Life Traveling in this earth has a lot of hard work and discipline to make for it is not easy to have a good living. But how can anyone be able to come up and experience financial breakthrough making his every day needs meet and will not be worried when he retire because everything is settle and place in a proper order and manner.

       I do agree that it doesn’t matter how big anyone’s salary or income is but what matters most is how big is his savings and investment from his salary or income is.  I knew someone who finished his course from prestigious university, landed a good job and having high position with high salary but when he retired from work he doesn’t have any savings/investment at all, and to the worse not even a small home he did not have either.

       Here I will share with you a simple budgeting that when you apply it sincerely, I know for sure you will be loved by your children, grandchildren and the rest in your community because you will not be depending from them but rather you will help and give them support according to your own disposal.



“10-10-20-60 PRINCIPLE?”

 What is then the 10-10-20-60 Principle?

       I develop and practice this principle five to seven years ago and it works. It is the proportionate allocation of a monthly income to different expenditures and needs:

  • 10% –              Tithe or Donation
  • 10% –              Savings (emergency fund)
  • 20% –              Investment
  • 60% –              Expenses

1. The 10% as Tithe or Donation

       If you are a believer of God, I encourage you to give your Tithe to the Lord faithfully through the church you are a member of, for it is a mandatory requirement for each God’s servant to comply with it (Malachi 3:10). No matter how much you are receiving, you must give the actual 10% of your income back to the Lord as your Tithe. That God who is the maker of the universe and everything in it and from whom all blessings flow will be honored and glorified that He will bless you more and more. There are indeed many Scriptural basis about it!

“Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the LORD Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it.” (Malachi 3:10)

       However, if you’re not, I advise you to give the 10% of your income as donation to charities of your choice to help those who are deeply in need that you may become a channel of blessings upon them as part of your gratitude and thanksgiving for all the blessing that our loving God has given you!

Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. (2 Corinthians 9:6)

  1. The 10% as Savings for emergency fund

       This allocation of your 10% income shall be saved in Bank for you and your family emergency needs. I say for your emergency needs because all basic needs are included on your 60%. When I say emergency needs, it refers to sickness, hospitalization, death, payment of basic needs in case of temporary no source of income for a while. Please take note that this 10% is not to be used on paying the regular basic needs, for dining out or whatsoever. When these kind of emergencies happen, when will you turn to and when will you go for…

  1. The 20% as Investment

       This allocation is for the purpose of investment for your future. An investment is something that will earn for you for a long term that will be used for your retirement, such as Trust Fund, Equity Fund, Equity Fund, Stock Market or any Business instruments that you may select. But any investment to anyone of these or business alike shall be done accordingly with proper research and study before going to engage in.

       So why is it necessary for you to invest for your retirement? Who will do it for you anyway aside from yourself? Because you are getting older day by day and time will come that you cannot even work as before and besides your health and strength will subside as well. And who will support you by then? The fact is you and I can’t depend form other people for our needs, not even to our very own children for they have their own family anyway!

       Your next question maybe is why 20%? Well that is the minimum that I suggest, you can raise it up to more than 20% but do not make lower than that. I based this 20% investment from Genesis 41:34-36 when Joseph told Pharaoh to appoint someone to take a “fifth” of the harvest (equivalent to 20% produce) of Egypt during seven years of abundance to store and reserve it for the coming seven years of famine.  The story tells us that because of that campaign made by Joseph, Egypt and the rest of the world were saved from starvation and death due to the great famine. What I’m trying to say here is that while we have the opportunity to earn much today, we should save and invest for our future when we cannot work and earn for a living that we can be able to save ourselves from that coming famine that will surely come to our age!

       And as mandatory practice, do not ever, ever, ever use your investment for any purpose no matter what happen! But wait till grows say 10, 15, 20, 25, or 3o years above till it comes to your retirement age. The younger you are now, the better you start but if your age is like me who is above 50 – it’s not too late yet. I hate to say this that I learned and live with this principle only seven years ago, but ever since I knew it I started it till now and it really works, I tell you!

       If you ask financial experts, advisers and gurus, they will answer you the same, invest at least 20% of your income for retirement.

  1. The 60% for Daily Expenses

        This 60% is for expenses. Meaning to say that your authority towards spending for you and your family basic needs is only within the boundary of  60% of your monthly income. Say if you are earning PhP 30,000.00 Monthly Income, you are only allow to spend the PhP 18,000.00 of it which will be distributed according to the basic needs of your household, such as…

  • Foods (cost /meal x # of heads x 30 days)
  • Housing (mortgage, rent, future home)
  • Education ( Tuition fee, allowance, books, etc)
  • Electric Bill
  • Water Bill
  • Telephone Bill
  • Tax
  • Car (mortgage, gasoline, etc)
  • Transportation allowance (work and others)
  • Health & other benefits (GSIS, SSS, PHealth, UMDF)
  • Loan
  • Representation & Date Fund (love ones, friends)
  • Insurance (health card, life or accident)
  • Hobby
  • Others (Specify):

TOTAL ( not more than 60% of Monthly Income )

Example of 10-10-20-60 Principle:

Monthly Earning                                                               –      PhP        30,000.00

10% ( Tithe )                       –              PhP        3,000.00

10% ( Savings )                  –                              3,000.00

20% ( Investment )          –                              6,000.00

60% ( Expenses )              –                              18,000.00

Total                                                                                    –      PhP        30,000.00


       I will emphasize that the key to successful meaningful budgeting is discipline and no more, no less. If you have some questions and need personal advises or suggestions, please leave your comment below and follow and like my blog or send me a message through pm or email.


Blessings and Cheers everyone!









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