Every college graduate can become a millionaire by age 50 by obeying 3 laws of personal finance.
The 3 laws of personal finance are:
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Personal Finance Law #1: The Law of Spending and Saving
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Personal Finance Law #2: The Law of Tax Advantaged Investing
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Personal Finance Law #3: The Law of Purpose and Commitment
Some people think this is a very bold claim; every college graduate can be a millionaire by age 50.
When you obey these 3 laws of personal finance, you discover the truth. Saving a million dollars in 30 years is really not mission impossible.
The first law of Personal Finance is the law of Spending and Saving:
The law of spending and saving, is the most fundamental principle and personal finance. It’s also the most disregarded law of personal finance in American history. Spend less than you earn, and save more for what matters most.
Ben and Frank became friends at age 19. Ben started saving and investing, in a well-managed, low-fee, diverse mutual fund that earned an average return of twelve percent annually.
Ben saved two thousand dollars a year for eight years and then he stopped. So he invested sixteen thousand dollars; 8 years times x 2 equals sixteen thousand dollars. By the time Ben was 65, his investment grew to $2,288,996.00.
Frank, on the other hand, decided he wanted to spend his money on entertainment, dining out, Starbucks and a nice new BMW.
Frank’s BMW
Frank didn’t start saving until nine years later. So by the time Ben stopped investing, Frank was just getting started. Frank, like Ben, saved two thousand dollars a year. That’s $167 a month, or $42 a week. Frank invested his $2,000 every year in the same mutual fund as Ben.
3 Laws of Personal Finance
Frank continued his spending and saving plan until he turned 65; at that point he had a total of only $1,532,166.
Ben, saved and invested to thousand dollars for eight years from age 19 to 26. Ben, saved and invested a total of $16000.
Frank started his spending and saving plan at age 27 and kept doing it, until he was aged 65. Frank saved and invested seventy eight thousand dollars and he never caught up to Ben.
The law spending and saving, is the most fundamental law of personal finance; spend less than you earn, and save more for what matters most.
The Law of Tax Advantaged Investing:
The IRS makes the law – your job is to take advantage of the law, by investing in tax advantaged accounts like…
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401K, the most common,
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Simple IRA for small business
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SEP IRA- best for sole proprietors or employers with no employees;
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Tax deductible IRAs
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403B for teachers and nonprofits;
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457 for government workers and
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Tax-free investments, like the Roth IRA.
The Roth IRA is a great way to save for you, your spouse, or your kids (when they earn money in your cottage industry).
The law of tax advantaged investing, lets you spend less on taxes and save more for what matters most to you.
The Law of Purpose and Commitment:
The most important law of personal finance is the law of purpose and commitment.
When it comes to managing money, life, work and relationships, and did I say MONEY? There’s no law more important than the law of purpose and commitment.
Most Americans, don’t spend time thinking about their true purpose; so most Americans never connect their resources to what matters most.
Every college graduate can be a millionaire by age 50.
Three Laws of Personal Finance – Video
🚀 Unlocking the Three Laws of Personal Finance! 🚀
Welcome to today’s special episode where we unravel the core principles of managing, growing, and protecting your wealth! 💰🌟
🔑 Highlights:
1️⃣ Personal Finance Law #1: The Law of Spending and Saving – Discover the equilibrium between spending for today and saving for tomorrow! 🛍️💰
2️⃣ Personal Finance Law #2: The Law of Tax Advantaged Investing – Learn the secrets of smart investing and how to maximize your returns by leveraging tax benefits! 🧾📈
3️⃣ Personal Finance Law #3: The Law of Purpose and Commitment – Understand the power of setting clear financial goals and staying committed to your plan! 🎯❤️
💡 Fun Fact: Did you know every college graduate can become a millionaire by age 50? Seems bold? Tune in to find out how! 🎓💸
🔥 Join us as we deep dive into these pivotal laws and help you craft a financially secure future! 🔥
#PersonalFinance #WealthManagement #FinancialFreedom #InvestSmart #MoneyMatters #MillionaireMindset 🌍📊🔗
👍 Don’t forget to LIKE, SHARE, and SUBSCRIBE for more financial wisdom! 👍
Just for fun, here’s 25 funny tweets to tweet and retweet about Three Laws of Personal Finance:
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“Just tried to buy coffee with good intentions… turns out they only accept cash or card. 🙄 #LawOfSpendingAndSaving ☕💸”
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“Why did the investor go to school? To improve his stock knowledge! 🎓 #LawOfTaxAdvantagedInvesting 📈”
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“Told my piggy bank about the #LawOfPurposeAndCommitment. Now he won’t let me break him open. 🐖💰 #DedicatedSavings”
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“I tried yoga to align my chakras. Now, I’m trying the 3 Laws to align my finances. 🧘♂️💰 #FinancialZen”
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“If my money had wings, it would fly away… good thing I’ve learned the Law of Spending and Saving! 🚫🕊️💸 #HoldTight”
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“Tax season: The yearly reminder to learn the #LawOfTaxAdvantagedInvesting. Why did I buy that llama farm again? 🦙💡”
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“Dating tip: Find someone who looks at you the way I look at my growing investments. 😍 #FinancialGoals 📈”
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“Heard the #LawOfPurposeAndCommitment and now my wallet and I are in a serious relationship. ❤️💰 #ItsOfficial”
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“Why did the money go to school? To get a little interest! 📚💵 #BankJokes #LawOfSpendingAndSaving”
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“When your budget tells you ‘no’, but that online sale tells you ‘yes’. 🛍️😅 #ShoppingStruggles #PersonalFinanceLaws”
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“If I had a dollar for every time I didn’t understand taxes… Oh wait, the #LawOfTaxAdvantagedInvesting says I could! 💡🧾”
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“Finding purpose in life: ✅. Finding purpose in spending: Still working on it. 🤔 #LawOfPurposeAndCommitment 💰”
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“First Law of Personal Finance: Money doesn’t grow on trees… but interest does! 🌳💸 #PlantYourWealth”
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“I told my money to go make friends… thanks to the Law of Tax Advantaged Investing, now it has lots of them! 💵🤝💵 #MoneyBuddies”
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“Meditation for today: My purpose is to save, my commitment is to grow. 💪💰 #LawOfPurposeAndCommitment 🧘♀️”
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“Being financially woke: Realizing your latte is eating into your retirement. ☕🚫 #LawOfSpendingAndSaving”
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“Wanna hear a tax joke? Sorry, they’re too taxing. 😂 But the #LawOfTaxAdvantagedInvesting isn’t! 🧾”
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“Money talks… mine just needs a little more purpose and commitment. 🗣️💰 #FindingItsVoice”
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“Remember: If you save your money now, it’ll save you later! 🚫🛍️ #LawOfSpendingAndSaving”
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“Did someone say tax benefits? Now, you’re speaking my language! 🧾💬 #LawOfTaxAdvantagedInvesting”
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“Money can’t buy happiness, but understanding the 3 laws sure can buy peace of mind. 🌈💵 #FinancialZen”
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“Got commitment issues with my diet, but not with my money! 💪🍕💰 #LawOfPurposeAndCommitment”
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“Asked my money for some space to think… then invested it wisely! 🚀💸 #SmartChoices”
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“Embracing the Law of Spending and Saving. First step: Stop buying avocado toast? 🥑🍞💰 #MillennialMoneyMysteries”
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“Turning my cents into dollars, and my dollars into sense! 🧠💵 #ThreeLawsOfFinance 📜”
