Are you looking to build wealth like the top 1% in the world or ultra-rich people. Here is a simple rule to follow that adapts to your income level, no matter how much you earn. This rule is called the 75/10/15 formula, which can help you manage money and build lasting wealth — whether you’re earning Rs 1 lakh or Rs 1 crore a year.

The beauty of this 75/10/15 rule is its flexibility. It’s a framework that works no matter what your salary looks like. The rule revolves around three key principles: spend, save and invest. Let’s break it down.

Spend no more than 75% of what you earn

The first part of the 75/10/15 rule is to spend a maximum of 75% of your income, not more than that. Your total spending covering all your living expenses should not exceed 75% of your earnings. Even better, if you manage to spend less.

If you start following the 75% rule, you will notice that you suddenly start making smarter choices with your money. You start looking for cheaper alternatives, without sacrificing quality. This 75% rule also helps you focus on value.

Remember that one peculiar quality rich people have is that they are mindful about their spending — even when they have the money to splurge, they always find ways to save.

So, if you’re able to keep your spending under 75% — say, you only spend 60% of your income — the remaining 15% is what you’ll focus on next.

Also read: What will be the value of Rs 1 crore in 20, 30 and 50 years from now after adjusting inflation?

Save 10% for a cushion fund

The second part in the 75/10/15 rule is to save at least 10% of your income for a “cushion fund.” This is essentially an emergency fund — money you set aside specifically for when life doesn’t go as planned. And by “emergencies,” we mean things like a medical crisis, a job loss, or even a natural disaster. You should never use this 10% fund saved for things like a spontaneous vacation or a weekend binge on fast food.

A good rule of thumb is to calculate your monthly expenses (everything — rent, utilities, groceries, entertainment) and multiply that by 5. So, if your monthly expenses come to Rs 1 lakh, you’ll want to save Rs 5 lakh as your cushion fund. This will give you a solid safety net in case something goes wrong.

Once you’ve saved up that cushion fund, it’s important to think about where you keep it. While most people leave their emergency fund in a regular savings account, there are better options, like high-yield Fixed Deposits (FDs) or mutual funds. These options offer higher interest rates, helping your money grow faster.

But here’s the thing — don’t keep saving money forever. Once you have your cushion fund in place (roughly 5 months’ worth of expenses), stop saving for this fund and move on to the next step.

Invest 15% of your income for your future

The third part of the 75/10/15 rule is to invest at least 15% of your income. This is where the magic of wealth-building happens. Simply put, you want to put your money to work. The whole point of this rule is to build assets that generate income for you over time, instead of just relying on your salary.

In fact, the wealthiest people don’t make money just from their jobs. They make it from their assets — things that appreciate in value, like investments, real estate, or even starting a business. And the earlier you start investing, the better.

The key lesson here is that wealth isn’t built just through earning a high income — it’s built through assets. As Robert Kiyosaki writes in Rich Dad Poor Dad, you can have a high-paying job but still be broke if you don’t own assets. Assets are what generate real wealth, and once you learn how to build and manage them, your financial future looks much brighter.