The Money Advantage Podcast https://themoneyadvantage.com Success Leaves Clues, Follow the Successful Few Not the Crowd! Wealth Is Accessible to Anyone. Take Control of Your Destiny! Mon, 17 Sep 2018 09:00:53 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.8 The Money Advantage provides simple, fun, and doable financial education resources that help you keep and control more of what you make every month, get your money working for you, increase your cash flow, reduce your risk and give you permission to use your money along the way.<br /> <br /> We serve Entrepreneurs and Business Owners, creating solutions and strategies that previously didn’t exist in your personal and business economy.<br /> <br /> We are proponents of the Prosperity Economics Movement, which offers an alternative to “typical” financial planning and its tendency to subject assets to never-ending taxes, fees, and market risk.<br /> <br /> We show you how to utilize a Privatized Banking System, which allows you to improve access to capital, boost your returns, earn uninterrupted compound growth, reduce risk, AND have the ability to leverage your capital to take advantage of opportunities, getting your money to do more than one job at the same time.<br /> <br /> Through the family office model approach in our advisory practices, we bring together comprehensive education and strategies in the areas of cash flow, long-term tax reduction, estate and business legal planning, creative whole life strategies and alternative investments. Bruce Wehner & Rachel Marshall clean episodic Bruce Wehner & Rachel Marshall hello@themoneyadvantage.com hello@themoneyadvantage.com (Bruce Wehner & Rachel Marshall) Personal Finance for the Entrepreneurially-Minded! The Money Advantage Podcast https://themoneyadvantage.com/wp-content/uploads/powerpress/3000x_border-798.jpg https://themoneyadvantage.com See You Next Week https://themoneyadvantage.com/see-you-next-week/ Mon, 17 Sep 2018 09:00:53 +0000 https://themoneyadvantage.com/?p=2956 We'll be back next week with our regular podcast, video, and blog.  I promise it's one that's well worth the wait. This week, my family and I spent several days preparing for Hurricane Florence.  Because we were bracing for potential rain, wind, storm surge, flooding and power outages in our area, we closed the office, packed up, and left town.   I'm so grateful to report that our home and community were largely unaffected.  We did get a mini vacation out of it and spent a few beautiful days with my sister's family in Kentucky. Rather than go radio silent, we wanted to let you know we're alive and well, and we'll see you next week. Until then ... Model the successful few, not the crowd.  And build a life and business you love. We’ll be back next week with our regular podcast, video, and blog.  I promise it’s one that’s well worth the wait.

This week, my family and I spent several days preparing for Hurricane Florence.  Because we were bracing for potential rain, wind, storm surge, flooding and power outages in our area, we closed the office, packed up, and left town.

 

I’m so grateful to report that our home and community were largely unaffected.  We did get a mini vacation out of it and spent a few beautiful days with my sister’s family in Kentucky.

Rather than go radio silent, we wanted to let you know we’re alive and well, and we’ll see you next week.

Until then …

Model the successful few, not the crowd.  And build a life and business you love.

]]>
We'll be back next week with our regular podcast, video, and blog.  I promise it's one that's well worth the wait. - This week, my family and I spent several days preparing for Hurricane Florence.  Because we were bracing for potential rain, wind,
This week, my family and I spent several days preparing for Hurricane Florence.  Because we were bracing for potential rain, wind, storm surge, flooding and power outages in our area, we closed the office, packed up, and left town.



 

I'm so grateful to report that our home and community were largely unaffected.  We did get a mini vacation out of it and spent a few beautiful days with my sister's family in Kentucky.

Rather than go radio silent, we wanted to let you know we're alive and well, and we'll see you next week.

Until then ...
Model the successful few, not the crowd.  And build a life and business you love.]]>
Bruce Wehner & Rachel Marshall clean 1:45
Taking Time Off Can Increase Your Productivity and Better Your Company (Reviewed) – TMA 044 https://themoneyadvantage.com/taking-time-off-increase-productivity-better-your-company/ Mon, 10 Sep 2018 09:00:49 +0000 https://themoneyadvantage.com/?p=2875 For the business owner who wants to perform at their best and make the most out of life, the answer may be in working less, not more.  In his insightful article Taking Time Off Can Increase Your Productivity and Better Your Company, Dan Sullivan, of Strategic Coach, reveals the leverage that taking time off can give your work life, your non-work life, your company, and your employees. His advice runs against the grain of our culture that is addicted to workaholism.  We live on caffeine, harried, hurried, incessantly busy, multitasking, distracted and idolizing the hustle.  Embracing a slower pace seems to be a sign of weakness. But sometimes the things we think are making us better, are actually making us worse. Taking time off helps you get more done, not less. It’s time to view free time as a necessity, not just a delicacy. Free time isn’t just a reward for hard work; it’s a necessary prerequisite for doing good work. Why Taking Time off Works Taking time off refreshes and rejuvenates you, giving you more creativity, and fresh ideas to innovate. When you take time away from your business, it requires you to streamline systems, processes, technology, and your team, instead of relying on yourself.  The result is that you increase your output, without increasing your input.  You become the leader that sets the standard, modeling a culture of valuing yourself, which improves the company culture and decreases burnout, turnover, and associated costs. Best of all, it develops you into an interesting multi-dimensional person who can enjoy life now.  It gives you the room to excel in your health, family, friendships, hobbies, and create a life of meaningful experiences. Sullivan not only teaches this way of life, but he also champions it in his own life.  He uses the Entrepreneurial Time System, a plan of focus days, buffer days, and free days.  He shares his personal rule to work only 210 days per year. When he takes time off, he completely unplugs, being completely unreachable by phone or email.  This requires him to develop a team he trusts, and then trust them to work well.  It’s the way to build a truly self-managing company, an asset that produces revenue independent of the time you contribute.  That’s how you move out of the rat race of trading time for money. While we aren’t there yet in our own lives, we’re using these principles to value our creativity and contribution, work with more focus, and take more time away from our work.  This helps us build a bigger vision. What about you?  What are your rules about taking time off?  How will you give yourself more freedom to enjoy life today and take time off? Get More out of Your Money Without Working Harder If you would like to optimize your financial life so that you can get more out of your money without working harder, gain more enjoyment satisfaction and abundance, contact us to request a financial picture conversation. We’ll help you maximize your wealth today and, in the future, by: Discovering money flowing into your control and money flowing out of your control Strategizing ways to have more money flowing into your control With the End Result being more money to utilize during your lifetime, and more to give to future generations Email us at hello@themoneyadvantage.com to share your comments, questions, and feedback with us. Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love. For the business owner who wants to perform at their best and make the most out of life, the answer may be in working less, not more.  In his insightful article Taking Time Off Can Increase Your Productivity and Better Your Company, Dan Sullivan, of Strategic Coach, reveals the leverage that taking time off can give your work life, your non-work life, your company, and your employees.

His advice runs against the grain of our culture that is addicted to workaholism.  We live on caffeine, harried, hurried, incessantly busy, multitasking, distracted and idolizing the hustle.  Embracing a slower pace seems to be a sign of weakness.

But sometimes the things we think are making us better, are actually making us worse.

Taking time off helps you get more done, not less.

It’s time to view free time as a necessity, not just a delicacy.

Free time isn’t just a reward for hard work; it’s a necessary prerequisite for doing good work.

Why Taking Time off Works

Taking time off refreshes and rejuvenates you, giving you more creativity, and fresh ideas to innovate. When you take time away from your business, it requires you to streamline systems, processes, technology, and your team, instead of relying on yourself.  The result is that you increase your output, without increasing your input.  You become the leader that sets the standard, modeling a culture of valuing yourself, which improves the company culture and decreases burnout, turnover, and associated costs.

Best of all, it develops you into an interesting multi-dimensional person who can enjoy life now.  It gives you the room to excel in your health, family, friendships, hobbies, and create a life of meaningful experiences.Taking Time Off Can Increase Your Productivity and Better Your Company

Sullivan not only teaches this way of life, but he also champions it in his own life.  He uses the Entrepreneurial Time System, a plan of focus days, buffer days, and free days.  He shares his personal rule to work only 210 days per year. When he takes time off, he completely unplugs, being completely unreachable by phone or email.  This requires him to develop a team he trusts, and then trust them to work well.  It’s the way to build a truly self-managing company, an asset that produces revenue independent of the time you contribute.  That’s how you move out of the rat race of trading time for money.

While we aren’t there yet in our own lives, we’re using these principles to value our creativity and contribution, work with more focus, and take more time away from our work.  This helps us build a bigger vision.

What about you?  What are your rules about taking time off?  How will you give yourself more freedom to enjoy life today and take time off?

Get More out of Your Money Without Working Harder

If you would like to optimize your financial life so that you can get more out of your money without working harder, gain more enjoyment satisfaction and abundance, contact us to request a financial picture conversation.

We’ll help you maximize your wealth today and, in the future, by:

  • Discovering money flowing into your control and money flowing out of your control
  • Strategizing ways to have more money flowing into your control
  • With the End Result being more money to utilize during your lifetime, and more to give to future generations

Email us at hello@themoneyadvantage.com to share your comments, questions, and feedback with us.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

]]>
For the business owner who wants to perform at their best and make the most out of life, the answer may be in working less, not more.  In his insightful article Taking Time Off Can Increase Your Productivity and Better Your Company, Dan Sullivan, Taking Time Off Can Increase Your Productivity and Better Your Company, Dan Sullivan, of Strategic Coach, reveals the leverage that taking time off can give your work life, your non-work life, your company, and your employees.

His advice runs against the grain of our culture that is addicted to workaholism.  We live on caffeine, harried, hurried, incessantly busy, multitasking, distracted and idolizing the hustle.  Embracing a slower pace seems to be a sign of weakness.

But sometimes the things we think are making us better, are actually making us worse.

Taking time off helps you get more done, not less.

It’s time to view free time as a necessity, not just a delicacy.
Free time isn’t just a reward for hard work; it’s a necessary prerequisite for doing good work.

Why Taking Time off Works
Taking time off refreshes and rejuvenates you, giving you more creativity, and fresh ideas to innovate. When you take time away from your business, it requires you to streamline systems, processes, technology, and your team, instead of relying on yourself.  The result is that you increase your output, without increasing your input.  You become the leader that sets the standard, modeling a culture of valuing yourself, which improves the company culture and decreases burnout, turnover, and associated costs.

Best of all, it develops you into an interesting multi-dimensional person who can enjoy life now.  It gives you the room to excel in your health, family, friendships, hobbies, and create a life of meaningful experiences.

Sullivan not only teaches this way of life, but he also champions it in his own life.  He uses the Entrepreneurial Time System, a plan of focus days, buffer days, and free days.  He shares his personal rule to work only 210 days per year. When he takes time off, he completely unplugs, being completely unreachable by phone or email.  This requires him to develop a team he trusts, and then trust them to work well.  It’s the way to build a truly self-managing company, an asset that produces revenue independent of the time you contribute.  That’s how you move out of the rat race of trading time for money.

While we aren’t there yet in our own lives, we’re using these principles to value our creativity and contribution, work with more focus, and take more time away from our work.  This helps us build a bigger vision.

What about you?  What are your rules about taking time off?  How will you give yourself more freedom to enjoy life today and take time off?
Get More out of Your Money Without Working Harder
If you would like to optimize your financial life so that you can get more out of your money without working harder, gain more enjoyment satisfaction and abundance, contact us to request a financial picture conversation.

We’ll help you maximize your wealth today and, in the future, by:

* Discovering money flowing into your control and money flowing out of your control
* Strategizing ways to have more money flowing into your control
* With the End Result being more money to utilize during your lifetime, and more to give to future generations

Email us at clean 23:52
Opportunity Cost: The Invisible Cost of Financing – TMA 043 https://themoneyadvantage.com/opportunity-cost-the-invisible-cost-of-financing/ Mon, 03 Sep 2018 09:00:17 +0000 https://themoneyadvantage.com/?p=2869 Opportunity cost, like the submerged portion of an iceberg, is a part of your financial decisions hidden from view.  While odorless, colorless, tasteless, and silent, opportunity cost is a threat to your wealth creation.  This wealth restrictor is no respecter of persons or purchase types.  Opportunity cost is the tag-along to every financial decision you’ll ever make, whether you finance or pay cash.  Because a dollar is a seed, every time a dollar leaves your economy, it takes along with it the harvest it had the possibility to create in your lifetime. The repercussions of every choice to use your money continue to echo throughout the rest of your life and legacy.  And just as with icebergs, what’s beneath the surface, is often more important, and much more substantial. Earlier in the Series on Debt Previously, in Why Debt Free Doesn’t Make You Financially Free, we demonstrated clearly what debt is and what it isn’t, and that rushing frantically to pay off loans may be one of the riskiest financial moves you can make. Then, in The Right Way to Spend Money: Spender, Saver, or Steward? we discovered the limitations of both the Spender and the Saver.  We also uncovered the superpowers of the Steward to create wealth through control, access to capital, and uninterrupted compound interest. The Whole Truth About the Whole Cost of Financing Now, let’s pull the curtain back to look at the behind-the-scenes cost of financing.  We’ll help you discover the truth, the whole truth, and nothing but the truth, in each method of financing.  You'll see why your purchasing method, more than what you purchase, makes the most difference in your control or loss of control. We’ll answer: What are the real, costs of financing over time? What are the real, costs of paying cash over time? How do I evaluate the entire cost of my financing options to make the best decisions that give me the most control? Instead of considering only the face value cost and judging the book by its cover, you’ll gain insight into the opportunity cost of any capital outlay, so you can understand what’s inside each purchasing decision.  Rather than purchasing big ticket items in a way to avoid something out of fear, you’ll see the path to making empowered decisions that increase your wealth potential.  You’ll go from taking mental shortcuts in purchasing that make you lose control, to a system of thinking that puts you in greater control. Where Opportunity Cost Fits into Your Cash Flow System Limiting your opportunity cost is just one part of your Survival to Significance Cash Flow System. The more you reduce the money leaking out of your control today, the smaller your opportunity costs over time.  Consequently, the more wealth you have to protect and turn into streams of income. #1: The Concept of Opportunity Cost The Cost and Opportunity Cost of Financing It’s easy to see that when you pay with a loan or credit, you’ll pay interest.  That’s the part of the financing decision above the surface, the cost of financing at face value. But over time, you give up a lot more than the dollars of interest. The bottom half of the iceberg – the opportunity cost of paying interest – is the echo of that expense.  It’s what those monthly payments could have earned for you, had you kept them.  In other words, opportunity cost is what you didn’t get.  The opportunity cost of financing is what you could have done instead if you didn’t have the payments.  It's what those payments could have grown into, if you’d been able to save and invest them instead. Easy enough, right? Why Paying Cash Seems More Sophisticated Than Using a Loan A loan’s obvious interest payment is the red flag of financing.  It warns, “Hey, when you pay interest, you’re paying more than the full cost of the item.  It’s costing you more than the face value, and it’s causing you to lose money.” This is why paying cash seems like a better decision than taking out ... Opportunity cost, like the submerged portion of an iceberg, is a part of your financial decisions hidden from view.  While odorless, colorless, tasteless, and silent, opportunity cost is a threat to your wealth creation.

This wealth restrictor is no respecter of persons or purchase types.  Opportunity cost is the tag-along to every financial decision you’ll ever make, whether you finance or pay cash.  Because a dollar is a seed, every time a dollar leaves your economy, it takes along with it the harvest it had the possibility to create in your lifetime.

The repercussions of every choice to use your money continue to echo throughout the rest of your life and legacy.  And just as with icebergs, what’s beneath the surface, is often more important, and much more substantial.

Earlier in the Series on Debt

Previously, in Why Debt Free Doesn’t Make You Financially Free, we demonstrated clearly what debt is and what it isn’t, and that rushing frantically to pay off loans may be one of the riskiest financial moves you can make.

Then, in The Right Way to Spend Money: Spender, Saver, or Steward? we discovered the limitations of both the Spender and the Saver.  We also uncovered the superpowers of the Steward to create wealth through control, access to capital, and uninterrupted compound interest.

The Whole Truth About the Whole Cost of Financing

Now, let’s pull the curtain back to look at the behind-the-scenes cost of financing.  We’ll help you discover the truth, the whole truth, and nothing but the truth, in each method of financing.  You’ll see why your purchasing method, more than what you purchase, makes the most difference in your control or loss of control.

We’ll answer:

  1. What are the real, costs of financing over time?
  2. What are the real, costs of paying cash over time?
  3. How do I evaluate the entire cost of my financing options to make the best decisions that give me the most control?

Instead of considering only the face value cost and judging the book by its cover, you’ll gain insight into the opportunity cost of any capital outlay, so you can understand what’s inside each purchasing decision.  Rather than purchasing big ticket items in a way to avoid something out of fear, you’ll see the path to making empowered decisions that increase your wealth potential.  You’ll go from taking mental shortcuts in purchasing that make you lose control, to a system of thinking that puts you in greater control.

Where Opportunity Cost Fits into Your Cash Flow System

Limiting your opportunity cost is just one part of your Survival to Significance Cash Flow System.

The more you reduce the money leaking out of your control today, the smaller your opportunity costs over time.  Consequently, the more wealth you have to protect and turn into streams of income.

#1: The Concept of Opportunity Cost

The Cost and Opportunity Cost of Financing

It’s easy to see that when you pay with a loan or credit, you’ll pay interest.  That’s the part of the financing decision above the surface, the cost of financing at face value.

But over time, you give up a lot more than the dollars of interest.

The bottom half of the iceberg – the opportunity cost of paying interest – is the echo of that expense.  It’s what those monthly payments could have earned for you, had you kept them.  In other words, opportunity cost is what you didn’t get.  The opportunity cost of financing is what you could have done instead if you didn’t have the payments.  It’s what those payments could have grown into, if you’d been able to save and invest them instead.

Easy enough, right?

Why Paying Cash Seems More Sophisticated Than Using a Loan

A loan’s obvious interest payment is the red flag of financing.  It warns, “Hey, when you pay interest, you’re paying more than the full cost of the item.  It’s costing you more than the face value, and it’s causing you to lose money.”

This is why paying cash seems like a better decision than taking out a loan.  The apparent cost is less since you don’t have to add in the interest.  Consequently, it seems like you’re keeping more of your money.

But Paying Cash Is Expensive, Too

However, – a really big however – paying cash has a cost and an opportunity cost, too!Opportunity Cost - The Invisible Cost of Financing

The cost of paying cash is the cash itself.  The opportunity cost of paying cash is the interest the cash could have earned, had you kept it, that you no longer get to earn because you don’t have the cash.

We humans have a funny way of looking at loss.  If you had something and then lost it, we consider that a loss.  But if you had the potential to get something, and then lost that potential, that type of loss is a bit harder to wrap our brain around.

The interest you pay when you finance is money you had that’s being taken away.  That’s why it’s an apparent loss.  What’s harder to see is what your cash could have done for you, had you kept it.

Additionally, the low-interest rate environment saps our creativity.  We can’t possibly see how we could earn much on our cash, causing us to have no idea of our true potential.  Imagine you could get a higher return on your savings.  Would that change the equation for you?  What if you knew you could save your cash and earn between 3 – 5% on your money while it was waiting to be used, and then could also invest it at 12% cash-on-cash returns in real estate or businesses?  Would that help you see how valuable your cash is?  Remember, opportunity seeks liquidity.

The opportunity cost of cash is the part of the financing iceberg that lurks beneath the surface of the water.  The submerged part of the iceberg that tragically sunk the Titanic is the same hidden blind spot in most people’s financial decision-making that could sink you too.

You Finance Everything You Buy

I’ll admit, the word financing is a little deceptive because it seems that it means to get a loan.

However, financing simply means “the process of providing funds.”

When you get a loan, you use the funds of another party and pay a premium to do so.  The premium for using other people’s money is the interest you pay.

But, when you pay cash, you don’t avoid the premium, it just comes in a different form.

When you pay cash, you self-finance by providing your own funds. To make the purchase, you deplete your cash reserves.  The money leaving your control takes along with it the interest it could have earned, had you kept the cash.

All capital, regardless of whether it’s yours, the banks’, or an investors’, has a cost.

This boils down to the Interest Principle.

The Interest Principle: You are always paying interest. 

You either pay interest when you finance, or you give up the interest you could have earned when you pay cash.

If There’s a Cost, There’s Always a Corresponding Opportunity Cost

When there’s an iceberg visible above the water, there’s always a corresponding mass of ice beneath the water as well.  Likewise, whenever you have a cost, there’s always an opportunity cost.

When you take a loan, you pay interest.  The monthly payments are your cost.  Your opportunity cost is what the payments could have earned for you over time, had you kept them.

Similarly, when you pay cash, your cost is the cash itself.  Your opportunity cost is the interest you could have earned on that cash, had you kept it.

Opportunity Cost over Time

You can best understand opportunity cost if you zoom way out from living in your life and look at the impacts of your decisions over time. Imagine taking off in a jet, high above the timeline of your life, and viewing all of your lifespan in one glimpse.

Your Wealth Potential

If you were to measure all of the dollars that flow into your hands during your lifetime, you’d be astonished by the impressive quantity.  For example, a $100K income earned each year, over 40 working years, is a total of $4 Million.  This is the income potential.

Your income potential is the sum total of all the money you’ll ever earn. You calculate your income potential by simply adding each year’s income to the next year’s throughout your working career.

Every dollar you earn, if saved or invested, converts from income potential to wealth potential.

On the earning side, you’d be even more astounded if you fully maximize your income by completely developing your potential to create value.

On the investing side, if you put every one of those dollars to its highest use, investing in cash-flowing assets you know and control, you would create surely time and money freedom.

For the ease of understanding, let’s just imagine you invest ALL of those $100,000 every year, for 40 years, and could earn an annual 5% on your money.  At the end of 40 years, you’d have over $12 Million!  That is the wealth potential in this example.

Now, no one can save and invest every dollar they earn.  Much of our money is used up in some way, exiting your personal economy, never to work for you again.

Every Dollar That Exits Your Personal Economy Erodes Your Wealth Potential

If we examine the seed-like potential stored in each dollar that comes through our hands, we realize the jeopardy we place our wealth in when we eat or spend, our seeds.

Let’s look at it this way.  If you had $100,000, put it to work for 30 years at 5% annual return, compounded monthly, without adding any new money or taking anything out, you’d end up with about $447K (green bars). Opportunity Cost IMG1

Two things that will maximize your wealth potential:

  1. The more of today’s dollars you put to work, and
  2. The longer you let them work for you

 

 

When you put more money to work for longer, you realize more of your wealth potential.  The opposite is also true.  The less of your money you put to work, for less time, the less of your wealth potential you realize.

The opportunity cost is what the dollar can no longer produce for you throughout your entire lifespan because it vanished from your personal economy.Opportunity Cost IMG2

If you spent $90K of your original $100K, it can’t work for you, and the future years of growth on that $90K are lost forever.  Instead, you invest only $10,000 at 5% over 30 years, ending up with about $45K (red bars).  Using your $90K shrank your wealth potential by about 90%, or by $402,000.

In this example, $90,000 is what you spent, but $402,000 is the opportunity cost of using this money.  It’s the wealth that you didn’t create. Opportunity Cost IMG3

Paying Cash Resets the Compound Interest Curve

Another way to see the opportunity cost of paying cash is to watch the compound interest curve reset every time you use your cash.  If you use your $100K just once, even if you put it all back over 5 years, you end up with about $386K.  You give up about $61K that money would have created by year 30, just because you pushed back the start of your compounding (see the gold bars with just one dip).Opportunity Cost IMG4

Imagine if you do what so many cash-payers do – stocking their cash account, using it up, and then restocking again – throughout a lifetime!  (See the gold bars that dip multiple times.)  You never give your money a chance to grow.

Therefore, opportunity cost is the erosion of your wealth potential over the rest of your life, caused by today’s financial decisions.

Comparing the Opportunity Costs of the Saver and the Steward

To bring this idea out of the shadows of the intangible, here’s an example to make it more concrete.

Imagine you had $100,000 of cash and wanted to buy a business that costs $100,000.  You’re debating whether to pay cash or use a loan.  For illustrative purposes, we’ll assume it’s possible to take a loan for the full amount without a down payment.

How should you pay for it to limit your costs and opportunity costs over time?

Last time, we discussed the three ways to purchase:

  1. The Spender finances, because they have no cash, and financing with an unsecured loan is their only option.
  2. The Saver pays cash to avoid paying interest.
  3. The Steward uses a Private Reserve to keep their cash, financing with a secured loan collateralized by their cash.

For today’s purpose, we’ll compare an example between the Saver and the Steward.  We’re taking the Spender’s strategy off the table because in this case, you already have the cash to pay in full.  You’re now deciding whether to pay cash and save the interest, or finance and pay interest so you can keep your cash.

That’s really the difference between the Saver and the Steward.  Both have cash.  They just choose to make the purchase differently.

We’ll look at the measurable impacts, not only right away, but over time.

Ensuring a True Comparison

To make a valid comparison, we must change only one variable.  We’ll look at both examples over the same timeframe of 30 years, with equal interest rates in both cases: 5% crediting rate and 5% borrowing rate.  Our only difference will be whether we pay cash or finance.

Here, again, you may feel this is unrealistic to earn an interest rate equal to what you’d pay on borrowed money.  Low returns on your savings are one of the reasons it’s so hard to envision this concept.  For now, persevere in understanding this idea, and then we’ll discuss how to get a higher return on savings and how to think about opportunity cost in spite of uneven interest rates.

Visible Cost

If you take a $100,000 loan at 5% over 30 years, you’d have a monthly payment of $537.  Your outflow over the course of the loan will be $193,256, costing you $93,256 of interest over and above the purchase price.

If instead, you pay cash, your outflow will be only $100,000.

Opportunity Cost

Let’s look at the whole costs over time.

On the one hand, if you pay cash, you give up your $100,000 and what it could have earned for you.  Remember, opportunity cost is what you didn’t get.  $100,000 earning 5% annually for 30 years, compounded monthly, would have grown to $446,774 by the end of those 30 years.  Paying cash causes you to give up $346,774 of interest you won’t create because you used up the cash.

On the other hand, if you finance, you give up cash in the form of a monthly payment of $537 for the next 360 months.  Since opportunity cost is what you didn’t get, let’s consider what you could have done with $537 each month if you hadn’t had the payment.  If each of those payments had been saved each month and earned 5%, your account could have grown to $446,774 at the end of the 30 years.  Financing causes you to give up the ability to save up those payments each month and what they could create.

If you pay cash, your opportunity cost is $446,774.  If you finance, your opportunity cost is $446,774. Both options cost you the same! No matter whether you paid cash or financed the $100,000 equipment purchase, the $100,000 decision today cost you $446,774 over the next 30 years!

No matter whether you paid cash or financed the $100,000 equipment purchase, the $100,000 decision today cost you $446,774 over the next 30 years!

I hope it’s apparent that paying cash has a cost, and that saving dollars of interest is the wrong thing to focus on if you want to maximize your wealth creation potential.

Here’s why: if the interest rate you pay and the interest rate you earn are equal, the opportunity cost of paying cash OR financing is equal at the end of the timeframe.  Both options deplete your future wealth creation by the same amount.

So, Who Wins?

In this example, it might seem like it doesn’t matter what you do.

However, let’s turn our attention away from what each person didn’t get, and towards their financial status – what they did get – over time.

If you look at the cash position of each person along the way, you’ll notice something interesting.

The person who financed was able to keep their cash.  Their cash account started with $100,000 the first year and grew upward to  $446,774 in year 30.

The person who paid cash started the first year by immediately dropping their cash account balance down to $0.  Over the next 360 months, they added $537/month back to the account, where it earned interest.  In year 30, they finish with the same $446,774.  It’s important to note that they didn’t just pay into the account the $100,000 principal, but a total of $193,320 of principal and interest.

During all 29 years, 11 months, and 29 days before the 30-year mark, the person who financed had more cash in their account that they could use for emergencies or opportunities.  They had a more secure financial footing all along the way.

Opportunity Cost IMG5

#3) Determine the Best Financing Decisions

The point is this: all capital has a cost.  To be most secure, you want to focus more on what you can earn than on what you pay.

You can reduce your opportunity cost by earning a higher rate on your cash or paying lower rates on financing.  Either will increase the spread and give you a greater advantage. Remember that having cash to use as collateral is one of the surest ways to pay lower rates on financing, so it benefits you in both ways.

To earn a higher return on your cash, consider using high cash value whole life insurance, which grows at rates easily 10X other liquid cash accounts.

Even if you pay a higher interest rate than you can earn, having cash at your disposal gives you control.  You’re in a more comfortable, relaxed position to think more clearly, make better decisions, and enjoy life more.

The Series on Debt

Check out the rest of the articles, podcasts, and videos in the series on debt here:

  1. Why Debt Free Doesn’t Make You Financially Free – TMA 037
  2. The Right Way to Spend Money: Spender, Saver, or Steward? – TMA 040
  3. The Invisible Cost of Financing: Opportunity Cost – TMA 043

Start Creating Wealth Today

The rest is up to you.

You can continue to undervalue the cost of your capital.  You’ll see only the face value of your spending decisions, ignore the opportunity cost, and chisel away at your wealth creation.

Or, you can recognize that all capital has a cost, even your own.  With a new respect for the cost of paying cash, you can step into a new paradigm as a Steward and wealth creator.  You’ll begin valuing your capital, earning a higher rate of return, and maintaining control.

Build Your Time and Money Freedom

To shrink your behind-the-scenes opportunity costs, and maximize your ability to earn uninterrupted compound interest, consider specially designed whole life insurance as a place to store cash.  You’ll earn a guaranteed return much higher than bank rates, as well as highly anticipated dividends, which increase the growth and performance of your cash value. Additionally, you can borrow against your cash value to earn an external rate of return on the same money at the same time, accelerating your wealth.

This strategy may be right for you if you’re already consistently saving cash or have cash reserves, but you’d like your cash to earn more and still be liquid and available to you.

To find out how to utilize this Privatized Banking strategy, contact us to request your Financial Picture Conversation, or email hello@themoneyadvantage.com to share your comments, questions, and feedback with us.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

]]> Opportunity cost, like the submerged portion of an iceberg, is a part of your financial decisions hidden from view.  While odorless, colorless, tasteless, and silent, opportunity cost is a threat to your wealth creation.  
This wealth restrictor is no respecter of persons or purchase types.  Opportunity cost is the tag-along to every financial decision you’ll ever make, whether you finance or pay cash.  Because a dollar is a seed, every time a dollar leaves your economy, it takes along with it the harvest it had the possibility to create in your lifetime.

The repercussions of every choice to use your money continue to echo throughout the rest of your life and legacy.  And just as with icebergs, what’s beneath the surface, is often more important, and much more substantial.


Earlier in the Series on Debt
Previously, in Why Debt Free Doesn’t Make You Financially Free, we demonstrated clearly what debt is and what it isn’t, and that rushing frantically to pay off loans may be one of the riskiest financial moves you can make.

Then, in The Right Way to Spend Money: Spender, Saver, or Steward? we discovered the limitations of both the Spender and the Saver.  We also uncovered the superpowers of the Steward to create wealth through control, access to capital, and uninterrupted compound interest.
The Whole Truth About the Whole Cost of Financing
Now, let’s pull the curtain back to look at the behind-the-scenes cost of financing.  We’ll help you discover the truth, the whole truth, and nothing but the truth, in each method of financing.  You'll see why your purchasing method, more than what you purchase, makes the most difference in your control or loss of control.

We’ll answer:

* What are the real, costs of financing over time?
* What are the real, costs of paying cash over time?
* How do I evaluate the entire cost of my financing options to make the best decisions that give me the most control?

Instead of considering only the face value cost and judging the book by its cover, you’ll gain insight into the opportunity cost of any capital outlay, so you can understand what’s inside each purchasing decision.  Rather than purchasing big ticket items in a way to avoid something out of fear, you’ll see the path to making empowered decisions that increase your wealth potential.  You’ll go from taking mental shortcuts in purchasing that make you lose control, to a system of thinking that puts you in greater control.
Where Opportunity Cost Fits into Your Cash Flow System
Limiting your opportunity cost is just one part of your Survival to Significance Cash Flow System.

The more you reduce the money leaking out of your control today, the smaller your opportunity costs over time.  Consequently, the more wealth you have to protect and turn into streams of income.
#1: The Concept of Opportunity Cost
The Cost and Opportunity Cost of Financing
It’s easy to see that when you pay with a loan or credit, you’ll pay interest.  That’s the part of the financing decision above the surface, the cost of financing at face value.

But over time, you give up a lot more than the dollars of interest.

The bottom half of the iceberg – the opportunity cost of paying interest – is the echo of that expense.  It’s what those monthly payments could have earned for you, had you kept them.  In other words, opportunity cost is what you didn’t get.  The opportunity cost of financing is what you could have done instead if you didn’t have the payments.  It's what those payments could have grown into,]]>
Bruce Wehner & Rachel Marshall clean 36:01 Creating Cash Flow with Real Estate: J. Massey – TMA 042 https://themoneyadvantage.com/creating-cash-flow-with-real-estate-j-massey/ Mon, 27 Aug 2018 09:00:43 +0000 https://themoneyadvantage.com/?p=2841 If you’ve been in our community for a while, chances are, you love cash flow, and you know we do too!  You’re interested in quickly creating income streams with cash-flowing assets.  You want assets you know and control that produce income for you so that your source of income is not restricted to the money you can make from your business while you are working in it.  You likely already have your sights set on advancing your business to one that is self-sustaining, buying other businesses, or investing in real estate. And you’re hungry for ideas that may show you the unseen possibilities that already exist within your own financial situation.  For years, J. Massey has been creating cash flow with real estate and teaching others to do the same.  His stories of loss, success, and the wisdom he’s developed through that experience will inspire you and show you what’s possible in building your own cash-flowing asset portfolio. On a personal note, J. is a hero of mine!  I’ve followed his podcast for several years, where my thinking has been challenged and transformed, and I’ve been introduced to pivotal relationships.  Without even knowing it, J. has been a catalyst to much of my work.  To say I was a bit star struck to interview him is an understatement!  You’ll instantly fall in love with his thinking, his good-natured humor, and his genuine desire to solve problems and create value.  It’s such an honor to share this interview with you.   Where Real Estate Fits in the Cash Flow System To build time and money freedom, you first want as much cash flow as you can get today, by keeping more of the money you make.  Then, you protect what you’ve created.  Finally, you increase your income. Investing in cash-flowing assets like real estate is part of Stage 3 of the Cash Flow System. Who Is J. Massey? A full-time real estate investor, entrepreneur, popular podcast host, author, speaker, coach and all-around problem solver, J. Massey is well known for providing best-in-class advice and strategies to help new and experienced investors the world over. J.’s platform is simple… He invests his time looking for investment opportunities (a.k.a., problems to solve through real estate transactions), closing deals and teaching others how to find and manage similar opportunities, including getting deals at discounts and raising private capital to investing in multi-family properties, getting leads and negotiating the deal. By turning his real-world fieldwork into killer training courses, new and seasoned investors alike learn win-win solutions to solve real estate “problems” for buyers, sellers and other investors. J.’s cashflow-creation strategies are embraced on a global scale by people who want to learn better ways to achieve tangible success in real estate investing, and in his words become “bigger, badder, better real estate investors.” His growing network of “Cashflow Creators” is proof that J. practices what he teaches and teaches what he practices. J. is currently a landlord, lender, consultant, educator and highly sought mentor. He currently owns hundreds of units of properties and has completed hundreds more real estate transactions across several states. J.’s publishing credits include a book he co-authored titled “3 Money-Raising Questions.” In 2014, he released his highly acclaimed book, Cashflow Diary: 10 Steps to Creating Wealth in ANY Economy! Conversation Highlights (Partial Transcript) The Need to Take Ownership of Your Financial Destiny [20:50] The number one problem that every person literally on this planet right now has, is the fact that we do not have control over the value of the currency that we are currently using. We've got to level up our financial IQ to address that problem. Here's a very painful but true lesson: the cavalry is not coming. No white horse is coming over the mountain to rescue you financially. I found it out the hard way long before Obama was handing out bailouts…... If you’ve been in our community for a while, chances are, you love cash flow, and you know we do too!  You’re interested in quickly creating income streams with cash-flowing assets.  You want assets you know and control that produce income for you so that your source of income is not restricted to the money you can make from your business while you are working in it.  You likely already have your sights set on advancing your business to one that is self-sustaining, buying other businesses, or investing in real estate. And you’re hungry for ideas that may show you the unseen possibilities that already exist within your own financial situation.

For years, J. Massey has been creating cash flow with real estate and teaching others to do the same.  His stories of loss, success, and the wisdom he’s developed through that experience will inspire you and show you what’s possible in building your own cash-flowing asset portfolio.

On a personal note, J. is a hero of mine!  I’ve followed his podcast for several years, where my thinking has been challenged and transformed, and I’ve been introduced to pivotal relationships.  Without even knowing it, J. has been a catalyst to much of my work.  To say I was a bit star struck to interview him is an understatement!  You’ll instantly fall in love with his thinking, his good-natured humor, and his genuine desire to solve problems and create value.  It’s such an honor to share this interview with you.

 

Where Real Estate Fits in the Cash Flow System

To build time and money freedom, you first want as much cash flow as you can get today, by keeping more of the money you make.  Then, you protect what you’ve created.  Finally, you increase your income.

Investing in cash-flowing assets like real estate is part of Stage 3 of the Cash Flow System.

Who Is J. Massey?

A full-time real estate investor, entrepreneur, popular podcast host, author, speaker, coach and all-around problem solver, J. Massey is well known for providing best-in-class advice and strategies to help new and experienced investors the world over.

J.’s platform is simple… He invests his time looking for investment opportunities (a.k.a., problems to solve through real estate transactions), closing deals and teaching others how to find and manage similar opportunities, including getting deals at discounts and raising private capital to investing in multi-family properties, getting leads and negotiating the deal.

By turning his real-world fieldwork into killer training courses, new and seasoned investors alike learn win-win solutions to solve real estate “problems” for buyers, sellers and other investors. J.’s cashflow-creation strategies are embraced on a global scale by people who want to learn better ways to achieve tangible success in real estate investing, and in his words become “bigger, badder, better real estate investors.” His growing network of “Cashflow Creators” is proof that J. practices what he teaches and teaches what he practices.

J. is currently a landlord, lender, consultant, educator and highly sought mentor. He currently owns hundreds of units of properties and has completed hundreds more real estate transactions across several states.

J.’s publishing credits include a book he co-authored titled “3 Money-Raising Questions.” In 2014, he released his highly acclaimed book, Cashflow Diary: 10 Steps to Creating Wealth in ANY Economy!

Conversation Highlights (Partial Transcript)

The Need to Take Ownership of Your Financial Destiny

[20:50] The number one problem that every person literally on this planet right now has, is the fact that we do not have control over the value of the currency that we are currently using. We’ve got to level up our financial IQ to address that problem.

Here’s a very painful but true lesson: the cavalry is not coming. No white horse is coming over the mountain to rescue you financially.

I found it out the hard way long before Obama was handing out bailouts… No one came to bail out my wife and I.  We had to go figure it out.  To provide value, fundamentally, in a capitalistic economy, is driven by someone’s willingness and ability to solve problems for somebody else.

The Cash Flow Quadrant: Business Owners Solve Problems

[23:49] Robert Kiyosaki developed this concept known as the cashflow quadrant. It’s a way of looking at how you earn your money.  There are four basic categories.  In the upper left, if you just draw a cross, in the upper left corner, you’ve got the employee. Bottom left, self-employed; upper right, business owner; and the lower right is going to be the investor.

The Exchange of Value Needed for Each Type of Income-Earner

[24:15] What’s interesting to me is that the economy works on the basis of supply and demand.

For example, the employee is supplying time, skill set and knowledge, etc. But, to be an employee, they need a job. And that job is typically something that they take from the economy.

The self-employed person is someone who usually has more specialized knowledge in one particular area. They then offer that to the marketplace. And the person to whom they’re offering their service isn’t typically the average person. An attorney, or a mortgage broker, or any type of job that has a license, is looking for some person to deliver that service to.

The business owner owns a system that produces value for the entire marketplace.  That’s literally their specialty to own and control the system that produces something of value.

To run that system, it usually needs some sort of grease, currency in this particular case. That typically comes from the investor who’s leveraging their currency to get more money.

The Business Owner Solves Problems for Everyone Else

[25:59] For a business to run, the business needs employees, and therefore they provide jobs. The business needs an attorney to look over their shoulder, and therefore the attorney now has a client.  And the investor needs a place to put their capital, and the business is the very thing that can produce more capital for them.

At the center is the almighty business owner.

The challenge that we’ve been experiencing is that we’ve created an imbalance in the supply and demand curve.  There’s an overabundance of employees who take jobs, and there’s not enough people who create them, i.e., business owners and entrepreneurs.  We need more business owners and entrepreneurs innovating and thinking of the next best thing for all of us to have a bigger, better lifestyle.

What to Do with An Expensive Mistake

[33:49] … it’s not that it happened. That’s a massive thing. It’s what do you do now?

Do you leverage that lesson and become better, or do you allow that lesson to topple you and you become bitter?  That, in and of itself, is a lot of work.

If you are willing to take those hits and lessons and become better, what’s on the other side of that is you become a much bigger service to society. And you’re able to provide even more jobs and more housing and do more good for more people and help more entrepreneurs move forward.

What J. Learned About Mutual Funds by Investing in Cell Phone Towers

[35:46] And at the end of the day, the basic premise is that every one of your expenses is somebody else’s income.

Many of us have a device in our pockets, a cell phone of some kind. And instead of actually owning just the device, what if you own something that they needed: the cell phone tower…

That’s kind of how that thought process started. And all along that journey into owning a cell phone tower, I just discovered so many interesting things.

The Mutual Fund’s Money Must Be Invested

[36:31] When you and I, or anyone who chooses to use a traditional 401k, or Roth 401k, we give those funds over to an entity. And then that entity begins to go about their job, their mandate by prospectus, to find a return for all of the people who are making that contribution every two weeks.

They’re really good at collecting capital and doing risk evaluation and those types of things.  But that person isn’t also good at running a deal. That money has to go somewhere …

That mutual fund manager is looking for great business owners who can give them a higher return on their capital. One of the ways that they do this to buy streams of income.

I like that a lot because it can help a lot of business owners build their business bigger, better, faster.

Now, understand this in an inflationary economy. More money today is better than money tomorrow.

About Cell Phone Tower Contracts

[38:26] Here’s what happens if I buy a cell phone tower. The cell phone company pays the owner a monthly rent, let’s say that monthly rent is $1,500. Twelve months of rent is $18K.  Those contracts typically have a period of which they’re going to guarantee that can be as short as five years, and then they may have five, 10- or 20-year renewal periods that can be canceled at any time with just a 30-day notice. This was my contract: $1500 a month was coming, but we were into this period to where they could cancel it anytime with the 30-day notice.

Even though it says that they’re going to be around for 20 plus years, that doesn’t mean that they will.  I saw that as a risk because I’m the one holding the lease. I don’t know when they’re going to decide that they no longer want to rent this particular tower and then I’m left with a tower I don’t really want to own.

Both Parties’ Problems Put J. On the Winning Side of the Transaction

[40:00] I started searching and asking questions about the possibility of selling a cell phone tower, and then several hedge funds and institutions began contacting us.  As it turns out, one of the things that they do is they will take a monthly stream of income and give the leaseholder a lump sum payment today.

To keep the math simple, here’s what happened: my $1,500/month got turned into a little more than $225,000 today.

They gave up their income, and I gave them the income stream. But who did I really give it to? Who really took that risk?  They collected the $225K from a lot of 401k’s across the nation.

If that cell phone company decides that they’re done, whether they recoup their $225K or not, they’re just going to report that the deal did not go well.

If you had a choice between $1,500 a month for the next 20 years, or $225K today, take the $225K today.  Because what can you turn that $225K into? A lot more than $1,000 a month.

The Opportunity for Entrepreneurs

[42:22] If you just made another 401k contribution, understand how it’s funded.  Those mutual funds are finding entrepreneurs who are out there making things happen, and then they’re giving those funds to entrepreneurs to go out there and do great things.Creating Cash Flow with Real Estate, J. Massey

The person who collects the hedge funds, the 401k’s, the mutual funds, has a problem. Their problem is they have too much money, and now they got to do something with it.

