The 10% Rule on Everything

I would like to try the 10% Rule on a whole new level. Everytime I pass money around to use for savings and investments, I'll take 10% of it and keep it for myself.

For example, I have an imaginary P200,000 revenue from business and other income. I'll take 10% right off the bat before using the money to pay for expenses and investments.

200,000
- 20,000 <-- 10% goes to savings
-------------
P180,000

Now I'll pay my expenses and investments.

P180,000
-  36,000 - expenses
-  50,000 - investment on capital gains
-  50,000 - investment on cash flow
---------------
P 44,000

Wow. I still have P44,000 left to spare. I can use this money to anything I like, either to spend it on clothes, travel or re-invest it to make another cashflow. I'd rather spend it to enjoy life. Or I can put it on the savings and maybe build myself a sizable savings to buy myself a land. I look forward to buying my own property soon.

On Stocks

Here's I think the 10% rule would show its versatility. Once my stock declared a dividends and then paid me. I'll save 10% of the dividends (also after expense like tax), on cash position so I can build a fund of cash to either withdraw for my personal use or to take advantage of opportunities when it happens.

For example, right now I have P15,000 per month income on dividends, Thats around P180,000 a year. Let's use the annual dividends for computation as dividends are not really on schedule with per month, its usually on an annual basis.

P180,000
-  18,000 <-- 10% goes to cash position.
------------
P162,000 - reinvested to current holdings

I think by this way, I can still reinvest the money, but have a budget to spend on personal wants, enjoy life and not to over-save. Just remember the rule, keep 10% of everything that comes from earnings.