March 24, 2025 • 19 mins
Have you ever wondered why some people seem to effortlessly attract wealth while others constantly struggle? The answer lies deeper than mere financial tactics – it's rooted in mindset and internal programming.
In this eye-opening exploration of wealth psychology, we unpack the concept of "wealth files" – those core beliefs and habits that distinguish financially successful people from everyone else. You'll discover how wealthy individuals see themselves as architects of their financial lives rather than victims of circumstance, and why this sense of agency makes all the difference. We examine how your relationship with money – including your ability to receive, promote your value, and admire rather than resent successful people – shapes your financial destiny.
Beyond mindset, we dive into practical strategies like shifting from time-based to results-based income, focusing on net worth rather than just paychecks, and the power of consistent saving coupled with compound interest. For aspiring entrepreneurs, we share inspiring stories of successful businesses started with minimal capital, proving you don't need substantial resources to begin your wealth-building journey. The $100 Startup approach emphasizes finding that sweet spot where your skills meet genuine market needs, then taking decisive action rather than endless planning.
Whether you're looking to transform your financial mindset, start a business, improve your personal money management, or build long-term wealth through investing, this episode provides a comprehensive roadmap. The path to financial freedom begins with understanding that success is 80% behavior and 20% knowledge – and having the courage to take that first step, no matter how small. Ready to rewrite your financial story?
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Episode Transcript
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Speaker 1 (00:00):
Have you ever noticed how some people just seem to
have this like natural flow withmoney?
Wealth just doesn't seem like aconstant uphill battle for them
.
Speaker 2 (00:08):
Yeah, it's like they have a different mindset.
Speaker 1 (00:11):
It really does make you wonder what makes that
difference Like, what is itabout their thinking?
Well, in this deep dive we'regoing to try to get to the
bottom of that.
Speaker 2 (00:20):
Absolutely.
We're going to unpack thosecore ideas and practical steps
that can really help you shifthow you think about building
wealth.
We've pulled some awesomeinsights from some key resources
, those fundamental principlesof a wealthy mindset.
We've got some actionablebusiness strategies, all
designed to help you find aclearer path towards financial
(00:41):
well-being.
Speaker 1 (00:42):
Yeah, totally.
And before we get too far, Iwant to make it clear this isn't
about some magic formula to getrich quick or anything.
Speaker 2 (00:48):
No, not at all.
Speaker 1 (00:49):
It's really about those fundamental shifts in how
you think and those concreteactions you can take to build a
solid foundation for lastingfinancial success.
Okay, let's dive right in.
Let's talk about the power ofmindset.
We'll start with some insightsfrom Secrets of the Millionaire
Mind.
Speaker 2 (01:06):
Okay, great.
So one of the most interestingconcepts in that book is the
idea of wealth files.
You can think of them as likeyour internal programming around
money, like those deep-seatedbelief and habits that really
distinguish the wealthy fromwell everyone else.
Speaker 1 (01:23):
It's realizing that sometimes the biggest obstacle
to building wealth is actuallyinternal, not external yeah,
that's fascinating, right, it'slike the operating system
running in the background ofyour financial life.
Huh, and one of the coreprograms for the wealthy is this
belief that they create theirlives, especially their
financial lives.
They feel in control ratherthan feeling like things just
(01:45):
happen to them.
Speaker 2 (01:46):
And that raises a really important question for
you when you think about yourown finances, do you generally
feel like you're the architect,like you're making deliberate
choices, or do you feel morelike you're just reacting to
whatever life throws your way?
Speaker 1 (01:59):
Right, because that sense of agency that's a huge
part of a wealthy mindset,absolutely, and that control
connects with another wealthfile.
Speaker 2 (02:06):
Yeah.
Speaker 1 (02:07):
Wealthy individuals are committed to being rich.
It's not just like, oh, that'dbe nice.
Speaker 2 (02:12):
Right.
Speaker 1 (02:12):
It's deeper than that .
It's a real dedication.
Speaker 2 (02:15):
Yeah, and think about it.
Achieving any big goal requiresthat level of commitment.
Right, right.
Wealth often takes consistenteffort.
You've got to overcome setbacks, you've got to stay focused on
the long term.
So that commitment, it's yourfuel.
Speaker 1 (02:31):
It is Okay.
This next one might be a littlecontroversial.
Rich people actually admireother rich and successful people
.
They're not jealous orresentful, they're inspired,
they want to learn.
Speaker 2 (02:42):
Yeah, that's a good point.
It really highlights the impactof your environment.
When you surround yourself withsuccessful people, it can
create a really positive,empowering atmosphere, and that
makes a huge difference in yourown belief that you can do it
too.
Speaker 1 (02:55):
Yeah, and the book mentions how negativity towards
wealth or wealthy people can bea real downer.
It can block you from achievingit yourself.
Speaker 2 (03:02):
It's like a subconscious barrier.
Speaker 1 (03:03):
Exactly so.
It's about shifting thatperspective.
Instead of envy, try tounderstand and learn from their
positive traits.
Speaker 2 (03:10):
Exactly, and this leads us to another key point
Wealthy people are willing topromote themselves and their
value.
Speaker 1 (03:18):
Ooh, this is a tricky one.
Speaker 2 (03:20):
Yeah, I know right, there's often this negative
feeling around self-promotion,like it's bragging or something.
Speaker 1 (03:25):
Totally.
You don't want to come off asarrogant.
Speaker 2 (03:26):
Right.
Speaker 1 (03:27):
But the book makes it clear.
It's about having theconfidence to show your worth,
the benefits you bring.
If you don't believe inyourself, how can you expect
others to?
Speaker 2 (03:36):
It's all about self-worth.
People with a wealthy mindsetknow their own value.
Speaker 1 (03:40):
That's so true.
And this brings us to anotherinteresting idea value.
That's so true, and this bringsus to another interesting idea.
Rich people are good atreceiving.