They can’t just collect all that money every two weeks and do nothing with it.  They have to find a place for it to work.  That is why they do these types of transactions.  They’re good at collecting the money and evaluating risk, but they need whatever they buy to be easy to manage.

That is the challenge, but also the opportunity for those who are willing to put in a little bit of hustle (or a lot of hustle).

Why Short-Term Rentals Are the Highest and Best Use of Lots of Real Estate Right Now

[44:50] Now, just because you are familiar with the word Airbnb, do not believe that you understand what they are, who they are, or what the business model I’m about to say is.

The Surprising Opportunity

[45:30] Many people would do better if they let someone else stay in their home just on the weekend than by going to work and stressing themselves out to make the same mortgage payment.

That same equation exists in so many places across the country. It is not uncommon for just two weekends of rental to make most people’s rent and or mortgage payment.

This type of business is an export.  We have a trade deficit.  Money comes from outside of your area for a person to come to enjoy your area. And we need more trade, more businesses that can help us balance the whole trade equation. This is definitely one way of making that happen.

It also is inflation resistant. That’s simply because, as the cost of anything goes up, the daily rate also goes up.

Make Money with Something You’re Already Paying For

[46:59] And it’s something that utilizes space you’re already paying for anyway.

But how often are you actually at home? Just think about how much time you spend at home versus how much time you spend outside the home. And if you ever do a calculation of what it costs you on a daily basis just for the minutes you’re at home, you’ll probably freak out say I need to figure out how to do something completely different.

The opportunity has always been there. It’s just that technology has come into place to make it easy to find the customer who needs a space and to match them with the person who has the space.

If you’re willing to go out there and do the work, it’s some of the highest returns I have ever seen.

I’ve had some of our newest students be able to turn profits in 30 days and get 100% their money back within six to nine months.  We’ve been doing it now for a couple of years, and we have students all across the globe, from many different jurisdictions. Canada, South America, Russia, the good Korea, and the stories are the same over and over and over again.

The Easiest Entry Point in Real Estate

[49:00] It is the easiest entry point in real estate. And it gives us that little win along the way to keep focused on those long-term goals. And you have so many wins inside this business model while you get to have fun and meet new people and provide clean, safe, affordable housing to people in a completely different fashion.

It becomes a down payment generation engine.  This can be your goose that keeps laying down payment eggs so you buy as much real estate as you want.

Privatized Banking with Whole Life Insurance

[50:10] As I build that short-term rental portfolio, it creates a significant amount of excess cash or capital.

I then store that excess cash in a vehicle that allows me to grow that capital tax-free or tax-deferred.  Then I can take that capital back out without having to pay taxes on it again.

In essence, I’m using that as the beginning of the down payment, but also using it to build what I now affectionately term the “family bank.”

If you’ve felt like you may have been excluded in the past from being able to have enough cash to build your own family bank, here’s a business strategy that we’ve had people start for as little as $500 (always bet on about $25 per square foot).

If I can just find a way to make another thousand dollars a month without contributing another thousand hours, then I can make this work.

At the end of the day, we need a way to own and control the means of production.  The only way to do that is with real assets that have intrinsic value. And being able to provide clean, safe, affordable housing is one of those.

Other Topics Discussed

  • The rags to riches story that catapulted J. into real estate
  • J.’s path of learning and action in real estate, including wholesaling, single-family houses, notes, commercial property, raising private capital, cell phone towers, and short-term rentals
  • Solving problems for others makes you wealthy
  • How to solve problems for all the stakeholders in real estate, including the investor, seller, buyer, the title insurance provider, and the person who needs clean, safe, affordable housing
  • If you’re a real estate investor, you’re a business owner, and why you need to build a system that’s independent of you
  • Bank stability vs. life insurance company stability:
  • J.’s work to teach and educate nonprofits to leverage real estate to create self-sustaining income
  • J.’s desire to own a sports team along with like-minded people he enjoys hanging out with is his motivation to educate and develop enough six- and seven-figure students who can contribute to the purchase price of owning a sports team and getting to hang out with like-minded people

Connect with J. Massey

Get the Cash Flow Diary podcast at Cashflowdiary.com/podcast.

If you’re considering short-term rentals, visit Cashflowdiary.com/star for J.’s training on how this business model works, why it works right now, and how it’s helping people leave their job in record time and in record numbers.

To help you move forward in your investing career, get J.’s trainings and book, Cashflow Diary: 10 Steps to Creating Wealth in Any Economy! here.

Create Your Time and Money Freedom

If you would like to create a comprehensive strategy to most effectively store your capital where you have safety, liquidity, and growth AND use it to invest in cash-flowing assets to build Time and Money Freedom, contact us to request your Financial Picture Conversation.

This conversation will help you maximize your wealth today and, in the future, by:

  • Discovering money flowing out of your control
  • Strategizing ways to have more money flowing into your control
  • With the End Result being more money to utilize during your lifetime, and more to give to future generations.

Email us at hello@themoneyadvantage.com to share your comments, questions, and feedback with us.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

]]>
If you’ve been in our community for a while, chances are, you love cash flow, and you know we do too!  You’re interested in quickly creating income streams with cash-flowing assets.  You want assets you know and control that produce income for you so t... cash flow, and you know we do too!  You’re interested in quickly creating income streams with cash-flowing assets.  You want assets you know and control that produce income for you so that your source of income is not restricted to the money you can make from your business while you are working in it.  You likely already have your sights set on advancing your business to one that is self-sustaining, buying other businesses, or investing in real estate. And you’re hungry for ideas that may show you the unseen possibilities that already exist within your own financial situation.

For years, J. Massey has been creating cash flow with real estate and teaching others to do the same.  His stories of loss, success, and the wisdom he’s developed through that experience will inspire you and show you what’s possible in building your own cash-flowing asset portfolio.

On a personal note, J. is a hero of mine!  I’ve followed his podcast for several years, where my thinking has been challenged and transformed, and I’ve been introduced to pivotal relationships.  Without even knowing it, J. has been a catalyst to much of my work.  To say I was a bit star struck to interview him is an understatement!  You’ll instantly fall in love with his thinking, his good-natured humor, and his genuine desire to solve problems and create value.  It’s such an honor to share this interview with you.

 


Where Real Estate Fits in the Cash Flow System
To build time and money freedom, you first want as much cash flow as you can get today, by keeping more of the money you make.  Then, you protect what you’ve created.  Finally, you increase your income.

Investing in cash-flowing assets like real estate is part of Stage 3 of the Cash Flow System.
Who Is J. Massey?
A full-time real estate investor, entrepreneur, popular podcast host, author, speaker, coach and all-around problem solver, J. Massey is well known for providing best-in-class advice and strategies to help new and experienced investors the world over.

J.’s platform is simple… He invests his time looking for investment opportunities (a.k.a., problems to solve through real estate transactions), closing deals and teaching others how to find and manage similar opportunities, including getting deals at discounts and raising private capital to investing in multi-family properties, getting leads and negotiating the deal.

By turning his real-world fieldwork into killer training courses, new and seasoned investors alike learn win-win solutions to solve real estate “problems” for buyers, sellers and other investors. J.’s cashflow-creation strategies are embraced on a global scale by people who want to learn better ways to achieve tangible success in real estate investing, and in his words become “bigger, badder, better real estate investors.” His growing network of “Cashflow Creators” is proof that J. practices what he teaches and teaches what he practices.

J. is currently a landlord, lender, consultant, educator and highly sought mentor. He currently owns hundreds of units of properties and has completed hundreds more real estate transactions across several states.

J.’s publishing credits include a book he co-authored titled “3 Money-Raising Questions.” In 2014, he released his highly acclaimed book, Cashflow Diary: 10 Steps to Creating Wealth in ANY Economy!
Conversation Highlights (Partial Transcript)
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Bruce Wehner & Rachel Marshall clean 1:02:36
Staying Positive by Looking Backward (Reviewed) – TMA 041 https://themoneyadvantage.com/staying-positive-by-looking-backward/ Mon, 20 Aug 2018 09:00:08 +0000 https://themoneyadvantage.com/?p=2822 Dan Sullivan shares a profound perspective on goal-setting, exponential vision, and staying energized to continue progressing, in his article Staying Positive by Looking Backward.  We’re sharing this article, along with our experience of using these concepts, to help fortify your abundance mindset.  We know that developing a healthy, positive perspective is the secret weapon of the entrepreneur.  It energizes and encourages you, helping you build the life and business you love. Introduction to Dan Sullivan and Strategic Coach [2:14 – Bruce] Dan Sullivan has been coaching entrepreneurs since 1979. He says that you need to work on your business, not just in your business. Dan is a master thinker in thinking about your thinking. Looking backward is a way to not only think about your life and what you want to achieve but why you think about things in a certain way and how you want to achieve them. The 10 Times Multiplier [3:15 – Bruce] Dan is a big believer in what he calls the 10 times multiplier. He says that you grow exponentially when you look backward. Looking backward allows you to see how you were at one point, brings you clarity, and helps you move forward. You might be thinking that there's no way you can 10 times your income.  Maybe you’re already making, let's just say $200,000, and you don’t see the way to get to the $2 million mark. He says to think back to when you were only making $20,000. You increased your income 10 times, from $20K to $200K.  You can use that same growth pattern to 10 times your income from $200K to $2M. Why Looking Backward Helps You Stay Positive [4:25 – Rachel] When you set goals, instead of measuring the distance you have left to go before you arrive, look back at how far you've come. Looking forward to how far you still have yet to go, can be really discouraging. But when we look backward, we realize that we've done a lot already. That same person that we were that created that progress and advancement in the past is the same person that we are now who will carry that advancement and progress forward. 25-Year Vision, 90-Day Goals [5:12 - Bruce] Dan always says, have a 25-year vision, which some people would call a goal, but then look at it in 90-day increments. You're constantly looking at what you have achieved in the past 90 days, and that helps you stay motivated. If you look forward, think about how much further you have until the goal, that demotivates and discourages you, and you get down on yourself. But if you look at just 90 days, you’ll see what you accomplished in 90 days. 80% Perfect [5:50 – Bruce] Dan also has an 80% rule, where he says to get something 80% done, and then pass it on to somebody else. And then when they do it 80% of the way, all of a sudden, the project is 96% done. This keeps you motivated by also having fresh things to do, instead of trying to perfect that 80%. Goal-Setting [6:10 – Bruce] You have to set achievable goals, but your goals also have to be measurable. There's not a right way or wrong way to set goals and to measure your progress. If you only use the ideal as your goal, you're going to set yourself up for disappointment.  Instead, use the ideal as a vision. Have a 25-year vision of a bigger and better future, but set goals every 90 days for what you can actually achieve. The key to staying positive, inspired and motivated is looking backward.  It can inspire you to stay motivated in going forward. A Continually-Growing Vision [08:18 – Rachel] As entrepreneurs, we move forward and check one thing off the to-do list.  Then, all of a sudden, you have this bigger, better future that you're reaching for. That 25-year vision is a moving target out there that has expanded, and it's even bigger than it was before. And that's good, amazing in fact, that we have this ability to be flexible and continue to expand as we grow. But at the same time, that means we’ll never reach that vision because, Dan Sullivan shares a profound perspective on goal-setting, exponential vision, and staying energized to continue progressing, in his article Staying Positive by Looking Backward.

We’re sharing this article, along with our experience of using these concepts, to help fortify your abundance mindset.  We know that developing a healthy, positive perspective is the secret weapon of the entrepreneur.  It energizes and encourages you, helping you build the life and business you love.

Introduction to Dan Sullivan and Strategic Coach

[2:14 – Bruce] Dan Sullivan has been coaching entrepreneurs since 1979. He says that you need to work on your business, not just in your business.

Dan is a master thinker in thinking about your thinking.

Looking backward is a way to not only think about your life and what you want to achieve but why you think about things in a certain way and how you want to achieve them.

The 10 Times Multiplier

[3:15 – Bruce] Dan is a big believer in what he calls the 10 times multiplier. He says that you grow exponentially when you look backward. Looking backward allows you to see how you were at one point, brings you clarity, and helps you move forward.

You might be thinking that there’s no way you can 10 times your income.  Maybe you’re already making, let’s just say $200,000, and you don’t see the way to get to the $2 million mark. He says to think back to when you were only making $20,000. You increased your income 10 times, from $20K to $200K.  You can use that same growth pattern to 10 times your income from $200K to $2M.

Why Looking Backward Helps You Stay Positive

[4:25 – Rachel] When you set goals, instead of measuring the distance you have left to go before you arrive, look back at how far you’ve come.

Looking forward to how far you still have yet to go, can be really discouraging. But when we look backward, we realize that we’ve done a lot already.

That same person that we were that created that progress and advancement in the past is the same person that we are now who will carry that advancement and progress forward.

25-Year Vision, 90-Day Goals

[5:12 – Bruce] Dan always says, have a 25-year vision, which some people would call a goal, but then look at it in 90-day increments.

You’re constantly looking at what you have achieved in the past 90 days, and that helps you stay motivated. If you look forward, think about how much further you have until the goal, that demotivates and discourages you, and you get down on yourself. But if you look at just 90 days, you’ll see what you accomplished in 90 days.

80% Perfect

[5:50 – Bruce] Dan also has an 80% rule, where he says to get something 80% done, and then pass it on to somebody else. And then when they do it 80% of the way, all of a sudden, the project is 96% done.

This keeps you motivated by also having fresh things to do, instead of trying to perfect that 80%.

Goal-Setting

[6:10 – Bruce] You have to set achievable goals, but your goals also have to be measurable. There’s not a right way or wrong way to set goals and to measure your progress.

If you only use the ideal as your goal, you’re going to set yourself up for disappointment.  Instead, use the ideal as a vision.

Have a 25-year vision of a bigger and better future, but set goals every 90 days for what you can actually achieve.

The key to staying positive, inspired and motivated is looking backward.  It can inspire you to stay motivated in going forward.

A Continually-Growing Vision

[08:18 – Rachel] As entrepreneurs, we move forward and check one thing off the to-do list.  Then, all of a sudden, you have this bigger, better future that you’re reaching for.

That 25-year vision is a moving target out there that has expanded, and it’s even bigger than it was before. And that’s good, amazing in fact, that we have this ability to be flexible and continue to expand as we grow.

But at the same time, that means we’ll never reach that vision because, by the time we get there, we’re going to have a bigger vision.

Action-Oriented Goals, Not Results-Oriented Goals

[9:00 – Rachel] I remember when I first started in business, I had a goal to make $100,000 in the first three months.Staying Positive By Looking Backward

And that does not usually happen when you start a business, and it certainly did not happen for us. Our income was significantly lower than that. And we had to decide if we should even continue moving forward in business.

I realized that instead of having a results-based goal, like a dollar amount of income, I needed to have my goal be something I could control.  I changed my perspective.  Instead of having the outcome be my goal, I set a goal that was an action that I do.

I’m not in control of the dollar amount that comes in, but I am in control of the value that I provide and what I create.

So instead of a goal to make X, I set action-oriented goals for what I will do.

Why Numerical Goals Are Limiting

[10:25 – Bruce] I just want to make this very clear, Dan has never said this that I know of, but I’ve heard other people say that goals in the form of a number are limiting.

Human nature will say, “I’m going to make $100,000 in the first three months of business.”  And you do it.

Suddenly, human nature takes over and says, “Well, I don’t have to do anything for the next two or three months. Because, you know, I reached my goal.”

Instead, if you have a vision, you say: “I’m going to continue to add value into people’s lives, and I’m going to grow my business and bring as many people on as possible.”

Goals can be very, very limiting.

The Four Benefits of Looking Backward Instead of Forward

1) You Have a Sense of Accomplishment

You gain a real sense of accomplishment that keeps you in the positive zone and appreciating your actual achievements and improvements rather than perpetually striving for unachievable perfection.

2) You Have A New Way of Viewing Your Past

You acquire the ability to look at your past achievements through a new lens and appreciate the real progress you made and goals you achieved. Past progress that may have seemed disappointing to you when you were measuring forward instead of backward is now transformed in your mind so you can see your achievements more clearly, giving you renewed confidence now.

[13:05 – Bruce] There’s never failure. Instead, you’re increasing your capabilities.

You may have heard that there’s no failure, just feedback.  Well, what do you do with that feedback? You increase your capability to handle that situation in the future or think of different ways to solve a particular problem.

[14:35 – Rachel] If you had a goal to make a million dollars, but instead, you only made $700,000, that’s 700,000 more than you probably would have made if you had no goal at all. Instead, look back and say, “That’s $700,000 of progress!” You may have failed to meet the marker that you put in place, but you didn’t fail because you had all that growth in the process.

3) You Increase Your Confidence

This renewed confidence from knowing that you made progress in the past has you staying positive and optimistic that you can do it again in the future and achieve even bigger goals, especially now that you know how to measure properly going forward.

[15:50 – Rachel] I love the idea that who I am, as a person, progresses. Therefore, I am a person who progresses.  It’s who I am.  My nature is to progress. Then as I move into the future, I will continue to progress. That’s a powerful perspective for being able to achieve anything in the future.

4) You Have a Strategy for Setting Goals

You have a new understanding of the purpose of your ideals and how to use them to illuminate your path and set achievable goals. Your ideals can keep growing and get even more exciting and motivating, allowing you to set even bigger goals in the future.

[17:10 – Rachel] Having a big vision is something that motivates and compels you.  It’s a reason to wake up in the morning. It’s a purpose in life.  If your vision for your life was just to be a minuscule bit better than you are today, that could potentially produce complacency.

For me, that’s not as exciting. I love the excitement of having a big vision.

Flip the Switch to Stay Positive

And if you find yourself striving after ideals or getting in a negative zone by looking at how far you have left to go to achieve your vision, just remind yourself to flip the switch. It’s a mindset shift that takes practice but in time will become a habit.

[18:15 – Bruce] If you surround yourself with this positive thinking, and you listen to how other people have moved forward with their businesses, you will create a 25-year vision, and be able to move forward by looking backward.

[19:30 – Rachel] Think about your vision.  Is it bigger than your current reality?  Use this to help you stay positive and motivated.

A Financial Axle to Support Your 10 Times Life Vision

If you would like to secure a financial axle that will bear the load of your 10 times life vision, contact us too request a financial picture conversation.

We’ll help you strategically create certainty and stability so that no matter what happens in your life, you will transcend your current life circumstances.

This FREE conversation will help you maximize your wealth today and, in the future, by:

  • Discovering money flowing out of your control
  • Strategizing ways to have more money flowing into your control
  • With the End Result being more money to utilize during your lifetime, and more to give to future generations.

Go out there and do great things. Expand your vision and stay positive by looking backward.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

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Dan Sullivan shares a profound perspective on goal-setting, exponential vision, and staying energized to continue progressing, in his article Staying Positive by Looking Backward.  We’re sharing this article, Staying Positive by Looking Backward.

We’re sharing this article, along with our experience of using these concepts, to help fortify your abundance mindset.  We know that developing a healthy, positive perspective is the secret weapon of the entrepreneur.  It energizes and encourages you, helping you build the life and business you love.


Introduction to Dan Sullivan and Strategic Coach
[2:14 – Bruce] Dan Sullivan has been coaching entrepreneurs since 1979. He says that you need to work on your business, not just in your business.

Dan is a master thinker in thinking about your thinking.

Looking backward is a way to not only think about your life and what you want to achieve but why you think about things in a certain way and how you want to achieve them.
The 10 Times Multiplier
[3:15 – Bruce] Dan is a big believer in what he calls the 10 times multiplier. He says that you grow exponentially when you look backward. Looking backward allows you to see how you were at one point, brings you clarity, and helps you move forward.

You might be thinking that there's no way you can 10 times your income.  Maybe you’re already making, let's just say $200,000, and you don’t see the way to get to the $2 million mark. He says to think back to when you were only making $20,000. You increased your income 10 times, from $20K to $200K.  You can use that same growth pattern to 10 times your income from $200K to $2M.
Why Looking Backward Helps You Stay Positive
[4:25 – Rachel] When you set goals, instead of measuring the distance you have left to go before you arrive, look back at how far you've come.

Looking forward to how far you still have yet to go, can be really discouraging. But when we look backward, we realize that we've done a lot already.

That same person that we were that created that progress and advancement in the past is the same person that we are now who will carry that advancement and progress forward.
25-Year Vision, 90-Day Goals
[5:12 - Bruce] Dan always says, have a 25-year vision, which some people would call a goal, but then look at it in 90-day increments.

You're constantly looking at what you have achieved in the past 90 days, and that helps you stay motivated. If you look forward, think about how much further you have until the goal, that demotivates and discourages you, and you get down on yourself. But if you look at just 90 days, you’ll see what you accomplished in 90 days.
80% Perfect
[5:50 – Bruce] Dan also has an 80% rule, where he says to get something 80% done, and then pass it on to somebody else. And then when they do it 80% of the way, all of a sudden, the project is 96% done.

This keeps you motivated by also having fresh things to do, instead of trying to perfect that 80%.
Goal-Setting
[6:10 – Bruce] You have to set achievable goals, but your goals also have to be measurable. There's not a right way or wrong way to set goals and to measure your progress.

If you only use the ideal as your goal, you're going to set yourself up for disappointment.  Instead, use the ideal as a vision.

Have a 25-year vision of a bigger and better future, but set goals every 90 days for what you can actually achieve.

The key to staying positive, inspired and motivated is looking backward.  It can inspire you to stay motivated in going forward.
]]>
Bruce Wehner & Rachel Marshall clean 22:35
The Right Way to Spend Money: Spender, Saver, or Steward? – TMA 040 https://themoneyadvantage.com/spend-money-spender-saver-steward/ Mon, 13 Aug 2018 09:00:47 +0000 https://themoneyadvantage.com/?p=2789 Alexander Pope said, “To err is human, to forgive divine.” Financially speaking, it would be more accurate to say, “to spend money is human, to create wealth divine.”  No one ever needed a lesson in how to buy things. In fact, with no restraint, we manage quite well to find plentiful ways to spend money.  How you spend money has the power to stunt or accelerate your wealth creation. Find out whether your purchase personality is a Spender, a Saver, or a Steward.  Learn the practical action steps to up-level your purchasing strategy to keep and control more of your money, starting from where you’re at. To help you spend money the right way, we’ll answer: What are my options for how I spend money? Am I a spender, a saver, or a steward? What are the impacts of each? What action steps can I take from where I am to spend money better and increase my future cash flow? Understanding your purchase personality will move you from impulse buying and scarcity-based decision-making to abundance-based wealth creation.  Instead of never getting ahead, you’ll spend money knowing that you’re increasing your wealth potential.  Rather than being out of control, you’ll gain control, options, and increased confidence in your financial future.   It's Not So Much What You Spend, It’s How You Spend It When you review your monthly cash flow, you’ll notice circumstances that call for you to go above and beyond your normal monthly spending.  These major purchases may be to maintain your lifestyle or improve it.  They may be emergencies, or opportunities, or just for fun. Whether it’s buying your next rental property, a business acquisition or expansion, buying a new car, putting tires on the old one, remodeling your kitchen, paying for your daughter’s wedding, your son’s college education, major purchases are outside your monthly spending plan and require additional thought and planning. The way you pay for these expenses has more significant impacts on your current and future cash flow than you realize. How you purchase makes a world of difference in your control or loss of control. So how will you pay for these future major purchases? You can know the best way, speculate, guess, dream, and even commit, but the best way to predict your future decision-making is to look honestly at your past decisions to figure out what mindset you used to arrive at where you are today. Where Spending Money Fits into Your Cash Flow System Spending money is just one part of the Survival to Significance Cash Flow System. How you spend money is a result of your mindset.  When you spend money the right way, you keep and control more money today, giving you more to save and invest in cash flowing assets. What’s Your Purchase Personality? Use this simple quiz to help you discover your purchase personality. Do you put money into savings each month? If no, you are a Spender. If yes, continue. Think back to your last large purchase, maybe it was an investment property, car, boat, remodel, wedding, vacation.  Did you have enough in savings to have the option to pay cash? If no, you may be a Spender. If yes, continue. Did you choose to pay cash? If yes, you might be a Saver. If no, continue. Did you keep your cash and finance the purchase? If yes, you may be a Steward. The Three Ways to Spend Money Two of the most common perspectives, which the majority of people ascribe to, are rooted in scarcity.  The third, rare perspective is from a place of abundance. Scarcity: a mindset and position rooted in the fear of lack, limits, and “not enough” The Spender The Spender's desire to enjoy money and life is right and good; however, their motivation is fear of not enjoying life.  They often have an unruly appetite to spend.  It could be said that they work so that they have money to spend.  They spend everything they make each month in pursuit of the highest quality of life they can obtain immediately. Alexander Pope said, “To err is human, to forgive divine.” Financially speaking, it would be more accurate to say, “to spend money is human, to create wealth divine.”  No one ever needed a lesson in how to buy things. In fact, with no restraint, we manage quite well to find plentiful ways to spend money.  How you spend money has the power to stunt or accelerate your wealth creation. Find out whether your purchase personality is a Spender, a Saver, or a Steward.  Learn the practical action steps to up-level your purchasing strategy to keep and control more of your money, starting from where you’re at.

To help you spend money the right way, we’ll answer:

  • What are my options for how I spend money?
  • Am I a spender, a saver, or a steward?
  • What are the impacts of each?
  • What action steps can I take from where I am to spend money better and increase my future cash flow?

Understanding your purchase personality will move you from impulse buying and scarcity-based decision-making to abundance-based wealth creation.  Instead of never getting ahead, you’ll spend money knowing that you’re increasing your wealth potential.  Rather than being out of control, you’ll gain control, options, and increased confidence in your financial future.

 

It’s Not So Much What You Spend, It’s How You Spend It

When you review your monthly cash flow, you’ll notice circumstances that call for you to go above and beyond your normal monthly spending.  These major purchases may be to maintain your lifestyle or improve it.  They may be emergencies, or opportunities, or just for fun. Whether it’s buying your next rental property, a business acquisition or expansion, buying a new car, putting tires on the old one, remodeling your kitchen, paying for your daughter’s wedding, your son’s college education, major purchases are outside your monthly spending plan and require additional thought and planning.

The way you pay for these expenses has more significant impacts on your current and future cash flow than you realize.

How you purchase makes a world of difference in your control or loss of control.

So how will you pay for these future major purchases?

You can know the best way, speculate, guess, dream, and even commit, but the best way to predict your future decision-making is to look honestly at your past decisions to figure out what mindset you used to arrive at where you are today.

Where Spending Money Fits into Your Cash Flow System

Spending money is just one part of the Survival to Significance Cash Flow System.

How you spend money is a result of your mindset.  When you spend money the right way, you keep and control more money today, giving you more to save and invest in cash flowing assets.

What’s Your Purchase Personality?

Use this simple quiz to help you discover your purchase personality.

  1. Do you put money into savings each month?
    If no, you are a Spender.
    If yes, continue.
  2. Think back to your last large purchase, maybe it was an investment property, car, boat, remodel, wedding, vacation.  Did you have enough in savings to have the option to pay cash?
    If no, you may be a Spender.
    If yes, continue.
  3. Did you choose to pay cash?
    If yes, you might be a Saver.
    If no, continue.
  4. Did you keep your cash and finance the purchase?
    If yes, you may be a Steward.

The Three Ways to Spend Money

Two of the most common perspectives, which the majority of people ascribe to, are rooted in scarcity.  The third, rare perspective is from a place of abundance.

Scarcity: a mindset and position rooted in the fear of lack, limits, and “not enough”

The Spender

The Spender’s desire to enjoy money and life is right and good; however, their motivation is fear of not enjoying life.  They often have an unruly appetite to spend.  It could be said that they work so that they have money to spend.  They spend everything they make each month in pursuit of the highest quality of life they can obtain immediately.

This is the normal, natural path of least resistance, and the condition of every person who doesn’t have a recognized intention otherwise.

Because their income is consumed as it is earned, they do not have savings habits and do not build up savings. A Spender can’t earn interest, because they have no accumulated savings with which to earn it.

This modus operandum creates significant pressure when major expenses arise.  As expenses creep up that are larger than monthly income, the Spender’s only choice is to finance the purchase.  Because they have no collateral to back the loan and are least likely of all purchasers to be able to repay the loan, they are among the highest risk to the lender. Consequently, they usually pay the highest rates of interest.

The Saver

The Saver’s desire to save money is motivated by the fear of running out of money.  They are compelled by the feeling of never enough, and in the extreme are hoarders.  The Saver has conquered their basic impulses and improved upon their discipline to master delayed gratification.  They have consistent savings habits that allow them to create substantial cash reserves.

Because they have cash, they earn interest.

Savers save money to avoid “debt,” usually because they hate paying interest.  Instead of financing purchases, they opt to pay cash.

Rather than borrowing from a lender, Savers are essentially borrowing from themselves, with the intention to make payments back to themselves to repay the used savings.

The Similarities of the Spender and the Saver

While saving may seem like an advanced way to buy stuff, the Spender and the Saver are two sides of the same coin, with almost all of the same problems.

Both Have a Scarcity Mindset

Unbeknownst to most Spenders, their spending originates from a place of fear.  They fear not enjoying life fully, missing out, or being left behind.

The Saver has different fears. They are afraid of running out of money, losing money, and paying interest.  The aversion to paying interest and fear of “debt” are driving motivations for many of their financial choices.

Both make choices to avoid something negative, rather than to embrace something positive.  This scarcity mindset, in either form, is shrouded in limitations, preventing the capacity to think creatively and expansively.

Neither Can Get Ahead

Imagine starting with a zero line, the position of no net worth.

When the Spender finances, they immediately go into a debt position, with more liabilities than assets, causing their net worth to dip below zero.  Every payment ratchets them up a step out of this debt pit until the final payment brings them back to ground level at the zero line.  The next time they have a major purchase, they spend money the same way, going into debt again because there’s no cash, and repeat the DOWN-UP cycle over and over.

Spender

The Saver also starts at the zero line, with no net worth.  Because their savings account is an asset, with each payment they make into savings, they stair step up their net worth into the positive.  They wait to make the purchase until they have enough cash.  To make the purchase, they use up their savings, plummeting their asset base back down to the zero line.  Then they start to bank up the savings again and repeat the UP-DOWN cycle over and over.

Saver

Neither the Spender or the Saver create growing wealth.  They might run on opposite sides of the zero net worth line, but they both always wind up back at zero.  It’s as if the zero line has a gravitational pull that prevents them both from advancing.

The Two Problems with Paying Cash

The Saver starts with the right idea and then veers off course.

They’ve implemented the habit of systematic saving, which is a foundational cornerstone of building wealth.  Likewise, they are in a position of control with safe, liquid cash for emergencies and opportunities.

However, the Saver’s propensity to pay cash for everything is their demise.  Once they make the purchase, they no longer have the cash.  They lose the security and control they once had and reset the compound growth of their money.

You Give Up the Ability to Earn Interest

Every time you reach into your pot of cash and use it, you deplete it, taking away your ability to earn interest. Using your cash causes you to lose out on the interest your money could have earned.The Right Way to Spend Money

For example, imagine you had $100,000, earning 5% annually (compounded monthly).  If you let it sit for 30 years and didn’t add to it or take anything away, do you know how much would be in your account at the end of those 30 years?  Your account would have grown to $446,774.  That means the 30-year potential of that $100K is the $346,774 it could earn.

If instead, you use up your $100K by paying cash, you give up the ability to earn the $347K. The $347K that will not be created is the lost opportunity cost of using up your $100K.

You Reset the Compounding

Even if you restock your savings by building it back up, you’ve still forgone tremendous wealth potential.  Here’s why:

When you use up your savings and drop back down to zero, you set back the starting point of your growth all over again.

Because the magic of compound interest happens the longer you allow it to work for you, every time you move your start point back to a later date, you delay your wealth creation and shrink the wealth you can create.

Imagine the same example above, except that you used all your cash in year 10 and then replenished your savings.  At the same 30-year mark, your money would now have only had the opportunity to compound for 20 years.  $100,000, earning the same 5% annually (compounded monthly), for 20 years, would grow to only $271,264.  By using your cash and restarting the growth curve ten years later, you’ve given up $175,510 that you no longer have the ability to create with that cash, had you let it continue to compound uninterrupted.

Using your cash interrupts the compounding, erasing years of growth and robbing you of tremendous wealth potential.

The Steward

Recognizing the limitations of both the Spender and the Saver, the Steward strategically uses elements of both types, while bypassing all the problems of both.

They habitually pay themselves first and save, so they have money in savings.

Because they have cash, they earn interest.

When they face a major purchase, instead of paying cash and draining their savings, they finance their purchase.

How the Steward Gains the Advantage

The Steward’s spending strategy is the best financing option.  They save, build up cash, continue compounding, and use their cash as collateral for financing, allowing them to maximize their wealth potential.

Access to the Best Financing

Instead of paying the highest rates of interest like the Spender, the Steward uses their own money as collateral and borrows against it to finance the purchase.  Because they have cash, they are a low risk to the lender.  Consequently, they get financing at the best rates and terms, costing them less in interest than the Spender.

Your Money Continues Growing and Earning Compound Interest

The reason the Steward finances instead of paying cash is that they want to have the “miracle” of compound interest working in their favor.  Their cash continues growing and earning, while they use other people’s money (OPM) to finance the purchase.

As a Steward, you never interrupt your earnings.  Your money continues growing and earning compound interest, sending you up the sweeping compound interest curve.  Instead of being subjected to the gravitational pull of the zero net worth line, you rise above and continue to grow wealth exponentially over time.

While you still pay interest every time you finance, you also continue to earn interest, allowing you to be the bank.

Steward

You Retain Your Cash for When You Need It

Additionally, because you maintain your capital, you always have cash to fall back on for emergencies or opportunities.  You’re not left in the cash-strapped position of having just paid cash and then needing money for something and having no way to get to it.

You Can Pay Off Your Loan If You Want To

The Steward recognizes the difference between loans and debt.  They aren’t afraid to use loans productively.  They know that if they have the cash to pay off their loans, they are not in debt.  They have positive net worth and could pay off the loan at any time if they wanted to.

Improving How You Spend Money

Given the benefits of being a Steward, how do you move forward from where you are now, so you can keep and control more money?

Steps for Spenders

If you’re a Spender, find ways to save money by setting a spending ceiling.

You can also consider restructuring loans or using long-term tax reduction strategies to free up cash.

When you free up cash, commit to saving it, not spending it.  Develop the discipline of monthly savings.

You’ll not only get better rates on financing; you’ll have more options for purchasing, and more cash in your control along the way.

Steps for Savers

If you’re a Saver, you have solid savings habits and cash at your disposal.

You value having a strong cash position, but you’re frustrated that every time you use it, it disappears from your personal economy, taking with it what it could have earned.

Or perhaps you’re frustrated with the low rates of return you’re earning in bank savings accounts and want something more robust that will increase your rate of return, without restricting your access to capital.

If you recognize the problems with spending cash, giving up control of your capital and resetting your compounding, make the leap to become a Steward by prioritizing earning interest over not paying interest.

To make a major capital purchase, you can finance with loans secured against your capital.  This allows you to keep your cash and use OPM (other people’s money) for the purchase.  Even if you pay a higher interest rate on a loan than you earn on your savings, having access to cash is often more valuable, because it puts you in control.  Remember, there’s always a cost of capital, so it’s best to weigh these decisions in light of your financial picture and what maximizes your wealth creation.

Start Creating Wealth Today

Given the pros and cons of each way to spend money, you now have a choice to make.

If you stay stuck with the Spender/Saver polarity, you’ll find yourself either paying interest or giving up the ability to earn it.

Or, you can step into a new paradigm of abundance as a Steward and wealth creator who maintains control and earns interest.  Keeping your capital and financing increases your control, safety, and growth.

Build Your Time and Money Freedom

If you’re a Spender who’s struggling to pay down debt, hoping to save money someday, but looking back at your historical decisions, haven’t found a way to do so yet, we invite you to subscribe to the podcast and join the Money Advantage Community to get ideas on how to increase your cash flow today.

If you are a Saver who would like to learn more about how to increase your rate of return on liquid cash, maintain control of your capital, earn uninterrupted compounding, use your cash as collateral, and have a guaranteed loan option to access your cash, consider using Privatized Banking to elevate your stewardship.

Reach out to schedule a Financial Picture Conversation to consider your personal situation and determine the best stewardship strategy for you.

This FREE conversation will help you:

  • Discover dollars flowing into and out of your control
  • Strategize ways to get more dollars flowing into your control
  • So that the End Result is that you have more money to retain and utilize during your lifetime and more to pass on to future generations

Contact us to request your Financial Picture Conversation or email hello@themoneyadvantage.com to share your comments, questions, and feedback with us.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

]]>
Alexander Pope said, “To err is human, to forgive divine.” Financially speaking, it would be more accurate to say, “to spend money is human, to create wealth divine.”  No one ever needed a lesson in how to buy things. In fact, with no restraint,
To help you spend money the right way, we’ll answer:

* What are my options for how I spend money?
* Am I a spender, a saver, or a steward?
* What are the impacts of each?
* What action steps can I take from where I am to spend money better and increase my future cash flow?

Understanding your purchase personality will move you from impulse buying and scarcity-based decision-making to abundance-based wealth creation.  Instead of never getting ahead, you’ll spend money knowing that you’re increasing your wealth potential.  Rather than being out of control, you’ll gain control, options, and increased confidence in your financial future.

 


It's Not So Much What You Spend, It’s How You Spend It
When you review your monthly cash flow, you’ll notice circumstances that call for you to go above and beyond your normal monthly spending.  These major purchases may be to maintain your lifestyle or improve it.  They may be emergencies, or opportunities, or just for fun. Whether it’s buying your next rental property, a business acquisition or expansion, buying a new car, putting tires on the old one, remodeling your kitchen, paying for your daughter’s wedding, your son’s college education, major purchases are outside your monthly spending plan and require additional thought and planning.

The way you pay for these expenses has more significant impacts on your current and future cash flow than you realize.

How you purchase makes a world of difference in your control or loss of control.

So how will you pay for these future major purchases?

You can know the best way, speculate, guess, dream, and even commit, but the best way to predict your future decision-making is to look honestly at your past decisions to figure out what mindset you used to arrive at where you are today.
Where Spending Money Fits into Your Cash Flow System
Spending money is just one part of the Survival to Significance Cash Flow System.

How you spend money is a result of your mindset.  When you spend money the right way, you keep and control more money today, giving you more to save and invest in cash flowing assets.
What’s Your Purchase Personality?
Use this simple quiz to help you discover your purchase personality.

* Do you put money into savings each month?
If no, you are a Spender.
If yes, continue.
* Think back to your last large purchase, maybe it was an investment property, car, boat, remodel, wedding, vacation.  Did you have enough in savings to have the option to pay cash?
If no, you may be a Spender.
If yes, continue.
* Did you choose to pay cash?
If yes, you might be a Saver.
If no, continue.
* Did you keep your cash and finance the purchase?
If yes, you may be a Steward.

The Three Ways to Spend Money
Two of the most common perspectives, which the majority of people ascribe to, are rooted in scarcity.  The third, rare perspective is from a place of abundance.
Scarcity: a mindset and position rooted in the fear of lack, limits, and “not enough”
The Spender
The Spender's desire to enjoy money and life is right a...]]>
Bruce Wehner & Rachel Marshall clean 36:10
Speaking Without Fear, with Joe Yazbeck – TMA 039 https://themoneyadvantage.com/speaking-without-fear-joe-yazbeck/ Mon, 06 Aug 2018 09:00:11 +0000 https://themoneyadvantage.com/?p=2759 If you’re in business, you should be speaking.  Don’t let fear of using your own voice and not knowing what to say cripple your impact and prevent you from building a life and business you love.  Instead, recognize the power of this essential skill and say yes to mastering speaking, so you can expand your relationships and grow your business. Here to encourage, enlighten, and empower you to improve your communication to create positive change is Joe Yazbeck, master speaker and coach.  In this rich interview, we’ll discuss: How do I get past the fear of speaking? I know I have the potential to be a much greater speaker than I am, but where do I start? How do I improve my speaking to grow my business? What do I need to include in a successful presentation? What are the most important things I can do right away to improve my impact as a speaker?   Where Speaking Fits into the Cash Flow System Developing your speaking and communications skills is part of your Mindset in Stage 1, as well as your Unique Ability Investing and Legacy Creation in Stage 3 of the Survival to Significance Cash Flow System. It’s one of the most powerful ways to invest in yourself and your personal and professional development. The things you want are not really what you want.  What you want is to be the person who creates, expresses, or experiences those things. – Steve D’Annunzio, Mission-Driven Advisor In growing your business, speaking is a fundamental skill you can’t ignore or outsource. As you develop your skills, you become a more successful, effective, and impactful person that is capable of building a self-sustaining business through relationships and teams. Who Is Joe Yazbeck? Joe is a public speaking and leadership trainer, best-selling author, president of Prestige Leadership Advisors, and Master Speaker and coach. As the Founder and President of Prestige Leadership Advisors, his mission is to facilitate leaders in becoming dynamic, powerful communicators, so they can significantly influence the world around them. Joe has worked with heads of state and leaders of major corporations, as well as high-ranking military officers, political candidates, and best-selling authors. Joe is a highly-sought-after leadership and communications coach. Government and business leaders around the globe seek his counsel and company’s services at critical times such as PR, launching a brand, strategic direction, media training, speaking to government committees, winning a political campaign, creating a successful exit strategy, leadership development, etc. To complement the services of Prestige Leadership Advisors, Joe created the No Fear Speaking System which offers communications services which include executive-level speaker training, negotiation skills, media presentations for radio and TV, sales presentations, courtroom/trial presentations, etc. Joe has also authored a companion book by the same title, No Fear Speaking: High Impact Presentation Skills and Public Speaking Secrets to Inspire and Influence Any Audience, an Amazon bestseller. Joe is passionate about helping you become a highly respected and widely recognized leader in your industry.  He has developed workshops, one-on-one coaching, online training, and customized corporate training programs to help leaders do just that. Conversation Highlights (Partial Transcript) Speaking Is Showing up as You Are [9:45] The messaging has to come from the person himself or herself and be embedded in who they are. It can't be something synthetic. In my book No Fear Speaking, the chapter on authentic versus synthetic speaking will tell you that great speaking isn't adding anything. It's who you are that needs to show up. People will respect you and be attracted to your message because you are showing up delivering it, along with all the qualities that make up who you are. I've seen too many false approaches to training speakers where they're involv... If you’re in business, you should be speaking.  Don’t let fear of using your own voice and not knowing what to say cripple your impact and prevent you from building a life and business you love.  Instead, recognize the power of this essential skill and say yes to mastering speaking, so you can expand your relationships and grow your business.

Here to encourage, enlighten, and empower you to improve your communication to create positive change is Joe Yazbeck, master speaker and coach.  In this rich interview, we’ll discuss:

  • How do I get past the fear of speaking?
  • I know I have the potential to be a much greater speaker than I am, but where do I start?
  • How do I improve my speaking to grow my business?
  • What do I need to include in a successful presentation?
  • What are the most important things I can do right away to improve my impact as a speaker?

 

Where Speaking Fits into the Cash Flow System

Developing your speaking and communications skills is part of your Mindset in Stage 1, as well as your Unique Ability Investing and Legacy Creation in Stage 3 of the Survival to Significance Cash Flow System.

It’s one of the most powerful ways to invest in yourself and your personal and professional development.

The things you want are not really what you want.  What you want is to be the person who creates, expresses, or experiences those things. – Steve D’Annunzio, Mission-Driven Advisor

In growing your business, speaking is a fundamental skill you can’t ignore or outsource.

As you develop your skills, you become a more successful, effective, and impactful person that is capable of building a self-sustaining business through relationships and teams.

Who Is Joe Yazbeck?

Joe is a public speaking and leadership trainer, best-selling author, president of Prestige Leadership Advisors, and Master Speaker and coach.

As the Founder and President of Prestige Leadership Advisors, his mission is to facilitate leaders in becoming dynamic, powerful communicators, so they can significantly influence the world around them. Joe has worked with heads of state and leaders of major corporations, as well as high-ranking military officers, political candidates, and best-selling authors.

Joe is a highly-sought-after leadership and communications coach. Government and business leaders around the globe seek his counsel and company’s services at critical times such as PR, launching a brand, strategic direction, media training, speaking to government committees, winning a political campaign, creating a successful exit strategy, leadership development, etc.

