The Personal Finance Podcast - 10 Dangerous Money Lies We Tell Ourselves (And How to Change Them!)

Episode Date: June 19, 2023

In this episode of the Personal Finance Podcast, 10 Dangerous Money, lies that we tell ourselves and how to fix them. How Andrew Can Help You:  Join The Master Money Newsletter where you will become smarter with your money in 5 minutes or less per week Here! Learn to invest by joining  Index Fund Pro! This is Andrew’s course teaching you how to invest!  Watch The Master Money Youtube Channel!  Ask Andrew a question on Instagram or TikTok.  Learn how to get out of Debt by joining our Free Course  Leave Feedback or Episode Requests here.  Thanks to Our Amazing Sponsors for supporting The Personal Finance Podcast. Chime: Start your credit journey with Chime. Sign-up takes only two minutes and doesn’t affect your credit score. Get started at chime.com/ Shopify: Shopify makes it so easy to sell. Sign up for a one-dollar-per-month trial period at  shopify.com/pfp Policygenius: This is where I got my term life insurance. Policygenius is made so easy.  +To get your term policy go to policygenius.com and make sure your loved ones are safe. Factor 75: Head to factormeals.com/pfp50 and use code pfp50 to get 50% off your first box. These are amazingly easy and nutritious meals.  Links Mentioned in This Episode:  8 Ways to LEGALLY Avoid Paying Taxes Like the Rich (Save 6 figures+ in Taxes!) The 5 Step Master Plan to Talk to Your Spouse or Partner About Money The Stairway to Wealth (Where to Put Your Money In Order!) The Stairway to Wealth 2.0 (The Order You Should Put Your Money in!) Connect With Andrew on Social Media:  Instagram  TikTok Twitter  Master Money Website  Master Money Youtube Channel   Free Guides:   The Stairway to Wealth: The Order of Operations for your Money  How to Negotiate Your Salary  The 75 Day Money Challenge  Get out Of Debt Fast  Take the Money Personality Quiz Learn more about your ad choices. Visit megaphone.fm/adchoices

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Find your advisor at IG Private Wealth.com. On this episode of the Personal Finance Podcast, 10 dangerous money lies that we tell ourselves and how to fix them. What's up, everybody, and welcome to the personal finance podcast. I'm your host, Andrew, founder of mastermoney.com. And today on the personal finance podcast, we're going to be talking about the 10 dangerous money lies that we tell ourselves and how you can fix those money lies. If you guys have any questions, make sure to hit us up on Instagram, TikTok, Twitter, at Master Money Co. and follow us on Spotify, Apple Podcasts, or whatever podcast player you love to listen to this podcast on. And if you want to help out the show,

leave a five-star rating and review on Apple Podcasts or Spotify. It truly means the world to me when you leave those five-star ratings and reviews. I read every single one of them. So today, I am really excited to dive into these 10 different money lies that we always tell ourselves. And if you've seen us write on the Master Money newsletter, and if you're not subscribed to the Master Money newsletter,

I teach you how to build wealth in five minutes or less, so make sure you check that out. It's always linked up in the show notes. But you're going to see us writing about some of these different money lies that we've been talking about. And today I'm going to go through 10 different ones that we have not talked about yet on the newsletter.

And I'm really excited to go through these because these are really powerful things where if you unlock this in your brain, if you think some of these or this is something where you subconsciously think because of how you were raised, then what you're going to see is there's going to be a different motivator

for you to learn how to build wealth. So I am really excited in this episode. to go through each and every single one of these money lies because a lot of us tell ourselves these money lies when they simply just are not true in a lot of situations. And we're going to go through some of these and I'm going to show you how to solve this situation if you are telling yourself money lies. And at the end, I want you to kind of think through what other money lies could I be telling ourselves. People also call these invisible scripts. They call them a bunch of different things. But I want you to think through why you think this when it comes to everything. And I want

you to think through, is this really the best option for me going forward? And you're going to see exactly what we're talking about here in a second, because what a money lie is, it's something that you've been telling yourself for a long time, and it's truly just a limiting belief. What we believe here on the personal finance podcast is that we believe anybody in this world can build wealth, and we're going to talk about that here shortly. So really excited to dive into this episode. Without further ado, let's get into it. All right, so money lie number one is the inability to change, which is I am not capable of building wealth because my family has never had money. This is one of the money lies that I am most passionate about because when we originally

