The 10-10-10-70 Principle (Part One)

Blessed

The 10-10-10-70 is a financial life principle for gaining mastery over money. It is a way of processing money through systems put in place to move one from financial dependency through financial independence to financial abundance. It reduces, or practically eliminate risks associated with an emotional disposition to money. The principle processes money through four (4) basic production lines. These are,

Money Cometh

• 10% - Charity (Giving back to God)
• 10% - Savings (Passive Capital)
• 10% - Investment (Active Capital)
• 70% - Discretionary Expenditure (Everyday Expenditure)

Children do what feels good. Adults devise a plan and follow it. (Dave Ramsey) 

Don't tell me where your priorities are. Show me where you spend your money and I'll tell you what they are. (James W. Frick)

The first 10% (Charity/Tithe) is our way of saying THANKS to God, for the grace, life, strength, etc., He has given us. It is He who has given us the health, strength, wisdom, favor, and every other wherewithal that is available to us for making wealth. It is only common that we return to say, THANKS! It is only proper that we recognize where our SOURCE is. It is only wise to recognize He who is our SOURCE.

This production line works the extra benefit of being our declaration, "we are not narrow-minded." It is our way of declaring, "we see the bigger picture of life. It is not just about me. There is more to life than just me." It is our way of giving meaning to our life. If there was only one thing I learned from management school it is this,

"The essence of an organization is not found within the organization, but outside of it." (Peter Drucker)

In the same token, our essence is not found within us, but the blessings we bring about to others. When we give we are saying, "MONEY HAS NO HOLD ON ME." When we give, we declare, "WE ARE IN CONTROL OF MONEY, AND NOT THE OTHER WAY AROUND." It is our way of paying our due/rent for our time here.

A man who cannot give has been hooked. And, guess what, money is not a good master. It is a deadly (draconian) one. You don't want to get under its mastery. When we give here we sow to providence. And, providence does not fail in giving back bounty harvests.

"I've been rich and I've been poor. Rich is better." (Sophie Tucker)

The second 10% (Savings/Passive Capital) is the way by which we appreciate ourselves for the effort, labor, sweat, etc., we have exerted in bringing about the income. And, guess what? You are worth it, every single dime of it. Your savings is the way by which you reward yourself.  It gives you strength as you go to work. It reminds you your labor is not in vain. It puts a bounce in your steps.

"Your savings is the way by which you reward yourself...It puts a bounce in your steps."

It is critical that it is kept in a relatively secure account. It is not money you want to take unnecessary risks with.

There is a DEEP SENSE OF REST that you get when you have MONEY IN THE BANK.

(Trust me, I have seen the two sides. Your steps change, and there is nothing wrong with that. You are not going to attain to your utmost potential and height with your head bent down. You got to stand tall, straighten up, and be sure of yourself. Success breeds confidence, just as much as confidence breeds success. It does not matter which you start with, just do one and you'll get the other.)

"A fool can earn money, but it takes a wise man to save and dispose of it to his own advantage." (Brigham Young)

There are at least two (2) schools of thought on how far you go with this. One puts its focus on saving enough to have at least 6 times monthly expenditure in savings. Another school of thought puts its focus on doing this for your entire active work life. Personally, I subscribe to the second school of thought - a perpetual savings plan.

© 2017 Akin Akinbodunse

Link to Series:

The 10-10-10-70 Principle (Part Two)

Links to Related Articles:

Real Wealth
Money Makes Me Happy

Stay in Control of Your Money

Links to Other Resources:

Think and Grow Rich (Napoleon Hill)
Laws of Prosperity (Rev. Della Reese Lett)

The Richest Man in Babylon (George S. Clason)