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Brothers, we all deserve to live a life of wealth and abundance. We have the right to financial freedom, having money work for us instead of slaving away daily, only to be undone by the taxman or poor money decisions. So today, in the second and final chapter of our money conversation, I will be showing you my simple system for money management.
First, you need to understand what wealth and abundance are, and how they differ from one another. At the end of the day, brothers, wealth, and abundance are a mindset. They are a choice. And if you begin by changing your mindset, then you have a much higher chance of attaining long-lasting wealth and abundance.
Now, my system for money management is simple yet highly effective. It’s all about percentages, brothers. After dealing with your tax, you then need to ascertain your disposable income and expenses, separating your expenses into categories: necessities, giving, rewards, growth, investments, etc. Once you’ve sorted through those complexities, the next part starts with ensuring that your necessary expenses only require 40% of your disposable income.
When your necessities are within 40% of your disposable income, then you can start having fun with your money. You can open separate accounts for each expense category and enjoy the benefits of the different institutions. And remember to always give freely, expecting nothing in return. And brothers, this is guaranteed to change your relationship with money, for the better.
I can’t tell you what to do, brothers. I am merely showing you what has worked for me and how the same principles could work for you, too. It’s time to abandon your poverty and scarcity mindset and choose a life of wealth and abundance, as you continue to elevate your alpha.
What You’ll Learn from This Episode:
- Understanding abundance and wealth by exploring the differences between them.
- Developing a way to work with your money, starting with how you file taxes.
- My percentage system for simple money management and what you can learn from it.
- Why living life in abundance and wealth starts with changing your mindset.
- How minimalism and simplicity help you to grow wealth and abundance.
Listen to the Full Episode:
Featured on the Show:
- Remember to check out the new How to Live Your Purpose course.
- Enroll for the Elevated Alpha Society Spartan Academy here.
- Sign up for Unleash Your Alpha, your guide to shifting to the Alpha mindset.
[INTRO]
[00:00:09] ANNOUNCER: Welcome to The Alpha Male Coach Podcast, the only podcast that teaches men the cognitive mastery and alpha mindset that it takes to become an influential and irresistible man of confidence.
Here’s your host, certified life coach and international man of mystery, Kevin Aillaud.
[EPISODE]
[0:00:32] KA: What’s up, my brothers? Welcome back to The Alpha Male Coach Podcast. I’m your host, Kevin Aillaud. We’ve got a little bit of storm happening into loom right now. A little bit of wind, a little bit of rain. If you hear that in the background, ideally, my podcast editors have removed all of that. But if you do hear that, then that that’s what’s going on. It’s wild, because it sounds a lot like motorcycles. It’s like a vroom vroom sound, because there’s this wind tunnel right to the apartment where I live.
It’s a beautiful place. I love to loom. It’s got this mixture of indoor and outdoor, where the jungle – the jungle is like, it’s inside. We’ve got the jungle right here with us. The downside, of course, is that we are living inside and outside. I cannot separate myself from the outside. You may hear a lot of that wind. You may even hear the rain, as it begins to get heavier and heavier throughout the course’s podcast. Brothers, I’m still in Tulum. I love it here. I’m going to continue to be here for a few more months. I mean, basically, yeah. I just love this area of the world.
Now continuing with the simplicity series, I’m going to offer something today that’s a bit different than usual. Because today, we’re going to get into some action, we’re going to get into some how-to. Usually, I like to give you guys a way to look into your thoughts and come up with the action on your own. Come up with whatever action works best for you based on the thoughts that you choose. This is through the universal truth, of course. I will still do that on the podcast today as well. However, I’m going to give you guys a broad view on how to begin to manage your money in a very simple way. This is part two of simplicity with money.
[0:02:02] KA: To begin, let’s recap the difference between abundance and wealth. I think it’s important to recap this. You guys really understand this. Wealth is having, or hoarding of money, or energy. It has to do with how much you have, whether it’s a dollar in your pocket, or a million dollars in the bank. Now, you could say it has to do with your net worth, although I really don’t like that term, because it implies so much and can become an apparent thought, or a belief. It really is just a measure of the amount of cash that you have. I would even consider it to be your liquid cash available specifically, which is not including all your other assets.
