Today's post was part 2 of our series on how to build wealth with the money you earn from real estate (or whatever industry you're in). We discuss the 10 principle wealthy people live by which is what makes them wealthy!
Below you can either listen to the podcast or watch the full video.
Here is the podcast:
1. Must pay yourself first
1. Money loves to multiply. Money likes to go make little money babies.
2. Constantly seek to increase your savings rate
1. Earn more, spend less
2. Watch the flow of money. Stop the flow of money out of your pocket to others
3. No debt for liabilities
1. Every dollar is an employee. If you spend that dollar, that money can’t work for you.
4. Investing in education
1. Financial education, emotional education,
5. Take ownership of EVERYTHING 6. Actively seeking out problems to solve
1. Vs. avoid them.
2. Solve your challenges then solve others
7. Seek out leverage
1. Others people time
2. Leveraging the money
1. Real estate - For 20% of the properties value you can take control of the benefits of ALL the property
8. Wealthy sever the dollar for hour connection
1. An employee has worst tax breaks, business owners have the best
2. When your income is based on the results you create the ceiling of your earnings disappears
3. Cash flow quadrant - Robert Kiyosaki - https://amzn.to/31iExpX
9. Clear goals or clear vision of what you are bringing into the future
1. If you don’t have a clear goal, you end up being apart of someone else’s vision
1. Jeff Bezos, amazon
2. What do I want out of this life? Where do I want it to go
10. Take calculated risks 1. Most think it’s risky to be an entrepreneur
1. Story of a friend's father. Fired 2 years before retirement. Was making most he had ever made, brought in college student. More risky to leave your financial future in the hands of a corporation.
2. Calculated risk to learn how does business work, how does wealth work, how do you sell things, build traffic online, how to pay taxes, etc…
3. Investing - Investing in crypto assets, 1%. Never bet the farm. Get a little piece.
4. Building this training, coaching platform is a calculated risk for me.
1. Not let me quit my job and start a whole new business. Do you have enough money from the new business? Stop going to happy hour, stop binge-watching Netflix, etc..
Kyle Handy 0:00
I'm in a little different spot as you guys can tell I am over here at the lookout coffee one of my favorite little coffee spots by by my house but it's kind of bittersweet because the reason I'm here is because we've got a showing on our house this morning so I'm kicked out of my home office but because as you guys might have seen over the weekend, we put our house up for sale so we're moving a little bit further north but 1520 minutes or so. And so yeah, I'm out here in the the coffee spot, which will be be here for probably the next little bit doing some work. So I'm excited though guys to come to you today. Hopefully I'm not going to talk too loud. Because if people are on me as y'all can see, it's I don't want to like blast them out with yelling like I normally might be doing on this call. But hopefully you can hear me give me a thumbs up if you can hear me okay talking like this volume. Okay, perfect. So today we're going to be talking about the 10 habits that wealthy people do for their money. So you know, this is kind of part two. Part One was last week. If you missed That you can get it on my Patreon page patreon.com slash Kyle Handy. And in basically, it was an amazing call. I think we had a lot of people reached out afterwards saying they loved it a lot of questions afterwards. And literally we like ran right up to like, you know, 958. So there wasn't really any time for QA. And we didn't even get to the second part. So today we're going to be getting into the second part. Hopefully it'll end a little bit earlier today. So that way we can get into some questions and answers. And, but, but yeah, so but if you're just seeing this for the first time, and you're like, wondering what this is all about, typically, this is a real estate sale, real estate sales call. And we talk all about you know, how to improve your sales. But these last two weeks, we're going into kind of what to do once you've been selling homes and you've got commissions, and how do you put that money to work in the right way. So I've been a real estate agent for 11 years and I really, you know, for the first I'd say 789 years of that, I really I hadn't put too much mind and thought into my commissions, they just got spent along the way. And I didn't have a whole lot to show for it, you know, after it was all said and done. And so it wasn't until I started really kind of looking into investing in real estate. And now just, you know, kind of their passive income and other residual income streams and things of that nature, that really, my wealth has started to really grow. And it's pretty exciting. It's pretty, you know, it's almost like you know, when you start building real estate business for the first time, and you start to have success and some traction, you know, getting more sales. And that's pretty exciting. Now, it's like to see that happening on the money side of things and seeing your money grow and your money accumulates. That's a pretty exciting thing as well. So today, we're going to talk about the 10 things that I think that are important to know about money and about your mindset and things like that, on how to get your money to start to grow on its own and to be you know, have that wealth start accumulating. So, let me go out grab my notes real quick here and we are streaming live on Facebook right now as well. So if you guys have questions, definitely put them in the chat or the comments on Facebook and we will get to them at the end of the call. And then if you're live with you right now, feel free to stick around and then you know at the end of it, you know, you can just ask your question, you know, open up your mic, and feel free to ask it that way too. So cool. Well guys, we are going to get started here. It looks like we got already quite a bit of people jumping on the Facebook, we got a lot of people here on zoom. So let's go ahead and get started. Alright, so this first one here, this is kind of a carryover from our last call that we did last week, but I'm just going to reiterate it because I think it was so important and maybe if you missed the first call, but it's you must pay yourself first wealthy pay people pay themselves first, right, we talked all about this on the last one. We've talked about setting up you know, your zero based budgeting system. We gave a tool called you need a budget calm. It's like 30 day free trial and $7 A month after that. super powerful, I'm not going to go into the details again.
