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14.06.2019 Feature Article

Now that I have learnt to save money, what next?

Now that I have learnt to save money, what next?
Now that I have learnt to save money, what next?
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...I found the road to wealth when I decided that a part of all I earned was mine to keep. These were words encrypted in the pages of "The Richest man in Babylon," by George S. Clason. Published in the 1920s, it is still one of the best books that teaches modern investors about their finances. It has sold millions of copies globally. It's one of those books that when you encounter, you slap yourself hard and say, "I wish I came across this long before." I just witnessed a friend do that!

Saving a part of all you earn is just the foundation to becoming wealthy, but that is not all. Savings alone is nothing until it earns extra money and again an extra and extra. Put in the words of Benjamin, "if you would become wealthy, then what you save must earn, and its children must earn." Every man must learn to earn more with his savings. Savings are not for consumption or affording liabilities. They are for accumulating assets. Assets brings you income whiles liabilities does the opposite; they take from you. When I purchase a car that gets to work for me as a cab and as such brings me income every day without my energy and efforts, permitting me to go on with my daily activities, it is an asset to me. On the other hand, when I purchase a car for my personal use, I've got to pay for fuel as well as maintenance as long as I will be using it. This is a liability; it takes money from me.

True wealth is embedded in assets. The more assets you get, the more money you make. Don't purchase liabilities with savings. Rather, get assets, and then later you can get for yourself liabilities with earnings from your assets.

Start saving today, identify those things you could invest your savings into which will earn you more money; they are called assets! Delay purchasing liabilities as much as you can. There you go; wealth has opened its arms, full of smiles, readying to embrace you.

By Isaac Eli Asamoah