Episode #36 – Winning Financial Tips

7 Winning Financial Tips!

  1. Know where your money is and where it’s going! Put a GPS on your cash!
  2. Change your W4 and save the additional income you’ll get from reduced taxes.
  3. Build Emergency and Cash Reserve account.
  4. Knock out some debt!
  5. Pay your self first!
  6. Build your banking system for capital, planned purchases, opportunities, tax advantages.
  7. Learn and educate yourself about investments.

Hi and welcome to another wealthy and wise Wednesday, thanks for joining us on this podcast or video, hope all is going well with you in your life. I have been reading a ton of stuffs lately, all kind of financial stuffs and I really kind of enjoy that, where I know for a lot of people finances can be very depressing especially if you have a lot of debts looming over your head every month and wondering maybe how that next car payment or credit card is going to get paid off and I totally understand that feeling. Like I said can be a bit depressing and I kind of want to talk about some tips that might help out in that regard because the main thing we can do for anybody out there is to just get them on a good solid path towards financial freedom essentially and you can almost feel overwhelming if you have too much looming over your head. So I came up with about, oh goodness probably 30 different tips, just little things that you can do that might better your situation, I thought 30, wow that is just overwhelming right, just too many to think about, so what I thought I would do is breakdown you know maybe somewhere between five and seven of them over the next couple weeks and just bring a little bit of clarity and focus and maybe just the idea here or there that can help you out.

[00:02:10] Again, just to alternately better your financial situation because that is what all of these is about. I mean the only reason why you work, the only reason why you invest is to kind of better your financial situation. But 30 things you know where would you start. And so let’s just kind of break them down by size chunks, nothing too dramatic, nothing so incredibly difficult that you couldn’t at least you know attack some of these stuff.

[00:02:43] so the first one is let’s just see where your money is going, I know that is pretty simple and basic but if you don’t know where your money is going, there is no way you are going to ever be able to determine or to eliminate it from going to places that aren’t really helping you out a lot. So you got to kind of get a starting point, you got to kind of know where we are at, what money is coming and then again where is it going. If you are like most people and I will probably show this next week because I think this is pretty eye opening but you know the average American has somewhere between 34 and 54% of all their money gets transferred away to someone else. That could be a bank, a credit card company, automobile, whatever that might be but think about that, 34-54% of all your money, every time you bring in a dollar, maybe it is much like 50-54% goes to somebody else. That is a lot of money over time.

[00:03:55] So let’s just first get a little bit of GPS on your money, see where it is, see where it is going each month. Small little simple budget, there is a million of them out there and I will try to put a link to one, just jump on an excel spreadsheet, fill in a few things, see exactly where things are. Okay, here is a good positive one, there is a really good chance that you are going to have extra money this year or coming with each paycheck, so you want to first do is go make sure, talk with your HR people or maybe your CPA accountant or somebody and adjust your W4, because that W4 is what determines how much money is being held in tax at each pay period and with the new tax break, there is going to be millions and millions of people out there who are going to be taking home extra money in their paycheck. Now here is the key, don’t spend it, let’s do something very productive with it, let’s build up an emergency fund, let’s build up a savings fund, let do something and that by the way number three on our list is build your emergency and your cash account and when you do that you are just going to get this little piece of mind and that is a perfect opportunity because whether that 50 or 100 or 200 dollars extra amount, maybe even more, that is money that you can finally put aside, get your emergency reserve built up, get a cash account going and at least give yourself a little bit of breathing room in case a month or two didn’t work out quite how you talk and you need to access some capital.

[00:05:53] so this is a perfect opportunity, this probably won’t take hardly any effort, it is not going to take any change in lifestyle all you got to do is take that extra money that is coming to you and your normal income check because you are going to get a little tax break this year and just save it. Look as soon as you let that path of your, become a part of your monthly outflow, it would be just too hard to bring it back. So it is so much easier right now just to stay status quo, take the extra money, get it built up. Then after we do that for a little bit, then let’s start to knock out some of the dead and there is some really good program out there for that as well. Now, whether you knock out the smaller steadfast, or you knockout the highest interest rate first, what is most important is that you just build up a plan of attack so that you get it eliminated and whether again, there is so many different ways to go about this and typically what you are going to do is find success really quickly.

