DO THIS To Never Worry About Money AGAIN

Most of what we're told about making money is entirely wrong. Make sure you're not making the same mistakes I did. Stay tuned.

Most people don't fully understand that what they learned about money, they actually didn't learn. It kind of happened by osmosis. For example, as I was growing up, we didn't really have a lot of financial stuff. We didn't have a lot of success. In fact, we actually struggled to keep the lights on on a regular basis. We barely got by in some cases. I'm not saying that some days weren't okay, and some days we didn't have what we needed. But more times than not, we had less than we needed to actually live on. And as a result, my parents and my pseudo parents chased a lot of things they shouldn't have chased because they were doing the wrong things. But why? You see, most people don't fully understand that what they know about money comes directly from their parental role models who then illustrated how to handle money. That's why people who are stuck in a poverty mindset tend to stay there. And people who are stuck in a growth mindset tend to keep growing. It's because certain financial principles actually always build certain financial results over and over and over and over again. Now, I'm not saying that everyone handles money the exact same way. What I'm saying is that which influenced how you handled money dictates well how you handle money. So if you grew up in an environment where your parents were constantly spending and never having enough, then there's a good chance you probably have the same behaviors. If you grew up in an environment where your parents are constantly saving and investing, then there's a good chance you're probably following the same behaviors. The trick is understanding the behavior system that you need and you want. Fortunately for me, I had several mentors that came alongside of me early on that began to teach me about money specifically and how to make it work for me rather than me work for it. That's the trick. You can either do the same thing you've always done and have the amount of money and the savings or whatever you've always had, or you can apply the things I'm about to share with you and never actually worry about money again. Because here's the deal. As you go through this, when you do this stuff over and over and over and over again, you're going to build what's called a surplus. You are going to have enough savings to weather bad storms. You're going to have enough spending ability to actually buy the things that you want, when you want them, but only if you do it this way. If you don't do it this way, there's a great chance you're going to end up basically broke. And let's face it, nobody wants to be broke. Above all, I need you to remember one thing. You cannot dig yourself out of a financial hole. Instead, you have to climb out. If I gave you a shovel and you're just digging and digging and digging, you're going deeper into debt, you're borrowing more and more money, you're leveraging your friendships and relationships all the time. Eventually those friends are going to turn off to you and in other words, they're not going to be around you very much, right? And you're going going to have all the expenses that come around with all the debt that you incurred. So you cannot bar your way into financial success, but you can climb out. The first thing you need to do to do that is you need to slow down. You've got to spend time slowing down to understand what priorities you need to make to get the best financial return you can possibly get. Now, as you continually slow down to gain the right perspective and to set the right priorities, one of the things that's going to pop up immediately takes us our next one, which is this. Avoid comparison at all cost. The longer you spend trying to impress people, the longer it's going to take you to actually build a firm foundation. So if you're buying crap that you don't need simply to impress people who may or may not like you to begin with, you are doing yourself a disservice because you are not taking the time needed to actually determine what it is you and actually need. Instead, you're trying to impress people for no absolute reason. And as a result, you end up broke. Tell me I'm wrong. You're buying stuff all the time to impress other people. And how much money you got in your account right now, how much money you got in your wallet right now? It's the quickest way to remain broke is to actually compare yourself to people on a regular basis. People who are great with money, who end up developing wealth, end up doing so by developing it based on priorities and, and based on needs that then translate into savings, that then translates into investment, that then translates into buying all the crap you want. Now, as you take the time to avoid comparisons, the next thing you need to do is to leverage temporary sacrifices. For example, I recently had my son and his girlfriend actually at our new house that I'm building with My wife. It's a nice place. We've saved, we've done the right things, we've invested, we've waited, we've taken steps back so we could take giant strides forward. We've got, we've done all of that in order to make sure that we are putting ourselves in a position to actually build the home of our dreams. Well, the easiest thing for me to do was to actually use that as a teachable moment. So what I did was I took the time with a marker and a piece of sheetrock and I took the time to actually tell them how to actually have a house like the one that my wife and I are building right now within 10 years of their life. Why? Because there is a process for it. It's a strategy. It requires building a certain amount of equity, flipping a certain amount of equity and doing that 10 times with two year increments in between. That allows you to actually build up enough equity to basically be able to pay for a house in cash.

