Money Discipline

Full transcript

What's up everybody and welcome back to the Anthony Eamon Show. Today we got a great topic for all of you. You're going like this. Cash. Money. What is money, money, money? Everyone wants to talk about money, everyone wants to be money, but what does that exactly mean and how does that relate to accountability over yourself? So we're gonna take this episode, yeah, and we're gonna divide it out to the point in your responsibility over your bank account and what that means and different habits you could do to align with that. And then what does money actually give you as you expand out as a business owner?

Okay, right?

So first I want to address everyone from day one. You go, you start a business, you went about do your thing, and your bank account chose anywhere between a big fat zero to a negative number. God, I know those I know those negatives. Horrible. And I think the first thing I want to point out, which is something that I always fell into, is I avoided my bank account for years. You said you what? I avoided my bank account for years. Because of the embarrassment or no money or it was embarrassed.

Dang, I know that feeling, dude. I didn't check it for years. Oh, yeah, that's when it's really bad. Yeah. Yeah, yeah. Like I was like, I know it's negative. We're just gonna ride this out.

Wait, but hold on, but then how did you pay bills and all that? I had the negative balances on the credit cards, right? So theoretically stacking up interest rates on credit cards and trying to just hit the next paycheck. What do they need for the next dollar?

Ay, ay, aye, that's tough.

Here's me taking accountability for that. That was one of the worst things I ever did. Why? Should have looked every day. Why? Because once I created that habit into checking my bank account, it showed me the leverage I had over my day based upon my financial situation.

Yes. Therefore, you can't just spend carelessly and you're very cautious and careful because now I can only have this amount of money and this amount. But it's tough when you have nothing, man. It's like, what's the point? I'm negative 800. You lose the drive to do so. Anthony, are you saying that because you're in a better financial position now? It's just hard to it's it's hard to think clearly when you know your finances are in the dumps. Does that make you how how do you take accountability when you're in the dumps? It's like, dude, I'm not making money.

Come on, man.

I learned to change my frame about looking. So the frame used to be I didn't want to look, so therefore I just avoided it. Exactly. And then when I was avoiding it, even though I worked hard all the time, I still felt messed that accountability and discipline drift off. So now I check because now I use it as a motivator instead of a demotivator. To push you so that the numbers get better. Yeah. I say, oh, I'm here, but I was here yesterday. And like, how many people in your own uh you've in your personal lives, like just from a personal income standpoint, have no idea how much money is going in and going out? Do you know?

Yeah.

Yeah, you gotta check. What the heck? You gotta I budget everything, man. I never not. What does that mean budget everything? Well, like I have I have X amount of dollars to spend on food. Or if I want to go to the movie, you know, extracurricular. I have X amount of dollars for grocery shopping every two weeks. X amount of dollars, I know this comes out of bills, so I gotta tell this. Why do you do that? So you don't overspend and end up in a hole. You got you need money to eat. I mean, if you if you otherwise certain money gets you you overspend. You spend more money than you're supposed to in this area than that, and now you don't have enough for bills, and it's just a trickle effect. And then by the time you know it, you're not growing. There's no progress like that if you don't budget and plan everything. That's not even just for finance, everything. How there's no progress. You're not keeping up with anything. That's why I do it.

And how many people in your own personal life that don't ever check their bank accounts? I know a lot of people. Why?

Why is it the case? And it's not necessarily because well, here's a few. There's people that are well to do, that I know, that are well-to-do, that don't check their accounts because they spend on the same things all the time. It's a it's it's it's it's just a repeated cycle. Like, okay, I know this goes here, this goes. They live a, I don't want to say a mundane life, but I guess you could say that. Whatever. They're never doing anything outside of the norm. That's one. That's I still am against it, but that's one. Two, the there's other type of people that I know that don't check the bank council get the same predicament that you and I are in, where it's it's so bad, who cares? Same thing with credit score. Check my credit score. I'm in the fours, man. You get what I'm saying? It's like, I'm in the fours, what's the point? It's done. Um, and they essentially they lost hope for those that crowd. They lope. It's like, who cares? What are you gonna see? Negative 10 today, negative 50 tomorrow. There's no point. Um, but regardless of whether position you're in, regardless of the position you're in, you need to check and know where your money is going. And just not even, again, finance this speaks to everything. You cannot progress if you don't check. Period. That's that's it's like checking your weight. Checking, it's like going for physical. It's like going for physical. You have to check. Blood work, you have to check, otherwise, you don't know where you're going.

