The Money Advantage® Podcast | Infinite Banking Concept & Family Banking

What Is Savings: Why We Need a Definition

https://www.youtube.com/watch?v=Fs6S8Kfwy8Q

In all the financial pressure you feel to plan for the future, have you ever stopped to consider, fundamentally, what is savings?  Often the answer is in asking the right questions.  Concerning great issues, this is one that will behoove you to ask, understand, and answer that question for yourself.Savings is a precept of wealth-building.  It’s a foundational cornerstone and precursor to success in almost every other area of personal finance and economics.

And yet, frankly, the savings levels of American adults are embarrassing.  Most people’s bank account languishes far beneath the level of what they want to have.

According to a 2016 GOBankingRates survey, 34% of all adults in the U.S. have $0, 35% have less than $1000, and ONLY 15% have $10,000 or more.

There’s a disparity between our desire to save and the amount we have.  For that reason, our mindset about savings becomes laden with guilt.

To add insult to injury, there’s confusion about what savings, in fact, is.

It’s pretty hard to achieve something you don’t feel good about or have a clear definition of.  It will continually be “un-prioritized.”

Table of contentsWhat Is Savings: Why We Need a DefinitionWhere Savings Fits into Your Cashflow Creation SystemThe Nuts and BoltsRelated Articles and Podcast EpisodesOur Definition of Savings Needs WorkThe Starting Point of Cash FlowThe Cause and the Remedy for Lack of Cash FlowSavings: What to Do with Cash FlowSafety vs. the Chance of LossThe Distinction Between Savings and InvestmentsThe LUC TestA Measure of the Quality of SavingsApplying the Savings TestAccounts That Are Not True SavingsRetirement Accounts like the 401(k), 403(b), 457, IRA, Roth IRA, and SEPHome EquityAccess to Capital Through Lines of CreditAccounts That Are True SavingsBank Accounts & Credit Unions: Savings Accounts, Checking Accounts, CDs, and Money Market AccountsTreasury Bills, Notes, and BondsCash Value of Life InsuranceMake It Easy to SaveAutomatic Savings Gives You the Power to Make Deliberate Investment ChoicesImprove the Quality of Your SavingsUse This Exercise to See How Your Savings Stack UpTake ActionHere’s What You Can Expect NextThe 7-Part Saving and Investing Series

Where Savings Fits into Your Cashflow Creation System

Building a stockpile of savings is to help you weather months of tight income or unforeseen expenses will move you light years ahead towards peace of mind and financial stability.  But it’s just one small step of a greater journey of building time and money freedom.  

That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.  

The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, and cash flow awareness.  This step frees up and increases your cash flow, so you have more to save and invest.

Then, you’ll protect your money with savings, insurance and legal protection.  Here, you’ll create the right canopy of protection in your financial life.  This second stage encompasses all aspects of Privatized Banking, a key savings and capital deployment strategy that secures your access to capital, maximizing your control, by allowing you to be your own banker.

Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.

The Nuts and Bolts

To clear the air and help you save more, let’s get down to brass tacks.

We’re tackling what savings is and what it isn’t.  We’ll answer:

What is savings and what is it not?

How do I know if it’s savings?

Where can I save my money?

What are the best places to save money?

And we’ll share the four top reasons why people aren’t saving, to help you overcome them and set you on a course to financial confidence and freedom.

The foundations are the most important pieces to get right.

https://www.youtube.com/watch?v=W1UpHGh7Pf0

Trump's tax reform has made a lot of big changes to the tax code.  Because of the overhaul, our proactive tax team posted a series of blogs outlining the changes and what they mean for you.  When we read them, we knew right away that we wanted to share them with you. So, we brought Dustin Griffiths back on the podcast to share the changes we think are most relevant to the small business owner.  We're also sharing the links to all of their blogs to help you gain more clarity.

Disclaimer: We've published this content for educational purposes only.  For individual recommendations and advice for your specific situation, please consult with a qualified tax professional.

Listen to the Podcast

This conversation expanded on each of the following topics.  We discussed examples and situations to help you understand how the changes will apply to you.  To gain the greatest understanding, be sure to listen to the conversation.

Where Taxes Fit into the Cash Flow System

Strategically (and legally) shrinking your tax liability is a huge part of fixing your money leaks.  But it’s just one small step of a greater journey of building time and money freedom.  

That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.  

The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund.  This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.

