Money is a tool nothing more nothing less. If you’re a jerk money makes you more of a jerk. If You are mother Teresa money makes you more mother Teresa. It is just a tool, but this is what I know how many of you know someone that doesn’t have enough money, but I don’t want to be that person.I also don’t feel bad for them or less them all I think to myself is.
That person who does not have money, was never taught what we know today. They never understood that your money is a tool and just like an app on a phone if you don’t use it and play the game right and follow the steps. You don’t get the results. It’s not how much money you earn, It is what you do with the money that matters.
The Research – 5, 15 and 80
There’s been a lot of research on this and you’ve probably seen something like this before Especially if you’ve ever met with a financial planner, or you know you’ve watched CNN financial.They all say the same thing 5, 15 and 80.Five percent 15 percent and 80 percent. The studies show, five percent of the planet are basically generational wealth. They have created generational wealth. It’s not the top one percent, guys somebody who is worth five million dollars Who has paid off their home and when they pass on the Transfer all that wealth over. That’s generational wealth . Some of them are worth millions some of them ten some of them are hundreds some of them are now billions but that’s the 5%.
The 15%, They are the middle class They got a house They got a little savings. They go on a few vacations, and they’re comfortable and there’s nothing wrong with that 15%.
The numbers 80 percent, when they are older either:
- They have to work to make money or
- They are dependent upon the government or their family to subsidize their lifestyle.
Research suggest, that based upon their money behaviors, and their money psychology. They’re clearly going to end up in the 80% . Not to point out any body here.
Research also suggested a strategy for your money. You can call it a business strategy. It is not going to tell you what to invest in that’s not research role. It is going to show you ideas of what the very best people do.
Take Care Your Tax Advantages if You Can.
The first thing- it shows you, what 80% of real estate professionals do. 80% of real estate professionals They get a commission check and that check goes into their personal account. They go home and maybe they say here honey, or here on by myself, and I put it in my account .
But this personal account is not an LLC (limited liability company), an Self Corp a limited light. You know limited partnership. It’s not a corporation. It’s a personal thing now. You and I would like to thank you for paying lots in taxes. Thank you very much. We really appreciate you overpaying what you should be paying keep up the good work .
So what’s rule number one? Should I have a corporation yes, or yes? Call your Accountant and say I think I need to get incorporated, which you recommend based on where you live, What country. what state etc? But rule number one is no one leaves this in 30 days if you are not incorporated . And you don’t own your business and now your checks come to blankety-blank LLC not you personally. now you get all the tax advantages yes or no guys But I got to tell you, this is what the 80% does and this is clearly bad.
Budget Your Income Properly
Let me show you What the 15% do. Research want you to draw this out, Want you to imagine a world, Company get the check it goes directly into its business account Right . Get it wired in from online. don’t get physical checks anymore the money Just gets transferred over.
Company get the physical check, But it goes into a business account, which means now as you can see it has four different Accounts at its bank. Four different accounts at its bank. Three accounts Tax account, business account and my home account. My personal account.
You know every single one of you to just do that and then Follow the rule, write this in your notes above the tax account. Research want you to note down. Let’s do an imaginary check and I want you to show you how much money goes where so at the top, let’s say, that’s a $10,000 check, just for easy numbers $10,000 check so all of a sudden $10,000 hits business account and the first thing that happens is instantaneously 3,300 of the 10,000 goes directly into my tax account. 3300 automatically into my tax account because some of you think when you get a check for 10K that you actually have 10K.You get a check for 10 grand, and you’re lucky if you get 4,500
That’s the real deal now you’re an entrepreneur you own your own business you’re gonna start taking better write-offs. You’re gonna pay more attention to your accountant You’re probably gonna have your uncle Larry who’s done your taxes forever stop and actually hire a CPA who’s gonna pay attention? But 3,300 bucks automatically goes there then 3,300 or less goes into your business account and This is where you run your business a check comes in I’ve got marketing a check comes in I’ve got expenses a check comes in I’ve got my MLS dues Everything that I need to run my business every check 3,300, and then what goes over here 3,400 bucks to my home. Now it sounds like you might need a home budget.
The Cardinal Sin – Spend All What You Earn
What do you folks suppose? Since ordinarily what do we do we get a check and we simply begin spending the cash? Coincidentally in the event that you check this the absolute initial one out. This is the cardinal sin. This is the thing destitute individuals do they get a check and They simply begin spending. Who realizes somebody like that say, I matter of truth the greater the check the more they begin spending and they never contemplate Debt decrease since they’ll do that later . Believing is “On the grounds that I’ve buckled down and this was such a difficult exchange And that is the reason I will indulge and over spend on myself, and we know the monetary rollercoaster. You’re really putting yourself through these finishes.
Actions – Those Who Care Money
What individuals do that deal with their cash. They know Uncle Sam or Revenue, Canada or Mexico? They’re taking their cash. Regardless of anything so when
“I commit that Check comes in I don’t share with myself I get it all it naturally goes there I leave a piece here, and the equilibrium goes here seems OK so tell your mate. The quantity of clients that have done this and afterward I see them a year after the fact. Furthermore, they go “I have $15,000 and my reserve funds sort of never had that however more critically I paid every one of my duties Like I’m on time and I have cash inside my business record and it’s the year’s end and my bookkeeper said I want to take a Dividend so I’m getting a major load of cash toward the year’s end”.
You know family trips vacations memories, holidays, you know maybe a new outfit. The challenge is if you keep that psychology without requiring or putting in the discipline. You know what you end up with a bunch of nice things and a shit ton of debt.
Do you know someone personally that has too much debt? There’s smart Debt. There’s bad, debt, and I’m not gonna go too in depth with you on this But you know the difference you know credit card, debt at nineteen percent is dumb. Debt buying a house and getting a mortgage with three-and-a-half percent is really good debt .So we all know the difference, and I just want you to be mindful I want you to take care of your money, but now did you guys get a photo of this? Did you capture it are you sure? Are you promising to do this? Okay, do you want to know what the wealthy agents do? This is what the wealthy agents. Do it’s a little more complex It’s a little more complex
This is what the wealthy do. What do they do with their money? They just get the check and throw it inside account and they spend it like crazy and they would never have any cash, and they must always be in trouble.
Recapping By A Game Play – A Learning Game
So, play a game with me you get a $10,000 check The $10,000 check goes to what account? 33% of it goes in taxes naturally . The rest Money, Some individuals call this other record, your venture account. I like to consider it my monetary center It’s where the cash comes in and afterward it gets separated once more
You realize even would try and endeavor to be, yet I’m giving you simply an illustration of what that additional could go towards So perhaps you really want since you complete two arrangements every month, Where does the rest go?
- You have a retirement account?
- You put cash in the securities exchange or in bonds or anything that you have confidence in
- You have a record where you just put cash? to purchase land
- Why not on each check take five percent of each and every register put with a record called cash for land And you simply watch that develop like insane over the long haul.
- For Kids – Another B account which is a school reserve
- The tomfoolery account
Everything Pay toward the End
In two years, got 185 thousand bucks in real money sitting inside that account You ought to go purchase a duplex. You ought to go purchase a four-plex. You currently have the means to go do these arrangements retirement account, land, cash account. You can utilize this since you got it done. You know with kids another B account which is a school store Cash account since we did land cash. What do we call this the tomfoolery account? The tomfoolery account you realize the I will go spend this cash on dumb stuff and discard it later and not mind or I will take this cash, and I will involve it for excursions and occasions.