KGCI: Real Estate on Air - Escape the Payment: Matrix Tony Manganiello's Blueprint for Lasting Prosperity!

Episode Date: September 30, 2025

SummaryIn this transformative episode, financial expert Tony Manganiello reveals his blueprint for escaping the "Payment Matrix" and achieving lasting financial prosperity. He shares how to turn debt into wealth by redefining your cash flow, utilizing strategic financial systems, and aligning your mindset with financial freedom. This episode is a must-listen for real estate agents and entrepreneurs who are tired of the transactional treadmill and ready to build a business that funds a life of lasting prosperity.Key TakeawaysMindset Shift: Tony emphasizes that true financial freedom begins with a mental shift away from being a "victim" of the traditional payment system.Transforming Payments into Prosperity: Learn how to strategically use your cash flow and implement financial systems to turn everyday payments into wealth-building opportunities.Building a Sustainable Business: Tony provides a roadmap for real estate professionals to move beyond the cycle of commission-based living and create a business that provides consistent, predictable income.Lasting Prosperity: The episode highlights the importance of creating a financial system that secures your future, reduces stress, and allows you to live a life of purpose.Keywords/PhrasesTony Manganiello, Financial Freedom, Financial Stress, Real Estate Finance, Wealth Building, Debt ManagementCall-to-ActionReady to break free from financial stress and build lasting prosperity? Listen to the full episode on your favorite podcast platform and learn Tony Manganiello's expert strategies for success!

Welcome to the Financial Freedom Mastermind Group podcast. Here we're all about breaking free from the 40 to 50 year work grind and accelerating our journey towards financial freedom. Join us every Wednesday at 7 p.m. Eastern as we explore different types of investments that can fast track your path to financial independence. We serve as a hub for connecting with fellow members during our sessions so you can share successes, ask questions, and keep the momentum going. Good evening, everyone.

This is Ni Yi Adewali with the Akabo Home Financial Freedom, Mastermind Podcast. And I'm so excited today to be joined by Tony Manganealiollo, who is an award-winning author and also a bestselling author that has written many books and has a new bestseller that is called Transforming Payments into Prosperity, where he's helping a lot of individuals build wealth, get rid of debt, and families start to take control of their finances. Tony, thank you so much for joining us tonight. Anyway, thank you so much for having me. I really appreciate it. Happy to be here.

Absolutely. Absolutely. And when you start talking about, you know, financial freedom and helping people break the debt cycle, this is music to my ears and also our listeners. This is what we talk about on a week to week and really daily basis. And so the first thing that comes to mind for me is how did you even get started in this space? What did it look like coming up for you? Well, when I was a young kid back in the 70s, my father and my father left our family.

And there was a lot of reasons why that was, you know, why he did that. But the reason that I found later in life that didn't help was the personal financial stress that everybody in the, that he was under. And so after, you know, college and a number of other experiences as you probably, we all have those, I really began to figure out or try to figure out, you know, why is it that money can have such an impact on relationships that should be? you know, go beyond money. And that's when I got into personal finance. I've been, you know, doing this for about 30 years now. And we've helped people eliminate debt and build wealth. And over

the last 12 years, we found a way to do this where you're able to pay off debt and build wealth with the same dollars at the same time. And to me, that was a complete game changer. We totally modified our whole business. The books I had written before I had found out about how this plan works, they're still applicable, but I wrote the most recent book this year because it was everything I've learned over the last 12 years with got to be over a thousand consultations with consumers and people who are just trying to build a future. And so I decided I'm going to put all this stuff down because people need to know this. And that's basically what it was, about and I just want to make sure I can do what I can to help families survive. You know, I mean,

when was the last time, you know, family sat down and said, hey, with all of our chaotic schedules and everything going on in life, you know what really helps is being stressed out about money. Nobody ever says that, you know, so, but what happens is that other chaos, when money problems are circling around, it just makes everything worse. So if we can turn the volume down on the money problems, then maybe families have a best. chance of surviving and thriving, which is really what the goal is. And Tony, that is an admirable goal and it's needed. When you look at the statistics, they say 50% divorces are because of something financial,

right? Yeah. Financial stress is the main thing that leads to arguments, which leads to breakups, which is tearing families apart. And so what you're doing truly is a work that is needed. And so when you look at even now, right, this is one of the things that I was so excited to be able to connect with you on is because you are actively out there helping families kind of get their finances and control. And when you look at what's happened even over the last 12 years

