Making 6 figures? How to avoid being one of 69% of Americans who have less than $1000 in the bank.

Are you making a 6-figure ($100,000) or higher income? How much do you have in saving?  How much do you save per year?

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In the latest survey (September 2016 by GoBankingRates) on 7000 American adults, 69% said they have less than $1000 in the bank. Close to half of participants who earn between $100,000 and $149,999 have less than $1000. One-third of participants with incomes of $150,000 and above said that they had less than $1000 in the saving. 6% of those high income earners had nothing in the bank. Where did their money go? What will they do in case they need more than $1000? What will they do in case of emergency? Taking a loan? Using credit cards?

If you are not of those who have difficulty with saving money, you can skip the rest of this article. My primary goal is to show those who have troubles with saving money how they can save even just small amount and possibly retire being a millionaire if they do it right. Saving in my definition is the money you put away without touching it for expenses.

The following steps work for a man who makes one cent as well as the man who makes millions or billions. If you only make 5 figures, it works for you as well.

A warning before you proceed. The method I am about to give you is simple but requires your persistence to apply. You will be rich if you follow it consistently.

First
, save one-tenth of what you earn and dont touch it. Bob Proctor and Earl Nightingale put it in another way: pay yourself everything you earn from 8am to 12pm on Monday. If you earn $1000 per month, put aside $100 for your saving. Use only $900 to pay for your expenses. The hardest part is to have discipline not to touch the $100 you save. The most important thing to remind yourself of if you are tempted to use your saving is that you will spend your future without return.
Second, for every dollar you save, make it work for you. Make your savings your slaves. Make their children your slaves also. Let’s say that you put $100 into a bank that would pay you back 5% in interest annually. At the end of a year, you would have $105. The second year you would earn additional 5% on your $105 and end up with $110.25… in other words, your money is compounded at 5%. The first $100 is your slave. Its first 5% is its child which is also your slave. Each additional year you would get more slaves that work for you to earn your wealth.
If you start with $100 and continue to put in $100 each month, with 5% interest, by 10th year you will end up with $15,662.10.
Third, control your expenditure so that you never have to tap into your saving. Better yet, slash your expense so that you may have some extra dollars to put into your saving. Remember #2, your saving will work for you along with its children, grandchildren, …

Fourth, guard your capital. Remember that getting rich is not a quick venture. You must be patient and not jump into any venture that causes you to lose your saving.

Fifth, be disciplined and remember step #4. Warren Buffett follows this principle by saying “the first rule of investing is to not lose money. The second rule is to never forget rule #1”.

If you start with $100 and continue to put in $100 each month, with 5% interest, by 10th year you will end up with $15,662.10. With this amount, you are better than 60% of those who earn more than $150,000 per year. Right after your first year, you will be far better than 69% of American adults who have less than $1000 in the bank.

As I warned you earlier, you must be disciplined to religiously put $100 into saving every month without fail. You must find a way to invest your saving so that it can compound at 5% over 10 years. This is a compound interest of 5%. Buffett recommended index fund, which is historically very safe to earn above 5% return.
Another discipline you must develop is to listen only to people with credibility and expertise. In your endeavor to invest your saving, listen only to people you can fully trust and they really know what they tell you as well as they have track records to prove.

Watch out for advices from your friends, relatives, co-workers, or even strangers. Advice is too cheap. You will lose money if you do not know what you are doing.

Now, go and make a plan for your saving. Pay yourself at least 10% of what you earn, make your saving work for you, be consistent, and listen only to people with credibility. You are on your way to become rich and enjoy your life in comfort.

