You Can Use Debt Without Letting It Use You

Credit card debt feels normal… until you run the numbers.

In this episode, we break down the “money math” that determines whether you build wealth or stay stuck paying interest. From 22% APR and compounding debt to balance transfers, HELOCs, and paying off high-interest debt first, this is a practical conversation about how money actually works.

We also touch on assets vs liabilities, investing, and how understanding your numbers changes everything.

If you’ve ever felt lost when it comes to money, this one will hit.

Subscribe, share, and let me know your biggest takeaway.

Transcript

Why Money Math Matters

SPEAKER_01 0:00

I'm Anthony Eman, odor of Redefined Fitness. And before you look at this and turn it off, because I'm going to say the word math, you need to pay attention. This is everything you never learned in school that I would say from a personal standpoint is the most important math, and at least if you get an understanding of this, can really make you succeed in the future, and things I wish I knew at a young age. So without further ado, let's talk some money math. First and foremost, and this is where I want to start. I have my trust a little board up there. Our total credit card debt in the US is$1.1 trillion. I'm gonna repeat that. The current US credit card debt is$1.1 trillion, meaning the average credit card balance per person is$7,000. So most people are carrying a balance of$7,000 on credit cards going forward. That's a lot. People look at it and I see this time and time again. Oh, it's okay, I'll just pay the minimum. Oh, I'll just pay this. And I think starting with credit cards because they're so misunderstood, is the best place to go. So before you look at this and say, I never want a credit card ever again, credit cards when used right, one of the most important things you can use and leverage in your time. Credit cards used wrong, one of the most destructive things you could do in your life. The average percent increase of a credit card is 22%. APR, also used all over the dock. You see APR, it just means annual percent rate. Meaning, every three to four years that you carry that debt, your debt doubles. So take$10,000, four years from now that's$20,000. Four years from that, that's$40,000. And that's gonna keep going and going and going, which is why it feels so hard to get ahead. And why no matter how much more time you work or how much more time you put effort into overtime, you're always gonna fall behind. Because truth be told, the average increase an employee makes is two to three percent annually. So you're losing out of about 20% when you do 22 minus the 2%. Every single year, you're gonna fall further and further behind. Now, why is that? Well, credit cards are designed just like everything, they're a business, and they need to make money. They call specifically for people who pay their credit cards off in full every single month, deadheads, because they're totally useless to them and cost them a lot of money. You ever look at, for example, rewards? Rewards, the way they're structured, is that the credit card wants to offer as much as possible to incentivize people to come onto them so then they can have a group of people that carries a balance. Because those group of people that carry that balance will pay for those people that pay their credit card off in full and utilize that. Now, somebody who is a deadhead and pays their credit card over month on month on month on month can actually end up saving three to four times to someone that doesn't use credit cards at all. A good example of this would be I have an Amex Gold business card. I get four times back on points for Facebook ad spend, which I'm going to spend anyway for my business. So if I'm spending$100,000 a year, I'm getting four times that point to getting$40,000,$400,000 a year annually given back as points. Now I utilize those points and pay for first-class tickets or fake hotels. I get these huge upgrades that normally would cost me tens of thousands of dollars, but I'm utilizing the credit card company to pay for it for me. I'm one of a billion though, and I want you guys now to shift over to be the one in a billion like me. And we would learn that carrying credit card balance is actually how you're gonna ultimately fall behind. Now I get it. You're in a situation right now in your life, Anthony. I carry$10,000. I