- 5 minutes ago
Please follow me. Thanks for watching!
Category
đĽ
Short filmTranscript
00:00Let me tell you something that will change your life if you let it sink in.
00:04The richest people in the world are 75% entrepreneurs, 15% investors, 7% inheritors
00:12of wealth, 3% athletes, entertainers, and artists, 0% employees who just earn a salary.
00:19So if you want to know how to manage your money like the 1%, you have to understand what those
00:24first four categories have in common. So let's think about it. Entrepreneurs own businesses,
00:30investors own assets, rich kids own trusts. Finally, athletes, entertainers, and artists
00:37own rare skills. So it's clear if you don't own something, you are what's owned. That's the
00:43secret most people miss. So how can you start owning things like the 1%? Well, you need to
00:48follow the 25-15-50-10 rule. I designed this rule so that anyone, no matter what their income,
00:55can manage their money like the top 1%. Because the truth is, it's not about how much money
01:01you make, it's about how you manage what you make. I'm not just some YouTuber, I've actually
01:06used this rule for decades, and it's enabled me to become a multi-millionaire, even though
01:11I started out with no money and no qualifications. So let's get into it.
01:18The first 25% of your income should be going towards growth. This is the 25% that works for
01:26you. By growth, I don't mean some kind of mindset nonsense about growing as a person with the
01:32power of meditation. I mean using this money to buy things that increase in value. You see,
01:37when most people get their paycheck, they pay the bills and then blow the rest on useless
01:41things they don't even remember buying. This is exactly why 99% of people are trapped owning
01:47nothing of value. The truth is, this is all by design. The system wants us rich for a week,
01:53then skint by the end of the month, waiting for the next payday. So we've got no breathing room,
01:58and then we're forced to work even harder next month just to keep up. This is effectively
02:03modern day slavery. Just think about it. Slaves used to work every day with no pay,
02:08but they got free food, shelter, and water. Today, people work nearly every day and get paid.
02:14However, their money is mostly spent on food, shelter, and water. The only thing that has
02:19changed is the illusion of freedom. Once you understand this, you can start fighting back
02:24by taking that first 25% of your income and putting it straight into assets. This is anything
02:30that grows in value over time and puts money in your pocket. The idea is that while you're out
02:34working, these assets that you own are working for you in the background. Eventually, these assets
02:40could even make you more money than your day job. You might think you don't have enough money to
02:44invest in assets. However, you need to find the money because the sooner you start, the better.
02:49Let me show you something that will blow your mind. This is Billy. He started investing $200 a month
02:55at 20 years old. And this is Phil. He didn't start until he was 30, but to catch up, he
03:01invested $300 a month.
03:04Now, let's fast forward it to when they reached 60 and they both stopped investing. Now, I'm going to give
03:10Phil a walking stick and I'm going to give Billy some glasses. Right, that's better. Now, let's add up
03:18how much each one saved. Billy put in $200 per month for 40 years. So that's a total of
03:27$96,000. However, Phil put in $300 per month for 30 years, which is a total of $108,000. So
03:37Phil
03:38ended up with more money, right? Because he saved more each month. Well, not exactly because they were
03:44investing instead of just saving. If we assume an average annual return of 10%, which is the average
03:50return of the S&P 500 over the last 100 years, then the numbers start to look a little bit
03:56different.
