Well. Hey, guys.
So today we're going to talk about some money management secrets.
So there are very different strategies with the way people make money,
spend money.
Use the tax laws and then invest.
There should be no surprise to all of you.
But of course, this is going
to vary widely from city to city, state to state in the nation.
But generally, 80% of the people must work.
A lot of them are sort of paycheck
to paycheck scenario and they can't afford not to work.
So the biggest issue in this category is these people are trading their time
for money.
They've given up their personal financial freedom to somebody else.
They have to work until they can't work anymore.
And this is exactly why you're starting to see
a lot of older people now coming back into the workforce.
Then you have the next level, let's just call it the people that must work squared.
So these are the people that are working multiple jobs.
They're hard working people.
Maybe they're getting higher paid jobs.
Maybe they're trying
to climb the corporate ladder or they get locked into these plans
that these corporations offer to keep them there
for a long period of time until retirement.
And then the final 5% are the people that it's generational.
There are real wealth strategies
that actually have serious strategies around how to make money.
So let's start with the first category.
The majority of the people, the 80% are the ones that are getting killed right now
from inflation because inflation is rising way faster than wage growth.
These people are hard workers.
They're trading their time for money in the form of a paycheck
that may or may not be keeping up with the economy today.
Problem is that they only have one source of income,
and that's from the employer that they work with,
and they're completely reliant on that employer giving them
an increase, giving them a bonus or increase in their territory.
Or increase in their bonus structure or whatever it might be.
They're completely reliant because they have one source of income, in my opinion.
These people are the most vulnerable There is often times
when they make a lot of money, they buy bigger stuff,
better stuff, newer cars, bigger houses, those kinds of things.
And they're literally just keeping up with the Joneses.
They put all their money into a personal bank account.
Now, this is important.
I'm going to come back to it in a minute.
And they pay all of their personal expenses
out of that personal bank account, and then they have a net.
And from there, maybe they start to think about investing for their future.
If you're in this category, there is a better way.
So stay tuned and don't beat yourself up too much because this is exactly
how everyone starts.
This stuff is not taught in school.
You don't have to worry.
All you have to do is listen and make a few changes.
So the next category I'm talking about is must work squared.
Now, the reason I put it like this, I was barely keeping up myself.
So I started to work on multiple things,
trying to get multiple sources of income just so that I wasn't relying on just one.
And this is when I learned the difference between active income and passive income.
Passive income is money that comes in when you're sleeping
Active income is literally trading your time for money.
The reason I put to here, a lot of people are working
multiple jobs just to keep up with their normal expenses.
So pro tip number one is that you could actually set up
a business account for the active and passive income streams
once the active income goes into the business bank accounts.
Then the IRS says, Hey, this is an actual business.
So now you can actually take your business expenses
and write those checks out of your business account.
And many of those business expenses, these are changing.
So you need to verify them.
But they can be things like working from your home office,
your Internet gas for your automobile, your cell phone,
health insurance, child care and personal development.
This one I love because you could actually hire a coach.
You can actually go to a course for personal development to grow your business
and learn more about management or leadership or continuing education.
All those things are business expenses.
That can come out of your business accounts legally per the IRS.
Make sure you check these expenses with a qualified accountant.
So now after your business accounts minus your business expenses,
now you have your personal account, which is another bank account
that you actually have that separate from your business.
And out of there, you pay your personal expenses,
the ones that the IRS does not allow you
to deduct from their you have your investment dollars
that allow you the opportunity to now look for more passive income opportunities.
The pro tip here is creating your own business account as a consultant.
As a small business, you can start to do things
at a business level and have real business deductions
to lower your personal income here and then pay your personal bills,
relieving a lot of expenses that you might normally pay through your
personal bank account.
Things like travel,
hotels, those kinds of things as you start to build your small business.
So now we're going to talk about the 5% or the people that actually
have wealth strategies
or as you could put I put infinite because most of the people in this category
are looking to invest their money, get it back and reinvest it again.
And as you guys know, we talk a lot about this on the real estate channel
through cash out refinances, which are tax free as an example,
to be able to generate nice cash flow and go out and harvest that money back out
and build your financial future so you too can be financially free.
So first we're going to start over here.
Most people that are financially set have at least seven income streams,
mostly passive.
So now again,
let's move over to the business accounts and you can have as many as you want.
But if you have seven streams of income from seven different kinds
of businesses, you could have seven business accounts
that would also pay seven different kinds of business expenses.
And that can be all different.
One business might require lots of travel.
One business might require lots of shipping and postage.
One business might require you they have to get childcare.
I hope you get the point here.
These businesses pay for things legally because you are producing
as opposed to just consuming.
I didn't mention this in the last slide,
but there are massive tax strategies that you guys can get.
I'm not going to go into all the details
of all these tax strategies, but oftentimes how I take my money
and how I spend my money have a lot to do with the tax strategies.
So from these seven plus multiple streams of income flows
all the way through and to, of course, my personal accounts
and over here now, this is wherever one gets confused.
This is where I believe you need a written plan and a strategy for your money.
And turning it over to a wealth manager or a financial planner is not a strategy.
Well, actually, it is, but it's a bad one.
You need to be very active and know exactly what's happening
with your money at all times.
So inside of these things, there are numerous tax advantages,
like the five 29 B and things that you might need
to put your kids through school as an example.
Cash needs to be part of your strategy.
Stock, I believe, need to be part of your strategy.
Crypto should be a small part of your strategy along with gold,
which of course is not really an investment,
but more a hedge against inflation and the dollar, though
your allocations are going to be what they are.
So the action steps for you is to form a corporation,
start to take a look at the legal business expenses that you can employ
to write off some of the business income.
So lastly, the difference between this slide, which is active income
and one passive, and this slide is the majority of it is passive income.
So in slide number two, you're going to find really hard working people.
But at some point they run out of time and they don't know how to leverage things
like into a brand or maybe a database into a list, make more money passively.
So this is a strategy that all of you can do.
I've done it.
I have lots of friends that have done it that started literally from nothing.
You can develop a whole system just like this, and then you can be
as confused as all of us as we get out of this final strategy.
So as always, guys, these videos are fun and hard to put together,
if you like it hit the like button, subscribe, hit the notification.
I'll see you in the next video.