Chasing Financial Freedom

Taking Financial Freedom Into Your Own Hands With Florian Fritz

February 01, 2023 Ryan DeMent Season 5 Episode 5
Taking Financial Freedom Into Your Own Hands With Florian Fritz
Chasing Financial Freedom
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Chasing Financial Freedom
Taking Financial Freedom Into Your Own Hands With Florian Fritz
Feb 01, 2023 Season 5 Episode 5
Ryan DeMent

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On this episode of Chasing Financial Freedom, we have special guest Florian Fritz, founder of the Money Hero Academy and esteemed financial advisor. Hear the story of his journey in creating financial freedom and learn his strategies to bridge the gap between being a passive consumer of financial services and taking control of one’s finances. Get inspired to take charge of your money and create the life you want with Florian as your guide. With actionable tips on improving your money mindset, money management, and money-making skills - this episode will help you regain control of your finances and lead you toward a life of financial freedom!

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Thanks for Listening! Follow us on Tik Tok Facebook and Instagram

Show Notes Transcript

Send us a Text Message.

On this episode of Chasing Financial Freedom, we have special guest Florian Fritz, founder of the Money Hero Academy and esteemed financial advisor. Hear the story of his journey in creating financial freedom and learn his strategies to bridge the gap between being a passive consumer of financial services and taking control of one’s finances. Get inspired to take charge of your money and create the life you want with Florian as your guide. With actionable tips on improving your money mindset, money management, and money-making skills - this episode will help you regain control of your finances and lead you toward a life of financial freedom!

Support the Show.

Thanks for Listening! Follow us on Tik Tok Facebook and Instagram

Taking Financial Freedom Into Your Own Hands With Florian Fritz

[00:00:00] Ryan: Hey guys, Ryan DeMent from Chasing Financial Freedom Podcast. I hope you guys are having a great day today. On the podcast, we have Florian Fritz Florian is the founder of Money Hero Academy, where he is teaching how to create financial freedom by improving your money mindset, money management, and money-making skills.

And we've got a lot to talk about cuz there's a lot of money in there. But I've been able to follow Florian on social media, and I'm starting to see a lot of his posts, and I really like what he's posting and talking about money management and being prepared for unfortunately some down, downside in the economy.

But we'll all talk about that. Florian, welcome to the show. 

[00:00:42] Florian: Brian, thank you so much for inviting me. It's great to be 

[00:00:44] Ryan: here. You're welcome. Great to have you on. So before we dive into everything just share a little background of who you are and what you have going. 

[00:00:52] Florian: Sure. Yeah, as you said, I'm money teacher.

I'm from Vienna, Austria. I started as a financial advisor like 19 years ago, and I found after a few years doing that, I found that I didn't really like how the financial industry is treating their clients, meaning the banks and investment companies make all the money and the clients take all the risk and pay all the fees.

So I didn't like that so much. So I wanted to change and started learning. So we started traveling the world all over to learn from some of the greatest trainers, people like Robert Kiosaki and Tf Ecker and some FA ex fund managers. How to how well strategies work. That work, no matter what's the markets are doing, like up or down or sideways or crazy like they're going now.

So how do you build wealth in those times? And I also learned. how to teach it while I was going through all the education myself. So today I switched from selling financial products to teaching people how they can do it better themselves instead of relying on banks or financial advisors who in the end have mainly their own interest in mind.

What will they sell you? What pays the highest commission, right? At least that's what we did when I was in that. . So I switched from that to teaching people how to take their money into their own hands and work with them on the three pillars of financial success that you manage, that you mentioned already.

Money, mindset, money management, and money making. 

[00:02:26] Ryan: It's amazing. And I'm just gonna go right into Wall Street. Wall Street is basically created a machine. Taking money from us. That's, that's just how it is. I and I'm with you. I think people should be empowered to be able to control their own financial destiny and being able to have the tools to effectively do that.

A lot of us don't, and I know, did you grow up here in the States? I, you, I know you're, I know you're in Europe, but did you ever spend time here in the. 

[00:02:54] Florian: I, not any longer time period, more than a week or two. 

[00:02:58] Ryan: Okay. One of the things here with our schooling system, and it, we could talk about that about in Europe too, is our school systems here stink.

