8 Ways to QUICKLY Increase Your CASHFLOW / Garrett Gunderson

you really start looking at the rules of the game and those rules are cash flow they're being they're discovering your investor dna they're looking for ways that you can create recurring revenue and that you're watching a video like this which means that you're interested make sure you become committed to one thing that will add more cash to your life today if you do that that's momentum then take that momentum invest it back into yourself add more value and the world starts to become a much better place [Music] i remember discovering something that we call the producer power hour and our definition of producer was to produce more in the world than we consume right so you're adding something you're adding value and then the power hour was what if you started your day investing in yourself you're not investing money you're investing time and there was really three e's that we started with a little exercise right get the body in motion the second e was education where can you kind of develop the most important skills were those skills around money and cash flow like we're talking about here or maybe it's emotional intelligence or maybe it's marketing or maybe it's speaking skills but you're reading something that helps you to put your value out there in the world and then the third thing in it reading or listening or however it might be and the third was enlightenment which was more about a spiritual component a gratitude component or a component for space because there's so much noise in the world i'm just constantly bombarded with things and i'm noisy i get it you know and if you had the space to actually listen to yourself to tune into that intuition right so that could be just quiet time to think that could be meditation that could be prayer but starting your day this way was like putting on an armor of abundance so that you could show up the best version of who you are and you know that you take an hour and i don't care if it's an hour it could be 10 minutes progress over perfection start somewhere right then the rest of the day is transformed where you're bringing a better energy to it where you're living your life with more intention where you're developing the most important part of who you are right and i think purpose there's a lot of activities around finding it but i think that starting your day this way is one of the best ways to discover that purpose because i can't look at someone and tell them what their purpose is right but i think that there's flashes in our life right just moments and if we're too busy doing and not getting any time to understand our being then we miss out on what's available to us so mindful cash management begins with the four types of expenses so there's four types the first one is destructive so anything that leads towards debt anything that's leading towards addiction any of the things that you don't have control over or you're borrowing to consume we want to eliminate those types of expenses so if you look and you go i've been paying for this thing for months and i've never used it and it's something like microsoft word i try to put that on my ipad but it doesn't work without the internet because they want me to pay monthly so i'm like cool i'll just use my computer instead of my ipad really small expense six bucks a month but that would be an example slightly destructive and so many companies are moving to the subscription model which is great and convenient in some ways but sometimes we forget that we've actually subscribed to a service and when i get value from it and we're not getting value from it so just taking an assessment of where where am i investing money right on an ongoing basis that's not necessary so that's a small way to improve cash flow the second is our lifestyle expenses and this is where having that weekly check-in just to say hey where's my money going right what am i paying for and is it got is it giving me utility do i enjoy it like there's certain things that are almost like a must to live but there's other lifestyle expenses that are kind of our choice it's luxuries that we enjoy it's you know the things that we spend our money on that we go hey that has plenty of utility we're just making sure that weekly you're not spending more than what comes in then the third type of expense is a protective expense it's anything from building up your liquidity and savings to having insurances that transfer risk to if you're a business owner setting up the right corporations or education is a huge part of your protective expenses because the more knowledgeable you are the better you can be at managing and mitigating risk right simply the protective expenses are usually something that's a bit negligent for people because nobody wakes up in the morning excited to address these things the fourth one is a productive expense where can you add a dollar in your life and have more than a dollar come out the other side maybe it's investing in your skills and abilities maybe it's investing in marketing maybe it's investing in you know just simple knowledge that you go okay i now know better what to do to monetize who i am and what i'm about and reach more people or more deeply impact the people that i'm reaching but by differentiating the four expenses this isn't about budgeting it's about mindfulness right go down to the bank wherever you're currently banking at and set up a separate account i want you to label this your wealth capture account and all you're gonna do is something in the book the richest man in babylon by george s clawson so make sure you write that down if you haven't ever read that book because it talks about this principle of paying yourself first see a business has an insatiable appetite if you leave money sitting around in it the business always finds a way to spend it your personal life whether you're married or you have you know uh you just have family friends it just seems that there's always a reason or excuse to spend money that sits around dormant inside of an account so you set up this separate account and automatically sweep a certain percentage of money in it just as a habit you put money into that separate wealth capture account first before everything else starts to come in and become a bill or an expense in your life pay yourself first wealth capture account this infrastructure is your way to get ahead and then intentionally and deliberately choose how you're going to allocate that money so if you can pay yourself first so it's just an automation every time you make a deposit in the bank there's a separate account that has an automatic percentage go you don't have to think about it it just sweeps over there like cool now everything else that's left over is mine to spend how i want um and so this is how we start to manage cash flow i always