so Jow Forums you have probably heard about the 10-20-30-40 rule of managing your personal finances
But as I looked into it and did some google-fu it seems like different sources are pretty inconsistent in what those numbers actually represent.
>10% of your income should go to your emergency saving (eg in case your car breaks down etc, .. some say this should be given to charity) >20% should be your investment into various assets >30% should go to your housing (other say this should also include your living expenses like food, health etc) >40% is generally agreed to be spend on luxuries (some also include all kinds of loans here while other say loans should be already include in the 20% of you rinvestments)
So in the end it seems like pople agree 10-20-30-40 is a good rule but nobody seems to agree on what the rule actually means.
So in your opinion how should one diversify their income?
I'm a nigger, so I spend 100% of my welfare check on groceries, which I then sell on the sidewalk for cash so that I can buy newports, malt, and crack cocaine. When I run out of money by the 2nd week of the month, I leech off my family and baby momma's, subsisting mostly on corn chips, macaroni and cheese, and mcdonalds dollar menu.
Don’t forget to pay your tithe to the insurance company, goy. Just look at this chart which contains the diversity we know you crave.
Hunter Moore
there is a nigger in the graph
Jaxon Young
>40% is generally agreed to be spend on luxuries this is nigger tier thinking in general, this part especially i go with the 1-10% rule yearly spendings with everything included should be between 1 and 10% of my networth, ideally closer to 1 than 10
Hudson Adams
I used the pic only as an example dont take it seriously.. even I dont agree with it
that being said though insurances are generally a good thing. I mean if youre not a complete idiot who pays shitloads on insurances he doesnt really need.
the 40% is calculated from your income. Not your networth.
why not just put away money in your account as insurance, you at least can guarantee that there will be some amount there.
Buying insurance is 100% retarded.
Easton Lopez
I'm roughly like this : >35% food, bills, rent >5-10% luxuries >55+% savings However as I'm buying properties it will be >30% loan >15% food and bills >5-10% luxuries >45+% savings
Angel Mitchell
more like 5% goes towards expenses and 95% goes into crypto
Benjamin Torres
let me rephrase the previous post: 1) it's asinine to plan your spending based on income. your reference point should be networth and your networth should be growing from year to year 2) it's beyond retarded to spend 40% of your income in luxuries
Aaron Walker
>10-20-30-40
I swear the numbers change every time I see someone post some sort of "rule" about managing your finances.
Jace Thomas
because you never know when you will need the money.
example: you get your house covered by insurance in case of floods (because you live in a place where floods are p[ossible) but you dont know when the flood hits. It could be in 2 months or in 20 years. If you wanted to save the money yourself, it might take you lets say 4 years. What do you do if the flood hits next year? If youre insured, you get it covered. On the other hadn, you can be paying the insurance for 10 years and no flood comes youre basically paying for nothing.
as with everything in the finance world - its about finding the right balance between risk and profit. You dont need to have an insurance if youre pretty sure you can cover the expenses by yourself when the shit hits the fan. I agree with that.
well, thats the point of this thread if can give some tips and rules for planning your spending based on whatever you think its better (be it networth or income) feel free to contribute to the discussion. Im not claiming I have the ultimate guide. Im asking for advice here.
yeah.. another very popular is 20/30/50 20 - savings/investment 30 - luxurues 50 - expenses (housing, foot, transport..)
In the land of the free, most insurance is mandated.
Example: found a great deal on a comfy starter home recently. Almost put in an offer until I learned that some federal mandate requires I purchase flood insurance because there's a tiny stream in the backyard. Flood insurance was like 400/month. FML
Isaiah Scott
>55% expenses >45% loans (to pay for financial goals) >plus ausfag so 10% of salary is automatically invested for retirement anyway.
Insurance will cover extreme costs that run into the tens or hundreds of thousands of dollars. If a tragedy were to occur such as a vehicle accident where people died and you were found negligent or partially negligent it could end your life financially.
Bentley Howard
It wont because the insurance company will fuck you over 100% of the time. You will get nothing but layer bills.
Evan White
You feed an industry that sustains itself by making people fearful. Dumb goy, just think about what could happen!
Joshua Lee
>10% of income on fucking insuance holy fuck, I hope nobody is really this cucked
Jose Taylor
Who is this autist practicing his smile?
Easton Edwards
>40% on loans jesus. I absolutely do no understand how poor people live. it just escapes me.
Landon Wright
I'm 95% in crypto
Matthew Miller
$0 debt here. I can either afford something outright or I cannot.
Hunter Roberts
99% crypto 1% fiat 0% despair
Jaxson Torres
If you dont save at least 90% of your income, youre a retarded subhuman
Henry Russell
I've been in situations where insurance saved my ass. Not saying insurance isn't a scummy industry but I was responding to a comment that said I stance is stupid 100% of the time.
Thomas Gonzalez
pics or did not happen, show us the payout of the insurer
Jordan Fisher
This. >Live with parents >Make 85K last year >2K on student loans >1.5K on clothes, luxurys >17K on taxes >61K invested
Juan Bailey
To be honest, I spend about half of my income in rent, gas, electricity, water... I save about 10% in the bank. The rest goes into groceries, cafeteria and girlfriend. I'm a bitter no coiner and the pennies left over will be going into crypto.
Luke Garcia
The rules are for the poorest of plebs. For anyone who's not a pleb saving/investing 70%+ of your income is easily feasible.
Daniel Russell
>spend less than 40% on loans dumbass if you have loans spend 100% on repaying them unless you're sam hyde
