1 00:00:00,040 --> 00:00:01,760 So let's talk about setting goals. 2 00:00:02,880 --> 00:00:05,640 Mr. Schuff gave me some tips on setting goals that changed my 3 00:00:05,640 --> 00:00:09,320 life forever and I want to share those with you. 4 00:00:10,440 --> 00:00:12,480 We need to take a look into the future. 5 00:00:12,760 --> 00:00:17,840 There are four things to consider in terms of attitude. 1 6 00:00:17,840 --> 00:00:21,840 is how you feed the past. Best advice I can give you on 7 00:00:21,840 --> 00:00:23,440 that is treat the past as a school. 8 00:00:23,440 --> 00:00:25,840 Let it teach you the mistakes you've made, the things that 9 00:00:25,840 --> 00:00:27,520 went wrong, the things that didn't work. 10 00:00:28,000 --> 00:00:31,240 Don't use the past as a burden to carry and don't use the past 11 00:00:31,240 --> 00:00:33,160 as a club to beat yourself to death. 12 00:00:33,680 --> 00:00:36,160 Past losses, past failures, past mistakes. 13 00:00:36,640 --> 00:00:38,960 But let the past be a school. Tough school. 14 00:00:38,960 --> 00:00:40,920 Maybe we've all been through some tough stuff. 15 00:00:41,600 --> 00:00:44,640 So if you feel good about the past, draw from it for 16 00:00:44,640 --> 00:00:48,840 experience and let it teach you. Then next is how you feel about 17 00:00:48,840 --> 00:00:52,280 the future. We've got to have the future 18 00:00:52,280 --> 00:00:54,920 well designed. The future is called the 19 00:00:54,920 --> 00:00:59,280 Promise, and here's what we teach in our leadership series. 20 00:01:00,320 --> 00:01:05,200 The promise of the future can be an awesome force for your own 21 00:01:05,200 --> 00:01:07,520 future. The Promise of the future 22 00:01:07,680 --> 00:01:09,960 Designing the future There's two ways to face the future. 23 00:01:09,960 --> 00:01:14,480 One is with apprehension and the other is with anticipation. 24 00:01:15,160 --> 00:01:18,200 I promise you in my travels around the world, most people 25 00:01:18,200 --> 00:01:21,240 face the future with apprehension and here's why they 26 00:01:21,240 --> 00:01:24,760 don't have it well designed. They've sort of left that up to 27 00:01:24,760 --> 00:01:28,160 someone else to fix. But here's the best way to face 28 00:01:28,160 --> 00:01:31,680 the future with anticipation. And you can you can face the 29 00:01:31,680 --> 00:01:36,360 future with anticipation if the future is clear, if the future 30 00:01:36,360 --> 00:01:40,760 is well designed. And I would like to have you 31 00:01:40,840 --> 00:01:47,160 consider some thoughts with me that help me to really change my 32 00:01:47,160 --> 00:01:49,720 future by giving it some thought and some consideration. 33 00:01:50,760 --> 00:01:53,360 And here it is in setting goals. It's very simple. 34 00:01:53,360 --> 00:01:55,680 Number one, decide what you want. 35 00:01:56,400 --> 00:01:59,400 You just take a little time. You sit down and say, what do I 36 00:01:59,400 --> 00:02:01,760 want? What kind of skills do I want? 37 00:02:01,760 --> 00:02:04,040 What kind of income do I want for the future? 38 00:02:04,880 --> 00:02:07,920 What would I like? Where would I like to go? 39 00:02:08,039 --> 00:02:13,320 Places I'd like to visit, habits I'd like to acquire, skills I'd 40 00:02:13,320 --> 00:02:16,000 like to have. You just take a little time to 41 00:02:16,000 --> 00:02:20,120 think about what you want. Economics, friendships, people 42 00:02:20,120 --> 00:02:22,440 you'd like to meet, places you'd like to go. 43 00:02:22,720 --> 00:02:25,800 You just take some time and then I suggest when you've thought 44 00:02:25,800 --> 00:02:28,560 about what you want for the future, make a list. 45 00:02:29,280 --> 00:02:32,480 Just jot it all down. It's a really a very simple 46 00:02:32,480 --> 00:02:36,680 process. And then here's #3 keep all the 47 00:02:36,680 --> 00:02:39,760 old lists. I'm telling you, this served me 48 00:02:39,760 --> 00:02:42,880 so well, keeping my old list of goals. 49 00:02:43,400 --> 00:02:47,600 I look back now, 1020 years ago at goals I set, lists I made, 50 00:02:47,600 --> 00:02:50,800 and I smile now because here's what I thought was so important, 51 00:02:51,240 --> 00:02:54,400 you know, 20 years ago now, some of those things aren't even on 52 00:02:54,400 --> 00:02:56,720 my list. I've got a new list. 53 00:02:56,720 --> 00:02:59,640 I've grown, I've changed, I've matured. 