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 So this is where you want to create a financial system and start investing your money because your savings will never make you wealthy.
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You cannot save your way to wealth.
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You have to.
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Welcome to the School of Greatness.
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My name is Lewis Howes, a former pro athlete turned lifestyle entrepreneur.
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And each week we bring you an inspiring person or message to help you discover how to unlock your inner greatness.
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Thanks for spending some time with me today.
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Now let the class begin.
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 So someone wants to become financially free to be able to retire within 15 years.
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I want to talk about that.
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I want to talk about it at different stages of life.
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If you're in your 20s to your 30s, if you're in your 30s to your 40s, I want to talk about that.
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What would be like a step-by-step approach from first the mindset standpoint, which is your thing.
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 Thinking of the mindset, okay, I want to retire in 15 years.
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How do I have to think to then the actual actions that people need to take in order to get there?
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And what does retirement actually look like?
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That's a good question.
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So let me, I'm going to give you a quick formula and then I'm going to break it down because I have created, it's not very complex, but I created this wealth formula, which breaks it down into a very simple, almost mathematical thing where it's, you take your income, you subtract your expenses,
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 And that equals your investments plus your savings.
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Income.
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Plus income minus expenses equals your investments plus your savings.
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So if you want to become wealthy, it ultimately comes down to having more investments.
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Your savings are not there to make you wealthy.
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They're there to protect you against an emergency.
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Your investments are what make you wealthy.
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So if you want to become wealthy sooner or if you want to become a wealthier.
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You need more investments.
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You need more investments.
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How do you do that?
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Well,
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 If it's your income minus your expenses, it's basic math.
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Either increase your income, decrease your expenses, or do both.
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So that's the ultimate formula.
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So now if we talk about, let's break it down step by step on how do you actually do it.
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Six steps.
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And this is, no matter what age you are, these are the six steps that you want to follow.
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Before you get into the six steps, what is the mindset that someone needs to think about?
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Step number one is build a mindset.
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 So step number one is you need to have the right mindset.
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And so this is why I call myself the minority mindset and, you know, the brand minority mindset, because it's all about thinking differently than the majority of people.
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Because if you follow what the majority of people do in 80 to 90% of situations, you're probably doing something wrong.
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And you'll be in debt and you'll be paying off debts and loans for the rest of your life.
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The majority of people
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 are broke.
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The majority of people are living paycheck to paycheck.
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The majority of people are drowning in debt.
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The majority of people have zero to no investments.
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The majority of people are unhappy.
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The majority of people are miserable.
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And the majority of people do not like their jobs.
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This is not me exaggerating.
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These are all statistical numbers where more than 50% of people feel this way.
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And so if now you keep doing what everybody else does, you're going to end up like everybody else.
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 And so this is where now you want to think a little bit different and try to find what's right for you and try to get educated yourself.
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Because when it comes to the mindset, the first thing you have to understand is that it is possible.
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Because if you're sitting there saying it's not possible for someone like me, somebody who has my background, my parents, my whatever, I can't become successful.
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I 100% guarantee that you will not be able to become successful.
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You cannot
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 change your outcome without changing your mindset.
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Oh, that's big.
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And in the previous interview we had, we talked about mindset versus toolset, where most of the times we assume that the reason why we can't become successful is because we lack the toolset.
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When in reality, for 90% of people, it's lacking the right mindset.
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Because when you have the right mindset, you'll discover that the toolset is right around you.
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So it's first believing that you can do it.
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Because once you know and believe that you can do it,
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 that belief is going to then impact your decisions.
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Because now you can say, you know what?
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Yeah, maybe I can become successful.
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What are you going to do?
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You're going to go into YouTube, watch videos.
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How do I become successful?
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Maybe start watching videos, maybe start binging videos.
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And now you start to realize, oh, OK, I can start to do this.
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I can change this about my life.
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I need to change the way I think.
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I need to change my actions.
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I need to do more things in my day.
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I need to stop watching so much Netflix.
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I need to do this.
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Then maybe start reading books.
