Debt-Free Millionaire

Where should you invest your money and how do you vet the losers - (W8:D1) Debt Free Millionaire

Simplified Explanation: Like buying a personal home, you will find opportunities to buy houses at a low price
Real Life: Investments are a must learn for most people but the truth is most Americans should diversify their money into many different funds (such as mutual funds) and sit on it for 10+ years. Most advisors will tell you they can get you a better return, but you have mutual funds available to the public that, over 10 years, will give you a 20% ROI (Return on Investment) every year so moving it around is just adding more risk instead of keeping it in one location. On Week 3, Day 4 (W3: D4) we listed out the most common investments you could invest in but now we will get a little more into investing of individual stocks.
Disclaimer: This is not financial advice on how to invest but information about investing as an educational study. Here are things you may want to know before you start buying stocks:
What are investments – Investments are buying ownership in a company or mutual fund. By you buying any investment you are paying for a portion of that company or fund and asking for a return on that investment. Investing in individual stocks is just one way to invest your money. Here are a few ways before we get into more details about each:
Individual stocks - An individual stock represents ownership in a single company, entitling the shareholder to a proportional share of the company's assets and earnings. When an investor purchases shares of an individual stock, they are essentially buying a small piece of that company. The value of the stock can fluctuate based on various factors, including the company's performance, market conditions, and investor sentiment. Individual stocks can be bought and sold on stock exchanges, such as the New York Stock Exchange (NYSE) or the NASDAQ, providing investors with the opportunity to potentially profit from the success of specific companies. However, investing in individual stocks also carries risks, as the value of a stock can decline, leading to potential losses for investors.
Mutual Funds - A mutual fund is a type of investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Managed by professional portfolio managers, mutual funds offer investors the opportunity to access a diversified portfolio of assets without needing to purchase individual securities themselves. Investors buy shares in the mutual fund, and the fund's value is determined by the performance of the underlying assets it holds. Mutual funds are designed to spread risk across a variety of investments, reducing the impact of any single security's performance on the overall fund. They are commonly used by investors seeking diversification and professional management of their investment portfolios.
Bonds - Investment bonds, also known as bonds or fixed-income securities, are debt instruments issued by governments, municipalities, corporations, or other entities to raise capital. Investors purchase bonds, effectively lending money to the issuer in exchange for periodic interest payments, known as coupon payments, and the eventual repayment of the bond's face value, known as the principal or par value, at maturity. Bonds typically have a fixed interest rate and specified maturity date, offering a predictable stream of income and considered relatively safe investments compared to stocks. However, bond prices can fluctuate based on changes in interest rates, credit ratings, and market conditions. Investors may choose to invest in bonds for income, capital preservation, diversification, or as part of a balanced investment portfolio, with bonds commonly traded on bond markets through brokers or financial institutions.
Private Companies - Ownership in a private company refers to having a stake in a company that is not publicly traded. Unlike publicly traded companies, private company ownership is typically limited to a smaller group of investors, founders, or venture capitalists. It grants individuals or entities rights such as voting privileges and a share of profits, but is less liquid and not easily traded on an open market.
Living vs Retirement investing - Some of these options are for monthly living expenses (individual stocks) and some grow over time (mutual funds, bonds, and private companies). Consider how soon you want to use your money and buy accordingly. The sooner you want a return, the more risk you will be taking.
Stockbrokers yesterday, today, and tomorrow
In the past people have invested with a stockbroker, recently its been through a stock broker website, now it is being done completely on an app on your phone. The same has changed for fees as well. In the past you paid a broker a good amount of your return for them to invest it, prices dropped as the visual broker went away and online trading became popular, and now there is almost a price war among brokers trying to win you as a client. They have dropped fees to nearly $0 per trade with apps like Robinhood.
Broker Strengths and weaknesses - Different brokers have different strengths and weaknesses and fees they charge, look up reviews online and sit down to meet with them before setting up an account. Weigh the pros and the cons.
Diversification in your investments - Never invest all your money in one stock or company ever. There is too much risk that something could happen, and it be worth $0. Diversify your portfolio means spread your money out. Investors know this that 10 may fail but if one hits it big, it will eat up all the other loses and you will still make a lot of money if you choose correctly. Most of the time, a diverse selection of stocks and companies won’t all fail at the same time, minus a recession usually makes all prices fall, which is why you need to consider your risk tolerance and ability to get back up and not see yourself as a victim. If you are resilient in life, you are more likely to have a higher risk tolerance.
Mutual Fund Diversity - A mutual fund is diversifying because it is usually built as a fund of many individual stocks, bonds, and commodities and if a certain value goes down, others may go up which means less of a loss during a recession.
Balanced Portfolio - Diversifying in competing stocks helps balance your portfolio. You should think of having a mixture of recession-friendly sector investments such as staples, utilities, and health care. They don’t have the best returns during boom times in the market, but they also don’t go down because they are essential. Essentials normally stay steady during recessions because they are always needed. Retailers such as Amazon and Wal-Mart stay stead or go up during recessions when people have to shop for cheaper options. Look for stocks that give a reliable dividend, real estate is a good investment after the price settles down low. Precious metals increase during times of recession and slowly decrease as times get easier and people adjust their holdings to go after more lucrative investments. Invest in yourself during a recession; take your money and put it into your education during a recession. Education during a time of high unemployment will get you through any rough economy and make you ready to be hired when the recession ends and businesses are looking for new blood (employees).
Dividends - Most stocks pay you dividends, excess money, each year, without you having to sell your stock. Most people invest this money back into the company with more stock or keep it for your living expenses. Though if the economy turns, there will be no dividend that year and this is why you should have other income through a full-time job just to make sure you can feed you and your family. Look also at how a company/stock pays dividends, finding those who show a strong history. Also know that they can hold back on paying dividends in time of recession to give the company more funding. 
Recessions Happen - Considering recessions happen every ten years, investment values drop for two to three years afterwards slowly creep back up to before recession levels and higher, then when you get older you are advised to rebalance your portfolio to be less risky, consider this new approach. Most financial planners want you to change your portfolio to be as risk averse as possible in your later years. Instead, try planning out your next 10-12 years between each market adjustments, starting in the middle of each recovery, how much money will you need? Rebalance that amount of your investments into low risk investments while keeping the rest in high risk mutual funds with a history of high returns over 10 years. If you do this, the next 10 years of money you need will not fluctuate too much while the rest will be able to climb to new heights and though it may drop during the next recession, history has shown that it always comes back after the recession and when it comes back it shoots well past its last peak value. This way your investments continue to climb as you grow older and the hope is that you never go without the funds you need to survive.
Lookup Their History - All established investments have a history, look at the history of the stock or mutual fund. Make sure that they show a steady incline over the years. Mutual funds will likely give you a 1, 5, and 10 year history of their average ROI interest rate they have returned. Those that are the most steady increase dramatically over the years and even if a few stocks drop in their investment, the rest of the investments will potentially increase keeping the fund portfolio solid and growing.
News Affects Values - Consider the news when considering individual stocks. When you buy stock, make sure you are informed about their latest news. If they are hiring, this is a good sign for expansion and increased values, if they are being sued, this will return with a lower value for their stock. If a pandemic happens travel stocks will fall yet retailers who allow for shopping online will likely grow. Learn before you buy what to look for in the news so you can be the first to buy when something good happens and first to sell when something negative happens.
Strengths and Weaknesses in Stocks and Investments - Each company and mutual fund have their strengths and weaknesses. For companies they have their strengths in potential for growth while mutual funds have potential in the individual investments in that fund. This is all public knowledge so look at what they are investing in and see if you think those are good investments. Remember though, that they have a 10-20 year history that you can check and they are good at what they do. 
 
