Get bankrupt! You heard me, stay bankrupt but not poor. What is the difference? Bankruptcy is a temporary situation. Bankrupt people have money, they just misuse it. Poor is indigence or lack of sufficient resources. I got this from Grant Cardone, The millionaire brochure. It also aligns with Dave Ramsey’s concept of naming every dollar.
It’s about increasing cash flow and building wealth. Staying bankrupt is a financial strategy that helps you achieve financial freedom. What does it really mean to stay broke, not poor? First, it means having a monthly cash flow plan (budget). Second, you are practicing delayed gratification. Third, reinvest your money in yourself and in your business.
This is for wealth builders. Those entrepreneurs who are not playing average. The average business owner in the United States makes less than $ 25,000 per year. 91% of all small businesses earn less than $ 250,000 per year and 80% of entrepreneurs fail within 18 months of starting. Playing average sucks. So don’t play average.
Perfect examples
You’ll see examples of artists and athletes who get paid a lot and a few years later go bankrupt. There is no shortage of stories of athletes or artists who went bankrupt or went broke after a big payday. The best players start buying toys, living in abundance, or making poor business decisions. The entertainers organize big parties, “buy” the bar and go into debt buying things they can’t afford.
Check Wikipedia for the statistics of famous people who went broke or went bankrupt. These are good examples of people who received big salaries but did not go bankrupt. Athletes have a short career. There is a small window for them to produce a large amount of income. Animators must remain relevant in their industry before the well runs dry. You, as an entrepreneur, have the ability to continue producing.
Stay bankrupt
Please understand that I am not telling you to limit your current lifestyle. Staying bankrupt requires discipline. It’s about making sure you focus 95% of your time on building your biggest assets. What are you and your business. Grow faster by staying on budget and reinvesting in your business.
People underestimate the time it takes to be successful in generating positive cash flow. They do not prepare for the peaks and valleys that are going to occur. Also, they are not prepared for times of scarcity or when part of their business fails. But staying bankrupt can help you weather the coming storm.
5.5 Aspects of staying bankrupt
1.Cash flow plan – To stay bankrupt, you must know where your money is going. Everyone needs a cash flow plan. Know where every dollar goes. Give every hundred a task. Money that does not have an allowance tends to get lost. Keeping track of your money keeps you out of financial trouble. Money that hangs around for no purpose is wasted, wasted, or wasted.
2. Delayed tip – I made this mistake often. I would spend my bonuses and every big raise. I was naive in thinking that it will always come. I did not save or reinvest in my business. Therefore, I was left homeless and homeless. “Ballin” is stupid. Especially when you don’t have the assets to back it up. Leave the ostentation behind. Forget about impressing people and being “turned on.”
That great client you just landed doesn’t indicate it’s time to spend and get stupid with the new raise. Delay that momentum. Put that money back into your business to generate more income. Get more important customers. Delay indulgence now so you can enjoy later when you are free of finances.
3. Increase revenue – Income is king and this is the only thing that matters. Remember, we are not playing average. Businesses succeed when revenues increase. Incremental increase is key. Going from $ 4k per month to $ 4 million overnight is next to impossible. Look to double your income in the next few months. Always look to increase income. More sales = success.
4. Sacred beads – Put all that extra income into Sacred Accounts. When something is sacred, you don’t touch it. He did not violate it. This money is for future use to help create more assets. I have a real estate account that I haven’t touched in years. I put a part of my income into it every month. All my extra money goes to that account and I don’t touch it.
You are saving to invest. Don’t save to save. This money is intended for a future purpose to generate more income. It could be a second business, real estate, or anything else that increases your income streams. The key is … you’re not just saving. You are studying while saving and learning about your next investment.
Understand that it could take years before you pull the trigger. I have saved in my real estate account for 2 years. I am studying and active in the areas in which I want to invest. Study while you save.
5. Reinvest your earnings – A part goes to your sacred accounts. Reinvest the rest after all your needs are covered. Put that money back into your business and yourself. Do you need to invest in coaching to improve? Then do it.
5.5 These things take time – Idea + Hard Work x Time + Discipline = Success. Are you committed to getting rich? How serious are you about building wealth? I don’t know how long it will take you to produce a six-figure income. I know it takes work, time, discipline, and access to capital. My mentor went from welfare to $ 10 million in less than 3 years.
Game time
Success takes time. Stay broken and continue grinding. The decision to remain bankrupt is yours. You are voluntarily choosing to build your business so that you can become financially free later on. “Pay the price now so you can pay any price later.” – Grant Cardone