How To Manage Your Money Like The 1%

00:33:30
https://www.youtube.com/watch?v=QThz1B8SHmc

Résumé

TLDRThe video presents the 255010 rule for financial management, emphasizing the importance of owning assets and investing wisely. It suggests allocating 25% of income to growth investments, 15% to stability, 50% to essentials, and 10% to rewards. The speaker shares personal experiences and practical advice on how to implement this strategy, highlighting the significance of starting investments early for compound growth, setting up a stability fund, and maintaining a balanced lifestyle. The video encourages viewers to focus on long-term wealth building rather than short-term spending.

A retenir

  • 💰 75% of the richest people are entrepreneurs and investors.
  • 📈 Start investing early for compound growth benefits.
  • 🏠 Focus on owning assets, not just spending on liabilities.
  • 📊 Allocate 25% of income to growth investments.
  • 🛡️ Set aside 15% for a stability fund to cover emergencies.
  • 🛒 Limit essential spending to 50% of your income.
  • 🎉 Use 10% of income for guilt-free rewards and experiences.
  • 📅 Automate your investments for consistency.
  • 📉 Avoid lifestyle creep by prioritizing needs over wants.
  • 💡 Use tax-advantaged accounts to maximize savings.

Chronologie

  • 00:00:00 - 00:05:00

    The video begins by highlighting the wealth distribution among the richest people, emphasizing that 75% are entrepreneurs and investors. It stresses the importance of ownership, stating that if you don't own something, you are owned. To manage money like the wealthy, one must adopt the 255010 rule, which focuses on how to allocate income effectively for growth, stability, essentials, and enjoyment.

  • 00:05:00 - 00:10:00

    The first 25% of income should be directed towards growth, specifically investing in assets that appreciate over time. The speaker shares a personal success story of using this rule to become a millionaire, emphasizing the importance of starting early with investments. A comparison between two individuals, Billy and Phil, illustrates the power of compound growth, showing that starting early can lead to significantly greater wealth over time.

  • 00:10:00 - 00:15:00

    Next, the speaker outlines various growth assets, ranging from low-risk options like index funds to higher-risk investments like individual stocks and cryptocurrencies. The recommendation is to start with safer investments and gradually explore riskier options as confidence grows. The importance of selecting the right growth assets is emphasized, along with the need to set up tax-advantaged accounts to maximize investment returns.

  • 00:15:00 - 00:20:00

    The second 15% of income should be allocated for stability, which acts as a safety net. The speaker shares a personal anecdote about financial instability due to a lack of savings, highlighting the need for a stability fund. The process of calculating this fund involves determining core expenses and saving enough to cover several months' worth of expenses to avoid financial stress during emergencies.

  • 00:20:00 - 00:25:00

    The next 50% of income should cover essentials, with a focus on living within one's means. The speaker stresses the importance of distinguishing between essentials and luxuries, encouraging viewers to cut unnecessary expenses. By capping essential spending at 50%, individuals can avoid lifestyle inflation and focus on increasing their income instead of their spending.

  • 00:25:00 - 00:33:30

    Finally, the last 10% of income is designated for rewards, allowing individuals to enjoy their earnings guilt-free. The speaker emphasizes the importance of spending on experiences, hobbies, and gifts for loved ones, suggesting the creation of a separate account for this purpose. The overall message is to balance financial discipline with enjoyment to maintain motivation and prevent burnout.

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Carte mentale

Vidéo Q&R

  • What is the 255010 rule?

    The 255010 rule is a financial strategy that allocates 25% of income to growth investments, 15% to stability, 50% to essentials, and 10% to rewards.

  • Why is it important to invest early?

    Investing early allows for compound growth, which can significantly increase the value of investments over time.

  • What types of assets should I invest in?

    Consider investing in index funds, real estate, skills, online businesses, and individual stocks, depending on your risk tolerance.

  • How can I set up a stability fund?

    Calculate your core monthly expenses, multiply by five, and save that amount to cover unexpected costs.

  • What should I do with the 10% for rewards?

    Use the 10% for experiences, hobbies, vacations, and gifts to maintain a balanced financial life.

  • How can I automate my investments?

    Set up automatic transfers from your bank account to your investment platform to ensure consistent investing.

  • What is a high yield savings account?

    A high yield savings account offers higher interest rates than traditional savings accounts, helping your stability fund grow.

  • What are tax-advantaged accounts?

    Tax-advantaged accounts, like ISAs and Roth IRAs, allow you to invest money tax-free or tax-deferred.

  • How can I avoid lifestyle creep?

    Limit your essential spending to 50% of your income and focus on what truly adds value to your life.

  • What is the importance of having a stability fund?

    A stability fund provides a financial safety net, preventing you from having to sell investments during emergencies.