To complement the services of Prestige Leadership Advisors, Joe created the No Fear Speaking System which offers communications services which include executive-level speaker training, negotiation skills, media presentations for radio and TV, sales presentations, courtroom/trial presentations, etc.

Joe has also authored a companion book by the same title, No Fear Speaking: High Impact Presentation Skills and Public Speaking Secrets to Inspire and Influence Any Audience, an Amazon bestseller.

Joe is passionate about helping you become a highly respected and widely recognized leader in your industry.  He has developed workshops, one-on-one coaching, online training, and customized corporate training programs to help leaders do just that.

Conversation Highlights (Partial Transcript)

Speaking Is Showing up as You Are

[9:45] The messaging has to come from the person himself or herself and be embedded in who they are. It can’t be something synthetic.

In my book No Fear Speaking, the chapter on authentic versus synthetic speaking will tell you that great speaking isn’t adding anything. It’s who you are that needs to show up.

People will respect you and be attracted to your message because you are showing up delivering it, along with all the qualities that make up who you are.

I’ve seen too many false approaches to training speakers where they’re involved in doing something synthetic, made up, or stereotypical.

When I coach a leader, I coach them with the idea of not changing them. I coach them with the purpose of removing what doesn’t belong there.  Then, they show up like diamonds shining.

[11:00] They’re happy because they don’t have to be anything but themselves.

Leadership Is Inspiring People to Action

[11:45] Leadership is the outcome of what you’re doing. If you’ve created an outcome, or you’ve got people rallying to some purposeful objective, and they’re getting it done. That’s it. Leadership.

I don’t care if you’re a nerd, like Coke-bottle glasses, and you’re speaking. If you’re moving and inspiring people to do things in a positive, active way, that’s leadership. And they’re becoming better people. And they’re becoming leaders there with you.

Leadership has some strange connotations because of what we’ve seen, whether through movies or television. Leadership is a communication ability and skill, particularly in front of an audience.  It’s not saying, “rah rah!”

I’m not really in favor of supporting cheerleader-type speakers, as people walk out of that audience and they don’t have tools they can work with.

Afterward, they feel better. It’s instant gratification. They say, “Wow!  Wasn’t that awesome? But did I learn anything? Can I apply anything? And will I get results right now?”

Lack of Knowledge and Preparation Causes the Fear of Speaking

[16:50] If I were given a choice to lose something important or change the engine of my car, I’d be afraid to replace the engine in my car because I don’t know how.  I’m not prepared. I don’t have the experience of changing the engine in my car. I could probably change the oil in my car, but I probably have some trepidation about it whether I’m doing it right in the right sequence. It’s about know-how.

Just because you’re standing up in front of an audience doesn’t mean that you’re going to do it with confidence and bravura, unless you have the know-how. Unless you’re trained, prepared, and organized. That’s a good chunk of the battle right there.

Are you prepared to create and structure a presentation? Do you know what the ingredients are?

You Must First Be Willing to Improve

[19:05] Three things are needed to really embrace education of any nature: (1) the willingness to learn, (2) knowing you have the ability and most people have the ability and the talent.

If you don’t have the willingness, you’re not going to gain the third, which is (3) know-how. People can bring me their willingness and their ability, and I work with the know-how….

How many bodies could you have sitting in chairs in front of you without getting disturbed?

Now, what is public speaking? It’s me looking at you, looking at me. It’s as simple as that. I’m looking at you looking back at me.

I don’t even have to say a word yet. Am I willing to experience that?

That’s a drill in itself just to look at people. I tell my clients to go where there’s a group where there’s a lot of people.  It could be a mall during the holidays. It could be in a theater when the movie has not yet started.

Talk to a Person, Not to a Group

[24:00] Get yourself in front of them so that you’re having a conversation with your audience like it’s one-on-one. That’s another major principle.The audience is number one

You can’t really talk to a group. Have you ever heard people talking to groups?  They talk like this: “LAAA-DIES and GEN-TLE-MENNNN!!” It’s like you’re being talked at. Nobody’s going to listen.

For example, Franklin Delano Roosevelt did not do that. He talked to you like you were a person. He had his famous fireside chats during World War II when all you had was radio.  People peeled their ears to that radio, and everybody in the family surrounded just get the news of the war and how things were going.  He talked to them like he was grandpa and you’re sitting on grandpa’s lap. That’s how intimate and personal he was.

That’s what I tell speakers to do. If you’ve got 5000 people in an audience, talk to one person, and every single one of them will get the feeling that you’re talking to them individually.

Involved Audience, Not Spectators

[25:47] You can even go further by making that audience feel like they are a part.  They’re being participants, not spectators. The worst thing in the world is spectatorism in an audience.

Get the audience involved.

How to Move Listeners to Action

[30:30] What we are trying to do with an audience as a leader, is not only impinge on them so they’re looking at the present problem, but you’re also giving them a sense of hope and help at the call to action.

They realize you’re offering a solution to a problem here. This is why it’s so necessary … to convert those attendees into clients. You’re moving them to a call to action, to take the next step, and then offering them your solution.  That’s leadership right there. You’re speaking to get more business, increase revenue, and expand your business with more clientele.

[32:12] Before you get anyone to reach for help, they have to be aware of what the problem is. As a speaker, you’re making them aware of what the problem is.

[32:40] The next step is the pain of the problem.  How does this affect you?

[32:55] The next step is the consequences of doing nothing.  What’s going to happen if you do nothing?

[33:24] You need to get people to be aware of the consequence or the ripple effect if they should do nothing or take no action.

The next step is the benefit of taking action. Enlighten the audience on your solution. Give them the reasons why they should make an improvement or a change. Then the light bulb goes off.

Then give them examples of why and what you do.  Don’t get in too much of the how, because that’s what you want them to come to see you for. Then you tell them here’s my call to action.

[34:54] That call to action is always an instruction to tell them what to do next.

Audience-Centric

[36:09] You have to be very audience-focused. And I referred to this as part of the very first chapter of my book: it’s the APP.

Know your audience. That’s A.

Know the purpose of why you’re there. What are you doing? How are you helping them when you’re there? That’s the purpose.

Then, what’s the product of your presentation? What is what is the outcome? What is that presentation resulting in?

But the audience is number one. It’s not about you. You have to be so prepared to deliver what that audience needs and wants. You have to know the problems they’re facing.

The Three Connections Every Speaker Needs

[37:37] Number one, you must be connected to your own message, much like a singer is connected to the lyrics of a song. The audience will never be moved by the singer’s performance unless that singer is connected to the emotion of the lyrics of that song and sending it outward.  That’s the connection of speaker to message.

[38:00] The next connection is speaker to audience. You have to like your audience, you have to admire them. Find something about your audience that you have an affinity for, that you’re really interested in. You genuinely want to feel that you want to help them. That’s the connection there. They pick that up.

Number three is the connection of the message to your audience.

You cannot connect the message to your audience unless you’re connected to the message, and unless you are connected to the audience.

Why Memorization Is a Destroyer

[43:02] Do not memorize a presentation. It’s going to kill you. I do not train via script. I am completely unscripted with my speakers. Instead, I want them unscripted, which means you must know what you’re going to say next. Having a command card is okay … Then talk about what you know.no fear speaking book cover

Otherwise, you’re having to think.  Thinking is a destroyer in public speaking because when you’re thinking, you’re looking inwards.

Thinking is introverted. When you’re introverted, you’re not creating space.

You want to extend your space way out, and you want your audience included in that space.

An extroverted personality is natural, expressive, effortless, and looking.

Connect with Joe Yazbeck

You can find and follow Joe’s work at https://www.nofearspeaking.com or http://prestigeleader.com.

Get a copy of his book, No Fear Speaking.

If you would like to take the step to become a better leader and influencer, to increase your impact and make a greater difference in the world, get the 30 No Fear Speaking Tips and request a complimentary consultation.

Embrace Your Time and Money Freedom

If you would like to create a comprehensive strategy to keep and control more of the money you already make and turn it into cash flow, so you can build time and money freedom, contact us to request your Financial Picture Conversation.

This FREE conversation will help you maximize your wealth today and, in the future, by:

  • Discovering money flowing out of your control
  • Strategizing ways to have more money flowing into your control
  • With the End Result being more money to utilize during your lifetime, and more to give to future generations.

Email us at hello@themoneyadvantage.com to share your comments, questions, and feedback with us.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

]]>
If you’re in business, you should be speaking.  Don’t let fear of using your own voice and not knowing what to say cripple your impact and prevent you from building a life and business you love.  Instead, recognize the power of this essential skill and...
Here to encourage, enlighten, and empower you to improve your communication to create positive change is Joe Yazbeck, master speaker and coach.  In this rich interview, we’ll discuss:

* How do I get past the fear of speaking?
* I know I have the potential to be a much greater speaker than I am, but where do I start?
* How do I improve my speaking to grow my business?
* What do I need to include in a successful presentation?
* What are the most important things I can do right away to improve my impact as a speaker?

 


Where Speaking Fits into the Cash Flow System
Developing your speaking and communications skills is part of your Mindset in Stage 1, as well as your Unique Ability Investing and Legacy Creation in Stage 3 of the Survival to Significance Cash Flow System.

It’s one of the most powerful ways to invest in yourself and your personal and professional development.
The things you want are not really what you want.  What you want is to be the person who creates, expresses, or experiences those things. – Steve D’Annunzio, Mission-Driven Advisor
In growing your business, speaking is a fundamental skill you can’t ignore or outsource.

As you develop your skills, you become a more successful, effective, and impactful person that is capable of building a self-sustaining business through relationships and teams.
Who Is Joe Yazbeck?
Joe is a public speaking and leadership trainer, best-selling author, president of Prestige Leadership Advisors, and Master Speaker and coach.

As the Founder and President of Prestige Leadership Advisors, his mission is to facilitate leaders in becoming dynamic, powerful communicators, so they can significantly influence the world around them. Joe has worked with heads of state and leaders of major corporations, as well as high-ranking military officers, political candidates, and best-selling authors.

Joe is a highly-sought-after leadership and communications coach. Government and business leaders around the globe seek his counsel and company’s services at critical times such as PR, launching a brand, strategic direction, media training, speaking to government committees, winning a political campaign, creating a successful exit strategy, leadership development, etc.

To complement the services of Prestige Leadership Advisors, Joe created the No Fear Speaking System which offers communications services which include executive-level speaker training, negotiation skills, media presentations for radio and TV, sales presentations, courtroom/trial presentations, etc.

Joe has also authored a companion book by the same title, No Fear Speaking: High Impact Presentation Skills and Public Speaking Secrets to Inspire and Influence Any Audience, an Amazon bestseller.

Joe is passionate about helping you become a highly respected and widely recognized leader in your industry.  He has developed workshops, one-on-one coaching, online training, and customized corporate training programs to help leaders do just that.
Conversation Highlights (Partial Transcript)
Speaking Is Showing up as You Are
[9:45] The messaging has to come from the person himself or herself and be embedded in who they are.]]>
Bruce Wehner & Rachel Marshall clean 59:52
Business Is Simple: You Only Need One Thing Before You Launch, with Josh Thomas – TMA 038 https://themoneyadvantage.com/business-is-simple-you-only-need-one-thing-before-you-launch-boat-josh-thomas/ Mon, 30 Jul 2018 09:00:04 +0000 https://themoneyadvantage.com/?p=2619 We brought Josh Thomas, of Profit Arc, onto the show to talk about sales, marketing, and growth.  This dynamic, authentic conversation covered that ground, and so much more.  In his down-to-earth message of simplicity and focus, Josh shares the power of one person to make a difference, how to adapt to change, and the #1 thing that your business needs to get results. Josh tells his fascinating story that winds from burnout and mediocre failure to learning how to run a successful business and helping others to do the same.   Who Is Josh Thomas? Josh Thomas is a problem solver. He has assisted businesses in dozens of industries to identify problems and fix them. Be it a sales, marketing or systems issue, Josh’s focus is on results and revenue. He has personally consulted with over 1,000 businesses in 30 different industries across all 6 continents. He has directly produced millions of dollars in sales and profit growth through his unique “results first” approach. Josh delivers tangible results-oriented solutions in sales, marketing, and systems components using sales fundamentals, direct-response marketing, and proven best practices for laser-targeted, rapid business growth. He lives in Austin, Texas and is an avid stand-up paddle-boarder. Conversation Highlights (Partial Transcript) The Power of a Handshake [18:27] It just takes one person, one thing, to change everything for you. Perseverance and Adaptation [20:00] Evolution is not about survival of the fittest, or the most intelligent, but it's about the animals that can most readily adapt to change. The Simple Thing to Focus on to Get Results [21:09] There's a lot of noise and shiny objects out there.  We want to make sure that we're focusing on the thing that's going to get us a result. Not on the thing that's going to make us look good, or that's going to stroke your ego, but the thing that is going to get a result. To have a successful business, you need a valuable product, a hungry crowd, and to be in a great position where the hungry crowd can see your valuable product. And that's it. If you're on Instagram, Facebook, YouTube, LinkedIn, and Google Plus, that's fine. But why are you there? Are you there because your customers are there? Are you there because you have a plan on how to generate business from there? Or are you there because somebody said you have to be there? Let's go back to your website. Do you have a website because you need one, or because you think you should have one? Launch with an Offer, Then Build the Rest on the Way [22:28] The concept of agile development is like building a ship. Most of the time you're going to build the entire thing in the shipyard, and then you're going to shove it off into the sea. Instead, agile development says you build the hull, stick all the other stuff you might need in there, and you shove off to sea.  You build the rest of the ship while you're sailing. Why?  Because once you get out to sea, you're going to find out that you might not have the best sail, or mast, or maybe you want to design this a little differently.  When I'm out here living it, I'm getting immediate feedback. I would recommend that you build a business the same way, don't worry about your website, your USP, finding your why, and all that stuff.  Instead, figure out if you can take an offer and go and get somebody to give you money for it. Agile Development in Action [26:48] I was introduced to the idea of generating leads on LinkedIn via a Facebook ad. The guy had a great pitch. Basically, it was a manual approach, where you’re reaching out to connections and writing a good message to pitch them for some service. I realized I could do this. I’ll offer that to other business owners. I've got some I've got some spare time, an assistant, and I can probably outsource the majority of this work. I first put together my offer, and then called five people that I really like and trus... We brought Josh Thomas, of Profit Arc, onto the show to talk about sales, marketing, and growth.  This dynamic, authentic conversation covered that ground, and so much more.

In his down-to-earth message of simplicity and focus, Josh shares the power of one person to make a difference, how to adapt to change, and the #1 thing that your business needs to get results.

Josh tells his fascinating story that winds from burnout and mediocre failure to learning how to run a successful business and helping others to do the same.

 

Who Is Josh Thomas?

Josh Thomas is a problem solver. He has assisted businesses in dozens of industries to identify problems and fix them.

Be it a sales, marketing or systems issue, Josh’s focus is on results and revenue.

He has personally consulted with over 1,000 businesses in 30 different industries across all 6 continents. He has directly produced millions of dollars in sales and profit growth through his unique “results first” approach.

Josh delivers tangible results-oriented solutions in sales, marketing, and systems components using sales fundamentals, direct-response marketing, and proven best practices for laser-targeted, rapid business growth.

He lives in Austin, Texas and is an avid stand-up paddle-boarder.

Conversation Highlights (Partial Transcript)

The Power of a Handshake

[18:27] It just takes one person, one thing, to change everything for you.

Perseverance and Adaptation

[20:00] Evolution is not about survival of the fittest, or the most intelligent, but it’s about the animals that can most readily adapt to change.

The Simple Thing to Focus on to Get Results

[21:09] There’s a lot of noise and shiny objects out there.  We want to make sure that we’re focusing on the thing that’s going to get us a result.

Not on the thing that’s going to make us look good, or that’s going to stroke your ego, but the thing that is going to get a result.

To have a successful business, you need a valuable product, a hungry crowd, and to be in a great position where the hungry crowd can see your valuable product.

And that’s it.

If you’re on Instagram, Facebook, YouTube, LinkedIn, and Google Plus, that’s fine. But why are you there?

Are you there because your customers are there? Are you there because you have a plan on how to generate business from there? Or are you there because somebody said you have to be there?

Let’s go back to your website. Do you have a website because you need one, or because you think you should have one?

Launch with an Offer, Then Build the Rest on the Way

[22:28] The concept of agile development is like building a ship.Business Is Simple - You Only Need 1 Thing Before You Launch the Boat, with Josh Thomas

Most of the time you’re going to build the entire thing in the shipyard, and then you’re going to shove it off into the sea.

Instead, agile development says you build the hull, stick all the other stuff you might need in there, and you shove off to sea.  You build the rest of the ship while you’re sailing.

Why?  Because once you get out to sea, you’re going to find out that you might not have the best sail, or mast, or maybe you want to design this a little differently.  When I’m out here living it, I’m getting immediate feedback.

I would recommend that you build a business the same way, don’t worry about your website, your USP, finding your why, and all that stuff.  Instead, figure out if you can take an offer and go and get somebody to give you money for it.

Agile Development in Action

[26:48] I was introduced to the idea of generating leads on LinkedIn via a Facebook ad. The guy had a great pitch. Basically, it was a manual approach, where you’re reaching out to connections and writing a good message to pitch them for some service.

I realized I could do this. I’ll offer that to other business owners. I’ve got some I’ve got some spare time, an assistant, and I can probably outsource the majority of this work.

I first put together my offer, and then called five people that I really like and trust. I said, Okay, I’m going to give you my pitch, poke some holes in it. They gave me feedback, and I refined it.

And then I started reaching out to people I didn’t necessarily know and began offering it to them.  Eventually, some of them bit, and I got a couple of clients out of it. I think we’re 30 days into this right now. I have a couple of clients.  The very first client just renewed and paid me for the second month. It’s going somewhere.

Why Everything Else Doesn’t Matter

[28:10] Now if you ask me, what is the name of this service? I don’t have one. If you ask me, where can I go and get more information and learn more about this? You can’t. It’s me. It’s a dude on the phone.

We don’t have a social media presence. There’s literally not even any name for the service. It’s just called LinkedIn lead generation service. You won’t find it anywhere because I’m going out and trying to prove the concept.

I get on the phone, talk to somebody, and say, you run a b2b type business.  You’re looking for leads that are accountants in the Northwest. I can help you find accountants in the northwest on LinkedIn. I’m going to write a message that will compel them to respond, and then follow up with them. I’ll charge you X number of dollars. Do you want to do it? In fact, I’m going to guarantee results.  If it doesn’t work, I’ll eat all the hard costs and give you your money back. I get results or no charge.

And they say yes.

Ditch What Doesn’t Work and Get Stuff Done

[31:23] I’m not a guy that’s sitting on a yacht, drinking my fruity drinks with the umbrella surrounded by beautiful ladies.  I’m just a guy, and I know how to survive, and I know how to make money. But this isn’t wisdom from the top of the mountain. I’m a guy that gets in the trenches and get stuff done.

I was a guy who sat there, talked about ideas, built my website, and made sure that my autoresponder was put together properly and blah, blah, blah, and all that stuff. That made me zero dollars.

What made me money was going out having a valuable service, finding a place where the hungry crowd is and asking them to buy my stuff.

And I’ll figure the rest of it out as I go. If I pick up three or four more clients, maybe I’ll come up with a name for it. Perhaps I’ll build a website, but it’s not important.

How to Get Results

[34:00]

What’s the one thing I can do such that by doing it, everything else will be easier or unnecessary?– Gary Keller

Think about what you are doing with your day. If you’re starting a business, struggling, or not making enough money, flip your productive time towards the thing that is going to produce the most results and forget everything else. I like to use the 80/20 rule.

The 80/20 rule is 20% of your effort produces 80% of your results and vice versa. And it’s a law of nature.

For example, 80% of the entire market cap of the stock market is owned by 20% of the companies and vice versa.

Focus on Your One Thing

[35:00] Here’s how to apply it. Let’s just assume everybody works a 40-hour week. What are you doing with that 40-hour week to produce revenue, increase profit, or whatever the goal is?

My suggestion is prospecting.

If you’re a struggling business owner and don’t have enough sales or people to talk to, you need to spend 80% of your time prospecting or in active sales conversations. If you’re not doing that, change your systems so that that’s what you can do. That’s about six hours a day, by the way.

If you’re spending six hours a day prospecting for new business or in sales conversations, and you do that for a month, you will be in a different position, guaranteed.

Take stock of what are you doing with your productive time. If you’re allotting yourself 40 hours a week for your business, and you don’t have enough customers or sales, then you need to be spending at least 80% of your time prospecting for new business, in whatever capacity that is.  Going to a meetup counts. If it’s cold calling, that counts. If it’s sending out emails, that counts.  Maybe it’s getting people on the phone and just talking about your business to see if they’re qualified as a potential prospect for you. That counts.

That’s simplicity.

Stop Doing Everything Else

[36:50] Stop working on your website and your email campaign and go out there and prospect for new business until it doesn’t make sense for you to do that anymore.  There will come this time when you’re spending six hours a day on prospecting, and you’re overwhelmed with people. That’s when you can outsource and start changing your focus.

Then, you can spend 80% of your time building your business instead of selling your business. When you have created your own demand and have more clients wanting your service than you can handle, you’ll need to flip that ratio.  Maybe you’ll do six hours of servicing your clients and only two hours of prospecting because you have all the clients that you can handle at that time.

I’m not a magician or anything. But let’s be practical. If every single person who is listening to this podcast would go out and spend six hours a day trying to find new business, they would probably be successful, right? It’s almost a guarantee.

If you’re not where you want to be, start doing the things that you need to do to get where you want to be.

To build a business, you have to go out and find people who are willing to give you money. That’s what you need to be spending the majority of your time on until it makes sense to get somebody else to do that.

How to Lose Money Podcast

[43:05] … but what I’ve learned from it is this: almost every guest that comes on there, says, “I love the fact that you’re focusing on the failure because I don’t know a single successful person that hasn’t had a major failure.”

[44:29] That to me is what it’s all about. You fail, then you have to go and self-reflect to figure out why you failed and how you can make sure that that specific failure does not happen again. We’ve done that more than 100 times now, and it just it blows me away every time to see how resilient entrepreneurs are as a whole.

Connect with Josh Thomas

If you’re in business and you’re out there trying to make a difference, you’re not alone if you’re struggling.

If you’d like to talk with Josh Thomas to focus on results first, email josh@joshthomas.net with your #1 problem in your business right now.

He’ll help you diagnose if that is the real problem, look for causes, and find solutions.

You can also find him at http://joshthomas.net.

Listen to his podcast, How to Lose Money.

Simple Steps to Your Time and Money Freedom

If you would like to create a comprehensive strategy to keep and control more of the money you make and turn it into cash flow, so you can build time and money freedom, ask us for a Financial Picture Conversation.

This FREE conversation will help you maximize your wealth today and, in the future, by:

  • Discovering money flowing out of your control
  • Strategizing ways to have more money flowing into your control
  • With the End Result being more money to utilize during your lifetime, and more to give to future generations.

Contact us to request your Financial Picture Conversation or to share your comments, questions, and feedback with us.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

]]>
We brought Josh Thomas, of Profit Arc, onto the show to talk about sales, marketing, and growth.  This dynamic, authentic conversation covered that ground, and so much more.  In his down-to-earth message of simplicity and focus, 
In his down-to-earth message of simplicity and focus, Josh shares the power of one person to make a difference, how to adapt to change, and the #1 thing that your business needs to get results.

Josh tells his fascinating story that winds from burnout and mediocre failure to learning how to run a successful business and helping others to do the same.

 


Who Is Josh Thomas?
Josh Thomas is a problem solver. He has assisted businesses in dozens of industries to identify problems and fix them.

Be it a sales, marketing or systems issue, Josh’s focus is on results and revenue.

He has personally consulted with over 1,000 businesses in 30 different industries across all 6 continents. He has directly produced millions of dollars in sales and profit growth through his unique “results first” approach.

Josh delivers tangible results-oriented solutions in sales, marketing, and systems components using sales fundamentals, direct-response marketing, and proven best practices for laser-targeted, rapid business growth.

He lives in Austin, Texas and is an avid stand-up paddle-boarder.
Conversation Highlights (Partial Transcript)
The Power of a Handshake
[18:27] It just takes one person, one thing, to change everything for you.
Perseverance and Adaptation
[20:00] Evolution is not about survival of the fittest, or the most intelligent, but it's about the animals that can most readily adapt to change.
The Simple Thing to Focus on to Get Results
[21:09] There's a lot of noise and shiny objects out there.  We want to make sure that we're focusing on the thing that's going to get us a result.

Not on the thing that's going to make us look good, or that's going to stroke your ego, but the thing that is going to get a result.

To have a successful business, you need a valuable product, a hungry crowd, and to be in a great position where the hungry crowd can see your valuable product.

And that's it.

If you're on Instagram, Facebook, YouTube, LinkedIn, and Google Plus, that's fine. But why are you there?

Are you there because your customers are there? Are you there because you have a plan on how to generate business from there? Or are you there because somebody said you have to be there?

Let's go back to your website. Do you have a website because you need one, or because you think you should have one?
Launch with an Offer, Then Build the Rest on the Way
[22:28] The concept of agile development is like building a ship.

Most of the time you're going to build the entire thing in the shipyard, and then you're going to shove it off into the sea.

Instead, agile development says you build the hull, stick all the other stuff you might need in there, and you shove off to sea.  You build the rest of the ship while you're sailing.

Why?  Because once you get out to sea, you're going to find out that you might not have the best sail, or mast, or maybe you want to design this a little differently.  When I'm out here living it, I'm getting immediate feedback.

I would recommend that you build a business the same way, don't worry about your website, your USP, finding your why, and all that stuff.  Instead, figure out if you can take an offer and go and get somebody to give you money for it.
Agile Development in Action
[26:48] I was introduced to the idea of generat...]]>
Bruce Wehner & Rachel Marshall clean 50:05
Why Debt Free Doesn’t Make You Financially Free – TMA 037 https://themoneyadvantage.com/why-debt-free-doesnt-make-you-financially-free/ Mon, 23 Jul 2018 09:00:00 +0000 https://themoneyadvantage.com/?p=2484 Becoming debt free is often listed as a notch on the belt of financial progress. It’s widely discussed, admired, longed for, celebrated, and even praised by so-called financial experts.  But, paying off debt may be risky or even altogether unnecessary.  In fact, you’re probably not in debt in the first place!  We want you to be debt free, but you first have to know what that means.  Many confuse being debt free with being liability free.  Before you decide whether to add becoming debt free to your checklist, let’s get the skinny on what debt is.  Then, you can take action that gives you the most certainty, control, and peace of mind.  To help you gain clarity on your debt position and know what to do about it, we’ll answer: What is debt? Am I in debt? Will a debt-free goal help or hurt me? More importantly, to reach my goals, gain confidence, peace of mind, time and money freedom, what should I do about debt? This conversation will help you develop a big picture perspective of a balanced personal economy. Rather than spiraling out of control, you’ll gain control, options, and increased financial capabilities.   Why Becoming Debt Free Seems Like Such a Big Deal Let’s face it; most people fear debt. They feel it’s an encumbrance or ensnarement that nullifies their goals.  If it was in a game of Taboo, it’s almost a dirty word that lives with other deplorable financial conditions, like losing money, bad credit, foreclosure, and bankruptcy. Why does debt strike at the chord of our financial aspirations so much so that ringing the debt-free bell seems like such a milestone? Often families start off saddled in student loan debt.  Because there’s not much cash, they add car loans, a mortgage, and credit card debt to achieve their lifestyle.  They work a job to pay it off, while also balancing buying a house and saving for their future.  But the more debt you have, the harder it seems to pay it off because you feel tighter each month.  The debt seems like a slippery slope that can easily have you feeling that forward progress is all but impossible.  To be debt free might seem like the best way to get back on track. Maybe looking at the debt payments each month is an arrow to the heart, reminding you of past mistakes.  To be debt free would mean to be free of the pain of guilt. Because a balanced financial life seems unachievably complex, looking at it one piece at a time might feel more manageable and doable.  Becoming debt free might be that one step you think you can really accomplish. However, putting all your emphasis on paying off debt can be detrimental when it causes you to lose control and delay your journey to financial freedom. Where Debt Fits into Your Cash Flow System Dealing with debt is just one step in the big picture of the Survival to Significance Cash Flow System. Debt is part of your cash flow in the foundational stage.  How you handle debt has the potential to increase or decrease your cash flow and financial control, accelerating or slowing your path to time and money freedom. The more cash flow you have today, the more quickly you can accelerate time and money freedom. How to Determine If You’re in Debt and What to Do About It To start off the conversation on a high note, you probably aren’t in debt in the first place. At the fundamental level, the stress and anxiety about debt are fueled by a simple misunderstanding of the difference between a debt and a liability. Spoiler alert: a liability is not the same thing as debt. For this conversation, we’ll discuss your financial statements so you can find out what it really means to be debt free. It’s much simpler than it sounds, I promise. #1: Understand Your Balance Sheet Take out a blank piece of paper and draw a line down the middle.   On the left side, write assets.  On the right side, write liabilities.  This is your balance sheet. Assets are what you own. Becoming debt free is often listed as a notch on the belt of financial progress. It’s widely discussed, admired, longed for, celebrated, and even praised by so-called financial experts.  But, paying off debt may be risky or even altogether unnecessary.  In fact, you’re probably not in debt in the first place!  We want you to be debt free, but you first have to know what that means.  Many confuse being debt free with being liability free.  Before you decide whether to add becoming debt free to your checklist, let’s get the skinny on what debt is.  Then, you can take action that gives you the most certainty, control, and peace of mind.

To help you gain clarity on your debt position and know what to do about it, we’ll answer:

  • What is debt?
  • Am I in debt?
  • Will a debt-free goal help or hurt me?
  • More importantly, to reach my goals, gain confidence, peace of mind, time and money freedom, what should I do about debt?

This conversation will help you develop a big picture perspective of a balanced personal economy.

Rather than spiraling out of control, you’ll gain control, options, and increased financial capabilities.

 

Why Becoming Debt Free Seems Like Such a Big Deal

Let’s face it; most people fear debt. They feel it’s an encumbrance or ensnarement that nullifies their goals.  If it was in a game of Taboo, it’s almost a dirty word that lives with other deplorable financial conditions, like losing money, bad credit, foreclosure, and bankruptcy.

Why does debt strike at the chord of our financial aspirations so much so that ringing the debt-free bell seems like such a milestone?

Often families start off saddled in student loan debt.  Because there’s not much cash, they add car loans, a mortgage, and credit card debt to achieve their lifestyle.  They work a job to pay it off, while also balancing buying a house and saving for their future.  But the more debt you have, the harder it seems to pay it off because you feel tighter each month.  The debt seems like a slippery slope that can easily have you feeling that forward progress is all but impossible.  To be debt free might seem like the best way to get back on track.

Maybe looking at the debt payments each month is an arrow to the heart, reminding you of past mistakes.  To be debt free would mean to be free of the pain of guilt.

Because a balanced financial life seems unachievably complex, looking at it one piece at a time might feel more manageable and doable.  Becoming debt free might be that one step you think you can really accomplish.

However, putting all your emphasis on paying off debt can be detrimental when it causes you to lose control and delay your journey to financial freedom.

Where Debt Fits into Your Cash Flow System

Dealing with debt is just one step in the big picture of the Survival to Significance Cash Flow System.

Debt is part of your cash flow in the foundational stage.  How you handle debt has the potential to increase or decrease your cash flow and financial control, accelerating or slowing your path to time and money freedom.

The more cash flow you have today, the more quickly you can accelerate time and money freedom.

How to Determine If You’re in Debt and What to Do About It

To start off the conversation on a high note, you probably aren’t in debt in the first place.

At the fundamental level, the stress and anxiety about debt are fueled by a simple misunderstanding of the difference between a debt and a liability.

Spoiler alert: a liability is not the same thing as debt.

For this conversation, we’ll discuss your financial statements so you can find out what it really means to be debt free.

It’s much simpler than it sounds, I promise.

#1: Understand Your Balance Sheet

Take out a blank piece of paper and draw a line down the middle.   On the left side, write assets.  On the right side, write liabilities.  This is your balance sheet.

Assets are what you own.  They are the items of financial value that belong to you at today’s fixed point in time. This includes the balances of cash, savings, checking, CDs, money market accounts, precious metals, brokerage accounts, stocks, mutual funds, 401k’s, IRA’s, Roth’s, life insurance cash value, the value of your house, businesses, investment properties, equipment, vehicles, inventory, accounts receivable, etc.

Liabilities are what you owe.  They are the balances that you must pay to someone else.  Liabilities include the balances of your mortgage, HELOC or home equity loan, student loans, auto loans, credit card balances, accounts receivable, business loans, etc..

(Note: If you have multiple business entities, you’ll have a separate balance sheet for each.)

Your assets and liabilities tell you a story about your net worth.

Determine Your Net Worth

Here’s the simple equation to determine your net worth:

Assets – Liabilities = Net Worth

For example, if you had $200,000 of cash, an $800,000 house, $210,000 in investment accounts, a $50,000 car, and investment properties worth $300,000, your assets total $1,560,000. Correspondingly, if you also had a mortgage on your property worth $600,000, credit card balances worth $30,000, and an auto loan of $40,000, you have $770,000 of liabilities.  Your $1.56 Million of assets minus your $670K of liabilities equals a net worth of $890,000.

Positive and Negative Net Worth

If you imagined your assets in one stack, and your liabilities in a second stack, the taller stack wins.Debt free is not the same thing as liability free

With more assets than liabilities, you have positive net worth.  You could also call this an equity or collateral position.

Conversely, with more liabilities than assets, you have negative net worth.  In a battle between the left and right sides of your balance sheet, your liabilities win because they are heavier and more substantial than your assets.  This negative net worth is also called debt.

Thinking back to simple integer counting from middle school, you could think of assets as positives that increase your net worth.  Liabilities are negatives that decrease your net worth.  A net worth of greater than 0 is positive net worth.  Therefore, if you have a liability, it doesn’t mean you are in debt.  You’re only in debt if you have negative net worth, which means your liabilities outweigh your assets.

To reiterate, a liability is something you owe, while in contrast, debt is the position of owing more than you own.

Where Would the Money Come from to Pay It Off?

To think of it another way, if you sold all of your assets, could you pay off the liabilities?

If the answer is yes, you have more assets than liabilities, and you are not in debt.  You may have loans or liabilities, but you are not in debt.

In the previous example, you have positive net worth of $890,000.  In this case, you are not in debt, because you could quickly pay off all your loans if you sold the assets, you just haven’t chosen to do so.  You become debt free when you reach the tipping point where your assets outweigh your liabilities because you gain the ability to pay off your loans, even if you choose not to do so.

However, if you sold your assets and still didn’t have enough to pay off your liabilities, then you have more liabilities than assets, and you are in debt.  In this case, the only way you can pay it off is by using future income that you haven’t earned yet.  Essentially, you’re borrowing from your future to pay off a past expense, and there’s no guarantee that you’ll be able to do so.

Having a loan doesn’t mean you’re in debt.  Being in debt means you couldn’t pay off your loans.

The Real Reason You Don’t Like Debt

The real reason loans make people feel restricted is the monthly payments.  Let’s turn our attention to your income statement to understand why.

#2: Understand Your Income Statement

Your cash flow resides on another financial statement, called your income statement.

Flip over your balance sheet, so you have a fresh space.  Draw a line horizontally across the middle.  On the top half, write income. On the bottom half, write expenses.  This is your income statement.

Income is the money you have coming in over a period of time.  It’s simplest to think of this in terms of what comes in per month.  You may have income from your job, a spouse’s salary, businesses, rental properties, investments, pensions, social security, etc.

Expenses are the money going out over that same period of time.  This includes everything you spend money on, like the mortgage, insurance, groceries, gas, eating out, Christmas, medical bills, and auto maintenance.

Your income and expenses tell a story about your cash flow.

Determine Your Cash Flow

Here’s the simple equation to determine your cash flow:

Income – Expenses = Cash Flow

For example, if you had $20K coming in each month, and $20K going out in monthly expenses, you would have a monthly cash flow of $0.

Positive and Negative Cash Flow

If you imagined your cash flow like a swimming pool, the hose would be the income, and the expenses are holes in the pool.

With more flowing in than draining out, you have positive monthly cash flow.  You have something left over each month that isn’t spent.

The greater your cash flow, the more freedom you feel each month.  You can breathe easier, have more peace and less stress.  When you have positive cash flow, you can fill up your pool, stacking up savings (assets on your balance sheet) to use for opportunities (assets on your balance sheet that also produce cash flow on your income statement).

But with more draining out than flowing in, you have negative monthly cash flow.  If there are too many holes, most of the water will flow right out onto the ground, and you won’t be able to fill up the pool.  Each month, you’re using up everything and then some, and there’s nothing left in your pool to show for it.  The more payments you have, the more water seeps out, and the less impact the hose has on filling up your pool.

Similarly, with too many expenses causing a drain on your accounts, you feel like you can never get ahead.

The Two Ways to Increase Your Cash Flow

If you want to improve your cash flow, you have two options.  You can either increase your income (i.e., get a bigger hose), or you can decrease your expenses (plug up some of the holes so that less leaks out).

#3) Understand Your Debt-to-Income Ratio

Your debt-to-income ratio serves as a metric to measure the intensity of your financial pain due to loan payments.

This ratio is a measure of your cash flow that’s frequently used by creditors and financial institutions to determine your creditworthiness.  It tells how much of your monthly income is used up by fixed payments on loans and other liabilities.

Measure Your Financial Pain

Here’s the simple calculation to determine your debt-to-income ratio (DTI):

Total Monthly Fixed Loan Payments / Total Monthly Income = Debt-to-Income Ratio

To assess your fixed monthly loan payments, add up any payments you make for all liabilities of any type. These are expenses paid at interest to pay down a balance.  A list would include your mortgage payment, any HELOC payments, student loan payments, auto loan payments, credit card payments, etc.

For instance, a person with a $3,000 mortgage payment, a $500 student loan payment, credit card payments of $2,500, and auto loan payments of $1,000 per month, and a total monthly income of $20,000 would have a DTI of 35%.

Sometimes, figuring out which payments to include here is difficult.  You may have bills set to autopay that you pay monthly, but which are not liability payments.  Bills not included in your loan payments list would be things like your electric bill, cell phone, or tuition payments for your children’s school that do not have a balance and payments at interest.

What Your DTI Means to a Creditor

A higher DTI means you have more monthly payments and are a higher risk to the creditor or banks because you’re more likely to default and be unable to make future payments.  A lower DTI means that less of your income is designated towards fixed monthly payments, and you’re more likely to be able to make future payments.

While there are variations between institutions, the classic, “rule of thumb” ratios are 28% and 36%.  This means your housing costs shouldn’t exceed 28% of your monthly income, and your cumulative loan payments shouldn’t use up more than 36%.

Among creditors, this ratio determines whether they’ll extend a loan, and what interest rate they’ll charge you.

What Your DTI Means to You

While a loan itself is relatively inert and doesn’t really impact you on a daily basis, its associated payment is quite the opposite.  The monthly payment hits your income statement as an expense.  It’s this loan payment, not the loan itself, that’s the real pressure point.

The payment takes up part of your income and crimps the money you have available to spend on everything else.  The bigger the loan payments, the higher the DTI, and the worse the agony.

Lessening this tension is the reason people rush to become debt free.

Having a lower debt-to-income ratio means you’ll breathe easier and be less financially stressed.  More of your monthly income will be available for you to use and control, not earmarked to be paid to a creditor.

But becoming liability free isn’t usually the quickest or safest path to reducing that tension and reaching financial freedom.

Most people who want to become debt free aren’t actually concerned with the loan balances.  What they really want is to be able to ditch their monthly payments so they can be free to use their money the way they want to.

To illustrate this point, imagine if you had a $750,000 mortgage with a monthly payment of $1.  How motivated would you be to pay that off?

So how do you lower your payments, reduce your DTI, and maintain control?

#4) Increase Your Cash Flow

The most important thing you can do is to increase your cash flow, today, not sometime in the future.Debt Free Doesn't Mean You're Financially Free

Why cash flow?  The end goal is time and money freedom, a position where you’ve increased your cash flow, such that your cash flow from assets equals or exceeds your expenses.  With cash flow today, you’ll have more to save each month, and build up capital to invest in cash-flowing assets.

However, a debt-free goal uses up monthly resources, shrinks your cash flow today, limits your reserves, and delays financial freedom.  How?  To get to a more certain future with higher cash flow tomorrow, people often chunk extra change towards their loans today.  They feel that if they use all of today’s extra cash flow to pay off loans, they’ll reach debt freedom and arrive quicker at a future with smaller payments, where life will become easier.

They’re shrinking their current cash flow to hopefully increase their future cash flow.

But here’s the impact of paying extra:

  1. On your balance sheet, your additional payments reduce the liability, which increases your net worth.
  2. However, you also increase your expenses, resulting in less cash flow this month

If you value tomorrow’s cash flow as more important than today’s, you’ll impair both.  You may savor the sweet victory of becoming debt free, only to look up and find that you’re still in financial prison, even further from time and money freedom.

Having cash flow today is vital because it’s what allows you to save and create future cash flow.

Instead, here’s how to get to financial freedom more quickly and safely.

#5) Increase Cash and Assets in Your Control

Instead of feverishly paying off debt, pay yourself extra.  Don’t wait until after your loans are paid off to have the cash flow to build assets.  Start maximizing your cash flow now.

Prioritize Paying Yourself over Paying down Liabilities

Instead of directing all your extra money each month to paying off loans and putting that money into the past, put the excess cash flow into savings, where it’s safe, compounding, and accessible.  In this way, your cash can be used for today and the future.  Your specific situation will require an individualized strategy to balance the timing of building capital and paying off loans.

Paying yourself instead of paying off your loans has these immensely powerful repercussions:

  1. If you lost income or had an unexpected expense, you’ll have cash you can use when you need it, giving you options.
  2. You’ll increase your net worth by adding assets.
  3. You’ll gain the ability to pay off debt, even if you choose not to do so.

Let’s look closer at why building reserves is more important than paying off liabilities.

Having Cash Makes You More Secure Than Having No Loans

Even if you are “debt-free,” you still are not “expense-free,” because you still have monthly payments for gas, groceries, utilities, etc.  In an emergency, you want to make sure you can still cover all your monthly expenses.  The way to do that is to have a store of cash reserves.

If you lost your income or had an emergency expense arise, you have the cash to make payments.  Because of this, you’re far safer and more financially nimble if you have cash on hand than if you were in a position of no loans.

If you’d paid off all your loans instead of building a cash reserve, and experienced the same emergency or loss of income, you’d find yourself in a precarious situation, with limited ability to recover.

Build Assets You Can Use

When you put money into savings, you increase your assets, and consequently, your net worth.

If you choose to build assets with your extra cash each month, it’s important to think through which are the best assets to build and why.  Topping the list of high-quality attributes is access to your money.

For instance, when you pay down your mortgage, you’re putting money into the four walls of your house.  Home equity is not readily accessible, because, in an emergency, the only way you’d be able to use that money would be to qualify for a loan.

Alternatively, assets like savings accounts or cash value life insurance offer accessibility.

Multiply the Uses of Your Money

Instead of using extra cash to pay down a liability, using it to build up safe, liquid, and growing assets expands your options.

With available cash, you could pay off loans if you choose to.  Remember, you become debt free when you gain the ability to pay off your loans, even if you choose not to do so.  You could also cover an emergency, or fund an opportunity.

Structured correctly, it may also provide collateral opportunities, growth, a death benefit, and the opportunity to be the bank.

The Best Loan Pay-Off Strategy

Here’s where paying off loans does help you: If you pay off a liability, you eliminate that payment, freeing up cash flow.

But don’t make the mistake of paying off debt the way most people do.  If you sprinkle around extra money, a little to this payment, a little to that, hoping to reduce them all, you’re wasting your efforts.  Before you pay off loans, secure savings.  Then save up enough to completely pay off the loan that proportionally frees up the most cash flow first, and then eradicate that liability all at once.  We’ll walk you through this exact strategy to pay off loans in the safest and lowest risk method possible in an upcoming episode of this series.

Financially Free Is Better Than Debt Free

When someone says they want to be debt-free, often they really mean that they want to be liability-free.  But in their race to pay off all loans, they end up in a riskier position with limited cash flow and limited cash.  All their cash flow is going to pay off loans, and all their cash is paying down loans, rather than building up assets.

