Five Point Plan For Your Income
Below is a suggested 5-point plan for your income. Keep in mind that each person has particular circumstances and as such, this plan should be tailored to your specific needs:
- DEBT REDUCTION - A contribution of at least 10% of your gross income systematically reduces your income every month. This one step will have you completely debt free in 3-7 years (including your house and your cars).
- INVESTMENT PLAN - An investment of at least 10% of your gross income systematically increases your wealth every month. (Many people say they don’t even know this money is gone!)
- CHARITABLE GIVING - A contribution of at least 10% of your gross income (tithing) is part of the responsibility and reciprocity associated with creating and being a good steward of wealth (and it’s wonderful for your soul!).
- DEBT AVOIDANCE STRATEGIES - Live by such strategies as only paying cash and maintaining tough restrictions on the use of credit cards.
- SPENDING THE REST - 70% of your income should be enough to give you a wonderful, joy-filled life while still being able to fulfil all your commitments and save for your future.
In Summary: it truly IS just that simple - learn to live on 70% of what you make and you will be debt free in 3-7 years and on your way to becoming rich. What you do with the other 30% will make it so: 10% for your Investment Plan, 10% for your Debt Reduction, and 10% Charitable Giving.
One more suggestion – start NOW!
“A man who both spends and saves money is the happiest man, because he has both enjoyments.” Samuel Johnson
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October 29th, 2008 at 6:41 am
I like this one, I do this in my own life too.