For most people, you promise to save money when you get that next salary increase or a better job, when the kids are grown or when all your bills are paid. The truth is, you will only make the effort to save when your future needs become more important than your current wants. Simply put, you can only save when you learn to prioritize.
The truth is most people actually think they have their priorities right! We think a vacation is deserved, those new shoes and clothes, the kids deserve the best of everything because you did not have them when you were growing up. But this quote by Will Rogers best captures exactly why we spend the way we spend. ‘Too many people spend money they earned… to buy things they don’t want …to impress people they don’t like’. Most of what we spend on can be lived without!
Why should we save?
We should save so that our family’s future needs can be catered for which could be tuition for the kids, the purchase of a family home especially in Nigeria where the mortgage system is almost non-existent.
We should save so that our future can be catered for without being a burden on our family. We save in anticipation of emergencies that might arise, it could be health related or an unplanned occurrence.
We save so that our children can have an inheritance.
Why don’t we save?
We don’t save because most people cannot delay gratification. You have earned your salary or bonus and so you must immediately reward yourself with a new car or better accommodations or a vacation.
We do not save because we have goals that compete with the desire to save. When saving money becomes less of a priority than the new weave, latest car or toy in town.
When our future needs do not take priority over our present wants.
It is not too late to take control of your finances and start saving.
‘It’s not how much money you make, but how much money you keep, how hard it works for you and how many generations you keep it for’. This quote by Robert Kiyosaki sums up how important saving is for the future.
How do we save?
Start by making savings a priority. When you save first, your money stays where it is supposed to.
Make a budget. Track all of your income and all of your expenses. Deliberately assign all of your income, start with the most important categories like bills, feeding, giving, housing and transportation.
Follow the budget. The hard part is not creating the budget, its sticking to the budget. Be committed to saving, delayed gratification helps build self-discipline.
Beyond saving, what next?
There is so much pleasure in watching your savings grow, once you start you will not be able to stop because it is almost addictive.
Benjamin Franklin has this to say about money ‘Money can beget money, and its offspring can beget more.’ Put your savings to work with wise investments vehicles like fixed income, mutual funds and quality stocks with strong fundamentals.
To find out more on the ways to make your savings work for you, contact us on 01 448 8888 or send a mail to email@example.com .