Episode 2
From Making Money to Building Wealth
Introduction:
- Hosted by Dr. TMac, this episode focuses on helping women entrepreneurs and professionals transition from just making money to building sustainable, generational wealth.
- Overview of providing tools, mindset, and knowledge for effective money management and multiplication.
Key Topics:
- Difference Between Making Money and Building Wealth: Understanding the fundamental differences and why building wealth matters.
- Client Case Study - 'Kate': A success story about a client who quickly achieved significant financial gains but lacked wealth-building knowledge.
- Wealth-Building Principles:
1. Start Saving and Investing Early: Emphasizing the importance of beginning your investment journey as soon as possible, regardless of the amount.
2. Setting Financial Goals: The critical role of clear, defined goals in wealth building.
3. Budgeting and Tracking Expenses: Insights into managing expenses effectively for better financial control.
4. Making Smart Financial Decisions: The necessity of choosing the right financial products and being cautious with credit.
5. Diversifying Investments: Advice on focusing on one investment avenue before diversifying.
6. Long-term Perspective in Wealth Building: Highlighting the importance of patience, discipline, and perseverance in building wealth.
Cultural Insights:
- Discussion on societal and familial influences on our approach to money and wealth.
- Analysis of the 'hustle hard' mentality versus building true wealth.
Defining True Wealth:
- Dr. TMac’s perspective on what constitutes real wealth and an invitation for listeners to share their definitions.
Conclusion:
- Encouragement to understand and apply these principles for genuine wealth creation.
- Invitation to visit richfriendsbook.com for further insights and to acquire Dr. TMac's book, "We Should All Be Rich Friends."
Endnotes:
- A reminder from Dr. TMac that achieving holistic success and wealth is possible for everyone.
Transcript
Why do we get so caught up in
the making money part of it
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:all and not wealth building?
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:Um,
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:And I'll see you
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:Hey, rich friends, it's Dr.
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:TeMac here and welcome to another
episode of the rich friends show where
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:we help women entrepreneurs and women
professionals achieve financial freedom
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:and build real wealth, real generational
wealth by providing the tools, mindset,
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:and knowledge to make, manage, and
multiply your money with confidence.
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:I'm going to jump right into
today's episode and topic.
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:And that is going from making
money to building wealth.
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:So the goal of today is to talk
about the difference in making
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:money versus building wealth.
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:And I'm going to talk about One of my
previous clients, and she is a rockstar
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:client, I'm going to call her Kate.
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:When Kate came into my mentorship,
within 30 days, she'd already
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:had her first six figure week.
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:And then she'd had several
six figure weeks after, or
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:six figure months after that.
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:But the thing about Kate was,
she didn't quite understand the
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:principles of building wealth.
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:And I'm going to talk about those
principles go into those principles.
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:1 of them is you have to start
saving and investing early.
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:Well, some people say,
well, how early is early?
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:You know, I may be in my
30s and I haven't started.
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:We'll start today.
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:Start with whatever you have.
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:You have to start setting aside
some money so that you can invest.
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:You have to save in order to invest.
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:So start today.
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:If it's, if you make 500 a week, take
50 of those dollars and put it back,
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:save 50 every single week, and then
you can start investing from that.
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:Start small, don't worry about,
oh, I don't have 100, to invest.
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:Just start somewhere.
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:Okay, so that's the first principle.
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:Start saving and investing early.
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:Well, see, Kate didn't
have any investments.
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:She understood how to make money and how
to keep making the money, but she didn't
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:know how to manage it and multiply it so
that the money will start working for her.
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:So the second principle I want to talk
about is setting your financial goals.
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:This may not be sexy.
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:A lot of people don't want to talk about,
Setting goals and, you know, creating
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:a budget and doing things like that.
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:But this is like really the,
these are principles and this
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:is the essence of wealth, right?
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:So in order to build wealth, you
have to have a clear understanding
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:of what you're working towards.
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:Like it can't be, I'm working,
I'm in between clients, I'm making
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:money, , from launch to launch,
but It has to be something where
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:you're, you're doing what you love.
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:You're making a lot of money doing
it, but you're also creating wealth
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:by investing the money into different
instruments and different avenues to where
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:your money will start working for you.
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:So you have to set those goals.
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:If that's, I want to.
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:, By my 1st investment property, uh,
within a year, then that's a goal
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:and that's an achievable goal.
