00;00;09;21 - 00;00;30;20

Unknown

Welcome to the Profit First for Real Estate Investing podcast. Every week we bring you top investors and experts sharing how they create clarity, cash flow and consistent profit. This episode is brought to you by simple CFO. Profit first. Profit always. Lets go. Hey, this is David Richter as the Profit First podcast. Have a great guest today, Justin Nowy.

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Unknown

And if you have ever wondered what Profit First can do for you and how it can make your life better. Take the trips you want to not have financial stress. To be able to really understand where the money is going. Becoming a master of money. You want to listen to today's episode because Justin is going to help you.

00;00;46;23 - 00;01;07;09

Unknown

He's going to help you get to exactly where you want to be, and he's going to tell you his story of how he got there. And honestly, the simple steps to get there. So listen to Justin take notes. I would highly recommend listening to this one a couple of times, because there's some key points in here that will help you become a better business owner and master your money, the money that flows through your fingers.

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Unknown

Enjoy the episode, everyone. Welcome back to the Profit First Right podcast. I'm your host, David Richter. I have a very special guest, Justin Nowy, here today, and he's become one of my favorite people over the last month or so since I've met him, because he's such a profit first fan. But not only that, he's implemented to a degree that most people never get to, and his life has been changed drastically.

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Unknown

So I'm setting you up here, Justin, but thanks for being on the show. Yeah, David, I really appreciate you having me on the show today, having an opportunity to talk about my profit first journey. You know, I've read your book, actually listened to it on audible before. So it's really cool to be on here with you today. Yeah.

00;01;52;16 - 00;02;12;06

Unknown

Well, I'm excited to have you. And excited because a lot of people never get to the point that you're at because they either don't take the action or they don't follow through, or they don't do what it takes to get there. But you have a background in the military, in the Marines. Correct? That's where you are. You're a marine through and through.

00;02;12;08 - 00;02;31;11

Unknown

Yes, sir. I spent just over 20 years as an active duty marine, traveling all over the country and world. And now I am officially retired and full time real estate activities. Well, I wanted to say thank you for your service. I think I'm saying that for everyone that's listening now, too. But I love how you've brought that mentality.

00;02;31;11 - 00;02;52;02

Unknown

That mindset seems like you've really taken that over in the real estate space, because now that I've gotten to know you, you have an incredible real estate sales team. And then you do flips, you do rentals, and you got lots of stuff going on in your little hemisphere. The real estate world. I did want to ask, how did Profit First kind of become that thread that tied all that together?

00;02;52;03 - 00;03;12;23

Unknown

Like when did that either happen or like, what was the story leading up to it? Yeah. Great question. So in 2019, I guess it was like a January timeframe. My I was going to be going I was transitioning at some point, like in the next few years out of the military. And so I had really gotten into bigger pockets and really trying to grow a portfolio.

00;03;12;23 - 00;03;32;15

Unknown

It already had a couple rentals that I had collected, you know, across the country, and I was trying to optimize and get better. And so I was reading a ton of books on real estate. I came across To Profit First by Mike, read the book then, and didn't really have any idea like, you know, well, that that'll be great one day.

00;03;32;15 - 00;03;54;12

Unknown

And so I did set it up in a way where I did, you know, open up a savings account for my real estate, you know, business in a checking account. And that was kind of the two things that I did at the time. I didn't have enough business really to happen. And, fast forward, you know, about three and a half years later, you know, I'm, I'm now have collected a bunch of rentals.

00;03;54;12 - 00;04;15;12

Unknown

I had gotten my sales license, I was conducting sales in preparation of getting out of the Marines. I was, you know, down in my hometown and, you know, starting my business as I was transitioning out of the Marine Corps. And I had all this money and that I was making. And I realized, like towards the end of the year, I'm like, where is all the money going?

00;04;15;12 - 00;04;32;20

Unknown

And then somehow, somewhere, I think I heard a podcast, somebody mentioned profit first. I was like, oh yeah, I need to go read that book again. So I actually downloaded it or I had it in audible. So I listened to it and then I read it again. And so it was like my fourth time, you know, I had to bang it in my head.

