March 14, 2025 • 17 mins
The wealthiest people think about money differently—and so should you. In this episode, I’m sharing the exact money rules that transformed my mindset and helped me scale a multi-million-dollar business. These strategies will shift how you think about money, wealth-building, and financial freedom. If you’re ready to understand the 10 money rules that separate the top 1% from everyone else, this episode is for you.
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Episode Transcript
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S1 (00:00):
Welcome to business and the podcast for people making it
all happen. Running a successful business completely takes over your life,
but I'm a believer that there is still room for
some ands like health, wealth, beauty, and maybe even some fashion.
On this podcast, I'll share with you what's working for
scaling my nine figure business while keeping you up to
date on the latest trends, news and fun finds. This
(00:23):
is a place for business and let's dive in. Welcome
back to business and I have learned so many things
from being around wealthy people, and I've just accumulated this
list of all of these things that I've learned over
the years because I pay attention and I watch and
I see how they think about money. I watch how
easy they make it sound and really confront. Why don't
(00:45):
I feel this way about money? Why is this hard
for me? Why am I not able to make more money?
And I go through this cycle, and it's been something
that has evolved over the last two decades. I feel
like I started being around wealthy people in my early
teens and really paying attention to how they thought about money.
And my fascination and my curiosity peaked back then. So
(01:07):
these are the things that I've witnessed, the things that
I've observed that wealthy people do. The top 1% do,
and they do them consistently, and they are relentless about it,
and they almost just make these things habit. I oftentimes
don't even think that they would be able to articulate
that they do these things. They just have a different mindset,
and they've learned it from other wealthy people that they've
(01:30):
been around. These are my ten rules of money. To
be able to help you manage your money. Create income
like the top 1%. I hope you enjoy. My first
rule of money is that you have to ruin yourself
every single day. You need to be doing this one
thing if you want to manage your money like the
top 1%. Log in to your bank account. Instead of
(01:51):
you diving into social media, looking at your emails, kissing
on your significant other, open your bank account every single
morning back when I didn't have very much money and
I didn't have a lot of financial literacy, I would
not make money. My priority. And the way that you know,
that money is not your priority is if you never
look at your money. Your money needs attention. If you
have attention on your money, there is no possible way
(02:13):
for it not to improve, for you not to do
something different when you are looking at your money consistently.
So when you wake up in the morning, remind yourself
that you have a financial goal. If you want to
make more money, you wouldn't be watching this video if
you didn't. You have to pay attention to how much
money you have. If you don't know this, you aren't
really taking your financial goals seriously. When I wake up
in the morning at 530, the first thing that I
(02:34):
do is log into my bank account. I open up
the app boop.
S2 (02:37):
Boop boop boop boop.
S1 (02:38):
Type in my password. Maybe when I'm sophisticated, my face works.
When it's like smashed against the pillow and my bank
account opens and I remember I got to go make
more money. I'm looking at what increased yesterday, what decreased,
and how can I make making money a intention. If
you're never going to look at your bank account, I
can promise you you're never going to make more money.
What you measure Improves, so start measuring your money daily.
(03:01):
My second rule of money is that you have to
be fearless with your money decisions. Taking immediate action with
your money is the mindset change that will make you rich.
Instead of just checking your bank account or being frustrated
and overwhelmed potentially, that you don't have the money that
you want to have. How are you taking action on
this data? What are you doing in the next 24
(03:23):
hour period to increase your income? If you do not
have something that you are doing today where you are
taking action right now to increase your income, you're never
going to increase your income. You're going to get so
overwhelmed every single time you look at your bank account
that you're not going to do anything, and you're going
to wake up in ten years from now and be like,
I'm making the same money. Maybe there's a little bit
of an adjustment for inflation, but you never figured out
(03:45):
the game of adding valuable skills because you took action today.
