The 70-10-10-10 Rule

The 70-10-10-10 Rule

By Jim Ingersoll – Author, Entrepreneur, Coach

Are you actively practicing the 70-10-10-10 rule?

What is this 70-10-10-10 Rule


This rule states the following distribution of your income:

70 – Spend the first 70% of your income on everything you need, entertainment, etc.

10 – Save the next 10% of your income for your future

10 – Invest the next 10% of your income for your future.

10 – Give the final 10% of your income.

The 70-10-10-10 rule sounds so easy, but it is so hard that very few people ever practice it!


You may be wondering to yourself, why in the world would you want to do something like this?

the 70-10-10 rule







Here is the secret – it flat out works!

It does take commitment, discipline, planning, work and a vision for your future but the rewards far outweigh the work and discipline.

Let’s go through each of them, how to make it happen and what the results are:

70% – Spend 70% – This one is easy?  You get to spend the first 70% of what you make on anything you want.  This is your doing life fund.  The really hard part is that 99% of people can not do it.  Remember the “average person is paycheck to paycheck, spends more then they make and is falling further into debt each year.  Spending 70% of their income is something that creates nightmares for most people.

Would you be willing to make changes in order to successfully hit the remaining 10 – 10 – 10?

Would you be willing to cut some personal expenses?  Maybe less trips to starbucks, maybe bring your lunch to work, change your cell phone plan around or chopping up those extreme high interest credit cards?  To live on 70% takes a huge commitment, discipline and focus on achieving this result.

10 – Save 10%.  Many reading this right now are thinking that you are going further into debt each month so how could you possibly save 10% of your income.  OK, so here is how you start.  Start SMALL, get good at saving the SMALL amount and build on it over time.  If you are working a job that pays you $1,000 per week and you are constantly behind in your bills, maybe start with saving $20/week or even $10/week.  The key is to START, no matter how small you start with.  You can build it bigger over time as you implement the 70-10-10-10 you will find more income then you realize you have right now.

10 – Invest 10% – This one is easy for most of my readers, because you are already investing.  You are leveraging small amounts of money, investing into real estate and creating nice paydays.  Here is my 10% challenge to you.  Invest 10% of your time into learning new skills and strategies.  Most of us are awake about 16 hours every day.  What if you take 1.6 hours per day and invest into reading, watching training videos, spending time with your coach or listening to a great podcast?  Would that have a profound impact?  Would it change your trajectory in life?  I bet it would!  If you are working 2 jobs and have no time to invest and no money to invest, I would challenge you to write down how you spend the next 36 hours (3 days).  How many hours do you sleep, work, drive your car, watch TV, etc.  You will find opportunities in your schedule if you are willing to turn off your TV or turn your car into a mobile classroom (like I do)!


10 – Give away 10% –  Ouch!!!  For some reason this one really hurts average people.  Why would I give away a single penny of my money when I am living paycheck to paycheck?  If that is you, try this, start by giving away some TIME!  Begin volunteering your time.  There are lots of places to volunteer time at the local boys and girls club, coaching kids sports, PTA at the school, feeding the homeless, helping at your local church, etc.  See the need and say YES to helping.  As you GIVE, you will RECEIVE!  It is such a TRUTH that most average people never get to experience.

As you give your time you want to begin to give your resources.  The same is true here, the more you GIVE, the more you RECEIVE!  Start with a small amount if you have to.  It all counts and will build over time.  Give first, then you receive is such a truth that you must reach out and give it a try!  It is the real reason I love teaching and coaching real estate investors.  The more I give, the more I receive back in so many ways that it blows my mind!


That’s it – the simple 70-10-10-10 rule!

It is a journey to a place with great rewards!

Are you going to take the challenge?  If you say you can’t do it, then please give it a try on a very small scale and stay consistent to the plan.  The discipline will lead to your receiving fresh, new things along the journey of life!

Make it a goal to practice the 70-10-10-10 rule this year!





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  1. Rick Bresler says:

    Great blog. Especially the 10% giving. That has been really, really, really hard for me to do, even though I can afford to do it. But it is a goal I need to accomplish in 2016.

    • Jim Ingersoll says:

      Hi Rick

      Great point. Giving that 10% away is hard but the more you give, the more you receive. Getting in the discipline of each of the 10’s is important, so anyone can start with a small amount and build from there. Small amounts consistently applied over the long-haul build into huge benefits later.


  2. I like it jim…

    However I think you should give first.. Then save then spend then invest… 🙂

    Giving is putting others first then you save to pay yourself then spend to cover your needs…. The laws of nature are such that you reap what you sow the more you give the more you will get… I have found that when I am giving I always have enough for me but when I’m not I don’t…. The book. “Go-giver” is great and it teaches this comment very well

    • Jim Ingersoll says:

      Love it Tom!


      • James Bischoff says:

        Hi Jim I would like your knowledge on this question, I have a rental under contract for 124,600 with seller, they were asking 160k, they want cash offer and I had that lined up with a private lender, well the lend for some reason doesnt get back, so now I have to go and get a loan on this property( they might call it a mortage, its is from private money financing or do I have to check with them, the property is good for this amount, comps come in higher than that amount), Iam asking for 160,000 and want to have that money deposited in my checking account and have the 124,600 transferred to the sellers title company is that ok to do, that way they would get there cash and I d get my extra money for updates and other investment

        • Jim Ingersoll says:

          It would be much better to fund and funnel all the money through your settlement agent/title company/attorney

          Congrats on good negotiating!

  3. 10% of 100%? I don’t understand 10% of the total amount or the remaining. I have 100 $10 give, $9 invest, $8.10 save?

  4. Is this on your net or gross ?

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