I do this EVERY time I get paid (as a 35-year-old millionaire)

Key Concepts

• Paycheck habits, financial literacy, wealth building, paying yourself, tracking income and expenses, energy drains and growth opportunities, tax planning, financial baseline, emergency fund, solo 401k, Roth IRA, brokerage accounts, opportunity cost, automating finances.

1. Introduction: The Importance of Financial Discipline

• The speaker highlights the ease with which small daily expenses can accumulate to significant amounts (over $11,000 annually).
• She shares her personal experience of lavish spending in her 20s after her blog became successful, buying Louis Vuitton and going on vacations.
• She emphasizes the importance of financial literacy and discipline, especially for entrepreneurs and creators who experience sudden income increases.
• She transitioned to a more disciplined approach after having her first child in 2019.
• The video aims to provide 11 actionable steps to manage paychecks effectively, build wealth, and avoid the "rat race."
• She mentions the importance of respecting money and being grateful for it.

2. Prioritizing Paying Yourself and Covering Essentials

• Entrepreneurs should prioritize paying themselves a salary, not just reinvesting in the business.
• The speaker references a Silicon Valley saying: "a founder who has a Porsche is a better founder" because they are no longer solely focused on making money and can focus on legacy and product.
• She emphasizes that not paying yourself can lead to burnout and doubt.
• At Lingua Marina, her team's primary KPI is ensuring she receives a specific monthly salary.
• This KPI ensures that her salary is prioritized even when making decisions about hiring or experimenting with new projects.

3. Investing with Coinbase

• Investing a portion of income immediately upon receiving it is crucial for wealth building.
• Coinbase is presented as a platform for automating crypto investments through recurring buys.
• The speaker shares her experience using Coinbase since 2017, initially buying and selling Bitcoin.
• Coinbase features:
  • Ease of Use: Scheduling recurring buys directly from a bank account.
  • Flexibility: Choosing weekly, bi-weekly, or monthly investment schedules.
  • Smart Investing: Reducing risk through consistent, small investments.
  • Educational Resources: Providing learning materials for beginners.
• A promotional offer is mentioned: $20 in Bitcoin upon signing up and making the first trade using the provided link.

4. Tracking Income and Expenses in a Spreadsheet

• Creating a monthly spreadsheet to track all income sources and associated costs is essential.
• This provides a clear financial snapshot, revealing profitable areas and areas needing improvement.
• Example: Evaluating the financial results of posting on TikTok in Spanish for four months.
• The speaker emphasizes the importance of data-driven decision-making.
• She tracks the cost of each video and her LinkedIn presence.
• She encourages viewers to start tracking even with a single income source to build the habit.
• She envisions future AI tools assisting with this process.
• "If you can measure something with numbers, you can manage it."

5. Identifying Energy Drains and Growth Opportunities

• Not all income is equal; money follows energy.
• The speaker maintains a list of activities that give her energy and those that drain her energy.
• Examples:
  • Gives Energy: Singing, creating short vlogs, filming shorts in public.
  • Drains Energy: Thumbnails, checking scripts, uploading songs on touncore.
• The goal is to prioritize tasks that give energy and delegate or eliminate those that drain energy.
• Focusing on "superpowers" that make you feel amazing.
• No more than 20% of tasks that drain energy should be present in the calendar.
• Delegate tasks that drain energy (e.g., hiring a financial advisor or virtual assistant).

6. Setting Aside Money for Taxes

• Unexpected tax bills can be a significant financial burden.
• Allocate 20-30% of income to a separate tax savings account automatically.
• This ensures sufficient funds to cover tax obligations.

7. Knowing Your Financial Baseline

• Understanding your financial standing is crucial before making financial decisions.
• List fixed expenses (rent, utilities, insurance) and variable expenses (food, entertainment, shopping).
• Use budgeting apps to automate the process.
• Knowing your baseline helps make informed spending decisions.
• Example: Limiting shopping expenses to a budgeted amount.

8. Building Your Emergency Fund

• Aim for 3-6 months of living expenses in a high-yield savings account.
• This fund should be easily accessible and not invested in the market.
• It serves as a financial safety net in case of job loss or medical emergencies.

9. Utilizing a Solo 401k for Entrepreneurs

• Solo 401k is a retirement savings tool for entrepreneurs to reduce taxes and build wealth.
• Entrepreneurs don't receive employer 401k matches, making solo 401k a valuable alternative.
• Contributing to a 401k reduces taxable income.
• In 2025, contributions can reach up to $70,000 (combined employee and employer contributions if under 50).
• Funds within a 401k can be invested in real estate, crypto, stocks, and bonds.
• Borrowing against a 401k is also possible.
• Consult a CPA to understand the benefits and rules.

10. Contributing to a Roth IRA

• Roth IRA is a retirement tool where contributions are made after tax, but growth and withdrawals are tax-free.
• In 2025, individuals under 50 can contribute $7,000.
• Locking in today's tax rate if you are in a lower tax bracket.
• Example: Investing $7,000 in a Roth IRA in S&P 500 at age 35 could grow to over $1,004,000 tax-free by age 75.
• Income limits apply: In 2025, if you earn over $165,000 (single) or $246,000 (married filing jointly), you cannot contribute directly.
• Research "backdoor IRA" strategies if you exceed the income limit.

11. Building Wealth Outside of Retirement Accounts

• Avoid storing excess cash in bank accounts.
• Humphrey Yang's strategy of keeping company cash in Fidelity money market funds or brokerage accounts.
• Money market funds offer interest (around 4% currently) and allow for easy withdrawals.
• Invest in low-cost index funds like Vanguard S&P 500 (VOO) after establishing an emergency fund and maximizing retirement accounts.

12. Considering Opportunity Cost

• Always evaluate the trade-off before spending money.
• Example: Buying a $50,000 car versus investing that money at 8% annually, which could grow to $75,000 in five years.
• Smart money decisions compound over time.

13. Automating Finances

• Automate direct deposits to savings and investment accounts.
• Automate bill payments.
• Auto-invest a percentage of each paycheck into ETFs or index funds.
• Automation eliminates reliance on willpower and allows money to work 24/7.
• The speaker has automated investments happening every week.

14. Conclusion

• The video provides actionable steps to improve financial literacy and build wealth.
• The speaker encourages viewers to subscribe to her channel and Instagram for more content.