BusinessMiles Beckler

The 8 Most Dangerous Words For Successful Entrepreneurs

welcome welcome just making sure all right we are live welcome miles here miles bechler calm this video is about to reveal the 8 most dangerous words for successful entrepreneurs and even for high income earners talked a lot about personal finance in the last few videos because it’s one thing to make money right and that’s what most of the videos on this channel are all about is making the money it’s a whole nother ballgame to keep money and it actually is more difficult to keep money than it is to make money and once you kind of get a little bit of experience on your side you get a little bit of a few wins under your belt you’ll find that that there’s an almost infinite number of ways to make money but there’s also almost an infinite number of ways to lose money which is unfortunate there’s very few ways to truly keep and grow your money so this video is gonna dive into the 8 most dangerous words for successful entrepreneurs and high-income earners because they’ve already got the make money game figured out and it’s the other side of the equation so I first learned this from Ken McCarthy who is probably one of the pioneers of e-commerce and one of the pioneers have actually just flat-out selling things on the internet in the mid-1990s and he had an old membership program called the system club and in it he had a free report it was a wealth report that he gave I believe me call it like the freedom report or something and this idea is straight out of there and the 8 most dangerous words are what do I do with all of this money actually it’s what do I do with all this money that’s 8 words I put up in there that would be nine words so to keep it on theme what do I do with all this money and that’s one of the biggest danger zones for successful entrepreneurs because what happens is you know you might be coming from a impoverished background you might be coming from a scarcity mindset you might be coming from an upbringing where you’re not used to seeing $30,000 a month $50,000 a month or a hundred thousand dollars per month income and then you pour those levels of income and all of the sudden this thought creeps in what do I do with all of this money which can lead people it’s that whole money’s burning a hole in your pocket and it can lead people to jump into poor make poor decisions and jump into poor investments and ultimately lose large portions of these monies you can get scammed out of money completely or you just buy the wrong thing at the wrong time or even buy the right stock at the wrong time and you can still get a 50 percent 60 percent haircut on what you take so this is kind of the reality and what I want to give you as a few examples and understandings of the ideas he presented in the book and what I’ve taken from that and kind of adapted and molded in my life so number one is just being ok with number 1 pay off all debt that’s associated with liabilities that’s that’s the first and foremost thing that you always want to do is any debt is associate with liability has to go because that’s just sucking money away in the form of interest now is your the home you own and live in yourself a liability or an asset that’s up in the air I do believe that’s a liability but again if you had 3% or a 4% mortgage that’s very very low cost money then you want to build up your emergency funds and it’s ok to have lots of money in bank accounts you see there’s this fear that is perpetuated by Wall Street by the investing industry that in that inflation is going to inflate away your money so just leaving your money in a bank account is a bad idea because the big scary inflation thing is going to make your money worth nothing and I want to ask you if five years ago you put two hundred thousand dollars in a savings account and did nothing with it and you didn’t even earn any interest right over the last five years maybe you have one and a half two percent and you had a hundred thousand dollars in the bank account today did inflation erode away your earnings well what if you put it in the incorrect stock in that time and you got a 65% haircut see that’s the real problem with rushing into investments now there is a time to invest but generally speaking the biggest and most important rule of investing is invest in what you know this is so key because if you’re taking investment ideas and getting investment I have like advice from the talking heads from the individuals on some of these TV shows that are talking about this stock that stock the other stock and you are buying based on random recommendations buying things you don’t fully understand in industries you don’t fully understand from companies you don’t fully understand that sell products you don’t fully understand who are run by leadership teams you don’t fully understand you are setting yourself up to get a massive haircut on your net worth meaning you’re setting yourself up to lose a lot of money so putting it into a bank is better than losing it in the stock market I think that’s a very easy agreeable item so there’s money market accounts right now you can get about to 2.2 2.3 percent from money market accounts there’s also buying Treasury notes you can buy Treasury notes on a four-week cycle and they pay back about that same amount kay so you put in twenty thousand dollars and you get a little bit back on the two point two percent APR broken down on that whatever that that four-week turn is and you can cycle the money that way to make a little bit of return to not lose it then now going deeper on this idea of invest in what you know if you enjoy these videos talking about investing and talking about what to do with your money be sure to give it a thumbs up because I’m only seeing like five of these here and I don’t know if you guys actually like this kind of content so I figured I would ask and if you do hit the thumbs up I’ll see that number go up and that’s how I know you like these types of videos but investing what you know so the first place to look is what did you just do to create this massive amount of income that you have that coming in right oftentimes reinvesting back in our business itself is the absolute best place to go but at some point I understand that you’ll want to diversify now what I’ve done in this world is my wife and I started one brand first and that brand started generating significant cash flow for us then we have now got a separate brand going on okay so I’ve divided