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00:00Let me tell you something that will change your life
00:02if you let it sink in.
00:04The richest people in the world are 75% entrepreneurs,
00:0815% investors, 7% inheritors of wealth,
00:133% athletes, entertainers and artists,
00:160% employees who just earn a salary.
00:19So if you wanna know how to manage your money
00:22like the 1%, you have to understand
00:24what those first four categories have in common.
00:26So let's think about it.
00:28Entrepreneurs own businesses, investors own assets,
00:32rich kids own trusts.
00:34Finally, athletes, entertainers and artists own rare skills.
00:39So it's clear, if you don't own something,
00:41you are what's owned.
00:43That's the secret most people miss.
00:45So how can you start owning things like the 1%?
00:48Well, you need to follow the 25, 15, 50, 10 rule.
00:51I designed this rule so that anyone,
00:53no matter what their income,
00:55can manage their money like the top 1%.
00:58Because the truth is,
00:59it's not about how much money you make,
01:01it's about how you manage what you make.
01:04I'm not just some YouTuber,
01:05I've actually used this rule for decades,
01:08and it's enabled me to become a multi-millionaire,
01:11even though I started out with no money
01:12and no qualifications.
01:14So let's get into it.
01:19The first 25% of your income
01:21should be going towards growth.
01:23This is the 25% that works for you.
01:26By growth, I don't mean some kind of mindset nonsense
01:30about growing as a person with the power of meditation.
01:33I mean using this money
01:34to buy things that increase in value.
01:36You see, when most people get their paycheck,
01:39they pay the bills and then blow the rest
01:41on useless things they don't even remember buying.
01:43This is exactly why 99% of people are trapped,
01:47owning nothing of value.
01:48The truth is, this is all by design.
01:51The system wants us rich for a week,
01:53then skint by the end of the month,
01:55waiting for the next payday.
01:56So we've got no breathing room,
01:58and then we're forced to work even harder next month
02:01just to keep up.
02:02This is effectively modern day slavery.
02:04Just think about it.
02:05Slaves used to work every day with no pay,
02:08but they got free food, shelter, and water.
02:11Today, people work nearly every day and get paid.
02:14However, their money is mostly spent on food,
02:17shelter, and water.
02:18The only thing that has changed is the illusion of freedom.
02:21Once you understand this, you can start fighting back
02:24by taking that first 25% of your income
02:27and putting it straight into assets.
02:29This is anything that grows in value over time
02:31and puts money in your pocket.
02:33The idea is that while you're out working,
02:35these assets that you own are working for you
02:37in the background.
02:38Eventually, these assets could even make you more money
02:41than your day job.
02:42You might think you don't have enough money
02:44to invest in assets.
02:45However, you need to find the money
02:47because the sooner you start, the better.
02:50Let me show you something that will blow your mind.
02:52This is Billy.
02:53He started investing $200 a month at 20 years old.
02:57And this is Phil.
02:58He didn't start until he was 30,
03:00but to catch up, he invested $300 a month.
03:04Now, let's fast forward it to when they reached 60,
03:07and they both stopped investing.
03:08Now, I'm gonna give Phil a walking stick,
03:12and I'm gonna give Billy some glasses.
03:15Right, that's better.
03:17Now, let's add up how much each one saved.
03:20Billy put in $200 per month for 40 years.
03:23So that's a total of $96,000.
03:29However, Phil put in $300 per month for 30 years,
03:33which is a total of $108,000.
03:37So, Phil ended up with more money, right?
03:40Because he saved more each month.
03:42Well, not exactly.
03:43Because they were investing instead of just saving.
03:46If we assume an average annual return of 10%,
03:49which is the average return of the S&P 500
03:52over the last 100 years,
03:54then the numbers start to look a little bit different.
03:57Phil's investment will be worth $678,146.
04:03Not bad.
04:05Whereas Billy's investment would be worth a staggering
04:11$1,264,816.
04:14How crazy is that?
