What you earn vs What you keep

Some see the act of saving money as something done by people that are 'worried' about the future. Others see it as a way to 'prepare' for the unknown. Both statements hold the truth depending on how you choose to see them.

The obvious fact is that savings is a very important pratice. There comes a time when what you earn won't be up for discussion. Nobody will be focused on how much you earn. Instead, the focus will be on how much you keep.

Do this as an exercise. You know what you earn. Check if it has a reasonable alignment with what you keep. Does it?

Every time I hear of how much people have to pay for tax in some parts of the world, I kinda feel grateful that I'm in a country where our taxation system is not as enforced as how it's done in other parts of the world.

What we pay here are mostly indirect taxes and commodity taxes. We also have income tax and some other deductions which just happen from the money in our bank without explanation, but they are not very significant. Taxation aside, rents and other utility bills in addition to grocery expenses usually count as the major areas where we spend an awful lot of money.

By the time you spend a quid here and there, you will realize that the fat paycheck you received has already reduced so much. This is where it becomes obvious that no amount of money is ever enough. This is also where the importance of saving money shines brightly.

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Now, you genuinely want to save. How do you go about it?

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You know, if you are in a country where taxation is serious, you will still have to pay those taxes. If you live in a rented apartment, your rent will always be yours to pay. If you have a mortgage, you sure have to make provisions for the payment.

Just because you want to save doesn't mean that your expenses will fly away. In this case, what works is to cut down on those expenses. Work with a scale of preference to know the things that are important to spend on.

Also, have a budget. In that budget, allot a certain percentage of your earnings as savings. It will help you massively in the future.

Savings is never easy, but it's a habit. Even when it's hard, never give up. Try to save consistently. Little by little.

Thanks For Not Missing Any Full-stop Or Comma

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