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Défilement automatique:
  • 00:00:00
    Let me tell you something that will
  • 00:00:01
    change your life if you let it sink in.
  • 00:00:04
    The richest people in the world are 75%
  • 00:00:07
    entrepreneurs, 15% investors, 7%
  • 00:00:11
    inheritors of wealth, 3% athletes,
  • 00:00:14
    entertainers, and artists, 0% employees
  • 00:00:18
    who just earn a salary. So if you want
  • 00:00:20
    to know how to manage your money like
  • 00:00:22
    the 1%, you have to understand what
  • 00:00:24
    those first four categories have in
  • 00:00:26
    common. So let's think about it.
  • 00:00:28
    Entrepreneurs own businesses. Investors
  • 00:00:31
    own assets. Rich kids own trusts.
  • 00:00:34
    Finally, athletes, entertainers, and
  • 00:00:37
    artists own rare skills. So, it's clear
  • 00:00:40
    if you don't own something, you are
  • 00:00:42
    what's owned. That's the secret most
  • 00:00:44
    people miss. So, how can you start
  • 00:00:46
    owning things like the 1%? Well, you
  • 00:00:48
    need to follow the
  • 00:00:50
    255010 rule. I designed this rule so
  • 00:00:52
    that anyone, no matter what their
  • 00:00:55
    income, can manage their money like the
  • 00:00:57
    top 1%. Because the truth is, it's not
  • 00:01:00
    about how much money you make. It's
  • 00:01:02
    about how you manage what you make. I'm
  • 00:01:04
    not just some YouTuber. I've actually
  • 00:01:06
    used this rule for decades, and it's
  • 00:01:08
    enabled me to become a
  • 00:01:09
    multi-millionaire, even though I started
  • 00:01:11
    out with no money and no qualifications.
  • 00:01:14
    So, let's get into it.
  • 00:01:19
    The first 25% of your income should be
  • 00:01:22
    going towards growth. This is the 25%
  • 00:01:25
    that works for you. By growth, I don't
  • 00:01:28
    mean some kind of mindset nonsense about
  • 00:01:30
    growing as a person with the power of
  • 00:01:32
    meditation. I mean using this money to
  • 00:01:34
    buy things that increase in value. You
  • 00:01:36
    see, when most people get their
  • 00:01:38
    paycheck, they pay the bills and then
  • 00:01:40
    blow the rest on useless things they
  • 00:01:42
    don't even remember buying. This is
  • 00:01:44
    exactly why 99% of people are trapped
  • 00:01:46
    owning nothing of value. The truth is
  • 00:01:49
    this is all by design. The system wants
  • 00:01:52
    us rich for a week, then skint by the
  • 00:01:54
    end of the month, waiting for the next
  • 00:01:56
    payday, so we've got no breathing room,
  • 00:01:58
    and then we're forced to work even
  • 00:02:00
    harder next month just to keep up. This
  • 00:02:02
    is effectively modern-day slavery. Just
  • 00:02:04
    think about it. Slaves used to work
  • 00:02:06
    every day with no pay. But they got free
  • 00:02:09
    food, shelter, and water. Today, people
  • 00:02:12
    work nearly every day and get paid.
  • 00:02:14
    However, their money is mostly spent on
  • 00:02:16
    food, shelter, and water. The only thing
  • 00:02:18
    that has changed is the illusion of
  • 00:02:21
    freedom. Once you understand this, you
  • 00:02:23
    can start fighting back by taking that
  • 00:02:25
    first 25% of your income and putting it
  • 00:02:28
    straight into assets. This is anything
  • 00:02:30
    that grows in value over time and puts
  • 00:02:32
    money in your pocket. The idea is that
  • 00:02:34
    while you're out working, these assets
  • 00:02:36
    that you own are working for you in the
  • 00:02:38
    background. Eventually, these assets
  • 00:02:40
    could even make you more money than your
  • 00:02:42
    day job. You might think you don't have
  • 00:02:43
    enough money to invest in assets.
  • 00:02:45
    However, you need to find the money
  • 00:02:47
    because the sooner you start, the
  • 00:02:49
    better. Let me show you something that
  • 00:02:51
    will blow your mind. This is Billy. He
  • 00:02:53
    started investing $200 a month at 20
  • 00:02:56
    years old. And this is Phil. He didn't
  • 00:02:59
    start until he was 30, but to catch up,
  • 00:03:01
    he invested $300 a month. Now, let's
  • 00:03:04
    fast forward it to when they reach 60
  • 00:03:06
    and they both stopped investing. Now,
  • 00:03:09
    I'm going to give Phil a walking
  • 00:03:11
    stick and I'm going to give Billy some
  • 00:03:14
    glasses. Right, that's better. Now,
  • 00:03:17
    let's add up how much each one saved.
  • 00:03:20
    Billy put in $200 per month for 40
  • 00:03:23
    years. So, that's a total of
  • 00:03:27
    $96,000. However, Phil put in $300 per
  • 00:03:31
    month for 30 years, which is a total of
  • 00:03:36
    $108,000. So, Phil ended up with more
  • 00:03:39
    money, right? Because he saved more each
  • 00:03:41
    month. Well, not exactly because they
  • 00:03:44
    were investing instead of just saving.
  • 00:03:46
    If we assume an average annual return of
  • 00:03:48
    10%, which is the average return of the
  • 00:03:50
    S&P 500 over the last 100 years, then
  • 00:03:54
    the numbers start to look a little bit
  • 00:03:56
    different. Phil's investment would be
  • 00:03:58
    worth
  • 00:04:03
    $678,146. Not bad. Whereas Billy's
  • 00:04:06
    investment would be worth a
  • 00:04:08
    staggering
  • 00:04:13
    $1,264,816. How crazy is that? Billy
  • 00:04:16
    invested $12,000 less but ended up with
  • 00:04:20
    nearly
  • 00:04:21
    $600,000 more. All because he started
  • 00:04:23
    earlier. That's the power of compound
  • 00:04:26
    growth. That's why you should start now,
  • 00:04:28
    even if it's small, because waiting will
  • 00:04:30
    cost you more than you think. But how
  • 00:04:32
    can you actually get started? Well, step
  • 00:04:34
    one is to select your growth assets.
  • 00:04:37
    There are loads of ways to grow your
  • 00:04:38
    money, but not all of them carry the
  • 00:04:40
    same risk or reward. So, I like to think
  • 00:04:43
    of them as a scale from relatively safe
  • 00:04:45
    and steady to high risk, high reward. At
  • 00:04:48
    the lower risk end, we've got index
  • 00:04:51
    funds. Honestly, this is where most
  • 00:04:54
    people should start. You're not trying
  • 00:04:56
    to pick winners. You're just buying a
  • 00:04:58
    slice of the whole market. Like the S&P
  • 00:05:00
    500 I mentioned before. You don't need
  • 00:05:02
