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Episode 057 - Insurance: Why You Don't Wait for a Hurricane Before Buying It

insurance Sep 09, 2019
 

SHOW NOTES & LESSONS

Insurance Companies Are in Business to Make Money

 

Every "Business" is in business to make money. Non-Profits may give money away but they still want to raise money for their charity.

 

Insurance companies do a Cost Analysis based on a variety of factors but mostly LOCATION. They make sure that more money is coming in than going out. They invest the "extra" income further to make more money, The riskier the location, the greater the cost of insurance.

 

Can you get Hurricane Insurance when a hurricane is nearly at your doorstep? Not likely. And if you can, you are going to pay DEARLY for it. If the smoke from a brush fire is creeping up the mountain towards your house, the time to get the insurance coverage you need is already gone. The Door of opportunity has most likely closed.

 

A loss of income policy may not be cheap but it is nice to have, especially when the Governor declares a State of Emergency!

 

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Recommended Article or Blog Post Related to This Week's Podcast:

What Types of Insurance Do I Need for My Short-Term Rental?

Recommended Podcast Episode that is paired with this one like a Fine Wine:

Episode 023 - What Types of Insurance Do I Need for My STR?

Get This Episode's Show Notes in a pdf form...

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Show Transcript

[00:01] Over the last two centuries, nearly 90 percent of the world's millionaires have created their wealth through real estate. Here to tell you how you can ride this wave with less risk and less capital while creating greater income, is your host, best selling author and Speaker, Michelle Russell.

[00:21] Hi, this is Michelle, the Master of Money Mindset, and you are listening to the Short Term Rental Revenue Podcast...

and in today's episode, Speaker 1: (00:29)
we're going to talk about insurance because of the hurricane. I want to talk to you about why you didn't do this before. A Damn hurricane came through. No, you should have done it before, but before we get started, I want to remind you that our podcast today is brought to you by audible. You can get your first audio book download for free and 30 days have an audible trial membership by going to audible trial.com forward slash s t r revenue. That's audible, trial.com forward slash s t r revenue. So here's the deal guys. I got on today and called our insurance guy over at proper insurer because we're thinking of buying a property that we rent right now. And I wanted to see what we could count on for the front of this house and the back of this house, owning it, what our insurance would be per year and get a good quote on it.

Speaker 1: (01:28)
So as I was talking to him, we had the hurricane was going through and you know, we were talking about, uh, it's looking like it's, it stalled over The Bahamas right now and it's going to be going up the coast of Florida. And the governor of Florida has declared a state of emergency, so they've shut down the airports. Orlando International is shutdown and you guys know, I love going, this is the time of year that I go down every September, every September. We've got these are against you. I mean, it's hurricane season. I mean, they call it hurricane season, as in, this is a season that hurricanes come, but every year we go through the same thing. So I'm talking to the insurance guy about this. And he said, Michelle, you will not believe it. There are people right now calling him from Florida and they're trying to get their places insured and they're on the beach and they're just, this hurricane is coming.

Speaker 1: (02:22)
It's like now is not a good time to be calling and trying to get insurance as a hurricane is coming towards your house. Imagine being those houses in California when the wildfires come. We get those wildfires here in Arizona all the time. You can't call them as a fire is creeping up to your house. My house burned down. I lost my house to a fire. I know. Can you imagine if I called them and say, Hey, no, my house is about to burn down. I would really love some extra insurance right now. No, it would be not a good time to insure you because insurance companies are businesses and their job is not to lose a lot of money with a bunch of claims, so they've had all these math geeks do the numbers. They know what a premium should cost you. They know that you know you're going to have a copay and you're going to have to pay so much.

Speaker 1: (03:14)
So even a copay usually deters you from placing a claim on something. Let's say if your short term rental was broken into this weekend and your TV was stolen and your DVR was stolen and something else, it probably would come to less than a thousand dollars of what was stolen, most likely, even if a couple of TVs were stolen, right? If your deductible is $1,000, you don't want to make a claim with your insurance company. Well, you always, always make a police report because the police report is going to help you write that off as a loss, okay? Because it's been stolen. Just always make a police report very important, but you don't always need to make a claim. And the reason why you wouldn't make a claim as you don't want your premiums to go up, and by paying your copay of $1,000, you're not going to get much over that.

