You know there are in fact steps for becoming a millionaire. 4 specific ones.
And today in this video, I'm going to share with you the 4 things I did to make
my first million then my next 10 million and on and on. And I'm going to break
down the science of it so that you yourself can understand exactly what you
need to do to become a millionaire yourself.
So, there are 4 steps that I'm going to be sharing with you today on how to
become a millionaire. And the first step that I want to give
you that is really key is that you have to know your target. Which means how much
do you actually need and why do you think you need that amount? You know as I
do this work with people when they come out to my events and I take them through
their million-dollar game plan, you know what I almost always find? People think
they need more money than they actually do. It's actually kind of crazy how much
money people actually think they need when it comes to this game of financial
freedom and retirement. And the reason why is because we're trained with an
accumulation mindset that says, "I need millions of dollars enough money that I
could live on it forever." Reality is you don't need millions of dollars. You need
investments that produce a residual income that can support your lifestyle.
So, the first thing you have to know is how much do you need? And I would frame
up your target like this. For me, when I got started, my target was simple. It was
10,000 a month. My wife and I basically said, "Kris, if we had 10
grand a month..." We were so poor by the way. I mean we were crazy crazy poor college
kids. You know we had just bought our second property. And our first one, we
were living in for free. And the second one had an extra $600 a month. And my
wife was doing our family accounting and dude, this was so funny to me. She pulled
me into the office kind of concerned she's that "Kris, I don't know what to do."
I'm like, "What are you doing, honey?" She says, "Well, I'm doing your budgeting and
and this is the third month in a row that we have an extra $600 left over on
the Pleasant Grove house. And I don't know where I'm supposed to put it." And I
said, "Well, honey. We've been getting money from the basement of our house. Where
have you been putting that for the last year and a half?" She says, "Oh, that was
simple. I just write it off against the mortgage so it looks like we have no
mortgage." I'm like, "That's so cute." And since its internal, it probably doesn't
matter. But that's probably not really the way it works.
My wife just she loved the fact that we just didn't have mortgage. So you thought
that was pretty good. You'd think that was be pretty cool too, I think. Now, I
have this extra money coming in our second property and I pay it to the
mortgage but there's $600 left over. And I'm like, "What are you doing with it?" She's
like, "I'm paying off debt." I'm like, "Okay. So, that's making you happy." Here's one that
all changed. Its when she asked me, "Hey, Kris. Can we get another house?" And I
thought to myself, "You're the skeptic, are you asking me for another house?" She
saw that the first house equaled live for free. The second house meant 600 left
over. She knew that a third house would mean what? She knew it would be more
money, more freedom, more getting out of debt, more putting money in savings. And
so we basically got together and dreamed and said, "How much money would we want
where I could leave my job. Doesn't matter what degree I get in college." if I
even went to college. And we decided that our target was $10,000. This is super
meaningful part of your journey. You have to know what your target is, you have to
know what your number is. Because you're if you're disconnected from that, you
won't have the focus to stick with something. So, know your number. And just
decide right now. I bet you already know what it is. Is it 4,000? Is it 6,000?
Is it 20,000? Is it 10,000? Come up with the number that is
real for you? And don't pick an arbitrary large number. Like, "That'll be great." Listen if,
there's no difference between 10 and 20 thousand, then 10,000 it is.
If there's no difference between 10 and 9 thousand then 9,000 it is.
If there's a difference between 9 and 8. then 9 it is. So in other words,
come up with the number that you know would actually help you have the
lifestyle that you want. Okay, so the second thing. This is the part that
you're going to hate but I got to tell it to you. I agree with my buddy who's video
you're gonna watch right after this because I want you to get the next level
of information. P-Y-F. It stands for what? Pay yourself first. Pay yourself first
means that you're not going to work just for your bills. It means that you're not
just going to work for you know paying your mortgage or paying your your cell
phone and the other gadgets and things that you have. Paying yourself means what
money am i earning that I get to keep that is not for my bills? Most people
have checked to check so they would think that number is really small but
I've got news for you, you need to struggle to figure out how to make that
number a big whopping 40%. 40% of your income saved and
set aside for what purpose? Well, I'm going to tell you right now, it's not
designed just to sit in savings. Are you kidding me? The problem with our savings
account is that what you're really saying is that you're investing in cash.
