I always struggled to stay financially afloat back in 2016 (when I got my first job). Living from paycheck to paycheck without any safety net to fall back on. Every payday I assured myself that I would have some saving at the end of the month. Within a fortnight I was already waiting for payday to arrive. The plan of saving money never truly materialized. To end the constant struggle to stay financially afloat, I took a step that would go on to help me a long way. However, it turns out such habit was the norm back in the hay days of the city of Babylon.
This blog is to help out people who are just starting professionally. It is also for those that have been struggling to stay financially stable. It is not always that you stumble on to such saving techniques that help you grow your income. Because the society that says you don’t need money to stay happy is the same society that will think twice before helping you during your tough times. Hence, it is vital to be financially stable. Recently, I read a book called the richest man in Babylon. It is an amazing book for those looking to be in control of their money. For those that are not so keen with the idea of reading, I have two important lessons from this book. One of which I started by accident 3 years ago that has since been replaced with a better option.
Save first Spend later
Back when I struggled to save money at the end of every month, I knew I had to make change fast. Discipline was a major hindrance that I faced in terms of saving. In order to force/leave myself with no choice, I decided to start a recurring deposit (RD) in my salary account and set the date one week from salary day. This did two very vital things. One, it made sure that I saved first before spending. Two, I could not use it until the term set was complete. If you are struggling to save, I recommend you start a RD with your salary account. Believe it or not whatever you save won’t be missed in the long run. In fact at the end of the term you will thank yourself for saving.
In the Babylon book the writer shares a lesson to accumulate wealth. The richest man is Babylon saved 1/10th of his income earned. Calculate what amounts to 1/10th of your income and start and RD to get into the habit of saving.
Make your money work for you
After the term of RD is complete and the money is transferred back into your savings account. It is very important that you do not spend it on things that you do not need. Rather let this money work for you, how? Start investing, in the today’s day and age it is very easy to invest from our phone with the apps that are available. However, before you do start investing it is important to seek advise from people who you know that have done it and know what they are doing. DO NOT WALK INTO SOMETHING YOU DO NOT HAVE KNOWLEDGE OFF. Always ask people in your circle that know a thing or two about investing. Because people that have the knowledge never shy away from sharing it.
After all, the person that is financial stable has one less thing to worry about and therefore is better mentally than the one that lives from paycheck to paycheck. Hope this blog helped put things into perspective in terms of building wealth. It is simple but effective advice, you will thank yourself in the future to trying it out.