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

What happens when you have completed that you ask?

Well, with 70% to live on and 10% for paying yourself (which we want you to keep building). Then we need 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, lets 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 you earlier this year. 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 solutions. These all apply to the 70:30 money management rule.


If you want to know more, contact us with your living, saving and debt allocation inquiry today.