On The Importance of Saving At Least 10% of Your Income
It's a new year which means we all have new resolutions that we aim to live by. One resolution for me is to (re)become active on the Hive blockchain. It's been a long long time since I posted or interacted on-chain.
The past year, I've been much more of a passive observer. Now is time to get back into the swing of things.
In today's post - my resolution to save at least 10% of my income.
On The Importance of Saving At Least 10% of Your Income
Saving 10% of your income is a piece of advice that I learned from an early age from a book called "The Richest Man in Babylon".
This book has time-old investing principles laden in it. It's a must-read for anyone who's looking to build wealth in their lifetime.
There are just so many things you can learn from this book. The 1/10th of what thy earns principle is at the top of the list.
If You Desire Riches
If you desire riches, then you must start by saving 1/10th of what thy earns. If you make $10k per year, save $1k per year.
Saving this money is your "freedom tax" - as Tony Robbins calls it. It's the money that you set aside for your future self. You're investment nest egg is built by saving 1/10th of what you earn.
What if I Can't Afford to Save 1/10th?
This is the most common excuse that people have when confronted with the most basic principle of building wealth.
For some reason, we as humans are led to believe that we are always stretched too thin. We build a lifestyle for ourselves that is beyond our means and then spend all of our earnings.
Then we sit back and wonder why we can't afford to save more money.
Instead, look to the places where money is being spent frivolously.
Then, look to ways you can increase your earnings (another principle from the richest man in babylon).
Doing these two things in conjunction is how you become rich.
Even people who live paycheck to paycheck can make use of these principles. It truly is as simple as sitting down, thinking it through and then immediately executing.
No hesitation. We are hours away from the new year and if I can leave you with 2 things to resolve yourself to improve your life with, it is these:
- Save 1/10th of what you earn
- Decrease Your Living costs and simultaneously increase your earnings so you may save more
My name is Asteroids - well, that's my Hive name, anyways. I believe firmly in the future of Web3 technology and its potential to reshape our lives. I'm a serial entrepreneur and my aim in life is to always evolve and find new ways to leverage technology in my life.
As I continue to build things, I find new and important wisdom in all sorts of places. My goal here on Hive is simply to share that wisdom so that you can improve as well.
Working is as much about building good habits as it is about doing the actual work. Remembering this on a daily basis has changed my life for the better.
Until next time,
-A
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I have been making use of the phrase “10% of what I earn is mine to keep” from the book “The Richest Man in Babylon” ever since I came across it in April last year and I am glad with the progress.
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Mine to keep is such a powerful phrase, keep it up!
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Thank you 😊
This is good way to start a new year ,a good plan also ,is there anyway I can purchase that book online or any pdf link if you have it
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The richest man in babylon is the title, I'm sure there are some PDFs online!
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Part of the problem in saving 10% is that we feel compelled to pay others first. Most of us will short ourselves our 10% because we pay everybody else first. Our 10% is the most important savings. Everybody else can wait to get paid. Without that 10%, we'll never be able to stop working.
Along those lines, Dave Ramsey sometimes tells people who have debt and lost their job to focus on shelter and food for their families. Everybody else gets an apology, but no money until income is restored. We need to focus on our own priorities, not the priorities of our creditors.
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This is so true. One part of the book I love is at the end when he tells the story of the person with many debts who becomes a slave and returns a free man to pay off his debts
Despite having so many debts, he STILL ensures to pay himself!
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This is really a great post you made here, as you said that you were a passive observer on Hive last year, me too.
I have also resolved to get back to posting and being active on Hive.
I also actually own and have read the Richest Man in Babylon Book, but oddly enough I have not yet practised the principles in it!
It is high time I practise the rule of saving 10% of what you earn, thanks again for this write-up as I am a victim of not practising that 10% rule!
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Saving 10% of net earnings is absolutely excellent advice and wisdom. If that's not possible due to extraordinary circumstances (such as unemployment or emergency expenses leading to huge debts), still make the effort with whatever can be spared. Paying rent is more important than making a student loan payment.
The 10% can be used first to establish a Rainy Day Fund or an emergency savings account. This is money set aside for emergencies and unexpected expenses. Six months of earnings is the minimum to have in the Rainy Day Fund. After that, the 10% can be re-routed to things such as saving capital for business or saving for a major purchase such as a car.
Whether it's for an emergency or for upgrading our circumstances, saving 10% of net earnings is a must.
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