What Wealth Looks Like By Age! (Are You Actually Wealthy?!)

What does

wealth

look like? It all depends on your age, where you are in life, how successful you are with your savings goals, we cover all that and more in today's episode, I'm Brian Preston, the money guy, you're right Brian, I'm very excited because you know we did this. show a few months ago we talked about different levels of

wealth

because we thought that, like most things financial, there is a progression that you work through, we said, well, that was good, but we can take it even one step further deep. Take a good look at the wealth levels by age and it relates because the algorithm lets us know that this is a hot topic.

People love this information, but there is a big difference: a twenty-year-old may be jealous of

what

a 40-year-old has, but a 40-year-old, like a man on the moon, may be jealous of

what

a 40-year-old has. opportunity that a 20-year-old has, so we have to dig a little deeper so that people don't confuse those different levels of wealth based on where they are in their journey. toward financial independence, so this is one of those programs where we're going to have to hit this hard and fast, but I think it's worth going back and at least doing a review of what those five correct levels of wealth

actually

are. .

I love it, so if you haven't had a chance to listen to that show, we'll go over a quick summary, you know, level number one is the stability level, this is basically the level that says I can pay my bills. I don't worry about where the next dollar will come from. I have my base established. Yes, strategy number two. This is now. There is now a purpose behind every one of my dollars. Every dollar I have goes where it's supposed to go. the way it's supposed to go there I know what I'm saving and I'm

actually

doing it that's right number three number three is security this is not sweating the small stuff this is understanding well I've got things in place I'm in a good place I'm fine, moving on take that lot one factor take number four in fact number four is financial freedom we consider this do what you want when you want the way you want to do it that is financial independence and a lot of people do it and then the number five is abundance and this is a place where money takes on a different role for you, it's not the same as it once was before in life and this is, I mean, it really is.

I think it goes beyond just having enough. that you do things when and where you want, it's also like now you start to think about how your whole relationship with money is completely different and we talked about it now that there is a much deeper dive when we did our first program on the five levels and the wealth, but I think it's worth it. Before we move on to the age category now, I want to talk about how important it is to have a discussion about what the purpose of money is, what your why is, because if you don't have that and you fly through these.

You'll discover five levels of wealth and we've made content about this wealth that can actually be kind of empty if you don't have a purpose, yeah, and I think what we said that you sent to the preparation program is that it just does it. Sticky how many times we see people you start with as a weight loss goal say, “Oh, I want to lose 10 pounds,” that's a lot different than someone saying, “Hey, I want to lose weight so I can play with my kids.” or something like that. The rigidity factor of why is what will allow you to stay in both good and bad times and focus too much on whether you only have one generalized concept: I want to be rich or I want to make sure I have three million dollars without understanding what.

The reason is that with those three million dollars is that you could be preparing yourself not only to be a miserable person but also to discover that destiny was not enough for the adventure of the trip to bring satisfaction, an emptiness there from time to time. The last thing is that I think before we jump into this, I think it's important to remember to be generous. Yes, there is a reason. It's really funny how things fit into the culture and we always hear it said that it's better to give than receive. and it's so funny when you're a kid and you buy all your Matchbox cars and you try to order game consoles and stuff like that it's crazy, but as you get older it starts to trickle down and there's really something to this thing about being generous so make sure you understand the five levels of wealth, but also the right why, so that you really turn this into satisfaction, not just happiness, so the way we're going to lay this out today is what we want. to go through at each age 20, 30, 40, etc., what those five levels look like, what stability

looks

like, when security

looks

like, what a strategy looks like, because you will be surprised to know that they change over time and are transform you move forward in your financial journey so let's go straight to I want to talk about the 20's first because this is the structural engineering phase, this is where concrete is poured and we know the fact that concrete is so powerful that it supports skyscrapers. and all kinds of things, but there is a healing period where you know you pour the liquid and then you have a weight before it really has strength, so this is the stage where the delayed gratification of the discipline will start to give rewards, but you have to start with those behaviors to be successful in the long term, so to think about kind of a baseline, just starting out, the first thing we have to talk about is that level one of wealth is stability and If you remember, stability is staying above water. it's about having your basics covered and making sure you can pay your bills, so there are a few ways we think that manifests itself in your 20s.

This is the first in that kind of high-level top line: it's not living paycheck to paycheck. You know, when you start working you say, oh man, I needed to make ends meet or I needed to make it to Friday, once you start moving towards the level of wealth, we have some stability in your financial situation. You're no longer that person who has to rely on payment to get here and know that you're going to be able to pay your bills, yeah, and I think it's important to say that you probably won't conquer level one right away for everyone. of our 20 21 22 23 year olds who just graduated from college, you realize that when we talk about the five levels of wealth, the main thing at 20 is probably conquering level one, which is stability.

Frank, we'll talk about number two, which is the next strategy, but it's one of those things, know that this is your goal, you have to go from paycheck to paycheck to be successful and that probably means you're going to have tools like budgeting, that's right. We hate making a budget. It's not fun, no one likes to do it, but it's one of those prerequisites where you have to check the box so you can eventually move on to a cash management plan. Yes, what I think is so wonderful is that budgeting is actually a lot easier. now that historically there are worksheets, spreadsheets, apps, software websites, it's not difficult if you don't budget and keep track of where your money is going, chances are it won't be the case, it's just because laziness, put in the practice to have the muscle memory for good habits and good behaviors prepares you for all the other successes to come.

The second sign of stability is that you don't have any credit card debt. We just think in terms of if you're When thinking about pouring concrete, you want to get all the air out of there so that bubbles don't create. You have no credit card debt. If you are in the stability phase, you have recognized that this is not the way you want to do it. build your financial foundation, your financial future, well, I don't think we talked about this in the preparation of the program, but I know that working in growing neighborhoods, one of the most important things to be careful with is the local children breaking up trash on construction sites, I think credit.

Cards are like kids, neighborhood kids who steal things, put holes in drywall and everything else. You have to make sure you have protection because all credit cards have compound interest that works against us. Remember, when you're 20, we'll show you. one second, how powerful is it, you want it to work for you, so you have to pay off those credit cards monthly, but I think there is an even better level: you have to have a healthy relationship with debt in general, what do we mean by that? I have to understand how it works. I can't tell you how many of my peers I saw when they were in their twenties and they say, "Oh, I don't have a debt problem because I can pay the monthly payment and as long as I can pay." the 100 200 300 a month I'm fine, you don't recognize it, you have a myopic income statement mentality, you didn't really have a long term view of the balance sheet, you need to have a net worth mentality when it comes to debt and I quickly want to give any guidance on this so we don't get hung up on debt issues because I feel like we've created a lot of content recently on debt, but you want to make sure you get your financial ratios in order these are good benchmarks that will keep you safe number one is that housing must be less than 25 percent of your income, that's right, cars must be less than 8 percent of your gross income and then credit cards you know what the answer is: zero balance, which means that you are paying for these things monthly.

