Ep 490: Crafting Wins With Budgetdog

Transcript

hello welcome to the H with us podcast

I'm your host Danny Martinez today we

have special guest returning Brennan

from budget dog if you have not seen the

other episode please go check it out we

cover personal finance starting a

business from scratch a ton of cool

other stuff we really go deep it's a

great

conversation but today we have Brennan

coming back we cover today is deal

breaktown we cover cool interesting

stories uh Brennan actually has a ton of

testimonials from his community and I

told him I think it'll probably be good

opportunity to sh share these because I

want to hear them because we did not

mention it at all on the other episode

but I want to hear them so um I think

it's really cool when you have a

community aspect to your business so go

ahead Brandon what you got yeah so I

have I mean we could go a lot of

different directions here I I see one at

the very very top of my Academy I'm I'm

in my Academy right now and uh we we get

these Community wins like pretty much

every day like non-stop at least like

two or three a day uh the one that we I

just saw come through 16 hours ago was a

$30,000 net worth increase in four

months so to put that in perspective if

you're starting at Z and you're trying

to build millionaire net worth that's

about 11 years so 30 every four months

obviously there's a compounding effect

obviously things change but if you

really just map that out it's 11e span

and so we see this stuff every day like

I said and this is nothing new to me I

mean it's exciting every time I see it

doesn't get old but uh you know Sarah

was able to obviously do this in a

four-month span so you can imag

what she could do over 10 15 20 30 years

and we see this stuff so often that it

almost becomes like second nature and

it's like expected uh and I think that's

a testament to what we have here and

what we're doing in budo Academy but did

did it say exactly what she did to do

that yeah so everybody's situation is

gonna be different right the main piece

with her is she came in and she came in

very nervous she came in um like a lot

of people do you know they've never

figured out their finances before uh

they they have things all over the place

it's a it's a chaotic mess and uh

they're they're really trying to piece

this together organize and systemize

this stuff and then actually see the

progress they're building so she kind of

came in just all over the place is the

best way to put it and she didn't have

that system and so what we do the very

first thing we do um before we even get

to the system or to the money side of

things is we talk to that behavioral

psychologist that the finance therapist

we don't divulge that information

because it is personal obviously as far

as like what the transformation they go

through as as a student but it is very

powerful and if I go search Heather

who's my financial therapist she's also

on Twitter Heather burrito um you'll go

to you'll go to my my Academy you'll see

her pop up 256 times so that's just

basically people talking about Heather

dropping Heather's name and that's about

like a quarter let's call it a quarter

of my students that have actually went

out there into the program actually

typed her name in of like the wow

experience and let's just put it this

way it's a wow experience it's a wow

factor uh and that's the very first

piece of the puzzle so that was a very

huge Discovery for Sarah in particular

because she she's never been she's never

figured that out before what are her you

know subcon what's her subconscious mind

leading her to what are all those like

negative cognitions she's telling

herself I'm not smart enough BL you know

whatever those belief systems she holds

why are those popping up how do you have

effective treatment around those things

and how do you fix it ultimately so that

was a very first step she took the

Second Step she took was actually

building out the the monetary system the

automated approach to finance so all of

my students build out like a 30 minute a

month kind of uh systematic approach to

their finances this entails you know all

sorts of different things but having the

balance sheet having a budget having

administation schedules having a very

strict money plan you know where

everything's going before having the

automations turn on all that stuff she

put that together and so once she had

that organized and she understood where

she was coming from a mental perspective

now she sitting there realizing okay

this is not as hard as I thought once

she got through that now she has to

apply the investing components to it and

there's a lot that goes into investing

obviously you know individually in

someone's personal situation but

applying the investing principles to her

situation to allow her net worth to

start to increase is the biggest thing

because you can like build a system per

se but if you don't have like the

compound interest in the Investments and

all the deals flow within that system if

you just hold cash it's not going to

really do a whole lot so like that was

the that was the third piece of or the

second piece third piece whatever you

