WEBVTT - 5 Money Rules to Create a Rich Mindset 0:00:00.170 --> 0:00:03.440 Welcome to Building Billions, the podcast for business owners who 0:00:03.440 --> 0:00:06.980 are getting things done and scaling fast. I help business 0:00:06.980 --> 0:00:10.370 owners create billions of dollars in value over the past decade, 0:00:10.369 --> 0:00:13.640 and now I'm here to share the strategies that actually work. 0:00:13.670 --> 0:00:16.940 This show is for the doers, the ones solving problems, 0:00:16.940 --> 0:00:20.690 making tough calls, and building real value. If you're ready 0:00:20.690 --> 0:00:22.460 for straight talk on what it takes to grow a 0:00:22.460 --> 0:00:26.030 massive business, you're in the right place. Let's get to work. 0:00:27.380 --> 0:00:29.570 These five money rules are what allowed me to make 0:00:29.570 --> 0:00:32.240 100 million by the age of 30. They're the mental 0:00:32.240 --> 0:00:35.570 rules that separate rich thinking from broke thinking, and separate 0:00:35.570 --> 0:00:37.970 the top 1% from the bottom 1% of earners. And 0:00:37.970 --> 0:00:40.940 I genuinely believe if you can follow these five rules, 0:00:40.940 --> 0:00:43.880 you will create a rich mindset that will attract real 0:00:43.880 --> 0:00:46.070 wealth into your life. The first rule is to realize 0:00:46.070 --> 0:00:48.530 that there is already an infinite amount of money out 0:00:48.530 --> 0:00:51.170 there for everyone. You just have to want it and 0:00:51.170 --> 0:00:54.080 be ready to take it. So the mindset shift is 0:00:54.080 --> 0:00:57.860 that you aren't taking anything. There is no limitation on money, 0:00:57.860 --> 0:01:00.770 and there is more than enough for anyone who is 0:01:00.770 --> 0:01:03.260 willing to pursue it. To be honest, there are so 0:01:03.260 --> 0:01:06.920 many rich and successful people out there. Whenever I go shopping, 0:01:06.920 --> 0:01:09.200 whenever I've been to the south of France or into Greece, 0:01:09.200 --> 0:01:12.050 and watch the people who show up in these stores 0:01:12.080 --> 0:01:15.200 and buy designer clothes like it's nothing, I realize that 0:01:15.200 --> 0:01:17.270 it is quite literally a way that they view money. 0:01:17.330 --> 0:01:20.300 They do not feel guilty about pursuing wealth. They understand 0:01:20.300 --> 0:01:23.120 that there is always more money to be made and 0:01:23.120 --> 0:01:25.190 they can create it. And if you have the mindset 0:01:25.220 --> 0:01:27.680 of being able to create it, instead of thinking that 0:01:27.680 --> 0:01:31.220 you're pursuing money for selfish reasons or like you're taking 0:01:31.220 --> 0:01:34.220 it from somebody else, you are going to actually attract 0:01:34.220 --> 0:01:35.600 the type of money that you want to have in 0:01:35.600 --> 0:01:38.270 your life. Because what's so important to understand is wealth 0:01:38.270 --> 0:01:42.620 creation cannot coincide with scarcity. You have to maintain a 0:01:42.620 --> 0:01:46.790 mindset about growth and possibility and understanding that it is 0:01:46.790 --> 0:01:50.030 possible for you. In fact, money flows towards people who 0:01:50.030 --> 0:01:55.970 provide value, which means that becoming wealthier just means contributing more. 0:01:55.970 --> 0:01:58.870 When I was 19 years old, I was giving all 0:01:58.870 --> 0:02:02.350 of my time in the summers to going to downtown Portland, 0:02:02.350 --> 0:02:05.170 feeding homeless people underneath the bridges. I thought that this 0:02:05.170 --> 0:02:06.760 was how I was going to make an impact on 0:02:06.760 --> 0:02:10.030 the world. Natalie with 1 to 1 relationships, was going 0:02:10.030 --> 0:02:11.800 to be able to help all of these people until 0:02:11.800 --> 0:02:14.020 a mentor of mine asked me this question, what is 0:02:14.020 --> 0:02:16.540 the bigger impact that you want to make? When I 0:02:16.540 --> 0:02:18.250 thought about that, I wanted to be able to help 0:02:18.250 --> 0:02:21.760 millions of people and me myself. Giving my time under 0:02:21.760 --> 0:02:23.980 bridges was only going to be able to help dozens. 