They can accept compliments,gifts, even financial
opportunities, yeah, and thebook contrasts that with people
struggling financially who oftenhave trouble receiving, maybe
feelings of unworthiness orguilt.
Speaker 2 (04:00):
That can come from deep-seated beliefs.
You know about money anddeservingness.
It's really important tochallenge thoseated beliefs you
know about money anddeservingness.
It's really important tochallenge those limiting beliefs
if you want to open yourself upto abundance.
Receiving is part of the flow.
It's the other side of givingvalue.
Speaker 1 (04:15):
It makes sense right Like give and take.
Speaker 2 (04:16):
Exactly.
Speaker 1 (04:17):
Okay, another wealth file.
Wealthy people choose to bepaid for results, not just for
their time.
This is a big shift from thetraditional salary or hourly
wage we're all used to.
Speaker 2 (04:28):
Right.
And if we look at the biggerpicture, time-based income kind
of limits how much you can earnright, there are only so many
hours in a day.
Result-based income, on theother hand, links your pay to
the value you create.
Speaker 1 (04:40):
Think about it Sales consulting, starting a business
Focusing on performance, canreally unlock some serious
growth.
Just trading time for money canmake you feel stuck.
Okay, here's another keydifference Shifting your focus
from just your work income tobuilding your net worth.
People struggling financiallyoften just focus on that
paycheck and daily expenses.
Speaker 2 (05:00):
And that creates a short-term view that makes it
harder to build long-term wealth.
The book really emphasizes that.
Speaker 1 (05:07):
Net worth, which is your assets minus your
liabilities, paints a muchclearer picture of your
financial health.
It's not just about what you'reearning right now.
Speaker 2 (05:18):
Focusing on net worth makes you think long-term about
accumulating assets andbuilding a solid financial base
term about accumulating assetsand building a solid financial
base.
Speaker 1 (05:29):
Okay, now, this might sound obvious, but the book
points out that rich peoplemanage their money well.
I know right, but it's a skillthat's often overlooked,
especially by those who haven'tachieved financial success yet.
Speaker 2 (05:36):
Yeah, it's easy to fall into bad habits without
even realizing it.
Speaker 1 (05:39):
Exactly.
No budget impulsive spending,just a lack of financial
know-how.
Even something as simple asmaking a budget and sticking to
it can make a huge difference.
It helps you understand whereyour money's going and make
better decisions.
Speaker 2 (05:52):
Definitely it's about awareness and control.
Speaker 1 (05:56):
Right.
Here's another principle Richpeople put their money to work
through passive income andinvestments.
Speaker 2 (06:05):
It's not just about working harder.
It's about making your moneywork for you.
Speaker 1 (06:07):
This is where compounding comes in.
Speaker 2 (06:08):
Oh yeah.
By building passive incomestreams and investing wisely,
your money can generate moremoney over time.
It can free you from alwaysneeding to trade your time for
income.
Just relying on active incomecan really hold you back in the
long run.
Speaker 1 (06:22):
That's powerful.
Right your money, making moremoney.
Speaker 2 (06:25):
Yeah, definitely.
Speaker 1 (06:26):
Now this next wealth file is all about facing
challenges.
Rich people take action evenwhen they're afraid.
Speaker 2 (06:34):
Courage under fire.
Speaker 1 (06:35):
It's not about having no fear.
It's about not letting fearparalyze you.
If you want to create the lifeyou want, you have to act
despite your fears.
If you want to create the lifeyou want, you have to act
despite your fears.
It allows you to step out ofyour comfort zone, take risks
and go after those opportunitiesthat can lead to big success.
Speaker 2 (06:51):
Letting fear control you, on the other hand, leads to
missed opportunities.
It keeps you stuck.
Speaker 1 (07:02):
Last but not least, on the mindset front, the book
emphasizes that rich people arealways learning and growing.
They have a growth mindset,always searching for new
knowledge and skills.
Speaker 2 (07:07):
Yeah, that's crucial.
Speaker 1 (07:07):
The world changes fast and if you want to stay
ahead you have to keep learningand adapting.
Thinking you already knowenough.
That's a recipe for gettingleft behind.
Speaker 2 (07:17):
It's a recipe for disaster.
Speaker 1 (07:19):
Okay, we've talked mindset, now let's get practical
.
Our next source, the $100startup, has a really
encouraging message.
It says that anyone can build aprofitable business.
You don't need tons of money ora fancy degree.
Speaker 2 (07:34):
Yeah, it's a very empowering message.
Speaker 1 (07:35):
It's all about using your passions and offering
something useful to the world.
The book is full of inspiringstories of regular people who
turn their hobbies or skillsinto successful businesses.
Speaker 2 (07:46):
Like unexpected entrepreneurs.
Speaker 1 (07:48):
Exactly.
The formula is pretty simplewhen your passion or skill meets
a need that other people have,that's where the magic happens.
Yeah, we see that with JadenHare, who turned her love for
Asian cooking into easy recipesfor busy people.
Speaker 2 (08:01):
Right, and she ended up with cookbooks, tv
appearances, the whole nineyards.
Speaker 1 (08:04):
Then there's Brandon Pierce, a piano teacher, who
used his tech skills to createsoftware that solved a problem
in his field.
Smart.
And Kelly Lester, who saw thatbusy professional women needed
more convenient yoga options andtailored her studio to meet
those needs.
These are just a few examples,but they show that finding that
sweet spot where your abilitiesmeet a real need is a great
(08:27):
place to start, and you oftendon't need much money up front,
right.
So for someone listening who'sthinking, hey, maybe I could
start something, what are somefirst steps they can take, even
with limited resources?
Speaker 2 (08:38):
The book lays out a very clear process.
First, decide what you want tooffer your product or service.
Then set up a basic onlinepresence.
Even a simple website is fine.
After that, create a compellingoffer that clearly shows the
benefits for your customers.
Make sure you have a way toaccept payments like PayPal, and
then get the word out, announceit to your network and, finally
(08:59):
, be prepared to learn andadjust as you go.