Financial freedom is the position that you have income from assets greater than your expenses.  While lower expenses are an easier position to build economic freedom from, you still need to acquire income-producing assets.  Being debt free with no liability payments DOES NOT EQUAL being financially free with cash flow from assets.

Are You Debt Free?

To take stock of where you stand, take this simple quiz to find out if you are debt free.

  1. Do I owe any money to anyone else at interest?
    If NO, you have no liabilities and are not in debt.
    If YES, you have a liability. Proceed to Question 2.
  2. Do I have assets that could pay this off now?
    If YES, you have a liability but are DEBT FREE.
    If NO, you have liabilities and are in debt.

Seize Your Financial Freedom

Now you have a choice to make.  You can either proceed the hard way or the easy way.

The hard way will waste years delaying or aborting your financial freedom by getting mad at your debt and putting everything extra towards paying it off.

The easy way will shave off years of frustration.  To gain confidence and balance your whole personal economy, you want the most cash and cash flow in your control.

If you would like to assess your cash flow and net worth and design a personalized strategy to pay off loans in a way that puts you in control, fix your sights on time and money freedom.  To jump into the driver’s seat of your financial life, contact us and schedule a Financial Picture Conversation.

This FREE conversation will help you:

  • Discover dollars flowing into and out of your control
  • Strategize ways to get more dollars flowing into your control
  • So that the End Result is that you have more money to retain and utilize during your lifetime and more to pass on to future generations

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

]]>
Becoming debt free is often listed as a notch on the belt of financial progress. It’s widely discussed, admired, longed for, celebrated, and even praised by so-called financial experts.  But, paying off debt may be risky or even altogether unnecessary.... financial experts.  But, paying off debt may be risky or even altogether unnecessary.  In fact, you’re probably not in debt in the first place!  We want you to be debt free, but you first have to know what that means.  Many confuse being debt free with being liability free.  Before you decide whether to add becoming debt free to your checklist, let’s get the skinny on what debt is.  Then, you can take action that gives you the most certainty, control, and peace of mind.

To help you gain clarity on your debt position and know what to do about it, we’ll answer:

* What is debt?
* Am I in debt?
* Will a debt-free goal help or hurt me?
* More importantly, to reach my goals, gain confidence, peace of mind, time and money freedom, what should I do about debt?

This conversation will help you develop a big picture perspective of a balanced personal economy.

Rather than spiraling out of control, you’ll gain control, options, and increased financial capabilities.

 


Why Becoming Debt Free Seems Like Such a Big Deal
Let’s face it; most people fear debt. They feel it’s an encumbrance or ensnarement that nullifies their goals.  If it was in a game of Taboo, it’s almost a dirty word that lives with other deplorable financial conditions, like losing money, bad credit, foreclosure, and bankruptcy.

Why does debt strike at the chord of our financial aspirations so much so that ringing the debt-free bell seems like such a milestone?

Often families start off saddled in student loan debt.  Because there’s not much cash, they add car loans, a mortgage, and credit card debt to achieve their lifestyle.  They work a job to pay it off, while also balancing buying a house and saving for their future.  But the more debt you have, the harder it seems to pay it off because you feel tighter each month.  The debt seems like a slippery slope that can easily have you feeling that forward progress is all but impossible.  To be debt free might seem like the best way to get back on track.

Maybe looking at the debt payments each month is an arrow to the heart, reminding you of past mistakes.  To be debt free would mean to be free of the pain of guilt.

Because a balanced financial life seems unachievably complex, looking at it one piece at a time might feel more manageable and doable.  Becoming debt free might be that one step you think you can really accomplish.

However, putting all your emphasis on paying off debt can be detrimental when it causes you to lose control and delay your journey to financial freedom.
Where Debt Fits into Your Cash Flow System
Dealing with debt is just one step in the big picture of the Survival to Significance Cash Flow System.

Debt is part of your cash flow in the foundational stage.  How you handle debt has the potential to increase or decrease your cash flow and financial control, accelerating or slowing your path to time and money freedom.

The more cash flow you have today, the more quickly you can accelerate time and money freedom.
How to Determine If You’re in Debt and What to Do About It
To start off the conversation on a high note, you probably aren’t in debt in the first place.

At the fundamental level, the stress and anxiety about debt are fueled by a simple misunderstanding of the difference between a debt and a liability.
Spoiler alert: a liability is not the same thing as debt.
For this conversation, we’ll discuss your financial statements so you can find out what it really mea...]]>
Bruce Wehner & Rachel Marshall clean 55:22
Spartan Invest: Turnkey Real Estate Done Right, with Maureen McCann – TMA 036 https://themoneyadvantage.com/spartan-invest-turnkey-real-estate-done-right-maureen-mccann/ Mon, 16 Jul 2018 09:00:31 +0000 https://themoneyadvantage.com/?p=2451 Spartan Invest offers the opportunity to benefit easily from real estate investing.  Investors secure the tax advantages of real estate ownership and earn cash flow, without industry knowledge, maintenance, or management headaches.  If you’re looking for a way to get started in real estate investing or build a portfolio, consider the income-generating asset of single-family rental real estate in the renaissance city of Birmingham, Alabama.  In this interview with Maureen McCann, VP of Spartan Invest, we’ll answer: What is turnkey real estate? How can I use turnkey real estate to build cash flow from assets? What do I look for in a turnkey real estate provider? Why might I want to invest with Spartan Invest? How can I gain confidence when investing in properties outside my local area? Why Birmingham, Alabama? When buying rental real estate, should I finance or pay cash?   Where Does Turnkey Real Estate Fit in the Cash Flow System? We are evangelists for cash flow because cash flow is your ticket to time and money freedom. Investing in cash-flowing assets is part of the third stage of the Cash Flow System. Once you have a stocked emergency/opportunity fund, you now have a pool of capital that’s ready to invest. To accelerate your cash flow, you need to identify cash-flowing assets and develop an acquisition strategy. By introducing you to opportunities that could help you accomplish your goals, we want to expand your cash-flow investing options. Real estate has long been an asset choice of the wealthy to create cash flow income. If you’re looking for a way to increase your cash flow, producing income in low-risk alternative investments outside the stock market, turnkey real estate with Spartan Invest may help you accomplish your goals. Who Is Maureen McCann? Maureen’s Role at Spartan Invest Maureen McCann is a partner and owner, and the VP of Sales and Marketing at Spartan Invest. She has over ten years of sales and marketing experience in the turnkey marketplace. Having served as an Investment Property coach for years, Maureen is skilled at helping clients build turnkey cash flow portfolios. Maureen has helped hundreds of investors build the type of rental portfolios necessary to reach their short-term & long-term monthly passive income goals. Investing in turnkey real estate for long-term wealth generation is something Maureen understands intimately. Whether clients want to replace their current income with passive income or are simply looking to supplement their retirement, Maureen can help design the right portfolio with the right end goal in mind. With an incredible work ethic and an unquenchable thirst for knowledge, Maureen helps provide peace of mind while investing in premium income-generating properties. She spends time coaching her clients on the wealth-building principles that will help her clients and their families protect their capital and mitigate the loss of their capital while investing in real estate. Maureen excels in providing trusted, reliable, knowledgeable consulting to assist you with building your real estate portfolio. Maureen’s Backstory Maureen was a blue-collar kid who grew up in New Jersey, paid her way through college while waiting tables, and earned her degree in Exercise Physiology because it was the one program that did not require Calculus. She was a W2 wage earner for 15 years in Pharmaceuticals and Medical Device sales, and then stumbled into real estate in 2008 when she lost 50% of her 401K overnight and navigated her way towards turnkey real estate and passive income using her will for wanting to know what the rich knew that she didn’t know but was determined to find out. Rich Dad Poor Dad set a new course for her life, and with the paradigm shift that occurred, she was well on her way to living a different life, with a different mindset with different outcomes leading her to live her life as a version of her highest ... Spartan Invest offers the opportunity to benefit easily from real estate investing.  Investors secure the tax advantages of real estate ownership and earn cash flow, without industry knowledge, maintenance, or management headaches.  If you’re looking for a way to get started in real estate investing or build a portfolio, consider the income-generating asset of single-family rental real estate in the renaissance city of Birmingham, Alabama.

In this interview with Maureen McCann, VP of Spartan Invest, we’ll answer:

  • What is turnkey real estate?
  • How can I use turnkey real estate to build cash flow from assets?
  • What do I look for in a turnkey real estate provider?
  • Why might I want to invest with Spartan Invest?
  • How can I gain confidence when investing in properties outside my local area?
  • Why Birmingham, Alabama?
  • When buying rental real estate, should I finance or pay cash?

 

Where Does Turnkey Real Estate Fit in the Cash Flow System?

We are evangelists for cash flow because cash flow is your ticket to time and money freedom.

Investing in cash-flowing assets is part of the third stage of the Cash Flow System.

Once you have a stocked emergency/opportunity fund, you now have a pool of capital that’s ready to invest. To accelerate your cash flow, you need to identify cash-flowing assets and develop an acquisition strategy.

By introducing you to opportunities that could help you accomplish your goals, we want to expand your cash-flow investing options.

Real estate has long been an asset choice of the wealthy to create cash flow income.

If you’re looking for a way to increase your cash flow, producing income in low-risk alternative investments outside the stock market, turnkey real estate with Spartan Invest may help you accomplish your goals.

Who Is Maureen McCann?

Maureen’s Role at Spartan Invest

Maureen McCann is a partner and owner, and the VP of Sales and Marketing at Spartan Invest.

She has over ten years of sales and marketing experience in the turnkey marketplace. Having served as an Investment Property coach for years, Maureen is skilled at helping clients build turnkey cash flow portfolios. Maureen has helped hundreds of investors build the type of rental portfolios necessary to reach their short-term & long-term monthly passive income goals. Investing in turnkey real estate for long-term wealth generation is something Maureen understands intimately.

Whether clients want to replace their current income with passive income or are simply looking to supplement their retirement, Maureen can help design the right portfolio with the right end goal in mind. With an incredible work ethic and an unquenchable thirst for knowledge, Maureen helps provide peace of mind while investing in premium income-generating properties.

She spends time coaching her clients on the wealth-building principles that will help her clients and their families protect their capital and mitigate the loss of their capital while investing in real estate. Maureen excels in providing trusted, reliable, knowledgeable consulting to assist you with building your real estate portfolio.

Maureen’s Backstory

Maureen was a blue-collar kid who grew up in New Jersey, paid her way through college while waiting tables, and earned her degree in Exercise Physiology because it was the one program that did not require Calculus.

She was a W2 wage earner for 15 years in Pharmaceuticals and Medical Device sales, and then stumbled into real estate in 2008 when she lost 50% of her 401K overnight and navigated her way towards turnkey real estate and passive income using her will for wanting to know what the rich knew that she didn’t know but was determined to find out.

Rich Dad Poor Dad set a new course for her life, and with the paradigm shift that occurred, she was well on her way to living a different life, with a different mindset with different outcomes leading her to live her life as a version of her highest and best self.

Interview Highlights

Maureen’s Story

[9:18] Inflation eats away at your income, causing you to go broke slowly without even realizing it.

[11:39] Because of Maureen’s paradigm shift when she read Rich Dad Poor Dad, she decided to become a business owner/investor and create wealth through multiple streams of income.

What Is Turnkey Real Estate?

[19:30] A truly turnkey real estate operator purchases, renovates, and sells the property, places a tenant, and manages the cash-flowing asset for their investor/buyer.

Spartan’s Mission and Model

[20:00] Spartan’s mission is to help investors get out of the rat race and create multiple streams of income through the ownership of single-family rental properties in Birmingham, Alabama.

How Do I Find a Good Turnkey Real Estate Provider?

[20:51] Spartan’s pay-for-performance business model appeals to the busy professional who wants the tax advantages and cash flow of owning single-family rental properties but doesn’t want to take the time to manage it themselves.Spartan Invest Rate of Return

[22:30] When investing in real estate out of your local area, you want to know the provider’s goals are aligned with yours.  Is the provider’s income dependent on the investor making money?  Can you tour the properties if you want to?  The answer to both of these questions at Spartan Invest is yes!

[25:50] What is the motivation and culture of the provider’s team?

[27:55] Spartan has grown from 0 to 679 properties under management, and from $0 to over $27 Million in revenue in under five years.  The reason Spartan has succeeded is that they answer their phones and call people back, do what they say they’re going to do, and make sure the client is satisfied.

Why Birmingham?

[29:20] Birmingham, Alabama is a true American revival and renaissance story.  They brought big corporations and jobs to the city by changing tax policies and making Alabama a business-friendly state, securing foreign capital in the automotive, e-commerce fulfillment, and tech industries.

Spartan’s Niche

[36:00] Spartan focuses on single-family properties in B Class neighborhoods, with a median income of $50,000/year.  The neighborhoods have low crime rates, schools ranking between 3 and 7, and no boarded-up houses or graffiti.  They are safe, boring neighborhoods with homes built between the 1950’s and the late 1980’s, that rent for $800 – $1300/month.

[38:15] 53% of people in Birmingham rent, primarily because of a cultural and generational mindset. Spartan provides a place for people to live, and the renters give the investors cash flow, pay down the principal, and provide tax advantages.

Spartan’s Process

[44:00] The Spartan process includes full renovation with long-term durable materials to defer maintenance as long as possible for the investors.  They replace any roof, HVAC, and water heater older than six years. The interior is all hardscape, with refinished hardwood floors or luxury vinyl plank tile in the living spaces and bedrooms, ceramic tile in the kitchen and bath, and granite kitchen countertops.

[47:15] Spartan mitigates vacancy rates and maintenance expenses to protect investor capital and give consistent year over year returns.  Their current maintenance ratio is 3.1%.

Investing and Cash Value Life Insurance

[48:30] There are three main goals of passive income: create cash flow, protect your assets, and mitigate your tax liabilities.  After earning cash flow from the property, you can store it in cash value life insurance to boost investment returns.  When you’ve built up cash value, you can use it again by borrowing against it tax-free for other investments.  Cash value life insurance is an excellent tool to use with real estate investing to lower your tax liability.

Paying Cash, Financing, and Rate of Return

[50:13] Should you pay cash or finance real estate investments?  The rate of return on equity is what you make, divided by what you have in on the deal.  Financing is better for the investor than purchasing with cash and will give you a higher rate of return.  The power of leverage is that it gets your money working harder for you.

[56:15] When Spartan investors finance, they can expect a 16 – 19% annualized net return.  If they pay cash, returns are between 8.5 – 9.5%.

Property Management

[57:20] Ensuring that the property manager is working for the investor is one of the most difficult parts of the business.  Spartan Invest has a unique process that balances the needs of the tenant and the investor.  Their goal is to achieve a win-win-win relationship.

Maureen’s Book Recommendations:

Find Out More About Spartan Invest

Get the Six Big Reasons to Invest in the Magic City, Birmingham, Alabama to read more about the market’s population growth, job growth, and diversity of industry.

To find out more about Spartan Invest you can check out their website: spartaninvest.com.

Maximize Your Cash Flow and Tax Advantages

If you would like to create a comprehensive strategy to most effectively store your capital where you have safety, liquidity, and growth AND invest in cash-flowing assets to build time and money freedom, contact us to request your free Financial Picture Conversation.

We’ll help you determine if it’s the right time to grow your real estate portfolio with turnkey real estate investing.

This conversation will help you maximize your wealth today and, in the future, by:

  • Discovering money flowing into your control and money flowing out of your control
  • Strategizing ways to have more money flowing into your control
  • With the End Result being more money to utilize during your lifetime, and more to give to future generations

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

SaveSave

SaveSave

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Spartan Invest offers the opportunity to benefit easily from real estate investing.  Investors secure the tax advantages of real estate ownership and earn cash flow, without industry knowledge, maintenance, or management headaches. 
In this interview with Maureen McCann, VP of Spartan Invest, we’ll answer:

* What is turnkey real estate?
* How can I use turnkey real estate to build cash flow from assets?
* What do I look for in a turnkey real estate provider?
* Why might I want to invest with Spartan Invest?
* How can I gain confidence when investing in properties outside my local area?
* Why Birmingham, Alabama?
* When buying rental real estate, should I finance or pay cash?

 


Where Does Turnkey Real Estate Fit in the Cash Flow System?
We are evangelists for cash flow because cash flow is your ticket to time and money freedom.

Investing in cash-flowing assets is part of the third stage of the Cash Flow System.

Once you have a stocked emergency/opportunity fund, you now have a pool of capital that’s ready to invest. To accelerate your cash flow, you need to identify cash-flowing assets and develop an acquisition strategy.

By introducing you to opportunities that could help you accomplish your goals, we want to expand your cash-flow investing options.

Real estate has long been an asset choice of the wealthy to create cash flow income.

If you’re looking for a way to increase your cash flow, producing income in low-risk alternative investments outside the stock market, turnkey real estate with Spartan Invest may help you accomplish your goals.
Who Is Maureen McCann?
Maureen’s Role at Spartan Invest
Maureen McCann is a partner and owner, and the VP of Sales and Marketing at Spartan Invest.

She has over ten years of sales and marketing experience in the turnkey marketplace. Having served as an Investment Property coach for years, Maureen is skilled at helping clients build turnkey cash flow portfolios. Maureen has helped hundreds of investors build the type of rental portfolios necessary to reach their short-term & long-term monthly passive income goals. Investing in turnkey real estate for long-term wealth generation is something Maureen understands intimately.

Whether clients want to replace their current income with passive income or are simply looking to supplement their retirement, Maureen can help design the right portfolio with the right end goal in mind. With an incredible work ethic and an unquenchable thirst for knowledge, Maureen helps provide peace of mind while investing in premium income-generating properties.

She spends time coaching her clients on the wealth-building principles that will help her clients and their families protect their capital and mitigate the loss of their capital while investing in real estate. Maureen excels in providing trusted, reliable, knowledgeable consulting to assist you with building your real estate portfolio.
Maureen’s Backstory
Maureen was a blue-collar kid who grew up in New Jersey, paid her way through college while waiting tables, and earned her degree in Exercise Physiology because it was the one program that did not require Calculus.

She was a W2 wage earner for 15 years in Pharmaceuticals and Medical Device sale...]]>
Bruce Wehner & Rachel Marshall clean 1:08:19
Who Are the Financial Experts? – TMA 035 https://themoneyadvantage.com/who-are-financial-experts/ Mon, 09 Jul 2018 09:00:18 +0000 https://themoneyadvantage.com/?p=2414 How do you know if the advice of financial experts applies to you?  In fact, who are the financial experts?  Does fame or popularity make someone an expert? What about having the biggest stage or the largest reach?  Is it a degree, certification, or credential that qualifies them?  Instead, the litmus test for a financial expert is that they give uncommon advice to people with uncommon income and uncommon goals.  To help you decide who to listen to in making educated financial choices to secure your future, we’ll answer: How do I decide who to take advice from? Who are the financial experts? How do I make sure I’m following the advice that leads me to my goals? How do education, personal responsibility, and the right guide work together? We’ll help you gain confidence in who to listen to and how to apply advice in your specific situation, without guessing, having to DIY, or blindly trusting someone with your money. You’ll go from overwhelmed with the financial noise, to confidently tuning in to what aligns and tuning out what doesn’t align with your goals. Instead of getting stuck trying to figure everything out, you’ll have the information to take action and make progress. You’ll gain confidence as you see a clear path from where you are to where you want to be, rather than wasting time wondering whether you’re going in the right direction. Where Financial Experts Fit into Your Cash Flow System Finding out who the financial experts are is just one step in the greater Survival to Significance Cash Flow System.  Once you’ve discovered who the financial experts are, you decide which of the four ways you want to implement their advice. Identifying the financial experts and implementing financial advice make up a micro-step in the bigger picture of gaining time and money freedom.  Here’s how: Deciding who to listen to is part of the foundation of your mindset and how you think about money. While your mindset may be the least tangible of all of the 9 steps, it’s critical to your success.  Don’t ignore or skip the mindset step.  Your thinking opens the door to all your financial possibilities and brings everything else into focus. The Critical Need for Education and the Battle to Find It Financial competency is the most ironic adult life skill.  We’re not taught in school how money works, how to make it, how to set goals, or how to arrive at our intended destination.  Yet we spend almost 100% of our waking hours in pursuit of making money, spending it, or thinking about it. If you aspire to transcend your current ranks and carve out a future of confidence, meaning, and security, it’s up to you to figure it out.  So as an adult that’s mastered the education system, and probably marriage, family, and a career, you still have to figure out what to do about money. Realizing that your financial independence is up to you is the first wake-up call. The second is when you become aware of the sea of “financial education” that doesn’t agree or stack up, and  you have the responsibility of figuring out who knows what’s going on that you should be listening to. The Noise If you’ve been on the financial education path for a while, you’ve noticed the slew of conflicting information. If opinions were highway road signs, one sign would read, “Retirement This Way.  20 Years Ahead.  Guaranteed.”  Another sign pointing the same direction would warn, “Danger Ahead.  Do Not Enter.” Confusion and chaos would abound.  Either everyone would be darting this way and that, trying to make sense out of it all and crashing into each other.  Or in despair, they might give up, hit the e-brake, and resign themselves to not figuring it out.  They might even start ignoring the signs and follow the crowd, hoping they aren’t all wrong. Likewise, if you tuned in to all the financial advice and opinions from self-proclaimed financial experts on tv and radio, financial advisors and institutions, How do you know if the advice of financial experts applies to you?  In fact, who are the financial experts?  Does fame or popularity make someone an expert? What about having the biggest stage or the largest reach?  Is it a degree, certification, 
To help you decide who to listen to in making educated financial choices to secure your future, we’ll answer:

* How do I decide who to take advice from?
* Who are the financial experts?
* How do I make sure I’m following the advice that leads me to my goals?
* How do education, personal responsibility, and the right guide work together?

We’ll help you gain confidence in who to listen to and how to apply advice in your specific situation, without guessing, having to DIY, or blindly trusting someone with your money.

You’ll go from overwhelmed with the financial noise, to confidently tuning in to what aligns and tuning out what doesn’t align with your goals.

Instead of getting stuck trying to figure everything out, you’ll have the information to take action and make progress.

You’ll gain confidence as you see a clear path from where you are to where you want to be, rather than wasting time wondering whether you’re going in the right direction.


Where Financial Experts Fit into Your Cash Flow System
Finding out who the financial experts are is just one step in the greater Survival to Significance Cash Flow System.  Once you’ve discovered who the financial experts are, you decide which of the four ways you want to implement their advice.

Identifying the financial experts and implementing financial advice make up a micro-step in the bigger picture of gaining time and money freedom.  Here’s how:

Deciding who to listen to is part of the foundation of your mindset and how you think about money.

While your mindset may be the least tangible of all of the 9 steps, it’s critical to your success.  Don’t ignore or skip the mindset step.  Your thinking opens the door to all your financial possibilities and brings everything else into focus.
The Critical Need for Education and the Battle to Find It
Financial competency is the most ironic adult life skill.  We’re not taught in school how money works, how to make it, how to set goals, or how to arrive at our intended destination.  Yet we spend almost 100% of our waking hours in pursuit of making money, spending it, or thinking about it.

If you aspire to transcend your current ranks and carve out a future of confidence, meaning, and security, it’s up to you to figure it out.  So as an adult that’s mastered the education system, and probably marriage, family, and a career, you still have to figure out what to do about money.

Realizing that your financial independence is up to you is the first wake-up call.

The second is when you become aware of the sea of “financial education” that doesn’t agree or stack up, and  you have the responsibility of figuring out who knows what’s going on that you should be listening to.
The Noise
If you’ve been on the financial education path for a while, you’ve noticed the slew of conflicting information.

If opinions were highway road signs, one sign would read, “Retirement This Way.  20 Years Ahead.  Guaranteed.”  Another sign pointing the same direction would warn, “Danger Ahead.  Do Not Enter.”

Confusion and chaos would abound.  Either everyone would be darting this way and that, trying to make sense out of it all and crashing into each other.]]>
Bruce Wehner & Rachel Marshall clean 39:34
Lessons from a Commercial Multifamily Investor, with Paul Moore – TMA 034 https://themoneyadvantage.com/paul-moore-commercial-multifamily-investor/ Mon, 02 Jul 2018 09:00:07 +0000 https://themoneyadvantage.com/?p=2295 In this fascinating interview with Paul Moore, we discussed opportunities for investors to build generational wealth through commercial multifamily investing.  Unfortunately, there are high barriers to entry into this investment sector.  New investors to this space may lack the capital requirements, loan qualifications, and experience needed to gain a seat at the table.  Through real estate investment firm, Wellings Capital, Paul Moore is making this asset class available to investors who would otherwise lack access.  Wellings is a syndicator that allows investors to pool their funds to get the advantages of direct ownership of commercial multifamily real estate, along with its high returns, tax advantages, and low risk. You’ll gain powerful business insights as you hear Paul share his thought-provoking and honest story.  He confidently shares his monumental accomplishments and the significant failures that accompanied them along the way.  When you listen, be prepared to learn just as much from his successes as from his stories of failure. Paul Moore is masterful in business and marketing.  You’ll come away with a new appreciation for continuous learning and reinvention, solving problems for others, and staying congruent with your life mission. Who Is Paul Moore? After graduating with an engineering degree and then an MBA from Ohio State, Paul entered the management development track at Ford Motor Company in Detroit. After five years, he departed to start a staffing company with a partner. They sold it to a publicly traded firm five years later for $2.9 million. Along the way, Paul was a finalist for Ernst & Young’s Michigan Entrepreneur of the Year two years straight (1996 & 1997). Paul later entered the real estate sector, where he flipped over 50 homes and 25 high-end waterfront lots, appeared as the only REALTOR® on HGTV’s House Hunters for a waterfront week special, rehabbed and managed rental properties, built many new homes, developed a subdivision, and started two successful online real estate marketing firms. He also built several other companies and made quite a few medium and high-risk investments along the way. Paul’s Most Important Business Lessons High Risk Does Not Equal High Returns People often think that to get high returns, they have to take on high risk. Instead of high risk leading to high returns, Paul Moore says that high risk leads to the potential of high returns, and more so to the potential of higher loss.  Often, people think they’re investing, when really, they’re speculating or gambling. Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas. – Paul Samuelson, the First American to win the Nobel Prize in Economics According to Paul, investing is when your principal is safe, and you have a chance to make a return. In contrast, the definition of speculating is when your principal is not at all safe, and there’s a chance to make a return. His wisdom comes from several experiences speculating when he thought he was investing, and consequently, losing a lot of money. The Importance of Giving There is a universal law that you will get back in proportion to what you give. When Paul was $2.5 Million in debt in 2007, he decided to model George Mueller’s heroic story of giving.  Paul made the most counterintuitive decision to give his way out of debt.  He challenged his family to give weekly as if they were making $500,000 a year, a decision that was painful and challenging at the time. A few weeks later, in a providential conversation with a developer, Paul discovered a loophole in the law that prevented subdividing property.  He was able to use that law to subdivide a very valuable waterfront property.  In 13 months, he was miraculously and entirely out of debt. Knowing When to Quit Two of the great truths that Paul has learned through the How to Lose Money podcast are these two op... In this fascinating interview with Paul Moore, we discussed opportunities for investors to build generational wealth through commercial multifamily investing.  Unfortunately, there are high barriers to entry into this investment sector. 
Through real estate investment firm, Wellings Capital, Paul Moore is making this asset class available to investors who would otherwise lack access.  Wellings is a syndicator that allows investors to pool their funds to get the advantages of direct ownership of commercial multifamily real estate, along with its high returns, tax advantages, and low risk.

You’ll gain powerful business insights as you hear Paul share his thought-provoking and honest story.  He confidently shares his monumental accomplishments and the significant failures that accompanied them along the way.  When you listen, be prepared to learn just as much from his successes as from his stories of failure.

Paul Moore is masterful in business and marketing.  You’ll come away with a new appreciation for continuous learning and reinvention, solving problems for others, and staying congruent with your life mission.


Who Is Paul Moore?
After graduating with an engineering degree and then an MBA from Ohio State, Paul entered the management development track at Ford Motor Company in Detroit.

After five years, he departed to start a staffing company with a partner. They sold it to a publicly traded firm five years later for $2.9 million.

Along the way, Paul was a finalist for Ernst & Young’s Michigan Entrepreneur of the Year two years straight (1996 & 1997).

Paul later entered the real estate sector, where he flipped over 50 homes and 25 high-end waterfront lots, appeared as the only REALTOR® on HGTV’s House Hunters for a waterfront week special, rehabbed and managed rental properties, built many new homes, developed a subdivision, and started two successful online real estate marketing firms.

He also built several other companies and made quite a few medium and high-risk investments along the way.
Paul’s Most Important Business Lessons
High Risk Does Not Equal High Returns
People often think that to get high returns, they have to take on high risk.

Instead of high risk leading to high returns, Paul Moore says that high risk leads to the potential of high returns, and more so to the potential of higher loss.  Often, people think they’re investing, when really, they’re speculating or gambling.
Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas. – Paul Samuelson, the First American to win the Nobel Prize in Economics
According to Paul, investing is when your principal is safe, and you have a chance to make a return.

In contrast, the definition of speculating is when your principal is not at all safe, and there’s a chance to make a return.

His wisdom comes from several experiences speculating when he thought he was investing, and consequently, losing a lot of money.
The Importance of Giving
There is a universal law that you will get back in proportion to what you give.

When Paul was $2.5 Million in debt in 2007, he decided to model George Mueller’s heroic story of giving.]]>
Bruce Wehner & Rachel Marshall clean 50:31
The Biggest Thing You Can Do to Increase Your Cash Flow – TMA 033 https://themoneyadvantage.com/biggest-thing-you-can-do-to-increase-your-cash-flow/ Mon, 25 Jun 2018 09:00:57 +0000 https://themoneyadvantage.com/?p=2265 The #1 most effective way to increase your cash flow today is to think like the bank.  Banking generates voluminous cash flow.  There are rules for how the bank operates that have established banking as the most powerful business model in the world.  You can follow these rules to increase your cash flow, starting from whatever income you have today.  This secret hidden in plain sight is the catalyst to increase your cash flow and take control of your financial destiny, without cutting back, working harder, or taking on more risk. Let’s build your bridge to time and money freedom by increasing your cash flow with the one most powerful step.  We’ll answer: Why focus on cash flow? What is cash flow? How do I increase my cash flow? We’ll give you the seven rules banks use that give them the upper hand. When you utilize these rules in your own economy, you’ll stop having so many dollars flow out of your hands, and you’ll start keeping and controlling more of your money. You’ll leverage the magic of compound interest, so you earn it, instead of paying it. Instead of making costly mistakes by following typical advice, you’ll think for yourself and take control. Rather than building the empires of banks, Wall Street, and financial institutions, you’ll begin building your own financial destiny.   Where Increasing Your Cash Flow Fits into the Cash Flow System It may seem obvious that increasing your cash flow is a critical component of your cash flow system.  I mean, that’s the part of your life that is all about cash flow, right?  But here’s how it fits in the bigger picture exactly: The Cash Flow System moves you from survival, with little to no cash flow, to significance, where you have abundant cash flow from assets. In the foundational phase, you start by keeping more of the money you make.  In the next phase, you protect your money.  Finally, you make more money and increase your cash flow. Thinking like a bank is part of all three stages and allows you to increase your cash flow. Most importantly, it’s part of your mindset in the foundational phase.   Your mindset is what allows you to reduce your money leaks and keep more of your money. In the second phase, thinking like a bank allows you to protect your money, earn uninterrupted compound interest, and save like the wealthy. Finally, employing banking principles allows you to utilize cash-flowing assets to build time and money freedom. What Is Cash Flow? Cash flow is when you have more money at the end of your month. Cash flow is the money that you’re not using up each month, that you can instead set aside and store up.  When you have cash flow, you have money left over in your monthly economy. Determine your current monthly cash flow with this simple equation: Cash Flow = Income – Expenses Having more cash flow gives you more options, and options give you freedom and control. Two Levels of Cash Flow There are two levels of cash flow.  The difference between the two is the source of your income. The first level we’ll call cash flow from income.  This is the most common income source.   When you have cash flow from income, your primary income source is a job. Of those wages, you spend less than you earn. The second level is cash flow from assets.  In this position, you have assets like rental real estate or self-sustaining businesses that do not require you to put in your time to generate a profit.  Your assets provide more income than you spend. This is the most desirable source of income and is the pinnacle of cash flow achievement. Why Focus on Cash Flow Now? Let's answer the question, why cash flow today?  You master time and money freedom when you’re in a position with income from your assets that exceeds your expenses. For example, a person with lifestyle expenses of $10,000 each month who has an income of $10,000 from business and real estate has reached time and money freedom. The #1 most effective way to increase your cash flow today is to think like the bank.  Banking generates voluminous cash flow.  There are rules for how the bank operates that have established banking as the most powerful business model in the world.
Let’s build your bridge to time and money freedom by increasing your cash flow with the one most powerful step.  We’ll answer:

* Why focus on cash flow?
* What is cash flow?
* How do I increase my cash flow?

We’ll give you the seven rules banks use that give them the upper hand.

When you utilize these rules in your own economy, you’ll stop having so many dollars flow out of your hands, and you’ll start keeping and controlling more of your money.

You’ll leverage the magic of compound interest, so you earn it, instead of paying it.

Instead of making costly mistakes by following typical advice, you’ll think for yourself and take control.

Rather than building the empires of banks, Wall Street, and financial institutions, you’ll begin building your own financial destiny.

 


Where Increasing Your Cash Flow Fits into the Cash Flow System
It may seem obvious that increasing your cash flow is a critical component of your cash flow system.  I mean, that’s the part of your life that is all about cash flow, right?  But here’s how it fits in the bigger picture exactly:

The Cash Flow System moves you from survival, with little to no cash flow, to significance, where you have abundant cash flow from assets.

In the foundational phase, you start by keeping more of the money you make.  In the next phase, you protect your money.  Finally, you make more money and increase your cash flow.

Thinking like a bank is part of all three stages and allows you to increase your cash flow.

Most importantly, it’s part of your mindset in the foundational phase.   Your mindset is what allows you to reduce your money leaks and keep more of your money.

In the second phase, thinking like a bank allows you to protect your money, earn uninterrupted compound interest, and save like the wealthy.

Finally, employing banking principles allows you to utilize cash-flowing assets to build time and money freedom.
What Is Cash Flow?
Cash flow is when you have more money at the end of your month.

Cash flow is the money that you’re not using up each month, that you can instead set aside and store up.  When you have cash flow, you have money left over in your monthly economy.

Determine your current monthly cash flow with this simple equation:
Cash Flow = Income – Expenses
Having more cash flow gives you more options, and options give you freedom and control.
Two Levels of Cash Flow
There are two levels of cash flow.  The difference between the two is the source of your income.

The first level we’ll call cash flow from income.  This is the most common income source.   When you have cash flow from income, your primary income source is a job. Of those wages, you spend less than you earn.

The second level is cash flow from assets.]]>
Bruce Wehner & Rachel Marshall clean 56:39
Ted Benna: Reflections from the “Father of the 401(k)” – TMA 032 https://themoneyadvantage.com/ted-benna-father-401k/ Mon, 18 Jun 2018 09:00:15 +0000 https://themoneyadvantage.com/?p=2237 If you listen to the “financial experts” on tv or the radio, you will hear the typical blanket advice that you should put money into a 401(k).  But the question is, does that advice apply to everybody?  To get as much of an insider’s perspective as we could find, we interviewed Ted Benna, "inventor" of the 401(k).  During this insightful conversation, we discussed the purpose of the 401(k), its history, shortcomings, and the need for reform.  This interview was forthright about why there’s a coming retirement crisis and what you can do about it if you want to take control of your financial destiny. In this episode, we’ll help you answer: What does the 401(k) help me accomplish? Is the 401(k) right for me? If you remember in How to Find Your Best Investments, we discussed that your investing strategy will be unique to you.  You maximize your gains when you take an active role in investing in what you know and control. So, where does the 401(k) fit for you?   Individual Goals Create Individual Strategies Here at The Money Advantage, our objectives are to help you keep and control more of your money.  As an entrepreneur, you want control, access to your money, liquidity, cash flow, and tax advantages as possible.  A 401(k) doesn’t support those goals. However, to promote your education, it’s valuable to round out your perspective by considering the full discussion.  When you increase your knowledge, you gain the ability to make decisions and build confidence that you’re doing what’s best. Whether or not a 401(k) is a fit for you, it’s in your best interest to understand them.  401(k)s may be a part of providing solutions. The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function. – F. Scott Fitzgerald In this previous conversation about abundance, we discussed why being open-minded and considering contrasting information is critical to learning: Unless you’re willing to expand your map, nothing new exists for you.  When we come into a conversation with people who see differently, it’s important to recognize that if we both had the same map, we’d think the same way. When we each defend our own interpretation of the facts, it leads to conflict.  The only way you can learn something new is to be willing to step off of your map and onto someone else’s.  It’s not about who’s right, but about learning what else is possible. Today, we’re jumping onto the map of someone with a different perspective so that we can expand our own map.  We invite you to do the same. Different Perspectives While you’ll notice a great deal of common ground in our philosophy and perspective, we don’t agree on everything.  We do agree that there are problems, but we do not completely agree about how to solve them. One specific distinction is that we do not view putting money in a 401(k) to be savings. We agree that it’s crucial to have a systematic way of setting money aside for the future before spending.  The 401(k) has provided a method for hundreds of thousands of people to invest over $10 Trillion. However, a 401(k) fails to meet the criteria of being a savings tool.  Savings is safe from the risk of market loss, liquid and growing.  A 401(k) is typically invested in stocks and mutual funds, exposing the balance to the risk of market volatility and loss of account value. Additionally, it has significant limitations on accessibility, making it unsuitable for storing your emergency/opportunity fund. Where Does the 401(k) Fit in the Cash Flow System? To gain perspective, let’s zoom out to look at an optimized personal economy. In the first phase of the Cash Flow System, you build a foundation to keep more of the money you make.  Then in the second phase, you protect your money.  Finally, in the third phase, you increase your money and make more. 401(k)s may potentially be a part of your investing strategy in th... If you listen to the “financial experts” on tv or the radio, you will hear the typical blanket advice that you should put money into a 401(k).  But the question is, does that advice apply to everybody?  To get as much of an insider’s perspective as we ... 
During this insightful conversation, we discussed the purpose of the 401(k), its history, shortcomings, and the need for reform.  This interview was forthright about why there’s a coming retirement crisis and what you can do about it if you want to take control of your financial destiny.

In this episode, we’ll help you answer:

* What does the 401(k) help me accomplish?
* Is the 401(k) right for me?

If you remember in How to Find Your Best Investments, we discussed that your investing strategy will be unique to you.  You maximize your gains when you take an active role in investing in what you know and control.

So, where does the 401(k) fit for you?

 


Individual Goals Create Individual Strategies
Here at The Money Advantage, our objectives are to help you keep and control more of your money.  As an entrepreneur, you want control, access to your money, liquidity, cash flow, and tax advantages as possible.  A 401(k) doesn’t support those goals.

However, to promote your education, it’s valuable to round out your perspective by considering the full discussion.  When you increase your knowledge, you gain the ability to make decisions and build confidence that you’re doing what’s best.

Whether or not a 401(k) is a fit for you, it’s in your best interest to understand them.  401(k)s may be a part of providing solutions.
The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function. – F. Scott Fitzgerald
In this previous conversation about abundance, we discussed why being open-minded and considering contrasting information is critical to learning:
Unless you’re willing to expand your map, nothing new exists for you.  When we come into a conversation with people who see differently, it’s important to recognize that if we both had the same map, we’d think the same way. When we each defend our own interpretation of the facts, it leads to conflict.  The only way you can learn something new is to be willing to step off of your map and onto someone else’s.  It’s not about who’s right, but about learning what else is possible.
Today, we’re jumping onto the map of someone with a different perspective so that we can expand our own map.  We invite you to do the same.
Different Perspectives
While you’ll notice a great deal of common ground in our philosophy and perspective, we don’t agree on everything.  We do agree that there are problems, but we do not completely agree about how to solve them.

One specific distinction is that we do not view putting money in a 401(k) to be savings.

We agree that it’s crucial to have a systematic way of setting money aside for the future before spending.  The 401(k) has provided a method for hundreds of thousands of people to invest over $10 Trillion.

However, a 401(k) fails to meet the criteria of being a savings tool.  Savings is safe from the risk of market loss, liquid and growing.  A 401(k) is typically invested in stocks and mutual funds, exposing the balance to the risk of market volatility and loss of <...]]>
Bruce Wehner & Rachel Marshall clean 50:10
How to Shop for Insurance Part 3: Life, Health, and Disability Insurance – TMA 031 https://themoneyadvantage.com/how-to-shop-for-insurance-3-life-health-disability-insurance/ Mon, 11 Jun 2018 09:00:28 +0000 https://themoneyadvantage.com/?p=2199 Life, health, and disability insurance protect you, your body, your wellness, and your livelihood.  This range of coverage includes some of the most essential protections. Too often, people ask the wrong questions.  This leads them to draw the wrong conclusions about life, health, and disability insurance.   As a result, many remain drastically underinsured or forgo the protection altogether.  Without maximum life, health, and disability insurance, you leave the things that matter most, exposed to the highest risk.  Asking how to save money on your life, health, and disability insurance is the wrong place to start. First, you want to best protect what's most important to you.  You get the maximum security and protection by securing the best possible, longest lasting, highest quality coverage.  After you find the best coverage, then you can use smart shopping strategies to lower your costs. Here’s straight talk about how to get the best insurance and make every dollar you spend in premium count.   The Whole Series on Insurance In the last five articles, we’ve outlined an insurance philosophy and buying guide to put you in control. Why You Want Insurance Part 1 examined what insurance does. It transfers risk. Why You Want Insurance Part 2 discussed why it matters. It protects your greatest asset. Why You Want Insurance Part 3 covered the cost and answered why you should pay for insurance. It costs more to self-insure. How to Shop for Insurance Part 1 outlined the seven tips to save the most money when shopping for insurance in general. How to Shop for Insurance Part 2 gave guidance on buying home, auto, and business insurance. In This Article Today, we’re capping off the series by focusing on life, disability, and health insurance. We’ll show you how to secure the best life, health, and disability insurance coverage and be efficient with your premium costs.  We’ll answer: How do I best protect what matters most? How do I get the highest quality life, health, and disability insurance? Then, how do I save the most and spend the least on my life, health, and disability insurance? We’ll first walk you through understanding your coverages so you can feel protected and secure.  Then we’ll give you the exact tips to get the most and best value life, health, and disability insurance for the least premium. You’ll gain confidence and peace of mind without giving up any more of your dollars than necessary. More importantly, no matter what happens in your life, your future self will be secure, protected, and grateful.  You’ll be reassured that you made the best decisions in your power. Where Insurance Fits into Your Whole Personal Economy Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System. Your foundation starts with keeping more of the money you make.  Second, you protect what you’ve built.  Finally, you increase your income to create time and money freedom and expand your legacy. Insurance fits in the protection stage.  With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face. Your protection is like a roof on your financial house.  When the shingles are sufficient and cover the whole house, it keeps storms outside your house, preventing them from getting inside and destroying your belongings.  Similarly, when you have adequate insurance protection, your income and assets you’ve built are safe from financial storms that may occur in your life. The Universe of You Imagine drawing concentric circles around you to rank the importance of the things in your life.  At the center, you might find your autonomy, contribution, sense of purpose, meaning and fulfillment.  This also includes the physical and mental capabilities that give you the power to decide and act. In the next, you might find your loved ones and their sense of security, safety, love, and belonging. Life, health, and disability insurance protect you, your body, your wellness, and your livelihood.  This range of coverage includes some of the most essential protections. Too often, people ask the wrong questions. 
Asking how to save money on your life, health, and disability insurance is the wrong place to start. First, you want to best protect what's most important to you.  You get the maximum security and protection by securing the best possible, longest lasting, highest quality coverage.  After you find the best coverage, then you can use smart shopping strategies to lower your costs.

Here’s straight talk about how to get the best insurance and make every dollar you spend in premium count.

 


The Whole Series on Insurance
In the last five articles, we’ve outlined an insurance philosophy and buying guide to put you in control.