Debt-to-Equity Ratio: One weakness could be their debt-to-equity ratio or those companies that are still in a great deal of debt compared to their equity in their own company. To find this number, divide the total liabilities on the company balance sheet by the total amount of shareholder equity. For those with a lower risk tolerance, that number should be 0.3 or less.
Price-earnings ratio (P/E Ratio) shows how well a stock’s value is doing compared to their earnings. This will tell you if they are undervalued or overvalued. To find this ratio, divide the company's share price by its earnings per share. If a company is trading at $40 per share and the earnings per share are $2.50, the P/E ratio is 16. Use this to investigate similar companies. The lower you the ratio means the more the earnings are increasing. Know that a stock with a 16 ratio can be good when you compare it with other companies. It all depends on how the economy is doing at that time.

What is happening in the Real Estate Market and will it recover? - (W7:D5) Debt Free Millionaire

Simplified Explanation: Like buying a personal home, you will find opportunities to buy houses at a low price and this will provide a way for you to buy, fix and either sell or rent it to someone needing housing. If you find a house low enough and can sell it for a large profit, it frees money to buy another, larger house at equal value to the price you sold the first house and each time you can make a bigger profit from the sale.
Real Life: To buy the house you can take out additional debt or you can pay it off in cash. Know that if you pay it off in cash and you bought it for a low enough amount, you will almost always make more money not having to pay a mortgage and so interest on the mortgage. Also know that you will not have to pay the extra fees that come along with a mortgage or the down payment. To buy it with a mortgage you will need to take out the down payment from your savings, adding the mortgage to your monthly expenses (personal, if you are living in it or business if you are renting it out). The price of the house does not add to your other debt payments, in other words, it is the last debt you pay normally because it has the lowest interest rate, and it is the most acceptable type of debt. Continue to pay the mortgage until you can 1) have excess earnings that you can put towards paying down your debt, 2) pay off the house completely, or 3) sell the house. 
NOTE: You almost always lose money on the house itself, when you have a mortgage and purchased a house at market value; that is, unless the housing market explodes like it did in 2019-2021. 
Like in real life, in the game there are four options you can take when drawing a Real Estate card. Each has its advantages and disadvantage.
Personal – First off, you need the money for the down payment available in your savings to buy the house. If you are buying the house to live in, decrease your savings by the lost expense of repairs because you are going to make it a little better looking than if you were to rent it out. Then decrease your existing living expenses by $12,000 ($1,000 a month rent) and increase it by your mortgage payment. Now live your life as if you live in this house. You are also able to sell it and move into another house if you would like.
Business – If you are buying this house to fix up, and sell or rent, you will need to pay for all the repairs. Repair costs are on the card, under Business #1: You must have cash for these repairs, you cannot take a loan out. In the game, it doesn’t matter if you are renting the house or selling it, you have to wait until another card is drawn that says that someone is looking for a house like yours at a certain price. At that point you can sell it if you want. Until you sell it though, you may want to rent it out and make some money off the deal. Add the rent to your business income.
Sell One – Whether it is being rented out as a business or you are using it for your personal residence, you can sell one of your houses when someone is looking for a house your size. If you are selling a business owned house increase your business revenue by the amount of the sale (price you sold the house, minus the down payment, minus the price you originally bought the house). If it is your personal residence, add the sale of the home to the amount raised by selling it (price you sold the house, minus the down payment, minus the price you originally bought the house). This is the amount you made by selling the house. Then, if you don’t have another house to move into, increase your monthly expenses by $1,000 for a rental, and decrease the money you were paying for the mortgage, if you had one. The game will do this automatically for you but explain it to you also.
Wholesale the house – If you receive a card (know of a buyer and you don’t have a money to buy/sell it), you can always refer them to an opponent and make some extra money off the sale of a house they are looking for. In other words, you become the middleman. If you find a house that is perfect, but you don’t have the money, you may sell that to an opponent as well for the price listed on the wholesale section of the card. Down below, we will share how to do this.
There are many options while playing the game on how to profit from a real estate card that you or your opponent pulls, much like in life, you may find an opportunity yourself or through a friend and there are ways of making money off that information. So, keep you ears open.

