Optimal Finance Daily - Financial Independence and Money Advice 3308: Interesting Financial Rules to Follow by J. Money of Budgets Are Sexy on How to Budget Successfully
Oct 6, 2025
Dive into a treasure trove of financial wisdom as J. Money challenges the reliability of common financial rules. He explores budgeting percentages, questioning if sticking to strict guidelines is practical. The discussion delves into home affordability, suggesting that income multiples might mislead buyers. Life insurance advice is scrutinized, alongside innovative approaches to saving for college. Finally, instead of the traditional income-based retirement plan, he advocates for focusing on future expenses, urging a personalized take on finance.
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Use Percentage Buckets As A Benchmark
- Try using percentage-based buckets for spending to benchmark finances over time.
- Track living, discretionary, and savings percentages to spot where to cut or boost.
Bought Well Below Lender Limits
- J. Money compares his new house to the 2–4x income home rule and finds they bought well below the upper end.
- He notes lenders approved much more than they ultimately chose to take on.
Don't Buy To The Bank's Maximum
- Avoid treating lender-approved mortgage amounts as what you can truly afford.
- Base your home decision on sustainable finances, not the maximum loan offered.