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Does Budgeting Actually Work?

2024/10/23
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Money Guy Show

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A listener asks about the origin of the 23/3/8 rule. The hosts explain that it's based on real-world experience and designed to help people avoid car payments becoming a financial burden, especially during the early stages of wealth building.
  • The 23/3/8 rule suggests a 20% down payment, a 3-year loan term, and a car payment that's no more than 8% of your gross income.
  • The rule is designed to be a realistic guideline, not a rigid requirement.
  • The hosts emphasize the importance of avoiding excessive car debt, especially when starting your wealth-building journey.

Shownotes Transcript

"Question about budgeting - A few episodes back, Bo mentioned that how he doesn’t do budgeting anymore but cash management. How does that technically work? Just know how much left to spend each month?"
We'll walk you through that question and more in today's Q&A episode! Jump start your journey with our FREE financial resources) Reach your goals faster with our products) Take the relationship to the next level: become a client) Subscribe on YouTube for early access and go beyond the podcast) Connect with us on social media for more content) Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.