Step By Step: How You Can Become Financially Free In 5 Years | Mark Moss

➡ Mark moss talks about how to live a billionaire’s lifestyle without actually being a billionaire. The author explains that it’s not about having a billion dollars, but about having the lifestyle that a billion dollars can provide. He suggests that instead of thinking about the total cost of things, we should think about the monthly cost, making it more achievable. He also talks about the importance of identifying your ideal lifestyle and working towards it, and how passive income can help you achieve this.

➡ This text is about planning your finances to achieve your short-term and long-term goals. It suggests figuring out your current income and expenses, and then setting a target for passive income. The text also talks about ways to increase your capital, like starting a side business or investing wisely. It emphasizes that the more effort you put into your investments, the higher your returns will be.

➡ The speaker discusses different ways to make money, such as loaning money on real estate, earning royalties from assets like books or courses, and earning dividends from stocks or bonds. They also talk about the importance of setting goals, citing a study that showed people who write down their goals are more likely to achieve them. The speaker also mentions how they own properties that not only don’t cost them money but actually make them money. They encourage the listener to watch another video to learn more about how they can do the same.

Here I am on location at my ranch. Most of you guys know I live at the beach in California, and I also have a ranch out here in Texas. I also have a house in Mexico. And I was having an event here called the ranch experience, where I was showing people how to increase their wealth, not just money, but their time, freedom. And so I want to give you today one of the lessons to show you how you can achieve this in a short period of time.

But let me just break this down for you first. So the first thing is, you don’t want a billion dollars. You want the lifestyle that a billion dollars affords you. So, for example, what does that mean to you? Everybody has a different story of what that is. So, for example, for me, it’s having options for my family. So we got the beach. If something gets crazy, a lot of you were buying freezers for your garage and putting a cow in there.

If something were to happen on supply chains, I just bought a ranch and I got cows here, right? If things get crazy in California, I come here and, you know, I love the beach. I love going to Mexico. I love surfing. And so I’m building a house down there as well. So for me, that’s like having the lifestyle that a billionaire has. Multiple houses, multiple states, multiple countries, and then, of course, the time, freedom, the money to travel to those places.

Now, for some of you, you might go, okay, so I don’t need a billion dollars. I just want that lifestyle. So, three, $4 million for that house. Three, $4 million for that house. Three, 4 million. So I. Okay, so I need $12 million. But you see, that’s still the wrong way to think about it. The way that we think about it is what is the monthly number? So, for example, you don’t need three or $4 million for a ranch.

What you need is about twelve or 15,000 a month. What you need is not $50 million for a g four. What you need is about $1,000 a month for airline tickets. What you need is not 100 grand or 200 grand for that new car. What you need is $1,000 a month for the new car. So when you break it down into a monthly number, it becomes much more attainable.

But here’s even the better piece. So somebody last night at the event was talking to me and they said, mark, man, you have the ideal life. If I could just have what you have, a house on the beach, a ranch in Texas, a place down in Mexico, I’d be set. So I need like $50,000 a month to achieve that. But I said, no, you don’t. Because, you see, this ranch doesn’t cost me ten or $15,000 a month.

Instead, this ranch puts money into my pocket. You see, there’s a way to have the life that you want and not have to pay for it. There’s a way to achieve the billionaire’s lifestyle on just a regular income. So it starts with number one, trying to identify what is that ideal lifestyle. So how do we do this? Think about it like this. If I wanted to go somewhere in the old days when I used to look at real estate up in Los Angeles, I’d look up the real estate in what was called a Thomas guide.

It was like a map book. And it took a long time to look up the street address, go to the page, figure out where it was, and then map myself there. Nowadays, we have technology, a gps. I use google maps, or I use waze mostly. And number one, I have to put in the location. Where is it that I’m going now? I don’t say, take me to a cool place.

I don’t say, take me to a warm place. I don’t even say, take me to Los Angeles. I have to put an exact street number in. Now, if I put the exact street number in, I’m going to go right to the street. If I say, take me to Los Angeles, it could take me months. It could take me years of driving in Los Angeles before I found the place I wanted to go.