since you've come up with this strategy, the wealth gap's gotten larger and larger. And it's gotten even more difficult to be able to just have one person working in the house. You really need two. And you really need to have your money working for you as well when you're not working. And so I know you talk about escaping the payment matrix. Can you describe what the payment matrix is? Sure. You have your income. These days, money just gets direct deposit into what? A checking account. And what do you use that checking account for? To make your payments. What is the whole focus behind bringing in money? You know, you got a budget, right? And what the purpose of your budget is is to say, all right, I got this much coming in. I got to make all these payments. Oh, dear God,

let me have something left over, right? And then, you know, if you have something left over, you feel relief, you feel like, oh, I'm making it. That's the payment matrix. 92% of all hardworking Americans in this country today, according to the National Institute on Retirement Security, will never be able to quit working comfortably. What that means is that the lifestyle you enjoy while you're working, if you want that to continue into retirement, you can't stop working because they've used all of tomorrow's money today. When you look at the debt-to-income ratios, you know, if you've gotten a more, or if, you know, you've gone to any type of lending situation, they want to know what your debt

to income ratio is. And they, they, you know, the infamous they, they tell you that a 35% debt to income ratio or less is healthy. The question is healthy for who? Because when you calculate debt to income ratios, you use whatever your debt payments are and you divide that by your gross income. No one ever stops to think about how much do I have to, you know, because you're not making your payments with gross income. You're making it with net income. So nobody ever stops to think, how much do I have to gross to bring home enough money every year to just make my debt payments? And what I've seen over the years is it's up to 50% or more of your gross income is already spent before you've earned it because you've got to grow so much to bring home enough

to make the payments. And then you have these 15% credit cards, 8%, 7% car loans, 5, 6, 4% mortgages. Those percentages are only used to calculate your payment, but they never tell you how much of your payment is going to interest. And on average, it's up to 50% or more. And so what I come, I remember on a consultation probably about four years ago, and the thought came to me when I was talking to one of my clients. I said, you know, just because you can make your payments doesn't mean you can afford them. And the reason I came up with that was because who can afford

to have half of their gross income spent before they earn it on payments that are costing them 50% or more in interest? No one can. But the payment matrix makes you think it's okay. And that's why 92% of the people that are working in this country will never be able to quit working and maintain the standard of living. And to me, when I'm working with my clients, I like to look at what their needs are today. In the back of my mind, I'm always thinking, I call it the vulnerability scale. It's our age. The older we get, the more vulnerable we become. And the retirement's like a cliff. Everyone's heading for it. And I just want to help people turn and stare away from it as much as possible. The earlier you can start, the easier it is to turn. You get to be up to around my age. You got to start slamming on a

breaks and you know but no that's the point is that the payment matrix gives you that false sense of security because people budget and budgeting is one thing I try to teach people not to do because budgeting in my opinion what it does is it unknowingly applies the wrong purpose to your income I mean think about it you budget because you want to say hey I got all this money coming in and I want to be able to make my payments so what you're basically saying is the purpose of my income is to make my payments. That's wrong. The purpose of your income from your work or your career needs to be to replace the income from your work or career. And understanding how cash flow works is how to get to do that, you know, work on that

ultimate goal. Understand cash flow right now with a payment matrix checking account and all these other stuff that people do. It's just flowing things. through and out of your account and gone forever. We teach people how to begin to redirect some of that cash flow back to you so that ultimately you can become your own funding source. You can be the banker because, you know, those bankers aren't doing the stuff we're doing with our money. We need to help people do, and that's what we're here for, is to help people learn how

to be their own banker, how they do the same type of investing, the same type of savings that banks do, and even finance their own car purchases, their own. education and make a profit on those loans. And that's where the paradigm shift really comes in. And Tony, you are speaking my language and the language of all those that are listening with the financial freedom group. And so one of the things that I've noticed as well, and we have some people that are international that are within our group. And this is like, at least in my opinion, more uniquely a U.S. thing. Like outside this country, I don't know that this credit card dilemma kind of exists as much as it does here and it's really taken over. Yeah, well,

that's because we're the richest nation in history and the working class people have always been taken advantage of. They are always, I mean, when you think about the gross domestic product, it's something like around $20 trillion a year. That's crazy. Well, where's that coming from? You know, people talk about the rich people that, the 1%, they're not where all that money's coming from. It's the guys like the people I help, it's guys like us who are out there just trying to live a life, and they don't know that we're being sucked dry financially like, you know, the matrix in the movie where, you know, you're just this little energy pod, the little battery. Well, all we are to the payment matrix is a little battery of income, cash flow.

