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if the company fails, whose fault is it? The ceo the company does well whose fault is it or who's responsible? The ceo you are the ceo of your own life. So why not reinvest into yourself. How do you define the word success? You may look up the generic definition, but the reality is only you can write your definition for the word success. Welcome to the defined success podcast. Will help guide you to better understand and achieve success in all areas of your life. Make sure to follow us on instagram at defined success underscore pod and subscribe on any podcast platforms. So you never miss our monday and Wednesday episodes. Each and every week. Good morning everybody welcome back to another episode of the defined success of podcast. Happy monday. We're back with another monday. Soul episode took a couple off. I was doing a bit of traveling recently and I don't really have the time to devote to a podcast myself. We still kept with the interview. So if you look back, we had an interview with Chase tuning and heather hoch. So if you have missed those episodes, the last two Wednesdays, make sure you check them out. Some of my favorite interviews that I've done so far. So make sure you tune in. But we're back with a soul episode today to talk about finances, money, wealth, financial freedom, etcetera. I'm sure I just grabbed your attention right there. The topic of generating wealth is attractive for a lot of people, whether you want to be a millionaire or not? Everybody wants to have some sort of financial freedom, some sort of sense of piece that they do not have to worry about their finances that they have a steady job or they have enough passive income coming in that they can provide for their family for their future and generations to come. That is the goal for many, many people, obviously different goals for different people, but everybody loves to have some cash. So I want to just take you step by step, five different things that you can do right now To make yourself closer to be wealthy at any age. If you're listening to this at 18 years old or at 40 years old, these steps still apply and these five steps are essential to get you off the ground and get your mindset and your actions going towards financial freedom. So we're gonna get right into this first number one. You have to be aware of what you have by that. I mean, be aware of where your money is and how much money you have. I use the example all the time on this podcast. If you want to lose weight, if you're Trying to lose 40 lb, but you aren't weighing yourself every single day or every single week, how will you know, if you're losing weight if you're staying the same or potentially gaining weight, it's the same with money if you want to make You know, 10,000 more dollars this year, but you're not tracking where that extra money is coming in from. You're not tracking what money you have right now, you don't know if you're adding money, you don't know if you're staying the same or if you're losing money, you're spending too much. You have to be aware of where your money is at all times. You should always know how much money you have. It doesn't have to be down to the exact scent, but every day, every week you should have awareness of how much money you have. A general idea of. This is what I have. Look at your finances. That is the uncomfortable thing for a lot of people used to be uncomfortable for me, even when I thought that I was doing pretty well, I was still uncomfortable with looking at my bank account and my portfolios because I always thought that there was more that I could do, there was more money to be had. So I didn't want to look at what I had. I often felt discouraged, but I started making it a habit to look at these to not feel nervous when I opened up the app for my bank account on my phone, not be nervous when I opened my portfolio, I looked at the stocks I was investing in. Not nervous when I looked at my savings because the more you look at that, the more you are aware of this is what I have right now. So if you're going out with your friends now, all of a sudden you don't have that surprise if your card gets declined or if you're saving up for a big purchase, you want to buy a new car, you want to lease a car, whatever that looks like. You don't get into a situation where you're ready to close that deal and all of a sudden you're like dang, I don't have enough money or you want to move into a better apartment or I can't afford that. You should be knowing where you stand financially at all times. Also, where is your money? Do you have your money in the bank? Do you have different portfolios? Do you have a Roth ira, we'll get into all of that a little bit later. But be aware of not only how much money you have, but where you have it, because you always need to make sure your money is not all in one place for security reasons. And lastly, where do you want to be, be aware of what you have? But also where do you want to be by the end of this year? How much money do you want to have to your name In 10 years? How much money do you want that starting place that you're at right now? Next week, Next month is very important to know because when you try to make that next step next year? Next five years, you know exactly where you are and how much