Grow Your Savings Ratio
(2nd of 3 parts)
See link for 1st part: https://www.wei2success.com/consciousness-on-your-savings-ratio1-of-3/
See link for 3rd part: https://www.wei2success.com/living-on-a-budget3-of-3/
“To grow you must be intentional” says John Maxwell.
That applies even to your savings ratio.
Do you already set aside an amount for your Savings Ratio?
Say 1%, 2% or 10%? That is good news.
If you don’t have a savings ratio yet, then good news is you are never too late to start.
For both instances, from SR=0 to improving SR, you need to be intentional to make it grow.
Look at how businesses are managed, each year, to be viable, every business should have profit. How are profits measured? If they have a surplus when they subtract expenses from income then they have profits. There are two ways that they can improve profits. Either business build on their strategy to increase their income or control their operational expenses. Businesses manage their costs to improve profits.
The same mindset may be applied to personal or household finance. There is a need to be mindful of these two elements, the income and the expenses. It is essential that you are intentional in your plans on how to make these income and expense work to your advantage.
Every month you need to have a plan to save up. Every week you need to translate this plan into a strategy for you to be able to execute well the plan. Everyday you need discipline to pull through with the strategy that you have devised.
You are earning $500.00. Initially, by setting aside 5% of your income, you will save $25.00. Your strategy is to make a budget to be able to address all your financial needs and at the same time set aside $25.00. Discipline is what will keep you from following your budget for your defined purpose.
You have decided that you will be saving $25 a month for the purpose of capital growth. You want this small amount of money to be the seed of the wealth you will be growing for your future. Since it is just a seed, at present it does not have much value. Over time, after it germinates, and grows, its value will change. The seed will become a plant and eventually a tree. Come harvest time, the tree will bear fruit. The fruit it will bear will not just be for one harvest. It will be harvest time over and over again. Depending on the seed you have planted, and the care you have given, it can continue for a long period of time.
This is the harvest that you want to have. The money you will set aside is for capital growth. It is your seed now so that you can enjoy plentiful harvest for long period of time in the future.
The seed may be capital for a future business like a water station, a car wash, a restaurant, or a specialty shop. It can also be capital that will give you future rental income like an apartment, condo unit, house or a vehicle.
Not all would want the hassle of withholding some of what they have now for a future benefit. Not all are for capital growth.
Some would not want to have businesses. Some people do not like its complication.
Some do not get the meaning of delaying what they can enjoy now for the benefit of enjoying more fruits in the future.
Some just don’t have the means to get another slice at their very thin pie to save for the future.
Obviously, there can be one thousand and one reasons why it cannot be done.
To those who will it enough, there are numerous ways to make sure it happens.
Choose to make it happen. Improve your savings ratio.
-Charmz Bautista
Wealth Engineering Institure (WEI2SUCCESS INC,)
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