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The Piggy Bank and the Path to Financial Freedom
"... - Dad, but what am I going to do with a piggy bank...?"
Those were the words that came out of my 10-year-old mouth. I didn't think much about money as a child. But, I knew that to have things, I needed it. The first time I felt the lack of it was when my friends invited me to play soccer on a court, and I didn't have R$1. It was a sad day... but it marked me. From that day on, I would always have my own money. I did everything a 10-year-old could do…
I bought milk for my grandmother and kept the change. I helped my neighbor weed their garden. I collected the coins my grandfather occasionally gave us. I bought a pack of candy and sold it to my friends during vacation. I took out the trash, made my bed, and got good grades in exchange for at least R$0.10.
Finally, after a sweaty vacation and months of effort, my piggy bank was half full. It was very cool to "feel" the weight of my effort. From there, I got excited and started saving more and more, always with the help of my cousin and faithful squire! We did this the following year, and at Christmas, we had filled two piggy banks. We talked and decided to open and count them.
To my surprise, my cousin had saved almost twice as much as I had. But how could that be if the piggy banks weighed almost the same? From that day on, I learned two lessons:
The weight of the piggy bank didn't matter. Each coin had different values. My cousin saved many R$1 and R$0.50 coins, while I had coins of all values inside.
The second lesson came later... my dad went to deposit my money into my savings account that he had opened for me at the bank. And, to my surprise, I discovered that he hadn't deposited anything... lol. He said he used it to pay for our apartment. (It's okay, Dad!)
From that episode onwards, for the next two years, I could only think of one thing: That feeling of having money and being able to use it however I wanted was good. And immediately, a great desire was born in me… NEVER HAVING TO ASK MY DAD FOR MONEY AGAIN!
The world has turned, and I will share my experiences with you little by little. But the seed was planted back then. The habit of saving came when I was a child, and it remains to this day. Let's study more about it;
According to Wikipedia:
"Saving is the portion of income or wealth that is not spent or consumed in the period in which it is received and, consequently, is saved1 to be used in the future."
However, in a world bombarded by advertisements and offers, how can we resist the temptation to save for the future? Once, a colleague told me: "...Man, I don't know how you manage to save money. I feel like I have to live, and I end up spending it...". I don't think there's anything wrong with that thinking. Every human being is free to make their own choices, but each one will carry a weight. Saving is like accumulating deposits for the future. (Our good and wise old man from Omaha already said that.)
By definition, if you aspire to create future prosperity, you need to have a good savings rate. If the money we use today didn't have any kind of inflation, it would be enough for the common citizen to just save. Because in a perfect world, "without inflation and dubious political decisions," your purchasing power would remain intact. And your saved money could be used to invest in: yourself, your family, and your work. However, the world is not perfect, and that's not how it works.
However, whatever happens, if we want a brighter future without having to rely on anything, we need to keep an eye on this metric. Retiring is difficult (if not impossible), living as an employee doesn't cover the monthly bills, and relying on political or divine decisions (because of your beautiful brown eyes) is also not an option. What you have left is to prepare yourself. Because your savings rate will determine the quality and quantity of your investment contributions.
Forget that "coach" talk from people who have never washed a dish. Not that I am better or worse than them for having done it, but I've been from luxury to little and vice versa. I know what I'm saying from experience. I've been there, and it's not good. Know that in the end, we all only have two assets: time and energy. And it is with these assets that you can make
money, which only comes in third place here. Therefore, focus on yourself, on increasing your salary, and on maintaining a modest cost of living. Invest rationally and logically, accumulating receipts for the future ("saving"). You can reap far more rewards than you ever imagined.
But how do we do this? No one needs to go to college to learn how to save money. No one needs to spend hours on YouTube to discover miraculous saving techniques. And don't even buy a course. Forget about it! Focus on doing the simple things well. Gain understanding and precision about yourself. But if I had to recommend something to study, I would recommend "The Richest Man in Babylon" and that's it. Nothing else is needed. At first, think that you need to take out 10% every month and put it in a savings account where you don't have access and wait until you accumulate more balance and can use this money on an idea.
The Baker's Manual:
*1 - Understand the importance of saving.
*2 - For everything you earn, save at least 10%, invest it, and forget about this money.
*3 - If you earn R$1500 a month, think that you only have R$1350, and live with that.
*4 - Did you do extra work and earn R$100? "Lie, you only earned R$90."
*5 - Force your mind to understand that now you are a saver.
But... don't be stingy. Be kind to yourself. Live well with the 90% that's left. Eat, drink, and live the best way possible with the money you have left.
In summary, your focus should be on developing yourself and keeping an eye on your savings rate.
Because it will dictate your pace of growth. It's not rocket science. It's just the basics done well. When you feel safe and comfortable, start increasing your savings rate year by year. From 10% to 15% and so on. You decide what is best for you.