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:But you, if you don't have that, then
you're going to keep going from client to
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:client launch to launch and you're never
you're going to be on a hamster wheel.
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:You're never going to
be able to create that.
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:Well.
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:And then the next principle, again,
budgeting and tracking your expenses.
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:It's not hard to track your expenses.
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:Like, literally, write down, pencil,
paper, write down every single thing
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:that you spend your money on, everything.
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:And then write down your income.
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:It's, it's all a matter of, this is what's
coming in, this is what's going out.
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:And if you have more
month, then you have money.
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:Then there's a problem, then you have
to learn how to budget and how to
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:say, okay, this, this can't happen.
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:Crack your expenses.
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:Why am I spending this on that?
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:You know, I love I'm not gonna
say I love Starbucks, but no.
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:I love a good tea.
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:Let's say that, but instead of me
going to Starbucks to buy tea every
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:day, I have oodles and oodles of tea.
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:Like I have tea everywhere where
you can buy a box of tea for like
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:three or four dollars, five dollars
max, and this is good quality tea.
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:So, versus going and buying one
cup of tea from Starbucks and Hey,
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:that's a lot that adds up to a lot.
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:So just, just tracking your expense
expenses is very important, important.
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:And then another principle is
making smart financial decisions.
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:You have to make smart financial decisions
because that's a part of building wealth.
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:It's not about saving and investing.
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:Only, but it's also about making
smart financial decisions, like
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:choosing the right financial products,
such as, um, like, your investment
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:accounts loans, like, making sure
that your loans are solid and you're
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:not spending this astronomical amount
of interest because that's that's.
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:Cutting into the money that you can
use to invest also credit cards.
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:I'm big on credit cards.
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:I love, love, love credit cards.
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:But one thing I want to say is you must
pay these cards off every single month
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:and you should always go for the low
interest, zero interest to low interest.
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:I love using Amex cards because I have
that 0 percent interest and I utilize
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:these , promotions and things like that.
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:So.
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:Shop around, make great financial
decisions because you got to
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:understand these instruments
well, before you invest in them.
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:And also, , it helps you keep
track of your expenses when, you
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:know, exactly what you're doing,
making those financial decisions.
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:Another thing is another principle is.
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:, diversifying your investments.
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:I know that a lot of people get
really, really confused when we talk
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:about diversifying our investments.
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:A lot of people say, well, I
don't know a lot about stocks.
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:I don't know a lot about
the different asset classes.
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:I don't know a lot about real estate.
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:Here's what I'm going to say to you,
rich friend, I'm going to say, jump in
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:one thing, learn that one thing before
you start diversifying your investment.
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:I do not know a lot about stocks.
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:But I started investing a little
bit into the stock market after I
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:solidified my real estate portfolio.
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:So that's something that, you know, that
just happens to be my thing, real estate.
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:Some people buy businesses, that's all
they do is buy and sell businesses, you
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:know , purchase these types of assets.
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:Whatever it is that you want to
do, just focus on that one thing.
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:My rich friends know what I
love to say, 10 and 2, 10 and 2.
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:Uh, keep your, keep your hands
on 10 and 2, but it is true.
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:Like focus, put both hands on the
steering wheel, look straight ahead.
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:Don't look to the left.
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:Don't look to the right and just.
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:Put your head down and understand
your vehicle, the investment
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:vehicle that you've chosen
before you start diversifying.
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:, and then lastly, I want to talk
about this principle, and that is
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:having a long term perspective.
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:Building wealth is not
a get rich quick scheme.
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:And for those of you who've been
following me, You may know a little
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:bit about, , a friend of mine.
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:She was a really, really good friend.
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:I consider her a really,
really good friend and she
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:literally burned so many people.
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:, With different, different
schemes that she had.
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:One was a, I didn't consider it a
scheme because it was a long-term play.
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:It was like a five year investment.
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:But then she has some other schemes
in there where, where one was, um,
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:you give her, let's just say you give
her a thousand dollars and she'll
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:give you back $3,000 in 30 days.
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:Like where do they do that?
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:Like nowhere and she burned a lot
of people that I know personally by
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:using those get rich quick schemes.
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:, you have to be aware of that.
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:Rather than, you know, doing that,
you should go think about your
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:long term process that requires.
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:Patience, discipline.
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:And perseverance.
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:Like, I don't know any person who
has built wealth who did not practice
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:patience, discipline, and perseverance.
