Making $100k/month Isn’t What You Think

[00:00:00]The biggest scam there is, making a million dollars. Today we're talking about why making a million dollars a year is not enough money.

[00:00:09]So, did you know, and studies have actually come out to prove this, that most people who are millionaires are still, you know, even high six figures are still paycheck to paycheck. A lot of people may have a million dollar net worth, right? Meaning, you know, their home is worth a million dollars, but they're still not keeping that much money.

[00:00:29]So, let's debunk this cuz I get asked about these kind of topics all the time.

[00:00:33]So, what is a million dollars a year? A million dollars a year is roughly around $84,000, $85,000 a month. Now, the thing that people don't understand is, to generate this income, there is business expenses.

[00:00:47]And before I get into this, I want to I want to first start this video off by letting you guys know that what people tell you on the internet, you have to be careful and uncover it. Right? I've talked about this before. A million dollars a year might be revenue, but it's not profit. I've had so many business owners that we work with and they have these big numbers. Oh, we make 75 grand a month. Then I ask them some questions. Oh, well, we're spending 25k on ads, we're spending 30k on this, we have all these subscriptions. I'm actually just keeping $10,000 a month.

[00:01:21]So, it it's it's you have to always uncover the truth. And I'm here to deliver the truth. Right? Our business does well, but businesses are a challenge. And I'm going to tell you that a million dollars is not enough money, especially because you're not going to do it by yourself.

[00:01:36]And nobody's making a million dollars on their own on a computer in Bali. That [ __ ] does not [ __ ] exist. That's a lie. You have team members, you have fulfillment, you have delivery. There's all types of costs that come with generating this income. So, business expenses alone are going to take about 40 to 50% of your income.

[00:01:58]A good business is operating around 30% profit margins. You make a million dollars a year, right? You profit around 300 grand as the business. Then you split it amongst your living expenses, etc., etc. And you're you're not left with that much money. Then the IRS wants that 300 grand, they want 27% of it. So now, what are you left with?

[00:02:20]And they don't want that 20%. It it it it from one month, they want it from all the months. So it's your total revenue.

[00:02:27]Every single time I've made more money, I've had to give the IRS more money.

[00:02:31]Every single time I've had to and we've had a boost or a a record month, that meant I had to give more in taxes.

[00:02:39]So, what I've learned now, and I've said this, I'm going to downgrade my lifestyle, I'm going to do a a whole bunch of stuff moving forward, because I want to just put as much back into the business and keep growing that difference. The way you really get wealthy and why a million dollars is not enough is because your taxes, your expenses, you're left with not much after your living expenses, after everything. If you're making a million dollars a year as a business owner, you should be trying to keep a month, maybe 10 grand maximum. You should be trying to live off of $10,000 a month. Crazy, right?

[00:03:12]You let That's how crazy it needs to be.

[00:03:14]If you make a million dollars a year, you should be living off of 10 grand.

[00:03:17]You got you a nice one-bedroom apartment, right? If you're a single guy, if you're if you have a a wife or whatever, you have a two-bedroom for now. Not a damn should not get a damn house. I shouldn't have gotten this house. I didn't need all of this right now. I should have just stayed in the one-bedroom, which is what I'm going to go back to.

[00:03:33]Definitely don't need a damn house, cuz a house is going to run you triple, almost you're going to you're going to eat up all your excess income that you could be putting back into the business.

[00:03:42]And then as you make more money, the you have fixed costs. So, things like your rent, your food, your utilities, your car note. These are all fixed expenses.

[00:03:53]They don't change.

[00:03:55]And with business, you're going to have great months, mid months, terrible months as you constantly adjust it. So, you got to make sure that your fixed costs, your fixed expenses are as low as possible because you're not going to make a million dollars a year without having to spend a lot of money. You're not going to make a million dollars a year without having to spend a hundred grand, two hundred grand. It's not going to happen. So, a million dollars a year when you break down these numbers, when you decipher it, when you tear it down, it ends up being maybe ten to twenty grand a month that you're like you should be trying to live off of. Because if you take You could take more. You're like, "Oh my god, [ __ ] 200 grand a month." You can take more. You can take more profit, but just know you're going to pay more in taxes. So, that money should be put right back into the business, right back into investing into the company to keep growing. If your income is here, through the roof, and your expenses is here, you reinvest the difference, you get richer and richer.

[00:04:50]So, then you can eventually invest that difference as a business owner. You're not a tech company. I'm I'm over here helping people who have a a business, a skill, a product, or whatever it is.

[00:05:01]You don't own a tech conglomerate where you build EBITDA value, you build company value to hundreds of billions, and then you can live off of stock. You don't have that that leisure. You have a business where you provide a service.

[00:05:15]Your business very much so isn't sellable. That's another video. I don't want to get into this.