I’m talking about cash, not medals, not real estate, not gems. I mean, technically, your skills are an asset that could be considered a part of your net worth as well. But I’m not going to get into that on this podcast. That’s why I want to be very specific when talking about wealth as defined by the liquid cash you have available in the bank accounts and investments accounts. Anything that can be turned into cash within three to five days is considered liquid in this definition. Okay, so that’s wealth.
Now abundance is the flow of money, the flow of energy that moves through you. While generally, abundance is misunderstood as wealth, it’s misunderstood as having, I would say, it’s closer to cash flow. While cash flow is generally understood to be one direction, right? Cash flow is the cash flow towards you. The definition of abundance is a two-way direction, towards you and from you, because abundance requires money to be given, to receive and given. Abundance has nothing to do with wealth and wealth has nothing to do with abundance.
In fact, the only thing that they have in common, in this case, is that we’re talking about money. We could be talking about a wealth of information, having or hoarding of the energy of information. We could do the same with abundance of information. We could talk about the abundance of information, a massive receiving of and passing on of information. The flow of receiving and giving. In this case, on this podcast, we’re going to talk about money.
Here’s an example, just to help with the definitions in terms of money. A “wealthy man” who is in scarcity, okay, has a million dollars in his bank account and passes through him 20K a year. You have a million dollars, but every year you make $20,000. He does everything he can to hang on to as much as he can, because he’s slowly building up his wealth for the sake of wealth alone. How he got to that million dollars was basically by making 20K a year and spending 5K a year. Living in this way that’s very scarce. He lives in scarcity and poverty.
Although on the books, he may appear to be very wealthy. He’s got a million dollars in the bank account. An impoverished man who is in abundance is the opposite. Okay, an impoverished man who is in abundance has 20K in his bank account and passes through him a million dollars a year. He does everything he can to increase the enrichment simplicity inspiration in his life. He gives freely to others for the same reason, to increase their enrichment simplicity inspiration. He doesn’t much care about having money, as much as he cares about what money does in the form of experience. He lives in abundance and joy, although in the books, he appears to be impoverished.
If you just look at his net worth, he’s got 20K. He’s in poverty. Now, remember, brothers, we’re talking purely about money in these terms. Both wealth and abundance are thoughts, not facts. They’re beliefs. They’re not circumstances. It’d be easy to say that the impoverished man is wealthy, because he’s wealthy in generosity, or in experience. However, we want to keep this thought experiment contained using a specific external energy. In this case, we’re talking about money.
[0:05:33] KA: Now, I also want you guys to know that these two are not mutually exclusive. You can be wealthy and abundant, just as you can be impoverished and in scarcity. What is important to note here before I move on into the content of this podcast is two things. First, is that one does not necessarily lead to the other, which is to say that wealth doesn’t make you are abundant, and poverty doesn’t make you scarce. Nor does abundance make you wealthy and scarcely make you impoverished. Although, that is more likely the scenario due to the nature of the flow, the attractive force of abundance and the repelling force of scarcity.
The second thing to note is that both of these terms are thoughts, not facts. I said that earlier, and I want to make sure that you understood this clearly. Wealth is a thought, brothers, and abundance is a thought. It is actually the thought energy that drives the experience and that creates the results. In the universal truth that all of you have learned so much about, you can see that the actions are going to be different based on the feelings and the feelings are going to be different based on the thoughts.
In addition to that, the power, the true power that resides in the thought alone is what generates the energy, or the emotion of abundance, or scarcity, wealth, or poverty. A poverty mindset is not the same as a scarcity mindset. A wealthy mindset is not the same as an abundance mindset. They’re similar, but different. I could have a wealthy mindset, be knowing that I’m deserving of wealth, that I deserve to have lots of money, that I deserve to have a big bank account, but I can still be in a scarcity mindset. I can be afraid of losing that money. I can be holding on to it, gripping onto it so tightly.
In fact, before I began doing what I’m going to offer you on this podcast today, I was in the category of having an abundance mindset and a poverty mindset. That I was in this mindset of not having large amounts of wealth, but knowing that it was all going to flow towards me. Even now after utilizing what I am going to offer all of you today, I still sometimes fall into the poverty mindset. Although, my mind cleverly conceals it as generosity to make myself feel better, and I’ll explain that more later on in the podcast.
Now, I am hoping that you have a good idea on the difference between wealth and abundance, as well as poverty and scarcity. If you need further clarification and want to get into where you might fit on this four-blocker, or magic quadrant, as it’s called, book a consultation call and we will investigate, as well as determined how to shift to another square for you. Okay, let’s rock and roll.
