The NUMBER ONE Reason People Don't Save Money // Andy Elliott

Summary

Podcast Summary: "The NUMBER ONE Reason People Don't Save Money" with Andy Elliott and Josh Rose

Episode: The NUMBER ONE Reason People Don't Save Money
Host: Andy Elliott
Guest: Josh Rose
Release Date: February 10, 2025

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Introduction to the Episode

In this insightful episode of Andy Elliott's Elite Mindset Motivation and Sales Training, host Andy Elliott delves into the crucial topic of personal finance, specifically focusing on the primary obstacle that prevents individuals from saving money. Joining him is Josh Rose, a specialist in Infinite Banking and the CEO of Factum Financial.

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Understanding Infinite Banking

Josh Rose begins by explaining his expertise in Infinite Banking, a strategy that utilizes whole life insurance policies to create a personal banking system. This method allows individuals to retain more of their income by controlling their financial environment.

Josh Rose [01:34]: "I teach infinite banking. So what is that? It's... I sell whole life insurance. I teach people how to build their own banking system so they can keep more of the money that's flowing through their hands every day."

He further simplifies the concept using an analogy from his colleague Becca Wilhite's children's book, "Beaver Bankers." He compares an individual's cash flow to a river and a whole life insurance policy to a dam that regulates and collects a portion of that money, ensuring it grows over time.

Josh Rose [02:41]: "A whole life policy collects the money that's already flowing through your life, keeps it forever, earning you dividends and interest the rest of your life."

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The Muscle Behind Saving: Parkinson's Law

The core discussion centers around Parkinson's Law, identified as the number one reason people struggle to save money.

Josh Rose [03:34]: "Number one reason people can't save money is Parkinson's Law."

Parkinson's Law posits that "work expands to the time allotted." In financial terms, this means that as an individual's income increases, their expenses tend to rise proportionally, often negating any potential savings.

Josh Rose [03:38]: "Financially, no matter how successful you are, how much money you're making, Parkinson's law is when your income starts to increase, your expenses increase to the level of your income."

To combat this, Josh emphasizes the necessity of discipline and behavioral control. Without actively managing expenses and saving behaviors, increased income merely leads to increased spending.

Josh Rose [04:25]: "To beat that, when your expense or your income is increasing, beating Parkinson is fighting those expenses, rising with it."

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Practical Savings Strategies

Josh introduces a straightforward saving guideline based on age:

Josh Rose [02:50]: "A good baseline is your age times 10. That's a good monthly place to start saving."

For instance:

• 25 years old: Save $250 monthly.
• 45 years old: Save $450 monthly.

This method adapts to an individual's lifespan, encouraging higher savings as one ages to ensure sufficient growth and security.

Josh Rose [03:03]: "Start saving. In a whole life policy, we can design it based on your need for cash today and desire to grow in the future."

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Overcoming Behavioral Barriers

The conversation shifts to the psychological aspects hindering financial discipline. Josh highlights the lack of financial education as a significant barrier.

Josh Rose [08:33]: "And that is strictly due to education."

He advocates for making saving money appealing and integrating it seamlessly into one's financial routine to counteract the innate tendency to overspend.

Josh Rose [09:35]: "If I can educate you about the environments to save your money, you're going to make the best decision for your life."

Andy reinforces the importance of financial education, comparing the misunderstanding of compound growth to missing out on exponential financial gains.

Andy Elliott [08:25]: "The penny a day doubled every day for 31 days is 11 million. But if most people would take a million cash today... they miss out on the 11 million just because they wouldn't be patient enough."

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Long-Term Vision and Multigenerational Impact

Josh emphasizes the significance of long-term planning and the potential multigenerational benefits of disciplined saving.

Josh Rose [11:02]: "I'm big on long term thinkers. I love to think multi generationally even."

By implementing robust saving strategies, individuals not only secure their financial future but also create a lasting legacy for subsequent generations.

