WEBVTT 1 00:00:04.040 --> 00:00:08.400 Hey guys, good evening, Welcome to you all. Welcome to 2 00:00:08.720 --> 00:00:13.519 another space, money space with me caylu Aja. Of course, 3 00:00:13.519 --> 00:00:16.879 on this space, we're talking money, the economy, and finance. 4 00:00:17.039 --> 00:00:20.160 Want to take all those topics every week, make it 5 00:00:20.199 --> 00:00:23.160 easy for you guys to follow, for you guys to understand. 6 00:00:23.879 --> 00:00:26.199 So of course you become a better investor, you know, 7 00:00:26.640 --> 00:00:30.160 better taxpayer and the riots and all that. So yeah, 8 00:00:30.199 --> 00:00:33.840 so welcome to the session with me. This week, we 9 00:00:33.960 --> 00:00:38.520 are continuing our episode that we started last week when 10 00:00:38.520 --> 00:00:43.399 we talked around the financial health check. Essentially, what we're 11 00:00:43.399 --> 00:00:48.200 doing is trying to review your finances in twenty twenty 12 00:00:48.240 --> 00:00:52.320 five and of course setting you up for twenty twenty six. 13 00:00:52.359 --> 00:00:55.000 That's what we're trying to do this week. Last week 14 00:00:55.000 --> 00:00:59.159 we talk around the income and expenditures, and we talked 15 00:00:59.159 --> 00:01:01.880 around the entire your plan for you, how you want 16 00:01:01.880 --> 00:01:05.959 to essentially set up your entire entire financial plan, not 17 00:01:06.079 --> 00:01:08.560 just how to make money, but how you structure it. 18 00:01:09.120 --> 00:01:12.799 There's a structure to follow. You just can't save without 19 00:01:12.840 --> 00:01:16.280 doing certain things, so we give you that structure. We're 20 00:01:16.319 --> 00:01:19.480 gonna do a reveal of that structure again at this space, 21 00:01:19.959 --> 00:01:23.920 and then we're gonna then go into assets and liabilities. Right, 22 00:01:24.280 --> 00:01:27.599 last week we did income and expenditures. This week we're 23 00:01:27.599 --> 00:01:30.519 gonna go back and talk around just a summary of 24 00:01:30.519 --> 00:01:34.159 income and expenditures, and then we're gonna go into assets 25 00:01:34.239 --> 00:01:36.760 and liabilities, guys, so we can see how we're going 26 00:01:36.959 --> 00:01:41.519 income and expenses and then assets and liabilities. So if 27 00:01:41.560 --> 00:01:44.000 you're on YouTube, you are able to follow. And I 28 00:01:44.000 --> 00:01:48.000 did share the YouTube link earlier on Twitter, so if 29 00:01:48.000 --> 00:01:50.200 you're on YouTube, you can follow visually. But what I 30 00:01:50.239 --> 00:01:53.400 want to do is just to go over the what 31 00:01:53.560 --> 00:01:56.959 we talked around last week. Right, I'm gonna move this 32 00:01:57.000 --> 00:02:00.120 out of way. We talked around last week how you 33 00:02:00.239 --> 00:02:05.239 want to set up your finances, right, and like I said, 34 00:02:05.359 --> 00:02:07.439 bring the notepad because we're gonna do a lot of 35 00:02:07.599 --> 00:02:10.120 note writing which you can full up with when you 36 00:02:10.159 --> 00:02:13.000 get back home or look at the recording. So YouTube 37 00:02:13.000 --> 00:02:16.919 does the visuals, but you can just write down yourself 38 00:02:17.199 --> 00:02:20.439 on audio. So last week we said there are five 39 00:02:20.560 --> 00:02:22.599 stages to your financial plan. They are going to be 40 00:02:22.680 --> 00:02:25.240 five to your financial plan. The first is going to 41 00:02:25.319 --> 00:02:27.479 be you have to plan. You have to say what 42 00:02:27.560 --> 00:02:30.080 you want to achieve because everyone doesn't have a plan 43 00:02:30.759 --> 00:02:33.120 that it's going to be similar. If you are, for instance, 44 00:02:33.159 --> 00:02:36.120 fifty years old, you have a different financial plan from 45 00:02:36.159 --> 00:02:38.639 someone that is twenty five year old, So you cannot 46 00:02:38.759 --> 00:02:41.080 invest as if you are the same, even though you 47 00:02:41.159 --> 00:02:43.960 might be in the same country and have the same currency. 48 00:02:44.319 --> 00:02:46.719 But you've got to invest relead that you are fifty 49 00:02:46.759 --> 00:02:49.639 five years old, you have less time to retirement and 50 00:02:49.680 --> 00:02:52.159 the twenty five year old has more time to retirement. 51 00:02:52.560 --> 00:02:56.039 So your plan encompasses who you are, what you are, 52 00:02:56.159 --> 00:03:00.000 what's your risk profile, and how long you want to invest. 53 00:03:00.400 --> 00:03:02.639 That's the whole idea with your plan, right you want 54 00:03:02.680 --> 00:03:05.439 to say who you are, how old am I, how 55 00:03:05.479 --> 00:03:08.560 long do I have to invest? What's my attitude to risk? 56 00:03:08.599 --> 00:03:10.680 You've got to see that in the plan because what 57 00:03:10.759 --> 00:03:13.439 you're determining your plan determines the entire thing you're going 58 00:03:13.520 --> 00:03:16.479 to do going forward. So again, if you're older, your 59 00:03:16.479 --> 00:03:18.759 pad's going to be different from a younger person. You 60 00:03:18.800 --> 00:03:22.159 don't invest according to the instruments or are going to returns. 61 00:03:22.360 --> 00:03:25.240 Let me say it again, you don't invest according to 62 00:03:25.319 --> 00:03:29.319 the returns that are available. You invest according to your plan, 63 00:03:29.680 --> 00:03:32.080 So very very important. The first thing you do is 64 00:03:32.120 --> 00:03:35.439 to plan, Hey and say, hey, this is what i'd 65 00:03:35.479 --> 00:03:39.520 like to do with my investments. You want to write 66 00:03:39.560 --> 00:03:42.319 down the amount you want to be kind of specific, 67 00:03:42.599 --> 00:03:45.360 I would like to achieve x amount of money in 68 00:03:45.479 --> 00:03:49.199 my savings account by X amount of time. Then you 69 00:03:49.280 --> 00:03:52.639 want to put why at the end of that plant. 70 00:03:52.759 --> 00:03:55.240 When you put the why, if you can only answer why, 71 00:03:55.280 --> 00:03:57.319 you want to say, of course, just to wish, you 72 00:03:57.560 --> 00:03:59.479 just take it off because you're just saying I'd like 73 00:03:59.560 --> 00:04:02.560 to do this. When you put why, it all gives you. 74 00:04:03.199 --> 00:04:05.159 It gives a mental back into what you want to do. 75 00:04:05.439 --> 00:04:07.120 So you plan out. You say, this is what I 76 00:04:07.120 --> 00:04:09.800 want to achieve by this time, put a monetrit figure, 77 00:04:09.879 --> 00:04:12.879 and put a why. That number one plan. So again, 78 00:04:12.879 --> 00:04:14.719 if you're on YouTube, you can do follow and you 79 00:04:14.759 --> 00:04:17.839 can see we're talking about the second haund that your 80 00:04:17.879 --> 00:04:21.600 plan is to buy insurance. So what kind of insurance 81 00:04:21.800 --> 00:04:25.480 life insurance. But remember you can't ensure your life, there's 82 00:04:25.480 --> 00:04:28.920 nothing like life insurance. What you are ensuring is the 83 00:04:29.000 --> 00:04:32.560 loss of income. The loss of income if you lose 84 00:04:32.720 --> 00:04:36.399 your life. Why because you have dependence, right, So if 85 00:04:36.439 --> 00:04:38.839 you have dependence, you want to buy life insurance. That 86 00:04:38.879 --> 00:04:43.240 should ending happen to you your dependence will have the 87 00:04:43.399 --> 00:04:47.160 means to continue to enjoy that income that you would 88 00:04:47.160 --> 00:04:49.120 have lost. So the next thing you want to do 89 00:04:49.360 --> 00:04:52.000 after you plan is to buy life insurance. So if 90 00:04:52.000 --> 00:04:53.879 you don't have dependence, you don't have to do it. 91 00:04:54.199 --> 00:04:56.680 But once you have dependence, you've got to buy life insurance. 92 00:04:56.879 --> 00:04:59.480 And how do you buy life insurance? You buy life insurance, 93 00:04:59.519 --> 00:05:01.839 of course, probably the lab but this is that you have. 94 00:05:02.279 --> 00:05:03.759 So let's say you have a daughter you want to 95 00:05:03.800 --> 00:05:05.959 take to the school to have it, right, and you 96 00:05:06.079 --> 00:05:08.800 may you also have a mortgage. Right, what you want 97 00:05:08.879 --> 00:05:12.439 to do is to then buy life insurance that corresponds 98 00:05:12.480 --> 00:05:15.040 to the how much you owe your mortgage, for instance, 99 00:05:15.160 --> 00:05:17.000 or how what you will cost your daughters to go 100 00:05:17.040 --> 00:05:19.920 to university. Right, that's going to be your solmuch shut 101 00:05:20.000 --> 00:05:22.759 what you want to ensure against. You're gonna say, hey, 102 00:05:23.240 --> 00:05:25.399 I want to buy life insuranceports to twenty million or 103 00:05:25.399 --> 00:05:28.079 fifty million because they send anything happens to me, I 104 00:05:28.120 --> 00:05:30.680 want my folks to take that life insurance money and 105 00:05:30.720 --> 00:05:32.800 then pay for the mortgage or to pay my daughters 106 00:05:32.920 --> 00:05:36.759 go to school. So you ensure that obligation if anything 107 00:05:36.839 --> 00:05:39.720 happens to you, the insurance company pays you or pay 108 00:05:39.800 --> 00:05:42.959 to your estates or bays to your trust. The last 109 00:05:43.000 --> 00:05:45.120 week to mention a lot about trust, we said it's 110 00:05:45.160 --> 00:05:47.639 best to do a trust if you can go to 111 00:05:47.680 --> 00:05:50.720 a copy trustee, do a trust account and get your 112 00:05:50.720 --> 00:05:54.319 trust account to be your beneficiary. So you buy life insurance, 113 00:05:54.600 --> 00:05:57.399 you put a copet trustee as a beneficiary. Then you 114 00:05:57.399 --> 00:05:59.800 have a trust deed with the copy with the trusted 115 00:06:00.040 --> 00:06:03.560 say hey, with this is basically what I am going 116 00:06:03.639 --> 00:06:05.639 to do. This is who I want to take my 117 00:06:05.759 --> 00:06:07.800 fund shera gent didn't happen to me. That's what you 118 00:06:07.879 --> 00:06:10.439 do with insurance. Right, it's not like insurance. It's loss 119 00:06:10.439 --> 00:06:13.600 of income to your dependent students didn't happen to you, 120 00:06:13.839 --> 00:06:17.040 but your emergency fund. So number one is planned, two 121 00:06:17.079 --> 00:06:20.000 is insurance. Three is your emergency fund. You want to 122 00:06:20.040 --> 00:06:23.519 have an emergency fund of three to six months of 123 00:06:23.560 --> 00:06:28.160 your necessary expenses. You don't want to save or invest 124 00:06:28.519 --> 00:06:31.879 without having an emergency fund. And the magency fund is 125 00:06:31.920 --> 00:06:33.920 to watch a fund that you set up to pay 126 00:06:34.040 --> 00:06:37.439 for three months of your expensive student didn't happen to you. 127 00:06:37.519 --> 00:06:41.959 So let's what are your expenses? The necessary ones, food, right, 128 00:06:42.040 --> 00:06:43.920 those things that you must do. Even if you don't 129 00:06:43.959 --> 00:06:46.519 have money, you won't have a fund to pay for that. Right, 130 00:06:46.639 --> 00:06:48.439 it's going to be in cash or aar cash. You 131 00:06:48.480 --> 00:06:51.040 don't want to save, you don't want to invest by bit, 132 00:06:51.160 --> 00:06:53.319 kind of buy stocks with that money for your majesty 133 00:06:53.360 --> 00:06:56.560 fund three to six months. If it's fifteen million, of 134 00:06:56.560 --> 00:06:58.480 course I'm not going to have it one day, but 135 00:06:58.600 --> 00:07:01.759 have an account called fund. They want to save in 136 00:07:01.800 --> 00:07:04.560 that account. Right, so number one is planned to is 137 00:07:04.639 --> 00:07:07.560 insurance cre a magency fund for is going to be 138 00:07:07.600 --> 00:07:11.759 your retirement. You've got to plan for your retirement. That's 139 00:07:11.759 --> 00:07:14.800 the most important financial goal that you have because when 140 00:07:14.800 --> 00:07:17.720 you get older, you can't work. So it's not a 141 00:07:17.800 --> 00:07:20.079 question of I will kind of work when I'm one hundred. No, 142 00:07:20.160 --> 00:07:22.040 when you get to a certain age, you can't walk. So 143 00:07:22.160 --> 00:07:24.040 that's not going to be held enough to work. So 144 00:07:24.040 --> 00:07:26.480 you've got to plan for that retirement. Right. If it's 145 00:07:26.480 --> 00:07:28.759 going to be your four long key or your retirement 146 00:07:28.759 --> 00:07:32.360 Service account or your IRA, your roth IRA, whichever it is, 147 00:07:32.439 --> 00:07:34.759 you've got to have a retirement plan. If you want 148 00:07:34.759 --> 00:07:36.360 to buy a property and that property is going to 149 00:07:36.439 --> 00:07:39.879 pay you rental income, as a retirement plan, fantastic. Good 150 00:07:39.920 --> 00:07:41.800 do it. But you've got to plan for a retirement 151 00:07:42.000 --> 00:07:45.199 before you invest, so retirement is more of the long 152 00:07:45.319 --> 00:07:47.920 term investing. Right before you buy a bit coin, you're 153 00:07:47.920 --> 00:07:50.879 investing for your retirement. So then we recap. You be plan. 154 00:07:51.399 --> 00:07:54.240 You buy insurance to pay for your dependence. You buy 155 00:07:54.319 --> 00:07:57.199 take an emergency fund, then you do your retirement. If 156 00:07:57.240 --> 00:07:59.759 you have worked for a company, you go to the company, 157 00:07:59.800 --> 00:08:02.360 you do the match. You make sure you do the match. 158 00:08:02.639 --> 00:08:05.319 That means the company is saying, if you contribute five percent, 159 00:08:05.560 --> 00:08:08.199 we're gonna match five percent. Make sure you're doing five percent. 160 00:08:08.319 --> 00:08:10.759 Don't leave more on the table. It's only after you 161 00:08:10.759 --> 00:08:13.319 have gone one, two, three, and four that you can 162 00:08:13.480 --> 00:08:16.959 consider investing. So don't rush and invest. If you don't 163 00:08:16.959 --> 00:08:19.519 have an RSC account. Let me say it again, don't 164 00:08:19.680 --> 00:08:22.279 open an investment account at that buy and shares if 165 00:08:22.319 --> 00:08:25.000 you don't have a retirement service account, or you don't 166 00:08:25.040 --> 00:08:27.279 have a full one K, or you don't have an IRA. 167 00:08:27.560 --> 00:08:29.279 It's starts not how you do it, because I when 168 00:08:29.279 --> 00:08:31.560 then it happens to you. You be forced to sell 169 00:08:31.600 --> 00:08:33.759 your investments at a loss or at the price you 170 00:08:33.840 --> 00:08:36.879 don't want to pay for your emergency. So you've got 171 00:08:36.960 --> 00:08:40.200 to go through that process. One you plan, so you 172 00:08:40.320 --> 00:08:42.399 do insurance to you don't know what to say, fund 173 00:08:42.759 --> 00:08:46.159 for your retirement. Then five you invest. That's all we 174 00:08:46.279 --> 00:08:49.120 talked around last year, last week, and last week again. 175 00:08:49.159 --> 00:08:51.519 We then said, how when you want to do that, 176 00:08:51.600 --> 00:08:55.200 let's just do a quick cap on investments. Right on 177 00:08:55.279 --> 00:08:57.399 the income and exponentis we then want to talk about 178 00:08:57.399 --> 00:09:01.360 the income and exponentials in detail. You want to track 179 00:09:01.759 --> 00:09:05.080 every single coble. This is now your income side all 180 00:09:05.200 --> 00:09:08.039 talked about last week, just to really recap. On the 181 00:09:08.039 --> 00:09:12.600 income side, you want to track every single every single expense. 182 00:09:13.000 --> 00:09:16.879 You track all the expense, then you categorize that number two. 183 00:09:17.080 --> 00:09:18.799 So if you track all your expense, you say I 184 00:09:18.840 --> 00:09:21.440 bought to do your I'm want to mister Biggs. You know, 185 00:09:21.840 --> 00:09:25.799 then I enter home. All that is feeding, but you 186 00:09:25.840 --> 00:09:29.480 can categoriate it into feeling outside and feeling inside right 187 00:09:29.519 --> 00:09:32.639 off or heir at home. So you track the expenses 188 00:09:32.799 --> 00:09:37.159 and your income you categorize right. Then you basically want 189 00:09:37.159 --> 00:09:40.320 to say which is my active income, which is my 190 00:09:40.480 --> 00:09:42.440 passive income? Last week I told you guys, you have 191 00:09:42.480 --> 00:09:45.559 to have four categories on that income and expend shows 192 00:09:45.600 --> 00:09:48.440 four categories. The first category is going to be your 193 00:09:48.519 --> 00:09:51.279 active income, which is income you make when you are 194 00:09:51.360 --> 00:09:55.000 actively engaged. So you go to work. That's active income. 