Now let’s focus on freeing up some more money for you to play with. We’re gonna help you make more money available to you to invest in plays you desire by really making better choices with how you use that money. Now I’m going to oversimplify the conversation on money and say that there’s really only three things you can do with money. One is to invest it. Two is to trade it, and three is to spend it. And what we want to do is as much as possible, have as much of your money going into investments, things that pay off for you in some way, a little bit of it going into trades when necessary, and absolutely as little as possible into expenses. Now, let me give you some quick definitions as I’m going to define them. That’ll help you understand this. When you give somebody something, you don’t always get something back of equal return. investment is going to be something as I define it, that gives you back more Than you put in a trade is going to be something that gives you back something of equal or similar value. And expenses give you back less in return. So ideally, we want to be able to be investing as much as possible. And we want to have that for big long term growth. So if I’m a farmer, I’m gonna invest money and time into my crops. If a farmer aligns with the laws of nature, that investments usually going to pay off. And effective employers invest money and time in their people. And if they align with the laws of business, those investments usually pay off. Effective parents invest money and time and also energy in love and their children. And if they align with the laws of life, that works out as well. So most great investments pay off over time, but not necessarily right away. So there’s patience that’s required for success. In addition to investing sometimes we’re going to need to trade for our supplies, our materials and our things. Now an effective farmer is going to trade money for raw materials, it’s more effective for them to buy the materials from someone else than to try to make them themselves. Farmers really make money in the farming business, not in the raw materials business. So while it might seem great to save costs, and try to get the lowest cost of their materials by doing it themselves, they really don’t need to do that. And in fact, when they’re negotiating, they don’t have to get the lowest price on the trades either. In fact, they want to make sure their suppliers stay in business and make a profit as well. So trades are meant to be Win Win, and they’re necessary and they’re a good thing. And effective employer is going to trade money for supplies and materials. The effective employer will invest in people in their future and demonstrate compassion and training and coaching and developing and really put something into the person and they’ll trade for things When employers trade money for people’s commitment, and that’s all they’re giving, usually, the return on that is very low, the commitment is very low. But the employers who invest time in people and also invest money in people get the best results over time. So as much as possible, we want to invest in people. We want to invest in proven systems, and we want to trade for things. Finally, we want to spend as little as possible. Effective, farmers spend money on almost nothing. crops that are likely to fail eventually end up as expenses, crops that the market does not wish to buy, and that is expenses. And anything that ultimately leads to a loss of money is an expense. And some things will appear to be investments, but unfortunately, will end up proving to be expenses. Now effective employers spend money as little as possible, as Well, failed investments eventually are considered to be expenses as with the farmers. But it’s not always easy to see that an investment will end up failing. This is why it’s so critical to avoid spending on known expenses. So spending is another word for wasting, it’s a waste of money. We want to avoid things that we know are going to turn out to be expenses. Never intentionally spend, that is waste money or time. Again, that’s different than perhaps giving up your time. Or having a loss leader that you believe might turn out to be investment that drums up other business. But when people talk about cost of acquisition, you know, I’m going to spend more than I make in because maybe I’ll make it up in the long run. Usually that does not end up to be a good thing. So what we want to be able to do is invest big trade little and spend nothing. We want to invest as much and often as possible in high quality people like yourself and projects and causes. We want to trade when necessary for high quality goods, needs and raw materials. And we want to never intentionally spend or waste our money or time. If you know it’s an expense avoided. Why would you spend it when you can invest or trade. And so on a personal spending standpoint, this might be something that you know, just decreases in value, the minute you buy it, is that latest fad is that thing you know, you’re not going to need in a month or two, but you buy it out of impulse. Those are the things that can hurt you as well. So sometimes, you won’t know until after and you’ll have to learn from your mistakes. But again, if you know it’s going to be an expense, it’s best if you can avoid that from the get go. So let’s look at some examples of investments, trades and expenses. investment, investing in yourself for personal growth, or a gym membership might be some instant investment if it actually gets used. emergency savings, retirement savings calm savings prepaid college, those might be investments. A student loan might be an investment in yourself, if it’s going to help you get an education that helps you further your development or some other objective you have. supporting a charity, education or cause. giving a gift or paying it forward might be an investment in your community or the people around you. An example of a trade might be the rent for your home, utilities for your home, car insurance, home insurance, car payments and gas, healthy food, your telephone line, life insurance, health insurance, entertainment, vacation, recreations and hobbies. So these are things where you give your money, but you’re getting something back and so that’s a pretty good thing. And then there are expenses, addictions, bad relationships, unused items or unused memberships, unused insurance that you didn’t need, credit card interest, overpriced car or any overpriced Item, junk food, loan interest tax penalties, late fees and bank fees. All of these are things that hurt you financially and really don’t offer any gain for you in your life. So where is your money going? Which of your outflows are investments, which are trades in which are expenses? And the exercise for this section, what we’re going to do is ask you to indicate what investments you’re making and how much that’s invested per month. What are the trades you’re making and how much money is going there per month? And what expenses are you making and how much you’re wasting per month? Take the time to really go into this in depth if you need to consult your credit card statements or your bank statements your Quicken however you do things and make sure this is accurate, because this is one of the best areas where you can very clearly make a gain without having to do extra work by simply cleaning up inefficiencies that are hurting you. If you have any questions on this exercise please let me know. Put them in the comment section below. As always, I look forward to helping you make more money in less time. Don’t you do best? Do this exercise and we’ll see you in the next video.