Tuesday, 8 December 2015

RULE 42: Save In Big Chunks!


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Veteran Journalists, Mike Awoyinfa, Dele Momodu and Politician-Businessman, Dr. Orji Uzor Kalu

I always thought that if I could get my hands on a big chunk I would put loads of it away and that would be a brilliant way of saving. I have a friend who says that is nonsense and that the drip-by-drip effect is the best way to save. Who is right and who is wrong? Obviously I must be right. It’s my book, after all.

Let us consider it a bit more logically. Suppose I save a big chunk. Let’s say I get £20,000 for some work I do or something I sell. I spend half and save half. And I do this when I am 50. How much do I have at retirement? 

“My friend saves a measly, miserly £10 a month - small potatoes I say. But he does start early - at 20 and never misses a month. Who is going to retire big time and who is going to be reusing tea bags?”
My friend saves a measly, miserly £10 a month - small potatoes I say. But he does start early - at 20 and never misses a month. Who is going to retire big time and who is going to be reusing tea bags? Come on, come on, you can work this stuff out in your head, can’t you? No? OK there’s the chart down for you to read (assuming a modest 5 per cent interest per annum).
See, I told you I was right ... but not by much. Hope you have learnt a valuable lesson here. It’s good to be prudent and save regularly but in the long run a big chunk saved later in life will bring home the bacon just as easily

From The Book; The Rules of Wealth by Richard Templar
(Read Rule 43 of Rule of Wealth tomorrow on Asabeafrika)



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