41% of households in the 55-64 age group have no retirement savings at all.* I ask myself why? How’s it possible, in the richest country in the world, that almost no one has any money saved? And oh, by the way, the only thing your parents ever taught you about money was to save it. Remember, a penny saved is…
People are just getting by because they have the wrong information. You’re not stupid, you’re not lazy, and I know you want to take care of your family.
As my friend J. Cole says, “I wish somebody made guidelines on how to get up off the sidelines.” Well, I’m your guy.
The fact is, there are 3 things you don’t know about money. #1 How to make it, #2 How to save it, and #3 How to multiply it. Number #3 is the most important one, but you can’t do it until you do the first two.
Let’s start with the first one. Your parents and the school system didn’t teach you how to make money. And by the way, making money is the only way to ever have money. Saving, by itself, cannot create financial freedom.
Three ways to create money:
Look, I started with a job that earned $3,000 per month and I literally couldn’t pay my bills. I figured out how to do #2 Commissions and Bonuses, as uncomfortable as it was, and quickly got my income to $10,000 per month. At that point, I was saving more money a year than I used to make. I didn’t even think about investing money until I had $100,000 saved in the bank. All I did was focus on #1 and #2.
Remember, your parents told you over and over, “Save your money”. Everybody knows this, and it’s not working! Why? Because in the beginning of your journey to wealth your focus should be on making more money.
1) Salary
The money you make from a job. Selling time in exchange for dollars. This is the most heavily taxed form of income.2) Commissions & Bonuses
This is performance based income. You get rewarded for above average production. This form of making money is always tied to revenue, and this is the only real way to control the increase of your income. The more you can attach to the revenue of your company the better chance you have of controlling your income. No one really wants to work for commissions, because they’re not willing to do the things necessary to stay highly productive and do more than just enough to get by. Your goal here should be to have more commissionable income than earned income from your salary.3) Income from Investing
This is a whole, complicated topic that I’ll save for a future article. This is what you have to get great at to create indestructible wealth.
