INTRODUCTION
Savings is the act of putting aside, for some time certain portion or percentage of your income to either buy an item, prepare for some unexpected expenses, or for investment purposes. For the purpose of this write-up, we would be considering savings for investment purposes.
Most people would advise you to save up to 10% of your income, but taking a look at the biblical story of Joseph in Egypt, where he saved one fifth or 20% in the year of abundant, which was their saving grace in the year of famine. I believe there is a divine wisdom in paying yourself 20% of your income, if you can afford it.
WHY SHOULD YOU SAVE
Some people believe that their income is too small, and not sufficient to meet all their basic needs, so they use this as a reason not to save. This shows that they do not understand the commandment, you shall love your neighbour as yourself, and not you shall love your neighbour more than yourself.
Whenever you spend money, you are paying someone else, rent your landlord, transport fair the owner of the means of transport, school fees the proprietor and buying food or cloths the retailer. As you continue to do this, you are helping all those you paid financially, but when you spend all your income, you are not helping yourself. It is the little that you pay yourself by saving, that would empower you (enable) to take advantage of opportunities, when it comes.
It is the first step out of poverty and rat race. Many people believe that the first step to wealth is getting a good job or starting a good business. But what has been discovered overtime is that your expenses and taste will increase as your income increases, so the only way out is for you to put a certain portion of your income aside for investment purpose.
Do you know that a seed in your hands today can become a tree tomorrow, and a tree a forest? Likewise that small amount of money with you today has the potential of becoming millions and billions if, it is allowed to grow and multiply with time.
SAVINGS TO POVERTY
In as much that it is good to save, make sure that it does not exceed six month before you put it to productive use, if not, the effect of inflation would reduce the economic value of your savings. No matter how small your savings is, find something to invest in. All savings that are not made for investment purpose cannot empower you to create wealth.
SAVINGS TO WEALTH
SAVINGS + GOOD AND TIMELY INFORMATION + ACTION= WEALTH
Savings itself has a spirit, the spirit of being sensitive to investment opportunities. As you begin to save, you should become more interested in what in the stock market, real estate and so many other opportunities offline and on the Internet.
Seek for information, subscribe to some financial journals or site on stock, to get updated information on investment opportunities, and when necessary please be prepared paid for such information, proverb 4:7 Wisdom is supreme, therefore get wisdom, though it cost all you have, get understanding. As you begin to gather and analyses information on difference investment opportunities, you will discover that there are some, in which you could start small, like buying into penny stock.
Please do not wait until you have about half of your monthly income, before you invest, start small. Continue to do this and watch your investment grow and grow, until it turns into a well, where you can always draw from.
CONCLUSION
Your real net-worth is the excess of what the economy gives you ( Cash inflow, income) over what you gave back to the economy (Cash outflow, expenses), within a particular period. This is your real value, what you have been able to save.
Savings is the act of putting aside, for some time certain portion or percentage of your income to either buy an item, prepare for some unexpected expenses, or for investment purposes. For the purpose of this write-up, we would be considering savings for investment purposes.
Most people would advise you to save up to 10% of your income, but taking a look at the biblical story of Joseph in Egypt, where he saved one fifth or 20% in the year of abundant, which was their saving grace in the year of famine. I believe there is a divine wisdom in paying yourself 20% of your income, if you can afford it.
WHY SHOULD YOU SAVE
Some people believe that their income is too small, and not sufficient to meet all their basic needs, so they use this as a reason not to save. This shows that they do not understand the commandment, you shall love your neighbour as yourself, and not you shall love your neighbour more than yourself.
Whenever you spend money, you are paying someone else, rent your landlord, transport fair the owner of the means of transport, school fees the proprietor and buying food or cloths the retailer. As you continue to do this, you are helping all those you paid financially, but when you spend all your income, you are not helping yourself. It is the little that you pay yourself by saving, that would empower you (enable) to take advantage of opportunities, when it comes.
It is the first step out of poverty and rat race. Many people believe that the first step to wealth is getting a good job or starting a good business. But what has been discovered overtime is that your expenses and taste will increase as your income increases, so the only way out is for you to put a certain portion of your income aside for investment purpose.
Do you know that a seed in your hands today can become a tree tomorrow, and a tree a forest? Likewise that small amount of money with you today has the potential of becoming millions and billions if, it is allowed to grow and multiply with time.
SAVINGS TO POVERTY
In as much that it is good to save, make sure that it does not exceed six month before you put it to productive use, if not, the effect of inflation would reduce the economic value of your savings. No matter how small your savings is, find something to invest in. All savings that are not made for investment purpose cannot empower you to create wealth.
SAVINGS TO WEALTH
SAVINGS + GOOD AND TIMELY INFORMATION + ACTION= WEALTH
Savings itself has a spirit, the spirit of being sensitive to investment opportunities. As you begin to save, you should become more interested in what in the stock market, real estate and so many other opportunities offline and on the Internet.
Seek for information, subscribe to some financial journals or site on stock, to get updated information on investment opportunities, and when necessary please be prepared paid for such information, proverb 4:7 Wisdom is supreme, therefore get wisdom, though it cost all you have, get understanding. As you begin to gather and analyses information on difference investment opportunities, you will discover that there are some, in which you could start small, like buying into penny stock.
Please do not wait until you have about half of your monthly income, before you invest, start small. Continue to do this and watch your investment grow and grow, until it turns into a well, where you can always draw from.
CONCLUSION
Your real net-worth is the excess of what the economy gives you ( Cash inflow, income) over what you gave back to the economy (Cash outflow, expenses), within a particular period. This is your real value, what you have been able to save.
Good one...
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