Making Your Money Work for You involves two components.
- Saving Systematically
- Investing Smartly
In this first season, I've coached my client Tom, about considering SAVING 20% of what he makes. That's because in a little over a year, his contract as an opera singer runs out. No contract, no money. Financial plans fail, for lack of income.
But how much should the average Joe, SAVE from their paycheck? Well, this depends on what type of financial lifestyle YOU want to maintain. Americans are some of the WORST savers in the world, even though we LIVE in one of the WEALTHIEST countries.
Consider this, if you just saved 5% of your income, it'll take 20 years to have one year's salary tucked away. How many of you can live on what you made 20 years ago.
Another big factor: ARE the choices you make about investing your money and allowing what Albert Einstein calls the 8th wonder of the world, COMPOUND INTEREST, working for you!
Like a farmer, don't expect to reap what you haven't planted.
Tune into the next episode of the Invested Life as I review with Tom, tools on how he can wisely INVEST the money he has saved.
Until then, this is your Money Smart Guy reminding you, to LIVE Smart, LOVE Smart, BE MONEY SMART, today!