Marketing Secrets with Russell Brunson - Payoff Your House First...

Episode Date: September 12, 2017

Against all traditional investing advice, this should be your number one focus after you launch your company. On this episode Russell talks about paying your house off quickly so you can have the ability to risk more. Here are some of the amazing things you will hear in today's episode: Why Russell is giving the opposite advice as nearly every investor there is when it comes to paying off your house. How Russell was able to keep his wife in the dark about some of the hardest times in the business. Why having the stability of a paid off house gives entrepreneurs the ability to risk more. So listen here to find out what would happen to Russell, worst case scenario and why he wouldn't lose his home or family. Transcript - https://marketingsecrets.com/blog/payoff-your-house-first Learn more about your ad choices. Visit megaphone.fm/adchoices

What's up everybody, this is Russell Brunson. Welcome to a late night in the wrestling room edition of Marketing Seekers Podcast. So the big question is this, how are entrepreneurs like us who didn't cheat and take on venture capital, we're spending money from our own pockets, how do we market in a way that lets us get our products and our services and the things that we believe in out to the world and yet still remain profitable? That is the question and this podcast will give you the answers. My name is Russell Brunson and welcome to Marketing Secrets.

All right, all right, everybody. So I spent almost five or six hours today with the kids in my little piece of heaven here cleaning today. So this is an external garage in our house that I decided to turn into a wrestling room for those who have never seen it before. And it's awesome. I've got wrestling mats. I've got gladiator walls. We've got Bulgarian bags over here. We've got paintings of my favorite wrestlers back here.

We've got throwing dummies. We've got the girls' stuff here for the girls. These are actually the wrestling mats I used to wrestle on in high school. They were on my back deck growing up. So this little nostalgia for you, that's cool. And then, yeah, this is the weight room side of it. So this is where we do what we do, and it's awesome. So as I was working today, yeah, because it's out, like I said, we're out kind of the middle of nowhere. So there's a lot of spiders and bugs and stuff. So all these bug trappers and stuff. And so probably every three or four months I come and do a deep clean.

I have to get the vacuum out and throw away all the dead spiders and like re-clean. And like, yeah, it's kind of a nightmare. But it's really fun. Now it's clean. Oh, like it's so clean right now. I just, I love it. It makes more work out. So, but anyway, during all of this craziness today of cleaning having fun like that um i was

checking my phone a couple times throughout and i saw a post uh from julia stoyan and i thought it was interesting because she asked um hey should i pay off my house or should i pull the money out and use that for other investments and things like that it's funny because i gave my answer it was like the exact opposite of what i think a lot of people thought I would think. And I think it's good. So I'm going to give you my advice right now. Because I know when I was a little kid, my dad, who's an entrepreneur and has a couple of businesses and, you know, someone who first got me all excited about this whole thing. He used to always tell me, he's like, you have to pay off your house.

You have to pay off your house. Like pay off your house as quick as you can. And I remember because I was like, okay, that's good advice. And then when I got older, I remember reading rich dad, poor dad and read other like investment books. And like, they always talk about how a house is a bad investment. You need to, you know, like keep, keep the money as low as possible. And then they like use that to pay off, you know, like keep your house just down to the minimum pay monthly payments and keep that money and go and invest in other things that can produce more money.

And logically, that makes sense, right? If I was an investment dude teaching people investment, I'd be like, yes, you should not pay off your house. Just keep the, you know, keep the payments or keep, you know, keep the equity in there as low as possible. Strip the cash out because you can use that in other investment vehicles. So it makes sense as an investor. But I don't consider myself an investor. Now, I am getting dabbling in the cryptocurrencies. Todd Dickerson, my partner at ClickFunnels, is making insane amounts of money,

so he's showing me the ways of the crypto world. But I still don't ever consider myself an investor. I consider myself an entrepreneur. And it's funny because when I first started reading those books, I started believing that, started believing that. And then I talked to my dad, and I was I was like dad why don't you pull all your money because my dad's like buys houses pays them off in the cash flow

buys houses pays them off cash flow and then he did his own house and I was like dad what are you thinking you're crazy and I remember one night he just kept telling me he's like Russell you have to understand there's something about knowing that your house is paid off

knowing that worst case scenario that your house has paid off. The knowing that like the worst case scenario that your house is there, it gives you the ability as an entrepreneur to go and risk. And I was like, huh? And I don't think I really got it. Like, you know, I heard him. I'm like, ah, you know, young son thinking he knows everything. And, um, I don't think I got it at first. I was just like, okay, okay, whatever know the next 10 next decade of my life started happening after that and in that decade i've seen some really big ups and some really big downs and some really bigger ups and some big downs and right now i'm on an up cycle and there may be a time i go back down and that sucks and scary and i have a lot of fear and anxiety around that um just because i've cycled cycled twice and I know that feeling, I know the fear, I know the, all those things. I have a

constant, I think part of the reason what drives me so hard and people always ask like, why don't you slow down, dude, you're doing pretty well. I'm like, cause I have this like internal fear of like, I remember what that was like to cycle. I'm trying to like protect myself through the hustle or through the, I don't know, whatever, whatever that is. Um, and so I think that's a big driver force for me. Um, but during this, these cycles, um, and luckily we recovered from them. Um, but a couple of things that I, that I, that I noted, um, uh, things got really bad a couple of times, but at the same time, like I never, I'm just probably wrong, dude, but I never told my wife a lot about what was happening. And she found out later. Actually, she was at Last Fun Hacking Live where I did the presentation on all my failures. She got saw a few episodes back, and she was like, what?

