Quote from: X-ray on May 08, 2025, 05:19:42 AM

Quote from: Solosanz on April 29, 2025, 04:02:59 PM

Quote from: Free Market Capitalist on April 29, 2025, 02:10:27 PM

That's good as a general rule but I don't budget any more after more than a decade doing it. I already have a lot of experience in this, I have the big expenses under control and in general at the end of the month I am cash flow positive, I have money left over even though I invest at the beginning of the month. So there has come a time when I have decided to relax a little in that sense. I don't rule out doing it again in the future if necessary, but I don't think so.

For anyone who is just starting to invest, or who is in debt, or who has little net worth, I think it is essential.

Because most of the financial advice are created for middle class to poor.

Like 50/30/20 rule, if someone earn $60K per year in US, it's make sense to use that rule, but if they earn $1.2 M per year, it's not make sense for someone to force themselves use $60K for their monthly needs.

When someone is too rich, there are no rules, even they can buy the rules.

Basically don't be too strict on following these rule, just put whatever we want into investment and call it a day.

We can always estimate our monthly need from previous month spending maybe give a little room for inflation and thats it.

This kind of rule was never meant to be followed too strictly anyway, just a guide.

That's just the basic rule of budgeting. Anyone can create their own rule based on their financial capacity. Budgeting is important so you don't go above your means. When you know how to budget, you won't worry on your future expenses as you have proper allocation on each of them.

As long as you're consistent in your investment, it doesn't matter whether it's big or small. Over time, it will accumulate while its value also increases.