February 18

004 | The Key Ingredient to Your Success with Saving [Pay Yourself First]

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There's one key ingredient to your success with saving.

Learn all about it and how you can implement it on this Save Like Dave episode.

First, let’s do a little imagination exercise.

In each case, you save $10,000 a year.

The younger saver starts at age 25 and only saves for 15 years. So $10,000 X 15 years is $150,000 saved after those 15 years. 

The older saver starts saving at 35 and saves his or her $10,000 per year for 30 years, from age 35 to age 65 with a grand total of $300,000 invested which is $10,000 X 30 years).

Now, who do you think managed to walk away with more at retirement? Who made more at retirement?

Was it the younger saver who only invested $10k for 15 years starting at age 25? Or was it the older saver who invested twice as much, $10k a year for 30 years, but started 10 years later at age 35?

Learn the answer in today's episode.

In the episode, Dave shares:

  • How he first learned to save in 3rd grade.
  • How he became a consistent saver over the years DESPITE the amount of money coming in.
  • How to start saving early and often (not important the amount at first, it's about the habit).
  • How to make consistent savings painless and automatic.

Questions for Review:

  • Have you set up a way to pay yourself first?
  • What can you do today to create a simple automatic savings plan?

Verse of the episode: "On the first day of every week, each one of you should set aside a sum of money in keeping with your income, saving it up, so that when I come no collections will have to be made." -1 Corinthians 16:2


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