04:16Billy invested $12,000 less,
04:19but ended up with nearly $600,000 more,
04:22all because he started earlier.
04:24That's the power of compound growth.
04:26That's why you should start now,
04:28even if it's small,
04:29because waiting will cost you more than you think.
04:32But how can you actually get started?
04:34Well, step one is to select your growth assets.
04:37There are loads of ways to grow your money,
04:39but not all of them carry the same risk or reward.
04:42So I like to think of them as a scale
04:44from relatively safe and steady to high risk, high reward.
04:48At the lower risk end, we've got index funds.
04:52Honestly, this is where most people should start.
04:55You're not trying to pick winners.
04:57You're just buying a slice of the whole market,
04:59like the S&P 500 I mentioned before.
05:02You don't need to check charts or time the market.
05:05You just let it sit there and grow quietly in the background.
05:08Then there's real estate.
05:10That could be rental property if you've got the money,
05:12or REITs if you haven't.
05:14REITs lets you invest in real estate without buying a property.
05:17It's kind of like buying a small share in a building
05:19with a bunch of other people.
05:21In the middle is skills.
05:23Learning a skill that makes you money is hands down
05:26the fastest return on investment you'll ever see.
05:29I'm talking about things like copywriting, editing, sales,
05:32coding, anything you can actually use to bring in income.
05:36Unlike stocks or property, no one can take it away from you.
05:39However, it does take more time to learn.
05:42And that's why it's higher up the risk scale
05:44than the other two.
05:45Further up, we've got online businesses.
05:48Stuff like drop shipping and selling digital products.
05:51These can pay off big, but they take a lot of effort.
05:54And you've got to be ready to fail a few times
05:56before you find your feet.
05:57Then we get to individual stocks.
06:00I know it's tempting to try and pick the next Tesla,
06:03but unless you've done your homework
06:04and you really know what you're doing,
06:06you're basically just guessing.
06:08So if you're going to do it without learning the specifics,
06:11keep it small and treat it like a hobby,
06:13not your main strategy.
06:15And right up the top is alternative investments.
06:18I'm talking Bitcoin, Ethereum, NFTs, gold, wine, sneakers,
06:24you name it.
06:25Can you make money with these?
06:26Absolutely.
06:27Can you lose it overnight?
06:29Also, absolutely.
06:31I've played around with some of these,
06:32but I never risk more than I'm willing to lose.
06:35These are your moonshots.
06:36Fun to try, but not where you build long-term wealth.
06:39So if I were you, I'd start with the stuff
06:42that actually builds a foundation,
06:44which are index funds and high-income skills.
06:47Then as you grow more confident,
06:49you can start dabbling with the rest.
06:51So now you know what to invest in,
06:53now we've got to talk about how to invest.
06:55Because if you're doing it through the wrong kind of account,
06:58you could be handing over thousands in unnecessary tax
07:01without even realizing it.
07:02That's why step two is to set up tax advantaged accounts.
07:06Right, let me show you the smart way to legally save as much money as possible.
07:11Before we dive in, remember, I'm not a financial advisor.
07:14I'm just sharing what I've personally done over the years.
07:17Okay, let's start with the UK.
07:20One of the best options is the stocks and shares ISA.
07:24You can invest up to 20,000 pounds a year,
07:27and anything you earn is tax-free.
07:30You can set one up on platforms like Trading212.
07:33All you have to do is select the stocks and shares ISA when you sign up.
07:36Since I was planning to talk about Trading212 anyway,
07:39I reached out to see if they'd be interested in sponsoring this portion of the video.
07:44They agreed and are also giving away a free fractional share worth up to £100
07:48to anyone that uses the code Tilbury when they create an account.
07:52You can also invite your friends, and once they fund their accounts,
07:55you'll both get a free fractional share.
07:58If you're working a nine-to-five, you've probably got access to
08:02a workplace pension.
08:04Usually, you'll put in 5% and your employer will match with 3%.
08:08That's basically free money.
08:11You don't pay any tax on the money it earns while it's growing.
