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Money Mindset Part 3
208 Plays2 years ago
Join hosts Phillip Ramsey and Arron Cramer on the Uncommon Wealth podcast as they delve into the third part of the series on how to think about money. In this episode, we'll explore the concept of financial freedom and the importance of defining it for yourself. We also discuss the dangers of comparing yourself to others and the true meaning of wealth. Discover how to prioritize relationships and experiences over material possessions and gain a fresh perspective on what it means to be truly wealthy. Tune in for an insightful and thought-provoking discussion on money and mindset.
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Transcript
Introduction to Uncommon Wealth Podcast
00:00:00
Speaker
Everyone dreams of living an uncommon life, and the best asset you have to achieve your dreams is you. Welcome to the Uncommon Wealth Podcast. We're going to introduce you the people who are living uncommonly. We're also going to give you some tools and strategies for building wealth and for pursuing an uncommon path that is uniquely right for you.
00:00:25
Speaker
Hello and welcome everybody to another episode of the Un-Comi-Wealth Podcast, where I am your host, Philip Ramsey. And I'm Aaron Kramer. Thanks for tuning in. We're grateful that you're listening to us. We're two advisors who kind of get geeked out about letting other people achieve their financial freedom.
00:00:40
Speaker
Use money as a tool. It is a tool to help you unlock what you get excited about. So that's what we do every day on Commonwealth. We take people, we give them financial plans, and then we also manage money in order for them to get excited about their life again.
Authenticity vs. Elevator Pitches
00:00:54
Speaker
There's a nutshell. There's the elevator speech. Here's the deal. I hate elevator speeches or elevator. They're so lame. They're so lame. Like so.
00:01:03
Speaker
if you don't know anything about sales. An elevator pitch is something that you say in 30 seconds, and then you try to get people excited about it. I don't have that, and nor does Aaron. But we'll tell you what we did yesterday. We're super excited about it, which seems to be the most authentic way to do it. We're authentic. This is our podcast. It's my parents' favorite show. I heard it's my aunt's favorite show. She said it was her favorite show. So there's three people. And I bet you've got to listen to it. And your daughter. So we got four people we're listening to. Thanks for listening.
00:01:31
Speaker
at least four people. We actually did get some analytics recently, which was actually crazy to
Mindset on Money and Financial Planning
00:01:37
Speaker
think about. And so long story short, we're grateful that you'd spent your time with us today. We don't take it lightly.
00:01:45
Speaker
We're on a series to talk about kind of like money, mindset of money. We're still in continuing to do that. We feel like there's a couple things that are important when we're thinking about money and managing money and building financial plans that are super important to you and your financial plan.
Defining Financial Freedom
00:02:00
Speaker
Aaron, you love this topic. I love this topic. We all do. How have you been enjoying this last series of just the mindset and money?
00:02:09
Speaker
I really like it. I mean, actually, I lied. I love it because I'm your mind and your emotions and your psyche around money is legitimately what either makes you or breaks you when it comes to money. I think they're so true. Like we are our worst nightmares. We are our biggest like adversaries when it comes to this stuff.
00:02:31
Speaker
once we can kind of capture that or even think through some of the topics that go through our heads, I think it's powerful. So that's what our hope and intention is today. We're gonna talk about three things, as you guys have probably heard in the last couple of parts, we talk about three topics. The first one, oh baby, can I get a witness? Freedom, holy cow. So let's just define freedom because I think a lot of people will be like, well, I'm going for financial freedom.
00:02:58
Speaker
Oh my gosh. This is how I define it. I'm going to hear your definition of it. But the freedom to do what you want, when you want to do it, with whom you want to do it with, is to me freedom. Now that to me, if you can't get excited about something, that could be something you could get excited about. Here's the deal that I'll talk about with freedom. So let's say money's no object, you can have, you can
00:03:22
Speaker
You can do what you want, when you want it, with whom you want to do it. I still think there needs to be a bigger purpose for you. And that's the reason why Aaron and I have faith. That's a whole other topic that we can go down. But I love the kind of saying that the difference between a wealthy person and a poor person is the poor person has the hope that money will change things. The rich person realizes that it wasn't, it doesn't.
