RULE 42: Save In Big Chunks!

Veteran Journalists, Mike Awoyinfa, Dele Momodu and Politician-Businessman, Dr. Orji Uzor Kalu

I always thought
that if I could get my hands on a big chunk I would put loads of it away and
that would be a brilliant way of saving. I have a friend who says that is nonsense
and that the drip-by-drip effect is the best way to save. Who is right and who
is wrong? Obviously I must be right. It’s my book, after all.

Let us consider
it a bit more logically. Suppose I save a big chunk. Let’s say I get £20,000
for some work I do or something I sell. I spend half and save half. And I do
this when I am 50. How much do I have at retirement? 


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“My
friend saves a measly, miserly £10 a month – small potatoes I say. But he does
start early – at 20 and never misses a month. Who is going to retire big time
and who is going to be reusing tea bags?”
My friend saves
a measly, miserly £10 a month – small potatoes I say. But he does start early –
at 20 and never misses a month. Who is going to retire big time and who is
going to be reusing tea bags? Come on, come on, you can work this stuff out in
your head, can’t you? No? OK there’s the chart down for you to read (assuming a
modest 5 per cent interest per annum).
See, I told you I was right … but not by much.
Hope you have learnt a valuable lesson here. It’s good to be prudent and save
regularly but in the long run a big chunk saved later in life will bring home
the bacon just as easily
From The Book; The Rules of Wealth by
Richard Templar
(Read Rule
43
of Rule of Wealth tomorrow on Asabeafrika)


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