---
title: 'The Simple Payday Hack That Creates Millionaires (Still Works)'
source: 'https://youtube.com/watch?v=i_4gZxGESKU'
video_id: 'i_4gZxGESKU'
date: 2026-07-28
duration_sec: 1114
---

# The Simple Payday Hack That Creates Millionaires (Still Works)

> Source: [The Simple Payday Hack That Creates Millionaires (Still Works)](https://youtube.com/watch?v=i_4gZxGESKU)

## Summary

This video presents a step-by-step system for building wealth by dividing your after-tax income into three buckets: spending, investing, and savings. It emphasizes automating investments and staying consistent through market cycles to achieve financial freedom.

### Key Points

- **The Payday Problem** [00:01] — Most people spend first and save what's left, leaving little to invest. Instead, treat investing like a tax to yourself, automatically moving money to savings and investments before spending.
- **Three-Bucket Allocation** [00:57] — Open three bank accounts: spending (75% of after-tax income), investing (15%), and savings (10%). For a $60,000 salary, that's $2,875 spending, $575 investing, and $383 savings per month.
- **Automate and Save for Emergencies** [02:46] — Set up automatic transfers to investing and savings. The savings bucket is for emergencies only (3–12 months of expenses). Once funded, redirect all savings to investing.
- **Lifestyle Adjustments Required** [04:08] — Living on 75% of after-tax income may require cutting back. The goal is temporary sacrifice to build wealth; eventually investment income will fund your lifestyle.
- **Wealth Through Investing** [06:38] — Real wealth comes from money working for you. Invest in broad market ETFs like SPY (S&P 500) or VTI (total stock market) using a CPA strategy: Consistent, Passive, Automatic.
- **Stay Consistent Through Downturns** [11:51] — Market crashes are normal; the long-term trend is up. Continue buying during recessions (buy low) and hold through cycles. Avoid selling in panic.
- **Other Asset Classes** [14:32] — Once comfortable with broad market investing, consider real estate or businesses. But avoid chasing speculative high returns that can lead to big losses.
- **The Decade of Sacrifice** [16:49] — Commit to this system for about a decade. Over time, compounding and consistent investing can lead to financial independence where your money earns more than your job.

### Conclusion

The key to wealth is not how much you earn but how you allocate your income. By automating savings and investing in the broad market, anyone can build long-term wealth regardless of income level.

