Insure a future income.
Here's what the book has to say about saving for retirement:
Therefore do I say that it behooves a man to make preparation for a suitable income in the days to come, when he is no longer young, and to make preparations for his family should he be no longer with them to comfort and support them.
Later it gives this similar advice:
The man who, because of his understanding of the laws of wealth, acquireth a growing surplus, should give thought to those future days. He should plan certain investments or provisions that may endure safely for many years, yet will be available when the time arrives which he has so wisely anticipated.
And finally, it recognizes that everyone needs to plan for retirement:
No man can afford not to insure a treasure for his old age and the protection of his family, no matter how prosperous his business and investments may be.
So what are the practical applications today of what this cure is saying? I'd list the following:
1. Plan for retirement by setting your retirement number. Retirement is more expensive than most of us think it is, so take the time to figure out what you need to save for retirement. This will help you avoid major retirement mistakes and make sure your retirement savings outlasts you. A key part of this, of course, is figuring out your 401k -- deciding how much goes in your 401k and, at a minimum, contributing enough to at least get the full employer match. If that doesn't work, consider tricking yourself into saving. Doing this, you may even be able to retire early.
2. Don't forget about updating/writing your will. There are many benefits of having a will (including naming a guardian for your kids) and a simple, effective will is rather easy to draw up.
Read more summary of this book
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Tuesday 6 November 2007
The Richest Man in Babylon: Seven Cures for a Lean Purse Part 6
Insure a future income.
Here's what the book has to say about saving for retirement:
Therefore do I say that it behooves a man to make preparation for a suitable income in the days to come, when he is no longer young, and to make preparations for his family should he be no longer with them to comfort and support them.
Later it gives this similar advice:
The man who, because of his understanding of the laws of wealth, acquireth a growing surplus, should give thought to those future days. He should plan certain investments or provisions that may endure safely for many years, yet will be available when the time arrives which he has so wisely anticipated.
And finally, it recognizes that everyone needs to plan for retirement:
No man can afford not to insure a treasure for his old age and the protection of his family, no matter how prosperous his business and investments may be.
So what are the practical applications today of what this cure is saying? I'd list the following:
1. Plan for retirement by setting your retirement number. Retirement is more expensive than most of us think it is, so take the time to figure out what you need to save for retirement. This will help you avoid major retirement mistakes and make sure your retirement savings outlasts you. A key part of this, of course, is figuring out your 401k -- deciding how much goes in your 401k and, at a minimum, contributing enough to at least get the full employer match. If that doesn't work, consider tricking yourself into saving. Doing this, you may even be able to retire early.
2. Don't forget about updating/writing your will. There are many benefits of having a will (including naming a guardian for your kids) and a simple, effective will is rather easy to draw up.
Read more summary of this book
Here's what the book has to say about saving for retirement:
Therefore do I say that it behooves a man to make preparation for a suitable income in the days to come, when he is no longer young, and to make preparations for his family should he be no longer with them to comfort and support them.
Later it gives this similar advice:
The man who, because of his understanding of the laws of wealth, acquireth a growing surplus, should give thought to those future days. He should plan certain investments or provisions that may endure safely for many years, yet will be available when the time arrives which he has so wisely anticipated.
And finally, it recognizes that everyone needs to plan for retirement:
No man can afford not to insure a treasure for his old age and the protection of his family, no matter how prosperous his business and investments may be.
So what are the practical applications today of what this cure is saying? I'd list the following:
1. Plan for retirement by setting your retirement number. Retirement is more expensive than most of us think it is, so take the time to figure out what you need to save for retirement. This will help you avoid major retirement mistakes and make sure your retirement savings outlasts you. A key part of this, of course, is figuring out your 401k -- deciding how much goes in your 401k and, at a minimum, contributing enough to at least get the full employer match. If that doesn't work, consider tricking yourself into saving. Doing this, you may even be able to retire early.
2. Don't forget about updating/writing your will. There are many benefits of having a will (including naming a guardian for your kids) and a simple, effective will is rather easy to draw up.
Read more summary of this book
Subscribe to:
Post Comments (Atom)
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