Empower your Future With Savings
Written by admin on December 6th, 2010The saying that, “a journey of a thousand miles starts with a single step”. And also that “Rome
was not built in a day” is a common saying in the month of average individual. But how this is applicable to savings and financial freedom is what many people don’t know. A lot of people have missed out in life by refusing to take a baby steps towards their financial freedom. They want to start their business only when they have a lot of money. They want to be millionaire sometimes in the future, waiting for miracle and favourable conditions, forgetting that favourable conditions will never come; you have to create one for yourselves. According to Leowando da Vinc, “He who wishes to be rich in a day will be hanged in a year”. Those people you consider wealthy today did not get to that position overnight; they started with a baby steps.
Did you know that time is the secret resource of the self made millionaires. And that is the only recourse you heed to become one. You don’t need to be born wealth or have special advantages to join the millionaires club. You have already been born rich right from the day one you step your foot on the surface of earth with time. We both have the same number of hour’s day in day out, both rich and poor. The difference between those who become rich and those who stay poor is the way and the direction they use their time. Once you master the use of time, you have control of your destiny.
To be rich start from where you are and what you have. Look at the table in this article. It vividly explains what the millionaires known as “time value for money”. It explains how your money can grow with time using the concepts of compound interest. Wealthy people know that one naira put away in savings consistently over time can produce amazing results. Assuring you are putting aside a day, 0 a week and , 500 a month at 20% interest, you will have .4million in 20 years time. While 0 a day, 0 a week, and , 000 a month you will amount to .8million in 20 years times.
From experience over five years, many shares in stock market appreciates more than 50%, 100%, 200% , even more within a year, but you need to learn on how the market works or to demand the service of the expert to enjoy this market advantages. And I am very sure you can do far more than that. Can you imagine how much and how fast you can become a millionaire if you discipline yourself to save on a daily basis and putting away 10% or more of your income in an investment account, and any extra income and increment in income should also be added to your investment. Try to remain frugal for some years to achieve your millionaire dream, where and when you can now freely enjoy the income for your investment.
As a father, you are not only responsible to yourselves to join the millionaires club; you are also responsible to your children, not only by sending them to school, but also plan for their future financially. Imagine what , 000 investment in capital market will worth in 20 years times. With proper management, the investment worth more than million, Parents are responsible to organize a namy ceremony for the new born baby, but the money generated at such occasion belongs to the baby. It is advisable that such more should be into investment for the child. And at his/her birthday it is idle to add some capital to such investment instead of organizing party that will consumer thousand of naira for a little kid that has no sense to understand what you are doing. Don’t get me wrong, I am not saying you should not celebrate your children birthday, but do it when it makes meaning. Ideally, part of the revenue from his/her investment can serve that purpose, not your hard earned money.
As a student saving part of your pocket money, which can be put into an investment, should be a good discipline you should emulate, talk to your parents to buy shares for you, you can suggest substituting that for something they have promise to do for you. “You can ask them to lend you some money, to be deducted from your pocket money, chance are they with be willing to lend you such money if they hear what you want to use it for. Schools should encourage savings by establishing what we called “Student banking” for their pupils. As an income earner, you have no excuse not to save and invest. No matter how small your salary, nobody is advising you to save and invest all your salary; just small part monthly will go a long way towards your financial freedom. Every success and failure in life is all about two things. “Pay now and play later” or Play now and pay later”. It is all about sacrifices. Don’t be a victim of “Parkinson’s law” which says, “Expenses rise to meet income”. This means that no matter how much you earn, you tend to spend that much and a little but more beside. Pay yourself first always. Approach your employer for loan against your monthly income, if that one doesn’t work out, then approach banks e.g. Oceanic bank which offer such loan. But remember the purpose of such loan is investment, and nothing but that.
According to Brain Tracy, in his book “21 success secrets of self-made Millionaires” Developing the lifelong habit of saving and investment your money is not easy. You have to set it as a goal, write it down, make a plan, and work on it all the time. But once this practice locks in and becomes automatic, your financial success is virtually assured.