look at credit cards as kind of the easiest thing here yeah because when i was moving years ago i called to cancel my cable which included like internet and we actually still had a landline because my wife really believes that the kids are going to need a landline one day in an emergency so great so we had all these kind of things it was like 170 some bucks a month so i called to cancel but they moved me to the retention department and by the end of the call i'd save 70 a month even though i was still going to cancel it because it wasn't that i was overpaying in my mind it was just simply that i was moving and was going to get a different service in a different location so that really kind of put a light bulb on for me and i was like i wonder what it would be like doing this with credit cards so i just called the credit card company and the first person i called really has no authority no power to do anything so i just said hey do you have any deals do you have any departments i could talk to about balance transfers but the thing that really gets immense if you say you want to cancel right then they move you to retention and they immediately think you can't afford it or that there's someone out there with a better deal and so they're very easily going to move that interest rate down because there's no collateral against a credit card typically so that's probably the lowest hanging fruit x absolutely because they're you know a lot of them we when we first get our credit cards are 20 24 somewhere in that range there's a lot of room in there and so if they think somebody's offering you a lower interest rate better deal they're going to move very quickly any tips on what you would say i usually like to call them same thing right i've got these offers that are coming to me in the mail looks like a much better offer but since for simplicity stake i'd like to stay with you guys if you can match or beat their offer that's a great one yeah and that one seems to work almost every single time you've got to get on the phone with the right person yeah the first person is not the first person that answers yeah they're a telemarketer they're just nobody gives them their authority right the authority is going to come from the second department second person you talk to for sure right you want to get in that retention exactly right in all these types of expenses i think it's important to really look at where can you find money that's rightfully yours right and that's the four eyes yep the irs are you tipping the government let's stop doing that absolutely interest are you overpaying on your interest because you haven't refinanced or restructured your loans or renegotiate your interest rates investments are there any underperforming investments that could cash out and pay off loans are there any investments that have hidden fees or commissions and if you can get a little bit of financial detective work to figure that out you can keep more your money and is there a way to protect the downside and the fourth eye is insurance are there duplicate coverages are there improper structure can you raise deductibles so that you just cover the basic things on your own and then have the insurance kick in for the more catastrophic type of events first see if you can renegotiate can you get your existing interest rates lower right streamline refinance which isn't a full refinance or negotiating a better interest rate with an existing loan because you have comparative or competitive deals that could be very useful and then just refinancing a home could be good refinancing a car or looking at any type of loan where you're paying a lower interest rate with the new loan versus the old loan so that with the same payment you're either shaving that time off or you freed up cash to build up your savings your liquidity invest it back into yourself we're really looking at how can this personal finance be personal to you giving you enough information that you can be informed and make the right choices and decisions absolutely and if if they've got that discipline if you have the discipline to really do the refinance free up the cash flow and then use that cash flow for savings and growth that can be a very very valuable tool we've used that with great success for many many people and then you're just looking at can i eliminate any destructive expenses are there any lifestyle expenses that need to be managed and maybe i can wait on because they're not that important and they're taking away from where i want to go protective expenses i need to address that so that my money's not just wiped out with one financial surprise and then productive expenses where can you really increase those right you want to get rich in three years you can't have loans beyond car loans or mortgages if you have consumer-based debt that's eating away at your cash flow that's feeling like a weight on your back and it's occupying your mind three years is going to be highly unlikely basically risk isn't in the investment it's in you the investor so what kind of investments are you going to do some people are good at real estate others suck some people are good at the stock market not many most people suck at it right some people are good at tax liens others aren't like some people are good at acquiring businesses and understand the fundamentals others aren't so if you don't have an answer the first place you invest a portion of this money is getting educated so yes part of that is finding the right person that you could learn from then secondarily which i think she understood is building a network of people and professionals we're actually doing that at wealth factory right now we're interviewing all these business acquisition specialists these business exit specialists that this is what they've done for their career to build a network just for this very thing and that's why wealthfactory.com forward slash scale so that's my first answer is figure out what kind of investor you're going to be and focus instead of diversify where are you going to put your time and attention so that you can create risk management and and strategies to understand what's really happening so when someone's starting out and they're trying to figure out their investor dna let's say they've never had an investment they never have owned a business they've never put money in the stock market how do you even know figure out what you're good at you know without spending a ton of money or losing time yeah well what's nice is there's a lot of like inexpensive courses right now there's books there's audio books like you could just see like do you have a natural inclination towards these types of things like i've been doing a lot of webinars and podcasts i just did one for nate lin's group which they're all about business acquisition for digital businesses right like e-commerce type