Speaker 1: (04:08)
You only lost less than a thousand dollars worth of stuff. So it doesn't really behoove you to do it right. So most likely you're not going to make that claim. So they know all of these things in advance. They also know by where you live, what the dangers are. That's why certain areas, I e near volcanoes or oceans where they have hurricanes. That's why the insurance is way higher. So when you live in a place like Florida, you're paying a lot more for insurance. Why? Because you're in a hurricane zone and when a hurricane is coming, guess what? They're not gonna make any new policies on that week that the hurricane's coming like, oh, I just thought of this now I need hurricane insurance too late. You're not going to get it. And he said you wouldn't believe the number of people calling. Well, here's another thing. This is why you think of this stuff beforehand.

Speaker 1: (05:04)
So what else happened this week? That doesn't usually happen. There's a lot of people losing income, right? And what did I tell you when I told you about the insurance and the proper insurance to get one reason I love proper insurance. And the reason I don't mind paying $750 a year on some of these properties is because it covers loss of income. When the governor of Florida declared a state of emergency and people canceled their travel, guess what? The houses have a loss of income. So when those people cancel, we actually don't lose any money. You pay a lot for that, but what's really great is you don't have to cry and worry about it because you paid for it. It's actually an expense of your business, but you can't do it. Last minute guys, you can't do it when a hurricane's heading towards you and you can't do it when a fire is heading towards you, you had to have done it before.

Speaker 1: (06:05)
This due diligence needs to be done. As soon as you pick up a property, just know the majority of the time, you will never make a claim on your insurance. It rarely, rarely happens. Even if something is stolen. Rarely do need to make a claim on the insurance, but I'm not gonna mess around with a company like airbnb. I've heard all the horror stories. There's tons of stuff. I mean just Google stuff like or [inaudible] because we're anti Google right now being a, the fact that you know airbnb in a million dollar house fire in California, these people have been fighting airbnb for like two or three years now trying to get the money for their guests starting a fire in their house. The thing is they depend on airbnb's $1 million policy. That's a liability policy guys. It even says it. It's totally and completely at their discretion.

Speaker 1: (07:05)
It even says that and they are not an insurance company. There's that. What do you think is going to happen? There's some really great people. If you go online and you start digging, you'll see how they've been dealing with airbnb. It's like I had this claim and this claim and this claim. We had to jump through this hoop. I lost this much money. They tell you you have to cooperate with them. They give you really short deadlines, like 24 hour deadlines to come up with all the receipts for that property. Do you have all the receipts on your property? Probably not. Probably not. Did you get all this stuff from a store or did you get some of it from a garage sale or maybe goodwill or something? Do you have receipts for everything? Here's the deal. You got to plan for these things in advance, so when you go into a property, you have to have an inventory list of every single thing that you have in that property and that's going to be whether you rent it or own it or you're co-hosting it, it won't matter.

Speaker 1: (08:14)
You need to have an inventory on every single item in that property, and if you can get it, you better have some kind of something like a receipt or a copy of a receipt attached to that in some way, shape or form in the form of a pdf. Each of your locations should have one file with the inventory and all the receipts you can find and pictures of pictures. I think pictures are the best. Take a picture of everything. They can't deny it when they see a picture of it. Take them all in a row. All your sets of towels, all your sets of sheets, all your little knickknacks, all your little books, the clock, the vase, the couch, the chairs, the table, the settings, everything. Take a picture of all of it. Inventory, everything. Find the receipt for everything. If you don't have a receipt, go and take a look at stores.

