64% of Americans Live Paycheck to Paycheck. I am VERY Afraid This is Going to Get A LOT WORSE. Sorry

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good morning good afternoon good evening

folks michael zuber one rental at a time

it is tuesday march 8th and uh we’re

gonna have three sessions that i teased

on the daily financial news this morning

i thought they were that important that

uh

2 000 people which usually tune in for

the daily financial news need to watch

these so

mr lumberjack i gave you a little heads

up number one is going to be an article

that i shared with you this morning that

i don’t know

frighten me shook me whatever you want

to call it but basically it’s now

reported that 64 of americans

live paycheck to paycheck and oh by the

way not to be really outdone 43 of the

people that make a hundred grand a year

also live paycheck to paycheck so

don’t know what you thought when you saw

that article

but there’s a lot of stuff to talk about

but let’s let’s go with your first

impressions

uh these are all my own opinions these

should not reflect poorly on mike zuber

oh no

oh no

fact of the matter is if you make over

six figures and you can’t get your act

together

you got work to do get it together

figure it out a better understand

expenses better understand the power of

no better understand the power of yes

saying yes to yourself saying yes to

your future saying no to being a

petulant child and must having things

that you must have right now and keeping

up with the joneses i’ve got some of

those keeping up with the joneses they

think they’re keeping up with me they’re

not dude they’re so infinitely behind me

it’s not even funny and they’ll never

ever ever catch me because because of

trajectory and people can have that but

what that shows me what that largely i

think teaches us is that many people are

petulant children and that they don’t do

what it takes to become successful you

got lucky i got lucky we got lucky oh of

course we did yeah we got lucky yes mate

you almost made me swear which i really

try not to do that almost came out yeah

and so we both got lucky and the fact of

the matter is is that they have to

ascribe it to luck because they can’t

ascribe it to what it actually is which

we were harder workers than they were we

outworked them we out hustled them we

outplanned them we out said no to them

right yeah we said to ourselves

sacrificed at a level that

few can comprehend yeah exactly and so

what i always tell people is and any

whether it was the business insider

interview that we did last week which

was which is a lot of fun

um or other interviews that we have with

you know high school kids and college

kids i always tell them one thing

everybody wants my life now

nobody wanted my life 20 years ago yeah

not not anybody

so so so i have a couple of thoughts um

i don’t know how to say this

but we have been living in roughly

speaking

one of the best

living through one of the best economies

in my adult life maybe not the best but

certainly the top two or three

sure and i bought i believe we’re about

to live through one of the worst if not

the worst economy yep

and if we have 64 percent of people

living paycheck to paycheck in one of

the best economies

what the heck is going to happen

when we get to one of the if not the

worst economy right i see what’s going

on with oil for for me again studying

the consumer man i’ve been doing this

for freaking 30 plus years yeah

what’s going on with oil today

yeah sure you get all these silly

instagram posts oh look at my gas tank

and

folks you don’t understand

that’s like

that’s like step one of a 100 step

journey oil is in everything

that’s right and

these the

costs are going to i mean

oil oil costs are going to impact

everything how do you stuff gets shipped

it’s i mean

it’s in everything and it is going to

ripple through i mean we we again i

think we’ll see a cpi print at eight

even if we see expectation if even if we

see 7.8 who really cares at this point

what we’re going to see in april and may

it will be double digits assuming peace

doesn’t break out

today right this all stops at peace

breaks up

that’s not kind of the base scenario

it’s certainly what we all hope for but

it doesn’t feel like

we’re there and

food food food uh it’s just man dude i

am so nervous about what is coming

but instead of kind of being nervous i

think there’s three things to think

about because i have lived paycheck to

paycheck most of my life sure

which people don’t really appreciate i

was married at 19. i was a sophomore in

college and i was married talk about

living paycheck to paycheck sure right

um i mean the good news is it’s not like

you waited forever have a baby too yeah

exactly

helping raise theresa yeah

the best i could um

but here here’s the deal right

there i think there are three things

that you think about or when i talk to

people or i mentor people but here’s the

deal if you’re looking at your wallet or

your bank account or your checkbook or

your debit card or whatever it is and

you’re really leaving paycheck to

