Ready to watch this entire course?

01) Getting Unstuck and Breaking Free of the Earn-Spend Cycle

Being able to quit your job and pay your bills with passive cash flow is the dream – but there are several steps that you should take before quitting your job.

This course goes over identifying and investing in passive income assets and the attitude that you need to have to be successful.

Hello, and welcome to this video program on how you can break the earn-spend cycle, how you can take charge of your life, and how you can build everlasting health. My name is Jack Bosch, and I am the creator of the Forever Cash Program, “Forever Cash” book, as well as this further-leading program, and I’m also your host on this program. First of all, I wanted to thank you for purchasing my book and investing in this program here. So, if you have already read my book, then you probably are already familiar with the concepts that we are going through and the steps that I’m describing in this program. But if you haven’t read my book yet, or perhaps you haven’t received it yet, you bought it online and it hasn’t arrived at your doorsteps yet, then I want to give you a quick summary about what it is that makes in my mind the Forever Cash concept very very special.

 

Well, first of all, as you probably have seen in the videos leading up to this purchase, that most people are kind of like stuck in this almost like hamster wheel that I call the “hamster wheel of financial hell” of literary earning to spend, earning to spend. So you try to get a good job, you try to get a good education. There’s nothing wrong with that. And then you go spend the money. So you buy a house, and perhaps you get married, you have a few kids, and soon enough you realize that pretty much you can’t earn enough money, or you feel like you can’t earn enough money, because everything goes towards all these expanses. It goes towards your house, it goes towards the cars, it goes towards the vacations, it goes towards school, it goes towards day care, all those different things and you seem like you are treading water. You seem like you’re not getting forward, you are not.

 

Well, I got good news. There is a way to actually break that earn-to-spend cycle, because your money that you’re actually making in your job is actually not destined, is not designed, it should not be spent for all these expenses. Instead, the money that you make in your job, or at least a portion of it, should actually be used to create more money with it, to invest in something that brings more money ideally forever, but if not forever, then ideally in a way that that creates more money and that creates more money, so at some point of time you can put that into something that generates money that comes in for a long time, what I call temporary cash, or something that creates money forever, which is basically Forever Cash, right? So that’s what we’re talking about.

 

Now, as I say in the book, not all cash is created equal. Now if you look at a 100-dollar bill, and a 100-bill, if you have three 100-dollar bills, they all look the same. They’re all green, they’re all made of paper, and they all buy you the exact same thing. They buy you a dinner for two or three or for four, depending on where you go. They buy you, I don’t know, an electronic toy, they buy you a tank of gas or more than a tank of gas, depending on which car you drive, and so on.

 

But still, is it the same? No, it’s not the same. It’s not the same, because it really very much depends on how that money was generated, and not only that, but also how often it comes back to you. So for example, if you go work somewhere and you get paid $20 an hour and you work 5 hours, then this $100 represents 5 hours of active work. Once the work is delivered, the $100 is there, the $100 to spend. That’s it. In order to get another $100, you got to go spend another 5 hours working.

 

Now, on the contrary, if you look at temporary cash as well as Forever Cash, it typically has something to do with recurring income. It can be passive, it can be somewhat active, but it still is recurring. So for example, if you are a consultant, if you do something where you get a contract for two years, and it took you 5 hours to secure that contract, and now for the next 2 years you get $100 or $1,000 let’s say a month and it takes you perhaps 5 hours month to manage that or deal with that, not only have you just right now increased your monthly income by a thousand dollars, not only have you increased your hourly income to $200 per hour, because now the equivalent of the thousand dollars a month that you get, only takes you five hours. That’s $200, times 5 is thousand. But also, you have created something that is recurring. Now not forever, but for two years.

 

So therefore if you take $100 of that and you spend it, guess what? It’s not a big deal, because next month you get an extra $1,000, of which you can again take $100 and spend it on something else. So without you actively having to look for another customer, the money keeps coming in. Not totally passive, not totally without any effort, but still the money is destined to come back to you again.

 

Now, the last version is Forever Cash, and Forever Cash is literary money that comes into your bank account whether or not you do anything, month after month after month. Now, that could be something like dividend stock where you basically buy the stock. You don’t have to do anything after you own the stock, yet you get quarterly or semi-annually, or annually if it’s a publicly traded stock, typically only annually, get a dividend. It’s cash into your bank account.

 

Now, dividends are typically not very high, and you need to invest quite a bit of money to do that, but it’s just one example of that. I personally love real estate. Now, I also love online marketing, I also love network marketing. I love all these different ways, because what you do there is you set up something that once it’s set up, it spits out money in many cases forever.

 

So let’s take easy example that anyone is familiar with, a rental property. You buy a house. Let’s say you buy that house for $100,000. Well, if you buy that house for $100,000 and you have $400 mortgage on it, with current interest rates that’s actually quite possible, at the end of the day you rent this thing for a thousand dollars. Now, after including all expenses, you probably have $400 a month positive cash flow from that property. So that’s what we’re talking about as Forever Cash.

 

Now, even if you hire property management company, they take $100, you still have a $300 a month positive cash flow on that property, meaning that forever, for as long as you own this piece of real estate, you will receive $300 in there. A property manager takes care of it, you basically do absolutely nothing. You just wait for the check to come in.

 

Now, in this concept, how does that compare to actually actively buying things, taking your income and spending it right away in the different stores, on the different toys and on cars and so on. Well, it compares such that if you instead of taking your money and throwing it out on stuff that loses value, if instead you take that money and put it into something that either gains value, but most importantly puts out Forever Cash in your pocket, soon enough you can go and take in this case the $300 or $400 positive cash flow from that rental property and go buy with that money the car that you want. Save up for a year, then take that money, go down to the store, buy yourself a $30,000 or $40,000 car, put the down, or perhaps you wait a couple of years and have enough money for the down so that you only have a $400 monthly payment on your car, and therefore your Forever Cash source pays for your toy.

 

And once the toy, in this case a car, once the car is paid off, guess what? You still have the cash flow source. That is really one of the core concepts that I want to share with you in this program, because literally, and the fact comes that people say, ”Well, I get money. I need a car,” and certainly you do need a car, so go buy yourself a car.

 

The question is, what money you should use to buy that car? And most people use their active income to buy the car, and by doing that, they actually set themselves back financially, because now instead of…they have taken some of their savings, put it down on the car, and on top of it they have a new expense source now instead of having created first an income source that then pays for the expense so after the expense is done and worthless, the income source is still there. That is really one of the key concepts.

 

Now, in order to get there, I fully understand. You right now are probably in situation, like most people are, that at the end of the month there’s not that much money available. Right? There’s not enough money available to save for retirement, there’s not enough money available to invest into Forever Cash assets, and that’s the actual tangible thing that we need to fix, and that’s the piece we are going to fix throughout this program that you just purchased. And I am super excited to guide you down that path. But first, I want you to really understand the philosophical difference between going, taking your active money and spending it, and taking your active money and investing it, and therefore getting cash flow forever coming in that then pays for your lifestyle, and soon enough, in matter of a few years, has a potential of actually elevating your lifestyle way beyond what you currently even thought possible.

 

Now, I am not just talking about this as rah, rah, as something that I just know the theory of. As a matter of fact, I know this from my own personal experience. I came to this country in 1997 with just literally 2 suitcase, a bunch of student debt, and say enough money to last for half a year in college here. I was here for a year to finish my college degree. I still had to figure out how to make the money to survive the other half a year. I figured out a way by getting a job in a college university. But I literary started with nothing, with bad English, and with no experience how things work in this country. Yet, a few years later, after having worked for a company for a few years, got sick and tired of that, I actually moved forward and realized this concept.

 

Once I finally understood how these things work together, and a big factor was that I remembered how some of the generationally wealthy, these people that are wealthy for many, many generations, for many, many years, not just years, but where they are wealthy, their kids are wealthy, their grandkids are wealthy, how they actually were able to do that. For example, in Germany there’s still a lot of old money, meaning a lot aristocracy. The aristocracy has lost most of their political power, but they have not necessarily lost all their financial power. There’s still families out there that are worth millions and millions and millions of dollars, and they have been worth that money for many, many generations.

 

Now, what I realized what they have been doing is they are not selling their acreage, they are not selling their houses, they are not selling their businesses, they are not spending their assets, they are living off their assets. So obviously, they had their assets for generations, so the people living today didn’t first have to buy their assets. So yes, if you want to live that lifestyle and if I want to live that lifestyle, we first have to create these assets. And once I realized that, that’s when my wife Michelle and I, when we got together, discussed how we best could do that, went on a quest to find our source of wealth, because in order to reach this, because we were exactly where you are.

