The assumption is that your wealth is throwing off 0.01% per day.

And if you compound that over 365 days, that's about 3.7% per year, which is even more

conservative than the 4% rule.

And the idea behind the 0.01% rule, it's just that, hey, when this occasional expense comes up,

you can just pay for it because it's trivial. You don't have to think about it. That marginal decision, that's what I want to attack. I want to say, when is it okay for this particular thing? And I'm like, oh, I'm at the grocery store. Can I get cage-free eggs instead of standard eggs? Oh, but that's $2 more.

Well, if your net worth is $20,000 or more, then like, have at it.

Nick Majuli is the best-selling author of the book Just Keep Buying,

the CEO of the New York City investment firm, Ridholtz Wealth Management,

the blogger behind the popular of dollars and data,

and finally and most importantly, a friend of mine.

Nick is one of the few classic personal finance writers or so-called finfluencers

whose robust advice and insights I still will revisit regularly and will read his personal finance

stuff every week when he publishes something, his new book, The Wealth Ladder, introduces a

critical philosophy to financial advice. That it's not one-size-fits-all, and that your

strategies should vary significantly. They should change depending on where you are on that

ladder. Someone who's focused on working up from their $0 mark to their first $10,000 in savings

should prioritize where they're spending their energy and their focus very differently from

someone who's trying to go from $100,000 to a million

dollars. In other words, when you are taking financial advice from someone on the internet,

you have to make sure that it is for you. He breaks up the levels by factors of 10. So they become

increasingly extreme as you go. His first range is from zero to 10,000,

and then 10,000 to 100,000, and then 100,000 to a million. You get the gist. The highest level that we're

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