HOW ANYONE CAN GET RICH: The Rule of $50s
At some point, few people want to keep working as hard as they do right now. Whether it is to cut back, change careers, or actually retire; we all hope to have accumulated enough wealth at some point to have choices. Yet, the financial outlook after 50 for most people is quite bleak.
The average savings for someone over 50 is $43,707
Only 1 in 100 people is considered wealthy at retirement age
Just 4% have adequate capital to cover their retirement
What make these numbers so inexplicably off, is that through the science of managing money, even someone who spends their life working at an hourly rate can be considered relatively wealth if they handled their money right.
If you shoved $50 a month into your sock drawer each month for 30 years, you’d have $18,000 in cash. Yet, by managing this money well, at 8% interest – it would be $68,000.
My rule of $50s: Every time you don’t waste $50 and leave or put it into investments or make another $50 and do the same, it shows up as another $68,000 in the bank at retirement.
When I am helping a young doctor open up their clinic, helping a client create a budget and manage their overhead in the office or at home, assisting a team bringing in a new patient, or helping an office add a service to help people more and generate additional revenue; usually we are taking away $1000s of dollars of costs and adding 10s of $1000s in revenue.
The problem: Many people don’t start soon enough to take advantage of compounding dollars and interest over that 30 years. The longer the running start you give yourself, the better. It’s never too late, but the sooner the better.
When you consider what happens not to just $50/month but $500, $5,000, or $15,000 in profit that gets invested monthly, it’s not hard to see how health care providers should become very wealthy over time.
Where can you start to use the rule of 50s to create affluence in your future? The best time to start this was years ago. The next best time is right now!
Have fun saving the world!
Dr. Ben Lerner
