Why Are So Many Terrified about Money & How You Can Fix it FAST. 2 Simple Steps to Take Control ASAP

Video Closed Captioning:

good morning good afternoon good evening

folks as promised in our daily financial

news this morning thank you for watching

we have a special guest and friend of

the channel mr dion from dion talk how

you doing sir

howdy doing great ready for round one

thanks for having me on the monday i

look forward to thursday so it’s really

really great for me i love it when you

and i get together and just have

one-on-one not that i don’t love three

amigos but sometimes uh it’s nice to

sprinkle just dion alone so i appreciate

you

yeah so what i want to talk about here

is

there’s a financial metric

that

is kind of hinted at in stocks and in

companies but never

never talked about at the family level

and i think everybody needs to talk

about i think everybody needs to

calculate it and i think a lot of you

aren’t doing it

and that is something that goes by the

name of a disposable income

what do you think of that uh what kind

of questions you might have uh about

disposable income

i i think explaining it to people who

haven’t thought in that form

would be step one yeah because most

people think of disposable as i don’t

need it

right it’s disposable i could live

without it but

when you explain it and i’ll give you my

take my my version of the takeaway that

i have and then you can clarify sure

when you make money a certain amount of

that money is allocated to expenses that

are going to happen

housing healthcare food transportation

those kind of things you know wants

versus needs you have needs that need to

be covered

so

what’s left after that

technically would be disposable income

even though disposable doesn’t mean you

don’t need it it means that’s the money

you can put to work yeah

yeah so when you listen to me on my

daily financial news and i’m talking

about earnings right we talk about

revenue

top line

and then there’s this other one called

net income or earnings per share

at the

individual family level and if you’re an

individual who lives alone you are that

family unit you have the same thing you

have your income

then you have a list of expenses that oh

by the way starts with taxes

and 401k and insurance and rent or

mortgage and food and this and this and

this and this

and then at the end of the day hopefully

you got something left

so what in in your family life that is

called disposable income so what is

disposable income

disposable income is in theory stuff you

could light on fire and it wouldn’t

change your life

it is where savings occurs it is where

the income snowball kicks in

it is where you have options

and you know i in my get your money

right course we talk about disposable

income as it relates to time

because

unfortunately

talking about money is not easy

right people don’t like to do it but so

i like to do is talk about time

let’s just say for example for easy math

you make a hundred dollars

and your disposable income after

everything is ten dollars

if you were to go buy a 500 thing a lot

of you

are like cool

i know it’s only five hours of my life

wrong

because

90 of your 100 is already spent it is

actually 50 hours of your life or that

one 500 purchase

is

uh what is that six days six and a half

days

of work

because you only have ten dollars an

hour of disposable income

you guys are not thinking about

disposable income the reason you are

terrified about money

is because you have no disposable income

you are living on the razor’s edge

not because of income

it’s because of disposable income

when you are scared and freaked out your

disposable income is zero and oh by the

way some of you

are negative

your disposable income is negative you

are living on freaking credit cards in a

wing and a prayer

we need to talk about disposable income

we need to focus on disposable income

and for most of you the way to increase

your disposable income is either to

attack expenses or attack the top line

so let’s talk about the top line first

because i think most of you are in a

very unique time

and there are multiple ways you can

increase top line but let’s not let’s

not be cavalier

if you are terrified about money

it is because your disposable income

sucks

so let’s talk about that and let’s fix

that

so let’s talk about uh top line what do

you think dion

well i like the format of the video

we’ve both um i run a company you’ve run

divisions like you’ve had several people

working for you i have about 60 staff

working for me

and a problem

for me is what and it might have been

the same for you when a staff member

comes up and says here’s a problem

okay great what’s the solution yeah

exactly so we’ve pointed out the problem

is people aren’t looking at their

disposable income when they’re making

expense choices

that’s the problem

so the solutions there’s there’s a

couple one

we want to increase top line

we want to reduce expenses

so top line a lot of people especially

in the investing world

undervalue the importance of their w2

income agreed in in the beginning this

is where the ability to get the fixed

rate debt comes from

you’re it’s so weird you can make a lot

of money running a business but if you

don’t have a track record with with tax

returns and ability to show consistency

lenders aren’t likely to do that but you

take somebody who gets

not even a really high just a consistent

hourly wage

it’s easier to get those loans

so your w-2 and i’ve heard you talk

about this a few times

we come from a generation where

longevity was rewarded our parents

worked for companies that had pensions

