THE 50/30/20
ARCHITECT
Don't save what is left after spending. Spend what is left after saving.
Financial freedom is not about how much you make; it is about your Allocation Ratio. Most people operate on a 90/10/0 ratio (90% Needs, 10% Wants, 0% Savings). This is why they are broke.
Senator Elizabeth Warren popularized the 50/30/20 Rule. It is the "Golden Ratio" of personal finance. We built a tool to calculate yours instantly.
NEEDS (50%)
$0
Rent, Food, Utilities
WANTS (30%)
$0
Dining, Netflix, Trips
SAVINGS (20%)
$0
Investing, Debt Payoff
Where to Put the 20%?
Saving cash is losing money (due to inflation). You must deploy capital. Refer to our asset allocation guide in [LINK TO 'COMPOUND INTEREST' POST].
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