I’ve Made Millions of People Rich… Here’s My Playbook

Summary

This video script offers a comprehensive playbook to financial prosperity, guiding viewers on setting up a conscious spending plan and automating their finances for wealth creation. It covers fixed costs, investments, savings goals, and guilt-free spending, advocating for responsible credit card use and negotiating lower APRs. The speaker introduces the 'next $100' concept for allocating income and emphasizes the importance of a high-interest savings account. The script concludes with a simple investment strategy, recommending target-date funds for long-term growth, and encourages viewers to invest consistently for a rich life.

Takeaways

• 💼 Create a Conscious Spending Plan: Establish a spending plan with four major buckets for fixed costs, long-term investments, savings goals, and guilt-free spending.
• 🏦 Fixed Costs: Allocate 50-60% of your take-home pay to cover essential monthly expenses like rent, utilities, and groceries, with an additional 15% for unforeseen expenditures.
• 💰 Long-Term Investments: Aim to invest at least 10% of your take-home pay into retirement accounts like 401k or Roth IRA to build wealth over time.
• 🎯 Savings Goals: Set aside 5-10% of your income for short to mid-term savings goals, such as vacations or emergency funds.
• 🛍️ Guilt-Free Spending: After covering fixed costs, investments, and savings, use the remaining 20-35% of your income for discretionary spending without guilt.
• ✂️ Cut Discretionary Expenses: Identify and cut down the two largest discretionary expenses by 50% over six months to redirect savings towards wealth-building goals.
• 💳 Master Credit Card Usage: Use credit cards responsibly to maximize rewards and benefits, and always pay off the balance in full to avoid interest.
• 🏦 Choose the Right Accounts: Opt for high-interest online savings accounts and avoid big banks with high fees and poor customer service.
• 🤖 Automate Finances: Set up automatic money flow by linking accounts and scheduling automatic transfers for fixed costs, investments, savings, and discretionary spending.
• 🚶‍♂️ Start Investing: Begin with simple, low-cost, long-term investments like target-date funds and contribute consistently to grow your wealth.
• 🔑 Ladder of Personal Finance: Follow a step-by-step approach to financial accounts, starting with employer 401k matches, paying off debt, and moving towards Roth IRAs and taxable investment accounts.

Q & A

What is the main purpose of the video?

The main purpose of the video is to guide viewers on how to set up their finances through a step-by-step playbook, enabling them to spend guilt-free on various life expenses and earn money through investing.

What is the first step in the speaker's playbook for financial setup?

The first step is to establish a 'conscious spending plan' which helps to save money on things you love and cut costs on things you don't.

What does the speaker mean by 'conscious spending'?

'Conscious spending' refers to the approach of deliberately choosing to spend money on things that are important to you while cutting costs on things that are not, rather than indiscriminately cutting spending across the board.

How much should monthly fixed costs constitute of one's take-home pay according to the video?

Monthly fixed costs should ideally be 50 to 60% of one's take-home pay.

What is the recommended percentage of take-home pay to allocate towards long-term investments?

The recommended percentage to allocate towards long-term investments is at least 10% of one's take-home pay.

What is the purpose of adding 15% to the fixed costs?

Adding 15% to the fixed costs accounts for unforeseen expenditures that one might have missed or forgotten about, providing a buffer for unexpected costs.

What is the third bucket in the conscious spending plan, and what does it include?

The third bucket is 'savings goals' and it includes short-term to mid-term savings objectives such as holiday gifts, vacations, weddings, or a down payment on a house.

What is the recommended percentage of take-home income to use for guilt-free spending?

The recommended percentage of take-home income for guilt-free spending is 20 to 35%.

What are the five commandments of credit cards mentioned in the video?

The five commandments are: 1) Pay off your credit card in full with automatic payments, 2) Negotiate a lower APR, 3) Get your annual credit card fees waived, 4) Keep your main cards for a long time, and 5) Use your credit card's secret perks.

What is the speaker's recommended checking account and why is it beneficial?

The speaker recommends the Schwab Investor Checking Account because it has no fees, no minimums, overdraft protection, free bill pay, and unlimited reimbursement at any ATM.

What is the concept of 'next $100' in the context of the video?