[0:08:00] KA: Here is the system I use and want to offer it to you here, so that you can begin to develop a simple way to work with your money. First of all, are you a W2, or are you 1099? That’s the first question. Are you an employee, or are you self-employed? It all depends on how you file taxes. I know it sucks to start a podcast with the idea of taxes, at least for me it does. I have my own beliefs about taxes that maybe one day I will share with all of you, but this isn’t an episode on developing an ideal financial future. I want to work with you on what we’ve got. With what we’ve got, we need to determine if taxes come out of your salary before you’re paid, or after you’re paid. If they come out before your W2 to take your taxes out before they pay you, they come out after your 1099, or you got to pay taxes on the money you make.
We also need to know if there are any automatic contributions made to investment accounts, or retirement accounts. I know, I told you this would be simple. It actually is. We just need to determine how much money you have coming through once it reaches your wallet and if anything has been taken out already. That’s really the most complex part of all of this. Once that is determined, it all gets much more simple. Now, the reason why we need to know this very briefly is that if you are a W2, then we’re going to skip right to the percentages around personal living. I’m going to get to those in a second. If you’re not a W2, then you’ll have to be paying taxes on what you take home. What I do is I put away 10% of my income for that.
Brothers, once I pay taxes, it comes to about 8% to 12% based on my deductions. I’m in the tax bracket of 30 something percent, which is wild and weird. A third of that, the government wants a third of the money that I create. After deductions, it comes to about 8% to 12%. I found that 10% is about average and I’ll either be giving myself a bonus at the end of the year, or writing the government a check based on that 2% difference. Even determining if you are a W2 or 1099 can be simple as well, if you know what your general taxes are over the last few calendar years as a percentage of your income and begin to budget for that as a percentage.
Okay, here we go. Complexity out of the way. Now, I’m going to get into the system. Keep in mind that this is my system, brothers, and it helped me with increasing my wealth. I learned to have an abundance mindset earlier in life, which afforded me massive cash flow. As I already told you guys on previous podcasts, I ran gyms and opened them in multiple countries all around the world. I would go massively into credit debt, build back the wealth, pay off the debts, stockpile a small amount of money, again, because I had that poverty mindset. I really wouldn’t stockpile a lot of money, and then I would just do it all over again, with credit. I just take out a bunch of credit, build another gym and do it all over again.
I never really had a lot of money, but I was really good at attracting it. I was really good at abundance. I was really good at having it flow through. I had an abundance mindset with a poverty mindset. Because I grew up in poverty. I grew up being told, we can’t afford that. I grew up being told, we don’t have the money for that. Or, I was asked the question as a kid by my mom, “Do you really need that? Or do you just want it?” I mean, can you imagine? I was a kid. A kid, guys. I don’t know the difference between needing and wanting. Because as a kid, they’re all the same thing, right? If I need it, I want it, if I want it, I need it. I definitely felt the energy coming from my mom. She was not going to buy it for me. As a kid that just wanted to feel loved and safe, I would answer the way I thought she wanted me to. This was the beginning my people pleasing.
I grew up living in poverty and developing a scarcity mindset. As an adult, through the work I’ve done on myself, I was able to break out of the scarcity mindset. There is a secret to that, which I teach everyone in the academy. However, I still had and sometimes still have a poverty mindset. To combat poverty is a mindset, and as a result, I reverse engineered my intentional model of alignment, and came up with a system I’m going to share with all of you now. That being said, I am not telling you what to do. I am only offering you what I do, because it is simple for me and I believe, it will help you with both increasing your wealth and abundance as a mindset and as a result. Experiment with it and see what happens for you. That’s all I’m saying.
[0:12:00] KA: Now, let’s begin at the beginning. Once you have determined whether you are paid pre or post tax, once you’ve determined whether you’re W2 or 1099, you now determine what your necessary expenses are. Here is where I’m going to trigger some of you, probably a lot of you, actually. You should be – oh, geez. I just really used that word, didn’t I? I don’t like that word brothers. I don’t like that word ‘should’. I don’t like it. All right. It’s my belief, right? This is all my belief and my systems for simple money management and increasing wealth and abundance.
