- I always tell people,
if you're below average, just try to get to average.
People try to go from below average income to wealthy.
No,just try to step, step-by-step.
That's also P, P is patient, practical, patient.
Welcome to today's training.
(ball bouncing)
Today's a wealth day.
So we're going to be training on wealth.
Three things today; Number one, wealth.
Number two, your practical skills.
So the P part of your personality.
And then the third thing we're going to be doing
is managing your money. Wealth.
First thing that I'd like you to remember
is that almost everything you ever heard about money
isn't true.
So if you want to make money,
you gotta reprogram your brain a little bit.
The first way that I'd reprogram my brain is,
remember when people, you might've heard,
depending on the religion you grew up in,
that money is the root of all evil.
But if you really think hard about money and you look at
statistics around the world, wherever there's poverty,
that's where the, there's the most crime,
the most injustice.
That's been proven over and over again.
So on this first concept of wealth,
if you can really get in your brain
that if you can use wealth correctly,
you'll do a lot of good in the world.
This will free you up from guilt trip, self-destruction.
It'll keep you from the path that most people go on,
which is to just make enough money
that they can provide for themselves,
but they can't help other people.
So that's the number one principle.
This is just a general principle.
If you want to train your brain,
you want to train your brain around these conscious
kind of cues that hold us back, subconscious cues.
And that's what by far the biggest one.
Most people have been guilt-tripped about money.
Alright, the second thing, if you want to create wealth,
we've been talking,
this whole program is built around your personality type
and there's four main parts; P, A, S, E,
Practical, Action, Social, Emotional.
You need to develop all four of them in balance.
You don't want to be strong in one and weak in the other.
P is what we're going to talk about today.
P stands for practical.
And if you're watching this,
you'll know that you're a P person
if routine comes easy for you,
math comes easy for you,
doing your taxes and accounting comes easy for you
in the sense that you don't mind sitting in one place
and thinking things through.
your're a P if you don't mind routine,
you don't mind setting a date
three weeks ahead of time for a dinner, you know,
a dessert dinner reservation.
If you don't have much P,
everything I just mentioned you'll struggle with.
And one of the goals is to strengthen your weaknesses,
make your strengths even stronger.
And then of course learn all these practical things.
One of the simplest ways to learn practical skills
and develop that part of your personality
is really get good with numbers.
And this, by the way,
of all the wealthy people I've ever met,
and I just got to spend this week some time with Elon Musk,
every one of 'em, when you talk to 'em,
you don't talk for very long before some number comes up.
So if you grew up thinking math is hard
or numbers aren't important, they are important.
They're the language of money.
So I'm gonna do a little drill, just a practical thing,
and you can do something like this.
You don't have to do it with basketball.
I like to just get in the habit every day
of saying some numbers to myself.
So I'm gonna to shoot 10 free throws
and I'm just going to go one for one,
(ball bounces off concrete)
one, one for two, two for two,
missed. Two for three,
three for four.
Now What am I doing?
I'm holding different numbers in my head
and that's very important.
Even though it's not super calculus or anything,
it's developing that part of your brain.
That get good at numbers.
And don't ever let somebody trick you.
You have to be decent with numbers
to create wealth for yourself.
Four for five.
Five for six.
Ooh,lucky it dropped in.
six for seven.
Seven for eight.
Oh, lucky me. Eight for nine.
The most important thing is not
whether you're making them up or not.
Are you holding the numbers in your head?
A little helicopter coming.
Oh, didn't focus at the end.
eight for 10,
then I want to do a little math in my own head.
Eight for 10 is 80% .
If you struggle with percentages,
go online, do a few little percentages.
The most important thing you need to know
when it comes to making money is percentages and ratios.
That's generally where you'll
get the biggest bang for the buck.
You don't need to know calculus.
So the second thing is, today at some point,
whatever you're doing,
try to hold a few numbers in your head.
It can be playing basketball,
it can be if you have three errands to run,
be like one for two, I mean,
one for three,
two for three,
three for three.
Just get in the habit.
Make lists and make sure you're number them.
A lot of times I meet people that aren't good with
P side of their personality, you know, they have it in them,
but they haven't developed it
and they'll make a list and not number it.
They'll just be like, you know, go to the grocery store,
get whatever,
clean the house and make dinner.
And I'm like, no, add numbers to that.
The third thing, let's talk about managing money.
Some practical skills.
