Why You NEED To Invest 15% Of Your Paycheck To Build Wealth - Jaspreet Singh
Published: 2024-04-14
Status:
Available
|
Analyzed
Published: 2024-04-14
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
For rapid wealth growth with higher risk, invest in growth and startup companies in the stock market.
"if you want to see your money grow quickly and you don't mind taking on more risk then you should consider investing your money in the stock market especially in growth companies and these kind of more start companies where these companies are trying to grow as quick as possible as fast as possible there's more risk involved because startup companies can fail and they might not work out but you have the opportunity to see your money grow a whole lot quicker because these are companies that are working really hard to grow as big as possible and as fast as possible"
Pending
For slow and steady growth with lower risk, invest in established Blue Chip companies.
"if you just want to see slow and steady growth in your money then you can look at investing your money in more Blue Chip companies these Blue Chip companies are your bigger established companies that have already been there for a long time they already have their systems and you're just investing your money in this company that way you can see your money grow slowly the advantage with this is you have less risk because these companies are already established you already know how they're making money and you can kind of reasonably predict how much money they're going to make and how fast they're going to grow so you have less risk and so you get lower potential returns"
Pending
Instead of individual stock picking, consider investing in index funds or ETFs for diversified exposure with less risk and effort.
"the stock picking game is not for most people because picking stocks requires a lot of work a lot of research and a lot of upkeep if you're not willing to do that then instead of investing your money in individual companies like trying to find the next Amazon or Google or Facebook then what you can do is invest in something called a fund like an index fund or an ETF because these funds give you exposure to a whole bunch of different companies and so you have less risk you can put in less work but now you're kind of growing with the stock market"
Pending
To generate cash flow and passive income, invest in dividend-paying stocks or real estate.
"if you're looking for income where now you can create cash flow or passive income coming into your account every month or every year where now you can have money in your hands without selling your assets then you want to be investing your money in things like dividend paying stocks because dividend paying stocks typically pay you a check every 3 months or you can invest your money in real estate because now if you own a house or you own an apartment complex now every single month the people that are living in your real estate or using your real estate have to pay you rent every single month because they're using your asset"
Pending
Older individuals should invest more aggressively due to less time for compounding.
"the older you are the more aggressively that you need to invest just because you're older and have a started yet doesn't mean that you can't start it just means you got to be a little bit more aggressive"
Pending
Retirement planning should be based on desired lifestyle, not just government contribution limits for 401ks and IRAs.
"your 401k and Ira has limits and you got to make sure now that you're not investing your money based off of what the government limits you at you got to be investing your money based off of the way you want to live your life in retirement"
Pending
Aggressive investing is necessary for financial self-reliance due to the decline of social security and pensions.
"I need you to be an aggressive investor actually I need you to be an aggressive investor because Social Security is becoming a thing of the past and pensions are becoming history and so if you want to be able to take care of yourself and take care of your wealth and take care of your family and your finances you got to be the one to put it in place and you got to be the one to start taking action"
Pending
A minimum of 15% of income should be invested, 10% saved, and a maximum of 75% spent.
"for every dollar that you earn 15 cents is the minimum you should be investing 10 cents is the minimum you should be saving and 75 cents is the maximum you should be spending"
Pending
Investing 15% of income annually, resulting in $400,000 over 44 years, can grow to $900,000 with a 4% average annual return.
"if you invested this 15% a year and this $400,000 went into your Investments and you got a below average return for the course of your life and you only got a 4% and the return on your money if you were able to get a 4% average return on your money over your lifetime then this $400,000 will grow to right around $900,000"
Pending
Investing 15% of income annually ($400,000 total over 44 years) can grow to $1.9 million with a 7% average annual return.
"if you got an average return of 7% a year then this $400,000 you invested over your time would grow to $1.9 million"
Pending
Investing 15% of income annually ($400,000 total over 44 years) can grow to $4.8 million with a 10% average annual return.
"if you could grow your money by 10% a year which is just a little bit above average especially when you account for inflation then your money would not grow to $1.9 million it will grow to 4.8 million"
Pending
Increased income leads to greater wealth only if the additional funds are invested, not spent on liabilities.
"most people assume that it's only going to be how much money you invest because of how much money you're earning but most of the time when they say that they're not thinking about their Investments they're thinking about well if you make $100,000 a year you have more money to spend meaning you can have a nicer car and you can buy a bigger home they're not talking about their Investments but the real reason the only real reason why making more money can make you wealthier is because you have more money to invest"
Pending
Starting investing at age 21 with $625/month and a 10% annual return yields $5.9M by retirement. Delaying this start significantly reduces the final amount (e.g., starting at 40 yields $900K).
"if you invest $625 a month which is $7,500 a year you get that 10% annual return and you start when you're 21 you will retire with $5.9 million but now if for fun you started when you're 25 years old instead now now instead of $5.9 million you would have $4 million if you started when you were 30 years old now you're not going to have $4 million you're going to have $2.5 million and if you started investing the same amount of money with the same rate of return at40 years old well now you are going to retire not with $2 million not with $1 million but with $900,000"
Pending
Higher potential returns in investments generally correlate with higher levels of risk.
"the return that you get is generally correlated not always but generally correlated with the amount of risk that you take on the general rule of thumb is higher risk higher potential return"
Pending
A 1% fee on investments can reduce potential returns significantly over time due to compounding, potentially costing hundreds of thousands of dollars on a million-dollar portfolio.
"if you have a 1% fee you're not going to end up with a million dollars you're going to end up with right around $750,000 because a small little 1% fee isn't just a 1% fee you pay once it's a 1% fee you pay on every dollar that you invest which means you have less money invested and then every dollar that your dollar grows to each and every year so now you're compounding your money but you're also compounding your fees over the entire course of reinvestment"
Pending
All investment funds, including 401ks, IRAs, ETFs, mutual funds, and index funds, charge fees, commonly referred to as expense ratios.
"every single fund that you invest in whether you're investing in your 401k or your IRA or you're actively going out and investing in ETFs mutual funds and index funds is going to cost you a fee and you want to know what this fee is this fee is typically called an expense ratio"
Pending
The speaker prioritizes cash flow from investments, with dividend-paying stocks providing quarterly income that is reinvested.
"for me the bulk of my stock market portfolio especially my passive portfolio is for cash flow because for me I like cash flow cash flow funds the guac flow because when I have this type of cash flow well now I have Investments that are paying me every single quarter and every 3 months I get more money deposited into my investment account"
Pending
The QQQ ETF is recommended for investing in the NASDAQ, which is heavily weighted towards tech companies.
"if you wanted to invest in the NASDAQ which has a lot of exposure to tech companies then you can look into the QQQ ETF"
Pending
The DIA ETF is suitable for investing in the Dow Jones Industrial Average.
"if you wanted to invest in the Dow Jones you have Dia"
Pending
The VWO ETF provides exposure to emerging markets, which are overseas countries and companies not reliant on the US dollar.
"if you wanted to invest in Emerging Markets these are countries and companies overseas that don't rely on the dollar that are working to grow this is vwo"
Pending
The SD ETF is recommended for investing in high dividend-paying companies.
"if you want to invest in dividend paying ETFs this is an ETF that invest in high dividend paying companies then you can look at something like SD"
Pending
Formal education systems lack essential financial literacy training.
"there's no Financial education when we're growing up and going to school"
Pending
Wealth is generated through both labor (income from work) and capital (investments).
"you can make money from your labor and then you can make money from your capital"
Pending
True financial success and high earnings are achieved by deploying capital, not solely by being a high-paid employee.
"the highest paid people and the most financially successful people in the country are not high paid workers it's people that know how to deploy their Capital"
Pending
Wealth is built by utilizing capital to earn a share of profits.
"the way you become wealthy is by using your Capital that way you can earn a piece of profits"
Pending
Company executives have a fiduciary duty to shareholders, prioritizing profit maximization over employee compensation.
"the executives corporate duty is not to the employees it's to the shareholders it's to these people so the number one goal of the people that's running the company is to drive this the profit higher it's not to pay the employees the maximum amount possible it's to drive up the profit"
Pending
A primary reason for people being broke is spending excessively on items to appear wealthy.
"the number one reason why so many people are broke today is because they're spending all of their money trying to look rich"
Pending
Avoid financing anything that doesn't generate income; if you can't afford it with cash, you can't afford it.
"if it does not put any money in your pocket you should not be financing it period if you don't have the money to buy it in full in cash you can't afford it yet"
Pending
The debt snowball strategy involves paying off the smallest debts first, regardless of interest rates, to gain psychological wins.
"the debt snowball strategy is the strategy that Dave Ramsey talks about all the time what this says is you are going to list your debts not by the interest rate that you're paying but by the size of the debt and what you're going to do here is you're going to pay off the smallest debt first and then go to the next smallest and then the next smallest the whole idea behind this is you're going to ignore the interest rates and you're going to pay off debts in a way where you can pay off the smallest balance first that way you can get the small wins"
Pending
The debt avalanche strategy prioritizes paying off debts with the highest interest rates first to minimize overall interest paid.
"here you're going to organize your debts based off of the interest rates and then you're going to pay pay off the highest interest rate debt first because that's the debt that's costing you the most money"
Pending
Making bi-weekly debt payments instead of monthly can significantly reduce the payoff time and total interest paid, saving tens of thousands of dollars and a year of payments.
"instead of sending $500 a month I want you to send in $250 every two weeks so now you're going to send in bi-weekly payments and this is essentially going to end up being the same you're sending in $250 every 2 weeks or $500 over the course of every 4 weeks but now you're not going to pay off your debt in 112 months you're going to pay off your debt in just 95 months and now you're going to pay the same $30,000 of your principal balance which is what you owe but in the interest side of things instead of paying 25,800 you're only going to pay $21,200 so you're going to save over $44,500 in interest and you're going to save another year of paying off this credit card bill"
Pending
While cutting expenses helps, the fastest way to pay down debt and build wealth is to increase income, as there's no limit to earning potential.
"the fastest way to pay down your debt is not just by following some of these hacks is by getting more cash and the simplest and quickest way to get some more cash is to cut back some of your expenses but at the end of the day there's a limit to how much you can cut your expenses there's a limit to how much you can squeeze pennies out of yourself but there's no limit to how much money you can earn so what I want you to do is first you got to have the financial discipline of knowing how to live below your means because that's the discipline you need need to understand how to manage your money if you don't have that discipline it doesn't matter if you're making $100,000 a year or $10 million a year if you don't know how to manage the money you have you will never be able to build wealth but once you know how to do that now I want you to think a little bit bigger how can you expand the high how can you grow the amount of money that you're making because there's no limit to how much money that you can earn"
Pending
To significantly scale income for debt reduction and asset building, learn to generate money online by creating content and driving traffic.
"if you want to really be able to scale the amount of money that you're making which you can use to now pay down your debt and you can use to help build your both by investing into assets you need to know how to make money on the internet because the way the internet works is people around the world are spending time on their phones and their computers and more and more people around the world are doing this now than ever before and this is a trend that is not slowing down and it's not going to slow down anytime in the near future so what I need you to do instead of just working harder at your job which is great that's an accessible way for you to start earning some more money right now but if you want to really be able to scale the amount of money that you're making"
Pending
Financial discipline in controlling spending is essential for building wealth and paying off debt.
"if you do not have the financial discipline to understand how to control your spending you will never have the opportunity to build wealth if you want to be able to pay down your debt and be able to build your wealth you need to have the financial discipline of knowing what you can buy"
Pending
A rule of thumb for affordability: if you cannot buy five of an item, you cannot afford even one.
"if you can't buy five of them you can't afford one of them"
Pending
Saving money in banks leads to a loss of purchasing power due to inflation being higher than interest earned, effectively making one poorer.
"your savings are losing value effectively making you poorer each and every day just by saving your money because inflation is way higher than what interest your bank is paying you"
Pending
Paper dollars fail as a store of value because their worth diminishes over time, unlike traditional stores of value.
