💰The 75% limit: Only spend 75% of your income and look for cheaper alternatives to save more.
💰The 10% rule: Save at least 10% of your income for emergencies and build a cushion fund.
💰The 15% rule: Invest at least 15% of your income for future wealth and financial independence.
How much should I spend if I earn $10,000?
—You should spend a maximum of $7,500 (75%) and save $1,000 (10%) for emergencies, and invest $1,500 (15%) for your future.
What is a cushion fund?
—A cushion fund is a cash reserve specifically set aside for financial emergencies.
Where should I store my cushion fund?
—It is recommended to store your cushion fund in a high yield savings account for better interest rates.
How do I determine the amount for my cushion fund?
—Calculate your monthly expenses and multiply it by 5 to determine the amount you need in your cushion fund.
What should I invest in for the 15% rule?
—Invest in index funds or ETFs for diversification and long-term growth.
00:00Learn how to manage your money like the 1% with the 75/10/15 rule.
02:36The 75% limit: Only spend 75% of your income and look for cheaper alternatives to save more.
03:49The 10% rule: Save at least 10% of your income for emergencies and build a cushion fund.
05:30The 15% rule: Invest at least 15% of your income for future wealth and financial independence.
