there are four things that you must do after getting paid in today's video I'm going to walk you through my payday routine so I'm going to show you what I do I'm going to give you my secret sauce this works for me copy what you like if you disagree with something then simply don't do it or ask me about in the comments down below I am at your service I am here to help now let's start with this tell me if you feel the same way maybe you do maybe you don't I feel that payday
is a great day you check your bank account the direct deposit hits the money is there and I know the feeling it's like thank God I needed that money but sadly as the days go by you watch your balance decrease and you try to survive until the next payday it's stressful I know how it is but this can be fixed so first I'm going to do you this favor I will not insult your intelligence you already know the things that you should doing putting away more money for retirements investing your money making your money work
for you building passive income streams having an emergency fund you already know this I know that you know but the cost of living is outrageous everything is so expensive all these one-time expenses keep popping up every month it's never ending so it's difficult to do all these things that you know you should be doing I get that okay so let me share with you my payday routine so you can see how I build wealth and then I'm going to give you some practical tips okay so it's payday money comes in it hits my bank accounts
now a lot of these pompous rich people on social media they love to say first thing you do is you pay yourself I say I have bills to pay I don't pay myself first I pay my bills first so priority number one at least for me is to to pay your bills so your mortgage your rent car payment credit card bills student loan payment cell phone utilities Etc get those paid first okay so these rich people and their acolytes they say that you have to pay yourself first to build wealth they're essentially saying that when
when you get your paycheck the first thing you should do is set aside money to invest it no exceptions so for example if your net paycheck each month is let's just say $5,000 then the first thing you should do according to them is take 1,000 of that and put it into the stock market or go buy up real estate even if you end up not having enough money to pay your bills or your debt obligations they're saying that it doesn't matter no excuses pay yourself first and then figure out the math later okay so I
disagree with this approach I pay my bills first and here's why do you know what happens when you don't pay your mortgage you get foreclosed on and they take your home do you know what happens when you don't pay your rents you get evicted do you know what happens when you don't pay your credit card balance you pay an interest rate of 20% or more the reality is that not everyone has that luxury having enough money from each paycheck to save and invest that is the truth I don't like it but it's just the way
it is however again this can be fixed there is hope and this must be fixed so it's not something that people can immediately correct with their next paycheck which is unrealistic and I think it's disingenuous but you can do it which we'll get to and here's something that will help you I guarantee it and this is what I do routinely each month I review my income and my expenses for the month I take it on a month-by-month basis I do this on a spreadsheet Microsoft Excel I highly recommend that you do this to I am
telling you that this is a game Cher okay so when I do this when you do this your starting point will be your net paycheck so that's going to be your take-home pay so we're talking about after taxes how much money actually hits your accounts each month and I understand that your take-home pay will be affected by your 401k contributions your insurance taxes withheld Etc right so if that's what you're thinking then you're absolutely right I agree with you but for the sake of Simplicity please just start with your monthly take-home pay so this is
what I have to work with after taxes from here I pay my bills first so list out your necessary expenses so we're talking about your mortgage your rents car payment student loan payment write them down please cell phone internet electricity gas groceries so I'm not talking about door Dash or Uber Eats or Starbucks those are not Necessities those are convenience but they are not necessary so listen I trust that you can distinguish between needs and wants for this category now I look at my spreadsheets and I see how much money I have left over after
Necessities from here we move on to Priority number two which is setting aside money each month to invest so I will take $500 a month and send it to my brokerage accounts to invest in stocks or put it in my savings account and earn some interest so this is my don't touch money I'm only using this money for investing or buying assets to increase my wealth I will have this money in a separate brokerage accounts or savings accounts no comingling I will not mix this money with any other money simply because I want to stay
organized and it serves as a reminder because they're separates that I'm seriously not going to touch this money this is for my financial Safety and Security this is for my future it's for Building Wealth so I pick an amount to set aside each month and I revise this monthly amounts on an annual basis my advice is don't be too aggressive with this amount make it something that's manageable for you because you're going to need money for the other things that we haven't covered yet so just try to do at least something if you're going to
start because I something is better than nothing if you're if you have to start with $200 a month then do it if you have to start with just $50 a month then just do it again better than nothing so just make it a practical and realistic amount now let's move on to Priority number three after necessities and after investing I set aside some money for something that I'm saving up for specifically for example I'm saving up for a car or it could be a down payment on a home a vacation a new cell phone Etc
or setting aside money to pay down your debts I'm talking about your principle so paying down debts on an auto loan mortgage student loans credit card debt Etc now here my advice is going to be the same make this monthly amount that you're going to save or reduce your debt a realistic amount even if you have to start with a small amount anything is going to be better than nothing now here's my priority number four with the remaining amount of money for the month I say to myself this is how much money that I can
spend guilt-free for the month so My Philosophy is that you have to live a little I mean take take care of your responsibilities but you have to enjoy your life at least I do spend it on fun entertainment convenience go shopping do whatever you want go nuts and I'm not going to feel bad because I've taken care of my priorities I'm Building Wealth and I'm being responsible but list don't get me wrong I'm not trying to waste my money not even in this category I'm still trying to spend my money wisely like if I'm going