54 00:03:00,280 --> 00:03:03,000 But I give you that advice. Decide what you want #2 write it 55 00:03:03,000 --> 00:03:08,200 down #3 keep the old lists. And then here's #4 when you get 56 00:03:08,200 --> 00:03:10,680 something that's on one of these lists, check it off. 57 00:03:10,800 --> 00:03:13,120 Part of the fun of having a list is checking it off. 58 00:03:14,000 --> 00:03:16,560 And then if you can, add some drama to checking it off. 59 00:03:16,560 --> 00:03:20,840 See, that's what really helps. I set a goal to go to Spain 60 00:03:20,840 --> 00:03:24,560 many, many years ago. And when I finally made my first 61 00:03:24,560 --> 00:03:27,000 trip to Spain, I had that journal with me that had that 62 00:03:27,000 --> 00:03:30,120 list in it. And while I had my journal on my 63 00:03:30,120 --> 00:03:35,120 lap waiting for the wheels to touchdown in Madrid, I waited 64 00:03:35,120 --> 00:03:37,760 until the wheels touched the runway and I checked it off. 65 00:03:38,480 --> 00:03:42,080 Just adding a little drama. So part of the fun of having a 66 00:03:42,080 --> 00:03:45,600 list is checking it off. Now here's what's important 67 00:03:45,600 --> 00:03:48,240 about the lists and designing your future. 68 00:03:49,440 --> 00:03:55,200 If the future gets clear, the price gets easier because you 69 00:03:55,200 --> 00:03:58,960 got to remember, for every promise, there's a price to pay. 70 00:04:00,600 --> 00:04:02,160 Everybody's got to pay the price. 71 00:04:02,360 --> 00:04:05,400 Everybody's got to do the deal. Everybody's got to do the 72 00:04:05,400 --> 00:04:07,720 disciplines. Everybody has to pay. 73 00:04:08,320 --> 00:04:12,520 But here's what I've discovered. If the promise is clear and 74 00:04:12,520 --> 00:04:15,320 powerful, the price is easy to pay. 75 00:04:16,000 --> 00:04:18,680 The price is some classes. The price is a few books. 76 00:04:18,680 --> 00:04:22,240 The price is a few disciplines. The price is finding something 77 00:04:22,240 --> 00:04:24,640 that'll make your life better, make you grow, make you change, 78 00:04:24,640 --> 00:04:27,680 make you develop. So the first part of the key is 79 00:04:27,680 --> 00:04:30,640 to design the promise. Then what is the price to pay? 80 00:04:30,640 --> 00:04:33,360 I'm telling you, the price will be easy. 81 00:04:34,080 --> 00:04:37,480 Anybody in my audience can pay. No matter where you are, where 82 00:04:37,480 --> 00:04:39,920 you come from. Color doesn't matter, religion 83 00:04:39,920 --> 00:04:42,320 doesn't matter, where you grew up doesn't matter, circumstances 84 00:04:42,320 --> 00:04:44,680 don't matter. I'm telling you, if you'll make 85 00:04:44,680 --> 00:04:47,560 the promise of the future clear for yourself. 86 00:04:47,560 --> 00:04:49,920 The things you want, the places you want to go, the things you 87 00:04:49,920 --> 00:04:52,800 want to have, the person you want to become, the skills you 88 00:04:52,800 --> 00:04:56,000 want, the homes you want, the future you want, the friends you 89 00:04:56,000 --> 00:04:59,720 want, all of the values of life that you could possibly want. 90 00:05:00,280 --> 00:05:04,040 If you'll make that clear, make those lists and be serious about 91 00:05:04,040 --> 00:05:05,960 it. I promise you, it's an easy 92 00:05:05,960 --> 00:05:08,720 price to pay. Anybody can pay it. 93 00:05:09,480 --> 00:05:11,920 And the best advice I can give you is if I can do it, you can 94 00:05:11,920 --> 00:05:13,920 do it. Farm boy from Idaho, raised in 95 00:05:13,920 --> 00:05:16,360 obscurity. I changed my life, turned it 96 00:05:16,360 --> 00:05:20,480 upside down, turned it all around, found economics, found 97 00:05:20,480 --> 00:05:23,400 future, found promise. And if I can do it, you can do 98 00:05:23,400 --> 00:05:26,920 it. So start setting your goals and 99 00:05:26,920 --> 00:05:31,320 see if you can't get a better excitement going for the things 100 00:05:31,320 --> 00:05:32,960 you want to accomplish for the future. 101 00:05:33,880 --> 00:05:37,440 Now, here's my third subject, and that's called financial 102 00:05:37,440 --> 00:05:40,760 independence. Oh by the way, before I get to 103 00:05:40,760 --> 00:05:45,640 financial independence, let me cover one more .1 of the major 104 00:05:45,640 --> 00:05:50,480 reasons for setting goals is for what they make of you in 105 00:05:50,480 --> 00:05:54,440 achieving them. My teacher advised me when I 106 00:05:54,440 --> 00:05:57,160 first got started at age 25. He said, Jim, why don't you set 107 00:05:57,160 --> 00:06:01,960 a goal to become a millionaire? He said it's got a nice ring to 108 00:06:01,960 --> 00:06:06,360 it, you know enough zeros to impress your accountant. 109 00:06:07,320 --> 00:06:09,680 And he said I'm here to help you. 110 00:06:10,160 --> 00:06:12,560 You're only 25 years old, you've been to one year of college, 111 00:06:12,560 --> 00:06:14,920 you've got a beautiful family, every reason to do it. 112 00:06:15,320 --> 00:06:17,360 Why don't you set a goal to become a millionaire? 