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1 min read Tip

Money Tip: The 55/20/25 Rule

Stop asking “How much should I invest?” The smarter move is to set up a system that runs automatically. Here’s the simple 55/20/25 rule that makes money stress-free.
Dark navy graphic with text “Money Tip: Stop asking ‘How much should I invest?’ Ask THIS instead..” above a pile of dollar bills.
Money Tip: Stop asking “How much should I invest?” and start asking the right question.

Most people waste time stressing over “How much should I invest each month?”
Wrong question.

The right one is: “Do I have a system that works automatically?”

Here’s a dead-simple one that works:

The 55/20/25 Rule

  • 55% → Needs (housing, food, insurance, bills)
  • 20% → Investing (retirement accounts, brokerage, long-term growth)
  • 25% → Discretionary (travel, hobbies, fun)

Example: If you bring in $5,000 a month, that breaks down to $2,750 for needs, $1,000 for investing, and $1,250 for discretionary spending.

Don’t overthink it. Build your safety net, follow this split, and automate the transfers.

Simple. Repeatable. Stress-free. That’s how you build wealth.

Disclaimer: This content is for informational and educational purposes only. It does not constitute financial, investment, tax, or legal advice. The opinions expressed are solely my own, based on my analysis and investing style, and may not reflect the views of any third party. All financial figures, metrics, and references are based on publicly available sources believed to be reliable, but accuracy is not guaranteed. Investing in securities involves risk, including possible loss of principal. Past performance is not indicative of future results. Always do your own due diligence or consult a licensed financial advisor before making investment decisions.

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