RPF0682-How_to_Set_Financial_Goals_-_Part_2
00:00:00.000 | ♪
00:00:05.440 | California's top casino and entertainment destination
00:00:08.440 | is now your California to Vegas connection.
00:00:11.940 | Play at Yamaha Resort and Casino at San Manuel
00:00:14.480 | to earn points, rewards, and complimentary experiences
00:00:17.680 | for the iconic Palms Casino Resort in Las Vegas.
00:00:21.120 | ♪
00:00:23.660 | Two destinations, one loyalty card.
00:00:26.160 | Visit yamaha.com/palms to discover more.
00:00:30.620 | Hey radicals, before we start the episode,
00:00:32.200 | quick reminder that I am running a flash sale
00:00:34.200 | for Cyber Monday at radicalpersonalfinance.com/store.
00:00:38.400 | Use the coupon code cyber50 to receive 50% off
00:00:42.640 | all of my premium courses available
00:00:45.000 | at radicalpersonalfinance.com/store.
00:00:47.940 | Coupon code cyber50, cyber50.
00:00:51.280 | In addition, all consulting work that is booked
00:00:53.740 | by the end of the day Monday, midnight Monday,
00:00:57.460 | by emailing me joshua@radicalpersonalfinance.com,
00:01:00.020 | I'll give you a 30% discount.
00:01:01.360 | My hourly rate, I'll discount it from $300 per hour
00:01:03.760 | to $200 per hour for personal coaching
00:01:06.920 | and personal consulting work.
00:01:08.600 | Email me joshua@radicalpersonalfinance.com
00:01:10.740 | before midnight on Monday.
00:01:12.540 | Welcome to Radical Personal Finance,
00:01:15.300 | a show dedicated to providing you with the knowledge,
00:01:17.100 | skills, insight, and encouragement you need
00:01:19.380 | to live a rich and meaningful life now,
00:01:21.880 | while building a plan for financial freedom
00:01:23.440 | in 10 years or less.
00:01:25.240 | Today on the show, we continue our series
00:01:28.120 | on how to set financial goals.
00:01:30.820 | I introduced this series yesterday,
00:01:32.660 | gave you some fairly big picture ideas,
00:01:34.760 | encouraged you to dream, not to be scared of dreaming,
00:01:37.560 | no matter what, to pay attention to your goals,
00:01:41.760 | your dreams, so that you can get more clarity
00:01:44.540 | on the things that are actually important to you,
00:01:47.080 | talk to you about how important it is
00:01:49.500 | that you follow your goals,
00:01:50.800 | 'cause you don't have to pay the price in advance,
00:01:52.440 | and I ended with a point where I said
00:01:54.580 | that the clearer the goal, the easier the plan.
00:01:57.040 | And today I wanna home in a little bit more
00:02:00.080 | on the importance of clear goals,
00:02:02.320 | especially as it relates to finances,
00:02:05.120 | because the process of setting financial goals
00:02:07.220 | is in some ways similar to other goals,
00:02:10.520 | but in other ways, it's very different.
00:02:14.100 | And the reason is, money doesn't actually matter.
00:02:18.340 | What matters is what the money is used for.
00:02:24.400 | And frequently I find that people have financial goals
00:02:28.260 | that they have simply not considered.
00:02:31.780 | They've set a goal, but they haven't considered
00:02:34.540 | why they actually need a certain goal.
00:02:37.520 | If you were to go way, way back in the archives
00:02:41.680 | of Radical Personal Finance,
00:02:43.100 | back to Tuesday, August 26, 2014,
00:02:47.700 | and listen to episode 48 of the show,
00:02:51.200 | you would be listening to a podcast titled
00:02:54.460 | "Why You Should Probably Lower Your Financial Goals."
00:02:59.460 | It was one of the more popular episodes
00:03:02.100 | of Radical Personal Finance at the time,
00:03:03.780 | and one of those episodes that I received
00:03:05.060 | a lot of feedback from listeners on,
00:03:09.080 | who shared with me how impactful it was on them.
00:03:12.980 | And in that episode, I talked about
00:03:14.660 | why so many people set big financial goals
00:03:18.780 | without actually stopping and figuring out
00:03:21.100 | what those goals would mean, what they would represent.
00:03:25.380 | The examples I use, people said,
00:03:26.940 | "I wanna save $5 million."
00:03:29.740 | And they don't actually know what $5 million means.
00:03:33.300 | They just simply know that it sounds nice,
00:03:35.300 | it's a nice round number.