How do you make Millions from Real Estate? - (W7:D4) Debt Free Millionaire Podcast

Simplified Explanation: Real Estate is the buying and selling of real property, or buildings and land that have a monetary value to another party. If you can find deals and buy a piece of property, like a house, and you can fix it up or hold on to it long enough, the value almost always increases.
Real Life: Real Estate is a very large subject. So large that we have multiple books being written on the subject: Debt Free Flipper and more. Any of these will give you the experience of one of these avenues of real estate. For this game and book, we are focusing on residential because that is the most used form of real estate investing you will find by the average consumer. Be aware that there are many more avenues you may go.
To start off, allow me to introduce a little of each of these avenues, from least expensive to the very expensive real estate ventures you can go into, then teach you how they works.
Wholesale – This is to acquire land, by contract, from one party and sell it to another party, where you never need to pay your own money, so you don’t need any money in order to begin selling real estate. The process is simple, you find a buyer and what they are looking for, potentially you should be looking for a dozen or more buyers, you then find a property they listed as something they would buy and contract with the owner to sell their property to an agreed upon amount. Then, contact your buyer and, after increasing the price by $5,000 - $10,000, you secure the buyer. You then write a contract to buy the property from the original owner and you assign it to the buyer that you found. In the end, they bought a deal of a house, while you made $10,000 on the side. Everyone wins. Be careful because these contracts are binding and if your buyer doesn’t buy the house, you ended up buying it from the original owner. Again, the benefit is that you can get into real estate without any money to do so. 
Land – This is the least expensive property you can buy because there are no buildings built on it and so raw land can be used for so many different purposes. The buyer will be expected to develop the land themselves. These deals normally take longer to find a buyer because people are normally not looking to build on a property but instead buy something they can move right into.
Rental Cycling (Renting out other’s homes) – Did you know that you don’t need to own a home or apartment in order to make money. You just need to rent out a property that you can sublease to others. Whether you want to stay there or not, you can sub lease a bedroom from the apartment or house and they will help you pay the rent. This takes a smaller amount of money, but includes first and last month rent, and a security deposit, and you can sometimes make money from those you allow to stay in your home. Now, make sure that it is okay with the landlord, and that it is spelled out in the contract that this is allowed, or you may be evicted for breach of contract, and then have to start over again. 
Flipping Houses – To flip a house is to buy a distressed or non-aesthetic house or building and fix it up to be more valuable after your work is complete. You add value to it by fixing it up and then selling the property for a higher price than you bought it. Be warned that you should know what you are doing fixing the property or ask a professional to help you, especially with water, electrical, or heating and air conditioning.
House Hacking – This is a process where you buy a house as a business and fix it up, much like flipping or renting but instead of owning your own home or living in a rental, you live in the house that you are repairing, saving money on your living expense and working on the property at all hours of the day. Normally, you would fix up the areas you would need the most, such as the bedroom, bathroom and kitchen, and then work on the rest of the house while you enjoy the early benefits of your labor. 
Real Estate Investing (Rentals) - When you buy a house, you can live in it, sell it, or rent it out to someone to use for their purposes. You allow them to use your property for a price, which pays your debt on the building and a little profit to increase savings. This type of real estate is what has made the most millionaires in the United States than any other type of work or investments.
Commercial Real Estate – You can buy a home, or you can buy a larger property that will be used for some type of business. You can use it, sell it, or lease it out to someone else who would pay you to use it for their business purposes. These are the most profitable at times but normally take a lot of work, including trying to find the right people to lease it from you. If you find a very desirable property, you will need less help to manage or market your property. If you are buying it with cash, this is a great option to keep stress low.
Now, if you choose to go into any of these types of real estate sales, you should know there are two ways to sell houses, one way I agree with, and one way that could start you off on a very hard path to live when the market turns. I tell you these things that you may have the wisdom to find the right path for you.
Buying and selling with credit – There are many gurus that will tell you to start up an LLC and buy a house that needs a lot of work, on credit, fix it up, then go back to your bank and refinance it 100% off the new value after being repaired. Take all the equity (money it is worth) out of the house and buy your next house. Fix that house up and 100% refinance that house on it’s new value and buy another house. Then, pay yourself a large amount, living the life of luxury, as the money starts coming in from rent and pay minimums on the house. Over time the houses values will increase, and the houses will be slowly paid off. Sounds great, right? But, what they don’t tell you is what I told you earlier on. Remember that there is a recession every 8-10 years, or a pandemic, and people can’t pay their rent. If someone can’t pay you their rent, then you can’t pay your bills. During the 2020 pandemic, the U.S. Government tried to help people by saying to Landlord, you can’t evict someone during the pandemic, even if they aren’t paying their rent. What does this do to landlords? The landlords couldn’t pay their mortgages and many of them lost their houses. Same thing happens during an economic recession, if people can’t pay, you have to find other tenants or now, the government has realized they have the power to make you rent to people that aren’t paying the bills and will most likely never be able to catch up, so you are left with a house that is 100% mortgaged, with no equity, and then you can lose your house. But again, you went into real estate investing knowing that the mortgage had to be paid, even if you didn’t have the money. 
So, what do you do? You foreclose on that house, and they go after you for the difference of the house and loan they gave you, which means you need to sell the next property to afford the first and that house has no equity, and so on and so forth they all are sold off until you have little to no houses left and your company has to go bankrupt. Now, because you created an LLC, your personal finances may be safe, right? Well, there are ways of going after your personal money, but more than that, you just promised all these businesses (banks and other lenders) that you would pay them all back, and yet you just sold all your houses and lost off your business savings and you can’t pay them all back. Thinking you personally didn’t lose anything; you actually lost your name. I am not talking about your credit score, that is the least of what is important. You promised you would pay back your debts and you went back on your word because your business couldn’t sell the houses. Your word is now worth nothing. You basically gave up your honor for a sack of cash that you took in your personal life and didn’t pay back your debts. Now there is an alternative where you never have to worry about losing your money or houses and I’ll teach that next.
Debt Free Real Estate - Anyone can get into investing in real estate, and it takes no money to begin. I will teach you a brief overview of how to start your real estate empire with no money at all and walk away with a million dollars of equity, but it will take a good amount of your time and may sending you investing in a way you never would have thought. Start with nothing in your bank account and start at any age. The only limitation is that below 18 years of age you will need help from an adult to co-sign your contracts. 

