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1. Pay bills/expenses.
2. Save 3-6 months worth of expenses.
3. Invest the rest.
too much stress to be dealing with %s.
You don’t ever buy non necessities?
Currently in a position to save about 55% of my monthly salary which is insane to me, I don't really spend money often so it works well
Investing - 20% through 401k
Saving - 5%
Spending - 75%, of which 30% is rent
85% investing
“ they must be living at ho… ahhh see” rent is a killer.
I generally try to allocate at least 20% to investments, 10-15% to savings. So I set up an automatic deposit to a high-yield (most are paying crap rn so gotta look into some other savings vehicles soon), and the investment allocation to different assets (stocks, crypto, gold etc.)
Investing ~56%
Spending ~36%
Saving ~8% (whatever’s left)
Still struggling with this personally...
Pro
Spend about $40k. Taxes about $40k. Savings about $90k (all going into investments)
I see saving and investing separately since ROI and timelines of potential use are different. My savings is straight cash. Currently:
21% Investing: 10% 401K, 6% IRA, 5% Brokerage
6% Savings (until I have 2yrs expenses, then will switch to putting into brokerage)
20% Student Loans
The rest are living expenses. For more context, I’m living at home (still split bills and food). I will be following this when married next year as well and have already discussed living below means with significant other. We’ll then attack student loans together and start putting money into real estate.