* Why You Want Insurance Part 1 examined what insurance does. It transfers risk.
* Why You Want Insurance Part 2 discussed why it matters. It protects your greatest asset.
* Why You Want Insurance Part 3 covered the cost and answered why you should pay for insurance. It costs more to self-insure.
* How to Shop for Insurance Part 1 outlined the seven tips to save the most money when shopping for insurance in general.
* How to Shop for Insurance Part 2 gave guidance on buying home, auto, and business insurance.

In This Article
Today, we’re capping off the series by focusing on life, disability, and health insurance.

We’ll show you how to secure the best life, health, and disability insurance coverage and be efficient with your premium costs.  We’ll answer:

* How do I best protect what matters most?
* How do I get the highest quality life, health, and disability insurance?
* Then, how do I save the most and spend the least on my life, health, and disability insurance?

We’ll first walk you through understanding your coverages so you can feel protected and secure.  Then we’ll give you the exact tips to get the most and best value life, health, and disability insurance for the least premium.

You’ll gain confidence and peace of mind without giving up any more of your dollars than necessary.

More importantly, no matter what happens in your life, your future self will be secure, protected, and grateful.  You’ll be reassured that you made the best decisions in your power.
Where Insurance Fits into Your Whole Personal Economy
Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System.

Your foundation starts with keeping more of the money you make.  Second, you protect what you’ve built.  Finally, you increase your income to create time and money freedom and expand your legacy.

Insurance fits in the protection stage.  With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face.

Your protection is like a  clean 1:07:05
How to Shop For Insurance Part 2: Home and Auto Insurance – TMA 030 https://themoneyadvantage.com/how-to-shop-for-insurance-part-2-home-and-auto-insurance/ Mon, 04 Jun 2018 09:00:38 +0000 https://themoneyadvantage.com/?p=2158 Home and auto insurance are two pillars of insurance protection that are almost universally understood to be necessary. However, when it comes to choosing and paying for coverage, you have nearly infinite options.  The range of coverage details, exemptions, coverage amounts, and limitations add complexity.  This can make shopping for insurance seem like a maze without an exit. Without the knowledge of what to look for, your home and auto insurance can become a costly money leak.  But overwhelm is no reason to pay more than you need to or settle for coverage that’s less than best. Your goal is to pay the least for the best possible coverage.  To help you do that, we want to show you the tricks of the trade.  These insights will help you become more efficient with these coverages, keeping more of your dollars in your pocket. With these strategies, you’ll get the best deals on your home and auto insurance and win at insurance shopping.   In the last article, we gave you the seven tips to save on insurance in general.  Today, we’ll apply that specifically to your home and auto insurance to answer: How do I make the best decisions on my home and auto insurance? How do I shrink my home and auto insurance cost while maximizing my protection? What do I include in my home and auto insurance coverage to get the best for the lowest price? We’ll first walk you through understanding your coverages.  Then we’ll give you the exact tips to get the best value home and auto insurance for the least premium.  You'll feel protected and secure, without mourning the cost. Once we’ve done that, we’ll walk you through the added layer of business insurances.  We'll show you how to maximize your coverage and minimize your costs as you protect one of your most valuable assets. You’ll gain confidence and peace of mind without giving up any more of your dollars in monthly expenses than necessary. Where Insurance Fits into Your Whole Personal Economy Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System. Your foundation starts with keeping more of the money you make.  Second, you protect what you’ve built.  Finally, you increase your income to create time and money freedom and expand your legacy. Insurance fits in the protection stage.  With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face. Your protection is like a roof on your financial house.  When the shingles are sufficient and cover the whole house, it keeps storms outside your house, preventing them from getting inside and destroying your belongings.  Similarly, when you have adequate insurance protection, your income and assets you’ve built are safe from financial storms that may occur in your life. Understanding Your Auto Insurance The Primary Purpose of Auto Insurance: Liability Protection The primary purpose of auto insurance is to transfer your risk of having to pay out of pocket if you cause injury or damage to others. If you are at fault in an accident, your liability portion of your auto insurance will cover the cost of damages to the other person, up to your coverage limits. Coverage Limits for Liability Protection To understand your coverage limits, look at the number code on your liability protection.  It would be something like this: $100,000/$300,000/$100,000. The three numbers correspond to the other vehicle only.  In order, they are: Per Person: The limit paid per injured person for bodily injury for people in the other vehicle Per Accident: The limit paid for total injured people in the other car Property Damage: The limit for all property you’ve damaged, except your own (such as vehicles, curbs, buildings, etc.) Coverage ranges from state-required minimums to legally operate a car, usually around $25,000/$50,000/$25,000, up to a maximum of about $500,000/$500,000/$500,000. Here’s how it applies. Home and auto insurance are two pillars of insurance protection that are almost universally understood to be necessary. - However, when it comes to choosing and paying for coverage, you have nearly infinite options.  The range of coverage details,
However, when it comes to choosing and paying for coverage, you have nearly infinite options.  The range of coverage details, exemptions, coverage amounts, and limitations add complexity.  This can make shopping for insurance seem like a maze without an exit.

Without the knowledge of what to look for, your home and auto insurance can become a costly money leak.  But overwhelm is no reason to pay more than you need to or settle for coverage that’s less than best.

Your goal is to pay the least for the best possible coverage.  To help you do that, we want to show you the tricks of the trade.  These insights will help you become more efficient with these coverages, keeping more of your dollars in your pocket.

With these strategies, you’ll get the best deals on your home and auto insurance and win at insurance shopping.



 

In the last article, we gave you the
seven tips to save on insurance in general.  Today, we’ll apply that specifically to your home and auto insurance to answer:

* How do I make the best decisions on my home and auto insurance?
* How do I shrink my home and auto insurance cost while maximizing my protection?
* What do I include in my home and auto insurance coverage to get the best for the lowest price?

We’ll first walk you through understanding your coverages.  Then we’ll give you the exact tips to get the best value home and auto insurance for the least premium.  You'll feel protected and secure, without mourning the cost.

Once we’ve done that, we’ll walk you through the added layer of business insurances.  We'll show you how to maximize your coverage and minimize your costs as you protect one of your most valuable assets.

You’ll gain confidence and peace of mind without giving up any more of your dollars in monthly expenses than necessary.
Where Insurance Fits into Your Whole Personal Economy
Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System.

Your foundation starts with keeping more of the money you make.  Second, you protect what you’ve built.  Finally, you increase your income to create time and money freedom and expand your legacy.

Insurance fits in the protection stage.  With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face.

Your protection is like a roof on your financial house.  When the shingles are sufficient and cover the whole house, it keeps storms outside your house, preventing them from getting inside and destroying your belongings.  Similarly, when you have adequate insurance protection, your income and assets you’ve built are safe from financial storms that may occur in your life.
Understanding Your Auto Insurance
The Primary Purpose of Auto Insurance: Liability Protection
The primary purpose of auto insurance is to transfer your risk of having to pay out of pocket if you cause injury or damage to others.

If you are at fault in an accident, your liability portion of your auto insurance will cover the cost of damages to the other person, up to your coverage limits.
Coverage Limits for Liability Protection
To understand your coverage limits, look at the number code on your liability protection.  It would be something like this: $100,000/$300,]]> Bruce Wehner & Rachel Marshall clean 30:24 How to Shop for Insurance Part 1: 7 Tips to Save on Insurance – TMA 029 https://themoneyadvantage.com/how-to-shop-for-insurance-part-1-7-tips-to-save-on-insurance/ Mon, 28 May 2018 09:00:51 +0000 https://themoneyadvantage.com/?p=2132 When you shop for insurance, it’s best to start with a game plan.  Then you know what to look for and how to save on insurance without sacrificing value.  It’s just like shopping for groceries, a marketing strategist, or an investment property. First, you need to know what you want.  Next, you want to know how to get the best deal. Finally, you need to know where to find it. If you’ve been following along in this series on protection, you know why you want insurance. You’re here because you want an insurance strategy that transfers as much risk as possible to protect your human life value. You want as much of the best, most enduring, highest quality coverage you can get.     Now it’s time to find the best deals. Over the next three articles, we’re going to walk you through how to save on insurance. We’ll answer: How do I maximize the value I get for the least premium? What protections should I have? What are some pitfalls to avoid, so my protection doesn’t become a money leak? Today, we’ll show you seven tips to get the most and best value coverage for the least premium so that you can feel protected and secure.  You’ll gain confidence and peace of mind without giving up any more of your dollars in monthly expenses than absolutely necessary. Previously If you're not sure why you would want insurance in the first place, here’s the first three articles in the series to help you do exactly that: Why You Want Insurance Part 1 examined what insurance does. It transfers risk. Why You Want Insurance Part 2 discussed why it matters. It protects your greatest asset. Why You Want Insurance Part 3 covered the cost and answered why you should pay for insurance. It costs more to self-insure. Where Insurance Fits into Your Whole Personal Economy Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System. Your foundation starts with keeping more of the money you make.  Second, you protect what you’ve built.  Finally, you increase your income to build time and money freedom and expand your legacy. Insurance fits in the protection stage.  With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face. Your protection is like a roof on your financial house.  When the shingles are sufficient and cover the whole house, it keeps storms outside your house, preventing them from getting inside and destroying your belongings.  Similarly, when you have adequate insurance protection, your income and assets you’ve built are safe from financial storms that may occur in your life. Banish Buyer’s Remorse If you’ve recognized a disparity between the coverage you have and the coverage you want, it’s time to go shopping.  Whether you are purchasing insurance for the first time, adding new lines of coverage, or shoring up an existing strategy, the decision can be quite overwhelming. At the store, when you go shopping without a plan, a well-meaning salesperson asks you what you’re looking for and how they can help.  Instead of sounding nice, they seem like they just want your money. You either dodge them and continue browsing or find yourself talked into leaving with more than you wished, spending twice as much as you’d wanted. Maybe you’ve been confronted by the irresistible well-placed items near the checkout line.  Before you know it, you’re lamenting buying those ten extra items that you never had in mind when you stepped into the store. That’s called buyer’s remorse. We don’t want that to be you when it comes to insurance. Confident Insurance Shopping Is the Goal When you have the insider’s knowledge on finding the best deals, you have a new confidence that puts you in control.  It’s like being an exclusive member and getting access to the VIP sales before everyone else finds out. So, here’s a guide to confident insurance shopping.  You’ll get tips to save on insurance. When you shop for insurance, it’s best to start with a game plan.  Then you know what to look for and how to save on insurance without sacrificing value.  It’s just like shopping for groceries, a marketing strategist, or an investment property. - 
It’s just like shopping for groceries, a marketing strategist, or an investment property.

First, you need to know what you want.  Next, you want to know how to get the best deal. Finally, you need to know where to find it.

If you’ve been following along in this series on protection, you know why you want insurance.

You’re here because you want an insurance strategy that transfers as much risk as possible to protect your human life value. You want as much of the best, most enduring, highest quality coverage you can get.

 



 

Now it’s time to find the best deals.

Over the next three articles, we’re going to walk you through how to save on insurance.

We’ll answer:

* How do I maximize the value I get for the least premium?
* What protections should I have?
* What are some pitfalls to avoid, so my protection doesn’t become a money leak?

Today, we’ll show you seven tips to get the most and best value coverage for the least premium so that you can feel protected and secure.  You’ll gain confidence and peace of mind without giving up any more of your dollars in monthly expenses than absolutely necessary.
Previously
If you're not sure why you would want insurance in the first place, here’s the first three articles in the series to help you do exactly that:

* Why You Want Insurance Part 1 examined what insurance does. It transfers risk.
* Why You Want Insurance Part 2 discussed why it matters. It protects your greatest asset.
* Why You Want Insurance Part 3 covered the cost and answered why you should pay for insurance. It costs more to self-insure.

Where Insurance Fits into Your Whole Personal Economy
Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System.

Your foundation starts with keeping more of the money you make.  Second, you protect what you’ve built.  Finally, you increase your income to build time and money freedom and expand your legacy.

Insurance fits in the protection stage.  With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face.

Your protection is like a roof on your financial house.  When the shingles are sufficient and cover the whole house, it keeps storms outside your house, preventing them from getting inside and destroying your belongings.  Similarly, when you have adequate insurance protection, your income and assets you’ve built are safe from financial storms that may occur in your life.
Banish Buyer’s Remorse
If you’ve recognized a disparity between the coverage you have and the coverage you want, it’s time to go shopping.  Whether you are purchasing insurance for the first time, adding new lines of coverage, or shoring up an existing strategy, the decision can be quite overwhelming.

At the store, when you go shopping without a plan, a well-meaning salesperson asks you what you’re looking for and how they can help.  Instead of sounding nice, they seem like they just want your money. You either dodge them and continue browsing or find yourself talked into leaving with more than you wished,]]>
Bruce Wehner & Rachel Marshall clean 38:37
The Go-Giver: The Unexpected Secret of Success, with Bob Burg – TMA 028 https://themoneyadvantage.com/the-go-giver-secret-of-success-bob-burg/ Mon, 21 May 2018 09:00:35 +0000 https://themoneyadvantage.com/?p=2110 The Go-Giver is an engaging parable about the unexpected system of getting predictable, proven results in building a prosperous business.  This story reveals the five laws of stratospheric success, giving you the recipe to make more money in your entrepreneurial endeavors by adding value and increasing your impact. If you have been reading The Money Advantage blog for awhile, you may already know that The Go-Giver book played a central role in How The Money Advantage Began.     Why It Matters In business, you may feel stuck in your current level of achievement.  You may be excelling but want to expand and scale your business outside your current capabilities. Or, you may find yourself in the struggle for survival, wanting a steady stream of incoming clients in the future to remain profitable. Perhaps you’re working to meet a quota in sales to qualify for a trip or the next rank in status, or to reach your own goal and internal metric of success. Many business owners reach a plateau of success, where, try as they might, they need a new skillset and mindset to reach the next level of achievement. While you want the fruit of success, the hustle, drive, ambition, and force will only take you so far before you burn out and call it quits. Wherever you find yourself, The Go-Giver shows you the mindset to move from struggling to thriving, or from successful to ultra-successful, without doubling your efforts to get there. Bob Burg and John David Mann lay out actionable laws of success in this delightfully-written story that will move you from hustling to attracting business instead. We brought Bob Burg in for an interview to answer: What is the Go-Giver all about? How do I live the Go-Giver principles to build my business? How can the struggling become successful, or the successful become ultra-successful? Meet Bob Burg, Co-Author and "How-To Guy" of The Go-Giver Bob Burg is a sought-after speaker at company leadership and sales conferences sharing the platform with everyone from today’s business leaders and broadcast personalities to even a former U.S. President. Bob is the author of several books on sales, marketing, and influence, with total book sales of well over a million copies. His book, The Go-Giver, coauthored with John David Mann, itself has sold over 700,000 copies, and it has been translated into 21 languages. His and John’s newest parable in the Go-Giver Series is The Go-Giver Influencer. Bob is an advocate, supporter, and defender of the Free Enterprise system, believing that the amount of money one makes is directly proportional to how many people they serve. He is also an unapologetic animal fanatic and is a past member of the Board of Directors of Furry Friends Adoption, Clinic & Ranch in his town of Jupiter, Florida. The Main Idea Astounding success comes through giving, serving others, and providing value, not through sheer ambition, techniques, clout, and leverage.  Ambitious Joe goes on a mission to close a significant contract at his office. He seeks the leverage of the most influential person he’s heard of and finds a network of extraordinary mentors instead. Over the course of one week, he learns the five counterintuitive laws of stratospheric success, experiences a personal transformation, and becomes genuinely successful.   The Five Laws of Stratospheric Success Law #1: The Law of Value Your true worth is determined by how much more you give in value than you take in payment. In a free-market economy where no one is forced to buy from you, the only way you can prosper is by bringing immense value to others. People who succeed are those who can move from an “I” focus to an “other” focus, focusing on what other’s want.  For them, it has to be more valuable than the price they pay.  You focus on others by looking for ways to bring them value and make their lives better, easier, or more fulfilling. The Go-Giver is an engaging parable about the unexpected system of getting predictable, proven results in building a prosperous business.  This story reveals the five laws of stratospheric success, giving you the recipe to make more money in your en... 
This story reveals the five laws of stratospheric success, giving you the recipe to make more money in your entrepreneurial endeavors by adding value and increasing your impact.

If you have been reading The Money Advantage blog for awhile, you may already know that The Go-Giver book played a central role in How The Money Advantage Began.

 

 


Why It Matters
In business, you may feel stuck in your current level of achievement.  You may be excelling but want to expand and scale your business outside your current capabilities.

Or, you may find yourself in the struggle for survival, wanting a steady stream of incoming clients in the future to remain profitable.

Perhaps you’re working to meet a quota in sales to qualify for a trip or the next rank in status, or to reach your own goal and internal metric of success.

Many business owners reach a plateau of success, where, try as they might, they need a new skillset and mindset to reach the next level of achievement.

While you want the fruit of success, the hustle, drive, ambition, and force will only take you so far before you burn out and call it quits.

Wherever you find yourself, The Go-Giver shows you the mindset to move from struggling to thriving, or from successful to ultra-successful, without doubling your efforts to get there.

Bob Burg and John David Mann lay out actionable laws of success in this delightfully-written story that will move you from hustling to attracting business instead.

We brought Bob Burg in for an interview to answer:

* What is the Go-Giver all about?
* How do I live the Go-Giver principles to build my business?
* How can the struggling become successful, or the successful become ultra-successful?

Meet Bob Burg, Co-Author and "How-To Guy" of The Go-Giver
Bob Burg is a sought-after speaker at company leadership and sales conferences sharing the platform with everyone from today’s business leaders and broadcast personalities to even a former U.S. President.

Bob is the author of several books on sales, marketing, and influence, with total book sales of well over a million copies. His book, The Go-Giver, coauthored with John David Mann, itself has sold over 700,000 copies, and it has been translated into 21 languages.

His and John’s newest parable in the Go-Giver Series is The Go-Giver Influencer.

Bob is an advocate, supporter, and defender of the Free Enterprise system, believing that the amount of money one makes is directly proportional to how many people they serve. He is also an unapologetic animal fanatic and is a past member of the Board of Directors of Furry Friends Adoption, Clinic & Ranch in his town of Jupiter, Florida.
The Main Idea
Astounding success comes through giving, serving others, and providing value, not through sheer ambition, techniques, clout, and leverage.

Ambitious Joe goes on a mission to close a significant contract at his office.

He seeks the leverage of the most influential person he’s heard of and finds a network of extraordinary mentors instead.

Over the course of one week, he learns the five counterintuitive laws of stratospheric success, experiences a personal transformation, and becomes genuinely successful.

 
The Five Laws of Stratospheric Success
]]>
Bruce Wehner & Rachel Marshall clean 43:50
Why You Want Insurance Part 3: It Costs More to Self-Insure – TMA 027 https://themoneyadvantage.com/why-you-want-insurance-part-3-it-costs-more-to-self-insure/ Mon, 14 May 2018 09:00:04 +0000 https://themoneyadvantage.com/?p=2082 To navigate your insurance decisions, you must weigh the costs and opportunity costs of each option.  While some choose to self-insure as a solution to reduce costs, there are additional costs hidden beneath the surface that you need to be aware of.  Insurance is fairly polarizing.  Chances are, you either love it or you hate it.  And for most, it all boils down to cost. If you’re in the maximum-insurance-for-all-time camp, you want as much protection as you can get.  You see no expiration on your desire to be insured, and you have no problem paying for it. However, if you lean towards just-the-minimums-ma’am, you begrudgingly pay for just what’s legally required.  You would rather do anything else with your money.   Everyone Wants Insurance Let’s address one misconception so we can start off on the same page.  The truth is that everyone wants insurance and as much of it as they can get. Why? If it were free, how much would you get? You and just about everyone else would want it all. I think the lines would be even longer than the ones camped outside a new Chick-fil-A grand opening that give the first 100 a year of free chicken sandwich meals. Now, we all know that we can’t get something for nothing.  No insurance company would agree to that arrangement, because it’s unsustainable. They’d always lose money, go out of business, and that would put you right back in the same position of having no insurance. Because there’s a cost to transfer risk, you now have to decide if it’s worth it to you. Perception of Cost vs. Reality On the surface, it appears there’s a positive correlation between the amount coverage and the cost.  When the amount of insurance goes up, so does the price tag. Logically then, the way to achieve the lowest cost would be to have the least insurance. Given that perspective, most people run the cost-benefit analysis throughout their life to calibrate how much coverage to have at any given point in time.  They carefully measure needs and weigh the benefits and costs like two kids on an old-fashioned see-saw, looking for equilibrium.  Do the benefits outweigh the costs or is it the other way around? But that’s not the whole story.  Most don’t see the big picture because of the opportunity costs that lurk just out of view. Let’s dive into the heart of the matter so that we can gain some clarity in our decision-making. The Panoramic View As with all parts of your financial life, the whole system is more important than the individual components.  To make sure each piece fits the larger purpose of your life, let’s come back to the big picture of an optimized personal economy that’s in your control. You’re earning, spending, giving, saving, and investing from a perspective of abundance.  You know that you have everything you need and that you create wealth by serving others. Because you protect what you have built, you have future guarantees that your assets and cash flow will be there for you. You find and fix the places where money is leaking out of your control so that you keep more of the money you make. And, you’re accelerating wealth by earning cash flow from your assets. Previously in This Series This series outlines the 11 reasons why you want to protect your money.  If you haven’t seen the first seven reasons, check out the prior posts: In Why You Want Insurance Part 1: Insurance Transfers Risk, we discussed what insurance does.  The job of insurance to contractually intercept the financial risk of adverse life events. In Why You Want Insurance Part 2: It Protects Your Human Life Value, we pulled back the why of insurance and how it’s meaningful to you.  Insurance protects your greatest asset: you – the source of your assets, income, and cash flow. The Questions We’re Answering Today Today, we’re tackling the costs and opportunity costs to determine how expensive insuring or not insuring is.  We’ll dig into the last four reasons why you w... To navigate your insurance decisions, you must weigh the costs and opportunity costs of each option.  While some choose to self-insure as a solution to reduce costs, there are additional costs hidden beneath the surface that you need to be aware of. opportunity costs of each option.  While some choose to self-insure as a solution to reduce costs, there are additional costs hidden beneath the surface that you need to be aware of.

Insurance is fairly polarizing.  Chances are, you either love it or you hate it.  And for most, it all boils down to cost.

If you’re in the maximum-insurance-for-all-time camp, you want as much protection as you can get.  You see no expiration on your desire to be insured, and you have no problem paying for it.

However, if you lean towards just-the-minimums-ma’am, you begrudgingly pay for just what’s legally required.  You would rather do anything else with your money.

 


Everyone Wants Insurance
Let’s address one misconception so we can start off on the same page.  The truth is that everyone wants insurance and as much of it as they can get.

Why?

If it were free, how much would you get?

You and just about everyone else would want it all. I think the lines would be even longer than the ones camped outside a new Chick-fil-A grand opening that give the first 100 a year of free chicken sandwich meals.

Now, we all know that we can’t get something for nothing.  No insurance company would agree to that arrangement, because it’s unsustainable. They’d always lose money, go out of business, and that would put you right back in the same position of having no insurance.

Because there’s a cost to transfer risk, you now have to decide if it’s worth it to you.
Perception of Cost vs. Reality
On the surface, it appears there’s a positive correlation between the amount coverage and the cost.  When the amount of insurance goes up, so does the price tag. Logically then, the way to achieve the lowest cost would be to have the least insurance.

Given that perspective, most people run the cost-benefit analysis throughout their life to calibrate how much coverage to have at any given point in time.  They carefully measure needs and weigh the benefits and costs like two kids on an old-fashioned see-saw, looking for equilibrium.  Do the benefits outweigh the costs or is it the other way around?

But that’s not the whole story.  Most don’t see the big picture because of the opportunity costs that lurk just out of view.

Let’s dive into the heart of the matter so that we can gain some clarity in our decision-making.
The Panoramic View
As with all parts of your financial life, the whole system is more important than the individual components.  To make sure each piece fits the larger purpose of your life, let’s come back to the big picture of an optimized personal economy that’s in your control.

You’re earning, spending, giving, saving, and investing from a perspective of abundance.  You know that you have everything you need and that you create wealth by serving others.

Because you protect what you have built, you have future guarantees that your assets and cash flow will be there for you.

You find and fix the places where money is leaking out of your control so that you keep more of the money you make.

And, you’re accelerating wealth by earning cash flow from your assets.
Previously in This Series
This series outlines the 11 reasons why you want to protect your money.]]>
Bruce Wehner & Rachel Marshall clean 38:01
Content Marketing That Attracts and Converts Happy Clients, with Maggie Patterson – TMA 026 https://themoneyadvantage.com/content-marketing-that-converts-maggie-patterson/ Mon, 07 May 2018 09:00:48 +0000 https://themoneyadvantage.com/?p=2065 Content marketing is a powerful tool to reach your future customers before they choose to do business with you.  If you’ve been in business for 20 years or 15 minutes, you’ve realized that one of the primary levers of success is having customers. With people to see, you can find out what works best, make money, fine-tune, and scale. But without them, you’re dying a slow and painful death that eventually takes you out of business. So how do you attract and convert happy clients quickly, simply, and sustainably?  For many businesses, it starts with building a relationship with potential clients before they buy from you through content marketing.   Why Content Marketing? We want to help you build a life and business you love.  One way we do that is to give you tools and resources to help you scale into a self-sustaining business.  Sometimes, those resources are outside our area of expertise. Wherever you are now on the spectrum from a solo operation where all business depends on you, to having a team working from their unique abilities to support you, you have the opportunity to grow. You may be in real estate, the medical profession, a law practice, construction or consulting.  Regardless, you can provide education-based content to attract, nurture, and convert strangers into satisfied, happy clients. Through content, you can meet your potential clients where they are.  When you answer their questions, you establish yourself as the solution for when they’re ready to make a purchase decision. It gives them the ability to get to know you, find out if they like you, and decide whether to work with you. Clearing the Content Marketing Hurdles If you’re providing educational content at any level to potential clients, you may be familiar with funnels, traffic, conversion, and ads.  You may be using or desire to provide education through your website, emails, your LinkedIn profile, articles, blogs, video, podcasting, books, or landing pages. All of this communication requires words that you write or speak, and that your potential customers receive. Your goal is to use those words create a congruent story.  In doing so, you want to convert someone who doesn’t know you at all into a paying client. Once you decide to create content, it’s easy to become overwhelmed. Messaging takes time to create.  It needs to be congruent.  It must answer the questions that are top of mind to your potential clients.  And it requires technology to support the moving parts. To help you decide how to approach content marketing in a way that’s right for you and design a strategy to get everything working together, we brought in Maggie Patterson, of SCOOP Industries, to answer your questions like: Should I use content marketing in my business? How can I strategically fine-tune my content marketing to get more results? When should I outsource my content marketing and hire a professional? Meet Maggie Patterson, Strategic Communications Extraordinaire Maggie Patterson, the VP of Content Marketing with SCOOP Industries, is a strategic communications expert and B2B content marketer who works with small to mid-sized businesses to help them meet their business goals. Her specialties are customer case studies and blogging, and she’s a Master Level Content Marketer.  She has deep experience in B2B software, and her team has experience in a variety of industries including online marketing, financial services, real estate and tourism. Over the course of her career, she’s worked with startups to the world's biggest brands, and her work has been featured on Entrepreneur.com, Virgin.com, Fast Company, The Huffington Post and numerous other publications. Maggie’s specialties include customer success stories, blogging, website copywriting, marketing content, email marketing and content strategy. As a business owner, you may want to leave your content marketing to professionals or get some guidance so ... Content marketing is a powerful tool to reach your future customers before they choose to do business with you.  If you’ve been in business for 20 years or 15 minutes, you’ve realized that one of the primary levers of success is having customers. 
If you’ve been in business for 20 years or 15 minutes, you’ve realized that one of the primary levers of success is having customers.

With people to see, you can find out what works best, make money, fine-tune, and scale.

But without them, you’re dying a slow and painful death that eventually takes you out of business.

So how do you attract and convert happy clients quickly, simply, and sustainably?  For many businesses, it starts with building a relationship with potential clients before they buy from you through content marketing.

 


Why Content Marketing?
We want to help you build a life and business you love.  One way we do that is to give you tools and resources to help you scale into a self-sustaining business.  Sometimes, those resources are outside our area of expertise.

Wherever you are now on the spectrum from a solo operation where all business depends on you, to having a team working from their unique abilities to support you, you have the opportunity to grow.

You may be in real estate, the medical profession, a law practice, construction or consulting.  Regardless, you can provide education-based content to attract, nurture, and convert strangers into satisfied, happy clients.

Through content, you can meet your potential clients where they are.  When you answer their questions, you establish yourself as the solution for when they’re ready to make a purchase decision. It gives them the ability to get to know you, find out if they like you, and decide whether to work with you.
Clearing the Content Marketing Hurdles
If you’re providing educational content at any level to potential clients, you may be familiar with funnels, traffic, conversion, and ads.  You may be using or desire to provide education through your website, emails, your LinkedIn profile, articles, blogs, video, podcasting, books, or landing pages.

All of this communication requires words that you write or speak, and that your potential customers receive.

Your goal is to use those words create a congruent story.  In doing so, you want to convert someone who doesn’t know you at all into a paying client.

Once you decide to create content, it’s easy to become overwhelmed.

Messaging takes time to create.  It needs to be congruent.  It must answer the questions that are top of mind to your potential clients.  And it requires technology to support the moving parts.

To help you decide how to approach content marketing in a way that’s right for you and design a strategy to get everything working together, we brought in Maggie Patterson, of SCOOP Industries, to answer your questions like:

* Should I use content marketing in my business?
* How can I strategically fine-tune my content marketing to get more results?
* When should I outsource my content marketing and hire a professional?

Meet Maggie Patterson, Strategic Communications Extraordinaire
Maggie Patterson, the VP of Content Marketing with SCOOP Industries, is a strategic communications expert and B2B content marketer who works with small to mid-sized businesses to help them meet their business goals.

Her specialties are customer case studies and blogging, and she’s a Master Level Content Marketer.  She has deep experience in B2B software, and her team has experience in a variety of industries including online marketing, financial services, real estate and tourism.

Over the course of her career, she’s worked with startups to the world's biggest brands, and her work has been featured on Entrepreneur....]]>
Bruce Wehner & Rachel Marshall clean 44:54
Why You Want Insurance Part 2: It Protects Your Human Life Value – TMA 025 https://themoneyadvantage.com/why-you-want-insurance-part-2-human-life-value/ Mon, 30 Apr 2018 09:00:54 +0000 https://themoneyadvantage.com/?p=2011 Insurance is about more than protecting your stuff. It’s about protecting your human life value.    Often, you need insurance ranks pretty close on the motivation list with you need to change the oil in your car. Here’s the filtering mechanism your brain goes through when you hear it:  Not that pressing.  Things are going fine without it.  Why be inconvenienced to handle this non-urgent matter?  Not that relevant.  Out of sight, out of mind.  Dismiss. Right? But what if I told you that the reason to change your oil in your car was not about your car at all?  Changing your oil protects you, your peace of mind, and your ability to create value.     Without changing your oil, you run the risk of thousands of dollars of irreparable damage that can be done when a car runs out of oil.  Your nightmare of needing to replace a car fast is now upon you.  While buying a new car should be fun and exciting, you now have to spend hours searching for the right vehicle just to bring your life back into equilibrium and normalcy.  Basic transportation in your everyday life that was easy before now becomes a complicated algorithm of managing other people’s availabilities to find out how they can help you get from point A to point B. This seemingly menial task of preventative maintenance is now all-important.  It’s not really about the car, but about protecting your peace of mind, and saving yourself the worry and frustration. Similarly, insurance is about more than just protecting your stuff.  It’s about protecting you. An Optimized Personal Economy Let’s take a moment to zoom out and look at the big picture of your financial life. In a well-functioning personal economy, you start from a mindset of abundance. Next, you protect what you earn through insurance and legal planning to solidify the foundation. Then you optimize your efficiency and minimize the leaks and losses that have money flowing out of your control. As you increase your net investible income in your opportunity fund, you accelerate your wealth through investing for cash flow. The foundation of protection allows you to build greater wealth, more sustainably, and quicker. Last Time In Why You Want Insurance Part 1 – Insurance Transfers Risk, we covered the first three of 11 reasons why you want insurance and discussed what insurance does. Insurance contractually transfers risk to the insurance company, so that you don’t have to bear the financial burden of adverse life events.  When you transfer risk, you gain the peace of mind to know that, no matter what happens, you have a safety net that will catch you. We discussed the agreement that you enter with the insurance company.  In exchange for a premium, they will compensate, or indemnify, your loss, making you whole.  The premium is based on actuarial data that calculates the probability of your risk. The least risky time, when you’re comfortable, and there are no risks on the immediate horizon, is the best time to get insurance.  The insurance company is more likely to insure you, at a lower cost. When you don’t feel like you need insurance is the best time to secure it because when you do need it, you’ll wish you had as much as you could get. Today Next, we’re talking about why it matters.  As we explore the next four reasons why you want to protect your money, we’ll answer: What is my human life value? How is protecting myself as a producer and creator the #1 priority of all insurance? Why is protection so important in my personal economy? Reasons You Want Insurance #4) You Are Worth Protecting Have you ever asked yourself, what is the most important thing that I have? Money?  It could vanish tomorrow.  Health? Time?  Relationships?  Happiness? Purpose?  You’re getting closer. Your most valuable asset is you. You are the source of everything you create. You are the producer of all of your other assets: your home, bank accounts, Insurance is about more than protecting your stuff. It’s about protecting your human life value.    - Often, you need insurance ranks pretty close on the motivation list with you need to change the oil in your car. - 
 

Often, you need insurance ranks pretty close on the motivation list with you need to change the oil in your car.

Here’s the filtering mechanism your brain goes through when you hear it:  Not that pressing.  Things are going fine without it.  Why be inconvenienced to handle this non-urgent matter?  Not that relevant.  Out of sight, out of mind.  Dismiss.

Right?

But what if I told you that the reason to change your oil in your car was not about your car at all?  Changing your oil protects you, your peace of mind, and your ability to create value.

 



 

Without changing your oil, you run the risk of thousands of dollars of irreparable damage that can be done when a car runs out of oil.  Your nightmare of needing to replace a car fast is now upon you.  While buying a new car should be fun and exciting, you now have to spend hours searching for the right vehicle just to bring your life back into equilibrium and normalcy.  Basic transportation in your everyday life that was easy before now becomes a complicated algorithm of managing other people’s availabilities to find out how they can help you get from point A to point B.

This seemingly menial task of preventative maintenance is now all-important.  It’s not really about the car, but about protecting your peace of mind, and saving yourself the worry and frustration.

Similarly, insurance is about more than just protecting your stuff.  It’s about protecting you.
An Optimized Personal Economy
Let’s take a moment to zoom out and look at the big picture of your financial life.

In a well-functioning personal economy, you start from a mindset of
abundance.

Next, you protect what you earn through insurance and legal planning to solidify the foundation.

Then you optimize your efficiency and minimize the leaks and losses that have money flowing out of your control.

As you increase your net investible income in your opportunity fund, you accelerate your wealth through investing for cash flow.

The foundation of protection allows you to build greater wealth, more sustainably, and quicker.
Last Time
In Why You Want Insurance Part 1 – Insurance Transfers Risk, we covered the first three of 11 reasons why you want insurance and discussed what insurance does.

Insurance contractually transfers risk to the insurance company, so that you don’t have to bear the financial burden of adverse life events.  When you transfer risk, you gain the peace of mind to know that, no matter what happens, you have a safety net that will catch you.

We discussed the agreement that you enter with the insurance company.  In exchange for a premium, they will compensate, or indemnify, your loss, making you whole.  The premium is based on actuarial data that calculates the probability of your risk.

The least risky time, when you’re comfortable, and there are no risks on the immediate horizon, is the best time to get insurance.  The insurance company is more likely to insure you, at a lower cost.

When you don’t feel like you need insurance is the best time to secure it because when you do need it,]]> Bruce Wehner & Rachel Marshall clean 31:41 Estate Planning That Works, with Rick Randall – TMA 024 https://themoneyadvantage.com/estate-planning-that-works-rick-randall/ Mon, 23 Apr 2018 09:00:53 +0000 https://themoneyadvantage.com/?p=1836 While estate planning that works is not the norm, it does not have to be that way.  The goal of estate planning is to dictate how you will transfer the baton of your life’s wealth and wisdom to generations after you.  With it, you ensure your legacy will live on, beyond you, rather than dissolving at your death. Estate planning that works gives you the ability to control, preserve and protect the wealth you’ve created when you’re no longer able to.     Love, Money, and Control says it like this: With proper planning, you can control your financial and personal affairs while you are well and competent and leave instructions for how your affairs should be managed – in essence, still maintaining control – if you become physically or mentally disabled. – Love, Money, and Control With estate planning, you set plans in motion today to take care of the things that are most important to you, like your children, your health, and your money. It is the most efficient way to transfer wealth with minimal loss and ensure your assets aren’t tied up in probate and chiseled away by taxes. The Overwhelming Majority of People Don’t Get What They Wanted Overall, estate planning is a critical part of planning for the end of your life.  It ensures what you want to happen will happen. There are countless compelling reasons to do estate planning. Yet, with all the reasons to plan, only about 30% of Americans have an estate plan in place. That's because it’s one of those things that’s easier not to do. Firstly, it’s uncomfortable and distressing to think about the end of your life. Secondly, we all know “that family” that fell apart because of an inheritance.  Wealth transfer is often fraught with turmoil and conflict, and we don’t want that to happen to us.  We’d rather ignore our dysfunction than confront it head-on.  Often the family dynamics invite a tension and disagreement about how the money will change hands, who will receive what, and how decisions will be made. If you don't put your own estate plan in place, your state will give you one by default, and it won't be what you want. Of those who do plan, many of those estate plans have very little chance of working. Your Most Important Estate Planning Questions Answered We brought Rick Randall, Founder of Randall Gentry & Pike, and Chairman and CEO of the National Network of Estate Planning Attorneys, onto the show to tell you why most estate plans don’t work, what to do instead, and to answer: Why should I do estate planning? Who is estate planning for? How do I make sure my estate plan will work? What will make my estate plan of the greatest value to me and generations after me? What is estate planning that works? An Innovative Estate Planning Leader Rick Randall is an innovative leader in the Wealth Reception Planning™ movement. He develops and teaches concepts, tools, and systems designed to help client families and professional advisors create, appreciate and enjoy true wealth (both financial and non-financial), and to assure true wealth is efficiently transferred and effectively received. Rick is the developer of The LifeSpan Planning Process™, The Three Step Strategy Planning Process™, The Three Step Strategy Practice Evolver Model™, and The Wealth Reception Planning Process™. His firm is widely known for helping clients create "plans that work" through personalized counseling, a formal updating program, and proactive settlement training. A Founding Member of the National Network of Estate Planning Attorneys, Rick served as its first Education Director, later as its Executive Director, and now serves as its Chairman and CEO. Rick actively practices law in Indianapolis, Indiana. His area of technical expertise is retirement and estate planning integration.  Rick has attained the Certified Financial Planner® (CFP), a Chartered Life Underwriter (CLU) and Chartered Financial Consultant (ChFC) designations. While estate planning that works is not the norm, it does not have to be that way.  The goal of estate planning is to dictate how you will transfer the baton of your life’s wealth and wisdom to generations after you.  With it, 
The goal of estate planning is to dictate how you will transfer the baton of your life’s wealth and wisdom to generations after you.  With it, you ensure your legacy will live on, beyond you, rather than dissolving at your death.

Estate planning that works gives you the ability to control, preserve and protect the wealth you’ve created when you’re no longer able to.

 



 

Love, Money, and Control says it like this:
With proper planning, you can control your financial and personal affairs while you are well and competent and leave instructions for how your affairs should be managed – in essence, still maintaining control – if you become physically or mentally disabled. – Love, Money, and Control
With estate planning, you set plans in motion today to take care of the things that are most important to you, like your children, your health, and your money.

It is the most efficient way to transfer wealth with minimal loss and ensure your assets aren’t tied up in probate and chiseled away by taxes.
The Overwhelming Majority of People Don’t Get What They Wanted
Overall, estate planning is a critical part of planning for the end of your life.  It ensures what you want to happen will happen.

There are countless compelling reasons to do estate planning.

Yet, with all the reasons to plan, only about 30% of Americans have an estate plan in place.

That's because it’s one of those things that’s easier not to do.

Firstly, it’s uncomfortable and distressing to think about the end of your life.

Secondly, we all know “that family” that fell apart because of an inheritance.  Wealth transfer is often fraught with turmoil and conflict, and we don’t want that to happen to us.  We’d rather ignore our dysfunction than confront it head-on.  Often the family dynamics invite a tension and disagreement about how the money will change hands, who will receive what, and how decisions will be made.

If you don't put your own estate plan in place, your state will give you one by default, and it won't be what you want.

Of those who do plan, many of those estate plans have very little chance of working.
Your Most Important Estate Planning Questions Answered
We brought Rick Randall, Founder of Randall Gentry & Pike, and Chairman and CEO of the National Network of Estate Planning Attorneys, onto the show to tell you why most estate plans don’t work, what to do instead, and to answer:

* Why should I do estate planning?
* Who is estate planning for?
* How do I make sure my estate plan will work?
* What will make my estate plan of the greatest value to me and generations after me?
* What is estate planning that works?

An Innovative Estate Planning Leader
Rick Randall is an innovative leader in the Wealth Reception Planning movement. He develops and teaches concepts, tools, and systems designed to help client families and professional advisors create, appreciate and enjoy true wealth (both financial and non-financial), and to assure true wealth is efficiently transferred and effectively received.

Rick is the developer of The LifeSpan Planning Process, The Three Step Strategy Planning Process, The Three Step Strategy Practice Evolver Model, and The Wealth Reception Planning Process. His firm is widely known for helping clients create "plans that work" through personalized counseling, a formal updating program, and proactive settlement training.

]]>
Bruce Wehner & Rachel Marshall clean 1:01:08
Why You Want Insurance Part 1: Insurance Transfers Risk – TMA 023 https://themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/ Mon, 16 Apr 2018 09:00:45 +0000 https://themoneyadvantage.com/?p=1934 Throughout civilization, people have created tools to transfer risk, protecting themselves from negative circumstances.  This is the core function of insurance: to transfer risk.  It’s what makes insurance not only something you want but something to love.  However, many people have a misguided and negative view of insurance, being inadequately insured or uninsured altogether.  As a result, they live with more worry, fear, and doubt because of the possibility of loss.  Consequently, they limit their potential. Let’s open up the dialogue and approach the topic from an abundance perspective, to learn why the wealthy value protection, and why you should too. Spoiler alert: it’s because the benefits of protection extend far beyond the coverage itself.     In this series, we’ll show you the 11 reasons why you want to protect your money, and answer: What does insurance do? Why does it matter? Why protect my money when I could just make more instead? Is the cost worth it? With limited resources, how do I prioritize paying for protection? What protections are important and why? Today, we’re exploring the topic of risk, our relationship to risk, and the ideal timeframe to transfer risk. Why Most People Hate Insurance Health insurance, auto insurance, disability insurance, life insurance, homeowner’s insurance, professional liability insurance, umbrella insurance, worker’s compensation, business overhead expense insurance, business owner’s insurance, long-term care insurance, gap insurance, key man insurance, critical illness. Feel like you need a shower yet? If you’re like most people, the thought of insurance brings up feelings of dread.  The desire to escape all the horrible things that could happen, along with their consequences has us succumbing to spending hundreds of dollars that we don’t want to spend. Insurance seems like a labyrinth of confusion, where you pay exorbitant premiums, get nothing in return, and the insurance company always wins. Many weigh the risks and decide the event is unlikely enough that they forgo the insurance altogether. Protection through insurance and legal planning is often seen as a necessary evil.  You want it, but it’s expensive and time-consuming, and there are so many other things you’d rather be doing with that money. Why We Love Insurance Let’s address the elephant in the room for a moment, shall we?  You might be thinking, of course, you love insurance because you sell it! Here at The Money Advantage, we educate people about how to keep and control more money, increase cash flow, and protect their wealth. Insurance is a vital part of that.  Yes, we sell insurance, specifically life and disability insurance, and receive compensation for the sale of those products. The reason we love insurance is that we use it and see the value in our own personal economy, as well as its role in maximizing the personal economy of the clients we work with. We were believers and consumers before we were educators and advisors.  We don’t love it and teach about it because we sell it.  Instead, we sell it because we own it, love it, and want to share it. In this article, we want to share with you how insurance protection matches our values and mission. Armed with this empowering perspective about protection, you’ll enjoy making decisions about how to protect your money, instead of feeling bullied into fear-based decision making by scare tactics. Reasons You Want Insurance Let’s dig into the reasons why you want to have insurance. #1) Protection Allows You to Transfer Risk What Types of Risk? There are infinite types of risk in the world, as we live our daily lives.  It could be as simple as tripping on the sidewalk, or as large as a fire.  There’s not only the risk of a disruptive event but the long-term emotional and financial impact of the loss as well. There’s the risk of death, disability, income loss, injury, illness, Throughout civilization, people have created tools to transfer risk, protecting themselves from negative circumstances.  This is the core function of insurance: to transfer risk.  It’s what makes insurance not only something you want but something to l... 
However, many people have a misguided and negative view of insurance, being inadequately insured or uninsured altogether.  As a result, they live with more worry, fear, and doubt because of the possibility of loss.  Consequently, they limit their potential.

