60/40 RULEZ

Hello Blog Family,

Today let's venture down the road of the 60/40 rule. One of the first steps is to PLAN. Spending 60% of your income on Necessities:Religious/charitable donations, Food & clothing, Mortgage, Insurance (life, auto, mortgage & burial, utilities! The 40% should be allocated into a savings plan: 401k or 403b, Roth IRA, Pension plan or something!!

Excel or Quicken or some easy pieces of software to use in compiling & maintaining a budget. Carry around a small notebook that will allow you to jot down every time you spend money. I also suggest using your Banks ATM opposed to competitors unless they rebate you like Compass Bank.

Another insightful piece of information is that you should take out some FUN MONEY$$$ that will allow you to have a little entertainment. Keep in mind this falls under the 40%. Depending upon your priorities and your objective in life will help dictate how you spend the 40%.

I strongly encourage home ownership because it is the first step to wealth. Buy what you can afford & don't become overindulgent. If your credit is an issue work on it the only way it will get better is if you ACTIVELY do something. Pay your bills on time, limit credit card purchases to no more than 30% of your cards balance, pay cash if you can, and SAVE & pay off BILLS ASAP!!

If you are interested in additional information send me an email & I will forward you a wealth of information.

Let me leave you with a little Quote Power:

The best years of your life are the ones in which you decide your problems are your own. You don't blame them on your mother, the ecology, or the President. You realize that you control your own destiny.
Albert Ellis