Starting From Scratch: Money Moves and Creating Wealth

Summary

Earn Your Leisure Podcast: Episode Summary Title: Starting From Scratch: Money Moves and Creating Wealth
Release Date: February 22, 2025
Hosts: EYL Network (Rashad Bilal and Troy Millings)

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Introduction

In the "Starting From Scratch: Money Moves and Creating Wealth" episode of the Earn Your Leisure Podcast, hosts Rashad Bilal and Troy Millings delve deep into the essential financial strategies for building wealth from the ground up. The episode features insightful discussions between a Financial Advisor and an Entrepreneur, offering practical advice for listeners aiming to create and sustain financial success.

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Top Money Moves for Starting from Scratch

1. Building a Service-Based Business

At the outset, the Financial Advisor emphasizes the importance of establishing a low-overhead, service-based business as the first step toward financial independence.

Financial Advisor [02:44]: "If you have no money, your priority is how you're going to generate money first. Starting a service-based business is a practical approach because there's always an opportunity to earn commissions."

Drawing from personal experience in the financial services industry, the advisor highlights how selling products like car or life insurance can provide a steady income stream without significant initial investment.

2. Networking and Leveraging Contacts

A critical component of starting from scratch is leveraging one's personal network to generate business opportunities.

Financial Advisor [03:20]: "Project 100 is a strategy where you list 100 people you know—from friends to colleagues—and reach out to each one to inform them about your business and seek referrals."

This approach not only helps in building a customer base but also fosters trust and credibility through personal connections.

3. Reinvesting Profits and Frugal Living

Reinvesting earnings back into the business and maintaining a low-cost lifestyle are pivotal for sustainable growth.

Financial Advisor [04:06]: "Reinvesting your profits allows your business to grow organically. Additionally, living in a low-cost environment minimizes expenses, enabling more funds to be allocated toward investment and business expansion."

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Long-Term Investments and Wealth Creation

The Entrepreneur expands on the Financial Advisor's points by outlining a three-step strategy for long-term wealth accumulation:

1. Start a Business: As previously discussed, initiating a business lays the foundation for financial growth.
2. Allocate Funds to Long-Term Investments: Setting aside 50-60% of earnings into stocks or other long-term investment vehicles ensures that wealth grows over time.
3. Trade Futures: Engaging in futures trading can provide additional income streams and investment diversification.

Entrepreneur [05:20]: "Starting your own business offers the highest returns that can outpace the market. Once established, directing a significant portion of your earnings into long-term stocks sets you up for sustained wealth."

Additionally, the Entrepreneur underscores the importance of timing, execution, and adaptability in maintaining and growing wealth.

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Importance of Speed, Execution, and Timing

Both speakers agree that swift action and effective execution are crucial in the realm of investments and business growth.

Entrepreneur [08:25]: "Speed matters. In a good investment, the faster you can lock something down, the better your chances of maximizing returns."

The conversation also touches upon the impact of timing and market fit, highlighting that success often depends on seizing opportunities promptly before competitors do.

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Multiple Streams of Income

Creating diverse income streams is presented as a fundamental strategy for financial resilience and growth.

Chime Representative [08:50]: "Mine would be like, find a job that you can create multiple streams from. For example, while working as a hall monitor, I also tutored, coached, and ran after-school programs—all contributing to my income."

By developing various sources of income, individuals can mitigate risks and enhance their financial stability.

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Personal Stories and Anecdotes

Throughout the episode, personal anecdotes illustrate the practical application of the discussed strategies. For instance, the Financial Advisor recounts his experience balancing multiple roles to build his income, demonstrating the effectiveness of creating multiple income streams.

Financial Advisor [08:50]: "While working as a hall monitor, I was also tutoring and coaching. These additional roles allowed me to invest in my future and eventually start my own business."

Such stories provide relatable examples for listeners, reinforcing the episode's key messages.