    to check charts or time the market. You
  • 00:05:05
    just let it sit there and grow quietly
  • 00:05:07
    in the background. Then there's real
  • 00:05:09
    estate. That could be rental property if
  • 00:05:12
    you've got the money or REITs if you
  • 00:05:13
    haven't. REIT lets you invest in real
  • 00:05:15
    estate without buying a property. It's
  • 00:05:17
    kind of like buying a small share in a
  • 00:05:19
    building with a bunch of other people.
  • 00:05:21
    In the middle is skills. Learning a
  • 00:05:24
    skill that makes you money is hands down
  • 00:05:26
    the fastest return on investment you'll
  • 00:05:28
    ever see. I'm talking about things like
  • 00:05:30
    copywriting, editing, sales, coding,
  • 00:05:33
    anything you can actually use to bring
  • 00:05:35
    in income. Unlike stocks or property, no
  • 00:05:38
    one can take it away from you. However,
  • 00:05:40
    it does take more time to learn and
  • 00:05:42
    that's why it's higher up the risk scale
  • 00:05:43
    than the other two. Further up, we've
  • 00:05:46
    got online businesses. Stuff like
  • 00:05:48
    dropshipping and selling digital
  • 00:05:50
    products. These can pay off big, but
  • 00:05:52
    they take a lot of effort and you've got
  • 00:05:54
    to be ready to fail a few times before
  • 00:05:56
    you find your feet. Then we get to
  • 00:05:58
    individual stocks. I know it's tempting
  • 00:06:01
    to try and pick the next Tesla, but
  • 00:06:03
    unless you've done your homework and you
  • 00:06:05
    really know what you're doing, you're
  • 00:06:06
    basically just guessing. So, if you're
  • 00:06:08
    going to do it without learning the
  • 00:06:10
    specifics, keep it small and treat it
  • 00:06:12
    like a hobby, not your main strategy.
  • 00:06:15
    And right up the top is alternative
  • 00:06:17
    investments. I'm talking Bitcoin,
  • 00:06:20
    Ethereum, NFTts, gold, wine, sneakers,
  • 00:06:23
    you name it. Can you make money with
  • 00:06:26
    these? Absolutely. Can you lose it
  • 00:06:28
    overnight? Also, absolutely. I've played
  • 00:06:31
    around with some of these, but I never
  • 00:06:33
    risk more than I'm willing to lose.
  • 00:06:35
    These are your moonshots. Fun to try,
  • 00:06:37
    but not where you build long-term
  • 00:06:39
    wealth. So, if I were you, I'd start
  • 00:06:41
    with the stuff that actually builds a
  • 00:06:43
    foundation, which are index funds and
  • 00:06:45
    high income skills. Then as you grow
  • 00:06:48
    more confident, you can start dabbling
  • 00:06:50
    with the rest. So now you know what to
  • 00:06:52
    invest in. Now we've got to talk about
  • 00:06:54
    how to invest. Because if you're doing
  • 00:06:56
    it through the wrong kind of account,
  • 00:06:57
    you could be handing over thousands in
  • 00:06:59
    unnecessary tax without even realizing
  • 00:07:02
    it. That's why step two is to set up tax
  • 00:07:05
    advantaged accounts. Right, let me show
  • 00:07:07
    you the smart way to legally save as
  • 00:07:10
    much money as possible. Before we dive
  • 00:07:11
    in, remember I'm not a financial
  • 00:07:14
    adviser. I'm just sharing what I've
  • 00:07:16
    personally done over the years. Okay,
  • 00:07:17
    let's start with the UK. One of the best
  • 00:07:21
    options is the stocks and shares ISA.
  • 00:07:24
    You can invest up to £20,000 a year and
  • 00:07:27
    anything you earn is tax-free. You can
  • 00:07:30
    set one up on platforms like Trading
  • 00:07:32
    212. All you have to do is select the
  • 00:07:34
    stocks and shares ISA when you sign up.
  • 00:07:36
    Since I was planning to talk about
  • 00:07:38
    Trading 212 anyway, I reached out to see
  • 00:07:40
    if they'd be interested in sponsoring
  • 00:07:42
    this portion of the video. They agreed
  • 00:07:44
    and are also giving away a free
  • 00:07:46
    fractional share worth up to £100 to
  • 00:07:49
    anyone that uses the code Tilbury when
  • 00:07:51
    they create an account. You can also
  • 00:07:53
    invite your friends and once they fund
  • 00:07:55
    their accounts, you'll both get a free
  • 00:07:57
    fractional share. If you're working a 9
  • 00:07:59
    to5, you've probably got access
  • 00:08:01
    to a workplace pension. Usually, you'll
  • 00:08:05
    put in 5% and your employer will match
  • 00:08:07
    with 3%. That's basically free money.
  • 00:08:11
    You don't pay any tax on the money it
  • 00:08:12
    earns while it's growing. You only pay
  • 00:08:14
    tax when you take it out later on. If
  • 00:08:17
    you're in the US, your setup's a little
  • 00:08:19
    bit different. The Roth IRA is one of
  • 00:08:22
    the best accounts you can open. You
  • 00:08:24
    invest money you've already paid tax on,
  • 00:08:26
    but every penny it earns grows
  • 00:08:28
    completely tax-free. And when you
  • 00:08:30
    retire, you can take it out with zero
  • 00:08:33
    tax. The limit on this account is $7,000
  • 00:08:36
    a year if you're under 50. Even
  • 00:08:38
    billionaires use this account. Peter
  • 00:08:40
    Thiel, one of the guys behind PayPal,
  • 00:08:43
    reportedly turned his Roth IRA into over
  • 00:08:46
    $5 billion. He did this by investing in
  • 00:08:49
    early stage high growth companies,
  • 00:08:52
    including PayPal and Facebook, which
  • 00:08:54
    then increased in value significantly.
  • 00:08:56
    Then there's the 401k, which is
  • 00:08:59
    basically the US version of a pension.
  • 00:09:02
    The money you put in comes out of your
  • 00:09:04
    paycheck before tax. It also grows over
  • 00:09:07
    time without being taxed while it's
  • 00:09:09
    invested. And if your employer offers a
  • 00:09:11
    match, definitely take it. Now, I know a
  • 00:09:13
    lot of you aren't in the UK or USA, so
  • 00:09:16
    here's a list of all the tax advantage
  • 00:09:18
    accounts I could find. Hopefully, you
  • 00:09:21
    can find an account in this list that
  • 00:09:22
    lets you take advantage of the tax
  • 00:09:24
    savings your country offers you. The
  • 00:09:26
    problem is lots of people open up these
  • 00:09:28
    accounts, put their money in every
  • 00:09:30
    month, and don't actually invest in
  • 00:09:32
    anything. That brings us on to step
  • 00:09:36
    three, actually start investing. All
  • 00:09:38
    right, so now you've picked your growth
  • 00:09:39
    assets and you've set up your account.
  • 00:09:41
