THE 70-10-10-10 RULE

There are many strategies you can use to be financially independent. One of the simplest strategies is the 70-10-10-10 Rule.

I first heard of this rule from Jim Rohn, on his “Financial Independence” book. It opened my eyes and gave me a different perspective on how to handle my finances.


  • Build my emergency fund

  • Increased my savings

  • Continue to practice my faith by giving consistently

  • Do whatever I want! (travel, fly my parents, support my family, and to have some fun!)

I have been applying this rule in my life. Not easy at first but doable.
Consistent action to give portion of my income allowed me to experience the power of sowing the right seed and reaping at the right time.

Let me tell you a short story. I was working in I.T for almost a decade, when the company I worked for started to lay off people. Despite of the critical situations, I wasn’t let go.

I even received promotions, unexpected bonus,  which was almost 2 months paycheck, and increase almost every few months.

The bonus, I thought was a mistake because of the situation of the company, and I had someone deposit someone’s paycheue into my account in the past. So, I checked with H.R.

Then, she confirmed that it was for me, Performance Bonus, where no document, or discussion prior to that happened.

So grateful for what I received, I thanked my manager right after that. There were no discussions prior to that but I’m 100% sure that approval happened on management level before it comes to my paycheque.

Consistent habit of setting aside portion of my income opens more opportunities for me to receive more blessings in my life.

If you haven’t heard of Jim Rohn, you are missing out. This man has changed many lives including the famous American author, entrepreneur, philanthropist and life coach, Tony Robbins.

Here are some of the highlights from his book:

1. Financial Independence is a worthy goal.

A lot of people are having issues with financial independence because they have some moral issues that are confuse in their mind like the value of money, the danger of money,etc.
Mr. Sheof (Jim Rohn’s mentor) said, Why financial independence is a worthy goal?, Once you get money out of the way, you can’t believe the other dimensions of your life that you could work on… you have more time to work on other projects and you have the freedom to be with the people you want to be with.”

2. If you could do better, should you?

It is true that good life is not only about money and success. However, if you educate yourself more about life, you’ll see that money has a huge role. A good question to ponder is: If you could do better, should you?

Most of the time, people choose the lazy way, and that is just to survive. If you could give a better life to your family, to your kids, should you?

You may hear “I would rather to spend time with my kids, with my family than to work”. The response seems to be I’d rather spend more time with the kids, with my family than being in the office, BUT, what are you doing to make it happen? If you aren’t spending time to improve your self, your skills to be financially independent, you will be forever employee. You may not have that option to spend more time with your family.

If you could at least start with a plan, and ask this question again to yourself…If you could do better, should you? And work towards that plan. It’s not the amount that counts, it’s the extend of your value that counts…Financial independence is a worthwhile goal.

2. Financial Independence depends on the plan you have..It’s not so much of what you earn, it’s what you do with what you earn..

To achieve this, it is very important to understand that this will take time, planning and execution.
It doesn’t mean that you don’t need to work anymore but it gives you some options to have the freedom so you can enjoy your life and work on the things that matter to you.
Jim Rohn who have touched the lives of many people shared a simple way to achieve financial independence.The 70/30 Rule or 70-10-10-10 Rule.

This is also highlighted in another great book, which is highly recommended by  Warren Buffet, Robert Kiyosaki and Jim Rohn, “The Richest Man in Babylon”.

  • Learn to Live on the 70% of your net(after taxes) income.

  • Tithe/Give 10% of your income – Majority of successful people strongly believe about the importance of sowing and reaping…As you learn the importance of sharing and giving, God and the universe or whatever you believe in will open the doors for you for more blessings…

  • Save 10% of your income. – For active capital, for education for specific knowledge that will improve yourself to start and run a part time business.

  • Invest 10% of your income – For Passive income like investing in real estate, stock, mutual funds, etc.

This is just a guideline when you are starting, as you develop your assets,  and based on your life circumstances, you can adjust how much you put in each category.

NOW is the right time to work on financial statement

  • To know where you are going, you need to know where you are.

  • Be delighted in decreasing your liabilities and increasing your assets

  • Pay your bills with enthusiasm

  • The big part of what you do is your attitude about it..

  • It’s not the amount that counts, it’s the attitude and plan…

By applying these principles, you’re on your first step to be in control of your own finances.

What’s the financial strategy you use to achieve your financial goal?
If you don’t have one, it is never too late to get one!

financial independence jim rohn