 

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PS: if you are looking for banks that pay over 5%, look over at the interest rates around the world. Please factor in the inflation rate when considering to make an investment.
A much safer investment is a low-cost index fund. The average return of the S&P; 500 stock index for the 10 years ending Dec. 31, 2012 was 7.10 percent. The S&P; 500 index mutual funds from Fidelity and Vanguard produced returns of 7.03 and 6.99 percent annually, respectively. Looking at bond index funds, the Vanguard Total Bond Market Index Fund produced a 10-year average annual return of 5.07 percent, compared to 5.20 percent for the Barclay’s bond market index that the fund tracks. (Source: Zach.com)

About the author: Hoan Do is a certified leadership coach with John Maxwell Team. Hoan have led multiple teams at Symantec Inc. across the globe delivering world-class solutions to protect consumers and businesses. Hoan is an expert in building highly performing teams. He believes that the best leader is the leader that could grow his followers to be leaders. Hoan has been organizing mastermind groups at work to share with other leaders about transformational leadership and coaching. He has trained many leaders both inside and outside Symantec via mastermind groups, workshops, and one-on-one coaching. Hoan perfected his own method “think and lead rich” to start leaders with the right mindset before equipping them with a complete leadership development solution.
If you are curious about the above method and how you can apply it to your life successfully, open your email and send me an inquiry at coach@hoanmdo.com

 

20 minutes that can change your life

20 minutes that can really change your life. REALLY!

I came across a teaching from Earl Nightingale on the subject of 20 minutes that can change your life. Here’s my summary of what Earl taught.

Ninety five percent of the people in the world would rather die than think. Three percent think they think. Only two percent of the people think. Those two percent sit on the top of list of the wealthiest people.

People are not poor because they want to be poor. They are poor because they do not decide to be rich. Those who earn more money are those who decide to earn more. Decide right now that you will be wealthy. Write down the amount of money you want to make annually.

Ideas are free. One idea can make you rich. So how do you come up with ideas? and how to make yourself think?

Start waking up a little earlier. If you wake up an hour earlier than you are used to, for 5 days per week, you will get 5 hours extra. For a year, you will have 260 hours extra or 32.5 8-hour days. Use this time to think and come up with ideas.

Now, before you begin, get yourself a cup of coffee or tea or do a small exercise to be fully fresh and ready. With a notepad and a pen:

  1. Sit down
  2. Write on top of the notepad your goal
  3. Ask yourself: “what will help me move closer to my goal?”, “what are some ways to increase my contribution or services?”, “how can I improve what I am currently doing?”
  4. Write down all ideas that come to your mind. Write everything down even the most stupid idea. Try to write down at least 5 ideas.

If you write down 5 ideas per day for 5 days per week, you will get 25 ideas per week. For a year, you will get 1300 ideas. The law of average will work in your favor. At least one idea will make you rich.

What else will this practice do to you? It will help you focus on your goal and help keep your goal in presence.

Another critical lesson also from Earl Nightingale is that over 95% of people coming across this little secret will not put it to practice. They just listen or read without actually sitting down with a pen and a notepad. That’s why majority of people stay poor. If you don’t have a role model, look at what everyone else is doing and don’t do the same.

Pick up your pen and notepad. Start writing down ideas that can make you rich. This is a great and simple start.

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  6. Making 6 figures? How to avoid being one of 69% of Americans who have less than $1000 in the bank.
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About the author: Hoan Do is a certified leadership coach. Hoan have led multiple teams at Symantec Inc. across the globe delivering world-class solutions to protect consumers and businesses. Hoan is an expert in building highly performing teams. He believes that the best leader is the leader that could grow his followers to be leaders. Hoan has been organizing mastermind groups to share with other leaders about transformational leadership and coaching. He has trained many leaders via mastermind groups, workshops, and one-on-one coaching.

If you are curious about the above method and how you can apply it to your life successfully, open your email and send me an inquiry at coach@hoanmdo.com

PS: Earl Nightingale’s the strangest secret: 

Here are some of what people said about me:

Hoan is passionate about people and adds value in whatever way he can. I knew him may be for couple of years when he started to add tremendous value to me, by introducing Leadership principles of John C Maxwell. I was very hungry to learn leadership and i feel him introducing me to Maxwell’s teachings … Continue reading “1. Aravinthan Narayanan, Engineering Manager and Leadership Coach”

1. Aravinthan Narayanan, Engineering Manager and Leadership Coach

Hoan has helped me to develop a process that I use for decision making that allows me to get to the roots of what I really trying to accomplish. He is calm, inspirational and motivational. He has also taught me different techniques which I apply daily that have positively affected  my success at work and … Continue reading “1. Dr. Richard Greene – Peak performance coach and sales director”

1. Dr. Richard Greene – Peak performance coach and sales director

Hoan has immense leadership and business knowledge. With a heart to truly add value and help people reach their full potential. This is a perfect combination for growth. He is able to help people new to business as well as people with decades of experience.