The 'next $100' concept refers to allocating the next increment of income towards different financial categories such as fixed costs, investments, savings, and guilt-free spending, based on the percentages established in the conscious spending plan.

What is the ladder of personal finance and what are its steps?

The ladder of personal finance is a six-step guide to managing personal finances, which includes: 1) Taking full advantage of a 401k match, 2) Paying off credit card and high-interest debt, 3) Opening and contributing to a Roth IRA, 4) Contributing above the employer match to a 401k, 5) Utilizing a health savings account (HSA) if available, and 6) Investing in a regular non-retirement taxable account.

Why are target-date funds recommended for investment in the video?

Target-date funds are recommended because they are simple, require minimal effort, and automatically adjust their asset allocation to become more conservative as the investor gets closer to their retirement date.

Outlines

00:00

😀 Introduction to Conscious Spending and Wealth Building

The speaker introduces a step-by-step playbook aimed at setting up personal finances to achieve guilt-free spending and daily earnings from investments. The emphasis is on conscious spending, which involves prioritizing spending on things one loves and cutting costs on things one doesn't. The speaker shares examples of individuals who have successfully implemented a spending plan and encourages the audience to create their own plan, which will be detailed in the following steps.

05:02

💼 Establishing a Conscious Spending Plan

This section delves into the specifics of creating a conscious spending plan, which involves dividing finances into four major buckets. The first bucket is for monthly fixed costs, which should constitute 50-60% of one's take-home pay. Examples and a guideline of adding 15% for unforeseen expenses are provided. The speaker also introduces a sample person's plan and offers a free template for viewers to create their own. The importance of understanding fixed costs for better financial planning is highlighted.

10:04

🏦 Long-Term Investments and Savings Goals

The third bucket is allocated for long-term investments, with a recommendation to invest at least 10% of one's take-home pay into retirement accounts like a 401k or Roth IRA. The potential for wealth creation through consistent investing is discussed, along with the benefits of salary increases and additional income contributing to investments. The fourth bucket is for savings goals, targeting 5-10% of take-home pay for short to mid-term financial objectives. The speaker advises viewers to name their savings accounts for specific goals, providing a more personalized approach to saving.

15:06

🛍️ Guilt-Free Spending and Credit Card Strategies

The final bucket is for guilt-free spending, which should make up 20-35% of one's take-home income. The speaker suggests making targeted improvements to discretionary spending by cutting back on the two largest expenses by 50% over six months. The benefits of using credit cards responsibly are also discussed, including leveraging rewards and perks. The speaker introduces the 'five Commandments of credit cards' to help viewers maximize the benefits while minimizing debt.

20:08

🤝 Negotiating Lower APRs and Waiving Annual Fees

The speaker provides strategies for negotiating lower APRs on credit cards and getting annual fees waived. The importance of maintaining long credit history and the benefits of keeping main credit cards for a long time are highlighted. The speaker also emphasizes the value of understanding and utilizing the perks and benefits offered by credit cards, such as purchase protection and extended warranties. The goal is to improve credit scores and financial health by using credit cards to one's advantage.

25:09

💼 Automating Finances for Effortless Wealth Creation

The speaker introduces the concept of setting up an automatic money flow, which involves assessing and choosing the right checking and savings accounts. The benefits of using online savings accounts over traditional bank accounts are discussed. The speaker shares personal preferences for certain banking products and advises against using specific banks known for predatory practices. The importance of linking accounts for automatic transfers and creating an automatic money flow system is emphasized to ensure effortless wealth creation.

🏦 The Power of Investing and Building Wealth

The speaker discusses the importance of investing as a means to build wealth, dispelling the myth that investing is only for the rich. The potential of compound interest over time is highlighted, showing the significant growth of investments even with modest monthly contributions. The speaker outlines a 'ladder of personal finance' with steps ranging from taking advantage of employer 401k matches to investing in a taxable account, with a focus on low-cost, long-term investments. Target date funds are recommended as a simple and effective investment option for those looking to grow their wealth with minimal effort.

🚀 Achieving Financial Freedom Through Automation and Investing

The final paragraph summarizes the four steps to financial freedom: creating a conscious spending plan, using credit cards responsibly, setting up an automatic money flow, and investing wisely. The speaker emphasizes the importance of starting early, making a decision to invest, and letting the system work automatically with minimal effort. The goal is to spend only one hour per month on finances, allowing savings and investments to grow, ultimately leading to a rich life and the creation of true wealth.