Taking more action could sound like, I'm going to go
have a conversation with my boss in order to understand
what I would need to do in order to earn
more money at my job. The action that you take
is directly tied to what is the next thing that
has to happen in order for me to know how
I make more money, and just by initiating the conversation,
(04:07):
just by watching a video, just by reading a book,
you are moving towards taking control of your financial situation.
But you just sitting there looking at it, seeing it,
not understanding how you impact it, it's going to keep
you stuck. The top 1% rearrange their entire days to
be entirely focused on making more money. That is what
they do every day, every meeting that they take, every
call that they take, every action that they take is
(04:29):
geared towards optimizing their ability to make more money, how
quickly they take a shower, what they think about when
they're in the shower, how is everything organized in their
lives so that they can be as efficient as possible
to impact the things that matter most to them, which
is how do I drive more value across the things
that I'm responsible for, to have that value be exchanged
with me in money? My third rule of money is
(04:50):
to use the tools that the system has offered you,
because that's what the rich are doing. Debt is a
beautiful thing as long as it's not credit card debt.
The rich use debt in order to make money. If
you have this thought process that the word debt is
a bad thing, it's because you are using debt incorrectly.
(05:11):
What you do is you take the money that you have,
that is your earned income, and you add debt to
your earned income to be able to buy something that
you couldn't afford with just your earned income. For instance,
with real estate, if you wanted to buy $1 million home,
you would use $200,000 of your earned income and take
(05:33):
on $800,000 of debt to get you access to $1
million deal. So your goal should be to make your
earned income as high as possible, go from 200,000 to 400,000,
which would allow you to get more debt to be
able to take on bigger deals. This whole process is
how wealthy people think about their earned income. They want
(05:53):
to take as much money that they actually earn so
that they have more access to bigger deals, to greater
opportunities because they're able to get more debt due to
having higher earned income. And then they can go to
the market and get a great investment that pays them.
This whole cycle is what the 1% understands that everybody
else doesn't. So if you don't currently understand the difference
(06:14):
between good debt and bad debt, go ChatGPT it right now.
And that would be you taking action today to increase
your income. My fourth money rule is to shop like
the rich. Everything in life is a sale and a negotiation.
The wealthiest people that I know negotiate everything. Everything is
up for negotiation. They understand that price is entirely made up,
(06:37):
and so they negotiate everything. And the way that they
negotiate is they do research and they do due diligence,
and they understand if I'm about to buy this car,
I'm going to look at the 20 other cars that
are like this so that I can actually negotiate the
lowest price for the purchase of this car. When I'm
going to buy anything, I'm going to think of myself
as a negotiator. Now, people who are broke tend to
think that prices are fixed and that they don't move,
(06:59):
but they do. So if you want to start earning
like the rich, a mindset shift for you to make
today is to start shopping like the rich, because wealthy
people use other reference points in order to make their
point for why something has an established value in their mind,
and they sell everybody else on what their established value is.
The store's created value for something. But as a customer,
(07:20):
if I find that the value is something different, there
might be room for us to move that price. So
just remember, money is made up. It isn't fixed. It's
something that you can play with and wealthy people constantly
play with it. My fifth money rule is to stick
to one thing until you are so rich that it
doesn't matter if you do not have a $10 million
(07:40):
net worth, you shouldn't be changing up your earning strategy.
I cannot stand this conversation about multi-passionate people. It's cool
that your multi-passionate, but that does not mean you create
a career around being multi-passionate. You don't do five things
in your career. Get frickin good. like great at one thing.
And you know that you're great when you've created a
(08:01):
business or create an opportunity where you're able to have
a $10 million net worth until you've hit that target,
do not start diversifying. Do not start thinking you have
to learn new skills. Groove in the one thing and
make that your goal. Let's say you're a dentist. Until
your dental practices are generating $10 million a year in
adjusted production and you likely have three locations, you should
(08:23):
not be starting to learn how to be a real
estate investor. Become a great dentist first, one of the
greatest lies people are told, and that we somehow normalized,
is that diversity is a great thing. It is a
crock of shit to become known. For one thing, once
you're known for that and you have money that you
are able to blow doing other things and you're at
a different phase of life, all of a sudden you
(08:44):
can become multi-passionate and start doing a whole bunch of
different things with your time until you're at $10 million.
