If my parents could have taught me one financial lesson and if schools would have reinforced it, wish it had been this:
👉 For every $100 you earn, invest $20.
This single rule, followed consistently, has the power to build wealth over a lifetime.
How It Works
Think about an average take-home paycheck today around $1,200 to $1,300 every two weeks for many working adults after taxes.
- For every $100 earned → $20 invested
- For a $1,250 paycheck → about $250 invested
- Over a year → roughly $6,500 invested
On the surface, it doesn’t look dramatic. But the consistency check after check, year after year is where the magic happens.
The Power of Time
Here’s how $250 invested every two weeks grows over time:
| Years | Just Saving | 5% Growth | 8% Growth | 10% Growth |
|---|---|---|---|---|
| 5 | $32,500 | ~$36,000 | ~$38,000 | ~$40,000 |
| 10 | $65,000 | ~$84,000 | ~$95,000 | ~$105,000 |
| 20 | $130,000 | ~$215,000 | ~$310,000 | ~$395,000 |
The Missed Opportunity
I’m 62 now. If I had started this habit at 18 years old, here’s where I would stand today 44 years later:
- At 5% growth: just under $1 million
- At 8% growth: over $2.3 million
- At 10% growth: more than $4.2 million
All from applying one rule: $20 from every $100 earned.
If my parents could have taught me one thing, I wish it was that.
Starting Even Earlier
Think about this: if you ever received an allowance as a kid, and your parents had taken $2 out of every $10 and set it aside for you — teaching discipline from day one the habit would have been automatic. You wouldn’t be fighting to learn it in adulthood.
I can’t stress enough how life-changing that simple routine could be.
The Lesson for You
It’s not about how much you make today. It’s about building the discipline to put aside a piece of every paycheck and letting compounding do its work.
The $20 Rule is simple, repeatable, and life-changing. Start now, and decades from today, you’ll thank yourself for making the choice.
You might be thinking, “I don’t have $20 to spare.” That’s normal. But the truth is, even $10 per $100 — or $5 per $100 — changes your future if you stay consistent. The point isn’t the exact amount; it’s the discipline of carving out a piece of every paycheck. Start smaller if you need to. Build the habit, then increase it later. What matters is that the gear starts turning.
Why I Built SRL and SVP
This is exactly why I developed SRL (Smart Relative Logic) and SVP (SmartValue Pro).
I knew I couldn’t go back and reclaim the 44 years I missed but I could build tools that help me, and others, maximize every $20 set aside today.
- SRL helps allocate money with discipline and structure, making sure each dollar is working in the smartest way possible.
- SVP digs deep into valuation, showing whether a stock is truly worth the price or if the market has it wrong.
Together, they turn the simple $20 Rule into a strategy, not just a savings habit.
I built these tools because I wanted to catch up. But more importantly, I built them so others don’t have to look back at 62 and say, “I wish I’d started earlier.”
