Savings – that age old word. Savings has existed from the dawn of time. The urge, necessity or ability to provide for a rainy day. Using that which you need now and saving the rest for later. The principle of deferred gratification. Withholding pleasure from yourself today so that pleasure can abound tomorrow. Modern economics today can be grouped into two main reasoning. Keynesian economics vs. Hayek economics. Keynes was a gentleman whose philosophy was to spend now to boost the economy. To indulge now because in the long run, we are all dead. It is amazing how modern societies have vastly adopted this reasoning, borrowing from Peter to pay Paul. All in the view that if we spend now, even if it means printing money out of thin air, that tomorrow will be better. Kayek on the other hand, was a gentleman who advocated austerity. To save for a rainy day. To conserve today, so the resulting savings can be turned into capital and invested. I support savings. While spending has brought about economic growth for mighty nations and perhaps for some families. I believe, that savings remains the road to wealth.
My advise for you then is to start saving. I am of no illusion as to how difficult it is to save but I implore you to agree to suffer today as you save, so that you can enjoy tomorrow. There are lots of retirement savings accounts, and banking products to keep your savings but a simple savings account will do. You will need to muster the discipline, wisdom and discretion not to touch the money while it accrues for 7 years. Convert the savings to capital after 7 years and use it wisely in your investments. (Sorry, I won’t give you investment advice at this point). This I believe is the road to wealth.
Let Pharaoh do this, and let him appoint officers over the land, and take up the fifth part of the land of Egypt in the seven plenteous years. And let them gather all the food of those good years that come … And that food shall be for store to the land against the seven years of famine… Genesis 41:34-36