00;04;32;26 - 00;04;55;24

Unknown

And that's I started doing that in the January of 23, fully implementation of the profit first system, and never looked back ever since. And I think I found your because I was like super profit first heavy. I had found your your book for real estate investors and so that's when I downloaded. That was around the same time as I was implementing the system in my business.

00;04;55;26 - 00;05;13;07

Unknown

Awesome. Very cool. Well, I'm glad that you actually listened and took action, but it did sound like leading up to that, that I would say it does, that you did a lot of what of other entrepreneurs do. It's like what, reinvest all the money back into the business or make money but feel broke or like, I don't know, what was that a lot of what you were doing?

00;05;13;07 - 00;05;31;18

Unknown

Or was it more just like, hey, I've got what I need or I got what I'm doing here, but I just want to keep building and grow it. Well, I don't know. What was the thought process leading up the profit first, just in especially that last year? Was it like, hey, I'm just done. I'm so sick of like, we've got all this stuff going on and I need a different system.

00;05;31;20 - 00;05;48;19

Unknown

Yeah. So I think it was a couple of those, you know, mixed in, but I was still being paid as a full time marine. And so I had a, you know, solid salary. So I think my thought process was, was like, I need to grow the business. And so I'm just going to pour everything back into the business for whatever business purposes that I need.

00;05;48;21 - 00;06;07;05

Unknown

And so that's what I did. And I got to the end of 22, and I was like, I should still have something for the amount of business that I did, like, you know, kind of like my, my first year in and I did it. And so I went back to the drawing board and, you know, remembered about profit.

00;06;07;05 - 00;06;27;00

Unknown

First read the principles quickly and then like, I need to dig in on this again. Now that I'm operating an actual business that brings in real revenue, has expenses and get it, you know, where I'm only spending what I'm required to spend or, you know, like the what's in my expense account, what's left over, essentially. Yeah. No, I love that.

00;06;27;01 - 00;06;49;02

Unknown

It sounds like you didn't treat it like a lot of people do, where it's just like, okay, here's my accounts and I'm going to do my transfers. Like you, I actually understood the concept behind profit. First of what is trying to help you with. And since we've talked offline before and now multiple occasions, I want to you to talk about how did you cling to the the actual owner's comp account.

00;06;49;02 - 00;07;21;15

Unknown

And like, I know that if you don't mind sharing like that journey as well to like you have that one pretty well funded. But a lot of people sometimes struggle with paying themselves. So how did you, with the profit first help or with the first system, really attack that owner's comp account? Yeah, I think it probably took about a year and some change, probably 18 months, to kind of really formalize what I wanted to do because, you know, essentially got to a point where I would pay myself directly right now, I had payroll and all that kind of stuff that that does that.

00;07;21;15 - 00;07;38;20

Unknown

But I was just transferring money over and I was like, get to a place maybe where, you know, my funds would run low and then, you know, kind of get stressed out. And then that would, you know, transpire over into my life and like, you know, being too stressed out about where my money if I'm going to get paid that month or not.

00;07;38;21 - 00;07;57;14

Unknown

Now, lucky for me, I was retired from the Marine Corps and I had some other, you know, income that came in. So I was like on that front, I was comfortable. But I'm not just trying to live a comfortable life. I'm trying to live like, you know, a big life. And so, I wanted to make sure that I had, you know, the ability to pay myself for long term.

00;07;57;14 - 00;08;17;26

Unknown

So I think the idea kind of like, formulated over that period of time. And I was like, I really want to build my owner's comp account to a position where if I don't make another sale while I'm getting paid and my wife is getting paid for the next year. So I was on a mission for that, and it took me probably 8 to 12 months.

00;08;17;26 - 00;08;37;02

Unknown

I can't remember exactly to really fully achieve that, and I've had that now successfully for over a year now. You know, recently since we last spoke, I did make a loan out of that to something because it was like a it was like a short term thing. And I've already gotten I've gotten the money back and like, you know, I can I still have everything in.

