Featured Coaching Excerpt - Notes & Transcript, Part 1
Credit Card Epiphanies: 1. They are a double edged sword
Lesson Nugget: Credit cards are tools that can help you or hurt you based on how you use them.
Lesson Nugget: A credit card builds your credit history, which is needed for getting a loan or leasing a space.
Credit Card Epiphanies: 2. A credit card is often needed to rent a car, lease a building, or start to build your credit.
- All right, we're talking about credit cards. We had a Thriver who submitted a question, it's kind of a funny question, but it's a true question. It says, credit cards, are they evil? So we're teaching you some basic financial planning tips here that actually apply to people who are making tons of money. Doctors, lawyers, attorneys, I work with all of them. And all of them need to know this question, all of them these questions where they're kind going, although I might know the keys to the universe and I'm an actual doctor, I need some help on some credit advice, what do I do? And I'm going to tell you the real truth about credit cards. Ok, I got five big epiphanies for you about credit cards. Epiphany number one: They are a double-edged sword. So I'm going to show my drawing, those of you who've not seen my double-edged sword drawing, you're really missing out on a life changing experience. It's like going to Disneyland, except for there's no characters, the weather's different and there's not a lot to eat, but here we go, double-edged sword. So this is a double-edged sword, meaning a sword can cut both ways, right? It's hot on both sides. Could potentially cut over here, it could cut over here. So the gain, the good part, and the pain. The good part about a sword is that it is a cutting device. It can be used to cut, it is also can be used as a tool. So, your buddy, Gaylord, he says to you, Dearest brother, it appears as though we have an intruder in our home. We need to stop him, and you can say, oh, no big deal bro, I got my you know, sword. And you just stab the guy. You know, another example, he could say, dearest brother, we cannot get inside of our house right now. We can't get inside, we're totally locked out. What can we do? And you go, no problem, bro, I have a sword. And you just knock your way through the door, sword, problem solved, boom. The pain is, you go, have you guys seen my sword? I feel like it might be over, ahhh, and you fall and you stab yourself accidentally with your sword. Or, your nose itches and you're going, it itches, I just can't get it to stop, what is that, and you, oh no, I cut off my nose! What has happened to my nose? That's the danger of a sword. Good and bad, ok. It cuts, the bad is that it cuts and it's a tool, right. But the good is that it cuts and it's a tool. That's like credit cards, so let's get into credit cards here, ok? Specifically, a credit card, you need a credit card. You have to have a credit card. I mean, you can't not have a credit card. I hear people say, I've never had one, I don't need one. So, I'm just gonna say, if you don't have a credit card, these are the things that you can't do. So let me walk you through this, ok? So, credit card, these are the things you can't do. You can't rent a car. Well, I heard that if I have a debit card. Fine, get a debit card. I argue that a debit card's more dangerous because what if someone zaps your whole account takes all the money out? You can't, I mean, on a credit card you can contest the payment if someone steals your credit card. So, one, renting a car makes it tough. Ok, so renting a car. Second thing is you need to have some sort of credit if you're ever going to lease space for your business. You can't lease space if you don't have a credit card. You can't go out there and lease an office if you don't have any credit. You have to have some kind of credit. You know, like, no sane landlord is gonna let you lease space in their building if you have no credit history. You've gotta have a credit history if you're going to lease something. If you're going to lease a building, I don't know, if you're going to open up an office, I mean, if you are an entrepreneur, I can't imagine a scenario where you wouldn't want an office somewhere. I'll just office at my house. How are you going to buy a house without any credit? I'll pay cash. What are you living in like a shack? I mean, I just don't want to get into it with you, but the thing is, it's very, very important that you've got to have, you gotta understand you need it to you know, rent a car, you need it to lease a building, you're also gonna need it to buy stuff for your business.
Featured Coaching Excerpt - Notes & Transcript, Part 2
Lesson Nugget: Credit cards help when buying things for your business.
Lesson Nugget: A credit card is very helpful in emergencies.
