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Starting Now, And Every Week, Place 25% From Your Income Sources Into Savings

6 January 2010 1,715 views No Comment

Starting this week, and each subsequent week, place at least one-fourth of your income into a savings account. This savings account is not to be used for anything except saving and building your wealth. You will later be reallocating some of this money into various other interest-dividend-or-capital-gaining instruments (staggered with some for best returns) for a well-diversified range of security and returns on your money over time. For now, just open the account and start feeding it every week. The more you contribute the earliest, the better your returns will be from that account.

You must NOT be tempted to “borrow” from it with the intention of replacing and replenishing the amount you remove. A good trick is to set a floor amount that you must never touch and then keep raising that floor as the account grows. For some people, this will be a big challenge to discipline yourself every week, or every paycheck, to part with 25% of your income; some of you will not have the current situation to allow for this practice and will think there is not any free cash that you can set aside. In the coming months, it will be revealed where to find extra money to build a healthy savings. No matter what your circumstance, this practice of weekly and regular saving must never stop. The more your financial situation improves, the more your percentage amount that you place into the savings account (and the frequency) should increase.

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