Why Making More Money Doesn't Mean You're Getting Richer

Gus: What's going on everybody? Welcome back to the Growth Thread Podcast. I'm Gus and I'm Hector. Hec: What's going on everybody? Welcome back to the Growth Thread Podcast. I'm Gus and I'm Hector. Gus: And today we're gonna be talking about a topic that everybody seems to love to talk about. Mm-hmm. Money. Personal finances. Personal finances, how to save, how to invest, how to budget, how to understand your needs versus your wants and everything that goes into that. Yep. And we'll talk about our own personal anecdotes. We'll go into sta stats and data that we've researched, preparing for this episode and we'll go from there. Yeah, for sure. And a thing to note is this is the Hec: And today we're gonna be talking about a topic that everybody seems to love to talk about. Mm-hmm. Money. Personal finances. Personal finances, how to save, how to invest, how to budget, how to understand your needs versus your wants and everything that goes into that. Yep. And we'll talk about our own personal anecdotes. We'll go into sta stats and data that we've researched, preparing for this episode and we'll go from there. Yeah, for sure. And a thing to note is this is the Gus: first episode of a series dedicated to finance in general, both Hec: first episode of a series dedicated to finance in general, both Gus: personally and also as it relates to business and investing. So this episode we hope lays a good foundation for all of the main topics related to finance and as we start to build on top of that and we go on this journey, we can eventually bring in experts in related fields, people that, you know, have done this and have a lot more experience than either of you or either you or I have. And we don't have to relate so much on the data and the research that we've done, but we can hear it directly from the people that are doing Hec: personally and also as it relates to business and investing. So this episode we hope lays a good foundation for all of the main topics related to finance and as we start to build on top of that and we go on this journey, we can eventually bring in experts in related fields, people that, you know, have done this and have a lot more experience than either of you or either you or I have. And we don't have to relate so much on the data and the research that we've done, but we can hear it directly from the people that are doing Gus: it out and in our non our network, our economy, or you know, anybody that that we talk to. Yeah, absolutely. I think we can get a little bit more niche on the topics that we discuss. Mm. You know, we can talk to an accountant about taxes and things like that, right? We could talk about to wealth managers about how they do and deal with their clients and what advice they're giving, stockbrokers and how they invest. Yep. And everything in between. So I think that this is one of the categories that Hector and I love to talk about in our day to day lives. Hec: it out and in our non our network, our economy, or you know, anybody that that we talk to. Yeah, absolutely. I think we can get a little bit more niche on the topics that we discuss. Mm. You know, we can talk to an accountant about taxes and things like that, right? We could talk about to wealth managers about how they do and deal with their clients and what advice they're giving, stockbrokers and how they invest. Yep. And everything in between. So I think that this is one of the categories that Hector and I love to talk about in our day to day lives. Gus: Love to discuss and from our own personal experience we've been able to have different perspectives in the world of personal finance from the moment we got our first jobs, I was sixteen. I don't know how old you were when you got your first job. Yeah, I was like fourteen. Yeah, fourteen. Hec: Love to discuss and from our own personal experience we've been able to have different perspectives in the world of personal finance from the moment we got our first jobs, I was sixteen. I don't know how old you were when you got your first job. Yeah, I was like fourteen. Yeah, fourteen. Gus: And then going to you know salary position after I graduated college and then now I'm in a hundred percent commission based job. So it's like I've dealt with all three different ways of getting paid, I guess if you could say. Yeah, very interesting. How how do you think your journey has changed since you know you took that first job at sixteen and you know how how you deal with money and and getting paid today and how you manage your wealth? Yeah, so when I was Hec: And then going to you know salary position after I graduated college and then now I'm in a hundred percent commission based job. So it's like I've dealt with all three different ways of getting paid, I guess if you could say. Yeah, very interesting. How how do you think your journey has changed since you know you took that first job at sixteen and you know how how you deal with money and and getting paid today and how you manage your wealth? Yeah, so when I was Gus: sixteen I started working at the Nickelodeon Hotel as a lifeguard. Shout out the Nickelodeon Hotel. I'm not sure it's around anymore. is it? I think it's just like a best western now or something. Are you serious? Yeah, it's like a holiday. Hec: sixteen I started working at the Nickelodeon Hotel as a lifeguard. Shout out the Nickelodeon Hotel. I'm not sure it's around anymore. is it? I think it's just like a best western now or something. Are you serious? Yeah, it's like a holiday. Gus: so the I think they lost the license 'cause you know that they like Nickelodeon just licensed to hotel. And so I started making ten dollars an hour at sixteen as a sophomore junior in in high school. Mm. And man, ten dollars an hour in that time was awesome. In the two thousands? In the two thousands, dude. Thousand ten. Two thousand yeah, I was twenty I was twenty thirteen to twenty fourteen. okay, okay. Yeah, tw yeah, fourteen fifteen. And yeah. Hec: so the I think they lost the license 'cause you know that they like Nickelodeon just licensed to hotel. And so I started making ten dollars an hour at sixteen as a sophomore junior in in high school. Mm. And man, ten dollars an hour in that time was awesome. In the two thousands? In the two thousands, dude. Thousand ten. Two thousand yeah, I was twenty I was twenty thirteen to twenty fourteen. okay, okay. Yeah, tw yeah, fourteen fifteen. And yeah. Gus: started making ten bucks an hour and I remember summers dude, they would schedule me six, seven days, eight hour shifts. So I was cashing I was working all the time, cashing my money. And of course as a kid, right, like my dad paid for my my parents paid for a lot of things. So I just you know, money for gas and then money to hang out, buy clothes, buy things for for myself. Fun money. Fun money, yeah. There was no real need to structure myself personally with how I budgeted my Hec: started making ten bucks an hour and I remember summers dude, they would schedule me six, seven days, eight hour shifts. So I was cashing I was working all the time, cashing my money. And of course as a kid, right, like my dad paid for my my parents paid for a lot of things. So I just you know, money for gas and then money to hang out, buy clothes, buy things for for myself. Fun money. Fun money, yeah. There was no real need to structure myself personally with how I budgeted my Gus: my money and and and my w bi weekly income. Of course it was just there's no need for it at no point. So I didn't my dad would always teach me on how to do things but I never really had to do it myself. Went to college, in college I would get scholarship money and then my dad would send me an allowance. So, you know, they took care of a lot of things for me. Sure. And was able to manage how to like okay not eat here, eat here or maybe I shouldn't spend on this. You know, that made it a little bit more difficult but Hec: my money and and and my w bi weekly income. Of course it was just there's no need for it at no point. So I didn't my dad would always teach me on how to do things but I never really had to do it myself. Went to college, in college I would get scholarship money and then my dad would send me an allowance. So, you know, they took care of a lot of things for me. Sure. And was able to manage how to like okay not eat here, eat here or maybe I shouldn't spend on this. You know, that made it a little bit more difficult but Gus: But it was still I was able to get by smoothly. Sure. Then I got my salary job and then that's when I really started realizing that okay, I need to figure out how to structure this because I'm getting paid quite a quite a bit bi weekly and now now I have a different payments and now I'm I'm spending more because I'm making more. Sure. So I I went through that realization within the first two or three years of of making salary money and now as a commission base, it's a completely different structure. Yeah, it's a whole beast. It's a whole beast, man. So yeah, that was Hec: But it was still I was able to get by smoothly. Sure. Then I got my salary job and then that's when I really started realizing that okay, I need to figure out how to structure this because I'm getting paid quite a quite a bit bi weekly and now now I have a different payments and now I'm I'm spending more because I'm making more. Sure. So I I went through that realization within the first two or three years of of making salary money and now as a commission base, it's a completely different structure. Yeah, it's a whole beast. It's a whole beast, man. So yeah, that was Gus: my path in in in a quick rundown. Sure of of the generation of of income. That's right. Yeah. Yeah. How you brought it in. Yeah, the changes I went through. And yeah, it it was different. we'll and we'll discuss this a little bit more later, but as a salary employee you have a budget bi weekly in mind. And then you work from there as okay, these are my fixed costs, right? My payments, car payments, whatever. And then from there you move on to okay, now I have usually this much, around this much left Hec: my path in in in a quick rundown. Sure of of the generation of of income. That's right. Yeah. Yeah. How you brought it in. Yeah, the changes I went through. And yeah, it it was different. we'll and we'll discuss this a little bit more later, but as a salary employee you have a budget bi weekly in mind. And then you work from there as okay, these are my fixed costs, right? My payments, car payments, whatever. And then from there you move on to okay, now I have usually this much, around this much left Gus: So now that's kinda what I can use to go out, go to dinners and stuff like that. Yeah, yeah. No, i for sure. like you, one of my first jobs was actually twisty treat. actually no, my very first job was cleaning hotels. Mm-hmm. but that was it's a whole a story for another day. Yeah. I was below age, you know, just trying to make a buck. I knew a couple of friends. but you know, always just trying to grind, always try make money. And at that age, you know, a anything, you know, was was good. yeah. Hec: So now that's kinda what I can use to go out, go to dinners and stuff like that. Yeah, yeah. No, i for sure. like you, one of my first jobs was actually twisty treat. actually no, my very first job was cleaning hotels. Mm-hmm. but that was it's a whole a story for another day. Yeah. I was below age, you know, just trying to make a buck. I knew a couple of friends. but you know, always just trying to grind, always try make money. And at that age, you know, a anything, you know, was was good. yes. My first Gus: check actually I'll I'll never forget it was in the amount of like seven dollars and a couple of cents. Yeah. And the guy that handed it to me, we we both kind of laughed and I was he was like, dude, you know, this is just something you may maybe just don't even cash it, just keep it. And I should have kept it, but at the time I'm like whatever, I'll deposit it. I need it. No, I need it. I need this. Yeah. no but yeah I mean what my first job was was twisty treat. I to work with all my friends and dude it was so bad. It was all also fun Hec: check actually I'll I'll never forget it was in the amount of like seven dollars and a couple of cents. Yeah. And the guy that handed it to me, we we both kind of laughed and I was he was like, dude, you know, this is just something you may maybe just don't even cash it, just keep it. And I should have kept it, but at the time I'm like whatever, I'll deposit it. I need it. No, I need it. I need this. Yeah. no but yeah I mean what my first job was was twisty treat. I to work with all my friends and dude it was so bad. It was all also fun Gus: on money, right? So every week we'd get every other week we'd get paid and just go to the mall spend all of it. Yeah. Which is terrible advice. I wish I could go back and be like, dude just save some of that money. but whatever it Hec: on money, right? Mo most of my necessities were taken care of. I live at home so every week we'd get every other week we'd get paid and just go to the mall spend all of it. Yeah. Which is terrible advice. I wish I could go back and be like, dude just save some of that money. but whatever. Gus: had a a like a semi ten ninety nine job 'cause I I always work for tips. Yeah. You know, in the service industry, serving, bartending. So it really like you never really cared about your fixed rate 'cause it that was just to cover taxes or whatever. And it was always how hard you work and how good you are at your job determines how much money you're gonna make. You if you are you picking up the right shifts. Are you good enough to have the the best shifts? Yeah. Or whatever it is. and Hec: had a a like a semi ten ninety nine job because I I always work for tips. Yeah. You know, in the service industry, serving, bartending. So it really like you never really cared about your fixed rate because it that was just to cover taxes or whatever. And it was always how hard you work and how good you are at your job determines how much money you're gonna make. And if you are you picking up the right shifts, are you good enough to have the the best shifts? Yeah. Or whatever it is. and after college, I I went into the a hundred percent commission based in industry in two thousand and twenty one, started real estate, so two thousand twenty. And and yeah, now it's very different. So to your point, right? You have this era where, you know, when you're an on a salaried Gus: after college, I d I went into the a hundred percent commission based in industry in two thousand and twenty one, started real estate, so two thousand twenty. And