💼 Personal Finance

Before investing or paying down low-interest debt, save 3–6 months of essential expenses. This buffer protects you from selling investments at a loss or going into high-interest debt when life happens — job loss, medical bills, or unexpected repairs.

50% of after-tax income for needs (rent, food, utilities), 30% for wants (entertainment, dining out), 20% for savings and debt repayment. It is a starting point, not a rigid rule — adjust based on your situation. The key is having a system.

Time in the market beats timing the market. A globally diversified ETF (e.g. iShares Core MSCI World, Vanguard FTSE All-World) with a 0.20% expense ratio is enough for most people. Automate monthly contributions and ignore short-term volatility.

A mortgage is just the start. Property tax, insurance, maintenance (rule of thumb: 1–2% of home value per year), HOA fees, and closing costs add up. Compare total cost to renting plus investing the difference before deciding.

In most countries, retirement accounts offer tax benefits — either tax deductions now (traditional) or tax-free growth (Roth/private pensions). Maximize employer matches first (free money), then fill tax-advantaged space before taxable accounts.

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