Watch this video and there's a good chance that you're never going to look at money the
same way again.
As an investor, I have developed a specific frame of mind for how I now look at money
very different than how I used to and I'll tell you this, it means that I've got my money
growing in all sorts of new ways that it would never have been and today's information here
on Limitless Wealth TV is going to share it with you.
So recently, I watched this video by Graham Stephan that was all about you'll never look
at money the same again after watching this video and I agreed whole-heartedly with this
mindset that he has on money and I want to recap some of the ideas with you and then
I want to share with you what it can really mean for you and where you can really go with
this idea in life.
It's all about looking at money from a very different point of view.
In life, we're either living off of the principle of something or we're living off of the interest
of something.
So for example, it's this game of opportunity cost.
What am I forgoing with the choice that I'm making?
Think how hard the average American needs to work to make a thousand dollars but if
you spend that thousand dollars then the thousand dollars is gone and the question is, what
is really gone if you're actually living off of the interest of that thousand dollars rather
than just the thousand dollars itself.
Now, Graham, in his video, he really talks about this idea of, hey, in real estate, if
I'm making 10% a year on my money, minus the 3% inflation, I'm netting 7%.
So every thousand dollars equivalent to like $70 a year and so what he'll do is, he'll
say, "Alright, is this thing that I want to pay for with the thousand dollars really worth
that $70 a month every month for the rest of my life, compounding and growing and still
having the principle?"
Well let's see if you can answer the question.
Let me give you a couple of examples on this.
If you can learn how to see money through the lens of opportunity cost, you'll never
look at it the same way again.
Opportunity cost means, what am I forgoing?
What's the best next option?
What am I missing out on by the choice that I'm making?
And in life, when it comes to money, we're so busy spending the principle that we're
never living off at the interest.
You know, when I retired for the first time at the age of 26, it's because I had 25 homes
producing over $10,000 a month for me, every month no matter what, whether I worked or
whether I didn't.
Now I could sell off all that real estate, let's say, make a million dollars.
But what would I rather have?
The million dollars or $10,000 a month every month for the rest of my life plus the million
dollars and nothing eating it away, that's our conversation.
You see, we get so in this habit of earning money and saving money and then spending money
that we're always spending the principle rather than the interest.
What we need to learn how to do is start viewing the world through this other lens.
You know, Graham Stephan, in one of his videos, he actually talked about, you'll never see
money the same way again after you do this math, I'm going to do the math a little bit
different.
He and I, we both believe in real estate and most of my real estate is producing 15% 20%
a year for me and sometimes more than that, year over year over year but let's just knock
that down with inflation and what not just to have bare bones basic 10%.
That means that for every thousand dollars that I put in real estate, I'm running a hundred
dollars a year but if I spend that thousand dollars on a flat screen TV then what I'm
missing out on is a hundred dollars every year, every year, every decade for the rest
of my life and just look at how that adds up with time.
Not even, we're just talking about simple interest, we're not even talking about compounding
yet.
In a decade, I've recuperated my entire thousand dollars plus I still have my original thousand
dollars.
50 years later, the thousand dollars has turned into $6,000.
Now if I compound it with the way that it really goes down, that $5,000 or $6,000, you
could start adding extra digits and it starts growing phenomenally.
The reality is, that's what real estate does.
Unfortunately, when we're out there working hard, we're spending our harder dollars and
we're spending the principle of it.
Instead of saying, you know what?
Maybe instead of buying that flat screen TV, what I should so instead is I should buy an
investment and I should let the interest for that investment actually pay for the flat
screen TV.
What would that look like?
Well, if I save up $10,000, I view that $10,000 as a thousand dollars every year in interest
that I get paid.
So I take that $10,000 and by letting it invest in real estate with my and maturing in my
investments, at the end of the year, I'm off with a thousand left over.
Guess what I can do now.
I can buy that flat screen TV.
But if I actually erode that $10,000 and I buy a flat screen TV and a downpayment on
a car and other things that depreciate with time, they're not assets, they're not performing,
they don't grow then in time, my $10,000 is gone and all I did was trade dollars for hours.
So I worked by butt off to make this money and at the end of the day, the money is what?
It's turned into things that just, they go away and they get reduced with value like
this table, this chair, they don't go up with value, they go down with value.
So here's the interesting thing, my wife and I, if there's one thing over the years that
we've argued about, it's the conversation of, we're going to buy a car, should we pay
it off or should we get it with a loan?
And it's the opportunity cost math that we're talking about right now.
The car is $20,000, if I pay for it, I'm out $20,000.
On an asset, that out the gate is worth a lot less and each year will only become less.
With $20,000 sitting in real estate at 10% is two grand a year and that $2,000 a year,
that I can amaturize out to cover a $170 a month-ish vehicle payment and now all of a
sudden, my real estate is buying the car and by the time the car is paid off, my asset
has continued to grow, it's multiplied and it's even more.
We've got to stop taking our money and just spending it on things where the money is gone,
we have nothing to show at the end of the day and with a little bit of delayed gratification
that I write about in my Straight Path To Real Estate book.
By the way, click up here on the link and you can get my book for free and I'm going
to teach you this principle.
You can start harvesting that money and saving it and instead of you're earning 10% a year,
put it into real estate where you can make that 10% a year and then spend the earning,
spend the interest as opposed to the principle and watch where that gets you with life.
This is really a critical switch in a way that we view the world because at the end
of the day, there's a lot of things that you're going to say no to now and you're going to
delay gratification because the reality is, growing your investments bigger bigger and
bigger, holds more worth and holds more value and it really holds the secret key to financial
independence.
If you're committed to this way of thinking, then what ends up happening is you'll start
looking at the world different.
For every dollar in your wallet, think of the dime and the question is, can you buy
with the dime what you want?
For every thousand dollars, it's a hundred dollars a year that you could be earning in
real estate as opposed to flushing it down the toilet.
For every hundred thousand dollars there's $10,000 that you could be getting every single
year.
Start looking at money different and if you do, you'll start making your choices different.
And if you'll start aiming those choices towards investing then trust me when I tell you in
time, you can have anything that you want.
Right now, the house that I'm living in now that I custom built ten years ago, right up
here on the gold course outside of a beautiful canyon, the cars that I drive, the furniture
that's in my house, the trips that I take, just got back from Costa Rica, I'm getting
ready to go to Porta Vallarta, after that I'm going to Cambodia, we're going to be going
to Uganda, the clothes that I buy for my children.
At this point in my life, my investments are paying for these things so that I no longer
have to go to work for them, I have them working for me.
Look at money different and start looking at the fact that every dollar that you're
spending on something in real estate, it could be making you 10% and if you can switch enough
of your choices around in time, guess what?
Your investments will start paying for your life as opposed to working and slaving and
working for money to pay for your own.
What a refreshing perspective on money.
If you want more of this kind of information, I'm going to invite you to get live with me
for three days, click the link up here on the top corner and learn how we can spend
three days revamping our entire mindset on the way we view the world so that we can attract
more of what we want from it.