When you are in the storm of your youth, financial wisdom is far down the list of concerns greater than the newest gadget, a vacation, or even sometimes impulsive shopping sprees. One of the key things I could ever tell myself, if able, would be this: save more than you think you need. It’s that rather simple yet powerful piece of advice that may make the difference between financial freedom, peace of mind, and weathering life’s inevitable storms.

Why Save More? What is meant by saving is grossly misconceived in the prime of life. When young, it is easy to think that all of life lies ahead to build wealth, and immediate wants tend to override the distant future. But life is always uncertain.

As Warren Buffett wisely said, “Do not save what is left after spending, but spend what is left after saving.” This discipline of setting aside more than we might think we would need allows for flexibility, freedom, and even security in times of uncertainty.

The Ant and the Grasshopper

One fable that is timeless in teaching the value of saving is the Ant and the Grasshopper. In the classic fable, the ant toils during the summer, always finding a means to store food for the winter, while the grasshopper enjoys playing and living in the moment—most of them completely disregarding the future. When winter finally sets in, the grasshoppers are left starving while the ant lives comfortably.

This may sound like a simple story, but it really mirrors one of the real basic truths in life. We go through seasons in our lives: education, careers, relationships, and winter will come in the unlikeliest of emergencies, downturns, and even retirements. How well we deal with it will depend on how well we have prepared for it when times are good.
This principle of saving in India is steeped in traditional values. Most of us have grown up with our parents and grandparents advocating the importance of saving. In fact, the concept of saving gold within Indian households symbolizes the preservation of wealth and is something used during times of crisis. However, despite these cultural influences, it is rather easy to stray from such principles in the face of consumerism and modern-day pressures.

Buffer of money for shocking life events. The words of Benjamin Franklin come to mind: “Beware of little expenses. A small leak will sink a great ship.” I think of why I should have saved more when life’s emergencies show up, sometimes unannounced, medical, financial, or personal. When we don’t have a safety net, the tiniest leaks can cause destruction to our fiscal balance.

Consider the example of an old friend who was working in one of the top corporate companies in India. He drew a fat paycheck, and his lifestyle spoke volumes for the amount he earned: fine dining, international vacations, and so on. However, he never saved anything from his income. One day, an economic downturn took place, and his job was in jeopardy. Since he did not have any backup plan laid out at that moment and neither had savings, he found it very difficult to even bear the expenses of basic living.
It was a wake-up call—a sore reminder of the importance of saving more than you ever think you may need.

For an international context, one may consider the financial crisis of 2008, where millions across the world, particularly in the U.S., could not stand against sudden unemployment and collapses of the housing market. Those who had saved judiciously through the good times came out unscathed, while those who hadn’t suffered greatly.

Compound Interest: The Magic of Compounding

Another good reason to save more than you think you need is through the power of compound interest. Einstein was once quoted as saying, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” This simple but awesomely powerful concept can be life-changing when consistently applied. Just think of throwing in a little money, say, in your early 20s. Even nominal returns over decades build into big wealth. The longer you have money, the longer the amount of time it grows. Unfortunately, most of us—ten years later and wiser—finally realized the magic of compounding with a grieving heart, saying, “If only I had started saving more and sooner, I could have harnessed this force of nature to build a much bigger financial cushion by now.”

Financial freedom and peace of mind

It’s not about having millions in the bank; it’s about the freedom to your life, your time, and your choices. It is being able to walk away from jobs, taking time off to pursue some passion, or handling an emergency without stress—that is the real power of savings.
As Suze Orman, one of the most popular personal finance gurus, once said, “A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.”

One such inspiring story is that of a couple from India. They retired early by diligently saving 60% of their income for over a decade. While their friends struggled paycheck to paycheck, this couple travels around, indulges in creative projects, and volunteers in their free time. Their disciplined approach to saving more than what they thought necessary opened floodgates to a life way more free and meaningful than what their careers could give them.

The Balance between Saving and Living While saving more than you think you need is critical, it is just as important not to tip the scale too far in that direction. As Oscar Wilde said, “Living within your means but saving more than you need is wisdom; denying all joy in the pursuit of saving is folly.” Life is a balancing act. The key to life is to have a meaningful existence today while securing your tomorrow.

Conclusion: A Lesson in Abundance

I would say to that younger version of me: save more than you may ever think of, since life is a box of surprises, opportunities galore, and it’s only from financial security that peace of mind can derive. Laying just this foundation of a saving habit with constancy early on will not only secure your future but will also shape in better avenues for freedom and growth on your way forward. Remember, as goes the Indian proverb: “Money saved is money earned.” So, start saving now—you’ll thank your self later.

Learn more about how to become a Top Performer at: ORL Leadership Summit 2024.

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Dr. Prahlada N.B
MBBS (JJMMC), MS (PGIMER, Chandigarh). 
MBA (BITS, Pilani), MHA, 
Executive Programme in Strategic Management (IIM, Lucknow)
Senior Management Programme in Healthcare Management (IIM, Kozhikode)
Postgraduate Certificate in Technology Leadership and Innovation (MIT, USA)
Advanced Certificate in AI for Digital Health and Imaging Program (IISc, Bengaluru). 

Senior Professor and former Head, 
Department of ENT-Head & Neck Surgery, Skull Base Surgery, Cochlear Implant Surgery. 
Basaveshwara Medical College & Hospital, Chitradurga, Karnataka, India. 

My Vision: I don’t want to be a genius.  I want to be a person with a bundle of experience. 

My Mission: Help others achieve their life’s objectives in my presence or absence!

My Values:  Creating value for others. 

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