Holes In Your Money Bucket

6 Jul 2023 · 1 min

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0:54

A short YouTube talk by Clegg explaining the metaphor "holes in your money bucket": spending faster than earning. The speaker advises increasing the inflow by disconnecting income from time (avoid selling time for money) and converting expenses into profit centers (e.g., rent your house on Airbnb, rent your car on Turo). He notes some outflows (mortgage, insurance, utilities, food) are fixed, so boosting revenue and asset-monetization patches the holes.

Chapters

You have holes in your money bucket. What does that even mean? Well, it means you are spending money faster than you make it. One of the. One of the keys to getting rich is you need to speed up your revenue generation. And one of the ways to do that is disconnect your revenue generation from time. If you're selling your time for money, you're always going to have a hole in your money bucket because you have to speed up the rate at which you earn money and slow down the rate at which you spend money. Some of the money that we spend, we can't slow it down. Your mortgage is due every month. Your insurance, your car payment, your utilities. You got to buy food. So what do you need to do? Speed up the rate at which you earn revenue. Because if the money's coming into your bucket faster than money is going out of your bucket, that is a way to patch the holes in your money bucket. The other thing you want to do is you want to turn every expense into a profit center. How can I take the things I'm currently paying for, turn them into something that pays me? You turn a house into an Airbnb, a car into a hire car or a Turo. Take your expenses and turn them into profit centers and patch the holes.