"money at its core definition is supposed to be some sort of store of value so you earn $50,000 because of this labor that you put in and the money that you have is supposed to store this $50,000 but our paper dollars don't do that"
Pending
To preserve or grow wealth, it's crucial to own assets, as simply holding cash or liabilities leads to a decrease in purchasing power due to inflation.
"if you don't invest that money if you just own liabilities if you just stack cash well that cash is going to make you poorer each and every day because the value of your dollars are dropping while the price of everything around you keeps getting more expensive which is why if you want to at least preserve the value of your money or if you want to grow the money you have you need to own assets"
Pending
Building wealth involves owning assets and avoiding the mistakes that led to financial problems, like accumulating debt through poor spending habits.
"the way you build wealth is by owning the assets and the fifth and final step to really pan down this debt as fast as possible is to not make the same mistakes that got you into this financial mess in the first place"
Pending
Wealthy individuals allocate their money into distinct categories for spending, investing, and emergency savings, ensuring every dollar has a purpose.
"wealthy people don't just keep all their Cash In One bank account they have designated money for spending they have designated money to be invested and they have designated money to be saved for an emergency they know what every dollar that they earn is going to do"
Pending
Successful financial planning involves creating models to project investment amounts needed to achieve financial goals.
"they have built a financial plan they've already built the financial models to know if I invest ,000 a month or $500 a month or whatever the amount of money is I'm going to be able to hit my financial goals"
Pending
Personal finance optimization requires tracking expenses; understanding where money goes is the first step to improving financial management.
"if you cannot track it you cannot optimize it it's the exact same with your personal finances so what I want you to do is take a piece of paper take a Google sheet I don't care and you want to write down on the top how much money you're making how much money did you make last month"
Pending
A strategy of using three separate bank accounts is recommended: one for spending, one for investing, and one for savings, with automatic transfers from a primary checking account.
"you want to open three different bank accounts and when you earn money if you're getting paid a salary from your job or if your business is paying you a salary this money needs to go into one checkings account and then out of that checkings account you want money to automatically be pulled out and put into your other two bank accounts because your bank account number one is your spending money bank account number two is going to be your investing money and bank account number three needs to be your savings money"
Pending
The speaker uses a hybrid investment approach, with automatic weekly investments into the stock market and also holds cash for opportune investments in various asset classes like gold.
"I personally like both I have a system where money is automatically invested every Wednesday I have cash leing my checkins account that gets invested into the stock market I'm investing into different asset classes like even physical gold every month but let's talk about the stock market every Wednesday cash is pulled out of my check-ins account and it's automatically invested into the stock market whether the Market's up or down it does not matter but I also am putting money into my investment account my bank account that's cash waiting to be invested where I'm looking for a good investment opportunity"
Pending
Prioritizing spending over investing hinders wealth building; to become wealthy, one must prioritize wealth creation, even if it means making sacrifices for social events.
"the key here is you have to figure out what are you prioritizing are you going to prioritize your investing or are you going to prioritize your spending because most Americans and I'm not saying this generally I'm saying this statistically most Americans prioritize their spending meaning when something comes up in life let's just say your friends want to go on a vacation or somebody's having a baby or somebody's having a wedding what are you going to do are you going to prioritize paying for that gift or paying for that event or are you going to prioritize investing that money first and if you really want to become wealthy you have to prioritize building your wealth first"
Pending
Buying assets with earned income is the key to becoming rich, as these assets then generate more income.
"when you work hard to earn money and then you take this hard-earned money and then you buy assets you are working hard to make yourself rich now these assets are going to be working to earn you more money because if you own cash while producing assets like dividend paying stocks or rental properties now these assets are working hard to pay you"
Pending
ETFs are similar to index funds but trade like stocks, generally having no minimum investment requirements and allowing for fractional shares.
"ETFs work very similar to index funds but they can be actively or passively managed so these are active or passive but the difference between now ETFs and mutual funds and index funds is they trade just like stocks so you have no minimums generally unless there is a brokerage that you're working with that doesn't allow you to buy a fractional share"
Pending
Investment decisions should be guided by goals: seeking growth (increased value), cash flow (income generation), or a combination of both.
"you have to remember what your goal is as an investor because that's going to help guide your investment decisions and your goal can generally be I want growth with my money meaning I want to see the value investment go up or I want cash flow or a hybrid of these two"
Pending
For investing in the S&P 500, the ETFs SPY and VO are recommended as they track the performance of the 500 largest companies.
"if you invested in the s&p500 which is a group of the 500 biggest companies on the stock market well there's an ETF for that and I should also tell you that these ETFs with a star next to them are funds that I have my own money invested in just as a disclaimer but if you want to invest in the s&p500 then you have a couple ways to do that you have spy and vo both of these are two different ETFs that both give you exposure to the S&P 500"
Pending
VO (ETF) and VFAAX (Index Fund) are similar investment vehicles from Vanguard, both tracking the S&P 500.
"vo and vfiax work very similarly this is an ETF this is an index fund they're both created by the same Vanguard"
Pending
When researching investments, prioritize lower fees (expense ratios) and understand the yield (dividend/cash flow) to maximize returns.
"when we talk about part number two I'll show you the real cost of this fee which is why you want to have ideal a lower fee if possible and then the second thing that you want to understand is the yield this is the dividend this is the cash flow that you get"
Pending
Higher investment returns are generally associated with higher risk.
"the return that you get is generally correlated not always but generally correlated with the amount of risk that you take on the general rule of thumb is higher risk higher potential return"
Pending
A fundamental financial concept is understanding that money can be earned through labor or capital.
"the first bit of financial education that every single person needs to understand especially if you live in America is that there are two different ways that you can make money you can make money from your labor and then you can make money from your capital"
Pending
If an item cannot be purchased outright with cash, it cannot be afforded, even with 0% APR financing deals on things like phones or cars.
"if you don't have the money to buy it in full in cash you can't afford it yet this includes doing 0% APR on your phone and financing your car if you don't have the money to buy these things outright you should not be going into debt to buy them"
Pending
An asset generates income, while a liability incurs expenses.
"an asset is something that puts money in your pocket a liability I'm just shorten that is something that takes money out of your pocket"
Pending
For wealthy individuals, the home they live in is considered a liability (a money pit) as it does not generate income, unlike investment properties.
"wealthy people don't look at the home that they live in as an asset wealthy people look at the home that they're live in as a liability because it's not putting any money in your pocket every single month your home is a money pit"
Pending
The longer one invests, the greater the wealth accumulation. Starting at age 21 with $625/month at 10% annual return yields $5.9M, while starting at 40 yields only $900K.
"the more time your money has to grow the wealthier you will become if you invest $625 a month which is $7,500 a year you get that 10% annual return and you start when you're 21 you will retire with $5.9 million but now if for fun you started when you're 25 years old instead now now instead of $5.9 million you would have $4 million if you started when you were 30 years old now you're not going to have $4 million you're going to have $2.5 million and if you started investing the same amount of money with the same rate of return at40 years old well now you are going to retire not with $2 million not with $1 million but with $900,000"
Pending
A decrease in annual investment return from 10% to 7% can drastically reduce retirement savings, potentially by millions of dollars.
"if you don't get a 10% return on your money and instead you got a 7% return on your money assuming all things are equal well now you're not going to have $5 million or $4 million now in this instance you are going to retire with $2.2 million"
Pending
Once ETFs are selected based on goals, maintain the investment strategy consistently, even during market downturns, by setting up automatic funding and avoiding reactive selling.
"the key here for you is you don't want to turn this off because people get scared oh the Market's going down so I should sell out of this or I should change my strategy because of what's happening outside once you pick the ETFs that you want you're done on your end now you set it up and forget it you don't have to touch it because now the ETF should be working to pick the Investments to pick the assets and you just have to keep funding it"
Pending
Prioritizing spending over investing hinders wealth building; to become wealthy, one must prioritize wealth creation, even if it means making sacrifices for social events.
"the key here is you have to figure out what are you prioritizing are you going to prioritize your investing or are you going to prioritize your spending because most Americans and I'm not saying this generally I'm saying this statistically most Americans prioritize their spending meaning when something comes up in life let's just say your friends want to go on a vacation or somebody's having a baby or somebody's having a wedding what are you going to do are you going to prioritize paying for that gift or paying for that event or are you going to prioritize investing that money first and if you really want to become wealthy you have to prioritize building your wealth first"
Pending
Investing $1,000 per month ($12,000 annually) with a 10% return, starting at age 21, can result in $9 million by retirement.
"if you invest $1,000 a month which is $112,000 a year you get the same 10% return you start when you're 21 years old well now you are going to retire with $9 million"
Pending
While cutting expenses is helpful for debt reduction, increasing income offers unlimited potential for generating more cash to accelerate debt payoff and wealth building, requiring financial discipline to manage funds effectively.
"the fastest way to pay down your debt is not just by following some of these hacks is by getting more cash and the simplest and quickest way to get some more cash is to cut back some of your expenses but at the end of the day there's a limit to how much you can cut your expenses there's a limit to how much you can squeeze pennies out of yourself but there's no limit to how much money you can earn so what I want you to do is first you got to have the financial discipline of knowing how to live below your means because that's the discipline you need need to understand how to manage your money if you don't have that discipline it doesn't matter if you're making $100,000 a year or $10 million a year if you don't know how to manage the money you have you will never be able to build wealth but once you know how to do that now I want you to think a little bit bigger how can you expand the high how can you grow the amount of money that you're making because there's no limit to how much money that you can earn"
Pending
Financial discipline in controlling spending is essential for building wealth and paying off debt.
"if you do not have the financial discipline to understand how to control your spending you will never have the opportunity to build wealth if you want to be able to pay down your debt and be able to build your wealth you need to have the financial discipline of knowing what you can buy"
Pending
A rule of thumb for affordability: if you cannot buy five of an item, you cannot afford even one.
"if you can't buy five of them you can't afford one of them"
Pending
Avoid financing items like phones or cars if not purchased outright with cash, as this indicates an inability to afford them.
"if you don't have the money to buy it in full in cash you can't afford it yet this includes doing 0% APR on your phone and financing your car if you don't have the money to buy these things outright you should not be going into debt to buy them"
Pending
An asset generates income, while a liability incurs expenses.
"an asset is something that puts money in your pocket a liability I'm just shorten that is something that takes money out of your pocket"
Pending
For wealthy individuals, the home they live in is considered a liability (a money pit) as it does not generate income, unlike investment properties.
"wealthy people don't look at the home that they live in as an asset wealthy people look at the home that they're live in as a liability because it's not putting any money in your pocket every single month your home is a money pit"
Pending
For rapid wealth growth with higher risk, invest in growth and startup companies in the stock market.
"if you want to see your money grow quickly and you don't mind taking on more risk then you should consider investing your money in the stock market especially in growth companies and these kind of more start companies where these companies are trying to grow as quick as possible as fast as possible there's more risk involved because startup companies can fail and they might not work out but you have the opportunity to see your money grow a whole lot quicker because these are companies that are working really hard to grow as big as possible and as fast as possible"
Pending
For slow and steady growth with lower risk, invest in established Blue Chip companies.
"if you just want to see slow and steady growth in your money then you can look at investing your money in more Blue Chip companies these Blue Chip companies are your bigger established companies that have already been there for a long time they already have their systems and you're just investing your money in this company that way you can see your money grow slowly the advantage with this is you have less risk because these companies are already established you already know how they're making money and you can kind of reasonably predict how much money they're going to make and how fast they're going to grow so you have less risk and so you get lower potential returns"
Pending
Instead of individual stock picking, consider investing in index funds or ETFs for diversified exposure with less risk and effort.
"the stock picking game is not for most people because picking stocks requires a lot of work a lot of research and a lot of upkeep if you're not willing to do that then instead of investing your money in individual companies like trying to find the next Amazon or Google or Facebook then what you can do is invest in something called a fund like an index fund or an ETF because these funds give you exposure to a whole bunch of different companies and so you have less risk you can put in less work but now you're kind of growing with the stock market"
Pending
To generate cash flow and passive income, invest in dividend-paying stocks or real estate.
