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Transcript

Your Paycheck Is Making Someone Else Rich: 4 Steps To Turn Your Income Into Net Worth · The Table with Anthony ONeal

0:01
[SPEAKER_00]: Let me ask you something that knows probably never actually out loud.
0:08
[SPEAKER_00]: And forgive me today, because Matt, I have been on tour some of my body as tire, but I refused to skip through today's episode.
0:18
[SPEAKER_00]: The question I want to ask you there, I've been asking people lately is, what are you worth?
0:22
[SPEAKER_00]: Not how much money do you make, not what is your paycheck say?
0:25
[SPEAKER_00]: I'm asking you, what are you worth?
0:30
[SPEAKER_00]: What are you and your spouse worth?
0:34
[SPEAKER_00]: What is your last name worth?
0:37
[SPEAKER_00]: You can answer the first one right now.
0:40
[SPEAKER_00]: You can probably say $2 or make $X amount of dollars a year, but most people cannot answer the second question at all.
0:47
[SPEAKER_00]: and the distance between how fast you answered those two questions is the whole reason, a good salary and a real net worth are not the same thing.
1:01
[SPEAKER_00]: I know the distance, personally.
1:03
[SPEAKER_00]: I remember making $100,000 a year and had nothing left by the end of the month.
1:10
[SPEAKER_00]: Literally, I would get paid when I was making six figures.
1:13
[SPEAKER_00]: My first six-figure jogger paid on the 15th and no later than the 26th, I was broke.
1:20
[SPEAKER_00]: So here is what we're going to be doing today on today's episode.
1:23
[SPEAKER_00]: I'm going to be giving you your second number and the next three minutes.
1:27
[SPEAKER_00]: Then the four places that gap opens up in a working person's life and the order you need to be closing them.
1:37
[SPEAKER_00]: That's what we're talking about today.
1:42
[SPEAKER_00]: Let me say this or unplug this.
1:45
[SPEAKER_00]: Let me say what is true about a pay raise.
1:49
[SPEAKER_00]: because here's the truth, income does matter.
1:52
[SPEAKER_00]: And anyone who tells you your salary is irrelevant has never tried to build something on $32,000 a year.
1:59
[SPEAKER_00]: Period.
2:01
[SPEAKER_00]: But here's what I believe for most of my 20s.
2:06
[SPEAKER_00]: And a lot of you believe it too, even today, that if the paycheck got bigger, if the paycheck got big enough,
2:20
[SPEAKER_00]: If I can just get the six figures, if I can just get to make it 100, 200,000 dollars a year, the rest of it will take care of itself.
2:28
[SPEAKER_00]: And that is the belief I gotta take apart today.
2:32
[SPEAKER_00]: That is the belief that kept me stuck for a while.
2:36
[SPEAKER_00]: That is the belief that when I was making $20,000 a month, I was broke by the next month.
2:42
[SPEAKER_00]: Because here's your truth.
2:44
[SPEAKER_00]: I don't know if we can put this on this green.
2:46
[SPEAKER_00]: Put this in the comments.
2:48
[SPEAKER_00]: Take a screenshot of this, but your income tells you what passes through your hands.
2:53
[SPEAKER_00]: Your net worth tells you what's stayed.
2:59
[SPEAKER_00]: We'll say it one more time.
3:00
[SPEAKER_00]: Your income is gonna tell me about yourself.
3:03
[SPEAKER_00]: How much money you make?
3:04
[SPEAKER_00]: But your net worth tells me how much stayed, how much margin you had,
3:13
[SPEAKER_00]: And here's how you can run it, here's how you can run it.
3:17
[SPEAKER_00]: I need you to add up everything in your own checking, savings, retirement accounts, what your car was sell for today, and your home, if you actually own a home, then watch this, then add up everything you own, credit cards, car loans, student loans, yes, your mortgage, anything financed, anything that you owe money to, IRS.
3:42
[SPEAKER_00]: Why says, child support?
