Latest / Do You F*cking Mind? / 345. Change Your Money Mindset and Live Your Rich Life with Ramit Sethi

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345. Change Your Money Mindset and Live Your Rich Life with Ramit Sethi · Do You F*cking Mind?

• 0:00
  Speaker 1: Hello, beautiful beans, and welcome to the episode of Today.
• 0:03
  Speaker 1: On today's episode, I am pumped because I have Remit Sati.
• 0:08
  Speaker 1: He is a phenomenal guest. He is going to impart
• 0:11
  Speaker 1: so much knowledge. The way he speaks, it's very on
• 0:15
  Speaker 1: brand for us, very on brand for me. Absolutely loved it.
• 0:18
  Speaker 1: He has studied social psychology, he's a finance expert. You've
• 0:22
  Speaker 1: probably heard of him because he even has a Netflix show,
• 0:24
  Speaker 1: which is my ultimate goal to have a Netflix show
• 0:27
  Speaker 1: on I don't know what, but his Netflix show is
• 0:30
  Speaker 1: called How to Get Rich. His podcast is called I
• 0:33
  Speaker 1: Will Teach You to Be Rich, And this podcast is
• 0:36
  Speaker 1: where he interviews couples and basically breaks down their finances
• 0:40
  Speaker 1: and you just have to listen to it. It's so great.
• 0:44
  Speaker 1: He also has a book of the same title, I
• 0:46
  Speaker 1: Will Teach You to Be Rich. So if I haven't
• 0:49
  Speaker 1: already sold it, then check out this episode. You will
• 0:52
  Speaker 1: absolutely love it. You're gonna fucking love him. And we
• 0:55
  Speaker 1: talk about money mindset, how to change your money mindset,
• 0:58
  Speaker 1: how it's never too late to invest. Probably one of
• 1:01
  Speaker 1: my favorite things about him is that he is not
• 1:03
  Speaker 1: the kind of He doesn't give the kind of advice
• 1:06
  Speaker 1: where he's like, cut out your coffees every day. He's
• 1:09
  Speaker 1: all about spending money on things that you absolutely love,
• 1:12
  Speaker 1: and he teaches you how to do that. So I'm
• 1:14
  Speaker 1: not going to go on any further. I'm just going
• 1:16
  Speaker 1: to bring him straight in and let's dive straight into
• 1:18
  Speaker 1: the episode with Remit Safety. Okay, So, welcome to the show,
• 1:23
  Speaker 1: Remit SAFETI. I'm so excited to have you on the show.
• 1:27
  Speaker 1: There's so many people that message me asking about money mindset.
• 1:31
  Speaker 1: It's very much psychological as well as it is like
• 1:34
  Speaker 1: a behavioral thing. So I think it's really cool to
• 1:37
  Speaker 1: have you on the show. So before we dive into
• 1:39
  Speaker 1: questions and anything like that, I'd love for you to
• 1:42
  Speaker 1: explain to my audience what you're about, how you're different
• 1:45
  Speaker 1: to everyone else, just your general vibe.
• 1:49
  Speaker 2: Well, I think when most people think about money, they
• 1:53
  Speaker 2: get very rigid and they think of a spreadsheet with
• 1:56
  Speaker 2: a bunch of numbers. I hate that. When I think
• 1:59
  Speaker 2: of money, I see a beautiful trip to Disneyland with
• 2:03
  Speaker 2: your children. I see an amazing luxury resort. I see
• 2:07
  Speaker 2: being able to take your parents or your loved ones
• 2:10
  Speaker 2: out for an amazing dinner and pick up the check.
• 2:13
  Speaker 2: And so for me, money is not only about the
• 2:17
  Speaker 2: dollars and cents. It's certainly not about tracking in a budget,
• 2:21
  Speaker 2: because I don't even like budgets. It is about defining
• 2:24
  Speaker 2: your rich life in a really specific, unapologetic vision and
• 2:29
  Speaker 2: then using your money to live that way. So you're
• 2:32
  Speaker 2: not gonna hear me telling anyone here today cut back
• 2:34
  Speaker 2: on your lattes. That's not my style. In fact, if
• 2:37
  Speaker 2: you tell me what you love, we're going to talk
• 2:39
  Speaker 2: about how you can actually spend more on it. We'll
• 2:42
  Speaker 2: cover money psychology, and you got to know your numbers
• 2:45
  Speaker 2: as well, so we'll talk about that too.
• 2:46
  Speaker 1: Great. Great, Well, I think that's like a huge one.
• 2:49
  Speaker 1: I think most people when they look at budget, firstly,
• 2:52
  Speaker 1: I don't think most people know how to budget, including myself.
• 2:55
  Speaker 1: So I'm really excited for this chat because I am
• 2:58
  Speaker 1: not good at budgeting at all in the sense that
• 3:01
  Speaker 1: I don't budget at all. I don't.
• 3:04
  Speaker 2: I'm not good at budgeting in the sense that I
• 3:06
  Speaker 2: don't do it. I don't care budget. That's fine, most
• 3:08
  Speaker 2: people don't. They don't. Nobody really wants to budget. It's
• 3:12
  Speaker 2: just this thing that everyone talks about. Oh I feel bad.
• 3:15
  Speaker 2: I don't keep a budget. I'm like, well, why don't
• 3:17
  Speaker 2: you just not? And they look like stunned, Like I
• 3:19
  Speaker 2: told them, why don't you just stop breathing oxygen? You
• 3:22
  Speaker 2: don't need to budget, you know. I've I run my
• 3:27
  Speaker 2: own money. I don't budget. I'm not sitting here counting
• 3:30
  Speaker 2: the price of asparagus. You think I want to spend
• 3:32
  Speaker 2: my time. It's a waste of time.
• 3:34
  Speaker 1: Yeah.
• 3:34
  Speaker 2: What I do is I have a few key things
• 3:37
  Speaker 2: that are really important that I know about my numbers.
• 3:40
  Speaker 2: I know my savings rate, I know my investment rate,
• 3:43
  Speaker 2: I know my act allocation. I know a few things
• 3:46
  Speaker 2: like about five to eight and those are all automatically
• 3:50
  Speaker 2: set up, so I'm not tracking it every day. I
• 3:52
  Speaker 2: don't even have any financial apps on my phone. I
• 3:55
  Speaker 2: don't need them. My money goes where it needs to
• 3:57
  Speaker 2: go according to my plan. I check in on it
• 3:59
  Speaker 2: at every six to twelve months, and then I close
• 4:02
  Speaker 2: my computer and go outside because that's where my rich
• 4:05
  Speaker 2: life is truly lived.
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  Speaker 1: I love that. Okay, so you're you're approaching it more
• 4:09
  Speaker 1: like you've got You've set yourself up a plan, and
• 4:14
  Speaker 1: then when the money comes in, it's kind of distributed
• 4:16
  Speaker 1: in that way, and then you're not having to think
• 4:18
  Speaker 1: about it. Where you're spending is going and where like
• 4:20
  Speaker 1: your traits and all of that. Because for me, as
• 4:23
  Speaker 1: my income has increased, yes, I'm saving a little bit,
• 4:27
  Speaker 1: but my spending has increased, and I'm a little bit like, Okay,
• 4:32
  Speaker 1: i am traveling more, which is a huge That's something
• 4:35
  Speaker 1: I value so much, so I'm really happy about that,
• 4:37
  Speaker 1: and I love to spend my money on travel, but
• 4:39
  Speaker 1: also just on day to day things. I'm like, I
• 4:42
  Speaker 1: feel like my life lifestyle hasn't changed that much yet.
• 4:45
  Speaker 1: All my money is just going as my income increases,
• 4:48
  Speaker 1: as does my spending.
• 4:50
  Speaker 2: Well, first of all, shouldn't your spending increase as your
• 4:53
  Speaker 2: income increases? Yes, don't you think that makes sense?
• 4:56
  Speaker 1: I think it does make sense, make sense for But
• 4:58
  Speaker 1: I think so too.
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  Speaker 2: I think that most of us have this belief in
• 5:02
  Speaker 2: the back of our head that as our income increases,
• 5:06
  Speaker 2: we should keep our spending at exactly the same rate.
• 5:09
  Speaker 2: And we even have phrases that are thrown around handily
• 5:12
  Speaker 2: by people. You know, treat your raise like you didn't
• 5:15
  Speaker 2: get it and put it in the bank. I go listen.
• 5:17
  Speaker 2: Of course, you should save a little bit more. Of
• 5:19
  Speaker 2: course you should invest a little bit more, And of
• 5:21
  Speaker 2: course you should spend a little bit more, because what
• 5:25
  Speaker 2: is the point of working as hard as you do,
• 5:28
  Speaker 2: or of negotiating a raise or starting a side business
• 5:31
  Speaker 2: if you're not actually improving your quality of life? And
• 5:34
  Speaker 2: if that means you love a beautiful coat like that,
• 5:36
  Speaker 2: that coat you're wearing, that looks great, I love that.
• 5:39
  Speaker 2: I wish I could be wearing a coat right now.
• 5:41
  Speaker 2: I love the cold. Okay, whether it's clothes fantastic, whether
• 5:45
  Speaker 2: it's travel, whether it's convenience or anything.
• 5:48
  Speaker 1: Yeah.
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  Speaker 2: Yeah, we should spend more on the things we love,
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  Speaker 2: and we should be making sure that we're also saving
• 5:55
  Speaker 2: and investing as well.
• 5:57
  Speaker 1: Okay, that makes it feel really good. And it's true,
• 6:00
  Speaker 1: you're right because I am big on yes, have an
• 6:03
  Speaker 1: eye to the future, but I also really want to
• 6:04
  Speaker 1: be enjoying the life that I'm having now. And it's
• 6:08
  Speaker 1: nice to reward yourself when you're working harder. So that
• 6:11
  Speaker 1: makes me feel good. But to ask the first question,
• 6:16
  Speaker 1: and this is a question that I've been asked a
• 6:18
  Speaker 1: lot by my listeners, is what is this poor money mindset?
• 6:23
  Speaker 1: Where do you think that stems from? Is this through
• 6:25
  Speaker 1: how we were raised. Is this around the language that
• 6:28
  Speaker 1: we've heard from our parents. Because there's certain people that
• 6:31
  Speaker 1: you meet where it's all about it's almost like they're
• 6:34
  Speaker 1: constantly in damaged control when it comes to money. And
• 6:37
  Speaker 1: then there's other people that you meet and they just
• 6:38
  Speaker 1: seem to always they're so they're not stressed about money,
• 6:43
  Speaker 1: and then it seems that they just come into money
• 6:45
  Speaker 1: so much easier. So is it mindset? Do you think
• 6:48
  Speaker 1: part of it?
