The 10-10-80 Rule

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Name: Steve Repak

Website: steverepak.com

Entry Category: Saving Money and Frugal Living

#MoneyMinute Voting is closed

Steve Repak: My name is Steve Repak. I’m a certified financial planner, a financial literacy speaker, and the author of Dollars & Uncommon Sense: Basic Training for your Money.

We’re gonna talk about the 10-10-80 rule. It doesn’t matter if you make two thousand dollars a month or twenty thousand dollars a month, you can apply it to your finances.

First, I want you to give away the first ten percent. I know it doesn’t make sense but I believe if you give, you’ll receive, and the people that are most happy and satisfied with their lives are the ones that give the most.

Next, I want you to save ten percent. Nobody loves you more then you so pay yourself first. Consider taking half of it and putting it into your short-term savings and the other half toward your retirement.

Next, you’re gonna live on the rest.

You might be asking, “Can I give more than ten percent?” Sure, you can give more than ten percent.

“Can you save more than ten percent?” Sure, you can save more than ten percent!

“Can I spend more?” No, I don’t want you to spend more than eighty percent of what you make.

 

About the Author

GOBankingRates Staff

These articles are written by the in-house GOBankingRates team.

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