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 And now you start reading business books because I have read a lot of business books and there's so much wealth in a $20 business book.
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Just go on to Audible, look at some of the top business books and just start reading them and you will learn so much.
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 Now you start reading.
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Now maybe you start doing a little bit.
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Maybe you don't succeed too much, but you start taking some action and you start to learn even more because your experiences are some of the best teachers in the world, even if you make mistakes.
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I have learned from my mistakes.
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I didn't have a mentor.
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I didn't have guidance.
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I didn't have investment family members.
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I didn't have people telling me how entrepreneurship works.
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I screwed up a ton, just like you.
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We made a ton of mistakes and that's how we learned.
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And then maybe you go and take a class.
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 Now you're like, okay, I want to learn how to do this.
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I'm trying to build this business.
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I'm doing something wrong.
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I'm trying to get a better job, or I'm trying to get a raise.
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I keep doing something wrong.
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You've read books.
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Now maybe you find a class.
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You invest some money in this class, and now you have more education.
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Now you try more.
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And now you start to see over time, oh my God, 12 months ago, I had no idea.
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I didn't even believe that I can do it.
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Now that I believe that I can do it, I started watching YouTube videos.
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I started reading books.
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I started taking classes.
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I started taking action.
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 And then you keep doing it.
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Maybe you hire a coach, maybe you hire a consultant.
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I mean, the list goes on and on and on of what you can do.
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But it all first starts with the mindset, because if you tell yourself you can't, your mind shuts down and you're never going to find an opportunity.
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You're never going to look for the opportunity.
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 So that's where the mindset is the most important thing.
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And if you don't have the right mindset, this is where the first thing you want to do is start learning how do I build self-esteem?
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How do I build my confidence?
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How do I believe in myself?
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And there's, I don't have a ton of videos on this.
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I know you have a ton of videos on this.
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Watch Lewis's stuff, right?
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So start there.
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Then we go a little bit deeper now for focusing on finances.
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Mindset is number one.
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 The second thing now, once you build the right mindset, is you want to create your financial base.
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And the best way to understand this is just to think, if you wanted to build a house, what do you do first?
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Well, you've got to build a foundation.
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If you want to build a bigger house, you want to dig a deeper foundation.
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You want to build a tall building, you need an even deeper foundation.
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So you have to start by building a financial base.
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And what that means financially is first,
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 you want to save $2,000 at the very least, you want to put aside some cash for savings as fast as possible.
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Because right now, it's something like 40 to 70% of Americans don't have, well, 40% of Americans don't have $1,000 to put aside.
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And something close to 70% of Americans don't even have $400 put aside to protect them against an emergency.
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So most Americans don't have $1,000 to put aside.
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 get a $2,000 base.
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Start with two grand as fast as possible.
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And then you need to cut the financial bleeding.
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That means your high interest debts, your credit card debts, your hard money loans, your 0% APR loans, which are now charged to you 20 to 25%.
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These need to be paid off as fast as possible because these are loans that are skinning you alive financially.
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So, I mean, it seems like credit cards are one of the biggest things that hold people back.
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 Look, credit cards are a tool.
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They are a tool.
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If you're not educated with them, you could get stuck.
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If you have this tool without the education, it will burn you.
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I only spend with a credit card.
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I spend a lot of money with a credit card because I know how to use a tool.
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And now because I know how to use my credit card, what happens?
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Well, I don't spend more than I would otherwise because I use my credit card just as a medium of exchange.
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I'm going to spend this money anyways.
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Might as well use my credit card.
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My credit card gives me perks.
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It gives me cash back.
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 It gives me fraud protection.
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It gives me free insurance.
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It gives me hotel upgrades.
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It gives me all these things just because I use my credit card instead of paying with cash.
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And so now again, it's the financial education because now some people will say, oh my God, these credit card companies are scams.
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Well, the reason why they're looked at as scams is because we don't have the right education on how to use them, right?
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It's a tool without the education on how to use it.
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And this is where now you have to build that financial education and many times,
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 you're going to have to go out and do it yourself because your credit card company is not incentivized to give you the financial education because they're going to make less money.
