We have hope in our future

Our neighbor is a broker. We decided to finally talk to him, before we moved to set up accounts. After speaking with him, we are confident that we can set up several funds for our family. We decided to have a fund for life insurance, a retirement fund, and a college fund for Mina.
He was telling us that he tells his clients to have 3 "buckets:" a now bucket, later bucket and a never bucket. The now bucket you should try to set up money in account that equals up to 3 times your pay. I don't think we can do this, unless we sell our house with a profit. So we hope to use the money we get from that if we get a profit. The later means anything in the future: car, house, children's wedding...etc. The never bucket is your retirement and life insurance. He says that we can do it if we set aside 10% of our income every month. We live paycheck to paycheck now, but I think that we can make it work. We just have to budget better. Fred got a raise a few months ago and we just made increased our cost of living. So Fred and i agreed to automatically take the 10% out of his paycheck and move it. This way we have to live like that. Broker said that with the 10% you can retire with a good lump of money