The Law of Saving

Financial freedom comes to the person who saves ten percent or more of his income throughout his lifetime.

One of the smartest things that you can ever do for yourself is to develop the habit of saving part of your salary, every single paycheck. Individuals, families and even societies are stable and prosperous to the degree to which they have high savings rates. Savings today are what guarantee the security and the possibilities of tomorrow.

Start with You, first outcome of the Law of Saving comes from the self. It is to “Pay yourself first.”

Begin today to save ten percent of your earnings, off the top, and never touch it. This is your fund for long-term financial accumulation and you never use it for any other reason except to assure your financial future.

Develop New Habits Regarding Money; the remarkable thing is that when you pay yourself first, and force yourself to live on the other ninety percent; you will soon become accustomed to it. You are a creature of habit. When you regularly put away ten percent of your earnings, you soon become comfortable living on the other ninety percent. Many people start by saving ten percent of their income and then graduate to saving fifteen percent, twenty percent, and even more. And their financial lives change dramatically as a result. So will yours.

Take Every Advantage, the second corollary of the Law of Saving says, “Take advantage of tax deferred savings and investment plans.” Because of high and even multiple tax rates, money that is saved or invested without being taxed accumulates at a rate of 30% to 40% faster than money that is subject to taxation. Self-made millionaires are almost obsessive about accumulating their funds in assets such as real estate; self owned businesses and equities that increase in value without triggering tax liabilities.

Invest in company pension and retirement plans, Education Investment Accounts, stock option programs and whatever else has been approved by the savings rated investment for long term financial accumulation. Make every dollar count!

Action Exercises, here are two things you can do to apply this law immediately:

First, begin today to put away ten percent of your earnings. Set up a special account for this purpose and treat your contributions to this account with the same respect that you do your rent or mortgage payments each month.

Second, become a lifelong student of money. Read the best books, take courses and subscribe to the most helpful magazines. Know what you are doing so you can always make intelligent decisions when you invest your funds.

Speed and necessity….

"In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment. " –Charles Darwin

We need to understand the link between the speed of our work and how our mind decides the speed and pace of work. Our speed and pace of work is not a peripheral issue but is a deep mental issue. There are occasions when we are really fast and there are other occasions when we are not as fast as we have to be. We can not be slower or faster than we want to be. Everything has a strong reason in our mind.

We need to enter every activity as though our very survival depends on that activity. With this state of mind alone, we will be at the peak of our efficiency and speed.

While I write this I am reminded of a small story I read somewhere. A rabbit was being chased by a cheetah. As we know cheetah is an animal which can run very fast and the speed of a rabbit is no match for that of the cheetah. Even after a very long chase, the cheetah was not able to catch the rabbit. Ultimately the cheetah gave up chasing and asked the rabbit how it is able to run faster than the cheetah.

The rabbit replied, ‘It’s true that you are capable of running faster than me. But you see, you are running for your food, but I am running for my life!’ and so saying disappeared into the forest!

Now you will understand what determines our speed!