    Whether you're on Trading 212, Vanguard,
  • 00:09:44
    or something else, it's time to actually
  • 00:09:47
    put your money to work. The best thing
  • 00:09:48
    you can do is set up a monthly transfer
  • 00:09:50
    that goes straight from your bank
  • 00:09:52
    account into your investment platform,
  • 00:09:55
    ideally on payday. That way, you never
  • 00:09:57
    even see the money sitting in your
  • 00:09:59
    account and get tempted to spend it.
  • 00:10:01
    Once it lands, you don't need to mess
  • 00:10:02
    about with charts or try to time the
  • 00:10:04
    market. Just look for some index funds.
  • 00:10:07
    One of the most popular methods is to
  • 00:10:09
    build a free fund portfolio. The first
  • 00:10:11
    fund is normally a US stock index fund,
  • 00:10:14
    which basically invests in lots of
  • 00:10:16
    US-based companies like Apple and
  • 00:10:17
    Amazon, for example. The second fund is
  • 00:10:20
    an international stock index fund, which
  • 00:10:22
    is similar to the US-based one, but
  • 00:10:24
    instead covers companies outside the US.
  • 00:10:27
    And the final fund is something called a
  • 00:10:29
    bond fund, which helps provide stability
  • 00:10:31
    as they're generally less volatile than
  • 00:10:33
    stocks and can help smooth out the ups
  • 00:10:35
    and downs of the market. Let me show you
  • 00:10:37
    how to set something like this up on
  • 00:10:39
    Trading 212. If you haven't already
  • 00:10:41
    signed up, then I'll leave a link in the
  • 00:10:43
    description. If you've already signed up
  • 00:10:44
    within the last 10 days, you can head
  • 00:10:46
    over to the promo code section of
  • 00:10:48
    Trading 212 and enter the code Tilbury
  • 00:10:51
    to get a free fractional share worth up
  • 00:10:54
    to £100. This is a nice boost to get you
  • 00:10:57
    started with investing. Then go over to
  • 00:10:59
    pies and then click the plus icon. Now
  • 00:11:02
    you can select whatever stocks you want
  • 00:11:04
    to include in your pie. for our US stock
  • 00:11:06
    market fund. Let's search for the S&P
  • 00:11:10
    500. This Vanguard one should do nicely.
  • 00:11:13
    If you're based in the US, then you can
  • 00:11:15
    also pick the Vanguard Total Stock
  • 00:11:18
    Market Index Fund known as the VT Sachs.
  • 00:11:21
    This fund is like owning a tiny piece of
  • 00:11:23
    500 of the biggest most famous companies
  • 00:11:26
    in America like Apple, Amazon, and
  • 00:11:29
    Coca-Cola. By the way, look out for the
  • 00:11:31
    terms accumulation or distribution in
  • 00:11:33
    the brackets. Personally, I always go
  • 00:11:36
    with accumulation as it reinvests your
  • 00:11:38
    dividends back into the stock
  • 00:11:40
    automatically. Then let's go and search
  • 00:11:42
    for our next one which is our
  • 00:11:44
    international fund. For this, let's
  • 00:11:46
    select iShares MSCI World UCITS ETF with
  • 00:11:51
    the ticker IWDA and tap add to PI. This
  • 00:11:56
    fund is like having a collection of
  • 00:11:57
    companies from all around the world. It
  • 00:12:00
    includes big businesses in places like
  • 00:12:02
    Europe, Japan, and Canada. Now for our
  • 00:12:04
    bond fund. Let's search for iShares USD
  • 00:12:08
    Treasury Bond 7 to 10 years. UCITS ETF
  • 00:12:13
    with the ticker IBTM and tap add to PI.
  • 00:12:17
    This fund is like lending money to the
  • 00:12:19
    US government. They promise to pay you
  • 00:12:21
    back with a little extra which helps you
  • 00:12:23
    keep your money safe and steady even if
  • 00:12:25
    stocks go up and down. Right now those
  • 00:12:27
    are added. We can click the arrow to go
  • 00:12:30
    to the next step. On this page, you can
  • 00:12:33
    adjust the percentage allocation of your
  • 00:12:35
    money to each fund. If you go with an
  • 00:12:37
    aggressive approach, this involves
  • 00:12:39
    investing more in stocks, which can grow
  • 00:12:41
    faster, but can also go up and down a
  • 00:12:43
    lot. For example, you might choose an
  • 00:12:46
    investment mix where 90% of your money
  • 00:12:48
    is in stocks and only 10% is in bonds.
  • 00:12:51
    This setup is the potential for big
  • 00:12:53
    returns, but also comes with sharp ups
  • 00:12:55
    and downs in the short term. If you
  • 00:12:57
    prefer slightly less risk but still want
  • 00:13:00
    a chance for high returns, then a
  • 00:13:02
    slightly less aggressive approach might
  • 00:13:04
    suit you better. With around 80% in
  • 00:13:06
    stocks and 20% in bonds, don't get put
  • 00:13:09
    off by the terms aggressive. It's all
  • 00:13:11
    down to your age. As a general rule of
  • 00:13:13
    thumb, the older you are, the more bonds
  • 00:13:16
    you should have. So, let's make the S&P
  • 00:13:18
    500 60%. The isshares world fund 30% and
  • 00:13:24
    the bond fund 10%. And click next and
  • 00:13:27
    then auto invest. This value projection
  • 00:13:31
    is really awesome as it shows you how
  • 00:13:33
    much money you could make based on
  • 00:13:35
    historical averages. Of course, when you
  • 00:13:37
    invest, you can get back less than you
  • 00:13:39
    invested, as investments can rise and
  • 00:13:41
    fall, but it's still a great way to get
  • 00:13:43
    an idea of how much you could make based
  • 00:13:45
    on data back projections. Once your
  • 00:13:47
    investing is automated, your job is
  • 00:13:49
    simple. Stop fiddling and go and make
  • 00:13:52
    more money. Because the truth is, the
  • 00:13:54
    people who build wealth aren't the ones
  • 00:13:56
    picking the fanciest stocks. They're the
  • 00:13:58
    ones consistently putting in more over
  • 00:14:00
    time. That means your focus should now
  • 00:14:03
    be on increasing your income so you can
  • 00:14:05
    increase your investments. This is where
  • 00:14:07
    the skill building I talked about in
  • 00:14:09
    step one really starts to come into
  • 00:14:11
    play. If you haven't yet, learn
  • 00:14:13
    something valuable. Do it as a side
  • 00:14:15
    hustle. Bring in more cash. Then feed it
  • 00:14:18
    straight back into your
  • 00:14:23
    investments. The next 15% of your income
  • 00:14:26
    should be going towards stability. This
  • 00:14:28
    is the 15% that keeps you in the game. A
  • 00:14:31
    lot of people don't realize that not all
  • 00:14:33
