The 70/30 plan- habits of financially successful people

As the saying goes, “failing to plan is planning to fail”.

Most people do not have a plan to get ahead financially.

We would go one step further and say it’s the action that produces results, and whilst having a great plan is a necessary component to financial success, you will never get where you want to go without taking deliberate and meaningful action.

So, what’s your plan? Are you on track to achieve your financial goals? When was the last time you reviewed your goals and the progress towards achieving them?

Are you taking deliberate and meaningful action to achieve those goals?

If you are like most people, you purchased a home with a home loan term of 30 years. You make the minimum monthly repayment and signed up for a big financial commitment for the next 30 years and will end up paying close to double (if not more) than what you borrowed in interest to your lender.

If you would like to write a different story for your life and have a different outcome to that described above, consider the 70/30 plan made famous by Jim Rohn. This is where you set aside 10% of your paycheck for saving, 10% for investing and 10% for giving.

If you follow this strategy, you are taking deliberate and meaningful action towards improving your financial health.

Saving- 10% could go into a home loan redraw facility, paying down your principal (the money you borrowed) faster.

Investing- 10% could go towards investments like shares, managed funds, ETF’s or other kinds of investments.

Giving- 10% could go towards a donation at church, to charities, or to the homeless.

The 70/30 plan is just one of many plans/strategies that you can implement to get ahead financially.

This one may or may not resonate with you, but its hard to argue that by taking deliberate and meaningful actions towards your goals and having the discipline to complete the actions on a regular basis, that your chances of achieving your goals and improving your financial health will significantly increase.

It’s a similar concept to living a healthy lifestyle. Do you wake up early each morning and complete a gym or yoga session? Do you make the time to go for a lunch time walk or run? Do you eat fast food everyday or chose to eat healthy during the week and indulge on the weekends?

Life is about choices.

You can continue to travel the same path which will get you somewhere or you can travel a new path to take you to a different place.

Have a fantastic week!

The team at Build & Protect.