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How to Retire Early: The Latte Factor

Lesson 18 of 18

Why Your Dreams Matter

 

How to Retire Early: The Latte Factor

Lesson 18 of 18

Why Your Dreams Matter

 

Lesson Info

Why Your Dreams Matter

One lesson Zoe learns again in the lottery factor is that the whole point of money is to help free her toe, live her dreams. Same thing for you. So let's talk about those dreams for a second. What are some things that you think when you think about I want to go do this? What are examples of things you want to say for besides retirement? What do you think about travel? What else was that? Property. What? Into by? Well, see, very specific. I love that. What else? A k A kick decorating classes in Petersburg. So what would that cost? Okay. Great example. I'm so glad you just gave it because you've got a very specific dream. It costs $2000. You know what the dollar amount is? You know what it is? I would literally open an account up. I would label it on the account. In my mind. The cake decorating count ST Petersburg. I have a $2000 goal. I decide. When do I want that to happen by and I'd save daily for so I'd use one of those investment accounts I showed you before and I'd save daily for i...

t. and the question becomes okay. Great. So I'm gonna save daily for these dreams. Now, where I put the money where I put the money for these dreams and I'd use mutual funds, I'd save money automatically. I'd using account like a corns, which is done for you. And then the question becomes, How long is gonna take you to fund that account? And how much do you need? A guaranteed. Because how long you think it would take you to fund $2000? Can you grab Mike, please? Is it a real dream? Yeah, OK, it's one of them. So we have man you want to do in a year? Is it two years? I could do it within a year. Great. So we're going a money market account. You go use like Marcus as an example, and you just put it in a money market account to 1/4 percent. That's where it would go. And since it's not a super expensive dream, that's basically where you put the money. If you said to me, well, I want to go there for six months. I don't want to just take the glass. I want to become an expert Kate Decorating. There's a six month program, and it's to take 20 grand, and it's gonna take me three years to go. Then you would put it into bonds If you said, Well, I've got more than three years to get there, I want to take some risks and you put into stock funds or balance funds longer out in order to take risk, you have to go out longer on the time horizon. Don't be putting money into stocks that you need back in a year or two because eventually the market will go down and your money back is not a good time to get your money back does make sense. Okay, so the last thing I want to talk about is how to plan sabbatical. Zoe Daniels takes a sabbatical in the book. I want to give it all way, but she learns how to take this extended break the way. Is there anybody here who would like to take an extended break? I'm just curious. One to everybody. What is a way honest? How many of you would like to take a break? Um, seems to be something that more and more people raise their hand to you know what? We're all overworked. Let's be honest. Americans air really bad taking breaks. The average American takes five days of vacation time. Now, a year we're not using vacation times that we've earned most was only have two weeks, but we're not even taking two weeks in Europe. They take 6789 weeks happened and wanting to go to Europe. Heroes like people seem little bit happier. You know, there's a reason that people are shooting each other on these foreign countries. They're taking more time off, have less guns, too. But people are stressed out in America, we need more breaks. So the way you get a sabbatical and you pay for it and you create a sabbatical account. Now here's the thing about taking a sabbatical. Even if it's 567 years from now. It's a beautiful thing to say, for if you said you know what, man David's going to Florence, Italy for a year. I want to go Florence, Italy, for six weeks, you tell it could be 10 years from now. You open up in investment account and you start saving for that. You're gonna end up doing it at least having the option to do it right. But I can tell you this. If you don't save for, it's not happening. So I just say this. Your dreams matter the whole reason I wrote the law multiple. I wrote the locket factor to inspire especially young people, all millennials to realize you're richer than you think. But I want baby boomers can read this book to the books about more than money. It's not about giving up your coffee. It's actually about getting clear again on your dreams. What matters most? How do you use money to free yourself to go live your soul given dreams before I close and take questions? I want to give you a tool that I use to help me with clarity. I talked about it with thing we talked about earlier with Chase and very beginning. I have a tool that helps me focus on my dreams. Helps me get a lot done, helps me not listened all the noise. These tools here include my yes now list and then you show you my not now list. So most people have a to do list and how many of you by the way used to do this. Yeah, and fearless are super helpful. I created daily Tillis too. But I have Ah, yes. Now, list sits in front of me every day in my planner on my desk, where I write down the five things that are most important to me not for the day but for the year. How else would do this? Quarterly. So I start my year with These are my top five things for the year. Now. You could do this with dreams. Then I go down to what's my number