The Best Money Advice You Will Ever Receive: 4 Rules From the Top Financial Minds In The World

Summary

The Mel Robbins Podcast

Episode: The Best Money Advice You Will Ever Receive: 4 Rules From the Top Financial Minds in the World

Date: April 13, 2026

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Overview

In this episode, Mel Robbins curates the absolute best pieces of practical, game-changing money advice from four world-renowned financial experts—Tiffany Aliche, Ramit Sethi, David Bach, and Morgan Housel. The episode is structured as four actionable "money rules" that are accessible, mindset-shifting, and applicable for anyone, regardless of income or financial state. Mel’s goal: to arm listeners with the exact steps and mental frameworks needed to take control of their financial life, move from stress to empowerment, and finally create a plan they can actually stick to—starting today.

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Key Money Rules & Insights

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1. How to Face and Control Your Spending (Tiffany Aliche, The Budgetnista)

Timestamp: 09:33 – 17:18

Key Points:

• Clarity Over Guilt: Most people feel overwhelmed and ashamed of their finances because they’re guessing about where their money goes.
• The Power of a “Money List”: Reframe a "budget" as a "money list"—a tool to thoughtfully say YES to what matters, not just NO to spending.
• Step-by-Step Method:
  1. Write It Down: List every place your money goes, in words, not numbers (e.g., groceries, kids, grooming).
  2. Estimate Monthly Spend: Next to each item, note approximate monthly costs (using bank statements for reference).
  3. Total Income: Write down monthly income from all sources.
  4. Do the Math: Subtract total expenses from income—this is the “tears and tissue” step that often brings tough realizations.
  5. Categorize Expenses:
     • B = Bills: Non-negotiable, creditors come knocking if unpaid (mortgage, rent, loans).
     • U = Usage/Utility Bills: Fluctuate based on usage (water, electricity, data).
     • C = Choice/Cash: Discretionary (grooming, eating out, entertainment).
  6. Identify Your Issue: Is your problem that you don’t earn enough, or you spend too much, especially on “C”s?
• Avoid Quick Fixes: Don’t just slash all spending—understand the problem first.

Notable Quotes:

• “A budget is not there to actually tell me no. It's there to find the yes in the safest way possible.”
  —Tiffany Aliche [10:08]
• “You have to identify, do you have a 'don’t make enough’ issue or a 'spend too much’ issue?”
  —Tiffany Aliche [14:36]

Memorable Moment:

• Tiffany describes the emotional “tears and tissue” step, telling the story of a nurse realizing her overspending—underscoring how confronting the facts is the hardest but most important step.

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2. The Four Buckets That Simplify All Money Choices (Ramit Sethi)

Timestamp: 25:43 – 33:21

Key Points:

• You Probably Have More Wiggle Room Than You Think: Once you clarify spending (see Rule 1), you often discover unused resources.
• The Four Buckets (Conscious Spending Plan):
  1. Fixed Costs (50–60%): Rent/mortgage, utilities, insurance, car payments, groceries, minimum debts.
  2. Savings (5–10%): Emergency funds, short-term goals (e.g., house down payment).
  3. Investments (5–10+%): Retirement and long-term investment accounts.
  4. Guilt-Free Spending (20–35%): For joy, pleasure, and fun—spending without shame.
• Why It Matters: Knowing and assigning percentages to these buckets kills overwhelm and lets you take charge.
• Don’t Obsess: Good enough (85%) is fine; don’t paralyze yourself with perfection.
• Mindset Reframe: If you say “I’m bad with money,” you’re letting your identity hold you back. Instead, say, “I haven’t learned it yet.”

Notable Quotes:

• “You really think coffee is going to change your life? It’s irrelevant. … Know the four numbers, and you will suddenly feel totally in control.”
  —Ramit Sethi [27:21]
• “If you say things like, ‘I'm bad with money,’ I'd gently encourage you to reframe it to ‘I haven't learned the skills of money yet, but I'm changing that now.’”
  —Ramit Sethi [31:22]

Memorable Moment:

• Mel confesses to avoiding her bills—showing even successful people fear the numbers until they have a plan.

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3. How Small, Automatic Moves Create Real Wealth (David Bach)

Timestamp: 44:42 – 57:51

Key Points:

• The Hopelessness of Living Paycheck to Paycheck: 7 out of 10 Americans live this way, but anyone can escape it.
• The Power of Compound Interest: Even tiny daily savings ($27.40/day = $10k/year) adds up to millions over decades.
• Actionable Savings Challenge: The “100 Day Savings Challenge”—stash $10/day ($1,000 in 100 days), even if it’s literally in a jar.
• You Can Start SMALL: Even nickels and dimes count—habit trumps the amount.
• The “Automatic Economy”:
  • If you don’t have a plan for your pocket change, someone else (through subscriptions, auto-payments) will take it automatically.
  • App Tools: Use apps like Acorns to round up purchases and invest spare change.
• The Two Escalators to Wealth: Own stocks and real estate. If you’re not investing, you’re losing ground in a system set up for investors.

Notable Quotes:

• “Compound interest is the eighth miracle of the world.”
  —David Bach [45:09]
• “You either have a plan for your money or someone else has a plan for your money.”
  —David Bach [56:09]

Memorable Moments:

• The $10,000 Prop: David Bach physically brings $10k into the studio, illustrating how easy it is to waste that sum in $27/day “leaks.”
• Bach’s anecdote: Advising a woman in her 50s that saving $20/day can still get her near half a million in 15 years, proving it’s never too late.

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4. Mindset Mastery: Redefining “Enough” and Setting Your Own Scoreboard (Morgan Housel)

Timestamp: 61:53 – 65:18

Key Points:

• The “Expectations Gap” Is the True Source of Money Stress: When you base happiness on ever-increasing money goals, you’ll never win.
• Stop Using Money as Your Scoreboard: Money is quantifiable and thus tempting to chase, but it can’t fill existential/psychological “holes” (as described by Will Smith’s revelation).
• Your Definition of “Enough” Is the Key: Decide what enough looks like for you, not by comparison to others.
• Money Is a Tool, Not a Goal: Shift focus to what money can do for your life, not to endless accumulation.
• Anyone Can Get Good with Money: Don’t let “I’m not good with money” become your excuse—basic arithmetic, patience, and discipline are all it takes.

Notable Quotes:

• “The hole that you’re trying to fill, the psychological hole you’re trying to fill, is probably not going to be filled with money.”
  —Morgan Housel [63:10]
• “This is not a difficult thing to wrap your head around. … If you’re saying, ‘I’m not good with money,’ you’re making a choice to not get better.”
  —Morgan Housel [65:18]

Memorable Moment:

• Mel summarizes the core lesson: “Finish this sentence right now: ‘Enough for me is…’”. This introspective exercise flips your mindset from scarcity to sufficiency.

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Timestamps for Major Segments

• [09:33] Tiffany Aliche: The Money List, “tears and tissues,” and identifying your actual problem (earn too little vs. spend too much).
• [25:43] Ramit Sethi: The Four Buckets (fixed costs, savings, investments, guilt-free spending) and empowerment through simplification.
• [44:42] David Bach: Tangible savings, compound interest, 100-day savings challenge, and the “automatic economy.”
• [61:53] Morgan Housel: Mindset, redefining “enough,” and why money is a tool—not a measure of your worth.

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Notable Quotes & Speaker Attributions

• Tiffany Aliche:
  “A budget is not there to actually tell me no. It's there to find the yes in the safest way possible.” [10:08]
• Ramit Sethi:
  “Know the four numbers and you will suddenly feel totally in control.” [27:21]
  “If you’re saying, ‘I’m bad with money,’ you’re making a choice to not get better.” [65:18]
• David Bach:
  “You either have a plan for your money or someone else has a plan for your money.” [56:09]
• Morgan Housel:
  “The hole that you’re trying to fill … is probably not going to be filled with money.” [63:10]

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Structured Takeaways: The 4 Simple Rules

1. Make Your “Money List.”
   You can’t change what you won’t look at. Write it all down, categorize, and confront the facts.
2. Organize Into Four Buckets.
   Everything you earn and spend goes into one: fixed costs, savings, investments, or guilt-free spending.
3. Put Savings and Investing on Autopilot—Even in Tiny Amounts.
   It’s the habit, not the amount, that matters. Start a $10/day challenge or automate spare change investing.
4. Define “Enough” for Yourself.
   Don’t let comparison or endless striving be your financial narrative. Set your benchmark, and let money serve you.

