As you progress along the path, you become keenly aware of how much time and effort is devoted to generating sufficient income to meet the needs of you and your family.

This challenge of your financial survival is an important test of your knowledge, skill, determination and self discipline.

If you do not meet this challenge and master it, you put a severe limitation on your ability to achieve your goals and realize your purpose. In fact, as long as you are living paycheck to paycheck, or are dependent on someone or something for assistance, you will find it difficult to give the time, and focus your attention with enough intensity to get desired results. So, it is crucial that you meet and overcome this financial challenge, and thereby solve the riddle of survival.

To solve the riddle of survival means that you have achieved a level of financial independence in which the fruits of your labors are sufficient that you can continue to live indefinitely at a level which is pleasing to you, without any further effort required.

For example, suppose you conclude that $36,000 per year would be sufficient to meet all of your financial needs. Your objective is to devise a plan to generate sufficient assets/wealth to produce $36,000 per year income, without touching the principal.

There are basically three ways to create wealth:

1. Wages and salaries.
2. Income from a business.
3. Income from investments.

Lets take a very common scenario. You're 40 years old. You don't own a business. You have no investments. But, you have a good job paying you $36,000 per year. What can you do, and how long will it take for you to accumulate enough wealth or assets to guarantee yourself $36,000 per year income for life. Let's assume that you decide to create this wealth by taking advantage of the power of compound interest over time. And further assume that you chose to invest monthly in a mutual fund.

First, determine how much wealth/assets in mutual funds you would have to accumulate to generate $36,000 per year income. Assuming an annual return of 12%, which is fairly conservative, it would take:

$36,000/12% = $36,000/.12 = $300,000

A $300,000 principal investment in a mutual fund at 12% annual return would give you a $36,000 income per year for life.

Using the standard compound interest tables available at most banks, mutual funds or libraries, you can see how much you will have in 10 to 30 years at various monthly investment amounts.

Compound Interest Projection Table

Invest Accumulated Dollar Amount

Monthly        	10 Yrs.         20 Yrs.         30 Yrs.


$100     		$23,004        $98,924      $349,496

$200     		$46,008      $197,848      $698,992

$300     		$69,012      $296,772   $1,048,488

Always pay yourself first. If you take 10% of your annual income and invest it in monthly installments, you would be investing:

10% of $36,000 = $3,600 per year
$3,600/12 months = $300 per month.

From the compound interest table you will see that if you invest $300 per month in a mutual fund earning 12% per year, you would have $296,772 in 20 years. In other words, you would have mastered the riddle of survival at age 60. If you get started sooner, or increase your monthly investment, you'll achieve this independence much sooner. Suppose you started this program at age 30, you would be there at age 50.

What this example shows is that you don't need a big inheritance, special talents or contacts. You can solve the riddle of survival yourself over time with self-discipline.

Another approach to solving the riddle of survival is to establish or purchase a business. Dollar-for-dollar, the most accessible and cost effective business you can acquire is probably a network marketing business.

© 2004 LifeSkill Institute, Inc.

Based on The Twelve Universal Laws of Success, Second Edition, Expanded, ISBN 0-9748362-1-4 a new book by Herbert Harris, available at Amazon.com, barnesandnoble.com, or through the LifeSkill Institute, Inc. Call (800) 570-4009 to order books. Get your FREE copy of "Twelve Affirmations to Live By" poster by E-mail to: lifeskill@earthlink.net

Brother Herbert Harris will be keeping the Black community updated on thoughts for success and how we can succeed in our lives. Visit regularly for new information that could help you overcome and make the best of your everyday experiences.

To subscribe to Harris' column join the Afromerica email list to receive new information as it is updated. Or E-mail H Harris at: lifeskill@earthlink.net

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