1/10th Of Your Income Makes You Rich
After rereading 'The Richest Man In Babylon' I felt there were some concepts that could you be firmed up and revisited. Most of the ideas in the book are things that most people already know, but the book does a nice job of putting the ideas into unique context. One of the leading thoughts is to save 1/10th of your income. This means that you pay yourself first and then live off of 9/10th's of your money. This really is not a difficult thing to do. If you are using every dollar you make now in order to pay expenses, then you are doing something wrong. Look really hard at what you spend each month and see what can be cut out. I bet you will find a lot more than 1/10th of your income that can be taken out and saved. Once you are able to set aside that money, you will want to find a secure investment vehicle to place it in. This is something that you spend a great deal of time and energy researching and understanding. When you locate that vehicle, you let your money compound over years and years. As you grow older the compound interest on the money you continue to save will make you very well off. If you don't believe me, take 1/10th of your current income, plug it into a compound interest calculator at say 10% and see what number pops out in 25 years.
Ian Walsh215.839.3271
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