What's the State of Your Financial Estate?

I think you'd be shocked how many of the worries and anxieties you have are actually based on money. And I know money. Money's not the most important thing in the world. No, it's not. You are correct. It's not the most important thing in the world, but it is right up there with oxygen. What does that mean? Well, you got to have it every day to live. And when you don't have enough, you feel like you can't breathe.

Ask you a question. Do you know the state of your financial estate? And when I ask that question, you may be thinking, I don't have enough money to have an estate. Everybody has a financial estate. It doesn't matter whether you're rich, poor or middle class. You could be living in the biggest mansion in Tampa, Florida, or you could be living under a bridge. Everybody has a financial estate. Do you know the state of your financial estate? So you say, mar. What is an estate? Well, there are two definitions when I googled it that it came up with. We're going to go with the second one, but I'm going to tell you what both of them are. So an estate, an extensive area of land in the country, usually with a large house owned by one person, family or organization. We're not going to use that one. That's not the one that I'm. That's not the estate I'm talking about. This is the one. I'm talking about all the money and property owned by a particular person, especially at death. All of the property and money owned by a particular person. That's the one I want to talk about. So what is the state of your financial estate? So I wrote this book.

Back in 2006. It's called from the Trash man to the cash, how anyone can get rich starting from England. This book has impacted thousands upon thousands of lives. Okay? So in that book.

I taught a concept called how strong is your financial house? So that concept is the concept I want to share with you today. So when I say everybody has a financial estate, this is what I mean by financial estate. I mean your perception of money and all things having to do with money. So what is the state of your financial estate? This is the state. This is the blueprint right here for a. For a sick person, financial estate. So if you want. You. If you want to have a sick financial estate, this is the blueprint. This is what your house looks like. It looks like this. It looks like this. It looks like.

This. And maybe a little bit of that. And then you got a door. Okay? These are windows. So say what. What do you mean? This is the state of my financial estate. So your financial estate is. This is your income window. So you make money. Where do you make money from? Well, probably if you're like most people, this is you.

Right? You make money from your.

What, job. So you are the only thing producing income for your family. For your financial estate, you are the only thing. Or if you're married, maybe you and your spouse both, okay, so you and misses you.

Okay, Y' all both have a job and your money comes in here. Now if you are. If your financial estate is sick, this is your income window. This is your.

Outgo window.

Oops. This is your outgo window. So when your money comes into your income window, it goes out your outgo window in the form of bills. So the reason your financial estate is sick, if it's sick, it is sick because you think the primary purpose of money is to pay bills and every now and then to buy things that you don't need or maybe some things that you do need. So you think the primary purpose of money is to buy things. So if you think the primary purpose of money is to buy things and pay bills, you're the, the. The. The state of your estate is you have a sick financial estate. And, and most people who live like this struggle financially their whole lives. Why? Because they spend every dime out of every dollar. Every dollar out of every 10, every 10 out of every hundred. Every hundred out of every thousand goes to either paying bills or buying stuff. You cannot. This is not sustainable long term. This is the state of your financial estate where if this is how you do money, when you die, your family is going to have to take up a crowdfunding campaign to eat, to like, have a funeral, like either to cremate you or to bury you. And I don't want to be morbid, but that's the reality. The reason people end up having to do that is because they had. Did not manage their money well. And you're not going to ever manage your money well. You won't ever do the right thing with your money. If your perception, if what you think about money, if what you think about money.

That'S a light bulb. If what you think about money is off, if what you think about money is off, then you will never do well financially. You have no asset protection, which means your roof is leaking, your foundation is shabby. It's built on lies. Lies that you believe that the primary purpose of money is to pay bills and to buy things. And so your Financial estate is very sick. And until you get to the point where you do more with your money than pay bills and buy stuff, you will never have a healthy financial estate. Okay? So that's, that's a sick financial estate. The second kind of house is a stable financial house.

And if you're, if you have a stable financial house, you've got this window, you've got this window and you've got this. That was a disproportionate window. You got this window, you've got this window, you got this window. And.