You're lost if you don't know. What's the difference between someone making 50k a year, 100k a year, and 200k a year? As opposed to their financial means, but yet they don't check their spending. So if I made all those three brackets of income, right? It doesn't matter because people, the people that make 50, 100, 200, there's no difference between them. They're all broke. Why are they all broke? Because they don't create the discipline and the habits to stack and create compounding interest over a specific period of time. I know people who make half a million a year who are broke. Because as they level up, they just level up their spending to keep up. Yes. So there's no discipline that's created. You could be making $50,000 a year. Once you get past the point of Maslow's hierarchy of needs, right? So explain it. Food, shelter, safety, really, really basic necessities of life. Once you get past that, everything else is your fault while you're broke.

Hmm.

I see what you're saying. Because yeah, it's your decision to what to choose what you want to spend on. You already have the necessities. Now, if you chose to buy expensive cars and you have no money, it's your so you know people that make half a million broke? You know? Half a million?

Half a million. And it's broke? They have a Ferrari, they got a yacht, they got uh two million dollar. Hold on, hold on, hold on.

Hold on.

Yeah, they're broke. But hold on, hold on, hold on. You know someone that makes half a million and has a Ferrari and a yacht? And they're broke?

That's crazy. Because they constantly have to work more to make more money to start for sending back those things. Yes. And those things are not assets, they're straight liabilities. Meaning there's no selling them off to go make everything off. They're not making money out of it, not compounding money off. They're losing money off of it. Correct. That person, did they learn their lesson? No, I know so many people that are in that boat that never learn their lessons. Oh wow. And then they complain they can't retire. They constantly have to work, they can't start to make more money, they can't say to love it, because they never learn the discipline.

When did you learn that discipline? Just stop. Did you no, hold on. Did you even have that problem? Ever. Oh yeah. Oh, for real?

Yeah.

What was like explain? Like, what was it? What were you doing? What were you spending on? That made you go like, yo, I'm gonna just keep doing it. Anytime money touches my hand, it goes. Anytime money touches my hand, it goes.

I kept finding myself in a point where I was so stressed about life, and I was so stressed with the gym, I said, I deserve this.

I don't think that's a bad thing.

It's a bad thing when you're can't afford a steakhouse and you go out to a steakhouse and you drop $400.

Oh no, no, no. Okay, yeah, yeah, yeah. That that's dead. I mean, once in a blue, you gotta you gotta, you know.

You can treat yourself to a certain point, but I learned how to take that discipline and apply it. A good example, after all financial assets are met, correct. When I make a big sale, I know what my percentage of that I can pocket. So out of that percentage that I'm pocketing for the future, I can then treat myself. Yeah, now I do. Okay.

What what okay? So alright, got it. So you sometimes you so this is when you have the gym.

Yeah.

When you have the gym, you would just you just stressed out and go to a steak dinner? Like that's how when did it change?

When I had my kids.

Oh wow. That's when it really that's when you stop that.

I literally looked at my wife and I was like, we need money for their future. We can't be going steak dinners and all that.

Pay paycheck to paycheck. Hey, let me ask you this. When you were doing that, what was your wife saying? When you were going for the steak dinners.

She I'm gonna always so it would get to the point, I would spend, spend, spend, and then be like, honey, we're really broke, we have no money left. And then she'd be like, I thought we said we were good. Because I never wanted to stress her out. Because she told me I trust you with the finance, financial department of the household, that's your role. And I did a shit poor job in that role. And then when we had kids, I was like, wow, I need to stop doing that. Hold myself accountable for the finances of the household and take control over it. So I said, okay, if I'm in charge of our finances, I need access to your bank account, your credit cards, my credit cards, I need everything in one place. That's how you do it. So I could track our household income and what our household going out is. Because we're married, so the income is not the same. Okay. So everything needs to be treated as such. So you don't separate it?

No, everything's together. Wow. So it took you having kids to realize, yo, I got this problem, I gotta stop. This is the same thing you and I discussed before. It's traumatic experiences is what changes people. You said the guy with 500,000 has Ferrari. He has a yacht. One came before the other. He didn't learn. And he went and bought the yacht or the Ferrari after.

The point is, it doesn't matter how much money you make if you never create the discipline.

Discipline, bingo.