started this podcast, my vision was that somebody would find this podcast in a middle of a very poor area. This could be any type of area, maybe blue collar, maybe a very, very poor area. Maybe they're from another country who is a very poor country. And we have people listening all over the world. It's amazing when you look at the world map of people who listen to this We're in the top 10 charts of a bunch of different countries out there. It's amazing when you see how many different countries are represented listening to this podcast. And one of the most amazing parts about this is if you have the financial education and you have the motivation to do so, I believe anybody in this world can build wealth. No matter where you came from, no matter what your privilege was, I believe that you can build wealth.

And that's what the premise of this podcast is. Imagine this for a second. If you were poor growing up, it doesn't have to stay that way. You don't have to be poor going forward. Why? It starts with one person in your family to change that family tree to start building generational wealth. Why not let it be you? If you have the financial education, this is all that you need along with the psychology to motivate

yourself to move forward in order to build wealth. That is all you need in order to change your family's tree. Now, let's get real here. I understand that privilege is very real. We've talked about that in way past. episodes on this podcast before. Some people are born very privileged. They have a very wealthy family. Some people are born with some privilege and some people are born with no privilege whatsoever in a very poor circumstance. In all three circumstances, you're going to still have hurdles that you have

go through, but some people are going to have an easier time than others. I get it. Privilege is there. Some people who are born into wealthy families, they're going to have more connections. They're going to have more people around them. They're just going to have that privilege available to them. But guess what? Even if you're born in a poor environment or even a middle class environment, you can turn this around for your family. But you have to take a lot more action. Yeah, you might have to work harder. That's the reality of all of this. Is it fair? No. But is it the reality? Yes. And if you accept that reality and understand, I'm just going to have to work harder than most people have to work at this, who were born with privilege, then I can make a massive change in my family's

trajectory. And that's what I want for you. That's what I want for each and every person listening to this podcast is I want you to learn how to build wealth and I truly believe that you can do that. I want millions and millions and millions of people to learn how to build wealth from this podcast. And I want to bring as much value to you as possible so that you can do that. You have the power to make the difference. You have the power to make a change. You can tell I'm so passionate about this. Henry Ford said this.

If you think you can, then you can. If you think you can, then you're right. So no matter what, if you think you can or you think you can't, you're right. but building wealth is something that anybody can do, and I truly believe that. Number two, I am waiting for the perfect time to start investing or to keep investing. Okay, so with this one, I get DMs all the time from people saying, hey, the market is a little too high right now? Should I just hold my money?

Should I wait for the perfect time to start investing? Is that something that I should be doing? Or people will say, I've been investing for a little bit, but my money's not making any money. Should I just stop contributing to this account and then wait for the market to correct so that I can start making money on my money. Now, if you know me or you've listened to this podcast for any amount of time, you know what my answer is going to be. There is no such thing as the perfect moment. There is no such time as the perfect moment. Now, this goes for everything in life. This goes for

starting a business. This goes for investing. This goes for starting a budget or an emergency fund. There is no perfect time in life to literally do anything. But what you have to do is you have to get started and you have to stay consistent and you have to be persistent and you have to have to have that grit to continue on. That is where success is made is between all of those roads put together. So if you have a reasonable understanding of something, including investing, then you should be continuously investing over time. Now let me show you some data that talks about this because there was a study done that demonstrates the growth of $10,000 in the S&P 500 from December 31st, 2006 to December 31st, 2021.

So this is amazing statistics that's going to completely change your mind if you're waiting for the right time. And I'm putting this on quotation marks if you're not watching on YouTube. So this has to do with what happens if you actually just stay invested over a long period of time? And what happens if you miss some of the best stock market days that are out there because you're trying to time to market? So if you stayed invested for 15 years and you invested $10,000 over that time frame, your balance will be $45,682. and your total return would be 10.66%. This is just staying invested. Market's going to go up. The market's going to go down. You're staying invested through the Great Recession. You're just hanging on in there. I know it's tough. I know it's stressful. I know there's anxiety going on when the market

tanks like that. But you just stay invested for those 15 years. If you just missed the 10 best days within that time frame, just 10 days, meaning you maybe you started to day trade a couple times. You got really nervous and you got out of the market and then you got back in the market later on, but you missed the 10 best days, your return gets cut in half. 5.05%. Just 10 days missed out of 15 years and your balance would only be 20,929, where if you just stayed invested, your balance would be $45,682. If you miss the 20 best days, this is so crazy, your return would go down to 1.59%.