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For Further Learning

The complete episodes with each expert, and additional resources referenced, are linked in the show notes. Mel encourages listeners to use these tools and share the episode widely—it’s designed to be a repeat resource for yourself and loved ones.

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Mel’s Final Assurance

“You can get good with money. You can do this. Once you define enough based on where you are, money stops being a measure of your worth and it becomes what it was always supposed to be: a tool.”

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If you apply even one of these rules today, you shift from passive worry to active ownership of your financial life—no matter where you start.

Transcript

[Mel Robbins]

Hey, it's your friend Mel. And welcome to the Mel Robbins Podcast. Lately, I have been getting a ton of questions about money. Questions like, Mel, I am living paycheck to paycheck. I do not know what to do. How do I save when I can barely pay my bills? Why do I keep buying things I do not need? Where is all my money going? What if I'm not making enough money to get ahead? How the heck do I get out of debt? My partner and I are constantly fighting about money. I'm just not good with money. If that's where you are right now, I need you to hear me. I get it. I've been there. I have felt the crushing stress, the shame that you feel when you cannot get out of debt, when you don't believe you're good with money. But here's the good news. You can learn how to take control of your financial life. And I want you to. That's why today you're going to meet four world renowned financial experts. They are here to give you their number one rule on how to take control of your money. Starting where you are so you feel more financially secure and you can finally create a simple plan you can start, stick to and feel and see the results. This is the best money advice we've ever featured on the Mel Robbins Podcast. It's simple, powerful changes that are 100% within your control so that by the end of this episode, you're gonna know exactly what to do first, what to do next, and you're gonna stop letting money stress run your life. If you have ever wanted an episode that you can come back to anytime you feel overwhelmed about money, an episode you can send to everyone in your family who needs help taking control of their financial life. This is it. Spring Black Friday is happening right now at the Home Depot and they've got deals on everything you need to upgrade your yard. Tackle tough trimming with the Milwaukee String Trimmer Kit and clean up those overgrown lawn edges with ease. Or you can bring your garden beds back to life with Earthgrow mulch for a fresh, clean look all season. Ready to refresh your yard? Bring it this spring with lawn care essentials during Spring Black Friday at the Home depot. Now through April 22nd. This episode is sponsored by Colgate Total Look. You've heard it a thousand times. You don't wait for a crisis to change your life. You take action. Now. Real power is being proactive, not reactive. That's where Colgate Total Active Prevention Toothpaste comes in. It's clinically proven to prevent oral health problems like cavities and gingivitis before they start so you don't have to worry later. Stop reacting and start preventing. Pick up Colgate Total Active Prevention at your local retailer today. Your future self will thank you. Hey, it's your friend Mel. And welcome to the Mel Robbins Podcast. I am thrilled about the conversation you and I are going to have. It's always an honor to be together and to spend this time with you. And if you're a new listener or you're here because somebody shared this episode with you, I just want to take a moment and personally welcome you to the Mel Robbins Podcast family. You have picked a home run of a conversation to listen to because today four world renowned financial experts are here for you. They're going to give you their number one rule on how to take control of your money. Starting where you are with what you got. You will feel more financially secure when you follow these simple rules and you will also finally create a plan that you can stick to. This is the best money advice we have ever featured on the Mel Robbins Podcast. And today I am summarizing it for you. And I know for a fact that this is the most powerful adv because I went back and re listened to every episode we have ever done about money and finances since we started this podcast three and a half years ago. My team and I've selected the absolute best, the most powerful moments, the most tactical and easy to follow and impactful advice. Then we went further. We crunched the data on what you rewatched, shared, and commented on the most, especially on YouTube. And so that these four rules about money that you're about to learn, they're gonna change your life. They certainly have changed my life. And I am so glad that you are here right now with me. So you can hear them, you can learn them, and you can apply them. And I'm gonna tell you something before we jump in. There is something that one of these four experts are gonna say that you need to hear right now. Because it's gonna be the exact same solution or mindset shift or simple tactic that changes everything about your current financial situation. Whether you're living paycheck to paycheck, whether you've made a ton of financial mistakes, you're trying to get out of debt, you can barely make ends meet, or whether you just want to get better with investing your money. There is something in this that's meant for you. And I also want to point something out. The conversation today is gonna give you four rules to get you started, but it's also gonna make you realize, holy cow, there's so much I wanna learn about taking control of my financial life. And so I wanna remind you that the moments, these four rules come from four incredible episodes. So if you wanna go deeper and listen to the full episodes with each one of the four extraordinary experts, I've made it super simple for you. You can get a link to all four of these extraordinary episodes and all of the resources that we discuss in the episodes right in the show notes. And that's always there for you as a free additional resource. These are the foremost trusted money experts we've ever had on the Mel Robbins podcast. And what I love about them is they don't just teach us the math, they're gonna teach you the mindset. And one of our experts says something that I love so much, you don't have to pay off all your bills or have a million dollars in savings to start feeling better. You will start feeling better about your financial life if you simply follow one of the rules today. Because it will be a sign that instead of feeling at the effect of everything, that you are now taking a proactive step to take control. And that's what's gonna put you in charge immediately. So let's get into it. The first world renowned expert that is here to help you today is the incredible Tiffany Alice. She is known as the Budgetista. She is one of the most trusted money experts in the world. Tiffany Alice is a New York Times bestselling author who has helped over 2 million people learn how to save, manage their money and pay off debt. Now, when she first appeared on the show and that episode is linked below in the show notes, you loved her because she's one of those people you could just listen to all day. Her advice is insanely practical. It's so easy to listen to and understand. And she can help you solve one of the biggest money problems most people don't even realize they have, which is that money stress builds when you're kind of guessing about what's happening. If you don't even know what's kind of coming in or going out of your bank account, everything feels scary and overwhelming. I mean, stop and think about that for a minute. Do you even know where your money is going? How much you spend on groceries every month or electricity or transportation, or your cell phone bill or streaming services or apps or subscriptions? Do you have any clue what's going in and out of your bank account every single day? I'm sure you don't because you haven't had any time to think about it. But Tiffany Alice is going to tell you that when it comes to money in your financial life, one of the biggest mistakes is that most of you are trying to earn more money. You're trying to earn your way out of the situation you're in. But you haven't even done the first required step, which is to get clear where your money is going. So how about we just rip off the band aid? When it comes to your finances, you need a budget. Yep, I said that word. I know you hate that word. Me too. But you've never heard Tiffany Alice explain a budget in the way that she does. And she's going to tell you, a budget is just like your mom. A budget helps you understand what's coming in versus what's going out. And hearing her explain why, this is the first step, it's gonna give you more freedom and peace than you thought was possible. So let's take a listen to our first money rule from world renowned money expert, Tiffany Alice.

[Tiffany Aliche]

So your budget is like your mom. She's there to say yes when, if, after. So it's really a say yes plan, but one that's safely implemented so you can maintain the thing that you want. Right. So you could call it a money list. That's what I usually start with because people hate that name.

[Mel Robbins]

I like the name money list. What does a money list mean?

[Tiffany Aliche]

A budget.

[Mel Robbins]

Okay. I love this reframe because I hear the word budget and I hear no and restriction. And you are saying no, that the budget is how you say yes to what's important to you. Yes.

[Tiffany Aliche]

It's not there actually to tell me no. It's there to find the yes in the safest way possible.

[Mel Robbins]

So for somebody hearing you say that and they're like, but I've never made a budget or I've never stuck to one. I don't know what my budget should be like. Where do you begin?

[Tiffany Aliche]

Step one is to write everything down. Just the words of what do I spend money on? Don't think about the month, just in general. So it's like, oh, the kids. Oh, credit card. Oh, grooming, going out. Like, just I want you to just write the words. Don't think about the money, just words. Okay, so that's first part, step one. Yes. Then step two is now you say these words on my money list. How much am I spending approximately monthly? Some stuff you'll know, like your mortgage or your rent. Some stuff you might not be sure. Go pull out your bank Statement and see on average the last few months how much you're spending on groceries or

[Mel Robbins]

eating out or grooming or electricity or water.

