Focus on Money: Are There Any Principles Behind Your Planning?

Are you following Principles that help to keep you on track? In Today's episode of #TheAmberStittShow, we discuss a number of ways to be successful but not always in the traditional way we have been taught.

We are following the basics written in Kyle Christensen's Book called "Principles Based Planning" and you can find his book here: https://www.amazon.com/Principles-Bas...

Kyle and his team make it easy to see your money in a way that can work for you and he covers multiple principles.

Kyle kicks us off with a shout-out to the author of Rich Dad, Poor Dad: Robert Kiyosaki and reminds us that The key to Sucess is Financial Education!

Let's have some consciousness behind our planning, not just use traditional budgeting.

You can learn more about Kyle and his team here:
For anyone: https://uniqueadvantage.biz/
For Advisors: https://fiveth.co/

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Transcript

Kyle, your business partner, and then I was lucky enough to get the principle-based financial planning or what do I say principles based planning. I read the book front to back and marked it up and Carl, I know I showed you my marks and I said I'm sorry that I couldn't help it. So that just means I really enjoyed the information. So I thought I would love to share that the information with my audience. So here we are. Let's take a step back though, as I talked about how we met. Let's go a little bit into the background. Kyle, where did you come up with? Really, how did you get into the business and how did you and Dave a team up and start working together?

Unknown 2:21
Yeah, so it's a little bit of a long story short that I started in 1999. And I was still in college at the time so I was this you know, young green ear, you know, person that one wanted to learn. I really just wanted to learn about money. And honestly, I always tell people that in my life, I've had more examples of what not to do than what to do. And so that kind of drove me to want to be successful financially. And probably the most influential book that I read was Robert Kiyosaki Rich Dad, Poor Dad. And basically he said, Look, the key to successful financial education, right. The difference between those two are the order to get them confused. That kind of led me down this path. Long story short. I want to the financial industry doesn't teach principles, right. The financial industry teaches products and they teach. They teach people to make the wrong financial decision. And there's a reason for that and maybe we'll talk about that at some point. The what I call the rules of financial institutions. But, you know, over time, that's become more and more clear to me. And that's why I wrote the book and created a whole system that's all based on principles that that actually create success.

Unknown 3:49
Yeah, I think it makes perfect sense, David How did you kind of land in this world because I don't know that you always were in the planning space.

Unknown 3:59
No, no, I mean, I've kind of gone all over the place. I've been mean, twice. As like I was kind of on the other side of things were global equities, alternative investments. Real estate investment company, so but my father was in the insurance industry his whole career. So I was exposed to kind of that side then as well. But I met Kyle just through actually insurance things in the past, but we've been friends for a number of years and and he was he'd helped me out with some different things in the past and one day said, Hey, I hate bringing people into this, but I think you can do this, you know, I'd like to work with you. So if you want to I'll I'll teach you everything that I can and I was like, alright, well, let's keep talking. So and the more that I heard about it, the more it resonated with, with what I felt with what makes sense with I mean, it's cohesive with with the overall view on life so it was

Unknown 5:00
like a breath of fresh air for me because well and what's nice about David being on the other side is that we can see other aspects and then really kind of formulate a decision or kind of the like what you your opinion on things because you can see how this can affect other people and I know we're kind of high leveling this right now because people don't know what we're talking about. But David, you mentioned a different path. And we have different pathways, hence the title of my podcast pathways to peak performance. There are so many ways to be involved in personal finance, and you don't have to be this and I've talked with you guys about this, this accounting brain, you know, analytical numbers smart to get the basic concepts down. And like we talked about, we don't learn about this when we're young and I know that us collectively and our colleagues are really trying to teach our own children, some of these foundational elements with our kids being young. It's very important to us. Because we know it wasn't there. For us outside of Kyle, you mentioned 1999 I think we're probably about the same age. So you know, we had these classes that might have talked about checkbooks and maybe but there was really nothing else besides, if you wanted to be a business course or like an internship in high school. There really wasn't anything so luckily, there's a lot more resources but that's where we'll kind of talk more about the book and your your process for your clients. But even another connection I feel like I had with you Kyle is that you mentioned a bunch of different titles of books in your book that you've written. And we were texting about a lot of these different books but I think you at least five that you mentioned there's a few more on your website. is that okay? That page to your your website that shows all of those, I mean, how many books have you really kind of put in your arsenal of you know, part of the kind of like that thought leadership for anyone can really tap into it. I mean, at least five books I think and maybe some videos,

Unknown 6:54
right? Yeah. I mean, we feel like it's great to have support and backing from people who are much more well known than I am right. And there's they're speaking to that specific principle or that topic or whatever. And, in supporting that I mean, it's it's nice to be able to say, hey, go read Rich Dad, Poor Dad, because he talks about investing in yourself. and that's a principle that you teach us from outside sources that people generally deal with. When they're saying, hey, look, this is the right thing to do. I love that a lot. I mean, I read a book. I think I've read

