Episode 876 - 99% ignore this when manifesting $1,000,000... 1% don't!
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It's true that some things change as we get older. But if you're a woman over 40 and you're dealing with insomnia, brain fog, moodiness, and weight gain, you don't have to accept it as just another part of aging. And with Midi Health, you can get help and stop pushing through it alone. The experts at Midi understand that all these symptoms can be connected to the hormonal changes that happen around menopause. And Midi can help you feel more like yourself again.

Many healthcare providers aren't trained to treat or even recognize menopause symptoms. Middie clinicians are menopause experts. They're dedicated to providing safe, effective, FDA-approved solutions for dozens of hormonal symptoms, not just hot flashes. Most importantly, they're covered by insurance. 91% of Middie patients get relief from symptoms within just two months.

You deserve to feel great. Book your virtual visit today at joinmidi.com. That's joinmidi.com. So when I teach entrepreneurship, I like to focus on three areas. Number one is making really good money as an entrepreneur. Number two, enjoying a wonderful lifestyle. And number three, investing for the long term. And why I like to teach it this way

is because having been now an entrepreneur full-time since 2009 and having built three successful businesses and also having worked with thousands of businesses along the way in consulting while I was building my IT business and also my YouTube channel, having met so many entrepreneurs over the years and having worked with so many entrepreneurs,

I find that entrepreneurs can benefit greatly from a more reconciled view of life. And by that I mean, they may think that it's either this versus that. Like you can only make really good money when you completely sacrifice your health, your family, your friends, and well-being. So you can only be a successful entrepreneur

when you neglect these areas. And what I found is that that is not necessarily true. While it is true, we can say that if you invest more time, generally you'll get more returns. Although that time is best optimized to get returns than simply adding more time. In other words, doing more work, filling up your schedule,

With things that aren't necessarily high leverage, which by the way, we talk about how to do this in my new book. You may or may not have gotten a copy yet. I recommend doing so. There's a chapter dedicated to this in the end. My book is called The Direct Path to $1 Million. Turn what you already have into a fortune. We talk about this in the book. I'll put a link in the description to Amazon. You can get a copy of this book.

So we're going to be discussing this book upcoming in the videos, and we're going to be exploring and going very deep into the areas, again, built on the foundation of being an entrepreneur for 16 years. So as mentioned, an entrepreneur might think, I need to work harder. I need to do more. I need to put more time into growing the business. And while that can be true, we can also leverage our time better.

We could also choose what we do a lot more wisely. And we can automate, optimize, delegate, or eliminate. And that does not necessarily do as much, but then focus on the high leverage initiatives in entrepreneurship. Generally, what I find are innovation, sales, marketing, client acquisition, prospecting, lead generation, marketing,

ongoing business with existing clients, and high-level strategy. So it's not necessarily true that you have to work hard and force yourself to do the things that you hate to do and sacrifice your friends, your family, your hobbies. You can enjoy a wonderful lifestyle along the way as well as I have. This is why I refer to this as flow-based entrepreneurship or flow-based wealth building.

So number two, enjoy a wonderful lifestyle. When I consult, when I coach entrepreneurs, we focus on all three. Make a wonderful income, whatever that may be, $10,000 a month, $20,000 a month, $30,000 a month, whatever they'd like. Number two, enjoy a wonderful lifestyle while they build their business.

And number three, invest for the long term, which is what I would like to focus on more so in today's video, complete with a spreadsheet calculator that I created for you. This is one that I have used over the years for my investments, and we can say it has been very fruitful because it has, through a very simple calculator, laid the foundation for

exactly how much returns I would like to get and where to invest. And then mathematically, without confusion, mathematically, I was able to lay down exactly how much was required to invest, which was very clear. And then over the course, I secured financial freedom.

So we can say then, although this book is focused more on the direct path to $1 million, as in making the $1 million by turning what you already have into a fortune. In other words, you already have the wisdom, knowledge, expertise, reference experience, stories. You have everything. And that's what I did. And you can do the same as well. So while you can make $1 million, I advise entrepreneurs right from the beginning to

To put a portion of that aside, because what we have found is that eventually that replaces the income that they make in their business. So I have worked with entrepreneurs who have, let's say, very impressive numbers. They make $100,000 a month or more, but they don't have a lot of money saved and invested.

They don't, for whatever the reason may be, and we can explore, but some of the reasons may include that their overheads are really high. So although they may be making $100,000 a month, their overheads may be something like $70,000 or $80,000 a month. And so they're really netting then $20,000 a month, which is still really good. But then what if we take another entrepreneur who is making $30,000 a month on revenue?