They don't teach people how to be financially literate. So when they leave our public school system, most of 'em don't even know how to open up a bank account, balance a checkbook, which, who knows who's balancing a checkbook nowadays and. being able to know what goes in and what goes out of a bank account that is setting up a lot of people and generations for failure.

And we have a lot of that going on over here right now. 

[00:03:32] Florian: Yeah. That's not just a US problem that's worldwide. We have the same here in Europe and I've been working with people from, I don't know how many different countries in continents. Nobody. Teaches money in school, we don't get any financial education.

And yeah, that's causes huge problems if you don't know how to handle money. Of course people make mistakes 

[00:03:56] Ryan: and it causes them to have a lot of problems down the road where they take out too much credit card debt and it rolls into a bunch of other things, which could lead to bankruptcy and all that great stuff, but it's.

it's disheartening. So on the other side of my business, we're in real estate. We develop affordable housing. But one of the things that we learned along this route, I spent 25 years in corporate America finance. I've touched every financial instrument you possibly can. Is we need to give people the tools like we just talked about, to be financially successful.

And we started a nonprofit last year or year before last called True Community. And that's what it does, is it helps individuals learn. Financial success through tools. And the tools are basically understanding, if you have a bank account, how much do you put in there on a monthly basis, how much you've budgeted for your bills, how much do you have in savings?

And what do you need to allocate for savings, for an emergency fund. Different things to that extent. And then setting them up for success when it comes to their financial future and what they're looking to do. My, my question to you. When you connect with somebody and they need your help, where does this process all start with that individual or that family?

[00:05:07] Florian: Where do we start is usually people don't get what they want because they don't know what they want, . So that's where we start. What would your financial dream life actually look like? What would you want it to be? , what do you want to work? How much money would you like to have? Why do you want to have that much money?

What would you do with it? Nobody actually wants to have a million dollar, just to have a million dollars. , because yeah, what are you going to do with it? Where do you want to work? What, so what kind of choices? What kind of freedom would you like to have? So we start there and. . Once we know what you actually want and why you want it, then we can start working looking at where are you now?

So we can compare. Yeah, if you put in your directions into a gps, you need two points, right? Where you want to go and where you're starting from. Otherwise, it's very hard to find the right way. So we start with those two points. 

[00:06:00] Ryan: How many people when they come to you know where they want to go?

[00:06:03] Florian: Nobody usually . Or very small percentage. That's if I break that down, we start with what PE most people do know, and that's what they don't want, right? What they're sick and tired of, what they're fed up with, what they want to get rid of. People know that. So we start from there.

[00:06:24] Ryan: So you peel the layer of the onion back and you start there. . I guess my question is reverse engineering it. I agree. You gotta start with what you don't want. But if they don't understand where their life is going, how much do you have to work with them on that to be able to get them to that point to where you can help them?

[00:06:43] Florian: That's that process of working through what you, to find out what you actually want to have a couple of. Doesn't take that long. If you start with, okay, what you don't want, okay, now I know what you don't want. I don't want to have all this debt anymore. I don't want to have this stress that I don't know how to pay my bills.

I don't know. I don't want to have this stress that I have no idea how my, if I will ever be able to retire. So if people get rid of that, okay, so what do you want? I want to have a positive bank account. I want to be able to retire earlier. Okay. How does this retirement look like? So dreaming a few goals is not that difficult.

That just takes a few questions, maybe an hour of questions and thinking about it, and then people start, Hemi goes, okay, we, we come back to that again and again to refine and. Get, yeah, get into more details. The more details you have on your goals, the better because people tell me, yeah, I want to travel to whatever Italy.

I say, okay, that's super emotional. Yeah. I want to travel to Italy. Let's go a bit deeper. Okay. Which city, what do you want to see there? What restaurant do you want to visit? What do you want to eat and drink there? So let's describe it in all the details so you'll get some, feel, some emotions. . I like that.

And once you have that and you really want, you really feel it that you want it, and that's gonna be awesome. Yeah. When you, once you're there, how you feel it, then your chances of actually getting it are dramatically higher than if you just say, yeah, it would be nice to travel more. 

[00:08:23] Ryan: Visualizing it, writing it down and making sure that you're checking in on your goals on a daily basis.

