Who should save? The rich or the poor! W h e n should savings actually start in once life? These are questions many people keep asking when they topic about sav- ing and saving for the future comes up.
Savings is for everybody irrespective of how much you earn and best when started early.
In fact, experts say the best time to start is the time you start earn- ing income, depending on what you financial goals are.
The reason is that the earlier you start the better you cultivate the habit, and when it sticks it is there for life.
Experts raise concern that many people still do not understand the secret of financial security and long-term wealth creation, so they keep on searching for wealth using wrong models.
According to them, wealth creation according is about building invest- ible funds through savings.
Then savings here is not alone for those who earn so much, but to everyone irrespective of what you earn.
The secret then is planning a savings pro- gramme that would enable you put down something somewhere each month before you start tampering with your pay.
Old Mutual’s in its lesson “On The Money – The Big Five Secrets of Money Man- agement” says the secret of savings is like the behavior of the Lion.
“The Lion eats first, ahead of the pack. You too should ‘eat first’ by arranging an automatic de- duction from your salary or wages.
Lean as we go on… I can’t save!
“There is nothing left to save at the end of the month! How many times have you heard this? Have you said it your- self? Not being able to save is one of the biggest reasons why some people don’t become wealthy.
Most people under- stand that they need to save and save “a little bit” at the end of the month
whenever they can.
But this often doesn’t work, as there always seem to be other expenses that eat into this amount.
The first secret of the Big Five, the ‘Secret of the Lion’, turns this behavior around and says “save first”, ahead of all other expenses, and not last, out of any leftovers.
Like the lion, which eats first ahead of the pride, you should pay yourself first and save a fixed amount each month.
Make this savings an au- tomatic deduction taken from your pay; before you start paying other expens- es.
By looking after your savings need first, you are securing the future of your own pride-your family’s future.
The secret of the Lion forces you to change your spending patterns, Even if you start with a small sav- ings amount, you will de- velop a savings habit.
This habit will make it easier to increase your savings over time.
If you practice the Secret of the Lion and com- mit to an automatic pre- spending savings plan, you will be well on your way to real wealth and long-term financial security.
The secret of the Lion says that we must pay our- selves first and save in order to protect our family’s fu- ture.
But what is it that we need to protect ourselves from? How prepared are you for these life changing situations?
Ask Youself?
*What if I lose my job? *
What will happen to my family if I die? *
How will I pay any un- expected medical bill? *Where will I get the money to pay for any major car or house repairs? We don’t only need to save for disasters and emer- gencies, we also save to im- prove the quality of our lives in the future, and achieve some of our dreams.
Such dreams could be… a car, a holiday, a wedding in the family, a deposit for house, further studies, and birth of a new child, children’s education and retirement.
We save for emergen- cies and for a better life for the future.
We need to get out of the habit of spending everything now.
Think of tomorrow! Even if you cannot afford much, get into the lifelong habit of saving.
You are never too young to start saving.
The earlier you start, the better for you. So, develop a savings plan.
This is the first step towards taking control of your future.
