10 Money Habits That Keep You Poor (STOP SELF SABOTAGE) / Garrett Gunderson

unfortunately the majority of what you've been taught about money and investing is wrong and it's flat-out gonna make you poor from compound interest a big sacred cow to being in it for the long haul to handing your money over to Wall Street or taking risk to try and get a return and trading time for money when it comes to your work no matter how hard you try or how much you work these strategies will make everyone rich but you look at one time I was part of the problem when I started in finance I was in college and I was lectured by this professor on the merits of taking risk if you want to get wealthy now I ended up having another professor that was phenomenal and was actually a fund manager of five billion dollars of unity' bonds before he became professor the southern was just give me charts and showing like aggressive always wins but putting money and more aggressive mutual funds well I bought in Nevada at first it was like hook line and secret and it was in the 90s so it just felt like the market was never gonna stop it was only gonna go up I figured I should put every dollar I possibly could into a 401k and if I could just save and scrimp and sock everything away I can live a much better life one day someday way into the future but nobody told me about downturns or risk management at that time nobody was focused on cash flow was all around accumulation and unfortunately I was in the financial industry I told my family and friends that cash out their bonds their CDs their savings accounts to put money in the market which they knew very little about and I gotta tell you I learned a really difficult very hard lesson but through research infinite curiosity learning from the greatest financial minds of the time I'm gonna show you the top ten ideas that absolutely destroy wealth and if you know how to avoid these you can embrace wealth so let me break this down and at ten simple parts for you number one look this has been a bill of goods that's sold and it's defunct avoidance lack of responsibility thinking someone else is gonna care more about your money than you and someone else is gonna take care of you those that don't pay attention to something yet expect results will be heavily disappointed investing has been twisted to have people believe that they can hand their money over and get rich if there were a magic investment we'd all own it we would all be rich there is no one riding in on some white horse to save you though the only way to have freedom is with responsibility to do well with investing it requires becoming a good investor the best investment though is in yourself yet those that want your money will never tell you this and they would never support it whatsoever why where's their commission how they get a payoff I know that the story is give your money to someone smarter than you and watch it grow hey if they were so smart why would they need your money where's the list in line of all those that are gaining so much wealth from them those that gain wealth develop their abilities their knowledge and their value creation I get it it seems like it makes sense so yeah this person's a a deep expert or not what do I know I'll just hand the money over to them look that expertise has failed over and over again because it changes hands from one fund manager to the next it's you know hamstrung by what their restrictions are and objectives within those funds you know it's it's reporting average versus actual returns it's really a lot of marketing hype and hope that has mislead and let people down if you want to have more wealth in your life it's about creating more value it's about understanding where you can deliver that value because dollars will follow the value that you create those that want passive income without effort will just watch money pass them by this is one of the great lies that are told by those that want to make money on your money and have you take risk while they get returned I mean those that say it takes money to make money whose money does it take it doesn't take their money those people say high risk equals high return are taking no risk they're having you take the risk while they get to return and if they fell well they got the government to bail them out don't follow that path anymore let's get to the second piece here the second piece is this lie that wealth is somehow about being miserly and that if you just cut backing up and you cut enough things out you'll be wealthy look I read The Millionaire Next Door I know there are miserable millionaires that do everything they can to never spend a cent but if there's something to write down if there's something to remember if there's something in print into your life it's that you don't shrink your way to wealth there's only so much you can cut back it's a very limited game there's only so much money that you could save the question is if you sacrifice now are you actually guaranteed a better life in the future if you have a habit for decades of just accumulation and cutting back and living in scarcity we'll be able to flip some switch sometime in the future and finally enjoy your life look I think that our habits start to become who we are and if we have 30 years of sacrifice it's gonna be hard to be an abundant one abundance one day and enjoy life look there's three ways live within your means right one takes discipline the other two take knowledge it takes discipline a budget it sucks it's hard the question is do you prefer to work card forever or actually gain the knowledge which may be temporary hard work but you can set yourself up for ever more efficiency and expansion of the other two factors and they are the key so instead of relying on the philosophy of budgeting just grab my newest book budgeting sucks calm and I know mentioning a book on YouTube how dare I but the problem is it's such a low investment to have a major pay off alright let's go as a third piece