ilmscore | 10 Money Moves You MUST Make Before You Turn 40

10 Money Moves You MUST Make Before You Turn 40

Published: 2025-05-01
Status: Available | Analyzed

Predictions from this Video

Total: 9
Correct: 0
Incorrect: 0
Pending: 9
Unrated: 0
Prediction
Topic
Status
To retire comfortably and live off $40,000 per year, one would need $1 million saved, assuming a 4% withdrawal rate.
"Well, in order for you to retire, you want this number to be 4% of your total nest egg. So, if you want to live off of $40,000 a year, this has to be 4% of how much money you save towards retirement, which means you would need $1 million put aside to be able to retire comfortably"
Retirement Savings
Pending
An investment of $1 million can generate $70,000 per year in passive cash flow, which can be used to cover living expenses.
"If I invest $1 million, I can generate $70,000 a year in cash flow from my investments that I can spend to pay for my life."
Passive Income from Investments
Pending
An emergency fund should consist of 3 to 12 months of living expenses.
"You want to have somewhere between 3 to 12 months worth of extra savings put aside."
Emergency Fund Savings
Pending
The 75-10 rule suggests spending a maximum of 75% of income, investing a minimum of 15%, and saving a minimum of 10%.
"7510, which says for every dollar that you earn from here on out, 75 cents is the maximum that you can spend. 15 cents is the minimum you're putting aside to invest and 10 cents is the minimum you're putting aside to save."
Investment Allocation Rule
Pending
The debt avalanche method prioritizes paying off debts with the highest interest rates first.
"Whatever is charging you the higher interest, you're going to take all of your extra money and work to pay off that one first."
Debt Payoff Methods
Pending
A rule of thumb for luxury purchases: if you cannot afford to buy five of an item, you cannot afford to buy one. For example, to buy a $5,000 handbag, one should have $25,000.
"If you can't buy five of them, you can't afford one of them. You want that $5,000 Gucci handbag, you better have $25,000 to buy it first."
Luxury Purchase Rule
Pending
It is possible to start investing in income-producing assets with as little as $100.
"You can start with this as little as $100."
Income Producing Investments
Pending
Term life insurance is recommended as a basic form of financial protection.
"Term life insurance at the very least, which can be there as a protection."
Term Life Insurance
Pending
Spending a couple hundred dollars for a tax return audit could save up to $1,000 in taxes.
"it still might be worthwhile to spend a couple hundred dollars to get your tax return audited to make sure you're not overpaying in taxes because well, if you can pay $200 to save $1,000 in taxes, well, that's money well spent."
Tax Audit
Pending