[Tiffany Aliche]

Yes.

[Mel Robbins]

Or any of those things that you don't even really think. Think, oh, my God, I got that bill.

[Tiffany Aliche]

Exactly. So then that's within a month frame on average. Right. So that's step two.

[Mel Robbins]

Okay.

[Tiffany Aliche]

Then step three is to write down how much you make on average every month from all of your areas. So maybe you get alimony, maybe you get child support, maybe you have a job, whatever that is. How much are you making monthly? Then you add up. Step four. You add up how much you're spending monthly and subtract it from how much you're making monthly. I call that the tears and tissue steps. Because usually people get there and they're like, can I have a tissue? So when I used to do one on ones, we would do all of that and people would be like, okay. And then I would literally just grab a box of tissues and just put it here. Because I'm like, it's about the waterworks.

[David Bach]

It's coming.

[Tiffany Aliche]

They added up. I remember it was a nurse. I'll never forget. I'll call her B. And I came to her house and it was beautiful condo. And so we did that step, and she started crying. And then I started crying. Cause baby, I'm a baby. And she was just like, I didn't realize how much over I was spending. And she said, as a matter of fact, I can't even afford the air conditioning that's on. Can I turn it off? And I was like, yes, yes. So we sat with the fan on because she just turned on the air conditioning because I was coming over. So I was like, turn off the ac. A fan is fine. That tears and tissue step allows you to see, what do you need to do now?

[Mel Robbins]

And so let's say you've done that right. And you've made the money list, and you see what's coming in and what's coming out. You're, like, faced with the reality.

[Tiffany Aliche]

Yeah.

[Mel Robbins]

Tears and tissues.

[Tiffany Aliche]

Yes.

[Mel Robbins]

And you see that you are outspending every month. What's actually coming in? What is the next step?

[Tiffany Aliche]

The next step is I want you to categorize your expenses before you get to slashing and dashing, you know, because that's what people want to do. I won't eat out. I won't.

[Mel Robbins]

Yeah, I'm never going to eat again. Never going to turn the lights on in this house. Get the candles.

[Tiffany Aliche]

So I'm like, categorize Your expenses into three categories. One, I want you to write a B next to all the bills on your list. So bills are. If you don't pay it, someone's going to come knocking on your door and say, where's the money? Right?

[Mel Robbins]

Yeah.

[Tiffany Aliche]

So put a B next to all

[Mel Robbins]

those things and give me an example. I know that sounds like a basic question, but is your mortgage a bill?

[Tiffany Aliche]

Yes. Mortgage is a bill. Rent, car note, your student card, student loans. So if you don't pay, you're likely to be sued. Think about that.

[Mel Robbins]

Gotcha. Like when you were like standing at Walmart or Sephora and you're like, yeah, I'd like 10% off this. And then you're like, oh, wait, that's a credit card. Yes, that's a bill. Got.

[Tiffany Aliche]

So a B next to all your bills.

[Mel Robbins]

Okay.

[Tiffany Aliche]

And then. And those are really like fixed expenses. So that way you understand. Right. And then I want you to put a U in front of any B that fluctuates based upon your usage.

[Mel Robbins]

Oh, I love that.

[Tiffany Aliche]

So I call these. Like the U stands for usage or utility.

[Mel Robbins]

So your student loan does not have a U. Your mortgage or rent does not have a U. But the water.

[Tiffany Aliche]

Water, electricity. So your usage.

[Mel Robbins]

Yes. The data on your phone.

[Tiffany Aliche]

Yes. And so it's important to separate those two because I want you to. You'll see that I want you to understand the level of control you have on these expenses. And whatever is not a B or ub. Everything else is a C. C stands for cash or choice, meaning that you have full choice of how you spend here. So grooming might be left over, groceries might be left over.

[Mel Robbins]

How much eating out with friends.

[Tiffany Aliche]

Yes. And so entertainment. And so now before you get to slashing, I want you to ask yourself, where is most of your money going? For many people, most of their money might be going to the B's and ubs, but for some people, it's actually all the C's.

[Mel Robbins]

Yes.

[Tiffany Aliche]

So then I. Then we have to identify, do you have a don't make enough issue or spend too much issue? And so if most of your money's going to the B's and ubs, you might not make enough. So it's not about slashing because these are your bills, you know, but if most of your money is going to your C's, your choices, and your cash expenses, then you probably have a spend too much issue. So now we need to slash.

[Mel Robbins]

Yes.

[Tiffany Aliche]

You know, because it's entertainment and grocery and. And all those things where your money is going because What I find is that frugal people want to get more frugal when things are tight. I'm like, that's not the answer.

[Mel Robbins]

Right.

[Tiffany Aliche]

You know that instead, I want you to put your energy toward learning how to earn more if all of your money's going to your bills. Because what are we. We're cutting the mortgage. What are we cutting?

[Mel Robbins]

That's. You know, one of the things that I worry about, and I'd be curious to hear your perspective, is that you and I both had the experience of being in college, and it's that opening week, and literally at the opening registration fair, there were banks with credit card tables. You get your Snickers bar when you sign up for one, and then it's free money. But I worry a lot about the fact that. That in today's world, particularly for people who are in their 20s and 30s, that social media has become like shopping with a click. And you and I had to leave our house to go spend money back in the day. And when I think about TikTok or Instagram, every other fricking suggested thing has a shop now button, and stuff gets sent to your house. And have you seen a big increase? Because you've been doing this for a while in people in the spending category, that spending has gotten so easy because of social media. It's always in your face. You always see what you're missing out on. There's an influencer that has the product for free who's like, this changed my life. And click, click, click. It's 11:30 at night. So do you see a spike in this? Or is it absolutely.

[Tiffany Aliche]

Overconsumption is the new way. We all have so much that we don't need. I mean, even I. Sometimes I'm like, tiffany, you do not need, like, another. Like, you don't even vacuum. I'm like, but that one is so cool, you know? And I'm like, like, this is influence for who? I follow. Who? I love her because. So aesthetically pleasing.

[Mel Robbins]

Yes.

[Tiffany Aliche]

But you know the ones that we're like, everything in the kitchen is aesthetically pleasing. Yeah.

[Mel Robbins]

This is these Amazon shops.

[Tiffany Aliche]

Like, yeah.

[Mel Robbins]

Click through to my Amazon thing. So I got the stuff for free. I'm gonna make money on you buying it.

[Tiffany Aliche]

A container for the cont. Yes. Like, well, who wants to eat cereal out of a cereal box? We want to eat it out of a aesthetically pleasing glass container.

[Mel Robbins]

Yes.

[Tiffany Aliche]

Like, do I need an aesthetically pleasing. You don't.

[Mel Robbins]

