WHAT IS THIS EPISODE ABOUT?
In this episode, I’m going to share everything I’ve learned about money from the likes of Brad Gibb and Grant Cardone. Our relationship with money and how we view money ultimately determines not only what we can be able to do with money, but also what we do with our money.
WHY SHOULD I LISTEN?
The sayings that we should save our money and not spend it are very misleading, and act as a barrier to one becoming wealthy. Listen in as I explain all that and I guarantee you that it will change your life for the better.
Here are the key topics discussed in this episode:
- Cash is trash and cash flow is everything: Where to focus on (03:26)
- Money amplifies what’s there in every aspect (06:24)
- Money is simply a tool that allows you to go out and achieve your goal (17:48)
- Money can only amplify something that it affects (20:56)
- The importance of emotionally detaching ourselves from our money (22:25)
- Investing and spending money on things that will produce cash flow for you (29:02)
- Cash flow is the lifeblood of our goals and dreams (35:54)
WHERE CAN I LEARN MORE?
Be sure to follow me on the below platforms:
WHEN DID IT AIR?
October 28, 2019
- Selling with Confidence
- Josh’s New Travel Instagram
- Josh’s Weekly Vlog Videos on YouTube
- Josh’s Daily Blog
- The Mindset Guide
Be sure to follow me on Instagram @joshforti
You can find the transcripts and more at www.thinkdifferenttheory.com/137
You can find this episode plus all the previous episode here.
Be sure to grab a copy of The Mindshift Playbook here
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Disclaimer: The Transcript Is Auto-Generated And May Contain Spelling And Grammar Errors
00:00 How you treat the current money that you have now, is how you’re going to treat the current money… or the money that you have when you go and have a lot of it, or if you were given a lot of it. So it’s incredibly important to understand, okay, if I can now start treating my money like I would, and set up systems, and decision making things like I would when I was rich, then what’s naturally going to happen, is the results that would happen when you are rich are going to start to happen when you don’t have a lot of it.
00:30 You are now entering a new paradigm. So, here’s my issue. I wanted to find the answers to life’s biggest questions. Things like, how do I become happy and live with purpose? How do I make more money doing what I love, and what does it mean to be truly successful in all areas of life? My name is Josh Forti, @JoshForti on Instagram, and I ask life’s biggest questions and share the answers with you. My goal is to help you find purpose, happiness, and open your mind to new realms of possibility by helping you think differently about everything you do, know, and understand. On this podcast, we think different, we dream bigger, and we live in a world without limits. This is a new paradigm. Welcome to The Think Different Theory.
01:15 What’s up guys? Welcome back to another episode of The Think Different Theory. My name is Josh Forti, and today’s episode is an episode that I am going to call, “Cash is trash.” That’s right. Cash is trash. I actually stole that headline or that… title of this episode from Grant Cardone that talked about Cash is trash. I was watching an episode of Impulsive, which is Logan Paul’s podcast, and he had Grant Cardone on that podcast, and on that show, and that they interviewed him, and they talked through everything, and it was… it was actually very, very interesting to see. It was super cool to see him kind of open up about what he’s done with cash, and how he got there, what he sees is important, and also give Logan advice on that. And so I started to talk about this topic of Cash is trash.
02:02 And before you think, “Josh, what the heck are you smoking?” Because today, I’m not smoking anything. The reason I want to focus on this is because I think that so many people don’t understand this concept, and it’s… ultimately, I think the shift that needs to happen that will allow you to invest in yourself, and allow you to do things with cash that maybe you wouldn’t have done before, and it will hopefully be the episode, and hopefully what we talk about here is going to be the thing that kind of… if it doesn’t fully change your relationship with money, at least it will start the process and really make you think about the relationship that you have with money, and how you are treating it. Alright? And, it’s interesting because… so recently I have become pretty good friends actually with a guy by the name of Brad Gibb, who many of you know who that is.
02:48 We had him on the episode, or on… I’m sorry, on the podcast for episode 100. It is by far our most downloaded episode to date, and it has been ever since it came out. It’s absolutely crushed. It’s about two hours long, and it’s titled, “Episode 100: Everything That You Know About Money Is Wrong.” And so, Brad and I became friends before that, and then we had that episode, and we’ve become very close friends, and, and, and more so, over the past several months. And so, he and I have been talking about… a lot about my finances, and our relationship with money, and things like that. And I was kind of sharing some of the things that, you know, I was going through and I was like, “Okay, here’s why I have cash here. Here’s what I’m doing here. Here’s where I think I messed up.” And we walked through everything.
