Saving with Steve, November 14, 2023
Saving With Steve with Steve Sexton
With Guest, Steve Davis, on Young People
Episode 155: What Young People Need to Know About Finances
The Save With Steve Show, hosted by Steve Sexton will help you with ins and outs of money. We talk about financial issues that that could be costing you thousands of dollars and keeping you up at night.
We talk about “money”… tax reduction, saving more, how to spending less and get more, 401k’s, risk management, retirement, and everything under the sun that relates to you having a healthier happier relationship with money.
everyone has their own unique views and needs when it comes to financial success if you'd like to leave your financial woes behind and live a life of Financial Freedom you've come to the right place welcome to the saving with Steve show hosted by Steve Sexton the show will help you with the ins and outs of money we talked about financial issues that could be costing you thousands of dollars and keeping you up at night we talked about money tax reduction saving more spending less 401K risk management retirement and everything under the sun that relates to you having a healthier happy relationship with money now here is your host of saving with Steve Steve Sexton<br> can we talk about the ins-and-outs of money pretty much everything on the side of relief to you having a happier healthy relationship with money my name is Steve sex and I want to thank you for joining us today thank you for sharing with your friends and family and went to have a refill of segment I'm going to talk about the impact of inflation but we really have a wonderful topic today and here's a question what should all younger people understand about finances and for the segment we have Steve Davies he's a CEO total wealth Academy he's a radio host after 30 years of coaching and setting successful people Steve is figure it out formula at work the key to the second stream of income above and beyond your job Steven chest on everything from finances to romance cash too well Steve has been featured in good at Houston Ford cancel NTD news and more Stephens phase a hundreds of thousands of people seeking<br> practical to path to financial empowerment so Steve I want to welcome you to the show thank you for being here thank you for having me it's an honor actually the honor is mine because this is a topic that is very near and dear to my heart I think it's very very important for people who are younger to start understand what's going on in the financial world I just got to say that there's too many people that don't understand stuff and I know they're not teaching in school and most people don't even learn it while they're in college and they typically have to learn it on the seat of their pants or they have somebody like you were they going listen to the radio show I think it's very very very important questions I love to ask people this what got you into the business will what happened for me because I was on the corporate I had been given a map to success the same one everybody is given you no go to college get out get a job with a major corporation with high pay and goodbye<br> then scrimp and save work for 45 years retire and live off your savings and that was the model I was using well the fifth year in I was working 60 70 hours a week won a national sales contest won a trip to Hawaii and when I got back from Hawaii they cut my pay by 20 grand a year and what that did was it woke me up to the dangers of depending on a job for your income it's a high-risk position and I started this was in the eighties this was 89 I couldn't sleep I was losing my wife because I was working 70 hours a week nobody likes this joke but if you're working 70 hours a week who's Romancing your wife it ain't you and I was like losing my wife I'm broke I'm now negative cash flow because they cut my pay there was this thing on<br> late night TV called an infomercial commercial where Carlton sheets Dave Del dotto Tommy boo all these guys talking about investing in real estate and so I took my last credit cards and bought about $30,000 worth of books and boot camps and things like that and started investing in real estate initially I really wasn't an investor I was a wholesaler in flipper that's not true investing but I was at least in real estate three months later I was able to quit my job because I was making more money with that than I was at my job that allowed me to rescue my marriage because I no longer had to waste those 60 70 hours a week I was only working maybe 10 or 12 hours a week I just started studying and reading everything I could get on finance money well-balanced<br> and I love to teach it I would share it with my friends and for some reason I had I don't know what it is fun it was just fun to share the ideas with my friends and none of them did anything with it but it was fun to share the ideas and show them what I was doing eventually I realized that's what I love to do with t h I keep my money in real estate but I'm all passive in real estate I don't do any active investing I spend all my time teaching so that's the short version of how I got into well hey that's wonderful in that actually there's probably almost everybody on the list listening to say his experience that is what I mean by that is I went from developing business is overseas and not wanting to travel to working for a major corporation here in the United States I purposely took a lower position<br> and I was dropped into the worst location in three months and I'm sitting at this executive meeting where they're all talking about you know where we give our plans and how we're doing and why we're doing and all that stuff three months later I was moved into another office it was the worst one of the bunch and it again and then next thing I know I'm getting moved from office to office building it and somebody else is taking it over and they're