10-20-70 Rule

10-20-70 Rule.


10-20-70 Rule

Last week, I shared about the importance of charity and how it benefits both the giver and the receiver.  However, charity alone is not sufficient if you want to grow your wealth.  So today I will write about a guaranteed way to multiply your money.  It’s easy enough even for students on allowance, as long as they are disciplined.

But before I jump into it, let me ask you, do you want a  job with a better pay?  Are you thinking of asking a raise from your boss?  Do you want to have other sources of income?  (Oh come on, who doesn’t?)

Friends, top authors of personal finance books have one theme in common.  They all believed in this principle: Forget about asking for bigger salary or profit, if you don’t even know what’s the right thing to do once the money is in your hands.  Whether it’s Robert Kiyosaki or Anthony Robbins or Bo Sanchez or Adam Khoo or any other best selling authors in personal finance, they will tell you that increasing your inflow of money is only second priority.  The top priority is how do you manage the money that you already have.  If you can’t manage the money that you have now, what makes you think you can manage it when it grows bigger?

Matter of fact, getting a pay increase can do more harm than good if you are mismanaging your finances.  In short, the first step towards great wealth is not increasing your income (which is what most people do).  The first step is to properly manage what you already have.

So how do you know if you are managing your finances well?  Here’s what I believe.  If you spend over 70% of what you earn, you are not managing it well.

Now let me explain the 10-20-70 rule.  It simply means that at least 10% of what you earn should go to charity, at least 20% of what you earn should go to investment, and your expenses should not exceed 70%.  Do notice that this rule emphasizes on charity and investment first, your expenses last.  Do not spend first then save what’s left for charity and investment.  Save for charity and investment first, then spend what’s left.

For those of you who spend 70% or less of your income, give yourself a pat in the back.  Just donate at least 10% to charity and invest at least 20%.  Great wealth is coming your way.

For those of you who think you are not earning enough to live on 70% of your income, you need to understand this.  The problem is not the lack of money (although that’s what it appears to be on the surface).  The true underlying problem is that your lifestyle or your spending habits has simply gotten ahead of the 70% threshold.  And you became used to that lifestyle.

I remember when I first moved to Singapore.  I complained about my salary being not enough, or that the commission  scheme is too low, or that the bonus should be higher.  I moved to a different company that pays much better and I was happy earning much more.  But guess what happened after several months, I found myself complaining again.  The more money I receive, the higher my lifestyle and my spending habits elevate.  And so I moved again.  You get the picture.  I learned that no matter where I moved, it will not solve the problem.  Because the problem is not the lack of money, the problem is what do I do with the money.

Thank goodness I have learned the 10-20-70 principle.  It has impacted me positively both in my finances and in my outlook in life.  And I’m sharing it to you now.  It’s your turn to grow in abundance.

Have a great life,

Dan Mark See

[Regular topics here include success, investment, health, charity, positivity, faith, winning, abundance, knowledge, taking actions, personal growth, character development.  Please feel free to click “follow”, “like”, and “share”]


Law of Reciprocity

After catching up with several different friends, I was told that the story I shared with them has to be shared to others too. While deciding whether to write a book or a blog about it… oh well, you know which one I chose 

Let me talk about charity for this first blog that I ever wrote.

I used to question why Christians were asked to tithe when the Vatican is so freakin’ rich in the first place. Think about it. It sounded more like a great business scam.

What do you think? Why should we donate our hard earned money to the poor? Here’s what happened to me when I started donating to charity regularly.

Out of the blue, strangers called me asking if I can help him source for candidates ( I run a recruitment business). Instant clients! It didn’t stop there. Out of the blue, the right candidates were referred to me just at the right time too. Business deals just closed by themselves!

I would love to think of it as a coincidence, but it can’t be as deals continuously come in and closed almost by themselves repetitively. (Trust me, I have been in the recruitment industry for 5 years. No such luck ever heard).

Friends, what I learned and experienced is called the Law of Reciprocity. What you give, you shall receive back in abundance. If you plant a mango seed, you get more mangoes. If you plant papaya seeds, you get more papayas. That’s just how the world works. If you donate your money, you get more money. If you donate your time, other people will give you their time. Whether you like it or not, this is how it works.

To sum it up, what I learned is that the biggest beneficiary when you do charity work is NOT the person receiving your money (or time or whatever you are donating). The biggest beneficiary when you do charity work is you!

Beyond the shadow of any doubt, I am convinced that this is the way life should be lived. We are meant to share what we have with each other. But don’t just read about it. I invite you to experience it. I guarantee you will grow in abundance!

Toast to your success,


Charity is good. But charity alone is not enough if you want to grow your finances. Next time I will share the 10-20-70 rule. A guaranteed way to multiply your money.