Kyle Handy 4:06
But if you don't have a system, that your money that you're putting your money to work in, you know, it's not going to work. It's like, you know, doing a real estate business without having a plan, right? Without business planning, you need to have a business plan for your money. And you need a budget is the easiest way that I've found that you can set that up pretty carefree and easily. I had used a system similar to this I didn't actually use you need a budget. But I had, you know, basically a system just like this that I had to make myself create myself. I didn't know this existed until a few weeks back. And but my system, you know, it basically did all the same stuff was just a lot more work. So you know, I definitely would recommend you look into that. And it's called a zero based budgeting system. And the reason why is because you are putting every dollar that you earn to work in some form or fashion. That's what you know, that zero based budgeting system is and basically when we say you need to pay yourself first, we're Talking about, you know, putting you know your money into some kind of savings plan some you know not you need to pay yourself first. So you can go buy that Apple Watch, it's you need to pay yourself first to, you know, in the sense that you're going to save money because here's the thing, a lot of people they say, Well, you know, I spend all my money every month, like I don't have any leftover to save at all. And you know, and if you're already in that boat, if you put 5% aside or 10% side, you're still going to be in that same boat, like I promise you, right? But you'll figure out a way, but you got to start somewhere and put some percentage of your income towards paying yourself right paying yourself for the future. But to get into some kind of savings plan long term. So that's the first one out of our 10 paying yourself first and and start there right and whatever that means it's 5% to 5%. If you're already paying yourself it's 10%. pay yourself more and that's where this next one part comes in. But constantly number two is constantly seek to increase your savings rate. Okay, so if you're saving 5% now save 10% you're saving 10% now save 20% right? At this point, you know, like, where I'm trying to get to is I'm trying to save 50% of my of my income, right? I'm pretty close, you know, so like every month it and it's it's hard as real estate agents, I mean, it's not like we're on a fixed you know income where it comes in the same every single month so it does make this entire thing a little bit more challenging you have to be that much more disciplined if you're a real estate agent and you're watching this but at this point, I've just come to the terms with like, hey, if I've got a you know, $6,000 commission 3000 goes into my savings 3000 goes into my accounts that you know, I got factored out for my different budgeting areas, you know, if I've got to pay my bills, food, living expenses, all that kind of stuff. And so you know, but that's how it basically goes if I got a 10,000 commission 5000 goes towards that 5000 goes towards the other one. That's how I've done it. If you're you know, W two employee or you've got just, you know, a set amount of income coming in Should be a little bit easier to set it up just you know, set up a recurring payment that always goes out, as soon as you get that money in, so you're not tempted to use it. So number two, constantly seek to increase your savings rate. And you can basically do this two ways, right? You can either earn more money, or you can spend less, right, like, that's the only two ways that you can increase your savings rate. And so, you know, figure out what that means to you. If you're, you know, if
Kyle Handy 7:32
the longer than your money is or whatever, you know, then maybe it's like, hey, I need to go out and get a second job or I gotta earn more money. You know that that might be something you have to figure out if you're going to increase that savings rate. Or again, you got to spend less money. It's funny because like since I've taken this this little like, practice of the last month like coming up with these these lessons, researching it, like I have seen like six nights spending go down significantly. We can all do it like Even as thrifty as you think that you are, like, everybody can spend less money like, absolutely you can. My Amazon I like cut myself off from Amazon because that was a big, big deal for me, you know, spending on Amazon so easy and things that show up at my door almost every single day. And since that point in time, I think I bought one thing on Amazon in the last like three weeks said, pretty good for me, pretty good for me. So everybody can do and I definitely can can say that. You gotta watch the flow of money. So many of us we get so caught up, this is still number two, we haven't moved on to number three. You gotta watch your flow of money. If it's not something you're monitoring, like actively, you know, maybe not daily, every few days, but at least every week, right? You got to be monitoring that flow money because if you don't monitor that flow of money, it's going to flow out of your pocket into somebody else's that's just how it is. We said last time on the call last week that basically wealth flow, it goes to those who are disciplined that are most disciplined with money you know, That's where the money goes, right? So if you're not disciplined with your money, if you're not looking at it every single, you know, day or every single week, it's going to flow to those who are most disciplined with the money. That's just how money works, guys. It's like electricity, right? Like it's just a current. And if you're not monitoring it, if you don't have a system in place to keep that, that that wealth, you know, in your pocket, it's going to flow to somebody else who does like that is just what I've seen over time, right? All
Kyle Handy 9:30
right, number three. Moving on to number three. We've got no debt for liabilities. Okay, no debt for liabilities. Basically, what that means is, there can be an argument made to having debt for an asset, right? And an asset is something that makes you money. A liability is something that loses value over time and you lose money on right so like if you're going and buying a rental, you know, property or something. Definitely an argument can be said for why it would be important you could go get a mortgage And leverage debt to get that asset. You know, I don't think that there's anybody that would would, you know, look down upon that. But certainly you would have to say that, you know, taking out debt for things like a car for things like, you know, an Apple Watch, you know, on a credit card, all that stuff, you know, you gotta you gotta get to zero arm. I mean, like, I would say you got a limited but I mean, ultimately you don't want to be taken out of debt for things that don't make you money. You've got to get your mind wrapped around. Like, if it's a liability if I'm not making money on it, I cannot spend it. You know, with that. We'd said last time on the last call, that basically when you take things out on credit cards or anything like that, you were literally stealing money from your future self. You know, yes, it might feel good to get that thing, whatever it is right now. But you are going to be paying a price for that in the long term, right. One of the things that I'll say that Basically, you know, I thought about when it comes comes to this, I was reading the book, we talked about it last call simple path to wealth. And something that that he the author mentioned JL Collins, he talked about how, you know, we see the cost of something in today's dollars, right? Like if I go out and I buy a, you know, $30,000 car, you know, we see it as like, okay, I spent $30,000 on the car, right? We all know that that car is going to depreciate over the time that we own it. And then what ends up happening is, you know, we don't take out a loan to go buy because the interest rates are so low on it. So we have $30,000 cars $33,000 car, you know, by the time we're not, we don't own it anymore. Well, the other thing you have to factor in is yes, we all need a vehicle. I'm not saying don't go buy a car, but the if you could have gotten something cheaper, that money in the middle there, say if you could have driven something around for 1015 you know, thousand bucks or whatever, less than that money there. That's in the middle that $20,000 is worth more than $20,000 I mean, you got to think of it, if you invested that money $20,000 and you earned, we talked about how, you know, just putting it in even just a simple index fund, right, like the vanguard fund, over 40 years is earned over 11.9%. If you put that $20,000 to work, that 20,000, or that car, that's 30,000. And then now 33,000 is actually costing you a lot more in the long term. I mean, you're probably talking, you know, 50 100,000, depending on you know, those numbers out, right, and if you just get in the stream of taking out debt constantly and you're never putting away money, I mean, that's costing you your wealth, ultimately at the end of the day, so. So anyway, so that's one of the important things to talk about there. As far as no debt for liabilities. If you've got debt for liabilities again, get on the you need a budget system to try and eliminate that debt as quickly as possible. We talked about the snowball method, we talked about the avalanche method of getting rid of debt last call. So that'd be another good thing to go back and read up on. And then finally, or Finally, we get to number four. And we're going to be talking about investing in education. Right? That's so important. I think that, you know, part of the, you need a budget system, we talked about a percentage that you could put in there, maybe it's 5%, maybe it's 10%. In education, right, that could be financial education. Education could be, you know, business education, anything because I mean, at the end of the day, you know, like, we're all getting paid, you know, for what we are contributing what we're, like, you know, what we understand and know, and so the more that you can know, you know, the better off you're going to be or in the sense like, you know, you are going to be looking at it and the sense that you're going to get paid well by the more that, you know, in financial, you know, education so it's like, you know, definitely invest In your education, I spend at least I probably spent probably closer to 15 to 20% of my money in Well, you know, I mean that that includes, like go into, you know, conferences, that includes, you know, training courses, that includes books and audio books and videos and all sorts of things that I you know, subscribe to constantly seeking out knowledge and education. And so you got to constantly be reinvesting in yourself.