Yes. Don't you love her? Don't you love her as she's explaining, I'm laughing at myself because, yes, I want to eat cereal out of an esthetically pleasing glass container that I do not need. And then I wonder, why do I not know where my money's going? Because I'm not clear what I'm spending it on. I'm spending it on all these things I don't need. I just love the way she explains things because she calls you out and then puts her arm around your shoulder and laughs with you. I mean, who knew that budgeting could actually be fun? And now that you've listened to Tiffany, Alice, doesn't it make sense? Of course, this is the first rule. You have to look at where your money is going. Because when you look at where your money is going now, you're empowered to understand the actual issue that you're facing. And I wanna highlight this because I wanna make sure that you get the take way here from this first rule. And that is, what is your issue with money? Is it that you don't make enough money? Is that the issue? Maybe not. The issue is probably the second one, at least. This is the issue for me. And that's, wow, I spend way too much. Those are the two places you could be in. I don't make enough, or whoa, I'm spending too much. And once you understand what's happening now, you can take the next steps forward. That's why this is important. And here's the other thing I love about Tiffany. She says your money list is there so that you can find the yes. So that you can say yes to the things that you want to say yes to. And that's so important because so often when you and I think about money and taking control of our finances, we think, restrict, restrict restrictions, be frugal, don't spend on yourself. Bad, bad, bad. And you assume that's the only way to feel less overwhelmed, less stuck and more in control. But that isn't true. And now you know it. So here's what we're going to do. We're going to take a quick break and when we come back, I'm going to introduce you to our second world renowned financial expert. Because now that you understand where your money is going, I want to turn to our next financial expert who's going to talk about okay, with the money that you have, right, there are four buckets, only four that you need to think about when it comes to where you put your money. And when he explains it this way, you're gonna immediately exhale because he's gonna simplify this so much. You're not gonna wanna miss this. So don't go anywhere. And while you take a listen to our extraordinary sponsors, copy the link to this episode and drop it in your family group chat. Share this with somebody who is so stressed about money, who's always worried about money, maybe somebody who lost a job. This episode is the lifeline and the playbook they need. All right, don't go anywhere. We'll be right back with rule number two, the best money advice you will ever hear when we return. So stay with me. You have a lot going on between work, family, everything else that you got on your plate. Life gets so busy. What's the first thing that slips? Your health. Not because you don't care, but because it feels like just one more thing you need to manage. That's where our sponsor AG1 comes in. AG1 is a daily health drink designed to make nutrition simple. It combines vitamins, minerals, probiotics and a clinically backed formula that supports your energy, gut health, immune function and healthy aging. So instead of a cabinet full of supplements, you have one simple habit. One place to start. Because when you make your health easier to support, you're more likely to actually stick with it. AG1 is the number one doctor recommended foundational nutrition supplement. Prioritize yourself. 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Listeners can get an exclusive 20% off IXL membership when they sign up today at ixl.commel Visit ixl.commel to get the most effective learning program out there at the best price. Welcome back. It's your friend Mel Robbins. And today you and I are learning from four world renowned financial experts and we're getting the advice you will ever hear. Now, you and I just spent time with Tiffany Alice and she explained how to make a money list so you can stop guessing about where your money's going and get clear about what's coming in and what's going out. And she also helped you think about whether or not you have an earning problem or a spending problem. Okay, now that we have a clear idea of where things are and we feel a little bit more in control, let's build on that clarity with Ramit Sethi. Ramit is a New York Times bestselling author and one of the most trusted money experts in the world. He is also the host of how to Get Rich on Netflix. And he has such incredible and empowering approach to money because he simplifies the topic of what to do with your money and helps make it so easy to understand. Ramit says that there's only four buckets that you need to understand when it comes to your money, and he's gonna share those with you right now. And here's what I love about this. Once you understand what these four buckets are and why they matter when it comes to taking control of your finances, you're gonna feel empowered. One of the things that you're gonna love in particular is that one of these buckets helps you spend money on things that you love guilt free. So in this next clip from the Mel Robbins Podcast, you're gonna hear Ramit explain these four buckets. But before he does, he's gonna talk about an important issue. Because once you follow Tiffany Alice's advice and you understand whether you have a spending problem or you have an earning problem. And you take some of the steps to stop all the unnecessary spending, which of course makes you have more money to play with. Ramit says you might be surprised by how much money you have left over. And that means you're going to be ready to understand exactly what to do with it now that you see that you have it. So let's take a listen to Ramit Sethi when he last appeared on the Mel Robbins podcast.

[Ramit Sethi]

You will be quite surprised that a lot of people discover they have more money than they actually realized once they go on offense with their personal finances.

[Mel Robbins]

Oh, wow. Okay, so what are the four things that we all need to go through?

[Ramit Sethi]

Everybody needs these four numbers. These are all part of my conscious spending plan. The first is your fixed costs. Okay, so that would include your rent or mortgage.

[Mel Robbins]

Yep.

[Ramit Sethi]

Your utilities, car payment, gas, insurance, anything that's fixed. Even groceries every month. That goes there.

[Mel Robbins]

And what about the minimum debt payment? Or is that part of another category that's.

[Ramit Sethi]

That counts there? Exactly.

[Mel Robbins]

Okay.

[Ramit Sethi]

And that number, you should try to get it between 50 to 60% of your take home pay. Okay, let me, let me run through these all and then I'll tell you what they mean. 50 to 60% of your take home pay for fixed costs. Next up, your savings. How much money are you saving every month? This should be roughly 5 to 10% of your take home. And savings would be an emergency fund or money you don't need for at least one to five years. Things like a down payment for a house, etc. Next up would be investments. Roughly 5 to 10% of take home. Although I like to see it higher because investing early in life pays dividends later.

[Mel Robbins]

Okay. And then little shame for Mel Robbins did not invest early in life. Just wanted to acknowledge that when you said that because, yeah, I mean, look, people say that. I'm like, I didn't do that.

[Ramit Sethi]

Okay, Well, I wish I started deadlifting when I was 13 years old, but I didn't even know what that was, you know? So we all start from the place we start at.

[Mel Robbins]

That's true.

[Ramit Sethi]

Okay, the last category is my favorite one of all. It's guilt free spending. This is 20 to 35% of take home pay. What now? Yeah, that's right. Desserts. Mel, go get them. Beautiful cashmere coat. That's for me. Go get them. You want to go, you want to get roller skates? You want to go to your gym? 20 to 35% of take home. Now let me tell you why I love this and why I'm getting excited about four numbers. Okay. So many of us shrink our lives and we agonize over some stupid $5 purchase. You really think coffee is going to change your life? It's irrelevant. It does not matter how much coffee you buy. So please stop thinking about that. Those same people who ag and I go, oh, I'm so overwhelmed. I don't know anything. I go, what's your savings rate? They go, what's that? How much are you investing? Well, I try, but I don't really know. Okay. How are you supposed to feel not overwhelmed if you don't know any key numbers? So know the four numbers and you will suddenly feel totally in control. Some of you aren't going to be able to hit these numbers. That's okay. At least we can work with it. We got the puzzle pieces on the table. Now we can start assembling your rich life.

[Mel Robbins]

Wow. Okay. I. I think I can do this. So you just, like, carve out some time on the weekend and get your arms around these four things.

[Ramit Sethi]

Yeah. Which should take 15 minutes. Do not overthink.

[Mel Robbins]

It's going to take me a while. Really? It takes 15 minutes?

[Ramit Sethi]

Yeah. Here's what. Here's what people do.

[Mel Robbins]

How do you do it?

[Ramit Sethi]

You know, because the biggest challenge is people don't have the right logins. So their logins are spread all. They got their Fidelity account or some old 401k or whatever. So I would recommend breaking it up into two days.

[Mel Robbins]

Okay.

[Ramit Sethi]

First day is just get all your stuff assembled.

[Mel Robbins]

Love it.

[Ramit Sethi]

It's like cleaning the garage. And then the second day, 15 minutes and done. Do not overthink it. Okay, we're going for approximate numbers.

[Mel Robbins]

Okay.

[Ramit Sethi]

That's it.

[Mel Robbins]

I love you. I love you, love you, love you. You have that. What is it, the 85% rule? Get 85% of this right, you're good. Yeah.

[Ramit Sethi]

Get on with your life. You don't need to sit there and optimize everything. It's a waste of time.

[Mel Robbins]

And I also love this because it can feel so insurmountable when you've made major financial mistakes in your life, that this gives you a place to start that you can then start to get better from. And I just actually had a huge wake up moment. The fact that I can't answer those numbers like that at this stage in my life. For me, it used to be because of fear and shame and how bad the numbers were. I used to be one of those people that the bills would arrive and I would just not open them.

[David Bach]

Yeah.

[Mel Robbins]

Common cause. It Was confronting to see the debt and confronting to see how much I had spent, because I was basically shopping to escape my life with money that I didn't have. And then you'd open up the bills and be like, I don't have that money. And so it used to be that, but I think now that I've paid off all the debt and I have savings and I've, you know, maniacally saving, I don't look at it at all still.

