Wouldn’t it be great if we never made financial mistakes? I mean, can you imagine how far you might be ahead, How To Handle Money. If you never made a mistake in the game of money? I don’t know how realistic that is but with the right advice it can help and today on Limitless TV. I’m going to share with you how to avoid the biggest financial mistake. I’ve ever seen someone make. Hands down, the biggest money mistakes that I’ve ever seen got taught to me. I had a chance to be a fly on the wall. How people did their finances. This happened when I was a student at Brigham Young University and I had a full-time job. I was going to school full-time and then this full-time job. I was on the phone doing telemarketing and that was my job. My job was to be selling something, but it also involved interviewing people. I had a chance to interview people in their 20’s, 30’s, 40’s, 50’s, 60’s, 70’s, thousands of people and I started seeing a pattern.
How To Handle Money
I want to share that pattern with you right now that took me years to accumulate. When we’re in our 20’s, we’re pretty carefree. We don’t have a lot of money, we’re busy going to college, seeking greater education, getting a piece of paper that says we’re smart. We’re not thinking about financially getting ahead when we should be. Then in our 30’s we’re graduated from college. We’re now ready for big career moves and those big careers that are no longer working at Dairy Queen and McDonald’s. We now got a job that’s paying 30 a year, 60,000 year, 100,000 a year and what we do is, we now make one of the first big mistakes we step into a pile of liabilities: cars, shiny things, trips, big houses.
We’re creating a substantial lifestyle on the new money that we have because we can buy more, our credit will do more. In our 40’s, we’re busy now raising children, starting families, our lives are hyper busy. I’m focusing on my career. By the time I get into my 50’s, I’m focusing on becoming an empty-nester. I’ve got children now leaving the home and all the sudden. I start realizing, I’ve been in the work force for a few decades and my retirement is not what I need it to be.
So now panic is how I feel financially. By the time I get into my 60’s, I start becoming less employable. You start noticing that even though, we’re supposed to be protected and our jobs, that there’s a lot of unfair things that happen to older people that are starting to slow down, make transitions. Now panic is how we’re feeling about our finances because our retirement isn’t what it needs to be. We were so busy, we’re still paying off the same ding big house and the shiny cars. We’ve grown accustomed to them in our lifestyle. And then we get into our 70’s, and by then you’ve given up and when you give up financially on your dreams, that’s you become the worst.
Crotchety crusty barnacles because you had hopes and dreams, you followed society’s gameplan, it did not work. You want to know what the biggest financial mistakes are? I’m about to reveal the number one biggest mistake that has the chance to determine whether you become a millionaire or behind the 8-ball, forty years later.
So here’s the difference between one choice that can catapult into a million dollars or never getting ahead of the proverbial 8-ball. How do you treat your number one liability? Now think about it for a second. A car is not the biggest thing you’re ever gonna buy, a vacation is not the biggest thing you’re ever gonna buy, a kid might be the most expensive thing you ever buy. You either treat your home like a home or a house a home is something for you to live in, a house is an investment and you want it to be both. Why? Because your biggest liability can hurt you. It’s your biggest monthly payment. Yeah, you might have a thousand or a fifteen hundred or two thousand dollar payment. You got to get that working for you.
Now while you’re living in it, it’ll never truly be an investment unless you buy it with some equity that you can put to use. For example, you might be watching this saying, “You know, Chris, I’d love to pay my house off”. You know what let me show you how to do it faster than a 15-year mortgage and accelerated mortgage or just throwing extra money at a bad investment, instead what you do is you extract the equity, enough to put 20% down on another house. Let that property and the one that it buys ultimately produce enough profit that you can come back and pay off your home. Well, I’ve seen people use primary residences that are bought with equity and I’ve seen them leverage them to make a million dollars. I’ve also seen other people that don’t know how to control that number one liability and 30 years later, they refinanced it and they’re still sitting in the same of finance problem, where it’s a liability that’s difficult to control.