"if you're looking for income where now you can create cash flow or passive income coming into your account every month or every year where now you can have money in your hands without selling your assets then you want to be investing your money in things like dividend paying stocks because dividend paying stocks typically pay you a check every 3 months or you can invest your money in real estate because now if you own a house or you own an apartment complex now every single month the people that are living in your real estate or using your real estate have to pay you rent every single month because they're using your asset"
Pending
Older individuals should invest more aggressively due to less time for compounding.
"the older you are the more aggressively that you need to invest just because you're older and have a started yet doesn't mean that you can't start it just means you got to be a little bit more aggressive"
Pending
Retirement planning should be based on desired lifestyle, not just government contribution limits for 401ks and IRAs.
"your 401k and Ira has limits and you got to make sure now that you're not investing your money based off of what the government limits you at you got to be investing your money based off of the way you want to live your life in retirement"
Pending
Aggressive investing is necessary for financial self-reliance due to the decline of social security and pensions.
"I need you to be an aggressive investor actually I need you to be an aggressive investor because Social Security is becoming a thing of the past and pensions are becoming history and so if you want to be able to take care of yourself and take care of your wealth and take care of your family and your finances you got to be the one to put it in place and you got to be the one to start taking action"
Pending
A minimum of 15% of income should be invested, 10% saved, and a maximum of 75% spent.
"for every dollar that you earn 15 cents is the minimum you should be investing 10 cents is the minimum you should be saving and 75 cents is the maximum you should be spending"
Pending
Investing 15% of income annually, resulting in $400,000 over 44 years, can grow to $900,000 with a 4% average annual return.
"if you invested this 15% a year and this $400,000 went into your Investments and you got a below average return for the course of your life and you only got a 4% and the return on your money if you were able to get a 4% average return on your money over your lifetime then this $400,000 will grow to right around $900,000"
Pending
Investing 15% of income annually ($400,000 total over 44 years) can grow to $1.9 million with a 7% average annual return.
"if you got an average return of 7% a year then this $400,000 you invested over your time would grow to $1.9 million"
Pending
Investing 15% of income annually ($400,000 total over 44 years) can grow to $4.8 million with a 10% average annual return.
"if you could grow your money by 10% a year which is just a little bit above average especially when you account for inflation then your money would not grow to $1.9 million it will grow to 4.8 million"
Pending
Increased income leads to greater wealth only if the additional funds are invested, not spent on liabilities.
"most people assume that it's only going to be how much money you invest because of how much money you're earning but most of the time when they say that they're not thinking about their Investments they're thinking about well if you make $100,000 a year you have more money to spend meaning you can have a nicer car and you can buy a bigger home they're not talking about their Investments but the real reason the only real reason why making more money can make you wealthier is because you have more money to invest"
Pending
Starting investing at age 21 with $625/month and a 10% annual return yields $5.9M by retirement. Delaying this start significantly reduces the final amount (e.g., starting at 40 yields $900K).
"if you invest $625 a month which is $7,500 a year you get that 10% annual return and you start when you're 21 you will retire with $5.9 million but now if for fun you started when you're 25 years old instead now now instead of $5.9 million you would have $4 million if you started when you were 30 years old now you're not going to have $4 million you're going to have $2.5 million and if you started investing the same amount of money with the same rate of return at40 years old well now you are going to retire not with $2 million not with $1 million but with $900,000"
Pending
Higher potential returns in investments generally correlate with higher levels of risk.
"the return that you get is generally correlated not always but generally correlated with the amount of risk that you take on the general rule of thumb is higher risk higher potential return"
Pending
A 1% fee on investments can reduce potential returns significantly over time due to compounding, potentially costing hundreds of thousands of dollars on a million-dollar portfolio.
"if you have a 1% fee you're not going to end up with a million dollars you're going to end up with right around $750,000 because a small little 1% fee isn't just a 1% fee you pay once it's a 1% fee you pay on every dollar that you invest which means you have less money invested and then every dollar that your dollar grows to each and every year so now you're compounding your money but you're also compounding your fees over the entire course of reinvestment"
Pending
All investment funds, including 401ks, IRAs, ETFs, mutual funds, and index funds, charge fees, commonly referred to as expense ratios.
"every single fund that you invest in whether you're investing in your 401k or your IRA or you're actively going out and investing in ETFs mutual funds and index funds is going to cost you a fee and you want to know what this fee is this fee is typically called an expense ratio"
Pending
The speaker prioritizes cash flow from investments, with dividend-paying stocks providing quarterly income that is reinvested.
"for me the bulk of my stock market portfolio especially my passive portfolio is for cash flow because for me I like cash flow cash flow funds the guac flow because when I have this type of cash flow well now I have Investments that are paying me every single quarter and every 3 months I get more money deposited into my investment account"
Pending
The QQQ ETF is recommended for investing in the NASDAQ, which is heavily weighted towards tech companies.
"if you wanted to invest in the NASDAQ which has a lot of exposure to tech companies then you can look into the QQQ ETF"
Pending
The DIA ETF is suitable for investing in the Dow Jones Industrial Average.
"if you wanted to invest in the Dow Jones you have Dia"
Pending
The SD ETF is recommended for investing in high dividend-paying companies.
"if you want to invest in dividend paying ETFs this is an ETF that invest in high dividend paying companies then you can look at something like SD"
Pending
For investing in the S&P 500, the ETFs SPY and VO are recommended as they track the performance of the 500 largest companies.
"if you invested in the s&p500 which is a group of the 500 biggest companies on the stock market well there's an ETF for that and I should also tell you that these ETFs with a star next to them are funds that I have my own money invested in just as a disclaimer but if you want to invest in the s&p500 then you have a couple ways to do that you have spy and vo both of these are two different ETFs that both give you exposure to the S&P 500"
Pending
VO (ETF) and VFAAX (Index Fund) are similar investment vehicles from Vanguard, both tracking the S&P 500.
"vo and vfiax work very similarly this is an ETF this is an index fund they're both created by the same Vanguard"
Pending
When researching investments, prioritize lower fees (expense ratios) and understand the yield (dividend/cash flow) to maximize returns.
"when we talk about part number two I'll show you the real cost of this fee which is why you want to have ideal a lower fee if possible and then the second thing that you want to understand is the yield this is the dividend this is the cash flow that you get"
Pending
A fundamental financial concept is understanding that money can be earned through labor or capital.
"the first bit of financial education that every single person needs to understand especially if you live in America is that there are two different ways that you can make money you can make money from your labor and then you can make money from your capital"
Pending
True financial success and high earnings are achieved by deploying capital, not solely by being a high-paid employee.
"the highest paid people and the most financially successful people in the country are not high paid workers it's people that know how to deploy their Capital"
Pending
Wealth is built by utilizing capital to earn a share of profits.
"the way you become wealthy is by using your Capital that way you can earn a piece of profits"
Pending
Company executives have a fiduciary duty to shareholders, prioritizing profit maximization over employee compensation.
"the executives corporate duty is not to the employees it's to the shareholders it's to these people so the number one goal of the people that's running the company is to drive this the profit higher it's not to pay the employees the maximum amount possible it's to drive up the profit"
Pending
A primary reason for people being broke is spending excessively on items to appear wealthy.
"the number one reason why so many people are broke today is because they're spending all of their money trying to look rich"
Pending
Avoid financing anything that doesn't generate income; if you can't afford it with cash, you can't afford it.
"if it does not put any money in your pocket you should not be financing it period if you don't have the money to buy it in full in cash you can't afford it yet"
Pending
The debt snowball strategy involves paying off the smallest debts first, regardless of interest rates, to gain psychological wins.
"the debt snowball strategy is the strategy that Dave Ramsey talks about all the time what this says is you are going to list your debts not by the interest rate that you're paying but by the size of the debt and what you're going to do here is you're going to pay off the smallest debt first and then go to the next smallest and then the next smallest the whole idea behind this is you're going to ignore the interest rates and you're going to pay off debts in a way where you can pay off the smallest balance first that way you can get the small wins"
Pending
The debt avalanche strategy prioritizes paying off debts with the highest interest rates first to minimize overall interest paid.
"here you're going to organize your debts based off of the interest rates and then you're going to pay pay off the highest interest rate debt first because that's the debt that's costing you the most money"
Pending
Making bi-weekly debt payments instead of monthly can significantly reduce the payoff time and total interest paid, saving tens of thousands of dollars and a year of payments.
"instead of sending $500 a month I want you to send in $250 every two weeks so now you're going to send in bi-weekly payments and this is essentially going to end up being the same you're sending in $250 every 2 weeks or $500 over the course of every 4 weeks but now you're not going to pay off your debt in 112 months you're going to pay off your debt in just 95 months and now you're going to pay the same $30,000 of your principal balance which is what you owe but in the interest side of things instead of paying 25,800 you're only going to pay $21,200 so you're going to save over $44,500 in interest and you're going to save another year of paying off this credit card bill"
Pending
While cutting expenses is helpful for debt reduction, increasing income offers unlimited potential for generating more cash to accelerate debt payoff and wealth building, requiring financial discipline to manage funds effectively.
"the fastest way to pay down your debt is not just by following some of these hacks is by getting more cash and the simplest and quickest way to get some more cash is to cut back some of your expenses but at the end of the day there's a limit to how much you can cut your expenses there's a limit to how much you can squeeze pennies out of yourself but there's no limit to how much money you can earn so what I want you to do is first you got to have the financial discipline of knowing how to live below your means because that's the discipline you need need to understand how to manage your money if you don't have that discipline it doesn't matter if you're making $100,000 a year or $10 million a year if you don't know how to manage the money you have you will never be able to build wealth but once you know how to do that now I want you to think a little bit bigger how can you expand the high how can you grow the amount of money that you're making because there's no limit to how much money that you can earn"
Pending
Financial discipline in controlling spending is essential for building wealth and paying off debt.
"if you do not have the financial discipline to understand how to control your spending you will never have the opportunity to build wealth if you want to be able to pay down your debt and be able to build your wealth you need to have the financial discipline of knowing what you can buy"
Pending
A rule of thumb for affordability: if you cannot buy five of an item, you cannot afford even one.
"if you can't buy five of them you can't afford one of them"
Pending
Saving money in banks leads to a loss of purchasing power due to inflation being higher than interest earned, effectively making one poorer.
"your savings are losing value effectively making you poorer each and every day just by saving your money because inflation is way higher than what interest your bank is paying you"
Pending
Paper dollars fail as a store of value because their worth diminishes over time, unlike traditional stores of value.
"money at its core definition is supposed to be some sort of store of value so you earn $50,000 because of this labor that you put in and the money that you have is supposed to store this $50,000 but our paper dollars don't do that"
Pending
To preserve or grow wealth, it's crucial to own assets, as simply holding cash or liabilities leads to a decrease in purchasing power due to inflation.
"if you don't invest that money if you just own liabilities if you just stack cash well that cash is going to make you poorer each and every day because the value of your dollars are dropping while the price of everything around you keeps getting more expensive which is why if you want to at least preserve the value of your money or if you want to grow the money you have you need to own assets"
Pending
Building wealth involves owning assets and avoiding the mistakes that led to financial problems, like accumulating debt through poor spending habits.
"the way you build wealth is by owning the assets and the fifth and final step to really pan down this debt as fast as possible is to not make the same mistakes that got you into this financial mess in the first place"
Pending
Wealthy individuals allocate their money into distinct categories for spending, investing, and emergency savings, ensuring every dollar has a purpose.
"wealthy people don't just keep all their Cash In One bank account they have designated money for spending they have designated money to be invested and they have designated money to be saved for an emergency they know what every dollar that they earn is going to do"
Pending
Successful financial planning involves creating models to project investment amounts needed to achieve financial goals.
"they have built a financial plan they've already built the financial models to know if I invest ,000 a month or $500 a month or whatever the amount of money is I'm going to be able to hit my financial goals"
Pending
Personal finance optimization requires tracking expenses; understanding where money goes is the first step to improving financial management.
