Maggie Sellers' Hot Smart Rich Budgeting Method
disclosure: this is not financial advice.
A detailed breakdown of Maggie Seller’s 50/20/20/10 budgeting framework for the woman who wants to be hot, smart, and rich.
Who is Maggie Sellers (and why do I love her work?)
If you don’t know Maggie Sellers, she’s that woman you see online who’s somehow doing it all, leading in her career, investing in brands that should exist, living beautifully, and never once giving off scarcity energy. She’s magnetic, she’s smart big sis energy, and she comes across real af.
While I don’t know her for real, I first “met” Maggie via her newsletter Hot Smart Rich, published weekly on Sundays. She does an excellent roundup of what’s happening in the consumer space (I work in Consumer Market research, so I love to get her news roundup), and shortly thereafter, she started a podcast by the same name. I’ve been watching closely ever since.
Maggie recently announced her marriage to Courtney Reum, founder of M13 (another investor I admire), and their union is giving Emma and Jens Grede. Hot. Smart. Rich. There’s nothing I love more than learning from a power couple.
On a recent episode of Hot Smart Rich, Maggie broke down her 50/20/20/10 budgeting method, which she adapted from another finance expert—but with a twist. Hearing her explain it was the most excited I’ve ever been to think about and plan how to allocate my money.
One of the things I love about Maggie’s content is how she talks about money with taste and intention. She doesn’t make you feel bad for ordering the $20 matcha, she just wants to know if it’s part of your plan. On her podcast she asks every guest “What was the last thing you bought?” and “What was the last most expensive thing you bought?” answers range from “the Uber here” to “a PJ for my friends for vacation.”
Her 50/20/20/10 rule is one of my favorite frameworks because it’s not about restriction, it’s about understanding, and clarity. It helps you see where your money’s going and ensures it reflects and compounds who you actually want to become.
Alright, let’s get into it… “Are you ready to get Hot, Smart, Rich?” (*** Maggie voice ***)
The Framework — 50/20/20/10
Before I share Maggie’s framework, here’s what I want you to know. I’ve read Money: Master the Game (Tony Robbins), The Latte Factor (David Bach), Rich Dad Poor Dad (Robert Kiyosaki), The Science of Getting Rich (Wallace Wattles), Women & Money (and every other Suze Orman book), Playing with FIRE (Scott Rieckens), Broke Millennial (Erin Lowry), and Own It (Sallie Krawcheck), and probably 100 other books on money. My point is: I’ve done a lot of reading and research on this topic, and I’ll continue to do so.
As someone who’s naturally curious and always looking for a new framework or way to think about things, I was intrigued by Maggie’s approach to budgeting and wealth-building: the 50/20/20/10 method.
Before we go further: I’m not asking you to read as much as I have, though if mastering your money is a priority, it won’t hurt. I’m also not asking you to debate the method with me, this isn’t financial advice, after all, but if using money as a tool is something you’re prioritizing, this method might expand your mind and how you think about money.
What I like about Maggie’s approach is that it feels real and it feels purposeful.
Maggie breaks down money allocation into four categories:
50% Needs (things you can’t survive without)
20% Savings (investments and security)
20% Desires (what brings you joy today)
10% Goals (what expands you tomorrow) —> I love this last part…. It’s about funding both your current self and your future self.
Alright, let’s dive into everything further…
50% — Needs
This category is all about asking yourself: “Can I live in safety and dignity without this purchase?”
This includes rent, groceries, insurance, childcare, minimum debt payments, the basics that keep you safe and stable.
Ask yourself questions like:
If you lost your job tomorrow, would you still spend money on it?
Could you live without it for six months?
If the answer is “no,” it’s a need. There’s no glamor here, but this category gives you the confidence to splurge guilt-free later. Safety first. Always.
Maggie also suggests that we reframe what actually counts as a need. You need food, yes, but do you need all your food to be organic and sourced from Erewhon? Nope. Aldi will do. You need a car, yes, but a G-Wagon? Not when a Hyundai works just fine. You need a roof over your head, for sure! But not a penthouse. When you spend beyond what you need, those dollars become desires. Recognizing that distinction is key to long-term wealth.
20% — Savings
This is your peace of mind money. It includes your cash reserves, HYSA, investments, emergency fund, and debt payoff plan. This category builds freedom, not just security. This 20% is your buffer between “I’m fine” and “I’m unf*ckwithable.”
What I love about Maggie’s POV here is that it’s about abundance, allocating money here shifts you from “I can cover my needs” to “I have money working for me,” so you can make decisions from a place of power and prosperity..
20% — Desires
Here’s where it gets fun! Your “desires” bucket covers all the things that make you feel like your most authentic self (see How To Be Magnetic's Authentic Code Process Helps Me Manifest from My Authenticity aka Authentic Code): the fancy car, nice apartment, dinners with friends, travel upgrades, facials, manicures, massages, wardrobe refreshes, you name it. This category is for the splurgy things that you just love.
