Financial Education - Know Better To Do Better
when you know better, you can do better. It truly is all about knowledge. The biggest mistake we have made in America is we don't teach money in school every everything I'm gonna teach, they should have been taught to you by the time I got high school, it is an absolute flaw in our academic system that we spend a fortune on that We don't teach money in school. It is wrong. And so most americans are fundamentally financially illiterate and then you are basically designed to be broke almost from birth because if you don't know how to do well financially, if you don't know how to play the game of money, you are quite frankly doomed. The banking system, the insurance system, the car industry, I can just go on and on and on all these corporations and industries are designed to take your money but you can fight back with some basic information and that's where we go today. Today is about what I call it, timeless truths and principles that work. The load factor master class. This is the Germa...
ny that we're going to go on today. We're gonna go on a journey that shows you you're richer than you think you're stronger than you know, you deserve your dreams to come true. Here's what we're gonna uncover. We're gonna talk about your why when it comes to money, why do you want to be financially free if you want to retire early? Why is that? What's driving you, you get clear on your why you become unstoppable. How do you become rich on an ordinary income. See we're sort of trained to believe if we could make more money, we could save and invest. And then what happens in the real world is we make more money. What do we do spend more money? And that's because everything is designed for us to spend more money, Make more money and you deserve to have nicer things. So you spend more money so you're constantly broke and then at a certain point you just get tired and you get, you start to lose hope. So I want to show you that you don't need a lot of money to have a lot of money. I'm gonna show you the exact formula to becoming a millionaire. And how do you transition again from where you are today to where you want to go? So to get there, we're gonna have to shoot you how to make your money make money because I promise you, you cannot get rich by saving in a bank account, earning nothing. It's not possible unless you inherited millions of dollars or win the lottery, don't buy lottery tickets. You're just not going to build wealth at 1% or zero $50 billion dollars in bank accounts, earning zero right now. So we need to show you how to get 789 or 10% of your money. And I'm gonna teach you a rule called the rule of 72 that will show you how long it takes to double your money. I'm gonna teach you what's called the investment pyramid. I'm gonna go through all the different types of investments today, literally from checking accounts all the way to the top of it to its high risk. So you can get higher rates of return. I'm gonna show you what habits truly make millionaires. I mean, sure, if you want, you need to forgive yourself if you're not where you want to be because we're really good at beating ourselves up and you got to stop. So wherever you are today, what matters is where you're going tomorrow and you gotta you gotta let it go. You gotta move forward. You've got to change your story. So I said to you, when you know better, you can do better. And what I'm gonna show you right now is what I call the timeline of life. And that is our cue for these guys to bring in this timeline and what I want to do with this timeline. Like, again, this should be taught, I think in high school, but I'm gonna teach you to today because it's an important way for you to think about your life. Yeah. When would you say most people get their first job? 15. Most people, most people what? Yeah, I'm gonna I'm gonna I'm gonna make the argument that most people get their first job in their twenties, right? So I want you to follow me here for a second. Most people really, most people go get their first real job. If they went to college at 21 or 22, I'm gonna use 20 to keep the chart clean. All right. So, you didn't have to work from here to here? True. We would call that the no work time, which is why adults always say I wish I were a kid. Right? So, but then, you know, when you get a job, how long do most people work? What do most people retire? Mhm. The 65, 67, 68. Here's The Truth Across America. Most people are done working by 60. The actual age that most people retire right now is 62 Now, it's not because everybody wants to retire at 60. It's because 56% of workers who have jobs are forced out of work Between the age of 15, 16. This is I know that you guys are looking me like it is slightly depressing. It's a super important point. The reason is super important point is that you've got one decade, two decades, three decades, you have three, you have 30 years on average to make your money move. You've got 30 years to take the money that you're making and pay yourself first, which we're going to go through compound interest works when you work it. I'm gonna show you relentlessly in the next two hours through the latte factor through this book. How small amounts of money can massively change your life and you're gonna go, yeah, that's amazing. But it takes decades? It does because you're not gonna get rich overnight. You weren't trying to get rich overnight. You will stay poor forever. I would say by the time you see you see a banner ad or instagram ad or in anything at or that says I have a solution to make you rich overnight. I I can promise you that is a solution for you to be poor forever. Right? The way you build well takes decades. It took my grandmother decades took me decades. But once you start to get these compound interest charge, it starts the money starts to grow and grow and grow. Now some of you are like, well I'm 50, this sucks. Um these decades still work. You just gonna have to everything to work longer and big savings. You shouldn't give up at 50 if you haven't started, you shouldn't give up at 60 if you haven't started. My grandmother died at 86 and she was buying stocks at 86. But here's the thing I wanted to show that's the most important thing to know. Well all this is important from here to here represents 90, hours. You're going to work 90,000 hours over your lifetime. I know, wow. Right? Some of you have