"if you cannot track it you cannot optimize it it's the exact same with your personal finances so what I want you to do is take a piece of paper take a Google sheet I don't care and you want to write down on the top how much money you're making how much money did you make last month"
Pending
A strategy of using three separate bank accounts is recommended: one for spending, one for investing, and one for savings, with automatic transfers from a primary checking account.
"you want to open three different bank accounts and when you earn money if you're getting paid a salary from your job or if your business is paying you a salary this money needs to go into one checkings account and then out of that checkings account you want money to automatically be pulled out and put into your other two bank accounts because your bank account number one is your spending money bank account number two is going to be your investing money and bank account number three needs to be your savings money"
Pending
The speaker uses a hybrid investment approach, with automatic weekly investments into the stock market and also holds cash for opportune investments in various asset classes like gold.
"I personally like both I have a system where money is automatically invested every Wednesday I have cash leing my checkins account that gets invested into the stock market I'm investing into different asset classes like even physical gold every month but let's talk about the stock market every Wednesday cash is pulled out of my check-ins account and it's automatically invested into the stock market whether the Market's up or down it does not matter but I also am putting money into my investment account my bank account that's cash waiting to be invested where I'm looking for a good investment opportunity"
Pending
Prioritizing spending over investing hinders wealth building; to become wealthy, one must prioritize wealth creation, even if it means making sacrifices for social events.
"the key here is you have to figure out what are you prioritizing are you going to prioritize your investing or are you going to prioritize your spending because most Americans and I'm not saying this generally I'm saying this statistically most Americans prioritize their spending meaning when something comes up in life let's just say your friends want to go on a vacation or somebody's having a baby or somebody's having a wedding what are you going to do are you going to prioritize paying for that gift or paying for that event or are you going to prioritize investing that money first and if you really want to become wealthy you have to prioritize building your wealth first"
Pending
Buying assets with earned income is the key to becoming rich, as these assets then generate more income.
"when you work hard to earn money and then you take this hard-earned money and then you buy assets you are working hard to make yourself rich now these assets are going to be working to earn you more money because if you own cash while producing assets like dividend paying stocks or rental properties now these assets are working hard to pay you"
Pending
ETFs are similar to index funds but trade like stocks, generally having no minimum investment requirements and allowing for fractional shares.
"ETFs work very similar to index funds but they can be actively or passively managed so these are active or passive but the difference between now ETFs and mutual funds and index funds is they trade just like stocks so you have no minimums generally unless there is a brokerage that you're working with that doesn't allow you to buy a fractional share"
Pending
Investment decisions should be guided by goals: seeking growth (increased value), cash flow (income generation), or a combination of both.
"you have to remember what your goal is as an investor because that's going to help guide your investment decisions and your goal can generally be I want growth with my money meaning I want to see the value investment go up or I want cash flow or a hybrid of these two"
Pending
The QQQ ETF is recommended for investing in the NASDAQ, which is heavily weighted towards tech companies.
"if you wanted to invest in the NASDAQ which has a lot of exposure to tech companies then you can look into the QQQ ETF"
Pending
The DIA ETF is suitable for investing in the Dow Jones Industrial Average.
"if you wanted to invest in the Dow Jones you have Dia"
Pending
The SD ETF is recommended for investing in high dividend-paying companies.
"if you want to invest in dividend paying ETFs this is an ETF that invest in high dividend paying companies then you can look at something like SD"
Pending
For investing in the S&P 500, the ETFs SPY and VO are recommended as they track the performance of the 500 largest companies.
"if you invested in the s&p500 which is a group of the 500 biggest companies on the stock market well there's an ETF for that and I should also tell you that these ETFs with a star next to them are funds that I have my own money invested in just as a disclaimer but if you want to invest in the s&p500 then you have a couple ways to do that you have spy and vo both of these are two different ETFs that both give you exposure to the S&P 500"
Pending
VO (ETF) and VFAAX (Index Fund) are similar investment vehicles from Vanguard, both tracking the S&P 500.
"vo and vfiax work very similarly this is an ETF this is an index fund they're both created by the same Vanguard"
Pending
When researching investments, prioritize lower fees (expense ratios) and understand the yield (dividend/cash flow) to maximize returns.
"when we talk about part number two I'll show you the real cost of this fee which is why you want to have ideal a lower fee if possible and then the second thing that you want to understand is the yield this is the dividend this is the cash flow that you get"
Pending
A fundamental financial concept is understanding that money can be earned through labor or capital.
"the first bit of financial education that every single person needs to understand especially if you live in America is that there are two different ways that you can make money you can make money from your labor and then you can make money from your capital"
Pending
True financial success and high earnings are achieved by deploying capital, not solely by being a high-paid employee.
"the highest paid people and the most financially successful people in the country are not high paid workers it's people that know how to deploy their Capital"
Pending
Wealth is built by utilizing capital to earn a share of profits.
"the way you become wealthy is by using your Capital that way you can earn a piece of profits"
Pending
Company executives have a fiduciary duty to shareholders, prioritizing profit maximization over employee compensation.
"the executives corporate duty is not to the employees it's to the shareholders it's to these people so the number one goal of the people that's running the company is to drive this the profit higher it's not to pay the employees the maximum amount possible it's to drive up the profit"
Pending
A primary reason for people being broke is spending excessively on items to appear wealthy.
"the number one reason why so many people are broke today is because they're spending all of their money trying to look rich"
Pending
Avoid financing anything that doesn't generate income; if you can't afford it with cash, you can't afford it.
"if it does not put any money in your pocket you should not be financing it period if you don't have the money to buy it in full in cash you can't afford it yet"
Pending
The debt snowball strategy involves paying off the smallest debts first, regardless of interest rates, to gain psychological wins.
"the debt snowball strategy is the strategy that Dave Ramsey talks about all the time what this says is you are going to list your debts not by the interest rate that you're paying but by the size of the debt and what you're going to do here is you're going to pay off the smallest debt first and then go to the next smallest and then the next smallest the whole idea behind this is you're going to ignore the interest rates and you're going to pay off debts in a way where you can pay off the smallest balance first that way you can get the small wins"
Pending
The debt avalanche strategy prioritizes paying off debts with the highest interest rates first to minimize overall interest paid.
"here you're going to organize your debts based off of the interest rates and then you're going to pay pay off the highest interest rate debt first because that's the debt that's costing you the most money"
Pending
Making bi-weekly debt payments instead of monthly can significantly reduce the payoff time and total interest paid, saving tens of thousands of dollars and a year of payments.
"instead of sending $500 a month I want you to send in $250 every two weeks so now you're going to send in bi-weekly payments and this is essentially going to end up being the same you're sending in $250 every 2 weeks or $500 over the course of every 4 weeks but now you're not going to pay off your debt in 112 months you're going to pay off your debt in just 95 months and now you're going to pay the same $30,000 of your principal balance which is what you owe but in the interest side of things instead of paying 25,800 you're only going to pay $21,200 so you're going to save over $44,500 in interest and you're going to save another year of paying off this credit card bill"
Pending
While cutting expenses is helpful for debt reduction, increasing income offers unlimited potential for generating more cash to accelerate debt payoff and wealth building, requiring financial discipline to manage funds effectively.
"the fastest way to pay down your debt is not just by following some of these hacks is by getting more cash and the simplest and quickest way to get some more cash is to cut back some of your expenses but at the end of the day there's a limit to how much you can cut your expenses there's a limit to how much you can squeeze pennies out of yourself but there's no limit to how much money you can earn so what I want you to do is first you got to have the financial discipline of knowing how to live below your means because that's the discipline you need need to understand how to manage your money if you don't have that discipline it doesn't matter if you're making $100,000 a year or $10 million a year if you don't know how to manage the money you have you will never be able to build wealth but once you know how to do that now I want you to think a little bit bigger how can you expand the high how can you grow the amount of money that you're making because there's no limit to how much money that you can earn"
Pending
Financial discipline in controlling spending is essential for building wealth and paying off debt.
"if you do not have the financial discipline to understand how to control your spending you will never have the opportunity to build wealth if you want to be able to pay down your debt and be able to build your wealth you need to have the financial discipline of knowing what you can buy"
Pending
A rule of thumb for affordability: if you cannot buy five of an item, you cannot afford even one.
"if you can't buy five of them you can't afford one of them"
Pending
Saving money in banks leads to a loss of purchasing power due to inflation being higher than interest earned, effectively making one poorer.
"your savings are losing value effectively making you poorer each and every day just by saving your money because inflation is way higher than what interest your bank is paying you"
Pending
Paper dollars fail as a store of value because their worth diminishes over time, unlike traditional stores of value.
"money at its core definition is supposed to be some sort of store of value so you earn $50,000 because of this labor that you put in and the money that you have is supposed to store this $50,000 but our paper dollars don't do that"
Pending
To preserve or grow wealth, it's crucial to own assets, as simply holding cash or liabilities leads to a decrease in purchasing power due to inflation.
"if you don't invest that money if you just own liabilities if you just stack cash well that cash is going to make you poorer each and every day because the value of your dollars are dropping while the price of everything around you keeps getting more expensive which is why if you want to at least preserve the value of your money or if you want to grow the money you have you need to own assets"
Pending
Building wealth involves owning assets and avoiding the mistakes that led to financial problems, like accumulating debt through poor spending habits.
"the way you build wealth is by owning the assets and the fifth and final step to really pan down this debt as fast as possible is to not make the same mistakes that got you into this financial mess in the first place"
Pending
Wealthy individuals allocate their money into distinct categories for spending, investing, and emergency savings, ensuring every dollar has a purpose.
"wealthy people don't just keep all their Cash In One bank account they have designated money for spending they have designated money to be invested and they have designated money to be saved for an emergency they know what every dollar that they earn is going to do"
Pending
Successful financial planning involves creating models to project investment amounts needed to achieve financial goals.
"they have built a financial plan they've already built the financial models to know if I invest ,000 a month or $500 a month or whatever the amount of money is I'm going to be able to hit my financial goals"
Pending
Personal finance optimization requires tracking expenses; understanding where money goes is the first step to improving financial management.
"if you cannot track it you cannot optimize it it's the exact same with your personal finances so what I want you to do is take a piece of paper take a Google sheet I don't care and you want to write down on the top how much money you're making how much money did you make last month"
Pending
A strategy of using three separate bank accounts is recommended: one for spending, one for investing, and one for savings, with automatic transfers from a primary checking account.
"you want to open three different bank accounts and when you earn money if you're getting paid a salary from your job or if your business is paying you a salary this money needs to go into one checkings account and then out of that checkings account you want money to automatically be pulled out and put into your other two bank accounts because your bank account number one is your spending money bank account number two is going to be your investing money and bank account number three needs to be your savings money"
Pending
The speaker uses a hybrid investment approach, with automatic weekly investments into the stock market and also holds cash for opportune investments in various asset classes like gold.
"I personally like both I have a system where money is automatically invested every Wednesday I have cash leing my checkins account that gets invested into the stock market I'm investing into different asset classes like even physical gold every month but let's talk about the stock market every Wednesday cash is pulled out of my check-ins account and it's automatically invested into the stock market whether the Market's up or down it does not matter but I also am putting money into my investment account my bank account that's cash waiting to be invested where I'm looking for a good investment opportunity"
Pending
Prioritizing spending over investing hinders wealth building; to become wealthy, one must prioritize wealth creation, even if it means making sacrifices for social events.
"the key here is you have to figure out what are you prioritizing are you going to prioritize your investing or are you going to prioritize your spending because most Americans and I'm not saying this generally I'm saying this statistically most Americans prioritize their spending meaning when something comes up in life let's just say your friends want to go on a vacation or somebody's having a baby or somebody's having a wedding what are you going to do are you going to prioritize paying for that gift or paying for that event or are you going to prioritize investing that money first and if you really want to become wealthy you have to prioritize building your wealth first"
Pending
Buying assets with earned income is the key to becoming rich, as these assets then generate more income.
