A couple years ago, I read a book called The Richest Man in Babylon by George S. Clason, and a few months ago I read another book called The Wealthy Barber by David Clifton. Both the books are about personal finance. They both talk about certain processes that are required for an average person like you and me to become wealthy. And, both the books recommend that you start it with the 10% rule. So, what is this 10% rule? By the way, I want to let you know that my wife and I have been following this 10% rule for a few months now, and its been working great for us.
The 10% rule is very simple. Every time you get paid, take 10% of your income and save it aside. Put it into your savings account, where your money creates more money for you in form of interest. I understand that most people live paycheck to paycheck and cannot afford to put 10% aside every paycheck. However, most people also spend money on things they don’t require and get into huge debt. At the beginning, it might seem a lot like putting 10% of your paycheck aside when you could be using it for other things but eventually you won’t even notice the difference. Your savings account will get bigger every payday. Within a short period you will have accumulated a small fortune.
This rule has worked for us, and I am sure it can work for you too. You just have to be disciplined about it. One of the best way to do it is getting the process automated. So, the money is directly transferred to your savings account rather than you manually putting it. If your company offers you direct-deposit, have them put 10% of your paycheck into your savings account. If you have a retirement account, put 10% of your paycheck into retirement account. If you get paid cash, immediately, put 10% of that money into your savings account.
You can create a fortune. You don’t have to be dependent on anyone for retirement. One of the concerns people have is I don’t make as much money as a lawyer or doctor would make. They have a higher chance of becoming wealthy, as opposed to me. No, they don’t. Because, if a lawyer and a doctor are spending everything they make they are broke at the end of each month. It’s not how much you make, it’s how much you keep. If you are saving from what you make, your expenses are less than your income which makes you richer.
Apply the 10% rule in your life and start your wealth building process. Begin it instantly. Do your research. Find out where you can get the most interest and you money will be safe. You can do it. You can be wealthy.
Hope this helped. Looking forward to reading your comments.
Respectfully,
Mayur
Tags: Finance, Money Management