don't make$10,000 like a month. I can't pay that off. I've been there. And like I said in the very beginning, credit cards, if used right, can be one of the most important utilization tools you have. Why is that? Well, the credit card industry a long time ago that that's people that try to game the system, that try to be smarter than the best, and they just hope that those that try to game the system end up failing. Well, I gamed the system for years. Coming from somebody who used 15 credit cards to open up my first gym, 15, you heard that right, maxed every single one out and paid those off at the end of the first year. I utilize debt in a positive way. I has I said to myself, you know, I can't get a bank loan for most of the construction and stuff I'm doing, but I can take a card that has$10,000, max it out. Now I get$10,000 with 0% for a year. So I'm end up bringing all that cash forward. And as long as I pay it off by the end of that year, I paid no interest on it. I'm just getting taking$10,000 from the future and bringing it to now to utilize it for now. I did that over 15 times,$150,000. Now it got given to me at 0%. If I went to the bank and took out a traditional loan, that would have cost me 7-8% easily. And I would have been forced to pay that off of a set back gradually into the month on month on month. When I did it initially, I knew I had a backload. So what that means is the first six months I put almost nothing into it. But then as my business ramps and grows, I have six months to start doubling payoffs to eventually get that paid off of the year. Paid off every single credit card. And as everyone knows the story, COVID hit. COVID hits, gym gets shut, wife loses her job. In 2021, we are broke. And now we have a mortgage, and we need to pay for food and day-to-day life stuff. And things started getting hard again. So what did I do? I opened up credit cards, personal, 0% interest. Now, we weren't making a lot of money for years, but I used that money to pay for what I needed. I ended up stacking over about$50,000 worth of credit card debt within the six month time frame that we needed, because I had to use every dime to pay for our mortgage. So I had this debt and it kept carrying, and I was like, well, what can I do? Idea dawned on me. Open more credit cards. So after the I went for 18 months first because I usually get 18.24 months, 0%. Moment before that happened, credit cards companies fight for you because you now you carry debt. So now you're constantly getting in the mail. Do our credit card, do our credit card, do ours. Okay, here's another one, 0% for 18 months. Took my loan, the$50,000 I own this credit card, moved it to another one. They charge you 3.5%, just ended up paying that and eating it. But I'm only 3.5% on that$50,000, and now I can carry that debt for another 18 months. I did it again and again. Notice what I didn't do. I did not carry a balance and let that 22% roll over because it's going to double every year and I'm going to dig myself into a big old hole. Instead, I kept pushing it, pushing it, pushing it until eventually, four and a half years later, I paid off every single card that I owed back then. Now I can I closed all those cards with 0% for a year because they offer you no incentive or rewards. And now opened up credit cards that offer high rewards and high status things that I could use for my business and my personal life, and now pay them off every single month in full so I don't accrue that debt. That's hack number one. So what did we learn? In a shit ton of debt, transfer it. Don't let it ride. Move it somewhere else. Another easier example for people that maybe don't have the credit score to roll it over. If you own a home, it's even easier. Open up a HELOC loan or a home equity line of credit. That interest ranges about six to eight percent, depending on the HELOC. Yet again, pay 22%, pay six percent. You do the math. You end up saying saving four times more just by shifting it over to that six percent of the HELOC loan and using it as opposed to paying the credit card debt. So as you see, 22% APR debt doubles roughly three to four years, and 50% of people carry a balance month to month. Carrying a balance. Why why are these why is Visa MasterCard so big? 50% of people are paying 22% APR every single year, and that's free money all these companies are getting because of all the debt that we're in through to it.