And the cash flows all to the banks, all to the insurance companies, all in the wrong way. And I'm here to say, you know what, let's flip the script on that. Let's teach you how to do what they do. And then you'll see some big changes in your life. Absolutely. And we want to dive into some of the nitty gritty here. And so one of the things that you talk about is the dual duty dollar, right? Being able to save some money while also having those dollars work for you.

And so what are some examples or what do you mean by that? Well, first of all, that comes from something I realized a number of years ago. When people are looking at the dollars they have in their possession and they're checking account, for instance. How many things can you do with those dollars at the same time? One thing. You can pay a bill today or you could put it away for tomorrow. That's kind of like if you're familiar with the movie Sophie's Choice, it's kind of like, you know, the Sophie's Choice, I call it the Sophie's Choice for your dollar, right? It's like, well, you know what?

Today is the nasty now and now. I'm just going to kick the can for tomorrow down the road. And that's just what happens. That's why 92% of the people can never quit working. Well, when you can do more than one thing with a dollar, that changes everything. Because now you can take care of today's necessities and needs while those same dollars are working for tomorrow's reality, that cliff you're heading for. And so as an example, when you start to redirect your,

cash flow the way we teach. Eventually over the course of it, and it's not something that happens overnight that requires discipline, commitment. Fortunately, it's also flexible. And, you know, we've got it all figured out so help people get there as best as they can. But you eventually get to a place. So let's say if you want to buy a car, I use in the book an example of buying a $30,000 car. Now, you can go into the financial interrogation at the finance department at the dealership, or you know you can save up money right people will buy cash buy cars with cash and that's a slightly better thing but both ways you wind up with a payment right because you either you're financing it and you got that payment every month or you got to start replenishing that

account you just bought your car with because you know cars don't last as long as they used to well I guess they've never really lasted that long to be good with but so the payment problem is still there when you use the type of strategy we teach What happens is you go and you borrow the money from yourself and you're able to do it. The rate that we are able to get, which we've been doing for about 10 years, is about 5%. And the money is also earning 4%. And people will say, well, Tony, if I'm paying 5% interest, but I'm only earning 4%, how am I not losing money? And the answer to that question is understanding how the volume of interest dollars works.

because as you make your payments every month, you're paying interest on an ever-decreasing balance. And as your money is just growing every month, it's growing on an increasing balance. And in the example I give in the book, in month 13 of the five-year payment plan for a car, which is what a lot of people do, month 13, you start earning more interest than you're paying. And when it's all said and done, you wind up net profit $2,600 on the car that you bought, And you got the car as opposed to losing all that interest to some finance company or taking the 30 grand out and then starting to put it back. And now the 30,000 isn't working for you. So when you can do the same thing with each, you know, the two things at the same time with your dollar, it changes your financial trajectory.

And this is something that's not talked about. It's almost like a secret that's out there that I'm happy that you are bringing to light. And so I got a couple questions that pop up with that, right? So how are you doing this? Like what vehicle are you investing in that's kind of pulling it from yourself? And this is the crazy thing, okay? Because I've been in personal finance since the late 80s. And back when I was in personal finance, I started in life insurance.

You know, life insurance, if you ever, you know, if you're sitting on a plane and there's a chatty Kathy next to you that is really like chatted up and you're like, I really could use some silence. Just say, hey, you know what I do for a living? I sell life insurance and oh really. You'll see, you know, the silence will be deafening. But what I discovered 12 years ago was that everybody's buying life insurance wrong and that's why nobody likes it. And what I mean by that is you buy life insurance. What's the thought in your mind? When you die. Yeah. What will my loved ones get when I die, right? But, and the premise of that is very noble and very important because you're looking to protect your family against loss of income, right? Well, are you the only one in that equation

looking to protect themselves against loss of income? You know who else is? The insurance company. That's why they don't just hand out life insurance contracts like nothing. You have to go through underwriting. They're going to draw blood. They're going to take samples. They're going to do all that stuff. You're getting it poked and prodded. Why do the, you know, they're going to do the money? Why do they do that? Because they want to make sure if they're going to, especially like with a term policy, if you get a half million dollar term, 20 year term policy where it's 30 bucks a month, how much are you putting up towards that half million? At most, 7200. You think the insurance company is going to risk a half a million dollars unless they're supremely confident. You're not going