Speaker 1: (09:14)
What would it cost to replace it? Write it down. Keep it there in one file on a computer, put it on a passport and put it in the air somewhere in a cloud because God forbid you have a fire in your home. The thing is, I know because of losing my house, what a pain in the ass it is to come up with the receipts and replace items that you've lost when there's total devastation. It's not fun, but if you're prepared for it, it's way easier and you don't have to do it. You can hire somebody to do it. You can hire an assistant to go in and inventory everything, right? If you're running a legitimate business, you should have those things anyway. There should be a list. There should be receipts. There should be all of this stuff because these are assets of your business.

Speaker 1: (10:08)
You should have all these anyway, and this should be a part of your sop, your standard operating procedures. When you open any unit, part of your sop is inventory. It's purchasing and inventory, right? So when you're stocking up that place, when you're furnishing that place, there is somebody shopping for you or you're getting it from somewhere and an inventory list needs to be made and then the receipts attached and then the pictures and then a file created and then boom, you're ready to list it. Do you see today is too late to get insurance on your property. If your house is on the beach and a hurricane is added, you're way too late. You missed the boat on that one. That one already came and went and the deal is to right after a hurricane also not a good time. You have to wait until those rates change a little bit.

Speaker 1: (11:06)
Right? But be careful because when you are in these areas, people walk away from insurance because they go, oh, the insurance is way too expensive there. So I'm not going to get it. Your property is expensive there. That's why you get it. You're on the beach. The property is worth more. Everything is worth more because of the location, so yeah, it's like being pissed off because you got a Mercedes and now you've got to pay a higher car insurance. Well, the value of that car is greater. If you're driving, just afford pos. Yeah, your insurance is going to be 50 bucks a month. Lao, you're all pissed off because you're driving this hugely expensive car and you're mad that the insurance is higher. Of course it's higher. You're an idiot if you think it isn't going to be. This is also part of doing business.

Speaker 1: (12:02)
It's an expense. It's a legitimate expense. You are still thinking in your employee mindset. If you're being that cheap where you won't buy insurance because insurance is protecting your business, not just the assets inside, not just the property itself, but your income. This is now your livelihood. How many businesses out there can actually get insurance on their livelihood, their loss of income when they don't get the tourists in there, that doesn't go anywhere, but in the red on their books, they don't get that. We get that cancellations can be covered for us. We're actually really incredibly blessed to be able to get what we do get. Yes, we pay for it, but there's a reason why because we need it because things like hurricanes are detrimental to our business. Huge numbers of cancellations when people can't fly in or they get scared because there's a, a unique hurricane that never occurs only but every year, several times like, well, what letter are they on?

Speaker 1: (13:18)
Do you know? They start with a every year. Pretty much. Yeah, so if they're on, I was like, there wasn't a, B, c, d, e, f, g, h, right before that. It's just so you know, like, but the thing is most people, they don't worry about things until they're occurring and you can't be that person when it comes to insurance. Think ahead and think like a business owner. If you can insure your property where you live and get a loss of income on there too, who it, it is way too important to you and your business to make sure your assets and your income are properly protected. You cannot shoot yourself in the foot when it comes to insurance. You have to use a proper insurance company. For my membership site, I created a huge worksheet for these guys to tell them about all the insurance companies that are here in the United States.

Speaker 1: (14:19)
Most of the people that I have in my membership are in the United States, so I only look at insurance companies that cover the u s and like Canada and Mexico and stuff because most of us have stuff around the United States. You need to look at those. I'm going to make a shortened version, not as long and as extended as the version that we have for our members, but a shortened version that you can just download here and I'm going to attach it to this episode because it's extremely that you start checking it out and you make sure that you're not just relying on airbnb because they're accompany guys. Their job is not to make you money, it's to make themselves money. Insurance companies, however, their job is to protect you and make their company money, so allow them to do their job. Use a proper company.

