A retirement savings plan is essential to your future financial security. Where to put the money is not the issue. There are numerous choices of where to put your retirement savings. The question for most people is where do they get the money for the plan. Here’s how to start one on your own, RIGHT NOW!
The old saying, Pay Yourself First, is without doubt, the best financial advice you’ll ever get. If you don’t pay you, who will? How do you manage that? Here’s how.
From every dollar that comes in the door, take 10% off the top and put it in an account that you have designated for your retirement savings plan. This is more than likely a scary idea for those with debt and past due bills to pay. What do I say to that? JUST DO IT! Making the firm commitment to yourself to operate on 90% of your income is half the battle. As time passes, you’ll find you have adjusted to operating on less money.
The best benefit of this self created retirement savings plan is the peace of mind you’ll have just knowing the money is there and that you are building your own financial security. You will find that you actually stop worrying about money. Just knowing that cash is there will make you sleep better at night.
Do you think the whole 10% is too steep a step to start with? Take a look at your cash flow from a different point of view. Go over all of the suppliers you pay out of your cash flow every month and get the idea that these suppliers are all on your payroll. Is there anyone you can terminate and operate without? Is there anyone you can cut back from full time to part time status? Just look at the bills that arrive every month, and those automatic fees deducted from your accounts and you’ll see exactly who is on your ‘payroll’.
Here is an example. I was working with a company owner who was having a difficult time cutting company expenses by 10% to stash away in his retirement savings plan. We looked at each expense from the viewpoint that the vendor was on his ‘payroll.’
Right away we were making a game of firing suppliers like the extra $9.95 per month third-party fraud protection on each of his credit cards. We didn’t renew the contract on some advertising that wasn’t bringing in any new business and found a less expensive alternative and saved $280 a month. We consolidated part of his debt to a low interest loan and saved over $300 in interest charges every month. We sold a lease-purchase piece of equipment he didn’t need and paid off the note. That gained him $239 a month. We even fired his bank and moved his accounts to one with no monthly account charges and got the old bank off his payroll to the tune of $25 a month. Now he has a nice pension fund building up each month.
Why is controlling the flow of money so important? Money is the energy and life blood of a company. It is vital to pump it through the money making areas first to keep it running smoothly. Everything runs smoother when plenty of cash is available. And that includes you, the business owner. The Money Management Solutions software guides you towards making the most advantageous decisions about how to use your money to increase your income and bottom line.
You can make a fun retirement savings plan building game with your company’s cash just by changing your viewpoint about how you will use the money. Be the Donald Trump of your own company. Take a really close look at who you are paying out of your hard earned income. Don’t be shy about saying ‘You’re Fired!’ and pay yourself 10% first by putting that money away in your own retirement savings plan.