Hey Hey, Good People with Good Money!
The economy is loud now: not just on the scroll of social media, but also including your finances. From talking heads to headlines - everyone is telling you what to do when it comes to your money. And as I’ve been seeing, some of you might be saying “what money?!”. Yeah, I get it. We got the trifecta of stagflation, inflation, and the tariffs - your money isn’t funny right now.
You don’t need another voice online telling you to “just invest.” Especially not when your budget’s already tight, and the cost of living keeps rising. But you need a voice who gets it and is going to tell you my thoughts on another ratio to help you feel like you’re moving your investing needle and still save money. This adds balance when life and the group chats we keep getting put back into keep us unprecedented.
Let me share something I use myself and with clients when things feel shaky:
the 80/20 money move.
You’ve probably heard of 80/20 when it comes to dating and relationships (Millennials - I think that was in the movie “Why Did I Get Married”). It’s simple and it helps keep you grounded:
If you have any extra money (yes, I know - you might not feel you have it, if this is you.. Read this blog post) — or money you were thinking of putting into an investment account — break it down like this:
- 80% should go toward your emergency fund, sinking fund, and paying extra toward your debt.
- 20% can go toward investing through your IRA or brokerage account.
Mind you - before you even get into that split, there’s a step people always skip:
You need to audit your wallet first.
That means getting honest about:
- How much does your life cost right now (not what it used to cost)
- What’s actually in your emergency fund
- What debt is weighing you down
- What you’ve got left after bills, food, transportation, etc.
- Your cash flow and if there’s any room to create more flow (negotiating bills, getting paid more, etc)
This kind of audit helps you stop guessing and start moving from facts, not feelings.
Because here’s what I’m seeing a lot of lately:
People are being told to throw money into investments without being told the truth — you still need a cushion. These layoffs aren’t laying off, friend. And I feel - it’s going ot get louder.
You can’t put all your money in the market and then not be able to pay your rent or keep the lights on. That’s not strategy — that’s stress waiting to happen.
So Why 80% To Save and Pay Down?
Because that’s what gives you some leverage in an emergency. You might not have 3-6 months savings like the people say, but you know that I always charge you to save in tiers - $100, then $500 and then 1 month of your core expenses.
Not vibes. Not hope. Cash. On hand. When you know the value of how much things cost, you can build towards that cushion.
You don’t want to be in a situation where you need to pull from your retirement early or swipe your credit card for a car repair. That’s how folks get stuck in cycles. Been there, talked that.
If you've been paying down debt, take whatever extra you find towards your debt - paying extra towards the interest on the payment you already do. This will compound into paying it off quicker to increase your cash flow.
When you think about it — that 80% bucket is where the peace comes from. Even if you get a windfall, you can build up your savings rate.
Money saved is just as powerful as money invested.
What About The 20%?
That 20% is how you still participate in wealth-building or even wealth creation – without putting your stability on the line. You can still not make a lot of money, but invest in the stock market. You can research funds and then research your wallet to determine how much you can flip into it.
This is where your IRA, brokerage account, ETFs, Fractional Shares, and Index Funds come in. Each of these allows you to buy into stocks, oh, and if you have an HSA via your job.
You’re not trying to time the market. You’re staying consistent, even if it’s $50 at a time.
It adds up, especially when you’ve already protected yourself first. That $50 could easily buy you that ETF or Index Fund you’ve been eyeing or even if that doesn’t handle it - move into buying a fractional share of it or autotransfering into your brokerage account or IRA to build up to buying what you’ve researched.
Quick Reminder:
Your 80/20 might look different depending on your situation.
If things are tight? Maybe it's 90/10 — or even 100/0 for a few months.
And that’s okay. This rule flexes with your reality, not social media pressure.
Mentally, This Rule Does Something Else Too:
It keeps you out of panic mode.
You’re not reacting. You’re planning.
You’re giving yourself space to make moves without burning out or backtracking later.
Before you move your money this month, do the audit.
Then use the 80/20 rule as your financial GPS — especially if you're in a season of uncertainty.
Your money deserves intention, not impulse.
Let’s break this down with a real example:
Let’s say you bring home $4,500 a month. After bills and minimum debt payments, you’ve got $200 left.
Now here’s where the pressure starts:
You might hear people say, “Throw all of that into the stock market!”
But what if something happens next week and you need $350 unexpectedly?
That $200 is now locked away in an account you can’t access without fees or delays.
So instead, you follow the 80/20 rule:
- $160 (80%) goes toward your high-yield savings account or toward paying down credit card debt.
- $40 (20%) gets invested in your Roth IRA or brokerage account — ideally into low-cost ETFs or index funds.
You’re doing both: creating short-term security and building long-term wealth.
This is what financial balance looks like.
Let me ask you this:
Have you ever been in a situation where an extra $200 or $300 would’ve changed everything — but you didn’t have it?
That’s why I’m so focused on people saving first.
Because if you don't have money when you need it?
That’s a kind of stress that investing alone can’t fix.
Here’s what the 80% is really about:
It’s about having leverage.
It’s about giving yourself breathing room.
It’s about saying, “I’ve got options” when life hits you sideways.
The market will always be there.
But your peace of mind? That’s priceless — and it starts with your emergency fund and financial stability.
Now, don’t get it twisted — I’m not saying don’t invest. Implement with more intention.
That 20% matters. You need to be thinking about retirement, wealth building, and getting comfortable with the market.
But make sure you’re not investing because you feel pressured to “keep up.”
Make sure your savings and debt situation isn’t crumbling underneath a shiny Roth IRA deposit.
Build with purpose. Not panic. Not peer pressure.
Want to know how this 80/20 rule fits your budget?
If you’re not sure how to apply it to your own money, I got you.
You can:
- Book an Ask Me Anything Session — real answers tailored to your wallet (30 minutes, 75 minutes)
- Or try the Budget & Cash Flow Blueprint — a service to help you make sense of your spending and saving. Legit, I do your budget for you.
And I’ll be covering this entire process step-by-step in my next workshop:
"Making The Math, Math" — My Budgeting Workshop
Happening at the end of this month (learn more about it here, use the code BUDGETMATH25 to get 20% off until 5/25).
We’ll go through your real numbers, your real goals, and help you build a real plan.
If you’ve been needing clarity, this is it.
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I have a workshop and a digital guide coming! What else do you need?!
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