Video Closed Captioning:
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
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