Episode Transcript
Speaker 0 00:00:00 Hey everybody. You're kicking it with the homeboys and the homeboys podcast, where we talk everything in the world of real estate investing, whether you're just getting started or a seasoned vent, we're gonna give you over 40 years of combined real estate experience to help you on your investing journey. Today, we've got a very exciting topic. We are talking about compounding interest.
Speaker 1 00:00:26 Let it grow. Let it grow. Let it grow.
Speaker 0 00:00:29 Amen. Man, this is something that has come up a lot on social media. Scotty and I have talked about the power of compounding interest a lot on social media, and it seems like people just don't get it. And I know that there's a lack of financial literacy amongst, um, you know, our academic institutions and really just in this country in general. But it's been mind blowing to see some of the reception that we've received from some of the, uh, the, the clips that we've posted about compounding interest.
Speaker 1 00:01:04 Yeah. This is a very needed topic in this country. We've found out, um, kind of through our social media, just how, um, confused people are on the concept of, of savings and the concept of, of compounding interest. And, and so just to, uh, if you don't understand that, uh, compounding interest in your listening, first of all, don't feel bad. You know, it's, uh, it's, it's time to learn though, cuz the, this is a, this is phase one of your financial literacy and, uh, the steps to creating financial freedom and wealth and eventually hopefully turning it into, uh, real estate wealth. But
Speaker 0 00:01:39 Let's start with you. Were doing a lot of the talking on this, on this post that, uh, we, we had posted this on TikTok, but kind of explain what we were talking about, what the gist of, of, of that post was. It was about, you know, saving X and, uh, you know, putting in an account that could, that could gain, you know, so much in interest. So let, let's, let's start there to give kind of a background into this episode on what's got our mind thinking and what we feel like we need to share with our listeners.
Speaker 1 00:02:13 Well, I, I have this, this, I like to play with savings calculators. There's some really cool, complicated ones on bank rate. I think
Speaker 0 00:02:21 You are
Speaker 1 00:02:22 A mess nerd. Massive. A dork. I'm a nerd. Nuts.
Speaker 0 00:02:24 Just,
Speaker 1 00:02:25 Just nerd.
Speaker 0 00:02:25 You're really not, but you know what? But you know, I know you do that in your free time, right? You don't really do it. You know, you don't see that side of you here at the office or when we're doing the podcast, but when I can't, that you're at home, you know, dorking out. Mm-hmm. <affirmative>, you know,
Speaker 1 00:02:40 It's true
Speaker 0 00:02:40 With the financial calculate
Speaker 1 00:02:42 Reading financial articles and playing with financial calculators. I mean, how much of a nerd could I be?
Speaker 0 00:02:47 I mean, you could be playing with something else in your free time. So I guess playing true with the financial calculators, that that's the worst thing
Speaker 1 00:02:52 In the world. It's all about trying to, uh, better myself, my friend. But, um, but we were talking about savings calculators. Uh, we, we actually have a savings calculator on, uh, the homeboys podcast.com, um, for people to kind of mess with and see the power of saving and compounding. And we just gave a simple example for people to try out, I believe we said, put in $500 a month at 6% interest, and
Speaker 0 00:03:15 I think it was three 50, but say whatever it is. Yeah. Three
Speaker 1 00:03:18 50, $500. I think first, the first one was $500 at 6% over a 35 year period. Mm-hmm. <affirmative>, you know, if you're in your twenties, put that in. And I think it came out to like 750 or $800,000 that you'd have extra in your retirement if you were able to pull that off. And the pushback we got was in was crazy. It was crazy. People just, they're like, I'm not gonna put money away now just so I can be a millionaire when I'm old and don't need it. And I, you
Speaker 0 00:03:44 Know, one of those examples was a lot less than that too. Yeah. I mean, it's like a 20 year example and I'm like, okay, all you, 20 year olds are 40. I mean, you know, or 30 year olds are 50. I mean, it's
Speaker 1 00:03:54 One of the other things that, uh, you know, the more complicated savings calculators can do is you could say, I'm gonna save $300 a month for the first 10 years from age 18 to 28, and then I'm gonna let that sit and compound on itself. Mm-hmm. <affirmative>, and that part's amazing too, if you just put money in early in your life and then park it and forget it and let it work. Right. That's amazing. But, you know, the, the continued compounding and continuing adding of money into savings, it's an amazingly powerful tool that people don't understand. Um, the example, the other example we did was $350 a month, like you said, and after 35 years, um, they had gained $350,000 of interest and only put in 150,000. I mean, the power of compounding interest is amazing. And let, let me just back up to start real quick. If you're listening and don't know what compounding interest is, it's really simple compounding interest is you investing money, you getting interest returns on that money, and then that means that your interest earns interest. So it's your money earning you money, and the money that your money earned earns you money and it just keeps snowballing. And then the money that you, your money earned, that your money earned earns you money. And it's just a giant snowball that's compounding interest in a nutshell.