On the surface, it doesn't sound as impressive as the entrepreneur who's making $100,000 a month until we go a little deeper and we discover that the entrepreneur that is making $30,000 a month is netting $25,000 a month. And if we go a little deeper, we see that that entrepreneur who's netting $25,000 a month lives on maybe $10,000 a month.

And so they take that other 15,000, they live off that 10,000 a month or less. I've seen entrepreneurs live on less and still have a wonderful lifestyle depending on where they're living and doing things like barter, et cetera, which we're happy to explore if you would like to explore, if you want me to discuss these areas upcoming, because I've done these things. You can leave a comment and we can explore. So they take this $15,000 a month and they invest it

into something that, let's say, brings in 7%, 8%, 9%, 10%. And then over the course, I'm going to go through a calculator to demonstrate this. They actually make more from the dividends or the income from their investments and or the investment portfolio increases.

to the tune of making more. In other words, let's say they were making $120,000 a year from their business. They're making $140,000 or $150,000 in gains on their investment per year. And as mentioned, if this entrepreneur is investing $15,000,

and they're living off the 10,000 and the other entrepreneur, let's say making 100,000 a month is spending all the money. What we see happen quite quickly actually, it doesn't even take that long, is the entrepreneur who makes less revenue but nets more and also invests more gets to a point where their returns on investment, the dividends, et cetera, the passive income earned from those investments

are greater than what they're making in their entrepreneurial venture, whatever it may be, the coaching, the consulting, the products or services that they create. And it's a wonderful place to be. And that is why I teach all three. Number one, make really good money as an entrepreneur. Number two, enjoy a wonderful lifestyle. And number three, invest for the long term. So here are some points in relation to all three.

In relation to making really good money as an entrepreneur, focus on net income rather than large numbers per month. Although there's some benefits to having large numbers per month, like for example, you can optimize. What I have found is if we focus more on the net per month,

then we also get better at allocating the resources and we also find creative ways to grow our business without necessarily incurring more and more expenses.

Now, these expenses, let's say, could be in advertising. So that is actually fine because it's bringing in revenue. Yet those ads can be optimized. We may also find additional lead sources. We may also benefit from engaging in ongoing business with existing clients and thus not need to invest as much on ads.

We may benefit from more organic content creation, etc. that can bring in more leads like I did with my YouTube channel. I didn't spend any money on ads on my YouTube channel, although there's nothing wrong with that because I have entrepreneurs that I've worked with that have done ads with YouTube or Facebook or Instagram and they have succeeded.

What I like to also emphasize when I work with them is tap into additional lead sources, client sources, revenue sources that don't necessarily involve investing more money. Number two, reduce unnecessary expenses in business without compromising lifestyle and business investments. So this is not about being cheap. It's about allocating resources in a way where it's more intentional.

Also, in relation to generating wonderful income, I recommend staying away from shiny object syndrome. And generally what I find when I optimize businesses, what is helpful for them is doubling down on what is already working. If their ads are working, then we double down on that. If their referrals are working, we double down on that. And by doubling down, it doesn't necessarily mean spend more money on ads. It could be optimizing the ads with a higher level of precision.

Think in decades, not just quarters, especially when it comes to scaling. And remember, your business funds your life and future investments, as we discussed just now. So you can also enjoy a wonderful lifestyle while you're building a business. I recommend it for your health, for your well-being, for your quality of life. I recommend if you're going to dedicate, like I dedicated 16 years in entrepreneurship, you may dedicate 20, 30, 40, 50, 60 years

plus years in entrepreneurship, you might as well enjoy your life because that's 30, 40, 50, 60 years. And so although it can be that the individual can focus only on making money and then make a lot of money, and then even then they might be making a lot of money, but they're not netting a lot.

They can also make wonderful income. They can also net more and they can also have a wonderful lifestyle by doing both at the same time, by just intending that you could do both at the same time. As mentioned, I work with a number of entrepreneurs that were maybe more biasing on the making money side, or I've actually worked with entrepreneurs as well,

who enjoy the wonderful lifestyle, but they're not focusing as much on the prospecting or the lead generation or the client acquisition, the innovation, the ongoing business from existing clients. And what we find is a harmonious relationship between the two.

So I put spend slash invest because we can look at it as everything is an investment. But you can say spend slash invest consciously on what amplifies your energy, health, creativity, relationships. Here's a good one that I actually structured my business so I'm able to do this. And I've traveled a lot over the years while building my businesses. Travel what you want and you can allow your business to fund it.

