How To Spend Less Money – Become Obsessed
How do I spend less money? How do I make my money go further? My name is Kris Krohn and today on limitless TV we’re gonna answer that very question. How to spend less money. Right? It’s interesting when my wife and I we first got married, we were so tight on money and we needed to figure out how to spend less money and so it’s interesting that the first thing we had to do was develop the right kind of mindset. And my wife came from, I think very successful family but very frugal parents as well. And they always said, we have money because we don’t spend money. And they had all of these stories when they first got married and one of the stories that they had was about Lawry’s seasoned salt. It’s kind of funny because her mom’s name is Lori but there’s actually a brand of seasoned salt called, Lawry’s seasoned salt. And she has the story about how she and her husband saved up for this $2 and something tall can of seasoned salt and how devastating it was when their firstborn child, playing around, dumped it over and all the salt went out of the bottle. And how traumatizing that was for people that were that poor. Well my wife and I, we definitely felt that poor because we were sliding backwards every month, we were going into debt, we needed the solution to how to spend less money. So we developed something called KPPPM. Cleanse, parents, penny-pinching month. And what it was was a mindset that said we’re gonna spend less on what we want so we can have that money go towards the things that it needs to be spent on like food, groceries, needs to be spent on mortgage, needs to be spent on x y&z. Well I want to share with you a couple of systems that we generated and I want to throw out a caution. Over time with what I’m about to share, I became financially very successful then I became financially independent, then I became very very wealthy. At the same time one of my mentors had just gone bankrupt and lost everything and he was just coming back into wealth again and was built in a 17,000 square foot home and I went out to meet him at his home. And right in the middle of building it, he crashed and tanked again. My mentor that taught me so much did not know how to readjust his spending when he didn’t have the money and so he kept failing back to back again and I think it comes down to this principle of, you got to know how to scale up and you got to know how to scale back. My wife and I, our most success methodology for scaling or budgeting came down to what we called the envelope method. Now the envelope method essentially meant that we would have a series of envelopes and one of them would be for expenses, and one for fun, and one would be for bills, and what we would do by dividing up the money every month is that when it came to time to pay for something we didn’t use mysterious plastic that could go into the negative. We would use hard dollars. And once the hard dollars were not enough in the envelope, we didn’t nor couldn’t buy the things that we wanted. This was good for us because we were developing discipline. We didn’t have a lot and we wanted to have a bulletproof system. And you know what? This hard manual system even though it was kind of a pain in the butt, it worked really really well because it meant that we couldn’t spend more than we had. And you know what? When you have, when you need fear out of spend less money it starts with this discipline of I can’t spend more than I have or more than is allocated. what I want to share with you next is who to pay first and what the sequences in what you pay whether you do have enough, or whether you don’t have enough. Because what I’m about to share is the secret that made the difference of my wife and I getting out of debt, getting ahead, putting hundreds of thousands of dollars in the bank and becoming multimillionaires just off of this one secret alone. I really don’t know if anyone truly likes budgeting but I will tell you this, if you want to be successful, I’ve given you the envelope methodology. You’re figuring out how to spend less and I want to share with you two final thoughts. The first one is, what is your why? And the second one is obsession. Let me talk about these. Do you have a reason for spending less money? Is there a greater goal? Is there a debt to pay off? Is there an investment to buy into? is there a car you want to buy? is there a trip you want to take? Right now, if you can make your why bigger than how you spend money then you’ll have a reason to be on point. You’ll have a reason to be game on and that’s what you’re really looking for is, okay Kris well sure I can get technical advice and budget and do this thing in the envelope methodology for how I’m gonna figure out how to spend less and save more and I’m asking you why. Because if your why isn’t big enough you’re not gonna do it. We’re talking about changing behavior, behavior only changes when we have a big enough why. When we have a big enough reason which is why I’m gonna give you the gift today a bonus number two, obsession. Here’s what obsession means. It means it’s the opposite of ADD, Squirrel. It’s the ability to hone in and focus entirely powerfully on your why and what you want. Because when you know what you want and then you put that energy of obsession into magnifying it, you know when I look at it for me, there was a point in my life when we were in debt and my mentor said I needed five thousand dollars to buy my first property. It took me 14 months to save up the money for that five grand and that first property led to hundreds of properties, it led to becoming financially independent and yet was buying the first home or the 500th home that made the difference? it was obsessing over the goal of the why for the five thousand. And so all of a sudden that was the thing that I would held and I would think about and obsess over it and I was allowing my mind to think, how can I save more? Where can I pick up a penny? There’s a, there’s a dime on the street there’s got to be a way. How can I drop my phone bill? How can I this? how can I that? And you know what? 14 months later we bought that home and that home cascaded into a pile of wealth. So what is your why? and then get super obsessively committed to it. Thank you for joining today on limitless TV. Become a subscriber. Learn more about who we are, what we do, we’ll teach you how to create wealth in real estate and we’re gonna teach you the ultimate mindset for success.