Keywords

💡Conscious Spending

Conscious Spending refers to a deliberate and mindful approach to allocating one's finances, focusing on spending extravagantly on things that are truly important and loved, while cutting costs on less significant items. In the video, it is the primary method proposed for setting up personal finances, with the speaker illustrating how individuals like John, Lisa, and Julie have successfully implemented it to save more and spend guilt-free on what matters to them.

💡Fixed Costs

Fixed Costs are the basic expenses that one must pay to maintain a standard of living, such as rent, utilities, and groceries. The script suggests that these should ideally constitute 50 to 60% of one's take-home pay. An example given is Sarah, who has monthly fixed costs of $2,500, which is 50% of her after-tax income, aligning with the recommended range.

💡Long-term Investments

Long-term Investments are contributions made to accounts like 401k or Roth IRA with the aim of wealth creation over an extended period. The video emphasizes investing at least 10% of one's take-home pay into these accounts, as it is a key component in building wealth, with Sarah investing $500 into her Roth IRA as an example.

💡Savings Goals

Savings Goals pertain to short-term to mid-term financial objectives, such as saving for vacations, weddings, or a down payment on a house. The speaker recommends allocating at least 5 to 10% of one's take-home pay for these goals, as Sarah does with her $400 monthly savings goal split between vacation and emergency funds.

💡Guilt-free Spending

Guilt-free Spending is the discretionary spending on personal desires after accounting for fixed costs, investments, and savings. The script suggests using 20 to 35% of one's take-home income for this purpose, allowing for enjoyment without financial guilt, as demonstrated by Sarah who has $1,225 left for such spending.

💡Credit Card Debt

Credit Card Debt refers to the money owed on credit cards, often carrying high interest rates. The video discusses strategies for managing and eliminating this debt, such as setting up automatic payments and negotiating lower APRs, which are crucial for financial health.

💡Automatic Money Flow

Automatic Money Flow is the concept of setting up a system where money is automatically allocated to different accounts, such as savings and investments, upon receipt. This automation ensures consistent financial discipline and reduces the time spent on managing finances, as the speaker claims to spend only one hour per month on finances due to this system.

💡Target Date Funds

Target Date Funds are investment funds that automatically adjust their asset allocation based on a target retirement date, becoming more conservative as the investor ages. They are recommended in the video as a simple and hands-off investment strategy, suitable for those who want to grow their money with minimal effort.

💡401k Match

A 401k Match is an employer's contribution to an employee's 401k retirement account, typically up to a certain percentage of the employee's salary. The video stresses the importance of taking full advantage of this match, as it represents 'free money' and a high return on investment.

💡Roth IRA

A Roth IRA is a type of retirement account where contributions are made with after-tax income, allowing for tax-free withdrawals during retirement. The script highlights it as a key investment vehicle, especially for those with incomes under a certain threshold, and emphasizes its benefits for long-term wealth creation.

💡High-interest Savings Account

A high-interest Savings Account is a financial product that offers a higher interest rate on deposits compared to traditional savings accounts. The video recommends using online banks for these accounts due to their competitive interest rates and lack of fees, as part of the broader strategy for managing and growing one's savings.

Highlights

The speaker offers a step-by-step playbook to set up personal finances for wealth creation.

Introduction to conscious spending, which is about prioritizing spending on loved things and cutting costs on the rest.

Conscious spending plan involves four major buckets for managing money effectively.

Explanation of monthly fixed costs and the recommended percentage of take-home pay they should constitute.

Importance of adding 15% to fixed costs for unforeseen expenditures.

The concept of long-term investments, particularly focusing on retirement accounts like 401k and Roth IRA.

Advice on investing at least 10% of take-home pay for wealth creation.

Savings goals bucket for short-term to mid-term financial objectives.

Recommendation to allocate 5-10% of take-home pay towards savings goals.

Guilt-free spending bucket allows for discretionary spending on personal desires.

Tip to cut down on the two biggest discretionary expenses by 50% over six months.

