THE ED MYLETT SHOW - Millionaire Money Habits

Episode Date: September 14, 2023

This week I want to talk to you about something that’s near and dear to everyone’s heart.MONEY.I can’t give you specific advice or a great stock tip, but I can talk to you about some FINANCIAL SECURITY PRINCIPLES I’ve used over the years to build a significant amount of wealth.Let’s start with some basics…First, you must create a SAVER’S MINDSET.LOCK THIS IN.If you can’t save money when you don’t have much, you won’t save money when you have a lot of it. Saving money is a HABIT. So, the The very first thing you must decide is if you are A SAVER OR A SPENDER?Part of this includes AUDITING how you spend your money. Do you know how much you spend on Starbucks, Amazon, DoorDash, streaming services, and other discretionary things each month?Next, what is your attitude toward DEBT?The cost to borrow money on a depreciating asset is EXPENSIVE. It can make sense to LEVERAGE MONEY on an appreciating asset, but you’ve also got to pay really close attention to how much and how often you do that as well.Also ask yourself HOW LONG COULD YOU SURVIVE if all your income immediately stopped? Six months? Six years? At some point, you won’t work anymore, and NOW is when you make plans for when that happens, because at some point that will be a reality for all of us.The BOTTOM LINE on your bottom line is this.YOU DON’T BECOME WEALTHY BY MISTAKE.You become wealthy through the right habits COMPOUNDED over time.Become disciplined and zealous about how you handle your DOLLARS AND CENTS.It’s the only thing that makes SENSE if you want to become wealthy over time.

This is the Edm Mylet Show. All right, welcome back to the show, everybody. So excited that you're here with me. I love our solo episodes because it gives me a chance every single week to answer your questions on the show. And so by the way, if you do have a question, you can submit them at Ed Mylet on Instagram, ED, NYLETT, and there's a really good chance that it'll go up on the show. So this week we're going to talk a little bit about money

and financial peace. Now I'm licensed, so I can't give you any real specific investment advice or anything like that, but I can talk to you a little bit today about just some basic principles that'll give you more financial peace in your life and some insights into some of the things I see that are very commonly spread on social media by many influencers that I just don't necessarily agree with.

And so one of the things that I've been very fortunate to do is to build a pretty significant net worth. And I believe part of that net worth was built because of some basic principles that I've adhered to that I want to share with you. And so let's start from the very beginning. Number one, you have to decide that you want to save and accumulate money. It has to become a priority for you. And I'm going to say some things that sound a little bit contrary to what you hear on social media all the time about. I hear people say, you should get rid of all your money, right? You should use debt like crazy. You know, debt on appreciating

assets you should always use. And there's no reason to save cash. You should be investing all of your money. That's just insane. Like some of that's true, but this notion that I keep hearing on social media from people that's like, get rid of all your money and so that you stay hungry. Yeah, you might end up being starving if you do that. And so let's go all the way back for a few minutes

about some basic things that I believe about financial security. I think this is something, by the way, you could share with your children all the way up to somebody who's, you know, 80, 90 years old listening today. There's a few things. There's two types of people in life. There are savers and spenders. They're just are. And you need to know right now which one are you? And how do you know that? You know that based on the amount of percentage of the money you make that you save and I want to say something to you. If you can't save money when you're broke when you're making very little you will not save money when you're making more. That's a fallacy.

People say well once I make more money then I'll save. If you can find a way to save any amount of money right now, build the habit, the pattern of being a saver. And I'm talking about when I was making minimum wage as a bus boy at the whole enchilada restaurant. Yep, that was my job. I was a bus boy at the whole enchilada. The very next job I had basically after that, I worked in an orphanage for $5.60 an hour that gives you an idea of how old I am because that was a minimum wage then. And in both of those careers, as a young person, it's 17 and 18 years old, and then I got the job at the orphanage when I was 21 years old after college, I saved money.

Now I saved $18 a month into a forced savings program when I worked at the whole in Shalada, and I saved $20 a month when I was working at McKinley Home for Boys. But what happened was, that was money that I never missed, and it was forced savings, and it created a behavioral pattern in me when I was poor and broke that I'm a saver. And so what I went without, I went without the Starbucks' of the world. I made my own coffee. I brought my own lunch to work. These things like very insignificant things, but what I was doing was engraining in myself the ability and pattern of saving. So which are you right now? Are you a saver or are you a spender because you're one or the other.

