How To Manage Your Money (50/30/20 Rule)

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In this video I present a high level overview on how to manage your money using the 50/30/20 Rule.

Money management is 90% discipline and 10% knowledge. The 50/30/20 rule will force you to create a budget and understand where every single one of your after-tax dollars is going.

50% of your budget should be spent on needs which are are things that are essential to life and that you literally cannot live without.

30% should be spent on wants which could be classified as things that bring you joy and happiness, but are NOT essential to living. (Dining out, entertainment, hobbies, etc.)
The final 20% should be spent on savings, paying off debt, and retirement planning.

I feel like a lot of people confuse wants for needs, and we know the difference deep down, but we really want the one that we don’t have the self-discipline to say no.

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ABOUT ME 👇

My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.

This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort in every video that I make. I also believe in complete transparency and open communication with my audience.

DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.

Comments

Marko - WhiteBoard Finance says:

Do you have a monthly budget?

Daniel Vargo says:

What DO YOU KNOW ABOUT TAX LIENS OR AND NOTE INVESTING???

MindGrit by Dr. Rey Fremista says:

Leave a like for 10 years good luck in youtube

MindGrit by Dr. Rey Fremista says:

Whoever is reading this I hope you will have a successful and meaningful 2019!

Heart of Space says:

I spend 95% my money on yoloing on stocks

Sudhesh Sankar KK says:

Thank you thank you thank you for sharing 🙏🙏🙏

jacob2197 says:

What was the lesson here? I must’ve missed it. Don’t let the Want+saving> than Need ??

ltnleo31 says:

U lost me at “my wife “ hahahahaha

無理だぞ says:

investing most of your money in the stock market, living with parents, and not dating/not having a gf/wife is the best financial life.

Ren Puppy Paws says:

My needs is more than 50%

WeAreDales Family says:

I put 20% of my salary to my 401k, does that sounds good or should it be really into savings?

Solo94 says:

Thanks for the vid Marko! I get paid weekly so would I apply the 50/30/20 rule weekly or monthly? Thanks! I subbed. 🤘🏼

Rieke Matteffy says:

Marko, could you do a video for self-employed people whose income varies from month to month and year to year and who have to make quarterly tax payments?

Ian flem says:

Thanks Marko

OliPrimOxx97 says:

Health insurance in the budget made me laugh in canadian , like god forbid something happens, here you'd be able to financially live after that.

El Indigeno says:

I like this! 50/30/20 is from a book I read "Money Diaries."

Niels van den Eng says:

How I look at my budget instead of what most people do: I spend what i have left after saving, not save what I have left after spending. This got me to €18k saved as a 20 year old student!

Mr. Marian says:

It's bullshit. It should be: 40% needs, 50% investing, 10% wants.

John Plater says:

How do you save 6 months of expenses when you are living check to check?

Nan Yang says:

Great channel! I need to watch more of your videos for financial advice!

JustAGuy OnYoutube!4K says:

Sumbitch 🤡

Jermaine Blalock says:

Great content. Thank you very much

Connie Montenegro says:

Good one Marko. with your help, last month i was able to manage 60% of my salary and comfortable invest the rest 40& in the forex market. keep up with the good works 👍🏻

Fabricio Novak says:

Where does your 401k fit, as it is pre-tax and this method deals with your net income? Should I add it to the 20% Should an HSA account be in the 20% bucket too?

Scott Smeltz says:

Seems to me a car is part need and part want. We need transportation to get to work, etc. We do not need a cool sports car. How do you suggest splitting the cost between the two categories?

Iraj Matthee says:

If people are encouraged by experts to save 10% of their net income towards their savings or investments and contribute at least 15% for retirement, then it would be the 25-25-50 plan or the 25-30-45 plan to be more accurate.

Zheng Paul says:

It is very easy to mix up the wants and needs sections. Having some form of delayed gratification is key in savings and budgeting.

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