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98: How Anyone Can Be Financially Free with David Bach


Today on the Rise Podcast, I'm so excited to introduce you guys to my friend, David Bach. David is the author of what I consider the bible of financial freedom, "Smart Women Finish Rich." David is an absolute savant in terms of saving, investing, and becoming debt-free, and he is amazing and imparting that wisdom in a way that is easy and approachable. If you're like me, and struggle with math and complex financial concepts, this is the interview for you. 

Check out David's work and his latest book, "The Latte Factor" at thelattefactor.com


My new book Girl, Stop Apologizing is available now! It contains some of the most tactical and detailed information I’ve ever given, all in the hopes of inspiring you to stop making excuses and follow the dream that sets you on fire. Get it right here — amzn.to/2RxC6eY

Lastly, if you are looking to add gratitude + goal-setting in your life then head to our shop to grab your Start Today Journal here-- http://bit.ly/2UZOglA

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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
guys it's Rachel, Hollis and I'm here is my friend Trent Shelton was originally. I live in the dream, man. We! U tell listeners, why we're hanging out together, we're hanging out because we're launching my new podcast straight up and I'm super examined seller. Add if you guys are not already familiar Trent. He has millions and millions of fans all around the globe who come to him for a very unique style of coaching yeah rearing. The point is really I can put a stray from the heart and breaking through those native mindsets breakin through a withholding you back in Mostar. We have, people's lives for love that so, if you guys want here more you're, already listening on a podcast platform, go subscribe to straight up with Trent Shelton Short: let's go get it.
One of the cruellest things that I get to see as part of my job is the manifestation of the product or products that I dreamed up and created and figured out how to do like. So many of you as a business owner, you get these ideas in your head and it is incredible to get to watch them come to fruition and I started dreaming about one of our most popular products. The start today journal. I served dreaming about this a couple of years ago. I had been doing this daily practice based on several different people. I had heard about several different things in a kind of put them together into one daily practice, which was every single day. I wrote down the dreams I had for my life, but I wrote them as if they had already happened. There's something really powerful about claiming a goal as if it's already done, and I wrote down every day- and it was how I set my intentions and then I would post about it on social and so many people. What are you doing? What is that? Where do I get that journal and I was like eyes: it's not a journal, it's just a notebook, I'm just riding down the same thing every single day, but what I think is interesting, as business owners or creators is often times. In fact, most of the time your audience will tell you what it wants from you and I kept pushing it off because I was like you guys. This is not a big deal, but it was, and people kept asking for, and I finally just thought what if I turn this into a product and I started to dream and plan- and I literally taped pictures to the wall of my office, of what I dreamed that my journal would look like in the intention behind it, and I wanted the covers to be really pretty, and I wanted it to be something that you could do once a quarter and then, as you complete at each journal. You'd have a stack of this evidence of how intentional you were about your life and we figured it out, and I mean you know some times we messed up on the shipping and sometimes we rest up on the interior, but we failed our way to where we are today, which is the start today journal in the hands of hundreds of thousands of people. So incredible such a blessing for me to be able to go on Instagram and see hashtag start today journal and see people all over the world using this practice as a way to.
In the direction of their dreams, so if you are not familiar- and you want to check it out, you can go over to the Hollis code. Dot com forward, slash shop and find out all about my favorite practice turned my favorite product and, if you're, not in the market. By remember that episode. Seventy two of this podcast gives you the exact step by step so that you can do it in whatever note book you have laying around for free you not to buy a product, but you should be doing this daily practice. It will literally literally change your life. Eyes. This is like a top ten right,
podcast interview for me not in terms of its not the rock, I mean I wish it was, but it's not it's. Actually, my dear friend David Bach, who is the author of so many books that you have absolutely heard of the most famous of which is smart, women finish, rich. What I love about today's interview is that he really breaks down finances and for one case and investment and saving in a way that even me, with my very limited, math skills and knowledge in this area, even I can understand the gist. The conversation is this: whether you are a man or a woman is Ashley. If you are a woman, you know need to be in control. You need to know where your money is, and you need to have a plan for how you are going to have that money. Work for you, so a fight As this is something that you are struggling with, this is an epoch so you do not want to mess it's about an hour
It is a pretty long interview for me, but every single minute of it is worth your type I Rachel Hollis and I've built a multi million dollar media company with a high school diploma and the free information I found on the internet in the fifteen years that I've been building and scaling my company, I have become deeply passionate about helping other entrepreneurs to do the same so each week I'll be sharing tangible and tactical advice and inspiring interviews with the same intention. These are the tools to change your life and your business. This is the rise, podcast sack of your books from your team, and I have them at the house in one of my girlfriends walked in and she was like. Oh my gosh, it's the Bible,
I mean as yet, and I was like. I know I know him. I was just whipping importer ego and she about Peter pants now you're your wisdom has been going back quite a long ways. If people are not already familiar with you will you tell them who you are and what you're all about? How my pleasure won't? You know, I don't know what books often read, but I'm going to guess she read some women in its rich. That was the one okay and that book came out originally over twenty years ago, and so you know go all the way back like wait, a minute the guy, had a guy and of running a book for women in money. Twenty years ago the answer is I I grow up. I learned about money from a woman and that women with my grandma rose Bark and that, for book, smart woman, finnish reaches actually dedicated to her and her life lessons. So My grandmother grandmother made decision Rachel at thirty. That would also change our families entire destiny
She may decision at thirty that she was tired of being broke. The reason I was a big deals that might my my grandparents do not have a college education, neither of them very very middle class, my grandmother, soul, wigs gimbals Department store. She worked in retail and at thirty really just out a total frustration. He turned to my grandfather and she said you know I'm taking over the fact. The family finances said from here on our every week, you're gonna be giving me fifty cents your paycheck, I'm gonna, take future sends out of my paycheck were put in this copy can in the kitchen and we start investing em. You know my grandpa like we don't have one thousand she's a guy. I know I don't want to invest but I'm going to learn and so she did and over her lifetime, which is like a really important lesson. Over her lifetime she became a sulphate millionaire.