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Key Takeaways

1. Parkinson's Law is the primary barrier to saving money, causing expenses to rise with income.
2. Infinite Banking through whole life insurance is an effective strategy to retain and grow personal income.
3. Implementing a savings rule based on age can provide a structured approach to financial discipline.
4. Financial education is crucial in overcoming behavioral tendencies to overspend.
5. Long-term and multigenerational financial planning can lead to sustained wealth and security.

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Notable Quotes

• Josh Rose [03:38]: "Financially, no matter how successful you are, how much money you're making, Parkinson's law is when your income starts to increase, your expenses increase to the level of your income."
• Andy Elliott [08:25]: "The penny a day doubled every day for 31 days is 11 million. But if most people would take a million cash today... they miss out on the 11 million just because they wouldn't be patient enough."
• Josh Rose [11:02]: "I'm big on long term thinkers. I love to think multigenerationally even."

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Conclusion

This episode offers a profound exploration of the psychological and structural barriers to saving money. Through the expertise of Josh Rose, listeners gain actionable insights into overcoming these challenges via disciplined saving strategies and informed financial planning. By addressing Parkinson's Law and promoting Infinite Banking, Andy Elliott and Josh Rose provide valuable guidance for individuals striving to achieve financial stability and long-term prosperity.

Transcript

[Andy Elliot]

Hey, guys. What's going on? Andy Elliot. This is going to be a cool video. This video is the number one reason why you can't save money. Now, I know this. Every single person in the world wants to save money. I know it. Because you need money. Cash is king. You got to have money. And a lot of the people live check to check their whole life. They work 30 years, they work even 40 years. So if you're watching this and you're young, like, you don't want to wait until it's too late to wake up. Like, you want to know now. And then if you're older, you need to be like, okay, I need to pay attention. So I brought Josh on. Number one, Josh is extremely smart. Josh helps me with a lot of things. Josh is a really good family man. He's 40 years old, right? Great, great shape. Yeah, Last week, great shape, dad, super cool, very smart. And I said, josh. And by the way, he's a good buddy of mine. I said, number one thing that he helps people with is money. And I said, what's the number one reason people can't save money? And he gave me a really good answer. And I said, you know what, we're going to drop a quick podcast, and I want to help as many people as I can. And Josh is a good friend of mine. Anybody's a good friend of mine now can be a good friend of yours. So now he can be a resource to you. There will be a link down below in the description box in which you can click on that link, enter in your information, and Josh will reach out to you himself in the next 24 hours. Okay, so, Josh, glad you're here. Love you, bro. Number one, tell us like real quick what you do and then let's rip into the number one reason people can't save money.

[Josh Rose]

Yeah, I teach infinite banking. So what is that? It's. I sell whole life insurance. I teach people how to build their own banking system so they can keep more of the money that's flowing through their hands every day.

[Andy Elliot]

Let's go into that. Tell if for anybody watching this that they don't understand what that means. Give them just the 10,000 foot view of level one basics.

[Josh Rose]

You know what, I'm going to give a shout out to one of my colleagues, Becca Wilhite. She wrote a children's book called Beaver Bankers. Simplest visual analogy. Our cash flow or our paychecks, however you earn money, is a river flowing through our life. A whole life policy is a dam that stops that river. And just Collects a little bit of that money. So a beaver creates its own environment where it thrives the most. A whole life policy collects the money that's already flowing through your life, keeps it forever, earning you dividends and interest the rest of your life. So if you had a guaranteed environment that was guaranteed to grow and collected more money that's already flowing through your hands, away from you, and you can control that environment, that's going to change your life for the things that you care about the most.

[Andy Elliot]

So let's explain that simply. Somebody's watching this. They would put a couple hundred bucks a month away or something. Is that right?

[Josh Rose]

Yeah.

[Andy Elliot]

And then that would be used as, know, for, for most people, I mean, they, they, they set it up. Is that right?

[Josh Rose]

Yeah. A good, good baseline is your age times 10. That's a good monthly place to start saving.

[Andy Elliot]

Cool. So if I'm 25 years old.