• 6:49
  Speaker 2: Mindset plays a huge rule. That's one of the reasons
• 6:52
  Speaker 2: that people are attracted to what I talk about, because
• 6:55
  Speaker 2: of course I'm going to talk about investing and compound
• 6:58
  Speaker 2: interest and all those things, the nuts and bolts, but
• 7:03
  Speaker 2: we cannot neglect money psychology. How do we feel about
• 7:07
  Speaker 2: our money? How do we think about our money? And
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  Speaker 2: that's a lot of where I originally studied was social psychology.
• 7:14
  Speaker 2: So two people can have the exact same financial situation
• 7:20
  Speaker 2: and I'll ask him how do you feel about it?
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  Speaker 2: One will be like I don't have enough, like I'm
• 7:24
  Speaker 2: worried every day of my life, and the other goes,
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  Speaker 2: I'm rich. And that is not about the numbers, that's
• 7:30
  Speaker 2: about how we feel. So first off, very important to
• 7:34
  Speaker 2: know that the way you feel about money is highly
• 7:38
  Speaker 2: uncorrelated to the amount you've got in the bank. Okay,
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  Speaker 2: I'm gonna say it again because I want everyone to
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  Speaker 2: hear it. The way you feel about money is highly
• 7:45
  Speaker 2: uncorrelated to the amount you've got in the bank. That
• 7:49
  Speaker 2: means so many of us believe if I just had
• 7:52
  Speaker 2: five thousand more, fifty thousand more, five hundred thousand dollars more,
• 7:56
  Speaker 2: I would finally feel good about money. I would finally
• 7:59
  Speaker 2: stop war bad news. That's never gonna happen. Okay. I
• 8:03
  Speaker 2: talk to folks on my podcast all the time. They
• 8:05
  Speaker 2: make fifty grand a year, they make five hundred grand.
• 8:07
  Speaker 2: I talk to folks who have eight million dollars and
• 8:09
  Speaker 2: they still worry about money. They're still comparison shopping for blueberries.
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  Speaker 2: It's insane. But here's what it means. In order to
• 8:19
  Speaker 2: get better with money, you got to do two things.
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  Speaker 2: Number one, you got to know your numbers, and number two,
• 8:24
  Speaker 2: you have to actively work on your money psychology. So
• 8:27
  Speaker 2: this is where you asked, you know what causes a
• 8:31
  Speaker 2: poor money mindsetting? How we were raised is huge. I
• 8:36
  Speaker 2: always on my podcast when I speak to couples it's
• 8:38
  Speaker 2: always couples. I will ask them about their childhood. It's
• 8:42
  Speaker 2: so obvious. There are certain phrases that immediately signal somebody
• 8:46
  Speaker 2: grew up poor or somebody grew up wealthy, but they
• 8:49
  Speaker 2: don't want to admit they were wealthy. There's certain phrases
• 8:53
  Speaker 2: that are very obvious. So how we were raised is huge,
• 8:56
  Speaker 2: and we carry those memories from our parents saying we
• 9:00
  Speaker 2: can't afford it. We carry that forty years later, people
• 9:03
  Speaker 2: are still repeating the same thing, even though they might
• 9:05
  Speaker 2: have a lot of money. Next, who we surround ourselves
• 9:09
  Speaker 2: with and what we surround ourselves with, so that would
• 9:13
  Speaker 2: be the things we buy the people around us. Those
• 9:16
  Speaker 2: are huge predictors of how our money mindset works. And
• 9:19
  Speaker 2: the third is our behavior. How we behave actually affects
• 9:24
  Speaker 2: our mindset, and often people don't see the connection there,
• 9:27
  Speaker 2: but it's true.
• 9:28
  Speaker 1: Yeah, yeah, well definitely. I mean I've got, for example,
• 9:31
  Speaker 1: I've got a friend of mine and she I'm always
• 9:35
  Speaker 1: trying to encourage her to go off on her own
• 9:36
  Speaker 1: and do her own business. She's got all the resources
• 9:38
  Speaker 1: at her fingertips, she's very good at what she does.
• 9:41
  Speaker 1: She would just it's a no brainer. That she would
• 9:44
  Speaker 1: kill it. She's had so many people in the industry
• 9:46
  Speaker 1: say you should be freelancing, you should go out on
• 9:48
  Speaker 1: your own. I'd hire you, hire you, But she's got
• 9:51
  Speaker 1: this these blocks. And I spoke to her once and
• 9:54
  Speaker 1: I was like, what are you like, what's stopping you?
• 9:56
  Speaker 1: You tripled your income, no brainer, and she just says,
• 10:02
  Speaker 1: you know, I've got this massive fear. It's massive fear.
• 10:04
  Speaker 1: And I said, we where do you think it's coming from?
• 10:05
  Speaker 1: And she says, well, you know, my parents are always
• 10:08
  Speaker 1: telling me, like, don't take the risk. A secure job
• 10:10
  Speaker 1: is better than security is everything. Security is everything. So
• 10:14
  Speaker 1: she's just even you know, she's got all the skills,
• 10:17
  Speaker 1: she's got all the knowledge, but this deep seeded I
• 10:21
  Speaker 1: need the security off an employment and she just won't
• 10:24
  Speaker 1: do it.
• 10:25
  Speaker 2: Yeah. I hear that all the time. I have friends
• 10:28
  Speaker 2: in similar situations, and I think, eventually, you know, you
• 10:31
  Speaker 2: set the example. And I've you know, started my own
• 10:33
  Speaker 2: business running for twenty years now, and we can be examples,
• 10:38
  Speaker 2: we can talk about it, but ultimately, nobody will make
• 10:40
  Speaker 2: a massive life change until they themselves are ready to
• 10:43
  Speaker 2: do it. And that's true of fitness, relationships, money, any
• 10:47
  Speaker 2: of the big things in life. And you know when
• 10:51
  Speaker 2: I talk, for example, to people about money and they
• 10:55
  Speaker 2: are worried about money. This is one of the most
• 10:57
  Speaker 2: common feelings about money. Worry. The world starts off with
• 11:01
  Speaker 2: am I gonna have enough? That lasts for life. By
• 11:04
  Speaker 2: the time people turn forty, which is when they actually
• 11:07
  Speaker 2: tend to get interested in money, not just out of curiosity.
• 11:12
  Speaker 2: It's the next worry, which is is it too late?
• 11:16
  Speaker 2: That's what that morphs into. And then what about my
• 11:20
  Speaker 2: kids if they have children, That's what that So basically
• 11:23
  Speaker 2: we go through life worried our entire lives. That sucks.
• 11:27
  Speaker 2: What a horrible way to go through life. And so
• 11:29
  Speaker 2: I go, look, if we're gonna choose how we feel,
• 11:31
  Speaker 2: why don't we just choose to feel awesome? Why don't
• 11:33
  Speaker 2: we say why don't we reframe it into things like
• 11:36
  Speaker 2: nobody taught me about money, but I'm going to learn
• 11:40
  Speaker 2: it on my own with the help of some great teachers.
• 11:43
  Speaker 1: I love this.
• 11:43
  Speaker 2: If we start at forty five, why don't we say, gosh,
• 11:47
  Speaker 2: I sure wish I had started twenty five years ago,
• 11:49
  Speaker 2: but I didn't. So the best thing I can do
• 11:51
  Speaker 2: is start today. These are the ways we can start
• 11:54
  Speaker 2: to use language to reframe our experience. And the fact
• 11:58
  Speaker 2: is all we can do is start where we are
• 12:00
  Speaker 2: today and then get really good at money. And I
• 12:03
  Speaker 2: think that is a beautiful way to set the foundation
• 12:05
  Speaker 2: for a rich life.
• 12:06
  Speaker 1: Yeah, that's so true. And I think that's so interesting
• 12:09
  Speaker 1: how you're talking about it, because a lot of how
• 12:11
  Speaker 1: you word it is how I tell people to word
• 12:13
  Speaker 1: that when they're trying to fix their self esteement, when
• 12:16
  Speaker 1: they're trying to work on their confidence. It's very much
• 12:18
  Speaker 1: the same thing. It's you know, how do you change
• 12:20
  Speaker 1: your language around it step by step? You know, how
• 12:23
  Speaker 1: do you find a statement that feels more comfortable, and
• 12:26
  Speaker 1: then when you're in that comfortable statement, you go for
• 12:27
  Speaker 1: the next you know.
• 12:29
  Speaker 2: Yeah, I wish I had done that myself. I was.
• 12:35
  Speaker 2: I was always a skinny guy and I'm Indian, and
• 12:40
  Speaker 2: so in the culture I was raised in, we don't
• 12:43
  Speaker 2: I didn't really learn about physical fitness. It wasn't a
• 12:46
  Speaker 2: thing Like I didn't even know the word protein until
• 12:48
  Speaker 2: I was in my mid twenties. I'm not kidding. It
• 12:50
  Speaker 2: wasn't talked about. Yeah, and so, but I was very
• 12:52
  Speaker 2: academically driven. I was really good at school. Great, so
• 12:57
  Speaker 2: I would call myself a skinny Indian guy, like as
• 13:00
  Speaker 2: a joke, you know, it's like a punchline. And looking back,
• 13:03
  Speaker 2: I wish I hadn't said that. I wish I hadn't
• 13:06
  Speaker 2: used that language because in a way, it became a
• 13:09
  Speaker 2: self fulfilling prophecy. And when I got into my early
• 13:12
  Speaker 2: twenties and I wanted to learn how to put on
• 13:14
  Speaker 2: muscle and just improve right self development applied to physical fitness,
• 13:20
  Speaker 2: I ran up again. First of all, it's hard enough
• 13:23
  Speaker 2: to change your body in whatever form you want to
• 13:25
  Speaker 2: change it. But when you have an identity, which is
• 13:28
  Speaker 2: for me, was I'm just a skinny Indian guy. I
• 13:33
  Speaker 2: actually believed that's all I was that. And it's the
• 13:36
  Speaker 2: same as we talk about money. People say I'm not
• 13:39
  Speaker 2: good with money. No, there's nothing to do with being
• 13:42
  Speaker 2: good with money. It's a skill that you can learn,
• 13:44
  Speaker 2: like playing the piano or riding a bike or speaking English.