paycheck step one is you got to make

more money just flat out it just you got

to make more money the best news i have

for you in my rant which this is

probably going to be a rant it feels

like that’s building um this is the best

time to be an employee that i’ve ever

seen

yeah

you work

anywhere you work i guarantee you have

competition

quit go to someone else you will get a

bigger raise your employer and again

i’ve been a hiring manager for the last

12 years of my career i could give you

three maybe five percent i might have

snuck in six percent for like the best

of the best

you quit go to my competitor you’re

gonna make twenty percent

at least

step one

suck it up i know your friends are over

there and i know you you like to

you like the coffee treats so they get

you and oh stop being soft it is about

adding more money to your checkbook so

my first answer is quit get a new job

second

i

being married at 19 didn’t have a lot of

hope so i had two jobs i got two jobs as

a college student working taking

full-time classes it took me five years

to graduate i worked full-time i went to

a junior college first and santa clara

university second

and i had two jobs i literally went to

school at 7 30 which was the earliest

class available i was out by 11 30 and i

was working 12 to 9 or 12 30 to 9

and then i would work weekends somewhere

else

get another job

if that is really where you’re at the

first job is income

now i there’s two more steps but instead

of ranting more i’ll stop there for a

minute and see what you think about that

uh yeah i had multiple jobs for a long

time

exactly right two only two only two

i mean come on like it was it is what it

is it’s like you know you show me

somebody today that you know isn’t where

they want to be and i’ll show you it’s

because they’re not executing on a good

plan yeah

you know and you see it all the time

with 20 somethings i mean we we house a

lot of 20-somethings if you can’t put

together your 500 share of that 2500

rent

you have bigger issues

yeah few bigger issues you

and you should probably not have a

minute of your own of your of you time

yeah you should probably have nothing

but it should be sleep yeah the only

thing you should do is sleep right yep i

work and i sleep yep that’s what i did

did it for 20 years that’s where you’re

at and again what people don’t realize

is i had i mean i graduate with a

four-year degree get my big accounting

job making like i don’t know what it was

27 grand a year or whatever it was back

in the day i still worked weekends i

worked seven days

a week

for 10 years yup

is that all yeah it’s certainly not i

mean like no like

the only day i had off was like

christmas and thanksgiving because if

both places i worked were shut down

correct right exactly it’s not not like

i didn’t want to work because i i

couldn’t work right at least where i was

at here’s another thing you’ve taught me

this

not only all of those things are true

but that’s old guy speak that’s a that’s

a that’s a 70s kid speak

if you’re you know 20 something or a

teenager or even in your early 30s today

take whatever you are passionate about

and go create a side hustle it is not

that hard to create side hustles that

produce hundreds if not a couple of

thousand dollars a month

i don’t even know what the hell i’m

doing and i’ve created four side hustles

now five that produce a thousand bucks a

month i don’t even have any idea what

i’m doing

and i did that so go create

a side hustle i mean take your i don’t

care what your passion or hobby is is it

is it trading cards is it pokemon is it

ford mustangs is it peanut butter or

jelly sandwiches i don’t care

go do something productive and create a

sizable so step number one if you’re

living paycheck to paycheck

is get more income

get your job go to your competitor

uh get a second job

get a side hustle all right so that’s

income

number two is you better look at your

damn expenses that was eye-opening to me

i’ve talked about it many times olivia

and i

uh we’re living

paycheck to paycheck at i was 30 31

and we started ratcheting down our

expenses and made very hard choices and

again lived a lifestyle that most people

wouldn’t want

and um we got down to 50

most of that time we were at you know 65

70

but i promise you if you really got

aggressive you could whack some expenses

right

you could house hack you could have

roommates you could you could get on

dude you’re living paycheck to paycheck

be uncomfortable

right go do something right let’s kind

of expenses when it’s supposed to spurs

it’s supposed to spur

somebody making a change

because they want a different result

yeah

you know like i see kids all the time in

their 20s and they’re partying and you

know still friday saturdays and

recovering sundays and i’m like yeah you

can have that lifestyle and you’re

signing yourself up for mediocrity

you’re gonna it’s gonna be the story in

your early thirties is gonna be the

story of the last lost decade hope it

was worth it and that’s why you know for

for me i mean i’m only 44.