Advantages of using credit cards responsibly for rewards and benefits.

The five Commandments of credit card use to maximize benefits and minimize debt.

Setting up automatic money flow for effortless financial management.

Importance of choosing the right checking and savings accounts for financial automation.

A simple investment strategy using target-date funds for hands-off wealth accumulation.

Ladder of personal finance outlining steps from taking advantage of 401k matches to investing in taxable accounts.

The power of compounding and the significance of starting to invest early, regardless of the amount.

Final thoughts on living a rich life by spending 1 hour per month on finances with an automated system.

Transcripts

I've made millions of people rich and I

want to make you rich too I'm going to

walk you through my step-by-step

Playbook on exactly how to set up your

finances by the end of this video you'll

know exactly how much you can spend

guilt-free on a house a car even eating

out and you'll be earning money every

single day from investing automatically

it all starts with step number one a

better way to spend wouldn't it be great

to save hundreds per month and still buy

what you love wait before you run away

thinking this is about creating a budget

just hang on a second this is not about

creating a fancy budget that you'll have

to maintain every single day for the

rest of your life I don't want to sit

there and track the price of broccoli or

cans of soup or even coffee forget it I

hate budgeting but how much are you

supposed to be spending in certain areas

what if you really love travel how can

you take amazing trips and still save

money well with a conscious spending

plan you'll know exactly how to save and

how to invest every single month and

then use the rest of your money

guilt-free for whatever you want

conscious spending is not about cutting

your spending on everything that

approach would not last 2 days instead

conscious spending is about choosing the

things you love enough to spend

extravagantly on and then cutting cost

mercilessly on the things you don't for

example my friend John spends

$221,000 a year going out to restaurants

and bars I know Lisa who spends $5,000 a

year on shoes and my friend Julie makes

$40,000 a year working at a nonprofit

but she saves more than $6,000 a year

far more than most Americans what are

they all doing right they have a plan

instead of getting caught up on the

spending treadmill of new phones new

cars new vacations new everything they

plan to spend on what's important to

them and they save on the rest so let's

get on to the specifics of how you can

make your own conscious spending plan

here's the idea a conscious spending

plan involves four major buckets of

where your money will go as we go along

I'm going to show you a sample person's

conscious spending plan you can download

your own free template by clicking the

link in the description but for now just

follow along bucket number one monthly

fixed costs fixed costs are the amounts

you must pay in other words basic

expenses that any ordinary person would

need to live and a good guideline is

that your fixed cost should be 50 to 60%

of your take-home or after tax pay so

for example let's say Sarah makes $5,000

a month after taxes her monthly fixed

costs are $2,500 $ which is 50% of her

take-home pay and I think that's good

because that falls within the 50 to 60%

that I recommend so before you do

anything you've got to figure out how

much your fixed costs add up to here's a

list of things to include in your fixed

costs rent or mortgage utilities cell

phone bill car payment public

transportation or other Transportation

gas groceries debt payments including

student loans now once you've gotten all

of your expenses filled in here's one

thing I want you to do add 15% for

expenditures you haven't counted or you

forgot about yes really for example you

probably didn't capture car repair which

can cost $400 each time that's $33 a

month or dry cleaning or emergency

medical care or charitable donations

flat 15% will likely cover you for

things you haven't figured in and over

time you can get more accurate with your

projections for Sarah she'll need to add

$375 a month for these things which

brings her to a total of

$2,875 per month of fixed cost or 57.5%

of her take-home pay that's still within

the recommended range so she's good once

you've got a fairly accurate number here

subtract it from your take-home pay now

you know how much you have left over to

spend in other categories investing

saving and guilt-free spending you'll

also have an idea of a few targeted

expense areas that you can cut down on

to give yourself more money to save and

invest moving on now to bucket number

two long-term Investments this bucket

includes the the amount you'll send to

your 401k Andor Roth IRA every month any

kind of investment you've got retirement

non-retirement any of it that counts a

good guideline here is to invest at

least 10% of your take-home pay of

course the more the better because this

is where real wealth is created for

example every month Sarah invests $500

into her Roth IRA which is 10% of her

