Getting Money Right

Show Notes

What you will hear and learn from this podcast:

We believe books change lives; they change the lives of the reader, they change the life of the author in the process of writing it, and also in leveraged impact.

We help people write and publish books to grow their impact, their income, and their business.

I figured, Hey! I’m learning how to run a business from professors who have never run a business; that doesn’t make much sense to me, so why don’t I drop out.”

“It’s not about the book, it’s about who you become in the process of writing that book.”

“The big phases of writing a book are idea, writing, production, publish, and launch.”

“If you’re a business owner, what is the conversation you are having over and over and over with clients or prospects?” When you write a book on that topic, you can point to it and you never have to talk about that ever again.”

Writing your book is a series of steps. Step one is mind mapping. Step two is going from mind map to outline; grouping your ideas into sections, which you then break into chapters. Step three is writing or speaking your chapters to finish your first draft.

“If you’re in the first camp, you love the writing but hate the marketing, you might think, “if I build it they will come. I will just publish it and not tell anyone.” That’s just not true. If you build it they will not come,... you have to tell them about it.”

Get behind the marketing [of your book] even if you don’t like it...You’ve got to learn this skill set.”

No one cares about you, your book, or your business as much as you do.”

If you don’t understand it, you can’t manage it.”

“I think there are all the other things that don’t get talked about enough, which are, the life skills that you learn in the process, and the confidence to role into the next thing and the next thing.”

“If writing a book has been on your next year or maybe someday list for years, maybe even decades, you have to go from maybe someday to maybe now.”

Resources

Self Publishing School - Website
Chandler Bolt Books - Published, Book Launch, How to Not Suck at Writing Your First Book
Budgeting tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com

Show Notes

Staying on Track in Difficult Seasons

Get honest with yourself

How committed are you to your financial health?

Is your long term financial well being more important to you than you satisfying your immediate gratification?

Are you engaged in a blame game? It’s not my fault!

Financial health is about personal responsibility.

It’s up to you. You are the benefactor or the casualty of your decisions.

Determine that no matter what comes your way it is your responsibility and no one else’s to manage your money well.

If you find yourself making excuses, “I’m doing my best” realize that you’re only giving yourself the license to continue making bad decisions.

3 things to do ahead of time to prepare for life challenges

Systematize your money management

Use a zero-based budget

Automate bills and regular expenses

Build an emergency fund.

1-3 months of bare-bones (survival) budget.

Grow to 6 months after paying off consumer debt.

Build your community / rely on your community

Money is a big deal and your finances can change very quickly. It’s important to be connected to a support group that will provide financial wisdom in times of crisis. These are non-family members that will tell you the truth, and give you unbiased advice.

Friends and family

Listen to GMR Podcasts or other financial experts for encouragement and to reinforce the basics.

Don’t be afraid to ask for support from your community, but also set a short-time line of when you think you’ll be back on track, make a plan to get back on track.

In the midst of loss:

Be self-aware

Take time to grieve

Take the appropriate steps to get healed (physically, emotionally, mentally)

Don’t make any big financial decisions

Know that things will get better. It may not feel like it, but this will pass, just like other seasons have come and gone, so will this one.

Resources

Budgeting tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com

5 Financial Mistakes to Avoid

Keeping up with the Joneses

Spend on purpose, and you’ll avoid the temptation to compare and keep up with others.

Not setting the next goal

Always have the next goal in place before achieving the one you’re working on.

Not protecting your wealth

Have proper insurance

Manage your cash flow and increase your reserves

Spending before saving

Save before you spend. This will ensure you never forsake your financial wealth and future for immediate gratification.

Not diversifying

Putting your eggs into one basket is risky. 

Invest in different asset classes such as real estate, businesses, stock, and mutual funds.

Increase your cash reserve to protect against having to dip into your long-term saving and investments.

Avoiding these mistakes is for everyone, regardless of where you are on a financial journey. Not only will this protect your wealth, but more than likely grow it.

Resources

GMR 133: Common -Sense Reasons to Buy Insurance
Budgeting tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com
Blog: The 5 Biggest Mistakes People Make With Their First Million

Guest - Omer Redden

Omer Redden is the best selling author of several books including:

How to Work from Home 

Life Doc: How to Succeed in Life Without Losing Your Faith, Family, and Friends

Give and Grow Rich: Change Your Mind, Change Your Money

In his day-to-day, he works with an Inc. 5000 fastest-growing company, Self-Publishing School, which teaches people how to publish their books and use those books to leverage their impact, income, and businesses.