[Ramit Sethi]

Okay, let's talk about a couple things that are so interesting about what you just said. I love the honesty. All of us have something in our lives that we are. We feel like we should be doing better and we kind of push the envelopes away. And I deeply understand this because for me it was fitness. And I grew up half joking, calling myself a skinny Indian guy. And I really wish I had not said that because it became part of my identity. And, you know, if, if any of us say something like, I'm bad with money, I would gently encourage you to not say that. Maybe reframe it and say, gosh, I haven't learned the skills of money yet, but I'm changing that now.

[Mel Robbins]

This is so important. If you just heard Ramit say I'm bad with money, I want you to pay attention loud and clear, because he's absolutely right. Or if you say something like, I don't understand, it's overwhelming.

[Ramit Sethi]

Yeah, I'm not good with math.

[Mel Robbins]

I'm not good with math. What are other things that your students say, Ramit, that really crystallize a terrible psychology around money?

[Ramit Sethi]

My family's never been good with money. We're all bad. I'm never gonna get out of this debt. We always fight about money, and I'm

[Mel Robbins]

just an overspender or my husband took care of the finances.

[Ramit Sethi]

Oh, classic. Oh, that drives me insane. Hold on, I'm getting mad, but I got. I am getting mad at multiple things right now. So let me take them each in turn. Okay, first off, what you said about not opening envelopes is totally common. But what I do want and what I do for myself is I spend one hour per month on my finances. That's it. Just one hour. I review the csp. My wife and I talk about money.

[Mel Robbins]

Hold on. The CSP was that conscious spending plan of the four things.

[Ramit Sethi]

So all those things, when you have money carved out for guilt free spending, it is literally defined so that if you want to eat and get an extra cheesecake or you want to go to the movies, like you don't have to feel guilty because you know my debt is being paid off, my rent or mortgage is being covered, I'm even saving money. I'm not trying to save money. Just like I don't try to brush my teeth. It is happening automatically. It's even better than brushing. If you're listening, I hope that's a sense of relief that you don't have to feel bad about having debt. You do not have to track a gajillion numbers that you don't even care about. You do. And I would highly encourage you to focus on four key numbers that will totally transform your life.

[Mel Robbins]

Holy cow. Ramit is full of incredible advice and I'm sure as you were listening you're like, oh my gosh, oh my gosh, oh my gosh. And I wanna remind you the link to that complete episode is in the show notes if you wanna dig in deeper. But let's focus on what he said. There are four buckets and that's the only thing that we need to worry about right now. And these buckets are so important that I wanna list them off one more time for you to make sure you really got this rule of understanding where your money needs to go once you understand how much money you have. So first bucket, fixed costs. That's rent, mortgage, utilities, insurance, car payment, minimum debt payments, groceries. These are the things that you have to pay. And I also want to remind you of what you learned from Tiffany Alice, that there are all sorts of these silly things that you do not need in your fixed budget. Like glass containers on Amazon that we are all buying. They feel like a necessity. They are not. Fixed budget, very black and white. It is the things you must pay and cannot live without. That's bucket one, bucket two, savings. That's your emergency fund. Plus the money that you may need in the next one to five years if you got some big goals like wanting to make a down payment for an apartment or a house. Bucket number three, investments. That means long term investings, retirement, 401k, IRA, brokerage accounts. And by the way, if you're thinking Mel, I. I can barely pay my bills. I can't even think about savings. The next expert that you're going to meet is going to teach you a amazing rule around how you can start saving now even if you're living paycheck to paycheck or working an hourly job. This is a genius trick you're gonna love. And that fourth bucket, guilt free spending. This is money set aside to enjoy your life so that while you're working Hard to pay off your bills, to put away savings. You're not depriving and punishing yourself. This is the bucket that allows you to buy those glass containers on Amazon if it makes you happy. Because I remember when my husband and I were nearly a million dollars in debt. It was all one big glob of shame and stress. And I felt like I couldn't spend money on anything, and I mean anything, even on things that brought me joy. The fact is that if I had had a clear plan, if I had made a minimum payment, if I had gotten my life in order faster by having a target that I could hit, understanding how long it was going to take, I would have seen that I had an extra 20 to 50 bucks every month to work with, money that I could use to go to the movies or go get a latte with a friend or take the kids to the half day, you know, admissions day at the zoo in Boston. But I lived in such a state of overwhelm because I didn't understand that there were these four buckets, so every single dollar felt like life or death, and that it had to go towards paying off debt. I felt like I had to say no to everyone and everything, including myself, because my only priority was debt, debt, debt. God, I wish I had had this framework back then. Because if I had had these four buckets, these four numbers, I would have had a very clear picture of the debt I was in, a realistic plan and timeframe for paying it off, and a way to build a life and small pockets of money to still enjoy my life at the same time. Because when you're in a situation of crushing debt, you start to believe that unless you get to a zero balance, you don't deserve to spend money on anything else. And that's the trap. And that's why I love this framework. Because when you've made major financial mistakes like my husband and I have, money feels impossible. And this second rule gives you a place to start and a way to take control step by step by step. Now, I promised that we were going to talk about how to save. How do you save when you're living paycheck to paycheck? And when we come back, that's exactly what we're gonna teach you to do. We're on to rule number three with David Bach, who is the author of 10 New York Times bestsellers. This is a man who has dedicated his life to helping people. He's globally renowned for this concept called the automatic millionaire. And he will teach you exactly what to do. I'M talking the tiniest of decisions that can help you start saving right now, even if you only have an hourly wage, even if you're living paycheck to paycheck. David Bock will teach you this technique he's taught to millions of people, and it will change your financial life and your future forever. Stay with me. We'll be right back.

[E]

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[Mel Robbins]

So just this week I went into a store and I saw the most amazing cashmere V neck sweater. And then I and I was like, what? I am not going to pay that for a sweater. And then I thought, wait a minute, I bet Quince makes something just as luxurious, just as high quality, just as stylish for a way less price. I log on to quince.com and holy cow, there is a gorgeous V neck cashmere sweater for just over $50. See, here's the thing about Quint's they have fabrics that are premium. They have cuts that make you feel elevated. The fits are so well thought out and the pricing makes sense because quints cuts out the middle person and then passes on the savings to you and me. So whether you're looking to buy something new to make your spring wardrobe feel springy or you're thinking, huh, I could really use a cool cashmere sweater. Refresh your spring wardrobe with Quince. Go to Quince.com Mel for free shipping and 365 day returns. Now available in Canada too, go to Q U-I-N-C-E.com Mel Quince.com Mel for free Shipping and 365 day returns. Quince.com Mel this is a paid ad by BetterHelp. Money runs your life whether you like it or not. Your choices Your relationships, your confidence. And if you're stressed about money, it can show up in your daily life in a lot of ways. Trouble sleeping or concentrating. Constant worry. Tensions with people you care about. If money was just math, you probably wouldn't be stressed about it. But money is identity, expectations, comparison. It's psychological and emotional. BetterHelp can connect you with qualified therapists who can help manage the impact that financial stress can bring. With a network of more than 30,000 therapists that have served more than 6 million people around the world, BetterHelp makes it easier to find support that fits your needs. You just take a short questionnaire and then you'll be matched with a therapist based on what you're looking for. And if it's not the right fit, you can switch therapists at any time. When life feels overwhelming, therapy can help. Sign up and get 10% [e-mail] Melrobbins that's betterhelp.com Melrobbins. Welcome back. It's your friend, Mel Robbins. Today, you and I are taking control of our financial life with the help of four world renowned financial experts. This is the best money advice you will ever hear, broken down into four easy to follow rules. Now we just covered rule number one from Tiffany Alice and rule number two from Ramit Sethi where he broke down the four buckets. You need to know when it comes to your money and one of those buckets is savings. And because this is one of the most asked about topics as it relates to money, I wanted to dive even deeper into savings with very tactical insights and specific things you need to do from David Bach who is going to make this part of your financial life feel doable. And I mean, even if you're starting from zero, you've never saved a dollar. David is one of the most respected voices in personal finance for over 30 years. He is the author of 10 New York Times bestselling books, including the smash hit the Automatic Millionaire. His books have sold over 7 million copies. They have been printed in 21 languages. And he has made a career out of helping millions of people just like you and me get out of debt, build real wealth and stop making the mistakes that are holding you back. And here's why I love David. I love David because he has this way of just meeting you where you are. And although a lot of you want savings advice, you also find yourself feeling like you have no money to save because you're barely getting by. And right now everything costs more. Just think about the price of gas and how that's rippling through the price of groceries or buying the small luxuries like a plane ticket or trying to do something fun over the weekend. Buying a house right now probably feels completely out of reach if you're falling behind or if there are people in your life who are struggling. What I love about David Bach in this third rule that you're about to learn is that he makes saving feel possible, even when you're starting from what feels like an impossible place. He is going to show you how small daily savings can accumulate into millions of dollars over time. Yes, millions. And he will also explain why it's never too late to start or to catch up. And one thing I wanna just set up before we jump into this moment. From his appearance on the Mel Robin podcast, as he's talking, I want you to imagine that David bach is holding $10,000 in cash in his hand. Because he is. He brought $10,000 in cash to the studio. So let's take a listen to David Bach when he was on the Mel Robbins podcast and shared rule number three and this incredible advice.