"when you work hard to earn money and then you take this hard-earned money and then you buy assets you are working hard to make yourself rich now these assets are going to be working to earn you more money because if you own cash while producing assets like dividend paying stocks or rental properties now these assets are working hard to pay you"
Pending
ETFs are similar to index funds but trade like stocks, generally having no minimum investment requirements and allowing for fractional shares.
"ETFs work very similar to index funds but they can be actively or passively managed so these are active or passive but the difference between now ETFs and mutual funds and index funds is they trade just like stocks so you have no minimums generally unless there is a brokerage that you're working with that doesn't allow you to buy a fractional share"
Pending
Investment decisions should be guided by goals: seeking growth (increased value), cash flow (income generation), or a combination of both.
"you have to remember what your goal is as an investor because that's going to help guide your investment decisions and your goal can generally be I want growth with my money meaning I want to see the value investment go up or I want cash flow or a hybrid of these two"
Pending
The QQQ ETF is recommended for investing in the NASDAQ, which is heavily weighted towards tech companies.
"if you wanted to invest in the NASDAQ which has a lot of exposure to tech companies then you can look into the QQQ ETF"
Pending
The DIA ETF is suitable for investing in the Dow Jones Industrial Average.
"if you wanted to invest in the Dow Jones you have Dia"
Pending
The SD ETF is recommended for investing in high dividend-paying companies.
"if you want to invest in dividend paying ETFs this is an ETF that invest in high dividend paying companies then you can look at something like SD"
Pending
For investing in the S&P 500, the ETFs SPY and VO are recommended as they track the performance of the 500 largest companies.
"if you invested in the s&p500 which is a group of the 500 biggest companies on the stock market well there's an ETF for that and I should also tell you that these ETFs with a star next to them are funds that I have my own money invested in just as a disclaimer but if you want to invest in the s&p500 then you have a couple ways to do that you have spy and vo both of these are two different ETFs that both give you exposure to the S&P 500"
Pending
VO (ETF) and VFAAX (Index Fund) are similar investment vehicles from Vanguard, both tracking the S&P 500.
"vo and vfiax work very similarly this is an ETF this is an index fund they're both created by the same Vanguard"
Pending
When researching investments, prioritize lower fees (expense ratios) and understand the yield (dividend/cash flow) to maximize returns.
"when we talk about part number two I'll show you the real cost of this fee which is why you want to have ideal a lower fee if possible and then the second thing that you want to understand is the yield this is the dividend this is the cash flow that you get"
Pending
A fundamental financial concept is understanding that money can be earned through labor or capital.
"the first bit of financial education that every single person needs to understand especially if you live in America is that there are two different ways that you can make money you can make money from your labor and then you can make money from your capital"
Pending
True financial success and high earnings are achieved by deploying capital, not solely by being a high-paid employee.
"the highest paid people and the most financially successful people in the country are not high paid workers it's people that know how to deploy their Capital"
Pending
Wealth is built by utilizing capital to earn a share of profits.
"the way you become wealthy is by using your Capital that way you can earn a piece of profits"
Pending
Company executives have a fiduciary duty to shareholders, prioritizing profit maximization over employee compensation.
"the executives corporate duty is not to the employees it's to the shareholders it's to these people so the number one goal of the people that's running the company is to drive this the profit higher it's not to pay the employees the maximum amount possible it's to drive up the profit"
Pending
A primary reason for people being broke is spending excessively on items to appear wealthy.
"the number one reason why so many people are broke today is because they're spending all of their money trying to look rich"
Pending
Avoid financing anything that doesn't generate income; if you can't afford it with cash, you can't afford it.
"if it does not put any money in your pocket you should not be financing it period if you don't have the money to buy it in full in cash you can't afford it yet"
Pending
The debt snowball strategy involves paying off the smallest debts first, regardless of interest rates, to gain psychological wins.
"the debt snowball strategy is the strategy that Dave Ramsey talks about all the time what this says is you are going to list your debts not by the interest rate that you're paying but by the size of the debt and what you're going to do here is you're going to pay off the smallest debt first and then go to the next smallest and then the next smallest the whole idea behind this is you're going to ignore the interest rates and you're going to pay off debts in a way where you can pay off the smallest balance first that way you can get the small wins"
Pending
The debt avalanche strategy prioritizes paying off debts with the highest interest rates first to minimize overall interest paid.
"here you're going to organize your debts based off of the interest rates and then you're going to pay pay off the highest interest rate debt first because that's the debt that's costing you the most money"
Pending
Making bi-weekly debt payments instead of monthly can significantly reduce the payoff time and total interest paid, saving tens of thousands of dollars and a year of payments.
"instead of sending $500 a month I want you to send in $250 every two weeks so now you're going to send in bi-weekly payments and this is essentially going to end up being the same you're sending in $250 every 2 weeks or $500 over the course of every 4 weeks but now you're not going to pay off your debt in 112 months you're going to pay off your debt in just 95 months and now you're going to pay the same $30,000 of your principal balance which is what you owe but in the interest side of things instead of paying 25,800 you're only going to pay $21,200 so you're going to save over $44,500 in interest and you're going to save another year of paying off this credit card bill"
Pending
While cutting expenses is helpful for debt reduction, increasing income offers unlimited potential for generating more cash to accelerate debt payoff and wealth building, requiring financial discipline to manage funds effectively.
"the fastest way to pay down your debt is not just by following some of these hacks is by getting more cash and the simplest and quickest way to get some more cash is to cut back some of your expenses but at the end of the day there's a limit to how much you can cut your expenses there's a limit to how much you can squeeze pennies out of yourself but there's no limit to how much money you can earn so what I want you to do is first you got to have the financial discipline of knowing how to live below your means because that's the discipline you need need to understand how to manage your money if you don't have that discipline it doesn't matter if you're making $100,000 a year or $10 million a year if you don't know how to manage the money you have you will never be able to build wealth but once you know how to do that now I want you to think a little bit bigger how can you expand the high how can you grow the amount of money that you're making because there's no limit to how much money that you can earn"
Pending
Financial discipline in controlling spending is essential for building wealth and paying off debt.
"if you do not have the financial discipline to understand how to control your spending you will never have the opportunity to build wealth if you want to be able to pay down your debt and be able to build your wealth you need to have the financial discipline of knowing what you can buy"
Pending
A rule of thumb for affordability: if you cannot buy five of an item, you cannot afford even one.
"if you can't buy five of them you can't afford one of them"
Pending
Saving money in banks leads to a loss of purchasing power due to inflation being higher than interest earned, effectively making one poorer.
"your savings are losing value effectively making you poorer each and every day just by saving your money because inflation is way higher than what interest your bank is paying you"
Pending
Paper dollars fail as a store of value because their worth diminishes over time, unlike traditional stores of value.
"money at its core definition is supposed to be some sort of store of value so you earn $50,000 because of this labor that you put in and the money that you have is supposed to store this $50,000 but our paper dollars don't do that"
Pending
To preserve or grow wealth, it's crucial to own assets, as simply holding cash or liabilities leads to a decrease in purchasing power due to inflation.
"if you don't invest that money if you just own liabilities if you just stack cash well that cash is going to make you poorer each and every day because the value of your dollars are dropping while the price of everything around you keeps getting more expensive which is why if you want to at least preserve the value of your money or if you want to grow the money you have you need to own assets"
Pending
Building wealth involves owning assets and avoiding the mistakes that led to financial problems, like accumulating debt through poor spending habits.
"the way you build wealth is by owning the assets and the fifth and final step to really pan down this debt as fast as possible is to not make the same mistakes that got you into this financial mess in the first place"
Pending
Wealthy individuals allocate their money into distinct categories for spending, investing, and emergency savings, ensuring every dollar has a purpose.
"wealthy people don't just keep all their Cash In One bank account they have designated money for spending they have designated money to be invested and they have designated money to be saved for an emergency they know what every dollar that they earn is going to do"
Pending
Successful financial planning involves creating models to project investment amounts needed to achieve financial goals.
"they have built a financial plan they've already built the financial models to know if I invest ,000 a month or $500 a month or whatever the amount of money is I'm going to be able to hit my financial goals"
Pending
Personal finance optimization requires tracking expenses; understanding where money goes is the first step to improving financial management.
"if you cannot track it you cannot optimize it it's the exact same with your personal finances so what I want you to do is take a piece of paper take a Google sheet I don't care and you want to write down on the top how much money you're making how much money did you make last month"
Pending
A strategy of using three separate bank accounts is recommended: one for spending, one for investing, and one for savings, with automatic transfers from a primary checking account.
"you want to open three different bank accounts and when you earn money if you're getting paid a salary from your job or if your business is paying you a salary this money needs to go into one checkings account and then out of that checkings account you want money to automatically be pulled out and put into your other two bank accounts because your bank account number one is your spending money bank account number two is going to be your investing money and bank account number three needs to be your savings money"
Pending
The speaker uses a hybrid investment approach, with automatic weekly investments into the stock market and also holds cash for opportune investments in various asset classes like gold.
"I personally like both I have a system where money is automatically invested every Wednesday I have cash leing my checkins account that gets invested into the stock market I'm investing into different asset classes like even physical gold every month but let's talk about the stock market every Wednesday cash is pulled out of my check-ins account and it's automatically invested into the stock market whether the Market's up or down it does not matter but I also am putting money into my investment account my bank account that's cash waiting to be invested where I'm looking for a good investment opportunity"
Pending
Prioritizing spending over investing hinders wealth building; to become wealthy, one must prioritize wealth creation, even if it means making sacrifices for social events.
"the key here is you have to figure out what are you prioritizing are you going to prioritize your investing or are you going to prioritize your spending because most Americans and I'm not saying this generally I'm saying this statistically most Americans prioritize their spending meaning when something comes up in life let's just say your friends want to go on a vacation or somebody's having a baby or somebody's having a wedding what are you going to do are you going to prioritize paying for that gift or paying for that event or are you going to prioritize investing that money first and if you really want to become wealthy you have to prioritize building your wealth first"
Pending
Buying assets with earned income is the key to becoming rich, as these assets then generate more income.
"when you work hard to earn money and then you take this hard-earned money and then you buy assets you are working hard to make yourself rich now these assets are going to be working to earn you more money because if you own cash while producing assets like dividend paying stocks or rental properties now these assets are working hard to pay you"
Pending
ETFs are similar to index funds but trade like stocks, generally having no minimum investment requirements and allowing for fractional shares.
"ETFs work very similar to index funds but they can be actively or passively managed so these are active or passive but the difference between now ETFs and mutual funds and index funds is they trade just like stocks so you have no minimums generally unless there is a brokerage that you're working with that doesn't allow you to buy a fractional share"
Pending
Investment decisions should be guided by goals: seeking growth (increased value), cash flow (income generation), or a combination of both.
"you have to remember what your goal is as an investor because that's going to help guide your investment decisions and your goal can generally be I want growth with my money meaning I want to see the value investment go up or I want cash flow or a hybrid of these two"
Pending
The QQQ ETF is recommended for investing in the NASDAQ, which is heavily weighted towards tech companies.
"if you wanted to invest in the NASDAQ which has a lot of exposure to tech companies then you can look into the QQQ ETF"
Pending
The DIA ETF is suitable for investing in the Dow Jones Industrial Average.
"if you wanted to invest in the Dow Jones you have Dia"
Pending
The SD ETF is recommended for investing in high dividend-paying companies.
"if you want to invest in dividend paying ETFs this is an ETF that invest in high dividend paying companies then you can look at something like SD"
Pending
For investing in the S&P 500, the ETFs SPY and VO are recommended as they track the performance of the 500 largest companies.
"if you invested in the s&p500 which is a group of the 500 biggest companies on the stock market well there's an ETF for that and I should also tell you that these ETFs with a star next to them are funds that I have my own money invested in just as a disclaimer but if you want to invest in the s&p500 then you have a couple ways to do that you have spy and vo both of these are two different ETFs that both give you exposure to the S&P 500"
Pending
VO (ETF) and VFAAX (Index Fund) are similar investment vehicles from Vanguard, both tracking the S&P 500.
