How to go from $1,800 to Millionaire [Step by Step].

this is how things started for me when i was playing runescape back in sixth grade well back in 2009 i also had a job where i made less than eighteen hundred dollars in one year that's all the money i made things have changed dramatically now here in 2020 and what we're going to do in this video is talk about how to go from making well less than 1800 a year to making substantially more than that and learning how to retire early and we're going to keep the outfit while we do it because well a nostalgia and b why not y'all seem to like it on instagram when i post it so let's get started by the way we're walking up to this house here that i haven't been inside of in about 60 days i just bought it and uh i kind of don't remember what i got into so we'll walk through it while we talk about how to get to the next phase of life and the key's supposed to be under this bucket but oh wait nope there it is this is how you get keys for a house when you buy it in california they put it under a bucket hello realtor we're gonna go through some steps here so step number one you might have heard something like this before we got a twist for this all right and then we're gonna get into the money saving tips and the investing tips so number one think big now wherever you are in life right now you have to ask yourself where do i want to be next year or even in six months usually people are like oh kevin where do you want to be in five years what do you want to be in 10 years that's so far out it doesn't even matter it doesn't even make a difference none of that matters no we got to think where do i want to be in six to about 12 months because that's going to make us get up and get out of bed and get ready to actually do those things so for example you want to be a professional coder do you want to run a business you want to do 3d scans you want to be a licensed lender an architect a real estate agent all these things by the way amazing job especially lending right now there's like so much freaking demand for lending right now consider becoming a lender but anyway i mean you can even get your series 65 invest in investment advisor license in a matter of months like there are endless options for you but by asking ourselves what do we want to do next year we start convincing ourselves that okay great let's get the licensing material now let's start studying the flash cards now to pass the test let's get into a boot camp how can we provide more value to society there's a reason i trademark the slogan providing more because i realize that the more value i can provide to society the more money i make do i want to keep this i mean this is kind of cool i don't know if i want to keep it but it's kind of cool oh wow i could probably build another unit back here always thinking about units oh man this is a nice oh there's a swing i got a swing oh yes awesome step two and then we'll get into some money-saving and investing advice and this sounds like it's about to break off uh oh well i guess we're going down with the ship anyway step number two it's a great idea to always ask yourself what's next that's my rule it's so much a rule that lauren's kind of gotten sick of me saying what's next that in my opinion helps us keep from being disappointed or depressed and look everybody goes through down periods life's a rollercoaster right we go up and down but one of the things that consistently helps me get out of that is always wondering okay what's next like even when you achieve success or you hit failure dwelling on that is really bad once we start thinking to ourselves what's next then we start putting that action plan in especially if we combine that with what are we going to do over the next six to 12 months so really really important always simple rules put it on your wall like just write the word next on your wall or put it on a piece of paper and tape it to the wall this is something that i teach back when you know before the roni rona we used to do uh or i used to do these uh real estate conferences uh where i would educate hey how do we how do we get a deal how do we find below market value real estate which you know we teach in the courses obviously as well but it was fun meeting you all in person and doing it before the pandemic and next is such a key four-letter word to include in your life because it just it keeps you smiling even when things just don't go right you just okay no problem what's next all right number three let's talk about money and well tax savings okay everybody wants to save money everybody wants to pay less money in taxes and so when we think about money we oftentimes think about saving our way to millionaire status and this can be very difficult it takes an insane amount of discipline and insane amount of time it's a very slow way to build wealth uh and and you know even if you get to millionaire over 30 years of trying to save your way there you're really cheating yourself from ever getting there which is really disappointing you know this is this is where we hear so much about the oh let's uh you know we're going to skip on the starbucks or we're going to skip on the fast pass at disneyland and you know we got to be frugal you know earlier this year i spent the most money i've ever spent in my life on a vacation taking my family on a disney cruise and i'm so grateful i did that right before the pandemic i mean i certainly didn't time that but i'm so grateful because looking back i'm like wow that was like a time in my life and look kids are tough two and a half year old and five-year-old it's not really easy to go to vacation with them but uh but it was it was still so amazing and the memories are absolutely beautiful and so i'm a big fan of work hard play hard and see the problem with money education right now is that we're so focused on oh come on five dollars worth of starbucks is worth 15 in the future but i'd rather be asking myself right now screw the the five dollars right now what i'm interested in is what can i do right now that's gonna make me an extra ten thousand dollars uh and and that right there is a key point ask yourself what can you do right now to make an extra ten thousand dollars and if you're saying to yourself well that's easy i'll go sell another house because i'm a real estate