Biggest Mistake Made

Physician's Money Digest, October31 2004, Volume 11, Issue 20

The single most important investmentdecision you'll ever make may wellbe how much to automatically "payyourself first" into your retirementaccount. Other than buying a home, thisone decision can do more than any otheraction you take in life to determinewhether or not you will become rich.

With this in mind, it shouldn't behard to figure out the single biggestinvestment mistake you can make: notusing your plan and not maxing it out.People who aren't serious aboutbeing rich say the following:

  • "I can't afford to save more than4% of my income."
  • "My spouse is enrolled in theirplan, so I don't need to enroll in mine."
  • "Our plan isn't any good, so it'snot worth using."
  • "My company does not matchretirement contributions, so signing upfor the plan isn't worth it."
  • "Investing in stocks is foolish."
  • "I'll save more later."Serious wealth builders say this:
  • "No matter what, I will paymyself first."
  • "I will pay myself first, allocatingat least 10% of my income and strivingto contribute the maximum amount I'mallowed to my retirement account."
  • "I will make sure my spouse isdoing the same."
  • "I understand that when the stockmarket goes down, it allows me to buystocks at bargain prices—and that's agood thing."
  • "I know the time to save fortomorrow is always today."

Source: The Automatic Millionaire: A Powerful

One-Step Plan to Live and Finish Rich, by David

Bach (Broadway Books; 2004).