I really want you guys to know that and I keep saying it, because I’m bending my own rules, nearly to the point of breaking them, especially when I say things like should. However, I’m going to say it again. For the system to be effective, you should be – I have such a trouble saying it. I want to offer you that you all have your necessary expenses fit into 40% of your income. Trigger. I know. I said that. 40%. A lot of you might be saying right now, “Whoa, that is a poverty mindset to have all of your necessary expenses fit into 40% of your income.” I’m going to explain this very simply.
Most humans overspend due to the burden of thought and complexity. This manifests through the matrix as comparison, greed, and conditioning. There will be plenty of money left over for you to have all the things you want, especially as you increase your abundance, the flow of money in and out. However, in order for this system to work and become effective, the first thing you must do is get your necessary expenses to be at, or below 40% of your take home income.
Most financial planners, at least the ones that I know, will put that number at 80% for your necessary expenses. Here’s the thing, I’m talking about necessities, brother. I’m talking about your rent, or mortgage, your utilities, your car payment, your fuel costs, your phone, your Wi-Fi, your food bills, not the restaurants and alcohol. I’m talking about the groceries that you bring home, your medical expenses, your insurance. These are a few of the necessary expenses. You can add some things to this category, or you can remove some depending on what you choose for the other categories.
However, what is important is that you have all of your necessary expenses fit within 40% of your income. That alone, if you can do that, that alone will change your relationship with money. I guarantee it. Consider it quickly. Here we go. I’m going to do some math with you. Consider this quickly. If you make 10K a month, then your necessary expenses, your necessary expenses is $4,000 a month or less. Does that blow your mind? Does that blow your mind, that if you make a 120K a year, a $120,000 a year that your necessary expenses are less than $4,000 a month?
First of all, I really hope that you make at least 10K a month. If not, I want to offer that you immediately enroll in the academy. I know what you’re going to say. If I don’t make 10K a month, you’re probably going to say, “I don’t have the money for that.” Well, my brother, first of all, I love you. I do love you. I am not judging you. I will hold space for you and I want you to know that you should, here’s that word again, should be making at least a $120,000 a year. That is the minimum you deserve. If it’s not happening, I want to help you discover why. It’s also the reason why you think the academy is too expensive, which it isn’t. The price for the academy is incredibly low, relative to what you receive, which is a transformation from being a victim of the matrix to being free and master of your own destiny.
I mean, for what I charge, I mean, that’s – I mean, it’s incredibly cheap, right? Anyway, look, if you’re making 10K a month, then all your necessary expenses come in at 4K a month. This may blow your mind, most people who make $10,000 a month are living in homes with a mortgage alone is over $4,000 a month. That is the definition of living outside of your means, in my opinion. Again, I’m not judging. If you are doing this, I get it. It’s a part of the conditioning, to have more and more and more and more. That’s our conditioning. This is the effect of the conditioning of the matrix, which drives more and more people into the mindsets of poverty and scarcity. Because the mental burden then becomes to pay the bills, instead of living your higher purpose of love and service.
Since you’re already in the mental framework, it’s a lot easier to buffer and go unconscious, which again, leads to more and more and more and more. That may be the intentional plan of the matrix. However, it’s definitely a result. Get everything, get everything you need, get all of your necessary expenses into 40% of your income. At first, this may require you to cut back. Cutting back is not a matter of scarcity, brother. It’s not a matter of poverty. It is constraint. It is minimalism. It is mind management.
[0:16:28] KA: As I mentioned to you guys last week, and something we do in the academy is to take inventory of all your things, right? Look at everything you have, whether it’s a spoon, or a Rolex. If it doesn’t serve you, if it isn’t useful, or if it doesn’t enhance your life through beauty and inspiration, dump it. Get rid of it. Sell it if you want to. It’s just taking up space and it could be sucking up energy. This means you look at your expenses, what is necessary and what is not? Take a look at what you’re paying for your rent, or mortgage and be honest with yourself, brother. You got to be really clear with yourself. Because for some of you, and maybe a lot of you, the next step takes a lot of courage. Can you downsize? Can you downsize to meet this 40% marker?
I’m telling you right now that you can do it the other way, which is to create more cash flow, which would then raise the amount to make up that 40%. However, if you’re already burdened by bills and expenses, it is going to be more effective and efficient for you to get everything into that 40% range first. If it’s close, don’t worry about it. If it’s like that, 45% to 55%, you’re pretty close as you raise your abundance, you’re going to bring it down. I wouldn’t consider selling your house, or moving to a new apartment.