Ok. So I just before you go on. I really just. Why are listeners to absorb what you just said, because you know we have this. This journal practice that we do as a community and if I go into the hashtag and I look at what women are writing down without fail Ninety nine percent of this ash out people are writing. I am free. Financially free. I am this is such a focus for our community and I really just want them to hear what you said. She, did not have any experience with us, but she knew tat. She could learn a you know. She like these yes, it was gonna be hard. Yes, I was gonna be difficult and she say it again, starting with fifty cents in a coffee can make herself into a millionaire in white year by the way to just just so they have a a frame of reference for this. I have to go back and think brothers give me children out, but so this has to be like over sixty years ago
wait. Wait, wait! Wait when she started right. My girl has passed away There are more lessons to unpack too, because my grandmother saved in order for my grandmother actually say that money She had to actually change the way she spent money. So she started brown bagging, her lunch in your know will talk about the Lahti factor. In this metaphor, for how you find your money. My grandmother had brown back her lunch, and so she would she star. Carrying her little brown bag of her pre made lunch to gimbals Department store and her girlfriends. Would go out to lunch every day and she's like warmly. If money and there like what you can't. You can't bring Earl Brown Bag Lunch hour with us, that's embarrassing You know she said Sir she's like will. Then I just wanna go. She was sad about that. Like her friends didn't actually support her in the beginning, and If you really go through that, my group and storing data detail like that first year, she saying all this money she goes down. No brokerage firm
She doesn't go to my grandfather. She goes by herself and she walks into a brokerage firms to open up a brokerage it. With her copy can of money and the rogue, the men alms brokerage firm, looked at her scoffed and said to her. You know it. We are open brokerage accounts for women. You to come back with your husband, YAP, and my grandmother was really a strong woman, feisty woman in said, she put her hand on her hepsey you would have my grandmother and she's like you. Geysers for fur for brokerage firms on the street. And if you know what my money, I'll just go, next door They, like ok, MA, am sit down and then they should open up a brokerage account and Ultimately that last year like later when I went to write those the book- smart, woman, finnish, rich and share her life lessons, grandma. How did you do the first year cuz now my grandmother is a self made millionaire, I'm a financial advisor. I have her account in front of me. I see all these amazing stocks you invested in, and she said everything that I bought that first year I lost everything
at the end of the year. I had nothing to show for it and I go what grandpa saying she's like I didn't tell him and then I Sutter s evil, so work you going right now. You're thirty one, you Brown Bab your lunch for a year and you have now thing to show for it and she said no David. I was thirty one years old. I was still broke I just knew that I have They become smarter than I have been the first year because she said the first year I was getting all my financial lies from my network or friends am my. Never boyfriends friends was all poor and leave a liar glad right, because I know you built this huge community and while the community, like she's, like having a fund new commission use where community about them, because I gotta go, find go learn and my mentor that had already been commonwealth answer. She started taking classes and she actually went to people virtue whom who really wealthy and
for help and that all too is what change the directory of the direction of her life. But you know you ask about meme me by my first stock at age. Seven enact annals and I can unpack that for you, because you are so many lessons and how she taught me at seven years old other moms listening and dad too can use. What my grandmother did to me did with me at seven to teach their kids about money which I remember the story from the book was like it was your favorite place. You guys used to go there and get you know a hamburger and fries, and so You got to shit. She got to help you buy a stock and then the book, your like manner, wish. I wish it had been more because of the time that would have been so much worth so much more today, a year, those thousands more than his rich, the young. The lesson was: we were mcdonnel, so I'm seven years old, my favorite rest from the whole world and
he taught me is really simple lesson: you can teach kids in three minutes, she said David. Could I look I loved money at a young age. I won't always want to play monopoly with her. And she said I will teach you how to play monopoly in the real world, and I'm in each area rich in the real world. So she said he a worsening your damn it Mcdonald's, it's your favorite restaurant. But if you look, that woman right now whose work the cash register she's a job. And that job pays minimum wage and minimal wages. Eighty five cents an hour which to me when I was a kid, cynical whole lot of money, but we note she said: that's all really hard way to make a living and then she said now, there's a second type of person, and that's you right now. You're here in spending money. That's what most people are like an. There is a third person who this place and is getting rich off of every single person who comes in here and orders food, and said you getting a learn: how to be that person and I'm gonna
without getting a job. I don't understand and she's like I'm gonna teach you, and so she took me home, opened up, lost your journal show me how to look up Mcdonald, circled, M c d and said today I'm going to teach you how to buy one share of Mcdonald's and now you're, seven years old own this place when you go you'll make money for yourself, you'll make money from your friends on, in America get rich. She said That's what started my personal journey to here, yeah here Here's that I want to cause I'm thinking of myself a decade ago and my knowledge of the stock market was really limited to a foreign k that I you know a country did too and that I really didn't understand. So before we go for because I think you're so good at explaining these terms. Really simple way for the for the listeners who feel like
right now we're talking about something that is so attainable so outside their realm of possibility, the idea of ever owning soccer why'd. They would even contemplate that because I think most people listening I'm gonna put words in their mouth right now, but I would assume that most people listening. I think that they can work Their way to wealth does that like it sort of like the Smet like I can work if I ever get a good enough job. If my business as well enough, I can- and this is a way of making your money work for you- does that does that fill a good way of explaining it here. I think it's a great way planning it. So I just put, book out last week on the Lahti factor. Answers, little story designed to help meal the eight percent of Americans who had never want to reach a fun. It would never read a financial book. We packaged up the life lessons you'd know into this. Little tiny store that you can read and like ninety minutes so,
I'm sitting here in Atlanta today, and I just love CNN, I tell you a story that happen sooner, because I think it will help. You know your listener right. So I met CNN, here the person doing my make up his like already coming to talk about it. I've got this little book called the Lahti factor. These are all creatures like a really needs financial vice like what what do you think I shoot it? What stocks would you recommend or what mutual funds would you recommend and I got wont. Let me let me tell you what's in the bark and let me tell you what you need to deal, I'm gonna make it super simple for you, here's what you need to do, not knowing your situation. This is what so we Daniels learns in the book at twenty seven years be paying yourself first one hour day of your income. Now, there's this the got room matters it. It's like the biggest green room, I've seen and all their people gain makeup done everybody kind of experts. Turning to me and listening and I go, you need you we can see in anyone. You have a forlorn cape lamb. You need