and states had pensions and now those

are kind of going away

so we have the mindset of if you stayed

a company long enough you’re rewarded

and that’s not really true

now if you change companies every two to

three years instead of a

three to five percent increase every

year you’re getting a 10 to 20 increase

when you shift employers

staying in the same field is important

for lending the lenders are going to

want to see that you’re working in the

same industry

but sometimes it’s going to take

changing employers

sometimes it could just be having the

conversation with your employer showing

out the value that you add and using a

version of the binder strategy

and how i get tenants to request a rent

increase you can get your employer to

request you to take a raise

if you go to your employer and you say

look this is what somebody doing exactly

what i do with another company is being

compensated why am i making so much less

when they’re doing exactly the same job

some employers to retain you might go

well

you ask your employer what do you think

is fair they might not take you all the

way up to what the other person is

making they might not have the bandwidth

but they’re probably going to

offer something

so that starts with w-2 income the

importance of it for lending

then i’m actually doing a live stream

today when this comes out probably come

out tuesday so i’m not sure when you

release the video but

on the importance of side hustles yes

so

some people

think i don’t have time to develop a

side hustle and one of the reasons that

i developed the side hustle is because i

didn’t have time

i couldn’t continue to work overtime

because i was a single parent with three

kids i had to be at home

so this is going to sound weird and

super nerdy but i played online video

games

and i turned them into a side hustle so

i could be at home playing games with my

kids

they played too

but i was able to generate money from

that side from that game what are some

of the side hustles that you think

people overlook

well i first off i want to want you to

know that today is the

the best time ever to monetize your

passion

right you had a passion for playing

video games you want you your kids did

it was bonding time it was all of that

it was all good stuff and oh by the way

you were paid to do it

anybody can monetize whatever their

passion is if you have something that is

fun for you you have a decade of

experience with it i promise you you

could find a way to monetize it whether

it’s a youtube channel a book a course

an etsy page uh

whatever right i talked to todd baldwin

on sundays

we did the choices exercise with him

yesterday not only does the guy live for

free but essentially he got his

groceries for free because his side

hustle was secret shoppers

folks you are not thinking

enough about side hustles today

if you are stressed about money it’s

because your disposable income

sucks think about it a

never been a better time in my adult

life

than now to get a raise

if you’re in a profession or you have

non-competes or whatever and you can’t

move side hustle and for most of you do

both

do both

so we’re gonna you can increase uh top

line i have generated

four side hustles in the last two years

that produced thousands of dollars a

month

and i didn’t even i wasn’t even trying

uh it’s it’s just it’s it’s crazy what

you can do

today

however there is another thing most of

you and this is what i did because again

i couldn’t change i was in a

commission-based field i was already

very good at what i did and compensated

i went after an audited needs verse once

most of you

haven’t done that and most of you

most of you are treating wants like

needs but if you want to fix your

disposable income and be less stressed

go have a just go audit your last 30

days and then more importantly take that

audit to someone you love and care about

and go through it with them

because most of you are not being

um

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holding yourself accountable and let

them ask you questions

because again we took it down 50 it

wasn’t immediate right you hear me say

50 you think it’s immediate we got 10

almost right away and then it was a slow

grind

down as we found more and more things so

again if just if you’re stressed about

money

it is 100

because your disposable income sucks

step one increase the top line get a

raise change employers side hustle or

both

now let’s attack the expenses and you

have taught us about the impressiveness

of living for free when you did choices

about house hacking or todd baldwin or

spencer cornelia or the lumberjack or

anna

most of you are aren’t taking a step

backward and looking at your biggest

expense it’s not the damn latte

so talk about um you know live in for

free

you mentioned it

uh one of our biggest expenses is taxes

most people housing and taxes are their

top two expenses and it can change

depending on that situation

when you reduce or eliminate your

housing costs you’re impacting how much

you need to make

including the taxes

a very good point yeah so when i moved

from an apartment

i was paying 1500 a month i moved into

my duplex where i was then paying 300 a

month so it was a 1200 a month

difference

i’m in the 24 to 28 tax bracket

basically because you know it’s a

graduated tax system but that’s where my

income is at

so i needed to make an extra three

hundred dollars or so

so i had i had to bring in over eighteen

hundred dollars to have

the fifteen hundred dollars to pay for

housing correct you reduce that down to

three 300 a month and now i only need

what 380.