More than likely this is the biggest window in your house. So how do you make your money? Well, probably from your job or if you're like me, when I was living like this, I had my own business, right? So you either make that money from your job or your business. The money comes into your income producing asset window.

Okay? The money comes into your income window.

And when it comes into your income window, what you do is you pay your bills, it goes down and goes out your outgo window. And then you borrow money and you have your WRL window. WRL stands for Wealth Reducing Liabilities. And what you do is you pay your bills on time, so you pay them in a timely manner. So when you pay your bills on time now you have good credit. So the bank will loan you money and credit card companies will loan you money. And so what happens now is some of your income goes down here in the way of bills, but some of it goes down here to just maintain that good credit. And so now my income comes in here, it comes down here, and it comes down here and then goes out the outgo window. So this is a stable financial house. I do have some asset protection. I might only have insurance. I probably don't have an estate plan. I may not have a will, but I've got. And then it's built on half truth. What's the half truth? Well, as long as you've got good credit, everything's going to be okay. If I can't afford it, it doesn't matter because the bank will loan me enough money to buy it. Now the interesting thing about borrowing money, it's a better idea to borrow money when you don't need to than it is to borrow money when you do need to. Isn't that kind of like paradoxical? Like if you don't need to borrow money, that's the best time to borrow money. That's why rich people, this is why rich people borrow money. Because we understand if we borrow money. Are you all tracking if we borrow money. We can use the bank's money cheaper than we can use our own. But poor people borrow money like they can't borrow, use the bank's money cheaper than they can use their own because their money's costing them everything. And then the bank's money is costing them everything, plus interest. This is a stable financial house. As long as you continue to make enough income to pay your bills on time and maintain good credit and you don't let this get too out of control. Now you're. This, this house will never make you rich. This house will never make you, like, financially successful. This house will never make you financially strong. But you can be financially stable. This is, this is when people say I want to be. Well, that's not even financially secure. That's just financially stable. You are financially stable. As long as you don't have any major catastrophes, right then you're going to be okay. This is how I lived for a long time until I found out what. There's a better way to live. There's a better way to live than being stable. Oh yeah. This is the one that changed the game for me when I realized this is the house of houses. This is my greatest opportunity to have a very strong and successful financial house. I have asset protection. What does that mean? It means I have enough insurance to replace my income for my family if I die and pay off any debt that they want to pay off. And what does this mean I have? This is built on the foundation of truth. What is the truth? The truth is that I've got an income window. The truth is I need another window. I've got to have one of these, not just these three, but this window is the window of windows. This is, that's where the magic happens. So you have a business or you have your job. So if you got your business or you have your job or maybe you have both. Income comes into your income producing asset window. Income comes into your income producing asset window. Your IPA window. Nope.

Income comes into your income window. And then when you have a strong financial house, this is what has to happen. The first thing you do when you get money is you put that, take some of that income and you put it into your IPA window. What's ipa? IPA stands for income producing assets. You put some in your income producing assets windows. And then when you first start putting money in your income producing asset windows, nothing happens. So you take some of your income, put in your income producing asset window, and then some of the money comes to pay your bills. And then Some of the money comes down here to your wealth reducing liabilities window. This is your outgo window. Some of it comes down here and then it comes out your algo window. So your cash flows in this direction, in this direction and in this direction. Now the thing about having this income coming over here, like when you first start putting money into your income producing asset window, it doesn't do anything. It doesn't make you any money. This is why most people don't do it. Most people are so addicted to a paycheck and so they're so addicted to immediate gratification that they don't allow themselves to defer gratification long enough for this window to get big enough to like work its magic. So what happens eventually though? You keep putting money over here in this income producing asset window. Guess what happens eventually it takes some money and puts it back in here and then you. Then what you do, then what do you do? You put some more money in here. You buy or build or acquire or accumulate or create some more income producing assets. This window gets bigger and so now you've got more income producing assets putting money over here. So I've got Trash man to cash man. That book makes me anywhere from 8 to $12,000 a month. I've got Boss moves, that book makes me anywhere from 18 to $70,000. I've got my make more offers challenge funnel. Just tickets make us between 80 and $110,000 a month. These are all income producing assets. And then once you have an income producing asset window that's really, really big, eventually it puts all your income back over here. It pays all of your bills and pays off all of your debt. The objective is to get this window to be the biggest window in your house. And how do you get it to be the biggest window in your house? By focusing on it and continuing to put income producing assets in it. Eventually this window pays all the bills.