03:57Phil's investment will be worth $678,146. Not bad. Whereas Billy's investment would be worth a staggering
04:11$1,264,816. How crazy is that? Billy invested $12,000 less, but ended up with nearly $600,000 more,
04:22all because he started earlier. That's the power of compound growth. That's why you should start now,
04:28even if it's small, because waiting will cost you more than you think. But how can you actually get
04:33started? Well, step one is to select your growth assets. There are loads of ways to grow your money,
04:39but not all of them carry the same risk or reward. So I like to think of them as a
04:44scale from relatively
04:45safe and steady to high risk, high reward. At the lower risk end, we've got index funds. Honestly,
04:53this is where most people should start. You're not trying to pick winners. You're just buying a slice of
04:58the whole market. Like the S&P 500 I mentioned before. You don't need to check charts or time
05:04the market. You just let it sit there and grow quietly in the background. Then there's real
05:09estate. That could be rental property if you've got the money or REITs if you haven't. REITs lets you
05:14invest in real estate without buying a property. It's kind of like buying a small share in a building
05:19with a bunch of other people. In the middle is skills. Learning a skill that makes you money is hands
05:25down the fastest return on investment you'll ever see. I'm talking about things like copywriting,
05:31editing, sales, coding, anything you can actually use to bring in income. Unlike stocks or property,
05:37no one can take it away from you. However, it does take more time to learn. And that's why it's
05:42higher
05:43up the risk scale than the other two. Further up, we've got online businesses. Stuff like drop shipping
05:49and selling digital products. These can pay off big, but they take a lot of effort and you've got to
05:54be
05:54ready to fail a few times before you find your feet. Then we get to individual stocks. I know it's
06:00tempting to try and pick the next Tesla, but unless you've done your homework and you really know what
06:05you're doing, you're basically just guessing. So if you're going to do it without learning the specifics,
06:11keep it small and treat it like a hobby, not your main strategy. And right up the top is
06:17alternative investments. I'm talking Bitcoin, Ethereum, NFTs, gold, wine, sneakers, you name it.
06:24Can you make money with these? Absolutely. Can you lose it overnight? Also, absolutely. I've played around
06:31with some of these, but I never risk more than I'm willing to lose. These are your moonshots. Fun to
06:37try,
06:37but not where you build long-term wealth. So if I were you, I'd start with the stuff that actually
06:43builds
06:43a foundation, which are index funds and high income skills. Then as you grow more confident, you can start
06:49dabbling with the rest. So now you know what to invest in. Now we've got to talk about how to
06:54invest, because if you're doing it through the wrong kind of account, you could be handing over
06:58thousands in unnecessary tax without even realizing it. That's why step two is to set up tax advantaged
07:06accounts. Right. Let me show you the smart way to legally save as much money as possible. Before we
07:11dive in, remember, I'm not a financial advisor. I'm just sharing what I've personally done over the years.
07:17Okay. Let's start with the UK. One of the best options is the stocks and shares ISA. You can invest
07:25up to 20,000 pounds a year and anything you earn is tax free. You can set one up on
07:30platforms like
07:32Trading212. All you have to do is select the stocks and shares ISA when you sign up. Since I was
07:37planning
07:37to talk about Trading212 anyway, I reached out to see if they'd be interested in sponsoring this portion
07:43of the video. They agreed and are also giving away a free fractional share worth up to a hundred pound
07:48to anyone that uses the code Tilbury when they create an account. You can also invite your friends
07:54and once they fund their accounts, you'll both get a free fractional share. If you're working a nine to
07:59five, you've probably got access to a workplace pension. Usually you'll put in 5% and your employer
08:07will match with 3%. That's basically free money. You don't pay any tax on the money it earns while
08:13it's growing. You only pay tax when you take it out later on. If you're in the US, your setup's
08:19a
08:19little bit different. The Roth IRA is one of the best accounts you can open. You invest money you've
08:25already paid tax on, but every penny it earns grows completely tax free. And when you retire,
08:31you can take it out with zero tax. The limit on this account is $7,000 a year if you're
08:37under 50.
08:38Even billionaires use this account. Peter Til, one of the guys behind PayPal, reportedly turned his
08:44Roth IRA into over $5 billion. He did this by investing in early stage high growth companies,
08:52including PayPal and Facebook, which then increased in value significantly. Then there's the 401k,
08:58which is basically the US version of a pension. The money you put in comes out of your paycheck
09:04before tax. It also grows over time without being taxed while it's invested. And if your employer
09:10offers a match, definitely take it. Now, I know a lot of you aren't in the UK or USA. So
09:16here's a list
09:17of all the tax advantage accounts I could find. Hopefully you can find an account in this list that
09:22lets you take advantage of the tax savings your country offers you. The problem is lots of people
09:27to open up these accounts, put their money in every month, and don't actually invest in anything.
