I am sure you have heard the phrase “Save 10% of all your income” however, the sad reality is that most individuals are not saving any of there income at all!
According to the United States Census Bureau, the average american savings at age of 50 is only $43,000. That is a farcry from where individuals should be if they had applied the phrase above…10% saved.
Let’s do a little math:
Joe works for 20 years in corporate america from the age of 30 to 50. His salary is at $55,000 per year. Using the average income of course. If Joe applied the 10% rule for those 20 years he would have $110,000 saved and that’s before compound interest!
Add compound interest @ 8% compounded monthly, Joe would be at $269,771. Not too bad I might say.
Bottom line, people cannot afford to not be saving at least 10%! We all know that but let me introduce you to a twist on the familiar concept.
Kevin O’Leary’s Secret 10
Mr. O’Leary suggests a person put aside 10%, no “news” there but he has one KEY distinction.
Keep it Secret! No one should no about these savings, not even your spouse. That way you are not persuaded or convinced to touch the savings. It is for you and your future!
That is a genius approach to your saving! Keep it private to reduce temptation of spending YOUR cash.
It’s just a little bit different from the traditional rule however, it provides huge returns for building your nest egg.
So here are 2 questions for you.
- Are you saving 10% of your income?
- Do people know about your savings?
If you answered no to the first question, it’s time to take a closer look at your finances and possible reduce expenses, taxes, and debt. You can check out some of my other blogs for those tips.
If you answered yes to first and second questions, it’s time to zip it and keep quiet on your savings and have the piece of mind knowing your money is sacred.
Lastly, if you answered yes to the first question and no to the second question, then it’s time to queue up the dramatic Secret Agent music!
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