Why Simple Financial Strategy Works

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In life and in finances, simplicity is underestimated.

The truth is, simple things get done, the complex usually don’t.

In the end results matter so getting things done isn’t optional.

Within finances, having a complex “master plan” can be overwhelming and lead to paralysis. (Not to mention unnecessarily costly)

Rather than fixating on the massive master plan, simply take the first step or begin with the most important action.  By getting the first step right you’ll be setting yourself up to powerfully take the second step.

Said another way, doing the most important and obvious things first, you lay a solid foundation.

Anything large starts as something small. In fact, the complex is merely made up of many simple, interlocking parts.

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In finance the first steps may be obvious, but not glamorous. Take them anyway.

For example: begin saving 10% or more of your income AND NEVER STOP.  As your income increases, your 10% savings should too. This seems obvious, but many won’t take the time to carry it out.

If you don’t have one, then use that money to build up your emergency account. Start with 1 to 2 months worth of expenses so that you can begin building peace of mind and confidence.

Next comes another simple step: if you have inefficient debts (anything over a 7% interest rate) begin using that “savings” to pay off the debts.  Paying off a 17% credit card has the same impact on your bottom line as earning 17% in an investment… WITH NO RISK. 

Paying off bad debt isn’t sexy, but it’s incredibly effective. Don’t skip this step.

Once the bad debts are paid off, continue to save until you have 3-6 months worth of expenses.

Again, this is simple but it continue to build your confidence and help your mindset become one of abundance rather than fear or scarcity.  This is a HUGE shift.

If you simply continued to save 10-20% of your income, and never invested a penny, you’d still end up ahead of 80% of people in our country by retirement.

It won’t make you uber rich, but this plain and simple practice will single handedly change your life.  It takes time, but even with no other action it works.

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Of course, once you’ve begun to build up savings things can get more complex, but only if you let them. You’ll want to put your money to work earning for you, but that can be a large learning curve.

The truth is developing a financial strategy doesn’t have to be tricky, but with so many people looking to “help” you manage your money, it can be difficult to determine which way to go.

Some will show you intricate plans with many moving pieces and in depth flow charts. Others will ask you to hand them your money and never look at it until retirement.  Neither of these is a good idea because if you don’t understand what’s happening, it’s easy to lose confidence or get bamboozled.

The good news is that you CAN keep wealth building simple and allow yourself to focus on what’s really important: your loved ones, your health, and your work. If you get those right, you’ll be winning the game of life!

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If you’re ready to let go of all the complexity and simplify your finances, we can help.  Our focus is to get money out of the way so that you can live your biggest life. If that sounds like what you want, let’s talk.

You won’t get a bunch of technical jargon or smoke and mirrors. Just a clear, easy to execute strategy that fits your lifestyle and will help put your mind at ease, so schedule a free conversation here…

Get Off the Financial Treadmill and Start Building Wealth

I work with a lot of successful business owners. Dentists, Real Estate Investors, Optometrists, Chiropractors and more... 

Most of them make strong six figure incomes, but far too many of them don't have nearly enough to show for it. They bring in a great income, but somehow it all evaporates before they can figure out what's happening.

I call this situation the "financial treadmill".

Money comes in the front door and then goes right out the back door, and just like that monster at the gym, it will suck the life out of you while taking you nowhere. It leaves you tired and wondering how you're ever going to get anywhere...

So why do these smart people with good incomes struggle to building wealth?

Because they haven't made the critical "pivot" yet...

What "pivot" you ask?

It's the pivot point when you begin to turn your "income" into "assets", and it's a LOT easier than you probably think.

Your "income" is money produced by your "daily grind". It's why you get up and go into the office - even if it's at home - and what makes you feel guilty when you are supposed to be enjoying your family vacation.

Your income requires YOU to be working, otherwise the money doesn't come in very fast (or at all). 

Don't get me wrong, income is important. But if you never make the pivot to building assets, you'll always have to work for money instead of IT working for YOU.

On the contrary, "Assets" (as I'm referring to them) are tools that get money working for you - even when you aren't around.  They can generate income 24 hours a day, 365 days a year.

Even better, they don't tire you out in the same way as the "treadmill".

At worst assets will build up over time and give you a comfortable baseline of earnings for enjoyment or retirement. However, if utilized correctly, the shift from earning income to building assets will create the freedom and certainty that many clients are missing before I help them make the pivot.

If you've ever wondered what it would be like to have money working for you (even when the markets aren't cooperating), then it might be time for us to have a conversation.  For most of my clients, making this pivot literally changes the trajectory of their life. 

It will shift you away from a future of endlessly slaving away in your business, and toward creating a future that allows you to enjoy the fruits of your labor.

