WEBVTT - Ownership is THE Key to Wealth Building #425 0:00:00.120 --> 0:00:03.160 Welcome to How the Money. I'm Joel and I am Matt, 0:00:03.320 --> 0:00:06.560 and today we're discussing why ownership is the key to 0:00:06.640 --> 0:00:27.400 wealth building. Joel, this actually kind of takes me back 0:00:27.440 --> 0:00:31.360 to my skating rink days, where if you showed up 0:00:31.360 --> 0:00:34.040 with your own skates, your own quads, or even better, 0:00:34.080 --> 0:00:37.120 if you showed up with your own inline skates, you 0:00:37.159 --> 0:00:40.040 were super cool. So we're not talking about ownership whether 0:00:40.240 --> 0:00:41.920 you show up with your own skates or do you 0:00:42.000 --> 0:00:44.640 rent the uh the skates that are already there, the 0:00:44.720 --> 0:00:47.600 nasty brown ones. But we're talking about what we do 0:00:47.680 --> 0:00:51.159 with our money when it comes to investing, primarily. But 0:00:51.200 --> 0:00:54.760 we're dedicating an entire episode to changing the way you 0:00:54.840 --> 0:00:57.040 think about how you spend your money, what we spend 0:00:57.040 --> 0:00:59.320 our money on, and we're gonna gonna essentially, we're gonna 0:00:59.320 --> 0:01:01.560 trying to introduce you to this paradigm shift that we 0:01:01.640 --> 0:01:04.080 hope changes the way that you view all of your 0:01:04.080 --> 0:01:06.920 expenses moving forward. Those roller skating days, man, those are 0:01:06.959 --> 0:01:09.880 your salad days too. It's only been down hills, is them? 0:01:10.040 --> 0:01:13.080 So wait, when you say salad days, I always hear saladays, 0:01:13.080 --> 0:01:15.400 and like I always think like young and immature, not 0:01:16.080 --> 0:01:19.039 they're not like the golden days, right, Like is that 0:01:19.080 --> 0:01:22.120 how that's how you think your best years? Best years? 0:01:22.200 --> 0:01:24.080 I always hear saladays, and I think like you're green 0:01:24.240 --> 0:01:25.959 and your immature, like like you've got a lot of 0:01:26.040 --> 0:01:28.320 years of growth ahead of you. Okay, all right, that 0:01:28.360 --> 0:01:30.240 makes sense makes I don't know. I think you can 0:01:30.280 --> 0:01:31.960 use it the way you're using it as well, kind 0:01:32.000 --> 0:01:35.080 of like the pinnacle like, oh, the good old days. Well, 0:01:35.240 --> 0:01:36.880 I'm pretty sure that was for you, right, just like 0:01:37.200 --> 0:01:39.240 taking your inline skates out there on the on the roll. 0:01:39.280 --> 0:01:42.160 So I didn't have I no, no, you cann I 0:01:42.240 --> 0:01:44.559 was like I didn't even splurge on the speed skates. 0:01:44.600 --> 0:01:47.039 You know, you could like upgrade and get the instead 0:01:47.040 --> 0:01:49.040 of the brown crappy leather skates, you could upgrade and 0:01:49.040 --> 0:01:51.360 get the black ones, and those had I don't know, 0:01:51.440 --> 0:01:54.920 like wheels, extra fast ball bearings and so those jokers 0:01:55.040 --> 0:01:57.960 would haul Like for real, I didn't need that, man, 0:01:58.000 --> 0:02:00.120 I just throw those standard skates on my feet and 0:02:00.120 --> 0:02:02.120 I'll just like keeps getting until I had, you know, 0:02:02.120 --> 0:02:06.480 like twenty blisters on each foot, on each foot always. 0:02:06.560 --> 0:02:09.400 I had so many blisters from skating on a on 0:02:09.440 --> 0:02:12.079 a Friday after school. Yeah, well before we get into 0:02:12.200 --> 0:02:15.200 talking about my ownership is such an important concept, and 0:02:15.440 --> 0:02:17.519 I agree, man, it is paradigm shifting. I just wanted 0:02:17.520 --> 0:02:20.800 to quickly mention my sister and brother in law they 0:02:20.840 --> 0:02:23.480 just bought a scooter to zip around town. They actually did. 0:02:23.639 --> 0:02:25.800 Yeah you're talking about they that they were considering it, 0:02:25.840 --> 0:02:27.640 and I feel like, scooter, you have to actually define it. Now. 0:02:27.639 --> 0:02:30.040 There's so many different variations of scooters, like a not 0:02:30.120 --> 0:02:32.160 a bird scooter, No, not one of those, not one 0:02:32.160 --> 