113 00:06:17,680 --> 00:06:21,360 And he said here's why. And I thought he doesn't need to 114 00:06:21,360 --> 00:06:23,560 teach me. Why wouldn't it be nice to have 115 00:06:23,560 --> 00:06:26,640 $1,000,000? He said no, then you'll miss it. 116 00:06:26,760 --> 00:06:31,080 He said here's why. For what it will make of you to 117 00:06:31,080 --> 00:06:34,360 achieve it. I'm telling you, that statement 118 00:06:34,360 --> 00:06:37,760 changed my life. Set the kind of goals that will 119 00:06:37,760 --> 00:06:40,760 make something of you to achieve them, he said. 120 00:06:40,760 --> 00:06:43,000 Now, once you become a millionaire, what's important is 121 00:06:43,000 --> 00:06:45,840 not the money. I thought that's kind of strange 122 00:06:45,840 --> 00:06:47,760 teaching. He said, honest, it isn't 123 00:06:47,760 --> 00:06:48,360 important. He said. 124 00:06:48,360 --> 00:06:49,640 You could just give the money away. 125 00:06:50,480 --> 00:06:52,280 Now, I did better than that. I lost it all. 126 00:06:53,120 --> 00:06:54,600 By the time I was 31, I was a millionaire. 127 00:06:54,600 --> 00:06:56,160 By the time I was 33, I was broke. 128 00:06:56,160 --> 00:06:58,880 And I'll tell you a little bit about that story later. 129 00:06:59,880 --> 00:07:01,600 But when I lost all my money, guess what? 130 00:07:01,600 --> 00:07:03,320 I found out Mr. Schoof was right. 131 00:07:03,400 --> 00:07:05,640 What was valuable was not the money. 132 00:07:05,640 --> 00:07:09,400 What was valuable was what I became to earn the money, the 133 00:07:09,400 --> 00:07:13,640 skills I had, the knowledge I had about the marketplace, the 134 00:07:13,640 --> 00:07:16,920 values that I had going for me. They were more valuable than the 135 00:07:16,920 --> 00:07:18,800 money. And here's an important 136 00:07:18,800 --> 00:07:21,280 statement to remember. It's not what you get that makes 137 00:07:21,280 --> 00:07:23,680 you valuable, it's what you become. 138 00:07:24,480 --> 00:07:27,360 So part of the key here is to set the kind of goals that will 139 00:07:27,360 --> 00:07:30,360 make something of you. Don't set them too low so that 140 00:07:30,360 --> 00:07:32,640 you don't have to grow and you don't have to read and you don't 141 00:07:32,640 --> 00:07:34,720 have to try and you don't have to stretch. 142 00:07:34,720 --> 00:07:38,880 Don't set them too low and then don't sell out. 143 00:07:39,560 --> 00:07:42,200 Don't go for something that's going to cost you your virtue or 144 00:07:42,200 --> 00:07:46,160 cost you your values or sell out your principles. 145 00:07:46,800 --> 00:07:48,840 There's a good middle Rd. here to follow. 146 00:07:48,840 --> 00:07:52,080 Goals that will inspire. Goals that'll help you grow, 147 00:07:52,080 --> 00:07:54,800 change, develop and become better than you are. 148 00:07:55,600 --> 00:07:59,080 OK, now let's talk about financial independence, How to 149 00:07:59,080 --> 00:08:03,120 become rich by 4035 if you're extra bright, much sooner. 150 00:08:03,120 --> 00:08:06,480 If you find an opportunity like I did, let me show you how I did 151 00:08:06,480 --> 00:08:09,360 it. Financial independence. 152 00:08:10,080 --> 00:08:12,320 I like the phrase financial independence. 153 00:08:12,560 --> 00:08:15,560 Some people are a little bit concerned about using the word 154 00:08:15,560 --> 00:08:20,240 becoming rich or becoming wealthy, and I can understand 155 00:08:20,240 --> 00:08:22,040 that. I struggled a little bit with 156 00:08:22,040 --> 00:08:24,400 this. Is it OK to go for becoming 157 00:08:24,400 --> 00:08:27,680 rich, go for becoming wealthy? And maybe that's a bit too 158 00:08:27,680 --> 00:08:29,720 strong the word or strong the term. 159 00:08:29,720 --> 00:08:32,640 So here's what I've come up with that I think is comfortable for 160 00:08:32,640 --> 00:08:35,280 me and that is how to become financially independent. 161 00:08:36,320 --> 00:08:39,640 I think it's every person's heritage here, especially in 162 00:08:39,640 --> 00:08:42,840 America, to become financially independent. 163 00:08:42,960 --> 00:08:45,520 Now, let me give you my definition of financial 164 00:08:45,520 --> 00:08:47,920 independence. Financial independence is the 165 00:08:47,920 --> 00:08:52,840 ability to live from the income of your own personal resources. 166 00:08:54,200 --> 00:08:56,240 Financial independence. Now it depends on how you want 167 00:08:56,240 --> 00:08:59,320 to live. If you need two, $3000 a month. 168 00:08:59,320 --> 00:09:02,560 If you need 45000A month. If you need 10,000 a month, Some 169 00:09:02,560 --> 00:09:06,200 people may need, you know, 100,000 a month, but whatever 170 00:09:06,200 --> 00:09:11,200 you would need to live and you could earn that living from the 171 00:09:11,200 --> 00:09:13,320 income of your own personal resources. 172 00:09:13,600 --> 00:09:16,760 That's what I call financial freedom, financial independence. 173 00:09:17,760 --> 00:09:19,200 And let me show you how to acquire it. 174 00:09:20,520 --> 00:09:28,120 If you start at age 15, between ages 15 and 35 is 20 years. 