So you're filling it. I'm with you cuz that's what I do. Question is, when people come to you, what percentage or the amount, however you wanna look at it, are actually struggling with debt?

[00:08:46] Florian: I don't know, maybe half. . 

[00:08:50] Ryan: So are they only str, is that half only struggling with debt? And if they are, what's the other half coming to you for? 

[00:08:57] Florian: The other half is you can still struggle with your finances without having debt with yeah. That's people who maybe manage it a bit better what they have, but yeah.

Income not high enough or money not working for them. or I have people saying, okay, I'm, I don't know, 40 something 50 now, but, and I do want to retire, but the funds are just not there. I need to do something. So I have those people, and of course the people who have too much debt and yeah, don't know how to get their finances in any order.

But I also have people who actually are earning well, are. Have some money on the side and say, yeah, I do know I should be doing better. And I want, I just want more than I'm having here. 

[00:09:46] Ryan: So you've got a, you've got a pretty diverse background of clients that you help. From that standpoint.

Let's walk down the path of somebody, cuz we deal with a lot of this too, and it's, it could help for the listeners when you have a lot of debt and you're carrying that, what are some typical options, plans or even money hacks that you can help out with to help people get outta debt and start living, debt free and stress free?

Excuse me. Stress free. Yeah. 

[00:10:14] Florian: First thing that I in my opinion, you should do different than from like common common advice is people, many people say everything has to go into debt, and you have to get rid of your debt first. I don't think so. I think you should always keep some money for yourself and.

So personally I had a side business with a partner and I didn't take care of it enough and that partner bankrupted the company and I suddenly had half a million dollar in debt. So paying off half a million dollar and is, yeah, not that easy. . And since I didn't really feel very irresponsible for most of the debt, I defaulted on most of it, but still there's enough.

and what I did the little money I had left just one 2000. I started investing it with higher risk than I advised for usual people. But in that case it might make sense. And by now that invested money is creating investment return of almost passive return for me that helps me pay off the debt.

So I think you always should. Some money of your income and not put it directly into the ad, but invest it and it's gonna help you pay off that later easily easier. 

[00:11:39] Ryan: So how, I guess my first question is, how easy is it to find that type of investment that could help somebody that half a million dollars?

That's a lot of money. So you have to be in a pretty risky investment to be able to pay that. 

[00:11:53] Florian: First of all, you don't need to pay it off in a year. You can't take some 

[00:11:56] Ryan: time. No, I know, but even, I don't know what the bankruptcy laws are in Europe, but here in the States they'll give you plenty of time.

But they're gonna want you paid off in three to four or five years max, and they're gonna charge you statutory interest. So right now prime is six and some change. Right around. 6% on five, half a million dollars, you're talking over $3,000 a month. Just an interest. 

[00:12:20] Florian: Yes. . But but as I said, I'm not paying the full amount and I we have five years to pay it off.

Okay. We are five years to pay it off here. Yeah, still, of course you will have to pay as much as you can, and you start with when you. , several debts. You start paying off the ones with the highest interest, reasonably well, there's actually, there's two strategies, right? One is more the mathematical, the cheapest version, and one is the psychological version.

, the mathematical one tells you, of course you start bus paying off the one with the highest interest. If you have a credit card debt that's charging you, I don't know, 17%, 20% interest, you want to get rid of that quickly. And then you, once you've paid that off, you move to the next one and pay the next one with the next highest interest rate.

The more psychological one is you pay of the lowest debt first because it just, it feels good when you get rid of one and then the next lowest one. It just feels good having less different open positions, right? But always at the same time, take at least a small. Percentage of your money and invest it.

Of course, don't just invest it anywhere. Get some education, right? Learn how you can have in and return on your investment that's higher than your interest rates. 

[00:13:46] Ryan: So where would you suggest somebody to? One, let's start with, what percentage would you suggest for somebody to take out, peel back and invest?

And two, where do they find that type of investment? 

[00:13:58] Florian: What percentage? I think 10% is a good idea to, to take 10% and put that into and pay yourself with that's your money. If that's total totally impossible because of your numbers and your income, go for a bit less, but start anyway. If it's just a couple of dollars, you can start investing with $10 a.