Kyle Handy 14:27
And then number five, put down here is take ownership of everything, right? The sooner that you take ownership of everything, and you don't, you know, say, Oh, you know, we're always me, you know, this happened to me. You take ownership and control of it, the sooner that you can get on the track to, you know, getting better on your wealth, getting better, you know, time management, all sorts of different things that I think come into play when you take ownership of everything. And so, you know, basically, we talked about taking ownership, you know, a lot of people say, Well, you know, my boss You know, is this or like I can't do at the end of the day like you pick that job, right? Like take ownership of it or like, you know, if something happens to you, I'm sure you can kind of lead it back to like something you did that got you there and the sooner you can say, you know what, you're right. I did this myself and you move on and get past it. And you figure out what what the solution is for and how you can be a part of that solution versus waiting on somebody else, the better you're going to be, right like that's with anything with any of your business that you're in career, your personal stuff, you know, lifestyle, but finances certainly right and you got to take ownership, absolutely. of your finances. All right. So number six, wealthy people actively seek out problems to solve. Okay, so this goes back to investing in education, at least for me is that like, you know, I am actively trying to seek out problems that I can solve because here's the thing like we get paid and this is a I don't want to jump ahead of the gun there. But like, you know, when, when you can solve other people's problems, you sever the dollar per hour kind of solution. So like, if you're working a job and you're not getting paid hourly, or anything like that, like when you start to solve people's problems, right, you can move up to be a consultants, you can, you know, start running your own business, like all sorts of things happen when you start to actually seek out problems of other people, and of yourself, and you try to solve those problems, right? If you just sit back and like, you know, Netflix binge, and you, you know, do all this stuff to kind of like pass the time, because you're not working your job, right, like, then, you know, that's hard to start to build, well, you're always going to be kind of stuck in that dollar per hour, you know, area. So you gotta kind of have that mindset to actively seek out problems versus avoiding them, right. And so you want to solve your challenges. I put a note here, so solve your challenges, and then solve other people's challenges. I think that's kind of hierarchy. If you look at most wealthy people, right, like they've obviously, you know, trying to get their stuff under control. And once they kind of get their stuff under control, they can go out there and start, you know, helping other people. And so maybe you're in the boat right now you just got to get your stuff under control will do that, right, solve the problem for yourself, and then you can go out and help other people. But that's kind of two quick steps right there of how you can start to really be more valuable and start to you know, contribute and get one wealth to come your way is as you can start to solve other people's problems that'll just naturally happened. So number seven, got disease seeking out leverage, right? So you know, when you start to want to build wealth, you're going to want to seek out leverage in there's kind of two ways that I look at it, leveraging you know, people, right like other people and bring them into your business. You know, utilizing you know, your shared mines using, utilizing your shared time. Whatever That means, right, you want to leverage other people, and you need to start also leveraging your money. Okay? So that's where we can put our money to work and, and so, you know, wealthy people seek out leverage all over the place because we're only one person, right? Like, when I started, you know, bringing on, you know, virtual assistant, I have, you know, showing assistance, I've got a transaction manager for my real estate business. So even though I'm only one person, you know, and I can maybe say I say I work 40 hours a week, I've got probably about 100 hours a week that are contributing into my business right
Kyle Handy 18:35
now, just, you know, all team because of the transact a manager puts in, and you know, the hours that my showing assistant puts in, and all sorts of things so like, you can get more hours per week without having to, you know, do it yourself. That's kind of step two. So if you, you know, obviously, if you're in step one, where it's like, Hey, you got more time than money, then you need to, you know, work hard, right like that. The only thing you can really do at that point is work hard, and get to that point where you can start leveraging others People get back some of your time and start to build your business larger and larger. And same thing for money. You know, leveraging money, you can look at it, like, you know, you're putting money into a wealth account or something like, you know, leverage could be well, you know, getting rental real estate, right? And you're literally are leveraging money in the sense that like you put 20% down on a property, and you get the full benefit of owning that property as if you had 100%, right? Like, you can put 20% down, get a rental property, and now you can rent that property out. And then from it, that's really like leveraging your money right there. Right? You know, you don't have to put 100% down to get the rent front. If you're putting 20% in, you're getting 100% of the benefit of that property right away. Okay. So those are the ways you need to think about leverage. Number eight, and this is we got into this a little earlier, I was trying not to talk about it too much, but wealthy people sever the dollar per hour connection. Right. So like, again, you've got to get in and out of the mindset of like, just work Working, you know, you know, dollars for hours. If you look at it, you know, employees, they've got the worst tax breaks out there business owners have all the best tax breaks. You know, I learned this long time ago when I started up my own independent brokerage in 2013. I mean, you know, it's crazy. You know, I was I was w two before that I was doing in real estate from 2008 to 2013. I sold, you know, new homes, and I was still selling homes, I was making a