09:33That brings us on to step three, actually start investing. All right, so now you've picked your
09:39growth assets and you've set up your account, whether you're on Trading212, Vanguard, or something
09:45else, it's time to actually put your money to work. The best thing you can do is set up a
09:50monthly
09:50transfer that goes straight from your bank account into your investment platform, ideally on payday.
09:56That way, you never even see the money sitting in your account and get tempted to spend it. Once
10:01it lands, you don't need to mess about with charts or try to time the market, just look for some
10:06index
10:06funds. One of the most popular methods is to build a free fund portfolio. The first fund is normally a
10:12US stock index fund, which basically invests in lots of US-based companies like Apple and Amazon,
10:18for example. The second fund is an international stock index fund, which is similar to the US-based one,
10:24but instead covers companies outside the US. And the final fund is something called a bond fund,
10:30which helps provide stability as they're generally less volatile than stocks and can help smooth out
10:35the ups and downs of the market. Let me show you how to set something like this up on Trading212.
10:40If you haven't already signed up, then I'll leave a link in the description. If you've already signed
10:44up within the last 10 days, you can head over to the promo code section of Trading212,
10:50and enter the code Tilbury to get a free fractional share worth up to ÂŁ100. This is a nice boost
10:56to get
10:56you started with investing. Then go over to Pies and then click the plus icon. Now you can select
11:02whatever stocks you want to include in your pie. For our US stock market fund, let's search for the
11:08S&P 500. This Vanguard one should do nicely. If you're based in the US, then you can also pick
11:16the
11:16Vanguard total stock market index fund known as the VTSAX. This fund is like owning a tiny piece of
11:23500 of the biggest most famous companies in America, like Apple, Amazon and Coca-Cola. By the way,
11:30look out for the terms accumulation or distribution in the brackets. Personally, I always go with
11:36accumulation as it reinvest your dividends back into the stock automatically. Then let's go and search
11:42for our next one, which is our international fund. For this, let's select iShares MSCI World UCITS ETF,
11:51with the ticker IWDA and tap add to pie. This fund is like having a collection of companies from all
11:58around the world. It includes big businesses in places like Europe, Japan and Canada. Now for our bond fund,
12:05let's search for iShares USD treasury bonds seven to 10 years, UCITS ETF with the ticker IBTM and tap
12:16add to pie. This fund is like lending money to the US government. They promise to pay you back with
12:22a
12:22little extra, which helps you keep your money safe and steady, even if stocks go up and down. Right,
12:27now those are added, we can click the arrow to go to the next step. On this page, you can
12:33adjust the
12:33percentage allocation of your money to each fund. If you go with an aggressive approach,
12:38this involves investing more in stocks, which can grow faster, but can also go up and down a lot.
12:44For example, you might choose an investment mix where 90% of your money is in stocks and only 10
12:50% is
12:50in bonds. This set up has the potential for big returns, but also comes with sharp ups and downs in
12:56the short term. If you prefer slightly less risk, but still want a chance for higher returns,
13:01then a slightly less aggressive approach might suit you better with around 80% in stocks and 20%
13:08in bonds. Don't get put off by the terms aggressive. It's all down to your age. As a general rule
13:13of
13:13thumb, the older you are, the more bonds you should have. So let's make the S&P 500 60%,
13:20the iShares world fund 30% and the bond fund 10% and click next and then auto invest. This
13:30value
13:30projection is really awesome as it shows you how much money you could make based on historical
13:35averages. Of course, when you invest, you can get back less than you invested as investments can
13:40rise and fall, but it's still a great way to get an idea of how much you could make based
13:45on data
13:45back projections. Once your investing is automated, your job is simple. Stop fiddling and go and make
13:52more money because the truth is the people who build wealth aren't the ones picking the fanciest stocks.
13:58They're the ones consistently putting in more over time. That means your focus should now be on
14:03increasing your income so you can increase your investments. This is where the skill building I
14:08talked about in step one really starts to come into play. If you haven't yet, learn something valuable.
