Struggling with money? Learn 7 simple money rules—like the 50/30/20 budget and Rule of 72—to build wealth, avoid debt, and retire confidently. Plus, free tools to automate your success!

Introduction

Let’s be real: nobody taught us how to handle money in school. At 19, I thought “financial planning” meant hoping my paycheck lasted until Friday. Spoiler: it didn’t. But after years of trial and error (and so many ramen dinners), I stumbled on 7 money rules that changed everything.

These aren’t boring textbook tips—they’re practical, battle-tested strategies to help you save, invest, and avoid the mistakes I made. Even better, I’ll share free tools to make each rule effortless. Let’s dive in!

1. The 50/30/20 Rule: Budget Like a Pro

What it is: Split your income into 3 buckets:

• 50% Needs (rent, groceries, bills).
• 30% Wants (Netflix, travel, that latte you need).
• 20% Goals (savings, debt payoff, investing).

Why it works: It’s flexible but keeps you accountable. No more guilt over treating yourself!

Tool to Try: Automate this with YNAB You Need A Budget, my favorite app for stress-free budgeting.

2. The 4% money rules: Retire Without Running Out of Cash

What it is: Withdraw 4% of your savings yearly in retirement. Example: 

1Msaved=

1Msaved=40k/year ($3,333/month).

Why it works: It balances enjoying retirement with not outliving your money.

Tool to Try: Use Betterment to calculate your retirement number and invest automatically.

3. The 3x-6x Emergency Fund Rule: Sleep Better at Night

What it is: Save 3–6 months’ expenses in a separate account. Use it only for emergencies (think flat tires or ER visits).

Why it works: No more panic-borrowing when life goes sideways.

Tool to Try: Park your fund in a [high-yield savings account from Ally Bank (they offer 4.25% APY—way better than traditional banks).

4. The 2x Investing Rule: Balance Splurges with Smarts

What it is: For every dollar you spend on luxuries (like a $200 dress), invest the same amount.

Why it works: It keeps lifestyle creep in check while growing your wealth.

Tool to Try: Apps like M1 Finance let you invest spare change automatically.

5. The 3x Rent Rule: Avoid Being House-Poor

What it is: Your rent shouldn’t exceed ⅓ of your income. Example: 

3k/monthincome=max

3k/monthincome=max1k rent.

Why it works: Frees up cash for fun and savings.

Tool to Try: Use Zillow Rental Manager to find affordable spots in your area.

6. The 20/4/10 Car Rule: Don’t Get Ripped Off

What it is: When financing a car:

• 20% down payment.
• 4-year max loan term.
• 10% of income on total car costs.

Why it works: Cars lose value fast—this keeps you from overspending.

Tool to Try: Compare loans with AutoGravity for the best rates.

7. The Rule of 72: Double Your Money Effortlessly

What it is: Divide 72 by your investment’s growth rate to see how long it’ll take to double. Example: 10% returns = 7.2 years.

Why it works: It’s a quick hack to see if your investments are working hard enough.

Tool to Try: Read The Simple Path to Wealth for more genius money math.

Conclusion: Start Small, Win Big

You don’t need to tackle all 7 money rules today. Pick one (maybe the 50/30/20 budget?) and use the tools above to automate it. Trust me: Future You will high-five Present You for getting started.

P.S. Want a cheat sheet? Check my free “Mindfulness for financial wellness: Daily Habits for Financial Wellness in 2025” below (no email required—just my gift to you!).