here third thing that is going to destroy wealth is to borrow money to consume and getting stuck in materialism this is buying things you don't want to impress people that you don't like consumerism is one of the greatest ways to destroy wealth and stay stuck for the minute from the notion of an American Dream it's all about buying home cars and other things to prove success chase happiness and mostly stay stuck and having to work harder to buy more or maintain what you bought look people typically hate debt unfortunately they lump all loans into the idea of debt what really creates debt is borrowing for things that aren't assets things that don't create more cash flow than they actually cost like going on a trip you can't afford putting it on a credit card and then coming home owing something but now have a thing left to show for it the habit of buying something to make you feel better to feel worthy is absolutely going to decimate wealth to feel important to chase being happy is destructive and will destroy wealth if that comes with consumption it's time to escape consumption and move to profitability and production through value creation the fourth piece here accumulation I know you've heard it before it's the main message that we're taught right good things come to those who wait invest early often and always compound interest is a miracle compound interest is only a miracle that we believe in it Einstein never said it was it a miracle he said compounding numbers yeah it's been misquoted and compounding it just is slow and it's dangerous instead it's about velocity how can you improve the number of times money circulates through cash flow without having to increase what you put in efficiency is it paying less tax paying less interest paying less fees that don't perform with investments or less on insurance costs that don't actually transfer risk this is where there's a lot of money other ways for velocity is to expand your means how do you add more value how do you reach more people how do you get your dog to do more than one thing how can you create cashflow I look in my early life right I bought some real estate that real estate kicked off cash flow I put that back into something called cash flow banking at cash flow banking calm I then got cashed there bought more properties or other investments I even used you know equity to pay off other properties so now I had less loans with one or had it more efficiently like I just kept my money in motion and that money in motion created more wealth because I was my belief was what if I can get three to five percent three to five times rather than ten percent one time that's velocity it's how the economy works and when you can employ personal velocity in your life you can have better returns with less risk well let's talk about returns on factor number five chasing returns with speculation and risk will lead to short-lived gains at best I mean this is even makes sense that high risk equals high return I mean risk just means chance of loss how by increasing my chance of loss and we're gonna have a higher rate of return I'm not going to so people don't actually have risk tolerance it's lost tolerance like risk tolerance is where we go yeah scale one to ten how much risk do you want to take well if you believe risk equals return you're probably gonna answer a ten but if I ask you the day after you just lost everything you're probably gonna punch me in the throat it's a zero you don't have risk tolerance you have lost tolerance so how do you minimize and mitigate risk the professionals do it all the time it's what helps them create more sustainable wealth do not lose money the more you can create stability and security and invest in the things that you do know and invest in yourself so that you can grow and add more income and then get guaranteed returns by saving on interest and saving on taxes and saving on insurance costs that's where you get so much further ahead with less risk some people ask me elegir what about Bitcoin or cryptocurrency what about gold or what about options trading what about aggressive mutual funds there's plenty of narratives out there to separate you from your money am I saying all those are bad no I'm just saying that a lot of people get caught up in the hype instead of in the knowledge Nick Halleck who wrote five day weekend with me it's really good he knows a lot about cryptocurrency I've got other people I've met that really studied gold at a deep level options trading is worthless that's my opinion because it's it's not creating value in the world who cares about you clicking your mouse start thinking about how you add value to the world an aggressive mutual funds are a big way to aggressively separate from your money over promise and under deliver there's plenty of stories of startups working out and people investing early on and pre IPO and then it's a media darling and then people get so excited because a small amount of money turned into a lot but what about the hundreds of thousands the didn't get reported that actually felt that people put their money up there was hard-earned and then they parted with it because it was risk because they didn't understand it because they didn't invest in alignment with their investor DNA for every story of someone making it there's plenty more of people that lost it all in those kinds of investments look if you want to become a better investor if you want to know how to avoid the mistakes the myths and the misinformation if you want to know a way that you could store your money and do a lot better than the savings account without having to lock up your money like a retirement plan and have something in between well go too well factor.com forward slash mega kit where you learn how to keep a lot more control over your cash and prove your cash flow and avoid the myths and misinformation by getting two of my books on me download them right now plus get a cash flow guide wealth factory calm Ford / mega kit all