14:14Do it as a side hustle, bring in more cash, then feed it straight back into your investments.
14:23The next 15% of your income should be going towards stability. This is the 15% that keeps you
14:30in the
14:31game. A lot of people don't realize that not all your money should be thrown into growth investments
14:35or spent. Some of it needs to be set aside to protect your progress. I wish someone had told
14:40me that when I was younger because I had to learn it the hard way. I didn't grow up around
14:45money so
14:46when I turned 18 and needed a car to get to work I didn't have any savings set aside so
14:51I did what
14:52most people do. I took out a loan and bought myself a solid little German whip, a VW Golf. I
14:59even got a
14:59new stereo with the extra cash the bank gave me and for about three months I felt like I was
15:05on top of the
15:05world. Then out of nowhere the engine blew up. I had no backup, no safety net and no clue what
15:12to do and on
15:12top of all this if I didn't get the car fixed I'd lose my job. So I borrowed even more
15:18which piled on
15:19more debt, more pressure and more stress. To me that car didn't just break down it broke my finances and
15:26it set me back a whole year. If I just had 15% tucked away for stability I'd have been
15:32in a completely
15:33different position. Most people don't have a money problem they have a stability problem. One
15:38unexpected bill and it all falls apart. Even if you are investing you'd be forced to sell your
15:44investments at a bad time which may lead to a loss. That's why you need a margin for error built
15:49into
15:49your life. Let's get into how you do it. Step one is to calculate your stability fund. To do this
15:56you first need to list out your core expenses. These are things like your groceries, rent,
16:02utilities, transportation and any essential services like your internet connection which
16:08you might need for work not for Netflix. All of those things combined should give you a total.
16:13That number is called your monthly baseline. Let's say that adds up to $1,500 per month. Now take that
16:22number and multiply it by five months. This will equal the ideal stability fund that you should be aiming to
16:30save. So in this example that should be $7,500. So each month when you get your paycheck 15%
16:39of your
16:40wages should be going towards building up this figure. You might be thinking this is quite extreme
16:45and I admit it is on the more cautious side. However I know from experience that when life hits it
16:51usually
16:52comes all at once without warning. So if you only have a couple of months saved up then you won't
16:57be as
16:57bulletproof. Step two is to store it correctly. Now that you've worked out your stability fund don't
17:03make the mistake of parking it in the wrong place because where you store this money is just as
17:08important as having it in the first place. And for that reason I've got three rules I always stick to.
17:14Firstly it must be easy to access. This money should be available within 24 hours max so don't lock it
17:22up in
17:22some account that penalizes you for withdrawing early or won't let you touch it for five years in
17:27return for a bit more interest. I've seen people lose their jobs and still not be able to access their
17:32stability fund. That defeats the whole point. When things go wrong you need speed not some nonsense
17:39waiting period. Secondly it must be zero risk. This is not money you invest gamble or chase returns with.
17:47Whatever you do and I mean whatever you do do not put your emergency fund into the stock market.
17:54Not even the safe stuff because when an emergency hits the market might be down. The same goes for
17:59crypto, long-term bonds or anything else that's meant to grow over years. Thirdly it must always earn.
18:06Although this isn't your growth pot that doesn't mean it should sit in a dead-end account doing nothing.
18:11You want it somewhere that earns a bit while it waits without any risk. This is because if you
18:16leave it somewhere with zero interest then it will be eaten away by inflation as money gets less
18:22valuable over time. That's where high yield savings accounts come in. As a film in this video you can
18:27get savings accounts with four to five percent interest rates and with no penalties if you need
18:33to dip into it. I'll leave some banks in the description I'd recommend checking out SoFi,
18:37Ally and Marcus by Goldman Sachs as they're offering decent rates and they're FDIC insured so your money's
18:44safe. Step three is to stack it quickly. Most people think it takes years to scrape together
18:50a decent stability fund but if you play it smart it doesn't need to take anywhere near that long.
