and being quick to offer back to God the first 10 percent of any income you receive is the foundation of lasting wealth . When you consider how few people in America tithe their income , it ’ s no surprise that so many people are in extreme debt or that bankruptcy is at an all-time high . Those things are natural results of violating this very first component of the 70 Percent Principle of Lasting Wealth .
The second 10 percent goes to debt or savings . If you are in debt , the second 10 percent of your income goes toward paying off your debt . This is what you can throw toward your debt snowball . If you are already out of debt , congratulations ! You now get to take a major step toward securing your financial freedom . As soon as your paycheck comes in , put the second 10 percent of your income into savings .
“ In the event of a job loss or major unexpected expense , the average family is three-to-six weeks away from bankruptcy .”
Modern Americans are terrible at saving money . According to one source , in the event of a job loss or major unexpected expense , the average family is three-to-six weeks away from bankruptcy . That ’ s a frightening statistic . How does it line up with your reality ? If your income stopped , how long would you be able to live on your savings ? Financial advisors recommend having at least six months of living expenses saved . Yet most people don ’ t have anywhere close to that amount of money saved — which means that unexpected circumstances can create major catastrophes . Saving money requires the discipline to say no to our financial whims , choosing instead to look toward what we will need or enjoy more in the future .
Once you have about six months of living expenses saved , then you can start tagging your savings in other ways . Maybe you want to save for a family vacation you ’ ve always dreamed of , a remodeling project , or your kids ’ college educations . The point is that you live with an eye toward future expenses and continually put money aside to prepare for those expenses in the present rather than allowing them to put you in a financial bind in the future .
The third 10 percent goes to savings or investments . If you are in debt , the second 10 percent of your income goes toward your debt , and the third 10 percent goes toward saving in the way we just discussed . But if you are out of debt and the second 10 percent is going toward your savings , things begin to get exciting . Now you can take that third 10 percent off the top of your income and begin investing wisely .
Investing for your future — not to mention investing to expand your ability to give to God ’ s kingdom — is part of being a wise financial steward . But as with everything else money related , the condition of your heart is key here . There are good reasons to invest and not-sogood reasons to invest . When you invest sensibly and with the right heart , investing is a crucial part of your overall plan for financial freedom .
To step into the financial future you want , you have to have well-defined goals — goals for giving , saving , and investing in a wise , God-honoring way . The 70 Percent Principle of Lasting Wealth
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