lot of money, you know, to the height of it, I was probably making, you know, 180 grand or something like that a year and I saw how much money when you were making that much. It goes out in your W two. I mean, I think taxes were, you know, 50 $60,000 a year it was crazy. And then I go into real estate and I'm a business owner now making, you know, close to the same or more money, and I'm paying less in taxes than I was when I was w two. And so you know, you will start to realize that having your own business can certainly certainly help you on taxes. And so but when your income is based on You know, on kind of like that dollar per hour, you're at a ceiling, right? Like, there's a max that somebody's going to be willing to pay you, if you're working in a call center, and you're making, you know, $15 an hour, like, you can quit and go work at another call center, but maybe you're gonna make $18 an hour, right? Like, but when you tie in your value to helping other people and solving other people's problems, you know, the ceiling is endless, like you can, you know, the sky is the limit at that point. And so, you got to kind of start thinking of like, how do I help other people, and even I'm not saying go out there and quit your job. But like, you know, think of it on the side, like literally, I still so I almost look at it, like selling real estate is my job, right? It's kind of like, it's not an hourly job, but at the end of the day, you know, kind of is like, you know, you know, I might, you know, make more money per hour if I can, you know, sell more homes. But at the end of the day, what I'm creating here with creating content and stuff like that, which is something anybody can do as kind of a side gig and putting content out there. This is the Is that it's scaling right like every week I put something out like this it's starting to build and grow I start seeing you know different sources of income coming in from it and so like you know, build on the side do something else get a side hustle that you know you can start to accumulate wealth and provide value for other people in addition to whatever it is that you might doing already so So anyways, alright, so number let's see number nine here. Oh, you know what, before I go on a good book on this if you haven't read it already, I know a lot of people like book
Kyle Handy 22:33
promotions here is the cashflow quadrant by Robert Kiyosaki. If you haven't read Robert Kiyosaki his book cashflow quadrant, absolutely, you need to read that book. It's a really, really good book that kind of talks all about, you know, business owners, self employed employee, all that kind of stuff, having a company so read that book, Robert Kiyosaki cashflow quadrant, all right, number nine, and we're doing pretty good here. I'm trying get this done by about 930. So we have time for call or for questions and answers. So all right, number nine, you gotta have clear goals or a clear vision of what your future looks like. A lot of us like, you know, you might have a business plan, you know, for your business, but I'm talking a separate plan for your financial future, right? Like, do you know what your net worth is today? Do you know what you want your net worth to be? Five years from now? 10 years from now? Like, have you spelled that out? Do you have spreadsheets? Do you have something written down? That shows it's not just a dream or a goal, right? You need to have a plan just like you do with any type of a business. You need to have a plan for your financial wealth. Okay, so know what your wealth is today. Know what you want your wealth to be in the future. And then you can start to reverse engineer it and figure it out. Right. Like, if I know that, you know, I want to You know, had $10 million in five years, and I've got $1 million today, right? I gotta figure out how do I get to that? 10? Like, what? How much do I need to add in every single year? And what percentage of interest Do I need to accumulate on that to be able to get to that wealth, right? And so many people don't actually take that step of thinking about that in their life, right? Or maybe your goal is just to get out of debt. Right? You're starting with nothing right now. And you're like, I need to get, you know, out of debt. You know, what's that plan look like? What is that a one year plan? Is that a three year plan? What do you need to do to do that? And once you start to reverse engineer it, and set up that plan for yourself, it becomes a lot easier. So again, clear goals, clear vision of what you're bringing to the future. I think of when I think of like a vision, I think of Jeff Bezos right from Amazon, right? Like when he was starting up that company, he had a super clear vision. All right. There's a big saying that says Like, if you don't have a vision for yourself, you'll become part of somebody else's vision. Again, so true, right? And it's kind of goes back to that part about your money, and where it flows to those who are most diligent with it, right? So like, if you, you know, don't have a vision for your money, it will go to somebody who does, right, you've got to have a vision for your wealth and for your money into the future. So, really, really cool. Write them down, have them looking at you every single day. Right? I think it's very, very important. And then number 10, here. Listen, guys, and we'll, we'll, we'll go ahead and wrap it up and get to q&a is take calculated risks, okay, wealthy people take calculated risks. They don't bet the farm right, like, you know, you go out there, you know, and you You see, you know, crypto currencies doing good you go out there and you spend like, you know, 20 grand and that's, you know, 20% of your entire net worth or something on it. And then it goes down to $3,000. Like that is not a calculated risk right, calculated risk. Might be putting 1% of your net worth into something that you think might work, okay? Or, you know, also a calculated risk might be like with your time or your like what you're doing right? calculator. This is like, I'm not I'm gonna quit my job today. And, you know, go do this, you know, entrepreneur thing like Kyle is talking about like that not a calculated risk, either calculated risk is, Hey, I'm going to stop watching Netflix, I'm gonna stop going out on the weekends in you know, doing all these crazy things and I'm going to I'm going to do a side hustler, I'm gonna put 10 hours a week extra into this side thing to try and you know, make this thing happen, right, like, that's a calculated risk.