195 00:09:55.120 --> 00:09:58.120 That's easy. You get your paycheck, that's active income, but 196 00:09:58.159 --> 00:10:01.399 it's only called passive income. Passive income is you're not 197 00:10:01.440 --> 00:10:04.919 at work, but you get paid. For instance, your your rent, 198 00:10:05.240 --> 00:10:08.320 your own rent, you own a building, the day your rent, 199 00:10:08.399 --> 00:10:10.120 you're not there per se, but the building is in 200 00:10:10.159 --> 00:10:13.039 an income for you. Or you've bought a bond and 201 00:10:13.080 --> 00:10:15.879 the bond is essentially giving you a coupon income, or 202 00:10:15.919 --> 00:10:19.399 your bought the share is paying your dividend. Other passive income, 203 00:10:19.799 --> 00:10:23.799 so you're active and your passive iototal income right, active 204 00:10:23.879 --> 00:10:27.759 and passive. Same with expenses. The expenses you must make, 205 00:10:27.799 --> 00:10:30.600 which are your necessary expenses, is what we call non 206 00:10:30.960 --> 00:10:34.559 discretionary expenses. But they also expenses that you can decide 207 00:10:34.600 --> 00:10:37.120 not to make, for instance going on a holiday or 208 00:10:37.279 --> 00:10:41.279 just buying a new dress. The idea, your entire reason 209 00:10:41.279 --> 00:10:44.159 why you are working is you want to convert active 210 00:10:44.200 --> 00:10:47.320 income to passive income. So the point I'm making this 211 00:10:47.639 --> 00:10:50.399 if you work for a company that paying your salary, 212 00:10:50.960 --> 00:10:54.039 the whole idea is for you to convert your salary 213 00:10:54.240 --> 00:10:58.559 active income to passive income income from your own investment. 214 00:10:58.879 --> 00:11:01.080 So I say you work for a company A, they 215 00:11:01.080 --> 00:11:03.840 pay your salary, you buy shares, you buy bonds, you 216 00:11:03.879 --> 00:11:07.080 buy land, you buy property. The whole idea is you 217 00:11:07.120 --> 00:11:13.919 can only retire when your passive income, not passive income, 218 00:11:14.600 --> 00:11:18.600 can pay your expenses. That's what retirement is, when your 219 00:11:18.679 --> 00:11:22.559 passive income and pay your expenses. So look at Bill Gates, 220 00:11:22.639 --> 00:11:25.320 look at a lot of mask. They are rich because 221 00:11:25.360 --> 00:11:27.960 they get passive income. If they decide not to go 222 00:11:28.080 --> 00:11:31.519 to work tomorrow, they can still pay their expenses from 223 00:11:31.559 --> 00:11:34.399 your investments. So the reasoning is if you are if 224 00:11:34.399 --> 00:11:38.639 you can't pay your expenses from your passive income, you're 225 00:11:38.679 --> 00:11:41.919 not yet middle class, you're not yet rich. That's your objective, 226 00:11:42.399 --> 00:11:46.639 your generatal not passive income from your active income that 227 00:11:46.720 --> 00:11:48.639 then pays your expenses. That's a whole idea of what 228 00:11:48.720 --> 00:11:51.200 we're doing today. So if a passive income does not 229 00:11:51.320 --> 00:11:53.159 meet your expenses, it's not about a meeting in the 230 00:11:53.240 --> 00:11:56.679 day one. That's your goal, that's your financial goal. How 231 00:11:56.720 --> 00:11:59.600 can I go from passive to active? Right? You don't 232 00:11:59.600 --> 00:12:01.600 want to say, Okay, this year I'm going to grow 233 00:12:01.679 --> 00:12:04.600 my passive income by five percent, not to returns out 234 00:12:04.639 --> 00:12:06.679 to volume. I want to grow my volume returns by 235 00:12:06.720 --> 00:12:08.919 five percent. And that becomes a go for you a 236 00:12:09.000 --> 00:12:12.240 year in year out right because if you grow your 237 00:12:12.279 --> 00:12:16.799 passive income, that means you are able to retire. So 238 00:12:16.960 --> 00:12:19.200 as I hope you can see the plan setting up 239 00:12:19.360 --> 00:12:22.440 right now for us, we've talked around your five step 240 00:12:22.559 --> 00:12:25.720 plan right where you have to plan. You have to 241 00:12:25.759 --> 00:12:28.840 buy insurance, then you have to then go and buy 242 00:12:30.960 --> 00:12:35.200 the retirement before you talk around investing. That's the plan 243 00:12:35.360 --> 00:12:37.720 you want to follow. Then when we now go to 244 00:12:37.759 --> 00:12:40.240 the investment side, you have to do it that way. 245 00:12:40.279 --> 00:12:43.960 You've got to record your income and expenses. I ear 246 00:12:44.000 --> 00:12:48.519 of capture your active income, your passive income. Then you 247 00:12:48.600 --> 00:12:55.039 capture your expenses, the discretionary expenses and the non discretionary expenses. 248 00:12:55.080 --> 00:12:58.559 Those non discrissionary expenses are the important things there, because 249 00:12:58.559 --> 00:13:02.919 you've got to have your passive income, the money you 250 00:13:02.960 --> 00:13:06.440 make when you're out there paying your income. That's your 251 00:13:06.519 --> 00:13:10.240 financial goal. That's your overall financial goal. That for everyone 252 00:13:10.360 --> 00:13:13.759 listening to me, everybody, even a most that's your goal. 253 00:13:13.799 --> 00:13:17.000 Make enough passive income to pay your expense. That means 254 00:13:17.039 --> 00:13:19.799 you're rich. That means you can retire. So this week 255 00:13:19.840 --> 00:13:22.039 when we're talking about the second side of the balance sheet, 256 00:13:22.039 --> 00:13:24.840 which is going to be our balance sheet right where 257 00:13:24.879 --> 00:13:28.799 we're not bringing in assets, our bringing liabilities. And we 258 00:13:28.919 --> 00:13:31.879 also have a chat for that for our income side. 259 00:13:32.120 --> 00:13:35.000 For that is for our asset side. So the same thing, guys, 260 00:13:35.159 --> 00:13:37.720 but the asset side. You want to draw up a 261 00:13:37.759 --> 00:13:42.159 little line that there's going to be four characters also 262 00:13:42.360 --> 00:13:45.240 on our assets and liabilities. And I don't worry, guys, 263 00:13:45.240 --> 00:13:47.559 if you have a question, just ask. Once I get 264 00:13:47.600 --> 00:13:50.320 through our you can you can request to speak. I 265 00:13:50.399 --> 00:13:52.440 do just put you on qu If you have a 266 00:13:52.559 --> 00:13:55.639 question again, ask on the DM or just because for 267 00:13:55.720 --> 00:13:58.279 the MIC, and I'll ask you to speak. I prefer 268 00:13:58.360 --> 00:14:00.559 you ask because I don't have to read it. That 269 00:14:00.639 --> 00:14:03.039 sort of makes me slow down to the read. So 270 00:14:03.080 --> 00:14:06.159 if you want to ask a question, just request to speak. 271 00:14:06.159 --> 00:14:09.039 I'll queue you up the ones. I'm done, but not 272 00:14:09.120 --> 00:14:11.720 five minutes. That just makes you speak and then you 273 00:14:11.759 --> 00:14:14.600 can just ask the question. So, for instance, on the 274 00:14:14.679 --> 00:14:16.480 asset size is going to be the same thing. We 275 00:14:16.559 --> 00:14:20.480 have four characters. Four characters of the asset side. Number 276 00:14:20.600 --> 00:14:23.480 one you want to have what you call the income 277 00:14:24.000 --> 00:14:29.480 generating assets, income generating asset, and of course the non 278 00:14:29.559 --> 00:14:33.919 income generating asset. So any asset you own today, you 279 00:14:33.960 --> 00:14:37.799 want to classify it as an income jining asset or 280 00:14:37.840 --> 00:14:40.879 as a non income gaining asset. So you have to 281 00:14:40.919 --> 00:14:45.559 ask yourself it's your car an income generating asset. We're 282 00:14:45.600 --> 00:14:48.519 not talking accounting accountant to say your car is an 283 00:14:48.600 --> 00:14:50.720 asset end up story. We're talking for a short plan. 284 00:14:50.799 --> 00:14:54.200 If I plane, it looks at how that asset affects 285 00:14:54.200 --> 00:14:56.879 your cash flow. So if you have a car and 286 00:14:56.960 --> 00:14:59.960 you spend more money on the mechanic on that car, 287 00:15:00.039 --> 00:15:02.480 that has a liability not only an asset to you 288 00:15:02.600 --> 00:15:04.960 to your cash flow. So you want to ask yourself, 289 00:15:05.039 --> 00:15:09.320 is that car an income jainting asset or a non 290 00:15:09.399 --> 00:15:12.279 income chanting acid. That's why you want to spasify that car. 291 00:15:12.519 --> 00:15:14.519 It's still going to be an asset, but it is 292 00:15:14.519 --> 00:15:17.600 it giving you income or not giving your income. That's 293 00:15:17.799 --> 00:15:20.840 the classification. So you take your phone, you take your car, 294 00:15:20.919 --> 00:15:23.480 you take your stocks, you take your house, everything you have. 295 00:15:24.039 --> 00:15:26.480 For instance, you have a house in your village. You're 296 00:15:26.600 --> 00:15:30.480 from this tiny village, callbably your half here in abvious state. 297 00:15:31.080 --> 00:15:33.279 You have a home in our half here, so that 298 00:15:33.399 --> 00:15:37.039 home is worth in an accounting set. Used fifty million 299 00:15:37.120 --> 00:15:40.879 miles to build that home. Fantastic. That's an asset in accounting. 300 00:15:41.480 --> 00:15:43.440 But for us in financial time, I want to ask 301 00:15:43.480 --> 00:15:46.960 you a question. Is that how generating income for you? 302 00:15:47.200 --> 00:15:49.960 Or is that how saving you expensive? Which is the 303 00:15:49.960 --> 00:15:52.720 same thing. If the answer is yes, is an income 304 00:15:52.960 --> 00:15:56.159 chanting asset, so you put it on your incombregating asset side. 305 00:15:56.679 --> 00:15:58.840 If it's not, it's a non income jutent as just 306 00:15:58.879 --> 00:16:01.480 keep it aside so it's not it's not an asset, 307 00:16:02.279 --> 00:16:07.159 but it's not generating your income. Similar liabilities, there's an interest, 308 00:16:07.440 --> 00:16:12.320 interest bearing liability or a non interest bearing liability. It 309 00:16:12.440 --> 00:16:14.159 has to be one of them. So if you want 310 00:16:14.200 --> 00:16:16.000 to start a business and you go to the bank 311 00:16:16.039 --> 00:16:18.039 and the bank gives you a loan of fifteen your error, 312 00:16:18.480 --> 00:16:21.919 that's an interest bearing liability. You have a loan on 313 00:16:22.000 --> 00:16:24.879 the bank because it's an interest bearing liability. But what 314 00:16:24.960 --> 00:16:27.559 if your partner gave you that money and your partner 315 00:16:27.639 --> 00:16:29.639 said you have to pay me interest for the next 316 00:16:29.679 --> 00:16:33.120 ten years. It's a liability you still owe your partner. 317 00:16:33.279 --> 00:16:37.480 But if you're not paying your partner interest, there's a 318 00:16:37.600 --> 00:16:41.159 non interest bearing liability. So again, if you're a YouTube, 319 00:16:41.240 --> 00:16:43.279 the visual is there, But if you're a YouTube, just 320 00:16:43.399 --> 00:16:45.919 have those four columns. All you want to see is 321 00:16:45.960 --> 00:16:50.759 that you want to match your income generating assets with 322 00:16:50.960 --> 00:16:56.159 your interest bearing liabilities, which means if you borrow money, 323 00:16:56.799 --> 00:17:00.440 you want to only buy assets that generates and income. 324 00:17:01.120 --> 00:17:02.960 So if you're going to build a house in your 325 00:17:03.039 --> 00:17:06.680 tiny village you know healfiare, and that home is going 326 00:17:06.759 --> 00:17:12.400 to be a non income or non expense saving asset, 327 00:17:13.000 --> 00:17:15.599 then you don't want to borrow money from that. You 328 00:17:15.640 --> 00:17:19.480 want to build a house with your savings. So your 329 00:17:19.839 --> 00:17:23.079 savings to build you a house that it's not going 330 00:17:23.119 --> 00:17:28.079 to generate you interest liabilities. On the flip side, you're 331 00:17:28.079 --> 00:17:30.240 going to build a house in a pot city. You 332 00:17:30.279 --> 00:17:33.160 want to be built a warehouse and a pot city, 333 00:17:33.519 --> 00:17:35.559 and you want to go borrow money from the bank. 334 00:17:35.960 --> 00:17:39.279 The bank is going to charge your interest income. That 335 00:17:39.519 --> 00:17:43.359 interest income should then be tied to an asset that 336 00:17:43.480 --> 00:17:49.559 is generating income. So the interest bearing liability is going 337 00:17:49.599 --> 00:17:53.720 to be tied to an asset generating income. So your 338 00:17:53.759 --> 00:17:59.839 IgA your income generating assets is tied to your ib 339 00:18:00.160 --> 00:18:04.880 hell interest bearing liabilities. The problem most people have on 340 00:18:05.000 --> 00:18:11.079 their flaendship plan is that they borrow interest bearing liability 341 00:18:11.160 --> 00:18:14.000 is like a credit card, and then they use that 342 00:18:14.119 --> 00:18:20.960 credit card on a non income generating activity. So if 343 00:18:21.000 --> 00:18:22.920 you take your credit card and you go on a 344 00:18:22.960 --> 00:18:27.759 holiday to Spain, right, you are generating income interest on 345 00:18:27.839 --> 00:18:31.359 your credit card, so it's an interest bearing liability, but 346 00:18:31.400 --> 00:18:35.559 the holiday doesn't give you income, so you're mismatching your 347 00:18:36.359 --> 00:18:40.640 income your interest bearing liability with sometimes not going to 348 00:18:40.680 --> 00:18:44.160 generate any income for you. I give a better example. 349 00:18:44.440 --> 00:18:46.519 If you have a company you want to go buy 350 00:18:46.559 --> 00:18:49.079 a car, the MD wants to go buy a card 351 00:18:49.119 --> 00:18:52.200 to use. If the empty buys a card like a 352 00:18:52.279 --> 00:18:55.319 merced is better to taking to home, taking back to work, 353 00:18:55.799 --> 00:19:00.480 that's an interest bearing liability being used to buy an 354 00:19:00.519 --> 00:19:04.079 asset that does not generate income. He does bother may 355 00:19:04.119 --> 00:19:06.200 say this bands to go home and back, But what 356 00:19:06.319 --> 00:19:09.400 if you bought the delivery van in this case has 357 00:19:09.440 --> 00:19:14.599 taken a loan and interest bearing liability to buy an 358 00:19:15.160 --> 00:19:20.119 income generating asset. So that's fantastic because the income from 359 00:19:20.160 --> 00:19:23.519 the van, the liverly van will pay off the liability 360 00:19:24.119 --> 00:19:26.680 from the bank to buy the van, you want to 361 00:19:26.799 --> 00:19:28.799 match it that way, that's what you want to do. 362 00:19:28.839 --> 00:19:32.359 This is not accounting. This is your cash local financial planning. 363 00:19:32.400 --> 00:19:35.400 You are trying to business under. Say that any liability 364 00:19:35.519 --> 00:19:39.000 I have, any loan I have, has got to be 365 00:19:39.160 --> 00:19:44.000 tied to an income that is generating assets. That's all 366 00:19:44.000 --> 00:19:46.240 we're saying. I'm not asking to go change your balances 367 00:19:46.279 --> 00:19:49.680 for your company. Keep that, but your own personal financial 368 00:19:49.720 --> 00:19:52.759 health check. This is what you're doing the same way. 369 00:19:52.839 --> 00:19:54.319 If you want to go on a holiday, you should 370 00:19:54.319 --> 00:19:57.759 have saved enough so you are not incurring an interest 371 00:19:57.839 --> 00:20:03.799 bearing liability to pay for a non generating asset. It's 372 00:20:03.799 --> 00:20:06.839 to the point. So with income, we're talking about your 373 00:20:07.000 --> 00:20:12.000 passive income paying for your expenses. With your balance sit here, 374 00:20:12.519 --> 00:20:17.359 we are talking about that your income generating assets should 375 00:20:17.400 --> 00:20:22.319 pay for your interest bearing liabilities. Of course, with the 376 00:20:22.319 --> 00:20:24.920 balance reet it has to balance, so it depends on 377 00:20:24.960 --> 00:20:27.759 your assets, and your liability is going to be your networth. 378 00:20:27.880 --> 00:20:31.880 If you have more liabilities, then you have a negative 379 00:20:32.119 --> 00:20:35.359 net worth. That's what accounting would say, right, But the 380 00:20:35.440 --> 00:20:39.640 financial planet is a bit different. We understand in financial planet, 381 00:20:39.720 --> 00:20:42.960 when you are younger, it is okay to have a 382 00:20:43.119 --> 00:20:48.000 negative net worth. Why because when you are younger, you 383 00:20:48.160 --> 00:20:53.440 have no IgE, you have no income generating assets. Imagine 384 00:20:53.440 --> 00:20:56.440 twenty five year old boy in Nigeria, he has no assets. 385 00:20:56.519 --> 00:20:59.079 He just got a job in a bank, he's in 386 00:20:59.200 --> 00:21:01.920 a salary. They have no assets. Well, how is he 387 00:21:01.960 --> 00:21:04.200 going to buy a house a car? How he's going 388 00:21:04.279 --> 00:21:07.400 to borrow to buy that land to buy that car. 389 00:21:07.440 --> 00:21:09.119 So what's he gonna do? Is it going to go 390 00:21:09.200 --> 00:21:14.319 take interest bearing liabilities to buy his asset? He does 391 00:21:14.839 --> 00:21:19.240 inconcurating or not incompurating, we don't know yet. Because he's younger, 392 00:21:19.359 --> 00:21:22.319 with less income, he's going to borrow a lot. But 393 00:21:22.400 --> 00:21:25.000 when he's borrowing, he has to remember that if it's 394 00:21:25.039 --> 00:21:28.839 paying interest on that loan, he should divert that loan 395 00:21:29.359 --> 00:21:34.599 to an asset that generates income or saves expenses. Borrow 396 00:21:34.680 --> 00:21:37.119 to go on off some other in Greece, that's not 397 00:21:37.160 --> 00:21:40.279 an our chat here. If he does that properly, as 398 00:21:40.279 --> 00:21:44.480 he gets older, answers to earn more, he then gets 399 00:21:44.480 --> 00:21:46.880 more assets. The asset he bought when he was younger 400 00:21:47.000 --> 00:21:52.000 now start to generate income for him or appreciate in value. Right, 401 00:21:52.279 --> 00:21:55.000 so he then can use that asset to pay down 402 00:21:55.079 --> 00:21:58.519 his net his negative network. What we mean is as 403 00:21:58.519 --> 00:22:03.480 the assets generate income, it pails liabilities, his networks not 404 00:22:03.519 --> 00:22:07.039 begin to go positive. That's the plan, that's the goal 405 00:22:07.279 --> 00:22:10.880 in the asset balance sheets. We want to buy going 406 00:22:10.920 --> 00:22:15.160 to negative network. We're allowed to go to negative network 407 00:22:15.200 --> 00:22:17.920 at the very very beginning of our careers where we're 408 00:22:17.920 --> 00:22:20.240 any variability, but that's the only you can buy an asset. 