Codie SanchezFounder @ Contrarian Thinking

The 50-20-30 Rule

11 Dec 2024 · 1 min

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This content was created by Codie Sanchez. This content was uploaded by Codie Sanchez. This is a YouTube video titled "The 50-20-30 Rule" created on December 11, 2024, featuring Codie Sanchez explaining a financial strategy learned on Wall Street to manage spending and savings effectively, dividing expenses into necessities, future savings, and discretionary spending.

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The 50, 20, 30 rule. The rule I learned on Wall street to help you make more money and save a ton. This is called 50% foundation. 50% of your spending should be the bare necessity. Stuff you absolutely can't live without. We're talking about the roof over your head. We're talking about keeping the lights on. We're talking about fuel for your body, getting your ass to work. This is your survival mode. If something hits the fan, you should be able to scrape by on this 50%. Then we've got the 20% or what I called the future you fund. At least 20% of the rest of your costs go straight to future you. Not negotiable. This means maxing out your 401k. This means building out your savings account or your FU fund. When life throws curveballs at you, you're ready. Next step, 30%. This is your fun money or the fun fund. But here's where you need to be. Strict maximum of 30%. This is for things like that new gadget that you want. Going out on a night with friends. This is for your Netflix addiction. It's about enjoying life without sabotaging your financial future. The goal isn't just to survive. It's to thrive. And the rule lets you do that.