The '3 Pocket Rule'

Finding a rule or system that works best for your own financial needs is important because it helps you stay organized and efficient in managing your finances, and in turn managing your life.

Everyone has different habits, preferences, and lifestyles, so what works for one person may not work for another.

By customizing a rule or system to fit your specific financial needs, you are more likely to stick with it and experience the benefits it offers.

I use  what I call my 3-pocket rule which i’ve shared with clients, family and friends.

As women, we often try to hold the financial burden on our shoulders. Do you feel like you’re always broke and living from one day to the next? If so, you're not alone.

Many women face this ongoing cycle of financial struggle, making it difficult to invest in their future and achieve financial stability. But there’s a simple solution that can help break this cycle—the 3-Pocket Rule.

The 3-Pocket Rule is a powerful method for managing your money, ensuring you cover your immediate needs while also planning for the future. Here’s how it works:

First, split your income into three categories: living, giving, and investing.

1. Living Expenses (50%)
Allocate 50% of your income for your living expenses. This includes rent or mortgage, utilities, groceries, transportation, and other essential day-to-day costs. By setting this limit, you ensure that you’re not overspending on your immediate needs.

2. Investing (30%)
Dedicate 30% of your income to investing in your future. This can be through savings accounts, retirement funds, stocks, or any other investment vehicles that will help grow your wealth over time. This pocket is crucial for building financial security and independence.

3. Giving or Saving (20%)
Use the remaining 20% for giving or saving. This could mean supporting charitable causes, helping family and friends, or simply adding to your emergency fund. This pocket allows you to contribute to others while also ensuring you have a safety net for unexpected expenses.

By following the 3-Pocket Rule, you can manage your finances more effectively, reducing the stress of living paycheck to paycheck. It helps you strike a balance between covering your current expenses, investing in your future, and supporting those around you. Start implementing this rule today and take the first step towards financial stability and independence.

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