00;08;37;02 - 00;08;58;10

Unknown

But it was like I wanted to execute this position and I had a sale coming up. So I executed the position and then the sale actually happened. So I was in a good place, but I still left of reserve of like four months in there and I already had money in my income account, so I knew I was going to be able to replenish it and everything else.

00;08;58;11 - 00;09;29;18

Unknown

So it it took a while to, to formulate and figure out, but man, it has put my mind at ease knowing that like, I know my paycheck is coming. You know, I've got a year's worth of salary saved up for my wife and I. Now I just, I need to pause here for everyone listening like this is if I had a model of like the profit first system, I would want you to listen to this podcast as the model, because Justin didn't just do what's typical, but I think that's very typical of Justin, not to do the typical, where most people say 3 to 6 months right of reserves, whether that be for their personal

00;09;29;18 - 00;09;47;09

Unknown

life or whether that be in their for their business finances as well. And Justin said, no, I want a whole year's worth so that it sounds like that that gave you incredible peace of mind. It also gave you the ability to do this alone, where you still had four months to be able to pay yourself from this account, but you.

00;09;47;11 - 00;10;03;10

Unknown

So you still had more than a quarter worth, so more than most people. But then you were able to do that loan. You've already gotten paid back, and so you paid yourself. And being able to honestly get interest in whatever you wanted from that account. So I'm just this was sidebar. This is not a question for justice. This is more for you, the listener.

00;10;03;11 - 00;10;19;18

Unknown

This is what I would want you to go into and let this mindset, because of the incredible peace of mind he has and because of what he's also been able to do with that money while it's sitting there as well to and the options that Justin has, like if a bad market were to come, if a great markets to come, he's got the opportunity.

00;10;19;18 - 00;10;39;06

Unknown

So just wanted to take a pause there and just say, if you're listening to this, listen to Justin, okay. I didn't want to ask as well to just your wife and spouse works with you in the business. How was she feeling about going into the profit first? Was she all for it? It sounds like you like the security and stuff.

00;10;39;08 - 00;10;53;02

Unknown

Is she on the other side? Like, oh, why are we saving all this money? Or was she like, hey, no, I love this system. We need to be saving this money. I just want to hear from your perspective what her thoughts were, or did she even think about it at all? I think she just followed my lead, you know?

00;10;53;03 - 00;11;19;22

Unknown

But we've we've been together 21 years now as as a couple. And then we'll be married 20 years later this year. And so we've, we've kind of built a life around being a little bit more, I don't like to say frugal or cheap, but like, you know, being, you know, finding things of value and saving money and putting ourselves in a position where we're not worried about what we're going to be able to, you know, do in our financial picture.

00;11;19;22 - 00;11;35;18

Unknown

And she has seen those fruits over time. And so she does trust that judgment. So I think she thought it was a good idea as well. So she was on board with it. I would have to say, because, you know, it's it's not only me getting paid out of there, you know, she gets a paycheck out of there as well.

00;11;35;18 - 00;11;52;29

Unknown

So it's it it helps her and, you know, so she trusts that judgment and, you know, follows me as the team leader. All right. I have to pause the episode real quick. If you're a real estate investor who's tired of wondered where your money is going or why you're closing deals, but still feeling broke, you need to talk to simple CFO.

00;11;52;29 - 00;12;26;02

Unknown

Simple CFO is profit first certified and fully endorsed by Mike McCall, which the creator of Profit First himself. Our team specializes in helping real estate investors finally get control of their cash flow. So you keep more money, you pay yourself consistently and build a business that doesn't run on chaos. We'll help you implement the profit first system the right way, so that the financial processes you've been missing, and give you a dedicated fractional CFO who actually understands investing in keeping track of your numbers on flips, wholesales, rentals, private lending, all of it.

00;12;26;02 - 00;12;52;09

Unknown

So if you want predictable profit instead of living, deal to deal, head over to simple CFO and book your financial clarity. Call today. That's simple CFO. Stop living in confusion and start keeping the money you work so hard to earn. Now back to the episode. Awesome! Well, I love hearing that. And I love hear that you're both on the same page and that you both have used this for you and your family as well too.