Speaker 1 (09:01):
It sounds pretty straightforward, but the key is
just to start and be open tolearning along the way.
It's crucial to understand whatyour customers really want.
The book says people basicallywant more love, money,
acceptance, free time and lessstress, long commutes and bad
relationships.
If your business can tap intothat, you're golden.
Speaker 2 (09:23):
Absolutely.
Speaker 1 (09:24):
The book also talks about freely receive, freely
give.
Speaker 2 (09:27):
Oh yeah, that's a great one.
Speaker 1 (09:28):
It's about focusing on giving real value and helping
others.
That often creates a positivecycle that attracts success back
to you.
Speaker 2 (09:35):
Like karma Kind of yeah.
Speaker 1 (09:37):
Now your offer has to be enticing.
It's not enough to just have agood product or service.
You have to present it in a waythat shows its value and makes
people want to jump on it.
Speaker 2 (09:45):
You need that wow factor.
Speaker 1 (09:47):
Yeah, that's right.
Think about Jonathan Field'soffer for his yoga studio
Unlimited classes for a crazylow price, but only for a
limited time.
It creates value and a reasonto act now.
Speaker 2 (09:58):
Urgency.
Speaker 1 (09:59):
Yes, or the Alaska Coupon Books.
Bundling high-value experiencesat a discount.
It's a clear and appealingproposition.
Makes sense and to build trust.
The book strongly recommendsoffering a satisfaction
guarantee.
It takes away that hesitationand encourages people to try
your offer.
Speaker 2 (10:16):
Takes away the risk.
Speaker 1 (10:17):
Exactly.
I also like this idea ofshifting from a martyr mindset,
where you feel like you'realways sacrificing, to a hustler
mindset in a good way.
Okay, yeah, it's about creatingsomething valuable and then
promoting it with confidence.
Don't just expect people tomagically find your amazing
thing.
Speaker 2 (10:34):
Right.
Speaker 1 (10:35):
Now, financially speaking, the book's advice is
simple Spend as little aspossible and make as much as you
can.
Speaker 2 (10:42):
Makes sense.
Speaker 1 (10:43):
Stay focused on generating income and keep your
costs down.
Speaker 2 (10:46):
Lean and mean.
Speaker 1 (10:47):
Exactly, and it doesn't have to be a brand new,
revolutionary idea.
The book talks about tweakingyour way to the bank, improving
on existing models, offeringupsells, showcasing customer
success stories using affiliatemarketing.
Speaker 2 (10:59):
Best strategies.
Speaker 1 (11:00):
And there are tons of examples of businesses started
with very little money.
A tour guide business for $28.
A publishing venture for $80.
You don't always need a fortuneto get started.
Speaker 2 (11:10):
That's encouraging right.
Speaker 1 (11:12):
It is Another key takeaway compete on value, not
just price.
Trying to be the cheapest canbe a race to the bottom.
Offer something unique,excellent service and you can
charge more and build a strongerbusiness.
Speaker 2 (11:26):
Yeah, quality over quantity.
Speaker 1 (11:27):
Sure and for the long haul.
The book talks about building ascalable business, one that can
be taught to others and isvaluable enough to grow or even
be sold.
Speaker 2 (11:36):
Makes sense.
Speaker 1 (11:37):
But the most important message is to take
action.
The book says the real failureis not trying.
Plan as you go, launch as soonas possible.
Don't get stuck in planningmode forever.
Get out there, learn and adapt.
Speaker 2 (11:50):
That bias towards action.
It's super important.
It goes hand in hand with thatidea of creating your own
outcomes.
Speaker 1 (11:55):
Totally All right.
We've covered mindset andstarting a business.
Now let's talk about takingcontrol of your personal
finances.
The total money makeover arguesthat financial success is more
about behavior than knowledge80% behavior, 20% head knowledge
.
It means that often the biggestobstacles aren't about not
knowing enough, but about ourspending habits and emotional
(12:16):
responses to money.
Dave Ramsey, the author,famously says you are the
problem with your money.
It's a call for personalresponsibility.
Speaker 2 (12:26):
Taking ownership.
Speaker 1 (12:27):
Absolutely, and the book tackles common money myths
head on, like the myth that debtconsolidation saves you money,
when it usually just rearrangesthe problem or the lottery as a
path to wealth, which the booksays is actually harmful,
especially for those who canleast afford it.
Speaker 2 (12:44):
It's like a false hope.
Speaker 1 (12:46):
Yeah, Lending money to loved ones is another myth.
It can ruin relationships.
Then there's cosigning loansthose 90 days, same as cash
offers and leasing cars, whichcan all lead to more debt.
Even buying a new car with 0%financing is questioned because
new cars lose value so quickly.
Speaker 2 (13:01):
Depreciation is a killer.
Speaker 1 (13:03):
It is, and the myth that you need debt for a good
credit score.
Forget about it.
The book says focus on buildingwealth, so you don't need
credit in the first place.
Pay cash for big purchases yeah, that makes sense.
Even mobile homes asinvestments get a thumbs down
because they tend to lose value,and be careful with debt
management and credit repairservices.
They can sometimes backfire orbe straight up scams.
Speaker 2 (13:24):
It's about being informed and cautious, totally.
Speaker 1 (13:28):
The key takeaway here is focused intensity.
Changing your financialsituation takes real effort and
dedication.
It's about resetting thosespending habits and prioritizing
your financial goals.
Speaker 2 (13:39):
It's a commitment.
Speaker 1 (13:42):
And that's where the book's famous baby steps come in
.
Speaker 2 (13:45):
Can you walk us through those?
First, save a starter emergencyfund of $1,000.
Then attack your debt using thedebt snowball method.
List your debts from smallestto largest, regardless of
interest rate, and focus onpaying off the smallest one
first.
It creates momentum.
Speaker 1 (14:02):
I like that, those quick wins.
Speaker 2 (14:03):
Right.