[00:05:20]>> [laughter] >> Your business is very much not even sellable. So, the only way you can even live off your debt or live off borrowed assets is if you had a sellable business and you took a loan against that. I don't really My I don't think my business is is sellable unless I completely replace myself, but I'm the face. Unless we completely automated everything and got rid of me, which would be very hard, then my business would be valuable enough to be able to sell. But, if you're a brand owner, business owner, that personal brand aspect makes your business hard to sell. It gives you tremendous leverage, but it also makes it very hard to sell.

[00:05:54]So, you can't go to the damn bank and say, "Oh, my business makes a million dollars a year. Uh give me a 5x multiple. Let me exit and dip."

[00:06:02]Not going to happen.

[00:06:04]Your company ain't worth that much to investors. They don't give a [ __ ] So, the only way for you to get rich as a business owner, not a tech conglomerate, is to have enough income, more than enough, make a lot of money, right? And keep your expenses low, and you reinvest the difference back into the business to grow, and a portion into investable assets. Assets like rental properties, Section 8, uh uh uh Airbnb, whatever it is that you want to invest in, where you can have passive cash flow, and then you can borrow against those assets. So, you want to use your business, your coaching business, your your e-learning business, whatever it is, to make as much money, live below your means, reinvest more into that to keep it growing, and go start investing into investable assets, so you can have assets that you can borrow against. You need investable assets, in my opinion, of over $50 million for you to live off of them comfortably, yearly. Like, do have do whatever you I'm talking about life of freedom. Go away you want. I say $100 million minimum. Go wherever you want, do whatever you want. Until then, you have to keep growing this baby, the part of the business that actually brings the income, until you can get more cash flowing assets, Section 8, real estate.

[00:07:17]You got to get more things that bring in cash flow, and then you can go, "Okay, I'm in a good spot." But, if you don't have properties, you don't have investable assets that that can actually you can actually put collateral on, you're not rich. You're not rich. I I think rich to me is $100 million in investable assets. My My business does well. I make more I make more income than most people, but I don't consider myself rich yet, cuz I I mean, I can't just stop what I'm doing and just go to sleep.

[00:07:46]Nor would I ever want to, even if I have a billion investable assets, I don't I wouldn't want to. But really, really free is you have this business, this brand that is creating the income, you live below your means, like try to try to take as little profit as possible so the IRS doesn't tax you to death, so you can keep your income bracket your taxable income bracket as lowest possible. Take very little income, reinvest most of that money back into the business, take more some of that money and put into investable assets, and start producing cash flow from that.

[00:08:18]So that way your baby, the business, keeps funding your investable assets, and then you reach financial freedom.

[00:08:23]That's literally how you get rich. And we help business owners do that. So now I figured out the formula.

[00:08:29]I'm going to keep growing my business, keep growing my service, help other people build their business with social media, create that brand that people know, like, and trust you. You have a consistent avenue, a consistent vehicle that brings you income on a high high clip that you can then go put into other things to get rich. And we do that through done-for-you content. We script, we edit, we ideate. All you do is post.

[00:08:54]It's very, very straightforward. We come up with all the strategy, we build the content around you, and we make it very, very simple for you to excel. If you have a skill, offer, business that you want to you want to get more visibility and eyeballs, this is what we do. So, I invite you now that you know that a million dollars is not enough money, you're going to get taxed to death unless you keep a very little profit, meaning you cannot touch the money essentially. You got to just put it back into the business. So, if you want to if you want to grow your business with organic content, get visibility, cuz it's the fastest way to compound attention, and to bring more customers to your business, all right, I want to invite you on a brand scan call.

[00:09:31]On this brand scan call, it's no theory, it's just clarity. All right, we look at what's working, what's not working. We look at three we have a three-step process.

[00:09:41]Attraction, systems, conversions.

[00:09:44]We look at what you're doing to currently attract customers.

[00:09:46]Right? What you're doing to convert these customers.

[00:09:50]And what systems need to be installed to make this almost automated.

[00:09:54]So you can keep running your business while we run the marketing and content for you.

[00:09:59]You want to learn more? Link is in the description, pinned comments. It's very straightforward. You click that damn link, it's going to bring you to a page that has a video of my face, my beautiful face, explaining what the offer is, what we offer, like step-by-step, and then there's going to be a bunch of testimonials of a whole bunch of people we've helped.

[00:10:17]So you can see we've done we have proof that we've done this [ __ ] And then you fill out an application, you're going to send the be sent an email or a text confirming that call, and then you're going to talk to one of our specialists. And then they're going to walk through exactly what is it that you have going on, whether we can help you, if we can help you or not. But a lot of people think a million dollars a year is a lot, but they don't they don't factor the things that it it take to get that much money.

[00:10:40]If you're keeping a million dollars a year, you're making well over five, 10 million.

[00:10:47]That's the real. So you don't make a million dollars a year. You you want to talk about profit. And you ain't profiting a damn million dollars a year you're making a million dollars a year.

[00:10:55]You got to be making way more than that.

[00:10:57]So those are that's a whole different stratosphere that you need to open your mind up to. Like, comment, subscribe, share the video. I'll get back with you guys next time.