Today, host Joe Pantozzi challenges you to rethink your financial habits and brings a challenge for you to save half of your income. This episode will explore the concept of Parkinson's Law and how it impacts your savings.
Joe presents a timely call to action that can change your financial trajectory. You will get to know what is stopping you from saving more and how to overcome that.
Tune in to discover the steps you can take to break the cycle of bad financial patterns.
Show Highlights
Time for a challenge for you! [00:12]
Discover the need for financial reflection [00:52]
This explains the lack of savings in your account [01:50]
Find out how Parkinson’s Law can help [02:05]
Learn what is not letting you save half of your income [02:53]
How can we break the cycle of bad financial habits? [03:16]
Do you think your financial patterns are okay? [03:34]
Here is the first step to increase your savings [03:56]
Welcome to make youe Wealth Work, the podcast where wealth becomes your greatest ally in achieving your dreams.
Joe Pantozzi:
Let me start your day off with a challenge. It's a good day to have a challenge. You've got too many things going on in your life that are so easy.
You wake up the morning, you have a great workout. You have time of devotions and contemplation and meditation. You have a great breakfast. You have some phone calls from family.
Your life is just going swimmingly. You're a great job, you own a great company, you make good money. And here's a problem. I'm spending all the money that's coming in.
A client of mine said, I've got a fire Amazon. I love that. I've got a fire Amazon. So let's look at all the money you've made in the last 10 years. Let's just say you made $100,000 a year.
In the last 10 years, you made a million dollars. Why is it so outrageous for you to conceive of saving half that money? Think about it. Half that money. Let's do some complicated high level math.
Forget interest rates, forget earnings. Just take the dollars, okay? You made a million dollars in 10 years. It's gross. A million dollars. You saved half of it. You've got $500,000 in the bank.
Now you're going to say to me, wait a minute, I don't have a million dollars. I didn't net, I didn't take home a million dollars. I paid some taxes. Fine, you paid 20% taxes. You actually took home $800,000 in the past 10 years.
You saved half of it. You've got $400,000 in the bank. Why don't you have that? Well, look up Parkinson's Law.
That's the primary reason why you don't have $400,000 set aside. Parkinson's Law has you by the throat. You can play with all the numbers that you want. You can say that you're living on more than you make.
You're spending more than you take in. There's the key, there's the clue. There's the tip of the iceberg.
We're not talking about putting money in any kind of a interest bearing account or an account that's getting earnings. We're talking about putting the money aside. And I know that you won't put it aside and look for zero earnings. That's not the point.
I'm trying to get to the core number here. The biggest thing stopping 95% of you from saving half your income is not the scarcity of appropriate financial products.
The critical thing stopping you from saving is the decision not to save. You've created a habit of not saving. That's also a process. It's a routine. It's something that you do on a regular basis. You decide not to save.
You decide to put it off. You decide to procrastinate. You've perfected that habit. You've looked at everybody else.
You see that everybody else is in the same boat as you and so you think you're okay. So here's my challenge to you. Write down all the reasons why you can't save half your income. It's not going to be one reason.
It's not going to be five reasons. It might be 50 reasons. Write all the reasons down and agree with yourself on all the reasons why you can't save half your income.
That's my challenge to you. Get back to me. Send me a note through our website, alphamegawealth.com let's talk about it. Happy to have a conversation.
I'm not going anyplace further than just this conversation. Are you interested in saving half your income? Let's talk about ways to get there. But the first thing you've got to do is understand, acknowledge.
Admit where you're at today. Talk to you soon. Keep up with us. Make your money work.