Then fully fund your emergencyfund to cover three to six
months of expenses.
Next, invest 15% of yourhousehold income for retirement.
After that, save for your kid'scollege, aiming to pay cash if
possible.
Then pay off your mortgageearly and finally, build wealth
and give generously.
Speaker 1 (14:20):
That debt snowball is interesting.
It prioritizes thepsychological aspect of getting
those wins early on, even iffocusing on high interest rates
might save a bit more in thelong run.
Speaker 2 (14:31):
It keeps you motivated.
Speaker 1 (14:32):
Yeah, and that fully funded emergency fund is crucial
.
It gives you peace of mind andprevents you from falling back
into debt when unexpected thingshappen.
Speaker 2 (14:41):
It's your safety net.
Speaker 1 (14:42):
The book is a huge advocate for investing in your
retirement, aiming for 15% ofyour income and paying cash for
college is a big deal,considering how much student
loan debt people struggle with.
Speaker 2 (14:54):
It's a burden.
Speaker 1 (14:55):
For sure.
Even making extra payments onyour mortgage to shorten the
loan term is encouraged.
Speaker 2 (15:00):
That can save you a ton of money and interest over
the life of the loan.
Speaker 1 (15:04):
It all starts with a spending plan telling your money
where to go instead ofwondering where it went.
This helps align your spendingwith your values and goals.
Speaker 2 (15:12):
It's about being intentional.
Speaker 1 (15:13):
The book also talks about increasing your value in
the marketplace to earn more.
It's not just about cuttingback.
It's also about investing inyourself and your skills.
Speaker 2 (15:22):
Growing your earning potential.
Speaker 1 (15:24):
We even hear stories about how negative beliefs about
money can hold people back andhow changing those beliefs can
be life changing.
Speaker 2 (15:32):
It's a mindset shift.
Speaker 1 (15:33):
The book distinguishes between financial
security having enough to coveryour needs and financial
independence, where workingbecomes optional.
Speaker 2 (15:41):
Two different levels of freedom.
Speaker 1 (15:43):
Winning in life isn't just about having the most
money.
It's about freedom and controlover your choices.
Speaker 2 (15:49):
Living life on your own terms.
Speaker 1 (15:50):
Absolutely Okay.
Our last source is Money Masterthe Game.
This one's all about long-termwealth building strategies.
It starts with what itconsiders the most important
financial decision Saving apercentage of your income
consistently.
Speaker 2 (16:05):
The power of habit.
Speaker 1 (16:06):
And the magic of compounding Even small amounts
saved consistently over time cangrow significantly.
The book of habit and the magicof compounding Even small
amounts saved consistently overtime can grow significantly.
The book urges you to takeaction now.
Asking would now be a good time.
Action is key.
Speaker 2 (16:18):
No more procrastination.
Speaker 1 (16:19):
The book also explains how those average
returns we hear about can bemisleading.
It differentiates betweentime-weighted returns, what
investment managers report, anddollar-weighted returns, which
reflect your actual returnsbased on when you invest.
Speaker 2 (16:34):
Timing matters.
Speaker 1 (16:35):
Dollar-weighted returns factor in when you
contribute and withdraw moneyand they can be quite different
from those smooth averagereturns we often see.
Speaker 2 (16:43):
It's about understanding the nuances.
Speaker 1 (16:45):
Strategic asset allocation is another important
concept diversifying yourinvestments to manage risk and
potentially boost returns.
The book is a big advocate forlow-cost index funds, arguing
they often outperform activelymanaged funds over time and save
you money on fees.
Speaker 2 (17:02):
Index funds are a classic.
Speaker 1 (17:03):
Those fees, even if they seem small, can
significantly impact yourlong-term returns.
Minimizing them is key.
The book also talks aboutfiduciary financial advisors,
who are legally obligated to actin your best interest,
providing transparency andminimizing conflicts of interest
.
Speaker 2 (17:18):
That's a valuable distinction.
Speaker 1 (17:20):
Roth retirement accounts are highlighted with
their tax-free growth andwithdrawals in retirement, and
creating a lifetime income planfor retirement is crucial
knowing how you'll use yoursavings to generate income.
Speaker 2 (17:32):
Planning for the future.
Speaker 1 (17:34):
Money Master.
The Game is all about givingyou the tools and knowledge to
take control of your financialfuture.
It encourages you to find thestrategies that work for you and
emphasizes the importance ofcombining the right mindset with
effective action.
Speaker 2 (17:48):
Empowerment through knowledge.
Speaker 1 (17:50):
Just like the total money makeover.
This book talks about differentlevels of financial freedom,
from financial security tofinancial independence.
It also explores ways topotentially accelerate your
wealth building, like throughreal estate, and reiterates
practical steps like makingextra mortgage payments.
Speaker 2 (18:06):
Smart moves.
Speaker 1 (18:07):
Re-evaluating expenses and creating a spending
plan are crucial for takingcontrol and once again
increasing your value in themarketplace is highlighted as a
key driver of success.
The book also encourages you tostay ahead of trends and
capitalize on new opportunities.
Speaker 2 (18:22):
Being proactive.
Speaker 1 (18:24):
So, as we wrap up, you can see how intertwined
these ideas are.
Building wealth isn't justabout the numbers.
It's about cultivating a wealthmindset.
Believe in yourself, commit toyour goals, learn from others
and don't be afraid to promoteyourself.
Speaker 2 (18:38):
It's about the inner game and the outer game working
together.
Speaker 1 (18:41):
Exactly, and the strategies we've discussed
starting a business, controllingyour spending, saving
consistently, investing wiselythese are the actions that turn
that mindset into real-worldresults.
Speaker 2 (18:53):
Putting it all into practice.
Speaker 1 (18:55):
The takeaway here is that taking that first step, no
matter how small, is crucial.
Be proactive, start where youare, be open to learning and
don't let fear hold you back.
Speaker 2 (19:07):
It's about taking charge.
Speaker 1 (19:07):
Here's something to think about.
