Latest / Financial Survival Network / An Easy Approach to Creating Simple Wealth -- Holly Morphew #5789

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An Easy Approach to Creating Simple Wealth -- Holly Morphew #5789 · Financial Survival Network

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You're listening to Carrie Letts's Financial Survival Network, where you get valuable information you
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and welcome. This is Financial Survival Network. I'm your host, Carrie Letts.
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Well, a lot of people have written a lot of books about how
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to become wealthy, how to make wealth, but you're about to hear about
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one right now. It was rated as one of the top ten personal finance
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books or twenty twenty two by the distinguished The Bank Rate, which is an
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interesting site you should take a look at when you have a chance. Number
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one Amazon best selling off her Harley Holli more Fhew is with us now and
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Ali. So Simple Wealth kind of sums it up. What is simple wealth
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and how do I get some? Yeah? Well, Simple Wealth is is
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a book about how to reach early financial independence while creating personal wealth along the
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way. So you know, my own experience with wealth buildings started in my
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twenties where I was a high earner and I realized I was living paycheck to
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paycheck, and I had a lot of debt, and I was kind of
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doing mental accounting at the time. And we had three back to back snowstorms
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in Colorado where I live, and at the time, I drove a Honda
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Chord and my office was forty miles from my house, and and I realized
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if I went to work that day that I'd be risking my life. And
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so I thought, through, you know, what am I doing, Like
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what am I doing in life? I'm going to risk my life to go
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to a job so that I can pay my bill. And in the back
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of my mind, I'm thinking, I know, I have a lot of
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credit card debt. There's always more month than money. And I just had
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this anxiety. It was really like I had financial anxiety, even though I
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come from a family where we talked about money at the dinner table. My
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dad's an entrepreneur, my grandfather was an entrepreneur. My mom's a real estate
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investor, her parents were real estate investors, and so I understood money from
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a young age. But nonetheless I found myself living in this, you know,
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sort of state of just financial anxiety and not really knowing what to do,
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and so I did make it to work that day, made it home
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safe and sound, got out my credit card statements, looked at my balances
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for the first time in a very long time, and realized I had sixty
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seven thousand dollars of credit card debt. Okay, So next day, call
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my financial advisor, explained the situation, and then the first question he asked
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me, how much more money do you want to invest? And this was
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my AHA moment. Carry this is where this is when I realized that there
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was a big gap between what a financial advisor he was helping me doing,
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which is invest money that I already had, and what I really needed help
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with, which is which was to create more money to invest and to get
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to a point in life where I had more freedom in choices where I wasn't
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working sixteen seventy hours a week and one day work could be a choice for
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me, like I could see the end of the tunnel. And so that's
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where it began. You know, I just created a system. I applied
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it to my personal finances. Three years later, totally debt free, kept
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on going money in the bank, became financially independent in my thirties, and
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today I have eleven streams of income, and that's what I'd do. I'm
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a financial coach. I help other people reach early financial independence and just get
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their money sorted so they feel awesome when they think about money. Yeah,
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well that's that's a noteworthy accomplishment. So how did you do it? Obviously
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you had an epiphany that it wasn't worth the forty mile drive through hazard is
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terrain just so you could make your credit card payment, right, Yeah,
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yeah, I mean it started with okay, let's actually look at the numbers.
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You know, what's my cash flow, what do I have coming in,
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what do I have going out? And what do I have left over
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to put to its highed and best use. So I call that awareness.
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You know, I always say awareness is the seed of transformation. So if
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you don't like where you are, let's look at where you are right now,
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without any judgment, and let's just get some information. And for me,
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it was like, okay, I'm pretty much paycheck to paycheck, but
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I've got maybe one hundred bucks to do something with. How can I increase
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I call it your impact number? How can I increase my monthly impact numbers?
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So I've gotten more money to play with. So that was the first
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thing I did, and for a couple of years it was about you know,
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eliminating expenses that I didn't really need or reducing expenses. But then I
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realized, you know, I can get to financial independence a lot faster if
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I increase my income. So I created my first additional stream of income.
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In two thousand and five. I was, you know, working my full
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time job, but I added I realized that I was watching about five hours
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a week of TV, and I thought, okay, well what if I
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replace this was something that was income producing? So I like to think about
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income producing activity. So I got connected with a company that I really liked
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and started sharing the products of this company and making an extra three to five
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hundred bucks a month. And that was great. But then the recession happened
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and I lost my job. That was in two thousand and nine. So
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here I am, you know, back to square one. I fell back
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on that part time income at the time, Thank god, I had some
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kind of income coming in. I increased that income and then I just started
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thinking about what are some other things that I can do with my extra money.