00:03:37.260 | And I talked about how important it might be
00:03:39.740 | for some people to lower their financial goals.
00:03:42.420 | Because the higher you set your financial goals,
00:03:44.780 | the bigger the price tag of those goals.
00:03:48.440 | If you set a target net worth number of $5 million,
00:03:51.780 | "My goal is to save and accumulate $5 million,"
00:03:54.580 | there's going to be a significant price to pay for that,
00:03:57.380 | and that price might be too high for you.
00:04:00.020 | Additionally, when you set very high goals,
00:04:02.620 | you may need to, in order to accomplish those goals,
00:04:05.540 | develop very aggressive plans,
00:04:07.700 | and those aggressive plans can wind up costing you.
00:04:10.580 | The higher your goals, the more risk you're gonna need
00:04:13.080 | to take on with your plan,
00:04:15.140 | and it may be that taking on additional risk
00:04:17.600 | is unwise.
00:04:20.100 | And so I talked about the importance
00:04:22.100 | of actually charting out your goals.
00:04:23.540 | Well, today's show is different on that theme,
00:04:26.340 | but I encourage you, go back and listen to this.
00:04:28.020 | Episode 48, what I'm talking about is not new.
00:04:30.420 | I've been talking about this ever since I started the show.
00:04:33.060 | 2014, at this point, was when that episode came out.
00:04:37.260 | But financial goals are different
00:04:39.000 | because money doesn't actually matter.
00:04:41.580 | It's what the money can do for you.
00:04:43.700 | Money has no value.
00:04:45.300 | And so thus, setting financial goals
00:04:47.400 | is kind of stupid.
00:04:48.500 | Who cares if you pile up stacks of cash?
00:04:52.300 | Who cares about those digits on the computer?
00:04:54.720 | You don't actually care about those digits on the computer.
00:04:58.720 | You don't care about those little pieces of paper,
00:05:02.420 | except to the extent that you care about
00:05:06.180 | what those pieces of paper can buy.
00:05:08.580 | You know, I keep a collection.
00:05:11.660 | I did a show on how the Venezuelan crisis
00:05:17.000 | that I've done quite a bit of work in over the last year
00:05:19.840 | and has affected me.
00:05:21.080 | I keep a stack of Venezuelan currency.
00:05:22.920 | My kids play with Venezuelan currency.
00:05:25.540 | Church meeting on Sunday,
00:05:28.860 | my son's got a big wad of money in his pocket.
00:05:31.960 | I had to lean over and ask him,
00:05:32.800 | "Is that Venezuelan money in your pocket or local money?"
00:05:36.160 | And he said, "It's from Venezuela."
00:05:37.640 | It's just totally worthless.
00:05:39.000 | The kids play with it, they crumple it up.
00:05:41.120 | And it's so kind of weird for me to see
00:05:44.760 | just money floating around,
00:05:46.760 | but yet it drives home the point
00:05:48.400 | of how worthless currency is
00:05:51.240 | if it loses its value as a means of exchange.
00:05:54.520 | You know, we all know that with paper currency.
00:05:56.540 | The only value that paper currency has
00:05:59.280 | is simply if people are willing to accept it
00:06:01.440 | in exchange for goods and services.
00:06:03.120 | The value is all entirely subjective.
00:06:04.920 | It's in your head.
00:06:06.680 | That's why the Venezuelan money is worthless
00:06:08.980 | and the Euro is not.
00:06:11.120 | If you saw a pile of, you know,
00:06:12.940 | I didn't even bother to stoop down
00:06:14.960 | to pick up the money floating around my floor
00:06:17.680 | 'cause I knew it was worthless Venezuelan money,
00:06:19.560 | but you can bet your Euro
00:06:22.120 | that if I would look down and saw a stack of Euros
00:06:24.280 | just fluttering around down there,
00:06:25.720 | I would be scooping those things up.
00:06:29.000 | So the money itself doesn't matter.
00:06:31.320 | And so when you set financial goals,
00:06:33.240 | if you're actually gonna achieve something,
00:06:34.840 | the only way to put power behind your financial goals
00:06:37.320 | is to know what that goal represents.
00:06:41.180 | And as with any goal,
00:06:43.100 | if you can know what a goal represents to you,
00:06:45.380 | you know your why.
00:06:46.940 | And if your why is powerful enough,
00:06:50.620 | it'll pull you through to the goal achievement.
00:06:54.180 | Best example I've ever heard of this comes from years ago.
00:06:59.820 | I mean, years ago,
00:07:01.260 | I taught Dave Ramsey's Financial Peace University.