08:14You only pay tax when you take it out later on.
08:17If you're in the US, your setup's a little bit different.
08:20The Roth IRA is one of the best accounts you can open.
08:24You invest money you've already paid tax on, but every penny it earns grows completely tax-free,
08:30and when you retire, you can take it out with zero tax.
08:33The limit on this account is $7,000 a year if you're under 50.
08:38Even billionaires use this account.
08:40Peter Til, one of the guys behind PayPal, reportedly turned his Roth IRA into over $5 billion.
08:46He did this by investing in early-stage, high-growth companies, including PayPal and Facebook,
08:54which then increased in value significantly.
08:56Then there's the 401 , which is basically the US version of a pension.
09:02The money you put in comes out of your paycheck before tax.
09:06It also grows over time without being taxed while it's invested.
09:10And if your employer offers a match, definitely take it.
09:13Now, I know a lot of you aren't in the UK or USA, so here's a list of all the
09:18tax advantage accounts
09:19I could find.
09:20Hopefully, you can find an account in this list that lets you take advantage of the tax savings
09:25your country offers you.
09:26The problem is, lots of people open up these accounts, put their money in every month,
09:31and don't actually invest in anything.
09:33That brings us on to step three, actually start investing.
09:38All right, so now you've picked your growth assets and you've set up your account,
09:41whether you're on Trading 212, Vanguard, or something else, it's time to actually put your money to work.
09:48The best thing you can do is set up a monthly transfer that goes straight from your bank account
09:52into 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.
10:01Once it lands, you don't need to mess about with charts or try to time the market,
10:05just look for some index funds.
10:07One of the most popular methods is to build a free fund portfolio.
10:11The first fund is normally a US stock index fund, which basically invests in lots of US-based
10:16companies like Apple and Amazon, for example.
10:19The second fund is an international stock index fund, which is similar to the US-based one,
10:24but instead covers companies outside the US.
10:27And the final fund is something called a bond fund, which helps provide stability,
10:32as they're generally less volatile than stocks and can help smooth out the ups and downs of the market.
10:37Let me show you how to set something like this up on Trading 212.
10:40If you haven't already signed up, then I'll leave a link in the description.
10:43If you've already signed up within the last 10 days, you can head over to the promo code section
10:48of Trading 212 and enter the code Tilbury to get a free fractional share worth up to £100.
10:54This is a nice boost to get you started with investing.
10:58Then go over to PIES and then click the plus icon.
11:02Now you can select whatever stocks you want to include in your PI.
11:05For our US stock market fund, let's search for the S&P 500.
11:11This Vanguard one should do nicely.
11:13If you're based in the US, then you can also pick the Vanguard total stock market index fund,
11:19known as the VTSAX.
11:21This fund is like owning a tiny piece of 500 of the biggest, most famous companies in America,
11:27like Apple, Amazon and Coca-Cola.
11:30By the way, look out for the terms accumulation or distribution in the brackets.
11:35Personally, I always go with accumulation,
11:37as it reinvest your dividends back into the stock automatically.
11:41Then let's go and search for our next one, which is our international fund.
11:45For this, let's select iShares MSCI World UCITS ETF with the ticker IWDA and tap add to PI.
11:55This fund is like having a collection of companies from all around the world.
11:59It includes big businesses in places like Europe, Japan and Canada.
12:04Now for our bond fund, let's search for iShares USD Treasury bond 7 to 10 years,
12:11UCITS ETF with the ticker IBTM and tap add to PI.
12:17This fund is like lending money to the US government.
12:20They promise to pay you back with a little extra,
12:23which helps you keep your money safe and steady even if stocks go up and down.
12:27Right, now those are added, we can click the arrow to go to the next step.
12:31On this page, you can adjust the percentage allocation of your money to each fund.
12:36If you go with an aggressive approach, this involves investing more in stocks,
12:40which 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
12:49and only 10% is in bonds.
12:51This setup has the potential for big returns, but also comes with sharp ups and downs in the short term.