03:26 And it’s interesting to hear, I mean, this is the guy that’s incredibly, incredibly smart, right? And then I have, you know, he’s managed hundreds of millions of dollars and has dealt with just crazy amounts of, of money. And, and he’s very smart with all that. And so I listened to him and then I listened to like Grant Cardone. And it’s interesting where, I mean they, they don’t agree on, on everything, but they, they do agree on the very basics of money principles as cash is trash, cashflow is everything and like the areas upon which you should focus on. But one of the things that I have learned tremendously about or up through Brad and Grant Cardone and I’m just going to use him because he’s a another real big money person that a lot of people associate when it comes to money, him and Robert Kiyosaki as well. Um, one of the things though that I learned from Brad and that Brad explained in this way that I could understand was changing your relationship with money.
04:17 All right? And, and really going through and understanding this cause as I’m going through and I’m sitting there and I’m like, you know, Brad, I’ve got this and I’m going through and um, Brad and I have this relationship as to like, we, we really look at the whole picture of everything. I like to do that. Brad really, really likes to do that for context, but we look at all of the things that are affecting whatever it is that you’re doing. So for me, when I sit down and I analyze social media, I don’t just look at your Facebook group. I’m going to look at all the different things that could potentially play into this. And we’re gonna look at goals. We’re going to look at what led you to start that Facebook group. What’s your, you know, what your relationship with the social media platform is as a whole?
04:54 I’ve got to have a complete picture of what I’m doing. Same thing our car mechanic would do with a, you know, with a car, car’s broken, he’s gonna go and he’s gonna look at the, the whole picture of everything. Do a diagnostic to see what’s working, what’s not working and things like that. And with Brad, same thing with money is you go through and you get this entire perspective of money and your relationship with money and what your goals are and things like that. And one of the things that we really, really focused on talking about is my relationship with money. And then the average person’s relationship with money and how your relationship with money and how you view money ultimately really determines not only what you’re going to be able to do with money, but, but also what you will do with your money.
05:37 Alright. And so I’ve kind of broken down this episode into three key points and one of them I’m sure that you’ve, yeah, I’m sure that you’ve heard the second one you probably have heard. And then the last one may or may not have heard, but I want to explain it to you in a way that like really made sense to me because once I understood this and then, you know, Brad explaining it even further and really diving in from me specifically, I had a lot of aha moments that really made me go, okay, I understand that better now. And one of the things that I have done on this podcast, especially in my early, my first 50 50 60 episodes before we started bringing on people to interview is I tried to go through and I tried to explain things in the way that people could understood and take things that are like cheesy statements that have a lot of wisdom in them and explain the why behind it.
06:24 And one of the things that I think about is that like most people, I don’t think take cheesy quotes seriously or quotes or, or life advice pieces that are passed around a lot. We often time to times tend to like be like, Oh yeah, everybody’s heard that. Oh yeah, the basics, we tend to like overlook that because everybody talks about it, but if we really looked at the reason why that tactic was there or why that piece of advice was there, we start to go, wow, that’s actually really, really important, but because we don’t have full context around and understand why that’s a good piece of advice or why it is that way, we tend to look at some of the pieces of advice that I’m going to give you here. I was like, okay, duh. Everybody knows that. All right, so the first thing I want to like talk about here is like you, we’ve got to understand that money amplifies what is already there right now that, that that is going to be my point number one here and I’m going to die for their end to that.
07:18 But chances are you’ve heard that right when you go and you’ll hear people say, Oh yeah, well, you know, money didn’t change him. Money just amplified what was already there. If you’re rich and you’re in a hole, right, you’re going to be rich and in a hole. If you are, you know, rich and a nice person, you’re gonna be rich. And, and sorry, if you’re pouring a nice person, then you’re going to be, uh, you know, rich and a nice person as well, and it’s simply going to amplify what is there. Now, while those things are true, I think that it is absolutely important to take this much further, another step down the road and look at something else that I don’t think most people understand when it comes to money. And when it comes to money, simply amplifying what is there when you go. And because when you have $1, all right, you can only, you have, how do I, how do I say escape?
