ilmscore | Prediction Details
"The fourth law of money that you have to understand is that your money is blind it needs directions if you do not tell your money where to go it is going to get lost so what you need to do now as the owner of your money is you need to understand what each dollar that you earned needs to do that your money has a job that way it can earn you more money and the only way that you can do that is if you give your money directions The easiest way to do that is to create a financial system for yourself for example I talk about creating a system like our 75 15 10 plan which means that from now on every single dollar that you earn is going to follow this funnel it's going to go down the system where 75 cents out of every dollar that you earn is the maximum that you can spend 15 cents out of every dollar that you earn is the minimum that you're investing and 10 cents out of every dollar that you earn is the minimum that you should be saving Now what you're doing is you created a financial system you're always paying yourself first you're putting some money aside for your savings and you know the maximum that you can spend Now if you can you want to do less of this and more of this but this is the type of financial system that you need to create because now what you're going to do is you know okay this is the money that I'm going to invest this is the money that you're using to buy assets every single month and this is the money that you're using to build up your savings cushion after you build your savings cushion somewhere between 3 to 12 months worth of expenses depending on your risk tolerance You don't want to be saving any more money so you're going to allocate this right here so now you're investing 25 of every dollar that you earn"
By Minority Mindset | October 1, 2023 | Pending
From video
The Secret To Actually Earning Passive Income | Jaspreet Singh 01:26:37 - 01:28:08
Interpreted Prediction
A structured financial system, such as the 75/15/10 plan (75% spending, 15% investing, 10% saving), is crucial for directing money towards asset acquisition and savings. After building an emergency fund (3-12 months of expenses), the saved portion can be reallocated to investments, potentially increasing investment to 25% of earnings.

Prediction Details

Topic
Risk Tolerance and Financial Planning

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