The final solution to all "I have some money what do I do?" threads.

[RHL]

It was definitely the most potent idea of Rich Dad poor dad, but it really didn't sink in until I read TMF because it was explored outside real estate in such a comprehensive way. It all boiled down to the answer to this one question...

We see it on here all the time: "I have a thousand dollars, I have five hundred dollars, I have ten thousand dollars..." and the inevitable conclusions: "Should I go to school? Should I buy a car? Should I buy a boat? Should I blow it on a vacation?"

Reach into your pocket and grab whatever money you have. A dollar. A dime. Doesn't matter. Hold it and look at it. The difference between freedom and wage slavery, between working till you're old or retiring when you're young, is that you look at that, and stop seeing an opportunity to consume. When you have a little windfall and you're not in the fastlane, if you spend it on frivolities like a sports car or a cruise, you look as stupid as a fisherman who goes out to hook some blue fin tuna, but right as the school is swimming beneath his boat, he opens up the little tub of bait he brought along and starts shoveling the dirt and worms in his own mouth, greedily slurping down the little squirming maggots and telling everyone how awesome it tastes.

Meanwhile, 400lbs of prime seafood is getting away. Where are you? Choking down your little bit of dirt and tricking yourself into believing that it was worth it.

If you trade time for money, your money shouldn't be for consumable frivolities. It's not for designer clothes, or iPhones, or Sunday Ticket, or a Mustang GT. Shop at Wal-Mart or Marshalls, drive a $1200 Geo Metro, get a Republic phone, cancel your Netflix, and spend your money to get free. Even if you're really, really hungry, take that bait, hook it up, and get it the hell overboard. Let your stomach gurgle, you'll be eating good tonight.

Money is your best bet to earn more money. Until you're meeting needs at such a high volume that money is available in excess, the little bit you do have, whether it comes from a job or a lucky break from somewhere, should only be spent one way. There's only one fastlane answer to the question "I am in the slow lane and have X amount. What should I buy?"

Buy something to meet the needs of others.

Spend your money in a way that causes it to be multiplied rather than consumed.

 

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[MJ DeMarco]

Marked Gold. Stickied. Rep Transferred. Bookmarked. Slated for excerpt in next book. Don't get any better than that.

 

[MJ DeMarco]

hat's why process is all important

Failures of process always come down to exceptions... exceptions that break the process and carry consequences.

Oh, it's only one cookie...
Oh, it's only one donut...
Oh, it's only one hooker...
Oh, it's only one snort...
Oh, it's only one car...
Oh, it's only 12 easy payments...
Oh, it's only a weekend...
Oh, it's only...

 

[Kak]

I just sent you $100 forum cash. This was an amazing post. Don't be allergic to your money or you will never have any. Get used to having a lot if it around and in excess.

Don't spend your money just because you have it. That's stupid.

If you are wondering what to do with it you SHOULD SAVE IT AND INVEST IT until you have a clear answer.

 

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[RHL]

Marked Gold. Stickied. Rep Transferred. Bookmarked. Slated for excerpt in next book. Don't get any better than that.

Wow, I'm honored. Thanks! You know, I was just getting ready to go to bed last night, it was late, I'm really spent right now because I've been up till 2AM every night trying to digest the tax laws of several states I'm considering moving to, and I took a break to get a drink and popped into the forum, saw a thread of the ilk mentioned above, and I thought... I'm not a fastlane expert, but I know this. "This is step A. This is step 1. This is the primal germ of the fastlane, and anyone asking "what can I buy myself" missed it. Doesn't matter if you just hit powerball and are getting $100M after taxes, doesn't matter if you're an NBA starter. If you pick up a dollar, and your first question is "What can this buy me" rather than "Can this buy something worth $1.50, $2.00, or $5.00 to someone else?" you're still in the slow lane or on the sidewalk.

I'm glad other people appreciated the sentiment. This community is what bred this belief in me, so I'm glad I can continue to keep this important idea in the sights of other people who browse here.

