Why Construction Workers Are Always Broke | THE HANDYMAN BUSINESS |

welcome back everybody you're watching the handyman business youtube channel i hope everybody's doing well spring has sprung it's a little chill in the air i've got a pork shoulder a wild hog pork shoulder on the smoker it's been on there three hours it's probably got four or five more hours to go minimum that's some stuff i'm gonna be introducing to my third youtube channel little little uh barbecuing with you know who caught gun hats caught gun t-shirts gun coffee mugs come and take it link for all this will be in the description february i uploaded my last video on this channel been a while and i discussed my strategy to get out of the manual labor industry i went over a timeline of the first 20 years getting your skill set transitioning into being self-employed and where i'm at now is trying to get out of it trying to find a way where i don't have to break my back speaking of which i'm on my fourth day of oral steroids because we they think i have a herniated disc in my lower back i've got this lightning bolt shooting pain down my left leg that it literally puts me to the floor today is my first day of like getting up and and moving around it's just a dull pain that hits me in the calf right now anyways i might talk about my injuries in a different video but it is relevant 45 years old herniated disc pretty much protocol for this line of work this last stage in the timeline i'm not an expert on i'm learning it i wanted to share what i've learned share what i'm doing it is not expert advice and i've kind of stated that from the beginning on this youtube channel i'm just sharing uh what's worked for me what hasn't worked for me and what i'm doing a lot of guys have taken that advice and have reached out and said hey it actually works this this section here this getting out i'm in the middle of it i'm in the starting process i want to be out of manual labor like consistent manual labor in the next two years but it doesn't look like that's going to happen i'll probably be going to at least age 50. current state of the economy has something to do with that we're at eight eight and a half uh inflation what that means is um even your good investments if they're earning eight eight and a half percent a year they're just keeping up with inflation i've had to adjust my lifestyle i'm gonna start working more i gotta be prepared i'm still young 45 and i'm not ready to retire youtube could could die tomorrow and all those customers that i kind of filtered away if you don't know what i'm talking about i've got another youtube channel it's called the handyman we're at 437 000 subscribers i get about a a million to two million views a month and i'm always uploading some project so over the last year or so i've been very selective about the customers i take on that so i can film and take my time and they're okay with me filming and putting it all out there on the internet for me to make money on youtube some of the customers that were like really fast-paced a lot of the property management gigs where i was going into strangers houses things like that kind of stopped working for him but i got to focus on getting back to that if we've learned anything in the last few years is that anything can happen crazy things can happen you could have a thriving successful business and somebody can come chain the doors to your business force you to stay in your house it's craziness what's happened the amount of emphasis that i'm putting on backup plans emergency funds things like that i'm scaling way up because you just don't know what's going to happen i'm going to tell you where my money is uh and you can tell me i know there's a lot of financial gurus out there because they always chime in in the comments and i don't doubt that they know more than me and i'm just taking an educated guess i'm relying on other people's advice i'm going to get out my phone log into my accounts and it's going to show you where i have my money my income it it stays in my business checking account for less than 24 hours before i transfer it out i keep a small balance of around 18 to 20 000 split between a business checking and a business savings account and i keep that there for materials that i have to buy for the projects that i work on we're just going to run down the list and the first one i want to talk about is an sep ira and i used to know how this worked but it is a certain percentage of your salary so i'm an s corporation and i take a salary which is another percent of how much my business brings in my accountant that does both my books and my taxes he does all the math and says okay this is how much you can contribute to your scp ira based on all these percentages this year i'm putting dollars into an sep ira i already have 25 000 into an scp ira what that's going to do is lower your taxable income i've got college savings accounts then i have a traditional ira which i have it set up as an automatic payment of only five hundred dollars a month comes out of my business checking account goes right into my traditional ira now when you make a certain dollar figure that traditional ira that five thousand dollars i believe no longer is a tax deduction i don't know exactly what the the dollar figure is i have taxable investment accounts for all my kids every kid i give a thousand dollars a month to they don't know it they're not old enough to understand all this so every kid gets a thousand bucks transferred automatic like an automatic payment out of my business checking account to their investment account you know i got to take care of the basics which is retirement funds which can have a tax benefit and my kids and then now we're working on my retirement we're going to go see what i have in stocks stocks i've got a few ways to do this i gamble with money on both weeble and robin hood it's high risk investments i'll talk about that in a few minutes also talk about how i trade cryptocurrency in just a few minutes but this stuff here is safer i have it in edward jones i believe it's way more secure than robin hood or weeble weebles owned by china it's kind of crazy that that's how it works but so i bought some gopro stock i've got some starbucks i got walt disney uh and i also have this medtronic plc don't even really know what it is it's called mdt so this is where the bulk of my early retirement funds are at they're called etfs the clean energy etf qcln then i have an ishares uh metals and mining etf it's a p-i-c-k and they have an i-shares s p 500 growth etf i-v-w then a vanic etf semiconductor etf s-m-h vanguard dividend it's a vig uh then a vanguard extended market etf vxf dividend markets etf vea and then once again another vanguard uh emerging markets etf that is vwo so i have some money spread out through there that is what i'm hoping will give me returns to live off of between when my body gives out when i stop doing a lot of manual labor into the time when retirement funds kick in i think that's like 67 years old i can't do this until i'm 67 years old some people are built differently but not me but i've got a mutual fund account that's where i keep liquid cash it's not completely liquid because i can't just take it but it sits in a money market account so that i'm ready to buy whenever an opportunity comes up if the stock market crashes i've got a brand on hand to buy if i were to come across a real estate investment at least dollars to put down on an investment property but it's just sitting