Keep the main thing the main thing, especially when you're young,
you need to go all in on one thing because
that's what you can control and become an expert in.
That brings us to my sixth rule of money, which
(09:04):
is to learn from rich people's relationships. This may be surprising,
but the wealthiest people actually view relationships differently than that
of non-wealthy people. Some of the most important relationships that
you will cultivate are relationships with lawyers, with bankers, with accountants,
with people who understand money and who will guide you
through this process of becoming wealthy. So you need to
(09:26):
start taking your banking relationships seriously. Wealthy people focus on
finding only the best of the best people. If a
wealthy person walks into Chase Bank, they want the most
senior person on their account. Do you even know who's
on your account at Chase Bank? I know the first
time I ever opened up a bank account. It was
during college and I opened a college account, which saved
(09:46):
me like $25 a year because it was a college account.
And all of a sudden I had hundreds of thousands
of dollars in this account. I didn't know who my
banker was. None of it was protected. I only had
250,000 protected. If something did go wrong with the bank,
I just had no idea what was going on until
I was introduced to a real account manager, somebody who
(10:08):
could actually help me with my financial targets. And I
moved away from Chase to go on over to JP
Morgan because they were serious about my money goals. But
I set that tone. I could have created a different
outcome with that Chase relationship earlier on. I just didn't
know how to do that. When I was in college,
I didn't know what questions I should be asking, such
as what options do you have for me to put
my money in? Do you have any additional ways for
(10:30):
me to make a couple more basis points on the
money that I have sitting in this bank? They might
look at you and just blink, because they're not prepared
for most people to ask these questions. And you should
tell them, hey, one day I'm going to be a
really important person around here. I want to make sure
that I'm banking with the right person and that you're
going to take me seriously because I take my financial
goals seriously. And if you currently have a banking relationship,
you should go in person. You should meet that person
(10:52):
and you should have this exact conversation with them. Make
them take you seriously. Make them walk you through what
you don't know about banking with them. You should be
visiting them at least once a quarter, sending them thank
you cards and holiday cards and investing in the relationship.
Next up is rule number seven, which is to focus
on you until you have $100,000 in your bank account,
(11:13):
you should be spending any extra money you have on
reinvesting into your own education. There is nothing more important
than investing in yourself. In order to get to where
you want to go, you have to gain skills that
are required to get there. You are not going to
wake up magically one day and have the money that
you want, without you learning more about money. There is
(11:35):
no fairy godmother who's just going to sprinkle wealth over you.
It is very unlikely that you're going to win the lottery,
so take control of the things that you can. What
you can control is your education and investing in yourself.
Not on a spa day, not really on a sweet treat.
I'm talking about investing in yourself through education is the
(11:55):
only way that you can make sure that you take
control of your financial future. Investing yourself means that you
are investing your money in books, courses, and trainings. I
think of spending money differently than investing money in an investment.
I am expecting a return. If I read a book,
I'm expecting that there is a return, not just on
(12:15):
the $12 I might have paid, but the time that
I invested in listening, learning, and applying that information. You're
watching this YouTube video right now. You should be expecting
that the investment of your time in this video, up
until this point, is giving you something that you can
turn around and go do something with. If I haven't
taught you anything and you can't implement what I'm talking about,
(12:36):
this would be a bad investment of your time. So
you have to differentiate. What am I investing in versus
what am I spending money on? The eighth money rule
is one of my favorites. This is the one question
you need to ask yourself before buying anything. If you
are spending your money on something that you know you
don't need, but you just want, This is how you
make those spending decisions. If you cannot buy it twice
(12:59):
in cash and take your passive income to be able
to afford it, you cannot afford it. And that's okay.