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Right?
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It's profitable to keep people poor.
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It's profitable to keep people financially uneducated because now if you just keep spending money in your credit card because you have no idea what you're doing, now your credit card company is going to get rich.
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The average household in America has $6,200 with the credit card debt.
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So if you have credit card debt in America, you probably have an average of $6,200.
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Wow.
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 Now, let's talk about that.
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Because if... And what's the interest on that?
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Well, that's at 15% to 25%, 28%.
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And that's going up.
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So every month you're paying that.
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You're paying it every month.
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So it's not $6,000 a month.
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It's really, you know, over years, if you never fully pay it off, you're just paying more and more and more.
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 And the interest rate on your credit card isn't fixed rate, it's variable interest rate.
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So as the Federal Reserve Bank raises interest rates, the interest rate on your credit card also goes up.
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So if you are 21 years old right now, and you invested $6,200, which is the average household credit card debt right now, if you invest $6,200 right now, and you got a 20% return on your money, and you did that for the next 45, 46 years, you are going to retire with $20 million.
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 $20 million, and you never invest another penny again.
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Say it one more time.
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If you invest $6,200 today, and you never invest another penny again.
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At 21.
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At 21, and you get a 20% return on your money, you're going to retire with $20 million.
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Wow.
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Now you're going to say, Joseph Lee, where in the world am I going to get a 20% return on my money year after year?
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You're right.
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But your credit card companies do it every single day.
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Wow.
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They're charging you.
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And so when you have that sort of credit card debt,
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 That's you making your credit card company richer.
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Now, you know, whether or not you think it's a scam, look, let's move past and understand what's going on.
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That way now you can use it to your advantage.
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Because I get tens of thousands of dollars worth of cash back every year from my credit card company because I use it as a tool and I understand how to use it.
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And this is where, look, if you don't want to use a credit card, it doesn't matter.
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But just don't, if you have credit card debt, you have to pay that off because that is skinning you alive right now.
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 understand the financial education aspect.
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So that's the first thing you want to do is create your financial base.
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So you got to save some cash and you got to pay that credit card debt off.
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Cut the financial bleeding.
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Cut the financial bleeding.
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What's the strategy if you got three credit cards?
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What's the strategy to getting rid of that debt?
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 So Dave Ramsey is going to tell you to do something called the snowball method.
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The smallest first.
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The smallest first to the biggest.
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Because you're building momentum, right?
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A financial advisor may tell you the opposite.
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Do the debt avalanche, which is now pay the highest interest rate first and then go down because now you're going to pay off the most interest first, so it costs you the most money in the long term.
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 The reason why Dave Ramsey recommends the snowball method is because psychologically, when you get those small wins of paying something off, you feel like you're winning and you can pay it off faster.
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An advisor is going to look at the math and say, hey, look, these numbers are telling me that pay off the higher interest rate first, because it's going to save you the most money over the long term.
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Which one's right?
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Again, I'm not going to say which one.
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Do what's best for you.
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Because I know if I was in a situation, I'm not.
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 I like the idea of paying down the heavy interest rate first because that's how my brain works.
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I don't need the small wins like that.
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I can work for the long term.
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I think, you know, the entrepreneurial mindset where, you know, I know how my mind works, so I understand myself.
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And this is just honestly being open and honest with yourself.
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If you can't stay true with it,
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 than do the snowball.
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It does not matter.
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Screw paying it off a few months early.
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Just get it away and pay it off as fast as possible.
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Cut the financial bleeding and have a $2,000 base.
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That's step two.
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Okay.
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That's step two.
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Now, the next thing you want to do is what I call lead your money.
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 So this is where you want to create a financial system and start investing your money because your savings will never make you wealthy.
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You cannot save your way to wealth.
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You have to invest your money.
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Your savings won't make you wealthy because of what we've talked about in previous interviews, inflation.
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You're losing money in the savings.
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If inflation is higher than the interest rate you're getting at the bank, then your savings are effectively making you poorer each and every day because now your savings are losing value to inflation.