"vo and vfiax work very similarly this is an ETF this is an index fund they're both created by the same Vanguard"
Pending
When researching investments, prioritize lower fees (expense ratios) and understand the yield (dividend/cash flow) to maximize returns.
"when we talk about part number two I'll show you the real cost of this fee which is why you want to have ideal a lower fee if possible and then the second thing that you want to understand is the yield this is the dividend this is the cash flow that you get"
Pending
A fundamental financial concept is understanding that money can be earned through labor or capital.
"the first bit of financial education that every single person needs to understand especially if you live in America is that there are two different ways that you can make money you can make money from your labor and then you can make money from your capital"
Pending
True financial success and high earnings are achieved by deploying capital, not solely by being a high-paid employee.
"the highest paid people and the most financially successful people in the country are not high paid workers it's people that know how to deploy their Capital"
Pending
Wealth is built by utilizing capital to earn a share of profits.
"the way you become wealthy is by using your Capital that way you can earn a piece of profits"
Pending
Company executives have a fiduciary duty to shareholders, prioritizing profit maximization over employee compensation.
"the executives corporate duty is not to the employees it's to the shareholders it's to these people so the number one goal of the people that's running the company is to drive this the profit higher it's not to pay the employees the maximum amount possible it's to drive up the profit"
Pending
A primary reason for people being broke is spending excessively on items to appear wealthy.
"the number one reason why so many people are broke today is because they're spending all of their money trying to look rich"
Pending
Avoid financing anything that doesn't generate income; if you can't afford it with cash, you can't afford it.
"if it does not put any money in your pocket you should not be financing it period if you don't have the money to buy it in full in cash you can't afford it yet"
Pending
The debt snowball strategy involves paying off the smallest debts first, regardless of interest rates, to gain psychological wins.
"the debt snowball strategy is the strategy that Dave Ramsey talks about all the time what this says is you are going to list your debts not by the interest rate that you're paying but by the size of the debt and what you're going to do here is you're going to pay off the smallest debt first and then go to the next smallest and then the next smallest the whole idea behind this is you're going to ignore the interest rates and you're going to pay off debts in a way where you can pay off the smallest balance first that way you can get the small wins"
Pending
The debt avalanche strategy prioritizes paying off debts with the highest interest rates first to minimize overall interest paid.
"here you're going to organize your debts based off of the interest rates and then you're going to pay pay off the highest interest rate debt first because that's the debt that's costing you the most money"
Pending
Making bi-weekly debt payments instead of monthly can significantly reduce the payoff time and total interest paid, saving tens of thousands of dollars and a year of payments.
"instead of sending $500 a month I want you to send in $250 every two weeks so now you're going to send in bi-weekly payments and this is essentially going to end up being the same you're sending in $250 every 2 weeks or $500 over the course of every 4 weeks but now you're not going to pay off your debt in 112 months you're going to pay off your debt in just 95 months and now you're going to pay the same $30,000 of your principal balance which is what you owe but in the interest side of things instead of paying 25,800 you're only going to pay $21,200 so you're going to save over $44,500 in interest and you're going to save another year of paying off this credit card bill"
Pending
While cutting expenses is helpful for debt reduction, increasing income offers unlimited potential for generating more cash to accelerate debt payoff and wealth building, requiring financial discipline to manage funds effectively.
"the fastest way to pay down your debt is not just by following some of these hacks is by getting more cash and the simplest and quickest way to get some more cash is to cut back some of your expenses but at the end of the day there's a limit to how much you can cut your expenses there's a limit to how much you can squeeze pennies out of yourself but there's no limit to how much money you can earn so what I want you to do is first you got to have the financial discipline of knowing how to live below your means because that's the discipline you need need to understand how to manage your money if you don't have that discipline it doesn't matter if you're making $100,000 a year or $10 million a year if you don't know how to manage the money you have you will never be able to build wealth but once you know how to do that now I want you to think a little bit bigger how can you expand the high how can you grow the amount of money that you're making because there's no limit to how much money that you can earn"
Pending
Financial discipline in controlling spending is essential for building wealth and paying off debt.
"if you do not have the financial discipline to understand how to control your spending you will never have the opportunity to build wealth if you want to be able to pay down your debt and be able to build your wealth you need to have the financial discipline of knowing what you can buy"
Pending
A rule of thumb for affordability: if you cannot buy five of an item, you cannot afford even one.
"if you can't buy five of them you can't afford one of them"
Pending
Saving money in banks leads to a loss of purchasing power due to inflation being higher than interest earned, effectively making one poorer.
"your savings are losing value effectively making you poorer each and every day just by saving your money because inflation is way higher than what interest your bank is paying you"
Pending
Paper dollars fail as a store of value because their worth diminishes over time, unlike traditional stores of value.
"money at its core definition is supposed to be some sort of store of value so you earn $50,000 because of this labor that you put in and the money that you have is supposed to store this $50,000 but our paper dollars don't do that"
Pending
To preserve or grow wealth, it's crucial to own assets, as simply holding cash or liabilities leads to a decrease in purchasing power due to inflation.
"if you don't invest that money if you just own liabilities if you just stack cash well that cash is going to make you poorer each and every day because the value of your dollars are dropping while the price of everything around you keeps getting more expensive which is why if you want to at least preserve the value of your money or if you want to grow the money you have you need to own assets"
Pending
Building wealth involves owning assets and avoiding the mistakes that led to financial problems, like accumulating debt through poor spending habits.
"the way you build wealth is by owning the assets and the fifth and final step to really pan down this debt as fast as possible is to not make the same mistakes that got you into this financial mess in the first place"
Pending
Wealthy individuals allocate their money into distinct categories for spending, investing, and emergency savings, ensuring every dollar has a purpose.
"wealthy people don't just keep all their Cash In One bank account they have designated money for spending they have designated money to be invested and they have designated money to be saved for an emergency they know what every dollar that they earn is going to do"
Pending
Successful financial planning involves creating models to project investment amounts needed to achieve financial goals.
"they have built a financial plan they've already built the financial models to know if I invest ,000 a month or $500 a month or whatever the amount of money is I'm going to be able to hit my financial goals"
Pending
Personal finance optimization requires tracking expenses; understanding where money goes is the first step to improving financial management.
"if you cannot track it you cannot optimize it it's the exact same with your personal finances so what I want you to do is take a piece of paper take a Google sheet I don't care and you want to write down on the top how much money you're making how much money did you make last month"
Pending
A strategy of using three separate bank accounts is recommended: one for spending, one for investing, and one for savings, with automatic transfers from a primary checking account.
"you want to open three different bank accounts and when you earn money if you're getting paid a salary from your job or if your business is paying you a salary this money needs to go into one checkings account and then out of that checkings account you want money to automatically be pulled out and put into your other two bank accounts because your bank account number one is your spending money bank account number two is going to be your investing money and bank account number three needs to be your savings money"
Pending
The speaker uses a hybrid investment approach, with automatic weekly investments into the stock market and also holds cash for opportune investments in various asset classes like gold.
"I personally like both I have a system where money is automatically invested every Wednesday I have cash leing my checkins account that gets invested into the stock market I'm investing into different asset classes like even physical gold every month but let's talk about the stock market every Wednesday cash is pulled out of my check-ins account and it's automatically invested into the stock market whether the Market's up or down it does not matter but I also am putting money into my investment account my bank account that's cash waiting to be invested where I'm looking for a good investment opportunity"
Pending
Prioritizing spending over investing hinders wealth building; to become wealthy, one must prioritize wealth creation, even if it means making sacrifices for social events.
"the key here is you have to figure out what are you prioritizing are you going to prioritize your investing or are you going to prioritize your spending because most Americans and I'm not saying this generally I'm saying this statistically most Americans prioritize their spending meaning when something comes up in life let's just say your friends want to go on a vacation or somebody's having a baby or somebody's having a wedding what are you going to do are you going to prioritize paying for that gift or paying for that event or are you going to prioritize investing that money first and if you really want to become wealthy you have to prioritize building your wealth first"
Pending
Buying assets with earned income is the key to becoming rich, as these assets then generate more income.
"when you work hard to earn money and then you take this hard-earned money and then you buy assets you are working hard to make yourself rich now these assets are going to be working to earn you more money because if you own cash while producing assets like dividend paying stocks or rental properties now these assets are working hard to pay you"
Pending
ETFs are similar to index funds but trade like stocks, generally having no minimum investment requirements and allowing for fractional shares.
"ETFs work very similar to index funds but they can be actively or passively managed so these are active or passive but the difference between now ETFs and mutual funds and index funds is they trade just like stocks so you have no minimums generally unless there is a brokerage that you're working with that doesn't allow you to buy a fractional share"
Pending
Investment decisions should be guided by goals: seeking growth (increased value), cash flow (income generation), or a combination of both.
"you have to remember what your goal is as an investor because that's going to help guide your investment decisions and your goal can generally be I want growth with my money meaning I want to see the value investment go up or I want cash flow or a hybrid of these two"
Pending
The QQQ ETF is recommended for investing in the NASDAQ, which is heavily weighted towards tech companies.
"if you wanted to invest in the NASDAQ which has a lot of exposure to tech companies then you can look into the QQQ ETF"
Pending
The DIA ETF is suitable for investing in the Dow Jones Industrial Average.
"if you wanted to invest in the Dow Jones you have Dia"
Pending
The SD ETF is recommended for investing in high dividend-paying companies.
"if you want to invest in dividend paying ETFs this is an ETF that invest in high dividend paying companies then you can look at something like SD"
Pending
For investing in the S&P 500, the ETFs SPY and VO are recommended as they track the performance of the 500 largest companies.
"if you invested in the s&p500 which is a group of the 500 biggest companies on the stock market well there's an ETF for that and I should also tell you that these ETFs with a star next to them are funds that I have my own money invested in just as a disclaimer but if you want to invest in the s&p500 then you have a couple ways to do that you have spy and vo both of these are two different ETFs that both give you exposure to the S&P 500"
Pending
VO (ETF) and VFAAX (Index Fund) are similar investment vehicles from Vanguard, both tracking the S&P 500.
"vo and vfiax work very similarly this is an ETF this is an index fund they're both created by the same Vanguard"
Pending
When researching investments, prioritize lower fees (expense ratios) and understand the yield (dividend/cash flow) to maximize returns.
"when we talk about part number two I'll show you the real cost of this fee which is why you want to have ideal a lower fee if possible and then the second thing that you want to understand is the yield this is the dividend this is the cash flow that you get"
Pending
A fundamental financial concept is understanding that money can be earned through labor or capital.
"the first bit of financial education that every single person needs to understand especially if you live in America is that there are two different ways that you can make money you can make money from your labor and then you can make money from your capital"
Pending
True financial success and high earnings are achieved by deploying capital, not solely by being a high-paid employee.
"the highest paid people and the most financially successful people in the country are not high paid workers it's people that know how to deploy their Capital"
Pending
Wealth is built by utilizing capital to earn a share of profits.
"the way you become wealthy is by using your Capital that way you can earn a piece of profits"
Pending
Company executives have a fiduciary duty to shareholders, prioritizing profit maximization over employee compensation.
"the executives corporate duty is not to the employees it's to the shareholders it's to these people so the number one goal of the people that's running the company is to drive this the profit higher it's not to pay the employees the maximum amount possible it's to drive up the profit"
Pending
A primary reason for people being broke is spending excessively on items to appear wealthy.
"the number one reason why so many people are broke today is because they're spending all of their money trying to look rich"
Pending
Avoid financing anything that doesn't generate income; if you can't afford it with cash, you can't afford it.
"if it does not put any money in your pocket you should not be financing it period if you don't have the money to buy it in full in cash you can't afford it yet"
Pending
The debt snowball strategy involves paying off the smallest debts first, regardless of interest rates, to gain psychological wins.
