Millionaire Shares 'One Hour Savings Rule' That Can Help You Become Rich

We all work hard every day to live a financially comfortable life with our loved ones. At the same time, we try to save as much as possible to have a financially secure future as well. Striking the balance between saving and spending is what the biggest task turns out to be amid our quest to have more and more money, right?

But a self-made millionaire has shared a simple formula that can help you become rich.

What Is The One-Hour Savings Rule?

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According to New York Times' bestselling author and self-made millionaire David Bach, getting rich boils down to a simple formula: setting aside at least 14 per cent of your income. But 14% may sound like a lot to some people, but it¡¯s actually equivalent to just over one hour¡¯s worth of income each day, the millionaire points out: ¡°I want you to keep the first hour of the day of your income. So from 9:00 a.m. to 10:00 a.m., that hour goes to you.¡±

Think about it this way, he suggests: ¡°You¡¯re going to work 90,000 hours (around 35 years) over your lifetime. Most Americans get to the age of 60 and they have nothing to show for it. What you¡¯re going to have is at least a million dollars in your retirement account if you pay yourself first, one hour a day of your income.¡±

How Can The Formula Make You Rich?

indiatimes

You may be thinking, ¡°I don¡¯t make enough money to save and invest, let alone save and invest 14 per cent of my income.¡± That¡¯s ¡°poor thinking,¡± says the millionaire, as per a CNBC report. ¡°Chances are, you actually do make enough money to be rich ¡ª you¡¯re just spending it on little things. "

¡°I don¡¯t know what you¡¯re spending small amounts of money on, but I know this: $10 a day can change your life. If you¡¯re in your 20s and you start investing $10 a day automatically into your retirement account, at a rate of 8 per cent, by the time you hit 60, you¡¯ve got over a million dollars.¡±

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Even if we look at it psychologically, breaking down a big goal into smaller ones makes it seem more achievable, right? A similar perspective works in this one-hour saving rule as well.

Also Read; How Much To Invest In Order To Become A Millionaire

Who Is The Millionaire?

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56-year-old David Bach is one of America¡¯s most trusted financial experts and bestselling financial authors of our time. He has written ten consecutive New York Times bestsellers with more than seven million books in print, translated into over 19 languages.

His runaway #1 bestseller The Automatic Millionaire spent 31 weeks on the New York Times bestseller list. He is one of the only business authors in history to have four books simultaneously on the Wall Street Journal, BusinessWeek and USA Today bestseller lists, as per his website.

Over the past 20 years, David has touched tens of millions through his seminars, speeches and thousands of media appearances. He has been a contributor to NBC¡¯s Today Show appearing more than 100 times, and a regular on The Oprah Winfrey Show, ABC, CBS, Fox, CNBC, CNN, Yahoo, The View, PBS, and many more.

Also Read: How You Can Become A Millionaire By Investing Rs 500 Per Month

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