The Importance of Financial Literacy and Sharing Knowledge for Generational Success

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Selfishness with Information

• People today are often selfish with information.
• You have to ask to receive it.
• Finding valuable information about success is difficult, even when you ask for it.

The Value of Information

• Everyone’s version of success is different.
• Real success doesn’t necessarily mean fame or stardom.
• Information from someone who’s experienced success can add value to your journey.
• You don’t have to follow it exactly, but it provides options and perspectives.

Sharing Experiences

• Life is full of ups and downs, speed bumps, U-turns, and brick walls.
• Through all these, mental fitness improves over time, like being in a mental gym.
• Making better decisions comes from learning from past mistakes.
• Sharing both successes and failures helps others view the landscape differently.

Inspiration from Success

• To outsiders, successful people often seem unattainable or like aliens.
• Honest stories about real-life experiences provide valuable fuel for others.
• Many motivational speakers haven’t experienced real challenges, making their advice less meaningful.
• Genuine experience builds trust and resonates more with people.

Truth in Financial Literacy

• Kevin Hart had a conversation with J.P. Morgan Chase about financial literacy in the Black community.
• He emphasized the need for people who have lived in inner-city environments to teach financial literacy.
• These teachers should speak from experience, not hypotheticals.
• There is no real financial education in Black communities. Topics like ownership, investments, and stocks are rarely discussed.

Real Life Financial Lessons

• People need to understand why practices like using check-cashing places or free credit cards are harmful.
• Educating about these behaviors early can prevent future financial struggles.
• Kevin’s relationship with J.P. Morgan Chase is built on his truth and authenticity.
• He advocates for delivering financial information in a relatable and real way.

Sharing Knowledge to Prevent Mistakes

• Kevin shares his mistakes to help others avoid them.
• Knowledge should be passed on to prevent others from making the same errors.
• Giving real, hard-earned advice can advance others’ possibilities.

Responsibility for the Next Generation

• Our job is to set up the next generation for success, whether we admit it or not.
• If the next generation isn’t set up to do better, it’s a failure on our part.
• Progress requires breaking ground and going beyond what was done before.
• Sharing information and experiences is key to growth.

The Role of Investment and Awareness

• Kevin realized through the pandemic how important understanding the economy is.
• He began teaching his kids to recognize the companies behind everyday products they use, like toothpaste and Starbucks.
• Investment is about recognizing where growth is happening and putting money into those places.
• It’s essential to pay attention to the world around us and learn from it.

The Simplicity of Investment

• Investment doesn’t require large sums; it can start small.
• It’s about consistency and understanding where money can grow.
• Many people ignore the simplicity of investing and miss out on financial growth.

Impact of Real Experience on Success

• Kevin’s career took off after the Shaq All-Star Comedy Jam, which led to sold-out shows and increased visibility.
• His success was fueled by hard work and the opportunities that followed from one breakthrough moment.
• Understanding the process behind success is crucial for continued growth and advancement.

Conclusion

• Financial literacy, sharing knowledge, and guiding the next generation are critical responsibilities.
• Real experience, honesty, and authenticity make a difference in inspiring and educating others.
• It’s important to stay aware of the economy, investment opportunities, and ways to grow wealth over time.

Financial Security and Freedom Levels

• He owns multiple sports teams, including soccer and football teams.
• Financial security is the first level.
• Financial vitality is the second.
• Financial independence is the third.
• Financial freedom is the fourth.
• Absolute financial freedom is the final level.

Breaking Down Financial Security

• Financial security: Passive income covers all your bills.
• Financial vitality: Your income covers half of your luxury lifestyle and half of your expenses.
• Financial independence: Your passive income covers all of your expenses and luxuries.
• Financial freedom: You have enough income to cover both your lifestyle and expenses without working.
• Absolute financial freedom: Your ultimate dream lifestyle is fully supported by your passive income.

Understanding Financial Independence

• You do not have financial freedom if you are still clocking in to work.
• Financial freedom means all bills and luxuries are covered without needing to work.

