# 19 money rules everyone should learn by 25:
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Original URL: https://x.com/KurtisHanni/status/1566054331962597381
Author: Kurtis Hanni
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## Content
## 1 19 money rules everyone should learn by 25: 1. Pay yourself first. As soon as you get paid, put money into savings. Automating this is even better. --- ## 2 2. Keep a 6-month emergency fund. If you have multiple streams of income, you can go as low as 3 months. If starting out on your own, you could need as much as 12 months. --- ## 3 3. Budget using the 50/30/20 rule. • 50% for needs • 30% for wants • 20% towards saving/investing This is the bare minimum! --- ## 4 4. Divide your bonus into thirds: • 1/3 for fun • 1/3 for retirement • 1/3 for debt paydown (add to retirement if only low-interest debt) --- ## 5 5. Put all, or a large percentage, of your raises into saving and investing. This helps avoid lifestyle inflation and moves up your retirement date. --- ## 6 6. Avoid high-interest debt. If you have it, use the avalanche or snowball method to pay it off (google them). --- ## 7 7. Always take an employer 401k match. Many employers will match a percentage of your paycheck. This money is getting an immediate 100% return. If you turn this down, it’s the same as turning down a raise. --- ## 8 8. Your home payment (mortgage, interest, insurance) should cost less than 25% of your monthly income. --- ## 9 9. When buying a car use the 20/4/10 Rule if you have to. • 20% down • 4-year loan • < 10% of your monthly income I still prefer to buy older vehicles with cash, but each to their own. --- ## 10 10. You should save at least 15% of your income for retirement. --- ## 11 11. Your age subtracted from 100 represents the percentage of stocks you should have in your portfolio. Some are now using the number 120. --- ## 12 12. The stock market has a long-term average return of 10%. To calculate your returns, it’s common to use 6-8% to capture the effect of inflation. --- ## 13 13. The rule of 72 to tells you how long it will take your investment to double. Example: The stock market returns 10%, so 72/10 = 7.2 years to double your money. --- ## 14 14. The 4-percent rule says you can safely withdraw 4% of your starting investment balance each year (adjust for inflation in subsequent years) and not run out of money. --- ## 15 15. Your Net Worth should be equal to your age x Pre-Tax Income / 10. Example: if you are 35 years old and $100,000 in annual income, then your net worth should be $350,000 (35 x 100000 / 10). --- ## 16 16. Have at least five times your gross salary in term life insurance. 17. Before spending money, wait 24 hours and ask: do I still want it? If you do, go ahead and buy it. This will save you from a lot of impulse purchases. --- ## 17 18. Save for retirement first, then your children’s education. 19. Value time over money and experience over things. --- ## 18 Thank you for reading. What money rules would you add? Share them in the comments. --- ## 19 If you enjoyed this thread, follow me ( @KurtisHanni ) to get more content like this. Please RT the first tweet to share it with your friends: --- ## 20 Every Thursday I write a newsletter and share 1 framework and 1 financial concept. Subscribe here: http:// kurtishanni.com/newsletter https://t.co/sYZWoKcgpN