1. Jo Whipp – Leadership coach, speaker, and trainer

Hoan, I truly admire your passion & commitment to studying, coaching, and teaching real transformational leadershipand your dedication to lifelong learning and continual growth & development so that you can help make a difference in society. I appreciate you so much because every time you help me grow, I am able to help those around … Continue reading “1. Kim Duyen Tran Nguyen”

1. Kim Duyen Tran Nguyen

Hoan is a powerful coach. Through attentive listening and thought-provoking questions, Hoan helped me realize the limiting beliefs that kept me from achieving what I desired. After working with Hoan, my mindset shifted entirely and I embarked on a step-by-step plan toward what once seemed impossible. Whether you are seeking financial abundance, stronger relationships, or … Continue reading “1. Michael G, Manager”

1. Michael G, Manager

How to guard yourself against negative influences

 

Negative influence is everywhere. It exists outside you. You can sense it through your five physical senses: hear, see, touch, taste, smell. It exists within you in form of thought. Negative influence often work on you through subconscious mind, therefore, they are difficult to detect.

Napoleon Hills stated that the most common weakness of all human being is the habit of leaving their mind open to the negative influence of other people. This is damaging as most people do not recognize that they are cursed by it. Even if they acknowledge it, they neglect or refuse to correct it until it becomes an uncontrollable part of their daily habits.

Clean out your medicine chest, throw away all pill bottles, and stop pandering to colds, aches, pains, and imaginary illness.

Keep your mind closed against all people who depress or discourage you in any way.

Do not expect troubles as they have a tendency not to disappoint.

Use your willpower to build a wall of immunity against negative influences in your own mind.

AND the BEST way is to deliberately seek the company of people who influence you to THINK AND ACT FOR YOURSELF.

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Other popular articles:

  1. Life lessons from a Uber driver who was laid off
  2. Leaders are readers
  3. Making 6 figures #2? How to avoid being one of 29% of American households with no retirement savings
  4. How to guard yourself against negative influences
  5. 20 minutes that can change your life
  6. Making 6 figures? How to avoid being one of 69% of Americans who have less than $1000 in the bank.
  7. A SPECIAL GIFT FOR YOU – WHY SHOULD I HIRE A COACH?
  8. How to get your dream job with no experience – Lessons from Bill McDermott
  9. This simple skill is worth millions, helped many become millionaires, billionaires

About the author: the post was written by Hoan Do, a certified Samurai leadership expert. If you are curious about the above method and how you can apply it to your life successfully, open your email and send me an inquiry at hoandojmx@gmail.com

 

Here are some of what people said about me:

Hoan is passionate about people and adds value in whatever way he can. I knew him may be for couple of years when he started to add tremendous value to me, by introducing Leadership principles of John C Maxwell. I was very hungry to learn leadership and i feel him introducing me to Maxwell’s teachings … Continue reading “1. Aravinthan Narayanan, Engineering Manager and Leadership Coach”

1. Aravinthan Narayanan, Engineering Manager and Leadership Coach

Hoan has helped me to develop a process that I use for decision making that allows me to get to the roots of what I really trying to accomplish. He is calm, inspirational and motivational. He has also taught me different techniques which I apply daily that have positively affected  my success at work and … Continue reading “1. Dr. Richard Greene – Peak performance coach and sales director”

1. Dr. Richard Greene – Peak performance coach and sales director

Hoan has immense leadership and business knowledge. With a heart to truly add value and help people reach their full potential. This is a perfect combination for growth. He is able to help people new to business as well as people with decades of experience.

