314: [Fadi Habib] Ai Review
Today, we're diving into the world of the sandwich generation and how to break free from the paycheck-to-paycheck grind. If you're juggling braces for the kids, saving for college, and keeping an eye on your parents' care costs, you're not alone! We chat with Fadi Habib, who shares some smart strategies to help you build real wealth instead of just getting by. Forget the hustle of trading time for dollars—it's all about shifting your mindset to become an investor, where your money works for you rather than the other way around. We’ll bust some myths about quick riches and highlight four key pillars you can follow to navigate this financial rollercoaster, putting you on the path to financial freedom. So grab a snack and settle in—it’s time to rethink how we approach investing and wealth building!
Takeaways:
- The sandwich generation faces unique financial pressures, balancing child expenses and elder care costs.
- To build wealth, it's crucial to shift from being an employee to becoming an investor.
- Controlled risk is key; successful investing hinges on managing emotions and avoiding fear-driven decisions.
- Investing isn't a get-rich-quick scheme; it's about consistent, disciplined strategies over time.
- Practicing with paper trading helps you learn without financial risk before investing real money.
- The biggest part of successful investing is psychology, which can make or break your financial journey.
Links referenced in this episode:
• legacywealthbuilderacademy.com
Check out more episodes at https://aboutthatwallet.com
Episode 314 Ai Review
Transcript
Welcome to the deep dive.
Speaker A:Today we're tackling something really pressing for a lot of people.
Speaker A:If you're maybe paying for braces and saving for college, but also, you know, thinking about mom or dad's future care costs.
Speaker A:Yeah.
Speaker A:You're likely part of the sandwich generation.
Speaker A:Your time's stretched, your money's pulled in multiple directions.
Speaker A:So we need smart strategies.
Speaker A:We're digging into episode 314 of about that Wallet, specifically, the great advice from Fadi Habib on how this generation can actually build wealth, not just get by.
Speaker B:Yeah.
Speaker B:And the first hurdle, it's fundamental, really, is how most people earn money.
Speaker B:The source material points straight to Robert Kiyosaki's idea, the cash flow quadrant.
Speaker B:Most folks are ease quadrant employees.
Speaker B:You trade your time hours for dollars.
Speaker A:Basically, and the system feels stacked against you there.
Speaker B:Exactly.
Speaker B:The government gets its slice first through taxes, and you have almost zero ways to legally write off expenses related to earning that income.
Speaker B:It makes getting truly wealthy, well, incredibly difficult.
Speaker A:Okay, so that time for money trade, it's not just inefficient, it's almost designed to keep you, you know, running in place.
Speaker B:Pretty much, you're paying retail on your income.
Speaker B:Essentially, the goal, the shift we need, is moving to the I quadrant investor.
Speaker A:Ah, the investor.
Speaker A:So that's where the leverage comes in.
Speaker B:Precisely.
Speaker B:Investors use other people's time, other people's money, and crucially, the they unlock tax advantages, things like depreciation, writing off legitimate business expenses.
Speaker B:It's a different ball game, which is vital.
Speaker A:If you're sandwiched, you don't have more time.
Speaker A:You need your money working harder using systems that leverage capital.
Speaker B:Right.
Speaker B:It's about aiming for financial freedom, not just a slightly bigger paycheck each month.
Speaker B:Which leads us nicely into a big myth we need to bust.
Speaker A:Let me guess, getting rich quick in the market.
Speaker B:You got it.
Speaker B:All the hype around day trading for flipping crypto, it's often sold like a lottery ticket.
Speaker B:A quick win.
Speaker A:But the source material is clear.
Speaker A:Investing isn't the casino.
Speaker B:Absolutely not.
Speaker B:Those rapid trades, that's often just fear or, you know, FOMO driving decisions.
Speaker B:It's a fast way to lose your capital.
Speaker A:Okay, so if it's not gambling, what's the actual game?
Speaker B:It boils down to managing roi, return on investment versus risk.
Speaker B:They're two sides of the same coin.
Speaker B:You can't really have one without considering the other.
Speaker B:The AIM is controlled risk.
Speaker A:Controlled risk.
Speaker A:And the source mentioned a specific number, a potential ROI.
Speaker A:24%.
Speaker A:That sounds, well, pretty high.
Speaker B:It does sound high.
Speaker B:And it's not typical passive index fund returns, let's be clear.
Speaker B:But it is achievable with disciplined active investing.
Speaker B:We're talking about a sustainable rate that if you hit it, doubles your money roughly every three years.