monthly paycheck again as I said real

wealth is created under this category of

investing if Sarah keeps investing 10%

of her income she'll be a millionaire in

39 years but keep in mind most of the

time when we plan out these calculations

we never factor in increases in salary

as our salary goes up we get to invest

even more and over time that turns out

to be a lot of money we also don't

factor in things like tax refunds or

unexpected income which we can also put

into our investments which will grow

huge over the long term after after a

few more years she'll make more from her

Investments than from her salary your

401k contributions also count towards

the 10% so if you already participate in

a 401k add that amount to your take-home

pay to get a total monthly salary

remember don't get too fixated on

pre-tax or post tax that's not really

the point let's just try to go for 10%

total at a minimum that's going to be a

good start you can fiddle with the

numbers later the third bucket is

savings goals now this bucket includes

shortterm to Mid midterm savings goals

for example holiday gifts vacations a

wedding in a few years a down payment on

a house Etc basically any money that

you're going to need between 1 to 5

years any shorter than that you should

just have it sitting around and spend it

when you need to any longer than that

you're likely going to want to invest

that money my suggestion is to Target at

least 5 to 10% of your take-home pay for

example Sarah decides on a monthly

savings goal of 8% or $400 she splits

this $400 evenly between vacation

savings and emergency savings and I love

this because I want you to name the

accounts that you are using for your

savings not just vacation trip to Europe

uh watching the Stars in Greece that

kind of thing After figuring out your

fixed costs your Investments and your

savings you'll now know exactly how much

you have left to spend on bucket number

four guilt free spending money this

bucket is my favorite it is the fun

money the stuff you can use for anything

you want guilt free that could be

restaurants and bars taxis movies

shopping travel anything depending on

how you've structured your other buckets

a good guideline is to use 20 to 35% of

your take-home income for guilt-free

spending that's a lot of money most

people are surprised when I share that

number because they go 20 to 35 that

sounds like a lot yes and you can do

that as long as you have hit your other

numbers for example Sarah has spent

57.5% on fixed costs 10% on investments

and 8% on savings which leaves her with

24.5% or

$1,225 each month to spend on anything

she wants guilt free now that you've

worked out the basics of your conscious

spending plan you can make some targeted

improvements to tweak your spending and

make your money go where you want it to

go here's how I would start I would pick

two discretionary expenses the biggest

two discretionary expenses and I would

aim to cut them down by 50% over 6

months to tell you the truth for most

people this is eating out they spend way

more than they think on eating out they

don't even want to spend that much so if

you were to Target one expense like that

and another expense discretionary aim to

cut that down by 50% over 6 months

here's an example of what that might

look like if you're starting at $500 a

month just for example your first month

might go down to4 75 then 450 then 400

then 350 300 and 250 on eating out you

can see that it's a gradual change you

are not doing anything big overnight

you're giving yourself time to lock in

the behavioral change now there's a key

here and the key is to redirect that new

money to the things you want in your

rich life that could be paying off your

debt faster 250 bucks a month could

shave off years of your mortgage or it

could be investing more which could make

you hundreds of thousands of dollars or

even taking an amazing anniversary trip

that's fine too now you probably already

know where you want to redirect hundreds

of extra dollars per month this is your

opportunity to do that now for most of

you watching this right now you probably

have at least one credit card in your

wallet and that brings us to the second

step of my playbook which is beat the

credit card companies at their own game

now listen up because if you understand

this step you will be ahead of 90% of

other people instead of playing defense

by avoiding credit cards or paying the

credit card companies thousands of

dollars in interest I want you to go on

offense start using credit cards

responsibly and squeeze as many rewards

and perks and benefits out of your cards

as possible you can actually get

fantastic benefits on your credit card

when you are a responsible customer in

fact here are some of the ways I've used

my credit card benefits I recently used

points to cover $40,000 of flights to

India and Italy with my wife when I once

spilled coffee on my new laptop my

credit card wrote me a check for about

$11,000 to reimburse me and I don't need

to buy extended warranties because my

credit card automatically doubles them

so does yours now let's get into the

five Commandments of credit cards so you