SPEAKER_00 9:00

Now not all debt is bad. But my parents told me I should never be in debt. Why that's free money. Anthony debt's not free money. No debt debt's free money.

The 0% Interest Debt Playbook

SPEAKER_01 9:21

Something called a capital gains tax. Let's talk about capital gains tax for a second here. Yes, short-term and long-term capital gains tax, only differential. Making money in under a year, making money in over a year. So something carries for under a year, it pays short-term. So it carries over that, it pays long term. I think it's 35% for short and 22 for long. I could be wrong on the numbers because I know they constantly change.

SPEAKER_00 9:49

Or I could go to a bank and say, hey, Mr.

Lower APR Options Like HELOC

SPEAKER_01 9:53

Bank, I make this amount of money. Let's say I call it 100K. I have saved up. I could pull it out and pay 22% capital gains tax on that. Or you like making money, I like making money. Why don't you pay me$100,000? Because I have the asset for it over here and rent me a loan for 6%. So I can either A pay capital gains tax at 22%, or B have a bank rent me a loan, which is tax-free, and then pay 6% off of that. What I just do. Save money. How about what we like to call, and Robert Kawasaki really pushed us through, assets versus liabilities. What's a liability? A liability is something you buy that has no inherent value after you buy it. For example, I buy a shirt. I'm not reselling that shirt, right? That is a liability. The 50 bucks I spent on this shirt are gone. An asset is something that makes me money. Homes are the easiest thing to explain. So if I go and get a home for, call it$100,000, and that home I get a loan at 6%. I'm not using my own money, I'm using the bank's money to finance that home. And now I'm able to charge rent in order to make 9% back. What did I just do? I just netted 3%. Now I'm making 3% on that home month over month over month. Someone else is paying my mortgage, plus I'm getting a little, but after once that mortgage is paid off, now I'm making the whole 9% as opposed to just making that 3%. On top of that, homes had the luxury of increasing in value over long spans. Not short spans like six months, long spans as in 15, 20, 30 years. They'll always increase value because land is such a finite resource. Same thing with gold. Gold is very finite, right? Do something like that where I push through. A lot of people will use um life insurance. You can write a loan against life insurance. You can either pull it out and get taxed, or write a loan against it and pay a lot less. What the rich do, and why people always say, you know, it's unfair the rich don't pay taxes. Well, stop creating these legal loopholes, is my first point. Or you everyone just learns this and everyone does this. Take this as an example. I am Elon Musk and I own Tesla. Tesla has stocks. I pay myself in stocks, right? Stocks are an asset. They appreciate over time as they go through. Now I can go to the bank and say, Mr. Bank, I have stocks. I have$100 million worth of stocks. I want to go buy myself a new yacht. I need$50 million. Can you write me a loan for$50 million at 6%? So I could take that cash and use it for what I need. Yet again, I could have pulled it out of the stock market and paid 22% and then paid the corporate tax of it that way. Or I can have a bank rent me a loan and now I don't have to pay back the interest of that bank, which is so much less. On top of that, as time goes on, theoretically, right, as I'm working, as my company is growing, as Tesla's growing, the stocks I have left that become more and more and more valuable. So I can do it again, and then I can do it again, and then I can do it again. And I carry this all the way up where I no longer have to worry about it and pretty much not pay any taxes whatsoever when it comes to capital gains tax or corporate tax through that one direction. So that's how the rich stay rich. And people don't want you knowing this because they don't want you to make money and get ahead. Society is not to teach you, they want to teach you to complain. I'm gonna teach you how to leverage this yourself. So what did we learn? Carrying credit card debt, you're gonna end up paying double for every dollar you have in there every four years. Most people carry$7,000. So when you carry that, double that in four years. Now it's$14,000 in four years, double that again in eight years,$28,000. I'll just act against you. Leverage lower interest APR for everything just to structurally get ahead. So either do the credit card hack where you're moving it to 0% credit cards over time, or if you're paying 22% on something, try to get that down to 6%. And then how do I ultimately avoid paying capital gains tax or anything else? You can leverage assets you have and put money into assets so you could pull that money out tax-free. These are some conceptual thoughts I think people get lost in, but I think we need to take it a step further.

SPEAKER_00 14:32

Luxuries, right? Things we spend money on.

SPEAKER_01 14:36

There's something called opportunity cost. Opportunity cost is you're paying for losing an opportunity or paying for gaining an opportunity. So I could have done X with my money, I did Y. A really simplistic example of this. If I took$100, right? A hundred dollar bill, and I went and bought myself, let's use shoes. Shoes about a hundred bucks. I bought a new pair of shoes. What did I really spend?

SPEAKER_00 15:07

Did I spend a hundred dollars or did I spend thirteen hundred dollars? Where did you get thirteen hundred dollars from?

SPEAKER_01 15:18

In the stock market, and on average it goes up nine percent. So if you took a hundred dollars today and put it into the stock market and it gained nine percent over 30 years, thirteen hundred dollars. So when I look at my pair of shoes, those don't cost me a hundred dollars. Those cost me thirteen hundred dollars. Take it a little higher, say a thousand dollars. I deserve this really nice thing, it's a thousand dollars. Does that cost a thousand dollars?

SPEAKER_00 15:50

No, it costs thirteen thousand dollars. Think about that. That's insane.