into two separate brands and actually I’m building out a third and a fourth brand right now so this is a way of going wide in an industry I understand I understand search engines I understand email list growth I understand paid advertising I understand copywriting so I’m able to double down on all of these skills all of these things that I deeply understand into different niche markets completely different verticals right they’re very very different from each other so if something happens to one of those I still have multiple of within each business we start with one marketing channel okay my wall I started with blogging first I started with YouTube first my other websites are starting with vlogging first and then we’ve reinvested in opening up additional marketing channels just like how I spent hundreds of thousands of dollars in pay-per-click advertising on Facebook to grow my email list okay that’s a different marketing channel on my main business so there’s diversifying traffic sources so there’s diversifying where the customers are coming from within one specific business and then there’s diversifying out the businesses through having multiple different platforms essentially multiple different websites in multiple different verticals or markets now at what point do you want to start to divide your focus that’s a really really key thing for you to think about you need to have a team you need to have systems in place and you need to make sure you have massive momentum on the one before you go add on a second for my wife and I this worked out in about six and a half years of going all-in on one business between the two of us and building a team and getting things really going then we decided to add on a second one so it was after about six and a half years that we really started to add on a second one and now that we’ve got these two working and I’m grown the team to be able to manage these two it took about two and a half years about three years to start to add on that third one okay so that’s that’s been our process the next place you want to look is what ways can you invest money in a tax beneficial manner okay in order to really understand this you need to have a great CPA an accountant a certified public accountant on your team and this CPA should know small businesses they should be a small business owner themselves and they should know the difference in the benefits for you between an LLC and S corporation a C corporation etc because there are ways to structure your entity and to structure your pay for yourself right separating the business and your personal and get your business to essentially match you on your retirement accounts so there’s I believe it’s upwards of eighteen thousand five hundred dollars or so and it goes up just about every year that your business can match you in certain situations now again it requires an accountant to understand how this works why this works and how to implement this and that’s the I’ve received but as a business owner you can your business can match your contribution up to this $18,000 which means you can get an $18,000 business deduction when done correctly under the advisory of an accountant you can get up to an eighteen plus thousand dollar tax deduction from your business to essentially put that money into a retirement account for you so you can set up into Vanguard you could put it into an index fund you can forget about it it might take a haircut it might grow it’s gonna have ups tears it’s gonna have gone years but the goal of index investing is to leave it forget about it for 30 years and the theory is that over the course of 30 years it will go massively up in the correct direction is that a guaranteed truth nothing is guaranteed in this world but there’s a lot of people who truly believe in that kind of process of investing John Bogle the Bogle heads org forum they talk a lot about this investing style well that’s for you or not it doesn’t really matter to me that’s just one of the ways you can take business income that was about to get taxed by the government and put it into a retirement account to essentially grow for your future itself yet another way that you can kind of get a benefit on the tax side by putting money away for your future self and that’s a really powerful idea from there when you want to get into the world of investing you have to really date dig into things you know about so I’ve been studying specific sectors for many years now there’s a there’s there’s one little sector there’s one little part of the world of all of the tens of thousands of different public companies in the world I think they’re something like 3,000 or more public companies in the United States and I found one little sector of them that I’ve been studying non-stop for about seven eight years then I’ve learned everything I can about them how do they work how do the businesses operate where do they get their products from how do they sell their products and I’ve understood their business model I’ve understood the macro-environment that it works around okay what are the different influences what is a change in interest rates due to this business model what does it change in business structure when two businesses merged what does that often mean and I’m understanding it from a stand point that I now get how these businesses work I now understand who some of the big core key CEOs who do great with these businesses are I now understand a few commentators who comment on them and are often correct in their assertions because I’ve been following them for five to seven years and at this point I’ve started a trading account that I’ve put a very small amount of money and I just put fifteen thousand dollars in and my honest expectation is that this is just like tuition for a school the odds are all that money is going into the learning process okay I kind of have this readiness to lose all 15 and then re-up that 15 and after spending you know my college degree cost me fifty thousand dollars that didn’t really teach me how to make any money so I spent $50,000 on a piece of paper so the thought has been well I’m going to allow myself to invest in this area that I’ve been studying for many years and I’m gonna make very small bets no one investment is five percent of my investment total right so five percent of my fifteen thousand is seven hundred and fifty dollars so when I have this brilliant idea I’m like ooh this company it’s right the timings right they just have this report come out