00:03:49
Speaker
For me, I'm super excited to help our clients start kind of chasing this financial freedom. So they have the freedom to do whatever they want, whatever they want, whenever they want to do it, with whom whatever they want to
Purpose and Financial Freedom
00:03:59
Speaker
do it. But if they don't have an ultimate purpose and a guide to help them get there, I'm telling you, it's going to be a lonely deal once you've hit the finish line. So freedom, it's a big deal and people want it. So you tell me what your definition is.
00:04:13
Speaker
I kind of threw you on the spot. It was so hard. I guess like, since we were so alike, since we worked together, like we kind of share the same values, very similar, but I guess for the listeners, when I think of freedom, so if I don't get triggered in the sense of your uncle. Yeah. Yep. Dave, Dave Ramsey, everyone, which is not really my uncle. I always will say that, but joke, but, uh, it's basically, I view freedom as when my alarm clock goes off or I wake up.
00:04:41
Speaker
And as soon as my feet hit the floor, I can do whatever I want. Like that, that to me is free. Like, so I don't, if I didn't have to go to work or didn't, or if I wanted to go to Rome that day, if I wanted to do that to me is freedom. So, and what buys that? I mean, it's finance, financials. Like you can't, right now a lot of us are,
00:05:07
Speaker
imprisoned by our own routine because we have to do it.
Measuring Financial Goals in Time
00:05:11
Speaker
We have to go pay the bills. We have to do those things. That's true. And we need that paycheck every single month to keep on top of the expenses that come in every month. But if you can get ahead of that to the point where you start creating, you can start buying time. That's a good way. There is an exercise that just remind me of is instead of talking about things in dollars, talk about things in how long is it going to take you to achieve that
00:05:38
Speaker
object.
00:05:39
Speaker
How in the world do you do that? We've done a simple step on it, I believe, but it's like, let's say you want to go to, I don't know, Cancun. It's going to cost you and your wife $6,000. I'm throwing this out there. You're probably going to be listening to this in 2030 and be like, $6,000 to go to Cancun, I'm in. Okay. So, and one of our jobs here on Commonwealth Partners podcast is to try to make things evergreen. This is not. All right. So $6,000 to go to Cancun.
00:06:08
Speaker
How long is it going to take you to work in order to pay for that trip in Cancun? Fun thing, right? And you can usually try to figure out how much can you pay, how much you get paid an hour. Okay, then multiply that out, right? Very interesting.
Personal Definitions of Freedom
00:06:23
Speaker
Another way to do like 2.0 on that exercise is to figure out how much disposable income you have and how long does it take you to get that disposable income for the $6,000. You'll find that things in time is kind of depressing at times.
00:06:37
Speaker
Yeah, but you'll find out what really means a lot to you, though. That's right. Come on. So freedom, financial freedom in anything is something I think a lot of us are dreaming of and scheming of and planning for. And it's powerful. And it's something that is going to be very telling on what you then spend your time with. And so one of the questions I'll ask people when we first meet with them is like, hey, money's no object. What do you do tomorrow?
00:07:04
Speaker
And just hear what they say. Like that's one way we can get people excited about their finances, but it's very telling when, when you can hear what they have to say. And they usually talk a lot longer than they think they are because they're finally getting excited about their life again. Power. Well, then it's like, it shows you that it's different to everybody. I think you find a lot of people these days and listeners don't fall under the strap if you can avoid it, if you can help it. But like,
00:07:30
Speaker
Your, your version of freedom, financial freedom is not the same as your next door neighbor. Yes. Everybody's story is different. You're unique to your own person. So like, don't have somebody else tell you what financial freedom is. That hints my joke at the beginning.
00:07:48
Speaker
Um, just really find what makes you excited. Cause the thing is like, for me, I love this job. Like when, if I won the lottery, the mega millions, I guess what? I would still wake up and come to work. I love doing this. I love it. I would do it for a lot cheaper, probably or something. I don't know. Right. But like, um,
00:08:12
Speaker
But I still do it. You do it in some capacity, which I think is a really good litmus test on how is your life going, listener? Are you waking up every morning and if you money were an object, you would still be doing what you're doing in some capacity. Now, things would probably change, right? We might hire one or two more people to take some things off that we don't like to do.
00:08:34
Speaker
Oh yeah. I would be just doing what I really enjoy, but yeah. Yes. But we would still be pouring out and serving people, getting them excited about what their future looks like, uh, in some capacity.
