Today we are going to talk about a very interesting topic that affects everyone! Namely, the appearance of the magic “3” in our finances (Rule 3). The magic triple itself may already be familiar with folk tales or marketing materials. There are numbers that help you streamline, memorize and develop. Probably such a magic, centuries-old figure, is the “3”. But how is it possible for anyone who applies the “3” rule in their finances to always be able to evolve?
I noticed that people always apply the “1” or “2” rule in their finances! They have a job, the family comes from two places, and they live with zero savings. What if they were living in a smarter system?
Arrive at “3” different locations – Rule 3
In the 21st century, one-man-one workplace structures are increasingly degrading. Even if you feel safe in this way, it would be worth at least one of you (a couple) to start a private business or get a second job. The reason for this is the achievement of financial independence, which is always mistakenly identified by wealth.
Medium-minded people can also be materially independent at average workplaces!
In fact, material independence means that we can say no to a task at any time without getting into financial difficulty because of lost income. So we don’t have to make unnecessary compromises! This can only be achieved by an average person if his income portfolio is made up of at least two, but rather three.
Let’s be a major source of income and two “minor”. However, our regular monthly expenses are adjusted to the main source of income, so we cannot be surprised if one of the appendixes is left out.
Our housing costs represent up to 30% of our income
We have to live somewhere. So this is our necessity. However, many people consider this to be a goal rather than a necessity, and instead of using their home as a tool, they rather order their entire life. They have been fighting for decades and renouncing everything on the go.
The 50% maximum value of a ABC indicator is a life threat in itself, since in fact the law says that we can spend up to 50% of our verifiable income (over 60,000 HUF) on loan repayment. Of course, it still sounds better than the past, when families have 70-80% of their income with home loans.
What did the three-way rule save us?
Regardless of this, a stable financial background can only be built if we spend up to 30% of our income on housing. This saved us from two problem situations:
- Excessive indebtedness
- Excessive Housing Quality (Luxury We Could Not Allow You)
The table shows the ideal state. The reality, on the other hand, is that it is not possible to “stay somewhere” in the more favored cities, unless we pay a loan with the right self-sufficient or live in our own / family home for free. It should not be forgotten that every forint spent on housing above 30% will certainly reduce our potential savings.
Tip: Since we cannot influence real estate prices and housing costs beyond one point, there is no other way to go than the first point. So we have to find out how we can earn secondary and tertiary income while we don’t get involved in the job!
We can’t hold more than 3 credits
Yes, these three include the “unused” overdraft facility and the student loan. But even credit for goods is no excuse if it were just our fourth loan and a debt would only be generated for a short time. I noticed that our risk of material bankruptcy increases exponentially when we start to accumulate loans.
As long as 1 loan rarely goes bankrupt, people get into a difficult situation, and over 3 loans can be problematic if our personal conditions (income, health, etc.) change. You’re not told to spend too much, and if we can’t buy an electronic device for kp, we can’t afford it. I am more indulgent than this, as a merchandise loan can be beneficial for us if we choose wisely. However, this does not mean that you do not need to have the required amount on your current account.
The goods loan, personal loan is always a matter of choice and no need!
We have at least 3 savings!
An eternal rule is that you should always have more savings than your credit. Certainly, families that set specific savings targets and have a concrete implementation plan will be able to build a more successful financial foundation. It’s not enough somewhere to throw money for some reason.
Typical savings can be:
- child’s life support
- wealth preservation
- accumulation of liquid safety reserves