4 Steps To Become A Millionaire

You know there are in fact steps for
becoming a millionaire. 4 specific ones. And today in this video, I’m going to share
with you the 4 things I did to make my first million then my next 10 million
and on and on. And I’m going to break down the science of it so that you
yourself can understand exactly what you need to do to become a millionaire
yourself. So, there are 4 steps that I’m going
to be sharing with you today on how to become a millionaire.
And the first step that I want to give you that is really key is that you have
to know your target. Which means how much do you actually need and why do you
think you need that amount? You know as I do this work with people when they come
out to my events and I take them through their million-dollar game plan, you know
what I almost always find? People think they need more money than they actually
do. It’s actually kind of crazy how much money people actually think they need
when it comes to this game of financial freedom and retirement. And the reason
why is because we’re trained with an accumulation mindset that says, “I need
millions of dollars enough money that I could live on it forever.” Reality is you
don’t need millions of dollars. You need investments that produce a residual
income that can support your lifestyle. So, the first thing you have to know is
how much do you need? And I would frame up your target like this. For me, when I
got started, my target was simple. It was 10,000 a month. My wife and
I basically said, “Kris, if we had 10 grand a month…” We were so poor by the way.
I mean we were crazy crazy poor college kids. You know we had just bought our
second property. And our first one, we were living in for free. And the second
one had an extra $600 a month. And my wife was doing our family accounting and
dude, this was so funny to me. She pulled me into the office kind of concerned
she’s that “Kris, I don’t know what to do.” I’m like, “What are you doing, honey?” She
says, “Well, I’m doing your budgeting and and this is the third month in a row
that we have an extra $600 left over on the Pleasant Grove house. And I don’t
know where I’m supposed to put it.” And I said, “Well, honey. We’ve been getting money
from the basement of our house. Where have you been putting that for the last
year and a half?” She says, “Oh, that was simple. I just write it off against the
mortgage so it looks like we have no mortgage.” I’m like, “That’s so cute.” And
since its internal, it probably doesn’t matter. But that’s probably not really
the way it works. My wife just she loved the fact that we
just didn’t have mortgage. So you thought that was pretty good. You’d think that
was be pretty cool too, I think. Now, I have this extra money coming in our
second property and I pay it to the mortgage but there’s $600 left over. And
I’m like, “What are you doing with it?” She’s like, “I’m paying off debt.” I’m like, “Okay. So,
that’s making you happy.” Here’s one that all changed. Its when she asked me, “Hey,
Kris. Can we get another house?” And I thought to myself, “You’re the skeptic,
are you asking me for another house?” She saw that the first house equaled live
for free. The second house meant 600 left over. She knew that a third house would
mean what? She knew it would be more money, more freedom, more getting out of
debt, more putting money in savings. And so we basically got together and dreamed
and said, “How much money would we want where I could leave my job. Doesn’t
matter what degree I get in college.” if I even went to college. And we decided that
our target was $10,000. This is super meaningful part of your journey. You have
to know what your target is, you have to know what your number is. Because you’re
if you’re disconnected from that, you won’t have the focus to stick with
something. So, know your number. And just decide right now. I bet you already know
what it is. Is it 4,000? Is it 6,000? Is it 20,000? Is it 10,000? Come up with the number that is real for you? And don’t pick an arbitrary
large number. Like, “That’ll be great.” Listen if, there’s no difference between 10 and
20 thousand, then 10,000 it is. If there’s no difference between 10 and
9 thousand then 9,000 it is. If there’s a difference between 9 and
8. then 9 it is. So in other words, come up with the number that you know
would actually help you have the lifestyle that you want. Okay, so the
second thing. This is the part that you’re going to hate but I got to tell it
to you. I agree with my buddy who’s video you’re gonna watch right after this
because I want you to get the next level of information. P-Y-F. It stands for what?
Pay yourself first. Pay yourself first means that you’re not going to work just
for your bills. It means that you’re not just going to work for you know paying
your mortgage or paying your your cell phone and the other gadgets and things
that you have. Paying yourself means what money am i earning that I get to keep
that is not for my bills? Most people have checked to check so they would
think that number is really small but I’ve got news for you, you need to
struggle to figure out how to make that number a big whopping 40%.
