The importance of the universal law of saving can not be emphasized enough.
We all know we should be saving, so much so, it almost sounds cliché at this point, but when we look at the statistics and see that 76% of people are living paycheck to paycheck, It becomes very clear that a vast majority doesn’t have any money left over to actually save at all.
When we talk to new members in our community majority says, yea Brian, I get it I’d love to save, but see you don’t understand, I can barley afford my monthly expenses, how can I afford to save?
I always respond very blunt with, no one can afford not to save.
Then I give this very straight forward analogy to drive the point home,
If you heard there was a money machine in the Grocery store parking lot that spits out money and you can grab as much as you want but once the machine runs out its over.
Where would you be in the line of people waiting to grab the money coming out of the machine?
If your anything like me you’d probably be camping out with sleeping bags for a few days before the machine is fired up to make sure you are first in line to grab the most money.
Well guess what YOU are the “money machine”. Every Month you bring in money and then it is dispersed or in most peoples case disappears.
Where are you in the line?
Well if your like the 76%, your not even in line at all.
Didn’t you work for it? Why are you not in line to keep some of it?
Housing expenses, Transportation expenses, Phone bill, Cable bill, Food, Entertainment, all these companies are in line before us. We just figure,
we will save what ever is left over.
when we plan to save whats left over, you know from experience, there is never anything left over.
We Must PAY OURSELVES FIRST.
We must be first in line when the money comes in before it’s dispersed.
What I’ve Realized as of now, the vast majority aren’t saving because they don’t understand the importance/significance.
They know they should be doing it, just like they know they should be flossing, but they don’t know why they should.
I don’t know about you, but for me, I don’t take action, unless I have a strong enough WHY.
Majority says to themselves, I can’t take my money with me when I die, why say no to myself. If I want something today, Im going to get it because I don’t know if tomorrow will ever come.
When I get that promotion, I’ve been working so hard for, I’m going out right away and financing the bigger home and the nicer car.
Is that why you worked so hard? For a nicer Car or bigger home?
Then more fuel is thrown on the fire when you take into account the majorities distorted perception of how wealth is created,
Majority thinks, “rich people are greedy and evil”, They say, Im not greedy and evil, so they SPEND, SPEND, SPEND every last dime.
If I become rich how will I be viewed by everyone around me? I have to physically work hard to produce income. or What if I save all this money and then loose it all? What will they say about me then?
All these limiting believes limit our realities. These Fears directly sever the flow of abundance that the universe wants to give each and everyone one of us.
So now for the reason WHY we save our money.
We save our money because it can work harder than we can ever work. Money properly employed works 24/7, 365, No breaks for food or to rest.
Picture this, a life where your money pays you enough to cover all your expenses and still continues to grow.
Now when we look at it that way. That bigger house can wait. That fancy car, we can put on hold. Because we just learned, if we have money first saved then properly invested, we can buy all that stuff with the money our money makes and not have to go to work in the morning to pay for all of our expenses.
The ways of the past are just that the ways of the past. 65 and retire with a pension has gone the way of the dinosaurs.
The baby boomers are the last generation to possibly experience this way of life and most of them wont. Look around at how many people you see that are in there 70’s working at Walmart. If you think your going to slot away 40 years, 40 hours a week and show up at 65 ready to retire you are sadly mistaken.
But start saving now at 20 years old and you can easily have enough passive income by 30 to not have to work a Job ever again.
Interesting enough what are majority of people doing at 20 years old?
Oh Thats right, binge drinking, smoking pot and taking out a huge amount of debt in student loans.
To hopefully get a Job?
If you are new to our community, you might not be familiar with the cash flow quadrant, so before making reference to it let me show you what it is,
The cash Flow Quadrant depicts the 4 ways in which cash flow can be produced.
Wait, wait, wait, so you mean to tell me that a Job is the least efficient way to earn money and people are spending their future going into debt to maybe have the opportunity to get a job one day.
ARE YOU KIDDING ME????? WAKE UP PEOPLE!!!!!!!!!!!
$200,000 in debt to get a “good job” ask a business owner what a good job looks like? After they get off the floor from laughing, they will most likely state something like, “there are no “good jobs.”
Lets look at the word it self J.O.B.
Do you know anyone who has gotten freedom from working a JOB?
No obviously not.
How can we ever be free if we are renting our time for money?
In a Job in order to produce income, we need to be somewhere doing something. Its not you its the vehicle you are in. You are a hard-worker, I know you are, you wouldn’t be here if you weren’t. Hard working is not enough to gain freedom if your working in the wrong quadrant.
Profits are better than wages.
Wages make you a living, Profits make you a Fortune.
The only way to become free while working a Job in todays world is to save enough money in investments that the lump sum of money at a 5% annual distribution will cover all your basic needs.
So in order for your money to pay you $50,000 a year, which is probably more than what your expenses are, you will need $1 million dollars in the proper investments.
How do you save a million dollars?
Save and Invest $1,000 a month for 20 years.
Wait hold on a minute?
Are you saying if at age 20, If I start saving $1,000 a month by the time I’m 40 I’ll have a 1 million dollars and be able to withdraw $50,000 a year. All while the million continues to compound year after year.
YES YES YES YES YES YES!!!!!!!!!
So now how much sense does it make to get out of school at 22 years old with over 100k+ in student loans (if you went to a state school) and stuck paying the bank or government back $800-$1,000 a month plus interest for the next 20 years.
1) Ending up at 42 just finally getting out of debt
2) At 40 free to do what ever you want and not have to worry about personally generating income EVER AGAIN.
Which one do you choose?
If your not 20 thats ok you still have plenty of doubling periods BUT you better get started NOW!!!!!!!!!!!!!!!!!!!!!
and there are two ways to save a $1,000 a month cut expenses or increase income.
Im sure your saying, how do I do that, I don’t want to go without and my Job definitely isn’t going to pay me anymore.
THIS IS WHY WE CREATED THE FINANCIAL FREEDOM CREATOR.
To assist with both key aspects of Freedom Creation.
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