 

We had a whole bunch of debt. We had a house debt, we had car debt, we had even debt on furniture, and so on. The key was from the moment that we figured out how to actually get this done to the moment that we were financially independent only took less than two years for us. Now, how long is going to take for you? I don’t know. It might take you longer, it might take you shorter. It depends on what vehicle you chose, how diligently you apply this, and these are basically the two factors, and how you really much internalize the concept that I just talked about, and that is all through the Forever Cash book.

 

So the key here is I understand when I started I had no money. When you start, perhaps you’re at that point you don’t have that much extra money, or perhaps you have a great income, but at the same time, even though you have a great income, you still have nothing to show for it. Perhaps you feel you have golden handcuffs. You are handcuffed to your job that pays really well, and yet at the same time all the money goes out the door, and you don’t know exactly where it goes because you’ve got not much to show for. Believe me, I’ve been there.

 

So the key to making this happen is actually playing offense and playing defense. It’s playing offense and playing defense. So what I mean by that is we got to look at your expenses. Now, I’m not a big fan of you cutting your credit cards and cutting out Starbucks and only living on ramen noodles or something like that. No, this is not what this is about. This is not just to get out of debt program, because getting out of debt doesn’t really bring you forward, and also, if you cut all the financial joys out of your life, all the stuff that costs money but that doesn’t necessarily bring you forward, like your cable TV, and you name it and so on, it’s going to take the fun out of this process for you.

 

This is not about cutting all the fun stuff out of your life, but it is of something, one aspect of it is about being smart in your life financially. So therefore, in some of the next modules we’re going to look at your expenses, and we’re going to actually talk about those, and then the other part we’re going to talk about is this playing financial offense. And financial offense means finding new and additional ways to expand your means, making more money. But the key here is to then not just take that money and blow it on another car, but instead taking that money and then applying it to Forever Cash investments.

 

And that leads me to the next part that we’re going to cover in this program. What are some of these investments, how do you find what are you good at to make extra money, and then how do you actually know how to tell a good investment from a bad investment, and how do you invest in something that actually does bring you forward? Because the sad news is that most people talk about investments. They’re investing of things that they should really be talking about expensing or expense stuff. They call stuff “investments” that are really not investments – they are expenses.

 

Like people talk about, “I’m investing in a new car.” No, a car, unless it is a rarity collector’s item that goes up in value, it’s not an investment. It’s an expense, a car. Or they say, ”I’m investing in a new iPad.” Well, no. An iPad is not an investment. Unless you need it to run your business and it actually increases the business volume, it’s not an investment. It’s an expense. If you use it at home to play games, it’s an expense, and so on and so forth. So we’re going to look at that in more detail, and I’m going to walk you through step-by-step processes of how you can figure out what you’re good at, where you can make more money, and then also how you can invest that.

 

But in this first video I want to actually talk about a few more of the fundamental things, because one of the things that’s holding a lot of people back is actually their beliefs about money. Now, let me ask you, did you grow up with any of these kinds of words of like that money is bad, the money is the root of all evil? Or even if you don’t believe that, have you ever seen somebody drive around in $400,000 car, and you kind of scoffed at them, and it was like, ”Who needs a car like that?” Have you ever thought about that, something like that, or have you ever heard about somebody that has like $100 million or a billion dollars, and yourself, you’re thinking, “Oh wow, how cool. I want to have that too.” You thought, “Man, who needs that much money?”

 

If you have thought about who needs that much money, then somewhere you have a belief that basically says there is such a thing like too much money. And the question is first of all we need to find out where that threshold is for you and where this comes from. It is not going to be some kind of rah, rah kind of thing. There’s just going to be clear-cut strategies to uncover a few beliefs and then some strategies to make sure when those come up you can actually be aware of them and slowly over time change them. That’s all, because if you think there’s something like too much money, and if that too much money is just a fuzzy kind of belief, and you don’t know exactly what that number is, then you’re going to have a hard time having more money and having more money around you, because your subconscious is going to say, ”You know what? If there’s so much money, let’s get rid of it.”

 

And I know people that every time they have money in their bank account they have to get rid of it, because their subconscious just can’t stand having money in a bank account. And if you are perhaps listening to that and you find yourself smiling because you look at your bank account and it’s just like my bank account was before I started this process, which for a long time it was at zero, and only after I discovered this I actually started going up quite rapidly, then welcome. Welcome to the club. I was there, perhaps you are there. So it’s time to change it right now.

 

So what we’re going to do right now is we’re going to actually going to switch to my computer, and I’m going to show you some exact strategies on how to actually deal with all of this. All right? Okay. See you there.

 

Alright then. Welcome again to the Forever Cash Success Formula and welcome to my computer. And now what we’re going to is we are going to go through some of the concepts I already talked about and talk about, as I said, more that mindset thing and the things that you need really as a foundation to make the Forever Cash principle work in your life.

 

Alright. First of all, the Forever Cash philosophy and strategy is about generating financial independence forever in a way that does not include risking at all, as I’ve seen so many times, and by applying just a few steps that literally everyone can do, and doing this in a time period that is actually reasonable. Now, what time period are we talking about? Well, it depends on how dedicated you are, right? It took my wife and me 18 months to basically be able to quit our jobs and to have more money from our jobs come in to us than we actually were earning in our jobs. And then it took me just a few more years afterwards to really put everything in place and be in abundance, financially independent forever.

 

Now, so therefore, how long it is going to take? Well, it depends on your individual situation, and in this program right now, in the Success Formula Program, we’re going to go step by step through different scenarios and so on, but some will take a year, two years to put this in place, because they’re just going to go for it. They’re going to pull out all stops and they’re going to do everything I tell you to do. And some will take 5 years, 10 years, really, and as a matter of fact, some people will listen to what I say, tell me this makes total and absolute sense, and then not change a thing in your life.

 

Now, I hope it’s not you. I hope you are the person that says like, “Well, at least I’m going to do like half of what Jack says.” And then it might take you 5 or 10 years to do that, but hey, ask yourself always the question, where am I going to be in 5 or 10 years if I do absolutely nothing? So any progress is good progress. If the result of this is that within two, three years of now you just have couple of thousand dollars in Forever Cash coming in as a bare minimum, then will that help you in your retirement? Will that help you pay the bills? Will that help you pay your mortgage now and the car payments and things like that?

 

And the answer is absolutely yes. So any step that you do is better than no step. So really, let get this started with making a commitment for you that you make a commitment to actually get this started the right way. Okay?

 

So also, reasonably, I think it can be done in three to five years to replace your job income with Forever Cash. That should be really reasonably possible no matter where you are right now and no matter how much job income you have right now. And then, in another two or three years after that, you should be able to be Forever-Cash wealthy, meaning you will be spend what you want, when you want, have the cars, houses, boats, and vacations you want, literally go blow the money that you want every month, and not have to work for that money actively anymore, because every single month it’s being refurnished, and it comes again into your bank account. That’s the goal.

 

So if you’re fast, you will do that in five years altogether, and if you’re slow, well, then you take longer than that. Let’s keep it as simple as this. But reasonably between three to five years. If you just do what I tell you to do diligently, you should be able to replace your job in three to five years easily, and within a few years afterwards be really, completely, financially independent.

 

Now, if we compare that right now to people that risk it all, that go put their life savings into some kind of a startup, into some restaurant or something. And then they’ll plan it out, and they work days and nights and weekends and everything. And then, the thing either fails or is a mediocre success or is really a success. But 9 out of 10 restaurants fail. Right? Nine out of 10 startups fail. So if you do that instead, chances you are also going to spend 5 to 10 years, and in 9 out of 10 cases, you will have lost all your money.

 

This is not what we’re talking about here. This, the Forever Cash Success Formula, the Forever Cash philosophy, the Forever Cash strategy is something where you can diligently and consistently build up wealth month after month, year after year, without having that risk that you will lose it all in the process. Okay? So that’s why I like it, that’s why I applied it, because I’m in my core a conservative guy. I don’t want to swing for the fences usually.

 

I’d rather win the game by having singles and doubles and an occasional triple, than by just striking it out and striking out 9 out of 10 times in the hope to get that one home run. Right? We are primed to go after that.

 

So okay, the principles about Forever Cash. It’s not about what you make. It’s about what you do with what you make. There’s several principles about that. Let’s go quickly through them.

 

Principle number one is really one of the core principles: it’s not about what you make. It’s about what you do with what you make. Therefore, keep your expenses low, and, well, obviously, it matters what you make but as you see in a second, there’s whole bunch of people who’ve made lot of money but also blow it all.

