My 10 Step Checklist To Become A Millionaire

"in today's economic system we have this thing called inflation and inflation isn't something new inflation has been around for decades but hurts consumers because now when you want to go out and buy something it costs you more dollars right you want to go to Chipotle it's going to cost you more money today than it did 5 years ago because extra guac is more expensive that bull is more expensive that is inflation at work so now in this economic system we have inflation we know that inflation has happened and it will continue to happen in the future now you might say just but how do you know that inflation is going to still exist in the future well even if you go to the Federal Reserve Bank they have a page saying that they aim for 2% infl ation the Federal Reserve Bank wants inflation the government wants inflation and the reason why they want inflation is because it helps keep spurring your economic system"

"our tax code is designed to benefit the financially educated now how do I know that because guess who gets the biggest tax tax breaks and the lowest tax rates it's not the consumers who are just earning money from their job it's the investors and the business owners because guess what if we just assume now these are people who earned money from your job if you earned a million dollars working as a doctor or as a CEO versus you generated a million dollars from your Investments who do you think is going to keep the most money at the end of the day now you might think wait a million dollars as an investment and a billion dollars from a job is the same thing well maybe it is to you but it's not the same in the eyes of the IRS or the tax code because according to the tax code you get to pay a lower tax rate on those taxes as an investor than a million dollars from a doctor and maybe you get more tax breaks as an investor versus a doctor as a doctor you might have to pay half of that money in taxes which means you might be left with $500,000 as an investor you might be paying 20% to 0% of the income in taxes depending on how you invested your money meaning after that whole tax bill you might be left with $800,000 to a million $800,000 to a million is a lot more than $500,000 after taxes if you earn that money just as an employee"

"if you don't have any savings the very first thing you got to do is save $2,000 to protect you against an emergency and put this money aside in a separate Bank bank account that's there not to buy a home not to buy a car not to buy something from Gucci but to protect you against an emergency and the reason why you need to have this $2,000 per decide is because life happens it happens to every single one of us maybe get pulled over by a cop maybe something happens to your kid maybe something breaks with your car life happens it happens to every single one of us but if you're not prepared for this with some sort of financial cushion you're going to be the one that pays the price because now either you're going to have to sell out your Investments which you didn't want to do at that time because the market just happen to be crashing when that emergency happens or maybe that means you're going to have to go into credit card debt which is actually what most people end up doing when an expense comes up and you don't have the money for it now not only do you have to pay $2,000 to cover the broken water heater but then you're going have to pay an additional $800 in interest on your credit card to pay it back because you weren't prepared and that's why you want to be prepared because life happens we know this and the wealthy are working to be prepared so the first thing that I'd be doing now in the Practical steps is work to save $2,000 as fast as possible and do whatever I need to do to save that $2,000 and put it aside in a separate savings account"

"work to pay down my high interest debts like my credit card debts and the reason why I want to do this before I think about investing my money before I think about putting my money in the stock market or doing any of that other stuff is because I know that these credit card companies if I have credit card debt is costing me 15 20 25 28% a year and interest versus the historical stock market return over the last century is something like 10% a year so now if I can work to pay down my credit card debt one year faster I'm going to get a better return than investing my money in the stock market not to mention I'm going to get a guaranteed return by paying down my credit card debt versus by investing my money in the stock market I'm hoping to get a good return and this is where it is so important for you to get very aggressive here to pay down this credit card debt because this is what holds so many people back for ever becoming wealthy because when you're constantly in credit card debt you can't think about building your wealth upwards all you're trying to do is get to zero and that's why during these two steps of this checklist you have to be extremely aggressive"

"following something like a 75 15 10 plan now after I work to pay down my credit card debt this is where I need to give every dollar that I earn from here and out a job I didn't need to do that before because before every time I had an extra dollar either I'm going to work to save that $2,000 or I'm going to use that extra dollar to pay down my credit card debt now that I've zeroed all my credit card debts now that I have a couple Grand in the bank this is where I have a little bit of financial cushion and I can use my money a little bit more strategically and this is where I want to be proactive because I know what wealthy people do is they have a plan for their money before they earn their money but what everybody else does what the majority of people do is they make money they spend their money and then they wonder where all their money went no more of that and this is where I would want to build a financial system something like a 751 1510 plan which says for every dollar that I earn from here and out 75 cents is the maximum that I can spend 15 cents is the minimum that I'm investing and 10 cents is the minimum that I'm saving now the whole point behind this is this savings money is there to protect me against an emergency this investment money is there to make me wealthy this spending money is what I use to look rich this is what I used to eat this is what I used to pay for my home this is what I used to pay for my car this is what I used to pay for everything else all the things that are not really there to make me wealthy these Investments are there to make me wealthy"

"if my mortgage is sub 5% it's going to be a different answer that my mortgage is above 5% because if it's sub 5% well now I have a better like Ood of investing that money in the stock market or something and beating that return and even if I didn't put that money in the stock market well I could put this cash into a high interest savings account and I can generate 4 and a half to 5% a year in interest from a high interest savings account and use that money to pay this down if I have a 3 and half% mortgage so that's the first question that I would ask second question that I would ask myself is what is my risk tolerance am I somebody who wants to just live financially free and just be comfortable or am I somebody that wants to live a little bit bigger now for me I have a little bit of a higher risk tolerance I don't have the highest risk tolerance but I have a little bit of a higher risk tolerance and I have bigger financial goals so for me because I have the higher financial goals I know that I don't just want to be comfortable I want to have the ability to build more extreme levels of wealth I'm going to have to take different types of risks and have to do different things to my money which is why for me especially if my mortgage is under 5% I'm going to be more aggressive with my investments and as opposed to just paying down my mortgage now if my mortgage is 6 7 8% now it's a little bit of a different question because now maybe I'm going to pay down my mortgage a little bit more aggressively while also investing my money I want to be investing my money whether it's in my own business whether it's in stocks whether it's in real estate I want to be investing my money but this is where now understanding well kind of where the mortgage is is going to change how I play this game if I have a 2 and a half or 3 and a half% mortgage I'm going to continue paying the mortgage and I'm going to be investing my money other places as fast as possible"