I remember staying in California in 2017 and 2018, funded by my business. Why? Because I was doing consulting over there. The business funded the places that I was staying. The business funded my meals, my entertainment, and also my rental of car when I was down there from Turo. And I got to live in wonderful places. I got to drive nice cars. And it was funded by my business.

and completely legit, completely legit. So when we think this way, we can say, you know what? We can have both. I can have a wonderful business that is making a lavish, steady, dependable income consistent with integrity and mutual benefit, and we can enjoy a wonderful lifestyle. And also I recommend making space for hobbies, family, friends, and creative expression so you can remain in flow.

Because I found that at times when I wasn't prioritizing that, I felt very cut dry, very serious, very unpleasant. I didn't feel as social. I didn't feel as flow-based. So that's why I recommend both. Again, this is all what I'm sharing with you on this channel based on personal experience, having been an entrepreneur for 16 years and counting, and then also working with thousands of businesses.

Number three, invest for the long term, which is what I would like to focus on today with a spreadsheet that I would like to share with you. If you would like a copy of this mind map and also the spreadsheet, the link is in the description. So consider investing for the long term. Here's a way of looking at it. Your income becomes powerful when you, or we could say more powerful when you give it a second job. You're giving money an opportunity to work for you.

Making more money passively, okay? By investing a portion of it regularly, you're planting seeds that grow into future cash flow, asset growth, and financial freedom. Also, compounding. When it comes to investments, we benefit from compounding returns on investments. Now consider as we continue, this video is not intended to give financial advice or tell you what to invest in.

This is just high level providing a spreadsheet and discussing it. I recommend doing your own research and if applicable, work with a financial planner or someone that is certified and has the credentials.

And also, there's plenty of information on the internet you can study, as I did, and come up with whatever investments that you would like. For me, it's index funds, it's stocks, it's real estate. And with respect to index funds and also stocks, in the area for me that I'm familiar with is technology. So,

What I have found is areas that I genuinely enjoy, genuinely like, and I find interesting is where I like to invest. And these are just some of the places that you can invest. There are investments, like for example, people buy cars as investments, people buy art as investments. There's many different ways of investing.

So compounding interest, that's what we benefit from when it comes to investing. And it's better, I recommend, to start sooner than later. Although if you do start later, you can still make up for it by starting now and not next month or next year or two years from now. Compounding isn't just about interest, though. It's about time. So consider that. The longer your money stays invested, the more it makes.

Even small amounts invested consistently over decades can outperform large lump sums invested later. Now, entrepreneurship creates and multiplies wealth. Entrepreneurship creates and multiplies wealth. You can reinvest back in your business, certainly, and also it provides you income, which you can then take and invest, and that multiplies your wealth as well.

So through entrepreneurship, you can generate a lavish, steady, dependable income consistent with integrity and mutual benefit. To learn how to do so, we've created a number of videos. And also, as mentioned, I wrote a book. I recommend reading the book. And number two, you can enjoy a wonderful lifestyle, freedom, flexibility as an entrepreneur. And also you can with the increasingly lavish, steady, dependable income, net income. You can invest money.

for long-term growth, wealth, and your future family, etc. So let's pull up the spreadsheet here. So this spreadsheet, which is available to download in the link in the description, is one that you can work with in Google Sheets. And it has three tabs in the bottom here, net worth, retirement, and investment.

Net worth is a simple spreadsheet where you can put in and feel free to modify this to fit whatever style of organizing you would like. I give this spreadsheet to clients when they're interested in all three. I recommend all three, but some prefer focusing more on the revenue enhancing side. But throughout our conversations, our coaching, our consulting, I do bring this up.

And when they say, okay, let's move forward with this. I'm interested in considering long-term wealth. I share with them this particular spreadsheet here and I'm sharing it with you. You can download a copy, make a copy of it, Google Sheets and modify it to benefit you. Consider in 2004, I read a book called Think and Grow Rich by Napoleon Hill. And from reading that book, prior to that, I was in $50,000 debt.

ideas started to emerge and I created a finance spreadsheet and I modified it over the years and I included in my entrepreneurial program. I'll link in the description to my entrepreneurial program. What I also ended up creating over the years based on research of investing, long-term wealth, et cetera, just a lot of research and study is this very simple spreadsheet which I used over the years to acquire financial freedom.

Very simple. Again, this is not designed to give you financial advice. I recommend a financial advisor, a professional for that, but it allows you to do some simple calculations so you can know where you're going and you can mathematically know how you're going to get there.

So net worth calculator, this particular tab right here is very simple. There's a date section. There's a section for inputting your checking account, savings account, your assets and investments value, business account, credit card, if you own anything on credit card. And it gives you a total for, and I like to do this monthly. As you can see here, I put some dummy data, January 1st, February 1st, 2024, March, April, May, et cetera.