175 00:09:29,000 --> 00:09:31,480 And in my personal opinion, based on my own studies and my 176 00:09:31,480 --> 00:09:35,400 own experience, 20 years and my opinion is enough time to become 177 00:09:35,400 --> 00:09:40,280 financially independent. If you're not, you don't live in 178 00:09:40,280 --> 00:09:43,400 the wrong country. Probably what's happened is you 179 00:09:43,400 --> 00:09:47,200 have the wrong plan and it's easy to be a nice person with 180 00:09:47,200 --> 00:09:49,840 the wrong plan. I found that when I was 25 years 181 00:09:49,840 --> 00:09:52,320 old. I was broke at age 25 and I was 182 00:09:52,320 --> 00:09:54,760 a nice guy. You would have liked me, but I'm 183 00:09:54,760 --> 00:09:58,240 telling you, my plans up until then, especially my financial 184 00:09:58,240 --> 00:10:01,320 plan, left me broke. I totally changed it the next 185 00:10:01,320 --> 00:10:03,560 six years and I became financially independent. 186 00:10:03,880 --> 00:10:05,240 So I know what I'm talking about. 187 00:10:05,640 --> 00:10:10,840 It is possible in a reasonable amount of time, 15 to 35, 188 00:10:11,320 --> 00:10:14,440 whatever, 20 years time, enough time, you can do it in a much 189 00:10:14,440 --> 00:10:18,360 shorter period of time like I did if you want to, but this is 190 00:10:18,360 --> 00:10:21,120 a reasonable enough time. But here's number one. 191 00:10:21,120 --> 00:10:23,400 First of all, you got to have the right philosophy. 192 00:10:25,760 --> 00:10:29,960 Philosophy is our ability to gather knowledge and sort 193 00:10:29,960 --> 00:10:32,840 through it and decide what's valuable to develop. 194 00:10:32,840 --> 00:10:36,400 A philosophy about life, a philosophy about our health, a 195 00:10:36,400 --> 00:10:39,760 philosophy about our family relationships, a philosophy 196 00:10:39,760 --> 00:10:41,960 about economics. And if you develop the right 197 00:10:41,960 --> 00:10:49,160 philosophy, that's what helps to set this sail so that in six 198 00:10:49,160 --> 00:10:51,720 years it takes you where you want to go instead of winding up 199 00:10:51,720 --> 00:10:53,960 like I did that first six years of my economics. 200 00:10:53,960 --> 00:10:58,640 Broke, no money, empty bank account, the right philosophy. 201 00:10:58,640 --> 00:11:00,960 Now, let me give you a couple of philosophies to consider. 202 00:11:00,960 --> 00:11:03,440 Here's the first one. It's called the philosophy of 203 00:11:03,440 --> 00:11:10,800 the poor, and here it is. Poor people usually spend their 204 00:11:10,800 --> 00:11:16,400 money and invest what's left. That's the philosophy of the 205 00:11:16,400 --> 00:11:19,040 poor. Now here's the philosophy of the 206 00:11:19,040 --> 00:11:21,920 rich. Rich people invest their money 207 00:11:22,720 --> 00:11:26,480 and spend what's left. And here's the startling answer. 208 00:11:27,040 --> 00:11:29,520 It really doesn't matter what the amount is. 209 00:11:29,840 --> 00:11:31,840 What's most important is not the amount. 210 00:11:31,840 --> 00:11:34,320 What's really important is the philosophy. 211 00:11:35,360 --> 00:11:41,480 So I would ask you to adopt this philosophy of spending after you 212 00:11:41,480 --> 00:11:43,960 have invested. Invest first, then spend. 213 00:11:44,440 --> 00:11:47,200 And I've got a little formula that I'm going to share with you 214 00:11:48,360 --> 00:11:49,880 now. What should a child do with a 215 00:11:49,880 --> 00:11:52,960 dollar? I mean, there's a lot of debate 216 00:11:52,960 --> 00:11:55,360 going on, I'm sure, across the country on what a child should 217 00:11:55,360 --> 00:11:57,040 do with the dollar. Here's one opinion. 218 00:11:57,040 --> 00:11:58,800 It's only a child and it's only a dollar. 219 00:11:58,800 --> 00:12:02,880 What difference does it make? Well, in my opinion, it makes 220 00:12:02,880 --> 00:12:06,400 all the difference in the world. A person's economic future 221 00:12:06,400 --> 00:12:09,480 starts with a child with a dollar. 222 00:12:10,160 --> 00:12:12,880 Somebody says, oh, no, you're only young once, let him spend 223 00:12:12,880 --> 00:12:15,000 it all. Well, when would you hope that 224 00:12:15,000 --> 00:12:18,000 would stop? Somebody says well wait till 225 00:12:18,000 --> 00:12:20,400 he's 50 and broke like me and you know, and then he'll learn. 226 00:12:20,800 --> 00:12:22,800 Well, no, we don't want to wait that long. 227 00:12:23,320 --> 00:12:26,200 If I would have known earlier than age 25, I would have 228 00:12:26,200 --> 00:12:29,800 changed in high school. If I if they would have had 229 00:12:29,800 --> 00:12:33,400 classes called wealth 1, Wealth 2, I'd have taken both classes. 230 00:12:33,520 --> 00:12:38,800 I would not have waited until age 25 S the earlier the better. 231 00:12:38,920 --> 00:12:40,680 So what should a child do with a dollar? 232 00:12:40,680 --> 00:12:42,600 Here's the simple premise to begin with. 233 00:12:42,600 --> 00:12:46,200 Don't spend it all. And if a child wants to spend 234 00:12:46,200 --> 00:12:48,360 the whole dollar, you got to say, hey, don't spend it all, 235 00:12:49,080 --> 00:12:52,600 you know, don't spend it all. They'll say, why not? 236 00:12:52,600 --> 00:12:55,880 It's my dollar, I earned it. You say I know you earned it, 237 00:12:55,880 --> 00:12:58,880 but don't spend it all. They'll still say, why not say 238 00:12:58,880 --> 00:13:01,560 let me show you why not? So you put them in your car, 239 00:13:01,560 --> 00:13:04,880 take them to the other side of town and show them where people 240 00:13:04,880 --> 00:13:06,120 live that spend the whole dollar. 