The 10-10-10-70 Formula To Financial Freedom (The Pinoy Millionaire Game Plan)
The 10, 10, 10 and 70 Formula
As I searched for a way to recover from my financial disaster, I came across Jim Rohn’s suggestion of 70, 10, 10, and 10 formula. The formula was also mentioned in the book The Richest Man in Babylon by George Classon. I simply rearranged it to 10, 10, 10 and 70 formula to suit the principles I follow. I will now call it The Pinoy Millionaire Game Plan.
Here’s how it goes:
THE FIRST TEN – FOR CHURCH AND CHARITY
The first 10 means that I will set aside 10% of all my earnings for church and charity. This portion is set aside to be used for my offerings, to give back from the blessings I received. It would be easier to give with a cheerful heart if I will set aside in advance this amount. Once I receive my salary, regardless of the amount, this portion will be set aside. Some part of this allocation, I use for charity to share to the less fortunate.
THE SECOND TEN: PASSIVE CAPITAL
The other 10 means that I will set aside 10% of all my earnings for building a source of passive income like stocks and mutual funds.
THE THIRD TEN: ACTIVE CAPITAL
The next 10 means that I will set aside 10% will be for active capital, for education for specific knowledge that will improve myself to start and run a part time business. I will use part of this to build my emergency fund and to pay back my debts at the same time. Emergency Fund should be at least three to six months of expenses.
THE FOURTH PART (70): LIFESTYLE:
The remaining 70% of all I earn, I will split into 60% for lifestyle and 10% to save something to spend.
The 60% portion is for paying the rent for a warm shelter, buy clothes to wear, buy food to eat, transportation, communications, insurance, for pleasure and enjoyment, and other things for our daily living. My family must live upon this portion. We should never use more than this portion. The 10% will be save for future spending with big ticket items like vacation, buying a car, attending seminars, etc.
I will make this a habit, every time I receive my salary, I will separate at once the amount for the 10, 10 and 10. Whatever left will be the amount we can only spend. This is like paying myself first before paying others. Following this habit, I will never run out of money. I will be able to pay off all my debts and build a good amount of surplus funds for myself and my family.
INCREASE YOUR INCOME
Now that you are able to live with that allocation, you have to find ways to increase your income doing part time business. For me, I do online marketing business during my free time.
However small, it’s an extra income that I can put to work. And what if I’d be able to earn P1M a year from that extra source of income? That means, I can attain my financial freedom a lot faster using many sources of income.
Making your money to work for your financial freedom and building a passive business require a good strategy. You must have a game plan to follow to win the money game. I’m sharing the game plan I’m using. Click the photo to submit your request to receive your FREE copy.
Here’s to your success!