Start Your Own Retirement Savings Plan

A retirement savings plan is essential to your future financial security. Where to put the money is not the issue. There are numerous choices of where to put your retirement savings. The question for most people is where do they get the money for the plan. Here’s how to start one on your own, RIGHT NOW!

The old adage, Pay Yourself First, is some of the best money management advice you will 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 stash it in your retirement savings plan. This is more than likely a scary idea for those with debt and past due bills to pay. My advice? JUST DO IT! You will find that you CAN operate on 90% of the income if you decide you are going to. As time passes, you’ll find you have adjusted to operating on less money.

The biggest benefit of this self imposed retirement savings plan is the financial security and peace of mind it gives you. You won’t spend so much time and attention worrying about money. Just knowing that cash is there will make you sleep better at night.

Do you think the whole 10% is too steep a step to start with? Take a look at your income from this point of view. Go over all of the suppliers you pay out of your cash flow every month and get the idea that those vendors are all on your payroll. Is there anyone you can fire and operate without? Is there anyone you can cut back to part timer status? Just look at the invoices that show up in your in-box every month, and/or those automatic deductions from your credit and bank accounts and you’ll see exactly who is on your ‘payroll’.

Here is an example. I was working with a company owner who was having a difficult time cutting operating expenses back 10% to set aside in his retirement savings plan. We looked at each expense from the viewpoint that the vendor was on his ‘payroll.’

Right away we were making a game of firing suppliers like the extra $9.95 per month third-party fraud protection on each of his credit cards. We cancelled the expiring 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 interest charges every month. We sold a lease-purchase piece of equipment he was not using and paid off the note. 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? Money is the energy and life blood of a business. It is necessary to channel it through the income producing areas first to keep it running smoothly. Everything runs better when enoughcash is available. And that includes you, the owner of the business. Our Money Management Software guides you towards making the correct decisions about how to use your income to make more money.

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 hard 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 setting aside that cash in your own retirement savings plan.

Sandra Simmons, President of Money Management Solutions, has years of experience helping professionals and private individuals manage their money to eliminate debt. To learn more about the Money Management Software she created, watch the FREE 5-minute demo video on her website at www.moneymgmtsolutions.com

- Sandra Simmons

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