Keith Craft: Rule #4: Put 10% into retirement and never touch it.
Rule #4: Put 10% into retirement and never touch it.
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The thought behind the quote
This Rule requires a two-fold type of discipline: First, you have to discipline yourself to put 10% of your GROSS income back every month, and second, you have to discipline yourself NEVER to touch it!
Read the full thought
I had an employee in the '80s that I helped to establish his first retirement account. Approaching 40, he had never put any money back towards retirement. So, as his boss, I helped him to THINK RETIREMENT as a part of his financial legacy! The way I helped him was not only to think this way, but I set up the account as an auto-deduct so he wouldn’t have to think about it, miss doing it, or miss the money! For several years, he began to accumulate a retirement account for the first time in his life.
Now the rest of the story: When he left my organization, he immediately pulled the money out of his retirement and bought a car! An unwise decision, because he let his immediate want, and perhaps need in his mind, displace his hard-earned retirement for a depreciating entity. Notice I did not say asset because your cars for daily transportation ARE NOT assets.
Rule #4 will require disciple and the ongoing desire to be a wise steward with what God has blessed you with.
Related
- Money in itself does not provide meaning.
- Your financial philosophy will be by default when you don’t know what matters most to you financially. You can only design a winning financial philosophy by predeciding what matters most to you financially.
- Rule #3: Pay yourself second.
- Rule #2: Create financial margins (minimum 70/30).
- If you don't save something on your current income, you won't save anything on your future income.
- There is a burden of care in getting riches, fear in keeping them, temptation in using them, guilt in abusing them, sorrow in losing them, and a burden of account at last to be given up concerning them.