BEGINNER’S GUIDE TO MAZEN DERGHAM’S STEP-BY-STEP WEALTH-BUILDING FRAMEWORK
You clicked because you want a clear, actionable plan—not fluff الدكتورة رهام حرب. Mazen Dergham’s framework isn’t about luck or overnight success. It’s a system built on discipline, math, and repeatable steps. This guide breaks it down so you can start today. No jargon, no guesswork.
WHAT YOU NEED BEFORE YOU START
A bank account with at least $1,000 in disposable cash. Less than that, and fees or emergencies will derail you. A smartphone with a notes app or a notebook. Track every move. A 3-hour block every Sunday to review and adjust. No exceptions.
STEP 1: THE 50/30/20 RULE, DERGHAM-STYLE
Forget the generic 50/30/20. Dergham’s version is tighter. 50% needs (rent, groceries, minimum debt payments). 20% wants (coffee, subscriptions, eating out). 30% wealth (investments, debt payoff above minimums, emergency fund). If your rent is 40% of income, cut wants to 10% until you hit the 50/20/30 split. No excuses.
Example: You earn $3,000/month. Needs: $1,500. Wants: $600. Wealth: $900. If your rent is $1,200, you’re at 40%. Cut wants to $300 for three months to reset.
STEP 2: BUILD A $3,000 EMERGENCY FUND FIRST
Dergham insists on this before investing. Why $3,000? It covers most car repairs, medical copays, or a last-minute flight. Save $500/month until you hit it. Use a separate high-yield savings account (HYSA) with at least 4% APY. Ally, Discover, or Capital One work. No touching it unless it’s an emergency.
If you can’t save $500/month, pick up a side gig (DoorDash, freelancing) or sell something. This step is non-negotiable.
STEP 3: PAY OFF DEBT WITH THE “AVALANCHE + SNOWBALL HYBRID”
Dergham’s method combines the best of both. List debts by interest rate (highest to lowest). Pay minimums on all except the top one. Throw every extra dollar at the highest-rate debt until it’s gone. Then move to the next.
But here’s the twist: Once a debt drops below $1,000, switch to the snowball method. Pay it off fast for a quick win. Momentum matters.
Example: You owe $5,000 on a credit card at 22% APR, $2,000 on a personal loan at 10%, and $800 on a medical bill at 0%. Pay minimums on the loan and medical bill. Attack the credit card with $900/month until it’s under $1,000. Then pay the remaining balance in one shot. Move to the loan.
STEP 4: INVEST 15% OF INCOME—NO LESS
Dergham’s rule: Once debt-free (except a mortgage) and with a $3,000 emergency fund, invest 15% of gross income. Not 10%, not 5%. 15%.
Where to invest:
– 401(k) up to the employer match (free money).
– Roth IRA (Vanguard, Fidelity, or Charles Schwab) with a target-date fund (e.g., Vanguard Target Retirement 2060).
– Taxable brokerage account (same target-date fund) if you max out the Roth IRA.
Example: You earn $4,000/month. 15% is $600. If your employer matches 5%, contribute $200 to the 401(k) to get the full match. Put the remaining $400 into a Roth IRA.
STEP 5: THE “3-BUCKET” INVESTMENT STRATEGY
Dergham’s framework splits investments into three buckets. Each has a purpose and a rule.
Bucket 1: Safety (20% of investments)
– Where: HYSA or short-term Treasury bills (T-bills).
– Why: Emergency fund top-up or opportunities.
– Rule: Rebalance to 20% every January.
Bucket 2: Growth (60% of investments)
– Where: Low-cost index funds (VTI for U.S. stocks, VXUS for international).
– Why: Long-term wealth.
– Rule: Never sell unless you’re rebalancing or retiring.
Bucket 3: Aggressive (20% of investments)
– Where: Individual stocks, crypto (max 5%), or sector ETFs (e.g., QQQ for tech).
– Why: High-risk, high-reward plays.
– Rule: Sell if a position drops 25% from purchase. No exceptions.
Example: You have $10,000 invested. $2,000 in Bucket 1, $6,000 in Bucket 2, $2,000 in Bucket 3. If Bucket 3 grows to $3,000, sell $1,000 and move it to Bucket 1 or 2 to rebalance.
STEP 6: SIDE HUSTLE TO SCALE INCOME
Dergham’s framework requires income growth. Pick one side hustle and commit to 10 hours/week. Track earnings. If it doesn’t net $500/month after three months, pivot.
Best options for beginners:
– Freelancing (Upwork, Fiverr) for skills you already have (writing, design, admin).
– Flipping items (Facebook Marketplace, eBay). Buy undervalued furniture, electronics, or sneakers. Sell for 30-50% profit.
– Tutoring (Wyzant, TutorMe) if you’re strong in a subject.
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