THE CHECKLIST YOU NEED TO TRANSFORM YOUR LIFE AND FINANCES | THE STAIR STEPS TO WEALTH

[Music] this is the millionaires roundtable i'm your host lynne richardson we are creating millionaires one family at a time one day at a time one dollar at a time one dime at a time and that means you [Music] this is the millionaires roundtable i am your host lynn richardson and we are creating millionaires one family at a time one day at a time one dollar at a time and one dime at a time and that means you and i'm so excited because i know many of you you want a game plan you want step one step two step three step four you are ready to take your finances back you are ready to take your power back you are ready to live the financially free life that you deserve so guess what i'm going to talk about all of the stair steps to walk today and i'm going to give you a checklist of things you can do along the way as you transform your life and transform your finances so stair step number one live below your means spend less money there's no way to get to the next level financially by spending more money than you make you know there was a time when i was living check to check let me tell you the truth i was living check the monday you see check to check is a blessing that means you get paid on friday and by the next payday you broke but check the monday is an entirely different game you get paid on friday you kick it on the weekend you pay on your pass-through bills because in your mind your current bills are not due yet you know i'm telling the truth and by monday you're broke and i was living that lifestyle making 20 30 40 50 60 70 80 000 a month it didn't matter how much money i made i always found a way to be broke i'll never forget knowing that i had a 30 000 check coming and spending it before it got there and then something would happen with one of my deals it wouldn't close and the 30 000 check is now a 20 000 a check let me tell you it was crazy you cannot spend more money than you make and become financially free and the bigger they are the harder they fall so here's the deal if you make twenty thousand dollars a year but you spend forty thousand you're living check the monday if you make two hundred thousand dollars a year but you're spending 300 000 you're living check the monday if you make 10 million dollars a year but you spend 20 million you're living check to monday and the more money you make and the more money you spend that is in excess of what you make the more trouble you are in the more problems you have the more depression is associated so let me tell you this more money does not make you happy and i know a lot of people want to test that every time i post that on social media people say well i want to find out no you don't you do not want to have 10 million dollars worth of problems and only have two million dollars worth of solutions you don't want that you'd much rather have twenty thousand dollars worth of problems and only ten thousand dollars worth of solutions than to have ten million dollars worth of problems because the more money you have there are responsibilities attachments and obligations associated with that when i was only making twenty thousand dollars a year all i had was me my husband and our apartment when i was making four or five hundred thousand dollars a year and had no money i had me my husband my children i had moved my mother and grandmother into a house that i couldn't afford i had employees i knew their family i knew their children i had a whole lot of problems okay so when you have more money it does not mean more happiness and more money will never solve a money problem more money makes you more of who you already are so the first stair step spend below your means live below your means live by the 10 10 30 50. there's a worksheet if you're in the 21 days to financial freedom there's a worksheet in my program the first ten percent you tithe the next 10 percent you save the next 30 percent is cash in your pocket so you can avoid a spending addiction a spending addiction is what you have when you go to the grocery store for toothpaste and walk out with 179.47 worth of stuff you don't need talking about it was on sale that was not on sale for you okay it wasn't on sale for you if it ain't free it ain't on sale for you all right and the remaining 50 stays in your checking account for your bills if you have more than enough money do not go out and buy new cars new houses new everything taking everybody everywhere pay off your debt because that is the middleman between you and your wealth when you're paying debt you're paying interest and interest is working for somebody else how do you feel about that you want your money working for somebody else or do you want it working for you your money needs to work for you so pay off your debt if you don't have enough money then you have to subtract anything that's in the way there are too many people who have children in college and you can't afford it and you feel guilty let me tell you something in my household i love education i have degrees and i've gone to some of the best schools in the world so have my daughters but in my household school is free if you get a's you go to school for free if you get seized you go to the free school now my oldest two daughters got a's my youngest was a rebel she said well mom what's the free school the community college up the street that's where you're going she got those a's and she got