• 13:47
  Speaker 1: That's it's a skill. It's a skill. It's not a
• 13:49
  Speaker 1: trite in you.
• 13:50
  Speaker 2: Yeah, exactly. And so I had to go through my
• 13:53
  Speaker 2: own series of breakthroughs. It took a long time. I
• 13:56
  Speaker 2: had the help of a lot of great teachers and
• 13:58
  Speaker 2: trainers nutrition people who taught me basically how to take
• 14:02
  Speaker 2: all these ideas I had about myself break them down
• 14:05
  Speaker 2: because they were wrong. And that is one of the
• 14:08
  Speaker 2: craziest things that we all realize in our lives as adults.
• 14:11
  Speaker 2: Some of the ways we view the world are just
• 14:13
  Speaker 2: plain wrong. Some of the ways we view ourselves are
• 14:16
  Speaker 2: actually wrong, and it's so humbling. So anyway, I was humbled.
• 14:21
  Speaker 2: I went along my fitness journey learned it. And that's
• 14:23
  Speaker 2: why I have so much compassion for people who feel
• 14:26
  Speaker 2: overwhelmed and confused by money, because while I've always kind
• 14:30
  Speaker 2: of understood money intuitively fitness and all these other parts
• 14:34
  Speaker 2: of life, I had to learn it painstakingly. And when
• 14:37
  Speaker 2: I see people using those phrases, I feel that compassion
• 14:40
  Speaker 2: because I have used them.
• 14:41
  Speaker 1: Money isn't there, Yeah, yeah, you understand it. Okay, So
• 14:44
  Speaker 1: what would you What would you say to somebody who
• 14:48
  Speaker 1: has like they would like to start saving money. They
• 14:51
  Speaker 1: currently have just a nine to five job, They're not
• 14:54
  Speaker 1: really putting any money aside, they don't consider themselves good
• 14:58
  Speaker 1: with money, like you was say, how would they begin?
• 15:03
  Speaker 1: What would be the first steps that somebody would take.
• 15:08
  Speaker 2: The first. The first step is so easy, is just
• 15:10
  Speaker 2: to get learn the basic language of personal finance. Get educated.
• 15:15
  Speaker 2: When I speak to folks, the vast majority of people
• 15:19
  Speaker 2: have never read a single book about personal finance, point blank.
• 15:23
  Speaker 2: If you want to learn about any topic, read one book.
• 15:27
  Speaker 2: Read the best book now in money. It could be
• 15:29
  Speaker 2: my book, it could be any book you prefer. It's
• 15:31
  Speaker 2: up to you. But I will tell you that it's
• 15:34
  Speaker 2: quite shocking in fact, to recognize how disconnected we are
• 15:39
  Speaker 2: from money. Let me tell you some shocking numbers from
• 15:42
  Speaker 2: my own experience. I've been doing this for twenty years.
• 15:46
  Speaker 2: Percent of the people people of people who are in debt, right,
• 15:51
  Speaker 2: ninety percent of people do not know how much debt
• 15:54
  Speaker 2: they owe. Ninety five percent do not know when their
• 15:58
  Speaker 2: debt will be paid off. And here's the shocking one
• 16:00
  Speaker 2: of all. Nobody believes this, but you can hear it
• 16:02
  Speaker 2: on my podcast every week. Fifty percent of the people
• 16:06
  Speaker 2: I talk to do not know their income. What fifty
• 16:11
  Speaker 2: percent do not know their income? And you go, how
• 16:13
  Speaker 2: could that be? And it happens every single week on
• 16:15
  Speaker 2: my podcast. Sometimes it's one, sometimes it's both. You can
• 16:18
  Speaker 2: just hear them and the way that this comes out
• 16:22
  Speaker 2: is so shocking. So I ask them to fill out
• 16:24
  Speaker 2: a conscious spending plan. That's a little it's a simple
• 16:27
  Speaker 2: one pager. I put it together. You can download it
• 16:31
  Speaker 2: and you fill out your numbers, just the very basic
• 16:34
  Speaker 2: numbers in one page, and it shows you a different
• 16:37
  Speaker 2: way to look at your numbers, broken down into four categories. Okay,
• 16:41
  Speaker 2: and I have a way of doing this because it
• 16:43
  Speaker 2: kind of helps you benchmark how am I doing compared
• 16:46
  Speaker 2: to other people. On that form, I have a little
• 16:50
  Speaker 2: slot for you to put in your income. Fine, great,
• 16:52
  Speaker 2: your income tells me a lot about you, your lifestyle,
• 16:55
  Speaker 2: et cetera. So then I get a chance to talk
• 16:56
  Speaker 2: to them. I talk to them either in person or
• 16:59
  Speaker 2: on zoom, and I'll go, oh, that's very interesting. Income
• 17:02
  Speaker 2: could be seventy K two hundred and seventy K seven
• 17:05
  Speaker 2: hundred thousand, whatever the number is. I say, okay, interesting,
• 17:08
  Speaker 2: did you know that's how much you make? Fifty percent
• 17:11
  Speaker 2: of the time, they go no, why? Because we are
• 17:14
  Speaker 2: disconnected from our money. For most of us, the only
• 17:17
  Speaker 2: connection we have with money is I want to eat out,
• 17:20
  Speaker 2: I want to buy a round of drinks. I got
• 17:22
  Speaker 2: these bills. I guess I'll pay them. But we do
• 17:25
  Speaker 2: not zoom out to get a bird's eye view, and
• 17:28
  Speaker 2: we don't know what it means. If somebody says I
• 17:31
  Speaker 2: want a million dollars, I go, okay, cool, what does
• 17:33
  Speaker 2: that mean to you? They go, I don't know. My
• 17:36
  Speaker 2: mom told me that's a good number. What the hell
• 17:39
  Speaker 2: does a million dollars? Yeah, you need to know four
• 17:42
  Speaker 2: percent of one million? What does it provide you? What's
• 17:44
  Speaker 2: your safe withdrawal rate? You need to know the basic
• 17:47
  Speaker 2: language of money. And if you don't know this, get
• 17:50
  Speaker 2: a good book, get my book or others learn it,
• 17:52
  Speaker 2: and in one weekend you will be ahead of ninety
• 17:54
  Speaker 2: eight percent of other people.
• 17:56
  Speaker 1: Wow, that is wild that people don't even Yeah, and
• 18:01
  Speaker 1: it's crazy. I love it though avoidant.
• 18:04
  Speaker 2: Oh yeah, because why Because for all of us, money
• 18:08
  Speaker 2: is seen as a negative thing. And that is from childhood.
• 18:12
  Speaker 2: Our mom and dad told us mostly negative things about money.
• 18:15
  Speaker 2: We don't have enough, we can't afford that, we don't
• 18:17
  Speaker 2: get those kinds of things in our family. We're not
• 18:19
  Speaker 2: like those rich people, and on and on and on.
• 18:21
  Speaker 2: It is very rare that parents raise children with a
• 18:26
  Speaker 2: healthy relationship with money. We're obsessed with a healthy relationship
• 18:30
  Speaker 2: with food. Everyone's tiptoeing around what words they use. They
• 18:34
  Speaker 2: want to help their kids, and I applaud that that's great,
• 18:37
  Speaker 2: But we do not do the same with money. If anything,
• 18:40
  Speaker 2: we pass on a toxic relationship. We can't afford it.
• 18:43
  Speaker 2: It's never enough. Uh, I can't believe you're asking for more?
• 18:46
  Speaker 2: And and so what do kids do? They naturally learn
• 18:49
  Speaker 2: from that, they take it. They don't understand the money
• 18:52
  Speaker 2: part because the parents themselves don't understand it. Parents are
• 18:54
  Speaker 2: simply parroting what their parents said. And then they get
• 18:57
  Speaker 2: to be twenty five, thirty thirty five, and they have
• 19:01
  Speaker 2: never built a solid foundation because why why would they?
• 19:05
  Speaker 2: They think money is all negative, whereas I think it's possibility,
• 19:09
  Speaker 2: spontaneity and adventure.
• 19:11
  Speaker 1: Also, what is your Can you tell the audience your
• 19:14
  Speaker 1: book the book name so they can go in.
• 19:16
  Speaker 2: Yeah, the book is called I Will teach You to
• 19:18
  Speaker 2: be Rich And depending on you know, we have an
• 19:21
  Speaker 2: American version, we have we have lots of different versions
• 19:23
  Speaker 2: around the world. You can adapt it to your own needs.
• 19:26
  Speaker 2: But it's it's quite fun. In six weeks you get through,
• 19:30
  Speaker 2: you get your money totally automated, so you your money
• 19:33
  Speaker 2: comes in whether you're as an entrepreneur or you're paid
• 19:36
  Speaker 2: at your paycheck, it automatically flows where it wants to flow.
• 19:41
  Speaker 2: Your savings are on autopilot, investments are on autopilot. And
• 19:45
  Speaker 2: my favorite part, you get to identify the things you love.
• 19:49
  Speaker 2: I call them money dials because you can turn them up.
• 19:52
  Speaker 2: So most common money dial is well, actually, let me
• 19:55
  Speaker 2: let me ask you. What is the thing you love
• 19:59
  Speaker 2: to spend money on? If you could spend tons more money,
• 20:03
  Speaker 2: you would do it. What's the thing you love in
• 20:05
  Speaker 2: your life? Exactly? Okay, perfect, So this is a great answer.
• 20:08
  Speaker 2: Number one is food. That's the most common answer. People
• 20:12
  Speaker 2: love eating out. Number two's travel, and then you know
• 20:15
  Speaker 2: number three's health and wellness, and then there's a whole
• 20:17
  Speaker 2: bunch of other ones. What if you could quadruple you're
• 20:22
  Speaker 2: spending on travel, what would it look and feel like
• 20:25
  Speaker 2: for you?
• 20:26
  Speaker 1: I would be I'd love to do a trip every
• 20:29
  Speaker 1: two months overseas, whether it be close to Australia or
• 20:33
  Speaker 1: far that would be the dream.
• 20:35
  Speaker 2: Where would you go?