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Now, does this mean you should not save any money?
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 No.
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It means you need to save your money strategically.
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So you want to save your money for three reasons and three reasons only.
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Save your money for an emergency.
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Save your money for a big purchase.
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If you want to buy a car, you want to buy a house, you want to buy a nice watch, whatever you want to buy, you need cash in order to do that.
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And then three,
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 Save your money for an investment.
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If you're not saving your money for one of these three reasons, you're saving your money the wrong way, and it is making you poorer by saving that money.
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So now we focus on the first aspect of saving your money for an emergency.
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How much do you save?
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This is now, again, going to depend on your risk tolerance.
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 you want to save somewhere between 3 to 12 months worth of your expenses.
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And the amount of money you save is going to depend on where you are in life and how much risk you're willing to take on.
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If you're like, hey dude, I'm 25 years old, I don't have any financial responsibilities, I don't need that much savings, fine.
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Save a few months worth of savings and that's it.
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Invest more aggressively.
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If you're like, hey, I have a family, I have kids, I have a spouse, I don't want to take on all this risk, then save 6 months, 9 months, a year's worth of savings because now
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 it will give you that peace of mind that you have some extra cash put aside.
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So it's going to depend on your risk tolerance and what you want.
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 But this, in this lead your money step, this is where you want to understand that there's more to putting your money aside than just saving your money.
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You also want to be putting your money to work.
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And the best way to do this is to create a system where no matter how much money you're making, you are going to proportionately, continually invest and save based on your income.
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So what does that mean?
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Well, one of the simplest things you can do is follow something like my 75, 15, 10 plan, which means for every dollar that you earn,
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 $0.75 is the maximum that you can spend, $0.15 is the minimum that you invest, and $0.10 is the minimum that you save.
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And this never changes with your income.
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The only thing that you would ever change
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 is after you hit that savings goal for your emergency savings, you don't keep saving your money for the emergency because you built that whatever once you want, you put that towards your investments.
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And now whether you're making 40 grand, 400 grand, 4 million, 40 million, you just keep following the same thing and you're living below your means and now you're constantly putting monies aside for your investments.
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Now again, we talked about this before.
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 This investment money can either be passively invested, all of it, or you can put this money aside to be invested.
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So you can put this money into a bank account, you're looking for a rental property, you're looking for a business to buy, you're looking for a cheap stock to buy.
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This now depends on your investment goals.
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 Where do you want to be invested?
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How do you want to invest your money?
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And this is that financial education now of what do you want to do and your personal goals.
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If you don't want to be involved with your money, you don't want to be, hey, day-to-day investing or paying attention to the markets, you hate that idea, just passively invest it.
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Put it into low-cost ETFs, index funds, and don't even worry about it and let it do its thing.
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You don't change it whether the market's up or down.
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 So this is where now you're putting your money to work, leading your money, because real wealth is built through your investments, not through your savings, because you don't want to be spending all your money either, because if you're spending all your money on the Gucci, the Louis Vuitton, the Beamers, and the extra guac, well, guess what?
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Gucci's making money, Louis Vuitton's making money, Chipotle's making money, BMW's making money, but you're the one that's making all of them rich.
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Yes, if you say,
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 I want to become wealthy, but you have no savings, and yet you have all this nice stuff.
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You look rich, but the stuff that's looking rich is making you broke.
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Making you broke, yeah.
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So, you know, you're paying the price to look rich, which there's nothing wrong with that, but you just have to understand what your goals are.
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If you say, hey, I don't really care about building wealth, I just want to have my stuff, it's a free country.
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It's your choice.
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But if you say, I want to have wealth,
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 You have no investments and you're spending money on all this stuff.
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This is where you want to rethink what you're doing and understand what it is that you want and make sure that your actions are aligning with your goals and your lifestyle is aligning with what you want to do.
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I mean, you can't keep lying to yourself.
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That's why you should put your money not in buying the bag, but in buying the stock every month.
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Exactly.
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Exactly.
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Own the company.
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Own the places where you're spending your money.
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And, you know, again, there's nothing wrong with having nice stuff.
