DEVELOPING A SAVING HABIT IN A HARD ECONOMY

Developing a Saving Habit in a Hard Economy.


No matter what your achievement is in life, no matter what you have gathered as wealth, if you don’t have a saving and investment, you will end up in poverty.
No matter ho w small you savings and income is, if you don’t have a saving habit, you will die in poverty. I have a real life story to prove this, it goes thus:
“In 1923, a group of our greatest leaders and richest businessmen held a meeting at the Edgewater beach hotel in Chicago. Among them were Charles Schwab, head of the largest independent steel company; Samuel Insull, president of the world’s largest utility; Howard Hopson, head of the largest gas company; Ivar Kreuger; president of the International Match company; one of the world’s largest at that time; Leon Frazier; president of the bank of international settlement; Richard Whitney; president of the New York Stock Exchange; Arthur Cotton and Jesse Livermore, two of the biggest stock speculators; and Albert Fall, a member of President Harding’s cabinet. Twenty five years later, nine of them (those listed above) ended as follows. Schwab died penniless after living for five years on borrowed money. Insull died broke living in a foreign land, Kreuger and Cotton also died broke. Hopson went insane. Whitney and Albert Fall were just released from prison. Fraser and Livermore committed suicide. I doubt if anyone can really say what happened to these men. If you look at the date1923, it was just before the 1929 market crash and the great depression, which I suspect had a great impact on these men and their lives. The point is this: Today we live in times of greater and faster change than these men did. I suspect there will be more booms and bursts in the next 25 years that will parallel the ups and downs these men faced. I am concerned that too many people are focused too much on money and not their greatest wealth, which is their education. If people are ready to be flexible, keep an open mind and learn, they will grow richer and richer through the changes. If they think money will solve problems, I am afraid those people will have a rough ride. Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.
Most people fail to realize that in life, it is not how much money you make; it is how much money you keep
It may really be hard, but for anyone whose future is more important to him than the present, then, it should be an adventure. As EXPENSES cater for your present, so also SAVINGS cater for your future, which is more important than your present. Savings is very important in the school of wealth creation. Anyone can hardly create wealth without savings. It is not important that you are not in a well paid job, but that you are a super saver and not a super spender. It is not what you collect as salary that matters, but what you save; because what you save will save you and what you keep will keep you. Savings is the first step in the ladder of wealth. A person that does not know how to save is working for the person who knows how to save in the long run, because no condition is permanent; there is no assurance that your well paid job will not leave you one day even if you don’t want to leave it and be left with what you have saved and the experiences that you have gathered from your job. Savings should be a compulsory lifestyle for anyone who wants to survive in a hard economy. There have been people that are wealthiest of men in a boom economy, but because they refuse to follow closely this cardinal principle of wealth creation: SAVINGS. No matter the amount of money you have now, if you don’t put aside savings for the future time, poverty will pay you a visit one day.
If you come from an average background, you need this habit of savings to succeed legitimately. Everybody is entitled to his own opinion, but this is a matter of principle and wealth creation. The truth is in every man’s life, there are high period in which the flow of money into your hands is uncontrollably much, the money is just coming left, right, central, back and front but there are also low periods for everybody when the cash is not coming as expected, it is what you have in savings that could possibly help out because in hard economy, everybody will be singing the song of no money, so there is hardly anybody that will want to borrow you money in a hard economy. It is not what you earn but what you save that matters. A man taking N7500 and then a man collecting N750000 are the same if both do not have savings as at the day they are both sacked from that paid employment because they will both come to square one. Cut your expenses and increase your savings.
You cannot manage your life without a reservoir. Savings is vital aspect of a man’s life, without it there cannot be meaningful investment. Once your income is equal to your expenditure, then there is a big problem at hand, because it means there is no savings and therefore the individual is not secured.
Many people in this part of the world believe that savings is for those people who earn fat, saving habit is sure, that is necessary for everybody.
The best time to cultivate the saving habit is during childhood. Olden day’s parents used to teach this unknowingly by making sure that their children kept the most part of whatever they earn in a safe called kolo in Yoruba. It is enclosed in such a way that it discourages the child from taking money from there. The child who grows up in the environment of this type of habit usually has a saving habit.
But no matter the environment under which you grow up, you can cultivate the habit of savings if you want to because what you save saves you and what you keep, keeps you.