0:02:23.980 --> 0:02:26.200 So this started to get me thinking about the fact 0:02:26.200 --> 0:02:28.989 that in order to be able to make a bigger impact, 0:02:28.990 --> 0:02:32.860 you actually have to have resources. And there's no scarcity 0:02:32.860 --> 0:02:36.340 of resources if you know how to generate money. So 0:02:36.340 --> 0:02:38.800 once you've tackled your fear of making money, the next 0:02:38.800 --> 0:02:41.680 rule is to remove your fears around spending money. Figure 0:02:41.710 --> 0:02:45.700 out what your immediate reactions are to spending money. This 0:02:45.700 --> 0:02:46.960 is what I'm going to ask you to do. Pull 0:02:46.960 --> 0:02:49.300 out your phone, create a spreadsheet, or just write this 0:02:49.300 --> 0:02:51.010 down on a piece of paper. List out in the 0:02:51.010 --> 0:02:54.040 first column what it is that you want to buy 0:02:54.040 --> 0:02:57.790 or invest in. Then in the next column, write down 0:02:57.790 --> 0:03:01.060 your reaction to spending that money, and then in the 0:03:01.060 --> 0:03:05.230 next column, write down how you could positively reframe those thoughts. 0:03:05.230 --> 0:03:07.540 So for instance, if you want to invest in a 0:03:07.540 --> 0:03:09.880 course you're excited about this course, you see how it 0:03:09.880 --> 0:03:13.360 could benefit you. But instead of actually making the investment, 0:03:13.360 --> 0:03:16.420 you self-talk your way out of it and you start 0:03:16.419 --> 0:03:19.120 to think, well, what if my husband's going to be 0:03:19.120 --> 0:03:21.070 mad at me for spending this money? How could you 0:03:21.070 --> 0:03:24.340 positively reframe that to where your thought instead is? My 0:03:24.340 --> 0:03:26.380 husband is going to be so proud of the money 0:03:26.380 --> 0:03:30.220 I'm going to earn from making this investment in this course. 0:03:30.220 --> 0:03:32.410 So what we did there, we listed what we wanted, 0:03:32.410 --> 0:03:36.490 we listed the fear around it. And then the positive reframe, 0:03:36.490 --> 0:03:38.770 which is going to make you more bought in to 0:03:38.800 --> 0:03:42.520 actually using the course. I'll never forget seven years ago 0:03:42.520 --> 0:03:44.530 when I was at this conference and I was sitting 0:03:44.530 --> 0:03:46.480 in the front row, I was so excited to be there. 0:03:46.480 --> 0:03:48.220 It was one of the first conferences I'd ever been to, 0:03:48.250 --> 0:03:50.559 and this woman came on stage and she was amazing 0:03:50.560 --> 0:03:53.020 and talking about all of her marketing tactics. And at 0:03:53.020 --> 0:03:55.360 the end of her presentation, she made an offer. She 0:03:55.360 --> 0:03:58.860 said that there was a $2,500 offer for her marketing course. 0:03:58.860 --> 0:04:01.230 For every single playbook that she used in order to 0:04:01.230 --> 0:04:03.840 grow her brand for a split second. I was excited 0:04:03.840 --> 0:04:07.470 and motivated to make this purchase, and instead of staying 0:04:07.470 --> 0:04:11.400 excited and taking the action to make the investment, I 0:04:11.400 --> 0:04:14.790 got freaked out because I thought, what would Brandon think? 0:04:14.820 --> 0:04:16.800 Maybe I should use his money. I don't know if 0:04:16.800 --> 0:04:19.320 I want to invest my money because I made less money, 0:04:19.320 --> 0:04:21.360 a lot less money than him at the time. What 0:04:21.360 --> 0:04:23.640 if it sounds silly to him that I use this 0:04:23.640 --> 0:04:26.700 money for this investment and then just decided, nope, I'm 0:04:26.700 --> 0:04:28.650 not going to take any action? And I walked away. 0:04:28.680 --> 0:04:32.760 That is what kept me broke. It is a fixed 0:04:32.760 --> 0:04:36.359 mindset that you have to ask other people. You have 0:04:36.360 --> 0:04:39.180 to get some sort of validation instead of you knowing 0:04:39.210 --> 0:04:40.979 that this is what you want to do, that you 0:04:41.010 --> 0:04:42.450 are going to make the most of it and you 0:04:42.450 --> 0:04:44.130 can spend the money and it is going to come 0:04:44.130 --> 0:04:46.560 back to you. The third money rule is if you 0:04:46.560 --> 0:04:49.830 want to have money, you have to learn about money. 