The 10-10-80 Principle

Is it possible for you to live off of 80% of what you earn? Think hard, it might be easier than you think. If you can live off of 80%, then why would you do it?

This is known as the 10-10-80 Principle. This ultimate goal of this principle is to encourage you to save more and live on less. The guidelines are to tithe 10%, put 10% in your savings, and then live off of 80% of your total income. The 10-10-80 Principle is a way to help you be more self-sufficient and able to weather those financial storms when they arise because we know they will come. From medical emergencies to car trouble, those unexpected expenses can really hurt us if we are not prepared in advance. It would be nice to not have the feeling of panic accompany the feelings that are already present in emergencies.

1. FIRST, 10% FOR GOD (or charity of your choice)
2. ...AND 10% FOR THE FUTURE
3. AND 80% TO LIVE ON WITH JOY AND CELEBRATION

How does giving 10% away make you richer? The wealth of a man is not only measured by monetary value but also by his happiness. What good is it for you to have millions if you are alone and unhappy? For many people charity gives them a sense of fullness and joy. Charity may do that for you. So whether you tithe or donate to a charity do it with joy and not with expectations of rewards in return.

Have you tried or heard of this plan? 

What are your thoughts?

Sources
“10-10-80: Behaving Toward Believing”
The Debt-Proof Living Plan
Financial Calculator │ Money Chimp
Money Manger │ Mint