 

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[RHL]

$25*12=300 just in the last "week or two." Nobody ever became obese from one order of fries, or an alcoholic from one drink. If $25 is part of a good process that leads to saving $600+/mo, it does matter a great deal. I just looked over a credit card statement of mine from 5 years ago. $90 on gas. $175 at the grocery store. $85 on cell service. $50 on internet. $1400 on eating out and drinks. That's a mortgage. That's a mortgage for a rental. That's the passive income that could get you free being gobbled and drunk up and pissed out into the bar's urinal. That's why process is all important, even for a $25 expense.

 

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[Guest]

Here I am quoting Kevin O'leary again. He used to be my least favorite character on Shark Tank due to his harsh, nasty, and often times cynical remarks. But the more I watch the show the more I am starting to see his points regarding money.

One thing he said that really stuck with me is his analogy, "Here's how I think of my money - as soldiers - I send them out to war everyday. I want them to take prisoners and come home, so there's more of them."

When you spend money on trivialities, you are killing your soldiers!

www.youtube.com/watch?v=9pIZM2r_AJA#t=53

 

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[DaRK9]

I've been more aware of this recently as I'm going into app production soon.
Do I really need X product? Nope. That's $60 towards FB ads.
Should I really eat out? Nope. That's $20 towards my developer.

 

[The-J]

nvm i decided to join a mlm they said i can make a lot of money! i only had to put up $500! so uh who wants energy drinks?

i also bought an older version of the harley i wanted! thanks fastlane dudes!

On a serious note, this kind of thread has become a 'Should I go to college' or 'Should I quit my job' in how common it is for total strangers to ask other total strangers to make decisions for them that can change the course of their life. It's really silly.

 

[Kak]

^Yes

Would you rather have a nicer car "because you can afford it" or a cheaper car, keeping your cards close, and 8/10 of that money you would have spent in investments?

I know what I would rather have and it is the point of this whole forum. Money.

We all know frugality won't get you there, but unnecessary excess on depreciating assets is a poor business decision.

 

[The-J]

no but srsly what do i do with my $5k? there's this harley that i want but i also thought i'd make an amazon business in the skin care niche like that one guy was doing. also i wanna buy stocks and day trade cuz i can make money off of that? what do i dooooo

 

[RHL]

My rep bank after MJ gilded and stickied this post:

Seriously though, this:

I really want to order delivery for the dozenth time in the last week or two.. but this thread is stopping me. Damn, guess I'm going to see what I've got in the pantry lol.

Made it all worth it. Make that money fight for your freedom!

Actually, check that, being given props for imagery from an author who made over $100K from her books is pretty boss too.

 

[MJ DeMarco]

but there is something about seeing those dividend deposits every 3 months into my account no matter if the overall market is going up or down.

I go one step further, I have a physical check sent to my address, so I literally turn it into mailbox money.

Opening up a mailbox to a check never gets old, especially if you don't attribute that check to some type of work, or job. It's like winning the lottery. This makes the process very tangible, as opposed to seeing your digital balance increase by X dollars.

Likewise, I like taking option gains for the month and transferring that to CASH.

When you put the gains into CASH, it really brings it into REALITY.

Again, digital numbers on a screen can make the whole process intangible and distant, kinda like gaming chips at a casino. We don't want that!

 

[MJ DeMarco]

My rep bank after MJ gilded and stickied this post:

Value pays well and heck, you didn't even need a slick headline to get people rushing the doors.

 

[RHL]

I don't think it is a 'failure of process' because the act of failing is a process.

In many cases though, it isn't. It's a fact of life that almost universally, construction is more protracted and takes more effort than destruction. Entropy trumps order. A building that took 20 months to erect can be dynamited in two weeks. Money you saved up for 9 years can be blown in one weekend. Sure, you can begin processes that lead you on a slow descent towards failure, and some constructs are so resilient (ex. an athletes body, a billionare's wealth) that it would virtually always take a process rather than an event to undermine them, but when you're just starting out, which is what this thread is about, an event can definitely take you out of the game.

 

[DeletedUser394]

I'm going to say it again, this thread got to me at the right time.