Kyle Handy 26:37
And so, you know, a lot of people and here's the other thing that I talked about, that I wanted to talk about as far as being an entrepreneur, you know, a lot of people think being an entrepreneur is, you know, risky, right? And it is right. It's not like a guaranteed w two source of income. But at the end of the day, I almost think being a W two employee is almost more risky than learning how to be an entrepreneur and be able to be in business for yourself. And the reason why I think that actually heard a story the other day of a friend of mine, he's, you know, basically his father had worked for the same company for 25 or 30 years, something like that. And two years before his retirement, when he would receive his, you know, full pension, his full retirement benefits, the company fired them, they let him lay them off, right. And so, you know, basically, he was making the most of you ever made, he was making, you know, well over six figures, but they brought in a college student to replace his job, right? You know, they could pay that college student a lot less, and they wouldn't have to pay out his full, you know, retirement benefits and they let them off, they laid off a lot of employees. He wasn't the only one, you know, they're left you know, 10s of thousands of employees as part of a big cut. So, I mean, if you think about that, you know, like, what's more risky right to leave your financial future in the hands of like a corporation, a company, or to take control and kind of like put this in your in your own hands, right. So to me, I almost think that you know, Being an entrepreneur is almost a safer route. If you look at the long term things, you know, long term scheme of things, you know, it's actually more safe, in my opinion, to learn all this stuff to take the time, invested in yourself, get the skills, get the knowledge that it takes to be an entrepreneur, that way, no matter what happens, you can figure it out, right? If you're leaving your financial future in the hands of somebody else, you know, you're leading a lot of risk there on the table. So let's see. Yeah, I think that's that. That's pretty much all my notes here. So that was our 10 things. So we'll go ahead and get into the question answers. Perfect. 930 this was great. What did y'all think about that? Guys? Give me some feedback. Let me know. You know your thoughts here. I've got a couple questions in the chat here. See, started cutting back last month. Good job, Norma. Love it. About 300 bucks, perfect. Guys, it's small chunks. It's you know, the biggest thing you can do right now is just take ownership of it and start to really seek it out. And like I understand it and know what your what's your finances look like, right? Like, if you're thinking to myself like oh man, you know, like I've already tried saving I don't have any more money, you know, get your finances under control just by like looking at them that's the first step right? Like get them you know get a budget going like start to know where your money is going. That's as valuable as then you know starting to save money or or spending less, you know, so that's a big big part of the equation. So good job Norma. What do we got here? Curtis? What did I miss there? Man? Did you take some good notes for me? Right see I'm reading this Facebook here you've tax evasion owning your business by showing higher expenses but be careful it hurts for loans. Absolutely. Adam Hey man, I know all about that. We are buying a house right now he had luckily i mean i i know enough to know that I didn't want to write everything off because this would probably be coming into play. But yeah, so so we are. We're qualifying by the skin of our teeth. So so to speak, but it works out but yeah, yeah, absolutely right guys, I mean you right off everything it will hurt you if you're ever going to go get alone. But again, if you're not getting a whole lot of loans out there because we're not talking about going out there and getting credit cards and getting car loans, right, like that's the stuff you don't want to do anyways. And if you're not buying a house anytime soon, then really, you know, I would say try and take full advantage and then like I've done here in just this last, you know, two years, I knew that we'd potentially be buying a new home soon. So these last two years when we filed our taxes we did leave some income on there. We do show good stuff so cool, David powerful info. Perfect. Cherry. Good morning to you. Good college, Jerome. Love it guys, y'all thanks for for chiming in guys. So we've got 11 people here on Facebook Live we got How many people here 27 people on the zoom call. So I want to get some questions guys. Let's What's here? What do you guys have? cocoa I see you on the call what's going on cocoa Alright, since I kept I work to pay off liability that way that is so smart Tracy. I love it so what she said is she's so she's kept meaning that typically she would be 20% of her real estate commissions into the brokerage so now all she does because she's used to paying that 20% into the brokerage on all of her commissions when you cap just take that same 20% you're used to paying it already and
Kyle Handy 31:31
pay off debt with it right that's that's a huge I love that Tracy That's awesome. Super, super smart. Cool, guys. What's up Tom, I see you. Good to see on the call. Alright guys, well cool. What else we got? Ian, I know you're a money man. I miss anything that you think was worthwhile that needs to be said. All right. Thanks for sharing that link room. You need a budget calm. Appreciate that.
Unknown Speaker 32:00
Kyle Handy 32:02
Is everybody like muted or something? Or what's the deal here? I don't really see if I can unmute.
Unknown Speaker 32:12
Kyle Handy 32:18
Perfect. Does anybody there? Talk to me talk to me, I can't hear anyone. I don't know.
Unknown Speaker 32:22
We're here, man. They're not all shouting at the same time. I think everybody's digesting. Everybody's digesting the big list, the top 10 tips. You know, top 10 habits of wealthy individuals. So I just dropped them there in the chat. Kyle, I'll tell you one man, that really resonated with me. There's a couple, but the one that for me personally, in my especially my life is a realtor, but just at other points in my life, you know, like you said, We don't always make the same amount of money every month. And as an entrepreneur, that's almost always 100% true, unless you're following number one and paying yourself first a salary right? But I bet a lot of us out of our real estate business. Don't pay yourself a salary, per se, we just grab money when we need it. And we spend money when we want to. And that's generally how it goes. So that one, I think, is really important. Because when I went through the you need a budget tool. That's one of the questions that asks you, like, do you basically make the same amount of money every month around the same times? Or do you have, you know, different variable incomes? So like, that's a very interesting concept in and of itself. You know, just imagine, if you were paying yourself out of your real estate commissions and any other source of income, you know, a fixed amount, a certain period, like you'd kind of be better at budgeting all around. But the one for me that was very, very real was the having clear goals and a clear vision of your financial future. So I'll share a little story. I was talking to this. I guess I was talking to a, I don't know it was like a it was a salesperson for this coaching program. One time I was thinking of taking this coaching program, checking it out. It was like, some advice online. And it was them, you know, coaching you up to learn how to, you know, build some kind of online program or whatever. And I was like, I'm going to check this out. So I, I took the calls like a one hour introductory sales call. And one of the first things that I did was start asking me about my income, you know, where do you make How do you make money? What are your sources of money? How much money do you make, you know, monthly, annually? Is it the same every month? He was just like really digging in? And he's like, and does that amount of money that you make, on average, cover all your bills? And I was like, yeah, that was my answer, right? Yeah, it does on average, cover all your bills. He's like, okay, now what amount of money would you make would you need to make to really live the life you want? You know, like, because I was he had me described my perfect life. He talked about my kids, my family, the travel, things I want to do. And he's like, you know, now put a name to that call that complete freedom, call that financial freedom, you know, what would you need to make every month to get financially free? And I said a number and it was different than the actual number I had said I was making