a scholarship because she knew what she wanted to do so if it's the kid that's in school if it's the private school tuition if it's the house that's too expensive if it's the car that's too expensive whatever it is that is interrupting the mathematical equation that equals wealth get rid of it okay if it doesn't fit get rid of it it doesn't belong in your budget so the first stair step is to spend less money live below your means the next stair step is to get rid of your debt because your money can work harder for you then you can ever work for it so if you have debt then your money is working for somebody else and you simply want to eliminate it how are you going to do that you're going to go by the debt snowball method that's what i believe some people say take the debt with the highest interest rate pay it off first i don't believe that i believe that hard-working people we're already struggling we're trying to get some wins take the lowest debt pay it off so you can get some wins so take your extra money that was in your 50 take all that extra money throw it on that lowest debt once that lowest balance debt is paid off now take all the money you were paying on that debt paid on the next lowest debt when that debt is paid off take all the money from that debt and keep going now if you're part of my entrepreneurs academy at lynnricheson.com when you get your financial assessment i'd go through everything with you if you are not then you can go through it on your own but that's how you want to take care of it the next stair step that you want to deal with is a home-based business everybody needs a home-based business everybody needs multiple streams of income because one stream of income is hazardous to your wealth let me repeat one stream of income is hazardous to your wealth so not only do you need additional streams of income one of those streams needs to be income from a home based business a sole proprietorship or a single member llc that operates like a sole proprietorship why because you get to report the income and the expenses on schedule c of your 1040 tax return and if you have a loss in your home based business or minimally if you are able to write off things like your mobile phone your car when you drive it your business trips and about 400 other tax deductions it's going to decrease your adjusted gross income and put you in a position where you can pay less taxes legally ethically and morally now everything i learned about taxes i learned from sandy bakken sandy black and used to be an irs attorney he used to work for the irs training the irs agents on how to go out and get people he left the irs decades ago and now all he does is train self-employed people like you and i i've been studying his work and his leadership and his coaching for over 12 years and so everything that i tell you i get it straight from the irs when you have a home-based business irs publication 15 page 13 says you can hire your children to work in your home based business you can pay each child up to 12 400 a year you can pay that child the money that's a tax write-off to you and now the money that you pay the child the child can now buy their own things they can buy their own school clothes school supplies uh they can pay their tuition uh video games christmas presents birthday presents and anything else they want to buy with that money that you paid them it's called income shifting and the wealthy have been doing it forever so when you see people like warren buffett and mitt romney and jeff bezos paying less taxes per dollar than people who make less than one thousandth of one percent that they make it's because they understand the tax code and or they've hired people who understand the tax code so when you have a home-based business you have access to tax deductions and my mentor sandy bakken says if you don't have a home-based business your brain dead you know he jokes about it i laugh about it but i think it's kind of true okay so we don't want to be brain dead we want to have a home-based business we want to start to put our gifts to work and put ourselves in a position where we can get our money back so the first three stair steps fall into this category one you must spend less money two you must get more money and three you must get your money back you must do all three things if you want to build wealth you see lots of people have figured out how to spend less money even more people have figured out how to get more money but if you don't learn how to get your money back then you're paying too much in taxes and the more money you make the more the irs will take so getting your money back is essential to building and maintaining long-term wealth now let's talk about stair step number four stair step number four is dealing with your retirement plan and you want to start to plan for retirement now you want to put as much money as you can into your employer provided 401k plan and take advantage of any matching dollars they provide this is the millionaires roundtable i'm your host lynn richardson we'll be right back meet lynn richardson celebrity financial expert you might have seen lynn on good morning america giving financial advice for more than two decades of having leading roles in the banking and real estate sales industries lynn has helped clients face their money issues and achieve their personal professional and financial goals lynn is committed to using her financial expertise to benefit others