A Small Amount Can Be Huge
By Saghir Aslam
Rawalpindi, Pakistan

(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live with dignity and fulfill their moral obligations towards charitable activities)
And whatever is left over, which is usually nothing, is what we save. “Instead, pay those household bills and then budget your savings, moving nonessentials to the bottom of the list. “We don’t all have to have the latest Smartphone or the 60-inch LED television”. But it’s not just those big – ticket items that can be budget-busters. “Buying coffee out every morning will cost you well over $ 1,000 a year.
Setting aside enough cash to cover expenses for three to six months in the event of an emergency, such as a job loss, is no longer a sure-fire rule of thumb. The job market is now less predictable and there is less certainty that individuals looking for work will get hired quickly or earn more than they did previously. Three to six months may not be enough, having one month of expenses covered is better than nothing.
Save systematically (the earlier the better to take advantage of compound growth. As an example Aisha age 23, invests $5,500 a year for 10 years in a traditional IRA. At age 65, her investment will be worth $ 363.418, based on a consistent return of 5%. By contrast, Munir starts funding his Traditional IRA at age 40, putting in a total of $143,000 over 26 years until he’s 65. His investment will be worth $295.180- about $68,000 less than Aisha earned even though she invested $88,000 less.
“A small amount can be huge here, even if you are saving $10 a week or $ 50 a month or $ 200 a month”. It’s safer than betting on an inheritance from your parents, who may incur unexpected medical bills or give their money to someone else.
Secret is number one to start early earlier the better. The earlier you start sooner it will start to accumulate. Sometimes it is difficult for us to predict look in to the future what this little money as it grows to a lot will do it for you.
We always procrastinate, post pone to next month next month next year. Well after I graduate. After I get married my suggestion forget all that start now start today. Next excuse people make up I can hardly make ends meet how can I save. You must be out of your mind advising. First if all I do not suggest any thing that I have not done. Say you do not have money to save.
Check how much a week and month you spend on fast food?
How much on soft drinks?
Are you those necessities?
Matter of fact you are better off staying away from both of them.
You will be surprised once you analyze your earnings. Items you could reduce your spending or you could cut out altogether. I guarantee you will be delighted with results. Try practicing this for 90 days good chance you'll I will get hooked up on this and if you have children you might even start motivating them what a great news and fantastic security and great future for all of you.
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr Aslam does not have anything for sale.)

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Editor: Akhtar M. Faruqui
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