So, imagine walking into a room and handing over your financial decision making ability
to an 18-year old that has no experience with finance has no education with finance and
you go, here, young man, how about you make decisions which are going to affect me for
the next twenty years.
This sounds almost like a joke, but guys this is the story of my life because I can tell
you when I was out there getting my first car loan, my -- taking out my first student
loans, getting my first credit cards, I had no idea what I was doing.
I made some really big mistakes.
Today's video is about me addressing ten questions I was too embarrassed to ask.
When I was eighteen years old I took out my first student loan and I can tell you I took
out too much because I had extra spending money and I probably blew it on things that
today twenty two years later I'm still paying on.
I can tell you I made a mistake taken out too much.
When I was 18, I got my first credit card.
When I was 20, I missed my first credit card payment and I was paying an outrageous interest
rate for the next five years as I was working to pay down those credit cards.
When I was 22, I got my first truck and then, when I looked at the interest rate when I
was about 23 or 24, I realized, wow, I just got raked over the coals.
Guys, all of these what has to all of these in common is that I didn't know what I was
doing when I started off and it's not something that we are born with, a financial education.
So, hopefully the goal of this video and the ten questions is to get you to start looking
out there for more resources so that you can better yourself.
And, guys, go check out the support article, I'm going to link over to resources that I
think are great and it's going to be very useful.
I'm going to go into a lot more detail over there.
Question number one and this has to do with mindset.
Am I a greedy person for focusing in on wealth creation, for wanting to be rich, for wanting
to be financially free for if I think about money too much, I'm going to become a bad
person.
This is how I grew up perceiving this to be.
It was, you know, everyone should get their fair share and that, you know, obviously if
you're rich which I perceived is making more than $100,000, you're obviously stealing from
other people because everyone around me is working a factory job or they're going in
getting, you know, $8 an hour or $7 an hour and they're working hard and you obviously
are not sharing what you're earning.
Guys, this is a warped mindset that doesn't understand that wealth is created.
Let me zero in on that.
So, wealth creation as a business owner I have taken my company and we have created
over seven hundred videos, over two thousand articles, over two hundred infographics that
before did not exist.
And we have found ways that advertisers find it valuable to come in and pay me for this
that we sell products because people like convenience, they actually like that we deliver
it right to them and tell them exactly what they need to learn and the order to learn
it.
Now, before we came on the scene as Real Men Real Style, that wasn't there.
We created this value and if you understand that value can be created, you understand
that wealth is like the ocean.
You can take as much as you want because when you think about it, you're actually creating
it.
And it is a resource that is almost unlimited.
Question number two.
How do I know if I can afford something?
So, I'll tell you the wrong question to ask is can I afford the monthly payment?
So, first thing I did when I got my 2nd Lt. commission is I went out and I bought a brand
new truck.
And then, within a few months, I bought a brand new motorcycle because I'm thinking,
oh, wow, I've got this money.
I might as well spend it and I can meet the monthly payments.
Wrong question.
The question I need to ask is actually could I afford this if I were to pay cash?
And I'm both of those, I would have to have said, no.
So, I wasn't forced to save, I didn't put money aside and I was having to balance things
around.
I had to, you know, I wasn't able to fully pay off my credit cards.
Guys, focus in on can you really afford it.
If it's going to affect your lifestyle and if you can even afford to pay cash for it,
yeah, maybe you'll have to go with something used.
Well, you know what?
Right now and I think it's delayed gratification is one of the things missing out there, you
need to start saving up more and don't think just because you can make that monthly payment
that you can actually afford it.
Question number three.
How many credit cards should I have?
My answer to this is you can have as many credit cards as you need and that you can
manage responsibly.
Me?
Two credit cards, that's what I have now because I know if I start to go more than that, then
I've got issues and I don't need to have a gas credit card.
I don't need to have credit cards with all these different shops.
Now, those are tempting because you're going to get a percentage off, but look at the interest
rate.
