I recently read a piece by financial commentator Suze Orman who is one of the few practical advisors as to how and what to do with your money. In the article she was saying how just saving $100 a month could provide Millennials (ages 26/40) and even GenXers (ages 41/55) a retirement with at least $100,000 at the time of retirement. It would of course require strict adherence to adding that $100 per month and relying on the benefit of compounding interest at least yearly. It was to say the least comforting to me as the founder of the Mathmatecum that such a well renowned author would cite a long-term financial plan that is the very foundation of the Mathmatecum! Because life gets in the way of people’s best intentions the Mathmatecum is set up as a singular contribution vehicle.
The Mathmatecum acts as a means to acquire a lifetime of passive income and also be a reminder of how to save and how much to save. For those who are young or earning at the minimum wage level saving $100 per month is hardly possible. There are currently 20 states where the minimum wage is $7.25, and the highest minimum wage is $15.74 in the state of Washington. The overall savings rate for any working person should be a set dollar amount. This amount cannot be one that is arbitrary but rather should start at one hour’s rate of pay per week. Eventually the goal is working towards 10% of a week’s pay and ultimately to 20% of your income. What a difference between Idaho at $377 yearly and Washington at $818.48 per annum.
So thanks Suze for reassuring me that my thinking is correct and my belief that the Mathmatecum is a perfect cornerstone for building a better financial future for any individual and their family members.
JAI BABA
TTFN
JU