Three Key Money Principles

1. How to get money.
2. How to keep money.
3. How to multiply money.

• People get rich by producing money.
• The middle class gets trapped by earning money.

The Pitfalls of Earning Money

• If you earn money, you are vulnerable—one illness, job loss, or crisis away from financial trouble.
• Producing money allows for greater control and stability.

Absolute Financial Freedom

• Absolute freedom means that even when you imagine a new goal, your passive income can cover it.
• This is the highest level of financial freedom where dreams are supported by passive income.

Brokers and Annuities

• Brokers pushing annuities often prioritize personal gains.
• Financial advisors may not always act in your best interest unless they are fiduciaries.
• Fiduciaries are legally bound to act in the client's best interest.

Hidden Fees and Their Impact

• Compound interest can help your investments grow over time.
• However, fees such as trustee fees, legal fees, and transaction fees can eat away at your returns.
• Over time, fees can take away a significant portion of your potential earnings, much like termites destroy a foundation.

Choosing Investments Wisely

• Low-fee index funds are often more beneficial than high-fee actively managed funds.
• Active funds may not always outperform the market, and the fees can erode your returns.

Working with Financial Advisors

• Ensure that your financial advisor is a fiduciary, not just someone looking to earn commissions.
• Many financial advisors operate for profit, potentially giving advice based on their commission structure.

Real-World Examples of Poor Advice

• Grace’s financial advisor was not a fiduciary and gave limited options based on commissions.
• Fiduciaries offer a broader range of investment options and prioritize your financial goals.

Moving Beyond Cash

• Cash is not a true asset; assets are things that put money into your pocket.
• Use cash to invest in assets that grow and generate income.

Leveraging Relationships for Assets

• Leverage relationships and knowledge to acquire valuable assets.
• Focus on obtaining assets that matter and will generate long-term wealth.

Poverty vs. Prosperity

• Poverty includes anything that isn’t abundance.
• If you aren’t in prosperity, you are still in poverty, regardless of how you try to soften it.
• Once you transition to prosperity, your income will eventually catch up.

Two Financial Paths

• There are only two paths: poverty and prosperity.
• The moment you leave poverty, you are on the road to prosperity.

Final Reflection on Assets

• Assets are key to financial freedom, and leveraging them properly leads to sustainable wealth.

Financial Teaching and Blessings

• The writer is emphasizing gratitude and blessings, regardless of current circumstances.
• Actively blessing the Lord while understanding what you're going through is key.
• Understanding scripture means breaking it down in practical terms.

Introduction to Financial Classes

• Grace and Tempestt (TNG) proposed doing 10 financial classes every Tuesday.
• Tempestt has a unique financial situation that will be discussed.

Cash and Finance Differences

• Cash is not finance.
• Knowledge and money are not finance either.
• Finance is a distinct concept from money.
• Financial problems persist even if you know how to raise money.

Spending Problems

• Grace asks how to stop having a financial and spending problem.
• The root cause of spending problems is often ego.
• People buy things they don’t need because of a lack of discipline.
• If you don’t have customers paying for your expenses, something is broken.

Customers and Spending

• Deanna doesn’t want to stop her spending problem but wants to finance it.
• Customers need to pay for everything.
• Leverage your current opportunities to funnel money into real estate.

Spending and Ego

• Spending problems are rooted in trying to keep up with others.
• Discipline is lacking when your worth is tied to things.
• Diana suggests having customers finance what you want to buy.

Commandments of the Millionaire Fastlane

• Commandment of Need: Never start a business just to make more money.
• Commandment of Entry: The harder it is to enter the business, the better it is.
• Commandment of Control: You must have full control of your business.
• Commandment of Scale: The larger your business can scale, the more you can earn.
• Commandment of Time: Make sure your business doesn’t require constant time investment.

Identifying Customer Needs

• Businesses should solve customer needs, not just fulfill the owner's desire to make money.
• Ask customers what they need and structure services accordingly.

Scalable Business Models

• Your business should be scalable to reach millions of customers.
• Cybersecurity, for example, is a scalable industry with high demand.

Investing Wisely

• If you want to own something (e.g., Lexus), don’t buy the product, buy the stock.
• Investing in assets, not liabilities, leads to financial growth.

