100-10-20-70 Abundance Formula


Have you heard about 100-10-20-70? Nope. It’s not about The Da Vinci Code or any other secret code formula you have to decipher for years! It’s quite simple. 100-10-20-70 refers to Abundance Formula by Bo Sanchez about simple principles to guide you to successful money management. Many people are suffering from financial disaster simply because they don’t know how to live within their income.

The ultimate goal of 100-10-20-70 is to shed some light on how to improve your personal finance. Let me explain each sections of the Abundance Formula.

What is 100 percent?

Everyone has a core gift and talent. Therefore, you should find ways how to discover your passion. You might be good in teaching, painting, graphics design, marketing, web design, writing, public speaking, and other related skills which you can use to produce income stream. Whatever talents you have, use them so you can be a competent and productive individual as you do the task in a workplace or within any organization.

King Solomon reminded us to observe how diligent an ant is. Go to the ant, you sluggard; consider its ways and be wise!  It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest (Proverbs 6:6-8, NIV).

A simple definition of sluggard is lazy. A sluggish person has no initiative and time to hone his talent and skills. He is like a grasshopper in a fable refusing to work and store food for rainy days unlike the ant.

You are a child of God, created in His image. What could possibly keep you from reaching your 100 percent full potential? Find opportunities to learn and grow by attending workshops, seminars, and ask help from mentors. Never stop learning as investment in knowledge is important.

What is 10 percent?

The 10 represents a percentage amount of money you should return to God. We call it as tithes. One thing about tithes is that it provides opportunity to recognize our great Provider as the source of all blessings.

For instance, to have a decent job or good health is indeed a blessing in itself. The Toyota car you are driving,  the money you deposited in the bank, and the house you lived in are not yours.  They are from God entrusted to you.

Why does God need your tithes? The simple answer is that He wanted you to be a cheerful giver (2 Corinthians 9:7) and to protect your heart from selfishness or greediness. After all, God was the one who demonstrated the very first act of giving when He gave his only Son to die on the cross.

So, it is important to return your tithes to nurture the right attitude about God’s material blessings.

What is 20 percent?

The 20 represents a percentage amount of money you should set aside after returning your tithes. You can label it as savings or investment fund. This 20 percent fund is pattern to Joseph’s advice to Pharaoh of Egypt about the plan of action to set aside certain portion from harvested crops to prepare for famine.

Pharaoh then appointed overseers over the land to take one-fifth of the produce of the land of Egypt during the seven plentiful years (Genesis 41:34).

Then there was famine in all the other lands, but there was plenty of food in the whole land of Egypt. What about you? Are you saving 20 percent for rainy days and other related emergencies? You can invest 20 percent in mutual funds or stock market to grow your wealth over time.

What is 70 percent?

When tithes and the investment fund have been set aside, you must learn how to live with the remaining 70 percent of your income.

If you are earning 20,000 pesos monthly, then you should return the 10 percent tithe (2,000 pesos) to God, then save 20 percent (4,000 pesos) and live with 70 percent (14,000 pesos) as your expenses. The reason why many Filipinos are suffering from chronic debts and financial distress is that they spend 100 percent of their income.

You may find the 100-10-20-70 formula hard to follow at first, but with strong commitment and dedication to improve your personal finances, there is no reason for you not to achieve your financial goals.

So, why not try following the Abundance Formula?

Honor the Lord with your wealth, with the firstfruits of all your crops. Proverbs 3:9, NIV

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Jun Amparo

Jun Amparo

JUN AMPARO is the author of two inspirational books about personal finance and marriage.  He is nominated as Huwarang OFW 2019 organized by The 700 Club Asia and is pursuing his doctoral study in education. Presently, he is working as a university counselor and lecturer at Asia-Pacific International University in Thailand.