After surviving a car crash in January 1998 that left me with an 80% brain disability, we defeated the limiting diagnoses of various Doctors by making a full recovery. While recovering, we read for a Law degree and then a Postgraduate Diploma in Investments, Insurance, and Tax. After graduating Top of the Class on a Graduate Development Program, we went on to work at Barclays Capital in London. As an Investment Banker, we raised a Billion Dollar Bond for the Dubai Electricity & Water Authority. People asked us how we turned our life around so quickly, and specifically how we got to the point of financial wellness. Most assumed that we had made it by playing the stock markets, trading complex financial instruments like derivatives, gilts, and forex. But it had nothing to do with that.
We simply followed the law of ten percent. This law says that 10% of what you make is yours to keep. Whether you are a Businessman working in a Corporate, an Entrepreneur running your own business, or a junior selling lemonade at school; take 10% of your salary out each month and save it. If you can do more, do it. But never less.
Say that you earn $50 000 a year and you save 15% of that, you would have created a capital base of $7500 in twelve months, and assuming your salary increases by 5% in year 2 coupled by some growth on your money from the first year, you would have saved almost $16k after twenty-four months. Now if you are forever broke, how does the prospect of having $16k in your bank account make you feel ? When last, if ever, did you have $16k in your bank account ? Our dear friends, it’s not what you make that matters. Rather, it’s what you keep that’s important.
Emotionalize your ten percent. Visualize a bag of money with your name on it, becoming bigger and fatter, month in and month out, to the extent that you need to keep on replacing the bag because it keeps getting too small ! Keep saying it to yourself; ten percent of what I make is mine to keep. Internalize it. Say it repeatedly to yourself, day in and day out, for any thought that is emotionalized becomes magnetized and attracts similar like thoughts.
Of one of our Uncles, Uncle S practiced, leveraged and exploited the Law of 10% and become a very rich man. In the early days of his career, he sold encyclopedias on commission for a living. Today we have tools like Google and Wikipedia to procure information and knowledge. But in the sixties when the internet didn’t exist, World Book and Britannica were common sources of information that parents used to help their kids with homework. In months like January, February and March when business was robust and the money kept coming in, he bought one-ounce gold coins. Some months were so good that he bought two gold coins. But during the leaner months like November and December when business was slower, he could have aborted his strategy. But he hung in, and instead of buying nothing at all, he would but a one-tenth ounce gold coin. At that time, the price of gold was about $100 per ounce, and the Rand was such a strong currency that one Rand would buy him two US Dollars. Due to the growth in the price of gold from $100/oz to $1000/oz coupled by the weakening of the Rand over the next three decades, he was able to hang his shoes up by retiring an entire decade earlier than planned!
Excerpt from Highway to Heaven, Isaac Lakhi’s best-seller. To learn more about our FREE 5day Coaching & Mentoring Challenge, click here.