SAVING is the percentage of your income or money you set aside for future purpose in place of squandering it.
Saving has a vital role to play if you want to be financially secure but people find it hard to set money aside monthly. You can be a good saver by reducing your expenses and setting a plan in place to save for the future.
PAYING YOURSELF FIRST is a way to save money and it’s still the best way to save money. Setting a certain percentage of your earning aside which can be between 10-30 percent or even more depending on how you control your expenses. you’re saving for yourself and your future goals before spending the rest on expenses. Doing this seems tough but it’s easy when you put your mind to it. Only when your mind is focused on a particular goal and you take the necessary action that’s when you can achieve it. Anybody can pay his or herself a certain percentage of a his or her earning if the person is unyielding and ready to leave the rat race. When you pay yourself by saving a certain percentage which grows over time, it gives you a level of confidence that you have something to fall back on and you are taking a step of stepping out of the constraint of paycheck to paycheck.
The only way to grow your wealth is to make saving and spending less your habit and that’s one of the key points that distinguish between the poor and the rich. When you save, what’s the aim of your saving and paying yourself for? Is to buy assets or liability? Is it to plan for project, invest? Is it to plan for retirement? “Are you planning on saving for Impulsive buying that don’t add value to you? Your saving is what you do to achieve certain goals in your life and if it’s not achieving the sets goals it’s no more saving but sowing and not reaping. It’s like planting a seed that dies with time because it’s not been watered. When its watered it achieve its aim by growing.
When you live a life style of debt you are living from paycheck to paycheck with no documentation of where your money goes. When your money is not well managed its fades away or either develop wings and vanishes to who knows how to manage it and you have yourself to answer for it as time passes.
It can be very tempting to purchase something impulsively you want today rather than saving up for it and paying cash for it later. Delaying an impulse buying also helps you decide whether it is something you really need, or a waste of money. Denying yourself of those things to plan, live an organized and financially free life pays a lot later in the future.
Money used to purchase to any asset where there is an element of great investment will make you happy and fulfilled with time. Most times, the investment can be risky or even cause losses but when it bounces back most times the return on investment is huge and it pays off. Shift your thinking from living paycheck to paycheck to start saving and planning your finance to achieve financial freedom and plan with the saving to make it an ASSET and thank yourself later for a life of financial fulfillment and freedom.