Speaker 0 00:05:15 Well, it's just, you know, make it, you know, super basic and say, all right, year one, you've got a thousand dollars that turns into 1100, and then you're, you're earning, um, that interest on $1,100,
Speaker 1 00:05:31 10%
Speaker 0 00:05:31 Again, and then it's $1,210 Right. Or $2,110 that you're earning, you know, interest on. And then it just keeps going and keeps going. It keeps going. Yep. Um, but, you know, it, it's, it was, it was kind of twofold for me in, in looking at some of these comments. And I think people are so stinking shortsighted that a lot of people have gotten used to this elevator ride that they've seen in real estate. And, you know, some, some of the financial markets over the last, you know, 10 years and they think that, you know, this, this immediate gain is possible, which it's not, but nobody wants to do something that gives them a benefit in five years, 10 years, 15 years, 20 years. It's about now. It's gotta be right now.
Speaker 1 00:06:15 Yeah. It's very shortsighted.
Speaker 0 00:06:16 I just think it's, it's so shortsighted. And, and two, the number of people that are like, because I think the example that I'm thinking of, you know, was 6% and how everyone was quick to, uh, jump on you and say, 6% are you outta your mind? You know, what bank gives you 6%? You know, and you never said anything about a bank. Um, I don't know. People can't get out of their own way when it comes to savings. You know, there's plenty of ways to get 6%.
Speaker 1 00:06:48 I find it kind of sad that the people that are so focused on the now are the same people that never get ahead. And the people that, that are willing to sacrifice work extra hard now or make cuts, uh, cuts in their spending now for the future are the people that ha are incredibly successful down the road. And then the people that are in that now mentality have missed out on all of it. They never get out of this the, the situation they're in and they're immediate thinking. And it's just, it's truly a mindset difference. There's, there's almost two schools. Mm-hmm. <affirmative>, there's the people that are willing to sacrifice or work a second job in order to save and to change their circumstances versus the people that are, have the now mentality. Mm-hmm. <affirmative> and I, I really, really believe, and I've seen an example after example in our lives, and you and I started from nothing ourselves. Nothing.
Speaker 0 00:07:43 That's why it really irritates me to hear. Right. You know, people say, oh, it's easy for you to save. Well, you know what, it wasn't that long ago. I was a 22 year old kid just getting outta college and started from literally nothing. Right. I was eating ramen noodles in college to get through college. Don't talk to me about, you know, how fortunate I am. I started from nothing. You did too. Right.
Speaker 1 00:08:05 And, and I think that it's easy. Uh, we talked about how that mindset is really harmful for folks who have that a the now mentality that's coupled with the thinking that everyone else successful had their mommy or daddy help them. And it's a, it's a really unhealthy way of thinking because it's an excuse oriented thinking that that's the reason you've never made it. Well, I can't because they had a mom or dad who helped them. That's not true. Most millionaires in this country, if you look at the St statistics on it, you'll see that a lot of them started from nothing. This country's great for that, for, for being able to build yourself up. And I'm not saying it's easy for everyone. Every everybody has their own things they're up against. And in some ways we had it much easier than many, but we also had it much harder than many where you fit in that scale.