right and he's like, let me tell you a weird thing about Money Curtis, he's like, almost always in life, you will make as much money as you need to, as you absolutely believe you need to like, if you think you have to have 10 grand every month to squeak by, you're just going to find a way to make 10 grand almost every month, like maybe you'll accidentally make seven or eight one month, you'll probably make 12 or 13 another month, but almost every single month, because your vision of financial, you know, comfort, I guess is to make as much as you absolutely need. He's like, but when you change your mindset and you change your vision to the bare minimum, the absolute essential amount of money is that freedom number like what it looks like to actually be completely comfortable and free. He's like, then you'll make that he's like you might not make it immediately might not change tomorrow, but I bet eventually you'll get there. And I look back and I've been tracking this because I've been kind of fixated on the story now for about eight months. I look back and the number that I told him I needed to make every month bare minimum and The number that I needed for like my freedom number, you know, that clear vision and goal number, you know, they were almost 100% apart, right? I almost had to double my monthly income to get to that freedom number. And after like seven or eight months of just that being the clear goal and the clear vision, we're almost there. Like, I think in the next month or two will probably be the first time we hit that number, like ever, were maybe in a really long time. And so I don't know, I just thought that that really stuck with me because a lot of us if you're doing some of these other things, but you still don't have a clear goal, a clear vision of where you want to go and when you want to be there by and all that stuff. You'll probably just keep going at the pace you're going at. Yep,
Kyle Handy 36:41
absolutely. No, that's that's awesome. And then the other thing too, you know, that I heard you kind of talk about we really say that talk about it on this call is you made a commitment, right? Like you are committed. There's something different like all of you guys watching this call right now you might be interested, right like you might be interested in saving more money. You might be interested in building wealth for yourself? But are you really committed to it right? Like, and when you're committed to it, you do things that you're not doing right now, it's not like, well, it'd be nice if, you know, if I, if I paid off all my debt, it would be nice if I started make more money. Like that's, that's being interested in it. But when you're committed, it's like, I'm going to do everything possible. I'm not going to stop until I've done this, right. Like, that's the difference between being interested in something and being committed. And when you had that realization, Curtis, I mean, I think you took, you know, the probe, instead of being interested, you became committed, right, like you wrote it down, like you started to understand it, you started to like, put things in place to make sure that you know, whatever that gap was, you were going to bridge that gap. And so, yeah, that's huge. I love it. I love it. One of the things that I want to talk about to when we talk about you know, that picture of financial freedom and maybe starting to help you kind of plan for your wealth. This was a This was from the book The simple path to wealth also, is they talked about so they mentioned the Trinity study, which we talked talked about last week, and how basically what the Trinity study says is that you can pull 4% out of your retirement account, you know, each year once you're in retirement without really having to worry about necessarily like, outlasting your money, so to speak, right? Because if it's an account at that point, it's probably the more conservative account, then, you know, investing in just in stocks, like what we talked about here. So maybe it's maybe it's not like 11.9%, like what they talked about if you just put it in the vanguard index fund, but maybe you got it in bonds, plus, you got to account for inflation, right, two 3% for inflation, but you should still be able to hold 4% out per year. And BB. Okay. So if you think about that, this was like a really key thing in my mind was he said, Okay, well, if that's the case, whatever you need to live on comfortably, take that amount and multiply it by 25. Right? Because if you multiply it by 25, that's what you're going to need to save up to earn that same amount of money every year without running out of money, right? So if I want to live on 100 grand a year, right? You know, in retirement, I want 100 grand a year in today's money, because again, this is already accounting for inflation. So if I want 100 grand, in today's money, I'm going to multiply it by 25. You know, that's two and a half million dollars that I would need today, right? So like, maybe that's going to be different 30 years from now, right? Like, you're going to say about more than that. But in today's money, I would need two and a half million dollars, right to be able to take 4% out a year and still make $100,000. So like, multiply whatever it is that you need to live on by 25. And that gives you an at least a quick idea of how much money you need in savings, right? So some people they think, like, man, I need, you know, $10 million. I need, you know, maybe you do, right, like that's the lifestyle you want, like you want to be in abundance and be able to give back and do all sorts of other stuff like, absolutely go for it. But at the same point to like if you're like, Hey, I'm gonna have my house paid off and have my cars paid off. Like realistically I can live off of, you know, 20, you know, $50,000 a year multiply that by 25 And that gives you an at least a clear picture of like, hey, that's, that's a good goal for me to set for myself for the next 10 years, 15 years, 20 years, whatever it is that you're away from retirement. I think that's a good way to think about it too. So not only thinking about your day to day, right, like what we just talked about, you know, budgeting, you know, making more money today. But then what that looks like in the roll up of the whole picture, right? Like now I know, okay, I need to save a million and a half dollars, got 20 years to do it. What does that give me? Like? How much do I need to save this this year? How much do I need to be saving in five years? How much do I need to be saving in 20 years? So cool. What else guys What else we got? Feel free to unmute yourself here and read back through some of this chat. Lisa, good job paid off three credit cards.
Kyle Handy 40:44
I hear you Yep. Pay 60 or something to pay that off. And also reason why I even let myself charge that much. Oh, I totally get it. I've been there. Lisa. I mean, nine months ago, when I kind of you know, I don't know how many of you guys knew about my team. My real estate team. But you know, we kind of disbanded the team and we've racked up a lot of credit card stuff, right? I was kind of telling myself I gotten into this mindset of like, hey, it's for the business. You know, most businesses have debt anyways, like, I'll just pulled out on this credit card. And yeah, I'll be paying interest but I can write that off. It's against the business, no big deal, right. But then when it came time to pay that I think I was like $70,000 in debt from from those credit cards. And it took me I mean, it's funny, though, but when I made it a commitment to pay that off, took me like three months and basically every commission that I earned those three months. I mean, I barely paid money, I paid my bills, of course, you know, but then every other Penny went to paying off those credit cards, and I did that right. So that was such a good feeling just to get that beyond me. Not that Think about it. So it is it 6060 or something, but there will eventually definitely makes you feel a lot better about yourself. Cool. Lisa, you'd mentioned what is a good starting percent is to pay yourself first. So last week when we did the call, we gave some baseline percentages. I'm not saying this is the end all be all for everybody because, you know, we mentioned about it, you know, you need a budget and how many accounts to set up. And you know, the amount of accounts that you set it up and the percentages is not as important as having the plan, right. And the plan might have be different for each person on this call. But we've talked about six accounts to set up and we had put in those six accounts that the first account was necessities and you put 55% of your income there, that's toward paying off, you know, your house, your debt, you know, like your minimum payment on your debts, all that kind of stuff falls under the necessities, things do.