However, if your necessary expenses are hovering at 60% or above, then you’re going to be burdened by these circumstances, which will trigger what is already going on inside your mind around poverty and scarcity. That’s the whole universal truth, which again, we can do guidance and coaching on in the academy. It is going to take courage, because it may mean moving, it may mean downsizing into something that is less of an expense to hit that 40% marker. Now remember, I’m talking about necessary expenses. I’m not talking about discretionary expenses. We’re going to get to those later.
If your necessary expenses aren’t 60% or above, then you’re probably the kind of person that is saying things like, “I can’t afford that. Or, it’s too expensive.” Let me tell you this, too. 60% isn’t even all that high. A lot of people are living paycheck to paycheck. That means that they’re in the 90% region. Their necessary expense is in the 90% region. They can’t even afford to do anything. What they do do is purely buffering and that’s causing them even more burden, even more stress. The money managers that ask for expenses to be in the 80% region are looking for people to save, or invest about 10% for compounding over a lifetime. That still doesn’t allow for changes in result, because the change has to happen in the cognitive level first. That is why I’m saying, you will see it in the percentages when you work on your mindset through this system and the system will provide the confirmation bias as you work to manage your mind.
If you are living at 80% or above for your necessary expenses, the results speak for themselves. You probably have a poverty mindset, a scarcity mindset, or both. Now, that’s the hard part. To get your necessary expenses in that 40% range, that’s the hard part. The rest is fun. The rest is easy, and why this system is so effective simple, because 10% of your income goes to giving. That’s next and it’s not negotiable. If your necessary expense is around 55% range, you can probably start your giving at 5% and increase that as your abundance, as your flow increases. However, it must be between 5% to 10%, or higher. This is where I get stuck, which I’ll explain later on in the podcast.
Okay. You have 40% going to your bills, your necessary expenses, and then you have 10% going to giving. Brothers, I mean real giving here. I mean, giving without thinking about giving. I mean, giving without the expectation of return. I mean, giving for the sake of giving, for the sake of simply unburdening yourself from 10% of your wealth. I mean, you literally give it away without reasonable justification. This could be buying someone’s groceries, paying for someone’s meal at a restaurant, filling someone’s fuel tank at the fueling station, or just handing a $20 bill to a guy playing his guitar on the street. It’s just giving.
It’s like in exhaling the air that’s in your lungs. You don’t think about it. You just do it. It just happens. I’m not talking about buying a woman a drink at a bar, okay. That’s not giving. I mean, maybe it is, but it’s probably not. There’s probably a reason that you’re doing it, other than for the sake of giving itself, right? Now, if you buy the entire bar a round, if you buy everybody in the room a drink, then that’s maybe giving.
Now, you have 50% of your income remaining. 40% to unnecessary expenses, 10% goes to straight giving. You’re just giving it away. This is the fun part. This other 50% is the fun part and the part that really drives both the wealth and the abundance results. Remember, it begins with the mindset and that is key. You must work on the mind, while you change your behavior. Otherwise, one of two things will happen. Either the system won’t work, right? You’ll try and then you’ll give a bunch of excuses. It’s too hard, or too complex, you just can’t do it. Or, you will do it for a while. Since your thoughts don’t change, your results will relapse and you’ll end up right back where you started.
[0:21:18] KA: I used to work with students in the fitness industry for years. I’ve seen both of these occur with diets and food. Either they don’t start the meal plan, or they don’t start the diet, because of some excuse, because it’s too hard, or too complex, or they just can’t do it, which is resistance. Or they do it for a set amount of time and they see the results, but then they self-sabotage, which is due to the belief system that didn’t change as the results did.
You have to work with your mindset. You’ve got to work with your mindset as you do this system, as you work this how to. Now, the other 50% is all up to you. This is the fun part. You get to do with this other 50% whatever you want. That’s where the wealth comes in. That’s where the abundance comes in. That’s where the fun comes in. You can break it into 10 groups of 5%, you can break it into five groups of 10%, we can do two groups of 20% and a one group of 10%. It’s all up to you and It’s so fun
Here’s some suggestions. You can have a play account. This one is for having fun and amazing experiences. You can go out to restaurants here, that’s where you put your restaurants. That’s your place. It’s fun. This is the experience. This is for activities like scuba diving or golfing. You could put your gym membership in here, or you can put it in your necessary expenses, right? Because it depends. It could be necessary. You can think of your gym membership as a part of your necessary expenses, as part of your health care program. Or you can put it in your experience as a part of your community and your building of the yoga and the having fun with people.
