Brian Tracy explains how to build wealth by saving at least 10% of your income. Start at 1% and work up, put it in a dedicated account, and let compound interest work: $100 monthly at 10% annual returns grows to over $1 million by retirement.
Questions this video answers
At least 10% of your income.
Start by saving 1% of income, then raise to 2%, 3%, 4%, etc., until reaching 10% (or more).
Saving $100 per month invested at an average annual return of 10% will be worth more than $1 million by retirement.
Chapters
Become a money saving expert by paying yourself first. Money is hard to earn and easy to lose. Guard yours with care. Brian Tracy W. Clement Stone once said, a part of all you earn is yours to keep, and if you cannot save money, the seeds of greatness are not in you. Resolve today that you are going to save and invest at least 10% of your income throughout your working life. Take 10% of your income off the top of each paycheck and each time you receive one and put it into a special account for financial accumulation. The fact is that if you save just $100 per month throughout your working lifetime and you invest that money in an average mutual fund that grows at 10% annually, you will be worth more than $1 million by the time you retire. This means that anyone, even a person earning a minimum wage, if he or she starts early enough and saves long enough, can become a millionaire over the course of his or her working life. Developing the lifelong habit of saving and investing your money is not easy. It requires tremendous determination and willpower. You have to set it as a goal, write it down, make a savings plan, and work on it all the time. But once this practice locks in and becomes automatic, your financial success is virtually assured. Practice Frugality Frugality Frugality in all things. Be very careful with every penny, question every expenditure, delay or defer every important buying decision for at least a week, if not a month. The longer you put off making a buying decision, the better your decision will be and the better price you will get at that time. A major reason that people retire poor is because of impulse buying. They see something they like and they buy it with very little thought. They become victims of what is called Parkinson's Law, which says that expenses rise to meet Inc. This means that no matter how much you earn, you tend to spend that much and a little bit more besides. You never get ahead and you never get out of debt. But you don't have to be a victim of Parkinson's Law. If you save 10% of your income, start today by saving 1% of your income in a special savings or investment account. Put it away at the beginning of each month, even before you begin paying down your debts. Live on the other 99% of your income. As you become comfortable living on 99%, raise your savings level to 2% of your income, then 3% and 4% and so on. Create a savings plan that you are comfortable with and then commit to it. Within one year you will be saving 10% and maybe even 15% or 20% of your income and living comfortably on the balance. At the same time, your savings and investment account will start to grow. You will become more careful about your expenditures and your debts will begin to be paid off. You will become a money saving expert. Within a year or two, your entire financial life will be under your control and you will be on your way to becoming a self made millionaire. This process has worked for everyone who has ever tried this savings plan. Try it and see for yourself. Here are two ways to become your very own money saving expert today. First, begin today and put away 10% of your earnings. Set up a special account for this purpose and treat your contributions to this account with the same respect that you do your rent or mortgage payments each month. Second, become a lifelong student of how to save money. Read the best books, take courses and subscribe to the most helpful magazines. Know what you're doing so that you can always make intelligent decisions when you invest your funds. Open a special account for financial accumulation today. Make a deposit in this account no matter how small. Then look for every opportunity to add to this account. Begin to study money so that you understand how to make it grow. Read books and magazines by experts on the subject. Become a money saving expert. Never stop saving, learning and growing until you become financially independent. Now we'd love to hear from you. So our question today is do you have any money tips or savings techniques that have worked for you? Leave a comment below and we'll be sure to follow up with you. Thanks for watching and as Brian says, if you want to change your future, take action. And take action now.
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