The 11:10 Rule!

The 11:10 Rule

The 11:10 rule. One of the other reasons we work for money and open up our lives to the finance stressor is this little rule. Many of you may earn wonderfully large incomes but debt is no respecter of income.

There are many things which make it difficult for us. Most people in Britain or the USA have ever one the most simple expenditure and income budget. Where you actually list all your income, everything, over time, salary or drawings, bonuses, list all your income and on the next sheet, list all your expenditure, everything. Then compare the figures at the bottom.

The 11:10 rule is simply this - if you do a budget most people find expenditure is about 10% over income. This is true for people of all incomes, and normally today - often blissfully unaware of the fact - we fund that difference on store cards or credit cards. Store cards and credit cards whisper to us, this is not real money. Well it may not feel like it when we spend it but it certainly feels like it when we pay it back! Little wonder then that a chairman of a leading bank said on TV I would never use a credit card. Maybe for some tonight we would do well to go back to cash for a while. It's not about cash of course it's about the 11:10 rule spending more than we earn and doing cash for a month may just help. 

Buy now pay later doesn't give us the moon it gives us ulcers. Buy when you can afford it no stress.

Buy now pay later always means stress. And can quickly have us working for the money

One Proverb puts it this way the borrower is the lenders slave. So will you let me challenge you tonight. Are you working to fund a consumer lifestyle. Ask yourself, ask your spouse, ask a friend, do you think I am driven by possessions, driven by things. They have a promise buried in them like a virus and the promise is this stress will rob you of the joy of ownership.