Building wealth as an entrepreneur takes more than just generating revenue – it requires cultivating the mindset, strategies, and disciplines needed to master your money. And in the quest for financial freedom, entrepreneurs may have more to learn when it comes to understanding and growing their money.
In this episode, I share my most valuable takeaways from my conversation with Jackson Millan in episode 096: Financial Freedom Through Sustainable Wealth.
Entrepreneurs seeking to master money and build wealth will learn from the unique concepts Jackson discussed – the impact of a wealth letter, different entrepreneur archetypes, visualising future ideal lifestyles, and how to effectively raise prices.
If you’re ready to elevate your money mindset and build sustainable wealth, listen to this episode as I share key lessons from The Wealth Mentor and learn how you can build a gateway to financial freedom.
IN THIS EPISODE, YOU’LL FIND OUT…
- The impact of writing your future self a Wealth Letter (01:42)
- The three different types of entrepreneurs and the financial challenges of each type (02:32)
- The significance of visualising your ideal future lifestyle (04:45)
- Understanding the concept of Utility, Luxury, and Commodity in terms of raising prices (07:06)
QUOTES
“It’s very easy for entrepreneurs to think about hitting a certain dollar figure without realising that in 20 years’ time, inflation has eroded the cost and value of that money.” -Carl Taylor
“Although raising prices is one of the scariest things you can do, it’s also the easiest thing you can do to improve profitability.” -Carl Taylor
RESOURCES
Entrepreneurs Rising episode 096: Financial Freedom Through Sustainable Wealth with Jackson Millan
https://www.wealthhealthcheck.com.au/
WHERE YOU CAN FIND CARL TAYLOR
Automation Agency
CarlTaylor.com.au
LinkedIn
Facebook
Twitter
TRANSCRIPTION
Carl Taylor Snippet (00:00):
He gets his clients to initially write out. What do you want, like in 20 years time, what holidays you want to be taking? What hobbies do you want to be doing? What interests do you want to have, like, what is the life you want to be living.
And once that’s really clear, this is the life I want, you then works with them to put $1 figure on that. So here’s the life you want, here’s the dollar figure you need to be making. And then it’s about building the strategy to achieve that dollar figure.
Carl Taylor (00:35):
Hello, and welcome to another episode of Entrepreneurs Rising. I’m Carl Taylor. And in this episode, we’re going to be recapping, while not necessarily recapping, sharing some of my biggest takeaways from my conversation earlier this week, with Jackson Mala.
Now, if you haven’t listened to that episode, as always, I will encourage you to go and listen to the full interview with Jackson. Why, because in this, you know, 510 20 minute episode that I’m about to record, it’s not going to capture every single thing that Jackson said. And it was really good.
Jackson clearly knows his content. He is a master when it comes to teaching others how to understand money. And in particular, he works with entrepreneurs, as an entrepreneur himself for many, many years growing multi seven figure businesses and then helping hundreds 1000s of businesses.
And one of the figures we shared was he’s helped them accumulate over $2 billion in worth, not one individual’s net worth. But that’s kind of what’s under investment with the people that he’s worked with.
So I do encourage you go and listen to them. So but here’s some of my biggest takeaways, we started off the episode talking about a really great activity that he just done before we hit record. And that’s called a wealth letter. And he did it with his whole team.
So the idea of just sitting down and writing yourself a letter a future self for next year, and sharing what have you achieved in the last year in life, so but you’re talking into the future. So you’re writing a letter to you in 12 months time, and you’re saying, hey, like, I’m so proud of you, because you’ve achieved this in your career, your life is like this, your personal world is this, here’s what we’ve done financially.
So I think it’s a really great activity. I’ve done this letter writing activity in numerous times throughout my entrepreneurial journey. But the idea the fact that Jackson does it every year, and he runs it with his team, I think that’s a really cool thing that you could swipe and deploy in your own life, but also to run with your own teams as well. So that was a really cool thing.
The other thing that really stood out, he talked about the three different types of entrepreneurs. There’s the entrepreneurs that make money really easily, but they hold on to it really badly.
So maybe you identify yourself or maybe someone you know, who’s really great, you know, they can grow a business, they can sell, sell, sell, they can pull in seven figures, but once they make the money, it seems to slip through their fingers, and they’re back into like famine mode and need to bring in the cash.
The second type of these people who are kind of financially treading water, your business is good. standing fairly still, you just kind of treading water where you are. And usually whatever cash you’re generating, it’s either going straight back into the business, or you’re having cashflow creep, meaning you’re you’re slowly going, Oh, I’m making all this extra money.
I’m going to start spending, you start doing the business class flights, you start doing the buying yourself the new Tesla or whatever. And you kind of have this cashflow creep in life and in business. And then the third type of people who are he called financial growth, meaning you’ve got a profitable business, things are growing, it’s consistently growing.
And so these people aren’t necessarily going, Hey, I need to fix these problems. But they’re looking to refine, he gave the analogy of like, you know, if you’re trying to be a gold medalist, sprinter, even if you already one of the fastest people in the world, you’re still going to work with a coach to keep trying to improve your game and just do better and stay on fall.
And so he’s there The third type of people that he often works with, I think that’s a really great way of going well, where do I sit? Are you the person who makes money easily, but you can’t hold on to it? Are you currently financially treading water? And if so, are you reinvesting all your money back into the business and not taking anything out to build wealth?