and yeah, now it's very different. So to your point, right? You have this era where, you know, when you're an unassalaried income you're able to know exactly what's coming in each month and then you can calculate all of your expenses and know how much is left over, how much you can you can save for an emergency fund, how much you can invest with, how much you can I don't know, put put away for another expense that that you're trying to save up for, whatever it is. Yeah. but when your salaried or sorry, when you're a ten ninety nine yeah and it's all commission based, you have to project out what it is that you're gonna make. Yeah. So you have to Hec: income you're able to know exactly what's coming in each month and then you can calculate all of your expenses and know how much is left over, how much you can you can save for an emergency fund, how much you can invest with, how much you can I don't know, put put away for another expense that that you're trying to save up for, whatever it is. Yeah. but when your salaried or sorry, when you're a ten ninety nine yeah and it's all commission based, you have to project out what it is that you're gonna make. Yeah. So you have to Gus: Hope that your projections right and you can make a certain amount in the year and then work backwards to figure out how much you can spend on on certain things like living, you know, basic needs, necessities, et cetera, insurances, whatever. and that's a harder thing to do. It's a it's a it makes that form of income even riskier. Right. And, you know, again, we back to our conversation from the other day, the risk reward Hec: Hope that your projections right and you can make a certain amount in the year and then work backwards to figure out how much you can spend on on certain things like living, you know, basic needs, necessities, et cetera, insurances, whatever. and that's a harder thing to do. It's a it's a it makes that form of income even riskier. Right. And, you know, again, we back to our conversation from the other day, the risk reward Gus: of what it what it is to work ten ninety nine versus W two. Mm-hmm. Yeah, absolutely. And it's funny 'cause going back to my like whenever you were working as a server, first of all, I wanna say Hec: of what it what it is to work ten eighty nine versus W two. Mm-hmm. Yeah, absolutely. And it's funny 'cause going back to my like whenever you were working as a server, first of all, I wanna say I'm Gus: I'm probably going to encourage my kids to get a serving job dude early on in their lives. Yeah. Not only does it teach you some of the most important social skills you can have, how to, you know, customer service, how to, you know, always keep a positive attitude, even in the in one of the toughest jobs and and I'm assuming a lot of people that are watching us had at some point a restaurant or service based job, whether that's bartending or whether that's serving. you learned so much. Hec: probably going to encourage my kids to get a serving job dude. Early on in their lives. Yeah. Not only does it teach you some of the most important social skills you can have, how to, you know, customer service, how to, you know, always keep a positive attitude, even in the in one of the toughest jobs and and I'm assuming a lot of people that are watching us had at some point a restaurant or service based job, whether that's bartending or whether that's serving. you learn so much, Gus: much so much people so many people skills that you can later apply to other yeah jobs. But another interesting part about serving or tips tip jobs for tips is Hec: so much people so many people skills that you can later apply to other jobs. But another interesting part about serving or tips tip jobs for tips is Gus: how in your mind you can be like, I need to buy this or this is payments coming up, I'm just gonna pick up this shift and I'll and I and you avo you think in your I'll average a hundred and fifty bucks, two hundred bucks and I'll have that money. you can always work more. Work more. Yeah exactly and then predict I need to buy this is I wanna buy this Playstation, I'll just work two shifts, I'll get the Playstation kind of thing. You know? That's that's one of the interesting things about the service industry. Yeah. for sure. I I totally agree. Yeah. So Hec: how in your mind you can be like, I need to buy this or this is payments coming up, I'm just gonna pick up this shift and I'll and I and you avo you think in your I'll average a hundred and fifty bucks, two hundred bucks and I'll have that money. you can always work more. Work more. Yeah exactly and then predict I need to buy this is I wanna buy this Playstation, I'll just work two shifts, I'll get the Playstation kind of thing. You know? That's that's one of the interesting things about the service industry. Yeah. for sure. I I totally agree. Yeah. So Gus: One of the things that we also want to discuss here as far as how we've been able to manage our our commission based job or role, right? Is the way you were you were and you were explaining this a little bit briefly there. I it's the way you're supposed to understand what you make and what you're spending on. I think a lot of people don't really know how much they're spending. I think we saw a stat Hec: One of the things that we also want to discuss here as far as how we've been able to manage our our commission based job or role, right? Is the way you were you were and you were explaining this a little bit briefly there. I it's the way you're supposed to understand what you make and what you're spending on. I think a lot of people don't really know how much they're spending. I think we saw a stat Gus: earlier when we were re when we were doing the research that said that most people think that just in subscriptions they're spending what was it like eighty three dollars eighty three dollars and in reality that it's like two hundred yeah it's like two hundred and sixty dollars. So that's I I would say that that's the first step in What's the set? Here we'll I'll pull it up. Yeah I think it's a little bit up there. it said some people are spending I would say it's about Hec: earlier when we were re when we were doing the research that said that most people think that just in subscriptions they're spending what was it like eighty three dollars eighty three dollars and in reality that it's like two hundred yeah it's like two hundred and sixty dollars. So that's I I would say that that's the first step in what's the set? Here we'll I'll pull it up. Yeah I think it's a little bit up there. it said some people are spending I would say it's about Gus: Eighty six they think in their head they're spending t eighty six or eighty three dollars. Yeah. Hec: Eighty six they think in their head they're spending t eighty six or eighty three dollars. Yeah. spending eighty three dollars and they're actually spending two hundred and sixty six dollars in sta in in subscription base which is which is the point right you guys have to make sure that you understand very deeply what it is that you guys are spending whether it's fixed or recurring or subscriptions or whatever it is the the first thing you start whenever you want to okay I want to better Gus: spending eighty three dollars and they're actually spending two hundred and sixty six dollars in sta in in subscription base, which is which is the point, right? You guys have to make sure that you understand very deeply what it is that you guys are spending, whether it's fixed or recurring or subscriptions or whatever it is, the the first thing you start whenever you wanna okay, I wanna better Hec: the way I do per my my my finances is to understand everything about it. How much Gus: the way I do per my my my finances is to understand everything about it. How much you're Hec: You're making, and then that's a little bit harder when you're commission-based, right? Because you don't know what your next check's gonna look like. But it's also about how you look at your bank accounts, and I know it's a bit t tedious, and sometimes it could bring you down a little bit, you know what I mean? Like it can make you a little bit sad when you start realizing per month how much you're actually spending. Because I feel like people undershoot it all the time. I think that's Gus: making and then that's a little bit harder when you're commission based, right? Because you don't know what your next check's gonna look like. But it's also about how you look at your bank accounts and I know it's a bit t tedious and sometimes it could bring you down a little bit, you know what I mean? Like it can make you a little bit sad when you start realizing per month how much you're actually spending. 'Cause I feel like people undershoot it all the time. I think that's like a a human trait to do, you know what I mean? Or on the ten ninety Hec: like a human trait to do, you know what I mean? Or on the 1099. nine side overestimate how much you're gonna make. Sure. Yeah, yeah. That's true. So that's a constant battle of like Gus: nine side, overestimate how much you're gonna make. Sure. Yeah, yeah, that's true. So that's a constant battle of like y you wanna be optimistic about how much money you're gonna make, you wanna be optimistic about how your sales quarter is gonna go or what the bonus is gonna be like. But, you know, the same way that you need to underestimate what you're gonna spend, you need to or sorry, overestimate what you're gonna spend, you need to underestimate what you're gonna make. Sure. So you can always have a small buffer to work with. Absolutely. And so if we wanna recommend anything, there's a lot of different books, different articles that we've read preparing for this and even before this when we first Hec: y you wanna be optimistic about how much money you're gonna make, you wanna be optimistic about how your sales quarter is gonna go or what the bonus is gonna be like. But, you know, the same way that you need to underestimate what you're gonna spend, you need to or sorry, overestimate what you're gonna spend, you need to underestimate what you're gonna make. Sure. So you can always have a small buffer to work with. Absolutely. And so if we wanna recommend anything, there's a lot of different books, different articles that we've read preparing for this and even before this when we first Gus: discuss this topic. We we mentioned the fact that one of the best books I have ever read, especially for personal finance, was Rich Dad Poor Dad. Amazing. That book we'll link it to the newsletter. We will make sure that you guys get a link to this because that's probably one of the first places I would start if you want to get better at understanding how to budget and save and invest. It's Rich Dad Poor Dad, which basically the it's an ironic title because his rich dad was Hec: discuss this topic. We we mentioned the fact that one of the best books I have ever read, especially for personal finance, was Rich Dad Poor Dad. Amazing. That book we'll link it to the newsletter. We will make sure that you guys get a link to this because that's probably one of the first places I would start if you want to get better at understanding how to budget and save and invest. It's Rich Dad Poor Dad, which basically the it's an ironic title because his rich dad was Gus: the one that didn't go to college, was the one that didn't have a degree, didn't have a salary, didn't have a stable job, yet he became the rich dad because he was just very savvy with how he handled his finances. And then opposite to that was the poor dad who was had a PhD, was had a stable salaried job and just always followed the rules. Followed the rules and stayed there. They took no risks, basically got improved like his his salary improved gradually through his thirty years of career. Hec: the one that didn't go to college, was the one that didn't have a degree, didn't have a salary, didn't have a stable job, yet he became the rich dad because he was just very savvy with how he handled his finances. And then opposite to that was the poor dad who was had a PhD, was had a stable salaried job and just always followed the rules. Followed the rules and stayed there. They took no risks, basically got improved like his his salary improved gradually through his thirty years of career. Gus: But ne was never considered a rich person because as his salary increased, so did his expenses. Mm. And so people, you know, ev even people who are making a lot of really good money, they're not technically rich because they've as soon as that check comes in, it just as as fast as it comes in it goes out, you know. Right. Yeah. I I totally agree with you. Rich Chat Portad was probably the first book I ever read that was Hec: But ne was never considered a rich person because as his salary increased, so did his expenses. Mm. And so people, you know, ev even people who are making a lot of really good money, they're not technically rich because they've as soon as that check comes in, it just as as fast as it comes in it goes out, you know. Right. Yeah. I I totally agree with you. Rich Chat Portoad was probably the first book I ever read that was Gus: it was the book that kicked everything off in terms of self development and and and understanding of Hec: it was the book that kicked everything off in terms of self development and and an understanding of how to assess things like assets versus liabilities, how to understand, you know, why you should manage your your expenses every month and then use those savings to reinvest into assets so that you can have more money the following month and the following month after that. Yep. And it I I think that was the first book that I ever read in that category. And then the second one was think and grow rich. Gus: How to assess things like assets versus liabilities, how to understand, you know, why you should manage your your expenses every month and then use those savings to reinvest into assets so that you can have more money the following month and the following month after that. Yep. And it I I think that was the first book that I ever read in that category. And then the second one was think and grow rich. Hec: yeah. I I haven't read that one in a long time but it's kinda lengthy. It's ri not as simple yeah as Rich Dad Port had such a good story w the way that he analyzes and breaks down the things that that you can see in a cash flow statement or a a financial statement. Yeah. wrapped around a good narrative, a good story that everybody can relate with, I thought was an amazing presentation of Gus: yeah. If you ever I I haven't read that one in a long time, but it's kinda lengthy. It's not as simple as Rich Dad Port. good story w