WEBVTT

1
00:00:00.000 --> 00:00:05.060
And so the first thing I asked was do these people who are giving you this vice make more money than you?

2
00:00:05.060 --> 00:00:10.240
And he said no, now it's like rule number one do not listen to people poorer than you about vice on money

3
00:00:11.440 --> 00:00:15.160
Welcome to the Jim Secrets podcast where you talk about how to get more customers how to make more

4
00:00:15.160 --> 00:00:20.000
Procustomer and how to keep them longer and the many failures and lessons that we have learned along the way

5
00:00:20.000 --> 00:00:22.000
I hope you enjoy and subscribe

6
00:00:22.560 --> 00:00:26.840
What's going on everyone? Alex was here. See you have Jim much prestige labs and

7
00:00:27.400 --> 00:00:31.960
Alan and a number of other portfolio companies that we have we did 120 plus million last four years

8
00:00:31.960 --> 00:00:33.960
What I want to do is show you some of the

9
00:00:33.960 --> 00:00:36.120
Some of the lessons that we have learned along the way. So

10
00:00:36.840 --> 00:00:40.040
volatility and risk so I had a conversation with

11
00:00:40.600 --> 00:00:44.440
Somebody on my team and it was such a good conversation. I wish I had recorded it

12
00:00:44.600 --> 00:00:46.600
And so this is going to be my attempt

13
00:00:47.160 --> 00:00:48.680
To break this down for you

14
00:00:48.680 --> 00:00:52.200
So this is if you are an entrepreneur and you have a sales team

15
00:00:52.760 --> 00:00:57.000
You can send this to your sales team if you are kind of still in the selling mode. This will apply to you

16
00:00:57.560 --> 00:01:01.000
And if you're an employee and you're looking at making more money and you want to become wealthy

17
00:01:01.320 --> 00:01:03.720
This will also apply to you too. All right

18
00:01:03.720 --> 00:01:07.560
So the employee question came to me and they requested like a 15 minute time which

19
00:01:08.200 --> 00:01:10.360
I knew it was something important because that doesn't happen very often

20
00:01:10.360 --> 00:01:12.440
And so I was I was kind of looking forward. I was like hey, what's up man?

21
00:01:13.000 --> 00:01:17.000
And what was interesting in the first you know four to five minutes of the call you know

22
00:01:17.480 --> 00:01:21.320
The person was just like I just really want to pick your brain on like the direction of my life

23
00:01:21.320 --> 00:01:23.480
And I was like well, that's a really big amorphous topic like

24
00:01:24.040 --> 00:01:26.760
What problem are we solving right which is always if you ever talk to me

25
00:01:26.760 --> 00:01:29.320
It's usually like what problem are we solving right because then we can start tackling it

26
00:01:29.880 --> 00:01:33.880
Um, and I don't think they knew what the problem that they were solving was because what it was is in reality

27
00:01:34.120 --> 00:01:38.440
They had family members who were saying hey you you shouldn't you shouldn't be in this job

28
00:01:38.520 --> 00:01:43.640
You need something that's more secure. All right, and so as I dug deeper into this conversation

29
00:01:43.720 --> 00:01:47.640
There were so many nuggets that came out of it that I think I've wrote them all down on on a list

30
00:01:47.640 --> 00:01:51.080
Then I'm going to try and hit as many by can all right, and so the first thing was

31
00:01:51.960 --> 00:01:55.240
This person in particular is on our sales team. We've a lot of you know with 20 plus sales people

32
00:01:55.880 --> 00:01:58.360
um, and they they uh

33
00:01:59.000 --> 00:02:01.480
Their family said you should get out of sales

34
00:02:02.120 --> 00:02:07.880
You need something that is less risky. All right, and so the first thing I asked was

35
00:02:08.680 --> 00:02:11.880
Do these people who are giving you this vice make more money than you and you said no

36
00:02:12.040 --> 00:02:16.280
Now it's like rule number one do not listen to people poorer than you about advice on money

37
00:02:17.080 --> 00:02:20.600
So for everyone who has family or friends or parents

