27/07/2024
WHY DO MOST PEOPLE THINK IF THEY EARNED MORE, THEY WOULD BE ABLE TO SAVE?
People often assume that earning more will enable them to save, but this mindset is flawed.
If you can't save a portion of your income when you earn N10,000, it's unlikely you'll save even a smaller percentage when you start earning N100,000.
Saving consistently is a habit that needs to be cultivated.
Start saving with the little you have, so that when your income increases, your savings can too.
Don't wait until you earn more to start saving; begin with what you can afford now.
Cultivating this habit is crucial.
There are only two valid reasons to save:
1. For emergencies
2. For investments
Saving for any other reason is essentially saving to spend.
What's the point of saving if you'll just spend it later?
Many individuals make the mistake of thinking they're saving, but they end up spending what they've saved.
Instead, focus on saving and then investing your money.
One key reason to save for emergencies is to avoid dipping into your investment funds when unexpected expenses arise.
This can disrupt the compounding effect on your money.
REMEMBER TO CONSISTENTLY INVEST AND BUILD YOUR EMERGENCY FUND SIMULTANEOUSLY.
