David Richter wrote Profit First for Real Estate Investing and Owner of Simple CFO. Helping owners keep more of what they make and not feel broke.

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Guest Resource

Simple CFO – Check out David’s website and get a copy of his book Profit First.

3 Value Bombs

1) If you know how to make money, you have to know how to keep it, how to set it up and how to win it.

2) The 3 most important numbers are what you making, what you spend and what you keep at the end of the day especially in the cash perspective.

3) The big piece to win is setting those bank accounts in place. If you’re going to play the game of money, you need to have bank accounts that are helping you in that journey.

Show Notes

**Click the time stamp to jump directly to that point in the episode.

Today’s Audio MASTERCLASS: How to Make Money But Not Feel Broke

[1:18] – David shares something that he believes about becoming successful that most people disagree with.

You have to put the things in your life first and not just work in the hustle and grind. Hustle is a season and not a lifestyle. He puts his family first and his works fits in. He wants to leave earth having the people he love around him because he believes that is what drives his passion on a day to day basis.

[3:21] – David talks about what we are doing wrong and what is the right game.

Entrepreneurs think whatever industry they are in is the game they are playing.
All entrepreneurs play the game of money to fuel the things in their business but nobody really taught us how to play this game.
If you know how to make money, you have to know how to keep it, how to set it up and how to win it.

[4:41] – David talks about why we make money in our business but feel broke.

Everyone out there tells that the formula is sales minus expenses equals profit.
Making profit should be a habit everyday and not just a one time future event you are looking for.
No one teaches us how to be a good steward of money and unless you break away from the flow , you become no different from the other sea of entrepreneurs who are having money but feels broke.

[7:07] – David talks about a good first step to keep more of what you make as an owner.

There are 2 things, the mindset and the practical step.
The mindset is reversing the formula of sales minus expenses equals profit to sales minus profit equals expenses to make sure you and your company is healthy.
A for profit business has profit and you pay the expenses from there, you are filling in the first things first.
The simple system in Profit First is built on the envelope method but instead of using envelopes, you are using bank accounts and you are going to name them accordingly.
Don’t have one big black hole account where money comes in and money goes out in the ‘swirling vortex of doom’ never to be seen again.
The simple framework is the 3 most important numbers in your business. Start with a bank account where money comes in, then a bank account for the money you get to keep and pay yourself when building your business.
Name your money accounts so you can have clarity and focus on where it is.

[12:13] – A timeout to thank our sponsors!

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[14:44] – David talks about the 3 most important numbers to know as an owner.

The 3 most important numbers are what you making, what you spend and what you keep at the end of the day especially in the cash perspective.
If you don’t know this, you will be asking the wrong questions and solving the wrong problems in your business.
When you do this, you are putting more power into your hands to make better decisions and solve the right problems in your business.

[16:38] – David shares how we can set up the game of money to win win win no matter what.

The big piece to win is setting those bank accounts in place. If you’re going to play the game of money, you need to have bank accounts that are helping you in that journey.
The first step is putting the money and transferring it to your keeping account.
Another step is finding your keep number or how much money you need to feed you family, keep your business and have the lifestyle that you want.
A lot of people play the game of money but they are not playing their own game. You need to play like you are winning for you.

[20:09] – David gives a few examples and case studies.

He met his client in Mastermind who worked and real estate so hard to grow and scale his business but by the end of the year he lost $70K which he said it was better if he worked in McDonald’s. He guided him to play the game of money and he followed his advice. He found his keep number and instead of scaling up so much , he just need to have $300K/year to bring home what he needs to bring home.
The next step he did is he opened up bank account for his spending. At the end of the year he was able to go on a mini vacation from his keep account which he has never done before.
He took it to the next level, making sure he had money from different buckets and last year he was able to fill up all his profit first accounts and by June he didn’t have to do sales for the rest of the year and took a 3 week road trip with his family.
He was also able to give to a camp for kids an amount of $71K.
The money habits grow as you grow.

[24:37] – David gives his key take away.

Take action to open one other bank account so you can transfer even 1% of what you make and start to get into good money habits where you are not spending each money you make but starting to build the wealth habits of wealthy entrepreneurs and you will win the money game. Built that habit and grow into it.

[25:42] – Call to action.

Simple CFO – Check out David’s website and get a copy of his book Profit First.

[27:08] – Thank you to our Sponsors!

HubSpot: Breeze is HubSpot’s collection of AI tools that helps you turn one piece of content into a whole suite of assets. Visit HubSpot.com/marketers to learn more!
LastPass: The most accessible and easy-to-use password manager on the planet! Visit LastPass.com/fire for a free trial and get started today!

Killer Resources!

1) The Common Path to Uncommon Success: JLD’s 1st traditionally published book! Over 3000 interviews with the world’s most successful Entrepreneurs compiled into a 17-step roadmap to financial freedom and fulfillment!

2) Free Podcast Course: Learn from JLD how to create and launch your podcast!

3) Podcasters’ Paradise: The #1 podcasting community in the world!