The System is Keeping You Poor - Here’s the Blueprint to Break Free

"Dave Rams is going to tell you to do something called the snowball method the smallest first to the biggest because you're building momentum right right uh e financial advisor may tell you the opposite do the debt Avalanche which is now pay the highest interest rate first and then go down because now you're going to pay off the most interest first so it costs you the most money the long term the reason why Dave Ramsey Recomends the snowball method is because psychologically when you get those small wins of paying something off you feel like you're winning and you can pay it off faster yeah a advisor is going to look at the math and say hey look these numbers are telling me that pay off the higher interest rate first because it's going to save you the most money over the long term which one's right again I'm not going to say which one do what's best for you because I know if I was in a situation I'm not I like the idea of paying down the heavy interest rate first because that's how my brain works I don't need the small wins like that I can work for the long term I think you know the entrepreneurial mindset where you know I know how my mind works so I understand myself and this is just honestly being open and honest with yourself if you can't stay true with it then do the snowball it does not matter screw paint it off for a few months early just get it away and paay off as fast as possible cut out cut the financial bleeding and have a $2,000 base"

"so you want to save your money for three reasons and three reasons only save your money for an emergency save your money for a big purchase if you want to buy a car you want to buy a house you want to buy a nice watch whatever you want to buy and need cash in order to do that and then three save your money for an investment if you're not saving your money for one of these three reasons you're saving your money the wrong way and it is making you poorer by saving that money"

"one of the simplest things you can do is follow something like percentage my 7551 plan which means for every dollar that you earn 75 cents is the maximum that you can spend 15 cents is the minimum that you invest and 10 cents is the minimum that you save and this never changes with your income the only thing that you would ever change is after after you hit that savings goal for your emergency savings you don't keep saving your money for the Emergency because you built that whatever months you want you put that towards your Investments yes and now whether you're making 40 Grand 400 Grand 4 million 40 million you just keep following the same thing and you're living below your means and now you're constantly putting money aside for Investments"

"if you don't want to be involved with your money you don't want to be hey day-to-day investing or paying attention to the markets you hate that idea just passively invest it right put it into lowc cost ETFs index funds and don't even worry about it and let it do its thing you don't change it whether the Market's up or down"

"buy now pay later with the last couple of years is arguably the fastest growing sector in fintech they're crushing it they're crushing it I have not invested any money into buying on pay later apps because I don't believe in it however it's putting more people in the debt kind of the way that they work is you can buy something now and worry about the price later now the pitch to Consumers to people is well you don't have to pay any interest kind of like the housing market back in the day right it Rhymes it rhymes history Rhymes right but the whole idea that they say you don't got to pay any interest just pay it off for say 12 months or 6 months which doesn't seem like a bad idea why would I want to pay $1,000 for a laptop today if I could just pay it off in installments and not paying interest for the next 12 months well if that's the case why is it such a fast growing industry I mean no one's going to invest billions of dollars into something if they're not going to see any sort of financial return I mean they got to the most expensive kind of money is free money so if they're giving you money for free how are they going to make money from it well let where we dig a little bit deeper if you don't get past your if you don't pay it in your 12 months then what so that's the first part if you don't pay it off now you get slapped with a very very Hefty Hefty fine a very very Hefty fee where now you're paying a massive interest rate essentially like a credit card just acting like a credit card it's the same concept where you get a little bit of a grace period but the second aspect is if you want to buy a laptop for $1,000 and you need $1,000 to buy it well you got to have $1,000 but if you don't have to pay for it noway a month yeah you still have $1,000 in your bank account maybe 900 and now what happens I can go buy more stuff for 100 bucks a month that's $1,000 more and more and more so it allows people to spend even more to lock in all the stuff so you have a whole bunch of stuff and all your money is going out to pay for the stuff that you bought yesterday a year ago now a year ago and then if you can't pay it off in time because that's ultimately man you know their goal if you can't pay it off in time now you get slapped with all that interest all these fees and now you're the one that's got to pay it off"