Let’s open up the dialogue and approach the topic from an abundance perspective, to learn why the wealthy value protection, and why you should too.

Spoiler alert: it’s because the benefits of protection extend far beyond the coverage itself.

 



 

In this series, we’ll show you the 11 reasons why you want to protect your money, and answer:

* What does insurance do?
* Why does it matter?
* Why protect my money when I could just make more instead?
* Is the cost worth it?
* With limited resources, how do I prioritize paying for protection?
* What protections are important and why?

Today, we’re exploring the topic of risk, our relationship to risk, and the ideal timeframe to transfer risk.
Why Most People Hate Insurance
Health insurance, auto insurance, disability insurance, life insurance, homeowner’s insurance, professional liability insurance, umbrella insurance, worker’s compensation, business overhead expense insurance, business owner’s insurance, long-term care insurance, gap insurance, key man insurance, critical illness.

Feel like you need a shower yet?

If you’re like most people, the thought of insurance brings up feelings of dread.  The desire to escape all the horrible things that could happen, along with their consequences has us succumbing to spending hundreds of dollars that we don’t want to spend.

Insurance seems like a labyrinth of confusion, where you pay exorbitant premiums, get nothing in return, and the insurance company always wins.

Many weigh the risks and decide the event is unlikely enough that they forgo the insurance altogether.

Protection through insurance and legal planning is often seen as a necessary evil.  You want it, but it’s expensive and time-consuming, and there are so many other things you’d rather be doing with that money.
Why We Love Insurance
Let’s address the elephant in the room for a moment, shall we?  You might be thinking, of course, you love insurance because you sell it!

Here at The Money Advantage, we educate people about how to keep and control more money, increase cash flow, and protect their wealth.

Insurance is a vital part of that.  Yes, we sell insurance, specifically life and disability insurance, and receive compensation for the sale of those products.

The reason we love insurance is that we use it and see the value in our own personal economy, as well as its role in maximizing the personal economy of the clients we work with.

We were believers and consumers before we were educators and advisors.  We don’t love it and teach about it because we sell it.  Instead, we sell it because we own it, love it, and want to share it.

In this article, we want to share with you how insurance protection matches our values and mission.

Armed with this empowering perspective about protection, you’ll enjoy making decisions about how to protect your money, instead of feeling bullied into fear-based decision making by scare tactics.
Reasons You Want Insurance
]]>
Bruce Wehner & Rachel Marshall clean 36:56
The Family Office Model: Investing Like the Wealthy, with Richard C. Wilson – TMA 022 https://themoneyadvantage.com/family-office-invest-like-the-wealthy-richard-c-wilson/ Mon, 09 Apr 2018 00:00:03 +0000 https://themoneyadvantage.com/?p=1933 There’s a divergence between the investing strategies of the status quo and those of the ultra-successful.  The ultra-wealthy leverage a family office model so they can focus their efforts on what they do best.  Viewing wealth as a team sport allows you to stay focused and do what you love.  Most people use common financial thinking.  This has them feeling out of control, losing money, hanging on for the ride, and hoping everything works out. Instead, the ultra-wealthy have a completely different set of rules. If you follow the status quo, you’ll get status quo results. But if you want to create a life of wealth and freedom, learn from those who have created it.  And do what it takes to follow suit.   A Window into the Strategies of the Ultra-Wealthy We’re making it easy because we’re bringing the financial world of the ultra-wealthy in close to give you the opportunity to see it for yourself. In this episode, we asked Richard C. Wilson, the CEO of the Family Office Club, to share his experience in coordinating the wealth teams of multimillionaire and billionaire families. Like studying something under a microscope, here’s your window into elite investing.  You'll have the opportunity to touch, feel, and explore it for yourself. To achieve the extraordinary time and money freedom you desire, learn the way the wealthy think about investing.  Study their principles, their reasons, their goals, and their why.  Look through their lens and find out how they see the world differently. Instead of honing your investing through blood, tears, and poor decisions, learn how to invest like the wealthy. When you see what they are doing, you can model their decision-making.  This allows you to accelerate your wealth creation beyond the limits of what you thought was possible. We’ll answer: How do the ultra-wealthy invest differently than anyone else? How do they focus on what they know and can control? Why the ultra-wealthy value liquidity? How do the ultra-wealthy view diversification What is the importance of a family mission, values, goals, objectives, and governance in their investing strategy? From this conversation, you’ll gain insight on how to invest like the wealthy in your own life. The Big Picture If you’re following along in this series on saving and investing, you’ve realized the power of saving first.  You crave the peace of mind, stability, and confidence it brings you, and how it helps you create more. With a savings system in place, you’ve explored ways to store it most effectively to maximize your safety, liquidity, and growth. You are developing your investor identity to target your investing strategy.  Because of this, you're shrinking your risk and boosting your returns by investing in what you know and control. Now, we’ll zoom in on the investing strategy of the wealthy.  You'll see how they’re investing to achieve exceptional results. Wealth Team Coordinator for Multimillionaire and Billionaire Families Richard C. Wilson helps $100M+ net worth families create and manage their single family offices and currently manages 14 clients including mandates with three billionaire families and as the CEO of a $500M+ single family office and Head of Direct Investments for another with $200M+ in assets. Richard is also the founder of the Family Office Club, the #1 largest community in the industry with well over 1,500 registered single and multi-family offices which manage more than $1 Trillion in Assets Under Management.  At his 10 exclusive events per year, you hear from billionaire family members, top 50 multi-family offices, and secretive single family offices. He has spoken at over 150 conferences in 17 countries, has the #1 bestselling book in the family office industry, The Single Family Office: Creating, Operating, and Managing the Investments of a Single Family Office and a recently released book called How to Start a Family Office: Blueprint... There’s a divergence between the investing strategies of the status quo and those of the ultra-successful.  The ultra-wealthy leverage a family office model so they can focus their efforts on what they do best. 
Most people use common financial thinking.  This has them feeling out of control, losing money, hanging on for the ride, and hoping everything works out.

Instead, the ultra-wealthy have a completely different set of rules.

If you follow the status quo, you’ll get status quo results.

But if you want to create a life of wealth and freedom, learn from those who have created it.  And do what it takes to follow suit.

 


A Window into the Strategies of the Ultra-Wealthy
We’re making it easy because we’re bringing the financial world of the ultra-wealthy in close to give you the opportunity to see it for yourself.

In this episode, we asked Richard C. Wilson, the CEO of the Family Office Club, to share his experience in coordinating the wealth teams of multimillionaire and billionaire families.

Like studying something under a microscope, here’s your window into elite investing.  You'll have the opportunity to touch, feel, and explore it for yourself.

To achieve the extraordinary time and money freedom you desire, learn the way the wealthy think about investing.  Study their principles, their reasons, their goals, and their why.  Look through their lens and find out how they see the world differently.

Instead of honing your investing through blood, tears, and poor decisions, learn how to invest like the wealthy.

When you see what they are doing, you can model their decision-making.  This allows you to accelerate your wealth creation beyond the limits of what you thought was possible.

We’ll answer:

* How do the ultra-wealthy invest differently than anyone else?
* How do they focus on what they know and can control?
* Why the ultra-wealthy value liquidity?
* How do the ultra-wealthy view diversification
* What is the importance of a family mission, values, goals, objectives, and governance in their investing strategy?

From this conversation, you’ll gain insight on how to invest like the wealthy in your own life.
The Big Picture
If you’re following along in this series on saving and investing, you’ve realized the power of saving first.  You crave the peace of mind, stability, and confidence it brings you, and how it helps you create more.

With a savings system in place, you’ve explored ways to store it most effectively to maximize your safety, liquidity, and growth.

You are developing your investor identity to target your investing strategy.  Because of this, you're shrinking your risk and boosting your returns by investing in what you know and control.

Now, we’ll zoom in on the investing strategy of the wealthy.  You'll see how they’re investing to achieve exceptional results.
Wealth Team Coordinator for Multimillionaire and Billionaire Families
Richard C. Wilson helps $100M+ net worth families create and manage their single family offices and currently manages 14 clients including mandates with three billionaire families and as the CEO of a $500M+ single family office and Head of Direct Investments for another with $200M+ in assets.

Richard is also the founder of the Family Office Club, the #1 largest community in the industry with well over 1,500 registered single and multi-family offices which manage more than $1 Trillion in Assets Under Management.  At his 10 exclusive events per year, you hear from billionaire family members, top 50 multi-family offices, and secretive single family offices.]]>
Bruce Wehner & Rachel Marshall clean 50:15
Saving vs. Investing: What Is Investing? Part 2 – How to Find Your Best Investments – TMA 021 https://themoneyadvantage.com/saving-vs-investing-what-is-investing-part2-best-investments/ Mon, 02 Apr 2018 09:00:10 +0000 https://themoneyadvantage.com/?p=1808 In a sea of investment choices, it can be overwhelming to determine which are the best investments for you. But don’t let overwhelm keep you in the dark, procrastinating, making mediocre decisions, losing money, and perpetually frustrated. The first step to confident investing is having a clear picture of exactly what you want and WHY.  Knowing what you want allows you to set goals that will advance you towards your destination and measure your progress.  Secondly, prepare.  Next, you need to be armed with the tools to identify opportunities that match.  Finally, you implement, measure progress, and repeat. Define success Prepare Identify opportunities that match Implement Measure progress Rinse and repeat   In the last article, Saving vs. Investing: What is Investing? Part 1 – Cash Flow, we’ve illustrated the power of cash flow investing in creating financial freedom. Before that, we discussed the preparation of habitual saving that allows you to build usable capital. Today, we’ll help you select your opportunities by answering: How do I determine the best investments for me? How do I minimize risk in my investments? We’ll help you determine the best investments for you by showing you that the answer lies in the most unexpected place. And then we’ll give you the #1 secret to lowering your investment risk. How Do I Determine the Best Investments for Me? Now that you have a vision for what you want your investments to do, let’s go shopping.  How do you figure out what the best investments are? Asset Categories Instead of narrowing down your choices, we first need to expand the options.  Unfortunately, what you’re typically offered is like seeing the appetizer menu only, when there’s a full range of salad, soup, entrée, dessert, and cocktail menus to choose from. While you may have been led to believe that your options are all housed in the stock market, the world of investing is much broader. There are four main asset categories to choose from: Paper Assets Commodities Real Estate Business Paper Assets Paper assets include stocks, bonds, mutual funds, options, and the forex market. Within this category are equities (stocks), fixed income assets (bonds), and cash equivalents that include money market accounts. Often, paper assets are wrapped into a basket of mutual funds with various risk levels. There are many ways to invest in the stock market, including using a broker or through an individual brokerage account.  Strategies range from buy-and-hold, to options trading with puts and calls. Commodities Commodities are real, hard assets like gold, silver, crude oil, wheat, cattle, coffee, etc.  They are the tangible, physical asset itself.  Owning commodities is different than trading the futures market for these commodities, which would be classified as a paper asset. Real Estate Real estate is a tangible, hard asset of land and buildings.  It includes investing in rental real estate for cash flow, wholesaling, or fixing up to “flip.”  Property may be residential single-family homes, multi-family, or commercial real estate. Business Business is another asset class.  You can invest by owning a business, franchise ownership, running the business, being on a board of directors, investing money, investing time, or loaning people money. Now that we’ve widened the universe of investing, let’s hone in on the selection criteria for your best investments. To do that, we need to start with the right perspective.  This can best be illustrated with a story. The Tale of Two Investors The Frustrated Investor Jordan woke up and read the news over his cup of coffee.  Stocks expected to rally over a change of ownership.  At least it was hopeful. From his phone, he checked his portfolio, hoping to see something different than yesterday’s downward spiral that had left him sleepless for most of the night. He internally debated, In a sea of investment choices, it can be overwhelming to determine which are the best investments for you. But don’t let overwhelm keep you in the dark, procrastinating, making mediocre decisions, losing money, and perpetually frustrated. -
The first step to confident investing is having a clear picture of exactly what you want and WHY.  Knowing what you want allows you to set goals that will advance you towards your destination and measure your progress.  Secondly, prepare.  Next, you need to be armed with the tools to identify opportunities that match.  Finally, you implement, measure progress, and repeat.

* Define success
* Prepare
* Identify opportunities that match
* Implement
* Measure progress
* Rinse and repeat



 

In the last article, Saving vs. Investing: What is Investing? Part 1 – Cash Flow, we’ve illustrated the power of cash flow investing in creating financial freedom.

Before that, we discussed the preparation of habitual saving that allows you to build usable capital.

Today, we’ll help you select your opportunities by answering:

* How do I determine the best investments for me?
* How do I minimize risk in my investments?

We’ll help you determine the best investments for you by showing you that the answer lies in the most unexpected place.

And then we’ll give you the #1 secret to lowering your investment risk.
How Do I Determine the Best Investments for Me?
Now that you have a vision for what you want your investments to do, let’s go shopping.  How do you figure out what the best investments are?
Asset Categories
Instead of narrowing down your choices, we first need to expand the options.  Unfortunately, what you’re typically offered is like seeing the appetizer menu only, when there’s a full range of salad, soup, entrée, dessert, and cocktail menus to choose from.

While you may have been led to believe that your options are all housed in the stock market, the world of investing is much broader.

There are four main asset categories to choose from:

* Paper Assets
* Commodities
* Real Estate
* Business

Paper Assets
Paper assets include stocks, bonds, mutual funds, options, and the forex market.

Within this category are equities (stocks), fixed income assets (bonds), and cash equivalents that include money market accounts.

Often, paper assets are wrapped into a basket of mutual funds with various risk levels.

There are many ways to invest in the stock market, including using a broker or through an individual brokerage account.  Strategies range from buy-and-hold, to options trading with puts and calls.
Commodities
Commodities are real, hard assets like gold, silver, crude oil, wheat, cattle, coffee, etc.  They are the tangible, physical asset itself.  Owning commodities is different than trading the futures market for these commodities, which would be classified as a paper asset.
Real Estate
Real estate is a tangible, hard asset of land and buildings.  It includes investing in rental real estate for cash flow, wholesaling, or fixing up to “flip.”  Property may be residential single-family homes, multi-family, or commercial real estate.
Business
Business is another asset class.  You can invest by owning a business, franchise ownership, running the business, being on a board of directors, investing money, investing time, or loaning people money.

Now that we’ve widened the universe of investing, let’s hone in on the selection criteria for your best investment...]]>
Bruce Wehner & Rachel Marshall clean 38:59
Personal Finance Solutions for REALTORS®, with Moses Seuram – TMA 020 https://themoneyadvantage.com/personal-finance-solutions-for-realtors-moses-seuram/ Mon, 26 Mar 2018 09:00:43 +0000 https://themoneyadvantage.com/?p=1893 Many successful business owners struggle when it comes to planning for the future.  They have high incomes, live an upper-middle-class lifestyle or better, build growing businesses.  However, they don’t have a plan for future income that they’re confident will lead to financial freedom. This is no truer than in the REALTOR® community.  More than 50% of REALTORS® are broke at the end of their career.  They’re making good money, but overpaying in taxes, spending too much of their money, and don’t have cash flow.  50% don’t own their own homes.  Most want to invest in real estate to build multiple sources of income, but don’t have the capital to invest. This problem has come to the attention of NAR, the National Association of REALTORS®, a 1.2-Million-member Trade Association.  NAR’s leaders have recognized the need for financial planning among its members, saying “REALTORS® are successful in their careers, but struggle when it is time to retire.” 2017 National Association of REALTORS® Financial Planning Goals This year, NAR has plans to focus on this problem.  They’ve mobilized an advisory group in 2017 to develop programs and ideas to help their members start planning as early as they can to save for a strong financial future. In keeping with The Money Advantage’s purpose to empower business owners with financial education to increase their cash flow and control of their financial resources and accelerate their journey to financial freedom, we are actively creating solutions that address this need. To discuss solutions and a way forward for REALTORS®, we interviewed Moses Seuram, REALTOR® and the 2018 NYSAR (New York State Association of REALTORS®, Inc.) President-Elect. REALTORS and other business owners can glean from this conversation and be empowered to create financial freedom. From the Vantage Point of a Working REALTOR® and Local and National Leader Moses’ unique vantage point gives him the credibility to participate in creating the solution. He’s earned his way, not only as a successful REALTOR(R) but also as an accomplished leader who’s volunteering and giving back to his community. His accomplishments include: Licensed Real Estate Associate Broker with KeystoneRealtyUSA 2018 NYSAR (New York State Association of REALTORS®, Inc.) President-Elect 2013 President of LIBOR (Long Island Board of REALTORS®) 2013 YPN (Young Professionals Network) Top 20 Under 40 Lifetime Achievement Award 2009 – 2016 REALTORS® Honor Society 2010 REALTOR® Salesperson of the Year Treasurer for The Long Island REALTORS® Federal Credit Union Director, National Association of REALTORS® Executive Director, New York State Association of REALTORS® Along with the National Association of REALTORS®, Moses has also played an integral role in lobbying for key provisions for homeowners and REALTORS® in the 2017 Tax Reform. Additionally, he is a successful real estate investor who’s taking control of his financial life and living the principles of Prosperity Economics.  He models and teaches the value of paying yourself first, saving liquid capital, creating cash flow, investing in real estate, using Infinite Banking, and building a sound personal economy. He wants more than to have control over his own financial destiny and create time and money freedom.  His vision extends beyond himself to helping other REALTORS® take control of their financial life as well. As a leader, he is passionate about helping REALTORS® not be broke at the end of their career.  He wants to help them build longevity in their business, minimize taxes, master their cash flow, and invest in real estate. Whether or not you’re in real estate, we hope his story and lessons learned will give you insight into how to take control of your financial life and build your path to financial freedom. Topics Discussed in the Podcast Moses’ background on a working farm, and then as a medical EMT, Many successful business owners struggle when it comes to planning for the future.  They have high incomes, live an upper-middle-class lifestyle or better, build growing businesses.  However, they don’t have a plan for future income that they’re confid...
This is no truer than in the REALTOR® community.  More than 50% of REALTORS® are broke at the end of their career.  They’re making good money, but overpaying in taxes, spending too much of their money, and don’t have cash flow.  50% don’t own their own homes.  Most want to invest in real estate to build multiple sources of income, but don’t have the capital to invest.

This problem has come to the attention of NAR, the National Association of REALTORS®, a 1.2-Million-member Trade Association.  NAR’s leaders have recognized the need for financial planning among its members, saying “REALTORS® are successful in their careers, but struggle when it is time to retire.”


2017 National Association of REALTORS® Financial Planning Goals
This year, NAR has plans to focus on this problem.  They’ve mobilized an advisory group in 2017 to develop programs and ideas to help their members start planning as early as they can to save for a strong financial future.

In keeping with The Money Advantage’s purpose to empower business owners with financial education to increase their cash flow and control of their financial resources and accelerate their journey to financial freedom, we are actively creating solutions that address this need.

To discuss solutions and a way forward for REALTORS®, we interviewed Moses Seuram, REALTOR® and the 2018 NYSAR (New York State Association of REALTORS®, Inc.) President-Elect.

REALTORS and other business owners can glean from this conversation and be empowered to create financial freedom.
From the Vantage Point of a Working REALTOR® and Local and National Leader
Moses’ unique vantage point gives him the credibility to participate in creating the solution.

He’s earned his way, not only as a successful REALTOR(R) but also as an accomplished leader who’s volunteering and giving back to his community.

His accomplishments include:

* Licensed Real Estate Associate Broker with KeystoneRealtyUSA
* 2018 NYSAR (New York State Association of REALTORS®, Inc.) President-Elect
* 2013 President of LIBOR (Long Island Board of REALTORS®)
* 2013 YPN (Young Professionals Network) Top 20 Under 40 Lifetime Achievement Award
* 2009 – 2016 REALTORS® Honor Society
* 2010 REALTOR® Salesperson of the Year
* Treasurer for The Long Island REALTORS® Federal Credit Union
* Director, National Association of REALTORS®
* Executive Director, New York State Association of REALTORS®

Along with the National Association of REALTORS®, Moses has also played an integral role in lobbying for key provisions for homeowners and REALTORS® in the 2017 Tax Reform.

Additionally, he is a successful real estate investor who’s taking control of his financial life and living the principles of Prosperity Economics.  He models and teaches the value of paying yourself first, saving liquid capital, creating cash flow, investing in real estate,]]>
Bruce Wehner & Rachel Marshall clean 56:59
Saving vs. Investing: What Is Investing? Part 1 – Cash Flow – TMA 019 https://themoneyadvantage.com/saving-vs-investing-what-is-investing-part1-cash-flow/ Mon, 19 Mar 2018 09:00:39 +0000 https://themoneyadvantage.com/?p=1743 Most investing returns fizzle far beneath our expectations.  When we most want our money to make money, we end up flatlining, or even losing money. The prosperity and confidence we'd hoped for elude us, leaving us more anxious and uncertain instead.  Could it be that we have our sights on the wrong target?  Let's take a look at investing from a cash flow perspective to untangle the confusion and bring you investing clarity. You need to understand why this investing performance failure occurs, in order to overcome it, get your money working for you, and create the financial peace and prosperity you desire. This segment on investing tells you how.   Why Investing Is the Finale and the Catalyst of Saving This article fits into a larger series on saving and investing. We’ve explored the WHY, HOW, and WHAT of a successful savings strategy.  We gave clear guidelines on how to create the habit of paying yourself first to build an Emergency/Opportunity Fund that’s safe, liquid and growing.  We distinguished savings from investing and discussed the quality of various financial vehicles in fulfilling the role of savings. But the discussion on savings wouldn’t be complete without a framework for what to do with your savings.  Instead of leaving savings to accumulate slowly over time, we want to put those dollars to work in opportunities to accelerate financial freedom. Putting our capital to work to earn a return is precisely the role of investing. Saving and Investing, Better Together You don’t save forever without the objective of putting the dollars to work.  But you can’t put dollars to work until you’ve built them up first. And then, once you’ve invested and are earning dollars with your dollars, how do you continue your savings habit which was the foundation for your success in the first place? Saving and investing go hand-in-hand, like the chicken and the egg.  Which came first, no one knows, but each continues to support and perpetuate the other. Saving well will give you more money to invest.  And investing well will, in turn, give you more money to save. Both are equally important.  Saving and investing maximize your whole personal economy, if you get them working together. To top off this series on savings, we’ll now bring investing into the crosshairs.  This article will explore the WHAT and WHY of investing. Let’s key in on the finer points of investing to answer further: What are opportunities? What is investing? How is investing different from saving? What are the end goals of investing? How do investments change my financial life and create financial freedom? Investing is much larger than the steps of a deal, investment returns, or the best stocks today.  If you camp out in the HOW and WHAT but miss the WHY and the principles, you can end up way off track, losing money, and never reaching your potential. Our goal is to help you develop higher-level thinking about investing. If you are clear on the principles that govern investing, you’ll be able to make investment decisions that accomplish your goals better and faster. What Is Investing? Broadly, here’s the definition of an investment: a devoting, using, or giving of time, talent, emotional energy, or money for a purpose or to achieve something. The PRINCIPLE is: investing is anything that requires your time, energy, and/or money, in a way to produce more than what you put in. It’s planting a seed to reap a harvest. In relationships, this could be the investment of time and energy to achieve love, connection, and happiness. In education, perhaps you’d like to learn a new skillset like real estate investing or digital marketing.  It will require the investment of your time, energy, and money, with the hopes to increase your knowledge and competence. Financially, investing is an opportunity to put your money or capital to work for you to earn profitable returns. Most investing returns fizzle far beneath our expectations.  When we most want our money to make money, we end up flatlining, or even losing money. The prosperity and confidence we'd hoped for elude us, leaving us more anxious and uncertain instead. 
Could it be that we have our sights on the wrong target?  Let's take a look at investing from a cash flow perspective to untangle the confusion and bring you investing clarity.

You need to understand why this investing performance failure occurs, in order to overcome it, get your money working for you, and create the financial peace and prosperity you desire.

This segment on investing tells you how.

 


Why Investing Is the Finale and the Catalyst of Saving
This article fits into a larger series on saving and investing.

We’ve explored the WHY, HOW, and WHAT of a successful savings strategy.  We gave clear guidelines on how to create the habit of paying yourself first to build an Emergency/Opportunity Fund that’s safe, liquid and growing.  We distinguished savings from investing and discussed the quality of various financial vehicles in fulfilling the role of savings.

But the discussion on savings wouldn’t be complete without a framework for what to do with your savings.  Instead of leaving savings to accumulate slowly over time, we want to put those dollars to work in opportunities to accelerate financial freedom.

Putting our capital to work to earn a return is precisely the role of investing.
Saving and Investing, Better Together
You don’t save forever without the objective of putting the dollars to work.  But you can’t put dollars to work until you’ve built them up first.

And then, once you’ve invested and are earning dollars with your dollars, how do you continue your savings habit which was the foundation for your success in the first place?

Saving and investing go hand-in-hand, like the chicken and the egg.  Which came first, no one knows, but each continues to support and perpetuate the other.

Saving well will give you more money to invest.  And investing well will, in turn, give you more money to save.

Both are equally important.  Saving and investing maximize your whole personal economy, if you get them working together.

To top off this series on savings, we’ll now bring investing into the crosshairs.  This article will explore the WHAT and WHY of investing.

Let’s key in on the finer points of investing to answer further:

* What are opportunities?
* What is investing?
* How is investing different from saving?
* What are the end goals of investing?
* How do investments change my financial life and create financial freedom?

Investing is much larger than the steps of a deal, investment returns, or the best stocks today.  If you camp out in the HOW and WHAT but miss the WHY and the principles, you can end up way off track, losing money, and never reaching your potential.

Our goal is to help you develop higher-level thinking about investing.

If you are clear on the principles that govern investing, you’ll be able to make investment decisions that accomplish your goals better and faster.
What Is Investing?
Broadly, here’s the definition of an investment: a devoting, using, or giving of time, talent, emotional energy, or money for a purpose or to achieve something.
The PRINCIPLE is: investing is anything that requires your time, energy, and/or money, in a way to produce more than what you put in.
It’s planting a seed to reap a harvest.

In relationships, this could be the investment of time and energy to achieve lo...]]>
Bruce Wehner & Rachel Marshall clean 56:42
Transform Your Life and Business with the Power of Gratitude, with Kevin Clayson – TMA 018 https://themoneyadvantage.com/transform-your-life-power-of-gratitude-kevin-clayson/ Mon, 12 Mar 2018 09:00:32 +0000 https://themoneyadvantage.com/?p=1771 Gratitude is a key ingredient in the abundance mindset recipe required for building a life and business you love.  It’s like the yeast in a bread recipe or the coffee beans in the coffee.  In fact, I’d go so far as to say it’s the elixir of life.  It has the power to heal, elevate, bring clarity, create solutions, expand love, and increase your personal power.  It’s miraculous when it’s applied. But for many of us, gratitude is plentiful when things are going well, and non-existent when we face problems.  In the difficult moments, gratitude seems unattainable. So, we chalk it up to good intentions and cutesy idealism that doesn’t work. This conversation will help you believe again in gratitude's astonishing power and put it into action with a simple formula. We interviewed Kevin Clayson, author of FLIP the Gratitude Switch.  He has made it his life’s work to empower people with a powerful, tangible formula that puts gratitude to work.   The Chief Officer of Awesome Kevin Clayson is the President and Owner of Gratifuel, LLC and the Co-Founder and Director of Content and Marketing at Done for You Real Estate USA.  Kevin is an international professional speaker who shares his simple formula for unlimited joy and fulfillment. He has spoken to thousands of Middle School and High School students and is also a highly requested business and corporate speaker.  He has shared the stage with some of the biggest names in the personal development, speaking, coaching, business, and author world. Kevin's message is guaranteed to inspire you through stories of real-life experiences as a husband, a father, a multi-million-dollar business owner and the world's ONLY Chief Officer of Awesome! Mindset Is Everything I learned this truth about money from a mentor: Mental Capital X Relationship Capital = Financial Capital Your financial success is the result of your mindset and relationships.  Your mindset creates your financial outcomes.  An abundance mindset is the cause of financial abundance, not a result of it. Further, your mindset and relationships are the limiters on your financial success. If you want to create financial abundance, begin by making constant, incremental, daily improvements in your mindset. Gratitude Is Action The main reason why gratitude seems whimsical and fairy-tale-like is that it’s invisible and we don’t comprehend it. It’s easy to be grateful for things when life seems to be going our way.  But what then of those times when what we wish for seems to be far out of reach?  Could I suggest that we see gratitude as a disposition, a way of life that stands independent of our current situation?  In other words, I’m suggesting that instead of being thankful for things, we focus on being thankful in our circumstances, whatever they may be.  – Dieter Uchtdorf Gratitude is not an emotion or a feeling.  Emotions change like the wind, based on circumstances. It’s not gratitude journaling, which is an isolated event that's removed from the battlefront of our moment-to-moment challenges. It’s not positivity that ignores and escapes reality. Instead, it’s the most alive, commanding, invincible, foe-conquering reality of ACTION. Gratitude is not something you feel.  It is something you do.  We are wired to feel awesome when we activate gratitude inside of the frustration. - Kevin Clayson Even more potently, it’s the specific action you take in microscopic decision points throughout your day that changes your course, alters your reality, and transforms you. Frustration Is Inevitable Life is full of events that challenge and test us.  An illness, injury, disappointment, stressful conversation, or missing a goal. As humans, we’re designed to function best when we’re in a position of tension, where there’s distance between where we are, and where we want to be.  For the remainder of our time on this side of heaven, we and life itself will remain in that constant state of ten... Gratitude is a key ingredient in the abundance mindset recipe required for building a life and business you love.  It’s like the yeast in a bread recipe or the coffee beans in the coffee.  In fact, I’d go so far as to say it’s the elixir of life. abundance mindset recipe required for building a life and business you love.  It’s like the yeast in a bread recipe or the coffee beans in the coffee.  In fact, I’d go so far as to say it’s the elixir of life.  It has the power to heal, elevate, bring clarity, create solutions, expand love, and increase your personal power.  It’s miraculous when it’s applied.

But for many of us, gratitude is plentiful when things are going well, and non-existent when we face problems.  In the difficult moments, gratitude seems unattainable.

So, we chalk it up to good intentions and cutesy idealism that doesn’t work.

This conversation will help you believe again in gratitude's astonishing power and put it into action with a simple formula.

We interviewed Kevin Clayson, author of FLIP the Gratitude Switch.  He has made it his life’s work to empower people with a powerful, tangible formula that puts gratitude to work.

 


The Chief Officer of Awesome
Kevin Clayson is the President and Owner of Gratifuel, LLC and the Co-Founder and Director of Content and Marketing at Done for You Real Estate USA.  Kevin is an international professional speaker who shares his simple formula for unlimited joy and fulfillment.

He has spoken to thousands of Middle School and High School students and is also a highly requested business and corporate speaker.  He has shared the stage with some of the biggest names in the personal development, speaking, coaching, business, and author world.

Kevin's message is guaranteed to inspire you through stories of real-life experiences as a husband, a father, a multi-million-dollar business owner and the world's ONLY Chief Officer of Awesome!
Mindset Is Everything
I learned this truth about money from a mentor:
Mental Capital X Relationship Capital = Financial Capital
Your financial success is the result of your mindset and relationships.  Your mindset creates your financial outcomes.  An abundance mindset is the cause of financial abundance, not a result of it.

Further, your mindset and relationships are the limiters on your financial success.

If you want to create financial abundance, begin by making constant, incremental, daily improvements in your mindset.
Gratitude Is Action
The main reason why gratitude seems whimsical and fairy-tale-like is that it’s invisible and we don’t comprehend it.
It’s easy to be grateful for things when life seems to be going our way.  But what then of those times when what we wish for seems to be far out of reach?  Could I suggest that we see gratitude as a disposition, a way of life that stands independent of our current situation?  In other words, I’m suggesting that instead of being thankful for things, we focus on being thankful in our circumstances, whatever they may be.  – Dieter Uchtdorf

Gratitude is not an emotion or a feeling.  Emotions change like the wind, based on circumstances.

It’s not gratitude journaling, which is an isolated event that's removed from the battlefront of our moment-to-moment challenges.

It’s not positivity that ignores and escapes reality.

Instead, it’s the most alive, commanding, invincible, foe-conquering reality of ACTION.

Gratitude is not something you feel.  It is something you do.  We are wired to feel awesome when we activate gratitude inside of the frustration. - Kevin Clayson

Even more potently,]]>
Bruce Wehner & Rachel Marshall clean 1:05:38
Saving vs. Investing: What Is Savings? – TMA 017 https://themoneyadvantage.com/saving-vs-investing-what-is-savings/ Mon, 05 Mar 2018 10:00:49 +0000 https://themoneyadvantage.com/?p=1670 What Is Savings: Why We Need a Definition In all the financial pressure you feel to plan for the future, have you ever stopped to consider, fundamentally, what is savings?  Often the answer is in asking the right questions.  Concerning great questions, this is one that will behoove you to ask, understand, and answer that question for yourself.  Savings.  We love having it.  We know we need it.  Everybody wants more of it. Savings is a precept of wealth-building.  It’s a foundational cornerstone and precursor to success in almost every other area of your financial life. And yet, frankly, the savings levels of American adults are embarrassing.  Most people’s savings accounts languish far beneath the level of what they want to have. According to a 2016 GOBankingRates survey, 34% of all adults in the U.S. have $0 in savings, 35% have less than $1000, and ONLY 15% have $10,000 or more. There’s a disparity between our desire to save and the amount we have in savings.  For that reason, our mindset about savings becomes laden with guilt. To add insult to injury, there’s confusion about what savings, in fact, is. It’s pretty hard to achieve something you don’t feel good about or have a clear definition of.  It will continually be “un-prioritized.”   The Nuts and Bolts To clear the air and help you save more, let’s get down to brass tacks. We’re tackling what savings is and what it isn’t.  We’ll answer: What is savings and what is it not? How do I know if it’s savings? Where can I save my money? What are the best places to save money? And we’ll share the four top reasons why people aren’t saving, to help you overcome them and set you on a course to financial confidence and freedom. The foundations are the most important pieces to get right.  Whether you have significant savings and are looking for a better storage tank, want to beef up your savings, or if you’re just getting started, this discussion will help you get the clarity you need to up-level your savings. Related Articles and Podcast Episodes In Why the Wealthy Love Cash (Savings) Part 1 and Why the Wealthy Love Cash Part 2, we discussed the reasons the wealthy save: to create confidence and peace of mind, to sleep better at night, and to have the liquidity to jump into the right opportunities. In How to Save Like the Wealthy, we discussed how to design a system for managing the flow of your money that builds an emergency and opportunity fund and puts you in control. Our Definition of Savings Needs Work In this article, we’ll bring you 100% clarity on what savings is. Firstly, let’s start with your definition of savings.  What does it mean to you?  Write down your thoughts before you proceed, and we’ll revisit them at the end.  Notice any ambiguity in your thinking. If you asked a roomful of people to answer the question, “What is savings?”, chances are, you’d get a handful of different responses. Some might say it’s having money left over each month after your spending.  Another might say it’s their retirement account.  Another may say savings is their savings account, an emergency fund, or a rainy-day fund. Even the all-knowing Google or dictionary definition will yield many answers, but not give clarity on what it means financially and what to do about it. This haziness makes it challenging to move the needle from “a nice idea” to something that’s concretely and habitually built into the fabric of your life. The Starting Point of Cash Flow The Merriam-Webster dictionary defines savings as: The excess of income over consumption expenditures, money put by. This speaks to the verb – the action – of saving.  Saving as an action is what you do.  It means “not spending.” The first step in saving is to have monthly cash flow, which is money not spent.  Cash flow is the difference between your income and your expenses.  You can also call it profit or surplus. Income – Expenses = Cash Flow What Is Savings: Why We Need a Definition In all the financial pressure you feel to plan for the future, have you ever stopped to consider, fundamentally, what is savings?  Often the answer is in asking the right questions. In all the financial pressure you feel to plan for the future, have you ever stopped to consider, fundamentally, what is savings?  Often the answer is in asking the right questions.  Concerning great questions, this is one that will behoove you to ask, understand, and answer that question for yourself.

Savings.  We love having it.  We know we need it.  Everybody wants more of it.

Savings is a precept of wealth-building.  It’s a foundational cornerstone and precursor to success in almost every other area of your financial life.

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

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

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

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

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

 


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

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

* What is savings and what is it not?
* How do I know if it’s savings?
* Where can I save my money?
* What are the best places to save money?

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

The foundations are the most important pieces to get right.  Whether you have significant savings and are looking for a better storage tank, want to beef up your savings, or if you’re just getting started, this discussion will help you get the clarity you need to up-level your savings.
Related Articles and Podcast Episodes
In Why the Wealthy Love Cash (Savings) Part 1 and Why the Wealthy Love Cash Part 2, we discussed the reasons the wealthy save: to create confidence and peace of mind, to sleep better at night, and to have the liquidity to jump into the right opportunities.

In How to Save Like the Wealthy, we discussed how to design a system for managing the flow of your money that builds an emergency and opportunity fund and puts you in control.
Our Definition of Savings Needs Work
In this article, we’ll bring you 100% clarity on what savings is.

Firstly, let’s start with your definition of savings.  What does it mean to you?  Write down your thoughts before you proceed, and we’ll revisit them at the end.  Notice any ambiguity in your thinking.

If you asked a roomful of people to answer the question, “What is savings?”, chances are, you’d get a handful of different responses.

Some might say it’s having money left over each month after your spending.  Another might say it’s their retirement account.  Another may say savings is their savings account, an emergency fund, or a rainy-day fund.

Even the all-knowing Google or dictionary definition will yield many answers...]]>
Bruce Wehner & Rachel Marshall clean 58:46
Trump’s Tax Reform: What Entrepreneurs Need to Know, with Dustin Griffiths – TMA 016 https://themoneyadvantage.com/trumps-tax-reform-dustin-griffiths/ Mon, 26 Feb 2018 10:00:21 +0000 https://themoneyadvantage.com/?p=1720 Trump's tax reform has made a lot of big changes to the tax code.  Because of the overhaul, our proactive tax team posted a series of blogs outlining the changes and what they mean for you.  When we read them, we knew right away that we wanted to share them with you. So, we brought Dustin Griffiths back on the podcast to share the changes we think are most relevant to the small business owner.  We're also sharing the links to all of their blogs to help you gain more clarity. Disclaimer: We've published this content for educational purposes only.  For individual recommendations and advice for your specific situation, please consult with a qualified tax professional.   Listen to the Podcast This conversation expanded on each of the following topics.  We discussed examples and situations to help you understand how the changes will apply to you.  To gain the greatest understanding, be sure to listen to the conversation. How Trump's Tax Reform Affects You Corporate Tax Rates Corporate tax rates went down from 34% to 21%.  However, C corps pay a double tax.  They're taxed at the corporate level and again at the individual shareholder level when you pay yourself.  Your total tax rate must account for both, and may effectively create a total tax rate of 36 - 51%. 20% Deduction for Pass-Through Entities Pass-through entities, like partnerships, S corporations, and sole proprietors, now will only have to claim 80% of business taxable income.  However, there are additional calculations if your AGI is over $315K or ($157K if you're single), and for service-based businesses, to determine if and how you can use this deduction. This is a “YUGE” tax savings for many small business owners!  Without doing anything differently, many of you are going to get a 20% reduction of your business's taxable income. Vehicle and Asset Purchases Asset purchases have received an expansion of the Bonus Depreciation and Section 179 definition, as well as the depreciation limits.  This allows you to deduct 100% of the depreciation up front, in many cases, being able to fully expense the purchase price in the first year, for new and used assets. This expansion puts more dollars in your pocket for large asset purchases.  However, the true test to determine whether to purchase an asset is whether you needed it in the first place. Business Expense Changes You can no longer deductions meals and entertainment expenses unless you use them for your employees. If you find that you had a lot of these entertainment expenses or eating out with clients, business just got more expensive. Changes in Real Estate Tax Laws For residential or commercial real estate investors, the reform simplified the definition of property improvements and limited the 1031 like-kind exchanges to real property.  Additionally, rules to inventory, including real property, allow you to deduct the purchase of inventory up-front, instead of at the sale. Individual Tax Return Changes For most people, tax rates decreased by around 2%.  The standard deduction nearly doubled, and many of the itemized deductions were eliminated (including miscellaneous itemized deductions, mortgage interest deductions for HELOCs or for loans over $750k).  This simplifies the filing for many people who will no longer benefit from itemizing their deductions to reduce their taxable income.  Personal exemptions of around $4k per person were eliminated, and the Child Tax Credit was increased from $1k to $2k per child.  The deduction for state and local taxes was limited to $10k.  Medical expenses can be claimed if they're over 7.5% of AGI, making it easier to deduct these costs. Other Topics Transportation expenses - The employer is no longer able to deduct costs of employee transportation to and from work. Research and experimental - Now instead of having the option to expense this purchase or amortize over 5 years, you must amortize. Trump's tax reform has made a lot of big changes to the tax code.  Because of the overhaul, our proactive tax team posted a series of blogs outlining the changes and what they mean for you.  When we read them,
So, we brought Dustin Griffiths back on the podcast to share the changes we think are most relevant to the small business owner.  We're also sharing the links to all of their blogs to help you gain more clarity.

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

 
Listen to the Podcast


This conversation expanded on each of the following topics.  We discussed examples and situations to help you understand how the changes will apply to you.  To gain the greatest understanding, be sure to listen to the conversation.
How Trump's Tax Reform Affects You
Corporate Tax Rates
Corporate tax rates went down from 34% to 21%.  However, C corps pay a double tax.  They're taxed at the corporate level and again at the individual shareholder level when you pay yourself.  Your total tax rate must account for both, and may effectively create a total tax rate of 36 - 51%.
20% Deduction for Pass-Through Entities
Pass-through entities, like partnerships, S corporations, and sole proprietors, now will only have to claim 80% of business taxable income.  However, there are additional calculations if your AGI is over $315K or ($157K if you're single), and for service-based businesses, to determine if and how you can use this deduction.

This is a “YUGE” tax savings for many small business owners!  Without doing anything differently, many of you are going to get a 20% reduction of your business's taxable income.
Vehicle and Asset Purchases
Asset purchases have received an expansion of the Bonus Depreciation and Section 179 definition, as well as the depreciation limits.  This allows you to deduct 100% of the depreciation up front, in many cases, being able to fully expense the purchase price in the first year, for new and used assets.

This expansion puts more dollars in your pocket for large asset purchases.  However, the true test to determine whether to purchase an asset is whether you needed it in the first place.
Business Expense Changes
You can no longer deductions meals and entertainment expenses unless you use them for your employees.