18:55When I was building up my savings I used three tactics that stacked on top of each other. Using
19:01them all together helped me really accelerate how fast I could save. Tactic one is called the paycheck
19:07sweep. This is when you take 15 percent of your income the second it lands and move it straight into
19:13your emergency fund. You can automate this with a direct debit or scheduled transfer so it's completely
19:19hands-off just like we did with the 25 percent that goes towards growth. Tactic two is the replacement
19:26promise. This is a promise you make to yourself that if you dip into your stability fund you immediately
19:32replace it. Let's say you knock off your wing mirror and it costs $250 to fix that's fine that's what
19:39the
19:39fund is for. But the next time you get paid you top that $250 straight back up like it was
19:45never gone.
19:45Tactic three is the save by spending hack. This one might sound a little bit crazy but you can do
19:52it
19:52by using roundup apps. These round every purchase up to the nearest dollar and drop the difference into
19:58your savings. So if you spend $3.60 it rounds up to $4 and puts that 40 cents away. It
20:05sounds small but
20:06it adds up fast and you won't even notice it. The other way to do this is with cashback. So
20:11if you're
20:11using a cashback credit card and paying it off in full every month then take those rewards and put them
20:17straight into your stability fund. Once your stability fund is fully stocked you've got two options. You can
20:22over roll that money into growth or you can shift it into the final 10 percent which we'll talk about
20:28later.
20:32The next 50 percent of your income should be going towards your essentials. This is the 50 percent that
20:38feeds you not your ego. Surprisingly over 60 percent of Americans earning over a hundred thousand dollars
20:45a year still live paycheck to paycheck as most are too caught up in trying to look rich instead of
20:52actually becoming rich. This shows that you can be on a great salary and still feel broke every month
20:57because it's not about how much you earn it's about how much you waste. Let me show you what I
21:03mean.
21:03This was me age 20 and that's my mate. On the surface he looked like he had everything. Designer shirt,
21:10expensive watch and was always out spending. I was the opposite. Baggy top, cheap watch, just the basics.
21:17Sure my fashion sense could have been better. I could have at least picked up some inexpensive
21:22smart clothes but I was young so cut me a bit of slack but here's what people didn't see. He
21:29had
21:3043 dollars and 20 cents in his account and a few credit card payments overdue whereas I had
21:37a thousand dollars plus quietly sitting in investments and a decent stability fund. I'd learned
21:43from my experience with my car loan disaster and I'd worked extremely hard to build my money back up which
21:49meant cutting out any unnecessary spending and looking like this. Although this might not seem
21:54like a lot remember money was worth a lot more back then. This one thousand dollars was a start
21:59and that's the part most people miss. Wealth isn't what you see it's what you don't see. I get it
22:05though
22:05it's easy to justify the upgrades by saying things like I need a safer car. This new house is closer
22:12to
22:12work and I deserve a nice meal out. But that's exactly how lifestyle creep starts. So how can you keep
22:18this
22:18under control? Well step one is to get clear on your essentials. A lot of people aren't going to like
22:25this one because what many people consider essentials nowadays are actually just luxuries. Essentials are
22:32the things that keep you alive and functioning. That means your rental mortgage, groceries, utilities,
22:38transport, insurance and clothes. Not the latest designer drops, just what you absolutely need. Now let's
22:47talk about what doesn't count. Takeout isn't essential. Neither is the Amazon subscription
22:53you forgot about. The gym you haven't visited since January or the stack of streaming services you keep
22:59meaning to counsel and the list goes on. If you're using a gym that's a different story but so many
23:04people sign up for stuff they never use. That's why one of the easiest things you can do to free
23:09up money
23:10is to go through your bank statements and counsel anything you're not using. Just think to yourself
23:15if it's not helping you live work or stay healthy it probably doesn't belong in your 50 percent. So
23:21why do I recommend capping it at 50 percent? Well because the average person is already spending 60
23:27to 70 percent of their income and what they think are essentials. So by locking in your lifestyle at 50
23:34it forces you to actually eliminate what you don't need. It also changes your mindset from wanting to spend
23:41more of what you earn to wanting to earn more and increase your income which is always something you
23:46should be doing. Step two is to shrink the two key categories. So many people talk about cutting out
23:52the little expenses like Starbucks coffee. Honestly I'm guilty of saying this myself however if you want
23:58to make the biggest impact then you first need to focus on the two key categories. Let's start
24:04with housing. For most people this is the biggest expense but it doesn't have to grow with your
24:10income. Always renegotiate your rent when the lease is up. Most landlords would rather keep a tenant than
24:17go through the hassle of listing, cleaning and showing the place again. Even a small reductional freeze can
24:24save you thousands. If you want to go further think about house hacking. That could mean renting out a spare
24:32room, splitting a place with mates or even moving back with your parents while you build your buffer.
