1. Track Every Dollar You Spend

The first step in controlling your money? Know where it’s going.

Review last month’s bank, credit card, and debit card statements. Categorize your spending into four main buckets: housing, automobile, eating, and everything else. This simple act opens your eyes to leaks in your financial pipeline.

Build a personal financial statement that tracks:

• Total income
• Fixed and variable expenses
• Savings rate
• Investment contributions
• Charitable giving

Awareness is the first step to change.

2. Build a Simple System That Works Automatically

Great finances don’t require great willpower they require systems. We recommend setting up three separate bank accounts:

• One for spending
• One for investing
• One for savings

Then apply the 75-15-10 rule:

• Spend 75% of your income on needs and wants
• Invest 15% for future growth
• Save 10% for emergencies and near-term goals

Automate these transfers the way your job automates tax deductions. That way, you don’t even have to think about it.

3. Make Your Money Work Harder Than You Do

Saving is not enough. If your money isn’t growing, it’s shrinking in real terms.

The key to building lasting wealth is to invest in assets that generate cash flow. It’s about moving from working for money to having your money work for you.

Focus on:

• Dividend-paying ETFs: These funds pay quarterly income and can be reinvested to maximize long-term returns.
• Rental real estate: With the right property, tenants cover the costs, and the profit goes to you.

Every dollar you invest today has the potential to create dollars tomorrow. That’s how wealth is built.

4. Invest for Cash Flow, Not Just Net Worth

You can’t pay bills with your net worth—but you can with income from cash-flowing investments.

Real estate creates monthly income through rents. Dividend ETFs give quarterly payouts. Reinvesting these earnings compounds your returns over time, creating a snowball effect.

That’s the mindset shift: don’t just buy assets buy income.

5. Commit to a Decade of Sacrifice

True wealth doesn’t show up overnight. The speaker introduced the concept of a decade of discipline.

• Spend less.
• Earn more.
• Invest consistently.

In the first few years, progress feels slow. But by year four, you’ll see momentum. By year ten, your financial reality could be unrecognizable.

Just like building a strong body requires time at the gym, building wealth requires time in the market and habits that don’t break when life gets uncomfortable.

6. Know the Risks—But Don’t Be Paralyzed by Them

All investments carry risk. That’s the game. But smart investors educate themselves, conduct due diligence, and plan for the long term.

Don’t follow every TikTok finance “guru” or gamble on the hottest crypto. Build a strategy aligned with your risk tolerance and goals.

Losses will happen. But over time, discipline and informed decisions win.

7. Stay Educated and Ahead of the Curve

Staying informed is half the battle. That’s why the speaker promoted Market Briefs, a free daily newsletter covering the economy, stocks, housing, crypto, and global trends.

It’s a great way to understand market signals and spot opportunities early. Subscribers also get access to an investing master class to sharpen their skills and uncover new strategies.

Final Thoughts

Wealth doesn’t come from guessing. It comes from knowing, systematizing, and investing consistently over time. If you:

• Track your money,
• Create a system that works,
• Put your money to work in income-producing assets, and
• Stay disciplined for a decade…

You won’t just have a better bank account—you’ll have a better life.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

The post A Step-by-Step Guide to Managing Money and Building Wealth appeared first on ROI TV.

Here’s a breakdown of the most effective strategies to take control of your money, stop living for the next payday, and start building real, lasting wealth.

1. Recognize the Cycle—Then Break It

Millions of Americans struggle to make ends meet each month. But that cycle can be broken. It starts by recognizing that money management isn’t about how much you make—it’s about how you use it.

Changing your financial future doesn’t require luck. It requires a system—and commitment to follow it.

2. Set Up Three Separate Bank Accounts

Start with structure. One of the most practical first steps is to open three dedicated accounts:

• One for spending (bills and essentials)
• One for investments (to build future wealth)
• One for savings (your financial cushion)

Keeping your money in separate accounts reduces temptation, increases clarity, and helps you prioritize long-term goals over impulse purchases.

3. Follow the 75/15/10 Plan

This simple framework gives every dollar a job:

• 75% of your income goes to spending (needs and lifestyle)
• 15% goes to investments (stocks, ETFs, real estate)
• 10% goes to savings (emergency fund)

If your current expenses exceed 75%, it’s time to trim the excess and reprioritize. Remember: saving and investing should never be optional.

4. Automate Everything

Don’t leave your future up to chance—or memory.

Set up automatic transfers from your checking account into your investment and savings accounts. This removes human error and ensures you consistently build wealth every month.

Use banks or brokerages that allow:

• Free recurring transfers
• Automated investment plans (like dollar-cost averaging)
• No minimums or fees for basic transactions

5. Be Smarter About Spending

Impulse buying is the enemy of long-term success.

Try these proven tactics:

• The 24-hour rule: Wait a day before making non-essential purchases
• The Rule of Five: If you can’t afford five of something, don’t buy one
• Need vs. Want: Prioritize essentials and delay luxury items

Financing should only be considered for appreciating assets (like a home). Never finance liabilities like clothes, gadgets, or cars unless absolutely necessary.

6. Know the Difference Between Assets and Liabilities

This mindset shift is critical to wealth building.

• Assets = things that put money in your pocket (stocks, rental property, businesses)
• Liabilities = things that take money out (cars, consumer debt, unnecessary subscriptions)

Wealthy individuals focus on acquiring assets. Broke individuals collect liabilities. Which side are you on?

7. Choose Your Investment Strategy: Active vs. Passive

There’s no one-size-fits-all, but every investor needs to start somewhere.

• Active investing: Researching specific companies (e.g., AI startups or tech stocks), higher potential returns—and higher risk.
• Passive investing: Broad, diversified funds like SPY, VOO, or VTI, offering lower risk and long-term stability.

Whichever you choose, adopt the Always Be Buying (ABB) strategy—invest consistently, even during downturns.

8. Understand Real Estate Investing

Real estate is a powerful wealth builder—when done right.

• Active investing: Buying and managing properties yourself (higher risk, higher involvement)
• Passive investing: Joining syndicates or using platforms like Fundrise or REITs for hands-off returns

Do your research, understand the risks, and make sure the numbers make sense before you commit.

9. Build a Real Emergency Fund

Your savings should be your safety net—not your primary wealth builder.

Aim for:

• 3–6 months of expenses if you’re young and single
• 6–12 months if you have a family or more responsibilities

Once your savings are where they need to be, redirect excess cash into investments to build long-term wealth.

10. Define What Wealth Really Means

Wealth isn’t a dollar amount—it’s freedom.

When your investments cover your monthly expenses, you’ve reached financial independence. That’s when work becomes optional and you’re truly in control.

But to get there, you need a system—like the 75/15/10 plan. You need discipline, automation, and clarity about your priorities.

Final Thoughts: Start Small, Stay Consistent

No matter where you’re starting, the key to escaping the paycheck-to-paycheck cycle is structure + consistency.

• Open those three accounts
• Automate your savings and investing
• Learn to spot assets vs. liabilities
• Commit to building wealth with every paycheck

The road to financial freedom isn’t about being perfect. It’s about sticking with the plan—even when life throws you off track.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence

The post How to Break the Paycheck-to-Paycheck Cycle and Start Building Real Wealth appeared first on ROI TV.