Simple Advice

I recently came across a powerful piece of information. It set out a template for personal financial planning and it went as follows:

  • 50% of income (max) on living expenses
  • 40% of income on savings, investments, and essential debt
  • 10% of income (max) on whatever you want

I know that there is as much personal financial advice out there as there are stars in the sky, but this particular advice resonated with me. It is so simple to understand.


(Simple to understand ≠ easy to do)


Questions to Reflect on

What do you deeply want?
How would you spend your time if you did not have to earn money?
What do you hope to achieve by doing what you are currently doing?
What would make you truly happy?
Why aren’t you happier now?
If you could go back 5 years, what would you do differently?
If you could look 5 years into the future, how would you want your life to be like?
What can you begin doing today to get your life to where you would want it to be in 5 years?


Writing to Think

When is the last time you had an original thought?
When is the last time you sat down in silence to just think?
When is the last time you thought through something, from the initial idea through to the logical end?

Thinking is hard, and thinking is work. A good way to improve your thinking, is writing. Writing forces you to develop, refine, and organize your thoughts. To get better at thinking, get better at writing; to get better at writing, write more often.