How your particular lifestyle now can affect your life later

ABOUT THIS EPISODE

How will your decisions today affect your future lifestyle? Bestselling author and financial expert John Browning shares a quote from Albert Einstein and explains things in a simple way. This could be a life-changing episode. Listen and learn.  

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert in number one Amazon bestselling author, John Browning Jones, the founder of Guardian Rock Wealth and serves clients across the United States. John's the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copy mailed right to your door. I'm Michael The lawn, your host for the next few minutes as we chat with financial expert and business owner John Brownie, well illlod. John Browning, welcome back to your podcast. How are you today? Doing doing well, I'm glad. Well, yeah, how about you? That's a good answer. I'm doing really well. Also, I like that. I told...

...somebody at Church on Sunday I was doing. They said how are you doing? It unbelievable and they kind of looked at me. They physical look on like can you can take it either we want. I'm always doing great, though, and especially when I'm here talking to you, because I get to learn a lot of stuff about finances that I it's just not in my sweet spot. And and here's here's kind of where I've been talking to some people, John, about lifestyles, right, and not lifestyles with the rich and famous, with what's his name, but lifestyles of you know, can I, is it okay if I ride go by a Harley Davison? Can I put a swimming pool in now? And what's that going to do to my life down the road? And so really I guess that question is how, how did your particular lifestyle today affect your lifestyle later? Or how can it? Maybe that's the better one. How do you talk to people about that concept? What do I do today versus how that's going to impact what's going to happen down the road? Okay, yeah, let's let's talk about that a little bit. I do answer that question, you know, sometimes when...

...it's not even asked, right, yeah, because I feel like people need to hear it right. But the one thing that I go back to, and somebody says this, is is Albert Einstein. We all know him, right. Yeah, kind of smart, knew what he was doing, although people didn't think he was smart when he was first, as you know that they actually don't hum. But he was in school. He frankly, what happened, we think, is that he was bored. So he did have to do well in school. But we found out that he was actually brilliant. Yes, maybe one of the most brilliant minds that's ever walked right. They math, but one of the things that he said was that compounded note. A really smart guy. Right. He came up the the theory of relativity, which we use for everything today. Right. He said that compounded...

...interest is the eighth wonder of the world. Okay, okay, so you know what the seven wonders of the world are, right, or you know what some of them are? Anyone? Right, Geral? I? Yes, yeah, right. So, so those are pretty cool things and for him to say this is the eighth wonder is kind of a big deal. But he also said that compound interest is the eighth wonder of the world and he who understands it earns it, he who does not pays it. Huh. Okay, so you think about it this way. Let's do a little bit of math, and I promise I won't make it too hard. We're going to keep things round. Numbers here. So if you were to invest, as some of them at ten percent for five years, you'll multiply. You'll multiply your wealth by about one point six times. Right, right. If you invest your capital at that rate for ten times longer than that,...

...say fifty years, you'll you won't multiply your wealth by sixteen times, even though that would seem to be the math. That's not actually what happens. If you actually do the math, you'll actually multiply it by a hundred and seventeen types. That's the power of compounded interest. That's great. Now some people are going to need to rewind this and think it through, because I did. I had the math done in advance. Okay, there you go. I have an advantage. But rewind it and listen to that again, because it's a tough concept because, like Albert Einstein says, it's kind of tough to get kind of stuff to wrap your mind around. But it's extremely powerful and if you understand it, you can use it for you. If you don't understand it, it might use you and interesting. Okay, all right. So now now I've got a concept of compound inters. How's that...

...going to affect my decisions? Today versus later. All right, the reason that diet, that I went through that first and could that makes all the difference in the world. Right, okay. So, while I you know, because you've read my book build a life, not a portfolio, that it's extremely important to be that, myself, my clients and people that I know experience their best life now as well as later on. So I'm not saying deny yourself everything and then you'll be great, you know, excellent years from now. That's that's not the point of this. But here's an exercise to think about. When you reach into your wallet or you pick up the digital wallet. That's I don't even quite understand here. I still struggle with using my phone to pay for things, but I'll get it one of these days. I'm old. But when you reach into that wallet and you go to paint for something, especially when you're looking at a big ticket items,...

MMM, just ask yourself the question. Am I'm willing to give up ten times what this cost me today? Because if I if I didn't buy that, if I invested it, compounded interests working for me, I could actually have so if I say it's say I'm going to buy a big ticket I don't like a car. Is this thirtyzero dollar car worth now? Worth Three Hundredzero? MMM? ME, ten years from now, or as so many cars are today, if it's a Fiftyzero car, is it worth five Hundredzero? For me, ten years from now, it's now. Sometimes he answer to this is yes, okay, right, absolutely is. But it's an interesting practice habit. You know, not all habits are bad habits. You can develop good habits. It's an interesting habit to get into because maybe you...