businesses i've spoken at amazing.com before which is all started out as how to build a business on amazon and people are you know starting a business with less than five thousand dollars and becoming extraordinarily profitable so there's we're in a world where this is more available than ever and a lot of it has to do with what are you reading about some people are great with technology others are great with finance some people are great with you know some crazy nuanced thing that they understand something around health and what that's going to mean so it's about really figuring that that arena out and then understanding how you can invest in that particular area you can't dream when you're in survival it's a selfish state of mind it repels wealth reductionist thinking removes possibility forget getting rich in three years what can be cut out reduced eliminate or done less expensively doesn't take into consideration about how you can impact the people you serve the most by investing in yourself and bringing out the best there is to offer from there you want to look and say what investments make sense based upon who you are are you a good real estate guy because you know how to fix things up and flip them are you good with tax liens because that happens to be something you pay attention to every day are you good at hard money lending are you good at um the stock market are you good at businesses are you good at like i know people like i know people that actually made 60 000 a year because they loved disneyland and they created a website on how to maximize your experience i was like i don't even know how the hell they turned that passion into a dollar but they did you know like it's better to invest in things you know and if you don't you stay in cash and here's the thing rookie investors always stay invested pros sit in cash and they deliberately invest they automatically save and deliberately invest when the opportunities are right there are five levers to becoming economically independent that's to recover cash that's to engineer wealth that's to accelerate investment income that's to scale revenue and then make it count we'll get more into what those five things are but that methodology and framework helps to recover cash being the first of those things it's about the four i's finding if you've overpaid the irs maximizing your deductions or taking on reclassification so you pay us pay less tax on the dollars you earn the second of the four eyes is interest these are the three r's this is about restructuring loans this is about reallocating resources if you have underperforming assets that can pay off higher interest rate loans or it's about renegotiating to better interest rates so restructure reallocation and renegotiation is on the second eye of interest the third eye is investments it's about turning them into cash flow it's about protecting the downside and most importantly it's about removing unnecessary fees that don't add to performance and the fourth eye is insurance it's about eliminating inefficiency or duplicate costs by making sure you have the right design so that's the first of the five levers the second lever is to engineer wealth engineering wealth is about knowing your monthly expenses and creating cash flow from your assets to cover those basic expenses now the first way you can do that is in the third level it's to accelerate investment income where do you already have assets that you could turn into cash flow turn any accumulation assets into producing monthly cash flow because the game is about cash flow first cash flow second and cash flow third now how do you scale your revenue this is about increasing your earnings by adding more value making a greater impact and being more strategic with your time that's the fourth lever so the first is recover cash the second is to engineer wealth to figure out what your monthly number is and create assets to cover those basic expenses the third is to accelerate investment income which is make everything you have turn into cash flow and recurring revenue to cover your basic expenses then scaling your revenue that's investing back in yourself that's growing your business that's about the things that you can eliminate from your life that don't add enough value so you can do more of the things that add the most value therefore creating a bigger impact therefore making more money and then the fifth lever is to make it count see you are your greatest asset not a stock or a bond or piece of real estate so what are you doing to relax rejuvenate and have some recreation so that when you show back up to do something you're the best version of who you are and it's about determining what success means to you so you can learn to say no to things that aren't right for you and discern opportunities from distractions distractions lead us in the wrong direction but a lot of people enthusiastically run that way see i believe you can't shrink your way to wealth and ultimately the problems we face in the world can be solved with the people and resources we already have if they only knew about the value equations you get your mental capital times your relationship capital equals all your financial capital okay so if you have ignorance or misunderstanding or myths or misinformation or any of that in your mental capital hard work won't compensate you could be enthusiastically running in the wrong direction right doing absolutely the wrong things to help you out relationship capital if you have the wrong relationships in your life that's going to lead to debt if you're not managing them you're not spending time with the right and what i find is the people that are most dramatic typically find the most time in someone's life but the people who are most dramatic aren't always the most productive actually they're usually counterproductive so the bridge between these two things is business business is the bridge of how you take your mental capital and you add value to people's lives the more value you add the more money that comes as a byproduct of that so money is the receipt dollars follow value so the big question here is how do you deliver more value well if you have less concern and worry about finances because you're economically independent you'll be able to create more value if you can reinvest back into your business and yourself without the fear of is this going to take away any of the stability in my family life or finances when that's gone you can swing for the fences your vision can absolutely change most people's vision is absolutely contained within what they think they have the financial means to do it comes down to the impact equation this is about how many people can you reach number one and number two how deeply can you impact those people which is absolutely critical if you want to get rich in three years the more people you