Episode 007 - Your Success Path: It's Time to Make a PlanSep 28, 2018
Here are the books Michelle referenced in today's podcast. Note, these are Affiliate Links.
[00:00] It's time to make a plan
[00:02] your dream of life. In this week's episode, I'm going to help you get started - from no properties and no money to lots of properties and lots of money in a place where you can retire. So get ready
[00:17] over the last two centuries, nearly 90 percent of the world's millionaires, and created their wealth through real estate here to tell you how you can ride this wave with less risk and less capital law. Creating greater income is your host best selling author and speaker, Michelle Russell.
[00:39] Hi, it's Michelle, the master of money mindset and I'm here for episode number seven of the short term rental revenue podcast. So very quickly I just wanted to say thank you for sharing it, subscribing and all the reviews that we're getting. I'm super excited about this and I'm so, so, so appreciative of you and I just want to thank you for listening and today you and I are going to make a plan. So everyone knows that there's a bunch of data out there about goal setting, right? Um, and some of this data is really old and you've probably heard it since the time you were in high school that, you know, of the entire population, about 83 percent of people have no goals and you know, they don't set any goals. 83 percent night, I don't know, I see that as kind of a high number.
[01:32] I honestly have a hard time believing that, but that's what they say. So we're just going to go with it. But of the, you know, the rest of the people out there, 14 percent of them have goals, but they just keep those goals in their head. They're unwritten goals and they achieve 10 percent more than the people with no goals whatsoever. But then there's three percent of people who write down their goals and if those people, they are 30 percent more likely to achieve and experience their goals than anyone else. So the more you write down your goals and go for your goals, you know, the more likely you are to achieve them. Okay. So there are a ton of books and you know, courses out there about how to set goals, right, what types of goals there are. Then some people use different acronyms to describe them.
[02:27] So there are smart goals which are specific, measurable, attainable, relevant, and timely. There are also stupid goals, right? Stupid goals mean you have to sacrifice something, you know, you have to give up a little bit of your time, let's say for something else. So there's a little bit of sacrifice involved. T is either time or team, I think depending on who's you look at. But then the U is uplifting, the P is planning. I is inspired and the D is a deadline. I like Brendon Burchard, he has dumb goals which are poor. Brendan. Brendan has dumb goals which are dream driven, uplifting method friendly and behavioral driven. So, um, he loves rituals and I, I love rituals. I've written articles about rituals. That was my favorite thing I think that I've ever learned from any of my mentors was Brendan talked about rituals and just setting up daily habits that we do everyday and he calls them rituals and um, that's where the B in his dumb goals are the behaviors that you do every single day.
[03:40] Also, one of my favorite podcast comes from another mentor of mine, James Wedmore on his mind, your business podcast. And in episode 179 he talks about smart goals versus stupid goals. So if you want to just head over to his and listen to that later on, I mean that would be really great. I love having both written and visual goals. I'm like a dream board or you know, some people call them a vision board, whatever it is, where you put the pictures of everything on there. Those are great to have. And I like throwing in affirmations and visualizations as well because I know that your brain can't tell the difference between what you're visualizing and what is a true memory of yours. So I wrote down a few cool little facts for you about the studies that they did on athletes and weight training athletes who visualized increased their strength.
[04:34] 13.5% and basketball players improve their shooting skills 23% by visualizing and long jumpers performed better. 45% of the time when they visualized. So visualizing is incredibly, incredibly powerful, but one thing is really clear. It's not enough to just think about your goals, right? Obviously you should be dwelling on the goals that you have and constantly thinking about them, but it's not enough to do just that and it's not enough to just write things down. You know, writing down is very, very important. And obviously everybody, you should do it. I mean, especially with a stat that said 3% of the people do 30 times, you know better because they write their goals down. So that's important, but it's not enough that you do only that. Okay? You have to take massive, massive action. And I got that a long time ago when I graduated from mastery university with Tony Robbins.
[05:41] That was way back in the ads that I graduated from them, but I remember when Tony talked about it, he said, whatever you do, you have to take massive action. Anytime you read a book, take action on it. Anytime you listened to a course or a podcast or anytime you're learning anything, turnaround and put that plan into action right away and it's super important that you do that. I want everyone that is listening to this. If you're listening in the car, then great. I understand that you can't. You know right now, write this down or take any notes on it, but when you get home, I want you to write it down because this one is something you're going to need to write down. We're going to create a plan and it's going to be a pathway and literally I understand that you can see it in your mind, but when you see it on paper and kind of cements it in so those of you who are with me who are at home or in an office or someplace where you're able to write this down, write all this stuff down and start writing down your pathway.