0:02:33.880 of those, but one of the the ones you actually 0:02:33.919 --> 0:02:36.440 sit on, Like they can get two people on their scooter. Uh, 0:02:37.160 --> 0:02:40.160 and it's like dumb and dumbers say exactly exactly. So 0:02:40.160 --> 0:02:43.800 it's gas powered and it's I think. And I just 0:02:43.840 --> 0:02:46.840 wanted to mention that this was something that they've gone 0:02:46.840 --> 0:02:48.720 down to becoming a one car family. But they were like, 0:02:49.000 --> 0:02:50.720 you know what, we kind of feel the need for 0:02:50.760 --> 0:02:54.560 some other mode of transportation that isn't a bike, because 0:02:55.240 --> 0:02:57.280 I know they should. I mean, they've got bikecause I 0:02:57.280 --> 0:02:59.320 see him rinning around the neighborhood. Actually they lived nest 0:02:59.360 --> 0:03:02.200 to us, but they wanted something else. And I will 0:03:02.240 --> 0:03:05.920 say that a scooter like that is a perfect in 0:03:05.919 --> 0:03:08.360 between vehicle for a lot of people. And one of 0:03:08.360 --> 0:03:11.320 the great things about these scooters one they're not very expensive. Yeah, 0:03:11.320 --> 0:03:14.359 they're not very expensive to maintain either, if you get 0:03:14.360 --> 0:03:15.799 the right one, by the way, because you can get 0:03:15.840 --> 0:03:18.480 some really crummy ones. You can cheap out buying a scooter, 0:03:18.720 --> 0:03:21.720 and oftentimes those don't last long at all. But yeah, 0:03:21.720 --> 0:03:24.520 they opted for something decent, and so I just wanted 0:03:24.560 --> 0:03:28.600 to mention that sometimes, you know, one of these nicer scooters, 0:03:28.760 --> 0:03:31.200 it doesn't cost a whole lot of money. Uh, and 0:03:31.400 --> 0:03:33.480 it's really not that expensive to ruy to maintain, and 0:03:33.520 --> 0:03:36.280 it could be a better decision than having a second 0:03:36.280 --> 0:03:38.360 car or you know, even a third car in the 0:03:38.360 --> 0:03:41.080 case of some families. This might help you get some 0:03:41.120 --> 0:03:43.040 of those trips in without needing to hop in the car. 0:03:43.200 --> 0:03:45.160 I'm just gonna wait on the day that Evan pulls 0:03:45.240 --> 0:03:47.440 up in front of our house and just calls over. 0:03:47.480 --> 0:03:49.680 He's like, I get seventy miles per gallon on this hog. 0:03:50.880 --> 0:03:52.840 There are actually two guys who have you have you 0:03:52.840 --> 0:03:55.000 seen this story going around internet. There's these two guys 0:03:55.000 --> 0:03:58.120 who did that trip, the dumb dumb, dum dumber trip 0:03:58.640 --> 0:04:03.520 you know, up through Colorado, or what ever, like to aspens. Yeah, 0:04:03.560 --> 0:04:05.400 that happened, uh, I guess a couple of months ago. 0:04:05.440 --> 0:04:06.760 But maybe we'll link to it in the show notes. 0:04:06.760 --> 0:04:08.560 Okas pretty funny. I want to read that they like 0:04:08.640 --> 0:04:11.960 dressed up like him as well in the two tuxedoses, 0:04:11.960 --> 0:04:14.520 don't orange in the like they had on like I 0:04:14.560 --> 0:04:16.440 feel like a member's only style jacket. Can you think 0:04:16.480 --> 0:04:18.480 you know what I'm talking about? Yeah? Um, yeah, it's 0:04:18.480 --> 0:04:20.279 been a while since I seen it, but still a classic. 0:04:20.320 --> 0:04:23.720 It's still burned into my memory of how fantastic it was. Yeah, 0:04:23.800 --> 0:04:26.479 for classic. Alright, Matt, let's move on. Let's mention the 0:04:26.480 --> 0:04:28.360 beer that we're having on the show today. This one 0:04:28.440 --> 0:04:31.920 is called Money Blend by American soul Lara and this 0:04:32.000 --> 0:04:35.320 is a perfect name money for beer, exactly said to 0:04:35.360 --> 0:04:37.360 us by a listener, by the way, that's right, Yeah, 0:04:37.440 --> 0:04:40.479 listener James sent this one away. So James, big thanks 0:04:40.760 --> 0:04:42.840 to you. Looking forward to having this one, and we'll 0:04:42.920 --> 0:04:44.520 give our thoughts on this beer at the end of 0:04:44.520 --> 0:04:46.680 the episode. You know what a perfect beer for how 0:04:46.680 --> 0:04:49.880 