I've never been addicted to what kind of shoes I had, what kind of jeans I was wearing, the shirt I had, I was much more addicted to accumulating wealth. I got off, if you will, on showing somebody my mutual fund or my bank account statement, much more than I did on what kind of car I drove, and I've always been that way. And I wasn't that way naturally.

And I knew early on I learned that I needed to establish this pattern of which one was I. And so ask yourself this. And by the way, you could make a lot of money right now when you're not saving. You could be making very little. It's an idea that you just begin this pattern of some sort of four savings. Have it taken right out of your account, have it draft out of your account. I don't care if it goes into a, I'm not going to tell you where it can go because I'm licensed or where it should go.

And for the purposes of today's message, there are qualified people you can see in your life that can tell you what to do with that money. But are you a saver or a spender? A really scary thing is when two spenders are married to one another. I hope in your, if you're married, that one of you at least is a saver and that if one of you is a spender, the saver has influence. But when two spenders are married, that is a formula for a lot of toxicity and a lot of stress. This idea that I keep hearing from so many people of get rid of all your cash, get rid of all your cash is insane, right? Oh, it'll keep you hungry, it'll put pressure on you.

Really? No, what it'll do is put stress on you. If you can't be hungry when you're saving cash, and what point does that end? Or do all your life do you just keep spending? Think logically about that. So you're supposed to get rid of all your money to stay hungry, are you that unmotivated,

that uninspired that you have to have no money or very little money to be hungry? There's not other higher purposes and callings that can keep you hungry in your business life. That's so stupid. But I keep hearing it. So stop that nonsense. Of course you should save money. Now there's a difference between saving and investing. There's a percentage of, now once you start to make money, you should have savings, which is just cash. And then you should have investments. And you, I'm not going to tell you where to invest your money. You'll make those decisions. Those are two totally different things. But I can tell you

right now, like to this day, and I'm not exaggerating this, I add up like, what am I spending on my streaming services? What am I spending on Starbucks? What am I spending on DoorDash? What am I spending on Amazon? You should audit all of these things. Like, do you read, and by the way, if you're an addicted spender, shut out your Amazon account, just shut it down. Rep at the amount of money people spend on frivolous things,

silly things, like their DoorDashes or their Uberber deliveries or these things that you could just go to the grocery store and save money or all your streaming services. Plus you still have direct TV, plus you got cable service. These are, this may not seem like it. $8, $12, $20, this adds up to places you could save money. And again, it's that habit. It's that feeling that I love saving as opposed to I love spending. This is so counterculture what I'm saving right now. It's crazy to me that it is counterculture. But I've always felt like I have this huge advantage financially in my

life because like I'm into that, not the other stuff. And then once I had enough cash, then I became an investor and you can decide where you put that money for you, it could be real estate, it could be the market, it could be CDs, it could be treasuries, I have no idea, and I'm not suggesting any of those things, I'm gonna be very clear. What I'm saying is that you should have savings and then investments in their two different things.

But I cannot begin to tell you how many times in my life that because I had some cash saved, I took advantage of different situations. When if you don't have cash, you can't or you don't have investments, you can't. Now secondly, audit where you spend your money. Do you have a budget every single month? You should have a budget. And the first thing in that budget for me is my tithing.

If you're person of faith, it's what you give to God's kingdom. It's the seed you plant. And again, if you're broke, that may be five dollars in the hat of faith, it's what you give to God's kingdom. It's the seed you plant. And again, if you're broke, that may be $5 in the hat at church when it's past. I don't know, but it's some seed you're planting. If you have 100 pennies in a dollar, the first pennies go there. The second pennies, even if it's a small amount, go to savings. You pay yourself first. Let me say it again. You pay yourself first. Let me say it again.

You pay yourself first. That's after you pay God if you believe in that. Okay? Next. Now you have your money that you live on. And then I would audit that. Where am I being wasteful and silly? And I gotta tell you, it blows my mind.

