Take 25% of ones yearly income and add it to a savings account. Making a plan to do this is important. By doing this, one can save for the future. If one makes ten thousand dollars ($10000) a year, one can save twenty five hundred ($2500). That’s 25% of ones yearly income.
Here is what it looks like:
25% of $10,000 is $2,500.
Save $2,500 a year for four years and one will have saved $10,000. Keep adding 25% of ones yearly income to ones saving account and it will be there when one decides to retire. One will have enough to live on for the remainder of their life with a plan by living on a quarter of their income now. Keeping this plan throughout ones lifetime will allow one to life off of their savings for the remainder of ones life. For example: saving $2,500 a year for 40 years will allow someone to live on their savings for 40 years.