agent that's how i made my money that's how i went from making eighteen hundred dollars in a year to making thirty five thousand dollars my first year fifty six 000 is my second year and then up from there to where i was making three four hundred thousand dollars a year just selling houses and so if i were ever asked hey kevin how could you make an extra 10k well i'll go sell a house i'll go do some open houses i'll put the work in and i'll go sell a house or maybe if you're a lender i'll go do some loans or maybe you're a coder oh you work for a week as a coder and you'll probably make 10 grand okay maybe maybe a few weeks but coding pays ridiculously so i guess it depends where in the world you are but the point is when i was working at jamba juice and red robin and jamba juice gave me like a five cent raise and somebody asked me kevin how are you gonna make your next 10 grand i would have said well i'm not gonna make it here at jamba juice or red robin okay well there you go there's your problem you're the wrong place you're not gonna make it there so where can you either get the skills or the license or the certification to make that next 10k and then that's so incredibly what's important so ask yourself where can you make that next 10k it's not about the freaking starbucks it's not about that at all it's about that next 10k that also then brings up the idea of okay well what about you know once you have this idea of you know maybe making money in a different method or a different way how can you actually save money right taxation is such a key to helping us build our wealth and make money and so this is one of the things that i recommend to everybody we talk about this a lot in for example the psychology of money course on stocks in the psychology of money or we even talk about in the real estate investing course all of these linked down below there's a coupon code down there as well but one of the things we talk about is no matter who you are you should be thinking about having a side hustle of some kind the reason you want to have a side hustle here let's do an example so uh let's say let's take some headphones out and let's say i got these used for a hundred dollars these are uh you know the the airpod pros or whatever apple airpods let's say i got them used for 100 and i know it's kind of weird because it's something you put in your ears but let's just say we got them to make math easy you got to be used for 100 bucks okay or you got them new for 100 bucks whatever we're just making an example here so you get some headphones that are 100 bucks well if you pay about 30 in taxes working your job as a police officer fireman or teacher or whatever what happens is when you buy a hundred dollars worth of stuff for yourself because you want the airpod pros you have to actually make about 142 that's because you make 142 dollars you pay 30 in taxes and then you're left with a hundred dollars which you can then use to buy the headphones well enter a side hustle if you have a side hustle that's let's say creating youtube videos or maybe you're really good at cooking or you've got a side hustle doing 3d matter port scans i got a 3d matterport scan this house i do it myself you can do that for other people if somebody were local and i mean there are plenty of people out there that do it i should probably just ask but honestly if somebody's like kevin i'll 3d scan this house for you for 150 bucks i would tell them to go do it and they could get that done in an hour and they'd make 150 bucks an hour boom like that and they could text message me to set up the appointment it'd be that simple right so there's a lot of demand for that out there uh but anyway if you now have the side hustle and you're like well i mean during my matterport scanning it's it's a necessary and ordinary business expense for me to have to have some sort of headphones so that i can answer the phone or respond to text messages and set up other business appointments well then this could be deemed a tax tax write-off essentially a tax deduction against your business income so now all of a sudden you've got one person who just made 142 dollars to spend a hundred dollars and they're left with zero then you've got somebody who has a business a side hustle which again a side hustle could be anything and you just gotta look around and you go okay what do i wanna do what's my side hustle is it doing demo out of house is it installing windows is it doing electrical because i got electrician certification you know is it doing the 3d scans is it doing roof tune-ups for people is it uh you know i don't know installing christmas lights for people making a youtube video talking about doing those things you know whatever it doesn't really matter what it is the point is you got some kind of side hustle you need the headphones now what happens well let's say you make 142 in your business and you buy these 100 headphones because it's a business expense now you get to write off that from your income so you're only paying taxes on forty two dollars that left over forty two dollars so you're paying thirty percent on forty two dollars which just to make math easy let's say it's twelve dollars that means you are left with thirty dollars in your pocket and the apple pro headphones or whatever airpod pros the other dude is left with zero in his pocket both of you made a hundred forty two dollars both of you ended up with the headset you got thirty dollars in your pocket the other guys got zero dollars in his pocket these are just the little things that are going to get you ahead let's keep talking about this next if you have not yet this is almost like a prerequisite before we get into like retirement accounts and investing stocks real estate all that good stuff you have got to got to got to got to build credit and the easiest way to build credit is well you could watch my video on how to build credit a step by step and all about the credit god it becomes really easy to understand how credit works uh very very simple so if you don't know much about credit get into that as soon as you're 18 or if you're already over 18 open a credit card obviously you can start with the apple card if you have uh you know an apple iphone or something like that uh then also or if you don't get like a city double cash card and of