This Is How the 1% Manage Their Wealth

Jaspreet Singh on the 75/15/10 Rule: This Is How the 1% Manage Their Wealth

Dawn Allcot   Sun, June 25, 2023

Finance YouTuber Jaspreet Singh (of Minority Mindset fame) recently created a popular video describing how the 1% manage their wealth. It all starts with increasing wealth through multiple streams of income.  One thing to keep in mind, however — the key is not so much how much money you earn, but all about how you spend and save.

Singh and other finance experts promote the 75/15/10 rule for budgeting. It’s a simple concept — and as long as you are making enough money to make ends meet, you should be able follow this simple formula.

Here is where your money should go based on Singh’s recommendations.

75% of Your Income (or Less) Should Be Directed to Living Expenses

You should try to organize your finances so that no more than 75% of your cash goes toward living expenses. This includes fixed expenses, such as your mortgage and car loan, as well as variable expenses like vacations, dining out and entertainment.

If you aren’t earning enough to cover your expenses — much less have 25% left over after your bills are paid — it’s time to look for ways to cut costs and increase your income.

You might review all your subscriptions and cancel some. You can downgrade to a less expensive car. In an extreme situation, you might want to move out of your apartment and live with family or friends while you save money or find ways to earn more money.

To boost your income, consider taking on a side gig or asking your boss for a raise.

15% of Funds Should Be Diverted to Investments

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