Turner & Hernshow

Savings-The 10% rule

Always save at least 10% of your income.Consider any revenue, remuneration or monies you earn is 90% of your actual pay.This ensures that your spending considers the savings amount as a separate amount.

For business entities, it is crucial to open a savings account where at least 5% of your receipts are saved.The value diverted into this account is immaterial until your balance rises with time.

Budgeting and planning

Plan, plan, plan!Prepare a monthly budget and consolidate it to make an annual (12 month) one.Include expenses that require lumpsum payments (such as education fees, holidays and insurance)  and break these down to an acceptable period.These payments become manageable.

For business entities, this adds value to the end result.Periodic budgeting aides management to create targets for their revenue staff and cost ceilings for their administratiove or back end staff consequently affecting their bottom line favorably.

Foodstuff and beverages

One of the single largest expense of any individuals income is spent on the above.Meats, a delicacy for many, take up at least 60% of the cost any meal when you prepare it yourself or whenever you visit a ready meal centre such as a restaurant-and probably more if you prefer white to red meat.Therefore, alternate between vegetable and meat proteins.Vegetable proteins such as beans and green grams are healthy- and you get to achieve the same end result!

Remember, healthy food is always less tasty, less attractive due to the cooking methods engaged in includin boiling rather than frying in cooking oils.But such foods are more often than not cost effective.

Shopping-The disciplined purchaser

Avoid making purchases that you have not budgeted for.Avoid the urge to "take advantage"of sales and discounts unless the services or products were previously in your plans.When shopping, do not exceed spending more than 10% of your budget.

Lifestyle

Limit your entertainment expenses.Plan for outings and luxurious holidays.Fit these expenses into your annual budget to avoid ad hoc trips and escapades.

Investments

For individuals, avoid get rich quick schemes.Invest your savings in portfolio fund organizations with solid foundations such as institutions that are registered by your government and continually monitored by a government authority or body.For short term investments, fixed deposits and savings accounts with nominal interest rates offered are ideal.Long term investments include shares from the stocks and bonds market without expecting returns in a period shorter than two years.

For business entities, the same applies.Short and long term investments available are similar.Depending on its liquidity position, prudence should be exercised.

Time

Timing is everything;you cannot rush it either.

Centuries ago from Eygptian wall encryptions, to chapter and verse references in the Christian Bible, it has been proved time and time again that one should never rush to make financial plans or run a business entity without taking every aspect of one's personal or business financial decisions through a thought process.

For instance, get quick rich schemes and pyramids have resulted in financial blunders for many worldwide. "Sweet deals" have also not  faired well and only benefit clever originators of such grand projects.It should dawn on all who wish to prosper that the saying "easy come, easy go" is wisdom gained from mistakes made over the centuries and through generations.

In any case, every successful and financially stable individual or business in the world today has a similar story to tell - Rome was not built in a day. Take for instance Bill Gates, Sir Richard Branson and Warren Buffet, some of the world's top business moguls today according to Forbes magazine of USA.Their stories are similar.Each have slowly,painstakingly but successfully generated their wealth gradually.You can too.

South African World cup 2010 fever

Just before,and during the World cup (between 11th June and 11th July), football lovers will be inclined to spend without any planning for the love of this game.Soccer, as the americans call it, has caused reat financial woes - and disputes between spouses. Equipment such as flat screen televisions, state-of-the-art sound systems and some of the items purchased without much planning.Be careful and remember, these items shall reduce in price substantially after the World cup final.Patience will be a virtue.

Food for thought

1.The top fifty wealthiest businessmen and women coincidentally practice eight basic principles on wealth generation.

2.There are five proven principles of multiplying money you may use today that were in use centuries ago, including the Babylonian times when gold was used as a money medium (today, local and foreign currency is our medium).

Practice them.Your bank balance and wealth  shall grow.

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