241 00:13:06,960 --> 00:13:09,400 Just drive them around. Kids learn best by visual. 242 00:13:10,080 --> 00:13:12,000 Just drive around and say, would you like to live here? 243 00:13:12,000 --> 00:13:15,600 Kid says no, Would you like to live like these people live? 244 00:13:15,600 --> 00:13:20,240 Kid says no, no, then you can't spend the whole dollar. 245 00:13:21,120 --> 00:13:24,040 So kids will get the message. So, you know, take them to the 246 00:13:24,040 --> 00:13:26,160 other side of town and show them around unless you already live 247 00:13:26,160 --> 00:13:29,120 there and then just show them around anyway. 248 00:13:30,040 --> 00:13:33,240 Don't spend the whole dollar. Now, let me give you my best 249 00:13:33,240 --> 00:13:35,240 view of what to do with the dollar. 250 00:13:36,000 --> 00:13:38,440 And I promise you, if you started at age 15, now, if 251 00:13:38,440 --> 00:13:41,680 you're over 15, right, you've still got plenty of time. 252 00:13:41,680 --> 00:13:43,800 You've still got 20 years. You know, if you're 30, you've 253 00:13:43,800 --> 00:13:45,960 still got 20 years. I mean, you know, you've still 254 00:13:45,960 --> 00:13:49,040 got plenty of time to start. What I'm about to share with 255 00:13:49,040 --> 00:13:55,000 you, what to do with a dollar. Here's my first bit of advice. 256 00:13:55,640 --> 00:14:03,360 Never spend more than $0.70. Never spend more than $0.70. 257 00:14:04,280 --> 00:14:07,160 Now you got to pick some number, and the number you pick is going 258 00:14:07,160 --> 00:14:08,680 to be determined by your philosophy. 259 00:14:10,280 --> 00:14:12,160 It's going to be determined by what you've been taught or your 260 00:14:12,160 --> 00:14:16,040 experience teaching yourself. When I first met my teacher, Mr. 261 00:14:16,040 --> 00:14:19,360 Shoaf, I was at about 110% of each dollar. 262 00:14:19,840 --> 00:14:22,520 You know, I'm down at budget finance Hawking my furniture in 263 00:14:22,520 --> 00:14:27,120 my car one more time. And then I learned a whole 264 00:14:27,120 --> 00:14:29,160 better formula for financial independence. 265 00:14:29,160 --> 00:14:32,280 Number one, don't spend more than $0.70. 266 00:14:33,200 --> 00:14:36,760 Now kids say to me, well OK, what do I do with the other 267 00:14:36,760 --> 00:14:40,080 $0.30? And here's what I teach them. 268 00:14:41,240 --> 00:14:47,840 $0.10 for charity. Charity or church for helping 269 00:14:47,840 --> 00:14:52,360 people that can't help themselves, $0.10 to support 270 00:14:52,440 --> 00:14:56,080 worthy projects. Projects that you feel good 271 00:14:56,080 --> 00:14:57,720 about. $0.10 out of every dollar. 272 00:14:58,960 --> 00:15:02,480 It's called being generous with part of what you've taken out of 273 00:15:02,480 --> 00:15:06,920 society. Now in my opinion, nothing 274 00:15:06,920 --> 00:15:11,040 teaches us character better than generosity. 275 00:15:11,240 --> 00:15:15,000 No class, no teacher, no book teaches generosity, teaches 276 00:15:15,000 --> 00:15:16,560 character better than generosity. 277 00:15:17,120 --> 00:15:19,880 And the best time to start is when the amounts are small. 278 00:15:20,880 --> 00:15:23,960 And I know if kids learn these lessons well, they'll give a 279 00:15:23,960 --> 00:15:26,040 dime out of a dollar, help people that can't help 280 00:15:26,040 --> 00:15:27,840 themselves, support worthy projects. 281 00:15:28,560 --> 00:15:31,320 Or if you belong to a church, they teach tithe peace of. 282 00:15:31,760 --> 00:15:36,520 That's very important now because when the amounts get 283 00:15:36,520 --> 00:15:39,800 larger, sometimes it's a little more difficult, you know, giving 284 00:15:39,800 --> 00:15:42,080 100,000 out of 1,000,000. Someone says, oh, if I had a 285 00:15:42,080 --> 00:15:44,840 million, I'd give 100,000. I'm not sure that's a lot of 286 00:15:44,840 --> 00:15:47,520 money. So the time to start is when the 287 00:15:47,520 --> 00:15:49,840 amounts are small, $0.10 out of the dollar. 288 00:15:50,760 --> 00:15:55,120 OK, next $0.10 I call active capital. 289 00:15:56,520 --> 00:15:59,520 Active capital means do something to make a profit. 290 00:16:01,640 --> 00:16:05,920 Active capital, set aside a portion of your income. 291 00:16:06,880 --> 00:16:09,680 Wages are OK, but I'm telling you, wages will make you a 292 00:16:09,680 --> 00:16:12,000 living, Profits will make you a fortune. 