Tai Lopez 67 Steps — Step 19 — Amazon.com and the $32,000 Brain Budget
Amazon.com and the $32,000 Brain Budget — The education budget you must institute
March is tax season and also the time that broke people spend their money on things they wouldn’t normally be able to afford. Are you one of those people? If so, then this step was made especially for you. While it is pretty easy and simple, it is also of extreme importance. Tai goes straight into the point of how much of your income you should be spending on your brain.
When was the last time you spent money on a seminar? How much did you spend on books last year? These are all questions that you will have to ask yourself in order to have a real idea of how much you really value knowledge.
Tai gives an example of someone he knows that was broke and in need of financial clarity. So, while at a store with the guy, Tai recommends a book that could help him tremendously. The guy asked how much the book was and quickly shouted that he did not have the $75 to spend on the book.
However, Tai pointed out to him that he was wearing a pair of Jordan’s that cost him $160. Now, how can someone put a pair of shoes ahead of knowledge that is going to help them achieve their goals? If you want success you cannot think and act in that manner. There isn’t anything wrong with purchasing Jordan’s but you must learn how to use your discretionary income wisely.
Discretionary income is the money that is left over after you have paid all your bills and purchased all your necessities. Tai recommends to take 30% of your discretionary income and invest on doubling down your brain. From now on, you will no longer just buy things that rust, rot and depreciate, you will buy seminars, books, travel to meet with people that can add great value to your life.
Understand that there is nothing wrong with buying clothes, brand items or nice cars, the problem is the ratio that is spent on those items. So, get really good at knowing what you spend your money on, figure out your discretionary income and start investing on yourself. Remember, if you learn something new every day, you will know 365 days by the end of the year.