SPEAKER_01 15:59

$10,000,$130,000 you just lost there, gone. Like you could have had later in life and you lost the opportunity. Of course, you're not gonna live impoverished and poor and eat nothing. I get it, you have to live life, right? But do you need 65 pairs of shirts? Do you need the next best Nikes or the next best sweatsuits? Is it gonna really impact your life? No. What will impact your life having money for later? Maybe to pay off the credit card debt, right? Let's say I'm I'm stuck in a real world situation. I have$100. I can go buy a new pair of shoes, I can put the$100 towards the credit card, or you can put it in the stock market. What's the correct answer?

SPEAKER_00 16:43

No, not the stock market. You're right. What were the three choices? Stock market stock market, or just go buy a new pair of shoes. Both are wrong. Why? Stock market gets you what? Nine percent. Credit card loses you twenty-two.

Borrowing Against Assets To Save Taxes

SPEAKER_01 17:20

You lose in that scenario. So let's take a 401k for example. If you're in credit card debt right now and you're putting money into a 401k, stop. This is not legal advice. Please don't get me in trouble. I'm not an attorney. I should say that. But I would stop, and it's not legal advice again. I would consider the options where, you know, 22% credit card debt, 9% return. I'm gonna lose. I have a recipe for disaster. If you have carrying any credit card debt at 22%, that is your first priority. Pay that off. You shouldn't be buying anything until that is zero. Nothing else matters. Get that to zero. Once that's zero, then you can start leveraging putting money into a 401k and building that up, or whatever the case may be. You have to look at percentages. You don't need to know the math. And this is where a lot of people screw up. I don't want to figure out what 9% of$165,000 is. You're right. Just know that negative 22 is worse than positive nine, and you're good, right? That's all you need to know when you're looking at this. Or take another example, right? So let's take homes. A home that you're buying as an asset is 6%. That's great. You could build up liability off that. A stock market's 9%. Maybe the stock market's better. It's a net 3%. Or if whatever you're looking at, I could put I can uh a loan is oh home is a good one. I'm gonna stick with this for example. People I use pep even mine. Oh man, this got me going. I hate people that pay their homes off in 15 years. I'm gonna double the money I'm putting into my home and pay it over 15 years. Horrible. Stop! This is not legal advice, right? But why? What is the interest rate on a home that your primary home you're living in? Average right now is 6%. Maybe 7%. Right? What did I just set the stock market return yields on here? 9%. So I could pay that 6% off quicker, or I could take the difference I would have put towards my home, put it into the stock market, now netting 3%. So who's smarter? The guy who's trying to pay his interest off quicker, or the guy that's saying, you know, I can make more putting it here and put it there. Right. Even if you look at it to an interesting stat, and this is what they're gonna throw at you, which is why I wrote it on the board. Half a million dollar home, so$500,000, which by the way, if you're living Long Island, it gets you nothing. Other parts of the world, this is a beautiful home. For us here, it's a piece of cardboard. But pay 6% on a 30-year mortgage, you're paying$1.08 million for that home. Not half a million,$1.08 million. And they're gonna say, see, why would I want to spend$1.80 million on my primary residence? I'll say, you know what, John? When you're looking at that home, the extra money you put in put in the stock market, make 3% over the 3% carried over, probably would have made more than that. On top of that, your home is gonna appreciate in value. So that half a million dollar home you're buying today is probably by the time we sell it, it's gonna be$900,000. So you might only lose$100,000 off of it. Whereas could have made way more than$100,000 if you took the$3,000 extra you were gonna put into your home into the stock market. Because what do we say? That$3,000 appreciated out is gonna be worth$39,000 per$3,000 you spend. But now you get every month put an extra three in. So every year you're gonna end up putting three times 12 is$36,000 extra into the stock market and do that for 30 years. Holy shit! You're gonna be a multimillionaire. Wild. And then when you pull the money out, you ain't gonna pull it out. You're gonna go to the bank and have the bank write you a loan. And now you're gonna pay 6% instead of 22% of capital gains. It's all about money math. Money math, money math, money math. Don't get stressed about it. Don't get hung up about calculating specific numbers and exactly what is something, exactly what something is not. Just look at the interest rate. I'm gonna use a funny example. Cars, right? Cars, liability. Step one What you drive costs you money. I could hear the argument for buying a clinker that costs you$3,000 because you have to go to a job that's gonna pay you triple the. Pay. I understand maybe that's a liability for I mean an asset for you. But the new car off a lot, you lose 20% of the geco. Now, what's the funny example side of this? I love when people go to car dealerships and the car salesmen are way they sell is horrible. But how much money do you want to spend a month? That's what they ask you. Like, why does it matter how much money I want to spend a month? It doesn't make a freaking difference. Well, if I can have you spend this amount of money a month, does that make it worth it? No, I don't give a shit. I care about two things. How much money is the overall car and what the interest rate is. I don't care about the monthly number. And they look at me and they go, Well, why not? I was like, because if it's$30,000 and I pay it over seven years, or pay it over 12 years, or pay whatever, it's still$30,000. It doesn't make a difference. I could divide the math in my head. I'm not stupid. So if it's a$30,000 car, I don't care about the monthly rate I'm paying because it's just going to be dependent and you're going to skew the numbers based upon the interest and how much money I'm putting down when I could just tell you the value is the value at the end of the day.$30,000 is$30,000, I'm not paying more than that. What I do care about is what can you offer me on the interest? That I do care about. Let's talk, right? So take a car, you're paying it all for let's say 15 years, right? So$30,000, you pay, what's the average car rate? Like 6% over 15 years. You're into paying$49,000 to$52,000 on that car now. So some person, if you want to look at it and say, okay, I saved money, John. I bought a$30,000 of your car. Unlike you who bought a$50,000 of your car, I saved$20,000 more on the better person. No, you both in the exact same boat. Because little do you know, John got 0% interest on his car. So over the time he paid off, you both just paid the same amount of rate. But the argument could be that John got the nicer car. He's got way more goodies. He ain't worried about that ship breaking more. So he's way smarter than you are. Just understanding. So when I said I bought my truck and I was looking around, zero percent. I was like, I just want zero percent. Just give me some. I'm off. Why? Why zero percent?

