Is There A Simple Plan For Financial Success?

Is There A Simple Plan For Financial Success?

Many people ask if there is a simple plan for financial success. Everyone wants to succeed financially, but everyone’s situation is different. While there is no magic bullet, there are some simple things each person can do.

Generically, there are 2 ways to enhance your financial situation.

  1. Increase your income. Sometimes the challenge is you are simply not making enough money. I must caution you with this. Income is not always the answer. The truth is, most of us can spend as much money as we can make. Making more money might merely enable you to do more stuff. In considering whether you are making enough money, start by examining the cost of living in your area. In areas with low costs of living, you can do more with less. Then, consider the average salary for your field. Are you in line with the average? There are times people need to make more money, even if on a temporary bases (i.e. to pay off debt). Consider a part-time job or starting a business on the side.
  2. Decrease your expenses. This is always the first place to start. Are there ways you can reduce your monthly expenses? Consider things like better management of your home thermostat, cutting your grocery bill, eating out less often, driving in ways that minimize fuel consumption, driving a less expensive car, shopping less, etc.

The 10/10/80 Principle

I encourage people to consider living by the 10/10/80 Principle.

  • 10% of all you make belongs to God. God is the source of all blessings in your life. Without Him, we would be nothing. He is the very source of our lives. He sustains us. He blesses us. He loves us. He wants what is best for us. Generosity is not just a Christian practice, it releases a Spiritual Law in your life – The Law of Reciprocity. Everything returns to its source. For instance, all water from the ocean ultimately returns to the ocean. Whatever you give out, is returned to you. Give love, and love will return to you. Give positive thoughts, and positivity comes back to you. Generosity brings a great sense of fulfillment in your life. Always put God first. No exceptions.
  • 10% of all you make is yours to keep. After you give generously, the next thing to do is pay yourself. So many people work so hard, only to give all their money away. This is not wise. You work hard for your money. At some point, you need to make your money work hard for you. You cannot do this if you never keep any of your money. This money should be set aside each time you get paid and placed somewhere that you don’t have easy access to. This is not money for a T.V. or vacation. This is money for your future. Do not spend it on anything except your future or an extreme emergency.
  • 80% of all you make is for everything else. Once you’ve given to both God and yourself, then it’s time to pay for living expenses and debt. This practice forces you to live beneath your privilege. Unfortunately, many people live beyond their means. When you practice living off less than you are able to, you begin to live a much more successful financial life. It’s hard to start, but easy to maintain.

By doing these things, you will be well on the way to greater financial success. There are, of course, many other things you can do to further enhance your financial life. If you’d like more help, send me an email.