The 75/15/10 Money System That Builds Wealth on ANY Income!

In this podcast episode, Jaspreet Singh shares an insightful and practical approach to breaking the cycle of living paycheck to paycheck by building wealth systematically. The conversation explores foundational mindset shifts, understanding the financial system's dynamics, managing money wisely through the 75/15/10 system, strategies to increase income, investing basics, and the emerging opportunities presented by artificial intelligence in today's economy.

The Importance of Mindset

Jaspreet begins by emphasizing that financial transformation starts with the right mindset. Too often, people inherit limiting beliefs about money, such as "money is evil" or "I can't afford that," which contribute to cycles of financial struggle. Developing a mindset grounded in believing "I will become wealthy" and viewing money as an abundant tool rather than a scarce resource is vital. Additionally, he frames becoming wealthy as a duty—a responsibility to care for oneself, family, and community. This mindset empowers individuals to detach the emotional insecurities tied to money and instead approach finances with logic and confidence.

Understanding the Rules of Money

The system is structurally designed to favor investors and the financially savvy, leaving many people trapped in the cycle of earning and spending that enriches corporations and lenders. Singh highlights that wealthy people approach money as a game to be played strategically, primarily by owning assets that generate income beyond their labor. Key rules include recognizing that money flows to investors, inflation benefits investors, and the tax system privileges investment income over earned wages. The role of fiduciary duty is explained through the lens of CEOs prioritizing investors' wealth, underscoring the necessity of shifting from employee mindset to investor mindset to build true wealth.

Escaping the Financial Danger Zone

Before advancing into wealth-building, Stavre stresses the critical need to escape financial precarity, starting with saving an emergency fund of $2,000. Many Americans lack even this cushion, leaving them forced into debt over unexpected expenses. He advocates for urgent, sometimes extreme sacrifice, such as cutting discretionary expenses including dining out, vacations, and even entertainment subscriptions, to quickly build this safety net. Eliminating high-interest credit card debt follows this initial saving step because carrying such debt acts as an anchor, diminishing any capacity to grow wealth.

The 75/15/10 Money Allocation System

Once stable, Singh advises adopting a systematic money management plan: spending up to 75% of income on living expenses, investing a minimum of 15%, and saving at least 10%. This framework remains consistent regardless of income level, creating discipline and clarity around financial priorities. He urges separating these funds into three distinct bank accounts to prevent accidental overspending of savings or investment money on daily expenses. Savings serve as a protective measure rather than a wealth generator, while investments are the true engine for growing wealth.

Spending Wisely and Avoiding Debt Traps

A pivotal part of managing money is intelligent spending. Singh strongly discourages financing purchases that do not generate income, warning particularly against "0% APR" deals that mask long-term cost with short-term convenience. The only acceptable financed purchase is one that appreciates in value or produces income, such as a primary residence. He also shares the "rule of five" for luxuries—only buy items if you could afford five of them outright—to curb impulsive indulgences and encourage thoughtful spending.

Increasing Income Strategically

While managing expenses is necessary, earning more money accelerates wealth-building. Singh suggests first approaching your current employer with a proposal that highlights how you can increase the company's revenue, requesting a raise tied to measurable value you create. If that's not feasible or desirable, he advocates exploring entrepreneurial opportunities, especially leveraging artificial intelligence to solve specific business problems. AI represents a rapidly growing field with myriad applications across industries, and learning AI tools can create significant income opportunities.

Investing: Starting Small and Building Knowledge

For those ready to invest, Singh explains that there is no minimum requirement; even $1 can get started in the market. He dispels the myth that investing is gambling by framing it as owning assets expected to appreciate or produce income over the long term. Investing styles range from fully delegated (working with financial advisors) to passive (index funds like the S&P 500) to active investing (researching and selecting individual assets). With historical market averages around 10%, investing consistently over decades—even modest amounts—can grow substantial wealth. He cautions against "get rich quick" schemes and emphasizes the importance of starting gradually and building understanding.

Navigating Market Volatility and Emotional Investing

Singh highlights that market prices are driven by supply and demand, which are affected by investor psychology. The modern market is more volatile and emotionally charged, which can scare average investors into panic selling. He encourages embracing volatility as an opportunity since crises often create discounted buying chances. His acronym "POOP" (Panic Leads to Overselling Leads to Opportunity Leads to Profit) captures this mindset. Financial education includes mastering emotional control to avoid becoming a source of others' profits during market swings.

Adapting to an AI-Driven Economy

The discussion shifts toward the transformative impact of AI on the economy and personal finances. Jaspreet encourages university graduates and professionals across fields to actively learn and adopt AI technologies. AI's rapid development and integration across industries parallel the internet boom but are moving faster and will reshape work dynamics. Knowing how to use AI not only protects jobs but opens new revenue streams by offering solutions to existing industry pain points. From automating client communications to optimizing workflows, AI is creating vast opportunities for those willing to learn and innovate.

Investment Opportunities Within AI

Singh explains investing in AI as peeling layers of an onion. Beyond investing directly in AI companies, savvy investors examine underlying infrastructure such as semiconductor manufacturers, data centers, energy suppliers powering these data centers, and the emerging technologies like quantum computing expected to enhance AI capabilities. Understanding where capital is flowing and anticipating future developments allows investors to position themselves ahead of the curve rather than chasing the obvious.

Practical Steps to Incorporate AI Skills

For beginners seeking to learn AI, Jaspreet recommends starting with free, accessible resources like YouTube tutorials and chatbot experiments. The goal is to explore applications relevant to one's own profession, whether dentistry, engineering, or construction, identifying practical ways AI can solve issues or improve efficiency. Examples include AI scheduling systems, virtual home staging in real estate, or automated quoting tools for service providers. Learning AI gradually while solving real problems builds valuable and marketable skills.

The Consumer vs. Investor Divide

Throughout the episode, Singh drives home the distinction between being a consumer and being an investor and user of technology. AI will make consumer spending and decision-making easier and faster, potentially fueling greater expenditure for many. Conversely, those who understand and apply AI, manage money wisely, and invest consistently stand to accumulate wealth and opportunity. The choice is framed as a fundamental divide in how people engage with the future economy.

Accessible and Inclusive Wealth Building

Jaspreet offers hope and encouragement by underscoring that wealth creation is accessible to anyone, regardless of income. He shares a striking example: investing just $4 daily from age 21 through 65 could result in a millionaire retirement portfolio. The keys are starting early, working the outlined system, continuous learning, and cultivating the right mindset. This incremental approach, combined with the 75/15/10 system, lays a blueprint for transforming financial health on any income level.