A quick money tip – the 10% rule

One of the most important things that The Richest Man in Babylon taught me was to put away 10% of your income.

With online banking making financial transactions easy, it is simple to set up a regular transfer to save that 10% into a high-interest, 30 day (or more) notice account as suggested by David Bach in The Automatic Millionaire. Having the money out of your account on the day after you get paid is quite useful, you’ll hardly miss it and you won’t have to scratch around to find it towards the end of the month, with all the associated guilt that would entail.

However, if you can’t manage 10%, even 5% is better than 0%, right? Make a commitment to start saving automatically, and for the long term, as that’s where serious gains are made, thanks to compound interest (but more on that in a later post).