293 00:16:12,680 --> 00:16:16,960 So set aside part of your income as capital called active 294 00:16:16,960 --> 00:16:19,320 capital. Any kind of project you can 295 00:16:19,320 --> 00:16:21,320 possibly think of, you can possibly come up with. 296 00:16:22,280 --> 00:16:24,280 I'm going to write a new book, I think for kids. 297 00:16:24,280 --> 00:16:26,720 I think the title is going to be, of course, kids should pay 298 00:16:26,720 --> 00:16:28,800 taxes. It's kind of an interesting 299 00:16:28,800 --> 00:16:31,400 title. In California kids do pay taxes. 300 00:16:32,200 --> 00:16:35,120 When a child walks into 711, buy something that costs the dollar. 301 00:16:35,120 --> 00:16:39,800 The proprietor says give me 7 more pennies and the child says 302 00:16:39,800 --> 00:16:43,080 hey what's these 7 pennies for? The proprietor says that's the 303 00:16:43,080 --> 00:16:46,120 taxes. Kid says well hey I'm only 8 304 00:16:46,120 --> 00:16:48,400 years old. Proprietor says congratulations, 305 00:16:48,400 --> 00:16:51,200 you're my youngest taxpayer, give me the money. 306 00:16:51,320 --> 00:16:54,520 So in California where I live, kids do pay taxes. 307 00:16:54,520 --> 00:16:57,640 Big question is should they? And my book will answer that 308 00:16:57,640 --> 00:16:59,920 question. Of course kids should pay taxes. 309 00:16:59,920 --> 00:17:02,960 Nothing is for free. If you want to ride your bicycle 310 00:17:02,960 --> 00:17:06,280 on the sidewalk instead of in the mud, you got to pay the 311 00:17:06,280 --> 00:17:09,640 seven pennies. Nothing is free, so we all have 312 00:17:09,640 --> 00:17:15,800 to pay. So $0.10 out of your living, out 313 00:17:15,800 --> 00:17:18,960 of the money you earn, set aside for capital. 314 00:17:19,280 --> 00:17:23,040 Capital to try your best to show a profit. 315 00:17:23,800 --> 00:17:26,000 And in my books, it's going to be all kinds of ways kids can 316 00:17:26,000 --> 00:17:28,160 make money, right? Two bicycles, one to ride and 317 00:17:28,160 --> 00:17:30,240 one to rent. I mean, you know, it doesn't 318 00:17:30,240 --> 00:17:33,920 take long to figure out some enterprise that'll start making 319 00:17:33,920 --> 00:17:36,640 a profit. Then you must jot this down if 320 00:17:36,640 --> 00:17:41,720 you're taking notes. Profits are better than wages. 1 321 00:17:41,720 --> 00:17:46,400 You can't usually start wages until you're about 161516, but 322 00:17:46,400 --> 00:17:50,320 you can make a profit long before you're eligible to start 323 00:17:50,320 --> 00:17:53,200 earning wages. And then there's no limit to 324 00:17:53,200 --> 00:17:54,920 profits. And they can, they can double 325 00:17:54,920 --> 00:17:58,560 and triple and quadruple. You know, there's no limit. 326 00:17:58,560 --> 00:18:01,520 It's incredible how fast profits can grow. 327 00:18:02,240 --> 00:18:03,800 So profits are better than wages. 328 00:18:03,800 --> 00:18:06,360 Wages make you a living, Profits make you a fortune. 329 00:18:07,440 --> 00:18:09,640 Now the 3rd $0.10 is vitally important. 330 00:18:10,400 --> 00:18:15,720 I call it passive capital. Capital, you let somebody else 331 00:18:15,720 --> 00:18:20,520 use a financial institution, stocks and bonds, mutual funds, 332 00:18:20,520 --> 00:18:22,840 whatever, Let someone else use it. 333 00:18:22,840 --> 00:18:26,200 You furnish the money, they use it to make a profit, but they 334 00:18:26,200 --> 00:18:28,040 pay you for the use of it called interest. 335 00:18:29,160 --> 00:18:31,120 And here's one of the things that'll make you financially 336 00:18:31,120 --> 00:18:34,960 independent fairly quickly, and that's called compound interest. 337 00:18:35,600 --> 00:18:38,440 And this is how you get it, Letting someone else use a 338 00:18:38,440 --> 00:18:44,400 portion of your money, your substance, they show the profit, 339 00:18:44,400 --> 00:18:47,760 they pay you interest. And this passive capital, I'm 340 00:18:47,760 --> 00:18:50,960 telling you over a sustained period of time, if you'll 341 00:18:50,960 --> 00:18:55,000 develop this little 10/10/10 and 70, especially starting at age 342 00:18:55,000 --> 00:18:57,880 15, I'm telling you by the time you're 35, you will be 343 00:18:57,880 --> 00:19:00,560 financially independent. You'll have the ability to live 344 00:19:00,560 --> 00:19:03,080 from the income of your own resources. 345 00:19:04,000 --> 00:19:06,040 And then one more point on passive capital. 346 00:19:06,040 --> 00:19:10,240 There's a Bible philosophy, I'm an amateur on the Bible, but 347 00:19:10,240 --> 00:19:14,160 there's a Bible philosophy that teaches the borrower is servant 348 00:19:14,640 --> 00:19:18,080 to the lender. And if you want to be in a 349 00:19:18,080 --> 00:19:22,280 powerful position as you grow older, finally when you become 350 00:19:22,280 --> 00:19:25,320 mature, maybe have your own business, things have worked out 351 00:19:25,320 --> 00:19:28,160 for you for the future, the position you always want to be 352 00:19:28,160 --> 00:19:30,840 in is the power position, and that's called the lender. 