making the money while I'm staying down here and I'm like yeah I can't do this too long so I actually got up for the same reason because I saw that and my daughter she just graduated got her Masters which is really great but she's got a friend who has been working and just got married in their husbands and great job and all that stuff and he just got laid off cuz they're doing a downsizing so the reality of a<br> the layoff is pretty prevalent in the reason why is because back in the seventies people they work for 30-40 years and they were able to stay there but now you might have four five jobs throughout your lifetime that is so true and people don't realize that I heard one time Steve that the average person only stays on the job for 7 years will you divide that by 45 years what is that that's six or seven job something like that when you said that's the risk you know and the reality if you work for yourself it's entirely different you can make your own way I really think that's important but I also think it's important for younger people to understand that so they can look at taking a different path or paths that better suits them let's start with the very first question why should your anger people be learning but love your take on that the reason is and you mentioned it<br> which excited me we understand that the same way they don't teach it in high school and if you want to get it in college you got to seek it out it's not in the standard or required program they just don't teach people about money and this goes to the point that the rich are teaching their kids differently than the poor in the middle class when my son was eight I gave him a copy of the richest man in Babylon by George Klassen and I told him I said Son you need a second stream of income now let's go do some Legos<br> and when he turned nine 10 11 I kept reminding him remember to build a second stream of income when he turned eighteen I said okay remember build a second stream of income and by the time he graduated college he had 11 rent houses and $4,000 a month in second stream of income and people will say well your son must be brilliant he must be a hard worker I'm telling you he is but so are you so is every listener their brilliant they're hard workers but how many of them were told to do the second stream of income when they were 8<br> none of them so they went out with a different map and it's sad to say but that Matt doesn't work very well anymore if you look at the statistics and you really analyze them 95% of Americans really are failing to retire by age 65 95% and they're becoming burdens on the government ordinance on their kids<br> that's not their goal those people are good people they work hard for 45 years but they had the wrong now I definitely don't disagree with that and I think that's really important one of things to say saved many people pick on the same financial habits of their parents because they're doing what they see not doing what they're told so you showed your son hey this is how I go about do this and you probably wouldn't let you a couple of times but you kept redirecting at reiterating reiterating it and I think that's really important for people to understand kids are going to do with AC not with their been told ya and Steve the other thing is there's a you know that map that I gave it's actually a y<br> just say you know you're going to work for 45 years for the same company you're going to be able to save up two or three million bucks it's a lie but the people who are telling it don't know it's a lie in other words the parents are telling him that now then they go to high school the high school teachers tell him that man when they go to college the college professors teaching that map here's the problem where your parents High School teachers are college professors multi-millionaire entrepreneurs no they don't know how to be successful they're giving the wrong map over and over again and here's the cash they don't realize it's the wrong that till they're 6570 or dead<br> so it's not getting past on my dad when he was 65 put his hand on my shoulder and he goes Steve I'm glad you're investing in real estate because what I did didn't work I don't believe there's many men or women that have the fortitude or the courage to say that to their kids but I'm so glad he said it to me everybody wearing a stop right there you want to stick with this we're going right back with more shaving with Steve and Steve Davis more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the ins-and-outs of money those financial issues it could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending less your investment risk management retirement and everything is so she ate it with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us<br> will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton they will come back to the saving with Steve shall we talk about the ins-and-outs of money pretty much everything under the sun really see you having a happier healthy relationship with money I truly want to thank you for tuning in appreciate you letting your friends & Family Associates know about the show all the replacer available at saving with Steve. Us and if you're enjoying the stories of helpful information inside on saving this season and encourage you to subscribe to your YouTube channel you probably don't want to miss so some of our feelings here you can help radio BBS radio talk radio in New York City e360 TV in Las Vegas TV networks all these networks are dedicated to him for you to solve problems uplift your spirit and live a life of personal financial Freedom you can also follow us on Facebook at sitting with Steve sex and being an Insider's Club you can see them to sign the sheets.