Imagine what's possible, notjust financially, but in every
area of your life, If youembrace your potential for
wealth and cultivate thatproactive mindset.
Imagine the impact greaterfinancial freedom could have,
not just for you and your lovedones, but for the world around
you.
Speaker 2 (19:24):
It's about expanding your horizons.
Speaker 1 (19:26):
Take some time to reflect on these ideas, Maybe
revisit your financial habitsand beliefs.
Until next time, keep exploring, keep learning and keep taking
those steps towards the life youdesire.
Speaker 2 (19:37):
Onwards and upwards.
Speaker 1 (19:38):
Zayay and Rico together.
Let's get it.
Speaker 2 (19:41):
Outro music.
Have you ever noticed how some people just seem to
have this like natural flow withmoney?
Wealth just doesn't seem like aconstant uphill battle for them
.
Speaker 2 (00:08):
Yeah, it's like they have a different mindset.
Speaker 1 (00:11):
It really does make you wonder what makes that
difference Like, what is itabout their thinking?
Well, in this deep dive we'regoing to try to get to the
bottom of that.
Speaker 2 (00:20):
Absolutely.
We're going to unpack thosecore ideas and practical steps
that can really help you shifthow you think about building
wealth.
We've pulled some awesomeinsights from some key resources
, those fundamental principlesof a wealthy mindset.
We've got some actionablebusiness strategies, all
designed to help you find aclearer path towards financial
(00:41):
well-being.
Speaker 1 (00:42):
Yeah, totally.
And before we get too far, Iwant to make it clear this isn't
about some magic formula to getrich quick or anything.
Speaker 2 (00:48):
No, not at all.
Speaker 1 (00:49):
It's really about those fundamental shifts in how
you think and those concreteactions you can take to build a
solid foundation for lastingfinancial success.
Okay, let's dive right in.
Let's talk about the power ofmindset.
We'll start with some insightsfrom Secrets of the Millionaire
Mind.
Speaker 2 (01:06):
Okay, great.
So one of the most interestingconcepts in that book is the
idea of wealth files.
You can think of them as likeyour internal programming around
money, like those deep-seatedbelief and habits that really
distinguish the wealthy fromwell everyone else.
Speaker 1 (01:23):
It's realizing that sometimes the biggest obstacle
to building wealth is actuallyinternal, not external yeah,
that's fascinating, right, it'slike the operating system
running in the background ofyour financial life.
Huh, and one of the coreprograms for the wealthy is this
belief that they create theirlives, especially their
financial lives.
They feel in control ratherthan feeling like things just
(01:45):
happen to them.
Speaker 2 (01:46):
And that raises a really important question for
you when you think about yourown finances, do you generally
feel like you're the architect,like you're making deliberate
choices, or do you feel morelike you're just reacting to
whatever life throws your way?
Speaker 1 (01:59):
Right, because that sense of agency that's a huge
part of a wealthy mindset,absolutely, and that control
connects with another wealthfile.
Speaker 2 (02:06):
Yeah.
Speaker 1 (02:07):
Wealthy individuals are committed to being rich.
It's not just like, oh, that'dbe nice.
Speaker 2 (02:12):
Right.
Speaker 1 (02:12):
It's deeper than that .
It's a real dedication.
Speaker 2 (02:15):
Yeah, and think about it.
Achieving any big goal requiresthat level of commitment.
Right, right.
Wealth often takes consistenteffort.
You've got to overcome setbacks, you've got to stay focused on
the long term.
So that commitment, it's yourfuel.
Speaker 1 (02:31):
It is Okay.
This next one might be a littlecontroversial.
Rich people actually admireother rich and successful people
.
They're not jealous orresentful, they're inspired,
they want to learn.
Speaker 2 (02:42):
Yeah, that's a good point.
It really highlights the impactof your environment.
When you surround yourself withsuccessful people, it can
create a really positive,empowering atmosphere, and that
makes a huge difference in yourown belief that you can do it
too.
Speaker 1 (02:55):
Yeah, and the book mentions how negativity towards
wealth or wealthy people can bea real downer.
It can block you from achievingit yourself.
Speaker 2 (03:02):
It's like a subconscious barrier.
Speaker 1 (03:03):
Exactly so.
It's about shifting thatperspective.
Instead of envy, try tounderstand and learn from their
positive traits.
Speaker 2 (03:10):
Exactly, and this leads us to another key point
Wealthy people are willing topromote themselves and their
value.
Speaker 1 (03:18):
Ooh, this is a tricky one.
Speaker 2 (03:20):
Yeah, I know right, there's often this negative
feeling around self-promotion,like it's bragging or something.
Speaker 1 (03:25):
Totally.
You don't want to come off asarrogant.
Speaker 2 (03:26):
Right.
Speaker 1 (03:27):
But the book makes it clear.
It's about having theconfidence to show your worth,
the benefits you bring.
If you don't believe inyourself, how can you expect
others to?
Speaker 2 (03:36):
It's all about self-worth.
People with a wealthy mindsetknow their own value.
Speaker 1 (03:40):
That's so true.
And this brings us to anotherinteresting idea value.
That's so true, and this bringsus to another interesting idea.
Rich people are good atreceiving.
They can accept compliments,gifts, even financial
opportunities, yeah, and thebook contrasts that with people
struggling financially who oftenhave trouble receiving, maybe
feelings of unworthiness orguilt.
Speaker 2 (04:00):
That can come from deep-seated beliefs.
You know about money anddeservingness.
It's really important tochallenge thoseated beliefs you
know about money anddeservingness.
It's really important tochallenge those limiting beliefs
if you want to open yourself upto abundance.
Receiving is part of the flow.
It's the other side of givingvalue.
Speaker 1 (04:15):
It makes sense right Like give and take.
Speaker 2 (04:16):
Exactly.
Speaker 1 (04:17):
Okay, another wealth file.
Wealthy people choose to bepaid for results, not just for
their time.