3:45
[SPEAKER_00]: Subtract the second one from the first.
3:49
[SPEAKER_00]: Family, that's your number.
3:53
[SPEAKER_00]: Family, that is what you are worth.
4:02
[SPEAKER_00]: some of you are going to run that and some of it actually a lot of us are going to come out to the negative.
4:10
[SPEAKER_00]: And I got you to I need you to stay with me because that is not a career to flow.
4:15
[SPEAKER_00]: That is the most common result in being United States of America and I have personally lived it.
4:21
[SPEAKER_00]: I'm going to say it one more time.
4:25
[UNKNOWN]: I've lived it.
4:28
[SPEAKER_00]: And I want you to notice how you feel when
4:33
[SPEAKER_00]: Because the first number you knew instantly is printed on your paychecks up when you get your own Fridays.
4:40
[SPEAKER_00]: It's sitting inside your account sometimes on Friday, you'll see it for a split second.
4:44
[SPEAKER_00]: But that second number, you gotta go gig in for that number.
4:49
[SPEAKER_00]: Your job does not put it on your off-of-the-header.
4:52
[SPEAKER_00]: The whole world is built to ask you what you make and never wants to ask you what you kept.
5:02
[SPEAKER_00]: We're in 2026, and let me just go there and say this.
5:07
[SPEAKER_00]: Again, I'm not a relationship coach.
5:09
[SPEAKER_00]: I'm only speaking from experience, but in dating, we want to ask what's your credit score and how much money do you make?
5:18
[SPEAKER_00]: When those are the two questions, I really don't give a crap about.
5:24
[SPEAKER_00]: I'm telling you two questions that I would love to get to eventually within dating.
5:27
[SPEAKER_00]: How much are you worth?
5:29
[SPEAKER_00]: And how much do you tie?
5:39
[SPEAKER_00]: is because we never want us acts, how much you've kept, never want us acts, how much you're worth.
5:46
[SPEAKER_00]: And that is how a person works 20 years, watches the first number climb the entire time and never notices that second one has not moved.
5:56
[SPEAKER_00]: You've never noticed that your net worth has evolved, state the same, or going down.
6:02
[SPEAKER_00]: Why?
6:02
[SPEAKER_00]: Because we're not trained to think about net worth.
6:06
[SPEAKER_00]: We're trained to think about how much money we make and what's our credit score.
6:15
[SPEAKER_00]: Does he or she have a 800 credit score?
6:18
[SPEAKER_00]: And does he or she make at least 80,000,000 dollars a year?
6:21
[SPEAKER_00]: If they got those two things, I'm happy.
6:23
[SPEAKER_00]: You can have a 800 credit score making a 150,000 dollars a year and be worth nothing.
6:36
[SPEAKER_00]: So let me start at the top.
6:40
[SPEAKER_00]: With people who already have a big second,
6:47
[SPEAKER_00]: because what happens to them tells you what the number is for.
6:51
[SPEAKER_00]: Okay, wait, we're going to start at the bottom today.
6:56
[SPEAKER_00]: Now, let me go to the top.
6:58
[SPEAKER_00]: Current look today.
6:59
[SPEAKER_00]: They are roughly 24 million.
7:01
[SPEAKER_00]: I said it correctly.
7:03
[SPEAKER_00]: 24 million millionaire households in America.
7:08
[SPEAKER_00]: Only about six million of them
7:11
[SPEAKER_00]: have a 1 million, have, I will say, have 1 million, they can actually touch investments, retirement accounts, cash.
7:23
[SPEAKER_00]: So, so, wait a week, 24 million Anthony, but you said there's only roughly what?
7:27
[SPEAKER_00]: Six, so Anthony, that's leaving out about 18 million people, absolutely.
7:32
[SPEAKER_00]: So what about those other 18 million?
7:34
[SPEAKER_00]: Huh.
7:35
[SPEAKER_00]: They are millionaires inside a building they sleep in.
7:44
[SPEAKER_00]: I want to just sit right there.