00:07:03.660 | And at the time, I don't know if he still does it,
00:07:05.900 | he used the example of paying off debt.
00:07:08.180 | So he used the example of paying off debt or saving money.
00:07:12.240 | And he was talking about the importance of why
00:07:15.440 | on your financial goals.
00:07:18.400 | And the question that he asked,
00:07:19.840 | and this is so deeply powerful to me,
00:07:22.720 | I've asked it to hundreds and hundreds of people.
00:07:25.740 | But the question that he would ask to people
00:07:28.000 | is he would say,
00:07:28.840 | could you say people who are broke, in debt, no money,
00:07:32.440 | and say, could you save 10,000 bucks this year?
00:07:35.080 | People say, no, I can't save $10,000, I'm broke,
00:07:37.760 | I'm a dad, don't make much money, I can't save $10,000.
00:07:41.540 | And you say, well, tell you what,
00:07:43.280 | what if your son was diagnosed with a serious illness?
00:07:47.620 | And that serious illness was guaranteed to kill him
00:07:53.160 | one year from today.
00:07:54.500 | But the amazing thing is that there's actually
00:07:58.620 | a miracle cure that is available for this illness.
00:08:02.880 | There's an injection that you can buy.
00:08:05.880 | And if he receives this injection,
00:08:07.760 | he'll be saved from this illness no matter what, guaranteed.
00:08:12.480 | Problem is this injection costs $10,000
00:08:15.360 | for a single injection.
00:08:16.640 | And the company that makes it
00:08:17.800 | doesn't accept health insurance,
00:08:19.360 | they don't give loans,
00:08:20.800 | you gotta make sure that you actually pay for this thing.
00:08:23.840 | So the question is, could you in the next year,
00:08:26.840 | save $10,000 in order to buy this life-saving medicine
00:08:31.840 | for your son?
00:08:36.440 | And of course, when you frame the situation like that,
00:08:41.440 | every single time, you're gonna say yes.
00:08:47.240 | And we could make it any price tag,
00:08:51.120 | we could make it $10,000, we could make it $100,000,
00:08:53.600 | we could make it a million dollars.
00:08:55.360 | Getting to the million dollar realm,
00:08:58.760 | it's harder for some people to save that money,
00:09:00.720 | but they could steal it, they could borrow it,
00:09:02.480 | they could fundraise it,
00:09:03.560 | they could come up with the money some way.
00:09:05.760 | But when the why is powerful enough
00:09:09.400 | and there's enough emotional energy,
00:09:11.720 | then the how quickly presents itself.
00:09:16.240 | And in fact, you don't even have to solve the how.
00:09:19.080 | If I gave you that as an intellectual exercise,
00:09:22.040 | I said, how would you come up with an extra $10,000 this year
00:09:24.280 | to save life of your son?
00:09:25.640 | You'd have dozens of plans and you'd have backup plans
00:09:28.840 | in case the first few dozen plans didn't work
00:09:30.840 | because it's that important.
00:09:33.200 | And so that's the key with setting financial goals
00:09:35.240 | is you have to understand the why.
00:09:37.240 | If there's a big enough why behind a goal,
00:09:41.640 | you'll make it happen, you'll figure it out.
00:09:46.560 | But financial goals in and of themselves
00:09:50.200 | don't have any emotion, they don't have any why,
00:09:53.800 | which is why they're often not reached.
00:09:56.200 | I'd like to save $1,000 this month, why?
00:10:01.680 | I don't know, sounds good, I know I kind of feel guilty
00:10:04.360 | 'cause all these crazy personal finance podcast people say,
00:10:07.680 | gotta save money.
00:10:08.760 | Well, if you don't actually care about saving money,
00:10:10.360 | you're not gonna do it.
00:10:11.520 | Why is it that the average American,
00:10:16.720 | that half the American population
00:10:20.240 | can't put their hands on $1,000 cash?
00:10:22.840 | Why?
00:10:24.940 | It's not 'cause they don't have the money,
00:10:28.440 | it's 'cause they don't care.
00:10:31.800 | It's 'cause it's not important to them.
00:10:33.760 | Nobody has either ever made the image
00:10:38.240 | of what it means to have $1,000 saved
00:10:40.920 | so attractive to them that they really want it
00:10:44.000 | and build up that desire as to what it would mean for them,
00:10:47.080 | or no one has ever ramped up the pain sufficiently
00:10:52.960 | to the point where they feel like they need to bother.
00:10:57.120 | So they don't bother.
