Haven welcome to your tow vehicle Podcast yes the title is freaking click Bailey and that’s on purpose but what You’re going to find here is not what You usually will find on when you google Or youtube how to make money online or How to get rich online when people ask Me to kind of metrics that I use to get The business I often reply profit after Tax everything else is vanity metrics And to be honest is next it’s not Exactly true like I’m not gonna [ __ ] You here but the goal of this answer is To get people think that you don’t pay Your bills in backlinks and rankings That’s something that most SEO forgets Way too often many of us have that Vision of well financial success doing Online marketing but very few of us have An actual method to the madness so in Today’s episode we try to put together Logic into your ambitions and share with You a realistic way so which we can get Rich running an online business but Before we get going with this episode if You are on YouTube hit the subscribe Button and the bell icon so you don’t Miss any future episode any of you Listening to the audio go find us on YouTube because we’re uploading a lot More stuff there and we’d like to find You there now let’s get started with the Episode hey everyone welcome to the Etobicoke podcast
Mark is back it’s actually the second Episode since he’s back but I didn’t Like the first one so we trashed it so Welcome back yeah it’s just a warm-up it Was the wallet episode I had to set Myself up in Portugal as well we had Some technical issues with the videos Also yeah it’s like we have a backup I Guess but it wasn’t my favorite we do Actually throw quite a bit I think we Throw away more podcast and many other Podcasters like I would say like maybe 6 7 % of all the pieces have been thrown Away maybe and never released because Yeah we want this podcast to always be Quite actionable etc and when it doesn’t Get that way then then to just not Release it to be sometimes we just go Off on a tangent and rant about Something for half an hour and then yeah So that’s kind of what happened Yesterday yeah but let’s actually like Walk the talk and actually like go to The actionable stuff right so people Like basically people click here they Want to get rich promising people to get Rich is a hot promise to make and I Can’t promise that if you listen or Watch this episode you will get rich but We can try to break down What it takes to actually get rich from What we’re doing and essentially what You need to do is you need to make more Money than you need for what you need to
Spend right now for like paying for Everything you need paying for your Bills and you can use that money to Either upgrade your life or use that Money to try to get even richer and That’s essentially what we’re gonna talk About and these podcasts we’re gonna Have two main parts the first part is Going to be how to actually make that Money like the different models that you Can use with the Toyota size to make That money and then the second part is Going to be what to do with the money to Actually get rich from it because it Doesn’t just take to like make initial Income it actually does take money Management as well to really get rich And we are going to be slowly going into Personal finance as well I’m quite Curious to see how you guys are gonna React to that cuz I feel yeah it’s okay It’s super interesting by the way Because virtually none of the Entrepreneurs who I talked to in the Last year do any of this stuff they There’s this common for not the common Understanding that oh we’re running a Business that’s making a lot of money That’s that’s how we get rich just off Of off of that like all the other rules All the other best practices that normal People have to do to save and stuff Don’t apply to us well I that’s very Very wrong so hopefully we need to
Correct some of those misunderstandings Today yeah okay so let’s get started With the first part which is making the Money right and what we want to talk About is essentially the main ways Through which people acquire fairly Large amounts of capital that are Required to essentially do the stuff That we’re gonna talk about in part two So some people that are listening I know I already they’re like I know there’s a Lot of people doing really well Listening to this podcast and some People are still working towards it if You’re also working towards it by the Way we have a free webinar on starting Our exercise which is you know we’re Gonna talk about that you can just gonna Talk economy is going to be there if you Haven’t gone through it it’s a pretty Good training but let’s get going how do You make the money what’s the first Model so I just would just want to kind Of be clear about what we’re selling When we sell a course we’re selling like A business model attack take a strategy For how to start an authority site say What a lot of people I think promise or Or kind of are really trying to sell is Hey you’re gonna be you’re gonna be rich If you do if you just do this thing That’s not necessarily the case because I know a lot of people who have built Really successful authority sites built
Really successful online business or Offline businesses and they’re still Kind of dirt poor because they spend all Their money or they do lots of kind of Stupid stuff and I think that a lot of The mentality the entrepreneurs have Around this comes from is born of the Success that we hear about on the news For you know the guys who sold YouTube To Google for having a billion it was or You know tom from myspace who so who got 120 million and travels the world you Know these big like high-profile exits Which are very very very rare yes it’s Almost seen as this is the typical path Of an entrepreneur you work very hard Maybe get a bit lucky you grow your Business it doesn’t really matter what You do until then but at that point when Google comes in and buys your company You’re suddenly a billionaire and that’s That’s how you get rich and and that is How a handful of people have gotten rich But that’s not how most people get rich From from entrepreneurs by the way so Yeah you know in France when we do a When we do a dissertation the first Thing you have to do is define the terms Right so what is rich it’s a very Subjective thing but I would say that You have enough money that you will Never need to get any more money and you Can live the rest of your life only Spending the money that you currently
