moving to finances Larry have you heard of this thing called the fire movement
no so basically a lot of young people are doing this it is financial
independence retire early so you hear that you hear some young person saying I
live the fire method where I'm trying to retire by 30 basically what they're
doing is we always say that the foundation of your finances be you live
below your means save your money take care of your credit have emergency funds
and invest the rest so that it makes you money in the passive form and so one
thing that has been popular with videos we've been doing about finances is the
two most popular videos we've done have been the ones we do about stops and the
ones we've done about real estate and so somebody somebody wanted me to talk
about how does someone be able to reach the fire movement where real estate and
I thought I'd show them a little example so basically what you're trying to do is
get to level one and basically level one of the fire movement is your passive
income pays for all your expenses meaning that you've got real estate cash
flow coming in dividends from stocks maybe you've got some kind of website or
a blog anything that you're not having to actively manage day to day that can
take care of your bills all of them that's level 1 level 2 is when you've
got enough money where you can take care of your bills and then you can go buy
luxury items but I'm just talking to people that just want to get you level 1
where your passive income takes care of your current daily expenses and so forth
kind of what I did was in real estate you know you go and let's say you go out
here and you get a quad a four-plex home it's got four units they're making you
$700 a unit which brings you to $2,800 a month you just simply add up your
expenses which you got your standard mortgage taxes insurance lawn care
fixing stuff and also for me I got a property manager because I don't
to deal with and down at the bottom at the bottom when you add up all your
expenses and this is kind of kind of similar to my situation it's $1,800 a
month you're clearing $1,000 a month in passive income that you're not doing
anything for one property one property the the hardest part to getting into the
fire movement is making sure that you live way below your means so not buying
air jordans you go buy some air a six out of the consignment shop you know not
letting your credit cards not letting your credit cards go on month-to-month
not eating out if you're going to eat out instead of doing that weekly reduce
it to once a month these people and you have to always be tunnel vision on the
is justifying the means I did this in my early 30s when I first met my wife I was
transitioning into doing this and it has allowed us to kind of do the things that
we're doing now looking down the road five to ten years and you can certainly
do this same thing in real estate ladies and gentlemen two three four or five
properties add up and once you just subtract what your current living
expenses are all of them utilities health insurance what you need to buy a
groceries gas whatever those bills are set that number aside and then go to
work on what you can do to either lower those expenses let's start making some
kind of passive income above that that can get you to the point where you can
retire and work on projects you want to work on to make yourself money like me
and Larry are doing in a nutshell that's interesting I'm curious to see you know
what that's going to look like for a lot of people they're able to succeed with
this movement you know I wonder what that's going to look like for the
workforce because it seems to me that a lot of the people that would be able to
afford to do this are already going to be on the you know the upper tier of
Education and and earnings and if a lot of those
people are saying well I'm leaving like if they graduate from college at 22
before they go to grad school or you know or wherever and they leave you know
grad school at say 25 and they're they're retiring by the time they're in
their 30s what does that mean for our workforce you know if you're more people
the workforce that may have another you know 30 years in them and these are
people that are gonna be skilled people that are going to be you know that are
intelligent and skilled workers and now all of a sudden they're just gone
whether that means that the workforce is gonna have to do one of several things
number one you may have to set up your own education programs within your
workforce so that people aren't forced to have to go to college to get into
your desire field we've got plants moving here doing this
same as that thing or they're setting up like six-month courses at the Community
College you could do that yeah but that that's only but that's for some things
you can do that for some things but what do you do when you have you know if
you're an accountant or if you're you know you're a marketing exec or
something and there and you have people that are basically like yeah I made
enough money from you guys to buy my properties and invest in my stocks and
do whatever and I'm gonna retire at 35 you have enough people doing that I mean
you're gonna have some real shortages in certain areas not to mention it's gonna
drive the price of labour way up because you have people that are young that you
thought oh I can pay this person a good mid tier salary because they're 35 and I
expect they'll be around here for another 25 to 30 years and this person
is like yeah dueces I'm out all of a sudden now you're gonna be like whoa
wait a minute we need you to stick around for a while longer nope
the only way you're gonna get them to stay if they if money is even a matter
for them it's just throw more money at them and
we're better benefits which does that mean the cost of their labor is gonna go
way up you know that's why I said businesses have a few strategies they
can adopt if you're not gonna do the self educating piece and tie people up
in the contract you can do what Larry's saying you can pay out the nose to try
to keep good talent but at the end of the day man
anyone who's a go-getter and they've got their mind set that they're gonna do
better on some other level unless you're paying them NBA salary and even then
you're not gonna keep it forever you might write for three or four years but
you're not gonna keep someone like that forever and America Believe It or Not
has a great work force of people who just want to be worker bees man I mean
that's not for me but there are a whole lot of people that don't want to deal
with being their own boss managing their own time and that type of thing
believe it or not right yeah so that is our financial money tip of the day if
you really want to grab life by the horns take control of your life live way
before your means give a try of getting into the fire movement finding a passive
income source you can create so that you can retire when you want to and do what
you want to to make more money if that's what you so choose to do