Speaker 1 00:08:55 Quit spending so much time worrying about where you are on this, on the scale of who's got it harder to, to make it and get busy making it. We didn't worry about that. We just put our nose to the grindstone and just went at it. And I didn't necessarily mean for this to turn into a diatribe on, on how you just need to put your nose to the grindstone, make sacrifices. I do. And say, you don't need to hear it, but it's true. It works. The power of compounding interest is an amazing tool for those that are patient, for those who have foresight to plan for their future. And for those that want to change where they are in life, you and I didn't wanna be poor anymore. We, we came out of the cannon hungry and ready. We just went out and did it on our own. And if that's your personality, we had a 15 year old on one of our posts the other day,
Speaker 0 00:09:43 Dude, that was
Speaker 1 00:09:44 Awesome. 15 years old. That was awesome. Talking about where he saves, how much he saves and where he's going in life, that kid is going to blow past you. If you're listening to this saying, uh, I don't wanna save, saving is hard. You're gonna get passed by a 15 year old from Australia who, who his only TikTok out there is him in a freezer doing something with a fish <laugh>. And that kid is gonna blow past you. You know, he's going places
Speaker 0 00:10:08 He is. I mean, what happens is you've got that 15 year old that that gets started. And by the time, you know, he's 25, he's got such an amazing foundation. Then you've got all these people that don't do anything till they're 35. And by that time, this 15 year old's a millionaire. Right. And then the people that are 35, it happens fast. They look back and like, oh my gosh, why didn't I do that? You know, I, I'd love to know, um, and I'll, I'll get back to compounding interest here in a little bit, but since you kind of went off on a tangent, I'm gonna, I'm gonna keep going, you know, as well. But I'd love to know that 15 year old, um, you know, what his parental situation is. Yeah. You know, if he's got, if he's got, uh, you know, a father or a mother that's, that's showing him the ropes, you know, for, you know, for me, my real estate investing journey didn't, you know, we always talk about just doing it, but it didn't start with me going out and getting my first house.
Speaker 0 00:10:59 My real estate investing journey started with my hero, which was my dad. Yeah. Um, you know, and I, I had no idea at the time when I was younger how much of a favor he was doing for me by instilling that no excuses mentality. Yeah. And he used to drive me nuts when I was a kid, you know, cuz I mean, he, he worked me to the bone, you know. But, you know, part part of that message was if you want something, go get it. Yeah. You know, don't make excuses whether that's, you know, the grades or you want, uh, you want a different, you know, a different car. I had to go, you know, pay for my own car. If the, or if it was the, the girl that you wanted to go after, you know, go do it. You know, make, make it happen. Create your own path. You
Speaker 1 00:11:47 Know what I find interesting
Speaker 0 00:11:48 When people don't want to, you know, the people just wanna make excuses today. It drives me nuts.
Speaker 1 00:11:52 I find, well, you know, what I find interesting is I had an absentee father, you know, I love the man mm-hmm. <affirmative>, but he was not a father to me, and he just wasn't. And, and I'm not crying about it, but I was driven by the fact that I saw my friend's parents have success mm-hmm. <affirmative> and real estate. And I'm was very blessed to grow up in a very wealthy area where I was surrounded by a lot of these dads who had that success mm-hmm. <affirmative>. And even without a father, I was driven by what these other dads were out there doing and the success they were finding. So, you know, you don't need a father to drive you to this.
Speaker 0 00:12:24 No, you don't. No, you
Speaker 1 00:12:25 Don't. You don't need anything. You need a drive and you need a willingness to sacrifice and you need to be willing to take some risks, but mostly you just have to start doing the steps and following the right people and getting the right information. Instead of getting on social media one night or the tv shut it all off, get on Google and go out there and just research, financial literacy, everything from compounding interest to how real estate can make you a millionaire too. Uh, stock market returns over the last 50 years. Just the basics. I know that might sound like a ton of boring work to do, but if you took one night, just one night off and spent six hours from the time you got off work until you went to bed, I think that you would be empowered in ways you could never imagine to go out and get yours.