 

So it’s not only about what you make, but making about your money is obviously important. So therefore, it’s about building extra income without you having to do a full-blown business, and it is about keeping your expenses low, and it is about reducing your personal expenses. And also, another aspect of this Forever Cash principle is to invest. The key aspect then is invest the excess money that you have in or that you build up, even if you don’t have it right now, perhaps into Forever Cash income sources that will pay you money forever. Right? Then you repeat this again and again.

 

So let’s talk about the principles. Forever cash principle number one. The money of mountain verses the stream of income. Right? Again, a lot of people think it’s about making a million dollars.

 

You ask anyone. Just play the game. Go ask anyone at your job, friends, at the church, ask them, “Hey, how much money you need to retire?”

 

People will throw random numbers at you, random numbers like $10 million, $5 million, $20 million. Well, how do they come up with that idea, with that number? Where do they pull that number out of? Here’s the thing. There’s plenty of people who have burnt outrageously large amounts of money. Let’s look at a few of them: Mike Tyson, Scottie Pippen, Curt Schilling, Vince Neil, even Michael Jackson.

 

If you look at it, Mike Tyson burnt $300 to $400 million dollars. Scottie Pippen, wingman of Michael Jordan, burned to over a $100 million. Curt Schilling, baseball player, pitcher with the Arizona Diamondbacks, won the championship in the World Series in 2001 and then again with Boston Red Sox in, I don’t know, 2007 or ’08. So I’m sorry. Forgive me please, Red Sox fans. I live in Arizona. I don’t know exactly. I don’t follow baseball that much.

 

But he won it twice, and he made over $60 million. Lost it all within two to three years after retiring. Vince Neil, famous rock star, lost it not just once but twice he lost all his money. And Michael Jackson, even though Michael Jackson is actually a special case. But I did want to mention him here, because what makes Michael Jackson special? Michael Jackson lost all his money. When Michael Jackson died and passed away, he was millions of dollars in debt. Now, millions of dollars in debt, yet outspent his vast income of hundreds of millions of dollars.

 

But you know also what Michael Jackson had? He had, because of his art, because of his CDs, because of his songs that he had written, he has Forever Cash. So what he left behind is Forever Cash, and he left behind literally all these CDs that the moment he died, guess what happened? All of his CDs and all of his LPs and his records jumped off up on the top of the bestseller list and literally paid off his debt for him. Literally now his heirs, the debt has long been paid, and his heirs receiving millions of dollars every single year from his record sales and from any kind of other sales, memorabilia and his name rights and so on. So Michael Jackson, even though he burned through all his money, he actually did create Forever Cash for his family.

 

Now, again, why are these people burning through it? Because they lacked Forever Cash. Even the richest people in the world are, well, it’s hard to spend billions of dollars, but even some very successful people that made millions of dollars, like Mike Tyson and so on, they spent that money faster than it was being replenished They had $100 million in a bank, problem in a checking account or something, and that money didn’t generate more money than they spent every single year, so the mountain of money that they have built was dwindling very, very fast.

 

So here’s the thing. In life, we are not been taught to generate Forever Cash. The vast majority of people live on active income or Social Security, which by the way, can be reduced any time by the government. Government can decide, “You know what? We are getting through old as a society. We don’t have the money anymore. We’re going to cut Social Security by 20%.” Can you do anything against that? No, you can’t.

 

You know what? That’s happening in Germany right now. Germany is always, in all kinds of consumerism aspects, is about 10 years behind the United States. Now, I am from Germany, so I’m kind of still keeping an eye on Germany, and I’m here in this United States of America since 1997, and so on. But I always keep an eye on Germany, because my parents are there, my brother’s there, cousins are there, friends are there, and so on.

 

So I always read the German newspaper and so on, and what I see is even though Germany follows the American principles in all the consumerism and all the fashion and a whole all bunch of things like that, what actually is happening in Germany in terms of society is exactly what’s going to happen to United States right now. And what’s happening there is people don’t have as many kids anymore, people are aging, and the population as a general in Germany is aging rapidly over there, and not enough Germans are coming in and not enough immigration is coming in to actually buffer that.

 

The exact same thing is happening in the United States. We are just 10 to 15 years behind Germany on that end. And what’s happening in Germany is that, guess what? Social Security is being cut. Social Security is being cut, or stagnates, which in fact means it’s being cut because of inflation on an ongoing basis. Right?

 

So the fact is most people have no control over our future income. We are depending on pensions, we are depending on the government, and if the company that has a pension that you rely on goes down, often so goes the pension. Literally, when the city of Detroit declared bankruptcy, thousands and thousands of people are looking and started being faced with the possibility that their pension that they were relying on is being drastically reduced. And it’s happening in every city that declares bankruptcy, and guess what? More and more such cities are going to declare bankruptcy. If the company goes down, so goes the pension. If the government runs out of money, so does Social Security.

 

So the key is we are living from the hand in the mouth, and we are not looking at our future in terms of generating Forever Cash. So instead of providing for our futures by generating Forever Cash, what people are taught is most people are taught to make money so they can spend that money. That’s what I call the “earn-spend cycle”.

 

So every time they make money, guess what happens? They increase their lifestyle. They buy a new house, they move to a larger house, buy a new house, move to a larger house. Same thing, right? They buy a better, more expensive car, they buy a new LCD or plasma TV, they buy a new couch, they take longer vacations. Bottom line is they do whatever it takes to spend that money.

 

Just literally, listen to what happens for example when there is some kind of a lottery thing going on where one of the lotteries around the United States is like $400 million, $500 million in the jackpot. Radio hosts, in their radio shows, they actually talk about that, and they ask people to call in. They always have to find a reason for people to call in. They ask people to call in, and ask them, “What you would do with the money?”

 

I’ve listened to that again and again and again. Never, not a single time, have I heard anyone say, “You know what? What I am going to do with that money is I’m going to take it and I’m going to invest it in something that brings me Forever Cash so that I don’t actually ever have to do anything anymore.” Instead, what they are saying, they say like “I’m going to buy a house for my parents, I’m going to have a house for myself, I’m going to buy a big car, I’m going to buy a boat, I’m going to buy all this furniture and stuff like that.” It’s all stuff that is money out, no money coming in. Right? I hope that make sense.

 

So all these things, that’s what they always say. But what happens if you take all the money you earn and spend it on a bigger house, a faster car, and a more expensive vacation? The fact is you’re not really moving forward. You’re in a hamster wheel that I call the “financial hamster wheel of hell”, because the hamster wheel becomes bigger. It’s not like you’re running faster.

 

The hamster wheel becomes bigger and more stressful, so it feels like you have to run faster, because everything becomes bigger around you. It feels like you just run, run, run, run, run, and with nothing to show for. All you have is a bunch of toys, a bunch of expenses, and a bunch of stuff that afterwards, after a few years is worth nothing and needs to be replaced.

 

Now, if you look at your life right now, if this is your reality right now, then I am really glad that you entered this program, that you got this program, that you are listening to this and watching this program. Okay?

 

Because here’s the thing. The “earn-spend cycle”, also known as “hamster wheel of hell” – when you’re spending all your money, when you spend all your money, it means only one thing: you have to keep working harder than ever, because as you upgrade your lifestyle, your expenses increase, and you are forced to work more in the later years of your life when in reality what you really want to do hopefully or probably is, let’s step back a little bit in the later years of life, right? So retiring therefore is harder, because you have to replace much more income than when you were younger and when you didn’t have that much.

 

Now, here’s the thing, what people think when they realize this, what they think is, “Oh well, I need to downsize my life. I need to sell the house, I need to move into a one-bedroom apartment, I need to sell the Mercedes and buy a little Geo or something like that.” And you know what? That’s not the solution. That is one solution, obviously. But that’s the poor solution, and I don’t want you to be poor. Right? I don’t want you to play that game.

 

I want you to have it all, and having it all is possible. So what’s the solution? The solution is Forever Cash and Forever Cash assets. Forever Cash assets are assets or things or investments that you create, place, or generate once, but they pay you forever on a monthly, quarterly, or yearly basis. There’s some of them that pay you on a daily basis too, but usually they pay you on a monthly, quarterly, or yearly basis, ideally without requiring much involvement or effort from you after you have put them in place.

 

Now, there is a little effort involved in order to put them in place. So this is not something you wake up tomorrow and you’re wealthy. No. This requires for you to understand number one, that money that you actively make is not designed, is not meant to be spent on stuff that doesn’t bring you forward. It’s not meant to be spent on a new flat screen TV, it’s not meant to be spent on a new car or even on a new house. What it’s meant to be done, it’s meant to be spent on investments that bring you more money so that ultimately you can use the money from your investments to pay for the flat screen TV, pay for the Mercedes, and pay for all those toys that you really want.

