May 1982
Council from Uncle Dex.
I have been thinking about some gems of wisdom that I could pass on to the family. I would like to recommend some reading to those starting their families. This should go along with their schooling and church study. There are 2 books everyone should read. They are “Think and grow Rich” by Napoleon Hill and “The Richest Man in Babylon” by George S. Clason. They articulate the means to financial security better than any other books I have found on the subject.
From them and other sources such as Earl Nightengale. I have distilled a success formula that will work for anyone and is infallible barring unforeseen disability or death that would interrupt the program. This is the formula:
Daily Work + Money earned
10% is mine to keep + A 90% is mine to Spend+B
A.( Invest the savings and also it's earnings never spend any of it)
B( Your needs including your tithing, taxes, etc come from this portion)
As you can see the secret is in saving that 10% and keeping it invested in a safe, but high yielding investment that allow it to grow and compound on itself over a long period of time. Example: If you worked and earned the minimum wage at any job you could obtain and follow this formula the following would be the result. 40 hours X $3.50 X 52 weeks = $7280 per year. If $728 were invested for 44 years ( age 65-21 = 44) at 10% compound annually you would have $475,122 at age 65 plud your social security benefits that are worth some $ 750,000. your own fund would pay you $47,512 per year or almost $4, 000 per month. Now suppose you get an education and earn an average of $18,000 per year and invest $1,800 per year for 44 years you would have $4,894,805 at age 65.
The toughest part is saving 10% this month! You must do it! Remember it requires daily work and consistent savings to reach the goal of financial daily work and consistent savings to reach the goal of financial security and most of it grows in the last few years but only if it is consistently saved over the entire period.
President Tanner has five rules for financial security:
1. Pay an honest tithing
2. Live on less than you earn. ( 10%)
3. Learn to distinguish between needs and wants.
4. Develop and live within a budget.
5. Be hinest in all your financial affairs.
The most important thing of all is to enjoy doing the work you do so that every day you can have fun doing what you do to earn your living. Love Uncle Dex
Avenge yourself Live long enough to be a problem to your children.