But wait, it gets better. Not only can you save up to 16% of your annual gross income, but, and here's cool part, many companies will match a percentage of your funds, ranging anywhere from 4% to 50% and BEYOND, depending on back-end benefits your company offers. So, let's say that your company offers you a 4% matched-funds package with your 401k...Do you realize power of this important wealth building, tax-free device? You can give yourself a raise...A Tax Free Raise....A 4% raise...Right now. Simply, by participating in your 401k.

Now, for most excellent part of deal. The 401k can be set up for automatic contributions, pre-tax. So, your employers’ accountants will automatically take your money out, and match funds, and this will all be done effortlessly, with out any work on your part whatsoever. This is an amazing passive, easy to do, wealth building mechanism.

So, as far as saving your pennies go...If you have a little piggy bank next to your bed, and no 401k going...Throw piggy bank away...It's worthless. You need to START by setting up your 401k, and extracting all those amazing benefits from this wealth building vehicle.

One other thing: Usually, a company is only required to match funds up to 6% of your salary. This is a great benchmark, a great goal to work towards. Try to set up your 401k at 6% of your salary, and then increase it as you can. You will be goose-bump amazed at how LITTLE this impacts your take home pay, because again, 6% is being taken out of your gross salary, before taxes are taken out.

3. On Millions and Millions and Millions of Dollars!:

Wait! Let's do some math!!! What would happen if...?

If you earned $50,000 a year, and let's say you worked up to 10% participation on your part, with 6% matched funds from your employer... How long would it take to get to a million dollars?

Well, let’s assume you start with a zero balance at age of 30, with an 8% rate of return on average for your investments, an expected 5% annual raise, and an expected 4% rate of inflation. Now don't let these facts get you overwhelmed....You'll work your own details out later. Here's point:

Long story short, you get to $1,000,000 at approximately age 59. Then, this account will pay you 75% of your pre-retirement salary until age of 85!!!

Does that sound pretty Good?

For me, that sounds AMAZING!!! The reason why, is because you can think of 401k as your built in Benjamin Franklin penny-saving plan, without hardly lifting a finger. It is your back-up, it guarantees you a happy and secure retirement, possibly allowing you to retire while still in your 50's, and like I told you before, you will HARDLY NOTICE participation because money you are putting into 401k is completely tax sheltered, so you don't feel sting come payday.

4. Conclusion:

Wealth happens in a series of moments, from day to day, week to week, month to month, year to year, decade to decade, generation to generation....If you can build wealth and prosperity as a lifetime endeavor, you can truly begin to understand what financial wealth is, and how Benjamin Franklin acquired it.

The better you get, more of basic steps that you take, sooner you can graduate to more advanced steps, resulting in faster wealth building, and resulting in greater acquisition of millions and millions and millions of dollars, under rising of your very own, prosperous morning sun.

But, of course, it starts with pennies. We’ve enjoyed providing this information to you, and we wish you best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.

3. THE SPENDING DUCKIE!

A: Believe it or not, spending duckie is a different duckie then budget duckie.

B: See, spending is an action that you take, whereas budgeting is more a planning process. Now, how do you spend? Do you use your ATM card, or your VISA, or CASH? Do you spend what you have, do you spend what you need, or do you spend to gratify what are actually your wants and desires, right now, no matter what, irrespective of your budget, and without control or measure?

C: You see I believe that spending is a behavior pattern, and a habit, and it can be changed, and you can change! It is also a reflection of your values, and of your goals. So, you will need to deal with this, in order to get to that “Financial Wizard” that you know is deep inside you.

D: Line this ‘lil duckie up. Again, recognize it’s something you need to grasp, and then go seek help. Don’t rely just on yourself, because if you have poor spending habits, chances are, they need to be corrected by someone who has good spending habits. That said, spending is a skill, just like anything else. It’s a tiny little thing. A cute lil’ duckie. You can do it.

And now, on to last cute, tiny, lil’ duckie:

4. THE lil’ FICO DUCKIE!

A: Sometimes, your credit may be in need of attention. Well no big deal, but neglect this no longer.

B: You CAN do something about it, and you CAN work towards cleaning your credit up, increasing your FICO score, and getting your credit to reflect new you, “Financial Wizard” you.

C: Many of items on your credit report can be challenged, explained, or dealt with in a professional manner. The first step is always to get a copy of your credit report. Find out exactly where you stand. The second step is to assess it, either on your own, using a service, or using a professional. The third step is to form a plan to address credit report, and fourth step is to take action.

D: But with that said, it would be wise to deal with first 3 issues of debt, budgeting, and spending, prior to dealing with credit report. I say that because your FICO score is really just a reflection of other 3 issues. So, deal with them first.

E: But once you’ve got your debt, budget, and spending under control, please realize that your credit is a manageable, tangible, and workable problem, with workable solutions. Seek out professional advice, so that you don’t have to go at it alone, and before long, you’ll have a squeaky clean credit report. Of course by that time, you’ll be well on your way.

CONCLUSION:

So that’s 4 lil’ duckies. They ain’t no BIG THING, just like I said. But ignore them no longer. Neglect them no longer. Avoid them no longer.

But don’t be afraid of them. They’re just 4 cute tiny ‘lil duckies, and they’re just looking for a little attention. The are also, of course, very foundation and health of your financial house. Build a home on toothpicks, and eventually, you will wind up with a pile of lumber.

Not a great place to live, if you’re a cute ‘lil duckie.

We’ve enjoyed providing this information to you, and we wish you best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.

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