Chapter 13
SAVING FOR THE ENTREPRENEURIAL JOURNEY
I learnt the concept of saving in one of Brian Tracy’s books entitled ‘No Excuses’. In this book he taught about the 60/40 savings rule, where you discipline yourself enough to learn to save 60% of your income and learn to live on 40%.
I also understood the importance of learning to spend what is left after saving as against the notion of saving what is left after spending or the worst case of spending before you earn.
I strongly advise entrepreneurs to adopt this principle especially when you are planning to commence your entrepreneurial journey with limited available cash.
The 60/40 principle or the 70/30 principle is a very powerful savings rule that can help you save enough money to jump start your entrepreneurial journey.
Denying yourself certain pleasures by saving the extra cash meant for pleasure is really worth it at the long run.
It is really sad to learn in the lives of many prospective entrepreneurs that their liabilities increase with any slightest increase in their incomes. From my own analysis, I strongly can conclude that to be a show of lack of discipline.
One of my teachers while I was growing up used to share these words with me and my team, ‘PAY NOW AND PLAY LATER OR PLAY NOW AND PAY LATER, THE CHOICE IS YOURS’.
Another of his favorite words were, ‘Sacrifice today’s pleasures for tomorrow’s gains or sacrifice tomorrow’s gains for today’s pleasure’.
This has all to do with how much of tomorrow’s best interest you have at heart. A conscious demonstration of self-discipline with regards to your finances is key to successfully commencing your entrepreneurial journey, sustaining it and winning on it.
It is important to note that there is no rule book that says your liabilities must increase at the slightest increase in your income levels.
Determine and decide well ahead of time before you commence your entrepreneurial journey to adopt the 60/40 or 70/30 savings principle as taught by Brian Tracy and learn to stick to it.
To help you achieve this, I advise you to open a separate savings bank account, where you deposit these savings until such a time when you have saved enough money to meet the demands of your entrepreneurial journey.