• 20:36
  Speaker 1: I would mix it between. I love going to Southeast Asia,
• 20:39
  Speaker 1: I would love to go to new places. I'd love
• 20:42
  Speaker 1: to go to India, I'd love to go to Turkey, Europe,
• 20:45
  Speaker 1: South America. My parents are South American, Okay.
• 20:49
  Speaker 2: And what would you do differently in your travel if
• 20:53
  Speaker 2: you were quadrupling the amount you're spending?
• 20:56
  Speaker 1: Well, if I was traveling more often, what I love
• 21:00
  Speaker 1: to do is when I do a trip, go to
• 21:03
  Speaker 1: less places and spend more time in one city and
• 21:06
  Speaker 1: really like live in that city. That's what I love
• 21:09
  Speaker 1: to do. So I would probably, yeah, because I have
• 21:14
  Speaker 1: like a because my job is quite flexible and it's
• 21:16
  Speaker 1: very much online. I would love to, you know, go somewhere,
• 21:20
  Speaker 1: be there for a week or two, work from there,
• 21:23
  Speaker 1: enjoy the city instead of you know, sometimes when we
• 21:26
  Speaker 1: do like euro trips, you go and you're bouncing around
• 21:28
  Speaker 1: to every city three days, three days there. So I
• 21:30
  Speaker 1: would do it maybe like that.
• 21:34
  Speaker 2: Yeah, you know what I the thing I love? I
• 21:37
  Speaker 2: love this question, Right, what's the thing you love? And
• 21:40
  Speaker 2: if you could quadruple you're spending, what would it look
• 21:42
  Speaker 2: and feel like? That's a money dial? You could turn
• 21:44
  Speaker 2: it up or down like a dial. And the thing
• 21:47
  Speaker 2: I noticed as I was asking you that you're smile.
• 21:50
  Speaker 2: You were smiling because we all love talking about our
• 21:55
  Speaker 2: money dial, right, we love it, And no matter what
• 21:59
  Speaker 2: your money dial is, every single person knows it, they
• 22:01
  Speaker 2: have at least one and they have thought about it intently.
• 22:05
  Speaker 2: So oftentimes people will talk about quantity, so a very
• 22:09
  Speaker 2: common answer will be like, I'd probably eat out four
• 22:12
  Speaker 2: times a week. Hahaha. That's kind of like a you know,
• 22:15
  Speaker 2: it's a very simple way of looking at the world.
• 22:18
  Speaker 2: But you can be multi dimensional about your money. So
• 22:22
  Speaker 2: if you love to travel, I love what you said.
• 22:26
  Speaker 2: You could travel more frequently, you could travel differently in
• 22:29
  Speaker 2: terms of your length of stay. You could bring friends
• 22:33
  Speaker 2: or family with you. You could make it more luxurious
• 22:37
  Speaker 2: and always have a car, waiting or business class or
• 22:39
  Speaker 2: first whatever. You could choose your travel based on your
• 22:45
  Speaker 2: favorite restaurant reservation, if you were a true footie. There's
• 22:48
  Speaker 2: so many things you could do, right. But the key
• 22:51
  Speaker 2: here is I want people to spend extravagantly on the
• 22:55
  Speaker 2: things they love as long as they cut costs mercilessly
• 22:59
  Speaker 2: on the things they don't. So we always start with
• 23:03
  Speaker 2: what do you love and what if you could actually
• 23:05
  Speaker 2: spend more, which people are like, oh my god, this
• 23:07
  Speaker 2: money guy's actually talking about me spending more. That's amazing. Yeah,
• 23:12
  Speaker 2: And then in the book I Will Teach You to
• 23:14
  Speaker 2: be Rich, we talk about how to set your system
• 23:17
  Speaker 2: up so that your money can automatically make that possible.
• 23:21
  Speaker 1: I love that. I can't wait for this book. I'm
• 23:23
  Speaker 1: so excited. I'm really pumped about it. So Okay, one
• 23:27
  Speaker 1: thing that I want to circle back to is that
• 23:31
  Speaker 1: you were just talking about a lot of people are
• 23:34
  Speaker 1: raised with, you know, this poor money mindset or this
• 23:36
  Speaker 1: kind of like money is negative. What would your advice
• 23:39
  Speaker 1: be to parents who might not be making a lot
• 23:41
  Speaker 1: of money, but their language around money to their children
• 23:45
  Speaker 1: and to themselves as well, but in the household.
• 23:50
  Speaker 2: Well, first I would ask what message are you communicating
• 23:56
  Speaker 2: about money today? That's the first question. And parents never
• 24:00
  Speaker 2: give an honest answer to this. This is what their
• 24:03
  Speaker 2: answer always goes like this. They go, well, I would
• 24:06
  Speaker 2: teach them that they could do whatever they want. I said,
• 24:08
  Speaker 2: let me stop you right there. I didn't ask what
• 24:11
  Speaker 2: you would teach them, I asked what are you teaching
• 24:14
  Speaker 2: them today? And this is a much more somber conversation
• 24:19
  Speaker 2: because when parents reflect on it, they often realize that
• 24:23
  Speaker 2: they are either teaching them a negative message by saying
• 24:27
  Speaker 2: things like put that down we can't afford it, or
• 24:29
  Speaker 2: more commonly, they're teaching them no message at all. Yeah,
• 24:33
  Speaker 2: so you're leaving your kids defenseless in the world to
• 24:37
  Speaker 2: be subject to the whims of a capitalistic culture that's
• 24:40
  Speaker 2: going to simply take them for everything they have. You
• 24:42
  Speaker 2: can't do that, can't put your kids out in the
• 24:44
  Speaker 2: world without knowing anything. So that's just step one. Just
• 24:47
  Speaker 2: take an inventory, don't judge yourself. It's okay, you can
• 24:51
  Speaker 2: always change what you've taught them, but let's get honest.
• 24:54
  Speaker 2: The next is what message do we want to communicate
• 24:57
  Speaker 2: to our kids? And that could be one of possibility
• 25:00
  Speaker 2: of abundance, of the fact that you can live a
• 25:02
  Speaker 2: rich life even if you don't have a lot of money,
• 25:05
  Speaker 2: which is totally true. And then there are certain specific
• 25:10
  Speaker 2: exercises that I'm gonna recommend for parents. So let me
• 25:12
  Speaker 2: give you three, depending on how old kids are. If
• 25:16
  Speaker 2: the kids are very young, a lot of parents have
• 25:18
  Speaker 2: this invisible script or this deeply held belief that we
• 25:22
  Speaker 2: shouldn't talk about money because like, that's for adults. Wrong.
• 25:26
  Speaker 2: That assumes that money is a bad thing you need
• 25:28
  Speaker 2: to protect children from. Not at all. Money's a beautiful thing.
• 25:32
  Speaker 2: That you need to involve kids in. So if they're
• 25:35
  Speaker 2: very young, pull them up to the chair and say, hey,
• 25:38
  Speaker 2: we're gonna pay our mortgage. Our mortgage is the thing
• 25:40
  Speaker 2: that allows us to have a roof over our head
• 25:43
  Speaker 2: and eat this delicious food. Can you help me push
• 25:45
  Speaker 2: this button? Yay, right, clap, give them a big hug. Amazing.
• 25:50
  Speaker 2: Get the little ones involved, yea. As they get a
• 25:53
  Speaker 2: little bit older, get them involved in the family decisions.
• 25:57
  Speaker 2: Things like here's fifty bucks. We have to go to
• 26:00
  Speaker 2: the grocery store and get all of these things. How
• 26:03
  Speaker 2: can we do it? Now, they're gonna learn things like
• 26:06
  Speaker 2: they're gonna buy a bunch of stuff and not count
• 26:08
  Speaker 2: it up. They're gonna learn, they're gonna forget about taxes.
• 26:11
  Speaker 2: They're gonna learn. Let them make mistakes, it's okay. Let
• 26:15
  Speaker 2: them have an uncomfortable moment at the cash register. That's
• 26:18
  Speaker 2: how they learn. Then finally, by the time they are teenagers,
• 26:22
  Speaker 2: like older teenagers, by that point of course, they should
• 26:26
  Speaker 2: have planned things like family dinner. We have seventy bucks
• 26:30
  Speaker 2: for the family dinner. Where would you like to go?
• 26:32
  Speaker 2: And it's got to include tax tip all of it.
• 26:34
  Speaker 2: They choose the whole thing. Then finally, by the end,
• 26:38
  Speaker 2: by the time they're sixteen seventeen, they should have planned
• 26:42
  Speaker 2: something larger, ideally something like a family vacation. Here's three
• 26:47
  Speaker 2: thousand dollars or however much, whatever it is for you.
• 26:51
  Speaker 2: Where are we gonna go plan it all out? They're
• 26:53
  Speaker 2: gonna forget about things like tips or whatever. This is
• 26:58
  Speaker 2: how they learn. By the time the kids leave the household,
• 27:01
  Speaker 2: they are well versed in phantom costs, in visible costs
• 27:05
  Speaker 2: that people don't think about. They're well versed in trade offs. Well,
• 27:08
  Speaker 2: we could go on this trip for five days, where
• 27:09
  Speaker 2: we could stay at a nicer place, but it can
• 27:11
  Speaker 2: only be for three days. That is how kids go
• 27:13
  Speaker 2: into the world, fully armed, fully knowing how money works.
• 27:18
  Speaker 1: Yeah, and I think there's a massive difference between being
• 27:20
  Speaker 1: fearful around money versus understanding what your income is, what
• 27:25
  Speaker 1: you can be spending and you know, because I think
• 27:28
  Speaker 1: people think, oh, well, if I don't have a lot
• 27:30
  Speaker 1: of money, then I have a bad relationship with money.
• 27:32
  Speaker 1: But it doesn't have to be like that.
• 27:34
  Speaker 2: No way, you could be very forthright with let's say
• 27:37
  Speaker 2: you don't have a lot of money. Of course, kids
• 27:39
  Speaker 2: are gonna want everything. They don't understand trade offs, They
• 27:42
  Speaker 2: don't even understand how money works. That's your job as
• 27:44
  Speaker 2: a parent. So what you can say instead of we
• 27:47
  Speaker 2: can't afford it, you could say, we choose not to
• 27:50
  Speaker 2: spend our money on that. You could say that's not
• 27:53
  Speaker 2: part of our conscious spending plan. Which, by the way,
• 27:56
  Speaker 2: you bring them home and you can take the conscious
• 27:58
  Speaker 2: spending plan. You can get it from myself, and you
• 28:00
  Speaker 2: can create a much simpler version for kids so that
• 28:04
  Speaker 2: they can understand it and encourage them. He type in
• 28:06
  Speaker 2: this number, what happens? Okay, Again, they don't need to
• 28:09
  Speaker 2: understand every mathematical formula, but they can see if I
• 28:12
  Speaker 2: type a number in here, that number change is there.