can beat the credit card companies at

their own game number one pay off your

credit card in full with automatic

payments when I talk to people who are

in debt 90% of them do not even know how

much they owe if you have debt this is

the first step you got to figure out how

much and start paying it off not

tomorrow not next week today if you have

multiple sources of debt you have two

approaches you can take to pay that off

you can use the snowball method or you

can tackle the highest APR first it

doesn't really matter which one you

choose what's critical is to set up

automatic payments to get your credit

card consistently being paid off every

single month you should not be wasting

time in energy logging in manually every

month to pay off your credit cards I

don't you shouldn't nobody should that's

a solved problem you automatically set

it up and then it's done in fact you

will know exactly the month and year

that you will be debt free here's a

bonus tip go online search for a credit

card debt payoff calculator and plug in

your numbers you will discover

especially if you have a large balance

that if you pay an extra $50 a month or

$100 a month you can often shave off the

amount you are paying down by months or

even years step number two negotiate a

lower APR now especially if you are

currently paying off debt I want you to

try to negotiate down the APR on your

credit cards call your credit card

company up tell them you're getting

serious about paying off your debt and

ask them if they can lower the interest

rate sometimes they'll drop it for a

period of time which can often save you

thousands of dollars and sometimes

they'll tell you no we can't do that

that's okay as well but you'll never

know without asking step number three

get your annual credit card fees waved

you have to remember that credit card

companies compete ferociously with each

other and that benefits you call the a

month before your new annual fee kicks

in if you are paying an annual fee and

ask them to wave it sometimes it works

sometimes not sometimes they'll give you

a points bonus instead of waving your

fee but if you decide that your credit

card fee is not worth it then ask your

credit card company what they will do

for you if they wave your fees great if

not you have the option to switch to a

no fee card number four keep your main

cards for a long time keep them active

but also keep them simple lenders like

to see a long credit history which means

that the longer you hold your account

the more valuable it is for your credit

score my suggestion is to avoid getting

suckered in by introductory offers and

low aprs honestly if you're happy with

your card keep it that's what I do and

number five use your credit card's

secret perks call your credit cards and

lenders once a year and ask them to send

you a full list of all the perks and

benefits you get that list of benefits

may include waved fees private

promotions that others don't have access

to purchase protection automatic

warranty doubling car rental insurance

trip cancellation Insurance concierge

service although their concierges are

horrible and on and on and on that's it

if you follow these five Commandments

you've mastered improving your credit by

using your credit card instead of hiding

from it now that you've learned how to

create your conscious spending plan and

beat the credit card companies at their

own game that brings me to step number

three setting up your automatic money

flow automating your money will be the

single most profitable system you ever

build this truly will change your life

it will help you pay off debt faster it

will help you automatically save and

invest it will help you make hundreds of

thousands of dollars in your sleep and

all you have to do is set this up in

fact if you set this up now you can

spend less than one hour per month on

your finances I know because that's what

I do and that's what hundreds and

hundreds of thousands of my readers do

as well first assess the checking

account you've got and decide if you

need a new one the checking account is

important because you think of it like

your email inbox all of your money

should come in there first and then it's

filtered out to different accounts like

a savings account retirement account Etc

the checking account I personally use is

the Schwab investor checking account by

the way I don't have any relationship

with Schwab except that I'm a customer

and I think they have a great product in

my opinion Schwab's investor checking is

the single best checking account

available there are no fees no minimums

it's got overdraft protection free bill

pay and best of all unlimited

reimbursement at any ATM you can go to a

7-Eleven you can go to any ATM and they

will reimburse you for the fees when I

saw this account I wanted to marry it

now although you need to open up a

Schwab brokerage or investment account

to get the fees waved you don't actually

need to use their investment account and

side note I want to point out a couple

of things number one you can't deposit

physical cash through this account so if

you need to do that you're going to need

to get another checking account second I