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Conclusions and Key Takeaways

The episode concludes with actionable insights for listeners aiming to build wealth from scratch:

1. Initiate a Service-Based Business: Focus on low-overhead business models that generate immediate income.
2. Leverage Your Network: Utilize personal connections to expand your customer base and seek referrals.
3. Reinvest and Live Frugally: Allocate profits back into the business and maintain a cost-effective lifestyle to maximize investment potential.
4. Diversify Income Streams: Develop multiple sources of income to enhance financial resilience.
5. Prioritize Speed and Execution: Act swiftly on opportunities and execute strategies effectively to stay ahead in the market.

By following these strategies, individuals can create a robust foundation for financial growth and long-term wealth.

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Notable Quotes

• Financial Advisor [02:44]: "If you have no money, your priority is how you're going to generate money first."
• Entrepreneur [05:20]: "Starting your own business offers the highest returns that can outpace the market."
• Entrepreneur [08:25]: "Speed matters. In a good investment, the faster you can lock something down, the better your chances of maximizing returns."
• Chime Representative [08:50]: "Find a job that you can create multiple streams from."

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Final Thoughts

"Starting From Scratch: Money Moves and Creating Wealth" provides a comprehensive roadmap for individuals beginning their financial journey. Through practical advice, personal experiences, and strategic insights, Rashad Bilal and Troy Millings equip listeners with the tools necessary to build and sustain wealth effectively.

Transcript

[Chime Representative]

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[Chime Representative]

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[Verizon Representative]

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[Chime Representative]

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[Financial Advisor]

Oh.

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[Financial Advisor]

To restart today from scratch, knowing everything you know now, what would be the first three money moves? So for me, I'll answer this question first.

[Chime Representative]

Yeah, yeah.

[Financial Advisor]

For me personally, I wouldn't, I don't. You starting from scratch investing is not a top priority for me not to say that that's not something that you know. But I feel like if you have no money, your priority, how you gonna invest money if you don't have money? Starting from scratch. I would figure out a low overhead service based business. I'm just speaking from personal experience. I can only give you my personal experience. So like when I was, when I was in the financial services industry selling insurance, there's a lot of different stuff that you could do like this, like car insurance, life insurance, different type of, you know, service based industry because I feel like there's always an opportunity to make money on commissions. And if I was dead broke, I would call my friends now this is important. I wouldn't call my friends to ask them for money. I would call my friends to tell them what I'm doing. So when I started in financial services, I used to have a pro, it's called Project 100 where you have, you list 100 people that you know everybody, Your friend, your friend's parents, your kid, you went to college with somebody, you play basketball with everybody. This is your network of people. Right. So I will reach out to every single person that I know and, and tell them what I'm doing and try to actually sell them products like I said. I mean I can only speak for personal experience what I actually did in real life.

[Entrepreneur]

Yeah.

[Financial Advisor]

And then from there I would hone in on my referrals and get referred to those people that they know all while reinvesting the profits. Living in as low cost environment as possible. If living with your parents is option and that's, that's a good option if whatever, renting a room, whatever you gotta do, not spending money on overhead, re reinvesting the money. Social media would come, but I would do, I will focus on social media afterwards. But I feel that the business aspect is the most important aspect first because you have to generate money to actually get into the groove of actually being able to invest. And a lot of people like well what kind of business should I start? Like I said, there's always room for a service based business. There's always going to be somebody that's going to have to sell you car insurance. There's always going to be somebody that's going to have to sell life insurance. There's always going to be somebody that's, you know, in that type of vein, health insurance, whatever it is, there's always money. It's always money to be made in a very short period of time. You don't have to go to college for these type of situations. And that's what I would do. So. But what would you do?

