Law of Success (21st Century Edition)

THE HABIT OF SAVING 271

These figures tell a tragic story that might as well apply to thousands

of other people as to the young man who kept this account. His actual

saving out of $20 was only 53 cents. He spent $7.47 for items, every

one of which could have been greatly reduced, and most of which could

have been eliminated entirely. And if he also shaved himself and shined

his own shoes, he could have saved every cent of the $7.47.

COMMENTARY

Wayne Wagner and AI Winnikoff, authors of Millionaire, make a similar point in

modem terms. They argue for investment in index funds, which are relatively secure

and typically increase in value at a rate of more than 10 percent per year. They work

backwards from the goal of saving a million dollars.

If you begin Years toa Monthly Daily

investing at million dollars investment investment

this age at age 65 required required

25 40 $179 $5.97

30 35 $292 $9.73

35 30 $481 $16.03

40 25 $805 $28.63

45 20 $1382 $46.07

50 15 $2491 $83.03

Now turn back to the table compiled by the building and loan as-
sociation and observe what the saving of $7.47 a week would amount
to. Suppose the amount this young man actually saved had been only
$25 a month; the saving would have increased to the sum of $5,000
by the end of the first ten years.
The young man in question was twenty-one years old at the time he
kept this expense account. By the time he reached the age of thirty-one
he could have had a substantial amount in the bank had he saved $25