Master Your Paycheck Like a Stoic
Oct 13, 2024Hello Stoic investors,
Today I want to share with you 4 simple but powerful ways to make the most of your paycheck and set yourself up for long-term Financial Success.
Number 1:
Put 10-15% of your paycheck into a retirement account.
Saving for retirement helps you have enough money for the future, and in many countries, it can also lower your taxes.
Number 2:
Put 5% of your paycheck into a secure savings option, like a savings account that offers good interest rates.
This will help you build an emergency fund, which should be enough to cover at least six months of your expenses.
Having this money set aside will give you peace of mind if something unexpected happens, like losing a job or needing to cover a big expense.
Look for savings options in your country that give you the best return to help your money grow over time.
Number 3:
Another 5% of your paycheck should go into the most tax-advantaged investment account available in your country.
Whether it’s a local equivalent to accounts like the Stocks & Shares ISA in some countries or a Roth IRA in the U.S., take full advantage of any account that allows your investments to grow tax-free.
Once you’ve set that up, consider investing in low-cost global ETFs to diversify your portfolio and ensure steady, long-term growth.
Number 4:
Finally, 1% of your paycheck should be invested in the best asset available:
Yourself.
Whether it's learning a new skill, taking a course, or attending a seminar, investing in personal development will always offer the best returns over time.
Let’s normalize having a monthly budget for self-improvement, because your personal growth fuels your financial success.
These 4 steps are easy to implement and will make a big difference in your financial future.
The key is consistency—investing in your retirement, savings, and personal development every month will put you on the path to long-term financial stability and growth.
So, note down these 4 steps and start investing today:
1. Put 10-15% of your paycheck into a retirement account
2. Put 5% of your paycheck into a secure savings option, like a savings account that offers good interest rates
3. Put 5% of your paycheck into the most tax-advantaged investment account available in your country
4. Invest 1% of your paycheck in the best asset available: Yourself!
