Sep 13th, 2012 by Jennifer Lynn
Saving is the cornerstone to building a strong and abundant financial future.
It’s past midnight. The apartment is blessedly silent and I’m curled up on the couch with my tablet, pondering this thought:
I am truly amazed at how little people save.
Many of my friends subsist paycheck-to-paycheck, and they believe stashing away a few bucks here or there is not going to make a significant difference in their finances overall.
I strongly disagree.
Every great financial empire was built upon saving, or someone prudently setting aside what is left over after payments and spending—their surplus.
Surplus of money can only be created in two ways: by increasing cash flow into your personal coffers and by decreasing the cash flow out.
Each cent is an opportunity for growth; fortunes are generated through tucking away teensy amounts of money until it blossoms into a thriving honey-pot of wealth. This small stash of surplus (savings) needs to be guarded prudently—as each cent accumulates, it becomes a financial seed to prosperity.
Plant each financial seedling protectively into fertile soil through wise investments and, through careful cultivation and attention, your seeds will begin to flourish and mature into fruit-bearing trees.
This produces further seedlings—interest, dividends, or capital gains, for example—and these children of initial capital will continue to multiply into streams of income, eventually producing their own offspring, and so on. With enough dedication and perseverance and by proceeding to sow seeds wisely, your small garden of savings will evolve into a thriving orchard of ‘money trees’, each producing an abundance of fruit to sustain you through the seasons.
So, don’t hack down your money tree!
It is so typical nowadays to spend an entire paycheck, which is equivalent to devouring all the financial seeds before they have an opportunity to grow and multiply.
Continuous spending also evolves into a vicious cycle where a financial surplus is never available, and therefore an opportunity to build a solid financial foundation upon it can’t manifest. Without proper attention and care, your financial garden merely withers and dies.
There are also those who foolishly blow through their entire savings and destroy income streams (usually on stuff) and essentially chop down all their money trees, viciously desecrating the entire orchard and leaving their land barren. They then wonder, why is money not plentiful? Why am I destitute and dead-broke?
This is why I am genuinely baffled by how more people don’t recognize the impressive nature and powerful potential of saving. Here is advice I offer to my friends:
- Be mindful that borrowing money—getting into debt—is merely paying rent on someone else’s savings. Avoid this situation whenever possible.
- And most importantly, don’t overlook the importance and value of saving—it is the key to building a thriving financial empire. Each cent wisely used holds the promise of a prosperous financial future.
Small, accumulated savings matter tremendously because it is your path to wealth and opportunity. So, what will you build?