Yah, I like the statement that says you never have enough to save... that's so true and interesting...
So Simba, what have you managed to do when you have applied these principles? How can someone wu is doing hand to mouth be convinced of this? -----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of simbarashe wekwete Sent: Wednesday, October 20, 2010 11:46 AM To: tribewithavibe Subject: Financial Discipline Part 2 and 3 Yesterday we talked about the first step which is Tithing which is te first 10% of your income. today we shall go through steps 2 and 3 coz they are almost similar but unique. Step 2 : Save - Long Term Investment (10%) The moment we talk about saving the first thought that comes to one's mind is i do not have enough. my question to you is who has enough to save? A long term investment is something that last for over 1 year. So the principle here is putting money aside with the intetion of not using until within the next year and/ or with the intetion of buying something that you can use for more than a year. We are all young and need a lot to start our own homes. it is a fact that you can not have all you want at once so how do you then do it? Examples i can give of meaningful things to save for are your education, your wedding, a car, a house, furniture, kids school fees, a holiday at the end of the year etc. You might ask but how long do i save to buy a house? true it takes a lifetime but the idea here is to develop a habit of saving for the future. I will give an example of a building society that is giving mortgadges to buy houses but you need to pay a certain amount upfront. Many people applied but very few had the upfront fee. If u have money set aside, u will be getting your mortgadge to buy a property. Ask yourself what do you want to have in your house, how much does it cost and start putting money aside for it. Step : 3 Save - For Emergencies (10%) examples of emergencies include sickness, death in the family, theft / break in at the house etc. We all have urgent needs that just pop up here and there and what a better way to deal with these. The good thing about saving for an emergency is that when it does not occur, you still have your cash and you can use it to buy something. In finance we call this self Insurance. it like getting an insurance policy. the only difference here is that u manage your own funds and when there is no emergency, you have all your money. Step 2 and 3 are very difficult but once you begin saving, you will begin to see yourself at another level. it is easier to save and buy your TV, than to get it on credit and pay the cash price plus interest. It is easier to help at a relative's funeral from your own resources, than to borrow and pay back from your income. the easier way to do this is just simply leave the money in a bank account. You can go a step further and open a savings or investment account that earns a bit of interest over time. You can even set up a fund as a group and invest a lumpsum of funds thus earning more interest than you would get on your individual investment. there are other ways of investing ad growing money and these can be discussed later but right now we are dealing with the foundation which is saving. Sometimes people think you are wealthy when they see your Plasma TV but kungorongeka so. Step 4 is coming tomorrow and it gets hotter. -- You received this message because you are subscribed to the Google Groups "tribewithavibe" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/tribewithavibe?hl=en. -- You received this message because you are subscribed to the Google Groups "tribewithavibe" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/tribewithavibe?hl=en.