    your money should be thrown into growth
  • 00:14:35
    investments or spent. Some of it needs
  • 00:14:37
    to be set aside to protect your
  • 00:14:39
    progress. I wish someone had told me
  • 00:14:40
    that when I was younger because I had to
  • 00:14:43
    learn it the hard way. I didn't grow up
  • 00:14:45
    around money. So, when I turned 18 and
  • 00:14:47
    needed a car to get to work, I didn't
  • 00:14:49
    have any savings set aside. So, I did
  • 00:14:52
    what most people do. I took out a loan
  • 00:14:54
    and bought myself a solid little German
  • 00:14:56
    whip, a VW Golf. I even got a new stereo
  • 00:15:00
    with the extra cash the bank gave me.
  • 00:15:02
    And for about 3 months, I felt like I
  • 00:15:05
    was on top of the world. Then out of
  • 00:15:06
    nowhere, the engine blew up. I had no
  • 00:15:09
    backup, no safety net, and no clue what
  • 00:15:12
    to do. And on top of all this, if I
  • 00:15:14
    didn't get the car fixed, I'd lose my
  • 00:15:16
    job. So, I borrowed even more, which
  • 00:15:18
    piled on more debt, more pressure, and
  • 00:15:21
    more stress. To me, that car didn't just
  • 00:15:24
    break down. It broke my finances and it
  • 00:15:26
    set me back a whole year. If I just had
  • 00:15:29
    15% tucked away for stability, I'd have
  • 00:15:32
    been in a completely different position.
  • 00:15:34
    Most people don't have a money problem.
  • 00:15:36
    They have a stability problem. One
  • 00:15:38
    unexpected bill and it all falls apart.
  • 00:15:41
    Even if you are investing, you'd be
  • 00:15:43
    forced to sell your investments at a bad
  • 00:15:45
    time, which may lead to a loss. That's
  • 00:15:48
    why you need a margin for error built
  • 00:15:49
    into your life. Let's get into how you
  • 00:15:52
    do it. Step one is to calculate your
  • 00:15:55
    stability fund. To do this, you first
  • 00:15:57
    need to list out your core expenses.
  • 00:15:59
    These are things like your groceries,
  • 00:16:02
    rent, utilities, transportation, and any
  • 00:16:05
    essential services like your internet
  • 00:16:07
    connection, which you might need for
  • 00:16:09
    work, not for Netflix. All of those
  • 00:16:11
    things combined should give you a total.
  • 00:16:13
    That number is called your monthly
  • 00:16:16
    baseline. Let's say that adds up to
  • 00:16:20
    $1,500 per month. Now take that number
  • 00:16:23
    and multiply it by five months. This
  • 00:16:26
    will equal the ideal stability fund that
  • 00:16:29
    you should be aiming to save. So in this
  • 00:16:31
    example, that should be
  • 00:16:36
    $7,500. So each month when you get your
  • 00:16:38
    paycheck, 15% of your wages should be
  • 00:16:41
    going towards building up this figure.
  • 00:16:43
    You might be thinking this is quite
  • 00:16:44
    extreme and I admit it is on the more
  • 00:16:47
    cautious side. However, I know from
  • 00:16:49
    experience that when life hits, it
  • 00:16:51
    usually comes all at once without
  • 00:16:53
    warning. So, if you only have a couple
  • 00:16:55
    of months saved up, then you won't be as
  • 00:16:57
    bulletproof. Step two is to store it
  • 00:17:00
    correctly. Now that you've worked out
  • 00:17:02
    your stability fund, don't make the
  • 00:17:04
    mistake of parking it in the wrong place
  • 00:17:06
    because where you store this money is
  • 00:17:08
    just as important as having it in the
  • 00:17:10
    first place. And for that reason, I've
  • 00:17:12
    got three rules I always stick to.
  • 00:17:14
    Firstly, it must be easy to access. This
  • 00:17:18
    money should be available within 24
  • 00:17:20
    hours max. So, don't lock it up in some
  • 00:17:22
    account that penalizes you for
  • 00:17:24
    withdrawing early or won't let you touch
  • 00:17:26
    it for 5 years in return for a bit more
  • 00:17:28
    interest. I've seen people lose their
  • 00:17:30
    jobs and still not be able to access
  • 00:17:32
    their stability fund. That defeats the
  • 00:17:34
    whole point. When things go wrong, you
  • 00:17:37
    need speed, not some nonsense waiting
  • 00:17:39
    period. Secondly, it must be zero risk.
  • 00:17:43
    This is not money you invest, gamble, or
  • 00:17:46
    chase returns with. Whatever you do, and
  • 00:17:48
    I mean whatever you do, do not put your
  • 00:17:51
    emergency fund into the stock market.
  • 00:17:54
    Not even the safe stuff. Because when an
  • 00:17:56
    emergency hits, the market might be
  • 00:17:58
    down. The same goes for crypto,
  • 00:18:00
    long-term bonds, or anything else that's
  • 00:18:02
    meant to grow over years. Thirdly, it
  • 00:18:05
    must always earn. Although this isn't
  • 00:18:07
    your growth pot, that doesn't mean it
  • 00:18:09
    should sit in a dead-end account doing
  • 00:18:11
    nothing. You want it somewhere that
  • 00:18:12
    earns a bit while it waits without any
  • 00:18:15
    risk. This is because if you leave it
  • 00:18:17
    somewhere with zero interest, then it
  • 00:18:19
    will be eaten away by inflation as money
  • 00:18:21
    gets less valuable over time. That's
  • 00:18:23
    where high yield savings accounts come
  • 00:18:25
    in. As of filming this video, you can
  • 00:18:27
    get savings accounts with 4 to 5%
  • 00:18:30
    interest rates and with no penalties if
  • 00:18:32
    you need to dip into it. I'll leave some
  • 00:18:34
    banks in the description. I'd recommend
  • 00:18:36
    checking out SoFi, Ally, and Marcus by
  • 00:18:39
    Goldman Sachs as they're offering decent
  • 00:18:41
    rates and they're FDIC insured so your
  • 00:18:44
    money's safe. Step three is to stack it
  • 00:18:47
    quickly. Most people think it takes
  • 00:18:48
    years to scrape together a decent
  • 00:18:50
    stability fund, but if you play it
  • 00:18:52
    smart, it doesn't need to take anywhere
  • 00:18:55
    near that long. When I was building up
  • 00:18:56
    my savings, I used three tactics that
  • 00:18:59
    stacked on top of each other. Using them
  • 00:19:01
    all together helped me really accelerate
  • 00:19:03
    how fast I could save. Tactic one is
  • 00:19:06
    called the paycheck sweep. This is when
  • 00:19:08
    you take 15% of your income the second
  • 00:19:11
    it lands and move it straight into your
  • 00:19:13
    emergency fund. You can automate this
  • 00:19:16
    with a direct debit or scheduled
  • 00:19:18