can reach the more money you're going to be able to make so if we combine the impact equation of reach and depth with the value equation it's going to unlock your potential by recognizing the best ways you can serve others it looks like this our mental capital times our relationship capital determines our financial capital so three years or less comes down to your mental capital what are your ideas what knowledge do you have what wisdom strategies and insights where do you have something unique that can offer massive value to the world see those that say it isn't um what you know it's who you know well if you don't know anything nobody wants to hang out with you it's one of the most precious forms of capital is your mental capital have you got a way to tap into that and to bring that to people but the one where the most potential exists the most underutilized untapped resource is relationship capital people are the only true assets you are your greatest asset not that stock bond or piece of real estate so relationship capital comes in the form of networks organizations customers friends family and the bridge between your mental capital and relationship capital is business and the currency is value creation the more mental capital you have the less mistakes the more value you add and if you apply your mental capital to the relationships out there in the world you'll have more financial capital you can be extraordinarily intelligent and broke the way that can happen is if you don't share it with people outside of your family for example because family members usually don't write checks right other people do so the more people you're reaching with that intelligence which that's where i think about leverage like i reach more people when i wrote books rather than when i just you know met with people at their kitchen table 15 20 years ago right i started creating video series why because i want to be able to impact more people even while i was sleeping and making sure that i could get that out to people that was a way to take this mental capital because i just have like this photographic memory and finance but if someone talk technology with me i am very stupid in technology like i don't like every now and again i can impress my wife because when she's not looking i can restart a computer and all of a sudden it works i'm like i got it fixed for you you know that's about the extent of my technology expertise but when it comes to my financial expertise i can read an article from 10 years ago and still remember it today i know how to pick it apart so i have this mental capital that most people don't want to pay attention to that every single day and it's a big universe so how can we simplify it how can we narrow it down how do we reach more people and how do we impact them more deeply that's this model of the value equation so you're either one idea or one relationship away from the next level of prosperity one idea or one relationship away from the next level of prosperity and the key is like i found some of the quick ways to build relationships like when you came here you wrote a check to be here and all of a sudden you met a bunch of people and you had connections directly to people some people they don't want to do that like sometimes that's the fastest route to finding the right individuals right just write a check and then all of a sudden you have access to relationship capital or mental capital you're only one idea or one relationship away from the next level of prosperity so how do you develop expose and create more mental capital how do you deliver more value serve more people and and really solve the bigger problems if you have a clear path to do that you can get rich in three years or less if you don't have major deterrents and obstacles like massive consumer debt so if you have less than desired results let's begin by looking at your relationships who are your friends i consider friends the ones that want me to succeed they're the ones willing to support and the people i can count on i want to spend as much time as them as possible say yes to as many individuals and invitations that are friends right and when they bring that invitation to your life on the other hand there are those i'm friendly with those i don't share the same values with those that are consistently creating drama or that we get joy from seeing me suffer i politely say no to any and all of their invitations remain cordial and never ever invite them into my life another piece is you have to have at least one catalyst in your life a catalyst is an amplifier relationship that believes in you connects you to people and opportunity that make sure that they know who you are maybe even more so than you do and see that potential in you and they want to let the rest of the world know that the number one thing you can do is learn how to create more value and add more value to the world that's what's going to bring about more cash flow and then you just got to make sure you learn how to create that cash flow how to make that money some people give their talents away for far too long for free and there's the book give and take by adam grant that says those people that give too much without getting anything in return end up at the bottom you got to be the givers that also make sure that you're getting paid for what you're giving and if you can really discover that i think that there's an extraordinary world out there and we've got plenty of problems still plenty of problems and the bigger the problem that gets solved the bigger the payoff so where can you be part of being a problem solver rather than just pointing out problems are going to be part of the solution rather than just complaining what i look at is the cycle of creation the cycle of creation is we begin with an idea right and this idea is hey maybe i should buy a business great to make that a concept it really takes investing and understanding what type of business knowing that down and then really figuring out you know someone that's already in that industry where you could go learn from them and work for them or anything that way and then you can start building your framework of like what's your process for that purchasing and how do you make sure that it's going to be profitable and you know those numbers that we're talking about and then what can you do to add more value to that existing business that it's not seeing right now because that business owner was tired or struggling or just ready to retire and hadn't really put any energy into

Channel: Garrett Gunderson

Views: 14,298

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, 8 Ways to QUICKLY Increase Your CASHFLOW / Garrett Gunderson, 8 Ways to QUICKLY Increase Your CASHFLOW, QUICKLY Increase Your CASHFLOW, CASHFLOW

Id: pUs3MBKPHqw

Length: 22min 30sec (1350 seconds)

Published: Fri Sep 18 2020