[Josh Rose]

Yeah. 250 bucks a month. Start saving. In a whole life policy. We can design it based on your need for cash today and desire to grow in the future.

[Andy Elliot]

That's simple. That's easy. I love it. That's pretty easy. And then if you're 45 years old, because obviously you're older and you're going to live less time, you would go up to like 450 bucks per se. But because you'd want to grow and put that to a place because you have less life to live. Is that right?

[Josh Rose]

That's correct.

[Andy Elliot]

Yeah. It's a good idea. Okay. All right, cool. So let's talk about the number one reason people can't save money.

[Josh Rose]

Number one reason people can't save money is Parkinson's Law. What is Parkinson's law?

[Andy Elliot]

Parkinson's law.

[Josh Rose]

Parkinson's Law. There's a book out there you can read. Work expands to the time allotted. So we were all in school at one point, had an assignment due on the 20th. We started the night of the 19th. That's Parkinson's Law. Financially, no matter how successful you are, how much money you're making, Parkinson's law is when your income starts to increase, your expenses increase to the level of your income. That's Parkinson's Law. So to beat that when your expense or your income is increasing, beating Parkinson is fighting those expenses, rising with it. Most people can't do that because they don't. They can't overcome Parkinson law or rule their own behavior, discipline themselves. So if you want to be disciplined with your money, you have to beat Parkinson's law. And most people aren't doing that.

[Andy Elliot]

I love that you said, rule of beating your own money, your own, your own behavior.

[Josh Rose]

It's discipline with money. Most people are passive or just not thinking because we're taught to chase rates of return. We're taught to separate ourselves from the control of our money. And so we don't even think it's worthwhile to save. One of my missions is to make saving sexy. And there's one, beating Parkinson. And two, that considering maybe there's better environments out there to save and store my money like the big banks do.

[Andy Elliot]

Hey, guys, Sorry to interrupt the video as you're hearing Josh talk about how to save money, how people can get educated with money. I think the number one reason why people don't become financially wealthy is because they don't understand money very well. If you want to get close and get connected with Josh, here's the easiest way to do it. There's going to be a link below down in the description box. Just click on it, enter your information in. And Josh himself, not his team, not someone else, but Josh will reach out to you personally in the next 24 hours. So if you want to get connected with Josh, tell him what your situation is. He'll help you from there. I love you guys. I appreciate it. Hit Josh up. Let's get back to the video. So basically, if somebody reached out to you and they said, I make X amount of money a month, big or small. And by the way, everybody can do this, right? I mean, there's no. There's no big or small amount. Like the key is to start.

[Josh Rose]

Exactly.

[Andy Elliot]

Yeah. And then, you know, as. As you're making a little more money, you can always increase how much money you're putting in. But putting in something, the compound of that ends up being pretty crazy. Right?

[Josh Rose]

It's the only. It's the only financial environment that you can legally use the word guaranteed. So that's powerful. You can't use that word legally in any other financial environment. It's guaranteed to grow every single month. You're the only one in control. IRS doesn't know about it. Government doesn't know about it. Your wife doesn't know about it unless you tell her.

[Andy Elliot]

It's amazing, man. I love it. What would you tell yourself if you were 25 years old now, knowing what you know now at 40 and seeing all the situations you see every day.

[Josh Rose]

Have a big vision. Get around people that support it and don't turn back. You know, know your values. I'm huge on value alignment. That's what brought me here.

[Andy Elliot]

Yeah.

[Josh Rose]

You know, God, Brought me here because I was focused on values and he takes care of the rest. If you're disciplined with, you know what, you know, he's put on your heart.

[Andy Elliot]

That's amazing. I love it. Do you, do you think that no matter how much money somebody makes, big or small, they should, they should reach out and obviously set up something. Even if it's 50 bucks, you start somewhere and you talked about, you know, as people make more money, their expenses go up. That's Parkinson's law. If they create a natural buffer where they're paying that out, but it's to their self as an investment, then they're putting in expenses that are a positive expense.

[Josh Rose]

100.