So one, I start with an exact destination. Then, number two, where am I starting from? I don’t say that I’m starting in also California. I have to put an exact gps coordinate or a location of where I’m at. Now, once I have those two exact spots, it gives me route options. Do I want to go by car? It’s going to take an hour. Do I want to go by bike? It’s going to take 7 hours.

Do I want to walk? It’s going to take 24 hours. And it gives me my options. Okay, so once I have those three data points, I can map where I want to go. Now, this is much easier than it sounds. And if most people would just spend like an hour trying to figure out those coordinates, most people that I’ve worked with are able to achieve this in less than five years.

So what I want to do is I want to walk you through the math. I’m going to give you the tools that you can do this. So let’s go ahead and go through this work exercise so you can have it. All right, so real quickly, what we’re going to do is figure out what your freedom number is. Remember, you don’t need a billion dollars to have the lifestyle a billionaire has.

And what does the lifestyle a billionaire has? They have the time and freedom. When you think of what wealthy is or what would being wealthy mean to you, most people that I’ve polled say that it’s having the freedom, the time, freedom to do what I want. So again, you don’t need a billion. That’s much lower. What is your freedom number? Most people have never thought through it this way.

So let’s walk through this now. I do want to let you know that I have a free tool that I can give you to help you with this exercise. You can download it for free right here. Just go ahead and snap that on your phone. Or there’s a link down below if you want to download it. You could just use a piece of paper and a pencil, too.

You don’t need this tool, but it makes it easier. It’s a calculator that I’ve built in Google sheets. Okay, now here’s what we want to do to find your freedom number. Remember, not a billion dollars. There’s two numbers that I want to help you identify. Number one, the first number is, what is your minimum when you build a product? If I’m building a software, a SaaS, something like that, what we want to do is we want to launch what’s called an MVP.

It’s a minimum viable product. When I launch a new offer, a new landing page, whatever it is, I want to get it out as quickly as possible. The minimum viable product that can be. And then we build and optimize from there. So what we wanna do in this is we wanna come up with what is the minimum number I need to be free today. Now, what is that number? I’m talking specifically, what is the minimum number so you don’t end up homeless? Okay? This is only so you can continue to live.

So what is your rent or your house payment? What’s your car payment? How much do you need for food? Not eating out every night. What do you need for food at home and, like, your electricity bill? What is the minimum number you need so you don’t end up homeless? Right. The reason why I wanna start with that number is because that’s the first number I have to achieve with passive income.

So I have my freedom number. Now I no longer have to work to stay alive. Now I’m free to go work on bigger things, higher value things, you don’t have your dream life, but you don’t ever have to worry about money again. Now, this number is usually much lower than most people think. Think $5,000 a month. $10,000 a month. But we don’t want to think general. We want to know the exact number.

Just like the gps. We know the address. Okay? The second number we want to know is what is our ideal number? Okay? So take some time to really think through this. All right? This is where you need to spend some time. What is my ideal number? What does that mean? Well, I’d like to have a better house and a better neighborhood for my kids. Okay? So instead of 2000 for rent, I want to spend 4000.

Whatever that number means to you. This is not the billionaire yet, okay? This is just what’s my ideal? I’d like to take two vacations a year with my family. How much does that cost? $5,000 each. Great. So now it’s 10,000 a year. I need about $800 a month for my vacation fund. I’d like my wife and I to both drive brand new cars. How much is that? $800 a piece.

Okay. That’s $1,600. I’d like to send my kid to private school. How much is that? $1,500 a month. Great. Add that in. So now you’re putting in what you’re ideal. So now you have two numbers. Two exact numbers. How many times would you like to go out to dinner for a week? I’d like to go out to dinner once a week. I need $200 for going out to dinner.

I’d like to join the country club. It’s dollar 500 a month. Okay? So the minimum number. This is the first number you can achieve. Very low, very obtainable. Second number is your ideal. I want to look at both of these. We should always be doing this in every day of your life understanding what is my short term target and what is my longer term target. So your brain can work through them.

Okay? So that’s step number one. This is the gps. Where am I going? The exact address. Number two, how much monthly earned income do I have now? Again, you just have a piece of paper and a pencil or you can download the free tool if you want because it’ll put it together in a calculator for you. So what is my monthly earned income? How much do I earn from my job? How much do I earn from my side hustle? How much does my wife earn? Or husband, or whatever it is.