"I don't look at buying a home as this ability to build huge generational wealth and build my wealth because I want to build my wealth from rental properties I want to build my wealth from my stocks and I want to build my wealth from businesses that I build or own I don't want to build my wealth through paying down my home I know that's what a lot of people like to talk about but that's one of the worst ways to build wealth or build generation of wealth and if you don't believe me ask any wealthy person how they became wealthy and they'll tell you they became wealthy because they invested their money in stocks or they became wealthy because they invested their money in real estate or they became wealthy because they built a business or invested in a business or something along those lines they don't say that they became wealthy because they pay down their home so I'm not saying being a homeowner is bad just understanding how that plays a part in your Investment Portfolio and this is where now if I'm thinking about that home buying question it's not really should I buy a home or should I rent a home it's what's going to give me the ability to continue investing my money into the real things that's going to make me wealthy stocks real estate my own business or other businesses what's going to give me the ability to do that if I can own a home and I can keep doing that fine if I can't then I'll keep renting the key is to be able to live wherever you can afford that way you have the the money to buy the assets that will continue paying you that will continue making you wealthy instead of just stretching so thin just to own a home"

"the bulk of my investments are cash flow Investments so now where would I be putting this money either I'm going to use this money to go out and buy rental properties that's going to pay me with cash flow or I'm going to use this money to go out and invest in divid paying stocks or dividend paying funds that I get to pay me with cash flow or I'm going to use this money to go and invest in my own business so depending on where I am in my career or what I'm interested in or what I want to do that's where I'm going to go out and invest my money but the goal now is for me to generate this cash flow and then take this cash flow that I'm generating and keep investing it back to get more cash flow if I invest in dividend paying companies or dividend paying funds I'm going to keep investing into it every single week every time you get paid I want to be as aggressive as possible I'm going to try to do more than 15 if possible and and I'm going to keep investing my money to generate this cash flow in the beginning the first couple of years you get nothing it's peanuts it makes no difference but the goal and the real key to becoming wealthy here is you keep investing your money more and more aggressively as you generate more money that way you can generate more cash flow with every dollar that you invest and then when my cash flow makes money when I get paid with those dividends I reinvest those dividends so that more money going on to buy me more cash flow so every time I make money I'm buying cash flow when my cash flow pays me with the cash flow I'm using that to buy more cash flow"

"how do I double my income and how do I double my income as many times as possible that way I can keep earning more money now that might sound a little bit unrealistic but this is where I want you to start being a little bit unrealistic because if you really want to become wealthy remember what we talked about here you have to believe that it's possible for you and the people that can actually become wealthy well guess what they believed it's possible for them and this is where now I want you to think if you're making let's just say $50,000 a year what would it take for you to earn half a million dollar a year to add another zero to that now as soon as you hear me say that you might say just bre what in the world are you talking about how in the world do you expect me to go from $50,000 to $500,000 but if I said you had to figure out how to do that what would you do maybe you'd start watching some YouTube videos on how to earn more money maybe you start reading some books on how to earn more money maybe listen to some podcasts maybe take some classes maybe start trying things and now you start experimenting on how to increase your income and guess what there are ways for you to turn your annual income into your monthly income people have done that and and then there are ways to turn your annual income into your weekly income people have done that and there are ways to turn your annual income into your daily income people have done that now of course is that very likely no but people have done that and this where you don't have to kill yourself and drive for the rest of your life trying to just increase your income but if you really want to get to that wealth sooner rather than later if you want to increase your cash flow you got to put some effort and to hear how do you increase and double your income faster and there's a lot of Education out there on how to do that"

"as you start building your wealth you need to start thinking about how do you protect your wealth that means now talking to the right people talking to the right advisers that means on the legal side how do you have lawyers there to protect you because when people realize you have money they're going to try to take their hands put it in your pocket and take some of the money for themselves I told you earlier in this video that I started investing in real estate earlier on and when I started investing in real estate I had no idea what I was doing and as I started getting involved with real estate I had a not so good tenant in my first property and the not so good tenant ended up suing me well actually she sued my real estate company and the reason why she sued my real estate company was because she claimed that the bathtub was too slippery when the water was on true story and she wanted to go after the quote unquote Rich landlord for some money by getting one of those free attorneys I had no idea what was going on I was a young kid I think it was 20 years old or 21 years old at the time when the lawsuit came in and I didn't really know how to handle it but I had insurance insurance worked to settle the claim and the other party didn't actually win anything because we found out that they didn't actually slip and fall in the bathtub they slipped and fell at a friend's barbecue but all this to say you want to make you have the right advisers because guess what in this world people will try to come after you when they realize you have money so you want to make sure you have the right legal protection there you want to start thinking about estate planning even though you might be young you want to start thinking about what happens if you were to pass away how do you get the right Estate Planning in place talk to an estate planning attorney you want to make sure you have the right Financial guidance get a good tax adviser guess what the IRS tax code is a tax code it is a rulebook and you want to make sure you have a good advisor that can guide you on how to use the rule book to pay the least amount of money in taxes legally so you want to start investing in this asset protection as you start to build that wealth"