You're using this as a convenience, not a way to save your cash flow, not a way to fake success while your income grows. You are paying. these things are disabled monthly now remember what we're not saying is don't use credit cards, we're actually of the opinion that credit cards can be a fantastic tool in your tool belt because the rewards and the miles and all of those things, but you have to use them responsibly and you have to know if you can actually exhibit the behavior necessary to use them responsibly, because if it seems to you that someone cannot operate a chainsaw safely, you should get rid of them and also in this Cyber ​​world where everyone is stealing, you are trying to steal your identity, it also gives you extra protection.

Let's also talk about some habits that will help you focus on building this stability. It's because I said this and we recently did a show about the number one reason. That you're broke is to remind Americans, this is my tough love moment. Americans don't have an income problem, they have a spending problem. It reminds me when you go to a coffee shop talking about the latte effect, what do they always ask you? you're going to put cream in this oh the reason they ask you if you're going to put cream is because they want a little leeway they try to take a little bit they don't put so much coffee in there so you don't make it spill over the sides your life is of the In the same way you need margin you need a little extra room so always spend less than you earn to have the margin to save in the long term I think I think recognize that because A lot of times people say: well, I don't have a spending problem, but we allow that voice inside our head to convince us otherwise and we say things like, oh you know, I just graduated college, I deserve X, or I just had this happen.

I just got a raise. I should reward myself by doing X. You used a great sports analogy. Well, I just went through the Super Bowl, so I'm out. It was fresh in my mind. I think one of the most important things that happens next. the Super Bowl is that they threw Gatorade at the coaches at the end, well, I think a lot of college students make the biggest mistake is that at the end of the first quarter they have succeeded in graduating. college and somehow your friends are running around and throwing Gatorade at you just because just because you scored your first touchdown guys, that's not a long-term success, you still have three more quarters left to play this game that's going to be a failure, so Make sure you're not celebrating doing touchdown dances, well you just achieved your first achievement, what do I mean by that?

Don't go out because I have a lot of case studies in my personal life and then seeing it with clients and other people is that don't Don't go alone with the new fancy car just because you graduate from college we see doctors, they don't, they move on from the beat up Civic, I mean, you know, the wills are dropping to the $80,000 BMW, don't ask, oh, you know, even though you have six figures of student loan debt here, don't do that, don't go for Gatorade just because you made it through the first quarter, you stumped Gatorade when you won the game, so don't cut the corners of Success, yes, the most important thing when you think about being in the wealth level stability stage in your 20s is that this is where you recognize that the Discipline, determination, and understanding of postponing both financial and lifestyle gratification can have a huge impact on your life. long-term financial success once you've really mastered that idea, you've mastered that concept, then you can start thinking about moving into the level 2 stage of wealth, theDelayed gratification is your friend, so let's take a turn now, let's go to strategy number two, which is this strategy.

Do you know where you are saving money? How to save money. Basically, your army of dollar bills is doing what it needs to. This is the question. However, when I talk about an army of dollar bills, we know how powerful they are, but I really understand it. a picture when i was 20 i didn't have an army uh-uh we got malice you got team a and your hope and your team a really are special operators like ba Baracus who's out there kicking ass and making things happen but it's one of those things that you have to remember and we tell people that we want you at this stage to save twenty to twenty-five percent for their income, now there are probably many 23-year-olds, maybe even 25-year-olds, who save between 20 and 25 percent, that sounds a little aggressive, so we understand that first you're going to have to crawl and then you walk and then you run, so what's going to happen is maybe you start with employer matching, maybe you make sure from working six to eight to ten, but this is the key point every time you get a raise.

I don't want 10%. More of that salary increase will go into savings. I want at least half of 50% because I bet you have no problem increasing the lifestyle. Let's make sure we don't have trouble increasing savings in the dollar bill army. Okay, you said it. Perfectly strong, there is this. progression you have to crawl and then you can walk and you can run you can run I can't tell you how many friends I have who started crawling, or started funding their Roth to max it out, or maybe they didn't get their employer they matched and never switched, you know, that was it.

So the behavior they exhibited there at 24 was the same as they did at 29, they didn't really allow their words to grow the same way their lifestyles grew with you. You have to recognize that if you want a solid strategy in your 20s, you have to recognize that not only do you need to be a saver, but you also need to be a saver who is getting better at saving. Now there's a rocket fuel moment here because I want to attract people. I got excited and then I put some numbers on this, but Bo, the most important thing that 20-year-olds have on their side, I mean, it's the most powerful thing, is Tom, because he's rocket fuel, to make sure that he can obtain your financial independence.

This is the part where you're a 20 year old looking at your 40 or even 50 year old peers you probably turned a little green your envy envy of his fancy car his life guys are envious of what you have called Tom's right Bo, let's talk for them because a little goes a long way, not a lot. I draw them this way, let's give them some numbers that are exactly right, you've heard us talk all the time about this 88 times more concept, we've always said that if you're a 20 year old, start saving every dollar you save until can become $88 when you reach 65.

Everything we said, let's go a little further because people wrote to us saying, "Well, hey guys, I'm 24 years old is my number 88 or I'm 28 years old is my number 88. We actually came up with a solution for you, if you haven't had a chance, go to our resources page, go to money guy.com and check out the resources and we actually have a money multiplier spreadsheet, yeah , PDF, fill in the blank, deliverable, a tool for you, yes Pierce, you're basically a go, you were a thesaurus, we just went over all kinds of things, Rebe would be very happy with you, carry on, so what ?We said okay, let's look at all the different ages and see what the wealth multiplier is.

We want to take a little snapshot and show you how powerful your dollars can be when you're in your 20s and what you can see with a 20-year-old. We always say that a dollar at age twenty can become 88 dollars when you reach 65, but look what happens, this is powerful stuff. I've gotten a lot of comments on YouTube saying, stop using 20, use 25 because that's what a lot of us actually put our stuff together and it's a more workable number, so we did it now instead of, but by the way, we were a step further, we're going to do this for decades for everyone, we actually show you what 21 22 23 is all the way. and this is what we did, you all know, at 20 years old: we tell you it's a 10% rate of return, but we actually reduced it by 1/10th of a percent every year, so you can imagine when you reach 30.

It's the nine percent we quoted, so we've discounted a tenth of it each year. What I can't believe is that a 20 year old is an 88, 88 times multiplier, so every dollar he spends or saves for his 65 year old self could be the equivalent of 88 dollars look what happens for the young man of 25 years 44 dollars is reduced by half just in that 5 year period the value of that money is reduced by half and so on but look I don't want you to panic when you listen to this because if You are listening in terms of podcast because we have a space here.

Yes, a 20-year-old not only needs, he only needs to save $95 a month to be a millionaire when he is 65. 25 years old, that's one hundred and fifty. Eight dollars is still awfully low in the grand scheme of things, if you look at the percentage of your mind you have to contribute versus what it might be worth, most of it will be appreciated, which means your army of dollar bills will be working harder than they otherwise would. Don't really waste this opportunity, so if you're someone in your 20s listening to this, you're like, "Oh man, I'm 27. I wish I started when I was 22." Yes, it's great to admit that.