12:57If you prefer slightly less risk, but still want a chance for high returns,
13:01then a slightly less aggressive approach might suit you better,
13:05with around 80% in stocks and 20% in bonds.
13:09Don't get put off by the terms aggressive, it's all down to your age.
13:12As a general rule of thumb, the older you are, the more bonds you should have.
13:16So let's make the S&P 500 60%, the iShares World Fund 30%, and the bond fund 10%,
13:26and click next, and then auto-invest.
13:30This value projection is really awesome, as it shows you how much money you could make
13:34based on historical averages.
13:36Of course, when you invest, you can get back less than you invested,
13:40as investments can rise and fall.
13:41But it's still a great way to get an idea of how much you could make based on data back
13:46projections.
13:47Once your investing is automated, your job is simple.
13:50Stop fiddling and go and make more money.
13:52Because 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.
14:01That means your focus should now be on increasing your income,
14:05so you can increase your investments.
14:06This is where the skill building I talked about in step one really starts to come into play.
14:12If you haven't yet, learn something valuable.
14:15Do it as a side hustle.
14:16Bring in more cash, then feed it straight back into your investments.
14:23The next 15% of your income should be going towards stability.
14:28This is the 15% that keeps you in the game.
14:31A lot of people don't realize that not all your money should be thrown into growth investments or spent.
14:36Some of it needs to be set aside to protect your progress.
14:40I wish someone had told me that when I was younger, because I had to learn it the hard way.
14:44I didn't grow up around money, so when I turned 18 and needed a car to get to work,
14:49I didn't have any savings set aside.
14:51So I did what most people do.
14:53I took out a loan and bought myself a solid little German whip, a VW Golf.
14:58I even got a new stereo with the extra cash the bank gave me.
15:02And for about three months, I felt like I was on top of the world.
15:06Then out of nowhere, the engine blew up.
15:08I had no backup, no safety net and no clue what to do.
15:12And on top of all this, if I didn't get the car fixed, I'd lose my job.
15:16So I borrowed even more, which piled on more debt, more pressure and more stress.
15:22To me, that car didn't just break down.
15:25It broke my finances and it set me back a whole year.
15:28If I just had 15% tucked away for stability, I'd have been in a completely different position.
15:34Most people don't have a money problem.
15:36They have a stability problem.
15:37One unexpected bill and it all falls apart.
15:41Even if you are investing, you'd be forced to sell your investments at a bad time, which may lead to
15:47a loss.
15:47That's why you need a margin for error built into your life.
15:50Let's get into how you do it.
15:52Step one is to calculate your stability fund.
15:56To do this, you first need to list out your core expenses.
15:59These are things like your groceries, rent, utilities, transportation,
16:04and any essential services like your internet connection,
16:08which you might need for work, not for Netflix.
16:11All of those things combined should give you a total.
16:13That number is called your monthly baseline.
16:16Let's say that adds up to $1,500 per month.
16:22Now take that number and multiply it by five months.
16:25This will equal the ideal stability fund that you should be aiming to save.
16:30So in this example, that should be $7,500.
16:36So each month when you get your paycheck, 15% of your wages should be going towards building up this
16:42figure.
16:43You might be thinking this is quite extreme and I admit it is on the more cautious side.
16:48However, I know from experience that when life hits, it usually comes all at once without warning.
16:54So if you only have a couple of months saved up, then you won't be as bulletproof.
16:58Step two is to store it correctly.
17:01Now that you've worked out your stability fund, don't make the mistake of parking it in the wrong place.
17:06Because where you store this money is just as important as having it in the first place.
17:10And for that reason, I've got three rules I always stick to.
17:14Firstly, it must be easy to access.
17:17This money should be available within 24 hours max.
17:20So don't lock it up in some account that penalizes you for withdrawing early.
17:25Or won't let you touch it for five years in return for a bit more interest.
17:29I've seen people lose their jobs and still not be able to access their stability fund.
17:33That defeats the whole point.