Opportunity Cost And Debt Payoff Priority

SPEAKER_00 24:28

Because every year that car becomes cheaper. What? Yeah. How do things become cheaper if we have a zero percent loan?

SPEAKER_01 24:39

Why does it become cheaper?

SPEAKER_02 24:41

You're not paying more than what you the value goes down. You're paying it off.

SPEAKER_01 24:45

But why does zero percent become cheaper?

SPEAKER_00 24:49

Why should you never pay off a loan that's below three percent? So a little friend called inflation.

SPEAKER_01 25:05

Average inflation is three percent. Any guy, anyone tells you to pay off a loan and under three percent I want to throw a marker at them and say, no, I'm gonna pay this thing off in as low and as infrequently as I possibly can. Why? Money worth today is worth it's worth more than money worth later. If I have a hundred dollars and I put it under my pillow in a year that's now only$98.97, that money's gonna depreciate and disappear. If I have$100 and I put it into a savings account, I'm smart. No, you're not, you're an idiot. Um, because the average savings account is paying under 3%. So every year, that money's gonna become less and less and less and less and less. If you have a savings account, I would rethink about your structure on life and start looking for things that pay more than inflation. That way you start making money. I do agree in having a checking account and having cash to keep you mentally sound, right? You want to be able to have three months where if your home explodes, I have three months worth of cash, like local cash I could have onto and not stress and die. Everything outside of that needs to make you more than 3%. Are you losing out? So those that got lucky during COVID, like myself, who has a 3% interest on a home, I will never pay that off. Oh my god, I'm gonna wait till the very last day for that thing to get paid off because inflation, I'm netting zero on it, right? I'm netting zero. My car at zero percent, I'm gaining back three percent year and year and year. So over time, that's gonna catch up to me. They asked me to like, you want to put a deposit down this? I said, Are you out of your mind? No, I want to put no money down. Because every$100 I put towards it, I lose 3% of a year and year because it's a 0% loan. So why would I want to put money down? Let me cat this shit out. Let's make this loan as high as possible. You know what I can do with the$100 now? Instead of giving it to you, I can put it into the stock market and make$1,300 in the future.

SPEAKER_02 27:01

So you don't put money down.

