7 money rules to go from jiggle jiggle to fold:
50/30/20 Budget Rule
Allocate your income to these buckets:
50% Needs
• Housing
• Food
• Transportation
• Basic Utilities
• Insurance
30% Wants
• Entertainment
• Travel
• Fashion/Gear
20% Savings
• Debt payments
• Emergency fund
• Retirement
• Investments
Allocate your income to these buckets:
50% Needs
• Housing
• Food
• Transportation
• Basic Utilities
• Insurance
30% Wants
• Entertainment
• Travel
• Fashion/Gear
20% Savings
• Debt payments
• Emergency fund
• Retirement
• Investments
Avalanche Method (for Paying Off Debt)
Two main strategies to become debt-free:
Snowball Method
• Pay off the smallest loans first
Avalanche Method
• Pay off high-interest debts first
Snowball can be motivating, but Avalanche saves more money in the long run.
(Image: CRCU)
Two main strategies to become debt-free:
Snowball Method
• Pay off the smallest loans first
Avalanche Method
• Pay off high-interest debts first
Snowball can be motivating, but Avalanche saves more money in the long run.
(Image: CRCU)
1% Rule for Impulse Buys
Use the 1% Rule to curb impulse buys.
If the item is over 1% of your annual gross income, wait 3 days.
If you still want the item after 3 days, get it.
Why this works:
You’ll often realize you don’t actually want/need that thing.
Use the 1% Rule to curb impulse buys.
If the item is over 1% of your annual gross income, wait 3 days.
If you still want the item after 3 days, get it.
Why this works:
You’ll often realize you don’t actually want/need that thing.
The Rule of 72
Get excited about saving.
Use the Rule of 72 to quickly calculate how many years it will take to double your money.
(Divide 72 by the interest rate)
Example:
• 8% investment return = Double your money every 9 yrs
Get excited about saving.
Use the Rule of 72 to quickly calculate how many years it will take to double your money.
(Divide 72 by the interest rate)
Example:
• 8% investment return = Double your money every 9 yrs
3X Emergency Fund Rule
Keep 3-6X your monthly income in an emergency fund.
When a rainy day comes, you’ll weather that storm.
(I learned this rule from my friend, @AccentInvesting.)
Keep 3-6X your monthly income in an emergency fund.
When a rainy day comes, you’ll weather that storm.
(I learned this rule from my friend, @AccentInvesting.)
The Rule of Automation
Defaults are powerful because people are lazy.
So make savings your default by automating it.
I highly recommend the book “I Will Teach You to Be Rich” @ramit
Lessons:
• Save and invest money before you ever see it
• Create an automated money system
Defaults are powerful because people are lazy.
So make savings your default by automating it.
I highly recommend the book “I Will Teach You to Be Rich” @ramit
Lessons:
• Save and invest money before you ever see it
• Create an automated money system
Item in, Item Out Rule
If you purchase one item, then donate, toss, or sell another.
Minimalism is a dual discipline:
Manage both inbound and outbound possessions to enjoy equilibrium.
If you purchase one item, then donate, toss, or sell another.
Minimalism is a dual discipline:
Manage both inbound and outbound possessions to enjoy equilibrium.
TL;DR Money-Saving Tips
1. 50/30/20 Rule
2. Avalanche Method
3. 1% Rule for Impulse Buys
4. The Rule of 72
5. 3X Emergency Fund Rule
6. The Rule of Automation
7. Item in, Item Out Rule
1. 50/30/20 Rule
2. Avalanche Method
3. 1% Rule for Impulse Buys
4. The Rule of 72
5. 3X Emergency Fund Rule
6. The Rule of Automation
7. Item in, Item Out Rule
Disclaimer: I am not a financial advisor. The content of this thread is for educational purposes only (and simply reflects my opinion). Do your own research and consult a licensed financial advisor ✌️
There you have it! 7 tips to make saving...feel less like saving 🥂
Post title inspired by “My Money Don’t Jiggle Jiggle, It Folds” by Louis Theroux.
Here’s that to enjoy:
youtube.com
Post title inspired by “My Money Don’t Jiggle Jiggle, It Folds” by Louis Theroux.
Here’s that to enjoy:
youtube.com
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