• 28:16
  Speaker 2: That's enough. Honestly, that's enough. So there's so many phrases
• 28:19
  Speaker 2: we can use. The key is just realizing we are
• 28:22
  Speaker 2: sending messages about money, whether we like it or not,
• 28:26
  Speaker 2: so we better acknowledge that, and we could choose what
• 28:29
  Speaker 2: type of money messages we see.
• 28:30
  Speaker 1: Yeah, that's right. And I feel like when you feel
• 28:33
  Speaker 1: like your financial decisions are a choice, I think a
• 28:36
  Speaker 1: lot of the time we feel like we have no power.
• 28:39
  Speaker 1: So we're in this powerless situation and that's I think
• 28:42
  Speaker 1: why we're so avoidant as well. We don't want to
• 28:44
  Speaker 1: think about it, we want to talk about it. We
• 28:46
  Speaker 1: don't want to look at how much we make or
• 28:47
  Speaker 1: how much we spend. You know, so many I want
• 28:50
  Speaker 1: I think two years ago, I once sat down and
• 28:52
  Speaker 1: I think I need to look at my bank statements
• 28:54
  Speaker 1: because I have no idea what I'm even spending money on,
• 28:58
  Speaker 1: but it's just all going out. And I think it
• 29:00
  Speaker 1: was really interesting just to look back and just be like, Okay, okay,
• 29:04
  Speaker 1: I'm actually having some awareness around my spending, because.
• 29:08
  Speaker 2: I think that's really savvy. I think I think that's
• 29:11
  Speaker 2: one of the most important parts in the early stages
• 29:15
  Speaker 2: of taking control of your money is to say, you
• 29:18
  Speaker 2: know what, until now, I haven't been too active of
• 29:22
  Speaker 2: a participant in my personal finances, but I'm going to.
• 29:27
  Speaker 2: And the first step is really again, just take an inventory,
• 29:29
  Speaker 2: non judgmentally. You might feel like you're gonna cringe. Oh
• 29:33
  Speaker 2: my god, I can't believe I did that. You start
• 29:34
  Speaker 2: to beat yourself up. Not helpful. What I always tell people,
• 29:38
  Speaker 2: That's why I give them the conscious spending plans and
• 29:40
  Speaker 2: just write these numbers down. Don't even worry It does
• 29:43
  Speaker 2: not mean you're a good person or a bad person
• 29:45
  Speaker 2: or any It's just numbers. Like a scientist, Let's take
• 29:48
  Speaker 2: the numbers and now let's figure out what they mean.
• 29:51
  Speaker 2: I also think a lot of us don't really know
• 29:53
  Speaker 2: what the numbers actually mean. You know, Okay, I made
• 29:57
  Speaker 2: seventy five thousand or one hundred and eighty thousand, what
• 30:00
  Speaker 2: does that mean? And especially in expensive countries, you'll hear
• 30:05
  Speaker 2: people saying like they'll say they have quite a high income,
• 30:09
  Speaker 2: but it doesn't feel like it. Where does it all go?
• 30:12
  Speaker 2: And I go, well, that is because you haven't looked
• 30:16
  Speaker 2: at it from the perspective of four key numbers. If
• 30:20
  Speaker 2: you know these four key numbers, then you can quickly
• 30:23
  Speaker 2: see am I spending too much here or too little?
• 30:26
  Speaker 2: And that makes it much more control.
• 30:28
  Speaker 1: Yeah, what are these four K numbers?
• 30:32
  Speaker 2: Okay? So these are the four numbers I put in
• 30:33
  Speaker 2: the Conscious Spending plan, And this just tells you where
• 30:37
  Speaker 2: your money should go. Okay, it's very simple. I'll give
• 30:40
  Speaker 2: you the numbers right now. So let's talk about your
• 30:44
  Speaker 2: net pay that is after taxes. So you pay your
• 30:47
  Speaker 2: taxes and this is what's left. The first category is
• 30:51
  Speaker 2: fixed costs, that's your rent and mortgage, car payment, any
• 30:56
  Speaker 2: student loan debt, any of that things that are fixed
• 30:59
  Speaker 2: and you have to pay them every month. Fifty to
• 31:02
  Speaker 2: sixty percent of take home pay is a good guy? Come, okay?
• 31:07
  Speaker 2: Fifty to sixty percent. The next would be uh savings,
• 31:13
  Speaker 2: So this is savings like for an emergency fund, or
• 31:15
  Speaker 2: it could be saving for a house, even saving for
• 31:17
  Speaker 2: a vacation. Five to ten percent is a good number.
• 31:21
  Speaker 2: Of course, the higher the better. Next category, investments. This
• 31:25
  Speaker 2: is where the real wealth is created right here in
• 31:28
  Speaker 2: this one category, five to ten percent of take home pay.
• 31:32
  Speaker 2: Of course, the higher the better, Okay, And I really
• 31:34
  Speaker 2: want to highlight that because most people do not have
• 31:37
  Speaker 2: a number for savings every month, do not have a
• 31:39
  Speaker 2: number for investment. That is where true wealth is created.
• 31:42
  Speaker 2: That is the place you've got to highlight. And then finally,
• 31:45
  Speaker 2: my favorite number of all is the guilt free spending number.
• 31:50
  Speaker 2: This is going out, restaurants, travel, beautiful clothes, gifts, anything
• 31:56
  Speaker 2: you want guilt free. Because you already hit your other
• 31:59
  Speaker 2: three numbers, and this number twenty to thirty five percent
• 32:03
  Speaker 2: of take home pay. If you hit those numbers in
• 32:07
  Speaker 2: general terms, you're doing really well, and once you know that,
• 32:11
  Speaker 2: you can dial them up or dial them down, but
• 32:14
  Speaker 2: at least you have a basic structure.
• 32:16
  Speaker 1: I love that. Okay, I'm so excited to read your book.
• 32:18
  Speaker 1: You've got no idea. I'm like wanting to get from
• 32:21
  Speaker 1: that all these things. But no, that's great and it's
• 32:23
  Speaker 1: really good to look at that. Okay. When it comes
• 32:26
  Speaker 1: to investing, Let's say it's someone like myself. I've never
• 32:30
  Speaker 1: never invested money in anything.
• 32:34
  Speaker 2: Why not, by the way, lack of education.
• 32:37
  Speaker 1: Around investing, not knowing where to start, and I've got
• 32:41
  Speaker 1: money put aside, and I've always been saying I'm gonna
• 32:44
  Speaker 1: I want to invest this money. This is kind of
• 32:45
  Speaker 1: money that I want to invest.
• 32:46
  Speaker 2: So I've got it's just sitting there. Oh this is
• 32:49
  Speaker 2: breaking there, Oh my god, it's this is so painful
• 32:54
  Speaker 2: for me because for me right now, I see like
• 32:56
  Speaker 2: I see compound interest numbers floating in front of my eyes,
• 32:59
  Speaker 2: and I see like a heart with an arrow through it.
• 33:02
  Speaker 2: Just pure heartbreak for me.
• 33:03
  Speaker 1: But we'll fix it.
• 33:04
  Speaker 2: We'll fix it, Okay. Toxic.
• 33:05
  Speaker 1: So it's kind of and it's it's not even fear.
• 33:08
  Speaker 1: I want to but it's just I don't know where
• 33:11
  Speaker 1: to start. I've got no idea. The most I've ever
• 33:14
  Speaker 1: done is gotten one of those investing apps where you
• 33:16
  Speaker 1: round up your spent. But even then I wasn't really
• 33:20
  Speaker 1: I just kind of wasn't paying attention to it. No
• 33:22
  Speaker 1: money was going in, so I kind of just gave
• 33:24
  Speaker 1: up on that, and that's kind of where I am.
• 33:26
  Speaker 1: So it's really it comes down to not knowing where
• 33:29
  Speaker 1: to begin.
• 33:31
  Speaker 2: Okay, So there's good news and even better.
• 33:36
  Speaker 1: News right right where should we start?
• 33:40
  Speaker 2: Okay? The good news is that regardless of whatever country
• 33:46
  Speaker 2: you are in, there are amazing guides for investing, So Australia, America, Canada,
• 33:55
  Speaker 2: every everywhere that everyone's listening, there are amazing guides, whether
• 33:59
  Speaker 2: my book I Will Teach You to Be Rich or
• 34:01
  Speaker 2: other great books. The even better news is that moving
• 34:06
  Speaker 2: beyond the mechanics of how to invest, when you invest
• 34:10
  Speaker 2: consistently every single month, that means automatically you're not sending
• 34:15
  Speaker 2: a check, you're not even logging into an app. You
• 34:17
  Speaker 2: set it up and the money is automatically taken out
• 34:20
  Speaker 2: and properly invested without you being involved. That is how
• 34:24
  Speaker 2: true wealth is created. One of the most shocking moments
• 34:29
  Speaker 2: on the on the episodes of my podcast where I
• 34:31
  Speaker 2: speak to these couples is I will I have all
• 34:34
  Speaker 2: their numbers in front of me and they reveal everything
• 34:36
  Speaker 2: and I share it on the episode. How much they make,
• 34:39
  Speaker 2: where they spend their money, how much debt, everything, and
• 34:43
  Speaker 2: I will show them, this is how much money you're
• 34:45
  Speaker 2: going to have. Now you can calculate it quite easily.
• 34:49
  Speaker 2: It's very easy to know how much you're gonna have
• 34:51
  Speaker 2: at age forty fifty, sixty, seventy ninety. It's easy. They
• 34:56
  Speaker 2: are shocked. Sometimes they realize, yes, that's not enough, like
• 35:02
  Speaker 2: at all. They realize that if they don't change something,
• 35:04
  Speaker 2: they're going to be living on about thirty five thousand
• 35:07
  Speaker 2: dollars a year. And that is a very very stark moment.
• 35:11
  Speaker 2: It's I mean, they'll often start crying realizing the cost
• 35:15
  Speaker 2: of what they have done. On the other hand, there
• 35:19
  Speaker 2: are many couples who have been fighting about freaking broccoli
• 35:25
  Speaker 2: at the grocery store. They've been fighting for fifteen years.