SPEAKER_01 27:03

No, if it's under 3%. That's the key.

SPEAKER_02 27:08

So the key is the interest rate. The interest rate, the interest rate, and interest rate. That is the key.

unknown 27:14

Okay.

Inflation Rule For Loans And Cash

SPEAKER_01 27:14

You want to make money, you want to sell yourself up the future, no interest rates, understand interest rates, understand three biggest components. Number one, how much it costs you to carry that debt, APR on credit cards. Number two, how much percent increase it can give you back. Things like the stock market, right? So that or owning a home that you rent out, that's an your assets that give you percent back, and understanding the cost of inflation. Those three things together will slowly help you get ahead and out of a hole. Now, I have a special segment for my business owners, because I think we under-leverage this the most, at least those in the beginning. The 3% inflation rule doesn't apply to you. And paying off things above 3% might not rely on, might be dependent on you. Why? If you know your numbers, and I mean you have to know your numbers, if you don't know your numbers, turn this off right now. And yet again, this is not legal advice, don't get me in trouble. But if you know your numbers, if I put a dollar into my business, what's my percent yield back on that? So instead of me buying, let's say$100 for a pair of shoes, if I put$100 into meta-eds, right? How many people is it gonna bring that back to make that over the lifetime value of that person to increase in my pocket? So if you know what your CAC is, the cost of acquiring your customer, and you know what your LTV is, your lifetime value of your average customer, you can figure out what your ROI is. So if I spend$500 to go get a customer and that customer yields me back$3,000, I just netted$2,500 over the course of a year. Now take that to the extreme of paying off loans. Where am I gonna see a 3x or 4x return? Not really anywhere, right? It's really only business. So it doesn't make sense for me to put money at this very present time because I don't have liquid assets. I do believe in diversifying when you can get there. I'm not at that stage yet, but when I'm big enough, I will be. I don't see the point of putting money in a 401k that can yield me 9% year on year when I could put that same amount of money back into my business and 4x it. Right? So think about where you're putting your money at what given time. And obviously it's all a risk reward. The riskier you are, you may be rewarded, but you may also get screwed, right? So I'm at the opportunity now where if this goes south, I'm screwed, right? Because I didn't diversify, right? But as I get out of this hole, as I slowly build up out of this hole, now I can start doing it for safe havens, as opposed to trying to get the best bang on my buck. I can start diversifying and putting myself out there. So if one channel goes south, I still have the other three going. And that's eventually the game and the money game is to have multiple channels, giving you multiple income. Some are safer, some are more riskier, so that if one does go south, you're still making money and still increasing, as opposed to what the average American does, carries credit card debt and loses every four years double the amount of money that they gained and digs themselves into this impossible hole and then have them file a bankruptcy and all these other issues, and really can't get ahead because they were told that the American dream is to work a job and take out a mortgage on a home you can't afford and end up paying double that back and never win and don't carry debt. How many people tell you that? Oh my god, you want debt, you just want good debt, and you want to leverage a good debt. Yeah, you have any questions about anything?

SPEAKER_02 31:08

This was so informative. I'm looking to get a car. So they tell you that sales, but you never really look into it.

SPEAKER_01 31:24

If the loans is under three percent.

SPEAKER_02 31:28

Yes, if it's less than three percent, you can get the stock market nine percent back with it. The key thing is look at it how much you're making back with percentage. That is the key. I gotta stick with that. How much am I getting back? Oh, that's a house of 22% paying off your debt. I know I mean that I knew you gotta pay off your debt, but you can't.

SPEAKER_01 31:43

Just don't be the stupid person that doesn't put any money down in this car, right? And then takes that money and goes buys a pair of shoes.

SPEAKER_02 31:50

No, that's idiotic.

SPEAKER_01 31:52

Make sure you go and do the next step of investing that.

Business ROI Using CAC And LTV

SPEAKER_02 31:55

Of course, yeah, that's stupid, yeah. But yeah, it's it's money's all a game, like it's it's all a game. It's a doubles game, it's looking at percentage and numbers, and and one thing I love that you you're really good at that you just gotta be. You know, you don't gotta be a mathematical genius, but you gotta know your numbers. So Anthony, can you just lastly talk a little bit on how you how just numbers you were non-existent in the business, and then and then learning your numbers, I mean just diving in fully, what kind of transition that made for you?