Kyle Handy 42:38
Yeah, right. Like that doesn't go into that account. That is like, you know, the food you might buy at HDB or the grocery store, because you have to eat to live right and so you're going to eat at your house, but like going out doing fun things like that's not a necessity. necessity is that would account for 55% long term spending 10% which is you know, that's going to include paying off your debt. If you've already paid off all your debt, this That's going to go into a savings account for your big purchases, right? Like maybe you're going to buy a car, you're coming up, right? So put that same 10% towards that. And then you know, when that car time comes to buy that new car, you're not taking debt out to buy it, you use your long term spending on that 10% goes into your play account. 10% goes into your education account, 10% goes into your financial freedom account, and 5% goes into your charity account. That's how we had set it up last week. Alright, so hope that helps.
Unknown Speaker 43:29
Kyle, I gotta jump here in a minute. But I've got a quick observation. I just wanted to I wanted to share with everybody specifically related to kind of your real estate sales business. So I've got the list written down on a piece of paper because I'm like a note taker, right. So in the middle guys, you know, there's 10 habits, habit number four or 567 and eight, I'm going to read them off in order real quick. If you guys go back through the chat, you can read it and kind of look at it the same I'm looking at it. Number four says invest in education. Number five says take ownership. Number six says actively seek problems to solve seven says seek out leverage and eight says sever the dollar per hour connection. Imagine if you weren't, you know, imagine if tomorrow or tonight you don't go to work on your finances per se. But you were to look at those five habits right there and think about them as a professional Realtor. So think about like, number one, what are you doing to invest in yourself and become better today for tomorrow? as a as a realtor? Like what are you investing in? What education are you spending money on? Just like if you don't go balance your budget and you don't go set up six accounts? Like are you investing in yourself so you can be better tomorrow? I can't tell you how many like continuing education classes and coaching sessions and things I've paid for that I took away something so helpful, that it helped me go sell another house or go be a better entrepreneur. The next one take ownership. You know, you harped on that for a while Kyle, but a lot of times I think in our real estate business we fail to take ownership like oh man is just slow the markets down. You know, we're just making excuses. They're not ready to buy. You know that person is going to wait before they lyst like take ownership and Look at number six, which says seek problems to solve. Like, if they're not listening with you, if they're not buying with you, it's because you haven't solved their problem and you haven't helped them figure it out the numbers, you haven't helped them get over the hurdle or the objection or the condition that they've gotten their life like you haven't moved it out of the way. And when you shift from just thinking about like, being a transactional agent to actually solving these people's problems, you know, your business will completely take off, seek out leverage, you gave some good tips, your colleagues want to make sure people didn't, you know, like, Don't glance over that, you know, you just laid out you as a business have one yet you have a whole lot of leverage in your business, the transaction coordinators is showing the systems, everybody in between, you know, your vendors, partners, all that good stuff. And then the dollar per hour production, I think is another one because a lot of agents I hear a lot of buyers agents, for example, say oh, I've shown this person, this many houses and the numbers like astronomical and crazy, that means you haven't taken ownership of that process and you haven't really figured out their problem or else you would have figured out how to show them the house that makes sense. For them like so just some examples that goes straight to your real estate business you know that our habits of the wealthy and they're probably habits of the wealthy real estate agents as well. Just wanted to highlight those man. Great, great call Kyle. I love this 10 habits love last week's session as well. Thank you so much.
Kyle Handy 46:14
Awesome. Yeah, that was a good recap. Appreciate that Curtis. cool guys. What else we got? I know we got still a lot of people here sticking around on the calls. We got Jerome and Tom. Norma, what do you guys curious of Tim? Sylvia, good to see you Heather. I appreciate all you do. All your contributions. Awesome, guys. Feel free to type it in the chat. Feel free to unmute yourself. Otherwise this might be an early call. We might wrap up a little early which these people probably at the coffee shop won't mind because I've been over here probably yelling in their ears for the last 45 minutes about financial stuff. Let's see. Head to organize this time I love it Sylvia no questions because I was too organized day I'll take that. I'll take that.
Unknown Speaker 47:02
So I don't I don't have any questions. But I just want to reiterate what we talked about last week. And we saw before this call and the people, there are some consistencies with certain books and certain philosophies. And last week came up.
Unknown Speaker 47:20
I'm sorry, and this week, cash cashflow quadrant came up. So I just want to point out those consistencies about those books. And you know, the most successful people, these there's a constant library of certain books that come up and with finances again, Richest Man in Babylon cashflow quadrant, and there's some others that I'm thinking of that I that I can't think of specifically, but I just wanted to point that out.
