The Richest Man in Babylon is one of the simplest and most relatable books on personal financial management. It’s a good resource to refer to if you are looking to start your personal finance journey or you just want to get a refresher on managing your income. Every time I think of the book, I remember one of its first principles: start thy purse to fattening, which encourages paying oneself first before making any other payment.
Saving is a practice many of us have been encouraged to adopt but how many of us save actively? Putting aside some money for future needs, wants, and emergencies may just make the difference between what you have now and what you desire tomorrow.
Times have been tough and for many people, their income keeps getting eroded as the economy worsens. With the rising cost of living, one tends to spend more to purchase the same items that they had recently paid less for. Also, income doesn't always rise to meet inflation and this presents a problem. So many people are managing to stretch their income and saving money is probably the last thing they want to consider. Saving funds provides a potential income source for the future but how does one save from an already stretched income when there are pressing needs all around? Cultivating a savings habit is key because we will never arrive in the future and find money that we have not saved up.
Everyone can save irrespective of how much their income is. Many people are discouraged from saving because their income is stretched and they don't see how they can save when they have so many things to pay for. The key is to remember that saving today, no matter how little, will provide for the future. One must also get creative about expenses and earnings.
Cultivating a savings habit is an essential skill that can help you achieve financial stability and security. Here are some steps that you can take to cultivate a savings habit:
You can develop a savings habit by following these steps and start the journey of achieving your financial goals. Remember that consistency and discipline are key to success, and with time and effort, you can develop a healthy savings habit that will serve you well for years to come.
Gbubemi is a contributing writer to MoneyCounsellors.com