We’ve all heard about the wealth accumulation rule called “pay yourself first”.
Basically, it involves taking a set amount from your monthly pay and putting it into savings.
If you decide to "pay yourself" 10% every month, you'd be saving 10% of your income to invest for future prosperity.
But billionaire Sir John Templeton had an even more powerful idea called the 50/50 rule.
He decided that for every dollar he spent, he'd have to invest an equal amount. So every time he bought a car, TV, vacation or house, he'd have to set aside the same amount for future prosperity.
This method is obviously a lot more difficult than "paying yourself first".
With the 50/50 rule, before you buy a $20,000 car, you'd have to put another $20,000 into investments.
Not only does that encourage you to cut back on unnecessary spending, it forces you to save an invest a huge amount of money.
Of course, getting to the 50/50 rule may take a few years as you slowly change your spending and saving habits.
But once you're there, you're almost guaranteed to be amassing large quantities of money which are further multiplied by prudent investing.
And before long, you'll be several steps closer to achieving the financial independence Sir John Templeton is famous for!
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