Escaping the Paycheck Cycle for Authentic Wealth Growth

Ever been tempted by the gleam of a luxury car, knowing deep down it's more about turning heads than making sense for your wallet? Join me, Chris Anderson, on the Elevate Media Podcast, where we confront the seductive but perilous path of splurging for status. We dissect a true story from our team and uncover the psychological snares of social pressure and the instant gratification trap that can sabotage financial independence. I'll guide you through smarter spending decisions that the truly affluent swear by, and we'll unravel how to escape the paycheck-to-paycheck cycle for genuine financial growth.

In the quest for prosperity, discipline and cunning investments are your best allies. This episode dives into the transformative role of productivity tools in amplifying your income, the underrated investment in health, and the art of distinguishing whims from necessities. I'll share how to meticulously craft a budget that leaves no dollar unturned, inspired by the legendary frugality of icons like Warren Buffett. We're not just pinching pennies; we're mapping out a journey to tangible financial landmarks and devising an investment strategy to power your personal and professional aspirations. Stick with us, subscribe, and share your thoughts to join a community dedicated to lifting each other to new financial heights.

Transcript

Speaker 1: 0:00

Welcome to the Elevate Media podcast with your host, Chris Anderson. In this show, Chris and his guests will share their knowledge and experience on how to go from zero to successful entrepreneur. They have built their businesses from scratch and are now ready to give back to those who are just starting. Let's get ready to learn, grow and elevate our businesses. And now your host, Chris Anderson.

Speaker 2: 0:38

All right, welcome back to another recording of the Elevate Media Podcast. I'm Chris Anderson and this show. We created this show to help people like you, men and women, entrepreneurs out there, building businesses that will change your family's futures. And today we're going to dive into an important topic. I just had this discussion with one of the individuals on my team talking about you know, now that he's getting more financial backings through work for us, he's like maybe I should save up and get a really nice car, and so we're going to dive into that story and what I told him here in a second. But we're going to dive into this trap that a lot of people have fallen into I've fallen into it myself and that's buying things to look cool. We're going to explore why this mindset is holding you back and how to shift that to a more money friendly mindset that's going to help you grow your financial freedom and really do what the rich does. So, again, just talking to one of the guys on my team, he was excited because he's newer and he's, you know, getting more income. And this kid's young, he's 19, staying at home doing editing for us, doing production stuff for us, and he's just excited. He's excited to be able to be doing this all the while while we're helping him kind of build his agency as well of editors, which is a cool thing and he was asking me. He was saying, you know, because things have been growing for him and doing well on his end, you know, a huge was really thinking about saving up for a really nice car, and you know we've all found ourselves in this position, right, trying to constantly upgrade to the latest phone, car clothes, you know, splurging on things that don't really matter. We just do it to look good and feel good in the eyes of people that really don't matter. In the moment it feels good, but at the end of the month your bank account, you know, tells a different story, right, and this cycle just is not sustainable and it keeps us from investing in the things that truly will help you grow financially, to have financial freedom and again to do what the rich does.

Speaker 2: 2:46

And so when he brought this up, you know that's what I started discussing with him. I said, you know I'm just going to give you some guidance. You can do or take this with a grain of salt, do what you want, but this is what I would do and that's what my goal in this episode today is is to encourage you to rethink about your spending habits. I want to dive into a little bit of psychology behind it, why we buy these things just to look cool. I'm going to give you some practical tips how to invest your money wisely to build a prosperous future for you and your family, and I'm going to share what I shared with this individual who wanted to buy a fancy car because he had some more money. So but let's dive into psychology things first.

Speaker 2: 3:27

So there's social pressure. That's the first thing. We live in a world where social media advertising constantly is just throwing stuff at us images of luxury and success and according to a study by the American Psychological Association, the pressure to conform to these ideals can lead to a lot of overspending, financial stress and debt. We buy things not because we need them, but because we want to fit in or impress our peers, so that social pressure is really the driving force. A lot of the times, our ego plays a part in that and we just want to be liked, when, at the end of the day, if we could all just stop caring about that, people's finances would be in a better place. And we also have this thing in our head for instant gratification. This is where we get immediate pleasure from buying something new, from having a result happen instantly that dopamine effect. Buying something new, from having a result happen instantly that dopamine effect. And a study published in the Journal of Neuro Image found that our brand's reward system lights up when we make a purchase and gives us this temporary high. But how many times have you bought something expensive a coaching program, a car, a dishwasher, something, an appliance that's expensive, a dishwash, something, an appliance it's expensive and you have that temporary high, you're excited, and then the next day it's the opposite. You have that buyer's remorse. That's what plays part with that dopamine effect in the brain. You get that instant high, you feel good and then you feel crappy after you that that instant gratification happen. And there's long term impacts as well. You got to. You got to consider those.

