Why 10% of Your Earnings Should Always Be Yours

  05/01/2025

One of the core principles shared in The Richest Man in Babylon is the importance of growing wealth and financial stability; always come with yourself and to ensure stability, must save a portion of your wealth for yourself. That's why it has been said in ancient wisdom that "a part of all you earn is yours to keep". It is an idea for anyone striving for long-term wealth and financial freedom. Let's dive in!

Pay Yourself First

Most people pay bills, cover expenses, and only then think about saving if there’s anything left. But, it is necessary to follow a powerful rule: always pay yourself first. Before you spend on anything else, set aside 10% of your income. This isn’t what’s left over, it’s what comes first. Prioritize your own future above all expenses, and begin to treat saving as a necessity, not an option. It’s a small amount that can lead to big growth over time.

10% is Just the Beginning of Wealth Accumulation

Saving 10% of your income may not make you rich overnight, but it’s the first step in building a strong foundation. This simple habit teaches discipline and opens the door to compound growth. Over time, those small amounts accumulate, giving you capital to invest, create opportunities, or cover emergencies, without going into debt. It’s not about how much you make, but what you do with what you keep.

Consistency Builds Confidence and Security

Remember "what each of us calls our 'necessary expenses' will always grow to equal our incomes unless we protest to the contrary." By consistently keeping 10% for yourself, you create a financial buffer. You gain peace of mind knowing you are not living paycheck to paycheck. This practice helps you move from reactive to proactive financial behavior. You’ll start planning for the future with more intention.

Your Savings Can Start Working for You

Once your savings reach a healthy level, the next step is to make your money multiply. It means investing wisely, not gambling, but making sound choices that grow your wealth steadily. When your money begins earning more money, you’re on the path to financial independence. The 10% you save today becomes tomorrow’s opportunity to grow without relying on loans or luck.

The Habit Builds Long-Term Financial Wisdom

Committing to saving a portion of your income rewires how you think about money. It encourages living below your means, appreciating delayed gratification, and developing a vision for the future. Even in modern business or freelancing, the principle holds strong: always reserve a portion for growth, no matter how small your earnings may be in the beginning.

Conclusion: Wealth Begins with Keeping Your Share

Saving 10% of your income is a habit anyone can start regardless of their profession or financial background. It is the seed from which lasting wealth grows. If you want to build financial strength, stability, and freedom, start by honoring this simple rule, a part of all you earn is yours to keep, and let that 10% be the first brick in your legacy of wealth.

 

This article is part of our Business Coaching blog series. At Dataczar we talk to a lot of small businesses. We’ve found a few books that we keep recommending time and again. To better help our customers, we’ve added a Reading List for Small Businesses to our website. We encourage every small business owner to read and keep these timeless business books on their office shelf.

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