So over the course of 15 years, if you just stayed invested, 10.66% rate of return. If you missed the 20 best days, just 20 days, 1.59%. and your balance would drop to $12,671. You can make more than that in a high-yield savings account right now than you could by missing the 20 best days. If you miss the 30 best days, even worse, you have a negative rate of return, negative 1.18% and your balance would be $8,365.

And if you miss the 40 best days, $5,786 in your account, and your return will be negative 3.58%. This is absolutely incredible data that tells you if you just stay invested for the long term, you will be able to build wealth. Warren Buffett talks about this all the time. If you're not willing to hold a stock for 10 years, don't even think about holding it for 10 minutes because you have to stay invested for the long term.

When Brian Ferraldi came on this podcast and he's going to come back on this podcast in a couple of weeks, but when Brian Ferraldi came on this podcast, he gave us some crazy data on the S&P 500. If you haven't heard that episode, it's called Why Does the Stock Market Go Up? And in that episode, he talked about people who invested in the SMP 500, historically, if they stayed invested for 20 years or longer, they lost money zero percent of the time, meaning they made money 100 percent of the time if you stayed invested for 20 years or longer. Their safety in staying invested. There's safety in investing for the long term. And let me give you another indicator just to think about this as you go through this process.

You've heard me say this a million times if you're a long time listener of this podcast. But take out your phone and look at the stock market chart on your phone and look at it for the longest time horizon that you can pull that out for. What direction does that stock market go? It goes in one direction which is up. Over the long run, the stock market historically has gone up. Now, you may say, hey, historic performance is not indicative of future results. Everybody loves to say that. But that's all we have to go off of is what the reality is.

So making sure that you understand, we can look at some historic performance and maybe it's not going to return 10. over the next 50 years. We don't know what it's going to return. That's one of my fears is it's not going to return 10%. So that's why when we run models, we look at 7 to 10% to make sure that we have some safety net built into there. We don't know what's going to happen. I don't have a crystal ball. You don't have a crystal ball. So there's no reason to get in and out of the market or wait for the right time in quotations. So we got to make sure that we are doing the right things when it comes to investing our dollars. So here's how I want you to reframe this. There will never be a perfect moment to start investing, but if I'm prepared, now is the right moment. That's how I want you to think about

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and they don't ever say this, but you see people relying on this a lot more now than they ever used to, where they are either relying on the government to bail them out, or they are relying on somebody else to bail them out, like their parents or their grandparents or whoever else. And listen, I am all for help if you need it. I am all for it. If you need help, I have an entire fund in my budget that is to help people out.

I am completely all for that. But what I am not for is you relying on that as your plan B. So here's what we're going to talk about here. So over 64% of millennials surveyed from a survey from the college investor said that they received financial support from their parents. And over 34% of millennials surveyed said they are still living at home with their parents. And 58% of those who receive financial support from their parents say they are receiving more this year than they did last year.

And 54% said the value was $500 or less. And of millennials receiving financial support from their parents, 74% say it enables them to save more money personally each month. Listen, like I said, I'm all for you getting help if you need it. But what I am not all for is you relying on it as a crutch for the rest of your life. And this is what I've seen a lot of folks doing as of late. And some people you need it. I get it.

Sometimes you need to have this help. I get it. So I want you to hear what I'm saying here. But I don't want you relying on as a crutch. Because what's going to happen here is it's as a comfort. thing for you, you can rely on it, but then you're never going to really grow up financially. And what I want you to do is I want you to learn how to handle your money properly because then once you can handle your money properly, you can really accelerate and start to truly,

truly build wealth. But it's very hard to build wealth when forever you've been relying on a single person. And so you're willing to make mistakes all the time because that person's going to bill you out every time. There are going to be times in life where that person is not going to be able to bail you out or that entity is not going to be able to bail you out. And you've got to figure out a solution to that problem. So when you find yourself in a hole, what if you can just bail yourself out instead? The way to do this is with the emergency fund. This is why the emergency fund is so incredibly important because financially the emergency fund is your own personal bailout. And honestly, when the money's just there in your emergency fund, it is one of the best feelings

