Your savings rate, not your income, determines how fast you can retire. The higher percentage of money you save each month, the sooner you can stop working. Track it, increase it, and financial independence becomes possible.
Now, I can promise you, you've never heard of this. We now measure your savings rate. What is a savings rate? Great question. So let's pretend you had $10,000 in income, which we wish, and you actually were spending $8,000 per month. So you're $10,000 coming through, your $8,000 going out. That means you have $2,000 surplus or savings. That's a savings rate of 20%. And so what we've got is this unbelievable calculator which can actually predict when you can retire. And that all relates back to your savings rate. The higher your savings rate, the faster you can retire. Now, this is an actual fact. If you can save 65% of your income, you will not have to work ever again after 10 years from now. So if you save 65% of your income, you have to work for 10 years and that's it, you're out, you're done, you're finished for life. That's huge, though, to be able to save 65% of your income. I mean, imagine banking 10 grand in income and saving $6,500 that every single month. It's not easy by any means, but to not have to work for the rest of your life after 10 years, it's a pretty appealing opportunity there. So that's what a savings rate is. We track it, we measure it, and we want you to be conscious of it. Because if we can have your savings rate increasing every single month, that means your debt is coming down faster and you're closer to retirement. The higher your savings rate is, the quicker you retire, bottom line. So we're going to be focusing on this. We want you to be focusing on this. And we always, always really reinforce with you what gets measured, gets done. And as soon as you're being weighed in by a personal trainer at the gym and you're trying to lose weight, you're then conscious of your weight. You're conscious of what's going to affect your weight, and that's the same as a savings rate. Now that you know you're being weighed in or measured, you're now going to be conscious of your savings rate. You're going to be conscious of everything that affects that savings rate. So please pay a lot of attention to this figure. You're going to be receiving it every single 90 days on your reports, and it's going to help you determine how quickly you can retire. So the name of the game is get that savings rate as high as you possibly can. Good luck.