Vacations, like air travel and hotels go in this category. They go into having fun and having experiences. Buy tickets to the symphony, or the museum, if that’s your thing. It’s really about your experience. This is something you do. The play account is something you do. You can have a reward category, a reward account. This one is for buying stuff that enhances your life, or beautifies your life, or simplifies your life. Maybe you want a Rolex, brother. Maybe you want a Rolex, so what? It’s a watch, right? It’s a $10,000, $20,000 watch. Don’t let anybody judge you for that. If that’s what you want, if that beautifies your life, that makes you feel beautiful. If you put that on your wrist and you feel powerful and amazing and confident, get it, buy it, reward yourself. You have an account for that.
Maybe you want a rifle, right? Maybe you want a rifle. I don’t know what your thoughts are on the Second Amendment. It doesn’t make a difference to me. I was both in the military and a competitive shooter, so I’ve got guns. I’ve got rifles. You buy a rifle from the reward category, and then you pay for the time at the shooting range with a buy-in for your competition from the play account. Because the rifle is the thing and the shooting competition is the experience.
Maybe you want a new car. All of this goes into your reward account. This is where you buy things, okay? Your play account is where you have experiences, things you do. The reward account is where you buy things. My favorite is the growth account, also known as the education, or personal development account. This category is all about building yourself. It’s different from the play account, because the play account is about experiences. The growth account is about development. This account is where you buy your books, right? This is where you pay for coaching. This is where you enroll in the academy.
It’s a personal develop account for growing yourself. It’s the account for when people talk about investing in themselves. Have you ever heard people say that? “Invest in yourself.” The first money you do, put it back into yourself. You are your own business, right? I’ll tell you what, after the giving account, I would offer that you guys start with this one. Necessary account, 40%. Giving account, 10%. Then growth account. Whether you want to make it 5%, 10%, 20%, or the other 50%, totally up to you. I would make it mandatory if I were you. But I’m not you. I’ll tell you, some people opt out of this one, which is fine.
Again, this is something I work with my guys in the academy and some people say, “No, the growth account, I’ll save it for later. I want to do my play account. I want to do my reward account. I want to do an investment account.” That’s another one you guys can do. You guys can do an investment account as well. This would be a financial freedom account, where you send your money to an investment bank, or a money manager. Or, if you know how to trade and you enjoy doing it, you can do it yourself. That’s what I do.
You know what? I really love trading options contracts. I opened a TD Ameritrade account, and I put 10% in this category. It’s not about the market, brothers. It’s not about making a bunch of money. I don’t do it to make money. I don’t get emotional about this account. I just enjoy trading it. It’s fun. If the whole market tanked and I lost everything, then so what? Who cares, right? I live on 40% of my income. This is just for fun. This is just for fun. This is 10% of my money that’s just for fun.
I mean, it’s real money. Don’t get me wrong, it’s real money, about as real as money can be, money being what it is, a thought in and of itself. But I don’t take it seriously. This is not a serious account. I know some people take their investments really, really seriously. It’s like, “Oh, it’s my retirement account. It’s my future account. It’s what I’m going to live on when I retire. I have to take it seriously.” Then when the market tanks, they get all upset. It’s because there’s too much fear. There’s too much of that poverty mindset.
Don’t take it too seriously. This is not a serious account. I would offer two things for this. First, that if you’re already investing in a 401K through your company, that you don’t add another one. You can if you want. You can have your 401K and then you can do another investment account if you want to play with options, like I do, if you want to buy equities, or companies, invest in Ford, or GM, or Tesla. Those are all car companies. That’s weird. You want to invest in IBM, or whatever, like Apple and Google. It’s whatever.
Number two, that if you decide you have someone else manage this money for you, that you really don’t take it too seriously, right? You don’t call them up every week and say, “Hey, how’s my money doing?” Just let it be there. It is what it is. It’s all speculation. It’s all the future. We don’t know what’s going to happen in the future, brothers. At any time, the financial market could collapse, or change. Don’t worry about it. It’s just money. I mean, literally, it’s just money. You have your skills. You’re living on 40% of your income already. Doesn’t matter what happens.
