Every Tuesday Chuck releases a new Trader Tip video on YouTube. This week we will discuss how without the right mindset, more money, without money habits equals more pain. Watch the Trader Tip Episode for more information!
You can read the episode transcript below or watch the video that follows.
If you have any questions, please reach out to us. We look forward to being a continued part of your trading education!
I want you to understand that the success, your success in building your financial foundation will not be determined by your salary, and it will not be determined by your savings. It's going to be determined about your mindset about money. Without the right mindset, more money, without money habits equals more pain.
Now, what is Infinite Wealth?
Last week, we talked about the secret to happiness. We talked about living with gratitude and living in the present moment. Another key element of living with joy, and living in happiness is being infinitely wealthy. I cannot overemphasize this enough.
I first learned of the concept of Infinite Wealth from Dr. Tharp. And the first workshop I did with Van was in February of 1999, and he co-taught that workshop with Robert Kiyosaki, who many of you know. That workshop was called Infinite Wealth. I learned this concept from Van, and I love it.
Infinite Wealth is when our passive cash flow is greater than our monthly expenses. We define passive cashflow is any activity that requires less than two hours a week, or less than 10 hours a month to generate revenue. Now, this concept is really unique. Because if you look at all the other wealth programs, the other wealth programs are either built on accumulating a greater net worth, accumulating more money, or reducing your living expenses, and trying to save the difference. One is about accumulation, the other is about deprivation. At the end of the day, neither one really does much to satisfy our core needs.
This concept has simplicity behind it, which I think is incredibly powerful. Because when we attain Infinite Wealth, and that can happen at 5000 a month, that can happen and 50,000 a month that can be 500,000 a month. In other words, you don't have to have a lot of money to be infinitely wealthy. That's big, okay. But when we attain Infinite Wealth, what that means for us is that we work when we want on what we want.
We actually never have to work again, we can retire. Because every month, we have more money coming in than what we spend in our monthly expenses. When we get to this point, it's a powerful moment. Because at this point, we get to focus on doing what we love. So many of you out there would love to live your life purpose, you'd love to live your mission, you're just like "I don't have the time or the money." This is how you get there.
I'm a big believer that we are creatures of focus, we get what we focus on. If we focus on Infinite Wealth, we'll get Infinite Wealth. Now, once we get there, we get to not only do what we love, but we also can take more risk. The reason we can take more risk is that our basic necessities of life are covered, we can't lose. So any new money that's coming in, we can be aggressive in taking risk.
Then what that does is that allows us to increase our level of wealth. We might be able to become infinitely wealthy at $3,000 a month. Awesome. But we might not want to stay there. What do we need to do? We need to up. We need to up our level of Infinite Wealth. If we could go from 3000 to 5000, to 10,000 to 20,000.
We get to live a greater, greater life without working. And again, going back that puts us in a powerful place, because we get to focus on building new wealth because everything else is covered. As we raise our level of Infinite Wealth, if we get to a point that we're making $50,000-$100,000 a month in passive cash flow, we can live an amazing lifestyle. Because every month more of it comes in.
I want you to understand that this is at the heart. Okay, this is at the heart of what I am working to teach you, because people come in and they want to be traders. But if we just examine what is going on. When we become a trader, there's a couple things I see people come to trading and try and replace their job. They want that consistency of a salary. So they get drawn to the strategies that kind of mimic a salary. But that is dangerous. That's not how trading works. You know this.
If you've been watching this, the Trader Tip Tuesday's I talk about this, this is not how trading works, trading is full of streaks. You have hot streaks, and you have cold streaks. You're going to win and you're going to lose, and you inevitably have to be able to handle losing, where it's not like a paycheck. Yes, you make some money, then you start losing money. We talk about the idea of creating and searching out big R winning trades where we get big influxes of cash. That's awesome. But the reality is, if we look at Infinite Wealth, trading doesn't give us that. I know a lot of traders who make a lot of money, but A) they have to work to make that money, B) the money's up and down.
They actually never quite know when that money is totally real. Generally, I mean, they might know it's real, but they have to work to get there, and then they're just accumulating cash. But in general, traders have no place to go with the cash other than make more trades. I'm trying to shift this for you. I want to trade to be a vehicle that takes you to Infinite Wealth. But I want you to understand that trading alone will not take you there. So there's like a hierarchy here, there's a foundation. We need at the heart of what we're doing, we need Infinite Wealth as the foundation.
This is big, this is what I want for you, I want freedom for you, freedom and everything else will come. If we have freedom, then we really will work on being able to be happy and pursue our joy. Because we take a huge source of our stress away, which is financial stress.
We teach this through the Five Pillars of Infinite Wealth, and what are they? They're managing cashflow. They're saving structures. These are the two things that really help take us into Infinite Wealth. It's the framework, then it's investing strategies, tax efficiency, and asset protection.
So if this is something that sounds compelling to you, and it should, I'm telling you, if you follow me, and you look at all the courses we offer, I will tell you, this is the most important one. It's the most important one.
I can teach you about how to trade options. I can teach you about the method. I can teach you about the BB gun system. I can teach you about all these other things that are super, super cool, but they don't matter if you don't have your foundation in place.
Building your dream life by implementing Infinite Wealth is the big the big goal for you. If you want to find out more information about this, click on this 5pillarswealth.com/dream
Check it out. Because we got a workshop starting literally this Sunday, but it's also you can watch it whenever you want you sign up. It'll be available from Sunday on and you can work through it. I cannot recommend this enough.
So stay tuned every Tuesday for additional webinars like today's where we'll be sharing different ways to think about trading to get your performance to an elite level. Have a great week. God bless. I'll see you next week. Hopefully I'll see you the Five Pillars of Wealth Building the Dream workshop. Bye.