there i haven't touched it for eight to ten months that's something that i have learned a lot of really wealthy people have is they have a certain percent of their net worth in liquid cash ready to take advantage of a downturn a lot of people get upset when you know the economy's in in the hole and interest rates are up and this and that the stock market crashed all those wealthy people have a certain amount of money set aside ready to take advantage of the downs so that when things are down they've got money to act that's something that i've never had in the past and they're in hindsight's always 20 20. oh man if i only had a little bit of money saved up back in 2008 when you could buy a mcmansion for 50 bucks and i didn't have 50 bucks back then but having some liquid cash ready to take advantage of a downturn in the real estate market or the stock market hey google what's today's date it's saturday april 16th 2022. april 16th so my my tax payments have to be postmarked on monday man it was a big surprise apparently i made more in 2021 than i did in 2020 and my estimated quarterly payments were nowhere near enough to pay for 2021's income tax so if you're in need of some extra cash i've got a solution today's video is sponsored by north one north one is business banking entirely on your phone well right now north one is giving away five hundred dollars to ten businesses and five thousand dollars to one lucky business so with north one you can easily move money and make payments in a flash that includes ach wire and card payments get access to your cash and load money into your account at locations nationwide built-in budgeting tools to help you plan for business expenses like tax rent payroll you guys are still doing taxes yourself you can tie your account to apps like quickbooks and freshbooks to streamline your accounting you can sync with payment processing apps like stripe and paypal to get all your payments in one place with their app and debit card you'll never have to walk into a bank branch ever again to enter this giveaway you have to open account and put fifty dollars in there you gotta make sure you do it by april 24th at 11 59 pm eastern time the drawing will happen on the 18th and winners will be notified by the 22nd via email link will be in the description go get entered for your chance to win 5 000 bucks i know i could use an extra 5 000 bucks hey i can even use an extra 500 bucks come across these financial youtube channels that say uh make your own coffee bring your own lunch don't go out to to dinner as much and and just whittle away and you'll have an extra 500 at the end of the year now if you are dead dead broke and i've been there dead dead broke where i had no real bank account i got rid of my credit cards and i started doing cash jobs putting those hundred dollar bills stacking them up until they equaled one thousand dollars putting them in an envelope licking it sticking it and closing it up never opening it again until i actually put it in a bank where was i going with that but those little teeny tiny sacrifices when you get to a certain point they're insignificant a 500 a year a thousand dollars a year even two thousand dollars a year is not going to do anything for the age at which you retire it's big purchases putting off buying that new pickup truck which is a hundred thousand dollars or it's you know you're going to be paying six to eight thousand dollars a year in payments and who knows how much in interest so i've adjusted my lifestyle a little bit a year ago stock market was screaming all that money that i put into the stock market and in these etfs and everything in 2020 was just roaring just taking off like crazy and i felt confident i splurged a little bit i'm backing down on my splurges i really only spend money on things that my family can enjoy cutting back on things that are just for me i had mentioned earlier that i have a robin hood and a weeble account where i do my gambling those are my higher risk investments the stuff that i keep in edward jones is a little bit lower risk meaning that they're going to have a lower return their value is going to increase at a lower percentage every year or every decade the lower the risk the slower and smaller the value increase of those assets that you own so you need a longer period of time 10 15 20 years for those lower risks to really increase in value and pay off now the high risk stuff like uh throwing some money at amc so i dabble in i wouldn't say day trading but you know i've bought some tesla i own some twitter apple amazon bitcoin dodge coin dogecoin whatever you want to call it litecoin ethereum ethereum classic i've got some that i'm holding on and hoping that someday it goes to a specific number and then i have another section of cryptocurrency that i am glued to just watching going up and down up and down waiting for these price points that my research says to buy and sell pretty much broke even on the cryptocurrency i've made some bad investments and i've made some good investments the more i get educated on the whole cryptocurrency trading thing i think in the long run i might make a little bit of money now keep in mind there's high risk involved in that there's a lot of people that own a lot of bitcoin that they bought in the you know fifty thousand dollars 55 000 high 40s they all took a loss hopefully that wasn't a lot of rambling and it helped somebody that is young if i had known this when i was in my 20s i would be years and years ahead of where i'm at now i am catching up making up for lost time and unfortunately that is very very common with construction workers they just have never taken the time to get educated on finances financial freedom retirement any of that they just go to work come home go to work come home a lot of them work paycheck to paycheck they're lucky they're a union guy and they have some sort of plan in place but most people don't work for unions that are self-employed or carpenters electricians plumbers something that that is so interesting is you always know when you get a city a city slicker commenting on your videos they say i'm i'm a licensed master painter i'm a master carpenter or i'm a journeyman elevator operator but in most of the country there is no licensing for any of that there's a plumber's license and an electrician's license and so i get a big chuckle out of how these big cities bigger than the city that i live in have scammed you into paying for a license to become a trim carpenter i'm a licensed trim carpenter i'm a licensed hammer mechanic i'm gonna say one more time i'm not an expert i'm learning i'm just sharing what i've learned uh what i'm doing and it could change and i will update you on how things go only talk to people that have money and are actively doing something with their money and get feedback from them a lot of squawkers are people that don't have money they have no plan they have no investments they just watch too many youtube videos and they didn't spend enough time working to make enough money to actually do something with all right that's all for now check the links in the description check the link for today's video sponsor that's also in the description goodbye

Channel: The Handyman Business

Views: 81,227

Keywords: Investing for retirement, early retirement, vanguard, Edward jones, banking, entrepreneur, entrepreneurship, small business, handyman business, stocks, crypto currency

Id: cbAC08_FicM

Length: 16min 15sec (975 seconds)

Published: Tue Apr 19 2022