Speaker 0 00:13:13 Well, it's, it amazed me, you know, to see so, so many naysayers come out and say that about, you know, 6%. It was, it was funny. There was one guy that talked about being in fantasy land where, uh, butterflies at antelope make babies. Mm-hmm. <affirmative>. And, um, you know, and I, I don't respond all the time, but I responded to the, to the clip. I said, well, first, you know, look at, you know, go to Google and look up average return for s and p 500 over the last 50 years. Second step, look for some kinky stuff between butterflies and analog. Right. You know, but you know, everyone has this information at their fingertips, but they're just too quick to be naysayers as opposed to getting out there and looking at what is actually true. The average s and p return since 1950 is 11%. You know, and everyone's on there telling you
Speaker 1 00:14:05 That I'm crazy for thinking 6%.
Speaker 0 00:14:07 Six. Is it possible, you know, you know, look at, uh, look at what happens. You know, what would've happened if you had invested in not even a, a company that, you know, that went crazy through the tech boom, but say you invested in, I don't know, you know, Exxon Mobil Yeah. In, uh, you know, 20 years ago, or, you know, some, you know, a big bank stock, or I'm not even saying, you know, shooting for the fences. Like whenever we were kids, you know, in college it was Microsoft and Intel, you know? Yes. It was, you know, those, those were the ones that were, were going crazy. And I'm not talking about, you know, Bitcoin or Apple or any of these other things that have, you know, Amazon, anything that's went crazy, but, you know, just bought like a, a sound, um, you know, Dow 30 stock. Right. You know, a lot of 'em have given 50, 60% returns. I'm not saying to go into that. It's a little bit Yeah. You know, more risky.
Speaker 1 00:14:58 Well, let's go through those different types of investments. So you start with, one of the options, of course, is a savings account. And, and let me just say before we get into this, we're not financial advisors. We're just talking about our experience and the things that we know. So savings accounts, F D I C insured, most banks, very little returns, if any, but it still counts as compounding interest, even if it's a quarter percent.
Speaker 0 00:15:18 It does. I mean, it has went up recently. Yeah. You know, the, the economy, you know, has shifted. You know, if we had, we had many years of 0.01% interest where you were getting, you know, really literally nothing. But there are certain savings accounts out there now that you can fi find savings accounts around 3%, which was, which is bananas.
Speaker 1 00:15:40 And
Speaker 0 00:15:40 Then there's CDs, not many of them, but there are out there.
Speaker 1 00:15:42 And then next up would be CDs, which is kind of like a savings account, but you have to lock it in the bank for a certain amount of time, you can't get your money back out. So
Speaker 0 00:15:50 Yeah, they have, uh, you know, 12 or 13 month CDs
Speaker 1 00:15:54 They have, I saw 11 month is becoming real common, 11 months, which it's weird, isn't it? Yeah. I don't know. But, uh, that's that, you know, you're approaching 4% right now, maybe even a little over 4% with those, um, which, which is high compare compared to what we're used to seeing, you know, next up after that, you've got, you can, if, if you are just starting out and you want to invest or you don't have a financial advisor. The, the beautiful thing about technology is there's apps out there like Acorns, Robinhood, even Fidelity has micro investing that they allow now through their app. So you have access to the whole world of investments. And maybe that's a good thing. Maybe that's a bad thing because it's a great way to get yourself into trouble thinking that you can gamble instead of investing soundly. But if, if you're not ready to get a financial advisor, you can use those apps to go out and chase returns. And you should get a lot of advice. You should be very conservative, at the very least, to start with all your investments. I'm not gonna tell you what you should or shouldn't do, but at the same time, just remember always the higher the risk, the higher reward, the lower the risk, usually the lower reward. And you've gotta have balance in there and be careful.