24:37If you can manage to limit housing to half of your essentials fund then that's a pretty good place to
24:42be. Now let's talk about transport. Car payments are one of the biggest wealth killers. People lease
24:50brand new cars for the monthly status hit and end up paying for years on a depreciating liability.
24:56That's why I always recommend buying used reliable cars that have seen the majority of their depreciation
25:05at least until your income can support a nicer car. By that I don't mean if you can just about
25:10afford it.
25:11It should be under half of your essentials fund. In walkable or city areas you could even consider
25:17getting rid of the car entirely as it can free up hundreds of dollars per month. Because it's not just
25:23the car payments you save but also the insurance maintenance and parking charges all added up.
25:29This can be a big saving. Once you've got those two areas under control that brings me on to
25:35step three use rules not willpower. When you're tired stressed or even just bored your willpower
25:42disappears and that's exactly why the top one percent don't rely on it. Instead they build systems that
25:49make the right choices automatically. When I was building my wealth I had a simple system that
25:54kept me on track. Every time I was tempted to buy something and wasn't sure if it was essential
25:58I'd run it through a few key questions. These questions stopped me from buying things I didn't
26:04need and helped me stay focused on the bigger goal. So firstly ask yourself is this an impulse purchase?
26:11If the answer is no then buy it. It's likely something you've been thinking about for a while
26:17and if it fits into the essential categories we discussed earlier then it's a no-brainer. However,
26:23if the answer is yes then it's time to use the seven day rule. The trick behind this is pausing
26:29for seven days before you buy anything then after those seven days are up ask yourself again
26:35if you still want it. Most of the time the answer will be no. That's the funny thing about waiting
26:41seven days. You often forget all about it as the excitement has faded and it wasn't that important
26:47to begin with. But if after seven days you still want it it's time for the next question. Are you
26:53buying for the brand or the value? If the answer is the brand then don't buy it. You're likely being
27:00drawn in by great marketing. If it's an essential then there will be an unbranded alternative that will
27:05do the job just as well if not better. This is where most people mess up. Wealthy people don't
27:11throw money at brands because they like the marketing. They really think about the value. So
27:16what does value really mean? Well if you buy a $60 pair of boots and wear them 100 times that's
27:2260 cents per wear. Good value. But if you buy a $200 pair of designer trainers and wear them twice
27:29that's $100 per wear. And going too cheap isn't smart either. I mean a $5 shirt
27:35that falls apart in the wash is still a waste of money. So don't chase brands. Chase quality.
27:40So if you answered value that brings us on to the final question. Will this improve your life?
27:46If the answer is yes a conscious intentional purchase go ahead. But if the answer is no
27:52it's probably just about impressing someone, killing boredom or chasing a dopamine hit. It's not worth your
27:59money. Once you go through this process a couple of times you'll be able to decide if something's worth
28:03buying or not without even consciously thinking about the questions. They just get your mind
28:08working in the right way. Remember it isn't about being tight. It's about being intentional.
28:17The last 10% of your income should go towards rewards. This is the 10% that keeps you sane.