The Danger of Social Media Comparisons
00:08:45
Speaker
I think that's another, I would say, you know, your elevator pitch is I get to do what I love to do every day. Uh, and that's what we try to do for our clients. Okay. So that's one. All right. You also brought up something, which I believe is our second point. Oh yeah.
00:09:01
Speaker
which is basically don't use other people's definition of success or don't get jealous of other people. You don't know what their situation or circumstances are when they pull up with a brand new Lamborghini Diablo. Or let's do it like in this generation. Don't get caught up on the persona of social media.
00:09:24
Speaker
Oh, that's good. That's valid. Yeah. Yeah. But you don't know like what people are dealing with or like how much they had to finance or how much of their monthly expenses go to said new shiny.
00:09:41
Speaker
car or or things and so that also is something i think is everybody needs to hear because in this social networking social life and everybody can kind of see everything everybody posts a highlight picture of their life so easy to be like i am a complete deadbeat.
00:10:01
Speaker
And I don't have all these new things, but let's be honest, like sometimes these new things are bought with debt that are capturing some of their cashflow every month. And maybe that percentage is too high.
00:10:15
Speaker
Or maybe they are redlining, as I like to call it, of like their debt is encompassing most of their income every day. And they are stressed out of their mind. I mean, they're smiling with their new car. Yeah, I get it. But that's why they have buyer's remorse is because they're like, I can't afford this. If something were to go wrong with my cashflow, you get it. Let's go. Yep. I mean, it's just that whole.
00:10:41
Speaker
Every, it's paycheck, living paycheck to paycheck. And some people are just living on a paycheck every month. That's just much larger than others. You know? Yeah. Take paycheck away. Everything goes away. Yeah. You know? Yeah. I found, you know, we get a, we get the opportunity to work with some high net worth people. Also we get, we're not above just like, Hey, we'll jump in the trenches with you. You're living paycheck to paycheck. We're in.
00:11:06
Speaker
But what I found early on is if we're starting to talk about like just dollar amounts, it's like, whoa, there's a drastic difference. But when you start talking about percentages, things get boiled down pretty quickly. Like that surgeon might have a lot of money coming in, but he has a lot of money going out, which he's getting used to.
00:11:26
Speaker
Then you have a person that works at, I don't know, some nine to five job and has a lot less money coming in, but a lot of less money going out. And so this is why the mentality of, hey, you gotta stay in your lane. You've gotta be a good planner with the income coming in that you have, not anybody else's. And what is your definition of success? It can't be the surgeon's definition of success just because he has more widgets coming in, but he has a lot more widgets going out.
00:11:55
Speaker
but the percentages are the same to me or that's like, I know this is totally biased because if you're like a really wealthy person, are you really have a lot of very strong paycheck coming in, but it's going out every month. You're not typically probably working with a financial advisor. Like you're not going to come to us and be like, Hey, I want to start investing because they don't have anything to invest.
True Wealth and Relationships
00:12:17
Speaker
But, um, I will say,
00:12:22
Speaker
for all the wealthy people that we get the privilege to serve and help. And that comes from all sources of like income. Cause you can, you can acquire wealth on lower amounts of income. But it's funny when you get, we sit in front of these clients that have entrusted us and you see their like mentality. They have a ton of money in the bank. They can do whatever they want. You know, for the most part, I'm not saying like they're,
00:12:50
Speaker
like these Uber rich people, like famous people, but like they have way more money than we could dream of to have someday. And they don't care to have fancy cars. They don't care to have like all their, we're talking about like making memories with their family. Yep.
00:13:07
Speaker
and experiences. Yeah. Basically what you're saying is sometimes the most wealthy people in the world drive the worst cars, like the cars they've been driving for forever because they value things that are different than the other person, the shiny objects, the things that are going to be poof gone here at times. So that's, that's a really good point. So I'm glad you brought that up because
00:13:33
Speaker
Maybe that's why they got so wealthy. It's because they learned how to live under their means, save a lot of money, right? That would be like Warren Buffett's thing. He's like, well, just time is the biggest thing. Yeah.
