Sunday, December 21, 2014

3 Parts to Jim Rohn's 70%-30% Financial Independence Rule

Why is Jim Rohn's 70%-30% Financial Independence Rule so great? Imagine there was a rule simple to follow which would allow you to live a happy and abundant life in the world of finances.  If I had to pick one rule, that you need to follow, this would be it.

I love this rule because I believe there is a deep meaning behind a very simple rule. The basis of this rule is that 30% of your income should be saved in a particular way.  This 30% is broken down into 3 simple parts:
  • Pay 10% towards charity
  • Pay 10% towards an active income investment
  • Pay 10% towards a passive income investment
Charity is so important.  After your basic needs are met and a few luxuries in life are purchased, if you choose to put others first, you will find great benefit in your life.

An active investment may include a part time business venture.  When you devote time to such a venture, your skill sets will stay current and you will begin to develop qualities which will allow you to maintain your earning potential.

A passive investment may include either real estate or owning stocks.  As Robert Kiyosaki points out in kiyosaki-blog.blogspot.com, the key here is to focus on adding assets to your balance sheet.  Over time, you will see profit despite how individual investments are doing.

You may want to check out more information on Jim Rohn's 70%-30% Financial Independence Rule here: sizusfinlit.blogspot.com.'

This post was reposted from http://finlit.biz/retirement-2/3-parts-to-jim-rohns-70-30-financial-independence-rule/, originally written on January 23rd, 2013.

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