409 00:22:20.599 --> 00:22:22.880 But as we start to transit towards the end of 410 00:22:22.920 --> 00:22:27.359 our term in investing, investment, working life, we can no 411 00:22:27.440 --> 00:22:32.240 longer borrow moneies to invest because we now have a 412 00:22:32.400 --> 00:22:35.839 shorter compounding period. Let me see it again. The older 413 00:22:35.920 --> 00:22:39.720 you get, the less debt you should have because you 414 00:22:39.839 --> 00:22:43.680 have a shorter compounding period to pay back. So twenty 415 00:22:43.759 --> 00:22:47.039 five year old guy can borrow for thirty years issued 416 00:22:47.079 --> 00:22:50.319 a thirty year bond. But if you are fifty five 417 00:22:50.480 --> 00:22:52.480 you have I want a you going to retire, maybe 418 00:22:52.559 --> 00:22:57.480 sixty five, maybe seventy. You have shorter times to compound 419 00:22:57.720 --> 00:23:01.400 your income to pay back. So it's very, very important 420 00:23:01.400 --> 00:23:06.960 that you start to invest early in income generating assets, 421 00:23:06.960 --> 00:23:09.880 and when you do them, they might not be income 422 00:23:10.079 --> 00:23:12.920 generating assets when you do them. That's why you have 423 00:23:13.000 --> 00:23:15.400 to have that long term plan to say, hey, my 424 00:23:15.480 --> 00:23:18.599 long term planning twenty five years is to retire. Where 425 00:23:18.640 --> 00:23:21.880 am I going to buy land today? In twenty five years? 426 00:23:21.920 --> 00:23:24.200 It will retire. That's why you come back. It's all linked. 427 00:23:24.480 --> 00:23:27.480 Your plan is liks, your income taatement, that thing to 428 00:23:27.480 --> 00:23:29.599 you about. Let me stop here, because there's a lot 429 00:23:29.680 --> 00:23:32.079 to talk about, the whole lot. But let me take 430 00:23:32.079 --> 00:23:34.359 a few let me pause, take a few questions, and 431 00:23:34.359 --> 00:23:36.880 then we'll just go on to it again. Guys, if 432 00:23:36.880 --> 00:23:39.119 you have the time, try to get my book. All 433 00:23:39.119 --> 00:23:42.759 this stuff I'm talking about are all in my book Planning, income, 434 00:23:43.039 --> 00:23:44.920 balance sheet, They're all in my book. I will try 435 00:23:44.960 --> 00:23:48.039 to do a screenshot of the book balance sheet I'm 436 00:23:48.079 --> 00:23:50.480 talking about my book, so we can also follow visually. 437 00:23:51.039 --> 00:23:54.599 Let me just take a few questions. I've got she 438 00:23:54.960 --> 00:23:57.880 she's a varm MP. How are you doing? Thanks to 439 00:23:57.960 --> 00:24:03.200 hanging in there with me. What's going on? Mh, she's 440 00:24:03.240 --> 00:24:09.039 about how you doing? I'm doing. I'm doing fine, Thank 441 00:24:09.160 --> 00:24:13.880 you very much. I'm transit. When I get down, I 442 00:24:14.000 --> 00:24:23.319 was fantastic. All right, gotcha, let's do let's do into integrified. Integrified, 443 00:24:23.680 --> 00:24:33.559 don't get that right, integrified. How you doing, sir, fantastic? 444 00:24:33.599 --> 00:24:36.079 What's in your mind? Oh? 445 00:24:36.519 --> 00:24:40.000 I want I wanted to give it. 446 00:24:42.079 --> 00:24:50.000 No, Yeah, planning the future for your children? Yeah, are 447 00:24:50.079 --> 00:24:56.279 you there's something in the area of life of both. 448 00:24:58.160 --> 00:25:00.480 Is something that happened only when you're dead. 449 00:25:00.519 --> 00:25:02.640 And again, I think they're. 450 00:25:02.480 --> 00:25:04.039 Just a kind of lisplace. 451 00:25:04.559 --> 00:25:11.240 So if I want to plan, what's. 452 00:25:12.640 --> 00:25:12.839 Plan? 453 00:25:14.079 --> 00:25:16.519 And I can't think if if. 454 00:25:16.079 --> 00:25:18.160 I don't want to plan itself, I want to. 455 00:25:19.599 --> 00:25:19.839 Plan? 456 00:25:19.960 --> 00:25:26.200 Is that okay? If you know me that they getting 457 00:25:26.319 --> 00:25:35.799 love to have more comprove over you to here. Yeah, 458 00:25:35.960 --> 00:25:38.640 that's a great question. So again, so last week we 459 00:25:38.759 --> 00:25:41.519 talked around life insurance and I said life insurance is 460 00:25:41.559 --> 00:25:45.319 a very very unique investment because it's the only investment 461 00:25:45.440 --> 00:25:49.039 you have today where you can put in one nyra 462 00:25:50.039 --> 00:25:55.039 and you automatically have got a million the summer shot. 463 00:25:55.359 --> 00:25:58.200 If you go to lifsurance company, you say I want 464 00:25:58.279 --> 00:26:02.119 to buy life insurance for five million, and they tell you, okay, 465 00:26:02.160 --> 00:26:04.000 we're going to sell life chants for five million, but 466 00:26:04.039 --> 00:26:07.440 you've got to pay us a thousand dora every month. 467 00:26:08.319 --> 00:26:10.839 Once you pay the first one thousand hora, you are 468 00:26:10.920 --> 00:26:14.920 worth five million immediately. You don't have to accumulate five 469 00:26:14.920 --> 00:26:17.039 millions to be worth. Once you pay the first premium, 470 00:26:17.039 --> 00:26:19.440 you're worth five million. So it's the unique in best 471 00:26:19.440 --> 00:26:21.559 and I don't want to use your advantage. So your 472 00:26:21.640 --> 00:26:23.480 question is how can you then use that? Like how 473 00:26:23.519 --> 00:26:26.240 can you plan for your kids? I like life insurance 474 00:26:26.279 --> 00:26:29.119 because what you do is this. You have to go 475 00:26:29.240 --> 00:26:32.319 to a lawyer and write what's called a trust deed. 476 00:26:33.160 --> 00:26:37.319 It trusted is just your instructions. You say, if anything 477 00:26:37.400 --> 00:26:40.079 happens to me, I would like my money to go 478 00:26:40.160 --> 00:26:43.759 towards the payment of my child's education in this school. 479 00:26:44.160 --> 00:26:47.279 After my child has graduated, I like the rest of 480 00:26:47.279 --> 00:26:49.359 the money to go to my church, or to my 481 00:26:49.400 --> 00:26:53.319 grandmother or to my auntie and all that. You can 482 00:26:53.440 --> 00:26:56.799 specify your instructions in that trusted. Now, when you do 483 00:26:56.880 --> 00:27:00.319 that trusted, you then go to a corporate t trust. 484 00:27:01.000 --> 00:27:04.519 You have festuties, you have aarm trustees there, you have 485 00:27:05.799 --> 00:27:08.799 that many of them. Just go to sec and google 486 00:27:08.920 --> 00:27:11.279 trust companies in Nigeria. You go to that trust company 487 00:27:11.319 --> 00:27:13.599 and say I would like it to be my corporate trustee. 488 00:27:13.920 --> 00:27:15.880 You will pay them a fee to be a corporate 489 00:27:15.920 --> 00:27:18.440 trust So you give them that trusteed. Then when you 490 00:27:18.519 --> 00:27:22.240 buy assets The beneficiary of your assets will not be 491 00:27:22.359 --> 00:27:25.599 your children or your nextorf king to be that corporate trustee. 492 00:27:25.960 --> 00:27:28.119 So look at what we've done now. If you buy 493 00:27:28.640 --> 00:27:32.039 insurance company, if you buy insurance policy, or you buy 494 00:27:32.039 --> 00:27:35.480 a building, the building is owned by your trust. The 495 00:27:35.480 --> 00:27:39.079 beneficial of the trust is a corporate trustee, inventing hassles 496 00:27:39.119 --> 00:27:41.880 to you. The corporate trust is simply then pays the 497 00:27:42.000 --> 00:27:45.359 education of your child or runs that company building. They 498 00:27:45.359 --> 00:27:48.319 will rent out the building, collect their fees, make sure 499 00:27:48.319 --> 00:27:52.519 it is nice, pay the rental, pay your education, give 500 00:27:52.559 --> 00:27:55.759 your kids an allowance. That's why you hear trust babies. 501 00:27:55.799 --> 00:27:58.240 Trust funds like the use off shore the same thing. 502 00:27:58.240 --> 00:28:01.160 You were complicated about it. So it cost you some money, 503 00:28:01.319 --> 00:28:03.319 but it gives you a peace of mind. Because when 504 00:28:03.319 --> 00:28:06.160 you write your will, your will can be challenged, but 505 00:28:06.200 --> 00:28:08.400 you can really challenge a trusted You can't challenge an 506 00:28:08.440 --> 00:28:12.279 insurance company. Beneficiary and benefit for insurance company is out 507 00:28:12.319 --> 00:28:15.920 of your probate. It's not debatable. If you put something 508 00:28:16.000 --> 00:28:18.000 aside and your trusted it's not only going to be 509 00:28:18.039 --> 00:28:20.400 part of your asset because not owned by you anymore. 510 00:28:20.839 --> 00:28:22.559 If you put a building that you own and a 511 00:28:22.599 --> 00:28:25.400 trust deed, it's no longer owned by you. Because it's 512 00:28:25.400 --> 00:28:27.119 not owned by you can have a challenge just to 513 00:28:27.160 --> 00:28:30.640 the point. And also the new tax laws, if you 514 00:28:30.720 --> 00:28:34.720 earn income manuity, that income is not taxable. So if 515 00:28:34.759 --> 00:28:37.400 I want to give my daughter money, I just buy 516 00:28:37.440 --> 00:28:41.680 her an annuity. The annuity pays he annuities like an insurance 517 00:28:41.680 --> 00:28:44.480 company paying you a fix of money. If she's getting 518 00:28:44.480 --> 00:28:47.160 money money from insurance company, she's not paying tax on 519 00:28:47.200 --> 00:28:50.240 that income. So it's a lot of vales for me. 520 00:28:50.599 --> 00:28:52.839 We're not really taking that virtue of the insurance company 521 00:28:52.839 --> 00:28:55.480 in Nigeria. So it goes to insurance company and say, 522 00:28:55.960 --> 00:28:58.279 I heard this. Please explain to me what this guy 523 00:28:58.359 --> 00:29:00.400 is saying. Give you more details. How what does it 524 00:29:00.440 --> 00:29:04.240 cost me to give you specific information? Then you can 525 00:29:04.359 --> 00:29:12.319 roll with it. Does that make sense? Great? Any follow 526 00:29:12.359 --> 00:29:20.640 up questions on that? You're fantastic. Thank you someone I've 527 00:29:20.640 --> 00:29:22.640 got that high. 528 00:29:27.079 --> 00:29:33.400 I'm going I want to ask a question. I operate this. 529 00:29:33.599 --> 00:29:36.519 My groupings back and they recently told me that my 530 00:29:37.839 --> 00:29:42.759 eligibility with them is for melia and use that as 531 00:29:43.200 --> 00:29:44.079 an emergency for. 532 00:29:45.119 --> 00:29:50.599 Not actually not really, because you can if what if 533 00:29:50.599 --> 00:29:53.920 you go to Marin, tell you it's not canceled. You know, 534 00:29:54.240 --> 00:29:55.880 it's not your money. Yes, you have to take that 535 00:29:56.000 --> 00:29:59.160 loan for it to be in your possession. And when 536 00:29:59.200 --> 00:30:01.720 you take that loan, your pain interest so it can't 537 00:30:01.720 --> 00:30:04.640 get a majesty fund. Your majesty fund is what you 538 00:30:04.839 --> 00:30:08.319 have that is cash or near cash that you can 539 00:30:08.440 --> 00:30:12.880 use to cover immediate emergencies. Someone calling to that and says, hey, 540 00:30:13.119 --> 00:30:16.119 come to the village tomorrow. Something's happening. You can't go 541 00:30:16.160 --> 00:30:18.640 to a microphone and say how to take that loan. 542 00:30:18.920 --> 00:30:20.920 Then they give the loan, then pay to your card. 543 00:30:20.920 --> 00:30:22.799 Then you have to wait for a manager to sign no. 544 00:30:23.519 --> 00:30:25.920 So it's a goal for you to build three to 545 00:30:26.000 --> 00:30:29.200 six months out as your as your amenity fund. But 546 00:30:29.480 --> 00:30:32.119 I wouldn't say loan, it's what you use any fund. 547 00:30:32.160 --> 00:30:37.559 I wouldn't say that. Thank you, You're very welcome. Do 548 00:30:37.599 --> 00:30:42.039 you have an amenity fund right now? Okay, So that's 549 00:30:42.079 --> 00:30:43.880 gonna be a key to go for Like we said, 550 00:30:43.880 --> 00:30:47.880 the firstest plan right then. Of course, second is the 551 00:30:48.160 --> 00:30:50.640 what we do your insurance? Do you have an insurance? 552 00:30:50.680 --> 00:30:52.160 Then you don't have to really answer if you don't 553 00:30:52.200 --> 00:30:53.960 want to both. Second is you want to have an 554 00:30:53.960 --> 00:30:57.039 insurance scheme set up for your family attendance. You want 555 00:30:57.079 --> 00:30:59.079 to make sure you have an insurance scheme set up 556 00:30:59.079 --> 00:31:02.480 for them, not for your life. Both fully lack obligations 557 00:31:02.519 --> 00:31:05.039 you have. So if you have a house, you want 558 00:31:05.039 --> 00:31:07.759 to make sure that you are buying insurance that can 559 00:31:07.880 --> 00:31:10.480 pay off the mortgage of that house. Then but the 560 00:31:10.519 --> 00:31:12.880 true you won't of course, buy your immediacy phone. Get 561 00:31:12.880 --> 00:31:16.279 that set up three to six months of your necessary expenses. 562 00:31:16.559 --> 00:31:18.519 Of course before I get to retirement. Do you have 563 00:31:18.559 --> 00:31:26.839 an RSA four? Okay, you have all that? I'm yeah, 564 00:31:26.880 --> 00:31:28.880 so you have a lot of goals in six in 565 00:31:29.039 --> 00:31:32.440 it you have a lot of goals. Yeah, exactly, fantastic. 566 00:31:32.480 --> 00:31:34.480 So I appreciate you calling and yeah, get that done. 567 00:31:34.519 --> 00:31:37.519 It's don't wait, don't see if I don't have money, 568 00:31:37.559 --> 00:31:39.640 won't do it. Get it, stand on it, you know, 569 00:31:39.720 --> 00:31:45.319 early enough, and then see what happened. Yeah, appreciate you. 570 00:31:45.640 --> 00:31:48.680 All right, fantastic, Thank you the guys on YouTube. Let 571 00:31:48.759 --> 00:31:52.079 me see get Yeah, so I gotta slow down and 572 00:31:52.079 --> 00:31:54.519 read the question here. That's why I prefer the audio, 573 00:31:55.720 --> 00:32:00.799 just to emphasize. Could you just emphasize on the non 574 00:32:00.960 --> 00:32:04.000 interest bearing yes, So let me just put that up again. 575 00:32:04.680 --> 00:32:08.079 So just to just to summarize the asset side we're 576 00:32:08.079 --> 00:32:11.119 talking about, we haven't got to the network. We're saying 577 00:32:11.119 --> 00:32:13.599 that on your asset sides. We're not saying a car 578 00:32:13.759 --> 00:32:16.319 is not an asset. The car is an asset. But 579 00:32:16.559 --> 00:32:23.039 is that car income generating asset or in non income 580 00:32:23.200 --> 00:32:27.039 generating asset. That's the question. The car is always an asset, 581 00:32:27.079 --> 00:32:30.279 but is that car generating income for you or not 582 00:32:30.359 --> 00:32:32.240 chinting income for you? There's no problem if it's not. 583 00:32:32.680 --> 00:32:36.799 But if it's not, tag that car as a non 584 00:32:36.839 --> 00:32:41.920 interest generating asset so that you match it with non 585 00:32:42.519 --> 00:32:48.039 interest bearing liabilities. You have to target because when you 586 00:32:48.079 --> 00:32:51.559 do your balance sheet in accounting, they don't only care 587 00:32:51.680 --> 00:32:54.839 if it is to just do your total income, this 588 00:32:55.039 --> 00:32:56.920 is your total liabilities, and then they give you a 589 00:32:56.960 --> 00:33:00.400 network of But in personal finance wants you to separate 590 00:33:00.960 --> 00:33:04.279 the income or the asset that I've given from the 591 00:33:04.519 --> 00:33:07.000 asset that I'm not giving you income. When you do 592 00:33:07.079 --> 00:33:09.519 it that way, what you're going to find is that 593 00:33:09.559 --> 00:33:12.920 you can tell how much of your assets are being 594 00:33:13.160 --> 00:33:16.319 funded by liabilities. And I think, like we said, there's 595 00:33:16.400 --> 00:33:20.440 no problem if you are in debt as long as 596 00:33:20.440 --> 00:33:24.920 the debt is generating or will generate assets for your 597 00:33:25.000 --> 00:33:28.279 income for you in the future. So if I borrow 598 00:33:28.359 --> 00:33:32.359 money today to buy a house in Lecky, no problem, 599 00:33:32.720 --> 00:33:37.359 because I'm in debt. So I have an interest baying liability, 600 00:33:37.839 --> 00:33:42.119 but that interest bare liability is tied to my income 601 00:33:42.640 --> 00:33:46.799 generating assets. So for ten years of my life, I 602 00:33:46.880 --> 00:33:50.279 might have a negative network because I have more liabilities. 603 00:33:50.440 --> 00:33:55.079 But that's fine because the liabilities that is funding the assets. 604 00:33:55.160 --> 00:33:59.400 You know, my interest liability is funding my income asset. 