Have you ever imagined your tomorrow’s success, wealth and riches, you riding that immense car or living in your own mansion or owning a big multinational organisation? Well, these are good imaginations; however, your tomorrow’s success starts today. Your vision is the determinant of your mission so if you want to be successful, wealthy or rich tomorrow, you need to start working towards it from today. Don’t ever think the monthly salary you earn or will earn will be enough to achieve those great dreams you have. What is the secret of the rich? INVESTMENT! Investing rightly and wisely! Investment is the purchase of a financial product or other item of value with an expectation of favourable returns. It is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price. In general terms, investment means the use of money in the hope of making more money.
Well, investment starts with saving i.e. saving money. It may happen few times but nobody might give you a lump sum of money of which you can invest to bring forth favourable returns. Even at that, if you don’t learn the habit of saving to invest now, when the money comes suddenly, it will leave suddenly. Saving money is a way of collecting and storing wealth, much like owning a land, a home or jewellery. As teens, you may feel there’s no need to save after all you can always ask your parents for money anytime you need it, but then if you don’t cultivate the habit of saving now, you will find it difficult to cultivate it later. Also, as youths and young adults, you may feel you don’t receive or earn enough for you to save out of it, but then you can’t guarantee that you will be able to save when you earn more because your expenses will definitely increase. Therefore, it is better you cultivate the habit of saving now before you have too many obligations on you.
The golden rule of saving is to save at least 10% of any income or money given to you. It may seem little but then little drops of water make a mighty ocean. Do not worry about having a fortune now; the currency amount is not as important as the habit of saving.
Now, saving really comes with discipline because it is very easy to dip your hands into your savings. Therefore to truly save, you must discipline yourself not to spend your savings for any reason. I advise that you don’t keep your savings within your easy reach. You can deposit it into a bank account (if possible) specially opened for this purpose or you can keep it with someone you can really trust. This will reduce the chances of you easily spending your savings. The road to wealth is found when you decide to strictly keep a part of what you receive.
Remember, in life, it is not how much money you make; it is how much money you can keep. HAPPY SAVING!
Originally posted on February 19th 2018 on www.thefinancialliterate.wordpress.com (A previous version of The Financial Literate blog)