Pays all the bills on time. The business has the credit because all the bills are being paid on time. I max out my American Express card the way income producing asset window pays it off. And then what happens is eventually this window can get big enough to sustain not only you, but you and your legacy. That's the objective. The objective is not making a bunch of money just so I can have a nice car and just so I can live in a nice house in a nice neighborhood. There's nothing wrong with nice cars. I've got nice cars. There's nothing wrong with a nice house. I have nice houses. There's Nothing wrong with having nice things and jewelry and art and all that, all that stuff is fine. But that's not the primary objective. The primary objective is to have a income producing asset window that is so big that if your family has to worry about something ever again, money ain't it.

Up here, this might look like some insurance and it'll look like wills, it'll look like an estate plan. Estate plan. All of these things are things that you do because this gives you the ability to, to do it.

I'm telling you, when you live like this, you have a strong, successful financial house. You don't just have a stable financial house where you're paying the bills and maintaining good credit. You don't have a sick financial house where all you're doing is paying bills and buying stuff, but you have a very strong and successful and sustainable financial house that can, if you do this right, this can sustain your family for generations. That's the game changer and that's how you can know. All you have to do is ask yourself this question. What do I do with most of my money? You want to know the state of your financial estate? What do I do with most of my money? Does most of your money go to pay bills? Or does most of your money go to pay off debt that you used to buy things that you didn't need, didn't really want and couldn't afford so you can impress people you don't know who don't even care about you? Or does most of your money go into some kind of asset that can produce more money? Because when it does that, then and only then will you have a strong, successful, sustainable financial house. And in order to do that, it must be built on the, on, on. On the foundation of truth. Not all of the misrepresented lies that we've been taught to believe all our lives about money. I hope this video helps you if it shifts your focus like it shifts my. Shifted mine. Because when I, when I discovered this in 1999, the trajectory of my financial life went like this. And now I've got way more assets than liabilities. I've got way more assets than bills. I've got way more assets than any. Like, I don't. Money is just money.

And I don't mean that. I don't. I'm not wasteful. That's not what I'm talking about. I'm just, I don't have to worry about. I don't have to read. Go to the restaurant and read the menu from right to left. Oh, That's a good price up. Chicken again. I don't have to. I don't have to read menus like that. And I'm. My desire is for you to get to the place where you don't have to read menus like that. And like.

Somebody asked me once when I talked about the fact that I bought something, I don't know, maybe it was one. Oh. When I bought my Sprinter van, somebody said, well, what did your wife think about buying a Sprinter van? Or what does she have to say about it? I said, she didn't have anything to say about it. Not because I don't respect my wife. I respect my wife immensely, but because my wife and I are both adults and we don't ask for permission.

And I said, if my wife wants to buy a house on her way home, she can show it to me at closing or after closing. Why? Because I trust her that much and she trusts me that much. And it's just money.

How many aren't tracking, by the way?

I think you'd be shocked how many of the worries and anxieties you have are actually based on money. And I know money. Money's not the most important thing in the world. No, it's not. You are correct. It's not the most important thing in the world. But it is right up there with oxygen. What does that mean? Well, you got to have it every day to live. And when you don't have enough, you feel like you can't breathe. All right, all right, I'm done with my puns. I wanted to be a stand up comedian and that didn't work. So here I am. All right. Hope this video helps you. Hope it blesses you. Really get this etched into your cerebral cortex. Heard somebody say that one time. I think it's part of your brain. Get it etched into your cerebral cortex and let it change your life like it changed mine. And we'll look forward to seeing you in the next video. Stay blessed by the best and we'll see you soon. Bye for now.