[06:43] Okay, and those of you who are in a car, when you get to, you know, you pull over to the side or you get to where you're going. Get a piece of paper or the back of an envelope. I don't care what you grab a Crayon or whatever you got close, but grab something and start writing it down and then get ready to take massive action on it. Okay, great. Now when we do something, I also like to do many, many things to get my goals moving. One of those things is meditating where you allow your mind to just kind of flow and wander. Obviously there some people who teach you to clear your mind. I am a little bit ADD I cannot clear my mind. My mind is a constant pop up, up, up, up, up, up, up, up, up. There are very few things that slow my mind down, but when I can I meditate and that kind of connects me to source, right?
[07:39] I get connected to what I believe my higher self and my God is the universe. I connect to that source and I kind of relax and allow my mind to start wandering and I began to see all the opportunities and all the possibilities and all the various outcomes of the things that I am creating or that I wish to create. And then you know, you can take that later and you can create your dream boards or your vision boards and you can write down your goals that you dreamt up during your meditation, right? You can also create these awesome mantras. You know that I'm rich beyond my wildest dreams. I am, I am, I am. That was like one of my favorite goals, setting books from a long time ago and I believe that is the exact title. "I am rich beyond my wildest dreams.
[08:31] I am. I am. I am". It was an amazing book that taught you how to goal set, but I loved it. You can create your own mantras that you start to say as soon as you wake up and as you're falling asleep, that kind of puts you in that mode, right? Affirmations and mantras are amazing and all of your goals to that. You're dreaming of these things not be easily obtained. What I mean is you should always be stepping outside of your comfort zone. It's really important to move forward and you're never going to move forward in an easy way. Something's going to scare you at least a little bit, so you should always be, you know, competing with yourself, setting little goals for yourself to keep you moving forward. And we're going to do this today by creating this success path. And we're going to start this path.
[09:27] Like I said, visualize a game like the board game, game of life, right? So there's a beginning and an end. You were born and then you grow up and you might go to college or you might just go right to work and then you get married along the way and have kids or not, and then you can buy insurance or you don't, and you end up either in the poor house or you end up in that mansion on the hill, right? But there's a beginning and an end and a path all along the way. That's your success path and where you are now is going to be the beginning of that path. We're not going to go way back to when you were born. We're going to start it now and where you are now and where you want to be will be at the end.
[10:12] So right now, let's just say as an example, you have no money coming in from any kind of residual income and no properties, but at the end of this path, you're going to have lots of money and a lot of rental properties that you owned. Okay? But right now we're going to have that beginning with no money, no properties, and the end of, with lots of money and lots of properties, and then a big path along the way. Now the path can be straight or the path can be curved. It's your path. You design it. Okay? But today we're gonna focus on this written path and this visual path for you who are driving, who are going to write it down later. Okay? So remember, if you are driving, you're going to take immediate action when you get done and you're gonna write all of this down. Alright? Okay. Let's create your path.
[11:10] We're going to set money goals right now. Everything also has other goals. Go with them and I'll. I'll kind of touch on that, but let's talk about monetary goals when we're sending this path. We are all in different areas, right? We all have different needs. We all have different wants. We all have different dreams and desires and the cost of living in Arizona is way lower than it is in our neighboring state of California, which is the People's Republic of California as we like to call it, but there are where you live and all the people that there are. I mean everybody has different wants, needs, so you have to be the one who sets up your success, your definition of success because somebody who's making 100,000 in the state of Arizona can live pretty well, but if you're living up in, you know, San Francisco and you're making $100,000 a year.
[12:12] My friend told me because we were just up there and he lives there and he said, do you realize that people who make 100,000 a year here are actually poverty level? And that. I thought that was incredible because you can live, you know, depending on where you are, you can live very well on $100,000. So you have to find and define your own definition of wealth and how much you want to make. A second thing I want to kind of cover is, you know, finding a comfy cost of living and then a pleasant, you know, income for living and then just blow that up and have like, you know, the Warren Buffet, you know, style of living. So let's find all three of those for yourself. Okay? So find your comfortable cost of living. Think about that now. What, what would make you comfortable right now in the current home you have, the current car you have that you're driving or if you're not driving a car, you know the current forms of transportation, wherever you are, what income if you didn't, you know, don't worry about how you're going to make it.
