What I Will Have to Give Up to Save and Invest 10% of My Income

Business essay #6

For my business course this week I have been reading The Richest Man In Babylon which is a book of investing and money handling principles that was written in the early nineteen hundreds. One of the most central pieces of advice in the book is to save at least ten percent of your income every pay check and make the money work for you through investing. In this essay I will tell you what it will cost me to save ten percent of my savingsincome.

I don’t really have an income. I do work during the summer but right now I am not earning money. So I don’t have to worry about saving during the winter. I don’t spend much of what I make. I put around fifty percent of it in a savings account and the rest in a checking account. I can spend the money in my checking account whenever, but I do my best to keep buying to a minimum.

Right now saving money is not a big struggle, but it will probably be much harder when I have a regular income, and expenses I have to pay. The cost of saving money as a teen is minimal so I intend to make it a habit to save regularly whatever I earn. This will become a habit and it will be second nature to save money before doing anything else when I have to worry about bills and other expenses.

The way I see it, it doesn’t  cost me much to save. I am practicing not impulse buying, which is both a cost and benefit. The cost of building this discipline  is giving up the individual things that I want to buy, but the benefit is the ability to give up those niks and knacks as a matter of habit.

I am starting to saving now, when the cost of saving is low.

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