Animals are Expensive to Own When you are Starting Your Independence - (W7:D3) Debt Free Millionaire

Simplified Explanation: Animals are not always the easiest thing to handle. Sometimes, they are messy, need a lot of attention, and cost a lot of money to care for. They also, bring a lot of love, interest, and are great companions to have around. So, as with being intentional in life, if you are considering having of having a pet, there are some things to consider and some things to understand. Also consider that no pet is easy to take care of if you aren’t taking care of yourself first. Never should a pet put an unbearable burden on you because if you aren’t taking care of yourself, you are definitely not taking care of the animal as you should be.
Real Life: Does it seem strange that I am mentioning animals or pets in a financial book or game? The reason is because animals cost money, some more than others. If you are open to having pets than there are some expenses to think about. Each animal is different, some with more positive things than others. So, consider these things when considering getting an animal. Not just for the money you will spend, but time and emotion as well:
Dogs are more than an animal, they are a bodyguard, comforter, and a companion to some.
Food – Like humans, dogs need to eat. Normally, you will feed them a good size meal in the morning, small lunch, and large dinner. You do not want to put all the food out at one time, because they will eat it all immediately. You must space it over time. An automatic feeder is great for a dog. Either way, dogs eat a lot of food, and you may need to have extra.
Accessories – You need toys, beds, doggy treats, and more. This does not need to be expensive.
Medical Needs – Dogs need to be spayed or neutered when they are young to keep from having unplanned puppies to feed and distribute. They also need check-ups at least once a year. 
Shelter – Daily shelter is easy; all you need is a kennel. If you go on a trip, you need to ask someone to walk and feed your dog or pay an establishment to “board” them while you are away.
Walks – Dogs, like humans, must use the bathroom, yet theirs is normally outdoors. They have a certain amount of time before they will make a mess on your floor, if you leave them inside. If you work, think of making a walk outside or pay someone.
Grooming – You don’t need to pay someone, but you do need to spend the time washing and brushing them, and cutting their nails. This can be time consuming or expensive over time.
Time: If time is money, then you will be spending a good amount of it with your dog. They become part of the family and should be treated as such. They are not a trophy or even a guard dog is not just a bodyguard. Dogs are the more expensive pet.
Cats are more than an animal, they are a comforter, companion, and kill off rodents, in and around the home.
Food – Like humans, cats need to eat. Normally you will put all their food out at once and they will eat it gradually. An indoor cat eats a lot of food, outdoor cats eat about a quarter, while an indoor/outdoor cat eats about half the amount.
Accessories – You don’t need toys, beds, treats, or other things though these are nice to have.
Medical Needs – Cats need to be spayed or neutered when they are young to keep from having unplanned puppies to feed and distribute. They also need check-ups at least once a year. 
Shelter – Cats again take care of themselves so if you leave them, just make sure they have enough food and watch while you are away. 
Walking – Cats don’t normally go on walks with you, except mine, she is a little strange and will take a walk every morning and evening while I walk my dog. People stare at us. Man, dog, and cat, all walking down the street together. It’s quite the site, but not normal.
Grooming – You don’t need to pay someone, but you do need to spend the time washing and brushing and cutting their nails if they are indoors at all, otherwise they will take care of it.
Time: If time is money, then you will be spending a small amount of it with your cat. They normally stick to themselves until they want attention. They are part of the family and should be treated as such. When time is money, and expenses is money, cats are less expensive than dogs, but still expensive.
Chickens – Chickens are great for eggs, especially if you like cage-free eggs. They are also good at getting rid of bugs around your house, which always means less bugs inside your house.
Food – Like humans, chickens need to eat. Normally you will put all their food out at once and they will eat it gradually. If you let them out into the yard, they will eat all your pests and grubs. Food can be expensive but that is when you subsidize it with kitchen scraps. 
Accessories – You will only need a feeder, water container, light for winters, and shelter. They take care of their own entertainment and everything else.
Medical Needs – In a normal lifespan, you will not need a check-up for the chicken.
Shelter – Chickens need a chicken coup when you first buy them so expenses are very low.
Walking – You don’t walk a chicken but you could spend time with them.
Grooming – You don’t groom a chicken, they take care of that.
Time: You don’t spend time with them except feeding, collecting eggs, and cleaning their coup. If time is money and expenses is money, then chickens take care of themselves and you only need to pay for food and give them enough time to take care of them.
Reptiles/Fish – These are more for something to look at instead of spending time with or holding. They don’t like being held, but if you need it, reptiles are great to spend time. Here are the normal responsibilities of having one.
Food – Like humans, they need to eat. Normally you will give them enough in the morning and or every other day. Fish and reptiles don’t eat much so they are not too expensive. 
Accessories – You need a fish tank or terrarium, bubbler (fish), accessories inside the tank and chemicals to clean the water (fish), beyond that, these are more like upfront costs.
Medical Needs – Fish and reptiles, unless very expensive, don’t normally get medical attention.
Shelter – Your tank is enough, though they do need lighting to stay healthy.
Walking – You do not walk them. They do not even want time with you. They are to observe.
Grooming – You do not groom a fish or reptile, though you should clean their tanks routinely.
Time: No quality time needed, except feeding, cleaning, or holding them occasionally.
There are many more types of animals you can have as pets: horses, bees, rabbits, hamsters, spiders, frogs, etc, and they all take time and money to take care of them. Don’t go into this blindly but investigate how much each will cost and make sure you can provide for them.
When every expense is important, think about limiting the number of animals you have until the time when you are financially secure and have the time to take care of them. Again, all of them become part of the family and should be treated as such.