you need to gain to get to the next level. So number one, be aware of how much money you have at all times. Number two very very crucial step manage your money, you know you can make a lot of money but if you don't manage it properly it is going to go away very, very quickly. So what does it mean to manage your money? You have to step back and think about where your money is and where are you spending your money? So what are the set expenses that you have every single month? Do you have rent that you have to pay? Do you have car insurance? Do you have a car? You have gas groceries, subscriptions, A gym. Um Service. Do you have different things that you're paying for that? Maybe not or maybe not are necessary but you're doing anyways. What are those set expenses every single month? Okay. Where are you wasting money? Do you have a netflix subscription that maybe you don't want to watch netflix too much? Or like many people do. Maybe you have a friend that has a login And you can just log into theirs and you can save that 10 I think that's up to almost $15 a month now it started like below 10. And then as the years go on they just keep adding on like that. That adds up that compounds year after year. If you just have subscription that you're not using, be aware of where your money is right now. Be aware of where it is draining you. Um If you go out for coffee every morning, if you go out to eat all the time, maybe you start saying if I'm going out to eat twice a week, Alright Let's cut that down to one And all of a sudden you got $40 extra dollars in your bank account every single week just because you decided to stay home cook your own meal. It's gonna be healthier, but it's also going to save you a lot of money. Also very crucial step that not a lot of people talk about. Where can you negotiate with your money? Part of managing your money is also negotiating everything. Everything in life is negotiable. That is a very, very important lesson for a lot of people to learn. If you are renting an apartment rented a house, your rent is negotiable, You might see online when you book it, when you sign the lease that you have to pay $1,000 a month. If you talk to the landlord, you talk to the property manager, whoever you have to speak to, chances are if you say, hey can we do 9 59 75 it might not seem like a big difference right now, But a $50 discount over a year that's $600 you could be saving. That is crucial for a lot of people to start negotiating. I was talking to someone a couple of months ago about their finances. I was giving them this exact lesson how to manage your money better. And she was telling me where her set expenses were, her rent, her car payments, her car insurance. That is where I was alarmed. The car insurance, the car insurance was astronomical amount of money per month. I said that doesn't sound right. I think you should give them a call and see what you can do about that. See if that expense is correct and if it is correct, see if you can negotiate it down a little bit, it could save you a lot of money. Well it turns out it was incorrect and she was able to knock off over $100 a month in her car insurance that is over $1000 a year. Just by picking up the phone and saying, hey, something seems off or hey, this is too much money. Can we negotiate it down? It doesn't hurt. The worst someone can say is no to start negotiating if you think things are too high. Lastly, the first book that I read when I started my personal development journey was by T harv Eker and the book title was Secrets of the Millionaire Mind. So already Draws your attention millionaire mind. I would love, I would love to have $1 million. I'm going to read this book. So I started reading it and you get a lot of tips on the way of how to get more money. But the biggest tip, the biggest piece of advice that I walked away with was how to manage your money better. And he talked about six different jars to managing your money. So these jars broken up into different percentages. First jar is your necessities. This is your car groceries, rent clothing, obviously basic clothing, not going out and buying a designer shirt for a couple $100. That is not a necessity but your necessities what you need to live and to operate on a day to day basis. That jar is 55 Of the money that you have. 55% of your income. The next jar 10% goes to long term savings for spending. So This jar is all for an emergency fund. It's for vacations. It's for a rainy day account. This money that you're putting away right now, you're not going to touch it. But when something comes up an emergency comes up or you want to take a vacation, you already have 10% of your money saved up. For that reason. The next 10% is your play account. This is where you can go to the spa, you can go out to eat with your friends, go to the bar. All things that you don't need to spend money on. But we're gonna do it anyways, he brought up a very good point. People that are wealthy people that are financially free. They get to do all of that with no regrets because they have the money to do. So they can go out and they can spend time with their friends spending money if you're a girl you can go get your nails done all the time. But not all of us are in that situation, but we should be train ourselves to think this is what I want and this is what