David Jose came with a warning about a real estate deal, he said, cost him thousands of dollars. “This guy, he’s lived for free for three years and he walks away
What is the wisest financial advice you have heard from a rich person?
I’ve interviewed more than 400 experts, millionaires, and influencers on my podcast.
Many of them are worth $50,000,000+ and many more are experts at the craft of generating and growing their income.
On top of this, I’ve built a thriving and profitable business for myself and earned enough money that (if I wanted to) I could retire and spend the rest of my days traveling.
These are the lessons that I learned on my own wealth building journey and the ones that (I believe) will have the greatest impact on yours.
1. Don’t Save For a Rainy Day, Save to Invest in Assets
Most people save money for a rainy day.
This is the wrong way to do it…
Sure, you should stock aside 3–6 months worth of living expenses to cover your ass.
But the vast majority of your savings should be allocated towards investing to create wealth.
Here’s the deal…
Having $10,000 or even $100,000 in a savings account and maybe you’ll earn 1% interest isn’t going to change the game for you. Consider that inflation increases 1–3% every year so you’re losing money actually even though you are “saving”.
However, putting that same amount into the right index fund, real estate deal, or business could help you earn 10%, 30%, or even 100% back on the initial principle.
Save just enough to cover a few months of living and then invest ALL of your excess capital into cash flow producing assets, assets that have the ability to multiply in value overtime or preferably both.
If you do not own assets you are working inside someone else’s asset.
2. You Can’t Save Your Way to Wealth
If you spend 30 hours a month clipping coupons, negotiating to save $10/month on your cable bill, or spending an entire afternoon fighting in court your $50 parking citation and finding ways to scrimp and save spare change, you might be able to cut $500 to $1,000 a month in spending.
But after a certain point, you can’t cut costs anymore.
However, there is NO cap on the amount of money you can EARN and those same 30+ hours could help you generate an additional $500, $2,000, or (if you know what you’re doing) even $10,000 in extra revenue per month.
With this model, you can have your cake and eat it too.
I don’t believe in saving your way to wealth I believe in creating so much value that you have a surplus of cash every month so this isn’t even a question.
You can live the life you want to live, enjoy your “guilty” pleasures, and still have more than enough money to carry you through the hardest of times and invest in lucrative deals.
The most important thing you should be concerned about saving is your time. Save yourself from doing stupid things that don’t add value to your life and steal away your finite energy.
3. Passive Income is Worth 10x Working Income!
This one is hard to grasp especially for high earners.
Every dollar that you earn passively is worth $10 that you earned by trading your time.
When you generate passive income, you create the ultimate form of freedom.
Let me ask you…
Would you rather earn $12,000 a month working 70 hours a week and killing yourself to bring home the bacon?
Or $4,000 a month that you have to do NOTHING (or very little) to acquire.
The answer should be obvious especially, when you consider stress, time, energy, family and lifestyle factors.
For instance, my book the Dating Playbook For Men sells very well on amazon and is impacting 1000s of single men’s romantic lives every month, yet the royalties from that are more than enough to cover my expensive rent, car payment, gas and insurance.
But there’s the thing.
I wrote that book years ago and the royalties are still coming in every month. It’s a fantastic way to add value while also meeting my goal of earning passive income.
Now back to you, consider that once you’re making $4,000/month in passive income there is nothing stopping you from working an additional 10–15 hours per week to increase that passive income overtime to $8,000 then $10,000 and beyond.
I don’t believe it’s healthy to just stop working entirely and do nothing with your life since you have passive income, so I recommend you focus a few hours per day doing something you enjoy to slowly increase that passive income.
You’d be surprised at how quick you can grow your passive income when you are working on your OWN time, for YOURSELF, with low stress. You’d likely get more done in that 10–15 hours than you would 70 hours working for someone else doing something that is slowly killing you.
It’s actually kind of fun and just becomes a game of how much passive you can add monthly.
The quicker you can get your money working for YOU and generating cash while you sleep, the quicker you’ll be able to live the life you want, reduce your stress and likely live longer too.
4. Debt is Modern Slavery
When you owe money that you don’t have to someone else, you are effectively their slave.
I’m not one of those financial pundits who will tell you to cut up your credit cards.
I have several cards that I use (and then completely pay off) each month to earn points and make sure that I’m capitalizing on the opportunities offered by credit card companies.
The trick is that you have to PAY THEM OFF each month with an automatic payment and never worry about it.
Every year I get a nice check with my 2% cash back credit card for using their card that is equivalent to a months paycheck. It’s my annual bonus for doing nothing.
Another card gives me amazon points and I save them up for an entire year and treat myself to a nice gift like a new computer, camera or television set all for free paid with points. Basically, all my electronics are purchased with points.
I do want to mention that there is such thing as GOOD DEBT that is often used in real estate deals, which is when a real estate asset produces more than enough cash to cover the monthly debt payment. But for the purposes of this post I’m focusing on personal debt because it tends to really set people back financially.
5. The Best Investment You Can Make…
If you want to make more money than you currently believe is possible, then there is one investment that you MUST make.
The investment in YOURSELF.
Books, podcasts, courses, events, coaching is what I’m talking about. You can learn more about what I offer in my profile, but wherever you go you want to ensure the person you are learning from has a track record of REAL RESULTS.
I have never met a wealthy person who didn’t invest in himself in some way.
When you grow your skill-set, knowledge, and social network, you are directly increasing your ability to earn more money and create lasting wealth.
Plus it’s fun!
You can’t calculate the ROI that one powerful idea or one good connection can have on your life.
You are only one skill-set, one connection, or one big idea away from your first million dollars.
The day your life will change forever is the day that you start investing in yourself like your life depends on it.
Hope this helps.
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