Get Rich Slowly presented an interesting article today, that she called An Effective Three Step Budget. However, she is wrong in one major way.
How? Well first take a look at her 3 steps:
1. Destroy all your credit cards.
2. Invest 20% of all that you earn. And never touch it.
3. Live on the remaining 80%, no matter what.
Now take a look at how I would do the same list, which is also (pretty much) how Dave Ramsey, John Commuta and Larry Burkett would teach it:
1. Destroy all your credit cards.
2. Give 10% to Charity off the Top.
3. Invest 20% of all that you earn. And never touch it.
4. Live on the remaining 70%, no matter what.
As we learned in last nights Financial peace Class
"giving moves you to become less selfish and less selfish people have more of a tendency to prosper in relationships and in wealth."
3 comments:
I agree 100%
your ideas make alot of sense to me. that is give 10% to God, dedicate 20% to investment, and use the remaining for living. I like that! thanks, from Sean
I agree with giving some portion of your money to charity. The trick is to make sure the charity you are giving money to is actually using your hard earned money for the said good they are doing. Just like anything though if you seek out a "quality" charity you will probably find one.
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