Rule 63. Save when you are young to spend when you are old.
Among the maxims of Stephan Allen this is perhaps one of my favorites, providing practical advice to a young man on the necessity of remembering tomorrow expenses, while the passions of youth addle the mind.
When I was still a young boy I was handed a book called, The Richest Man in Babylon. In the book they establish a rule to accumulate wealth that applies here, save ten percent of everything you make. The accumulation of wealth starts with just that, accumulating it. By putting aside simply a dollar out of every ten you would be surprised with how quickly it grows.
The time to start saving is in your youth, you can work harder and longer with less expense. By putting aside money as time goes along, even just ten percent of everything you make, when you get to the time you retire you will have a decent amount saved. This is how retirement accounts like 401K’s started.
Don’t think this concept applies only to money, it also applies to knowledge and skills. All we have is a twenty four hour day, no more no less. What we do with that time defines who we are and who we’ll become.
Too often young people think, “Eat, drink and be merry, for tomorrow we may die!” That process leaves you nothing but an empty tomorrow. If you spend all your time, money, and resources on fruitless things today there will be nothing to offer in the future. By spending our time wisely now we can learn things that will be of use for our families and future. Some of the great hobbies such as woodworking or gardening are both relaxing and practical.
If you wish to have a happy future, determine it now, don’t wait a day longer. With that future as a goal, start to learn what you will need to know, save the money you will need to have.