the money? All right, Well, let's move on, Matt. Let's 0:04:49.880 --> 0:04:52.719 talk about why ownership is the key to wealth building 0:04:53.000 --> 0:04:55.320 and We put the in all caps because we believe 0:04:55.480 --> 0:04:59.000 ownership is this crucial, essential building block of being able 0:04:59.040 --> 0:05:02.159 to grow your money the time. It's often overlooked as well, 0:05:02.240 --> 0:05:05.680 because there are other practices that people tend to employ 0:05:05.760 --> 0:05:08.680 when they're looking to, you know, save up some more money. Right, 0:05:09.120 --> 0:05:13.320 investing doesn't come as natural to us as some other practices. Yeah, 0:05:13.400 --> 0:05:15.400 and I still I still remember, you know, becoming a 0:05:15.480 --> 0:05:18.200 dad for the first time, Matt. Uh, it was like 0:05:18.240 --> 0:05:21.360 this immediate game changer for me somehow in one moment, 0:05:22.120 --> 0:05:24.080 by just by holding my brand new baby girl, I 0:05:24.120 --> 0:05:26.120 was able to quickly see so many of the ways 0:05:26.200 --> 0:05:28.640 in which my life was kind of currently revolving all 0:05:28.640 --> 0:05:31.160 around me. And like, even even though I've been married 0:05:31.200 --> 0:05:33.000 for a few years and I've been able to see 0:05:33.040 --> 0:05:35.839 some of those aspects, you know, during during those first 0:05:35.920 --> 0:05:39.640 years of marriage, becoming a dad really cemented that for me. 0:05:39.680 --> 0:05:42.280 And it was like a game changer in you know, 0:05:42.360 --> 0:05:44.760 what it looks like to serve other people and actually 0:05:44.800 --> 0:05:47.080 to shed some of that selfishness that I would really 0:05:47.120 --> 0:05:49.760 come accustomed to. Uh. And Yeah, it also helped me 0:05:49.800 --> 0:05:52.280 see my parents in a new light instantaneously too, Like 0:05:52.520 --> 0:05:55.040 I was able to see maybe their parenting mistakes differently 0:05:55.200 --> 0:05:58.160 as I started to make similar mistakes in parenting myself. 0:05:58.560 --> 0:06:01.520 And yeah, we don't really get many paradigm shifting experiences 0:06:01.600 --> 0:06:03.960 in our lives, right where just in an instant we 0:06:03.960 --> 0:06:07.320 see everything with clarity, but you can look differently because 0:06:07.360 --> 0:06:08.880 I was there, you know, Kate, and I shoot up 0:06:08.880 --> 0:06:10.800 the next day glow about me or something of that 0:06:10.880 --> 0:06:12.920 is that. I think it was just the adrenaline for 0:06:13.120 --> 0:06:17.679 from having labored with Emi, labor for hours whatever, almost 0:06:17.720 --> 0:06:20.120 a day, right, but those are the salad days. No, 0:06:20.240 --> 0:06:22.400 those are the salad days. But yeah, I think you 0:06:22.440 --> 0:06:25.160 and I we believe that understanding the necessity of ownership 0:06:25.200 --> 0:06:28.600 and the long term benefits that ownership provides can provide 0:06:28.600 --> 0:06:31.880 like a similar epiphany for people that are producing financial independence, 0:06:32.120 --> 0:06:35.200 just thinking about the way we invest and realizing the 0:06:35.279 --> 0:06:38.920 power of ownership is really powerful. Yeah. Absolutely, I mean 0:06:39.200 --> 0:06:40.880 to put it bluntly, you know, if you want to 0:06:40.920 --> 0:06:43.919 stay poor, well don't own anything, right, And I don't know, 0:06:43.960 --> 0:06:46.279 maybe that's kind of harsh, but it's true because in 0:06:46.320 --> 0:06:49.640 our consumer driven society, we actually are encouraged to buy things. 0:06:49.960 --> 0:06:54.000 It's just that we're god on to purchase the wrong things. Uh, 0:06:54.040 --> 0:06:56.680 And it's exactly that we're pushed to buy stuff that 0:06:56.760 --> 0:06:59.880 quickly loses its value instead of directing our money and 0:07:00.040 --> 0:07:03.800 ownership of different assets that will grow our wealth. And 0:07:03.880 --> 0:07:06.680 there's what we see around us in media and advertisements 0:07:06.920 --> 0:07:10.040 and the general keeping up with the joneses vibe that 0:07:10.080 --> 0:07:13.000 we feel because of social media and peer pressure. This 0:07:13.080 --> 0:07:16.800 all directs us to pursue the wrong things, buying more stuff. 