These are just rules to live by. Once you know
what you can or can't afford, all of a sudden
you're like, shoot, I got to get back to work,
make more money because I want to go buy this thing.
It should feel that simple, and it really should be
that easy for you to start creating on your financial future.
(13:20):
Let's say I go to the Chanel store. They have
lots of beautiful things that are very expensive, and I
remember being shocked the first time that I looked at
a price tag of a Chanel bag in the store.
In order to buy a Chanel bag, you are at
least spending $5,000. And I was a little down on
myself thinking, how on earth am I going to be
able to spend $5,000? Well, if I only had $8,000,
do I now have enough money to spend on a
(13:43):
Chanel bag? Well, if I had to work through my
income in order to get the $8,000 so that I
could spend $5,000 on the bag, I do not have
enough money to be able to afford this bag, but
if I had $10,000, I would be filling out one criteria,
but if I'm using earned income to buy it, then
I still don't actually have the ability to afford it
because I have to go work my tail off in
(14:05):
order to have that money. And then once I am
able to buy two of them, I still don't have
enough money to truly afford this bag. You need rules.
So this next rule is challenging, but it is important
and will give you financial security for the rest of
your life. Passive income how much earned income would you
need to have invested in order for it to spit
(14:27):
off passively $10,000, you would have to have $200,000 of
income inside your bank account, which means you likely generate
$400,000 of income a year. Depending on your tax bracket.
400 K you get 200 K in your bank account,
you invest 200 K in some investment vehicle. It spits
(14:48):
off a 5% return, meaning you now have $10,000. $10,000
of passive income would allow you to buy a $5,000 bag.
That is when you know that you can afford the bag.
But until you can do that, you can't afford the bag,
which means that you need to go learn. How do
I make more money so I can afford the bag?
(15:08):
It's a very simple equation. My ninth money rule is
classic money advice. You should have an emergency fund. This
is fairly standard, but some people don't really agree with this.
And my business partner is one of those people. Grant
Cardone is not a believer of emergency fund, and it's
one of the fun things that we kind of have
this little bit of a disagreement about. His philosophy that
I do understand is if you have an emergency fund,
(15:30):
you are not going to work as hard as if
you didn't have the emergency fund. If there's always a
threat in the environment, you're going to work your tail
off because you have to. There's no other choice. When
you start to build an emergency fund, all of a
sudden you start to get a little bit more comfortable.
You stop investing yourself the way that you once did.
So from a psychological standpoint, I like the idea of
(15:52):
not having an emergency fund, but from a practical standpoint,
being able to build up six months of cash reserves
in your bank account or in your business is vital
to know that you actually do have some level of
financial security. You shouldn't always be completely broke without any
cash on hand to be able to pay for things
like medical emergencies or crisis. Having those funds and having
(16:15):
access to those funds is important. And if there is
ever an economic downturn, having cash, especially when nobody else
has cash, allows you access to deals that nobody else
is going to have access to. So I am a
believer of having six months of an emergency fund, but
pretending like you don't. And if you can keep this
balance of still working your tail off, acting like you're
(16:36):
broke even when you do have six months, that is magic.
You want to find a balance between saving for an
emergency and investing in yourself and your future. Because if
you use six months of your living expenses as your target,
you now can start getting clear as to how much
money you need to make in order to make that happen,
because if your living expenses are low, that means you
(16:59):
have more money to be able to invest. If you
make your living expenses high, all of a sudden you
have less to invest because you have to keep up
with how much money you're spending on your living expenses.
Living expenses low. Investment high. The top 1% of rich
people have gamified this mindset of money, and that's what
you're missing. If you enjoyed this podcast, you are going
(17:20):
to definitely not want to miss out on my new newsletter.