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Right.
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What I'm trying to say is just be able to afford it.
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 Yeah.
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You know what?
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Don't go into a credit card with it.
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Don't go into a credit card with it.
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If you want a nice watch, you want a nice house, you want a nice car, fine.
0
SPEAKER_00
Just make sure you can afford it first.
0
SPEAKER_00
Right.
0
SPEAKER_00
And this brings me now to the next step, which I call interest-free living.
0
SPEAKER_00
And now this is where we're going to go a little bit deeper of how do you actually spend your money?
0
SPEAKER_00
Because in the American culture,
0
SPEAKER_00
 It is very normal to be in debt.
0
SPEAKER_00
It's very normal to buy things that you can't afford.
0
SPEAKER_00
And before it was with credit cards, now it's with this new thing called buy now, pay later.
0
SPEAKER_00
I'm an entrepreneur.
0
SPEAKER_00
I'm very much involved in the financial space.
0
SPEAKER_00
I'm very much involved in the FinTech space.
0
SPEAKER_00
 Buy Now, Pay Later over the last couple of years is arguably the fastest growing sector in fintech.
0
SPEAKER_00
They're crushing it, right?
0
SPEAKER_00
They're crushing it.
0
SPEAKER_00
I have not invested any money into Buy Now, Pay Later apps because I don't believe in it.
0
SPEAKER_00
However... It's putting more people in the debt, kind of.
0
SPEAKER_00
The way that they work is you can buy something now and worry about the price later.
0
SPEAKER_00
Now, the pitch to consumers, to people is, well, you don't have to pay any interest.
0
SPEAKER_00
 Kind of like the housing market back in the day.
0
SPEAKER_00
It rhymes, you know?
0
SPEAKER_00
It rhymes.
0
SPEAKER_00
History rhymes, right?
0
SPEAKER_00
But the whole idea that they say, you don't got to pay any interest, just pay it off for, say, 12 months or six months, which doesn't seem like a bad idea.
0
SPEAKER_00
Why would I want to pay $1,000 for a laptop today if I could just pay it off in installments and not pay any interest for the next 12 months?
0
SPEAKER_00
Well, if that's the case,
0
SPEAKER_00
 Why is it such a fast-growing industry?
0
SPEAKER_00
I mean, no one's going to invest billions of dollars into something if they're not going to see any sort of financial return.
0
SPEAKER_00
The most expensive kind of money is free money.
0
SPEAKER_00
So if they're giving you money for free, how are they going to make money from it?
0
SPEAKER_00
Well, let's really dig a little bit deeper.
0
SPEAKER_00
 If you don't pay it in your 12 months, then what?
0
SPEAKER_00
So that's the first part.
0
SPEAKER_00
If you don't pay it off, now you get slapped with a very, very hefty fine, a very, very hefty fee, where now you're paying a massive interest rate, essentially like a credit card.
0
SPEAKER_00
You're just acting like a credit card.
0
SPEAKER_00
It's the same concept, where you get a little bit of a grace period.
0
SPEAKER_00
But the second aspect is, if you want to buy a laptop for $1,000 and you need $1,000 to buy it, well, you've got to have $1,000.
0
SPEAKER_00
 But if you don't have to pay for it now, you can buy a laptop, you still have $1,000 in your bank account, maybe $900.
0
SPEAKER_00
And now what happens?
0
SPEAKER_00
I can go buy more stuff for $100 a month.
0
SPEAKER_00
That's $1,000.
0
SPEAKER_00
And you keep buying more and more and more.
0
SPEAKER_00
So it allows people to spend even more.
0
SPEAKER_00
 to lock and all the stuff.
0
SPEAKER_00
So you have a whole bunch of stuff and all your money is going out to pay for the stuff that you bought yesterday.
0
SPEAKER_00
A year ago now.
0
SPEAKER_00
A year ago.
0
SPEAKER_00
And then if you can't pay it off in time, because that's ultimately, you know, their goal.
0
SPEAKER_00
If you can't pay it off in time, now you get slapped with all that interest, all these fees, and now you're the one that's got to pay it off.
