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The Perfect Personal Budget Spending To Investment Ratio
Plan for tomorrow today!
What is the golden ratio
Mathematical Term
The Golden Ratio is a mystical ratio that stands for simplicity and orderliness that is divinely inspired.
The Golden Ratio is an irrational number represented by the Greek letter Phi.
An irrational number can't be computed with precision. Another example is Pi. Pi is approximately equal to 3.14159.... rounded to "3.14")
Phi is approximately equal to 1.618…. (rounded “1.62”).
The Divine Proportion
The golden ratio was referred to as "the Divine Proportion" during the Renaissance because it is flawless. Among the famous artists who have used this perfect ratio are Leonardo da Vinci, Michelangelo, Sandro Botticelli, and Salvador Dali
Inherent In Nature
The golden ratio isn’t just a number with a strong mathematical background. It’s a number that appears frequently in nature. You can find shapes and structures based on it in seashells, flower petals, leaves, DNA molecules, the Milky Way, hurricanes, and the entire human body. There is something very special about this ratio.
There Are Three Parts To Your Personal Budget
TAXES
INVESTING
SPENDING
You know the saying.
"Death and Taxes"
SPENDING
INVESTING
SPENDING
We all have to spend to live.
Are you living to spend?
INVESTING
INVESTING
INVESTING
Cash is NOT king
Compound interest IS KING
The Age-Old Question In Personal Finance
How Much Do I Invest?
Most models in economics are developed specifically for economies of scale. Golden Ratio finance is made distinctly for an economy of one – YOU!
A person’s savings rate of 100% implies that all income is going to investment/savings for future consumption, implying a steady state current-consumption level of zero.
(Plain English: If I save 100% of my income, then I don’t have money to buy anything now; therefore, my consumption level is zero. It’s all being saved for future use.)
A savings rate of 0% implies that no new investment capital is being created. Therefore any prior investment depreciates without replacement.
(Plain English: If I save 0% of my income, I have nothing to invest for future needs. Anything I have invested thus far will be reduced to zero overtime because I am not adding to it.)
Both situations are unsustainable for your life. There’s something in between that is ‘perfectly’ balanced; it’s nature’s ratio of balance.
There are many examples of "finance gurus" proposing various savings-to-spending ratios. Some come close to the correct numbers but don’t know why. But they are still wrong. They are not using money in a mathematically harmonious way. However, I have discovered the perfect natural measure. Golden Ratio Finance is the natural balance of investment to spending. Using this formula will guide you towards financial freedom.
Check out our Golden Ratio Calculator!
There are two types of calculators, STARTER PLAN and FREEDOM PLAN. The first calculator is used as a starter method where the spending amount is higher than the investment amount. This is used to help guide a person toward the second calculator. The second calculator is used for super-charging your investments and substantially cutting down on your time to financial freedom.
You may think to yourself that the spending amounts are too low for where you are today. You think to yourself, "I have to much debt!" or "I can't live off that amount!" The next step of this process is to "renew" and transform your mind to know that you don't have to. You have two choices: 1) You have to live down to what you feel is comfortable to you; or 2) You have to increase your income so that your spending percentage is enough to take you to FREEDOM VISION and achieve true financial freedom. The first option is a lie. The first option is what keeps people poor. You can do whatever you want; whatever you decide to do. If you want it badly enough, you can figure out a way to achieve it. Deciding you want to and committing to the plan is how you can successfully choose option two. The choice is yours.
If you choose correctly, I can show you exactly how!
If you are looking for more income and interested in building a scalable successful professional business, then check out our new program, R.I.S.E. To Financial Freedom.
Visit R.I.S.E. To Financial Freedom!
To your success and financial freedom,
Matt Shiflett
Creator of Golden Ratio Finance ® &
R.I.S.E. To Financial Freedom
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