"the debt snowball strategy is the strategy that Dave Ramsey talks about all the time what this says is you are going to list your debts not by the interest rate that you're paying but by the size of the debt and what you're going to do here is you're going to pay off the smallest debt first and then go to the next smallest and then the next smallest the whole idea behind this is you're going to ignore the interest rates and you're going to pay off debts in a way where you can pay off the smallest balance first that way you can get the small wins"
Pending
The debt avalanche strategy prioritizes paying off debts with the highest interest rates first to minimize overall interest paid.
"here you're going to organize your debts based off of the interest rates and then you're going to pay pay off the highest interest rate debt first because that's the debt that's costing you the most money"
Pending
Making bi-weekly debt payments instead of monthly can significantly reduce the payoff time and total interest paid, saving tens of thousands of dollars and a year of payments.
"instead of sending $500 a month I want you to send in $250 every two weeks so now you're going to send in bi-weekly payments and this is essentially going to end up being the same you're sending in $250 every 2 weeks or $500 over the course of every 4 weeks but now you're not going to pay off your debt in 112 months you're going to pay off your debt in just 95 months and now you're going to pay the same $30,000 of your principal balance which is what you owe but in the interest side of things instead of paying 25,800 you're only going to pay $21,200 so you're going to save over $44,500 in interest and you're going to save another year of paying off this credit card bill"
Pending
While cutting expenses is helpful for debt reduction, increasing income offers unlimited potential for generating more cash to accelerate debt payoff and wealth building, requiring financial discipline to manage funds effectively.
"the fastest way to pay down your debt is not just by following some of these hacks is by getting more cash and the simplest and quickest way to get some more cash is to cut back some of your expenses but at the end of the day there's a limit to how much you can cut your expenses there's a limit to how much you can squeeze pennies out of yourself but there's no limit to how much money you can earn so what I want you to do is first you got to have the financial discipline of knowing how to live below your means because that's the discipline you need need to understand how to manage your money if you don't have that discipline it doesn't matter if you're making $100,000 a year or $10 million a year if you don't know how to manage the money you have you will never be able to build wealth but once you know how to do that now I want you to think a little bit bigger how can you expand the high how can you grow the amount of money that you're making because there's no limit to how much money that you can earn"
Pending
Financial discipline in controlling spending is essential for building wealth and paying off debt.
"if you do not have the financial discipline to understand how to control your spending you will never have the opportunity to build wealth if you want to be able to pay down your debt and be able to build your wealth you need to have the financial discipline of knowing what you can buy"
Pending
A rule of thumb for affordability: if you cannot buy five of an item, you cannot afford even one.
"if you can't buy five of them you can't afford one of them"
Pending
Saving money in banks leads to a loss of purchasing power due to inflation being higher than interest earned, effectively making one poorer.
"your savings are losing value effectively making you poorer each and every day just by saving your money because inflation is way higher than what interest your bank is paying you"
Pending
Paper dollars fail as a store of value because their worth diminishes over time, unlike traditional stores of value.
"money at its core definition is supposed to be some sort of store of value so you earn $50,000 because of this labor that you put in and the money that you have is supposed to store this $50,000 but our paper dollars don't do that"
Pending
To preserve or grow wealth, it's crucial to own assets, as simply holding cash or liabilities leads to a decrease in purchasing power due to inflation.
"if you don't invest that money if you just own liabilities if you just stack cash well that cash is going to make you poorer each and every day because the value of your dollars are dropping while the price of everything around you keeps getting more expensive which is why if you want to at least preserve the value of your money or if you want to grow the money you have you need to own assets"
Pending
Building wealth involves owning assets and avoiding the mistakes that led to financial problems, like accumulating debt through poor spending habits.
"the way you build wealth is by owning the assets and the fifth and final step to really pan down this debt as fast as possible is to not make the same mistakes that got you into this financial mess in the first place"
Pending
Wealthy individuals allocate their money into distinct categories for spending, investing, and emergency savings, ensuring every dollar has a purpose.
"wealthy people don't just keep all their Cash In One bank account they have designated money for spending they have designated money to be invested and they have designated money to be saved for an emergency they know what every dollar that they earn is going to do"
Pending
Successful financial planning involves creating models to project investment amounts needed to achieve financial goals.
"they have built a financial plan they've already built the financial models to know if I invest ,000 a month or $500 a month or whatever the amount of money is I'm going to be able to hit my financial goals"
Pending
Personal finance optimization requires tracking expenses; understanding where money goes is the first step to improving financial management.
"if you cannot track it you cannot optimize it it's the exact same with your personal finances so what I want you to do is take a piece of paper take a Google sheet I don't care and you want to write down on the top how much money you're making how much money did you make last month"
Pending
A strategy of using three separate bank accounts is recommended: one for spending, one for investing, and one for savings, with automatic transfers from a primary checking account.
"you want to open three different bank accounts and when you earn money if you're getting paid a salary from your job or if your business is paying you a salary this money needs to go into one checkings account and then out of that checkings account you want money to automatically be pulled out and put into your other two bank accounts because your bank account number one is your spending money bank account number two is going to be your investing money and bank account number three needs to be your savings money"
Pending
The speaker uses a hybrid investment approach, with automatic weekly investments into the stock market and also holds cash for opportune investments in various asset classes like gold.
"I personally like both I have a system where money is automatically invested every Wednesday I have cash leing my checkins account that gets invested into the stock market I'm investing into different asset classes like even physical gold every month but let's talk about the stock market every Wednesday cash is pulled out of my check-ins account and it's automatically invested into the stock market whether the Market's up or down it does not matter but I also am putting money into my investment account my bank account that's cash waiting to be invested where I'm looking for a good investment opportunity"
Pending
Prioritizing spending over investing hinders wealth building; to become wealthy, one must prioritize wealth creation, even if it means making sacrifices for social events.
"the key here is you have to figure out what are you prioritizing are you going to prioritize your investing or are you going to prioritize your spending because most Americans and I'm not saying this generally I'm saying this statistically most Americans prioritize their spending meaning when something comes up in life let's just say your friends want to go on a vacation or somebody's having a baby or somebody's having a wedding what are you going to do are you going to prioritize paying for that gift or paying for that event or are you going to prioritize investing that money first and if you really want to become wealthy you have to prioritize building your wealth first"
Pending
Buying assets with earned income is the key to becoming rich, as these assets then generate more income.
"when you work hard to earn money and then you take this hard-earned money and then you buy assets you are working hard to make yourself rich now these assets are going to be working to earn you more money because if you own cash while producing assets like dividend paying stocks or rental properties now these assets are working hard to pay you"
Pending
ETFs are similar to index funds but trade like stocks, generally having no minimum investment requirements and allowing for fractional shares.
"ETFs work very similar to index funds but they can be actively or passively managed so these are active or passive but the difference between now ETFs and mutual funds and index funds is they trade just like stocks so you have no minimums generally unless there is a brokerage that you're working with that doesn't allow you to buy a fractional share"
Pending
Investment decisions should be guided by goals: seeking growth (increased value), cash flow (income generation), or a combination of both.
"you have to remember what your goal is as an investor because that's going to help guide your investment decisions and your goal can generally be I want growth with my money meaning I want to see the value investment go up or I want cash flow or a hybrid of these two"
Pending
The QQQ ETF is recommended for investing in the NASDAQ, which is heavily weighted towards tech companies.
"if you wanted to invest in the NASDAQ which has a lot of exposure to tech companies then you can look into the QQQ ETF"
Pending
The DIA ETF is suitable for investing in the Dow Jones Industrial Average.
"if you wanted to invest in the Dow Jones you have Dia"
Pending
The SD ETF is recommended for investing in high dividend-paying companies.
"if you want to invest in dividend paying ETFs this is an ETF that invest in high dividend paying companies then you can look at something like SD"
Pending
For investing in the S&P 500, the ETFs SPY and VO are recommended as they track the performance of the 500 largest companies.
"if you invested in the s&p500 which is a group of the 500 biggest companies on the stock market well there's an ETF for that and I should also tell you that these ETFs with a star next to them are funds that I have my own money invested in just as a disclaimer but if you want to invest in the s&p500 then you have a couple ways to do that you have spy and vo both of these are two different ETFs that both give you exposure to the S&P 500"
Pending
VO (ETF) and VFAAX (Index Fund) are similar investment vehicles from Vanguard, both tracking the S&P 500.
"vo and vfiax work very similarly this is an ETF this is an index fund they're both created by the same Vanguard"
Pending
When researching investments, prioritize lower fees (expense ratios) and understand the yield (dividend/cash flow) to maximize returns.
"when we talk about part number two I'll show you the real cost of this fee which is why you want to have ideal a lower fee if possible and then the second thing that you want to understand is the yield this is the dividend this is the cash flow that you get"
Pending
A fundamental financial concept is understanding that money can be earned through labor or capital.
"the first bit of financial education that every single person needs to understand especially if you live in America is that there are two different ways that you can make money you can make money from your labor and then you can make money from your capital"
Pending
True financial success and high earnings are achieved by deploying capital, not solely by being a high-paid employee.
"the highest paid people and the most financially successful people in the country are not high paid workers it's people that know how to deploy their Capital"
Pending
Wealth is built by utilizing capital to earn a share of profits.
"the way you become wealthy is by using your Capital that way you can earn a piece of profits"
Pending
Company executives have a fiduciary duty to shareholders, prioritizing profit maximization over employee compensation.
"the executives corporate duty is not to the employees it's to the shareholders it's to these people so the number one goal of the people that's running the company is to drive this the profit higher it's not to pay the employees the maximum amount possible it's to drive up the profit"
Pending
A primary reason for people being broke is spending excessively on items to appear wealthy.
"the number one reason why so many people are broke today is because they're spending all of their money trying to look rich"
Pending
Avoid financing anything that doesn't generate income; if you can't afford it with cash, you can't afford it.
"if it does not put any money in your pocket you should not be financing it period if you don't have the money to buy it in full in cash you can't afford it yet"
Pending
The debt snowball strategy involves paying off the smallest debts first, regardless of interest rates, to gain psychological wins.
"the debt snowball strategy is the strategy that Dave Ramsey talks about all the time what this says is you are going to list your debts not by the interest rate that you're paying but by the size of the debt and what you're going to do here is you're going to pay off the smallest debt first and then go to the next smallest and then the next smallest the whole idea behind this is you're going to ignore the interest rates and you're going to pay off debts in a way where you can pay off the smallest balance first that way you can get the small wins"
Pending
The debt avalanche strategy prioritizes paying off debts with the highest interest rates first to minimize overall interest paid.
"here you're going to organize your debts based off of the interest rates and then you're going to pay pay off the highest interest rate debt first because that's the debt that's costing you the most money"
Pending
Making bi-weekly debt payments instead of monthly can significantly reduce the payoff time and total interest paid, saving tens of thousands of dollars and a year of payments.
"instead of sending $500 a month I want you to send in $250 every two weeks so now you're going to send in bi-weekly payments and this is essentially going to end up being the same you're sending in $250 every 2 weeks or $500 over the course of every 4 weeks but now you're not going to pay off your debt in 112 months you're going to pay off your debt in just 95 months and now you're going to pay the same $30,000 of your principal balance which is what you owe but in the interest side of things instead of paying 25,800 you're only going to pay $21,200 so you're going to save over $44,500 in interest and you're going to save another year of paying off this credit card bill"
Pending
While cutting expenses is helpful for debt reduction, increasing income offers unlimited potential for generating more cash to accelerate debt payoff and wealth building, requiring financial discipline to manage funds effectively.