I need to get used to. So 10% goes to that play account where you can go out, you can have fun, you can spend your money on things that might not be necessary, but it's only 10% of your income right now. So it's not going to do a lot of damage. But now you're like, Hey, I can get used to that massage every month. I can get used to going out with my friends more often I'm going to work harder to raise that that income. So now that 10% that jar is going to expand, I'm going to be able to do it way more often The next jar, 10% goes to education. This can be books, could be personal development courses, it could be a mentor, a coach, whatever that looks like whatever speaks to you invest in your education. The next jar, 10% goes to your financial freedom, 10%, going to stocks, real estate, Cryptocurrency et cetera. This is money that you're putting away into a portfolio of whatever you prefer. Different socks. I'm not gonna recommend any but going away into your investments and you're not going to touch it, you're going to let the money work for you and over time, compound interest crews and all of a sudden you're going to have way more money in future years than you would if you just held onto it or put in something like the play account because you're just going to spend it. The last 5% goes to charity. I was reading a book today. Money master the game by Tony Robbins and he was talking about how the more that you give, the more opportunities come your way. So the more you volunteer your time, the more you give away your money to charitable reasons that is going to bring you return on investment. So if there's a charity that speaks to you, give your money, if there is a volunteer opportunity that speaks to you, give your time. So that is step number to manage your money properly. Step # three is to get it out of the banks. A lot of people, I have money in the bank right now, but not all of my money. A lot of people have all of their money in the bank, which is a terrible, terrible idea. Today's interest rates are below 1%. They're a fraction of a percent. So if you have $10,000 in the bank in a year you're making about a dollar back. That is nothing. Your money is staying the same. Actually, it is depleting because of interest rates. Today's interest rates are not interest rates, inflation rates Are around 7%. So are the value of our money is going down. The cost of goods and services are going up because the value of money is going down. So all of a sudden that $10,000 in the bank means less next year than it does right now and the next year and the next year it loses its value because you're not building with it, you're not fighting against inflation, cash is trash, cash is going to get you nowhere. And by holding cash, you either lose it or you're going to spend it. It's not gonna do any good sitting in the bank, it might seem safe, it might seem secure, but over time you're losing money and you might have more incentive to then spend it and that's not that's not good either. Number four step to financial freedom is invest in yourself. So when you start a business, people always talk about investing your money back into the business. If I'm starting a online business that I'm selling product And I make $1,000 this month, it would be wise to put a lot of that money back into the business to find new products, to increase my marketing, increase, my website, maybe outsource some tasks to other people that is what a smart business move is, that's what it looks like, Why would you not do the same for you? I use the example if a company fails, whose fault is it? The ceo the company does well whose fault is it or who's responsible? The ceo you are the ceo of your own life. So why not reinvest into yourself? You can invest in books, books are very cheap, easy way to improve your mindset and also learn more and develop yourself personally. You can buy a book on any topic. It doesn't have to be a self help book, it doesn't have to be a motivational book or a book about mindset. It can be a book about something a subject you want to study, it could be a fiction book, something that will help you push the needle forward and learn more in whatever area that looks like for you. Also, online courses, there are plenty of people out there that are selling services online to help you either invest your money, start a business, learn how to have a Youtube channel, learn how to start a podcast etcetera, etcetera. There are plenty of online courses out there. There's also mentors, there's coaches, also when you pay for something, when you're paying for a book, when you're paying for a mentor an online course, you are more likely to invest your time properly and to get more out of it, you're going to take it seriously because your money is attached to it. If you pay $1,000 for a mentor, you're going to take it seriously. If you just call up a friend and say, hey, can you be my accountability partner for a couple of weeks, I'm not going to pay you anything, I just want to keep you, keep me accountable, you're not going to follow through. There's no incentive for you to follow through because you have no money attached to it. Same with the buying an online program, someone selling a free pdf for you to download and learn all the intricacies about starting a business, you're not going to do