Go ahead and start now because The Full Time Equivalent, Daniel, reminded us in the buildup to the show and said, hey, you just have to tell people, this assumes you start spending that money at sixty-five, yeah, If you are someone who is twenty-five and you don't start spending money. up to seventy those dollars can become 88 so that you have time on your side when you are young and then the other components that we put here are tools that are useful to automate your financial life, go ahead and start the habit. I didn't start until I was 31 and I really regret that.

I started making an annual net worth statement. If you start doing that at 20, by the time you're 40, you'll be doing backflips. I actually had that invisible hand tool that will motivate you for the future and then here's something I put in the show notes. I want you to shine a light on your basic life. what do I want to say with that? I've already discovered you guys, and he said that Americans don't have an income problem, they have a spending problem, well, a lot of people are going to be surprised, hear that and say, well, basically I want you to eat ramen noodles every night. , I want you to sit in your apartment, that's not what I'm doing.

I want you to have a spectacular 20s. I want you to go out and make memories and do things that you will remember forever. Be very happy and satisfied with how you spent your decade, but this is what you need. Do it cheap, I mean, you were going to visit state parks, you were going to do things that don't cost a lot, that's why I say make your life basic, which means you're not going to spend. a lot of money, but you are going to create a lot of experiences that are reasonable for you to look back on with those good, warm fuzzies because I will tell you that I have a lot of travel things that I did when I was 20 and that we are Made on the cheap, not because it was a cheapskate but because they were necessary because I just didn't have a lot of money lying around, I was already assigned somewhere else, but those are some of the best memories about it because remember memories bloom.

Get Better with Tom Why do you think successful people in their 40s and 50s get that glazed look in their eyes when they think about how fun it was not to eat steak every night, trying to figure out how they make a little bit last tremendously? Enjoy those moments, enjoy the phase you are in because there will be opportunities to overcome it and live like no one else at some other time in the future, so if you are someone in your twenties, one of the ways you can know if you are there, Square and that's the strategy phase, is that you're following the order of operations of the money type and Reba can, we'll put a link to this in the program, we'll put a link to the order of operations, but really what she's focusing on it's focusing on steps number 1 through 5, if you had the opportunity to go out and make a list, and that's covering employer deductibles, you're taking care of high interest debt, you have your merchant. set aside and then you're taking advantage of tax-free opportunities like your premium like your HSA.

If you are at one of these five levels, there is a good chance that you are at the strategic level of your wealth creation process in your twenties. and everyone watching this in the YouTube world sees that we've only highlighted one through five because that's probably what they're focusing on in the 20s, but you know there's more to come in the future years, yeah, like that Let's take a turn now, let's talk. about the third level, which is security, through which we have achieved, you know, the kind of stability, we are paying the bills, we have managed to build the army of dollar bills with, you know, our strategy, but now Let's talk about security. that means yes, security is not sweating the small stuff, so one of the things you might be asked, well, I'm still early in my journey, so what not sweating the small stuff looks like is err, how do I know if I can't? sweating the small stuff when I'm 20, well actually you're trying to run as fast as possible to achieve a 20 to 25 percent savings rate, that's the number you're running at that way, this is what What happens when you get to 20 25 percent going back to my coffee analogy, if you can get there early and know that when you're 30 you'll have a 25% savings rate, then you won't be stressed if you go on vacation if you shop, if you like going to Starbucks several times a week or having guacamole while you're at Chipotle, even though it's a complete scam, I mean, you can, you can do all of that without stress because you're paying yourself first. automated, that's the big part that we're trying to build in security, it doesn't mean that you're just not worrying about the little things, like you can travel anywhere and do things at any time like it's not like that.

It means you're now building enough of a margin to feel a little satisfied and establish satisfying rewards for your sacrifice while you're younger, so let this be a bit of a check if you're someone who's drinking Starbucks or adding guacamole at Chipotle and doesn't. have done, you haven't reached the 20 to 25 percent savings level, maybe you need to go back and reevaluate level number two, the strategy, and make sure you check the boxes there, freedom number four, this is you know, when We talk about freedom, we are actually talking about financial independence. Now I think this is something you're laying a foundation for.

Remember that this is the structural engineering phase in which you are pouring the concrete. This is deferred gratification, discipline, understanding everything healthy. behaviors that come with it, but you probably won't have financial independence in your 20s, that's exactly right, you should start thinking about what that means and am I doing the things to get me there? Your goal shouldn't be to get it. Your goal should be that at the end of your 20s you recognize that you are on your way to it, that you are moving towards it and then step number five is abundance, now look at abundance, legacy, planning all of this is something to aspire to. for the future. when you're 20 you won't be there when you're 20, but we want to give you to go ahead and post that so you're not left wondering because I think sometimes people do not know where you are.

It's supposed to be that way. I don't want you to compare yourself to other people. I just want to know where you are on your journey so you have the right perspective. That's the important part of this, yes, and I think very, very much. 20 year olds are trying to achieve abundance and trying to achieve financial independence or at least it seems like you are getting stressed. Focus on the first three levels of wealth. Focus on getting your asset base stable. Focus on having a strategy in place. and then if you have those things in place, you can start to have some security as you move toward financial freedom, as you move toward financial abundance, a lot of the joy is in the journey, not the destination, The sooner you recognize that at 20, the happier you will be.

It will be so that's the big closing of the 20's and now I want to turn, I want to talk about the 30's because this is the part where we have the foundation poured, you know, so the concrete is them. As for the foundation, we need to frame the walls of this thing. We have a house that we know of our financial independence that we are building. Your 30s is the stage now where we'll put the structure on top of this thing.I want to talk about stability first, which is that you should be doing all the things that we covered for 20-year-olds that you should have already achieved under stability, which means that this is, you're not having any trouble paying your bills. not living paycheck to paycheck you understand debt you have healthy financial ratios and then you are establishing solid financial habits you just said healthy financial ratios again your housing does not exceed more than 25 percent of your gross income your car payments or your debt car no Do not exceed 8 percent of your gross monthly income and then recognize that credit cards must have a zero balance.

If you are doing that, you have covered the stability that you should have learned when you were 20 years old and We are also not leaving behind emergency reserves for risk management, this is if you have children, have some estate documents for them, life insurance, if someone counts on their income, by the way, we like the term without going too deep into it and then making sure that they even have a disability. safe or at least checking the box disability is something that really got me because what I recognize is that at 20 we feel invincible, yeah well we'll be honest, at 30 we still feel invincible but now there are other people counting on us , we have to come to the reality that we may not be, so let's make sure that you have those right risk protection measures in place, right?