00;12;52;10 - 00;13;08;05

Unknown

It's like, it sounds like you're already frugal and you've got that mindset and mentality, but then you're also using it for the benefit of both of you as well too. And you're able to do cool things like lend out there if you want to or whatnot, and still have more than most people have in their owners comp account, which I just want to commend you.

00;13;08;05 - 00;13;29;08

Unknown

And then also, like I said, if you're listening to this, there's a good model for the owner's comp accounts for sure. Now, on the other side, a lot of owners sometimes nail part of the profit for system, but then they struggle with another part of it. Has it been anything like that with you? Has it been an account or the transfers or the system?

00;13;29;08 - 00;13;50;09

Unknown

Or like the, I don't know, an assessment or like what? Has there been anything that's hard for you to either do consistently or jump into or anything that's been lacking? And why do you think that is? Or what is a part that you struggle with? Or some people might struggle with profit first, and I actually get extremely excited about doing the transfers every month, you know.

00;13;50;12 - 00;14;10;19

Unknown

Yeah. So like I get like excited about it. Like it's I, I used to do it in the beginning. Kind of like how Mike you know recommended to which was like 10th and 25th or something along those lines. But now that I've got myself in a position where, you know, I pay myself monthly and so I just do it on a monthly basis and I'm, you know, financially in a good position there.

00;14;10;19 - 00;14;28;10

Unknown

So I, you know, I just do it on a monthly basis, usually the first or second of the month. And, you know, I typically have 3 to 4 months in my account. So I, you know, that's pretty it's not like I'm rushing to get money over there. I've got goals for that to to to go up in the future.

00;14;28;10 - 00;14;54;27

Unknown

But I would say that I just enjoy the system because it gives me so much peace of mind that I don't like. I don't balk at any of it. I think that probably the worst part, and I'm thinking every entrepreneur thinks the same thing is the taxes. You know, putting money aside for the taxes. It feels good to know that it's there, but also that, like, I got to send that out to the IRS one day and, you know, hopefully try to keep as much as possible.

00;14;54;27 - 00;15;16;01

Unknown

But yeah. Yeah. Well that makes total sense. And I love that what you brought up because a lot of people don't love the tax account, but they love having the account when the tax time comes. So that's definitely another peace of mind account that you just keep on the back burner until you need to use it. Just make sure if you do a loan out of that account and do something that you have it back by the time that you need it.

00;15;16;01 - 00;15;49;17

Unknown

So that's the only my only piece by there that I'm going to say out to everyone listening. But you also mentioned with what you just said, that you have a strong operating account where you can do the transfers on a monthly basis because you're not living paycheck to paycheck, even in the operating account, with that reserve in there at the 3 to 4 months and being able to transfer like you do, what can you do as a business owner, like with Profit First and having those reserves that you may not have been able to do that first year or like when Before Profit first.

00;15;49;19 - 00;16;09;16

Unknown

So I was in business so new and I and I didn't need the income in the beginning. So I'm probably a little bit different than most people, you know. So like luckily I learned the lesson and I've really been profit first ever since I've, you know, transitioned from the military into real estate full time. I already had the profit first system going.

00;16;09;17 - 00;16;29;26

Unknown

I was already building up my account to have like a couple months worth of reserves and stuff like that. So I personally really don't know a business time with without it. And so it's like I kind of started right off the foot, you know, off on a great foot. And it's just helped my business, you know, from starting that way.

00;16;29;26 - 00;17;01;15

Unknown

I know most business owners probably don't have that, you know, start off in the path. I did have that one year of time. But I, you know, I was had a full time salary coming in at that at that point in time. So little bit different for me. However, I would say being to where my accounts got skinny and feeling that stress, it was, it was tough and hard to be disciplined, not to take money out of the tax account, you know, or something along those lines.

00;17;01;15 - 00;17;22;12

Unknown

And just like put in the work and, you know, hey, build it back up, you know, get revenue into the business and just keep making it work over and over again. What I'm hearing here is no matter where you are in your journey, now is the best time to start this system. Because if the earlier you start it, the more you reap the rewards later on in your business.

