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(2) It would likely appreciate in value. (3) Instead of being underwater, Jean and John Jones now had just over
$7,000 of additional income a month in their first year. This would be a useful infusion into their Wealth Account
and in Debt Management.
We had to focus on Jean and John’s attitude toward money and create a new habit for them: the Wealth Account
habit. The thing in between the making of the money and the spending of the money is the outstanding and simple
step of paying yourself first. To put their Wealth Cycle in motion, the Joneses needed to set up an interest-bearing
Wealth Account, such as brokerage account or a relatively high interest-bearing account, say, 3 percent, from which
they could draw to invest in rewarding ventures.

WAPP: The Wealth Account Priority Payment
Pay yourself first is an axiom of the wealthy, and one that should be followed no matter the circumstances. It simply
means to take a portion of your earnings and invest it. This payment is a specific amount, paid consistently come
rain or shine. Though this is an old concept, it’s too often not understood. I’ve even heard financial advisors confuse
this with putting money in savings. I’ve also heard financial advisors who tell people not to invest any money until
they pay off their debt. The concept of pay yourself first is about creating wealth to run circles around your debt, so
that you can then spiral up your wealth and easily pay off your debt. In race car jargon, you literally “lap” your debt.
Those who do not understand or misunderstand this concept often live in a mindset of fear, the exact scarcity
thinking that got many of us to this point.
WAPP is about putting your income into a Wealth Account designated for investing and nothing else. That means
you need to set up a Wealth Account and get yourself into the habit of making a Wealth Account Priority Payment
every month, preferably an amount automatically withdrawn from your paycheck, to work in assets that generate
cash flow. That cash flow will pay off your debt, which will release you from your debt cycle forever.

How the Wealth Account Works

Here’s how the Wealth Account works. Once you’ve established the account, you pay a minimum amount into it on
a scheduled basis. This amount—$10, $20, $100, $200, $300, $1,000—and time—weekly or monthly—is at your
discretion. I’ve found that monthly is the easiest. The amount you invest is not nearly as important as starting the
process right away. The key to building wealth is to start early and do it often. That means right now. The biggest
mistake people make is to wait until they have accumulated a lot of cash or have identified a particular investment.
This way of thinking will hold you back from paying yourself first, building the account, and amassing what you
need to invest. This step is imperative; it must be done and done now. I’d post this in neon across this page if it
would make it any clearer. Every day you do not invest in yourself compounds into days you’re not creating wealth.
It is very similar to the compound interest you’re creating when you sit on debt. As the Wealth Account grows, you
will find yourself becoming more aware of investment opportunities and, even better, able to actually consider them.
Though this may seem counterintuitive, priority payment means priority payment, which means you really and
truly must pay into your Wealth Account first, before you pay your bills, creditors, or anyone or anything else.
Consider it the equivalent of your mortgage, child support, or any other financial obligation. If you can only afford
to put in $10 a month, that’s all right. You will be amazed at how quickly your wealth will spiral up.
It is helpful to instruct your financial institution to transfer money from your main account to your wealth account
via automatic debit system. With automatic transfers, you don’t have to worry about forgetting to make deposits into
your Wealth Account, you won’t have to make the decision every month, and you won’t have to deal with deposit
slips or postage. You should also set up all your accounts online so that you can review them at any time and at your
convenience and make account-to-account transfers. Most financial institutions offer online banking at no additional
charge.
Again, as awkward as this may seem, and as uncomfortable as it may be to do, the Wealth Account is the priority
payment of the month. Even in the tightest months, pay into your Wealth Account first. This has to be done as
regularly as breathing. Even if you are in debt, deposit a portion of your earnings into your Wealth Account now.
Remember, the amount you pay each period doesn’t matter; the important factor is to form the habit of regularly
depositing money into your Wealth Account and building up funds to invest in your future.
I believe you should consider setting aside 10 percent of your income for the Wealth Account. That may seem
like a lot, but there are people who belong to certain communities, religions, organizations, and groups that require
this type of tithing, and the members manage to accomplish it. The government takes a third of your earnings from