Increase Cash Flow and Become Rich! | BeatTheBush

The trick to being wealthy is really to just spend less than you earn. Whatever income bracket you are in, you can increase cash flow by maximizing income and minimizing expenses. In this video, I concentrate on the minimizing expenses aspect.

Okay what’s up everybody this is beat the bush and today we’re going to talk about cash flow what everybody wants is to increase their net worth but sometimes it’s really hard for someone if they spend all of their income every single month here’s a basic diagram of your typical cash flow you have your income maybe you get your income from working from a salary or

Maybe you have a business of your own where you get income so your net worth is basically all the income that you have – all the stuff that you spend every single month if you look at how much you make every month and subtract out how much you spend then that is the amount that you would increase your net worth but there’s other ways to increase your net worth not

Just through income can have bought a house or a property and the value of it will increase but you can’t really count that because you have to live in and can’t count it as a net worth increase until you sell the property i buy something cheap it can have recurring income so this is for like rich people where they have lots and lots of stocks or bonds or something

And every single month it pays dividends you hear about all the stock companies they they go oh yeah we’re paying certain amount percent it ranges from something like nothing to like five eight ten percent of the value of the stock let’s say you have millions of it but then every month you might get ten thousand twenty thousand dollars of money just doing nothing

Most people don’t have that kind of income but it’s good to focus on getting more and more recurring income that way when you get it you don’t have to work better than just one-time income because a recurring one just sits there and just keeps on giving back forever if you do the same amount of work to get one dollar of income per month versus $100 now it’s better

To get the one dollar in recurring income why because or the life of this recurring income let’s say it stays the same it’s going to be a lot more than the $100 so you should really focus your effort of getting recurring income i’m sure there’s other types of income like stock appreciation employee stock purchase plans stock grants options things like that that you

Can get from working at startup so today i want to focus is on expenses you have recurring expenses and regular expenses just like one-time purchases sometimes when you buy something it may seem like a one-time purchase but later on when you’re using it you have to feed it money in order to keep it alive for example a car is not a one-time purchase because over

The life of the car you have to pay for maintenance another example a game console let’s say it’s $400 when you buy it it just doesn’t sit there right you need to buy games to feed it to pay more so when you buy those you have to consider that it’s gonna keep on eating into your expensive not to say that you shouldn’t get it but you should just be aware that when

You get something it’s not just the price of the item you have to consider the recurring costs another example is let’s say a brita water pitcher filter you buy that $20 right but you have to always keep on replacing the filter that might be required necessity so let’s say you have those fixed income of whatever amount and you want to maximize your savings we can

Either concentrate on making more money or spending less you actually should do both just a sidetrack on why you want to increase your net worth well everybody wants to be rich right the end goal could be to retire to not work anymore so you can actually increase your network to a certain point and you fix your standard of living and then you can retire early so

Why would anyone want to increase your network as fast as possible because when you grow it to a certain point you can actually just stop working which is great right because you’re actually retired and then you can actually go and do whatever you like i’m not saying you should retire to sit on the couch and do nothing i’m just pulling facts from left and right of

Things that i’ve came across that if you actually retire early you may shorten your life and because there’s actually nothing that you have to aim toward when i say retire for me i think of it as not working but working for yourself so if i ever retire i’m not going to just sit around i rather would you know build stuff they’ll make a business out of it or what

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Not so obviously right now i’m working on the salary like most people who work on a salary and then try to maximize your income and then you minimize your expenses so your job to get rich is to turn up the knob on the income as much as possible in order to do this of course you try to get i don’t know go to college get an advanced degree or something or start a

Business when you’re working you try very hard to advance your career make as much income as possible i’m not gonna talk about that because it’s very different for every person for the recurring expenses here’s a list of things that are common between people if you have a home you’ll have mortgage that you have to pay hoa coughs every month if you have a car you

Pay car repair fees every year right but you can kind of pretend that it’s a monthly fee bank fees that you should never pay for credit card interest which you really should not have cable dsl cell phone gas electricity trash car insurance and if you don’t own you rent and then you may have bunch of magazine subscriptions that you might or maybe you have a habit

Of buying coffee every single day and end the gym and gas in order to drive to work and you also have lunch fees how much would you spend for lunch every single month eating out i’m going to talk about each one of those and how you could think about eliminating that well you’re rich enough to buy the place that you live in you won’t have a mortgage it’s good and

That you can think of it as if the place that you buy appreciates more than the interest you pay on it but that’s not always a guarantee because we’ve seen that in the housing bus that you don’t always make money on buying homes there’s different ways to think of the mortgage once you buy a place you always have to pay that monthly fee so if it’s like you have

