There is no question that the path to a stable retirement  financial plan involves the development of a sound savings program throughout your working career. In that vein I would like to end the year with a light-hearted financial plan put together by Mr. Jim Ruta a renowned motivational speaker and close personal friend. The message is short but is also powerful in scope.


LEARN TO LIVE ON 80% OF YOUR NET INCOME-So many of us get involved in living on cash flow-where your monthly income covers payments on purchases rather than paying for purchases. The upshot of this losing strategy is that many end up living on about 120% of their net income. Once in this “program” some people can escape but many of them end up with a heart attack, bankruptcy and sometimes divorce. There are some lessons you have to learn yourself and this is one of them.


Save the money you spend to impress yourself –IF YOUR GROSS SPENDING HABITS EXCEED YOUR NET INCOME YOUR UPKEEP WILL BE YOUR DOWNFALL. Buying things just to make yourself feel good has its shorter compensation but having no money lingers long after the sweetness of having stuff is forgotten.


SUCCESS IN INVESTING HAS NEVER BEEN AND NEVER WILL BE ABOUT RATE OF RETURN-It has always been and always will be about the personal discipline of putting money away. The propaganda we see every day about investment options is interesting, just not very important if you don’t put money away. The only way to make compound interest work for you is to have money for compound interest to work on.


REMEMBER THAT PEACE OF MIND EQUALS QUALITY OF LIFE-In choosing your investment options keep this simple idea in mind. Being able to sleep soundly at night can never be overvalued.


Thank you to those who have responded to my articles over the last year and to all best wishes for a happy holiday season and for a healthy and prosperous new year.