 

And the key is when you turn things around, instead of using your money to buy the stuff, you use your money to buy investments that then give you the money to buy the stuff. Then once the stuff is worthless, you still have the assets giving you more money to buy more stuff or to replace the stuff that you want. The asset then will never go away. The Forever Cash will never go away, meaning that when the car is worthless, you can buy yourself another Mercedes without having to work a day in your life again.

 

That is the key. So what we are looking for is putting your financial independence in place that will pay for everything you ever wanted out of life. Okay? So here is something.

 

However, let’s talk about money for a little bit. So here are some questions to ask yourself to identify what you believe about money, because what you believe about money is actually very important in your quest to be successful. Here’s the question. Number one, what is more important, building up a million dollars in cash or having a $10,000 a month cash flow coming in forever? Question number two, what is more important, having $100,000 in the bank or in a long-term mutual fund or a 401K or an IRA investments that grows at 5% to 8%, or having a $1,000 a month coming into your bank account forever, based on what the $100,000 is invested in.

 

Which would you prefer, having the $100,000 in the bank or having it applied such that you get a $1,000 a month forever? What would you rather do, have a million dollars in a bank or have $10,000 a month coming in forever? Well, the answer to that question, I will tell you, what you have to fight against inside of you.

 

Now obviously I have set this up this already by telling you that cash flow is better than a mountain of cash, so you are already inclined to say that $10,000 a month is better and the $1,000 a month is better, but really, think about that in your gut. What would happen if you have literally a million dollars in the bank? Would you go, and if you have the ability to have a million dollars in cash, if you build up a million dollars in cash, would you go and buy yourself a house, a second house, a Ferrari and perhaps a Bentley for that, and then take a $50,000 vacation, or would you have the discipline to take the full million dollars, or perhaps leave 50 grand off to just go blow it on a big vacation, but take $950,000 of that money and literally invest that in something that gives you $10,000 a month so that from then into the future forever you can live on $120,000 a year.

 

By the way, I’m ignoring tax benefits here, depending on what you, or taxes generally, because depending on what you invest that million dollars into, you might not even have to pay taxes at all on those $10,000. There are some great tax strategies that can be done that we’re not going to talk about that right now, but just letting you know.

 

I’m ignoring this, because depending on how financially literate and financially smart you are, you can literary take that million dollars, convert it into $10,000 or more a month, and not pay a dime in taxes on it legally by just using what the tax law allow us to do. Or you can turn that into something that you pay taxes out of your nose. It’s up to you. All right? So if you want to retire now, the answer’s very simply the monthly cash flow will get you there much faster than piling up the money for later.

 

So now, I hope you understand that, but now, who is actually doing that? This is a concept that perhaps to you it makes sense, but if you look around in your neighborhood, probably nobody is doing that. Nobody’s doing that.

 

But then again, what does it mean that nobody’s doing that? Are they all financially independent? No, they are not. They are doing what everyone is being taught, is to earn to spend, earn to spend. That’s why they’re living with a living, that’s why they’re working at age 50, 55, 60, 65, or even 70. That’s why they’re stressed and getting heart attacks, because they are not doing that.

 

So who is doing that, and what are their results? Well, here’s the thing. Virtually every generationally wealthy person is doing what I just said. And what I mean by generationally wealthy people is people whose wealth lasts for their lifetime and for their kids’ life time and for their grandkids’ lifetime, etc., etc., etc. Right?

 

And here’s the thing. Who is this? For example, the aristocrats in Europe. Now, I am from Europe, I’m from Germany and in Germany there’s aristocrats all love the place.

 

They have been working and following this philosophy for ages. As a matter of fact, literally, they tell their kids, they teach their kids different than what the majority of people does. So they have been following this for ages, because for example, hundreds of years ago, in their case, they have acquired assets that pay them dividends cash flow month after month, year after years, for hundreds of years.

 

Literary, the cash flow that they build up from their assets, from the investments, that money is enough for literally be able to maintain their huge, beautiful castles. There’s castles there that cost millions of dollars a year to just maintain, to just constantly rehab. There’s constantly a construction crew going around those castles keeping them in shape, because there is weather and there’s…These are hundreds of years old. Something constantly needs to be repaired, needs to be done on those things, so they have staff on that just is in charge of keeping their house. In this case, even though it’s not a house, it’s a huge castle, up to date. They have to pay for that.

 

Then on top of it, what pays for that? It’s not their job. Most of the owners of these castles don’t actually have a job. Their job is to manage their Forever Cash and manage it part time, because at the same time they have boats in the Mediterranean, they have Ferraris that they drive. They are truly wealthy.

 

Now, what happens when they pass away? Is their wealth gone because it’s dependent on their income? No. They pass it on to the next generation, and their Forever Cash pays for all this maintenance, pays for the Ferraris, pays for the vacations, pays for the second, third, and fourth home in the most beautiful areas around the world. That’s the key here. The key to what they are doing is that they, number one, never sell one of their assets, or if they do, then only to roll it into another, better asset.

 

If they sell something that brings them $3,000 a month in Forever Cash, they might sell that, because they can turn it into something that brings them $5,000 a month in Forever Cash. If they sell something that brings them $100,000 a month, they would only sell that if they can turn it into something that brings them $120,000, $150,000, $200,000 a month. Right? They live off the cash flow their Forever Cash assets gives them, and that money pays for the maintenance of the castle, their Ferraris, their kids’ private school education, etc., etc., etc.

 

Now, what kind of assets do they have? They have a lot of real estate. That’s why even though you can do this with any kind of investments that you want to, I love real estate for Forever Cash assets. Making the money doesn’t matter. You can make the money whichever way you want to do. But once you have the money to invest in something, it needs to be something that is really hands up, and real estate is just a great thing to do this in.

 

So I would ask you to consider real estate, and later on we’re going to talk about multiple ways of real estate, because when you hear real estate that’s Forever Cash assets with cash flow, you might only think of rental houses. There’s a world beyond that. There’s many, many different ways you can actually have real estate and not have any maintenance efforts with it.

 

For example, just this one thing. You can have farmland and lease it out to the farmer. That’s been done in the United States all over the place, but here’s the thing. They have real estate, they have land, and they have forests, they have businesses and agricultural business, and so on, and today they even own golf courses, business investments, and still lots of real estate.

 

Today, let me mention one of today’s Forever Cash stars. As a matter of fact, in my mind it’s a Forever Cash star. Our example is the business owner who is smart enough to take some of the business profits and buy Forever Cash with it. Now, if you’re business owner listening to this, watching this, chances are that you are taking all the money that you make and either use it for your lifestyle or put it back into your business to keep the business growing, to keep the business growing, because after all, the business is your baby. You know what? That’s what it is for most busyness owners.

 

If they have a full-blown business, that’s where they put it, they put their money back in. Now, the smart business owners, when things are going well, take a little part of their profits and move it off the table and invest it in something that brings them Forever Cash forever, because once the business owner is ready to retire, he can do that, even if at that time the business is not doing that well anymore. Because do business have uptimes and downtimes? Yes. I know lots of business owners who by the time they want to retire, guess what? A recession hits, their business goes almost under, and they have to stick it through and have to carry that business through that recession, build it back up before they can sell it when they are 70 or 75 years old when really what they wanted to do was retire much, much earlier.

 

Here’s the thing. If you’re a business owner and you run a good business, take some money off the table when the business is doing well and move that into Forever Cash so that when things are going bad or when you are ready to retire, you can without having to rely on selling the business for a very big number. Right? He doesn’t really on a business anymore if he move a bunch of money into Forever Cash over time. He doesn’t rely on it. It is simple. Instead, he can simply retire on it.

 

Another Forever Cash star is the employee, a simple employee who takes his or her money and buys rental houses, for example, because with just a few thousand dollars, $5,000, $10,000, $20,000, often that’s a great way to invest with a really good return on rental houses. And there’s ways that you don’t have to manage them. You have somebody else manage them for you.

 

I have a bunch of houses. Some I manage, some property managers manage for me. And you know what? The property managers, if you pick a good one, you don’t even have to pay any attention to what you’re doing other than once or twice a month a quick email or a quick phone call. That’s it. Now, I much prefer during once or twice a month a couple of emails or a phone call than have to work 40 hours in a job. I don’t know about you, but probably I would think it’s the same way.

 

So also, who is doing that? The movie star Arnold Schwarzenegger. Now, you might think about whatever you want to think about his as a family person. But Arnold, as a Forever Cash example, it’s absolutely textbook, because Arnold came to the United States with nothing but muscles. Now I mean literally, no kidding. He was already very very big and muscular, and he came here because the market for bodybuilders is a much bigger in the U.S. than it was anywhere in the world, and probably still is.