to be paying yourself first one hour a day of your income so. You come to work at nine and you work until five inches. That's came to work until three on leaving here ten, I got ok, say hi SAM, I it's it's the first hour day of your income and you need to make sure that your saving that percentage in your foreign k plan, because how could I forget Gus, for me because this is not math and numbers are not my spiritual, gifting, so you're saying if someone or are you saying, let's say someone makes twenty bucks an hour. You are saying one day a week, you're you're taking twenty dollars. Is that when you know it's, ok, it's one hour a day of your income. So if you make twenty dollars an hour, you need me heaping twenty dollars a day of your income. So yeah you make a hundred dollars an hour. You make you keep a hundred dollars an hour of your income and then your self employed, then you're, taking at least ten percent of your income right off the top to pay yourself
first. So here's that here's, the math folks, I always say in our instead of Percentages- could nobody's good at math. For the most part, the really not to whom, one hour day of your income, this exact arrested in gaol. Doing really do in my ear make up, unlike one hour day of your income, is twelve and a half percent of your gross income, and I suddenly, without you, showing me you're following K Plenary now, I bet I can tell you how much of you how much you are currently saving in therefore all one k plan. I said I would be willing to bet money first. What are you using your plan? She said yes, I would be willing to bet money right now: you're saving somewhere between three to six percent of your paycheck in your foreign k plan and she looked. Angel County. How did you know that, unlike has pretty much the average America that people do if they use and foreign K plan, so I said
She saw in her what she was Richard yeah, I'm saving six percent and it ok that's not enough you to be saving one already of your income. You need to go from six to twelve percent. And she says to me in this- is the beauty of having real live conversations. She says, Rachel. I similar six percent of my income there's no way like I've got two kids and single and just no way I could save six percent more. My income about to go talk about the Lahti factor and how we spend small amounts of money? A little things right before, he's told me all this racial she's confessed to me and she's. We buying stuff online like an old things on Instagram that she should too much on Amazon, and I go Let me ask you a question and this is why make of Rome also paid attention. Again, I go. If management came in here right now and told you when everyone else in this room that you, but to have a two choices: a six percent
pick up or you could pass you're, make up here right now and you could leave and you're no longer employed the EP would you do and she looked at me: she's, like I guess I've figured out yeah. You stay right. She goes yeah I'd and I go so here's the thing why? Why do I have to come in and introduce her income by six percent and force? You figure it out. You need to figure it out now and here's the thing I'm guessing this. This woman is thirty. Five, as I said, Durham. I've just le! Please listen to me! Like you you're gonna, look! ten years from now the Ex ten years are gonna, go blot, go buying a blink of an eye and Europe. Forty five year old or fifty year. Old self was in a thank you that you gave yourself, a pay cut costs is not a pay cut. It's a put yourself first You were actually not losing this money. You are buying your financial freedom for later
you have mine your financial security. For now she looked images like ok, and then ass. We walked away the producer show who bought me. She said David. I gotta tell you something she's like our. You're, welcome, recover and of, the increased by foreign cape when two percent, and I just idea or high five Homelike Sumitomo jobs done right cause. I represent look into this person's. She got this little book two days ago. And she increased what she's saving in her phone cable him by two percent and that's a game changer for her. And can you can You explain it just in case people to understand. Why are you suggesting they put it in a foreign k? Verses like a savings account? Oh or so you have to use retirement accounts. There's a couple reasons: why number one when you put money in you to tax deduction so, if you got an employer plan like you talking much earlier, where you were when you, how did it when you had a job or Dave, had a job
We have these plans. The money comes right out of your paycheck. It gets moved the Keith here is a gets moved automatically into retirement account That's huge cassettes, like the second biggest secret building wealth. First, you have to pay or first second, is you dont want use, a budget you want to have the money moved automatically so foreign lands make it it's just a one decision process like you click and now has getting move for you every few, weeks, you don't see happening and I feel like, again. This is a point that I want to make sure that you guys here. Is you don't want to have the money come in to your bank account and then have to make the decision to send it somewhere, because the likelihood of you doing that is pretty slim you want it to, I'm out of that page had before it even hits your account. So that you're not tempted as that data. That's the entire idea and here's the thing Rachel when we look at like what's wrong
created millionaires and people who are financially well off in America People have done this with an ordinary income, what they ve done, is it just simply: they got a job, they sign and they pay, We paid themselves first, one hour day of their income and they did it for two two thirty years they turned round a whole bunch of money. Right here, and we shall doesn't look like the magical compound interest. How you started twenties new, save ten dollars a day. You will multi, millionaire by nearby time you reach sixty five man but the second thing I before just go off for this when the money is in a retirement account, it's not being taxed each year, sorts its task. Sheltered. So that's a huge thing: that's why money grows so much faster in retirement account. The next thing is you can't you have your money and in a bank is in a bank, its earnings, zero or maybe One percent yeah ended that re you'll never deal. Ever grow your money. Like one thing,
That money is your monies either working for you all, it's working for someone else, yes totally, and so you have to get the money to work. For you sell your back to life. Factor. We had this young woman named Zoe Daniels, he's like this twenty seven year millennium and she's working for six years in New York, making more money, but she still. Living paycheck paycheck and she did take him by the hand by some mentor to teach her. These lessons is simple life, lessons that transform life, but you know you got this. I've been I've been like Fan Boeing on you, because on the plane fled out to land, I got to re. Read your success magazine article, which is incredible, and I had your girl stop apologizing book and you have this great quo. Its kills me when I meet women and life living them there
living life out. Control they're, not in the driver's seat, dad closures gave me chills because in the canning at this little book. The Lahti factor, Zoe Daniels is coming to work. She comes, she works downtown in Manhattan, she works and the Freedom Tyler she comes out, the oculists and she seizes lcd screens of it. First chapter the book and honest lcd screen on a way to her office and says, if you don't know where you're going, you might not like where you end up. And she comes up with his escalator up to write it right up to the nine eleven. As all real goes right. Where I live downtown she comes up, then I love Memorial and she's walking by denial of memorial for six years, rushing to her office every day and this morning she stops and she sits down in front of nine hundred and eleven memorial and she asked herself where she going with her life and that's what be
hence his ideals story in this book. And it goes right to what you talk about right like we, we tend to sleep Walker Way through life. And so much of it is being just walking back up to what do you really want for your life. And then rising, like money is just a tool to help you get there.