7:45
[SPEAKER_00]: I want to see if you can understand what I'm saying before I even break that down.
7:49
[SPEAKER_00]: There are millionaires inside a building they're sleeping in.
7:57
[SPEAKER_00]: Now, let me say this upfront, I believe in home ownership.
8:00
[SPEAKER_00]: I am a home owner.
8:01
[SPEAKER_00]: Only your home, but responsibly, is one of the strongest wealth building tools in everyday American can honestly do.
8:10
[SPEAKER_00]: That does not change.
8:14
[SPEAKER_00]: but how she live in does not pay you.
8:16
[SPEAKER_00]: It charges you, the roof, the water, the heater, taxes, the insurance that climbs every year, whether you ask for it or not.
8:26
[SPEAKER_00]: The number on the appraisal is real and it does not put $1 in your account on the first of the month.
8:35
[SPEAKER_00]: So watch what happens to somebody in that group.
8:38
[SPEAKER_00]: Their worth $1.2 million.
8:41
[SPEAKER_00]: Then the transmission goes out and they are putting $4,000 on a credit card at 22.4% interest because there is a, there's 1.2 million sitting in the walls of the home and $600 sitting in the bank.
9:10
[SPEAKER_00]: but that changes how you look at your own second number.
9:14
[SPEAKER_00]: You see, I believe this, it is not a scoreboard.
9:17
[SPEAKER_00]: It is a measure of whether you own anything that works for you.
9:24
[SPEAKER_00]: Anything, you can have a paid off house and 90 days before you can, and 90 days before, you cannot make the payment or anything else.
9:34
[SPEAKER_00]: you can look like the most successful person on your street and be one emergency away from starting all the way over.
9:43
[SPEAKER_00]: What makes you free is not the size of the number is how much of it can show up when you need it.
9:51
[SPEAKER_00]: When you need it.
9:54
[SPEAKER_00]: So run yours in two parts, the total and what part
10:05
[SPEAKER_00]: Don't go running.
10:08
[SPEAKER_00]: If you go over to www.anthedonio.com, there's a free wealth calculator on it.
10:12
[SPEAKER_00]: Taking maybe about two minutes, the link is going to be inside of today's show description.
10:18
[SPEAKER_00]: Now the rest of today's episode is going to land a little differently, while you actually know your number.
10:25
[SPEAKER_00]: Every single day, I'm asking myself questions.
10:29
[SPEAKER_00]: How am I evolving my net worth, not my income?
10:33
[SPEAKER_00]: How am I building my margin, not my income?
10:39
[SPEAKER_00]: Before you invest a single dollar, build a business, or chase any gold, there's one thing that has to be true first.
10:45
[SPEAKER_00]: You have to be consumer debt-free.
10:49
[SPEAKER_00]: Most people try to build wealth before they even know where their money is actually going.
10:53
[SPEAKER_00]: They have no budget, they have no plan, aka they have no strategy.
10:57
[SPEAKER_00]: Just consumer debt, powering up in the background while life keeps moving forward.
11:02
[SPEAKER_00]: That's why I built in the black.
11:05
[SPEAKER_00]: the app that gives you a daily money coach and your pocket.
11:09
[SPEAKER_00]: It walks you through my five-phase escape plan.
11:11
[SPEAKER_00]: It'll show you a zero-based budget and tells you exactly.
11:15
[SPEAKER_00]: Watch this exactly what to do with your money, every single day, nine every month, nine every week, every single day when you wake up.
11:23
[SPEAKER_00]: You see, this isn't just theory.
11:24
[SPEAKER_00]: It's the same process that has helped over a hundred thousand families get out of debt.
11:29
[SPEAKER_00]: Real people like yourself are paying off thousands of dollars using this app.
11:34
[SPEAKER_00]: One got it, step at a time.
11:36
[SPEAKER_00]: All you gotta do is go to anthonyoneau.com 4-app right now.
