Latest / Success Story with Scott Clary / The Money Rules No One Taught You About Building Wealth | Marcus Barney - Financial Education Expert

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The Money Rules No One Taught You About Building Wealth | Marcus Barney - Financial Education Expert · Success Story with Scott Clary

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  In this lessons episode, uncover the truth about credit and how it shapes financial freedom or traps.
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  Learn how the system is built to benefit banks, not consumers.
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  Learn why most people misuse credit due to miseducation and conflicting advice
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  and learn how using strategic credit and business can fuel growth without giving up equity.
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  It's so confusing because you have Dave Ramsey saying don't buy shit on credit.
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  And now you have predatory credit cards and then America's built on credit.
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  I actually just learned this recently that credit is actually like a relatively new concept
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  that was like based in the US where in Europe for a long time there wasn't as much credit as there
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  is in the US. Like the thought of buying shit with not your own money in history is actually
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  I think very new if I'm not mistaken and nobody knows how to play that game like really really
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  well and there's so much conflicting advice. I think that's what really spurs people.
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  And it's a you gotta understand that it comes from a capitalistic place, right?
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  In reality, I believe in credit because it's available tools so we should know how to utilize tools
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  when you don't have any. But if you look at it on the flip side is that the way the credit is
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  is even pushed out and pushed into the community and for you to be able to finance things,
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  it's not for the benefit of the consumers for the benefit of the bank 100%.
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  And so when you start to realize and identify that you start for me, I was going, okay,
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  well, how do I make this beneficial for me? I understand you guys set us up on a spin wheel
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  for your benefit. I'll allow you to finance this or pay. Imagine on on on on the mortgage,
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  I'll allow you to pay 30 years. First eight years interest only. Year 15 you follow them hard times.
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  We got our interest and now we four close on you and year 15, year 12, but we've already
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  collected the interest. Now at this point, once it starts going to principle, if you ever fall
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  on hard times, you lose the house. Yeah, I people don't realize any of that. There's so many levels to
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  this. Even with auto loans. You have a bet. You got bad credit. Like, okay, think about it.
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  The car is $80,000. If you have great credit with interest, you'll pay 93, 95,000.
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  Bad credit, you'll pay 140, 160,000. Okay. In that buffer for the same car,
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  you came in ideally, you don't want to help people with good credit. It makes more sense
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  to serve as people and have people with bad credit. I rather you be confused
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  if I'm going to make double the money. You take advantage of people. So it's just that's the
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  importance of his understanding that this system is not created to help you grow if you're not
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  educated on how to properly use it and navigate it. That's why they say, well, why don't they teach
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  credit in schools? Well, why would they? They don't teach business in how to be your entrepreneur
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  and how to not believe in a school system is good either. It's a circle that we kind of go into
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  where we have to realize that there's pros and cons. The cons are naturally sitting
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  and presented to us more. The miseducation is often much easier to get than the correct
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  information. And that's one of the key things that I like about where I'm at is that I teach people
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  how to use credit the right way to their own benefit. Don't get suckered into doing anything.
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  You know, this is how I was taught to do it in his room. So Tita for people because we talk a lot
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  about investment on this show and like should you raise money from investors and angels and VCs
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  or should you just bootstrap? I've never really had a conversation on this show about like strategic
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  credit for business. So just frame it for people. Where in their business should they use credit
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  versus bootstrap and fund it with customer cash versus VC versus angel investing like
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  I don't think it's a bad idea. But it's not something that if I watch 100 videos on entrepreneurship,
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  I don't think any of them are going to talk to me about how to use strategic like credit or
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  is it debt I guess for a business compared to all the other types of ways to fund it. So when you
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  bootstrap, ideally, honestly, if you most entrepreneurs will end up, they'll start bootstrapping.
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  And so when a bootstrap at the beginning, what happens is that I believe that's the proof
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  it meant it because it's a lot of things that you have to prove to yourself. It's a lot of things
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  you have to prove to your customers, develop and prove your brand. After you bootstrap and let's
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  just say you get to a point to where you're doing six figures. You do a multiple six figures and
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  you figured out the Kings, right? You went through it, you're going through it. Now it's going, okay,
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  I have a proven model. I've worked out my customer support. I understand the lifetime value of my
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  customers. I understand customer acquisition, how to get customers. And I now I understand my
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  business. I'm actually a business owner at this point. I'm not I'm no longer risky and gambling.
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  And I don't know what's going to happen. I kind of have numbers on the board that I can actually
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  check have data to be able to look at. At that point, most people go, I'm ready to scale.
