tailieunhanh - Protecting Your Wealth in Good Times and Bad Chapter 13

Chapter 13 Early Savers. Two key components for accumulating wealth are time and consistency. Ideally, people should start saving at the same time they land their first full-time job. The sooner we start, the better. Consistency is also important. | Part Three A Lifelong Saving and Investing Guide Copyirght 2003 by The McGraw-Hill Companies Inc. Click Here for Terms of Use. This page intentionally left blank. Chapter 13 Early Savers A person becomes an adult at the point when he produces more than he consumes and earns more than he spends. Henry C. Link T wo key components for accumulating wealth are time and consistency. Ideally people should start saving at the same time they land their first full-time job. The sooner we start the better. Consistency is also important. If young people can make saving a habit from the very beginning then they will not have to worry about financial security later in life. The amount of savings does not need to be excessive. Putting away 10 of earnings each month is ideal. This amount is less than half what most people pay in taxes. Typically an adult works full-time for about 40 years before retiring. During the 40-year employment period wealth accumulation can generally be divided into two phases Early Savers in their 20s and 30s and Midlife Accumulators in their 40s and 50s. This chapter covers the first phase the next chapter covers the second phase. Copyirght 2003 by The McGraw-Hill Companies Inc. Click Here for Terms of Use. .