The secret of the 5-15-80 percent rule

If you want to know why some people are financially secure and stable and why some people never seem to get their act together, just observe the 5-15-80 percent rule.

Was listening to a lecture given to real estate agents recently and the speaker was telling a bunch of agents the following:

5% of the general population create generational wealth. They save, invest, and figure out ways to pass that wealth on to their kids or grandkids and… they teach their children the value of that money so it doesn’t get squandered.

Some of this generational wealth is just a few million. Some of it is 10s of millions. Some of it is billions (with a “b”).

15% are “middle class”. They have some savings, go on some vacations, have decent Christmases, and can afford to buy “toys”. They’re not rich, but they’re comfortable.

When the true middle class retire, they are financially independent. They don’t make excuses for why they didn’t save enough money because they have enough money. They took the time to learn the value of money and they’re smart enough and honest enough to know they need money for their future financial security.

They don’t make excuses. They don’t overextend themselves. They make a dedicated and concerted effort to save money each and every month… no matter what. Even if life hands them a pile of lemons, they make lemonade, and so on.

But… usually they don’t have enough to pass on after they die.

Meanwhile, 80% of people in America will need to have their lifestyle subsidized by the government in some way, shape, or form, or get help from family when they retire or get old because… they never saved enough.

They spend most of their money on stuff they didn’t need or really want. They spent money on things to entertain themselves because they were chronically bored with life or wanted some sort of escape from a hellish job or because they felt that any extra money they had was burning a hole in their wallet or purse. They always made excuses for why they could never save money. They refused to listen to reason or logic… instead they put their fingers in their ears and hoped and prayed everything would work out… somehow.

But they never think about what that “somehow” is.

The amazing thing about all this is that most people start with nothing in life.

And yet somehow 15% end up with enough money to be comfortable their whole life (not just “weekend wealth”).

Question is… do you want to be in the 80% or the 15%?

Or maybe even the 5%?

It’s up to you.

Anyway, if you want more tips and advice to get your wheels moving, go jump on my email list, now.

David Lewis

This post brought to you by //The Rogue Agent//. David has been a life insurance agent, and worked with some of the oldest and most respected mutual life insurance companies in the U.S., since 2004. Learn more about him and his business, here.

This post brought to you by //The Rogue Agent//. David has been a life insurance agent, and worked with some of the oldest and most respected mutual life insurance companies in the U.S., since 2004. Learn more about him and his business, here.