Books on Money & Finance that have

Changed my Life
The Millionaire Booklet: https://amzn.to/2V8zgzP

The Richest Man in Babylon: https://amzn.to/3aOLynz

Principles: https://amzn.to/2xTPrZY

Rich Dad Poor Dad: https://amzn.to/2XcCBk2

The Thank You Economy: https://amzn.to/3aPuQEO

Common Sense on Mutual Funds: https://amzn.to/2Xeh62v

The Intelligent Investor: https://amzn.to/3bVRPOz

Assets vs. Liabilities

• Asset = anything that puts money in your pocket

• Liability = anything that takes money out of your pocket
• Simple. Is this putting money in my pocket? Or taking money out of my pocket?
• Start with basic knowledge & master it…b/c often people mistake liabilities for assets
• Poor – don’t know the difference between assets & liabilities (or even that
the concept exists)
• Middle Class – tends to buy liabilities they believe are assets
• Rich – Buy assets (or first acquire assets that will pay for their liabilities)
• We will NOT be covering more advanced topics like leveraging debt/liabilities in this
Course
• DON’T put liabilities on credit (worst thing you could do)
• If you use credit – make sure it’s to aid your credit score & to purchase
essential items (ex. groceries)…or even to purchase assets
 • Always be striving for positive cashflow
• Cashflow is the HOLY GRAIL of personal finance
• Positive Cashflow = More money coming in
Cashflow 101 every month than going out.
• Assets/Income > Liabilities
• Work to slowly improve cashflow
 Asset or Liability?

Is this putting House Car Stock Rental Book Course Cell Phone
money in my Property
pocket? Or
taking money
out of my
pocket?
Simple concept.
Understand it.
Master it. Then
understand certain
aspect can be
object
Understanding your Expenses & Income
Track your income

Track your expenses

“What you track you can improve”

Just seeing (every month) what’s coming in, what’s going out, & FROM WHERE…will make you realize A LOT.

• You can’t hide from it when it’s staring you in the face.
• Most people think they know where their money is going to…but until you actually track it & see it, trust me you don’t.

For most people…

• Mint (free)
• Personal capital (free)
• Quickbooks (paid service, but also can help with taxes & automatic filing)

For entrepreneurs – Quickbooks Selfemployed

Keeping up with the Joneses

• Be willing to sacrifice immediate comfort for future wealth

• Keep in mind that…
• Keep up with the Joneses is a losers game…quite literally
• You’ll never be able to win – someone else will always have more
than you & that’s a slippery slop that leads to constantly increasing
expenses & certain unhappiness
• What other people have on the outside is not (always) what it seems
• Focus on your personal finances, be smart with your
money/cashflow, & the rest will take care of itself.
• Discipline now = future freedom
Pay Yourself First

• The Richest Man in Babylon: https://amzn.to/3aOLynz

• Rich Dad Poor Dad: https://amzn.to/2XcCBk2
• The Millionaire Booklet: https://amzn.to/2V8zgzP

• Most people tend to spend what they “think” they have

(what they see in their account).
• That’s why most people’s expenses rise with
their income
• Very rarely (unless someone is financially
disciplined) does someone earn more &
maintain the same lifestyle
• Eliminate that option – pay yourself first
Budgeting

• Here's how to create your monthly budget.

• Budget Before the Month Begins. You need to budget every month, before the month starts
• Identify Your Income
• Enter Your Fixed Expenses
• Enter Your Common Unfixed Monthly Expenses
• Figure out what’s left – set a plan as to what’s most important to you with that money & allocate
where it’s going to go
• For example…
• how much to leisure? (important!)
• How much invest?
• How much to put into savings (emergency fund…or saving for particular reason)
• Etc…
Best Investment
Strategy
• Buy & Hold (long term focus) Market has gone up anywhere from 6-
12% on avg. per year depending on where you get your info
• If you invest in companies…
• Buy & hold (long term focus)
• Check balance sheets of companies (short term
cashflow…long term cashflow)
• Dividends? History of paying that dividend & not lowering
it?
• Dollar Cost Averaging – Put money in whether the market goes up or it
goes down
• If it goes up, great your investments are looking up & the
economy is looking good!
• If it goes down, great you just got a bargain on your
purchase!
Signs of a Good & Bad Balance Sheet When
Thinking about Buying Stock in a Company
Negative Earnings - When a company has a negative earnings balance, it means it’s losing money
Negative over a prolonged period.

Negative Equity - When the deficit of negative earnings surpasses the amount of capital that the
Negative company has, this is a red flag that signals that the company is in distress. Avoid at all costs.

Low or Negative Current Cashflow Ratio - "current assets" amount by its "current liabilities"
Low or Negative amount
MICROSOFT
SIRIUS XM
Where to Invest?