It just dropped. I just started creating this content and
I am obsessed. Every single week in your inbox, I'm
going to send you business. And which is exactly what
it sounds like. How do you fit business and all
of the other things in your life so that you
are up to speed on fashion, beauty, wellness, all things
(17:43):
that really matter. If you want to subscribe and get
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Welcome to business and the podcast for people making it
all happen. Running a successful business completely takes over your life,
but I'm a believer that there is still room for
some ands like health, wealth, beauty, and maybe even some fashion.
On this podcast, I'll share with you what's working for
scaling my nine figure business while keeping you up to
date on the latest trends, news and fun finds. This
(00:23):
is a place for business and let's dive in. Welcome
back to business and I have learned so many things
from being around wealthy people, and I've just accumulated this
list of all of these things that I've learned over
the years because I pay attention and I watch and
I see how they think about money. I watch how
easy they make it sound and really confront. Why don't
(00:45):
I feel this way about money? Why is this hard
for me? Why am I not able to make more money?
And I go through this cycle, and it's been something
that has evolved over the last two decades. I feel
like I started being around wealthy people in my early
teens and really paying attention to how they thought about money.
And my fascination and my curiosity peaked back then. So
(01:07):
these are the things that I've witnessed, the things that
I've observed that wealthy people do. The top 1% do,
and they do them consistently, and they are relentless about it,
and they almost just make these things habit. I oftentimes
don't even think that they would be able to articulate
that they do these things. They just have a different mindset,
and they've learned it from other wealthy people that they've
(01:30):
been around. These are my ten rules of money. To
be able to help you manage your money. Create income
like the top 1%. I hope you enjoy. My first
rule of money is that you have to ruin yourself
every single day. You need to be doing this one
thing if you want to manage your money like the
top 1%. Log in to your bank account. Instead of
(01:51):
you diving into social media, looking at your emails, kissing
on your significant other, open your bank account every single
morning back when I didn't have very much money and
I didn't have a lot of financial literacy, I would
not make money. My priority. And the way that you know,
that money is not your priority is if you never
look at your money. Your money needs attention. If you
have attention on your money, there is no possible way
(02:13):
for it not to improve, for you not to do
something different when you are looking at your money consistently.
So when you wake up in the morning, remind yourself
that you have a financial goal. If you want to
make more money, you wouldn't be watching this video if
you didn't. You have to pay attention to how much
money you have. If you don't know this, you aren't
really taking your financial goals seriously. When I wake up
in the morning at 530, the first thing that I
(02:34):
do is log into my bank account. I open up
the app boop.
S2 (02:37):
Boop boop boop boop.
S1 (02:38):
Type in my password. Maybe when I'm sophisticated, my face works.
When it's like smashed against the pillow and my bank
account opens and I remember I got to go make
more money. I'm looking at what increased yesterday, what decreased,
and how can I make making money a intention. If
you're never going to look at your bank account, I
can promise you you're never going to make more money.
What you measure Improves, so start measuring your money daily.
(03:01):
My second rule of money is that you have to
be fearless with your money decisions. Taking immediate action with
your money is the mindset change that will make you rich.
Instead of just checking your bank account or being frustrated
and overwhelmed potentially, that you don't have the money that
you want to have. How are you taking action on
this data? What are you doing in the next 24
(03:23):
hour period to increase your income? If you do not
have something that you are doing today where you are
taking action right now to increase your income, you're never
going to increase your income. You're going to get so
overwhelmed every single time you look at your bank account
that you're not going to do anything, and you're going
to wake up in ten years from now and be like,
I'm making the same money. Maybe there's a little bit
of an adjustment for inflation, but you never figured out
(03:45):
the game of adding valuable skills because you took action today.
Taking more action could sound like, I'm going to go
have a conversation with my boss in order to understand
what I would need to do in order to earn
more money at my job. The action that you take
is directly tied to what is the next thing that
has to happen in order for me to know how
I make more money, and just by initiating the conversation,
(04:07):
just by watching a video, just by reading a book,
you are moving towards taking control of your financial situation.