• 35:28
  Speaker 2: I can't believe you've got the pre cut broccoli. That's
• 35:32
  Speaker 2: not the kind of person that we are. And I
• 35:34
  Speaker 2: point out with math, they are going to have five
• 35:38
  Speaker 2: point eight million dollars by the time they're sixty two,
• 35:41
  Speaker 2: and they just look at each other and you can
• 35:43
  Speaker 2: see it on YouTube. You can see their face. They
• 35:46
  Speaker 2: realize we have been fighting over a three dollars vegetable
• 35:51
  Speaker 2: for fifteen years, and we are multi multi millionaires. We
• 35:56
  Speaker 2: just need time. So I will tell you the mechanics
• 36:00
  Speaker 2: of how to invest. But I just wanted to share
• 36:02
  Speaker 2: that because, yeah, we have the ability to control our future,
• 36:07
  Speaker 2: and it gets me excited when I see people taking
• 36:10
  Speaker 2: that opportunity.
• 36:12
  Speaker 1: I'm so excited.
• 36:14
  Speaker 2: So let me just tell you the mechanics very quickly.
• 36:16
  Speaker 2: I'll give you kind of high level and again you
• 36:18
  Speaker 2: can adapt it to any country. I'll tell you how
• 36:22
  Speaker 2: my investments work. When I am paid, I have some
• 36:26
  Speaker 2: money go into a pre tax account. We have a
• 36:28
  Speaker 2: four to oh one K in the US, many other
• 36:30
  Speaker 2: people have an equivalent thing, so money is automatically taken
• 36:33
  Speaker 2: out and sent to that account. Think of it like
• 36:36
  Speaker 2: a room in a house that each room has a
• 36:41
  Speaker 2: specific purpose. A bedroom is to sleep in. My four
• 36:44
  Speaker 2: oh one K is to invest retirement money in Okay,
• 36:48
  Speaker 2: and that happens automatically. Then after my taxes are taken out,
• 36:53
  Speaker 2: I have more money sent to a different account. Again,
• 36:57
  Speaker 2: that money is invested. Now, what what is an investment?
• 37:00
  Speaker 2: Just to give you a very quick high level, it
• 37:02
  Speaker 2: basically means you are buying shares of a company. Please note,
• 37:07
  Speaker 2: everybody thinks investing is picking individual stocks like Google, Microsoft. No,
• 37:13
  Speaker 2: that's not investing. That is not investing. Real investing is
• 37:17
  Speaker 2: picking a low cost, long term series of stocks called
• 37:24
  Speaker 2: something like an index fund.
• 37:25
  Speaker 1: Okay.
• 37:26
  Speaker 2: An index fund basically allows you to buy like hundreds
• 37:29
  Speaker 2: of stocks all in the play. Okay, So you're not
• 37:32
  Speaker 2: trying to pick It's like you're not trying to go
• 37:34
  Speaker 2: to a horse race and pick the winning horse. You're
• 37:36
  Speaker 2: buying all the horses, okay. And also we're not buying
• 37:40
  Speaker 2: a freaking horse race. We're buying the best companies in
• 37:42
  Speaker 2: the world. So, but this is very important. A lot
• 37:45
  Speaker 2: of people feel overwhelmed because they think they have to
• 37:47
  Speaker 2: learn what pe ratios are and sit there and track
• 37:51
  Speaker 2: all these individual stocks. No, you don't need to do
• 37:53
  Speaker 2: that at all. You can even pick a fund that
• 37:57
  Speaker 2: is very inexpensive, and all you need to know is
• 38:00
  Speaker 2: what year you're going to retire in. So, if you
• 38:02
  Speaker 2: were going to retire in let's say twenty and sixty.
• 38:05
  Speaker 2: There's a fund called Vanguard twenty sixty or Fidelity twenty
• 38:10
  Speaker 2: and sixty. You pick that fund. It's one fund. It
• 38:13
  Speaker 2: automatically is diversified and as you get older it becomes
• 38:17
  Speaker 2: a little bit more conservative and that's all you need
• 38:19
  Speaker 2: to do. It's so much simpler than people.
• 38:22
  Speaker 1: Yeah, yeah, definitely because we so in Australia for retirement,
• 38:27
  Speaker 1: we've got this thing where it's called superannuation and the
• 38:31
  Speaker 1: same thing. Yeah, so the employer has to put a
• 38:34
  Speaker 1: but the employer does it. It's like you have to
• 38:36
  Speaker 1: put aside an extra ten point five percent on top
• 38:39
  Speaker 1: of your wages, but you can't touch it until you retire,
• 38:41
  Speaker 1: like it's unaccessible.
• 38:43
  Speaker 2: Which is a good thing. That's actually a good thing.
• 38:45
  Speaker 2: Let me tell you something in Okay, in lots of
• 38:47
  Speaker 2: parts of life, we all think we want more control,
• 38:51
  Speaker 2: and sometimes control is good. Listen, I like control. I'm
• 38:53
  Speaker 2: sure you like any podcaster who has a professional setup
• 38:57
  Speaker 2: likes control. Okay, I get in the money. We should
• 39:02
  Speaker 2: not want more control because the more control people have,
• 39:06
  Speaker 2: the more they meddle and fiddle and mess things up.
• 39:11
  Speaker 2: So a classic common mistake is they try to buy
• 39:14
  Speaker 2: when things are low and sell when things are high.
• 39:16
  Speaker 2: That almost always results in disaster over the long term.
• 39:19
  Speaker 2: A much better approach is a boring approach, like watching
• 39:24
  Speaker 2: paint dry. That's what investing is. I put the plan
• 39:27
  Speaker 2: together like twenty five years ago. Every single month money
• 39:31
  Speaker 2: goes in. I look at it every few months and
• 39:35
  Speaker 2: that's it. That's literally it. It's so boring. If you
• 39:38
  Speaker 2: want entertainment, get a dog. Investing is boring, and it's profitable.
• 39:42
  Speaker 2: That's the point.
• 39:43
  Speaker 1: Okay, So I'm going to start putting ten percent or
• 39:47
  Speaker 1: the money that i've some of my savings and ten
• 39:50
  Speaker 1: percent into long term index funds.
• 39:56
  Speaker 2: That would be amazing. That would be a great place
• 39:58
  Speaker 2: to start. And you can even calculate. You can go
• 40:00
  Speaker 2: online type in compound interest calculator. You can plug in
• 40:05
  Speaker 2: your numbers and you will see how much money you
• 40:08
  Speaker 2: will have in ten years, twenty years, thirty years. You
• 40:10
  Speaker 2: can really see it. And what's crazy is the numbers
• 40:14
  Speaker 2: become quite large towards the end. So there's a point
• 40:17
  Speaker 2: where your investments will make more than your salary. And
• 40:21
  Speaker 2: that's like it's called the crossover point. It's quite amazing
• 40:24
  Speaker 2: and at a certain point you just can't stop it.
• 40:25
  Speaker 2: It just keeps growing too big.
• 40:27
  Speaker 1: That's incredible. I'm really excited about this. Okay, so that's
• 40:30
  Speaker 1: the next step. I'm I'm gonna implement this week. So okay,
• 40:35
  Speaker 1: So if you're somebody that has no money to invest,
• 40:39
  Speaker 1: they're literally saying, I'm living literally paycheck to paycheck. It
• 40:43
  Speaker 1: all goes like in I'm sure the US might well,
• 40:46
  Speaker 1: I don't know, but it might be similar. But we've
• 40:48
  Speaker 1: got this cost of living crisis at the moment in Australia.
• 40:51
  Speaker 1: The rent especially in the major cities, in the capital cities,
• 40:54
  Speaker 1: are so high, so a lot of people are thinking, well,
• 40:57
  Speaker 1: right now, all my money is going to rent, builds, groceries.
• 41:02
  Speaker 1: So someone who is living paycheck to paycheck, what would
• 41:06
  Speaker 1: you how would you recommend they look at their spending
• 41:09
  Speaker 1: or the finances.
• 41:11
  Speaker 2: Boy, this is such a nuanced topic. So I'm so
• 41:14
  Speaker 2: glad you asked because I want to talk about it.
• 41:16
  Speaker 2: First of all, housing costs are absurd in Australia, in
• 41:20
  Speaker 2: the US and so many places around the world. I've
• 41:23
  Speaker 2: lived in some of the most expensive cities in the world.
• 41:26
  Speaker 2: It is it is a crisis, and this is one
• 41:29
  Speaker 2: of the reasons that I frequently talk about politics because
• 41:33
  Speaker 2: money is political. Money is political. Housing is political, and
• 41:39
  Speaker 2: that's one of the reasons that I'm such an advocate
• 41:41
  Speaker 2: for building way more housing, especially for young people, for minorities.
• 41:45
  Speaker 2: It's effectively impossible to afford a house right now. In fact,
• 41:50
  Speaker 2: it is unaffordable in almost every city in America. That's
• 41:53
  Speaker 2: not okay. And I really hate the fact that so
• 41:58
  Speaker 2: many people bought houses in the sixth and seventies. They've
• 42:01
  Speaker 2: made sat on it, made millions, and now won't allow
• 42:05
  Speaker 2: more housing to be Yeah, yeah, that is that's absurd.
• 42:09
  Speaker 2: So money is political. That's why I'm so vocal about it. Next,
• 42:13
  Speaker 2: with that said, there's a couple of things. I don't
• 42:19
  Speaker 2: know how it is in Australia, but in the US
• 42:21
  Speaker 2: we have a lot of things that go viral on Twitter, TikTok, etc.
• 42:26
  Speaker 2: About Americans are living paycheck to paycheck. First off, I
• 42:28
  Speaker 2: want to correct that that is not true. In fact,
• 42:31
  Speaker 2: Americans have several months of savings. In fact, they are
• 42:34
  Speaker 2: spending more than ever on discretionary areas like travel, et cetera.
• 42:39
  Speaker 2: So two things can be true. Housing is extremely expensive
• 42:44
  Speaker 2: and people have more money than ever, particularly in the
• 42:49
  Speaker 2: last few years low wage earners. Now this is so crazy.