What could be better than spending time with the people you love and on projects that matter to you!?

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If you'd like to know more, simply click here to set up a complimentary call with me (or my team) or download our book here...

A Savings Strategy that Works...

Everyone knows that saving money is important. We all understand that it is the basis of creating financial stability and a prerequisite to having money to invest. Yet, the vast majority of people in the U.S. aren’t saving anything!

In fact, according to CNBC, a staggering 78% of full time workers said they are living paycheck to paycheck.  In case you don’t speak “financial jargon” I’ll translate: they aren’t saving.

I’m sure they WANT to save, but they just can’t seem to do make it happen.

It’s seems understandable because we all have car repairs, home maintenance, activities for the kids, and everyone NEEDS a 75 inch TV, right? At some point you’ve probably felt like every time your are about to get ahead, something comes up and you are back where you started.

Sound familiar?

If you are part of the 78% (or even if you aren’t) then its time to listen up because this simple skill of ‘saving’ is literally the difference between people who become financially independent, and the other 78%.

Now, before you say anything, I’m going to tell you something you don’t want to hear. The difference between financial success and a double digit bank account is NOT about how much money you make.

Seriously. It’s not.

How much money you make DOES matter, but it’s not the MOST important factor once you get above the poverty line.

I’ve worked with a LOT of people that make over $500,000 a year that are BROKE.  Yep, they are living paycheck to paycheck just like everyone else.  That may seem impossible, but its true.

In every single case I encountered, it is because they NEVER LEARNED HOW TO SAVE.

The reality is, if you never learn to save, then you are “learning” to spend every dollar you make. Its that simple.  As you make more, you spend more.  Its very easy to spend an extra $10, 20, 50k a year by simply having a slight nicer house, car, vacation, and eating out a little more often.  

So, by the time you are making $40k a month you have a really nice house, kids in private school, some great trips in your photo albums, and 2 beautiful cars in the garage - but ALMOST NOTHING in the bank.  

Simply put, saving needs to be a first priority and a conscious effort or it rarely works.

That doesn’t mean it needs to be grueling or difficult, it just needs to be planned and intentional.

Here’s the simplest way to begin saving right away:

From here forward, immediately set aside 20% of every dollar into a savings account. (If you can’t do 20% right away, then start with 10%) Don’t wait till the end of the month, instead transfer the money as soon as you get paid.  You may of heard the phrase “pay yourself first”, this is what it means.

Most people make the mistake of trying to cut back spending all month and save whatever is left. If you’ve ever tried this you know IT DOESN’T WORK. I’ve personally talked with 1000’s of people who’ve tried it, and the answer is always the same, “There is never any left”.  

Bottom line: you have to SAVE FIRST and learn to live on the rest.

Even if you are barely making ends meet, begin putting the money in the savings account. If you save first, you’ll begin to strengthen your ‘saving muscles’. You can always pull the money back out of savings for an emergency, so don’t let fear keep you from learning to save.

Soon enough you’ll begin to see the money build up in your savings account and you’ll be on your way!

The best part is that seeing your savings account grow gets REALLY EXCITING!  It takes time, but watching the balance go up each month will reconfirm that you are doing the right thing and help you stay on track.

If you do this, then as you make more, you save more.  More importantly, it becomes a habit that will serve you the rest of your life!

Having money in the bank means you get better loans and interest rates, you don’t have to put emergency expenses on credit cards, and you won’t ever get backed into a bad situation because you have a “safety net” in your savings account.

So if you aren’t saving 20% of what you earn now, its time to start.  In fact, if you can automate your savings by having your bank set up an automatic transfer or a sweep - that’s even better!  Once you get started you’ll be amazed at how fast things change!

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What No “Financial Advisor” Will Ever Tell You

I’ve been in the world of finance, investing, and wealth creation for since 1999 and I’ve seen a LOT of financial strategies and theories. However, what is most mind blowing to me isn’t what financial planners are saying… its what they are NOT saying!

Honestly, in most cases I don’t think that financial advisory types are misleading clients on purpose, its just they are so ignorant about how wealth creations really works that they leave out the most important concept of all… What am I talking about? Its called opportunity cost.

So what is opportunity cost anyway? You make have heard the term, but if you don’t know what it means, it could be costing you BIG TIME!

Simply put, opportunity cost starts with the idea that if you use your resources (in this case your “Dollars”) for opportunity A, you can no longer use them somewhere else (opportunity B). This acknowledges that you “missed out” on whatever opportunity B had to offer because your money had already being allocated. So there is a “cost” associated in whatever you might have done.

So why does this matter to you?