anywhere, at least with regard to natural causes? No. So what we do is we say, you know what? People buy insurance wrong and they say what will my loved ones get when I die and they're not realizing the insurance companies making sure that you're circling the sun a couple dozen years or so before that happens. So the question you need to ask yourself when you buy life insurance is what will a contract do for me while I'm alive since if they offer me a contract I'm probably going to be around for a while and that's where the difference plays. Instead of buying death benefit and taking the premium dollars, what we do is we transform how you spend your premium dollars and we buy cash value as much as the IRS will allow us to buy because the IRS stepped in in the 80s and they passed a bunch

of laws because rich guys were saying to their planners, oh, I got an extra 100 grand a year. Where can I tax shelter? They'd be like, you know what? Put in a life insurance contract. Rich be like, the heck don't need life insurance for him, rich. And the advisor would tell them it's because life insurance is a tax haven. But in the 80s, they found out that this was going on and they changed the rules so that you have to have a certain amount of ratio of death benefit to cash value as it grows. So we do all that math and we make sure that we're buying as much cash value as we can.

That way, you know, when do you need your death benefit? One time, right? And it's usually people are living even into their 90s now. Have you ever bought? Well, obviously, we can't say we've bought life insurance at 90 years old because we're not there yet. If you ever try to, you're not going to be able to buy it, or it's going to be way too expensive in the 70s and your 80s. Well, we build a contract that gives you the cash value from day one because we're buying

cash value as much as we can, and it's building month to month or year by year, depending on how you pay your premium. And that money is accessible. The key thing about life insurance contracts is they tell you you can borrow the money, but you need the right kind of insurance company, the right kind of contract to make sure doing all the things it needs to be done and explain that in the book. And that's what we focus on. We're like, hey, listen, you get offered a contract. You're not going anywhere for a while unless they teabone you at the intersection on the way home from work. And if you do, you'll still have a decent,

because we do use term insurance to get the boost of death benefit to comply with the IRS rules because it's not expensive. But we're putting the majority of your premium dollars right into the cash value. And that, the insurance company says, hey, you want to. you want to borrow from that if you have the right type of contract with the right you know bells and whistles you can do it and they don't ask for a they don't ask you for a uh an application there's no credit check all you do is go online and request the loan and the money shows up in your account and the one thing that blows people away i get this question all the time what will my payment be on a loan of this much because when was the last time you took out a loan and you didn't know what

the payment would be before you took it out. The insurance company doesn't care if you pay it back. Now, there are some people who do this business and they say, they promote that like, you know, take out loans and never pay it back. Those are people who really don't understand how this stuff works. When you're working, during your working lifetime, as you build up this cash value, it's a recyclable amount reservoir of cash. And you buy, you, you borrow it to do what you need to do, pay for college, go on a vacation, whatever it might be, and then you pay it back like you would any other third-party bank. That way the money is there when you want to stop working, you can say, you know what, I'm going to turn off my premium if you want, and there's so much

cash value, it becomes self-sustaining. You can take money off to live in retirement, and, you know, just like any other retirement fund, you've got to make sure you don't spend it all in one place, and there's, you know, we teach how to do that. And then, you know, And then if you pass away at 85 years old, you still have a death benefit and you haven't been paying for it for years because we front load the contract with so much cash value that when you do need it, it's self-sustaining and you don't even have to pay a premium and your loved ones are still taking care of. That is incredible. And the way that you've just explained it and the fact that you have resources around to help other people break it down simply is important, right? Because I think we've all, to your point, been on that plane or at least. had somebody in your network that's an insurance agent and they start talking through this and

they're talking about all these annuities and hey we got whole life we got term and it starts to confuse you and your eyes glaze over but the way you've just described it sounds like an awesome benefit one of the things that you touched on that I've been having a lot of conversations recently and and for those who've been listening for a while they know that I used to be in medical device sales before moving into full-time real estate as a realtor and real estate professional And one of the reasons I did that was for tax benefits, right? Yeah. There was many years when I was paying six figure checks to the IRS.

