SAVE YOURSELF FROM DOUBLE WAHALA!!!
LEARN HOW TO ACHIEVE FINANCIAL SUCCESS IN 2020 (1)
We all want to be Financially successful, but most times we forget that one of the ways to gain financial success is through Financial Literacy.
Financial literacy is having the set of skills and knowledge that allows you make informed and effective decisions with all of your financial resources.
Simply put, it’s the ability to understand how money works.
In these series, we will all be learning exactly how money works.
One of the vital aspects of Financial Literacy is Understanding the concept of SAVINGS.
Savings according to Keynasian Economics, refers to the amount left over after an individual’s consumer expenditure is subtracted from the amount of disposable income earned in a given period of time.
In Simple terms, it refers to the amount that is left with an individual after spending.
WHY SHOULD YOU SAVE?
The truth is that we all want to chop life, in fact it’s normal “we can’t kill ourselves” but you need to chop life with sense.
How many times this year have you thought about saving? How many times did you actually save? Most of the times, the problem is not if you earn enough money, it’s about how you spend the money that you earn.
Even the Bible says “Saving up for a rainy day, putting your money to work and multiplying it is a wise thing to do”.
Saving money for a rainy day may seem impossible at times. Everything around us seems to be increasing in price, yet your pay probably remains stagnant.
However, you need to realize that the first step to saving money is having the mindset that you have to save. Don’t think of saving money as a means to an end, think of it as a regular habit like brushing your teeth.
WHY DO YOU POSTPONE SAVING?
From my research, I realized that one of the reasons why people postpone saving money is because they believe there would always be a paycheck next month.
They seem to have forgotten that Emergencies can come up at anytime, what if you haven’t received your paycheck at the time of emergency or probably your paycheck isn’t capable to solve that particular problem, what will you do, borrow?
That’s what I call “ double wahala” if you’re lucky to see someone to borrow you money , you won’t even have peace of mind because you’ll be thinking of how to refund their money and worst case scenario, you might not get anyone to borrow you.
The reality of life is that emergencies can and DO happen, and it’s imperative that you are prepared for them.
Think about that Big mansion you have been dreaming of buying or that Sleek car you really want to own, how do you intend to ever get it if you don’t plan towards it?
One of the ways to plan towards it is by Saving, I know you can get a contract that will fetch you the whole money to purchase the big house and sleek cars at once, but those things do not happen everyday and honestly speaking there are always other expenses to cover, even when they do happen, therefore we are mostly left with the most practical way to achieve your goal which is to save towards it.
SAVING TOWARDS INVESTMENT
Moving forward, it’s now an established fact that investing is a very good way to earn money, some people assume that they can’t invest because they feel their income is too small. Let me burst your bubbles, do you know that you can save towards investments too?
Here is a practical example of how, let’s assume you want to invest in treasury bills and you probably earn N30,000 monthly, since the least amount you can invest in treasury bills is N100,000, you can decide to save N10,000 out of your salary monthly.
By the end of 10 months you would have saved up N100,000, now all you have to do is go ahead to invest the money in the Treasury Bills.
You probably have been thinking of starting up a Business of your own, how do you intend to do so if you don’t have any money saved up for yourself to implement your plans? Even before you can even think of bringing investors on board, you need to get something going on for yourself already because that’s the only way people will trust you to use their money well.
Make sense right?
In our next article we will talk about some of the steps we can take to help us save more effectively.
Till then I’ll leave you with a quote from Alexa Von Tobel that says,
“A good financial plan is a road map that shows us exactly how the choices we make today will affect our future.”
Have a productive week ahead.
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Written by Irabor Peace “Poria”