the first thing is that i can safely safe i have gone for almost 2 years without borrowing for consumption. the second thing is that we have a fund the we set up with my friends that has grown by over 75% in 10 months. Our target when we started was to be able to by property i.e stands or flats in five years. when we met for a review last week, that target at the current contributions and growth levels will be achieved in 3 years. if we increase contributions, in 2 years we would have bought our land to build , and these contributions are less than $100 a month.
On 10/20/10, Milton Jiri <[email protected]> wrote: > Yah, I like the statement that says you never have enough to save... that's > so true and interesting... > > So Simba, what have you managed to do when you have applied these > principles? How can someone wu is doing hand to mouth be convinced of this? > > -----Original Message----- > From: [email protected] > [mailto:[email protected]] On Behalf Of simbarashe wekwete > Sent: Wednesday, October 20, 2010 11:46 AM > To: tribewithavibe > Subject: Financial Discipline Part 2 and 3 > > Yesterday we talked about the first step which is Tithing which is te first > 10% of your income. > > today we shall go through steps 2 and 3 coz they are almost similar but > unique. > > Step 2 : Save - Long Term Investment (10%) > > The moment we talk about saving the first thought that comes to one's mind > is i do not have enough. my question to you is who has enough to save? > A long term investment is something that last for over 1 year. So the > principle here is putting money aside with the intetion of not using until > within the next year and/ or with the intetion of buying something that you > can use for more than a year. > We are all young and need a lot to start our own homes. it is a fact that > you can not have all you want at once so how do you then do it? > Examples i can give of meaningful things to save for are your education, > your wedding, a car, a house, furniture, kids school fees, a holiday at the > end of the year etc. > You might ask but how long do i save to buy a house? true it takes a > lifetime but the idea here is to develop a habit of saving for the future. I > will give an example of a building society that is giving mortgadges to buy > houses but you need to pay a certain amount upfront. > Many people applied but very few had the upfront fee. If u have money set > aside, u will be getting your mortgadge to buy a property. > Ask yourself what do you want to have in your house, how much does it cost > and start putting money aside for it. > > Step : 3 Save - For Emergencies (10%) > > examples of emergencies include sickness, death in the family, theft / break > in at the house etc. > We all have urgent needs that just pop up here and there and what a better > way to deal with these. > The good thing about saving for an emergency is that when it does not occur, > you still have your cash and you can use it to buy something. > In finance we call this self Insurance. it like getting an insurance policy. > the only difference here is that u manage your own funds and when there is > no emergency, you have all your money. > > Step 2 and 3 are very difficult but once you begin saving, you will begin > to see yourself at another level. it is easier to save and buy your TV, than > to get it on credit and pay the cash price plus interest. It is easier to > help at a relative's funeral from your own resources, than to borrow and pay > back from your income. > > the easier way to do this is just simply leave the money in a bank account. > You can go a step further and open a savings or investment account that > earns a bit of interest over time. You can even set up a fund as a group and > invest a lumpsum of funds thus earning more interest than you would get on > your individual investment. there are other ways of investing ad growing > money and these can be discussed later but right now we are dealing with the > foundation which is saving. > > Sometimes people think you are wealthy when they see your Plasma TV but > kungorongeka so. > > Step 4 is coming tomorrow and it gets hotter. > > -- > You received this message because you are subscribed to the Google Groups > "tribewithavibe" group. > To post to this group, send email to [email protected]. > To unsubscribe from this group, send email to > [email protected]. > For more options, visit this group at > http://groups.google.com/group/tribewithavibe?hl=en. > > -- > You received this message because you are subscribed to the Google Groups > "tribewithavibe" group. > To post to this group, send email to [email protected]. > To unsubscribe from this group, send email to > [email protected]. > For more options, visit this group at > http://groups.google.com/group/tribewithavibe?hl=en. > > -- You received this message because you are subscribed to the Google Groups "tribewithavibe" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/tribewithavibe?hl=en.
