Fitness Business School – How to Build Wealth

Full Transcript

Hey, Pat Rigsby here and in today’s episode I wanna talk with you about how to build wealth. Let’s get started.

Welcome to the Fitness Business School podcast, the show for fitness business owners who want to grow their income, increase their impact and improve their lifestyle. Be sure to listen to the end of this episode because we have a brand new special offer exclusive for listeners. So stay tuned.

I guess I have to start off this episode with that kind of common disclaimer. I’m not a financial planner, I’m not an accountant. I’m not anybody who works in any corner of the financial industry. I’m basically talking about my own personal experience. And for those people that don’t know me very well, listening to this episode I certainly did not come from a wealthy background. I mean, my dad continues to be a small business owner. Heck, he’s owned a small auto repair center for, I guess it’ll be, it’s like 38 or 39 years now never made six figures in a year personal income. For years my mom worked in that business. My parents divorced, and before my parents divorced, my mom was working in an office in kind of administrative roles in an elementary school.

So, certainly not a wealthy background. I mean, neither of my parents went to college. My dad didn’t graduate from high school. My first leg of my professional life on, as a college baseball coach, I never made as much as $30,000 in a year. When I got to my first opportunity as a business owner, I had a
pretty significant negative net worth due to student loans and a car loan and no real assets, and had a credit score that was below 600 due to me consolidating student loans, but leaving out one privately held loan for $600 that went into default. Imagine that student loans over 40, over $40,000, and a $600
private loan was, was the one that that pushed it over the top. But it was I mean, that was just kind of where I stood.

And my objective when that point came when I started my first business, was like, okay, how am I gonna turn this around? And I figured out a plan to turn around my credit score and my net worth and all that stuff, and set some goals for a seven figure net worth and700 at the time, I think was the goal for credit score and some of those things. And within just a handful of years, I had achieved all those goals and kind of figured out what worked for me. And, and I thought I might share that with you in this episode because frankly, I’m probably a lot more like most of the people who get into the coaching world than a lot of the financial experts that they may study online. I’m not a Dave Ramsey guy that was gonna go say, Hey, I’m just gonna scrape along on beans and live, live on a mat on the floor, and put off every bit of enjoyment in life until I’m old and gray.

I wasn’t a guy that just lived and died and loves spreadsheets or anything like that. I mean, I’m pretty much somebody who wasn’t comfortable with the money side of things. Nearly as much as I was with clients, with connecting with clients, I, I liked marketing and selling because I had recruited as a baseball coach, and I thought that it was very similar. But the things that, that I have found that have worked well for me have really been tied to just a, a couple simple beliefs. Number one is the fastest way to build wealth is to increase your personal income, because it gives you a lot more margin for error, right? A lot of people trying to figure out crypto or figure out how to be a stock market expert or something like that.

Man, there are a lot of people who spend all day every day doing that stuff who haven’t cracked the code. So I’m, I’m one of those folks who believes that if smart people are spending that much time on it and I’m dabbling in it, I’m probably not gonna do that well, but I can increase my personal income and it
gives me more margin for error. When it comes to what I invest in, I don’t have to be perfect. I can diversify, I can invest in different things. It allows me to have a longer time horizon. I don’t have to get some immediate r o i, I don’t freak out if the stock market goes down a little bit or even in some cases a
lot because I know that, hey, my current bills are paid and I can just look at the stock market the way that we probably wanna look at the stock market with a longer time horizon.

So you can make strategic decisions and not be feel desperate, right? And I think that as a business owner making, improving our personal income is largely with our in, in our control. The stock market is not, crypto is not, there’s so many things that aren’t. So that’s the first one. Focusing on increasing personal income is the fastest way I know to, to building wealth. And then the second thing that I would tell you is consider finding investments that can be relatively passive to put money into early on and month after month. Because a again, I may, maybe you are different than me, but I know I’m not smart enough to time the stock market and figure it out, but I can put money into index funds month after month. And over time with dollar cost averaging it has a high probability of working out in my favor, and it’s kind of a set it and forget it thing.

So the business that I’m pouring my heart and soul into, I can drive that and make sure that my immediate financial needs are taken care of. But then a percentage of that can go into something that is more of a long-term financial security play. Because I think a lot of people, they think, well, I’ll just put all
the money back into the business and there’s gonna be this big pot of gold at the end of the rainbow. And frankly, it’s just not how it works, right? Because most service-based businesses are not gonna sell for many multiples of their annual earnings. And you may make some money out of it, but not nearly as much as if you just took a little bit of the money each and every month and invested it in something as simple as an index fund. And, and that’s something that a financial planner can help you with.

You can certainly study up on it. There are plenty of resources out there, but that sort of investment is a simple and proven way that probably gives you the highest probability. Nothing is certain, but the highest probability of building wealth. Now, there are plenty of other people who are
super smart, like Doug Spurling is a close friend, a longtime client, now a partner on multiple endeavors who does great with real estate investing. And if I were going to invest in real estate, and I’ve done a little bit of that in, in the past, but if I were gonna invest in it, I would be learning from somebody like
Doug. If I were trying to get myself out of debt and turn my fortunes around, I would learn from somebody like Billy Hoaxer. If I’m running a business now, I’m probably looking at profit first or variations of that.

And I know Billy teaches a pretty powerful variation of that to help you get a handle on your finances. But again, I don’t know that we’re all gonna be decade millionaires or whatever else, building small businesses, but you can definitely have plenty of financial security and even build some wealth over time if you focus on increasing your personal income and investing in safe things as early as you can and often and let that magic of compounding take effect. So that’s how I would encourage you based on my own personal experiences and digging myself out of a hole when I started my first business. And those are a couple of people that I would lean on to get some help from if you want Build Wealth as a fitness business owner.

Thanks for listening to this episode of The Fitness Business School.

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