But you just sitting there looking at it, seeing it,
not understanding how you impact it, it's going to keep
you stuck. The top 1% rearrange their entire days to
be entirely focused on making more money. That is what
they do every day, every meeting that they take, every
call that they take, every action that they take is
(04:29):
geared towards optimizing their ability to make more money, how
quickly they take a shower, what they think about when
they're in the shower, how is everything organized in their
lives so that they can be as efficient as possible
to impact the things that matter most to them, which
is how do I drive more value across the things
that I'm responsible for, to have that value be exchanged
with me in money? My third rule of money is
(04:50):
to use the tools that the system has offered you,
because that's what the rich are doing. Debt is a
beautiful thing as long as it's not credit card debt.
The rich use debt in order to make money. If
you have this thought process that the word debt is
a bad thing, it's because you are using debt incorrectly.
(05:11):
What you do is you take the money that you have,
that is your earned income, and you add debt to
your earned income to be able to buy something that
you couldn't afford with just your earned income. For instance,
with real estate, if you wanted to buy $1 million home,
you would use $200,000 of your earned income and take
(05:33):
on $800,000 of debt to get you access to $1
million deal. So your goal should be to make your
earned income as high as possible, go from 200,000 to 400,000,
which would allow you to get more debt to be
able to take on bigger deals. This whole process is
how wealthy people think about their earned income. They want
(05:53):
to take as much money that they actually earn so
that they have more access to bigger deals, to greater
opportunities because they're able to get more debt due to
having higher earned income. And then they can go to
the market and get a great investment that pays them.
This whole cycle is what the 1% understands that everybody
else doesn't. So if you don't currently understand the difference
(06:14):
between good debt and bad debt, go ChatGPT it right now.
And that would be you taking action today to increase
your income. My fourth money rule is to shop like
the rich. Everything in life is a sale and a negotiation.
The wealthiest people that I know negotiate everything. Everything is
up for negotiation. They understand that price is entirely made up,
(06:37):
and so they negotiate everything. And the way that they
negotiate is they do research and they do due diligence,
and they understand if I'm about to buy this car,
I'm going to look at the 20 other cars that
are like this so that I can actually negotiate the
lowest price for the purchase of this car. When I'm
going to buy anything, I'm going to think of myself
as a negotiator. Now, people who are broke tend to
think that prices are fixed and that they don't move,
(06:59):
but they do. So if you want to start earning
like the rich, a mindset shift for you to make
today is to start shopping like the rich, because wealthy
people use other reference points in order to make their
point for why something has an established value in their mind,
and they sell everybody else on what their established value is.
The store's created value for something. But as a customer,
(07:20):
if I find that the value is something different, there
might be room for us to move that price. So
just remember, money is made up. It isn't fixed. It's
something that you can play with and wealthy people constantly
play with it. My fifth money rule is to stick
to one thing until you are so rich that it
doesn't matter if you do not have a $10 million
(07:40):
net worth, you shouldn't be changing up your earning strategy.
I cannot stand this conversation about multi-passionate people. It's cool
that your multi-passionate, but that does not mean you create
a career around being multi-passionate. You don't do five things
in your career. Get frickin good. like great at one thing.
And you know that you're great when you've created a
(08:01):
business or create an opportunity where you're able to have
a $10 million net worth until you've hit that target,
do not start diversifying. Do not start thinking you have
to learn new skills. Groove in the one thing and
make that your goal. Let's say you're a dentist. Until
your dental practices are generating $10 million a year in
adjusted production and you likely have three locations, you should
(08:23):
not be starting to learn how to be a real
estate investor. Become a great dentist first, one of the
greatest lies people are told, and that we somehow normalized,
is that diversity is a great thing. It is a
crock of shit to become known. For one thing, once
you're known for that and you have money that you
are able to blow doing other things and you're at
a different phase of life, all of a sudden you
(08:44):
can become multi-passionate and start doing a whole bunch of
different things with your time until you're at $10 million.