[13:23] Never worry about the house. Mike Dooley always calls him the dreaded house. I love that. Um, we're not going to worry about how. We're just going to worry about the income number. Okay? So what number would just make you currently, you know, very comfortable. Yeah. Think about that, right? And then write that number down and then for you driving, you're going to do that later. But that's going to be, that's going to be like a milestone for you along that path, that current path. Now remember, we're sending it along that pathway because in this path we're talking about residual income and we're starting with zero. So that money that you're making now, if you're right there right now, you're making that in a different way, right? You're, you know, you might have a job or you might have a career that is creating that income for you, but we're going to make that milestone a with a residual income.
[14:24] That's why it's along that path. Okay? So now the second milestone is going to be a really pleasant income. Even better than the one you have now. So you're going to have a nice house that you're really, really comfortable in and you know, if you're not there now, don't worry. But you want to have nice cars that are, you know, they run really well and they're not constantly being fixed and you've got one for both you and your significant other and maybe for your kids or whatever, you want to have pleasant vacations that you get to go on a few times a year. Right? And you have money that you, extra money that you're putting in savings or you're giving to charity. Right? So this income is a little bit better. You've got money that you're giving money that you're saving for the future, you know, and you're making a really good living. So this is a very pleasant, very pleasant income. What would that income look like to you right now? And what would that number be? I want you to think about that. Yeah. Feel it. Okay. Feel. I love feeling when I'm thinking about things and dreaming about them. I kind of like setting myself in that place and just kind of going, Huh, what would it feel like if I had this kind of house, this kind of car, you know, this kind of vacation kind of the event. Right? So those of you who could write it down, write that number down, what income would that be
[16:08] and those of you driving, you know you're going to do it later, but kind of visualize the number in your head and put it a little farther along that path. Okay? That's going to be milestone number or B, we're going to call milestone beat. We had milestone A, milestone B. Okay? Now let's go for milestone C. We're going to blow it up. Okay? We're gonna blow it up and I want you to think Bill Gates blowing it up. What is a dream income for you? Like you know that it would be a millionaire and I want you to really, really aim for the stars, right? If you aim for the stars and you shoot you, we'll definitely hit the moon and you know, because the stars are farther out. So just aim high. Really think of, you know, a beautiful mansion and maybe I know maybe you don't want to live in a mansion.
[17:01] I'm maybe you don't want, you know, a yacht or something, but just aim high and let's aim for a big number. Right? And just think go just for a second. Put yourself in your little mtb mode where you know, you're watching cribs or something. You're like, yeah, that would be nice. I would not want to live that way, but, but just put it out there. Okay. So now think of that number. Write it down if you can just kind of hop in there. All right, so now we're going to draw our path, right? We've got our beginning at zero are ending lots and lots of money right in the millionaire mansion, right? And the path along the way, we're going to have these milestones. Okay. Milestone A, milestone B and milestone C. Alright, now when you think of A, we said that was our current or a little bit above, right?
[18:07] Was a comfy, comfy way of living a milestone B was a really pleasant income. Something that got us, you know, enough money to go on vacations with live in a nice house actually be able to save and give money easily. Right? So that was a very comfortable living. And then what milestone C was, you know, where we really just blew it up and that was the Warren Buffett Bill Gates money that we were thinking about. Okay, so now we've got these milestones and you're going to draw those out and I'm just going to make up a number just for example's sake because you know, we need a number to look at as we're doing this. Okay? Um, so we're gonna start at zero. That was our beginning and then we're going to make milestone A $100,000 a year and we're going to make milestone B $350,000 a year.
[19:06] And we're going to make milestone C $4,000,000 a year. Okay? Now yours can be bigger or smaller. It doesn't really matter because this is your path. The Path that you're looking at, the path that you're seeing right now is your path. It belongs to you. No one else, and no one else is going to judge it. It is as big as you want or as small as you like or you know, for you it's perfect. It's not too big, not too small, because you are Goldilocks. You get to decide what's too hot, what's too cold for you, right? So look at your path and you set your numbers. The numbers I'm going to use, like I said, are just examples. Okay, okay. Now we set those milestones and those milestones are steps along your path and right now we're going to go and look at those steps.
[20:00] Dollar wise, we're gonna set a dollar amount to them and like I said, I gave examples of, you know, milestone A being 100,000. B, 350,000 and C was 4 million. So if I'm starting on those path and I give those numbers, those milestones numbers, I'm also going to look in between them and I'm going to start setting little, stepping stones, little things that are going to get me to those big milestones, right? So if milestone A is 100,000 dollars and start was a zero, then I'm going to put three little paths in the middle of that and those paths are going to be equal to 25,000 a year. 50,000 a year, 75,000 a year, and then obviously the next step will get me to my milestone, A of 100,000 a year. Right? So we're going to understand that those are just tiny little stepping stones that get us to these big milestones.
