START SAVING A CERTAIN PERCENTAGE OF YOUR INCOME

START SAVING A CERTAIN PERCENTAGE OF YOUR INCOM

MANY PEOPLE GIVE 10% OF THEIR MONTHLY INCOME TO THE CHURCH – THE SO-CALLED TITHE. BUT APART FROM THE SPIRITUAL WELFARE, THE PHYSICAL WELFARE IS ALSO OF IMPORTANCE. THIS IS ESPECIALLY TRUE FOR SAVING FOR RETIREMENT AND/OR UNFORESEEN EXPENSES LIKE HEALTH ISSUES. SO, HOW MUCH SHOULD YOU SAVE FOR THESE SPECIAL EVENTS IN YOUR LIFE?
THE ANSWER IS: AT LEAST APPROXIMATELY THE SAME AMOUNT YOU GIVE TO YOUR CHURCH – 10 PERCENT. IF YOU CAN AFFORD MORE, YOU SHOULD DO SO. THAT IS BECAUSE YOU NEVER KNOW WHAT THE FUTURE WILL BRING YOU. THERE MIGHT BE TIMES WHEN YOU CANNOT AFFORD SETTING ASIDE THESE 10 PERCENT. THIS MIGHT BE DUE TO UNEMPLOYMENT, TEMPORARY SICKNESS, OR OTHER ISSUES.

THE SUGGESTED 10 PERCENT YOU SHOULD REALLY SEE AS A MINIMUM TO SAVE EVERY PERIOD. IN FACT, THE MORE REALISTIC ADVICE IS TO PUT 20% OF YOUR INCOME INTO SAVING. FOLLOWING IS AN EXAMPLE:

LET US GUESS YOUR MONTH;Y INCOME IS 1,000 GHANA CEDIS. THEN YOU SHOULD BUDGET THIS INCOME ACCORDING TO THE 50-30-20 RULE. THIS RULE SAYS THAT 50% SHOULD GO INTO NEEDS, 30% INTO WANTS, AND 20% INTO SAVINGS. (THE TITHE SHOULD GO INTO “WANTS”.)
TO PUT IT INTO FIGURES NOW, 500 GHANA CEDIS SHOULD GO INTO RENT AND FOOD. 300 GHANA CEDIS SHOULD GO INTO CHURCH, ENTERTAINMENT, ETC. THE REMAINING 200 GHC SHOULD GO INTO SAVINGS FOR RAINY DAYS. (KEEP IN MIND THAT THESE FIGURES ARE ONLY USED AS AN EXAMPLE.)

INCLUDED IN THE AMOUNT FOR SAVINGS IS ALSO THE PAYMENT OF DEBTS. IMAGINE YOU OWN A HOUSE ON WHICH THERE IS A MORTGAGE, THEN EVERY PAYMENT ON THE MORTGAGE IS EQUAL TO SAVING. THIS IS BECAUSE A HOUSE WITHOUT MORTGAGE MAKES SURE THAT WHEN YOU ARE RETIRED, YOU LIVE IN A HOUSE THAT IS NOT COVERED WITH DEBTS.

THIS TIP ABOUT SAVINGS MIGHT BE SHORT. BUT I BELIEVE IT GIVES YOU AN ACCEPTABLE OVERVIEW WHY YOU SHOULD PUT SOME MONEY EVERY MONTH INTO SAVINGS.

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