How we use leverage for cash flow

All right. Good morning, Siegel Capital Investors. Sarah here. On my third day of how I did it. This is not a very tactical explanation, but more of a mindset and heart explanation. So today I'm talking about what I'm doing today. So on Monday, I talked about what I did. At the beginning, I focused on building my net worth in a certain time frame. Step two was I really focused on my relationship with money, my lifestyle that I had built, and really taking advantage of it. You know, after you reach your goals, what do you do? And then today I'm talking about step three. So what am I doing today, which is really different than what I did 10 years ago or four years ago. So today I am really in exploration mode. I am investing in all kinds of things that probably most of you would consider extremely risky. And I think they are if you don't know how to do due diligence and you don't know how to vet because A, there's scams, B, there's people who don't know what they're doing, it's less asset backed. So there's a lot of other things to explore besides, is this a good property in a good location, that's really easy due diligence, right? But these other things that we're investing in, it takes more time. It takes more to do your due diligence, more checkboxes on things you get to do. So, so now I'm in that space of my bases are covered, my needs are met, I feel confident and secure with the net worth that I've built for my family through real estate. And so now I'm exploring as I have additional money come in, how can I put that to work for cash flow? So on Monday, talked about my goals were around net worth. And so I was investing for net worth in hard assets. And then today I'm investing for cash flow because I have a net worth. I could continue building for net worth, but I'd like to have a little fun with my extra money. And so I am making investments that have high cash flow and that cash flow is funding different fun things. And I got this from one of our investors who said he wanted to have a fun fund for his spouse. And I thought that was really cute. So we started calling it that. So our we make certain investments that fund our toys. So for instance, even though some of it's real estate, some of it's forex trading, some of it's gold trading, some of it is, you know, business related, some of it's in the oil and Gas, space, It's kind of all over. But now I'm looking for a certain percent of my investments are for maintaining my net worth. Right. And then when we want something new, like we wanted to move to a nicer house, okay, so rent, the house we picked out, rent was double what we were paying before. So I said, okay, I need X number of more dollars of cash flow per month. So I'm going to take this money and I'm going to move it over to something that cash flows that much per month. I wanted a new car and I wanted a really nice car. So instead of paying the dollar amount for the car, you know, I looked at what investment can I make and the cash flow from that investment, I want it to pay the, the car loan. And so we've done that for our cars, boats, houses. So now we're in the mode of cash flowing luxury in our life. And it feels safe to me because if one of those investments doesn't work out, we can sell the thing that it's funding or we can stop the luxury thing that it's funding. It doesn't really, it's not like a huge deal to me. And I've kind of released the oh, this is a big deal side of it through some of the work I did that I talked about on Wednesday. So now what we're doing is we are using leverage and we're leveraging our assets. We're taking that money. So we're using. Here's an example, okay, you can leverage your stocks. So if you take out 100k loan against a piece of your stock portfolio. So your stocks are still in there, you're growing. You're not taking capital gains tax by pulling out money from your stocks are in there. You have your stock portfolio, you can borrow against it 100 and say you pay 5.5% interest only. So that's $5,500 a month. But if you turn around and invest it in something that gives you 5% a month, so you're paying 5.5% a year. And if you invest it in something that yields you 5% a month, then you have a really strong net cash flow. So we're doing this again and again and this is creating abundance of cash flow in our life. And you know, it's really fun. It's, it's. We're super playful with money now and so that's what we're doing today. Now, I don't suggest that to everyone, but I suggest that to people who have the net worth that they need and maybe they don't have the cash flow to be abundant. Think about, do you have anything that you can borrow against and invest in something that is light and fun and playful for you? All right, so we're exploring, we're more exploring. Tax strategy is a huge play in our investments today. And in the beginning, we couldn't be that creative with what we were doing. Today we can be really creative and we're flexible, we're light, we're cash flowing. Cars, boats, rents, luxury, lots of international vacations with the family. And we're using leverage against our assets, taking out debt, reinvesting it in high yield investments that really cash flow. Fun, fun things in our life. And so those are the stages we went through. Conservative wealth building. Create a platform, really think, what is your relationship with money? How do you want to expand? Maybe get some coaching with people around this. If you're having some blocks about the new person that you get to be or the new lifestyle you get to create. And then move to looking at more cash flow in order to create some more luxury in your life and really enjoy it and be playful with your investments. All right, so that's my story. Take some, use some, borrow some, ask me any questions and I'll see you in the next investment.