in the world. Imagine if something happened to you, maybe your car broke down and if you're used to relying on your parents or something else, imagine if something happened to you and you didn't have to call up somebody for money. And maybe you've done it so many times that you're used to it at this point in time. But imagine if you didn't have to do that anymore. And you could just solely pick up the issue on your own. You could dig yourself out of your own hole. This is the amazing part of having the emergency fund because there's no stress whatsoever. The money is just there. And there's power in having the money just there, especially when it comes to your personal finances. This is what I love about the emergency fund because there's been so many

instances, especially the first time I built up my emergency fund. I remember I had a car breakdown. And it was a $2,500 repair, which is a ton of money for me back then. I was making $30. $30,000 a year. But I just had the money there. And all of a sudden, I was like, wow, this is the least stressful situation I've never been in that's been unexpected with my money. The money was just there. And when you have the money there, all of a sudden, stress melts away and anxiety melts away. Sure, maybe you're worried about running out of money at some point in time. You're worried about a bunch of other things. There's still going to be stress involved with money. An emergency fund doesn't just automatically zap that away. But it significantly can reduce that.

stress. And that's why we talk about, I believe that money can actually bring you more happiness because it reduces that stress and anxiety and helps you just sleep a lot better by having the money there. Number four, the only reason why somebody else can build wealth is because they just got lucky. Now, I cringe when I hear people say they just got lucky because I'm a believer in luck. I believe that luck is a part of being successful, but you make your own luck when it comes up to that. So how many opportunities are you creating for yourself? How many times are you going out and going up to bat. Let me tell you, for example, with businesses that I've started. I've started a bunch of different businesses, especially in my early 20s, and a ton of them failed over and over and over again.

I failed so many times in my life that it's incredible. The same thing goes for when I started to invest in real estate. I had to make hundreds and hundreds of offers before I got one offer accepted. That means my offers prior to that were failing over and over and over again. I wrote a blog post a very long time ago on dollar after dollar called I fail 50 times a month, meaning I get 50 offers rejected every single month. Here's how I deal with it. I went through the entire process of how I deal with it. Maybe I'll bring that article back on the master money newsletter so you guys can check that out. But I went through that process and I was thinking through, I have to fail over and over and over again before I can come successful. And so luck has nothing to do with that. You can create your own luck.

Here's a couple of ways that I was thinking through this on how you create your own luck. Number one is you work towards your financial goals. If you start working through something like the stairway to wealth, for example. You're going to get lucky maybe along the way. Maybe the market has a surge of some sort. Maybe you get a big financial windfall. You get an inheritance or something along those lines. But at the same time, if you just continue to follow the steps in the stairway to wealth, which is our step by step by step system on how to put together your money and get your financials in order, then if you follow that and just take it up step by step by step, that's why it's called the stairway to wealth. Step by step by step. Then what's going to happen here is that

you're going to get to the point in time where all of a sudden you're wealthy. And if you follow those steps and you just become wealthy, it's because you worked towards your financial goals. Number two is you have to start investing in yourself. One of the most valuable things that you can do, especially when you're young, but it doesn't matter what age you are. I'm still doing this every single day is investing in yourself. What do I mean by that? That means you are investing in your financial education. So I just bought a Kindle Paperwhite. I've talked about this in the Master Money newsletter, but I just bought a Kindle Paperwhite. And when I bought this, I've been thinking about buying one forever, just never did it, finally bought it. I always thought I was going to be a physical book

person. But when I bought this Kindle Paperwhite, all of a sudden, I'm starting to read two books per week. And it's all because it's just an easier way and a more efficient way for me personally to read. So I'm investing in my financial education when it comes to reading books. I'm reading two nonfiction books per week where before I was reading one book per week, which is still a lot. I'm not saying you have to read one book a week. What I'm saying is invest your time in your financial education. This year alone, I bought nine or ten different courses. Learning, how to do various things. I've purchased coaching from various individuals so I can talk through certain situations, whether it's investing or other things. I still personally do all of these things.