38
00:02:21.240 --> 00:02:25.480
Who make less money than you or make the same amount of money than you at a at an eight at an older age

39
00:02:26.280 --> 00:02:28.920
Don't listen to them. All right, listen to people who make far far far more money

40
00:02:29.160 --> 00:02:32.360
I don't even think you should listen to millionaires. Listen to billionaires. I think it's great advice from Grand Cardone

41
00:02:32.920 --> 00:02:34.280
Listen to billionaires

42
00:02:34.440 --> 00:02:36.440
So number one number two

43
00:02:37.960 --> 00:02:42.600
They had a must understanding of volatility and risk. All right. This is a classic poor person thing

44
00:02:43.240 --> 00:02:45.080
All right, so I'm going to break this down for you

45
00:02:45.400 --> 00:02:52.280
With an example, let's say I own an insurance company, okay?

46
00:02:53.080 --> 00:02:58.360
And I know statistically that every nine years there's going to be a super catastrophe

47
00:02:58.440 --> 00:03:01.960
There's going to be a hurricane which Katrina, a hurricane Maria something that's going to destroy everything

48
00:03:01.960 --> 00:03:03.960
And I'm going to lose a butt load, okay

49
00:03:04.760 --> 00:03:06.280
now

50
00:03:06.280 --> 00:03:08.840
That means that one out of nine years I'm going to get destroyed

51
00:03:09.320 --> 00:03:12.840
But the other eight years I'm probably going to make a lot of money, right? Right

52
00:03:13.640 --> 00:03:16.920
So the question is is my insurance business risky?

53
00:03:18.120 --> 00:03:22.600
The answer is no and I'm going to make the assumptions that I have a sound business model and I've margins and all that stuff

54
00:03:23.080 --> 00:03:26.200
But the reality is that my insurance business is not risky

55
00:03:27.240 --> 00:03:30.920
It is volatile those are not the same things all right

56
00:03:31.560 --> 00:03:37.240
And so if you if you flatten out the curve over the nine years and look at the growth that's going to occur in my business

57
00:03:37.560 --> 00:03:38.920
Based on those metrics

58
00:03:38.920 --> 00:03:45.880
I will be far better off than something that might be less volatile, less up and down, but not grow as quickly, all right

59
00:03:46.440 --> 00:03:53.640
Sales is an example of a highly volatile profession that still is low risk and let me explain why

60
00:03:54.600 --> 00:04:00.360
Who do you think is the most secure in the company somebody who generates revenue or someone who costs overhead

61
00:04:01.400 --> 00:04:05.720
Someone who generates revenue so salespeople are by definition people who generate revenue

62
00:04:05.960 --> 00:04:07.960
Which means they are the lowest risk

63
00:04:08.840 --> 00:04:13.160
In a company now for them they may have more volatility from paycheck to paycheck

64
00:04:13.240 --> 00:04:18.440
But in general people in sales generate make more money than people who are not in sales

65
00:04:18.520 --> 00:04:22.840
All right, and if you're good at sales even more so which this individual is right

66
00:04:23.640 --> 00:04:26.840
And so with the concept of volatility versus risk

67
00:04:27.480 --> 00:04:28.360
I said

68
00:04:28.360 --> 00:04:33.640
What you should do if you want to decrease the volatility in your in your life and get the upside benefit of your position

69
00:04:33.960 --> 00:04:37.240
Is you need to decrease your expenses to your salary?

