AAR67 - Our Ratio Rulebook - Solid Financial Starting Points

Are you spending too much on your car? Is your rent making you "house poor"? In this episode of At Any Rate, Evan and Andrew ditch the vague financial advice and dive into the exact ratios and percentages you should be aiming for to secure your financial future.

From breaking down the classic 50/30/20 budgeting rule (and why it must be calculated on your net income) to establishing hard limits for vehicle expenses, housing costs, and "fun money," the guys provide a blueprint for evaluating your spending. Plus, they explore how to handle windfalls and the right way to size "risky" investments in your portfolio.

What You Will Learn

The 50/30/20 Rule: How to properly categorize your needs, wants, and savings without feeling restricted.

The 15% Vehicle Limit: Why you must include gas, insurance, and maintenance when calculating your car affordability.

The 30% Housing Limit: The financial superpower of buying a "starter home" instead of stretching for a dream home immediately.

Net vs. Gross Savings: Why you shouldn't include your employer 401(k) match when calculating your personal 20% savings rate.

The 50/50 Windfall Rule: A guilt-free system for splitting bonuses and tax refunds between treating yourself and building wealth.

Portfolio Risk Management: Why it's okay to own highly volatile stocks—as long as you size them correctly.

Timestamps

02:04 – Andrew’s favorite investing metric: Calculating Expected Returns

05:42 – The 50/30/20 Budgeting Rule: Needs, Wants, and Savings