right number six and there's plenty of this right now there's people that are poor and that are running scared right now they divest at times of fear when they have losses and then they jump back in when hysteria ensues right so like hot markets everybody hears about it hears about it they finally get involved at the very end and then it collapses then they're burned and they just stay out of it I'm not gonna get involved and they wait and they wait and they wait until everybody's doing it then they jump in and it's this you know teeter totter of money that's getting transferred to other people's hands and people saying that they lost it look part of the fear isn't looking at what is actually going on or getting angry at anyone that doesn't confirm your existing beliefs or doing something because everyone else is saying that you should or not trusting in your personal ability to add value and understand who you are and what you're capable of this is critical that you learn how to invest in yourself and that you learn how to be the driver of your production and profits not a passenger that has no control if you're always relying on someone else and everyone else you're very susceptible to markets that you can't control situations and scenarios that may not be right for you and look money can be pretty intimidating right money can be something that feels complicated or you know just only a few people understand and there's plenty of myths they would have people believe that money is somehow the root of all evil even though they want more of it or that someone with money did something wrong to get it or that they wouldn't be able to keep their relationships if they had more money you know that somehow you've changed there's also this thing called the poppy seed syndrome or the crabs in a barrel issue poppy seed is if one grows and higher and in Australia let's cut it down and so that's the individuals that rise above and people try to bring them down or the crabs trying to get the barrel and the other crops are pulling them in like maybe it's time to stop being so concerned what other people think and be who you are to be the greatest version of who you are to bring those talents and abilities to solve these problems out there in the world I mean what would success money value or growth mean to you what responsibilities would that take for you in your life to own what you're capable of and look does it really matter what those people say about you maybe it's their own fears and inadequacies that are coming forth and maybe you could be the example of what's possible but the most important thing is just be responsible for your side of the equation for being a value creative for not getting sucked in to the myths of scarcity or less production or being less than who you are now the seventh issue here is people that don't know how to manage a mortgage or student loan and they say once those are handled then life will be different so a lot of times people are trying to pay off a mortgage or student loan at the expense of actually investing in themselves so first we have to understand there's a method versus an objective when it comes to a method of paying off a loan that might be do you pay extra do you have a side account can you earn interest and then pay it all off in one fell swoop is there way to maximize tax deductions or control of your money we're objective might be I just want this paid off most people collapse the two so if your objective is to pay off a loan and you no longer learn the best ways to do that you set yourself up for risk I've had people that have argued with me here on YouTube or like oh well you know if you pay that off then then you nobody can beat you or then you're totally fine I'm like that's fine if you want to pay it off but how do you get there what if you're paying extra to a mortgage and you shorten your mortgage and so now it's a high payment you've got a lot of money trapped in that equity and we have a really high unemployment rate right now and we have a lot of people earning less money right now what if they cannot make that payment they're now at risk of being foreclosed on where if they kept the money on the side or they had it in cash flow banking where it was safe and secure do not go throw that into speculative investments like the stock market I'm just saying keep more control of your money now there might be a faster way to pay it off or a safe there way in order to get there I really believe in liquidity versus tying up capital I believe in making sure to invest in myself and having others invest in themselves so they continue to grow and expand rather than shrink and there's no contingency planning by just paying extra and shortening a loan because you're an equity gel where the bank now has control over that whether they're gonna lend it to you and you either have to sell the home which might be at a time where the economy's not good or real estate takes a hit and for those that want to argue just go back and research 2008 and 2009 I'm here to help I'm not working for a bank I'm not being paid by a bank I don't have a dog in the fight I just want to make sure that you're using the most efficient effective ways of protecting your cash and yourself and part of understanding this is knowing your cost of money your cost of money is your highest long-term rate of return that you can earn or the highest interest rate you pay for use of money so a credit card at 16% might be your cost of money or maybe you have an investment you know you can get 5% that might be your cost money so look at your cost of money before you just pay something down look at the tax ramifications of paying something down and be careful of depression-era thinking and the Great Depression the bank could come and say hey we need you to pay off your home now you might not have the money to pay it off so they foreclose on you there aren't that in the United States no bank can come and say you've been making your