Video Transcript Below:
Hey guys! This is Kenny from learnhowtoprosper.com
And I want to take just a minute to walk through something that I think is really critical to becoming prosperous and that is how we think about time and planning and how that correlates with whether we’re broke or successful.
Now, let me show what I mean here.
So, today I’m going to talk a little bit about the impact of short vs. long term thinking, now, I’d say thinking and planning as well.
Now, what we mean here and you’ve probably noticed this maybe in your own life I certainly have in mine is that if you look at a person that is destitute, you’re looking at someone who is probably thinking only about one hour to maybe three hours ahead.
Basically, they’re just thinking about their next meal; what are they going to eat, how will they survive.
They’re looking for that…if you’re looking for someone who’s broke so maybe not destitute, maybe not living on the street but pretty much broke doesn’t have a couple extra dimes to rub together.
They probably look day to day, so maybe they look 8 to 16 hours ahead.
Now, if you look at what I would call the impoverished and so this is someone who is considered perhaps…
Well, we might say poor not destitute, not broke but living just in a very short time window.
So, usually when you’re looking at poverty I’m also looking at what I would also call the lower middle class in many respects especially in today’s world they probably look maybe one week ahead.
They go from one week to week maybe and then fourth.
The fourth category of people is what I call the proper middle class.
This is where a lot of folks find themselves today and a lot of the middle class ia really living what I’d call paycheck to paycheck.
And the reason why they’re just barely getting by and the way this happens is that these individuals will spend every extra penny that they get.
For example, let’s say they get a raise to three percent raise or maybe they get a bonus.
Instead of putting that away and creating some margin in their life between their earnings and their expenses, instead of allowing for some margin here they pretty much just they spend it.
They’ll go get a more expensive car.
They’ll go and get an RV.
They’ll go buy some property like a timeshare and so they’re always just living, just paycheck to paycheck and that’s no place to live.
When you’re in a situation where if you were to lose your job you’re your one stream of income and now you’ve got nothing or you could be out on the street or you can foreclose.
Go for bank can foreclose your home within two or three months that’s no place to live, no way to live is what I call the upper.
I’m going to say, this is the upper middle class.
Now, in the upper middle class a little bit more forward-thinking.
They’re thinking a little bit further down the road maybe three to six months.
The wealthy and for our purposes you know there’s probably people who are you know make maybe a quarter of a million to a million dollars a year or more.
They’re looking one to two years ahead and they’re what I would call the super-rich, so this is the multimillionaire.
They’re five- ten- twenty years ahead, right?
Now, I’ve observed this in my own life and in the life of others that if you can start thinking now change your thinking from beyond a shorter window.
So for example, if you’re just living paycheck to paycheck take the time.
If you’re in this category for example, take the time to think like where am I going to be one year from now two years from now.
Try to get, try to move up here so you’re looking two to three months and then one to two years.
Then, eventually you want to get into this range.
Once you can start thinking three to six months, one to two years ahead, then you can start applying certain practices that will ensure that you have way more wealth in your life and in the way that typically people get broke, the way that people end up destitute broke and impoverished in these areas.
Maybe even to some degree is the middle class it’s not on how much that they spend per say it’s on the lack of saving or preparing or planning in advance. Like they say is it’s not how much you make, it’s how much you spend.
Remember this, how much you spend is the key on how much you make that how much you spend because if you’re thinking ahead you can take those funds and either… and you’re saying well the place I want to be two to three years from now is I want to have $20,000 cash in the bank is a rainy day fund.
I want to have one or two streams of income, maybe I’ve got a rental property.
I want to have all my debt paid off.
You start looking ahead so that you’re not just living in the moment because the most dangerous place to be is just living in the moment when all you’re thinking about is what I can do now, what I can eat now, what kind of recreation I can do now, what I can have right now.
Instead of thinking well if I can put off for today something that I can gain tomorrow…
Time zips by and before you know it, you’ve arrived at that three to six-month mark and now you have your credit cards paid off right.
Then, you’re paying down your mortgage. I really want us to focus on this area and move in this direction right that’s really important that we move in this direction.
The way to do that today is to start the thing that you can do right now.
I want you to take just a minute and think about where do you want to be six months from now.
If that’s too far off then think… where am I going to be in one month and then just add time to that… six months, then look out one year, then two, then five.
Then five and then ten plus but if you need to, start right here.
Maybe right here and just start focusing on that one to six-month timeframe and once you’ve thought about that then you can set the goal right.
It’s like okay I’m going to knock off credit card debt number one right going to maybe spend less.
Remember it’s not how much you make, it’s how much you spend so you can think about ways to here at least in the short term and here’s something that really helps to look and think long term as if you can visualize in your mind that thing that you’re going to achieve at the end of that time frame.
So for example, if you’re looking one month ahead just think about how good it’s going to feel when you have an extra $50 or $25.00 that is in the bank.
Even if you just set aside that in an account you’d be amazed at how good that feels because you want to start to think and get past.
This is what I get now versus what I get later.
In other words, live like no one’s willing to now so that you can live like no one can in the future right.
It’s a delaying that immediate gratification but here’s the thing and you’re maybe perhaps not even delaying instant gratification because if you can think in the now about what benefit you’re going to get in the future.
It helps bridge this gap right, you can think about and visualize having that little extra in the bank.
You start visualizing what it will mean to have that one credit card paid off.
Start visualizing what it will be to have your bills paid off.
You can visualize what it feels like and what it will look and that’s how you start to get into these longer time frames.
Now, I want you to go back and look at those different classifications that we just talked about.
The destitute vs. the broke vs. the impoverished in the middle lower middle class, upper middle class, wealthy and super rich, just go back in this video, pause it and look at it.
Here on the screen and just think about where do you fit right? And what can you do to begin extending your time frame in terms of your thinking and planning.
If you do that, you will be prosperous.
To that, I can guarantee if you’d like to learn more go on over to learnhowtoprosper.com and read more of my posts and if you liked this video go ahead and give it a thumbs up and you can find the link to my blog and to this post in the description box near this video and with that I’m going to sign off.
Make it a great day!