Are you a Victor or Victim? Failure or Successful? You are in control -(W7:D2) Debt Free Millionaire

Simplified Explanation: Things happen in life that we have no control over, but we do control how we will respond. The story of my heart is a fact, I have dealt with death every day of my life and now, I don’t worry about death. I won’t leave this life any faster than I am permitted. These events are to give us strength and understanding and without these opportunities, whether good or bad, we would not be who we will become in the future. So, if they are going to happen in the future, be accepting of them. Now, you do have choices, when you make good choices, you are more likely to succeed and turn these events into opportunities. If you choose to do things that are against the law, unethical, or things you know you shouldn’t do, then you will have to accept the consequences that come. Don’t blame others for things you do, but instead, learn from them and don’t make the same mistakes twice. If you see someone else making that mistake, then learn from their example and pain and resolve not to make the same mistake.
Real Life is hard sometimes, maybe even most of the time. You never know what is going to happen. A president may be elected, gas prices will double, and you may lose your job. You may be minding your own business and a car may come flying into your living room and the owner of the car is uninsured. You may win a sweepstakes you were just goofing off when you entered. Things happen and you need to roll with the negative events and celebrate the successes in life.
Most of the time, when you are intentional with life, good things happen. There are two types of mentalities you can change a life for the better or the worse: the victim mentality or the success mentality:
The Victim Mentality – This mindset develops when a person sees themselves a victim in everything bad that happens to them. Everything bad happens in your life because you are a victim. This type of mentality will hold a person down and strangle them without a struggle, because the person is not ready or able to fight back. Negative things come and those individuals will give up, blame others, and fall back on the idea that they can’t do things for themselves. And to many, there is nothing they can do to get out of these scenarios. There is so much more to this than I can write in this section (read more on our site). 
The Success Mentality – This person takes personal responsibility for things that happen in their lives. Not to say things don’t happen to them that they didn’t cause, but instead, they don’t see themselves as a victim when things get hard. Instead, they work on the assumption that “things happen, but I will overcome”. This is the person that sees the glass half full (as opposed to it is half empty). We find opportunities and failures as educational moments where we get right back up and begin by fighting back. The truth is, you can do almost anything in life, but you must do it intentionally and know that you are not a victim, but a mental giant, ready to take on any obstacle that comes your way. Easier said than done, right? Read more about this on our site.
This is not to say they don’t have rocky moments when they faulter, breakdown and even cry because of the pain or struggle, but instead that they allow for a time of even self-pity and then collect themselves, get back up, and try again. A success mentality is what every successful athlete has, they didn’t become successful overnight, they had to fail 1,000 times before getting something right, and yet, they didn’t let those failures end them trying again. They endured to the end because they knew they could do it.
Another example, in this instance, when it comes to being intentional is, if I want to make sure that I never get into a car accident while under the influence, I will not drink alcohol or do drugs. I will intentionally hold back from hanging out with friends that will get me drunk. On the other hand, if I were to drink, I would make sure that I was at my house or took an Uber to and from the restaurant. In that instance, my choices never will get the best of me. If I am to drink and get into a car to drive home, I must expect that I will get into an accident, maybe even kill someone on the street as I drive impaired. Make the choice now if you are going to live intentionally. And as the commercials all say, “buzz driving (single drink) is drunk driving”.
Financially – We cannot plan for everything that will happen in our lives. The best thing we can do is plan for those things that may happen and hope for the best, being intentional in everything we do will save us millions of dollars in our lifetime and could even save ours or someone else’s life. To be financially intentional we must plan for negative things by saving a certain amount of money for non-specific issues that may happen. We call this our emergency fund.
Emergency funds are essential to live an intentional life and not become a victim. You or a family member may need surgery, or your car may break beyond repair. How do you plan for that? You or a family member may get into an accident? How do you plan for that? What about if you lose your job? You can’t always plan on when things happen in your life, but that bad things will happen. An Emergency Fund is a savings account built to withstand normal disasters that happen within your family. But how much do you save depends on where you are financially.
Priority one, after saving a small Emergency Fund of about $1,000, is getting out of debt, then saving for the future. Here are two out of an infinite number of options:
Build an emergency fund of $1,000 and then spend every other dime getting yourself out of debt. Once you are out of debt, minus your house, you then save 6 months-worth of expenses as an Emergency Fund. If you spend $4,000 a month, then you should save $24,000 in savings. This is especially needed if you lose your job. Put this emergency fund in the bank and allow it to sit there, even if it has a small interest rate. Investing with that money locks it down for a set amount of time. You need these funds to be liquid, that you can spend within hours if needed. You want it to be liquid, which means you can draw it out any time. This allows you not to become a victim. At the same time, you should always have insurance as well. One of my surgeries cost over a million dollars. One of my surgery bill came out to $485,685.89 and my insurance took care of the entire amount. I took that bill and still have it framed on my wall. Insurance doesn’t cover everything, and I had another $20,000 to pay for other parts of the operation and with a payment plan, I was able to pay that down over a matter of 18 months without going bankrupt or struggles. I couldn’t even work during that time, but being intentional saved me.
Someone in my situation, where I have a lot going against me, because of my health, has a higher chance of something happening, so having an Emergency Fund that is large enough to take care of me is essential. I may spend half of my income to pay off bills and debts while saving the other half in this fund. At the same time, mathematically I would grow that larger Emergency Fund faster if I spent my excess on my debts and paid them off quicker, so that I had money to save after my debt was paid off. Think of it this way. If I spend half my excess income towards debt and saved the rest, I will pay back the debt at a slower rate, more money will go towards interest payments and it will take me more time. See the diagram below:
Emergency Fund Scenarios (Paying Back $20,000)
(Excess $2,000)
Savings
Paid to Debt (Interest: 9.8%)
Time to Pay Off
EF after 18 mo.
Option #1
$1,000
$1,000 towards debt
$1,319 (18 mo. interest)
$14,512, no debt
Option #2
$100
$1,900 towards debt
$872 (12 mo. interest)
$15,128, no debt
 