So better doing it with $10 than not doing it at all. If you can do 10%, that's better. What do I use? I teach a strategy that's very safe, including that's using options to get a higher return out of stocks, and that returns about 30 to 40% a year. with very high safety. Of course you can do more risky strategies that would return more than that.

That depends on yeah, personality again, and on the situation, how much risk you're, you can take with your situation. But getting 30 to 40% a year is absolutely possible if you know what 

[00:15:06] Ryan: you're doing. So that's the question. I Options are are something you have to manage, and understand what to do with.

So how can somebody that has no experience at that take advantage of that or be able to get into that space? 

[00:15:19] Florian: With this strategy, I do a five day program, which is one hour a day, not five full days. Where I teach which broker to to use, how to find the right traits, how to place it. And actually it's in this strategy.

it's three to five trades a year, so you actually only have to get in every two to three months and have a look at it. It's not a lot of ti, not very time consuming. like half an hour to an hour every three months on average. It's a very like very basic option strategy. You don't need to. , sit there all day and watch because you might lose your whole money.

That's not what I do in this program because yeah, then you need to train more than those five hours if you want to have higher returns. But I think 30 to 40% is a pretty good start. And as I said, you can learn it in five hours and manage it in one hour every three. , 

[00:16:24] Ryan: and if somebody is not comfortable with that, are there other investment opportunities that you would suggest?

[00:16:30] Florian: Of course, just starting with something very basic. If you go for cost averaging, you can make 20% a year. With that, you can make more. Actually in the situation that we have right now with markets being very volatile and something's being very cheap right now in 2020, I actually made 70% on oil by just cost averaging, meaning whenever it gets cheaper, you buy a little bit.

You don't important part in that is don't panic, right? If you look at your money and you, it looks like you made a loss, then what you wanna do is you wanna buy some more. That works only with things that don't disappear in a recession, right? So when I invest in things that will definitely be there after this is over this crazy times, this recessions, this crisis, whatever you want to call it.

Oil is one of those things. We're gonna use oil after it. Like precious metals, we're going to gold, silver are gonna be val. Copper is gonna be valuable after this. The other I like commodities for it, but you can all we are going still eat, right? If you want to use wheat, we're still going to eat wheat after the crisis.

Eggs. Eggs, absolutely. I don't know how to invest in eggs, but definitely those things work. But also, Stocks of large companies work or of sectors. If you go invest in a whole industry, there's gonna be a financial industry, there's gonna be a healthcare industry, there's gonna be an energy industry after the crisis.

So if you invest in an etf that takes the whole sector, your risk. completely. Losing the money is very low, but you might be able to buy very cheap during that recession. So if we can make a quick example. Do you drink wine? I do. Great. So let's imagine your favorite bottle of wine costs a hundred dollars.

Okay. Okay. And you decide to invest a hundred dollars every month in your. So this month you go out and you buy one bottle of wine and you don't drink it immediately. Okay? You put it in your wine cellar because yeah, you want to have a rest of it before you drink it. Next month oh it drop, the price dropped to $50.

I can buy for my a hundred, I can get two bottles. Okay? So you buy two bottles and you put them in your wine cellar, and next month oh my god, the same bottle dropped to $25. and you buy four of them instead of saying, oh my God, the wine I have in the seller is not worth anything anymore. You go and buy four bottles next month it goes back up to 50 and you buy two more bottles.

Now the price is actually half from where you started, right? You started at 100. , and now it's 50. You bought 4, 8, 9 bottles in total. , which are priced at 50 now. So that's, and you spend a total of $400. We did it for four months, right? . . So you spent 409 times 50 is 450 if you sell them all right.

Now, you made a profit of 12% in four months. Yeah, does this only work with wine? No. , no. It also works with beer and it works with stocks and funds and commodities. And yes, this can actually, even with this pricing example, yeah, that it dropped by 75% to 25 and comes back up to in four months, that can happen.

My oil example where I did 70%, that was just six months. 

[00:20:08] Ryan: Or you can, or we can talk about Tesla cuz last year it was down 66 or 68% and it's already up 40% this year. 

[00:20:17] Florian: Absolutely. I personally, I wouldn't do it with Tesla because. more emotional stock than ha has anything to do with value in numbers.

