Andrew Priestley is one of the guest speakers on my Women’s Leadership Success programme taking place on 4th March, 2013
Below he shares his thoughts on why we should all be living by the 70/20/10 rule
Most Brits spend 130% of their take-home weekly pay. This means that they are funding the additional 30% on credit cards, loans and store charge cards. This quickly becomes a long term cash-debt problem.
And sadly, it is self-inflicted.
There are several key reasons why debt occurs but the biggest causes are spending more than you earn i.e., living beyond your means; and spending more than you need to. The one that bugs me the most is buying stuff you don’t really need. For example, bright, shiny, new stuff.
I was recently in an electronics store and I overheard a young married couple arguing over whether or not to buy a gaming console and 3D TV. They were weighing up a 15 month non-payment loan.
But it can be really benign stuff. Recent food shopping research shows that people spend nearly 40% more than they need to at the weekly grocery shopping expedition … if they don’t use a shipping list.
Fortunately, debt is something that you can cycle out of. In my experience you can be well on the way to debt-free with 90 days but it takes commitment and energy.
The starting point is to learn to live on 70% of your take home pay. 10% you should save. And 20% you should use to reduce debts.
Two university students followed the 70/20/10 rule for 3 months and booth have surplus cash for the first time ever!
One client reduced her debt and created a nice little nest egg of cash … and then ‘borrowed’ it to her brother who is still to repay her.
In his talk at the Women’s Leadership Success programme we will explore the 70/20/10 rule and show you ten money managing skills that will get you out of debt and cashed up.