[00:07:05] so a lot of people that I have talked to over the years what they do is knock out the lowest dead first, maybe have a two to three hundred dollars’ credit card and that is going to take you four or five months to knock that out but once you do that it just feels good and you feel success quickly. So after we got an emergency reserves and cash [00:07:24] start knocking out some of that dead until we knock out even the big ones and truthfully if you do this right and you use what is called a snowball in that elimination program. Well, that could knock out all your debt even in your home and as little as 9-11 years if you really stuck with the plan. And maybe you know all that and paying off the home and everything isn’t in your ultimate goal and that is okay.

[00:07:58] Okay, then the next thing we want to do is start increasing our savings and our investment accounts and if I go back to the book, richest man in Babylon, a great book to read and everyone should read it, it is very short and easy to read, it just gives some easy steps and one of the first step is to pay yourself and that just kind of make sense right? I mean you are doing all the work, you are the one spending 40-60 hours a week working, why wouldn’t you put yourself at the front of that line but no we put banks and mortgage companies, some car companies and that credit card, we put them all first before ourselves and we should put ourselves at the front of that line and make sure that we are saving and able to have some money to invest as well.

[00:08:50] and one of the ways to do all these by the way which is my sixth point for the day and that is to build your own banking system. With your own banking system, it can be a great resource to eliminate that, it can be a great resource for plan purchases in the future and suddenly capital for opportunities to take advantage of down the road as well. And then it’s got all these package up with guarantees and tax advantages and debt benefits and so forth. So building that banking system can be a huge way to really get you on track. It could be a great place for this extra money that is coming in through your income due to the tax reduction. It can be a great emergency reserve, obviously a tax account. Then we can start using some of that money and knock out some of the larger debt and tell ultimately your own banking systems and now that 34-54% of the income that you have normally going to somebody else is now coming back to you. And that is how you can really build some wealth virtually without any risk at all.

[00:10:07] And then the seventh and the last one we will talk about today, is take time to learn and understand about investments, we love investments, I mean everybody does but they can be extremely risky and they can be you know devastating to some portfolios if you don’t really understand and learn how investing works and the best ways to go about it and when to go about it. There is so much good information out there and we are going to have some additional books and videos and courses on how to do this type of investing because it is really kind of the Warren Buffet style approach to making sure that when you invest, you investing with value and mind. We will get into that little bit later but take some time to learn this stuff because that is going to be critical in managing your portfolio down the road and the more you manage, the better off you are going to be. You don’t want to just be rely on some financial advisers to take your money and go back mutual forms. That is not good investment practice, yet, that is what 99% of the financial advisers do out there and we call this managing your money and it is really not. It is just throwing darts and hoping that the market keeps on skyrocketing like it has.

[00:11:30] by the way, we have had some good years and typically we are in a 10-year period of time, we have both good and bad years, well we have almost gone a good decade without really having some down years. So that is likely around the corner, I don’t know when, I wish I had a crystal ball but understanding how the investment work and when to get money off the table could be critical at this stage.

[00:11:56] so there we have it, those are easy bit size, I mean there is certainly life-long strategy for sure but there are things you can get started with and go right now, so let’s just review real quick. 1. let’s see where your money is going, what is coming in and where it is going. Put a GPS tracker on that thing so that we can figure out how much of that we can bring back to your wealth as we go along. Then again get that extra money coming from the tax reduction this year, give those W4 adjusted so more money is coming back to you and then let’s put it away, let’s save it. Don’t spend it, build that emergency and cash reserve then we can start knocking out some dead if you have the capacity, you can start building your banking system now, that is going to be a huge benefit for you in the future and certainly as you get down looking for opportunities to invest, looking for ways to reduce major debts and having all those tax advantages as well. And then finally number 7, let’s take some time to learn and understand investing principles so you can work your banking system in the most advantageous way possible.

[00:13:15] So that is it, how is that, we will go over some more tips in the next few weeks but this I thought was really a good time especially since we got those tax benefits coming to us, pretty much about now, they anticipated that by February or March you are going to start seeing the difference in your paycheck. So let’s grab that difference and make a really good of that extra money that you are going to have inflowing into your family. As always if you have any questions, make sure you reach out, just send them to question@wisemoneytools.com I will try to answer them just as quickly as we can, make sure you subscribe to the videos in the podcast and stay on top of this stuff. We got some great things coming out, like I said, just a lot of good stuff, we got an infinite banking course coming out soon and I think you are really going to appreciate that. Going from an A-Z and it is going to be really in-depth and I will give you more information as we go along and again, any suggestion or thoughts or comments that you have, please send them as well again to the same email, questions@wisemoneytools.com and we will look forward to talking to you next week. Until then have a great weekend and very happy, wealthy and wise Wednesday, take care.

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