Why? Because I'm looking to get better and better every single day. One percent better every single day. So investing in yourself is some of the best money that you can spend. Why? Because you have more earning potential going forwards. Number three is to stay prepared. Always be prepared because once something bad happens to you, you're already prepared and it doesn't. doesn't take you out. So if you're always prepared with an emergency fund, something bad happens to you, boom, the money's just there like we just talked about. If you're always prepared with knowledge and the market takes a dip, you understand this is a very normal thing that's going to happen. So you don't sell all of your shares. Instead, you buy more shares because stocks are on sale.

There's so many different instances where staying prepared is one of the most important things. Networking. One of the biggest problems that a lot of people have when they've been poor their entire life is they have no network around them. So one way to solve this problem is to network with people because your network is your net worth. I know that's a cheesy statement. It's a really cheesy statement. But we talked about this on the podcast with Jordan Harbinger. And we just talked about this with Austin Belcac on how important your network is when it

comes to building wealth. If you start to network no matter what industry you're in, the more people you know and the more people you provide value to, not just going out there and trying to just meet people, but you actually provide real value to these people, the more you are going to get. out of life. I cannot stress this enough. I never understood it until I just started doing it because people told me to. You have to start networking and all of a sudden you're going to make a lot more money. I promise you. Just start doing it in your industry. You're interested in real estate investing? Start networking with real estate investors. If you're interested in leveling up your career,

look at the people above you across the board and go invite them to buy a coffee, pick their brain, ask, hey, what can my department do to help your department out to take it to next level? There's so many different ways that you can network, but look to network. The next one is recognize opportunities. You create your own luck when you can recognize opportunities. The financial education is going to help you do that. And when you recognize them, act upon them. There are so many different opportunities out there.

Money is abundant. You just have to take action on it. And then being persistent is the other one. You got to persistently go after stuff. You've got to consistently be looking for things so that you can start to build wealth and look for those opportunities. That's some of the most important things that you can do. So here's how I want you to reframe this.

If somebody achieves something that you want, instead of saying they got lucky, say they achieve something I want to achieve, which proves to me that it's possible if I keep working at it. If somebody else did it, you can do it too. I truly believe that. You can do anything you want in this world as long as you believe that you can do it, and then you set up a system in order to chase after it,

meaning three-year goals, one-year goal, one-month goal, one-week goal, what do I need to be doing every day in order to take the next step to achieve that goal? That is exactly how you get to that point and how you get to that time. Number five, this is a good one. I am too late to start investing to build wealth. So we have a lot of listeners on this podcast who are young professionals.

A majority of our audience is young professionals, usually right around age 20 to age 42. But we also have another large section of this audience who is folks who feel like it's too late and they didn't start investing early enough and they're between age 45 and 65. And for these folks, I want to tell you something right now. It is never too late to start investing. And you're limiting belief that it is too late to start investing. and your limiting belief that it is too late to start investing is going to hurt you in the long run. First of all, life expectancy is way longer now. You have more time for this money to compound.

I know you didn't want to be in this situation, but now you have an understanding of what you need to do. You have so much time for your money to compound. If you're in your 40s, you have a ton of time for money to compound. If you're in your 60s, you still have a ton of time for money to compound. You may not be free as fast as you want to, or you could be if you increase your income. It depends on what your situation is. but at the same time, it is never too late to start investing. Now, there's a couple of things that you can do. You can invest in the market, make sure you use your catch-up contributions to your retirement

accounts, all those different things. Those are very, very important. We talk about those on this podcast a lot. So if you haven't heard those episodes, we have some talking about. If you started investing late, here's what you do. We'll link it up down the show notes below. But outside of that, there's other things that you can do, including investing in real estate.

Maybe you can create a passive income with real estate. Making sure you take Social Security early, because if you start taking Social security early. You can take those dollars and starting to invest those dollars towards your future. There's a lot of other things that you can do here to really learn how to build wealth. So it is never too late to start investing. I don't care how old you are. The key is starting today. Starting today will allow your money to start compounding and working for you. It is much better to invest your dollars for the next 20 years than if you just never did it whatsoever. It is so incredibly important to be consistent in doing this over time so that you can build wealth. It is never too late. It's

