NOT SAVING? YOU ARE BROKE!!

NOT SAVING? YOU ARE BROKE!!

Lets discuss this. I believe that if you are not saving or have not saved, you are broke. Hear me out.

Guiding principles:

1. Your vision of your future determines how you spend your income of today.

The above is indicative of how you want that future to be like. What kind of life do you want for yourself,spouse, children, and the kind of impact you want to make in the life of everyone connected to you.

For example, I will ask myself, now: What kind of retirement do I want for myself in the future, and how much can I live on in retirement?

2. The pot of gold I have now has to be kept in 3 parts, for present and future use.

a)Ordinary saving. This is the saving I put aside on a constant basis, no matter how small this is, I set it apart. I call this smiley pot.

b)Emergency saving. This is what I put aside for eventuality. What I use when I am called to make a payment for emergencies. I call this honour pot!

c)My investment saving. I call this my risk pot. I use what is in this pot to take 'risks'. It goes into any dealings I want to invest in, to increase my capital base. Note I don't go into foolish investment or too high risk investment.

I advise that the level of the 3 above must be at your discretion and yet based on the capacity you have and what you want your future to be.

The above 3 principles then attract the next 3 principles:

4. Never borrow when you can tough it out. Debt is a killer of prosperity! If you already in debt, fashion out ways to pay it off.

This is not a lesson on how to pay off your debts. There are many books that deal with this.

5. What you don't spend, is not spent! savings account don't 'eat money'

My mum taught me this whilst growing up.Do not waste money on stuff you cant justify as a need. Wasting your money on the 'want of life' will make you 'wanted' by creditors! Stuff like holidays, designer clothes, Hire Purchase, on cars and other stuff wont let your savings add up. You don't need them if you cant afford them.

6. Money doesn't fall from the heavens. You have to work for it. The more you want, the more you work. Increased income comes by increased thinking. Great ideas have come from little thoughts. Take advantage of your power of positive thinking and put that idea to work.

Conclusion:

If you don't have savings as above, either in the smiley pot, honour pot and risk pot, when you run out of that income(you can run out by losing your job through sack, illness, or retirement. If any of these happen, what do you have left? Nothing.You are broke. 

May you never be broke. Start saving now.