course whatever you do pay that thing off every single month carry no balance on your credit card that'll actually help you boost your credit score do not carry a balance that is a myth in fact every time i see balance increase by my score drops like right away so keep that in mind oh gimbal does not like turning in the tesla we're about to turn this thing on autopilot and then we'll talk some more okay perfect so establish credit really really important if you haven't done it yet do it you can vary your lines of credit as well by getting personal line of credit uh you know pay these things off though home equity line of credit that'll help you but right now just focus on establishing credit and pay it off that's it all right let's get on to the next these are really important for building wealth now in this next section we're going to talk about real estate but i want to say something up front lately the market has been so competitive that i've been doing anything possible to find deals before they hit the market this is how i can usually buy properties much more frequently below market value and in order to do this i've partnered with deal machine deal machine lets me drive by a property that i see that has potential whether it's multi-family or single family and maybe i think it's a fixer-upper maybe i think this there's some potential or reason that these owners want to sell i snap a picture of the property i pin the property in their custom app and the app will automatically follow up with them and send them flyers letting them know the property owners whether they live there or not wherever they live that's where they're going to get my flyer they will let them know that i am ready to buy their property pre-market without realtors saving them realtor fees and letting me buy the property substantially below market value check out deal machine and if you use the link down below or go to meetkevin.com deals you'll get a bunch of free postcards that you can mail out as well just to try it now there's no shortage of internet gurus telling you not to buy real estate that buying a house is stupid that you should always only rent and this is by far in my opinion the biggest financial mistake that individuals can make here's exactly why well first of all let me just clarify yeah there are big pitfalls you can make when you buy real estate uh let me give just give you a couple of those really quick a lot of people they try to buy their dream house right away big mistake buy something similar to what you're renting and don't over improve it don't turn it into this chip and joanna gaines hgtv house just so you can show it off it becomes anything you do in construction becomes old after like three weeks you're over it it's a waste of money to over improve on real estate instead you should take advantage of this and this is what we did the fact that you can put one percent down with down payment assistance three percent down three and a half percent down five percent down on real estate and control with three and a half dollars or one dollar or five dollars a hundred dollars worth of real estate so really when we think about it that way it's like wait a minute i can control with ten thousand dollars a hundred thousand dollars plus of real estate which is freaking awesome so here's how that benefit works out let's say and this is a real example lauren and i took our 20 000 that we had when we were both 19 and 20 years old and we put it into a boring s p 500 index fund yeah it's diversified yeah we're investing like the market whoo cool we'll be rich one day well over the last 10 years that money would have tripled we would have turned that twenty thousand dollars into sixty maybe seventy thousand dollars that's great cool that makes us great investors not really it's boring that's not gonna get us anywhere with twenty thousand dollars though we instead decided to buy real estate so we bought our first house we got a house for three hundred to five thousand dollars we financed the fix up we put three and a half percent down this let us take control of basically a house that was worth 450 000 in a 300 000 neighborhood the bank's paying for our fix up for us and all of a sudden today we have a property that's worth somewhere around 675 000 now if we were to sell that property which we're not going to but if we're going to sell that property we'd not only be able to take tax exclusions on that gain which we can't in stocks but we would be able to walk away with somewhere between 250 to 300 000 in cash compare that to the stock market now why obviously it has to do with leverage we took out a big loan to be able to buy that property and that creates a lot of fear like oh my gosh but you're responsible for that but the beautiful thing about owning real estate is real estate you have so many backup plans the biggest backup plan is what's your monthly payment and what you can you rent the property out for if that number is positive considering management fees and vacancy and fix up in between tenants then you're good and even if you had a slight negative you gotta ask yourself even if you were worst case scenario two or three hundred dollars negative per month on a rental property not that you want to be negative but what's that costing you twenty four hundred thirty six hundred dollars a year even if i paid thirty six hundred dollars a year for the last ten years i paid an extra thirty six thousand dollars i'm still way ahead on my real estate now sure you can get debt on stocks but you gotta be careful with debt on stock see debt on stocks margin is dangerous because if the market falls you can get a margin call they can sell your stocks and liquidate your stocks right away to protect the principal that's the danger about taking out debt in stocks whereas debt on real estate they don't care if this market value if this house has in value that i own if that goes down half the bank's not going to call me if this goes down 90 in value the bank's not going to call me the bank doesn't care as long as they get their monthly payment they're happy and guess what if you don't make your monthly payment well i've said this since before the pandemic usually the bank's willing to work with you uh and the pandemic proved that what happened during the pandemic people couldn't pay their