Unknown 7:39
18 books. To the left. So though I have David already. I already ordered a bunch of books. When I was hanging out with David for like one day, so at least I have an excuse for my my book habit, but not everyone loves to read. So there's obviously other things you can do through videos and audio books and so on. So kind of want to see where you want to begin but that kind of wealth creation kind of stands out to me and the Velocity of Money stands out to me. I'll let you begin with kind of what you want to share with you know, high level what do you want people to know today if they can take have a couple takeaways today? Let's leave the audience with some things that they can apply now. And then of course, if they need additional help, you know, we have the teams available. To them, but let's have you kick it off with reformatting or kind of think about the mindset of money. So what do you think people

Unknown 8:34
battle over their money? And I don't think that they know that they're in that battle. You know, I've seen this bumper sticker that says money talks in mind always. Right. And there's a lot of truth to that right that people one of the hardest challenges in life right is holding on to your money. Why is that? It's because there is a force out there. That is making a constant effort to take away from control you're going to create Well, right. So I think I think primarily what what I would want to tell your audience or tell anybody that I talked to is Look, you've got to make your effort to be in control of your money or your life.

Unknown 9:26
Right? And know that there are forces take that away and they made a it. Right. movie with Tom Cruise, do you like that movie?

Unknown 9:45
Maybe back in the day is still still pretty cool, right?

Unknown 9:49
Yeah, but my favorite scene is Tom Cruise and Cameron Diaz are talking about like, Okay, some people are gonna come after you and they're gonna stay there from the government and they're gonna say that they're here to help you and they're going to take you to a safe place and all this kind of stuff. And he's like, that just means they're gonna kill you. And she's like, what? You know, and I just think I'm not trying to bad mouth the entire financial services industry, but the reality is, they're their objective is to get control the use of your money and they're not to make you financially. That's not their standard. You're joining in

Unknown 10:37
kind of putting it on auto This is what we're talking about. developing performance. as I'm thinking about how do people do things with resilience because things are going to happen and people are not properly proactively putting things in motion taking action today for some of these forces are these things that are happening so we're talking about just you could get sick? or maternity leave or said that you're going to do to me that my earning potential disability, but then we're putting all of these dollars into these accounts that we really have no control over and I think that's what you're talking about. Correct? It's it's having that awareness and not just letting it be so but putting some skin in the game some sweat equity into participating with where your dollars are going. I mean, I don't want to speak for you, but I feel like that is the message that I'm feeling from you guys.

Unknown 11:41
Kyle and I were talking the other day about some of the underlying forces and because it's it's not the financial services industry, that's the enemy necessarily. It's it's our natural instincts of wanting something that's easy. Atomic habits. We talked about that book, I think, right? It's just kind of all the rage right now, but it's a great book. But he talks about the behavior of wanting to fit in with the crowd. And the thing is, we see that we are yearning for So between those three factors. Mutual institutions very easily speak to the easy route and to the popular route because those are it's hard to break away from our natural tendencies to want to feed into those. But that's what we just need to be aware of.

Unknown 12:36
When you're mentioning people have created to surprise me, he mentioned about him he's different than I thought because he just assume he just you know, making he's obviously making money in the stock market, but he doesn't think like you would think he does, given if you don't take the time to invest in learning a little bit more. That's what I love about this. This whole mindset is that we really take back control within our own selves. And so I teach this a bit. Back to the pathways. program starts with knowing who you are, how do you receive information, don't be upset who you are. And then you dial it in with your partner, spouse or whoever you understand how things might take and work for you. But from there, build some of these goals around who you are but you have to you have to do some of the work right now

Unknown 13:32
work as a principal right? And it always has been I mean, I've got a quote behind me on the wall. You probably can't see it, but with a picture of Booker T Washington next to it because it's a quote from him from Up From Slavery. Which is a fantastic book. And he he says that anything worthwhile requires anything that is long lasting and valuable to require. And so you think about you know, what really hurts people financial is their natural tendency. Right, my natural tendency is not to go lift weights and go exercise and you know, I just want to eat whatever I want to eat. Well, that's gonna lead me predictably to an outcome that I don't really want. So, so the same thing applies. If you aren't actively resisting natural tendencies when it comes to your money. You're gonna fail financially predicting the outcome.

Unknown 14:37
and a lot of that plays into what's the easy route that I can go with my money. To make more and that both of you just said there to Warren Buffett has a great phrase where he refers to people who, who help with money, he called him to help. Effective they're trying to help but they're trying to help us do the easy row that doesn't require work. And there's a cost to that. That most of us just don't realize.

Unknown 15:06
Well, back to the analogy if you eat better, you feel better right? You work out. You feel better and more flexible, if you understand where your money's going. And that's basically when I talk about these proactive steps for your health and well with things in the throat.

