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It wouldn’t be a healthy Friday without Cinco Bala. This weeks top 5 lessons, hacks and quotes I’ve been pondering, applying and battling.
For those of you who are new, this is a concept I took from Tim Ferriss. (This is just focused on MLM and online marketing) If you don’t subscribe to his newsletter. You should do it.
Lesson in Online Marketing: Why Top Earners Go Broke –This clearly applies to top earners in network marketing and big earners in other avenues.
There’s a whole slew of information I could share here but I’m going to go over the basics and have you listen to the most recent podcast episode titled “Why Top Earners Go Broke” to get things started.
The worldwide financial situation and personal finance are passions of mine and it makes me insanely sad to see people in my life making hundreds of thousands or millions of dollars only to watch it vaporize after one bad situation.
The ROOT of financial ruin IF you’re making a lot of money (even if you’re not) is spending up to your means.
Meaning if you’re making $500,000 you should not spend $500,000.
Seems obvious if you’re making $50,000 a year, but I promise, the lure of spending more when you’re making more is very real. It’s VERY easy to spend up to your limits without even realizing it. (I do it sometimes and I’m a psycho about this.)
Which is why you need a plan. NOW.
BEFORE you start crushing it.
And if you are crushing it, if your business was taken away from you overnight, what would happen to your finances?
What if you couldn’t operate in the industry any more? What if you LEGALLY couldn’t do it?
What would you do?
Investments and protection are a topic for another time but the bottom line basics are:
-Don’t spend all you have.
-Determine when “enough” is.
-Invest the rest.
Meaning – figure out what your ideal lifestyle looks like, financially. Work to earn it. And invest everything above that.
And up until that point, invest a predetermined amount of your income.
I have personal friends who at one point made $800,000+ in their business on a nearly 100% residual basis.
One bad decision crippled his income to about $100k.
He lost his homes to foreclosure, sold his cars and liquidated almost everything.
No doubt, that kind of hit would have crushed him no matter what.
But I promise you that if he invested even $200k each year instead of $20k, his financial situation would have looked much different.
Don’t make the mistake of being a top earner who has to go get a real estate job because you didn’t have a plan.
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