Learning how to work on the savings account and building money for the long-term.
Only sixteen and a half percent of Millennials have over $20,000 in savings. Only sixteen and a half. So what’s the problem? Savings. We need more savings. We need you to have more money in your pocket.
So why don’t people have more money in their pocket? Because of five different challenges:
Income
Expenses
Taxes
Investments
Identity.
A lot of times people say, “Man, I want to have a very big income.” Well, you may have a big expense problem. Because what’s left is what matters to you, right? And then there’s taxes, but that’s a whole different discussion we’ll have.
So think about two examples here:
Example number one- We have somebody that makes $250,000 every year. That’s a quarter million dollar annual income. Many would say, “God, I wish made a quarter million dollar a year income.” Many people make a quarter million dollar a year income. But that same person spends $280,000 a year. That means he’s losing $30,000 per year. You know how many people I know like this? Hundreds of people that overspend what they make.
Example number two- Somebody makes $80,000 per year but they only spend $60,000. They keep $20,000 per year. The guy making $80,000 is saving more than the guy making a quarter million dollar a year income. So one has an income problem, because this guy would love to make a quarter million. The other guy has an expense problem; This guy wishes he only spent $60,000 per year.
So you may say, “Well, Pat. Okay. I want to make money.” Well, let’s talk about your income and expense problem first.
Let’s first start off with income.
What do you do to increase your income? If you have a job today and you’re watching this and if you don’t have something you do on the side, but you know every single talk show at night that you watch … Netflix, all this other stuff, you’re wasting your time. You don’t really care about have a lot of money. You’re just hoping to get lucky.
If you got a job and you’re broke, there’s no reason you should be coming home at night to watch TV. You should be selling something, creating something, learning a skill, having a side hustle, working overtime, getting another job on the side. You need to be selling something. And the highest paid money … the highest paid skill that you can learn about making more money is sales.
Number two, let’s talk about expenses.
You need to fire your consultant. If you’re a business owner running a business and you may have somebody doing a website for you, designing a logo for you, doing all this other stuff for you. Guess who they use?
They need to act like they’re the consultant but they go behind closed doors and they use company called Fiverr, which by the way, this video is sponsored by Fiverr. You just saw recently we teamed up with Fiverr. And everyone knows, you could go back to watch many videos in the past. I love Fiverr. I spent hundreds of thousands of dollars before I realized all these consultants could be found elsewhere.
What else can you do to minimize your expenses? Renegotiate all your contracts. Go through your monthly expense on what you’re spending on a monthly basis. Renegotiate your phone bill, renegotiate your cable bill. Renegotiate your cell phone bill. Renegotiate your internet bill. Renegotiate your dry cleaning rates. Go to your dry cleaners and say, “Man, I’ve been a customer of yours for 10 years, can you give me a discount?”
Renegotiate your tailor. Renegotiate every single thing. Every month I pull my director of finance aside and I say, “Who do we spend money on? It’s time to go renegotiate. We’ve been a customer with them for five years. How much money have we spent? Renegotiating time. Renegotiating time. Renegotiating time. Renegotiate all your contracts.
Live below your...