"the fastest way to pay down your debt is not just by following some of these hacks is by getting more cash and the simplest and quickest way to get some more cash is to cut back some of your expenses but at the end of the day there's a limit to how much you can cut your expenses there's a limit to how much you can squeeze pennies out of yourself but there's no limit to how much money you can earn so what I want you to do is first you got to have the financial discipline of knowing how to live below your means because that's the discipline you need need to understand how to manage your money if you don't have that discipline it doesn't matter if you're making $100,000 a year or $10 million a year if you don't know how to manage the money you have you will never be able to build wealth but once you know how to do that now I want you to think a little bit bigger how can you expand the high how can you grow the amount of money that you're making because there's no limit to how much money that you can earn"
Pending
Financial discipline in controlling spending is essential for building wealth and paying off debt.
"if you do not have the financial discipline to understand how to control your spending you will never have the opportunity to build wealth if you want to be able to pay down your debt and be able to build your wealth you need to have the financial discipline of knowing what you can buy"
Pending
A rule of thumb for affordability: if you cannot buy five of an item, you cannot afford even one.
"if you can't buy five of them you can't afford one of them"
Pending
Saving money in banks leads to a loss of purchasing power due to inflation being higher than interest earned, effectively making one poorer.
"your savings are losing value effectively making you poorer each and every day just by saving your money because inflation is way higher than what interest your bank is paying you"
Pending
Paper dollars fail as a store of value because their worth diminishes over time, unlike traditional stores of value.
"money at its core definition is supposed to be some sort of store of value so you earn $50,000 because of this labor that you put in and the money that you have is supposed to store this $50,000 but our paper dollars don't do that"
Pending
To preserve or grow wealth, it's crucial to own assets, as simply holding cash or liabilities leads to a decrease in purchasing power due to inflation.
"if you don't invest that money if you just own liabilities if you just stack cash well that cash is going to make you poorer each and every day because the value of your dollars are dropping while the price of everything around you keeps getting more expensive which is why if you want to at least preserve the value of your money or if you want to grow the money you have you need to own assets"
Pending
Building wealth involves owning assets and avoiding the mistakes that led to financial problems, like accumulating debt through poor spending habits.
"the way you build wealth is by owning the assets and the fifth and final step to really pan down this debt as fast as possible is to not make the same mistakes that got you into this financial mess in the first place"
Pending
Wealthy individuals allocate their money into distinct categories for spending, investing, and emergency savings, ensuring every dollar has a purpose.
"wealthy people don't just keep all their Cash In One bank account they have designated money for spending they have designated money to be invested and they have designated money to be saved for an emergency they know what every dollar that they earn is going to do"
Pending
Successful financial planning involves creating models to project investment amounts needed to achieve financial goals.
"they have built a financial plan they've already built the financial models to know if I invest ,000 a month or $500 a month or whatever the amount of money is I'm going to be able to hit my financial goals"
Pending
Personal finance optimization requires tracking expenses; understanding where money goes is the first step to improving financial management.
"if you cannot track it you cannot optimize it it's the exact same with your personal finances so what I want you to do is take a piece of paper take a Google sheet I don't care and you want to write down on the top how much money you're making how much money did you make last month"
Pending
A strategy of using three separate bank accounts is recommended: one for spending, one for investing, and one for savings, with automatic transfers from a primary checking account.
"you want to open three different bank accounts and when you earn money if you're getting paid a salary from your job or if your business is paying you a salary this money needs to go into one checkings account and then out of that checkings account you want money to automatically be pulled out and put into your other two bank accounts because your bank account number one is your spending money bank account number two is going to be your investing money and bank account number three needs to be your savings money"
Pending
The speaker uses a hybrid investment approach, with automatic weekly investments into the stock market and also holds cash for opportune investments in various asset classes like gold.
"I personally like both I have a system where money is automatically invested every Wednesday I have cash leing my checkins account that gets invested into the stock market I'm investing into different asset classes like even physical gold every month but let's talk about the stock market every Wednesday cash is pulled out of my check-ins account and it's automatically invested into the stock market whether the Market's up or down it does not matter but I also am putting money into my investment account my bank account that's cash waiting to be invested where I'm looking for a good investment opportunity"
Pending
Prioritizing spending over investing hinders wealth building; to become wealthy, one must prioritize wealth creation, even if it means making sacrifices for social events.
"the key here is you have to figure out what are you prioritizing are you going to prioritize your investing or are you going to prioritize your spending because most Americans and I'm not saying this generally I'm saying this statistically most Americans prioritize their spending meaning when something comes up in life let's just say your friends want to go on a vacation or somebody's having a baby or somebody's having a wedding what are you going to do are you going to prioritize paying for that gift or paying for that event or are you going to prioritize investing that money first and if you really want to become wealthy you have to prioritize building your wealth first"
Pending
Buying assets with earned income is the key to becoming rich, as these assets then generate more income.
"when you work hard to earn money and then you take this hard-earned money and then you buy assets you are working hard to make yourself rich now these assets are going to be working to earn you more money because if you own cash while producing assets like dividend paying stocks or rental properties now these assets are working hard to pay you"
Pending
ETFs are similar to index funds but trade like stocks, generally having no minimum investment requirements and allowing for fractional shares.
"ETFs work very similar to index funds but they can be actively or passively managed so these are active or passive but the difference between now ETFs and mutual funds and index funds is they trade just like stocks so you have no minimums generally unless there is a brokerage that you're working with that doesn't allow you to buy a fractional share"
Pending
Investment decisions should be guided by goals: seeking growth (increased value), cash flow (income generation), or a combination of both.
"you have to remember what your goal is as an investor because that's going to help guide your investment decisions and your goal can generally be I want growth with my money meaning I want to see the value investment go up or I want cash flow or a hybrid of these two"
Pending
The QQQ ETF is recommended for investing in the NASDAQ, which is heavily weighted towards tech companies.
"if you wanted to invest in the NASDAQ which has a lot of exposure to tech companies then you can look into the QQQ ETF"
Pending
The DIA ETF is suitable for investing in the Dow Jones Industrial Average.
"if you wanted to invest in the Dow Jones you have Dia"
Pending
The SD ETF is recommended for investing in high dividend-paying companies.
"if you want to invest in dividend paying ETFs this is an ETF that invest in high dividend paying companies then you can look at something like SD"
Pending
For investing in the S&P 500, the ETFs SPY and VO are recommended as they track the performance of the 500 largest companies.
"if you invested in the s&p500 which is a group of the 500 biggest companies on the stock market well there's an ETF for that and I should also tell you that these ETFs with a star next to them are funds that I have my own money invested in just as a disclaimer but if you want to invest in the s&p500 then you have a couple ways to do that you have spy and vo both of these are two different ETFs that both give you exposure to the S&P 500"
Pending
VO (ETF) and VFAAX (Index Fund) are similar investment vehicles from Vanguard, both tracking the S&P 500.
"vo and vfiax work very similarly this is an ETF this is an index fund they're both created by the same Vanguard"
Pending
When researching investments, prioritize lower fees (expense ratios) and understand the yield (dividend/cash flow) to maximize returns.
"when we talk about part number two I'll show you the real cost of this fee which is why you want to have ideal a lower fee if possible and then the second thing that you want to understand is the yield this is the dividend this is the cash flow that you get"
Pending
A fundamental financial concept is understanding that money can be earned through labor or capital.
"the first bit of financial education that every single person needs to understand especially if you live in America is that there are two different ways that you can make money you can make money from your labor and then you can make money from your capital"
Pending
True financial success and high earnings are achieved by deploying capital, not solely by being a high-paid employee.
"the highest paid people and the most financially successful people in the country are not high paid workers it's people that know how to deploy their Capital"
Pending
Wealth is built by utilizing capital to earn a share of profits.
"the way you become wealthy is by using your Capital that way you can earn a piece of profits"
Pending
Company executives have a fiduciary duty to shareholders, prioritizing profit maximization over employee compensation.
"the executives corporate duty is not to the employees it's to the shareholders it's to these people so the number one goal of the people that's running the company is to drive this the profit higher it's not to pay the employees the maximum amount possible it's to drive up the profit"
Pending
A primary reason for people being broke is spending excessively on items to appear wealthy.
"the number one reason why so many people are broke today is because they're spending all of their money trying to look rich"
Pending
Avoid financing anything that doesn't generate income; if you can't afford it with cash, you can't afford it.
"if it does not put any money in your pocket you should not be financing it period if you don't have the money to buy it in full in cash you can't afford it yet"
Pending
The debt snowball strategy involves paying off the smallest debts first, regardless of interest rates, to gain psychological wins.
"the debt snowball strategy is the strategy that Dave Ramsey talks about all the time what this says is you are going to list your debts not by the interest rate that you're paying but by the size of the debt and what you're going to do here is you're going to pay off the smallest debt first and then go to the next smallest and then the next smallest the whole idea behind this is you're going to ignore the interest rates and you're going to pay off debts in a way where you can pay off the smallest balance first that way you can get the small wins"
Pending
The debt avalanche strategy prioritizes paying off debts with the highest interest rates first to minimize overall interest paid.
"here you're going to organize your debts based off of the interest rates and then you're going to pay pay off the highest interest rate debt first because that's the debt that's costing you the most money"
Pending
Making bi-weekly debt payments instead of monthly can significantly reduce the payoff time and total interest paid, saving tens of thousands of dollars and a year of payments.
"instead of sending $500 a month I want you to send in $250 every two weeks so now you're going to send in bi-weekly payments and this is essentially going to end up being the same you're sending in $250 every 2 weeks or $500 over the course of every 4 weeks but now you're not going to pay off your debt in 112 months you're going to pay off your debt in just 95 months and now you're going to pay the same $30,000 of your principal balance which is what you owe but in the interest side of things instead of paying 25,800 you're only going to pay $21,200 so you're going to save over $44,500 in interest and you're going to save another year of paying off this credit card bill"
Pending
While cutting expenses is helpful for debt reduction, increasing income offers unlimited potential for generating more cash to accelerate debt payoff and wealth building, requiring financial discipline to manage funds effectively.
"the fastest way to pay down your debt is not just by following some of these hacks is by getting more cash and the simplest and quickest way to get some more cash is to cut back some of your expenses but at the end of the day there's a limit to how much you can cut your expenses there's a limit to how much you can squeeze pennies out of yourself but there's no limit to how much money you can earn so what I want you to do is first you got to have the financial discipline of knowing how to live below your means because that's the discipline you need need to understand how to manage your money if you don't have that discipline it doesn't matter if you're making $100,000 a year or $10 million a year if you don't know how to manage the money you have you will never be able to build wealth but once you know how to do that now I want you to think a little bit bigger how can you expand the high how can you grow the amount of money that you're making because there's no limit to how much money that you can earn"
Pending
Financial discipline in controlling spending is essential for building wealth and paying off debt.
"if you do not have the financial discipline to understand how to control your spending you will never have the opportunity to build wealth if you want to be able to pay down your debt and be able to build your wealth you need to have the financial discipline of knowing what you can buy"
Pending
A rule of thumb for affordability: if you cannot buy five of an item, you cannot afford even one.
"if you can't buy five of them you can't afford one of them"
Pending
Saving money in banks leads to a loss of purchasing power due to inflation being higher than interest earned, effectively making one poorer.
"your savings are losing value effectively making you poorer each and every day just by saving your money because inflation is way higher than what interest your bank is paying you"
Pending
Paper dollars fail as a store of value because their worth diminishes over time, unlike traditional stores of value.
"money at its core definition is supposed to be some sort of store of value so you earn $50,000 because of this labor that you put in and the money that you have is supposed to store this $50,000 but our paper dollars don't do that"
Pending
To preserve or grow wealth, it's crucial to own assets, as simply holding cash or liabilities leads to a decrease in purchasing power due to inflation.
"if you don't invest that money if you just own liabilities if you just stack cash well that cash is going to make you poorer each and every day because the value of your dollars are dropping while the price of everything around you keeps getting more expensive which is why if you want to at least preserve the value of your money or if you want to grow the money you have you need to own assets"
Pending
Building wealth involves owning assets and avoiding the mistakes that led to financial problems, like accumulating debt through poor spending habits.
"the way you build wealth is by owning the assets and the fifth and final step to really pan down this debt as fast as possible is to not make the same mistakes that got you into this financial mess in the first place"
Pending