The Simplest Way of Saving Money

 10% Rule

As the Bible says, “Give to God what belongs to God” (Mark 12:17). I always believe in the law of tithing. The moment you receive your salary, set aside 10% of your monthly income and give it cheerfully to your church to fund all God’s work and to help the less fortunate people.

If you have a bank account with online banking, you can automatically transfer 10% of your monthly income for your tithe. You can inquire your bank of choice if they have this feature to help you save your money.

You will be amazed on the results if you consistently do tithing. Try it!

20% Rule

You always plan for the big expenses in your life—rental payments, water and electricity bills, daily allowances, shopping expenses, out-of-town trips and most importantly, credit card bills. And disregard the biggest expense which is your retirement. Some might say, “I am too young to prepare for my retirement.”

But do you know when is the best time to plan for retirement? The best time is now—start as early as you can. After you set aside 10% of your income for your monthly tithe, allocate 20% for your retirement fund and long-term goals.

But don’t put your retirement fund in the bank only for your emergency savings. Invest it where bank invests your money. Invest it in mutual funds or stocks, you can visit for a complete listing of mutual funds in the country or just contact me.

Because you don’t want to grow old and poor. You want to grow old, rich, and very generous. Right?

70% Rule

After subtracting your Tithes and Investments (retirement fund and long-term goals), spend whatever is left. By doing this, you are in control of your expenses. Examine your current lifestyle. Have you been spending more than what you are earning? If you don’t have money right now to buy a thing that you like, then don’t buy it.

Don’t spend your money on things that you don’t really need. Create a list of things that you need in your everyday life. This will save you from becoming an “impulsive buyer” whenever there is a mall sale and from using your credit cards.

But if you would like to have some activities for yourself or loved ones like planning for out-of-town trips, travel and shopping abroad, movie/spa and the like, you can create “Financial Jars/Envelopes” for each activity you like to plan which I will discuss in my succeeding posts.

Spend your money on what truly matters.