to spend my money on having fun that I'm going to try to maximize you know how much fun I have for the dollars that I spent and if I if I happen to have money left over in this category then maybe I'm going to roll it over into next month for my wants or maybe I'm going to use that money to further pay down my debts or maybe I'll use that money to invest it you're going to be free to do as you please that's how I see it so those are the four things that
I do after getting paid so number one pay your bills number two invest number three save for something or pay down your debts and number four have a good time now I want to bring up what so many people are thinking Brian I don't make enough money to do all these things okay so I'm glad I'm glad we're bringing this up so first of all the reality is that for the majority of people there's not much money left over if any at all after all the essential expenses cost of living has inflated faster than wages
and there's only so much in expenses that you can cut some people don't even spend money on entertainment or alcohol or designer clothes or a fancy car and the math still doesn't work out if you're in the situation here are two pieces of advice I just I hope this helps you out so number one PE people are overly fixated on reducing expenses and they neglect the other side of the equation so what is the end goal it's to be at a surplus right more money coming in than going out so cutting expenses can only take
you so far because at a certain point there's going to be nothing left to cut so just like how you're mindful of cutting expenses and saving money like that you need to also be mindful of how to make more money so it's going to be like in sports you can't just focus entirely on defense you have to work on both defense and offense they're going to be so many gurus on social media that will lecture you about oh you should find a side hustle become a social media influencer learn how to code donate plasma become
a freelancer try out dog walking listen I'm not going to regurgitate that crap if you don't want to do that stuff I'm not going to make you feel bad about not doing it okay and I'm going to share with you one piece of advice that is practical and will give you the best bang for your buck in terms of your efforts and reward my advice to you is find a higher paying job and hear me out the best time to find the job is when you already have a job so find yourself an upgrade that's
what I'm saying so do you know when is the worst time to find a job it's when you're unemployed because you will be desperate and you will settle and that's not a good look at your interview now is it just just think about it if you already have a job you have nothing to lose you can look for a new job that offers better pay flexibility benefits and if you cannot secure a big upgrade then screw it you're not going to settle because you already have a job so you can walk into the interview or
the zoom meeting relaxed and confident and honestly that'll probably help your odds of getting that job and what's the worst that that could happen they don't offer you a job well joke's going to be on them because you already have a job and if an employer offers you an upgrade then take it drop your old employer like a bad habit there is no loyalty when you are an employee so you can be courteous you can be professional but there's no loyalty your company will lay you off whenever it's convenient for them and you should leave
when it's convenient for you another way to play this is to take the new job offer and use that as leverage to get a pay raise at your current job so you basically telling your current employer I got a new job offer for 30% more pay match that or else so you're basically giving an ultimatum so with that being said if you are employed how proactive have you been about finding an upgrade to make more money how much time have you spent looking at job postings or working with a recruiter or networking how current is
your resume how many jobs have you applied for last month people spend more time casually looking at homes online or vacations to take and they spend no time looking at job postings or sending out resumés when they have a job so you should be more proactive here I'm telling you this is going to be give you the best bang for your buck in terms of effort time and results my piece of advice number two is to analyze your budget so do the budget thing write out your income and your expenses see where your biggest Financial
leaks are so trust me this is going to be a game changer so I'll tell you this this is like a secret that you'll stumble upon once you do this it's usually one category that is out of control that is your money pits so it could be dining out it could be alcohol drugs entertainment shopping spree maybe it's your dog maybe it's your sign ific other so trust me write down your expenses on a spreadsheet you will see that it's one category that is killing you a black hole that sucks your money and much more
than you thought So you you're going to be shocked at your own spending in this category the dollar figure and why am I saying that's going to be one category in specific it's because it's human nature so I want to share this observation with you so let's say that you're a rich person so I'm not talking about Uber rich I'm not talking about a billionaire but let's just say that you have a person that makes $1 million a year and I deal with these clients all the time there dime a dozen so you're going to
notice that this millionaire is spending excessively in typically one or two categories in their life so let me explain a millionaire will not spend their money on the most expensive car the most expensive watch high-end design apparel the most lavish vacations a mansion the most expensive tickets for sporting events no that's not how it is it's usually just one or two categories where the spending is outrageous so for example I have a client that spends excessively on their watch collection so my client wears a $100,000 watch but wears $60 jeans so they can afford designer
jeans but they just don't care to I have a client that has a car collection and maintenance is very expensive so this client drives a Lambo but eats at McDonald's and Chick-fil-A every week so they can afford to eat at a Michelin star restaurant every single meal but they don't feel like it they like Chick-fil-A this video is not sponsored by Chick-fil-A I have a client that spends a ton of money on Amazing vacation just excessive amounts of money but he gets his haircut for 20 bucks so it's doesn't matter if you're a millionaire if
you make little money or somewhere in between relatively speaking you are overspending in one or two categories and that is draining your money and if you're looking to fix your financial leaks you have to first identify how bad the problem is so if you think sometimes I don't know where my money is going then you really have to write out your expenses so I want you to investigate what is going on with your finances and I want to see you make improvements now if you want a free budgeting spreadsheet please come to my website so
I have a really good template for you it's free no sign up necessary you don't have to submit any information I just want to help you out come download it I'm going to leave you a link down below please subscribe I thank you for the support and I wish you a very nice day take care