17:35When things go wrong, you need speed, not some nonsense waiting period.
17:40Secondly, it must be zero risk.
17:43This 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.
17:55Because when an emergency hits, the market might be down.
17:59The same goes for crypto, long-term bonds or anything else that's meant to grow over years.
18:04Thirdly, 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.
18:15This is because if you leave it somewhere with zero interest,
18:19then it will be eaten away by inflation as money gets less valuable over time.
18:23That's where high yield savings accounts come in.
18:26As a film in this video, you can get savings accounts with four to five percent interest rates
18:31and with no penalties if you need to dip into it.
18:34I'll leave some banks in the description.
18:35I'd recommend checking out SoFi, Ally and Marcus by Goldman Sachs,
18:40as they're offering decent rates and they're FDIC insured, so your money's safe.
18:44Step three is to stack it quickly.
18:47Most people think it takes years to scrape together a decent stability fund,
18:51but 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.
19:00Using them all together helped me really accelerate how fast I could save.
19:05Tactic one is called the paycheck sweep.
19:08This is when you take 15% of your income the second it lands and move it straight into your
19:14emergency fund.
19:15You can automate this with a direct debit or scheduled transfer, so it's completely hands-off,
19:20just like we did with the 25% that goes towards growth.
19:24Tactic two is the replacement promise.
19:27This is a promise you make to yourself that if you dip into your stability fund,
19:31you immediately replace it.
19:33Let's say you knock off your wing mirror and it costs $250 to fix.
19:37That's fine.
19:38That's what the fund is for.
19:40But the next time you get paid, you top that $250 straight back up like it was never gone.
19:45Tactic three is the save by spending hack.
19:49This one might sound a little bit crazy, but you can do it by using roundup apps.
19:54These round every purchase up to the nearest dollar and drop the difference into your savings.
19:58So if you spend $3.60, it rounds up to $4 and puts that 40 cents away.
20:05It sounds small, but it adds up fast and you won't even notice it.
20:08The other way to do this is with cashback.
20:11So if you're using a cashback credit card and paying it off in full every month,
20:15then take those rewards and put them straight into your stability fund.
20:19Once your stability fund is fully stocked, you've got two options.
20:22You can overroll that money into growth,
20:24or you can shift it into the final 10%, which we'll talk about later.
20:32The next 50% of your income should be going towards your essentials.
20:37This is the 50% that feeds you, not your ego.
20:41Surprisingly, over 60% of Americans earning over $100,000 a year still live paycheck to paycheck,
20:49as most are too caught up in trying to look rich instead of actually becoming rich.
20:53This 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.
21:02Let me show you what I mean. This was me, age 20, and that's my mate.
21:06On the surface, he looked like he had everything.
21:09Designer shirt, expensive watch, and was always out spending.
21:13I was the opposite. Baggy top, cheap watch, just the basics.
21:17Sure, my fashion sense could have been better.
21:20I could have at least picked up some inexpensive smart clothes, but I was young, so cut me a bit
21:25of slack.
21:26But here's what people didn't see. He had $43.20 in his account and a few credit card payments overdue,
21:35whereas I had $1,000 plus quietly sitting in investments and a decent stability fund.
21:43I'd learned from my experience with my car loan disaster, and I'd worked extremely hard to build
21:48my money back up, which meant cutting out any unnecessary spending and looking like this.
21:53Although this might not seem like a lot, remember money was worth a lot more back then.
21:57This $1,000 was a start, and that's the part most people miss. Wealth isn't what you see,
22:03it's what you don't see. I get it though, it's easy to justify the upgrades by saying things like,
22:08I need a safer car. This new house is closer to work, and I deserve a nice meal out. But
22:14that's
22:15exactly how lifestyle creep starts. So how can you keep this under control? Well, step one is to get
22:22clear on your essentials. A lot of people aren't going to like this one, because what many people
22:27consider essentials nowadays are actually just luxuries. Essentials are the things that keep you
22:33alive and functioning. That means your rental mortgage, groceries, utilities, transport,
22:40insurance, 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 you
22:53forgot 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,
23:04but so many people sign up for stuff they never use. That's why one of the easiest things you can
23:09do to free up money is to go through your bank statements and counsel anything you're not using.