70
00:04:37.640 --> 00:04:43.080
All right, so his salary and I said now your salary is what you need to assume your is all you're going to make now

71
00:04:43.080 --> 00:04:45.080
I'm not saying live on your salary. I'm saying

72
00:04:45.640 --> 00:04:52.920
You should be saving off of your salary now think about this. Let's say this individual is living as it has a salary of let's say $40,000 a year

73
00:04:53.080 --> 00:04:54.600
all right

74
00:04:54.600 --> 00:04:58.520
Now if I can get them to live on 25k right a year

75
00:04:59.400 --> 00:05:02.680
Then that delta can be invested in the S&P 500

76
00:05:03.640 --> 00:05:06.120
And within 20 years they're top 1%

77
00:05:06.920 --> 00:05:12.840
Crazy I know and if you split where you live with other people and you really try and live down you can do that faster

78
00:05:13.080 --> 00:05:15.480
Right, but the problem is that this isn't all the person's gonna make

79
00:05:15.880 --> 00:05:19.640
But you should plan like it is because then what happens is all of this

80
00:05:20.760 --> 00:05:27.640
Becomes gravy and even if you have a bad month which there's no salesperson in our company that would not that would not make any sales

81
00:05:27.640 --> 00:05:29.320
It doesn't it doesn't even make sense right

82
00:05:29.400 --> 00:05:35.720
But even if you had a bad month they still this person would still feel like they're making progress towards their wealth freedom and independence goals

83
00:05:36.040 --> 00:05:42.120
All right, but the reality is that they would probably make you know another 100k per year on top of that

84
00:05:42.280 --> 00:05:47.160
But now they've set up their lifestyle such that their expense. They come ratio is so favorable

85
00:05:48.200 --> 00:05:53.960
That that they can save so much of their money and they get to their goal faster which is the next point

86
00:05:54.760 --> 00:05:56.520
Which is

87
00:05:56.520 --> 00:06:02.680
Wealth and I've said this before and I will say it again is not a number and this was one of the things that I did I had to tease out in this conversation

88
00:06:03.160 --> 00:06:09.480
Wealth is a ratio. It's a ratio between how much you spend versus how much you make it's inflow versus outflow

89
00:06:09.880 --> 00:06:14.280
Not I need to make X to be free now if you want to have a crazy lifestyle

90
00:06:14.360 --> 00:06:20.840
I have another video about about what living like the ultra wealthy is but the reality is it's a not that fun

91
00:06:21.080 --> 00:06:25.800
Not definitely not fulfilling and I'll tell you what is way more fulfilling having the freedom and the peace of mind

92
00:06:25.800 --> 00:06:28.760
Which is actually what people want knowing that you're going to be set up for life

93
00:06:29.000 --> 00:06:32.600
And the way to do that is to have a strong income to expense ratio

94
00:06:32.920 --> 00:06:37.000
And so this individual if he's making a hundred and forty thousand and he lives on 25

95
00:06:37.560 --> 00:06:43.080
He's making nine times more or whatever the math is there whatever six times six times more you make it six times more

96
00:06:43.800 --> 00:06:48.680
Then he's spending that's a great income to expense ratio his wealth is going to build very very quickly

97
00:06:49.080 --> 00:06:56.680
Right and with that that extra money will more than cover his 25,000 was a year right like the one forty that he or sorry the one

98
00:06:56.920 --> 00:07:01.320
115 that he's saving in this example right every year in pure cash

99
00:07:01.640 --> 00:07:07.400
He's already saving four and a half years of income every year now let alone the fact that if he's just gaining at 10%

100
00:07:07.880 --> 00:07:14.040
Right S&P's nine, but like just for math seg let's just say ten that he's he's going to be generating self

101
00:07:14.920 --> 00:07:21.160
Compounding growth with which means that in two years two years will be at two hundred and thirty right

102
00:07:21.640 --> 00:07:25.160
He would technically be able to retire on his current income

103
00:07:25.720 --> 00:07:29.640
Think about that right now if you want to if you want to spend more then fine

104
00:07:29.880 --> 00:07:33.880
But literally there's a 24 month way of of saving your way to wealth right now

105
00:07:33.960 --> 00:07:39.080
Would I want to retire in two hundred and thirty thousand hours? No, but if you work for a decade by the end of that period of time

106
00:07:39.080 --> 00:07:42.040
You'd have to you know two point something right and at that point

107
00:07:43.000 --> 00:07:49.160
Then he can he can he can totally just retire and not only that if he's keeps his expense ratio at 25,000

