Financial Living

I read this article (which I subsequently can't find), that described a radical way of financial living called 10-10-80. Since I can't find the article anywhere, I modified the 10-10-80 plan a bit to fit my lifestyle. The 10-10-80 financial living plan is where you give away 10% of your income to someone who is in need (charity), save 10% of your income, and live off of the remaining 80% of your income.

I modified this by applying the 10-10-80 plan to my net income. Technically, I am saving more than 10% of my income, since I try to contribute the maximum amount to my 401K account. I don't know if the "real" plan calls for the 10-10-80 to be applied to your gross income vs. your net income, but I decided I would do it on my net income.

I was already giving some amount to charity, so I figured out what more I needed to give to get to 10% and did that with the first paycheck I started this plan on. Then, I saved 10% in an emergency/house/divorce fund. It sure did feel good to be able to give the one charity more money from that first paycheck (my military retirement from July & my regular pay check from 1 August) and to see the balance of my emergency/house/divorce fund increase. Then, reality hit.

I am not someone who balances their checkbook. I can't remember the last time I balanced my checkbook and really, in this day and age of on-line banking and debit cards, who uses a check register? I am guessing there are a lot of people out there who still do, but I prefer to monitor my account every few days. Well, there came the day where I was short of funds when trying to sue my debit card, so I put the purchase on my American Express. Then, I transferred money from my regular savings account to my primary account to cover expenses.

Another paycheck came in on 15 August and I had all intentions of plugging the numbers into my handy dandy spreadsheet to come up with the 10-10-80 plan, but before that could happen I once again found myself short of funds and having to use my American Express card and having to transfer money from my regular savings account to my primary account to cover expenses.

This is not how the plan works. What I am supposed to be doing, is going without when I use all of the 80%. So, let me justify my actions.

My daughters and future son-in-law were back in town for a wedding of a friend and for my youngest daughter's engagement party. So, I spent money on a bachelorette party, an engagement party, and general spoiling of these adult kids. It is a bad habit and pattern that I have fallen into over and over again - spoiling these kids that way. More justification, the engagement party was held at my house and her dad did not offer to pay anything. To give him credit, he did bring three five dollar foot long sub sandwiches and some beer. I bought all the food and half the alcohol.

Where do I go from here? I wait until the 29 August paycheck and 1 September retired income to kick in and make up for the 15 August paycheck and live on less.