Keep the main thing the main thing, especially when you're young,
you need to go all in on one thing because
that's what you can control and become an expert in.
That brings us to my sixth rule of money, which
(09:04):
is to learn from rich people's relationships. This may be surprising,
but the wealthiest people actually view relationships differently than that
of non-wealthy people. Some of the most important relationships that
you will cultivate are relationships with lawyers, with bankers, with accountants,
with people who understand money and who will guide you
through this process of becoming wealthy. So you need to
(09:26):
start taking your banking relationships seriously. Wealthy people focus on
finding only the best of the best people. If a
wealthy person walks into Chase Bank, they want the most
senior person on their account. Do you even know who's
on your account at Chase Bank? I know the first
time I ever opened up a bank account. It was
during college and I opened a college account, which saved
(09:46):
me like $25 a year because it was a college account.
And all of a sudden I had hundreds of thousands
of dollars in this account. I didn't know who my
banker was. None of it was protected. I only had
250,000 protected. If something did go wrong with the bank,
I just had no idea what was going on until
I was introduced to a real account manager, somebody who
(10:08):
could actually help me with my financial targets. And I
moved away from Chase to go on over to JP
Morgan because they were serious about my money goals. But
I set that tone. I could have created a different
outcome with that Chase relationship earlier on. I just didn't
know how to do that. When I was in college,
I didn't know what questions I should be asking, such
as what options do you have for me to put
my money in? Do you have any additional ways for
(10:30):
me to make a couple more basis points on the
money that I have sitting in this bank? They might
look at you and just blink, because they're not prepared
for most people to ask these questions. And you should
tell them, hey, one day I'm going to be a
really important person around here. I want to make sure
that I'm banking with the right person and that you're
going to take me seriously because I take my financial
goals seriously. And if you currently have a banking relationship,
you should go in person. You should meet that person
(10:52):
and you should have this exact conversation with them. Make
them take you seriously. Make them walk you through what
you don't know about banking with them. You should be
visiting them at least once a quarter, sending them thank
you cards and holiday cards and investing in the relationship.
Next up is rule number seven, which is to focus
on you until you have $100,000 in your bank account,
(11:13):
you should be spending any extra money you have on
reinvesting into your own education. There is nothing more important
than investing in yourself. In order to get to where
you want to go, you have to gain skills that
are required to get there. You are not going to
wake up magically one day and have the money that
you want, without you learning more about money. There is
(11:35):
no fairy godmother who's just going to sprinkle wealth over you.
It is very unlikely that you're going to win the lottery,
so take control of the things that you can. What
you can control is your education and investing in yourself.
Not on a spa day, not really on a sweet treat.
I'm talking about investing in yourself through education is the
(11:55):
only way that you can make sure that you take
control of your financial future. Investing yourself means that you
are investing your money in books, courses, and trainings. I
think of spending money differently than investing money in an investment.
I am expecting a return. If I read a book,
I'm expecting that there is a return, not just on
(12:15):
the $12 I might have paid, but the time that
I invested in listening, learning, and applying that information. You're
watching this YouTube video right now. You should be expecting
that the investment of your time in this video, up
until this point, is giving you something that you can
turn around and go do something with. If I haven't
taught you anything and you can't implement what I'm talking about,
(12:36):
this would be a bad investment of your time. So
you have to differentiate. What am I investing in versus
what am I spending money on? The eighth money rule
is one of my favorites. This is the one question
you need to ask yourself before buying anything. If you
are spending your money on something that you know you
don't need, but you just want, This is how you
make those spending decisions. If you cannot buy it twice
(12:59):
in cash and take your passive income to be able
to afford it, you cannot afford it. And that's okay.
These are just rules to live by. Once you know
what you can or can't afford, all of a sudden
you're like, shoot, I got to get back to work,
make more money because I want to go buy this thing.
