The first thing I want to talk about is making more money. What a novel concept. You just have to learn to make the money to have it. A lot of you are used to fixed income jobs, where you’re just used to getting your weekly paycheck. The only reason you have credit card debt is because you outlive your ability to make more money. It is not because you’re a bad spender or that you overspend.
Now, for some of you, that’s true. But if you live on a fixed income, and it’s not enough, is it really your answer to keep living on credit cards, or is it to make more money? Make more money is always the answer to debt. So, we’re going to teach you how to make more money. I’m going to give you two tickets to my Millionaire Intensive https://askloral.com/event.
See, in my world, you don’t have an excuse to make more money or learn to. Because every three weeks I do a marketplace. So, when you grab the two tickets, go ahead, and take that upgrade for the VIP at $47. It’s the replay and a whole bunch of other amazing education that people pay thousands and thousands of dollars for. So, as you make more money, make that your newest priority.
I want you to think about a wealth cycle. It’s in my Millionaire Maker’s book https://www.lorallangemeier.com, in the early chapters. It’s a word that I made up because most of you are caught in the lifestyle cycle of make, spend, make, spend, make, spend. Then you wonder why you’re in debt. You don’t make enough money, so you’re always in credit card debt, so you don’t pay them off every 30 days. Is the answer debt? Is the answer you? No. It’s make more money. So, you need marketing, you need sales.
All of you are brilliant at something. There’s something you can do to create more cash, and it doesn’t have to be some big, amazing business. It can be a simple business. Do some extra house cleaning, some tutoring, do some videography, rake yards. There are so many things you can do to make extra money.
I want you to go and search my YouTube channel https://youtube.com/loral/live/videos for every topic where I’ve talked about credit cards, credit card debt, etc. I’ve already broken this down so many times, and still a lot of you do it wrong. And, as you make money, there are goals to get you to use credit cards exclusively for all of your payments. Pay them off every month, so you stay at 0%. The number one benefit that no one talks enough about when you use credit cards properly, a lot of them, you are running a lot of money.
An average good utilization is route five to seven credit cards. So, when you have five to seven, you are constantly using and constantly paying off. What does the financial services world look at? They look at you like, “Oh my gosh, they make a lot of money. They can spend this much money on all these credit cards and pay them off completely every month.”
You’re not paying any interest on the money for 30 days. You use banks or other people’s money, which is a fabulous strategy, because it’s not your cash on a debit card, coming out of your bank account. And so, what do you get for that high utilization? An amazing credit score. So, on page 194 of my Millionaire Maker book, I want you to consume my pay down schedule, of how you pay down debt. It’s a power down strategy, and you don’t pay multiple cards.
How do you utilize your credit cards? When I say a lot of bills, I’m talking about using your company to get credit cards. I use at least four to six cards, sometimes seven, depends on the month, and we pay them off every month. So, I have an enormously high credit score.
If you’re living as a sole proprietor, none of this works. So, it’s fascinating how many of you want to stay cheap and sole proprietors and do it your way. It’s not working, and it’s probably a horrible way for you to continue, not only your tax strategy, but any sort of financial strategy.
When you use points, American Express Platinum has amazing points. If you accumulate points, and for those of you who travel, or you want to go on some big trips, you’d be shocked by how many plane rides, how many hotels, how many other things that you can buy, and completely pay for by accumulating proper points on proper cards, using actual bank cards.
Let’s just say you bank at a typical bank, like Wells Fargo, BofA, that kind. If you have a debit card and a credit card on that bank account, it’s not enough. You need to go to the American Expresses, Chases, the Citi Banks. Although they have banks attached, they’re known more as a credit card than a bank. So, get those cards. And again, I have to explain the depth of the 30-day use of money.
So, if I’m at the first of the month, and don’t have to pay that bill for 30 days, I’m using somebody else’s money. I can accumulate, accumulate, accumulate, pay it all off. And, if you pay it off on day 28, day 29, day 30 on a variation, it works well.
Should you have multiple credit cards, and when do you pay them off? Most of you, you might pay bills once or twice a month. I would encourage you to start paying bills weekly. Let’s just say you have four cards. You’re going to pay off one card, week one, and start using it again from there in a 30-day cycle. You’re going to pay off the second card, week two. You’re going to pay off the third card, week three, and the fourth card, week four. So, you always have enough money in the system. For those of you who pay it off once a month, all at the same time, all four cards, you actually have a gap before you start utilization again.
So, there’s a whole utilization formula. There is a debt-to-income formula that the financial institutes look at. When many of you say you need capital to start your company, I’m going to ask you if you’ve been using credit cards and credit, using, and activating your debt? If you did that wrong, you’re not going to have as much money, and you’re not going to have access to a lot of money.
I have clients that have gone into a traditional bank and were given $7, $8 million in a commercial real estate loan for 6-7%. Most commercial loans are 8-9%, and it’s because they’re using their debt properly. They use their credit cards properly, and they were in the system properly.
So, let’s get your system right. Let’s get you in a wealth cycle, and out of a lifestyle cycle.
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