Saving Part of Our Salary
Financial freedom comes to the person who learns to save ten percent or more of their income throughout their lifetime.
One of the smartest things we may ever do for ourselves is to develop the habit of Saving Part of Our Salary, every single week. Businesses, individuals, families and even societies are stable and prosperous to the degree to which they have high savings rates. Savings today are what guarantee the security and the possibilities of tomorrow.
The first corollary of the Law of Saving comes from the book The Richest Man in Babylon by George Classon. It is to “Pay yourself first.”
Begin today to save ten percent of your earnings, off the top, and never touch it. This is your fund for long term financial accumulation and you never use it for any other reason except to assure your financial future.
The remarkable thing is when we pay ourselves first, it forces us to live on the other ninety percent and we will soon become accustomed to it. We are creatures of habit.
When you regularly put away ten percent of your earnings, you soon become comfortable living on the other ninety percent. Many people start by saving ten percent of their income and then graduate to saving fifteen percent, twenty percent, and even more. And their financial lives change dramatically as a result. So will yours.
Another way to accumulate savings is to take advantage of tax deferred savings and investment plans. Because of high and even multiple tax rates, money that is saved or invested without being taxed accumulates at a rate of thirty to forty percent faster than money that is subject to taxation. Self made millionaires, according to Dr Thomas Stanley’s book The Millionaire Next Door, are almost obsessive about accumulating their funds in assets such as real estate, self owned businesses and equities that increase in value without triggering tax liabilities.
Invest in company pension and retirement plans, 401(k) plans, IRA’s, Keough Plans, Roth IRA’s, Education Investment Accounts, stock option programs and whatever else has been approved by the IRS for long term financial accumulation. Make every dollar count!
Here are two things you can do to apply this immediately: First, begin today to put away ten percent of your earnings. Set up a special account for this purpose and treat your contributions to this account with the same respect as you do your rent or mortgage payments each month. Then become a lifelong student of money. Read the best books, take courses and subscribe to the most helpful magazines. Know what you are doing so you can always make intelligent decisions when you invest your funds.
“Remember, Success is Always Within Reach”
#terry ogburn #entrepreneur #Business #Business Development #Business Sales #business coach #business coaching
One of the smartest things we may ever do for ourselves is to develop the habit of Saving Part of Our Salary, every single week. Businesses, individuals, families and even societies are stable and prosperous to the degree to which they have high savings rates. Savings today are what guarantee the security and the possibilities of tomorrow.
The first corollary of the Law of Saving comes from the book The Richest Man in Babylon by George Classon. It is to “Pay yourself first.”
Begin today to save ten percent of your earnings, off the top, and never touch it. This is your fund for long term financial accumulation and you never use it for any other reason except to assure your financial future.
The remarkable thing is when we pay ourselves first, it forces us to live on the other ninety percent and we will soon become accustomed to it. We are creatures of habit.
When you regularly put away ten percent of your earnings, you soon become comfortable living on the other ninety percent. Many people start by saving ten percent of their income and then graduate to saving fifteen percent, twenty percent, and even more. And their financial lives change dramatically as a result. So will yours.
Another way to accumulate savings is to take advantage of tax deferred savings and investment plans. Because of high and even multiple tax rates, money that is saved or invested without being taxed accumulates at a rate of thirty to forty percent faster than money that is subject to taxation. Self made millionaires, according to Dr Thomas Stanley’s book The Millionaire Next Door, are almost obsessive about accumulating their funds in assets such as real estate, self owned businesses and equities that increase in value without triggering tax liabilities.
Invest in company pension and retirement plans, 401(k) plans, IRA’s, Keough Plans, Roth IRA’s, Education Investment Accounts, stock option programs and whatever else has been approved by the IRS for long term financial accumulation. Make every dollar count!
Here are two things you can do to apply this immediately: First, begin today to put away ten percent of your earnings. Set up a special account for this purpose and treat your contributions to this account with the same respect as you do your rent or mortgage payments each month. Then become a lifelong student of money. Read the best books, take courses and subscribe to the most helpful magazines. Know what you are doing so you can always make intelligent decisions when you invest your funds.
“Remember, Success is Always Within Reach”
#terry ogburn #entrepreneur #Business #Business Development #Business Sales #business coach #business coaching