want to frame it and then uh the fourth

piece in particular was uh building out

her getting the right in insurances so

she was very underinsured with the right

types of insurances but not only that

she also didn't have the right coverages

for what she actually had so she might

have had let's call it term life

insurance but she didn't actually have

the right amount and so this is very

common amongst a lot of people and the

insurance industry is scummy to say the

least there's a lot of uh bad apples in

there telling you the wrong information

and so we go through a number of

insurance obviously and we we got

obviously got our qualif ified for the

right insurances but also the right

coverage in the amount for her

particular situation but then you see

the $30,000 increase in four months and

she didn't start from zero but if you

did like I said that's an 11y year

trajectory to millionaire status uh and

and that's really that's a common story

in our community that it's it's not as

hard as you guys think but I think it's

uh one making the decision that you want

to do better and two following the steps

to get there yeah exactly uh it it all

comes together and uh I think if if you

believe it and you see it it starts to

become real and like I talked about

earlier on or last episode was aligning

your thoughts beliefs and actions

together because if you do that and what

I like to show my students is I like to

show them the Finish Line I can point to

the finish line and show them exactly

where it is when they first come in so

they're not guessing on this game

they're not like it's maybe in 10 years

it's maybe in 20 years obviously there's

some variables too that we have to add

to the picture you know rate of return

things of that nature but in general

like we know when you're going to pay

off debt we know when you're going to

become a millionaire and mapping those

things out for people give people the

confidence and Clarity they need because

once they have that confidence and

Clarity it's it's just a matter of time

and then you start to gamify it because

you see the ending goal and this what

happened with me and my wife is when we

we saw the end goal to become

millionaires we saw the end goal to pay

off our debt and we started to gamify it

we knew exactly what we needed every

single month and if we beat that goal we

would just move faster and this happens

time and time again within the academy

so it's a really cool really cool

story um I had a question and I lost it

um I talk too much sorry no no I and

usually I type it down but I was I was

listening so it's it so it was so good

um man I cannot think of the question um

what man I don't think I'm have to end

it there because I can't the question I

had for you because was it was so good

um where where do people people people

start from zero zero

and how I know it's going to vary but

yeah how how do you help people starting

from zero because I think a lot of

people they're they they're at that

point but how how do people start from

zero just like yeah that's a great

question so dude I started negative so I

didn't I didn't even start zero I

started at negative $8,000 net worth so

I literally had more debt than I had

assets essentially let's call it that

way um and so at 23 that's where like my

wakeup call was and uh I think the

biggest thing and I talk about the a lot

on line and of course the advisers out

there are going to are going to shoot at

this but education is so important so

it's very basic it's very simple but if

I don't know what I'm doing I can't take

the proper steps to do it and if I go to

a financial adviser to kind of fix the

problem per se I'm reliant on the system

I'm reliant on that adviser and that

dude has total control of my situation

so whether or not use a financial

adviser whether or not you use a CPA

trust attorney all these types of

different professionals I'm not debating

that that's a good or bad idea there are

times where it might make sense

supplementally but I don't think in

general for the average person you need

a financial advisor right off the bat

you need to educate yourself to figure

out how to fix your situation because

even if you decide to supplement with it

you actually have control because you

get to guide the conversation if you

don't know what are you going to do

you're going to rely on that person and

whatever they say they're fancy and they

suit and they're educated just going to

say I guess that sounds right I don't

know and so the education component to

this whole entire picture is by far the

first step no matter if you want to use

a professional down the road or not or

supplement as a tax strategist or

something like that so that's what we

focus on and that's what we deliver

right away but further than that where

people are missing is advisors even for

the sake and this is why I argue with

advisors all the time they're going to

charge like an AUM fee usually and some

of them do a flat fee I get that um but

a lot of them do a asset under

management fee so they're taking a

percentage of your assets long term that

compounded effect is is can be millions

of dollars that's not an exaggeration I

