I'm wondering how many people implement this powerful strategy where you habitually put away a portion of your pay check every month or so to go towards investments?
By pay check I mean any kind of income that lands in your bank account whether you work for someone else or not.
If so, how much do you put away? 10%, 50%?
Anyone else have a similar strategy that works for them?
All money received by our kids from birth have been put aside, as they grew older split is 50%, once started working and studying and living at home then 30% for private 70% for investment.
In addition like you we have been buying coins, stamps, prints, some collectibles, etc...
Personally we adopted the 70% spend and 30% save then invest strategy and will pass to kids, even being self-employed yet paying ourselves first. Have separate accounts where that income is diverted then used to invest.
In addition we have fully maximized our SMSF too, why not take the advantage of current rules, for future benefit, especially having there now 6 IPs..., further approved borrowing in 6 digits, but hesitant to advance there....
Personally now concentrating first kid to purchase first IP, helping family member purchase via SMSF too, and perhaps investing further when steps 1 and 2 are done.
So keeping very busy with lots to do but yes the progression was due to having the consistent discipline to continue to use this approach. Adopting "The Richest Man in Babylon" has worked wonders for us. Most people have read the book yet how many really practice what it taught???
Really, living on 70% is not so hard to do.......