And that's how you'll know it in your mind. Okay, I've done the stability. piece now I can start thinking about the strategy piece, so pivoting the strategy here is what saves twenty to twenty-five percent. I'm willing to give the grace to twenty-year-olds that this is probably an aspirational goal because remember we're talking about you. to crawl, walk and then run. I'll tell you when you're 30 years old. You need to save between twenty and twenty-five percent. It is no longer an aspiration. You should definitely be in the strategy phase or level two of where you are. your path to financial independence yeah you said it perfect and before shipping right you said it's not a goal now it's a habit yeah and the reason it's a habit is because this is the last stop on the train of easy money, so let's scare them a little.

A bit with real numbers, this is because we know that every 20-year-old knows that their money is worth eighty-eight times more, which means that every dollar they save or spend has the potential to be, by the time they are sixty-five years, the equivalent of eighty-eight dollars we also know from the previous slide and the decline and the rate of return that you expect as you get older, take risks, is forty-four dollars for a twenty-five year old who spends one dollar, What happens to people in their thirties, yeah, once you hit thirty, your wealth multiplier is actually twenty-three, so that's still super exciting, what that means is that every dollar you save to thirty years can turn into twenty-three dollars when you turn twenty-six-five, so there's still a lot of juice, but look at what happens as you go over 30 and again, if you want to see this, check out our website Money Guide com, go to a resource page, this is actually a resource available to you. you can download it share it with friends we want you to have it but watch what happens as the wealth multiplier moves through time it starts at twenty three when you're thirty well when you get to thirty five it drops to 12 and by the time you reaches thirty-nine, now you're in single digits, it's down to eight, so when you hear that you might be thinking oh, that's sad, that sucks, doesn't it, you should think more about that, have I done the job? hard in my twenties because this is where it gets really emotional if you're thirty and you really failed when you were 20 and maybe you've saved a hundred thousand dollars by the time you're thirty, which is amazing, that hundred thousand dollars without If you save a dollar Plus, you have the ability to become $2.3 million.

It's really the last stop on easy compound growth, so as you'll notice once you hit 40 you won't see double digits on this anymore, that's why pay attention, we want compound interest to work for you, so it's important get to work now. We said this in the pre-show and I think it's worth it because that's why we say it's the last stop, even for a 35-year-old man who is younger than you. I have to fund a Roth IRA to be a millionaire, so which means five hundred dollars a month, so at four fifty-two it's still possible. I don't want them to get overwhelmed thinking we're passing up the opportunity to become seven-figure people. rich, but it's one of those things where you just need to be deliberate, let your money work for you because it's the last stop at age 36, all you have to do is max out your Roth IRA and you'll be on your way to becoming into a millionaire when you're 65, I think that's quite a bit of power, it's powerful, especially because the next point is that you now have 10,000 hours and you're gaining traction in your career at this point and that's why we believe that the strategies exist because you have the hours invested you are no longer learning your trade it is no longer a lucky job you are now working on a career make that happen make it something that is an asset to your financial success yes, I think that is a great step forward A really important indication Why you are in this strategy phase is that it is not just a job.

You said it perfectly, but there's actually more to what you do on a daily basis and you're actually using that to move forward and then I think the other thing that happens psychologically in your 30s is that now you start to say no, not out of necessity but out of necessity. discipline, yes, in your twenties you have to say no to a lot of things because you just can't afford it and you know it's a money pit right when you're 30 maybe you have the money to say no, no, I'm not buying the car luxury because I have other goals.

I'm not going to increase the house because I have other goals, you make those decisions. out of discipline rather than necessity you know it also keeps you don't keep up with the Joneses just don't look at Joe Blow on the street because Joe Blow is probably broke crying at night and putting himself to sleep save the sexy cars for when you're a little older you need those dollars working for you that army of dollar bills is so powerful don't screw it up and this is also the part where you said it best we talked about the 20's how consistent are you both because there will be an opportunity for you, a lot of people, you said, a lot of your friends started saving as a Roth IRA or started part funding it especially when they were 20, but then you look at them when they're 33 and you still have the same funding levels, don't do it, this It is your opportunity to be consistent with your savings goals, but also to be consistent with your consumption, don't let someone just because you can do it doesn't mean you should love that security number three.

This is level three of where you are with asset security. I hope you remember that I said the bad word about the budget. No one likes budgeting, but hopefully you're over 30 if you're already saving 20 to 25 percent. Now you can move to a cash management system, you are now using what we call forced scarcity as you get salary increases, you are simply setting up the automated financing system to continue to expand your opportunities towards financial independence now. you might be saying, well, that sounds a lot like the strategy you're talking about for scarcity and that kind of thing, why the hell would you put that in security?

Because one of the things that happens in your 30s and your 30s is very different than a 39-year-old, if you know you're four short, if you know you're saving twenty to twenty-five percent, then maybe it's okay to do other things to spend in other ways and not have any guilt. to say oh, I'm doing what I'm supposed to do or I'm making my money going where it's supposed to go if you're short, it frees you up a little bit to be confident that it's okay to spend on whatever you want to pivot to maybe because hopefully , like I said, stage three is you're no longer sweating the small stuff and the reason some of that is happening and I think this is probably an indicator of success, you're probably reaching the Pro level. you know , a comfortable range with your income, that means your income is over seventy-five thousand dollars a year, that's the threshold when they've done all the research, happiness because the basics are covered, so let's make sure we're doing good things with that you're probably also at the stage now that you, as we call it, bought the farm, got the house, the kids, the spouse, yeah, so you need to be, we can also call it, that's the nice way of saying, too We call it the messy middle. so it's okay if you feel uncomfortable or feel like there's not enough money or enough hours, you're in the messy middle and that's completely okay at this stage too, remember now that you're 20 as you build your dollar bill army.

You're assembling your gang of misfits or, as you said, the A-team, the now 30-year-old stuntman. Hopefully, your army is starting to act like an army. You're starting to see it grow and grow, so now your portfolio size is increasing. to where you are at some significant levels, it's not just about what you can put together on the side that's exactly right and then what is, if we talk about the financial order of operations, how many of these things should your 30s achieve, yeah ? obviously you're 20 years old, if you're doing it right you're going to want to get from one to five, we think at 30 this is probably where steps number six and seven happened and just to refresh your memory, step number six is ​​to maximize your plans. retirement, so not only are you getting the match, not only are you doing, but now you're maxing out the simple IRA, maxing out the 401k, whatever that is, and you're not just building up taxes and pre-tax assets or taxing or in a tax-deferred asset or tax-free asset, you might also be opening like a brokerage account saving that third dollar of taxes and are starting to consider building up some sort of tax diversification and a nice chunk of security just because We want you to keep track, so it's not just dreams floating around out there, you're actually keeping charts of things, net worth statement, this will allow you because how can you keep track if you're maximizing your options? retirement or how much?

This is a tax deferred after tax or a tax free net worth statement will be your friends so don't waste that opportunity and that will take you to stage four of your path to wealth is freedom steps yeah, financial independence, now look, we. Still, this is one of the things we have in our 30s, this seems like a great aspiration. I don't think there are many people who really know where your money is working for you, which means replacing expenses and replacing what you earn, but it's one of those things where we can at least start talking about this, yeah, I think which is something that's really interesting: you've heard us talk about this before, but we think that when it comes to building your army of dollar bills, there are sort of three. phases to know your army is where it's supposed to be.