have heard reports that they do a credit

pull on your credit report so if you're

thinking of buying a car or a house in

the next 6 to 12 months I probably would

not open up this account again and do

your own research before you open up

anything that I talk about here next

you'll need to open up an online

high-interest savings account think of

your savings account as a place to store

cash for the shortterm to midterm that's

basically 1 to 5 years take a look at

this chart again 5 to 10% of your

take-home pay or after tax pay should be

sent to your savings account every month

now I recommend your checking and

savings account be at two separate Banks

why because it makes it a little more

difficult for you to casually just reach

into your savings account account and

transfer out 500 bucks for a crazy night

out I don't want that I want you to have

a plan and stick to it so personally

when you're looking for a savings

account I do not recommend using a

standard big Bank savings account

instead online savings accounts give you

more interest they're more convenient

they're just better I personally use

several different accounts Capital 1 360

savings is fantastic no fees no minimums

no tricky upsells and again I don't

really care if it's the absolute highest

interest rate I'm not rate chasing I

just want to find one that is good and

stick with it you can also look at Ally

Marcus by Goldman Sachs and American

Express personal savings I don't have

any relationship with any of these Banks

go ahead and look into any of them all

of them are great whatever Bank you

choose just remember one key principle

Bank of America and Wells Fargo suck

they treat their customers like they are

predatory banks that rip you off they

charge near extortionate fees they use

deceptive practices to beat down the

average consumer and they have been

fined especially Wells Fargo fined

billions by the government for extremely

Shady practices go ahead and Google it

and look it up yourself stay away from

them I'm getting mad right now just

thinking about this all the people that

they targeted they got people's cars

repoed they target minorities they

target people who don't have money Wells

Fargo in Bank of America now that you

have chosen the right checking and

savings account I'm going to show you

how to make your system automatic so it

runs itself okay here's what you got to

do to start list all your accounts in

one place you're going to need a list of

all your accounts URLs your login and

passwords then it's it's time to link

your accounts together so you can set up

automatic transfers from one account to

another when you log into any of your

accounts you'll usually find an option

called something like link accounts or

transfer or setup payments these are all

the links you need to make pause the

video now so you can take some notes all

right let's take your conscious spending

plan now and make it automatic to do

this I use a concept called the next

$100 and what it means simply is where

will the next $100 you make go for

example is it all going to go to your

investment account probably not cuz you

need to make sure you have a roof over

your head are you going to allocate 10%

to your savings account I hope you will

you know most people don't think about

their money in this way at all they

don't think in percentages they don't

think in buckets they just pay what's in

front of them and they go 5 10 20 years

doing this and they wonder what am I

working for why do I not ever have any

money left over the answer is you

haven't made a plan I don't want you to

thoughtlessly spend your money money

there is a better way and it involves

using the guidelines you established in

the conscious spending plan so if you

followed step one of this video you

already know how much money you have to

contribute to your fixed costs and how

much is left over for investment saving

and guilt-free spending so if you made

$100 and your plan follows my guideline

you might put $60 towards your fixed

costs $10 into your investment account

$10 into savings and then you'd spend

the remaining $20 on whatever you want

guilt-free pretty cool right and what I

like about this is that it's based on

percentages so as you start to increase

your income you can scale your system

with you and it even gets better because

once everything is automated that money

is going to be sent from your checking

account right into the appropriate

accounts without you having to think

about it so here's how you set up your

automatic money flow and I'm going to

assume that you get paid on the first of

the month pause the video so you can

take notes quick tip to achieve this

automatic money flow I recommend that

you get all your bills on the same

schedule gather them all up call the

companies ask them to switch your

billing dates this won't take long at

all and that right there is the basic

automatic money flow schedule if you

follow this system your money management

is now on autopilot congratulations all

right we've got one step left but before

we jump into that I noticed that only

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your money to live your rich life all