Speaker 2: 5:12

When you buy non-essential items just to impress others or just to fit in, it can lead to instability in your bank account and, according to a report by CNBC, 78% of Americans live paycheck to paycheck and a lot of that is due to unnecessary spending. Yes, economic positioning and inflation, things like that play a part, but a lot of people still spend money where they don't need to Need to. We sometimes get our wants confused as needs, when that's not the case. Do we really need that brand new phone, whatever it is we collect? Do we really need to go to Disney World? But yeah, we're complaining about our finances. So this behavior not only hampers our financial growth, but it also increases stress and anxiety over time. Again, in the moment, that phone, that thing, that trip makes you feel great, but after, when you're having to pay it off, if you're using credit or things of that nature, that's where the stress comes in. So we've got to shift our mindset and we've got to have that change. We've got to break that cycle. Our mindset has to go from just consuming to investing.

Speaker 2: 6:29

And this is what I started to talk about my teammate's position, because he was all excited I wanted to buy that new car. So I told him, I said this is what I started to talk about my teammates position, because he was all excited I wanted to buy that new car. So I told him, I said you, this is what I would do and this is what I'm working on towards right now. You know, I could buy a really nice car, material things that would look good to others in the eye of, in the eyes of others. But I told him I don't care, because I have bigger goals that I'm trying to accomplish and I want to get to and I want to put my money, I want to save up money so I can put money towards things that are going to make me more money. Because once you do that, when you have enough things and just making you money with little work, little effort, then you have that reoccurring revenue, you have higher profits, then you have things that are making you enough per month that can be allotted towards that new car, that trip, things like that. But if you can build a foundation of business boring businesses, things that have good ROI, that you don't have to do a lot with, not a lot of overhead, you're going multiple of those you can really build, invest in other things, and then you have that passive income coming in that you can put towards paying for that nice car, paying for that nice house, whatever it is. So I mean he's in an ideal situation 19, doing well, learning about all this stuff, making good money, and he's ahead of the game. I told him I wish I would have started at 19 instead of at 29. So he's in a great position to do that and I said just don't you don't want to throw it all away just to you know to look good on social media now, because if you do it now, it's going to slow your success in the future financially, and that's a big part too.

Speaker 2: 8:18

Financial literacy Like it is so not taught here in America very well and it's a crucial thing that we're missing. You know, so many people don't understand basic financial principles that are going to help them make better financial decisions. I definitely didn't learn it. I made so many mistakes in finances growing up and even started a business. Just things I had to learn and I've learned along the journey. So you have to know the difference between appreciating and depreciating assets so this can help you guide where to put your money. Again, I'm not a financial guru. I'm not a financial anything. This is just kind of some guidance, some general knowledge.

Speaker 2: 8:56

Definitely seek out professional financial help when you're thinking about investing and putting your money in things and whatnot, but there are lots out there. You can invest in stocks, real estate, other businesses, like I mentioned, and that's a lot of times overlooked too, because if you can get to the point where you can buy a business that's producing well and then come in and either make it better or just take it over because maybe it's just someone's retiring Like a car wash, like an ATM, you get percentages from that. Each time you collect the money. You just have to know where your money is going. But those are fairly boring, decent ROI businesses. So other investments you can do is also in yourself Education. Take a course to improve your skills, no-transcript, even if you're looking for another job on the side while you're trying to grow your business, if you're trying to get up in the corporate ladder, improving in your education can help you get to those levels.

Speaker 2: 10:08

Tools and software that can help increase your productivity can help you get more done in less time. That can ultimately boost your income, because people want things done faster. If you can do it faster, you can charge a little more. You can also invest in your health, and this is important. Proper nutrition and exercise is going to pay off in the long run. So much because it's going to reduce your medical costs for one, but it's also going to increase your energy levels. It's going to increase your ability to fight off any sort of illness, know illness. I'm going to put you in a better position and when you're running on all cylinders the best you can, you're gonna make better decisions, you're gonna be happier, you're gonna have, you know, more energy to get things done, and so investing in yourself in multiple ways is going to help you as well. So how do we do? How we smart spin?

Speaker 2: 10:58

After we've done all this, you know you've really got to draw a line between needs and wants. Like I mentioned before, we get confused a lot of the times with wants. We think our wants are needs, and that's not true. Food, affordable housing, nothing crazy or fancy, you know be able to pay for healthcare and taking care of yourself and your family. So, whether that be, you know, exercising gym. I think gym is a need. If you don't have one in your house, I think having a membership somewhere is a need to keep you healthy. Obviously, you can do a lot of body weight at home, but if you're trying to, you know, do resistance training, getting a gym or just purchasing some cheap equipment like bands, a few dumbbells. I think that's a need to keep you healthy. So those are all would be needs Once.