she's helped thousands of clients get out of debt start home-based businesses and create multiple streams of income to learn more please visit lynnricherton.com where financial dreams meet focus to generate wealth check out tax talk thursday with lynn richardson as she and her special guest give tools and tips to help us better understand the state and federal tax system just give us something that we can use to get those who have never understood the tax system and how it works we have two tax systems in this country and when i say that i always have people say oh sure sir one for rich and one for poor that is not true that's a myth there's one to make you rich and there's one to take your wealth basically learn how to get greater tax returns or learn how your business write-offs can lower your taxes it's more about how much money you keep than it is about how much money you earn right rather earn two million dollars and end up with a million or would you rather earn 1.25 million and keep it all we are creating millionaires one family at a time one day at a time one dollar at a time and one dime at a time and that means you tune in to tax talk thursday on lynn richardson.tv share and subscribe this is the millionaires roundtable i'm your host lynne richardson and we are doing a review for those who want a step-by-step action plan for getting their money to the next level well guess what you've got it right here we're talking about the stair steps to wealth number one spend less money number two pay off your debt number three get a home-based business so you can get access to over 400 tax deductions number four start your retirement planning now put any money that you have available into your employer provided 401k plan take advantage of any matching dollars that's free money if you are self-employed and you do not have an employer-provided 401k plan if you are your sole employee you can start a solo 401k if you're a married couple same thing solo 401k if you have other employees and you're self-employed then you can start a set in scp a self-employed pension plan okay so you want to take advantage of any opportunity to put money away for retirement and you want to start small and you want to be consistent and over time you will see that your funds will outperform the stock market and you will see an increase in value over time your retirement money is not to be used for emergencies your retirement money is not to be used to go on a vacation your retirement money is not to be used to buy a home now i know that the laws allow you to borrow from your 401k to purchase your first home i don't really recommend that if owning a home is a necessity uh perhaps because you're moving to a new state because of a job or something like that and you absolutely must borrow from your 401k then move forward with the transaction but be on a consistent persistent plan to pay your 401k back otherwise i highly recommend that you save at least six months of living expenses before you attempt to purchase a home and leave your 401k out of it the next thing that you want to do on the stair steps to wealth is you want to protect everything that you've built you want proper life insurance if you're self-employed disability insurance a lot of people think that disability insurance is only available if your employer provides it but if you're self-employed and something happens to you you're the bread winner and everything will go down so you don't want to be in a position where let's say if you're a speaker what happens if your voice no longer is operable people get laryngitis people get illnesses they're all kind of things that could impact your voice there are things that could impact your ability to perform mechanic work any kind of labor if you are self-employed and you provide a service or you're responsible for preparing any kind of a product you want disability insurance the other thing that you need in your business if you're self-employed is key man insurance let's say for example you have a mechanic business and you have a star mechanic and that person is responsible for not only providing excellent service but doing so at a minimized cost what happens if that mechanic gets ill and you've got all these customers who now need their cars fixed you're either going to go bankrupt paying them back or you're going to go bankrupt trying to find two or three mechanics to replace your star mechanic so if you have a star employee in your business you need insurance on that person just in case something happens to them and if something happens to them you have an insurance policy to take care of replacing that person because studies show that if a key man is in a business and that's a key man or a key woman but it's called a key man insurance policy studies show that if someone is helping your company perform in excel in order to get someone else to come and do the same job first of all they have to learn they have to learn the company culture they have to understand what happened in the past they can't just pick up and many times it will not only take one person but two or three or possibly even four people say in my company it'll take eight people to replace me i believe it because i feel like an octopus with eight legs okay arms or whatever they have so make sure you get key man insurance the other thing you want to make sure you have is enough life insurance to protect your family or your loved ones or the causes that you