Phase number one is that your army has gotten so big that it actually makes more than you can save in a year, so if you're saving $10,000 a year but one day you see that your portfolio made ten thousand, you're like a sacred cow, you know he saved more money than me, that's phase number one, phase number two is that your portfolio actually generates more than you spend in a year, so if you know that they spend $2,000 a month, you recognize it . well my portfolio made $24,000 this year, holy cow in the third phase it actually replaces your income, it actually grows to the point where it literally works harder than you work to generate wealth for you and your family, so in the 30s because you're saying there are already three phases of wealth you're saying number one is probably the bar, which means your army of dollar bills has reached critical mass size where it's big enough to that in a good year it can grow more than you probably say.

Say it's a contribution, so it's a powerful thing and it's really good, and that takes you to level five or stage five of your walk, what level of wealth are you towards? ? Their number is abundance in this arch. I still don't know how many years they have turned 30 because abundance means money you are simply at a different level of relationship with money you don't worry about it you don't have to think about it it takes on a different meaning in this that look I don't I want to get involved with the trolls and I'm nervous about what I'm going to say.

NoWe talked about this in pre-show preparation, but I have a few counterparts who aim to achieve financial independence by 30. They're part of the group. fire movement they want to get out of the workforce incredibly early which I think is really interesting if someone falls into that field, you're most likely going to stop in the face of financial freedom, you're probably going to stop, well, I can pay my bills. and do my thing, there's a chance that if you go out that early and try to achieve abundance in your 30s, it's going to look a little different than what we define as true financial abundance.

Well, I think it's also one of those things because I'll group four and five, freedom and abundance together into this is that there are some pretty popular bloggers. I've even followed them for a while, they did this when they were 30, yeah, and then you know what happened, the half mess half screamed. them a little bit and the fact that kids ruin everything, uh, you know, kids ruin everything, so that's what I would just challenge my thirty year old kids. You don't know how much your life is going to change between your 30s, 40s, and 50s. Think about this: You want to make sure you're implementing all the steps in your action plan, but you're probably not filled with abundance yet, but At 30, sir, you will begin to recognize that you may know in your grantees abundance or This is a pipe dream, but at 30 you begin to see, man, this is something I can get, I can't achieve, I just have to keep the path and keep doing the good work, so now we can do a little Brian self-reflection because Let's achieve what financial success will look like when you're 40.

I can still claim 40. I'm having at the ladder parties you've seen most of of this decade, so you can really share wisdom. Oh, that's it. Wisdom, experience and mistakes create wisdom, so I can. I can share some of that, but this is the stage where you are at the point of seeking satisfaction. This is where you are starting to have some successes, not only financially but also in your career. getting like I said wisdom because you've lived enough life you know what works and what doesn't work so this is the part we want to talk about, where are you in your five stages of wealth?

This is the dream really designed to be short-lived, so of course, Level number one is stability, stability like you, stability, that's a funny word, it's stability, as you can imagine, those are all the things we talk about. between your 20s and 30s are healthy ratios, do not have more than 25% of your cash flow allocated to housing, not if more than 8% is allocated to cars and you do not have credit card debt, understand that its risks are covered, you have life insurance, estate documents, disability insurance, and emergency reserves, you've mastered the muscle memory of cash flow management that you probably don't have.

You don't have to budget anymore, yeah, because you know how to do strength care, so you know how to manage cash flow, but here's something that we think that with the changes at age 40 you've probably reduced your balance sheet to where, At least, at the end of your life. At forty you probably have some debt left, you have some debt left, well that's your low interest mortgage debt, we think it's actually pretty healthy. I'm okay, you know, here's a reference point that we share all the time and there's some math behind it. 45 don't focus on low interest mortgage debt we want your army of dollar bills you are increasing growth working for you over 45 get that debt out of here we want you to be completely financially independent meaning you have no obligations or liens you they impose and that's debt, so that's fine, but this is the phase where you're 40 and you're probably going to start paying off the mortgage debt and then I think it's a lot of fun, the pre-show preparation, brown, we were talking about the twin, it's like, yeah, man.

I know when you're in your twenties it's easy to die for a hundred dollars at a time, yeah, and you're like, if you think that's bad, wait until you're 40, because you know a thousand. I remember when I was 20 years old and I even import parts of my early years. 30 thousand dollars if someone walked up to me on the street and gave me a thousand dollars, it would have changed my situation, then you see you get your 40, you can't make $10 mistakes. $100 mistakes, you're starting to make a thousand. -Dollar errors because this is the part where the lifestyle changes, you're thinking, you know what that mortgage seems small.

I'm at the point where I could afford to go to a bigger house, a nicer car, you just need to make sure you understand why because just because you can flex doesn't mean you should flex, this is just not where you can make mistakes. errors of thousands of dollars. Such a strange analogy to me because I operate under the assumption that if you can ever flex, you certainly should flex, we're not. Speaking of breaking an Arnold Schwarzenegger pose that lets us go from stability to strategy for your 40s, this is where I think I hope you had it.

I've shared it often is that I had some goals in life and my 30s. I wanted to cross it, you know, when I was thirty I wanted to hit six figures, when I was forty I wanted to be seven figures liquid, so when you think about it in those terms , you probably need a co-pilot, this is when you might want to. a financial advisor to help you with what's going on with your finances, yeah, you know, we think there are a couple of different times when it makes sense to hire an advisor and this is one of the things, or the size has become so big that you start to feel nervous or maybe you have so many things pulling you in so many different directions that you don't have time to be able to do it or maybe you just get complicated you say this all the time that success generates complexity that you don't just look for it. you take it out and you don't have to go looking for it, you find it, you trust me when you're 40 years old.

It's interesting how there's kind of a confluence of the three things that start to warm you up all at once, so one of the things that we're going to make available to you guys, like if you're in your forties, someone's thinking In hiring a financial advisor, if you haven't had the opportunity to visit our resources page, you should. to the calm money guide, go to resources and we are actually equipping you, if you are looking for an interview, we will make a doula available to you before you have 8 questions to ask your financial advisor, so that you are there to that I can follow this. it will allow you to understand well, what this person does, how he does it, what are the things that I should know before making this decision, this is free, it is available, it is for you, it is available, so go check that part and I think That's a good pivot point because you're going to have some important talking points, we're hearing you're 40 years old now that your army of dollar bills has reached this level, you're starting to figure out the strategy that you're trying to make sure what are you doing.

This is correct with the co-pilot and we've talked about mortgage debt and other things that come into play, although I think it would be very helpful for people to understand when we talk about the wealth multiplier, how does that work? Because you're going to have strategic decisions that You're going to have to accept that when you're 40, yes, it feels good emotionally to pay this here or do this here, but it may not be optimized, so it's good to know what your options are, yeah , again if we are. I'm going to look at the wealth multiplier again, you can access this by going to the resources page in the money guide.

