The 70:30 money management rule goes back to the Ancient City of Babylon some 5,000 years ago.
Back then was one of the richest cities in the world.
The 70:30 money management rule basically said that for all money flowing into your household 70% would be allocated to your lifestyle/ living expenses, with the remaining 30% divided up into your 10% pay yourself first account and the balance of 20% put into debt reduction.
The 70:30 Money Management Rule cont
What happens when you have completed that?
With 70% to live on and 10% for paying yourself (which we want you to keep building). Then it’s time to allocate something towards things that inspire you, like Dreams and Special Projects you wish to plan for.
As such, allocate that 20% evenly across dreams and special projects.
For those who want to allocate something towards dreams and special projects regardless of meeting your debt reduction goals, let’s meet 50/50 and allocate at least 10% towards debt detonation and 10% towards your dreams and special projects.
Managing your money has now been made easier with our Cashflow and Debt Solution program that we introduced to assist you in managing your money and building long term wealth. In the program we show you how to make the best choices you can with the cashflow you have available. And most importantly, look at a number of debt solution strategies. These are all fundamental to the 70:30 money management rule.
If you want to know more, contact us with your living, saving and debt allocation inquiry today.
Managing Your Money Made Easy
- Knowing how to make the best choices with the cashflow you have available
- Ensure your debts are structured efficiently to ensure you pay off your debt in the shortest time possible
- Reduce the cost of your borrowings
- Feel in control of your money and more financially confident overall. Also, feel secure about meeting your expenses, and paying off your debts whilst saving time in debt and saving money as you go.
- Saving for other goals and limit your focus on your day to day money
- Start planning for your future.
- Ensure you are debt free by retirement.
- Get good advice on ways to reduce tax.
- Create wealth while focusing on paying off your home loan.
Do You Have A ‘Whole Wealth’ Strategy?
Our primary goal at FMG ‘Whole Wealth’ Strategists, is to empower you to build your own dream life. To recognize all the things that are most important to you. Without formalizing this blueprint, your life and finances are just swaying in the breeze, being blown from one idea and whim to the next. Having a focused and well thought out plan is the start of you new reality.
This is tailored advice unique to your individual situation, to assist you to stick to your strategy but to also make adjustments as change arises in your life. It is also to help you manage your investments, and give up to date advice on your ‘whole’ financial projection.
We are also here to protect you against unnecessary risk, and generally we ‘watch over’ your finances. A good plan will work to bring everything together to make sure all your goals are securely covered.
Remember: Not everyone is the same and we all have different life goals. Someone who’s a PAYG and just started investing will need different support compared to.. a significantly more complex scenario with a $2,000,000 portfolio, but no matter who you are, all dreams and goals are equally important. A surgeon or medical professional compared to a small – medium sized business, and professional investor or developer – people with several trusts will all have unique goals and all need an advanced and different level of support.
We work together and ultimately will be working for YOU on your ultimate goal plan.
If you want to know more, contact us with your ‘Whole Wealth’ enquiry today.
Disclaimer: This article is factual information only. It is not intended to imply any recommendation about any financial product(s) or to constitute tax advice. The information in the article is reliable at the time of distribution, but may not be complete or accurate in the future. For information about a loan that may be suitable for you, call us on 7111 0022.
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