can show many examples as to why that

would play out that way I think the big

thing is once you educate yourself and

you start to put yourself on this

pathway you begin to become you become

confident in your ability to do this and

where your your let's call it blind

spots are maybe you supplement with a

oneoff you know advisor uh just for some

particular situation but to manage your

assets it's just not needed especially

with a 30 you know most of the people

I'm working with have a 30 to 40-year

Horizon this isn't that complicated and

you can put yourself in a much better

position when you take the education you

apply the education and that adviser

might meet with you quarterly maybe

semiannually I'm meeting with my

students lifetime 24/7 access they're

with me all the time I have a whole

entire team dedicated to them to serve

them if they have questions there is no

delay there is no wait till next quarter

there is no email in between it's like

hey you can talk to me right this second

we can figure this out this second um

and that's money you know time is money

it's that's important to be able to have

access right away so we deliver that we

deliver you know obviously you know we

bring guest experts on we do all these

things and it wraps it all together and

it also gives them the ability to go

choose for themselves there is no advice

given it's hey we're going to educate

you on all of your options you know

based on your situation this looks like

obviously the the most viable solution

and you ultimately have to make that

decision and so that's kind of what we

do and why I go back and forth with

advisers quite a bit with the AUM model

and stuff and part of it's for uh this

little bit of clickbait uh engagement

there but in general I think the uh the

advising crew has to understand you have

to educate them and some some will make

the argument oh we do educate our

clients no you don't not to the level

that we

do so I I think I think it's man it's

really it's really important the

education part of it because you don't

know if somebody's getting you or not I

think and this is why I love like uh

certain people on Twitter you this

reminds me of a aleski aleski he's

educating people on the dangers of LP

and GP investment because nobody

understands and really really

understands what they're buying if you

don't understand multif family and

you're getting into a multif family

syndication or multif family fund what

are what are the downsides of it and

you're like you're just trusting you're

trusting the GP and LP structure it's

like it's like if I if I need a haircut

am I gonna go ask a

barber the barber is gonna say

yes I I have actually have aie coming on

the show pretty soon so I'm pretty

excited about that but it's s it's such

the education is what you can once

you're educated you can see through the

noise of people that are lying to you

and people that are not and I think

that's the biggest thing is information

empowers you to know better and do

better sometimes it's not even lying

it's actually just like the ability to

decipher the information and what imply

that information to your situation so

like it's not necessarily everyone has

bad intent I I don't like think

financial advisers like have bad intent

I think most of them are trying to serve

people as well but they're not focusing

on what I think matters most and there

is some incentive to them so whether

they're good or bad people sometimes

they might override that that the goal

with with uh you know getting the the

business through the door because they

might have a quot and they do have

quotas often so I've looked at that

world I've seen that world Morgan

Stanley almost has hired me I declined

that position for a reason uh because I

saw there was a quot and you know what

the first the first year you're with

Morgan Stanley I think they told me

there was about 70% burn rate that means

that 70% of people that come into that

door typically don't last because it's

so high of a quota and the smart little

Minds behind that are running the

portfolios are doing all the work in the

background I know this world very well

and that's why they hate me because I I

bring I bring light to it

there you go there you go uh working

find you online this has been another

great episode um we got budget do.com

and uh like I said this has been this

has been really good yeah uh budget

dog.com and uh you can find me on all

social medias under budget doog like I

said uh Facebook Twitter Instagram

YouTube Tik Tok uh and I think that's

all I'm having my podcast will be coming

out shortly but not yet and uh budget

dogor for Twitter and Tik Tok there you

for everybody here go like share

subscribe we'll see you on the next

episode thanks for tuning in thanks for

coming in brenon uh we appreciate you

coming coming on we'll see you next time

bye guys hey if you have any deals you'd

like to submit to The Hive mine and our

team go to Hive bc. it's actually The

Hive Buyers Club submit your deals and

we can hopefully dispill your deal for

you have a great

Ep 490: Crafting Wins With Budgetdog

Daniel Esteban Martinez

Brennan Schlagbaum