08:05 When you have $1, you have $1 worth of spending power. So when you have $100, you have $100 worth of spending power. It is the same thing, right? Except it’s a hundred times more powerful. It’s still both of those things, our money. So the thing upon which it is does not change, but the more that you have, you now have more of that power, that power of what you can do with that has been amplified. And so when you take that power and then you apply it to something, then that is amplified. Okay? So when you have $1 to go spend on whatever of your net worth was $1, you don’t have a whole lot of power per se with that money. So whoever it is that, you know, people are saying, Oh, he’s poor, right? And if he’s rich, it just amplifies that. You’re basically saying, I am $1 of amplification towards whatever it is that I’m trying to do.
08:55 If I have $100 net worth and I’m a hundred times more powerful or more amplified in whatever it is that I’m doing, then my $1 a thousand is a thousand times more and et cetera, et cetera, et cetera. Right? Well, that doesn’t just apply to the personality that we are as a human, whether we’re nice or not nice or a jerk, which is the way that most people go and think about it, but it also applies to our habits in our daily lives, in our business and with our money. So if you were to go and be careless with your money at $100 or $50 or you know $1,000 and your careless with that, if you were then given $50,000 and with you or you know not wise or you were dumb with $50 and now you have 50,000 guess what? You are going to be a thousand times more unwise with that money and you’re going to ultimately go and blow it.
09:51 Just like everything else. The decisions that you are going to make with that money. You might not be a jerk, you might be a super nice person, but the more money you have and you just constantly get rid of it because of the habits upon which you deal with any amount of money are the habits that you’re going to deal with at any amount of money. Meaning that how you treat $50 is how you’re going to treat 50,000 it’s how you’re going to treat 500,000 right? So when we say money amplifies what is there, right? All we’re saying is, Hey, listen, how you treat the current money that you have now is how you’re going to treat the current money or the money that you have when you go and have a lot of it or if you were given a lot of it. So it’s incredibly important to understand, okay, if I can now start treating my money like I would and set up systems and, and, and decision-making things like I would when I was rich, then what’s naturally going to happen is the results that would happen when you are rich are going to start to happen when you don’t have a lot of it.
10:51 And so what happens with a lot of people is when they say, Hey, Oh, it amplifies what’s there. They’re trying to make more money, but as they try and go make more money, the more money that comes in, it amplifies their chaos. It amplifies them being stupid with money. And I know this because my first run at a lot of money when I made a quarter million dollars, right? I blew all a lot of it. Like a lot of it because I was foolish with my money early on, I didn’t understand the importance of not saving your money but investing your money. I didn’t understand cash flow. I didn’t understand assets, right? I didn’t understand all these things. So when I made a quarter million dollars and I blew six figures, right? What happened is because it amplified the chaos and the disorganization that was already there in my life. The same thing is true when it comes to investing and when it comes to investing in ourselves.
11:44 So I hear people say a lot, man, if I had $10,000 right now, I would totally go out and buy a course, right? I would totally go out and spend 10% of that, 20% of that on a program, a coaching, you know, to better myself, right? But yet they have $100 right now, and they’re not willing to go spend 10 or 20 of that. They don’t find ways to go better themselves with that money. And that’s because, and the reason that they’re never going to get to where they want to be and then they’re never going to invest is because they’re not taking it seriously now. And you might say, well, I don’t know how I could possibly, you know, invest $20 wisely or invested into myself now. But if you were serious about it, you could start putting $20 a month away so that in three months from now, six months from now, you have 103 hundred 500 whatever it is, so that you could go invest in yourself the same way.
12:33 If you had hundreds of thousands of dollars and you want to do invest in $100,000 property, you might not go and buy it all at once, but you could put a percentage of it aside and go invest into it. So what you have to understand is that money amplifies what is there. Yes. But it doesn’t just amplify your character, it amplifies your decision making. It amplifies how you think. It amplifies everything about what you’re doing because the money controls our lives. Right. And I don’t mean like that. I mean it does control some people’s lives, but money is like the lifeblood of society is what makes things work. We make a lot of decisions based off of money. And so if you are being foolish with your money now any of your decisions that revolve around money or that are made or involve money in any way, they are going to be effected when you’re rich or your port that much more by that decision as you grow, it will grow.
