Financial Independence. So much has been written and discussed about this topic that it seems one needs to be an expert to achieve financial freedom. There is no doubt that the concept of providing for one's financial future has gotten so complex that it often paralyzes people. It just seems too much to deal with, learn about, or figure out.
It needn't be. I offer two simple golden rules that are as old as time and have a proven track record. Adherence to the two rules is a simple way to get on and stay on the path to financial freedom. Trust me on that one.
Pay yourself first. Whether it is through payroll deduction or other means, you must save first and then spend what is left. Most folks spend first and there is never anything left to save. The discipline to save first will yield great results and ironically you will not notice any difference in your lifestyle over spending first and saving what is left.
Save 10% of what you earn. This goes along with paying yourself first, and the amount you reward yourself with is 10%. You can use a lot of fancy formulas and calculations, but for those who save 10% of what they earn, financial success is on the horizon.
Pretty simple: Pay yourself first and save 10% of what you earn. Adhere to those two principles and you will be part of the people that call themselves financially successful.
- Tom Vorisek