I was like, man, this is nuts. How do I reduce this and kind of, you know, tax haven that way? And so I chose a bit of that real estate path. And also we've advised certain clients to do some of the short-term rental loopholes for tax savings, things that nature. But this seems like it could be another way to save people on taxes. Are there maximum amounts you can contribute? and what does this look like from a tax saving standpoint? Where the tax advantages come where what we like to tell people,

I like to say, we're going to move you from tax me now to tax me never, because life insurance is tax-free. You can access it tax-free. It grows tax-free. When you pass on and you leave the death benefit to your loved ones, that's tax-free. The money you're putting in is after-tax dollars.

So it goes into this tax-free environment. And for people in real estate, what's really cool about, using these types of accounts, these types of policies for real estate investing is if you had to flip a house, you might need, you know, if you have enough of a reservoir of cash, you go online, say, I need to get into this house. And it's going to take eight, 12, 16 months, who knows how long before you flip it. You know, you've got to do the work in it. You would, a lot of people go get a bridge loan. And you're just, oh, please God, let me sell this property. Let me get all the work done

before I have to start making too many of those payments. The insurance company doesn't even ask you for a payment. You can just take out the loan, get the property flipped, and what you'll do is you'll accrue a very small amount of interest every month. But then when you sell the property, pay back the loan, and when you pay back the loan, it's not money that's disappearing. What you just did is put it back into your recyclable reservoir of cash, and you pocket the difference.

And you didn't have to work. worry about stressing out over some bridge loan payment that you would have had to make if you went to the bank down the street. Wow. Yeah. And to that point, that is so real for the people that are listening because we're doing flips, we're doing rehabs and we're in, you know, usually using hard money that's charging anywhere from 12, 15, sometimes 20% plus.

Yeah. To be able to have, you know, this money really coming back to you and be able. And you can even do hard money lending with this with these accounts. You know, if you start building, you can. we teach people arbitrage. You know, you're saying people are spending or paying 10, 15, 20 percent. The highest, I think, the loan rate ever got on the policies we work with, I think was 5.67.

And that was just over the last year when all this crazy stuff in the economy was going. Up until then, it was 5% for like a dozen years. Now it's back down to 5%. And it'll probably stay there where it's been, you know, for the most part. So if you're able to, if you have, you know, want to lend somebody 50 grand, you take out the loan, you charge them whatever the going rate is, and you're only paying 5% or somewhere in that vicinity. And you're, if you're charging 15%, that's all profit.

This is pretty cool. This is definitely something that I'm personally going to export. I know you're going to get hit up by a lot of people from our community. But I wanted to ask just two more questions before transitioning to. opening this up to an open session for those that are listening live and throwing questions in the chat, we're going to jump to that here shortly. And we're going to give you an opportunity to connect with Tony as well. But the first piece is we talked about it a little bit up front, but going to that retirement piece, right? What does this look like when you retire? If you've made the right moves, you've built up that reservoir,

now you're retired. How do you tap into this wealth that you've built up? That's really simple. So in the book, I give an example of, I call the family the Fortunato family. I'm Italian, so it's got to be a, you know, a Fortunato, you know. So they're at 35, they start young, and they have a couple kids, and they're thinking, you know, we really need to start planning for our future. And so they have the choice of doing the traditional route with the 401K, you know, putting the money in and you can't access it at all. And it's tied up until 50, yeah, you might be able to take a loan out. but if you do, then maybe it's all kinds of squirrely stuff. Or you can use this strategy.

So the family uses this strategy. They make a 110 grand a year as a household, a little above average, but, you know, I like to tell people that I talk with, everybody I talk with is above average. So they're making a little bit extra, but they only have 600 bucks left over when they pay all their bills, all their debt. They have over $3,100 a month in debt payments that are costing them $1,600 a month an interest of that 3100, and it's they have to gross of their income. It's 47% of their income is being gross to just pay the 3,100 and change a month. So instead of doing the 600 bucks

towards the traditional plan, they decide to start working with what we call private family banking. They re-devert that money into this environment. And while they're doing it, they're paying off their debts. Doing that, they're completely debt-free in nine years and three months. and they have $67,000 inside their policy. So what do you do when you've got the $3,100 freed up? I mean, if you're just going to continue to make the payments, you continue making payments. They decide to double down and take the $3,100 and start another one.

