You know when you hear something, and think ‘OMG’ that is such a great metaphor… Well that happened to me today, and got me thinking about certain milestones or ‘save points’ in Personal Finance.
So let me explain. If life were a video game, you know how most games have a ‘save point’. That even if you stumble you generally don’t go all the way back to the start, you restart at the last save point.
This leads me to the metaphor.
In personal finance goals, there are ‘save points’ or things that once you reach that milestone you generally can avoid, starting back at the start.
For example, buying your first home. Provided you can still service the loan, you always have a house to live in. And this save point actually has the potential to grow/inflate, meaning you actually gain mileage.
Now this doesn’t hold up 100% of the time, as we all know all types of assets can go up or down in value. But was an interesting metaphor that really hit me this morning.
My own personal ‘Save Point’
Now I don’t own any property at the moment, so I am yet to hit that Save Point.
But I have finally managed to pay off all my credit card debts. It has taken me almost 10 years to ‘break the cycle’, aka my addiction to credit cards. And it finally happened about a year ago. Now that I am ‘free’, I am using that monthly repayments to save and invest instead.
Technically, I don’t see the money – but it is now going towards building for the future, instead of paying off the past.
And this is a little milestone or save point, to where I will not intentionally go back all the way to the start. I have learned the lessons I needed to, and fought like crazy to get out from underneath it.
Onto the next ‘Save Point’
The overall journey to Financial Independence is a long and winding one. And for most of us it will take decades to reach, if we are fortunate enough to get there at all.
At the moment, for me that includes a current focus on building up my ‘rainy day’ fund and start the habit of regularly investing.
Now it is on to the next ‘level’ and the next ‘save point’ to Financial Independence for me.