In order to hold on to that money. Yes. And it's the other side of that is also wrong. And I did a whole podcast about debt and compounding interest. Yeah. And that's just people go look at it, but just to kind of piggyback off of that. Holding your money in a bank account, or holding your money in a savings account, or holding your money underneath your mattress, or buried it in your backyard is just as bad as spending it.

No, no, no, no. Wait, wait, wait, no, no, no, no. I get where you're going, but it does, it duh, you do you it does. I mean, by your pennies, it increases by the pennies, yes. But spending it's it decreases. How no?

Yes. What are you gonna say? If I give you a dollar, yeah, and Yao puts his dollar under his mattress, yeah, yeah. Is that dollar in this?

No, no, inflation. Yes, it goes down. You know what's funny you say that? You know what my dad always used to tell me? Save. Save, save, save, save, save, save, save, save, save. Later on, as I got older, I realized that was wrong. Because no one ever taught him the other word. Invest.

It's poor men's men's context. So never we're never we're never taught that. We're taught to hoard our money. Yes. Keep it in. For a rainy day. For a rainy day. Now, there is also something to be said for a safety net. Oh, I mean, yeah, yeah, yeah. The rule of thumb is a 90-day threshold app. You should have 90 days in cash on you.

That's what I say.

Reason being house catches on fire, something crazy happens, a big medical expense. You have that money you can access right there. That makes you liquid.

Liquid cash, yes, I agree with that.

But 90 days. Anything beyond that is excessive, you think? Is excessive. You don't think six months?

I like 90 days.

I live, you know how I live.

Yeah, yeah. You're wild. I don't know. I was no, you're 100% right. And Anthony, would you I think this you shouldn't invest until number one, debt is cleared. Um depends on the debt. I'm like credit card bills and stuff like that.

Well, let's be very specific. What do you mean? Right, so I can have a mortgage on my house. No, no, no, no, not that.

I'm telling you, no, no, no, that's it.

And it's not a liability because it's my primary residence. Exactly. No.

But it's still debt. That's good debt. Bad debt. No, no, I'm saying not to pay it off. You shouldn't pay it off. You should never pay it off. No. But why shouldn't you pay that off, yeah? Oh, is it, dude? Come on. Oh, because the the market return is like what, six, seven percent a year? Nine percent? Nine percent a year. And then pay, and then if so, you'll make more money investing than you will paying it off. So it doesn't make more sense.

So if you make minimum wage, yeah, and you're able to afford your means of living, like you have food, shelter, water, right? Every dollar above your 90-day safety net, people are like, oh, it's only a dollar. A dollar, you make an extra dollar every year, that's $365 extra dollars a year you have that you make 9% off of every year, that compounds up. Exactly. Exactly.

But everything's a dollar, yeah. Yeah, but it grows. It grows. That's but but but my but my original point is well, what do you think? Do you think it's wise to still have debt, bad debt, and invest? You just said the housing is bad.

Depends on the percentage, interest rate percentage. Well, SP. Well, like your APR on your credit, like APR on a card. Anything above 9%, payoff as quickly as possible.

Ah, there we go. So that's the stipulation. Anything above 9% payoff.

Anything above 9% payoff, anything below 9%, leave it. Leave it. There's R barring extraordinary circumstances. So in that case, don't pay your student loan, screw it. If your student loans are below 9%, don't overpay the minimums. Let me clarify. Because you're gonna kill the penalty. The people will be like, you know what? I got screwed because I'm not gonna pay that for like the penalty is okay. And this is not financial advice, they're not financial advice.

Yeah, yeah, yeah, yeah. Yes, but pay the bare minimums. Yes. And then you would say invest. Invest. Speaking of money, since we're on the topic of it, you said something very interesting. You and I spoke about it. We didn't do a podcast on this. You said it is wiser to rent than own. Facts. Anthony said this. I was shocked. I didn't know why until they explained it. Go ahead. Why do rich people rent? You tell me. What tell you what? What did I say? So Anthony said it's better to um, I'm talking about homes specifically. Even cars, you shouldn't own them either. But it's better to rent a house or rent whatever apartment than to own because of liabilities. The roofing and all these other things, it becomes a liability as opposed to an asset versus renting, you're paying way less and you don't have to worry about those liabilities. True or false?

Mostly true. Okay. Mm-hmm. What else? You remember the caveat on it?

No.

Up to a certain extent. There's a bar a bar minimum of what it's worth to rent it out.

