Building Wealth and Advice – Erik and Xavier Weigh In
Building wealth is the central part of a financial planner’s livelihood. So, entering into the industry, they’d be given good, sound advice… right?
Erik Garcia, CFP®, BFA and Xavier Angel, CFP®, ChFC, CLTC, share advice they’ve gotten while getting into the financial planning industry and why it’s not the greatest. In addition, our hosts discuss actual, sound advice on getting wealth. Xavier discusses his revolutionary new charity foundation (sarcasm) and Erik shows off his pasty scalp.
Episode Highlights:
- Erik shares the advice he received when he first started working, which was to buy an expensive car and house and get into debt in order to motivate him to work harder. (2:49)
- Xavier believes that setting up a goal to live below your means is a great way to plan and strategize for the future. (6:19)
- Erik explains the importance of saving for tomorrow, including retirement, college, a down payment on a house, and investing in a business. (14:19)
- Xavier mentions that a liquidity account allows individuals to access money without taking on unnecessary debt. (18:54)
- Erik cautions against getting into debt to make yourself work harder, as it can negatively impact your wealth and relationships. (21:10)
- Erik mentions that the goal of setting financial goals is not to get out of debt but to live within one’s means which is exemplified by the advice given to spend 50%, save 25%, and give 25%. (23:13)
Key Quotes:
- “Make it a target to live below your means, as opposed to setting that 50% of what you make.” – Xavier Angel, CFP®, ChFC, CLTC
- “If you can’t spend less than you make if you can’t live below your means, you will never be successful at building wealth because you’ll always be spending more than you make.” – Erik Garcia, CFP®, BFA
- “The goal isn’t to get out of debt. The goal is to never go back into debt again, right? The goal is to live within your means.” – Erik Garcia, CFP®, BFA