Hey our next. Women's conference is only a few weeks away and if you have never attended before this is the events that will change your life rise is a three day: women's personal development conference, where we laughed until we pay our pans, and we talk about our things that we cry and we find community and we create the road map to changing our lives or businesses or whatever it is that you're working on. If you want to find out more your curious, what it's all about, I highly recommend you go check out the instagram and see what our community says. You can hear it straight from them. It's at: let's rise, dot, co and, if you're looking for the next one, it's happening in Toronto on March this through the seventh that's Toronto March. This, through the seventh check up all the details at the Hollis cold dot com. If you have been looking for a nudge, if you have been looking for something to kick start change, I promise this is the thing
You tell the story to I mean you told the sorry when I got to meet for the first time, be tell a story and swore smart women, finnish Rich, that you would would, The impetus are one of the impetus for writing. That book was, you are a financial adviser, and so many women would come in your office or come into your dad's office and have no idea what the finances are. They don't know where anything as you had watches a family. Some some family friends who got divorced person and were left basically destitute by force that didn't protect her at all weed. A little bit about that season in your life? Yes, I completed, so I came in the busy nineteen. Ninety three as opponents father daddy, been busy for twenty five years and I sat in meetings with my father and in the first month we had multiple Klein's die and do their work.
Then, because it always amended die first and in the third meeting this woman turned my father and said: no bill told me if anything happens to me that you would take care of me Martin and so I dont understand anything this here. I don't know you ve had already check I know that you're helping figure this all out, walked early on, and my dad said. I totally I will and two things two things me right? Then one was one was so lucky that my husband's, my hope that my dad is an hour. Man. Isn't she bit off she'd been in the office for somebody who was an honest. They could have really taken advantage of this. This, and I just told the story had an event to weeks ago, with my family, I thought my dad was in the room there. I said. Then she left the office, and I said to my dad What's going on in here,
we are setting meters now with three widows? In thirty days and we're teaching these widows how to read their broker statements and know where the rain comes going to come from, and he looked at me to go, see David, your grandmother's, the exception, she's, not the rule, most women, because we're all these older clients- and they were true- I would call them this. A while ago, the Ninetys there too you sure families in the husband had done all the money management, and I said what This is crazy, dad We need to get in front of this issue and I know I don't want to teach a class for women clients that was the original idea, and I had lunch with my mom I told my mom this idea and my mom goes well. David stars told me about her friends are getting wiped out financially from the horse. She said if you teach that class I'll bring all my girlfriends and that ass was ninety ninety four, the Lafayette Park Hotel. We add too, twenty by women, want to come to the first seminar, the room. We were now the room only ever built by the way Rachel
told me not to do this. Everyone delivery that there would be nobody caught that no one would come. There would be no interest that a guy can teach, ass for women in money. Well, I taught that class and the amazing part of the story is two weeks ago I I didn't. I started my book tour with my family and my family's clients. Two weeks ago I was in stages. My sister and there were Two women in the room who inclines for twenty five years, that first seminar TAT, incredible right is not a credible and there's a woman. Emma Leah and she's I was not first class and I'm going crazy thing. Is she was young user twenties in the average person was their fifties? but she was here here she is twenty. Five years later should like she's like I was there in making any for another woman was there. She went on Oprah with me years later, because she put, These things are in place and then she was my example of this automatic millionaire who came on stage with me at Oprah.
So I don't know which has been an amazing twenty five years, but all I just started with me seeing a need andreasen and and and me wanting to go, teach these lessons on. My grandmother had already taught me and I'm asking I've been doing this for twenty five years. I mean it's smart, we finish riches a million copies out and we then rising. We ve had a million women go through seminars over the past few decades, based on that book. So will you talk about the idea of the Lahti factor, which is a you know essentially like? How much are you spending on these little things that you could be using utilizing in a different way? Yeah totally, so I've been teaching. Is it's a metaphor by the way to sneak that out there for second cause a lot of people get super angry these days about her coffee being taken away and I'm not trying to take away your Iphone really area for geopolitical. That's my only luxuries. My coffee and I hate this guy he's telling me take my coffee away like no I'm not that the lot.
Factor is a metaphor designed to get you to actually ask yourself is really true that you can afford to save like Is it really true? Regular people go, I can't say five or ten dollars a day. Is it really true, like Lillian I realized left, CNN and doubts. Here's. The scene at headquarters is massive Starbucks and there were fifty five people online. For looks like you just mobbed, and I or to Rachel most of those people are not saving more than two or three percent for K plants. Voters, Turning to three hundred dollars a month at Starbucks, many of the lot better go back? It's actually about the coffee. It could be. I don't know what you're spending money on. What I know is that when I started teaching the Lahti factor in in live classes what a realises people started getting it, don't you know what I probably do other money. It's like my grandmother, sprang back her lunch like.