Speaker 0 00:17:03 You gotta have balance. And I, I, I'd throw some caution out. Um, whenever we, like I mentioned it earlier, whenever we were in college, the, uh, dot com, you know, boom was going on and yeah, there was, uh, there was a lot of, um, people that were getting in. This was a new term whenever we were in college day trading. Yeah. You know, that was, that was not a thing, you know, in the mid nineties, uh, early nineties, it really became about, you know, 97, 8 9, 2000, um, and, you know, because the stock market was on an incredible ride from the.com boom. And it was like throwing darts at a board there for a while. Right. Um, there was no longevity in that for people. No. You know, there's, there was, was, uh, you know, if you made it to the Great recession, which there was a hiccup in, in 2000 and 2001,
Speaker 1 00:17:55 Basically the.com bubble burst in 2000, 2001,
Speaker 0 00:17:59 And all these day traders went, you know, had to go find real jobs. Right. Um, and you know, I think that, you know, you run that wrist today too. There's been a giant elevator ride, you know, coming outta Covid to now,
Speaker 1 00:18:10 I like to tell the, the story of my brother, which, you know, which is, he came to me with some questions about what he should be doing, and he had a lot of student debt. He's, he's got two, uh, PhDs. He's a professor and he's got a lot of student debt. And believe it or not, professors don't make a ton of money. And he's like, I still, I want to pay off my student loans and then I wanna start saving. And I said, well, you need a financial advisor. And he's like, well, I don't have any money. And I said, well, that doesn't matter. That good financial advisors out there will take you from zero or negative and work with you as you built. So just cuz you don't have any money doesn't mean that you shouldn't call, pick up the telephone and call and try to find a financial advisor that will work with you, that will help you through all of this.
Speaker 1 00:18:55 Because the, the person that turns you down and says, well, call me back when you got a hundred thousand dollars, isn't the person you wanna work with anyway. So go out there and find a financial advisor. You don't need any money in order to, to start this. A good financial advisor will say, okay, let's come up with a plan to get you to, to the start line and they'll work with you and they'll make money with you for years and years and years. So don't be scared to get a true professional on your side. You know, and at the end of the day, let's be honest, Clint, you and I believe in savings outside of real estate, but before you're in that position to be able to have both, we believe in saving, converting to real estate and converting that as you, your portfolio grows in back into savings over time.
Speaker 1 00:19:40 But the goal for a new saver, in our opinion, should be to save enough through these means through compounding interest to get to the front door of your first real estate transaction. That's what we believe the steps should be. I don't know which way is best for you, which savings, whether it's a cd, whether it's Acorns, whether it's getting a financial advisor, but you gotta realize there's a pot of gold at end of that rainbow too. This isn't just about saving up $40,000, you know, half of which is, is interest earned on your money, and only half you put in the goal is to get that $40,000 so you can really start snowballing it using real estate and the compounding power that's built into real estate, long-term cash flow, and long-term holding of real estate. You wanna talk about powerful compounding and a and a way to really start getting, um, macros sized returns. That's how you do it.
Speaker 0 00:20:34 I think it's important to touch on, you know, how people get started, you know, to, to me, um, there's two categories. There's a lot of people that have the money to do it right now, to start taking advantage of compounding interest and savings and different investments right now and there. Two, there are people out there that don't have the money. You know, if you have the money, this is a much easier discussion. You know, you can, um, do a set it and forget it. Um, technique, which I've done with my financial advisor for a very long time, where, um, you know, I have a paycheck that comes from Scotty and i's business every other week, and part of that goes to him and most
Speaker 1 00:21:13 Of it goes to
Speaker 0 00:21:14 Him. Correct. And it's invested. Yeah. Um, you know, we, I I also believe in 401ks. I know it's a whole nother topic where some people don't believe in that. I, I, you know, you and I both fully invest in our 401k, but then that's, that's a, a process that is in place. And it, you know, you've got money going into that. Every, every, uh, for us it's every other week is when our payroll runs. But you know, those people that don't have any money, and it seems like on, um, social media, I get the sense that it's, it's mainly people that are under the age of 35 that are commenting that they can't do it and pointing fingers at everybody else and feeling sorry for themselves that they can't do it. And Oh, you did it because of your mom and dad set you up, which is all bs I paid a babysitter $100 on, um, Saturday night for me and my wife to go out and eat pizza.
Speaker 0 00:22:15 Yeah. Um, we have a, um, a husband and wife that cleans our office, um, twice a week here that we pay $500, um, a week to have our office clean. They do a fabulous job. Um, you know, that's just what they're doing. They're doing that on the side. Um, there's lots of ways to do it, you know, and, you know, we're talking about, you know, uh, that example that we had, you know, one of 'em was $500 a month. You know, I'm not telling everybody to go out and be a babysitter or be a, uh, be a, you know, a a a house cleaner or office cleaner. I'm just giving you a couple of examples. I mean, it's not that difficult. Right. You know, to do. I mean, I think you could also start with, go through your credit card bill, go through your, you know, bank account.