00;17;22;12 - 00;17;39;26

Unknown

So even if you're doing your first deal, you want to have good habits like Justin has with his money. Way more deals into it than if you start ten years down the road. Because that's the number one thing we hear with people we work with. I was like, where was this ten years ago? Or where was this when I first started?

00;17;39;26 - 00;18;01;00

Unknown

And that's where Justin is just also reinforcing that, like he's living a better life as a business owner now because of good practices you put in early on with Profit First. And honestly, he became a master of money, a master of cashflow. You do not have to be a master of accounting as the business owner, but you have to be a master of money.

00;18;01;00 - 00;18;19;03

Unknown

And that's what Justin has done, which I did bleeds into great into my next question that I have for you. You've been intentional, Justin. Also, when we've talked offline about being intentional, of taking time outside of the business as well to of like time with your family, time to go on trips. You're literally getting ready to go on a big trip here and going across the pond.

00;18;19;03 - 00;18;41;08

Unknown

So what had to be true financially and operationally for you to be able to take those trips or to step back or have stuff where you could have those fun times and take weeks off at a time. Yeah. So one of the promises I made my wife was if we moved to my hometown, that I would figure out a way to make sure she could go and visit her hometown every year.

00;18;41;08 - 00;19;02;01

Unknown

So I made a commitment and I had to keep to it. Luckily, I had the profit first system. And Mike, he talks about it in the book and I believe you do as well, and yours that you know how you can use your profits to do fun things for you and your family. And so he had some examples in the book there about how they use profits to go on family trips.

00;19;02;01 - 00;19;22;25

Unknown

So I was like, wow, that's a really cool idea. And that is how we can fund these trips to Sweden and other things of that nature, along with, you know, going to what I'm looking for. Trips on, you know, we like to snowboard, right? So that's another thing that we that down and done and other things of that nature.

00;19;22;25 - 00;19;43;26

Unknown

So we try to take the profits and do fun things with but also not spend it. All right. I've now learned, and I use a profit first style system to take a portion of the profits for fun things, a portion of them to do important things like investing in debt, pay down for certain items, and it's now morphed into things and to give to our church.

00;19;43;26 - 00;20;03;02

Unknown

So we give 10% of those profits, you know, to our church or to a ministry that we support. So that is how I've looked at like profit first on how I can use it to not only pay me a salary to like, you know, get through the day to day and, you know, the bills or, you know, just your typical monthly expenses.

00;20;03;05 - 00;20;27;12

Unknown

But how we can enjoy those funds together as a family in like by taking trips, we're trying to go through a house remodel that we're living in, so trying to take funds and allocate them from that. So we've got some different things that we've been doing in profit first has given me the ability to set myself up and my family up to be able to do those things.

00;20;27;16 - 00;20;43;17

Unknown

Awesome. Now, I love hearing that. What about on the operational side as well too? Because it sounds like you've mastered the financial side to be able to do these things. And I love what you said to the word commitment. A lot of people just don't know what they want to commit to, to be able to have a system in place, to be able to do those fun things like that.

00;20;43;17 - 00;21;02;01

Unknown

And so I love that you had that commitment. But what about on the operational side to be able to not be literally in the same continent and like going away for several weeks at a time? Yeah, that's a great question. So that's the way I kind of started that. So since I've gotten back down here, thank you for giving me back on track was I had to plan out trips.

00;21;02;01 - 00;21;18;26

Unknown

So we got here in 22. We were having but we were having a trip in 23 coming. Right. And so, you know, I was going to have to set up my business in a way. Well, the first year was a struggle. Bus. Right. I had, you know, bitten off a lot. I had some partnerships and was trying to like, had just started a new thing, a couple new things.

00;21;18;26 - 00;21;34;11

Unknown

And I'm in Sweden for like, I think two and a half weeks at the time, and my wife is helping me in the business and we're trying to work together while we're there. First time working together now we're in a different country where we're used to like being relaxed and on vacation, but now we have this business and that was a struggle.

