Bennett Financial Services

Wealth creation will result from your investment strategy; however, the ability to invest requires a strategy that will encourage you to regularly save a portion of your income so that those savings, when translated into investments can work for you.  If you want to retire at a reasonable age, then it will be necessary to create an investment portfolio whose income at that time will replace a significant portion of your current salary.  It can be done with some disciplined saving. 

Perhaps this can best be appreciated if we remember the ’72 – Rule’.  This is a simple but very powerful mathematical truism that tells us that if something is invested at a rate of 1%, it will double its value in 72 years.  Carrying that logic forward; if something is invested at a rate of 9%, it will double in (72 / 9) 8 years.  You can see the power of a disciplined savings program when invested properly.  This power increases exponentially when you use other people’s money, (investment borrowing) to work on your behalf.

The challenge is to create a savings program that you will work for you.  This will involve setting up the proper configuration of bank accounts, an analysis of your current financial position, a cash-flow strategy and a forced savings program.  This is easier than you think and you will be amazed at your progress. 

For a clear understanding of the terms being used, the issues involved, the necessary steps to be taken and for a step by step check-list procedure of how to set up a productive savings program, read the chapter on ‘Saving Strategies’ in Bennett Financial’s ‘Checklist Guide to Financial Independence’.  To get a copy, click here.