28:24Let's be honest. Money isn't just about growth, stability and essentials. You're allowed to enjoy it
28:29too. Most people skip this entirely and then wonder why saving feels so pointless. As I've gotten older
28:35I've realized it's the little things that refuel you and remind you why you're doing all this boring
28:40money discipline stuff in the first place. This is backed up by the facts. 92% of people say they
28:48overspend after intensive saving sprints because saving without joy starts to feel like a punishment very
28:55quickly. And that's exactly why this 10% exists. Not as an excuse. It's a strategy. Kind of like having
29:02a cheat meal. It's the thing that makes your whole financial diet comfortable and most importantly
29:07sustainable. But to maximize its impact you have to be strategic with how you use it. So step one is
29:15to
29:15make it guilt free. To make something guilt free you have to see the value in it. The truth is
29:20you can spend
29:21your 10% on whatever you like. However some categories are more valuable than others which
29:27should make them more guilt free. The first category is vacations such as trips away or just weekend
29:34getaways. This is valuable because you're buying memories that last forever. It's also a great way
29:40to de-stress. When I was building up my businesses in my younger years I completely ignored the importance
29:46of vacations which led me to becoming very sick. The doctors diagnosed me with stress induced shingles.
29:52They recommended I took a vacation and that's when I went on my first ever ski trip. I had a
29:57great time.
29:58Since then I've made it a priority to take a vacation every year. Instead of seeing it as a waste
30:04of time
30:04or money I now see it as an investment in my health because it helps me stay sharp and more
30:10importantly
30:10prevents me from burning out again. Next is hobbies. This could be painting, gaming, photography, flying
30:18model aircraft, the list goes on. This is valuable as it keeps you passionate. You don't always do what
30:24you love for work so by doing it in your spare time it helps keep your spirits up so you
30:29can work harder
30:30for longer. Next is nights out. Dinner, concerts and experiences. This is another thing I ignored in my
30:37early years and it was a big mistake as I ended up losing most of my friends. Having a strong
30:43social network
30:43is so important especially nowadays. Finally we have gifts. Now I'm not talking about for yourself
30:51but for your loved ones. This is another one I overlooked. You can see how most of the stuff I
30:56teach in these
30:57videos comes from me learning from my mistakes. Back when I was focused on chasing my goals, building businesses
31:03and growing investments. I often forgot birthdays and special occasions. I was so locked in on the future
31:09that I overlooked what mattered in the present. The truth is I never really cared much about receiving
31:15gifts. There's not much I wanted but it wasn't until I married my wife and we started exchanging
31:21anniversary gifts that I finally understood. Gifts aren't about the item. They're about the thought,
31:26the connection and the relationships they strengthen. Step two is to preload the fun.
31:33I'd recommend opening a separate bank account and call it your joy jar. This doesn't have to be with
31:39a new bank. You can actually have multiple current accounts with the same bank and have them all appear
31:44on your mobile banking app which makes things very simple. Then set up an automatic transfer of 10% of
31:50whatever you make to be deposited into this account every single month. So if you make $2,000, send $200.
31:58If you make $10,000, send $1,000. It doesn't matter how much it is, the percentage is what keeps
32:04it
32:04sustainable. Just make sure you don't cheat. You can't just top the account up from growth, stability or
32:11essentials when it gets low. If you hit zero, you have to wait until next month. When you know this
32:16fun money is limited, you look to maximize it in the best possible way. This is exactly how you
32:22protect your goals without feeling like you're missing out every time your friends suggest dinner
32:27or you pass something in the shop that you really love. Step three is to prioritize experiences. If you
32:34don't have a particularly large joy jar at the moment, please prioritize experiences above anything
32:39else. People always say to me in the comments, what are you saving for? Bro's going to die with all
32:45his
32:45money. And I get it. From the outside, it might look like I'm depriving myself, but I'm really not.
32:51I just spend differently to most people. I don't need a garage full of cars or shelves full of designer
32:57gear. That stuff might look rich, but it doesn't feel rich to me. My 10% goes on things I'll
33:02actually
33:03remember, such as a ski trip with my wife, a great day out at Universal Studios with my son,
33:08meeting you guys in New York and a weekend away golfing with my mates. So there you have it,
33:15the complete 25-15-50-10 rule. If you want to know how to make $10,000 as a student,
33:21then I'm going to leave that video right up there, but don't click on it just yet.
33:25Make sure to subscribe if you want to grow your wealth, okay? I'll see you over there.
Comments