00;21;34;11 - 00;21;52;17

Unknown

And like learning, you know, together, you know, how our next phase of life was and then, you know, so it was pretty stressful that first year, second year, you know. But but this is what was cool was that we had done we had had our highest grossing month at at that time in our business. So that was really cool.

00;21;52;17 - 00;22;12;21

Unknown

Then we had our second year where we were over there. This time we had had brought on, you know, an employee that we were working with, which was great. He took over some responsibilities for Lena and I, and he did way better at both of them than we did. And we had somebody there that was able to handle stuff on the ground while we were gone.

00;22;12;21 - 00;22;32;00

Unknown

Then last year we had a little bit larger of a team, and so we had more people that can handle some of the, you know, some of the nuts and bolts of a lot of this stuff. Now, we were still doing meetings. I was still taking calls, still helping, you know, the business on we had our team calls once a week and, you know, was consistently doing that kind of stuff.

00;22;32;03 - 00;23;02;00

Unknown

And we had started another new business. So we were kind of following up on that type of thing. And it was it was a challenge, but it was easier. We had more a little bit more time. And so this year we're taking the longest vacation that we've, that I've ever taken, which will be like four weeks and we're going to stop in France, and then we're going to go on to our family's home in Sweden and, you know, visit there, and we're going to see how it goes, because now we've all done it together as a team like last year.

00;23;02;00 - 00;23;17;09

Unknown

So now we kind of understand some of the things that we learned from last year that we want to implement and get better this year, because ultimately, we want everybody on the team to be able to execute those types of vacations and be able to go away. Maybe they're tied in a little bit because it's a small business.

00;23;17;12 - 00;23;34;25

Unknown

However, their able to spend some time with their family and enjoy what it is that they're doing. Yeah, no. That's awesome. And I love that you've really leveraged the systems to create the life that you want to live, where, and you're helping the people on your team do that as well too. Like you're setting a model for them.

00;23;34;25 - 00;23;51;01

Unknown

It sounds like to being able to say, here's how we're going to manage a money, here's how we're going to manage the operations of the business. And I'm going to take this four week trip and be able to trust the business and trust the people there, and trust the money that we've set aside in order to take this time off and be able to have that fun.

00;23;51;01 - 00;24;07;19

Unknown

And then you're wanting that for the people on your team as well, too. And you're setting that model an example, which again, calling back to, if you're listening to this, this is a great model, an example of if you're in the real estate business, even if you have multiple businesses like Justin, it is possible. It's possible because I don't know.

00;24;07;21 - 00;24;22;15

Unknown

Would you say this, Justin, that because you knew the money you could hire the people you needed to for the right seats and to be able to have that financial like peace of mind, to be able to say, hey, at least I'm covering the seats that I need to and starting to build it that way instead of what most people do.

00;24;22;16 - 00;24;43;27

Unknown

It's just like, my hair's on fire. Let me just get a button. This seat over here. I don't know, could you be more intentional about hiring and getting the right people in with having the finances in place? Would you say that would help on the journey? Yeah, it definitely did. So when I remember back when we brought on our first employee, Brian, who's now a sales guy on our sales team, he's done the, you know, one of one investment with us.

00;24;43;27 - 00;25;08;10

Unknown

He wants to do some more. And I was a little uncomfortable bringing him on because, like, oh, man. Like, now I've got to pay this person. I'm not sure. He wasn't sure about me. Right. So it was like this. We didn't know each other. We were kind of, like, brought together and. But when I sat down with him, I could tell, like, he was a great human and that he seemed to to be he was going to be somebody good for the team.

00;25;08;10 - 00;25;27;21

Unknown

That was the only person I, you know, I'm bad about, like just hiring people like, oh, yeah, you know, I read you, you you seem great and I'm not going to interview anybody else, but I usually put things on the trial basis and I'm like, hey, like, let's do this together. Let's commit to working together for 90 days or 60 days, whatever the case is.