108
00:07:49.160 --> 00:07:54.600
Maybe even bumps himself to 40 or 50,000 or which for most people is is a really comfortable living

109
00:07:54.600 --> 00:07:57.960
You know as long as you're not doing anything crazy right and if you do it that way

110
00:07:58.840 --> 00:08:05.320
Life will be better now the next point that that that came up was he's like okay. Well, I've got I've got some debt

111
00:08:06.280 --> 00:08:10.120
So what should I do? He's like so I've got student loan debt. I've got credit card debt

112
00:08:11.000 --> 00:08:15.800
That's that's about I can't remember I think it was 20 grand right between both of those and I was like okay

113
00:08:17.160 --> 00:08:21.320
Your student loans have super super low interest. So let's not worry about those

114
00:08:21.720 --> 00:08:26.440
Let's worry about your credit card because the credit card has 16% compounding and so you think about that

115
00:08:26.520 --> 00:08:28.200
It's like a negative investment, right?

116
00:08:28.200 --> 00:08:31.400
You've got something that's compounding against you versus something that's compounding for you

117
00:08:31.720 --> 00:08:39.000
So the way to guarantee a 16% compounding rate of return is to deep is to take away the drags that are at negative 16%

118
00:08:39.400 --> 00:08:44.760
All right, so if you're in this situation the first thing you do is you pay off your credit card debt all right number one

119
00:08:45.160 --> 00:08:49.560
After that you're going to have your your student loans and then your investments the reality is

120
00:08:50.360 --> 00:08:54.040
The student loans the interest because of that with the government setting them you know have set them up

121
00:08:54.520 --> 00:08:59.400
It's it's basically just it's the cost of you learning this however long ago. I think it's horribly

122
00:08:59.800 --> 00:09:05.000
Uh unethical that they they do student loans. I think I'm so wildly against student loans in general

123
00:09:05.800 --> 00:09:09.960
In what world would someone ever give an 18 year old access to two hundred thousand dollars

124
00:09:10.280 --> 00:09:15.400
Who has no skills whatsoever to then get something that has no return more than what their current earning potential is

125
00:09:15.400 --> 00:09:19.320
It makes no sense and if you if you if you can't even bankrupt your way out of it

126
00:09:19.400 --> 00:09:21.880
It is purely a scheme by banks to make more money

127
00:09:21.880 --> 00:09:24.760
Purely it makes you a slave to the bank for the rest of your life

128
00:09:25.080 --> 00:09:28.600
But there's no interest on it and so I'm not going to think about that for right now all right

129
00:09:28.600 --> 00:09:30.920
So credit card loans first and then

130
00:09:31.720 --> 00:09:35.160
You stack into investments now me personally. I just don't like having any debt

131
00:09:35.400 --> 00:09:38.920
And so if you want to it's a personal choice. It doesn't even make mathematical sense it makes emotional sense

132
00:09:39.560 --> 00:09:44.360
You can pay off the student loans and then everything else gets plowed into the SAP 500 the reason

133
00:09:44.360 --> 00:09:49.480
I say that is because Warren Buffett the the advice that he's given the people who are managing his will

134
00:09:49.880 --> 00:09:52.200
Is that he just wants everything put in the S&P 500

135
00:09:53.080 --> 00:09:55.640
Simartus investor of of all time that's what he's doing

136
00:09:55.640 --> 00:09:58.760
So I think it is worthwhile advice and very easy to follow all right

137
00:10:01.320 --> 00:10:06.200
Aimos in Asian quick break just to let you know that we've been starting to post on linked in and want to connect with you

138
00:10:06.520 --> 00:10:06.760
All right

139
00:10:06.760 --> 00:10:10.760
So send me a connection request and note letting me know that you listen to the show and I will accept it

140
00:10:10.920 --> 00:10:15.000
There's anyone you think that we should be connected with tag them in one of my or layless posts

141
00:10:15.320 --> 00:10:18.520
And I will give you all the love in the world. All right, so let's get back to the show

142
00:10:21.800 --> 00:10:25.960
Next one and you do this every month. It's called dollar cost averaging so that even when it goes down and goes up

