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70,10,10,10 formula

70,10,10,10 formula

The poor spend what they have and invest what’s left.  The rich invest what they have and spend what’s left.

It is vitally important for kids to have a financial plan for their future to ensure they are comfortable.

Jim Rohn suggests something called the 70,10,10,10 formula. This formula is about never spending more than 70% of one’s income. 10% is for active capital (to invest in one’s own business), 10% is for passive capital (banks, stocks, shares…), and then 10% is for charity.

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