Calm a forty-year-old person. Every dollar they say can still turn seven times when you reach age 65 now does. it decreases over time in your late forties to 49 it only triples and I say it only triples, it sounds a little silly to say it, but you add that you mention very easily to Brian that you know you had a goal that at 40 you wanted to have. a million liquid dollars, well, looking at these numbers, if you reach that goal at 40, you are on track to have seven million dollars when you retire, if you have one million dollars when you are 49, you are on track to have three million dollars when you retire so that your money is still very valuable is a question of how much of the hard work you have done to build that army they can start working for this is the perfect example of why People in their 20s should be careful when looking at 40-year-olds and 40-year-olds;

You will be very proud of yourself if you really work hard while you are younger because it is hard to feel sorry for a 40 year old. something of a year if you've reached seven figures because the multiplier effect, although not that big, will be enough to put those inflation trolls to bed, you'll definitely be in a great place and then this is the part that you already I talked. about flexing just because you can doesn't mean you should make sure you don't put a price on what creates success because there are things that if you keep elevating your lifestyle you can get to a situation where you put a price on yourself. happiness and that's the part I'll tell you by the way even though my income increased when I was 40 I just stopped swimming against the tide it's okay if you make more than many of your neighbors it's okay if your house is not as big as it could be I'm sure there's more to money than how much you can spend on it, so I want you to know some of what's happening with the strategy at 40, yeah, and then I think the last thing you said, Brian, is at 40.

If you should have still been doing this when you were in your 20s and 30s, but if you weren't in your forties, you certainly just start taking the temperature of your goals, you need to start evaluating whether I'm really on the right track, ahead of the curve behind the curve and one of the best ways we think you can do it is you should track your net worth statement annually and use it like a CFO, I mean track how much of this is your liquid assets, I want I mean, how much of this is it? actually, it's going to be something that can pay for replacement expenses and replace my income, you know, and how the allowance is being set up, yeah, because we know you can be a wild person in your 20s and 30s, but you start to think about the risk because you are I will land this plane in the next decades and then what do you need to live on?

I'm always surprised when I ask very successful people what their household burn rate is. Many people don't know this, so get started. figuring out that a net worth statement is going to be a huge foundational component in that process is looking at, if you don't know where to start, you're like, I have no idea how to do a net worth statement, get out to the money. Guy com download our 30 minute financial plan. In fact, we included a template for you, so if you want a net worth statement, you can grab it, use it, and figure out how to shape it to your liking.

Go find out what's available, it's free, it's accessible. for you, so now I want to move from strategy to short safety and limb safety is where you're not sweating the small stuff, but what does that mean for a 40 year old? Yeah, I'm actually curious to know who doesn't sweat the small stuff. bad little things, look, go check out our content about my transition from being cheap because there was no one thinner with money than me to now not being cheap because it's one of those things where you lose the latte effect that you know you don't you are sweating if you want to go for coffee several times a week if you want to do it you already know how to travel or I will even tell you that this is the phase where I have driven all cars for 10 to 12 years Bona Tesla when I was 40 years old However , a lot of people get upset when they find out that you have two nice cars that you want, yes, but if you look at it in relation to the work that is done and the assets that work beyond the scene, I think it is perfectly acceptable to go. do things that bring you happiness, look for what makes you happy, focus on thinking about it because you know that you have automated and followed the steps before and you are not putting your financial future in jeopardy, why do we get angry at people for buying nice cars in your 20s and 30s is because you are skipping steps, you are taking shortcuts because it is actually detrimental to your financial future, it is not detrimental to my financial future to have this and I want you to have the same thing so you can do that , I think that's the part about safety, you don't necessarily have to sweat the small stuff, have you done it right?

I think one thing that I've seen you practice is that I've been dating you since you were When you're in your early 30s, do you remember, I mean, do you recognize that we've been dating for a long time and what if America is always just for tell your wife? Look, if we can push ourselves right now, you told him he was 20 years old. and if we can buckle up right now, we can take the throttle off on our 40, so just buckle up, we can take the throttle off right.accelerator, one of the ways you know you're in the security phase if we do your network. worthwhile statement, you look at what you have, you say you know we can't, okay, okay take off the accelerator, that's a sure sign that you were starting to master the safety level at forty, yeah, I mean , because this is probably the stage where you can think about vacation, you're traveling, you just don't worry about the little things that don't concern you, if you're ordering drinks, a dinner, that is, it just doesn't come into play anymore and You're probably at this point too: a seven-figure liquid portfolio and that and that really helps and this is the part where you'll start to question happiness vs. contentment.

There is a big difference. Make sure you understand that happiness means you can cover the basics. Satisfaction means you wake up. Every morning you feel like you are working to improve things, you really feel good about the direction of your life and that allows us to make the transition to freedom. Okay, this is the level of wealth where you know freedom means you're doing things on your terms when where and how that's financial independence and people like that this could happen at age 40 this bonus territory I don't count on most people because the reality is that most people don't mean to cross a millionaire status until they are 50 years old according to research, yes.

I think what's interesting is that what we see is that most people don't reach true financial independence at 40, but when you think about it, they can see the runway at 40, yes, particularly even the landing gear is down, It's okay, yes I know. that I'm going to leave the workforce at 55 or before 60 when I'm in my forties. I can start to see that taking shape at least at 40 and you should start to be able to recognize what financial independence looks like and if I'm taking the necessary steps. Or am I taking the steps that will get me there?

Well, I want to give because I think a lot of people watch our content and they're connected like us, they're financial mutants like us. I'll go ahead and tell you guys, it wasn't until probably between 40 and 43. This was the first time that my financial life didn't feel like chaos because there were always things going on, now always intact, no, really because I know that They're in that messy middle of 30 right now because it doesn't mean you're not saving in your 20s or 30s, it just means it's hard, there's a sacrifice, it's hard because you have kids, you have community, you have other causes and you know which is just a lot of things are pulling out of your back pocket or your purse. 40s is the first time that if you have done it right I feel like you no longer feel like you are in chaos, goals start to happen more easily and with much less stress no, I think you know this, according to the clients we work with , you know we talk about the three levels of our self building your portfolio becomes so big that it generates more than you can save and then at the second level it generates more than you can spend or more than your annual expenses and in the Third phase generates more than your income.

I feel like in the '40s we see a lot of people hit number two, where they could replace expenses, and they're even starting to teeter on that edge where maybe their portfolio could even generate more than what they make in a year and when, Surely, there are years of good financial performance. but it's very exciting to see your army of dollar bills reach a critical mass where you can not only manage to surpass what you can save, what you can spin, but also what you earn, that's right, man, that's satisfying things , guys, that's why we. call it free, so let's talk about ordering a financial order of operations, what steps need to be covered in this phase, yes, this is the part where you hate the last two orders of operation, you are reaching your future prepaid expenses, that's it. weddings, you know you're going to have to pay for them, that's college, those kinds of things that you know are coming and also this is the stage where you said the magic age you said was 45 when you reach 40 because the multiplier of wealth changes if you want to start paying off some of that low interest gambling debt to really focus on getting out of mortgage debt you're probably fine at 40 as long as you don't sacrifice your building just start doing it yeah I know.