23:14Just think to yourself, if it's not helping you live, work, or stay healthy,
23:19it probably doesn't belong in your 50%. So why do I recommend capping it at 50%? Well,
23:24because the average person is already spending 60 to 70% of their income and what they think are
23:31essentials. So by locking in your lifestyle at 50%, it forces you to actually eliminate what you
23:37don't need. It also changes your mindset from wanting to spend more of what you earn to wanting
23:43to earn more and increase your income, which is always something you should be doing. Step two is to
23:48shrink the two key categories. So many people talk about cutting out the little expenses like Starbucks,
23:54coffee. Honestly, I'm guilty of saying this myself. However, if you want to make the biggest impact,
24:00then you first need to focus on the two key categories. Let's start with housing. For most
24:06people, this is the biggest expense, but it doesn't have to grow with your income. Always renegotiate
24:13your rent when the lease is up. Most landlords would rather keep a tenant than go through the hassle of
24:18listing, cleaning, and showing the place again. Even a small reduction or freeze can save you
24:24thousands. 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.
24:43Now, 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
25:04depreciation, at least until your income can support a nicer car. By that, I don't mean if you can just
25:10about
25:10afford it, it should be under half of your essentials fund. In walkable or city areas,
25:15you could even consider getting rid of the car entirely, as it can free up hundreds of dollars
25:21per month. Because it's not just the car payments you save, but also the insurance, maintenance,
25:27and parking charges all added up. This can be a big saving. Once you've got those two areas under control,
25:33that brings me on to step three, use rules, not willpower. When you're tired, stressed, or even
25:40just bored, your willpower disappears. And that's exactly why the top 1% don't rely on it. Instead,
25:47they build systems that make the right choices automatically. When I was building my wealth,
25:52I had a simple system that kept me on track. Every time I was tempted to buy something and wasn't
25:57sure if
25:58it was essential, I'd run it through a few key questions. These questions stopped me from buying
26:03things I didn't need and helped me stay focused on the bigger goal. So firstly, ask yourself,
26:09is this an impulse purchase? If the answer is no, then buy it. It's likely something you've been
26:16thinking about for a while. And if it fits into the essential categories we discussed earlier,
26:20then it's a no brainer. However, if the answer is yes, then it's time to use the seven day rule.
26:28The trick behind this is pausing for seven days before you buy anything. Then after those seven
26:33days are up, ask yourself again, if you still want it. Most of the time, the answer will be no.
26:39That's the funny thing about waiting seven days. You often forget all about it as the excitement has
26:45faded and it wasn't that important to begin with. But if after seven days, you still want it,
26:50it's time for the next question. Are you buying for the brand or the value?
26:55If the answer is the brand, then don't buy it. You're likely being drawn in by great marketing.
27:02If it's an essential, then there will be an unbranded alternative that will do the job
27:06just as well, if not better. This is where most people mess up. Wealthy people don't throw money
27:12at brands because they like the marketing. They really think about the value. So what does value really
27:18mean? Well, if you buy a $60 pair of boots and wear them a hundred times, that's 60 cents per
27:23wear.
27:24Good 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 that falls apart
27:36in the wash is still a waste of money. So don't chase brands chase quality. So if you answered value,
27:41that brings us onto the final question. Will this improve your life? If the answer is yes,
27:48a conscious, intentional purchase, go ahead. But if the answer is no, it's probably just
27:54about impressing someone, killing boredom or chasing a dopamine hit. It's not worth your money.