payment you've never missed we're gonna foreclose on you that's not how it works anymore they change those rules some people didn't change their emotions but the rules change alright the eighth piece is leverage there's a lot of people that try to borrow money without enough knowledge they go over leverage with real estate they go borrow a bunch of cash to invest in something really speculative I know people have got student loans to buy cryptocurrency I know people that have bought a huge real estate portfolio but all it took was a few tenants not pay their rent on time or an economic change that decimated them see don't go leverage anything other than mental and relationship capital which are part of your investor DNA increase your financial intelligence and your knowledge figure out what investments make sense based upon who you are and what you know what are your core values and drivers and competencies and then you only invest in a focused way and you focus first on cash flow and making money on the by not speculation and waiting for 30 years hoping that it's gonna work out if you don't have the mental capital meaning you don't know what you're investing in why it would work or how it would work don't invest that speculation if you don't have the relationship capital which could be the right attorneys or asset protection or bankers or due diligence team or exit strategies make sure you've got the right team around you to support you so you can avoid some of the missteps and mistakes and minimize the amount of losses so don't go borrow or leverage before you're ready I did a video with Robert Kiyosaki and he had like 300 million dollars he talks about in loans now hopefully his real estate's worth a lot more than 300 million dollars and his assets and his liquidity but people jump all over like that's stupid why would you ever do that well he's got a different mental capital around real estate he has different relationship capital bound people don't want to buy real estate or partner with him on real estate so that could be a great thing for him and a terrible thing for others all right the 9th issue here is lack of liquidity we have to recognize most cash accounts don't pay any Commission's so advisors under you know sell these because they don't get paid on it if you think things will always go great and be great well you're at risk you've got to have contingencies you've got to have an ability to act on opportunity and if you don't have cash around then when the biggest distressed opportunities are out there where you could buy something at a deep discount you can be profitable from day one there could be amazing cash flow because of the situation those without cash those opportunities pass them by those with cash can make money on the by and the last piece here is a lot of people trust in Wall Street if I think about like the top 3 movies about Wall Street it's wolf of Wall Street our wolves like really friendly animals I don't think so Wall Street just that show that we had Gordon Gekko one of the you know sleaziest people and bad guys played by Michael Douglas a boiler room I mean this is all about how people are separated from their money I'm would we trust Wall Street with our kids I mean he'll if I gave him a kid I pray go back and they say ah we lost 8% hopefully it comes back and like 8% ya toes fingers it's fine like they are not trustworthy in any way shape or form we've seen Goldman Sachs continue to pillage absolute economies and nations with no ramifications go watch the big short it's how long do we have to hear this narrative the stock markets only actually gotten 6% for the last 20 years at 84 percent of the gains went to 10% of the investors it's time to take back control of your finances it's time to focus on cash flow it's time to look at economic independence it's time to bet on yourself rather than on other people that don't have your best interest in mind I mean think about the wall street they underwrite IPOs initial public offerings and they always have a positive recommendation why because they're getting paid for that not to be your advocate not to do due diligence I mean when do they not tell you to invest right they're like hey markets up get on board hey the markets Tehran it's on sale hey the markets stable its poised in position to go up at any time look they earn the name wolves so don't let them eat away at your money these are ten points that once you understand them you can avoid the mistakes the majority of what you've been taught about money and investing is wrong and will make you poor from compound interest to being in it for the long haul to handing your money over to Wall Street or taking risk to try to get a rate of return or trading your time for money now that you know the top ways that could destroy your wealth I hope you can make better choices and decisions avoid the landmines and recapture and take control of your financial life it's time to put an end to these myths and mythology in your life now you have the knowledge to transform your thoughts into profits and build the life you love if you're looking for more on this topic check out my video on the five things broke people say but keep them from you learn how the conversation of the wealthy differs from that of the poor and how to change the way you speak so I had to allow you to reach wealth and economic independence I'll see you there

Channel: Garrett Gunderson

Views: 12,867

Keywords: Garrett Gunderson, Wealth Factory, Wealth Building Strategies for Entrepreneurs, Financial Freedom, Financial Independence, Getting to economic Independence, what would the Rockefellers do, business, success, entrepreneurship, Robert Kiyosaki, Matt Clark, Ryan Daniel Moran, Tim Ferriss, Grant Cardone, 10 Money Habits That Keep You Poor (STOP SELF SABOTAGE) / Garrett Gunderson, Money Habits That Keep You Poor, Money Habits, Habits That Keep You Poor

Id: qa150LGf4DY

Length: 19min 59sec (1199 seconds)

Published: Tue Jun 30 2020