Unknown 15:29
stress level can be maintained and I think data conferences but we had a health scare with my husband was labs that came back with it or not good and it was there mishandled or somebody else's labs came through so he got the phone call, and what people didn't know is we had spreadsheets and other folders and apps that help protect our information. So like if something happens, we don't have to blink and go where are things people go You guys are kind of crazy that that you were so autopilot and surgical about getting the news but we didn't have we didn't need to over stress ourselves with Where is everything and what would we do if this was a real problem. The emergency kind of that strategy was already pre built and we had an exercise, but that's also after having that a couple years ago. I want people to have that same feeling. It feels really good to know what's going on and that just kind of closing your thought process of just deal with it later. And given what we've seen in our business and just personally as we've been either employees, spouses have children and in business ownership to so we've kind of seen it all but we can go back and trust these other people like we've been talking about people your sourcing in the book. They have the has the historical elements are there for us to kind of pay attention to. Yeah,

Unknown 16:58
I think that's a great point. And it really made me think of the protection area of people's finances, right? Where they're just kind of hoping that things don't happen to them. Because they don't really know Right? They don't have that. Like I think it's awesome that you had all those things, the resources and you were surgical about it and you could not panic when the news came, right? How many people are in that situation with their protection of their finances there? Are they just hoping things don't happen to them? I think unfortunately, the lack of financial literacy. the way the financial service industry sells products right. are unprepared. They have they don't, they're not really prepared. In fact, one of the questions I ask every client is prepared. possibly go wrong. Financially, not well. So then we talked about the three reasons why that is. And it's really

Unknown 18:06
a couple of weeks ago, he mentioned that he's been doing 11 years worth of research on the neuroscience, the brain science behind the fear factor of really thinking about the what ifs so I think you have a PERT there's a perfect point there. I think marketing companies know that people are naturally inclined in their brain to shy away from the scary things. My husband is one of those he's more easygoing, kind of fly by the seat of his pants. He's a fun guy. He is not responsible. I mean, we joke about it, but I mean, he'd rather kind of just gotta want to talk about everything will be okay. There's so many out there. And it's okay, but what are we going to do with that? So, do you want to talk about your your three steps at a high level today?

Unknown 18:53
The three reasons why people are not prepared financially or from the protection. The first reason is educated and I'm not trying to be but what percentage of the population buys auto insurance? Just as an easy example. Right, right. But how much education do they get when they buy it? Now? One of the questions one of the questions we asked our clients is how did you decide? And I didn't even I didn't even know I could do one what the agency gave me or what I could afford at the time, you know, and and as they say those words they want education number one number two, they don't think it's going to happen to him. Right. I think generally, that's good. You wake up thinking. Yeah, I'm not going to have cancer today. You know, that's good. We should be optimistic about that. But do those things still happen to people? Yeah. Well, since that happened, I didn't expect it. People get a lab result that they didn't expect. you know. So you know, feeling like I'm invincible. Way to prepare, right? That's not why you have action. It's not why you have auto insurance, right? Or homeowners or disability or the third reason is because they think it's going to cost too much. Okay, so let me ask you this. If you don't know what your options are, do you really know what it's gonna cost? Perception, it's the perception of the cost. We see this all the time. You know, people will have like firstly on the model that we use in the protection area, if you have $100,000 And I say to you, hey, Amber, you should get a million dollar umbrella policy. What do you think your premiums gonna look like? It

Unknown 21:06
sounds like a huge jump. You're talking about a lot of money a million dollars.

Unknown 21:10
Sure. Yeah, like 10 times what you already have. And and so people are pleasantly surprised when we say well, actually, it's probably going to be somewhere around 100 years, 200 years. Go to your PNC agent and get a quote for it and let's find out and you know, and then we tell them some other little tricks of the trade so that they can actually, in some cases save money. You know, they can have 10 times the liability coverage they have for no cost. Did they have any clue? You know it and here's the other thing. I think the industry especially on the insurance side is so price focus, so premium focused, that they're shooting themselves in the foot because you and I and David, we would all pay more for a better meal at a better restaurant. Right? We will offer more for a better experience. And people will pay more if they understand the why. And they feel like Hey, I chose this. I know what I I know what I'm paying for. And, you know, in most cases, they'll they'll pay more than that or protection,

Unknown 22:17
right? No, I agree with that. The thing that's funny about the auto and home is I have I've had people not know that their jewelry is not covered their bedding sets or bands and so they have the endorsement. Now you have the basics. And so what's interesting about the it's not all agents but like you said, Ask some of these questions, because I would think the person that is selling the product would say we have these 10 things, what do you need, but I don't think those questions are, they're rarely asked and so you're really can be under insured a lot of times, so I always tell people, especially around the wedding season Hey, by the way, just make sure you get that jewelry, because I've had even someone lost a piece of jewelry and was pretty bummed out when they did not have the coverage. So but ask the questions. It's your life. You know, we have to participate in learning more and protecting and well in a

Unknown 23:17
lot of it. A lot of it through a process actually goes back to even understanding why to so why even do we have auto insurance? I talked with a great guy just a couple of days ago and he was so funny because we start talking about auto insurance. I was like why do we have he's like, Oh, I think it's a scam and you know, it's there just protecting your car and that's it and went on and on about it. And it was yeah, in his mind. It was totally a scam if all it's doing is protecting your car. And then his wife chimed in. Well, what if we hurt someone? Right, and love his wife she's awesome too. But it was. What's the more expensive part