monthly housing expense so what happened oh the government instantly stepped in and set up a mortgage forbearance requirement boom 12 months no payments no problem no harm no foul just raise your hand you want mortgage for parents no problem here you go 12 months no payments what do they do for renters nothing people with assets get bailed out first and realizing that and not saying we want to rely on payloads of course but realizing that wow okay so if we start controlling assets and in a safe relatively safe way we can take on 30-year fixed rate debt we can massively multiply the wealth effect that we're able to build and at the same time we take advantage of tax advantages whether that's in real estate or having a side hustle we're expanding the value we can provide to society by either documenting our journey on youtube or by getting a better job by learning to code doing 3d scanning but getting licensed getting certified and something becoming an investment advisor becoming a cpa i mean there are endless jobs and there's just more and more demand for all this heck you can do virtual therapy nowadays you can do anything you don't even have to go into the therapist's office anymore like tony soprano used to have to do right this could all be virtual over face there are endless opportunities to provide value but the point is get into real estate and then take advantage of some of the three awesome things that you can do one the more real estate you control the more real estate appreciation you get to benefit from yeah values can go down but in general as long as you're buying in areas where the population is increasing and the poverty rate second good metric is decreasing that's a good sign that you're in a good area you want to be in an area that's future-proof not too small to where if one school goes bankrupt the whole city's going bankrupt or one oil well goes bankrupt the whole you know economy's going bankrupt now you want to be somewhere where people want to live it doesn't matter what jobs you have out here people want to live here people will always want to live here because it's southern california coastline and here we don't need jobs we just need the weather to stay what it is even though we get fires you know fire season that's something you deal with in california but the point is there are attractors to different areas so keep those in mind so attractors to the area uh poverty population very very important metrics and appreciation obviously stacks with your principal pay down something that you don't get when your tenant when you own real estate every time your bill comes in you're actually building your wealth because you're paying down that debt that you have anyway the second thing that you get to take advantage of when you buy real estate is you can house sack we already know how this is we've heard about this many times before you can rent out a room you can rent out a couch some people airbnb a spare room all this extra income helps you pay for your payment to where your net effective payment is substantially less than what you're renting now this doesn't mean go like buy a house that's much more expensive than you need because that would be bad because you also want to take advantage of the fish behind me you also want to take advantage of bank hacking see bank hacking is when you can buy a one bedroom house or a two bedroom one bath house and then you buy that with five percent down you get a good deal on it you buy it below market value like i teach on this channel in my investing course and what do you do you bank hack after a year maybe even after nine months you start looking for your next house and then you buy like a three bedroom two bath and you buy that with five percent down then you buy a four bedroom two bath and you buy that with five percent down then you buy a four bedroom two and a half bath and then you buy a five bedroom and all of a sudden before you know it five six years go by you've literally bought five or six properties with five percent down because you were buying them as good deals your wealth is exploding and you're getting mortgage insurance knocked off your first properties that you bought because you bought them below market value and you realize that ah mortgage insurance isn't that bad because i'm not paying it for 30 years i'm only paying it for two to three years until i get rid of it because those are the rules that are set up you can apply to get rid of mortgage insurance or you refinance and you keep going and you keep building that wealth okay now you all know that i'm a fan of real estate but let's not just only talk about real estate let's talk about how stocks get involved now okay so what about stocks well here's the thing if you haven't yet obviously get into weeble deposit a hundred dollars with weeble they will give you three free stocks worth up to sixteen hundred dollars and even if you get twenty thirty dollars out of it it's a random lottery hey that's twenty thirty dollars that you got for five minutes worth of work and it's a great stock trading platform especially since you get these like four hour pre-market windows and four-hour post-market windows it's awesome check out weeble link down below okay so here's the thing look swing trading stocks day trading stocks these things can be profitable side hustles if you want to make that your side hustle you have an opportunity to do that as well and then hey maybe you can open up the door to some tax deductions right it's an option but for the vast majority of us the best thing that we can do is we can pick the top 20 30 40 companies that we know and love and we think are going gonna be here for the next five to ten years we take that those that group of companies we throw money into these companies and we pretend as if we can't do anything with that money for the next five to ten years that means don't panic and press the sell button when the market goes down disable the sell button when you have the psychology that you can't sell you will always continue to add to your stock market portfolio much much much better way to do but only do that after you start investing in real estate real estate is very very important get in real estate then build your stock portfolio it's really important to do it in this direction now sometimes it