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The 10% Solution

Always pay yourself first. The less money you think you have, the more important this strategy becomes. Beginning with your next paycheck, take 10% right off the top and pay yourself! Do the same with every paycheck you receive from today forward. Take the first 10%, even before you pay your rent, mortgage, car or any other bills.

Your 10% should be invested in a savings account until you have accumulated two to three months of living expenses. Once you have your cash savings, continue to pay yourself the 10%--but now make the payments into long-term investment vehicles such as mutual funds.

Qualified plans such as 401(k), SEP-IRA, SIMPLE plans and other employer-sponsored retirement plans are a great way to apply the 10% Solution. The money is put aside for you before you ever receive it in your paycheck. An amount as small as $100. a month (10% of annual salary of $12,000) invested for 40 years at an average return rate of 12% would grow to a nest egg of $1,176,477! Give IAS a call, We'll help you make the 10% Solution your reality!

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