People say we're in a recession right now. I don't see that. I mean, maybe we are, but I got to tell you I go to airports They're full. They're packed with people, right? I see people using their credit cards on at airport food and spending Do you know how much a bothers me to buy a bottle of water to this day? I'm worth hundreds of millions of dollars I still cringe when I buy a $5.60 bottle of water at an airport. Yet I watch people who have no money frivolously spend it there. Still it's like, oh my gosh, I can't believe I'm doing that. I still scrutinize

things like that. I still don't feel great when I overspend on Amazon. I don't. I just cut out three streaming services. I'm not exaggerating this. Last week, I'm like, I'm not using this. This is $8 a month. I've watched it three times in a year. Right? That's, it's, it's a hundred bucks a year. That's silly. I could put that hundred dollars somewhere else. I could give it away. So begin to really micromanage and audit where you waste money. Where you spend money. What type of gas do you put in your car? I'm not kidding. What kind of car do you have? What Where you spend money? What type of gas do you put in your car? I'm not kidding.

What kind of car do you have? What's your car payment? What could you do with that? If the car payment was half and it was not as nice a car, what could you do with that extra three or four, $500? And when you look up the rule of 72 and how money compounds, what could that do for you? So look at that.

The next thing is your debt. Why are you spending money to buy things that impress people who don't care that you can't afford? Who gives a crap what they think? Why would you do that? Why would you put it at 15% interest or 20% interest on stuff that no one gives a crap that you have to impress people who don't care? Who are hating on you behind the scenes anyway? people who don't care, who are hating on you behind the scenes anyway. Well, that could be money you're saving or investing in your life. So, stop using debt on depreciating assets and then even debt on appreciating assets. There's a threshold to which you should be doing that with, but you should be scrutinizing

when you do it. And so, I've always tried to get myself to be someone who, listen, I'm going to say it to you the way that I think it. If you're going to invest money and it's an appreciating asset and you want to use debt to get access to other people's money and rates are still relatively low, by the way, people say, Oh, interest rates are so much higher, I've been alive when it interest rates were 18%. So interest rates are still relatively low, money's cheap. If you can end up leveraging debt in order to buy an appreciating asset, you should consider it. But what a lot of people do is they go,

well, I can get the money cheap. They don't really scrutinize. You make your money in most things on the buy, on the buy. So you still have to get the right price. And if you're saving in the stock market, you can dollar cost average. And if you don't know what dollar cost averaging is, you can look at that. you can look into that too.

But the point that I'm making to you is, why not get focused on getting wealthy? You do not become wealthy by mistake. You become wealthy by your habits and your disciplines and your routines and your rituals. And so many people that are in the personal development space, that you've really gotten good at your personal habits, your workout, your morning routine, your meditation, your gratitude, your cold plunge, your, your, the

food intake that you have. You've these great routines. What's your financial routine? What's your financial routine? Well, I'm going to get around to that. You know, I'm only 21. I'll get around to that really. Well, I was getting around to it when I was 17.

And just for the record, you will never get around to it. And typically someone who's a spender will attract another spender because they like shiny things. And they can both go out and impress a bunch of people with shiny things that nobody gives a crap about. Not any really good people. I'll be really honest with you. Some people do this, but I don't. I don't know what kind of watch you're wearing. I have a Rolex on right now. Um, and, uh, I didn't buy a Rolex until I was worth a hundred million.

I bought my first new car, brand new car this year. And I'm worth hundreds of millions of dollars. Every single car I have ever bought was used Every car this year I bought a brand new range Rover first time in my life Why would I buy something that depreciates the minute I'd roll it off the parking lot? How stupid and then some of you finance this asset that's depreciating off the parking lot What are you doing? What are you doing? and then some of you finance this asset that's depreciating off the parking lot.

What are you doing? What are you doing? So what's your financial habits, your financial routine, your financial disciplines? Consumer debt is horrible. Try to stay away from it. Even business debt, be careful with, or even debt on real estate. Doesn't mean it's right just because you got debt on it.

And then there's just a certain threshold of debt that I don't want. I love cash. And so this notion that you should get rid of cash and cash is dropping in value because of inflation and all that stuff. There's some validity to that. And then it's also just wrong. Because when the economy changes, cash is king.

And people that have cash, by the way, if you're to get really wealthy, it's a bunch of cash. But it could even be that you are able to get different services or products on discounts when you have cash at your disposal. There's a security and a confidence that comes with cash. I'm convinced that the reverse is true. This lie that if you get rid of all of your cash, you'll be hungry. Just creates more stress. I can tell you that my accumulation of cash gave me strength, gave me confidence, gave

me comfort, gave me the ability to walk away from a dealer at table because I didn't have to have it every single time. Cash is still king. And I'm telling you, I still leverage debt as well. But this notion that should have all this debt and no cash breaks my heart because that advice works great when the economy is going up. All these people who tell you they get rid of all their cash and they're leveraged to the hilt and they're really rich right now, wait till those values come down and the equity

isn't there or when they're loan renews or they're adjustable rate mortgage changes or they just don't have any cash in life. And so I'm a big believer in cash. I'm a big believer in cash. I'm a big believer in savings. I don't believe you need to make millions of dollars to become financially independent. You know, there's different levels of wealth. The first one is just to become financially independent.

