Robert Allen listed ten categories where the money we spend daily could be categorised. These ten categories are as follows:
1. GIVING: This represents the 10% you give to God Almighty as tithe, the offering you paid in your church and the money you spent in helping others around you.
2. SELF: After paying the first 10% to God, the next 10% should belong to you. This is in line with the advice given by the author of THE RICHEST MAN IN BABYLON. You may get the book and read further.
3. TAXES: The next category is taxes which you paid regularly.
4.SHELTER: This represents the money you spent on house rent
5. HOUSEHOLD EXPENSES: This includes money spent on feeding, clothing, etc.
6. AUTO: This includes money spent on transportation.
7. FUN AND ENTERTAINMENT: Anytime you spent money on movies, fast food, etc they should be in category seven.
8. INSURANCE: Payment for insurance, health, life and disability should be in category eight.
9. DEBT/MISCELLANEOUS:
10. BUSINESS EXPENDITURE:
If one is able to discipline himself to carry out this exercise whenever one spends money, it will not be difficult to have enough money for saving. To be able to understand this concept of financial control better, i suggest you get MULTIPLE STREAMS OF INCOME and THE RICHEST MAN IN BABYLON. These two books will change your financial fortune.
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