care about in the event of your death all death is premature and people do not die in chronological order so don't just assume you're going to be here or that someone else will get the protection that you need so even if you don't wake up tomorrow your legacy can continue and then finally under this area of protection make sure you have an estate plan not just a will a will can be contested children husbands wives people can pop up out of the woodwork and stake a claim to your stuff after you're gone and your heirs will have to deal with probate in order to avoid probate you need to have your single-family residence put into an estate and you need to ensure that your estate plan provides for all of the things that you would want to have protected and covered in the event that you were here to provide that protection and coverage an estate plan is essentially a business plan for your money in your assets after you pass on the next stair step that you want to deal with is owning where you live stair step number six owning where you live if you can pay somebody else's mortgage you can pay your own if you're in a high cost state then you want to assess whether buying real estate is the best option for you and even if you are in a high cost state consider purchasing a second home or even a primary residence someplace else with many people working virtually now you can live anywhere okay so if your job previously required that you go into a building but no longer requires that you show up at an office to perform your tasks then technically you can live anywhere so you want to make a decision about the cost of living and where it's going to be most effective for you to own real estate to own where you live and even potentially own income property so that you can live in that property rent out the other units have the other tenants pay the mortgage and you live rent free in addition to that real estate is an important part of building a passive stream of income in a portfolio of assets that continue to create income for you over time and we'll talk about that in future episodes number seven stair step number seven credit take care of it remember to treat your creditors as you have your debtors treat you remember to pay your bills on time and also remember if you have a zero credit score you can still buy a home and do many other things that people think you can't do finally remember that bankruptcy is not the end of the world it's not the end of the world people recover from bankruptcy as a matter of fact people who file bankruptcy are much better off than people who just deal with bad credit year after year after year after year after decade have you had bad credit for 10 years 15 years has your credit score been less than 700 for more than five years doesn't have to be that way okay so i'm not saying everybody go out and file bankruptcy when i filed bankruptcy i was repentant i was apologetic to myself i didn't feel like i owed anybody anything but i did not want to continue to make those bad mistakes so i was reflective i made the changes and i recovered and you can too stair step number eight my favorite give tithe stop hoarding allow someone else to be the recipient of the blessings and the things that you have been gifted with pour into somebody else's life giving is the freeway to your pathway to success so guess what we're gonna take a few calls because i know that there are many questions out there and let's see what we can do to help a couple folks get to the next level financially thank you for taking my call dr lim my name is sabrina hi so since covit has hit we're down to one income my husband is still working however um it's a little tight but we've made it through we're still able to pay all our bills and everything so i should be going back to work in the next um 60 days okay i've been trying to convince my husband that we should stay on this one income and and keep saving money when i start to work um can you give me some um some tools to use to further convince him that we should um do the best we can on this one income and save the other income and pay off some bills with the new income that comes in thank you wow wow wow covet taught us some things kova definitely came in and swept us away took us by surprise we didn't know what we were doing where we're going but the truth is we've gained some valuable lessons the pandemic while it's certainly disrupted lives some lives have ended unfortunately in my heart my prayers go out to those families who've lost people due to covet but in anything remember this all things work together for good for those who love god and are called according to his purpose and if you have learned how to live on one income when you get that second income stack it we are facing one of the worst recessions in the history of the world so your job is to stack your dollars don't spend one cent and here's what you tell your husband here's what you tell your spouse anybody who's in this situation contact my office go to lynnwriterson.com sign up for a consultation let's look at your income we're gonna show your significant other how much money you'll have after one year after three years after five years you'll be well on your way to that million dollar net worth we're talking about this is the millionaires roundtable i'm your host lynn richardson we are creating millionaires one family at a time one day at a time one dollar at a time and one dime at a time and i'll