This is a big shift from thetraditional salary or hourly
wage we're all used to.
Speaker 2 (04:28):
Right.
And if we look at the biggerpicture, time-based income kind
of limits how much you can earnright, there are only so many
hours in a day.
Result-based income, on theother hand, links your pay to
the value you create.
Speaker 1 (04:40):
Think about it Sales consulting, starting a business
Focusing on performance, canreally unlock some serious
growth.
Just trading time for money canmake you feel stuck.
Okay, here's another keydifference Shifting your focus
from just your work income tobuilding your net worth.
People struggling financiallyoften just focus on that
paycheck and daily expenses.
Speaker 2 (05:00):
And that creates a short-term view that makes it
harder to build long-term wealth.
The book really emphasizes that.
Speaker 1 (05:07):
Net worth, which is your assets minus your
liabilities, paints a muchclearer picture of your
financial health.
It's not just about what you'reearning right now.
Speaker 2 (05:18):
Focusing on net worth makes you think long-term about
accumulating assets andbuilding a solid financial base
term about accumulating assetsand building a solid financial
base.
Speaker 1 (05:29):
Okay, now, this might sound obvious, but the book
points out that rich peoplemanage their money well.
I know right, but it's a skillthat's often overlooked,
especially by those who haven'tachieved financial success yet.
Speaker 2 (05:36):
Yeah, it's easy to fall into bad habits without
even realizing it.
Speaker 1 (05:39):
Exactly.
No budget impulsive spending,just a lack of financial
know-how.
Even something as simple asmaking a budget and sticking to
it can make a huge difference.
It helps you understand whereyour money's going and make
better decisions.
Speaker 2 (05:52):
Definitely it's about awareness and control.
Speaker 1 (05:56):
Right.
Here's another principle Richpeople put their money to work
through passive income andinvestments.
Speaker 2 (06:05):
It's not just about working harder.
It's about making your moneywork for you.
Speaker 1 (06:07):
This is where compounding comes in.
Speaker 2 (06:08):
Oh yeah.
By building passive incomestreams and investing wisely,
your money can generate moremoney over time.
It can free you from alwaysneeding to trade your time for
income.
Just relying on active incomecan really hold you back in the
long run.
Speaker 1 (06:22):
That's powerful.
Right your money, making moremoney.
Speaker 2 (06:25):
Yeah, definitely.
Speaker 1 (06:26):
Now this next wealth file is all about facing
challenges.
Rich people take action evenwhen they're afraid.
Speaker 2 (06:34):
Courage under fire.
Speaker 1 (06:35):
It's not about having no fear.
It's about not letting fearparalyze you.
If you want to create the lifeyou want, you have to act
despite your fears.
If you want to create the lifeyou want, you have to act
despite your fears.
It allows you to step out ofyour comfort zone, take risks
and go after those opportunitiesthat can lead to big success.
Speaker 2 (06:51):
Letting fear control you, on the other hand, leads to
missed opportunities.
It keeps you stuck.
Speaker 1 (07:02):
Last but not least, on the mindset front, the book
emphasizes that rich people arealways learning and growing.
They have a growth mindset,always searching for new
knowledge and skills.
Speaker 2 (07:07):
Yeah, that's crucial.
Speaker 1 (07:07):
The world changes fast and if you want to stay
ahead you have to keep learningand adapting.
Thinking you already knowenough.
That's a recipe for gettingleft behind.
Speaker 2 (07:17):
It's a recipe for disaster.
Speaker 1 (07:19):
Okay, we've talked mindset, now let's get practical
.
Our next source, the $100startup, has a really
encouraging message.
It says that anyone can build aprofitable business.
You don't need tons of money ora fancy degree.
Speaker 2 (07:34):
Yeah, it's a very empowering message.
Speaker 1 (07:35):
It's all about using your passions and offering
something useful to the world.
The book is full of inspiringstories of regular people who
turn their hobbies or skillsinto successful businesses.
Speaker 2 (07:46):
Like unexpected entrepreneurs.
Speaker 1 (07:48):
Exactly.
The formula is pretty simplewhen your passion or skill meets
a need that other people have,that's where the magic happens.
Yeah, we see that with JadenHare, who turned her love for
Asian cooking into easy recipesfor busy people.
Speaker 2 (08:01):
Right, and she ended up with cookbooks, tv
appearances, the whole nineyards.
Speaker 1 (08:04):
Then there's Brandon Pierce, a piano teacher, who
used his tech skills to createsoftware that solved a problem
in his field.
Smart.
And Kelly Lester, who saw thatbusy professional women needed
more convenient yoga options andtailored her studio to meet
those needs.
These are just a few examples,but they show that finding that
sweet spot where your abilitiesmeet a real need is a great
(08:27):
place to start, and you oftendon't need much money up front,
right.
So for someone listening who'sthinking, hey, maybe I could
start something, what are somefirst steps they can take, even
with limited resources?
Speaker 2 (08:38):
The book lays out a very clear process.
First, decide what you want tooffer your product or service.
Then set up a basic onlinepresence.
Even a simple website is fine.
After that, create a compellingoffer that clearly shows the
benefits for your customers.
Make sure you have a way toaccept payments like PayPal, and
then get the word out, announceit to your network and, finally
(08:59):
, be prepared to learn andadjust as you go.
Speaker 1 (09:01):
It sounds pretty straightforward, but the key is
just to start and be open tolearning along the way.
It's crucial to understand whatyour customers really want.
The book says people basicallywant more love, money,
acceptance, free time and lessstress, long commutes and bad
relationships.
If your business can tap intothat, you're golden.
Speaker 2 (09:23):
Absolutely.
Speaker 1 (09:24):
The book also talks about freely receive, freely
give.
Speaker 2 (09:27):
Oh yeah, that's a great one.
Speaker 1 (09:28):
It's about focusing on giving real value and helping
others.
That often creates a positivecycle that attracts success back
to you.
Speaker 2 (09:35):
Like karma Kind of yeah.
