Saving: An All-Time Financial Tip

I was having a conversation with my 12-year-old niece recently typical of young children of her age, she held me captive for close to an hour, as she told me stories of her dreams to live the best life and own the best cars and houses there are out there. I could not help myself but laugh at some of her dreams as I considered them with my adult mind.

Probably, the reason I laughed was not that most of the things she talked about were not practical but because hearing them from her reminded me of my childhood dreams.

As I searched through my mind, I decided to give her a financial tip which my mum tried very hard to teach me while growing up, “Saving”. Quite simple, right? But, don’t let the simplicity of the tip confuse you, as it is so simple that we often neglect it. Most times, we do not realize we are neglecting it until we come down broke. And I know you know how easy that is.

What Is Saving?

Saving is the art of keeping away safely, a certain amount of money out of the amount available to you per time, in a manner or place that they can be easily accessed for future use. So, saving is simply putting away today, the finance for tomorrow’s expenses.

There is a famous story that attests to the benefits of saving in the Holy Bible (Genesis 41). It is the story of Joseph as a prisoner in the land of Egypt. One day, Pharaoh had a dream and looked for someone to tell him the meaning of the dream he had. Joseph was called in and he interpreted the dream for Pharaoh when asked for his opinion, he advised that Egypt save up from their available foods for a period of famine. Pharaoh heeded his advice and as a result, Egypt became the only nation that had enough to eat and sell when the famine finally came.

When Should I Save?

Many people often wonder when they should start saving. You may have also seen yourself wonder too, or you may have also asked the question, “When should I save?”

Is it when you have made a thousand Naira or when you have made a million Naira? When should you save?

How Much Should I Save?

There is no right answer to the question of how much you should save. This is because your need and the need of another differ. Also, your income and the income of the other differ. So, what constitutes the right amount to save will be dependent on your income, your needs, lifestyle choices etc. There are many suggestions on how much one should save out of every income.

Napoleon Hill suggests saving 20 percent of your income. Saving 20 percent, however, may not be possible for some persons who have immediate needs to take care of. So, I will advise you to decide on an amount that is commensurate with your current financial realities. But, while you do that, keep your eyes on the financial level you wish to attain and begin saving towards it, no matter how little.

Closing Thought

Saving is not a new concept. It is an ancient financial rule that has survived all the past centuries. And this is because it has come to be seen as the foundation of all financial success. So, if financial success is your aim, saving must become a priority for you.