13:27 So right now, if you have, let’s say $5,000 in the bank, I’m gonna use this analogy one more time, I’m gonna move on. But if you’ve got $5,000 in the bank and let’s say 80% of your decisions revolve around money, well guess what? When you have $50,000 in the bank, so now that’s 10 times more money, right? Those decisions that you’re making are going to affect you 10 times more, right? So 80% of your decisions are now going to have 10 times more consequence, positively or negatively in whatever direction that you are going based on the decisions that you have with money. All right? So money amplifies what’s there and that’s very, very important to understand. The next thing that I want to talk about and kind of what goes into this was once I started to realize that I started to go, okay, so for me, for Josh, I look at this and I know that I am, there is a percentage of my money that I am careless with.
14:17 All right? And while I am totally about having money set aside specifically to spend, I am not against going out and you know, quote wasting money, buying yourself a nice pair of shoes just because you want it, buying that sports car. If you’re rich going out to the movies, whatever, just doing something that is not cash producing asset or investing your money. I’m totally okay with all those things. But if that percentage is 30, 40, 50% right? And at one point in my life, it was for me, then I’m like, okay, um, that’s a, Hmm that, that’s, that’s an issue, right? I’ve got to, I got to start to get wise with that. And so I started to look at, okay, well if I, if I was not going to spend my money on these things, where would I go and put this money and what would I want to spend my money on?
15:02 And so I started saving more money and I started to, you know, think about this and I watched my bank account balance start to grow up and I started to realize, okay, guess what? I want to go and buy a house or I want to go and buy a, you know, investment property or I want to invest in coaching or education or whatnot. All of those things are tools that get me towards my goal. So if I have a goal, let’s say of building $1 million company, a tool that is going to help me get to that point is, a coaching program, right? Hiring a coach or a mentor. If I am, uh, trying to build up, you know, maybe another one, you know, if you’re investing in product, product as a tool to help you get there, if your goal is to be a, you know, gym, gymnast, right?
15:46 And you want to be all about the gym or whatever, a coaching program or maybe some, you know, workout clothes, things like that. That’s going to be a tool that helps you get there. If you want to be super-rich and you’re investing in investment properties, those investment properties are simply tools to help you achieve a goal. So whatever it is that you’re trying to do in life, you’ve got this goal. And we all have goals, whether we realize it or not, they might not be clearly defined, but you have a goal to, you know, go to bed at eight o’clock tonight or you have a goal to watch more Netflix, or you have a goal to go shopping today. Like we all have basic goals and we all need tools in some format or another in order to go and achieve that goal. Right?
16:22 And so what I realized was that every time that I needed to get towards a goal, I needed a tool to get there. And more often than not. If I wanted to get to that goal quickly, I needed to purchase a tool or invest in a tool that is going to go and help me get to that goal. Now, if you were to go build a house right now, right, chances are you’re probably at one point or another going to need a hammer. If you personally were going to go build a house, if that was your goal, Hey, my goal is to build a house and somebody else’s goal was not to build a house and you went to them and said, Hey, I’m going to invest some of my money. I’m going to spend some of my money in a hammer for you. That is a good tool that you are buying for somebody else.
17:05 They might look at you and go, that’s so dumb. You think it hammers a good investment. You’re so ridiculous like hammers are not good investments. And so if you were to listen to them and be like, uh, okay, I’ll wash it and buy a hammer, then well, you’re never going to be able to, or what are you gonna use bricks or rocks like to nail in things? A hammer is a tool that is going to help you get to your goal much faster, right? But what do you need in order to buy a hammer? You need money, right? So you are exchanging money for a tool. Well, what does that mean? That simply means now that this money is a tool to get you that tool, getting a hammer so that you can build a house is now your immediate goal, right? I have a goal to build a house, and this is not me.
17:48 I’m just using as an example, and I’m trying to simplify this down. I know this is kind of heavy stuff here. Okay? I have a goal to build a house. I’m like, sweet. That’s my goal. What do I need? I need a hammer. Well, I need to go get a hammer. Now that hammer is my more immediate goal. So what do I need to do in order to get that goal? I need money. I need to go to the hardware store. So go to the hardware store. I get my money, I get my hammer, I have exchanged value there. I have used money as the tool to get my tools so I can go accomplish my goal. Right? Money is simply a tool that allows you to go out and achieve your goal. Money itself can never be the goal because if money is the goal, then you’re saying that the tool is the goal.
