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Building Real Wealth by Following the 10% Rule

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This article is published in collaboration with Scutify, where you can find real-time markets and stock commentary from Robert Marcin, Cody Willard and others. Download the Scutify iOS App, the Scutify Android App or visit Scutify.com.

No matter who you are, have almost certainly heard it before; in order to begin building real wealth - and to try to assure yourself of a decent life once your career at the likes of Chisholm, Chisholm, and Kilpatrick is done - you must learn to save and to save on a consistent, regular basis. And preferably, invest those savings to grow them even bigger.

For many, before they even begin thinking about investment possibilities the shock of what they are being asked to do has to sink in. The usual amount suggested for monthly savings by almost every financial expert is 10% of your net income. And to many that sounds like a lot. If you are bringing home $3,000 a month these people are telling you to put 300 in a savings account and leave it there, and to do that every month, starting now.

At this point, we have no doubt lots of you are shaking your head, you can't afford to that; you have too bills to pay, and a lot of life left to lead. You don't want to have to become a hermit and never go out again or start buying all your clothes at the thrift store; however cool Macklemore thinks that is. But you won't have, not if you change the way you save.

Most people, if they try to save at all, intend to save whatever is left AFTER they pay their bills and subtract xx dollars for living expenses. And because money on hand is almost always money that is spent, they never do quite get around to saving as much as they wanted to, if at all. The same vicious cycle repeats every month and even with the best of intentions if even 5% gets put aside it's something of a miracle.

On the other hand, you will find that if you never see that money, you'll never really miss it. Have that 10% of your salary automatically deducted every pay check as soon as it hits your bank, before you can get your hands on it and make sure it goes straight into - at the very least - a high interest savings account. Better still meet with a financial planner and discuss the many other options available to help your money grow.

As for the missing money every month? You'll adapt. Maybe it will mean you have to start drinking the coffee at work rather than stopping at Starbucks every morning. Or you cut a few cable channels that you never watch, or prepare a few from scratch meals instead of opting for easy to nuke TV dinners or drive thru. Little changes that may sting a bit at first, but you won't die.

Saving 10% of your income will require a few sacrifices, but you will actually be paying yourself. You work hard for your money so why should everyone else get some except for you? Saving 10% of your income is an investment in yourself as well as in your future. Once you start looking at things like that following through gets a lot easier we promise.


This article was written by Adam Monson for on .

This article published in collaboration with Scutify, the best app for traders and investors. Download the Scutify iOS App, the Scutify Android App or visit Scutify.com.

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