00:11:01.640 | (silence)
00:11:03.800 | And as the numbers get bigger and the goals get different,
00:11:07.040 | the concept stays exactly the same.
00:11:08.920 | So accumulating money for its own purposes is dumb.
00:11:15.640 | There's no point to it, there's no benefit to it.
00:11:18.260 | If you're a miser and you're a miser
00:11:23.920 | who has 20 gold coins buried in mason jars around your house
00:11:29.520 | versus a miser who has 40 gold coins
00:11:32.840 | buried in mason jars around your house,
00:11:35.160 | nothing about your life changes.
00:11:38.620 | You just have double the amount of gold coins.
00:11:42.740 | The gold's gonna sit in the ground,
00:11:46.200 | the jars are gonna get rusty and it's just gonna sit there.
00:11:49.040 | Doesn't do anything for you.
00:11:50.480 | Money that's still, that's static, no matter the form.
00:11:57.360 | Gold coins in your backyard, pieces of paper in your wallet,
00:12:02.000 | digits on your computer, tracking software.
00:12:04.980 | Unless the money has a job, unless the money has a meaning,
00:12:08.280 | unless the money has an impact, it's pointless.
00:12:11.400 | So when you're setting financial goals,
00:12:16.040 | the magic secret to setting good ones
00:12:19.320 | is to focus on the why.
00:12:20.760 | What does this mean?
00:12:24.860 | Now in coaching, when you study how to be a good coach,
00:12:28.540 | one of the things you learn is to help people dig into why.
00:12:31.580 | Why do you want this?
00:12:33.100 | And it can kind of be a fun game
00:12:35.500 | that my two-year-old plays with me constantly.
00:12:37.940 | Why, Daddy, why, why?
00:12:39.420 | We can go eight questions deep.
00:12:41.460 | But somehow we, most of us adults
00:12:44.940 | have lost that two-year-old why question.
00:12:47.660 | But yet it's really useful.
00:12:49.020 | I'd like to earn $100,000 this year.
00:12:54.220 | Why?
00:12:55.060 | Well, 'cause it sounds good, not gonna be very powerful.
00:13:01.060 | Or because it'll allow me to start a business
00:13:04.820 | that I wanna do.
00:13:05.940 | Why, why do you wanna start a business?
00:13:08.300 | Because it'll give me freedom and control over my day.
00:13:10.500 | And if I wanna sit at home and eat pancakes
00:13:12.360 | with my family in the morning,
00:13:13.500 | instead of rushing off to the office
00:13:15.560 | to be there at the crack of seven, I can do that.
00:13:18.200 | We can follow the train on.
00:13:21.860 | Why is this important?
00:13:22.940 | Why is this important?
00:13:23.900 | Why do you care?
00:13:24.740 | Why do you want this?
00:13:25.560 | Why do you wanna do that?
00:13:26.760 | Money goals should always be articulated
00:13:32.780 | in terms of what they mean for you,
00:13:36.340 | what they will allow you to accomplish.
00:13:38.420 | If I earn this certain amount of income,
00:13:41.820 | then I'll be able to accomplish this.
00:13:43.700 | Or if I earn this certain amount of income,
00:13:45.420 | it will represent that I have accomplished this.
00:13:48.300 | If I save this amount of money, it will represent this.
00:13:53.340 | Here's why that's important to me.
00:13:55.440 | Here's why I care about that.
00:13:59.300 | Here's why I'm pursuing this goal.
00:14:04.100 | If you don't know the why behind your financial goals,
00:14:09.780 | you won't make progress.
00:14:11.700 | But if you know the why,
00:14:13.100 | you might make progress very quickly.
00:14:16.960 | As we pivot to part two,
00:14:20.580 | because when you know the why,
00:14:23.360 | the how might change.
00:14:28.040 | When you are clear enough on your why,
00:14:33.020 | the how might change.
00:14:37.920 | One of my goals in speaking to you
00:14:43.540 | has been to talk about the why enough
00:14:47.780 | so that you can see how the how changes.
00:14:50.820 | I was so gratified to see a comment from a listener
00:14:55.620 | I was talking about the FIRE movement.
00:14:58.300 | And I shared the comment on social media.
00:15:00.300 | I said, "If you hate your job, FIRE is not the solution.
00:15:03.380 | You're just gonna hate your job for longer
00:15:05.700 | while you live on nothing,
00:15:09.740 | meanwhile just hating everything.
00:15:11.060 | So now you're not gonna have any fun
00:15:12.280 | of spending money on anything
00:15:13.380 | 'cause you just gotta quit, gotta save money and quit
00:15:16.520 | while you hate your job.