...won't. Maybe you won't do the starbucks thing every day. Now you will. That brings you joy, absolutely, but but maybe you won't do something else. Right, maybe you not spend that money there. Maybe you do something. Maybe go for a hike, is said, going to movie or some yeah, yeah, well, casing points. I'll reveal some stuff. Right. So in our family we've thought about this for years and years, to a swimming pool. Well, I've got girls at home, whore, twelve and ten, and my wife came to me finally said lest she has do it. So we're running out above ground pool in this year. Well, that's a chunk of change and we had to go through that analysis to go. Well, we have this money. We could put it in a swimming pool and a deck and Anda, or we could put it in our retirement. And what's going to happen, Johns? We're going to put it in the pool, but we're going to live life for the next decade with our kids and all their friends. We're going to have a life and hopefully get a little bit of money out of the appreciation of the bool. I don't know, but it's that tradeoff. That's what you're talking about. Is that trade off that sometimes it says I'm going to spend the money because it...

...builds my life today, versus going no, we can't do that, we are saving for retirement. It's that back and forth. I wouldn't do that every day and we've thought about it for many years. But that, that's kind of the the tradeoff for the that's what you're talking about, right. That's that's exactly where. Right. Good, you thought it through. Oh yeah, no, and any but most people don't think it through. You know, it's just natural. While I need a car and I want the red one with the power windows that's got five hundred horse power or what exactly? Yeah, and we've saved some money. So we're not going into massive debt to buy this thing, right, and so it's all of those factor into it's not an impulse decision, even though a lot of our friends think it is. It's like, no, we've thought about this for a long done. Yeah, that's right. It goes to like judging people, right, you have no idea what's behind what, what that person has been through or or what that person has thought through. But but you brought up another...

...great point, right, is if you finance it. Oh My yes, more working against you, unless you can finance below the rate of inflacier, which you might be able to now these days. Yeah, yeah, yeah, Guy, really good credit and all that. And how you do that. That's part of debt management, which we've talked about a little bit before. To Yeah, is is debt that that maybe isn't so bad for some people. Any debt is bad, but but they we're we're getting off topics, right. If you do invest in something like a car and it costs, you say, four or five six per in on the financing of it, well, that's even worse, right, that's that's damaging the future even more. The yeah, we can talk about that forever because you know, I live in a near or wealthy area and people are always driving new vehicles. I'm sure they're lea seen it for four or five six hundred dollars a...

...month and I always think, you know, if you just drive a car for a long time and put that money in an investment or a portion of that money and investment, you're going to have more money long term and still have a good car. That's just a philosophy, right. That's my philosophy. They may not abide by that, but that's okay. We tend to buy, use cars and drive them till they die and use that other money that we would be making a car payment on in putting that in the investments long term. So hopefully we're making some good long term decision while enjoying a good, reliable vehicle. That's just one thought. Yeah, yeah, bottle line stuff, things like that. Right. I buy their least cars. You know, they're exactly, exactly great, brand new, but those are individual decisions and that's okay, that's right, that's right and and you know it's okay like people. You know, people talk about dieting and healthy lifestyles the same thing with your financial lifestyle. It is so you can sit on the couch every day and meet a bunch of sugary snacks all day, which...

...sounds really good. But longer term, ten years from now you're going to have a few extra pounds wrong ground, your waistline most likely, and your knees are going to hurt a little bit more. Your feet are going to hurt a little bit more and you pay for it later on. Just like that. There's good financial habits and bad financial habits. You can get into. Yeah, well, and I think at the end of the day, these lifestyle questions, most of it, are not yes or no, black or white. It depends on your unique situation. And what are you what are you doing? Why are we thinking about putting a pool in? Well, these are the reasons and it just makes sense. You know, five years ago it didn't make sense. Fifteen years from now it won't make sense. It makes sense today, right, and but having somebody like you trying to bounce these ideas off of I mean we called a lot of counselors in our in our life to say here's what we're thinking about doing, and you know, and most all of them said, yeah, that sounds like a good idea. So having a counselor like you that to bounce an idea off of and say, I'm thinking about doing this. Yeah, okay, here,...

...have you thought about this? And listen, thisn't this. Okay, that's fine. At thing of day. It's their life. But you're helping them build that life and think through some some questions that many of us don't think through because we're just emotional beings that we just want that Ding Dong and I want to sit on the want to sit on. Let's keep my being dogs and never be out of shape. I won't look like Jack Lane. Right. Many of our listeners won't know who Jack Lane are, but hopefully many of them will. So anyway, it's all about living in a life, if that you want to live, building the portfolio that you want to have and doing both of those at the same time. That's what John and his team at Guardian Rock Wealth help you do. So reach out to Him Guardian Rockwellscom and let him help you understand how your particular lifestyle today can affect your future, for good and for ill. But John will have a great conversation with you. John. Thank you so much, sir. Here they always a pleasure. All right, we'll talk to you again soon. All right, money really is a big part of our lives, and John Browning...

...can help you and your family learn how to keep money in the proper perspective. It's important, but it's only a tool that can help you build the life that you want. If you like, John Emilie a free copy of his book build a life, not a portfolio. Go to John's website, Guardian rockwealthcom, and click the contact to US link and send your request. John Will Mell a copy of his book right to your door absolutely free. Thanks for listening to building your life podcast with John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automagically when it's released. Have a terrific day.

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