You can spend money, enjoy life as long as…….. You can spend money. Enjoy life as long as your first goal: Every year you increase your earning ability, your high-income skill, by at least 10%. By at least 10%. Your second goal: Every year, you will save more than you saved last year. Every year, set a goal, you will save more than you saved last year. Your third goal: Every year you will increase the amount you save in terms of a percentage of your income. That’s the most important piece. Your third goal: Every year you will increase the amount that you save in terms of a percentage of your income. I’m not asking you to be cheap and to be frugal. No, I love my credit card. It’s not about that. It’s about increasing your earning ability.
You follow the ratio. As long as you put aside a certain percentage and you’re investing, spend what you want. Enjoy life. How many of you like nice things? Yeah, I like nice things. I like nice things. I don’t look good in cheap suits. – [Woman] Nobody does. – Yeah, I like nice things. So it’s okay to get nice things. The problem is people make this and they spend that much. When I’m making that much and I’m spending this much I can buy what the fuck I want. It doesn’t matter. As long as I keep within that it’s okay. Yes…Save more, much more. That’s why the 10% stuff doesn’t work. It is not enough. If you’re making 30k, 40k you save 10% it doesn’t mean shit in 20 years. It does not mean anything. You have to keep increasing your income and every year you want to save more. Much, much more. So if you’re making less than 50,000 dollars a year, save? What percent?
What percent?- 10%. If you’re making 50,000 dollars or more but less than 200k save 15%. If 200k or more but less than half a million, save 25%. If you’re doing half a million or more but less than two million, save 35%. If you’re doing two million or more, but less than five million save 40% If you’re making five million or more you should be saving at least 50%. The rest you can spend whatever you want. Blow it however you want. Reward yourself. That’s okay, but you need to increase your earning ability. And that’s a combination of your scalable business as well as your high-income skills. That’s the slide. That’s the slide. This is how we have many people in the audience. Jeremy has experienced this. He’s made a lot of money. A whole lot of money. How much money I just save you, man? – Shit. I wish I knew this back then. – Yeah, I know. Okay, go ahead. Yeah, whatever story. You didn’t follow this. What happened? – I did not follow this. I didn’t follow the wealth triangle thing either. I totally didn’t. I actually skipped all three steps, somehow made 50 million bucks, and then screwed everything. – Yup. – So yeah, the worst day of my life. I lost 48 million dollars. It was a bad day. So yeah, this system makes so much more sense now. All the pieces that he’s kind of putting together in the puzzle here make absolute sense. That high-income skill.
I’ve rebooted, I’ve come back. I’ve done the high-income skill. I’m actually sitting around the 200ish but I’m not saving 25% so shit. I gotta go do that. So all the stuff he’s talking about here this all makes so much more sense. It’s like that compounding effect and you’ve got back up plans for everything which is what’s really key, right? So the stuff I’m getting from this, this talk that really high-income skill is super, super, super important.
And that growth of that high-income skill, I can see now that that’s what you’re falling back on, but since it’s growing year over year, you’re not falling back on something less. You’re not falling back on something that’s negative. – That’s right. – But if you want I’ll share the story over a beer whenever. I’ll let you know how I lost 48 million bucks just don’t do that. – A question, yes. – The first question is this: When you say save what exactly do you mean?
And second, does this apply to the personal income or the business income? – Okay, good question. When I say save it means to put money aside. What I do ’cause I like to spend. So I will have multiple accounts. I make sure once the money saved causes people to talk pay yourself first, right? Nobody does it. It’s just good theory, nobody does it. So what I do just for myself that when I make the money, I truly move the money into an account that I don’t touch it. So it sits in the bank?
- Yeah, it sits in the bank then when accumulating enough then I’ll do whatever I want to make So that means saving. Put it. I have some people that I know, entrepreneurs, that they actually have a bank account and tell the manager once I put money in don’t let me take it out. I don’t care, you need my thumbprint, whatever. Once it’s in don’t let me touch it. I don’t care if I say my house burned down I need the money. Don’t let me touch it alright.
They lack discipline. That happens too. But once you put it away, no. But now, with personal income, of course, it’s not personal income, it’s business income. Cause whenever you get taxed right. So guys like us, taxed the highest income bracket anyway, right? So it’s business income. Put it aside, yes. We have to collect all this money GSP, save money for federal taxes. Is this a good idea to take that money and put it in a tax savings account so it grows while you wait to pay it. – Yes, yes but that also, again, I’m not your accountant. Talk with an accountant. It depends on where you are income bracket, but consult with a professional. What’s the most tax advantage way of doing it? and it depends on what type of investments you want to make as well, right? So consult with a professional. The important thing is the ratio, the problem is most people, as the income grows, the spending increases.
You can increase but just follow the ratio. Anything below that you can spend. Go spend, have some fun. But as your income grows, you should have this. Makes sense?
- Now, this the most important slide. Yes. It’s all up to you. If you want to accumulate wealth faster, of course. You can do all the tricks After-tax, after expense after the bank fee. you can play all that game. It’s all up to you Truly is up to you. But the more you save and keep in mind, I’m not saying being cheap, I’m not talking about that I’m talking about how you manage your money. If as your business grows, income grows you put aside money. And here’s what’s interesting about money.
I’m talking about the psychology of money. For a second. That people talk about that a lot of the theories that you get from different financial books is very logical. Yes? It is very logical. The problem is we are human beings. We are emotional. We are not logical. So I have people who are very, very cheap. Have you ever watched extreme couponing and those types of shows? They dive in the dumpster, and they buy like 200 toothpaste, and then 300 shampoos, right? The problem with that is you are training your mind,
although you feel like you’re saving money. But you’re actually training your mind to have a lot of scarcity and fear about money. Versus the abundant mindset that I know I’m making more, I’m putting money aside and here’s what’s very interesting. That’s why I talk about the FU money idea. It’s not so much, oh it’s the attitude, or you know not to care about the world. Are you have such financial confidence and when you have money when you putting money aside.
That discipline. Any business deal. Any client you’re talking to you is not desperate. You come across confident. You come across, you know what? I got a solution. You’ve got a problem. I can help you in exchange for money. You want my help, glad to help you. You don’t wanna do business? It doesn’t really affect me. When you have that kind of attitude when it at that place? Guess what, money comes to you much faster. Money comes to you when you don’t need it. Money doesn’t go to people who desperately need it.
Cause if money does, all the in Hastings will be filthy stinking rich. Money goes to people who don’t need it. Money goes to people who can multiply it. Psychology-wise, when you are, well, you know what, that’s okay. I have my money aside, I’m saving, I’m investing, I’m okay. Well you know what, let’s do some business, from that place of strength? People love it. How many can sense when you doing business with people and they’re just desperate? they need it, they need money right now, have you seen those people?
Do you like doing business with those people? – No. On the other hand, how many sensors, you’re doing business with a professional, and you know they’re professional, they know their shit, and they got the goods, and you know they charge a lot, but you know they can produce results, right? Yeah, and you like to do business with those people. Cause success attracts success. Success attracts success. And that’s why I kind of elevate you guys come here dress up. Can’t get rich looking poor. You cannot get rich looking poor.
You can’t get rich feeling poor either. That’s why I like to elevate, it’s not about the suit, it’s not about the policies. It’s about upping your game. You wanna charge more money? Be more professional. Dress nicer, casual, doesn’t matter. At home doesn’t matter, but in business? Never get a second chance to make a first impression.