Is there a proper way of saving? We all know that to save is, after we get our salary what's left is the portion we're going to keep. That's the common practice that we are doing, and would you believe it happened during ancient times.
I've read a book entitled "The Richest Man in Babylon by George S. Clason. It discussed the right way of saving your money and growing it, though it was represented as gold in the story. So to know more about it, here it is.
The Cure for a Lean Purse
1. Start thy Purse to Fattening
How you'll be able to fatten your purse? Arkad, the richest man in Babylon said that you should "Pay Yourself First". He stated that " A part of I earn is mine to keep". Every salary you'll receive, you should take first 10 percent and set aside as your savings. You'll do this before you pay anyone, This is the right formula, INCOME - SAVINGS = EXPENSES. You have to practice your comfortable ways of "Paying Yourself" and make it a habit. If you continuously apply it every Payday, when the year ends you'll be surprise that its possible and doable. You'll be able to build an emergency funds out of your savings. Start it now. Its never too late. The percentage for allocating your budget may vary depending on your preference. Example are 10 percent for tithes, 20 percent for savings and 70 percent for your living. It's up to you!
2. Control Thy Expenditures
Preparing your Budget is a necessary thing that you should always be responsible. How will you control your expenditure? It's by identifying your needs over wants. You should list all your expenses even at a very small amount to track where your money go. Some of us complains that our income is not enough but usually the problem is our lack of discipline in prioritizing our necessary expenses. You should learn the art of delayed gratification. If you cannot afford the things you wanted to buy, then let go. Don't compromise yourself to borrow, but instead plan and save to get it.
3. Make Thy Gold Multiply for a Profitable Investment
It means growing your money. Saving is not enough because as inflation rises it will just lower the purchasing power or your money. What you need to do is invest. Allow your money to begets another money. We need to learn where to park it, there are many investment vehicle to venture into. We can start a small business or learn a high-return investment like stocks, mutual funds and UITF that will gives us profit. I will discuss further about investing high-return product in the future.We cannot forever rely on our body to do the working. Time will come we'll grow old and need to rest. So we must be sure that before that time comes we already build a profitable investments that are able to provide our expenses and sustain our lifestyle.
4. Guard Thy Treasure from Loss
Nowadays, scams are increasing their number. People are very attracted to get-quick-rich scheme. Their eagerness to earn instant big amount blinds them to assess or check the credibility of investment they are joining. There's no such thing as building wealth overnight. If you want to become wealthy you'll take the right pace of accumulating assets that gain profit in due time. In order for you to avoid scams that will take your hard-earned money you should guard yourself with Financial Education. If you have enough knowledge in handling your finances, you can never be fool by any scammer. Take good care of your money and be alert always!
5. Insure a Future Income
In life, we can never tell what's coming ahead. We don't know if everyday we are safe or have a job and if we are still capable of providing for our family. We must learn to plan ahead, specially if we are the bread-winner. We should insure ourselves, because this will save us from any uncertainties, thinking that we're going to leave our love ones who are not ready to take care of their needs. There are different kinds of insurance that can aid us. Examples are insurance for Disability, when you're not able to get back to work, Critical Illness Insurance, that can help you in your hospital billings and Life Insurance, since death is inevitable, this can provide and leave a huge amount to our family from our unexpected loss. We don't wish any misfortune to happen but we should always anticipate emergencies and be prepared for it!
6. Increase thy ability to Earn
Learning is a never ending process. We should not be complacent to where we are now. If we are making less, we need to improve ourselves and learn a new ways of earnings. We should upgrade our skills to complement the new trend of making money. It's not about just working hard but it's working smart. We have many opportunities to earn, we just need to challenge ourselves to step-out from our comfort zone!
" Go thou forth and practice these truths that thou mayest prosper and grow wealthy!" words of encouragement from Arkad.
P.S. If You want a guide in handling your finances and grow your Spiritual life as well learn from Bo Sanchez, join Truly Rich Club. To know more about it, click here.
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