The 20 percent rule

If you were to save and invest 20 percent of all the money you ever earn you would not die poor.This is a very simple strategy which works.

I usually recommend it to people who are beginning their careers and they often just laugh at me.

Don’t be mistaken by the simplicity of this advice. It works all the time. You see, people are looking for magic bullets to become rich overnight. So when you tell them to simply save 20 percent of their money for several years they imagine you are just joking.

Someone asked me why many people still don’t do this if it were that simple. My response was that people are not that patient and prefer to live in the present moment without much consideration for the future.

If there is a single piece of advice to take from this blog it is simply to save and invest 20 percent of any money you make. This single strategy will make you rich before you die.

Now if you couple this with working on your skills and increasing your earnings you will become one of the wealthiest people in your community.