__The Golden Ratio__

There is a curious phenomena in math, geometry, physics and natural science. Some numbers or ratios show up consistently and repeatedly and are called mathematical constants. One example of this is "Pi" and it is equivalent to 3.1416. The number "Pi" is a ratio and it refers to what you get when you divide the circumference of ANY circle by its diameter. No matter the size of the circle or the length of the diameter, the final ratio always equals "Pi". This ratio is just one of many similar, consistent, repetitious and prolific numerical algorithms that are embedded in the physical and abstract world.

Another similar number is called the

This ratio shows up in the length of your hand to your forearm, or in the logarithmic spiral shape of snail shells, or in the spiral pattern of a hurricane.

This ratio was used in the design of nearly all Greek or Roman architecture and to design the shape of the face in the Mona Lisa painting. The

The

Even more simply, if we round the numbers, dividing 60 by 40.

Over the years, many 12 Step Programs, such as Alcoholics Anonymous, have tried to calculate the best ratio for how they distribute or spend money collected through Seventh Tradition donations or from the sale of literature. Often these A.A. meetings have chosen to use the 60 / 30 / 10 split, where any money they collect beyond the expenses of paying rent and funding a prudent reserve is donated to the local Intergroup Office (60%), then the Regional Office (30%), and then to World Service (10%). This spending plan is very close to the

We propose that the

The

It is important that we start where we are. Reaching the balance point of the

The next aspect of the

These specific percentages and ratios are

Another similar number is called the

**Golden Ratio**and it is equal to 1.618This ratio shows up in the length of your hand to your forearm, or in the logarithmic spiral shape of snail shells, or in the spiral pattern of a hurricane.

This ratio was used in the design of nearly all Greek or Roman architecture and to design the shape of the face in the Mona Lisa painting. The

**Golden Ratio**shows up in the spiral arrangements of seeds in the head of a flower as well as the arrangement of the flower petals. In technology, the shape / length / size of nearly all movie screens, televisions and computer monitors are designed according to a 16:9 "wide screen" aspect ratio--a number close to the**Golden Ratio**.The

**Golden Ratio**number can be found by dividing any two sequential numbers in the Fibonacci sequence. Or very simply by dividing 61.8 by 38.2Even more simply, if we round the numbers, dividing 60 by 40.

Over the years, many 12 Step Programs, such as Alcoholics Anonymous, have tried to calculate the best ratio for how they distribute or spend money collected through Seventh Tradition donations or from the sale of literature. Often these A.A. meetings have chosen to use the 60 / 30 / 10 split, where any money they collect beyond the expenses of paying rent and funding a prudent reserve is donated to the local Intergroup Office (60%), then the Regional Office (30%), and then to World Service (10%). This spending plan is very close to the

**Golden Ratio**. Debtors Anonymous often recommends sending 60% to the local Intergroup, 30% to World Service and 10% to either the GSR fund or the J.H. Scholarship fund.We propose that the

**Golden Ratio**can be applied to one's personal spending plan where 60% of one's income is spent on monthly expenses, 30% is spent toward paying down any debt, and 10% is spent on savings (and eventually investing for the future). After all debt is paid off, one then shifts the 30% over to savings. This means 60% of income is put toward living expenses and 40% is put toward savings (30% plus 10%). Our goal at this point is to have a fully funded prudent reserve. A prudent reserve helps to protect us from taking on new debt if an unexpected emergency arises or if we were to lose our job. Once a fully funded prudent reserve is reached (approximately three to six months of living expenses) we suggest the 40% is then applied toward long term savings such as a retirement account or put toward investing, acquiring assets and building wealth.The

**Golden Ratio**gives us a basic premise, a guiding beacon to utilize with our prosperous spending once we have established an income that covers all of our needs, some of our wants, and we still have enough left over to put into savings.It is important that we start where we are. Reaching the balance point of the

**Golden Ratio**in our finances takes time and steady, consistent effort. If we are not currently saving a portion of our income and have no prudent reserve, we start by committing 1% a month to begin our savings journey. We add 1% more to our savings plan each month to reach 10%. If at any point an emergency comes up, we can pay for that with cash and avoid incurring new debt. If at any time we deplete our prudent reserve, we build it back up before moving to the next part of the ratio.The next aspect of the

**Golden Ratio**focuses on the sequence in which we approach each step of the financial recovery process. The Ratio helps us to prioritize where we need to save or invest the majority of our time & energy in order to build healthy and sustainable financial structure into our lives. The recommended order in which we develop our prosperity is:**1) Get a Job**

2) Thoroughly maximize our Income & Earning

3) Develop a plan for covering our Living Expenses(60% of income)2) Thoroughly maximize our Income & Earning

3) Develop a plan for covering our Living Expenses

**(10% of income)**

4) Build our Prudent Reserve4) Build our Prudent Reserve

**(30% of income)**

5) Pay down any Debt5) Pay down any Debt

**(combine the 10% with the 30% for a total of 40%)**

6) Save for the future6) Save for the future

**(continue at 40%)**

7) Invest and Build Wealth7) Invest and Build Wealth

These specific percentages and ratios are

**NOT**mandatory for any member in Financial UA. The program of FUA respects EACH member's right to spend, save or invest in__manner he or she chooses. It is important that you have the right to choose your own adventure. We recommend working with a Qualified Sponsor through the process of Recovery. We also suggest consulting with a trained professional, such as an Accountant / CPA or Financial Advisor (or both) before beginning your path of investing.__**ANY**

Financial UA, General Service Office, phone (443) 424-8588

841 East Fort Avenue--Box #177, Baltimore Maryland 21230

Email: FinancialUA@gmail.com

841 East Fort Avenue--Box #177, Baltimore Maryland 21230

Email: FinancialUA@gmail.com