Principle of savings

Saving is one of mankind’s earliest survival strategy, yet many people go about today believing wrongly that they can survive go through life without.

If a farmer consumes all the farm produce, there will be nothing left for the rest of us and their will be no seeds for next planting season.

Friend, you can’t go through life consuming all you produce. George S, Clason in his book – The Richest Man in Babylon- says “saving is the first step leading to the temple of wealth, and no man may climb who cannot plant his feet firmly upon the first step” He advices “ I find the road to wealth when I decided that a part of all I earned was mine to keep. “Every gold piece (Naira) you save is a slave to work for you”.

Inspite of these golden advice save, many people find it difficult to save and have reasons for not doing so. Excuses people give for not saving: There is nothing left to save It’s hard to make ends meet these days Me save money? There is barely enough till the end of the month.

The cost of living is too high My wife spends all I save Because of inflation, I’d rather spend my money now than save, etc. What are your reasons for not saving? It must be emphasized that unless you accord saving the highest priority you cannot save. It is always possible to spend all income. Please note that if you spend more than you make, you are spending your future income.

 

If you don’t provide for your own emergencies, who will? Few Myths that prevent saving Myth1 I want to start saving with a large sum of money. The truth If you are waiting to have a large amount of money to start saving you may never start.

Start saving with N20 a day or N100 a day if that is all you can afford. Little drops of water make a mighty ocean. Myth2 I shall start saving after my next increment, bonus or promotion The truth The expenses rise to meet income. If you don’t apply discipline to save at your present level, when the income increases, you may not save.

Albert Einstein states: “The magic of compound interest is the eight wonder of the world” Examples: Saving N20 a day for 20 years at an average rate of 20% P.a will yield N1.9 million If at age 25 you start saving N1 a day, you will accumulate N2 million by age 70 at an average rate of 15% per annum.

Save regularly at least 10% of your income … Save and you shall be saved” Micheal Stolpher James E. Stowers says” Consider every month a loss unless you have save a portion of your income. where can we get money to invest The most profitable source of money ‘for investment is saving.

Most people unfortunately don’t bother to save for the raining day. Anyone that has desire to make money and be wealthy must engage in this three activities; working, saving and investing.

The day you begin to practice the three together is the day you begin your journey from financial slavery and poverty to financial freedom and wealth building.

 

Bill Gate of Microsoft made his money from computer business but multiplied it through investment in stocks, bonds and other financial instruments. You can also start to build your own wealth.

To do this. You have to begin set aside at least 10% of your weekly or monthly incomes for investment that will yield dividend and give you capital appreciation.

Dave Ule in his book (How to make over N64 million investing in stocks) states that “Every Naira you spend doesn’t. Every Naira you save and invest shortens the time between today and the day you reach the winner circle. Every enduring, financial fortune is built on foundation saving.”