[0:27:03] KA: Speaking of that, here’s another account you could try. If you wanted to, you might have a crypto category. Whether or not you believe in cryptocurrency is up to you. These are all just suggestions. If you do decide to open a cryptocurrency category, treat it like the investment category. Don’t take it too seriously. It’s all speculation. Personally, I’ll be personal, I’ll be vulnerable with you guys. I have one of these. I lost a lot of money through having my account with a third-party institution. When that institution was, basically, went belly up because of fraud, I lost a chunk of wealth and I learned my lesson on how – and now I have it all in my own personal ledger wallet.
I don’t invest in crypto to get rich. I’m not a trader. I’m not a crypto currency trader. I don’t have that mindset. It’s not about making money. I invest in it for idealism. I believe in an ideal humanity. I believe in a decentralized financial system and deflationary currency. I’m investing for the purpose of throwing in my vote for a better future, a more transparent future. It’s not about making money for myself. Again, I live on 40% of my income. If the crypto market crashes, if it just goes belly up, if tomorrow, cryptocurrency just disappears, oh, well, it already happened once to me. I already lost a bunch of it through fraud. If it happens through a collapse, then so be it. It just means that humanity isn’t ready for financial honesty and financial transparency. It just means that humans still trust banks and governments over themselves and each other.
Now, brothers, look, there are a ton of other categories I have to offer. We’ll share them with you when you enroll in the academy. Really, you are only limited by your own imagination. 40% necessary expenses. Get your necessary expenses. Get your livelihood down to 40% of your income. Take 10% of your income and just give it away. Brother, I’m telling you, you will have 50% of your income, work with abundance, to just be abundant with, just to enjoy and have the experience of living with.
I want to offer you two more things before closing this episode. First, you can set these accounts up however you want. This is where the simplicity comes in. Like I said, you can mix whatever goes where, whatever how you do it. You can, for example, like I mentioned scuba, right? When I got cave-diving certified, that came from my growth account, because it was a new skill I was learning. I was enhancing my own development. I was building a new skill. Now when I go cave diving and I rent the gear that I need, it comes from my play account, because it’s an experience that I’m having. When I learned a skill, it was personal development. When I go diving, it’s now an experience.
If you choose to take guitar lessons, that would be from your growth account, because you’re learning a new skill. Buying the guitar comes from the reward account, because it’s a thing. It’s the thing, it’s the guitar. Learning how to work with these accounts is the first thing. It really does simplify your money management. Once you figure it out and gotten everything down to 40%, so you’re living on 40%. When you’re living on 40% of your income, you’re in the minimalism. You are increasing your wealth, because you will increase your abundance through the other means and as you increase your abundance.
Look, 40% of 100K a year means you’re living on $40,000 a year. Now, when you increase your abundance and you start having 200,000 flow through, then that account naturally goes to 80K a year, because it’s still the percentage. It’s still the 40%. I’m going to rise. Your wealth is going to rise as your abundance rises. Your abundance is going to rise as you work with the system. How you manage it can be through various bank accounts. You can have different bank accounts with each with their own debit card. You can have five or six different checking accounts and they’ll have their own debit cards, or you can use various credit cards and pay them through a one bank account.
The management comes from which cards you use for what category. That’s what I do. Not only is it really easy to know which card is which, like this is my play card. This is my personal growth card. This is my reward card. It also allows for each card to have different benefits. Some cards have points, some cards have airline miles, and so on. It’s beautiful. I get the points on top of it.
The second thing I want to mention and close with is this. It’s all about developing a wealth mindset. It’s all about developing an abundance mindset and money simplicity. Brothers, you got to do the cognitive work as you practice changing your behavior. It’s like the diet example I gave you earlier. If you just follow a meal plan without changing your beliefs, then once you hit your target weight, or once you complete your chosen time period, you’re just going to revert right back to where you were. The mind will always create the result and the result has to match the story.
The wealth mindset is developed holding on to percentages. Don’t make it amounts. Don’t say, I’m going to put this amount into my necessary. This amount into my play. Keep it percentages. That way, as you work on your abundance mindset, as your abundance increases, your wealth will naturally rise. The more flow you bring to you, the more you are adding to the account, because of the percentages remain the same. That’s what I was saying earlier. 10% of 10K is a 1,000 bucks. You make 10K a month, then a $1,000 goes into play, right? It’s 10%.
