How Much Money Should I Put Aside For My Future Self?
Oct 06, 2019
So let me tell you that I have some news. I am writing my next book, and as I write, so many ideas come up that I just had to stop and write this blog.
I cannot stress enough on putting money aside for the future YOU. Unfortunately, and I have fallen into this pattern too in the past, we leave this for later or another day.
Today, I am going to give you a few ideas on what to do, so you can set money aside and set yourself for financial independence.
Let's get real...what matters is NOT how much you make, but how much you spend and on what.
When you take a look at your income and then take a look at your lifestyle, are you wishing for a different lifestyle?
If you are, then you have to watch what you are spending your money on, maybe spend a little less instead, and pay yourself first. The other option to get a different lifestyle is to make more money, and put that additional money on...you got it, paying yourself first.
The reality is, neither option is a wrong choice; it is on us, to attract what we want into our lives. So today, I am going to ask a few questions that you might have asked before, and if not, then you should ask yourself about paying yourself first.
"How much should I pay myself?"
As a rule of thumb, your very first hour of work in your day is to pay yourself. These words should have been taught to us since we were five years old or since we got our first allowance. Unfortunately, I can bet, your parents didn't know this, and if they did, they didn't teach you about it.
So if you make, for example, $30 an hour, and you work on average 20-22 days a month. At least $600 should go to the future. If you make $20 an hour then $400 should go to paying your self first and so forth.
$30 x 20 = $600
$20 x 20 = $400
I am sure that you would like to know where the money for the other hours of your workday should go to, well, let's chat! Just click on this link, and we can discuss that.
For now, commit to paying yourself first by taking the money of your first hour of work and not spending it on anything but yourself.
"Now I have to ask, where is that money going right now?"
Another rule of thumb is to have at least ten times your income. Here is the goal you should have by paying yourself first: to have ten years of your annual salary. How much do you have right now? Do you have ten years of your annual income?
This is why paying yourself is a long term goal, not a short term goal.
Now, having ten years of your income is not only taking into consideration what you make but also, what your money grows into. That where the third question comes from...
"Ok, Sara, I am going to pay myself first, but where should I put my money?"
This is the most crucial part of this blog. There are many potential places that you can put your money.
The most common ones are 401k, IRAs, Roth IRAs, and these accounts could be an excellent place to put your money. However, you have the risk of losing money if the market goes down or suddenly crashes like it did in the past.
- What if I tell you that there are other options where you don't have the risk of losing it in the market.
- Also, what if I tell you that there is a type of account that you don't have to pay taxes on the growth of your money?
- And finally, what if I tell you that you can have access to that money at any time, instead of having to wait till you are 59 1/2?
Here is a book recommendation that I have for you, and by the way, I don't make any money on you buying it.
However, if you don't like to read, please feel free to reach out and take one of my classes.
Just reply to this email and let me know that you want to take the Retirement Miracle Class.
I hope this brings some clarity or maybe more questions. I am here to help you solve your financial problems and become financially fit.
To Our Success!
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