The greater the percent of your income you save and invest, the sooner you’ll have F-You Money.
Try saving and investing 50% of your income. With no debt, this is perfectly doable.
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The popular 50/30/20 rule states that you should reserve 50 percent of your budget for essentials like rent and food, 30 percent for discretionary spending, and 20 percent for savings.
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Most people think of generating passive income as something that requires little or no effort. While this can be true in some cases, you’ll only be able to make a decent amount of money if you invest.
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Under this method, 50 percent goes to expenses, 30 percent goes to wants, and 20 percent goes to a combination of debt and savings.
A person with a healthy amount of disposable income but loads of debt could probably benefit more from the 50:30:20 method.
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