Ep 26 - Top Money Myths

Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group, family of companies.

Yes, yes, yes.

And welcome to another episode of our.

Podcast, Freedom through Passive Income.

That's right. And today's episode is entitled Money. Miss. Really can't say that. Money myth, money myth, you get. You see what it says?

Myths, myths. You're a goofball.

And so, so today in this episode, I'm going to ask you some questions because there are some money myths out there and, and I'd love for you to debunk them.

Okay?

All right, so number one, what is financial freedom?

This is a question I get all the time about what my opinion of financial freedom is. And, and for me, it's not money saved in the bank. It's not work, work, work, save, save, save, save, save. Especially at the rate of return you're going to get on savings. It's ridiculous. You're losing money right now in the, the inflation with inflation right now is like 6%. You are losing like 5% a year if your money isn't saved. Probably 5.9% a year if your money's in savings. So it's not saving your money in order to serve. It's not even putting money in your retirement accounts to be able to retire. That is not financial freedom. Financial freedom is investing your money to earn passive income that you not work for. It comes into your mailbox every single month whether you're working or not. And that amount of passive income, you keep on working towards a higher number. Once you get to your freedom number, you are now financially free. That's financial freedom. That's also time freedom. That's everything. Freedom. You've got passive income that's coming in. You get to do now whatever you want with whomever you want, wherever or whenever you want. You got it?

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Yeah. So again, I can start Saving when I make more money.

Oh, goodness. Yeah. So a lot of people, including me, like, I always thought I need to make more money before I can start saving. And that's just not true. Because the count. If you go online and search for a compound calculator, if you just start saving now at this, you know, at the early stage, it could be $10 a month, it could be a hundred dollars a month. I know, I don't know everybody's financial situation. It could be $5,000 a month. Whatever the case, whatever's in your head, if you take a calculator and you say, hey, if I would have just done this from $10 a month for this many years, $100 a month for this many years, you start adding it up. You know, it really makes a big, big difference. And it's the habit that you created, right? The habit of actually putting the money away to invest. So you can never, ever start too early. In fact, start as early as you can, no matter how much it is.

That's right. In order for my family and me to be happy, I have to give them the best.

You and I kind of giggle about this a lot because we're always wanting to give each other the best.

If you do it, might as well do it right.

Yeah, that's right. We spoil each other like crazy. But I will say that if we would have balanced ourselves just a little bit more and started saving earlier now, it's so easy now, Right? And it's not like we're making more money now than we have in the last, like five years. We're making about the same. We've just been wiser about what we're doing with our money and how we're spending it. So, yes, of course we give ourselves treats, but it's a more balanced thing. Don't go and spend all of your money and then, and especially Christmas time and get into huge debt to buy your wife or your husband or your kids like, like everything you think that they want in order for them to be happy, they're going to be happier in the long run. When you have set yourselves up to have that passive income streams to, to teach your kids how to change the game generationally in terms of your wealth and how you get to live life because they're going to be able to retire faster.

Yep, this is a good one. I missed the boat and I'm too old to start now.

That's hilarious. I've read articles about, you know, some of the. There's more millionaires at age 50 and up created because by the time you get to these older age brackets, you're just wiser. Just as a natural result of trying and doing a whole bunch of things and then having some regrets of not starting things sooner now really realizing the power and the value of time. So start at any point in time. And if you're 50, who cares? If you're 60, who cares? Because there's some game changer. Go online and say, how many millionaires have been created at this age? Like, it's amazing. So start. It's about starting.

That all created at 30.

Yeah, that's right. It's just about starting.

The more I make, but the more I have to pay taxes.

Nah, that's true. That's absolutely 100% true. But guess what? We just did a podcast about the tax benefits of real estate. And when you're investing in real estate and all of the ways you can end up paying 0, 0, zip, zilch in taxes. So in order to be investing in real estate, you have to make more money to be able to take advantage of all those cool decks tax benefits that the IRS legally gives us to be able to write off and take tax deductions so that we don't have to pay taxes.

Yep. Hey, pay off your mortgage early.

No, There is such thing as good debt versus bad debt. We all know that. There's people out there that say debt, all debt is bad. That's just not true. A low interest mortgage versus what you could take the extra money that you would be using to pay it off and then invest it with a higher rate of return that the, the end number at the very, at the very bottom. Like it's game changing. Like it's hundreds of thousands of dollars. So do not pay off your mortgage early. Take that extra money and invest.

I always like this one. This is like the Eeyore. I'll never be financially free.

That's just a mindset thing. Right? You know, you just have to flip. You have to surround yourself with people like us because that's all we did. Right? We surrounded ourselves with people right where we wanted to be. We said, okay, let's figure out why they're there and let's do what they're doing.

Yep. I grew up poor, so I'll always be poor. So what's the, what's it? Who cares?

Yep, that's another mindset thing, and that's something that you and I like to talk about is the generational wealth piece is you can just change one thing from what your parents taught you change one thing, that of what you then do for yourself and then pass that down that education to your kids and then they can keep on changing. And it doesn't have to be one thing. I'm just giving a baby step example that everybody can kind of grasp.

Yeah. And investing is only for rich people.

Not true. We talked about it at the very beginning. And one of the other earlier myths is it doesn't matter if it's $10, $100, just start the habit of saving. It's that habit. And if you can make it a daily habit, even better. A dollar a day does not matter. You're just gonna stick it into this little jar until you feel like, oh, I've got $30. Maybe I could, you know, invest this and see what options and surround yourself with people like us and we'll tell you where to put $30 as a test way. It's exciting. You get on apps all the time looking at, oh, look how much money I made lose money. You have to pretend that, that we always say pretend that you're burning the money. It doesn't exist anymore. It's over here. It's being invested. That's right. And you're just there to be consistent about how much that you invest. And you're just going to leave it alone and you're going to let it because historically that's going to turn into a whole lot of money if you're doing things right.

Yep. And then that leads into the next one. I'm young. I don't need to think about retirement yet.

Yeah.

Come on.

Yeah, I know. I thought that when I was young, I'm just like, I'm not going to retire until like 50 or 60. Like I'm spending all my money and I'm having fun and you know, again, it's balance.

Yep. I'll be able to retire on my savings and retirement funds.

Ah, that went to our financial freedom example. Right. You are not getting the returns that you need in order to even keep up with inflation, whether it's in your retirement account or your savings. Retirement account is a, it's a guess question mark. But it's very likely that you are keeping your money. You're not making money in your retirement account. So between fees and everything else that happen that get pulled out of the retirement funds, it's better to self direct those and put them into real estate, in our opinion. And we've got other podcast episodes that talk about that too.

And lastly, it's not worth saving if I can only save a little bit per month, spend it.

A dollar a day, just start. Right? Dollar a day, $5 a day, $100 a month, it doesn't matter. Again, we're talking to people who believe in these myths, right? Because once you start saving and you start seeing what you can do, it's just a no brainer. You're starting to do a thousand, five thousand, ten thousand. You're, you're selling stuff just so you can invest and make more money. So it's super, super powerful.

Awesome. Well, we like to try to keep these short and sweet.

Yes.

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Absolutely. And we like to end all of these episodes with invest, smart, Live, happy. Bye, everybody.

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