• 42:53
  Speaker 2: People are like, what are you talking about re meet
• 42:54
  Speaker 2: the American economies in tatters? No, it's not. It's actually
• 42:57
  Speaker 2: quite strong. And also housing is really expensive. Yes, so
• 43:03
  Speaker 2: what can you do? First off, I'm going to suggest
• 43:05
  Speaker 2: that if you are listening to this podcast, you probably
• 43:08
  Speaker 2: have money to invest. Okay, you probably have. If you
• 43:13
  Speaker 2: truly make minimum wage and you have no money at all,
• 43:18
  Speaker 2: then I think a couple of things are true. You're
• 43:20
  Speaker 2: not listening to this podcast, and probably the most important
• 43:23
  Speaker 2: thing for you is to focus on safety and to
• 43:25
  Speaker 2: put your personal safety and on increasing your income. That's
• 43:30
  Speaker 2: that's the simple, factual truth. If, on the other hand,
• 43:34
  Speaker 2: you have an extra fifty dollars a month, fifty dollars
• 43:37
  Speaker 2: that you can find somewhere, which I believe the majority
• 43:40
  Speaker 2: of people can, especially the ones listening to this podcast,
• 43:43
  Speaker 2: then you are ready to invest.
• 43:45
  Speaker 1: All right.
• 43:45
  Speaker 2: Here's why it matters. Fifty dollars a month. That money
• 43:49
  Speaker 2: goes automatically. You're going to quickly realize after two to
• 43:51
  Speaker 2: three months you forgot about setting up the automation. You
• 43:55
  Speaker 2: forgot about it. This happens routinely. People will set up
• 43:58
  Speaker 2: fifty five hundred five thousand, depending on their income, and
• 44:02
  Speaker 2: after three months they don't even remember it's going Then
• 44:04
  Speaker 2: they log in six months later they go, oh my god,
• 44:07
  Speaker 2: I have three hundred bucks, three thousand, thirty thousand, and
• 44:12
  Speaker 2: they realize the power of putting the money away before
• 44:16
  Speaker 2: you ever touch it. So again, if you are truly
• 44:20
  Speaker 2: living paycheck to paycheck making minimum wage, then then we
• 44:24
  Speaker 2: need to focus on your safety and increasing your wages.
• 44:27
  Speaker 2: But the majority of people listening to this have at
• 44:30
  Speaker 2: least fifty dollars. That is so important to get started
• 44:32
  Speaker 2: because once you get it all set up, you won't
• 44:34
  Speaker 2: miss the money, and you can increase that number as
• 44:38
  Speaker 2: your income income.
• 44:39
  Speaker 1: And do you know what, I think a lot of
• 44:40
  Speaker 1: people think, oh, if I've only got a surplus a fifty,
• 44:43
  Speaker 1: what's the point because that's just not gonna accomplish anything.
• 44:48
  Speaker 1: So they just I think people look at it as
• 44:50
  Speaker 1: I'm not gonna bother, I'll just spend it on whatever.
• 44:52
  Speaker 1: It's just that little bit left over, I'll just you know,
• 44:54
  Speaker 1: spend it, or they'll do what I do, and they'll
• 44:57
  Speaker 1: just have it sitting in the bank, but easy accessible
• 45:00
  Speaker 1: if they want to, you know.
• 45:02
  Speaker 2: Yeah, I think you're right. You know. I once had
• 45:04
  Speaker 2: a woman write me and I had asked my email newsletter.
• 45:07
  Speaker 2: I said, what is something that you claim you want
• 45:12
  Speaker 2: to do but you don't actually do it? This is
• 45:15
  Speaker 2: one of my favorite questions. And she said, I claim
• 45:19
  Speaker 2: that I want to go for a run five times
• 45:21
  Speaker 2: a week, but I don't. And I wrote back to her,
• 45:23
  Speaker 2: I said, why don't you just go once? And she
• 45:26
  Speaker 2: responded saying, what's the point of going once? It doesn't
• 45:30
  Speaker 2: do anything. Think about that. She would rather dream about
• 45:34
  Speaker 2: running five times a week than actually go once. And
• 45:38
  Speaker 2: that is exactly what you're saying. With money, most of
• 45:40
  Speaker 2: us dream about being a millionaire, but we don't actually
• 45:45
  Speaker 2: want to start with fifty dollars a month, which is
• 45:47
  Speaker 2: how you become.
• 45:48
  Speaker 1: A million Yeah. And it's so when you say fifty
• 45:50
  Speaker 1: dollars a month, that's achievable to a lot of people.
• 45:54
  Speaker 1: A lot of people can do that. You know, we're talking.
• 45:56
  Speaker 1: You know, what's that thirteen dollars a week? If that,
• 45:59
  Speaker 1: you know, it's it's not much. Okay, So I've got
• 46:04
  Speaker 1: this great question. Come in and someone says, how to
• 46:07
  Speaker 1: get out of the saving money all the time and
• 46:10
  Speaker 1: be able to spend a little bit more freely.
• 46:13
  Speaker 2: WHOA, this is one of my favorite topics. I am
• 46:17
  Speaker 2: an expert at spending money.
• 46:18
  Speaker 1: I'll tell you that, right.
• 46:20
  Speaker 2: So all right, So first off, let me let me
• 46:23
  Speaker 2: point out that people have a very interesting set of
• 46:27
  Speaker 2: language around spending. They'll say things like, I was bad
• 46:31
  Speaker 2: last month. I said, really, you were bad? What does
• 46:34
  Speaker 2: that mean? I spent I spent too much? I said,
• 46:36
  Speaker 2: really too much? What does that mean?
• 46:38
  Speaker 1: Well?
• 46:38
  Speaker 2: I just I mean I just spent a lot, you know,
• 46:40
  Speaker 2: And I go, what's a lot? Deep down, most of
• 46:44
  Speaker 2: us attach a moral valence or moral value to spending,
• 46:49
  Speaker 2: and the morality of it goes like this, Spending money
• 46:52
  Speaker 2: is bad, saving money is good. And then guess what
• 46:56
  Speaker 2: they end up doing. They end up spending a bunch
• 46:58
  Speaker 2: of money anyway. They don't even spend it on things
• 47:00
  Speaker 2: they love. It's just stuff in front of them. We
• 47:04
  Speaker 2: got to change this. First of all, I spend a
• 47:06
  Speaker 2: lot of money on the things I love. Okay, I
• 47:09
  Speaker 2: can afford it. I'm intentional about it, and it doesn't
• 47:13
  Speaker 2: make me a bad person. I love spending money because
• 47:18
  Speaker 2: that's the point of it is the point of it
• 47:20
  Speaker 2: is not to hoard it. Yeah, a cumulate like a
• 47:22
  Speaker 2: freaking dragon. The point is to use money to live
• 47:27
  Speaker 2: your rich life. So we need to really rethink our
• 47:31
  Speaker 2: emotional relationship with money, because if you think that spending
• 47:35
  Speaker 2: money is bad, then you are forever going to be
• 47:41
  Speaker 2: tormented by your relationship with money. Okay, then the question
• 47:45
  Speaker 2: is like, how do you actually spend it meaningfully? Most
• 47:49
  Speaker 2: people have no problem spending it on a bunch of junk.
• 47:52
  Speaker 2: But if you ask them like what is your rich life?
• 47:55
  Speaker 2: They'll tell me all these lofty things. I like to travel,
• 47:57
  Speaker 2: I value relationships. Know it's all about healthy organic food.
• 48:01
  Speaker 2: I go cool, Show me your calendar and show me
• 48:04
  Speaker 2: your spending for the last three months. Suddenly the things
• 48:07
  Speaker 2: they are spending time and money on do not match
• 48:11
  Speaker 2: up with their rich life. So we have to do
• 48:14
  Speaker 2: some exercises in using my book or using my journal
• 48:18
  Speaker 2: that helps people really define what is my rich life?
• 48:22
  Speaker 2: Let me be unapologetic about it. Okay, if you want
• 48:25
  Speaker 2: a personal trainer, because health is important to you and
• 48:28
  Speaker 2: it really helps to have somebody there, so you're going
• 48:31
  Speaker 2: to show up and push yourself. Great, let's write it down.
• 48:34
  Speaker 2: Doesn't mean you have to be able to afford it today,
• 48:36
  Speaker 2: but at least let's create a powerful vision. Then we
• 48:40
  Speaker 2: look at your conscious spending plan, which you know, you
• 48:42
  Speaker 2: put your numbers out there just first draft, and then
• 48:45
  Speaker 2: we say, what is misaligned? Am I spending a ton
• 48:48
  Speaker 2: of money on stuff that's not actually important to me?
• 48:51
  Speaker 2: That's actually cool? Now that I know it, I can
• 48:54
  Speaker 2: cut costs mercilessly there and shift that over to saving
• 48:58
  Speaker 2: or investing or even spend. That is how we start
• 49:01
  Speaker 2: to become strategic and unapologetic instead of always feeling guilty
• 49:06
  Speaker 2: spending money.
• 49:07
  Speaker 1: Yeah, so just being more I guess, yeah, more specific
• 49:09
  Speaker 1: on what it is that you want to be spending
• 49:11
  Speaker 1: your money on. What you know, One thing that I
• 49:13
  Speaker 1: genuinely and I've always felt, I love spending money on
• 49:17
  Speaker 1: my daily coffee. I love it, I love the ritual
• 49:20
  Speaker 1: off it. I really enjoy it. Yeah, that's five dollars
• 49:23
  Speaker 1: or four dollars that I'm happy to spend because it's
• 49:26
  Speaker 1: I love it. But you always hear people saying if
• 49:28
  Speaker 1: you cut out your daily coffee, then in twenty years
• 49:32
  Speaker 1: you would have saved You.
• 49:33
  Speaker 2: Know, it's totally absurd. If, first of all, it's such
• 49:36
  Speaker 2: a puritanical approach to life. If you just cut back
• 49:39
  Speaker 2: on the one joy you have in life, then eight
• 49:43
  Speaker 2: hundred and ninety years from now, while you know your
• 49:46
  Speaker 2: bones are in a cave. Uh, maybe, just maybe you
• 49:49
  Speaker 2: could spend it on the things like what And second
• 49:51
  Speaker 2: of all, it's not even real, It doesn't even make sense.
• 49:53
  Speaker 2: Let me explain why we are so obsessed with three
• 49:56
  Speaker 2: dollars questions that we totally ignore the thirty thousand dollar questions.
