One of my billionaire mentors taught me that there are 2 skills. 1, how to
make money. 2, how to keep yourself from losing it.
In today's video, I'm going to be sharing the 5 ways to protect your money.
You don't have to have millions of dollars to need to learn how to protect
it. The reality is that making money and keeping money are 2 skill sets that
you really want to be learning simultaneous. Okay, 5 ways to protect
money. Number 1 is that you've got to have a game plan. Now, there's a game plan
on making money there's also a game plan on protecting it. And money needs to have
a plan. You want to be a good steward of it. If you're actually taking care of
money and you're learning things like this, you're going to make it a lot easier
to attract the right money into your life. In order to protect it, you do have
to have a way to make it. Which takes us right into number 2. Once you're making
the money... Because by the way, I give people free game plans all the time on
how to make millions of dollars. You can get in the link below my book for free.
That'll really set you up. But once you have your game plan, I'm going to assume
that you do at this point. Then the next thing that you need to do is you need to
look for diversification. Haven't you ever heard the adage that you shouldn't
put all your eggs in one basket? And yet it was Warren Buffett who said, "Yeah. And
diversification is for people that don't know what they're doing." So, what's truth?
what do we need to know here? Diversification doesn't mean that you
have to be in the stock market and then in 401ks and then in real estate and
then in commercial and then in this business ownership and then life
insurance. Those definitely can all be different investments. Diversification
really is actually about making sure that you split up your investments. Even
if it's in a single asset class category. So for example, in the game of real
estate. Buying hundreds of single-family homes this year. Each one of those homes
they're separated out by being distinct homes. And there's only so many I put in
each entity. There's diversification there. And what it means is that if one of
those homes goes down, that doesn't mean that the other 200 homes go down with it.
There's separation there. That diversification creates that safety. So
that technically, they're not all in one basket. The third thing that I learned
from Ray Dalio who's also one of my billionaire mentors. Is he says you
should be looking for asymmetric risk. I feel 90% positive, I have spelled this
word the wrong way. But Google will help you. Let me tell you what asymmetric risk
is. Asymmetric risk means that you've got low downside and you've got real
hi upside. Like one of the reasons why I love my real estate strategy is that
when I put money in, there's you know, because I'm buying homes --single-family
homes below the median all within a certain box, my downside is really really
low. But my upside is really really high. And so when every time I get into a
deal, I'm not looking for investments into 401ks and IRAs and things that grow
3, 4 or 5 percent a year. That's not upside. Basically, they're hobbling
along and there's no real growth there. Ray Dalio is talking about investments
where you could double your money or you could triple your money where you could
quadruple your money. And that's what I do in real estate. Low downside, massive
upside. So, asymmetry in your risk is definitely an important thing to look
for when you're saying, "Well, where do I actually put my money? Put it in places
with massive upside but a very very low downside." Okay, number 4, incorporate.
That means set up your proper business identities. This is where you're creating
your corporate veils. Like I have a personal life and I have a business life.
My business is all inside an entity. Now, I've got s Corpse LLC's and all these
you know there's different kinds of entities. They're limited partnerships,
sole proprietorships. For real estate, since most of you are really interested
in real estate as members of this channel. What we typically use is an LLC.
This is actually a perfect created device it stands for a Limited Liability
Company. And every time I partner with someone new in real estate that wants to
put money in and have access to my really good deals and we're doing things
together, I always create a new LLC. Or if you're doing your own investing, you're
setting up an LLC. What that means is if you were to ever have a problem with
one of your properties, then the risk that's exposed is only inside your LLC
and not your personal life. I have to tell you after thousands of deals, I have
never had a lawsuit issue on any of my single-family homes. But we still do this
anyway for just in case. You definitely don't want to be that one guy or gal
that you know gets caught in a bad precarious situation because you didn't
incorporate. Now, for me to share the fifth one here... I'm saying this in all
seriousness. But I want to ask for a little bit of permission to go off the
ranch a little bit. Because right now, we're talking
very much about what's my game plan for making money? And you can make safe money
or you can make unsafe money? How do I properly diversify it? How do I make sure
that my risks have... My investments have asymmetry. How do I make sure I'm
incorporated? This fifth one to me seriously, it is the most important of
all of them. Don't cheat. Now, you might be wondering like, "Well, what do I really
mean by that?" I'm just going to tell you right now. Don't cheat.
I'm a married man. And I got 4 little kids and I loved my wife. And you know, my
wife and I we've been through a number of struggles to get ourselves where
we're at today. We've had mentors and coaching. And right now, my wife and I, we
lived most of her life 10 out of 10. And I got to tell you, it's like the
greatest wealth in my life --is just my family. And I love that. I can't tell you
how many people I've met in the journey of making wealth who while building,
their business, making their investments, making money, lost all of it that fast.
Because they cheated. They cheated on their spouse. I'm talking about
infidelity. I'm talking about screwing around, messing around, hooking up. Dude,
the cost of divorce is so massive. You should be investing every day in your
core relationship if you're in one. If you have a significant other and you
guys share your finances together, I want you to be aware that when you mess
things up on the home front, you mess everything up. I have a close
buddy of mine who is like my constant cautionary tale. I see what his life is
like trying to balance being a divorced dad. And you know, what there's different
reasons for divorce and that's not important. The point that I want to make
is that there's a whole different level of complication. Financially, the man got
decimated and that's really hard to come back from. And it's preventable. How?
Instead of not cheating, do it invest in your loved ones. Spend time with your
family. Remember that's where one of the happiness and joy. Protect your family.
And it is one of the best way to also protect money. So, make sure you put your
heart in the right place. Make sure that this doesn't become the killer to
everything else you built. And for that reason alone, it should probably be kind
of a top of the heap when it comes to priority. I don't really don't have fun
making money anyway when my relationship isn't where I wanted to be.
Friends, that's my advice today on the 5 ways to protect your money and 5
things that you can do. Now, if you're sitting there saying, "Kris, I totally
want to protect my assets. But I'd like to protect a bigger asset than what I
have. How do I do that?" You do that by clicking the link below. You get with me
in my team. Access my book for free and start learning how to make loads of
money. Now, this is this is the thing that you got to hear real quick, okay? Listen
up. When you do a deal... And for me when I do a deal, I plan on making 50 grand or a
hundred grand. So, how many deals do you need to do to make a million dollars or
a half million. You, watching this video. For where we're at, by the end of the
year, there's something you can do to increase your net worth serious 6
figures. There's things you can do to build more cash flow on your life. And it
doesn't take very many deals. Like one deal makes a really big difference. Click
the link, get with me in my team. Start making a pile of money so that
this stuff can even hold more meaning for you. Thanks so much for watching. Make
sure that you subscribe and ring that bell. And I'll let you know about
tomorrow's video.