A strong saving culture and financial responsibility are key to a better tomorrow. Most people know these words by heart but have scanty knowledge on how to go about building their wealth and attaining the ultimate financial freedom. Wealth is defined not just as the riches that one has but the amount that can be able to sustain you after your job is lost or income stops flowing. As much as savings is a topic that is becoming a cliché, I would like to bring it into a new light. Research has shown that countries with a high savings rate can withstand financial shocks and channel more funds toward the critical sectors of the economy.
Georges Clason’s book, the richest man in Babylon, he states a law of wealth that I find very relevant today that he who does not spend all his money but keeps a certain amount of it gold comes more easily to him unlike he who spends all his income does gold avoid. Similarly, Warren Buffet says “always pay yourself first.” The percentage of savings is a variable but it should not be less than 10% of all your income. In my opinion, saving is an intentional discipline. Information on hidden rules about the social classes’ notes that the poor people think that money is to be spent, the middle class thinks money is to be managed and the rich think that money should be invested. Human wants are insatiable, we can discipline ourselves to utilize the 90% to meet our needs effectively once we have developed this culture it will no longer be a strain and we will not lack anything we used to have before we started saving.
Budgeting for your finances helps you find loopholes where your money is leaking. Budget for all your expenses and strictly stick to it as it will help you control your expenditures and be more financially responsible. Savings should not be buried underground rather they ought to be multiplied. You can choose to save in financial institutions such as banks and SACCOs. When saving, remember that you save where your principal amount is safe, reclaimable, and earning a good interest for you. Finally, only take advice from people who are experienced in handling money, do not experiment with your treasure. I believe a man’s wealth is not in the purse he carries think about that.