Or are you cashflow creeping both in the business and out like sometimes you think cashflow creep is overwhelming proving my lifestyle. There’s a lot of people I know who their cash flow creep is in the business. They’re like, Oh, well, I’ll just buy that extra subscription. I’ll just do that. I’ll throw on some more team members I’ll do I’ll start spending on these business expenses, rather than actually, maybe that money could have been thrown into something else that would invest outside of the business.
And then thirdly, are you one of those people who you know, I’m really good at my money, things are going well, but it could be valuable to get a little bit of improvement. So if you’re one of those buckets, it’d be really useful to know where you think you sit. That was a cool takeaway. The other thing I liked, there was a little throwaway line that Jackson said to is like, I live for today, but I plan for tomorrow, because often people he was talking about this 20 year roadmap that he does with clients and then eventually does 100 year roadmap for intergenerational wealth. and your people that, you know, timelines like that can be really scary.
But to come back and go, Well, I’m gonna live for today. It’s not about not living life, but I’m gonna plan for tomorrow. And one of the cool things that he did, he says he does is he gets his clients to initially write out, what do you want, like in 20 years time? What holidays Do you want to be taking? What hobbies do you want to be doing, what interest you want to have, like, what is the life you want to be living. And once that’s really clear, this is the life I want.
He then works with them to put $1 figure on that. So here’s the life you want, here’s the dollar figure you need to be making. And then it’s about building the strategy to achieve that dollar figure. Whereas I think it’s very easy as entrepreneurs to go what I want to hit this dollar figure.
And where we can fall short to is if we go away and make this dollar figure, you’re usually thinking about that dollar figure in today’s money, not realizing that in 20 years time, if you make, let’s look, for simple figure, let’s say you want to make $10 million, right, you want a net worth, I mean, we should be talking cash flow. But for now, let’s just keep it simple.
You want $10 million net worth, you’re thinking of that in today’s money, if you achieve a $10 million net worth in 20 years time, that’s not the same amount of money is $10 million. Today, it’s less, because we’ve had inflation that has eroded the cost of money, the value of money.
So that’s another big mistake that we often make. Because we set these financial goals at a far off time in the future, not realizing and not factoring in inflation to put a proper dollar figure on it. We’re thinking about it in today’s money. What I really like about what Jackson does is he’s taking away the dollar figure and he’s making it about the life what life do you want, there’s going to be some assumptions about what the cost of that life is going to be in 20 years time.
But then you can put $1 figure on it, and you can then work towards that’s the dollar figure in terms of income, not net worth income you need to be making, I really love that thing. That’s really cool.
We also talked a bit about your right, raising prices. Usually, it’s one of the scariest things to do. It’s also one of the easiest things you can do to try and improve profitability is just put your price up.
And Jackson talked about this different scale of like, are you utility? Are you a luxury, or are you in the middle where you’re a commodity. And so if you’re a utility, people will genuinely just go well, if your cost of electricity goes up, you’re just going to pay it because you have to, if it’s a luxury, and the price goes up, the right people are still going to pay, they still going to buy it because its status has various things they’re buying. If you’re a commodity, you know, it’s different, they’re going to look for the cheapest price they can get.
So if you’re a commodity, and you know there are cheaper options than you in the marketplace, putting your price up is potentially going to make some of those people go and find cheaper options.
So you’ve got to figure out where you are. But you also need to remember there’s a matrix. I think we’ve talked about this in a previous episode. But basically one of the the numbers that Jackson throughout is that if you put your price up eight to 10%, you can lose up to 13% of your clients before it actually impacts your profitability.
And he says after doing this with hundreds and hundreds of businesses over the years, he’s found that you might lose 5%, you don’t lose 13%. So if you put your price up by eight or 10%, you might lose 5% your clients, which means you’re still going to be ahead overall financially, so it’s not going to be you lose no clients, you probably will lose some.
But it may not be this scary, like oh my god, no one’s gonna do business with me any more. So that was a really cool conversation to ultimately, I encourage you to listen to the full episode because we went in so many different angles. My mind was like, Yep, I agree with that.
Yep. And I didn’t write everything down to say, here’s my biggest takeaways. So I encourage you to go and listen to the whole episode. I also encourage you to go and check out wealth, health check.com. Today, you wealth, health check.com. Today, you and while it’s a.com.
Today, you I know if you’re an international outside of Australia listener, and I have many of you, you still check it out, put your name and email in to get the resources because Jackson does work with businesses all around the world, not just in Australia. But the reason you want to go to that is there’s a little quiz you can do which will give you an insight of some of the areas you can focus on.
But it also will give you access to a whole bunch of tools and resources that he has spreadsheets, calculators, that I think would be a real treasure trove. Whether you choose to work with Jackson’s team or not, these will be really useful in your journey in business. So just a quick one today.
Hope you’ve enjoyed this episode. If you’re enjoying the show, and you haven’t already subscribed, please hit subscribe. I’d love to make sure you get notified every time a new episode hits. And if you aren’t already on our email list, you can go to freedom find a quiz.com and you can fill in my quiz.
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Outro:
You’ve been listening to Entrepreneurs Rising. Thank you, dear listener for tuning in. I appreciate your time and look forward to connecting in future episodes if you would like show notes or any resources from today’s episode, you can find them at rising.show rising.show you can find the show notes for this episode and all other episodes as well as links to socials and or the ability to reach out and connect with me make your suggestions for future episodes. Until next time, keep up the journey.
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