0:04:49.830 --> 0:04:52.530 I'm not here telling you that you should just go 0:04:52.529 --> 0:04:55.650 out and spend money on ridiculous things. No, you need 0:04:55.650 --> 0:04:58.620 to have goals and have clear understanding of what you 0:04:58.620 --> 0:05:01.349 want to use the money for and identify those beliefs. 0:05:01.350 --> 0:05:04.229 But then you have to learn about money. Learning about 0:05:04.230 --> 0:05:07.409 money is something that you should never stop doing. It 0:05:07.410 --> 0:05:10.920 starts with picking up super simple books like money for dummies, 0:05:10.950 --> 0:05:14.070 taxes for dummies. But my strong recommendation is that you 0:05:14.100 --> 0:05:16.950 continue to learn about money, and you continue to read 0:05:16.950 --> 0:05:19.920 at least one book a year about something in money, 0:05:19.920 --> 0:05:23.460 something financially related that you don't currently understand. Because if 0:05:23.460 --> 0:05:26.730 you want to build wealth, you actually have to confront 0:05:26.760 --> 0:05:29.520 what you don't know about money. You have to understand 0:05:29.520 --> 0:05:32.010 where to put your money. Once you make it, how 0:05:32.010 --> 0:05:34.529 does it grow without you actually being the one that's 0:05:34.529 --> 0:05:36.570 putting your energy and effort into making it grow? There 0:05:36.600 --> 0:05:38.279 are so many different ways for you to do that, 0:05:38.279 --> 0:05:42.120 and most people never get rich because they never bother 0:05:42.120 --> 0:05:45.090 to actually learn how it works. So here's my tip 0:05:45.089 --> 0:05:47.310 if you actually want to learn about money, this is 0:05:47.310 --> 0:05:49.860 what you do. You start turning on the news and 0:05:49.860 --> 0:05:53.150 you listen to people talk about money. At first you 0:05:53.150 --> 0:05:55.610 were going to have no idea what they are saying, 0:05:55.610 --> 0:05:57.589 but what you do is every time they say a 0:05:57.589 --> 0:06:02.000 word that you don't understand, like compounding interest or the 0:06:02.000 --> 0:06:05.780 inflation rate, you look it up. And so you start 0:06:05.779 --> 0:06:08.660 to learn the language of money, because you're making it 0:06:08.660 --> 0:06:11.150 a habit to actually fill in your knowledge gaps as 0:06:11.150 --> 0:06:13.340 soon as you notice them. The fourth rule of money 0:06:13.339 --> 0:06:18.589 is to invest, not save. So many people have this backwards. 0:06:18.589 --> 0:06:23.930 This broke money mindset of not buying Starbucks, penny pinching, 0:06:23.930 --> 0:06:27.950 cutting coupons, and restricting your spending will not make you 0:06:27.950 --> 0:06:30.979 a millionaire. Just think about this. If you were to 0:06:31.010 --> 0:06:34.070 look at a financial statement in a business and you 0:06:34.070 --> 0:06:37.400 wanted the business to make $1 million, you wouldn't go 0:06:37.400 --> 0:06:40.549 to the expense line and just start cutting all of 0:06:40.550 --> 0:06:44.990 the expenses. Why? Because the expenses don't actually drive the 0:06:44.990 --> 0:06:49.010 growth of the revenue. What moves the growth is actually 0:06:49.010 --> 0:06:52.250 selling something. It is in the creation of products and 0:06:52.250 --> 0:06:55.789 services that then somebody sells in order to generate revenue. 0:06:55.820 --> 0:06:59.960 Creating $1 million business has nothing to do with cutting 0:06:59.960 --> 0:07:03.170 your expenses. So if you take that and think about 0:07:03.170 --> 0:07:06.320 this in your own life and in your own income, 0:07:06.320 --> 0:07:09.440 you spending less money isn't going to make you a 0:07:09.440 --> 0:07:13.250 millionaire any faster. It's actually a waste of time. And 0:07:13.250 --> 0:07:15.770 instead of you. Penny pinching and thinking about all the 0:07:15.770 --> 0:07:18.110 ways that you can save money if you spent the 0:07:18.110 --> 0:07:22.010 majority of your time, think with 90% of your time 0:07:22.010 --> 0:07:24.620 only focused on how do I make more money? When 0:07:24.620 --> 0:07:26.810 you wake up in the morning, you ask yourself, how 0:07:26.810 --> 0:07:29.240 am I making more money today? If you don't have 0:07:29.240 --> 0:07:32.000 an answer to that, you should not spend the 90% 0:07:32.000 --> 0:07:34.280 