[00:20:28] Ryan: Just the value is what I'm talking about is the down Yeah. The downside. And then you could ac you could cost average it. I mean it's absolutely any of those stocks. Today yes. A another emotional stock, if you wanna call it that as Ford, Ford came out and said they're following suit with Tesla to reduce their prices on their EVs, all of a sudden, you're starting to see a dip in Ford.

Not saying to buy Ford, I'm just. There's an opportunity. Another one I, it's just everybody's different. I get it. So I have to ask the question on the opposite side of this, the least sophisticated investor, least sophisticated consumers, some people are just not gonna wanna invest in real estate, or sorry, in the stock market options or even ETFs.

Are there anything else out there that they could potentially invest in or work through so they could actually get some. . 

[00:21:14] Florian: As you said, real estate is definitely an option. You can even invest in real estate without buying any, you can rent out in an apartment, in in a city where some, where people move to and rent it out as an Airbnb.

, you can, without buying anything, you just need to invest a little bit of making it nicer and taking some good pictures for advertising it so you can make money that. 

[00:21:39] Ryan: Airbnb arbitrage. But a lot of the, at least here in the States, a lot of the landlords and management companies have cracked down on that.


[00:21:48] Florian: Doesn't work everywhere. You have to find the right places. You have to, first of all, before you do anything, get some education and do it. Do it right. Don't just test out and you'll just lose money. So first of all, learn how to do it. That's one way. Other is Rent out storages, rent out garages.

So there's so many opportunities in, in, in real estate. If you're creative a bit that you can start without having millions of your own already to buy huge 

[00:22:16] Ryan: properties, the it's been a thing for a while. Here we have you heard of Craigslist? Yep. The website. Sure. People at least out here in the states, or at least I'm in Arizona, the big thing is they're flipping couches.

And I love seeing these guys flipping couches. They go out and buy a couch for, 50 or 60 bucks, whatever the case is, and then they take it back to, wherever their garage, they clean it up, make it all nice and pretty pretty. And then they turn around, sell it for 150 to 200 bucks.

So there's a bunch of these guys doing that, 10, 15 times in a month. And I know it's a little bit more work. , but you can be creative. You can find pretty much anything you can invest in, like you said, is you just gotta get education and then figure it out. 

[00:22:57] Florian: Yeah, absolutely.

You can find something on, I don't know, go to Alibaba and find something that's, that you can order in China cheaper than it's sold here on Amazon and then you do that. So there's plenty of opportunities to create some extra income. And yeah, it takes some work and it takes some creativity and education, but it's possible with any budget.

[00:23:24] Ryan: Yeah. You just have to find there's, if there's a will, there's a way and you just have to find your way through it. Yeah. How many students or people that you connect with clients have that challenge to be able to come up with that creativity, to get that extra income or are challenged by investing in stocks or options or something to that?

[00:23:43] Florian: I have a lot of people that are challenged with stocks, options, commodities what I mainly do, but I don't have anyone, anybody who says I'm not doing it, they're saying, okay if you think it's a good idea for me to do that, at least as well, I'm gonna learn it. And then they do, and then they make money.

[00:24:07] Ryan: That's. that, that's good because it, it just gives 'em another tool in the toolbox to be able to help themselves down the road. And it's it's fun too. You get to learn about financial markets, you learn about financial instruments, companies, there's just a lot of research you get to do and dig into.

[00:24:23] Florian: Yeah. We have in my club Money Hero Club, we meet twice a month just to discuss what's happening in the economic and financial world and how can we make money from. . 

[00:24:35] Ryan: So you have to cover the whole world or you specifically to Europe or what do you focus in on? 

[00:24:40] Florian: We co cover the main markets which is 85, I think 58% of all stocks worldwide are traded in the us So that's the most important market if you're talking about these things.

So we do cover what they do because it influences everything else. And then Europe, of course. and if Yeah, the rest, only if something special is happening that we notice. 

[00:25:06] Ryan: That's a lot of coverage. So you have to be very well prepared to stay focused on those areas. 

[00:25:12] Florian: Yeah. I do read and listen, read a lot and listen to lots of videos.

Yeah. And see what. Try to find things that are happening. I don't need to know everything that's happening. If we catch some of the biggest events and trends and some ideas that how that will influence the market, or any special company or a special sector, then that's good enough. You don't need to know, be everywhere and know everything because there's so many opportunities.

