Articles

Your future financial security is dependent on having a retirement savings plan. Where to put the money is not the issue. The choices of where to put the retirement savings are endless. Finding the money to put in the plan is the concern. Here's how to start one on your own, FAST!

The old adage, Pay Yourself First, is without doubt, the best financial advice you'll ever get. If you don't pay you, who will? How do you do that? Here's how.

Out of every bit of income that you make, immediately carve off 10% and put it in an account that you have designated for your retirement savings plan. If you have debt and lots of past due bills, this is probably a scary idea. My advice? JUST DO IT! Making the firm commitment to yourself to operate on 90% of your income is half the battle. As time passes, you'll find you have adjusted to operating on less money.

The most significant benefit of this self created retirement savings plan is the financial security and peace of mind it gives you. You won't worry so much about money. Just knowing that cash is there will make you sleep better at night.

Do you think the whole 10% is an impossible place to start? Take a look at your income from a different point of view. Look at all of the vendors you pay out of your herd earned money every month and get the idea that those vendors are all on your payroll. Is there anyone you can get rid of and operate without? Is there anyone you can cut back from full time to part time status? Just look at the invoices that show up in your in-box every month, and those automatic deductions from your bank accounts and you'll see exactly who is on your 'payroll'.

Here is an example. I was working with a business owner who was having a difficult time cutting company expenses by 10% to put away in his retirement savings plan. We looked at each expense from the viewpoint that the vendor was on his 'payroll.'

Suddenly we were playing a game of firing vendors like the extra $9.95 per month third-party fraud protection on each of his credit cards. We didn't renew the contract on some advertising that wasn't bringing in much new business and found a less expensive alternative and saved $280 a month. We consolidated a portion of his debt to a low interest loan and saved over $300 in monthly finance charges. We sold a lease-purchase piece of equipment he had no use for and paid off the balance. That saved him $239 a month. We even fired his bank and hired a new one with no monthly account charges and got the old bank off his payroll to the tune of $25 a month. Now he has a nice pension fund building up each month.

Why is controlling the flow of money so important? It is the energy and life blood of a business. It is vital to channel it through the income producing areas first to keep it running well. Everything runs better when enoughcash is available. And that includes you, the owner of the company. The Money Management Solutions software guides you towards making the correct decisions about how to use your money to generate more profits and build wealth.

Just by changing your viewpoint about how you use your business' income, you can make a fun game of building your retirement savings plan. Be the Donald Trump of your own company. Take a really close look at who you are paying out of your hard earned cash flow. Don't be shy about saying 'You're Fired!' and pay yourself 10% first by putting that money away in your personal retirement savings plan.

Sandra Simmons, President of Money Management Solutions, has years of experience helping company owners and individuals manage their money to get out of debt. To find out about the Money Management Software she created, visit her website and watch the FREE 5-minute demo video at www.moneymgmtsolutions.com