[David Bach]

A lot of people right now are missing hope when it comes to their money, which is impacting their life. So I believe that nobody should be left behind when it comes to money. That's why I've spent 30 years of my life teaching people about money. And so the challenge right now in this country, honestly melting. We're leaving people behind in this country right now, 7 out of 10 people are being left behind because they're living paycheck to paycheck.

[Mel Robbins]

Wait, 7 out of 10 people in the United States live paycheck to paycheck.

[David Bach]

Stop for a moment and take that in, because that means if you're driving down a street and there's 10 houses, seven of those 10 are living paycheck to paycheck. So if you're living paycheck to paycheck, if you've got credit card debt, you maybe have student loans and you don't have hope, I promise you will see the light at the end of the tunnel. Compound interest is the eighth miracle of the world. That's what Einstein said. So I actually borrowed a prop for us.

[Mel Robbins]

Okay.

[David Bach]

Okay.

[Mel Robbins]

Went to the bank yesterday.

[David Bach]

Kind of shocked them.

[Mel Robbins]

Wow. How much money?

[David Bach]

For those of you who are listening and you can't see me, how much money would you guess that is, by the way?

[Mel Robbins]

Are those.

[David Bach]

This is real money.

[Mel Robbins]

That's real money. I have no idea how much money. I mean, I don't know. That's a couple thousand dollars.

[David Bach]

So Interestingly. So I'm holding $10,000.

[Mel Robbins]

You're holding 10,000 DOL.

[David Bach]

$10,000 in real cash. This is a very important amount of money I'm holding here for many reasons that people will probably understand. When we've done surveys and we have asked people, how much money would change your Life? The number one answer has been $10,000. Which is fascinating, right? It's not 100,000. It's not a million. It's 10,000. And usually the reason is it would help them either pay off their credit card debt or give them enough financial freedom to leave their job or in a relationship they don't want to stay in.

[Mel Robbins]

Got it. So $10,000 buys freedom from a job

[David Bach]

or a relationship for many people, buys freedom. Now, here's the really interesting question.

[Mel Robbins]

Okay?

[David Bach]

How much money does it take to blow $10,000 in a year? A day? How much money you have to spend a day to blow $10,000? So I'm holding a brick here of 10 grand.

[Mel Robbins]

Okay.

[David Bach]

A lot of people would like this brick.

[Mel Robbins]

Yes.

[David Bach]

It's $27.40 a day.

[Mel Robbins]

Wait a minute. $27.40 a day is 10 grams.

[David Bach]

$10,000. Okay, now what happens, Mel, if you invest $27.40 a day? This explains compound interest. If you invest $27.40 a Day and you're in your 20s, and you do this for 40 years at a 10% rate of return, which is what the stock market has averaged for 100 years, you use that fund I told you about, the VTI fund, you'd have $4,424,000.

[Mel Robbins]

Say that again.

[David Bach]

If you invested $27.40 a day, which comes out to $10,000 a year, in 40 years, you'd have $4, 424,000. That's a fortune. Now, the question is, are there people who are blowing $27.40 a day on stupid shit?

[Mel Robbins]

Yes.

[David Bach]

Yes.

[Mel Robbins]

Every one of us.

[David Bach]

Well, probably there are people listening. They're like, I'm not.

[Mel Robbins]

But there are.

[David Bach]

But there are people. There are a lot of us doing it right? Because everything's so expensive now. It takes nothing to blow $27.40 a day.

[Mel Robbins]

Now, give me examples of how you can find that money, because I think when you feel having been somebody that not only was in paycheck to paycheck for decade, but then was in a situation where I had no money and was in massive amounts of debt, but when you're in paycheck to paycheck, where can you find the 20. Give me some examples of where it's hidden.

[David Bach]

You've got to go through your lifestyle, right? I mean, everything today is about convenience, right? So people are getting food delivered to them every single day. They're not really paying attention to what that's costing. People are taking Ubers every single day. I mean, there's just. You got to look at your own lifestyle. Everybody's got something that they're wasting small amounts of money on. People don't think, like, if I spend $5 a day on something that's $150 a month, that's well over a thousand dollars a year, it's five bucks, right? But if you're spending again $27.40, it's ten grand. I've done podcasts in the past, in the past where I've talked about 100 day savings challenge.

[Mel Robbins]

All right, let's do 100 day savings. What is that?

[David Bach]

The 100 day financial challenge that I have for people is this. Especially people who do not have a thousand dollars in savings. Because there's a lot of people who don't have a thousand dollars in savings. So for 100 days, save $10 a day.

[Mel Robbins]

Where am I putting it? In a savings account, Literally.

[David Bach]

You could just start off by putting it in a jar in your house, but you could put in a savings account, right? My grandmother wants to put the money in a coffee can, save for 100 days.

[Mel Robbins]

And what?

[David Bach]

Pick anything. It could be a dollar just to prove to yourself.

[Mel Robbins]

I actually like the idea of putting it in a jar. Cause you can see it. And then you're like, oh, I'm doing it.

[David Bach]

Yeah. So go and think about your life and see, am I wasting $27 a day, $27.40 a day, on something?

[Mel Robbins]

I guarantee you I am. Because I guarantee you there are subscriptions I don't even know about that are draining out of my bank account every month that probably add up to $27 a day.

[David Bach]

So I'll tell you a classic story. This is a really funny story. Actually. One of my first book signings that I did for the Automatic Millionaire was in New York City at Barnes and Noble. So I do the book. I do the book event, right? And then I take questions from my audience. And this woman stands up and she's like, david, I love you. I've read all your books. I've read Smart Women Finish rich, Smart Couples Finish Rich. I got the finishes workbook, and I'm gonna get the automatic Millionaire. And she says, but you haven't written the book that I need. And I go, oh, well, all my book titles, for the most part, have come from readers. What do you need? And she goes, I need. Start late, finish rich. And the room cracked up. And I'm like, okay, I hadn't thought about that, but how old are you? And she says, I think she was in her 50s.

[Mel Robbins]

Okay.

[David Bach]

And I said, okay, well, let me ask you a question. And go, are you married? She said, yes, I am. I said, so my question to you would be, could you save $20 a

[Tiffany Aliche]

day

[David Bach]

more than what you're saving? Could you save $20 a day more? She's like, yeah, I could. I said, could your husband save $20 a day? She goes, I would make him everybody laugh, right? I go, all right, so that's a lot of money, actually. That's $40 a day between the two of you if you just put that. And I gave her an example of a mutual fund and invested that for the next 15 years. Here's what it could be worth.

[Mel Robbins]

Worth.

[David Bach]

And the answer is, it could be worth close to a half a million dollars.

[Ramit Sethi]

Wow.

[David Bach]

And she's like, okay, so I could. So you're telling me that I could catch up a little like, that I could catch up a little bit, right? I go, let's just play this out. At 65, is it better to have a half a million dollars or have nothing? She's like, it's much better to have half a million dollars. I said, great, so start with the $20 a day. She's like, okay, I can do that.

[Mel Robbins]

Right?

[David Bach]

Cause that's the whole thing. You gotta figure out, what can you do. Some people who are listening to me right now can do more than $20 a day.

[Mel Robbins]

Yes.