of your day just going about the motions. You should 0:07:34.280 --> 0:07:36.080 figure out what do you have to do in order 0:07:36.080 --> 0:07:38.420 to make more money. And for most people, this is 0:07:38.420 --> 0:07:41.750 learning a new skill that has something to do with 0:07:41.750 --> 0:07:46.160 marketing and sales because similar to a business, the revenue line, 0:07:46.160 --> 0:07:48.980 you have to market something and then sell it in 0:07:48.980 --> 0:07:53.110 order to increase revenue inside your own skill set, inside 0:07:53.110 --> 0:07:55.690 your own income statement. What do you have to add 0:07:55.690 --> 0:07:58.960 to yourself that is creating production so that you can 0:07:58.960 --> 0:08:02.920 grow your income and not just focus on your expenses? 0:08:02.950 --> 0:08:06.100 We spend way too much time focusing on expenses and 0:08:06.100 --> 0:08:09.520 not enough time actually focused on the growth. I used 0:08:09.520 --> 0:08:12.280 to only buy things on sale when I would go 0:08:12.280 --> 0:08:14.830 into a store. I would be lying to the very 0:08:14.830 --> 0:08:17.620 back of the store where the sales section was, and 0:08:17.620 --> 0:08:19.750 I would just pick through any of the things that 0:08:19.750 --> 0:08:21.850 were on sale, and I would buy multiple things because 0:08:21.850 --> 0:08:23.200 it made me feel good that I was able to 0:08:23.230 --> 0:08:26.950 buy multiple things. Then I realized one day that I 0:08:26.950 --> 0:08:29.739 didn't actually buy anything I wanted. I just bought it 0:08:29.740 --> 0:08:33.760 because it was on sale. And this broke mindset was 0:08:33.760 --> 0:08:37.090 such an epiphany to me, because I didn't even realize 0:08:37.090 --> 0:08:39.640 that I didn't buy things that I wanted. It was 0:08:39.640 --> 0:08:41.950 more so like I was just checking something off the 0:08:41.950 --> 0:08:43.959 list and feeling good that I was able to buy 0:08:43.960 --> 0:08:47.229 a lot of things. And so now I only buy 0:08:47.230 --> 0:08:49.840 things that I like. And if it happens to be 0:08:49.870 --> 0:08:52.360 more expensive than the things that are on sale, I'm 0:08:52.360 --> 0:08:54.700 okay with that. But I don't have this thought process 0:08:54.700 --> 0:08:57.190 that I have to constrict and I have to save. 0:08:57.190 --> 0:08:59.980 And I can only use the coupons and the gift 0:08:59.980 --> 0:09:02.920 cards and the sale item things. The fifth money rule, 0:09:02.920 --> 0:09:05.349 and the most important money rule is to know how 0:09:05.350 --> 0:09:08.290 much money you actually want. But it first starts with 0:09:08.290 --> 0:09:11.080 actually picking the dollar amount. So this is what I 0:09:11.080 --> 0:09:13.690 would recommend you do. Similar to step two, I want 0:09:13.690 --> 0:09:15.520 you to pull out a piece of paper or open 0:09:15.520 --> 0:09:17.620 up your phone. Create a spreadsheet, and I want you 0:09:17.620 --> 0:09:20.710 to write down all of the financial targets that you 0:09:20.710 --> 0:09:23.530 have now. Financial targets do sound like a net worth 0:09:23.530 --> 0:09:25.660 target how much cash you have in your bank account, 0:09:25.660 --> 0:09:28.179 but it also sounds like the amount of money you 0:09:28.179 --> 0:09:29.920 want to pay for a house, the amount of money 0:09:29.920 --> 0:09:32.079 you want to pay for your cars, the amount of 0:09:32.080 --> 0:09:35.080 money you want to spend on glam every month, or 0:09:35.080 --> 0:09:38.560 at Sephora every month, or your clothes budget. Can you 0:09:38.559 --> 0:09:42.040 imagine a world where you actually have a shoe budget 0:09:42.040 --> 0:09:44.680 or a purse budget? This is what I want you 0:09:44.679 --> 0:09:46.990 to write down in the first column. Then I want 0:09:46.990 --> 0:09:49.709 you to write down how much these things actually cost. 0:09:49.710 --> 0:09:51.480 And then I want you to write down how much 0:09:51.480 --> 0:09:53.970 money you would need to make per month in order 0:09:53.970 --> 0:09:56.250 for you to afford this lifestyle. This is a very 0:09:56.250 --> 0:09:58.890 simple equation, because what you can look at then is 0:09:58.890 --> 0:10:01.110 how much money do you want to be making? Okay, great. 