605 00:33:59.680 --> 00:34:05.200 That's fine. As I get older, the asset appreciates in value, 606 00:34:05.880 --> 00:34:09.119 the value of the assets, the income from the asset 607 00:34:09.199 --> 00:34:13.000 now starts to pay down that loan because I no 608 00:34:13.079 --> 00:34:16.199 longer pay rent, So the funds I would have used 609 00:34:16.199 --> 00:34:19.480 to pay rent will then go to pay down the liability, 610 00:34:19.920 --> 00:34:22.599 so that my balance sheet or my income state and 611 00:34:22.679 --> 00:34:26.239 then looks better. So it's not a question of debt. 612 00:34:26.400 --> 00:34:29.679 Debt itself is not a problem. The problem we have 613 00:34:29.800 --> 00:34:35.440 with debt is that we are borrowing interest being labilities 614 00:34:35.440 --> 00:34:40.920 and attaching them to non income generating assets. So it's 615 00:34:40.960 --> 00:34:43.840 a good place for us to surgerate into debt management. 616 00:34:44.239 --> 00:34:46.920 Every time we talking around assets and liability. Is the 617 00:34:47.000 --> 00:34:50.760 main problem with asset is how to accumulate them, And 618 00:34:50.880 --> 00:34:52.599 we can talk We're going to have a separate space 619 00:34:52.639 --> 00:34:55.800 on how to accumulate assets? Which assets told you, But 620 00:34:55.920 --> 00:34:59.159 we're gonna do more of assets and location. What should 621 00:34:59.199 --> 00:35:02.719 you buy if you have a goal today of retiring 622 00:35:03.079 --> 00:35:06.079 in five years? What should you buy than if you 623 00:35:06.079 --> 00:35:08.719 have a goal to retire in fifteen years. That's going 624 00:35:08.800 --> 00:35:12.039 to be assets a location. We'll talk around that. But 625 00:35:12.079 --> 00:35:16.480 what about debt management? How can you manage your death? 626 00:35:16.559 --> 00:35:20.320 Because now, if you have built up a balance sheet 627 00:35:20.679 --> 00:35:25.920 that has more interest being in blities than your assets, 628 00:35:26.000 --> 00:35:29.280 your income bearing asset, you're going to have a problem. 629 00:35:29.840 --> 00:35:32.360 So what should you do if your balance sheet is 630 00:35:32.440 --> 00:35:36.559 more in debt? Of course, you've got to reduce those debts, right, 631 00:35:36.639 --> 00:35:39.159 You've got to bring down those debts. So how can 632 00:35:39.199 --> 00:35:42.000 you manage your debt? So let me give you the 633 00:35:42.039 --> 00:35:45.079 way you do it you're supposed to do it. Let 634 00:35:45.119 --> 00:35:48.840 me just real quick, Tnaji, you want to ask a question, 635 00:35:48.880 --> 00:35:51.119 real quick enough, I'll talk around debt management. Can Ju? 636 00:35:51.599 --> 00:35:57.719 I know the talk is kind of unstable, can Jo? Yep? Yeah, 637 00:35:57.840 --> 00:35:59.239 I'm not sure I can hear you too. Well, a 638 00:35:59.239 --> 00:36:05.840 little bit of audio, but trying to see, uh, what's 639 00:36:05.880 --> 00:36:09.480 the question is? Okay? 640 00:36:09.559 --> 00:36:14.440 So I was trying to find out about something we've 641 00:36:14.440 --> 00:36:18.719 been debated in my household. So it's uh getting another 642 00:36:18.840 --> 00:36:24.440 property right or paying down or paying off the debt 643 00:36:24.519 --> 00:36:25.559 of the part what we have. 644 00:36:27.079 --> 00:36:28.039 Are you gonna. 645 00:36:27.760 --> 00:36:33.880 Classify paying down your debt as you know, financially bring 646 00:36:33.880 --> 00:36:38.360 your move or getting another one so that I can 647 00:36:38.440 --> 00:36:41.119 have someone read that and you know have that. 648 00:36:43.000 --> 00:36:46.159 Yeah, I hear you, good, great question. It's gonna go 649 00:36:46.320 --> 00:36:49.719 back to really how is the what are the numbers? Saying? 650 00:36:50.679 --> 00:36:53.840 If you can get a tenance that can pay your mortgage, 651 00:36:53.840 --> 00:36:57.639 it's always a good idea because now you have the asset, 652 00:36:57.960 --> 00:37:01.639 but you have no liability, in which case, if you 653 00:37:01.679 --> 00:37:03.719 go back to our table, it's like saying you want 654 00:37:03.719 --> 00:37:08.360 to get a new income generating asset without the corresponding 655 00:37:08.400 --> 00:37:10.639 liability because the liability is not going to be taken 656 00:37:10.679 --> 00:37:13.679 over by the tenant. So, if I understand your question, 657 00:37:14.000 --> 00:37:18.599 you already have one interest bearing liability, which is your home. 658 00:37:19.119 --> 00:37:22.079 Are you guys living in that home, the one the 659 00:37:22.119 --> 00:37:23.920 one you're paying you guys pay a mortgage in your 660 00:37:23.960 --> 00:37:29.440 current home right now? Yeah, so it has canceled out 661 00:37:29.639 --> 00:37:33.840 your your your interest bearing liability with your mortgage is 662 00:37:33.880 --> 00:37:37.920 being canceled out with your income. Right this new home 663 00:37:38.000 --> 00:37:39.840 you want to get, the simple question for you is 664 00:37:39.840 --> 00:37:43.599 that can you get a tenant that can pay the liability? 665 00:37:43.599 --> 00:37:46.039 That's what you want to ask yourself. If you can 666 00:37:46.079 --> 00:37:49.639 get a tenant to pay that liability? Fantastic because you've 667 00:37:49.840 --> 00:37:51.119 got a new liability. 668 00:37:54.039 --> 00:37:55.000 Yeah, I mean we. 669 00:37:54.960 --> 00:38:01.920 Can get Or the question where you don't you reliable? 670 00:38:04.440 --> 00:38:06.440 Which is which is the answer? Which is the exactly 671 00:38:06.559 --> 00:38:10.880 answer I say, if you can create an asset without 672 00:38:10.920 --> 00:38:13.360 creating a liability, it is always the answer is always yes, 673 00:38:13.519 --> 00:38:16.280 Which is not the problem you now have, because the 674 00:38:16.360 --> 00:38:19.119 problem is that you cannot you you are you are 675 00:38:19.239 --> 00:38:23.559 unable to create that asset without creating a liability. You've 676 00:38:23.559 --> 00:38:25.320 got to make sure if you don't do it this way, 677 00:38:25.320 --> 00:38:27.880 you're gonna lose that house because you can't pay the liability, 678 00:38:28.519 --> 00:38:31.280 so you lose that asset. You see what I'm saying. 679 00:38:31.599 --> 00:38:33.960 The answer really it comes down to if you can 680 00:38:34.079 --> 00:38:37.960 get a tenant that can cover that liability or if 681 00:38:38.079 --> 00:38:40.440 it goes south, you guys have got to have an 682 00:38:40.480 --> 00:38:43.480 emergency fund of at least six months of that tenant, 683 00:38:43.599 --> 00:38:45.880 that mortgage. You've gotta have it in a bank sitting 684 00:38:45.960 --> 00:38:49.360 somewhere to say, e, anything goes wrong, we can pay 685 00:38:49.440 --> 00:38:52.760 six months of this house mortgage without waiting for a tenant. 686 00:38:52.840 --> 00:38:55.199 If you guys have that sort of savings, it might 687 00:38:55.239 --> 00:39:00.000 be a good idea. Because again, remember in the West, 688 00:39:00.039 --> 00:39:02.280 I was talking about the West, I was talking about Nigeria. 689 00:39:02.280 --> 00:39:06.280 What are we talking about now? So because in the 690 00:39:06.320 --> 00:39:11.239 West they do non non recourse loans, right, So you 691 00:39:11.280 --> 00:39:13.280 can walk away from the property if you can't keep 692 00:39:13.280 --> 00:39:16.559 it anymore. So if it's a non recourse loan, you 693 00:39:16.599 --> 00:39:19.119 don't you don't have any liability of it, you don't 694 00:39:19.119 --> 00:39:22.320 have any continent libriies. Idea might come after your after 695 00:39:22.360 --> 00:39:25.119 your building. Right, So what I would say, think about 696 00:39:25.280 --> 00:39:29.800 setting up an LLC to buy the property. Right, set 697 00:39:29.880 --> 00:39:32.159 up an l l C to buy the property, then 698 00:39:32.199 --> 00:39:34.800 get a tenancy to pay rent to the l So 699 00:39:34.840 --> 00:39:39.239 that way it's an arms length transaction. If the tenancy fails, 700 00:39:39.760 --> 00:39:43.079 walk away, close the company, declare bankruptcy on the company, 701 00:39:43.599 --> 00:39:46.480 move on. So the bank ticks, the bank takes the building. 702 00:39:46.559 --> 00:39:55.239 You start afresh. I'm gonna do risk management for you yet. Okay, fantastic, man. 703 00:39:56.039 --> 00:39:57.960 I know someone joined. I don't know where it is. 704 00:39:58.159 --> 00:40:00.360 I know someone just joined. I'm not sure if it's 705 00:40:00.920 --> 00:40:03.719 Gabriel Death. I'm not sure. Did you just join? 706 00:40:05.000 --> 00:40:05.360 Yes? 707 00:40:05.559 --> 00:40:08.800 I just yes, I can hear you. 708 00:40:08.840 --> 00:40:14.320 Go ahead, okay, please asking whether I can give you 709 00:40:14.599 --> 00:40:16.719 the copy of your book or and. 710 00:40:16.719 --> 00:40:25.840 I get it. I don't know. And you said that, yeah, 711 00:40:25.960 --> 00:40:28.559 I'm sorry. I mean I'm in a hotel, I'm in transit, 712 00:40:28.639 --> 00:40:31.039 so the network is really slow. I'm not able to 713 00:40:31.159 --> 00:40:35.119 download the book and share just I'm I'm on YouTube. 714 00:40:35.119 --> 00:40:38.239 It's just struggling. So what we're going to do right, 715 00:40:38.400 --> 00:40:40.280 send me a d M. First of all, the book 716 00:40:40.280 --> 00:40:42.679 can be gotten on Amazon. It used to be at 717 00:40:43.199 --> 00:40:45.360 It used to be the local bookstore in Nigeria. But 718 00:40:45.400 --> 00:40:51.440 we've printed three three editions. It's alsold out. It's sold out, 719 00:40:51.920 --> 00:40:56.960 so it's easier on Amazon because it's just easier on Amazon. 720 00:40:57.000 --> 00:40:59.119 The prices have gone up and all that. So if 721 00:40:59.159 --> 00:41:01.599 you go to Amazon, it's Christmas, people are coming home. 722 00:41:01.840 --> 00:41:04.199 Just don't get it for you. Is the prices aren't 723 00:41:04.280 --> 00:41:06.960 change in dollar terms. It's a good present for you. 724 00:41:07.119 --> 00:41:08.840 They can get it for you and just deliver it 725 00:41:08.880 --> 00:41:12.679 to you on an Amazon For the other screen shot, 726 00:41:13.159 --> 00:41:15.559 I wish you could if you send me a d M. Right, 727 00:41:16.360 --> 00:41:18.320 just send me a DM. I will try to send 728 00:41:18.320 --> 00:41:20.480 you a screenshot of what we're talking about. I do, 729 00:41:20.679 --> 00:41:23.760 I do, I just I want the network kid is 730 00:41:23.840 --> 00:41:29.360 really slows. I'm able to do all that stuff. Yeah, 731 00:41:30.239 --> 00:41:36.119 work for you, Gibril. If you can hear me, do 732 00:41:36.159 --> 00:41:36.519 you hear me? 733 00:41:41.000 --> 00:41:41.039 You? 734 00:41:42.840 --> 00:41:45.079 All right? I will try to once I get to 735 00:41:45.119 --> 00:41:48.440 a place that's got like fantastic internet, I will try 736 00:41:48.480 --> 00:41:50.920 to send you a huge screenshots. But Amazon is also 737 00:41:50.960 --> 00:41:52.719 going to be weareh the best place for you to 738 00:41:52.800 --> 00:41:56.119 get that, right, fantastic. Thanks for hopping and I appreciate 739 00:41:56.119 --> 00:41:59.840 it all right. Yeah, So I was talking around debt 740 00:42:00.079 --> 00:42:02.760 management before we took the call. Debt management. This is 741 00:42:02.800 --> 00:42:04.599 a big, big, big issue. We've done a lot of 742 00:42:04.639 --> 00:42:08.480 space on death management. My book has a chapter specific 743 00:42:08.519 --> 00:42:11.320 on death management. So how do you manage death? And 744 00:42:11.360 --> 00:42:13.280 what is this debt we're talking about? If you go 745 00:42:13.320 --> 00:42:15.920 back to our financial plan, debt is when you have 746 00:42:16.119 --> 00:42:21.599 accumulated interest bearing liabilities and you have no income generating 747 00:42:21.719 --> 00:42:25.079 assets to cover. Remember, debt is not the problem. The 748 00:42:25.199 --> 00:42:29.920 problem is that you have generated that income liability with 749 00:42:30.159 --> 00:42:35.519 no with no interest assets. That's what the problem is. 750 00:42:35.880 --> 00:42:38.480 So let's say you have a debt problem. How do 751 00:42:38.519 --> 00:42:40.679 you get out of it? So Number one, make sure 752 00:42:40.840 --> 00:42:43.760 this down, guys. Number one, you want to list out 753 00:42:44.280 --> 00:42:47.920 every loan that you have, every loan. List just list 754 00:42:48.000 --> 00:42:50.880 everything out. What I mean every loan, I mean every loan. 755 00:42:51.159 --> 00:42:53.760 Your brother gave you money, that's the loan. Write it down. 756 00:42:53.920 --> 00:42:55.760 The bank gave you a credit card, that's the loan. 757 00:42:55.800 --> 00:42:58.679 Write it down. You borrow money from your corporative. List 758 00:42:58.960 --> 00:43:03.000 every single down that you have. That's number one. Number 759 00:43:03.000 --> 00:43:06.760 two you want to then attach a cost to the loan. 760 00:43:07.199 --> 00:43:09.400 So let's go back. Your brother give you money. He's 761 00:43:09.440 --> 00:43:12.280 not charging your interest, so you put zero percent. The 762 00:43:12.320 --> 00:43:14.519 bank gave you a credit card, they are charging you 763 00:43:14.559 --> 00:43:17.519 interest twenty five percent, you put twenty five percent. Your 764 00:43:17.599 --> 00:43:20.199 competitor give you loan, but it's not subsidized with it's 765 00:43:20.199 --> 00:43:22.280 five percent. You put five percent. So now you have 766 00:43:22.360 --> 00:43:26.239 your brother zero percent, you have your bank twenty five percent, 767 00:43:26.360 --> 00:43:29.199 you have your cooperative five percent. So number one, you 768 00:43:29.320 --> 00:43:32.199 listed all your loans down. Number two you attach the 769 00:43:32.320 --> 00:43:35.920 cost to it. Number three you then attach the cost. 770 00:43:36.000 --> 00:43:39.360 I'm after you wrote them number four. There are two 771 00:43:39.360 --> 00:43:41.519 ways to do it. There are two ways to do this. 772 00:43:42.199 --> 00:43:45.559 It's aver called the avalanche. That's aver called the snowball, 773 00:43:46.519 --> 00:43:48.480 and forgive me, I'm not sure which is which. I 774 00:43:48.559 --> 00:43:53.000 missed them up a lot. They're the avalanche method, and 775 00:43:53.039 --> 00:43:57.199 there's a snowball method with the avalanche. And again, forgive me, 776 00:43:57.280 --> 00:43:59.960 I believe, I hope I'm not wrong with the avalanche metal. 777 00:44:00.079 --> 00:44:03.000 What you are trying to do is to pay the 778 00:44:03.199 --> 00:44:07.119 loan with the lowest amount first. It could be the 779 00:44:07.119 --> 00:44:09.239 other way. You can forget me. So let's say you 780 00:44:09.320 --> 00:44:11.840 flisted your loans out. Remember you have your loan from 781 00:44:11.880 --> 00:44:17.280 your brother. Maybe he's charging you zero percent. The loan 782 00:44:17.320 --> 00:44:19.639 from the credit card is charging you twenty five percent, 783 00:44:20.159 --> 00:44:22.360 The loan from your corporative charge in your five percent. 784 00:44:23.079 --> 00:44:26.239 You list the loans out in order of the ape 785 00:44:26.719 --> 00:44:29.960 r i e. The cost of the loan. You pay 786 00:44:30.079 --> 00:44:33.039 the loan the one Metal says, pay the loan off 787 00:44:33.639 --> 00:44:36.920 that has the lowest amount. So let's say your brother 788 00:44:37.000 --> 00:44:39.400 is when you own your brother five thousand, then you 789 00:44:39.440 --> 00:44:42.000 owe the bank ten thousand, Then you owe the corporated 790 00:44:42.039 --> 00:44:44.599 twenty five thousand. It says you pay your brother first 791 00:44:44.800 --> 00:44:47.840 the five thousand. Why you want a quick win. When 792 00:44:47.840 --> 00:44:50.159 you pay your brother five thousand, you take that same 793 00:44:50.159 --> 00:44:51.679 money you used to pay your brother and you can 794 00:44:51.719 --> 00:44:54.239 start to pay the other guy off. You pay the 795 00:44:54.280 --> 00:44:57.280 bank of so you pay the loan the dollar amount 796 00:44:57.320 --> 00:44:59.320 that is lower first, you pay that love. Then you 797 00:44:59.400 --> 00:45:03.000 instantly trying into paying the second loan. Then you then 798 00:45:03.079 --> 00:45:05.199 go find to pay the head loan. So you pay 799 00:45:05.280 --> 00:45:07.800 in terms of the lowest amount first, because you want 800 00:45:07.800 --> 00:45:10.320 to start to get rid of them. Have quick wins, 801 00:45:10.360 --> 00:45:13.199 and you don't stop. When you pay the lower amount 802 00:45:13.280 --> 00:45:15.719 of you simply take the money and you go back 803 00:45:15.760 --> 00:45:17.760 to pay the next one. So you have a plan 804 00:45:17.840 --> 00:45:19.679 to say, I'm going to pay this off, and you 805 00:45:19.760 --> 00:45:22.400 said to move to the second one and mostly retired one. 806 00:45:22.639 --> 00:45:26.599 That's one metal. The other method is you pay the 807 00:45:26.800 --> 00:45:30.840 war loans that have the highest cost of first. So 808 00:45:30.960 --> 00:45:34.119 let's say your credit card you are only fifty dollars, 809 00:45:34.440 --> 00:45:37.840 but you are only your competitive fifty thousand, but your 810 00:45:37.840 --> 00:45:41.559 credit card is charging you twenty five percent. Your corporative 811 00:45:41.639 --> 00:45:45.320 is charging you five percent. This method says you pay 812 00:45:45.360 --> 00:45:48.880 the credit card of first the fifth because it's a 813 00:45:49.039 --> 00:45:53.639 higher ap R, higher interest, it cost you more to 814 00:45:53.719 --> 00:45:56.880 keep that loan open. So you pay that credit card 815 00:45:57.000 --> 00:46:00.199 or first before you go pay the cooperating which is 816 00:46:00.360 --> 00:46:03.039 five percent, before you pay your brother, which is a 817 00:46:03.199 --> 00:46:06.880 zero percent. Why because it costs you more. This is 818 00:46:06.920 --> 00:46:09.920 the preferred mental. Pay the loan that costs you more 819 00:46:10.239 --> 00:46:12.199 than to pay the loan that I have the lower amount. 