Have so you don’t need to learn anything More and you have a nice life that you You don’t feel bad about yeah it’s it’s It’s complete financial financial Freedom you you you wouldn’t have to Work another day in your life I mean Obviously different people have Different standards right you know if I If I want to go live in my my campervan And live off the land and you know I Could probably do that on like like Really very little money but if I I Don’t know I have a taste for the finer Things in life and I don’t know I know the heights ThreatCon bedsheets or something exactly The high threads are the right kind of Bed sheets and you know I don’t know Gambling in Vegas or whatever rich People do I don’t know very different But yeah the point is that the the Threshold or how you define it is is Subjective and it doesn’t matter where It is because and it also doesn’t matter How much money you’re making because the Tools and the ideas that we’re hopefully Gonna teach in this episode talk about They apply whatever your level so if You’re making a million dollars net Profit after tax per month you you Should still be behaving in said okay That you have more leeway but you should Still be investing and saving the same Way because as someone who’s making you
Know $1,000 profit for a month because The principles are are the same right You have money you you want to grow Money you want to grow your money you Want to make more money at least most People do so there’s there’s a lot to Learn here so we talked about this this Idea of like having the big exit retire Retiring over this it is possible right And there are there are people listening To this show right now I’m guessing who At some point in one day in the future This will happen to them for most people Though this is not the most realistic or The most likely of options you know You’re not gonna have that billion Dollar exit or you know ten million Dollar exit it doesn’t happen that that Frequently and there are many reasons For that just gets very difficult to Grow a company at that point it requires Lots different skill sets you know not Really entrepreneurial skills but like Bigger corporate management skills and You know there’s also amount of luck in It and things can change and you know There’s more competition all sorts of Stuff so it does that’s one kind of Approach another I guess common approach In online marketing and this has really Become quite popular in recent years as The kind of buying and selling of Websites has has really exploded and you Know Empire flippers and EFI and all
These these Just like absolutely grown the I say Them that grew the industry but they Have been at the forefront of this big Wave of investment and growth and people Wanting to buy websites and and and get Into the space so you as a website owner Have a real opportunity and loads of People in our community have done this They’ve sold websites for you know high Five figures six low six figures even Low Louis seven figures and that is a Very – money like very very sizeable and At least for most people like Life-changing you know you buy a house With that in in many place multiple Seven-figure testimonials in China Actually like it’s yeah yeah and you Know depending on where what yours kind Of threshold is for like financial Independence and being rich if you make You know a few million dollars then that That’s that’s you they’re quite quite Comfortably at least for a lot of people If you manage a monopoly yeah like if You do the right thing with your money If you don’t that it can go away quite Quickly as all right exactly but but the Kind of to get back to my point so a lot Of people a lot of entrepreneurs a lot Of marketers they’re very good at Starting a website getting off the Ground starting to make you know four Four figures low five figures per month
Like that’s that’s easy for them they Can keep doing that all day long and They do because they can they can sell The site lock in I don’t know mid six Figures and then start another site and Then just repeat this process sometimes Doing it multiple times concurrently and Every time they make a sale locking in Those those gains like get getting that Windfall that is how they’re really Acquiring lots and lots of money like Through like personally throughout their Life and building their own kind of net Worth so it’s also the kinda idea of Like reaching the plateaus which you Sometimes face when you’re when you’re Starting a site and it gets Progressively harder and harder to to Grow it so competing that like up ten Sites in an industry becomes like Sometimes requires like four or five Times more associates than actually Getting to make some money in that Industry you know yeah so that like Taking that approach and then locking in Your gains as you sell acai as you flip Aside and starting another one that’s That’s different another approach The other another one is also the Portfolio model where you kind of you Start multiple site sites you figure you Start a site you figure out the model I Don’t know maybe you’re really good at Google traffic or you’re you’re really
Good at monetizing with ads or whatever It might be you figure out that model You do a really good job of it and then You kind of repeat that so let’s say I Don’t know why duh I have a paintball Site so I’ll not start an airsoft site And then maybe I’ll move into I don’t Know like a kayaking site or mountain Biking site or different kind of sports Like something which is vaguely like Related and bit niche that you can kind Of like copy paste your existing Business into there and use the skills That you’ve acquired in terms of finding Writers or building links or building Sites researching sites and like repeat That process again and again and and Live off of as a portfolio coming to Live off of the profit the income from That so you’re looking to get to a point Where you’re fairly stable or you know Continuing to grow a little bit there’s Always ups and downs and each month like Bring in a good amount of net profit and Can lock in lock in some some gains that Way another no others are gone so so ya Know Another option is kind of like do one Thing really well and slowly Bank the Profit so with the very first model we Talked about it was this idea of like Having this big exit in order to to do That you need to be hyper focused and Just do one one business one site just