What is your earned income? Right here. And then how much passive income do I have? For some of you it might be zero, for some of you, might be a little bit passive income. I have a rental home, I have two rental homes. I have some bonds and treasuries, I have some dividend paying stocks. Whatever it is. We’ll go through more ideas of passive income in a minute, but then write down your passive income.

My earned income, my passive income. Now that we have more of our starting point and we have our destination, it can start making sense. If you’re using my free calculator, it’ll start to output a graphical visual like this. So you can see what your earned income is and your passive income, and you can see your total monthly expenses. So I want to see my total passive income exceed higher than this one.

The reason why I like to look at it like this is because it starts to gamify the situation for us as human beings. We love competition, even if it’s competition for ourselves. We love to play a game. And what happens is maybe you have zero passive income today. And my goal is $3,700 of passive income. I have zero today. Well, can I go out and get $50 of passive income? Great, I did.

Can I get 100? Can I get 150? Can I get to 1000? Can I get to 1200? And what happens is as you start to see this number going up, it starts to change your day to day decisions, it changes your buying habits. All of a sudden you’re like, oh, should I buy this thing or take this trip? Or would I rather see my passive income go up again? And as you get closer to your goal, you gain momentum and you want to achieve it even faster.

That’s the beauty of gamification and doing a competition. Now there’s one more piece that you really need to do. And here’s another free tool I’m going to give you. And this is an accelerator scorecard. And this is how many assets do you have? How much money? Because I have to go buy the cash flow, right? So how much money do I have to buy the cash flow I need? Do I have 500,000? Well, you need to understand this.

And so basically you’re adding up what your assets are, what your liabilities are. Again, you can download it for free here, or we’ll put it in the show notes down below just to help you out. Okay, so now once we have that information, we built out the GPs, we’ve opened up Google Maps, our destination and our location, we know where we’re at and we know where we want to go.

Our dream, ideal location. Now, what we’re going to do is we’re going to build the bridge to go from where we’re at to where we want to go in the shortest amount of time. How do we do that? Okay, there’s three terms that you need to understand. Number one, we need to know how much capital we have, right? That’s part of the accelerator scorecard. How much capital. Now, if I want to speed this up, I need more capital.

One. Number two, it’s the rate of return that I earn on my capital. I showed you that already. And three, time, how much time do I have? Do I want to wait seven years? 14 years? 38 years? It’s the time. Those are the three variables that we can achieve that goal faster. Let me show you how this works, first of all, time. Now, the rule of 72 says that all I do is I take the rate of return, 5% divided by 72, and it tells me how many years until my money doubles, 14 years to double my money.

Now, if I go to 10% return divided by 72, I wait seven years to double my money, 20%. 3. 5. So what do I mean? I need 500 grand to get to my number, but I only have 100,000. So if I can earn 20% return in 3. 6 years, that’s 200 grand. And another 3. 6 years, that’s 400 grand. So now I’ve only waited about plus or minus seven, seven and a half years, maybe eight years to get to that goal.

Can you wait eight years? How old are you? Are you okay waiting eight years? If you don’t want to wait eight years, then you have two options. Option number one, add more capital. Option one, add more capital. How do you do that? Well, you need to make more money. How do you do that? Well, this is Robert Kiyosaki’s cash flow quadrant, and he says that you earn money either as an employee, self employed, a business owner, or an investor.

Now, we don’t earn money in the investor. We take our earned money from these categories and put it into the investor role. So if you’re in the employee, it’s pretty hard to make that extra capital because your boss is only going to give you so much more of a raise. So what you really want to do is be in the self employed or the business owner column so you can get more capital.

Now, if you’re an employee, it’s not over for you. All you have to do is figure out a way to earn extra capital in a self employed role. So do you have some sort of a skill that you can offer to the market on the side. A side hustle. Now, every single month, I write a report on how to start a new seven figure side hustle. It’s called the Capital creator.

