Have you ever imagined how much you will realise 15-20 years from now if you could save every 10 per cent of your income? This will be huge, but you will need to cross some hurdles. And the hurdle is if only you could prove the Parkinson’s Law of money wrong.
The law simply states “that expenses rise to meet income. No matter how much you earn, you spend that much and a little bit more besides”.
In this wise, financial experts argued that the major reason most people do not have enough to save is because of impulse purchases.
Consciously, people see something they buy it, with very little thought. With such attitude of buying things without questioning their necessity, people become vulnerable to Parkinson’s Law.
However, you can violate this law by applying three major principles such as determination, self discipline and the practice of frugality; on the long run you would have saved every 10 percent of your income.
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This may not be easy considering recent economic harsh situations mostly in developing countries where local currencies are constantly losing value. With such situation, it takes a determined heart to squeeze out 10 percent of every income.
Whatever the situation, there ought to be a start. You can start opening a special account for such savings and get sincerely committed to it.
As soon as you receive your monthly salary, you deduct every 10 percent and pay into that special account.
Also, the idea of spending extravagantly should be totally avoided.
There should be objectivity and good rationale for every spending by questioning every expenditure. That is why budget is important. It is expected that there should be a budget that will guide spending; that will go a long way in aiding your 10 percent savings.
In that budget, you apply frugality by eliminating all items that may not be pressing enough and spend wisely on items that are extremely necessary.
Conclusively, you will get marvel at what you will achieve in the next 15-20 years. Remember, at the initial stage, it will not be rosy at all. But by the time you get it right at the beginning, you become used to it and get better as days and years go by.
Justice Godfrey Okamgba
