At the heart of the movement, the 99% are upset (or mad, depending on how you look at it) at the 1% for making most of the money. My question is this: Who does the 99% work for? Obviously most will say, “for the big corporations” or “for the 1%”. While this is technically true, everyone really works for themselves.
You work to better your life. When you get a paycheck, that money is yours. You choose to spend it as you see fit. Everyone uses a portion of their paycheck to pay someone else, either through credit card debt, a mortgage, gas, groceries, eating out, etc. You are taking your money and paying someone else for a service or a good. There is nothing wrong with this, as some of it has to be done in order to survive. But what the majority of the 99% don’t do is pay themselves for working.
It has been proven time and time again that to find financial freedom you have to pay yourself first. You don’t get a paycheck, pay all of you monthly expenses and then save what is left over. Sadly, this is what most people do. At the end of the month, these people don’t have any money to save. Many spend more than they make and put the difference on their credit card to get by. You should take your paycheck, save 10-20% (studies show that the average millionaire saves at least 15%), and then pay your monthly expenses.
Some will read that and argue that if they were to do that, they would not have enough money to go out to eat, buy clothes, etc. If this is the case, then unfortunately you cannot afford to do these things. You will need to stay in and find something else to do. You will need to make sacrifices.
Aside from those that inherited their wealth (and less than 20% have inherited their wealth), millionaires are self-made. How did they do this? They paid themselves first. That is how they became the 1%. As you accumulate money, the rate at which it grows (or compounds) accelerates.
Below are three amounts of money and the money earned in a given year if that amount were to grow at 3%.
Starting Amount Amount Earned
Notice that the more you have, the faster it grows.
So for all of the 99%ers that want to get ahead, here is how you do it:
When you get your next paycheck, take the amount of the check and multiply it by 10% and save that amount in a savings account. (If your check is for $1,000, take 1,000 x .10 and save $100). You now live off of the remaining $900. (This 10% is in addition to any amount you are saving in your 401(k) plan at work.) If you cannot save 10%, it is time to make some sacrifices. Cut off your cable or choose a more basic plan. Change to a pre-paid cell phone. Find ways to cut your expenses that allow you to save a minimum 15-20% each month. If you somehow cannot cut your expenses any less, you need to get a higher income through a raise, a better paying job, a second job, or start your own business.
As time goes by and you save 10% and eventually more, you will gain financial freedom. It won’t be easy. You will have to make sacrifices and choices. Everyone does. Even the 1% did at some point. You just never hear about it or see it. If you really want financial freedom, you will find a way to attain it.