Accumulating your first million pesos is a worthy challenge for anyone who desires to be a millionaire. You are in the Philippines, a Filipino, employed in a company that gives you a salary of 10,000 to 15,000 pesos monthly. How do you go about building a one-million-peso bank account? This article offers you an answer.
Accumulating your first million pesos is a worthy challenge for anyone who desires to be a millionaire. You are in the Philippines,
a Filipino, employed in a company that gives you a salary of 10,000 to 15,000 pesos monthly. How do you go about building a one-million-peso bank account? If you need the answer, this article is for you.
Desire to become a millionaire
One of the most important lessons I learned from reading the book "The Richest Man in Babylon" is this: Preceding accomplishment must be DESIRE. The book also says that our desires must be strong, definite and simple. An example will be to accumulate one million pesos in savings within 25 years.
Indeed, anyone can wish to be rich. To work for it, to really take action and to be persistent in achieving this dream is altogether a different story. One thing is certain, however, be definite with your desire
Organise a savings plan
Next logical step after being definite with our desire is to make a PLAN of action. Enter into a written agreement with yourself confirming your desire. Create something like a Promise to Save statement. The following is how I wrote my Promise to Save Statement:
I, Marginal Investor, hereby promise myself that starting this month I will work at least 4 hours a month or more for myself because I deserve it. Therefore, I promise that I will start saving 2% to 10% of my gross income no later than October 2007.
Act in accordance with your savings plan
Here is how we express our faith that the thing we desire is attainable. We take ACTION. And where shall the money come from? We said in the beginning of this article that we are employed.
Hence, we have a stream of money, a portion of which can be diverted to our savings plan. It is very much like the farmer diverting a portion of the water from the river to irrigate his farm, the source of livelihood for himself and that of his family.
But then, growing our savings into a substantial nest egg is a function of investment. This, however, will be the subject of my other article on investment. Besides, we are now getting ahead of the story. So going back to our savings program, what now?
Let me share with you another very important principle I learned from the same book I mentioned above in relation to implementing our Promise to Save Plan when confronted with the demands of our day-to-day financial obligations: A part of all you earn is yours to keep. This is, I believe, is a strong foundation for building our material prosperity and success.
The Triangle
Therefore, these steps completes the triangle of conditions for the attainment of what we desire, the manifestation of our idea. We desire, we plan, we act. Saving money to fund our investment goal is only the beginning of our quest for financial freedom. From here, we must move forward and upward to the next level: INVESTING.