Then, you’ll protect your money with savings, insurance and legal protection.  Locating and solving your money leaks is just a temporary bandaid if there’s risk that you could lose it.

Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.

How Trump's Tax Reform Affects You

Corporate Tax Rates

Corporate tax rates went down from 34% to 21%.  However, C corps pay a double tax.  They're taxed at the corporate level and again at the individual shareholder level when you pay yourself.  Your total tax rate must account for both, and may effectively create a total tax rate of 36 - 51%.

20% Deduction for Pass-Through Entities

Pass-through entities, like partnerships, S corporations, and sole proprietors, now will only have to claim 80% of business taxable income.  However, there are additional calculations if your AGI is over $315K or ($157K if you're single), and for service-based businesses, to determine if and how you can use this deduction.

This is a “YUGE” tax savings for many small business owners!  Without doing anything differently, many of you are going to get a 20% reduction of your business's taxable income.

Vehicle and Asset Purchases

Asset purchases have received an expansion of the Bonus Depreciation and Section 179 definition, as well as the depreciation limits.

https://www.youtube.com/watch?v=W1UpHGh7Pf0

Trump's tax reform has made a lot of big changes to the tax code.  Because of the overhaul, our proactive tax team posted a series of blogs outlining the changes and what they mean for you.  When we read them, we knew right away that we wanted to share them with you. So, we brought Dustin Griffiths back on the podcast to share the changes we think are most relevant to the small business owner.  We're also sharing the links to all of their blogs to help you gain more clarity.

Disclaimer: We've published this content for educational purposes only.  For individual recommendations and advice for your specific situation, please consult with a qualified tax professional.

Listen to the Podcast

This conversation expanded on each of the following topics.  We discussed examples and situations to help you understand how the changes will apply to you.  To gain the greatest understanding, be sure to listen to the conversation.

Where Taxes Fit into the Cash Flow System

Strategically (and legally) shrinking your tax liability is a huge part of fixing your money leaks.  But it’s just one small step of a greater journey of building time and money freedom.  

That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.  

The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund.  This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.

Then, you’ll protect your money with savings, insurance and legal protection.  Locating and solving your money leaks is just a temporary bandaid if there’s risk that you could lose it.

Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.

How Trump's Tax Reform Affects You

Corporate Tax Rates

Corporate tax rates went down from 34% to 21%.  However, C corps pay a double tax.  They're taxed at the corporate level and again at the individual shareholder level when you pay yourself.  Your total tax rate must account for both, and may effectively create a total tax rate of 36 - 51%.

20% Deduction for Pass-Through Entities

Pass-through entities, like partnerships, S corporations, and sole proprietors, now will only have to claim 80% of business taxable income.  However, there are additional calculations if your AGI is over $315K or ($157K if you're single), and for service-based businesses, to determine if and how you can use this deduction.

This is a “YUGE” tax savings for many small business owners!  Without doing anything differently, many of you are going to get a 20% reduction of your business's taxable income.

Vehicle and Asset Purchases

Asset purchases have received an expansion of the Bonus Depreciation and Section 179 definition, as well as the depreciation limits.  This allows you to deduct 100% of the depreciation up front, in many cases, being able to fully expense the purchase price in the first year, for new and used assets.

This expansion puts more dollars in your pocket for large asset purchases.  However, the true test to determine whether to purchase an asset is whether you needed it in the first place.

Business Expense Changes

You can no longer deductions meals and entertainment expenses unless you use them for your employees.

If you find that you had a lot of these entertainment expenses or eating out with clients, business just got more expensive.

Changes in Real Estate Tax Laws

For residential or commercial real estate investors, the reform simplified the definition of property improvements and limited the 1031 like-kind exchanges to real property.  Additionally, rules to inventory, including real property, allow you to deduct the purchase of inventory up-front...

https://www.youtube.com/watch?v=AYUG9Qttgq4

If you want to seize opportunities like the wealthy, you will need to save like the wealthy. Building a financial system is a lot like barrel racing.Far away from the roar of audiences, the outcome of the race is determined by the hours of preparation and conditioning spent outside the ring, out of the public eye, before the race.Likewise, in building true wealth, developing a savings system is the preparation and conditioning it takes to succeed.

Where Savings Fits into Your Cashflow Creation System

Building a stockpile of savings is to help you weather months of tight income or unforeseen expenses will move you light years ahead towards peace of mind and financial stability.  But it’s just one small step of a greater journey of building time and money freedom.  

That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.  

The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund.  This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.

