All The Financial Advice You’ll Ever Need Fits On A Single Index Card

All The Financial Advice You’ll Ever Need Fits On A Single Index Card

So, I was cruising through YouTube
University the other day. And I came across this video that said all the
financial advice you could ever need on a single index card. And I’m like, “Hey,
that’s interesting. Let’s check that out.” It is kind of stores a small little piece of
real estate. And I started watching the video. And I was like, “No… No! No! No! No! Nooo! I
can’t believe you’re teaching this.” I’m like I’m making a video today on what
should and should not be on your index card. And friends, it’s a small little
piece of paper but everything that you need to know for building wealth and
becoming financially free. So, here is my recreation of the business
card with the dumbest financial advice. I think it was PBS hosted. And it was an
older individual that was teaching… You know, what you should do with money. And
I’ve got my index card and I can fit all of my wealth rules right there that I’m
going to give you right now. I’m just going to tell you that it’s crazy the advice that
is going on in the world today. So, before I share with you like the financial
advice on a single index card that will literally help you become super wealthy,
let me share with you 3 things from this other video that was just like, “I
just like, you have got to be kidding me.” Here’s number 1. Maxed out your 401k.
Could be the dumbest advice that I’ve ever heard for anyone that wants to take
financial control of their future. Why? “But Kris, it’s free money.
you do max contribution and the company matches you. It’s awesome. like, are you
kidding me?” First of all, I give you my money and I’m never going to see it for
decades. Like, why would I give that to you even if you’re matching it? It’s not
real. Its fake, funny money. I can’t use it, I can’t invest it, I can’t do anything
with it. And it’s on the rollercoaster of the stock market. Which means that I’m
going to be averaging 3 4 % on the money. ANd by the way, just so you know, when
inflation is 3% which is what the the value of your dollar is losing every
year. And you’re gaining 4%. 4 minus 3 means that you’re netting 1%. Let
that compound over you know, the next 30 years and you’re going to be happy with it
turning into a pile of nothing. Poof! So, I don’t know why people do this.
It’s stupid. It’s like you want me to take my excess little money I got that I need
to invest and you want me to sock it into something that doesn’t pay me. A
401k? So, dumb advice number 1. Dumb advice number 2, put your money in mutual funds.
Did you know that 95% of mutual funds cannot keep up with inflation? Mutual
funds are this idea of like, “Oh, yeah. Take all the blue chip. Companies out there on
the stock market and you put your money in a mutual fund that will spread your
risk out in all of these companies.” Dude, I got news for you. The majority of those
mutual funds suck. And if you’re just trying to produce 3, 4, 7 percent, I Got News for
you. You’re never going to get where you want to
be in life. And then number 3, pay off your house. Like, are you freaking
kidding me? Pay off my house? That is a really great
plan for someone that has no plan. That’s a really great plan for someone that
doesn’t know what they’re doing. It’s not that it’s bad. It’s that society wants
you to soak up whatever little excess you got and put it in investments that
give you such tiny return that it’s minuscule or nothing. I’ve got a
different index card for you today. So, all the financial advice that you can
fit on this index card is going to be quite a bit different than what I was
just covering right there. Here’s the first thing. And I’m going to start with the
not fun part. In the beginning, when you don’t have a lot of money, you have got
to go through a period of your life called delay gratification. That means
yes you’ve got a budget but there’s a reason. So, it means instead of trying to
find a way to keep up with the Jones or have the nice car now or upgrade the
flat-screen TV, listen it is a slippery slope my friend. If you start spending
money on luxury items versus necessities in the beginning of your journey, you’re
not going to be able to follow rule number 2 on here which is P-Y-F pay yourself
first. Reality is when you work and trade your time for money, you need to know
that the purpose of doing that is to make sure there’s something there for
you to invest with. If you spend 100% of what you make, you’re screwed. You’ll
never be financially secure. I’m not talking about being financially free. I’m
not even talking about being independent. I’m just talking about basic securities
out the window. So, how do you maximize? How do you get to the point where you
save 20% of what you make? Go back to rule number 1. Delay
gratification. This idea of delayed gratification. I know that it’s not sexy.
But I’m telling you, you can get hooked on frugality in the beginning of your
game which is I’m going to save and scrip everywhere I can. Not out of fear. Not out
of scarcity. But because I want to amass everything that I can in my investment
pool, active dollars not trapped in a 401k. Money that I can use to put towards
investments takes me to rule number 3. Invest in real estate and use
80% leverage. Now, it’s very specific and I want to help you
understand why. If I save up $10,000, If I take that $10,000 and I put it in real estate, I can get a 5x borrow on that. I could buy
$50,000 of real estate with $10,000. If I had 40 grand, I could buy
$200,000 worth of real estate for $40,000. Which is really big because we
know that 3,4,5,6 percent returns aren’t going to get us where we
want to go. So what do we need to do? If the stock market is struggling to make
me my 3 or 4, 5 percent, if I take those 401k dollars, you’re like,
“Kris, you want me to not… You want me to pass up the free money just so I can
have the money now instead of putting in a 401k plan?” Here’s why: If I put it in a
piece of property and that piece of property grows 10%, I only put
1/5 of the money in. So, it’s like my money actually growing 5 times bigger
than that. Do you understand that? Let me break down that math for you. If I put
$40,000 into an investment property and that property goes up 10% in value this
year, that $200,000 property now became a 220,000-dollar property. That’s a 20,000-dollar gain.
Remember I put 40 in. 20,000 is 50% of 40. That’s half my money back
in growth. Not to mention the cash flow and the other benefits and the tax
benefits. And the mortgage pay down which accounts for another 4 or 5
percent a year. This is why I averaged 28% each year on my
money on average over my last several thousand deals. Some of them actually
with YouTubers like you that watch me and you’re like, “Kris, dude. Let’s take my
401k, IRA. And let’s actually use your system.” That is actually a real
possibility for you. So, you want to invest it in real estate with leverage.
Don’t buy paid off real estate. The fourth rule is where it gets sexy. This
is bringing sexy back from delayed gratification. Because trust me, a time
will come where you can buy luxury items, okay? This fourth one is you want to re
leverage your real estate. If your real estate is doing let’s call it 25% a year,
then you make 100% on your money in how many years? 25, 25, 25, 25 is 100%. 25, 50, 75, 100. In four years, if I double my money, then I want
to get that money out and do what? Buy a house and another. House just made babies.
My house just multiplied. I went from one house to 2 houses. Now, I’m not average
in 25%. That same dollar sitting in 2 properties now I’m doing 50% a year on
my money. Not boring 3, 4 % with inflation producing 1.
50 – inflation is 47%. And 5 years from now the same strategy could have me
actually doing 100% a year on my money. So, that’s why that’s the
fourth rule. The fifth one is called have fun. That’s just really important in life.
And have fun now goes back to that, “You know, now I have money, now I don’t have
to delay as much gratification.” Now, Warren Buffett 84 billion dollars still
lives in a very modest home and he still drives his own car versus being
chauffeured around. You get to decide like what fun is for you what world
travel looks like what kind of house do you want to live in. But I do want to go
back on that comment on on paying off a house. Because I know some of you are
wondering, “Well, Kris. Do I ever pay off my real estate?” The answer is yes. But
when? That’s the question. It’s a game of timing. When you have enough residual
income from your investments that you can pay off everything and still have
the income that you don’t need to work, then you can pay off your real estate.
That’s the right time to do it. If you do it earlier than that, that’s called
premature payoff. If you pay it off prematurely, it’s going to financially bite
you in the butt because your money’s not gonna Velocify. It’s not going to build
the way you want. So my friends, today everything you need to know about money
wealth and real estate is on a business card or an index card. It’s not on this
one right here. It’s on this one. Thank you for watching this video. And hey,
check it out. “Hey Kris, real estate? Can you give me better instruction?” Yes. I
wrote a manual. A how-to manual on how to do it. It’s my latest book The Straight
Path To Real Estate Wealth. I’m going tO grab it. I got a copy. This book. This is
your manual on how to do real estate and produce 25% annual returns. And I just
had it updated for this economy. We’ve moved 50,000 copies of it. And
this book between the diagrams, it’s a quick read, it’s an easy read. This book
has made millionaires and it’s your turn. The cost of this book is free. If you
just click on the link, all you got to do is cover shipping and we will send this
out to you. I look forward to getting it in your hands. And if you want, it also
comes with a consultation to talk to my team and say, “Hey, I’m better a little bit
just by phone having a coach walk me through what I need to do.” We can provide
for you as well. Either way, get started, you got your index card. Go crush it.

