Friends, today is the day to break the vicious cycle. We are trading our time
for money and if you never get out of that cycle especially if you don't like
your job, you're going to look back on your life and say man, I wasted all on my
prime time on doing things I really didn't like. Today I'm not just going to
talk about trading dollars in hours, today I'm going to share with you how you
get out of that rat race.
So on this video, I'm going to be sharing with you how to stop trading time for
money. I'm not just going to give you this rant of, don't do that, make your money
work for you. I actually want to share with you
exactly what it looks like and how you blueprint this out so what we're
going to do here is, we're going to start with you
and I'm going to give you this beautiful depiction of you, it's this happy
stick figure person and you were frowning but you're happy now because
you had already watch this video you're like, oh my gosh, I'm going to implement this
and this you and your household, what you do is you end up producing an income and
I'm going to ask you to actually take some of that money and put it in a brand new
bucket if you've never done this before. This bucket is where you're going to put an
excess of money, it's not a 401k, it's not IRA because understand that those
investments, they're not really designed to create the financial freedom or
independence that you're going to want when retirement comes around you're going to get
to an age where you're like, I don't want to work anymore, I can't trade my dollars
and hours, I need my money to work for me and in society's plan, in a lifetime, the
average person cannot create enough money to go to work for them unless you
get on a different wavelength and a different financial plan and I'm going
to talk about that plan right now. So first of all, let's just say that right
now we've got the average household in America, the combined income is around
$80,000. I'm going to invite you to do something different than you've been
doing before, the most important financial decision of your life which is,
before you pay any of your bills, before you put that money towards cars and
groceries and and and taxes and etc, I want you to take from not a percentage
and I want you to take a percentage of that money and I want you to drop it in
this bucket and this is your freedom bucket.
Now I'll give you an example of this. If you were doing $80,000 a year and you
made this 10% then by the end of the year, how much would you have in your
freedom bucket? We'd have $8,000. If you only could set
5% away, it would be $4,000. If you're like most Americans you live check to
check and I want you to know it's not because you don't make enough money, it's
because of the way you look at money, it's the way that you had your spinning
habits. Parkins law dictates that whatever
amount of money you make you're going to increase your level of lifestyle to meet
it so by the way, if you were making $50,000 a year, you're likely spending
$45,000 to $55,000 a year but if all of a sudden you get this
crazy raise and now you're making a hundred thousand a year, you're going to
adjust very quickly your lifestyle so that you're spending between $90,000 and
a $110,000 a year and then all of a sudden you're
making a quarter million dollars and if you're like most consumers, you're now
going to be spending somewhere between $230,000 and $270,000
a year and I know that most you've got to be
watching this like, Kris, you crazy man. If I double my income, I wouldn't do that.
You think that all you want, your consumer minded training habits is to
spend whatever you got. We're going to break that pattern by helping you put money
into freedom bucket for different purpose because every year that I work,
this happy person is making $80,000 a year or if they're making $20,000 a year.
That was like me, I started with so little and I was check to check and I
want to make you promise that if you'll pay yourself this money and
automatically withdrawal it, every month first no matter, what you're going to see
your world change because you treat it like an expense. It's called paying
yourself. Now paying yourself is the first step towards making your money
work for you instead of you working for it and let's talk about what you can do
with that $8,000. What's going to happen each year is you're going to put money in
this bucket and this money is going to go into one of two places. We've got
another bucket down here and this bucket is called security and security means
I'm going to take a percentage of this money and I'm going to put it away because
I need to develop my my peace of mind. This peace of mind is worth so much more
than whatever it is that you're buying to maintain in your life
style but once this what's this peace of mind which let's just say that it
represents three to six months worth of living then the rest of the money is
going into your investment bucket but this is investment bucket number one,
that would mean that there's more buckets that's because we don't put all
of our eggs in one basket. That's how you actually lose everything and
don't get where you want to go in life so we're putting that money in our
investment bucket number one and let's just say that that money is set aside
and what you're doing is you're buying a home. I do real estate, we will do other
examples but you're buying a property and you're like, well, Kris, if I buy a
house to live in that's a $5,000 or $6,000 downpayment for me in my
household, I've saved up enough money for that but I bought the house smart, I
bought it with $40,000 of equity and I bought it, I lived in it for a short
while, later I'm going to rent it, I'm going to make $500 a month on my
investment. Look at what's happening right here. I got money in my security bucket
which by the way instead of my savings account, too accessible, you got to really
train yourself and be disciplined. I might put this into a whole life early
cash out policy that's producing 6% to 7% percent on my money. Now I've got
this money, is it a lot of money? No but the amount does not matter, the
principle matters. My investment, my house, when it's paying me $500 a month, is that
a lot of money compared to the $80,000 you're making a year? It's not, it's an
extra $6,000 but this is the part that I want you to know. We now
have some money here, we have some money here and we have an asset here meanwhile,
we're putting more money here and what we're going to want to do is we're going to
start working on investment number two. I want to compound this investment,
I want to compound this money. I'm doing that by rolling some of it into my new
investment, having some of the money from over here, this is now producing more
residual and does this have to be real estate? It actually doesn't. I diversified
by being in lots of single-family homes but I diversify in a lot of other ways.