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  That's the point when you're ready to scale. You'll get asked for a story. I just want to scale,
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  but you don't know your numbers. You don't understand the psychologically. If you don't have a control
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  over your business, you don't understand it. Can't look inside the hood. You don't really,
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  you're not running a business, run the hustle. You're just running and you really don't know what's
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  going on. You take that. That's going to mess crushes it. Yeah. But when you have somebody who
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  understands it, now when you deploy somebody else's money into it, you know what your what
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  atmosphere and what environment you're putting that money into. So you imagine as an entrepreneur
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  and business owner, you figure out, okay, I'm actually profitable now. This is how I make money.
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  These campaigns work for me. These marketing styles work for me or this yellow pages work for me.
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  This billboard works for me. Okay. Now, how can I use somebody's capital and be able to put it out?
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  And most entrepreneurs go, I want to scale. And if I say, Hey, I'll give you $50,000 for 15% of your
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  business. They go 15 maybe 10 or 12 like and they're willing to do a deal. But they don't know of
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  of banks like Marcus and the Goldman Sachs in Apple, right? Like you can get an Apple credit card.
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  Same thing with the Goldman Sachs Goldman Sachs is that you can go and apply for a pre-approval.
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  You go apply for a pre-approval and it'll tell you if you're pre-approved and what you're
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  pre-approved for. You now know what you can get access to. You don't even have to get a hard
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  inquiry or apply or do the full application. You just check the pre-approval. And now you say,
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  okay, well, here's $25,000. Here's $20,000. I have $45,000 sitting there if I need it.
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  I got it. Now I put that into my business, right? Because you already have the business figured
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  up. That's the difference. And it's growing and it's working. But you realize, hey, if I had to
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  extra $10,000, $15,000, $20,000 to put into products or to be able to expedite and grow my
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  marketing and advertising or to hire more staff to get things out faster, whatever it may be
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  dependent on the industry, you realize you get to a point where you can operate and you understand
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  it. And now I can actually deploy somebody else's money to put gas on something that works.
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  Yeah, I think that's smart too. But plus, you also get to hold on to 100% of your business.
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  You're not diluting yourself. You're not giving up equity with credit.
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  Where did... I know that your interest in credit came from failed businesses.
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  Shit, that wasn't going so well. Did you get any? Because I'm thinking back to when I was in
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  school and I got zero financial education about credit, to your point, nothing. Did you have any
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  education growing up? Why is our education system so messed up? And we just don't give kids the
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  tools that they need? Because I honestly think that it's a different... I don't think this is
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  for kids, right? Because it often comes up. They should put it in teaching in schools.
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  And it's like, no, there's other things that are more important about the human development,
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  about self-development, and actually allowing people to develop versus putting them right into
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  the rat race of finances and dealing with money. Because what we realize, and we can even look at
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  adults once they figure something out, or they get miseducated or a misunderstanding, they can stay
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  and live with that miseducation and misunderstanding for 10 years. And if you're not properly educated
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  on how to be cognitive, how to think, how to process, how to analyze, how to use your discernment,
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  teaching people about how to go get access to capital is dangerous for a 16-year-old who looks
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  someone's lion wants a hillcat, who wants to be able to spend money on streaming. And he's figuring
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  out ways, you know, now when it comes to financial, when it comes to credit, right? But now when it comes
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  to budgeting, things like that, it's super important. Those are things that need to be taught in
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  schools, like how do you actually manage the relationship with money? How do you manage the
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  relationship with money on a spectrum of not going and getting money from other people,
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  but just how to deal with it? How to deal with your bank account? How to actually look and check?
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  Nowadays, we got apps and things like that out there now to tell us all of our
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  how we're spending, where we're spending that, things like that. But it's like, okay, well now,
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  how do we read these things? How do we actually govern it to make ourselves better?
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  I mean, we can kind of outsource our thinking to apps. We still don't do a good job of managing
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  money. And even now there's, I know there's apps that like show you like, hey, you're spending
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  this much on your monthly subscriptions. And I think those are smart. But I think that that early
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  child, the dedication about finance, that's important just to figure out how to like
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  where you're spending, what a balance is, like how much, you know, your personal cash flow?
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  Kind of that's really the way that I think about it. And that doesn't exist in schools. But then
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  like when you're older, like credit is important. I mean, there's a really
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  mandatory for kids going into college. I agree with that. As opposed to just having like a little
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  booth at the credit card on the campus. No, it needs to be, it's something that should be a
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  prerequisite in college, not as much high school. So when you think, well, I think about kids,
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  I think about high school, I think high school needs to have a very strict strategic
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  across the board course and in trainings on relationship with finances, right?
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  To understand it. But I think by the time people get to college, now it needs to go into
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  actually understanding finance is how it works. The understanding credit, what it is because at
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  this point, now you're available to you. So coming in freshman year, it should be automatically,
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  how you got to take prerequisites on credit. Because what happens is that now all the credit card
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  all for start. And now it's like, okay, I'm just taking things and I don't know any better.
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  links in the description to watch the full episode. See you in the next one.