0
SPEAKER_00
So this is where you have to understand the spending aspect of how do you spend your money?
0
SPEAKER_00
Because again, these things are tools.
0
SPEAKER_01
 I wonder how many people, you know, this is going into our previous interview, I wonder how many people signed up for more credit cards since 2020 and also signed up for more, bought more things with this Buy Now Pay Later.
0
SPEAKER_01
I wonder if there's data out there on this.
0
SPEAKER_00
I don't know.
0
SPEAKER_01
Which will give us a more indication, hey, 12 to 24 months from now, man, people need to make double the money.
0
SPEAKER_01
 Or they're going to be going into a lot more debt.
0
SPEAKER_00
So in terms of the number of credit cards, I don't have an answer off the top of my head.
0
SPEAKER_00
But what I do know is the amount of money spent on the credit cards.
0
SPEAKER_00
Because in 2020, when the pandemic hit, we saw the fastest pay down of credit card debt ever.
0
SPEAKER_00
Really?
0
SPEAKER_00
Which was great, because now you're sitting at home.
0
SPEAKER_00
 you have very little expenses.
0
SPEAKER_00
You don't gotta pay your mortgage, mortgages and forbearance.
0
SPEAKER_00
A lot of people are not paying their rent.
0
SPEAKER_00
You don't gotta pay your student loans.
0
SPEAKER_00
You're not going out to eat.
0
SPEAKER_00
You're not going out, right?
0
SPEAKER_00
So you have very little expenses.
0
SPEAKER_00
And then many people are now getting unemployment checks.
0
SPEAKER_00
You're getting stimulus checks.
0
SPEAKER_00
So you have more money coming in.
0
SPEAKER_00
And many people actually became wealthier.
0
SPEAKER_00
 because of this situation.
0
SPEAKER_00
So it's extra cash.
0
SPEAKER_00
Some people spent it.
0
SPEAKER_00
Some people invested it.
0
SPEAKER_00
Some people paid down their debt.
0
SPEAKER_00
And we saw the biggest credit card debt paid down in the history of time in 2020, which was... It's all from free money, though.
0
SPEAKER_00
Well, you know, at the end of the day, at least you're using it for the right purpose.
0
SPEAKER_00
So that was great.
0
SPEAKER_00
It's great.
0
SPEAKER_00
People pay down their debt.
0
SPEAKER_00
 Well, then what happened towards the end of 2021 into 2022 was the economy opened back up, people started spending, you wanted to go out and, you know, this pent up demand, you want to start traveling, you want to eat out again, you want to have fun again, fine.
0
SPEAKER_00
But then we were also hit with inflation.
0
SPEAKER_00
 Everything is so expensive.
0
SPEAKER_00
Now you've been waiting to travel, you've been waiting to eat out, you've been waiting to do all this stuff.
0
SPEAKER_00
It's so much more expensive.
0
SPEAKER_00
So now what do you do?
0
SPEAKER_00
Well, I don't got any credit card debt.
0
SPEAKER_00
I'm gonna go put it on my credit card.
0
SPEAKER_00
And so over the last number of months, we have seen the fastest growth of credit card debt in the history of time.
0
SPEAKER_00
 And this is the situation where we paid it off, and now we're going right back into it.
0
SPEAKER_00
Maybe because we feel like, hey, I got room to spend.
0
SPEAKER_00
And second, because everything is so expensive.
0
SPEAKER_00
I can't afford groceries.
0
SPEAKER_00
I can't afford gas.
0
SPEAKER_00
And so it's this whole vicious cycle.
0
SPEAKER_00
It all goes back to point number one, mindset.
0
SPEAKER_00
The mindset, the education.
0
SPEAKER_00
It is so, so, so crucial.
0
SPEAKER_00
And this is where now, in this step, you can make that decision.
0
SPEAKER_00
First, you have to understand how to spend your money.
0
SPEAKER_00
 And then you can understand now, what do you do with the rest?
0
SPEAKER_00
Do you want to pay down your mortgage?