going to increase your financial security, reduce your stress, and it's really going to help you have that fulfillment as you're pushing forward as hard as you possibly can starting today. Having that grit, having that perseverance is going to be one of the most powerful tools in your tool belt when you start doing this. Number six, the more money I have, the more successful I am. Now, this is a big one that I've been talking through with a lot of people as of late, because the definition of success for each person is very, very different. Let me give it a couple examples of this. Some people, their definition of success, is to have as much money as you possibly can. This is why billionaires are always in competition to earn more money because they want as much

money as they possibly can, either to make an impact on the world and or just to show off their money. Because once you have a billion dollars, you're done. You don't have to keep going, but they keep going because of something else. So some people are there to show off. Some people want to build wealth for freedom. And you can hear that as the number one answer when we interview other people on this podcast. The number one reason why people build wealth is they want that freedom, that freedom with their time. And this is one of the most powerful things to me. That's my personal definition of success. How do you spend your time? If you spend your time all day long on Zoom meetings, and you absolutely hate Zoom meetings, but you have millions and millions of dollars in the bank,

you're not spending your days or your time how you want. You're living in a prison of your own making. Whereas if you're financially free and you have enough money and you are paying your bills and your and you became financially independent at 35, like Steve Adcock, who just came on this podcast, he is a super happy person. Why? Because he did exactly what he wanted. He saved enough where he could become financially free and then does what he wants all day. And to him, that's his definition of success. And your definition of success can change over time. This is a very powerful thing to understand where very early on, I wanted to be lean fire. I wanted to be fire as early as I possibly could. Then I realized, hey, actually, what I really want is to be fat fire and I want to be work

flexible, doing work I love like this stuff, but also getting to fat fire so I can give away a lot of money. I want to be able to make an impact on people. So these are some of the things that you can think through as you go through this. But money is not the definition of success. You have to figure out what the definition of success is for you and chase after that. Maybe it's impact. Maybe it's leaving as big of an impact as possible. There are so many different ways to think about this, but making sure that you define your definition is how you can have the North Star in your life. Number seven is fear of poverty. No matter how much money I have, it could all disappear. A lot of people who are really wealthy who have come on this podcast have said that is one of their biggest fears when it

comes to money. This is a very normal fear to have, and it's okay if you have this fear. But what you have to do is just remind yourself about what wealth building is all about. It's about creating a hedge of protection around you, around your family so that you can have freedom with your time, energy, and all these other things. And so here's a couple of ways to combat this. Number one is you can put together your financial education. Continually educating yourself on your finance is going to help reduce that stress and anxiety. Number two is to build that safety. Having cash reserves is safety.

I know inflation eats away at it every single year, but at the same time, cash is still safety. You can see Alex Hormosey, for example, who is a person who has over a $100 million dollar company. And what he does is he has a massive, massive pile of cash that he has in place, millions and millions and millions of dollars. And he knows inflation eats away at it every single year. but he has that cash in place because it makes him feel comfortable. Figure out what makes you feel comfortable when it comes to your money and do that.

Insurance. Insurance is going to help you in a lot of situations where you're never going to go bankrupt if you have the proper insurance in place. From disability insurance to life insurance, term life insurance, to home insurance, auto, all these different things. Making sure you have the proper insurance in place is very, very important. Diversification of investments. This is a big one that a lot of people need to understand.

So for the last five or so years, I haven't bought a ton of real estate. I've had a lot of index funds and ETFs, just continuously investing in the market over and over and over again. I realize I probably need diversify even more and buy more real estate to add to that side of the portfolio so that I can diversify more. So now I'm buying it more. Again, so diversification between different asset classes

and different things is going to allow you to diversify your portfolio so that once you have this diversification, if one side doesn't do as well as the other during one given year, for example, then you at least have the other asset class. And the more diversified you are, the more protected you can be. Long-term financial planning is another one. Making sure you have a proper financial plan in place.

We have episodes on that. We're going to do a really big deep dive one coming up pretty soon. And then regularly just reviewing your finances is another way that you can do this. So just reframe this. While you can't control everything in the market, just look at historic performance, you can look at all these different things. While you can't control everything in the market, what you can focus on is the things that you can control.

So you can focus on your personal finances. Those are things that you can control. so that in the future, you can reduce the risk that is in your life. Number eight is entitlement. I deserve to spend money on luxuries no matter my financial situation. Now, you know your boy loves it when you make it rain on the things you love. That is something I absolutely always want you to do is make it rain on the things that you love. But to spend lavishly on the things that you love, you got to get your financial house in order first.

