About this Video

• Video Title: How To Manage Your Money Like The 1%
• Channel: Steve | Call to Leap
• Speakers: Steve
• Duration: 00:10:18

Introduction

This video explains the 70/20/10 rule for managing money, a framework used by financially successful individuals to build wealth regardless of income. The speaker breaks down how to allocate income across spending, saving/investing, and a "joy fund" to achieve financial well-being and avoid feeling deprived.

Key Takeaways

• The 70/20/10 Rule: Allocate 70% of income to monthly expenses, 20% to savings and investments, and 10% to a "joy fund" for guilt-free spending.
• Optimize, Don't Deprive: The goal is to optimize spending, not to deprive oneself. Analyzing expenses and identifying areas for reduction is crucial.
• Emergency Fund: Build an emergency fund of 3-6 months' essential expenses in a high-yield savings account.
• Long-Term Investing: Invest the remaining portion of the 20% in assets like low-cost index funds or ETFs to build long-term wealth. Time in the market is more important than timing the market.
• Joy Fund: Allocate funds for guilt-free spending to prevent burnout and maintain a balanced lifestyle.