Do it really really well and maybe you Can kind of get to that level is like a Million things go in your favor if they Don’t you can still be really successful And you know ended up making good good Amounts of money good amount of profit But you’re not like necessarily selling That business for hundreds of millions Of dollars or whatever you’re just every Month making a really good amount of net Profit it’s a really stable business You’re really Kind of entrenched in your position it’s Hard for others to break into the market Because you figured everything out so Well and then you get to this point Where yeah you just like continuously Making a good amount of money every Month and then if you use that money Correctly invest it correctly it will Start growing even faster by itself and Then your wealth that your net worth Just like snowballs that way yeah the Thing is like how do you know how much You’re investing your businesses how Much you take away because essentially All these businesses I mean you know When you get a big exit I guess you make The decision at that point like let’s Say you do the monthly profit like how Like how do you split it up basically And how do you make that decision Because I’m sure it’s gonna be variable Yeah so it depends right in the early
Days when you’re first starting out I Would be tempted to reinvest everything You make and into growth but there’s a There’s a limited amount of money you Can spend that will have tangible Results so if you’re if you’re spending I don’t know five thousand dollars a Month on content great if you up that to Fifty thousand you probably see some Increase but will it be 10x increase I Don’t know if you if you up it to five Hundred thousand dollars of content a Month well first of all I think that Would be a royal pain in the ass to Manage all that yes but like the Marginal effect or the marginal benefit Of each extra dollar you’re spending on Content is not as big as it as the Previous dollar was kind of things so After that yeah exactly so you have to Kind of like manage it and just Generally speaking you’ll invest a lot More money and growth early on as your Site matures as your site starts to Stabilize and kind of you reach your Natural position in in Google and or in Life then you will you’re likely to Maybe stop spending so much money on Stuff that’s not moving the needle and We’ve been really guilty of that in the Past like just keep pumping money into Links or content for site and it’s just It stops moving after a while it stops Growing significantly after
Well at which case that that is the time – okay let’s reduce our costs let’s keep The lights on or keep keep it growing Keep doing a few things which are are Kind of having the most impact and then Maximize our profit and start actually You know paying some dividends or taking Some money out of the the company that Way so it’s a different way of counting About yeah I guess there’s like a Saturation point for every tactic right It’s like if you if you blog daily cool But like three blog posts daily like you Stuff like I think a good example in the Marketing industry in your Patel right He was releasing like three articles a Day didn’t realize that it was Saturating I mean he’s doing well with Us here obviously but it’s it’s like he Realized that and I’m still down X right So it gives you an idea of what it is if You say yeah actually I just want to say I say so I I know Gail you’re on you’re On Twitter What’s your handling and Gail breath and There’s a little yeah that’s it so while I was away on my honeymoon you tweeted About your dirty secret is that you Actually like listen to Neil Patel all Right Eric Sue’s podcast every day I was Like yeah I think there’s I think There’s an interesting point so we and a Lot of other marketers talk about Neil Patel and sometimes is kind of negative
Context but actually like there’s a lot Of things that he does right he just has This kind of like target on his head Because he’s I guess the biggest one of The biggest guy and people love to hate Hate him and like favor the underdog Instead but like a lot of man like a lot Of the stuff that they they talk about There and a lot of stuff on his blog It’s actually pretty good yeah I think He’s pretty good like this I was like Stop hating you it’s like I’m the World’s number one hater usually so so This is true yeah that means a lot you Know if you site from scratch which one Would you go for like I know I know it’s Kind of like outside of the toughy of The podcast but I also know people want To know do one thing really well and Slowly Bank the profit I think is the The way to go I think when people start Most people have this idea of having a Big exit and retiring For that but when you get into it the Practice the practicalities of that you Know even if you’re even if you’re Having a two million dollar exit or Something like that by the time you pay All your taxes and by the time like you Factor in all all your costs and your Brokers fees and your transaction cost In your ad you know whatever percent Escrow fee and all this kind of stuff That goes into it depending on where you
Live and where you pay taxes you you can Actually walk away with like quite a bit Less you know and respect especially Like you and I we’re business partners So that we like splitting that then Whatever we make fifty percent less so By the time you get you get down to it You know what can seem like just all the Money you’d ever need in your in your Life when you when you break it down it Ends up kind of not being quite enough And you know entrepreneurs they’re Always kind of like passionate to like Go and do the next thing and like start Some start something else so that’s also Something I guess you gotta think about As well so doing one thing well Basically and kind of taking a profit Every month okay What’s the one who is the highest Potential potential for making the most Money you can like you know okay so I Guess there’s two really good questions Here which you didn’t really ask but I Think you should have so one is like With what which model has the highest Likelihood of you being able to succeed That’s the mix in that case oh is it Okay thank you very much great So that is I would say like focusing on One stage flipping and starting over is I think once you get into it it’s Actually pretty easy to start a new Science and to make a little bit of
