How To Manage Your Money Like The Top 1% (The 60/30/10 Rule)

In this video, we talk about one of the personal finance rules of money management that even the wealthy will use. This is called the 60/30/10 rule and it's an updated version of the 50/30/20 because personally, I think the 50/30/20 rule is dead with most Americans dealing with higher costs of living. However, even though the rule has changed a little bit, I show you with math that we can still get to financial independence, and ultimately try to earn our way into the top 1%

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WHO AM I?
Hello 👋 I’m Humphrey, I used to be a financial advisor, worked in gaming/tech, and started my own eCommerce business. I make practical, rational content on investing, personal finance, the news, and much more with a data-backed approach. My goal is to help you with financial literacy and creating wealth.

PS: I am no longer a current Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel!

⏱️ Timestamps:
0:00 - Start Here
0:33 - The 50/30/20 Rule Is Outdated
2:51 - Introducing the 60/30/10 & Needs
5:35 - Wants
7:00 - Why 10% Is Still Sufficient
10:13 - Habits of the Wealthy

[Mathew-zsnz]

One lesson I've learned from millionaires is to always put your money to work, no matter how small. Even investing $100 per month can compound to tremendous wealth over decades. The key is to keep going!

[LarsBergstrom-uheu]

It's sad how difficult things have become in this recessive economy. I was wondering how to utilize some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to protect my $150K-worth stock portfolio from decline, but haven't figured which way to go.

[DonaldMark-nese]

Transfer of wealth usually occur during market crash, so the more stocks drop, the more I buy, in the meanwhile I'm just focused on making better investments and earning more as recession fear increases, apparently there are strategies to 3x gains in this present market cos I read of someone that pulled a profit of $350k within 6months, and it would really help if you could make a video covering these strategies.

[jerrycampbell-utyf]

Newbies need to learn the ropes, know how much risk they can handle and diversify their portfolio. Some folks get help from money experts or do their homework before making investment moves. It's all about being smart with your funds.

[sumitmondal]

Clearly Kardden was a right choice. Hope to learn more from you this is pure knowledge

[DennisJack-kmho]

My main worry is how to increase my $240k reserve, which has been sitting idle for a very long time with little to no profits. I understand the long-term strategy, but my savings are being eaten up by inflation, and my portfolio is losing value every day. I need to find a solution.

[boredoreos]

Mine is 30-5-65. Wife and I are very frugal and still drive around our beater 15 year old Honda and Subaru.

[chaz]

I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Charlotte Miller.

[DragonSlayer]

I think 60/20/20 makes more sense. If you want to afford more wants, find a way to increase your income

[RAHEMAN-GAMING]

All guys stacking Kardden Token before next bull are smart apes for sure

[KarenLavia]

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

[ifhcbeq]

You are right. Dining out is a 'WANT', not a need. I occasionally dine out and I pay 12% taxes and 18% tips, so if I eat a bowl of ramen for $20 then I will be paying $27. That is so so not worth it.

[jyvfquf]

The Kardden KRN will overtake doge and SHIB so easy

[Agent]

A big problem people have with budgeting their "needs" vs their "wants" is how they handle food. Eating out or buying prepared foods is a significant way to blow up your budget if you are lower income. I got in the habit of separating "groceries" from "entertainment" and putting any prepared foods including from the grocery store in the entertainment category and my habits changes very quickly.

[realitywhatsthat]

If you're an employee of a large enough company (one that offers a 401k), you can easily automate at least a 6% savings investment right away. Typically they'll offer a match, which makes it a no-brainer. The sooner you can make this the default, the better. I started increasing it by just one percent each year, and I'm now at 17% of my income invested into my 401(k) and I don't feel the "hit" at all because it's been steadily increasing over the years. I would say I started late, I just turned 39, but it's comforting to know that in 8 years I'll be saving a full 25% of my earned income, tax-free, and those returns will be tax-free.

[Jason-lclp]

I do 40/20/40. 40 needs, 20 wants, 40 invested/cash savings. I am single, I live in a 1 bedroom in a Midwest suburb. My apartment is the perfect size, I cook at home and meal prep with rice or pasta, veggies plus a fish or chick (beef tacos occasionally), and once a month I might order pizza. With a small apartment my heating and cooling is low. I have a paid for car I try to keep in the best condition (15 years so far.) I put a lot into saving and investments because I am 46 and I want to pack in as much as I can now so it can compound and reach financial independents by 60 and at that point I can choose to stay at my current jobs (if I am still here) or I can try something new without the financial worry. I'm also a homebody so If I do spend it is on my hobbies; gaming, drawing, playing guitar. I can see this switching to 60/30/10 as I get closer to 60.

[EdwinBoettcher]

To keep things simple, my spouse and I simply follow the 4% rule. Save enough money so that, when you retire, 4% of your entire savings will cover your living expenses. For instance, if you have $1 million, you can take out $40k annually (with most investments paying dividends of roughly half that amount).
It's a straightforward guideline, and we only calculate what we save for ourselves—we don't bother figuring out things like Social Security. If we require that, we view it as "extra" rather than absolutely necessary.

[kortyEdna]

I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement, I'm 55.

[Thedonron]

34 currently living a 35% (Needs) 15% (Wants) and 50% (Savings/Investing), six figure income no kids not married FI/RE by 38-40.

[fedvvvv]

Investing 10% of your income will get you nowhere unless you have 40 years ahead of you. My ratio is 40% needs, 10% wants and 50% saving and investing. With a more aggressive investing strategy, I'll quickly increase my income and will slowly lower the ratio as I see fit.