Remember the tagline, “Fall into the GAP”? Well, a number of years back we started McFie Insurance’ radio program out by reading this tidbit of wisdom from King Solomon about life; “A feast is made for laughter, wine makes life merry, and money is the answer for everything.”[i] Fascinatingly, several folks thought I was quoting from some pagan tome. Maybe they were confusing this quote with Oscar Wilde’s writing where he says, “Young people, nowadays, imagine that money is everything. Yes, murmured Lord Henry, settling his button-hole in his coat; and when they grow older they know it.”[ii]
Currently, we find that most people still don’t grasp this piece of wisdom because they keep tripping over “The 25 Year Gap Rule.” And falling into the gap instead of overcoming it isn’t the answer to anything. Therefore, people continually suffer unintended money and financial consequences because Americans today “save 40 years of their life and earn a zero percent rate of return.”[iii]
“The 25 Year Gap Rule” is unpretentiously: “Saving 2 Xs as much while earning 50% less AND keeping more.”
As you can see it is wiser to save more money than to seek a higher and riskier rate of return while saving less. Saving more overtime will prove that you KNOW money can be the answer for everything. And on top of that you will HAVE money to provide some of those answers. Here’s why:
Because of these basic facts it is fundamental to your financial survival to:
Once you’ve come to grips with “The 25 Year Gap Rule” you will be ready to assume greater risk without exposing yourself to financial ruin. Opportunities will knock at your door. And with the wisdom you have acquired by understanding how money supplies an answer for everything, you will be in a position to move on certain opportunities without the risk of starting over from scratch because greater risk can develop into harsh reality.
“Money is the answer for everything.” And understanding this earlier than later will allow you to keep more of the money you make. And of course, as you know, that will prove to be a sounder solution for you and your financial well being.
[i] Ecclesiastes 10:19
[ii] Oscar Wilde, The Picture of Dorian Gray and other Writings
[iii] Robert Shiller, Nobel Prize Laureate and professor at Yale