IT’S NOT WHAT YOU EARN…IT’S WHAT YOU KEEP!
Guest Post By Karen Y. Jefferson
Another Chapter on “Pay Yourself FIRST.”
You will earn a fortune in your lifetime. No matter what your annual income is, a tremendous amount of money will pass through your hands. Even if you only earn the Federal Minimum Wage for a 40 hour work week, in a year you will earn $15,080. If you work from age 18 to 68 that would be 50 X $15,080.00 = $754,000.00 which is a little over $ ¾ million. If you earn $30,000.00/yr for 50 years you will have earned $ 1 ½ million.
Pretty darn amazing isn’t it! But it is not what you earn, it is what you keep that keeps you out of poverty. How are you doing so far?
Figure a rough estimate of the money you’ve earned so far by taking a yearly average and multiplying by the number of years you have worked. Now look at your savings account. How much have you saved and what percent is that of your earnings? Or go to the social security site or local office and ask for a copy if your earnings which will be exact. (It’s a good idea to suggest they send you a yearly report on your earnings so that you can be sure your social security is being reported correctly.)
Even if you made minimum wage for 15 years that would be:
$15,080.00 X 15 yrs. = $225,200.00.
If your savings account has $5000.00 in it, divide $5000.00 by $225,200.00 = .02 or you have saved only 2%.
If you have saved 10% of your $225,200.00 minimum wage earnings for 15 years you would have:
$225,200.00 X .10 = $22,520.00 or close to $ ¼ million dollars saved and with interest and earnings you would most likely have reached $ ¼ million in just 15 years.
If you save 10% of your minimum wage for 60 years:
$15,080.00 X 60 years = $740,000.00 X .10 = $74,000.00 or close to $ ¾ million and with earnings on those NEVER TOUCHED savings you would have more than $ ¾ million.
I want to suggest that at some time soon you read the book, “The Millionaire Next Door”.
Look at your savings account again. Are you doing better than a minimum wage earner? Let this blog show you the way in easy to follow steps.
Most Americans will retire in Poverty. Most will live only on Social Security which does not keep up with inflation. Many of them have worked hard all their lives, just like you are working now. What Happened?! What have you actually done to prevent being part of this statistic?! Remember, the millions of people who are part of this statistic didn’t think it could happen to them. No one intends to have their financial goals slide. It just happens. BUT if you just follow the simple ideas and plans offered in FreeFinLit101.com you’ll never be part of this statistic.
Which of the following is stealing away your financial security and freedom?
- Lack of Planning?
- Lack of Knowledge on Ways to Save and Protect Your Hard Earned Dollars?
- Depending on Someone Else?
- ALL OF THE ABOVE?
Enough said about the problems. This FreeFinLit101.com BLOG is about solutions for you, how to avoid the mistakes, and how to get started now making your money work for you.
“Make your money work for you.” I can still hear and remember those words my friend said to me one morning when we went out for breakfast. When it came time to pay, I started to get my money out of my wallet, and my friend said, “Put your money away. I’ll pay for breakfast. Your are still working for your money. My money works for me!” Yes, I was still working to have an income, but my friend, at age 55, was retired with money invested and working to bring in income. I knew right then that was what I wanted for myself.
I started to look as myself as the employer of my income. The dollars I earned were my employees. I owned my own business, and just like you, if you owned a business, we can’t afford to let our employees sit around and do nothing. Nor can we let our money sit around and do nothing either. Our money is our work force. Get yours working for your future!
The next FreeFinLit101 Blogs will cover:
- PUT YOURSELF AT THE HEAD OF THE LINE.
- YOUR “DON’T YOU DARE TOUCH FUND”.
- COMPOUND INTEREST MAGIC.
You might enjoy review in depth in the July 25 Common Sense Blog the topics below:
- PAY YOURSELF FIRST at the first of the month, before you pay anyone else, write a check to your savings account for 10% of your income.
- ADJUST YOUR PRIORITIES and don’t spend money on things your really don’t need and manage the money you do have.
- BUDGET and just don’t spend as expenses just come up or you will have too much month left at the end of the money.
- ADJUST YOUR LIFESTYLE because you can’t have everything.
- EARN ADDITIONAL INCOME by considering part-time work for all family members.
- AVOID THE CREDIT TRAP by paying off all charges at the end of each billing period to avoid paying much more for your purchases that they originally cost you, or you will wind up only paying interest each month and never getting out of debt to the credit card company.
Subscribe or leave a comment below let us know what you think?