[Andy Elliot]

You know what I'm saying? Because like you're tricking yourself, the money's going to go somewhere, you're gonna end up throwing it away in a mall, a gas station somewhere. So the reason why you put together these things and you have a guy like you in your back pocket is so that you end up actually not ended up accidentally wasting the money. Look, I know people that make money for a couple years and they end up wasting a lot of the money that they made. And then the three year ride is over and they're like, damn, man, I didn't save nothing.

[Josh Rose]

Exactly.

[Andy Elliot]

And that's why you almost have to force. You said that you have to beat human behavior. You have to set stuff up like this if you care about setting yourself up financially, which really is like education of money. And nobody's educated on money anymore. Some people are good at making it, but we don't understand. It's like the penny a day doubled every day for 31 days is 11 million. But if most people would take a million cash today, if I hand it out, you know, do you want a penny a day? I'll double it every day for 31 days. That's 11 million. Or would you take a million cash? Most people would snag the million cash today and miss out on the 11 million just because they wouldn't be patient enough for 31 days to watch it double.

[Josh Rose]

Right. And that is strictly due to education.

[Andy Elliot]

Yeah.

[Josh Rose]

You know, speed is not always, you know, speed wins for sure, but speed is not always the number one priority. It's education.

[Andy Elliot]

No, some things take money. I mean, being patient with money isn't a bad thing.

[Josh Rose]

Yep.

[Andy Elliot]

You know, I mean, be quick to make it, but on the return side of it, the goal is, is to put it away so you don't spend it. I mean, a lot of people are just addicted to spending it right. You know, and really you're saying you need to become the reason why people don't save because they're not addicted to saving it. You said you want to make saving sexy. Yeah.

[Josh Rose]

And there's. And it's. You're right. The education is the key part. That's the foundational part. And that's what we do at our company. We educate people. I don't want to tell anybody what to do. My goal is to educate the heck out of them so that they know what they want to do with their money. Because you know what's best for your money. And if I can educate you about the environments to save your money, you're going to make the best decision for your life. So if I just push out education, you're going to know if you know what's going on, you're going to know what to do.

[Andy Elliot]

Yeah, dude. And lastly, we'll finish on this because I wanted to make this kind of a quicker video and to share you with everybody that I know so people can reach out to you and set something up. When I spend money, my endorphins fire, chemicals release. I go spend a thousand bucks, the money's gone, chemicals gone. I don't have any money saved. I have no dependable success. That money's gone. I have to go make it again, which creates more stress. I don't have any peace in my life. If you can just find the endorphin rush in saving the money. And that's the reason why you set it up so that it just naturally comes out so you don't even have to think it just handles it. Right. But imagine five years from now, 10 years, 20 years from now, if you get your endorphins rushed by spending all your money every time you get it, you're going to look up in 20 years and you're going to be sitting in hell and you're going to be like, damn, man, I'm screwed. Where? The other way. In 5, 10, 20 years from now, you'll sit there and your endorphins will fire and you'll be like, damn, dude, I'm set up. All that discipline, which really the reason why you set it up is so you don't have to think about the discipline. Right. It just removes.

[Josh Rose]

Yeah. You talk all the time about putting a financial fortress around your family. Yes.

[Andy Elliot]

Oh my gosh.

[Josh Rose]

I'm big on long term thinkers. I love to think multi generationally even. So I love working with people like that because if you can just change One thing in your life where you're saving your money. Not only can you change your life, you can change multiple generations behind you on a guaranteed basis in a guaranteed environment.

[Andy Elliot]

Facts. I love it, man. What is the name of the company you work for?

[Josh Rose]

I work with Factum Financial.

[Andy Elliot]

Okay. I love it. And you're out of Kansas City?

[Josh Rose]

Yep, I live in Kansas City. Factum's based in Mesa, Arizona, so I'm out here all the time. Yeah, so I love coming to see the Elliott Group.