Because if you don’t consider the opportunity cost of how you grow and invest your money, you are likely costing yourself without even knowing it.

Let me give you some easy examples that I see all of the time…

Let’s say you are contributing money into a retirement plan but you also have balances on high(er) interest credit cards. All you see is that are are investing money (which sounds pretty sexy and savvy). What you are NOT seeing is how much you are “missing out on” by having to pay interest to your credit card company.

To go even deeper, let’s say you are earning 6% in your retirement plan but your credit card is at a 16% interest rate. In this case your opportunity cost is 10% (it is actually much higher if you account for fees & taxes) because they are “missing out” on saving the interest they could have “never paid”.

[The difference between the earnings of 6% and the loss of 16% = 10%]

The reason this is so incredibly damaging is that not acknowledging the opportunity cost would let you think you were earning 6% on your money when you are actually LOSING 10% on your money. In other words you are being completely deceived that you are doing the “right” thing when you are actually losing boat loads of money.

But that’s not the end of your losses… it gets worse!

Once you have missed out on the money you could have saved/made, you no longer have that money to reinvest for more gains. This means that every dollar you “missed” is more than a dollar, it is the amount that dollar could have earned if reinvested and grown throughout the rest of your lifetime…

The tragic part of all of this is that you DON’T EVEN KNOW ITS HAPPENING!

While you blissfully continue down the road of thinking you are a ‘savvy investor’ you are actually losing DOUBLE DIGITS on your money – year after year. It’s no wonder it seems so tough to get ahead.

So why don’t most advisors tell you about this?

Honestly, most of them don’t even know this concept exists, so they can’t share it with you. Beyond that, most of them won’t tell you because once you realize the REAL cost of tying up your money until retirement, you’ll probably never buy one of their products again.

This is a concept that you’ll never hear from Suzy Orman or Dave Ramsay – so what else is traditional financial planning not telling you? Find out by scheduling a time to talk with one of our wealth strategists and learning how wealth is REALLY created…

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The Most Important Financial Habit

Imagine you just bought your dream car. How would it feel to sit behind the wheel with the windows rolled down and the fresh wind blowing across your skin. The rumble of the engine tickling you as your favorite song plays on the radio making you want to sing at the top of your lungs, and you can’t believe how great it feels to lean into the incredibly comfortable seat. Everywhere you go, people see your car and gaze in admiration at how beautiful it is rolling down the road…

Then suddenly the engine stops cold. Not even a gurgle as it freezes and leaves you sitting in a lifeless, soundless, hunk of metal going nowhere.

Just 30 seconds ago you were living the good life, but now you’re wondering how you’re going to get anywhere… What changed?

The engine stopped. That’s what.

In a car your engine is EVERYTHING. Without it you can’t move anywhere, the windows don’t work, and even the radio stops. The engine is the entire foundation of what makes a car go.

Your financial life is the same thing. It has a lot of fluffy bells and whistles that can be exciting, but without the ‘engine’ none of it works.

So what’s the financial engine in your life? Learning to SAVE.

I know. I know. That’s not very sexy. BUT, it’s incredibly important.

Think about it… If you never saved any money, how would you grow your business? How would you invest? How would you ever go on vacation, buy a house, or do anything that cost more than a single paycheck?

Learning to systematically save is literally he difference between people who become incredibly wealthy and those who live paycheck to paycheck. Yes, even if you make a LOT of money.

I’ve worked with 1000’s of small business owners and I’ve seen this play out in every. single. case. I’ve helped people who make less than $50,000 a year and are building wealth, and I’ve worked with too many people that make $50,000 a MONTH and are BROKE.

The broke ones spend every penny they make and live in constant fear.

How is that possible?

Because they never learned to save. That’s it.

Seriously. The “broke ones” are smart people and they are doing a lot of things right, but they never figured out how to set aside money from each ‘payday’ and its KILLING them. Its hard on their health, it strains their marriage, and it will be very hard on them when life throws a ‘curve ball’ and they have nothing to fall back on.

Before you learn to run you must learn to walk.

Before the windows and radio work in the car, the engine has to be firing.

Before you can build wealth and invest effectively, you must learn to save.

If you aren’t already, start setting aside at least 10% of every dollar you make. Unless you are absolutely broke already, you should be able to do that quite easily. THEN, once you’re used to 10%, bump it to 15% and then 20%. You’ll be amazed at how quickly the money builds up.

Guess what else builds up? Your confidence. Your abundance. Your optimism.

Somehow the world looks a lot rosier when you’ve got financial strength, and I want you to experience it.

Saving isn't the only component of building wealth, but without it, you’ll never even get out of the parking lot!

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