Summary
Financial literacy is not being taught in school and it’s time for you to learn how to use your money (and store it) properly. In this episode Justin and I dive into how to set up your finances for your future, what happens if you pass unexpectedly, how to be more on top of your net income, the importance of who you marry, and so much more.
Key Takeaways:
- Your finances should be ready to catch you with any potential downfall
- Why you need a beneficiary on your accounts NOW
- You don’t need to buy what other people your age are buying
- Your money story influences your buying behavior
- Your priorities and your financial goals need to align
- How to break down your paycheck appropriately
- Why you need to invest now – and where – and how
What percentage of my paycheck should go to bills, savings, and fun?
Justin’s rule of thumb is the 50/30/20 split: 50% to needs (housing, utilities, groceries, insurance, fixed expenses), 30% to wants (dining out, travel, shopping, entertainment), and 20% to savings or debt paydown — including your emergency fund and retirement contributions. This is all based on after-tax income.
How much should I have in my emergency fund?
For someone on a W-2 job, three to six months of expenses is standard. So if you spend $5,000/month, you’re looking at $15,000–$30,000, kept somewhere liquid like a high-yield savings account, not invested in the market where it could dip when you need it most.
I have a lot of student loan debt — should I stop worrying about investing until it's paid off?
Justin’s take: don’t wait. Look at how debt affects your life 5–20 years out — can it delay buying a house, sending kids to college, or retiring? He frames your own earning potential as your highest-ROI asset, so investing in yourself (skills, certifications, experience) now compounds more than almost anything else, debt or not.
Related Episodes
Ep. 149 What is your paycheck costing you?
Ep. 136 Why more money isn’t the answer
Ep. 107 What to do With Your Money Now That You’re Finally Making Some with Julia Cancro