What you will hear in this podcast:

“That power of community, and the power of like-minded people, made it possible for us to triple the level of donations they’ve ever had for that food drive.”

“I was learning what mission, vision, and value are, and as I was learning this stuff in the corporate world, I was like, why aren’t people doing this on a personal level?”

“We’re going to do the 70-year old exercise, and reflect back on who did we become, who did we have an impact on, and what made up our life?”

“Start giving today. Determine what that percentage is and just do it!”

Resouces

Give and Grow Rich: Change Your Mind, Change Your Money
Life Doc: How to Succeed in Life Without Losing Your Faith, Family, and Friends 
How to Work From Home - A QuickStart Guide: From Tech-Challenged to Tech-Pro in 1 Week 
Debt tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com
Beta Course Application

Show Notes

Guest - Omer Redden

Omer Redden is the best selling author of several books including:

How to Work from Home 

Life Doc: How to Succeed in Life Without Losing Your Faith, Family, and Friends

Give and Grow Rich: Change Your Mind, Change Your Money

In his day-to-day, he works with an Inc. 5000 fastest-growing company, Self-Publishing School, which teaches people how to publish their books and use those books to leverage their impact, income, and businesses.

What you will hear in this podcast:

“I saw the trajectory of my life and I didn’t like where it was going, and I knew I needed to learn a new mindset when it came to money.”

“I really truly believe I’m a writer, and that the Lord has equipped me to do that, and I felt that I needed to step into that gifting more.”

“You’re right, the consistency across the board is that these guys were extremely generous, and they were generous before they were wealthy.”

“Another thing about these billionaires is that none of them retired. They had a mentality to work 12 hours a day all their lives because they were that passionate and involved and driven to help.”

“The thing that stuck out to me was the giving because I wasn’t doing it.”

“My wife and I, our heart, couldn’t have been more full. When that happened it was the whole thing just clicked, and I was like, that’s when you give and grow rich.”

Resouces

Give and Grow Rich: Change Your Mind, Change Your Money
Life Doc: How to Succeed in Life Without Losing Your Faith, Family, and Friends 
How to Work From Home - A QuickStart Guide: From Tech-Challenged to Tech-Pro in 1 Week 
Debt tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com
Beta Course Application

Show Notes

Cost of raising a child - Check out this informative article on the cost of raising a child.

Saving for and Teaching Your Kids the Value of Saving

1. Begin with a personal financial assessment

Get an accurate picture of your own budget.

How are you managing?

Spending on purpose?

Saving for future needs (emergency fund, long term savings)

Do you have enough margin? This is where saving for your kids should come from.

Adding a child or two and starting to save for their future needs should not be done by sacrificing your future. 

2. Open a savings account for your child

Save birthday money, and holiday gift money - grows over time.

If your child earns an income, you could also help them open a Roth IRA account - gets a head start on long-term savings.

Parents and grandparents can make gifts into a kids’ IRA.

Can be used for certain expenses 

Education expenses

Buying a house

Certain emergencies

3. Save for your child’s life experiences

Vacations - fun experiences

Mission Trips

Study abroad

Save for a car (match 100% of what they save up to an amount).

Funding these without first saving for them can set your own financial readiness and health backward.

4. Save for your child’s college

529 Plan

Earnings from 529 plans are not subject to federal tax and generally not subject to state tax when used for qualified education expenses such as tuition, fees, books, as well as room and board. 

Contributions made to the 529 plan are not deductible.

One of the many benefits of saving for a child's future college education with a 529 plan is that contributions are considered gifts for tax purposes. In 2020, gifts totaling up to $15,000 per individual will qualify for the annual gift tax exclusion, the same as in 2019 and in 2018.

You only want to use the investments side of a 529 if you have more than 5 years to invest. (529’s are easy to set up at any major investment broker, like Vanguard, Fidelity, Charles Schwab, etc… you just click “open a 529 account” on their website and go through the process.

OPTIONS FOR COLLEGE SAVINGS WITH LESS THAN 5 YEARS TO INVEST

CD’s (Certificate of Deposit) saving account - Low risk with a 2 to 3 percent yearly return.

