If you saw last weeks video, you’ll know that I did a Casey Neistat style Q&A, which brought up some very interesting topics of conversation! In one of my answers, I mentioned the M word… MONEY.
‘Who’ and ‘what’ is the main drive behind what you do?
One of my main drivers is money. Let me explain…
We never really had that much money when we were young and I saw what that did to our family. For the longest time, I couldn’t decide whether or not to put that in the video, because there is so much negative connotation around people being driven by money (this drives me insane).
Instead of deleting the clip, I decided to make a standalone video about money and why I believe that money is good - in the right people's hands (take Jerome Jarre for example, who just recently raised two million dollars to help refugees).
I’m also going to break down some basic principles about making money, saving money and growing your income.
I know, some of you might be thinking “what do you know about money? You don't look like someone that knows anything about this”. This kind of information usually comes from someone that looks a lot more professional, and what would I know?
The truth is, these are the basic principles about wealth building that I wish everyone taught me when I was young.
I have studied money and wealth building my entire life, and the fact that I am traveling full-time is a testament of my wealth building skills. So if you want to build this kind of lifestyle, if you want to be free, let's learn the basic principles around money making to kick start your journey to ultimate freedom.
3 MAJOR SOCIETAL ISSUES AROUND WEALTH BUILDING:
There's something wrong about the fact that when we go to school we learn about geography, maths, history, freaking physics - everything except for the one thing that's going to dictate our entire lives from the minute that we leave school.
1. There is zero education provided on this topic!
We have mortgages to pay, we have investments, we have money to manage. Yet we don't have any education on this? That's why so many people are in trouble when they go into retirement age.
“The laws of money are like the laws of gravity: assured and unchanging.”
Money making is just like learning physics or math. There are steps to this. There is so much money in the world and it is available to all of us if you're willing to learn about it.
2. Incorrect belief that money is evil
The second thing we need to address is that some people still think that money is evil. No. Stop thinking like that. Get rid of that belief as soon as possible. It is not.
3. Conversations around money
Lastly, the way that many people currently talk about money needs to change. If you keep saying, “I can't afford it, I'm broke”, you're going to speak this into existence, so you've got to cut this out of your vocabulary ASAP. Even if your reality at this time isn't reflective of what you want it to be, you cannot repeat the cycle by fueling it with these words.
You need money to fulfill your dreams, everybody knows that.
My personal dream was always to travel full-time and to just be free. I did not want to have a job, god damn it. I wanted to go wherever I wanted at any time without restrictions. This is my reality now. It's taken me 10 years to get here, but I'm here.
Whatever your dream is you can absolutely have it, but you have to master money in order to get it.
SIMPLE OVERVIEW OF MONEY MASTERING
This is the simplest principle. It's going to piss you off how easy it is and you're not going to believe that it's actually going to work, but this is my absolute favorite thing that I ever learnt when it came to money management and building my wealth.
1. Pay yourself first.
When a paycheck comes in, you need to immediately pay yourself 10% of everything you earn, no exceptions. This goes into a savings account that you do not touch. EVER. This is until you learn how to invest - which is far later down the track!
You pay contractors, you pay your bills, you have to pay yourself first because you are the most important person and you're telling the universe “hey, I deserve money so give me more”.
Always pay you first.
2. Live below your means
This doesn't mean that you have to give up having fun in life. It doesn't mean no more avocados. It doesn't mean you have to stop going to the movies. It just means don't buy stuff that you can't afford. It is simple.
I've made a great amount of money this year, and I still have the exact same lifestyle that I've had it for a long time. I don’t buy more stuff because I know this money is needed for investment in my businesses, in helping others and investing in properties.
When most people make more money, they also increase their expenses. This is something you absolutely have to avoid doing. Resist this urge.
3. Do not confuse your necessary expenses with your desires
Instead of trying to solve the problem by taking out a loan why don't you figure out a way of making extra money to afford this thing that you really want. DON’T dig it into your savings.
4. Increase your skills
This is a super important one, that I think so many people dismiss. After high school, many of us don’t go on to study more. The more you know the more you can charge. You always have to keep learning.
5. Pay off your debt
If you are in debt, the fastest way to get out of it is to live off 70% of all you earn, save 10% because that always has to come first, and pay 20% off the debt every single time you get paid. Make sure you stick with this plan. You'll be surprised how fast you can actually pay it off.
It is important for you to first pay off this crappy debt, because it is probably holding you back and causing you a lot of anxiety.
Later down the track, when you are money savvy, you'll be able to learn what it takes to actually use debt to your advantage, such as buying investment properties, which are going to be working for you further.
6. Crush your spirit of procrastination
This is not directly money related, but if you want to make a lot of money, you cannot procrastinate. This is something that we've all dealt with our entire lives, you just have to find something that you really really really love and work on that. Do not let anything get in your way.
If you need to, try to follow a routine, just like I have been following Casey Neistat’s. Procrastination doesn't have space in those routines.
7. Make money work for you
I believe it's super important to take control of your money into your own hands. That means not relying on your income or retirement pensions etc, to take care of you. You need to learn how to make the money work for you, through studying money making skills.
When you have an office job, take the time to learn what else you could do to increase your income. It should get to the stage where you have a lot of passive income coming in, so that you can be making money while you're asleep.
If you don't think it's possible for you, think again. It is possible for everyone. No one is born with these skill sets, everyone learns along the way, so if this is what you want to learn, you learn baby! I believe in you.
8. Learn to be lucky by working hard and working smart
Luck is a very important component of this wealth building strategy, however it isn't some mystical thing that only happens to other people.
Luck is ‘hard work meets opportunity’. Whenever you have an amazing opportunity and your skill set matches, this is when you can grab it with both hands and go for it. If you keep working really hard and smart, opportunities are guaranteed to present themselves.
9. Surround yourself with like-minded people
Some people in your life have probably been burnt by money in the past. They may have lost a lot of money trying to invest, trying to learn this skill of making money. A lot of people try and then they give up. It happens to everyone who's trying to make money. You learn, you fail, you learn, you fail - and then eventually you succeed.
This is why it's dangerous to listen to other people, including me, about wealth building. You need to do your own research.
Just be aware that some of the people around you will most likely be very much against wealth building, because they think it is not possible. You have to find people that think like you, and be willing and open to the idea that sometimes you're going to fail. It's going to happen, this is just a learning curve.
Money-making, just like maths, isn't the most exciting topic but it can be when you are increasing your bank account, increasing your freedom and growing closer to your dream life.
This definitely wasn’t a very typical ‘Sorellel video’ but I'd love to know what you guys thought of it! Was it helpful and what strategies are you going to take away from this straight away? I would love to hear :-)
Until next time, PEACE!