Financing Your Lifestyle

• Customers and clients should be paying for your expenses.
• Focus on building a business model where your passive income supports your spending.

Financial Insights: Entertaining but Focused on Real Wealth

• Complaining Customers and Netflix
• In ATS, there's always that one customer who complains too much, just like everyone has that one person they want to avoid.
• Netflix keeps people from going to jail by offering an escape.
• Entertainment, such as Netflix, serves a need to distract people from stress.
• Entertainment as a Need
• Whether it's Netflix or other entertainment, people seek relief from stress or pain.
• This is why industries like strip clubs and porn continue to exist.

Commandment of Time – Automating Your Business

• Automating Business for True Wealth
• A real fast lane business must automate so that it can run without your constant effort.
• Example industries include:

1. Internet-based businesses: Lead generation, social networks, advertising, e-commerce, subscription-based models.
2. Innovation: Create a new or improved product and distribute it.
3. Iteration: Franchises and real estate, though they may violate scalability, can still be profitable.

• Duplication of Efforts
• If you cannot personally manage 100 companies, you need to develop technology (e.g., apps or tools) that automates your tasks.
• If you can’t build it yourself, buy or rent someone else’s tool and sell it as your own.

Millionaire Fastlane: Five Commandments

• Commandment of Need
• Don’t start a business just to make more money. Start because you’re solving a problem or fulfilling a need.
• Commandment of Entry
• The harder it is to enter your business, the better. A high barrier to entry protects your market.
• Commandment of Control
• Ensure full control of your business. Don't rely on third-party decisions that could ruin your operations.
• Commandment of Scale
• Your business must be scalable to reach millions of customers.
• Commandment of Time
• Your business must eventually be automated so you can earn money without sacrificing time.

Financing a Lifestyle

• Grace’s Spending Problem
• Spending problems often stem from an ego problem, where people buy things they don’t need.
• The solution is either discipline or ensuring that customers are paying for your lifestyle.
• Leverage current resources to funnel money into assets like real estate.

Business Models and Commandments Applied to Tempestt

• Focus on Automation in Cybersecurity
• Tempestt needs to automate her cybersecurity services through tools, apps, or programs.
• The goal is to create a proprietary system that doesn’t require her direct involvement.
• Multiple Streams of Income
• ATS’ success is rooted in scalability, entry barriers, control, and automation.

Earning Money and Growing Wealth

• Save More Money
• The only way to save more money is to make more money.
• Don’t just reduce spending; increase your earnings through side hustles, investments, or other ventures.
• Invest Wisely
• Don’t just buy luxury goods. If you want a Lexus, invest in Lexus stock.
• Every expense should be viewed as an opportunity to increase wealth.

Real Estate and Investing in Inflation

• Real Estate
• Buying fourplexes offers more income streams than single-family homes.
• Use tenant rent to fund your lifestyle and investments.
• Stock Portfolio Diversification
• In times of inflation, invest in commodities and gold, as well as inflation-linked bonds.
• Long-term and intermediate US bonds should make up a significant portion of your portfolio to maintain steady returns.

Annuities and Managing Risk

• Annuities as Risk Management
• Annuities offer guaranteed income until you die.
• They are not investments but agreements with insurance companies.
• The downside: If you die early, the deal may not work in your favor.

Reverse Mortgages

• Reverse Mortgages
• Pay more upfront, but over time, the payments decrease.
• This strategy is ideal for those who want to reduce financial strain in later years.

Key Principles to Accelerate Wealth

1. Save and Earn More Money

• Increase your income and be strategic about savings.

1. Reduce Fees and Taxes

• Optimize your spending and negotiate with service providers (e.g., internet companies) to lower fees.

1. Improve Your Returns

• Invest in diversified portfolios that include stocks, bonds, and commodities.

1. Change Your Lifestyle

• Prioritize assets that produce income over luxury items.

Final Thought: Success Requires Continuous Effort

• To build real wealth, always focus on improving your financial position through smart investments, reducing unnecessary expenses, and ensuring scalability in your business.