The Secret To Creating Financial Freedom Through Asset Allocation

because I'm telling you right now if you do this you will make more money right you will make more money than you currently are and the fear of losing and winning disappears in your trading and investing you are able to control your emotions in your trading and investing in your financial decisions you will accumulate and attract more money once you do this you will be more strategic you will make people more financially savvy you will be a financial genius and people say how are you doing that this secret is not to have a phenomenal strategy the strategy fits in this and you'll see this and once i've explained this you'll understand how this model fits within everything that i'm going to be teaching you okay so here is the mistake that most people make mistake 1 they don't say money do you know how few people actually save money or love saving worthy okay or they don't say but consistently progressive amount of money right they don't save the money mistake - they pour all that I've seen this many times somebody that bloke blows their accountant this hung on I just blown my 10 grand 20 grand 50 grand account whatever is and they get 50 grand and they pour it all back into their into this then I hope it to make a killin pay the bills but it's not that it's a massive mistake are not Martin my hope from which is once I explain this to you guys start applying this okay three they don't really distribute the profits into other assets okay these three things making any of these three this mistakes will mess up your financial trading than investing and here's why rule number one I want you to understand every single rich person in the world does this right you must save a progressively increasing sum of money and pour into separate asset accounts now in America that every saving is 1% to 2% of their money that's the average now to have that that means that is taken from the people who are saving massive percentage of them when it's people not saving non so to get an average of 1 to 2% you realize most people aren't saving any money at all let alone saying I'm gonna increase the amount of money that I save I mean what Patrick Shirley Shirley Patrick saving monies and the secret to wealth if I had the great strategy don't make learn the money now it's interesting because I heard about a black woman that was in America who was paid no more than $2 70 per hour okay two dollars seventy an hour that's all she saved now I reckon 99% of the people in this room if you have got some form of income you getting paid more than $2 70 an hour and if you get less than that all that then you'll be good add to here I'm gonna tell you she saved a minimum of something like 17 to 20 percent of her money whatever she was paid she saved every single day she saved it she saved it she saved it to saved it and she poured it into different assets bought into US courts from the biggest stock market rises and falls and cutting big term trends in the only day trading she just caught these massive trends she recently donated ten million dollars to charity of her money of her wealth not all enough a poor portion of her wealth power portion proportional of ten million it is not the is not the amount it's their consistent habit of saving which will set you up to become financially free and when you redistribute that money in how I'm going to show you this is how you become financially free so you must save and if you increase the amount that you save you keep increasing this amount you will become financially free quicker and faster what you do this now to really save money and to keep increasing the amount you save it's going to have to be high on your values because most people don't want to save money do you know what most we want they want the money to spend on lifestyle and things like this okay I'm gonna tell you you can have that last I'm going to tell you the easiest and the best way to have that lifestyle however by taking your money and spending it on lifestyle the thing what most people really want rather than having that deferred gratification rather than doing the two marshmallows rather than the one you're stopping yourself in a phenomenal lifestyle and set yourself up for life to be financially free people most people gonna give the one marshmallow now I want that I want the car what those clothes are gonna keep up with the Joneses Oh don't you understand I need that it's essential nice so that is gonna mess you up having that thought now if you have to have a value of saving money more than spending money because people would spend money in the order or allocate it in alignment with what is truly most important to them so if you have a high value on saving you keep taking a proportion of your money and saving it and saving it and saying you could do what that old woman did who took two $2.00 17-hour and make a massive sum of money you just make sure you say the first part of all that I earn is mine to save invest and grow then you know spend the rest but make sure you have in your mind the first part every time you earn any money the first part the minimum they say ten percent right 10 percent 10 percent 10 percent and have a friend a good friend of mine he's always giving gives 10% away arm ours to the church and then he gives another bit of money to like some deacons offering and some fits all over offering the things like this and I say why is it you don't pay yourself that religiously if you want to one of the word and in the exactly the same way as you do it to them as you give it to them okay he says or I said would you ever pay yourself more than you pay the church no no no so let me get this right you will give the church 15% you'll pay yourself less than that and you'll give the rest of them