Speaker 2: 11:54

Are non-essentials, like the newest iPhone. Do you really need to pay for $1,000 for a brand new iPhone, or can you wait until it goes down a little bit in price? Designer clothes Do you really need a Rolex right now? Do you really need Gucci anything? Do you need those kind of things right now? No, it's all for ego. You could get something that looks so similar to those designer clothes and no one would know the difference unless they looked at the tag.

Speaker 2: 12:25

So make sure you're focusing on spending on your needs and investing the rest, paying off debt and investing the rest. You can always create a budget knowing where your money goes. It's important to know how much is coming in and where that money is going, because if you don't give that dollar a job, it much is coming in and where that money is going, because if you don't give that dollar a job, it's going to disappear on you and you're going to be like how in the world did that happen? So, and there's a lot of great platforms and apps to do that. Again, I'm not a financial advisor or anything like that. So seek out professionals. They'll give you the great direction with that Clow Bear Money Coach on Instagram and Better Wallet, both help in that rain in that field, and they're really good with what they do. So check them both out. And this isn't just I'm not just trying to blow smoke Like this is a.

Speaker 2: 13:10

You know, successful people, rich people, do this all the time. Obviously, you get to a point where you're like Zuckerberg or Bezos and you just have money just coming out of your ears. You don't know what to do with and you know you could afford some more luxuries and there's nothing wrong with that. You know they built something that has provided a lot of income and a lot of jobs. Love them or hate them. You know those are different conversations. But for example, warren Buffett he's known for his frugality. He lives in a modest home, he avoids unnecessary luxuries. He drives some old car around all the time. He could afford Rolls Royce, he could afford whatever he wants, but he drives the same old car. He just focuses on smart investments and that's what's made him one of the richest people in the world. And that's what's made him one of the richest people in the world. But again, to get to that point, you have to have the discipline not to just throw away your money on stuff to look good on social media. So what did we learn?

Speaker 2: 14:08

The key takeaways from this episode, hopefully, is that prioritizing your investments over things that are just going to collect dust or going to put you in debt. If you can do that, if you can prioritize those investments, you're going to have much better outcomes with your finances and your business. Focus on the long-term gains rather than short-term pleasures. You can build a more secure and prosperous future. If you do that, all right.

Speaker 2: 14:34

So where do you go from here? First, review where your money is going right now. Track your expenses for a month. Figure it out. See where, where your money's going right now. Track your expenses for a month. Figure it out. See where all your money is going. You'll be surprised, probably, how many subscriptions you have. You don't remember or even understand how much they've increased. They'll give you a clear picture of what's going on and understand what you can cut out to save and invest a few more dollars.

Speaker 2: 14:59

And then set your goals. Figure out what you want to do and invest a few more dollars. So, and then set your goals. Figure out what you want to do. If it's trying to support your side hustle, put more self-fund a little bit at the beginning. If it's an emergency fund just in case anything's happened. Do that Like just set your goals, be specific with them and know what you're doing to get to those, and then you can create an investment plan. So how much do you want to put towards? You know, get to those and then you can create an investment plan. So how much do you want to put towards a bucket, an account that's going to go towards a future investment?

Speaker 2: 15:26

So say, you want to buy a business one day. What does that look like? How much do you need for that? Roughly Okay, so start saving for it. It sounds probably crazy, but you can do that. Maybe it's a. You want to get a real estate? So how much would you need for a down payment or something of that nature to get started in there? So set that up, figure out what you need and just continue to put into a key. The key is consistency and discipline, and that number can grow over time. It can compound as you make more money and are able to put more towards it. All right.

Speaker 2: 15:55

So we talked about the psychology behind buying just to fit in. We talked about the importance of shifting your mindset towards more investment style financial approaches. Give you some practical tips, and some ahead of the success story of Warren Buffett, but also the story I had with one of my employees, and so I want to encourage you to take control of your financial future. It might be it might seem challenging right now, especially with the time we're in, but if you can get that mindset right, you can have the discipline, have those strategies. You can truly make a difference of your future. Thank you for tuning into the Elevate Media Podcast today. If you found this episode helpful, please subscribe. If you haven't, also share this out so we can help even more people together, and if you haven't yet, leave a review. It helps us go even farther with this and continue to do these episodes to make a difference and hopefully impact your life. Stay tuned for the next episode coming up and until next time, continue to elevate your life, elevate your brain and we'll talk to you soon.

Speaker 1: 16:58

Thank you for listening to the Elevate Media Podcast and we'll talk to you soon. Thank you for listening to the Elevate Media Podcast. Don't forget to subscribe and leave a review. See you in the next episode.