When things are going well that is when you stack

The title of this post is the exact opposite of what most people will do. Most folks, when they are grinding and struggling they can’t wait until things are going well so they can live life at the level they want to.  They want to ball, they want to have it all.  Now that we have entered a somewhat booming and confident economy people are going to let loose, now that we have entered a somewhat booming economy that is exactly what you shouldn’t do.

I am reminded of the story of Joseph and Pharaoh.  It is one of my favorite because I don’t know any financial blogger that talks about this principle but it is super obvious. Joseph had a dream of seven years of plenty followed by seven years of lack.  What Joseph proposed was that during the years of plenty is when they should work super hard but put resources aside so they can survive the years of lack.  As I am sure you all know, they did just that and were able to weather the seven years of lack that followed.

Right now we just went through seven years of lack and none of us had reserves. All of us downgraded our lives.  This is because we lived irresponsibly during the fat years.  Well we get a do over now.  Its time to do better.

The last eight years

During the last eight years of the “recovery” we saw record low levels of black wealth.  Most of our wealth, like every other culture is tied up in our homes.  When the housing market tanked so did black wealth.

When wealth tanked people had nothing but time to dwell on social justice issues.  Money is the cure for all things, even oppression and racism.  When you have more money than other people you tend to think less of their opinion.  

What we saw over the last few years, because of the lack of wealth, jobs and opportunity following the recession was really just people who did not have the money to soften the blow of the issues in America.  We read reports about there not ever being a great America for black folks. We read posts and stories about how we never had anything in America.  All are false.

There are countless stories of black success in America.  Don’t believe me? Read the book Wealth Choice by Dennis Kimbro.  The entire book is filled with black success stories that your American History class never told you about.  We have not always been struggling, we have not always been broke and without.

The issue with the culture isn’t that we don’t have money. Its not that we lack income or resources.  Our issue is that we don’t hold on to what we have.  We spend way to freely. This is why they call us liquid money in other communities.

So this is what I propose. I know that the emotional thing to do when you get a great job, when you get a windfall, when you get some residual income is to blow it fast and hope that you get it right back. It is the ghetto anthem to live that way. Ghetto anthems are why the ghetto is the ghetto. What we must begin to do is make money for the purpose of stashing not for the purpose of spending.

This is something I preach to my sister all the time.  I tell here that sometimes you need income that is solely to invest. You need a job that is solely for saving. Most of us only work to the extent of our bills and then wonder why we have nothing and live paycheck to paycheck.  One key is to work more than you need to so you have more money than you need to.  But the, don’t buy overpriced Gucci and private flights.  That is not what the Jews do and there is a reason why their wealth, ownership and asset holdings are far superior to any other group in America.

Where did I come up with this mentality

For the last three years I have seen a man make millions upon millions and live as though he makes nothing.  Same clothes, same car, same watch, no fancy trips.  But the same drive to make massive income.  Why? Because the power is in your money not in your stuff.

This experience alone has shifted my thinking.  How can a man who makes so much money live as though he makes none? How can people who make nothing close to what he makes live as though they have everything? I’ll sum it up with his words not mine “my ego is in my financial statement”.  Net-worth is measured by what is on your financial statement.  As my people make more and more money all I see is them spending more and more.  The only thing that is bound to happen is that when the economy reverses we will be right back at the bottom.

When is the last time you had a situation like a law suit or a property issue and couldn’t pursuit it because you didn’t have a ton of cash on the sidelines? I see it all the time in Detroit. People have roofs with a bright blue tarp on them, but they are at the casino and they have nice Buicks parked right in front.  This is backwards thinking.  When is the last time you had a car issue and had to put it on a credit card? When is the last time you got presented an opportunity and couldn’t go after it because you didn’t have a liquid 10k?  I’m am betting that it happens to you all the time.

I don’t blame you though. Society has taught you to think so low of yourself that you only feel worthy when you have a label on your body or when you are in the right car.  I don’t blame you.  But accountability isn’t about blame, accountability is about who is going to change things.  Who is going to make you feel as though you are enough and that you don’t need their approval?  Once you get to that point you don’t have to blow money on brands for self confidence. Once you get to that point you can elevate your finances not theirs. 

This is a problem, this is preventing your wealth, this is holding you back.  If you don’t have a free $10k to pursuit deals, but you got them jays though, you are foregoing wealth opportunities that someone with the 10k can take from you.  When that 10k turns into 100k you will still be sitting with nothing and they will be 100k wealthier.  Then you can insert your wealth gap argument.

So the key to wealth is not in what you make, it is in what  you hold on to.  You are going to have people looking at you weird telling you to upgrade your shoes but wealth and high net worth are weird.  Broke is normal.  If you are doing what everyone else is doing welcome to broke normal land.

I am trying to push you to supreme being and what I have to say is not for everyone it is for the committed. It is for those that want more. It is for those willing to live like no one else so they can later live like no ones else.  I promise you.  I have been exposed to money at all levels in all different realms and the spend spend is not the way, it is only the way to keep you borrowing.

If you are interested in investing with our club on either the stock or real estate side we would be happy to welcome you into the partnership.  Email membership@capitaltodd.com today to join.

Be great, invest well,

Todd Millionaire


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