Then, you’ll protect your money with savings, insurance and legal protection.  Here, you’ll create the right canopy of protection in your financial life.  This second stage encompasses all aspects of Privatized Banking, a key savings and capital deployment strategy that secures your access to capital, maximizing your control, by allowing you to be your own banker.

Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.

Everything I Needed to Know I Learned from Equestrian Barrel Racing

As a teen, I rode horses.  I got into competitive racing in speed and agility games like barrel racing, pole weaving, and keyhole.

Just about everything I needed to know about life, I learned from the process of training to win in the ring.

Where Winning HAPPENS

The climax of barrel racing was the high-adrenaline, crowd-cheering, dirt-flying 28 seconds careening around the cloverleaf pattern of the barrel racing course.  Or it was the 11 seconds spent in the ring flashing through the pole-weaving course.

I lived for that part.  The moment of truth.  It’s where the winning happened.

From a spectator’s vantage point, it would be so easy to think it was the only part that mattered.

Where Winning Is CREATED

However, far more critical to the outcome were the hours upon hours of training and preparation.

To perform well, conditioning was essential.

There were warm-ups and cool-downs at a brisk trot.  We raced for miles upon miles across varied terrain to build endurance and stamina.  There were hundreds of hours of rides through the fields and forests, on trails, through swamps, and over fallen logs as we built agility and light-footedness.

We took hundreds of practice runs at all paces, focusing on the fundamentals.  There were lurching starts,

https://www.youtube.com/watch?v=AYUG9Qttgq4

If you want to seize opportunities like the wealthy, you will need to learn how to save money like the wealthy. Building a financial system is a lot like barrel racing.Far away from the roar of audiences, the outcome of the race is determined by the hours of preparation and conditioning spent outside the ring, out of the public eye, before the race.Likewise, in building true wealth, developing a savings plan is the preparation and conditioning it takes to succeed.

Table of contentsWhere Savings Fits into Your Cashflow Creation SystemEverything I Needed to Know I Learned from Equestrian Barrel RacingWhere Winning HAPPENSWhere Winning Is CREATEDWinning Is in the Fundamentals and Conditioning, Not the Climax Your Savings SystemWhy Most People Never Save MoneyOvercome Parkinson’s Law by Living on Less Than You Earn, Starting TodayThe Role and Function of Savings For You and Your FamilyA Simple 5-Step Strategy to Save More Money3 Target Cash AccountsHow Much to Have in Bank SavingsHow Much Do I Need in My Emergency Fund?Never Stop Building Your Opportunity FundSDLIC: An Ideal Storage Tool for Your Emergency and Opportunity FundsPreparation and Conditioning Translate to Both Business and Personal EconomiesUp Next in This SeriesFor More Ways to Save Money Check out the 7-Part Saving and Investing SeriesBook a Strategy Call

Where Savings Fits into Your Cashflow Creation System

Building reserves helps you weather months of tight income or unforeseen expenses, and will move you light years ahead towards peace of mind and financial stability.  But it’s just one small step of a greater journey of building financial freedom.  

That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.  

The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cashflow awareness, and restructuring how you save money so you can access it as an emergency/opportunity fund.  This step frees up and increases your cashflow, so you can save, and then use the extra cash to take advantage of opportunities.

Then, you’ll protect yourself with insurance and legal protection.  Here, you’ll create the right canopy of protection in your financial life.  This second stage encompasses all aspects of the Infinite Banking Concept, a key cashflow strategy that secures your access to capital, maximizing your control, by allowing you to be your own banker.

Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build freedom and leave a rich legacy.

Everything I Needed to Know I Learned from Equestrian Barrel Racing

As a teen, I rode horses.  I got into competitive racing in speed and agility games like barrel racing, pole weaving, and keyhole.

Just about everything I needed to know about life, I learned from the process of training to win in the ring.

Where Winning HAPPENS

The climax of barrel racing was the high-adrenaline, crowd-cheering, dirt-flying 28 seconds careening around the cloverleaf pattern of the barrel racing course.  Or it was the 11 seconds spent in the ring flashing through the pole-weaving course.

I lived for that part.  The moment of truth.  It’s where the winning happened.

From a spectator’s vantage point, it would be so easy to think it was the only part that mattered.

Where Winning Is CREATED

However, far more critical to the outcome were the hours upon hours of training and preparation.

To perform well, conditioning was essential.