By the time they reach age 65, they got $1.4 million in cash value and over $700,000 in death benefit on top of that. They've taken that and they've gotten over $2.1 million in estate value for their family. And they decide, well, there's, you know, some formulas you go in and we work some magic in the numbers. And they take, they say, you know what can I get for the next 25 years if I, you know, want to start budgeting, right? From that amount, they could take over $80,000 a year for 25 years. And guess what? That 80 grand is tax free because it's coming from a life insurance contract. So they could, you know, when they go into the 401Ks, we all know what happens with that.

I mean, you've probably, I would imagine that you're feeling the same way I do. I used to be one of those mutual fund guys. You know, they say, you know, if you put this money on your way and they 12%, and they give it, they put that into context of XYZ mutual fund. If you put 10 grand in 20 years ago, it would be worth this much. That's 17%. That's projected at just 12. And you're thinking, well, that seems reasonable.

well that's oh gosh what's it's price it's price something i can't remember what the phrases but it's they're doing something to make it seem like it's reasonable when it's not dalbar ink is a company that has done research on the average investor people like us who put money in 401ks and if they're lucky they get seven percent over 30 years so if they did get the seven percent in their 401k they would have around 700 grand as opposed to 1.4 million and then when they start taking it out, guess what? They pay taxes on it. And while it was growing, they couldn't access it to use things for their daily life.

And they've been paying debt payments all the time. Most people don't understand the importance of entering retirement debt-free. Because if half of your income, your gross income at 100 grand a year, if half of that, you've got a gross 50 to bring home, you know, your 34% debt-to-income ratio debt payments, that means you're living off of half of your income. So if you enter retirement debt-free, you could live on the same standard of living with half the gross income.

And then when we get involved, we're talking tax-free income, and it's almost like they're getting a step up because now they don't have to work, and they've got almost the same cash value, if not cash flow or more, to enjoy during retirement. And that's the thing that gets me

is because it's not like people aren't generating wealth. everybody thinks they have to generate more wealth the average individual is going to make around $2.7 million during their working lifetime the only reason they don't have anything to show for it is they've been using all that tomorrow money today no one showed them how the numbers work and they wind up broke they wind up at that cliff and they're hitting the brakes and they're swinging the you know they're pulling the parking brake they're trying to do everything before they go over the cliff and that's where this philosophy comes in because it's not the sophie's choice for a dollar It's, I can use this today, I can, while it's working for tomorrow, and I can get the best of both worlds.

And what you just said is spot on, right? I get nervous about some of the future generations because it's getting tougher and tougher to even afford just the standard living, right? Like it used to be a lot cheaper to just go out and buy gas and groceries and things that nature. And especially over the last five years, we've seen that accelerate in cost. And so there's a lot less room. you really have to be hyper-focused and make sure that every dollar that you make is getting put to use so that you can retire, right? You don't want to get to, you know, age 60, 65, and then start

to try to figure it out. And the hardest thing to do is what you just mentioned. It's a little bit of delayed gratification, but this takes some of that off, some of the sting-law, because you can still actually use some of those funds. And so what's the major risk here, right? I always want to get the pros, but also what do you see as the con or potential risk to doing this method? You know, that's the funny thing because we're not dealing in the stock market. We're dealing with a completely different platform. Insurance companies, especially the right kind mutual insurance companies, I don't know if you know the difference,

but a mutual insurance company is owned by the policyholders. They don't sell stock. And so when they make a profit, guess who gets a share of the profit, the policyholders? So you're like a silent partner in their business. And the companies, we work with our multi-billion dollar highly rated. Just, you know, we did our homework to make sure, and I'm doing this too. I'm going to make sure I'm not, I like to go to bed at night and sleep like a baby, not worrying about all this stuff.

So the focus is to be able to just have a platform, it's not going to get rich quick overnight. It's get rich quick slowly. and if there is a caveat, and that we've already kind of experienced it with the COVID thing over the last few years when I had clients that were in the plan and because we spend their premium dollars differently, and let's say they're making a $500 a month payment, I've had, gosh, probably about half a dozen clients during that time. It was a lot less than I thought it would be, but they would email me saying,

no, Tony, I think I got to cancel my policy. And I was like, don't forget, your $500 payment, if you, it's flexible because the cash, the money going into the cash value is technically an optional premium. And because 60% or more of that is going into that rider, they could reduce their payment by more than 60% to keep the policy afloat until they get back on their feet. I had one client that during the COVID era, he had to cancel his policy.

