Today we are going to explore how to make sure not to go broke and how to invest your money wisely.
Today I just wanted to talk to you about how to handle your money and investing. OK.
So the reason why I'm saying this is because I've seen some people actually make a lot of money and they're broke. You know I don't understand how. So recently I've seen a bunch of videos about athletes. They go broke very quickly.
So for example in the NBA there is a stat that says that two and a half years after they retire, 70 percent of them are broke. And these people are making millions and it's even worse for NFL players. You know the American football they go broke, quicker than anything because at least in the NBA the contracts are guaranteed.
So regardless, if you're injured and all that stuff you still get your money. Whereas with the NFL a lot of the time it’s not guaranteed. These guys think that the careers are going to last like 20 years or something and then next thing you know, three years four years then they're done.
So we're not at this level right. So we're not making like you know 30 million dollars a year or something. But still you have to think about the future. Here's what I see. I mean how I will do it right and that's what I try to do. When you get money what do you do with it?
I have a business. So that means that business runs without me. OK. So that's the distinction I make. So when I get money from my business, what I will do is allocate a certain percentage of that money to be reinvested in the business. Because you do want your business to grow.
You want the business to stay stable and stuff and you do also want to plan for the future just in case. You know everything could be working today and then something happens and then you screwed. I've seen that so many times. With other people and with me as well. You know. I mean stuff will send you curve balls and stuff you know.
So what I do is I always reinvest in the business to make the business grow a little bit and come up with alternative ways of generating an income. OK so you know that money goes into trainings and new tools for example and traffic and stuff like that.
If I need to buy traffic but I will reinvest that money. So I will allocate a certain percentage of money that will go back in the business. OK. It's not like I take everything and then I go and spend it.
I really encourage you to do this.
Make Sure Not To Go Broke
Then secondly, and make sure you prepare for this. You save whatever you need to save for taxes. OK. The last thing you want is to have the tax administration looking for you. OK. So once you've done that, then whatever is left of the profit is for you. You've worked hard and you want to enjoy a little bit. Right. So obviously this money is not going to go 100 percent in to like saving like squirrels or whatever. Right.
But what I recommend is you get a chunk of this and whatever happens, you put it aside and you will just invest it somewhere, like real estate, for example. This money is going to grow afterwards and you'll be very happy once you're old that you did this. OK. So this is what I will do right.
I'll take 50 percent of the money and then I will just go and reinvest it and then afterwards I will take 20 percent and then save that money. All right. So you save it just in case something interesting comes along. So you have you know cash. Then you have awesome real estate, some stocks and bonds and stuff, so you have a diversified portfolio. Right. So that you know if one goes down the other one will go up.
And the 25 percent that’s left you can use to get that lifestyle that you decided you wanted, today. Right. So you want to have fun and stuff that now you want it now. So this allows you to do the investments and allow you to continue doing that until you die. Have fun today. But try not to forget about the future. What you want is to build some assets that you can leverage afterwards, once you're older you know. Then everything is easier.