143
00:10:26.040 --> 00:10:28.520
You're going to participate at all times. So when it's overpriced

144
00:10:28.680 --> 00:10:32.680
You're still buying and when it's underpriced you're still buying don't try and time it

145
00:10:32.760 --> 00:10:35.320
I have another video about trying to time the market you're going to lose

146
00:10:35.640 --> 00:10:40.760
So just dollar cost average in and then get rid of any of the anxiety around getting a good deal. All right

147
00:10:41.480 --> 00:10:46.840
Next one. So he's like, okay, I want to make uh, you know, I want to know how I can grow all right

148
00:10:47.560 --> 00:10:49.240
so

149
00:10:49.240 --> 00:10:53.560
This is for anyone who's in any company the closer you can tie yourself to an acquisition channel

150
00:10:53.640 --> 00:10:57.240
The more value bar to the company because you're you're driving revenue, right?

151
00:10:57.640 --> 00:11:00.040
And so what I what I explained to him was I said listen

152
00:11:01.000 --> 00:11:04.280
You've gone through all my trainings. You know you know you know the different ways of getting clients

153
00:11:04.840 --> 00:11:06.680
Pick a channel that we're not currently using

154
00:11:07.400 --> 00:11:11.080
and in your in your off time try and figure that channel out

155
00:11:11.800 --> 00:11:17.640
And we pay more for for leads uh for sales that come that don't that that someone goes and brings out brings in on their own

156
00:11:17.640 --> 00:11:19.480
Compared to stuff that comes in for our marketing

157
00:11:19.560 --> 00:11:23.160
Right? I was like so you're going to get disproportionately paid for those off the bat

158
00:11:23.320 --> 00:11:27.720
And then as soon as you figure out that system I said come to me and say hey Alex

159
00:11:27.720 --> 00:11:30.760
I figured out the system I figured out this process is getting us more clients

160
00:11:31.320 --> 00:11:36.760
I want to build a team and I think that I can show five other guys how to do this and generate revenue

161
00:11:36.760 --> 00:11:42.200
And I just would like a piece of all of their of their um of their sales and I would say absolutely

162
00:11:42.520 --> 00:11:47.720
And so if he does this he'd be able to two or three x's income as a result of that right

163
00:11:47.880 --> 00:11:52.760
And so that is a way of figuring out how to provide more value now the next thing was um

164
00:11:53.800 --> 00:11:56.120
A beat I think this came up from the family too

165
00:11:57.000 --> 00:12:01.800
Was going off on your own right now obviously as the owner of the business

166
00:12:02.040 --> 00:12:09.080
You would think that my incentive is to keep everyone and over time my my my incentive has shifted my incentive is

167
00:12:09.560 --> 00:12:10.920
I want to

168
00:12:10.920 --> 00:12:17.240
To be the best human I possibly can be and if that means that that this it's time for that person to go and spread their wings

169
00:12:17.320 --> 00:12:18.360
Then that's fine

170
00:12:18.360 --> 00:12:22.920
And I encourage them and I wish them the absolute best and I mean that genuinely because I never want to be the person

171
00:12:22.920 --> 00:12:27.400
You hold someone back from accomplishing their dreams that being said understanding risk is important

172
00:12:28.200 --> 00:12:29.240
so

173
00:12:29.240 --> 00:12:31.240
many many many many many people

174
00:12:32.040 --> 00:12:35.480
Many many many of my salespeople make more than many entrepreneurs to

175
00:12:36.040 --> 00:12:39.640
In fact, they probably go up the stats. I think the average small business owner makes like $78,000 a year

176
00:12:39.960 --> 00:12:40.600
All right

177
00:12:40.600 --> 00:12:45.320
So if my salespeople make 150 or 200,000 a year and if he does all this thing

178
00:12:45.720 --> 00:12:49.400
He could make five times with the average small business owner makes five times

179
00:12:50.120 --> 00:12:54.440
Five times in that's income, right? That's what's important and so