I want you to think about your 40s, no, that's just me giving you a sentimental spitting game about how sentimental you are at 40, yeah, you know, I mean, it's one of those things that everyone knows I've become a lot into. further. sentimental at my 40 years, this is the phase in which I want you to think about creating those memories, the children will leave the house in no time, so make those years count and then for all my people who are part of the fire. movement that thinks they leave early, you know, we've done a lot of programs on these withdrawal rates, safe withdrawal rates are a big point of discussion, hear me out on this if you're one of these people who thinks you're leaving the workforce. at 40, you achieved freedom early, you get bonus points for that.

When we talk about safe withdrawal rates, you're probably thinking about threes, not fours and fives, because that's reserved for your 60s, your 50s, your 60s, you know, and even beyond. where you can get those higher safe withdrawal rates you need to think conservatively and put it into three sets a little bit differently if you're doing math on the napkin and you know what you need to live off of and just divide it by five and say that's the period, oh five, that's the portfolio I need. Math may not hold up in your forties. You may need to re-evaluate it.

Think about that copepod. There are a lot of distractions and a lot of things still happening. in your life, so you just want to make sure that you have the plan well defined and then this is the part where you know that some of that old man's wisdom is that you should know your wife because you will find the point where you are going to start to reach some of those financial goals, you will reach seven figures, you will get to the point where maybe there was a dollar figure that you always said you wanted to shoot for, you will reach it and if you don't I know why you will feel really empty and that is the part I'm just trying to share with you.

You will wake up with more pep in your step if you really don't, which gives you satisfaction and you are actually on the path to achieving it. that happens, so I would say what that really looks like, what that manifests at 40, is abundance, yeah, yeah, if you're at the point of freedom, you see what the Y is. I think if you're abundant, you can really execute along the way And without having to worry about where the money will come from or what I need to continue doing well, remember that abundant abundance supposedly means that your relationship with money has gone beyond the basics, can it replace my relationship? expenses and replace my salaries.

I will still tell you that I think this is aspirational even for those in their 40s, but they are probably starting to take advantage of some of the tools that come out of this. When I talk about the tools of abundance, I'm talking. about charitable gun donations I know I love the fidelity charitable giving fund cash balance plans if you have less money and a high income job and have the ability to save a lot of it because you just don't spend what you earn or even like deferred compensation, yeah, there's definitely high-level planning stuff and then this is part of it.

I know I said it in my 20's, I said it in my 30's, but there really is something rewarding about helping and supporting others, being generous, it's better to give than to give. receiving this is the stage where I think you're probably putting even more of that into action. I agree 100%, so it's 40. I want to close this out by talking about people in their 50s and 60s, what does financial success look like? like for people in their 50s and 60s, so you know it's interesting, we've been laying this out as we go through the different stages and we start to think, well, what does stability look like for a person in their 50s or 60s?

If you're thinking a lot about stability in your 50s and 60s, you should have graduated by now, those should have been the things your younger self figured out, so if you don't have the basics covered yet, you probably looked back again. on what were some of the things that I didn't do when I was in my 20s, 30s, and 40s and how might that affect what I'm going to do in the future, yeah, because we've always talked about some of the basics covered, are you in strategy? what comes next is, but if you were between 50 and 60 years old and you don't have if you live paycheck to paycheck, this is Goomer, you don't have an income problem, you have an expense, it's okay because Social Security is around the corner and that's what's set up, it's a social safety net for those who never made a lot of money, never saved a lot of money, that will be provided now if you're a high-income person in your 50s and you have these problems.

You have enough oh God and I just have to tell you that you may be working a lot longer than you anticipated yeah so we move on to the strategy and here's one I really think this is probably the easiest way to see the strategy inside. your 50s 60s you own your life you've actually reached the point where you don't owe anyone anything you know you have your debt covered and it's just out of the picture well what do you call yourself independent? If you have obligations, they just don't work together, so you have to find a way to be completely debt-free when you're in your 50s and 60s.

That's common sense for me and everyone else. Another thing you really need to start doing now is if you're in your fifties or sixties and you're moving toward retirement in the workforce, you need to make sure that this is one of those three four five six things. times and cuts once because it is very difficult to get the water back up the hill, so if you are someone who has not partnered with a team that can help you navigate, this might be the area where you should have a co-pilot. Someone to step in and help you look at long-term cash flow analysis, stress testing, and Monte Carlo simulations, so one of the things you can do is, if you're curious, learn how to choose a good financial advisor or a good companion. pilot, visit our website, money guy, calm down, go to the resources page we will actually have available for you eight questions to ask a financial advisor to know if you are hiring a financial advisor who can really help you navigate some of those difficulties in navigating things when you're fifty and I don't want to dwell on the issue because we have so many that we've done some shows like this, it's one of those things where you're on stage when you're in your 50s and 60s.

You're crooked, it's okay. I've been putting money into Social Security for years. What is the optimization strategy? What is the location of the assets? Know? I have deferred taxes. I have taxes after taxes. I have tax free. So you mentioned stress testing. You have to run some simulations on this and also how you are going to use your money to optimize it and I keep hearing about this act for sure. Roth conversion strategies, what does that mean? All of these things. A good financial advisor takes this into account. all financial life can check boxes on that definitely part of the strategy, yes, they can make sure that no strategy is left behind when you finish the game, when you finish the last quarter and that leads to number three, which is security, this is the part I will tell you that all the successful people in their 50s and 60s are petrified if the children are spoiled they are not going to be good because we know the statistics its second generation 70% of the wealth of the second generation simply evaporates yes, when You get to the third generation, the grandchildren don't even get to 90%, so you can quickly see if you have it.

If you don't understand your money well and how to treat it, teach these good concepts to your children, don't be stingy with yourself. don't be greedy because your children and grandchildren will have no problem spending your money, think about that while you are trying to figure out where I fit in with security because you should enjoy this because your children will have no problem doing so. true and a great sign of security or something that will allow you to rest easy when you are in your fifties or sixties, you are in the security phase, have your children figured it out?

We talked about The Millionaire Next Door. when we talk about the next men are next door all the time and we know that two of the seven factors of wealth that exist in there are four and five numbers four and five are that their children do not participate in the ambulatory economic air which means that it is not like subsidizing your children's standard of living and, in the same sense, they are financially successful on their own, they are actually gone, they are leaving home, if you can do those two things, you will. will allow you to rest much more easily when you are fifty and sixty, you know that little birds canfly, yeah, I mean, because a big part of this, like I said, references Millionaire Next Door World Tom, you have the signed copy here by Dr.