Credit Card Epiphanies: 3. If tempted to misuse your credit card, set daily spending limits.
Credit Card Epiphanies: 4. If you struggle with credit cards, lock them away so you have them for emergencies but will not be tempted by them.
Credit Card Epiphanies: 5. Ideally you want one business and one personal credit card.
Editor's Note: Email us at Thrive15.com for recommendations on which credit card is best for you.
- Let's say you wanna buy a bunch of cameras, I own a photography business. We just ordered a bunch of chairs from China, for Elephant In The Room, our men's grooming lounge. We also ordered American chairs, calm down, but we ordered a lot of products right? So you gotta buy that stuff using a what? A credit card. You gotta have a credit card. I can't deal with you if you're not the kinda person who can handle the fact that you do need a credit card for something. The other thing is emergencies. So you're saying listen, I am never going to need a credit card okay? I have the most disciplined financial life ever, I live in a box, I have no debt, I save all my money, I do not need a credit card, I do not, I do not, I do not! Well now you're super sick, and you need to go to the doctor and you break your arm, and while breaking your arm you break your leg, you fall off a motorcycle, you injure yourself, now you need to have an extended stay in a hotel, post surgery because your plane gets delayed. It's an emergency. You need a credit card in order to be able to pay for that emergency, that expense. Maybe you have an interest free credit card and you pay it off slowly over time, because of that emergency. But you need to have a credit card. Now, here are the moves though. Okay so move number one, it is a double-edged sword. Two, you do need one. Three, if tempted, if you are tempted to use your credit card for ungodly, unhealthy, unwise purchases, what you wanna do is you wanna set daily limits. You call the company up and you say, hey... the max that I want to spend, be allowed to spend, is 300 dollars a day. Well what that does is that means that you probably won't spend more than 300 a day because you can't! Cause you have a limit on it. So just call the credit card company, set up a limit, and that way you can't spend more than you have. That's a move, okay? If tempted, set the limit. Next move, if you're tempted, put that beast in a safe. Just put it in the safe, put the little lock on it, and whenever you need it, it's inside here, but don't get it out of the safe unless you need it. I mean if that's something you need to do. I would also argue, if you're that kinda person, you should probably not have alcohol anywhere near you, you should probably not go outside, you should probably live in the woods, and you should probably, just put yourself in a bubble, so you avoid all temptation. And the final point number five is, ideally in a perfect world, you want one credit card for business right? And you want one for your life. One for your personal life, this is personal okay? One over here for your business okay? So every time you but something, you're going to like Office Depot, 'gotta go to office depot, gotta buy something there'. Today I have to buy a computer at the MAC store, I'm gonna go buy one at the MAC store, that's a true story. I'm gonna go to the Mac store today and buy a computer, and I'm going to use my business card there. Now for personal life, I'm like 'I want some sushi', they've got some really good sushi there at Whole Foods, and I love Whole Food sushi. They also have great sushi at Sprouts if you're looking for my recommendations on sushi, but the thing is, these were personal. I wanna buy some groceries, I wanna buy toilet paper. Technically I'm doing my business if I'm using my toilet paper. But no seriously, maybe you're using your toilet paper for your business, it's for your office. TP. 'I need TP for my office'. So we need TP. Toilet Paper. So that would be a situation where, 'I need TP for my office'. Then you would buy it on your business card, if you bought TP for your house, 'I need TP for my home'. 'I need TP for my home'. Then you would buy the TP over here under your life, on your personal card. That's how it works, that's how you do it. If there's any more complications, or you need recommendations for a specific credit card, just email us at info at Thrive Fifteen dot com click the ask the mentor button. We're here to help you, so take those notes, I encourage you to take action. Whenever we're teaching you something, Thomas Edison says it, 'vision without execution is hallucination'. I encourage you to take action. So go ahead and schedule those action items. We have a time management app we've built here, for a time management system we've built for you, right here on Thrive fifteen dot com. I encourage you to schedule those action steps and say, 'What do I need to do as a result of the information that I've learned here today'? Until next time...Boom!