LeBron James has officially become a billionaire and is the second NBA player ( after Michael Jordan) to register on the billionaires list. Not only is he good at making money, but the savings lessons James learns are even more valuable.

Overall, LeBron James earned $387 million from the Cleveland Cavaliers, Miami Heat and Los Angeles Lakers clubs, with $900 million in revenue from the video production company, partnerships with other clubs. cult brands and some other investments.

James is an Ohio-𝐛𝐨𝐫𝐧 NBA player and he had a difficult 𝘤𝘩𝘪𝘭𝘥hood as his mother struggled to make ends meet. With the meager amount of money, all expenses are just right for his mother and son to ensure the most basic needs. So James’ NBA career came not only from hard work, but also from a money-saving lesson he learned from his uncles. James said they have a principle, every time they give him a dollar, the uncles advise that they should only spend 35 cents and keep 65 cents; If they give you two dollars, the advice is to spend half and save the other half.

Now, with a rich understanding of the NBA basketball industry, along with how to run a business, LeBron James expressed his ambition to own an NBA franchise (can be understood as a football team) in the future. future.

We’ve always wanted to save money, but haven’t really put this goal into a rule-based framework. That’s why we save on a whim and fall short of our financial goals for a long time. Following the frugality (spending 35 cents and keeping 65 cents) that James has learned from an early age, he is following the 50/20/30 rule. This is a popular budgeting method that divides your monthly income into three main categories.

– 50% of income is for living, an unavoidable part of expenses including rent, electricity, water, means of transportation, food needs, insurance, life utilities…

– 20% of your income goes towards your financial goals, such as paying down debt, saving and investing.

– The remaining 30% of income is discretionary spending, including entertainment, shopping, travel and dining (in luxury restaurants or outside shops).

This tool will give you a comprehensive view of your financial situation. Are these numbers breakable? The answer is no, but can “bend”. If you live in a place with a fairly high standard of living, the cost of living can “overflow” into your discretionary income a bit, according to the 60/20/20 rule. As you can see, the most important number is the lowest 20% dedicated to savings, so don’t just arbitrarily break it. If you are financially stable and have plenty of money, you can use half of your monthly income more comfortably. But it must be ensured that the remaining 50% after using for living expenses still has a considerable amount left over.