11:40
[SPEAKER_00]: Take the two minute quiz and please be honest and get your personalized plan.
11:44
[SPEAKER_00]: Fix your foundation first.
11:46
[SPEAKER_00]: Then go build whatever's next.
11:48
[SPEAKER_00]: Go to anthonyoneau.com 4-app and let's get back to today's show.
11:55
[SPEAKER_00]: This is something that I'm teaching my students at for Jeanne University.
11:59
[SPEAKER_00]: Like, yo, I don't want you to really more so worried about your income income is important, but the most important number is margin because margin builds your network.
12:13
[SPEAKER_00]: Now let's have a conversation about my car.
12:18
[SPEAKER_00]: Yeah.
12:19
[SPEAKER_00]: Let's talk about my car.
12:21
[SPEAKER_00]: You see, when I was homeless,
12:24
[SPEAKER_00]: In Oceanside, California, in my early 20s, I slept in a 1887s on Maximum that could not go in reverse.
12:33
[SPEAKER_00]: I had two-twels and a thousand-month app in the back of that joint, it was fire.
12:38
[SPEAKER_00]: Years later, I was making $100,000 of selling Nissan's.
12:44
[SPEAKER_00]: And I was driving a brand new Nissan Maximum look right off the line.
12:50
[SPEAKER_00]: I don't think I think it just got off the truck and I bought it two days later.
12:56
[SPEAKER_00]: Watch this, same badge, same car, about five to ten years apart, honestly about five years apart, stuck both tough.
13:04
[SPEAKER_00]: I want you to sit with that, because it took me years to really understand this.
13:12
[SPEAKER_00]: The car changed, but the plan did not.
13:18
[SPEAKER_00]: I upgraded the thing, everybody could see.
13:21
[SPEAKER_00]: Watch this, and never touch the thing, nobody could see.
13:32
[SPEAKER_00]: When I think about that, I get so frustrated with the younger immature self of me.
13:36
[SPEAKER_00]: because here is why the 26 kept arriving early.
13:40
[SPEAKER_00]: I got paid on the 15th by the 26th, there was nothing left.
13:44
[SPEAKER_00]: 11 days of a paycheck, but I still had 19 days left before my next paycheck.
13:49
[SPEAKER_00]: And a large part of the reason was sitting in my driveway with their payment attached to it.
14:02
[SPEAKER_00]: Nobody, when I was younger, ever explained to me what a payment actually is.
14:12
[SPEAKER_00]: No.
14:14
[SPEAKER_00]: I want this on a screen some kind of way, team.
14:16
[SPEAKER_00]: If we could put this up there, I want you to understand this when I'm about to say, because one bite to say is it is going to offend some of you is going to hurt some of your feelings.
14:25
[SPEAKER_00]: But when I realize this for myself, I change my whole life.
14:31
[SPEAKER_00]: I'm gonna say it slowly, and I want this on the screen.
14:35
[SPEAKER_00]: People, I want this on the screen.
14:37
[SPEAKER_00]: I'm gonna say it again.
14:38
[SPEAKER_00]: Do not edit this out of the show.
14:42
[SPEAKER_00]: A payment is your income converting into somebody else's asset.
14:48
[SPEAKER_00]: I'm gonna say it one more time.
14:51
[SPEAKER_00]: Let me say this, Christian people forgive me.
14:54
[SPEAKER_00]: I'm so grateful I'm not a pastor.
14:55
[SPEAKER_00]: I love to lower the everything on the inside of me.
15:03
[SPEAKER_00]: but look at the hell that you're going through.
15:10
[SPEAKER_00]: You look good.
15:13
[SPEAKER_00]: You smell good.
15:14
[SPEAKER_00]: You pull it up good.
15:16
[SPEAKER_00]: Brothers, the ladies looking at you like, dang!
15:22
[SPEAKER_00]: But that pain management is your income.
15:25
[SPEAKER_00]: That you work Monday, Tuesday, Wednesday, Thursday, Friday, Sunday, Saturday and Sunday.