[Entrepreneur]

Well, same as you, I, I can only talk from personal experience. First you have to build a business because the highest returns that you're going to get that are going to outpace the market for sure is by starting your own business. After that you got to take, you got to pick a number, 50, 60, put it into long term so that takes care of your future number. So important caveat is that too. And I know people hate when I say this, you have to stay your ass inside doors. Costs a lot of money to be outside and people don't want to do it. And I get it because you are thinking about now. But I look back at all those seasons that I missed of going to games. Oh I get that. Have a ball and do it the hell I want to now. And then third, you got to hit that features market. You got to pick a target that if your life is on the line, this is the target that I'm going to use to be able to hit. And red Panda, you know what that target is. But the three for me is start a business. Two puts 50 or 60 of the money into stocks long term. Third, trade futures and if I can add a fourth, find a way to help other people first and get them a result so they can then come back and then pay me. The reason why I started with the yes and Chad and started on social media back in 2016, 2017, just giving away for free. If I help you make money first, I'll be able to call that favor back upon you later. So I wouldn't do anything different. But it's really important too. The other part of this question is to never get back to the point where you're starting from scratch. Timing is important in some of this like intel. Never thought they would lose that lead. And because they didn't keep reinvesting into the business and keep innovating, you now you have five other players that are light years ahead of you. Just because you are able to do it one time does not mean that you are able to do it again. Sometimes timing, luck and market fit is really important. When we first started doing the show, nobody black was talking about invest. Now it's boy soiree. Cool. That's why what Mav is doing is so smart. Mav just gonna tell you a thing, run the Billy up, then I'll tell you about it. Once I'm at 8 billion, the book come out. That's my new move for 25 through 35. The next couple plays y'all see publicly. Decoys never tell you the real play. Y'all gonna see me snowboarding. Cool. Keyshawn White on this. On the hills. Cool. Y'all never tell you the real place. Sorry. You it up. Sorry, granny.

[Chime Representative]

Damn.

[Financial Advisor]

We gotta talk. We gotta talk about the snowboarding play too. Your comments was going crazy.

[Chime Representative]

They wasn't happy about that. A little surprised with you.

[Financial Advisor]

A little surprised.

[Chime Representative]

I. I'll go with the.

[Entrepreneur]

Surprised at me.

[Chime Representative]

Yeah, I'm happy. I was happy for you, my brother. Shout out to Edwin. Me and Edwin was both happy. Shout out to Edward. That's. I. I'll take the.

[Entrepreneur]

The on top of that, then speed matters and execution. That's all we talk about. A hero on Blackout.

[Financial Advisor]

But speed matter. See? Mad. What.

[Entrepreneur]

What do you mean in a good investment?

[Financial Advisor]

You mean like to lock something down? What do you mean? What you mean?

[Entrepreneur]

Yeah, that's crazy.

[Financial Advisor]

No, I'm. Jackson. I'm just.

[Entrepreneur]

We'll go further in detail.

[Chime Representative]

Right? If we tell the personal stories, like, yeah, get. Mine would be like, find a job that you can create multiple streams from. And so like, yeah, everybody hears a story. Like, yo, I was a phys ed teacher, but before I was ever that, I was a whole monitor, bro. Like, I was the guy sitting in the hallway reading books, telling kids to go to class, checking for hall passes. While I was doing that was a tutor, right? I'm trying to find another stream. While I was doing that, I was coaching, right? While I was doing that, I was running after school programs. While I was doing that, I was running summer programs. And so I had like different streams of income. So like, not only was I getting paid for to. For doing, like, I. It wasn't even much, but to be working in a school because I just wanted to have experience working in schools. I created multiple streams from. From just that. Which allowed me to put some money into investing. Obviously, as my career changed and I became a teacher then obviously, I mean, I still had those streams, but it was like, all right, now there's more money to invest then creating a business because I had enough to say, all right, well I have this career. I can go venture off in the world of entrepreneurism. That helped as well. But like, figure out how you're going to create multiple streams from where you're at, right?

[Entrepreneur]

Sure.

[Chime Representative]

And it could be, like I said, hall monitor. No joke and no disrespect to anybody. That's a whole monitor. I was that you can create multiple streams.

[Entrepreneur]

Yeah.

[Verizon Representative]

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[Chime Representative]

Perfect.

[Verizon Representative]

Or for your broken phone to glitch at the worst possible time.

[Chime Representative]

Hey, can I get your number?

[Financial Advisor]

Oh.

[Verizon Representative]

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