353 00:19:31,360 --> 00:19:33,200 The lender is the power position. 354 00:19:33,960 --> 00:19:36,160 So if kids learn early enough and then you ask them what 355 00:19:36,160 --> 00:19:38,760 they'd like to be when they grow up, I'm telling you, once they 356 00:19:38,760 --> 00:19:41,320 understand, they'll say, well, one of the things I want to be 357 00:19:41,640 --> 00:19:45,080 is one of those lenders. That's the power position, not 358 00:19:45,080 --> 00:19:48,000 the spender. No, you'll be pitied the rest of 359 00:19:48,000 --> 00:19:50,040 your life if you just become a spender. 360 00:19:50,440 --> 00:19:52,760 You got to become a lender. And I think this is the one. 361 00:19:53,240 --> 00:19:56,680 Formulas to follow, $0.10 out of every dollar. 362 00:19:56,760 --> 00:19:59,520 Let someone else use it. Be the lender power position, 363 00:19:59,960 --> 00:20:03,040 then try to show a profit. Can't we teach our children how 364 00:20:03,040 --> 00:20:05,960 to take a dollar? Search the neighborhood, find a 365 00:20:05,960 --> 00:20:09,600 broken wagon, pay a dollar for it, bring it home. 366 00:20:10,080 --> 00:20:13,440 You know, clean it up, sand it until it's clean, paint it red 367 00:20:13,440 --> 00:20:15,840 till it shines. Straighten out the wheels till 368 00:20:15,840 --> 00:20:17,800 they're true. Take it back to the 369 00:20:17,800 --> 00:20:19,800 neighborhood. Sell it for $5. 370 00:20:20,680 --> 00:20:24,040 Anybody can do that now. Does the child deserve $4.00 371 00:20:24,040 --> 00:20:25,080 profit? And the answer is yes. 372 00:20:25,080 --> 00:20:29,200 Society now has a mended wagon, and that's what America's all 373 00:20:29,200 --> 00:20:31,720 about. Finding something, touching it, 374 00:20:31,800 --> 00:20:35,360 making it better, making a profit, taking part of your 375 00:20:35,360 --> 00:20:37,440 resources, helping people who can't help themselves. 376 00:20:37,840 --> 00:20:39,760 Let someone else use it to make a profit. 377 00:20:39,760 --> 00:20:42,480 Some projects require more capital than one person has. 378 00:20:43,360 --> 00:20:47,080 Exciting and then let them pay you for the use of it. 379 00:20:48,440 --> 00:20:51,120 Capital in the hands of the kids, capital in the hands of 380 00:20:51,120 --> 00:20:54,680 the people, enterprises that make a profit, enterprises that 381 00:20:54,680 --> 00:20:56,720 grow. It's the hope of our future. 382 00:20:57,440 --> 00:21:00,320 So that little simple formula, I hope will help you. 383 00:21:00,320 --> 00:21:03,400 Now, one more key on financial independence and that is 384 00:21:03,400 --> 00:21:06,240 attitude. Attitude. 385 00:21:07,920 --> 00:21:11,720 Here's number one. I used to say I hate to pay my 386 00:21:11,720 --> 00:21:15,040 bills. My teacher straightened me out 387 00:21:15,040 --> 00:21:16,400 on that. He said, let's see, Mr. Owen, 388 00:21:16,400 --> 00:21:20,360 what you hate to do is pay $100 on an account and reduce your 389 00:21:20,360 --> 00:21:22,200 liabilities and increase your assets. 390 00:21:22,200 --> 00:21:24,400 I said, well, no, not if you look at it that way. 391 00:21:25,960 --> 00:21:28,160 He said, well, it all depends on how you look at it. 392 00:21:29,200 --> 00:21:32,280 So wouldn't you love to pay your bills, reduce your liabilities, 393 00:21:32,280 --> 00:21:34,400 increase your assets? You've got to have that kind of 394 00:21:34,400 --> 00:21:37,240 attitude. I found out the same attitude 395 00:21:37,240 --> 00:21:39,240 about taxes. I used to say I hate to pay my 396 00:21:39,240 --> 00:21:40,480 taxes. And Mr. Scholl said, well, 397 00:21:40,480 --> 00:21:43,600 that's one way to live. But don't you understand, taxes 398 00:21:43,600 --> 00:21:46,800 is how we care and feed the goose that lays the golden eggs. 399 00:21:47,200 --> 00:21:48,720 Wouldn't you want to do your share? 400 00:21:49,280 --> 00:21:51,000 Someone says yes, but the goose eats too much. 401 00:21:51,000 --> 00:21:54,200 Probably true, but hey, we all eat too much. 402 00:21:54,200 --> 00:21:56,960 We all need to go on a diet. Better a fat goose than no 403 00:21:56,960 --> 00:21:59,880 goose. So I finally became a happy 404 00:21:59,880 --> 00:22:02,200 taxpayer. Now I think taxes are too high. 405 00:22:02,200 --> 00:22:05,680 So I'm working to get taxes lowered for our economic future, 406 00:22:05,920 --> 00:22:09,520 but then whatever they turn out to be, I gladly pay and do my 407 00:22:09,520 --> 00:22:13,120 part because that's what makes the whole system run, each of us 408 00:22:13,120 --> 00:22:15,600 doing our part. Now. 409 00:22:15,600 --> 00:22:18,280 I want these three subjects to be valuable for you. 410 00:22:19,360 --> 00:22:21,000 I want them to have meaning for you. 411 00:22:22,160 --> 00:22:24,760 I want you someday to be financially independent. 