0
SPEAKER_00
Do you want to pay off something like that?
0
SPEAKER_00
Or do you want to invest your money?
0
SPEAKER_00
And this is really an individualized question because the simple math is if your mortgage is costing you, say, 5% a year, and you can get an 8% return on your investment, you can invest your money
0
SPEAKER_00
 get a better return, pay off your mortgage, and have some money in your pocket.
0
SPEAKER_00
It's a no-brainer.
0
SPEAKER_00
So if you can invest your money, get a better return, why would you not do that?
0
SPEAKER_00
Well, because investing comes with risk, versus paying off your mortgage does not.
0
SPEAKER_00
Because when you pay off your mortgage, you get a guaranteed 5% return on your money, because now if you pay it off a year early, you get a guaranteed 5% return.
0
SPEAKER_00
 versus when you invest your money, it comes with risk.
0
SPEAKER_00
Might go up, might go down.
0
SPEAKER_00
Might go up, might go down.
0
SPEAKER_00
And so now the question, again, is what type of life do you want to live?
0
SPEAKER_00
Do you want to say, you know what?
0
SPEAKER_00
I just don't want to have to worry about my mortgage payment.
0
SPEAKER_00
I just want to be financially free, never have to stress about money, and just be okay.
0
SPEAKER_00
Then pay down the mortgage.
0
SPEAKER_00
 because now once you pay down the mortgage, your biggest expense is gone, you own your house free and clear, you still gotta pay your property taxes, but at least now the biggest expense is gone and you're gonna breathe so much easier when you don't have a mortgage to pay.
0
SPEAKER_00
 But if you say, you know what Jaspreet, I want to live big.
0
SPEAKER_00
I want to have the nice stuff.
0
SPEAKER_00
I want to have the big things.
0
SPEAKER_00
I want to be flashy.
0
SPEAKER_00
Nothing wrong with that.
0
SPEAKER_00
I want to have it all.
0
SPEAKER_00
OK, that's fine.
0
SPEAKER_00
Then you don't want to be trying to get a 5% return.
0
SPEAKER_00
You want to invest this money in the markets.
0
SPEAKER_00
You want to invest it in your business.
0
SPEAKER_00
You want to invest it in your education.
0
SPEAKER_00
You want to invest it in yourself, because now you can get a much better return.
0
SPEAKER_00
Is it riskier?
0
SPEAKER_00
Absolutely.
0
SPEAKER_00
 But your mindset is somewhere else, right?
0
SPEAKER_00
You want to get a different type of return.
0
SPEAKER_00
And this is why you're investing into the things that can give you a better return, because that's what you want.
0
SPEAKER_00
But you just have to understand that it comes with risk.
0
SPEAKER_00
And if you're not comfortable with that, then do the first.
0
SPEAKER_00
So this is where you just have to understand you and understand what type of life you want to live.
0
SPEAKER_00
But the key here is you don't want to put yourself back into the situation that got you here in the first place, where if you have the credit card debt, you got to know how to spend your money, that we don't end up there again.
0
SPEAKER_00
 One of the simplest things to do is now to understand the difference between being able to buy something and being able to afford something.
0
SPEAKER_00
And one of the things that I like to say is just follow my rule of five.
0
SPEAKER_00
If you can't buy five of them, you can't afford one of them.
0
SPEAKER_00
The houses are expensive, though.
0
SPEAKER_00
Well, houses are an exception.
0
SPEAKER_00
It's different.
0
SPEAKER_00
So we're talking about most liabilities.
0
SPEAKER_00
You want to buy a Gucci belt.
0
SPEAKER_00
You want to buy a $200 Gucci belt.
0
SPEAKER_00
 Fine.
0
SPEAKER_00
Can't buy five, don't buy one.
0
SPEAKER_00
Can't buy five, don't buy one.
0
SPEAKER_00
Gotcha.
0
SPEAKER_01
The house is different.
0
SPEAKER_00
The house is different.
0
SPEAKER_00
The house is an exception.
0
SPEAKER_00
No one's going to buy a house unless you like it.