• Blue Chip Stocks

• ETFs/Mutual Funds
• ETF – “basket” of securities that tracks an underlying index
• Mutual Fund - an investment program funded by shareholders that trades in diversified
holdings and is professionally managed
• …basically they’re more “safe” ways to invest in a variety of stocks at once so
you can get the benefit of being in the market/investing, but also get the
benefit of mitigating your risk b/c your investment is NOT just tied to one
company.
• Roth IRA
• 401K
• High Interest Bonds
• Etc… (I personally don’t know much about Real Estate so I won’t recommend that to you
personally…although, that’s obviously a good way to go too if you do know a lot about it or
partner with someone that does)
Avoid Investing in…
• Bitcoin (or any cryptocurrency) – not telling you you can’t put money into it….but let’s call a spade a spade….you’re NOT “investing.” You’re speculating & hoping it continues to
go up.
• Video I’ve done on why you shouldn’t invest in Bitcoin next & why you should ONLY invest inn things you understand, have proven track records, can afford to
wait on long term, or can influence the outcome of).
• Any stock that has a bad balance sheet
• Any stock that has negative earnings
• Start ups or IPO’s (Initial Public Offerings – when a company first goes public)
• STOP playling the “lottery” with your investments
• Are there examples where people buy into stock super super low at the IPO or start up level & then strike gold? Of course
• But the far majority will not yield that result…for every one that hits, there are 100 others that didn’t….but you only hear about “when Uncle Frank’s brother’s kid
bought 100 shares of Company X 30 years ago for $500 & now it’s worth $350,000. <<< Major anomaly.
• Stocks that pay a dividend that’s too high (anything 10%+ is probably risky)
• Anything you can’t either afford to wait long term on…or help effect the company’s stock positively.
How to Lose Money in the Stock
Market
• Remember to buy & hold on companies you believe in
• Remember to buy & hold on ETFs & Mutual Funds
• The stock market goes up an average of 6-12% every year (compounding your money long term).

• The ONLY people that usually lose money are…

• Those who aren’t “liquid” enough (people who invested more $ than they could afford to
& need to pull their money out prematurely to use it for everyday life)
• Often these people sell at times where stocks are down (b/c when they
need money it usually correlates with economic downturns or stock market
crashes)
• So, keep in mind the only people that lose money are usually the people
who pull their money out & sell (regardless of the reason).
• Remember the market will always go back up. Be patient. Stay faithful. Stop
checking it everyday.
Pay Off Debt/Loans or Invest?
• Should you pay off your loans or start investing first?
• A lot of people will get excited about investing money (& that’s great!), but often if they have high interest debt, they’d get a better ROI (return
on investment) if they simply put that money toward their high interest debt
• Credit cards
• Card loans
• Etc…
• General rule of thumb…
• If your credit card or car loan (or any loan for that matter) is higher than 8-10%...then you should focus primarily on paying that off first.
• Why? B/c generally speaking your money will only get about 6-12% (more realistically like 6-8%) in the stock market every year.
• So you can lock in that same rate & reap a faster ROI by simply paying off debt first
• Now, if you’re putting money into retirement funds…or maybe your employer has a 401K match, then that might be something different & you can invest as
much as possible so your employer is giving you free money to invest
• Also, if you have debt that’s 8% or lower…then you can invest & pay off debt at the same time if you want (personal preference)
• The next lecture will cover 4 questions you NEED to ask yourself before you invest…
 Best Current High Interest Savings
Accounts
• These could change monthly, yearly, etc…
• So look into these, but then look into potential others.
• These just give you ideas you can search out…

• Discover Bank
• No minimums, no monthly maintenance, free access to over 60,000 ATMs, pays
a 1.7% interest rate on their savings account.
• Ally Bank
• No fees, no account minimums, no fees on incoming wires, and no fees on
cashiers checks.
• Their savings account will pay 1.6% on all balances.
• Capital One 360
• Zero fees, zero minimums & pays you a 1.7% interest rate on your money.
Paying Off Debt (2
Strategies)
• Organize your debt/credit card balances
• Obviously pay all minimums if possible
• Pay down your highest interest rate first (priority)
• Then rinse & repeat with the next highest, etc…
• This is the most financially smart thing to do

• Organize your debt/credit card balances

• Obviously pay all minimums if possible
• Pay down your lowest balance first (regardless of the interest rates)
• Then rinse & repeat with the next lowest, etc…
• This is the most psychologically effective method
(what I did personally to get out of debt)
Where I Invest My Money

Robinhood: https://bit.ly/2Fwm1Uw

M1 finance: https://m1.finance/hMGaDgB4V3j-

Webull: https://act.webull.com/i/154BQ9G7dNch

All have 0 fees (huge for new investors)

M1 Finance & Robinhood have fractional shares