Speaker 0 00:23:05 I betcha there's a lot of ways that you could cut out, um, you know, $500 a month. It's funny that, uh, to have this conversation now. Me and my wife did an audit of our finances last week. Mind blowing how much money we were just, you know, blowing mm-hmm. <affirmative>, you know, from, you know, us having two Amazon accounts, you know, to, I mean, I know that's just 120, you know, dollars a year, but our cable, um, bill so much that we weren't even, um, using, there was some subscription services that we weren't using that we were getting, you know, billed for. It adds up, you know, quick. It's
Speaker 1 00:23:43 A great point. So for many people out there, and, and this is probably not the best advice for the youngest younger folks or somebody who isn't making a, a lot of income, but if there's high income earners out there not saving, and there are a lot in this world, statistics prove it that there's a lot of people making good money that don't have access and don't save. There, there are sacrifices you can make on both ends of that. You can sacrifice and skimp on, on what you spend and you can sacrifice and get a second job doing DoorDash and all of this. Clint and I have done these things. We're not just sitting here on an ivory tower saying, Hey, you know, quit crying. Go out and get a second job. Uh, sacrifice. Don't spend, um, don't cut off your cable. I mean, I remember I was making six figures and didn't have cable because I was early in my career and I was very lucky to make good money early, but I didn't have cable because I was trying so hard to save and build up that wealth from an early age.
Speaker 1 00:24:38 So this can be done. And we're not, again, we're not saying this from an ivory tower. We're saying this from experience. We did this. Clint was putting rehabs of houses on his credit cards when he first started and going out and painting them True at night, literally going after he got off work, going out and painting these houses. So, you know, maybe that's not for you. I hear you. That's not for everyone. Not for me anymore. No, no. <laugh>. But, but I don't choose your life though. Don't act like it's not an option or the only people that make it are people that were given it because it's an option really for everyone. And I don't b again, everyone has it different in life as far as the mo who has it the most difficult and who's up against the worst situations. Quit focusing on that and go out and get yours.
Speaker 1 00:25:24 It's doable. And then you'll see the power of compounding interest, and then you'll see the power of wealth building and you'll be able to get into real estate then. And it's just, it's amazing once you start paying attention to these things and paying and giving your finances the attention they deserve, even when it's not fun. You think Clinton, his wife, wanted to sit around and go through all their, their credit card bills LA two weeks ago. It sucked. It was awful, I'm sure. Mm-hmm. <affirmative>. But those are the steps that you have to do. I have to meet with, I meet with our financial advisor every month. Mm-hmm. <affirmative>, we, we meet with him quarterly on planning for the, you know, 401ks and IRAs and all of our finances outside of, uh, the real estate world. I don't enjoy it. I don't like looking at that stuff.
Speaker 1 00:26:09 I don't like the fact that my checking account gets vacuumed twice a month and leaves me with almost no money. You know, I joke that I'm always broke because my financial advisor empties my accounts and puts them in places where they can be compounding. Always be compounding, baby. Go out and make it happen. You don't need any money to start. Just start learning, start paying attention. Download some of those apps. Acorns, there's a bunch of them out there, um, that can help you get started with micro investing. We're talking 50 cents a week. You could be putting in some of these just to get started and understand and see, and those good habits that you set up doing it with a dollar a month will continue as your income increases. And you'll start to get excited when you see that dollar working for you and earning its own dollar. You
Speaker 0 00:26:59 Know, we've got a, we've got a friend of the show, Curtis Ray. Yeah. Um, you know, for all of our listeners out there, he, he was on the show about a year ago and he, uh, that's his saying always be compounding. He, you know, it's a great saying. And the guy is so passionate, man, he's like a, just a ball of energy. It's,