180
00:12:54.920 --> 00:13:00.040
Sometimes you can see the alert and this is a classic employee mistake is you look at all the revenue

181
00:13:00.040 --> 00:13:03.080
And you say oh that must be the owners that must be Alex's

182
00:13:03.720 --> 00:13:07.400
And every business owner who's watching this is laughing themselves because they know that is so far from the truth

183
00:13:07.800 --> 00:13:09.800
is is hilarious

184
00:13:09.960 --> 00:13:11.480
but

185
00:13:11.560 --> 00:13:18.600
But people still make that logical fallacy and so for perspective if you if you are a 200,000 a year salesperson

186
00:13:19.080 --> 00:13:24.920
You own in my mind a million dollar business because if you're running a 20% net margin after everything that and the thing is is

187
00:13:24.920 --> 00:13:28.920
It's not just profit in the business, but it's net free cash flows the amount of money that you as an owner can take out after

188
00:13:29.080 --> 00:13:35.320
Reinvesting in the business, right? And so if you have a you if you're a salesperson and you're making $2,000 a year

189
00:13:35.320 --> 00:13:40.520
It's the same as you owning a million dollar business and so many times and and in this instance depending on your skill set

190
00:13:40.760 --> 00:13:48.360
You may not want to deal with HR and finance and and and figuring out fulfillment and generating leaves on your own all the other aspects that come with owning a business

191
00:13:49.080 --> 00:13:51.080
Legal and all the other crap, right?

192
00:13:51.080 --> 00:13:54.040
And so I'm not saying don't be an entrepreneur obviously an entrepreneur, but I'm saying

193
00:13:54.840 --> 00:13:59.240
Understand adequately understand the risk and I think that if I adequately understand the risk

194
00:13:59.240 --> 00:14:02.840
And I'm being very very honest with everyone here. I don't know if I would have become an entrepreneur

195
00:14:02.920 --> 00:14:04.920
I really don't know because

196
00:14:05.080 --> 00:14:09.720
I'm pretty risk averse believe it or not and I think I've told you I had a really good paying job before I

197
00:14:10.520 --> 00:14:14.200
Before I quit and it was because I was so miserable that I decided to do something else

198
00:14:14.680 --> 00:14:18.760
But I did not have the table entrepreneur story of like I was always bad at school

199
00:14:18.760 --> 00:14:21.880
And I knew I had to do my like I didn't have that at all. I was good at school. I got a good job

200
00:14:21.880 --> 00:14:26.360
And I just I was miserable. So I did something else. Anyways, next point

201
00:14:28.280 --> 00:14:30.520
See if you do expense ratio pay a credit card debt. We got all that

202
00:14:32.360 --> 00:14:34.360
Take lots of assets to

203
00:14:35.320 --> 00:14:40.920
Oh last one. Okay, so I'll give you another saying to work off of track

204
00:14:43.960 --> 00:14:45.960
Don't slack

205
00:14:46.440 --> 00:14:50.360
All right easy to remember and so one of the easiest things that you can do

206
00:14:51.080 --> 00:14:56.040
To increase your net worth is start by tracking it. All right. This is one of the easiest things

207
00:14:56.040 --> 00:14:58.280
So right now every week I get a I get an email

208
00:14:59.400 --> 00:15:03.800
That has every single one of my assets every single one of my bank accounts all of my portfolios

209
00:15:04.440 --> 00:15:10.440
And it has one number at the bottom and so I know every week how I'm doing and whether I'm going up and up

210
00:15:10.440 --> 00:15:13.400
Now you might be like well, man, isn't the market volatile? Sure

211
00:15:13.480 --> 00:15:15.480
But I also have other investments too

212
00:15:15.560 --> 00:15:17.080
et cetera, but the point is

213
00:15:18.040 --> 00:15:23.320
Especially the earlier on you are you can you can decrease that cycle now. You can do that every quarter

214
00:15:23.400 --> 00:15:25.720
I'm just I tend to be obsessive about it and I like looking at it