the earnings came out they’ve had quarter-over-quarter growth in earnings etc and I believe this is a good one seven hundred fifty dollars is the maximum I allow myself to invest in that because that’s five percent if I always do a maximum of five percent out of my 15 grand that means that I’ll have a guaranteed 20 different investments at minimum right as long as I don’t lose all of my money every time and I’m learning to use stop losses trailing stop losses and I am studying the actual skill of trading and investing I’m reading books like Mark Minerva’s books I’m reading the old books by the guy who started Business Insider’s which is a paid subscription information service he’s got an old book it’s like how to get rich in the stock market it’s got like this totally cheesy and scammy title but it’s really good I’ve been through the market Wizards books several times okay I’ve read probably nine or ten books that go all in on the fundamentals of trading itself the actual how to how to execute a trade how to time it trait how to read a chart how to know when to get in how to know when to get out how to expect the unexpected all of that stuff so I want to put this all into an umbrella for you because coming back to the eight most dangerous words for successful entrepreneurs that are what do I do with all of this money here’s what often happens large amounts of income come in to someone who’s used to making small amounts of income if you’ve made fifty thousand dollars per year and that’s your kind of fiscal threshold right that’s what you’re comfortable with that’s what you think you’re worth and all of a sudden you start making a hundred thousand dollars per month okay so your monthly income is double what your old yearly income is oftentimes people in this situation will see the money go out as fast as it comes in they spend lots of money on liabilities like fancy cars Italian cars big houses that they’ll never be able to resell they built custom houses that no one will actually want LeBron James in the middle of Ohio built a mega mansion that there’s pretty much one person who wants that house which is LeBron James right after building that to sell it he would lose 50% to 80% of what he put into that house now probably doesn’t matter for him but for us if you have some something killer going on you need to make sure and protect every single dollar that’s coming in as best you can because you don’t know when the game is going to be up you don’t know when the algorithm change is gonna happen when Facebook stops allowing you to run your ads when your funnel stops working we don’t know when these things happen so we need to be smart with every single dollar that comes in in this situation okay and then now you have the income coming in and often it goes right back out to the liabilities but then what happens is all these great investment ideas start to pop up the Robin Hood app on your phone you’re gonna why Olo you’re into the wall street that’s on on reddit and you’re just like I’m going all in and I’m gonna droop ‘el this and all of a sudden you start to lose money lose money lose money and what happens is this money-making game that you’ve got going that initiated this new problem situation if you will now you’re reliant on this to make up for all of the losses and for all of the bad decisions financially that you’ve been making versus the money machine keeps spitting out money and you run it through a multiple account system which I taught in one of the previous videos from this and your wealth grows and your account for playing grows and your account for giving grows and everything running through a very specific percentage based system write a zero based budget system is always going to leave you in a financially secure position most people go all-in on making money when it finally happens it goes right out the other way and if you want an extreme example of this go study what happens to most lottery winners you see people who play the lottery often have a scarcity mindset when you put a ton of money into an individual’s bank accounts who has this scarcity mindset scarcity principles are applied and the money will go right back out and something to the tune of 80% or more of lottery winners end up with less money after than when they started which is absolutely crazy and the number of bankruptcies that happen from lottery winners is astounding and when you see that data point you’re gonna understand exactly what we’re talking about here because what happens is they get all of this money in because they won the lottery and they take the one-time payout and boom it’s right there in their account what thought do they think what do I do with all of this money and then they get all these crazy ass ideas and then they go execute on it and their cousins got an idea and they got an idea and this person needs money and that needs money they have no system they didn’t run it through a system to say okay here’s my investing account I’m taking 5% of everything I earn I’m gonna put it into an investing account so I can learn how to invest because I want to manage my money over time that’s the way I’ve approached it is to take of it’s not even 5% for me that goes into the investing account I save and actually put it into other types of investments way more than 5% but the amount that I’m allowing myself to trade with is less than one percent of my income less than one percent okay so I’m literally just testing and fiddling around with pennies but most people go all in on that whole account they think I got this coming in it’s never gonna stop I’ll never run out of it this is the more money than I’ve ever seen in my life sure enough it finds a way because money is attracted to those who are most disciplined with money the world of the markets in the world of Wall Street is designed to separate you from your money it is an incredibly competitive gambling environment that is what it is when you really truly need to go all in and get domain knowledge and that could be real estate for you maybe you decide that you want to start a collection of rental houses and you want to be a landlord as long as you acknowledge that is a full-on second business model that not only requires money but it requires a lot of time as well and research and you have to understand how that game works great commit to it so phase one is get your business going right then you want to pay off your debts you want to run all of the income you’re getting through a