CREATE A BRIGHT FINANCIAL FUTURE BY SAVING A MINIMUM OF 20% OF EVERYTHING YOU EARN!

Posted on by Joseph M. Brennan Jr.

I always tell people (especially young people) to get into the practice of automatically saving a minimum of 20% of everything they earn. The 20%+ automatic savings is important because it forces financial discipline – resulting in a greater ability to accumulate financial wealth and achieve financial freedom much sooner than would be experienced otherwise.

Let me provide some examples to demonstrate how investing will help you. Let’s assume you live in Mississippi, and your annual wages are $44,966 (this is the lowest average annual wage in the U.S. for 2025 and is used just as an example to show that even lower wages can grow wealth over time). A 20% savings rate would be $749 per month. Using an investment calculator such as https://www.calculator.net/investment-calculator.html shows that if you invested your money using the long-term average annual gain in the S&P500 Index of 10% per year (including dividends), then you would have:

a. $1.5M in about 42 years if you saved $187 per month (5%).

b. $1.5M in about 35.5 years if you saved $375 per month (10%).

c. $1.5M in about 29 years if you saved $749 per month (20%).

d. $1.5M in about 25 years if you saved $1,124 per month (30%).

Most investors would do much better than the above due to the fact your annual income is likely to exceed that of the Mississippi average at some point, and you will probably continue increasing the amount you save as your annual income increases. So, be sure to do this for yourself if you can.

Here is some additional finance and investing related information which might be helpful to some of you:

  1. HOW TO CREATE A BRIGHTER FINANCIAL FUTURE FOR YEARS AND DECADES TO COME: https://brighterdayslifecoaching.com/how-to-create-a-brighter-financial-future-for-years-and-de cades-to-come/
  2. HOW TO INVEST WELL AND CREATE A BRIGHTER FUTURE WITH MINIMAL EFFORT: https://brighterdayslifecoaching.com/how-to-invest-well-and-create-a-brighter-future-with-minimal-effort/
  3. MY “INVEST LIKE A PRO IN 10 MINUTES A DAY” SERIES OF BOOKS: https://brighterdayslifecoaching.com/published-books-and-life-coaching-services/
  4. THE STOCK MARKET ACTIVITES I ENGAGE IN: https://brighterdayslifecoaching.com/stock-market-activities/

I hope this information will be helpful to you and I wish you much success in creating a brighter financial future for yourself, your loved ones, and those who follow!

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