the way that he analyzes and breaks down the things that that you can see in a cash flow statement or a a financial statement wrapped around a good narrative, a good story that everybody can relate with, I thought was an amazing presentation of a complex financial topics. Yeah. And it was just it was a life changing book in my opinion as well. For sure. Yeah, yeah. I think Rich dot portat is more of a practical, like you can up start applying everything to your life immediately. Yep. I think think and grow rich, for example, is more psychological. It's kinda like how your mindset shifts around money. Yeah. And how it shifts around that same thing with the psychology of money. Yeah. which I think you've also mentioned Yeah, that's the one that I strongly recommend. A little a little bit more recent in my brain. Sure. I read that one Hec: complex financial topics. Yeah. And it was just it was a life changing book in my opinion as well. For sure. Yeah, yeah. I think Rich dot portat is more of a practical, like you can u start applying everything to your life immediately. Yep. I think think and grow rich, for example, is more psychological. It's kinda like how your mindset shifts around money. Yeah. And how it shifts around that same thing with the psychology of money. Yeah. which I think you've also mentioned Yeah, that's the one that I strongly recommend. A little a little bit more recent in my brain. Sure. I read that one a few years ago, like two or three Gus: few years ago, two or three Hec: three years ago. But again to your point, it shows how Gus: years ago, but again to your point, it shows how money is handled psychologically rather than what it should be, which is, you know, a tool to get to things that or to get to the things that you want to achieve. Sure. And oftentimes whether we you know build careers in finance or we work very hard to treat money as as a tool, there's we're still humans. Yeah at and at at our essence. And so it we still behave psychologically or emotionally with with money. I agree. Yeah, it's one of those topics I don't know Hec: money is handled psychologically rather than what it should be, which is, you know, a tool to get to things that or to get to the things that you want to achieve. Sure. And oftentimes whether we you know build careers in finance or we work very hard to treat money as as a tool, there's we're still humans. Yeah at and at at our essence. And so it we still behave psychologically or emotionally with with money. I agree. Yeah, it's one of those topics I don't know Gus: this happens to you or you've noticed it, but it's not something that people like to talk about socially. Which I think it might be wrong of us not to, right? Like I don't think we're sitting around discussing our Hec: this happens to you or you've noticed it, but it's not something that people like to talk about socially. Which I think it might be wrong of us not to, right? Like I don't think we're sitting around discussing our Gus: how much we make or how much we spend or how much our car payments are, how much our you know what I mean? Yeah, I never think that's necessary in a social setting anyway. Right. And and because you know you we there's this mindset of like, he probably makes a lot, he probably makes little, he does it you we I don't wanna sound like I'm spending too much or I'm making too much and this guy doesn't you know what I mean? So that's kind of like the the topic. But it is something that's important to me. It's the process. It's the process, yeah. The behavior yeah of what you do that's important. I agree. Yeah. Yeah. Speaking Hec: how much we make or how much we spend or how much our car payments are, how much our you know what I mean? Yeah, I never think that's necessary in a social setting anyway. Right. And and because you know you we there's this mindset of like, he probably makes a lot, he probably makes little, he does it you we I don't wanna sound like I'm spending too much or I'm making too much and this guy doesn't you know what I mean? So that's kind of like the the topic. But it is something that's important to me. It's the process. It's the process, yeah. The behavior yeah of what you do that's important. I agree. Yeah. Yeah. Speaking Gus: of when we were just when we were doing this research, what was the stat on how how much car payment, like the average car payment nowadays in the United States? here I'll put up. Yeah. Hec: Of when we were just when we were doing this research, what was the stat on how how much car payment, like the average car payment nowadays in the United States? here I'll put it up. Yeah. The average new car payment in Q three 2026 was seven or yeah, seven hundred and eighty-seven dollars a month. One in five new car buyers pay over a thousand. Gus: The average new car payment in Q three two thousand twenty six was seven or yeah, seven hundred and eighty seven dollars a month. One in five new car buyers pay over a thousand. So one in five people in the world, right, or in the United States, are paying a thousand dollars a month for their cars. Yeah. That's crazy. Yeah, I mean that's a going right for a new car, dude. That's crazy. But that's what I'm saying. So i if you have a salary Hec: So one in five people in the world, right, or in the United States are paying a thousand dollars a month for their cars. Yeah. That's crazy. Yeah, I mean that's a going right for a new car, dude. That's crazy. But that's what I'm saying. So i it if you have a salary Gus: Position, which I can talk about because I had it for about five to six years. Sure. You can eat very it's a lot easier for people who have a salary position to be able to budget a car payment, a house payment Hec: position, which I can talk about because I had it for about five to six years, sure. You can e very it's a lot easier for people who have a salary position to be able to budget a car payment, a house payment into their salary. Right. Right. So so it makes it easier to under to to do the formula and work backwards, right? All So this is how much I make, this is my car, this is my house, this is my insurance, this is that. And at the end, this is what I got left over. And that's kind of what you play with with the things you want, investing, saving Gus: into their salary. Right. Right. So so it makes it easier to under to to do the formula and work backwards, right? All so this is how much I make, this is my car, this is my house, this is my insurance, this is that. And at the end, this is what I got left over. And that's kind of what you play with with the things you want, investing, saving. Yeah, your cash flows are predictable. Right. They're consistent. Right. And you know what you're working with. But in the one hundred percent commission based industry, you take on this thousand dollar car payment and your cash flows aren't the same. So if you go two, three months without closing a deal or getting a sale, that thousand dollars doesn't stop because you didn't get a paycheck. Yeah. So you you have to continue to build that buffer and then chip away at it so that your cash flow never goes negative. And that's the game you have to play. Hec: and whatnot. Yeah, your cash flows are predictable. Right. They're consistent. Right. And you know what you're working with. But in the one hundred percent commission based industry you take on this thousand Dollar car payment and your cash flows aren't the same. So if you go two, three months without closing a deal or getting a sale, that thousand dollars doesn't stop because you didn't get a paycheck. Yeah. So you you have to continue to build that buffer and then chip away at it so that your cash flow never goes negative. And that's the game you have to play, Gus: Which involves a lot more Hec: which involves a lot more Gus: disciplined budgeting and expense management so that you can understand the cash flows throughout the year and know, for example, if you're in a cyclical business or a a seasonal business, that there are gonna be quarters that are stronger in terms of sales volume than others. So you need to be overly prepared for when those expenses continue to hit. Right. it's not as simple as, you know, I make X amount of money a month, that paycheck's gonna come if as long as I have this job and then I can break that down between my wants, my needs, my investments, etcetera. Absolutely. And Hec: disciplined budgeting and expense management so that you can understand the cash flows throughout the year and know, for example, if you're in a cyclical business or a a seasonal business, that there are gonna be quarters that are stronger in terms of sales volume than others. So you need to be overly prepared for when those expenses continue to hit. Right. it's not as simple as, you know, I make X amount of money a month, that paycheck's gonna come if as long as I have this job and then I can break that down between my wants, my needs, my investments, etcetera. Absolutely. And Gus: You you can go a little bit deeper 'cause think this is one that it hits us every day, right? And we've been talking about it Hec: You you can go a little bit deeper 'cause think this is one that it hits us every day, right? And we've been talking about it Gus: When I first started started working in this industry, you gave me a rundown of how you would do it and now that especially after you had a couple of years of experience with it. Sure. I know you mentioned obviously on a ten ninety nine, on a hundred percent commission base, the first thing you think about is taxes. You immediately separate your money for taxes. Right. That's that's probably the most important one. Then you said then you talked about the the buffer, the high the the the the runway. Right. Right? Yep. what would you say comes after that? Your fixed cost? Hec: When I first started started working in this industry, you gave me a rundown of how you would do it and now that especially after you had a couple of years of experience with it. Sure. I know you mentioned obviously on a ten ninety nine, on a hundred percent commission base, the first thing you think about is taxes. You immediately separate your money for taxes. Right. That's that's probably the most important one. Then you said then you talked about the the buffer, the high the the the the runway. Right. Right? Yep. what would you say comes after that? Your fixed cost? Gus: Yep. Fix well Hec: Yep. Fix well Gus: You want to build your runway over time. because you can't just throw everything in your runway and that's great. I mean, if you can, great. Then put away your runway, your cash runway, and then handle everything else. But most times you're you're paying off all of your fixed expenses and whatever variable expenses you have, and you start building up these different accounts. So you have your account that's specifically paid for prepaid taxes so that, you know, you you collect everything up front. The good thing about being ten ninety nine is you get to deduct all of your business Hec: You want to build your runway over time. because you can't just throw everything in your runway and that's great. I mean, if you can, great. Then put away your runway, your cash runway, and then handle everything else. But most times you're you're paying off all of your fixed expenses and whatever variable expenses you have, and you start building up these different accounts. So you have your account that's specifically paid for prepaid taxes so that, you know, you you collect everything up front. The good thing about being ten ninety nine is you get to deduct all of your business Gus: Expenses off the top and then pay your taxes at the end of the year with with what's left over. That's a phenomenal benefit. But with that in mind, if you don't think about what taxes are gonna be like the following year, you you're hit with a massive tax bill and you better be prepared to handle that cash outflow when Uncle Sam comes calling. So putting that tax account aside, then managing all the fixed expenses, and then starting to build that cash runway, which is just a factor of Hec: Expenses off the top and then pay your taxes at the end of the year with with what's left over. That's a phenomenal benefit. But with that in mind, if you don't think about what taxes are gonna be like the following year, you you're hit with a massive tax bill and you better be prepared to handle that cash outflow when Uncle Sam comes calling. So putting that tax account aside, then managing all the fixed expenses, and then starting to build that cash runway, which is just a factor of Gus: Of the fixed expenses times, the amount of months that you want to have fully protected. Meaning, if my fixed expenses between my house, my insurances, my my cars, my meals, gym utilities, all these things that I need to run my life that are fixed, I want to have at least six months in a fund as a cash buffer. Hec: Of the fixed expenses times, the amount of months that you want to have fully protected. Meaning, if my fixed expenses between my house, my insurances, my my cars, my meals, gym utilities, all these things that I need to run my life that are fixed, I want to have at least six months in a fund as a cash buffer. Gus: in case anything goes wrong. And in our world, right, six months is a pretty normal lead time for deals. Yeah. So you want to even for us, even longer than that. Ideally, Bill Gates actually was kind of I think one of the first entrepreneurs that Hec: in case anything goes wrong. And in our world, right, six months is a pretty normal lead time for deals. Yeah. So you want to even for us, even longer than that. Ideally, Bill Gates actually was kind of I think one of the first entrepreneurs that Gus: was very vocal about having this this buffer when he started Microsoft, he always wanted to have a year's worth of expenses on the books in cash in case anything happened. So imagine the the level of safety and security your company has or you would have when you are you know making sales and projecting your your sales out forward. Yep. But knowing that you have a year's worth of money in the bank to cover everything in case everything goes wrong, the economy goes to shit, and and you have to pay everybody Hec: was very vocal about having this this buffer when he started Microsoft, he always wanted to have a year's worth of expenses on the books in cash in case anything happened. So imagine the the level of safety and security your company has or you would have when you are making sales and projecting your your sales out forward. Yep. But knowing that you have a year's worth of money in the bank to cover everything in case everything goes wrong, the economy goes to shit, and