If you find that you had a lot of these entertainment expenses or eating out with clients, business just got more expensive.
Changes in Real Estate Tax Laws
For residential or commercial real estate investors, the reform simplified the definition of property improvements and limited the 1031 like-kind exchanges to real property.  Additionally, rules to inventory, including real property, allow you to deduct the purchase of inventory up-front, instead of at the sale.
Individual Tax Return Changes
For most people, tax rates decreased by around 2%.  The standard deduction nearly doubled, and many of the itemized deductions were eliminated (including miscellaneous itemized deductions, mortgage interest deductions for HELOCs or for loans over $750k).  This simplifies the filing for many people who will no longer benefit from itemizing their deductions to reduce their taxable income.  Personal exemptions of around $4k per person were eliminated, and the Child Tax Credit was increased from $1k to $2k per child.  The deduction for state and local taxes was limited to $10k.  Medical expenses can be claimed if they're over 7.5% of AGI, making it easier to deduct these costs.
Other Topics

]]>
Bruce Wehner & Rachel Marshall clean 1:02:06
How to Save Like the Wealthy – TMA 015 https://themoneyadvantage.com/how-to-save-like-the-wealthy/ Mon, 19 Feb 2018 10:00:36 +0000 https://themoneyadvantage.com/?p=1538 If you want to seize opportunities like the wealthy, you will need to save like the wealthy. Building a financial system is a lot like barrel racing. Far away from the roar of audiences, the outcome of the race is determined by the hours of preparation and conditioning spent outside the ring, out of the public eye, before the race. Likewise, in building true wealth, developing a savings system is the preparation and conditioning it takes to succeed.     Everything I Needed to Know I Learned from Equestrian Barrel Racing As a teen, I rode horses.  I got into competitive racing in speed and agility games like barrel racing, pole weaving, and keyhole. Just about everything I needed to know about life, I learned from the process of training to win in the ring. Where Winning HAPPENS The climax of barrel racing was the high-adrenaline, crowd-cheering, dirt-flying 28 seconds careening around the cloverleaf pattern of the barrel racing course.  Or it was the 11 seconds spent in the ring flashing through the pole-weaving course. I lived for that part.  The moment of truth.  It’s where the winning happened. From a spectator’s vantage point, it would be so easy to think it was the only part that mattered. Where Winning Is CREATED However, far more critical to the outcome were the hours upon hours of training and preparation. To perform well, conditioning was essential. There were warm-ups and cool-downs at a brisk trot.  We raced for miles upon miles across varied terrain to build endurance and stamina.  There were hundreds of hours of rides through the fields and forests, on trails, through swamps, and over fallen logs as we built agility and light-footedness. We took hundreds of practice runs at all paces, focusing on the fundamentals.  There were lurching starts, and sliding stops at the gentle flick of a wrist.  We practiced lead changes at a light pace with slight shift of weight. We worked over and over on exactly the right lead changes at the exactly the right moment, leaning into the turns at exactly the right point in the turn with exactly the right angles.  My horse and I learned to pay attention to the littlest things in order to be in tune with each other, listening, dancing. Precision.  Endurance.  Agility.  Speed.  Conditioning was the make-or-break of racing. Need I mention the even lesser-applauded routines like feeding, grooming, doctoring, and barn cleaning?  Compared to the competition?  Boring.  No audience.  No cheering crowds.  No timers or metrics. The point?  If you focus just on the flashy event, you’ll miss all the components that make up the win: the preparation, the conditioning, and the set-up. Winning Is in the Fundamentals and Conditioning, Not the Climax  But this is where the ability to win was built: in the fundamentals. Many people put off the boring stuff of saving now, thinking they need a windfall or higher income first. But having a systematic plan to save in your personal economy is what sets you up to win in the first place. A disciplined, consistent, routine way of handling your money that perpetually builds savings is the preparation and conditioning required to create wealth. The truly wealthy have a definitive WHY.  They’ve developed their financial philosophy and rules.  They concentrate on and value the preparation and conditioning, rather than the singular event. They make the preparation the main thing. Your Savings System The habit and discipline of saving is financial conditioning that prepares you and creates the ability to win. Without preparation, you shoot yourself in the foot.  When the opportunity comes knocking, you'll have to pass because you don’t have the money. In Why the Wealthy Love Cash, Part 1, we revealed the most important reasons to have a significant cash buffer.  When you have a considerable emergency/opportunity fund, you’re confident and secure.  You sleep better at night, If you want to seize opportunities like the wealthy, you will need to save like the wealthy. - Building a financial system is a lot like barrel racing. - Far away from the roar of audiences, the outcome of the race is determined by the hours of prepa...
Building a financial system is a lot like barrel racing.

Far away from the roar of audiences, the outcome of the race is determined by the hours of preparation and conditioning spent outside the ring, out of the public eye, before the race.

Likewise, in building true wealth, developing a savings system is the preparation and conditioning it takes to succeed.

 

 


Everything I Needed to Know I Learned from Equestrian Barrel Racing
As a teen, I rode horses.  I got into competitive racing in speed and agility games like barrel racing, pole weaving, and keyhole.

Just about everything I needed to know about life, I learned from the process of training to win in the ring.
Where Winning HAPPENS
The climax of barrel racing was the high-adrenaline, crowd-cheering, dirt-flying 28 seconds careening around the cloverleaf pattern of the barrel racing course.  Or it was the 11 seconds spent in the ring flashing through the pole-weaving course.

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

From a spectator’s vantage point, it would be so easy to think it was the only part that mattered.
Where Winning Is CREATED
However, far more critical to the outcome were the hours upon hours of training and preparation.

To perform well, conditioning was essential.

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

We took hundreds of practice runs at all paces, focusing on the fundamentals.  There were lurching starts, and sliding stops at the gentle flick of a wrist.  We practiced lead changes at a light pace with slight shift of weight.

We worked over and over on exactly the right lead changes at the exactly the right moment, leaning into the turns at exactly the right point in the turn with exactly the right angles.  My horse and I learned to pay attention to the littlest things in order to be in tune with each other, listening, dancing.

Precision.  Endurance.  Agility.  Speed.  Conditioning was the make-or-break of racing.

Need I mention the even lesser-applauded routines like feeding, grooming, doctoring, and barn cleaning?  Compared to the competition?  Boring.  No audience.  No cheering crowds.  No timers or metrics.

The point?  If you focus just on the flashy event, you’ll miss all the components that make up the win: the preparation, the conditioning, and the set-up.
Winning Is in the Fundamentals and Conditioning, Not the Climax 
But this is where the ability to win was built: in the fundamentals.

Many people put off the boring stuff of saving now, thinking they need a windfall or higher income first.

But having a systematic plan to save in your personal economy is what sets you up to win in the first place.
A disciplined, consistent, routine way of handling your money that perpetually builds savings is the preparation and conditioning required to create wealth.
The truly wealthy have a definitive WHY.  They’ve developed their financial philosophy and rules.  They concentrate on and value the preparation and conditioning, rather than the singular event.

They make the preparation the main thing.
Your Savings System
The habit and discipline of saving is financial conditioning that prepares you and creates the ability to win.

Without preparation, you shoot yourself in the foot.]]>
Bruce Wehner & Rachel Marshall clean 39:29
Explode Real Estate Returns with Privatized Banking, with Jimmy Vreeland – TMA 014 https://themoneyadvantage.com/explode-real-estate-returns-privatized-banking-jimmy-vreeland/ Mon, 12 Feb 2018 10:00:50 +0000 https://themoneyadvantage.com/?p=1601 One growing company is maximizing their real estate returns by using the premier financing strategy of the wealthy.  As stand-alone tools, both real estate and high cash value life insurance are top-notch.  Their powers of cash flow, appreciation, equity, leverage, tax advantages, and a hedge against inflation are unrivaled by any other product. But when you combine these two high-quality assets together, your money does two things at the same time.  This gives you an unfair advantage parallel to none. If you’re a believer in one or the other, see how using these two assets symbiotically will supercharge your results.   Two Starting Points to the Same Bridge You may be starting from one pillar or the other. On the one hand, perhaps you have cash value life insurance.  You want more than just to let the money sit in the policy.  You’re asking: How can I use my cash value life insurance to invest in cash-flowing real estate to accelerate my financial freedom? On the other hand, perhaps you are a real estate investor.  You want to finance most efficiently to increase your gains.  You’re asking: How do I amplify my real estate returns, by financing through cash value life insurance? We found no one better to help you understand this strategy than Jimmy Vreeland.  He's a real estate investor who is exploding his real estate returns by building a bridge between these two assets. Jimmy is a passionate real estate investor who is also helping other investors to reap the rewards of real estate investing. The Advantages of Real Estate Jimmy was an Army Ranger and US military officer who read Rich Dad, Poor Dad while he was in Afghanistan. He realized that he wanted to create systematic, scalable wealth through cash flow in a low-tax environment. He wanted an asset that he controlled, where he could build wealth by creating value instead of gambling through investments on Wall Street. All the indicators pointed to real estate. Consequently, he bought his first property in 2006 and began adding one property per year. The Beginnings of a Real Estate Lease Options Empire In 2014, Jimmy and Bob Scott, both former US Military officers and Academy Graduates, partnered to create Joint Ops Properties to capitalize on unique opportunities in the US Real Estate market. Joint Ops is now a leader in lease option investment properties.  They have decades of combined experience behind them, with an emphasis on the St. Louis area. Joint Ops Properties has been able to secure over 160 distressed properties, plus another 40 turnkey properties, often at just 30 to 40 cents on the dollar.  Joint Ops currently focuses on single-family homes and tenants seeking a lease to own option, resulting in tenant buyers with more “skin in the game” as opposed to a traditional tenant with no long-term interest in the home. Providing Value to Tenants and Investors Joint Ops is providing value to tenants, investors, and the community of St. Louis.  A New Lease on Life for Tenants They offer lease options to tenants in the St. Louis, MO area, allowing them to sign an option to buy at an agreed-upon price in 2 years in exchange for 5% of the value up front.  This allows the tenant time and consistent payments to fix their credit so that they can work their way into an FHA 30-year mortgage. Cash Flow for Investors For investors looking for monthly cash flow, Joint Ops offers private lending and turnkey real estate options. Private lending puts the lender in the 1st and only lien position for a single property.  As the financier of the property, the lender receives monthly cash flow income.  If the tenant exercises the option to purchase, the lender receives the initial payment back. They also provide turnkey solutions as a viable choice for high-paid professionals or business owners who want to get started in real estate investing, but don’t have the knowledge or experience, One growing company is maximizing their real estate returns by using the premier financing strategy of the wealthy.  As stand-alone tools, both real estate and high cash value life insurance are top-notch.  Their powers of cash flow, appreciation, 
As stand-alone tools, both real estate and high cash value life insurance are top-notch.  Their powers of cash flow, appreciation, equity, leverage, tax advantages, and a hedge against inflation are unrivaled by any other product.

But when you combine these two high-quality assets together, your money does two things at the same time.  This gives you an unfair advantage parallel to none.

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

 


Two Starting Points to the Same Bridge
You may be starting from one pillar or the other.

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

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

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

Jimmy is a passionate real estate investor who is also helping other investors to reap the rewards of real estate investing.
The Advantages of Real Estate
Jimmy was an Army Ranger and US military officer who read Rich Dad, Poor Dad while he was in Afghanistan.

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

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

All the indicators pointed to real estate.

Consequently, he bought his first property in 2006 and began adding one property per year.
The Beginnings of a Real Estate Lease Options Empire
In 2014, Jimmy and Bob Scott, both former US Military officers and Academy Graduates, partnered to create Joint Ops Properties to capitalize on unique opportunities in the US Real Estate market.

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

Joint Ops Properties has been able to secure over 160 distressed properties, plus another 40 turnkey properties, often at just 30 to 40 cents on the dollar.  Joint Ops currently focuses on single-family homes and tenants seeking a lease to own option, resulting in tenant buyers with more “skin in the game” as opposed to a traditional tenant with no long-term interest in the home.
Providing Value to Tenants and Investors
Joint Ops is providing value to tenants, investors, and the community of St. Louis. 
A New Lease on Life for Tenants
They offer lease options to tenants in the St. Louis, MO area, allowing them to sign an option to buy at an agreed-upon price in 2 years in exchange for 5% of the value up front.  This allows the tenant time and consistent payments to fix their credit so that they can work their way into an FHA 30-year mortgage.
Cash Flow for Investors
For investors looking for monthly cash flow, Joint Ops offers private lending and turnkey real estate options.

Private lending puts the lender in the 1st and only lien position for a single property.  As the financier of the property, the lender receives monthly cash flow income.  If the tenant exercises the option to purchase,]]>
Bruce Wehner & Rachel Marshall clean 49:15
Why the Wealthy Love Cash, Part 2 – TMA 013 https://themoneyadvantage.com/why-the-wealthy-love-cash-part-2/ Mon, 05 Feb 2018 10:00:59 +0000 https://themoneyadvantage.com/?p=798 The concept of holding cash – savings – is such an intricate, multi-faceted one.  This series will walk you through the WHY, the compelling reasons to value and build cash savings.  Then, we’ll show you how to apply it and reveal the key distinctions to keep you on track. If you have a great enough WHY, then figuring out what to do becomes important.  But it all comes back to WHY. Since we love Simon Sinek’s Start with Why concept, we aim to apply it in everything we communicate.  You may have noticed.     Real Life Stories and Examples of the Ultra-Wealthy Who Have a Strong Cash Position We know that theory without concrete evidence and facts to back it up is useless.  In fact, it will probably just fade out of your mind like a sand castle washed away by the waves. Today we're digging into some examples of the ultra-wealthy who are comfortable being in cash.  They don't feel the need to be fully invested all the time. We’ll discuss examples of Suze Orman and Mark Cuban, and their reasons for a strong position of safety and cash. We’ll point you to a bank report showing that the super-rich with over $30 Million in investible assets often have about 35% of their total portfolio in cash. And then, we’ll give you a Cash Flow Awareness Exercise you can do personally.  It's the same exercise that we use for our clients to help them think through their spending so they can free up more surplus cash each month. An Empowering Philosophy of Saving In Why the Wealthy Love Cash, Part 1, we discussed many of the ideas and philosophy about WHY savings is not only relevant but also crucial to your success. Cash savings creates peace of mind so you’re able to operate from a mindset of abundance and confidence.  With that perspective, you'll make better decisions and have greater clarity. Savings has guarantees.  That creates more options in the future. Because you have peace of mind and guarantees, you’re not desperate.  You focus your time and energy on the right clients, activities, and investments that align with your Investor DNA.  In this way, you create more value. You have the cash to cover setbacks, unexpected expenses, emergencies, or failure.  You’re able to rebound because cash is king, especially in a crisis. Budgeting and paying off debt are two strategies often touted as the root of financial confidence and freedom.  But neither create the same confidence that savings will. Aside from saving for emergencies, one of the primary reasons to save is for opportunities.  Not surprisingly, opportunities find people with cash. Another reason to put money aside is for no-regrets fun.  That way, you don’t have to feel guilty when you spend just for your personal enjoyment.  Because you've prioritized that spending, you'll no longer have the negative feelings of guilt tainting your experience.  When you’re doing what you love and enjoying life, you are more energized and productive in every other area of your life. Additional reasons to save include future taxes, inflation, planned obsolescence and technological advances. After laying down clear reasons for why savings is a priority and what it allows you to do, we’re ready to look at some context. Learn from Success One of the premises woven into our mindset at The Money Advantage is that, because success leaves clues, we’re able to learn from the successful few and discard the “advice” of the crowds who aren’t living the life you want to live. As we do so, I want to encourage you to find where your thinking aligns or doesn’t, with these stories.  Just because something is right for someone, and they have their reasons, doesn’t mean that your objectives are the same as theirs.  We want to learn not only what they did, but why.  Then we can model the successful few. Thinking About Your Thinking As we discuss the tangible action of saving, you may become aware of a different set of choices that you'd like to be making.... The concept of holding cash – savings – is such an intricate, multi-faceted one.  This series will walk you through the WHY, the compelling reasons to value and build cash savings.  Then, we’ll show you how to apply it and reveal the key distinction... 
Then, we’ll show you how to apply it and reveal the key distinctions to keep you on track.

If you have a great enough WHY, then figuring out what to do becomes important.  But it all comes back to WHY.

Since we love Simon Sinek’s Start with Why concept, we aim to apply it in everything we communicate.  You may have noticed.

 

 


Real Life Stories and Examples of the Ultra-Wealthy Who Have a Strong Cash Position
We know that theory without concrete evidence and facts to back it up is useless.  In fact, it will probably just fade out of your mind like a sand castle washed away by the waves.

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

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

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

And then, we’ll give you a Cash Flow Awareness Exercise you can do personally.  It's the same exercise that we use for our clients to help them think through their spending so they can free up more surplus cash each month.
An Empowering Philosophy of Saving
In Why the Wealthy Love Cash, Part 1, we discussed many of the ideas and philosophy about WHY savings is not only relevant but also crucial to your success.

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

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

Because you have peace of mind and guarantees, you’re not desperate.  You focus your time and energy on the right clients, activities, and investments that align with your Investor DNA.  In this way, you create more value.

You have the cash to cover setbacks, unexpected expenses, emergencies, or failure.  You’re able to rebound because cash is king, especially in a crisis.

Budgeting and paying off debt are two strategies often touted as the root of financial confidence and freedom.  But neither create the same confidence that savings will.

Aside from saving for emergencies, one of the primary reasons to save is for opportunities.  Not surprisingly, opportunities find people with cash.

Another reason to put money aside is for no-regrets fun.  That way, you don’t have to feel guilty when you spend just for your personal enjoyment.  Because you've prioritized that spending, you'll no longer have the negative feelings of guilt tainting your experience.  When you’re doing what you love and enjoying life, you are more energized and productive in every other area of your life.

Additional reasons to save include future taxes, inflation, planned obsolescence and technological advances.

After laying down clear reasons for why savings is a priority and what it allows you to do, we’re ready to look at some context.
Learn from Success
One of the premises woven into our mindset at The Money Advantage is that, because success leaves clues, we’re able to learn from the successful few and discard the “advice” of the crowds who aren’t liv...]]>
Bruce Wehner & Rachel Marshall clean 55:02
Prosperity Economcis Principles, with Kim D.H. Butler – TMA 012 https://themoneyadvantage.com/prosperity-economics-principles-kim-butler/ Mon, 29 Jan 2018 10:00:55 +0000 https://themoneyadvantage.com/?p=1188 Kim Butler is a champion of Prosperity Economics principles who's bringing them back into the mainstream.  She’s revitalizing the traditional way of thinking, condensing age-old wealth principles into the 7 Principles of Prosperity.  She helps people get their money doing more jobs and building wealth outside of Wall Street. She’s the owner of Partners 4 Prosperity, a Registered Investment Advisory firm dedicated to the Prosperity Economics Principles. Additionally, Kim serves as the co-host of the Prosperity Podcast and a best-selling author of 6 books, including Live Your Life Insurance and Busting the Retirement Lies. She’s recommended by financial thought leaders like Robert Kiyosaki and has been listed in Investopedia’s top 100 most influential financial advisors in 2017. She’s been a tremendous influence on the philosophy and work of The Money Advantage, and we have the utmost respect for her. In this interview, we discuss her backstory.  You’ll see how she developed her financial wisdom and how her abundance mindset is allowing her to continue her objective to help as many people as possible in as many ways as possible.   Here are the highlights: Before Kim Started Partners 4 Prosperity [3:30] Kim was a “typical” financial planner, with a Series 6 and 7 licenses to sell stocks, bonds, and mutual funds.  She made her living creating and delivering financial plans. When she became aware of the assumptions that made the plans unreliable the moment they were printed, she became disenfranchised with typical financial planning.  She felt she was subjecting clients’ money to so much risk. The Assumptions of Typical Financial Planning [5:25] The client is responsible to project when they’ll want to retire, what exactly they would want to happen if they had died yesterday, what interest rate they expect to achieve, and what inflation rate they presume. Because the foundation for the plans is complete guesswork, the plans have failed people as the roadmap they were intended to be. An Entrepreneurial Journey That Started in 4th Grade [6:53] When Kim was in 4th grade, her parents gifted her the raw materials for a business. They gave her a milk cow and taught her how to milk by hand.  She sold milk to friends and neighbors, earning an income.  She had to keep track of her finances, manage expenses, collect payment, and pay taxes. Giving up a Designation to Provide More Guarantees and Certainty [10:00] Kim had earned and held the Certified Financial Planner (CFP) designation.  To maintain her designation, Kim kept up with her continuing education.  Time and time again, she found incorrect assumptions that she could no longer subscribe to.  The questions and answers were simply incorrect. She realized that the designation didn’t have weight or meaning for clients.  If she had a designation at all, she wanted it to be about her clients, not about what test she had passed. She gave up the CFP designation to maintain the integrity of her convictions and be able to provide clients with more guarantees and certainty. Better Than Typical Financial Planning [11:50] Prosperity Economics was developed based on historical principles you find in the Bible and books like The Richest Man in Babylon.  It is basic economic theory and principles used in the corporate world, brought down to a personal level. The 7 Prosperity Economics Principles [13:15] Here are the seven Prosperity Economics principles that can be used as a guide to all financial decision-making: Think from a prosperous mindset See the big picture Measure opportunity cost Flow – create cash flow, into our life and out into savings Control – don’t give up control (in assets like the TSP, 401(k), 403(b), and IRA) Move – get dollars to move through assets instead of to assets Multiply – if we can move through assets, we can multiply their effectiveness and benefits, often called “velocity of money” Kim Butler is a champion of Prosperity Economics principles who's bringing them back into the mainstream.  She’s revitalizing the traditional way of thinking, condensing age-old wealth principles into the 7 Principles of Prosperity.

She’s the owner of Partners 4 Prosperity, a Registered Investment Advisory firm dedicated to the Prosperity Economics Principles.

Additionally, Kim serves as the co-host of the Prosperity Podcast and a best-selling author of 6 books, including Live Your Life Insurance and Busting the Retirement Lies.

She’s recommended by financial thought leaders like Robert Kiyosaki and has been listed in Investopedia’s top 100 most influential financial advisors in 2017.

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

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

 



Here are the highlights:
Before Kim Started Partners 4 Prosperity
[3:30] Kim was a “typical” financial planner, with a Series 6 and 7 licenses to sell stocks, bonds, and mutual funds.  She made her living creating and delivering financial plans.

When she became aware of the assumptions that made the plans unreliable the moment they were printed, she became disenfranchised with typical financial planning.  She felt she was subjecting clients’ money to so much risk.
The Assumptions of Typical Financial Planning
[5:25] The client is responsible to project when they’ll want to retire, what exactly they would want to happen if they had died yesterday, what interest rate they expect to achieve, and what inflation rate they presume.

Because the foundation for the plans is complete guesswork, the plans have failed people as the roadmap they were intended to be.
An Entrepreneurial Journey That Started in 4th Grade
[6:53] When Kim was in 4th grade, her parents gifted her the raw materials for a business.

They gave her a milk cow and taught her how to milk by hand.  She sold milk to friends and neighbors, earning an income.  She had to keep track of her finances, manage expenses, collect payment, and pay taxes.
Giving up a Designation to Provide More Guarantees and Certainty
[10:00] Kim had earned and held the Certified Financial Planner (CFP) designation.  To maintain her designation, Kim kept up with her continuing education.  Time and time again, she found incorrect assumptions that she could no longer subscribe to.  The questions and answers were simply incorrect.

She realized that the designation didn’t have weight or meaning for clients.  If she had a designation at all, she wanted it to be about her clients, not about what test she had passed.

She gave up the CFP designation to maintain the integrity of her convictions and be able to provide clients with more guarantees and certainty.
Better Than Typical Financial Planning
[11:50] Prosperity Economics was developed based on historical principles you find in the Bible and books like The Richest Man in Babylon.  It is basic economic theory and principles used in the corporate world, brought down to a personal level.]]>
Bruce Wehner & Rachel Marshall clean 50:22
Why the Wealthy Love Cash, Part 1 – TMA 011 https://themoneyadvantage.com/why-the-wealthy-love-cash-savings-part-1/ Mon, 22 Jan 2018 10:00:35 +0000 https://themoneyadvantage.com/?p=857 Have you ever had conflicting thoughts about cash savings?  You'd feel better with more savings, but you're not really sure it's a winning financial strategy. Savings is pure magic.  Within its seed is infinite and tremendous potential.  This article will help you see and unleash the power of savings to accomplish your financial goals. Savings is a value of the ultra-wealthy.  Having savings – liquid, accessible, safe cash – is critical and relevant, even in today’s economy, even with boring returns. But because the hard pull of the media, financial messaging, and what everyone else is doing points the opposite direction, saving often becomes snubbed and overlooked. Savings certainly doesn’t have the most electrifying connotation, I know. Because today's interest rates are at an all-time low, saving money seems wasteful.  It seems you’re putting your money out of commission, letting it just sit on the sidelines. In addition, financing is cheap and easy.  It quickly becomes a go-to source of capital when you don’t have cash of your own. To top it off, it seems like investments get higher returns than savings do, and that you’ll end up ahead if you invest instead. But, could this be only part of the story?   The Big Why of Savings: It Protects Your Mindset As we embark on this series about savings, we’ll walk through the reasons why having cash is so meaningful, from the perspective of the wealthy.  It becomes apparent that they’ve thought differently than everyone who’s currently tethered to “average” status.  It's enough to take notice. The wealthy know how to build financial wealth.  But they recognize that true wealth is a richness of mind, body, spirit, and relationships.  Their goal is a more fulfilling quality of life in every category of their life, today and in the future.  They meticulously attend to creating a life that supports that objective. Mental health tops the list.  With confidence and peace of mind, they're at their best.  They have the most creative, relaxed, confident version of themselves to bring to the table.  It allows them to use their unique abilities to create value and serve others. They go to great lengths to protect their mindset.  They value savings because it protects their peace of mind and gives them confidence for the future. With cash, they’re poised to take advantage of future opportunities, especially during a crisis. We’ll learn what they are doing as they prepare for the future, with an ear to the ground, listening to what is around the corner. Definition of Savings To make sure we’re on the same page before we dive in, let’s answer this question first:  What exactly is savings?  In order to really focus our discussion, it’s important to take a clear look at this first. What intrinsically makes savings, savings? Savings is an asset that's easily converted to usable cash, that's not at risk of losing value. In contrast, investing has the potential for returns, but also the potential for loss. What types of accounts would be classified as savings? This could be dollar bills in a coffee can buried in the backyard, money in the bank, CDs, money market accounts, or life insurance cash value you can access. The Litmus Test of Savings: Not Losing Value When we say savings doesn’t lose value, let’s talk about what value means. There’s two primary types of value: (1) account value, and (2) buying power. Account Value: Safe vs. Risk Account value is related to the dollar value of the account. Say your savings account has $100,000.  Tomorrow’s dollar value of that account will remain $100K, unless you put more money in, take some out, or receive growth due to interest.  The dollars will remain constant. Because the underlying assets of savings are safe, savings doesn’t lose account value.  You don’t have fluctuations in a savings account value up to $120K, down to $65K, and back up to $101K, Have you ever had conflicting thoughts about cash savings?  You'd feel better with more savings, but you're not really sure it's a winning financial strategy. - Savings is pure magic.  Within its seed is infinite and tremendous potential.
Savings is pure magic.  Within its seed is infinite and tremendous potential.  This article will help you see and unleash the power of savings to accomplish your financial goals.

Savings is a value of the ultra-wealthy.  Having savings – liquid, accessible, safe cash – is critical and relevant, even in today’s economy, even with boring returns.

But because the hard pull of the media, financial messaging, and what everyone else is doing points the opposite direction, saving often becomes snubbed and overlooked.

Savings certainly doesn’t have the most electrifying connotation, I know.

Because today's interest rates are at an all-time low, saving money seems wasteful.  It seems you’re putting your money out of commission, letting it just sit on the sidelines.

In addition, financing is cheap and easy.  It quickly becomes a go-to source of capital when you don’t have cash of your own.

To top it off, it seems like investments get higher returns than savings do, and that you’ll end up ahead if you invest instead.

But, could this be only part of the story?

 


The Big Why of Savings: It Protects Your Mindset
As we embark on this series about savings, we’ll walk through the reasons why having cash is so meaningful, from the perspective of the wealthy.  It becomes apparent that they’ve thought differently than everyone who’s currently tethered to “average” status.  It's enough to take notice.

The wealthy know how to build financial wealth.  But they recognize that true wealth is a richness of mind, body, spirit, and relationships.  Their goal is a more fulfilling quality of life in every category of their life, today and in the future.  They meticulously attend to creating a life that supports that objective.

Mental health tops the list.  With confidence and peace of mind, they're at their best.  They have the most creative, relaxed, confident version of themselves to bring to the table.  It allows them to use their unique abilities to create value and serve others.

They go to great lengths to protect their mindset.  They value savings because it protects their peace of mind and gives them confidence for the future.

With cash, they’re poised to take advantage of future opportunities, especially during a crisis.

We’ll learn what they are doing as they prepare for the future, with an ear to the ground, listening to what is around the corner.
Definition of Savings
To make sure we’re on the same page before we dive in, let’s answer this question first:  What exactly is savings?  In order to really focus our discussion, it’s important to take a clear look at this first.

What intrinsically makes savings, savings?
Savings is an asset that's easily converted to usable cash, that's not at risk of losing value.
In contrast, investing has the potential for returns, but also the potential for loss.

What types of accounts would be classified as savings?

This could be dollar bills in a coffee can buried in the backyard, money in the bank, CDs, money market accounts, or life insurance cash value you can access.
The Litmus Test of Savings: Not Losing Value
When we say savings doesn’t lose value, let’s talk about what value means.

There’s two primary types of value: (1) account value, and (2) buying power.
Account Value: Safe vs. Risk
Account value is related to the dollar value of the account.

Say your savings account has $100,000.]]>
Bruce Wehner & Rachel Marshall clean 54:33
How to Pay Less in Taxes Legally, with Dustin Griffiths – TMA 010 https://themoneyadvantage.com/pay-less-taxes-legally-dustin-griffiths/ Mon, 15 Jan 2018 10:00:14 +0000 https://themoneyadvantage.com/?p=1554 “Tax Empowered” vs. “Tax Scared” It’s time to stop tipping the IRS and pay less in taxes legally, from now on. No one likes paying the IRS, but are you letting the government steal from you?  If you aren’t strategic, tax deadlines can feel like doomsday.  You’re stuck with hating that you pay so much in taxes or fearing you’re doing something wrong. But, there’s no need for the word “taxes” to have you tucking your tail and running for the hills. While the IRS is not your friend, the tax code can be.  But it requires you to understand and apply the rules in your favor. If you don't want to pour through and interpret the IRS regulations on your own, you're not alone.  The tax code is a bunch of legalese and linguistic judo. You need someone in your corner who wants you to pay less in taxes, legally. A tax strategist can help you navigate the law with grace and efficiency.  They embrace the tax code as a roadmap for reducing your taxes.  And they're willing to stand up to the IRS on your behalf, helping you leverage the tax code.  This helps you make strategic decisions that keep more dollars in your pocket. Then, taxes seem less like a monster and more like an obstacle course to master. Dustin Griffiths, at Incite Tax and Accounting, is one such tax strategist.  He believes that you are the best person to steward your resources, not the federal government.   Paying Less in Taxes Is Critical to Your Wealth Strategy Maximizing your cash flow and control of resources is one of the top priorities at The Money Advantage. Our expectation with tax planning is to be proactive and aggressively capture as many possible tax dollars that could be used in your own personal economy. Tax decisions aren’t isolated choices in a vacuum.  Every dollar you keep, instead of paying to Uncle Sam, is another dollar you can steward and use productively in your life. Instead of feeling powerless, we want to equip you with the knowledge and education to pay less in taxes legally. Legally Rigging the Tax Game in Your Favor There is a line separating what is legal and what is not.  Often, out fear and lack of understanding the tax code, many other tax professionals stay far away from the line. Dustin and the Incite team confidently walk right up to the line.  If it’s in the tax code, they will use it for your benefit. They aggressively find and apply the tax law to make sure you keep as much of your money as possible, this year and every year going forward.  In this way, they maximize your cash flow now and in the future, helping you keep more money in your control. They view taxes as an integral part of an overall wealth strategy and make it their mission to help you keep and control more of your money. Corporate Rent: One Strategy Most CPAs Miss One of the simple strategies almost all business owners can use, but most people are unaware of, could easily save them $3 - $5K in taxes. Rental income for personal property rented more than 15 days out of the year is taxable as income.  Anything under the 15-day threshold is non-taxable. When you use your personal living space for business use for up to 14 days out of the year, such as for monthly board meetings, the business pays rental income to you.  The business gets a tax-deductible business expense called corporate rent, and the owner gets tax-free income. Clarity on Other Deductions As you go about your business activities, many of your associated expenses can be treated as tax deductions on your business income, saving money and increasing profits. Dustin provides insight and education on how to think through travel expenses, your cell phone, and internet expense, the two options for deducting your vehicle expenses, and health insurance, as a few common business deductions. The Rest of the Conversation on How to Pay Less in Taxes The rest of the conversation was full of tools and ideas that you may find useful in your own business. “Tax Empowered” vs. “Tax Scared” It’s time to stop tipping the IRS and pay less in taxes legally, from now on. - No one likes paying the IRS, but are you letting the government steal from you?  If you aren’t strategic, It’s time to stop tipping the IRS and pay less in taxes legally, from now on.

No one likes paying the IRS, but are you letting the government steal from you?  If you aren’t strategic, tax deadlines can feel like doomsday.  You’re stuck with hating that you pay so much in taxes or fearing you’re doing something wrong.

But, there’s no need for the word “taxes” to have you tucking your tail and running for the hills.

While the IRS is not your friend, the tax code can be.  But it requires you to understand and apply the rules in your favor.

If you don't want to pour through and interpret the IRS regulations on your own, you're not alone.  The tax code is a bunch of legalese and linguistic judo.

You need someone in your corner who wants you to pay less in taxes, legally.

A tax strategist can help you navigate the law with grace and efficiency.  They embrace the tax code as a roadmap for reducing your taxes.  And they're willing to stand up to the IRS on your behalf, helping you leverage the tax code.  This helps you make strategic decisions that keep more dollars in your pocket.

Then, taxes seem less like a monster and more like an obstacle course to master.

Dustin Griffiths, at Incite Tax and Accounting, is one such tax strategist.  He believes that you are the best person to steward your resources, not the federal government.

 


Paying Less in Taxes Is Critical to Your Wealth Strategy
Maximizing your cash flow and control of resources is one of the top priorities at The Money Advantage.

Our expectation with tax planning is to be proactive and aggressively capture as many possible tax dollars that could be used in your own personal economy.

Tax decisions aren’t isolated choices in a vacuum.  Every dollar you keep, instead of paying to Uncle Sam, is another dollar you can steward and use productively in your life.

Instead of feeling powerless, we want to equip you with the knowledge and education to pay less in taxes legally.
Legally Rigging the Tax Game in Your Favor
There is a line separating what is legal and what is not.  Often, out fear and lack of understanding the tax code, many other tax professionals stay far away from the line.

Dustin and the Incite team confidently walk right up to the line.  If it’s in the tax code, they will use it for your benefit.

They aggressively find and apply the tax law to make sure you keep as much of your money as possible, this year and every year going forward.  In this way, they maximize your cash flow now and in the future, helping you keep more money in your control.

They view taxes as an integral part of an overall wealth strategy and make it their mission to help you keep and control more of your money.
Corporate Rent: One Strategy Most CPAs Miss
One of the simple strategies almost all business owners can use, but most people are unaware of, could easily save them $3 - $5K in taxes.

Rental income for personal property rented more than 15 days out of the year is taxable as income.  Anything under the 15-day threshold is non-taxable.

When you use your personal living space for business use for up to 14 days out of the year, such as for monthly board meetings, the business pays rental income to you.  The business gets a tax-deductible business expense called corporate rent, and the owner gets tax-free income.
Clarity on Other Deductions
As you go about your business activities, many of your associated expenses can be treated as tax deductions on your business inc...]]>
Bruce Wehner & Rachel Marshall clean 47:45
Entrepreneurial Lessons from a Top Amazon Seller, with Tyler Douthitt – TMA 009 https://themoneyadvantage.com/entrepreneurial-lessons-top-amazon-seller-tyler-douthitt/ Mon, 08 Jan 2018 17:00:25 +0000 https://themoneyadvantage.com/?p=1186 Along the 12-year journey to becoming a top Amazon seller, Tyler Douthitt has accumulated a wealth of entrepreneurial wisdom.  It takes a considerable amount of grit, resilience, vision, and self-awareness to make it to the top 2%. In this interview, you’ll note: His abundance perspective to create a great life, not only for himself but also for others The importance of being responsive The value of taking the one next step We hope his story, his success, and his lessons will encourage you along your entrepreneurial journey.   Who Tyler Is Now Tyler Douthitt is a top Amazon seller, entrepreneur, lifelong businessman, and investor. He’s building a business as well as a personal brand.  His social media presence has over 10K followers on LinkedIn and Facebook each. He’s just launched a podcast titled the TD Project. He lives in Illinois with his wife and kids and runs his companies from his home office. How Honing a Niche Market Accelerated His Sales as a Top Amazon Seller Because Tyler worked in his parent’s business for 11 years, he gained experience with supply chains, and sourcing and selling products. He began selling earbuds as a result of cause and effect, continual learning and responding to the market. Each time he grew, the customers changed, along with those customer’s needs, and he had to stay responsive to innovate and continue to meet those needs differently. Sales exploded when he connected to the Amazon prime marketplace and moved from fulfilling individual orders to delivering bulk orders to his niche customer: schools. A Customer-Centric Business Model to Deliver More Value Than His Competitors He learned the supply chain in his industry and cut out the middleman, along with his commission. By doing so, he was able to provide better selection, better prices, and quicker delivery. Customized Direct Marketing Strategies Reach His Customer More Effectively Tyler attributes a significant majority of his success to targeted marketing strategies that reached his audience with information they want, where they want to receive it. Tyler noticed so many schools buying earbuds, so he inquired of his brother-in-law, an assistant principal, to determine who has the buying decision for these types of purchases. When he learned that the principal makes these decisions, and the best way to connect was to email them directly, he took action right away. Tyler began emailing school principals with his product and price and explained how his earbuds met their testing requirements. As that evolved, he started going to principal association conferences with his wife, building relationships face-to-face.  He showed how he could satisfy bulk orders at better prices, with more color options. The Greatest Lessons In looking back over what has fostered his success in becoming a top Amazon seller, Tyler says that it’s important to match your work ethic to your ambition. His daily vlog shows the honest side of his life. Having a business is like having a child.  There’s never a day I’m not a parent.  There’s never a day I’m not a business owner. Other Podcast Highlights: [6:45] How Tyler documents his daily routines to give transparency to an entrepreneur’s real life. [8:15] Perspective on balancing business and family life. [10:40] An inside look into the supply chain of buying, shipping, packing, and invoicing the earbuds. [16:20] A healthy perspective on sharing your business model and strategies that are not “teaching your competition.” [18:10] Hear the live result of an abundance mindset, and how it opened doors to exchange value with others. [18:55] How a top seller in a technologically-related industry continues to innovate into the future. [23:00] The difference between business owners and entrepreneurs. [24:00] Building entrepreneurial success that’s better than retirement. [27:50] The way to scale your business starts with ser... Along the 12-year journey to becoming a top Amazon seller, Tyler Douthitt has accumulated a wealth of entrepreneurial wisdom.  It takes a considerable amount of grit, resilience, vision, and self-awareness to make it to the top 2%. - Along the 12-year journey to becoming a top Amazon seller, Tyler Douthitt has accumulated a wealth of entrepreneurial wisdom.  It takes a considerable amount of grit, resilience, vision, and self-awareness to make it to the top 2%.

In this interview, you’ll note:

* His abundance perspective to create a great life, not only for himself but also for others
* The importance of being responsive
* The value of taking the one next step

We hope his story, his success, and his lessons will encourage you along your entrepreneurial journey.

 


Who Tyler Is Now
Tyler Douthitt is a top Amazon seller, entrepreneur, lifelong businessman, and investor.

He’s building a business as well as a personal brand.  His social media presence has over 10K followers on LinkedIn and Facebook each.

He’s just launched a podcast titled the TD Project.

He lives in Illinois with his wife and kids and runs his companies from his home office.
How Honing a Niche Market Accelerated His Sales as a Top Amazon Seller
Because Tyler worked in his parent’s business for 11 years, he gained experience with supply chains, and sourcing and selling products.

He began selling earbuds as a result of cause and effect, continual learning and responding to the market.

Each time he grew, the customers changed, along with those customer’s needs, and he had to stay responsive to innovate and continue to meet those needs differently.

Sales exploded when he connected to the Amazon prime marketplace and moved from fulfilling individual orders to delivering bulk orders to his niche customer: schools.
A Customer-Centric Business Model to Deliver More Value Than His Competitors
He learned the supply chain in his industry and cut out the middleman, along with his commission.

By doing so, he was able to provide better selection, better prices, and quicker delivery.
Customized Direct Marketing Strategies Reach His Customer More Effectively
Tyler attributes a significant majority of his success to targeted marketing strategies that reached his audience with information they want, where they want to receive it.

Tyler noticed so many schools buying earbuds, so he inquired of his brother-in-law, an assistant principal, to determine who has the buying decision for these types of purchases.

When he learned that the principal makes these decisions, and the best way to connect was to email them directly, he took action right away.

Tyler began emailing school principals with his product and price and explained how his earbuds met their testing requirements.

As that evolved, he started going to principal association conferences with his wife, building relationships face-to-face.  He showed how he could satisfy bulk orders at better prices, with more color options.
The Greatest Lessons
In looking back over what has fostered his success in becoming a top Amazon seller, Tyler says that it’s important to match your work ethic to your ambition.

His daily vlog shows the honest side of his life.
Having a business is like having a child.  There’s never a day I’m not a parent.  There’s never a day I’m not a business owner.
Other Podcast Highlights:

* [6:45] How Tyler documents his daily routines to give transparency to an entrepreneur’s real life.
* [8:15] Perspective on balancing business and family life.
* [10:40] An inside look into the supply chain of buying, shipping,]]>
Bruce Wehner & Rachel Marshall clean 47:51
What is Prosperity Economics? Part 2 – TMA 008 https://themoneyadvantage.com/financial-planning-what-is-prosperity-economics-part-2/ Mon, 01 Jan 2018 17:00:27 +0000 https://themoneyadvantage.com/?p=1183 Typical Financial Planning vs. Prosperity Economics The Prosperity Economics Movement is a wholesome and positive remedy to the limitations, guesses, and fear-based typical financial planning. On the one hand, the typical financial conversation holds an underlying opinion that you should give your money to someone else more qualified than you, put it aside for the future, not touch it or use it now, and hope things work out. On the other hand, the abundance-centric, value-creating, opportunity-seeking perspective of Prosperity Economics puts money in your hands today.  It validates that you’re the best person to be in control.  Prosperity Economics relentlessly steers towards financial freedom by prioritizing cash flow over accumulation. Refreshingly, it empowers you, the individual, with maximum control and certainty. The prosperity perspective is a departure from the status quo of today and a return to the traditional way of thinking about and handling money.  Similar to how people built wealth before the 1980’s, it encourages you to rely on your own business and put money in tools you know and control like savings accounts, whole life insurance policies, cash-flowing investments, and precious metals.   How’s Your Thinking? Whether or not you’ve ever considered your way of thinking about money, you owe it to yourself to pause for a moment of reflection.  Have you fostered your awareness of what you are allowing to influence your financial beliefs and perspectives? We aim to help you develop clarity on your financial foundations and philosophy. If your current mindset is not helping you create your ideal life, we give you the permission to think differently. This article, in conjunction with Part 1, provides the basis for understanding the principles and beliefs guiding the typical money conversation and those behind the prosperity conversation. In Part 1 In What Is Prosperity Economics? – Part 1, we Dissected the false assumptions that are the foundation of typical financial planning Illuminated why financial planning has failed Outlined the four fundamental differences between the typical and the time-tested traditional financial paradigms Discussed the first eight of the twelve comparisons between financial planning and Prosperity Economics: Meeting needs and goals only vs. pursuing wants and dreams Minimizing requirements vs. optimizing opportunities Product-oriented vs. strategy-oriented Rate-of-return emphasis vs. focus on recovering opportunity cost Institutions control your money vs. you control your money Focus on your portfolio vs. focus on your whole personal economy Net worth measurement vs. cash flow measurement Retirement focus vs. freedom oriented In Part 2 In today’s article, we’ll highlight the last four of the twelve differentiators. 1) Living Only on Interest vs. Spending and Replacing Principal With the typical financial conversation, the ambition is to build a nest egg large enough to live on interest in retirement without depleting the principal. You used to be able to withdraw 5%, and the growth of your account would keep up with that, so you didn’t shrink your nest egg. In today’s environment, the going distribution rate is about 2.8%.  That means that if you take distributions higher than 2.8%, you’re likely to be taking out more than your account growth and shrinking your nest egg. The remedy would be to either accumulate a nest egg double in size or feel comfortable living on half the income during retirement. Because many of the assumptions beneath the financial equations are outside your control, you may end up with a plan that gives you, say, a 93% chance of still having money left at age 86. How’s that for confidence? What if you lived longer? Most people I know would rather have a 100% chance of success that gives them the confidence that their long life won’t become a liability. Typical Financial Planning vs. Prosperity Economics The Prosperity Economics Movement is a wholesome and positive remedy to the limitations, guesses, and fear-based typical financial planning. - On the one hand, The Prosperity Economics Movement is a wholesome and positive remedy to the limitations, guesses, and fear-based typical financial planning.