    transfer. So, it's completely handsoff,
  • 00:19:20
    just like we did with the 25% that goes
  • 00:19:23
    towards growth. Tactic two is the
  • 00:19:25
    replacement promise. This is a promise
  • 00:19:28
    you make to yourself that if you dip
  • 00:19:29
    into your stability fund, you
  • 00:19:31
    immediately replace it. Let's say you
  • 00:19:33
    knock off your wing mirror and it costs
  • 00:19:35
    $250 to fix. That's fine. That's what
  • 00:19:38
    the fund is for. But the next time you
  • 00:19:41
    get paid, you top that $250 straight
  • 00:19:44
    back up like it was never gone. Tactic
  • 00:19:46
    three is the save by spending hack. This
  • 00:19:49
    one might sound a little bit crazy, but
  • 00:19:51
    you can do it by using roundup apps.
  • 00:19:54
    These round every purchase up to the
  • 00:19:56
    nearest dollar and drop the difference
  • 00:19:57
    into your savings. So, if you spend
  • 00:20:00
    $360, it rounds up to $4 and puts that
  • 00:20:04
    40 cents away. It sounds small, but it
  • 00:20:06
    adds up fast and you won't even notice
  • 00:20:08
    it. The other way to do this is with
  • 00:20:10
    cash back. So, if you're using a
  • 00:20:12
    cashback credit card and paying it off
  • 00:20:14
    in full every month, then take those
  • 00:20:16
    rewards and put them straight into your
  • 00:20:18
    stability fund. Once your stability fund
  • 00:20:20
    is fully stocked, you've got two
  • 00:20:21
    options. You can ether roll that money
  • 00:20:23
    into growth or you can shift it into the
  • 00:20:26
    final 10% which we'll talk about
  • 00:20:31
    later. The next 50% of your income
  • 00:20:34
    should be going towards your essentials.
  • 00:20:37
    This is the 50% that feeds you, not your
  • 00:20:40
    ego. Surprisingly, over 60% of Americans
  • 00:20:43
    earning over $100,000 a year still live
  • 00:20:47
    paycheck to paycheck, as most are too
  • 00:20:49
    caught up in trying to look rich instead
  • 00:20:52
    of actually becoming rich. This shows
  • 00:20:54
    that you can be on a great salary and
  • 00:20:55
    still feel broke every month. Because
  • 00:20:58
    it's not about how much you earn, it's
  • 00:21:00
    about how much you waste. Let me show
  • 00:21:02
    you what I mean. This was me, aged 20,
  • 00:21:05
    and that's my mate. On the surface, he
  • 00:21:07
    looked like he had everything. Designer
  • 00:21:09
    shirt, expensive watch, and was always
  • 00:21:12
    outspending. I was the opposite. Backy
  • 00:21:15
    top, cheap watch, just the basics. Sure,
  • 00:21:18
    my fashion sense could have been better.
  • 00:21:20
    I could have at least picked up some
  • 00:21:21
    inexpensive smart clothes, but I was
  • 00:21:24
    young, so cut me a bit of slack. But
  • 00:21:26
    here's what people didn't see. He had
  • 00:21:31
    $43.20 in his account and a few credit
  • 00:21:34
    card payments overdue. whereas I
  • 00:21:37
    had $1,000 plus quietly sitting in
  • 00:21:40
    investments and a decent stability fund.
  • 00:21:43
    I had learned from my experience with my
  • 00:21:44
    car loan disaster and I'd worked
  • 00:21:46
    extremely hard to build my money back up
  • 00:21:49
    which meant cutting out any unnecessary
  • 00:21:51
    spending and looking like this. Although
  • 00:21:53
    this might not seem like a lot, remember
  • 00:21:55
    money was worth a lot more back then.
  • 00:21:57
    This $1,000 was a star and that's the
  • 00:22:00
    part most people miss. Wealth isn't what
  • 00:22:02
    you see, it's what you don't see. I get
  • 00:22:04
    it though. It's easy to justify the
  • 00:22:07
    upgrades by saying things like, "I need
  • 00:22:09
    a safer car. This new house is closer to
  • 00:22:12
    work, and I deserve a nice meal out, but
  • 00:22:14
    that's exactly how lifestyle creep
  • 00:22:16
    starts." So, how can you keep this under
  • 00:22:19
    control? Well, step one is to get clear
  • 00:22:23
    on your essentials. A lot of people
  • 00:22:24
    aren't going to like this one because
  • 00:22:26
    what many people consider essentials
  • 00:22:28
    nowadays are actually just luxuries.
  • 00:22:30
    Essentials are the things that keep you
  • 00:22:33
    alive and functioning. That means your
  • 00:22:35
    rent or mortgage, groceries, utilities,
  • 00:22:39
    transport, insurance, and clothes, not
  • 00:22:42
    the latest designer drops, just what you
  • 00:22:45
    absolutely need. Now, let's talk about
  • 00:22:47
    what doesn't count. Takeout isn't
  • 00:22:50
    essential. Neither is the Amazon
  • 00:22:52
    subscription you forgot about. The gym
  • 00:22:54
    you haven't visited since January, or
  • 00:22:57
    the stack of streaming services you keep
  • 00:22:59
    meeting in the council, and the list
  • 00:23:00
    goes on. If you're using a gym, that's a
  • 00:23:03
    different story. But so many people sign
  • 00:23:05
    up for stuff they never use. That's why
  • 00:23:07
    one of the easiest things you can do to
  • 00:23:09
    free up money is to go through your bank
  • 00:23:11
    statements and cancel anything you're
  • 00:23:14
    not using. Just think to yourself, if
  • 00:23:16
    it's not helping you live, work, or stay
  • 00:23:18
    healthy, it probably doesn't belong in
  • 00:23:20
    your 50%. So why do I recommend capping
  • 00:23:23
    it at 50%. Well, because the average
  • 00:23:25
    person is already spending 60 to 70% of
  • 00:23:29
    their income on what they think are
  • 00:23:31
    essentials. So by locking in your
  • 00:23:33
    lifestyle at 50%, it forces you to
  • 00:23:36
    actually eliminate what you don't need.
  • 00:23:38
    It also changes your mindset from
  • 00:23:40
    wanting to spend more of what you earn
  • 00:23:42
    to wanting to earn more and increase
  • 00:23:44
    your income, which is always something
  • 00:23:46
    you should be doing. Step two is to
  • 00:23:48
    shrink the two key categories. So many
  • 00:23:51
    people talk about cutting out the little
  • 00:23:53
    expenses like Starbucks coffee.
  • 00:23:55
    Honestly, I'm guilty of saying this
  • 00:23:57
    myself. However, if you want to make the
  • 00:23:59
    biggest impact, then you first need to
  • 00:24:01
    focus on the two key categories. Let's
  • 00:24:03
    start with housing. For most people,
  • 00:24:06
    this is the biggest expense, but it
  • 00:24:08
    doesn't have to grow with your income.
