{"id":651,"date":"2017-11-29T14:08:51","date_gmt":"2017-11-29T14:08:51","guid":{"rendered":"http:\/\/budget.firmecreative.com\/?p=651"},"modified":"2018-01-30T00:17:50","modified_gmt":"2018-01-30T00:17:50","slug":"savings-the-10-rule-re-invented","status":"publish","type":"post","link":"https:\/\/budget-express.com\/en\/savings-the-10-rule-re-invented\/","title":{"rendered":"Savings: The 10% Rule, Re-invented!"},"content":{"rendered":"
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It\u2019s been a long time that I\u2019ve been reflecting\u2026 alas, I\u2019m writing my first post to share my findings and discoveries on personal finance. I will certainly have the occasion to write regularly on the subject.<\/span><\/figcaption><\/figure>\n

For this first time round, I want to harken back to something extremely important: savings. There\u2019s a rule in personal financial planning that says we should systematically save about 10% of our net income right away, yes, yes, you\u2019ve read correctly, now, today!).\u00a0<\/p>\n

Whether it be for retirement or to constitute one\u2019s emergency fund for 3 months, don\u2019t wait! In fact, the longer we wait before saving, the greater the risk you\u2019ll have of making big sacrifices later on, which will surely entail a reduced lifestyle.<\/p>\n

I recently read an extraordinary book, one of the rare ones on personal finances in French, written by David Chilton, one of the \u201cdragons\u201d on the show Dragon\u2019s Den in Canada. It\u2019s called \u201cThe Return of the Wealthy Barber\u201d.<\/p>\n

The author struck my imagination by reinventing The 10% Rule. Considering that few amongst us actually save sufficiently, but we\u2019ve rather mastered the art of spending, he suggests an original way to attain our goal: save only 4% of our salary, but cut 6.25% of our spending. Admittedly, this seems a lot more reasonable! We just hadn\u2019t thought of it before\u2026<\/p>\n

What\u2019s most surprising is that this approach (that he explains in detail) increases the rate of savings by 150%! Pretty awesome, wouldn\u2019t you agree? A new way of tackling it all; perfect for those who are more inclined to reduce their spending than saving their money!<\/p>\n

However, life will no longer be easy: cutting 6.25% of your spending demands discipline and restraint. To put chance in your favor, limit your access to credit: destroy your excess credit cards or those from big chain stores and be conscious of your spending by identifying where your money\u2019s going. You\u2019ll be surprised to notice at what point the additional spending on one thing to another can quickly add up to unexpected amounts.<\/p>\n

As for you, where will you cut your 6.25%?<\/p>\n