Wealth Notes 

Wealth Principle 2.

We are all potential millionaires.

Yeah right. I can hear the gasps of disbelief. If that's true then how come there are so few millionaires and how come I'm so poor.

We'll deal with your belief systems another day. Today let's just look at the facts.

If a young person left school and started work, aged 19, at a starting wage of R1,200.00 per month and retired at 65 that would mean 46 income producing years. If a 10% per annum "cost of living" increase and a 13th cheque was received every year then total earnings over that period would amount to THIRTEEN MILLION SIX HUNDRED and TWO THOUSAND EIGHT HUNDRED and SEVEN Rand SEVENTY Cents that’s right 13.6 million Rand. Over the same period the receiver would collect FIVE MILLION EIGHT HUNDRED and SEVENTY THOUSAND SIX HUNDRED and FORTY THREE Rand FIFTY THREE Cents in direct taxes leaving our salary earner a balance of SEVEN MILLION SEVEN HUNDRED and THIRTY TWO THOUSAND ONE HUNDRED and SIXTY FOUR Rand SEVENTEEN Cents to spend. Now if our young person was as clever as you he would have saved 10% of gross basic income every month and if he had invested the money at only 10% it would have resulted in a massive total direct (I will show the indirect savings later) saving of TWENTY FIVE MILLION SEVEN HUNDRED and NINETY ONE THOUSAND SIX HUNDRED and FIFTY THREE Rand and SEVEN Cents.

To summarise

Total earnings - 13,602,807.70

Total Tax- 5,870,643.53

Balance - 7,732,164.17

Savings - 25,791,653.07

Now you could say that these figures are unrealistic and perhaps they are, to you. I think that they are conservative. I think that we should be able to do better than this.

You could also say that it's too late now, I'm not 19 any more and this could also be true, that you are not 19 that is. As for being too late. It's only too late when you give up.

You could also say that you don't earn enough to save 10%. Perhaps you spend too much? Remember the 4 step recipe for change. What can you stop giving your money away on? What could you spend less on? What should you start doing and what should you do more of?

To live your best life be true to the YOU, that you want to be.

Live with passion. Change your life from making a living to making a difference.

Live up to the reputation that you want to have.