|
||
|
||
Green Stocks |
|
Rule #1 - Do not lose money! Rule #2 - Never forget rule number 1! ( by: Warren Buffet )For comments or questions please email: : admin@equityresearch.com |
||
How Much Money Should I Save?Research has shown that if you own your own home and save 10% per year that 90% of people will be comfortable in retirement. It may seem difficult to save 10% per year, but consider the fact that everyone has an empty purse.In the book, The Richest Man in Babylon, there is a very important point made. Even though people make a lot of different amounts of money, they are all basically broke. Nobody feels like they can save 10% of their income. It is hard to save money no matter what your income bracket. The key is to live below your means and most people have a hard time doing that. The easiest way to save money is to take it right off the top. If you never see the money, you will learn to live without it. If you job cut your pay by ten percent, you would still survive. Why not imagine the same thing, but instead save up and become a millionaire. Another strategy is to put the money far away from you. For example, don't commingle savings with your regular checking account. How about sending it to a brokerage account or a far away bank. That way, you won't be so tempted to spend it. Pay Yourself FirstEvery investment book out there says to pay yourself first. You will never be able to enjoy the fruits of passive wealth unless you have built up a large nest egg. The only way to do that is to save up your money. It may hurt a little, but pay yourself first.Ten PercentSaving ten percent is easier than you might think. You employer may match part of the 401k that you put into. That is part of the ten percent you are saving. If your employer doesn't match, you might suggest it to them or look for another job. Many employers will match 4% and that means you now only need to save 6%. If you put in 4% and the employer matches 4% that is eight percent. In this case, simply raise your savings by 2% and you are there. |
|||
 |
|
|