S2|E13 - News: Charlotte Metro Tragedy and Men and Money- Five Principles

First, we examine the heartbreaking tragedy in the Charlotte Metro area that has left the community in mourning and sparked important conversations about public safety and infrastructure.

Then, we shift gears to explore the complex dynamics of "Men and Money: We cover four types of men and five principles 

 

There are three types of men listening who need help to become the fourth type—the ideal financial steward. Here’s who they are:

 

1.      The Spender: You earn enough money, spend it, and that’s all that matters. You cover your bills each month, and as long as the paycheck clears, you’re content.

2.      The Struggler: You’re always behind, unable to make enough no matter how hard you try. You’re consistently late on payments and feel trapped in a cycle of debt with no way out.

3.      The Saver: You understand the importance of saving and paying bills while aiming for homeownership. However, every time you build savings, an emergency wipes them out.

 

• The Fourth Man: The Ideal Steward

The fourth man combines the best traits of the above while avoiding their pitfalls:

·         Unlike #1 (The Spender), he enjoys the fruits of his labor but also prepares for the future.

·         Unlike #2 (The Struggler), he avoids overspending and lives within his means.

·         Unlike #3 (The Saver), he saves aggressively to ensure financial resilience.

• Traits of the Fourth Man

1.      He enjoys life because he knows exactly how much he needs to earn and ensures he’s making it.

2.      He plans meticulously, tracking monthly expenses, debts, and savings goals, which allows him to give generously.

3.      He saves and invests surplus income, allowing his money to work for him.

• Key Principles to Become the Fourth Man

• Make a Budget: If you don’t know what you’re spending, you’ll never know what you need to earn. Track every dollar to gain control.

2.      Get Out of Debt: Understand the difference between good and bad debt.

a.      Good Debt: Debt that generates income, like investments with a cash flow of 5–7% above what you owe after expenses. Examples include income-generating assets (e.g., rental properties) or learning a profitable skill/trade. Caution: This can be risky, especially for business owners.

                                                              i.      Credit Cards with Rewards: Cards offering cashback or points can be “free money” if you’re disciplined and pay the balance in full each month.

b.     Bad Debt (Liabilities): Purchases you can’t afford that don’t generate income, like flashy cars, oversized mortgages, or designer clothes.

                                                              i.      Debt Repayment Plan: Create a structured plan to eliminate debt systematically.

3.      Build Quality Relationships: Surround yourself with people who model the financial habits you aspire to.

4.      Save and Invest:

a.      Emergency Fund: Save 3–6 months of living expenses (e.g., if you need $8,000/month, save $24,000–$48,000).

b.     Invest 10–15% of Income: Diversify your investments:

                                                              i.      Safe Investments: Treasury Bond ETFs, gold, or gold trusts.

                                                            ii.      Moderately Risky: High-dividend ETFs, real estate ETFs.

                                                          iii.      Risky: Bitcoin, AI-related investments.

5.      Practice Generosity: Giving is a blessing. The joy of giving often surpasses receiving, enriching both your life and others’.

Investment Philosophy: Your conscience and savings goals should guide your strategy. Recommended reads: The Faithful Steward by Roy Carlson, The Treasure Principle by Randy Alcorn, and Dave Ramsey’s budgeting resources.