and you have to pay everybody Gus: up for one year, you ask yourself, can we dig ourselves out of that hole? Can we go a year without making money? If the answer is yes, right, then the next question is, okay, well we have a year to make money. Right. Right. And then you're like, all right, we can of course we can make a money in a year. Right. If we all are like doing this, yeah, we'll have a year to to turn this thing around. We'll get it done. Sure. So that's the that's the cash buffer. And then you know what I think we'll we'll we'll touch this at the end of the near the end here. Hec: Up for one year, you ask yourself, can we dig ourselves out of that hole? Can we go a year without making money? If the answer is yes, right, then the next question is, okay, well, we have a year to make money. Right. Right. And then you're like, all right, we can of course we can make a money in a year. Right. If we all are like doing this, yeah, we'll have a year to to turn this thing around. We'll get it done. So that's the that's the cash buffer. And then, you know, w think we'll we'll we'll touch this at the end of the near the end here. Gus: what to do with how you project out sales versus, you know, when you have a fixed income. Yeah. How to work backwards, the fifty, thirty, twenty rule. if you wanna go into it, it's the one kind of one the the more well known Hec: what to do with how you project out sales versus, you know, when you have a fixed income. Yeah. How to work backwards, the fifty, thirty, twenty rule. if you wanna go into it, it's the one kind of one the the more well known Gus: basics for personal financial finances. Yeah, I think so if you haven't heard of the fifty, thirty, twenty rule, it's in when budgeting and probably easier in salary, but both both salaried and commissioned and self employed people should know this. you should always account for your fifty percent for your needs, which is basically the the fixed income the the fixed Hec: basics for personal financial finances. Yeah, I think so if you haven't heard of the fifty, thirty, twenty rule, it's in when budgeting and probably easier in salary, but both both salaried and commissioned and self employed people should know this. you should always account for your fifty percent for your needs, which is basically the the fixed income the the fixed Gus: is it the fixed cost that you have in your life so your all your payments everything that you have to pay and need to pay to live the life that you want to live then the 30% is for your wants so that would include you know your trips your dinners your clothes your you know things that you know want to have in your life Hec: is it the fixed cost that you have in your life, so your all your payments, everything that you have to pay and need to pay to live the life that you want to live. Then the thirty percent is for your wants. So that would include, you know, your trips, your dinners, your clothes, your you know, things that you know you wanna have in your life. Gus: And then the twenty percent would be for saving and investing. And Hector and I were discussing this before starting the podcast where I in my head I think that once you and Hector you made a good point about people who are living with debt and taking care of that first before going into heavy savings and investing because then the return doesn't make sense. Right. You right? If you if what what did you say if you have like a twenty three percent Yeah, of sure, of of course. It's that's that's a great point. So we were talking about the allocation of the investment. Hec: And then the twenty percent would be for saving and investing. And Hector and I were discussing this before starting the podcast where I in my head I think that once you and Hector you made a good point about people who are living with debt and taking care of that first before going into heavy savings and investing because then the return doesn't make sense. Right. You right? If you if what what did you say if you have like a twenty three percent Yeah, of sure, of of course. It's that's that's a great point. So we were talking about the allocation of the investment. Gus: Investment, twenty percent. Yeah. Or saving twenty percent. Right. it's investing and saving, yeah. Investing and saving, right? Typically, you you can do ten percent saving and then help build that emergency fund and then ten percent towards investments. You buy something on Robinhood, right, which is an amazing app, or Fidelity. Yeah. if you want, you know, another brokerage account like that. Yeah. and just invest into the S P five hundred, invest that way ten percent, ten percent. But what happens if you're living with rollover credit card debt each month or you know, Hec: Investment, you know, 20%. Yeah. Or saving 20%. Right. Like it's investing and saving, yeah. Investing and saving, right? Typically, you know, you you can do 10% saving and then help build that emergency fund and then 10% towards investments. You buy something on Robinhood, right? Which is an amazing app, or Fidelity. Yeah. if you want you know another brokerage account like that. Yeah. just invest into the SP five hundred, invest that way, ten percent, ten percent. But what happens if you're living with rollover credit card debt each month or you know, Gus: retail store credit cards, the interest rates on those are twenty five percent, twenty seven percent. if you have an Amex, twenty five, twenty six percent APR and that that sucks, right? It's a very high interest rate. So if you're using the cash that you have to build up you know a a a small savings, of course that's great. Do it and let the debt carry over. But realize that when you're investing, you know, that ten percent that's left over at Hec: retail store credit cards, the interest rates on those are twenty five percent, twenty-seven percent. if you have an Amex, twenty five, twenty six percent APR and that that sucks, right? It's a very high interest rate. So if you're using the cash that you have to build up you know a a a small savings, of course that's great. Do it and let the debt carry over. But realize that when you're investing, you know, that ten percent that's left over at seven percent, eight percent, nine percent, it's really not worth it because the twenty three percent you're paying on credit cards is now creating a a negative ratio each month. So you're you're basically the delta between the two of them you're losing Gus: seven percent, eight percent, nine percent, it's really not worth it because the twenty three percent you're paying on credit cards is now creating a a negative ratio each month. So you're you're basically the delta between the two of them you're losing Hec: eighteen percent, right? Gus: eighteen percent right on interest each month because you're not paying the high credit high debt credit cards first. Right. Yeah, so then at that point, you know, if you're able to control your debt and your leverages d like you you you're able to get that ratio down, we would always recommend to take care of your debt before anything else. before thinking of investing in a high yield savings account and putting your money there or making four point two percent yeah, making four point two percent because you're ultimately still negative nine Hec: on interest each month because you're not paying the high credit high debt credit cards first. Right. Yeah, so then at that point, if you're able to control your debt and your leverages d like you you you're able to get that ratio down, we would always recommend to take care of your debt before anything else. before thinking of investing in a high yield savings account and putting your money there or making four point two percent yeah, making four point two percent because you're ultimately still negative nineteen Gus: nineteen percent. You know what I mean? Based on Hec: percent. You know what I mean? percentage depending on how much debt you have so Gus: percentage depending on how much debt you have. So Hec: one of the most important things is to to every American to to please just take care of the debt the debt right now in the United States is insane the definit the deficit as a country and individual personal debt is at an all-time high so most important if you have a debt and credit cards with high APRs take care of that first before really trying to narrow down on your savings and your investing. Yep. and then also once you do Gus: one of the most important things is to to every American to to please just take care of the debt. The debt right now in the United States is insane. The defit the deficit as a country and individual personal debt is at an all time high. So most important, if you have a debt and credit cards with high APRs, take care of that first before really trying to narrow down on your savings and your investing. Yep. and then also, once you do the Hec: The Riches, and maybe this is an old school thing, but my dad and maybe that generation of of people, they would consider that at least in your young years and you're working in product in your productive years, your thirties, your twenties, thirties, and forties, Gus: Riches and and maybe this is an old school thing, but my dad and maybe that generation of of people, they would consider that at least in your young years and you're working in product in your productive years, your thirties, your twenties, thirties and forties Hec: maybe it's okay sometimes to try to save and invest the fifty percent and then have your needs be the thirty percent and then your wants be the twenty. Sure. You see what I mean? Yeah, yeah, of course. Because at that point if you're okay. Gus: Maybe it's okay sometimes to, try to save and invest the fifty percent and then, have your needs be the thirty percent and then your wants be the twenty. Sure. You see what I mean? Yeah, yeah, of course. Because at that point, if you're okay Hec: okay with and Jim Carrey quotes this, he's like if you're not willing to look and behave Gus: with and Jim Carrey quotes this, he's like, if you're not willing to look and behave Hec: below your means for a period of time, then you care too much about what other people think of you. Right. Because you're you you should be okay with saving and investing if i let's say you're you're you're you don't have no debt every every month when you make your your income Gus: below your means for a period of time, then you care too much about what other people think of you. Right. Because you're you you should be okay with saving and investing if i let's say you're you're you're you don't have no debt. Every every month when you make your your income you can very easily have the fixed cost be the thirty percent and just have your wants be that twenty and just save half of your money or invest half your money like have twenty five percent for savings, twenty five percent for investing. The Hec: you can very easily have the fixed cost be the thirty percent and just have your wants be that twenty and just save half of your money or invest half your money like have twenty five percent for savings, twenty five percent for investing. The Gus: the speed at at as to which it would grow is completely i it'll change it'll change your whole trajectory in per in your own personal finances what I'm thinking. Yeah, absolutely. the the the power of compounding. That's right. The power of compounding, which another style had from Warren Buffett, he didn't make the like he made ninety five percent of his net worth at the age of sixty five and up. Mm-hmm. So that's crazy. And that's honestly how a lot of that generation used to think. Right. Like you save, save, save, buy by like buy your Hec: the speed at at as to which it would grow is completely i it'll change it'll change your whole trajectory in per in your own personal finances what I'm thinking. Yeah, absolutely. the the the power of compounding. That's right. The power of compounding, which another style had from Warren Buffett, he didn't make the like he made ninety five percent of his net worth at the age of sixty five and up. Mm-hmm. So that's crazy. And that's honestly how a lot of that generation used to think. Right. Like you save, save, save, buy by like buy your Gus: house invest now and you'll be rich later. Yeah that generation was just beastly. Beastly. But I do think that our generation understands that we don't have to wait to in to to enjoy our money. But you have to do it in a smart way. Yeah. You have to do it in a smart way or else Hec: house invest now and you'll be rich later. Yeah that generation was just beastly. Beastly. But I do think that our generation understands that we don't have to wait to in to to enjoy our money. But you have to do it in a smart way. Yeah. You have to do it in a smart way or else Gus: it can turn into a very, very difficult situation. personally, if you're not planning your future out like it's okay it's okay to do both. It's okay to enjoy your life now and still be smart about how you do it. You just have to know the numbers. Yeah to you'd have to know how much you spend and you have to know how much you're gonna make. Yeah, for sure. And I I think the easiest way to do that, right, is just to create a Google sheet. But like draw up a balance sheet for yourself. You know, write out all the accounts that you have. Hec: it can turn into a very, very difficult situation. personally, if you're not planning your future out like it's okay it's okay to do both. It's okay to enjoy your life now and still be smart about how you do it. You just have to know the numbers. Yeah to you'd have to know how much you spend and you have to know how much you're gonna make. Yeah, for sure. And I I think the easiest way to do that, right, is just to create a Google sheet. But like draw up a balance sheet for yourself. You know, write out all the accounts that you have. Gus: Whether it's it's you're the money coming in and or you know, other investments, whatever's coming in on one side and then on the other, write out all of your subscriptions, write all of your fixed costs, your upcoming obligations, any debt that you have. So you always get a real snapshot of what your financial position looks like. I think the most important thing to start with is just to know what it is. Yeah. Right. So that you can calculate, you know, what is your net worth? Are you, you know, are you currently living under debt or do you have some some Hec: Whether it's it's you're the money coming in and or you know, other investments, whatever's coming in on one side and then on the other, write out all of your subscriptions, write all of your fixed costs, your upcoming obligations, any debt that you