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:So listen, if it sounds too good
to be true, nine times out of
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:10, it is too good to be true.
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:So just want you to know that
wealth creation is a process
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:of compounding over time.
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:Where your money will work for you
rather than you work to actively earn it.
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:I love to use this
example with my clients.
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:You go, You learn how to make a whole
lot of money doing what you love in a
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:little bit of time, and then you take
that money and you go and invest it.
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:My particular, my favorite
strategy is real estate.
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:Go invest it in real estate,
but you have to understand that.
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:So I wanted to bring up another
topic, and that is, like, where
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:did this behavior come from?
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:Like, where in our culture or our
society did this behavior come
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:from where you just want to make
money, make money, make money, make
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:money and not really build wealth?
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:Well, I'd like to say that a
lot of it comes from family.
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:You know, a lot of us were raised,
, You know, by our parents telling us
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:that money doesn't grow on trees.
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:We're not rich.
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:Don't ask for anything.
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:You go in the store, don't touch
anything because if you break it,
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:I can't afford it kind of thing.
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:And, , this whole, you gotta go
out here and you have to live from
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:paycheck to paycheck like that,
that a lot of that came from family.
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:But then also in today's time, we
have this social media world where
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:people just want to go out here and
make money, make money, make money.
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:And then they go rent these nice
Airbnbs and rent nice cars and nice
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:boats, and then make you think that
they are wealthy, but in all actuality,
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:they are not, they're hustling.
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:And they want you to buy into the
lifestyle that they're showing you
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:on social media so that they can.
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:Keep up and continue that lifestyle,
but not really build wealth.
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:And 1 thing that I learned
and I saw was that.
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:After the cobit era, and after the
PPP era, things started shaking out.
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:, Latter part of 2022, but for sure,
all of:
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:entrepreneurs were struggling in that
particular area where they were making
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:all this money when the, when we were
living in this artificial market.
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:Right?
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:So.
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:That is something that.
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:You know, I talked to my husband about
it one day and he was like, well,
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:the one thing that I'm glad that you
did during the time of feast was that
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:you were continuing to build your
real estate portfolio, , with your
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:money instead of spending the money
on lavish vacations, blah, blah,
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:blah, where you can't get this, you
know, you can't get this money back.
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:There's nothing wrong with
vacations moving away.
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:So don't come after me.
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:There is nothing wrong with vacations.
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:However, I must say that you
have to use your money wisely.
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:Let's say that.
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:There are so many different ways
you can go on vacation and not use
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:your earned money to pay for it.
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:, another thing.
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:, Hustle hard.
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:Work hard mentality.
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:Like, I really feel like there's
nothing that says there's nothing
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:wealthy about the hustle hard, the
work hard mentality, you know, it was
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:going around in 2023, the soft life.
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:I want to live the soft life, soft life.
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:And then I started thinking about
it and I did, I listened and I
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:watched and I read a couple of posts
about, you know, women saying that
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:they wanted to live the soft life.
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:And I was like, Shouldn't we
have always wanted to live
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:the soft life, but guess what?
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:Social media wants you to think
you have to hustle, hustle,
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:hustle hard when you really don't,
because that's not creating wealth.
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:Yes, work smart.
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:Understand the principles first, and when
you understand the principles, then you
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:can use the tactics and the strategies
and they work for you versus against you.
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:So what is true wealth and what
are the benefits of true wealth?
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:I feel like true wealth is being able
to go where you want, when you won't,
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:, and spend time with who you want.
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:without having to ask for permission.
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:That is just my definition of wealth.
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:, I'd like to know like shoot me a message.
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:I want to know what your definition
of wealth is and if you are seeking a
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:wealthy lifestyle versus making money.
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:I really, hope that this episode
at least enlightened you a little
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:bit about the difference in Making
money versus building wealth.
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:I hope that you got principles.
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:I hope that you understand the, tactics,
the strategies and the different
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:ways that we can all be rich friends.
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:And if you didn't, then I urge
you to go to rich friends, book.
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:com.
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:And pick up a copy, your copy of
we should all be rich friends.
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:It is your ultimate circle of success.
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:And you'll learn more and more
about, the different principles of
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:creating wealth and real riches.
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:It's Dr.
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:T.
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:Mac here.
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:I want you to remember
that you can have it all.
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:See you on the next episode.
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:And I'll see you
