COACHING TIP: 8 Roadblocks to Becoming Truly Wealthy in Real Estate

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Transcript:

I went through an exercise in Fiji which game me a ton of clarity around true financial freedom. When I put these numbers together, there are about 6 levels that I'm running up against as far as what my absolute financial freedom is going to look like. I'll describe the process, and then we're going to do it together.

This will be something that's going to be different for everyone, like if your current expenses are different from what you want your future to look like. It's a simple exercise but it's really cool.

Why More People Aren't Wealthy

1. They never clearly define wealth
2. They make it a moving target
3. They define it in ways that make it impossible to achieve
4. Consequently, they don't believe they can ever really achieve it
5. They never make it an absolute must
6. They don't have a realistic plan
7. They fail to follow through on their plan
8. They fail to run their lives like a business

Systematically, I just call it taking money off the table. My business accounts, the two businesses I have get to a certain point. I've got the monthly stuff coming out, so I think I have about $25,000 monthly, $12.5K from each account going into this wealth building account. On top of that, there's just these months that are ridiculous. You've all had the months where you're like, "I cannot believe I have an extra $200,000 this month that I didn't have." Or whatever the number is for you.

When you get that, take it off the table. Take a portion of it off the table and push it into and account. You guys will get there.

I believe that if you're going to be selling homes past a certain date, it should be something you want to do, not something you have to do. This industry has failed in terms of setting real estate professionals up to know what it takes to be able to step away from selling homes. I really want that to be a choice, not a necessity.

Making Money vs. Saving Money

Making money and saving money are really, really different. Everybody talks about the number of sides they do, but nobody's ever talking about how much money did I literally put away this year. "My net worth was $200,000 to start the year, and it's $600,000 at the end of the year." That's the number you want to start to think about. Not, "My business did $2 Million top line this year."

The only point is to become incredibly wealthy by doing this. So you can do a while bunch of things with that money.

Who's done a personal balance sheet, so you know your net worth number, pretty close right now? I think it's super important to know what that number is. For most of you, it's probably not the number you want it to be, but going through and pulling up your Wells Fargo, your investment accounts, those are all the good numbers. The numbers in those accounts, write them down in one column and add them up.

Then it's everything you owe money on - it could be credit cards, auto loans, your mortgage. The mortgage on your house and what your house it worth, you can keep that in or keep it out. I like to look at what the liquid net worth is. Like if shit hit the fan, how much money could I get out within 7 days.

That includes some of your retirement money, so if you have 401K money, there will be a penalty and you can pay taxes, but there will be a portion of that you can just bring liquid very quickly.

You really have to know that number. For some of you in this room, it might be negative. That's a scary thing, right? Some of you don't want to look at that number on a piece of paper, but if you don't face where you're at right now, it's not going to get better. You're just going to ignore it, and you're not going to deal with it.

Just stepping into where you're at is super important in this area.