It's less, that's pretty much it.

Yeah, so once you it the whole point is if you have variable income and you have a lot of variables in your life, you want to get rid of as many variables as humanly possible. Because the more variables are the more confusing to keep up with things. Why is owning a home a variable? Well, it's how the roof is gonna leak, the the yard work needs to be done. Oh yeah, problems are always gonna occur. Problems always gonna occur. So it's never just your mortgage payment. I see what you're saying. Right? It's always now extra expenses, yeah. You're gonna have lying around that you don't know are gonna come up, and it's gonna vary your expenses. What does renting do?

Stay Yeah.

Stable. It gets rid of the variables. Variables, it stabilizes. So now what is a free up? Extra income. And mental hunt space. Yes, correct. My roof goes, just to keep on that example.

What do you have to do? Yeah, to contract someone, find someone, go through the Google review, all this crazy stuff. So, how many hours is it gonna take you to find someone? Someone that can do a good pretty good job. It could take you it can take you days. Not hours. You can go through it and have to do reviews and come back because you're spending a substantial amount of money. You don't want to just choose anyone, so it can take you two, three days to find the right guy, check your review. A roof is what, 10k? Something like that?

Around $10,000, we can use an example. So it takes a couple days to find someone, then what then what happens? The roof has to be installed, right? Correct. So someone has to be home. Yeah. How many days is it gonna take to do? Usually they can do it in a day, depending on the roofing company. Oh, okay, yeah.

Yeah.

So now you have to take another day off of work. Yeah. Damn, you're right. So you just lost time, yeah, and then you did then it mental hits piece. You're spending that time researching to find someone to come to your roof. And now we're gonna make it even worse, yeah. Now that now you're calling companies, you're looking for a roofer, right? And you're comparing quotes. That's what I'm saying. You're meeting them to get quotes. Now you're gonna look at it. You have someone that offers you, let's say, $10,000, someone that offers you $10,400, another person comes in and office you $9,800. But people don't do the math together, right? Let's say you get it, you get your first quote is $10,000. And these are all companies you've edited off the beginning to get five-star reviews, right? It's gonna cost me more to sit there and wait for a company that's gonna offer me slightly less than it's just to hire that first company.

Oh, yeah, yeah, yeah, yeah. 100%. It's like you when you went for the car. Maybe you have to drive all around town. Yeah, yeah.

It's ridiculous. Think about it. Now you're you're doing all that extra work, all those extra hours, you save a couple hundred bucks. Yeah, stupid. You can put it in.

You should have just taken the guy to do a car.

Outside out of mind, right? Book it, get over it. Don't drop around. It's that's the place. You know it's good enough.

This is generally the price. Just do it and go for it. Just knock it out and get it done. As long as they're reputable. So that is why you say so. Then why do you own? Obviously, you're saving more, I'm assuming.

People can people can look at real estate. And I believe for those that make like get by means, like where I am currently right now, you're currently like that, you don't you don't have a million dollars in the bank. Right? It's good stabilizing to know you have a place to live, and it really isn't gonna go up much on a year-to-year basis because renting is gonna go up every year, right? It's gonna fluctuate and go up on that aspect of it. So that's one. Yeah. And then if you have a dog, kids, people are gonna destroy the house. Okay, I see what you're saying. That can also be another reason to own. And generally speaking, barring COVID years, because that was an exception, you can make three to four percent on your home year and year. Exactly. Three to four percent though, is typical. So those are the pluses. Those are the pluses. We're netting three to four, right? What I say about the stock market. Nine. Nine. So for someone just getting by, really wants to get involved in the stocks, really just wants to keep it general, owning home could be a good idea, but once you hit a certain wealth threshold, I don't I think owning home is a stupid idea.

Hmm.

Renting, that's why Grant Connect said that. Renting. Okay, so that makes sense. So the whole point just overall is you need discipline, regardless of how much you make. Which is very true. You can have somebody that makes $60,000 a year that has more money, liquid cash, than someone that makes a million a year. Hey, you know what's a funny statistic? I just found out 71% of Americans right now, 2026, don't have $500 liquid cash in their account. The credit card debt is over a trillion dollars. It's like tens of trillions of dollars. Dude, this is why when you this is why I just did it. Let me tell you something. This is why when you see people on Instagram, the nice cars, houses, they're traveling, don't know how they're really living, man.

How many people do you know make no money but yet buy luxury items?

