100% Savings Formula to build Wealth

Saving money is a habit and so is spending. While most of us are already "masters" in spending, we need to understand that saving bears equal weight with spending and our saving habits can determine whether we are ready to accumulate wealth. When one receives income from a job or salary, a lot of people are using the wrong savings formula. How about you, what is your savings formula? Here are 4 savings equations and see which one is yours.

Calculate your way to wealth
Calculate your way to wealth
(1.) Income - Expenses = Savings

After receiving income, majority of your funds are then budgeted and spent on your expenses including but not limited to daily expenses, food, clothing, transportation, bills: water, electricity, phone bills, mobile loads, schooling, vitamins and/or medicines, lifestyle, travel, gadgets, and the list may go on and on. And after all that, whatever is left is for savings.

Question: does this formula work? Most the time, there is nothing left to save!

(2.) Expenses - Income = Savings

This formula is what I believe the worst formula in saving money. Before receiving income, you already spent money through credit cards or loans. This is a very dangerous formula because there may come a time that after paying all debts, nothing is left not just for saving money but also for your daily expenses and may require you to go into more debts.

(3.) Income - Savings = Expenses

This is the better formula. Again, saving is a habit. Unless we automatically set aside money for saving, our spending habits will always prevail. Saving is a decision, and regardless how much amount you set aside, the act or "discipline" of saving money will create the habit that will eventually lead us ready in creating wealth.

Bro Bo Sanchez - IMG Mentor
Bro Bo Sanchez - IMG Mentor
 (4.) Income - Tithes - Savings = Expenses

This is the best formula. 100% Income less 10% Tithing, less 5-20% Savings equals 70% Expenses. According to the Bible, our tithe is our love percent, the percentage we give back to God for the blessings we received. This formula just works in miraculous ways: the more you give, the more you receive.

Objection: This is a formula that is very difficult to follow. Income is not even enough for all the expenses.
Truth: Income will never be enough because there will always be reasons to spend. Saving is again a decision, a discipline. Everything hurts the first time, just continue doing the habit, then you'll be amazed how powerful this savings formula is.

Question: Why only give 10% to God and give 20% for your savings?
Answer: So that when the 20% savings and investments reach maturity, by the time we retire, we can still continue to give even when we no longer have income from our job or business.

According to Brother Bo Sanchez, give 10% for eternity, 20% for maturity and 70% for the family. And that for me is the best savings formula.

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