Financial Strategies for Building Wealth

In investing, it's not just about numbers; it's about the mindset that can turn a market downturn into an opportunity. Taking cues from "Rich Dad Poor Dad," Shelbe Chang reveals how 'buy low, sell high' isn't just a catchphrase but a philosophy that can change the game. 

We'll explore the timeless allure of gold as a hedge against inflation and how even modest, regular contributions can accumulate to significant holdings. 

Every listener's journey is unique, and this clip episode is crafted to offer the knowledge and inspiration to chart your course to financial empowerment and stability.


DISCLAIMER: Shelbe Chang and Michelle Herman are not licensed financial advisors. In this video, the topics discussed, and ideas presented are for entertainment purposes only. The information presented should not be construed as financial or legal advice.  We encourage you to do your own research about each investment and make a decision for yourself, whether or not you want to invest.

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Chapters

• 0:00 Financial Strategies for Income and Investments
• 9:45 Mindset and Investment Strategies

Transcript

Speaker 1: 0:00

And my boss was not very comfortable for us to work from home. Yeah, exactly Because she's more old school, more. Yeah, so she doesn't have the sense of control. Yes, that's why, right, but the good part is I was able to learn a lot of stuff during those times that I worked part time and, just like you know, when you drive to your streets or anywhere, have you ever drive somewhere and then you walk one time and you discover a lot of different things? So, yeah, so I think a lot of people, including myself, that's what happened, because we were always in the rat race. We ran, ran, ran, ran, ran, go, go, go, go, go, go go, but we never stop and look around and see, oh, you know. So that's what happened to me, because I was nothing to do and think of. What can I do, you know? So I started reading, and reading really opened my mind to many different things, yeah.

Speaker 1: 1:07

So, first of all, what are some of the things you read? Well, first of all, this can be really late to YouTube, because we talk about unemployment. So in today's world, in society, a lot of stuff or a lot of jobs or career are on uncertainty, especially today, right now, because of the inflations and all that. So what I discover is side hustles, because from school we learn, we go to school, get a good grade and we find a good job. A good job, right. So what I sense? Because I got put part time, so I have to find some different ways of, you know, make it up for my expense. So I start a lot of side hustles, yeah, which is also open to a lot of opportunities. So, like yourself, you have a transform and you have now you got a license. Yeah, I'm switching up a little bit into financial, right, right, right, so congrats. So all the guests that we interviewed, everybody is doing a lot of different things. So one solution to unemployment, or even if you are self-employed, you can branch out to different niches, different spaces. So, doing podcasts even though it's been a very long dream that I want to do, but a pandemic make it happen, right, because I learned all those stuff, that knowledge that I read from the book, that I can talk about it today. Yeah, exactly. So, besides that, I also, we talk about financial. So I also came across some I won't say trick, but ways that I've been doing for the last two years, yeah, okay. So I want to share with you guys. But then I'm not a financial advisor, so I'm just sharing what I've been doing. It's working. So you always need to consult financial advisor on this.

Speaker 1: 3:23

So the first thing I learned is pay yourself first. Pay yourself first. Yeah. What that means is a lot of time. We, you know we want to invest, we want to do something else with our money, but a lot of time we, we heard I don't have money right or our way until I can make a hundred thousand dollars right. So it's like we always catching chasing, meaning if we really get to a hundred thousand a year, we probably going to say, oh, that's what, intel 200,000. Yeah, because right, yeah, and then we will never. Because I have a lot of friends that's older than me. They're boomers, baby boomers, and I'm not putting anybody down, but it's reality that a lot of baby boomers, they are at the age to retire right now, but they can't because they don't have retirement, they don't have saving or investments, so they have to keep working. So I tell myself I do not want to work out Walmart right, right, exactly. So, yeah. So I find this is very helpful Pay yourself first.