[Andy Elliot]

Yeah. Yeah. Guys, listen, I want to tell you guys something. This is super important, man. If you've ever listened to me on any video, you got to find someone to help you put a financial fence around your family. Kind of what we talked about when you're young, okay? Sometimes you just want to make money. And no one talks to us about money, education. I think you guys should all reach out to him and make a plan to be a little one. Doesn't matter. Could be a big one. You can make a big plan. You know, I remember when I was younger, I. I was sitting there and a lot of guys in the Office were putting $100 away a month, and I was putting 2,500amonth away. You know, I just. I just. I wanted a bigger plan than everyone else. I wanted to be more disciplined. I wanted to push myself harder. I knew I could make more. But I think a plan in general, big or small, doesn't matter as long as there's a plan. And I think once you put a plan in, eventually, over time, you could make it as big as you want and you start to understand it a little more, and then, plus, they build a good relationship with you. He's going to be your resource for anything that you guys need. If you want to know why people don't save money, we've talked about it. You just don't want to be one of those people. You know what I'm saying? When people say, you know, everybody always goes, you know, there's a lot of people. And I'm like, well, I'm not a lot of people. So, like, as long as I stay out of that category, I'm good. And I know you guys are the 1 percenters, and that's the reason why you watch and you're always figuring out, like, how to get an edge. This is something I hadn't really ever talked about. Saving money is important. Cash is important, and that's what he sells, and he's really good at it. And he. He gets paid to help set people's life up. Okay, so you want to start now? If you haven't started at this point, who cares? Okay, go down to the description box, guys. There's going to be a little link. Fill it out. Joshua himself will reach out to you in the next 24 hours. You guys can have a conversation with him. And then if it feels right, rock and roll. Do it. He's an awesome Christian. He's a good man. Loves God, loves his wife, loves his kids, loves his family, Loves doing the right thing for people. You know, we were talking about, you know, a deal that he did the other day. You said you spent two years with that customer. You know, he's not trying to do anything overnight. His number one goal is to help people. Very plain and simple. And so if you're one of those people that want to have the right guy in your corner to help you save money and you want to have, again, having the right person with the right intentions, it's this guy, man. So, Joshua, I appreciate you, bro. Man, seriously. Do you have a social media account?

[Josh Rose]

Yeah, I'm mostly on Facebook, but I'm.

[Andy Elliot]

Okay if I'm on Facebook. Where do I find you?

[Josh Rose]

It's just my name, Joshua Rose. I know there's a bunch of them out there.

[Andy Elliot]

I got the Joshua Rose. Kansas City.

[Josh Rose]

Yep, I'm in Kansas City. My. My backdrop is Becoming youg Own Banker by Nelson Nash. That's the book. So I got that in my backdrop.

[Andy Elliot]

I love it. Well, good. Plus, listen, if you want to get in touch with him, I mean, I just want you to know where he's at on social media. Just very simple. Go down to the description box in this YouTube video. Click on the link, fill out your information. Josh will reach out to the next 24 hours. Just have a conversation with him, man. Josh, love you, bro. Appreciate it, man. Brothers for life. Love you guys. Have a blessed day. Let's save some money. Let's go. Hey, guys. Looks like you made it to the end of the video. You're the true 0001 percenters. Look, I know 1 percenters that can make it halfway through the video, but making it all the way through, you guys are the best. Now here's what I'd like to do. Number one, I want to get closer to you. The fact that you made it all the way through the video, you're like, man, dude, I want to roll with this guy, okay? So I need to connect with you down below. There's a description box on this YouTube video. There's a link. It says coach with me one on one. Okay. If you'll go and you'll enter your information, I'll reach out to you in the next 24 hours. You can tell me what you need, help with, what your goals are, and we will crush it together. I would love to help you guys go to the next level in life. You can tell I'm changing my life really fast, and I know that you guys want the same thing. I'd love to go with you on that journey. So right now, if you'd like to partner with me, team with me, if you want me to help coach you and push you, everybody needs a coach, a higher level of accountability to go to the next level. Go to the description box below. Click on the link, fill out your information. I'll talk to you in the next 24 hours. Let's kill it.