[David Bach]

You gotta come up with, what can you do. But here's a big thing. Your 50s are a beautiful time to save and invest and catch up.

[Mel Robbins]

I love that David explains things the way that he does. I mean, as you listen to him and he's so passionate. And the other thing that I love about him, don't you believe him? You believe him because he has spent three decades helping people just like you and me do this. That's why he's so passionate. He knows it works. And don't you want to do this? Don't you want to take advantage of compound interest? Of course you do. Don't you want to automate this? Of course you do. And I really hope you follow this advice. Now, here's the thing. After hearing rule number three and listening to this incredible recommendation from David Bach, I Know the number one question that you're going to write to me about, you're going to put in the comments wherever it is that you're listening or watching this podcast right now. And that question is going to be, Mel, how do I possibly automate savings when I am paycheck to paycheck? He said $20 a day. I can't do $20 a day when I just do the advice of Tiffany Alice, when I divide what I have into these four buckets. You know what I got, Mel, for savings? I got pocket change. What do I do when I just have pocket change left after my fixed costs? Great question. David Bach has a recommendation. So here he is explaining that you and I live in what's called the automatic economy. Basically, if you don't have a plan for your pocket change, someone else is gonna steal it. And he's also going to recommend some savings apps that weren't even around a decade ago when my husband and I were crawling out of debt, living paycheck to paycheck. These are savings apps that can help you start saving automatically today, even if you're talking about nickels, quarters, or a dollar. And David Bach will tell you, just taking control of that tiny amount of change in your pocket, it will immediately make you feel better and more in control about your money. So let's take a listen to David Bach explaining what is the automatic economy that we're living in? And how do you start automatically saving when you're struggling to make the ends meet? Let's take a listen to David's appearance on the Mel Robbins podcast.

[David Bach]

So let me tell you what's really going on in this economy, because this is probably the most important thing you're going to hear in this podcast, okay? We are living in what I call now an automatic economy.

[Mel Robbins]

Automatic, automatic economy.

[David Bach]

An automatic economy either makes you rich or it keeps you poor. And there are a lot of people, Mel, right now becoming rich. In fact, we're going into a decade where I believe more wealth will be created in the next decade than in any time in our lifetime.

[Mel Robbins]

Really?

[David Bach]

100%. There's two escalators to wealth in America, okay? Because the system's rigged. You need to hear this, especially young people, okay? There's two escalators to wealth. They are real estate and stocks. You have to own real estate, and you have to own stocks. And this market's now more rigged than it's ever been. And when I say rigged, what I mean is everything in our country is designed for those two asset classes to Go higher. All the tax laws, all the incentives, all the opportunities that exist are for investors. If you're not an investor, you are being left behind faster than you've ever been left behind. Anyone who's in their 20s today can start investing their change.

[Mel Robbins]

That's true.

[David Bach]

You can start investing literally today. You can open an app like Acorns and be investing your change every time you spend money. You can be investing a dollar at a time in diversified portfolios. You can click a button at almost no cost. And that was not true 20 years ago. 20 years ago was hard. Sometimes become an investor with a small amount of money. Today, with technology, the whole playing field has been democratized.

[Mel Robbins]

What are some of the biggest mistakes that people make when it comes to money that keep them stuck?

[David Bach]

Okay, number one, when it comes to money, you either have a plan for your money or someone else has a plan for your money.

[Mel Robbins]

Oh, what do you mean?

[David Bach]

So. So, like, like, let that sit for a second. Either you have a plan for your money or someone else has a plan for your money. Lots of people have a plan for your money. The automatic economy is driven by your phone. Okay? That phone that we hold all day long is a money magnet. Think about that as a money magnet. What do I mean by that? That means this tool is either helping you build wealth or it's taking wealth away from you.

[Mel Robbins]

Oh, hold on. So the phone is either helping you

[David Bach]

build wealth or it's taking money away from you. And by the way, in both cases, it's automatic. So what's happening today? There's never been greater technology ever, in the history of our lifetime to separate you from your wealth. But nobody wants to separate you, Mel, from your wealth once. They want to separate you from your wealth for your lifetime. They call it the lifetime value of a customer. Okay, so when I bring you into whatever I'm selling you, I don't want you to buy from me once. I want you to buy from me on a subscription level. I want you to be paying me. Whether everybody think about Netflix, the gym, every single service, your vitamins, your creams, your lotions, and your potions, everyone's got you signed up to pay them automatically if you go through. Open up your credit cards or someone. One of your people in your office already told me they did this. Use a system like Monarch or Ynab, right? These are different software systems where you can track all of your expenses and you can see who are you paying monthly. People have lost touch with how many people are attached to their paychecks.

[Mel Robbins]

Oh, when he said this on his appearance on the Mel Robbins podcast, I felt like the money creepers were coming from the grave to steal my money from my pocket, didn't you? I remember the second this interview was over, I picked up the phone and called Chris and was like, we have to get control of our money. And I was shocked by the number of subscriptions that I was paying for that I wasn't even using. I had no idea that I was still paying for it. And that's why it's so important for you to hear this. And it loops all the way back to Tiffany Alice's money, that if you do step one and you get a handle on, where is your money going? This is what David's talking about. It's going to the automatic economy. And if you're not aware and you're not specific and you're not looking at the money that you have and being intentional about it, taking control of it, if you don't have a plan for your money, someone else is gonna steal it from you. This is a huge wake up call. But I also love that he gave you practical strategies for how to start saving now and why it matters. So daily choices, they set you up for a better future. So here's your simple question for the next week. Just notice your small spending. The subscriptions you forgot about delivery fees, convenience spending, like getting Uber eats instead of walking or driving to pick up your takeout. Those little, ah, it's only a. Then choose one tiny action, cancel one subscription, or download the app like Acorns. In fact, there's a couple sponsors that offer free apps that help you identify subscriptions and cancel them. I mean, anything that helps you take control, stop somebody from just draining the money from your paycheck and build a little breathing worm. Even if it's $5, even if it's a dollar today, it sets you on the right track to save more. And then you can accumulate compound interest, which is how you can grow your savings easily, effectively, and automatically. So David just gave you the eighth wonder of the world, which is compound interest. He also gave you kind of a cold bucket of water in the face about the importance of really getting a handle on who's taking your money because you live in the automatic economy. He also gave you strategies to start saving pennies on the dollar every day. Tiffany gave you the budget. She gave you the question, do I need to earn more or do I have a spending problem? Ramit gave you the four buckets. But here's the thing. I realize we have to go a layer deeper because you just got the tactics and the math and the buckets and exactly what to do now. We gotta change the way you think about your life and you think about money. We gotta change your mindset. And that's why I wanted to introduce you to Morgan Housel. Now, when Morgan Housel appeared on the Mel Robbins Podcast, there were so many listeners from around the world that wrote in saying, I am forever changed. And I can tell you Morgan is unlike any other expert we've ever had on the Mel Robbins Podcast. Morgan Housel is the best selling author of the Psychology of Money and one of the most trusted financial thinkers in the world. His insights are really profound because it's not about what to do with your money. It shifts entirely how you view the role that money plays in creating a fulfilling life. So let's take a listen to New York Times bestselling author of the Psychology of Money, Morgan Housel, when he appeared on the Mel Robbins podcast and taught us how to shift our mindsets and your expectations and how that helps you take control of your financial life.

[Morgan Housel]

What happens with expectations for a lot of people is, look, if I said I want to be a 10% better dad, that's a good goal, but what does that mean? What does that even mean? How do I track that? How do I measure? That's impossible. But if I said I want, I'm living in a one bedroom apartment and I want a two bedroom apartment, that makes sense. If I said I want three new pairs of jeans, that's easy to wrap your head around. Money is so quantifiable. It's so easy to just say, right Now I'm making $20 an hour, I want to get to 25. I can measure it so quickly that it becomes this thing where we chase money because it's so easy to measure and we chase spending because it's so easy to contextualize. And so if you don't have a good idea of what a good life looks like, it's very easy to just say, a good life is one in which I have more money. Because it's so much easier to understand than how can I become a better dad? How can I be a better parent, a better spouse, a better friend, a better worker? That's hard to wrap your head around. Will Smith had this great, I thought it was so astute and profound. He wrote this in his biography. He said when he was depressed and poor, he could tell himself, if only I had more money, all my problems would go away. And that Gave him hope. I just need to go out and make more money. And once I have more money, all of my depression, all of my doubts will go away. And then he became rich, and he was still depressed. And then he said he lost hope because he couldn't say, if only I had more money. And so we chase money because it's so easy to wrap our heads around, and we chase it with the idea that it's the solution to all of our problems, even if it can solve some problems, but not the biggest ones. The hole that you're trying to fill, the psychological hole that you're trying to fill, is probably not gonna be filled with money.

