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Open a Future Account- formula



 

Plan A- Income - expenses= Saving

or

Plan B- Income - Saving= Expenses


Resolve today that you will adopt Plan B to achieve financial independence. 97% of the world accepts Plan A. So, they remain poor.


Normally people those who accept Plan A Work for People who Accept Plan B.

How to work- Take 10 percent of your income off the top of your pay check Each time you receive one and put it into a special account called a “Future Account” for financial accumulation.


The fact that -If you are Age 25- and even if you save 1000 per month from the start of your career for next 35 years for your retirement till Age 60.


If it grows at 10% even -Your corpus would be 34.25 Lacs in Balanced Mutual funds.

If it grows at 15% even -Your corpus would be 1.14 Crores in Mutual funds


This means that anyone can become a millionaire over the course of his or her working life time. Developing the life long habit of saving and investing your money is not easy. It requires tremendous determination and will power.


Practice - Questioning every expenditure. Delay or defer every important buying decision for at least a week or a month. The longer you put off your buying decision the better your decision will be and the better price you will get at that time.


A major reason that people retire poor is because of impulsive buying. They see some thing like and they buy it with very little thought. They become victim of what is called as Parkinson’s Law.


Which says that expenses rise to meet income. This means that no matter how much you earn you tend to spend that much and a little bit more besides. You never get ahead and you never get out of debt.


You never have to be the victim of Parkinson law. If you cannot save 10% of your income start with 5% of your income today and slowly gradually increase it religiously.

Put it at the beginning of each month, even before you begin with your debt. Live on 90% of your income. And gradually increase it too.


Within one year you will be saving 10% or 20 or 30 percent of your income and living comfortably on the balance. At the same time your savings and investments account will start to grow.


You will become more careful about your expenditures and your debts will begin to be paid off. Within a year or two ,your entire financial life will be under your control and you will be on your way to become a self-made millionaire.

This process has worked for everyone who ever tried it. Try it and see yourself.


Parag Nesarikar


 

Write your Comments:

Exercise:

  1. Do you have a Future Account?

  2. Have you heard of this future account Concept?

  3. What is the best point of the above blog?

  4. Would you wish to open a future account for your self?

 

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