15:29
[SPEAKER_00]: You're busting your rear and four.
15:34
[SPEAKER_00]: but that payment is your hard work converting into someone else's easiest.
15:42
[SPEAKER_00]: Every month a piece of your first number leaves your account and becomes wealth of somebody else's balance sheet.
15:49
[SPEAKER_00]: Tane don't even know your name.
15:51
[SPEAKER_00]: Tane don't really even give a crap about you.
15:55
[SPEAKER_00]: You pay for the privilege of using it, and at the end, you own a fraction of what you put in.
16:05
[SPEAKER_00]: That's why I don't find it, it's my car anymore.
16:09
[SPEAKER_00]: And I am not going to soften that today.
16:13
[SPEAKER_00]: I do not believe it because I'm ready.
16:17
[SPEAKER_00]: I am purchasing used cars with cash and I'm sitting on my own cash.
16:27
[SPEAKER_00]: I got people, I don't really call them friends, but I got people who like to brag, yeah, I got the ladies and the greatest, Negro!
16:36
[SPEAKER_00]: Wow, you bragging about the latest and the greatest.
16:39
[SPEAKER_00]: I'm sorry if y'all watching this on YouTube.
16:42
[SPEAKER_00]: But you sitting there bragging about the latest and the greatest.
16:45
[SPEAKER_00]: Now here's what you're bragging about.
16:47
[SPEAKER_00]: I'm bragging because my payment, my income, I just gave it someone else for an asset.
16:53
[SPEAKER_00]: And we got to stop saying I'm buying a car so I can ride it all for taxes.
16:58
[SPEAKER_00]: You I can come up with some better ways.
17:00
[SPEAKER_00]: You can use your money to not be someone else's asset to where it can really be your asset.
17:05
[SPEAKER_00]: Know you bought the car because you want to flex.
17:10
[SPEAKER_00]: You bought the car because you want to pull up and you want ballet to leave your car in the front.
17:18
[SPEAKER_00]: So you've financed it, so you went and did your thing because you wanted to fly it without a real strategy.
17:30
[SPEAKER_00]: You see, I purchased cars, specifically used cars, with cash.
17:37
[SPEAKER_00]: Because I want my income to rise, and I need my expenses to stay flat.
17:43
[SPEAKER_00]: $4,000 and $10,000 in higher.
17:46
[SPEAKER_00]: The car came after the money, not before it.
17:51
[SPEAKER_00]: I have been purchased my exotic cars, my exotic, luxury cars, because I want to see her in flex.
17:57
[SPEAKER_00]: I have them.
17:58
[SPEAKER_00]: You know what I'm saying?
17:58
[SPEAKER_00]: I got the real, real expensive cars, but my income went up.
18:03
[SPEAKER_00]: I kept my expenses low.
18:05
[SPEAKER_00]: I was talking to one of my frapp brothers of the day, I said, bro,
18:10
[SPEAKER_00]: Here's what I love.
18:11
[SPEAKER_00]: That if everything's shut down today, I can get in my luxury cars and I could be either two things can happen.
18:18
[SPEAKER_00]: I could be the dopest, looking, broke man on the planet or I could take my cars and I could sell them and I can get 3,400,000 dollars for them.
18:42
[SPEAKER_00]: I really want you to understand what I'll just say right there.
18:46
[SPEAKER_00]: I really want you to think about that every time you find out something.
18:51
[SPEAKER_00]: That your income is supposed to be a tool for you and your family.
18:54
[SPEAKER_00]: It's not supposed to be an asset for someone else's family who don't give a crap about your last act.
19:01
[SPEAKER_00]: So if you're in a car alone right now, listening to me in the car, I am not asking you to feel bad because heck, I find that's one too.
19:10
[SPEAKER_00]: And mine was actually brand new, which was even worse.
19:14
[SPEAKER_00]: Your home started to say this.
19:18
[SPEAKER_00]: Stop, stop bragging about you bought a brand new 2026, 2027 vehicle.