have. So you always get a real snapshot of what your financial position looks like. I think the most important thing to start with is just to know what it is. Yeah. Right. So that you can calculate, you know, what is your net worth? Are you, you know, are you currently living under debt or do you have some some Gus: positive net worth that you can work with and potentially rebalance the the fifty, thirty, twenty for yourself. And then that's a that's a conversation that you can have with yourself. But you have to start with Hec: positive net worth that you can work with and potentially rebalance the the 50 30 20 for yourself and then that's a that's a conversation that you can have with yourself but you have to start with you know at least a Google Sheet origin financial is a great app that you know I've used Michael uses we tried using it you know for one of our other like side companies before as well to manage all the accounts because it uses plaid to help and we're not sponsored by any means. Not yet. not yet. Gus: you know at least a Google Sheet. Origin Financial is a great app that, you know, I've used. Michael uses. We tried using it, you know, for one of our other like side companies before as well to manage all the accounts. because it uses plaid to help and we're not sponsored by any means. Not yet. not yet. but it's just a really good tool that uses plaid to connect to basically all of your accounts. Bank of America, Chase, Robinhood, Fidelity, Hec: but it's just a really good tool that uses plaid to connect to basically all of your accounts. Bank of America, Chase, Robin Hood, Fidelity, Gus: Your retail credit cards if you have them, your auto loan, your mortgage, your IRA, your four one K, your HSA, all of them for your real estate investments. Pull everything into the app and let the AI do the digging so that you can have a real snapshot of what your cash flows look like projected on twelve months and it has like beautiful reporting, beautiful dashboards. I need to be sponsored by these people. Yeah. Yeah. You are you are selling it. Use my discount code. No, I don't have one. But Hec: Your retail credit cards if you have them, your auto loan, your mortgage, your IRA, your four one K, your HSA, all of them for your real estate investments. Pull everything into the app and let the AI do the digging so that you can have a real snapshot of what your cash flows look like projected on twelve months and it has like beautiful reporting, beautiful dashboards. I need to be sponsored by these people. Yeah. Yeah. You are you are selling it. Use my discount code. No, I don't have one. But Gus: It it's a it's a really good tool to basically start with a a baseline understanding, a baseline snapshot of what your financial position looks like. And then you could talk to an AI yeah about all of your accounts. Yeah. And it's it's one of those things very I I think Rocket Money has a a really good app too that shows you like all of your upcoming, recurring subscriptions. Yep. And then you could see that you've been paying for I don't know, two Netflix accounts or you know, two Disney plus or real or whatever, and you're like, I I'm spending all this money Hec: It it's a it's a really good tool to basically start with a a baseline understanding, a baseline snapshot of what your financial position looks like. And then you could talk to an AI yeah about all of your accounts. Yeah. And it's it's one of those things very I I think Rocket Money has a a really good app too that shows you like all of your upcoming, recurring subscriptions. Yep. And then you could see that you've been paying for I don't know, two Netflix accounts or you know, two Disney plus or real or whatever, and you're like, I I'm spending all this money Gus: People think they're spending eighty five dollars and reality it's two fifty and that's the reason why is you sign up for these things, you forget about it. You forget about it, you don't ever use it. Yeah, I think i I think Chad GPT just started a new system within Chad GPT called like Chat Financials or something where which, you know a topic for another day. Yeah. Yeah. Sure. And who No, I'm saying I've got something from Yeah, yeah, you do. Yeah, and it's funny because like, you know, a lot of times privacy's a huge thing for people when giving away like, have Chad GPT connected to your Bank of America is like Hec: People think they're spending eighty five dollars and reality it's two fifty and that's the reason why is you sign up for these things, you forget about it. You forget about it, you don't ever use it. Yeah, I think i I think Chad GPT just started a new system within Chad GPT called like Chat Financials or something where which, you know a topic for another day. Yeah. Yeah. Sure. And who No, I'm saying I've got something from Yeah, yeah, you do. Yeah, and it's funny because like, you know, a lot of times privacy's a huge thing for people when giving away like, have Chad GPT connected to your Bank of America is like Gus: Well it's not I I'm honestly not too comp too concerned about the the privacy aspect. I I understand that I should. It's the reliance on the model. Mm. It's these models are ha almost forcing us, encouraging us. They're giving us all away all these free things from a subsidized account that they have so that we rely on this AI more and more. Hec: Well it's not I I'm honestly not too comp too concerned about the the privacy aspect. I I understand that I should. It's the reliance on the model. Mm. It's these models are ha almost forcing us, encouraging us. They're giving us all away all these free things from a subsidized account that they have. Yeah. So that we rely on this AI more and more. Gus: But then they're gonna own all that data and we're gonna be basically bound to this model. And once the subscription prices go up, you're like, I don't know how to live my life without all the comforts and the simplicity that was brought to me by AI. So now I'm just gonna have to bear the price, the new price. Yeah, absolutely. They're doing that with finances, Chad GPT also, now they do it for health. You can tie your health app to Chad GPT and it'll give you like every you what I mean? It'll measure it and give you Really cool. Hec: But then they're gonna own all that data and we're gonna be basically bound to this model. And once the subscription prices go up, you're like, I don't know how to live my life without all the comforts and the simplicity that was brought to me by AI. So now I'm just gonna have to bear the price, the new price. Yeah, absolutely. They're doing that with finances, Chad GPT also, now they do it for health. You can tie your health app to Chad GPT and it'll give you like every you what I mean? It'll measure it and give you Really cool. Gus: That's no, but that's what I'm saying. But that goes to your point. So I think make sure that you're keeping track of how you are Hec: That's no, but that's what I'm saying. But that goes to your point. So I think make sure that you're keeping track of how you are Gus: What tools you're using for your finances. That's a that's an important part. And also be careful with the way that you're doing your finances and and investing because we talked about this a couple of weeks ago. Like the way Robinhood, for example, does their investment platform, they gamified investing. Yep. Right? Like a little confetti. Yeah, you you buy you buy a stock and it the horns starts sounding and confetti drops from the thing and you're like Hec: What tools you're using for your finances. That's a that's an important part. And also be careful with the way that you're doing your finances and and investing because we talked about this a couple of weeks ago. Like the way Robinhood, for example, does their investment platform, they gamified investing. Yep. Right? Like a little confetti. Yeah, you you buy you buy a stock and it the horns starts sounding and confetti drops from the thing and you're like Yeah, it just gamified it. It's kinda like a casino. Yep. And so you gotta remember that if you're not well versed in stock buying, right? Don't just go out and start buying a whole bunch of stocks thinking, you know, I'm I I Gus: Yeah, it just gamified it. It's kinda like a casino. Yep. And so you gotta remember that if you're not well versed in stock buying, right? Don't just go out and start buying a whole bunch of stocks thinking, you I'm I I know Hec: know that this much, I know this much about this company, and I have a Ford, let me invest in Ford, you and which Ford is a great company, but I'm just saying, like, just be careful Yeah, how you go about using these tools, to Gus: this much, I this much about this company. I I have a Ford, let me invest in Ford, you I'm and which Ford is a great company, but I'm just saying, just be careful Yeah. How about using these tools to access a better way of doing finances because you know, it it's not for everybody. So just test it out. That's all we're saying. We're not sponsored by anybody, so just do it your way. But I do like the way you said about that app. I do think that people should have a tool that keeps track of it. So that you're aware. Have a snapshot. Hec: access a better way of doing finances because it it's not for everybody. So just test it out. That's all we're saying. We're not sponsored by anybody, so just do it your way. But I do like the way you said about that app. I do think that people should have a tool that keeps track of it. So that you're aware have a snapshot. Have a snapshot. You have an understanding. If you're gonna spend or or save or whatever, know exactly to the to the cent to the last set what it is that you're making and what it is that you're spending. Mm-hmm. Yeah. Yeah, yeah. And that tool Gus: Have a snapshot. You have an understanding. If you're gonna spend or or save or whatever, know exactly to the to the cent to the last set what it is that you're making and what it is that you're spending. Yeah. Yeah, yeah. But that tool. Hec: Google Sheets even has like a a budget template that you can start with. I mean it's it's super simple but s I strongly encourage everybody to set one up for themselves and and get started right away. It's it's crucial. Cool man. Yeah. Yeah, I'm gonna ask you a question and you can take your time because Gus: Google Sheets even has like a a budget template that you can start with. I mean it's it's super simple, but s I strongly encourage everybody to set one up for themselves and and get started right away. It's it's crucial. Cool, man. Yeah. Yeah. I'm gonna ask you a question and you can take your time because 'Cause think I'm gonna catch you I think I'm gonna catch you a little bit off off guard here, but it's something that you'll probably be able to answer pretty quickly. Working in commercial real estate has put you in touch with being in the middle Hec: I think I'm gonna catch you I think I'm gonna catch you a little bit off of guard here, but it's something that you'll probably be able to answer pretty quickly. w working in commercial real estate has put you in touch with being in the middle Gus: of investing, transactions, Hec: of investing transactions, money management, capital deployment, capital markets, you're you're getting a a a glimpse at all these worlds, right? What would you say for you it's been like something pretty cool to learn that people can apply to the personal finances based on like what you've seen investors do, how they analyze a deal, how they budget for a deal, how they use leverage and debt to to buy something and how they think about IRRs, you know, just things like that. Just simply just simple to very loaded question. It is a very loaded question. Gus: Money management, capital deployment, capital markets, you're you're getting a a a glimpse at all these worlds, right? What would you say for you it's been like something pretty cool to learn that people can apply to the personal finances based on like what you've seen investors do, how they analyze a deal, how they budget for a deal, how they use leverage and debt to to buy something and how they think about IRRs, you know, just things like that. Just simply just simple to very loaded question. It is a very loaded question. Hec: No, but simply put what yeah, just simply put what what have you learned from investors on how they manage their money or how they deploy their capital and and what would be something that you would recommend just in personal finances, one thing that I think about is the the leverage thing. I love how a lot of people the normal Gus: No, it's Yeah, just simply put like what what have you learned from investors on how they manage their money or how they deploy their capital and and what would be something that you would recommend, like, you know, just in personal finances, like one thing that I think about is the the leverage thing. I love how like a lot of people the normal community of human beings see debt and they they see it as a really negative thing. You see what I mean? Sure. Yeah, yeah. I mean debt should should really only be used when it's as a tool. Right. Right. And you need leverage sure to get that thing done a little bit more easily or at at a higher profit to you and your investors. Right. So that I think that's that's a great point. Yeah. so leverage can can always work for you but in bad times it'll work against you very, very quickly. Very quickly. And the banks win. So Hec: community of human beings see debt and they they see it as a really negative thing. You see what I mean? Sure. Yeah, yeah. I mean debt should should really only be used when it's as a tool. Right. Right. And you need leverage sure to get that thing done a little bit more easily or at at a higher profit to you and your investors. Right. So that I think that's that's a great point. Yeah. so leverage can can always work for you but in bad times it'll work against you very, very quickly. Very quickly. And the banks win. So Gus: but but I don't know. What I've learned is that I think money follows good stories. And I think Hec: but but I don't know. What I've learned is that I think money follows good stories. And I think Gus: That investors are constantly trying to mitigate risk. And in order to do that, you have to be a very good storyteller. And what happens when you tell a good story? You have to be able to hit all the key elements that comprise a good story. What are the conflicts? What are the what's the rising action? What's the climax? What's our resolution? Right? Like the same thing goes with an investment. What's the work that we're gonna have to put in? You know, delineate that by the different expense lines, you create a budget