Speaker 1 (09:37):
Now your offer has to be enticing.
It's not enough to just have agood product or service.
You have to present it in a waythat shows its value and makes
people want to jump on it.
Speaker 2 (09:45):
You need that wow factor.
Speaker 1 (09:47):
Yeah, that's right.
Think about Jonathan Field'soffer for his yoga studio
Unlimited classes for a crazylow price, but only for a
limited time.
It creates value and a reasonto act now.
Speaker 2 (09:58):
Urgency.
Speaker 1 (09:59):
Yes, or the Alaska Coupon Books.
Bundling high-value experiencesat a discount.
It's a clear and appealingproposition.
Makes sense and to build trust.
The book strongly recommendsoffering a satisfaction
guarantee.
It takes away that hesitationand encourages people to try
your offer.
Speaker 2 (10:16):
Takes away the risk.
Speaker 1 (10:17):
Exactly.
I also like this idea ofshifting from a martyr mindset,
where you feel like you'realways sacrificing, to a hustler
mindset in a good way.
Okay, yeah, it's about creatingsomething valuable and then
promoting it with confidence.
Don't just expect people tomagically find your amazing
thing.
Speaker 2 (10:34):
Right.
Speaker 1 (10:35):
Now, financially speaking, the book's advice is
simple Spend as little aspossible and make as much as you
can.
Speaker 2 (10:42):
Makes sense.
Speaker 1 (10:43):
Stay focused on generating income and keep your
costs down.
Speaker 2 (10:46):
Lean and mean.
Speaker 1 (10:47):
Exactly, and it doesn't have to be a brand new,
revolutionary idea.
The book talks about tweakingyour way to the bank, improving
on existing models, offeringupsells, showcasing customer
success stories using affiliatemarketing.
Speaker 2 (10:59):
Best strategies.
Speaker 1 (11:00):
And there are tons of examples of businesses started
with very little money.
A tour guide business for $28.
A publishing venture for $80.
You don't always need a fortuneto get started.
Speaker 2 (11:10):
That's encouraging right.
Speaker 1 (11:12):
It is Another key takeaway compete on value, not
just price.
Trying to be the cheapest canbe a race to the bottom.
Offer something unique,excellent service and you can
charge more and build a strongerbusiness.
Speaker 2 (11:26):
Yeah, quality over quantity.
Speaker 1 (11:27):
Sure and for the long haul.
The book talks about building ascalable business, one that can
be taught to others and isvaluable enough to grow or even
be sold.
Speaker 2 (11:36):
Makes sense.
Speaker 1 (11:37):
But the most important message is to take
action.
The book says the real failureis not trying.
Plan as you go, launch as soonas possible.
Don't get stuck in planningmode forever.
Get out there, learn and adapt.
Speaker 2 (11:50):
That bias towards action.
It's super important.
It goes hand in hand with thatidea of creating your own
outcomes.
Speaker 1 (11:55):
Totally All right.
We've covered mindset andstarting a business.
Now let's talk about takingcontrol of your personal
finances.
The total money makeover arguesthat financial success is more
about behavior than knowledge80% behavior, 20% head knowledge
.
It means that often the biggestobstacles aren't about not
knowing enough, but about ourspending habits and emotional
(12:16):
responses to money.
Dave Ramsey, the author,famously says you are the
problem with your money.
It's a call for personalresponsibility.
Speaker 2 (12:26):
Taking ownership.
Speaker 1 (12:27):
Absolutely, and the book tackles common money myths
head on, like the myth that debtconsolidation saves you money,
when it usually just rearrangesthe problem or the lottery as a
path to wealth, which the booksays is actually harmful,
especially for those who canleast afford it.
Speaker 2 (12:44):
It's like a false hope.
Speaker 1 (12:46):
Yeah, Lending money to loved ones is another myth.
It can ruin relationships.
Then there's cosigning loansthose 90 days, same as cash
offers and leasing cars, whichcan all lead to more debt.
Even buying a new car with 0%financing is questioned because
new cars lose value so quickly.
Speaker 2 (13:01):
Depreciation is a killer.
Speaker 1 (13:03):
It is, and the myth that you need debt for a good
credit score.
Forget about it.
The book says focus on buildingwealth, so you don't need
credit in the first place.
Pay cash for big purchases yeah, that makes sense.
Even mobile homes asinvestments get a thumbs down
because they tend to lose value,and be careful with debt
management and credit repairservices.
They can sometimes backfire orbe straight up scams.
Speaker 2 (13:24):
It's about being informed and cautious, totally.
Speaker 1 (13:28):
The key takeaway here is focused intensity.
Changing your financialsituation takes real effort and
dedication.
It's about resetting thosespending habits and prioritizing
your financial goals.
Speaker 2 (13:39):
It's a commitment.
Speaker 1 (13:42):
And that's where the book's famous baby steps come in
.
Speaker 2 (13:45):
Can you walk us through those?
First, save a starter emergencyfund of $1,000.
Then attack your debt using thedebt snowball method.
List your debts from smallestto largest, regardless of
interest rate, and focus onpaying off the smallest one
first.
It creates momentum.
Speaker 1 (14:02):
I like that, those quick wins.
Speaker 2 (14:03):
Right.
Then fully fund your emergencyfund to cover three to six
months of expenses.
Next, invest 15% of yourhousehold income for retirement.
After that, save for your kid'scollege, aiming to pay cash if
possible.
Then pay off your mortgageearly and finally, build wealth
and give generously.
Speaker 1 (14:20):
That debt snowball is interesting.
It prioritizes thepsychological aspect of getting
those wins early on, even iffocusing on high interest rates
might save a bit more in thelong run.
Speaker 2 (14:31):
It keeps you motivated.
Speaker 1 (14:32):
Yeah, and that fully funded emergency fund is crucial
.
It gives you peace of mind andprevents you from falling back
into debt when unexpected thingshappen.
Speaker 2 (14:41):
It's your safety net.
