.00

13 $ 13.00 $ 91.00 39 $ 39.00 $ 780.00

14 $ 14.00 $ 105.00 40 $ 40.00 $ 820.00

15 $ 15.00 $ 120.00 41 $ 41.00 $ 861.00

16 $ 16.00 $ 136.00 42 $ 42.00 $ 903.00

17 $ 17.00 $ 153.00 43 $ 43.00 $ 946.00

18 $ 18.00 $ 171.00 44 $ 44.00 $ 990.00

19 $ 19.00 $ 190.00 45 $ 45.00 $ 1,035.00

20 $ 20.00 $ 210.00 46 $ 46.00 $ 1,081.00

21 $ 21.00 $ 231.00 47 $ 47.00 $ 1,128.00

22 $ 22.00 $ 253.00 48 $ 48.00 $ 1,176.00

23 $ 23.00 $ 276.00 49 $ 49.00 $ 1,225.00

24 $ 24.00 $ 300.00 50 $ 50.00 $ 1,275.00

25 $ 25.00 $ 325.00 51 $ 51.00 $ 1,326.00

26 $ 26.00 $ 351.00 52 $ 52.00 $ 1,378.00

There are many other savings plans or challenges you can create and implement, depending on the amount you want to save per year, over several years, or over a specific period. We can achieve these savings goals by packing a lunch for work. Plus, the meal can be healthier and more balanced, helping you stay in shape or lose weight, if you need to. You can also make your own coffee and take it to work. Learn to cook those dishes you enjoy at restaurants.

Budget

Establish a budget and try to stay disciplined with it helps us save more efficiently. We should focus on spending only what we've budgeted. Avoid going to the mall when you are stressed, as this will make you more pronbe to compulsive spending.

Adjust the budget and access to money

If our budget has many expenses, we should evaluate them and see where we can cut some unnecessary or lower-priority expenses to save more money.

The money we save should be in separate account that is not easily accessible (no ATM cards, debit cards, or checks).

Home

Use energy-efficient appliancces and light bulbs and keep your thermostat at a temperature that will help you save on cooling or heating costs and improve your home's insulation.

Entertainment

Try to engage in free or low-cost entertainment activities. If you have to eat out at a restaurant, avoid ordering sodas, juices, teas, smoothies, etc., and instead, order filtered water from the restaurant.

Tips for savings on supermarket grocery shopping

a. Prepare a shopping list before going to the supermarket to avoid buying unnecessary items.

b. Purchase items that can be stored or frozen, and you can save by getting a volume discount.

c. Take advantage of supermarkets that match competitors' prices to get the best price for the items you buy. If you have time, compare prices on items you need at several supermarkets.

d. Obtain discount coupons from manufacturers.

e. Follow your shopping list and search the supermarket for the item you want at the best price and with the desired features. If your budget is tight, don't focus on name brands, as there may be generic brands with comparable quality.

f. Buy seasonal vegetables or fruits.

g. Grow your own vegetables, greens and fruits.

h. Purchase non-perishable products in bulk that you can store.

Purchases in general

Buy items or merchandise, such as clothing, household goods, etc., out of season. For example, purchase Christmas items, winter items, when the season ends, that is January of the following year.

Use of credit cards and debt

If you don't have the money to buy something, don't use a credit card unless it's an emergency or necessity. If you use a credit card, make sure you have the money to pay off the balance within the next few months.

In the case of case of interest-free financing for a specific period, pay your bills on time and avoid late fees, penalties or interest.

Lifestyle

Adopt a minimalist lifestyle may help. Have only the bare minimum and focus on the non-monetary aspects, the essentials of living. Detach yourself from material things. Don't seek fulfillment or happiness in them. Your home will have more harmony and order.

These are some savings tips that we hope will help you achieve your goal of saving, getting out of debt, and achieving greater financial well-being.

If you need additional help. Please contact us.

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