Mel Abraham is a CPA, entrepreneur, money mentor, and Author of the #1 Bestseller, The Entrepreneur’s Solution: The Modern Millionaire’s Path to More Profit, Fans & Freedom. Mel’s upcoming book, Build Your Money Machine: How to Get Your Money to Work Harder For You Than You Did For it! lays down a comprehensive road map to financial freedom, from establishing your vision to creating a self-sustaining money machine.

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3 Value Bombs

1) You do not become successful. You are successful; success is in the process, not the destination.

2) To achieve financial freedom, you must establish a second machine, the money machine.

3) Claim your financial freedom; it is your birthright. Most of what you know about money is learned by observation, not formal education. Legacy is not just leaving things behind; it is leaving something meaningful within others.

Show Notes

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

Today’s Audio MASTERCLASS: Claiming Financial Freedom…It’s Your Birthright! With Mel Abraham

[1:38] – Mel shares something he believes about becoming successful that most people disagree with.

He believes that you do not become successful. You are successful; success is in the process, not the destination.

[2:24] – What is your most powerful wealth-building tool as an individual?

If you are an entrepreneur, it is about building your business; if not, it is about generating income.
It is the tool you use to construct your goals, like a shovel. Regardless of age or life stage, reaching your destination is possible by adhering to fundamental principles.
It might not be effortless, but the process is straightforward.

[3:28] – What is your single most significant point of failure in building wealth?

It significantly impacts entrepreneurs and those who take risks and believe that your business or income is the foundation of wealth.
It acts as the wealth generator and creator if managed correctly.
- From a young age, you are conditioned to pursue good jobs or build successful businesses, focusing on earning continuously – that is the earnings machine. However, this machine was never designed to provide freedom, wealth, or control.
- To achieve financial freedom, you must establish a second machine, the money machine.
It is your actions with your earnings that determine success. Merely relying on income without -strategic financial management leads to a failure to attain the deserved financial freedom.

[4:48] – What is your single most significant point of failure in building wealth?

Balancing the joys of parenthood with his dream of building a business, he faced a challenge when he herniated three discs in his back while running a martial arts studio.
This injury took him out of his business, leaving him with a single source of income and no way to sustain himself.
It was then that he realized the need to approach money and business differently, avoiding dependence on a single income stream.
This experience prompted him to explore new ways to build financial stability for his family.

[7:03] – How should you use your wealth for your family? When you’ve worked hard to build substantial wealth, how does it pass on to your children and grandchildren, if it does at all?

Transitioning wealth can happen, but it is not automatic.
His core belief is that you should never transfer assets without transferring skill sets.
He started teaching his son about money, generosity, investing, and cash management when he was 10. They had open conversations to instill principles and values in him so he could responsibly handle the wealth he was building.
It is not just about blood ties but about ensuring the next generation is capable and responsible.
Starting early is essential, focusing on transferring skills, not just assets.
Mel has seen cases where families lost significant wealth because the heirs lacked the necessary skills and guidance.
For example, a family he worked with lost $175 million in five years due to poor management and bad advice after their parents passed away.
The statistics show that 79% of millionaires are self-made, not inherited.
Another study by Money Magazine found that the second generation loses 70% of their wealth.

[12:35] – A timeout to thank our sponsors!

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[15:46] – Most believe accumulating wealth comes from making a lot of money, but that is not the proper key. What is the actual solution?

In a study of 10,000 millionaires, most did not earn over an average of $150,000 throughout their careers.
It shows that the amount of money earned is not the critical factor.
Many famous people, like Nicholas Cage and Mike Tyson, made a lot but broke.
It is about how you manage and use the money that matters.
- For instance, when Mel’s granddaughter was born, he gave her $25 a week, saving $100 for the first 20 years of her life.

- Though she is just two, they teach her essential skills.

- If she manages it wisely, that small amount will grow to over a million dollars by the time she retires, all for a cup of coffee a day.

[17:03] – Mel talks about the four stages in ‘The Affluence Journey.’

To achieve financial success, you must pass through four stages or gateways.

1. Stability – Creating enough wealth to cover basic needs such as housing, clothing, food, and healthcare. Achieving financial stability ensures survival and the ability to meet necessities.
2. Financial security – Accumulating sufficient assets that generate income to maintain your current lifestyle. This stage provides a work-optional setting, allowing for a life lived by choice rather than necessity.
3. Financial independence – Replacing 100% of your income with a machine duplicating your efforts without active involvement. Financial independence means covering bills and enjoying additional income, providing security and ease.
4. Financial freedom – Going beyond maintaining the current lifestyle and working towards your vision for your life. Financial freedom involves ensuring your income supports your desired lifestyle, movements, missions, and dreams for the future. It transcends merely sustaining your present way of living.

[20:32] – What four things must you control to change your financial future?

Income – The money that you earn. Increasing your earnings is crucial for building wealth.
Saving/Investing Rate: The percentage of your income you save or invest for the future. This rate significantly impacts wealth creation and financial freedom, often more than income, especially in your younger years.
Time – The duration you have been investing. Starting early is crucial; the sooner you begin, the closer you get to financial freedom. Waiting on the sidelines won’t help.
Returns on Investment – The gains or losses from your investment choices. Understanding and managing the risk in your investment portfolio, whether in index funds, real estate, or crypto, impacts your overall returns.

Focus on what you can control: your income, your saving/investing rate, and the time you spend in the wealth creation game.
Avoid unnecessary complications and take action now rather than delaying.

[23:39] – Mel gives takeaway.

Claim your financial freedom; it is your birthright. Most of what you know about money is learned by observation, not formal education. Legacy is not just leaving things behind; it is leaving something meaningful within others.
To achieve this, take control of your moments by having the wealth to make choices. Choices enable you to shape meaningful, valuable, and impactful moments, creating a lasting legacy.

[25:07] – Mel gives his call to action.

Building Your Money Machine – Get the Most Transformational Money & Wealth Book of Our Time by Money Mentor Mel Abraham, CPA.

[26:29] – Thank you to our Sponsors!

HubSpot: With HubSpot’s customer platform you can spend less time switching between systems, and more time on growing your business. Visit HubSpot.com to learn how HubSpot’s customer platform can help you grow your business!
Yahoo Finance: Yahoo Finance makes it easy to get financial news, data, and insights fast. For comprehensive financial news and analysis, visit the brand behind every great investor, YahooFinance.com!

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!