Kyle Taylor knows a thing or two about saving money, having gone from broke to becoming a self-made millionaire in a matter of years.
In 2010, Taylor, like many millennials, was knee-deep in student debt and underemployed. To get out of his financial rut, he started a blog called The Penny Hoarder. The site is now a fully fledged company that offers financial tips to thousands of users.
The 30-year-old CEO and self-made millionaire tells CNBC that one formula in particular has helped him save.
The rule is useful for dealing with windfalls, like a large cash gift, a bonus or a raise.
It's called the "50/30/20 percent rule," Taylor says.