Money and flip the ball and just to keep Doing that over and over again Flipping it selling it after you’ve kind Of built it up it’s you know it’s all Gonna work a hundred percent of the time But it’s pretty a pretty reliable way to Consistently make some income yeah and Even if you fail one you don’t invest That much in one like it’s like you can Exactly Be loath but because you’re selling it So early on in its its life you know You’re never giving it the chance to Have that like massive massive growth Potential so to answer your question About which one has the highest Potential It’s either portfolio or doing one thing I would say doing one thing really well Because you you just get into such a Solid position with your company like There are I’m not gonna name them but There’s a there’s a course company that We’re we’re kind of like quite quite Good friends with and man they have just Like figured every single part of the Sales process they built their own Shopping cart the way they like on board Their customers they track everything They like optimize everything all their Ads are like they have software which Automatically increases our spend and Decreases at certain times if they’ve Just really like done a good job of like
Figuring out every part of their Business and someone else coming in to Compete with that may look at them and Think oh yeah I can make a course like This I’ll just throw on think if ik and I’ll make as much money as they do like No no you want you will take you years To to get even close to that and you Wanna have the focus that they have put Over on this and they’re not even so Cute so they have to have time for this Compound interest yeah okay well I guess I guess we’re done since you already Answered the higher chance of success Yeah it’s like my my vision is that if You want to really really really do well On the Internet it’s kind of like two Sides of saying there’s the there’s the Big media that essentially hammers large Quantities of content and kind of wins By flooding the internet with content so That would be like an example would be Like in the Technische maybe like CNET TechRadar that kind of this kind of like Big publications and gadgets as well Maybe this is gonna be publication and On the other side you have what I call Craftsman which are probably closer to The people that will be listening to This podcast because like the big media They really like big big big media like They spend millions in It’s per year on content and it’s just a It’s it’s mostly out of the reach of
More people most people who listen to This podcast so most people would go Into craftsman and you know I’m thinking Of like youtubers and people that are Like solo players but still like because They are able to create content that’s So superior to what these brands do they Get a massive amount of rich or mkbt on YouTube generated Maurice on like maybe Like iPhone do as well I think it’s a Really good guy for like if you want to See what entertaining reviews could look Like check these guys on YouTube you get The idea these guys are like one-man Bands etc but they’re doing really well And they’re getting very often more rich Like reviewing like the latest iPhone or Like the really really big items people Are waiting for than these big media Companies because they’re able to create Something that most people cannot do and I think that’s this doing really well Seeing and slowly Bank on the profits in Which I think I think on YouTube you can Find these people I mean like PewDiePie As well was like the biggest youtuber Forever it was just like one and then he Was just very good at engaging people so That gives you an idea of this but Anyway I think we can slowly close these How to make money section unless you Want to add something no it’s good Alright so now let’s talk about the fun Part which is what to do with the money
And before we talk about what to do We’re gonna talk about what not to do And it’s like it’s funny because like The first point I see on the list is a View of lifestyle creep which is Essentially of grading things in your Life and you know like buying something Like nicer stuff taking a bigger and Getting a nice car these kind of things Which to be honest are really difficult To come off like off like like let’s say Once you had a nice place it’s really Hard to get out down go to like less Nice place and it’s gonna like hurt your Ego is gonna make you feel like [ __ ] etc Or as if you never good in the first but You’d be completely fine with it so These are the lifestyle Clips things and Actually makes me think of when we Started making a bit of money in Budapest and then we used to go to the Steakhouse all the time like and I Explained it’s like not that much money It was like 60 bucks for new it Like this equivalent of like 200 pounds In hunt let’s say formula we’d used to Go there all the time and eventually I Was like you know what this doesn’t make Me happier and I just cut it off Completely but yeah basically like be Careful of the lifestyle crepe like it’s Easy to especially when you have gradual Increasing income like you know like you End up making a couple of bucks more per
Month etc you start like ah we can do This you can do this and then all of a Sudden like you’re spending all that Money and you staying trip over months And and that is like we’ll talk about Later but like this money that you have In your hand is an occasion to make more Money and essentially by buying these Stupid stuff that disappears after me Are the restaurants of nineties you’re Compromising a lot more money down the Line I guess anything else on the same Lifestyle Yeah loss so I think that I I think that If you’ve never had people around you in Your life that could be like family Friends parents who you know had good Money practices themselves then most Likely you’ve you’ve grown up not really Knowing to save or how to manage your Money or just spending all your money as Soon as you got a living paid paycheck To paycheck kind of thing and you know It works for some people but the Majority of people they would be better Off being a bit more more sensible about It and it really comes down to you Looking at what you’re spending your Your money on so that could be you know You says in spending it on expensive Steak dinners or something yeah you know You could you could say okay well you Know going out for a nice meal every so Often
That’s a nice experience that’s adding a Lot of kind of good experiences good Good fun to you to life but if you start Doing it you know three times a week how Necessary is that but you probably lose The specialness of it because that kind Of becomes your your norm and then you Know having a stake somewhere else Suddenly becomes like just a terrible Experience because it’s not you know Argentine Angus or whatever you know It’s not the end of the world 60s panic 60 bucks and something like That where it gets a bit more I guess Dangerous is If you lock yourself into a kind of Commitment on something a good example Of this would be a car loan or a car Lease which has like a fixed fixed term Of some kind you know it’s you’re locked In for three years and you ended up Paying you know two K a month for the I Don’t know BMW whatever it is these days That the kids are driving I don’t know That is especially because a car as well As like a depreciating asset so yes your Your strains and negative equity Straight away and there’s always like Terrible interest rates terrible Conditions car depreciates over time It’s generally just a bad idea the other Category of things would be I guess like Frivolous show-off II things I’m Thinking like fancy watches are like
