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If there is anything that is difficult for the average Joe or Jane to do, it is saving money. And yet, saving is such an important habit that we simply cannot do without it. In my opinion, it is an indubitable fact that savings is the key to wealth. And you can take this simple fact to the bank.

So how exactly does the saving habit lead to wealth? Simple "tall oaks from little acorns grow". Follow these simple tips and before you know it, you have saved your way to wealth.

1) Save a part of your income
Whether you earn a salary or you run a business, resolve to save between ten to twenty percent of your income religiously. Don't ever use this money to pay any bills. You save the money and it remains saved.

2) Save unexpected windfalls
If you earn a salary, save your bonus, save you leave grant and save your thirteenth month salary. Save your tax refund and save the "no claims bonus" from your insurance company. Add this to the monthly ten to twenty percent and watch your money grow.

3) Save mega profits
As a business man, there are times when business is particularly good. Now, don't be tempted to go on a shopping spree with all that extra profit. Save it and you are on the path to wealth already.

4) Invest your savings
Now, this is the easy part. You have saved a considerable sum of money right? Congratulations! But don't keep all that capital idle in a bank account. Get your savings to work for you. Invest in the stock market and the money will grow even faster.

5) Seize opportunities
If you have saved money then you will definitely get sudden opportunities to make even more money. You can buy an ailing business and make a success of it (after due diligence of course) or, better still, you can buy into a thriving business as a partner. See? There's no way you would have been able to do this if you had not saved money.

6 Save the proceeds of your savings
This is quite obvious isn't it? First you save money. Your "saved money" gets you some interest which you re-save. You buy stock and from your stock, you get dividends and bonus shares which you keep saving. By now, it has become almost second nature to you and before you know it, you are rich thanks to the habit of saving.

So, I guess that's the illusive secret of wealth. It is so obvious and yet most people can't seem to take advantage of it. The secret is simply this; save, save, save and then invest. This is the key to wealth.

Learn more about this author, Emmanuel Osondu.
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