## Transcript

have a system to build wealth step by step. Let's assume that you make $60,000 step. Let's assume that you make $60,000 a year. That's $5,000 a month. The don't get to keep all that money because you got to pay taxes. After taxes, you
you got to pay taxes. After taxes, you will be left around $3,833 income taxes, you got to pay your state income taxes, and you got to pay FICA income taxes, and you got to pay FICA taxes. Now, when you get this $3,833
account, the mistake that so many people make is they just start spending money. pay for some nice stuff here and there, and then you have no money to save and invest. So, this is what we're going to do differently. This is how much money
we have to play with. Now, the question is, how do you divide this money? Because what every wealthy person does is they always save and invest their money before they spend it. So, we're going to divide this money up into three
different buckets. One bucket is going to be your spending money. One bucket is bucket is going to be your savings money. And what I would recommend you do accounts. Most banks will allow you to do it for free. If your bank is charging
So, you get three different bank accounts. And 75% of the money that's left over after taxes is going to go into your spending account. 15% of
is going to go into your investing account and 10% of whatever money is savings account. That means every month you're going to save $383 for an
emergency. Every month you're going to put aside $575 to be invested to make you wealthy. And every month the most that you can spend is $2,875. Now I know what you're going to say. How in the world do you expect me to live
Well, here's what I want you to understand. You are paying the government more than $1,100 in taxes. That's the first thing that you do. And if you can pay the government this much money in taxes, you should be able to
pay at least this much of your money to yourself to make yourself rich. This is making you rich. And I want you to make yourself rich. Because if the government tomorrow were to impose a new tax and raise your taxes by, we'll call it $900.
What are you going to do? Well, you're going to kick, scream, complain, cry, and then figure out how to pay it. Because what happens here is this money you don't even see. See, these taxes are taken out automatically. So, you have to
amount of money because you don't get the $5,000. This is the money the seeing it. And that's why I want you to essentially tax yourself. But this time, make yourself rich. Create an automatic withdrawal and distribution. That way,
automatically put into your investment account. Money is automatically put into your savings account. That way, you don't see it. Kind of like a tax. But the difference here is you still have this money. And this savings money is
emergency. This is not there to buy you a house, to buy you a car, to buy you a you in case you lose a job, in case your business goes under, or in case something bad happens. That's what this is for. I want you to save somewhere
between three to 12 months worth of expenses depending on where you are in you're not married, you don't really have a lot of financial responsibilities months worth of expenses. If you're 45 or 55, you got a family that's relying
on you, you're not very tolerant to risk, then maybe you need 6, 9, or 12 feel comfortable. Once you have this money put aside, you stop saving this money and then you reallocate this money here to your investments because your
investments are what is going to make you wealthy. Every wealthy person talks they invested into something. They invested into a business. Maybe it was stocks. They invested into real estate. They invested into this asset which made
a lot of money sitting in their savings account. You can't save your way to wealth. You have to invest your way to wealth. So, you need to start by putting the money that you live off of. Now, you're going to say, "Well, Jasp, that
is difficult. I can't live off of $2,800 current lifestyle, but this is where you're going to have to make a change. money or you're going to have to cut back on your lifestyle. Because the
honest and just real with you. The reality is, if you spend every dollar have a chance to get rich. The government's going to get rich because get paid. But in order for you to get rich, you have to have money to invest.
money is going to your landlord. If all of your money is going to your bank, if all your money is going to restaurants and food and your clothes and everything else, you have no money to invest. Yeah, you're making Gucci rich. You're making
Delta rich. You're making Hilton rich. You're making everybody else rich, but dollar you spend is a dollar somebody else earns. And I want you to put some money to spend on yourself. And when I say spend money on yourself, I don't
mean buy yourself something nice. I mean buy yourself a nice investment that's going to keep paying you for the rest of your life. And this is where you got to there? Because if you actually want to become wealthy, you have to have this.
easier if I made more money." Sure. But do you want to know the reality? More than half of Americans that are making over $100,000 a year are living paycheck aside no money to invest, no money to
save every single month. It's not how much money we make, it's what we do with the money that we make. Now, sure, if you make $200,000 a year, is it easier to save? Is it easier to invest? Absolutely. But when you're accustomed
to a $300,000 a year lifestyle and you're making $200,000 a year, it's the certain lifestyle. And so it's hard for us to downgrade. Can you rent an earn $200,000 a year? Absolutely. But you can do it here as well. And this is
little bit creative. And you got to figure out how you can fit your spending within this budget right here and not go into debt to continue funding your lifestyle. And let me be clear here. The goal isn't to live small so you can
never enjoy life. The goal is to make some sacrifices for a limited period of rest of your life financially free. But in order for you to be financially free, your salary. Because what happens if you can't work? What happens if you get sick
