What type of financial independence plan are you implementing?
Financial independence plans are an example of how you can be diligent now to save for your future. For me, I like to be specific with how I allocate my income. Have you ever heard of the 70-10-10-10 plan? I have used it for years and it has helped me tremendously with saving for my future and retirement. Whatever your financial goals are, you need to be strict and follow them meticulously. A good rule of thumb is to spend less than you earn and invest the difference. In the #CJJblog this week I wanted to outline the 70-10-10-10 financial independence plan, but you can shape it into your own version that works for you. Enjoy!
- 70%. Pay yourself and use this portion for the essentials, such as bills, food, and monthly expenses. Consider this piece of your income the base.
- 10%. Give back to a cause or a charity of your choosing. What cause do you support? This has both physical and emotional value.
- 10%. Into your financial independence account. Retirement accounts (401k, 403b, etc.) that you won’t touch. This is your true savings portion. How much do you contribute to a retirement account each paycheck?
- 10%. Invest in personal growth. Books, seminars, audiotapes, and trainings are all great ways to grow your mind. How often do you spend money to invest in yourself?
- Develop your own formula. For me, the 70-10-10-10 split worked and it set me up for a comfortable future. To start, you may have 97% in the base portion, which is absolutely okay. Simply make sure you are planning for your financial future.
Did You Know? Coach Jim Johnson gave a talk on How to get in the top 5% of your profession on Wednesday in Greece, NY to the Greece Chamber of Commerce.
Life Tip #94: Make a study on how you can become financially independent