820 00:46:12.320 --> 00:46:14.559 The problem is that the lower amount gives you a 821 00:46:14.599 --> 00:46:17.400 quick wing, so you can see. Instant gratification is good, 822 00:46:17.400 --> 00:46:19.679 there's nothing wrong with it. But the pay off the 823 00:46:19.719 --> 00:46:22.519 load that has the higher APR is going to give 824 00:46:22.559 --> 00:46:26.000 you your balance sheet a bigger, bigger boost. So number one, 825 00:46:26.159 --> 00:46:29.320 write out the loans. Number two you attach your cost 826 00:46:29.360 --> 00:46:33.320 to loan. Number three you rank them either by amount 827 00:46:33.800 --> 00:46:36.199 or by the cost. Then you just start to pay 828 00:46:36.239 --> 00:46:38.440 them down. You basically just say, I'm going to go 829 00:46:38.480 --> 00:46:41.599 back to my budget. I'll cut out an xpense from 830 00:46:41.599 --> 00:46:44.559 my budget that I don't need. I'll cut out a 831 00:46:44.599 --> 00:46:49.079 non discretionary expense that I don't need, or many discussion 832 00:46:49.239 --> 00:46:52.360 esp maybe i'm buying it, maybe I watch DStv. I'll 833 00:46:52.440 --> 00:46:55.679 cut out d STV. Use that DStv money to pay 834 00:46:55.719 --> 00:46:59.960 the principle. Remember, guys, the trick is to pay the principle. 835 00:47:00.760 --> 00:47:04.079 If you owe credit cards and you simply pay the 836 00:47:04.199 --> 00:47:06.639 minimum on your credit card, you're not gonna get anywhere. 837 00:47:06.880 --> 00:47:09.599 It's gonna cost you years to pay that credit card off. 838 00:47:09.599 --> 00:47:12.679 You've got to pay the principle. If you own a car, 839 00:47:13.800 --> 00:47:15.920 bank will tell you pay us on the fifteen, on 840 00:47:15.960 --> 00:47:19.480 the twenty fifth, and inter the payment. When you make 841 00:47:19.480 --> 00:47:22.199 that payment, the bank will take some money to the 842 00:47:22.239 --> 00:47:27.719 principle and some to the interest. All financial institutions will, 843 00:47:27.800 --> 00:47:31.840 fest of all, take their interest first before they paid 844 00:47:31.880 --> 00:47:34.719 the principle. So that means when you pay a bank, 845 00:47:35.440 --> 00:47:38.719 you are paying more to interest at the early loan 846 00:47:39.159 --> 00:47:41.119 than you are paying to the principle. So how do 847 00:47:41.159 --> 00:47:44.280 you counter this? Pay two times if you pay the 848 00:47:44.320 --> 00:47:46.679 bank their own Go back and say I like to 849 00:47:46.679 --> 00:47:50.239 make a payment. I want to make principle. Only tell 850 00:47:50.239 --> 00:47:54.599 them principle only. That money you're paying goes to the principle. 851 00:47:55.079 --> 00:47:59.320 It doesn't change your monthly payment, but it reduces the 852 00:47:59.400 --> 00:48:02.559 loan ten you know, from say five years to four 853 00:48:02.599 --> 00:48:04.719 point five years. This is all you need, right, you 854 00:48:04.719 --> 00:48:07.119 want to reduce the tenure. So when you have a 855 00:48:07.159 --> 00:48:10.320 fixed loan and you make a principal payment, you are 856 00:48:10.360 --> 00:48:13.199 reducing the term. But on a credit card, when you 857 00:48:13.280 --> 00:48:15.559 make a payment to the principle the credit card, you 858 00:48:15.639 --> 00:48:18.280 are actually cleaning off the loan on that credit card, 859 00:48:18.559 --> 00:48:20.400 because you are cleaning off what the credit card is 860 00:48:20.480 --> 00:48:23.199 charging you. Every month. The credit card looks as what 861 00:48:23.280 --> 00:48:27.719 you owe. It will calculate your your APR once every 862 00:48:27.760 --> 00:48:31.440 month and charge your very expensive rate. So when you 863 00:48:31.440 --> 00:48:33.519 make a credit card payment, try to make it twice. 864 00:48:33.920 --> 00:48:36.039 You pay the bank, then you pay again, and you 865 00:48:36.119 --> 00:48:38.880 tell the bank credit card is automatic. Once you pay, 866 00:48:39.239 --> 00:48:41.920 it goes to principle. But with the other fixed loans, 867 00:48:41.920 --> 00:48:45.679 you've got to tell them principle only. So you go 868 00:48:45.760 --> 00:48:48.199 to the principle and they can't pay up the loan. 869 00:48:48.639 --> 00:48:50.880 That's how you want to do a desk management, right, 870 00:48:50.960 --> 00:48:55.079 You identify and you pay off with a plan and 871 00:48:55.199 --> 00:48:57.440 with a purpose. Don't leave it to chance. Don't say 872 00:48:57.519 --> 00:48:59.800 I'm going to pay this loan when they call. Have that. 873 00:49:00.599 --> 00:49:03.960 It's very simple and need to work for you. Right. 874 00:49:04.280 --> 00:49:07.239 So this we're talking income. Well, so we're talking assets 875 00:49:07.239 --> 00:49:10.079 and liabilities. We're focusing now on the libry stub, which 876 00:49:10.119 --> 00:49:14.039 is your debt, How to pay off that debt, that debt. Yeah, 877 00:49:14.599 --> 00:49:16.760 so now when we want to do as we're going 878 00:49:16.800 --> 00:49:18.760 to have a whole new space because that's a whole 879 00:49:18.840 --> 00:49:21.880 new topic. Are talking about asset allocation. I'm not do 880 00:49:21.960 --> 00:49:24.039 as a location a separate space for you guys, because 881 00:49:24.079 --> 00:49:27.719 that's very, very important. How to invest. So many of 882 00:49:27.800 --> 00:49:34.360 us are investing wrongly. We're investing according to returns, not objectives. 883 00:49:34.440 --> 00:49:38.159 You don't invest because it pays you more. You invest 884 00:49:38.199 --> 00:49:42.880 because your objective is this or debt. For instance, if 885 00:49:42.920 --> 00:49:46.639 your rent is due next year, there are certain investments 886 00:49:46.719 --> 00:49:49.440 you cannot invest in with the excess money you have 887 00:49:49.519 --> 00:49:52.559 for your rent. You can't buy crimptal with your rent money. 888 00:49:52.679 --> 00:49:55.079 You can't buy stock with your rent money. It doesn't 889 00:49:55.079 --> 00:49:59.840 mean crypto and stocks are bad. It simply means that 890 00:50:00.199 --> 00:50:04.480 your duration is too short for you to make any 891 00:50:04.840 --> 00:50:10.719 any any any compounding return with because it's just one year, 892 00:50:11.400 --> 00:50:14.599 and stocks do better over an extended period of time, 893 00:50:14.679 --> 00:50:18.480 not one year. So there is no better investment. Stocks 894 00:50:18.519 --> 00:50:21.559 are not better than fixed income, but those stocks have 895 00:50:21.639 --> 00:50:24.440 going to be attached to your objective. So many times 896 00:50:24.480 --> 00:50:27.599 we'll say there's a federal goverment bond and the feedogment 897 00:50:27.639 --> 00:50:30.480 bond pays lower than infficient will say, oh it's paying 898 00:50:30.480 --> 00:50:32.639 lower than inficition, I'm not gonna buy it. That's not 899 00:50:32.679 --> 00:50:37.079 how you look at it. If you are a retiree, unfortunately, 900 00:50:37.159 --> 00:50:39.960 that's the only thing you can buy. You can buy property, 901 00:50:40.519 --> 00:50:43.360 you can buy fixed income, but you can go buy 902 00:50:43.440 --> 00:50:47.159 crypto as the retiree. Also with stocks, you'll be very 903 00:50:47.199 --> 00:50:50.159 careful we buy stocks as a retiree because you have 904 00:50:50.280 --> 00:50:54.079 no compounding period to recover from should those stocks fall. 905 00:50:54.800 --> 00:50:58.880 Last week the market scrypto has gone from twenty six. 906 00:50:59.400 --> 00:51:01.679 It's not a bad eighty five. Imagine if you bought 907 00:51:01.800 --> 00:51:05.559 crypto in your retirement account, how would you have recovered It. 908 00:51:05.559 --> 00:51:09.159 Doesn't mean crypto is bad, but crypto is for younger 909 00:51:09.199 --> 00:51:13.960 people that can afford to sit on a loss for 910 00:51:14.000 --> 00:51:17.159 a longer period. Because when your crypto goes from one 911 00:51:17.280 --> 00:51:20.559 twenty five to eighty five, the worst thing you can 912 00:51:20.679 --> 00:51:23.360 do is to sell. You don't want to sell. You 913 00:51:23.440 --> 00:51:26.159 want to stay here in the market until they recover it. 914 00:51:26.559 --> 00:51:29.079 But if you are not selling and you are eighty 915 00:51:29.119 --> 00:51:31.360 five years old or seventy five years old, how do 916 00:51:31.400 --> 00:51:33.880 you eat? You have to sell to eat, So you're 917 00:51:33.920 --> 00:51:36.400 going to sell that crypto at a loss. That's the point. 918 00:51:36.920 --> 00:51:42.239 You invest according to your objectives, not the returns that 919 00:51:42.280 --> 00:51:44.320 are being offered. Kid that in mind, guys, don't ever 920 00:51:44.440 --> 00:51:47.599 invest because the returns are high. You want to ask 921 00:51:47.639 --> 00:51:50.039 yourself what type of investment is this. If it's a 922 00:51:50.119 --> 00:51:54.119 longer investment and you have a retirement plan, of course 923 00:51:54.159 --> 00:51:56.519 you invest. But if it's your rents money. You have 924 00:51:56.599 --> 00:51:59.599 rent money today, but it's due next year, you don't 925 00:51:59.760 --> 00:52:02.800 buy crypto with your rent money. You don't buy stock 926 00:52:02.840 --> 00:52:06.000 with your rent money because it's not guaranteed. There is 927 00:52:06.119 --> 00:52:10.119 fixed income, which is guaranteed. There's variable income, which is 928 00:52:10.159 --> 00:52:15.679 not guaranteed. Variable income always has a better return that 929 00:52:15.960 --> 00:52:20.599 fixed income because the risk factor inheriting it. All right, folks, 930 00:52:20.679 --> 00:52:23.960 let me just read a few messages here so I 931 00:52:24.000 --> 00:52:29.880 can just get the party going. Yes, I'm investing in 932 00:52:30.000 --> 00:52:34.320 my four Yes, so that's exactly what I'm saying. You said, 933 00:52:34.360 --> 00:52:37.079 which I should not invest in. I should not buy 934 00:52:37.159 --> 00:52:41.280 investment unless I have a retirement savings account. Please, can 935 00:52:41.360 --> 00:52:46.239 you explain more on this because I'm investing that's my retirement. No, 936 00:52:46.840 --> 00:52:50.360 look at what I'm saying. If you are investing. It's 937 00:52:50.400 --> 00:52:53.320 always a good idea. It's always a good idea to 938 00:52:53.480 --> 00:52:56.679 invest when I s in your honest account or in 939 00:52:56.719 --> 00:53:00.400 an investment fund. But when you put money in a America, 940 00:53:00.480 --> 00:53:04.119 which it's called for one K or the individual retirement 941 00:53:04.199 --> 00:53:06.719 account eirah in Nitia, we call it the retirements in 942 00:53:06.840 --> 00:53:12.239 this account. Those accounts are what we call tax advantaged accounts. 943 00:53:12.639 --> 00:53:15.159 With any funds you put in that account, you don't 944 00:53:15.159 --> 00:53:19.039 pay taxes. Not only do you not pay taxes, those 945 00:53:19.079 --> 00:53:23.360 accounts grow tax deferred. What that means is that when 946 00:53:23.480 --> 00:53:29.079 you put when you put money in that account, it 947 00:53:29.239 --> 00:53:35.760 will compound without putting, without you paying taxes. So you 948 00:53:35.840 --> 00:53:40.239 are able to then grow that portfolio faster than an 949 00:53:40.280 --> 00:53:44.079 account where you're in withholding taxes and the rest. So 950 00:53:44.480 --> 00:53:48.920 long term, long term, having money in the retirement since 951 00:53:48.960 --> 00:53:53.280 account that is tax deferred has a huge advantage because 952 00:53:53.320 --> 00:53:56.559 you're not paying taxes. So the first you want to 953 00:53:56.639 --> 00:54:00.920 invest is not your own personal investment in the retirement 954 00:54:00.960 --> 00:54:05.000 simis account that the company is offering you because it 955 00:54:05.000 --> 00:54:07.760 has a tax advantage. So if you live in America 956 00:54:07.880 --> 00:54:10.639 and the company offers you for one K, they will 957 00:54:10.679 --> 00:54:13.199 tell you if you contribute to one nur will contribute 958 00:54:13.280 --> 00:54:15.440 or if you compute to one dollar, will contribute fifty 959 00:54:15.519 --> 00:54:18.079 cents of ten cents or one ten. You want to 960 00:54:18.119 --> 00:54:21.360 take advantage of that because that's the that's an salary 961 00:54:21.400 --> 00:54:25.320 increase to you seem in Nigeria, if you contribute eight percent, 962 00:54:25.920 --> 00:54:29.400 your company will pay ten percent. Eight percent of your 963 00:54:29.440 --> 00:54:33.400 busy coutunal transport, your company will contribute ten percent. So 964 00:54:33.639 --> 00:54:36.960 why would you not firstiform maclimize your retirement simmeters account 965 00:54:37.119 --> 00:54:40.639 and get the ten percent on your company before opening 966 00:54:40.719 --> 00:54:44.199 up your own. You can open up yours after you 967 00:54:44.280 --> 00:54:49.079 have done the company's retirement accounts. You don't do yours 968 00:54:49.599 --> 00:54:52.280 and not do the company retirement sentens accounts. You have 969 00:54:52.360 --> 00:54:55.199 to do the service account for the company that is 970 00:54:55.239 --> 00:55:00.679 tax deferred first max it out, then you can do yours. 971 00:55:00.840 --> 00:55:04.679 It's very important and if in America, the best investment 972 00:55:04.760 --> 00:55:08.960 you can have, it's called the health savings account. Where 973 00:55:08.960 --> 00:55:12.239 a health savings account, when you put money in, it's 974 00:55:12.440 --> 00:55:17.079 tax tax tax exempt, so you put money in, you 975 00:55:17.159 --> 00:55:19.679 can write what you're put in from your tax from 976 00:55:19.679 --> 00:55:21.960 your income, so it's you take that off your income 977 00:55:22.559 --> 00:55:27.360 when it grows. It is tax free tax free. So 978 00:55:27.639 --> 00:55:30.639 you put money in, you don't pay taxes. The money grows, 979 00:55:31.360 --> 00:55:33.559 you don't pay taxes. When you take the money out, 980 00:55:33.800 --> 00:55:36.960 you also don't pay taxes. So look at it this way. 981 00:55:36.960 --> 00:55:39.480 You are twenty five years old, they are very very healthy. 982 00:55:39.960 --> 00:55:43.159 You open up a retime a health invni's account. Every month, 983 00:55:43.280 --> 00:55:46.159 put twenty five dollars into that Hilton's account every month. 984 00:55:46.639 --> 00:55:50.920 It's going to grow tax free for every year that 985 00:55:50.960 --> 00:55:53.960 you are working. Every year you just put it in. 986 00:55:54.519 --> 00:55:57.280 When you retire, all that money you have built up, 987 00:55:57.440 --> 00:56:02.800 you can withdraw that money for health related expenses tax free. 988 00:56:02.960 --> 00:56:06.119 You can buy shoes, sneakers, you can buy drugs. You 989 00:56:06.159 --> 00:56:09.880 can fly to get a massage on a Greek island, 990 00:56:09.880 --> 00:56:11.679 which is healthy. You can go and get a mud 991 00:56:11.760 --> 00:56:15.519 path in Turkey. Thuse are all health related transactions. You 992 00:56:15.519 --> 00:56:18.960 can buy vitamins and not gay taxes when you take 993 00:56:19.000 --> 00:56:21.679 it out. There's no other investment gives you a three 994 00:56:22.239 --> 00:56:26.159 tax benefit when you put it in GRUS and take 995 00:56:26.199 --> 00:56:28.679 it out is tax differred. So if you're in America 996 00:56:28.719 --> 00:56:30.280 and you're listening, you want to make sure you go 997 00:56:30.360 --> 00:56:34.440 open up a health savings account. Ask your employer most 998 00:56:34.440 --> 00:56:36.159 and plus or offer that to you with a high 999 00:56:36.159 --> 00:56:39.599 deductible plan. Actually, if it's a health serves account, make 1000 00:56:39.599 --> 00:56:42.440 sure it fits your objective and you want to go 1001 00:56:42.519 --> 00:56:47.239 get it. So that's start for for that. Yeah. Yeah, Instagram, 1002 00:56:47.280 --> 00:56:50.199 you have a question, Please go ahead, Integrified, go ahead 1003 00:56:50.199 --> 00:57:00.480 your question. Just go read this. Okay, that's so example, 1004 00:57:00.519 --> 00:57:00.800 you have. 1005 00:57:02.760 --> 00:57:09.119 Magency from, you have your I mean idea, you have 1006 00:57:09.480 --> 00:57:14.679 your emergency from, you have your your more because it's 1007 00:57:14.800 --> 00:57:19.840 your place in harrass your health small that supports. 1008 00:57:19.440 --> 00:57:22.280 You if you want to. I can't resent your money, 1009 00:57:23.039 --> 00:57:27.159 you know, I have a trend walking around is how 1010 00:57:27.159 --> 00:57:28.039 am I going to be? 1011 00:57:28.360 --> 00:57:32.159 How am I going to agree gise my investments? Okay, 1012 00:57:32.800 --> 00:57:39.280 present goes to stock so percient real estates because I'm 1013 00:57:39.599 --> 00:57:45.760 very I have affinity for a reask because of my age. 1014 00:57:47.880 --> 00:57:54.199 Both I took this and its compas as well as okay, 1015 00:57:55.199 --> 00:57:57.559 just throwing money around the little days. 1016 00:57:57.679 --> 00:58:07.079 I how much because none of them I wanted to. 1017 00:58:10.599 --> 00:58:11.159 Understanding. 