The 40/40/40 rule of life


Greetings!  Today I would like to talk about the 40/40/40 rule of life.  I’m sure you have heard of it, but you might not know it by this name.  The 40/40/40 rule of life is what most Americans live by.  They work 40 hours a week, working for 40 years of their life, and then retire on 40% of what they previously made.

Most of us have been taught the same things.  Go to school, get good grades so you can get a good college education, and then hope to make good money.  If you have read the ‘Rich Dad, Poor Dad’ books, then you will know that this philosophy is what Robert Kiosaki’s poor dad taught him, which is exactly what most of us were taught.  There is a much better way!  A way in which we don’t have to live by the 40/40/40 rule.

Let’s do some quick math and see how your retirement goal is fairing and if you are on your 40/40/40 schedule.  If you make $100,000 per year, then based on this rule when you retire you will live off about $60,000 per year OR $5,000 per month.  To live off $60,000 per year, you would need to have about 1 million dollars in savings earning at least 6% interest.  Are you on track to have 1 million dollars saved for retirement?  If your baseline numbers are different, you can do the math yourself and see if you are on track for what you need at retirement.

Let’s take a look at another option instead of the 40/40/40!  Has owning your own business ever crossed your mind?  Starting your own businesses can be extremely risky since nine out of ten business fail.  They can cost a ton of money to get started increasing the risk reward.  There is another way to own your own business with very little startup costs, and that is to join a Network Marketing company.  You get access to being a business owner and all the benefits that come with it, without all of  the risk. Most companies in this industry cost less than $500 to get started, which means low risk.  However, the return on investment could be out of this world.

Let’s compare apples to apples.  Doing the 40/40/40 plan mention above, you would have to have saved money each month of your 40 year work life.  Once you had 1 million dollars in the bank you would earn about $5,000 per month.  Now let’s look at the network marketing alternative.  Look at your company’s income disclosure or compensation plan, and you will see what level of the company you will need to reach to get that same $5,000 per month.  Statistics show that the average person should be able to do that in about three to five years.  The harder you work, the faster you will get there, the less you work the longer it will take to get there.  Would you rather spend the next three to five years building a passive residual income paying you about $5,000 per month, or spend the rest of your life saving money until you reach the 1 million dollar mark?  Then hope you can earn 6% interest so you can be paid $5,000 per month.

What if you are NOT Average?  At our last company training event one of our speakers said that it took him eight years to finally figure out this industry.  That year he finally made his first $100,000, and has since hit the top rank in our company.  Let’s say you are not average and it takes you 10 years.  Would you be willing to put in the time to learn how to do this business and be willing to actually do the daily tasks to make it happen even if it took you 10 years to hit $5,000 per month?  Time will continue to pass, so would you rather do something different to change the course of your life?  Remember this is part time work so you can continue working your current job saving up for your 1 million as part of your plan A.  However, the more you work this business, even part time, if you commit to it and Never Ever Quit, you will soon see that this option will quickly become your Plan A.  I would rather work 10 years at this, than 40 years with the same results.

Time for the BIG Question: Do you want to continue doing what you are currently doing and hope to have enough for retirement, or are you willing to look at another option that can get your to your retirement goals much quicker?

You be the Judge!

Please note: I reserve the right to delete comments that are offensive or off-topic.

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