18:27 And it’s like, well, okay, but like then what? So you’ve got $1 million in the bank and then 500 or 5 million or 10 million. Like okay, that’s great, but money in and of itself, like an arbitrary number could be a goal. You could be like, my goal is to have $100,000 in the bank. That arbitrary number becomes a goal, but money itself, just the, the essence of money and the substance of, Hey, this is money. Money is nothing. Money is simply, well, it’s not a physical, it’s simply a tool. Okay. It is a tool to get you to where it is that you want to be in life. And so what I’m saying is is, okay, I sat down there, I looked at this and I was like, well guess what? The reason that I am not able to achieve my goals as quickly as I would like to is because I’m running out of tools, cash, right?
19:14 Running out of money to be able to go and do those things. So if I stopped spending my money and I become wise in my habits, then guess what? Then what I can do is I can use the money that I would normally spend on things that are, you know, frivolous, foolish things and I can take that money, put it into my, my savings, which is my tool chest. And then when I have a goal, I can reach into that tool chest. I can grab as many tools, as much money as I need so that I can go out there and I can start to build my overall goal. All right? So if we change how we handle and how we deal with money, even at a small level of $50 a hundred dollars guess what’s going to amplify? Those wise decisions are going to amplify our decisions with money.
20:05 And so that when we have $100 we have $100 in spending power. When we have $1,000 and now we have $1,000 in spending power, right? $100 if I’m wise $1,000 I’m going to be wise $100 and I’m unwise $1,000 and I’m unwise. So if I debt, if I’m wise with my money and I have a thousand or at $100 and I put 10% of that into my fun to spend and I put 10% of that into my fun to tides and I have 40% of that to live on and I put 40% away into my tool chest, that is a wise decision right now these are arbitrary numbers. Once again, I’m just making them up. Okay? So I’ve got four 40% of my earnings at $100 so that would be $40 in my tool chest. But if I were be foolish with my money and say, well guess what, I’ve got 40% of my money for living 10% of my money for tithing, 50% of my money towards frivolous things.
20:56 Then when I have $1,000 come in, rather than putting $500 into savings or $400 into savings like you should because you are foolish with it at $100 and you didn’t take the time to set up the systems and set up the processes of everything, you’re going to get that thousand dollars boom, you’re going to spend all 500 of it. And it’s not that you couldn’t have used that tool to achieve a goal is that you use that tool who will have the thousand dollars and in this case 500 of it to actually go out there and have a goal of being very stupid and frivolous with your money. Makes sense. So when you understand that money, excuse me, when it comes in is a tool and then your decisions around money are amplified by money, right? Money can only amplify something that it affects. It can’t amplify something and it doesn’t effect.
21:46 So if money is affecting your life in any way, which it is, right? Probably 80 90 maybe even a hundred percent of it, right? If money’s affecting your life, that much of your life is going to be amplified. So if you’re making smart decisions there, the more money you have, the more that that’s going to be amplified. That is why it’s so important to have a healthy relationship with money and understand that it is just a tool. All right? So when you understand money’s a tool, I should not have an emotional attachment to it and it’s just there to get me what I need to go get. Then, wallah, you’re good to go. Now I’m going to start making wise decisions based off of that so that when more money comes in, I continued to be wise and I continue to grow and I continue to expand.
22:25 So many of us and myself included will sit down and we’ll go and we’ll get emotionally attached to money. And I’ve, you know, it took me a long time and I still battle with this some time to be able to just detach myself and become emotionally unattached to my money. So when I’ve got ten thousand fifty thousand, 100,000, $200,000 in the bank, right? I look at that and if I have an a hundred thousand dollar opportunity come up, I go, Oh, guess what? That opportunity requires 100,000 spending power worth of tools. Guess what? I’ve got that 100,000 worth of spending power and tools in my account. I’m going to exchange these tools in order to achieve said result. I’m not going to get emotional and be like, Oh my gosh, no, I only have $100,000 in the bank because I spent half of it on this other thing and then I’m gonna freak out because now my self worth goes down.
23:15 Or now like I’m worried and I’m, you know, losing money. No, because I’m investing that money into my goal. And you should only make goals that you want, right? You should only make goals that are gonna continue to lead you down the path towards more goals. So you’ve got your overall life goal, you’ve got you, you know, 10-year goals, your five-year goals, your, your goals, your six-month goals, your 90-day goals. So when you’re investing in a 90-day goal, those goals are helping you to get to your year goal. And those your goals are helping you get to your 10-year goals, 10 years, your goals, et cetera. So when you’re spending money from your bank account, who, who cares, right? Like when you have money set up correctly and let’s say for the purpose of this conversation, your bills are paid, you’re good to go, you’ve got your little savings, whatever.