27:59Once you go through this process a couple of times, you'll be able to decide if something's worth buying
28:04or not without even consciously thinking about the questions. They just get your mind working
28:09in 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
28:29it too. 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
28:54very quickly. And that's exactly why this 10% exists. Not as an excuse. It's a strategy,
29:01kind of like having a cheat meal. It's the thing that makes your whole financial diet comfortable
29:06and most importantly, sustainable. But to maximize its impact, you have to be strategic with how you
29:12use it. So step one is to make it guilt free. To make something guilt free, you have to see
29:18the value
29:19in it. The truth is, you can spend your 10% on whatever you like. However, some categories are more
29:25valuable than others, which should make them more guilt free. The first category is vacations, such
29:32as trips away or just weekend getaways. This is valuable because you're buying memories that last
29:38forever. It's also a great way to de-stress. When I was building up my businesses in my younger years,
29:44I completely ignored the importance of vacations, which led me to becoming very sick. The doctors
29:50diagnosed me with stress induced shingles. They recommended I took a vacation and that's when I went on my
29:55first ever ski trip. I had a great time. Since then, I've made it a priority to take a vacation
30:02every year. Instead of seeing it as a waste of time or money, I now see it as an investment
30:07in my health
30:07because it helps me stay sharp and more importantly, prevents me from burning out again. Next is hobbies.
30:15This could be painting, gaming, photography, flying model aircraft, the list goes on. This is valuable as it
30:22keeps you passionate. You don't always do what you love for work, so by doing it in your spare time,
30:27it helps keep your spirits up so you can work harder for longer. Next is nights out. Dinner, concerts,
30:34and experiences. This is another thing I ignored in my early years and it was a big mistake as I
30:40ended
30:40up losing most of my friends. Having a strong social network is so important, especially nowadays.
30:46Finally, we have gifts. Now, I'm not talking about for yourself, but for your loved ones. This is another
30:54one I overlooked. You can see how most of the stuff I teach in these videos comes from me learning
30:59from
30:59my mistakes. Back when I was focused on chasing my goals, building businesses and growing investments,
31:05I often forgot birthdays and special occasions. I was so locked in on the future that I overlooked what
31:11mattered in the present. The truth is, I never really cared much about receiving gifts. There's not
31:16much I wanted, but it wasn't until I married my wife and we started exchanging anniversary gifts that I
31:22finally understood. Gifts aren't about the item. They're about the thought, the connection, and the
31:28relationships they strengthen. Step two is to preload the fun. I'd recommend opening a separate bank
31:35account and call it your joy jar. This doesn't have to be with a new bank. You can actually have
31:40multiple
31:41current accounts with the same bank and have them all appear on your mobile banking app, which makes
31:46things very simple. Then set up an automatic transfer of 10% of whatever you make to be deposited into
31:53this account every single month. So, if you make $2,000, send $200. If you make $10,000, send $1
32:00,000. It
32:01doesn't matter how much it is, the percentage is what keeps it sustainable. Just make sure you don't cheat.
32:07You can't just top the account up from growth, stability, or essentials when it gets low. If you hit zero,
32:13you have to wait until next month. When you know this fun money is limited, you look to maximize it
32:20in the best possible way. This is exactly how you protect your goals without feeling like you're
32:25missing out every time your friends suggest dinner or you pass something in the shop that you really
32:30love. Step three is to prioritize experiences. If you don't have a particularly large joy jar at the
32:36moment, please prioritize experiences above anything else. People always say to me in the comments,
32:42what are you saving for? Bro's gonna die with all his money. And I get it. From the outside, it
32:48might
32:48look like I'm depriving myself, but I'm really not. I just spend differently to most people. I don't need
32:54a garage full of cars or shelves full of designer gear. That stuff might look rich, but it doesn't feel
33:00rich to me. My 10% goes on things I'll actually remember, such as a ski trip with my wife,
33:06a great
33:06day out at Universal Studios with my son, meeting you guys in New York, and a weekend away golfing
33:12with my mates. So there you have it, the complete 25-15-50-10 rule. If you want to know
33:19how to make
33:20$10,000 as a student, then I'm going to leave that video right up there, but don't click on it
33:24just yet.
33:25Make sure to subscribe if you want to grow your wealth, okay? I'll see you over there.
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