0:07:17.200 --> 0:07:19.480 But oftentimes, man that pursuit leaves us wanting more, and 0:07:19.480 --> 0:07:23.520 it keeps us from the more important work of becoming owners. 0:07:23.760 --> 0:07:26.640 And specifically we're talking here about owners of things that 0:07:26.840 --> 0:07:30.239 gain value. That is what will provide the real financial 0:07:30.240 --> 0:07:32.440 freedom in our lives. Yeah. Yeah, it's really important to 0:07:32.440 --> 0:07:35.360 own the right things, right, Like some some places that 0:07:35.400 --> 0:07:37.200 we put our money will cause our net worth to 0:07:37.240 --> 0:07:39.560 go up over time, while other places that we put 0:07:39.600 --> 0:07:41.560 our money, we'll cause it to go down. You know, 0:07:41.560 --> 0:07:44.160 Obviously we need to consume some things, right, Like we 0:07:44.200 --> 0:07:47.640 can't put of our resources towards ownership or we'd starve. 0:07:48.400 --> 0:07:52.800 Compare that grocery budget down from to zero, yeah, exactly, 0:07:52.840 --> 0:07:55.760 And let's just dumpster dive for dinner every night probably, Yeah, 0:07:55.760 --> 0:07:57.240 it's probably not going to be a fund, you know, 0:07:57.240 --> 0:07:58.800 I'm gonna be able to do that for long. But 0:07:58.960 --> 0:08:01.720 knowing the difference between purchase in an investment is crucial, 0:08:01.720 --> 0:08:04.360 and that that might sound stupid. You might say, I 0:08:04.440 --> 0:08:06.520 know what that is, like that that's a simple distinction 0:08:06.680 --> 0:08:07.960 and you don't have to spell it out for me. 0:08:08.160 --> 0:08:10.360 But Matt, I've just heard so many folks refer to 0:08:10.480 --> 0:08:13.640 consumer purchases as an investment. Um and maybe it's just 0:08:13.680 --> 0:08:16.640 petty on my part, but owners, I think, think differently, 0:08:16.880 --> 0:08:20.680 and just that mindset shift is powerful. Developing an owner 0:08:20.760 --> 0:08:24.680 mindset means that you're prioritizing, uh, the long term, and 0:08:24.680 --> 0:08:27.200 I think it's a really exciting concept for people to 0:08:27.440 --> 0:08:31.480 grasp onto two as they're striving towards financial independence. Yeah, 0:08:31.480 --> 0:08:33.360 and you know, as we're talking about buying the right stuff, 0:08:33.440 --> 0:08:36.000 Like we were joking about how a bike could or 0:08:36.040 --> 0:08:39.160 couldn't be an investment, but obviously really it's not, and 0:08:39.360 --> 0:08:41.440 it's it's still one of the best consumer purchases you 0:08:41.440 --> 0:08:43.520 can make, but it's not an investment exactly. Yeah. Yeah, 0:08:43.600 --> 0:08:45.360 I mean, so for the sake of the show, you know, 0:08:45.400 --> 0:08:47.760 we define an investment as money that you put towards 0:08:47.840 --> 0:08:52.199 something that we expect to steadily increase in value over 0:08:52.280 --> 0:08:54.920 a number of years. And yeah, you know, as much 0:08:54.960 --> 0:08:56.800 as we love our bikes, were not expecting them to 0:08:56.920 --> 0:08:59.720 inherently gain and value. You can't expect to sell your 0:08:59.720 --> 0:09:02.160 bike three years from now out of profit. Now, you know, 0:09:02.200 --> 0:09:05.880 there might be tremendous value, tremendous enjoyment that we receive 0:09:06.120 --> 0:09:09.720 from our bikes, but the object itself, uh, isn't going 0:09:09.720 --> 0:09:12.400 to increase in value. And similarly, you might hear someone 0:09:12.480 --> 0:09:15.319 say that new clothes for work, like that's that's that's 0:09:15.360 --> 0:09:17.240 also an investment. I need to do this in order 0:09:17.240 --> 0:09:20.400 to get ahead, to get that promotion. Nope, you don't. 0:09:20.559 --> 0:09:22.640 That is not how it works. Like you won't be 0:09:22.679 --> 0:09:25.760 able to yourself. Yeah, Uh, those value that the value 0:09:25.760 --> 0:09:27.600 of those clothes is not going to be higher in 0:09:27.600 --> 0:09:30.240 a few years. Uh, you're not gonna gain more money 0:09:30.280 --> 0:09:32.679 