00:15:17.620 | The simpler solution is go find a better job
00:15:20.780 | and then go ahead and save money towards early retirement."
00:15:25.020 | For me, it's one of my, I guess,
00:15:27.700 | one of my cards that I wanna,
00:15:29.460 | drums that I'm gonna beat
00:15:31.300 | in this world of the FIRE movement,
00:15:33.280 | the current iteration of the financial independence movement.
00:15:36.380 | Because as I see it, it's far more efficient
00:15:39.420 | instead of worrying about saving hundreds of thousands
00:15:42.420 | or millions of dollars,
00:15:43.380 | it's far more efficient to build a life
00:15:45.740 | that you're not desperate to retire from.
00:15:48.500 | And I was so gratified to see a comment on social media
00:15:50.980 | from someone who said that my question of,
00:15:52.820 | "What would you do if you knew you could never retire?"
00:15:55.180 | was life-changing for a listener who shared that with me.
00:15:58.020 | And I love that because to me, that's the key.
00:16:00.420 | What would you do if you knew you could never retire?
00:16:02.320 | Start there.
00:16:03.280 | Because that how is a lot simpler.
00:16:07.380 | I'll use my own story.
00:16:10.700 | Back when I was a financial advisor,
00:16:13.420 | I couldn't do this podcast
00:16:14.900 | because of the fact that I was a financial advisor.
00:16:18.040 | And you gotta deal with the teams of lawyers and the SEC
00:16:21.260 | and your marketing speak and FINRA and blah, blah, blah.
00:16:25.060 | So I couldn't do my podcast.
00:16:27.260 | Now, I had a choice to make.
00:16:29.700 | I said, "Well, I could either save a whole bunch of money,
00:16:34.220 | "make a lot of money,
00:16:35.220 | "do this business the way that I'm doing it,
00:16:37.420 | "and save a bunch of money,
00:16:39.020 | "become financially independent, and then quit.
00:16:43.100 | "Or I could pursue a different plan."
00:16:47.860 | And when I laid out the different plan,
00:16:51.340 | I decided that it was far more efficient for me
00:16:54.300 | to just quit without having all the millions of dollars
00:16:57.540 | saved and go and build a new business
00:17:02.180 | than it was for me to spend years working on something
00:17:05.980 | that I didn't really care all that much about.
00:17:09.060 | 'Cause I didn't really care
00:17:09.900 | about having millions of dollars in the bank,
00:17:11.940 | except for what the millions of dollars
00:17:14.060 | in the bank would represent, which was freedom.
00:17:16.420 | But you can either achieve freedom with a high net worth
00:17:21.180 | or with an ongoing income,
00:17:23.380 | and you can just simply create the income
00:17:25.720 | by building a business.
00:17:27.080 | And the only downside that I could come up with
00:17:31.540 | to doing what I've done was the fact
00:17:34.980 | that I'll never be able to say
00:17:37.380 | that I didn't build my wealth
00:17:38.740 | from teaching people how to build wealth,
00:17:40.900 | which is one of those things
00:17:42.360 | where it's not scamming necessarily,
00:17:44.600 | but it's always like, "Eh, I kinda wish I was rich before."
00:17:48.540 | But why waste years and years just for that?
00:17:52.540 | So if you desire freedom, go and build freedom
00:17:57.500 | with some other plan that doesn't require years and years
00:18:00.560 | and years of savings.
00:18:02.420 | The how for me to achieve, to do what I wanted to do
00:18:05.780 | to fulfill my goals became simpler
00:18:07.980 | once I realized why I was pursuing a plan.
00:18:11.860 | And there's so many examples that we could use.
00:18:16.940 | Once you're clear enough on what you want the money for,
00:18:19.740 | you might start to get creative
00:18:22.300 | with all kinds of ways that you can accomplish it.
00:18:24.700 | Let's use some smaller examples
00:18:26.780 | other than just not ultimate financial independence.
00:18:29.320 | Let's say you set a goal of saving an emergency fund.
00:18:32.780 | It's a reasonable goal.
00:18:35.740 | It's a good goal.
00:18:36.580 | I think you should do it.
00:18:37.640 | Let's say you say, "I wanna save
00:18:38.900 | "three months worth of expenses, 10,000 bucks, right?
00:18:41.420 | "I wanna save $10,000 of an emergency fund."
00:18:43.940 | Why do I wanna save $10,000 of emergency fund?
00:18:48.100 | Well, I wanna have a plan in case I get sick
00:18:52.100 | or hurt, can't work.
