Today, I ran into an old neighbor at the transit station near my college. He was on the phone, arguing about a payment plan for the building I still live in.
When he got off the phone he explained to me that because he had his cat, he owed money for carpet replacement in the building and was on a payment plan for $800.
He has expressed regret about leaving our current location in past conversations, because the location is ideal, especially for people who rely on public transportation, like us. Despite him at times suggesting that I leave the place too.
For me I knew that staying was the best decision, ( even if it’s not ideal at times due to environmental factors such as other tenant behaviors), because the rent is reasonable and right now it’s the best situation for me no matter the emotions at times. You can’t always allow your emotions to lead your choices.
The Importance of Financial Planning
During the pandemic I remember when a great deal of us in the building received stimulus checks due to our low income. I warned him to save the money, but he often invited me out, along with others wanting to spend it. I often declined and told him I preferred to save mine and while he claimed in response that he was saving too, I knew he was frequently going out to eat and doing things that depleted his funds.
Once, when I was taking out the trash, I saw a new Xbox Series X console box in the recycling bin, knowing that someone had used their stimulus check to buy it. Many tenants were spending their stimulus checks left and right, including my old neighbor.
Not long after, he was back to asking to borrow $5 for laundry. Other tenants were on the sidewalk, literally counting change. Some were back to asking others for money for multiple reasons.
Years later, here he is, struggling with an $800 payment plan that affects his ability to get an apartment back in his ideal location. The collection agency won’t work with him on documentation until the payment plan is completed.
This situation is a stark reminder that saving money for the future is crucial. You can’t think, “I might not need it tomorrow, so why save?” because there’s a high likelihood that you will need it. Your financial stability tomorrow depends on the actions you take today.
Saving vs. Spending: A Long-Term Perspective
Every choice adds up over time. If my neighbor had saved his several stimulus checks, he wouldn’t be struggling with this $800 payment plan and would have a better chance of moving back to our location.
Similarly, I remember a friend who received her tax refund and spent it on an engagement ring for her fiancé, even though they weren’t in a position to get married and still aren’t, there have been problems.
Soon after, she faced financial problems again. Many people don’t realize that their decisions today can affect their future. Saving isn’t just about the next day or month but preparing for unexpected expenses in the distant future.
I once read that we are the sum of our choices, and where we are today is often (excluding events through no fault of our own) because of the choices we made in the past. This is true in many aspects of life.
The Value of Saving for Tomorrow
Over the years, I’ve been fortunate enough to see my accounts grow, albeit modestly, as I’m still low income and don’t have much money to save. I only spend when necessary and understand the privilege of not having to touch my savings frequently.
However, I have had to dip into my savings before, and I’ve written about those experiences on this blog. My financial growth isn’t just sheer luck.
While others enjoyed their Starbucks coffee, even if I wanted one, I refrained and put $5 towards Starbucks stock instead. When others went out to eat, I was saving and investing, knowing it would add up over time. I still do this even as a student.
Seeing people spend $25 on a meal made me think about how that $25 could partially buy Coca-Cola stock or be added to my savings. I’ve been in situations where having even $3 would have made a significant difference, where just a quarter could have changed my day.
Coming from such experiences, I understand the importance of saving and investing. Whenever I lose sight of my financial goals, I recall those tough times, because just an extra dollar or two can be the difference between getting by and going without.
Appreciate Every Dollar That Comes Into Your Life
I understand that when you get lump sums or windfalls, whether from a Pell grant, stimulus check, or tax refund, it’s tempting to spend it on things you want rather than bills. However, it’s crucial to consider saving that money.
Having savings means that next time an emergency arises, you won’t have to rely on payday loans, borrow from family or neighbors, or stress about it to the point it affects your health.
My personal accounts have grown into the thousands, but just the other day, I looked at my private investment fund, which I started from scratch, and it currently has $338 AUM.
For a while, this seemed small and insignificant , but then I realized that five, seven, or eight years ago, $338 would have been a lot of money to me. I would have been thrilled to see that amount in one of my accounts.
It’s essential to appreciate every dollar, no matter how big or small, and understand its value today and tomorrow. Whether you find it on the ground, earn it, or receive it as a gift, appreciate every cent and dollar just the same. Don’t be quick to let it slip through your hands because it could make a significant difference in a year when you need it the most.
The Broke College Student 
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