The Strategy Millionaires Use To Manage 1 Dollar and Build True Wealth | Ep. 101
Summary
As entrepreneurs we get so focused on making money that once we get it we don’t know the strategy to keep it and as importantly, use it to build true wealth.
Wealth is what you retire on and have an opportunity to leave to future generations.
In this episode I break down how millionaires manage one dollar. You can start using this exact strategy yourself to start building wealth from the profits of your business today.
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Hello Friends. Welcome to the show. Today. We’re talking about how a millionaire manages $1. Here we go. Welcome to build a business success secrets.
The only podcast that provides straight talk for entrepreneurs whether you’re an entrepreneur starting with an idea or growing your business. This show is for you. We’ll teach you how to build a strong mindset, powerful body and profitable business so you can achieve success and here’s your host, Brandon. See white, we as entrepreneurs take huge risks to start and scale our businesses and then once we make our money, it is really important to not only keep that money but build wealth and invest it successfully.
And more often than not, I’ve met entrepreneurs who have made a ton of money and aren’t as good as investing it. And if you’re not ready or don’t know how to manage $1 million dollars or multiple million dollars when you get it, you’ll likely go broke. Best case only die with a fraction of what you had. I was reading the other day for some odd reason about lottery winners And it turns out believing there’s a ton of statistics out there and some studies that say different things.
But the research shows that in general, over all the studies I read, it sounds like 60-90 of people who win the lottery go broke. And we’ve heard this tale, we’ve heard about professional athletes who make $100 million dollars and then go bankrupt or singers who make hundreds of millions of dollars and go bankrupt or actors or actresses and this is crazy. We work so hard to make this money that we need. Really. It’s our obligation To learn how to invest it once we make it so that we can have generational wealth.
So today I’m going to talk about how a millionaire manages $1 and the mindset and here’s the mindset. I’m going to save some money after I pay all my bills this month. Oh man, things are tight. Oh, spend all my money. I got no money for savings. Sound familiar when you’re building a company or you did build your company or you are building your company and at the end of the month you’re like, oh man, I really wanted to see, but there’s no money I’ve been there, but I want you to reprogram your mind so that you don’t end up at the end of the month with no money.
And here’s that mindset that you want. I’m not going to invest all my money this month so that I can at least have some left over to pay the bills. Now this sounds like a little nuance, but it’s important and I actually do this at the end of the month with whatever money my wife and I have made from our businesses and our salaries eye socket all away into our investment account. And I try to figure out how much I can leave to actually pay the bills. And here’s what happens when you do that. Now. Your mindset says, oh what can I cut out so I can invest more money versus let me pay my bills and see what I have left over.
If you have that mentality, you will have no money left over, you will find something will happen, your bills will expand because your focus is on the bills, got to have your focus on your investments and actually some months I invest too much and I got to put money back in the bank account to pay the bills. But with that mindset now my focus is how much money can I sock away and invest. And this is how a millionaire thinks, How much money can I put a way to increase my wealth and leave some left over to pay the bills.
That’s the mindset. Now, the next thing you’re gonna ask is, well, Brendan, how does the millionaire spend the $1? So let me break it down for you. It’s very, this is mimics what I do. So the 1st 10 cents of the dollar goes into long term investments. This is money that will create wealth. Remember true wealth is only created by money you earn and you don’t spend. That’s wealth. And a long term investment is something that we don’t need for 10 15 2030 40 years, depending how young you are. 1st 10 cents long term investment, next 10 cents short term investments.
This is put into low risk investments that can get liquid quickly And therefore expensive purchases. So what would expensive purchase be a home repair, a car, a vacation, things like that where I know we’re going to need money. The next 10 cents goes into investing in my education or the millionaires? Education. What does that mean? Well, things are changing all the time and in order for me to make more money, I need to keep up with the times so I’m going to invest in books that I buy every month courses that I buy. I’m going to hire an expert to teach me something. I’m gonna subscribe to newsletter.
I have tons of newsletters that I pay for. I have magazines that subscriptions that I that I pay for newspaper articles or newspapers depending on how you want to buy them these days. And I’m going to invest that 10 cents in that. So 1st 10 cents long term, Next 10 cents short term investment that can be liquid. The next 10 cents is in my education so that I can continue to make more money and build true wealth. Remember we’re not just trying to make money here, we’re trying to build wealth, The next 35 cents is going to go to the tax man. What I do and a lot of millionaires will do Is successful millionaires who are building wealth that is will invest that 35 cents and they don’t pay the tax man right away.
I’m not saying break the rules, I’m saying understand what the rules are with the I. R. S. And also have this mindset, not the mindset that I owe taxes, but you have a tax liability. That’s a very different thing. If you’re focused on just paying your taxes, then it’s a bill. I don’t look at it as a bill. I look at it as a tax liability that I am liable for. But if I can invest that money before I pay Uncle Sam, then I actually get to make money on what I owe. I’m leveraging that tax liability and I have a ton of moves that I make or approaches to minimize my taxes legally. All legal.
These are all laws that are on the books, but most people just don’t do. So you’ve got to have a tax liability strategy. But what I do is I sock that money right away in an instant now. I keep it in low risk, highly liquid investments, whatever those are. So that when the tax man does come, I didn’t lose money. I actually made sure that I made money, but I’m investing that money and making money on that liability. So think about this and talk to your accountant about how you can change your mindset from a tax bill To a tax liability and build a strategy around that so that you can make money on your tax bill that you actually willow at some point.
So now we’ve spent 65 cents The last 35 cents, our four year old bills, your daily living, whatever those are, your mortgage, your food, all of gas for your car, all of those things, That’s where that money goes and what you can see here, the mindset isn’t let me pay my bills. I didn’t start with, oh well what are all my bills here they are? And then here’s the money. I say. I said, here’s how I’m investing the first 65 cents of this dollar, and then I’m going to leave some money left over, pay my normal bills. Put these millionaire principles into action.
To build true wealth for yourself and your family. Thanks for being generous with your time and joining us for this episode of build a business success secrets. Before we go, let me ask you a quick question. Are you the type of person who wants to get 100 out of your time? Talent and ideas. If so, you’ll love our monthly built a business success secrets newsletter. It’s a monthly playbook about the inner game of building a successful business. Recent issues have shown how to avoid losing money on Facebook and Instagram paid ads with this science-backed strategy, how to build a pitch deck to raise money in 13 simple slides, three tips.
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