If you just catch a few of them, that's. . 

[00:25:44] Ryan: So with the challenging market and you've said the R word, which here in the United States, God forbid we say recession, we've been in one for a while and it truly is a recession . What? What would you, what is the biggest thing that we can actually do as, cuz we're consumers.

I We gotta make sure that we're watch, tightening our belts too. But what can we actually do to work ourselves, get through the recession successfully, but come out on the other side stronger. 

[00:26:09] Florian: Rich people get richer in recessions. Actually, I read that 50% of all Fortune 500 companies were started during a recession.

. So why do rich people get come out of recessions richer? Because they have cash and buy things when they're cheap. So if you can. . Keep some cash. Have some cash or just to buy things. Once they're cheap, then that will help you. And there's lots of things like stocks that dropped by 70, 80% like commodities that come cheap, like golden silver.

Were very cheap. Now. They're not that much anymore. No. But couple of months ago we had some great opportunities there. . How do you do that? If you don't want to sit in front of your computer all the time or read the newspaper all the time and try to catch the bottom, we you never do, we don't.

It's in basically impossible. But here we are. Back to cost averaging. You just buy something every month. You say, okay, I like I believe in energy, so I buy a couple of oil companies or I whatever you want to do, healthcare, biotechnology. Just pick that and every time it dropped, you buy something more.

If you want to, you can always buy it for a hundred dollars, for example. Or if you want to increase your return every time it dropped, you increase your investment by 25%. So every time it's cheaper than last month, you buy for 125 instead of a hundred. . 

[00:27:38] Ryan: So do you buy the additional, do you buy the additional shares based upon how much it's dropped or you stay within that budget like we used with the wine example?

[00:27:48] Florian: Yeah. If you, let's say you want to buy Apple for a Apple shares for a hundred. Okay. And Apple trades at, I don't know, 150 this month, and next month it trades at a hundred and. , you say, okay, it's it's cheaper than last month. So I buy not the a hundred dollars anymore, I buy for $125 and next month it dropped 220.

And you say, okay I'll still buy for the higher amount, 125. And if it goes back up to, it's higher than last month, so it goes to 160 or something, then you'll buy less than you only invest 70. . So you have your, yeah, that's one way to do it. You have your base amount of 100 , and if the price is higher, you only buy for 75.

If the price is lower, you buy for 125. That's one way to, to increase your profits a bit, even in that strategy. 

[00:28:42] Ryan: And then, , would you suggest when we first start out to stick to maybe one or two stocks or, what would be the best way, especially, let's just say I've got 10% I can put away of my earnings.

So let's say I'm making $4,000 a month and I've got $400 a month to play with. How much do I wanna save up before I start playing the market? . 

[00:29:04] Florian: In, in with this strategy, you don't need to save up anything. You can just start investing with $400. In that case, I would probably do three to four different ETFs, one on commodities, one on the US market, and one on outside of the rest of the world.

, I would probably do that and invest around a hundred a month in, in each of.

[00:29:29] Ryan: Interesting. So can we go back to the debt piece cuz that, cuz I know people listening are, we're strug, there's people struggling with debt. What would be some great things or great steps that we can take to start reducing debt? I know there's two, there's the avalanche and snowball.

I get both of those. , but how do we, how do you effectively work with your clients to say, okay, which approach do you take to get that debt started to be paid down and stay consistent with it? 

[00:29:58] Florian: Start managing your money track. Start tracking your expenses. Find out how much money you're actually spending.

there's another statistic that that they made like 67% of people don't know how much money they spent last month. , and from the same sample, 50% said money is their biggest issue. I think there's some connection right between those two numbers, . Yes, let's start there. Track your expenses for two to three months.

Write down every single cent you're spend. That, first of all, just for having to write it down. You might not spend some of those cents and dollars you said, oh, if I spend it now, I'll have to write it down later. . Yeah, let's just not do it. And you'll find a couple of things that you're really wasting money on and you think, oh, Is this important to me after when you look at your list afterwards, oh, I spent so much money on this.

Is that something that, that I really need? No, it's not. I'd much rather spend it on something else or on paying off my debt. So start tracking your expenses. That makes a huge difference very quickly. 