Your bucket of your network everything that you own and you’re poking holes in it and it’s flowing out but you’re filling it up with some income it’s best for you to make these as small holes as possible even eliminate them and then you’ll see that your net worth growing world the ultimate goal is to accumulate a lot of money so that you can retire and not work

Well how much money is enough there studies done that if you make more than $80,000 the happiness level that you attain is not gonna go up any higher than let’s say someone making twice as much well some people might say oh you make twice as much 80 k verse is 160 k then that 160k person who’ll be twice as happy probably not very likely because they may have to

Work a lot harder so in terms of happiness you can attain also the happiness with only 80 k hoi you can’t do anything car repairs you can see that in some of my videos i do my own car repairs i try to do them as much as i can only up to my abilities and if i cannot do it then i have to put it in the shop if you are able to get the skills and just learn how to fix

Your own car of course and you’ll save a lot of money bank fees if you’re plugging all these holes up you would make enough so that you can meet the minimum requirements of the bank so that they don’t take i don’t know $5 $10 a month that’s really hefty just for the bank to hold your money really they should be paying you it requires you to be very disciplined in

Management of your money that’s in the bank if they have a minimum then you should meet that and make sure you never go under credit card interest if you are able to manage your finance as well you wouldn’t have credit card interest in the first place because if you would have paid it all off that’s the first thing that you need to tackle if you do owed a credit

Card any money you’ve got to pay that as soon as possible because that’s a major dream on your expenses really big hole cable i personally don’t watch any cable it’s kind of like a lifestyle choice if you want all the fancy bells and whistles then you would need more and more monthly recurring cost your own personal choice you choose to get all these things for

Cell phone you watch my other video you’ll see that my cell phone plan is actually free every month i use the freedom pop thing and i’ll put a link down below on how you can get that yeah don’t pay $100 a month that’s a major drain on your income lots of people working minimum wage actually has an i phone and they get it with at&t they’re paying 60 to $80 a

Month how can you afford that i mean it’s very expensive you work minimum wage a cell phone actually costs you maybe 5% of your income roughly ditch the cellphone and get the free one the service is not as good gas is really mainly for cooking or heating the water so in order to save on that you really can’t do much other than if when you get a new heater make

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Sure that very well insulated maybe you triple insulate it too so that does the heat doesn’t leak out for electricity i just got one of these just a couple days ago a kilowatt here basically plug in whatever appliance it is and it’ll tell you how much electricity you will use in kilowatt hours so 1 kilowatt hour is roughly about 10 cents so you plug whatever in

All around the house and then you get a good idea of what it’s costing you per month the thing with saving electricity is once you know how much it’s costing you then it becomes a lot easier to go okay let me just unplug that if it’s using vampire power where it’s just drawing electricity without doing anything it’s on but you’re not really using it right it’s

Still drawing electricity there are some appliances that are really bad for that so if you look out for all the vampire draining appliance and just remove them from your outlets that can save you quite a bit to trash is kind of not adjustable because you can have different sizes for the trashcan you can minimize it most likely get the smaller size because if you

Don’t waste much room you won’t have much trash try to be very efficient with your resources with the stuff you buy and cast away and get the smallest trash and then your monthly recurring fee will be lower unless you have a trash can service that’s only one size car insurance you should shop around get the cheapest one but for me i kind of like shy away from the

Really weird sounding ones because their purpose is to deny as much claimed as possible not to allow as many as possible you should not be paying rent you should try as hard as you can to minimize everything all your recurring expenses for everything else if you can’t afford it you live with the roommate or whatever and you live at the cheap place and then you can

Build up your savings and then buy a place that is the ideal way my feeling for renting is that it depends on the market is if the market for housing is really high right now it’s march 2015 right now i personally feel like it’s moderately high it’s not like record high but it’s getting there you might be able to make an argument where okay right now maybe you’ve

Saved up enough for a down payment for a home let’s say you go and buy a place and maybe two three years it goes down then you’ll be underwater the value of the home will be less than what you paid for and that would really suck however there’s no guarantee which way it’s going sometimes you just got to get lucky that your timing of when to buy magazine subscriptions

You really really like the magazine yes go ahead and keep it you read every single page of it every single month sure keep it if you don’t read it it’s probably better to cancel it for your monthly coffee addiction i’m sure you can calculate yourself how much it costs you per year or per month if you get $5.00 coffee every single day then it’ll cost you $150 a