when you'll spend it on bills and consumers all yeah yeah well that's pay myself as a that's not paying yourself that is giving the church money which is nothing rubbing that that's fine but then you're giving it to mr. electric man miss the property man mr. Bookman just mean you want to pay yourself and keep a big proportion of your wealth so that you have money working for you rather than you having what the new work for money okay so in the Bible it says man cannot have two masters you cannot serve God and serve money yeah well I believe that I think that's true I mean kinetically all religious on you right well here's the thing right I think I believe that because as long as you're working for money you're having two masters in some ways so you might as well known to save money and have money working for you then you know you can serve God and have money serving you does that make sense all right so there are three places exactly can it's called paying yourself first right there are three places that you're gonna get income from your salary job some form of self-employment thing that you do all your business now understand some won't go our day trading is a is some sort of self-employment thing okay understand that is your think of that one office I'm not saying it's an easy thing to do take takes people most people many many many many years to be successful that they trading in order to have that as a consistent reliable income source okay but and the whole point of that is to take a portion of that point into investments which I'm going to talk about but there are three places and understand you don't need to be doing that to be rich and what we talk about in this series you could have like that one the $2 seventy but keeps saving a massive sum of it and you redistribute it in the correct way your self-employment thing that could be some form of a doctor that could be some sort of self-employed business some sort of consultancy some form of coaching I don't know what it is for you right so you are the system in a self-employed thing or you could have a business a business system you take up a portion of that money and pay yourself first pay yourself first okay most people have a problem with that but I'm telling that successful and rich people take themselves first pay the taxes second pay the lifestyle third pay the business expenses loss here's what most poor people do they don't have a business so they pay the lifestyle first no they pay the tax man first they pay their they're like their lifestyle second and don't have any money left to pay pay themselves so pay yourself first and I will say this and I read this and I thought that's a brilliant concept when you if you've got a job let's say you're working ten hours a day I'll just say ten do it makes it easy right you're working ten hours a day I'm gonna pay myself ten percent of its money you sit then you go do you know what this this first hour is for me this money in this first hour is for me the other ninety percent or the nine hours you're pay you're working for somebody else do you realize that you're taking that when you're gonna pay from the house and this and this and this the mortgage the bank's but the car but you understand the Builder the the utilities whatever the children's education but the money is going to end up with somebody else with 90% of those things so you might as well go this first hour is my money whatever it is or per portion of that money up to 50% of that money is mine is all mine okay then once you get this money is what you do you need to take a third of it I need to put it into security assets so let's imagine it was three dollars your savings or $30 all right ten dollars goes into here security asset ten dollars goes into cash flow in assets and ten dollars will go into capital gain assets say that again let's imagine you're saving $30 I'm a week $10 will go into here $10 will go into here and $10 will go into here into capital gains assets set up three separate types of bank accounts that separate the money divorcing yourself from it and say that money is now you're gonna have money but now we're going to start having money working for us you're now starting to become a good money manager an excellent money manager okay now watching the security bucket things like your insurance things like physical gold and silver took fiat currency risk you got things like your home right fixed interest payment paying you and income from fixed interest as many different forms of that having cash three to 12 months of living expenses in case something happens okay do you want your that that sense or gives you financial security going you know what I've got these all these things sorted and got money going to a 401 K or in the UK we call it a pension and I thinking Australia call it pension as well but the point is that is that that's what that money is designed to do then you have money in cash flow in assets business asset systems and the reason I've written the word systems is because a business is a system property investing in many ways these things are all businesses they're sort of a business assets okay you're pouring money into business assets property assets paper assets and commodity as systems that give you only things that give you a cash this is not trade in by the way this is not your day trading or anything like that this could be for example let's um an internet business system with a business which gives you a consistent passive cash flow for example or you invest in someone else's business you could invest in some property investment sort of scheme and they you get a percentage of the rental income I've seen how you can invest in hotels and get paid a percentage for people staying in the room you could invest in you could have diagonal spread