[Young] Entrepreneurs: Learn to 'Pay Yourself First'

[Cognition]

I'm bringing back an old discussion topic back to life.

Enjoy!

http://www.youngentrepreneur.com/for...68-post94.html

[BusinessAdviser]

I'm bringing back an old discussion topic back to life.

Enjoy!

http://www.youngentrepreneur.com/for...68-post94.html

I agree. However, I would argue that 15% of income should be saved. One of the easiest ways that I have found to do this has been through a "life insurance" policy with New York Life. This is not spam, but an experience that has benefitted me which might benefit others.

A good friend of mine introduced me to a service that his company offered. To cut to the chase, a set amount is pulled from my banking account each month automatically. The amount was set based on what I could afford. Not only does it fund my whole life insurance policy (which is set to cover all debts that I owe), but when I choose to retire, I can opt to have it begin paying out immediately. It compounds at a rate of 7-8% per year, and the insurance side of it pays out upon death regardless of the cause.

Yeah, sounds like a sales pitch, but more than anything, it's the best method of saving that I have yet to find, for a number of reasons.

[Cognition]

I agree. However, I would argue that 15% of income should be saved.

You mean as a minimal? There are some who pay themselves first at a rate of 20%, 25%, or more.

Regardless of the percentage someone allocates, the habit of funding your savings [for investing] with the pay yourself first principle needs to be comprehended before ANY entrepreneur thinks about winning it big financially.

Why? If you they master this principle of self-discipline, I can guarantee that their income will be forever subjected to being 'lost'.

I recommend the classic 1920's book, The Richest Man in Babylon, for those who recognize the importance of financial intelligence [and restraint].