Speaker 1: (15:15)
I know it's so weird because proper insurance is the name of our company's so, but you want the proper type of insurance. You've got to have the right kind of insurance and there are only a few companies out there that cover short term rentals. Your landlord policy will not cover a short term renter. Your homeowners policy will not cover a short term renter. None of those, none of those. Inviting somebody into your property without having a lease with them is completely different. You give them the keys to your property and they take something, your other insurance companies are going to look at you and go, you have white. Why would you do that? Well, I'm covered aren't, I know you're the idiot who gave them the key. It's like they're not going to cover you so you have to have the right type of insurance.

Speaker 1: (16:09)
I'm going to leave that for you and I'm going to leave you with a thought that, uh, yeah, don't call your insurance guy now and try to get that when you're in Florida. I thought that was so weird because I mean I obviously, I guess, yeah, people are going to do it, but he said that you wouldn't believe the number of calls that they're getting and I said yes. I definitely would. I would believe it because it happens out here too. We have the wildfires all the time. Every single year it gets dry. We have the dry season and there are storms and the storms hit and thunder hits. A tree starts a fire and the fire spreads. It's actually a natural occurrence. Fires. I don't know if most people know that, but it's not something that we caused as people. I mean sometimes yes we can, but naturally not always.

Speaker 1: (16:57)
Take out all the dead areas and then make the ground nice and fertile and add more minerals and stuff and then it recovers and comes back. The forest will come back and a lot of people help it out too by putting saplings out there after a forest fire. And you wouldn't believe in just a few short years how a forest can recover because it's men too. Especially out here in the desert. We see it a few years later and big old trees and you're like, wow, you can still see the burn on the rocks and on the ground and on some of the trees and stuff and you'll, it's amazing to me how nature recovers. It's supposed to. It's just like our body. When we get a cut, we heal ourselves. The earth does the same thing. It's meant to, it's such a great, awesome thing. We can help it along though, right?

Speaker 1: (17:45)
We can be better to it. But I wanted to also on something else that we've talked about, and I did an article and talked about it a while ago in my insurance episode, but here's the deal, there is something called travel insurance. And I think you guys might be overlooking this. It's a great, great business and now there's a company out there that can help you as a short term rental owner, make a little bit of extra money by offering a service to a guest that's going to help them and benefit you with a type of commission. And it's travel insurance. So for years in the travel industry, you know that every time you go traveling there's always, especially, it doesn't matter what card you use or whatever, they're like, would you like insurance? Would that when you buy an airline ticket, would you like to pay an extra $6 for the insurance?

Speaker 1: (18:39)
Most people are, no, no, no, no. We get so used to saying no. Um, when we go to rent a car, it's like, no, I already have my own insurance. You know, if your insurance covers rental cars. But the reason you get insurance is extremely important because things do happen. Trips get canceled, people get sick, people even die. My husband and I and our kids were going on the inaugural cruise of one of the new Disney ships the very week that Kevin's dad died and when his dad passed away, Disney would not give us our money back. But that was, you know, I mean it is what it is. We didn't have the insurance on that and that I couldn't believe it because almost always I've always bought the insurance and I don't even understand or know why. I think because I bought it while we were on another cruise and not sitting at home checking all the little boxes.

Speaker 1: (19:34)
I just must have, it must've slipped my mind. I thought we had it. We didn't. But that always made me think, I'm so super careful about buying traveling insurance because I want to make sure and honestly the 12 bucks or whatever it is when I get an airline ticket to meet is absolutely worth it. If I lose my clothes or my suitcase or my, you know, shampoos and stuff, when I'm someplace they give you a little bit of money when you lose it and you can get yourself started, pick up a few outfits, wait for your bags to be found. If your bags are found great. If they're not, you're not screwed. And stuck with one outfit, which I have been stuck in Hawaii with one outfit on the outfit that I came with and I was working for Tony Robbins at the time. I was, uh, staffing an event there and my bags got lost and they were lost for like two days.

