Ahoy Mateys!

This is the Captain speaking along with my feathery parrot companion to discuss finance!

I don’t know about all of you, but the amount of financial information available is overwhelming at times. Books and blogs and videos and conferences and invest this and save that and for the love of barnacles DON’T DO THAT!

-I disagree.

Oh? You don’t find all the information available intense at times?

-No, I just think you should do “THAT”.

-By “THAT”, you meant jump into a shark tank while wrapped in bacon right? Yeah, you should definitely do THAT!

A note to my crew, I found another way to make financial information a little easier: Ignore any advice from parrots.

-I’ll sell tickets! I’ll be a millionaire! I’ll buy a house made of crackers with worm edges!

*Ahem* Moving on while feather butt is in dream land, I’d like to share with you some of the simplest advice I have ever heard regarding money. It is called the 10-10-80 rule.

“Give 10%, Save 10%, Spend 80% and you will be in good shape.”

The first question you probably have is whether this applies to gross income or net income. This is a personal preference and I prefer to use net income in my example. Why? Because that’s the money that you can actually see and can actually play with. The money taken before the check comes to you, such as for your 401k and other items, then becomes a bonus that you don’t worry about and helps in the long run.

So lets say you make 2000 doubloons (net income) a month. Following the 10-10-80 rule: 200 will go to the charities of your choice 200 will be saved/ invested for the future 1600 is for life expenses and fun! Why follow this? Why not just have all 2000 doubloons for yourself?

Give 10

Giving is an amazingly psychological experience. Instead of thinking “I don’t have enough money for me, I can’t just give my money to other people!”, you are instead thinking “I have more than enough money for me, I am more than able to give to others in need!” If you are making 24,000 doubloons, you are in the top 2.24% of the RICHEST people in the world according to the Global Rich List.

I’m not going to force you to give your money, don’t worry. Just something to think about. I personally give $400 a month to charities, $90 a month to patreon, and random other amounts throughout the year which puts my giving at about 12% of my net income, and I am very thankful that I am able to give what I can.

-I give 100% to charities!

Pooping on the community garden is NOT the same as giving to a charity!

-Agree to disagree.

Save 10

Spending is fun because it makes the present day fun. Saving is awesome because it makes the future AWESOME. Sure, you could spend that 50$ on movies this month. OR you could scale down to 10$ on movies, save the $40, and in 10 months you have $400 so you can FLY TO HOLLYWOOD TO SEE MOVIE STARS!!

Delayed gratification means giving up something now so you can get something cooler later. I’ve got a TON of cool things I want to do: world traveling, buy a pirate ship, buy a house, go into space, ect; and to do any of those, I’m going to need money! I’ve got about 45% of my income going to savings and I hope to increase that so I can get to doing the AWESOME STUFF sooner! You may not have the same big dreams as me, and that’s totally cool. A dream I bet you do have though is to be able to retire comfortably. If you spend all your money now, you can never retire. Unless you think Social Security will carry you through…

-Yeah, no confidence in that plan.

If you save 10% of your money, you can retire with much more confidence!

-Much better chance of retiring to the beach with parrot señoritas bringing me drinks!

Spend 80

I really don’t think I need to explain this one. This is the money you have to live your life for this month, both for necessities and fun!

Do you have to spend all of it? Of course not! Can you spend all of it? Of course you can!

You gave 10, you saved 10, this 80 is for you to live your life as you wish!

-If you don’t spend it all, feel free to send some my way!


If you are having trouble getting started and don’t know what to do, the 10-10-80 is a great starting point to get your giving and savings muscles flexing while still letting you live your life.

-Invest in worms! Great rate of return!

And definitely DO NOT take financial advice from parrots!

Until next time, avast ye scoundrels!

Picture Credit: Cliparthut.com


One thought on “10-10-80

  1. Pingback: Stopping Donations…For Now | The Pirate's Life For Me

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