90-10 Rule

Lately I’ve been getting in the habit of practicing what I call the 90-10 rule. Admittedly, this is a hard subject for me to bring up with most people, as they usually scoff at it when given the chance. It's one of those topics I have to sort of create a buildup of anticipation for, working my way towards what I want to say instead of outright saying it. It’s not something I usually enjoy, and I much prefer to just say what I have to say and get it out with, but with the 90-10 rule it seems like that’s ALWAYS been a different story.

So what is the 90-10 rule? It’s the act of keeping 90% or your money, and giving the other 10% away. Whether it’s to charities, family members, sponsoring a cause you believe in, etc. It’s the notion of giving to others instead of always to yourself.

The problem with explaining the 90-10 rule to most people however is that they automatically assume it has to be giving your money away to a charity. In reality, giving 10% of your money away to charities is a pretty honorable thing, and there’s certainly nothing wrong with that. In regards to the 90-10 rule though, it’s more about giving your money away to any person or organization that needs it. It could be a family member, neighbor, friend, or co-worker, anybody that you think could benefit from such an act. It doesn’t just have to be straight money though, it could be using that money and buying a gift for somebody and presenting it to them, or spending that money on an evening taking somebody out somewhere. It’s about getting out of the my money attitude that so many people carry with them today. In a society saturated with such behavior, it’s become all too common to stress what’s in our wallet instead of what’s actually going on in our life.

The interesting thing about the 90-10 rule is that once you can start to give some of your money away to others, you actually feel less stressed about it. The problem with constantly stressing over your bank account is that it puts money in control over you instead of vice versa. I mean, with so many bills to pay, you wouldn’t DARE give money away! Besides, you’ve been wanting that new stereo lately or set of golf clubs, and those things certainly aren’t going to pay for themselves, right? How could I even think of giving away the slightest bit of my money?

This is why the 90-10 rule is so difficult to discuss with a lot of people, and until they can place a bit of trust in the good that it’ll do for them, most people are reluctant to try such an approach with their money. In truth, I can’t blame them though, as I lived many, many years of my life harboring such a mindset. Thinking that unless I was constantly hoarding money or some form of wealth that I wasn’t “secure” or that anything that didn’t have “value” attached to it (whatever that is) was a wasted purchase. If I didn’t have anything to show for the money I had spent, then it was obviously a wasted transaction. In truth though, now I actually have a higher abundance of money than I did previously, WHILE still managing to give some away. Understand that you also don’t have to be “rich” in any way to follow through with the 90-10 rule. Anyone with an income can participate, as it’s not so much about how much money you give out, but rather how much effort you put behind your money. You don’t need to worry about trying to justify your spending here, as the only justification you need is the clear mindset that you helped somebody else out. I used to spend a ridiculous amount of time both analyzing my purchases and then trying to decipher how much money I had left that could be used on other things. It was almost like I HAD to be buying something to be happy, and chances are good I would have gone through hell and high-water before even dreaming of giving away some of my money.

The thing is, there are a lot of good organizations out there, and you can find something in nearly every category imaginable. You can go the more traditional route and donate your money to an organization like the Red Cross, Doctors Without Borders, Feed the Children, or you can even be more creative with where you place it. Regardless of where you live, there are always tons of local charities and drives that consistently rely on money from donors, and even if that’s not your thing, you can always find a niche you like and choose to support that. It could be something in the way of Vegetarianism, Rainforest Preservation, Children's Education, or anything that interests you. It doesn’t have to be a strict cut and paste of what others choose to do, which is why the 90-10 rule is so flexible. It’s simply about taking 10% of what you have and using it to help somebody else, that’s it. However you choose to go about doing such a thing is completely up to you.

While the benefits of following the 90-10 rule are generally pretty obvious, for those of you still in doubt, I can easily confirm that it’s had a very profound effect on the way I look at money. I don’t look at it as something I need to amass to be happy, but rather something that I can use to help me get to the places I want. Whether those places are social, educational, or entertainment related, they all represent avenues money can lead me to. While money can TAKE me to those places, it’s still dependent upon me to get what I want out of each situation. Money can buy you the fanciest clothes, nicest car, and biggest house on the block, but it certainly won’t buy you loyal friends or a faithful spouse. As Soundgarden once said, “money can’t give what the truth takes away.” Money can certainly take you to a lot of places, but it’s always been up to you to decide how the events in your life turn out. The more you lean on money to get you through the times, the more you take away from yourself in the process.

While I encourage everybody to at least try the 90-10 rule, knowing that many people won’t, the least I can ask for is for people to be less dependent on money and more reliant on their own abilities. Don’t use money as a crutch to “buy” yourself happiness, rather create and enjoy that happiness yourself. Money is nothing more than a vessel that we use to take us from situation to situation, experience to experience. At the end of the day though, it’s you, not money, who shapes those experiences and ultimately determines their worth.