Tip o’ the Morning to Ya – Savings vs. Investing

Rich Habits Word of the Day

Endow – Save, contribute.  Tom viewed his savings an endowment towards financial independence.

Rich Habits Fact of the Day

Name: Chris and Amy Stacey, 37
Current portfolio: $550,000
Income: $150,000
Annual savings: $35,000
Time to $1 million: 5 years

What they’re doing: “A million dollars is not the goal,” says Chris Stacey. “For me it’s $2.5 million.” The Honda salesman figures that’s what he and his wife, Amy, a part-time dental hygienist, will need for a comfortable, worry-free retirement.

Chris started saving diligently the moment he sold his first Accord 18 years ago, even going so far as to fund a Roth IRA for Amy before they were married. Over the past five years the couple, parents of a 16-month-old daughter, have been socking away an average of $35,000 a year — or about 23% of their gross income. That savings level is even more impressive given the steep drop in car sales during the Great Recession. (Chris works 100% on commission.)

How do they manage it? By living below the lifestyle they could afford during Chris’s good years. That’s illustrated by the fact that, while Chris gets a loaner car through work, Amy drives a 2004 Pilot with 71,000 miles.

Their philosophy, says Chris: “The more we can save now, the better off we’ll be in 25 years.”

Rich Habits Lesson of the Day

Wealthy, successful people consider savings and investment two opposite things. They believe you should never lose money on your savings, whereas, investments represent a portion of your savings you are willing to put at risk. When you invest, you accept the risk that you could lose some or all of that investment. How much you take out of your savings and invest depends on your risk tolerance. Conservative wealthy people do not put any of their savings at risk. Moderate wealthy people put 25-50%% of their savings at risk. Aggressive wealthy people put 50% or more of their savings at risk.

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Thomas C. Corley About Thomas C. Corley

Tom Corley understands the difference between being rich and poor: at age nine, his family went from being multi-millionaires to broke in just one night, due to a catastrophic fire that destroyed his Dad's thriving business. For fourteen years they struggled with poverty. There were eleven in Tom's family, and they lived in constant fear of losing their home.

Driven by the desire to unlock the secrets to success and failure, Tom spent five years studying the daily activities of 233 rich people and 128 poor people. He discovered there was an immense difference between the habits of the rich and the poor. During his research he identified over 300 daily activities that separated the “haves” from the “have nots.” Tom decided to write a book to share what he learned. That book, Rich Habits: The Daily Success Habits of Wealthy Individuals (1st Edition), went on to become an Amazon Bestseller in the United States forty times over a three year period. To give you some perspective, in order to be a true Amazon Bestseller in the United States, where you actually receive a specific Bestseller designation from Amazon, you need to be in the top 100 of all books sold by Amazon in the United States in a given day. Rich Habits did that for nearly thirty straight days, rising as high as #7, eclipsing such Bestselling authors such as Stephen Covey, Robert Kiyosaki and J.K. Rowlings. Imagine that - an unknown, first-time, self-published author selling more books than J.K. Rowlings!

Tom now travels the world, sharing his Rich Habits and motivating audiences at industry conferences, corporate events, universities, multi-level marketing group events, and global sales organizations’ presentations and finance conferences. He has even spoken on the same stage with famous entrepreneurs and personal development experts, such as Sir Richard Branson, Robin Sharma, Dr. Daniel Amen, and many others.

Tom has shared his insights on various national and international network, cable, and Internet television programs such as CBS Evening News, NBC News, Yahoo Financially Fit, Money.com, India TV, News.com Australia, and a host of others. He has been interviewed on many prestigious nationally syndicated radio shows, including the Dave Ramsey Show, Marketplace Money, and WABC.

Tom has been featured in numerous print magazines—such as Money magazine, Inc. Magazine, SUCCESS Magazine, Entrepreneur magazine, Fast Company magazine, More magazine, Epoca Magazine (Brazil’s largest weekly) and Kiplinger’s Personal Finance magazine—and various online publications, including USA Today, CNN, MSN Money, SUCCESS.com, Inc.com, and the Huffington Post. Tom is a frequent contributor to Business Insider, Credit.com, Bankrate.com and a few other media outlets.

National publicity has garnered international media attention for Tom and his Rich Habits research spanning 23 countries. Broadcast media, online publications, and television throughout Asia, the South Pacific, Europe, the United Kingdom, and Central and South America have shared his powerful message.

In an effort to help parents, grandparents, teachers and adults become success mentors to the younger generation, Tom released his second book, Rich Kids: How to Raise Our Children to be Happy and Successful in Life in 2014. This book was the self-help category winner of the 2015 New York Book Festival and Runner-up in the prestigious 2015 Writer’s Digest Self-Published Book Awards Contest. In 2016 Tom released his third book, Change Your Habits, Change Your Life. This book provides the latest science on habit change as well as more of Tom's unique research on the specific habits that helped transform 177 ordinary individuals into self-made millionaires.

Besides being an author, Tom is also a CPA, CFP, and hold a master’s degree in taxation. As president of Cerefice and Company, CPAs, Tom heads one of the premier financial firms in New Jersey.
Phone Number: 732-382-3800 Ext. 103.
Email Tom
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