Today I’m sharing an interview that was originally published on The Screw The Nine to Five Podcast, where I chatted with Josh & Jill Stanton about how to keep the money you make.
Josh and Jill are the co-founders of Screw The Nine To Five — their slice of the Internet where they help transform unsatisfied employees into dangerously-successful entrepreneurs. When they’re not CEO’ing they can be found traveling the world with their little guy, Kai, laughing at pug memes, or indulging in a tall glass of something stiff.
Why PR? – Learn more about the pros and cons of moving to Puerto Rico.
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Personal Capital – a great tool to track and manage your overall finances
3 Value Bombs
1) Always keep an eye on your bottom line — how much money do you actually keep at the end of the day?
2) Make sure that every dollar that’s being spent and received is meaningful.
3) You must have a system in place to make sure that the ROI is working in every part of your business.
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(click the time stamp to jump directly to that point in the episode.)
Today’s Audio MASTERCLASS: How to keep the money you make: JLD on The Screw The Nine to Five Podcast
[04:32] – John talks about keeping more of the money you earn. Most entrepreneurs are typically quite terrible at keeping the money they make.
- It’s hard for entrepreneurs to keep the money they make. Whenever they have a little extra money, they look at the money as something that they can do something for them. It can be for ads, growing email lists, and other things that can help grow the business.
- It’s important for entrepreneurs to invest in themselves.
- Always keep an eye on the bottom line — how much money do we keep at the end of the day?
[06:45] – How important are income reports?
- Know what’s trending up or down and why – whether that be for profit or expenses – so you can always be able to adjust as needed.
[10:15] – Is it recommended that people publish an income report?
- It’s important that you as an individual or as a team know what’s happening in your business.
- It helps businesses protect themselves from any downfall in the market that may happen in the future.
- You don’t have to publish it, but walk through the steps of actually looking at your numbers every month so you keep your finger on the pulse
[12:10] – Has there been a time when John thought he spent way too much on something?
- It’s okay to see that you spent too much on something, but you have to catch it quick.
- You must have a system in place to make sure that the ROI is working in every part of your business. If not, turn it off, then try something different.
[13:10] – In what area do most entrepreneurs waste their money?
- Ads is one place; they may have a social media marketing team to run ads for them, but the ads aren’t converting.
- Another area that people spend a lot of money in is having a big team.
[16:56] – Does John think entrepreneurs pay too much for their team members?
- There are different skill levels for team members.
- If you’re going to have people representing you or your brand, you need to be paying top dollar for great people to do that.
- Know your goals and the kind of the business that you want to create.
[20:03] – John talks about having the highest possible profit margins, even if that means paying more taxes.
- Keep as much money as possible after everything so you can use that money in a lot of different ways that can benefit your business and lifestyle.
[24:54] – Puerto Rico and the 4% corporate tax
- Puerto Ricans don’t pay federal tax.
- For them, it’s better to get 4% of millions of dollars than 30%-50% of zero dollars.
- When entrepreneurs move to Puerto Rico, they can spend more than what they’ve been spending in the States because they have free capital.
[29:37] – What sort of opportunities come along that you jump to straight away?
- John invested some of the money he would have paid the government into cryptocurrencies.
- He invested the same amount in businesses that could grow into 8 or 9 figure companies.
- He also invested in gold, the stock market, treasury bonds, and other big bets that could improve his net worth decades from now.
[32:16] – Who would be a good fit for Puerto Rico’s Act 20?
- It is a good fit for people who are adventurous and are willing to come down to an island in the Caribbean and make a go at it.
- If you are netting $200,000 a year after all the expenses, a move to Puerto Rico can save you $70,000 to $100,000 in taxes.
[36:15] – The importance of diversifying and John’s recommendation when it comes to investing.
- The best way for you to invest is called “dollar cost averaging” into index funds.
- Index funds are a low-cost diverse set of funds where you’re able to invest a tiny percentage into the total market index funds.
- If you are consistent with your investment, you may be doubling your money every seven years.
- When you invest, you’re protecting yourself from yourself.
- It’s a great tool. It’s like keeping your finger on the pulse.
- It provides peace of mind. You may have many financial accounts and have no time to check each of them. Personal Capital can help you catch hacking and identity theft as soon as possible.
- Personal Capital gives the right motivation to want to see that chart trending up.
[44:31] – John’s parting piece of guidance
- Why PR? – Learn more about the pros and cons of moving to Puerto Rico!
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