[00:31:02] Ryan: Budget wise when you say track your expenses, you mean more of a budget to where you're looking at a budget on a monthly basis saying, here's what's coming in, what's going out, so you understand what's going on?

Yeah. Before 

[00:31:14] Florian: we built a budget, , I want people to know how much they're actually spending. They want to know, okay, their income statement, what's coming in, what's going out, and where is it going? Because just that already gives you so much more clarity and so much more saving potential. . Yeah. And then then you create a budget.

What I use is a very simple system from tr Ecker out of his book, secrets of the Millionaire. , which is the JAR system that you just divide your money into six different jars or bank accounts or envelopes or whatever you want to use, and one is the 10% you pay yourself, your financial freedom account, so that's the money you invest for yourself.

10% is long-term saving for spending. That's if you have debt. That's usually where that goes into, or most of it. Then you have. An education jar for an account for education that you put money aside to learn how to become better at making money or at investing your money or these things. Then of course you have 55% go into your necessities.

That's what you pay your daily bills from, food, shelter and all these things. Then we have the play account. You have 10% you have to spend on yourself, pamper yourself, do something good something you like, have fun. Cuz if you don't, you're probably not stick to your budget very long. Yeah. So have 10% of guilt free spending.

Okay. You can, you don't need to think about it afterwards. Oh my God, I shouldn't have bought this. No, that's what the money was for. But stick to those 10%, don't don't do more, and then we have 5% left. That's the give account that you give something back and help other people to become better as well.

[00:33:04] Ryan: How long does it take people to get to that point to where they've got that broken down and they're comfortable with that system? , 

[00:33:12] Florian: but creating the system is very quick, but the percentages, the ideal percentages will not work for many people to start with. So the important thing is yet that you really start from day one using the six accounts.

Even if you just put a dollar into each of them and everything else goes into necessities, just to build the habit, that's more important than the. . Once you start managing your money and taking care of it and say, okay, this is the dollar, or this is, these are the $10 that are meant to make fun for me, then you go and buy something.

Even if it's something tiny , okay, go get some chocolate. Whatever it is that gives you fun that you say, okay, here's money that is managed. And once you do that, once you can handle what you have you might get more. Not before that. Not before you start managing it. That's, most people say, oh, I want, I will start managing my money once I have more Won't ever happen.

That will never happen. It's like saying I will go to the gym once I've lost some weight. It just doesn't work that way. First you manage your money and even if it doesn't, if you don't have a lot I had. A colleague from university, when I started as a financial advisor, he told me, yeah, I'm not a client for you.

I don't have any money. Five years later, we met we don't meet very often. Five years later, he said yeah, I'm not interested. I'm, I don't have any money to invest. 10 years later, I don't have any money. I thought, okay it would've probably been better for you to talk to me right away. You might be in a better position now, right?

Yeah. So first you start managing your money and then it will grow. So create, do that, tra track your expenses, find out how much you're spending. Create your six account that you start distributing your money, even if it's just a couple of dollars in each account, and then you will slow, then you slowly grow it.

Then you say, okay, this month I could put in $1. Next month I can put in $2 in my financial freedom account. And then a couple of months later, I can put in $10, a hundred dollars. And you'll see how fast that grows because it's fun watching it grow. And once you start focusing on anon, You'll get, automatically get more, and at the same time, your debt will go down as well because you're put, first of all, you're not only focusing on debt because you know the law of attraction.

You get what, whatever you focus on expands. If you focus on debt, what you are gonna get more of, more debt. Now with the budgeting and with taking a. A way for yourself, building also your financial freedom account. You're also focusing on something you want and not only on things you don't want, and then you have a chance that your wealth actually will grow as well, and your debt will go down on the side almost automatically.

[00:36:09] Ryan: I'm all about the law of attraction. I'm all I'm with you on that. I do that daily. But what do people really struggle with when it comes to the visualization? Do you, do they struggle with that piece when you're first starting out and you're, they wanna do X, Y, and Z, whatever that case is, do they struggle with that visualization piece?


[00:36:27] Florian: totally. First I have people that, that come and. . When I close my eyes and try to visualize, I don't see anything, right? I don't see pictures and they think they have to have this movie running in front of their closed eyes and telling them showing them exactly how it's gonna look like.

