Ever wondered how successful people automate their wealth and achieve financial freedom? On a recent episode of the Rich Dad Radio Show, hosted by Jaren Sustar filling in for Robert Kiyosaki, we were introduced to Brennan Schlagbaum, a bestselling author, the founder and CEO of Budget Dog, and an accomplished CPA. During the show, Brennan shared his journey and provided insights on how to simplify, automate, and build wealth efficiently. Here’s a deep dive into the essential steps and actionable items he discussed to help automate your wealth and secure financial freedom.
From Debt to Financial Freedom: Brennan’s Backstory
Brennan Schlagbaum’s journey to financial freedom started with a significant amount of debt after he and his wife embraced the so-called "American Dream." Like many, they had the cars, the house, and even a bed loan, putting them in a "weird, but normal" financial position. They decided to tackle their debt head-on and shared their journey with others, which led to the creation of the Budget Dog brand.
By focusing on the fundamentals of finance—simplification, automation, and the basics—they achieved financial freedom relatively quickly. This journey wasn’t just for luxury; it became a necessity when their daughter, Logan, was diagnosed with Dravet Syndrome. This life-changing event solidified their commitment to financial freedom, allowing them to focus on Logan's health and development.
*The Fundamentals of Financial Automation**
Brennan emphasized the importance of three essential financial statements for anyone looking to automate their wealth:
Budget: Understanding where your money is going is crucial. This isn't about cost-cutting but gaining transparency and control over your finances.
Balance Sheet: Knowing your net worth, assets, and liabilities is like setting a starting point in a journey. This helps in planning the most efficient path from your current financial position to your desired goal.
Amortization Schedule: For those with debt, creating a debt timeline can help manage and predict payments, making the path to becoming debt-free clearer.
Budget: Understanding where your money is going is crucial. This isn't about cost-cutting but gaining transparency and control over your finances.
The Power of Automation
Brennan cannot stress enough the importance of automating your finances. By setting up systems to manage debt pay-down, bill payments, and investments, your money works for you even when life’s unexpected events occur. Automated investments ensure that contributions continue consistently, allowing for long-term growth without the need for manual intervention.
Diverse Investment Strategies
Brennan's investment strategy is robust and diversified across various accounts and asset classes.
He advocates for a balanced approach, combining both US-based and global investments to minimize risks and maximize returns.
Dealing with Economic Uncertainty
In uncertain economic times, such as those we face today with high inflation and fluctuating market conditions, Brennan believes in the long-term potential of the US economy and practices diversification. He advises against trying to time the market and stresses the importance of consistent, automated investments to capitalize on compound growth over time.
Life After Achieving Wealth
When financial freedom is achieved, new opportunities arise. Brennan discusses how being in the right circles and connecting with like-minded individuals has been key to his continued success. For him, financial freedom isn't about abandoning work but using the independence afforded by wealth to create, innovate, and give back to the community.
Conclusion
Achieving financial freedom through automation and disciplined investing is a journey that requires transparency and dedication. Brennan Schlagbaum’s insights shed light on how anyone can start from a position of debt and work towards financial independence by following foundational principles, automating processes, and maintaining a diversified investment portfolio. Remember, the journey is about consistency, discipline, and a clear understanding of your long-term goals.
For more on Brennan Schlagbaum, check out his social media platforms at Budget Dog or visit budgetdog.com to learn about his comprehensive financial programs. Remember, taking the initial step of looking in the mirror can lead to a profound transformation in your financial life.
Timecodes:
00:00 Introduction
01:00 The Journey to Financial Freedom
06:08 The Importance of Financial Transparency
11:49 Behavioral Aspects of Financial Management
17:44 Next Steps After Budgeting
18:00 The Power of Automation in Investing
20:07 Understanding Investment Accounts
23:52 Navigating Economic Uncertainty
26:51 Life After Wealth: Opportunities and Purpose
Disclaimer:
The information provided in this video is for educational and informational purposes only. It should not be considered as financial advice or a recommendation to buy or sell any financial instrument or engage in any financial activity.
The content presented here is based on the speaker’s personal opinions and research, which may not always be accurate or up-to-date. Financial markets and investments carry inherent risks, and individuals should conduct their own research and seek professional advice before making any financial decisions.