SPEAKER_01 32:25

Right. So the biggest lesson I learned was I understood personal numbers like this from the get-go. I understood 0% interest, I understood how to leverage that from day one. But I got into this mindset of panic, because it's like I gotta pay these cards off before we go out of business, right? Because it's 22%. I'm never gonna make those ground up. So I went into sales mode and I just said I can outsell any debt I put myself into. But I had a vehicle. Like, that's the difference between being a business owner to being an employee. It's not every hour is a dollar. I can leverage my time better to create$4 out of that hour more than anyone else can because I have my own business. I use it as a different vehicle. So it's a lot easier for me to say, okay, I can double my output and bring in X amount of money by selling this much more to pay off my debt. And I didn't track any of the numbers full disclosure for years. Years and years and years, until actually until like six, seven months ago, I really got into my the weeds of the numbers. But it always had me panicking. Like I don't know where my next dollar is coming from. I I remember when I started meta-eds, I was doing$100 a day. And uh it took me three and a half years to start putting$100 in in meta eds. I'll try like a dollar here, dollar there, but this shit doesn't work. And I would always listen to people, right? It's like, why are you putting$100 into that? You don't know if it works, you don't know if you're like it doesn't give you any value. That's a lot of money. I mean,$100 is that's$365,000 a year you're putting into it, right? And sorry,$36,000 a year. Bad math, but$36,000 a year, still a lot. And I was like, you're right, I don't it just feels like it feels like so much money,$100. And then I learned my LTV to cack.

SPEAKER_00 34:17

I'm like, wait, if I put$500 in, I get$3,000. Why don't we do more? I can just keep putting more in? This works.

SPEAKER_01 34:31

Oh, uh. If I didn't know the math, I would be pouring sweat on the floor, having a panic attack, saying$600 a day on ads is a lot, like everyone else. It just sounds like a lot. And then when you look in the industry, you're like, there's companies, no joke, like the big companies spend on average$10,000 a day. A day. And they say if you're not spending$150,000 a month, you're a low spender.$150,000 a month.

SPEAKER_00 35:22

Are you out of your mind? A month? Talk millions over the course of a year.

SPEAKER_01 35:28

No, that's the game. It's knowing you're at a percent increase on investment.

SPEAKER_02 35:36

So that means the numbers are only intimidating to those that don't understand. That's why it's intimidating. That's why it's intimidating to you and initially. But once you get the number, you're gonna wait, I'm RI. So I'm gonna get it.

Spending Cuts And Final Challenge

SPEAKER_01 35:49

Your home. I'm$500,000 in debt. I want to pay that off as soon as possible. I'm in debt. Can you believe this? Who said what's your interest rate? Why would you pay that off? Because they just don't understand because people are so afraid of debt and so afraid of money. And you just get the polar opposite streams. Those that don't have any credit cards or any debt, they're wrong. Those that have credit card debt and burn themselves off and double it for reviews, they're wrong. You gotta play the game, ebbs and flows to everything. You gotta understand, just understand numbers. That's it. Not crazy math, just knowing nine is greater than six. That's all you need to know. And all of a sudden, things just become so much easier. So don't be afraid to look, don't be afraid to understand. Your Netflix subscription doesn't cost you$10 a month. Remember that$130 over 30 years, and that's$130 times$10 a month, so it's$120 a year. Everything adds up. Cut it. Look, cut, cut, cut. You don't need that extra shirt. You don't need the best of the best. This, you don't need the best of this that. And when you're looking at your friend who drives a$3,000 beater car, wears the same pairs of clothes every single day, and all of a sudden one day you wake up and they're multi-billionaires, and you say to yourself, What did I do differently? They didn't bought nothing because they knew in 30 years that money would be worth 10 times more than it did before. Hope that helps, guys. Don't forget, like, subscribe, share this with someone that needs to hear this, especially that person that says I hate math. Share that this one. Because if you don't understand this, you truly will never get ahead. And don't forget, I'm not an attorney, uh, a lawyer. That's not legal advice. Thanks, guys. Until next time.