23:58 And let’s say you’ve got $20,000 $30,000 saved up, or even $5,000 saved up. A lot of people are so afraid to go from 5,000 to zero and I’m like, well why would you be afraid of that? Because the only thing that you should be spending that money on is things that are going to get you towards your goal. And if it’s not doing that, you shouldn’t be spending your money there. And so what, let me ask you something. Would you rather have your goal or would you rather have $5,000 in the bank? And most people say, well, I’d much rather have the goal, but they’re afraid to spend that because their relationship with money is wrong. They think that money itself has some inherent value, but money itself has no inherent value. Money is simply a tool of exchange that when sitting there means nothing.
24:39 Grant Cardone says cash is trash. Money means nothing. It doesn’t do anything for you. Sitting in a bank account is not going to better your life. It’s not going to help other people, not cash in. The bank does. With very, very, very, very, very, very, very, very, very few exceptions of the Uber rich and leveraged power. Whatever cash sitting in the bank for the average human being does absolutely nothing to better their life. My life would not change right now. Whether I had $20,000 it’s sitting in a bank account, $200,000 sitting in a bank account. My life would not change if depending upon what, which ones in there just doesn’t matter. So when you understand that and you go, okay, well I’ve got 200,000 in the bank, or half a million or whatever. Now I’m going to go and I’m going to exchange that and I’m going to invest in things that are going to get me closer to my goal.
25:22 You’re simply trading, putting that, okay, wait, pause for a second. I like to think of money as energy, right? Remember when I said spending power? So let’s say I have, I’m going to go back to this example, $200,000 in the bank. I have 200,000 pieces of energy. I am choosing to leave 200,000 pieces of energy in a bank account. If I were to go buy something for $100,000 that is going to get me closer to my goal. I am going to take 100,000 pieces of energy and I’m going to put that hundred thousand pieces of energy into that other thing and then that other thing is going to get me closer to my goal. I did not lose value. I did not lose pieces of energy. I still own that thing. Now that thing might be a physical thing. It might be information that I’ve purchased. It might be an experience that I purchased, but if that thing is going to help me towards my goal and get me there more quickly or better or however that is, that hundred thousand spending pieces or energy pieces doesn’t, I don’t lose it.
26:32 I simply am storing it somewhere else. I’m not storing it in the bank anymore. I’m storing it in a thing or an experience or in training and education, right? So when you understand that everything starts to make sense now and then you can start to change your relationship with money and say, okay, money means nothing and money is simply a tool. So if my goals are in alignment with what I want to get to than me spending money on things that are gonna help me towards my goal, everybody wins and that’s what I want to do. Makes sense. Hope that makes sense. Once again, sorry. It’s kind of hard to explain all these things without a whiteboard and without visuals, but I’m trying my best here. Okay, so we have that. And then the final piece of this I think is super important to understand, and this is the one maybe that you haven’t heard is that you want to invest.
27:20 Well actually the point is, the point number three here with this is cash flow is like blood. It is the like the lifeblood of your body, of your life, of your business. So blood to your body is what makes everything work. Cash flow, not cash. Okay, I’m gonna explain the difference here in a second. Cash flow is the lifeblood of your a company, of your goals, of your life. Okay? If your blood in your body were to just sit there and do nothing and not move at all, you would die. Your blood in your body is constantly moving. It is constantly flowing through your body and constantly improving and, and you know, getting oxygen and giving oxygen and carrying it to all the different pieces of your body, right? That is like what cash flow does to your business, to your life, to your goals.
28:16 So what we need to recognize and realize, and let me explain the difference between cash and cash flow here. Cash is this arbitrary fake thing. That doesn’t mean anything, right? It’s a dollar bill, a $20 bill, like whatever cash flow is the movement of that, right? When you have cash flow coming in or going out of your company, you have the movement of funds going in or out. And so when your cash flow coming into the company is high and is healthy, guess what’s happening now you have these, this basically this flow of tools of unlimited tools because money can buy you basically any tool that you need, right? Not everything, can’t buy you everything. But for intensive purposes, all types of purposes of this conversation, let’s pretend a can, right? Like money is simply this, this tool that can exchange for any other tool.
