Going Long Podcast_Episode 426_Billy Keels

Tue, Jun 04, 2024 1:48PM • 10:26

SUMMARY KEYWORDS

realised, investing, life, billy, continue, live, podcast, expenses, talk, barcelona, work, millions, lesson, rich dad poor, keels, covered, passive income, mindset, real estate, episode

SPEAKERS

Billy Keels

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Billy Keels  00:00

Today's conversation is sponsored by the Billy keels advisory programme. If you want to learn more about how to make your nine to five optional, just go to Billy keels.com forward slash advising. Once again, that's Billy keels.com forward slash advising.

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00:10

You're listening to the going long podcast, the number one podcast for the strategies, tactics and actions high wage earners need for living an intentionally designed life of wealth and resilience.

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Billy Keels  00:24

Welcome to the gold long podcast, we're back once again to continue to help to educate you so you feel much more comfortable as well as confident in building the wealthy and resilient lifestyle that you're looking to lead. And being able to do that much faster. I'm your host, Billy keels, and I am super excited to welcome you back to another one of our brief solo episodes. And you know what, I just want to start off by saying, Thank you so much to each and every one of you that continue to download the podcast, share it with your family, share it with your friends, talk about it, put it into action, because you helped to keep the podcasts in the top 1.5% of podcasts globally. I also want to send out a special thank you to those of you that continue to tag us on social media, especially LinkedIn and Instagram, means the world to us continues to help the community and going along family grow. And if you want to check out more than the 420 episodes, any one specifically, you can just go search for it, all you need to do is go to Billy keels.com, forward slash podcast. Once again, that's Billy keels.com forward slash podcast. So today, you know one of the things that especially if you are someone who is a high paid corporate, especially if you're working in IT industry, or you are a small business owner, if you're someone who has continued to chase the all elusive having $5 million or 5 million euros in your bank account, and be able to live off that at three 4% or whatever the case may be. Well, you know what, I want to share a little story because there is a really, there's an important lesson that I learned from Rich Dad Poor Dad, if you don't know about the book, check it out, you can Google it, find out about the the author of the book. But most importantly, this book is filled with lessons around investing. A lot of people associate it with real estate and things like that. But really, it's a it's a study in a mindset and also a lot about debt and how to effectively use debt. But here's the thing, like I was, you know, I grew up in a lower middle class kid. And I've talked about this before. And one of the things like one of the goals, the dreams that I had was, you know, being able to invest in have mutual funds in my portfolio and eventually get to a 401 K and continue to save and continue to save and get to retirement and feel fulfilled. And you know, starting early on in my 20s. And being able to do that all the way until I was 65. And now I guess it's 69 or so it's going to be 70 soon. But the whole thing was I was programmed to think that I was looking to build a stack of cash, and to get to millions of dollars. And I wanted to be prepared for my retirement like that was the whole thing. Like I wanted to be absolutely prepared for retirement. And more importantly, as I started getting older, I was like, I don't want to go back to that lifestyle that I watched my parents live, which was working two jobs to make ends meet. That was like a big fear for me. So to be able to get to a point in my life where I was like, I I'm never going back to that type of a mindset, really because I realised now it was a mindset. I didn't realise that at the time. But what I started realising was between the paychecks that I was getting early in my career and getting to like 4 million or $5 million in my bank account, it was going to be like, how was I going to get to that, but I didn't know any other way. So what did I do, I just kept doing it and doing it and doing it. And as I had these proofs of concept, or POCs, that I talked about a lot, because because I was in the enterprise software space, I started seeing that there were people that were, you know, have their grey hair and have their I've got my great or not, by the way, but they have their grey hair. And they had been working in these corporate jobs, or they own their own businesses. And I started realising like, wow, these people look pretty much financially secure, financially set. And I realised that I could keep continue to go down that path and work a lot harder. And then probably around 2008 2009, I had this boss in Barcelona, who was telling me about real estate that he was purchasing. He lived in Barcelona, but the real estate was over in Scotland and I was like, well how in the world is that even possible? And so then that turned my mind on to something that was outside of 401 K's your your pension or your your mutual funds. It was like real stuff like houses. I didn't even think you could own a house in terms of being able to rent it. I just was my mindset at the time. So after understanding that this was possible because there he was doing it. I still started looking up more information. I went online and I was looking up I started listening to podcasts. I started watching YouTube videos and I came across this book that I picked up before and then put down called Rich Dad Poor Dad and it talks about a lot of different things it talks about you know the rich don't work for money and all