Absurdly expensive clothes getting out Some ice cubes Yeah yeah not gonna clear any names but I’m sure some people know but you know I Mean so just just so we’re clear you Know there are one or two things that Like Pete some people will just go crazy For having like a super nice watches Like it’s really important to them and It brings them a lot of happiness and You know maybe they bought some classic Rolex and it actually holds its value Quite well because this it’s rare or Something I don’t know but the people Who go out and buy you know like a watch A month or you know something like that I never actually wear it all the time or You know you’re you can quite quickly Flush a lot of money down the toilet and If you just have that money sitting in Your car any kind think well I’ve made Loads of money I can afford to spend it Great but you just need to be very aware Of what the opportunity cost of that Money of spending that money is so if You’re not aware of any kind of Investments you have no investments you Just have all your money sitting in a Current account then you’re losing money Each year you know two to three percent Wherever you are to inflation so the Value of your money of that hundred Dollars in your bank account is 98 Dollars next year because you can’t buy
As much because prices have gone up Because that’s how generally how the World works for most of the time so yeah You have to be you have to be very kind Understanding about okay I’m spending 20 Grand on this this new custom suit or This Rolex or whatever fine I really Want it but what if I had actually Invested that money in the stock market Like what would that look like and then If you realize that maybe you could have Been getting six seven eight percent Return on that per year compounded over 30 years you suddenly you’re not giving Up 15 grand you’re giving up you know 150 grand or 10 100 grand or whatever You can very very quickly end up Spending what could have been you know Life-changing amounts of money for you Because you just didn’t know that it was A good idea to investor you didn’t know How to invest or where to invest that Money in order to grow or you never made That connection that you were giving That that up because he didn’t kind of Recognize it as a as a as a possibility Right So yeah beware lifestyle creep don’t buy Don’t buy stupid [ __ ] if it’s some like My my yeah I mean like there’s a reason Parents this is the reason parents drive This this kind of crap into into their Kids because there’s there’s genuinely Merit in this but I think the way people
Communicate certainly the way you know In school and you know even my parents To an extent communicated to me it Didn’t really look they didn’t really Sell it to me was oldest yeah what Really sold this to me was this is a Community called fire financial Independence retire early and most of The people in there are I would say like You know they have a standard kind of Office job or they they work for the Government or something and they hate Their jobs they don’t like what they’re Doing and their primary goal is to get Out of that and not have to work and the Way they do that is that they they live A really really frugal life you know They’re doing coupons further shopping And never eating out yeah like house Hacking all this stuff and you know There are To some of those things but they’re Living really busy labor these fun They’re saving as much as possible They’re investing like 70 percent of Their income or whatever it is and then Over you know 10 15 years they save Enough up so that they reach this Financial independence point where they Can take two they can take like three or Four percent of their investment out Each year and then that is significant Amount of money they can live off of That each each year you know if they
Have a million dollars in their in their Savings in their investment account they Can they can they have a thirty thousand Dollar a year that they can thirty forty Thousand dollars a year they can take Out and there’s also such plays on that You know you go live in Portugal or Bali Or something where cost of living is Much cheaper than you know San Francisco Or any like major city and you can kind Of play into some arbitrage there but That’s the idea that’s what can like Sold me on this this thing not that I’m Trying to like escape and retire and Thing but what excruciating you know It’s terrible yeah well what what’s what Was so powerful about I think what that Community has to share in the Methodology is it’s really when you Break it down it’s just the simplest Least amount of effort most efficient Way for the average person who doesn’t Know a crap-ton about finance and Investing to think about their money to Use their money to invest their money to Manage their money so as to set them up In the best possible long-term financial Position to be to have freedom in their Life and that that’s something which the Financial freedom something’s now I Understand that it’s a thing it’s like I’ve really really value it I mean I’m Definitely nowhere close to to being There yet but it’s it’s it’s something
That’s very much at the the back of my Mind it drives a lot of love kind of What I do and how I how I think about Upcoming expenses or things I I could Spend my money on like well I could do This or I could actually save it and Invest it and then get this amount of Return how much would that be worth in 25 years Something and then it kind of changes Your perspective on what you spend your Money on and just being a bit more not Necessarily frugal but being a bit more Aware of the implications of it you Start to prioritize different things in Your life like okay well actually do I Really need to spend all this money on a New car or can I get basically the same Thing that’s three years old for half The price and it’s gonna do you know Just the same good a job as other one And the price difference base is three Cars when you retire something or ten Cars you know it depends how long you Your tire and I know we talked about Retirement and all that say uh someone Who’s like listening to old fogies what The hell do you know I’m gonna be rich And some of my business to Google long Before that I farm 30 that’s usually Their goal Ontario 10:30 yeah I always I Always kind of ask people who are a bit Skeptical of it a few questions and it Goes something like this so do you plan