Oh, there's a lot. Oh yeah. Oh, this there's oh yeah. I mean, that's a normal. That's that's interesting. That's what I'm saying. So you can't look at people and think, oh, they're happy, they got this guy. And that's usually what drives us to do these things. Like, oh, this guy's living good, he has this, I want to treat myself, I want to do it, and it pushes us, but it puts us in hole. We don't live, we don't wear our coats according to our means, man.

Now I'm gonna throw a little caveat on all of this. Let's talk about the other side of it. Spending money on things people need to spend money on, because this is a huge pet peeve of mine being in this industry. People will go spend $200,000, $300 on a shirt, go buy a nice bag for $5,000, $6,000, right? I know so many people that do this. That's but you have to come in here and complain about the price and say it's too expensive. Meanwhile, they have a $10,000 bag. Who he hit he hit something, right? Oh, you just hit something. You know what they talk about? You know what makes you the most money out of anything? Your health. 100%. The healthier you are, the more money you can be. Do the podcast on it, right? Fitness. Dude, Anthony, I hate it.

Clients specifically, Fendi shoes, Louis Vuitton belts, uh, Chanel glasses, but they don't have what you're asking for. You know what I realize that is? They just don't value you. And if they don't value you, especially personal training space, they don't value their health. That's essentially what it is. For me, they don't value their brand enough. So the question becomes, and maybe this is for another top, another pocket. So funny you brought this up. I was just talking about this yesterday. How do you take accountability in that space when in that situation? I'll tell you how to do it, but let me hear from you. What do you take coming in?

I look at, I am very analytical. I'm gonna figure that out. Yes, I know that.

Numbers guy, yeah.

Right? I look at, let's take what we do: $500 a week, right? What is that gonna give me in my space? I'm gonna feel better, I'm gonna have more energy throughout the day, I'm gonna be able to be more productive, I'm gonna live longer, right? This is all gonna compound. I'm compounding interest on myself. Can I make more than spending $500 a week if I had all that together? Without a doubt. If I am more productive in an hour, I'm not gonna sit there scrolling Instagram, get lost, go on Facebook, go to scroll. I'm gonna be good to go, have the energy, go out, be able to bring it in. On the flip side of it, interesting stats for you. The best salespeople look the part.

Okay.

Right? So if you're in fitness, you have to look like you're fit. People go to the gym, they look for the biggest guy and think he knows how to teach. He doesn't. 100% true. But you gotta look the part to an extent. You're not gonna go to the guy that's 200 pounds overweight and ask him for fitness advice.

So, with that being said, do you hire people that are only in shape?

No. Okay. Why is that? If you're not to have the discipline in order to do that, they have to be working out. Do you think you would bring we're different, we're rehab. I hire people that specifically have overcome specific medical issues. Okay. I'm looking at that more than I'm looking at.

What is looking the part in my industry in the creative space, in your opinion?

I'm checking your Instagram, I'm checking your.

That's what you meant. So it's not physically. Doesn't have to just be physically.

This is there's two sides. And then physically, the more attractive you are, the more you sell. It's true.

That's what it is. Hey, that's it's true. It's common sense. So now let me ask you this question. Do you hire only attractive people in your in your eyes? Like if somebody doesn't look nice to you, you're like, uh, this guy, he doesn't look would you would you like you know a pass on him? It's a hard question to answer. No, it's not. It is how tell me how well it's illegal. It's what? Illegal. Well, they're not gonna know, no one's gonna know. Oh, I didn't hire you because No, but there's other reasons you're not gonna say. I'm just saying. But it's your business. It's it doesn't matter, it's your business. If you don't want to hire someone, because they don't everyone knows that. If you're a nice looking person, woman or man, you're more likely to sell.

Regardless of that, it's more important to look on your inside for yourself and how you treat yourself. Because you are the frame on your employees, too, right? If I don't work out, I don't take care of myself, why don't my employees who do the same? 100%, yes. Right?

What you put in is what you get out. And and and and I don't know if it's in your SOP or not. That is in mind, it's funny. How about grooming? Do you have anything like that? You have to be well groomed. What do you mean? Why?

Grooming in general.

Do you understand what I'm saying just be well kept? Like, do you have anything like that? Oh, yeah, that we do.

But that's what I'm saying, though. Yeah. Clean shaven. Uh it's like cleaned.

