In a recent eye-opening conversation with Mauricio Rauld, a distinguished real estate syndication attorney and partner at Premier Law Group, we delved into counterintuitive financial strategies that challenge conventional wisdom. Mauricio, author of “Legal Strategies for Everyone,” shared insights that could revolutionize how we think about wealth building.
The Jim Rohn Model
The discussion began with a paradigm-shifting concept from Jim Rohn, a legendary business philosopher. While most financial advisors recommend saving 10% of your income, Rohn proposed a more ambitious 70/10/10/10 model – spending 70% of income while allocating 10% each to active investments, passive investments, and charity. But here’s where it gets interesting: Rohn himself admitted he couldn’t spend 70% of his income, calling such spending “obscene.” Instead, he lived on merely 10% of his earnings, investing the remaining 90%.
This radical approach to money management stands in stark contrast to the common practice of lifestyle inflation, where spending increases in lockstep with income. Grant Cardone echoes this philosophy with his 50/50 rule – living on half your income while investing the other half. The key isn’t focusing on specific dollar amounts but rather on maintaining spending percentages as income grows.