Speaker 1 (14:42):
The book is a huge advocate for investing in your
retirement, aiming for 15% ofyour income and paying cash for
college is a big deal,considering how much student
loan debt people struggle with.
Speaker 2 (14:54):
It's a burden.
Speaker 1 (14:55):
For sure.
Even making extra payments onyour mortgage to shorten the
loan term is encouraged.
Speaker 2 (15:00):
That can save you a ton of money and interest over
the life of the loan.
Speaker 1 (15:04):
It all starts with a spending plan telling your money
where to go instead ofwondering where it went.
This helps align your spendingwith your values and goals.
Speaker 2 (15:12):
It's about being intentional.
Speaker 1 (15:13):
The book also talks about increasing your value in
the marketplace to earn more.
It's not just about cuttingback.
It's also about investing inyourself and your skills.
Speaker 2 (15:22):
Growing your earning potential.
Speaker 1 (15:24):
We even hear stories about how negative beliefs about
money can hold people back andhow changing those beliefs can
be life changing.
Speaker 2 (15:32):
It's a mindset shift.
Speaker 1 (15:33):
The book distinguishes between financial
security having enough to coveryour needs and financial
independence, where workingbecomes optional.
Speaker 2 (15:41):
Two different levels of freedom.
Speaker 1 (15:43):
Winning in life isn't just about having the most
money.
It's about freedom and controlover your choices.
Speaker 2 (15:49):
Living life on your own terms.
Speaker 1 (15:50):
Absolutely Okay.
Our last source is Money Masterthe Game.
This one's all about long-termwealth building strategies.
It starts with what itconsiders the most important
financial decision Saving apercentage of your income
consistently.
Speaker 2 (16:05):
The power of habit.
Speaker 1 (16:06):
And the magic of compounding Even small amounts
saved consistently over time cangrow significantly.
The book of habit and the magicof compounding Even small
amounts saved consistently overtime can grow significantly.
The book urges you to takeaction now.
Asking would now be a good time.
Action is key.
Speaker 2 (16:18):
No more procrastination.
Speaker 1 (16:19):
The book also explains how those average
returns we hear about can bemisleading.
It differentiates betweentime-weighted returns, what
investment managers report, anddollar-weighted returns, which
reflect your actual returnsbased on when you invest.
Speaker 2 (16:34):
Timing matters.
Speaker 1 (16:35):
Dollar-weighted returns factor in when you
contribute and withdraw moneyand they can be quite different
from those smooth averagereturns we often see.
Speaker 2 (16:43):
It's about understanding the nuances.
Speaker 1 (16:45):
Strategic asset allocation is another important
concept diversifying yourinvestments to manage risk and
potentially boost returns.
The book is a big advocate forlow-cost index funds, arguing
they often outperform activelymanaged funds over time and save
you money on fees.
Speaker 2 (17:02):
Index funds are a classic.
Speaker 1 (17:03):
Those fees, even if they seem small, can
significantly impact yourlong-term returns.
Minimizing them is key.
The book also talks aboutfiduciary financial advisors,
who are legally obligated to actin your best interest,
providing transparency andminimizing conflicts of interest
.
Speaker 2 (17:18):
That's a valuable distinction.
Speaker 1 (17:20):
Roth retirement accounts are highlighted with
their tax-free growth andwithdrawals in retirement, and
creating a lifetime income planfor retirement is crucial
knowing how you'll use yoursavings to generate income.
Speaker 2 (17:32):
Planning for the future.
Speaker 1 (17:34):
Money Master.
The Game is all about givingyou the tools and knowledge to
take control of your financialfuture.
It encourages you to find thestrategies that work for you and
emphasizes the importance ofcombining the right mindset with
effective action.
Speaker 2 (17:48):
Empowerment through knowledge.
Speaker 1 (17:50):
Just like the total money makeover.
This book talks about differentlevels of financial freedom,
from financial security tofinancial independence.
It also explores ways topotentially accelerate your
wealth building, like throughreal estate, and reiterates
practical steps like makingextra mortgage payments.
Speaker 2 (18:06):
Smart moves.
Speaker 1 (18:07):
Re-evaluating expenses and creating a spending
plan are crucial for takingcontrol and once again
increasing your value in themarketplace is highlighted as a
key driver of success.
The book also encourages you tostay ahead of trends and
capitalize on new opportunities.
Speaker 2 (18:22):
Being proactive.
Speaker 1 (18:24):
So, as we wrap up, you can see how intertwined
these ideas are.
Building wealth isn't justabout the numbers.
It's about cultivating a wealthmindset.
Believe in yourself, commit toyour goals, learn from others
and don't be afraid to promoteyourself.
Speaker 2 (18:38):
It's about the inner game and the outer game working
together.
Speaker 1 (18:41):
Exactly, and the strategies we've discussed
starting a business, controllingyour spending, saving
consistently, investing wiselythese are the actions that turn
that mindset into real-worldresults.
Speaker 2 (18:53):
Putting it all into practice.
Speaker 1 (18:55):
The takeaway here is that taking that first step, no
matter how small, is crucial.
Be proactive, start where youare, be open to learning and
don't let fear hold you back.
Speaker 2 (19:07):
It's about taking charge.
Speaker 1 (19:07):
Here's something to think about.
Imagine what's possible, notjust financially, but in every
area of your life, If youembrace your potential for
wealth and cultivate thatproactive mindset.
Imagine the impact greaterfinancial freedom could have,
not just for you and your lovedones, but for the world around
you.
Speaker 2 (19:24):
It's about expanding your horizons.
Speaker 1 (19:26):
Take some time to reflect on these ideas, Maybe
revisit your financial habitsand beliefs.
Until next time, keep exploring, keep learning and keep taking
those steps towards the life youdesire.
Speaker 2 (19:37):
Onwards and upwards.
Speaker 1 (19:38):
Zayay and Rico together.
Let's get it.
Speaker 2 (19:41):
Outro music.
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