And financial independence just basically means that you saved enough money where that you don't have the necessity for your job. But ask yourself this right now. No matter how old you are, what if you went six months with no income? Can you live? Can you pay all your bills? Can you? If you had no income coming in, right? Do you have enough cash saved? Because by the way, some of those investments that you've leveraged, they can't be liquidated. So these people who have told you

get rid of all of your cash, use debt to buy a bunch of assets, really? Well, what happens if that cash flow's not there? So ask yourself this right now. Can you go six months of paying all of your bills right now if you lost your job? How about six years? How about 60 years? So at one point, at some point in your life,

you won't have a job at some age. And by the way, I just did an interview where life expectancies may be getting to 120, 130, 140, 150, potentially. How much cash do you need? How much revenue do you need to live long term so you don't have to work anymore? That's called getting financially independent. Wealth? That's a totally different thing. But some of you at least need to get to financial independence before you can get wealthy or then stone-ass wealthy, right? And I can tell you that, you know, people say,

well, certain cars go up in value. Yeah, you're probably not buying those cars. Well, watches, they had Rolexes, you know, they got, yeah, they got up to the last five years. I don't know what they'll be worth in 15 or 20 years. Maybe they will be. But I'm not gonna have a bunch of watches and call myself a rich person.

Rich people just have watches. They have cash, they have assets. And so I say this to you today because I love you and I'm concerned about you. I'm concerned about our culture. I go to airports, they're packed. I don't think we're in a recession. I go to a mall, they're jam packed.

I was just in, I was at a very expensive resort recently. Packed with people and next to it, there was a casino. Packed with people, people are spending money like it's water. So I don't know that we're in a recession or people are just delusional right now. In spending money, they don't have. And I get all this past the pandemic. I want to have some experiences, I get all that.

You just gotta decide what makes you happy. What makes me happy is saving. What makes me happy is accumulating abundance and wealth so that I can give to the churches that I want to or give to the charities that I want to and take care of family when they need us. Listen, what's the likelihood of they're not being a financial crisis

in your family in the next five years? What's the likelihood of someone in your family not needing you for something a Medical emergency a cash emergency a tragedy of some sort just life What's the idea? What's the probability the next five years? There's no chance of that? How about the next 10 years and so what if you found yourself with no cash and just a bunch of dead and assets at that time? You can't help them. So this this stuff is nuts, which being taught out there. So the bottom line is this. What I want to do and encourage you today is just to become more aware financially and this notion that I'm going to get my life together,

myself together, my business together, my body together, my relationships together, and then my faith together. Once all of that's done, the relationships together, and then my faith together. Once all of that's done, the money thing will just take care of itself. Or I'll eventually get around to the money thing. Are I so young or whatever? That's just not how it works. You start it now. You start with a budget now.

You start scrutinizing your money now. You start trying to become a saver now. And again, I want to be clear. I have leveraged debt on appreciating assets and made a lot of money doing that, but I didn't just do that. I also saved money because opportunities, and I'll be honest with you, I've made more money with my cash than I have with debt because when you've got cash in difficult times, you can get deals and steals and amazing opportunities because you can pull the trigger immediately

when someone needs it immediately rather than waiting for financing waiting this so both are powerful. But man, my heart breaks when I see these very influential people constantly telling you this stuff. And by the way, I know many of them and they also have cash. They also have cash. And so it's both. It's not one way or the other. I wish I could give you more specific financial advice. But today's a wake up call. You want to have more confidence when you walk in a room, have some money saved. You want to have more confidence and bliss and peace in your life. Have a pattern of being frugal. Have a pattern of being

smart with your money. Listen to me. Show me a human being who is under control financially. Financially under control. They have disciplines. They don't give into the temptations of immediate gratification. Show me a human being who shows me emotional control and discipline financially. And I'll show you a human being who's probably a pretty happy person. You show me someone who is out of control financially, but thanks are gonna get control over their emotions

and their relationships in these other areas of their life. I'll show you a person living a delusion. How you are doing financially at every stage of their life, I'll show you a person living a delusion. How you are doing financially at every stage of your life is a reflection of how you were doing in almost every area of your life. And don't you dare say to me right now, hey, that sounds good, but I'm on minimum wage right now. I know it's very, very difficult, but if you could begin to, if you're paying, if you're a person of faith, just a little bit to your tithing if you could just do a