Speaker 1: (20:29)
It was crazy. And everything inside the hotel was super expensive too. It was when I was not as wealthy as I am now. So I just remember going, Oh my God, this is so expensive. And it was terrible. But the thing is, you take precautions and you can help your guests take precautions for travel and you can make a little bit of money by offering these services as a commission. The last episode and in the article I wrote about, I was telling you a little trick that I do when people register on our short term rentals. We have a strict cancellation policy and we're very strict about it. We know that we're strict, it says we're strict, but we make it very clear that we're strict and we don't just let people off, but we also at the same time say, hey listen, we know that things come up.

Speaker 1: (21:23)
If you think anything might happen, we recommend travel guard insurance, you know, just go to travel guard.com and you can get travel insurance that will cover all of this and we'll cover all your travel. If anything comes up, they'll pay for it. You won't have to call us and we won't have to say no to you. There will be no hard feelings because we run a business here and it's a small business and we want to make sure that we don't lose our income and our reservations are made months in advance and so if you cancel closer to the time of your travel, it's impossible for us to fill that. Usually, you know, are close to impossible. So we don't want to have to say no and denied your request and we want you to be covered. So this travel insurance would be a really good thing.

Speaker 1: (22:13)
Well, what's really crazy is now there's this company that they offer to not just allow you to use their company and give you a commission, but they have you create your own website so it looks like your business. So let's say Alpha Beta BNBS has their own travel insurance, your own website. When someone books you send them to that website, they purchase the travel package, which is like I said, very minimal and you get a commission on it and it's offered through your company. And what it is basically is just an affiliate website where you'll get a commission for every insurance policy that is sold. But what's really cool about it is it's branded with your company. It's commissioned out to you, and you can offer it to your guests, your guests will be covered and you don't lose money because you can keep your nice strict cancellation policy, which I absolutely love having.

Speaker 1: (23:22)
So I want you to go online and take a look at this company. It's pretty cool. And if they offer their services in your area, amazing. The name of this company is Pablo Pronto. It's spelled P as in Paul is an apple and then blow like a blowfish. And I actually you say that because Popolo with a blow fish is there their little logo and it's cute. So P A, B, l, O,W and they handle vacation travel insurance, right? So you can go on there as a vacation rental manager. So you can do this. Even if you're a cohost, you can do this. If you have your own business and you earn extra revenue by offering this cancellation protection to guests and owners and it only takes them a couple of minutes to do it doesn't cost them very much money. It covers them, covers you so you don't have a loss of income, which is absolutely great for you.

Speaker 1: (24:26)
It's absolutely great for them. Why? Because even if their flight gets canceled or their luggage gets lost, they're covered. Even if somebody gets sick and they have to cancel, then they are covered, their insurance covers them and your cancellation policy covers you. So you even make a little bit of commission by selling this, selling this insurance policy to them. So it's really kind of cool. The service is free and it offers you a way to make some extra money and upsell your guests with a provided service, something that really benefits them. So I want you to take a look at it and like I said, I'm going to have a link in this episode so that you can download our free insurances. No, that right now the only thing I have on there guys is American companies. I can do one for Canadians if I get enough requests for it.

Speaker 1: (25:28)
I mean actually even if I get one or two, I'll, I'll send you guys out whatever you need. So right now the only requests I get are from other Americans like me. So I don't know. You're out there unless you make yourself known. So if you're from another country and you'd like to know about insurance in that other country that you can't look up, then let me know and I'll, I'll help you out because that's my job. My job is to help you, but I got to know you're there. So the majority of people I know actually all the people I know are from the u s that are in my group and in my membership and that have contacted me online. So I need to know about you if you are not an American. Okay? So let me know. Let me know you're out there. So we've got eight vacation rental insurance companies on this list.

Speaker 1: (26:16)
Like I said, all of them are American and then we threw in Pablo and it's not a short term rental insurance company when you see it. Okay? It's for your guests. So we put like a little thing on there that let you know that this insurance is for your guests. It's a travel insurance. So you understand the difference between the insurance for your business and travel insurance. Travel insurance basically covers your travel expenses. If you were to get sick or have a death in the family or for some reason have to cancel your travel plans. And so how it covers you is the fact that you have your strict cancellation policy. They won't be able to get their money back from you. You don't lose your income because of your strict cancellation policy and they will get money from the insurance company if they have to cancel.