It’s a capital creator playbook. Every month there’s a playbook on how you can go make seven figures. Extra ideas like niche newsletters, how to turn, you know, automobiles into cash, arbitraging real estate, things like that. And it’s a 2030 page report on how to do it. And then we do a call on how to do that. Feel more information link capital creator playbook down below. But you can have some sort of a skill that you can provide to the market to earn extra income, or you can start a business to earn extra income, or you can just wait the seven years.

Either wait or earn extra income. Okay, number two, the other lever that you can pull is increase the rate of return. Now, I like to say that passive income is a scam. There’s no such thing as passive income. All income requires at least a little bit of work. But the less work you do over here, the lower your return is going to be. If I just buy treasuries, it’s pretty easy.

I mean, you have to figure out how to go on Treasurydirect dot gov, and you have to figure out how to buy the treasuries, right? So it’s a little bit of work, and it’s pretty safe, right? This is what we call the risk free return. Treasury’s not going to default on it, most likely. So I’m going to earn a very low yield. If I do more work, I’m going to make a higher rate of return.

So, for example, in my business, I sell information. The information is mostly profit, because it’s my ideas I put down into a course, and I can sell it thousands of times, tens of thousands, over many years. And my rate of return is very, usually, usually very high. Could be 70, 80, 90% profit margin. So if I want to do more work, I can earn 50% to 100% less work.

This, like, maybe rental properties like this house that I’m shooting from is my ranch property that I’ve turned into a rental property. And I make anywhere from five to 25% on that. A little bit less work would be like interest. So let’s say that I’m doing peer to peer lending. I’m loaning money, hard money loans on real estate. I’m making eight to 12% on that. Five to 12% royalty is an area that I really like.

I can do licensing. I’ve developed a course. I’ve developed an asset. I’ve written a book. I have some sort of an asset that I let other people use, and they pay me a roll royalty for using that. My friend Robert Kiyosaki has over 35 licenses out for rich dad cash flow, Robert Kiyosaki, et cetera. That’s an idea of royalty. And then, obviously, dividends. So I can either, one, wait longer, two, I can add more capital, or three, I can increase the return that I have.

Those are the three ways. Now, here’s a couple ideas of ways you can do this. Earn would obviously be trading your time for money. This is providing your services to the marketplace. You’re a doctor, you’re a lawyer, you’re a contractor, et cetera. Consulting, coaching, rental properties, houses, short term rentals like this. You could rent your cars. You could have vending machine, ATM’s. You buy the asset, you rent it out.

Interest again, peer to peer lending, real estate, hard money lending, private equity, things like that are earned interest, royalties. I gave you that. Books, games, your brand name, online courses, things like that. And then dividends. As I said, stocks, dividend paying stocks, treasuries, bonds, maybe partnerships, things like that. Okay, so, now that we know this, it’s time to do the work. You know what to do. You want to write down your goals.

And I know this sounds simple, but here’s the thing. Harvard MBA did a study of people going into the MBA program. 97% of people did not have written down goals. The 3% that did achieve their goals and exceeded them ten times of the 97% that didn’t have them. So, I know it sounds simple, but it’s extremely powerful. So now you have your number. You know what you need to do to achieve the goal and speed it up.

Write it down. Now, I did say that I have this ranch property. I’m able to live the lifestyle like a billionaire, and it costs less money. So you might think to have this house here, to have my house in California, to have this ranch here in Texas, to have my house in Mexico. Well, I need ten or 15 grand for that, 110 or 15 grand for that one.

I’d like a house in Colorado to ski, ten or 15 grand for that one. Oh, I’d love to have one at the lake, ten or 15 grand for that one. So, I’m adding that into my numbers. But what if these assets didn’t actually take money out of that monthly number, but instead they actually contributed to the money every month? That’s exactly what this ranch does for me. I’m not paying for this.

It’s paying me. Now, if you’d like to know exactly how I do that and how you can do the same thing with almost no money out of your pocket, and you can have assets like this all over the world paying you, then you might want to watch this video right here, or I’ll link to it down below. Otherwise, let me know what you think about the video. Thumbs up if you like it.

If you don’t like it, thumbs down. That’s okay. But at least tell me why in the comments down below. Of course. Subscribe if you’re not already subscribed so I can keep giving you content like this. And that’s what I got. To your success. I’m out. .

See more of Mark Moss on their Public Channel and the MPN Mark Moss channel.