this stuff. And so when I tried to take those lessons from the book and employ it in my life here in Barcelona, like it didn't work, because I was trying to figure out how to buy real estate. And the numbers just didn't pan out. Because I, for me, the market where I live in Spain was not the market to produce cashflow, which was what I was looking for. But that's a whole nother probably podcast, we can go into that at a different time. But the reality is, one of the lessons that I took away from this from the book was, you basically once you have your living expenses covered, or once you have your expenses covered, like technically you're free. And I thought, wow, that's actually kind of cool. But then he went on to add another thing that said, Do it passively, meaning passive income. Now passive income there is so many people talking about passive income, and they don't even know what they're talking about. Like that is truly an IRS definition of the way that income is generated. But basically, if we say passive income in this instance, means money that is not directly related to your time. So let's you know, just use an example. Like, let's say that your household you're, you know, you're married, you've got a couple kids and your whole your household, depending on where you are, where you live, like, I'm going to use a Midwest kind of thing. But let's say you have family expenses, and they're $6,000 a month. Well, as soon as you have $6,000 A month covered in terms of being able to not, you're not actually just going to work, but you're investing in other things, you may be investing in real estate you may be investing in. I don't know online businesses, you may have a business that you have placed capital in and you are not actively working in that business. And it's kicking off cash. The thing is, you don't need to get to millions. That's the whole fallacy is like, I thought early on in my career that I needed to get to millions of dollars in my bank account. And I started realising like, that was gonna take me forever, it was so much easier to think about, okay, well, what are my expenses, my expenses for me, my family, let's say at $6,000 a month, okay, well, let me invest in an online business. Or maybe I'll build an online business. Once that's up and running, it generates two $3,000 a month, and then I'm investing in a couple of different real estate deals, those are kicking off 3000. Well, guess what, technically, all of your expenses are covered, because you reach that $6,000, just through three or four investments. Now, I'm overly simplifying it. But the idea is, it became much more attainable to me. And I realised, oh, my gosh, I don't have to work forever to get to these 4 million because it was going to take forever to get to like four or $5 million in my bank account. And what I also realised is by taking it in small bite sized chunks, like just to focus on what are my expenses? And how can I invest in things that will cover those expenses, it just completely changed my mindset. And I started to realise, like, oh, my gosh, my basic needs are covered. So now anything and everything I do after this, I can employ my time, I can invest my time the way that I want to, because my basic needs are covered. And it was a game changer. And so that one lesson that I learned from Rich Dad, Poor Dad was like the thing that I really want to share with you today. It's like, it's a super simple, super fast episode. But the whole thing is, don't always you don't always need to try to get to the largest thing, just break it down into bite sized chunks. And one of the ways to be able to set yourself free to get to have more control over your time, is being able to get to a goal that's attainable. And rather than trying to get to millions of dollars over 20 3040 years, focus on the things today that can free you of having to make decisions that are more difficult for your life. Like if you have your basic needs covered. Imagine you're doing that through investing, then do you really need to go to your job, or are you going to your job because you want to. And if you do, then that's great, I did it. I went for 10 years, I was building a business on the side. And the last four years, I didn't actually need to go to my job, I chose to go to my job because I liked it. It was cool. And then there were life circumstances that, you know, my dad got sick, and I decided I didn't want to be in the in the corporate life anymore. And that's okay, I liked it was a great experience. And I still talk about it. So hopefully this is helpful that you don't have to get to millions and millions of dollars, just get to figure out what it is that your your living expenses are, what your basic expenses are. And give yourself a little cushion and work on getting in investing in things and investing your time and things that are going to generate the revenue that is going to help you not have to continue to work or to focus your time and your energy on things that are going to give you the most return for yourself and for your life. So if you've not thought about this concept before you know that somebody is struggling, and they're on that path to try to save millions and millions and millions of dollars, well if you help give them this new perspective, and this is the like the really important lesson that I learned from Rich Dad Poor Dad, then I'm sure that you're going to help that person as well. Download the episode, share the episode with somebody else talk about it. And while you are doing that, I'll be here preparing for the next episode. So until then go out and make it a great day. And thank you very much for today's conversation We're sponsored by the Billy keels advisory programme. If you're looking to make your nine to five optional and need some help, just go to Billy keels.com forward slash advising once again, that's Billy keels.com forward slash advising.

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