To live do you plan to be alive when you Are above the age of 60 65 most people Would say yes all right so do you plan On spending any money at all when you Are that age again most people would say Yes so if you answered yes to those two Questions then it’s probably going to Make sense that you invest in a pensions In some way I mean most countries the UK The u.s. most countries out there have Very good pension accounts that you can Kind of invest your money into the Growth will be tax-free some of the you Can sometimes take out lump sums when You retire tax-free or there’s there’s Lots and lots of tax benefits but They’re essentially they’re not some Like fuddy-duddy pension account which Some managers imagine these are just Like stocks and shares account so you Can invest wherever you want industry Investments that counts basically yeah Basically and when you kind of like Phrase it like that a lot of people like Oh actually that’s that sounds kind of Cool like I have a question like a lot Of people in this community would be Like I don’t care I’m like incorporating In Hong Kong or Singapore I don’t pay any corporate tax of Anything so it’s like who cares about The retirement stuff like I’d rather Have access to my money whatever I Wanted anyway I can just take advantage
Of like zero percent corporate tax like Tax havens you know so I mean that it Doesn’t change anything so however much Money you’re you’re making each month Wherever that is it still makes sense That you invest that money in some way That it’s gonna grow so if you have done All the offshore incorporation and You’re paying zero tax or a very very Low tax somewhere You’re still gonna if you’re making Money that money’s still gonna be Sitting in and accounts somewhere and if It’s just sitting in your car in account Or you’re holding on to the times or Whatever well think about maybe you Don’t need to make or maybe don’t need To are you’re not eligible to invest in A retirement account from from that Although I would say that you can also Invest you know your personal money in That doesn’t have to be from the company And if you want to like hide it from the Taxman or whatever or not but yeah I’m Not advocating that any sense but my Point is that at some point this money In which you make the profit from your Business it’s going to be sitting in an Account somewhere it could be your Company account it could be your I don’t Know offshore account or what wherever It is it’s sitting there and it’s losing Money each year because of inflation and Probably some exorbitant bank fees and
Stuff as well so why not actually take That money and invest it you know even If you’re like one of these people and I Know there’s a few people in the Community here who who just like hate Paying any kind of tax at all like yeah I’m gonna do everything I can go out of My way to never pay any tax fine do that And then take all take all the money and Put it in some other tax saving account That can invest it in the stock market In some kind of like low low cost index Fund that’s going to grow over the long Term and be relatively kind of stable Ish because if you do that versus just Leave it in the current account you’re You’re gonna make so much more money Over the course of your life and you’re Gonna have by the time you retire I mean Depending on how old you are now you’re Gonna have two three four five times as Much money so do you want more money or You want less money it’s kind of Question I would put I enough I wanted To like talk about something else like When you talked about the fire stuff I Think I think what’s interesting about That is that most of the business models We run I don’t know how long they would Last I know like it’s fairly long term But like you know what will Google look Like in 20 years how to tell right and So um if you don’t like basically the Money you make today you have no
Guarantee you’ll make the same amount of Gonna in like 15 20 years if you’re Young especially that code is shaped Like things are gonna change it lets run Your life and and it’s like there’s an Opportunity for that money that you’re Making to have an impact throughout your Life if you’re actually doing a good job With it versus just paying for your Bills right now or maybe paying for your Fancy lifestyle etc and I think that’s Kind of like the mentality of like Getting rich is like it’s stacking up It’s like stacking up things over time And eventually like the money like the Effort you’ve put 20 years ago is still Working for you while you’re still Making more while you’re working and That’s how you actually get rich and so Because of the business model that we Run like people who earn online Businesses I’m sorry it’s gonna change Like a tongue and not everyone’s gonna Survive the changes it’s like you know If you do a good job and you walking out Etc there’s good reasons for you to Sturb you around but it’s not a hundred Percent guaranteed that you will survive All changes etc and even if everything Went to [ __ ] but you’ve done a good job With your money this is still going to Have a lifelong impact to the point Where you either will not need a job or You will live still very well regardless
Of what your situation is after that and I think just that security is very Comforting for people and I think that’s The way to approach it as well yeah and That’s you know we’re talking about this Earlier it’s important that you do Invest heavily in in growing your Business in the very very early stages But at the the other end is also very Important that at some point in the not Long-term but like medium ish term you Actually start taking some money out of That business and realizing some Could could be when you flip it flip it On it could be a point where you you Know I cut some of your costs and lets You like try and maximize your profit a Bit more but if you’re just constantly Running a you know breakeven let’s go After growth growth growth at all all Cylinders then some points when you’re Not achieving that you there’s a chance That you can wake up one day you know You’ve been slapped by Google Facebook’s Changed all their algorithm for their Ads whatever else is going on oh these Things can can very rapidly change very Rapidly affect you and you you might Find yourself like without a business You wake up one day in ten years and Then realize that the last 10 years you Haven’t been saving or investing any of The money you could potentially been Making as a profit and then suddenly
