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Tag: advantages of soft saving

  • Soft Saving | A New Trend for the Young and the Restless

    Soft Saving | A New Trend for the Young and the Restless

    KEY POINTS
    > Soft saving is a term that describes a flexible and relaxed approach to saving money.
    > The benefits of soft saving are living a more balanced and fulfilled life, avoidance of burnout and depression, becoming creative and productive, and being flexible and adaptable
    > To start soft saving, we can define our values, set up realistic goals, find ways to save money according to our preference, and constant adjustment of saving habits.
    > The risk of soft saving is it requires more time to save for retirement.

    Are you tired of the hustle culture that tells you to work hard, save more, and retire early? Do you feel like you are missing out on the joys of life while chasing after financial goals that seem unreachable? If you answered yes to any of these questions, you might be interested in a new trend that is emerging among young people: soft saving.

    Preparing for the future by saving and having investments is a common approach that many financial gurus have been advocating in our current time. This approach tells us to set aside a portion of our income so have enough money that will support our lifestyle when we retire. In effect, while focusing on the future is a good thing, it creates a present wherein we are stressed and depressed as we do not get to experience now the leisures that our hard work brings.

    Here comes soft saving that maybe the answer to YOLO, FOMO and FIRE.

    What is Soft Saving?

    Soft saving is a term that describes a flexible and relaxed approach to saving money. It is based on the idea that you can enjoy the present without sacrificing your future. Soft saving does not mean that you stop saving altogether, but rather that you save according to your personal values and priorities.

    This approach means we get to enjoy the fruit of our labor now and still prepare for the future. It meets the concept of YOLO and FOMO however, FIRE might be a little further down the road as this would not make us retire early.

    Soft saving is different from traditional saving methods, such as budgeting, investing, or following the 50/30/20 rule. These methods often require strict discipline, sacrifice, and long-term planning. They can also cause stress, anxiety, and guilt if you fail to meet your targets or face unexpected expenses.

    The stress of thinking only about the future creates a depression in the current moment as we are not able to gratify ourselves. Our reality is that we need instant gratification. No one can deny that. By denying ourselves of that, we get hurt and live unhappy lives.

    Soft saving, on the other hand, allows you to save money in a way that suits your lifestyle and preferences. You can decide how much, how often, and where to save. You can also adjust your saving habits depending on your circumstances and goals. For example, you might save more when you have extra income or less when you want to splurge on something special.

    Additionally, living our lives the way we want to without sacrificing our future would benefit us. We remove the worries of the future and still enjoy our lives now by spending on what matters to us.

    The Benefits of Soft Saving

    Soft saving has many benefits for your mental and emotional well-being. Here are some of them:

    You can live a more balanced and fulfilling life. Soft saving lets you enjoy the things that make you happy, such as traveling, hobbies, or experiences. You can also spend more time with your loved ones and friends. By doing so, you can improve your mood, health, and relationships.

    You can avoid burnout and depression. Soft saving helps you avoid the pressure and exhaustion that come with working too hard and saving too much. You can also avoid the feelings of hopelessness and despair that come with not having enough money or not achieving your financial goals.

      You can be more creative and productive. Soft saving stimulates your creativity and curiosity by exposing you to new things and opportunities. You can also learn new skills and gain new knowledge that can help you in your career or personal growth.

      You can be more flexible and adaptable. Soft saving prepares you for the uncertainties and changes that life brings. You can cope better with unexpected events, such as emergencies, job loss, or health issues. You can also take advantage of new opportunities, such as promotions, investments, or business ventures.

        How to Start Soft Saving

        If you are interested in soft saving, here are some tips to help you get started.

        Define your values and priorities. Think about what matters most to you in life and what makes you happy. These could be things like family, health, education, travel, or charity. Then, allocate your money accordingly.

        Set realistic and meaningful goals. Instead of focusing on numbers or percentages, focus on outcomes or experiences. For example, instead of saying “I want to save $10,000 this year”, say “I want to save enough money to go on a vacation with my partner”. This way, you can motivate yourself more and track your progress better.

        Find ways to save money that suit your personality and preferences. There are many ways to save money without compromising your quality of life. For example, you can use apps or tools that automate your savings, such as Acorns or Digit. You can also use coupons or discounts to save on your purchases, such as Honey or Rakuten. You can also use creative ways to save money, such as selling your stuff online, renting out your space, or joining a savings challenge.

          Review and adjust your saving habits regularly. As your life changes, so do your needs and wants. Therefore, it is important to review your saving habits from time to time and make adjustments as needed. For example, you might want to save more if you have a big expense coming up or save less if you have achieved a goal or received a windfall.

            The risk of soft saving

            This approach is not for everyone. Depending on our personal situations and circumstances, applying soft saving may be either detrimental or beneficial for us.

            By saving a little, it would only mean that it would require more time to hit our financial goals for retirement. We may enjoy the results of our daily grind right now but it may also endanger our future It may result to working longer in our lifetime instead of retiring early.

            Although, we can also think of working till our last breath, not retiring, but in a different line of work that has less stress than our current jobs now. Since we have saved, our future selves may benefit more in just living a life of working what we want to do without the worry of money above our heads.

            Conclusion

            Soft saving is a new trend that challenges the conventional wisdom of saving money. It is a flexible and relaxed approach that allows you to enjoy the present without sacrificing your future. Soft saving has many benefits for your mental and emotional well-being, such as living a more balanced and fulfilling life, avoiding burnout and depression, being more creative and productive, and being more flexible and adaptable.

            If you want to try soft saving, you need to define your values and priorities, set realistic and meaningful goals, find ways to save money that suit your personality and preferences, and review and adjust your saving habits regularly.

            Soft saving is not for everyone. Some people might prefer a more structured and disciplined way of saving money. However, if you are looking for a way to save money that is more fun and less stressful, soft saving might be the right choice for you.

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