00:18:53.560 | I wanna have a plan in case I lose my job.
00:18:55.860 | What's your current savings rate?
00:18:59.340 | I save 500, that could save $300 a month.
00:19:02.300 | Well, if your goal is to save $10,000
00:19:05.900 | and you're saving $300 a month,
00:19:08.120 | if my podcast math is anywhere correct,
00:19:12.360 | you're looking at almost three years of savings
00:19:15.480 | to reach that goal, 33 months.
00:19:19.120 | It's a long time.
00:19:20.160 | So when you break it down, you say,
00:19:23.820 | "Why do I want this emergency fund?
00:19:25.440 | "What does this represent?"
00:19:26.960 | You may be able to get there far faster
00:19:30.220 | through some alternative approaches.
00:19:33.520 | Maybe you could minimize the need for higher expenses
00:19:36.560 | by clearing some debt.
00:19:38.260 | That's kind of obvious, but I talk about, for example,
00:19:43.520 | the value of buying the thing that the money would buy,
00:19:47.340 | maybe storing some food and water.
00:19:49.420 | If you have three months of food stored in your house
00:19:53.180 | that you could live on an emergency,
00:19:55.400 | then you can very reliably lower the target amount of money
00:19:59.880 | that you need to save by the amount of food
00:20:03.300 | that you have saved.
00:20:04.740 | And you might be able to save that food from other means
00:20:07.500 | other than just in the financial system.
00:20:09.500 | There may be various ways you could plan and say,
00:20:13.500 | "Well, I would cut these subscriptions,"
00:20:15.140 | so you can minimize your need for savings there.
00:20:18.340 | The point is simply that there's more than one way
00:20:21.120 | to be prepared for an emergency
00:20:24.100 | that's not just an emergency fund.
00:20:27.660 | Or maybe you set a goal of buying a new car.
00:20:30.160 | That's your financial goal.
00:20:31.720 | Well, what do you want the car for?
00:20:33.360 | What do you want it to represent?
00:20:35.000 | A lot of people buy cars just 'cause they're bored.
00:20:38.860 | So if you say, "I wanna buy a new car 'cause I'm bored
00:20:43.120 | "and I feel like it'll add a little spice to my life,
00:20:46.140 | "are there other ways that I can solve my need
00:20:48.780 | "for alleviating boredom?"
00:20:51.360 | Maybe instead of buying a new car,
00:20:54.400 | we'll take that money and we'll move to Ho Chi Minh City
00:20:58.020 | and enjoy Ho Chi Minh City
00:21:00.900 | and enjoy using all of the transportation options
00:21:03.660 | that are there and alleviate our boredom
00:21:06.500 | in a more efficient way,
00:21:08.140 | or perhaps a more pleasurable way, not saying it's cheaper.
00:21:11.100 | And again, my big financial goal, I wanna retire.
00:21:16.660 | Why?
00:21:17.500 | Well, because I hate my job.
00:21:20.820 | Isn't it better to just substitute a career
00:21:23.180 | that you don't hate, change your job out?
00:21:25.640 | Because once you do that,
00:21:29.200 | all of the financial numbers can change.
00:21:31.580 | Yesterday I was doing coaching calls.
00:21:35.220 | I have a handful of private clients
00:21:36.700 | that I work with on an ongoing basis.
00:21:37.940 | They're all entrepreneurs.
00:21:39.240 | So I do coaching calls on Monday morning.
00:21:44.180 | And I was working with clients
00:21:47.340 | and we were running the numbers on one guy's situation.
00:21:52.740 | And this client is in a decision point
00:21:55.660 | because he's running a very big business.
00:21:59.160 | It's extremely profitable,
00:22:01.460 | millions of dollars of income and value
00:22:06.460 | and extremely profitable.
00:22:08.840 | But the question is, do I wanna get bigger?
00:22:11.660 | Doesn't need the money,
00:22:12.780 | already has more money and more income
00:22:15.260 | than he's ever gonna spend.
00:22:17.100 | Frugal guy, doesn't need the money.
00:22:19.260 | And so the question comes down to,
00:22:20.860 | should we keep building?
00:22:22.560 | Should I keep growing?
00:22:23.720 | I could pull back, put everything on to autopilot,
00:22:28.100 | just coast, make the money, save the money.
00:22:32.460 | He's never gonna spend the money.
00:22:34.380 | The money is just gonna be given away
00:22:35.660 | when he's dead anyway.
00:22:37.580 | So should you just coast and live the good life
00:22:40.960 | or should you keep building?