Also, there are other with business ideas that I love to
invest in because people in many areas are smarter than me. There's this kid
that figured out how to take $120,000 prosthetic that people
can't afford and he figured out how to use a 3D printer to get them down to
$5,000 and make that available to people in the world. Wow,
that kid is going to go somewhere, right? You're going to hear if you put yourself in
the right time and place about opportunities investments, sometimes
they'll work, sometimes they won't but that's okay because that's less risky
than doing something that is guaranteed never to work. Parkins law, never having
enough at the end of the day no matter what. What we're going to do with time is
we're going to diversify and we're going to open up more buckets. Let's say this is
another real estate bucket, we compounded some here, we put some over here, this
went into another property and here are the here are the two things that you
need to understand, the first and most important decision that we're talking
about here is the percentage that you are going to save. It's better aptly put
pay yourself that it will turn into both savings and investing and then number
two is, you've got to utilize the benefit. There's no more financially powerful
concept in your world then compound interest. Compound interest is one of the
most important things that you can get working for you because for some of you
for example, I know some of you are watching this show like 18 years old
you're like, I don't need to save for retirement, I'm just a kid.
Not so. Now is the time to actually start because it's from having a couple
hundred dollars accumulating over time that it turns into enough to buy a house
or invest in something and maybe that investment will or won't work out but
you have a lifetime now of commitment of savings and trying having some work and
some not but then the magic is when you compound it. All of these investments, if
you're even just doing 8% to 12% on your money, then a couple years from
now as that compounds that can turn into 20% or 30%. A few years from now,
your original dollars could be earning you a 100% or 200%
and there's no reason why it can't keep going on and on and on. You
might actually get with me and say, Kris, you talked about partnering and
you don't even need to save money and I can use my brain and use this to start
another invest bucket with partners. Can I do that? You
can absolutely do that. My partner profits course teaches you step-by-step
how to present your ideas in the right way, how to find the people with money
and then make deals happen and all of a sudden you're now even doing deals that
where you're using your brains and you're not even using any money to
actually grow your financial wealth, your net worth and your empire and friends,
this is an empire that we're talking about building and growing and I'm not
here to tell you in this video what you're supposed to invest in. Well what I
am here to do is to tell you about three really important principles of how you
get your money working for you. Number one, pay yourself. If you can't understand
how on earth you have leftovers to do that, you're thinking up the wrong way.
It's got to come off at the top and the money is always there when it's off the
top, it's not always there if it's at the end. Number two is you got a compound
that which means hold these investments. What seems small and insignificant today,
$50 here $200 there in time becomes a $1,000
here $5,000 here. In time becomes a $100,000 here,
$200,000 here. In time becomes a million dollars here, several
million there, in time becomes a billion dollars here, several billion there. It
compounds and it grows and here's the third and final principle that I want to
share is diversifying. Don't put all your eggs in one basket, I don't buy one big
real estate property, I buy several small ones. That is a form of diversification. I
have commercial deals, that's a form of the diversification, I have business as I
invest in, even my own. That's a form of diversification. The whole thing that
makes this possible is these three baseline rules so friends, if you want to
make your money start working for you, then this is really what it comes down
to at the start the genesis. Instead of you working for money which you're going to
be doing for some time now, you've got to take some of that hard earned money and
you've got to put it to work for you as opposed to hoping that the next raise,
the next bump and the pay the better job eventually will make the difference
where you can start savings and getting ahead. It's a principle and every one of
you no matter how young is capable of doing it right now because
in the beginning, you'll have all this money that you're working for and a
little bit of money that's working for you, compound that, wait, then it'll be, I'm
working hard to make this money, oh my gosh, my money has grown into something
that's paying me and then a time what you're trying to do is get the money
that's working for you to squash the amount of what you're doing to work for
it till one day it just doesn't even make sense anymore to be doing whatever
you were doing to trade money for dollars. Where do you go from here?
First of all, make the number one most important decision on your life right
now, know exactly what you're going to set aside and then find a way to
automatically debit back, pull that out and get it to safety so it doesn't just
become one of the lost bills that years from now you're like, where did all that
money go that I need? And have it mean something for you. Start with that first
decision, let it build, let it accumulate and then you'll find yourself one day
waking up as an investor saying, I've got money to invest with, I've got my first
choices in front of me and you two can make it.