RG 154 – Why Investors Fail When Starting Out with MC Laubscher
Nuts and Bolts
MC Laubscher was first featured on this podcast on episode 56. MC is the host of the Cash Flow Ninja which is the top podcast for business and investing on iTunes. He’s also the chief investment strategist at Producers Wealth. MC has recently rebranded Producers Wealth because he wanted to be clear about who he’s serving. The Cash Flow Ninja is a separate company to Producers Wealth about how to make a cash flow in the new economy.
MC and his business is all about pursuing excellence which has been his motivation since he was a young boy. His father was and still is a famous Karate athlete who still practices and teaches. These values were things he used when creating wealth, it’s about continually changing and reinventing yourself to hone your craft. This is something MC has recognized in other successful people at the top of their respective pyramids: they try to constantly reinvent themselves to hone their craft.
In current times people are still failing to achieve their cash flow aims because they don’t have a strategy. For example during the bitcoin mania in late 2017 some people did well and some people lost everything and this was because they didn’t have a strategy; they didn’t know what they had and why they were doing it. Your strategy should align with your life goals which point towards financial freedom. MC has 4 levels of financial success; security, independence, freedom and significance. Independence comes hwen your passive income exceeds your living expenses and freedom comes when you make more money than your living expenses so you can save and continue to invest.
MC teaches that your mental capital is what you learn and what is already known. When you multiply your mental capital by your relationship capital this equals your financial capital. By doing this equation you can work out what other things you need to do in your life to keep the needle moving on your capital. When you make money don’t just give it to a financial advisor who doesn’t know you or your goals and strategy. You should have full control. MC explains that what upsets him is people who kill it in their business and then take all their money and hand it over to someone else to invest on Wall Street which is away from their strengths
Wealthy people save 45-50% of their income and this money is leveraged and put to work – not just sitting in a saving account. MC’s top tip for 2019 is that there’s going to be a lot of volatility so get clarity on what you’re doing and why and build your risk management strategy for multiple kids of risk; political, economic, market and institutional.