Kyle Handy 47:48
I love it. Thank you, Jerome. Appreciate that. Yeah, and like I said, the other one that we talked about too, is simple path to wealth. It's a great, great book. I think it really just makes it so much because here's the thing is finances are so powerful. complicated. And I truly believe that they're complicated on on purpose, there's a lot of people out there that want to take your money from you, right? So they make things seem more complicated than they need to be. Because if they can make it complicated, they can, you know, somehow take that money separate from you, right. And so, you know, if you read these books that really talks about how to keep your money, simple, you know, and simple path was a good one talking about just investing in, you know, low cost index funds, you know, Vanguard, you know, mutual fund, or you know, index fund. I think that's a good way to, like start at least in mind, thinking like, hey, this doesn't have to be complicated. It's mostly just awareness, right? Like keeping aware of your finances, and then consistency, you know, putting a consistent amount every single month towards a simple investing strategy, right, like, that's not complicated. It's not risky, or it's not as risky. I mean, you know, any investment is going to be risky. I'm not a financial advisor or telling anything like that, you know, my legal jargon behind me, but But I mean, it's you know, it's gonna be something that you know is just easy for you to do. And then once you get on that path truly I mean time will, you know, be your greatest asset. If you get a system in place and you're consistent, then time is your best friend, right? Like because if you you know, you just look back 10 years and you were consistent, you will have no issues there will be no problem at that point in time. 20 years 30 years. I mean, you're talking it's all gravy if you get these principles and you put them to work you know, you can do a lot with a little so what else we got guys? You and I see your video on are you gonna say something man? That's you like okay, man, I'm having tech challenges today. Oh, no. Oh, no. All good man. I'm on my laptop. I got my iMac like everything is like not working at all so. Oh, no worries. No worries. You guys got it all covered, man. So appreciate it in Tom. What did you think? I see your drive and stuff. You're
Unknown Speaker 50:00
Good, good stuff, man. I think that's, you know, making money and selling houses is one thing, right? But it's at the end of the day what we teach you guys hammer, you nailed it today. So pay yourself first. That's the first one out of the 10 that I like the most. So if you guys stay disciplined with that, you'd be amazed, you know, with the XP, we've got that 5% I can't imagine any real estate agent who doesn't pay themselves at least 5% versus a 20% discount. How good is that right? To me, and it's totally surprises me, Kyle and Curtis that, you know, when I asked glenn sanford, I asked our CFO is how what percentage of agents take care of that. And they don't, we don't have 100%. So if you're on this call right now, and you're not paying yourself first, you got to stop thinking twice about doing that number one, and it's 5% even enough, right? To take an extra 5% and pay yourself first and then what else do the other thing is the stock we do get Talking about buying the stock at 20% discount, but our agents are the ones that
Unknown Speaker 51:07
Unknown Speaker 51:08
Kyle Handy 51:12
I will no I haven't. So So yeah, I mean, in Tom just so you this call is it's a little you know more to where it's like, hey, everybody's invited. So I didn't get too deep into like the EXP stuff or like you know some of the extra opportunities we have any XP but what time is? No, no, it's all good. What time is mentioning is that with our brokerage we do have a model where basically we can take 5% of our commissions and our brokerage will automatically hold that back and buy stock on our behalf. And I think it's just a good example like what he had just mentioned, he talked to the founder of the company, and he's saying that the percentage of agents that don't even take advantage of that opportunity. It's pretty high that don't, right, so like it's not 100% that take advantage of it. And even when I talked to new agents of like, Oh yeah, I didn't sign up for that. You know, I just I can't do that right now. It's like, man, I You can't afford not to do that, like you're getting you know, it's a 20% discount is just 5% of your of your money, the other so many agents and if you're like an agent of the different brokers or if you're not even an agent like that you probably have that same mindset, like I can't even take 5% of my money and pay myself first with it. Like, that's a scary thing, guys. And I'm telling you, you got to figure that out quickly. Because otherwise you're just going to be always in that rat race, always in that hamster wheel. And so 5% guys at the minimum, like if I could take 50% and do that with that program time, I'd be all over it right. Like I would put everything I would into it, because it's such a good program. But yeah, guys, you gotta really get that one nailed down is the paying yourself first. So love it guys. Cool drone. Yep. Wealthy people priorities paid themselves first.
Unknown Speaker 52:47
Cool, cool. Cool.
Kyle Handy 52:48
Alright guys, well, hey, we're getting close to the top of the hour here. Unless there's any other questions. We'll go ahead and wrap it up a little early. I'm going to get working on posting this up on Patreon. So if you missed it The first half of this call or if you just want to watch it back again, I'll tell you what I've been doing this research on stuff I like the other day I was power washing my driveway and normally, I pay somebody to do that right or like I just don't like doing the same thing like over and over and over. But that day for some reasons, like I'm going to do this myself, I literally put in like my ear pods. And I listened to like this stuff that we're talking about here. I listened to a couple different people that were doing podcasts and you know, in my mind just listening to it right because like to me standing there power washing my driveway is not a big use of my time. But if I'm like learning something at the same time, hey, now I can kind of justify it a little bit better. So in my head, I was like all right, this is fine. And and I listened to the probably the same podcast two times. Three different ones, right. So three different ones. I listened to him twice just to like hear it and really get it and understand that I listened to it once just take it all in. And then I listened to it again and I actually took notes right so Like this kind of stuff, you know you just gonna listen to it back if you want to hear it again again we got it on our arm my Patreon page patreon.com slash Kyle Handy we got last week's call on there which we talked all about money as well and just you know these are all falling under the agent sales training calls these are the financial ones because we're doing them on our Monday mastermind the agent sales training which I think it's 498 a month is the the ones that takes the Monday mastermind and then our Tuesday calls are the agent attraction trainings. That is for and I mean for you can get access all of them for $8 and 49 cents a month it gives you the Monday and the Tuesday masterminds from from the weeks past so anyway encourage you to do that or if you got a question we didn't talk about it or maybe you need more detail. Reach out to me guys. I love you know, helping and trying to help you solve problems. So you know, reach out to me on social media. You can email me Kyle at the Handy team calm and I'd be happy to you know, kind of hear what what you're working with. You know what questions you got? And then any success stories like I saw somebody earlier said they did sign up for you need a budget last week called after the call Sylvia did and yeah, she said she was shocked by what she was spending on a variety of little things. I love to hear stuff that you know, people are taking action. And I love to hear people that are you know, learning things or you know, if something that I recommended wasn't good, you know, share that with me too. Because again, you know, this the intention for this call is to you know, help us all grow. And so we're all learning it's not just me I'm now coming out with these trainings and topics myself and doing a lot of the research but the end of the day guys that there's people that can contribute or share their experience from something that we talked about even better guys, we want to get that on here. So thanks again for everybody for all that you do. And I'm going to get back to my house now because I think our showing is up so get back here and get get to work so everyone have a great week and we'll see it See you next week or on the Tuesday OB on that one