multiple account system that will break you off a little bit for fun a little bit for paying off debt a lot of it’s gonna go to long-term savings and then you can break up your long term savings a small percentage of that can go into a trading account if you want most of it can go into your tax advantaged account as I mentioned they the one you get a tax deduction for maybe you leave yourself with twenty percent of all of your investment monies go into rental properties and you save that account up and every time it hits a hundred thousand dollars you go do another deal maybe in your market you can do a deal on fifty grand I don’t know what that is you would need to know what that is and then you let your accounts grow themselves and when you’re when your real estate investing account gets to 50 grand you know that you can go get a rental property you have money for fix-up you have money to hire the property management team and there you go starting a collection of rental houses your big time cash flow comes in it trickles out tax advantaged accounts you’ve got long term savings you got your your your account that is designed to handle emergencies known as the emergency account is full then you’ve got your real estate investing tree it all works because it’s based on a system if you don’t have a system the odds are that money’s gonna find a way out to someone who does have this system it’s gonna go work for them in their system and you’re gonna have a day a moment of reckoning of man I was doing this for a while and then that fell apart now I’m down here and I ain’t got nothing left and I don’t want to see that for you I’ve seen that so many times in the world of internet marketing there’s so many people so many entrepreneurs who flash-in-the-pan victory and when that comes back down to earth which it we’ll at some point in time they were not prepared for that and they had all their money out into some rubbish investments and when they ended up selling them at 60% discount and 30% of what they had they’re getting pennies on the dollar back from what they spent they no longer have a nest egg to live on you see it all the time in professional athletes they’re extremely high income earners Mike Tyson earned a half a billion dollars in prize fighting and prize funds in his time and he declared bankruptcy with over 20 million dollars in debt this happens on every level and we entrepreneurs need to understand this so if you haven’t watched my previous videos definitely do because I’ve taught a system in that that you can use it’s a zero budgeting system and I don’t care if you’re budgeting yourself to get out of debt to climb out of a hole or if you’re making $100,000 a month and you’re budgeting to set yourself up to have a lot of fun now I’m not negating that there’s an account for that if you watch the video but you’re really setting yourself up to make sure that you get to your true financial freedom point where you never actually have to work again in your life at that point you are truly free but it takes discipline and it takes understanding it takes domain knowledge it takes truly knowing what you’re getting into and then really committing to the process of learning if you want to become a real estate investor great it’s gonna take years to really figure that game out if you want to become a trader and an actual investor in Wall Street in stocks great it’s gonna take years to actually figure that out so while you’re growing your income from your business run it through those systems and get started on learning those things also but I would highly recommend that you go all-in on what you’re good at first my wife and I have grown this business to multiple millions of dollars now we have multiple businesses all firing off multiple tens of thousands of dollars per month so if one of those disappears for some crazy reason which is I don’t expect and I don’t think it will happen but if it did for protected we have more than one if one of our traffic sources from under any one of those disappears we’re still good our businesses are still gonna keep going because of how we’ve built it we’ve got structured systems at every level we’ve reinvested in our businesses we’ve invested in great accountants to help us understand this game we’ve invested in ourselves I’m investing in my future self I’m investing in future ski to help my monies make more monies and that’s what I got for you today I appreciate you I thank you guys very much for your time today I’m going to end it at this point so if you enjoyed this video give me a thumbs up if you watch the whole video you’re like dude I didn’t know you were going live you have to subscribe and then you have to hit the bell icon and make sure you’ve got notifications turned on on your phone because if you hit the bell icon when I put up a new video or when I go live it’ll push a notification through the YouTube app to your phone so if you miss the notification for this you haven’t hit the Bell yet so do that give me a thumbs up you’ve enjoyed it I appreciate you I appreciate your time it’s funny I see a cryptocurrency reference and talk about a lot of people buy into the topics they don’t know what they’re buying into and it falls down to nothing and oof a lot of people saw some big haircuts on the drop from $19,000 per Biddy down to $3,000 per Biddy people took mortgages out people put hundreds of people’s who put their life life savings at 19 and wrote it down to three and now they’re excited is at ten because they’re almost back to fifty percent of what they put in don’t be that person if you want to say 1% of 1% and play with it play with it I got exposure to that market it was a tiny tiny percentage and guess what I got my first eath at nine I got my first biddies at six hundred why because I’ve been studying this stuff for a decade right that’s how you need to approach the game to really know when things are aligned right for you I’m gonna leave that at this point I appreciate you thank you I’m gonna keep doing more videos thumbs up if you like these types of videos about finances about wealth about money managing money etc I can do more of these but it doesn’t really look like you guys like these because not how many people have hit thumbs up and that’s totally ok cuz it’s just my Saturday and I enjoy doing this video for you and I look forward to connecting with you on the next video till we meet again my friend be well Cheers

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