Welcome to Stack Smarts!

Welcome to Stack Smarts! We’re here to level up your money game with practical tips, tools, and insights for young adults. Expect weekly doses of budgeting, investing, and crypto know-how—starting today!

Budget Blueprint

If you’re gonna take any financial advice, make it this: the 50/30/20 rule.

Haven’t heard of it? Let’s break it down

What is the 50/30/20 rule?

This is a killer budgeting method that splits your money into three buckets: Needs, Wants, and Savings/Investing.

50% goes to Needs, 30% to Wants, and 20% to Savings or Investing. Sounds simple, but tons of people mess up by mixing Needs and Wants. Spoiler: no that new pair of shoes is not a need if you have 28 pairs already 😑

Needs vs. Wants:

• Needs: Rent, groceries, utilities, insurance, transportation (e.g., bus fare or car payment if it’s your only ride)

• Wants: New shoes, dining out, streaming subscriptions, gaming gear etc.

The Big 20%—Savings/Investing:

This is the money-maker! Put 20% toward savings or investing—hands down the most crucial part.

Only keep 3-6 months of bills (your emergency fund) in a savings account as cash.

The rest? Wipe out high-interest debt (over 5% APR) first, then invest.

Inflation’s climbing—around 3% annually per 2025 Fed data, and was around 9.1% in 2022—so don’t be a fool and let your cash sit idle in a bank losing value. We all know your company isn’t going to give you those well deserved “inflation raises”

Tool Spotlight

Check out PocketGuard—a free app to track your 50/30/20 split. It shows you exactly how much you can spend, lets you set limits, and pings you with alerts when you’re nearing them.

Worth a shot if you’re just starting out and want to stay on track!

Stack Start

Stack Start is where we dive into investing—short, simple, and straight to the point. First things first, download an exchange app.

I use Fidelity, but check out others like Charles Schwab, TD Ameritrade, or Robinhood—all great for mobile trading.

Now, let’s invest. Using our 50/30/20 rule, put 20% of your gross pay (before taxes) into investing (or paying off high interest debt, but at least 10%). I suggest a Roth IRA—it lets you withdraw earnings tax-free after age 59½. Start with low-risk ETFs like Vanguard’s VTI or S&P 500 ETFs (IVV)—both solid, diversified options.

I personally split my 10-20% Roth IRA investments into these 5 low-risk ETFs:

• MGK (25%): Vanguard Mega Cap Growth ETF—tracks big growth stocks like Apple and Microsoft.

• VYM (25%): Vanguard High Dividend Yield ETF—focuses on steady dividend payers like JPMorgan.

• VGT (20%): Vanguard Information Technology ETF—loads up on tech giants like Nvidia.

• VBK (15%): Vanguard Small-Cap Growth ETF—targets smaller, fast-growing firms.

• VOT (15%): Vanguard Mid-Cap Growth ETF—mixes mid-sized growth stocks.

Mix those percentages however you like based on your gut, but this is a solid, diversified start to stackin’ your wealth!

Youtube Video of the Week

Check out this more in depth youtube video about Roth IRAs

Crypto Corner

Huge crypto news dropped today!

XRP has officially filed for a banking license, a massive leap forward for cryptocurrency adoption. This move by Ripple could position XRP as a legit player in traditional finance, bridging the gap with banks and boosting its use for cross-border payments.

Also, the ISO 20022 standard—backed by the U.S. government and set for global rollout by 2025—promises a unified messaging system for financial transactions. This will benefit cryptos like XRP, Stellar (XLM), and Cardano (ADA) by enhancing interoperability with banks, speeding up payments, and increasing trust. Big wins for these coins!

We’ll talk more about where to buy and sell coins and how to store them safely in the coming newsletters, but for now a win is a win in the crypto world!

Next Stack

Since there are a few haters on the 50/30/20 rule were going to talk about my personal favorite, the 75/15/10 rule—75% needs, 15% savings/investments, 10% wants.

Don’t miss it, Thursday at 2:22 PM EDT!

P.S.:
Hey AI + Accounting crew. I’m pivoting to Stack Smarts, a broader dive into personal finance and investing, which I’m pumped to write about. I’ve moved your subscriptions to the new list—confirm by checking stacksmarts.beehiiv.com. Can’t wait to guide you more!

Love,
Kyle