19:23
[SPEAKER_00]: Because to us mature people, we understand that that was done from a financial, from financial,
19:31
[SPEAKER_00]: I'd rather you brag about you finance a three-year-old car.
19:34
[SPEAKER_00]: We're all the depreciation that's pretty much gone.
19:38
[SPEAKER_00]: Live to the world.
19:42
[SPEAKER_00]: Live to it.
19:43
[SPEAKER_00]: I'm sorry.
19:46
[SPEAKER_00]: But let me ask you this question.
19:47
[SPEAKER_00]: Do you see what keeps happening?
19:51
[SPEAKER_00]: Every one of these in the same mood.
19:53
[SPEAKER_00]: The first number goes up and then something quietly attaches itself to it and so the second one.
20:00
[SPEAKER_00]: never gets fed, we keep eating at the second number, which again, don't forget the second number is our net worth.
20:09
[SPEAKER_00]: When are we going to start having conversations with our children about net worth?
20:14
[SPEAKER_00]: When it's the last time you said down with your 15-year-old son, your 10-year-old son, your 18-year-old son, and you asked him the question, what's your net worth?
20:23
[SPEAKER_00]: When it's the last time you asked your son, you'd order that and he said net worth, what do you mean?
20:30
[SPEAKER_00]: Get the dad going phone about their hand.
20:32
[SPEAKER_00]: I don't give a crap about what Tate Talk is saying.
20:35
[SPEAKER_00]: And start educating our children to start thinking differently before they leave your home.
20:43
[SPEAKER_00]: Everybody thinks more income is the answer.
20:47
[SPEAKER_00]: I thought more income was the answer.
20:50
[SPEAKER_00]: I went and I got more income and by the end of the month I was broke.
20:55
[SPEAKER_00]: Let me take you to Oceanside, California.
20:57
[SPEAKER_00]: You see, every Friday a group of us went to the beach to play volleyball, every single Friday.
21:04
[SPEAKER_00]: All of our cars were clean, everybody was looking good and everyone looked like we were doing well financially.
21:13
[SPEAKER_00]: You see, one night you've heard me tell this story, one of my aunts, my one of my friends,
21:19
[SPEAKER_00]: This is the same friend that was driving a Range Rover sitting on 24 specifically spinning wheels 24s.
21:27
[SPEAKER_00]: But the same man who asked him for $5, who was driving a Range Rover sitting on 24 wheels is the same man I was also living with his mom in her basement.
21:37
[SPEAKER_00]: And I want to be honest about what happened next because that the easy version of this story is to make me the smart one and the parkour line.
21:44
[SPEAKER_00]: But I was not.
21:46
[SPEAKER_00]: I looked around at all of us.
21:47
[SPEAKER_00]: Myself included nice cars, but all of us live in our parents and grandparents.
21:53
[SPEAKER_00]: Nobody really had anything.
21:55
[SPEAKER_00]: I was doing the same thing he was doing and a slightly cheaper package.
22:02
[SPEAKER_00]: But that was the night I knew I had to change my life.
22:06
[SPEAKER_00]: Financially, not because I was better than anybody standing there because I really wasn't, because I finally saw that I was honestly one of them.
22:16
[SPEAKER_00]: And here is what was happening to all of us.
22:20
[SPEAKER_00]: when your income goes up, and your lifestyle goes up right behind it, your second dollar does not move a dollar.
22:29
[SPEAKER_00]: He felt the raise for about six weeks, then the apartment got nicer, and the car got nicer, maybe your kids needed a nicer daycare, and you landed in the same place with a bigger number on your offer letter, and the same empty account at the end of the month.
22:45
[SPEAKER_00]: That is why I just make more money is the most expensive advice and a personal finance.
22:50
[SPEAKER_00]: It is incomplete.
22:52
[SPEAKER_00]: More income with the same habits builds a more expensive version of the life you are trying to leave.
22:59
[SPEAKER_00]: Now, somebody watching this is 45 years old.
