5 Ways To Protect Your Money

One of my billionaire mentors taught me that there are 2 skills.  1, how to make money.  2, how to keep yourself from losing it. In today's video, I'm going to be sharing the 5 ways to protect your money. You don't have to have millions of dollars to need to learn how to protect it.  The reality is that making money and keeping money are 2 skill sets that you really want to be learning simultaneously.  Okay, 5 ways to protect money.  Number 1 is that you've got to have a game plan.  Now, there's a game plan on making money there's also a game plan on protecting it.  And money needs to have a plan.  You want to be a good steward of it.  If you're actually taking care of money and you're learning things like this, you're going to make it a lot easier to attract the right money into your life.  In order to protect it, you do have to have a way to make it.  Which takes us right into number 2.  Once you're making the money. . .  Because by the way, I give people free game plans all the time on how to make millions of dollars.  You can get in the link below my book for free. That'll really set you up.  But once you have your game plan, I'm going to assume that you do at this point.  Then the next thing that you need to do is you need to look for diversification.  Haven't you ever heard the adage that you shouldn't all your eggs in one basket? And yet it was Warren Buffett who said, "Yeah.  And diversification is for people that don't know what they're doing. " So, what's the truth? what do we need to know here? Diversification doesn't mean that you have to be in the stock market and then in 401ks and then in real estate and then in commercial and then in this business owner and then life insurance.  Those definitely can all be different investments.  Diversification really is actually about making sure that you split up your investments.  Even if it's in a single asset class category.  So for example, in the game of real estate.  Buying hundreds of single-family homes this year.  Each one of those homesthey's separated out by being distinct homes.  And there's only so many I put in each entity.  There's diversification there.  And what it means is that if one of those homes goes down, that doesn't mean that the other 200 homes go down with it. There's a separation there.  That diversification creates that safety.  So that technically, they're not all in one basket.  The third thing that I learned from Ray Dalio who's also one of my billionaire mentors.  Is he says you should be looking for asymmetric risk?  I feel 90% positive, I have spelled this word the wrong way.  But Google will help you.  Let me tell you what asymmetric risk is.  Asymmetric risk means that you've got low downside and you've got the real upside.  As one of the reasons why I love my real estate strategy is that when I put money in, there's you know because I'm buying homes --single-family homes below the median all within a certain box, my downside is really really low.  But my upside is really really high.  And so when every time I get into a deal, I'm not looking for investments into 401ks and IRAs and things that grow3, 4 or 5 percent a year.  That's not upside.  Basically, they're hobbling along and there's no real growth there.  Ray Dalio is talking about investments where you could double your money or you could triple your money where you could quadruple your money.  And that's what I do in real estate.  The low downside, massive upside.  So, asymmetry in your risk is definitely an important thing to look for when you're saying, "Well, where do I actually put my money? Put it in places with massive upside but a very very low downside. " Okay, number 4, incorporate. That means set up your proper business identities.  This is where you're creating your corporate veils.  Like I have a personal life and I have a business life. My business is all inside an entity.  Now, I've got Corpse LLC's and all these you know there are different kinds of entities.  They're limited partnerships, sole proprietorships.  For real estate, since most of you are really interested in real estate as members of this channel.  What we typically use is an LLC. This is actually a perfect created device it stands for a Limited liability company.  And every time I partner with someone new in real estate that wants to put money in and have access to my really good deals and we're doing things together, I always create a new LLC.  Or if you're doing your own investing, you'resetting up an LLC.  What that means is if you were to ever have a problem with one of your properties, then the risk that's exposed is only inside your LLCand, not your personal life.  I have to tell you after thousands of deals, I have never had a lawsuit issue on any of my single-family homes.  But we still do this anyway for just in case.  You definitely don't want to be that one guy or gal that you know gets caught in a bad precarious situation because you didn't-incorporate.  Now, for me to share the fifth one here. . .  I'm saying this in all seriousness.  But I want to ask for a little bit of permission to go off the ranch a little bit.  Because right now, we're talking very much about what's my game plan for making money? And you can make safe money or you can make unsafe money? How do I properly diversify it? How do I make sure that my risks have. . .  My investments have asymmetry.  How do I make sure I'm incorporated? This fifth one to me seriously, it is the most important of all of them.  Don't cheat.  Now, you might be wondering like, "Well, what do I really mean by that?" I'm just going to tell you right now.  Don't cheat. I'm a married man.  And I got 4 little kids and I loved my wife.  And you know, my wife and I we've been through a number of struggles to get ourselves where we're at today.  We've had mentors and coaching.  And right now, my wife and I, we lived most of her life 10 out of 10.  And I got to tell you, it's like the greatest wealth in my life --is just my family.  And I love that.  I can't tell you how many people I've met in the journey of making wealth who while building, their business, making their investments, making money, lost all of it that fast. Because they cheated.  They cheated on their spouse.  I'm talking about infidelity.  I'm talking about screwing around, messing around, hooking up.  Dude, the cost of divorce is so massive.  You should be investing every day in your core relationship if you're in one.  If you have a significant other and you guys share your finances together, I want you to be aware that when you mess things up on the home front, you mess everything up.  I have a close buddy of mine who is like my constant cautionary tale.  I see what his life is like trying to balance being a divorced dad.  And you know, that there are different reasons for divorce and that's not important.  The point that I want to make is that there's a whole different level of complication.  Financially, the man got decimated and that's really hard to come back from.  And it's preventable.  How?Instead of not cheating, does it invest in your loved ones?  Spend time with your family.  Remember that's where one of the happiness and joy.  Protect your family. And it is one of the best ways to also protect money.  So, make sure you put your heart in the right place.  Make sure that this doesn't become the killer to everything else you built.  And for that reason alone, it should probably be kind of a top of the heap when it comes to priority.  I don't really don't have fun making money anyway when my relationship isn't where I wanted to be. Friends, that's my advice today on the 5 ways to protect your money and 5things that you can do.  Now, if you're sitting there saying, "Kris, I totally want to protect my assets.  But I'd like to protect a bigger asset than what I have.  How do I do that?" You do that by clicking the link below.  You get with me on my team.  Access my book for free and start learning how to make loads of money.  Now, this is this is the thing that you got to hear real quick, okay? Listen up.  When you do a deal. . .  And for me when I do a deal, I plan on making 50 grand or a hundred grand.  So, how many deals do you need to do to make a million dollars ora half million?  You, watching this video.  For where we're at, by the end of the year, there's something you can do to increase your net worth serious 6figures.  There are things you can do to build more cash flow on your life.  And it doesn't take very many deals.  Like one deal makes a really big difference.  Click the link, get with me in my team.  Start making a pile of money so that this stuff can even hold more meaning for you.  Thanks so much for watching.  Make sure that you subscribe and ring that bell.  And I'll let you know about tomorrow's video.