There were warm-ups and cool-downs at a brisk trot.  We raced for miles upon miles across varied terrain to build endurance and stamina.  There were hundreds of hours of rides through the fields and forests, on trails, through swamps, and over fallen logs as we built agility and light-footedness.

We took hundreds of practice runs at all paces, focusing on the fundamentals.  There were lurching starts,

https://www.youtube.com/watch?v=CI2eDBJqyHY

Jimmy Vreeland is maximizing his real estate returns by using the premier financing strategy of the wealthy. As stand-alone tools, both real estate and high cash value life insurance are top-notch.  Their powers of cash flow, appreciation, equity, leverage, tax advantages, and a hedge against inflation are unrivaled by any other product.But when you combine these two high-quality assets together, your money does two things at the same time.  This gives you an unfair advantage parallel to none.

If you’re a believer in one or the other, see how using these two assets symbiotically will supercharge your results.

Where Real Estate Returns Fit in the Cash Flow System

We love cash flow.  Cash flow today is the stepping stone for cash flow tomorrow.

In the Cash Flow System, you first increase cash flow by keeping more of the money you make.  Then you protect your money.  Finally, you increase and make more.

Investing is part of stage 3.  Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.

Two Starting Points to the Same Bridge

You may be starting from one pillar or the other.

On the one hand, perhaps you have cash value life insurance.  You want more than just to let the money sit in the policy.  You’re asking: How can I use my cash value life insurance to invest in cash-flowing real estate to accelerate my financial freedom?

On the other hand, perhaps you are a real estate investor.  You want to finance most efficiently to increase your gains.  You’re asking: How do I amplify my real estate returns, by financing through cash value life insurance?

We found no one better to help you understand this strategy than Jimmy Vreeland.  He's a real estate investor who is exploding his real estate returns by building a bridge between these two assets.

Jimmy Vreeland is a passionate real estate investor who is helping other investors to reap the rewards of real estate investing.

The Advantages of Real Estate Returns

Jimmy Vreeland was an Army Ranger and US military officer who read Rich Dad, Poor Dad while he was in Afghanistan.

He realized that he wanted to create systematic, scalable wealth through cash flow in a low-tax environment.

He wanted an asset that he controlled, where he could build wealth by creating value instead of gambling through investments on Wall Street.

All the indicators pointed to real estate.

Consequently, he bought his first property in 2006 and began adding one property per year.

The Beginnings of a Real Estate Lease Options Empire

In 2014, Jimmy Vreeland and Bob Scott, both former US Military officers and Academy Graduates, partnered to create Joint Ops Properties. To capitalize on unique opportunities in the US Real Estate market.

Joint Ops is now a leader in lease option investment properties.  They have decades of combined experience behind them, with an emphasis on the St. Louis area.

Joint Ops Properties has been able to secure over 160 distres...

https://www.youtube.com/watch?v=CI2eDBJqyHY

Jimmy Vreeland is maximizing his real estate returns by using the premier financing strategy of the wealthy. As stand-alone tools, both real estate and high cash value life insurance are top-notch.  Their powers of cash flow, appreciation, equity, leverage, tax advantages, and a hedge against inflation are unrivaled by any other product.But when you combine these two high-quality assets together, your money does two things at the same time.  This gives you an unfair advantage parallel to none.

If you’re a believer in one or the other, see how using these two assets symbiotically will supercharge your results.

Table of contentsWhere Real Estate Returns Fit in the Cash Flow SystemTwo Starting Points to the Same BridgeThe Advantages of Real Estate ReturnsThe Beginnings of a Real Estate Lease Options EmpireProviding Value to Tenants and InvestorsA New Lease on Life for TenantsReal Estate Returns (Cash Flow) for InvestorsLife Insurance: A Parallel AssetSatisfying the Investor’s Need for LiquidityThe Advantages of Cash Value Life Insurance as a Funding Source to Boost Real Estate ReturnsPlugging the Two Assets TogetherStarting with Life Insurance and Adding Real Estate ReturnsStarting with Real Estate Returns and Adding Life InsuranceFind out More in the PodcastPodcast ResourcesLearn More About Privatized BankingCreate Your Time and Money Freedom

Where Real Estate Returns Fit in the Cash Flow System

We love cash flow.  Cash flow today is the stepping stone for cash flow tomorrow.

In the Cash Flow System, you first increase cash flow by keeping more of the money you make.  Then you protect your money.  Finally, you increase and make more.

Investing is part of stage 3.  Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.