Returned a bunch of crap I had just bought that I didn't need (distractions).

All told, I've saved about $1,000 just by reading this thread. Have another bit to go.

I took that money and added it to one of my passive income streams (100% passive in this case, I don't have to do anything).

That $1k addition is going to net me a grand total of 0.11c per day, 365 days per year. It's a small fraction of the sum of the income stream, but I view it as symbolic more than anything.

Would I rather work 'x' amount of hours to afford 'y' amount of crap, or would I rather have my money work for me so that I don't have to work for my crap. I prefer the latter obviously.

 

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[MJ DeMarco]

Relevant to this thread... for the youngsters who have money to burn...

[GALLERY=media, 79]Ecomonic Slavery Explained by MJ DeMarco posted Oct 9, 2017 at 7:13 PM[/GALLERY]

 

[DeletedUser394]

The only thing I never regret spending on (no matter how egregious the number at the time) is, and will always be, travel.

Other than that I regret pretty much every purchase I've ever made, because as you said, it takes you further away from the end goal.

Thanks for the renewed motivation.

 

[RHL]

Yet another thread I wish I had when I was 18.

Wishful thinking won't change anything. What's going to change in the next 24 hours?

 

[MJ DeMarco]

That $1k addition is going to net me a grand total of 0.11c per day, 365 days per year.

There in a nutshell is the whole philosophy. Just add a few more zeroes.

 

[DeletedUser394]

..and now it's only $7,000

View attachment 8574

Which represents about .76c/day in fully passive income. That's less than 1% of what I'm doing overall, but strictly from a 'conscious consumer' standpoint, this is how much I"m up from this thread.

Been keeping track in a separate account since this thread was started.

AND NOW IT'S 6 F*ckING FIGURES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! SIX FIGURES!!!!!!!!! AHHHHHHHHHHHH. This is just that one account that I set up way back when this thread was first posted.

This thread, and the philosophy behind it is lifechanging. LIFECHANGING. I'm on cloud nine. Still waiting for a certain member here to post lambo pics... all talk, no substance... guess what bud, I could buy one in cash today.

#50 on the GOLD list, time to bump back to #1.

#1 GOLD list forever in my book

Ok... There is a difference between building your wealth and being a cheap a$$. If $25 means that much you should probably be trying harder.

Over the past 14 months, I've been trying

 

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[ChickenHawk]

...fisherman who goes out to hook some blue fin tuna, but right as the school is swimming beneath his boat, he opens up the little tub of bait he brought along and starts shoveling the dirt and worms in his own mouth...Meanwhile, 400lbs of prime seafood is getting away.

That's a seriously powerful image. Awesome post!

 

[IAmTheJeff]

It was definitely the most potent idea of Rich Dad poor dad, but it really didn't sink in until I read TMF because it was explored outside real estate in such a comprehensive way. It all boiled down to the answer to this one question...

We see it on here all the time: "I have a thousand dollars, I have five hundred dollars, I have ten thousand dollars..." and the inevitable conclusions: "Should I go to school? Should I buy a car? Should I buy a boat? Should I blow it on a vacation?"

Reach into your pocket and grab whatever money you have. A dollar. A dime. Doesn't matter. Hold it and look at it. The difference between freedom and wage slavery, between working till you're old or retiring when you're young, is that you look at that, and stop seeing an opportunity to consume. When you have a little windfall and you're not in the fastlane, if you spend it on frivolities like a sports car or a cruise, you look as stupid as the fisherman who goes out to hook some blue fin tuna, but right as the school is swimming beneath his boat, he opens up the little tub of bait he brought along and starts shoveling the dirt and worms in his own mouth, greedily slurping down the little squirming maggots and telling everyone how awesome it tastes.

Meanwhile, 400lbs of prime seafood is getting away. Where are you? Choking down your little bit of dirt and tricking yourself into believing that it was worth it.