for it. the rising action, when we start marketing this, this is the kind of traction we're gonna get. Hec: That investors are constantly trying to mitigate risk. And in order to do that, you have to be a very good storyteller. And what happens when you tell a good story? You have to be able to hit all the key elements that comprise a good story. What are the conflicts? What are the what's the rising action? What's the climax? What's our resolution? Right? Like the same thing goes with an investment. What's the work that we're gonna have to put in? You know, delineate that by the different expense lines, you create a budget for it. the rising action, when we start marketing this, this is the kind of traction we're gonna get. Gus: get from different institutional investors, private money, banks, other lenders, et cetera. Hec: different institutional investors, private money, banks, other lenders, et cetera. And then the climax when you sell or when you get to the the final stabilization period of the prime of the property, what's that gonna look like? And then the resolution when everybody gets their money back and everybody's happy and then life goes on the way it was. And so you tell that story over and over again to your investors, to your lenders, to your partners and you get better at it. And you get to use that same formula to create value using money, both equity and then, you know, with Gus: And then the climax when you sell or when you get to the the final stabilization period of the prime of the property, what's that gonna look like? And then the resolution when everybody gets their money back and everybody's happy and then life goes on the way it was. And so you tell that story over and over again to your investors, to your lenders, to your partners, and you get better at it. And you get to use that same formula to create value using money, both equity and then you know, with on the on the debt side, combining those to create a really good story is is what I've Hec: on the on the debt side, combining those to create a really good story is is what I've Gus: learned is integral sure to investment. Sure. So then in personal like for people who are just individuals with their salaries and their careers and their money, right? Hec: learned is integral to investment. Sure. So then in personal like for people who are just individuals with their salaries and their careers and their money, right? Gus: what I'm hearing i that could be a good thing is to paint the story that you want. what w how do you see it? how do you see the rising action and the climax and what does that look like to you? And understanding that might make it easier for people than to just follow the numbers, right? Follow the spreadsheets. Like it's 'cause for a lot of people I think what's scary about personal finances is the the the actual numbers of it. Like the actual data. Yeah, yeah. And you what I overcom. Hec: what I'm hearing i that could be a good thing is to paint the story that you want. what w how do you see it? how do you see the rising action and the climax and what does that look like to you? And understanding that might make it easier for people than to just follow the numbers, right? Follow the spreadsheets. Like it's 'cause for a lot of people I think what's scary about personal finances is the the the actual numbers of it. Like the actual data. Yeah, yeah. And you know what I overcomplicated Gus: Earlier when I said go get a Google sheet. Just talk to Gemini. Just talk to Hec: earlier when I said go get a Google sheet. Just talk to Gemini. Just talk to God. Talk to Claude's what I'm gonna say. Claude Set up a Claude, have it create a a spreadsheet for you. Tell it, you know, I'm making this much, I've got this much in savings, these are all my expenses, you know, come up with a budget and how can I save a little bit more money so that I can build this six month cash runway, this yeah, this buffer. Sure. and how and then I could eventually start investing. What should I start investing? Which ETFs make sense? And Claude for the most part is gonna Gus: Claude. Talk to Claude. Yeah. Set up a Claude, have it create a spreadsheet for you. Tell it, you know, I'm making this much. Yep. I've got this much in savings. Yep. These are all my expenses. You know, come up with a budget and how can I save a little bit more money so that I can build this six month cash runway, this yeah, this buffer. Sure. and how and then I could eventually start investing. What should I start investing? Which ETFs make sense? And Claude for the most part is gonna Hec: give you a pretty good answer and a pretty s and this isn't financial advice. Gus: give you a pretty good answer on a pretty saving this isn't financial advice by any by any means. None of this is. No, none of this. We're not licensed. We're not licensed. Or what's the word? we're not even we're not licensed or yeah well you know what it's funny because we we ultimately do deal with capital Hec: By any means. None of this is. No, none of this. We're not licensed. We're not license or what's the word? we're not even we're not licensed or yeah, well you know what? It's funny because we we ultimately do deal with capital Gus: in various ways in our daily day to day jobs. But it's true nowadays with AI, what you c what you're able to do the first thing you gotta get over, people, is how like the the the fear of having all these numbers in front of you and not really knowing how to how to Hec: in various ways in our daily day to day jobs. But it's true nowadays with AI, what you c what you're able to do the first thing you gotta get over, people, is how like the the the fear of having all these numbers in front of you and not really knowing how to how to Gus: Analyze them. That's I think that's one of the big people's biggest fear. I'm not a accounting major, I'm not a finance major, like what am I gonna do? typing in all my expenses and debt and and and income you know what I mean? And that's that's the first thing that I think people should get over. It's just like it's easier than people think. dude. Download Whisperflow and with the language button on your Mac or I don't know Hec: Analyze them. That's I think that's one of the big people's biggest fear. I'm not a accounting major, I'm not a finance major, like what am I gonna do? typing in all my expenses and debt and and and income you know what I mean? And that's that's the first thing that I think people should get over. It's just like it's easier than people think. dude. Download Whisperflow and with the language button on your Mac or I don't know Gus: what button it is on on PC. No you don't know about PC. No I don't all I'm brand new. go to Claude or Chad GPT or Gemini, whatever model. Even Muse by the way is catching up. They're crushing it. Yep. Hec: what button it is on on PC. No you don't know about PC. No I don't all I'm brand new. go to Claude or Chad GPT or Gemini, whatever model. Even Muse by the way is catching up. They're crushing it. Yep. and just start talking to it. Yeah. a normal you don't you could use the voice app from before, but this one is just so good in how it structures your sentences, your bullet points, remembering your your language or the the way that you speak your dictation moving forward. Gus: And just start talking to it. Yeah. a normal you don't you could use the voice app from before, but this one is just so good in how it structures your sentences, your bullet points, remembering your your language or the the way that you speak your dictation moving forward. and just have it talk it through the story. Right. How much am I making? How much am I spending? What are my goals? How do I get there? Yep. Yeah, WhisperFlow, you talk to your computer, you talk to your AI and it'll capture everything and then all all it does is just you just press enter and Claude, Chat GPT, Gemini, whatever. Mm-hmm. It has it in front of you. and it'll create an you can even have it do it visually for people who don't really like to see just boring spreadsheets. Yeah. It'll create a visual for you if you like. that's the first fear and I think the other fear is like Hec: and just have it talk it through the story. Right. How much am I making? How much am I spending? What are my goals? How do I get there? Yep. Yeah, WhisperFlow, you talk to your computer, you talk to your AI and it'll capture everything and then all all it does is just you just press enter and Claude, Chat GPT, Gemini, whatever. Mm-hmm. It has it in front of you. and it'll create an you can even have it do it visually for people who don't really like to see just boring spreadsheets. Yeah. It'll create a visual for you if you like. that's the first fear and I think the other fear is like Gus: How d this was my fear I would say, how disappointed I would be on my in myself once I literally got all the the expenses I have in front of me and I and I was scared that I would be like, my god, dude. Like I when you actually see the truth. Yeah, when you see the truth of your finances. Yeah, when you think you've got eighty six dollars worth of subscriptions and in reality it's three hundred bucks. Like, my god, what is going on? My subscrip my subscriptions are out of control for sure. Yeah. I don't know what the number is, but I Hec: How d this was my fear I would say, how disappointed I would be on my in myself once I literally got all the the expenses I have in front of me and I and I was scared that I would be like, my god, dude. Like I when you actually see the truth Yeah, when you see the truth of your finances. Yeah, when you think you've got eighty six dollars worth of subscriptions and in reality it's three hundred bucks. Like, my God, what is going on? My subscrip my subscriptions are out of control for sure. Yeah. I don't know what the number is, but I Gus: I have a ton of subscriptions, especially AI subscriptions that I don't use or I don't need. but it is always cool to like test the the latest and greatest stuff. But yeah. But yeah, I understand what you're saying. It's like facing that truth. Yeah, facing the truth. Of this is the the actual reality. I've got four hundred dollars worth of subscriptions that I half half of them I don't even use. Like that's you gotta be prepared to face that reality, yeah. For sure, for sure. And so I think a good Hec: I have a ton of subscriptions, especially AI subscriptions that I don't use or I don't need. but it is always cool to like test the the latest and greatest stuff. But yeah. But yeah, I understand what you're saying. It's like facing that truth. Yeah, facing the truth. Of this is the the actual reality. I've got four hundred dollars worth of subscriptions that I half half of them I don't even use. Like that's you gotta be prepared to face that reality, yeah. For sure, for sure. And so I think a good Gus: point to talk about I think towards this part of the episode. Hec: Point to talk about, I think, towards this part of the episode is one that we discussed when we were first preparing for it, which is the internal versus the external psychology of money. Sure, right? So there's a s there's certain motivations that bring about the way people discuss their personal finances, and I think one of the biggest mental stimulators stimulators of your money and making money. Gus: is one that we discussed when we were first preparing for it, which is the internal versus the external psychology of money. Sure, right? So there's a s there's certain motivations that bring about the way people discuss their personal finances. And I think one of the biggest mental stimul stimulators of your money and making more Hec: more and and is it's these two different Gus: and and is it's these two different Hec: motivators. So there's the external one, which we can talk about, which is like I want people to perceive me. So this is all about status, by the way. This is something that I've come to realize, especially in our world. There's the external versus the internal motivation of of money. The external being, I want people to see me be successful. I want them to see me in the nice car. I want them to see me in a nice house. I want people to know that I've made it. Sure. But then there's the also the internal validation you go through with money, which is I want to prove mys to myself that all this hard work is paying off. Gus: So there's the external one, which we can talk about, which is like I want people to perceive me. So this is all about status, by the way. This is something that I've come to realize, especially in our world. There's the external versus the internal motivation of of money. The external being, I want people to see me be successful. I want them to see me in the nice car. I want them to see me in a nice house. I want people to know that I've made it. Sure. But then there's the also the internal validation you go through with money, which is I want to prove mys to myself that all this hard work is paying off. and that I can't afford this nice house, this nice car and whatnot. And so like one of the anecdotes that I remember that my my father told me was when he made it to Congress. Yeah, that's a good story. Yeah, he made it to Congress and all his friends, all his senator friends were Hec: and that I can't afford this nice house, this nice car and whatnot. And so like one of the anecdotes that I remember that my f my father told me was when he made it to Congress. Yeah, that's a good story. Yeah, he made it to Congress and all his friends, all his senator friends were Gus: just sitting in the in the lobby of of of the Capitol building and one of them just pulled out their their jack their suit jacket and it's like, I'm wearing Versace, And then the other guy's like, I'm wearing Armani and then you and then Hec: just sitting in the in the lobby of of of the Capitol building and, one of them just pulled out their their jack their suit jacket and it's like, I'm wearing Versace, And then the other guy's like, I'm wearing Armani and then you and then Gus: they finally got to my dad and my dad's like, nah, nah, chill. Chill chill fellas. And then they're like, nah, let's see, let's see, let's see it so when he pulled it out, all he had was a the dry clean ticket that he after he took a dry cleaning. Yeah. No label, nothing. But my dad was on a different mindset and and at his time he was trying to Hec: finally got to my dad about it. It's like, nah, nah, chill. Chill chill fellas. And then they're nah, let's see, let's see, let's see. It's a way he pulled it out. All he had was a the dry clean ticket that he after he took a dry cleaning. Yeah. No label, nothing. But my dad was on a different mindset and and at his