I get upset realising that I don't have enough money when a good opportunity for investment comes or when a long-awaited sale arrives. Most frequently than not, I get gloomy contemplating that I don't have anything substantial in the bank. But this did not go as such for long. Though I'm not talking that I found an absolute solution, I consider it lucky to meet such a good approach.
I call this the holy 10 percent. It basically means saving up or setting aside 10 percent from each income or inflow of money you get. It's quite easy and anyone can start today!
Say you get a salary of 20,000 pesos, you simply set aside 2000 for your savings. This means that even if you just get a 200-pesos salary or allowance a day, you should be able to set aside 20 pesos for this purpose. Hence, it does not matter how small or big your income flow is. You only need to meet 10 percent and that's it. This is what Robert Kiyosaki, the author of poor dad rich dad, refers to as paying yourself first.
The truth is, most of us never reach a certain amount of savings because we never set aside money in the first place. Another known reason of failure is unwisely saving too much or in bulk. Depending on your control (which usually requires great amount of discipline), this could be fine. However, if you eventually feel drained and end up using the money after all, especially when "seemingly demanding" necessities arrive, then this is certainly not working for you. As you can see, this is the benefit of getting 10 percent only. It's really a small amount compared to the whole and in fact, you won't even notice the deduction.
But, being able to save up the 10 percent is only half of the story. You should have something to look forward to make it worthwhile. In short, you have to give it a meaning and purpose. Consider these scenarios:
Scenario 1: A dear friend came to you and proposed a business plan that you really think would take off. But unfortunately, you don't have enough money to invest at the moment and so your friend goes to another person that he could do the business venture while leaving you behind…
Scenario 2: You've been wanting to invest in stocks, but couldn't seem to find a way to save up for the initial investment (which is by the way 5000 pesos only). Or you might have really considered investing in stocks or mutual funds but you don't see yourself able to cope with the challenge of setting aside an amount each month.
The answer to all these scenarios is the holy 10 percent! And I think you're now getting the value of this. You don't really have to worry about anything. You just set aside 10 percent of money and consider it gone. It might be best not to call this savings. Just call it something else, perhaps the holy 10 percent! hihi. Just because you do know that it is an investment for the future - serves for a better purpose.
You can also expand this to three 10-percents. I do this, but it's up to you if you follow it. The first 10 percent, I devote it to my long term investments (the one we've been talking about so far). It could be stocks, mutual funds or regular savings. The second 10 percent goes to ideas. It could lead to a business opportunity. This goes for your wildest imaginations, which you think may profit onwards. Lastly, I set aside another 10 percent for giving or tithes. It's basically returning some of your blessings to the world just because you are so blessed! Awesome right?
I find these three 10-percents very fulfilling. Though it might be a challenge at first, you'll certainly get the hang of it. The secret is setting aside the 10 percent first thing whenever you receive a pay, unexpected bonus, other income, or even from gifts. Make it a priority. Following this approach, you will truly reach abundance and perhaps worry less about the future.