And every investment goes up or down and valued. Guess what cash does? It goes down
it loses value every year about 3% at the rate of inflation. You do
not invest in cash. Your goal is actually
to be broke. Now my buddy Grant Cardone, I called my buddy I've never actually met
Grant. But I I respect him, I watched his videos and I've got one that I want to
recommend at the end of this. It'll be up here in the top corner that you're going
want to watch. Because he's going to do his version of this and he's got 5 steps
to becoming a millionaire. And I want you to see the difference and the
commonalities because it's really going to augment your education and understanding.
And this is information that's life-changing if you act on it. But he's
going to tell you same as me. You're going to set 40% aside. Most people going to say, "Dude,
that's a crazy big number." Guess what when you make a lot of money, your
biggest bill will be your taxes. I need you to at least pay yourself what you're
willing to pay the government because you are a better investment into yourself. At
the same time, we go to the third step. If I'm paying myself first, what's left now?
Well now, step 3 of the 4 is I have to learn how to invest. Instead of
putting that money in a savings account, do the math for a moment and you're
going to get a little upset with me on this one, I think because it upsets me.
Are you aware right now that the average savings account in this country pays an
APR of 0.32%? So, take the rule of 72. Take 72, divide it by that interest rate. And
you know what you get? Like takes 200 years for your money to double. Which
means you can't invest in savings. The only money that should be in savings is
what you need to feel like you have peace of mind in your private financial
life. And don't make it a really stupid huge number. That money means to be
invested. So, have your sleep one night fund? But the rest of that, you need to
invest it. And what are you going to put it in? Well, if you're me, you're want to
diversify. You're going to want to put it and I diverse find all sorts of real
estate. You know that I I'm in that single-family housing market game. But I
also invest in different businesses, my own businesses, other people's business.
I've even invested in different companies. I will never however put money
in a 401k or an IRA. I will never put money just loosely in the stock market.
That's what everyone's doing and don't take advice from the financially broken.
Because I want you to be broke. I don't want you to have 200,000
sitting in a 401k IRA or savings account earning you basically .0 nothing
percent. You got to get it out there. If it
double in 5 years then what do you expect in 30 years so when you want to
retire? Dude, that money's got a double many
times over which means you got to stop looking at society stupid financial game
plan. Give me a break. Now, the fourth step is what do you invest in. You invest in
things that produce a residual. So for example, when I actually purchase a
property, it actually gives me something every month. It gives me a residual
income. So, if it's paying me, let's call it $400 a month. Guess what? That is a
return that I'm getting for money that I'm putting out. I know my target. I know
what I'm trying to get to as far as paying myself. I invest it in vehicles
that produce a residual. Then this 400 is now looping back and going towards what?
Your $10,000 goal. So, my wife and I when she had that five $600 cashflow month,
she said, "What do we need to do?" The game plan was simple? Because we know... We know
that we knew that we want to get to 10,000 a month, it meant that we would
need 20 properties. And you know what? We spent the next 3 and a half years
acquiring 20 properties and when I had 25 properties, I was at
12,000 a month and that's when I quit my job. Now, this was the coolest
part: When I quit my job, it created the financial freedom and time freedom to
just start doing whatever I wanted and that's when I started learning who I was.
That's when I started figuring out how I want to give back to the world. You know,
right now, a lot of my energy and money and time goes towards my charity efforts.
The amount of community service and helping people that are looking for that
way to get lifted up. It's like so fulfilling for me. It's something that I
love doing. I couldn't do it however if I had a job. The least I could do it nearly
as easily. So... Now, I will tell you I love the game of real estate. This document
right here, it goes over the last 4,000 deals that I've done over the last 15
years. We've just been crushing it. What I love about real estate is that I can put
my money in and it can write me a check every single month if I do it the right
way. If you hang out and subscribe to my channel, you're going to get a lot of
learning on what that looks like. What I want you to do right now though is I
want you to click the video popping up right over here.
It's Grant Cardone. He's got an amazing information in this video on his
perspective on his 5 rules. I want you to find the one that's
different than mine because I think that it's unique I think it's different. I
think it'll give you actually some better understanding of what it is that
I believe what he believes. And I think that you have a lot to gain from it. So,
click the link. Watch that. Figure out the difference between our 2 bits of
advice. And either way, I think you're going to find some strong commonality so
that you can move forward and finance to crush it.