You’re like oh [ __ ] do I have to go back And get another job now or like what I Do right and there’s there’s few things In life that scare me more than the the Prospect of having to even consider Getting a job somewhere I mean that’s Like I just refuse to let that happen so I guess I’m not that bad yeah so the the Idea of kind of growing or your net Worth over time and and gaining not Necessarily like even complete financial Freedom being able to live forever on Your investments and stuff but even like Getting a bit closer to that you know Even 10% 20% 30% of the way towards that It affords you just like such an extra Barrier and like level of comfort that You you wouldn’t have so you know if Something if something happened you Would it would even give you like time To figure out what’s your next that was In the the next thing you you want to do And you know this is another reason why Like in in our company we talked about There’s another podcast but like having This kind of emergency fund so you can Continue to operate for for a period of Time if you know Google takes away all Your traffic tomorrow or you know Something crazy That was some existential threat Materializes And you will have time to kind of Weather that and figure out what your
Next move is and grow some some Additional revenue out okay Elsewhere I wanted to say something I Started the podcast saying we’re gonna Be very actionable I want to get into it Tactics right now like what do people do Is the money what do we do like I have a Bunch of cash what do I do Okay so you need to first of all realize That investing that money in the stock Market in the market is a good thing It’s not like gambling in the roulette Table which a lot of people think it is I all just pick the stock does it go up Or down you can invest in the entire Stock market at once through something Called an index fund which is it’s Basically a single place that you can Invest and that that fund which pulls All this money buys automatically using Like an algorithm shares in every Company of every size in every country So that you’re you’re basically buying Exposure to the entire market and the World as a whole in general over the Long term no over the short term over The long term is is getting the economy Is growing right and barring any kind of World War 3 or alien invasion in which Case your monies may be the least of Memories yeah but barring barring Anything like that then you where was it Going with that the economy would grow Barring anything of that right that’s
The one yeah you’re the value of this Fund is going to increase over time over The long run aid it’s not gonna be a Straight line up it’ll go up and then it With down and they’ll go up and down Kind of kind of like your Google traffic Maybe but in general it’s gonna grow Over the long term and it’s a relatively Safe way of getting not an amazing Return you we’re not talking about like Thousand percent Bitcoin level of levels Of return you’re not trying to beat the Market here you just want to be the Market get the average because it’s very Easy it’s very low risk it’s bad A passive right you don’t have to become An expert stock investor warren buffett To pick these things you just say okay i Want to expose myself to the whole Market and their fund managers like Vanguard’s are really really popular one That have incredibly low fees like 0.2 Percent or 0.1 something percent and There are others where you know you go To some fancy Wall Street company and They’ll they’ll charge you 1% to manage It all actively what do you want like Let’s I wanna get started like do I go To my bank Do I go to do I go to a website where do I go yeah so any it depends which Country you’re in but most most Countries will have a lot of banks will Offer the ability to buy stocks and
Shares in the stock market and one of The one of the types of shares Essentially is a is a fund that you can Buy so I know in the UK most banks have Have that that functionality usually I Have to like sign up for a separate Service there are specialist Stockbrokers which you can open open Accounts with their even specialist Types of accounts like special tax-free Savings accounts pensions accounts to The type of account or just a general Account which you as an individual or Even you as a company can can open and Invest your money in that way but the The key is to pick one with as low cost As possible do some shopping around same Way you you know you don’t automatically Just buy the first airline fare that you Come across you know go to some Comparison sites and and see who’s Offering the lowest fees and go with That and kind of invest your money Slowly and steadily over the long run And just keep it in these kind of like Low cost low costing next one I think That’s the worst imagine you’ve been Writing up your whole life I just Crashes just when you intend to use that Money I think that we divorced actually Yeah it’s outside the scope of this this Podcast but when you get to the age Where you actually start to need to rely On that and you’re not contributing to
Anymore then you can get into what’s Called asset allocation where you you Stop investing so much into like the the Riskier stock market Through these funds and maybe like Invest more into funds which are buying Government bonds which are a lot more Stable though the upside is is a lot Less risky as well so the the can your Your the fluctuation of your net worth Will will deteriorate or will will be Less intense as you get to that age if You can allocate more of your your net Worth into into bonds as opposed to Stocks but again for most this just the Idea of the money that you make from Your business or from your clients or Your staffs company or whatever it is Take take that and invest it and invest It regularly and invest it kind of like Smartly again you don’t have to be a Rocket scientist all your money never do You like take all your savings may be Like boom index funds most of it yeah Yeah okay there there are so there are a Few things I like to dabble in as well You know like a few years ago I was like Okay let’s let’s pick up some crypto you Know some of it did well a lot of it Didn’t so you know but it’s fine it’s Like it’s a bit of fun you know there’s A lot of tensile upside as long as You’re not taking like 98 percent of Your net worth and putting it in
