Do you want to escape the rat race? Want to live the life that you deserve? Well, here's a secret that's actionable and will work whether you're earning only minimum wage or earning millions a year already. So what's the secret? It's simple. Create a spending plan and budget a certain percentage of your income into one of five categories. Now, before you click exit, I know for some of you, this idea is boring or you think you know this already. But if you're unhappy with your current financial situation or you just want more, which you probably do if you're watching this video, then watch the next few minutes and I promise you that your future self will forever thank you. So let's get started. First think of five buckets. Now every time you earn money, invest the first 10% in your self. That means before you go shopping or pay your bills and debts, you should invest the first 10% of what you earn on self development ventures that will help you develop new skills, develop better mentalities and acquire knowledge that will help you earn more. This is why I try to read a book a day. So if you only learn one thing from this entire video, let it be this. Invest in yourself first. Next, save or invest 25% of your earnings to something long term. Now, I know what you're thinking. What 25% that's crazy. Most financial advisors say to just save 10%. Well, 10% is definitely better than nothing, but for most people that will not be enough to retire and you'll be older dead before you can reap the rewards. In addition, you should acquire assets. Instead of buying things that take money out of your pocket, buy things that bring money to your pocket, like real estate, businesses, stocks and bonds, these can grow exponentially as you buy more assets. The third step is to put 5% away for a rainy day. It's always good to have some money saved up for an emergency. Next, budget 40% for your fixed cost. This is where all your meals, transportation, bills and all the essential stuff. Now, if you cannot cover your fixed expenses with 40% of your wage, then you honestly should consider downgrading your lifestyle. For some of you, that could mean a massive downgrade, like moving back in with your parents or selling that Ferrari. It might really suck, but don't worry, there's light at the end of the tunnel. If you follow the tips alone from this video, it won't be permanent. Lastly, enjoy the remaining 20% guilt-free. I call this the Las Vegas Bucket. You can experiment with this money, spoil yourself, donate it to me or some charity, toss some of it into your savings account, you can do whatever. Just remember, there's no avoiding hard work and sacrifice when aiming towards success, but rewarding yourself is also important. If you don't reward yourself, your brain will get confused about why it's working so hard and you'll lose motivation and end up giving up. But the first 10% is the most important. Let's just say you work part-time and earn only $250 a week. 10% of that is $25, and you could use that to buy a business book or two, like Rich Dad Poor Dad. Maybe through these books, you'll learn to invest better, acquire some marketing tips, learn to become more productive, or learn a skill or two that earns you a promotion in your current job. Apply what you'll learn and keep doing this week after week, year after year, and over time you should be able to discover new ways to earn more. Before you know it, you'll be earning $1000 a week. And when this happens, you should still invest 10% in yourself. But this time, you'll have $100 to work with. You could buy more books, or save up and attend an advanced seminar on real estate or something. This simple concept of investing in myself first has taught me how to dropship and make easy cash, tutor people and opera consulting online, understand how sales funnels work, make money through affiliated marketing, learn how to grow a YouTube channel, and much, much more. Eventually, you'll be able to hire a mentor or two, who'll be able to accelerate your growth even further. The funny thing is, as you get richer and richer, one of the biggest problems you'll have is figuring out how to keep spending your first 10%. Imagine making a million dollars a year one day, and still having to spend $100,000 of it on self-development. Who knows, maybe Bill Gates will have a cup of coffee and take a selfie with you. Now you can somewhat experiment with the exact percentages I showed for each of these five categories. These are just what I recommend. I say 10% should be invested in yourself, just not to overwhelm people. But I personally now invest about 20% to my brain, because books and mentors have taught me to cut down on some of my fixed expenses. For example, through new networking and persuasion skills I've acquired in my self-development journey, I found a way to make deals and get free bussing around my city. While I can drive if I have to, I'd rather just bus and read on my way to a destination and save on gas. I've also found places where I can eat for free, get free haircuts, and much more. Just remember, the more you learn, the more you earn. And as you earn more, your budget for your fixed cost will also increase, so you'll be able to improve your lifestyle. The 20% you're spending guilt free also increases, so you'll be able to enjoy life more. But more importantly, that 25% you're saving or investing weekly, that also increases. So if you set this up correctly, this will generate you passive income, meaning money that just comes in automatically even when you're asleep. And in the long run, when your passive income becomes high enough, you'll be able to live off on that income alone. And that my friends is how to become rich. I just personally recommend that you never ever stop investing in yourself. And this tip goes beyond wealth, when you invest in yourself like reading the right books, your relationships, health, and happiness can dramatically improve over time as well, which can indirectly help you become richer. The sky's truly the limits when you invest in yourself first. But I want to know in the comments below, how do you like to budget your money? Thanks for watching. Hi, I'm Aaron Tupas, a positively brainwashed, and if you like this video, then choose one of the following. You can either A, subscribe and like, B, listen to the share bear over there and show that you care, C, join me in my Facebook fan page to get the latest updates, or D, hope I go bankrupt.