Speaker 1: 4:49

So how does that work? Does that mean sending money for investing, or yeah. So how does it work? Is, every time I get paid, I will take, let's say, w2h, right, w2 incomes. I will take 20% out, okay, okay, before I pay credit card utility, rents and everything, just kind of like, this is the expense that you have to pay. Yes, so W2,. We get our money after tax. So just imagine your tax is 20% more. So this is money. So what I did is I take out 20% and I take 65% and put in IRA, okay, okay. So I don't pay that much per paycheck, but imagine if this is like a system or strategy, if I keep doing this over time. Right, exactly, yeah, so IRA.

Speaker 1: 5:56

So, and then I put 15% towards crypto, if you believe in crypto and other people scare of crypto. So I believe in crypto is the future and I believe the blockchain. Yes, blockchain technology, yeah, blockchain technology. And 10% I invest to real estate stuff. Okay, real estate. This is not like the actual physical real estate. It's more like a REITs yes, meaning like a fund that Everyone contribute and they buy properties or rental with your money. Fractional shares yes, what are some of those websites? One is Fund Race. I will put it down in the show now. And then Ira, I have it with Fidelity, but we have Catherine that we can help. Yes, exactly, lgbtqi Invest yeah, so we will put her information at the show now.

Speaker 1: 7:03

And last one, the last 10% I put, I save it in a saving as a cash. Yeah, so this number, it's based on age, because if, let's say, if I'm 20, still in my 20s, I might not be put not saving any cash because cash has inflation, right, so you save cash 20 years ago, it's nothing today. So, and then if your age is higher, like say 60, then your cash, you want to have more cash and less Ira. Okay, yeah, so when you're younger your Ira should be higher. So that way you have time to compound.

Speaker 1: 7:55

Right, you get the tax advantages there, right, right, so this is for W2, employment, and I also, like we say, we have side households and all that. So we, if you are 1099 or any sort of freelancing or any business, you run a business usually business my writing is bad Usually business is no tax, so whatever comes in your pocket, it's not tax deductible yet. So what I do with that income is I break it down like similar. So I put I take 25%, I mean. So 35%, 35%, put this in as a tax reserve, okay, in case I need to pay tax and this goes back to business budget, okay, okay. And then I pay myself 30%, okay, yeah.

Speaker 1: 9:00

And with this, what I did, what I do is I put 20% buying stocks and these stock are more like an individual stock, like, if you believe in Amazon, tesla, you know those individual account On top of here, ira, it's also stock, but it's more like it's called ETF, it's a holding company that holds S&P 500 companies. So you have less risk. That's why I put it in my retirement account. And for the individual stock, it's more risky, like it can go up and down, up and down.

Speaker 1: 9:45

So you have to have a very good mindset when you do this, because it's very a lot of people fear, you know fearful. So when they see go down, they sell it, they lose money. So if it goes down, if you don't sell it, you're actually not losing money. And another thing is mindset. You know how every time there's discounts or sales in department store, everybody run towards it. But when Amazon stock is going down on sale, everybody run away from it, see. So that's the big difference here. So that's why, when you do any type of investment, you have to have a good mindset.

Speaker 1: 10:24

Like crypto is, it's crashing right now. It's a good time to buy right now, yeah, it's a good time to buy right now. You buy low, sell high. So the book I read and reached out for that. He mentioned when you buy investment, to determine if you're going to make money is when you buy it now, when you sell, right, yeah, so good, very good, okay.

Speaker 1: 10:53

So, and another 10% from here, I invest into go, okay, go, yeah, the physical go, okay, I'll put a link in a show. No, this is very unique because I put 10% a little bit, a little bit, and it adds up until you can your money add up, can afford to buy a go Okay, and it's online. It's not really go in the store and you buy a go and bring it home, exactly, exactly so, yeah, put it into your mattress, yeah. So this goal is not to make money or anything, because go is more like how do you call that? A hench for inflation? Yeah, hedge for inflation. So go has been centuries, right? Yeah, exactly, yeah. So this is what I've been doing with my financial and it's working. So I just share with you guys, okay.