It was because he just started building a second restaurant. He had a restaurant going really well in the Chicagoland area. And he was putting a ton of money into his policy. And COVID hit. And he was telling me, Tony, they won't even let me have 50, they won't let me have more than 50% people in my, I can't make any money. I think he wound up going out of business. So, you know, that's just like with anything.

You know, really, the only limitations are the resources that the client has available and the parameters that we're working with. But typically, compared to the alternatives, and this is the funny thing, is people, they'll start learning about this strategy and they start having this fantasy about, well, maybe if I did this, would they do that? It's like, whoa, whoa, just put your feet on the ground, you know? It is pretty powerful, but it doesn't, it's not going to make you rich overnight. It's basically saying over the next 10, 20 years, I have that much gross income coming in.

I'm going to bring home hundreds of thousands of dollars. How much of that can I keep? And that's really what the focus is. Because I tell people, the reason you making payments doesn't mean you could afford them is because if you could, you'd be sitting on a pile of cash right now. I haven't met many people sitting on piles of cash because they've been thinking, oh, my budget, I'm making my payments. And that's why I decided to call the book transforming payments into prosperity. Because it's not that they have, it's not really so much a payment problem.

It's a who gets the payment problem. And when you're the one you're making payments back to, that's how you redirect your cash flow. But you can't do that in the traditional means and the traditional platforms that people are used to. And that's why I call it a payment matrix. And that's an awesome name for the book. A hundred percent agree. And Tony, before we open it up to the rest of the group and allow others to join and ask questions and throw questions in the chat, where can people get the book? Also, I know you do consultative work with different families and individuals.

How can they tap into that as well? If you want to get a copy of the book, you go to Amazon and just search for transforming payments into prosperity. or if you want, we have an e-book that's a little bit less expensive and you can go to prosperity.smartest wealth.com. And if you're looking to, you know, if you want to, you know, talk with me and my calendar's on my site, you can go to tony.com. And, you know, I've got some resources out there for you. And if you just want to get on my calendar, it's all set up to, you know, hopefully, I mean, my calendar is kind of crazy, but I do my best to accommodate. I do have a team of people that work with me. So if we can't get you on my calendar, there's people I've personally

trained that know how this stuff works. Absolutely. And we're going to put all these links into the show notes and we'll make sure we push it out to our group for those that want to connect. But we're going to open this thing up. Is there anybody who is on live? Please feel free to click that join live button at the bottom. I already see questions in the chat that I'm going to kick this off with, but feel free to join live and or ask questions in the chat, and we will kick this thing off for the next 10 minutes or so. And so, Tony, first question is, so we talked about the self-finance piece. Why not just put it into a high-yield savings account where you can earn 4% to 5%?

Why put it into the insurance piece? Well, if you put it into a high-yield savings account and then you use it, it's not earning interest anymore. So that's really the reason. That's the idea behind why not pay cash for a car? Because once you take that $30,000 out and buy the car or whatever the amount is, that's no longer working for you. So the idea is that's where the dual-duty dollar comes in.

It's where you can use the money today while it continues working for tomorrow. And you don't have to look at your dollar like you know, Sophie's got to pick between one or her two kids who she's taken and, you know, going to the camp with. It's that's the biggest difference is that you are able to use the money while it's still earning interest and dividends for the future. That makes a lot of sense. And I'm going to kick it over to Justin. What other questions you got?

Hey, Tony. First of all, I want to thank you for taking the time to do this, man. Great stuff. It was definitely, definitely tuned in here. I heard you missing your family banking early. Is that the concept of the Rothschild family invented? Well, that's interesting that you bring that up. That's in the book.

I have a part where it's myths and realities. The Rothschilds, they actually started real banks. Okay. And I actually looked into, there was a time a number of years ago where I realized, you know, I want to be a nice bank. And I was going to start one. I flew out to the East Coast, met with some people. And when I got done, I was like, you know, I don't think I'll have any internal organs

left by the time they take them all to get this thing started. but when it comes to the private family banking that we teach using an insurance platform, it's the easiest way where you can mimic what the Rothschilds did, but they used actual banks. I mean, they, you know, that's a different platform. But the idea is the same because it's putting money into a platform that you can access while it's still working for tomorrow. That's the biggest thing. People, they think you can work for money or money can work for you.