1018 00:58:15.679 --> 00:58:18.639 I can't agree this and also I don't know who 1019 00:58:18.719 --> 00:58:22.719 is actually to do really to. 1020 00:58:25.760 --> 00:58:28.039 You know have been posted. 1021 00:58:31.480 --> 00:58:33.719 Yeah, so the question you're asking is how to do 1022 00:58:33.800 --> 00:58:36.119 with what we call it as a location. That's what 1023 00:58:36.239 --> 00:58:38.960 we'll do on our next space. Essentially, what you what 1024 00:58:39.119 --> 00:58:41.760 you talk about it as a location, you say, this 1025 00:58:41.960 --> 00:58:44.760 is who I am, and I want to invest money. 1026 00:58:45.519 --> 00:58:48.239 What should I buy? And that's where multiple feel it. 1027 00:58:48.480 --> 00:58:51.679 So when you do your as a location, the way 1028 00:58:51.840 --> 00:58:55.159 you do it is essentially going to be It's about 1029 00:58:55.280 --> 00:58:58.519 ninety five percent of the successful plan comes from your 1030 00:58:58.519 --> 00:59:02.840 as a location. But I try to cent so if 1031 00:59:02.920 --> 00:59:05.440 you get that right, and then is an example, how 1032 00:59:05.559 --> 00:59:09.719 how old are you? How are you like below forty, below, thirty, 1033 00:59:09.800 --> 00:59:16.119 below fifty okay, okay, So if you're take two years 1034 00:59:16.320 --> 00:59:19.159 old right, just on the age of load, that tells 1035 00:59:19.199 --> 00:59:21.800 me you have about let's say you want to retire 1036 00:59:21.880 --> 00:59:25.119 when you're sixty five. That's how many compounding periods you have. 1037 00:59:25.800 --> 00:59:29.480 You have a very long compound that you can afford 1038 00:59:29.519 --> 00:59:32.440 to invest. When do you think if you invest, you 1039 00:59:32.519 --> 00:59:34.239 want to take money out? Where do you think you're 1040 00:59:34.239 --> 00:59:41.480 going to You're going to retire? I want to okay, 1041 00:59:41.960 --> 00:59:47.480 I want to start working for somebody within maybe and 1042 00:59:48.280 --> 00:59:52.280 I want to stop working for money maybe. 1043 00:59:52.599 --> 00:59:53.000 Mom. 1044 00:59:54.599 --> 00:59:57.119 Is okay, So I like that plan. So if you 1045 00:59:57.199 --> 00:59:59.519 have forty five years and you are twenty five years 1046 00:59:59.559 --> 01:00:01.719 to the what you attend me? What I hear you 1047 01:00:01.800 --> 01:00:04.599 saying terms that you want to build up your passive 1048 01:00:04.719 --> 01:00:10.119 income in ten years. That's what I hear you saying. Yes, okay, 1049 01:00:10.280 --> 01:00:12.320 So look at the matt Yere right, if you want 1050 01:00:12.400 --> 01:00:15.239 to get let's see, let's ass your interest rates at 1051 01:00:15.280 --> 01:00:17.239 ten percent. Just to make it easy for us, let's 1052 01:00:17.239 --> 01:00:20.679 as interrate at ten percent. Right, Let's say the answer. 1053 01:00:21.039 --> 01:00:23.199 Let's say, what do you what do you end? Right now? 1054 01:00:23.320 --> 01:00:25.679 Do you end below one million, below two million, below 1055 01:00:25.719 --> 01:00:28.199 twe million, below four million below? What do you end? 1056 01:00:28.239 --> 01:00:30.559 You end? Give me like a range? What do you earn? 1057 01:00:32.480 --> 01:00:36.840 It sounds okay, Let's say you and let's all say 1058 01:00:36.840 --> 01:00:40.000 you end even five, just to make it to match easier. Right, 1059 01:00:40.159 --> 01:00:42.800 So let's say you end five million, right, So what 1060 01:00:42.960 --> 01:00:48.159 you're saying that you want to end, so half of 1061 01:00:48.320 --> 01:00:53.679 five is two point five right, you want to end 1062 01:00:53.760 --> 01:00:57.000 two point five million. Let's assume that's no inflation. You 1063 01:00:57.079 --> 01:00:59.400 want to end two point five million in ten years. 1064 01:01:00.039 --> 01:01:02.840 Let's do the mass, So two point five percent is 1065 01:01:02.920 --> 01:01:06.519 the end FIGO. Let's say return on asset is ten percent? 1066 01:01:07.159 --> 01:01:10.480 What should I put in front of two point five million? 1067 01:01:11.239 --> 01:01:14.119 That if I'm multiplied by ten percent, I'll get two 1068 01:01:14.159 --> 01:01:17.400 point five what's that first figure? It's very it's very easy, mats, 1069 01:01:17.760 --> 01:01:20.480 So what should I put that? If I multiplied by 1070 01:01:20.559 --> 01:01:22.960 ten percent, I'll get to point five percent? What was 1071 01:01:23.039 --> 01:01:24.960 that first field? How much would that be? 1072 01:01:25.440 --> 01:01:25.719 Okay? 1073 01:01:28.280 --> 01:01:36.679 Oh, excellent? Twenty five million? Excellent. So what you are 1074 01:01:36.800 --> 01:01:40.360 saying is that you want to go from three million 1075 01:01:40.559 --> 01:01:46.719 active income to twenty five million in savings. That will 1076 01:01:46.800 --> 01:01:52.679 generate your passive income of two point five million every 1077 01:01:52.840 --> 01:01:55.599 year in ten years. That's what you're saying. You're gonna 1078 01:01:55.639 --> 01:01:59.400 go from your current Your current income today is you're 1079 01:01:59.400 --> 01:02:01.800 saying about three million. I moved it up to five lets, 1080 01:02:01.840 --> 01:02:05.199 So right now you earn income today for you is 1081 01:02:05.360 --> 01:02:09.239 five What your plan is that you want in the 1082 01:02:09.400 --> 01:02:12.039 next ten years? And when we say ten years, what 1083 01:02:12.159 --> 01:02:15.440 take it to two periods? So ten times twelve. You 1084 01:02:15.559 --> 01:02:17.480 are saying you want to have in one hundred and 1085 01:02:17.639 --> 01:02:22.719 twenty compounding periods, you want to make twenty five million. 1086 01:02:23.760 --> 01:02:26.840 That's what you want to have in one hundred and 1087 01:02:27.000 --> 01:02:32.679 twenty compounding periods. At one hundred and twenty compounding periods, 1088 01:02:32.920 --> 01:02:35.920 you want to have twenty five million. That if in 1089 01:02:35.960 --> 01:02:39.440 fished its ten percent, it will direct two point five percent. 1090 01:02:40.159 --> 01:02:42.800 What do you think in Nigeria can give you ten 1091 01:02:42.920 --> 01:02:57.960 percent today? What do you know? Something like. 1092 01:03:02.000 --> 01:03:05.599 Like oh from what that say? 1093 01:03:06.960 --> 01:03:07.320 You did. 1094 01:03:10.400 --> 01:03:10.440 What? 1095 01:03:11.920 --> 01:03:21.280 I Yeah? So it's like okay, so fantastic, I hear. 1096 01:03:21.320 --> 01:03:23.360 I like how you say? So you're business. Now you 1097 01:03:23.400 --> 01:03:25.679 see you're looking for the investment that can give you 1098 01:03:26.920 --> 01:03:28.760 that you want to invest. I will give you into 1099 01:03:28.840 --> 01:03:33.360 five in teny years. That's what you're doing, right, Yeah, 1100 01:03:33.559 --> 01:03:44.599 of course you know it's for example, I need to 1101 01:03:44.760 --> 01:03:56.760 quify very that was that was that was your plan? 1102 01:03:56.840 --> 01:03:58.679 I does I does? I just give you your plan 1103 01:03:58.880 --> 01:04:01.320 out in numbers on now you see? Now you see 1104 01:04:01.320 --> 01:04:03.519 how your plans start to fall apart because you yourself, 1105 01:04:03.880 --> 01:04:05.440 I now agree with that two point five is not 1106 01:04:05.519 --> 01:04:07.280 going to be a lot. You see the point when 1107 01:04:07.320 --> 01:04:09.880 you put it on paper, when you do you want 1108 01:04:09.920 --> 01:04:12.000 to say you want to stop working for someone in 1109 01:04:12.159 --> 01:04:14.320 ten years, that's what you said. So if we wear 1110 01:04:14.360 --> 01:04:16.199 the black and we put those numbers and figures for 1111 01:04:16.280 --> 01:04:18.519 you can see now see what are your plan is? 1112 01:04:18.599 --> 01:04:20.840 That means you didn't want to in five million? If 1113 01:04:20.920 --> 01:04:23.559 you want to have passive income or if you want 1114 01:04:23.599 --> 01:04:27.320 to retire, you want to have passive income that can 1115 01:04:27.440 --> 01:04:31.119 cover your expenses. So what you want to do today 1116 01:04:31.199 --> 01:04:34.480 to say what are those expenses that I have? Then 1117 01:04:34.639 --> 01:04:37.800 number two, what is my passive income today? Your passive 1118 01:04:37.880 --> 01:04:41.679 income cannot cover your expenses, your active income can. So 1119 01:04:41.840 --> 01:04:43.840 you have you said in ten years you have one 1120 01:04:43.920 --> 01:04:48.079 hundred and twenty compounding periods to start to convert huge 1121 01:04:48.119 --> 01:04:52.239 amount of your active income to passive income. That in 1122 01:04:52.360 --> 01:04:55.559 ten years you want to pay at least x amount 1123 01:04:55.719 --> 01:05:00.199 of your income from passive income. It is possible. It's 1124 01:05:00.239 --> 01:05:02.880 not about the fastest way to get to that number, sir. 1125 01:05:03.519 --> 01:05:07.079 It's a start business, not to invest. If you start 1126 01:05:07.159 --> 01:05:11.280 a business today, then that becomes active income, but it 1127 01:05:11.400 --> 01:05:17.840 generates you more income to invest in passive assets. You 1128 01:05:18.360 --> 01:05:21.519 hell what I'm saying. If you work for this, If 1129 01:05:21.559 --> 01:05:25.719 you start a business, you generate more active income. That 1130 01:05:26.039 --> 01:05:29.320 active income allows you to them by the passive assets 1131 01:05:29.679 --> 01:05:34.280 that cantribute you fifty percent of your expenses. Number that 1132 01:05:34.360 --> 01:05:37.679 as you get older, you're expense is going to go up. 1133 01:05:38.159 --> 01:05:41.280 Maybe today you go to holiday in Ghana. In ten 1134 01:05:41.360 --> 01:05:43.760 years time, I own to go about in Greece, So 1135 01:05:43.840 --> 01:05:46.559 your expers are going to go up, so it's a 1136 01:05:46.679 --> 01:05:48.880 toll order for you. That why financial planning is a 1137 01:05:48.960 --> 01:05:51.199 very very delicate topic. You've got to have your plan 1138 01:05:51.320 --> 01:05:54.480 on paper. When you put numbers and then see it 1139 01:05:54.480 --> 01:05:57.000 doesn't make any sense either I'm in the wrong job, 1140 01:05:57.559 --> 01:06:00.800 or I need to change my country or change mind, 1141 01:06:01.719 --> 01:06:04.679 change mind what to call my assets so or change 1142 01:06:04.719 --> 01:06:07.599 my decor anything. Because if you do it that way, 1143 01:06:07.639 --> 01:06:10.559 then it makes sense. If this if you were if 1144 01:06:10.639 --> 01:06:15.119 you are in America and you want to retire in Nigeria, 1145 01:06:15.760 --> 01:06:21.599 your whole cognition changes because now you're bringing dollars back 1146 01:06:21.679 --> 01:06:26.239 to Nigeria that if you convert, can give you sufficient 1147 01:06:26.559 --> 01:06:30.440 income to live out your passive income. Like do you 1148 01:06:30.519 --> 01:06:35.519 see what I'm saying? So investing is about looking at 1149 01:06:35.719 --> 01:06:41.880 all those all those and what we say options and 1150 01:06:41.960 --> 01:06:44.239 then basically saying this is what I would like to do, 1151 01:06:44.760 --> 01:06:47.920 and using those options to then do your financial plan. 1152 01:06:49.440 --> 01:06:51.840 Because it's it's not like you said, it's easy to 1153 01:06:51.880 --> 01:06:55.400 say I like to retire in twenty four in ten 1154 01:06:55.480 --> 01:06:58.679 years when you look at the figures, it's very very daunting. 1155 01:06:59.360 --> 01:07:02.679 But the suppose don't change is how you want to 1156 01:07:02.840 --> 01:07:06.800 achieve those principles that change. Yeah, alright, thanks again. I 1157 01:07:06.880 --> 01:07:11.320 really enjoyed using your example, really really do. Yeah, should 1158 01:07:11.320 --> 01:07:13.840 regard me to me honestly, honestly, sir, it's best to 1159 01:07:13.920 --> 01:07:15.880 just send me just also ask me a question of 1160 01:07:15.920 --> 01:07:19.719 the timeline and respond yeah. I get a love requests 1161 01:07:19.760 --> 01:07:21.679 sometimes things I don't go there. Just ask it because 1162 01:07:21.719 --> 01:07:24.559 of the time and I respond yeah, tag me ask 1163 01:07:24.599 --> 01:07:28.360 me a question of response. So question from YouTube how 1164 01:07:28.599 --> 01:07:30.840 easy is it to get the money from the ARRESSA 1165 01:07:31.000 --> 01:07:34.639 want retirement? Which is the ARSS bands to be trust 1166 01:07:34.920 --> 01:07:38.079 ANSWERD Yes, it's rather easy to get your money from 1167 01:07:38.119 --> 01:07:41.679 your retirements in miss account. They give you watching to 1168 01:07:41.760 --> 01:07:45.679 bring in documents, documents into bringing once you're about to retire, 1169 01:07:45.719 --> 01:07:47.800 I tell them to tell you what to bring in. 1170 01:07:48.280 --> 01:07:51.000 You bring it into, the company will pay you. I 1171 01:07:51.119 --> 01:07:53.280 build the pay half of your money as boxed, some 1172 01:07:53.400 --> 01:07:55.679 in cash and they pay the rest as an annuity 1173 01:07:55.800 --> 01:07:59.599 to you. Yes, you can put any trustee as your beneficiary. 1174 01:08:00.000 --> 01:08:02.360 So that's what they can receive those pension assets. That's 1175 01:08:02.519 --> 01:08:04.159 I see what you're going with that. Yes, you can 1176 01:08:04.280 --> 01:08:07.360 do that. Most people don't are not using the arresses 1177 01:08:07.400 --> 01:08:11.360 the right way. Right, you have a guaranteed stream of 1178 01:08:11.639 --> 01:08:14.719 income that's going to come to you when you retire, 1179 01:08:15.159 --> 01:08:17.399 when you have your financial plan, do you take that 1180 01:08:17.479 --> 01:08:20.600 into consideration when you want to go buy that mortgage. 1181 01:08:20.880 --> 01:08:22.880 You want to tell the mortgage company, I have this 1182 01:08:23.039 --> 01:08:25.680 guarantee stream of income coming to me in the next 1183 01:08:25.960 --> 01:08:28.720 twenty five years. Can you give me a ALP today 1184 01:08:28.840 --> 01:08:30.680 and I will look for a way. I'm not going 1185 01:08:30.760 --> 01:08:32.640 to tell you what to do to attach that stream 1186 01:08:32.720 --> 01:08:37.319 of income to paid on that mortgage. Your retirement series accounts, 1187 01:08:37.439 --> 01:08:41.119 your long term savings. It's going to guarantee you a 1188 01:08:41.239 --> 01:08:44.840 stream of income guarantee. But the felleral government not taxable. 1189 01:08:45.119 --> 01:08:47.880 It can be Stolen's in your biometric name. It's in 1190 01:08:48.079 --> 01:08:51.119 your name. Not know the company, it's in your name. 1191 01:08:51.399 --> 01:08:54.119 That's a huge asset that you want to take advantage of. 1192 01:08:54.399 --> 01:08:57.359 Very few leisuras are in that scheme. Less than ten 1193 01:08:57.439 --> 01:09:01.199 percent of national workers on nagial level forces in that scheme. 1194 01:09:01.560 --> 01:09:03.520 So they have the bit of wall of about ten 1195 01:09:03.600 --> 01:09:06.840 to fifteen million raised ninety Nians. But they have the 1196 01:09:07.039 --> 01:09:10.680 non informal sector. That's where you have to go after. 1197 01:09:10.920 --> 01:09:14.279 Many informal folks not in a salary and do not save, 1198 01:09:14.800 --> 01:09:18.239 so you have to make sure that you are saving 1199 01:09:18.399 --> 01:09:20.920 in retirement this account. You don't have to go to 1200 01:09:21.000 --> 01:09:24.560 a PF. They have micro PF now that can enroll 1201 01:09:24.680 --> 01:09:27.439 you as a small business and you can enroll in 1202 01:09:27.560 --> 01:09:30.800 those corporations. Start to say, because it's a compounded return, 1203 01:09:31.439 --> 01:09:34.199 you get professional management into those accounts, and it might 1204 01:09:34.239 --> 01:09:36.520 be the only things that are available for you that 1205 01:09:36.680 --> 01:09:39.760 is separate from your business. Your business cannot be your 1206 01:09:39.880 --> 01:09:44.720 retirement scheme. Your business cannot be your retirement scheme. That's 1207 01:09:44.880 --> 01:09:48.560 just your business. You've got to separate your business from 1208 01:09:48.680 --> 01:09:53.600 your income. Your business pays you an income, Your business 1209 01:09:53.680 --> 01:09:57.800 not your income separated. So if you own a business, 1210 01:09:58.079 --> 01:10:00.560 the income should come to you. So that way you 1211 01:10:00.640 --> 01:10:03.760 can transit the business of somebody else and still get 1212 01:10:03.800 --> 01:10:08.399 the income shares. When you incorporate equity, you hold equity. 