00:22:42.360 | Should you go to tens of millions
00:22:46.220 | and hundreds of millions of dollars
00:22:47.900 | instead of just a few million?
00:22:50.420 | The only way to answer that question would be why?
00:22:53.120 | The money itself becomes immaterial
00:22:58.880 | and it becomes a matter of what the money represents.
00:23:02.120 | And I find that really exciting
00:23:09.200 | because what money represents
00:23:10.760 | is some really exciting stuff.
00:23:12.360 | For example, I've got really big,
00:23:17.200 | I've got really big income goals personally.
00:23:21.160 | I don't know how long it's gonna take me to hit them,
00:23:26.640 | but I'm really committed to them
00:23:28.080 | because of what it represents.
00:23:31.440 | First, of course, what I can do with the income
00:23:34.760 | and what that represents,
00:23:36.140 | but also what it represents for me,
00:23:39.440 | for my personal development,
00:23:40.880 | for my self-actualization,
00:23:43.200 | needn't abuse the hoity-toity term.
00:23:46.920 | Right?
00:23:47.760 | For me to generate millions of dollars per year of income
00:23:54.200 | requires me to affect hundreds of thousands of lives
00:23:59.200 | positively.
00:24:00.760 | That's my goal.
00:24:03.200 | And one of the ways that I can measure that
00:24:05.360 | is through income.
00:24:07.340 | It's not the income that matters, it's just money.
00:24:12.240 | I'm not gonna spend it.
00:24:14.480 | I'll save it, I'll spend it, save it, whatever.
00:24:16.640 | But the point is, it's just money.
00:24:18.340 | But what the money represents is world change.
00:24:23.200 | What the money represents is families changed,
00:24:28.040 | which is one of my most important things.
00:24:32.040 | And it's the same thing for you.
00:24:34.160 | What the money might represent is you conquering
00:24:36.760 | your laziness.
00:24:40.040 | What the money might represent is you conquering
00:24:43.560 | the bad start you got in life.
00:24:45.560 | What the money might represent is you conquering
00:24:49.280 | your self-discipline.
00:24:51.200 | Might represent any number of things.
00:24:57.700 | But once you understand what the money represents,
00:25:01.580 | then you have a goal that has power
00:25:04.800 | and it can pull you forward.
00:25:06.200 | So let's close it out today with two words.
00:25:12.760 | Why do you care about the goals that you're setting?
00:25:16.760 | And then how can you accomplish what you care about
00:25:21.920 | in a really effective way?
00:25:25.360 | Simple example.
00:25:28.300 | And I use me because of course you're listening to me.
00:25:32.540 | I feel bad always using myself, but I know myself better
00:25:37.300 | and I figure you know me pretty well,
00:25:39.400 | and so if I use examples that you know,
00:25:41.160 | you'll understand those examples better than me
00:25:43.400 | just using anonymous people all the time.
00:25:46.800 | Thank you to so many of you who participated,
00:25:52.680 | bought my courses, booked consulting with me,
00:25:55.440 | with the Black Friday, Cyber Monday,
00:26:01.360 | big sales I've been running the last few days.
00:26:02.840 | Thank you, thank you, it's been awesome.
00:26:05.280 | Response is outstanding.
00:26:09.940 | That money, that large influx of cash
00:26:14.220 | represents change.
00:26:19.540 | It represents change that I can help people accomplish.
00:26:25.460 | This is why, so my goal, one of the reasons why I do this
00:26:32.200 | is because I want to see societies transformed.
00:26:37.260 | I wanna see families transformed,
00:26:38.860 | I wanna see lives transformed,
00:26:40.380 | and I wanna see societies transformed.
00:26:42.460 | I wanna see families stabilized,
00:26:44.180 | I wanna see people in stable situations
00:26:46.100 | so they can raise stable children
00:26:47.780 | so that our society grows and is better, et cetera.
00:26:52.780 | That's one of my missions.
00:26:55.380 | And I believe that when you make wise financial decisions,
00:26:58.420 | that can overflow into other areas of your life.
00:27:00.580 | It has a ripple effect to other areas of your life.
00:27:04.340 | And so there are many ways to do that.
00:27:08.940 | But in order for me to grow my business, my impact,
00:27:13.940 | I have to invest in the tools and the people, et cetera,
00:27:18.780 | to grow that message.
00:27:20.100 | And so the income is great.
00:27:22.700 | It's been a very profitable weekend, which is awesome.