There is little difference on this small amount of debt, but as the amount of debt increases, the more difference it will make, plus you have 6 months of less stress because your debt was paid off sooner.

Where is your Paycheck Going? Who Controls Your Money? - (W7:D1) Debt-Free Millionaire Podcast

Simplified Explanation: Every two weeks or twice a month, you will receive a check or money will be deposited into your bank account based on an agreed upon amount you contracted with your employer before you started working for them. If you negotiate with them, you will be receiving an acceptable amount that both sides can work with.
Real Life: Payday is not a day to collect your money and spend it in one day. Instead, it is a day to begin spending as your budget demands. You want to be purposeful in the way you spend money, or it will disappear as quickly as it appeared, and you will have nothing left until the next paycheck 2+ weeks later. 
Since you have your budget already written up, you will now need to take the money you acquired through work and pay yourself first. Put money in your savings account. The trend is, when someone sees money in their normal account, they will find ways to spend it. Distributing your money into specific accounts allows you to only see money in your general account, which you can spend. So, pay yourself, donations, mortgage/rent, and all essentials first. Then either distribute the rest into specific accounts or work cautiously to spend what you have appropriately.

Low Risk to High Risk Investments with Low to High ROI - (W6:D5) Debt Free Millionaire Podcast

Simplified Explanation: When you have paid off your debt, built up your emergency fund, and have excess money collecting in your savings, money that you don’t need for a while or until retirement, then you can invest that and grow it. When you are debt free and these investments - including a paid off house – add up to $1,000,000, only then are you truly a millionaire. Those that have $1,000,000+ of assets and then have even thousands in debt, are not truly millionaires.
Real Life: There are many ways to invest. We have discussed them in an early chapter but let’s quickly go over them again. Look each of these up at debt-freemillionaire.com/search/ (7)
You are looking for high Return on Investment (ROI) and low risk. Normally, you can’t have both, so you take one or the other or find a smaller balance. Normally, while you are younger, you are okay taking higher risk and reaping higher rewards and failures, but as you get older, you want to be more secure with your retirement. 
Single Stocks – Also known as shares or equity. These are partial ownership in individual companies that are traded to the public on platforms such as the New York Stock Exchange or the Dow Jones. These are some of the highest risked investments. These include stock like Ford, Apple, Facebook. These investments have slow increases, but are normally reliable, depending on the investment you choose. Medium risk, medium ROI.
Common Trend – Buy these stocks low and sell high, or hold on to them for longer as they continue to grow. Stock do have a higher risk and may close without any return or losing your investment, if the company goes under.
Privately Traded Business Ownership – Publicly traded stocks are those with a history of making money and are available to the public, while Private Stocks are higher risk to fail, because of the lack of history. Larger buy-ins are normal. If the company closes, then all investments are lost, but if the exceed, you could 20x your money. High risk, high ROI. 
Common Trend – If you have full faith in the company, being the first to invest is the most lucrative, but it also riskier. Be careful which companies you invest in.
Corporate Bonds – These funds are where you are lending money to an entity, usually for one of their projects, for a certain amount of time. They guarantee you a set return when the bond matures and closes. Low risk, low ROI.
Common Trend – These are contracted investments, they guarantee you a set return - normally small, but very secure – secured so it normally does not fail or close without paying you the set amount of money. A company that issues this bond can still default, leaving you with nothing, but, unless the company closes, you’ll be paid. These have a smaller ROI.
Municipal Bonds – When a city or county wants to build a school or anything, they vote to release a bond where different entities invest while they build. On a set date, the bond will mature, and you will be paid. Very low risk, low ROI.
Common Trend – These are highly secure bonds being run by local governments, but it is not out of the possibility that a local government will default, and you won’t get paid, just less likely.
Federal Government Bonds – For government bonds, you are lending the government money over a long period of time. Interest rates are based on the Federal Interest rates instead of what the market rate. Savings Bonds are the most common, which appreciate over many years. Very low risk, low ROI.
Common Trend –These are highly secured debt since it is unlikely that the federal government will default, but it may and then you will receive nothing since you are only paid when you cash them.
Mutual Funds are a pool of many investor’s money to buy a diversified portfolio of investments, including bonds and single stocks. These are stock traders and very well trained on picking those that will make the most ROI. Since it’s very diversified, it is highly unlikely that all the companies will default at the same time. A fund may invest in 100 companies, to spread the risk. Yet, if the market and economy decrease, then the fund will lose money, but not all of it. Medium risk, high ROI.
Common Trend - Mutual funds are highly secure and have some of the best returns you will find. Some years could be 25% ROI. These you will want to stay in for years, not months or days.
Exchange-Traded Funds – Similar to mutual funds, these are a collection of many investments, but these are sold on the stock market directly and their value fluctuates throughout the day, instead of at the end. 
Common Trend – These are recommended to new investors (day-traders) because they are so diversified and more secure than single stocks and if they drop, you can pull out quickly. 
Certificate of Deposit (CD) – A certificate of deposit is a very low risk investment. You give the bank a certain amount of money that they can use paying you a specific interest rate and return you a guaranteed amount of money based on what you invested. Low risk, low ROI.
Common Trend – The longer they can keep the money, the higher the interest rate. Currently, the federal interest rate is low, so they are offering a low rate, yet it’s insured by the government.
Retirement Plan – There are many types of these plans: 401k, 403(b), Roth IRA, Traditional IRS. These are accounts you set up and buy your investments through (usually mutual funds, bonds, and annuities) in order to save them until you retire, at which time you withdraw.
Common Trend – There are great tax benefits by using a retirement account to invest, being taxed now or when you retire and have less income. Taking money out before 65 is awfully expensive.
Options – Options are less direct investments. These are buying the option to buy a stock at a certain, lower or higher price. You can call options to buy assets if an investment increases, or discard if the investment drops. 