you could have right that's a system that me said you could own dividend stocks you could put the money in short note and I'm not going to say the hedge funds goes into the other one weekend but it could be you might get you know what I cast hedge funds as a cash flow in paper asset system or you could invest in oil and gas and there's many of those sorts of assets which is why I'm going to have experts coming in on here telling you all about those and there's multiple multiple multiple ones you could be investing in and there's someone that manages gap garages and then what you call them in the US a garage you know your pot your car in it and you're talking about the returns on garages garages it was for normal nor better than owning property so I'll have these experts coming in here telling you about all these different things that is how you become financially free because you are not working for money anymore you are having money work for you only new money you're doing what you want to do with your time but you've got money working for you then you take a purpose other that other dog ten dollars business assets you can write you could start up and invest in some sort stock and then then you exit sorts of strategy on IPOs all those things that you're looking for pure capital gains properties like buying the property giving it up and then flipping it and selling it paper icing is your trading that's your actual trading or commodity assets I'm going to buy this bit of gold at this price and I'm going to sell it at this higher price which is different from having money heads for inflation riches this makes sense do not think I ever buy an ETF in gold is the cinemas come on CSS it's not diversification is not owning 500 stocks diversification is owning different asset color says does that make sense that's what true diversification is once you've done this right you're now going to have money working for you you're setting yourself up because the secret now then is once you get make a profit you redistribute it so for the capital gains right you could have a time line night so you know every month because my trading didn't bit of trading or day trading or I'm doing swing or trend trading I'll do it every year or every three months every six months it's up to you based on the frequency of your trading you take a third of those profits you pour them back into your capital gains a third into the cash flow so you're buying more assets to make you money and a third into your security assets right then you take your cash flow profit you put a third back into the cash flow so you grow more assets a third into security assets and the third into your lifestyle once this thing here your lifestyle it's paying for your bills your expenses your life you are free you will now be spending your whole time just managing money and that's all you do or you could just keep doing your job if you absolutely love it but that is how you become financially free that is the real secret among Secrets that is how you become financially free day trading if you're interested in that is in here paper assets capital gains that make sense everybody if you're doing property flips that goes in here do you know I can tell you this now I have lost a massive sum of money by taking money and then thinking why on earth would I put my money in these other things I can make massive sums of money just doing all my capital gains stuff do you know this is one of the biggest mistakes that most wealthy people make I met somebody and to consult with somebody recently that was worth two hundred million and his I'll just say relative was worth two billion okay do they wanna like it want to say who is and they lost our vast sum of that money do you know why because they had it all in here they did not redistribute the profits I have seen countless stories and I've heard countless brilliant teachers teaching this simple concept I like to slice what I like to serve our differ it by saying daddies for your cash flow that is for your capital gains you could put your money that are people that teach property investment strategies whereby you're leveraging yourself up leveraging yourself up leveraging yourself up but when the economy turned they were screwed right well rather than redistributed the profits to keep themself level and having the diversification across the asset classes that is the secret amongst secrets among secrets of managing your money and becoming financially free and rich and growing wealth and making trading and if you start doing that you stop you realize you have like like ends up like about 10% of your money in your day trading then if you lose some of your money belong so what right you you're not worried about it it will grow now people talking yeah but this is going to take ages to grow practical for do it this way let me tell you is right now I know people in trying to trade for 10 20 years trying to do it the other way and there's no further ahead because they're allocating your money enables you to manage your emotions and as Warren Buffett said do not expect be able to manage money unless you can manage your emotions so this is one of the most powerful things you could possibly do to manage your emotions let me tell you any psychological stuff psychological softer to gives you a massive edge but doing this alone will put you further ahead by managing your money this is one of the true secrets of what which isn't taught Oh

Channel: Patrick Stockhausen

Views: 50,896

Rating: 4.6063271 out of 5

Keywords: saving money, making money, stock trading, tony robbins, The Secret To Creating Financial Freedom Through Asset Allocation, financial freedom through trading, options trading for beginners

Id: XR5hWDtwJEc

Length: 19min 5sec (1145 seconds)

Published: Thu Oct 16 2014