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Mindset & Money | Create More Than You Consume

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Hosted by
Mike Ayala

On this episode of Investing for Freedom, Mike discusses adopting the mindset of “I need to create more than I consume.” Mike goes into detail on why shifting to a place of creation can benefit you and give you a new drive to reach your goals. Enjoy!

“If you just shift the mindset, you’re going to feel less constrained by a budget. And your mind’s going to go to work in the universe, the world is going to go to work on helping you create versus consume.”

HIGHLIGHTS:

0:00 – Intro
0:53 – We’re told that in life we have to spend less than we earn, but what if instead, we focus on creating more than we consume?
1:43 – Mike and Kara aren’t concerned about what Mike is earning, but instead Mike focuses on how he creates more value and wealth
2:58 – You decide what your budget is, and deciding a budget is showing you what you lack and what restricts you
4:33 – If you can learn how to create more than you consume, you approach things from a place of creation rather than a place of lack
4:50 – What are you focused on?
7:22 – Mike discussed this mindset and how tax benefits fit in
7:46 – Instead of asking yourself how you can spend less and earn more, start asking yourself what you can do to create value?
8:35 – Anybody who’s doing well right now is creating

FULL TRANSCRIPTION:

Thank you for joining me on the Investing for Freedom podcast. I’m going to keep this one short and sweet today. But I think you’re really going to enjoy it. And hopefully, you know, some of you have thought through this already, and for those of you that haven’t, hopefully it helps.

So, what we’re talking about today is creating versus consuming. And I know we’ve all heard the saying or the concept that in life we have to spend less than we earn, right? That’s like the magic financial teaching that most of us live by. The way to become successful in life is to just simply spend less than you earn. And while conceptually I get it. And I think that’s true. I want to shift this on you a little bit. How about if we talk about creating versus consuming? So instead of spending less than we earn, how about if we create more than we consume?

And those little things, and I know you might say, Mike, these are just semantics. And I get that, but I’m telling you, this has been probably the single differentiator in my life. And Kara’s life as well. And our success. We’re not constantly focused on spending less than we earn, because I don’t really focus on necessarily how much I earned first and foremost. I’m always focused on how do I create more value? How do I create more wealth? And it’s funny because I’m sitting here looking at my vision board, which you guys can’t see, obviously, cause you’re listening to me on audio. But when I’m looking at the vision board, it’s funny because there’s never anything that we put on our vision boards about spending less.

We don’t put a number on our vision board that says decrease costs by 30%. No vision boards are always bringing us into a realm of creation and abundance and how do we achieve more out of life? And by the way, I’m not telling you that you shouldn’t live within your means or your budget. One of my favorite books, The Richest Man in Babylon, one of you know, I don’t know if you guys have read that, but if you haven’t, you should pick it up by George Clason and it goes through these different parables. And then there’s the five laws of gold and the seven laws of golden, no matter which law it is. One of the things is budget thy expenditures. And in the parable, they’re, you know, they’re telling this story and everybody’s up in arms. Like I don’t want to be bound by a budget.

And I used to kind of think that way and still to some degree I do. The thing is, we set that budget, like who decides what your budget is you do. And if you don’t think about a budget, the reason why most of us don’t want to think about it is because it shows us our lack. It shows us where we need to spend less than what we’re currently earning, because we haven’t put in the work, because we haven’t put in the creative time. Because when we first start talking about that budget, it usually comes from a standpoint of, Hey, we’re spending too much money. We have too much debt on our credit cards and we need a Dave Ramsey.

So, the reason why we don’t like talking about that is because it’s usually like it usually confines us, it restricts us. It forces us to be more frugal. And again, I’m not saying that there’s anything wrong with any of that, but if you begin to shift your mindset more into creating versus consuming, it’s the same principle. How do we create more than we’re consuming? Which is the same thing as how do we spend less than we’re earning, right? Well, no, it’s really not because we’re shifting the focus from spending less than what I make. My paycheck is only a thousand dollars. And right now, I’m spending 1,050, we’re coming at that from a place of lack. And again if you need to do that, if you need to create a budget and you need to get there, do that because the only way to start investing and the only way to begin achieving financial freedom is to get your spending under control. I get that. But instead of saying that we have to spend less than we earn, right? Let’s start talking about how do I create more than I consume. So again, it’s the same thing. It’s just from a different approach.