29:02 Pretty much anybody in the world’s gonna accept money from you at some point or another, right? So you’ve got this flow of tools coming in that you can now say, great, I’m going to go and I’m going to spend these tools on things that are going to get me towards my goal and I know that it’s going to replenish. And so the goal is to invest in things and spend your money on things that produce cash flow for you. And then we call those things cash-producing assets. So these are things like rental properties, like businesses, anything that you own that produces cash flow. Yes, cash flow requires cash. It’s literally in the word, but flow is not strictly cash. It is the flow of cash, just like it is. The flow of blood through your body, the blood in and of itself in your body.
29:50 We’ll not keep you alive. The flow of blood will cash, will not do anything for you. The flow of cash through your life will, because it will allow you to constantly and consistently be improving your life, exchanging for more tools that will allow you to go and chase and, and uh, get to your dreams. So when you’re smart with your money, you’re taking, and let’s go back to this cash flow. Let’s say that every year you had $100,000 of cash flow coming into your life. All right? $100,000, you now have 100,000 energy pieces flowing into your life. You can now put those hundred thousand dollars or a hundred thousand energy pieces anywhere that you want. But guess what? It would be a really smart idea that if, if you were working constantly for those, those 100,000 energy pieces, that $100,000, it would be really smart to take some of that money, some of those energy pieces and buy things that would increase the amount of cash flow or energy pieces coming into your life, right?
31:00 So I know I’m going to get $100,000 every year cause I’m working. I have my job, or I have my business, I’m making 100000 bucks. But if I don’t like if I just spend that money every year, at the end of every year, I’m going to be $100,000 every year. I made $100,000 nothing’s going to change because I’m being stupid with my money. But if I then am smart with my money and I realized that it’s simply a tool and that if I can change my decisions and change what can be amplified because we can only amplify was there, you can’t amplify something that’s not there. So you look at your life, you say, guess what? I’m dumb in these areas with my money. Let me change that so that when my cashflow comes in, when my money’s there, it can amplify my smart decisions, not my stupid decisions. Now I’m gonna go put my money, my energy pieces into things that increase my cashflow.
31:43 So now this year I made a hundred thousand. Next year, I’m gonna make 120,000 next year I’m gonna make 150,000 next year I’m going to make 300,000 next year I’m gonna make 500,000 and you’re putting your energy pieces and your tools into things that are going to increase the flow of money. But people don’t understand that like, but anybody can do this. You don’t even someone in a job can do this. Even if you’re broke, you can do this, okay? You can start to make the systems that go and allow you to do these things. So once you understand that, you start to realize, okay, well, uh, cash sitting in the bank is kind of dumb, right? Have your emergency fund have your bills paid for? But let’s go back to this a hundred thousand dollar example. Let’s say that you’re making $100,000 and the one person goes and saves.
32:32 We have three people, okay? Person number one makes $100,000. They saved none of it. They could save $5,000 a year after all their living expenses. Everything is done. They’ve got $25,000 of extra cash. They could save it or they could spend it. They’d choose to spend it on frivolous things, cars, shoes, whatever. Now at the end of the next year, they have $0 million. I mean, at the end of the year, they have $0 million and it start over from scratch and the next year we’re going to have $100,000 I’m gonna repeat the cycle. This is most people in life, right? Then there’s the second person that says, wow, I’ve got $25,000 at the end of this year. I’ve should save that money. And they save that money. And so they go and after year one, they have $25,000 in savings. After your two, they have $50,000 in savings and after year five they have $125,000 in savings and after five whole years, they have $125,000 saves up.
33:18 Sounds pretty great, right? Well. Then there’s a third person that comes in and it says, well, what if aye buy things that are going to help me increase my revenue coming in? My cash flow coming in? So instead of $100,000 this year, instead of saving that 25,000 I’m going to spend $25,000 but I’m going to spend it on an asset that is going to increase my cashflow. So next year I make a hundred and maybe for the first year it barely increases it. Maybe it’s only $10,000 more. But guess what? Now at the end of year two, guy number two has $50,000 in the bank, has made $100,000 both year. Guy number three has a hundred thousand dollars the first year that he’s made $110,000 a second year, and he’s got a $35,000 now to either spend or save at the end of year two and then he takes that $35,000 and he invest it all back in and now he knows more.
