Episode 754 – How Money Influences You - Part 2
Welcome back to the podcast! Today, we have part two of the conversation with Mike and Jackson (one of our in-house marketers) where they unpack money. What to do with it once we have it and net worth vs gross revenue. And then there’s the other side of the coin which is net worth vs how much you take home a month. Listen in as they break down how to look at your money in a way that serves you.
Adjusting for Inflation
It’s never accurate, or helpful, to view the amount of money you make based on what your check says. If you get a check that says $6,000, that’s before taxes. Once the government takes their chunk, there’s usually a lot less of that check. But something that is even more important to consider in today’s volatile financial environment is inflation. At the rate of inflation right now, it’s about 15% on things we commonly buy like houses and cars. If that rate stays consistent, in five years, the money you are currently making (or saving) will be worth half of what it was when you started saving it. If you don’t factor in the HUGE issue when it comes to wealth, investing, or just building up your savings accounts, it’s going to really work against you.
Savings Accounts Don’t Work FOR You
In Jackson’s case, he doesn’t believe in savings accounts. Because they don’t work for him. They accrue almost no interest and just sit and lose their value year over year as inflation comes sweeping through the nation and really the world. Instead, he invests that money in things that will make HIM money. And though the mentality to have a savings account is a good one, it doesn’t serve us in quite the same way it did 50 years ago.
Talk to a Professional to Get the Best Advice
Though Mike has done well with his money, he isn’t a professional, just sharing his experience. For him, he tries to invest in things that are positively affected by inflation like houses. As inflation increases, so does the price of houses. If you get in with a low mortgage, you can really take advantage of this as rent prices go up. Another investment that has potential right now is cryptocurrency because it’s something that has a limited amount. The things that have value are based on supply and demand. If there is a higher supply than demand, it’s always going to have value.
Final Takeaway: Make your money work for you, not the other way around.
Want to know more about these tools and what you can do to get out of your own way and improve your mindset? Go to growmycleaningcompany.com to listen to our FREE webinar or growmycleaningcompany.com/talk and book a call with one of our coaches. They will get you set up with all the tools, systems, and more to build the business you’ve always wanted.