The 40 Percent Rule
What is the 40 percent rule? Well for starters it is a game changer when it comes to building wealth. I have read over 100 books on investing and personal finance and do not recall coming across the 40 percent rule. I discovered the rule by reading The Millionaire Playbook, by Grant Cardone.
It gives a different perspective on building wealth. An aggressive game plan to help you become a millionaire. One concept is saving to invest. Not saving to save. That’s where the 40% rule comes in. Save 40% of your gross income and put it into your “Sacred Accounts” until you are ready to invest it to create more income. Sacred accounts are accounts where you never touch the money.
40% of your income is some major cheese from your paycheck. That is a huge lifestyle change especially if you are living paycheck to paycheck and in major debt. This will leave you broke most of the time but it is how the wealthy build their wealth. This is how the wealthy stay…WEALTHY.
Rich Vs. Wealthy
There is a difference between the rich and the wealthy. You get rich before you get wealthy and as Chris Rock said, “The ball player is rich, the guy paying the ball player is wealthy.” Buckminster Fuller said wealth is measured in time. How long can you not work while your assets produce income? Wealth produces more wealth and it can withstand economic downturns. Look how many people stayed wealthy during the past recession.
