In today's video on simple steps to financial freedom, I'm going to be
sharing with you 2 of the most basic and most of the important maneuvers that
will help you first get to $1,000 and let the residual income and then $5,000
a month of residual income and then walk from that job and ultimately wind up
financially free.
So, where are you currently at in your journey to financial freedom? If you're
not very far down the road and you're still living with a high degree of
financial stress, the first of the 2 things that you need to do is you need
to create an emergency fund. A whole lot of fun and it doesn't even look all that
sexy. But it's going to do a lot more for you than you actually think. Right now,
the concept of an emergency fund is, "Hey, if I lose my job then how long can I go
before everything collapses financially and I stopped paying my bills and I
start losing stuff. You know, in the beginning, you want to figure out, "Hey,
how do I find a way to get enough money set aside where I've got a 3 month
emergency fund?" That's a good first goal. And now, if you have three months, you're
going to want to turn that into 6 months. And ultimately, you're going to want to turn
that into an entire year. But remember, we can't save ourselves to financial
freedom. We need money for investing which is going to bring me to number two.
Couple more things on the emergency fund. You know, Dave Ramsey and I need to screw
on loads of stuff. Because for Dave, it's all about get out of debt, get out of debt,
get out of debt. And then you can go somewhere. And for me, my second rule
actually massively contradicts Dave. But you know Dave is a good guy. And ultimately,
he is trying to help people figure out how to live financially smart lives and
reality is that you don't have a game plan, Dave's plan is the best plan.
Because it basically says, "I don't know what I'm doing. Good. Just get out of debt."
But today, we're talking about financial freedom. We're talking about something
bigger than just being debt-free. Dave this year the story about emergency
funds. I think this woman put $1,000 behind glass in her closet and I
actually remember hearing Dave said this whereas like, "Break if in case of an
emergency." And then there would actually be money. So, she was making it hard to
actually get to her money so she wouldn't actually accidentally spend it.
But the biggest reason why I'm putting this up to today's video before I go to
the more exciting. One that is about the making money and wealth creation is that
this a huge impact on your mindset. We have
got to help you calm down a little bit. The more you stress about money, the more
you push money away. And the less money can actually be in your world doing good
for you. So, in an effort to help cultivate some calm in your life and to
start feeling like, "Hey, we're going to be okay." I want you to attach that to this
idea. I'm starting to build my rainy day fund and this is money again that I
don't touch. As long as you do that, you're going to be good. By the way. Yes, I'm
going to give you a little bonus on my favorite place to store money which is
do this probably one of the coolest savings hacks on the planet. And I'll
give it to you at the end of this video snores. Okay, on to number 2. This one
day, is not going to be a huge fan of. Most people I meet, they've never
heard this rule. My rule is leverage good debt to eliminate bad debt. And more than
just bad debt, we're going to use it plus build wealth. Okay. So, if you were to say,
"Okay, Kris, you are in a race to create wealth. Dave Ramsey, you're in a race to
create wealth." Dave would say, "Well ,we're going to get out
of debt and then we're going to build wealth. And I'm going to say start building
wealth now and let your wealth eliminate your debt." Because reality is is that
when you work a job, if you're a great saver, like check out the average person
like the average amount of student loan debt that someone has or the average
amount of credit card debt. Or I want to get my half of my car paid off. Or I want
to pay off my house." That is a multi-decade long journey just to get
debt-free. And when you're debt-free, you can't retire. You still need income. Which
is why for me what I'm really looking at doing is building a residual income. And
I want to help you know how to get to that first thousand dollars a residual
and then five thousand dollars a residual and then walk from that job. And
here's what it looks like. You've got to take what money you got
and instead of throwing in a debt, you want some to go on emergency fund and
you want to throw the rest. If you got bad debt, then instead of using your
money to pay it off, use your money and put it towards a good debt. So what that
looks like is for example, you know me I'm really keen on real estate
investment. I also do alternative investments. I've got my own financial
planning company for heaven's sakes. But real estate is my tried and proven way
of consistently producing twenty to thirty percent annual returns. By the way,
if you don't know how to do that, you can get this book for free ,it's in the link
below. Straight path to real estate wealth and
has created so many millionaires. It documents a very simple four-step system
of what you do in your backyard to create loads of wealth or you can
estimate like my team Stephan and actually they do it for you. But here's
the very simple idea here. I'm going to buy a house and it's going to appreciate in
value. It's going to give me a cash flow. It's going to give me tax benefits. And if
you do the right way following my system, there's no disincentive. So, you only win.
You only gain while providing a really valuable service to someone in the
community. This is a great example of a good debt. You understand that good debt
and bad debt are two opposites, right? Good debt is a house that makes you
money. Bad debt is a credit card that costs you money. So, what we need you have
to do is differentiate in your life between the two of them. And you want to
leverage good debt to outweigh that debt. For example if this house ends up making
me let's say $70,000. Just that one house. Now, I'm going to put a
really interesting choice in front of you. You could use that 70 grand and buy
2 more houses or you could eliminate all your student loan and credit card
debt. What would you do? Would you pay off your debt or would you double down and
buy 2 more houses? Let's assume that those two houses produced 150 thousand
dollars gains. Well now, you can eliminate all your debt
and still have money left over to invest. And then you like, "But what I do that" Or
what I then... You know, turn into 300,000 and turn it into
600,000 and turn into 1.2 million. "At what point Kris do you
retire your debt?" You're going to want to listen to this. You retire your debt when
you have enough residual income to live on after you've eliminated it. If you
have to because remember residual income is way more important than just being
out of debt. If you do that my friend, you are going to be crushing it out there.
That's why these 2 rules means so much to me.
By the way, in not in the direct link below. But if you look like below below
below and all my links. You're going to find something in there about leveraging
financial planning. Leveraging life insurance as like a bank. I stockpile my
money every month in a place that hurts me 5%, tax free and is untouchable.
My normal bank can't do that. But I do that with life insurance so if you
scroll below the video you're actually going to see a link for that check that out.
For those of you that are saying, "Okay, Kris. I'll get my emergency fund going.
I'll start building this up. But I need to figure out how to buy real estate.
I don't got money." Then you for sure need more than just this book. You need to own
a copy of this. You need to read it. It is a very quick read but thoroughly and
very well written. More important is this book also comes with a no BS
consultation for my team to shoot straight and say, "Alright. How would I
buy real estate if I were in your shoes?" And if you've got a hundred grand in an
IRA, they'll show you how to put that in real estate, tax free and grow and all
that cool stuff." If you're saying, "I'm actually deeply in debt and I'm check
to check." They'll put themselves in your shoes and
tell you exactly how to get ahead and they got a plan for that because that's
exactly how I got to where I am because I started deeply in debt. So my friends,
for simple steps today on building your foundation becoming financially free. Get
that emergency fund going and then leverage yourself into positive assets
that eliminate your bad assets. You can do that through real estate investing
which is in the link below to get that book. And I've also told you about the
other link where you can have my team to set you up your own bank with incredible
benefits. Your local bank will never ever offer to you.
So, that you can get ahead on a next vases. Thanks so much. Make sure that you
are a subscriber and I'll see on tomorrow's video.