215
00:15:26.600 --> 00:15:28.600
Because I like making progress

216
00:15:29.240 --> 00:15:34.440
If right now you are the sole provider in your household or you're a solo business owner or an entrepreneur or even you know

217
00:15:34.440 --> 00:15:39.400
You have a seven or anything your business, right? But you haven't like your your actual net worth hasn't surpassed

218
00:15:39.800 --> 00:15:41.640
You know a million five million

219
00:15:41.640 --> 00:15:49.240
Tracking every day the cumulative amount of your bank accounts is one of the single greatest things that I ever did

220
00:15:50.280 --> 00:15:54.120
Ever like ever ever ever and so

221
00:15:54.840 --> 00:15:59.160
It became this habit that first thing in the morning I would open up my my my chase app

222
00:15:59.240 --> 00:16:01.960
I would and the nice things if you have one of the big commercial banks

223
00:16:01.960 --> 00:16:05.560
You can you can they give you dashboards you can you can pull all your accounts in together

224
00:16:05.560 --> 00:16:09.080
So if you have you know two business accounts and then you have a savings in a checking personal

225
00:16:09.160 --> 00:16:12.920
And then you maybe have like a portfolio all of that stuff you can have in one place. So it's actually pretty cool

226
00:16:13.560 --> 00:16:19.640
But anyways, I'd mix all sheet that had all my assets on them all my bank accounts all my investments and everything and I would take

227
00:16:19.640 --> 00:16:24.040
Five minutes in the morning and I would update it and every single and I did it daily

228
00:16:24.040 --> 00:16:29.320
So I saw every single day and I could just scroll over time and watch my bottom number continue to go up

229
00:16:29.400 --> 00:16:33.800
And here's what's magical about this is that when you look at your bank accounts every day

230
00:16:33.800 --> 00:16:39.560
You start to get a pulse on the flow of money. You start to get a feeling for oh, yeah, two days is when this goes out

231
00:16:39.560 --> 00:16:41.160
Oh, yeah, on the first the week of the month

232
00:16:41.160 --> 00:16:45.400
This is when this goes out, but then what happens is all of a sudden you're like, hey, I went down by 200 bucks

233
00:16:46.360 --> 00:16:50.600
Let me examine let me investigate and you look in there and you're like holy crap

234
00:16:51.320 --> 00:16:54.760
I've been using this software for however long cancel, right?

235
00:16:54.760 --> 00:16:59.320
And so as soon as you start doing this you'll start decreasing you'll plug the holes you'll decrease the

236
00:16:59.960 --> 00:17:00.760
uh

237
00:17:00.760 --> 00:17:05.400
The outflows of money in your life because you're tracking and not slacking

238
00:17:05.640 --> 00:17:09.320
So as long as you're not a slacker become a tracker tracker net worth all right

239
00:17:10.040 --> 00:17:15.320
And so for this individual the the action plan that I made for him so that he could create the wealth that he wanted

240
00:17:16.040 --> 00:17:18.200
Was this kind of recap for you all right

241
00:17:18.760 --> 00:17:22.600
Number one track don't slack you have to track your net worth if you wanted to improve

242
00:17:22.760 --> 00:17:25.800
So how can you even tracks like how can you prove something you don't even know what it is

243
00:17:26.200 --> 00:17:29.080
Track track don't slack now your debt should also be on there

244
00:17:29.080 --> 00:17:32.920
So if he's paying down debt his net worth will go up because right now he's got $20,000 net

245
00:17:32.920 --> 00:17:36.920
So his net worth is negative 20,000 compared to his cash right so

246
00:17:37.640 --> 00:17:42.600
Boom track don't slack next pay off high interest credit cards or high interest loan debt first

247
00:17:43.320 --> 00:17:50.520
Next dollar cost average all of the money that you that you make an access of your expenses into the S&P mind you

248
00:17:50.520 --> 00:17:52.200
This is not investment advice

249
00:17:52.520 --> 00:17:56.200
I'll probably post illegal to slamer under the video do whatever the hell you want

