Why And How To Save

As one pursues money, it is important to have good money management skills. This does not entail pursuing a degree but consuming pieces of information that are related to money management. Watch YouTube videos on tips to manage money and ways on how to save, invest, control spending, etc. Read good books on personal finance such as The millionaire next door by Stanley & Danko, Richest Man in Babylon by George Clason, The Intelligent Investor by Benjamin Graham.

I would advise taking simple courses online to equip yourself with simple financial terms or skills like taking an excel course for beginners. Saving, Investing and spending are key and instrumental aspects of money management.

This article focuses on one aspect which is savings. Savings is very essential in building wealth, saving is a path to building wealth. To save one must be very disciplined and intentional. By savings, I mean part of your income that is being kept and not spent. The easiest way to do this is by drawing up a budget, showing your income and expenses. Excel, Budgeting applications, and a physical journal can help you achieve this goal.

From The Richest Man in Babylon, the very first lesson was that part of what you earn is yours to keep. In our covid-reality, this means that, when you receive your pay at work, monthly upkeep money from home, etc., a certain portion is allocated to saving before spending. I would advise this is automated, with direct debit transfers or savings applications on your smartphone.

IMPORTANCE (WHY)

• Having savings readily prepares you to manage emergencies involving money, that will always occur.
• Savings helps you grab investment opportunities. To grow financially, your money has to work for you which is investing. You can hardly grow if you do not have that money to work for you which is your savings. So before looking at investing, think of saving because there will always be opportunities to invest.

SAVING TIPS (HOW)

• To save you have to be very disciplined. Most times, our income does not exceed our needs. So you have to be disciplined to give up quite a lot to be committed to saving. Food for thought, “what each of us calls necessary expense will always equate out income except we protest to the contrary” George S. Clason.
• When saving one should have a target as that motivates one to save. In my first year, I decided to graduate with a certain amount of money. Having that in view, I made a conscious effort to always keep part of my monthly stipends and also ensure I spend within what was left. I wasn't 100% compliant but in the end, I achieved that goal.
• About setting a target, it is important to set a realistic and achievable target considering your income. If you earn little save little, if you earn more, increase your savings. Most importantly be disciplined to save regardless. If you are faithful with little, you will be faithful with plenty.

This is by no means an exhaustive list, however, it is meant to open your eyes to see the path towards living your dream life and how savings can help you on that journey.

Simon Gerald Ekene Okika