Principles of Savings

WHAT IS SAVINGS?
Savings in literal terms is setting aside from your present income to be invented on productive asset.

Image source

PRINCIPLE OF SAVINGS
The road to financial security is paved with the money you saves. We all want financial security, but often we put off starting to save. We think we can not afford to save because we have too much things to spend on.
We should think of saving money the same way we think of spending it.

PAY YOUR TITHE
The biblical commands us to bring all tithes to the store house to avoid being cursed. Doing this is assuring us of saving for eternity.

PAY YOURSELF FIRST
This must be done after you have paid your tithe. For every income you receive you must save 10% of it in a bank account not easily accessible to you. This must be done before you pat off your expenses. The habit must be consistent, after a year you will be surprised of how much you have saved. Touch not the 10% that fatten your purse.

CONTROL YOUR EXPENDITURE
Albert Einstein once said " It takes a genius to see the obvious " The simplest things in life are the most powerful, but because they are simple, we tend to ignore them and not let them work for us.
One of the simplest but most powerful money making principle is keep a daily record of everything you spend. Write down all your expenses. There is something incredibly power about writing down all your expenditures. It makes the flow of money through your life more real and exact. It shows where you are spending, on what and why.
Study carefully your Spence habit and cut down on unproductive expenses, e.g. buying all manner of uniform dresses for all occasions should be drastically reduced.

MAKE YOUR MONEY MULTIPLY
You can make your money multiply by investing your savings in a Government bond or Treasury Bills and interest yielding time deposit products.

STOP DEFICIT SPENDING
Stop the habit of buying now and pay layer. Instead save now and buy later when you have full amount.

ALWAYS INCLUDE RETIREMENT AS A SAVINGS GOAL
Do notbpostpone saving for retirement until you are long in service. Saving enough now to afford a comfortable retirement is one of the best ways to live. The earlier you start saving, the longer your money will have to grow and the faster you will reach your goal.

WHO IS ELIGIBLE TO SAVE?

INFANT - You can open account for your infants as they are born and continue saving for them faithfully until they are of age.

STUDENT - As a student you must decide a ports of your pocket money that goes to personal saving on monthly basis. This must be done faithfully.

WORKER - As a worker you must be disciplined and save at least 10% of your income.
There is no time like the present to start saving other than now.