Should you save? how much? Nore questions than answers?
Mum, I want new Nike trainers for Christmas?
Look at this boy; do you think money grows on trees, why did you not save your pocket money? My dad did get it for me, after saying “Always save for the rainy days”.
I would go ahead and put a bit, sometimes all of my pocket money under my pillow. Like my tooth, it never grew. My brother kept taking it. Being free of any financial responsibility I saved all the money I got most times. Going hungry at school so that I could obey my mum. She should have told me how much to put away in savings.
A man called Joseph once saved his family and a nation from starvation because he understood the principle of saving. He knew the rainy day was not July, but 7 years ahead. He knew how much of his savings will sustain him for a particular period of time. This seems to be the perfect model.
Are we all going to dream dreams? Will they be interpreted rightly? Would we all go through a period of lack?
Based on Joseph’s model, we should save 20% of our income. Is this before or after tax? Why save 20% for ourselves and give only 10% to God? What are we saving for? When do you dip your hands into your savings? Are investments classified as savings? Is placing money in the bank an impotent method of handling money? How do you save your money? Put it under your pillow or in a savings account. The children of Egypt lived in 7 years of abundance. There was enough for them to save from. Should people living from pay check to pay check save money? What do we save for? Famine or a mid-life crisis?
So many questions that I cannot answer, but I know there is a need to have a picture of the end at the beginning. You need to set timelines and reasons for putting money aside.
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Published in: Personal Finance