[21:05] Right? And again, we're only talking dollar rise right now. Um, I'll, I'll go more into detail later with other steps, but right now we're just setting up our path and, and seeing what it looks like. So this allows us to focus on, you know, these little steps. Now understand to that $25,000 a year multiplied by two will get me $50,000 a year and $75,000 a year is just 25 multiplied by three. Right? And then when I multiply that 25 by four, I'll get my milestone of 100,000 a year. So breaking it up into little steps like that allows me to know and realize that I just have to multiply it and I can just right now focus on that first tiny step, that first stepping stone of $25,000. And that's what we're going to do now, $25,000 divided by 12 months, right? Because we going to make 25,000 a year at first.
[22:15] That's our first little stepping stone. Um, if you divide it by 12, you get $2,083.33 and then it just goes through three, three. So you put the line over, it just shows that that goes on forever. But let's just round it up to $2,100 a month. And I know that in short term rentals, that one good property will make me $2,100 a month easily. Um, or, or you can have four little properties like the ones we just picked up in, in Tucson though, those don't make nearly as much money, but one good property will make you 2100 a month. And I can break that down for you easily because let's say if you have a rent of about 1200 a month that you're paying now to a landlord. And your electric is about $350, um, internet about $80, Gas is about $30, Water $65.
[23:13] Let's see. So that $1,725 a month in expenses on a property. Now if that property could, could net you or gross about $200 a night on the weekends and anywhere between $125 and $150 on the week days. Let's see if you had $200 times eight weekend nights that $1600 and $125 a night times 20 weekday nights. But that's, I'm $2,500 right? So $1600 plus $2,500. That is your gross. About $4,100. So $4,100 coming in every month with $1,725 and expenses, that's about $2,375 in profit every single month from one property. Okay. So did you get that? I mean you don't have to write that down, especially if you're. Obviously if you're driving, you don't want to. And if you're driving you can go back and you can listen to it and write it down again. And I'll go over the numbers really quick. I'm going to write these down to for you.
[24:23] Okay. So one property where you're paying a rent of $1200 electric, $350 internet, $80 gas, $30 water $65. If you add up those expenses, it comes to $1,725. And then on the other side, those were your expenses. Now let's go over to your income. If your income was $200 a night for the weekend nights and anywhere between $125 and $150 a night on the weekday nights than 200 times eight weekend nights would be $1,600 in income every month. And a 125 times 20 nights would be $2,500 income. So here's the deal, you, you'll have, you know, easily have made your $2,100 for the month with that property, that one property. So do you understand how one good property can make you $25,000 a year? So what do you think that you have to do in order to make $50,000 a year? You just have to duplicate that property, right?
[25:37] You just have to find another one. Like it and duplicate it, right? So if you duplicate that property twice, then you have $50,000 a year, you've got two properties that equals 3 properties. We'll give you $75,000 a year for properties, will give you a $100,000 a year, right? So you'll reach your first milestone with 4 properties. If, if you're setting your goal at that, you know that income level of $2100. Now what of your properties are smaller? What if you're only making $500 a property, then 4 properties give, we'll give you your, you know, your income of the $25,000 and then you just multiply everything by four, right? So instead of 2 giving you $50,000 a year, you'll have 8, just multiply it by 4 and instead of 3 properties making you $75,000 a year, you'll need 12 properties at $500, just over $500, right?
[26:48] So just multiply those numbers if you're coming up in your area with something else, you just, it's all math, that's all it is. But you're setting financial goals, right? Okay. Now let's talk about action wise, the steps to achieving those. So let's go back, back to the beginning, looking at our path and see action wise, what we have to do in order to achieve our $100,000 goal, right? So go back, look at the path in your mind. You see between the zero and the first milestone of $100,000, you've got your three steps. Remember one is $25,000 income, one is $50,000 one is $75,000. So see them in your mind or on your paper. Now what are you going to have to do in order to obtain that first property that's going to make you the $2,100 a month? What are you going to have to do action wise, not money wise, action wise?
[27:51] Well, there are real steps that are involved to any startup and I covered those all an episode number 4, but I'm going to go over them with you right now again. Okay, and those are, remember they all started with an S. I hope you listened to that episode. It was a good episode. I'm search for the property, secure, stage, set up, sink and sell, systematize, Shampoo, rinse and repeat, right? Those were the steps and if you you don't know exactly what those mean, go back and listen to episode number 4 and you'll get it exactly what I'm talking about, but basically those are going to be the steps you have to take in order to achieve that $25,000 and the shampoo, rinse and repeat is basically telling you, now do it again, clean it up and do it again and do it again, and then do it again and do it again.