It should feel that simple, and it really should be
that easy for you to start creating on your financial future.
(13:20):
Let's say I go to the Chanel store. They have
lots of beautiful things that are very expensive, and I
remember being shocked the first time that I looked at
a price tag of a Chanel bag in the store.
In order to buy a Chanel bag, you are at
least spending $5,000. And I was a little down on
myself thinking, how on earth am I going to be
able to spend $5,000? Well, if I only had $8,000,
do I now have enough money to spend on a
(13:43):
Chanel bag? Well, if I had to work through my
income in order to get the $8,000 so that I
could spend $5,000 on the bag, I do not have
enough money to be able to afford this bag, but
if I had $10,000, I would be filling out one criteria,
but if I'm using earned income to buy it, then
I still don't actually have the ability to afford it
because I have to go work my tail off in
(14:05):
order to have that money. And then once I am
able to buy two of them, I still don't have
enough money to truly afford this bag. You need rules.
So this next rule is challenging, but it is important
and will give you financial security for the rest of
your life. Passive income how much earned income would you
need to have invested in order for it to spit
(14:27):
off passively $10,000, you would have to have $200,000 of
income inside your bank account, which means you likely generate
$400,000 of income a year. Depending on your tax bracket.
400 K you get 200 K in your bank account,
you invest 200 K in some investment vehicle. It spits
(14:48):
off a 5% return, meaning you now have $10,000. $10,000
of passive income would allow you to buy a $5,000 bag.
That is when you know that you can afford the bag.
But until you can do that, you can't afford the bag,
which means that you need to go learn. How do
I make more money so I can afford the bag?
(15:08):
It's a very simple equation. My ninth money rule is
classic money advice. You should have an emergency fund. This
is fairly standard, but some people don't really agree with this.
And my business partner is one of those people. Grant
Cardone is not a believer of emergency fund, and it's
one of the fun things that we kind of have
this little bit of a disagreement about. His philosophy that
I do understand is if you have an emergency fund,
(15:30):
you are not going to work as hard as if
you didn't have the emergency fund. If there's always a
threat in the environment, you're going to work your tail
off because you have to. There's no other choice. When
you start to build an emergency fund, all of a
sudden you start to get a little bit more comfortable.
You stop investing yourself the way that you once did.
So from a psychological standpoint, I like the idea of
(15:52):
not having an emergency fund, but from a practical standpoint,
being able to build up six months of cash reserves
in your bank account or in your business is vital
to know that you actually do have some level of
financial security. You shouldn't always be completely broke without any
cash on hand to be able to pay for things
like medical emergencies or crisis. Having those funds and having
(16:15):
access to those funds is important. And if there is
ever an economic downturn, having cash, especially when nobody else
has cash, allows you access to deals that nobody else
is going to have access to. So I am a
believer of having six months of an emergency fund, but
pretending like you don't. And if you can keep this
balance of still working your tail off, acting like you're
(16:36):
broke even when you do have six months, that is magic.
You want to find a balance between saving for an
emergency and investing in yourself and your future. Because if
you use six months of your living expenses as your target,
you now can start getting clear as to how much
money you need to make in order to make that happen,
because if your living expenses are low, that means you
(16:59):
have more money to be able to invest. If you
make your living expenses high, all of a sudden you
have less to invest because you have to keep up
with how much money you're spending on your living expenses.
Living expenses low. Investment high. The top 1% of rich
people have gamified this mindset of money, and that's what
you're missing. If you enjoyed this podcast, you are going
(17:20):
to definitely not want to miss out on my new newsletter.
It just dropped. I just started creating this content and
I am obsessed. Every single week in your inbox, I'm
going to send you business. And which is exactly what
it sounds like. How do you fit business and all
of the other things in your life so that you
are up to speed on fashion, beauty, wellness, all things
(17:43):
that really matter. If you want to subscribe and get
this special gift and weekly treat in your inbox, go
to Cartoon ventures.com/news.
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