So cut out the things that don't bring you value, spend more money on the things that do bring you value. So to get your financial house in order, you got to cut out those things. that don't bring you value. But what a lot of people do now is no matter how much money they make, they feel like they are entitled to luxury items. There's nothing wrong with luxury items. My wife loves luxury items. But at the same time, making sure that you are also taking care of your financial future and taking care of everything that's going beyond this is going to be a very important thing. So there's a balance there. There's a healthy balance there. And making sure you find that fine line is going to be very, very important. So you need to develop a budget. You need to know

what your needs versus wants are. You just set those financial goals, and you need to understand delayed gratification so that you can get those things that you want and have a rewarding process and still take care of your future. Number nine, who boy, this is a hot topic for me, avoidance, meaning it's rude to talk about money.

Now let me say this up front right now. You need to talk about money more. Most of us need to talk about money more. There's so many different situations and different reasons why. For some reason, over the last hundred years, it became taboo to talk about money. Why is beyond me?

Because when we talk about money, there are so many different benefits that come into play. As a wealth builder, you need to talk about money more. A, you need to talk about money for financial literacy reasons. Your friends, your family,

your children need to understand how to build wealth. We need to spread this message as much as we possibly can, which is why this podcast exists. And so the reason why you have to do that is so that you can spread financial literacy so you can all get rich together.

Imagine if you and all the homies all got rich together, how powerful that would be. Imagine if you and all your family got rich together. You and your children all got rich together. You built wealth together. This is how we all understand how money works. It's not taught in schools. Schools are not going to help us out with this.

Now, different states are passing different laws now, but it is not being passed fast enough. You have to teach your family and people around you all about this. So budgeting, saving, investing, taxes, all these different things. You have to talk about money in your relationship. because this helps a relationship significantly. Money is the number one reason why people get divorced. And we have an entire episode on how to talk about money with your spouse.

So make sure you check out that episode if you have not heard that episode. We need to talk about money when it comes to the workplace. So we have income equality and fair pay where people do not want to talk about money whatsoever in the workplace. Hey, somebody at the same level as you. Maybe you get together, you get to know each other and then you talk about how much money you make. Because imagine if you make $50,000 less than someone in the same, exact position as you, doing the same exact thing as you. That's very valuable information to have and talking about money is going to help you do that. I know it's kind of uncomfortable and weird to

talk about that stuff with a coworker, but at the same time, guess what? You are going to benefit significantly from understanding how much somebody else makes. Talking about money gives you also personal empowerment, understanding how it works, understanding what you can do with this money, how you can protect yourself and your life, and you can get your freedom back. Money buys your freedom back. And so this gives you empowerment with your money, the more that you talk about this. For some reason, it was suppressed for the last hundred years. It should not be suppressed going forward. And then the last one is people just say, well, I'm just bad with money. I hear this all the time from friends, from family members, different people. You don't have to be bad with money. All you have to do is master

your money psychology, which is 90% of the battle, and then mastering, understanding how money works, which is my job, is teaching you how money works. There's a reason why I do this podcast the way that I do it. I'm trying to motivate you at the same time as teaching you different things. There's a reason why it's presented in the way that it is. I want you to be motivated to take the next step because it's so powerful when you do that. You don't have to be bad with money. All you have to do is learn how it works and understand how it works and stay motivated to stay the course. That is the most powerful thing that you can do. You can change your entire life if you do so. Listen, I hope you learned a ton in this episode. If you guys have any questions, make sure to reach out on social

or shoot me an email. I want you to send me a message. Tell me which lies you say most often. What lies are missing from this list? And how have you reframed some of these lies so that you can fight back against some of these lies as well? Think through this and think really hard because we all do this. I do this. Everybody does this. So just think through some of those things so that you can overcome and get one percent better every single day. If you guys enjoy this episode, make sure to share it with a family member or friend. And don't forget to leave that five-star rating and review on your favorite podcast player. Thank you guys so much for doing that. And we want to bring you as much value as we possibly can. So we have some awesome episodes coming up.

I'm really, really excited to share those with you as well. So make sure you are following so you can check out those episodes. I appreciate each and every single one of you. And we will see you on the next episode.