Savings is one of the greatest wealth Building Principles of all times.
The importance of savings when in getting rich and financial Independence is too huge.
"Pay yourself first" is the central message of the financial classic book "the richest Man in Babylon"
It submits that you should put aside money for savings from your income ever before you start any form of spending
Because, if you wait to save from the remaining amount after you finish spending, you will always have nothing left to save.
This saved money will then represent the "seed money" with which to execute your wealth building activities - mainly investing, which will ultimately bring you wealth
There is this poor trend however.
The reason why even people who save consistently still have poor financial results!
Why do people who save actively yet still have nothing to show for it after many months or years?
Answer: They have no savings Objectives.
When people have no specific goal, no objective for the money. Two things happen.
1..They will find it difficult to accumulate the money
2..They will end up spending it at anything and anyhow
They will keep going round and round saving and spending, such that the savings account just becomes an extension of their expenses account.
After years of actively saving, they will have nothing tangible to show for all those years of savings.
To guard against this Error:
A proper specific "savings goal" should be set for each saving exercise.
This goal should include 3 Things
1…PURPOSE GOAL
What exactly you want to use this money for: Specific investment, a car, a house, an occasion, a vacation, school fees etc. Have 1 specific objective for this money.
2…AMOUNT GOAL
How Much money you want to accumulate.
State exactly how much this money will reach for this goal to have been achieved.
EG: to save 2Million naira for my wedding.
3... DURATION GOAL
How long do you want to save this money for.
A goal without a deadline is only a wish,
When are you hoping to achieve the goal of accumulating this amount?
With your Amount and duration in place, you can quickly calculate how much you have to save and how frequently for you to hot your target.
EG: to save 1Million naira by November 31st 2020 for my wedding expenses,by putting away 120k monthly.
With this Strategy in place you are on your way to becoming one out of the many people who Have results from savings.
Having specific things you can point as results of your saving habit.
This is why, with a regular source of income you can save your way into riches when it is followed by Proper investing.
See you at the Top
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