INCOME, SAVINGS AND INVESTMENT

Income which may also be called earnings, salary, stipend, remuneration or paycheque may be very simple to define: “Money received, especially on regular basis, for work or through investments.” But the road to receiving income may be very tedious and sometimes nearly impossible. But with the right information and right application of such information, you will rest assured of a seamless income stream. But I like Wikipedia definition better “Income is the consumption and savings opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms.”

INCOME AS SALARY AND EARNINGS: Salary is money received as payment for work done as an employee of an organization. Also, note that an entrepreneur may decide to pay himself salary so as to enable him to manage his business meticulously and keep accurate records. Salary can also be called paycheque, Stipend, and remuneration

Earnings are not completely different from salary but I would like to say it includes money earned by rendering services like designing a website for an organization or money yielded by your investment, like dividends from a stock.

Kinds of income: 1. Passive income: otherwise known as your side income, this income is gotten from your side business (gigs). 2. Regular income: As the name sounds, is the income you get from your regular job.

This is just a preamble to income. Income as a topic will be treated on a future post.

SAVINGS: Saving is everything. If you just earn a salary and you don’t have any form of saving your life will perpetually remain in debts, you’ll never grow, you’ll never be able to invest.

Now, what exactly is saving?

Someone once said, “saving is life and life is saving.”

Your inability to save is your inability to live. Most people do not rise above their ability to save. As long as you are alive, put something aside for the rainy day. No matter how little, there has to be something somewhere called your savings. Take a certain percentage of every money you make or receive and save it in order to invest it and create the kind of future you want. “Your future is created today not tomorrow” Robert Kiyosaki.

Spending is an unrepentant enemy of savings so try as much as you can to cut down your spending, delay gratification if you want to save. Negotiate better offers if you want to save. Time is money so the money you save today will give you great value tomorrow.

You may be one of those finding it difficult to save. And while you’re reading this article right now, you may be a little skeptical about savings. I have an advice for you. As soon as that money comes in before you spend, take that part you intend to save and invest it. Look out for an opportunity to invest. Did you say the money is too little to invest? There’s always an opportunity to invest no matter how small your capital is.

“Savings means putting away a part of your income for investment or use in future.”

We will expound more in a future post.

Investment: investment is a very vast topic as it transcends beyond money to human development. Both money and human development investment are very crucial to your business life.

Investment: Human Development. Your mind is the seat of wisdom. And the bible says wisdom is the principal thing (Prov. 4:7). One of the reasons why you find it difficult to either save or invest is because of ignorance. Information is also very crucial to investment, therefore, you have to invest in yourself first before you invest your money. Gather knowledge before you invest. Knowledge gives power, especially when put into practice. “Wisdom is the correct application of knowledge.”

Buy books and read them, get materials, videos on areas where you are most ignorant, try to learn a little about everything and anything. “To be successful in life, you must know everything about something and something about everything.” In this day and age, vast knowledge is critical to your survival.

Investment: Money Growth. Saving is very good and paramount but investing is even better. Don’t keep money in the bank for too long, you may be tempted to spend, something will definitely come up that requires money. Inflation might also affect your money in the bank. Passive income generators are one of the things that should resound in your heart. The common definition of passive income is income you earn without being actively involved. This kind of income is ideal for workers and salary earners. Don’t depend solely on your salary. Don’t depend on your savings also, but invest and reinvest your savings.

Again, investment will be discussed in-depth in a future post.

Please feel free to drop a comment. Tell me what you think.