[Mel Robbins]

So the takeaway that I've got from what you just shared, which is much deeper, is to ask yourself, is, what is the hole that money is trying to fill for me? And are there things that I can do right now in terms of redefining what it means in my 20s or my 60s to be a good friend or to have a good life or to take better care of myself that don't involved hitting myself over the head about my financial life?

[Morgan Housel]

Exactly. That's it.

[Mel Robbins]

Got it.

[Morgan Housel]

The first step is realizing that a lot of your money woes and a lot of what you're feeling in terms of falling behind and a lot of your gap between what you have and what you want is solely a factor of your expectations. Because I think the pull is so profound in our heads that if only I had more money, these problems would go away. It seems like, how could that not be true? And I think the people who have experienced it would say, no, it can be true, just much less than you thought.

[Mel Robbins]

What if you don't think you're good with money, though? Like, cause. Cause for a long time, I had a story in my head. I'm just not good with money. I'm bad with money. And let's say you're somebody who's gone through a divorce. You're financially wrecked. You gave all the power to your partner. Now you're starting over. Can anyone get good with money for real?

[Morgan Housel]

You can if you want to. And I think the people who say, I'm not good with money don't want to be. They use that as their excuse to

[Mel Robbins]

say, come on, really?

[Morgan Housel]

I think that they use that as their excuse. This is not a difficult thing to wrap your head around. This is very basic arithmetic. Spend less money than you make. Save the difference. Be patient. That's it. This is what we're talking about. You can explain this to a 5 year old. And so if you're saying I'm not good with money, you're making a choice to not get better.

[Mel Robbins]

Wow. I wanted to end his clip there and I'm going to tell you why. The reason why is he is so matter of fact, and I want to repeat some of the words that he said to you. This is not a difficult thing to wrap your head around. This is very basic arithmetic. Spend less money than you make. That's Tiffany, Alice, Save the difference, which is Ramit and David Bach. Be patient. That's compound interest. Those were all the tactics. And I also wanted you to hear him be very blunt with you because while it sounded harsh, he was telling you the truth. If you're saying I'm not good with money, you're making a choice to not get better. You are listening to this episode. You are sharing this episode with family members, with your spouse, with people that you care about because you want to get better. You now have a roadmap for exactly what to do to start spending less money than you make. Saving the difference and being patient. That is the advice that has been around since the beginning of time. It's boring and it works. You can get good with money. You can do this. And you've invested all this time to listen up until this point. So I know you want to. And I hope you heard the last thing he said because he just put into words something that most of us never realize that we're doing. That you turn money into a scoreboard for a good life. When money becomes a scoreboard, you can never win because there's always someone with more money. So here's the takeaway. Your money stress isn't only about what you have. It is about the gap between what you have and where you are right now and what you think you should have compared to other people. If you don't define what a happy, content life is for you right now, your brain will turn money and chasing money and buying things into something that you will never actually reach. Because you will keep moving the goalpost. You will keep feeling behind. You will keep seeing everyone else and everything that they have as more, better, something that you're missing. And you'll keep chasing a number instead of starting where you are, doing the three simple things that you've just learned that you need to do. And then following this fourth rule and flipping your mind around money and use the money that you have to start building a life that you're proud of where you are. So here is the assignment. Finish this sentence right now, enough for me is, and maybe for you, it's Enough for me is bills paid on time Enough for me is no missed credit card payments Enough for me is $1,000 saved over the next six months. Enough for me is contributing to retirement or opening up one of those apps and starting to save change. Enough for me is I can take my kids on a trip this weekend without guilt. Enough for me is I can buy myself something without guilt because I know where my money is. Enough for me is following the advice on this podcast and giving myself a pat on the back because I, for the first time in years, sat down on a Saturday or a Sunday and spent half a day following all this expert advice. And now I actually feel a lot better. Once you define enough based on where you are, money stops being a measure of your worth and it becomes what it was always supposed to be, a tool. A tool for peace, for options. A tool that gives you back time, a tool for the people you love. And because of everything that you've learned in this episode from these four amazing financial experts, that's what you can achieve. And I want to make sure that you have all of these takeaways at your fingertips that our extraordinary experts taught you today. So let's just go through them. First, rule number one, you cannot change what you will not look at. So start taking control. By following Tiffany Alice's guidance on creating a money list, it will help you understand where your money is going. And I want you to be honest with yourself whether you have a I don't make enough money or if your problem is I spend too much money. Second, the second rule came from Ramit. Know your four buckets. He taught you about the numbers, these four buckets that money fall into, and that simplifying your money into these four buckets is the fastest way to stop guessing, to be intentional, and to feel in control of what you got. And those four buckets are very simple. Fixed costs, savings, investments, and guilt free spending. And third, David Bach taught you about the eighth wonder of the world, compound interest, and how tiny daily automatic choices create massive outcomes in the future. He also taught you about the fact that you live in the automatic economy, which is why you need a plan. Because if you don't have a plan for your money, someone else is gonna have a plan for stealing your money. And you don't need a perfect plan, you need a consistent one. Whether you're starting to save a dollar a day, $5 a day, $10 a day, $20 a day, it doesn't matter. The amount isn't the point, the habit is. And I loved his specific recommendations on how you can achieve this, regardless of how little or much you make, and make it automatic. And the fourth rule, define enough for yourself. Because if you don't, you will chase money forever and you will never have enough. Comparing yourself to others, chasing money, chasing things that you need to buy. It steals your happiness and it keeps you feeling overwhelmed, stuck and dissatisfied. If you can learn how to be content and happy where you are by defining what enough is for you right now, you create happiness and control starting today. And if you need more support, I'm gonna remind you that the links to all four of these incredible episodes with these world renowned experts are linked right in the show notes along with all the resources we discuss in this episode I post. I promise you, they are so worth your time. No matter what your relationship with money is, no matter what your balances are in the bank, how long it's been since you've opened up the banking app, or never at all. Regardless of what you are dealing with, these experts are here to help you feel more powerful and in control. And to give you the step by step plan to build the life you want using money as a tool. And if no one else has told you this today, as your friend, I wanted to be sure to tell you that I love you and I believe in you and I believe in your ability to create a better life. And there's no doubt in my mind that if you take absolutely everything that you learn today, these four rules from these amazing world renowned experts, and you put it into practice, like for real, not for money's sake, but for your sake sake. For a more meaningful life's sake. I promise you, you can do this and you will start feeling better the second you do. Alrighty. I'll see you in the very next episode. I'll be waiting for you there the moment you hit play. Okay, great. It was the french fries, everybody. We put pickles on them. Green for money. I did not follow any of the rules about mindful eating over lunch, but yeah. Yes, exactly. Great. You ready, Ben? Awesome. Okay, now, of course, here comes a frog in the throat right when we're about to start. Let's hit it with some honey.

[Morgan Housel]

Really?

[Mel Robbins]

It's just honey. Okay, here we go.

[Tiffany Aliche]

Yep.

[Mel Robbins]

Hold on a second, let me get up. Is it Chris? Like, who's here? Are you hearing it, Jesse? That's how we do it, people. Okay. Oh, and one more thing. And no, this is not a blooper. This is the legal language. You know what the lawyers write and what I need to read to you. This podcast is presented solely for educational and entertainment purposes. I'm just your friend. I am not a licensed therapist and this podcast is not intended as a substitute for the advice of a physician, professional coach, psychotherapist or other qualified professional. Got it? Good. I'll see you in the next episode. SiriusXM podcasts. A dream is a wish your heart

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[Mel Robbins]

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[Morgan Housel]

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