We admire people like Warren Buffett that built large fortunes investing and company success stories. NVIDIA (artificial intelligence), Monster Beverage Corp, Apple, Netflix, and Amazon are examples of organizations that achieved explosive growth, transforming from relatively small entities or new startups into global giants. But people often underestimate, or don’t appreciate the effort, focus, and sacrifice needed to foster rapid growth. To illustrate what is needed I ask clients to use the 50/40/10 rule.
Concept:
Invest 50% of current income on business growth or an investment portfolio. This percentage represents the true sacrifice needed for rapid growth.
Use 40% of current income for operating or living expenses. This will focus you on efficiency and creativity.
Invest 10% of current income on charities, a foundation or community projects. This will build your company and investor brand and spheres of influence.
Reflection:
How much are you investing in the growth of your business / goals? Is it enough?
Action Step:
Develop a plan to increase your investment percentage by 5% a year until you reach 50%.
