The Personal Finance Podcast How to Manage Money Like the Top 1%
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Jan 22, 2025 Discover strategies to manage money like the top 1% by mastering wealth retention with the 20-55 rule. Learn essential budgeting techniques and the importance of emergency funds for long-term success. Explore effective methods for investing through health savings accounts and 401(k) plans. Delve into the psychology of impulse spending and how upbringing influences financial habits. Finally, embrace intentional discretionary spending to enhance personal happiness and enrich your life through meaningful experiences.
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Prioritize Future You
- Allocate 20% of your income towards future you, including emergency funds and investments.
- Increase this by 1% every few months if 20% isn't immediately feasible.
Emergency Fund
- Build an emergency fund: Start with one month's expenses, pay off high-interest debt, then increase it to three, then six months' worth.
- This protects you against job loss, unexpected expenses, and allows for wealth building.
Smart Investing
- Invest in a Health Savings Account (HSA), Roth IRA, and 401k, in that order.
- Use index funds and ETFs within these accounts.