Sick of Living Paycheck to Paycheck? This is the Mindset Shift You Need

Speaker A: 00:00:00

Welcome to make your Wealth Work, the podcast where wealth becomes your greatest ally in achieving your dreams.

Joe Pantozzi: 00:00:07

There have to be many, many things running through the minds of clients and prospective clients when they decide to engage with myself or my firm or any financial coach.

And I'm sure there are lots of things running through your minds, not the least of which is abject fear, because you're probably on the verge of saying to yourself, I have to decide that I'm going to be sick and tired of being sick and tired.

I am tired of being in the same place that I've been year after year and decade after decade and making excuses for not having achieved the level of financial success that I feel that I'm entitled to, that I feel that I've worked hard to deserve, that I feel that I should have achieved.

After all these years of sweating and working and changing jobs and getting bonuses and getting increases and building my business, why do I not have the net worth that I think that I should have had by now? And please let me reassure you, we are all in the same boat.

The only difference maybe between where my net worth might be, by the grace of God, is just that I've got more years on the planet. It's not that I'm smarter. It's not that any financial coach is smarter.

It may be that they took some principles that they were given, by the way, because there's nothing unique. They took some principles that they were given and they diligently put them into practice.

And for me, I'm going to be terribly plain about this and say, yeah, I put them into practice because I was afraid of the alternative. I was afraid of poverty.

I was afraid of Getting to my 70s, 80s, and 90s and looking at my net worth and putting pennies together and trying to scrape dollars together and looking in the mirror and saying, wait a minute, I counseled clients for 30, 40, 50, 60 years about becoming better stewards of their own resources. And here I am, having not followed my own advice, having not followed the advice of the giants that came before me.

So I know that that's a terrible motivation for you to listen to, but maybe some of you identify with it. And I'm not concerned about 300 million Americans identifying with who I am and what I believe.

What I believe doesn't matter for your financial health and wealth. What you believe is what matters.

And if I could scratch the surface with a few dozen or a few hundred people or a few thousand people over my lifetime, over my career time, and over the time of our agency helping people, then that is about all we can expect. My wonderful and precious and blessed mentor, Nelson Nash said, we want to reach the 10%. 10%.

Now, that may not be 35 million people out of 350 million population. That may be 10% of the people who actually pay attention. And I don't know what that number is. And it doesn't matter.

I'm here talking to you, and you only need to continue listening to me. Maybe because you're sick and tired of being sick and tired.

And I'm sure that even we have been guilty of leading with product and leading with strategy and leading with model and leading with this is what you should do. You should do what you decide to do. You should do what's best for yourself and your family and your business and your posterity.

You should do what you decide is going to be in your best interest. And if we can help you along the way, we're happy to do that.

Probably the most important thing that we can do with our clients is brainstorm with you and help you get to the real crux of the matter.

Is the real crux of the matter the fact that you've got too much debt, or is it the fact that your mindset allow you to get in that debt in the first place and continue to allow you to languish in that debt for a period of months, years and decades? So the notion of getting sick and tired is looking at this pile of debt and saying, you know what? I don't want to do this anymore.

This isn't working for me.

And it doesn't matter whether you're a wage earner, a W2 employee, or a business owner, because I have plenty of business owners who have wonderful hearts, who love their families, who love their employees, who love their customers, who love the business that they're in, and they're in the same position? I'm sick and tired of grossing this giant number and bringing a few pennies to the bottom line for myself and my family and my employees.

I would love to be able to pay out quarterly bonuses, for example. But, you know, for some reason, our business model isn't working.

And so part of an engagement between ourselves and a client is typically going to involve those hard questions at the very beginning. Where is it that you really want to see yourself three years from now, five years from now?

What is going to be different in the way that you prosecute that plan that is different than the way you've done it in the past 10 years, 20 years, 30 years, which has gotten you less than optimal results. So when we talk about the stages of ibc, it's really the stages of wealth creation. It's the stages of getting better.

It's the stages of pulling yourselves out of the doldrums that you've been in and saying, I want to do something different. I'm sick and tired of being sick and tired. What are the stages? Well, first of all, we want to make sure that we protect what you have.

Let's look at the protection elements in your financial life and find out if they are in place. We beat this old drum of wills and trusts and estate planning and I'm not going to spend a lot of time on that right now.

But it is something that you should consider. Who is going to get my stuff later on when I graduate, under what circumstances and what are the rules and conditions that I will lay down?

Maybe that'll be part of my family constitution involving the financial aspects of my family. The, the financial assets, the financial wealth that's going to be passed down. How is that going to be passed down?

That's part of the protection element. It's a very fundamental piece. Protection. How do I protect my paycheck?

How do I protect my income going forward if I'm sick or hurt and can't work and can't produce income and revenue and profits for my self, my family, my business, the causes that I care about? This is all in the subject of protection. We have to talk about protection before we can go forward.

Too many people want to hit that grand slam home run tomorrow when they haven't put the foundations in place, namely protection first. Now let's go to the next section. Saving. You need to protect before you can save. You need to protect that income before you can save part of it.

You need to save a piece of every dollar that you grow, that you bring to the bottom line. And that savings, that capital has to continue to grow year by year by year by year.

So that if you never go out on a limb and open up a new business, or never open up a second business or a second branch or a second type of product and you stick with the first one that has got you where you've, where you've gotten to today. You need to continue to build that capital base.