00:13:46
Speaker
For Warren Buffett, that's what he would say. He's like my x-factor has been I've been doing this for a long time Yeah, and I think that he lived under his means and he knew how to invest the different or invest You know a lot of his income. Yeah, so it's also that mentality to like a little bit like this a lot of psychology shows like you're always chasing for the next step and
00:14:08
Speaker
You know, that's how a lot of these like big brand, you know, like first companies, watch companies, they get people. They want people. People always want to be at that high level, you know, but then you look at the like uber rich people or wealthy people and they're wearing Levi jeans. Like we have the money in the bank. You don't care. Yeah. You know, right. It's like, oh, it's really fancy. It's like, oh, yeah. Okay. I can buy 10 of those, but I don't desire to have one. Like, yeah.
00:14:35
Speaker
Right. So it's fascinating what happens in the psyche and how we try to chase things. So it's like for this purpose of this topic that we're on on this is don't chase something just to chase something like.
00:14:50
Speaker
really make sure you are chasing what you desire. Like if you're a car, like where I know we always rag on cars and that's fine. Like I'm not a car person. I know Phil's not really a car person, but if you are a car person, that is phenomenal. Chase it. Yeah. It's your thing. Don't make like, if you can't tell me the engines and like all the parts to it and what's goes into it, like it means you're not a car person. Yeah. You know? Right. But if you,
00:15:15
Speaker
That's fantastic, but just don't be that person that's chasing something because society Corporate America told you you need something to fit your personality. Yes Alright third and final topic is all blending together very nicely. Thank you very much is Some of the wealth is I would say the majority of wealth you just can't see
00:15:39
Speaker
Like you just don't know. So if you had like 10 people's lineup and you know, from the most prestigious Rolex to the most, the greatest custom suit to the old Levi jeans, the truth is you don't know. You couldn't tell who's the wealthiest or not. Right. And sometimes let's say the most money is in the person who has the Rolex and the nice suit.
00:16:03
Speaker
but his life is in shambles. He's gone through a divorce. His kids don't talk to him. Like that to me is like, you just can't see wealth. And yeah, as much as Facebook thinks that, you know, we're posting our highlight reel, what's really going on there? Because, you know, the next two months ago by and they're like, wait, they're getting a divorce. Like I would never got that. So you can't really see true wealth. And that's the reason why we, we put wealth inside uncommon wealth partners, right? Uncommon wealth.
00:16:33
Speaker
It's not just about riches or dollar amounts there's a lot more that kind of. Equal out or add up to wealth in my book and you feel the same but true wealth i don't think that you can see and. For me i think you guys as listeners would get this i really value relationships as a big thing for me.
00:16:55
Speaker
I feel like I'm the most wealthiest person in the world because I have such powerful relationships, such amazing, really authentic. Like if I go down, people are jumping in after me. That to me is one of the ways that I define wealth.
00:17:09
Speaker
Other people don't, right? It's okay. But to me, that's something that I value very highly. And that makes me feel like the most wealthiest person in the world. I don't have the highest bank account, I guarantee in that 10 person lineup, guarantee. But I do feel like you can't see the wealth that I kind of value, which is always the case, right?
Enjoying Life Now
00:17:28
Speaker
So what are your thoughts? Yeah, I'm right there with you. I think that
00:17:33
Speaker
Wealth is beyond just what you have in the bank account or have access to on a piece of paper. Yeah. What would you say that you value as your wealth? Cause I'd say relationships is one thing for me. What would be for you? Yeah, mine is.
00:17:49
Speaker
Yeah, I guess you say relationships, but I've never done friendships and family. I don't have a good relationship with my wife and my kids, and I don't care about how much money I have in the bank. As long as I can pay my bills, right? Yeah, I can pay my bills. I mean, I want to grow. I want to be able to work towards buying that time.
00:18:10
Speaker
I mean, if I'm, I don't want to get there, it would feel so crappy to get to the point where at the end of your life where, okay, I can buy all this time. Yep. Cool. Your time you're buying is by yourself. Yeah. Yeah. The whole in one isn't that fun when by yourself, you know? Yeah. It's like, cool, man. High five. But who are you enjoying this time with? Cause you left everyone behind. Right. Yes.
00:18:33
Speaker
I don't, we have a client, he said it the best. He's like, I want to get to the top of the mountain, but you know what? I don't want to be by myself. I want to bring everybody else up there with me. If it takes me an extra 10 years, 15 years to get there, I don't care. Not enjoying something by myself. And I'm like a hundred percent. So I think that goes into like you're serving, right? Like you say relationships serving, like I think that's wealth, like be able to serve others.