Common Trend – The risk comes if the stock price drops and you can buy it for the same amount, then the option is obsolete. These are investor tools and non-trained investors should be cautious. 
Annuities – These are basically insurance policies you buy and receive periodic payments in return. You may buy these by paying one time or periodically. They may also be link to the stock market. Low risk, low ROI.
Common Trend – These are low risk, and not high growth. They may supplement your retirement but will not get you a solid investment plan. Those who sell them get paid a lot to sell them.
Cryptocurrencies or NFTs – This is basically a digital currency, stored on a digital ledger or blockchain. It’s value is just as much as the collective market of investors places it, buying the asset at the value they place on it. So, you buy it at the cost of whatever minute you submit your buy. These are new investments, so their history is still being developed. They are much like a stock, yet have nothing behind their value. There is no company that increases the value, it is all based on how much the market thinks they are worth. They also don’t have the largest following right now so that go up and down very quickly. They could lose 10% in one day and return 10% in one day. The most popular are Bitcoin, Ethereum, and Litcoin, which are more secure because you have more investors insuring their value. NFT or a non-fungible token is a unique unit of data stored on a blockchain, a form of digital ledger for some digital information that can be sold and traded.
Common Trend - If you buy them when they are worth pennies, you could sell them when they are worth thousands. The risk is that they will not grow and since there is nothing behind them, they could easily default. If purchased after their initial growth, their returns are more like stock. Example: I bought Bitcoin, Ethereum, and Litecoin a year ago and in that one year has increased 400%, while an stock would only increase 20% per year. At the same time, that one year investment, in February 2022, dropped 20% in one month, so it is still very volatile. 
Precious Metals and Gems – These include gold, silver, rare metals used in technology, diamonds and rare gems and are purchased retail and sold retail. They are not as much of an investment, but insurance. Gold only has a value if you give it a value. The only reason diamonds are valuable is the sentiment we put on it for jewelry or a wedding ring. The rock itself is not that valuable. Yet, something like silver or platinum is used in computers.
Common Trend – Because they are a physical commodity, their value is not likely to be zero, just that no one would be interested. If they became less rare, their value would decrease. Low risk, low ROI.
Agriculture – Ever wanted to buy a large amount of wheat or corn? Here you don’t have to collect it, you simply buy an Option to buy them at a certain price and sell them for a higher price. Low risk, low ROI.
Common Trend – These are based on a market of how high demand is and how much is supplied at harvest time. If there is too much, the price drops. If the demand is high, the price increases.
Livestock and Meat – Ever wanted to buy livestock, probably don’t have room, right? This too is the option to buy at a certain price and if the demand goes up so does your return. If it was an actual cow and if the price didn’t go up, you could always eat it, but unless you have the room, an option to buy is more valuable. Low risk, medium ROI.
Common Trend – Because people need to eat, the price will never hit zero, but the price all depends on how many people want that commodity and how much supply there is. Less supply or higher demand increases the price. 
Energy – You will probably never buy crude oil or a gigawatt of energy or a cubic yard of natural gas, but like most commodities, you are not buying it retail but the option to buy it at a certain price and then hopefully selling the option higher. Low risk, medium ROI.
Common Trend – Supply and demand, as most people need it and it becomes rarer, the more you get paid. The increase is supply and the less people use it, the less it is worth.
Residential Real Estates – People will always need a place to live and in the U.S., people will always be able to buy a house and either fix it up and sell it, or rent it out to someone else and collect rent from them.
Common Trend – Houses appreciate quickly between recessions (8-10 years). Nearing recession, the price will peak and then the house value will drop dramatically to rebalance the inflated price. If you cannot sell through a recession, but instead rent it out, you shouldn’t lose money, possibly making money. It is more valuable if you can buy a house that is run down and fix it up, if you have the skills.
Commercial Real Estates –Businesses need places to sell their merchandise/food, a location to hold and manage their staff, or a place to manufacture their goods. You can sell or rent it to a company to utilize.
Common Trend – During COVID, companies began working remotely. Realizing they don’t need physical locations, demand for these properties has decreased and building are sitting vacant. 
Industrial Real Estates – Large warehouses and factories are more industrial than just commercial. Companies need large locations to build or assemble their goods before selling them, but as the property becomes older, the less likely you will find someone to buy or rent it and you won’t have the money to fix up the warehouse.
Common Trend – With the increase of manufacturing in China and other countries, these large buildings are sitting vacant and the property owners who rented them out can’t rent or sell them.
Land – Land is the most secure investment to own. Land can always be used for something, whether for hunting grounds, farming, storage, or building. People rent these properties out like a completed building.
Common Trend – Land is normally hard to sell unless it is in a prime area of growth, but if it is zoned agricultural then property tax is low and there is little/no upkeep.
Art – Another commodity that never truly loses its value completely. Paintings, drawings, sculptures are not store like other commodities, instead displayed for visitors to see and appreciate it for the time you own it. Low risk, medium ROI.
Common Trend - When buying art for an investment you take the risk that it will not sell in the future, because no one can afford it or want it. It sells like residential property in comparison to recessions.
Anything We Give Value – You won’t find many financial people remarking on this investment, because they want to make a commission off your investment, but if you and others give any object value, it can be considered an investment and may go up and down in value, including baseball cards, stamps, and coins.
Common Trend – Objects increase between recessions (8-10 years) and rebalance during a downturn. Most objects of value are held on to to increase their price, at least 8-10 years.
But how do you manage your investments? Normally you use professionals to manage stocks, bonds, mutual funds, retirement, and any option, for a fee. At the same time, you may buy most of these on your own, without the training. Recent technology and software have opened the doors to buying almost all of these on your own for a low price or free. Commodities or physical objects of value can and should be obtained with the help of trained professionals (property, cryptocurrency, commodities) but then managed by the owner.