Maybe it's giving up one beer at the end of the day me B is moving up Jim membership that you dont use. Maybe it's something You re, like maybe your family's got three cars, but you need to Maybe you don't need you Mars, you need one and when you come it's coming up with. I just listen erase all supply gas, and you know what I'm like grim arose back, we're still poor living pigeon. Paycheck and we need to fix this enormous makes this we need real and go. What is our lot? If, after, where are we spending money? What can we do to find at least ten dollars a day and I'll give you why that such as Civic example is that if your saving right now tender, Today's rehearse dollars a month is thirty six hours a year and that's nearly Fifty thousand over a decade and that's a lot of money to start there like you just ran a half marathon, yeah, you don't go around a half marathon day, one right you.
You. You have to build up to a half marathon So a lot of the Lahti factor is about You have enough aha moment that you got the money and then build. Your financial muscle, an irony. And covered starts with a dollar a day like right, go back to Grandma Bach. Can you save a dollar day? Can you say five dollars The average american right now average, like six out of ten Americans, cannot get they're here a thousand dollars in case of an emergency. Well, That's where you had statistics when we were in Puerto Rico. You were talking about Remember when our sitting at the table- and you are- you- are giving us an insight into women and money because I remember taking notes on the stage of that that was one of on the average American can't get their hands on a thousand dollars. If there's an emergency kid gets her, you know lose your job. You don't have that Jim
the other, once you are telling us well, I don't think I've got another Attica finished. What I've seen before about you rascal the women statistics. So, like eight ten women today in American live paycheck. Paycheck Still, seven out of ten men do too, so it's not that much better for men, but its worst for women. The thing that women need to know like there's a part of the story which is very much about women's financial power because of my grandmother, which is that your who you're married. Do you need me in jobs and money? I don't care how, financial. Successful you are like you can have a business manager or financial visor used will need to know, is going off the money, and women is more important than men and the reason is you live longer. And because you live longer the family, if you're married, the family tends to go through the families, wealth jury. The process of the husband get sick and aid. Percent of men who die, he presented the die die married
So men often will never actually live through the consequences of poor financial planning. Women aged will seriously live through the consequences, because eighty percent of women die widowed. And when you look at this day, the poverty stricken elderly, which are like seventy five percent women they were poverty stricken before their husband died. And then look I'll go one step further on this Rachel, the when I wrote More women, finnish, rich original in the act age widowhood was fifty six wow. Now it's fifty seven. That's crazy is raised why you know there are people who are listening right now who have children and their married and there if you're an average american living page paycheck, you don't really have a big financial cushion right, and so
I'm not here to sell anything. I'm here is to teach a concept of, but for some people taking the lot fuck money and simply buying a charm insurance policy? you gotta get a half annoying our term insurance policy for twenty or thirty or forty or fifty dollars a month, and it could protect your fan I'm gonna go man don't go by her roses. Ladies We asked for rose for Valentine's day, four million dollar term policy. I have your guy furs depends on state arose that will be dead. Seventy two hours later, you just say, forget the roses. Note the most romantic thing you can do for me baby sweetheart. I love you. I like a million our term policy on your liar yeah, implicit Ladys. Let people laugh, but I read. I hate this vacuum. What about saving Rachel people come back to me and said you know. I heard you loud and clear, and I did that Catherine Ballsy, who has
yeah I didn't leave my home in my kids are still able to school and the seller. The steps real. It's like this is like a real staff and there's not it's not complicated. It should be taught in school. Not so I'm just trying to make it simple for people, so the jacket the edge, nation that you didn't get in school. What do you think are? Am you know? I talk a lot about the excuses that hold us back and you talk about some. The miss myths that people believe in comes to finance, but what do you think are of some of them? the things that are holding people back of it didn't, grow up where I'll give you my example group. Without money really strapped my my parents were always really struggling in that area, and so I grew up and started working in my business started to make money. It was very, the overwhelming for me, because I had never managed that much
before, and so I dealt with it by just like not looking at it like Here's the thing over here the balance sheet. There's the piano, I'm in a pretend that I'm aware, but I'm not really aware- and I know that there are people listening to this right Now- probably a good priority. Who does her bidding them from Don't want to look at how much debt there actually is like glitter. What are those things you think people are holding onto that are really prohibiting them from getting control in this area, such a good cause, Since there are so many things I mean, I can give you a whole bunch of them in the first thing is I think that if, if you weren't brought up with my or you were in a family like most that here, you know, rambler teaches stuff is really easy to say yourself. Well, I just don't how to do the stuff like I'm, not, I'm not go with money. I'm not good at this stuff And so, when you tell yourself you're not good at something, then have behaviour their continued.
Enforces, you're, not get it So is the way to rationalize one, not good at this soul, which bitch is not for me. Right and I was even then there are things that people says when money is not important to me, which There's like I go you're, either as oxygen untold gone right like gentlemen. Take it's just not true. Like there's a love you, you need a level of money to be. Ok, it's not about having a million dollars, but You need a level of money to be okay and the. Ultimately, you need a level money to be really free to leave your life's purpose, and talk about the second, but I think people tell themselves there not go with it I will not good with math forcefully dont, don't need to begin with math like basic mouth. You know that saving ten cents out of a dollar is ten percent You know no wealthy, rightly like. If you know that if you make a dollar you shouldn't spent dollar tempt you you now know enough to be wealthy.