The first thing with managing money
is realizing the most important,
facet of your financial life that you can understand is
cashflow, money in and out.
It's not always about profit because,
when you get more advanced with the counting,
you can actually have a profit
but have no positive cashflow.
And cashflow, the easiest way to understand it
without getting too complicated is bank account is either
going up or down.
And the first thing you want to do in life
before you try to make a million dollars or six figures
is you have to stop,
you have to change the direction of your bank account.
And so that's a, point, a, understand your monthly cashflow.
So if I asked you right now,
what was your bank accounts cash flow last month?
Was it positive or negative?
Simple. If it went up, it's positive.
If it went down, it's negative.
And you want it to either be at the worst case, flat line.
You don't want it to be negative.
It doesn't take long of letting yourself go negative
that you can't recover from it. It's pretty dangerous.
The next thing that's, that's kind of sub point, a .
sub point a, notice how I'm doing this lesson today.
It has like numbers and sub points and all that.
That's me showing you my P side of my personality,
which is also I speak a little slower,
annunciate a little better.
When you're doing P you're very like down to earth
and easy to follow.
You're not aggressive, you're not loud,
you're not sensitive. It's just kinda point by point.
So the first one, A, point A, is,
understand your cash flow direction
up, down or flat line.
Flat line means it just stayed the same.
Try to not have it flat line for too long.
Point B,
you have to have what I call an opportunity fund.
Open a savings account or another checking account
and literally go into your online banking
and change the name to opportunity account
and every month put some money in there
because if you don't,
I've made this mistake, missed out on buying awesome things,
Maxim magazine, basketball teams, all this stuff.
When you don't have any cash left aside.
And some people call it a savings account.
I don't like savings account just because
nobody likes to save, but everybody likes opportunities.
So you have to understand your psychology
by calling it opportunity fund.
For me, I'm more likely to put money in
because I don't want to miss out on opportunities.
Every month, I would say, ideally, try to take 1%
at the very minimum of what you make.
So that doesn't sound like very much,
but at the beginning you're just trying to get in a habit.
So if you make $3,000 a month, 1% of that is 30 bucks.
Everybody can do that.
And the reason I say 1% is, in the United States,
that's the average savings rate, 1% .
so I always tell people if you're below average,
just try to get to average.
people try to go from below average income to wealthy.
No,just try to step, step by step.
That's also P. P is patient, practical patient.
So 1% every time you get a paycheck, however much it is,
1500 bucks, put $15. You make 10,000 bucks,
put a hundred dollars.
Now, I'm not saying you can't put more than that,
but that's the absolute minimum.
Just 1% everybody can do that.
Even if you're think you're broke,
you can always find a way to save 1%.
The third thing, c, and this is under point three,
to manage your money. So the first practical tip.
know your direction of the cashflow.
Negative, positive flat line.
b is open an opportunity account and put 1% minimum
you can put more.
And then c, and this is a very important one,
you have to start taking money that you make,
This is not the opportunity fund.
This is a completely separate conversation.
Whatever's making you money right now,
you need to take, and we'll just go easy here,
but I'm going to give a slightly larger percent,
take 3% of that of your monthly paycheck or monthly income
and reinvest it back into what's working.
And here's what I mean. Let's say you work at Starbucks.
So that's what's paying the bills right now.
And you make three grand a month.
3% of three grand is how much? anybody know?
the 3%. 90 bucks, right? 90 bucks.
take 90 bucks and buy something.
It could be a book, it could be a training program,
it could be a sales course on something that will
help you get ahead at Starbucks.
So I would start out with "How to be Good With People" book,
because if you're a barista or something like that,
so 3%, now if you're making 10 grand,
3% of 10 grand is $300.
if you're an entrepreneur
and you're making your money through internet marketing,
make sure at least you spend $300 doubling down
on your own brain.
So this is a 3% education fund for whatever's working.
So if you're an online marketer and you're selling
cat t-shirts, then make sure you spend it
and you're making $10,000 positive cash flow.
Spend 300 bucks learning more how to market t-shirts.
That's a very simple thing.
But I can't tell you how few people double down
and invest money in what's working.
And if you don't do that,
it's a fool's game
because if it's working now and you invest more into it,
generally will continue to work.
So that's the three sub points of number three.
So I gave you a lot of points today.
Okay?
Till tomorrow. Talk to you soon.
(ball bouncing on concrete)
(cool music)