Yeah, clean, clean. The uniform is filthy. All right, got it. What do you do now? And this all falls into money and discipline and wanting to grow all this stuff. What does Anthony do if somebody comes in and is not well kept? In your eyes, what do you what do you tell them to go get well kept?

Okay. What happened?

So it's it's it's it's the resume, the portfolio, and it's physicality. It's physical and the portfolio when it comes to looking the part to sell and make money. The resume and a portfolio. So no, going back to the original point, this was awesome. It was a lot of tip business. Going back to the original point, doesn't matter how much money you make. If you don't have the discipline, thank you. If you don't have the discipline, I don't know. Doesn't matter how much money you make. If you don't have the discipline, you will end up broke. Period. Point blank, period.

You need the discipline. You need to invest in specific things twofold. One, invest into things that are gonna compound interest for you greater in life. And then two, invest in yourself. Speak up, like I wanna I wanna piggyback off the investing in yourself a little bit more.

I was about to say that. What's your thoughts? Forget about stocks. What's your thoughts on self-brand, self-investment?

It's one of the most important things to invest into. Yourself. But it compounds the most. 9% is 9% year in year, right? It's gonna stay there. How much more money? Look at Yeah, but how longer? How much longer? Let's let's do a stupid example, right? Let's take an employee, right? You have an employee come in and pick a skill. I mean, it doesn't really matter. They come in, they're plumbers for you, right? I have a plumber come in, basic, okay, whatever. That plumber then goes, maybe there's an advanced credential plumber, like a master plumber. He spends $10,000 on that course, right? I can now give that plumber a raise, it's gonna be well over 9%. Or they can learn different skills to help level up their salaries way more than 9%. So, as an employee standpoint, you should always take every available dollar you have and invest into yourself. Memory never disappears. Stocks can go up and down. That's fine. Things go back.

This skills you learn never disappear. That is so fine. Memory never disappears, but everything else fluctuates.

It's dope. Even like even as an entrepreneur, like every dollar you get back, spend on yourself to invest. I've spent tens of thousands of dollars in coaching. I have spent tens of thousands of dollars in skills. Yeah. I have I it doesn't even matter because I know I'm gonna get that back twofold. And I'm gonna be able to apply that to make way more money, to help way more people, because I'm investing in them more not so it's never gonna die. This is taking it a step further. Okay. If redefined fitness goes out of business, tomorrow, let's say, right? It's done. You know what I don't lose?

The skill set that you can do.

The skill I know how to get back. Yeah, exactly. So how much quicker am I gonna get another company back to that level? Faster. Way quicker.

Well faster. So when you on the the the the uh the couch after the two of it, all those experiences that made you grow so you know, okay, I know not to do this anymore, I know the mistakes, I know the versus somebody that's new that never went through those things. Here's the problem though, Anthony. And I'll speak for myself on this one, not now, but back then. You know why people don't invest in themselves or avoid it at all time high? The time, impatience when you invest in a stock market or buy something, whatever for yourself, like the steak dinner, it's immediate gratification. Immediate. So it's it's great. I love it, it tastes good. I get a car, I got new shoes, a shirt, whatever. Investing in yourself, health, working out, uh building your brand, buying equipment, or you know, doing all the the time.

Not immediate. Can I give a nice example of that? That instant gratification. You know what hobby I developed to help with that?

Hold on guys, you gotta mute your phones. I heard someone's phone go off. Someone's phone went off. Just make sure it's on mute.

Go ahead. You know the hobby I created to help with instant gratification? What what? Gardening. What?

Gardening? Gardening. That's not instant. I wouldn't know. No, prevent. So you had that problem. Every human being as a teenager has that problem. No, but okay, here okay, everyone has a problem, but some people don't grow out of it.

But I knew I had to grow out of it in order to be successful, so I got into gardening.

So that was the core mechanism.

Why gardening? Because it takes time for it to blossom and grow. Freaking grow a tomato plant, it'd take you nine months, right? To make a bloom grow, get really ripe tomatoes, you gotta take care of it, you gotta tend you're not gonna reap the rewards of it for a long period of time. So you specifically got into gardening for that purpose? Yes. I specifically got in because I enjoy the labor of landscaping and then turned it into gardening as opposed to growing fruits and veggies. I have a half acre of fruits and veggies on my house. What? I just love it. It's wow, but it teaches you like with time, patience, build patience.