412 00:22:25,880 --> 00:22:28,720 I want you to have the personal development so that you feel 413 00:22:28,720 --> 00:22:31,840 good about yourself. And now I'd like to leave you 414 00:22:31,840 --> 00:22:34,920 with these four questions called questions to ponder. 415 00:22:35,560 --> 00:22:39,200 These questions were valuable for me and I want to make them 416 00:22:39,200 --> 00:22:41,000 valuable for you. Here's the first one. 417 00:22:41,040 --> 00:22:45,480 Why We all ask why we should work this hard? 418 00:22:45,480 --> 00:22:49,480 Why take that many classes? Why go to school that many 419 00:22:49,480 --> 00:22:51,880 years? You know, why take the notes? 420 00:22:51,880 --> 00:22:54,800 Why read the books? Why work that hard? 421 00:22:54,800 --> 00:22:57,640 Why put yourself through the push ups and the disciplines? 422 00:22:58,120 --> 00:22:59,360 Why? Good question. 423 00:22:59,360 --> 00:23:02,880 Why? Best answer to why, I think is 424 00:23:02,880 --> 00:23:05,200 the second question. Why not? 425 00:23:06,320 --> 00:23:08,760 Why not see how many books you can read, how many classes you 426 00:23:08,760 --> 00:23:10,520 can take, how many skills you can develop? 427 00:23:11,240 --> 00:23:14,360 Why not see how valuable you can become to the marketplace and to 428 00:23:14,360 --> 00:23:18,480 your friends and to your family? Why not see what you can make of 429 00:23:18,480 --> 00:23:21,040 yourself? Why not see how far you can go, 430 00:23:21,040 --> 00:23:24,240 how much you can see, how much you can earn, how much you can 431 00:23:24,440 --> 00:23:26,520 share? Why not? 432 00:23:27,240 --> 00:23:30,040 That's the heritage all of us have in America especially, is 433 00:23:30,040 --> 00:23:32,920 to see what we can make out of our lives now that we've been 434 00:23:32,920 --> 00:23:35,320 given this extraordinary opportunity. 435 00:23:36,360 --> 00:23:40,640 Now my third question, I'd love to ask you in person, but since 436 00:23:40,640 --> 00:23:44,080 I can't do it in person, I want to ask it of all of you, but I 437 00:23:44,080 --> 00:23:47,280 want you to take it personally. And my third question is, why 438 00:23:47,280 --> 00:23:51,600 not you? Why not you with good self 439 00:23:51,600 --> 00:23:54,200 esteem? Why not you starting to change 440 00:23:54,200 --> 00:23:57,080 and setting goals? Why not you starting to make 441 00:23:57,080 --> 00:23:59,000 progress toward financial independence? 442 00:24:00,320 --> 00:24:03,400 If I can do it, you can do it. I wished I had a lot more 443 00:24:03,400 --> 00:24:05,400 testimonials here today besides mine. 444 00:24:05,640 --> 00:24:08,560 A whole steady stream that would come by and tell you their 445 00:24:08,560 --> 00:24:11,480 story. Someone who started with nothing 446 00:24:11,480 --> 00:24:15,560 finally run a big enterprise. A mother who was on welfare. 447 00:24:15,560 --> 00:24:19,480 Now she owns her own business. In addition to my story, I wish 448 00:24:19,480 --> 00:24:22,720 I had a lot more. And if all of them told their 449 00:24:22,720 --> 00:24:24,920 story, guess how they would probably wind up their story? 450 00:24:24,920 --> 00:24:27,080 They'd probably say, just like me, why not you? 451 00:24:27,840 --> 00:24:30,280 If we can read, you can read. If we can change, you can 452 00:24:30,280 --> 00:24:32,640 change. If we can figure it out, you can 453 00:24:32,640 --> 00:24:34,480 figure it out. If we can turn it around, you 454 00:24:34,480 --> 00:24:37,000 can turn it around. There isn't anything you can't 455 00:24:37,000 --> 00:24:38,720 accomplish. That's what those testimonials 456 00:24:38,720 --> 00:24:41,400 would say. And so I want to say it to you 457 00:24:41,400 --> 00:24:42,480 personally. Why not you? 458 00:24:42,480 --> 00:24:46,640 You, you've got the brains, you've got the the stamina, 459 00:24:46,640 --> 00:24:49,800 you've got the vitality, you've got the interest, you've got 460 00:24:49,800 --> 00:24:51,520 your life ahead of you. You've got the future. 461 00:24:52,000 --> 00:24:54,040 You can do it. If anybody can do it, you can do 462 00:24:54,040 --> 00:24:55,440 it. If one of us can do it, hey, we 463 00:24:55,440 --> 00:24:59,040 all can do it. And now here's my last question. 464 00:24:59,440 --> 00:25:00,240 Why not? Now? 465 00:25:00,920 --> 00:25:05,080 This is a good time. What a good time to set your 466 00:25:05,080 --> 00:25:07,600 goals, work on yourself, work on your skills. 467 00:25:08,240 --> 00:25:11,120 What a good time to get it together. 468 00:25:11,360 --> 00:25:13,440 What a good time to start this process. 469 00:25:13,920 --> 00:25:18,120 Personal development, growing, changing, developing, having a 470 00:25:18,120 --> 00:25:21,120 good plan for your money and for your life and for your future. 471 00:25:21,840 --> 00:25:23,880 Why not now? Then? 472 00:25:24,120 --> 00:25:28,440 I wish you the best. I want all that I've gotten to 473 00:25:28,440 --> 00:25:31,040 be yours and much, much more. God bless. 474 00:25:31,120 --> 00:25:31,520 Goodbye.