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Eventually got another full time job, and that's when I got really serious
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about investing in real estate, and that was my first big investment, and
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that's been really one of the keys to my financial success has been investing real
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estate, cash flowing real estate, not fix and flips, not buy and
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hoole, but cash flowing properties. What kind of properties you look for,
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Holly, Well, I've got single family properties, so you know, monthly
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rent exceeds monthly expenses. And right now, the even with the current state
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of the real estate markets around the country and higher rates, can you still
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find these properties you're looking to add them to your portfolio. Well, at
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this point, I'm I'm just hanging onto the assets that I have, and
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I'm more interested in creating, like scaling business. So my company is called
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Financial Impacts. So just like I have multiple streams of income and my personal
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finances, my focus is really and my energy and my excitement is really about
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creating businesses that also have multiple revenue streams within them. So I'm not actively
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buying properties anymore. Plus, I live in Colorado, which is a pretty
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expensive real estate market to begin with. So I have the properties that I
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have, I'm very happy with them. I take really good care of them.
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I also managed them myself. That's not for everyone, but that's something
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that I've chosen to too. Tennants and toilets, preach my friend, But
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that's the thing. Yes, Yeah, So you buy properties local or you
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agnostic as far as location goes. What do you look for in a property?
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I look for properties that are in areas where there are jobs. So
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we're talking you know, universities, hospitals, close to a metro area,
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and generally a property that's got at least three bedrooms, two bathrooms, one
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that's you know, easy to turn. One of my properties actually is a
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short term rental and I've been doing that for about four years and that's been
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really interesting. It's it's very high touch. It's a lot of work.
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You know, people ask me all the time, you know, should I
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invest in a property for short term rental? And it's like, you know,
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if you've got a great team, a great cleaner, and you know
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you want to interface with people constantly, yes, But if you're trying to
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be a silent real estate investor, that's not that's not the right path.
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Yeah. The cleaning up is the weakest link in short term rentals from everyone
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I've heard from. I've got a friend here in Florida. I've been like
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Port Saint Lucy in that area and tried to find numerous cleaning people. Pays
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them double what they can make cleaning houses, right, but they have to
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do it, you know, every two three days, a deep clean because
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you can't have any crud in your short term rental because people expect it to
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be like a hotel room, right, and they're paying for it. And
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that is the hardest thing to fight. How do you incentivize somebody to be
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a decent cleaner and to be thorough. I haven't heard a good answer to
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it paying the fat tax. So if I want to have a great result,
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then I'd have to be willing to pay for it. Okay, so
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you've got to Yeah, I totally get what you're saying there. And as
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you can find that person, well, if you're making more money cleaning places
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for you, then they could be in the open market to doing an office
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job or whatever. Maybe that's the way to go. So you like a
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long term do you like for a short term vacation rental market? Obviously Colorado
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you've got ski season in the winter and you've got the outdoor sport activities in
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the summer, so it's more of a year round kind of thing. Can't
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do that everywhere now, I think that's really key, and thank you for
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bringing that up and for anyone who's listening who has an interest in this.
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You know, for a year round short term rental to have consistent months,
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and you have to remember this as a seasonal business. You know, real
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estate a sort of seasonal anyway, if it's short term or medium term.
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But you do need to be in an area where people are actively traveling into
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for various reasons. You know, my house happens to be in a town
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that's just outside of Boulder, Colorado, which you know, it's not a
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town that anyone's going to say, hey, I'm going to go visit this
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town, but because it's so close to Boulder, in Denver and Fort Collins,
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and it has easy access to the mountains, and you know, there's
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tons of weddings that are happening and lots of races that come into town,
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so you know, the place does stay booked. But this year, actually
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in twenty twenty two, has been the slowest short term rental market that I've
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experienced since twenty eighteens. It's been going on five years that I've been doing
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short term rentals. Yes, that's economic related here it so twenty twenty two
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was the best year yet with this one short term rental rolled into twenty twenty
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three and just crickets and I have a lot of friends and my family's also
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in the real estate business, both short term and long term rentals, and
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that's been the consensus across the board is that most people short term rentals bookings
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have dropped in twenty twenty three. And I have to ask myself did this
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have something to do with the massive amount of money that hit the market last
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year in the form of EIDL loans etc. To you know, get people
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through the pandemic, And now that stuff is drying up, student loans are
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coming back. There's just there's a lot of I think trickling down from the
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pandemic that still hap and still impacted people's personal finances, which impacts their ability
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to travel and spend on travel. Hey, a very close friend of the
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show is a bought a large property in Canada near the oil field where there's
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shortage of worker housing and rehabbed it. An amazing job on it and just
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about ready to start cash flowing. In that case, it's a highly specialized
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thing. It's a year round market. You know, these oil workers come
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in, they're on a on for four weeks, off for two weeks,
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or crazy schedules like that. So in that case, different types. So
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there's a lot of ways to cash in on the short term rental phrase Airbnb,
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the RBO, obvious obvious ones, but even more so, there are
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these little niche markets here that maybe you never thought of. For sure.