<br> you can eat you can see today we have a Transformer pole and go down so we had to stop and start again so that might be interesting to you all as well. We have Steve Davis he's the CEO of total wealth Academy's we've been talking about what should your anger people understand about finances so Steve welcome back to the second part of the show going to be here here's one of the big things that we want to go through town should younger people be taught I think this my opinion is that people should go back in time<br> to the early 19th century if she knowed there was Andrew Carnegie Napoleon Hill George Klassen and that was when they really began to study human success self development at least I know they were self-development forever probably three thousand years but those books are the starting point the problem is that it's hard for a parent to teach a child about Finance if they don't understand it under sink so they've got the read the books as well the richest man in Babylon by George Klassen is a masterpiece and probably the most important Financial book I've ever read<br> that explains starting with nothing and ending of the richest man in Babylon every step of the way so I think reading is the number one thing but a close I would say it's a tie with it's our responsibility as parents to do well financially because you brought it up earlier<br> if you tell your kid to do something different than you're doing they don't hear you they see what you're doing if you go through life living paycheck-to-paycheck working jobs you don't lie and you're unhappy you're teaching your kids to do that to it is our responsibility to do well financially so you got to read you got the Excel and Leadership because leadership is by example<br> that's how you teach your kids by showing them is wonderful we have this day when my kids were young in school and they brought me in there because like you I seen you on the local news shows and I've been a member of those things are more than 15 years now because I had for some reason been on a whole bunch of them in a short. Of time they had me come in and talk to the kids they asked me to do a little class on budget in your Finance for a little kids and I asked them I said hey what's the thing you want to buy what do you want your parents to buy in somewhere saying Lego some girls were saying dolls and stuff like that I said so how much money does that cost<br> I don't know I just want it premiering I pulled up the Lego set and there was $12 I said you have $12 just now I said how you going to get $12 and I said well I did a dollar week for allowance so how many weeks is going to take you to say about 4 that Lego set and he says well at least 12 weeks I guess you're not going to spend any injured while we are I want to get some lunch and stuff like that it should well okay so how are you going to have to say then he realized that he was going to have to shave for almost 30 weeks to get the Lego set because it was spending I said so what are you going to stop spending on in order to get there they started getting it that hey I'm going to have to stay for this I'm going to have to do stuff to get this my parents aren't<br> banks nearby I'm going to want to get these things and I think one of the things that you're saying is people need to realize early that Mom and Dad aren't the bank and they've got to do things on her own just like you taught your son<br> yes and I also think Steve we've got to get away from telling people to save what they don't have I've never saved the million dollars but I've made a million dollars in other words to save a million dollars you got to make it and telling American citizens you know you need a million or more to retire but I always doing the math after 45 years with an average income around 50 Grand a year which is what it is in the US that's 2.2 million dollars<br> at the end of 45 years or 2.5 million dollars and we're supposed to save a million of that<br> what about garbage gas electric water mortgage insurance cars Transportation fun what about enjoying your life a little bit during those 45 years I think that we need to spend about 5% of our time on budgeting and saving and 95% of our time on making more money building a second stream of income when you look at the 5% of Americans who do retire successfully<br> almost all of them had multiple streams of income second and third and fourth and I think you know I always say 70% use real estate will a guy corrected me the other day and said it was 90% used real estate to do it that you got to work on making more money this concept of save save save budget budget budget if you don't make it you can't budge it or save it you've got to figure out a way to make more money people complaining about the minimum wage it doesn't get you anywhere no and it goes back to your point about it I mean if you live in California $50,000 put your property okay I'll just the way it is because the cost of living so darn High you can't even for a home if you got $100,000 in California okay you're going to have to have chewing cuz you're not be working all the time cuz it's so expensive<br> the reality is if you're not making more money or finding ways to make more money you're never going to be there so I totally get that now I have a question for you Steve you have your radio show how to make your organization total wealth Academy what we do is we teach people how to use real estate to build a second stream of income both actively and passively active would be single-family passive would be commercial big apartment complexes self-storage complexes and what people do is they're taking their 401ks and IRAs moving it out of the stock market and investing possibly in the syndications that are buying apartment complexes and our internal rate of return has been over 20% on every deal we've done over the last five years is starting to get a little high<br> because prices are dropping but we're making three times what the stock market does and is cash flow it's not just Equity its cash flow bills come in in every month you need money every