Online saving or money market accounts - Low risk and low return, usually 1.5 to 2 percent, but better than the average traditional banks.

Trying to find a 529 Plan, check out: https://clark.com/education/clarks-529-plan-guide/

Roth IRA - up to $6,000 a year in 2020.

Don’t forget to prioritize your own retirement savings

No matter what, you shouldn’t save for kids to the detriment of your other goals. Make sure to take care of yourself and your own future first.

Kids have more time to save for their future. You have less.

College expenses don’t have to be 100% covered by you, especially if you have 3, 4 or more kids.

Scholarships

Work programs

Jobs.

Make saving and investing for your own retirement a priority. Then, do what you can to save for your children. 

Your Children Have Options to Cover their Education Expenses

Putting off college for a couple of years to work full-time and save for education is also an option. This, in our opinion, should be seriously considered, especially if the child isn’t sure what type of career they want to pursue.

I, Leo, personally took a break between high school and college, and it proved to be very beneficial.  Not knowing which path to pursue, I got a full-time entry-level job. One year of working in the real world helped me to understand the value of higher education, and to commit to it wholeheartedly.  

A recommended guide from bankrate.com - How to save for your child

Resources

Beta Course Application
Blog on leosabo.com - How to Prepare for College expenses. 
Debt tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com

The scarcity mindset believes there are limited resources and inequality in possession of those resources. It further believes that for one person to succeed, someone must lose. In this episode of GMR, we reveal the truth about the scarcity mindset and why it isn't to your benefit to embrace it.

Show Notes

The Scarcity Mindset

The scarcity mindset is the belief that there will never be enough — whether it's money, food, or something else entirely — and as a result, your actions and thought stem from a place of lack. The belief that there are limited resources and if you have something, it means you’ve taken it off the market and taken someone else’s ability to have it. If you earn money, that’s money that I can’t earn. This is a false mentality.

Good | Cheap | Fast

The wealth of the world

1% of people own 44% of the world’s wealth...

56% have less than $10,000 in wealth.

This doesn’t take into account the fact that anyone can produce value out of nothing. Just because “anyone” can, doesn’t mean everyone will. But we want to encourage people to create, we want to incentivize people to produce.

Changing Terms: Owns to Manages

Jeff Bezos

Warren Buffet

Elon Musk

Musk, Buffet, and Bezos have an incentive to serve people… they increase as others increase.

Bezos has a direct incentive to serve the masses, if he’s efficient, he can hire more people, sell more products (to people who want to buy them), and he’ll personally increase in wealth.

Musk is doing much more to increase the likelihood of safe autonomously driving vehicles, or highly efficient batteries for electric vehicles than a government organization, or an individual who is not personally incentivized to serve others.

The wealthiest people have 90%+ wrapped up in their companies, which they manage.

Two other options available:

1. Have the government manage everything

Elected officials have very little incentive to be efficient and effective in their management. In fact, there’s a huge incentive to be corrupt, take bribes, and benefit their friends and family instead of the masses of people.

2. Re-distribute all the current wealth

Good managers will increase, while the poor managers will decrease.

Within a short period of time, wealth will be increased by those who manage it well, while decreasing for those who manage it poorly.

Resources

Beta Course Application
Debt tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com

To build significant wealth, you’ll need to move beyond being an employee. This is because there are only so many hours in the day, and when you’re employed, you can only trade a limited number of hours in a day for income. In this episode, we continue our talk with Josh Moore, the owner of Inclusion Coffee, to learn what it takes to build a business that never fails.

Show Notes

Things you will hear in this podcast:

I would buy a house, work my job, and in the evening, I would work on fixing it up. That was how I got enough money to put my own skin in the game towards a business.

Most investors, don’t even want to you about investing in a business venture if you’re not putting your own skin in the game.

Not every investor, even if they are willing to give me money, is a good fit.

Most people have one or two bosses when their working in a corporate environment. When you own your own business, you have millions of bosses. Every customer is your boss, and they can choose to fire you each and every day they don’t come and spend something at your company.

I don’t believe the customer is always right, but I do believe that every customer should be respected.

I always put myself in the investor’s shoes. I ask myself, “What do they want?”

Inclusion Coffee is when different parts can come together as a whole and not lose their individual distinctness. That’s my mission with Inclusion Coffee.

Resources

Inclusion Coffee - https://inclusioncoffee.com/
Debt tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com