If you like in the book, if you say ten dollars a day Starting in Europe at the age of twenty five, which most people don't ten dollars a day, compounded in a decent way. Return like putting it in the stock market. Having an index fund, a ten percent, which is what the markets average since nineteen twenty six. What most people don't know is that ten dollars a day you could have two million dollars by the time you're sixty five started at twenty five people look at these charts. They always go prior notice, twenty five people today in the message boards is one woman was fifty three and she was like. I just read this. Look. I've been like crying all day long, because I I I didn't get this book at twenty five and I dont know now. If any this stuff can work for me in and I'm just super sound about what I haven't done and People started piling into the message board sang the result. He spoke saying
it's. Ok, I was there to bomb was like I was sixty and sixty five now, like I read David's book feel fifteen years ago and had nothing no amount of debt? Now, on my home now I've got money in savings now and retiring like you just need. Start Really I ever you all today, you just need to start and and you need to be ok with you. Dont need know what all this very moment to get started. I got love mother. You talk about Rachel into mind, that's your friends like yeah, I think, even one, because we get older, we're so afraid to learn something new YAP it's ok to ask for help. While it's what is it, that thing that everybody can I get this lot to and in any area people like why don't know how or I'm not gonna like did you know how to drive a car, no you didn't know how to drive a car you learnt, because
the car was the tool they got you from where you are too, where you wanted to go, and this is the same exact thing. Any thing can be learnt. Anything is something that you can go out. You can get this book as an example you listen upon cast, you can go at Youtube videos, you can arm yourself with knowledge. It's like stop saying that you don't know because information is out there. So you not knowing is a choice. I give you, listening to this podcast right now, you're like man, that's hit me like that's resonating. I could find ten bucks today. I know that I could well now you have some knowledge not doing anything about it, that it's gonna- be: u choosing to stay in this place, men and so true, and let me tell you something giving one more thing on top of this, so the other, the other thing that people tell themselves. I did this to you by the way. When I was my Dantes, I can't or save money. Now, I'm not making enough once
make more then I'll, do it her the problem with that. Is it's not true. When we make more money. We just spend more money, yes way. Ok hold out before you leave this. Can we do I've been thinking about this so much lately is what is the conversation for someone? I know this isn't exactly what the book is about, but I also know you have this answer. If someone has found himself with a promotion with a new job that pays them more than the old job. Did they come in to a bit more money What I'm seeing play out and members of my community and friends or whatever, is that big, to a new level financially and they immediately our spending at that level. Verses like you get to a new level and you
still living. Oh my god. That's all I'm saying what I'd like you to think of how do I explained that? Well, I know you're thinking right now. I think now without principle under the jet, but everybody does it's right, so, let's just like I'll, just use myself as an example, but then we can talk about like other, like as it grows right. It's like when I got a car truly believed. If I can make fifty thousand dollars a year, I would be rich because I had no yeah and I made fifteen- still broke, so I thought well. If I can make seventy five, that's how much I need then I'll be able to save and invest I made seventy five and I was still broke their main hundred because I just I just need to make a hundred grand two hundred thousand dollars a year. I now had at least Jaguar convertible, a rattle apartment, a Rolex watch and inward His ordinary couple into my office named Germans, who Macintyre, which is what the one of my biggest books is book, called the automatic millionaires based on this too.
The ordinary couple coming into my office she's petition he's got, total like mid level, corporate job is never made more than fifty five thousand dollars a year comes into my arms, the brown paper bag and when I play documents, turn turns out, multimillionaires Alec nearly two million dollars. His homeland, offering clearly has no Dat scope. White house you do this. And he the one that like like laughed, is a David. I just did the stuff you talked about in your class. We just we paid or first we save money automatically. We blue or means we didn't spend the money as we made more and he just walked me through this and music. Oh, my god, I have changed my life. Yeah. What what happens is where we grow or income. We also often. Are, our network of friends. Changes even sometimes is gradually
so we were in oak. The quota cook, keeping up the joneses. We end up being around people who have nicer cars and nicer clothes and a bigger house, and we just weak upon this treadmill together. And the thing is its treadmill that leads to still constantly being stressed out and honour in arrests, and the weird thing it can happen at any level of income like I know, people who make a lot of money, but when pull behind the curtain. You also find out that they need to keep making a lot of money overhead is huge and you ve grown their lifestyle. You grow your lifestyle, always above your income level, yeah and the problem is special when you're self employed. It's actually problem when you're on your way of job and then I'll just help you job- and you start to make good money, if you keep me spending what you make, the moment? You lose your job if you're, not saving money, now you're in real trouble,
yes fertile harder to replace a job. The page you love, so that's it really importing. Unlike what, if I just talk but this scene and ask if you could just give raises for ten years? If you could just somehow not take those raised for the first ten years and and take that extra money, keep your life to all the same and sock that money away. Many decades. You'd have financial freedom that you just can't even begin to fathom, I think it like. In my own life, how this how this manifests like, I think that anyone listening can understand a bit of what the less you know. Eighty months of my life have been like and I will say when the success of the book went so crazy and everything with the business. What so crazy? I did one extravagant thing I did one very extravagant thing which, about my dream car night and I and I and I paid for
cash like a baller like I'm rolling in and I'm cuz, that we don't have debt, and so it was like okay. I want this thing. I've always wanted it, I'm going to go out and buy my dream car and it's done other than that we live in acts in life that we lived before any of this happened still shop target. Still it still wearing my favorite, like target brand lagging still and part. It just, I think that's maybe just who that's kind of our personality in general are not really flashy people, we don't I'm not in someone else's wearing a rolex. Unlike iconic, I mean alleged like it's not my thing, but I think about that all the time, because I see people who are coming into a new level and there immediately I mean probably before they even got to that level they were over extended. But now But there are now that there are two new level is something else entirely, and so I just keep thinking about them, so grateful you're. Here you can speak too. It is like at the
berry lease. Maybe you don't start spinning at that level to get to the next one, but it it's not I don't know I just I keep seeing that play out in so many people around me like now, you're doing it right. I welcome in this so wrong. If it is you wanna, take your income and converted get some coffee, but like is not you want. Your income goes into an investment that and pays you money. You can use the money from the investments. Are you the money and you bypass real, say, like you just use built beauty, but an office building right or some for Europe, a guess now a word in any airport, congratulations Also, I am also again go there. Just want to say is as important as also painting would pay you income terrestrial life yet, and so, if you got the acid and used or spend part of the income from the asset, well, that's that's different. Then you spent the money would pay you when you the rest. Your life
and so, if you got the acid and used or spend part of the income from the asset. Well, that's that's different. There, you spent the money that could have bought you. The asset some examples. Yes, absolutely absolutely. I always tell people like you know the first ten twenty years you wanna be building up assets that pay you money wall, you sleep, hundred like start off with, like one home, that's rental property. A mutual funds paid dividends, but My grandma used always called the and the golden Goose, and she just said, like, don't ever color golden goose. You can use some of the eggs. The golden gives. You leave the golden goose alone, four is much better for it, and there they got yields. I want to go back to eat to New York, unlike what I'm losing track. Is your traffic so much longer martini or couple days and I'm gonna go speak to my entrepreneurs, group called EU resources. This is why the largest entrepreneur, groups and think of the world,
