50-30-20 MoneyPlan | Page 21

The growth is less when adjusting for inflation, but still, you reach $1 million real today dollars in 44 years from saving just $400/month! That’s not even $100 per week! So over the long run, everyone in this course, utilizing the power of compound interest, can become a millionaire, and in real inflation adjusted dollars. I hope that these illustrations of the power of savings have given you great motivation to manage your finances in a way that allows you to save at least 20% of your take-home income. The best, and most important, way to start to do this is by making sure that your fixed expenses – those things that you have to pay every month and cannot easily get out of – do not go over 50% of your take-home income. A pie chart of the 50-30-20 MoneyPlan looks like this: