Monday Morning Coffee


"A penny saved is a penny earned." 
- Ben Franklin


Waiting for your ship to come in? Think you need to win the lottery to become a millionaire? Waiting for your inheritance to come through? Dream on - but don't hold your breath. The truth is that "steady as she goes" is the watchword for accumulating real wealth. In baseball terms, the method would be to hit plenty of "singles" and "doubles" and forget about the "home runs."

Consider this method for becoming a millionaire: At age 25, begin setting aside just $100 each month. Invest the money at 12% - yes that is do-able! At age 65, you would have accumulated $1,176,477. In other words, if you never increased the $100 per month, regardless of all the raises and increases in income you experienced over your lifetime, you would have over $1,000,000 in your investment account.

Now let's say you received a very modest $1,000 per year increase in pay over your 40 year working life. By putting aside an additional $250 each year (just 25% of your yearly raise), an additional $191,772 would be added to your million-plus nest egg.

Better yet, here's the easiest method. Beginning at age 20, put $2,000 per year into an IRA for just three years. Never add another nickel to the account. At age 65, the account would be worth $1,153,180.

What if you're already 45 years old (the average age at which Americans begin saving)? You would need to put aside $1,100 each month for 20 years at 12% - giving you $1,187,106 at age 65.

Financial security requires patience, persistence, and self-discipline (sort of like real-life). Spend less than you earn, and put the rest to work for you. It's a simple formula that few ever attempt, yet it yields unfailing results!