what's going on you guys so it's been a
while since I've done a personal finance
related video and these are some of my
favorite videos to do so today we're
going to be talking about what you
should do if you are broke now I just
want to let you guys know beforehand I'm
not going to be telling you to go start
a Shopify store or go buy Bitcoin or
give you like one definitive solution
because there is no such thing as a
definitive solution for what you should
do to make more money and not be broke
definitive solution they're telling you
to go in go start doing bit connect or
go start a Shopify store maybe that'll
work for you if you put the effort in
but understand that there's no
one-size-fits-all approach to improving
your financial situation and in most
cases if someone's telling you how to
get rich then why would they be telling
you if they could just do it themselves
just keep that in mind I know a lot of
people prey on the vulnerability of
people who are in a poor financial
situation and you know I just want you
guys to keep that in the back of your
mind when you're looking at this that
there's no one-size-fits-all approach to
this of how you can improve your
financial situation now what I teach
about on my channel is investing and yes
I do have a course on investing but that
is something that does work for most
people if you look at the numbers and
what I teach people is value investing
which is one of the most successful
forms of investing it's what Warren
Buffett has followed that's made him as
rich as he is today so I wouldn't
classify myself as one of those people
selling some kind of get-rich-quick
gimmick but maybe you guys would that's
you know up to your discretion there but
I just wanted to make that disclaimer
here because a lot of people if you're
watching this video if you're in a bad
financial situation maybe you're seeing
ads about some business opportunity just
do your due diligence do your research
and understand that most of those things
are gimmicks or they don't work for most
people as it is portrayed but anyways
let's get to the video here guys and
talk about what to do with you are broke
so the best way for me to explain this
is with a visual representation okay so
if you're broke you're in one of these
two situations up top this bar in the
green is your income and the bar in the
red is your expenses so if you're broke
you probably have zero dollars of
positive cash flow
each month so what does that mean that
means that your income is equal to your
expenses now believe it or not that's
not the worst situation you could be in
because if your expenses are exceeding
your income then you're going into debt
and my guess is if you're watching this
video you are either paycheck to
paycheck or you're going into debt or
you have very little savings and you
want to figure out how to make more
money or save more money with the end
goal of improving your financial
situation so the way I see it guys
there's three things you can do that are
going to help you do this and I'm going
to tell you guys which one I recommend
in which one I really followed myself
and how I'm able to you know invest
thousands of dollars every single month
and do what it is that I do what I'm
doing is nothing spectacular anyone can
really do this if you put in the work
and you know are willing to do these
things but first of all I have what I
call the defensive approach this is very
simple if your income is equal to your
expenses and you want to generate a
positive cash flow whether it be to save
more money in your savings account for a
rainy day fund or have money to invest
or start a business the first thing you
can do is cut down on your expenses and
I call that the defensive approach why
don't I call this the defensive approach
because at that point it's kind of like
pinching a penny out of a dime squeezing
a penny out of a dime you can only go so
far with the defensive approach okay
because yes you can save money sure you
can clip coupons sure you can buy food
that's on sale but you can only go so
far I want to share a personal story
with you guys about this because when I
was 15 years old my parents had just
gotten divorced and my mom didn't have a
lot of money and I had to help her do
this I had to help her with this
defensive approach because we didn't
have a ton of money we didn't have
enough to buy all the groceries we
wanted so what we did is we sat down and
I helped her clip coupons and figure out
sales and we bought groceries that were
on sale because we were following the
defensive approach now that worked for
us okay we were able to have enough
money to you know pay rent to pay the
utilities pay the bills but what I mean
is you can only go so far with that okay
I mean you can only do so much as far as
the saving goes and the way I compare
this is I compare this approach to kind
of
breaking down and hunkering down it's
kind of like there's a problem but
you're gonna kind of avoid the problem
the main problem is your income you
don't have enough income so that's what
I want you guys to focus on but the very
first thing you should do before you
work on your income is to cut down on
those discretionary expenses maybe
you're gonna stop buying name-brand
groceries and you're going to maybe clip
coupons like I had to do with my mother
for a while and it's just you do what
you got to do that's the first thing you
guys should do but I really want you to
focus on the second thing what I call
the offensive approach or to run towards
the problem rather than shrinking down
would be to increase your income and so
what that could be for you that could be
continuing education getting a better
education that could be starting a
business that could be starting a side
hustle that could be getting a part-time
job on top of your normal job whatever
it is the best thing you can do is to
run towards the problem and fix the
problem which my guess is for most
people it is a lack of income unless you
have some kind of crazy spending problem
which may be the case I'm not sure but I
would imagine the main problem for
people is the income okay so am I going
to tell you guys how to do this
absolutely not it'll be different for
everyone some people have the ability to
work more hours at their job
some people are ambitious they're gonna
start a side business some people are
going to start a full-time business some
people are just going to get a part-time
job and maybe work during the holidays
or whatever whatever it is for you just
figure out how to make more money I've
done videos about this on my channel in
the past so I'm not going to go into
much detail about how to go about doing
this I'll do more videos about it in the
future but it's just not the place for
this in this video so that's what you
can do number 2 is to increase your
income but the very best thing you guys
can do is very simple do both of these
things this is the best approach
increase your income while decreasing
your expenses because that's going to
increase your positive cash flow that is
this dotted line here that is the
difference between your income and your
expenses that's going to be your
positive cash flow and the best way to
do that is to attack it from both sides
you have two problems here not enough
money too much expenses so make more
money cut down your expenses and you're
going to significantly increase your
positive cash flow okay I mean maybe
you're going to be watching this video
and you were hoping for me to tell
you the next million-dollar idea or how
to go out there and you know make money
for very little effort and guys if I did
that I would be very dishonest I also
realized I'm holding my marker I thought
I was going to be drawing on this but I
was holding this for absolutely no
reason so if you guys noticed that and
it seemed kind of weird it was kind of
weird to me as well but anyway guys this
is one of my favorite lectures to do
I've incorporated it into one of my
videos in the past on what to do if
you're living paycheck to paycheck and
it really helps people to visualize the
problem because a lot of people don't
even realize what it looks like to be
broke this is what it looks like to be
broke where your income is equal to your
expenses and to be going into debt that
means your expenses exceed your income
so the very first thing you guys need to
do is figure out these numbers and a lot
of people know how much money they make
they know what they make it their job
but so many people have no idea what
their expenses are so the money is just
falling out of their account because
they have no idea where it's going so
the very first thing you need to do is
identify what your expenses are figure
out what your positive or negative cash
flow is and then go how can I improve
this and like I said guys the best way
to do that is to figure out how to make
more money save more money and then what
you're going to do and that's what I did
is I took that positive cash flow and I
invested that into stocks and index
funds and as a result my money is gonna
grow into more money so the end goal
should always be to figure out how to
get out from making money in an active
way but that gets in the passive income
again that's a topic for another video
anyways guys that's all I got for this
this is what to do if you are broke I
hope you guys enjoyed it please drop a
like if you enjoyed this video if you're
new to my channel please consider
subscribing to be notified of future
uploads and as always I thank you for
taking the time to watch this video and
I'm tired of holding this damn pen I'm
just gonna drop it now thank you guys
for watching
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