Our monthly newsletter, Link Newsletter, is full of tips, reminders, and timely advice to help you stay well informed when it comes to your business and personal finances. If you have questions about any of the articles, feel free to email Damon Yudichak at Damon@yudichakcpa.com.
Portrait by Charles Gupton
In This Issue
This month I completed my second marathon the Myrtle Beach Marathon.
As some of you may know I have a slight fascination with NASA’s Apollo program. Even thought I was born after the missions to the moon I still have become inspired by the Apollo Program. I had the opportunity to interview Edgar Mitchell who walked on the moon with the Apollo 14 mission. This month I was delighted with a brief encounter with the second moonwalker.
My good friend Mike attended a conference for ATM (automated teller machines) this month where the keynote speaker was Buzz Aldrin, the second man to walk on the moon. Buzz Aldrin started his speech with the comment, “here I am at conference for ATMs. I never use the things.” The keynote address was about an hour long. About a third of the talk was about the moon flight and the rest of the talk revolved around his life after the moon.
I was captivated as Mike told me about his encounter. That was when he pulled out a copy of Buzz Aldrin’s book Magnificent Desolation. “Damon, I got this for you.” I turned to page one and there I found Buzz Aldrin’s autograph. Thanks Mike.
I continue to be amazed about how much a difference 10 percent can make. The 10 percent principal can make a huge difference in a business finances and a person’s finances.
What is the 10 percent principal? It’s really simple. Put 10 percent of your income into a savings account. I learned about this principal from George Clason’s book The Richest Man in Babylon. In the book, he gives us many lessons about fundamental money management.
Pay yourself first is constantly repeated throughout the book. All of us spend so much of our week working to make a living. Then we take the money we earn and start paying our bills. If the focus is always about making sure everyone else gets paid, then usually there is no money left for me.
To change our fate, a simple change is needed. Before any dime is paid to anyone else, first I pay 10 percent to myself. It’s really simple because I have a separate savings account for my 10 percent. I look at the deposit I make and drop a zero. If I have a $1,000 deposit, I immediately transfer $100 over to my savings account.
I’m not quite sure why this works so well but if I have money in my checking account, I’m apt to spend the money. But the money in my savings account I don’t want to spend. There is something about segregating the money that makes me less inclined to spend the money.
When there are lean times, I can dip into my savings if I need to. It’s just nice to have some money set aside in savings. Try it in your business and personal life. It will make a big difference.
My name is Damon Yudichak and I am a Certified Public Accountant. My father was an Army officer and we moved around a lot. We finally ended up in Fayetteville, NC. I’ve been a resident of Raleigh since 1999 when I moved here to go to North Carolina State University. I am fascinated with the moon and am still amazed that man has walked on the moon. I also am a big standup comedy fan.
The Link Newsletter is prepared by Damon Yudichak. The Link Newsletter carries no official authority, and its contents should not be acted upon without professional advice.
In accordance with IRS Circular 230, this newsletter is not to be considered a “covered opinion” or other written tax advice and should not be relied upon for IRS audit, tax dispute, or any other purpose.