month cash flow comes in every month so that's what's changing people's lives where is I like the way you said cash flow because the reality is retirement sorry about the income you have to create the lifestyle you want and if you remember if you don't have the income it isn't going to go anywhere million dollars you just don't you know that's great the million-dollar but you're not able to keep do you create an incoming what we've seen in the last year we seem to 20% decline in market prices show me see a 20% decline in market prices from the stock market hey I only have $800,000 when I used to have a millionaire<br> structure right and when you're talking about is hey we see the fluctuations with a real estate but it never completely goes away in the rents are always still there so you always have that cash or which makes it a more stable income and what is the way to look at things<br> yeah the what people don't think about and I know what I'm about to say is brutal but if you save your way to retirement and you even walk away with a million dollars at 65<br> you know what you're praying you're picking a God and going God please kill me before I run out of money that's not a good way to live if you build a second stream of income it comes in whether you live 10 years or 50 years in retirement doesn't matter so your point about cash flow<br>yeah I like the way you said that and I hope you don't mind I'm going to use up anytime cash flow is is King because the bills keep coming in and then the other misconceptions that your bills get lower as you get older cuz your kids are graduated college and all that but they forget about medical expenses<br> CPA friend of mine goes yeah it's $700,000 to live to 84<br> the average couple will spend $700,000 in medical costs if they live to 84<br> crazy that's not something that hard to ensure a steady we're coming to the end of our segment here how can people get ahold of how can people get connected with you so they can look at building a second stream of income and maybe create a stable income almost like a pension for their lifestyle and retirement that's what it is it's like your you own your own pension we have members across the United States time in Canada and everybody does their classes online it's go to Total wealth academy.com and the first step would be to take the free sample class there's a big yellow button at total wealth academy.com that says free sample class<br> that's great so hey go to that website like that yellow button folks and he nice thing about it's free so you can figure out if it's going to if it's for you or not but see you don't want to thank you for joining us today I'd like to especially now that there are so that one place it can create some instability and stability of income which makes a big difference in everyone's life so thank you so much thank you take care alright bye bye more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevents you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show we're going to be talking about the ins-and-outs of money was Financial issues that could be cost me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending left your investment risk management retirement and everything is so she ate it with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve sex another saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us<br> will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton and welcome back to the savings Steve show I want to truly thank you for tuning in appreciate you and your friends and family Associates know about the Shelf your answers and Steve Davies told me you can always go to that website they have a free class that you can check out to see if it's a bit for you with that I want to go ahead and start talking about the impact of inflation<br> do inflation in 2021 with 7% in 2022 and 6.5% in 2023 and 5% regardless of whether or not inflation service coming out it doesn't mean prices are going to come down when inflation finally comes down a new price already been established prices will continue to rise from that price point just at a slower rate<br> what that means is the cost of living has gone up almost 20% in the last two-and-a-half years<br> this is why preservation of capital so important to keep in mind<br> every 12 years or so you're going to need 50% more income just to stay the same that means maintain your current purchasing power to when your experience is rapidly increasing cost of living along with the unique Atomic storm resulting in Market losses which makes sense to look at ways to reduce your risk with your Investments that have downside protection reasonable rates return enough liquidity so you can pivot when the market start moving back forward and so you can weather the storm to keep up with inflation the last thing you want to do is be totally focused on growth in your portfolio and cannibalize your principal when you're looking at inflation going up 20% Market rates going down and you still have to take out that withdrawal the saying your lights out<br> okay so the big question here is this is your complaint return comprised of the growth stocks at your liquidating for itching is it comprised of interest and dividends as well as those growth rain in pieces just want to leave that for you to ponder with again I want to thank you for joining us here on saving whiskey and we're going to look forward to seeing you next week have a great week stay safe stay healthy see you then bye bye thank you for joining us for the saving with Steve show hosted by Steve Sexton to learn more about the show and how to become a guest or sponsor visit saving with Steve. Us that's saving with Steve. Us join us again next time as we continue to talk about everything under the sun that relates to you having a healthier happier relationship with money this has been the saving with Steve show hosted by Steve Sexton<br>