Something incredibly risky risky like Crypto you you generally be alright with The already recommend people go for like I said they’re just getting stuff like Maximum ten percent on like the fun Stuff and like 90% on other stuff a lot Of people into you know precious metals Like gold it’s kind of like a hedge Against crisis recession and stuff like That but again I don’t like to be super I’m not super smart I’m not a financial Expert I’m not trying to beat the market I’m just trying to get like a Semi-decent return without me having to Think about it without me having to Spend any time like checking you know The Wall Street Journal or you know any Of these financial times like what’s Going on like I don’t care about any of That stuff I just want to focus on my Online businesses and then when when They generate a profit I will allocate It or I will I will put it into these These kinds of investments and I will track once one thing I do do is Every month I will login to all my Accounts it could be like just money I Have in my bank account maybe look at my Mortgage account as well see how much is Left left they have to pay off in there And I will just have a spreadsheet and Look at that each month and hopefully That will go up over time it can go down As well but if you track it for long
Enough you will start to see that over The long run you know the money that you Have in these these kind of investments Especially will will tend to tend to go Up again over the long run okay anything Else that people should know uh yeah I Mean go and read it and look at the Financial independence subreddits there Different countries have have their own Ones as well but honestly there’s some So much cool stuff you can learn and Even if you spend you know a couple Hours looking at the basics you can you Can really come away with the knowledge Which will completely transform your Your financial future you know as Entrepreneurs we spend a lot of time Figuring out how to get more traffic how To increase our conversion rate so that We can make more money at the end the Day but we spend no time figuring out What to do with that money it seems a Bit kind of dumb when you think about it Like that you know I was gonna say you Know it’s like let’s say like two people Who are twenty five are starting Websites today and having exact the Exact same revenues per month but one Does it everyone doesn’t once we’re Gonna retire a multi-millionaire and the Other one’s gonna retire it was like Like six videos or something making like Like you know making the same income That’s the water difference that can
Happen here so he’s not hard core 9 Marketing but this is something online Marketers should know and if you want to Do well which is what we want the people To listen to this podcast and we kind of Get an idea of the lifestyle you’re Living etc if you wanted well then it’s The kind of stuff that you probably Should know is good to like be able to Develop it into that and that’s why we Did this episode today any final like Like do you have like a tip like Something people can do like right now So they improve the situation figure out What the best investment tax Three investment accounts are in your Country in the UK we have the ice Individual savings account and the SIP Self invested pension plan each country Has different things since like 401k and Roth IRA in the US and again each Country has different ones go figure out What those are and open those accounts Just having them open will at least give You the opportunity if you want to Invest some of you the some of your Money in a in a have a look at Vanguard Have a look at some other low end low Fee index funds that cover the whole the Market the expose you to all the market And then yeah have a look on Reddit Maybe if you have time read a book or Two about investing and kind of Financial freedom the wealthy barber
Yeah very good one as well Rich Dad Poor Dad another another good run a little Bit controversial that guy but some some Great lessons and in there at the same Time and good what’s that guy’s name Ramit sethi I will teach you to be rich That’s another really good or a lot of The principles of this kind of stuff he Talks about in in there and it’s just Just a great book like I’m a big room Eats at the fanboy actually so go check Out his his his his book at the same Time and yeah just keeping and keep in Mind um whatever your net worth it your Net worth its invested is you can at any Point withdraw three or four percent of It and you won’t reduce your capital Like your your you will that money will Come out of the gain minus inflation and So you can kind of like live off of that Perpetually like forever so figure out What what you need to live on or what You’d like to live on and then you know Divide by 3 percent to figure out how Much money you need to acquire and it’s Probably going to be a lot it’s probably Going to seem like a lot of money and to Get there you know six figures Definitely and then for a lot of people As well seven figures but over time over Over the period of your life it with Compound interest that kind of stuff Really can add up very quickly Especially as an entrepreneur because
You have something which a lot Of a lot of employees especially startup Employees maybe a bit differently but a Lot of employees in larger companies who Have jobs with no Commission and maybe They’ll get 7% bonus at the end of the Year if the company has a really good Year but generally they don’t have much Control over their income they can’t Increase their income the only thing They can do is reduce their cost that’s Why you see a lot of fire chat about Being super frugal and that as an Entrepreneur you have the ability quite Easily to increase your increase your Income increase your revenue increase Your profit so that kind of really opens Up a lot of doors which other people I Guess don’t have so you’re in a really Good position if you’re if you’re an Entrepreneur you’re working for start-up Okay well I asked for a quick tip I got A eight minute tangent but I’m gonna Take it thank you for listening if you Enjoyed this podcast we actually have a Training also on starting at our sites Which can help you increase your revenue Which in turn you can invest to to grow Your degree of capital so you can get This free training on Tony Hawk account Just go on the home page and the offer Should be there and if you are on YouTube or not YouTube actually don’t Forget to hit the subscribe button we
Are putting more con on YouTube this Year so we’d like you to be here and Thank you for listening once again we’ll See you next week for another episode a Bit more online marketing oriented have A good week [Music] You