That's not how it happens for most people. For me, definitely doesn't. I would love to, but no, it's not. But still, I close my eyes, I concentrate, I focus and I tell myself the so story, I just repeat it in my head how I would like it to look like that counts as visualization. Even if you don't see it, you just tell it to yourself 

[00:37:05] Ryan: and you'll start believing it.

Cuz when you first start doing it, cause that's, this is what I struggled with is when I started putting that visualization together, I didn't. So I that's had to start believing it. And just like you said, it starts manifesting. It's crazy, but people think that, it's a bunch of Huey from St.

Louis', as I, I would say, it's not, it actually, you can manifest stuff and you can make it happen. It's all, it all starts up here in your head and you have to be positive about it. . 

[00:37:32] Florian: Yeah. That's the second thing. Absolutely. That people just don't believe it. When they write down, I'm financially free, or I'm earning 10,000 a month, or whatever it is.

They, they want. Yeah. Then just write it down and read it. Read it in the morning, read it in the evening. And you've, the more longer you do it, after three weeks, it will feel normal and Believ. on day one. You said, what a bunch of crap.

[00:38:01] Ryan: it. It is. But I started out by visualizing a check and the check had the dollar amount that I was wanting to achieve, and I just kept on seeing it and seeing it, and I'm like, why don't I just go get a check off of the internet or whatever? And I'm like, why do I wanna do that? Why don't I have a check? So I started doing that and that, that really helped me understand and visualize it.

And now today I write stuff down and I go through it and I do it in the mornings and then at night I, for me it's quiet time for things that I'm thankful for because I think if you don't give thanks to what you have, life, my health, my family, my friends, my dogs, my girlfriend, all that stuff.

How are you supposed to, you. except new things coming into your life if you're not thankful for the things that you currently have today. 

[00:38:49] Florian: Yeah, absolutely. I've for that, for all these things I've created here, the Money Hero Wealth Journal. Yep. Which includes these things you're visualizing and the affirmations, what you actually want.

The gratitude, celebrating successes. So you actually learn how to win. And some every day it's a 90 day workbook. Every day you get some task to fo that will focus you on your, on a different area of your aspect of your. . 

[00:39:20] Ryan: That's awesome. That is great. So we're coming up to the top of the hour.

So how could everybody get ahold of you and connect with you if they're looking to take advantage of your coaching? 

[00:39:29] Florian: The easiest thing is probably to go to money hero Okay. On that page, in just very shortly, I'm launching the probably world's most affordable financial education platform.

It's going to be just $7 a month. Wow. Teaching money mindset, money management including not only this journal, but lots of other helpful stuff. Wow. So I'm launching that and I think that's affordable for basically everyone that wants financial education. It's gonna be on that page, money hero in just a couple of days or maybe a few weeks.

[00:40:11] Ryan: that'll be great. What will they learn from that program? Are they gonna get everything that you're talking about we talked about today? 

[00:40:17] Florian: That's everything. We're not going into the investment part yet. In there, it's okay how you think about money, how you change your from resisting money to attracting it.

there's it includes a 21 day attracting money challenge where you have every day a little task and to yeah, change your beliefs around money. Okay? How we go into how to manage your money for small business and for personal finances. How you can do that. We have a goal setting program in there that's very powerful.

It's created by two of my mentors. One of them has trained people like Michael Jordan or Mike Tyson. So he really knows how to achieve some goals. And that process has been used to create multimillion dollar businesses as well. So we use that process to find the right goals for people. . So these are the things that in there I'm working on a second part that will launch, I don't know, 1, 2, 1 or two months later for the investment part.

[00:41:14] Ryan: Okay. I will definitely share your website in the show notes so people can go there. I'm gonna go check it out. If you're offering all that for $7, I bet you there's something else I can learn in life and I'm all for that. 

But thank you Florian, for coming on the show. It was an honor. I love the conversation. I love what you're doing. You're giving people skills that they really need to succeed in life. Thank 

[00:41:39] Florian: you so much for inviting me. It's been great to be here and share. 

[00:41:43] Ryan: Thank you, sir. Have a good day. 

[00:41:46] Florian: Thanks, you too.