70-20-10 Rules To Wealth…What is the 70-20-10 Rule?
70-20-10 Rules To Wealth
What is the 70-20-10 Rule?
To answer this question it’s pretty straight-forward, which means setting a budget, living on that budget, by also saving.
More like this 70 percent you live on and food, rent, clothing, etc.
20 Percent is what you use to pay down any debt’s you may have, by also setting up a debt repayment plan (We will get into this a little later on), then by monitoring your debt and not add any further debt, but setting a time frame and a plan to follow you will surely be able to watch your debt load decrease.
But by watching your Wealth increase.
Pay Yourself First which is where the 10 percent comes in handy, this is what you should have a savings account for and watch as it grows and grows.
But your savings should be the type of savings account with a good interest rate, where by it will compound over time, more like the Return on Investment should, bring you one step closer to your, wealth building goal.
Now to say that this is all there is to it because no it’s not, not by a long shot.
The real point is having something where you have a system and manage your income and your expenses.
But also for 10% that you will use later down the line you will want to have this work for you, which means you will need to invest a portion of this in other investments which will bring in more value to add to your wealth building empire.
We will discuss this further some more articles in the future and we will go through all of this and also recommend some helpful resources where you can learn more on your personal finances or money management.
Please if you feel that this was helpful in some way, let us know by commenting about it and letting us know.
By Julio R. Mattos
Getting Up and Taking Action!
http://www.MrJulio.com