one thing. So I created five. By the way, I may have 50 things. Then I nearer to five. Then I narrow it toe one. And every day I ask myself, Am I putting time and effort into the number One thing I can tell you that my top five, the number one thing for the last 24 months Well, it's not really joining us. This year has been the lot factor. My number one thing was get the logic factor launched out into the world to teach my goal, have a big on this one. I want to impact a 1,000,000,000 people, so I literally have this mission statement that my dream for the lottery factories to educate and empower one billion people with this message worldwide starting with you, we start with one person at a time. My dream and hope is that this will go out all over the world. Why I did create alive why I'm talking to you one person at a time. There's a lot of things coming at me. The work wise, you have this too. So what I know is in addition to a yes now list, I have to have what's called. Not now list. Now, sometimes I not know this could be much longer than this, but stuff gets thrown at me and I am relentlessly focused on the fact that if it's not in my top five, I may wanna work on it. But I can't right now because I can only do so much so to capture the stuff that I can't do, it goes on a not now list. Now what I wrote here is because great ideas come, but they don't all have to be used now. Write them down, don't lose them, respect them and realize their time may simply be later, but not now. It also means that when people come to me with opportunities don't have to be ruined. Say no, I can say it sounds like a great idea. Unfortunately, I have other things I'm focused on right now. So I appreciate you coming to me with this, but it has to go on my not now list, you know? So it may go Well, how does this apply to me If I'm a foot from my home state home Mom or stayed home? Dad, Warm retired. It applies to you no matter what you dio the number one thing people say. Oh, I'm so busy Busy has become like the new drug, you know, I mean people like I'm so busy. What are you happy being so busy like whenever somebody says, um so musical Is it fun when you say when you say I'm so busy Is it fun? Is it getting you to where you want to go? If I said you have 10 years left to live do you want to really do all these things? If I said you had three years left to live, how much stuff now goes on the not now. List Whole lot. Right. This can also apply socially. You know, it's people come here like Hey, you want to go to this? How do you want to go That? And you know, the formal, right? Fear of missing out or you don't want to be rude. Hey, do you wanna be on this board? Hey, do you want to be involved in charity project? Um you can get involved in so many things that then you have no life. I think the biggest thing missing in many people's lives is a life. Right. So my dream again with a lot of factors, is to free financially Said you can go figure out your God given talents, listen to your soul and have the life you really want. That's why I came here today. Come join being on the social pages. Come. So I just joined Instagram. I'm so far behind. But come join me on Instagram. Come join me on Facebook. Come join me on Twitter. And the last thing is, let me give you some homework because they wanted me to kind of give you a summary here at the end. But you guys have been such good note takers. Such good note takers. Here's my homework for you again if you haven't already done it. Text me. Text me at 9. 7865 Text me your e mail. I'm gonna send you the first re chapters allotted Factor book for free, go to a lot of factor dot com website download the worksheet to track your expenses or go to the one of those websites. Go to clarity money dot com. An example of a nap track where your money is going for next 30 days. If the idea of setting up a dream account excites you and I could see it does cause you kind of all perk up, go open up an investment account. A corns was the example I gave you. I told you, I'm an investor in that company. It's a great resource. Super simple place. Invest small amounts of money automatically go create emergency account. Make sure that you go home and go. How much my earning my checking account. If it zero or a 0.1% and you could move it over to an online account like Marcus, where you get 200 quarter percent. Then get your money to work for you. Even if it's small amounts. When you respect your money, you respect your time. One of the big things I was trying to share Teacher today with that over here. That timeline was that we all creator time for money when we goto work, were trading your time for money. That's something we're not doing other stuff with that time. So you earn a dollar, you've got to become financially selfish. Remember how much I want you to pay yourself first. What was it? One hour day of your income? So if I were gonna have more bullets here because they're not, I tell you your next your last most important homework assignment is to promise yourself that you will pay yourself first that you will become financially selfish. You may not be. Go from 01 hour day tomorrow, but you could go from 01 hour and a year, two years, three years. If you started at 1% savings, you just went up 1% every month for a year, which wouldn't notice by the end of the year you be saving 12% All right. So my dream for you, aside from having enjoyed all this time together, is that you believe me, you can take action on one of these things. Would I like to take action on all of them? Yes, but go home and agree that you're going to do one thing. All right. Can we agree to that? Yes. All right. Give yourself a round of applause. Yes, Thank you.