0:10:01.140 --> 0:10:03.180 How much money are you actually making? Pull up your 0:10:03.179 --> 0:10:05.130 bank account. I know it's not fun. I know it's 0:10:05.130 --> 0:10:07.260 not sexy. I know it's not interesting. And sometimes it's 0:10:07.290 --> 0:10:09.510 actually a little hard to do. But pull it up 0:10:09.510 --> 0:10:11.459 so that you actually understand how much money you take 0:10:11.460 --> 0:10:13.740 home every single month compared to how much money you 0:10:13.740 --> 0:10:16.290 want to make, and then understand what the delta is. 0:10:16.320 --> 0:10:20.340 There's a difference between today and the future. So in 0:10:20.340 --> 0:10:22.770 order to get to the future, you have to start 0:10:22.770 --> 0:10:25.290 thinking with what do I need to learn and what 0:10:25.290 --> 0:10:27.449 am I not doing right now in order to make 0:10:27.450 --> 0:10:29.309 this amount of money? That is all you have to 0:10:29.340 --> 0:10:31.950 figure out. And it is so freaking simple. One of 0:10:31.950 --> 0:10:34.050 my hacks for getting out of my head as soon 0:10:34.050 --> 0:10:38.160 as I create this list is I get in proximity 0:10:38.160 --> 0:10:41.520 to the things that I want. This has been so 0:10:41.520 --> 0:10:43.770 successful for me when I wanted to be able to 0:10:43.800 --> 0:10:47.100 have a pair of Louboutin shoes before I could afford them, 0:10:47.100 --> 0:10:50.699 I went into the Christian Louboutin store. I actually walked 0:10:50.700 --> 0:10:52.770 in the store and I tried on the shoes and 0:10:52.770 --> 0:10:55.530 I was like, oh, I like these. Oh, I don't 0:10:55.530 --> 0:10:57.660 like these. Oh, this is what I would want my 0:10:57.660 --> 0:11:00.089 closet to be filled with one day. And I got 0:11:00.090 --> 0:11:03.630 in proximity to the thing, because the more you write 0:11:03.630 --> 0:11:06.240 down something that you want and then you start to 0:11:06.270 --> 0:11:09.150 separate yourself from, okay, I'm here today and this thing 0:11:09.150 --> 0:11:10.739 that I want is in the future and I don't 0:11:10.740 --> 0:11:12.930 really know how I'm going to get there. It feels 0:11:12.929 --> 0:11:14.970 hard and it feels heavy. And to be honest, I 0:11:14.970 --> 0:11:18.060 used to get sad about it. Instead, pretend as if 0:11:18.090 --> 0:11:21.120 you could actually have those things, if you pretended like 0:11:21.120 --> 0:11:23.520 you could have those things. Ideally, you just get close 0:11:23.520 --> 0:11:25.320 to those things and you start to understand, like, what 0:11:25.320 --> 0:11:27.030 do they feel like? If you want to buy a 0:11:27.030 --> 0:11:29.370 new car, instead of just dreaming about this car that 0:11:29.370 --> 0:11:32.010 you've never seen outside of maybe an Instagram ad or 0:11:32.010 --> 0:11:35.280 some sort of promotion, go test. Drive the freaking car. 0:11:35.309 --> 0:11:38.280 Get close to it, because the closer that you get 0:11:38.280 --> 0:11:40.590 to it, it becomes real to you. And that is 0:11:40.590 --> 0:11:44.810 this whole broke versus rich money mindset. These things are real. 0:11:44.809 --> 0:11:47.630 You can have them. They are available to somebody on 0:11:47.630 --> 0:11:49.850 this planet, and somebody is going out there and doing 0:11:49.850 --> 0:11:52.220 what it takes to get there. That person could be you. 0:11:52.220 --> 0:11:54.650 And the more real it is, and the more you 0:11:54.650 --> 0:11:57.740 actually believe that it's possible because you're experiencing it, the 0:11:57.740 --> 0:12:00.050 higher the likelihood that you're going to take the actions 0:12:00.050 --> 0:12:02.210 that are required to get there. 0:12:02.390 --> 0:12:06.530 If you enjoyed this episode, I have a sinking suspicion 0:12:06.530 --> 0:12:11.990 that you would love my weekly newsletter called Business and Business, 0:12:11.990 --> 0:12:15.770 and is my love letter to all of the business 0:12:15.770 --> 0:12:19.370 people out there who have to figure out business and 0:12:19.370 --> 0:12:23.720 other parts of their life health, wellness, beauty, fashion. 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