 

He came to the U.S. with nothing but muscles. He earned a $100s any kind of muscle show he did. He literally toured to the United States showing off his muscles with a bunch of other guys, and he earned $100 a show plus probably travel expenses.

 

Here’s what he did. He actually laid bricks with a friend in like million-dollar houses. They literally knocked on the door and asked them if they have any kind of work, brick-laying work, yard work, or stuff like that. He laid bricks to make extra money. And then what he did is he kept his expenses low before he was even well-known as a movie star at all, and he invested every single dime that he could spare, he invested that in real estate in Santa Monica, California.

 

Now, at that point, Santa Monica was not what it was today. It was kind of like a little rundown, but he could see, or he had a hunch, or you could see that it was kind of on the up and up. So basically every dime that he could spare, he bought real estate in Santa Monica with. Commercial, residential, any kind of real estate he could buy. And therefore he became a millionaire and was financially independent before he made his very first movie. That’s what Forever Cash can do.

 

Literally, he came with nothing. To this day, he barely speaks English. Right? I mean here talking, a German-accent guy, about another German accent guy, but I have the illusion that my accent is better than his. But just kidding. That’s just side note here. But in any case, I still have the German accent. I always will have one.

 

But here’s the thing. It doesn’t matter if you have an accent, it doesn’t matter if you have money or no money or whatever it is. The key is this Forever Cash method works. It worked for Arnold, it works for you, and you don’t have it with real estate. You can do it with other ways too. Right?

 

So now you might be thinking, “Well, look at that. Arnold, okay, he’s the exception, but I don’t have any money to start with right now. Do I need to have a business, or does it just work like it did for Arnold?” Well, the answer is yes, it works like it did for Arnold if you follow the steps. It works like it did for me. I came to this country literary with two suitcases, a bunch of student debt, and enough money to pay for one semester of college, because I came here to finish my college degree.

 

I wanted to stay two semesters. I didn’t even have the money to pay for the second semester. I came up with that money by taking jobs in college and getting like internal jobs as much as it was allowed as an immigrant, because there are certain restrictions, and I followed all the rules, and so on. I ended up paying for the second semester, and then I ended up getting my first job, and I bought, my first car I bought for $900 here in the United States, an old ’83 Chevy Caprice. That was my first car.

 

And as a matter of fact, I didn’t even have a car in Germany. I came over here. My first car was an ’83 Chevy Caprice. I had no money, and I got my first job, and I had that job for five and a half years.

 

And then by the time that I started my Forever Cash path, I had more expenses than I ever had in my life. I had a house, I had married my wife, I had two cars. I had all those things. So I was exactly going down the route that everyone typically is going down, and then, it only took me 18 months to get out of there.

 

So here’s the thing. Do you have to have any money to start? Well, if you do, great. If you don’t, you can still get this done, and do you need to have a business? Now, I didn’t have one.

 

And do you need to have time? Well, let me tell you. When I had my job I worked literally about 60 to 70 hours a week, and we still got it done in 18 months. So no, you don’t have to have a lot of time. You need a little time. But we talk about in a later module about to how to actually make more time of what you have right now.

 

The good news is that the Forever Cash philosophy is a balanced approach, that’s really one of the most important things about it, that only consists of few simple principles that anyone can follow without your own business and in your spare time. So what you are about to learn right now here is how to make a lot of income that comes in without you having to work for it and how to maintain a great lifestyle while having very few ongoing liabilities and expenses and how to have that lifestyle of your dreams paid for without the stress and constraints of what typically comes with it. Okay?

 

So you can have this lifestyle of your dreams by following these simple cash, Forever Cash principles. Number one, you want to manage your expenses. You want to ideally reduce your expenses a little bit. We’ll talk about that later. Number two, you want to also reduce your personal debt, because your debt payments that you have to make right now are expenses, and we want to get rid of those so we can free up more cash.

 

Also, you want to make extra money. We’ll talk about that in detail, how you can do that part time without much effort. And also, how to invest, ultimately how to invest that extra money in Forever Cash assets. And then that passive income that your Forever Cash assets generate ultimately will pay for your lifestyle. That’s what it’s doing for me, that’s what it’s doing for Arnold Schwarzenegger, that’s what it’s doing for many, many people. Okay?

 

So, the Forever Cash concept, here’s the thing. A business is not for everyone, but Forever Cash is. Here’s what I mean by that. A business is not for everyone, but cash, Forever Cash is.

 

Here’s the thing. Often what’s been taught is if you want to make money, you got to have business, you got to start your own business? You know what? If you start a full-blown business with an office or with a storefront, with employees and with equipment and with all this kind of stuff, number one, it’s expensive. And number two, in order to run this business successfully, you need to have marketing knowledge. You need to be a good marketer.

 

Number two, you need to have sales skills. You need to know how to sell. Number three, you got to have management skills, because you have people working with you. You’ve got to manage them. Number four, you need to be able to do accounting or know accounting or understand accounting. Number five, you need to have industry knowledge, you need to know how things are done.

 

If you want to open a restaurant and you don’t know anything about the restaurant industry, good luck. HR management, you got to not just manage the people but know how to deal with them on a legal basis if they come to you with complaints. And more and more and more. Stuff like that is not for everyone. As a matter of fact, I believe that most people should not start a full-blown business right now. All of that stuff can be learned, but most people are not ready for this right now.

 

But here’s the thing, as I said, this is something you learn over time. If you really want to have a restaurant, then go work in the restaurant industry, learn the tricks of the trade, learn how to become a manager up there, learn how everything operates, and learn how the cost spaces of these restaurants are. What are their ratios, what is the percentage of the food cost compared to the sales cost of the food, what do you do in terms of marketing to get people in the restaurant, etc., etc., etc.

 

Learn that stuff, either by quitting your job and taking a job in that industry so that you still have income while you’re learning, or if you know somebody who has a restaurant, go work your weekends, work your evenings there so you learn that. Then go and start your own restaurant. That’s just one of the things. That’s one way to learn in real life.

 

But the key here is whether or not a business is for everyone. I believe it’s not. Forever Cash is for everyone, because here’s the thing. In order to generate Forever Cash, you don’t need a full-blown business to create the money. You don’t need to have a storefront and all those employees and things like that either to generate Forever Cash or to generate the money that you then put into Forever Cash. You can literally start with what I call a microbusiness.

 

As a matter of fact, some people are going to start by getting a promotion in their job. You can actually look to make more money within your job too or by taking a second job. Now, I am not a big fan of you taking a second job, because it’s taxation wise the worst kind of second income possibility, because now you get double taxed or you get taxed even higher on your second income, but what is an option is start with what I call a micro business, so selling stuff on eBay, or become a dropshipper, meaning that you just sell stuff on eBay but you don’t have to have it in your garage. You don’t have to even own it.

 

You just know that you open an account with people who drop-ship stuff for you, you sell it on eBay, they give you all the information about it, they perhaps charge you 20 bucks for it, you sell it for $35, and you get to keep the $15 dollars in between. All you do is put it on eBay, sell it, get the money, pass the lead on to the other guy and send them 20 bucks. Now you received 35, you send him 20. You made 15 bucks in the process. You can do that all day long.

 

You can also find it by finding real estate deals for yourself or investors. You can do microbusinesses. You don’t need to have employees to do a real estate flip. You don’t need to have employees to find a house that’s worth $100,000 dollars, or when the market says $100,000 that you can find it for $60,000, and then you can either pass on to an investor for $5,000 or $10,000 or you can flip it yourself for an extra $75,000 or $80,000, making $15,000 or $20,000 in the process. You can do this alone on a weekend and evenings. You don’t need a full-blown business.

 

Also, there’s vending machine business, there’s freelance work, there’s online stuff that you can do to make extra money consulting in the field you already specialize. There’s plenty of ways that you can make money outside of what you do as your job, but you simply need to learn how to see the opportunity and act. Right? So that was the concept.

 

Now, the next concept I want to share with you is that not all cash is created equal. So for example, here’s the deal. In my opinion, there’s three types of cash. There’s one-time cash, there’s temporary cash, and there’s Forever Cash. They look the same but they are generated differently. So if you have three pounds of money, 300 dollar bills, they all look the same, but they might not be the same based on how often they come and how they were generated.

 

So one-time cash, very simple. Most people work for one-time cash. They work once and get paid once. They work 40 hours and get paid 40 hours. It’s a one-to-one exchange of money for your time. Right?

 

So this is really, in most cases this is the worst way to earn cash. Now, there are some different qualities of one time cash. You can work for minimum wage for $8 an hour or you can do a real estate flip and make $50,000 in one flip. Both is one-time cash. You worked a few hours, you got paid for that hours’ worth. And if you work at McDonald’s, you work for 8 hours and for $8, 8 hours, you get 8 times 8, $64.