I know it’s true and it’s sound advice, but if you can learn how to create more than you consume and shift that mindset from spending less than you earn, we’re going to start approaching this from a place of creation versus a place of lack. Here’s another way to talk about this. You might be saying, Mike, what’s the difference? Well, here’s my thing. What are you focused on? We don’t want to be focused on how much we don’t make or how short our paycheck is every week or the gains that we need to make. What we need to be focusing on is if we’re, if we’re consuming too much, that, and we’re not earning enough, that’s a negative perspective. But what if we could just shift that and say to ourselves, how do I create more than I consume.

A long time ago, I think it was a podcast, maybe it was just an Instagram video that I did, but I was talking about making money versus creating money or earning money versus creating money. And a lot of times, you know, it’s interesting that we even say the term I make a hundred thousand dollars a year. You don’t actually make a hundred thousand dollars a year, you earn it by trading your time for money. Now, when we start saying, make or create, and I’m not going to go too far into this, but when we start creating wealth and this is the whole cashflow quadrant, if you haven’t picked up Kiyosaki’s book called The Cashflow Quadrant, it really changed my mindset. Not because of the principle necessarily of, you know, there’s employee, self-employed, big business owner and investor. So, there’s basically four quadrants, but on the left side of the quadrant, these are basically people that earn money. So, we trade our time for dollars, employees, and self-employed. We trade our time for dollars.

On the right-hand side are the big business owners and the investors. And in the right side of the quadrant, we create money, or we make money by leverage really using other people’s time. Other people’s resources by using AI, by expanding on the left side, we’re trading literally our time, which is our most precious resource for money. So, I trade an hour. And if I’m worth $35 an hour, I get paid 35 bucks. If I’m worth $75 an hour, I get paid $75. If I charged $350, I’m a lawyer or whatever, I get paid $350 an hour. So, we literally earn money by trading our time for dollars. On the right-hand side, we create money by having five employees, 10 employees, 30 employees, and leveraging their time and trading that for dollars or you know, building a product, whether it’s software or anything else that costs us $35 to build. And we sell it for $70. So, we’re literally creating wealth where or excuse me, we’re creating wealth. We’re making a product, we’re making revenue out of other people’s times.

So, this is a big difference. And by the way, all those tax benefits lay in that right-hand side of the big business and the investor, because the government wants us to expand. They want us to create more wealth. And so I don’t want to over-complicate this, but if we can just shift our mindset from creating versus consuming, instead of I need to spend less than I earn, you’re going to really start seeing a shift. So, here’s my question. And I’m going to leave you with it.

Instead of asking yourself, how do I spend less and earn more? What if you start asking the question, what can I do to create value? What kind of products could I create? What kind of courses could I create? What kind of business could I create? How can I use, how can I create leverage and borrow a thousand dollars and turn it into two? How can I create leverage and buy a piece of property that cash flows a thousand dollars a month and borrow 80% of that, or even borrow the down payment? And then 80% of that. So how do I create revenue for myself? How do I create a cashflow? How do I create a business? How do I create programs? How do I create courses? How do I create content? If you look right now, if you look around you, anybody who’s doing well is creating something. They’re creating jobs, they’re creating programs. They’re creating courses. They’re creating new businesses. They’re creating meals because they own a restaurant. They’re not trading their time for money. And they’re definitely not looking at how do I spend less and earn more.

And again, I’m not, I don’t want to get into semantics here, but like I’m saying, if you look at the vision board, there’s nothing on the vision board that says hey, this year, I want to spend $10,000 less than what I did last year. So, I can decrease my credit card debt. It’s not about that. Vision boards are about creating and yes, we need to consume less than we create, but I am going to challenge you. If you just shift that narrative, if you just shift the mindset, you’re going to feel less constrained by a budget. And your mind’s going to go to work in the universe, the world is going to go to work on helping you create versus consume. And then in-turn, I mean, obviously we’re always going to have to spend less, even in business, we have to spend less than what we sell, or we wouldn’t make a profit. But if you just shift from spending less, what I earn, I’m spending too much money, that’s a negative focus. To creating wealth, to creating opportunity, to creating leverage. I think it will really shift for you. So, hope you enjoy that.

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