Month that is quite expensive every little bit adds up if you get a coffee if you get cable if you get to put your cell phone bill at the end you’re paying like five hundred one thousand dollars per month for all these luxuries that you’re getting there’s a way to find alternatives that are pretty good for example toefl you can get the freedompop thing for cable

You don’t really really need the cable to watch everything you know have a thousand channels that you don’t watch you can just go and rent the dvd i mean how many of those would you rent a month you may rent only ten of them versus a cable might cost you $100 a month versus ten dollars if you rent the dvd you’re a big sports fan so maybe you need it there’s always

Something that you will not give up everybody’s tolerance is different for certain things and if you really want to save as much as possible you have to look at what you like in a ‘we really how much is your time worth – is being financially independent worth not watching some tv let’s say you castaway the coffee i don’t i personally don’t drink coffee i drink tea

And i mean i could go and get tea every single day but i don’t i just make my own gym i don’t agree with gym memberships because it’s just so strange to me to go to a place to workout in one single spot especially because it’s cost money you can actually go run outside why don’t you run outside and you can i mean for weights you can just buy your own weight and do

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It at home of course it’s not as fun i guess having to drive to the gym which you shouldn’t really be doing because why would you want to drive the gym then you waste gas gym is nice because you can run in the same spot and you won’t have traffic cry and hit you you want to do this safely so if you don’t get the gym i wouldn’t go running around across everywhere

Because that just increases your chance of getting run over if you do run a lot it’s nice to run somewhere safe around the park is best you have to look at the safety trade-off gas everybody has a car in the u.s. almost everybody if you don’t live in the very densely populated areas then you need a car then you need to buy gas if you stuck with the gas car like i

Am then you just try to get the cheapest gas i’m sure everybody knows how to get the cheapest gas go on i use i personally use gas and i just look up where it is cheapest and we’re on route it is get the cheapest gas i will not drive more than half a mile off my route in order to go to a gas station because sometimes if you have to also factor in well

If you save a certain amount per gallon for gas you have to take into account how much gas you’re getting therefore meaning how much you’re actually saving let’s say you’re getting 10 gallon it’s 10 cents cheaper down the road so you’re saving $1 so right now let’s say gas is $4 a gallon let’s say your car gets 40 miles per gallon that means you essentially save

A quarter gallon and you can drive up to five miles if you’re filling up 10 gallon you can drive up to five miles to the new gas station and break even you’re also spending extra gas just to go to the gas station you’re also spending extra time to drive the gas station so for most cases it’s not worth it to go to a gas station that’s too far off that’s more than

Like half a mile off from where you’re gonna go that’s my experience so you don’t even have to look at oh where’s the cheapest oh i’m gonna drive all the way 10 miles somewhere just to get the cheapest gas no it’s not worth it are you gonna get the costco gas which is like a little bit cheaper well waiting in line for costco gas is not worth it because you wait

Too long it’s like 10-15 minutes not worth it why because if you get gas at somewhere equivalent let’s say 76 or something and then you also use a gas card which gets you five percent i have the the credit card video that i have that that tells you which card to use the pricing of the gas that you get at any random station is roughly equivalent to the costco gas

Which means if you get costco gas you are actually wasting time when the price is roughly equivalent so therefore i don’t get costco gas you should also look at how much you go out every single day when you’re at work and you go to lunch and you buy lunch it would be great if you could work for one of those high-tech firms where it gives you free lunch every single

Day that’s good that’s a perk not everyone can have that let’s say you live in the city the lunch will on average cost twelve to fifteen dollars and that is a big chunk of change if you do that for a whole month or every single day that’s about 300 dollars a month if you make a lot i guess it’s okay to spend it you know you’re just enjoying the luxury there’s a

Health concern here too when you go out to eat it’s always a bit more salty there’s bit more fat most of time not as good for you as if you bring your own lunch and you know the contents of the lunch and you make it healthy for yourself for me i most the time prefer to bring my own lunch which is what i do so those are the recurring expenses so you should look at

The and minimize all of those some things you just can’t minimize so so be it right but if you’re able to plug them as much as these as you can you can increase your net worth the earlier on you do the the bigger the faster the snowballing effect becomes it’s actually exponential so the earlier you do this and you consistently do this and say lots of money it’s

Just going to grow you know the whole compound interest thing you know i think i’ve talked way too much here on this one and i hope all the information is useful thanks for watching don’t forget to click like and subscribe over here thanks for watching

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Increase Cash Flow and Become Rich! | BeatTheBush By BeatTheBush

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