and I was in this organization for seventeen years and I'll come back and basically speak to my group and you In so many entrepreneurs to really poor job with the finance is because what happens is the entrepreneur is hoping some data have a big pay out of their business and a bill? business and then one of these days ago sell that business. It's gonna be doing I'm a plan and the for so many entrepreneurs. Is they dont fund a retirement account they don't you like use even like a separate or foreign k plan. They dont by real estate, and they dont build assets like they had an account and tell them. You know, will write all your expenses off at the end of the year gray, you won't pay taxes. I was let's not great at all, because at the end of the year, you're still broke Oh you know you mean, entrepreneurs are gone along wrong or business hiring more employees grown a bit higher, more employees growing their expenses, and then they caught him. He changes
and I had a lot of friends and last recession go from being really well off to dawn, like decimated, financially because they didn't have even a years worth of expenses set aside, I am telling you Rachel you just to three years now we will be reconnecting on things like economies headed, alas, been years yet boom cycle. Yes, if I've just cause- I don't know I'd like the level of fear. I don't know the level of of listeners on this one. I want you to hear that again. We have had- had an incredible economy for eleven years, a loving it here's the stock market. It happening your phone k plan the stock market. With reinvested dividends has gone up over four hundred percent. You, could have been in Essen SP five hundred following the vanguard, and you made fifteen percent annually a year,
the lowest unemployment in this country in fifty years, we're sitting. This is new year's Eve Performance celebration of Black adjust its bins. So good and they means by which I mean that I can stay so good for so long. It just shows just how cycles work and inhuman. If you just study the cycles of presidential terms, rightly forget whose office right now it doesn't want to gain political. First time presents our almost always reelected for a second term, first term present cycles. The market economy does well stay strong, the third year in the fourth year, typically because the person wants to be re, elected and lots of or down in an effort to keep the economy got, which was examined by the way until a week ago, with his old China, Tralee situation market still close to an all time high and if gifts, our president is real
maybe you should have another really good here. Usually one of the second the term processes- is- is good and think the slowdown in years to and third by three. Everybody's, tired of our second term, president, things change interesting if you take a combination of that and just the global economy in its time only reasonable to expect things to slow down at some point in the next two to three years, and I will I'll just tell you with all my entrepreneur. Friends runs election they're gonna, hear on Monday night is guys. I'm telling you right now. He's gonna rain tomorrow. I'm telling you now is the time to putting money aside for the rainy day, because we're going is good. People stop think, that the Rainy day could ever come again. Real. He also guide, you need me
I feel like I. I could literally talk to you about this and have once on a bus and it go for so long, but I want to make sure we don't miss this one thing which has nothing to do with finance and everything to do with your heart. One of the things that you say had power and porter ego at this mastermind your. This thing, so so, just to give everyone like a visual of what happened, we were invited by mutual friend goes mastermind with. I know what you say like twenty people, maybe you could to bring to pressure to bear? No, you ve talked about how to park ass. How do you know it's texting of an hour ago, like I told them, I'm Goin bridges, bod ghastly, I just why just don't want to be old name, which I think is yes, it was so we are vital to this thing. We're sit around the table and adjust these how're houses like people who don't cry He does this as people who are personalities like every every kind of person sitting at the table and you got You go around and basically give like kind of your best advice.
So the thing that you had really learned in the last, however many years and what was so great was it was such a diverse mix. Of wisdom- you're like at what you said at that table. Will with me for the rest, I don't even know what it was. I just like hit me in my guides and maybe Because I was tired and maybe it's because of the year that I had had, but you said this thing, like we ve all heard, but for some reason, like oh your wisdom on this, you are just like why You only had three years left to live If you only had three years left, would you be proud of the work that you are living your life right now. If you only had like what would you do differently, can you can you sort of take, listen an end to what he shouted the table that day, because that now me off alike?
access I was so powerful for me. You bad so there's two parts to this story. I guess and, and the first part the very back of the Lahti factor, the the overarching theme of this book is actually not about the money. It's about realising that you need to take a risk to go for your dreams in your purpose in life. And you need to listen to your soul that less? and also came from my grandma rose Box, so my grandmother, eighty six have been, probably healthy. Who is my life, mentor she had a stroke. And in eighty six we broader nursing care facility. I was finishing: smart women finish the book. The book was dedicated and I asked her in this hospital on those nursing care facility, your grandmother's books done like, but you is there any life? Lass life lessons. You want to share with men
You set out our really ethical, fully touch you everything you need to know: you're gonna beat you can do amazing and I asked The question which was does teaching avenue regrets in life and she said no and then I'm like right around the next year came like how did you sleep and she's like tat While I was up all night long thinking about my life, regrets oh god, no and then she went through them with me, and so she went back all the way to being a teenager and she walked only through her five regrets in life and when she got Done she said you know David's, not about my regrets. She sits about the lesson in my regrets She said the lesson in my regrets that everyone- those regrets. I came to a fork in the road. I had to make a decision. Do I go down the road that my heart wanted to go down the one where the risk was, but I thought that that's where the real dream would beam or did I take the safer
And she said it every time the fork in the road there was like this little girl, the full rose. I want to go out and play, I call on rose, let's go this way, and she said I didn't listen to her. I listen to the bigger Alison's Big rose. Alison, the one who said no, we shouldn't do that. We should take that risk. We know- and she said and so I see you're, eighty six and she's up to me, she's like and I'm gonna die and I'm not gonna leave this bed. And I was a telegram: will Europe be fine, you're, better yeah? She grabbed my arm and she said David. I need you to listen to me, you're in your twenty she's, you're so young you dont, need Eighty six and have regrets like this she's, like I'm telling you- and you should just hear me loud and clear- your comedies forks in the road and you're going to have a little boy inside of you just like I want to go out and play and then you're going to have big boy she's like snatches, you write like the big bore. The big girl could be like your mom and dad or society
Eddie or your friends all the reasons why we think we can't go do something like what do you mean, Rachel, you wanna, go from doing cookbooks to creating a self help you mean who are you who do you think you don't want to go, create clothing line for pvc? You know like rather like there's all people telling you why you can't do something, and she said to me just don't listen. That boys listened to the young person was the low points out of you. And so I drove back to me Office broke down crying in my office, and I put missed myself that within three years I would If my had this amazing job and Morgan Stanley, but it wasn't my dream, I do be a financial visor anymore. I want to go out and teach I wanted to go. Two million women to be smarter with money, so we can protect themselves and teach the kids and I told myself sitting in a garage crying for no, my rearview mirror that within three years I would go for my dreams, and I would leave this firm and I would go do this and I picked up.
