This is my first ever entry on finance. I am very excited because what I am about to share, I have been practicing this method of saving in my life for years now!
Many People wonder where their money is going? Why they are living from check to check? Well, there is no need to wonder anymore because there is an easy way to keep track of your money and also other investments, if you so choose to have such things.
The method I use is the principle of 10, 10, 80. What this means is 10% Tithes (or charity), 10% Saving and 80% which is the rest of your earnings, you will use to live on i.e. rent, food, transportation, leisure, etc.
Another way to look at it is 10,10,10,70- as you probably notice there is an extra 10% added to the equation, this is for dept payment. If you owe credit cards, college loans or any kind of dept there should be a percent of your income that is designated to paying this dept off in a consistent manner.
Depending on your current situation you may end up paying a little more than 10% due to minimum payment requirements or things of that nature. Also... if you live at home with parents or with your partner in which you may not have too many other living expenses, you may want to increase the 10% to another percent to pay off your dept faster, thus reducing the interest you will end up paying in the long run!
Some of you may be thinking "That sounds soo easy, I wonder why I haven't thought of doing that before". I think that it is easy too, especially in theory. However when it comes to actually executing the plan, it takes a lot of dedication, discipline, and goal setting. Below I have a recommended reading which will help many people who read this blog and want to know further.....be sure you are one of those people!
There it is ladies, an easy way to divvy up your income to maximize its use.
Recommended reading:
The richest man in Babylon: By George S. Clason
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