Speaker 1: (27:08)
So it's win win scenario. Do you understand? Great. Awesome. So go check out Pablo. Now the other companies that we have on this sheet are all short term rental vacation property insurance companies. They're going to cover you, your business, your business expenses and even proper insurance covers your income if you have a loss of income. So due to a cancellation or maybe somebody flooded your apartments or whatever they did cause so much damage that you had to cancel the people afterwards and you had some expenses there, those would all be covered if you get that, if you opt out for that. Now remember, whenever you take an insurance policy, just like your car insurance, you don't have to take everything that they offer and you pay for the services that you get. So a lot of times you can use proper insurance and not take the loss of income coverage and it will be less money.

Speaker 1: (28:11)
So if you're living by the hurricane place and you don't want to take a loss of income, which I don't know why you would want to do because honestly loss of income would be the biggest thing I would worry about if I were by the ocean and my sister lived in the keys and all of Marotta during the hurricane. Um, shoot was that two years ago now. Holy Cow. Time just flies. But she was actually in her house and lost that house when they had the hurricane. The ocean came in once when out and came in again. And she actually still has a little PTSD from that. She was taking it just like anybody who lives down in the keys takes, it happens every year. So they jokingly, you know, say getting ready for a hurricane. They take pictures of their shopping cards with nothing but wine and beer and you know, chips and salsa and stuff.

Speaker 1: (29:01)
And you know, here's my hurricanes, you know, a surviving pack. And they joke about it because it happens all the time. So they are super nonchalant about it. But this one was heading right for the keys. We told her to be safe and she decided to stay and she didn't, you know, they got themselves all barricaded inside their house and um, we didn't hear from them for days and I'll tell you, man, I could have killed her when I found her. You're crying and laughing and crying and you're like, I'm going to just smack the crap out of you because you scared me to death because I didn't know if you were alive or dead. And I was worried, worried, sick. Hopefully this, when we find out what happens, um, cause it's just sitting over at Grand Cayman Right now. That's incredibly sad because we love going to The Bahamas.

Speaker 1: (29:49)
There's so much fun. The people there are so amazing and friendly and almost every short cruise. We love taking cruises. I was a cruise specialist for a long time in Chicago. So cruises are my favorite things to do. One of my favorite ways to travel. And so I've been to The Bahamas a lot and I love the people there. They're so sweet, so kind, so nice, so generous. And I can tell you right now, while that's going on, there are good people. They're helping other people out. I just know there are, they're taking care of everyone else there because they think of others first in such a such a great community of people. And so hopefully we can help them up the coast of Florida, hopefully. Um, it doesn't hit us and it doesn't hit as hard, but who knows what's going to happen. But the whole thing is there.

Speaker 1: (30:39)
These nine companies on here, they are vacation rental insurance companies and they will help protect your property. So protect you against fires, against theft, against loss of income. If you want, whatever you can afford, you can pick and choose the coverage you get. But believe me, depending on where you live, you really want to think about that loss of income. So, I don't know if you guys have ever listened to Dave Ramsey. I'm a huge Dave Ramsey fan. Now what's really funny about Dave is he's almost the complete opposite of Robert Kiyosaki because I mean, he's not, oh, you know, they're not exact opposites. Dave is, I don't know, just you know, don't use credit cards and don't do this. And Robert is an other people's money kind of guy. So they definitely have different philosophies. But Dave is super intelligent. Even even with his belief systems, even things, I don't agree with him.

Speaker 1: (31:42)
I can see why he thinks that. And so it, it makes complete and total sense to me. One of the things that Dave Ramsey always teaches people to do is get life insurance. You should have life insurance for your family, right? And most people don't think about it until they get older, which you shouldn't. You should think about it when you're younger, but not just life insurance. What about disability insurance? It's so funny to me that most people don't have disability insurance. Meaning, if you are hurt in an accident or in some some way, shape or form, and you are disabled and unable to perform your duties, whatever business you're in, if you can't perform the duties there, that insurance would cover your income for your family. That's so important. And people always pass it up. They pass it up like it's not even well, it's so expensive.