problem is when you're in debt, money's working against you. And so we got to get out of debt and we can do that simultaneously, pay off debt and build tax-free wealth with the same dollars at the same time, because really what's at risk is, is whatever that debt payment is, that total you're making every month. That's the amount of money I want to see you liberate, because that should be yours. Right now, it's the interest and the way the numbers work. It's just totally unfair. So you've got to work towards liberating that total amount of cash.

that you're paying every month. And when you do that, I mean, just imagine if you didn't have a car payment, if you have a mortgage payment now, imagine not having to make that. Imagine no credit card payments. Imagine that when you needed to go on vacation, you went online. And yeah, you put it on a credit card because you know, you're getting the points, right? And you're getting the whatever else they're doing. But when you get back from vacation, you go online, take the money out of your private family bank,

pay off the credit card and then just pay yourself back. The same payment you would have made anyway. that is allowing you to keep cash flowing back towards your resources as opposed to the banks. That makes sense? And it's always very interesting, right? You meet people from all different walks of life. And there's a lot of people out there, especially on social media, and that you can hide behind like a lens and things that nature that get so angry at folks for all this person's not paying X amount in taxes. I have to pay X amount.

When you realize that we're all in the same game, right, that has the same rules across the board, you start to want to. to learn different methods like these because this is how the wealthy are staying wealthy, right? The example I think about in a completely different realm is Elon Musk with Tesla, right? Like he could be taking a salary, but he's like, no, I want to take it in stock. He did this way back when. And now the stock's going up in value and he's taking loans against stock to live life, but you're not paying taxes on those loans because they're loans, right?

Right. And they're loaning because the value of Tesla keeps going up. So he's keeping all that in there going up. And it's similar thing here, right? You just got to start early and kind of build it up over time. Yeah, and that's the reason people think they can't do it because they see people, I'm not Elon Musk. I'm not like, he's like the real life Tony Stark, you know.

I can't do that. Well, you don't have to. Just in the second chapter of the book, it's called, who do you think you are? And what I talk about is most people what they think of themselves as they look at their personal finances through what I call the budgeting lens. What's coming in, what's going out, what's left over. You know what the payment matrix looks at you as? The multi-millionaire you are in the making.

They're looking at your lifetime. It's called the lifetime value, how much total income you'll generate during your working lifetime. And they see the two or three million dollars and they're like, hmm, how can I get as much of that as I can? And they're doing it really, they're doing a great job of it. And so we have to begin to think of ourselves differently. You got to be thinking of yourself, you know what?

I don't feel like it, but I am a millionaire in the making. And I think I need to change about the way I feel because if I am, why am I allowing everyone else to profit off of my, I like to say, my blood, sweat and years of work? And I have one last question. Sure. And then kind of a statement. So what is it, so once you set this up, does it kind of become automated? Is it something that you have to keep looking back into?

Or once you kind of set it, you can kind of forget it and you just let it continue to grow as you move forward throughout life? Yeah. basically it's just like a normal life insurance policy. You know, if you pay an annual, you just make one payment a year. If you're paying it monthly, it just comes out of your account. The difference is we're putting as much cash into the cash value from day one. So the cash value is growing by hundreds of dollars to thousands of dollars a year. And as it begins to compound and you get dividends and more interest, you've got tens of thousands of dollars in there. And if you ever wanted to access

it, I've done it all the time. You know, go online and say, you know, For instance, you know, when I had to put a new tires on my car last year, have you seen the price of tires lately? Oh, my God. I was like $700. And it was like I'm trying to, you know, I have seven kids. So I'm like, you know, I don't want to, you know, I'm pretty frugal when it comes. I'm driving a 10 or eight year old minivan that has, you know, it's paid for. And I'm like, you know what?

I signed up. I'm like, you know what? I'm not going to use my money the way everybody else does. I put it on credit, got the tires installed, went home. No, Tony, I think that is spot on. We appreciate you for joining us tonight and sharing some of your knowledge. I'm definitely one that's going to be, one, getting the book, but two, setting up some time so that we can talk through this in more detail. And I can't wait for the rest of the community that wasn't able to join live to hear this as well.

Tony, thank you for joining us tonight. Absolutely. And for everybody, listen. come on now thank you tony and for those that are listening if you like this episode go ahead and leave a comment for our guy tony go ahead and like subscribe and we will definitely put on more tony thank you see yeah join us every wednesday at seven p m eastern as we explore different types of investments that can fast track your path to financial independence