But here’s my twist: stack rank them based on what aligns most with your authentic code. For example: The joy from a facial might not equal the joy from a massage or the feeling of freedom behind the wheel of that dream car. When you’re allocating 10% to desires, think about the “dollars in → joy out” equation. What makes you feel most like your best self?
I’ve started running my desires through my Authentic Code filter:
Is this aligned with the pillars of my authentic code?
Does it expand me or drain me?
Will my hot, smart, rich self thank me for this in a year?
If yes, amazing. Buy it proudly. If not, it’s a no, even if it’s cute.
10% — Goals
This final category is for spending that helps you grow personally or professionally. It’s your “become her” money. *** Ahem *** we could say its your ManfiestHer Money ;)
This could mean taking a class, joining a membership club, publishing your book, starting your business, or buying Maggie’s 50/20/20/10 workbook.
Maggie uses her “goals” dollars as her angel investing fund (she also runs a syndicate). Her thesis includes funding companies that 1) could deliver outsized returns, 2) companies she thinks should exist but don’t and 3) using the investments to expand her network to include other visionary people.
And it works! She met her husband, Courtney Reum (whose fund, M13, has >$1.5B AUM and whose exist include: Lyft, Ring, Pinterest among others), through investing and building her network. Talk about hot, smart, rich energy.
When I think back to my own big investments—whether in personal development or angel investing—this framework gives those dollars more clarity and power.
How I’ve Adapted It
I downloaded her workbook and have been making my way through it, as I go through I am adding in my own layers based on my own personal development work and methods. Here’s the two that I’ve adapted into my own model.
The Authentic Code Audit (inspired by Lacy Phillips’ TBM Pathway) — a self-check before any purchase:
Is this purchase in service of my safety, beauty, or future?
Which pillar(s) of my authentic code does it align with?
Does this expense expand me or drain me?
Will my future self even notice—or be proud of—this spend?
If it’s aligned, I buy it proudly. If not, it’s a no.
The Compounding Investment Litmus Test – a self-check to make sure that my goals dollars are expanding me personally, professionally, and my network, in directions that will serve future me.
Is this purchase going to expand my mind and/or give me more confidence / authority / perspective in the areas where I am seeking growth right now?
Are these dollars going to connect me to the types of people whom I want to be around and spend more time with?
A year from now, what three possibilities could be unlocked by using these dollars in this way that would excite me?
If I’m clear on how these dollars could compound into something exciting and meaningful as a next step on my life or career trajectory, they’re a hell yes for me.
How to Try It Out (Even If You Don’t Want to Splurge on Maggie’s Download)
Are you bought in yet? (no pun intended). If so, here’s what I would do to “try this on” so-to-speak, if you feel like dipping a toe.
Audit your spending.
Look at the last 90 days and categorize every expense. Be brutally honest, especially around your NEEDS.Stack-rank your desires.
From your “desires” expenditures, list each expense and rank them by the joy / peace / etc. they brought you. Then align each to your authentic code pillars and notice the patterns. The #1 thing on the list should be the thing that brought you the most joy, made you feel absolutely magnetic, and has compounded your happiness day in and day out since you purchased it, either because of it’s usefulness, how it makes you feel, or the memory of the experience you get to cherish as a result of having spent on it.Make a plan for your peace money.
Automate your savings and goals dollars if possible. If not, pick a date each month to move them manually—future you will thank you.Review monthly for a “beta period”.
Test this for 60 days. Track how each expense makes you feel, not to punish yourself, but to build awareness. I call this a beta period, because it’s effectively a trial period, I am not asking you to do this the rest of your life, but how will you know if it works for you if you don’t try it on long enough to get a result?Celebrate and repeat.
When you finish your first cycle, celebrate with a small treat from your desires list (listen, probably not a Chanel bag, but maybe something around $40 that makes you really happy). Then decide if you want to keep going.
The Takeaway
The Maggie Sellers 50/20/20/10 Rule isn’t about budgeting, it’s about energy management. It’s about making sure your money matches your values, your goals, and your next level. When you spend in alignment, you don’t just look hot, smart, rich, you embody hot, smart, rich. Because hot, smart, rich women don’t just make and spend money. They make it mean something.
Try It This Month
Pull your bank statement. Categorize your spending into Needs, Savings, Desires, and Goals. Ask yourself: Does this reflect what matters most to me? If not, make one small change.
That’s how financial freedom starts—one intentional choice at a time. And hey, if you decide you want to take it deeper (and it’s aligned with your GOALS spending), go ahead and download a copy of Maggie’s templates. I did and I really like the way they are set up and the way the exercises build on one another. Very helpful.
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