The Newsletter Pro - September 2019

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Track These Key Performance Indicators Client Success How to Win at Business Do Your Employees Like You? The Means to Gain the Insights You Need




Meet Katie Hill

Buy a Fanny Pack, Change a Life

When I make a money decision, I’m always okay with playing the long game. I don’t do get-rich- quick schemes, and if something sounds too good to be true, it is. These two philosophies have kept my money safe and secure for a long time, and I don’t break those rules. I pay cash for most things. Debt is dumb. My primary house is paid for and so is my cabin. I don’t go into debt for things that aren’t assets, and I don’t have a mortgage because my home is where my kids rest their heads at night, and I want to make sure we always have a good, safe place to sleep. My financial advisor friends think I’m dumb for doing this. They think I can get that money working and make more money if I invest instead of paying off my house. First, that is a big risk. When was the last time the stock market guaranteed you a return? Paying off my house guaranteed a 4.5% return, and it has been one of the best decisions I ever made, because it removes a massive amount of financial pressure. Maybe I could make more in the stock market, but since my house has increased in value by 50% in five years and I haven’t paid any interest, I’m doing pretty well from a rate-of-return standpoint. Oh yeah, and I sleep very well at night, which, to me, is priceless.

successful and owns two businesses. He wanted to know how I invest my money. I don’t talk about investing a ton, and everyone has their own theories about what to do and how to do it, but since I have done a good job accumulating wealth, I’ll share my opinion here. Of course, I am in no way, shape, or form suggesting you do anything I’m about to detail here; these are simply my preferences for investing, and you should really seek the advice of someone who has degrees and certificates and is way smarter than I am. I think it is important to understand someone’s goals and motives before you listen much to what they say on this subject, so let me spell out mine.

I was on Facebook the other day, and I saw a post from a wannabe entrepreneur who said that renting your home is a smart financial move. They went on to say that you should sell your home to their investors who will sign a lease with you and rent the home back to you. They made the case that all the equity that is tied up in your house isn’t doing you any good and that you should pay rent instead of a mortgage and invest the money. This is some of the dumbest financial advice I’ve read recently, and that brings me to my main point: You need to be cautious about who you listen to for advice, both personally and professionally. There are a lot of fake rich people peddling you advice on the internet. Anyone can rent a nice car or house. Anyone can get a loan or mortgage, but few people have built real wealth. The same is true in business. A few months ago, I was talking to a guy who took eight-plus years to build his business to a point where it made $1 million a year in sales, and then he sold the business. Now he’s a guru teaching you how to be as successful as he is. He seems like a nice guy, but $0–$1 million in over eight years isn’t special.

I’m in this game for a few reasons:

1. I was very poor growing up, and as an adult, we couldn’t afford food when I first got to Idaho. I never want to be poor again.

2. I want generational wealth.

3. I want to live the life I dreamed I would as a kid — which means have fun, travel, and not worry about money.

Last week, I got a call from a friend of mine asking me for investment advice. This friend is very

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