🏦 Why is it so important to save before spending? An essential Hong Kong financial management lesson, explained by our editor!

Many Hong Kong friends ask: Why is it so important to save before spending if we always have a zero balance at the end of the month? Does it really help us build savings and achieve our financial goals? In fact, "saving before spending" is not only a financial management skill, but also a personal safety net. This habit can help you reduce stress and happiness in life! 💡💰

🧭 What is "saving before spending"? — The first step to financial self-discipline

• "Save first, spend later" means automatically setting aside a target amount into a savings account as soon as your salary is paid, and using the remaining amount for daily consumption, entertainment, and other expenses.

• This is completely different from "saving if there is any surplus" - most people say they will save if they have any surplus at the end of the month, but they never end up saving enough.

The editor gives an example

• If you earn $20,000 a month, automatically transfer $3,000 to your savings/investment account. On the second day of your paycheck, cash out the remaining $17,000. If you persist for three years, you can save over $100,000.

🔒 Save before spending: Four local reasons and benefits

1️⃣ Establish a financial safety net to resist sudden crises

• Life in Hong Kong is stressful, with high risks in buying a house, healthcare, and unemployment. It’s important to save enough in an emergency fund for 3-6 months of expenses to stay stable in the face of any difficulties.

• Save it in advance so you can use it whenever you need it. You don’t have to rush to open your insurance policy or borrow money from friends in an emergency.

2️⃣ Having goals and a routine makes it easier to develop good habits

• "Save first, spend later" can automatically complete your savings plan every month, such as the 631 method, 333 method or 365 method, etc., and go from zero to something without feeling any pain.

• Manage your money in installments (for example, set aside one account exclusively for savings), save $2,000 a month, and $24,000 a year. Watch the progress and feel the satisfaction!

3️⃣ Resist the temptation to spend and avoid the moonlight trap

• Hong Kong is a consumer-oriented society with many discounts every day. People who don't have the habit of saving money often spend more than they can handle.

• "Saving first" means proactively reducing your available funds, forcing yourself to control your spending and reduce impulsive spending.

4️⃣ Long-term financial goals are easy to achieve and enjoy the compound interest effect

• For example, starting to save $3,000 a month a few years early and relying on compound interest to double it in 10 years is better than putting it off until you are 30 and trying to cram.

• Reviewing how much you have saved annually and quarterly will naturally enhance positive feedback and have an incentive effect.

🛑 Why can’t you get rich just by saving money?

• Hong Kong's property and commodity prices continue to rise, and most people do not have a clear budget. They save when there is something left, but end up with nothing left.

• There is always a lot of leftover money at the end of each month, which makes you feel insecure and your life plan may collapse at any moment.

Expert experience sharing

• Buffett's classic quote: "Don't save until you have something left, save until you have nothing left to spend."

🗂️ Recommended mainstream savings methods (easy for Hong Kong residents)

• 365 Savings Method : Accumulate small amounts every day, save big money throughout the year, and cultivate self-discipline.

• Method 333/Method 631 : Automatic transfer of funds at a preset ratio, with a mandatory monthly savings quota reserved.

• Automatic transfer savings method : immediately allocate money to different accounts on payday to avoid temptation.

🎯 Editor's Note: Tips for Developing a Savings Habit

1. Set clear goals (e.g. travel expenses/down payment/emergency fund)

2. Automatic transfer savings, never rely on self-control

3. Keep accounts at the beginning of the month and review them in the middle of the month. If you find that you have saved too much, give yourself a small reward.

4. Combined with zero user accounts, reduced cards and only cash, it helps you accelerate discipline

🧡 The editor summarizes three sentences

1. "If you don't save money before you pay it, you'll have nothing left at the end of the month!"

2. "Saving = giving yourself confidence for your future. Having a plan every month will make your life more stable."

3. "Only by proactively managing your income can you take control of your wealth and enjoy greater freedom!"

Start saving before spending today to give yourself a solid financial future. Develop habits, make small changes, and benefit from them for a lifetime! 💪🏦