Patience, dude. That was my I still I still suffer from that. It's so hard. Go get some veggies. And I should. No, for real. No, yeah, I gotta figure out how to solve that. Listen, one of my biggest problems, I'm gonna be honest with you. You tell me, I don't know. Like if I need something for my business, I know I have to be patient because these things are expensive. You know, film is expensive. One piece can cost you four or five thousand, eight thousand, it's expensive. But if I have the money, I'll just go all out and buy. Like, I need that problem solved. I love problem solving, but to a fault where it's like you should have been patient and waited another month.

Have you ever calculated the ROI of what it's gonna give back based upon the thing you're gonna buy? 100%, yeah, yeah, yeah.

I always do that. Like, I I know I need this to get this, and then yeah, I always do that. No, I mean, physically to the dollar. Nah, nah, you do that. I don't do that. I never did that. I don't I don't even know how to start, dude. How would you calculate that? How would you calculate that?

You just figure out your LTV to CAC, your lifetime value to basically the cost of requirement of your customer.

Uh I never did that. But I I got you, I got you. I never did that. It's something I Anthony, explain what you mean because people are probably lost, right? Could you just explain that real quick? The LTV to CAC and prior to making certain purchases or investments, you need to do this calculation to figure out if it's worth it.

It's the only equation that's relevant for business. LTV to CAC. Lifetime. So the one you should always know. How much does my customer bring me in the lifetime that they're here, right? It could be a one-time purchase or it could be a recurring membership purchase based on the law how long they're staying. How do you calculate that? Write the LTV. Take, for example, they're spending $100 a week, right? And they're with you for 10 weeks. Your LTV is $1,000.

Yeah.

I'm making $1,000 off of us. And that's obviously gross profit, not net. Not net, yeah. Right? And you can figure that out and you can get deeper into it compared to the cost to acquire that customer. That's how much money do you spend to get that customer in the door?

Oh, I see now. Got it. So if you're gonna buy something for $5,000 and you got a customer for $2,500, you spent $2,500 to get that person.

Yeah, so take. Right? Yeah, so take Facebook ads as an example. I spend $500 a day on Facebook ads, right? Over the course created course of a week, it's $3,500. You're spending a week on Facebook ads. But I signed up, let's call it seven people, right? So each one costs me $500 or reduced per day. Same thing in broken. Yeah, same thing. So you have a $500 cost required, but that customer is gonna spend $500 a week for call it 10 weeks. That's $5,000. So it's $5,000 over uh and $500. That's your $5,000 over $500. So I'm netting $4,500 off that customer. Oh, I see what you're trying to say. So then it's worth it.

Yeah, so then it's worth it. Then it's worth it.

So now I know if I put in $500, I'll make an extra $5,000 back.

Okay. And that's what you do before you do any any type of investment. So now you know the $500 is worth it. But if you're so that's what so you won't increase your ad spends until you know. So you won't go to you won't just jump to a thousand. You have to do the math first and go, okay, hold on, I'm not making this much back.

Yeah, because it's also gonna matter, it's an algorithm, right? So you test for a week, you see where you're at, you see how much return you're getting off of it. If it's holding that ratio, then you say, okay, we need more clients, let's throttle this. So you push it up, you spend more, you get and see if it holds. If it holds and you're still pulling in the same amount, now you're doubling your business because you doubled your spent. You start with the spend, yeah. So it really doesn't matter you're spending the money. Plus, it matters what you get back. Every dollar I'm putting on a credit card is interest-free for 30 days. Oh so if I could customer finance that, meaning let them pay, I can have the customers pay in advance to pay that credit card down. And so I don't accrue interest over it. I can theoretically, as long as the equation holds, keep doubling my spend and always level up my business and make more and more and more money as long as I know that equation. And that's why you try to sell the whole package as opposed to month to month.

You give a percentage off to that. So, what's the benefit to them? They get value perks. Got it. But you never decrease, never discount our programs. Beautiful. I was actually gonna call you the other day and ask that. That's a great episode, man. I like that. So the whole point is, guys, if you make $10 million a year, if you can't, and it's funny, you heard this before. If you can't manage a thousand dollars, you can't manage a hundred thousand. John Hobrian said if you can't manage a hundred thousand, you can't manage a hundred million because the discipline is not there, you're broken. You gotta fix yourself first. You will always be broke if you don't learn to manage the money you have now.

Don't expect accountability for your money. Let us know in the comments before, guys. See you next week. Like, comment, subscribe. Peace.