250
00:17:56.680 --> 00:18:00.120
Investment has risks. There's no guaranteed returns life is risky

251
00:18:00.440 --> 00:18:03.400
You know no one comes out alive. Okay back to the main point

252
00:18:03.880 --> 00:18:09.480
So dollar cost average to the S&P and actively decrease your expenses as much as seemingly possible

253
00:18:09.640 --> 00:18:12.200
If you have a salary with variable compensation on top of it

254
00:18:13.000 --> 00:18:17.160
Try and save off of living off your salary and if that sounds crazy cool

255
00:18:17.640 --> 00:18:21.960
Don't be ordinary be extraordinary do things different because the average person

256
00:18:22.520 --> 00:18:25.400
Literally retires with nothing. Don't be like that

257
00:18:25.560 --> 00:18:30.360
You can be different and the thing is is all of these things that we aspire for which I made this other video about

258
00:18:31.640 --> 00:18:34.840
Right all these things we aspire for private jets exotic cars penthouses

259
00:18:35.400 --> 00:18:38.520
Expensive clothing fancy restaurants. I can tell you first hand

260
00:18:38.840 --> 00:18:43.880
They're not what they're cracked up to be I like I like bj's and chillies more than I like Ruth Chris

261
00:18:44.200 --> 00:18:49.240
I really like the cheap my cheap jorts more than any of the fancy pants that are out of fancy pants

262
00:18:49.960 --> 00:18:52.760
I can tell you that when I lived in a twelve hundred dollar a month apartment

263
00:18:53.480 --> 00:18:56.360
In in an Albuquerque New Mexico, which is your really nice place

264
00:18:57.240 --> 00:19:01.720
I was happiest can be I'm my happiness is in no way change having the place that I have now

265
00:19:01.960 --> 00:19:08.040
I regret the exotic car that I have and private jets are wildly expensive and you can you can get anywhere you want on

266
00:19:08.280 --> 00:19:09.960
Spirit for way less all right

267
00:19:10.760 --> 00:19:13.480
So decrease your expenses all right and

268
00:19:14.360 --> 00:19:17.880
In terms of increasing the income tie yourself to an acquisition channel

269
00:19:17.880 --> 00:19:21.720
Try and find a new way of acquiring customers of the business that you're currently in is not doing

270
00:19:22.760 --> 00:19:28.520
Do that and then build a team underneath of you that can do the thing that you just learned how to do all right

271
00:19:28.600 --> 00:19:34.600
Because then you will be closer to what I call a rainmaker and rain makers are always paid the most in every business

272
00:19:35.000 --> 00:19:40.600
And understand that when you do that if you even getting to 200,000 years you own a million dollar business

273
00:19:40.680 --> 00:19:44.120
It's the same thing right except you have way less risk

274
00:19:45.000 --> 00:19:49.480
Because if you want a million dollar business you can work your ass off two months in a row and become poorer

275
00:19:50.120 --> 00:19:54.120
Whereas if you work your ass off for two months in a row and a business you're going to get richer

276
00:19:54.280 --> 00:19:58.280
All right, and that's the differences we'd be an entrepreneur and employees that a lot of people don't adequately

277
00:19:59.400 --> 00:20:01.640
Monitor the risk. All right, and finally

278
00:20:02.680 --> 00:20:08.520
Understand that just doing volatility and risk overall something that goes up and down a lot is not necessarily risky

279
00:20:09.160 --> 00:20:16.680
It's just volatile and if you can understand that words matter and how you describe things matter and understanding the definition of words

280
00:20:17.160 --> 00:20:21.960
You can put better concepts and frameworks around your thought process and make better quality decisions

281
00:20:22.280 --> 00:20:23.960
So anyways, I hope you found this valuable

282
00:20:24.760 --> 00:20:26.760
This was a great conversation. I wish I had recorded it

283
00:20:27.240 --> 00:20:31.160
But hopefully you got the the nuggets from that you can apply to your own life and business

284
00:20:31.880 --> 00:20:35.480
Keeping awesome leave a comment and I'll catch you guys next vid. Bye