00:18:57
Speaker
is just to spend time with people is just really enjoyable. And they're going to be a meathead. That's well to me too. We're having a good wait. Yeah, that's good. I also think like it's funny, like I want to be, I'm the guy who would say like, I want to be on top of the mountain with people, not just, you know, this beautiful view. And then like, I'm by myself. That doesn't do it for me.
00:19:18
Speaker
That being said, like I gotta be really honest, like I'll never get to the top of the mountain, you know, like we'll constantly be pushing of like, wait, there's a higher peak like we got here. Now there's a higher peak. And so I think that there is a warning into that too is like, don't start.
00:19:34
Speaker
or don't wait to start living your life. Like, well, as soon as I start making this amount of money, I'll start giving my time more or my resources more. No, that's baloney. Start doing it now. It's like, and start creating this habit.
00:19:50
Speaker
of doing what you want to do later, even if it's like, I don't even know how to do it. Well, you got to start now, even at a baby incremental step, because it's not something like, well, when this happens, this will now change my personality. That's baloney. That is not, that's not how it works. And I love talking to like people before retirement and it's like, Oh, as soon as I retire, I'm going to do X or I'm going to, no, you won't.
00:20:14
Speaker
You've ingrained yourself for 65 plus years. Like, and now you're going to do that. Like, nah, I don't think so. The whole saying old dogs don't learn new tricks. Yeah, it's true. Yeah, it's true.
Podcasting as a Shared Passion
00:20:26
Speaker
Like, Oh, I'm going to start golfing when I retired. No, you're not. No, you're not. Yeah. No, you're not. I can tell you as, I mean, as this podcast we're running, I'm 36 years old and I know granted, I love my job. So it's like kind of a hobby of my butt. I've come to realize.
00:20:43
Speaker
I have one hobby and that's being a me head and working. Like you're really good at it. You do so many things. Like you ultimate frisbee, scuba diving, hiking, all these things. I'm like, Hey, you got an adventurous life. And it's like, but if you ask Aaron middle of the week, Aaron, let's go do something.
00:21:02
Speaker
I don't have me picked because I don't know. Oh, that's good. All right, so that's the third one. I just can't imagine being 65. That's the third one is just you can't see the true wealth of people. But I would challenge people, especially in this podcast, to like then seek it out. If you can't see it, then how would you find out what somebody's wealth is? Well, you'd have to ask them questions. You'd have to have a relationship with them. You probably have to ask some interesting questions. You might have to spend time with them.
00:21:28
Speaker
Uh, so there you have to seek to understand. Yes. Hmm. Love it. All right. So there's our three points today about money mindset and like getting in this better mode of like, what does it mean? What are some pitfalls? Talked about freedom. We talked about like how important it is to just do when you want to do what you want to do when you want to do it with whom you want to do it.
00:21:48
Speaker
Uh, then you have the, you just don't know exactly what other people are dealing with, uh, in their life. Uh, and then also you just can't see wealth. Those are our three points today. I thought that was a fairly good podcast. That was great. I hope you all thought it was good listening. Oh man. If somebody asked me like, what's your definition of success in podcasts? I was like, honestly, like it's okay. If nobody listens to it, it's good for me. Right. So.
00:22:14
Speaker
I don't know, I was going to say, I was like, I mean, we're, we work together, but we don't actually get to like see each other that often because we're always working.
Closing and Call to Action
00:22:21
Speaker
That's why it's worked out to me. I'm like, yeah, this is the time we just get to sit there and talk, talk shop. Hey, you're going to be a fly on the wall. I love it. Okay. Yeah. You've been listening to Uncommon Wolf Podcast. I've been your host, Philip Ramsey. And I'm Aaron Kramer. Until next time, think about money in kind of a practical way. How's this going to change your trajectory? But we are rooting you on in your uncommon life. Thanks for listening. We'll be on comments.
00:22:44
Speaker
That's all for this episode, brought to you by Uncommon Wealth Partners. Be sure to visit uncommonwealth.com to learn more about our services. Don't miss an episode as we introduce you to inspiring people who are actively pursuing an uncommon life.