from selling those clothes and in three to five, ten 0:09:32.760 --> 0:09:35.040 years whatever than the money that you pay for them 0:09:35.160 --> 0:09:38.040 right now. Uh. You certainly will look nice and you 0:09:38.160 --> 0:09:41.040 look professional, but it is not an investment. So that's 0:09:41.080 --> 0:09:43.800 one of the big differences between purchases that bring you 0:09:43.920 --> 0:09:47.720 value compared to actual investments, and we're talking about investments 0:09:47.720 --> 0:09:50.440 and owning those today on the show. Yeah, so so 0:09:50.520 --> 0:09:53.000 let's let's talk about the continuum of ownership, Matt, because 0:09:53.320 --> 0:09:56.680 sometimes saving money can accidentally become the top goal in 0:09:56.720 --> 0:09:58.960 somebody's life. And I think some of our listeners maybe 0:09:59.000 --> 0:10:02.400 fall into that camp where right now they are in 0:10:02.440 --> 0:10:04.599 the phase where they just have to start saving. And 0:10:04.600 --> 0:10:06.439 you gotta start somewhere, right You've gotta be able to 0:10:06.440 --> 0:10:09.360 cut down your expenses, uh increase the gap so that 0:10:09.440 --> 0:10:11.720 you can and are able to save more of your 0:10:11.720 --> 0:10:13.840 money over time. And that is the first thing that 0:10:13.880 --> 0:10:15.360 you should be doing, by the way, is that is 0:10:15.400 --> 0:10:17.240 making sure that you're saving money so that that money 0:10:17.320 --> 0:10:19.880 is available as an emergency fund in a savings or 0:10:19.880 --> 0:10:21.920 a checking account. But some people, some of our listeners 0:10:22.040 --> 0:10:25.160 might be so risk averse that they stay in that 0:10:25.160 --> 0:10:28.000 space and they don't make the leap to ownership. And 0:10:28.040 --> 0:10:30.800 so you might be of the mindset that, well, I'm 0:10:30.800 --> 0:10:33.600 not spending all my money anymore, I'm saving some and 0:10:33.800 --> 0:10:35.760 you might be super proud of yourself, and like we said, 0:10:35.760 --> 0:10:38.040 that's the first step. That's great, it's a start, but 0:10:38.160 --> 0:10:41.280 saving money is really just the absence of spending. It's 0:10:41.360 --> 0:10:43.480 it's obviously a crucial thing that needs to be mastered 0:10:43.480 --> 0:10:46.360 in the area of personal finance. But just doing that 0:10:46.480 --> 0:10:49.400 doesn't mean that you're on the all important path to ownership. 0:10:49.760 --> 0:10:51.839 And yeah, sure, sure you've got more cash on hand now, 0:10:52.040 --> 0:10:54.120 but what are you actually doing with that money? Becoming 0:10:54.160 --> 0:10:58.000 an owner means thinking beyond just the realm of budgeting 0:10:58.040 --> 0:11:01.240 and frugality. Matt, I think reality is a skill. It's 0:11:01.240 --> 0:11:03.520 a good skill. It's an important scale. I think if 0:11:03.559 --> 0:11:07.280 we leave our personal financial knowledge there in the camp 0:11:07.360 --> 0:11:10.760 of frugality, though, we're missing out on a whole other section, 0:11:11.120 --> 0:11:16.000 probably the most important section growing our wealth, becoming owners. Yeah. Absolutely, again, 0:11:16.040 --> 0:11:18.000 it kind of makes me takes me back to the 0:11:18.000 --> 0:11:19.840 seven money gears what we talked about here in the show. 0:11:20.200 --> 0:11:21.880 But imagine, and I know this is hard because most 0:11:21.880 --> 0:11:24.319 folks don't have stick shifts, but imagine you've got a 0:11:24.360 --> 0:11:27.400 stick shift and you're in that first gear and that 0:11:27.440 --> 0:11:30.079 gets you off the line and you're going But I mean, 0:11:30.120 --> 0:11:31.800 what are you gonna talk about at like ten miles 0:11:31.800 --> 0:11:33.320 per hour? I mean, you can't go fast in first 0:11:33.320 --> 0:11:35.720 gear without completely blowing up your engine. Right, You're gonna 0:11:35.840 --> 0:11:38.800 just destroy it. But that's in a way, that's what 0:11:38.800 --> 0:11:40.360 we're talking about here. When it comes to your money, 0:11:40.480 --> 0:11:43.360 You're going to limit yourself if all you're doing is 0:11:43.520 --> 0:11:46.240 just saving your money. Like sure, you'll have maybe a 0:11:46.280 --> 0:11:48.600 massive emergency fund that you have a lot of liquid 0:11:48.600 --> 0:11:50.640 funds in the bank, but that is not the goal. 0:11:50.800 --> 0:11:53.080 We want you to gain speed, and that's why you 0:11:53.120 --> 0:11:55.280 have to shift to the other gears where you are 0:11:55.360 --> 0:11:57.480 going to be investing your money. And man, there's another 0:11:57.480 --> 0:12:00.000 problem too when you have all this money just sitting there, 0:12:00.120 --> 0:12:02.520 maybe in your savings or your checking account, because you know, 0:12:02.559 --> 0:12:05.040 in those moments or phases of life where maybe you 0:12:05.080 --> 0:12:06.839 have your head in the right place, you know you're 0:12:06.840 --> 0:12:09.080 not spending and instead you're funneling that money into your 0:12:09.080 --> 0:12:11.240 savings account. Uh, there's gonna be times in your life 0:12:11.240 --> 0:12:13.720 where that's going to be easier to do than other times. Right, Like, 0:12:13.760 --> 0:12:15.880 maybe you just got a new job, you've got a 0:12:15.920 --> 0:12:17.800 higher salary, you're busy with work, so maybe you're not 0:12:17.800 --> 0:12:20.760 spending much money at all. That is a great first step, 0:12:21.120 --> 0:12:23.719 but then they're gonna be times where you you might 0:12:23.720 --> 0:12:26.000 feel a little bored, right, and you look and see 0:12:26.000 --> 0:12:28.480 all this extra accessible cash just sitting there in your 0:12:28.480 --> 0:12:30.679 bank account, and you're gonna be tempted to spend it. 0:12:30.920 --> 0:12:33.600 You know, why not get a new car? You earned 0:12:33.720 --> 0:12:36.199 all that money. Maybe it's time to splurage on a 0:12:36.320 --> 0:12:38.920 on a peloton they seemed pretty cool, even though you 0:12:38.960 --> 0:12:43.520 can't run on them without paying run although maybe they've 0:12:43.760 --> 0:12:47.960 updated that that software problem by now. But essentially, like 0:12:48.000 --> 0:12:50.480 this is almost like an argument against savings. We want 0:12:50.480 --> 0:12:52.680 you to have enough savings in the bank that's liquid, 0:12:52.920 --> 0:12:55.280 that acts as a cushion for you. But beyond that, 0:12:55.760 --> 0:12:57.760 we do not want you to have that money just 0:12:57.760 --> 0:13:00.920 sitting there that's accessible. We want you to invest that money. 0:13:01.120 --> 0:13:02.800 Having too much savings it almost burns a hole in 0:13:02.880 --> 0:13:05.480 your pocket, you know, and you and having some of 0:13:05.480 --> 0:13:08.720 that money in investments owning things kind of ties that 0:13:08.760 --> 0:13:11.400 money up in a positive way, like it's building your 0:13:11.440 --> 0:13:14.280 net worth, but it's also not readily accessible for you 0:13:14.360 --> 0:13:16.439 to spend, and that's a good thing. So yeah, going 0:13:16.480 --> 0:13:19.320 going back to the idea of the continuum of ownership. 0:13:19.400 --> 0:13:21.800 When you buy items, even purchases that bring you a 0:13:21.800 --> 0:13:24.800 lot of joy and value, those objects drop in value 0:13:24.920 --> 0:13:28.000 right over time. Uh. Some more quickly than others, like 0:13:28.160 --> 0:13:31.880 buying a new car. Uh, the initial depreciation hit is rapid, right, 0:13:31.880 --> 0:13:34.280 and over the first three or four years, your car 0:13:34.400 --> 0:13:37.439 is going to go down in value by on average, 0:13:37.720 --> 0:13:39.680 And so yeah, that means that your net worth is 0:13:39.679 --> 0:13:42.800 decreasing at the same time, think about a chart that 0:13:42.840 --> 0:13:45.199 maybe looks the opposite of the way the SP five 0:13:45.640 --> 0:13:47.600 has looked over the over the last ten years. And 0:13:47.640 --> 0:13:50.800 that's what you're doing when you're buying consumer goods that 0:13:50.960 --> 0:13:54.120 rapidly depreciate. And then yeah, when you're sitting on your 0:13:54.120 --> 0:13:57.720 money as cash, you flatlined. Right, your line isn't going down, 0:13:57.880 --> 0:14:00.560 but it's also not going up. It's just not doing 0:14:00.640 --> 0:14:03.400 much of anything. But when you invest your money and 0:14:03.440 --> 0:14:06.360 you own the right assets, the line on that chart, 0:14:06.480 --> 0:14:08.240 it's gonna grow, it's gonna go up into the right 0:14:08.559 --> 0:14:11.160 and that is the key to wealth building. Ownership is 0:14:11.200 --> 0:14:13.400 how you get their. Ownership is how you build wealth. 