it. But if you hire someone for a couple $100 to do the same thing, you're going to do it. So if something matters to you invest in yourself to make it happen last but not least number five. The last step to building wealth at any age, possibly the most important one to take action is to invest or store your money to create passive income. So first invest, if you have the money right now you can invest it, you can put into the stock market, you can put into real estate, Cryptocurrency whatever you want. If you don't have enough money, you don't feel like you're prepared to make a move like this right now, you can store that money hint. I'm not saying save, I'm not saying save and put away in the bank for a couple of years. Store that money until you get it up because as soon as you get to that threshold where you're comfortable with investing it, you're taking it out, you're putting it right into the investment account and you're not touching it from there. You do not want cash, you want real assets, you want an asset. That you can say my money is safe with this. You want something. You can point at whether it's a stock certificate for owning a share of Apple. You can point out that you can touch it or is it real estate If you want to buy a house an apartment unit that you're going to rent out to someone, you're gonna put on Airbnb. You can touch that. You can see it. It is a real asset. You want to buy gold, You wanna buy silver, you can touch that. It's a real asset. Cash is also to some people in asset because you can touch it, you can feel it, you can see it but cash it has no meaning to it. It's a piece of paper. The piece of paper itself has no value. We as society, we as a government give cash value. There's a big big difference. Put your money into the market the stock market and the simplest way possible. Put into an E. T. F. You can put it into S. & p. 500. These are the 500 most popular well performing companies in the country And you don't have to touch it, it's going to go up. You can expect 6-9% returns every single year. For the most part. There's there's an asterisk there obviously if something bad happens but you can almost always expect returns from this and over time that money is going to compound, you're just going to grow, grow, grow. You don't have to do any research on picking stocks. You have to do research on seeing what stock is going to give you the biggest return next month. Just put in the money market and let it do the work, let the money work for you. You can also start a Roth ira a Roth ira Ira is an account where you can put up to $6000 in per year As stock, real estate, Cryptocurrency whatever and you can't touch it until later in life. I believe the age of 65 but when you do take that out it's tax free. So if you over the years accumulate $5 million $5 million. Pretty great deal. So when you retire you have a big big check coming your way. If you do it properly you can buy real estate, you can buy a property, you can invest in someone who is buying properties, get a real asset that is going to give you not only cash flow every month, but it's going to appreciate over time and you can sell it and make more than you invested in it. Cryptocurrency market is crazy, volatile. Uh It's always going up and down. Bitcoin ethereum, Doggie coin, whatever coin you are looking at. It has its good days, it has its bad days but we're seeing especially now um overseas with the war going on between Russia and Ukraine, a lot of banks are shutting down and the only asset that people have left is Cryptocurrency. So it is here to stay is a high performing asset for a lot of people. But make sure you do your research also investing in investing your money. You want to make sure you educate yourself. Start early Investing something as small as $10 a week over 20 years. Seems like not a lot $10 a week. Everybody can do that. However if you do that over time you'll be in a much better position than someone that does not. If you're saying it's not gonna do anything that the people that say that they are going to be broke later in life because they are not investing their money right now and letting it work for them, let your money work for you, put in the market, put into a stock, put in a real estate, put it into yourself and you will see returns whether it doesn't have to be tomorrow, it doesn't have to be next week, but when you need it, when you're starting a family, you are going to be in a much better position because you let your money work for you and you invested it properly and got it out of the banks, you were losing money in the banks, put it into a performing asset and get your wealth building right now, appreciate you guys all for listening. That's going to do it for this episode of the defined success podcast. If you enjoyed this episode, if you got any sort of value, please make sure you subscribe share with a friend, post on your instagram story, give us a rating review. I would greatly greatly appreciate the support. Thank you so much. Make sure you check this out on Wednesday for an interview and remember success is not something that happens overnight, you made a great decision to spend your time with us today. I hope that you feel closer to being successful. Success requires stacking small wins every day and today is a great day to win