How I Split My Paycheck @ 20 years old

@_rowhh

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Why it worked

The video provides a clear and actionable breakdown of a personal finance strategy, resonating with viewers interested in budgeting and saving at a young age. The use of on-screen text and a relatable creator persona likely contributed to its engagement.

Summary

A 20-year-old explains their paycheck splitting strategy, allocating funds to checking, savings, Roth IRA, brokerage, wants, and essential expenses. They mention using an Excel sheet for tracking and primarily using a credit card for rewards.

Structure

1Introduction to paycheck splitting
2Allocation to checking account
3Distribution to savings and investments (HYSA, Roth IRA, Brokerage)
4Allocation to wants and needs (fun money, bills, groceries)
5Explanation of credit card usage for rewards
6Call for audience engagement and feedback

On-screen text

How I Split My Paycheck @ 20 years old $2000 Checking Acct. (Landing zone) HYSA: 5% ($100) Roth IRA: 15% ($300) Brokerage: 15% ($300) 20% ($400) Wants / Fun 45% ($900) CC payment, Rent, Groceries, Etc.

Original caption

Some personal finance vids woah now #fyp #finance #payday

More from @_rowhh

More breakout videos from this creator.

Transcript

I just got paid for the week and this is exactly how I split each paycheck up as a 20-year-old who's trying to focus on investing and saving money so I can get wealthy at a younger age. So, I got paid $2000. That all immediately goes to my checking account. So, I put 5% to my high yield savings. I would put more if I was trying to gain an emergency fund, but I already built that up. Um, I put 15% into a Roth and 15% into a brokerage. 20% ($400) wants / fun, 45% ($900) CC payment, Rent, Groceries, etc. that will be occurring no matter what. I have an Excel sheet for this that immediately divvies up all the amount that I got paid. So if you guys want me to share that, I can. I also want to clarify that my checking account, I don't use my debit card very often. I basically put everything that I pay for on my credit card because I get rewards and cash back and I don't see why I wouldn't utilize that to the max, especially if I'm trying to build a credit score. So that's kind of how I do it as a 20-year-old, but share your experience if you guys think that I'm doing it wrong, let me know what you think. But yeah, if you think I should make more videos like this, also let me know.