Speaker 1 00:27:17 There's a lot of people out there who are trying to fill the gap on financial literacy out there. And, um, if you're interested in these kinds of things, check us out. Keep following this podcast. Look for others who believe in conservative fair investing and can give you some good advice and who've been there before. You know, don't, like Clint says, don't, uh, be clicking the follow button when you see a guy, you know, jumping out of his Rolls Royce into his, his, uh, you know, private jet, because that guy does not understand the f the, the basic foundation principles that most that will apply to you. He understands money, don't get me wrong, he obviously makes more money than me if he has a private jet. But the things that you need to learn are the basic principles and the more simple ideas
Speaker 0 00:28:08 There is going to be exponentially more people that go bankrupt taking those douche bags advice than, um, and actually succeed. You know, you've got to pick the right people to follow and the right people to look up to. Man, there's a lot of dangerous advice, and I love talking about compounding interest, um, because I mean, I've, I've seen it in my life. You've seen it in your life. I've watched it in, um, some of my other smart, um, you know, financially smart friends lives. Um, you know, I just, I, I really want to stress people need to get started. Yeah. You know, and side hustle's a is a kind of a new buzzword. You know, if you can't do it, go get a side hustle. You know, I used to dress up in clown garb and play drums at, uh, fairs and festivals for, you know, how
Speaker 1 00:29:01 Much did you make on those 50 bucks? Oh my
Speaker 0 00:29:03 Gosh. I was making, you know, peanuts. But, uh, you know, I mean, a year I wasn't, I wasn't making much, but you
Speaker 1 00:29:10 Know, there's gotta be a joke in there. Well,
Speaker 0 00:29:12 I mean, I was probably, you know, the $500 a month I was probably, you know, close to Yeah. Making the $500 a month and everyone was saying, you know, you know, how, how would I ever do that? Plus I was doing something I love. I've been a drummer my whole life, you
Speaker 1 00:29:25 Know, so here's, here's a random tip too. So I've, we've, we own businesses, so, and you know, as they have more and more success, we can give ourselves raise raises. Well, none of the, my raises in the last 10 years has ever hit my wallet, as crazy as that is. Mm-hmm. <affirmative>, because as soon as I get a raise, I call my financial advisor, I tell him exactly how much and he sucks that money right out of there. So I don't spend it, you know, it's, it's, I'm still making sacrifices. I live so far below my means. You do too. We, we both live so far below our means.
Speaker 0 00:30:01 There's, I think I, it's the way to live as far as I'm concerned. Yeah. I mean, you know, I try to make, uh, my life about my family, uh, you know, taking care of my family. I've had, you know, sick parents a lot the last five years. You know, that's, that's, that's my, my, you know, where I spend my time. You don't have to spend money to, to go out and, you know, play, pitch, and catch with my six year old and, you know, that's, that's, that's just who I am. Or you know, it costs a lot less to cook. You know, the, I think there's so much bologna and the flash and then, you know, the flexing and what people see out there on social media and all this. I just don't think it's the way to live, you know, and be like, oh, well it's you, you live a, a boring life.
Speaker 0 00:30:47 You make the, you make you know, good money and then you don't do anything with it. No, it's not true. I go on vacations and my, my six year old's been to Disney seven times for crying out loud. You know, I, I, I, I, there's a lot of things that I do, but I also take, I like living, you know, a modest life. Right. You know, I, I, I don't work between the hours of five 30, um, and 8:30 PM cuz I'm a dad during those hours. That's what gets me. I think you gotta get your priority straight.
Speaker 1 00:31:14 Yeah. Yeah. It's a, it's, again, it's a mindset like everything else.
Speaker 0 00:31:18 Well, my friend, that's our show. Been good talking, uh, compounding interest with you. You're a smart man and, uh, you got a lot to offer our listeners. And, uh, it's, it's, Hey, you know what, it's, it's good for me to be talking about it too. You know, I've got some new savings techniques I wanna
Speaker 1 00:31:34 Do. Yeah. It's, it, it's something that we all should be paying attention to, so it's good for us to talk about and pay attention in our own lives.
Speaker 0 00:31:40 Well, if you've made it this far, we'd really appreciate it. If you would leave us a review on Spotify or Apple Podcasts, it really helps us to grow this podcast and reach as many people as we can to help them understand the world of investing and in particular, real estate investing. You could also find some short form content on TikTok. Our TikTok is at the Homeboys podcast where you can learn even more about the power of real estate. Tell next time everybody happy investing.
