If you don't have savings you are not safe. In Genesis 41, Pharaoh, king of Egypt had a dream. In his dream, seven cows—scrawny and very ugly and lean swallowed seven fat and sleek cows (Genesis 41: 18-19). Again, he saw seven healthy heads of grains swallowed up by seven thin heads of grains (Genesis 41:22-24). In interpreting this dream, Joseph told the king that the dreams represented two seasons—season of plenty and season of scarcity. He proffered a powerful solution that is now the secret of wealthy peoples and nations. He gave the king this very simple solution—save 20% (or one fifth) of whatever you get in the season of plenty (Verses 25-36).
This is what financially successful people do—they save! Saving is keeping aside part of your income or earnings for future purposes. This set-aside portion can be used for investment or anything that will be of long term benefit to you. You need to understand that in life you cannot eat your cake and still have it. If financial independence is your dream, saving must be your habit. John Tyler says, “Wealth can only be accumulated by the earnings of industry and the savings of frugality”. Financial success does not listen to the theory of luck, it follows principles, one of which is the law of saving.
The 10—10—80 Principle
If you are just beginning your journey to the world of financial independence, this principle will help you seriously. This is how it works:
1st 10% -- Tithe (or any charity you believe in)
2nd 10% -- Savings
The Remaining 80% -- Your Upkeep
This is where many people begin. You need to discipline yourself to do it. Whatever eighty percent of your income cannot afford, is not yet for you—ignore it for now—do without it.
“A simple fact that is hard to learn is that the time to save money is when you have some.” —Joe Moore
From The 32 Unbreakable Laws of Money