makes sense to put your money in the market while you wait to buy real estate but you have to be careful with this because then you're trying to time the market in the short term i don't really prefer this as much i'd much prefer buy real estate then buy stocks see then what happens is your stock portfolio actually becomes your emergency fund for your real estate if you ever had a really contact big catastrophe or whatever come up you could always sell your stocks and use that as an emergency fund for your real estate so real estate first because you get that max leverage then get into stocks don't use margin because it's bad great so how do we now get involved with retirement accounts where should we start with special tax advantaged accounts let's talk about those all right the next thing you want to do before the sun sets is you want to make sure that if you're younger or generally healthy and you have a high deductible health plan which is usually like 5k plus for the deductible on your health insurance make sure you get what's known as an hsa oh i need an energy potion to get to the beach all right so here's the scoop a health savings account an hsa super super critical because what's gonna happen is you get to deposit money into this account and trade stocks with it i opened this like three years ago i put all my money into tesla let's just say i'm really grateful i did that that was freaking awesome i got lucky on that one but uh here's the thing you open up an hsa which you can do i've got a link down below for lively go to medkevin.com lively l-i-v-e-l-y uh it's this free platform use that link it'll be free it's awesome set this up this lets you contribute somewhere between fifty five hundred to six thousand dollars per year depending on what year we're in into a health savings account health savings account is really awesome because you can put the money in you put like 6k in and then you get a tax write-off for doing that so you let's say you pay 30 in taxes usually you might get 1800 back always check with your cpa i'm not a cpa so i can't give you tax advice right anyway you had eighteen hundred dollars back or it's an 1800 deduction money you're not paying taxes on that's great now this money is sitting into a stock account now you can buy your stocks like a td ameritrade you just go shopping for stocks now in the future if you have medical expenses that come up you could use this money that you got a tax deduction for putting aside to pay for your qualified medical expenses which almost everything is a qualified medical expense you could google qualified medical expenses and see but you have to have an hsa eligible plan to do this could be ppo could be hmo do some shopping around this is really really smart because you're really getting a double tax deduction you're getting it right up for putting your money into the account and then you're able to use the money without paying taxes on the gains on your stocks to pay for medical expenses you would otherwise have to pay out of pocket for that and that would not provide you a tax deduction so you're getting this double benefit you got to fund that account hsa really really important on top of that folks if you get a 401k match maximize the match at your bosses your employment wherever your employment is and of course if you are self-employed look into things like the sep ira or a simple 401k these are great ways for you if you are self-employed to put some retirement money away that way once you get through that real estate step always start with real estate you're actually taking your stock money and you're putting it to use not only in stocks where it is also an emergency fund for you worst case scenario you take it out you pay a little bit of penalties but you've got the money there as an emergency fund notice i never talk about high yield savings because that's the biggest scam that exists get your money invested then you do these things now you're set after you maximize all these retirement benefits and options then put it into a regular you know investing account but not until you do all of these things by the way this entire video was filmed on a new iphone 12 match and this is not how you should test an iphone because when the sun has set and you're standing on the beach on a very windy day you're going to get crappy audio and grainy lighting which is both of what we have here but hey i got my iphone 12 pro max video test done and if you want to see the absolute most ideal environment for this iphone if you're ever going to shoot on an iphone go to the beginning of this video shooting outside on a gimbal and then ideally wear a lapel mic to get that proper quality that's what i teach in my youtube course is you got to fix the problems with the iphone then you will have a phenomenal phone to shoot on don't do what i did here and shoot in the noisy a noisy beach environment after sunset you're gonna get crappy audio and not such great visuals but let's go ahead and finish out the video what do you do once you're done what do you do once you've gone through these steps you've done the real estate you've done the stocks you've done the retirement accounts you've gotten the better job what do you do you repeat you repeat as often as possible until you get to a transition point in your life when you go into payoff mode that is when you're in payoff mode that's when you focus on dividend stocks and paying off your mortgage and paying off your debts until you are in payoff mode do not focus on paying off your mortgage do not focus on paying or buying dividend stocks uh-uh wrong phase of life be focused on those things when you're ready to start getting into that retirement phase until then you focus on growth and building your real estate portfolio by rinse and repeating what we talked about in this video folks if you like this and give it a share consider subscribing folks see in the next video thanks so much and [Music] enjoy

Channel: Meet Kevin

Views: 735,795

Rating: 4.9076171 out of 5

Keywords: millionaire, investing, money, real estate, stocks, hsa, retirement accounts, sep ira, 401k, retirement, investing for retirement, buying stocks, buying real estate, investing in stocks, investing in real estate

Id: WRuvNmLgQvc

Length: 27min 7sec (1627 seconds)

Published: Tue Nov 17 2020