0
SPEAKER_00
The house is the one exception here.
0
SPEAKER_00
When it comes to your liabilities, that's the only liability that would say it's okay to finance.
0
SPEAKER_00
Because everything else, your Gucci belts, your clothes, your vacations, you should not be financing that because it's not putting any money in your pocket.
0
SPEAKER_00
And that's a clear liability.
0
SPEAKER_00
You don't want to be financing that stuff.
0
SPEAKER_00
Right, right, right.
0
SPEAKER_00
 So that's where now you want to understand how to spend your money and then where to put your money to work.
0
SPEAKER_01
Interest-free living.
0
SPEAKER_00
Yes.
0
SPEAKER_00
And then this brings me now to the next part, which is what I call multiplier income.
0
SPEAKER_00
 We're going back to the wealth formula where it's income minus expenses equal your investments plus your savings.
0
SPEAKER_00
We talked about how to save your money.
0
SPEAKER_00
We talked about how to invest your money.
0
SPEAKER_00
We talked about how to manage your expenses.
0
SPEAKER_00
But now let's talk about the income because if now you understand how to live below your means, you understand how to put your money to work,
0
SPEAKER_00
 if you want to put fuel on the fire you just got to earn more money now if you earn a hundred thousand dollars you earn a million dollars you earn whatever you earn more money now you know how to put this money through your system through your funnel whether 75 15 10 or whatever else you know how to take this extra money put it to work that way you have more money to invest more money to save more money to live your life but the key is you don't want to 100% increase your lifestyle to match your income you want to increase
0
SPEAKER_00
 your income with your investments.
0
SPEAKER_00
And keep expenses the same.
0
SPEAKER_00
Ideally.
0
SPEAKER_00
Now you can, you know, marginally increase your expenses, but the key is you want to be increasing your income and your investments way more.
0
SPEAKER_00
Yes.
0
SPEAKER_00
So the question is, how do you do that?
0
SPEAKER_00
Well, this is where, again, understand you.
0
SPEAKER_00
If you are an employee, you don't want to start a business.
0
SPEAKER_00
You don't want to start a side hustle.
0
SPEAKER_00
Fine.
0
SPEAKER_00
Nothing wrong with that.
0
SPEAKER_00
There's nothing wrong with being an employee.
0
SPEAKER_00
You just have to understand you.
0
SPEAKER_00
But that means now, how can you earn more money?
0
SPEAKER_00
 If you like your job, look for ways to get a raise, to get a promotion.
0
SPEAKER_00
See how you can get a bonus.
0
SPEAKER_00
Just be open with your boss.
0
SPEAKER_00
Say, hey, look, I want to be able to contribute more.
0
SPEAKER_00
I want to earn more money.
0
SPEAKER_00
What can I do?
0
SPEAKER_00
Most people are going to be very open and honest.
0
SPEAKER_00
Say, hey, I would like you to tag on this, this, and this.
0
SPEAKER_00
Do this, and then we will help raise your salary.
0
SPEAKER_00
Maybe if you don't like your job, you're going to get a certificate.
0
SPEAKER_00
You're going to do something else.
0
SPEAKER_00
 You need to figure out now how you can increase your income, maybe get a second job.
0
SPEAKER_01
What value can you bring to the business to bring in more money for the business or save more time or create some system so that the business can say, okay, cool, let's give you more opportunities for growth.
0
SPEAKER_00
Exactly.
0
SPEAKER_00
I mean, if you can bring in an extra $10,000 a year to the business of profit,
0
SPEAKER_00
 They're not going to have a problem paying you $5,000 or whatever it might be, right?
0
SPEAKER_00
And this is where you just want to be open because every business is different.
0
SPEAKER_00
Maybe take on a second job and, you know, it's just figuring out how can you earn more money there.
0
SPEAKER_00
Now, if you say, well, I want to do something outside of my job.
0
SPEAKER_00
Fine.
0
SPEAKER_00
Well, the first thing you could do is start a side hustle.
0
SPEAKER_00
So much more accessible now than ever.