00:27:25.440 | But what that profit represents is additional impact,
00:27:29.700 | additional change, additional products,
00:27:32.260 | additional services, additional insight,
00:27:34.540 | additional message that reaches more people,
00:27:36.860 | and they'll have a ripple effect
00:27:38.340 | because every person that I affect reaches out
00:27:41.260 | and that ripple effect goes on.
00:27:42.900 | We're all people pebbles tossed into a pool.
00:27:48.340 | So every ripple I create in turn will ripple you.
00:27:52.180 | So in unison we ripple, a type of ripple rhythm,
00:27:55.420 | but we need to ripple in a way that benefits our living.
00:27:58.780 | And so the money funds that expansion of the ripples.
00:28:03.340 | That's why I care so much.
00:28:07.320 | This year, this coming year for me, 2020, I am dedicated.
00:28:11.840 | You are gonna hear me sell so much stuff to you
00:28:15.240 | in the next month and this year, again and again and again.
00:28:19.880 | Because the conclusion I came to was I will fail
00:28:25.360 | at my goal of impacting more people
00:28:28.640 | if I cannot build the infrastructure needed to do that.
00:28:34.760 | And because I've been so lazy about sales
00:28:37.280 | and so half-hearted about sales
00:28:39.840 | and I've tilted at all these windmills
00:28:41.340 | of wanting to do things without conflicts of interest
00:28:44.000 | and whatnot from all years in the financial advice business,
00:28:47.120 | I've wasted time.
00:28:48.240 | So the money represents for me.
00:28:51.720 | So whatever your financial goals, think about them,
00:28:55.040 | write them down, clarify them,
00:28:56.840 | and then ask yourself why, why do I want this?
00:29:00.680 | And then the how, lots of ways to do the how.
00:29:04.400 | And there's lots of efficient ways to do the how.
00:29:09.320 | More examples in days to come.
00:29:12.320 | Thank you for listening.
00:29:13.600 | Thank you for your business this past weekend.
00:29:16.360 | Be back with you soon.
00:29:17.440 | Thank you so much for listening to today's episode.
00:29:20.280 | I hope I helped you with some ideas
00:29:21.440 | and some encouragement and inspiration
00:29:22.880 | to help you achieve your goals faster,
00:29:24.320 | living a rich and meaningful life now
00:29:25.720 | while building a plan for financial freedom
00:29:27.120 | in 10 years or less.
00:29:28.240 | As we go, three things.
00:29:30.000 | Number one, I teach a number of premium courses
00:29:33.200 | found at radicalpersonalfinance.com/store,
00:29:35.760 | courses that I have designed and written
00:29:37.880 | to help you solve some specific problems.
00:29:39.840 | Go and check those out at radicalpersonalfinance.com/store.
00:29:43.280 | Those courses contain ideas and strategies
00:29:46.240 | not otherwise released here in the free podcast,
00:29:48.920 | and you can find those at radicalpersonalfinance.com/store.
00:29:52.320 | Number two, I offer a limited amount
00:29:54.440 | of private consulting and coaching work.
00:29:57.280 | If you'd like details on how to talk to me privately
00:29:59.960 | regarding the details of your specific situation,
00:30:01.960 | email me joshua@radicalpersonalfinance.com,
00:30:04.720 | and you will be able to get in touch.
00:30:06.080 | I'll share all those details.
00:30:06.960 | Joshua@radicalpersonalfinance.com.
00:30:09.280 | Number three, catch up with me around the web,
00:30:11.280 | Facebook and YouTube, I'm at Radical Personal Finance,
00:30:14.600 | Twitter and Instagram @JoshuaSheets, S-H-E-A-T-S.
00:30:17.640 | Follow me on those platforms if you are active there
00:30:19.640 | for some additional content not found here in the podcast.
00:30:23.120 | Thank you so much.
00:30:24.240 | - Sweet Hop is an online marketplace
00:30:26.080 | curating the best in premium seating at stadiums,
00:30:28.760 | arenas, and amphitheaters nationwide.
00:30:30.760 | With Sweet Hop's 100% ticket guarantee, no hidden fees,
00:30:34.400 | and the personal high-level service you expect
00:30:36.640 | with a premium purchase, you can relax knowing
00:30:39.120 | you'll receive the luxury experience you deserve.
00:30:41.900 | Visit sweethop.com today to book your premium tickets
00:30:44.920 | to your favorite teams, artists,
00:30:46.580 | and all the must-see live events to Sweet Hop around LA.
00:30:50.040 | S-U-I-T-E-H-O-P.com.
00:30:52.640 | It's more than just a ticket.