Why You're Still Broke, Even With a High Income
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Ask me anything about this video:
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Karlly Feng allocates 10-15% of her after-tax income to discretionary spending.
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Karlly Feng uses the example of someone planning to move to a different city within the next year. She questions whether buying a new piece of clothing aligns with that goal, pointing out that the purchase is unnecessary given the upcoming move and the need to pack belongings.
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Karlly Feng recommends saving 3 to 6 months of overhead expenses in a high-yield savings account for an emergency fund.
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As of May 2025, Karlly Feng mentions that a good high-yield savings account interest rate matches the federal funds interest rate, which is approximately 4.33%.