The 75/10/15 Rule: How to Manage Your Money Like the Wealthy (No Matter How Much You Make)
If you’ve ever wondered how wealthy people manage their money — even those who started with very little — there’s a simple, yet powerful rule that could change the way you think about personal finance. It’s called the 75/10/15 Rule, and the best part? It works no matter how much you earn. Whether your income is $10,000 a year or $1 million, this rule helps you spend smarter, build a safety net, and grow real wealth.
PERSONAL FINANCE
By ONE RUPEE
4/6/20252 min read


Step 1: Spend No More Than 75% of What You Earn
For every dollar you make, only 75 cents should go toward your lifestyle and expenses. That includes:
Rent or mortgage
Food and groceries
Transportation
Vacations
Even that $5 iced coffee or new gadget
Why 75%?
It gives you flexibility without restricting enjoyment.
It trains you to prioritize value over price.
It helps you develop frugal habits — something even millionaires practice.
In fact, the wealthiest people often look for deals, ask for happy hour menus, and even split bills down to the last cent — not because they have to, but because they understand how to protect their wealth.
And here’s a truth bomb: big-ticket purchases (like fancy cars or 100-inch TVs) often bring only short-term happiness. After the honeymoon phase, they become just another thing.
Step 2: Save 10% For a Cushion Fund
This 10% is your safety net — not for travel, dining, or impulse cravings, but for real emergencies:
Medical issues
Car accidents
Sudden job loss
Unexpected repairs
How Much Should Be in Your Cushion Fund?
Add up your monthly expenses
Multiply that by 5 months
For example, if you spend $2,000 a month, your cushion fund should be $10,000.
Once you hit your cushion goal, stop saving in that category and move on to investing.
Also, keep this fund in a high-yield savings account (HYSA) instead of a traditional one — your money grows much faster with interest rates up to 4% APY compared to 0.5% from traditional banks.
Step 3: Invest 15% to Build Wealth
The final 15% should go toward investments. Why? Because:
“Real wealth isn’t built from labor — it’s built from owning assets.”
This mindset shift is what separates people who just make money from those who grow it.
Start With These Two Accounts:
Roth IRA
Contributions are made with after-tax income
Earnings grow tax-free
2024 limit: $7,000 (or $8,000 if over 50)
401(k)
Offered through employers
Contributions made pre-tax
2024 limit: $23,000
Often includes employer matching (aka free money)
💡 Pro Tip: Don’t just transfer money into these accounts — you need to invest it within the account.
What to Invest In?
The simplest and most effective option: Index Funds or ETFs.
Why Index Funds?
Diversification (spread across 500+ companies)
Lower risk
Long-term returns of 8–10% annually
Set it and forget it approach
Examples:
VOO – S&P 500 Index
FXAIX – Fidelity’s S&P 500 Index Fund
Final Thoughts
This 75/10/15 rule might seem simple — because it is. But when applied consistently, it creates the foundation for long-term financial freedom.
TL;DR Recap:
✅ Spend no more than 75%
✅ Save 10% in a cushion fund
✅ Invest 15% to build assets
Simplifying your financial journey, one rupee at a time.
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Disclaimer:
The content provided on the One Rupee blog is for informational purposes only and should not be considered as financial advice. While we strive to provide accurate and up-to-date information, we make no warranties regarding the completeness or accuracy of the content. Financial decisions are personal and should be made based on your individual circumstances. We recommend consulting with a financial advisor before making any investment or financial decisions. One Rupee is not responsible for any actions taken based on the information provided on this blog.
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