see you next time [Music] now stay tuned for a sneak peek of wealthy wednesday on lynn richardson dot tv people straight on that let me tell you so for those who don't know the 1010 3050 first of all you can get all the details in my book don't forget to subscribe and share subscribe and share subscribe and share all that stuff but in living check the monday i broke it down because i was making 50 60 70 80 000 a month i was still broke and so i started actually following the rules which are the truth so the first ten percent you tied the next difference that you save yeah thirty percent is cash in your pocket cash for your incidentals like grossly ass hair nails if it doesn't get rid of it and then the remaining 50 stays in your checking account for your bills it is more than enough money that's not a license to go buy a lot of stuff you want to get rid of your debt if you don't have enough money then you have to subtract i was like oh my god this makes so much sense yeah and and i think people can appreciate especially you know i've been with you many times when you've spoken live to you know thousands of women and when they hear that breakdown of 10 10 30 50 and yeah entry each and why it's important um it feels like they just ready to get loose it's like oh my goodness nuclear freight so if you don't put your appointments in your calendar you'll be in one place i'm like oh i forgot about that so we just call it a schedule we keep it clean we keep it easy so i want everybody on this wealthy wednesday um light said it people hear it and they're like oh my god that's freedom this is a freedom series this is about you going to the next level the 10 10 30 50 the first 10 percent you tied the next 10 percent you save 30 cash and it's to help you avoid a spending addiction which is what you have when you go to the grocery store for toothpaste and you walk out with 179.47 for the stuff you don't need we're going to talk about that on another wealthy wednesday share and subscribe [Music] meet lynn richardson author entertainment executive tv personality and celebrity financial coach please say hello to financial expert my girl lynn richardson my girl my buddy finance expert lynn richardson hey everybody why do you need lynn's help she uses her quick wit and humorous presentation style to help others face their issues and achieve their personal and professional goals as well as spiritual harmony so i tell our sisters you go to iraq five hundred dollar purse self do you usually have five hundred dollars twenty dollar first self that's usually how much you got that's the purse that you get off the rollback rack in this current economic crisis due to covet 19 sean diddy combs invited lynn richardson to contribute to his new website our fair share dot com in which lynn explains the paycheck protection plan that assists small businesses in gaining access to u.s government funds over the last 20 years lynn used her financial expertise to create a curriculum of books and online classes to help clients achieve financial freedom lynn teaches clients how to get out of credit card debt shows them how to start a home-based business and to create multiple streams of income lynn richardson is a celebrity financial coach and founder of the 700 credit club lynn wants to talk to you about one of the biggest issues that can separate you from your financial freedom and that's your credit score lynn overcame two bankruptcies and foreclosure but with this plan her score is now over 700 and she's inviting you to join the 700 credit club today here you'll learn to build your credit and have the financial freedom you dreamed of for more information about the 700 credit club please visit lynnrichson.com hi i'm lynne richardson and i'm excited about teaching you how to build multiple streams of income but more importantly i'm excited about teaching you why i'm a financial expert but i think there are some things you need to know about me that you'll never read in a newspaper or a magazine or see anywhere i was born and raised in chicago as a matter of fact my grandmother who passed away almost at the age of 98 she was 75 years old cleaning homes for wealthy people putting me through college i grew up in the projects i knew we weren't rich but i didn't feel poor when i needed money for something i'd say grandma i need money for a field trip she told me to go look in the room on top of the shelf inside the box inside my pocketbook inside the zipper wrapped up in a piece of paper towel it's twenty dollars she'd hide the money like 20 000 times so when i went off to college i didn't know a lot about money what i knew is i needed access to it so i made the mistake that many people make i went into a room multiple credit card distributors were there i didn't get one credit card i decided to get one of each

Channel: Lynn Richardson

Views: 181,050

Rating: 4.9720426 out of 5

Keywords: generational wealth, financial education 2, financial education services, personal finance management, whole life insurance as an investment, 700 club, financial freedom, financial freedom plan, financial freedom movement, FIRE, financial freedom movement youtube, wealth building tools, financial education 2020, credit repair, dave ramsey, dave ramsey baby steps, personal finance dad, personal finance crash course, generational wealth gap, personal finance management tips

Id: aRx1S_7vrC8

Length: 30min 2sec (1802 seconds)

Published: Wed Nov 25 2020