Wealth Today

I’ve increased my 401k contribution to 10%. For the first time, I’m now paying myself first. That first 10% of my check comes off the top and goes directly to me. Well, almost, it goes to my 401k. I’ve actually lost money since I first decided to join my companies 401k because the price per unit is less than what I paid for my first contribution, but I’m staying optimistic. I expect dollar-cost-averaging to come to my rescue and continue to help my nest egg grow.

The third lesson from The Wealthy Barber is to make sure to take care of retirement. This is separate from paying yourself first. This is making sure that you’re able to afford your desired lifetime upon retirement.

David Chilton says it best in this quote:

Your years in retirement should be among the best years of your life, so you owe it to yourself to do everything possible now, without crippling your current standard of living, to enable you to enjoy them to the fullest.”

Chilton advises using IRAs, CDs, and 401k as vehicles in the financial planning for a wealthy retirement.