more like 5% goes towards expenses and 95% goes into crypto
Personal finance - budgeting
Angel Mitchell
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..)
Thomas Williams
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.
Adrian Wright
>spending money on anything ever
Owen Price
This guy gets it
Gabriel Wilson
This, but unironically
Luke Fisher
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.