The rule directs half of every permanent net-income increase to future wealth and leaves half for present lifestyle.
OUR METHODSources → assumptions → European context → verdict
Why it works
Existing spending remains funded while saving accelerates automatically. The decision happens once, before lifestyle absorbs the entire raise.
Apply it
When monthly net income rises by €300, automate €150 toward investing, debt reduction or an emergency fund and keep €150 for life.
Adapt the percentage
Use more than half when finances are fragile or less when a major life need is underfunded. Consistency matters more than a perfect ratio.
Educational illustration only—not personal financial, tax or investment advice. Tax, salary, broker and market figures change; verify current local information before acting.