 

If you work 8 hours on a real estate deal and you make $50,000, you get much more per hour basically, but both have the same characteristics that you work once and you get paid once. All right?

 

So also, there is some real-world example of Forever Cash: working on the job on an hourly basis, getting a second job, fixing and flipping a house, doing your freelance project, or even having a yard sale, because even though you sell more than one thing, you sell a bunch of things, it’s still one-time cash, because once the stuff is out of your garage, you don’t get paid again and again and again for it. Right?

 

Temporary cash is already better. Now, temporary cash is defined by you work once and you get paid again and again over a period of time. The income will come to an end at a certain point. So for example, if you lend somebody $100,000 and then you get monthly payments from them let’s say for a year, and then at the end of the year you also get your $100,000 back, what happens is you created temporary cash. You did the action once of lending the 100,000, and you get money back for, you get income from it for 12 months, and then you get your $100,000 back.

 

So if you charge him 12%, you get a $1,000 at 1% a month. You get $1,000 a month, and after the year, you get your $100,000 back. So you made $112,000 out of $100,000. So it’s income, but you only put the loan in place one ton of time, and you get paid over 12 months once a month. That’s really cool.

 

Or if you sell a property or you sell financing, something I do a lot with my pieces of land. When I am land flipping, this is one of the ways I make money. I buy a $20,000 piece of land for $2,000, and I go sell it for $20,000 with a $2,000 down payment and monthly payments of let’s say $500 for 5 years.

 

Now, when I do that, I get all my money back at the beginning, and then I get a cash flow going for five years. But after five years, that cash flow ends. Now, you could also structure it with a $300 payment for 10 years, right? In that case you would get paid a little bit less every month, but for a longer period of time. But in any case, it ends after that loan is paid back.

 

Or also, if you create a contract, you sell a contract for a service, and then have the work for the actual service be outsourced. So for example, you have a family agree that you do their yard work. But instead you doing the yard work, you have somebody else come. You subcontract it and you have somebody else come every week and do their yard work, and therefore, they make some money, you make some money, but you don’t actually have to do the work anymore. And if that’s a contract for one year, then you get paid every month, and then afterwards it is done, right? So therefore you got paid every single month for a year.

 

Now, obviously, if you can make that contract to last forever, if that really is a monthly contract that just goes on and on and on, and as long as the subcontractor takes care of the garden well, the people will keep him forever. In that case, you have actually now actually taken something that was set up as temporary cash and turned it into Forever Cash. And Forever Cash is really the Holy Grail of what we are talking about. That’s why the name of the program, that’s why the name of the book, that’s why the name of our brand is Forever Cash, because you work once and you get paid forever. The income payment never ends.

 

So for example, rental real estate. Rental real estate, I love it, whether it’s commercial, industrial or residential, because here’s the thing. When you buy that building and you put tenants in there or you have a property manager put tenants in there, then they start making payments. And if they stay there for five years and they move out, then you put another tenant in there, and the cash flow comes in every single month literally for as long as you own that investment.

 

And why wouldn’t you own it forever? Why wouldn’t you pass it on to your heirs? Why wouldn’t you want to keep that? Now, there are certain reasons you might sell that building and buy another building for it later on, because that brings you even more cash flow, but bottom line is then you just rolled over from one cash flow asset to another cash flow asset, and that’s one way.

 

So rental real estate, dividend stocks, annuities, even though you want to be careful with them. There’s a whole bunch of bad financial investments that are being sold by financial advisers out there.

 

And there are actually real estate advisers, but also there’s financial advisers in there that we actually endorse that know what they’re doing, and they know how to sell you something and get you involved in an annuity that is right for you versus something they’re just making commission, because they’re not commissioned based. That’s the key here.

 

So annuities if it’s not land leases, royalties. Honestly, that’s what Michael Jackson is being paid for, Forever Cash. He gets forever royalties on the music that he created. Also, if you want to invest in businesses, then select the kind of businesses that can be managed by managers, that don’t have to be managed by you.

 

For example, the restaurant. In my hometown in Germany there’s a restaurant that does really really well, but the reason why it does really, really well is because the owners are so likable that everyone goes there to meet the owners. The owner sits down with everyone at the table, they know everyone. Every time I get there, literally the time I show up they bring me free beer, they bring me a bottle of champagne, they sit down.

 

I live in another country across the ocean. They don’t have to do that. I’m not going to bring in more business because they do that, but they’re just such nice people that everyone wants to go there all the time. But it also means that that business, even though it brings them a tremendous income, is not Forever Cash for them, because they have to manage their business, they have to be there every day.

 

So therefore if you want to have a business, make sure you design it such or pick it such that it can be manager managed, and usually that you should wait until you have the skills to run a business in a proper way. In the meantime, focus on the ways that you can just make more money, and then invest that in one of the other ways that are true Forever Cash assets. Okay?

 

So the next Forever Cash concept is actually the following. Financial defense is as important as financial offence. Okay, how to win the race? Well, here’s the thing. You want to become a lean, mean racing machine, driving fast towards the finish line of financial independence.

 

And how you do that? You reduce your expanses. Expense reduction is a key part of this concept. But without suffering. So I’m not asking you to sell your luxury home and move into a one-bedroom apartment, I mean unless you want to unless if that’s what brings you joy because it means to you that you’re advancing faster. Then go for it. But the regular person will probably not want to go that far.

 

Instead, what you might want to do is just reduce some expenses that you really don’t need, expenses that really don’t bring you a whole lot of value in your life. Like for example, you might think about switching your cell phone bill to a different provider, you might switch your cable provider to a different provide. Perhaps instead of buying car every year, you drive that car for two or three years, because the biggest value loss in a car is in the first year. Or instead of buying a brand new car, you buy a two-year-old car and then drive that for three years instead of one year, and all the sudden, with a couple of things like that, you can literary open up thousands of dollars every single year that you do that. Because the key is when you keep expenses low, and the key is not just bring them low, but keep them low, you’re carrying less baggage with you, which makes you move faster.

 

Just think about it. When you want to do an investment in Forever Cash, where’s that money coming from? From your extra income and from your lower expenses, because every dollar that you don’t have to spend on stupid expanses will actually allow you to keep that dollar and invest it in something that brings you more money. Think about it as the difference between a racecar and tow truck. Now, a tow truck that has to tow behind him a house. Have you ever seen a house being carried around on the interstate?

 

Well, that truck that carries that house is immensely powerful. It has a, I don’t know how many, a V16, or does that even exist? V12, whatever, double turbo, 800-horsepower engine in there, so it can even pull that house behind it. Have you ever seen a truck, a tow truck, having three cars behind it? That’s the thing. These cars are immensely powerful. Yet, they’re very very slow, because they have all these things that they carry behind them.

 

At the same time, a race car is made out of fiberglass. Everything that is not needed is thrown overboard. It doesn’t even have a back seat in many cases. If you look at these race cars, NASCAR race cars, they don’t have a back seat. It’s empty there, because why would you need a back seat if there’s only one guy driving and trying to drive that thing as fast as possible? It’s extra weight. They’re getting rid of every extra weight, and that’s what you need to do within reason in your life too.

 

Now, again, I’m not saying get rid of your television, get rid of your cable, get rid of your Starbucks every day, get rid of your cars, walk to work. No, I’m not saying that. But what I’m saying is evaluate your life and see if there’s stuff that really doesn’t add much value to what you do, doesn’t add much value to your life, and get rid of that. And then use that money to invest it, number one, in your own education, so that you know how to get ahead faster, and number two, in the actual investments that provide Forever Cash. Okay?

 

So the next Forever Cash concept is the following, the Wealth Wheel Process. Now, the Wealth Wheel Process, you already know about it. It’s taking those four or five pieces that I talked about and repeating them again and again and again. It starts up on the top where it says Manage Expenses. So you want to, again, what I just said. You want to manage the expenses, reduce your debt, take that extra money that’s freed up from you not having a $300 cell phone bill anymore, from you not having a $200 cable bill any more, and from you not having whatever else it is. Not buying a car every year and losing $10,000 of the current value.

 

Instead, taking your car and driving it a few years and taking the extra $10,000 that the car did not lose in value, and actually put it into, or the down payment that you didn’t have to make for the car, and use that and put it off to the sideline. Then, make extra money with…Well, we’re going to talk about it. We have an entire module in this program about how to make extra money. Then you make extra money and then you take all of that extra money, save the excess from managing expanses and from reducing personal debt, and move that into investing in Forever Cash assets.

