I’ll be explaining my interpretation of the 3 6 9 rule of money here at The Professional Freedom Expert.
What Is The 3 6 9 Rule Of Money?
The 3 6 9 rule of money has a theme of saving and playing with numbers. Depending on who you’re getting your message from, they’ll tell you it means to save each amount‘s monthly value of your earnings as a safety net. The other is to invest 6% of your income and give 9%.
How effective does the 3 6 9 rule seem?
The 369 rule seems effective for a beginner.
It can still work also on a more professional level, but it’s a fin foundation excuse me if anything same as anything.
There are fundamentals that you typically will follow and most of the time these fundamentals end up serving as the most reliable method throughout the entirety of whatever career that you’re starting.
But in the sense of finances and in this case, savings, that rule could change as the value of things fluctuate, whether it goes up or down.
In this case, it seems to work really well, especially for anyone in my generation.
I’m in the lower half of millennials so I’m on the younger side of my generation, but from the younger end of millennials moving all the way down to everyone else, it would be highly effective.
It gets you started. You could think of it even as a entry level savings strategy.
That can be changed as you get more comfortable with the money:
- that you’re earning
- how much you’re putting away
You might end up finding that your expenses to live are lower than whatever you’re spending normally and you’re going to find out, “hey, I don’t need to use this much money” or “I’m gonna need more,” “This is too much that I’m putting away.”
And you’re gonna make that adjustment until you feel generally comfortable with whatever it is that you’re putting away or spending at this point, but the 369 rule is a great starter for anybody that is just trying to become financially literate.
What should I do if I’m stuck on the first leg of this rule?
If you’re stuck on the first leg of this rule, it’ll be best to develop a savings plan that logically works for whatever your situation is.
One of the best is to take a portion of that income and compound whatever the percentages and make it even less just to where the point you don’t notice as much that you are putting money away.
So what this does is continually save for you while not breaking your bank.
You’re going to continue to be operating at a deficit while also saving and putting more money away for whatever you’re future expenses may be, but it’s a habit that you’re building.
You have to actively work towards saving in this sense and it’s something that early on you’re going to build upon and continue to develop until it is exactly what I’m saying.
I have it same as going to the gym where your muscles won’t end up huge after one day of working out.
You have to continually do whatever the workout is that you’re playing on doing and let those work out compound and eventually create a final product that you’re happy with but that is the point to get a plan that works for you.
The 369 rule might not necessarily be your ideal method depending on how you’re making your money how often it comes in or whatever it is it is generally safe since most people are recommending that you only take no more than 10% of what you are living off of and doing something with it.
But that might not be ideal for you. You might have to do something that’s a little different.
An example of mine is where I might take 30% off rip and just put that in a savings without touching it at all.
And then when I find another savings plan, I will employ that to what I took off the net earnings that I accumulated and apply it to that savings.
So at that point, I’m actively saving on another level.
I already have a savings that I am in theory creating another savings from but that’s how I do things.
You might have a different method, but it’s being flexible.
You’re going to find a way to have some sort of plan work for you the 369 should be foundational if anything, just a base, something that you can start off from and get an idea on how well this works.
You might have to do it to a T for your very first attempt and get an experience for seeing if it’ll try.
It won’t be something that will set you back to where you’re not going to be able to come back from it.
But you’re going to get an idea for what helps you feel best.
And that’s really what money is in that sense, where if you’re feeling good about whatever financial decisions you’re doing, you’re gonna continue to do it and it will just either promote you or expose you as time passes by.
What type of income does this rule complement best?
The type of income that this rule complements best would be someone that is earning from a business lens.
What does a business lens look like you might ask it’s something that will continue to serve you with or without your efforts so you will be earning in your sleep when you are operating off of business.
You will have others that are serving you and helping grow your operation when you are working through a business.
This rule complements it best because you are putting effort in all throughout your tenure of whatever the business is or your career and from that you will be making saving part of your actual work so being financially responsible is going to be one of your expectations at this point so this rule is going to be best because you’re going to have that part of your expectations or responsibilities.
And from there, you’re also going to learn to be qualified in being competent here.
Final Thoughts
The 3 6 9 rule is a savings tactic in totality. It varies depending on who you get the message from.
It can safely be assumed to be a foundational rule for learning financial literacy.