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Save 10% of Everything You Earn and You’ll be Rich Someday

Many people have heard of the idea of paying yourself first, the concept is not new or anything, but many people simply have not heard about it.  It works basically on the idea that every pay day you take a certain amount and tuck it away for investing purposes.  Simple enough right?

Well how much should you save to start with?  After all, living is not cheap with the prices of gas rising, real estate always growing and everything keeping pace with inflation.  What if you saved 10% of every pay that you received?  You’d eventually become a millionaire (possibility a few times over).  I know that you are thinking that 10% is not that much money and well you are sort of right, it isn’t, and if your pay check looks like this then are you really going to miss it?…

Monthly Pay: $2500 x 10% = $250

That leaves you $2250 a month to spend on rent or your mortgage, food, clothing, entertainment, and more.  You really aren’t going to miss the $250 a month that you are saving?  This is a concept that has been taught time and time again and I am sure that if you are savvy enough then you are already doing it.  Perhaps you fall into the other group of people who believe that because it seems too easy it isn’t true.  I’ve been reading the book, The Wealthy Barber, and it states the same 10% savings rule.  The book is really worth reading and I am going through it but I thought that this was an important concept to share with you.  I am off to continue saving my 10% a month… call me in 20 years and ask me how I am doing

Luc