and so i was working my butt off in the

two you know late 90s to early 2000s

watching other friends go out and party

and hang out and

take ski trips and

all this other stuff

and my reward for you know for working

my butt off was if i was good enough and

i made president’s club and i got a free

trip

that was that was my travel for the year

that’s what i got i got four nights in

five days because that’s what the tax

code allows

and

so if you want it you can go get it and

yeah i mean if you want to just describe

us to being two old guys that we just

don’t get it and we just don’t get 20

somethings now i’ve got tons of

20-somethings that are tenants yeah and

i know some of them are going to be

tenants for the next 15 years and i i

know others are going to absolutely own

their house in the next three to five

years

and the difference between the two

is

one of them doesn’t make a lot more

money than the next it is that they have

the power

and they own it and they say i’m gonna

say no to this because i don’t need it

right now i’ll continue to drive an s

box

that my friends make fun of hoopty

you know whatever i mean

i can afford any car i want i still

drive a 2008 pontiac grand prix with 104

000 miles on it

and you know what whatever fine that’s

the car that i pack my safe i pack my

kids in there and we go when we look at

properties and things like that

and i’ll get to lambo but i’m going to

get it when everybody else has to sell

it me and me and t baldwin yeah exactly

me and todd we’re going to sit there and

we’re going to wait until those things

are half price and then we’re going to

buy exactly what we want we’re going to

get it for half price

so yeah i just i just implore people you

know it’s important that they do the

work it’s important that they’re doing

the real estate side of things but the

financial understanding

just it has to be there and you have to

be willing to sacrifice at some time and

you’re sacrificing right now

being able to be truly financially free

in your 40s 50s and 60s that’s what such

a crime is i mean a lot of 20-somethings

are still doing nothing but just racking

up more debt that’s just not good

so the final step in this equation for

me is okay you’ve increased revenue

you’ve lowered expenses now you’ve got

to take that cash and you’ve got to put

it in assets

that produce real cash flow tax

advantage all of that for us that’s real

estate single family homes house hack

house hack house act 4321 all the

strategies that you talk about todd

baldwin spencer connery all these people

that should be celebrated right i think

spencer cornelia and todd baldwin need

to be celebrated more than meet kevin

and graham stefan why do i why do i say

that both of those guys did what was

uncomfortable they actually bought

houses on purpose to live in roommates

they got on the property ladder early

they’ve seen the appreciation todd

baldwin his first deal 19 grand turned

into several hundred grand

because he was wounded with roommates uh

you know if you’re gonna go get three

million followers on youtube and then

talk about a coffee company and this

that the other that’s not going to be

most people

most people can house that most people

can have roommates and i think i wish

todd baldwin and

spencer cornea who both have been on the

show uh you know would grow and then you

with four three two one needs to be a

bigger channel dion i mean it’s just

ah it’s uh you gotta buy assets and i

mean grant cardone i talked about grant

cardone on the daily financial news he’s

a billionaire now

what did he do he busted his head he’s

busted his butt

he saved money he he invests in assets

and then once the assets produce income

he goes and buys toys and who wouldn’t

want to have his life now but i promise

you i had no interest in his life when

he was doing millions of miles a year on

airplanes talk about shoot me now

oh

god can you imagine well i mean well and

the crazy thing is right is that that

many miles a year to go and pitch car

guys

i was a car guy yeah and that is a hard

hard

hard lifestyle that is a hard life

especially in the northeast

or or north of the middle of the country

where you have to

move 300 cars on a lot and then

clear the snow and then move them all

back so everyone can see them and jump

in and take any car for a test drive

so

yeah it’s it’s hard but you know what i

mean that’s why you know that’s why the

you know the wealth gap continues to to

divide is it’s not an income gap it’s an

asset it’s an asset

that’s the issue it’s an asset gap

and so yeah the next the last few years

have been very kind to me on my balance

sheet and that’s nice but i like the

cash flow the cash flow is far more

addictive than the oh look at my pfs

number i care far more about the cash

flow and growing that yeah and uh yeah i

think people people would better get

their ex together because

the the funding and the free money and

the and you know think about this mike

you know if if the country were on a

better track we could have 2.40 gas 2.20

yeah it’s about to be five dollars uh

it’s already 479 where i am

yeah the national average this morning

so yesterday the national average was

four dollars and one cent it’s four

dollars and 14 cents 24 hours later it’s

not on a good trajectory no and it’s and

the problem is is that new hampshire the

highest we ever got was four i think 407

and so now we’ve broken our all-time

record like it’s not good yeah we’re

we’re about to be i think i i i don’t

drive a lot so i filled up a week or two

ago i think was 5

49.

i drove by the gas station earlier it’s

5.79 now and i’m sure it’s going to be

higher today it’s going to be in this

it’s going to be in the sixes but it

could be in the sevens

yep yeah so folks again this article

scared me 64 of us and what really

scared me the 43 of you making 100 grand

a year living paycheck to paycheck i got

news for you these last two or three

years really haven’t been that bad

they’ve actually been in the top two or

three economies that i have seen

it’s about to be ugly and i i fear it

might be the worst and i lived through

the great recession i lived through the

dot-com crash i i was 90 days away from

being uber rich

but unfortunately we filed 911 had to

cut the company in half got sold for

parts

it was it was bad right so

it was yeah it was um i’ve seen some

very bad economies i’m afraid what comes

in the next 12 to 18 to 24 months might

be

the worst i’ve ever seen so

as you have said before buckle up

buttercup

it’s about to get bad so um

yeah

and any closing thoughts on this and

then how can people find you i’m still

buying real estate mike yeah me too i

plan to buy a lot of it frankly yep i’m

still buying real estate because

at the end of the day a lot of people

are starting to get ready to run out

and

the fact of the matter is is that you

don’t want the i mean the fundamentals

are still there it’s still 30-year fixed

rate debt and that’s gonna do nothing

but go up i believe in the next few

years so yeah um but yeah you can find

me on lumberjack landlord on youtube and

you can find me lumberjack landlord on

instagram

folks the next two episodes are going to

be must watch we’re going to talk about

what has to happen to see real estate

blow up and go 20 higher and then we

will do the other way blow up go 20

lower all of you keep asking and leaving

comments so we’re going to just talk

about it thanks buddy thanks mike

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