right now on to step four a simple

investment strategy that will make you

rich sometimes I hear people saying

investing is for rich people and I

really want to gently take their

shoulders shake them turn them around

and say no investing is not just for

rich people investing is how you get

rich let me show you what I mean take a

look at how much your Investments would

be worth if you contributed $100 a month

or $500 a month or $1,000 a month for

the next 25 years assuming an 8% return

now now let me explain what's going on

in this chart first off please don't

write a comment that says what about

inflation in 20 years $10 million will

only buy you a cup of coffee this

includes inflation okay this is not a

nominal number it's real this already

factors inflation in and if you want to

be even more conservative just calculate

it with a 7% return still a lot of money

next remember that as your income

increases you will invest more so this

is actually conservative very few people

keep investing the exact same amount for

25 years they actually invest more and

finally these numbers start to get

really big towards the end the first

year okay whatever this fifth year uh

it's getting a little better but it

starts to compound like a snowball that

is where the real money is made that's

why you got to start early now by

opening an investment account you give

yourself access to the biggest

money-making vehicle in the history of

the world the stock market and investing

might seem intimidating but when you

learn how it works it's actually quite

simple see when people talk about their

Investment Portfolio they're referring

to the money in their 401K Roth IRA and

perhaps other investment accounts they

have my goal here is to help you pick

the simplest investment to get started

and to make it easy for you to maintain

now I have a philosophy low cost

long-term Investments really simple and

by doing just these two things you'll be

on your way to getting rich now let's

look at the investment accounts you can

open and when this is what I call the

ladder of personal finance and there are

six steps steps each step Builds on the

previous one so when you finish the

first just go on to the second if you

can't get to number six don't worry do

your best for now step number one if

your employer offers a 401k match invest

to take full advantage of it and

contribute just enough to get 100% of

the match a 401k match means that for

every dollar you contribute to your 401k

your company will match your

contribution up to a certain amount for

example let's assume you make 100K and

that employer will match 100% of your

contributions up to 5% of your salary

what does it mean in real math means if

you contribute $5,000 your company will

match it with $5,000 that is free money

and there is quite simply no better deal

step two pay off your credit card and

any other debt especially highin debt

the average credit card APR is currently

over 22% there's aprs that are even

higher whatever your credit card company

charges you paying off your debt will

give you a significant instant return

step three open up a Roth IRA and

contribute as much as possible to it as

long as your income is

$146,000 or less as of recording this

video you are allowed to contribute up

to

$7,000 in 2024 for current contribution

limits just search for Roth IRA

contribution limits step four if you

have money left over go back to your

401k and contribute as much as possible

to it this time above and beyond your

employer match in 2024 the contribution

limit is

$23,000 but the government often changes

this annually to keep up with inflation

for current contribution limits search

401k contribution limits step number

five a little unusual if you have access

to a health savings account an HSA that

can be an investment account with

Incredible tax features that few people

know about if you've completed step four

and you still have money left over take

advantage of this account and step six

if you still have money left over to

invest open up a regular non-retirement

taxable account and put as much money as

possible in there I mean you can invest

50,000 a month 500,000 5 million a month

if you want there is no limit to how

much you can invest in a taxable account

I share that because some people have

very high incomes they don't know where

to put it there's your option also feel

free to pay any extra on Mortgage Debt

you have particularly if it's high

interest and then consider investing in

yourself whether it's starting a company

or getting an additional degree using

some of our self-development programs

there's often no better investment than

investing in yourself remember the lad

of personal finance only shows you what

accounts to open

now I'll show you where you can invest

to keep things simple I'll tell you my

number one pick for Investments Target

date funds this is the option that I

recommend to my family you have lots of

places you can invest including your own

index funds but Target date funds are

the simplest place to start investing

and they're fantastic for people who

want their money to grow with the least

possible efforts Target date funds you

choose them based on the year that

you're going to retire and they

automatically become more conservative

over time and as you get older that's

exactly what you want from your

Investments all you have to focus on is

putting as much money as possible into

the target date fund and it

automatically diversifies for you now

when choosing the target date fund to

invest in look for the year that you

plan to retire for example if you plan

to retire at 65 and you'll be 65 in 2050

you would find a 250 Target date fund

you can look at Vanguard they've got a

Vanguard 2050 fund Fidelity Schwab 2050

fund I personally have used all of these

Services they're great I think they are

lowcost long-term investment funds

they're fantastic and then start

automatically investing every single

month that Target date fund might sit

within your 401k your Roth IRA or any

number of accounts all you've got to do

is make sure that the money is

automatically being sent and invested

every single month now whatever option

you choose remember investing is not a

race we are not trying to get rich quick

we're trying to be slow calm methodical

the key make a decision and start

investing and now congratulations you

are an investor okay if you follow the

four steps I outlined in this video

you're able to spend more on the things

you love guilt-free you're using your

credit card responsibly you're squeezing

those credit card companies for as many

rewards and benefits as possible and

even better you've tied your system

together so it works automatically with

hardly any effort that means that you

can now spend 1 hour per month on your

finances just 1 hour your savings are

growing your Investments are growing

automatically this is how you live your

rich life and this is the way true

wealth is created check out this video

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