Not financing, not debt. Now you're not going to get there overnight, but you got to start the process. In order to start the process, the first thing you have to do Is save up 20 or 30% of the down payment for, for the first house to start the process. Which means you have to have a sacrifice, which means you may not go out on date nights for a while. It means you may have to not eat out all the time. It means you may not be able to go buy the new video game or the new pair of boots or the new car or any of that stuff. The reality is, is the best way to get where you're trying to go is to actually leverage temporary sacrifices. Clearly dictate a one to three year window where you are going to go at your life like everything depends on it and, and build a solid footing that then creates a foundation for you to actually be successful. Leverage temporary sacrifices. Stop looking and wanting at all the stuff out there on the media sources that just makes you want more and more and more and more. Instead, be content with where you are, save up for what you need and create a financial plan to get yourself started with a strategy and not reaction. In order to do that, you're going to need the next thing, which is this. Spend less than you make. No matter what your income level is. In order for you to actually be able to get to the place where you can save up enough money to start off a real estate investment portfolio or strategy like that, you're going to have to save money. If you're spending your money all the time, then inevitably what happens is you don't have money in savings. And then right when you need the money most to invest properly to capitalize on a gain, you don't have the money. One of the reasons my businesses have made it through Covid the way they have is because all of my businesses historically are spending less than we make. Why? Because I need to have retained earnings so when I have a property I can buy and pay cash for when it goes on sale because somebody else got scared and wanted to sell it, I've got the cash. When I want to buy a new vehicle or something like that because somebody else got scared and they had to sell it, I've got the cash. That's the power of spending less than you make. Okay? The next thing you've got to do is you have to figure out ways to actually increase your income. If you use the same sacrifice principle I just mentioned, it means you may have to work two or three jobs, just as I did for two or three years to get yourself in a position where you have that cash, that capital to overall invest in your future. If you don't take the time to do that, the next thing that's going to happen is you are not going to be able to save money because your income that you currently have coming in at your normal job may not be enough to actually get yourself out of debt. Get yourself in saving mode, get yourself in investing mode. So what you can do in the meantime is you can get a part time gig and rather being like bummed and like I hate myself for it and how can I rather than do it, see it as part of the strategical play, see it as the way in which you're going to move forward. Work like your life depends on it for two or three years. The best time to do it is when you're young, not when you're 60. Seriously, best earning income ages 18 to 35. Bust it, bust it, bust it hard. Use that time to get the right amount of money in the savings in the investment portfolio to help you move forward. All right, now this one I'm going to roll through pretty quickly. So make sure you pause the video as needed and take care of it that way. Whatever you want to do here. But the next up on the list is this. You have to avoid a scarcity mindset and living by what I refer to as the ratios. Ratios do a few things. First of all, they protect you from overspending. Ratios also make sure that you stay on track. It's like a measurable milestone. And ratios also give you the benefit of knowing where your money is going on a regular basis. For example, in the current environment, if you're currently employed, you got a little debt, you got some things going on. Here are some ratios that I currently would recommend you stick to for a little while to make sure you're getting a foundation that really set up for yourself. First of all, 20% on housing. You could spend 20% of your income on housing, 5% on utilities, 15% on food and or groceries, 15% of transportation and insurance, which is directly correlated to a car payment or insurance and all that kind of stuff. As we go through this list, do me a favor, go ahead and like and subscribe to the channel and make sure you hit the bell as well so you never miss out on a quality video. Now as we keep running on with our ratios, the next one is going to be this. 15% of your income eliminating debt. Make sure you're doing that because every dollar that you're currently spending in a monthly payment is another dollar that could either be saved and or invested. Which is why you want to eliminate your debt. Most people don't understand that you can be making $100,000 a year and have 50% of that be in debt. And it's like making $30,000 a year. Meanwhile, if you're making $45,000 a year and you have zero debt, it's like making $120,000 a year. Why? Because you have free cash. And cash is king, baby. That's how you actually get from one place to the other. All right, next up, 10% on savings. 10% on giving. Yes, yes, yes, yes. Well, I don't have enough money. Why would I give my money away? I don't have any money to give. 10% giving. And if you don't have any money, you're zero. You're living in your car like I used to be. Then you're going to give 10% of your time. Time, talent and resources. All three of those are different ways to give. But if you're not giving at least 10% of your overall net income away, your net take home pay away, then you are setting yourself up against the universe and God, so to speak. You're not putting yourself in a position to be worthy of character driven spending and investment later on. Alright, the final one, your favorite one, 10% on spending. I know you just said 10%. Dude, really? I can only spend 10% of my money? Yeah. For three to five years. Sacrifice. The reason I have the ability to buy whatever I want whenever I want now is because I have money in savings. And I've been doing exactly what I'm telling you to do on a regular basis right now, consistently over time for almost 20 plus years. 20 plus years of doing exactly what I just shared with you to get me to a position where I have more income coming in than more expenses going out. And as a result I'm able to spend more. Does that make sense? This will help you actually build a financial future. So now why I know you want to spend more money. I'm asking you to do what I mentioned earlier. Pay a short term sacrifice so you can have a long term gain. It's that simple. Don't waste time and energy spending more than you have, more than you make and not do these other things very well. And getting yourself out of these ratios that protect you and help you get to your financial future. Come on, spend the time, spend the investment, spend the resources in a wise way and help yourself get there. Now part of setting yourself up for a future is taking to the next step, which is this one. Set up automatic drafts and investments. What I mean by that is the quickest way to make sure you don't overspend is to actually have it pulled directly out of your paycheck and put into a savings account that can earn you interest. There's a reason why banks buildings are bigger than your house, right? It's because of the power of compound interest. Well, the only way you leverage compound interest for yourself is, is to make sure that you actually set a portion aside on a regular basis to allow it to build up. Now it's been a long time since I've looked at the overall metrics on this, but it's my understanding if you start saving 200 bucks and you put it away in a 401k or a Roth or something of that nature, something that's an interest bearing account that puts compound to interest to work for you. Within 20 years you have what the equivalent of a million dollars could be.

Short term sacrifices, long term gain. Short term sacrifices, long term gain. Yes, you won't have $200 to go out with your friends. Yes, you won't have $200 to go buy the next video game. Yes, you won't have $200 to go buy the pair of boots or the shirt or whatever you want so that $200 can make a big difference in your financial future. So you can go spend it on a name brand thing and then not have it to actually invest or you can set it aside and by the time you're 30, 31, 28 years old, or really, if you're that age, if you're 30 plus now, you can start now and still having a million dollars by the time you're 50. At the end of the day, you simply have to do one thing. You've got to make your money work for you, rather than you working for it. And the only way you get there is by doing the same things that I talked about. Now, if you want more information on how to make sure you have a great financial future and your life is amazing, check out this video right here. If you decide to believe that you are a failure and you tell yourself you're a failure on a regular basis, guess what? You are going to experience a consistent level of failure because you are focused on it and you're looking for it.