But you picked up a move from allay too asked him. I picked up and move from San Francisco, where I had a completely dialed in set life with finance, security to move to New York on a wing in a prayer to dry, teach people about money- and you note that part of the story, because anyone who is listening, you listen to the little girl, oh boy, Saudi, where there are things that you want to do right now that you are not doing or you're gonna. I'm too old road next year, too and you need to listen to that boys so that you don't ever grass and I think one the ways you then listen to that voice. Clearer, is stop thinking. You're gonna live forever, and what I said to the group. Import Rico cause, I'm fifty two There are a lot of you, the group that were in their theories in your forties. I said you guys
everybody talks about his living forever. Regional live with exponential technology to be a hundred or hundred ten hundred twenty go. Let me tell you something I go on. The country must be to love, our clients are sixty five. Seventy five and eighty, the quality of life is totally different than the call you left right now. What I said that group it these next ten years, your life- and this is true- quivered before any based listing, then. Ten years. Your life are gonna, be the hell, this year's your life. He viewed use had ten years left to live. You could leave these ten years because he's gonna go by the board next ten years of your life you're going to be your neck seniors. You ve ever been you have, or energy now than you ever have If you just had ten years left to live, you could leave these ten years causes gonna go by the blink of an eye. You could live. Next ten years, having gone your dreams and maybe got them or just be ten years older, and now what I said to the Group was ten years, is a really good time frame
man when you want to live super intentionally, you take those ten years, new shrink them down to thirty six months and years, Think of you. We have three years left to live and you ask yourself a question. You got three years after starting to day, well now. What do you want to do with your life. Now, who do you want to spend time with now. What do you want to spend time worrying about which is almost nothing all like all the stuff that we spent I'm worried about. You have, through three six months, left to live. You're, not gonna worry about those things, and usually takes actually being told by the doctor that you're dying to live this way Unless yeah you, the game of Wolf? I had three months left to live. I wanna go! Do this and example like I'm moving in seventy days to Florence, ITALY, with my family,
yeah, you, dear, you, are banned in all my son's gonna be a sophomore, and I said to myself: you know this my last chance to take my kid to go live abroad. I've got one little tiny window here before it goes to college, I'm a pickup our family, tat actually move them somewhere to Europe, which we chose floors to go live this dream life for a year and it takes lot by the way to pull this off and as as its because, an eye I am leaving an intentional life with a desire to live rich, the underlying theme of Lahti factor is you: don't have to be rich to leverage and your richer than you think yeah looking about your life in terms, what do you really want? He spending more time for that, then focusing on what you don't want, Why are stable back? You are so incredible. I know everybody listening has had their hearts, let on fire, I'm I'm so grateful to get to call you friend and ours
when my real life friends get to come on and talk to listener, so they get to experience some of that wisdom to the book you guys The new book is called the latte factor. The Gee thing that started at it all is smart women, finnish wretch. You need to go by one or both right now, and absorb this wisdom. I am so grateful brother, so attack on you. I know unaware. Gonna put his pocket ourselves, but if they, if you kid at next week's, come on over your website and the Lahti factor, dot com because we ve got? We kept our bonuses open like an hour you devices with your book. Open. Silberman got five hundred dollars for the bonuses on the logic, including a class called start late, finnish rich and oh, come on over our website, less no! You came for Rachel
how did I said hello? I am I, what I'm going back to Port Rico, taken my wife back to the hotel, the energy break up on my god, ass stout dreamy rider by present, send us deal. Thank you so much robbing shows we of course, of course, ladies and gentlemen, did I mentioned. I have a book coming out. Here's the thing: it's called get out of your own way. Sceptics guide to growth and fulfilment and we're the priest cell window of windows. I am were excited about having written a book for both men and women, about the twenty lies that I once believed that were keeping me in my own way. I have written this the perspective of some one. That is totally differ. From Rachel Hollis, even if the format is somewhat similar to grow wash your face, I wrote it from the respect for someone. Who's been skeptical of tools like this book or even the park you listening to for ever and ever its through
at lands that I'm talking about the ways that I was getting in my own way and I think in covering the truth behind those lies not only Help me get out of my own way. It I'll help you get out of Europe's. There are two ways I want to say. Thank you for preparing this book. I have created an e course unequal. Yes and Eco. Sixty minutes each course called finding your why it's a fantastic resource it's available, absolutely for free right now for having pure of the book if you go to get out of your own way, the book that calm right now and follow the problems not only we get equal ass, you can hear the first thirty minutes of the book. And get out of your way comes out March? Tenth, I'm super super excited about it, get out of your own way. The book dot com hit that link follow the problems and I appreciate your support.
Transcript generated on 2020-02-13.