On the one hand, the typical financial conversation holds an underlying opinion that you should give your money to someone else more qualified than you, put it aside for the future, not touch it or use it now, and hope things work out.

On the other hand, the abundance-centric, value-creating, opportunity-seeking perspective of Prosperity Economics puts money in your hands today.  It validates that you’re the best person to be in control.  Prosperity Economics relentlessly steers towards financial freedom by prioritizing cash flow over accumulation.

Refreshingly, it empowers you, the individual, with maximum control and certainty.

The prosperity perspective is a departure from the status quo of today and a return to the traditional way of thinking about and handling money.  Similar to how people built wealth before the 1980’s, it encourages you to rely on your own business and put money in tools you know and control like savings accounts, whole life insurance policies, cash-flowing investments, and precious metals.

 


How’s Your Thinking?
Whether or not you’ve ever considered your way of thinking about money, you owe it to yourself to pause for a moment of reflection.  Have you fostered your awareness of what you are allowing to influence your financial beliefs and perspectives?

We aim to help you develop clarity on your financial foundations and philosophy.

If your current mindset is not helping you create your ideal life, we give you the permission to think differently.

This article, in conjunction with Part 1, provides the basis for understanding the principles and beliefs guiding the typical money conversation and those behind the prosperity conversation.
In Part 1
In What Is Prosperity Economics? – Part 1, we

* Dissected the false assumptions that are the foundation of typical financial planning
* Illuminated why financial planning has failed
* Outlined the four fundamental differences between the typical and the time-tested traditional financial paradigms
* Discussed the first eight of the twelve comparisons between financial planning and Prosperity Economics:

* Meeting needs and goals only vs. pursuing wants and dreams
* Minimizing requirements vs. optimizing opportunities
* Product-oriented vs. strategy-oriented
* Rate-of-return emphasis vs. focus on recovering opportunity cost
* Institutions control your money vs. you control your money
* Focus on your portfolio vs. focus on your whole personal economy
* Net worth measurement vs. cash flow measurement
* Retirement focus vs. freedom oriented



In Part 2
In today’s article, we’ll highlight the last four of the twelve differentiators.
1) Living Only on Interest vs. Spending and Replacing Principal
With the typical financial conversation, the ambition is to build a nest egg large enough to live on ...]]>
Bruce Wehner & Rachel Marshall clean 38:23
Maximizing Your Business Tax Deductions in 2018, with Mark Schreiber – TMA 007 https://themoneyadvantage.com/maximizing-business-tax-deductions-mark-schreiber/ Mon, 25 Dec 2017 17:00:39 +0000 https://themoneyadvantage.com/?p=1432 Do you know if you’re maximizing your business tax deductions?  If the thought of the new year brings you tax anxiety, you’re not alone. Many business owners fear tax season and the “day of reckoning” when they find out how much they owe to Uncle Sam. No one likes to part with hard-earned dollars or wonder whether they may have overpaid. To make matters worse, taxes seem like an endless maze of confusion.  Blindly trusting a professional and hoping they’re doing everything in your best interest is a sure-fire way to feel disempowered and out of control. In our work with business owners, one question rises to the forefront of all financial strategy – how do I pay less in taxes? Overpaying taxes is one of the most impactful money leaks we see for business owners because their money is flowing out of their control. Instead, we’re leaning into that dysphoria. We believe that education empowers you with the confidence to take action and make better decisions.   Plan for Your Best Tax Year Yet 2018 is a brand-new year. Instead of taxes being something that makes you cringe, we want to empower you with a mindset, tips, knowledge, and strategy to help you keep more of your money by leveraging the tax code and maximizing your tax deductions. In this interview with Mark Schreiber, CPA and Tax Strategist with e3 Wealth, we discuss the best way to start 2018 prepared to make it your best year for tax savings. Mark’s Background Mark has worked in public accounting for 35 years. In his work with small businesses and entrepreneurs, he focuses on doing taxes, tax planning, and estate tax planning.  He’s been with one of the “large eight” CPA firms and joined e3 2 years ago. Interview Highlights: A lot of Tax Planning is Reactive: At the end of the year, you hand over your books, your CPA crunches the numbers and gives you a tax return.  It’s not often proactive, forward-looking tax planning that takes into consideration your specific business and plans with an objective to minimize taxes this year and every year going forward. Tax Deferrals, Deductions, and Credits: Tax deferrals reduce taxable income this year by postponing a portion of income to pay tax in the future instead.  On the other hand, tax deductions reduce taxable income this year, and never come back to be taxed again.  Tax credits shrink your tax bill dollar-for-dollar. How to Save 15.3% on Your Taxes With 1 Strategy: Many self-employed people are Sole Proprietors.  They file a Schedule C and pay ordinary tax, PLUS 7.65% for the employee portion of FICA and Medicare, PLUS another 7.65% for the employer portion of FICA and Medicare.  This additional 15.3% is referred to as the self-employment tax, and business owners pay it on top of regular income tax.   A business entity taxed as an S Corp has a way to minimize the self-employment tax.  After paying a reasonable salary to the business owner at the full self-employment tax rate, the business can distribute the rest of the income to the business owner as Distributions, on the Schedule K1.  The K1 bypasses the 15.3% rate, shrinking your total taxes owed. Additional Business Tax Deductions Discussed: Business expenses reduce your taxable income. There’s great variation in how business expenses are classified and accounted for. There are many business tax deductions that business owners could take but don’t.  Here are just a few: Home office deduction Vehicle or mileage expense deduction Cell phone Internet Meals and entertainment Travel Self-employed Health Insurance Deduction Hiring your kids Depreciation Cost segregation study for any owner of real estate Charitable contributions through deconstruction or easements Highlights in the pending tax reform To Take the Next Step If you have questions about your taxes or the business tax deductions you can leverage, Do you know if you’re maximizing your business tax deductions?  If the thought of the new year brings you tax anxiety, you’re not alone. - Many business owners fear tax season and the “day of reckoning” when they find out how much they owe to Uncle Sa...
Many business owners fear tax season and the “day of reckoning” when they find out how much they owe to Uncle Sam.

No one likes to part with hard-earned dollars or wonder whether they may have overpaid.

To make matters worse, taxes seem like an endless maze of confusion.  Blindly trusting a professional and hoping they’re doing everything in your best interest is a sure-fire way to feel disempowered and out of control.

In our work with business owners, one question rises to the forefront of all financial strategy – how do I pay less in taxes?

Overpaying taxes is one of the most impactful money leaks we see for business owners because their money is flowing out of their control.

Instead, we’re leaning into that dysphoria.

We believe that education empowers you with the confidence to take action and make better decisions.

 


Plan for Your Best Tax Year Yet
2018 is a brand-new year.

Instead of taxes being something that makes you cringe, we want to empower you with a mindset, tips, knowledge, and strategy to help you keep more of your money by leveraging the tax code and maximizing your tax deductions.

In this interview with Mark Schreiber, CPA and Tax Strategist with e3 Wealth, we discuss the best way to start 2018 prepared to make it your best year for tax savings.
Mark’s Background
Mark has worked in public accounting for 35 years.

In his work with small businesses and entrepreneurs, he focuses on doing taxes, tax planning, and estate tax planning.  He’s been with one of the “large eight” CPA firms and joined e3 2 years ago.
Interview Highlights:

* A lot of Tax Planning is Reactive:

* At the end of the year, you hand over your books, your CPA crunches the numbers and gives you a tax return.  It’s not often proactive, forward-looking tax planning that takes into consideration your specific business and plans with an objective to minimize taxes this year and every year going forward.




* Tax Deferrals, Deductions, and Credits:

* Tax deferrals reduce taxable income this year by postponing a portion of income to pay tax in the future instead.  On the other hand, tax deductions reduce taxable income this year, and never come back to be taxed again.  Tax credits shrink your tax bill dollar-for-dollar.




* How to Save 15.3% on Your Taxes With 1 Strategy:

* Many self-employed people are Sole Proprietors.  They file a Schedule C and pay ordinary tax, PLUS 7.65% for the employee portion of FICA and Medicare, PLUS another 7.65% for the employer portion of FICA and Medicare.  This additional 15.3% is referred to as the self-employment tax, and business owners pay it on top of regular income tax.   A business entity taxed as an S Corp has a way to minimize the self-employment tax.  After paying a reasonable salary to the business owner at the full self-employment tax rate, the business can distribute the rest of the income to the business owner as Distributions, on the Schedule K1.  The K1 bypasses the 15.3% rate, shrinking your total taxes owed.



Additional Business Tax Deductions Discussed:

* Business expenses reduce your taxable income. There’s great variation in how business expenses are classified and accounted for. There are many business tax deductions that business owners could take but don’t.  Here are just a few:

]]>
Bruce Wehner & Rachel Marshall clean 42:24
What is Prosperity Economics? Part 1 – TMA 006 https://themoneyadvantage.com/what-is-prosperity-economics-part-1/ Mon, 18 Dec 2017 04:01:50 +0000 https://themoneyadvantage.com/?p=1181 Prosperity Economics has begun its renaissance as an alternative to typical financial planning.  An increasing number of courageous, conscious, independent thinkers have outgrown typical financial planning. They resonate with a different financial philosophy that provides more control, certainty, and permission to use their money now. For them, the financial status quo has been losing its luster. Its unfulfilled promises and failure to produce economic security have grown increasingly apparent.     Typical Financial Planning Is Planning to Fail All around, you notice people who have socked away money in retirement plans who are unable to retire.  They’re working longer because they have to, giving up on the lifestyle they’d hoped for, or fearing running out of money. You’re told it’s their fault because they haven’t saved enough. But even the most diligent and disciplined savers have had wealth indiscriminately erased by the fickle tide of the market. It seems impossible to get ahead, much less to win the financial game. The incongruences are shocking.  Many tried to ignore it, but you couldn't.  No matter what you do, it seems like you’re swimming against the tide in a system that’s rigged against you. If you put less away for the future, you end up not having enough in the future. If you put more away for the future, you end up more worried about losing what you’ve built because of uncertainty and the risk of loss. Unsettled About Unanswered Questions You have many looming questions about what you've heard from the media, Wall Street, and the financial planning industry. You’re not content with feeling out of control.  You don't like closing your eyes and hanging on for the ride, hoping for the best.  You want guarantees and certainty that put you in the driver's seat of your life and destiny. Isn't that why you started a business in the first place?  To create your future and take the bull by the horns?  The Unstable Premises of Typical Financial Planning, Demystified There’s valid reason for you to feel unsettled.  Your hunch about the status quo is right: it is failing the American population. The underlying assumptions of typical financial planning don’t fit your worldview or your life goals. Here’s why: Typical Assumption #1: You desire to feel great about your money means you want a plan for retirement. Typical financial advice today is usually synonymous with retirement planning.  Its aim is to plan for your future.  Planning for the most robust present isn’t within its scope. Typical Assumption #2: You can create a plan that will work, based on guesses about the future. The starting point of the conversation is: When do you want to retire? How much can you save or invest? How long do you expect to live? What do you expect inflation to be over time? What is your risk tolerance? How much money do you need in retirement? No one can legitimately know the answers to these questions. Instead of looking dumb, we make guesses that are nowhere near concrete answers.  They then become the foundation and framework of your financial plan. Typical Assumption #3: You have to take on risk to earn higher returns. We shrug off the discomfort with taking risk.  After all, we don’t want to lose any money.  We try to reassure ourselves that, just as we’ve been told, we have to take high risk to get high returns. What other areas of life would you take high risks?  If you took high risk with your significant relationships or your health, would you expect a positive outcome? Typical Assumption #4: You hate your job, and want to retire. It’s assumed that we work a job that drains us, and escaping the necessary evil of work is the peak of bliss and satisfaction. Typical Assumption #5: You are not smart enough to handle your own money. It’s assumed that you are not capable of making decisions with good financial sense and that growing wealth is a... Prosperity Economics has begun its renaissance as an alternative to typical financial planning.  An increasing number of courageous, conscious, independent thinkers have outgrown typical financial planning. -

Prosperity Economics has begun its renaissance as an alternative to typical financial planning.  An increasing number of courageous, conscious, independent thinkers have outgrown typical financial planning.

They resonate with a different financial philosophy that provides more control, certainty, and permission to use their money now.

For them, the financial status quo has been losing its luster.

Its unfulfilled promises and failure to produce economic security have grown increasingly apparent.

 



 
Typical Financial Planning Is Planning to Fail
All around, you notice people who have socked away money in retirement plans who are unable to retire.  They’re working longer because they have to, giving up on the lifestyle they’d hoped for, or fearing running out of money.

You’re told it’s their fault because they haven’t saved enough.

But even the most diligent and disciplined savers have had wealth indiscriminately erased by the fickle tide of the market.

It seems impossible to get ahead, much less to win the financial game.

The incongruences are shocking.  Many tried to ignore it, but you couldn't.  No matter what you do, it seems like you’re swimming against the tide in a system that’s rigged against you.

If you put less away for the future, you end up not having enough in the future.

If you put more away for the future, you end up more worried about losing what you’ve built because of uncertainty and the risk of loss.
Unsettled About Unanswered Questions
You have many looming questions about what you've heard from the media, Wall Street, and the financial planning industry.

You’re not content with feeling out of control.  You don't like closing your eyes and hanging on for the ride, hoping for the best.  You want guarantees and certainty that put you in the driver's seat of your life and destiny.

Isn't that why you started a business in the first place?  To create your future and take the bull by the horns? 
The Unstable Premises of Typical Financial Planning, Demystified
There’s valid reason for you to feel unsettled.  Your hunch about the status quo is right: it is failing the American population.

The underlying assumptions of typical financial planning don’t fit your worldview or your life goals.

Here’s why:
Typical Assumption #1: You desire to feel great about your money means you want a plan for retirement.
Typical financial advice today is usually synonymous with retirement planning.  Its aim is to plan for your future.  Planning for the most robust present isn’t within its scope.
Typical Assumption #2: You can create a plan that will work, based on guesses about the future.
The starting point of the conversation is:

* When do you want to retire?
* How much can you save or invest?
* How long do you expect to live?
* What do you expect inflation to be over time?
* What is your risk tolerance?
* How much money do you need in retirement?

No one can legitimately know the answers to these questions.

Instead of looking dumb, we make guesses that are nowhere near concrete answers.  They then become the foundation and framework of your financial plan.
Typical Assumption #3: You have to take on risk to earn higher returns.
We shrug off the discomfort with taking risk.  After all, we don’t want to lose any money.  We try to reassure ourselves that,]]>
Bruce Wehner & Rachel Marshall clean 57:07
Infinite Banking: Increasing Capital and Cashflow, with Dr. Robert P. Murphy – TMA 005 https://themoneyadvantage.com/infinite-banking-cashflow-robert-murphy/ Mon, 11 Dec 2017 17:00:51 +0000 https://themoneyadvantage.com/?p=1179  Infinite Banking is the perfect savings system for entrepreneurs.  It allows you to emulate the most powerful business model in the world: The Bank! Bob Murphy discusses out-of-the-box strategies that complement the entrepreneur.  He is an economist in an unconventional wrapper. His sense of humor and straight-talk help him convey the most perplexing concepts with elegance and simplicity we can all understand. He’s a free market thinker with the courage to be contrarian. He goes against the grain of the financial and economic status quo that marginalizes entrepreneurs and disregards their primary needs.  Instead, he salutes the nobility of entrepreneurship.  He gives clear-cut guidance on how to fortify their financial footing with cash flow and control of capital.     Credentials That Have Earned Him Wide Respect   Robert P. Murphy is a Research Assistant Professor with the Free Market Institute at Texas Tech University. Along with Tom Woods, he is co-host of the popular podcast “Contra Krugman.” Murphy has a Ph.D. in economics from New York University. He is also Senior Economist with the Institute for Energy Research, Senior Fellow with the Fraser Institute, Senior Fellow at the Mises Institute, and Research Fellow with the Independent Institute. He’s a prolific author and speaker on Austrian economics. Murphy has testified before Congress on energy markets and monetary policy and has given numerous interviews on TV and radio. He is the author of hundreds of articles and several books on economic topics created for the layperson. He publishes (with Carlos Lara) the Lara-Murphy Report, and is co-creator of the IBC Practitioner Program. He’s a member of the board at the Nelson Nash Institute. His works have been published in: The Austrian Mises Daily Article The Journal of Libertarian Studies Quarterly Journal of Austrian Economics Mises Review The Free Market Review of Austrian Economics Speeches and Presentations The Interview Highlights The Human Element That Makes Economics Unpredictable Bob makes economics simple and relevant to everyday people making everyday life decisions. While mainstream economics is often confusing, he gives people the tools to understand the world around them and make decisions. Bob starts by casting off a general assumption that economics is fundamentally math.  He brings the human element front and center, writing in his book, Lessons for the Young Economist. “Economics always involves the operation of at least one mind, intelligence that has conscious goals and takes steps to influence the material world in order to achieve those goals.” ~ Bob Murphy Economics has individual actors that you can’t put into a mathematical model.  They aren’t going to consistently do the same thing, like in a science lab.  He says: “Economists face two huge problems: the objects of their study have minds of their own, and it’s much harder to perform a controlled experiment in economics than it is in natural science.” ~ Bob Murphy If you attempt to treat the social sciences like the physical sciences, it gives a false concept of precision.  People are much more complicated than atoms and molecules. Real-world economics has to account for an unknown future, and best equip us to flourish in any environment. Austrian Economics Celebrates the Entrepreneur Entrepreneurs, of all people, have an unquenchable thirst to control their future.  They, also more than most, recognize that the world is continually evolving, and value keeping themselves agile to innovate and improve continuously. Because of this, they value making decisions today that expand their options tomorrow. They build businesses by continually honing their perspective, their understanding of the problems, and their skillset to solve it. Entrepreneurs long for environments that support and celebrate their creative spirit.  Infinite Banking is the perfect savings system for entrepreneurs.  It allows you to emulate the most powerful business model in the world: The Bank! - Bob Murphy discusses out-of-the-box strategies that complement the entrepreneur. Infinite Banking is the perfect savings system for entrepreneurs.  It allows you to emulate the most powerful business model in the world: The Bank!

Bob Murphy discusses out-of-the-box strategies that complement the entrepreneur.  He is an economist in an unconventional wrapper. His sense of humor and straight-talk help him convey the most perplexing concepts with elegance and simplicity we can all understand. He’s a free market thinker with the courage to be contrarian.

He goes against the grain of the financial and economic status quo that marginalizes entrepreneurs and disregards their primary needs.  Instead, he salutes the nobility of entrepreneurship.  He gives clear-cut guidance on how to fortify their financial footing with cash flow and control of capital.

 



 
Credentials That Have Earned Him Wide Respect  
Robert P. Murphy is a Research Assistant Professor with the Free Market Institute at Texas Tech University. Along with Tom Woods, he is co-host of the popular podcast “Contra Krugman.”

Murphy has a Ph.D. in economics from New York University. He is also Senior Economist with the Institute for Energy Research, Senior Fellow with the Fraser Institute, Senior Fellow at the Mises Institute, and Research Fellow with the Independent Institute.

He’s a prolific author and speaker on Austrian economics.

Murphy has testified before Congress on energy markets and monetary policy and has given numerous interviews on TV and radio. He is the author of hundreds of articles and several books on economic topics created for the layperson.

He publishes (with Carlos Lara) the Lara-Murphy Report, and is co-creator of the IBC Practitioner Program.

He’s a member of the board at the Nelson Nash Institute.

His works have been published in:

* The Austrian
* Mises Daily Article
* The Journal of Libertarian Studies
* Quarterly Journal of Austrian Economics
* Mises Review
* The Free Market
* Review of Austrian Economics
* Speeches and Presentations

The Interview Highlights
The Human Element That Makes Economics Unpredictable
Bob makes economics simple and relevant to everyday people making everyday life decisions.

While mainstream economics is often confusing, he gives people the tools to understand the world around them and make decisions.

Bob starts by casting off a general assumption that economics is fundamentally math.  He brings the human element front and center, writing in his book, Lessons for the Young Economist.
“Economics always involves the operation of at least one mind, intelligence that has conscious goals and takes steps to influence the material world in order to achieve those goals.” ~ Bob Murphy
Economics has individual actors that you can’t put into a mathematical model.  They aren’t going to consistently do the same thing, like in a science lab.  He says:
“Economists face two huge problems: the objects of their study have minds of their own, and it’s much harder to perform a controlled experiment in economics than it is in natural science.” ~ Bob Murphy
If you attempt to treat the social sciences like the physical sciences, it gives a false concept of precision.  People are much more complicated than atoms and molecules.]]>
Bruce Wehner & Rachel Marshall clean 51:30
Abundance: Philosophy, Principles and Beliefs – TMA 004 https://themoneyadvantage.com/abundance-philosophy-principles-beliefs/ Tue, 05 Dec 2017 03:52:06 +0000 https://themoneyadvantage.com/?p=1043 Your financial life should have come with the instructions: "For best results, abundance thinking required!"  Your financial results are a direct product of your way of thinking about money.  While it's tempting to jump right into strategies and products and investments, you'll never outperform your mindset.  You are your greatest investment, therefore exponential results are created by an abundance mindset. In the famous Indian fable of the Blind Men and the Elephant, six blind men described an elephant from their perspective.  One said it was like a rope, and another said the elephant was like a tree.  A third said it was like a spear.  The fourth, a snake.  The fifth, a fan.  And finally, the sixth man said it was like a wall. Each man had touched a different part of the elephant, and his experience shaped his understanding. Their limited thinking is evident to us.  But all too often, we, just like each blind man, are unaware of our own finite mindset. Our mindset is intangible and tucked away out of sight, so it’s easy to think it doesn’t require your attention. You can be unaware of it, ignore it, pretend it’s something different, or choose it. Regardless of your level of consciousness around your mindset and beliefs, your mental programming is driving your life.   How We Learn If you want different results than you see today, it’s not enough to change your actions.  You need to expand your mindset. In the elephant story, each man was beholden to his perspective.  They each believed that their own experience was the full interpretation, and it led them to severe errors of judgment.  Not one was willing to learn from each other to broaden his understanding. When it comes to our understanding of the world, we’re each like the blind men. Of all of the available facts in the world, each of us knows some of them.  None of us know them all.  The limited set of facts we have and our interpretation of them form our unique map.  Of the 7 billion people in the world, all of them have a map, and none of them look like yours. This is your belief system.  Unless you're willing to expand your map, nothing new exists for you. When we come into a conversation with people who see differently, it's important to recognize that if we both had the same map, we'd think the same way. When we each defend our own interpretation of the facts, it leads to conflict. The only way you can learn something new is to be willing to step off of your map and onto someone else's. It's not about who's right, but about learning what else is possible. We Don’t Know Everything Here at The Money Advantage, we don't claim to be all-knowing gurus with all the answers. In our life and work, we've seen a specific way of thinking about money that produces the healthiest, most vibrant lives. We'd like to invite you into our understanding about money. What We Do Know is This Let's have a candid discussion about the foundational principles and beliefs that lead to a life of abundance and prosperity. We’re laying a foundation of prosperous thinking in your money decisions to empower you to live prosperously. We want to turn the tide of frustration, misinformation, and disillusionment that causes many people to feel that the best they can expect is to close their eyes, grit their teeth, hang on for the ride and hope everything works out.  Having no control and no certainty for the future is debilitating. It’s even more tragic that many believe that’s all the better it can get. Since money is so central to our well-being in every other area of our life, we owe it to ourselves to get this right. Your mindset determines not only how you see something, but whether you see it at all, and what you choose to do about it. Scarcity: Limiting Beliefs and Where They Come From Scarcity is a world with limits driven by fear, doubt, greed, and worry.  It's the belief system that wealth is the result of ... Your financial life should have come with the instructions: "For best results, abundance thinking required!"  Your financial results are a direct product of your way of thinking about money.  While it's tempting to jump right into strategies and produc...


In the famous Indian fable of the Blind Men and the Elephant, six blind men described an elephant from their perspective.  One said it was like a rope, and another said the elephant was like a tree.  A third said it was like a spear.  The fourth, a snake.  The fifth, a fan.  And finally, the sixth man said it was like a wall.

Each man had touched a different part of the elephant, and his experience shaped his understanding.

Their limited thinking is evident to us.  But all too often, we, just like each blind man, are unaware of our own finite mindset.

Our mindset is intangible and tucked away out of sight, so it’s easy to think it doesn’t require your attention.

You can be unaware of it, ignore it, pretend it’s something different, or choose it.

Regardless of your level of consciousness around your mindset and beliefs, your mental programming is driving your life.

 


How We Learn
If you want different results than you see today, it’s not enough to change your actions.  You need to expand your mindset.

In the elephant story, each man was beholden to his perspective.  They each believed that their own experience was the full interpretation, and it led them to severe errors of judgment.  Not one was willing to learn from each other to broaden his understanding.

When it comes to our understanding of the world, we’re each like the blind men.

Of all of the available facts in the world, each of us knows some of them.  None of us know them all.  The limited set of facts we have and our interpretation of them form our unique map.  Of the 7 billion people in the world, all of them have a map, and none of them look like yours.

This is your belief system.  Unless you're willing to expand your map, nothing new exists for you.

When we come into a conversation with people who see differently, it's important to recognize that if we both had the same map, we'd think the same way.

When we each defend our own interpretation of the facts, it leads to conflict.

The only way you can learn something new is to be willing to step off of your map and onto someone else's.

It's not about who's right, but about learning what else is possible.
We Don’t Know Everything
Here at The Money Advantage, we don't claim to be all-knowing gurus with all the answers.

In our life and work, we've seen a specific way of thinking about money that produces the healthiest, most vibrant lives.

We'd like to invite you into our understanding about money.
What We Do Know is This
Let's have a candid discussion about the foundational principles and beliefs that lead to a life of abundance and prosperity.

We’re laying a foundation of prosperous thinking in your money decisions to empower you to live prosperously.

We want to turn the tide of frustration, misinformation, and disillusionment that causes many people to feel that the best they can expect is to close their eyes, grit their teeth, hang on for the ride and hope everything works out.  Having no control and no certainty for the future is debilitating.

It’s even more tragic that many believe that’s all the bett...]]>
Bruce Wehner & Rachel Marshall clean 50:15
Just Take Action – TMA 003 https://themoneyadvantage.com/just-take-action/ Thu, 09 Nov 2017 04:59:05 +0000 https://themoneyadvantage.com/?p=994 With naivety that makes me laugh now, after having my first child, I thought I'd have so much free time, why not start a business? As much courage as it takes to tell one’s story, it’s also tremendously freeing and empowering. I heard it said that the most important gift we can give is our story.  Every story we hear is a gift because we find ourselves in each other’s stories.  We receive the gift of permission to live out our own story bravely, own it, and share it. I’ll share how I became a cash flow coach, how it’s a part of my family, why I keep going, and why I want to keep growing for my entire life.  More importantly, I’ll tell you about the mindset breakthroughs along the way. I’ll tell you about the ugly mistakes I made during the process.  I hope to encourage you not to give up.  I hope to show you that there are lessons on the other side that are worth every gut-wrenching tear. And I’ll show you how consistently taking action, no matter how imperfect, has been the secret to growth, confidence, and progress. I hope to give you the permission to think differently and grow along with like-minded entrepreneurs.     In case you missed it, in the prior episodes, we covered How The Money Advantage Began, and my co-host Bruce's backstory in The Mindset Shift. My Core Strengths Illuminated By an Eclectic History I grew up the oldest of 4 on a farm in Minnesota. Everything I did was with my whole heart, with a grand, epic meaning. I was involved in 4-H throughout grade school. At 12 years old, on one of my project folders I defined 4-H: … a window into greater levels of knowledge, determination, personal development, perseverance and effort which involves making friends, learning new skills, and having fun. I rode horses and competed at the state level in barrel racing.  This taught me alot about dedication, hard work, and being coachable. At 17, I moved 1,300 miles away from home to join a ministry training program.  We traveled across the nation, leading youth conferences. I joined the administrative staff of my church and led a team of 90 volunteers, and learned that I loved inspiring people to work together.  Through writing training curriculum, I developed the ability to teach. After I married Lucas in 2006, I finished out a bachelor’s degree in psychology and business.  I was drawn to marriage and family therapy.  In college, I discovered my aptitude for accounting and was offered a paid scholarship to make it my major.  I turned it down, thinking I wouldn’t be interested in “crunching numbers.” Out of college, I landed a career in business and human resource management.  Training and development was my strength, and I thrived in building relationships that drew out the potential of others and inspiring teamwork.  I learned that leadership and influence didn’t have to come from a company title or a supervisory position. The Intrigue of Entrepreneurship I can point back to an eighth-grade introduction to Robert Kiyosaki’s Rich Dad Poor Dad, and the Cashflow Game, as the first seed of entrepreneurship in my life. I wanted to understand investing and business ownership that made money and created financial freedom. The desire lay dormant for several years and resurfaced when Lucas and I were dating. We’d have long conversations about what we wanted to do in the future.  We weighed and researched many options, from starting a computer services company, to a coffeehouse, to buying a franchise like a Subway or a cleaning company. At the time, we didn’t know much about our unique abilities or how to best use our strengths.  Our main motivation was to build a business that would help us personally create cash flow and financial freedom. The Silly Idea That Got Us Started Five years after we were married, we welcomed our daughter into the world.  Overnight, I went from full-time employee to full-time stay-at-home mom. With naivety that makes me laugh now, after having my first child, I thought I'd have so much free time, why not start a business? - As much courage as it takes to tell one’s story, it’s also tremendously freeing and empowering. -
As much courage as it takes to tell one’s story, it’s also tremendously freeing and empowering.



I heard it said that the most important gift we can give is our story.  Every story we hear is a gift because we find ourselves in each other’s stories.  We receive the gift of permission to live out our own story bravely, own it, and share it.

I’ll share how I became a cash flow coach, how it’s a part of my family, why I keep going, and why I want to keep growing for my entire life.  More importantly, I’ll tell you about the mindset breakthroughs along the way.

I’ll tell you about the ugly mistakes I made during the process.  I hope to encourage you not to give up.  I hope to show you that there are lessons on the other side that are worth every gut-wrenching tear.

And I’ll show you how consistently taking action, no matter how imperfect, has been the secret to growth, confidence, and progress.

I hope to give you the permission to think differently and grow along with like-minded entrepreneurs.

 



 

In case you missed it, in the prior episodes, we covered How The Money Advantage Began, and my co-host Bruce's backstory in The Mindset Shift.
My Core Strengths Illuminated By an Eclectic History
I grew up the oldest of 4 on a farm in Minnesota.

Everything I did was with my whole heart, with a grand, epic meaning.

I was involved in 4-H throughout grade school. At 12 years old, on one of my project folders I defined 4-H:
… a window into greater levels of knowledge, determination, personal development, perseverance and effort which involves making friends, learning new skills, and having fun.
I rode horses and competed at the state level in barrel racing.  This taught me alot about dedication, hard work, and being coachable.

At 17, I moved 1,300 miles away from home to join a ministry training program.  We traveled across the nation, leading youth conferences.

I joined the administrative staff of my church and led a team of 90 volunteers, and learned that I loved inspiring people to work together.  Through writing training curriculum, I developed the ability to teach.

After I married Lucas in 2006, I finished out a bachelor’s degree in psychology and business.  I was drawn to marriage and family therapy.  In college, I discovered my aptitude for accounting and was offered a paid scholarship to make it my major.  I turned it down, thinking I wouldn’t be interested in “crunching numbers.”

Out of college, I landed a career in business and human resource management.  Training and development was my strength, and I thrived in building relationships that drew out the potential of others and inspiring teamwork.  I learned that leadership and influence didn’t have to come from a company title or a supervisory position.
The Intrigue of Entrepreneurship
I can point back to an eighth-grade introduction to Robert Kiyosaki’s Rich Dad Poor Dad, and the Cashflow Game, as the first seed of entrepreneurship in my life.

I wanted to understand investing and business ownership that made money and created financial freedom.

The desire lay dormant for several years and resurfaced when Lucas and I were dating.

We’d have long conversations about what we wanted to do in the future.]]>
Bruce Wehner & Rachel Marshall clean 40:13
The Mindset Shift – TMA 002 https://themoneyadvantage.com/mindset-shift/ Wed, 08 Nov 2017 03:54:12 +0000 https://themoneyadvantage.com/?p=917 At 25 years old, Bruce had chest pains and thought he was having a heart attack.  The crisis caused him to face his own mortality.  He re-evaluated the nobility of hard work, pushing himself, and hustling. Bruce’s backstory highlights two strategic mindset shifts that have developed him into the person he is today. Because of his experience, he has become a giver with the keen ability to add value to his clients’ lives. The first shift was a decision not to be dependent on another person or entity for his livelihood. The second shift was the move from transactional selling to truly delivering value. Bruce’s early life experiences in business and entrepreneurship led him to embrace business ownership as a way of life.  Because he understands the business culture and unique challenges owners face, he serves them with tremendous value. His perspective and insights are what have allowed him to personally take thousands of clients through a financial discovery process.  His objective is to put the client in control of their own financial destiny. We hope that you will find yourself in his story and that his transparent honesty will validate your own experiences.     In case you missed it, in the prior episode, we discussed How The Money Advantage Began. The Prevailing Culture of Dependence Bruce grew up during the ‘60s and ‘70s.  During the years of the Vietnam War conflict in the '60s, the US economy was struggling.  This was an influential time for Bruce as he watched the birth of entitlement programs. Additionally, in the pre-World War II timeframe, as the industrial revolution began, the economy shifted from being dominated by small businesses, to one driven by corporations and employees. Together, these changes caused people to develop a mindset of dependence on the government and corporations. The Early Influence of His Father’s Business Despite the backdrop of dependence that surrounded him, Bruce learned about business ownership at a very young age. He was the child of German immigrants. His father, like many others in the immigrant community, owned a business. From working in his father’s Shell Service Station, Bruce learned about the value of hard work and the necessity of innovation. He watched his Dad build a self-sustaining business.  His dad developed a team and had the flexibility to leave the business and have it continue to operate. As a child, he remembers working long hours in the gas station, often from 6 a.m. to 9 p.m. The Need for Innovation During Creative Destruction The Oil Embargo of 1975-1976 and Missouri’s Blue Laws restricted his father’s ability to operate his business. This brought about creative destruction, shifting the industry from true service to self-service and convenience.  Service stations used to include pumping gas for people, tire rotation, windshield washing, checking the radiator and fan belts.  To stay competitive, merchants had to mark down the gas.  They provided gas as a loss leader and added convenience items to bring in profit. Bruce’s father couldn't expand into the convenience model because his station was landlocked.  He was unable to ride the wave of change and stay profitable in the new environment and lost his business as a result. The Undercurrent of a Scarcity Mindset As Bruce looks back, he notices the fear that shrouded his father’s entrepreneurial activities.  Business was a grind, and the hard work and long hours were esteemed.  Business was not something you could enjoy and find true meaning and fulfillment in. His family and community believed in never owing anyone, business ownership, taking care of yourself, and living frugally. Additionally, there was a trend in the Baby Boomer generation that it was taboo to talk about money.  As a result, they didn't pass on knowledge to the next generation. In spite of it being a forbidden topic, Bruce was curious about money. One day, At 25 years old, Bruce had chest pains and thought he was having a heart attack.  The crisis caused him to face his own mortality.  He re-evaluated the nobility of hard work, pushing himself, and hustling. -


Bruce’s backstory highlights two strategic mindset shifts that have developed him into the person he is today. Because of his experience, he has become a giver with the keen ability to add value to his clients’ lives.

The first shift was a decision not to be dependent on another person or entity for his livelihood.

The second shift was the move from transactional selling to truly delivering value.

Bruce’s early life experiences in business and entrepreneurship led him to embrace business ownership as a way of life.  Because he understands the business culture and unique challenges owners face, he serves them with tremendous value.

His perspective and insights are what have allowed him to personally take thousands of clients through a financial discovery process.  His objective is to put the client in control of their own financial destiny.

We hope that you will find yourself in his story and that his transparent honesty will validate your own experiences.

 



 

In case you missed it, in the prior episode, we discussed How The Money Advantage Began.
The Prevailing Culture of Dependence
Bruce grew up during the ‘60s and ‘70s.  During the years of the Vietnam War conflict in the '60s, the US economy was struggling.  This was an influential time for Bruce as he watched the birth of entitlement programs.

Additionally, in the pre-World War II timeframe, as the industrial revolution began, the economy shifted from being dominated by small businesses, to one driven by corporations and employees.

Together, these changes caused people to develop a mindset of dependence on the government and corporations.
The Early Influence of His Father’s Business
Despite the backdrop of dependence that surrounded him, Bruce learned about business ownership at a very young age.

He was the child of German immigrants. His father, like many others in the immigrant community, owned a business.

From working in his father’s Shell Service Station, Bruce learned about the value of hard work and the necessity of innovation.

He watched his Dad build a self-sustaining business.  His dad developed a team and had the flexibility to leave the business and have it continue to operate.

As a child, he remembers working long hours in the gas station, often from 6 a.m. to 9 p.m.
The Need for Innovation During Creative Destruction
The Oil Embargo of 1975-1976 and Missouri’s Blue Laws restricted his father’s ability to operate his business.

This brought about creative destruction, shifting the industry from true service to self-service and convenience.  Service stations used to include pumping gas for people, tire rotation, windshield washing, checking the radiator and fan belts.  To stay competitive, merchants had to mark down the gas.  They provided gas as a loss leader and added convenience items to bring in profit.

Bruce’s father couldn't expand into the convenience model because his station was landlocked.  He was unable to ride the wave of change and stay profitable in the new environment and lost his business as a result.
The Undercurrent of a Scarcity Mindset
As Bruce looks back, he notices the fear that shrouded his father’s entrepreneurial activities.  Business was a grind,]]>
Bruce Wehner & Rachel Marshall clean 38:32
How The Money Advantage Began – TMA 001 https://themoneyadvantage.com/how-the-money-advantage-began/ Wed, 08 Nov 2017 01:15:36 +0000 https://themoneyadvantage.com/?p=899 The Money Advantage was born out of unexpected collaboration in the most unlikely of circumstances. Three financial service professionals in an industry known for its undercurrent of competition, from across state lines, different companies, different levels of experience, and different generations. With the common ground of a desire to bring empowering education to business owners to help them keep and control more of their money, a Go-Giver spirit, a willingness to say yes to the unknown and live it as an adventure, and a little dream to start a podcast and the surprising ignition switch that made it happen. I’ll tell you the story of how we met, why we’ve continued to build a collaborative relationship, why we’ve teamed up to deliver The Money Advantage to you, and what you can expect as a result.   The Reason We Met Bruce Wehner’s organization, e3 Wealth, based in St. Louis, Missouri, had become disenfranchised with financial services industry. They saw how difficult it was for a person to get consistent financial advice from their CPA, investment advisor, insurance broker, and mortgage professional, who often worked independently, not collaboratively. They engaged in a mission to transform the financial industry, building a teamwork model across professionals. The objective was to foster relationships with like-minded financial professionals, to share best practices and best empower clients. They partnered with the Nelson Nash Institute to create the Freedom Advisor Live event as a step towards building this vision. My husband, Lucas and I, wealth strategists in Virginia, heard about the event through the Nelson Nash Institute.  When we listened to their teleconferences, we discovered a team doing the same work, that had much more experience. We booked plane tickets and attended the first Freedom Advisor event in November 2015 with the desire to find mentors. It Was the Start of a Collaborative Working Relationship We took immediate action on the lessons we learned, changing most of our client process. One of the changes was implementing a financial picture process with our clients. As I worked with clients, I discussed our recommendations with Bruce to gain further insight.  As a result, we had frequent conversations over the two years that followed. How The Money Advantage Was Born One of the many areas of common ground was that Bruce and I are educators by nature. We both believe in the power of education to give people the confidence to make decisions. Bruce had the experience of sitting down with over 4,000 clients.  One of his unique abilities is strategic thinking.  Through his volume of real-life experience, he has developed the skill to lead clients in thinking exercises that support clear decision-making. My unique ability is communicating complex ideas in a way that’s fun, simple and doable.  I’m able to put ideas down on paper and into a process and communicate them in a way that helps people come to their own conclusions.  I'd been creating video and blog content for over a year, and wanted to produce higher quality educational content with more depth and context. I had been creating video and blog content for over a year, and I saw podcasting as the next step to produce higher quality educational content with more depth and context. Even though it was my desire to start a podcast, it was my husband Lucas that made it happen.  On a hunch, he called up Bruce and asked if he would co-host a show with me. Bruce said yes! Imagine my surprise when I stood face to face with my dream. It was for now, not someday… Lucas and I believed that partnership with Bruce was just what was needed to increase the quality of the conversation. It was the impetus that put everything in motion to deliver The Money Advantage to you today. The State of the Financial Services Industry We recognize that there’s so much noise in the financial industry today.  Do this. The Money Advantage was born out of unexpected collaboration in the most unlikely of circumstances. Three financial service professionals in an industry known for its undercurrent of competition, from across state lines, different companies, Three financial service professionals in an industry known for its undercurrent of competition, from across state lines, different companies, different levels of experience, and different generations.

With the common ground of a desire to bring empowering education to business owners to help them keep and control more of their money, a Go-Giver spirit, a willingness to say yes to the unknown and live it as an adventure, and a little dream to start a podcast and the surprising ignition switch that made it happen.

I’ll tell you the story of how we met, why we’ve continued to build a collaborative relationship, why we’ve teamed up to deliver The Money Advantage to you, and what you can expect as a result.

 


The Reason We Met
Bruce Wehner’s organization, e3 Wealth, based in St. Louis, Missouri, had become disenfranchised with financial services industry.

They saw how difficult it was for a person to get consistent financial advice from their CPA, investment advisor, insurance broker, and mortgage professional, who often worked independently, not collaboratively.

They engaged in a mission to transform the financial industry, building a teamwork model across professionals. The objective was to foster relationships with like-minded financial professionals, to share best practices and best empower clients.

They partnered with the Nelson Nash Institute to create the Freedom Advisor Live event as a step towards building this vision.

My husband, Lucas and I, wealth strategists in Virginia, heard about the event through the Nelson Nash Institute.  When we listened to their teleconferences, we discovered a team doing the same work, that had much more experience.

We booked plane tickets and attended the first Freedom Advisor event in November 2015 with the desire to find mentors.
It Was the Start of a Collaborative Working Relationship
We took immediate action on the lessons we learned, changing most of our client process. One of the changes was implementing a financial picture process with our clients. As I worked with clients, I discussed our recommendations with Bruce to gain further insight.  As a result, we had frequent conversations over the two years that followed.
How The Money Advantage Was Born
One of the many areas of common ground was that Bruce and I are educators by nature. We both believe in the power of education to give people the confidence to make decisions.

Bruce had the experience of sitting down with over 4,000 clients.  One of his unique abilities is strategic thinking.  Through his volume of real-life experience, he has developed the skill to lead clients in thinking exercises that support clear decision-making.

My unique ability is communicating complex ideas in a way that’s fun, simple and doable.  I’m able to put ideas down on paper and into a process and communicate them in a way that helps people come to their own conclusions.  I'd been creating video and blog content for over a year, and wanted to produce higher quality educational content with more depth and context.

I had been creating video and blog content for over a year, and I saw podcasting as the next step to produce higher quality educational content with more depth and context.

Even though it was my desire to start a podcast, it was my husband Lucas that made it happen.  On a hunch, he called up Bruce and asked if he would co-host a show with me.

Bruce said yes!]]>
Bruce Wehner & Rachel Marshall clean 29:22