Sunday, August 10, 2014

My 10-20-70 Rule

I believed most of us (me included) are still having our day job and earning the active income while looking for ways and means to add additional streams on income as passive as possible. Stocks Investment of course is one of the means. 

Of course, before we can invest in the stocks, we need to have capital and most of the time it is from our savings. Today, I would like to share my 10:20:70 Rule that I am currently using to segregate my monthly active income : 

10% : Saving - Emergency Fund
20% : Saving - Investment Purpose
70% : All monthly expenses/liabilities

[My expense ratio is higher as my wife is pursuing her study and hence I am contributing all the monthly expenses]

Do you maintain such ratio for your monthly active income? Of course, different people has different level of liabilities and hence the ratio should be adjusted according to your situation.



  1. Check out the 50/30/20 rule for financial planning!

    1. Hi Winston, thanks for the input, will check it out!

  2. Hi Richard,

    70% is quite a high proportion. Its quite straining if only one person is working.

    May want to reduce expenses if possible.


    1. Naro : agreed with you but for the time being, this will be our temporary arrangement! Thanks for the advice though


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