And I like to know what the net worth is for myself. And you can get more sophisticated with this, but I just want to know my net worth at the end of each month. So I calculate this over here. We've got a growth chart or a sheet. It takes this data, essentially, and puts it into this chart.

into this chart here so you can track your net worth. Very high level. This is very helpful because an entrepreneur may not be seeing the kind of progress that they're making. They might also, as a result of not having access to this very simple bird's eye view of their net worth, know which moves to make, where to invest, where to reduce expenses, while also enjoying a wonderful lifestyle.

All at the same time, this spreadsheet right here, this particular tab on the spreadsheet to be more specific, offers you that bird's eye view. Number two is the retirement calculator. But before we get into that, there's number three also an investment tab, investment calculator. So let's look at this here. Assuming that we are in, and we are in 2025, and that you're 25 years old, let's say you start off with $25,000.

So you had some part-time jobs. You worked while you were a teenager. You're now at the age of 25. Maybe you got a few years of experience in your career. And you have with you $25,000. You now move into investing. So you take that $25,000 and consider this for a moment. The average return on investment for the S&P 500...

for the last 30 years, on average, is 10.49%. On average, this is a ballpark average. So we're going to put that in there as the interest rate. And let's say every year you contribute an additional 26,000. Now, by the time you are 30, you will have factoring compounding interest,

based on the returns on investment on average. Sometimes you get more, sometimes you get less, sometimes considerably more, sometimes considerably less fluctuation. But on average, you will have $201,000 by the time you're 30. Now, as you continue this, it might not seem like a lot. Maybe it might seem like a lot. By the time you're 40, you have almost a million dollars, $970,000. By the time you're 50, it's $3 million.

By the time you're 60, it's $8.7 million. And by the time you're 65, it's $14 million. This is another reason why I recommend starting sooner than later, ideally sooner than later, because of the power of compounding interest. And you can see it's not a considerable amount invested.

Now, you don't have to invest in S&P 500. You can invest in real estate. You can invest in whatever you'd like. And you don't need that high of return on investment, although there are a number of investments out there where you can get a high return. And by the way, when you're growing your business, you can also reinvest back in your business. This is just a ballpark. But let's say...

To be on a very conservative, modest side, you can go with a very modest 10.49% return. Again, this is factoring the last 30 years, 2024, on average. So this is helpful to give us another bird's eye view. So we have a bird's eye view with net worth as to where we are now.

We have a bird's eye view calculator so we can say, okay, if we want to get to this point and modify these numbers to fit your age, year, et cetera, and how much you're starting out with, interest rate, annual addition, et cetera, and it'll punch in the numbers here to guide you along the way to financial freedom. Now, the next is even more detailed, the retirement tab on the bottom here. Here, we're considering the following.

For the sake of this conversation here, we're looking at it from the perspective of initial investment being $30,000, your age 25, year 2025, an annual contribution of $30,000, and a return on investment of 10.49. We're also factoring an average inflation of 2.5. And what that means is every year, like for example, we take $120,000,

That buying power is reduced next year based on, let's say, a 2.5% inflation rate.

it would take you $123,000 to buy, again, this is all based on average, what you spend $120,000 this year. And then it goes on accordingly. I factored that in there. In the following year, $126,075. In the following year, $129,000. So if a person says, I would love to live off $120,000 and they only think about that when they're planning for the long-term,

and they don't consider inflation, then that is not as accurate because it won't have the buying power over the long term. For example, assuming 2025 inflation on average 2.5%, 120,000, the equivalent of that

In 2050, it's $222,473.29. That's why in this calculator here, we're factoring not just the interest rate that we would get, let's use the S&P 500 average, but also inflation.

which ballparks us around 7.9% return. So we factored both inflation and also your interest rate. And you can play around with these numbers here and get an accurate calculation based on whatever you'd like. But this is just for the sake of articulation.

Now, let's say we're investing $30,000 every year from 2025. And the initial investment, as mentioned, you had a part-time job, you started your business, you worked in your career, now you're becoming a full-time entrepreneur, and you've got $30,000 you're starting out with. Assuming that every year, right from the beginning, your business is profitable, and that's why I created this book here to help you with that,

that you can put aside $30,000. Now you've been making 120,000, 150,000. If they just put a portion aside, just a small portion aside, they can benefit from compounding interest, the benefits. So again, assuming the fall, 30,000 invested, 10.49% return on investment,

an annual contribution of $30,000 while factoring inflation at 2.5%. The inflation part is going to matter later on because I put this green section here. You'll see highlighted in green. This is assuming, let's say the individual would like to not work anymore at the age of 50. At the age of 50, they just want to stop working and just start withdrawing or liquidating their assets and just live off

their gains of their assets. And so let's say they'd really like that $120,000 a year income. They really enjoy it. You know, $120,000 before taxes, after taxes, that gives them a wonderful income in 2025, whatever that may be, wherever you are. After taxes, this $120,000, let's consider it to be gross. After taxes, whatever that may be, that is considered a wonderful income for you. Let's assume that.