Speaker B:That's powerful compounding.
Speaker A:Okay, but how, how do you get that kind of return without taking massive risks, especially if you're busy?
Speaker B:It comes down to being discriminatory.
Speaker B:You're not buying lottery tickets, you're buying pieces of actual businesses.
Speaker B:You have to look under the hood.
Speaker B:Is this company actually making money?
Speaker B:Think Apple versus say BlackBerry.
Speaker B:Now are the fundamental solid retained earnings cash flow.
Speaker A:So due diligence, not just chasing a hot stock tip.
Speaker B:Exactly.
Speaker B:If the business isn't healthy, you're speculating, plain and simple.
Speaker A:Right, that makes sense.
Speaker A:So for the busy person, the sandwich generation member who needs a framework, the source laid out like four pillars to get started safely.
Speaker B:Yeah, four key things.
Speaker B:First is mindset.
Speaker B:You have to accept investing as a skill, like learning medicine or law.
Speaker B:It needs real study and practice.
Speaker B:You can't just wing it.
Speaker A:Okay, mindset first.
Speaker A:What's pillar two?
Speaker B:Pillar two is absolutely critical for managing risk.
Speaker B:Start with paper trading immediately.
Speaker B:Use a free simulation account with, you know, monopoly money.
Speaker B:This lets you learn, lets you fail, lets you make all the rookie mistakes without losing a single real dollar.
Speaker B:Only put actual capital on the line after you've proven you can be consistently profitable in the simulation.
Speaker A:That seems like a no brainer.
Speaker A:Practice before playing for real stakes.
Speaker B:Pillar three, learning and mentorship.
Speaker B:Look, YouTube is great for information, for knowledge, but it doesn't give you feedback on your specific mistakes.
Speaker B:You need someone, a coach or mentor to watch what you're doing, point out your blind spots and help you actually implement the knowledge correctly.
Speaker B:Knowledge isn't enough.
Speaker B:It's about correct application.
Speaker A:Right.
Speaker A:That feedback loop is missing if you just watch videos.
Speaker A:Okay, and the last pillar, the fourth.
Speaker B:Pillar, kind of puts it all.
Speaker B:Understanding the breakdown of success.
Speaker B:The source suggests it's maybe 10% strategy, like your buy sell rules.
Speaker A:Yeah.
Speaker B:Then 30% is risk mitigation, position sizing, stop losses, that sort of thing.
Speaker A:Okay, so that's 40%.
Speaker A:What's the rest?
Speaker B:The biggest chunk?
Speaker B:60% is psychology.
Speaker B:Managing your own head, Controlling the fear that makes you sell low and the greed that makes you buy high.
Speaker B:That emotional rollercoaster is what wipes most people out.
Speaker A:60% psychology.
Speaker A:Wow.
Speaker A:Okay, so wrapping this up for the listener, what's the big takeaway message?
Speaker B:It really comes down to action over analysis.
Speaker B:You can research forever, analyze things to death.
Speaker A:That's analysis paralysis.
Speaker A:Yeah, I know that feeling exactly.
Speaker B:Especially when you feel like you have so much responsibility, like the sandwich generation does.
Speaker B:But success comes from doing, taking action.
Speaker B:Even imperfect action accelerates your learning way faster than just reading one more article.
Speaker A:Make mistakes, learn, adjust, keep going precisely.
Speaker B:And maybe a final thought to leave people with something a bit provocative from the source material.
Speaker B:Real successful investing.
Speaker B:It should feel boring.
Speaker A:Slow, methodical, boring, not exciting.
Speaker B:If you're feeling an adrenaline rush when you click buy or sell, you're probably doing it wrong.
Speaker B:That's speculation.
Speaker B:That's the casino mindset.
Speaker B:Creeping back in Investing well is often like watching paint dry until one day you look up and wow, your account has grown significantly.
Speaker B:It's the slow, steady wins the race.
Speaker A:That's a powerful reframe.
Speaker A:Or boring is good.
Speaker A:Okay, so you've heard the framework, the insights from Fadi Habib via About that wallet.
Speaker A:The tools are there.
Speaker A:Now it's about taking that first step, that action.
Speaker A:We really encourage you to listen to the full episode for even more detail and examples.
Speaker A:Share this deep dive with another friend who's maybe feeling that sandwich generation squeeze.
Speaker A:And hey, if this helped clarify things for you, we'd love it if you'd leave us a five star review.
Speaker A:Thanks for tuning in.
Speaker A:We'll catch you on the next deep Dive.
