Retirement Savings Plan – How To Start Your Own
Your future financial security is dependent on having a retirement savings plan. Where to put the money is not the question. There are many places to put your retirement savings. The question for most people is where do they get the money for the plan. Here’s how to start one on your own, RIGHT NOW!
The old adage, Pay Yourself First, is some of the best money management advice you will ever get. If you don’t pay you, who will? How do you do that? Here’s how.
Out of every bit of income that you make, take 10% off the top and set it aside in your retirement savings plan. I know that is a scary idea for a lot of people who have debt and past due bills to pay. What do I say to that? JUST DO IT! You will find that you CAN operate on 90% of the income if you decide you are going to. As the weeks and months go by, you’ll find you have adjusted to operating on less money.
The most significant benefit of this self created retirement savings plan is the financial security and peace of mind it gives you. You won’t worry so much about money. You will actually start sleeping better at night just knowing the cash is there.
Do you think the whole 10% is too steep a step to start with? Take a look at your cash flow from a slightly different point of view. Review all of the suppliers you pay out of your herd earned money every month and get the idea that these suppliers are all on your payroll. Is there anyone you can terminate and not really miss? Is there anyone you can cut back to part timer status? Just look at the invoices that come in every month, and/or those automatic deductions from your bank accounts and you’ll see exactly who is on your ‘payroll’.
Here is an example. I was working with a company owner who was having a difficult time cutting operating expenses back 10% to put away in his retirement savings plan. We looked at every expense from the viewpoint that the supplier was on his ‘payroll.’
Right away we were making a game of firing suppliers like the extra $9.95 per month third-party fraud protection on each of his credit cards. We cancelled the expiring contract on some advertising that wasn’t bringing in any new business and found a more cost effecrtive alternative and saved $280 a month. We consolidated part of his debt to a low interest loan and saved over $300 in interest charges every month. We sold a lease-purchase piece of equipment he didn’t need and paid off the note. That saved him $239 a month. We even fired his bank and moved his accounts to one with no monthly account charges and got the old bank off his payroll to the tune of $25 a month. Now he has a nice pension fund building up each month.
Why is it so important to be in control of the flow of money? It is the energy and life blood of a company. It is necessary to pump it through the money making areas first to keep it running well. Everything runs better when adequatecash is available. And that includes you, the business owner. The Money Management Solutions software guides you towards making the most advantageous decisions about how to use your money to make more money.
Just by changing your viewpoint about how you use your business’ income, you can make a fun game of building your retirement savings plan. Be the Donald Trump of your own company. Take a really close look at who you are paying out of your hard earned cash flow. Don’t be reluctant to say ‘You’re Fired!’ and pay yourself 10% first by putting that money away in your personal retirement savings plan.
Sandra Simmons, President of Money Management Solutions, has years of experience helping professionals and individuals manage their money to get out of debt. To find out about the Money Management Software she created, visit her website and watch the FREE 5-minute demo video at www.moneymgmtsolutions.com
- Sandra Simmons
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