  • 00:24:10
    Always
  • 00:24:12
    renegotiate your rent when the lease is
  • 00:24:15
    up. Most landlords would rather keep a
  • 00:24:17
    tenant than go through the hassle of
  • 00:24:18
    listing, cleaning, and showing the place
  • 00:24:21
    again. Even a small reduction or freeze
  • 00:24:24
    can save you thousands. If you want to
  • 00:24:26
    go further, think about
  • 00:24:28
    house hacking. That could mean renting
  • 00:24:31
    out a spare room, splitting a place with
  • 00:24:33
    mates, or even moving back with your
  • 00:24:35
    parents while you build your buffer. If
  • 00:24:37
    you can manage to limit housing to half
  • 00:24:39
    of your essentials fund, then that's a
  • 00:24:41
    pretty good place to be. Now, let's talk
  • 00:24:45
    about transport. Car payments are one of
  • 00:24:48
    the biggest wealth killers. People lease
  • 00:24:50
    brand new cars for the monthly status
  • 00:24:52
    hit and end up paying for years on a
  • 00:24:54
    depreciating liability. That's why I
  • 00:24:57
    always recommend buying used, reliable
  • 00:25:02
    cars that have seen the majority of
  • 00:25:04
    their depreciation, at least until your
  • 00:25:06
    income can support a nicer car. By that,
  • 00:25:08
    I don't mean if you can just about
  • 00:25:10
    afford it. It should be under half of
  • 00:25:12
    your essentials fund. In walkable or
  • 00:25:14
    city areas, you could even consider
  • 00:25:17
    getting rid of the car entirely as it
  • 00:25:20
    can free up hundreds of dollars per
  • 00:25:21
    month. Because it's not just the car
  • 00:25:23
    payments you save, but also the
  • 00:25:25
    insurance, maintenance, and parking
  • 00:25:27
    charges all added up. This can be a big
  • 00:25:30
    saving. Once you've got those two areas
  • 00:25:32
    under control, that brings me on to step
  • 00:25:35
    three. Use rules, not willpower. When
  • 00:25:39
    you're tired, stressed, or even just
  • 00:25:41
    bored, your willpower disappears. And
  • 00:25:44
    that's exactly why the top 1% don't rely
  • 00:25:46
    on it. Instead, they build systems that
  • 00:25:49
    make the right choices automatically.
  • 00:25:50
    When I was building my wealth, I had a
  • 00:25:53
    simple system that kept me on track.
  • 00:25:55
    Every time I was tempted to buy
  • 00:25:56
    something and wasn't sure if it was
  • 00:25:58
    essential, I'd run it through a few key
  • 00:26:00
    questions. These questions stopped me
  • 00:26:03
    from buying things I didn't need and
  • 00:26:04
    helped me stay focused on the bigger
  • 00:26:06
    goal. So, firstly, ask yourself, is this
  • 00:26:10
    an impulse purchase? If the answer is
  • 00:26:12
    no, then buy it. It's likely something
  • 00:26:15
    you've been thinking about for a while.
  • 00:26:17
    And if it fits into the essential
  • 00:26:19
    categories we discussed earlier, then
  • 00:26:21
    it's a no-brainer. However, if the
  • 00:26:23
    answer is yes, then it's time to use the
  • 00:26:26
    7-day rule. The trick behind this is
  • 00:26:29
    pausing for 7 days before you buy
  • 00:26:31
    anything. Then after those seven days
  • 00:26:33
    are up, ask yourself again if you still
  • 00:26:36
    want it. Most of the time, the answer
  • 00:26:38
    will be no. That's the funny thing about
  • 00:26:40
    waiting 7 days. You often forget all
  • 00:26:43
    about it as the excitement has faded and
  • 00:26:46
    it wasn't that important to begin with.
  • 00:26:48
    But if after 7 days you still want it,
  • 00:26:50
    it's time for the next question. Are you
  • 00:26:53
    buying for the brand or the value? If
  • 00:26:56
    the answer is the brand, then don't buy
  • 00:26:58
    it. You're likely being drawn in by
  • 00:27:00
    great marketing. If it's an essential,
  • 00:27:03
    then there will be an unbranded
  • 00:27:04
    alternative that will do the job just as
  • 00:27:06
    well, if not better. This is where most
  • 00:27:09
    people mess up. Wealthy people don't
  • 00:27:11
    throw money at brands because they like
  • 00:27:13
    the marketing. They really think about
  • 00:27:15
    the value. So, what does value really
  • 00:27:18
    mean? Well, if you buy a $60 pair of
  • 00:27:20
    boots and wear them a 100 times, that's
  • 00:27:22
    60 per wear. Good value. But if you buy
  • 00:27:25
    a $200 pair of designer trainers and
  • 00:27:28
    wear them twice, that's $100 per wear.
  • 00:27:31
    And going too cheap isn't smart either.
  • 00:27:33
    I mean, a $5 shirt that falls apart in
  • 00:27:36
    the wash is still a waste of money. So
  • 00:27:38
    don't chase brands, chase quality. So if
  • 00:27:40
    you answered value, that brings us on to
  • 00:27:43
    the final question. Will this improve
  • 00:27:45
    your life? If the answer is yes, a
  • 00:27:48
    conscious, intentional purchase, go
  • 00:27:51
    ahead. But if the answer is no, it's
  • 00:27:53
    probably just about impressing someone,
  • 00:27:55
    killing boredom, or chasing a dopamine
  • 00:27:57
    hit. It's not worth your money. Once you
  • 00:28:00
    go through this process a couple of
  • 00:28:01
    times, you'll be able to decide if
  • 00:28:03
    something's worth buying or not without
  • 00:28:05
    even consciously thinking about the
  • 00:28:07
    questions. They just get your mind
  • 00:28:08
    working in the right way. Remember, it
  • 00:28:11
    isn't about being tight. It's about
  • 00:28:13
    being
  • 00:28:16
    intentional. The last 10% of your income
  • 00:28:19
    should go towards rewards. This is the
  • 00:28:22
    10% that keeps you sane. Let's be
  • 00:28:24
    honest, money isn't just about growth,
  • 00:28:26
    stability, and essentials. you're
  • 00:28:28
    allowed to enjoy it, too. Most people
  • 00:28:30
    skip this entirely and then wonder why
  • 00:28:33
    saving feels so pointless. As I've
  • 00:28:35
    gotten older, I've realized it's the
  • 00:28:37
    little things that refuel you and remind
  • 00:28:39
    you why you're doing all this boring
  • 00:28:40
    money discipline stuff in the first
  • 00:28:42
    place. This is backed up by the facts.
  • 00:28:46
    92% of people say they overspend after
  • 00:28:49
    intensive saving sprints because saving
  • 00:28:52
    without joy starts to feel like a
  • 00:28:54
    punishment very quickly. And that's
  • 00:28:56
    exactly why this 10% exists. Not as an
  • 00:28:59
