Wealth cannot be built without imbibing a good savings culture. Like Warren Buffet said, ‘do not save what is left after spending, instead spend what is left after saving’.
This quote reiterates the importance of ‘paying yourself first’. At least, 20% of what you earn whether as a salary earner or what you pay yourself as a business owner should be saved. This is the foundation of wealth creation because, without savings, there will be no funds to invest.
For example, if you earn N100,000 monthly, you should save at least N20,000 in a high-interest-yielding account like a mutual fund while 50% can go toward your needs and 30% toward your wants. It is advisable that you automate the process, such that once you are paid, you move the funds before you start spending.
Remember, you work hard daily. Don’t just pay rent, school fees, fuel your car, and pay for groceries only, please plan for the future.
The 20% is what you keep towards your future and your generation will thank you for it!
Also, this fund could be a lifesaver during life-changing situations like loss of job, incapacitation, economic downturn, etc. Like the Biblical Joseph, he was able to save Egypt, during the years of famine because of 1/5th (20%) of the harvest that was saved during the years of plenty.