1213 01:10:08.920 --> 01:10:13.079 The business. Equity is owned by yourself, and the business 1214 01:10:13.159 --> 01:10:15.800 then pays diffidence to the equity, which you then own. 1215 01:10:16.159 --> 01:10:19.680 You don't have to work twenty four seven because you 1216 01:10:19.800 --> 01:10:22.840 own a business. You can own the business, get the 1217 01:10:22.960 --> 01:10:25.520 income and not walk to the four seven. That's why 1218 01:10:26.119 --> 01:10:31.359 passive income is the bull, not active income. Passive income 1219 01:10:32.319 --> 01:10:35.840 all right, I had this gentleman here amid hi, do 1220 01:10:38.159 --> 01:10:52.039 amid high. I'll be go ahead, I can hear you. 1221 01:10:52.560 --> 01:10:55.520 Let me go back to to to DM. Yes, so yes, 1222 01:10:57.439 --> 01:10:59.840 the most of the questions that get repetitive, but yes, 1223 01:11:00.039 --> 01:11:02.000 we're stressing. How many do you just put me? When 1224 01:11:02.039 --> 01:11:04.760 you speak? I'm going to mute you when was ham 1225 01:11:04.960 --> 01:11:11.279 just some mutay and then we can speak Oh jeez, yeah, okay, yes, well, 1226 01:11:11.680 --> 01:11:15.079 well we're really focusing on the topic of Pacific. You've 1227 01:11:15.079 --> 01:11:18.760 got to understand that that's the whole goal. If you 1228 01:11:18.840 --> 01:11:22.039 are rich, that's because of pasidic. We're not telling you here, 1229 01:11:22.119 --> 01:11:25.399 go and buy X or Y. This is the structure 1230 01:11:25.600 --> 01:11:28.119 that you want to follow. You know, you can't say 1231 01:11:28.239 --> 01:11:31.119 you want to retire. We just had a conversation with Instagram, 1232 01:11:31.159 --> 01:11:33.359 and I just walk you through how this is done 1233 01:11:33.359 --> 01:11:35.359 in real life. If you go to a fuanship and 1234 01:11:35.560 --> 01:11:37.800 you say I like to retire, I'm going to ask 1235 01:11:37.880 --> 01:11:40.359 you when do you want to retire? What they want 1236 01:11:40.439 --> 01:11:43.039 to get from you is your compounding period, and ask, okay, 1237 01:11:43.079 --> 01:11:45.720 what is your goal when you retire? I just want 1238 01:11:45.720 --> 01:11:47.640 to go to an island and live on that island. 1239 01:11:47.720 --> 01:11:49.920 What want to get from you is also your expenses 1240 01:11:50.479 --> 01:11:52.920 when you retire, but where are you going to retire? 1241 01:11:53.039 --> 01:11:55.800 You know retire United States, are going to retire in Nigia. 1242 01:11:55.920 --> 01:11:59.199 Why is that questioning important? Inflation? If you retire in 1243 01:11:59.199 --> 01:12:02.680 the United States is easier to plan because inflation there 1244 01:12:02.840 --> 01:12:06.479 is really easy to plan an organized around. In Nigeria, 1245 01:12:06.560 --> 01:12:10.720 we've gone from forty percent inflation two years ago or a. 1246 01:12:10.760 --> 01:12:14.720 But if you say effected about ten percent inflation to now, 1247 01:12:14.840 --> 01:12:17.520 where've been told the invasion is sixteen percent in less 1248 01:12:17.560 --> 01:12:20.359 than a year. So would you believe you if you 1249 01:12:20.479 --> 01:12:24.119 go from ten percent to sixteen percent in less than 1250 01:12:24.199 --> 01:12:27.399 two years, it's simply tell it can go back right up. 1251 01:12:28.199 --> 01:12:30.920 And again, why is the interest rate still high if 1252 01:12:31.000 --> 01:12:33.279 the inflation rate has come low? But if you are 1253 01:12:33.319 --> 01:12:36.560 in Nigeria, the plan is a bit more difficult because 1254 01:12:36.600 --> 01:12:38.560 we can't we can't know, we don't know where in 1255 01:12:38.600 --> 01:12:40.760 future is going to be in the next year. So 1256 01:12:40.840 --> 01:12:43.760 you've got to save more if you're in Nigeria. But 1257 01:12:43.960 --> 01:12:47.279 save what you can't save in naira because naira is 1258 01:12:47.520 --> 01:12:51.720 very very unstable store of revenue or sort of ink 1259 01:12:51.840 --> 01:12:54.600 of asset. If you hold a narra today, you are 1260 01:12:54.720 --> 01:12:58.640 losing officially sixteen percent. Just holding ir in your hand, 1261 01:12:59.079 --> 01:13:01.880 you've lost sixteen percent, which is infliction rate. If you 1262 01:13:01.960 --> 01:13:04.000 hold a dollar in your hand, you've lost two to 1263 01:13:04.079 --> 01:13:06.399 three percent, which is inflation rate. To which one do 1264 01:13:06.439 --> 01:13:08.920 you want to basically hold It depends on where you 1265 01:13:09.039 --> 01:13:11.520 want to retire and where your expenses are meant to 1266 01:13:11.560 --> 01:13:15.960 be the best investment scheme or retirement scheme I have seen. 1267 01:13:16.680 --> 01:13:19.479 It's a guy that walks or ends in dollars that 1268 01:13:19.640 --> 01:13:22.920 want to retire in Nigeria. That's perfect because you're getting 1269 01:13:23.000 --> 01:13:26.800 a dollar, you're bringing it to Nigeria to spend. The 1270 01:13:26.920 --> 01:13:29.479 dollar is stable, Nara is on the stable. You can 1271 01:13:29.600 --> 01:13:32.039 afford all your expenses in Nigeria. But not everyone's in 1272 01:13:32.079 --> 01:13:36.039 that class. But then again, if that's where you are today, 1273 01:13:36.479 --> 01:13:39.119 you want to start to them broaden your investment horizon 1274 01:13:39.119 --> 01:13:41.720 and seen I want to buy more dollar investment not 1275 01:13:41.880 --> 01:13:44.800 because Nayra is bad, but because you want to get 1276 01:13:45.000 --> 01:13:49.880 access to a currency that is more stable. Inflation is 1277 01:13:49.960 --> 01:13:52.520 the problem if there was no inflation or women having 1278 01:13:52.600 --> 01:13:55.600 this zoom class, because all we do is when we 1279 01:13:55.800 --> 01:13:59.039 end money, we take tempts on that money, dig the ground, 1280 01:13:59.439 --> 01:14:02.239 putting the grid cover it and then we're good. It's 1281 01:14:02.279 --> 01:14:05.680 because of inflation that we're worried about talking because if 1282 01:14:05.680 --> 01:14:10.000 you save today and it doesn't beat inflation, you're wasting 1283 01:14:10.039 --> 01:14:13.479 your time. Right, But we have still safe, right, we 1284 01:14:13.600 --> 01:14:16.239 still have to say fantastic. Guess let me go back 1285 01:14:16.239 --> 01:14:21.239 to DMS. Yes, we've spoken about inflation. Were passing income? 1286 01:14:21.319 --> 01:14:23.399 YEA mean who talked a lot about that. If you 1287 01:14:23.520 --> 01:14:26.239 just go back, it's it's going to be recorded. It's 1288 01:14:26.319 --> 01:14:29.520 on YouTube. It's also on the podcast. If my podcast 1289 01:14:29.640 --> 01:14:31.439 is the way I see it, it's also on the 1290 01:14:32.439 --> 01:14:34.880 on my DM. There you can get the podcast to 1291 01:14:35.039 --> 01:14:37.800 record it and to be released. We have talked about 1292 01:14:38.000 --> 01:14:40.760 fifty more minutes and we're gonna call it off because 1293 01:14:40.840 --> 01:14:44.159 just because I'm in transit so I'm really getting good 1294 01:14:45.960 --> 01:14:48.359 put download speeds. I want to share a lot of stuff, 1295 01:14:48.479 --> 01:14:51.000 I cannot do it. So we have to call this 1296 01:14:51.439 --> 01:14:54.600 early and then we'll call the day and then next 1297 01:14:54.720 --> 01:14:57.119 week we should have to then do more of the investments. 1298 01:14:57.159 --> 01:15:00.359 We'll start it off from income and expenses that will 1299 01:15:00.479 --> 01:15:03.600 not move to as the liabilities. We've taught us spend 1300 01:15:03.600 --> 01:15:06.800 a little bit today about debts. I said that that 1301 01:15:06.960 --> 01:15:10.319 with this, you want to do your categorization and pure 1302 01:15:10.319 --> 01:15:13.119 of you that cut into your to the highest debt 1303 01:15:13.880 --> 01:15:17.439 amount or the highest debt percentage. I prefer you pay 1304 01:15:17.479 --> 01:15:20.119 the higher e p R. Because I will take off 1305 01:15:20.279 --> 01:15:23.000 your what's it called. It will make it easier for 1306 01:15:23.119 --> 01:15:25.920 you to pay pay to the principal principle only it 1307 01:15:26.079 --> 01:15:28.800 works in your in your in your favor right. And 1308 01:15:28.840 --> 01:15:31.359 then next week we're going to do more of as 1309 01:15:31.439 --> 01:15:33.840 the location with a lot of visuals for that, and 1310 01:15:33.920 --> 01:15:36.560 we'll make sure I have my visuals up and then 1311 01:15:36.640 --> 01:15:39.840 we can share that together because that would show you, guys, 1312 01:15:40.079 --> 01:15:43.039 essentially how to invest me because I invested for returns 1313 01:15:43.680 --> 01:15:45.720 as it's not the way you do it. You won't 1314 01:15:45.840 --> 01:15:48.840 invest for your objectives. And if you're younger, you have 1315 01:15:49.079 --> 01:15:52.840 you that's different Fermi. If you are older, right and 1316 01:15:53.159 --> 01:15:56.680 waiting for em Lots of guys want to speak, but 1317 01:15:56.960 --> 01:16:00.479 I cannot add them. Emrys to floating America. Can you 1318 01:16:00.520 --> 01:16:03.399 hear me? I can see you struggling to look in there. Yeah, 1319 01:16:03.680 --> 01:16:06.840 I heard you, guys, but it's not it's not going 1320 01:16:06.880 --> 01:16:08.840 I think it just in network. Let me get all 1321 01:16:11.079 --> 01:16:14.960 we'll add all that. And I also sent you that request. 1322 01:16:15.119 --> 01:16:18.239 I think it was a network. Let's see what happens. Yeah, oh, 1323 01:16:18.239 --> 01:16:23.680 I hire you all bottom okay, both, I'm doing very well. 1324 01:16:24.760 --> 01:16:31.640 I already got your book. I'm lazy your book. Okay, 1325 01:16:31.880 --> 01:16:34.520 I'm doing an audio version very soon for the day, 1326 01:16:34.640 --> 01:16:40.600 like I am listening to already those two audio books. Books. 1327 01:16:41.279 --> 01:16:43.680 You have been You have been a leader. God bless you, 1328 01:16:43.880 --> 01:16:50.199 and I appreciate that I'm missed. 1329 01:16:50.319 --> 01:16:55.359 So I'm actually living a miss last Sunday about Sundays, 1330 01:16:55.880 --> 01:16:58.119 I don't know if there's any way you do so 1331 01:16:58.359 --> 01:17:03.319 for me, I'll listen and reading. H So you're saiding 1332 01:17:03.319 --> 01:17:06.159 a lot of things, and honestly, I wish there's a 1333 01:17:06.239 --> 01:17:09.760 way you can do, like in transcripts before something that's 1334 01:17:09.960 --> 01:17:13.039 on you that you can even sell long you can 1335 01:17:13.159 --> 01:17:15.199 make money, so you can really make a lot of money. 1336 01:17:15.640 --> 01:17:18.039 I know I live in Nigeria, so I am a 1337 01:17:18.960 --> 01:17:22.880 Nigeria pasting, but my family they live in America. 1338 01:17:23.800 --> 01:17:26.439 So if you can airport if for me, I want 1339 01:17:26.520 --> 01:17:26.720 to do. 1340 01:17:28.800 --> 01:17:32.119 Investments in Nigeria in terms of love, insurance and all 1341 01:17:32.159 --> 01:17:36.399 of those things. If you can set up things that 1342 01:17:36.560 --> 01:17:40.159 would you so, because I see that walk around if 1343 01:17:40.199 --> 01:17:44.960 you are and America, finish your systember Nageria, you know, 1344 01:17:45.800 --> 01:17:49.279 coming up with this our law that's taking up in January, 1345 01:17:50.000 --> 01:17:54.920 I think we'll begin to transit to global space. But 1346 01:17:55.239 --> 01:17:58.840 my point is to say that your book you said, 1347 01:17:58.880 --> 01:18:00.439 oh someone sho you go and read it page and 1348 01:18:00.960 --> 01:18:03.640 when I was jumping between my room, monk okay. 1349 01:18:03.880 --> 01:18:06.479 So if you can do something that will help us 1350 01:18:06.680 --> 01:18:06.920 in the. 1351 01:18:08.520 --> 01:18:13.680 Now, begin to do now that we're class sitting into 1352 01:18:13.760 --> 01:18:17.439 a more like UK that system, things that can help 1353 01:18:17.560 --> 01:18:22.960 us and decomplaints. But please do not advertise. And I 1354 01:18:23.039 --> 01:18:24.039 appreciate it, Thank. 1355 01:18:23.880 --> 01:18:24.199 You, sir. 1356 01:18:24.359 --> 01:18:26.640 Yeah, we've done a lot, so you said a lot. 1357 01:18:26.760 --> 01:18:31.319 So the last space is recorded, so if you go 1358 01:18:31.560 --> 01:18:34.279 to the I think that we do on we do 1359 01:18:34.399 --> 01:18:37.159 a podcast recording and I made sure I did the 1360 01:18:37.319 --> 01:18:40.239 YouTube recording as well, just to have the visual things. 1361 01:18:40.279 --> 01:18:42.279 So both are recorded. I think I have a channel 1362 01:18:42.399 --> 01:18:45.479 on YouTube trying to find me. Also on the podcast 1363 01:18:45.560 --> 01:18:48.840 handle you can still recording there. Make sure I post 1364 01:18:48.880 --> 01:18:52.159 everything up so you can see there. It's very I'm 1365 01:18:52.239 --> 01:18:55.000 trying to bring the language very very you know, Suppo 1366 01:18:55.079 --> 01:18:57.319 can follow. But like you said, it was a page 1367 01:18:57.359 --> 01:19:01.319 I put up last week and it was it's summarized 1368 01:19:01.319 --> 01:19:05.239 everything this is also been recorded as well as regards 1369 01:19:05.319 --> 01:19:07.000 to the book by book. I wrote the book with 1370 01:19:07.039 --> 01:19:10.720 the Nigerian language and Nigerian palance. I tried to use 1371 01:19:10.840 --> 01:19:14.439 as many niger examples. The investments ARECA. I talk about 1372 01:19:14.479 --> 01:19:18.359 their ass talk Nigerian stock market investment funds. There's a 1373 01:19:18.399 --> 01:19:22.119 whole page in Niger on my book around ponds where 1374 01:19:22.159 --> 01:19:24.199 I picked a particular phone and I'll say this is 1375 01:19:24.239 --> 01:19:26.000 the font for this. I say, if you want to 1376 01:19:26.319 --> 01:19:29.119 get long term investing, use this font. If you want 1377 01:19:29.119 --> 01:19:31.520 to buid inflation, use this font. If you want to 1378 01:19:31.600 --> 01:19:34.600 do good, use this fon Nigerian phones, not US phones. 1379 01:19:35.000 --> 01:19:38.159 So even when we do the budget we talk about generator. 1380 01:19:38.399 --> 01:19:40.960 There's no drinks in America. There's no generator to express 1381 01:19:40.960 --> 01:19:43.760 in America. That's why I always talk around the book. 1382 01:19:44.600 --> 01:19:49.560 It's all my experience Nigeria the US managing money for 1383 01:19:49.760 --> 01:19:52.720 rich people, for pensroon phones, for trust. I knew that 1384 01:19:52.800 --> 01:19:55.359 an Islamic fond at the time in my life. All 1385 01:19:55.479 --> 01:19:57.000 that I wrote in the book and I put it 1386 01:19:57.079 --> 01:20:00.199 there very very rich. So it's in all the get 1387 01:20:00.199 --> 01:20:02.479 the book and keep it right, and there's gonna be 1388 01:20:02.520 --> 01:20:05.039 an audiobook coming very soon, so you can listen to 1389 01:20:05.039 --> 01:20:07.560 people like, oh I just listen. You're driving home, just 1390 01:20:07.680 --> 01:20:11.399 listen to it. It's very very rich. All that you 1391 01:20:11.439 --> 01:20:16.760 can go ahead, all that amazing. You're taking a lot 1392 01:20:16.800 --> 01:20:17.159 of people. 1393 01:20:18.079 --> 01:20:21.880 How people, so people who have resources, and then you 1394 01:20:22.000 --> 01:20:22.960 know how to turn it around. 1395 01:20:23.000 --> 01:20:26.920 God bless you, and I just wish you keep open us. 1396 01:20:27.399 --> 01:20:30.920 God bless yourself. Thank you. I'm trying. So the one 1397 01:20:30.960 --> 01:20:32.840 thing that I see nice and I'm not coming the 1398 01:20:32.920 --> 01:20:36.479 one out. If you make something free, people don't really 1399 01:20:36.680 --> 01:20:42.800 value it. So I always tell people, like my day 1400 01:20:42.920 --> 01:20:44.800 job is what I did my day job. People come 1401 01:20:44.840 --> 01:20:47.399 to me and say I want to do this, and 1402 01:20:47.479 --> 01:20:49.920 I tell them this is how you do it, and 1403 01:20:50.079 --> 01:20:52.720 then they pay me or they paid the company that 1404 01:20:52.760 --> 01:20:57.159 I work with. All that so this this is, this 1405 01:20:57.359 --> 01:21:02.159 is this is my probomum, especially to Nagerians. So if 1406 01:21:02.199 --> 01:21:06.000 you notice that page, I talk a lot of Nigerians 1407 01:21:06.199 --> 01:21:08.640 and I try if it's possible not to charge you, 1408 01:21:08.800 --> 01:21:11.319 like to do a master class. If I did a 1409 01:21:11.439 --> 01:21:15.039 master class on this exact same space, I would have 1410 01:21:15.279 --> 01:21:17.520 double number of people on the space and they will 1411 01:21:17.520 --> 01:21:21.720 all be paying. So I'm not saying people just have 1412 01:21:21.800 --> 01:21:24.159 to understand that the money thing is not like if 1413 01:21:24.239 --> 01:21:26.199 you have a dent if you have a opinion your too, 1414 01:21:26.279 --> 01:21:28.880 they're gonna pay a dentisty to get out. If your 1415 01:21:28.960 --> 01:21:30.920 car is bad, they're gonna call them I can take 1416 01:21:30.960 --> 01:21:33.520 it out. But people with money, that's a saying that 1417 01:21:33.680 --> 01:21:36.079 it's my money and I can manage it. That's that's 1418 01:21:36.239 --> 01:21:39.239 kind of wrong. Money has a certain way it has 1419 01:21:39.279 --> 01:21:42.399 to be managed. They are certain principles you've got to follow. 1420 01:21:42.920 --> 01:21:46.600 If you get it's wrong, it's very very it's costly. 