0:14:13.600 --> 0:14:15.720 And so, Matt, there are three main ways to become 0:14:15.760 --> 0:14:18.760 an owner in this country. We'll talk about them from 0:14:18.960 --> 0:14:22.360 easiest to hardest, and let's kind of discuss maybe how 0:14:22.480 --> 0:14:25.880 our listeners should go about the process of becoming an owner. 0:14:25.960 --> 0:14:36.880 Let's get to that right after this break. All right, 0:14:36.920 --> 0:14:39.400 we're back and we are talking about the key to 0:14:39.480 --> 0:14:41.800 wealth building and Jil, let's talk about some of the 0:14:41.920 --> 0:14:45.720 most effective ways to pursue ownership. Uh, and investing in 0:14:45.760 --> 0:14:48.640 the market is by far the easiest path to ownership. 0:14:48.800 --> 0:14:51.320 I love easy paths, Matt gonna li who doesn't. I 0:14:51.360 --> 0:14:54.080 don't want to climb everest. If you've got me like 0:14:54.160 --> 0:14:56.560 an easy little hike, I'm in the little nice hike 0:14:56.600 --> 0:14:59.560 path around the lake like that sounds more attainable. But 0:14:59.640 --> 0:15:03.000 even probably not too much elevation change as easy as 0:15:03.040 --> 0:15:06.200 it is, here's the problem. Nearly fifty percent of Americans 0:15:06.320 --> 0:15:08.680 have almost zero exposure to the stock market. This is 0:15:08.680 --> 0:15:11.200 according to Gallop, and that's a real problem. Man. That 0:15:11.240 --> 0:15:13.760 means that essentially half of Americans aren't building wealth. And 0:15:13.760 --> 0:15:16.400 what is basically the simplest way to do it buying 0:15:16.560 --> 0:15:19.160 index funds that allow you to share in the gains 0:15:19.240 --> 0:15:22.200 of some of the biggest businesses and industries in our country. 0:15:22.480 --> 0:15:25.280 Uh and even in the entire world. There are, of course, 0:15:26.040 --> 0:15:28.680 many reasons that like so many folks aren't investing. I 0:15:28.760 --> 0:15:32.200 think a lack of financial literacy is is one. And 0:15:32.280 --> 0:15:34.680 you know, truly not having enough money to be investing 0:15:34.720 --> 0:15:38.680 is another. Real wages adjusted for inflation, actually haven't kept 0:15:38.760 --> 0:15:41.680 up with the rising costs, which has squeezed the budgets 0:15:41.680 --> 0:15:43.800 of many Americans. But we also know that there is 0:15:43.840 --> 0:15:47.240 a big swath of that fifty who could be investing 0:15:47.400 --> 0:15:49.920 in pursuing ownership, but they've actually decided to put it 0:15:49.920 --> 0:15:51.920 on the back Learner, they don't feel that it's important. 0:15:52.160 --> 0:15:53.720 And if that's you, we wouldn't convince you to do 0:15:53.800 --> 0:15:56.920 something different with your money today. Starting sooner as opposed 0:15:56.960 --> 0:15:58.600 to later is important, and I think there are a 0:15:58.640 --> 0:16:00.360 lot of people if you talk to him now, they 0:16:00.640 --> 0:16:03.800 would say, I wish I'd started earlier because of the 0:16:03.840 --> 0:16:06.960 compounding returns that you're going to experience the longer you 0:16:07.160 --> 0:16:09.680 stay invested. So let's talk about that time frame. Maat Like, 0:16:09.680 --> 0:16:13.120 when you invest with an ownership mentality, you are buying 0:16:13.160 --> 0:16:16.960 for the long haul. There's a difference between owning and speculating, 0:16:17.200 --> 0:16:19.200 and I think a lot of what we've seen recently 0:16:19.400 --> 0:16:23.080 is more of the speculating Friday right, short term ownership 0:16:23.520 --> 0:16:26.200 isn't really ownership at all, And that's just not what 0:16:26.400 --> 0:16:27.960 we're talking about. That's not what you and I are 0:16:27.960 --> 0:16:30.840 all