Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ecclesiastes 11:2

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Investing Money According To The Joseph's Principle

Investing money according to the Joseph's Principle is what I call the idea of getting in the habit of saving your money regardless of where and how.

If you have a 401k, invest in it and start now. There is no better way for the beginning investor to get started than with a 401k.

Store away your money in a savings account, mutual fund, certificate of deposit, 401k, stock, or even a fruit jar in the cellar if you want. I don't care which it is, start by getting in the habit of saving money and do it now. Saving and investing money is your first step to financial security.

You will never be able to invest until you learn to save and put money back. So get started by saving, if I can do it you can. You can worry about the best returns once you develop the habit of saving.

This principle is taken from the Old Testament Biblical story of Joseph. Joseph told the Pharaoh of Egypt that there would be seven good years followed by seven bad years after interpreting his dream. Upon Joseph’s advice, Egypt stored up wheat and goods during the seven good years that allowed them to survive easily in the coming bad years.

This is a very simple principle that all should follow even if you are at the lower income bracket. Learn to put money back even if it’s just cents a day.

I have known people who make minimum wage and are investing money while others I've known make six figure incomes and don’t save a penny. Once again it's a lifestyle decision. You will have to sacrifice some of your lifestyle to save and invest.

Learn to put money back and you will eventually learn how to put more money back. Saving is extremely contagious once you get started and see your savings grow.

There have been surveys that have shown 50% of Americans plan on winning the lottery to pay for their retirement. That’s not sound money management. Hopefully you’re not one of those people, if you are practicing this form of wishful planning; you need to be studying this website intensely.

Saving for a goal is a great way to get in the habit of saving your money.  Short term saving goals can get you in the habit while rewarding you for your saving efforts.

Do not put this practice off any longer if you aren't building a financial nest egg. Investing money for your future should begin right away by starting to save some of your money and living by the 10-20-70 Rule.

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