If you trade time for money, your money shouldn't be for consumable frivolities. It's not for designer clothes, or iPhones, or Sunday Ticket, or a Mustang GT. Shop at Wal-Mart or Marshalls, drive a $1200 Geo Metro, get a Republic phone, cancel your Netflix, and spend your money to get free. Even if you're really, really hungry, take that bait, hook it up, and get it the hell overboard. Let your stomach gurgle, you'll be eating good tonight.

Money is your best bet to earn more money. Until you're meeting needs at such a high volume that money is available in excess, the little bit you do have, whether it comes from a job or a lucky break from somewhere, should only be spent one way. There's only one fastlane answer to the question "I am in the slow lane and got X amount. What should I buy?"

Buy something to meet the needs of others.

Spend your money on in a way that causes it to be multiplied rather than consumed.

Dude, best damn thing I've read all day!

 

[ArthurDayne]

Well said. RDPD wasn't perfect, but its approach towards "when can I actually afford X" was spot on. My salary goes into my assets, and my dividends buy my champagne - but more often than not, remain unspent and continue to buy me more future dividends.

no but srsly what do i do with my $5k? there's this harley that i want but i also thought i'd make an amazon business in the skin care niche like that one guy was doing. also i wanna buy stocks and day trade cuz i can make money off of that? what do i dooooo

Dude, gotta day trade. Free money.

 

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[Guest]

Failures of process always come down to exceptions... exceptions that break the process and carry consequences.

I understand what you are saying but I would change a few words around. I don't think it is a 'failure of process' because the act of failing is a process. You can NEVER break process. Process is a part of life and as long as you're breathing, eating, thinking and moving around you are naturally engaged in process. Process is a series of actions or steps taken in order to achieve a particular end. That ending can either be success, failure, or anything in between.

When we talk about process on this forum we are biased towards process as being good, understandably because we are all working towards a positive event. But failure is a negative event that also has its process too. So what makes up this process that we speak so highly of? Choices!

Small choices over a period of time add up to an event. In fact BIG events are comprised of smaller micro events. You don't become a serial entrepreneur after the success of one business. You don't make it to the World Cup after winning a single local soccer match.

Einstein says "compound interest is the eight wonder of the world," but I don't think that he's just talking about money.
Darren Hardy, a student of Jim Rohn has a whole hour talk about the compound effect.

It's not failure of process but rather the failure of making the right choices.

 

[Guest]

That's all it takes is a wish. I first was on this site when I turned 17 and read this book. Since then the firm I spoke about 3yrs ago + (now) has grown just based off a wish and a couple one liners I read on this site.

Wishful thinking in my opinion is the only motivation you need to change the next 24 hrs of your life.

Wishful thinking is the seed that starts it all. It comes after belief but precedes the idea stage. @MJ DeMarco had a seed planted in his mind during his childhood when he saw a young man in a Lambo. His belief was that only celebrities and mega rich people could afford such things, but it was shattered when he found out the young man was an inventor. This event causes a paradigm shift in his thinking and he said to himself that he could do it, and the rest is history.

However wishing, thinking, and saying is cheap. The next step is massive action. Like the Richter scale, each step up requires 10X the energy and effort of the last one. Congrats on your firm, you have wished about, spoke about it, took action, and the next step is making it a habit.

“Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.”
- Mahatma Gandhi

 

[RHL]

I have a particular friend who has a substantial net worth. He has a rule - he buys anything under $300, that he wants, without thinking about it. Anything over $300 he puts some thought into it.

My rule is that I never tap the principle I started with at the beginning of the journey for anything but "investing"/fastlaning, and when I make a profit, I never spend more than 33% of it on something consumable, 2/3rds of the profit goes into making more profit.

 

[pro]

Yes. It is interesting when gurus who drive $100,000 cars start asking you for loans.

 

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[JasonR]

Excellent post.

I have a particular friend who has a substantial net worth. He has a rule - he buys anything under $300, that he wants, without thinking about it. Anything over $300 he puts some thought into it.

He could easily spend $3000 a day and not miss the money.

But he understands the concept in the original post. He's smart with his money. He doesn't blow it.

Awesome thread.

 

[MisterBHZ]

And, this is what getting it means.

Put the money to work and watch it make even more of it.