And that does not get diminished by gifts, by vacations, by Christmas, by emergencies, by medical issues. That capital base is going to continue to grow year after year after year. What if, let's just pull a number.

What if you only save $30,000 a year for some of you, that's an insignificant number. For some of you, it's a mountain. We're talking about concepts here. Don't get caught up with the numbers and where the decimal place is.

What if you only save $30,000 a year for the next 20 years? That's $600,000 in an account someplace not considering interest or earnings. $600,000.

If you were sitting here today with $600,000, looking back in the past, what would you say about having $600,000 worth of capital? You'd probably say, I just won.

I can now call myself a genius because I got past all the noise, I got past all the people who have 10 times as much and all the people who have nothing. For myself, I built up that $600,000 plus growth. Maybe it's triple that because of growth, maybe it's not. It doesn't matter.

What happened is you beat Parkinson's law. You got out of the doldrums. You stopped being lazy and making excuses for not being able to save that $30,000 a year no matter what.

That is net, net, net net of all the gifts and Christmas invocations and emergencies. So saving capital creation has to happen before you can build true wealth.

We talk about using the infinite banking concept, for example, to finance all our cars. And yes, I have not taken a car loan in over 20 years. I should say it this way. I haven't taken a car loan from a commercial bank in 20 years.

I've taken a car loan from an insurance company using the capital inside my life insurance policy as as collateral. And if others describe it differently, that's fine. This is the way I describe it. I am not borrowing from my policy. Let's get that straight.

So many people say I'm borrowing from my policy and paying myself back. Not true. I'm borrowing from an insurance company. I'm using my policy as collateral.

I'm paying the insurance company back the interest that it's charging me that are may or may not deduct as a tax item. I'm paying the insurance company that interest that I owe them because they lent me their money out of their capital out of their general fund.

My insurance cash values were not touched. They were leaned, they were collateralized, but they were not touched. So let's get back to the issue.

I haven't borrowed from a commercial bank or lender or finance company or car loan company in over 20 years. I've taken loans against the values of my life insurance policies and I call that my family banking system. Now we Call that recapturing debt.

Did I make money on my cars? I absolutely did not. Because I made money because of the mechanism of borrowing and repaying.

I made money because of the debt discipline of building up that capital while I was using that capital to collateralize a purchase, I.e. expense or debt recapture. There's a difference between debt recapture and wealth creation.

The next level after protection, savings and growth is wealth creation. Wealth creation, growth, expanding your system, becoming more entrepreneurial. I hate that word.

Looking to other areas, other industries, other investments, other asset classes that you may not own today, that you may want to own in the future. You may want to expand out to owning real estate, for example.

And as you build up your capital base, you may use some or all of your capital to put down payments to buy cash flowing passive income, creating real estate. In this case, you're using your banking system to create another asset. So now you've got two assets.

You've got the capital that you've created in your system, in your life insurance policies, and you have the other assets, the other businesses that you're creating from nothing because you had access to capital that no one else can tell you yes or no, Only you can. So we're expanding our system and we're creating wealth because we're starting from the ground up.

Protection, savings, growth, wealth creation, expansion, generational wealth capitalizing and making gifts to causes, churches, charities, ministries, missionaries, things and causes that we care about. It all starts with understanding the stages and getting these stages in the proper order. It's starting out with the passion for something.

For many of you, I would love from my heart for that passion to become based on being sick and tired of being sick and tired. And again, if you do nothing in the next 10 or 20 years but put that capital aside and look back and say, you know what?

I didn't take a dime's worth of risk. And now I've got hundreds and hundreds of thousands of dollars of accessible capital, liquid capital, ready cash that no one can restrict against me.

No one can tell me how to borrow it, nobody can tell me how to withdraw it. Nobody can tell me I have to pay taxes on it. Those are all details we can discuss in later sessions. But control is a beautiful thing.

Freedom comes from control. The more wealth you build that's under your control, that's not under somebody else's control.

The more freedom you're going to have, the more wealth you're going to have, the more comfort you're going to have, the more satisfaction in your own creating your own generational wealth system and one that you can pass down to your kids because this is not so highly sophisticated that anybody cannot do it. You don't need a PhD or an MBA to do this. You do need discipline. You do need the notion that you're now sick and tired of being sick and tired.

And I can help you how to create generational wealth and helping you pass down generations of millions.

And in future sessions, and in one on ones, we'll talk about the reason, the absolute necessity, why there needs to be wisdom attached to this inheritance.

Please don't plan on passing down millions to your kids without transmitting the wisdom to them that they're going to absolutely need if they're going to prosecute this plan intelligently and wisely and prudently. If they're not going to be mindful about the fact that they are a steward of somebody else's money. Whether it's God's money. Yes.

Whether it belongs to the future. Yes. Whether you're only stewarding it for a short period of time. Yes. Let's get some true satisfaction.

Because not only did we enjoy the work, we enjoyed the fruits of our labors and we enjoyed the fact that we can now retain some of that capital so that in the future we don't have to ask anybody else's approval or permission to do anything with this capital. We can do with it as we wish, according to our values and our family's needs and wants and where we want to take it in the future.

Look forward to speaking with you soon. Call us for a one on one. This is MAKE YOUR money work. Make your wealth work. Alpha Mega Wealth. Talk to you soon.

Speaker A: 00:17:04

This is the podcast for factory.com.

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