right so it’s a significant change when

you reduce or eliminate eliminate your

largest expense

and i talk to so many people that say i

can’t house hack because

here’s all the reasons and almost every

reason that they list off is a reason

they should yeah

i can’t house act because i have kids

the sooner you get on the property

ladder the more generational wealth

you’re going to create

so how many millions of families live in

apartments

is your family better than that

how many people could live in a small

multi-family which is like living in an

apartment but you get to pick the

neighbors

or buy a house

with an adu

not even sharing living space not

touching walls your separate driveways

single family house lending options

because house hacking isn’t always about

reducing or eliminating the housing cost

it could be acquiring properties with

owner occupied low down payment loans

rinse and repeat

and then it’s

you don’t have to house hack forever no

i mean

i’m probably going to because it’s

addicting but

i think it’s a good addiction

uh

lumberjack did it i think for 11 years i

think so yeah um

there comes a point and he did it really

smart when he said okay we’re going to

buy a house that will be our forever

home the cost of that mortgage has to be

the amount of the rent that we’re going

to get from the unit we’re moving out

technically i think in my book that’s

still living for free

because the asset you have is paying for

your housing

so you you

decrease the amount you need for your

freedom number because there are some

things we we we build up while we’re

my microphone

yep your sound went down really bad

you’re back i think i’m back now yeah go

ahead keep going okay that’s so weird it

did that the other day that last week

too yeah sorry about that folks we had a

10 10 second uh issue and i’m not

deleting it so let’s just keep going

fair enough um

and that completely threw me off so

that’s okay so yeah we were just talking

about the lumberjack living for free

basically right he did it it’s basically

a plan

so a lot of people

think they can’t house hack because

because because and again there are

probably reasons you should at least

think about it

and if you’re single there’s no excuse

and

again

if you’re if you are stressed about

money i promise you it is because of

disposable income

the biggest expense you have is housing

if you attack that life gets better

here’s the deal

most people spend somewhere between 25

and 30

of their income that’s the top line

number on housing you live for free

a your disposal income explodes

b to your point you got to make less

money

right for the same standard of living

it’s an amazing thing so

um

and again i have one more go ahead sorry

not please this is an unpopular opinion

so this is the opinion of

dion from dion talk not from michael

zuber of one rental at a time we’ll

we’ll see i’ll

maybe let’s

see if your plan is to retire

at or after 59 and a half

contributing to your retirement accounts

makes sense

personally

i hate retirement accounts the thought

of a penny being locked away no matter

what the tax benefits are because when

you do take it out it’s going to be

taxed at earned income which is one of

the worst forms of taxing

it’s not paying you cash flow now you’re

not gaining appreciation on multiples of

what you invest because you’re not using

leverage

you’re not getting principal pay down

where tenants pay off the mortgage so

for somebody who doesn’t invest

retirement accounts make sense

but if you are investing one rental at a

time the way i did

as soon as i stopped maxing my

retirement accounts

i was able to invest faster and make

work optional decades sooner yeah

so that’s my opinion

yeah what i what i would tell you is

it’s something similar right so i i

i always got the company match

but here’s my wrinkle while i was

employed

i borrow against my 401k every year

that’s my wrinkle i used my 401k as a

cheap down payment loan every year so

when i borrowed now again check your

plan and check your employer and blah

blah blah

my employer allowed me to to get um

it’s to select the payment payback

period so i always chose one year so i

bought one house a year for nine

ten years

as my 401k was the down payment

and then when i left

let’s just say i don’t have an ira

you can you can extrapolate what i did

with that money i don’t have a 401k

because again i’ve already i chose to be

done at 45 not 65.

right

so

great way to not make it your opinion

that retirement accounts suck which is

what i say yeah i didn’t say that i just

told you what i did

as much as i as much as i say that i

still contribute for the match i can do

the math that technically it’s 100

people call it free money and here’s my

wrinkle with that

if you have two companies to choose from

one offers a 401k and one does not check

what the wage is because the employer

had x amount of dollars to invest in

employees and my experience running a

nonprofit with a little over 1200

employers that recruit from us the ones

who offer a retirement match

pay less hourly

yes math it’s just math just mad well

dion how can people find you and get

this great conversations

right here on youtube deon talk

financial freedom my live streams are

tuesday afternoons 4 p.m uh

yep and just so you know this video

comes out at three o’clock today

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