The 10-10-70-10 Rule


 

Looking to organize your money?  This money recipe will show you how to organize your money once you earn it. 

  1. Calculate how much money you're anticipating at the end of the month. The total
  2. Put that total amount into 4 categories (10% Giving back, 10% Paying yourself,
    70% Bills, 10% Investing).
  3. Ideally, put away 10% for giving back. This could be Church, Charity, etc. 
  4. Then, pay YOURSELF 10%. This must be at least 10% and more if you can.  Source (Richest man in Babylon).
  5. 70% goes to bills. Everything you need for survival.  (car, gas, food, rent, clothes, medical, etc.)
  6. Take the last 10% and put it towards investing. Research diverse types of investments that make money grow.  For example, a business or stock market.      

These percentages aren't going to be the same for everyone.  Maybe your expenses are low and you're able to save more and safely invest the difference. 

To summarize.  Ideally 10% goes to giving back, pay yourself 10%, 70% goes to expenses and the 10% difference goes to investing aka growing your money. 

Get a in depth idea of this concept check out "The Richest Man in Babylon" Now