Do You Save Money?

When I was a young lad, still living at home and not yet a high school student, I made extra money by mowing lawns of our neighbors and by selling veges from our garden door-to-door in our community.  My parents made the rules and I was told that I had to save HALF of everything I earned.  

Since I was still honest at that age, I did not lie about the money I was earning, so HALF was indeed saved and the other half was kept in the top shelf of my dresser.

With my half, I purchased a:

• Television set
• Set of Weights
• A complete drum set

The mindset that was instilled in me when I was young stayed with me all my life and while I did not always save half of my earnings, I did continue to save money if and when there was extra money to save.

At the time, I DID NOT KNOW THIS but if I had saved $2.50 each day and at the end of the month deposited that money into a mutual fund and continued that process for 40 years, I would have SAVED $500,000.

Now think about that for a moment...

Let's say you start this at age 18 so 40 years later you would be 58...  and, you would have $500,000.

A general rule of thumb is that for every $100,000 you should be able to earn $400 each month.  So, that $500,000 at age 58 would start giving you $2,000 each month.  In addition to whatever salary you might be making at the time.

$2.50 each month is $75 every 30 days...  so, what could you spend $75 on instead of saving?  And, how come most people don't think of saving any money at all until they are in their late 50s or early 60s?

If you are not educated then you need to THINK SMART...