40-40-40 PLAN. WHY MOST PEOPLE WILL RETIRE BROKE - FINANCIAL SEEDS
March 11, 2015
Growing up I saw that my family seemed to struggle even though they were working overtime or had multiple jobs. They would wake up early, go to work and get off late only to find themselves barely making ends meet. Their kids would have to miss out on birthdays or seeing their parents at graduations all because the parent couldn't afford to take time off of work.
On the other hand, when I was about 10 years old I met a mentor who owned his own business. He would go into his office for a few hours most days. He would spend a lot of his time traveling with his wife on nice vacations. He owned several properties and seemed to be living the life that most people could only dream of although he wasn't working nearly as much as the adults I was around while growing up. I was taught the reason some of my family failed to achieve financial freedom was because they were on the 40-40-40 plan.
THE 40-40-40 PLAN MEANS...
They work 40 hours a week for 40 years only to retire and struggle on 40% of their income because they failed to save and invest.
40 HOURS A WEEK
While getting a job is a great place to start, it should not be your only income stream. Most people lean on the false sense of security a job offers but in turn their earning potential is controlled by someone else, their schedule is determined by someone else, and the 40+ hours spent working for someone else can result in having to sacrifice the things they really love.
God never intended for us to rely on only one source for survival. In Genesis 2:10 - 14 the Bible notes that there were 4 rivers in the Garden of Eden which means Adam and Eve had multiple streams to rely on, not just one. People can earn income any of the following ways: wages, profits, capital gains, and dividends. Make sure you're not relying on only one.
40 YEARS
Most people work 40+ years because they have no choice. Often times they forced to work jobs they hate because they live paycheck to paycheck. Don't let a job you hate become your master because you have become a slave to a paycheck. Make sure during your working life you are acquiring assets so that later in life you are only working because you love what you do and not because you need the money to survive.
40 % OF THEIR INCOME
The reason most people end up having to live on 40% or less of their income at retirement is because they spend all of their working life giving their money away and then rely on social security and disability to support themselves. Most people spend their whole life working just to give away all the money they've earned to taxes, debt, inflation, and buying depreciating assets when in reality, all of these charges can be drastically decreased or avoided altogether.
Proverbs 21:20 informs us that only a foolish man devours all he has. Unfortunately, this is exactly what most people do.
I encourage anyone to get on the wealth plan and to leave the 40-40-40 plan in the dust. Life is much too short and God is much to great for you to spend your whole life struggling to survive.
Give me your thoughts below on the 40-40-40 plan.
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