happens if your leg breaks and you can't go to your work? What happens if you lose your job? What happens if your company goes bankrupt? Then what? If you and you lose the ability to afford your lifestyle. But real wealth is when you
have money coming in from your money to fund your lifestyle. And that should be your goal. How can you invest your money more aggressively? Now, you might say, "Well, Despite, can't I work to increase my income?" Absolutely. But the first
step to seeing the most power from this increase in income is you got to know you are right now. Because if you can't do this now, you won't be able to do has been statistically proven. The majority of Americans that are making
to paycheck broke because they don't know what to do with their money. As they make more money, they upgrade their lifestyle. We have lifestyle inflation because when you get a paycheck, you got to celebrate with a new car or with a
vacation to Cancun. And this is where start by learning to live below your means. Once you can do the sacrifice now, as you earn more money, well, now you can invest more money as well. You can spend more money as well and you can
beauty because now you're working to earn more money while you're also investing more money. And the goal is ultimately to have the money that you make from your investments outpace the money you make from your job. And that
not happen next year. That might not happen 5 years from now. It might not even happen in a decade. But if you stick with it, it will eventually happen because now your investments, the money that your money is making is making you
more money than the money you're working to earn. And now your job is just the decide, do you want to go into work tomorrow? Do you want to travel the there, you have to make the sacrifices first. Then you're going to ask me,
got to save some money that way I have some money to protect me. I got to live easy. Maybe I got to downsize my house. Maybe I got to downsize my car. Maybe I got to sell some stuff. Maybe I got to stop going on all the fancy vacations.
investment money? How do I actually do this? And this is where you have to find the right investment strategy for you. What I like to say is that 98% of investors. But I got to give you that disclaimer, which is number one,
guaranteed to make money when you invest. In fact, you will lose money at your own due diligence and never blindly trust a random guy on YouTube. And to stay up to date on what's happening in the financial markets, my team and my
company, Briefs Media. We publish a free newsletter every day called market happening in the economy and the stock market and the housing market and the crypto market and the global economy into a fun and witty and easy to read
minutes every morning and it's completely free. So if you have not for you to join down in the description below. Now if you want to just be a you're taking this money and you're just throwing it into the economy. There are
funds. These are index funds, ETFs, and mutual funds. These are funds that'll give you broad exposure to the economy. For example, I'm not telling you what to invest in, but there's an ETF out there called SPY. If you buy one share of SPY,
you're buying a piece of the S&P 500. The S&P 500 is a group of the 500 largest companies in the stock market. So, if you're buying this, you're essentially buying a piece of the economy. There's also an ETF called VTI.
VTI is an ETF created by Vanguard which gives you exposure to the total stock investing in all the companies that are in the stock market. Now what you can do every week, it could be every two weeks, or it could be every month. I call that
a CPA strategy. being consistent, being passive, and being automatic. Every time you get paid, your money is just automatically invested into these types of broad basket ETFs. Maybe it's the S&P 500, maybe it's the Dow Jones, maybe
just investing in the economy. Investing your money is hard. And on this channel, I teach how you can start investing your money yourself. But for some of you, working with a financial adviser, somebody who is a professional will be a
hands-off and you can work with a professional who will manage and invest your money for you. And that's why I partnered with my sponsor, Money Pickle. because first they get to know you and what your needs are and then they match
you with a vetted financial adviser who would be best suited for your needs and then they give you a free consultation call with the financial adviser. That way you can get a feel of the financial adviser and see if they're right for you
or not. That way you don't have to go through a high pressure sales process good fit for you. If you're interested in learning more and you have over $100,000 in assets, the process is pretty simple. All you have to do is
for you down in the description. It takes a few minutes to complete and once you do that, Money Pickle will review your answers and then pair you with a vetted financial adviser who they believe is best suited for you. It's a
consultation again is free and then if you decide to move forward, then you can negotiate and discuss what your rates and terms look like with that financial adviser directly. So, if you want help managing your money and you want to work
sponsor, Money Pickle, can help get you paired up with a financial adviser at no learn more, I have that link for you down in the description. Here's the key, and here's the mistake that so many people make. You got to stay consistent.
CPA, consistent, passive, and automatic. The key is to be consistent. And what I mean by that is we are going to see a recession. The United States economy has seen 16 recessions over the last 100 years. That means we've seen on average
more than one recession per decade. That means we've seen a lot of market crashes. But despite the recessions, despite the market crashes, the market has still gone up for the long term. But people tend to forget that when we're
economy, when you're going through the bad period, people assume that things are going to collapse. I mean, we saw that happen 2020 when markets were when markets were collapsing. And we saw that happen in 20201 when markets were
