Now I must admit you will not become filthy rich with your money sitting in the bank. You may draw a few percent interest, but no where near the amount I am talking about. That's why you must live the life of an exponential equation. You must actively seek ways to double your money, and you need to do it quick. The price of silver and gold followed an e^x equation for many years. Now it has dropped slightly, but it is still multiple times the amount it was just a decade ago. Look at the below graph and observe the similarities to an exponential function for the price of gold.
Silver is also another precious metal that followed a similar mathematical function. Silver is the real secret, because most people can't afford to buy ounces of gold. The reason silver is good is due to the compound rate, that is, you can afford to buy many more ounces of silver than you can gold. If silver goes up a dollar and you own 60 ounces, then you made $60. If you own an ounce of gold and it goes up $20, then you only made $20. So the secret is in the number of units you own. The goal is to continuously increase both over time. To make it a discipline to consistently buy both. Gold and silver will never go down. It may go down slightly, but it will always have value. So it be wise to invest in gold and silver.
Now lets talk about your savings. Your 40% you save can be broken up into investment money, or you can use your 50% checking account balance to buy investments. This is even smarter because you are actually saving more. You have to vigorously avoid debt and rigorously save. You can do it. Many people have. And then when you start to break towards the vertical asymptote you can afford to spend a little more. My father used to tell me when I was young "Live like no other today, and you can live like no other tomorrow."
This is very wise advice, because it teaches you the importance of saving. Living within your means. Don't go out and spend your income tax return on a payment of a new car, keep your clunker for as long as it still works. Put your income tax return in something with real value. Either that or save all of it, but no matter what, put 40% in savings. This is the wisest advice I have learned.
You can become a millionaire in 20 years if you follow this and continuously seek wise investments. Create a business with your savings in the future and then watch your accounts grow. Don't feel bad to become rich. The man that says rich men are evil, obviously didn't have any money of his own, he probably made some bad decisions in his life and that's why he was pissed at the rich. It may be true some rich people are frugal to say the least, but is it or is it not true, a poor man can't do much of anything to help the poor? It takes responsible rich and disciplined people to save their money and spend it wisely. Don't fall into the Robin Hood garbage. Take responsibility for yourself and begin to save. Even if you never become rich, you will always be better off then living pay check to paycheck.
Now if you do in fact currently live paycheck to paycheck, this may be a little more difficult, but its not impossible. The reason you live paycheck to paycheck is probably because of a liability you mistook as an asset, more than likely a new car or a fancy house. An asset puts money in your pocket. A liability takes money out of it. So a house or a car is only an asset if it is paid off and you are making money with it.
Do this, buy the book "Rich Dad Poor Dad" Read it, and read it 5 more times. Take it into your own hands to learn from rich people. Learn from the poor people also, everyone has something to teach, but above all, begin to discipline your life to reflect an exponential equation. If you can't because your expensive car payment is stopping you, ditch the car and get one that will help you live within your means. Because any savings is better than no savings.
Blessing and Wishes of Prosperity to you all.