Wealth creation – Rule 6 (Balance your Savings and Spendings)

Wealth creation – Rule 6 (Balance your Savings and Spendings)

If you must create wealth then you should balance your savings and spending.

One day while I outside my house amidst  my neighbours I heard one of them saying that the money you will need to execute a big project cannot be gotten by savings. I just smiled at his ignorance  because  that was his believe. There is the

popular saying that “heaven help those who help themselves” although that saying is not  scriptural but it is golden. Yes, it is golden because golden is  known for its value only after it has been refined. The day you start balancing your savings and spendings you are a step closer to wealth creation. The beginning may be rough but the end can be very promising. Just imagine someone who earns  $500 dollars monthly spending $20 dollars daily. At the end of 25days he must have exhausted the $500 and before 30 days he must have been in debt of $100.

If such a man continues like that at the end of the second month his debt must have risen to $200.

However , wise people who want to create wealth will try to at least save 10% of their monthly earnings (ie $50)  and at the  end of 12 months such people must have saved $600. So if you  as an individual  has the habit of saving a fraction of your earnings, tell me why you won’t have something to fall back to in your bid to create wealth. 

Most nations are in debts today not because they don’t  have money to run their economies but simply because they are unable to judiciously manage the resources at their disposal and there by have no other option than to borrow from  other countries who have good policies aimed at controlling their resources. Nothing big starts big. Cultivate the habit of saving more and spending less. Most times for your long term goals you have to live below your means on a short term just to make your long term goals come to light. A prominent  telecommunication company (MTN) operating in Nigeria once has a slogan that “great things start small, go start something”.

Food for Thought: “Save more spend less” and “Be quick to save but slow to spend”.

What do you have to say about this?  Leave your comments below.