How to Save 50% of My Income (50/50 Budget Rule)

Step 8 of our FIRE checklist is to save and invest 50% of our income. Before you get to the 50% savings rate, you need to prioritize your savings and investment. The 50/50 budget rule is to spend 50% of your income and save the other 50%. Increase your savings rate to achieve financial independence.

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⏰ Table of Contents ⏰
0:00 50% Savings Rate Explained
2:38 Prioritize Savings & Investment
7:35 Cash Reserve
9:27 Road to 50%

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Disclaimer: I am not a financial advisor. I am solely sharing my personal experience and opinions. All Strategies, tips, suggestions, and recommendations shared are solely for entertainment and educational purposes only. There are financial risks associated with investing. You must conduct your own research and due diligence, or seek the advice of a licensed advisor if necessary.

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[cramsa]

40-50% gross savings is the NORM in places like China and Singapore and even Northern Europe.

[DavidRamseyIII]

I’ve just gotten to saving 50% after years of spending everything. But I assume the savings rate should be much higher on a large household income?

[favoredlife]

Congratulations on your wedding! I don't why I thought you were married already.