    excuse, it's a strategy. Kind of like
  • 00:29:02
    having a cheat meal. It's a thing that
  • 00:29:04
    makes your whole financial diet
  • 00:29:06
    comfortable and most importantly
  • 00:29:08
    sustainable. But to maximize its impact,
  • 00:29:10
    you have to be strategic with how you
  • 00:29:12
    use it. So step one is to make it
  • 00:29:15
    guilt-free. To make something
  • 00:29:17
    guilt-free, you have to see the value in
  • 00:29:19
    it. The truth is you can spend your 10%
  • 00:29:22
    on whatever you like. However, some
  • 00:29:24
    categories are more valuable than
  • 00:29:26
    others, which should make them more
  • 00:29:28
    guilt-free. The first category is
  • 00:29:30
    vacations, such as trips away or just
  • 00:29:33
    weekend getaways. This is valuable
  • 00:29:36
    because you're buying memories that last
  • 00:29:38
    forever. It's also a great way to
  • 00:29:40
    de-stress. When I was building up my
  • 00:29:42
    businesses in my younger years, I
  • 00:29:44
    completely ignored the importance of
  • 00:29:46
    vacations, which led me to becoming very
  • 00:29:49
    sick. The doctors diagnosed me with
  • 00:29:50
    stress induced shingles. They
  • 00:29:52
    recommended I took a vacation. And
  • 00:29:54
    that's when I went on my first ever ski
  • 00:29:56
    trip. I had a great time. Since then,
  • 00:29:59
    I've made it a priority to take a
  • 00:30:01
    vacation every year. Instead of seeing
  • 00:30:03
    it as a waste of time or money, I now
  • 00:30:05
    see it as an investment in my health
  • 00:30:07
    because it helps me stay sharp and more
  • 00:30:10
    importantly prevents me from burning out
  • 00:30:12
    again. Next is hobbies. This could be
  • 00:30:16
    painting, gaming, photography, flying
  • 00:30:18
    model aircraft. The list goes on. This
  • 00:30:21
    is valuable as it keeps you passionate.
  • 00:30:23
    You don't always do what you love for
  • 00:30:25
    work, so by doing it in your spare time,
  • 00:30:27
    it helps keep your spirits up so you can
  • 00:30:29
    work harder for longer. Next is nights
  • 00:30:32
    out, dinner, concerts, and experiences.
  • 00:30:36
    This is another thing I ignored in my
  • 00:30:37
    early years and it was a big mistake as
  • 00:30:40
    I ended up losing most of my friends.
  • 00:30:42
    Having a strong social network is so
  • 00:30:44
    important, especially nowadays. Finally,
  • 00:30:48
    we have gifts. Now, I'm not talking
  • 00:30:50
    about for yourself, but for your loved
  • 00:30:52
    ones. This is another one I overlooked.
  • 00:30:55
    You can see how most of the stuff I
  • 00:30:56
    teach in these videos comes from me
  • 00:30:58
    learning from my mistakes. Back when I
  • 00:31:00
    was focused on chasing my goals,
  • 00:31:02
    building businesses, and growing
  • 00:31:04
    investments, I often forgot birthdays
  • 00:31:06
    and special occasions. I was so locked
  • 00:31:08
    in on the future that I overlooked what
  • 00:31:11
    mattered in the present. The truth is, I
  • 00:31:13
    never really cared much about receiving
  • 00:31:15
    gifts. There's not much I wanted. But it
  • 00:31:18
    wasn't until I married my wife and we
  • 00:31:20
    started exchanging anniversary gifts
  • 00:31:22
    that I finally understood. Gifts aren't
  • 00:31:24
    about the item. They're about the
  • 00:31:26
    thought, the connection, and the
  • 00:31:28
    relationships they strengthen. Step two
  • 00:31:31
    is to preload the fun. I'd recommend
  • 00:31:34
    opening a separate bank account and call
  • 00:31:36
    it your joy jar. This doesn't have to be
  • 00:31:38
    with a new bank. You can actually have
  • 00:31:40
    multiple current accounts with the same
  • 00:31:42
    bank and have them all appear on your
  • 00:31:44
    mobile banking app, which makes things
  • 00:31:46
    very simple. Then set up an automatic
  • 00:31:49
    transfer of 10% of whatever you make to
  • 00:31:52
    be deposited into this account every
  • 00:31:54
    single month. So if you make $2,000,
  • 00:31:57
    send 200. If you make $10,000, send
  • 00:32:00
    a,000. It doesn't matter how much it is.
  • 00:32:02
    The percentage is what keeps it
  • 00:32:04
    sustainable. Just make sure you don't
  • 00:32:07
    cheat. You can't just top the account up
  • 00:32:09
    from growth, stability, or essentials
  • 00:32:11
    when it gets low. If you hit zero, you
  • 00:32:14
    have to wait until next month. When you
  • 00:32:16
    know this fun money is limited, you look
  • 00:32:18
    to maximize it in the best possible way.
  • 00:32:21
    This is exactly how you protect your
  • 00:32:23
    goals without feeling like you're
  • 00:32:25
    missing out every time your friends
  • 00:32:26
    suggest dinner or you pass something in
  • 00:32:29
    a shop that you really love. Step three
  • 00:32:31
    is to prioritize experiences. If you
  • 00:32:34
    don't have a particularly large joy jar
  • 00:32:36
    at the moment, please prioritize
  • 00:32:38
    experiences above anything else. People
  • 00:32:40
    always say to me in the comments, "What
  • 00:32:42
    are you saving for? Bro's going to die
  • 00:32:44
    with all his money." And I get it. From
  • 00:32:47
    the outside, it might look like I'm
  • 00:32:49
    depriving myself, but I'm really not. I
  • 00:32:51
    just spend differently to most people. I
  • 00:32:53
    don't need a garage full of cars or
  • 00:32:56
    shelves full of designer gear. That
  • 00:32:58
    stuff might look rich, but it doesn't
  • 00:33:00
    feel rich to me. My 10% goes on things
  • 00:33:02
    I'll actually remember, such as a ski
  • 00:33:04
    trip with my wife, a great day out at
  • 00:33:06
    Universal Studios with my son, meeting
  • 00:33:09
    you guys in New York, and a weekend away
  • 00:33:11
    golfing with my mates. So, there you
  • 00:33:14
    have it. The complete
  • 00:33:17
    25155010 rule. If you want to know how
  • 00:33:19
    to make $10,000 as a student, then I'm
  • 00:33:22
    going to leave that video right up
  • 00:33:23
    there. But don't click on it just yet.
  • 00:33:25
    Make sure to subscribe if you want to
  • 00:33:27
    grow your wealth. Okay, I'll see you
  • 00:33:29
    over
Tags
  • financial management
  • 255010 rule
  • investing
  • wealth building
  • stability fund
  • essential expenses
  • compound growth
  • tax-advantaged accounts
  • personal finance
  • money management