1421 01:21:46.920 --> 01:21:49.079 If you lose money, you have to make more money 1422 01:21:49.119 --> 01:21:51.479 to just recompense it for the inflation and for the 1423 01:21:51.560 --> 01:21:54.760 time a lot. I'm not telling you to go buy 1424 01:21:55.039 --> 01:21:57.680 the stock on that stock. I'm giving you how you 1425 01:21:57.800 --> 01:22:06.159 want to arrange your finance, life right plan, insurance, retirement 1426 01:22:07.079 --> 01:22:09.800 before you invest. If you don't do this stuff this way, 1427 01:22:09.920 --> 01:22:11.880 it's going to cause you problem with that line. So 1428 01:22:11.960 --> 01:22:14.319 this is the point I'm making universal principles. It's not 1429 01:22:14.319 --> 01:22:18.159 a Nigerian principle, the investal principle. If you do your 1430 01:22:18.239 --> 01:22:20.560 financial help check, like I said, this is a new 1431 01:22:20.640 --> 01:22:24.640 year coming wherever new year are coming, you track your expenses, 1432 01:22:25.079 --> 01:22:28.760 you track your income. You categorize both of them. You 1433 01:22:28.960 --> 01:22:31.960 know what is passive, you know what is active, you 1434 01:22:32.119 --> 01:22:34.880 know what is non discussionary expenses, you know what the 1435 01:22:35.039 --> 01:22:38.319 discussion of expenses. Then you don't ask yourself this year. 1436 01:22:38.920 --> 01:22:43.399 This year, I mean twen twenty five, how much of 1437 01:22:43.600 --> 01:22:48.760 my passive income can pay my expenses? The answer might 1438 01:22:48.800 --> 01:22:51.520 be one percent. Maybe you have the expenses of a 1439 01:22:51.680 --> 01:22:55.159 million ira and you only have passive income of ten 1440 01:22:55.279 --> 01:22:59.479 thousand ira. So today your passive income can pay one 1441 01:22:59.560 --> 01:23:03.359 percent of your total expenses. Okay, what will your goal 1442 01:23:03.920 --> 01:23:06.880 in twenty six? Can I move that one percent to 1443 01:23:07.119 --> 01:23:11.159 five percent? You see how simple this is. Simply move 1444 01:23:11.279 --> 01:23:14.640 that one percent to five percent. I say in twenty 1445 01:23:14.720 --> 01:23:18.920 twenty six, by December twenty six, I would like five 1446 01:23:19.000 --> 01:23:23.800 percent of my passive income to pay for my expenses. 1447 01:23:24.239 --> 01:23:27.479 That's the great goal for you. That means that means 1448 01:23:27.479 --> 01:23:29.840 you're going to have to go back in and number one, 1449 01:23:30.000 --> 01:23:33.520 increase your investments and number to reduce your expenses. That's 1450 01:23:33.560 --> 01:23:37.079 a goal that everyone can agree with. Then twenty twenty seven, 1451 01:23:37.399 --> 01:23:39.880 can you make it six percent? If you keep on 1452 01:23:40.039 --> 01:23:43.159 doing this way in twenty years, you find out by 1453 01:23:43.199 --> 01:23:46.920 in twenty years time, twenty five percent, twenty percent of 1454 01:23:47.039 --> 01:23:49.439 your passing income is able to pay for your expense. 1455 01:23:49.479 --> 01:23:52.920 And that's the entire goal of retirement. You can't say 1456 01:23:52.960 --> 01:23:57.039 you want to retire retirement. It's when your passive income 1457 01:23:58.119 --> 01:24:00.960 can you pay your expenses. That point where your passive 1458 01:24:01.039 --> 01:24:05.520 income grap with that can pay you're expensively, just like 1459 01:24:05.600 --> 01:24:10.479 a straight line goes like that. That's when you carry tire. Guys. 1460 01:24:10.720 --> 01:24:13.840 So I appreciate you guys hopping in here. Like I said, 1461 01:24:14.119 --> 01:24:17.079 the network really is not allowing me to share. Really 1462 01:24:17.159 --> 01:24:19.399 a lot of stuff I like to share. So we're 1463 01:24:19.439 --> 01:24:22.840 gonna end a bit earlier than we would have normally ended. 1464 01:24:23.359 --> 01:24:26.560 Normally we're here for three hours. Let's see how long 1465 01:24:27.239 --> 01:24:30.279 we can. Just next time we do meet, I ssure 1466 01:24:30.279 --> 01:24:32.720 you to have all these visuals and will show it 1467 01:24:32.760 --> 01:24:35.439 together across to you guys. So part of you, guys, 1468 01:24:35.479 --> 01:24:38.520 we're gonna just shut it down. A lot of DMS, 1469 01:24:38.560 --> 01:24:40.960 I hear you, but minority gets a lot of them, 1470 01:24:41.079 --> 01:24:44.279 and I'm gonna use you talk about protect the book. 1471 01:24:44.720 --> 01:24:46.760 Get the book on Amazon. It should be in the 1472 01:24:46.840 --> 01:24:51.600 Nigeran bookstop. I think now there's gonna be Amazon for now. Guys. 1473 01:24:52.840 --> 01:24:55.199 What else and just look a quick look at the 1474 01:24:55.239 --> 01:24:58.199 dms and seen there's anything that is interesting. I like 1475 01:24:58.279 --> 01:25:03.079 this song I have. I have a house in Legos. 1476 01:25:05.760 --> 01:25:07.800 I have a house in Legos, but my family is 1477 01:25:07.880 --> 01:25:10.239 living in the house in Legos. I have a second house. 1478 01:25:10.319 --> 01:25:13.239 So he has two houses in Legos. His family is 1479 01:25:13.279 --> 01:25:16.479 living in one house. Would I classify that house as 1480 01:25:16.640 --> 01:25:21.000 an income being assets or a non income paying asset? 1481 01:25:21.039 --> 01:25:23.720 If ready to answer the question, it's your family paying 1482 01:25:23.800 --> 01:25:26.840 income if your family is not paying income. Again, like 1483 01:25:26.880 --> 01:25:29.439 I said, we're not talking to the accounting definition here. 1484 01:25:29.439 --> 01:25:32.520 There's the reason why we're making it income assets and 1485 01:25:32.640 --> 01:25:37.159 non income assets. If your family is living in that house, 1486 01:25:37.640 --> 01:25:41.119 I don't think they're paying you income. Right. The question 1487 01:25:41.319 --> 01:25:45.800 for you is are you paying interest liability on that home? 1488 01:25:45.960 --> 01:25:48.600 That's the question for you. That's the question for you. 1489 01:25:49.119 --> 01:25:53.359 If you've got that home, there's no mortgage and all that. Fantastic, 1490 01:25:53.560 --> 01:25:57.199 it's an asset for you and there is nobility gender 1491 01:25:57.199 --> 01:25:59.880 the size, so it's fantastic for you, but it's not 1492 01:26:00.159 --> 01:26:04.239 makes sense on a financial planning basis to go borrow 1493 01:26:04.399 --> 01:26:08.079 money and have a home and then give it out 1494 01:26:08.119 --> 01:26:10.079 to family members that do not pay you in the 1495 01:26:10.159 --> 01:26:13.119 rent because in what you've done that you've created an 1496 01:26:13.359 --> 01:26:19.359 asset and incured an interest bearing liability. But you've got 1497 01:26:19.439 --> 01:26:24.119 created a corresponding income, creating an assets. So your net 1498 01:26:24.359 --> 01:26:28.520 what is not just negative? There is no opportunity for 1499 01:26:28.640 --> 01:26:32.760 that network to become positive. I hear you don't confuse 1500 01:26:33.479 --> 01:26:36.520 income and value. I hear what you're saying that the 1501 01:26:36.680 --> 01:26:40.399 house value will rise. That's not what worried about here. 1502 01:26:40.920 --> 01:26:44.840 You can't go to a restaurant and tell me the server, 1503 01:26:45.439 --> 01:26:48.199 my house is worth one million. Give me a plate 1504 01:26:48.279 --> 01:26:52.520 of rice. No, you've got to pay for the plato rice. 1505 01:26:53.079 --> 01:26:57.039 So the house has got to generate income, that is income. 1506 01:26:57.560 --> 01:27:02.000 The value of the house is the asset. Remember we 1507 01:27:02.119 --> 01:27:08.720 are comparing income generating assets assets. It's not an asset 1508 01:27:09.199 --> 01:27:14.199 to interest bearing liability. It's the liability. You will not 1509 01:27:14.319 --> 01:27:17.159 saying that the income from the house makes it not 1510 01:27:17.279 --> 01:27:21.239 to be an asset. No, it's still an asset. But 1511 01:27:21.560 --> 01:27:24.840 what sort of asset is it? Is it giving you 1512 01:27:25.119 --> 01:27:29.800 income or is not? Follow your example and following yourself, 1513 01:27:30.079 --> 01:27:34.920 follow your example. The house is not giving you income, 1514 01:27:35.840 --> 01:27:41.199 But you've got a loone buy a house that is 1515 01:27:41.279 --> 01:27:44.760 not giving you income. So your network is going to 1516 01:27:44.960 --> 01:27:48.760 not only be negative, but you're not giving your network 1517 01:27:49.159 --> 01:27:54.319 any opportunity to generate income to pay off the lability. 1518 01:27:54.359 --> 01:27:57.119 There are two things there. The network itself is asset 1519 01:27:57.600 --> 01:28:02.960 less liabilities. But below that that asset will buried income 1520 01:28:03.079 --> 01:28:06.279 that goes to your income statement that should pay off 1521 01:28:06.319 --> 01:28:09.600 the liability on this asset is we're not worried about 1522 01:28:09.680 --> 01:28:13.039 the income or the liblist on our balance sheet. Don't 1523 01:28:13.119 --> 01:28:16.840 just put it up. We're not worried about the income 1524 01:28:17.159 --> 01:28:19.920 on the balance sheet. What we're asking is that is 1525 01:28:20.079 --> 01:28:24.880 that asset itself generating income. We're not asking the income 1526 01:28:24.960 --> 01:28:27.760 on the balance sheet, but we're asking is that asset 1527 01:28:28.039 --> 01:28:30.760 generating income? If it is fine? If it's not fine, 1528 01:28:31.159 --> 01:28:36.520 match then if you have an overload of interest bareing 1529 01:28:36.600 --> 01:28:41.760 liabilities your network. Our issue here is network, not liquidity. 1530 01:28:42.319 --> 01:28:44.920 Our issue here is network, then you would have a 1531 01:28:45.119 --> 01:28:49.239 negative network and not just a negative networks. On your 1532 01:28:49.399 --> 01:28:55.399 income side, you have no income to service this interest 1533 01:28:55.520 --> 01:28:58.079 bare liability. So you're going to be an asset reach 1534 01:28:59.079 --> 01:29:04.720 and cash just like Nigeria is. Nigeria has tons of assets. 1535 01:29:05.560 --> 01:29:09.039 We have oil fields, we have gold in Kebby, we 1536 01:29:09.159 --> 01:29:11.960 have palm oil. In Abia, we have cocoa in the oil, 1537 01:29:12.399 --> 01:29:17.720 but we are cash poor. We are borrowing one trillion 1538 01:29:18.479 --> 01:29:22.960 a month in Nigeria, but we have billions of barrels 1539 01:29:23.039 --> 01:29:27.399 of crude oil. So in Nigeria's case, Nigeria has got 1540 01:29:27.560 --> 01:29:32.960 a huge interest their reliability. At two years ago, Nigeria 1541 01:29:33.119 --> 01:29:37.560 was paying nearly ninety percent of her income to service 1542 01:29:37.600 --> 01:29:41.960 her debt ninety percent nearly today is down about forty 1543 01:29:42.039 --> 01:29:45.600 five forty four percent. So the income on the income 1544 01:29:45.640 --> 01:29:49.199 steans that that's making we're paying almost forty four percent 1545 01:29:49.359 --> 01:29:56.279 here to service our debt balance sheet. So the question 1546 01:29:56.439 --> 01:30:00.359 is now, is the ink the assets Nigeria gen written? 1547 01:30:01.720 --> 01:30:05.319 The assets Nigi genity with this debt? What's the asset 1548 01:30:05.439 --> 01:30:09.279 the railways, the roads, that's the assets, the education people, 1549 01:30:09.600 --> 01:30:12.840 We are the assets of Nigeria. So are the assets 1550 01:30:12.880 --> 01:30:17.840 and Nager wating out? Is it being funded from this? 1551 01:30:18.439 --> 01:30:20.800 Can we pay taxes? This is where the attax from 1552 01:30:20.840 --> 01:30:25.159 his past. Can the assets of Nigeria pay taxes to 1553 01:30:25.399 --> 01:30:29.479 coper the places of Nigeria. So it's the same principle everywhere. 1554 01:30:29.880 --> 01:30:34.520 Don't confuse income and assets. The point is on the 1555 01:30:34.640 --> 01:30:38.720 balance shifts that were worried about the net worth. What 1556 01:30:39.000 --> 01:30:41.920 are you worth? But on the income side, we're asking 1557 01:30:42.000 --> 01:30:45.920 you that asset and that liability are generated. What are 1558 01:30:45.960 --> 01:30:48.960 they bringing in? Because you need cash to eat. You 1559 01:30:49.079 --> 01:30:54.880 can't retire with assets. You retire with income passive income. 1560 01:30:54.960 --> 01:30:57.479 When you go to the hospital, you tell the doctor 1561 01:30:57.760 --> 01:31:00.079 has to pay my bill. You don't tell him I 1562 01:31:00.159 --> 01:31:02.199 have a house down the road. You say I have 1563 01:31:02.279 --> 01:31:05.720 a credit card or have cash at your check to 1564 01:31:05.920 --> 01:31:09.840 pay for my health. So you retire with income. The 1565 01:31:10.079 --> 01:31:14.359 business can generate income. If you have a business not 1566 01:31:14.600 --> 01:31:18.840 generated income, that's a problem. Help that clesant up. That's 1567 01:31:18.880 --> 01:31:22.199 a good question. Out that clean up. Yes, don't mix 1568 01:31:22.279 --> 01:31:25.840 two of them. It's still an asset, but it's an 1569 01:31:26.000 --> 01:31:31.039 asset generating income. That's our question, right, and the income 1570 01:31:31.159 --> 01:31:35.840 goes to the income statement. Fantastic, All right, fye, guys, 1571 01:31:36.000 --> 01:31:39.039 I do just a quick check. Not other questions here. 1572 01:31:39.239 --> 01:31:42.079 I love back A good way for to summarize. Let's 1573 01:31:42.079 --> 01:31:44.640 start wind down the space. So guys, who walk this 1574 01:31:44.760 --> 01:31:48.800 week around assta liabilities. Last week we're talking about income 1575 01:31:48.840 --> 01:31:52.159 and expenses. So what we're gonna do now is that 1576 01:31:52.279 --> 01:31:54.399 when I'm going to sort of set the stage up 1577 01:31:54.520 --> 01:31:59.199 for next week. Next week, we're gonna talk around asset management. 1578 01:31:59.279 --> 01:32:01.760 What we're going to gogle to say, Okay, we want 1579 01:32:01.840 --> 01:32:04.760 to invest. We've seen that we have we have to 1580 01:32:04.840 --> 01:32:07.479 make passive income. We've seen that we have to grow 1581 01:32:07.640 --> 01:32:09.960 our asset size to feel for our lab this side. 1582 01:32:10.399 --> 01:32:14.760 What sort of investments should we make to generate passive income? 1583 01:32:15.039 --> 01:32:17.079 What should we invest in? That's what I'm going to 1584 01:32:17.079 --> 01:32:20.359 talk around next week. How can we have an investment plan? 1585 01:32:20.920 --> 01:32:23.680 Where should we invest, how long? How should we do it? 1586 01:32:23.920 --> 01:32:26.439 How should we select investments? That's maybe be a great 1587 01:32:26.479 --> 01:32:28.479 topic for us to do next week. So again we'll 1588 01:32:28.479 --> 01:32:32.439 be here next week. Will we've been a good internet situation, 1589 01:32:32.960 --> 01:32:35.239 so we can share all our pages and you guys 1590 01:32:35.279 --> 01:32:37.800 can follow you wonderful and I drew up with you guys. 1591 01:32:38.239 --> 01:32:40.640 Last point, guys, please to get the book. It's it's 1592 01:32:40.680 --> 01:32:43.399 it's it's a fantastic book. I wrote it, got tons 1593 01:32:43.439 --> 01:32:46.079 of experience in this field. Ily want to just pass 1594 01:32:46.119 --> 01:32:48.279 that information across you guys, like I said, and that 1595 01:32:48.439 --> 01:32:51.399 book can really help because all these topics are out there. 1596 01:32:51.800 --> 01:32:54.439 We're just to pay twelve and we can't talk around 1597 01:32:54.439 --> 01:32:57.439 page twelve whilst the recording an audio version I will 1598 01:32:57.479 --> 01:32:59.039 say before the end of the year, which had the 1599 01:32:59.079 --> 01:33:02.199 all division our just in time for Christmas, so you 1600 01:33:02.279 --> 01:33:04.439 guys can get that as the Christmas give shp your 1601 01:33:04.439 --> 01:33:06.880 friend's gonna be way cheaper and we also listen to 1602 01:33:06.960 --> 01:33:10.439 the book. And also then all right, folks, on that note, 1603 01:33:10.760 --> 01:33:13.119 my name is Calu. Actually, thanks for journey with me, 1604 01:33:13.279 --> 01:33:16.079 spending your Sunday with me. Let's just say to end, 1605 01:33:16.119 --> 01:33:18.319 we're just in a prayer for the continent Materia. It's 1606 01:33:18.359 --> 01:33:21.279 our country, not an agi, and we don't have enough 1607 01:33:21.359 --> 01:33:23.800 nitty to the country. We just want to want safety 1608 01:33:23.880 --> 01:33:25.880 for all those that have been taking for their parents. 1609 01:33:25.920 --> 01:33:29.000 We just pray that Lord the Lord will bring them 1610 01:33:29.079 --> 01:33:31.680 back to their families in one piece. We know we 1611 01:33:31.760 --> 01:33:35.239 can return the emotional stay these kids around, but physically, 1612 01:33:35.279 --> 01:33:37.199 if we can just give them back to their parents, 1613 01:33:37.600 --> 01:33:40.119 that would be a big, big boost. Not for the nation. 1614 01:33:40.239 --> 01:33:42.800 We've got to pray for the nation. Lots of bad 1615 01:33:42.920 --> 01:33:45.000 actors going around. We're just going to make sure that 1616 01:33:45.439 --> 01:33:50.119 nations stays strong, united and of course solid. So that note, guys, 1617 01:33:50.239 --> 01:33:52.840 let me let you guys go. We have a fantastic 1618 01:33:52.960 --> 01:33:56.119 rest of your Sunday, and I'll see you guys next week. 1619 01:33:56.359 --> 01:33:58.119 Thank you so much and bye.