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10% Rule for Savings

I was taught the 10% rule and still do this to this day! No matter how much you make a week or bi-weekly, always put 10% of it in your savings account, "out of sight, out of mind". You will be surprised how much you can save and in such a short period of time.


For example, if you earned $250 a week in take home pay, you would put $25 of it in your savings. What's the measly little amount going to accomplish, you might think? Well, if you did this weekly for 1 year, you would have $1300 a year in your savings account, earning interest for you. If you did that amount each week for 60 months, which would add up to 5 years, you would have $6500, not counting the interest.

I know this works and we still do it to this day. I am now in my 50's with a paid for home (2 bedrooms 2 baths). A 2005 Crown Victoria car and a 2002 Dodge Ram short bed pick up truck and still have money in the bank. When it comes to saving money, remember the 10% rule in all that you earn! Remember to always pay yourself first - the rest will follow in time.

By Paula Jo from Mebane, NC

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December 5, 20060 found this helpful

Hi Paula,

Thank you for this wonderful reminder. I had forgotten how important this is, and will start with my next pay check! Happy Holidays to You.


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December 15, 20060 found this helpful

Great idea!

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November 20, 20090 found this helpful

This is a good rule but for us the first 10% always goes to GOD. We tithe and offer, then pay ourselves the next 10%. The remaining 80% goes toward our overhead...utilities, mortgage, etc. It's never too early or late to start saving.

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November 20, 20090 found this helpful

I agree and the more you make the more you can save. It works.

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March 9, 20120 found this helpful

I'd just like to add, that if you don't feel you can do 10%, make it 5% or whatever amount you can do. After you feel comfortable putting that much aside, raise it 1-2% more. Keep doing that until you are up to 10%. As you start setting money aside and watch it grow, you will figure out ways to save more and more, until you are at 10%.

Don't get discouraged if some emergency comes up (it always does), and you have to use that money, since that's what you were saving it for. Just keep doing what you were doing and before you know it, the balance on your account will be up again. You will feel a freedom knowing that you are able to handle emergencies.

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