Speaker 1: (32:35)
You're like, yes, it's expensive, but here's the, if you are a surgeon and you lose your hands, you can no longer perform surgery ever like ever. And so that insurance, if something damaged your hands or even smushed her hands, it wouldn't have to burn off or cut off your hands. I mean, just in some way, shape or form, you couldn't perform those duties. This would protect you. And that's the same thing with these insurances guys. Think about it. You own your own business. Your Business can write these expenses off. So yeah, they're costing you money. So what there things in your business that you can afford now as a business owner that your, your boss would never provide for you and you can now provide them for yourself. Do it. Take advantage of that. If you've got an LLC, especially if your corporation is functioning as a c Corp, make your corporation Pie your life insurance and pay for your life insurance or have a policy for you, make it do that, right?

Speaker 1: (33:42)
All those expenses do, wait. You're like, do it because this is so important for you and your family were anything to happen to you. They would be stuck. They would be screwed. Is everybody on the same level that you are right now? Look how long it took you to get from a to B. Now you're a B and you know you need to get to c and if half your family is still at a and you die, it's gotta take them a while just to get to where you are now. It's like protect those people. Protect those people, especially when they're slow. You've got to protect them. And so I'm begging you to really take a look at these things and understand why they're there. They're there to help you and protect you to help protect you, your family, your business, your assets, your income.

Speaker 1: (34:32)
All of those things will be protected. Do not negate them. Do not throw them away or piss them away or think maybe later when I can afford it, you'll never afford it. You'll never put the money away for it. Just start doing it. It's like saving for your retirement. If you have not opened your Ira yet, honestly, I don't know what to do with you. If you're in front of me, I would just slap you because you need to start your retirement now. I don't care how old you are, I don't care if you're in your 20s my son, as soon as he started working for Chick-fil-a, first thing I did was say, you can get a Roth Ira right now because you still are poor, which is great. You haven't made, you know, above the maximum amount that you can make so you can still get a Roth Ira.

Speaker 1: (35:20)
Yay. And not only that, the only thing you can contribute to an IRA is earned income, meaning money that's coming in from a W2 that's being paid to you. So that's fantastic. He can take an front-load, all his money, you know, up to a certain amount into his IRA legally. This is a fantastic time for him. Any time is a fantastic time. Now here's the deal. If you are already self-employed and you say, oh, Whoa, great, in order to open a Roth Ira, you cannot have made over $135,000 okay? Your gross income had to be under $135,000 so if you've made over $135,000 in one year already, then you can no longer open a Roth Ira. You have to open a traditional IRA. All right? The difference between a Roth Ira and a traditional IRA is just the way they're taxed. That's how you want to be taxed.

Speaker 1: (36:30)
You want your money taxed before you put it in, not as you're taking it out, okay? You can put into your IRA as an individual about up to $500 a month and you should be doing that. And I don't care how much you're making, I don't care if you're a little kid, make it 1000 bucks a month. Put that $500 away every single month because especially when you're young, you're not gonna miss it too much. Then just pretend it's taxes and that wasn't there and just keep working. Right? But here's the deal. Get into that practice as soon as you possibly can. My husband and I still have that money taken out each and every month and put into our IRA automatically like a bill. It comes out and because we're both over 50 I can't remember what age it started, but his was being over 50 and I think my, I think it is when you're over 50 you can contribute a little bit more, right?

Speaker 1: (37:31)
You get to add up to a thousand dollars or something to that amount. Do it, do it because you are just robbing from yourself. If you're not saving for your future, that money, it's up to you to save it for your future. And if you're spending it now, you're really robbing from yourself, just yourself in the future. So as an older person retiring, do you want to look back on your younger self and say, Hey kid, thanks for thinking of me and taking care of me so I can retire in this nice place wherever I'm at, right? Or do you want to be looking back at yourself and going, I'm going to go back and get a time machine and kicked that kid's ass because that's selfish. Sob didn't save a damn dime for me. And look at me struggling. Now which scenario do you want to be thinking about?