40% of your income saved and set aside for what purpose? Well, I’m
going to tell you right now, it’s not designed just to sit in savings. Are you
kidding me? The problem with our savings account is that what you’re really
saying is that you’re investing in cash. And every investment goes up or down and
valued. Guess what cash does? It goes down it loses value every year about 3% at the rate of inflation. You do not
invest in cash. Your goal is actually to be broke. Now my buddy Grant Cardone, I
called my buddy I’ve never actually met Grant. But I I respect him, I watched his
videos and I’ve got one that I want to recommend at the end of this. It’ll be up
here in the top corner that you’re going want to watch. Because he’s going to do his
version of this and he’s got 5 steps to becoming a millionaire. And I want you
to see the difference and the commonalities because it’s really going to
augment your education and understanding. And this is information that’s
life-changing if you act on it. But he’s going to tell you same as me. You’re going to
set 40% aside. Most people going to say, “Dude, that’s a crazy big number.” Guess what
when you make a lot of money, your biggest bill will be your taxes. I need
you to at least pay yourself what you’re willing to pay the government because you
are a better investment into yourself. At the same time, we go to the third step. If
I’m paying myself first, what’s left now? Well now, step 3 of the 4 is I
have to learn how to invest. Instead of putting that money in a savings account,
do the math for a moment and you’re going to get a little upset with me on this
one, I think because it upsets me. Are you aware right now that the average
savings account in this country pays an APR of 0.32%? So, take the rule of 72. Take
72, divide it by that interest rate. And you know what you get? Like takes 200
years for your money to double. Which means you can’t invest in savings. The
only money that should be in savings is what you need to feel like you have
peace of mind in your private financial life. And don’t make it a really stupid
huge number. That money means to be invested. So, have your sleep one night
fund? But the rest of that, you need to invest it. And what are you going to put it
in? Well, if you’re me, you’re want to diversify. You’re going to want to put it
and I diverse find all sorts of real estate. You know that I I’m in that
single-family housing market game. But I also invest in different businesses, my
own businesses, other people’s business. I’ve even invested in different
companies. I will never however put money in a 401k or an IRA. I will never put
money just loosely in the stock market. That’s what everyone’s doing and don’t
take advice from the financially broken. Because I want you to be broke. I don’t
want you to have 200,000 sitting in a 401k IRA or savings account
earning you basically .0 nothing percent. You got to get it out there. If
it double in 5 years then what do you
expect in 30 years so when you want to retire?
Dude, that money’s got a double many times over which means you got to stop
looking at society stupid financial game plan. Give me a break. Now, the fourth step
is what do you invest in. You invest in things that produce a residual. So for
example, when I actually purchase a property, it actually gives me something
every month. It gives me a residual income. So, if it’s paying me, let’s call
it $400 a month. Guess what? That is a return that I’m getting for money that
I’m putting out. I know my target. I know what I’m trying to get to as far as
paying myself. I invest it in vehicles that produce a residual. Then this 400 is
now looping back and going towards what? Your $10,000 goal. So, my wife and I when
she had that five $600 cashflow month, she said, “What do we need to do?” The game
plan was simple? Because we know… We know that we knew that we want to get to 10,000 a month, it meant that we would need 20 properties. And you know what? We
spent the next 3 and a half years acquiring 20 properties and when I
had 25 properties, I was at 12,000 a month and that’s when
I quit my job. Now, this was the coolest part: When I quit my job, it created the
financial freedom and time freedom to just start doing whatever I wanted and
that’s when I started learning who I was. That’s when I started figuring out how I
want to give back to the world. You know, right now, a lot of my energy and money
and time goes towards my charity efforts. The amount of community service and
helping people that are looking for that way to get lifted up. It’s like so
fulfilling for me. It’s something that I love doing. I couldn’t do it however if I
had a job. The least I could do it nearly as easily. So… Now, I will tell you I love
the game of real estate. This document right here, it goes over the last 4,000
deals that I’ve done over the last 15 years. We’ve just been crushing it. What I
love about real estate is that I can put my money in and it can write me a check
every single month if I do it the right way. If you hang out and subscribe to my
channel, you’re going to get a lot of learning on what that looks like. What I
want you to do right now though is I want you to click the video popping up
right over here. It’s Grant Cardone. He’s got an amazing
information in this video on his perspective on his 5 rules.
I want you to find the one that’s different than mine because I think that
it’s unique I think it’s different. I think it’ll give you actually some
better understanding of what it is that I believe what he believes. And I think
that you have a lot to gain from it. So, click the link. Watch that. Figure out the
difference between our 2 bits of advice. And either way, I think you’re
going to find some strong commonality so that you can move forward and finance to
crush it.

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