Mel Robbins

And that's the only thing that we need to worry about right now.

And these buckets are so important that I want to list them off one more time for you to make sure you really got this rule of understanding where your money needs to go once you understand how much money you have.

So first bucket, fixed costs.

That's rent, mortgage, utilities, insurance, car payment, minimum debt payments, groceries.

These are the things that you have to pay.

And I also want to remind you of what you learned from Tiffany Aliche, that there are all sorts of these silly things that you do not need in your fixed budget, like glass containers on Amazon, that we are all buying.

They feel like a necessity.

They are not.

Fixed budget, very black and white.

It is the things you must pay and cannot live without.

That's bucket one.

Bucket two, savings.

That's your emergency fund, plus the money that you may need in the next one to five years if you've got some big goals like wanting to make a down payment for an apartment or a house.

Bucket number three, investments.

That means long-term investings, retirement, 401k, IRA, brokerage accounts.

And by the way, if you're thinking, Mel, I...

I can barely pay my bills.

I can't even think about savings.

The next expert that you're going to meet is going to teach you a amazing rule around how you can start saving now, even if you're living paycheck to paycheck or working an hourly job.

This is a genius trick you're going to love.