Saving Money Wisdom from the Ant and Grasshopper Story
On one beautiful sunny day the Grasshopper was singing and dancing when an Ant passed by carrying food to his nest.
Grasshopper said, “Come play, dance and sing with me.”
Ant said, “No, I’m saving food for the rainy season. Why don’t you help me?”
Grasshopper replied, “Why bother? We have plenty of food today.”
And the Ant went on its way and continued its toil while the Grasshopper kept on his merry happy go lucky ways.
My dad's ending version of the story is that the Grasshopper died of hunger when the bad weather came. My version is that the Grasshopper asked for food and shelter; and the Ant was generous to help. We can all come up with different endings; however, the basic theme is “Saving for days of need.”
When you get your allowance from your parents, or get paid from your summer job, or when you profit from your gig or sale, save portion of your money. Save. Save. Save. Make the habit of saving when that money is still small. Eventually it will get plenty over time. The keyword is HABIT of saving.
When you earn more money after getting a full-time job or being promoted or profit from your business, do not change your life style, and put the bigger portion of your money to savings.
Word of caution: Even if you saved more, do not come across as cheap and stingy to other people. Don't nickel and dime your friends and family. Don't be a person that I will do this for you, if you do this for me. People will avoid you. If you know how to save and budget money, you will become a better and balanced person. Here is the money saving guideline:
Lifetime Fund. This is the money that you will save and keep growing. This is the money you will use in your golden years to fulfill the dreams you have for yourself, your family, and your community.
Emergency Fund. There will always be oops and boo-boos in life. This money will prepare you for situations that will not put you in debt.
Tithing. This is your responsibility to return the portion of your blessing to your church and God.
Almsgiving or Charity. This is your responsibility to love your neighbor through your talent, time, and treasure.
Targeted Savings. This is putting off purchase until you have money to pay for which attributed to delayed gratification by resisting a smaller but more immediate reward in order to receive a better or more enduring reward later.
The rest of your money is for you to enjoy.
You can pick percentage depending on your goals but be consistent and discipline to stick to that allocation. My recommendation is 30 percent or more.
Let me end with these words from T.T. Munger, “The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.”
Next topic: Budgeting Money