00;25;27;21 - 00;25;45;22

Unknown

And then let's reevaluate to see if it's working for you and if it's working for me. And then we can we can kind of go from there. And we did that with him. And I could see right away within 30 days that like, oh my goodness, my business has gotten better. I'm getting better. He's getting better. He's improving our systems.

00;25;45;22 - 00;26;05;11

Unknown

And then, you know, we had him on the team and then he got a sales license or he had passed his exam while we were in Sweden. So that was like, oh wow, this is cool. So I started sharing commissions with him. By the end of that first year, he was on the team. And then that next year, the full year, like in 24 or was it 25?

00;26;05;13 - 00;26;29;23

Unknown

He started, you know, getting executing his own sales and, you know, getting things done. So it was a very cool way that we've, you know, built the team over the years. And we're not very big, you know. So it's we're slowly growing it as we feel comfortable that, hey, we need a new employee and we kind of wait until we like, we have to have one.

00;26;29;24 - 00;26;49;18

Unknown

And then it's like, look, now we're bringing on somebody because we need someone absolutely to really help the business go to the next level. So we're on that phase now, and we're bringing on like a inside sales agent to help us manage our database, because I just haven't had enough time to really connect in there to to grow it and nurture it as best we can.

00;26;49;20 - 00;27;11;01

Unknown

Yeah. No. Awesome. I love this because you put the systems in place, you have the money where you need to to be able to make these decisions and bring the right people on. I also want to I only have one more question for you, but before I say that I was at an event years ago and the guy stood up there and he said, A lot of people start their businesses for their family, but they end up doing it to their family.

00;27;11;01 - 00;27;30;29

Unknown

And I think, Justin, no, he's a great example of someone who's doing it for his family because of the commitments you've made, and you've actually held up those commitments to go to Sweden and to be able to take these trips every year and to be able to hold up those things. So I just think that's incredible how you've been able to use the proper system to be able to help you get to do the things that you want to do with your family.

00;27;30;29 - 00;27;47;26

Unknown

So saying all of that, this last question here for someone who makes good money, but they don't have any idea where it's going every month or they're at the end of the year, like you were that first year. Like, where did it all go? What do I do? What's one thing you tell them to do this week to put them on the right track?

00;27;47;28 - 00;28;07;24

Unknown

Well, if they're a business owner and wonder where all their money is, I tell them to read profit first. I'm not kidding. I tell people all the time about that story and like, I'm like, if you haven't read Profit first and you're new in business, you need to read profit first. You need to implement it immediately. And then I if I see them again, like later, I'm like, hey, have you read the book and have you implemented this?

00;28;07;26 - 00;28;20;20

Unknown

I think we may have lost either for a second, but you know, I ask him, I follow up with him. Did you read the book? Have you implemented the system? And they're like, oh, I've got it on my shelf. I'm like, well, you need to read it like you need to do it because it definitely gives you the peace of mind.

00;28;20;20 - 00;28;44;01

Unknown

And so I had last year was in Sweden. Right. So you have a little bit more time when you're on vacation to kind of think through and do the things that you, you know, we had recently had more income sources kind of coming in and I'm like, where's all this money going? Right. So profit first, kind of like, you know, I was doing my allocations, I think, and I was like, oh, I could probably make something similar to this.

00;28;44;01 - 00;29;02;23

Unknown

So that way I know where all of these, this money is going. Now, Lena and I have had a budget since like 2015 or something like that. So I can go back and look over there. I'm not talking about a budget. If you're not on a budget, you need to figure that out first, right? That's like baseline. But it was like, I have this extra money, like, what should I be doing with it?

00;29;02;23 - 00;29;22;16

Unknown

And so, like, I thought about it and I just put something in my notes app on my phone, you know, that's like, okay, well this money, I don't I don't plan on having it forever. So I don't ever want to like, count on it for anything. So I'm just going to use that money to give to my church, and then I'm going to put some money aside for taxes, and then everything else is going into an investment.

00;29;22;17 - 00;29;47;20

Unknown

Right. So I just put that aside right into an investment. And then I have this other income. Well, I plan on doing this for a while. So, you know, I will run that through my allocations of 10% to the, you know, to the church, 25% towards debt pay, down 25% towards, investments and then like 40% towards doing fun things, whether that's vacations or, you know, renovations and stuff like that.