[28:50] Why? Because every time you get one property done, don't just sit back and relax. The more properties you get, the easier actually this business becomes. You're never really doing it alone. Like at first when you first start investing, it seems it seems like an overwhelming amount of work, but the more that you get, the more people you put on your team, the more money you'll make. So you'll never be alone. And once you get over three or four properties, you can actually make your business easier. And you know, systematize it better and automate it better with all kinds of tools that we're going to go over here for you. But the more properties you have, the more money you'll make and you're just going to duplicate those steps over and over and over. So remember one property at $2,100 a month will make $25,000 a year, right?
[29:48] So how many times are we going to have to search secure stage, setup, sync, sell, systematized, and then shampoo, rinse and repeat. How many times are we going to have to do that? Well, one time for $2,100 a month, which is the first step, 2 times for $50,000, 3 times for $75,000, 4 times for $100,000. How many times are we going to have to do it? Making that much money? Remember that they're going to be properties that make more and properties that make less. But let's just say that all of them made as $2,100 right now, right? So how many times we would we have to do that in order to make $350,000? 14 Times 14 times. And then to make $1,000,000. Well that's just 10 times you're 100,000, right? So instead of four times, 40 times 40 times will make you a million dollars and if you do it a hundred and 60 times, I know that sounds like a lot, but it's really not.
[30:55] I know it sounds like even the first dozen properties I got, I remember thinking that I'll never get 12 properties and once I got 12 properties I was like, oh well what about 20 properties? Like the more you get under your belt, the easier it becomes. It really does and I can't stress that enough. So don't start freaking out about numbers and definitely don't start freaking out about how you're going to do this. Okay. You're going to do it a little bit at a time. It's just like learning to walk, right? You just got to get up and do it. Take those few steps. And if you're walking from, you know, La to New York, you don't sit there and talk about in your head, oh my gosh, it's going to be millions and millions and millions of steps. You set your first goal about walking to, you know, Phoenix, and then you're going to walk to Oklahoma and then you're gonna like you're gonna.
[31:48] Set a little path along the way and break it up, break it up, break it up, and, and if you focus on just what you have to do right now, it will not seem as overwhelming as it seems at first. $160,000 is absolutely duplicatable. And you're talking about millionaire people like Robert Kiyosaki. They have hundreds and hundreds of rental units that they rent out. And some of those units only make $50 a unit and those of units that they own, you are talking about a property that you don't even own. So it's. This is totally doable, totally doable, completely doable. And along this path I'm also going to teach you how to take the properties from being properties that you just rent and adding to your portfolio of properties that you own so that at the end you'll not only be building your monthly income and your cashflow every month, but you're actually going to be building your wealth as well.
[32:55] Okay, so along the way we're going to be doing all of this, but this is just to wrap your mind around the milestones and your success path. So I wanted to thank you for liking and sharing and I love the comments. Thank you so much for the comments that you're making on Itunes. I want to thank you for subscribing. Please go to our website, the short term rental revenue .com, short term rental revenue.com. And you or you can go to STRrevenue.com. It will take you to the same place. Subscribed there because we have lots of free stuff on its way to you. We are building a, an entire library and Encyclopedia of information and Resources and courses and everything is being set up for you. We have some other stuff that we've done, but we're, we're just tweaking the heck out of it. We want, we want you to be successful.
[33:54] We want, we want to hear your stories about, um, you know, how we've helped you and remember we have the q and a's every Monday too, and those are 8pm out here eastern time, but there are 5:00 PM Pacific time or Arizona time. Um, I shouldn't say Pacific, I should say Arizona because Arizona does not change your time, but I set them up to be 5:00 PM Arizona time every single Monday on my facebook page. So if you go to the short term rental revenue facebook page, you'll see a link back to my page where we do a facebook live less this Monday. We just did one and they, it, it broke up like three times and kept going off. So then I would restart it and restart it. So I'm thinking that maybe I might do periscope or I might learn how to do youtube live so that I don't lose my feed.
[34:50] Then tire time. That was very frustrating. Um, and I appreciate those of you who stuck with me on that because we answered questions, but if you have questions, post them there on that page. If you're afraid to post them on a comment, go and post them in a private message to us. We'll get to them as soon as we can. Um, hopefully we'll get to every single one of them lately. We've been able to get to every single one of those questions and answer them for you. And again, thanks so much for listening. Have a great day. Go and grow. God bless. Bye Bye.