If you dont have a plan for your money, you’d become broke.
And that’s precisely what happened to me, because I lived on whim and spent on whim, so there’s always not enough and too much month to live on my last couple of bucks, until I learnt this concept of money tactics.
In a nutshell, whenever any money comes into my accounts, they’re immediately segmented and divided into specific use departments, for example
- Investment 10%
- Mortgage / rental 20%
- Savings 10%
- Utilities 10%
- Charity / tithe 10%
- Spend the rest
You can tweak the percentages as you see fit, but do not decrease your investments and savings rate less than 20%. Once I had paid for investments, savings, roof and whatever, I am “allowed” to spend whatever is left, guilt free.
Even the balance is split into weeks, so the balance 40% I can use 10% per week.