1
19 money rules everyone should learn by 25:
- Pay yourself first. As soon as you get paid, put money into savings. Automating this is even better.
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
- Budget using the 50/30/20 rule.
• 50% for needs
• 30% for wants
• 20% towards saving/investing
This is the bare minimum!
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
- 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
- Avoid high-interest debt. If you have it, use the avalanche or snowball method to pay it off (google them).
7
- Always take an employer 401k match.
Many employers will match a percentage of your paycheck.
Doing well in some ways. Not so great in others. Helps me think about the next phase of getting my financial house in order. Sep 3, 2022