Jaspreet Singh

And this is where it is very helpful to have a system for your money.

One that I teach is a 75-15-10 plan, which says for every dollar that you earn from here on out, 75 cents is the maximum that you can spend.

15 cents is the minimum that you invest.

10 cents is the minimum that you save.

This way, whether you're earning $30,000 a year, $300,000 a year, or $3 million a year, you're always going to have a rule of how much you can save, invest, and spend.

Break that down for us again.

75, 15, 10.

So the way I'd like you to do this is I want you to open three bank accounts.

And you're going to make money.

Money gets deposited into one bank account.

Create an automatic withdrawal and deposit.

That money gets pulled out of one bank account and 15% goes into your bank account holding your investment money.

10% goes into your bank account holding your savings money.

The reason why you want to have three different bank accounts is because if you have $100 in one bank account and you think this is my investing money and my saving money, you go into the store and you see this nice sweater on sale.

It's $90.

I have $100 in my bank account.

Well, I should be able to afford it, right?

Well, you forget that some of that money is supposed to be saved and invested, and then you pay taxes on that sweater, and now you spent $98, $99 on that sweater, and oops, I just spent my savings and my investment money, which is why you need the three different bank accounts.

Your savings are not going to make you wealthy.

This is a big lie that we've been sold.