"... - Dad, but what am I going to do with a piggy bank...?"
Those were the words that came out of my 10-year-old mouth. I didn't think much about money as a child. But, I knew that to have things, I needed it. The first time I felt the lack of it was when my friends invited me to play soccer on a court, and I didn't have R$1. It was a sad day... but it marked me. From that day on, I would always have my own money. I did everything a 10-year-old could do…
I bought milk for my grandmother and kept the change. I helped my neighbor weed their garden. I collected the coins my grandfather occasionally gave us. I bought a pack of candy and sold it to my friends during vacation. I took out the trash, made my bed, and got good grades in exchange for at least R$0.10.
Finally, after a sweaty vacation and months of effort, my piggy bank was half full. It was very cool to "feel" the weight of my effort. From there, I got excited and started saving more and more, always with the help of my cousin and faithful squire! We did this the following year, and at Christmas, we had filled two piggy banks. We talked and decided to open and count them.
To my surprise, my cousin had saved almost twice as much as I had. But how could that be if the piggy banks weighed almost the same? From that day on, I learned two lessons:
The weight of the piggy bank didn't matter. Each coin had different values. My cousin saved many R$1 and R$0.50 coins, while I had coins of all values inside.
The second lesson came later... my dad went to deposit my money into my savings account that he had opened for me at the bank. And, to my surprise, I discovered that he hadn't deposited anything... lol. He said he used it to pay for our apartment. (It's okay, Dad!)
From that episode onwards, for the next two years, I could only think of one thing: That feeling of having money and being able to use it however I wanted was good. And immediately, a great desire was born in me… NEVER HAVING TO ASK MY DAD FOR MONEY AGAIN!
The world has turned, and I will share my experiences with you little by little. But the seed was planted back then. The habit of saving came when I was a child, and it remains to this day. Let's study more about it;
According to Wikipedia:
"Saving is the portion of income or wealth that is not spent or consumed in the period in which it is received and, consequently, is saved1 to be used in the future."
However, in a world bombarded by advertisements and offers, how can we resist the temptation to save for the future? Once, a colleague told me: "...Man, I don't know how you manage to save money. I feel like I have to live, and I end up spending it...". I don't think there's anything wrong with that thinking. Every human being is free to make their own choices, but each one will carry a weight. Saving is like accumulating deposits for the future. (Our good and wise old man from Omaha already said that.)
By definition, if you aspire to create future prosperity, you need to have a good savings rate. If the money we use today didn't have any kind of inflation, it would be enough for the common citizen to just save. Because in a perfect world, "without inflation and dubious political decisions," your purchasing power would remain intact. And your saved money could be used to invest in: yourself, your family, and your work. However, the world is not perfect, and that's not how it works.
However, whatever happens, if we want a brighter future without having to rely on anything, we need to keep an eye on this metric. Retiring is difficult (if not impossible), living as an employee doesn't cover the monthly bills, and relying on political or divine decisions (because of your beautiful brown eyes) is also not an option. What you have left is to prepare yourself. Because your savings rate will determine the quality and quantity of your investment contributions.
Forget that "coach" talk from people who have never washed a dish. Not that I am better or worse than them for having done it, but I've been from luxury to little and vice versa. I know what I'm saying from experience. I've been there, and it's not good. Know that in the end, we all only have two assets: time and energy. And it is with these assets that you can make
money, which only comes in third place here. Therefore, focus on yourself, on increasing your salary, and on maintaining a modest cost of living. Invest rationally and logically, accumulating receipts for the future ("saving"). You can reap far more rewards than you ever imagined.
But how do we do this? No one needs to go to college to learn how to save money. No one needs to spend hours on YouTube to discover miraculous saving techniques. And don't even buy a course. Forget about it! Focus on doing the simple things well. Gain understanding and precision about yourself. But if I had to recommend something to study, I would recommend "The Richest Man in Babylon" and that's it. Nothing else is needed. At first, think that you need to take out 10% every month and put it in a savings account where you don't have access and wait until you accumulate more balance and can use this money on an idea.
The Baker's Manual:
*1 - Understand the importance of saving.
*2 - For everything you earn, save at least 10%, invest it, and forget about this money.
*3 - If you earn R$1500 a month, think that you only have R$1350, and live with that.
*4 - Did you do extra work and earn R$100? "Lie, you only earned R$90."
*5 - Force your mind to understand that now you are a saver.
But... don't be stingy. Be kind to yourself. Live well with the 90% that's left. Eat, drink, and live the best way possible with the money you have left.
In summary, your focus should be on developing yourself and keeping an eye on your savings rate.
Because it will dictate your pace of growth. It's not rocket science. It's just the basics done well. When you feel safe and comfortable, start increasing your savings rate year by year. From 10% to 15% and so on. You decide what is best for you.