By following the 10/10/10/55 rule,you can create a well-rounded financial plan that covers your needs,prepares you for the future ,and lets you enjoy the present.Implementing
this strategy can help you manage your money more effective ,reduce financial stress ,and ultimately live like the top 1%.So take control of your finance today and start applying
the 10/10/10/55 rule to acheive financial freedom and peace of mind.
10%:Financial Freedom Account
Financial freedom refers to the first and most important of your life.The 10% of allocated financial Freedom Accuont.This portion of your income should cover essential expenses such as Financial Freedom Account
Create a financial freedom account and deposit something into it daily and however small.The idea is to keep financial management top of mind and a daily commitment
made towards your financial freedom. Such as stock market,Mutual Funds,Real Estate.For example
if you earn 1 lakh
you can allocated10,000 /-(Financial Freedom Account)
or
you can allocated 10,000/-(Long Term Savings for Spending Account)
or 10,000/- (Education Account)
and
55,000/-(Necessities Account)
10%:Long Term Saving and Spending Account
The 10 % of allocated saving and investing of your income such as emergency fund,future expenses(sinking fund),retirement fund),education fund,marrige fun,short term fund or passive income.within this category ,its wise to set aside 3-5% as an emergency fund .This fund facts as a financial safety
net ,protecting you from unexpected expenses like medical emergencies or urgent home repair.The remaining portion of this 10% should be invest in reliable option
such as index funds,which offer a balanced and diversified approach to growing your wealth over time.smart investing can help you build a secure financial future
and achive your long term goals.Such as big purchases,vacations,rainy day fund.For example
you can allocated10,000 /-(Financial Freedom Account)
or
you can allocated 10,000/-(Long Term Savings for Spending Account)
or 10,000/- (Education Account)
and
55,000/-(Necessities Account)
10%:Education
The 10% allocated to Education Account.This portion of your income should cover essential expenses such as books,courses,coaching,mentoring and seminars.The More knowledge and skills
you aquire ,the greater your earning capacity.And the more you earn ,the more you need to learn.For example
you can allocated10,000 /-(Financial Freedom Account)
or
you can allocated 10,000/-(Long Term Savings for Spending Account)
or 10,000/- (Education Account)
and
55,000/-(Necessities Account)
55%:Necessities Account
The 55% allocated to Necessity Account .This portion of your income should cover essential expenses such as rent or housing,food,trasportation,insurance,groceries,hea
lthcare,utilities or medical.By keeping track of these necessary costs,you can ensure that your basic needs are met without overspending.Budgeting for these
essentials helps you maintain a stable financial foundation.For example
you can allocated10,000 /-(Financial Freedom Account)
or
you can allocated 10,000/-(Long Term Savings for Spending Account)
or 10,000/- (Education Account)
and
55,000/-(Necessities Account)
FAQs About 10/10/10/55 Budget Rule ?
What is the 50/20/20/10 budget rule?
50% for living expenses (NEEDS). This includes things like your housing, transportation, groceries, utilities, etc. 20% for to personal expenses (WANTS). This includes things like entertainment, subscription services, coffee runs, dining out, etc. 20% for saving and/or paying down debt (SAVINGS).
What is the 40-40-20 budget rule?
Cardone says that from your gross income, 40% should be set aside for taxes, 40% should be saved, and you should live off of the remaining 20%.
Conclusion
the 10/10/10/55 rule,you can create a well-rounded financial plan that covers your needs,prepares you for the future ,and lets you enjoy the present.Implementing
this strategy can help you manage your money more effective ,reduce financial stress.