Tuesday, September 04, 2007

How to spend money?

Till today, my parents have been telling me to save money for a rainy day - and I have been obedient:-)

But in our modern globalised society, we need better financial strategies to sustain and grow the economy, bridge the income gap between the richest and poorest, help the underprivileged and of course, make ourselves happy.

There are many interesting online discussions on how best to spend money - It’s Okay to Spend Money is one such insightful discussion.

I am no economist but it is obvious that over-spending and under-spending are absolute no-no's; the former bankrupts consumers, the latter bankrupts retailers and both hurt the economy - and make everyone unhappy.

And so, I would like to propose my simple 10/20/30/40 rule (1234$) for spending money:
- Donate 10% to charity
- Save 20%
- Indulge 30% on non-essentials
- Spend 40% on essentials

So far, 1234$ worked well for me - do try it out and share your experience here - economists, your expert advice is needed too - let's discover the best possible way to spend our hard-earned money!


At 9:01 AM, Anonymous Writer's Notes said...

Hi, David!

I've just completed my review of your blog for ReviewMe. You'll find it at http://www.writersnotes.net/blog-review-just-a-thought/. Hope you'll be pleased with it! I enjoyed writing about your blog, because there's a great deal of substance to the things you have to say.

Jeanne Dininni


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