Now, one thing I do advocate with credit cards, why I love them personally is they actually
certain businesses need them.
So, you go to rent a car, you need to put a credit card down, otherwise if you use a
debit card, they do take amount out which will still work, but I have had some companies
they won't take the debit card, they want the credit card.
Other times and I can tell you I've got certain cards which actually build up points really
well and they allow me to stay at hotels for free.
I found that hotel credit cards at this point 2016 work out pretty well.
It used to be airline credit cards worked out really well.
And I know some people really swear by their point cards, some of them you have to pay
a fee.
I'm not going to get into details of that in this video.
But, what I would say is that there are advantages to using your credit card if you use them
responsibly.
Where it all falls apart is where you start to miss payments, you over extend yourself,
you're not able to manage them responsibly and that's the key word.
Question number four.
What do you with an unexpected windfall?
So, you get a $2,000 return from your taxes and you're like, wow, what do I do with this
money?
No, you don't go blow it on a big screen television.
You look do I have an emergency fund.
I think most people never even think about this.
They do not have a separate savings account which they do not touch and has enough for
us three months living expenses.
And I think that's a minimum, the reason we've only got three months is I get my income from
a twenty different resources and honestly I think the chance of all twenty of those
disappearing is relatively low.
If you have a job, guess what?
You've got one source of income and in my opinion you should have at least six months
of living expenses.
So, if you're living expenses are $3,000 or $4,000 a month, four times six, $24,000 you
should have in your emergency fund.
Question number five.
Okay.
You've talked about emergency funds, but what about investing that money in the stock market,
what about taking that money and getting a new vehicle, so I'll be able to get to my
job more reliably or what about starting off a business?
So, first off, you need to have a robust emergency fund.
I'm just going to say that out there.
Then, okay, then let's look at where you're going to get the best return on investment.
So, if you're not going to start a company, if you really do not need a new car, guys,
I've been driving the same truck for twenty years.
Do you need that new car?
I think that's a foul that's a false belief for many people that you have to, you know,
get a new car every few years.
Oftentimes that you feel you got to keep up with the Joneses.
But, if you're in real estate and you know that this new car is something that's going
to set the tone is actually important and you're able to find a great used nice looking
vehicle that's may be three or four years old, hey, maybe that's going to be a better
return on investment than actually putting in the stock market.
If you're going to be starting your own business, that may be a better use of your money.
Guys, I'm not going to tell you what the answer is, I am going to say look at the return on
investment and use that to make your decision.
Question number six.
Where are the best places to learn about money?
Go to your local library.
Guess what?
Tons of classic money books there that you are either going to find right there in the
library or you can go to the librarian, she can order it for free.
Barnes and Nobles.
You noticed how I'm just talking about books here, guys.
So, much knowledge is wrapped up in books and what I love about books is you can sit
there with a cup of coffee and you can just make your way through it.
The second option is to take a course.
Now, there's a lot of banks which actually you can go in and talk with your local banker
and they will give you a basic class.
What's great about this is it's free.
The bad thing is they're trying to get you into certain vehicles, so you've got to be,
you know, aware of that.
I do recommend certain paid courses which I'm going to go into more detail in the support
article.
Now, what I like about paid courses is that there really is no agenda.
I mean they get your money upfront and they should be giving you objective information.
If they're trying to upsell you something kind of be careful although sometimes those
upsells are actually are great courses.
So, don't be afraid actually for paying and investing in yourself.
The third option is to find someone who has been successful, someone that you're impressed
with someone that is way ahead of you and to learn from that to find a mentor whether
it'd be actually you set up a once a week meeting or maybe it's something you look at
them from afar they're putting out information.
Now, guys, I recommend you definitely go check out StyleCon.
If you are looking to start a business, you're selling to men, if you want to get into the
men's lifestyle space, you want to attend StyleCon because guess what?
