If you fail to plan, you are planning to fail!
Are you sick and tired of struggling to make ends meet and feeling like you'll never achieve financial freedom? If so, the 70-10-10-10 budgeting framework could be just what you need. It is a simple and effective strategy which has helped many people improve their financial situation and reach their financial goals. In this blog post, we'll discuss the 70-10-10-10 budgeting method and how you can use it to maximise your money.
What is it?
But what is budgeting, you may ask? It's the process of creating a plan to manage your income and expenses. The idea is to keep track of how much money is coming in and how much is going out so that you can make informed decisions about how best to allocate your money. The 70-10-10-10 framework is something of an anchor to guide and anchor you. It's designed for the optimal distribution of your income that ensures every pound you earn is working hard for you. It's based on the optimal distribution of your income, making sure that every pound you earn works hard for you.
The most important aspect of this method is to ensure that you 'pay yourself first'. This is the concept;
* Don't spend more than 70% of your income on living expenses - this includes things like housing, food, transport, insurance and utility bills.
* Optimise your money by setting aside 10% of your income for investments to buy assets such as shares or property, to grow wealth over time.
* Saving 10% - putting money aside for short-term or long-term goals, such as an emergency fund or a big purchase.
* 10% for generosity, tithing and/or altruistic activities.
Here is a free 70-10-10-10 calculator to help you illustrate this with your income.
By dividing your income into these four categories, you can prioritise spending on essentials, saving for the future, building wealth and giving back to others. Whether you're a child or an adult, this budgeting method can help you take control of your finances and achieve your financial goals.
Yes you can do it.
If you're reading this and thinking that this principle sounds great, but your living expenses are way above the 70 part of this principle and you can't see yourself achieving the 10-10-10 part, don't worry.
The key is to start where you are and work towards your goal. It may be that for the next 6 months, or even longer, you will only be able to achieve 5-5-5-85, and that's OK. This is a good place to start. But as you work towards the principle, you will gradually start to make smarter lifestyle choices, from reducing your grocery bill, eating out less, resisting the urge to buy clothes you don't need, reducing your energy bills - and much more.
The most important step is to get started. And once you do, the 70-10-10-10 principle will become your lifestyle. By the time you're done, you'll build a solid emergency fund, start a long-term savings plan, put money aside for charity, and manage your income and spending better than ever.
Take the first step to financial success with the 70-10-10-10 budgeting principle by joining the #GrowYourMoney Challenge. We'll give you the support, resources and accountability you need to achieve your #goals. Sign up now, it's free. Let's get you started!