time he was trying to Gus: develop use all all his money to buy investment properties and and planting. Planting seeds. Planting seeds. He alwa he always says he quotes I think it's Warren Buffett, but he always says that he's like in your twenties, thirties and forties, you're planting seeds. You're not reaping the fruit Hec: develop use all all his money to buy investment properties. Planting. Planting seeds. Planting seeds. He alwa he always says he quotes I think it's Warren Buffett but he always says that he's like in your twenties, thirties and forties you're planting seeds. You're not reaping the fruit Yet, you know? You're planting the seeds, planting the seeds, planting the seeds. And a lot of people try to plant a seed and when it's at its weakest point they try to move, they try to use it, try to use it. And that's something that I feel like it's interesting because a lot of times it's that external proving myself to people and it's also that Gus: yet. You're planting the seeds, planting the seeds, planting the seeds. And a lot of people try to plant a seed and when it's at his weakest point they try to move. They try to use it. They try to use it. And that's something that I feel like it's interesting because a lot of times it's that external proving myself to people. And it's also that Hec: internal proving it to myself. Mm-hmm. You know? Yeah. And I know you had a good story. I remember we talked about when you first got into commercial real estate, how it was the to be sitting at a table. Gus: internal proving it to myself. Mm-hmm. Yeah. And I know you had a good story. I remember we talked about when you first got into commercial real estate, how it was the to be sitting at a table Hec: with with the big boys. Yeah. You can't as a young guy. You can't Gus: with with the big boys. Yeah. You can't as a young guy. You can't Hec: you can't sit or hang with the cli like you're all of our clients are for the most part wealthy institutional guys. They make good money. Yep. And, you know, when you're starting off, right, like you want to hang. You want to be a part of that group. And sometimes, right, when the check comes out, like it feels good to like to pay. Yeah. But most most of the time at the time, or mo for most of them, none of it meant Gus: you can't sit or hang with the cli like you're all of our clients are for the most part wealthy institutional guys. They make good money. Yep. And, you know, when you're starting off, right, like you want to hang. You want to be a part of that group. And sometimes right when the check comes out, like it feels good to like to pay. Yeah. But most most of the time at the time, or mo for most of them, none of it meant much to these guys, right? Or their company was paying. Sure. for me I'm self basically self employed. All of this actually comes out of my pocket. Right. Hec: much to these guys, right? Or their company was paying. Sure. for me I'm self basically self employed. All this actually comes out of my pocket. Right. And, you know, it's a it's a hard lesson that you learn over time. It's like th it doesn't matter if I pay or not, they probably care less about paying than I do. But so it's you know, there's no reason to actually even like play that game. Right. So li live below your means is the was the theme of that, the the takeaway. Yeah, live below your means. I think sometimes we try to show up. and I think when you're first growing and building, I think Gus: And you know, it's a it's a hard lesson that you learn over time. It's like d it doesn't matter if I pay or not, they probably care less about paying than I do. But so it's you know, there's no reason to actually even like play that game. Right. So live live below your means is the was the theme of that, the the takeaway. Yeah, live below your means. I think sometimes we try to show out. and I think when you're first growing and building, I think Hec: most wealthy people, most established successful people will understand that more than you think. I think they'll they'll they Gus: most wealthy people, most established successful people will understand that more than you think. Mm-hmm. I think they'll they'll they know where you're at in your career and they'll be more than happy to not only pay for things or whatever, which is not what we're saying. We you don't have to ask them to, but give you advice. Sure. Give you advice. Walk you through how they did it. I I'm sure a lot of them went through periods of years where they're just living way below their means, saving up if if they own their own businesses, which a lot of our guys do, you know, Hec: know where you're at in your career and they'll be more than happy to not only, you know, pay for things or whatever, which is not what we're saying. We you don't have to ask them to, but give you advice. Sure. Give you advice, walk you through how they did it. I I'm sure a lot of them went through periods of years where they're just living way below their means, saving up if they own their own businesses, which a lot of our guys do, you know Gus: saving putting everything back into the business, putting everything back into the business. And so like I think that Hec: saving you putting everything back into the business, putting everything back into the business. And so I think that it's something that a lot of people have to work through. When dealing with your personal finances, understanding your snapshot like we're saying. And also understanding your psychology, your motivator. why should I care so much about how what car I drive at this point in my life? Right? what what house I live in at this point in my life. When I'm still just planting seeds, man. I'm still just trying to Gus: It's something that a lot of people have to work through. When dealing with your personal finances, understanding your snapshot like we're saying. And also understanding your psychology, your motivator. why should I care so much about how what car I drive at this point in my life? Right? what what house I live in at this point in my life. When I'm still just planting seeds, man. I'm still just trying to understand the best way to make the money and then save and invest that money. Yeah. For sure. It's it's a different game, man, and I think that that's a hard game. It's a hard game. My my mom always said it's hard enough to make a dollar but ultimately it's pretty easy. Yeah, yeah, yeah. But it's harder to keep a dollar. Like that's where the true sophistication and maturity comes from is knowing how to keep what it is that you make. Right. Yeah I Hec: understand the best way to make the money and then save and invest that money. Yeah. For sure. It's it's a different game, man, and I think that that's a hard game. It's a hard game. My my mom always said it's hard enough to make a dollar but ultimately it's pretty easy. Yeah, yeah, yeah. But it's harder to keep a dollar. Like that's where the true sophistication and maturity comes from is knowing how to keep what it is that you make. Right. Yeah I Gus: think our generation is a little bit floshier, would you say, than than the previous generations? Sure. Back in the day it was just work hard, have your house, have your car, but I feel like nowadays and this is another thing that goes into what we're saying as as far as your personal finances. When you're analyzing your personal finances, how much of it is it the real utility? The yeah. Do you think Hec: think our generation is a little bit floshier, would you say, than than the previous generations? Sure. Back in the day it was just work hard, have your house, have your car, but I feel like nowadays and this is another thing that goes into what we're saying as as far as your personal finances. When you're analyzing your personal finances, how much of it is it the real utility? The yeah. Do you think And I'll ask you that I'll answer as well, but do you think comparison is also one of those things that comes into play when it comes to your finances, when you're when it comes to spending? I think that generationally, when we compare, the the boomers which were almost siloed in their own communities and i it was kind of a smaller sense comparison in that you were living in this community and there was a few people that made some money, but most of them were probably a little bit older or whatever. Yeah. they were all Gus: generationally when we compare, the the boomers which were almost siloed in their own communities. And it was kind of a smaller sense of comparison in that you were living in this community and there was a few people that made some money, but most of them were probably a little bit older or whatever. Yeah. they were all around the same but mostly siloed. Yeah. And now these newer generations, you know, the the millennials, the Gen Z, and the newer generation alpha, I think. Hec: the same but mostly siloed. Yeah. And now these newer generations, the the millennials, the Gen Z, and the newer generation Alpha, I think. Generation Alpha, they see everything in real time and the wealthiest of their age on their algorithm. Yeah. Gus: Generation Alpha, they see everything in real time and the wealthiest of their age on their algorithm. Yeah. Hec: Constantly. And so they're seeing other fifteen, sixteen, eighteen year olds that are the top point one percent in their silos in some other part of the world and they think, I need to be like that. Right. And then that pressure to be there now creates anxiety and that anxiety creates mental fog and then you know, creates a a difficult environment for you to be able to focus and just master the fundamentals like we've talked about. Right. You know, saving, understanding what you're gonna make, projecting out, investing. Yeah. and you know, being smart about how you save. Gus: Constantly. And so they're seeing other fifteen, sixteen, eighteen year olds that are the top point one percent in their silos in some other part of the world and they think, I need to be like that. Right. And then that pressure to be there now creates anxiety. And that anxiety creates mental fog and then you know creates a a difficult environment for you to be able to focus and just master the fundamentals like we've talked about. Right. You know, saving, understanding what you're gonna make, projecting out, investing. Yeah. and you know, being smart about how you save. Right. I love that. I love that because that's what I was thinking about. Like our Hec: Right. I love that. I love that because that's what I was thinking about. Like our Gus: the compare before you used to compare yourself to your neighbors. And if they were your neighbors, they probably made an on average as much as you did. Mm-hmm. Right? And somebody probably got a raise at the factory or at the plant and so the mill. Yeah. And like so their house looked probably just like your house, probably like the the house next door and probably two two streets down. The house were probably very similar. But now not only are you comparing yourself to the same people in your community, but it's the same people in your city, in your state, in the country, in the world Hec: the compare before you used to compare yourself to your neighbors. And if they were your neighbors, they probably made an on average as much as you did. Mm-hmm. Right? And somebody probably got a raise at the factory or at the plant and so the mill. Yeah. And like so their house looked probably just like your house, probably like the the house next door and probably two two streets down. The house were probably very similar. But now not only are you comparing yourself to the same people in your community, but it's the same people in your city, in your state, in the country, in the world Gus: work and at the same time you're seeing a twenty four year old driving a Lambo and you're like, damn, like I need to I need to get a Lambo myself or I need to you know and it's okay to strive for that. Yeah. But it's not okay to put yourself in very difficult financial situations to look like you have it. Right. To achieve that. Because if you're if that person is spending one percent of its monthly revenue on a Lambo and you're spending fifty percent of your monthly revenue on a Lambo. It's a completely different situation. Hec: work and at the same time you're seeing a twenty four year old driving a Lambo and you're like, damn, like I need to I need to get a Lambo myself or I need to you know and it's okay to strive for that. Yeah. But it's not okay to put yourself in very difficult financial situations to look like you have it. Right. To achieve that. Because if you're if that person is spending one percent of its monthly revenue on a Lambo and you're spending fifty percent of your monthly revenue on a Lambo. It's a completely different situation. Gus: story. You're you're not painting the right story. So that's something that I wanted to touch on because I think not only should we discuss all the tips and tricks of personal finances, but we should also discuss the psychology of what makes people do good things or bad things. You really think it was that different though? like yes, social media is very prevalent, but as as we talk about it more I'm like I mean they also had T V and newspapers and whatever. But maybe that was still siloed in a sense. Yeah, I mean what? So they saw a commercial Hec: story. You're you're not painting the right story. So that's something that I wanted to touch on because I think not only should we discuss all the tips and tricks of personal finances, but we should also discuss the psychology of what makes people do good things or bad things. You really think it was that different though? like yes, social media is very prevalent, but as as we talk about it more I'm like I mean they also had T V and newspapers and whatever. But maybe that was still siloed in a sense. Yeah, I mean what? So they saw a commercial Gus: A for of a Ford Mustang back in the sixties and the guy's really cool driving this Mustang on TV and young and hip and they're like, man, I want that Mustang. But probably what they did was they worked really hard, they saved up, and eventually a couple years later they got a Mustang. Dude, marketing never changes, dude. It's the same fundamental rules. That's right. But but how often are we getting marketed to now? And how easy is it to market? And now it's not even Ford that's marketing the Mustang, is some influence. And it's our peers and alike. Hec: A for of a Ford Mustang back in the sixties and the guy's really cool driving this Mustang on TV and young and hip and they're like, man, I want that Mustang. But probably what they did was they worked really hard, they saved up, and eventually