MONEY MANAGEMENT IN THE HOME 4

Like we said last time the issue is not whether money comes into the home in terms of income or receivables, the issue is how we manage what comes in. The difference between poverty and financial freedom is based primarily on money management.

It has been proven that with diligence and discipline in money matters, one can become a millionaire over time. So when people say, they are poor or in need because of what they earn, it is actually a problem of discipline rather than cash flow.

No matter how small your income is, you can through information and diligence build for yourself surplus that will take you out of poverty.

Having said that, today I will like to set before the concept of savings as the bedrock for financial freedom. It was Dr. James Iruobe who said savings is the cornerstone of financial freedom. If you do not save money, you can never take advantage of the opportunities that will come your way to free yourself from poverty and lack.

Unfortunately, like I said last time we have been brought up to think that spending money is what brings satisfaction. We have a spending mentality that makes many of us live above our means. If you could only take a piece of paper and calculate since the beginning of the year all that you have spent on frivolous items, it will amaze you how much has gone down the drain.

The fist step is to include in your family budget savings. You must agree with your spouse that a particular percentage of your collective income must be saved. I will like to suggest a minimum of 20% following the Pareto principle.

Such savings should be in a joint account with the mandate that two of you will be joint signatories to the account. I do not for one subscribe to a joint account where any of the partners can withdraw without the other for obvious reasons except in some peculiar cases.

Every couple must as a matter of planning for their children's future open savings account for their children where monies are deposited periodically for them until they attain unto the age where they can run the accounts themselves.

Any man or woman who does not save is susceptible to financial shame or disgrace. That will not be your portion in Jesus name.

Stay blessed

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