Class Description

AFTER THIS CLASS YOU’LL BE ABLE TO:

  • Create financial freedom starting with as little as $5 a day
  • Learn how to earn 10% rates of return of your money
  • Understand the automatic millionaire habit that changes everything
  • Retire early or transition early to a life you dream of
  • Understand the FIRE movement and how to apply it to your financial future
  • Know how to become rich faster, as a freelancer or a small business owner
  • Use the Automatic Millionaire pyramid system to double your money in 10 years or less
  • Know which companies, apps and investments today are making managing your money easier and cheaper

ABOUT DAVID'S CLASS:

What if you didn’t need to be rich to live rich? What if there were a way you could achieve financial independence and live your dreams now?

In less than five hours – The Latte Factor Class can help you take control over your money and your life. Whether you’re just starting out in business, an employee, or you’re in debt and you just want to live the life you’ve always dreamed of, “The Latte Factor” is a one day program that has inspired millions.

David Bach is the Author of The Latte Factor and the creator of The Latte Factor Method. He’s also a nine-time New York Times bestselling author of books including Start Late, Finish Rich and The Automatic Millionaire. In How to Retire Early: The Latte Factor, David Bach will teach you why you are richer than you think. He’ll help you see a future that puts you in control over your finances and back in the driver's seat of your dreams.

It’s never too late to start living your dreams; today is your starting point. Whether you are living paycheck to paycheck, or simply want to increase your net worth, this class is for you if you’re ready for a fresh outlook on life and money.

WHO THIS CLASS IS FOR:

  • Anyone who wants to stop living paycheck to paycheck
  • Freelancers
  • Small business owners
  • People who want to live their dream life

ABOUT YOUR INSTRUCTOR:

David Bach is one of America’s favorite financial experts and bestselling financial authors of our time. He has taught millions to live and finish rich through his seminars, live events, courses and books. He’s the author of 9 New York Times best sellers, with over 7 million books in print in over 19 languages - including Smart Women Finish Rich, Smart Couples Finish Rich, and The Automatic Millionaire. He’s a media favorite having made thousands of appearances the past twenty years, including on Oprah six times and the Today Show over 100 times. David is the co-founder of AE Wealth Management and Director of Investor Education. His latest book is The Latte Factor: Why You Don’t Need To Be Rich To Live Rich. David presents seminars for and delivers keynote addresses to the world’s leading financial service firms, Fortune 500 companies, universities, and national conferences.

Lessons

  1. Class Introduction

    You don’t need to work five side hustles for the next decades to achieve early retirement. You don’t need to live paycheck to paycheck for the rest of your life. Meet David Bach and learn how small amounts of money can change your life. David shares his personal finance story starting from age 7.

  2. My Start in Investing and Teaching

    What did David’s first “financial advisor” teach him? Why is it so critical that women in particular begin their retirement planning now? David shares his investment history what you’ll learn in his book, The Latte Factor: Why You Don’t Need To Be Rich To Live Rich is about.