Stanley and the thing is That's what it is if you can grow and build your own financial independence without having to take care of your patients and then pass it on to your children, that is an incredible legacy and that is what we are trying to work towards and that leads to freedom. trying to figure out if I have it and this is where you did it you already mentioned it honey but you measure twice you cut once is there any reference point? Are there some metrics you can use? The answer is yes, what are some of the metrics you can?

Use it if you have independence and financial freedom, yes, here is a really easy one. Use the Millionaire Next Door formula, take your age multiplied by your income and divide by ten if you do, whatever that number is will tell you if it's an average. wealth accumulator, but we think you should strive to be a prodigious accumulator, so take that number and multiply it by two, so that age times income is divided by ten and multiplied by two, which should give you an idea of where your net worth should be or if you want take it a step further and you are between 50 and 60 years old, look at your annual expenses, like what you spend in a year, what it cost you to live and see if my portfolio represents 25 times that amount, yes, that will give you. you are a good indicator of how successful you are doing and then also look because we talk about the three stages of your dollar bill army, we talk about the first stages, is your dollar bill army generating enough to replace it?

What you save on your level two is, does it replace what you spend in a year? your living expenses in stage three is, do you replace what you can earn with your back, your hands or your brain, these things, should your investments be working to replace that? At this stage, between 40 and 50 years old, I mean, between 50 and 60 years old, you should be on the path to financial independence. I think you said something really interesting in the pre-show buildup, Ryan, is that you said what I'm worried about is the 50-six-year-old kids in IC who are like a ship without a rudder, yeah, think about that, we talk about this and that was a disaster, they think about that, okay, I know where to leave the workforce, but then I don't know.

What am I going to do next, yes, I know what I'm going to retire from. I've really thought a lot about what I'm going to retire to. Well, I think that's a big part of it because it gets back to that purpose. You're no longer worrying about happiness, you're trying to make sure you're empowered for fulfillment and a lot of that is making sure you have hobbies, you have friends, you know where you're going because that's a big part of your life. problems and we see it all the time people find it difficult to go from savers to consumers of their resources, they also have trouble going from I am a working bee to what looks like the next phase, you have to pay attention to the good news.

Although if traveling is your thing, this is the phase in which you reach financial freedom, one of the most important indicators, in addition to the fact that your money replaces what you can earn, you also do not worry about what traffic costs, that's right, so there's a lot of fun. things because remember that those memories bloom. I want you to go out and create and invest in experiences. If you're worried about spoiling kids, don't bomb things that rust, rot or disappear because you know, that's where decay comes from, go create experiences and memories, that's what freedom brings, that's what freedom brings. purpose, it will make you feel really good about things and that takes you to level 5, which is abundance, this is the new next phase. where money your relationship with money is completely different it no longer matters in traditional terms you don't have to work for money you don't have to do things just to pay the bills you've got it covered in spades Now we're trying to make sure this really brings fulfillment and legacy.

Yes, I think it's very interesting. We talked about this problem. Unfortunately we see people who have mastered financial freedom all the time. Financial independence. They are independently financially

wealthy

, but never. They enter into abundance because they have not recognized that they have won the game and they like who they are and where they have been with them to get there, they are still striving for something else that they have not recognized. really their purpose there, why they are doing the things they are doing well, most importantly. I want you to reach abundance and still like who you are.

I think a lot of people you know don't want you to be like that. Miser, that's why we make movies about Ebony's or write books about Ebenezer Scrooge. I want you to like who you are once you're through this whole journey, that's why we talk about wealth levels, what stage you're at, all of these things are supposed to be reference points for you to make sure you're making your decisions. measure twice and not skip steps so that you also have this heart of abundance that feels like a man. I have made many things happen in a good way.

Yeah, I think one of the things you have to remember when you're in your fifties or sixties and as you get older is that if you have abundance it's probably not going to be profitable or rewarding or satisfying. Being greedy now that we've done it has been a recurring theme, but I think we see this more often as people get older and maybe there's some fear or uncertainty that allows that to creep in. Well, yeah, it was probably two weeks ago with my pastor. on a gay sunday, this quote made me wonder if it's really a quote or is it something you always attribute quotes to albert einstein or benjamin franklin.

I mean, when I saw this, I Googled it and I don't know if. he actually said it, but there are a lot of people quoting this, so he must say it, so we'll just go with it, but the story that was shared was that John B. Rockefeller's accountant was asked how much he left behind. ohö, you know the question because it is asked in a way in which you are asking billions, you know what the number and the answer was, the smart accountant says that he left everything right because the truth is that then you know that I have to share .

With you he was watching some YouTube videos. It's amazing what the algorithm recommends to you when you go down these rabbit holes and it was all, if you never see a hearse following you, right, you can't take this stuff. with you, so you need to think with an abundance mindset, what are you doing to prepare the next generation? What are you doing to make sure that you are enjoying these resources that I have already shared in the previous things that your children and grandchildren will have? There is no problem in spending your money, so you better get very serious.

We'll find out what legacy looks like for you. Are you serious about making sure you check all those boxes? Yes, abundance is an exciting thing, it's fun to achieve. becoming a part of and one of the things that when you're in your 50s and 60s you'll have a wealth of experience and wisdom of knowledge, possibly resources, even figuring out how you can take those things and make the world around you. Just a little better, whether it's moving from being a mentee to a mentor or whatever that means to you, don't discount all the things you still have to offer the world even though you're transitioning to a different part of your life.

Yes, because it happens, obviously you can have charitable giving accounts and things like that, but you can also be a mentor, you can be a volunteer and an entrepreneur, if that's your experience, find some way, remember you talked about when we are in level 4 to people in their 50s and 60s, they're worried about what they're going to retire to, guys, they can, they can, that's the nice thing about being in control of this, is that they can write the story that they want, so you have all this wisdom. , be generous with her. I tell you that it is food for your soul and it will be something that will bring you the legacy that will bring you satisfaction.

Big difference between happiness and satisfaction. We want you to have both, that's right. and that's what you can take for granted and that's what will hopefully get you through these five levels of wealth by age group. Hopefully this was a deep dive where a lot of people check the boxes and I wanted to write. closing, but you mentioned it at least three times during the show, we have a resource page if you go to money guy com. I want you to visit our resources page because we're giving away, we're bringing it to you if you're watching this I can't believe these guys are giving away all of this there's even more wait there's more because if you go to our website we do the exact same thing we call it the cycle of abundance where you come and we give We give it to you for free, you come, you learn, you apply, it grows over time and then you will reach a level of success and this is where the problem comes, that is what I want you to have those moments of well-being wherever you go , I remember them.

The guys were the ones that I still listen to a decade later, they invested in me, they made this happen, that's where the cycle of abundance really hits the reward moment for us because you consider taking the relationship to the next level, so we threw a lot things. On this show I hope you're connected and we really appreciate everyone who is part of the Money Got family. If you don't have a chance to go to YouTube and watch the show, go watch it and make sure to subscribe to keep the counter running. Go to the website and we really appreciate you letting us hang out with you.

The money brought out a team.