Hi folks and welcome to another five minute Friday here on Meaningful Money, thank you so much for joining me.

Can I say how handsome you're looking today?

Today I'm going to talk about something called the Rule of Thirds. It's another thing which actually did I make it up?

I want to say I made it up, but I think I might actually be stealing somebody else's thunder.

Almost certainly didn't make it up. I think I might actually be stealing somebody else's thunder.

Almost certainly didn't make it up. I'm clearly not that intelligent or creative.

But anyway I shall take all the credit for it today and talk about the rule of third.

So let's put five minutes on the clock down here and let's get going.

The first thing to say about the rule of thirds is that it's a rule of thumb only.

It's not a hard and fast rule.

Gotta be careful with rules of thumb and not apply them too religiously but instead just use

them as a basis for your thinking. Now the rule of third specifically applies to

the use of money in retirement. So if you're not in retirement yet, you can turn this video off or go watch something else on YouTube or on Netflix or something.

But if you're approaching retirement or in retirement,

hopefully this rule will help you think about which aspects of your money you're likely to use at different points.

What I mean by that is the first third of your money is money that you will definitely use during your lifetime.

The second third is money that you'll probably use, you might not use

it all, you might just use part of it, but you'll probably use some or all of it. And then the third

third, the final third, is money that you almost certainly

will not use. Now, really important, these are not going to be exact numerical thirds. Don't

divide your total wealth into three exact thirds. Don't divide your total wealth into three exact thirds

and then sue me in 20 years time because you spend too much of it or whatever.

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