34:11 So now the next year he makes a $150,000 so at the end of year three, the first guy is still broke. The second guy has $75,000 in the bank and is still making $100,000 the third guy, however, because he changed his habits, he changed his habits with money. He started realizing, Hey, I can use this money as a tool if I’m just smart with it. Money is going to amplify my decision making. It’s going to amplify how I treat it. So I’m going to treat $10,000 the same way that I’m gonna treat 50th same way. I’m gonna treat a hundred so when I have $35,000 I’m going to reinvest into that or reinvest back in and increase my cashflow again. So he does that. And so at the end of year three, he’s made $150,000 and he takes that $50,000 and he dumps that right back in as well.
34:53 So it still appears on paper that he’s broke or from a cashflow in his bank account that he doesn’t have any money saved up. But for the last three years he’s been going through and so your three comes over, your four comes around and guy number two or guy number one is still broke. Guy number two, it’s going to put 25,000 more away. At the end of your four he’s going to have $100,000 in the bank, but at the end of year four, guy number three just made $250,000 and so now he’s got $175,000 sitting there. He’s got a $75,000 to pay off all of his expenses and his living expenses. He’s got $175,000 now to go invest. He’s now passed by almost double $75,000 more than the guy number two that had him beat first two, three years and now he’s got a 175,000 he can put 100,000 in the bank, go spend 75,000 more into cash producing assets or even all 175,000 and now he made $500,000 the fifth year and so by the fifth year guy number one is still broke.
35:54 Guy number two is making the exact same amount of money and has $125,000 in the bank. Guy number three has assets that are making money for him to where he personally is making $100,000 every year, but his assets are making $400,000 a year and now his assets of 400,000 are going to continue to expound over and over and over and over again. That right there. Once I realized and understood that I was like, Whoa, I need to spend all of my money in cash flow producing assets because cashflow is the lifeblood of my goals, of my dreams, of my business, of what it is that I’m trying to accomplish. So for me, I looked at that and I went, okay, great. So how do I go and invest in cash flow producing assets? And I’m not going to go into that in this episode. We’ll have to do this in a later, at a later date, but I’m going to tell you that step number one, the best cash flow producing asset that you can invest in is yourself.
36:51 Because at the beginning, even if you only have $1,000 to your name, the only asset that you own and that you will forever own that can make you money is yourself. You can go out and make money and you own that. You own yourself. So if you put $1,000 into that to better yourself, to better your understanding, to increase your knowledge so that you can go and make more at the beginning, you’re going to want to do as much of that as possible and then eventually you are going to hit a Mark where you can now afford to go and invest in other cashflow producing assets. All right, that makes sense. So invest in yourself. Change your relationship with money. Understand money amplifies what is there. Money is a tool and money is the lifeblood of your goals, your dreams and your life. All right?
37:38 Money amplifies what’s there in every aspect. That includes decision making, not just whether you’re a good person or a bad person, or a jerk or not. Okay? Alright, guys, that is all I’ve got for you here. I hope this was beneficial. If you haven’t yet, make sure to subscribe to the YouTube channel. Follow us.. or follow me on Instagram @JoshFortiTravels. I’m going to link all that down below. We’re going around the world right now. Four month world tour, 14 countries, and we’re vlogging the whole thing, we’re doing Instagram content, we’re doing all sorts of really cool stuff, so you’re not going to want to make sure… or you’re not gonna wanna miss this. You’ll want to make sure that you’re subscribed on YouTube, and following us on Instagram, because I don’t even know where we are right now. We’re all over the place. It’s absolutely awesome. So, I love you guys, as always, hustle, hustle, God bless. Do not be afraid to think different because those of us that think different is going to be the ones that change the world. I love you all and I will see you on the next episode. Take it easy fam.Peace.
38:28 Yo, what’s up guys? You’ve been listening to The Think Different Theory with myself, Josh Forti, which I like to call, “A new paradigm of thinking”, and real quick, I got a question for you. Did you like this episode? If you did, I want to ask a huge favor. See, the biggest thing that helps this podcast grow, and that will spread this message of positivity and making the world a better place, is if you leave a review, a rating and subscribe to the podcast. What that does is, it basically tells the platforms that this is out on, that you like my stuff, and that I’m doing something right. So if you could take like three seconds out of your day and subscribe, leave a rating, and a review, I would be forever grateful for you. Also, I want to hear from you. I want to know your feedback, your ideas, and your questions for future episodes. So be sure to hit me up on Instagram in the DM @JoshForti or via email contact@ThinkDifferentTheory.com