That is actually, as mentioned, in 2050 going to be the same level of income at 2050 would be $222,000. Now, that's stated. What happens is...

So let's say at the age of 50, they're going to start withdrawing from their assets. You would withdraw from your assets. And every year, it'd be slightly more to have the same kind of lifestyle that you're having right now with the 120,000. So now let's look at these numbers here. Based on 10.49, by the time they're 50, they have $3.2 million or $3.287 million. And they're going to start withdrawing.

Because they have invested early and just investing an additional $30,000 and the compounding return that they get on their investments annually, that investment portfolio is still going up. Even when they withdraw $222,473 that year, next year, their investment portfolio is $3.4 million. As a matter of fact, they keep withdrawing the equivalent of that $120,000 in 2025 and

factoring inflation. And let's say by the time they're 65, their investment portfolio is $6 million. So technically, they can withdraw more and even live more lavishly if they would like and do things like travel and so forth. By the time they're 80, it's $14 million. So consider those that are interested in

passing on generational wealth or to your kids and grandkids, etc. It's not like maybe by the time you're 88, you want to be worth $26 million so you can take the money with you to your grave. It's so that you can then give to your family, etc. Or give it to charity or something like that. So in summary, starting off with $30,000, annual interest rate of 10.49%,

annual contribution of $30,000 at the age of 25 in 2025, factoring with inflation 2.5%, you can have the $120,000 lifestyle that you're having right now and enjoy your lifestyle. And then by the age of 50, you are still having that lifestyle while you are benefiting greatly from

from the fact that you invested earlier and you now get to pass that wealth over to your kids, your family, et cetera, if you would like. With the 10.49%, again, average for S&P 500, if you bought some index funds on average that mimic the S&P 500 on average,

And, you know, we see real estate perform better in particular parts of the U.S., Canada, etc., which give us a higher return. Again, I'm not giving investment advice here. That's up to you to do your research and due diligence. But I found that I'm able to get these kinds of returns with just a little bit.

of research, not even a lot. And you can see by the time this individual is 40 years old, they're a millionaire. By the time they're 50, they have $3 million net worth. They're multimillionaires. By the time they're 65, they're

because they were drawing here, which is different than the other investment calculator. Their portfolio is $6 million. But let's just say they didn't withdraw it. Flip over to the other one. By the time they're 65, they're going to be worth $14 million. So I recommend downloading this calculator. I recommend making a copy of this calculator. When you get access to the calculator, you can in Google Sheets make a copy of it and modify this to fit your needs.

If you do modify it, consider as well there are formulas in here, so you don't want to modify a particular area. That's why I made it very easy on the top here. If I change the annual addition to $50,000, it will factor it all in there. Up until this point here, where you're no longer investing that $50,000 every year, you're starting to withdraw it at the age of 50.

So there it is, an investment calculator, a retirement calculator, and a net worth calculator that is very simple, very easy to use that I put together for you. This is what I work with over the years to acquire financial freedom and also to share with entrepreneurs so that they too can do the same. And they are on course with this and they may have modified it

for their lifestyle. So none of this is written to be in stone saying that you have to do it this way. But you could see how with the power of compounding interest starting earlier and just a little bit of planning, it can lay a solid foundation for your money, as I put here, for your money to do the work for you. That's why I titled the mind map, stop working by making your money work for you.

So I trust you enjoyed today's video. If you would like a copy of this mind map and the spreadsheet, the link is in the description. Thank you very much for watching. I'll talk with you soon. Take care.

It's true that some things change as we get older. But if you're a woman over 40 and you're dealing with insomnia, brain fog, moodiness, and weight gain, you don't have to accept it as just another part of aging. And with Midi Health, you can get help and stop pushing through it alone. The experts at Midi understand that all these symptoms can be connected to the hormonal changes that happen around menopause. And Midi can help you feel more like yourself again.

Many healthcare providers aren't trained to treat or even recognize menopause symptoms. Middie clinicians are menopause experts. They're dedicated to providing safe, effective, FDA-approved solutions for dozens of hormonal symptoms, not just hot flashes. Most importantly, they're covered by insurance. 91% of Middie patients get relief from symptoms within just two months.

You deserve to feel great. Book your virtual visit today at joinmidi.com. That's joinmidi.com.