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You know, traveling nurses are always looking for months to months or three months,
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you know, rentals, and that could be really beneficial for someone who
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you know. The downside and my experience of being a long term rental property
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manager is that you know, people get into the property and a lot of
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times because I don't have eyes on it because let's say it's a year lease
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or two year lease, by the time I get in there, there's stuff
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that that I didn't know that had, you know, maybe there was a
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slow water leak or something that I just didn't get to look at to repair.
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And so what I like about short term rentals that I get to see
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the property every time someone checks out, and if a repair needed, I
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can do that. So the property does stay in better condition, but it
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is a lot more maintenance in time. Okay, so we talked about real
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estate, what other avenues to building wealth cash fload. Do you see out
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there that you think are the trend is a favor? Yeah, I mean
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I think for anyone who's looking to create personal wealth, it does come down
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to two things. It's it's positive cash flow and positive net worth. And
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I feel like positive cash flow is where the game begins. So, you
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know, if you can create just another stream of income to maybe make the
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car payment like it was for me, or to support the mortgage every month,
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and whether that's MLM, multi level marketing or direct sales, that's a
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plug in play system. There are a lot of great companies out there.
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That was my first additional stream of income. Again is what works for me,
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what I like to spend my time, energy, resources doing is not
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going to be the same thing for everyone else. And so when I'm working
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with client as a financial coach, my first question is, you know,
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what's your definition of financial success? What are your core values? What do
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you want to spend your time doing? Because some people want to be out
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there hustling, and a lot of people don't. They want to come home,
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put their feet up, play with their kids, whatever, And you
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know, then we're looking at a different you know, monthly cash flow.
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Maybe that's dividend stock investing. And of course I'm not an accredit I'm not
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a financial advisor, so I'm I'm sort of prohibited with my accreditation, which
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i'm an accredited financial counselor from telling people where to put their money in the
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market. I'm not the person that's going to help build portfolios. But definitely
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when I'm looking at my different streams of income. And that was how when
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I was in my twenties and my financial advisors asking me, well, how
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much more money do you want to invest? It's like, well, what
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if I save my financial independence number, which is over three million dollars,
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because that's just the kind of lifestyle I like to live. You know,
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we all like a different kind of lifestyle. But if I want to save
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that and I get to age, say sixty seven, and I'm ready to
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quit working at that point, we have another recession of two thousand and eight
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or pandemic and my three mill goes down to two, well, I'm not
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going to be very happy. And so that's why when I think about other
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income streams, it's like, what can give me a monthly cash flow,
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whether that's MLN, starting a a side business. Maybe you create a course,
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maybe write a book, maybe you write a song. Then of course
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there are the things that come with selling the things that you've created. You
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know, because I hear a lot of people say, Holly, I want
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residual income. How do I do that? I want it right now?
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Well, we need type capital or energy to create residual income. And that's
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the truth of it. And so what are you willing to show up for?
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You know, what are you willing to show up for for a period
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of time, whether it's building the e course so that you don't have to
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show up as much down the road, but it still does take some degree
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of marketing and outreach, endlist building, etc. All right, I think
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we got a good handle on this, so simple wealth. That's the book.
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I guess we find it on Amazon and wherever fine books used to be
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sold, and hey, wish you the best on it. People want to
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find out more about you, connect with you on the web and and you
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know, see what you're all about. How do you do that? Financial
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impact dot com great site, financial impact dot com. There's a link to
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it in the show notes. This interview on Financial Survival Network dot dot com
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just click the link you'll get right there. While you're there, take a
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look at the newsletter. Sign up for it. You'll get it weekly.
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Great but taking a little hiatus from it, but it's going out today.
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Ali really appreciate your stopping by, and hey, we'll talk to you again
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soon. Thanks, carry it's been a pleasure. Thanks for listening to carry
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Less. Financial Survival Network your solution to today's trying times. For the latest,
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go to Financial Survival Network dot com. Financial Survival Network now more than ever,