 

And the key is then you keep that going, you keep that going again and again and again. As a matter of fact it almost becomes a spiral, because once the money is in the wealth wheel, it never comes out until you have enough money to pay for all your lifestyle needs that you want to use.

 

When Arnold Schwarzenegger made his first investment and it was successful, he didn’t sell the first building that he bought, he didn’t sell that thing after he’d gained $100,000 in value and then went on a cruise around the world and spent all the money. No, he took that, he kept that thing, or if he sold it, he took that money and invested in a million-dollar building so that it keeps going and it keeps turning that thing faster and faster, and faster.

 

So even as the cash generated by the Forever Cash asset, is that is not to be spent on anything other than reinvesting it into more Forever Cash assets until the moment in time when you have reached the amount of monthly cash flow that you set out for. And in that moment, the end goal is to have your Forever Cash assets pay for all your needs, for your basic needs and for your extravagant desires, for your Ferraris, for your big house, for your second and third and fourth house, for your cruise around the world, for all these things. But the money is not to be taken out of there until that is accomplished.

 

Now therefore, so now I talked about it a little bit earlier. Let’s talk about money a little bit more. Here’s the deal. Let’s talk about beliefs about money a little bit more. Let’s look at your beliefs about money and what you think about money, because that’s a deciding factor on your way to wealth and financial independence. So you will not move forward financially if you have some old, negative beliefs about money.

 

So let me ask you right up, if you look at that picture here, it’s a whatever. It’s some kind of a private jet, Learjet, or I don’t know my way around private jets, but a private jet, and a, I don’t know what kind of Rolls Royce that is, but it is a Rolls Royce. So here’s the thing. How do you feel about this picture? What comes to mind?

 

Ask yourself that when you saw this picture, if you were to own this thing or if you see somebody owning this thing, what do you think? “Wow, cool, I want that too.” Is that what you think? Or do you think, “Wow, but really, who really needs that stuff? That’s exaggerated.” Or do you get mad and you think, “Look at this jerk trying to show off his wealth. Look at us driving our Toyotas, and this guy, look at him just showing off to the world.” Whatever it is.

 

What are you thinking right now? Ask yourself, what are you thinking right now? What are you thinking right now will give you good insight into what you think about money in general, and whether or not you think really about it in a positive way?

 

Here’s the thing. How did you feel about that picture? Did you instantly think, “Oh no, I don’t want to go overboard. Perhaps there’s something in between,” or “Perhaps that’s cool, but oh no, no, no. That’s not how much money I am talking about. I just want to reach this. That’s like that’s too much money.” Did the thought of that that’s way too much money come into your mind, or would the thought of, “Oh boy, what would my friends say if I show up with a Rolls Royce? No, no, no, I can’t do that,” or did you say, “Oh, I’ll never get to that level, so I shouldn’t even dream,” or did you say, “Look at that. That’s like $400,000 for the Rolls Royce and like $5 million dollars for the jet. I mean I would need to have four and a half million dollars or five and a half million dollars to actually pay for that stuff,” or did you think, “Oh wow, that is exactly what I want?”

 

Now, I’m not saying you should think one or the other. Just ask yourself, what are you thinking when you’re listening to that? Now, here’s the thing. Let me tell you a secret. Whether or not this Rolls Royce or the jet is what you desire, here’s something that you either have or have not thought about. It’s much easier to get than you actually think. It’s way much easier to get than you think, because it doesn’t take four and a half million dollars in cash or a million dollars in cash to live a million-dollar lifestyle. It doesn’t.

 

So here’s the thing. Only if you think in terms of one-time cash, only if you think in terms of pile of money, you think this jet and the Rolls Royce are unattainable. But think about it. This is a limiting belief, and it actually it’s not even true, because for example, here’s how you can afford the Rolls Royce. Instead of buying a $400,000 Rolls Royce Phantom in cash…For that you would have to build up $400,000 in cash.

 

And think about what I said earlier. If you buy the Rolls Royce in cash, what happens five years later? The Rolls Royce is worth only 150 grand. You lost $250,000, and if you keep it 10 or 15 years it’s worth almost nothing, and you lost $400,000.

 

But here’s the thing. Instead of buying the $400,000 Rolls Royce Phantom in cash or finance it over a few years, you can buy a Forever Cash asset that produces just $3,000 in Forever Cash profits every single month, and with that you can perhaps pile this money up for a year. Then you have $36,000. And then you go and lease a Rolls Royce Phantom, which shouldn’t cost you much more than two, two and a half thousand dollars a month. You can lease those things for fairly inexpensive. Couple of thousand dollars a month, you can lease one.

 

And then, what happens now, you have the Rolls Royce Phantom, the car that you might or might not have wanted, without having to pile up $400,000 dollars for it, and without working hard for it every month. Al you need to do is a Forever Cash asset that brings $2,000 or $3,000, let’s say $3,000, so that you have enough money for the insurance and the gas on the Rolls Royce. And at the end, once the lease expires and you turn the Rolls Royce back in, you still have the asset. You still have whatever that asset is that throws $3,000 a month. You still have it. That’s the cool part about it.

 

So, let’s talk about that. That’s a side note. Just want to open your mind, because we easily fall back into the thought of “Oh my God, I need $400,000 if I want to buy this.” No you don’t. You need an asset that spits out $2,000 to $3,000. That’s all you need.

 

So let’s do a quick exercise. Take a sheet of paper and write down these nine questions, or stop the video there so you can write them down on the next slide about money along with your answers. So asking these questions might make you feel bad, might bring up some envy, anger, upsetness, or something like that, or it might make you feel great. Right? But this is not about making you feel good or bad. This is about finding out what you truly believe about money.

 

So whatever your answers are, look at them and ask yourself if these are the responses you want to have about money, you feel you should have about money. Okay, so here we go. Number one, think about what you have learned about money growing up from your family. Think about what your family has said about that. Also, what did you hear from friends and peers about money? Well, was money, in your family or friends and peers, was it ever a subject?

 

Was it a subject of where you’d talk about the rich as them being bad people, or “Look at these guys driving this bug car? Who do you think they are?” Or was it a subject of like yeah, let’s talk about money, cool things and cool ways to make more money and things like that. Well, what do you hear at the workplace or at church about money? Do you hear that money is the root of all evil, or do you think about money as something you can use to do good?

 

What are you taught in school about money? Was it even a subject? Was it ever even mentioned? What emotions have come up when you think of somebody who is rich and has lots of money, who lives an extravagant lifestyle? Is it envy or is it, “Oh man, I really want to join him,” or is it a burning desire to join them in admiration, or is it anger and thinking they are crooks and they made their money with bad ways? What does having money mean for you? What does having not enough money mean for you?

 

So first, what does it mean if you have money, lots of money, what would that mean to you? What would it make you feel? What could you do with it? And then the opposite, what would not having enough money mean for you? Would it mean that you have to suffer any hardships? Would it mean that family members would perhaps not get the medical care that they should get? Would it mean that you can’t fulfill your dreams that you have in life?

 

So also, what does it mean to have a lot, a lot of money, like lots of money that you can do whatever you want, and how would it make you feel to have more money than you ever needed? Think about those. Well, how would it make you feel to really have what you might consider right now too much money? I like that country song. It’s like: “Too much money, no such thing.”

 

It’s like a girl too pretty or something like that. There’s no such thing. Right? But if you have that feeling, you want to address it, you want to look at it, and you want to make sure that you catch yourself when you have those thoughts if they are negative thoughts, and replace them with a thought that you prefer to have. And if you catch yourself often enough, you can actually change the way you think about money.

 

So how did that make you feel? Did you come up with any weird sensation? Did any uneasiness come up? Did you feel strongly about any of those in a positive or a negative way? Analyze it a little bit.

 

So now let’s look at another picture, though. Let’s talk about money a little bit more. Now, what is money actually? Let’s talk about that for a second. Here are some of the most beautiful definitions of money that I’ve ever heard, and that is from John Butcher, the founder of a great personal development program that Michelle and I, my wife and I, went through not too long ago, and it really changed a lot in our life. We really loved it. It’s called “Lifebook.”

 

But now here’s what John says. To him, money is a few things. First of all, on the surface, money is just a meaning of exchange. Right? Back in the days, they created money so that you don’t have to go trade a goat for a sack of corn and then you have to trade the sack of corn for wood and then you have to trade the wagon of wood for what you really might want, which might be a cow. Right?

 

So bottom line is that’s what bartering basically used to be. And even though bartering is still popular today, there’s barter clubs and so on, but that’s not how we really think about it in terms of money.

 

Money is there for a medium of exchange. You can just go. If you want a cow, you can just take money, go buy the cow with it. If you want a car, you just take money and buy the car with it. So it’s a medium of exchange.

