Part 3/10:
This misconception is deliberately perpetuated by the financial industry, which profits from making investment management appear complicated. But, behind the scenes, building wealth is simple enough to explain to a teenager: earn, save, invest, and manage expenses.
Introducing the 156520 Rule
The numbers in the 156520 rule stand for percentages of your income allocated across four key categories:
15% for Your Future Self
65% for Living Expenses
20% for Fun and Flexibility
Think of it as a recipe for financial success—each part has a specific purpose that, when combined, creates a balanced approach to wealth building.