Millionaire Motivation - What To Do With Your Money

Let's talk now about what to do with the dollar, especially for teenagers and for kids. This is really important because this is one of the best places to start when you're like 15 years old mid-teens. This is a great place what to do with the dollar. Now, here's the tendency on attitude because attitude determines so much of our lives. What difference does it make if a child has a dollar when you ask what should he do with it? It's only a child and it's only a dollar but see here's where it all begins. Your financial journey begins with what you do with the first dollar. It's where it begins. Now sure you can do the wrong things and finally correct that get on a better path, but it all begins on what you do with your resources. Jot this phrase down. It's one of the best for the weekend. Here's the two challenges of life. Number one, the development of our full potential. That's challenge number one. Challenge number two is the wise use of all our resources. That sums up life in general. The development of all of our potential and the wise use of all our resources. One of our resources is time and we talked about that. Now we're going to talk about the wise resource called money. And let me share with you now a little plan because when I met Shof and he asked me about my financial condition. He said how much money have you saved and invested the last six years? And I said zero. He said not a good number. Here's what I told him. If I had more money, I'd have a better plan. Now jot this down because here's what he said. If you had a better plan, you would have more money. Next key phrase. It's not the amount that counts. It's the plan that counts. So let's start with something now as seemingly as small as $1. What should you do with it? Here's what we teach teenagers, especially. You should never spend more than 70 cents. Never spend more than 70 cents of each dollar you earn or each dollar that comes your way by gift or by labor. Now you've got to have some plan what to do with your dollar. I've developed this little plan simply for suggestion and then you've got to do the rest or revise it and do whatever you want to with it. But here's what I teach. Never spend more than 70 cents. You got to pick something, some number. This is the best one I can figure out. Now we've got another 10 cents and another 10 cents and another 10 cents, which is the 30 plus the 70, which is the full dollar. So we spend nothing more than 70 cents. Now, what do we do with the other 30? Here's some of the most important information. 10 cents is for charity or for church or whatever worthy projects you think you might engage in. Here's one of the best things to teach kids, generosity. Because first we're going to teach abundance to provide more than you could use for yourself. The be fruitful philosophy means to produce more than you need. So you have more than necessity. You have some to share. Some churches teach a 10% of tithe, they call it, which is fine. The key is to either administer this 10 cents yourself or to give it to some institution, a church or whatever and let them spread it around. Let them put it where it's needed. Now, if you're going to give to some charity or church, you must let them take you on the tour and show you where it goes. If you part with the money, let them give you the tour. Here's where the 10% goes if you're going to talk. Because now that gives you great joy to give to us because you say, hey, here's what it's doing. Here's what it's doing. Here's where it's going. Now, the next 10 cents is called the use of capital. Here's what capital and capitalism is. So jot this down. Capital is any value you set aside. Capital is any value you set aside to be invested in an enterprise that brings value to the marketplace, hoping to make a profit. That's what capital and capitalism is. I can say it in one sentence. Capital is any value you set aside to be invested in an enterprise that brings value to the marketplace, hoping to make a profit. Now, the capital is the value you set aside. Taking capital and investing it in an enterprise and bringing the value to the marketplace we call capitalism. Capital and capitalism. Now, who can understand this? First of all, the farmers understand it. Here's what seed corn is. It's capital. It's seed corn means the seed that you set aside to be planted in the ground, take care of in the summer, hoping to have a profit and a harvest in the fall. So the farmer sets aside his seed corn. Question, would he let his family eat it? No, this seed is not to be eaten. It's to be invested in the ground to take a risk, cared for in the summer, harvested and multiplied in the fall. Now, the same is true of some of your money. If you set aside, and I suggest, part of your capital should be set aside for an enterprise to show a profit. And we can teach kids the early fundamentals of capitalism. Now, once the kid has a dollar profit, now what should he do with the dollar? This is the formula that I've come up with what to do with that dollar. Don't spend more than 70 cents. 10 cents for church or charity. 10 cents to invest back into your business so that someday you can buy more than one model and get it a little cheaper so that when you sell it, you make a little more money. Now, here's the other 10 cents. It's 10 cents that you invest and let someone else use it. This is called active capital, where you actually engage in the enterprise that makes a profit. Now, another 10 cents is for passive capital, where you let someone use this 10 cents out of every dollar. You put it in the bank that pays interest. They use it and they pay you for the use of this money. That's called passive capital. So we've got active capital and passive capital. Maybe you invest this in a stock eventually if you have enough money and the stock pays you dividends. And also there may be an increase in the value of the stock. So this is the little formula I come up with 70, 10, 10 and 10. It's very simple. And kids can figure it out. Kids can understand it. Enterprises that kids can be involved in starting early. Now, when you first start, if you're an adult now, you may be in such bad shape financially that you couldn't do the 70, 10, 10 and 10. If you're in real bad shape, you may have to do the 97, 1, 1 and 1 because it may take this to pay your bills if you haven't had a good plan up until now. But jot this down now. It's not the amount that counts. It's the plan that counts. So let's say you were in such poor financial shape. You had to start 97, 1 for charity, 1%, another 1% for active capital, another 1% for passive. Now, here's the key. To get these numbers starting up and get this number starting down. If you will actually do this, you can't believe how exciting it is to watch the numbers change. Remember what Shoke said. If you will change what? Everything will change for you. If you start to change, I'm telling you, these numbers will start to change. And the first thing you know, these numbers keep going up, up, up, up, up until finally you can get to the 70, 10, 10 and 10.