You could find guys there who will mentor you, that's one of the reasons I created this
event and I think it's well worth your time.
Question number seven.
How do I get rich?
I like this question a lot because it gets right to the point.
So, there are two sides to the coin of getting rich.
One of them is saving and the other one is earning.
So, almost everything is focused in on savings and I get it because most people have a job.
Let's say they're earning $2,000 a month and so, at this point they're trying to figure
out, okay, I can save $300 to $400 a month, where do I put this money how do I get it
to grow and to work for me and that's what most education the books out there are focused
in on.
I get it, but I really think they're missing a big point and that's increasing your earnings
and that's not always talked about.
I don't think there's enough information out there.
And so, that's, you know, starting a side job, going off and finding a better job, going
off and finding, you know, starting your own company, so you can pay yourself what you
would like once your company starts actually being successful.
Now, definitely go check out my inside I've got an inside view of basically Zero to Launch.
This is a course I highly recommend by Remit Sethi.
Oh, and by the way I am an affiliate, so if you grab this course, guess what?
I give you any of my courses for free.
But what I love about this course is it helps open your mind to, well, what if I could go
from $2,000 a month to $4,000 or $40,000 a month.
Guys, I know that may sound crazy earning $40,000 a month to some of you guys, but it
is possible.
Question number eight.
Should I ever go into debt?
My quick answer to this is, yes, some debt is okay.
So, I do think getting a house and getting a house loan is perfectly fine especially
when it's your home residence and when it's within your means.
Student loans I think are fine especially when you're going in and you're getting an
education in a field that you know you're going to be able to get a job in.
Question number nine.
What is good debt?
This is directly related to question number eight.
And I'm going to say good debt is debt that you can get a return on investment that outpaces
the interest rate that you are paying on the debt.
So, if you go to loan shark and you get, you now, a 25% or 45% interest on that loan, understand
that you had better be getting a very high return.
Now, student loans I think are relatively good for people that know the field they're
getting into and they know they're going to be able to get a well-paying job or they're
going to go down the path and they're really going to get their money's worth from it.
So, if you want to be a doctor, you want to be a lawyer, you want to be an engineer, that
make sense.
That in my opinion is good debt.
But, again, if you are taking out a high interest loan, maybe credit cards and you're going
to be using that to finance your company, you better be making sure and I know a lot
of entrepreneurs that have done that and for some people that's come back to bite them,
other people it's paid off.
I'm not going to recommend doing that even though I did it at times with my company.
But, it is one of those things that you've just got to measure, okay, am I going to get
a positive return on my investment.
Question number ten.
Antonio, I'm 18, I'm 22, I'm 35, do I need to start saving for retirement right now?
My thoughts on this is I love what I do and I don't want I don't I want to work til I'm
dead.
I literally love what I do, but I would say that for some people especially those who
are looking to start their own company, those that are going to a high growth field, those
that may be realize, you know, the stock market and retirement savings and ROIs and stuff,
that is just one path.
There were so many different vehicles that you can look at.
Real estate, I have a friend, he has made a killing in real estate.
Now, he knows what he's doing and this is his chosen path, but he also diversifies.
And that's the key guys is figuring out, you know, there are many different theories on
this and I know I'm not going to be perfect.
And I do want to hear from you guys down in the comments your thoughts on some of these.
But, for me I do take about 20-30% of my income and then we take that money and we put it
away let's just say in different funds.
I've got insurance.
But the ten questions here I talked about, you know, a little bit, you know, a different
video than what I normally cover.
I wanted to get you thinking.
Definitely go check out the support article.
In the support article, I'm going to link to books, I'm going to link to courses, I'm
going to link to other things I recommend, so that you can further investigate.
The goal of this video is to get you started, to get you thinking about this, to get you
hopefully to change maybe your mindset just a tad so that you don't make the mistakes
I made when I was younger.
And, guys, that's it.
Hopefully you enjoy this video.
I'll see you in the next one.