Two Starting Points to the Same Bridge

You may be starting from one pillar or the other.

On the one hand, perhaps you have cash value life insurance.  You want more than just to let the money sit in the policy.  You’re asking: How can I use my cash value life insurance to invest in cash-flowing real estate to accelerate my financial freedom?

On the other hand, perhaps you are a real estate investor.  You want to finance most efficiently to increase your gains.  You’re asking: How do I amplify my real estate returns, by financing through cash value life insurance?

We found no one better to help you understand this strategy than Jimmy Vreeland.  He's a real estate investor who is exploding his real estate returns by building a bridge between these two assets.

Jimmy Vreeland is a passionate real estate investor who is helping other investors to reap the rewards of real estate investing.

The Advantages of Real Estate Returns

Jimmy Vreeland was an Army Ranger and US military officer who read Rich Dad, Poor Dad while he was in Afghanistan.

He realized that he wanted to create systematic, scalable wealth through cash flow in a low-tax environment.

He wanted an asset that he controlled, where he could build wealth by creating value instead of gambling through investments on Wall Street.

All the indicators pointed to real estate.

Consequently, he bought his first property in 2006 and began adding one property per year.

The Beginnings of a Real Estate Lease Options Empire

In 2014, Jimmy Vreeland and Bob Scott, both former US Military officers and Academy Graduates, partnered to create Joint Ops Properties. To capitalize on unique opportunities in the US Real Estate market.

Joint Ops is now a leader in lease option investment properties.  They have decades of combined experience behind them, with an emphasis on the St. Louis area.

Joint Ops Properties has been able to secure over 160 distressed properties. AND another 40 turnkey properties, often at just 30 to 40 cents on the dollar.  Joint Ops currently focuses on single-family homes and tenants seeking ...

https://www.youtube.com/watch?v=5PK5HP8mgFw

The concept of holding cash – savings – is such an intricate, multi-faceted one.  This series will walk you through the WHY, the compelling reasons to value and build cash savings. Then, we’ll show you how to apply it and reveal the key distinctions to keep you on track.If you have a great enough WHY, then figuring out what to do becomes important.  But it all comes back to WHY.Since we love Simon Sinek’s Start with Why concept, we aim to apply it in everything we communicate.  You may have noticed.

Where Savings Fits into Your Cashflow Creation System

Building a stockpile of savings is to help you weather months of tight income or unforeseen expenses will move you light years ahead towards peace of mind and financial stability.  But it’s just one small step of a greater journey of building time and money freedom.  

That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.  

The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund.  This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.

Then, you’ll protect your money with savings, insurance and legal protection.  Here, you’ll create the right canopy of protection in your financial life.  This second stage encompasses all aspects of Privatized Banking, a key savings and capital deployment strategy that secures your access to capital, maximizing your control, by allowing you to be your own banker.

Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.

Real Life Stories and Examples of the Ultra-Wealthy Who Have a Strong Cash Position

We know that theory without concrete evidence and facts to back it up is useless.  In fact, it will probably just fade out of your mind like a sand castle washed away by the waves.

Today we're digging into some examples of the ultra-wealthy who are comfortable being in cash.  They don't feel the need to be fully invested all the time.

We’ll discuss examples of Suze Orman and Mark Cuban, and their reasons for a strong position of safety and cash.

We’ll point you to a bank report showing that the super-rich with over $30 Million in investible assets often have about 35% of their total portfolio in cash.

And then, we’ll give you a Cash Flow Awareness Exercise you can do personally.  It's the same exercise that we use for our clients to help them think through their spending so they can free up more surplus cash each month.

An Empowering Philosophy of Saving

In Why the Wealthy Love Cash, Part 1, we discussed many of the ideas and philosophy about WHY savings is not only relevant but also crucial to your success.

Cash savings creates peace of mind so you’re able to operate from a mindset of abundance and confidence.

https://www.youtube.com/watch?v=5PK5HP8mgFw

The concept of holding cash – savings – is such an intricate, multi-faceted one.  This series will walk you through the WHY, the compelling reasons to value and build cash savings. Then, we’ll show you how to apply it and reveal the key distinctions to keep you on track.If you have a great enough WHY, then figuring out what to do becomes important.  But it all comes back to WHY.Since we love Simon Sinek’s Start with Why concept, we aim to apply it in everything we communicate.  You may have noticed.