She's like, I didn't realize it was that bad. I'm like, oh, I didn't really tell you. I'm supposed to be the man. I'm supposed to be like, anyway. But for her, I knew like i had to have security so i knew how much like we there's an amount of money every single month that she would that she got that would like cover the rent or not rent our house payments our bills and stuff like that i just knew like as long as i can make at least that like i could i was okay risking and trying and doing things as long as

in worst case scenario like my stability my foundation was set and so um and so uh that was that was it and like during those those rocky scary times and everything it was just like i knew the worst case scenario i could always produce enough money that she that like nothing at home was affected so it gave me the ability to risk and to roll the dice and to try things and so for entrepreneurs um i think that sucking the cash out of your house investing investing it in other places is the worst advice ever. Because then you're on this unstable foundation. Sure, you have more money to invest. In theory, you can make more money.

All sorts of things. But it takes away your ability to risk. Risk is what makes an entrepreneur great. We talk about the risk. We have to jump off cliffs all the time. But risk is scary. And so like the only way for us to be able to increase the level of risk tolerance we have, I think is also to increase the stability tolerance on the other side, right? Like paying off your house is smart because worst case scenario, if everything, if all the crap hits the fan, everything falls apart.

If you've done that and you've paid off your house, worst case scenario, you, you still have the stability of a home for your wife and your kids and your, you know, whatever. Um, and that is like, that's the key. That's, that's like, that gives you the ability now to go and do the crazier things. Um, yeah, like if, anyway, so that's my advice for all you guys pay off your house, paid off fast, pay off as quick as you can. Um, because do that, and as the stability, the anchor, gets stronger and stronger and stronger on this side, your ability to risk over here without the fear of losing that, it gives you the ability to risk more and be able to do what you need to do.

Because entrepreneurship is a lot of literally rolling the dice. This viral video we're doing, I keep telling them when I'm like, you know, typically my investments in our business are very strategic, right? We create a funnel, we invest some money, we get it converting and then we ramp it up really fast. Like I'm not risking a ton. Like this is the biggest one where it's like to create the video, we had to write a $500,000 check.

Like, okay, there's half a million dollars, right? Put it all in black. And then, you know, with the launch party man launch party between everything we've done it's probably another three or four i mean it's close to man when i'll send it it'll be close to a million bucks like all on black like okay let's go and hopefully it'll work right but the nice thing is that like because of the stability on other things we've set up like i can take that risk and it's okay because worst case scenario, it'll be okay. I've talked about this in other episodes of the podcast.

The thing that so often keeps entrepreneurs from success is the fear of the worst case scenario. You have to be able to look at the worst case scenario and be like, I'm okay with that. If you are, then you can jump forward. Some entrepreneurs may never look at the worst case scenario. We don just always, like we don't want to look at the thing that we're scared of, right? So we see the thing we want going forward, but there's this nagging thing in the back of your head. You're just like, worst case scenario, what if I go bankrupt? What if my wife leaves me? What if my kids think I'm a bad dad?

Like all these fears that are happening. We try to ignore them, but because we're ignoring them, they're still like buzzing in our ear, in our subconscious mind. So because of that, they just keep coming and they keep coming. And I always tell entrepreneurs, like if you you want to be free and, like, be able to risk, you have to stop. You look back and be like, what's the worst case scenario back there? If everything goes to crap, like, what happens?

And until you're okay with that, it's so hard to move forward. So a lot of times we have to stop and say, okay, what's the worst case scenario? Okay? And I remember that. But a lot of times, you know, I've had a couple times, worst case scenario was bankruptcy. Worst case scenario was losing my house. Worst case. And those are, man, those are scary. Now at the beginning, a lot of times that's, you have to take that. You have to have the initial risk and you'd be okay. Okay. If I lose my house, it's okay. If I go bankrupt, it's going to be okay. Um, but as you get, as you start rolling

up into bigger opportunities, bigger risk, bigger things like that, it's nice to look back and say, okay, worst case scenario, I lose my money on this deal. I still got my house, still got my wife, still got my kids. Like that security gives you the ability to risk big. So pay off your house. There's my advice. It goes against all the famous investing dudes, but I think they're wrong. I think most of those guys aren't entrepreneurs like us. So that's what we do. We're entrepreneurs. We're risking. We're making the world a better place and I mentioned this on the Entrepreneurial Scars podcast

the episode a few back about just like if entrepreneurs don't risk the whole world comes to a screeching halt like the government put in bankruptcy

and all these laws all these things to protect us so we can risk and so that's why it's vitally important yeah and it's awesome

so there you go here's the mirror what there you guys are we's the mirror. What? There you guys are. We're all talking together. How cool does that look? If you're listening, you've known what I'm doing before watching the video marketing secrets.com. This is what you see. Anyway. All right, guys. Appreciate you all. I'm gonna go back in, put my kids to bed. It's been a fun day. Um, this room, this look good. It looks clean. Try for some workouts, try for some people to bleed out of our muscles it really hurts sometimes anyway

appreciate you guys pay off your house it'll give you the financial stability you need to risk everything and change the world so thanks everybody and we'll talk to you soon

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