23:02
[SPEAKER_00]: Has been working since they were 19 and just did the math and realized 26 years of work is not sitting anywhere they can point to.
23:10
[SPEAKER_00]: The years were not wasted, you never would just talk the right information.
23:16
[SPEAKER_00]: So I have the honor of teaching consumer economists at Virginia Union.
23:20
[SPEAKER_00]: My students arrive at 19, and most of them have already worked several jobs, and they do not know what a high-year old savings account is.
23:28
[SPEAKER_00]: They do not even know what interests means.
23:31
[SPEAKER_00]: Listen, the very first day of class I write one word on a board in his court margin.
23:38
[SPEAKER_00]: And to this day, 90% of the students do not know what margin means when it comes to our finances.
23:46
[SPEAKER_00]: Think about what we tell them.
23:48
[SPEAKER_00]: You go to school, get your degree, that agree, get you what, a job or a career, that the job or career gets you what, a paycheck.
23:56
[SPEAKER_00]: So you came all the way for a paycheck and nobody in that chain ever taught you?
24:02
[SPEAKER_00]: What to do with what you were really needed?
24:07
[SPEAKER_00]: So let me give you the order, because the order is to strategy.
24:12
[SPEAKER_00]: Everything I have watched fail, including my own 20s, failed on sequences, not on effort.
24:22
[SPEAKER_00]: So let me give you the order.
24:24
[SPEAKER_00]: I want to give you the order.
24:26
[SPEAKER_00]: First, you build margin.
24:29
[SPEAKER_00]: You see, margin is a gap.
24:32
[SPEAKER_00]: Plead is, margin is a gap between what comes in and what goes out and without it, nothing else in this video is available to you.
24:42
[SPEAKER_00]: You cannot buy anything that pays you with money, you do not have left.
24:48
[SPEAKER_00]: So, what I'm specifically saying here is we have to give our money direction before the month starts.
24:55
[SPEAKER_00]: Listen, a budget is not punishment, it is, it is, it is you deciding where the money goes instead of finding out after so many videos and I've seen so many interviews like, you know, budgeting is not enough.
25:07
[SPEAKER_00]: I never said budgeting is enough, but budgeting is the foundation.
25:12
[SPEAKER_00]: Budgeting is very, very important.
25:15
[SPEAKER_00]: Here's the second thing.
25:16
[SPEAKER_00]: You build your freedom number.
25:19
[SPEAKER_00]: Your freedom number is the beginning number of 36 months of your net page or your take home pay.
25:25
[SPEAKER_00]: The number that actually hits your account.
25:28
[SPEAKER_00]: I'm not talking about three to six months of essentials.
25:30
[SPEAKER_00]: No, no, no, we over here, I want you to have three to six months of your net pay.
25:36
[SPEAKER_00]: And here's why.
25:37
[SPEAKER_00]: An essential only cushion means that during the most consequential stretch of your work in life, you are living a stripe down, a stripped down version of your life.
25:49
[SPEAKER_00]: A person living scared makes what scare decisions.
25:55
[SPEAKER_00]: They take the first offer that comes in.
25:57
[SPEAKER_00]: They take the first opportunity that comes in.
26:01
[SPEAKER_00]: That is a shorter leash that's not really freedom.
26:05
[SPEAKER_00]: And you already know this number.
26:08
[SPEAKER_00]: It is one number of a direct deposit.
26:11
[SPEAKER_00]: You can do this in 10 seconds at a red light.
26:15
[SPEAKER_00]: I make $5,000 a month.
26:16
[SPEAKER_00]: I need to put $15,000 off.
26:21
[SPEAKER_00]: And then the third one, y'all, you've got to kill your consumer debt.
26:26
[SPEAKER_00]: I'll talk about this inside of my brand new books, I'll live in Patriot of Patriot.
26:29
[SPEAKER_00]: You got to go out to that smallest balance first, every single time, and then just gradually work your way out there.