As your abundance increases, more flow will come into your life. Saying, more flows. Now you’re making 20K a month, right? Because your abundance. Abundance means flow. It means what’s coming in. If it’s coming in then to be in abundance, it means it has to go back out, so you keep the percentage the same. 10% of 20K is 2K, $2,000. Now $2,000 goes into your play every month. $2,000 on experience a month, bro.
I mean, you’re living on 40%. If you’re making 10K a month, you’re living on 4K a month. When your abundance increases, now you’re living on 8K a month. Your necessary expenses are also increasing. If you have an investment account, if you have a reward account, then all of that goes up. That’s why your wealth can increase when your abundance increases, but you’ve got to have that abundance. The abundance is what will change the wealth. The shift in abundance comes from the give account, which is why it’s so important. It is a must. You have to be able to let go. You have to be able to be free with your spending, with your giving.
[0:33:11] KA: Don’t hold your breath. You don’t hold your breath. You don’t take in a deep breath of air and then hold your breath because you’re afraid of not being able to take another breath. You know that there’s going to be another breath. It’s like the apple tree I mentioned to you guys last week. The apple tree does not hang onto the apple out of fear that another one is not going to grow. When it’s time for the apple to fall to the ground, it drops, because the apple tree knows it’s going to produce another. That’s what allows it to produce another. The ability for you to inhale again requires you to exhale. The ability for you to have more wealth flow to you, requires that you flow it out.
Finally, money simplicity. It comes to the system itself, as well as the 40% of income going to unnecessary expenses. Minimalism and simplicity are not the same as poverty. In fact, the opposite is true. People who have a scarcity and poverty mindset are the ones who live outside their means and buy things that burden them and overburden themselves with more and more stuff, with more and more unconscious energy. Be conscious with your energy, your money energy and the energy you have around you in the form of material objects.
Like I said, brothers, I still deal with a poverty mindset of my own from time to time. When I fail in my own system here, it is by giving too much. I know it sounds wild, right? Oh, you’re a failure by giving too much. Well, that’s the thing. That’s what the mind does to trick. You see, I will give more than 10% of my income, because I feel the burden of having too much wealth, of having too much money. That’s my childhood. My childhood subconscious programming is to not have money, is to have poverty, to live in poverty. My mind conceals the subconscious programming as generosity, right? Oh, I’m just more generous.
Really, it is just a poverty mindset. My action trying to create a result that matches the story. The story is a poverty story. My action is to give more away, set my result, means that I have less wealth. This is why it is so important to hold those percentages. Stick to the percentages until you have changed your belief system. That’s why it’s so important for me to hold that 10%. I’ve got to keep 10%. The moment I start giving away 20%, I know it’s just my story. It’s just my subconscious programming. It’s just my poverty mindset.
I could easily give away more than 10%. Like I said, and I’m going to offer this to you and all the students in the academy. Make sure that you’re still enjoying your own life. If you do choose to give away more than 10%, make sure it’s conscious. That’s what I’m telling you. I will do it subconsciously as a way for my result to match my story. If you want to put 20% into your giving account, that’s fine as long as it’s a conscious thing. You’re doing it not because you’re trying to match a poverty mindset. Set up your categories in the way that serve you. Don’t allow anyone to judge your categories, brother, including yourself.
You know what? If you want to put 20% into the play account, then go for it. If you want to put 20% into your reward account, then go for it. If you want to put 20% in your investment account, then do it. Just remember that it’s not there for you to feel safe, or financially free. That comes from your thoughts. That money could be gone at any time. You’re living on 40%. This is all just a way for you to have fun and enjoy and not take life too seriously. I get into trouble when I start giving away 20% to 30% or more of my income. Because for me, it’s all about watching that beta condition around poverty and offloading this wealth to return to the way I grew up as a kid. That’s why I got to stick to 10%. The percentages are so important, and they are what make money management so simple and so fun.
That’s what I got for you today, brothers. We’re going to keep talking simplicity next week when we get into food and time. Until next week, I love you and elevate your alpha.
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[0:36:55] ANNOUNCER: Thank you for listening to this episode of The Alpha Male Coach Podcast. If you enjoy what you’ve heard and want even more, sign up for Unleash Your Alpha: Your Guide to Shifting to the Alpha Mindset at thealphamalecoach.com/unleash.
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