1. Jo Whipp – Leadership coach, speaker, and trainer

Hoan, I truly admire your passion & commitment to studying, coaching, and teaching real transformational leadershipand your dedication to lifelong learning and continual growth & development so that you can help make a difference in society. I appreciate you so much because every time you help me grow, I am able to help those around … Continue reading “1. Kim Duyen Tran Nguyen”

1. Kim Duyen Tran Nguyen

Hoan is a powerful coach. Through attentive listening and thought-provoking questions, Hoan helped me realize the limiting beliefs that kept me from achieving what I desired. After working with Hoan, my mindset shifted entirely and I embarked on a step-by-step plan toward what once seemed impossible. Whether you are seeking financial abundance, stronger relationships, or … Continue reading “1. Michael G, Manager”

1. Michael G, Manager

 

A SPECIAL GIFT FOR YOU – WHY SHOULD I HIRE A COACH?

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At the exact 9am on Tuesday, my client Michael called me for our coaching session. Michael mentioned in his pre-coaching form that he did not know what to do and how to proceed with his plan, which in fact was his life-long dream. He was essentially stuck. Ten minutes into the session, Michael was enlightened. Not only he got himself 10 different ways to proceed right away, but also he got a crystal clear picture of his plan. We did not stop there. We continued to work his mind through till he got all action items planned out with deadlines and accountability. We dealt with multiple obstacles that could arise when Michael put his plan into action. By the end of the session, Michael was the happiest person on the earth and 100% committed to execute his plan. In our next session, Michael cheerfully shared his accomplishment and was well on his way to have a big win.
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What described above is essentially what coaching is about. When I talked about coaching to people, most did not know the difference between coaching and mentoring. They thought that a coach is an expert in the area that the client wants to get help with. They basically thought coaching is the same as mentoring. However, coaching is very different from mentoring. I did not know Michael’s business at all. By the end of our session, Michael figured out his plan of actions. In some way, coaching is a real art to bring out the best in the client and get the client to do what he/she is capable of doing. In other words, I as the coach helped Michael tap into his 90% normally unused potential.
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Steve Chandler, my future teacher and the author of more than 35 books, recorded an outstanding piece on why someone would hire a coach (now, no one needs a coach. Successful people know that they want a coach to help them succeed). Steve benefited tremendously from his coach. Even though Steve is the world-class coach and known as the godfather of coaching, he continues to hire his coach. You can listen to his recording at  Steve Chandler on why someone should hire a coach
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Everyone needs a coach. It doesn’t matter whether you’re a basketball player, a tennis player, a gymnast or a bridge player. – Bill Gates

I believe without a coach, people will never reach their maximum capabilities. – Home Depot’s CEO Bob Nardelli
The best advice I ever got is to have a coach. Everyone needs a coach. – Google’s ex-CEO and Chairman Eric Schmidt

Enter your email to subscribe to notifications from this site

Join 4,662 other followers

Other popular articles:

  1. Life lessons from a Uber driver who was laid off
  2. Leaders are readers
  3. Making 6 figures #2? How to avoid being one of 29% of American households with no retirement savings
  4. How to guard yourself against negative influences
  5. 20 minutes that can change your life
  6. Making 6 figures? How to avoid being one of 69% of Americans who have less than $1000 in the bank.
  7. A SPECIAL GIFT FOR YOU – WHY SHOULD I HIRE A COACH?
  8. How to get your dream job with no experience – Lessons from Bill McDermott
  9. This simple skill is worth millions, helped many become millionaires, billionaires

About the author: Hoan Do is a certified leadership coach. Hoan have led multiple teams at Symantec Inc. across the globe delivering world-class solutions to protect consumers and businesses. Hoan is an expert in building highly performing teams. He believes that the best leader is the leader that could grow his followers to be leaders. Hoan has been organizing mastermind groups to share with other leaders about transformational leadership and coaching. He has trained many leaders via mastermind groups, workshops, and one-on-one coaching.

If you are curious about the above method and how you can apply it to your life successfully, open your email and send me an inquiry at coach@hoanmdo.com