26:37
[SPEAKER_00]: I know some of y'all about to bring up the anxious rate.
26:39
[SPEAKER_00]: You got a credit card with 26%, and a card with 11%, and a math says, go after the 26%, okay, I hear you.
26:47
[SPEAKER_00]: But I only teach the death snowball method because I need to get quick wins.
26:51
[SPEAKER_00]: The moment we can get quick wins, the head is the moment that is the moment we feel excited.
26:57
[SPEAKER_00]: Because here's what I've learned.
26:58
[SPEAKER_00]: A plan you quit returns, zero percent.
27:01
[SPEAKER_00]: It does not matter what rate it was aimed.
27:06
[SPEAKER_00]: So you clear the smallest one, and it disappears completely.
27:10
[SPEAKER_00]: And when you see that win, you're going to be excited.
27:12
[SPEAKER_00]: And here's the fourth.
27:14
[SPEAKER_00]: And only fourth, you buy things that pay you.
27:18
[SPEAKER_00]: Now the margin has some where to go, retirement accounts, index funds, ETFs, a home bought responsibly when you are ready for it.
27:27
[SPEAKER_00]: This is where everybody wants to start and starting here while you're carrying unnecessary high cost consumer debt as how people stay busy for a decade without moving.
27:39
[SPEAKER_00]: And here's what my doctoral work keeps confirming.
27:43
[SPEAKER_00]: Winning with money in America takes a system you actually follow.
27:47
[SPEAKER_00]: And the system is not attractive.
27:50
[SPEAKER_00]: There is no hoping your way into it.
27:52
[SPEAKER_00]: The people who get free ran a unglameless, unsexy, boring plan in order for years while it was just extremely boring.
28:06
[SPEAKER_00]: And if you want to get that plan, go to anthoneel.com for slash book or just go to Amazon.
28:13
[SPEAKER_00]: I think Amazon at the time of me recording this, the book is on sale for 19 bucks.
28:17
[SPEAKER_00]: Man, we made it into the top 100 business and money books.
28:23
[SPEAKER_00]: It was absolutely amazing.
28:25
[SPEAKER_00]: But family, I want you to start asking yourself, two times a year, what's my network?
28:37
[SPEAKER_00]: Start educating your kids, what's your net worth?
28:42
[SPEAKER_00]: Peers, people around my same age, start asking your parents, what's your net worth?
28:49
[SPEAKER_00]: Because at the end of the day, it is the net worth that is gonna provide a lifestyle for us when we get older.
28:57
[SPEAKER_00]: And if you're in your 20s and 30s and 40s and you're not thinking about your 50s, 60s and 70s, I feel sorry for you.
29:08
[SPEAKER_00]: I was talking to one of my young friends.
29:09
[SPEAKER_00]: He's a mid-30s, and he got there whileing.
29:13
[SPEAKER_00]: He looked good, living in a house just as big as me.
29:17
[SPEAKER_00]: He got a beautiful car, just as nice as me.
29:19
[SPEAKER_00]: That didn't even make half of my income.
29:22
[SPEAKER_00]: But every time he pulled up to my house, he got a beautiful young lady with him.
29:27
[SPEAKER_00]: Well, yes, I did, it came to the house without a lady.
29:31
[SPEAKER_00]: And I said, bro, just make sure
29:39
[SPEAKER_00]: your mature 55 65-year-old self will say thank you because there are some decisions that I made in my 30s around relationships around business around money that man my 55-year-old self is not going to lie so my 40-year-old self is trying to make better decisions to make sure that my 55-year-old and 65-year-old self will say thank you.
30:07
[SPEAKER_00]: Two times a year, mask myself, what is my network?
30:14
[SPEAKER_00]: I'm gonna end today's show with this question.
30:17
[SPEAKER_00]: What's your network?
30:19
[SPEAKER_00]: Maybe can't answer it.
30:22
[SPEAKER_00]: Babe would answer it next show.
30:23
[SPEAKER_00]: See you next week, Lisa.