The Art of Living Within Your Means

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Now we're talking to Denver -- and you -- the author of guerrilla millionaire.

And I guess the easiest question and perhaps the hardest answer -- is the simple stuff.

That I wanna start out with is you talk a lot about living within your financial means what you what does it mean to live within your financial means what what does that mean.

Sure well you know -- it's interesting because a lot of people focus on being a money manager and balancing the checkbook but what they really need to do is focus on being a money strategist.

And the strategist really -- looking for not -- dealing with what is a lot of times people are sort of in a reactive mode when it comes to dealing with their money rather than the planning mode.

Right so they can sort of plan ahead and start looking at what's coming rather than responding they can oftentimes be better prepared we need -- financial advisor or are we -- or we all -- secretly our own financial analysts.

I were -- really dangerous thing to topple financial advisors and of course -- -- I'm gonna hurt some feelings and stirred some controversy here but.

Statistics actually demonstrate that 80% of the financial advisors that are in the market place they are making less money than the people they advised.

So I think -- Yeah and -- and scary technically you know more than your -- Hello my well and you've got more money to -- -- -- -- exactly -- -- but I think I think the truth is as you can never learn enough on your own what you earned -- will be a reflection of what you -- so you should always be on the lookout for what you can learn and and.

There's many some tips about living with an army.

Well I I think the -- the first thing that we really need to look at is if you look at the paycheck to paycheck people -- self made millionaire as the way -- they spend their money is entirely different in fact -- and then their chief issue.

They are -- the figures and different places.

If you look at paycheck to paycheck typically in 97% of the money they spend -- -- things that do not appreciated -- not return value you know this is for average people this is average people to paycheck to -- people so we're saying is when we make a purchase many -- purchase we should evaluate it.

And make sure that.

Not only do we eight needed but it's gonna be worth something -- done well not only that but every purchase you make is an investment you're treating your money for what you value.

I -- coffee in the morning how.

Credit -- to -- quality of life take purchase price let's get you deserve that.

But but the differences -- -- local financial advisors are gonna tell me no doubt go to Starbucks like that -- looked at if you save up all the lattes you can and it's.

It millionaire well I sure there's there's some truth to these kind of principles -- -- but the challenges is that something millionaires what they do differently have a big ticket percentage of their income and actually put it into investments or assets that appreciate -- Yeah they have that extra disposable income I don't think so if you look at this -- there's a lot of athletes celebrities and make millions and and and -- their money yeah.

And they're dead bro cry yes they definitely Warren Buffett who started with his first job making 121000 dollars a year still lives in the same house and -- -- to -- paid 35000 dollars for.

And it was the world's richest man -- one points is not how much money you make it's how you spend it as anybody can can change the game plan immediately by just doing a few things different.

So tell us looking at at that he can say it but it's almost -- Many.

Millionaires are kind just smarter until well I don't know if you I guess the thing it's big enough smarts because we all really yeah it's different not and overnight but -- I don't have common sense we all sort of know what we should do I think it's really matter of self control yes -- just a matter of really getting -- with what you really really want and the problem is most people don't know why they wanted so they never do it okay so when should we -- when and how are things that we do something completely irresponsible and -- with an army -- I will be honest with you I'm not one of these people that says is that you don't shrink the budget shrink the budget I really believe that a person needs to go there and experience life to the fullest.

I think that you really sounds contradictory to -- Well it might.

But that would that the challenges I think it's -- knowing what that balance is like if you're putting money aside and -- -- -- -- getting your money to work for you'll find that it will be very short time later that you have extra money because that money will start working instead of you not just for you but instead of view.

Right so you've -- you've now got multiple streams of passive income and not passive income is what really makes all the difference.

There's -- guidelines that most people should look at in terms of this percent goes to this this percent goes to that or is it different for everybody.

Well you know I've seen a lot of different educators teach that you know 10% goes to hear you know financial abundance in the future 10% should go to.

Education and giving these kind of things I do think it's different for every one way.

But I do think that you need to find a system that works so that you here's the problem is that most people.

Look at the idea of you know when the -- gone it's gone and they don't think pass that thing and the truth this is no such thing as disposable income disposal minstrel in the garbage right yes -- the most interesting kind of kind of think that -- you -- -- got a few bucks left in the account well I can -- -- that.

-- interest this is again we come back that idea you don't wanna be a money manager you want -- -- strategist -- so you've got you know a 10200 dollars left in the account rather than run off quickly by.

You know new pair of shoes or go to the movie -- what everyone if you look at what else you could do that might provide for additional income back and then still with what you got left -- have the fun time.

Yet you know I actually personally I don't budget I.

I -- my finances are fine but I feeling budgeting stresses me out.

So that's it can because I don't want to know that I spend this much money on that -- didn't spend as much money on this I kind -- hoping and it all works out.

Share right there in some overall Smart and that would end here here's what I thought Korea it generally people that spend money -- divided into three categories one to increase the quality of life alleviate stress discussing this us money -- a happy -- anyway Rudolph Ana absolutely the second category might be -- cancel your rate kind of -- for the second -- -- to create and oftentimes if you have ideas of businesses -- in other things still that we create in the losses to contribute to get back to our community and so forth.

We'll -- category that actually provides the most -- come back is to create.

When we actually are you know building on our ideas are going out there and building on our businesses or even educating ourselves to create a better us right we're investing in ourselves it sounds like -- talking about small business -- to -- I think not only -- business but now all kinds of business and even if you're even if you're employed for a company right you still are creating who you -- You know you are technically.

Self employed person because of that company doesn't want you anymore because you're not valuable -- -- you go.

Yet you are a public speaker now -- -- why can't I have and I -- How do you.

What's the -- questioning -- you know what that probably the most common question I have is where -- -- find a good investment.

And that's really two questions if you think about because the where's the geography where -- -- -- -- opportunities.

But the other part of the question is really what are good investments and most people don't know.

-- -- -- the right opportunity came along -- get involved with it really don't know what that looks like yeah.

It's not necessarily a stock a -- -- any T ethic can also be.

An idea that a -- definitely good in fact it really depends on the individual I know a lot of people -- taken an idea of having been.

You know played in any kind of the traditional investments they've really need a lot for themselves because they believe in themselves.

Doug we're -- thank you so much for coming nine very insightful.

I'll have to do some thinking about.

Sounds budgeting anyway guerrilla millionaire is your book thinking yeah area like a fascinating read -- also filmmaker I am indeed.

It'll be prepared to see is Donna -- started writing yeah.

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The Art of Living Within Your Means

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