about. So, yeah, could you make a quick buck 0:16:31.040 --> 0:16:35.000 from buying Meme stocks or from some quick investments in crypto, Yeah, 0:16:35.040 --> 0:16:38.000 it's possible, right, But but owners are less focused on 0:16:38.040 --> 0:16:40.440 getting rich quick by trying to time the market because 0:16:40.560 --> 0:16:43.440 that path is fraught with pitfalls, and uh, yeah, you 0:16:43.440 --> 0:16:46.280 could potentially lose a lot in a short amount of time. 0:16:46.640 --> 0:16:49.160 Real owners by meaningful assets that they planned to hold 0:16:49.360 --> 0:16:53.000 for years and years and preferably for multiple decades. So yeah, 0:16:53.040 --> 0:16:56.000 when it comes to being an owner, Matt and I say, 0:16:56.160 --> 0:16:58.360 it's really really important to be in it for the 0:16:58.400 --> 0:17:01.760 long haul, to be buying share in companies basically all 0:17:01.800 --> 0:17:04.920 the companies ideally and holding them for the long haul. Yeah, 0:17:04.920 --> 0:17:06.840 And like you said, we've seen a pretty dramatic uptick 0:17:07.280 --> 0:17:10.160 in that speculative type of investing over the last few years, 0:17:10.240 --> 0:17:13.360 especially over the last maybe eighteen months. I think that 0:17:13.359 --> 0:17:15.439 that rise in investing has a lot to do with 0:17:15.760 --> 0:17:18.160 the ability for folks to be able to trade, buy 0:17:18.200 --> 0:17:20.760 and sell stocks on their phones, right with different apps 0:17:20.800 --> 0:17:25.520 like robin Hood. There's pros and cons, but at the 0:17:25.560 --> 0:17:28.120 same time, it makes it too accessible if you can 0:17:28.160 --> 0:17:30.560 just sit there, pull out your phone, while you're waiting 0:17:30.600 --> 0:17:32.800 on the light to turn green or something like that, 0:17:32.800 --> 0:17:34.760 and all of a sudden, you've like, you know, sold 0:17:34.800 --> 0:17:37.080 some stocks just because you had a feeling in your gut, 0:17:38.160 --> 0:17:40.439 just because somebody texted you was just like hey, by this. 0:17:40.480 --> 0:17:43.000 It's like, that's just what you ate this morning. That's 0:17:43.000 --> 0:17:45.000 not a good reason to trade. Yeah, but again, this 0:17:45.080 --> 0:17:47.800 is basically short term trading of assets, where you're hoping 0:17:47.840 --> 0:17:50.520 to make a quick buck, and that is not our style. 0:17:50.920 --> 0:17:53.600 A long time ago, back in the nineties. Uh, there's 0:17:53.600 --> 0:17:55.320 this quote by Warren Buffett, and he said that if 0:17:55.320 --> 0:17:57.720 you aren't willing to own a stock for ten years, 0:17:57.920 --> 0:18:00.919 don't even think about owning it for ten minutes. I 0:18:01.000 --> 0:18:03.520 love that the best investors have been able to view 0:18:03.560 --> 0:18:06.560 their their their investments as buying a piece of a business, 0:18:06.760 --> 0:18:09.000 not just buying a piece of paper, not just buying 0:18:09.040 --> 0:18:11.800 a number on the screen, not just buying a feeling, 0:18:11.960 --> 0:18:14.600 which oftentimes is what's happening with these day traders now. 0:18:15.000 --> 0:18:17.640 And so that subtle shift in thinking is important. And uh, 0:18:17.680 --> 0:18:21.040 it'll it'll feel your likelihood of you know, taking the 0:18:21.080 --> 0:18:23.520 long term approach, and that's what we want folks to do. Yeah, 0:18:23.760 --> 0:18:25.960 I agree, man. I think if all you see is 0:18:26.119 --> 0:18:29.200 numbers on a screen and you don't see the underlying 0:18:29.920 --> 0:18:32.520 thing that you own, the asset that you have just purchased, 0:18:32.760 --> 0:18:34.520 then you're just not going to think about it properly. 0:18:34.640 --> 0:18:36.920 So let's give a couple of examples maybe of how 0:18:36.920 --> 0:18:40.040 this plays out, of how becoming an owner would make 0:18:40.080 --> 0:18:43.720 you rich, whereas instead consuming that money would do the opposite. 0:18:43.840 --> 0:18:46.520 For instance, if you were to have bought Tesla stock 0:18:46.720 --> 0:18:50.240 instead of buying an actual Tesla when they put out 0:18:50.280 --> 0:18:52.439