Financial Principles- Thoughtful Monday

Good morning every one here at Wealthy Affiliate. Greetings from rainy Uganda- Kampala my beautiful home.

I thought of sharing with you about these principles and pass them on to the younger ones.

Instilling Godly Financial Principles in our children.

The Jews teach thier children how to manage money wisely in order to grow wealth. They demonstrate to the Children using 5 Jars. Today we would call that a Piggy Bank or Home Bank. The Jars are labeled as follows: Tithe, Giving, savings, investment and spending.

They encourage the children not to spend every thing but through wisdom, Tithe 10%, save at least 10%, invest 20%, give 10% and spend 50%.

JAR 1- Tithe : 10%

Be responsible with money which does not belong to you. Tithe belongs to God. Therefore 10% of all your income has to be given back to God. Malachi

JAR 2 - Giving: 10%

*2 Corinthians 9:7 *Giving is an extremely important part of life. We need to teach our children to give to the less advantaged. Give to charity, Parents, This account could also be of help when you have to give towards functions, help someone who is in need, taking care of your old parents etc.

JAR 3 - Savings :10%

Proverbs 6:6-8. Go to the ant you slaggard. Consider its ways and be wise. It has no commander, no overseer or ruler. Yet it stores its provisions in the summer and gathers its food at Harvest

Saving money may sound obvious, but many people fail to save. Teaching children how to save when they are young helps them to become financially free at a later stage.

• The secret to financial success is to spend what you have left over after saving instead of saving what is left after spending.

• Identify those areas where you can make sacrifices . Cut down on non essential expenditures.

• Savings will enable you to spend on bigger purchases or Assets that you would never afford.

• Savings will help you to invest your money and earn interest or profits.

• Set goals for your saving. If you save for nothing, you will spend the money on nothing.

JAR 4 - Investment : 20%

Eccle 11:1 Send your grain across the seas, and in time, profits will flow back to you.

Teach the children how to invest properly and wisely

• when you get into Investment, have a long term view.

• Avoid Investments that promise you quick returns

• But divide your Investments among many places, for you do not know what risks might lie ahead. ( Diversification)

• Don’t start many things at the same time. Master one, then move on to another.

• Farmers who wait for a perfect weather never plant. If they watch every cloud, they never harvest. Never wait for a perfect situation.

• The greatest risk is never to risk at all.

• Invest with advice

• Don’t invest in unfamiliar business

• Avoid Investments with Astounding profits

• Help your children to invest the money they have saved.

JAR 5: Spending: 50%

Don’t make this your first and only jar.

Take care of your priorities and responsibilities .