a couple years later they got a Mustang. Dude, marketing never changes, dude. It's the same fundamental rules. That's right. But but how often are we getting marketed to now? And how easy is it to market? And now it's not even Ford that's marketing the Mustang, is some influence. And it's our peers and alike. Gus: Yeah, and it's like our the fr one of the worst things is like the fact that my dad tells me like, I don't know what I had this friend in high school, wow, like haven't seen him since high school, haven't seen kind of you know what I mean? Nowadays you've kept up with if you have Instagram or Facebook, you know where everybody's life is at at this point. Mm-hmm. You see what I mean? Yep. So I think comparison now even to your own classroom peers is completely different than it was back then because now I think you're dude, like Hec: Yeah, and it's like our the fr one of the worst things is like the fact that my dad tells me like, I don't know what I had this friend in high school, wow, like haven't seen him since high school, haven't seen kind of you know what I mean? Nowadays you've kept up with if you have Instagram or Facebook, you know where everybody's life is at at this point. Mm-hmm. You see what I mean? Yep. So I think comparison now even to your own classroom peers is completely different than it was back then because now I think you're dude, like Gus: John has a Corvette. Hec: John has a Corvette. Gus: John has a Hummer. Or you know what I mean? Or this or Argy has a a Mercedes. That's awesome. Like you know what I mean? Like they're my age. Like how are they doing that? You know what I mean? And then so there could be a certain psych s a psychological a psychological effect on your own brain. Hec: John has a Hummer or you know what I mean? Or this or Artie has a a Mercedes. That's awesome. Like you know what I mean? Like they're my age. Like how are they doing that? You know what I mean? And then so there could be a certain psych s a psychological a psychological effect on your own brain when it comes to, no man, I gotta get a Mercedes so I can also be like them or or I can look like I'm doing as good as they are or better. It's the maturity of living living within your means. Having that understanding early on. Sure. So I Gus: comes to no man, I gotta get a Mercedes so I can also be like them or or I can look like I'm doing as good as they are or better. It's the maturity of living living within your means. Having that understanding yeah early on. Sure. So I think ultimately I think this was good. Hec: think ultimately I think this was good good way of explaining the basics of personal finance. Yeah. Do you have what do you think? What what what is there a point that I think or do you think that we should touch on as far as like the strategy or how to You know, I I think Gus: good way of explaining the basics of personal finance. Yeah. Do you have what do you think? What what what is there a point that I think or do you think that we should touch on as far as like the strategy or how to you know I I think I think for for the most part creating a found I mean we touched on a lot of things right we touched on on taxes estimating what you're gonna make or understanding what you make understanding what you spend understanding what's left over and what to do Hec: I think for for the most part, creating a found I mean, we touched on a lot of things, right? We touched on on taxes, estimating what you're gonna make or understanding what you make, understanding what you spend, understanding what's left over and what to do Gus: with it. Hec: with it. Gus: I think in as this series progresses we can you know talk more specifically about investing or different tax strategies, whether you're W 2 or 1099. We can talk about the different real estate investments out what you know what real estate private equity looks like, what you know what stock investment looks like or ETFs or whatever, what Hec: I think in a as this series progresses we can, you know, talk more specifically about investing or different tax strategies, whether you're W two or ten ninety nine. we can talk about the different real estate investments out what you what real estate private equity looks like, what you know, what stock investment looks like, right or ETFs or whatever, what Gus: retirement investing looks like and what the different accounts are, what the different options are. And we could bring in you know respective Hec: retirement investing looks like and what the different accounts are, what the different options are. and we could bring in, you know, respective Gus: voices in each of those categories as we build, you know, this this series out and get deeper into those tangents. Absolutely. I think one point, and I'm not sure if we probably shouldn't touch up on it this time, but it's a good episode to have, it's the topic of financial freedom. Mm-hmm. And what that looks like to because financial freedom looks completely different to me, to you, sure. And to everybody else. And I think Hec: voices in each of those categories as we build, you know, this this series out and get deeper into those tangents. Absolutely. I think one point and I'm not sure if we probably shouldn't touch up on it this time, but it's a good episode to have, it's the topic of financial freedom. Mm-hmm. And what that looks like to because financial freedom looks completely different to me, to you. Sure. And I think Gus: It's a topic that we would have grazed over in this episode. Mm-hmm but I think it's something that people should think about. It's like what is finan what do you mean by financial freedom? What does that mean to you? Is that a number? Is that an age? And and and what would it what would you do with that freedom? Yeah. See what I mean? What does your day look like? What does your day look like? And we'll talk about that. And I think that that's a whole episode on its own. Sure. I think it should stand on its own. and I think that whether it's it's something that you have Hec: It's a topic that we would have grazed over in this episode. Mm-hmm but I think it's something that people should think about. It's like what is finan what do you mean by financial freedom? What does that mean to you? Is that a number? Is that an age? And and and what would it what would you do with that freedom? Yeah. See what I mean? What does your day look like? What does your day look like? And we'll talk about that. And I think that that's a whole episode on its own. Sure. I think it should stand on its own. and I think that whether it's it's something that you have Gus: in mind as a goal whether that's a number okay at a million dollars and actually if you can go to one of the data points that I wanted to touch on on where it says money story if you click on the money story. Talks about what people need to retire. Hec: in mind as a goal whether that's a number okay at a million dollars and actually if you can go to one of the data points that I wanted to touch on on where it says money story if you click on the money story. Talks about what people need to retire. Gus: Yeah, so it says Americans and this is from Charles Schwab. It says Americans say you need in twenty sixteen in twenty twenty six Jesus Americans say you need two point three million dollars to be wealthy. Hec: Yeah, so it says Americans and this is from Charles Schwab. It says Americans say you need in twenty sixteen in twenty twenty six, Jesus. Americans say you need two point three million dollars to be wealthy. Gus: And comparatively the median family has two hundred and sixteen thousand saved up. So that that just goes to show that a lot of Americans are not where they think they need to be when it comes to retiring and and having a a wealthy net worth. And what's the other one, Hector? The hundred and eight eight hundred and thirty nine thousand? So that one is you know, what what does comfortable look like? When you said financial freedom, this is the stat that I thought of too. Okay. It's in order Hec: And comparatively the median family has two hundred and sixteen thousand saved up. So that that just goes to show that a lot of Americans are not where they think they need to be when it comes to retiring and and having a a wealthy net worth. And what's the other one, Hector? The hundred and eight eight hundred and thirty nine thousand? So that one is you know, what what does comfortable look like? When you said financial freedom, this is the stat that I thought of too. Okay. It's in order Gus: to be according to Schwab again, yeah, the number that is financially comfortable in the United States is eight hundred and thirty nine thousand in terms of net worth and that number in just one year has gone up to gone up by sixty one thousand wow and a year for the year and it continues to go up. So when you think about what financial freedom looks like and then we tie that back into why it's important to invest in the power of compounding that number, that goalpost is gonna continue to change. And it's gonna continue to get Hec: to be according to Schwab again, yeah, the number that is financially comfortable in the United States is eight hundred and thirty nine thousand in terms of net worth and that number in just one year has gone up to gone up by sixty one thousand wow and a year for the year and it continues to go up. So when you think about what financial freedom looks like and then we tie that back into why it's important to invest in the power of compounding that number, that goalpost is gonna continue to change. And it's gonna continue to get Gus: a little bit farther and less achievable. So if you can strategize your plan early on so that you're focusing on the right investment activities to stay ahead of that at the beginning of your journey, then you're gonna keep up with the rate of change that that goalposts is moving. Yeah, dude, because if you were starting to work in nineteen ninety five, nineteen ninety six, and you thought, okay, a million dollars and I'll be able to retire by the time you retired in twenty twenty six, that million dollars is probably not the post you want to have. Right. Hec: a little bit farther and less achievable. So if you can strategize your plan early on so that you're focusing on the right investment activities to stay ahead of that at the beginning of your journey, then you're gonna keep up with the rate of change that that goalposts is moving. Yeah, dude, because if you were starting to work in nineteen ninety five, nineteen ninety six, and you thought, okay, a million dollars and I'll be able to retire by the time you retired in twenty twenty six, that million dollars is probably not the post you want to have. Right. Gus: So that's actually really interesting stat. so to be financially comfortable, eight hundred and forty thousand, that seems reasonable, but maybe by the time Hector and I are retiring, that number will be completely unreasonable. And that's something to keep in mind whenever dealing with personal finances, understanding your your your fine your goals for financial freedom. Yeah, absolutely. We'll link some of these some of these stats in the newsletter. Sure which you know we've got our newsletter up and running. Super excited about that. thank you guys so much for the support. Hec: So that's actually really interesting stat. so to be financially comfortable, eight hundred and forty thousand, that seems reasonable, but maybe by the time Hector and I are retiring, that number will be completely unreasonable. And that's something to keep in mind whenever dealing with personal finances, understanding your your your fine your goals for financial freedom. Yeah, absolutely. We'll link some of these some of these stats in the newsletter. Sure which you know we've got our newsletter up and running. Super excited about that. thank you guys so much for the support. Gus: We have we've been getting a lot of traction from overseas. Yep. Puerto Rico, Colombia, Argentina. it's been great. We're on track to get our our thousand views. So we're super happy about that. Please like, subscribe, comment on the channel. It helps us grow and and helps us support what we're doing. And you know, hopefully you got some value out of it and and are are really understanding what it is to be you know financially free or have a better lifestyle or healthy, all the things that we love to talk about on the podcast continuously. So really appreciate it. Hec: We have we've been getting a lot of traction from overseas. Yep. Puerto Rico, Colombia, Argentina. it's been great. We're on track to get our our thousand views. So we're super happy about that. Please like, subscribe, comment on the channel. It helps us grow and and helps us support what we're doing. And you know, hopefully you got some value out of it and and are are really understanding what it is to be you know financially free or have a better lifestyle or healthy, all the things that we love to talk about on the podcast continuously. So really appreciate it. all the support and you know we hope to keep doing this week after week. Week after week. also if you go to our website thegrowth trip.com Gus: And you know, we hope to keep doing this week after week, week after week. also if you go to our website, thegrowthtrip.com. Hec: is it thegrowth trip.com we we have a way for you to subscribe to our newsletter which we touch on summaries of topics we've touched up on any article book data set that we like and recommend we'll put it in that newsletter it's a quick one to two pager and it'll show up to your inbox every week and Gus: Is it the GrowthRib dot com. We we have a way for you to subscribe to our newsletter, which we touch on summaries of topics we've touched up on. any article, book, d data set that we like and recommend, we'll put it in that newsletter. It's a quick one to two pager. and it'll show up to your inbox every week. And if you if you subscribe, yeah, we'll we'll we'll be talking to you more often than we do on the podcast. Yep. My dad told me to say a shout out in Spanish. So at all in the sitios hispanos, Colombia, Puerto Rico, those of that, much gracias. But anyways, thank you guys. Thank you guys for the support and we appreciate it. And that's the Growth Thread Podcast. we'll be back next week with a new topic on Hec: My dad told me to say a shout out in Spanish. So at all in the cities hispanos, Colombia, Puerto Rico, those of you is incredible. But anyways, thank you guys. Thank you guys for the support. Gus: some of the categories that we've already spoken. Hec: some of the categories that we've already spoken on and we'll we hope to keep building on those. Let's see what Coleman.