 

At the same time, on a much deeper level, money is, and that’s really a very beautiful definition, it’s stored energy. If you think about, it’s stored energy, and even stored time, because think about it. You gave your time to generate money. If somebody goes and works at minimum wage at McDonald’s, they give 8 hours to receive $64. If an attorney charges $400 an hour, they give an hour to make $400. Right?

 

Whatever you do that you make money in, you gave time, and time and energy. You gave your thinking time, your thoughts, your energy, your effort to it to make money. So therefore, in that money, when you go buy something for that money, you’re giving with it your energy that you exerted in generating that money, and even stored time. Now, there’s ways that you have to generate a lot of effort to make very little money and there’s ways that you have to generate very little effort and make a lot of money. And ultimately, we want to get you understand the ways you can exert little effort and make a lot of money. But often the prerequisite of that is that first you have to invest in yourself, you have to spend the time and energy in yourself so that you can become smarter about money and therefore generate more money with less effort.

 

But whichever way, there’s always a little effort and a little time involved in generating the money. And also, a third way of looking at money is that money is literally the best the other party can give you, can offer you, because in order to generate their money they gave their best for it, their time and their energy. Does that makes sense?

 

So here’s the thing. If I go to the grocery store and I buy groceries, I give them the best that I have to offer, which is money, because inherently in that money is the time and effort that I spent making money, and the grocery store therefore gives me something of equivalent value, which is groceries. Right?

 

And the same thing happens, it’s very easily understood if you look at art. If somebody really carved this beautiful statue of an eagle, wood carved, and every detail is there, and it’s absolutely gorgeous, and he gives you that, and you give him money for that, hasn’t he just given you the best that he has created for that, and therefore you give him money for it? So he just basically converted the best of his artistic abilities into money. And now he takes that money and exchanges that against something else. So really in that money is the best that he could actually produce, which was that eagle. That was his way of creating something.

 

And it applies for everything else. Anything you create, anything that you do that you get money for is actually in there. So it’s a beautiful way. Money is something absolutely gorgeous, if you think about it that way, if you think about that a little bit.

 

Also, when you have money, you can pay for stuff you otherwise you have to make or do yourself and exert time and energy for. So you can have your garden taken care of. If you don’t enjoy gardening, or you live like me in Phoenix, Arizona where it’s 120 degrees sometimes out there, you don’t want to be out there in a garden doing stuff. You can have somebody else do the garden work for you.

 

You can have your house repaired by somebody else just for money. You can have your house cleaned by somebody else, and you can travel by airplane faster. It costs you perhaps a little more than somebody traveling by bus or car or bicycle, but therefore, because you are able to pay for it, it saves you time. Right? You release the time out of the money by paying it and therefore shrinking the time that allows you to actually get somewhere, or at the same time by investing yourself.

 

Plenty of times I’ve paid money to actually get education that will shrink time so I basically don’t have to spend two years figuring something out, how to make money in a certain area, but instead, I can learn it in a matter of a weekend. I can learn it in a matter of a month. I can figure it out in a matter of three or six months or so instead of it taking two or three years. By paying money, you can release that time and also that energy out of it. Right? So money buys you time and saves you energy because it’s contained in it. I really love that definition, if you think about it.

 

So now, let’s talk about just an additional thing here, and that is, what do you feel about having a bunch of money in your bank account? Because we talk about money and how you feel about it and so on. But here’s the thing. What would you feel about if you have large sum of money, of assets, of cash in your bank account, or if you own a whole bunch of real estate or own a whole bunch of stock, a dividend stock, or if you own a whole bunch of stuff like that?

 

What have you done in the past every time that you had a whole bunch of money? Were you tempted to spend that money every time you earned it? Did it literally burn a hole in your pocket, or if the income increased, did you spend the excess or hoard it? Have you ever had large sum of cash just sitting in a bank account, even thousands or even five or six digits, tens of thousands, hundreds of thousands of dollars? Do you always feel the need to spend money when you make it?

 

When you get a bonus at work, do you feel a need you need to spend it right away, or do you get excited by the thought of what the seed money can represent to you in the future? And that’s actually the key I want to talk to you about, seed money, because here’s the thing, in order to buy Forever Cash assets and follow the Wealth Wheel Process, you do have to accumulate some cash up front as a short-term savings which you then use to invest it in Forever Cash. Now, depending on whatever Forever Cash assets in your goals in terms of how much Forever Cash assets you want to produce and how much per month you want to produce, you will build up either a few thousand dollars, or even tens or even $100,000 or more in short-term savings that you then take and invest in Forever Cash assets. Right? You put it aside for your Forever Cash asset investments, and so on.

 

Now, building this asset, building this money will be easy. As you’re through this program, when you really internalize this concept, you will start seeing opportunities to make money on every corner. If you invest in yourself and start making yourself more knowledgeable about Forever Cash assets and ways to make more money, you’ll be able to make money left and right.

 

The key is, what is your pattern when you have that money in your hand, when you have $50,000 in your bank account? What’s your pattern then when you do that? Is it to spend it all or is to keep it? That’s something you got to work on, because if it is to spend it, then in the later module, module three or four, we’re going to talk about actually how you can shield that money from yourself so that you don’t burn it. Okay? So that’s an interesting concept. Just think about these things upfront right now.

 

So also, is money good or evil? Well, I don’t know. It depends on who uses it. To me, money just expands who you already are.

 

If you think about it, the bad person can do more bad things with more money. A good person can do more good. A charitable person can do more good with more money and can help more people with more money, and a show-off person, a person who likes to show off, can show off to a lot more with more money.

 

So it’s not about the money. It’s not the money that defines people. It’s not like money spoils the character. No. It’s money that shows the character. So it’s the means to do more of what you already are inclined to do.

 

For example, Bill Gates uses his vast amount of wealth to a eradicate viruses from this world that are killing millions of people. He’s after malaria, after a couple of other things, and he says we’re just a step away from eradicating malaria around the world. It would be awesome. He also is spending hundreds of millions of dollars trying to improve education around the world, including the U.S., so that people have a better future.

 

At the same time, Osama Bin Laden used his family money, because he’s a part of a big family, oil family that give him like a stipend or something like that every month. He used to make good money out there, as far as I know at least. He took that money and influence that he was able to gather to spread evil around the world and kill and destroy people.

 

Two people, both have money, both used it for entirely different purposes. So it’s not money that makes people do that. It’s what people are already inclined to do that money just magnifies. And ultimately, peace of mind.

 

Now, here’s the thing. What ultimately in my opinion gives you peace of mind is not even the big house and the cars and those kind of things. They’re absolutely cool, and I love my big house and I love my cars and I love my vacations and I love being able to be in five-star hotels and not even look at the bill when I go to a restaurant or the grocery store or even when I buy my wife something beautiful, not even look at what it costs. But at the end of the day, what really gives me peace of mind, and anyone that I know that’s in a similar situation, is the knowledge that all your bills are being paid every single month forever without you having to hustle to have them paid, that you can take vacations whenever you want, that you can buy that fancy car and house if you want to and that you can afford the best health care anytime, anywhere.

 

But the key is, what really gives you peace of mind is that if these things are taken care of by Forever Cash. All these things should not be paid by your active income. But if everything is paid by your Forever Cash, that brings peace of mind.

 

If you have Forever Cash, your problems are not going to go away. Having lots of Forever Cash does not mean you don’t have problems in life. You just have a different set of problems. You’d have a different quality of problems, which I really think is a better quality of problem.

 

So for example, a quality of problems like man, I have to repair the BMW again, or, where I should go on vacation this year or next month, or this month, for that matter. Hawaii, Bahamas, Europe, Africa, South America? Wherever it is. Who is going to pick up my rent checks when I am on vacation? And again, as I said earlier, I’d much rather to figure out how to collect rent while I’m on the beach than to have to work 40 hours a week for the man. Simply has no comparison.

 

Therefore, final thoughts, a couple of final thoughts. True peace of mind comes from knowing that you have a flock of healthy geese, golden geese that lay golden eggs for you every single month. Also, you never sell a golden goose unless it is to buy several new golden geese that lay even more golden eggs or a bigger golden goose that lays bigger golden eggs. And once you have enough geese laying enough golden eggs, you can use the eggs and what they represent, the money, to pay for any luxury your heart desires. In the meantime, though, use the eggs to buy more golden geese. Keep your expenses down.

 

All right. That is the easiest, and it’s a 100% reliable way to get to financial independence. Every person that I ever met that followed these steps diligently has reached the goal. Forever Cash is the solution. All right. Thank you very much, and I’ll see you in the next module.