Do you think that a salary of $20,000 per year is a lot of money? I don’t. But would it surprise you to learn that if someone saved just 10% of their salary ($2,000 or $167 per month) and earned only 10% return, then after twenty years it would be worth $126,814? Earning 15% it would be $250,039. 

Let's say that you’re forty years old and plan to work another twenty-five years. You earn $40,000 per year with no prospect of ever getting a pay rise. How much do you think that you would need to save per month to retire a millionaire, earning an average 15% per annum? Only 9.3% (or $310 per month) of your annual salary. You could do that!

If you are twenty-five years old now and can start saving 10% of your salary and invest it achieving an average 10% return then assuming that you earn $30,000 and get no pay increases you will have $1,581,019 at age sixty five. If you managed to earn 15% then you would have $7,754,013 at age 65. 

This is truly amazing stuff. Right now you are most likely earning enough money to comfortably retire if you only had the discipline to save just 10% of your monthly salary. 

Let's look at it another way. You can spend guilt-free 90% of everything you earn and still be wealthy. Use the wealth building calculator below to see how much you have at retirement if you spent 90% of what you earn... 

One last time, it doesn't take much effort to stash away 10% of your salary. The best way to do it is to have your employer automatically deduct it from your pay and allocate it to your chosen investment fund or bank account. 

When deciding what sort of investment to have your money allocated to, I suggest that you obtain prospectuses from a variety of fund managers and then compare the products. Check out the different historical returns, but more importantly fees and charges. 

You can also go to a financial planner. If you want to find a good one then I suggest you click here to get my FREE report on how to find a great accountant. The information is just as useful for finding financial planners as it is for finding accountants. 

You must make a rule never to use the money in the savings account to fund your lifestyle. It is your retirement tree, don't uproot it - ever. 

A final word, this was the first money habit I acquired and it is still the cornerstone of wealth creation plan today. 

If you don't think that you earn enough to be able save 10% then keep reading the seven secrets.

Action Steps For Immediate Results

1. Commit to paying yourself first.
   
   • Calculate 10% of your gross income
     
   • Set up a separate account and have the money transferred before you can spend it
     
   • Don't use the money to fund a lifestyle
     
2. Reinvest your earnings to take advantage of compound interest.
   
3. Calculate how much money you will have when you retire. If it's not enough then seek the help of a financial planner. Click here to get a FREE Report on how to find one.