The 50/30/20 rule is a budgeting guideline that suggests allocating 50% of your income to needs (like housing, groceries, and utilities), 30% to wants (such as dining out and entertainment), and 20% to savings or debt repayment. While this rule is a helpful starting point, The Perpetual Wealth Strategy™ takes budgeting a step further by focusing on building secure assets, like Whole Life Insurance, that provide liquidity, protection, and sustainable growth. This strategy shifts a portion of your savings toward stable, long-term wealth-building.
The 10% rule of money recommends saving at least 10% of your income consistently, helping to build financial stability and prepare for future needs. However, Paradigm Life emphasizes the importance of not just saving but investing in assets that grow predictably over time, like Whole Life Insurance. Using the cash value of your policy, you can create a financial foundation that goes beyond simple savings, leveraging growth that supports long-term financial goals through The Perpetual Wealth Strategy™.
The five basics of personal finance include earning, saving, investing, protecting, and planning:
The Perpetual Wealth Strategy™ incorporates these basics to create a comprehensive financial approach that supports growth and security.
The Hierarchy of Wealth is a model that prioritizes assets based on their security, control, and growth potential. At the base are foundational assets like Whole Life Insurance, which provide stability and liquidity. Moving up the hierarchy, higher tiers include assets with increasing risk and growth potential, like stocks or real estate. This structure ensures that your personal finances are protected and resilient, allowing you to build on a stable financial foundation before taking on higher-risk investments.
Balancing saving and investing means allocating funds toward both secure, accessible savings and investments that have growth potential. Whole Life Insurance offers a unique balance, as it provides both a guaranteed cash value that grows over time and the ability to access funds through policy loans. This approach allows you to save while also creating an asset that can be used for future growth, aligning with The Perpetual Wealth Strategy™ to support both short-term needs and long-term financial goals.
Compound interest is the process of earning interest on both your initial investment and the accumulated interest, allowing wealth to grow exponentially over time. Whole Life Insurance provides guaranteed cash value growth, allowing you to benefit from uninterrupted compounding, even when using policy loans. This makes compound interest a powerful tool in The Perpetual Wealth Strategy™, helping you build wealth that grows predictably and supports your financial goals.
