Right/wrong message
All who understand basic economics realize there is no secret to gaining financial independence. It's the result of regular saving.
Of course there are those who reach a position of financial independence by success in business or inventive genius. Hard work and consistent saving, however, is the sure road to financial success.
Each new person in the work force should devote at least 10 percent toward savings. If that trend is continued, soon the nest egg will grow and compound itself. In time the person will be what is described as "rich."
The "rule of seven" generally applies, in that each dollar saved will double itself within seven years. If a daily dollar is saved, that would be 365 a year. After 28 years those daily dollars would become many thousand. The total grows like Topsy, snowballs, compounds.
Cutting back on one pack of cigarettes, a six-pack of beer, trip to the movies, a tank of gasoline — you name it — creates small savings which become big fortunes.
Of course there's a down side. You won't have as many cigarettes and beer to enjoy, you won't attend as many movies or drive so many miles for leisure.
Young people of today are called the "instant gratification" generation. They want reward NOW. They don't want to wait. They'd rather have a good time while they are young, go skiing, buy speed boats, motorcycles, new cars, fancy furniture — you name it — they want it NOW. They don't want to save for their old age. They don't intend to wait. Let the government take care of them later, they want to live for now. They'd rather enjoy their money while they are young.
Again, it's the story of the ant and the grasshopper. Take your choice.
— BILL MEYER
