# 10, 10 and 80

I’ve been talking with a few people since the start of the year and the talk of finances or lack thereof has been a rather hot topic, enough so that it did get me to thinking about our own situation and that of other’s as well based off of the various conversations.

While talking with several people I learned that many are also following a similar plan as my husband and I are, a 10% 10% and 80%

10% for donating
10% for savings
80% to live on

Might seem hard to think like this but it does work and can help you also get out of debt over time if you stick with it. This formula is something that I’ve tried to follow since my youth, yes I have NOT always been faithful to following it and have paid for not following it. I get back into it and fall away again, which means I need to stick to it which I know is easier to say than do but I am trying to do so.

I know some people say but “how can putting 10% to donating help me!” Well some of the research I’ve read and talked to various people (at church and non-church members) has proven time and time again those who choose to give of their hard earned funds seem to be better at managing their funds then those who let things slid though and don’t pay attention to where funds are going (I know in my own case, this holds true). So it comes down to what you feel is right for you and your family if 10% you feel is too much then 5% or even 2.5% is a possibility you just have to figure out what will be best for you and your family.

This is how I break it down for my family…
10% = 10 cents per 1.00 goes to charity
10% = 10 cents per 1.00 goes into savings
80% = 80 cents per 1.00 is what you live on

So if you make 15k a year 10% which is 1,500 would go towards donating, 10% 1,500.00 to savings and you’d been left to live off of 12k 80%.
This breaks down as followings 125.00 a month to donating, 125.00 a month to savings and about 1,000.00 to live off of each month.
Or if you break it down weekly its as follows 28.84 a week to donating, 28.84 a week to savings and about 250.00 to live off of each week

If you break it down into lower % then this is now it might be possible…

5% = 750.00 a year donating, 750.00 a year for savings and 13,500 to live off of
2.5% = 375.00 a year donating, 375.00 a year for savings and 14,250 to live off of

If you would like a bit more realistic breakdown for a more modest income then here is something for 30k that might be closer to what you make.

10% a year is 3k | 5% a year is 1500 | 2.5% a year is 750.00
10% a month is 250.00 | 5% a month is | 2.5% a month is 62.50
10% a week is 57.69 | 5% a week is | 2.5% a week is 14.42

The bottom line is that you can save and have extra cash on hand if you make the choise, but it starts with you committing and sticking to that commitment for the long term and not just as a short-term means of getting yourself out debt or to save up for that car, home or another item, or while you are only living on a limited income.