314: [Fadi Habib] Ai Review

Today, we're diving into the world of the sandwich generation and how to break free from the paycheck-to-paycheck grind. If you're juggling braces for the kids, saving for college, and keeping an eye on your parents' care costs, you're not alone! We chat with Fadi Habib, who shares some smart strategies to help you build real wealth instead of just getting by. Forget the hustle of trading time for dollars—it's all about shifting your mindset to become an investor, where your money works for you rather than the other way around. We’ll bust some myths about quick riches and highlight four key pillars you can follow to navigate this financial rollercoaster, putting you on the path to financial freedom. So grab a snack and settle in—it’s time to rethink how we approach investing and wealth building!

Takeaways:

• The sandwich generation faces unique financial pressures, balancing child expenses and elder care costs.
• To build wealth, it's crucial to shift from being an employee to becoming an investor.
• Controlled risk is key; successful investing hinges on managing emotions and avoiding fear-driven decisions.
• Investing isn't a get-rich-quick scheme; it's about consistent, disciplined strategies over time.
• Practicing with paper trading helps you learn without financial risk before investing real money.
• The biggest part of successful investing is psychology, which can make or break your financial journey.

Links referenced in this episode:

• legacywealthbuilderacademy.com

Check out more episodes at https://aboutthatwallet.com

Episode 314 Ai Review

Episode Transcript

(00:00):
Welcome to the deep dive.
Today we're tackling somethingreally pressing for a lot of people.
If you're maybe paying forbraces and saving for college, but
also, you know, thinking aboutmom or dad's future care costs.
Yeah.
You're likely part of thesandwich generation.
Your time's stretched, yourmoney's pulled in multiple directions.
So we need smart strategies.
We're digging into episode 314of about that Wallet, specifically,

(00:23):
the great advice from FadiHabib on how this generation can
actually build wealth, notjust get by.
Yeah.
And the first hurdle, it'sfundamental, really, is how most
people earn money.
The source material pointsstraight to Robert Kiyosaki's idea,
the cash flow quadrant.
Most folks are ease quadrant employees.
You trade your time hours for dollars.

(00:43):
Basically, and the systemfeels stacked against you there.
Exactly.
The government gets its slicefirst through taxes, and you have
almost zero ways to legallywrite off expenses related to earning
that income.
It makes getting trulywealthy, well, incredibly difficult.
Okay, so that time for moneytrade, it's not just inefficient,
it's almost designed to keepyou, you know, running in place.

(01:04):
Pretty much, you're payingretail on your income.
Essentially, the goal, theshift we need, is moving to the I
quadrant investor.
Ah, the investor.
So that's where the leveragecomes in.
Precisely.
Investors use other people'stime, other people's money, and crucially,
the they unlock taxadvantages, things like depreciation,

(01:24):
writing off legitimatebusiness expenses.
It's a different ball game,which is vital.
If you're sandwiched, youdon't have more time.
You need your money workingharder using systems that leverage
capital.
Right.
It's about aiming forfinancial freedom, not just a slightly
bigger paycheck each month.
Which leads us nicely into abig myth we need to bust.
Let me guess, getting richquick in the market.
You got it.

(01:45):
All the hype around daytrading for flipping crypto, it's
often sold like a lottery ticket.
A quick win.
But the source material is clear.
Investing isn't the casino.
Absolutely not.
Those rapid trades, that'soften just fear or, you know, FOMO
driving decisions.
It's a fast way to lose your capital.
Okay, so if it's not gambling,what's the actual game?
It boils down to managing roi,return on investment versus risk.

(02:08):
They're two sides of the same coin.
You can't really have onewithout considering the other.
The AIM is controlled risk.
Controlled risk.
And the source mentioned aspecific number, a potential ROI.
24%.
That sounds, well, pretty high.
It does sound high.
And it's not typical passiveindex fund returns, let's be clear.
But it is achievable withdisciplined active investing.

(02:32):
We're talking about asustainable rate that if you hit
it, doubles your money roughlyevery three years.
That's powerful compounding.
Okay, but how, how do you getthat kind of return without taking
massive risks, especially ifyou're busy?
It comes down to being discriminatory.
You're not buying lotterytickets, you're buying pieces of
actual businesses.
You have to look under the hood.

(02:53):
Is this company actuallymaking money?
Think Apple versus say BlackBerry.
Now are the fundamental solidretained earnings cash flow.
So due diligence, not justchasing a hot stock tip.
Exactly.
If the business isn't healthy,you're speculating, plain and simple.
Right, that makes sense.
So for the busy person, thesandwich generation member who needs
a framework, the source laidout like four pillars to get started

(03:17):
safely.
Yeah, four key things.
First is mindset.
You have to accept investingas a skill, like learning medicine
or law.
It needs real study and practice.
You can't just wing it.
Okay, mindset first.
What's pillar two?
Pillar two is absolutelycritical for managing risk.
Start with paper trading immediately.
Use a free simulation accountwith, you know, monopoly money.

(03:39):
This lets you learn, lets youfail, lets you make all the rookie
mistakes without losing asingle real dollar.
Only put actual capital on theline after you've proven you can
be consistently profitable inthe simulation.
That seems like a no brainer.
Practice before playing forreal stakes.
Pillar three, learning and mentorship.
Look, YouTube is great forinformation, for knowledge, but it

(04:00):
doesn't give you feedback onyour specific mistakes.
You need someone, a coach ormentor to watch what you're doing,
point out your blind spots andhelp you actually implement the knowledge
correctly.
Knowledge isn't enough.
It's about correct application.
Right.
That feedback loop is missingif you just watch videos.
Okay, and the last pillar, the fourth.
Pillar, kind of puts it all.
Understanding the breakdown of success.

(04:21):
The source suggests it's maybe10% strategy, like your buy sell
rules.
Yeah.
Then 30% is risk mitigation,position sizing, stop losses, that
sort of thing.
Okay, so that's 40%.
What's the rest?
The biggest chunk?
60% is psychology.
Managing your own head,Controlling the fear that makes you
sell low and the greed thatmakes you buy high.

(04:43):
That emotional rollercoasteris what wipes most people out.
60% psychology.
Wow.
Okay, so wrapping this up forthe listener, what's the big takeaway
message?
It really comes down to actionover analysis.
You can research forever,analyze things to death.
That's analysis paralysis.
Yeah, I know that feeling exactly.
Especially when you feel likeyou have so much responsibility,
like the sandwich generation does.

(05:04):
But success comes from doing,taking action.
Even imperfect actionaccelerates your learning way faster
than just reading one more article.
Make mistakes, learn, adjust,keep going precisely.
And maybe a final thought toleave people with something a bit
provocative from the source material.
Real successful investing.
It should feel boring.

(05:26):
Slow, methodical, boring, not exciting.
If you're feeling anadrenaline rush when you click buy
or sell, you're probably doingit wrong.
That's speculation.
That's the casino mindset.
Creeping back in Investingwell is often like watching paint
dry until one day you look upand wow, your account has grown significantly.
It's the slow, steady wins the race.

(05:48):
That's a powerful reframe.
Or boring is good.
Okay, so you've heard theframework, the insights from Fadi
Habib via About that wallet.
The tools are there.
Now it's about taking thatfirst step, that action.
We really encourage you tolisten to the full episode for even
more detail and examples.
Share this deep dive withanother friend who's maybe feeling
that sandwich generation squeeze.

(06:08):
And hey, if this helpedclarify things for you, we'd love
it if you'd leave us a fivestar review.
Thanks for tuning in.
We'll catch you on the nextdeep Dive.