Kris Krohn here with Limitless Wealth TV and today, we're talking about the
dumbest things people do with money. Today may be a bit of a shocker but I
got to tell you right now, I feel so passionate on this and here it comes
right now.
Today, I'm going to talk about three of the dumbest things people do with money and
it might not be what you think, a lot of you might be thinking, oh, buying a nicer
car than you should or blowing your money on a plasma screen TV or a bigger
house and you can afford or building up a huge wardrobe or you
ladies out there that have to own like 300 pairs of shoes, I don't actually want
to talk about the mistakes and errors of the consumer, what I want to talk about
today is the fact that every one of us human beings, we have a financial destiny
to get somewhere in life that can create more freedom for us and instead of
investing in the things that will get us there, we're doing these three dumb
stupid mistakes. The first thing that we do that's dumb is we pay off our house.
The second thing we do is we try to stay out of debt and the third thing that we
try to do is save money. Yeah, I actually just said that the three dumbest things
that we do with money are paying off our house, staying out of debt and saving
money. How on earth can I possibly call those things dumb? Well, friends, the
reality is, I could nitpick the fact that we're doing dumb things with our money
when it comes to how we're spending on our consumables or eating out this many
times or spending our money that way but the reality is, is that when it comes to
the long-term picture of where we're trying to get to,
we think that what will save us is staying out of debt, paying off of our
house and saving money in the bank. Let's take a look at a 40-year working human
being and where they get. Let's say 40 years from now your house is paid off,
let's say that 40 years from now you've put a little bit of money in savings
because you also worked hard to pay off your house and let's say that you're
entirely out of debt, can you retire? No. It's like the closer we get to
retirement, this game plan of being debt-free and having a paid off
house, it becomes scarier and scarier and
scarier when we actually realize what that is doing for us? It's like, right, my
house is paid off but I can't eat bricks, where am I going to get like money for food?
And it's like, well, I got no debt but I just realized, what an accomplishment and
yet I can't retire on no debt. The thing that we realize when we get to
retirement is that we need more than no debt to be able to have a level of
financial security. No debt is a level of financial security but it is a
pathetically low one. The reality is there's something
want more than being debt-free when it comes time to freedom in retirement.
We need money and the way you get that money is by following three very
different rules. Rule number one, instead of paying off your house, you need to pay
it off when you have a residual income. So instead of throwing your money at a
bank account of bricks losing at the rate of inflation, negative three or four
percent, you need your money to be an investments that make you money and grow.
Number two, instead of staying out of debt, you need to be racing in to as much
positive good business debt as possible. What is a good debt versus a bad debt?
Well, first of all, you need to understand that that one word debt, there's a good
one and a bad one. I get it, the bad one is the consumer one, right? I buy things
that go down in value and don't make me money. A good debt however does the
opposite, I put my money into it and it makes me more money than the cost of the
debt. Real estate is a really good classic example, I go into debt to buy an
investment property, I rent it out and then I have a $500 a month cash flow, I
walk into $50,000 of equity and with a game plan, I can roll that house into
several houses that actually gets me somewhere. Another format of a good debt
is investing in your business, your business ideas, the things that you
believe in. Sure, it's high risk, you could lose money, it may not work out but you
at least have a shot of doing something better than following the three rules
that are guaranteed to not get you where you want in life. Invest in real estate,
invest in business and that's often are going to require debt to accelerate your
means and ability to afford resources to make it happen. So get into good debt
that makes you money. If a little debt that is good makes you some money then
what does a lot of good that do? It makes you a lot of money and look at the
wealthiest people in the world today and guess what? All of them have experienced
going into debt to stimulate their own personal economy to create jobs for
people, to grow a business idea and actually go somewhere and the third one
of saving money, listen, it's not that saving money is bad, it's that you need
to invest your money. You need your money working for you. If you don't get your
money working for you, you'll always be on this side of the equation where
you're trading dollars and hours and trading dollars and hours and whether
you're an attorney making $600 an hour, whether you're the
janitor making $6 an hour, we're still in the exact same boat. If you
don't work, you don't eat. So instead of these rules,
we got to pay off my house, I got to stay out of debt, I got to save money. Today
I'm suggesting three very different rules, pay off your house later after you
have a residual income, get into as much positive debt as possible and invest
your money so that it can work for you. It's time for you to get your money
working for you and if you want to know how to do that, whether you got a lot of
money or very little money, click the link up here and learn some of the
options and how me and my team can step in and start getting you financially
free.