#6: Are you planning for your Future self...

newsletter May 06, 2023

Let's Break the Money Rat Race.

I don’t want to live this way.

That’s what I was saying in my 20's when I noticed something about our culture.

Life was being presented as going to work, getting the biggest title, getting a mortgage, buying stuff (monthly payments), adding a few cars and kids, having beers on Friday, going to Costco and kid activities on Saturday, then recovering on Sunday. And do this until age 65 socking money into a 401K.

I love my son’s soccer games! But this cycle for 40 years, no thanks. And many of you don’t want it either.

 So, in 2002 I created my own Freedom Plan.

Give yourself a why…. (i.e. family, Lifestyle).
Stop buying unneeded stuff and forcing you to work.
Pay yourself first. The “Future You” is the #1 bill.
Store money vs. Saving money. Stay broke (not poor).
Build up enough in storage to buy an asset.
Buy/create assets that pay you (stocks, real estate).
When it pays, store that income + add your paycheck.
Buy another asset.
Press repeat.
Press repeat again.

Age 26, 2002, started with condos for $90K.

Age 47, 2022, 5th $25M+ complex in 19 months w/ partners.

Consistently used paycheck + self-education over time.

I was just boringly consistent. Nothing special.

I’m not suggesting you do big real estate deals like me. I’m suggesting you build up the habit of paying yourself first to buy assets that pay you and keep educating yourself on the topic.

I post my plan a lot, but I don’t talk about the mindset of it which is key. So, let’s walk through steps 3, 4, 5, and 6. It’ll give you a better perspective. Thanks for being a part of my newsletter. Here goes...

The Mindset of Steps

3. Pay yourself first. The “Future You” is the #1 bill.

Future you must be the #1 bill. (Please re-read this again and again).

We’re trained to get paid, pay our bills (i.e. electric, gas), go out, and save what’s left. Rewire this habit. As a priority, when I was paid, I systematically (automation is key) sent large portions away for storage (see next step) before I even looked at bills. If the gas bill was late it had to wait until next month because FUTURE Maurice is the #1 priority. The gas company is not.

Feeling broke because you're always storing money? Good. That’s the point. Store the money before you go spending it.

The world is designed to take money from you (tolls, speed cameras, credit cards, dinner out). Before you let it, get rid of it. Store it away for investment. Pay your future self first. Why is the cable bill more important than you?

4. Store money vs. Saving money. Stay broke (not poor).

Flip the mindset from ‘I am saving money’ to ‘I am storing money’. Stored money is intentional. That money is pending a date to be deployed to buy an asset. That’s the purpose of storing it.

Yes, you will sometimes feel broke. That’s what we want. This is related to a Try Life On principle:

Make your investing life easy & your day-to-day life hard.

I struggled all the time with day-to-day things on my journey, but storage kept growing.

My storage account (savings account really) is at a small regional bank. Money get transferred to it systematically every month. Here’s the key… Money goes in easy but it’s very hard to get out. No debit card, no linked transfer out, etc. For me to get it, I purposely have to call and request a form to wire it out. I made it very difficult for myself to get it so I won’t use it for trivial things.

NEVER STEAL FROM YOURSELF. NEVER ROB YOUR STORAGE. If you have a life need, deal with it from active pay, to the extent possible.

5. Build up enough in storage to buy an asset.

If I need $25k for a down payment to buy an investment property and I am storing $2,500 a month, then I will buy that asset around month 10. Simple as that. Money is used to buy assets, only.

6. Buy/create assets that pay you (stocks, real estate).

The choice of what to buy is a very personal one driven by lifestyle-related goals.

I choose real estate because of cash flow. I live off of it. That doesn’t mean you have to. You may choose a business, stocks, bonds, gold, bitcoin, etc. Doesn’t matter. What matters is you’ve built the habit of storing money to buy or build assets.

Now What? What’s the next step?

Well… the level of income or equity created depends on the time & effort you put in. And the level of income or equity you need depends on your lifestyle and goals. There is no boilerplate answer.

When I reverse engineer financial freedom plans for coaching students, we have to tailor them. You have to tailor yours too.

My results were as follows:

Took 7 years for more income than expenses (2008). Life changed. Was in total control as basic needs were met by me, not an employer. Opens up life in ways not easily explainable.

Took 14 years to generate more income than from work (2014). Can be done way faster. I was inefficient. There are more resources available now.

It’s year 26. My assets buy assets. Modest pay is enough. My average salary was $80k.

How will your financial freedom plan work for you? Is your mindset starting to shift?

I hope so.

Talk to you soon,