Why Playing the 7.5.2 Game Yourself is the Best Way to Improve Your Personal Finance

Title: Playing the 7.5.2 Game Yourself: A Surefire Way to Improve Personal Finance

Introduction:

Personal finance management is a critical skill in today’s fast-paced world. With increasing expenses and inflation, it’s essential to have a sound financial plan in place. But, unfortunately, many individuals lack this skill. They either find it too complicated or simply don’t know where to begin. This is where the 7.5.2 game comes in.

The 7.5.2 game is a financial planning tool created by Carl Richards, a certified financial planner and columnist at The New York Times. The game helps individuals prioritize their financial goals, create a workable budget, and pay off debts efficiently. In this article, we will look at why playing the 7.5.2 game yourself is the best way to improve your personal finance.

Body:

1. The 7.5.2 game helps you prioritize your financial goals

Setting financial goals is essential to creating a solid financial plan. However, it’s easy to get sidetracked by short-term wants and forget the big picture. The 7.5.2 game helps you focus on your long-term financial goals by breaking them down into three categories – needs, wants, and wishes.

According to the game, 75% of your income should go towards needs, 15% towards wants, and 10% towards wishes. Needs include essential expenses like housing, food, and utilities. Wants refer to things that are not necessary but add value to your life like entertainment and hobbies. Wishes are long-term goals like retirement that require savings and investments.

2. The 7.5.2 game helps you create a workable budget

Once you’ve identified your financial goals, the next step is to create a budget that aligns with them. The 7.5.2 game helps you do this by breaking down your income into three categories – taxes, savings, and spending.

According to the game, 50% of your income should go towards taxes, 20% towards savings, and 30% towards spending. By following this budgeting rule, you can ensure that you’re saving enough for your goals while also enjoying your money in the present.

3. The 7.5.2 game helps you pay off debts efficiently

Paying off debts can be stressful and overwhelming, especially if you have multiple debts with different interest rates. The 7.5.2 game helps you tackle your debts efficiently by prioritizing them based on interest rates.

According to the game, you should pay off debts with the highest interest rates first. This way, you can avoid paying more in interest over time and accelerate the debt payoff process.

Conclusion:

Playing the 7.5.2 game yourself is the best way to improve your personal finance. It helps you prioritize your financial goals, create a workable budget, and pay off debts efficiently. By following the game’s guidelines, you can achieve financial stability and security, regardless of your income level. So, start playing the 7.5.2 game today and take control of your financial future!