collapsing. People tend to forget the markets go up and down. And so then the number one, they stop buying when markets are going down because economy is going to end and the markets are going to collapse and how everything
is so bad. So people stop buying. And the second mistake that people make is buy low, sell high. But the mistake that so many people make is they buy high, sell low. But if you really want to build wealth, you have to follow CPA.
Being consistent, keep it passive and just make it automatic. And that means being consistent to buy when markets are up and when markets are down. And you every week, every two weeks, every month. You just keep buying no matter
what. And the only change you might want to make is when markets go down. Maybe use that as an opportunity to buy even more aggressively because when markets go down, you can buy the good investments at a discounted price. And
away. And the reason why that's so difficult is because everybody will tell you that you better get out now before it's too late. The whole economy is going to collapse. The world is coming to an end. People freak out. It happens
every time. We've seen it happen decade after decade after decade after decade. can help you stay calm because that's how you really build wealth instead of out of everything. I mean, even if you're buying stocks at the peak before
the 2020 pandemic and recession hit, well, you'd still be higher today after the recession. Even if you're buying during the peak before the 2008 crash, during the peak before the 2008 crash, you'd be higher today if you held on
to hold on to a good investment, which is something like the broad economy. don't want to do what the 98% of people are doing. I don't want to just invest want to invest some just into the markets. I want to be a little bit more
fundamental and find unique investment opportunities. And that's fine. Now, what you're doing is you're putting money aside to invest. And now, if you economy, fine. But you have money being put aside to invest. Now, where can this
money be invested? You can invest it in individual stocks. You can invest into business. Those are the three asset classes that have built more wealth than Start with the things that have been time-t tested and proven over the long
wealth, now you can start to look at more speculative, more alternative assets if you want to add that to your portfolio as well. But remember, investing isn't always so exciting. Building wealth isn't always so exciting
and adrenaly. It's something you do over the long term internet has kind of posed getting rich as this whole thing of getting excited and having all this hype and all this fun and just making all this money
seeing so many people make nowadays is a lot of people are struggling with money because of inflation. And so you make money and you're realizing, holy crap, I have. I need a way to get rich. I need a way to make some new money. And so
people then find a way to put some extra money aside. And then you say, this 5 10% return a year is not that much. just going to take me a long time to build 50 or 60 or 100% return on my money? And so now you start to look for the more
risky assets which can make you very rich very quickly, but you can also lose all that money just as fast if not faster. And this is where you got to understand this has been time- tested and proven. Do this. And if you do want
to be involved in the speculative stuff too, make it a piece of a portfolio, not things go wrong, because guess what? Things can go wrong. We will see a recession. We will see a market crash. Nobody knows when, but I'm telling you
are going to be able to get extremely rich when that happens. And in order for you to be one of the people that gets rich when that happens, you have to have Now, if you just pass the investing, you just keep doing your thing. But if you
investments, not a trader, but more active in your investments, you have to actually capitalize on those investment opportunities. So, if you want to become wealthy, what you have to do with your paycheck is you got to divide it up. You
to put aside to protect you against an emergency. You got to have the money invest. That way, your money can work to earn your money because you worked you want your money to work just as hard. And this is going to take time to
compound and grow. I call it a decade of sacrifice. But if you stick with it for to recognize yourself financially. You stick with it. You keep working to spend your money like crazy. Now your money is going to work to earn you some more
money. And as this works to earn you more money, that's how you buy yourself eventually your money is going to start earning you more money to the point want to keep working or not because you have the assets, you have the
investments, but in order for that to work that means you can't spend all your the Gucci, the Louis Vuitton, and some of the vacations right now that we have our money to invest. But once you do that, now you can buy all the nice stuff
about the price because now it's your money working to buy you those things. It's not your labor working to buy you those things. I want you to buy the nice your labor because your labor needs to go to buy you some assets and use the
labor that your money produces to buy you the expensive, nice, and luxury things. That's how you really build true wealth. Now, before we end this video, I want to ask you because we're trying to figure out at my team here, what types
of videos to produce more of. Do you want more of foundational financial education videos like this, or do you want more market updates or more things real estate? Or is it how do you build a business? Let me know down in the
comments what types of videos you're looking more of. That way, my team can the content that you would find more helpful. In our economic system, you can't become wealthy by working a job. Doesn't matter if you are a teacher, a
truck driver, a doctor, or an executive. The way you become wealthy is by owning the right assets. That way, now you can get paid even if you stop working. Because if you stop working at your job, the money stops coming in, but you still
the money stops coming in, but you still got bills to pay.