22 thoughts on “All The Financial Advice You’ll Ever Need Fits On A Single Index Card

  1. Hi Kris I recently got your book took out 75K in equity in my home I have a great job and great credit but the New York market seems overpriced can you do a video about difficult markets such as New York PS I live in orange county New York

  2. Hey kris I love watching your videos I’m 14 and I want to try and get into real estate as early as possible any advice? Love your videos btw!

  3. I have my Index Card an i Have the book. I'm ready man an as Soon as I Finish the book I'll be trying to get in contact with your team for Some Advice. Thankyou Again for these Videos. Hope Everyone is having a better day. Peace

  4. One of your best videos yet! Really wish young individuals in high school and college would watch this video day 1

  5. Property goes down in value sometimes ..or can stagnate for a decade or more .. I have $500k invested for 12 years and had ZERO appreciation .. be careful listening to this simple advice ..I did what he said and have yet to make capital gains..

  6. Hey Kris my name is Jamarr. I really want to get involve with real estate and been doing alot of research and by far your videos are the best and I been watching for a month now. I would love to be mentor by you or just pick your brain some more. I would love to get in contact with you

  7. HI Kris i am Shawn from Zimbabwe , if you only know about Zimbabwe you probably have assumed already the kind of financial situation i am in right now and thus i am glad to have subscribed to your channel it is really helping , the problem is most of the economic stuff from your country doesn't comply with here for example the loan acquiring possibilities are very low here , can i have some information on how i can deal with the situation to succeed.

Leave a Reply

Your email address will not be published. Required fields are marked *