Speaker 1: (38:26)
Right? Take care of your future self. No one else is going to take care of you. It's not the government's job to take care of you either. And if you are, you're listening to the wrong damn show. There's got to be a poor victim show out there somewhere. This is not that victim show. This is the place where you come to know that you have ultimate power and ultimate control over your future, over you. Everything you get in this life is because you manifested it, you made it happen. The circumstances and the lessons that you learn are all dictated by you. I know that really sucks, right? The first time I heard that, I remember somebody who said, you know, Michelle, you know you picked your parents, you picked to come here, you picked all these things that you are going to go through. Everything was chosen by you.

Speaker 1: (39:17)
And I said, if I did, I was drunk and it was on a dare. I go, but here's the deal. Everything is a lesson guys. It really, really is. And when you see people repeating the same thing, the same patterns over and over again, I always get the same kind of men or I always get the why because you haven't learned the lesson. Learn the lesson and move on because honestly you get exactly what you want and you can break out of that pattern really easy. All it takes is one decision. And I love those stories. I think I've talked about it a million times, but Lisa Nichols story, I think that one resonates with me the most because she's such an amazing story teller. Watching her talk about when her son was born and she was putting these dish rags on him as diapers because she was so broke, she couldn't even afford diapers and she just slammed her foot down and started crying and said, this is it.

Speaker 1: (40:16)
I will never be this poor again. Boom. There are ripples that go out into the universe. When you do that, when you make a decision, boom, the ripples happen because you change your destiny at that very moment. You make the decision and you follow through. That's when change happens. That's when you break those old patterns. That's when everything happens. That's when my mom left my dad, so there was all of this abuse cycles and cycles of abuse, right? There's all this abuse and then boom, what happens? One day she makes a decision, I will not live like this anymore. Boom. The ripples happen spread throughout the universe and everything changes. That's what you need to do in your life. Those are the changes you need to make occur. And so now you're in control. You're in control of your own business. Be a business owner.

Speaker 1: (41:22)
Take care of those employees and whose employee number one you are employees zero zero one baby. You are the first employee in your business. You get the best number and guess what? You get your healthcare taken care of. If you want, your company can pay for that. You get your life insurance taken care of. If you want, you get to pay them to pay for that, right? You can tell your company what the heck to do. They can pay for your travel. They can pay for the lease on your car. Whatever the hell you want. You are in charge of your own business. Now obviously don't do shit you can't afford like, right? But make sure that you're making ample room for the things that are necessary in your life and in your business. So don't be spending frugally on, you know, taking everybody out to eat for lunch every day.

Speaker 1: (42:17)
Instead, use that money to be paying for your life insurance policy. You know, things like that. Just make good decisions with the money that you're making and decisions that will benefit you and your family in the long run because you've got to be the one who takes care of yourself and you've got to plan for this stuff. You can't just wait for a damn hurricane before you go buy insurance. You gotta do it now. Remember to take the inventory too and get those receipts and take those pictures and make a little file. Insurance is super important and when there's a hurricane, it's already too damn late. So do me a favor. If you haven't already, please go on to iTunes and give us a five star rating. I would absolutely love and appreciate that if you haven't gone onto our website, I would appreciate that too.

Speaker 1: (43:07)
There's a lot of free gifts on there. You should be on there getting some of those free gifts and download on this episode. Download that free sheet that will give you all the information about the insurance companies for your short term rentals and the one Pablo insurance company where you can create a website for yourself and your company that you can offer to your guests and create a little extra income. Yeah. And protect them at the same time and you, so that's amazing. I love that. So anyways, I wanted to say, have a great day. God bless you all. We'll talk to you next week. Go and grow. 

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