  3. Financial Education - Know Better To Do Better

    In this lesson, David paints a picture of the dire necessity of financial education for Americans. Learn about the mindset necessary for a happy retirement, how companies force employees out of work in their 50s, what rich people now that poor people don’t and how credit card companies prey on consumers. David lays out exactly what you will learn in this class.

  4. Start Early, Start Today

    Early retirees don’t all start with six or seven digit annual incomes -- most started saving and investing early. David shares a comparison of how early planning can immensely impact your retirement savings.

  5. The Latte Factor: How It Works

    What exactly is the latte factor and how can you find yours? In this class, David breaks down the latte factor math and shows you how to save money by cutting out small non essential living expenses and developing a daily mindset geared toward retirement. He also shares his pick of online resources and apps that aid in financial planning and investing.

  6. Student Success Story

    Hear directly from Elizabeth, a member of David’s inside team regarding her financial planning journey over the past 18 months.

  7. FITE - Financial Independence to Transition Early

    Learn about the FIRE movement and David’s take on transitioning vs retiring. David reviews how to plan backwards from your desired retirement age, introduces the 50/20 formula and shows the effect of turbocharging your income stream.

  8. Common Investment Mistakes

    Don’t make these common investment mistakes that won’t yield extra income. David gives advice on buying a car.

  9. Becoming Rich on an Ordinary Income

    You don’t need that much money to become rich or build up a nest egg. David shares research from Fidelity Investments that shows the concrete steps to take to become a millionaire through 401k investments.

  10. How Much do You Need to Retire

    How much should you save and invest or, as David says, pay yourself? See what you should be saving at 30, 35, 40, 45, etc.

  11. Retirement Plans & Where to start

    David orients you to the different types of retirement accounts available, highlighting their benefits depending on your needs. Learn the difference between a traditional vs. Roth IRA, spousal IRA, SEP IRA, 401k and solo 401k plan. What is recommended if you’re self-employed? What if you have employees? David answers your questions and points to brokerages, roboadvisors and apps where you can start.

  12. How to Earn 10%

    There’s a lot of talk about earning a 10% return on your investments -- how do you actually do it? David teaches you the rule of 72, a quick way to calculate how long it takes to double your money when calculations and retirement calculators aren’t at hand. David takes audience questions, addressing financial planning in relationships, investing while in debt, and his advice for self-employment.

  13. Investment Pyramid

    The opportunities for investment can seem overwhelming and intimidating; David presents an “investment pyramid”, displaying all investment options from low to high risk. Learn what makes a diversified portfolio and what David himself invests in. Lastly, David cautions against the high-risk investment zone and which investments to stay away from.

  14. Reasons Most Investments Fail

    In this lesson, David shares the top 4 reasons most investors fail; learn what not to do. See a historical representation of an investment from 1926 through today and learn why the stock market will always favor a “boring” investor.

  15. 5 Things to do During Market Correction

    Market corrections are normal and happen throughout history. David advises on what to do on your own or with your financial planner or advisor.

  16. Retirement Accounts and Investments

    What are target dated mutual funds, asset allocation funds, balanced funds and simplified ETF solutions? Why are they ideal investments? Which Vanguard fund does David recommend? David gives you homework in this class: crucial questions to ask yourself and actions regarding your 401k.

  17. Renting vs Home Ownership

    Why is real estate one of the best investments you can make in your future? David shares benefits and advice regarding mortgages, payment plans, bubble-proofing your real estate and how to become an automatic millionaire homeowner.

  18. Why Your Dreams Matter

    David closes, returning to the point of financial freedom: to live your dreams. He gives advice on different investments to consider depending on your time frame and how to plan a sabbatical. He ends the class with your final coursework: finding your latte factor and putting steps into place to start paying yourself first.

Reviews

Ling Fan
 

Great class! Concise and powerful! Wish I knew this 10 years ago.

Kennie Johnson
 

Very helpful and inspiring

Carlos Figueiredo
 

I thoroughly enjoyed the course love it!