00;29;47;20 - 00;30;02;13

Unknown

And I have it all listed in their each income source. And so now if I'm like, what was that that I have to do? It's I go back, just like I did in the beginning of profit. First was, you know, every month I had to remember like what was my allocations and now it's stuck in my head. So now I know.

00;30;02;13 - 00;30;18;21

Unknown

But, I could go back and look. Oh, yeah. This is what I'm supposed to be doing with those funds. And then that's what I do, and I execute. And it's it's tough, though, because you're like, man, that was a good profit. You know, quarter. You know, I could take some of that 25 that I was going to invest in.

00;30;18;21 - 00;30;31;13

Unknown

I could do something else fun with it. But like I'm like, no, I got to do it so I, you know, stick it in there. So I've been doing that for almost a year now. In July it'll be a year. Awesome. Now I love that. And I think that gives a lot of people just the hope to start somewhere.

00;30;31;13 - 00;30;45;15

Unknown

Start with reading the book. Start with implementing small and just getting to where you can do this consistently. Justin, this has been awesome. I think you've given honestly a lot of people just hope of like what the system has done for you, but then what it could do for them and get them to where they want to be.

00;30;45;15 - 00;31;04;19

Unknown

Now you provide a ton of value here. Is there anywhere that people can reach you or that you want to give out as far as like connecting with you? Yeah, definitely go to that in the second. I do want to point out, right, like I am human and I am not perfect. I know David's done a really great job of like, you know, talking, giving me a lot of accolades, but it's been constant learning.

00;31;04;19 - 00;31;22;16

Unknown

I run a group locally in our town called for growth, and that's me being relentless about growing and, you know, learning, and that's going to take failures. I'm not always the best dad, not always the best husband, and not always the best business owner or partner. But my goal is to be better every day, and I'm trying to to work towards that relentlessly.

00;31;22;16 - 00;31;44;25

Unknown

That's why, you know, I believe in that. People can definitely, you know, connect with me. The easiest place is on Instagram just to know real estate. So at Justin, no real estate. And then that's the same as my website. So just to no real estate I see it on the screen there. So definitely if you would like you can get to all of our social media through our website.

00;31;44;25 - 00;32;01;06

Unknown

You can connect with me. You know, I think it's got my business line on there that you can, you know, go to my phone. So you're going to you're going to be able to get hold of me. But if you're interested, I would love to connect. I, you know, love people, I love entrepreneur, I love Florida, I love real estate.

00;32;01;08 - 00;32;26;20

Unknown

And our mission is to help people build generational wealth to real estate, because it's really helped me. Awesome. Well, Justin, you've been a great guest here today. And I just want to encourage people if you want to connect with Justin again, his website is Justin No Real Estate. And that's also where his social media, everything else there if you want to connect, if you're in the Tampa area, I highly recommend looking them in, looking them up and getting part of that group as well too.

00;32;26;20 - 00;32;42;17

Unknown

But what I want to do here at the end, if you are struggling with your finances, you don't know where your money's going. If you're making money but feeling broke and you want to get back on the right track, you go to a simple CFO, you can book a call there. We'll take you, walk you through. Okay. What's your next best step here?

00;32;42;18 - 00;32;59;11

Unknown

Do you just need the numbers? Do you need profit first? Really helping you diagnose like a doctor. Like, okay, what's sick in the business and how do we get it back on track. So go to simple cfo.com. And remember if you're on this call, if you're listening to this podcast recording and you want to be like Joseph, what do you need to do.

00;32;59;11 - 00;33;22;15

Unknown

You need to make profit a habit in your business, not just an event that you're looking for in the future. Thank you for listening. And Justin, again, thanks for being a great guest on today's show. Yes. Thank you David, I appreciate you. That's it for today's show. Be sure to subscribe, review and share this episode. If you're serious about financial systems and keeping more of your profit, visit simple CFO to take your free discussion.