already worked the 90,000 hours because you don't have 40 hour work weeks, right? Some of you are gonna work 100 110, 120,000 hours. The question is how much of that time that you traded for money are you going to keep? I will say this because it's so important to say this. It's not most people's fault that they're struggling. Uh, it's the government, you know, it's the government's fault. It's the government's fault because where frankly we didn't put this stuff in school. Um, and now what's happening is that we are bearing young people and college debt. There is $1.5 trillion Security. It's running out of money. Now. I will give you good news, people like Social Security gonna go away, never gonna go away by the way. So screws now hold ton of money anyway, But it happens to be what? seven out of Americans who are retired depend on health care. I would argue that our health care system in America is the most expensive health care system in the world and it's not helping us live longer and it's getting more expensive. And then I told you that you don't really have career security. Like here's the thing guys, I'm not a negative person. My whole career has been built on positivity. I just have to get everybody woken up to the fact that it's actually getting worse and No 1's coming to save you now. I originally had pictures of politicians up here. They said it wasn't politically correct. So I had to take the pictures down and we put superman here. But imagine there were politicians here because there's a lot of them and I'm not gonna say which one is because it doesn't matter. Politics are a sideshow. Okay. They are. No one's coming to save us. If you are dependent on a president or a party to save you, you are doomed. So what's happening? Unfortunately more americans today are actually not in the game of building wealth. This is a chart like this are hard to sometimes explain, but I'm going to show you as best I can what's going on because how many of you have heard the rich are getting richer. Why is that happening? Here's why it's happening. The amount of americans that own equities Here. It is, it was 22%. It's the red line, is the red line going up. Do more americans own equities or do they own less significantly less? Like it's come down a lot right from 21% in 2001, 2 13% here in 2018. Now, if I were to show you another chart, I should have done this. The people who own equities, their network is going like this because the stock market has been on an absolute tear since the recession. If you've been in the stock market since the recession since 2007 2000 and 2009 March of 2009, the stock market is up today over 400% with reinvested dividends. So you've got to be in the game to build wealth. There's a whole bunch of people building wealth. This is the latest wealth survey As of 42 million millionaires. That's actually a lot right In this country. The numbers are like 15 million now. Um When I wrote the automatic the numbers have more than doubled since I wrote the book in 2004, how are they getting rich stocks and real estate? Um Technology has made it easier to invest. I'm going to share absolute er here in a few minutes that literally you can open up your phone and be investing in minutes with these apps your change. Um But you gotta know the rules to win the game. Here's some rules. You need to know how many of you have heard a good debt and bad debt. Okay so there really are two types of debt and I will say this good debt can make you rich provided you understand that there's a very limited amount of good debt. The only way you can get rich borrowing money is to buy an asset. So write that down. You can only make money by borrowing money to buy an asset that goes up in value. You can't make money borrowing money that buys something that goes down in value later. I'm gonna go through an example with cars because it's the most common thing people borrow money for. So you got another between good debt and bad debt. Bad debt keeps you poor. The tax laws are set up to favor the rich. They just are. But the good news is you can use those tax laws like even when I go back and we're gonna talk about home ownership today and there's so many tricks with real estate that you can buy real estate, make money and never paid taxes. You can buy a home, make a quarter million dollars, sell it, you're single not pay tax on it legally. You can buy a home. If you're married, if it goes up in value, half a million dollars, you could sell it not pay tax on it legally. You can do it over and over again. I have, You can do with investment properties, you can buy an investment property goes up in value, you can sell and buy another piece of property and if you do it correctly at 1031 exchange, you don't pay taxes. You can put money in retirement accounts. I'm gonna teach your retirement accounts today where if you're self employed, You can be putting over $50,000 a year away tax deductible, no taxes. You can even put up to $200,000 away you just gotta know the rules, rich people never stop learning super important thing for you to know rich people don't do it themselves. You show me somebody who's rich, I'll show you somebody who's getting help. They may be taking classes, reading books, but they're also hiring people to help them. You don't have to do everything yourself. You don't have to know everything. Rich people never stop learning. You want to like Chase does all these amazing segments with people and I was such a privilege today to be with him. The common denominator among people who do well, they stay curious escalator up whatever you make, you have to spend less than you make. Just write that down. You have to spend less than you make. It doesn't matter what you make. If you spend more than you make, you'll always be poor and it's like, I know this is so obvious, but it's true, you can't borrow money And pay 10 15, 2030% interest rates and build wealth. It's not possible because you can't get escalators going up, they're going to use a higher rate of return than that credit card taking you down. That credit card at 20 or 25 or 30% is taking you down those payday loans that can annualized out at 300% a year or even higher. Those places should be shut down. But that's their more payday locations. Check cashing locations than Mcdonald's and that is just a serious escalator down. Like if I could put you on a slide down, it would be that.