Want to be on top of your finances while buying whatever you want? Use these budget categories to become richer, more successful, and more giving.
- Build Wealth Continuously – 10%
- Live Rich Always – 10%
- Save Regularly – 10%
- Self-Improve Constantly – 10%
- Pay Bills Easily – 50 or 55%
- Give Generously – 10% or 5%
The Budget – EXPLAINED
1. Build Wealth Continuously – 10%
Invest it, safely. Otherwise, save it.
This money is never to be spent. Put this money in low-risk investments only. This is the money that makes you more money.
When your money works for you, you don’t have to work.
2. Live Rich Always – 10%
Spend it all!
This money is for you to practice being rich. You can save this up to 3 months max, then you must spend it.
If you want a weekend getaway, an expensive pair of shoes, or a massage, spend it out of this budget category.
3. Save Regularly – 10%
Save for emergencies, expensive vacations, vehicle registration, homeowners association fees, insurance premiums, etc.
4. Self-Improve Constantly – 10%
Buy books, attend seminars, hire a coach, visit a class for the purpose of educating yourself on potential investments and/or becoming perfect.
You are your biggest investment. When you’re at your best, those around you will benefit the most. Use this money to help you reach perfection.
5. Pay Bills Easily – 50% or 55%
Buy your needs: food, shelter, fuel, debt, etc.
Sometimes 50% may not be enough to cover all of your bills. In this case, use 55% and reduce how much you give.
6. Give Generously – 10% or 5%
Give to those in need, to friends & family as gifts, to charities, to churches, etc.
You may feel guilty about only being able to give 5%, but the truth is, you’re giving less by owing others. Give at least 5% so you can benefit from the positive karma and practice being a help to all. Once your debts are paid, give more.
What to do if 55% is not enough for your bills?
Whatever is your highest bill other than mortgage/rent, pay that off first. Then from the money left over, split it into the 6 budget categories.
The Recommend Budgeting Software: YNAB
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