Table of contentsWhere Savings Fits into Your Cashflow Creation SystemReal Life Stories and Examples of the Ultra-Wealthy Who Have a Strong Cash PositionAn Empowering Philosophy of SavingLearn from SuccessThinking About Your ThinkingThe Responsibility to Develop Consciousness in Our MindsetThe Purpose of Your MoneyWatch What They DoThe Conservative Strategy of Suze OrmanMark Cuban Is 50% in CashWorld’s Largest Wealth Manager Says High-Level Investors Hold CashWhat’s Your Why?The Cash Flow Awareness Exercise: First Steps You Can DoUp Next …The 7-Part Saving and Investing SeriesCreate Your Financial Freedom

Where Savings Fits into Your Cashflow Creation System

Building a stockpile of savings is to help you weather months of tight income or unforeseen expenses will move you light years ahead towards peace of mind and financial stability.  But it’s just one small step of a greater journey of building time and money freedom.  

That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.  

The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund.  This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.

Then, you’ll protect your money with savings, insurance and legal protection.  Here, you’ll create the right canopy of protection in your financial life.  This second stage encompasses all aspects of Privatized Banking, a key savings and capital deployment strategy that secures your access to capital, maximizing your control, by allowing you to be your own banker.

Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.

Real Life Stories and Examples of the Ultra-Wealthy Who Have a Strong Cash Position

We know that theory without concrete evidence and facts to back it up is useless.  In fact, it will probably just fade out of your mind like a sand castle washed away by the waves.

Today we're digging into some examples of the ultra-wealthy who are comfortable being in cash.  They don't feel the need to be fully invested all the time.

We’ll discuss examples of Suze Orman and Mark Cuban, and their reasons for a strong position of safety and cash.

We’ll point you to a bank report showing that the super-rich with over $30 Million in investible assets often have about 35% of their total portfolio in cash.

And then, we’ll give you a Cash Flow Awareness Exercise you can do personally.  It's the same exercise that we use for our clients to help them think through their spending so they can free up more surplus cash each month.

An Empowering Philosophy of Saving

In Why the Wealthy Love Cash, Part 1, we discussed many of the ideas and philosophy about WHY savings is not only relevant but also crucial to your success.

Cash savings creates peace of mind so you’re able to operate from a mindset of abundance and confidence.  With that perspective, you'll make better decisions and have greater clarity.

Savings has guarantees.  That creates more options in the future.

Because you have peace of mind and guarantees, you’re not desperate.  You focus your time and energy on the right clients, activities,

Kim Butler is a champion of Prosperity Economics principles who's bringing them back into the mainstream.  She’s revitalizing the traditional way of thinking, condensing age-old wealth principles into the 7 Principles of Prosperity.  She helps people get their money doing more jobs and building wealth outside of Wall Street.She’s the owner of Partners 4 Prosperity, a Registered Investment Advisory firm dedicated to the Prosperity Economics Principles.Additionally, Kim serves as the co-host of the Prosperity Podcast and a best-selling author of 6 books, including Live Your Life Insurance and Busting the Retirement Lies.She’s recommended by financial thought leaders like Robert Kiyosaki and has been listed in Investopedia’s top 100 most influential financial advisors in 2017.

She’s been a tremendous influence on the philosophy and work of The Money Advantage, and we have the utmost respect for her.

In this interview, we discuss her backstory.  You’ll see how she developed her financial wisdom and how her abundance mindset is allowing her to continue her objective to help as many people as possible in as many ways as possible.

Where Prosperity Economics Principles Fit into the Cash Flow System

At The Money Advantage, we are a community of wealth creators.  We are entrepreneurially-minded business owners who are taking control of our lives and financial destiny.  We have a compass that always points back to the principles of wealth, not just to strategies or products.  You need the right mindset, philosophy, and principles of abundance, expansive thinking, creation, cash flow, and control in place first before any financial tactics can genuinely benefit and serve you.

In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money.  Finally, you increase and make more.

This conversation on the Prosperity Economics principles of wealth creation fits right into the very first step of the first phase.

Here are the interview highlights:

Before Kim Started Partners 4 Prosperity

[3:30] Kim was a “typical” financial planner, with a Series 6 and 7 licenses to sell stocks, bonds, and mutual funds.  She made her living creating and delivering financial plans.

When she became aware of the assumptions that made the plans unreliable the moment they were printed, she became disenfranchised with typical financial planning.  She felt she was subjecting clients’ money to so much risk.

The Assumptions of Typical Financial Planning