Little bit to some savings if it's five dollars a month Five dollars and you go ahead. I don't have it. You do You do there's five dollars somewhere if you're employed you do Ed. I've got this many kids as much. I know I'm telling you There's five dollars somewhere to save. You go, well, $5 isn't going to amount to anything. It is because it's a habit. It's a belief.

It's a pattern. It's a routine. It's a part of who you become. And I'm telling you right now, when you go from that minimum wage and now you're making $20 an hour and $50 an hour and then you make a hundred grand and 200 grand. If the pattern all the way back in the beginning

is to spend everything you get, you'll find a way to do it. You'll have a nicer car, a better apartment. You'll eat nicer restaurants. You'll upgrade the way you drink when you go out and all of a sudden the money's gone. And then you go, well, no, now I'm an entrepreneur and I'm making 250 or do you know how many people that are nodding right now that go, man?

I have the same amount of money saved that when I was making 50,000, that when I made 100,000, I just went from having a Honda to a BMW and I went from a two bedroom apartment to I rent my house. And then there's people listening to go, man, when I went from a hundred grand to 250 grand I basically have the same life except now I drive a bends I Got a bends and my partner's got a nicer car too and now I got you know a decent watch and much nicer clothes And I'm eating it mastros once in a while and the truth is There's no tangible difference in where I am financially How many of you right now know somebody like that or are not?

And by the way, then I got to 400, 500 grand a year. And now I bought a house. I bought a house. My business debt is up. My credit card bill seems to get much higher every single month because now I am not disciplined on Amazon. I've got 19 streaming services. I door dash my meals.

You know, I don't pay attention to what I pay for my airfare or other things I do. And all of a sudden, man, I just spend, spend, spend, spend. And the truth is, now I'm at $400, $500 grand a year. And I'm not that much further ahead financially than I was when I was making $50,000 a year. And then what ends up happening is you go, it's not worth it to keep getting more and more income. And that's when people stall out, most people stall out, even if they're really good, 250, 300, 400, 500 grand a year,

why do they stall out? Because the truth is, their financial life didn't change very much. They got a nicer car, they got a house now, they eat nicer restaurants, they've got nicer clothes on their body, but the truth of the matter is, they're really not that much further ahead financially than when they were making minimum

wage or they're making $50,000 a year because the habits weren't ingrained back then. I promise you that I'm right right now and I promise you most of your friends that you think are rich, that make 100 or 2 or 3 or 4 or 500 grand a year, they are quietly going, he's a completely right about this right now. He's a hundred percent right. The truth is most people can't go six months without their paycheck and almost nobody can go six years. And that's sad because it could be different if their habits, their beliefs, and their patterns were different. And so today was just simply a wake up call to create more financial peace in your life even on a limited budget.

And if you don't have a limited budget, this is a huge wake-up call for you to begin to become a saver and have a conversation with whoever you're in a relationship with about your spending and saving. Begin to scrutinize it. Begin to break it down. Begin to have a real budget. Begin to have some outcomes and goals for how much you want to save as a percentage of your money.

And then let the professionals you deal with in your life or your own research by the way determine where those money should go. That's not the topic of today and I'm licensed so I can't go through any of that with you. But I can't talk to you about basic blocking and tackling as a human being of creating financial peace in your life. I hope today helped you. I really do because it's important for me to get this off my chest and to share this

with you. I want your family and you at peace. I want you feeling like you're making progress. I want you to feel like you've got the right routines and habits and disciplines and every of your life, including the financial area, because it won't just get fixed when you fix the other things. You got to address it right now and it's fun to do it and you'll feel better about yourself when you do this. All right, if today helped you, please share this with somebody that you love that you care about who needs to hear this. This is one that can go to every person at every single age. Financial saving, financial peace, having a financial strategy in your life

is just an awesome part of pulling all the other areas together. And it's something you deserve, your family deserves, and your worth it. God bless you, everybody. Max out. This is The End My Let's Show. [♪ OUTRO MUSIC PLAYING [♪