A blueprint is an engineer’s printed layout or plan of the project he is about to develop. The blueprint serves as the guide for the construction and completion of the project. This building should be finished as precised as of that in the blueprint.
There is a saying that there are so many roads that will lead you to your destination. That is right! But before you proceed to where you would like to go, you have to choose which way to take. The same is true for my quest to my financial freedom.
First, I have to make a choice which way to take, then program it on my GPS, take the route and stay on it until I reached my destination. As I decided to take the 10, 10, 10 and 70 formula for my financial freedom, I am reminding myself again to keep on track with that blueprint. Here’s how it is:
THE FIRST TEN FOR GIVING BACK
Giving back the blessings I received is a way to show my gratitude. God wants a cheerful giver and the best way to make me a happy giver is to give this part of allocation the utmost priority. This will become a habit, a principle that every time I receive the fruit of my labor, 10 percent of it will be set aside for giving back. It’s good to do this right now, especially that the amount is still small. What if time comes and you will be earning a million? Giving a hundred thousand wouldn’t be easy if you don’t have the principle. When it became a habit embedded deeply within your lifestyle, it would be easier to give with joy, regardless of the amount.
THE SECOND TEN SHOULD BE FOR MY EMERGENCY FUNDS
The other 10 percent will be set aside for building my emergency fund. It is my goal to reach at least an equivalent of three months of salary. That amount should be the minimum; a greater amount would be better. Building an emergency fund is of great importance. Insurance coverage should also be from this allotment. Nobody knows what will come to one’s life. It’s better to be prepared for something inevitable. Storm of life will come, we just don’t know when. This budget should not be spent to any things other than what if is allotted for.
Once I have the desired amount for my emergency fund set aside, I can allocate this part for investments like stocks, mutual funds and trust funds to earn passive income.
THE THIRD TEN SHOULD BE FOR PAYING MY DEBTS
The other 10 percent will be set aside for paying back my debts. It may take a while to recover from my financial disaster, but with constant payment, it will be over in two years.
Once I have paid back all debts, I can then allocate this part for my active capital. This active capital is an investment for a personal business to make that money to work and earn more.
LIVING WITH YOUR LIFESTYLE
Being in a financial disaster does not mean you will live your life in misery! Life is to be enjoyed. We all have one chance to make the best of it, isn’t it? So let’s make it worthwhile. Leave the worries behind and let the 30% do the work. Now, let’s take a lookt at the 70%!
The remaining 70% of all I earn, I will use to provide support for my family. This portion will be for the payment of the rent for a warm shelter, clothes to wear, food to eat, for pleasure and enjoyment, and other things. That would be decent. I must live upon this portion and never spend more. I should not draw any amount from other allocations and say that I will pay back next month. Note that if you will take away even a bit of a portion from the other allocations, you will always be short of money every month. The cycle will never stop. So to get out of that rat race, stick to the plan and make it a habit to use only 70% for your lifestyle.
If you are right now looking for a way to a better financial future, this blueprint might be of help to you as well. Every time you get hold of your salary, separate at once the amount for 10, 10 and 10. You are paying yourself first before others. Whatever left after taking out the 30% that will be the amount you can spend for your lifestyle. Following this blueprint, you will never run out of money. Seeing the results of your efforts even if it’s still a very small amount, you will be motivated to move forward.
Once you are able to build your wealth and gain your financial freedom, you can solve other people’s problem with style.
Check out my book published on Amazon, it will only cost you a price of a cup of coffee: On The Way To Financial Recovery. And of course, you have to invest thirty minutes of your time to read it. Who knows, this will be the best book you will read this weekend.
Here’s to your success!