How to Pay For a Sports Car with Cash - (W6:D4) Debt Free Millionaire Podcast

Simplified Explanation: What is Savings? Savings is, of course, how much money you have stored to be used in the future. It can be saved in your mattress, in a box, or in your pocket, but most commonly, larger sums of money are stored in a bank. Savings is not something you grab from for any small thing you want, but rather money you accumulate over time. When you really need it, the money is there; when you really want something, the money is there; and when you just want a place to store excess money, such as when you are no longer paying off your debt, it is there waiting on you. Those who use it effectively save around 4-6 month’s worth of their monthly expenses, and don’t touch those funds. They also have a checking account, where money goes in and out all the time, while the savings account is for storing money over time.
Real Life: The more you save in real life, the more you can put away towards a rainy day. You should always have a small emergency fund, in case something unexpected occurs (and it will). But after you’ve saved about $1,000, all extra money should go to paying off debt, until it is gone. Then, all that money you were spending on debt can go towards living your life, and saving to build a bigger cushion, in case something unexpected was to happen in your life.
Where would you like to save your money? When you budget, save towards a rainy day, or some event in the future. Banks will allow you to have a single account, or  dozens, each based on your priorities. 
Do you want a sports car? Create a sports car account, and start saving towards that sports car every month, with an account titled “Automobile Account.” If something happens to the car you are currently driving, pull from that account and pay off the car repairs; the rest stays in the account until you can buy that sports car. If your old car breaks down and you need another car, take from your car account, and put that towards the newer car; the rest stays in that account until you have enough money to afford that sports car.
Do you want to go on a vacation? Set up a vacation fund and save towards that every month. In your budget, you are giving every dollar an assignment. If you use that money, then it’s spent that month; if any is left over, add it to this account. This allows you to save for a trip in the future. If the trip is a year away, estimate how much it will cost, and then divide that over how many months you must save the money; that is how much you will need to save, monthly, if you really want to go.
What if you have extra money? If your bank account has more than enough money for the event or sports car, then you may want to adjust how much you are putting in that account. You will also want to readjust it when that event is complete. A car account can stay active after you have bought your fancy sports car, but you may want to adjust it and allocate that money to other funds. In the end, all these accounts are considered “Savings Accounts.” 
Savings vs. Spending – When you receive money from your paycheck, or are given money for any reason, the first thing most people want to do is to spend it. It is natural to want to spend when you have money given to you. The harder thing to do is to save it, but it is more enjoyable when you have money to spend in the future. Like one of the gurus I mentioned always say, “If you live like no one else now, later you can live and GIVE like no one else.” So even though you want to spend your money as soon as you receive it, if you want to have money in the future, the best thing to do is to save it. And when you are done with paying off your debt, you’ll have more to spend, and more to save.
Savings vs. Investing – When you have less debt, and more money seems to be collecting in your savings, it is very easy to want to spend more, or even save it in a bank account. But why allow the banks to make money off your money (by allowing others to borrow it)? Why not make more money with your excess money?! After you have accumulated 4-6 months’ worth of expenses in your savings (or however much makes you comfortable for if you lost your job or had an emergency), why not invest in something that may give you the true benefit of money - growth? Investing in mutual funds, an IRA, or a 401(k) is a great start. Most investments have a proven track record with their money, and should return you at least 10% interest every year over a 10-year span. We’ll talk more about this in the next chapter.