• 50:01
  Speaker 2: So you have an entire generation of people walking around
• 50:04
  Speaker 2: obsessed and tormented by should I get this cheesecake? I
• 50:09
  Speaker 2: don't know, I feel like a large lemonade, but uh,
• 50:12
  Speaker 2: that's bad. Meanwhile, they don't know what their savings rate is,
• 50:15
  Speaker 2: they don't know what their investing rate is. They don't
• 50:17
  Speaker 2: even know what the phrase acid allocation means. They they
• 50:20
  Speaker 2: have no sense that if they simply increase their investment
• 50:24
  Speaker 2: rate by one percent every year, one percent, it would
• 50:27
  Speaker 2: pay for every vacation and every coffee they ever spend
• 50:32
  Speaker 2: money on for their entire life and other Yeah, we
• 50:35
  Speaker 2: specialize in agonizing over the price of cheese at the
• 50:39
  Speaker 2: grocery store, a three dollar question instead of asking the
• 50:42
  Speaker 2: five to ten thirty thousand dollars questions that would alleviate
• 50:47
  Speaker 2: any tiny questions and allow us to live a very
• 50:50
  Speaker 2: rich life. It drives me nuts. It's like we're going
• 50:54
  Speaker 2: our whole life feeling bad about money, wasting our time
• 50:57
  Speaker 2: and attention on tiny things that don't even matter. If
• 50:59
  Speaker 2: you want the coffee, get the coffee. But you better
• 51:01
  Speaker 2: be investing at least ten percent. You better be saving.
• 51:04
  Speaker 2: It better be automatic, You better have a series of
• 51:06
  Speaker 2: money rules, and you better enjoy where you are spending money.
• 51:10
  Speaker 2: You don't need to agonize and stop playing small.
• 51:13
  Speaker 1: Yeah, I love that. I love that. Okay. Oh, I'm
• 51:16
  Speaker 1: so motivated. You've got no idea. Okay, we've got time
• 51:19
  Speaker 1: for one more question. Oh, there's so many questions that
• 51:22
  Speaker 1: have come through this this is crazy. Okay, maybe two
• 51:26
  Speaker 1: more questions. What is the best money investment I can
• 51:30
  Speaker 1: make at eighteen years old?
• 51:33
  Speaker 2: Oh? Wow, I love this question. Okay, Okay, I'm gonna
• 51:39
  Speaker 2: teach a little technique here. First of all, the best
• 51:42
  Speaker 2: investment you can make at eighteen is a simple, low cost,
• 51:46
  Speaker 2: long term investment, something like an index fund. What I
• 51:50
  Speaker 2: would recommend to my young nieces and nephews at that
• 51:54
  Speaker 2: age would be if they have a retirement account. Open
• 51:59
  Speaker 2: it up. It can even be a custodial account that
• 52:02
  Speaker 2: your parents help you open up. Put your money in
• 52:05
  Speaker 2: what I would tell my niece enough, you put your
• 52:07
  Speaker 2: money in a target date fund and let it sit
• 52:11
  Speaker 2: there for the next forty years. Just keep maxing it
• 52:13
  Speaker 2: out every single year. You will be incredibly wealthy from
• 52:17
  Speaker 2: just that investment alone. Here's a quick little rule everybody
• 52:20
  Speaker 2: can learn. It's a quick little party trick. It's called
• 52:23
  Speaker 2: the rule of seventy two. Seventy two divided by your
• 52:26
  Speaker 2: return rate will tell you how many years it will
• 52:29
  Speaker 2: take you to double your money. So typically an index fund,
• 52:32
  Speaker 2: at least in the US, we can expect that it
• 52:34
  Speaker 2: will give you about ten percent per year, right, and
• 52:38
  Speaker 2: so seventy two divided by ten means your money will
• 52:41
  Speaker 2: double roughly every seven years. Okay, minus inflation, blah blah blah.
• 52:45
  Speaker 2: The point is if you put two thousand bucks in there,
• 52:48
  Speaker 2: that turns to four thousand, eight thousand, sixteen thousand, thirty
• 52:51
  Speaker 2: two thousand, sixty fifty six, and it starts getting really big. Okay.
• 52:56
  Speaker 2: Time is literally your best friend when it comes to investing.
• 53:01
  Speaker 2: So whenever I see someone who's delaying investing. It's just
• 53:05
  Speaker 2: like I see dollar signs, like so many dollars size.
• 53:08
  Speaker 2: That's why, alexis I want to know by the end
• 53:10
  Speaker 2: of the week about your investing because it's got to happen.
• 53:12
  Speaker 2: It's got to happen. And don't worry. It's not too late.
• 53:14
  Speaker 2: It's not too late for anybody listening. But if you
• 53:16
  Speaker 2: have the opportunity to start today, I would highly.
• 53:19
  Speaker 1: Because yeah, I've actually I'm looking at all these questions.
• 53:21
  Speaker 1: Someone says, is it too late to start saving at thirty?
• 53:23
  Speaker 1: Someone says it's too late to start saving at thirty seven?
• 53:26
  Speaker 1: But no, it's just whenever.
• 53:28
  Speaker 2: But isn't it Yeah, isn't that the whole point? Like
• 53:30
  Speaker 2: sometimes people will say to me, is it too late
• 53:32
  Speaker 2: at thirty? It's so laughable, Right, it's at thirty what
• 53:35
  Speaker 2: are you talking about? But what that really implies is
• 53:38
  Speaker 2: people they go from being twenty and not knowing anything
• 53:42
  Speaker 2: about money, right, nobody really teaches it to suddenly waking up,
• 53:45
  Speaker 2: whether thirty or forty, and going is it too late?
• 53:48
  Speaker 2: And really what that speaks to is a fear, a
• 53:51
  Speaker 2: fear that it's too late. We've missed the boat et cetera.
• 53:54
  Speaker 2: I want to reframe all that you have the ability
• 53:56
  Speaker 2: to change your future. Start investing now, especially in the
• 53:59
  Speaker 2: early days. It's okay if you make a few mistakes
• 54:02
  Speaker 2: because you're dealing with a small amount of money. You
• 54:03
  Speaker 2: will get stronger and better and more knowledgeable, and you'll
• 54:06
  Speaker 2: become more equipped as your net worth increases. Let me
• 54:09
  Speaker 2: tell you this. Part of winning with money and becoming
• 54:14
  Speaker 2: really good with money, just like we can get really
• 54:17
  Speaker 2: good at speaking Spanish or playing an instrument, is to
• 54:21
  Speaker 2: go on offense instead of defense. So defense is spending
• 54:26
  Speaker 2: on whatever and then waiting till the end of the
• 54:28
  Speaker 2: month and feeling guilty about your credit card bill. That's defense, okay.
• 54:33
  Speaker 2: Offense is saying what is my rich life? Let me
• 54:36
  Speaker 2: get ultra specific, not just travel. I want to take
• 54:40
  Speaker 2: a trip to Italy. I want to drink Italian wine,
• 54:43
  Speaker 2: watching the sunset over the coliseum with my loved one.
• 54:46
  Speaker 2: That is specific. How much is it going to cost?
• 54:49
  Speaker 2: Let me start putting money aside. I want automatic savings,
• 54:51
  Speaker 2: automatic investing, fixed costs, guilt free spending, go on offense,
• 54:56
  Speaker 2: make a plan, set your money up automatically, and then
• 54:59
  Speaker 2: enjoy because you made a plan.
• 55:01
  Speaker 1: It's very proactive what you talk about it. It's like,
• 55:04
  Speaker 1: it's really take because I think I've been very reactive
• 55:09
  Speaker 1: or defensive with how and I think most people, especially
• 55:13
  Speaker 1: the younger well maybe not you would know, but most
• 55:15
  Speaker 1: people are in like that. Whereas this is taking a
• 55:18
  Speaker 1: very proactive approach. I'm looking at it from you know,
• 55:21
  Speaker 1: the start.
• 55:22
  Speaker 2: You know, Yeah, Like it's okay, It's okay to want
• 55:26
  Speaker 2: to have money. It's okay to consider money if you're
• 55:30
  Speaker 2: in a row, if you're getting into a relationship, Like,
• 55:33
  Speaker 2: it's okay to think about these things. Money isn't just like,
• 55:36
  Speaker 2: oh do I want my wall to be gray or white.
• 55:39
  Speaker 2: Money affects what you eat, It affects where you live.
• 55:43
  Speaker 2: It affects your ability to have children or to raise
• 55:45
  Speaker 2: them the way you want. It affects everything about your life.
• 55:48
  Speaker 2: It doesn't mean you're evil or greedy. I'm not greedy.
• 55:51
  Speaker 2: I'm very generous. I can be because I make money
• 55:54
  Speaker 2: and I'm intentional with it. So you can hear me
• 55:56
  Speaker 2: getting excited because I want people to lean forward and
• 56:01
  Speaker 2: stop being afraid of money. Take control of it. You
• 56:03
  Speaker 2: can live in an amazing, rich life if you do.
• 56:06
  Speaker 1: I love that thank you so much. Thank you so
• 56:09
  Speaker 1: much for your time. This has been so valuable. I
• 56:11
  Speaker 1: can't wait to read your book. Could you please so
• 56:14
  Speaker 1: you have a Netflix show as well, could you please
• 56:15
  Speaker 1: tell the listeners your podcast, your Netflix show, your book,
• 56:20
  Speaker 1: and anything else that you think would be a good rasource.
• 56:22
  Speaker 2: My Netflix show, how to Get Rich, my podcast, I
• 56:26
  Speaker 2: will teach you to be rich podcast.
• 56:28
  Speaker 1: That's that's great podcast, Thank you.
• 56:30
  Speaker 2: That's where I speak to couples and you can listen
• 56:33
  Speaker 2: to it, and you can also watch it on YouTube,
• 56:35
  Speaker 2: and you will be shocked speaking to couples in hundreds
• 56:40
  Speaker 2: of thousands of dollars of debt or millions of dollars
• 56:42
  Speaker 2: of networth, and you will hear conversations you have never
• 56:46
  Speaker 2: heard before. That's what gets me really excited.
• 56:49
  Speaker 1: Incredible, incredible. Thank you so much. I will be messaging
• 56:53
  Speaker 1: you when I invest my when I start up that
• 56:57
  Speaker 1: index fun.
• 56:59
  Speaker 2: Yeah there you go, can't wait.
• 57:01
  Speaker 1: Thank you so much. I really appreciate my pleasure.