"well then what happened towards the end of uh 2021 into 2022 was the economy opened back up people started spending you wanted to go out and you know this pent up demand you want to start traveling you want to eat out again you want to have fun again fine but then we were also hit with inflation everything is so expensive now you've been waiting to travel you've been waiting to eat out you've been waiting to do all this stuff so much more expensive so now what do you do well I don't got any credit card debt let me go put it on my credit card and so over the last number of months we have seen the fastest growth of credit card debt in the history on of time"

"the simple math is if your mortgage is costing you say 5% a year and you can get a 8% return on your investment you can invest your money get a better return pay off your mortgage and have some money in your pocket it's a no-brainer so if you can invest your money get a better return why would you not do that well because investing comes with risk versus paying after mortgage does not because when you pay off your mortgage you get a guaranteed 5% return on your money because now if you paid off a year early you get a guaranteed 5% return versus when you invest your money it comes with risk might go up might go down might go up might go down and so now the question again is what type of Life do you want to live do you want to say you know what I just don't want to have to worry about my mortgage payment I just want to be financially free never have to stress about money and just be okay then pay down the mortgage because now once you pay down the mortgage your biggest expense is gone you own your house free and clear you still got to pay property taxes but at least now the biggest expense is gone and you're going to breathe so much easier when you don't have a mortgage to pay but if you say you know what just breathe I want to live big I want to have the nice stuff I want to have the big things I want to be flashy nothing wrong with that like you I want to have it all okay that's fine then you don't want to be trying to get a 5% return you want to invest this money in the markets you want to invest it in your business you want to invest this in your education you want to invest this in yourself because now you can get a much better return is it riskier absolutely but your mindset is somewhere else right you want to get a different type of return and this is why you're investing into the things that can give you a better return because that's what you want right but you just have to understand that it comes with risk and if you're not comfortable with that then do the first"

"one of the simplest things to do is now to understand the difference between being able to buy something and being able to afford something and one of the things that I like to say is just follow my rule of five if you can't buy five of them you can't afford one of them the houses are expensive though well houses are an exception different so we're talking our liabilities you want to buy a Gucci belt you want to buy a $200 Gucci belt fine can't buy five don't buy one you can't buy five don't buy one house is different house is different house is the is the one exception here where you know when it comes to your liabilities that's the only liability that would says okay to finance uh because everything else you know your Gucci belts your clothes your vacations you should not be financing that because it's not putting any money in your pocket and that's a clear liability you don't want to be financing that stuff right right"

"if now you understand how to live below your means you understand how to put your money to work if you want to put fuel on the fire you just got to earn more money now if you earn $100,000 you earn a million dollars you earn whatever you earn more money now you know how to put this money through your system through your funnel whether it's 75 15 10 or whatever else you know how to take this extra money put it to work that way you have more money to invest more money to save more money to live your life but the key is you don't want to 100% increase your lifestyle to match your income you want to increase your income with your Investments and keep expenses the same keep it ideally now you can you know marginally increase your expenses but the key is you want to be increasing your income and your ments way more"

"if you are an employee you don't want to start a business you don't want to start a side hustle fine nothing wrong with that there's nothing wrong with being an employee you just have to understand you but that means now how can you earn more money if you like your job look for ways to get a raise to get a promotion see how you can get a bonus just be open with your boss say hey look I want to be able to contribute more I want to earn more money what can I do most people are going to be very open and honest say hey I would like you to T on this this and this do this and then we will help raise your salary maybe if you don't like a job you're go and get a certificate you're go and do something else"

"I hear from some of these guys that are making 130 150,000 cuz they are Engineers or they're lawyers or they're whatever and they're carrying seven8 $10,000 of credit card debt on their accounts because you know they want to go get the bottle service they want to go on the vacation they want to go do these things that they see their friends doing they see other people doing they say I'm making money I can do that too"