Word count:
"Can two walk together, except they be agreed?"
Book review: Things I wish I'd known before we got married
The second step in developing a financial plan is to agree on a percentage of income that you will save, give away, and spend. There are essentially only three things you can do with money. You can save it, you can give it away, or you can spend it. Deciding the percentage that you will allocate to each of these categories is an important step in making a financial plan.
Through the years, I have encouraged couples to adopt the "10-10-80 plan". Save and invest 10% of your net income. The first purpose of saving is to have emergency funds in case of sickness or loss of job. The second purpose of saving is to pay off any credit card and consumer debts that the two of you may have. The third purpose of savings is in order to make major purchases such as home and automobile. (Retirement saving is normally a part of one's employment package. I strongly encourage couples to participate in whatever retirement plan is offered by their employer.)
Another 10% is to be given away. The purpose of giving is to express gratitude for what has been given to you. The ancient Jewish and Christian traditions encourage of giving of 10% of one's income. The happiest people on the world are not those who have learned the satisfaction of giving help others.
The process of negotiation and agreement before marriage will save you from struggling with this issue after marriage.
To be continued tomorrow by God's grace
#Amos:3:3
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#anniesentcares
#newsongsontheway
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#planyourfinances
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#favouredday
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