Financial Health & You - Money Check Up Anyone?

Lab 3 - The 90 Percent Rule

Ken Little in his book titled Personal Finance At Your Fingertips recommends that you save 10 percent of your income. Have a look at the table below and you will see that income minus expenses equals to net cash flow (A-B). The 90 Percent Rule requires the net cash flow (A-B) to be at least 10 percent of your income (A).

In Malaysia, in view of the current high inflation rate, it is not easy to save 10 percent of your income. To us, it does not matter whether you are able to save 5 percent, 10 percent or 15 percent of your income, the more crucial issue would be that you start saving and start nurturing the habit of saving.

You have to start someday, why not today?

MY FINANCIAL STATEMENT