Earlier on, an article on savings was published here, titled “It all starts with Savings” and I really emphasized the importance of saving, in light of investment. I also wrote that savings is a way of collecting and storing wealth. Savings also definitely comes with discipline and even though it is a simple popular concept, most people don’t have the mental fortitude to do so.
Different people have different scale when it comes to savings but the important thing is to develop the saving habit. There is a golden rule of 10% savings of your earnings popularized by George S. Clason, however, you can pick your scale but work at making it not less than 10% of your earnings.
Another very important thing to note is to cultivate the habit on saving on EACH income. Sometime ago, I had different sources of income and I was running a scale of 10% savings of my earnings. However, I calculated all that should be my savings on all my earnings at that time and proposed to save them all on a particular source of income I was expecting. Unfortunately, that income source delayed and was also not consistent. At the end of it all, I realized I wasn’t able to save that which I was to save at that time. At that moment, I realized the importance of saving on EACH income, not procrastinating to a future income one is still expecting or on a different income altogether.
So, when saving, to ensure an effective saving, make the savings on that particular income. Don’t merge savings of different incomes and overload them all on a particular income source. You may not be able to achieve your savings target if you do that. Save on EACH income. Happy Wise Saving!
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Originally posted on February 26th 2017 on www.thefinancialliterate.wordpress.com (A previous version of The Financial Literate)
