Financial AI – Episode 636

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[00:01] Welcome to the Prosperity Podcast. Prosperity thinkers, welcome to the podcast. First, we’re gonna start with a cool milestone. So this is the milestone that we were notified, this came in, letting us know about the podcast. And there are a lot of recognitions, awards, things that can happen. One of those is knowing that we are in the top 25 of all prosperity type of podcasts out there. It’s a global audience that we have. And that’s pretty amazing. It’s FeedsBot, we’ll put a link into there. Thank you guys for mentioning that. I think what’s so amazing is that it’s not just the awards, yes, like when the podcast, it’s been in top 100 in Apple and we’ve been doing this for episodes and episodes.

[00:58] I think the greatest reward is when emails come in or mentions on social. Do you get that feeling too? Like when it’s like that one person and they’re like, oh, we listened to this in the car and it touched my life. Absolutely. I love hearing from our listeners and I love seeing the specific comments and the reviews when they’re there as well. And I love helping on email. It’s, you know, in today’s world, you’re supposed to be too cool to do email, but I love email. You send me a specific question, you’re going to get a specific answer. And it is sometimes from my team, but it is mostly from me. And I enjoy engaging with people in that way. So yeah, super cool that we’re on FeedsBot’s Top 25.

[01:40] I mean, we are called the Prosperity Podcast. So it’s embarrassing if we were not on that list, yet we’re very grateful for that. And more importantly, we’re grateful for you, our listener. 100%. That’s what makes it. You know, the topic that I have prepared for today is it’s about the financial independence in an age of AI. And this ties in perfectly with what you’re saying, which is you respond to the emails. And I feel like, and this is my observance from reading like the four-hour work week a long time ago and being ultra-productive, that there was an era where it’s like, I only check my email inbox once a week and you know, whatever that would be. And now we’ve gone back to a world where there is so much AI

[02:38] that people want to connect with humans again. So why is it that the work that you do is human-focused instead of mass-focused? Because the human element in personal finance is what helps the rubber meet the road. There are so many apps and platforms and websites and et cetera, et cetera, et cetera, out there that are the robos, right? They’re AI or they’re some algorithm that are trying to help people with their personal finance. And they might even be mathematically accurate. Some of them are not mathematically accurate, which drives me crazy, but never mind that. They might even be mathematically accurate, but they’re not actually helping because it takes a human to help a human because money is a very emotional subject

[03:37] and why we can apply the math all day long. The fact is people don’t make decisions with math. They make it emotionally. And so our clients get even better results because they have us on their side navigating the issues. Whether it’s cash flow control, whether it’s life insurance, whether it’s a decision around a mortgage, and that ability to have a human directly speak to another human, to get personalized down to the penny guidance is what makes the difference. So bring on the AI. I’ll use AI in every possible way that I can, but at the same time, return to the real, which is human helping human. Yes, so dialed in. There are a couple of follow-up questions for you. One, you often are reading books

[04:34] and in the circles with people like Peter Diamandis who are AI innovators. You were at a recent event with a lot of people talking about finances and apps and making things helpful for parents to save money. There’s a variety of things, so you’re aware of the AI. You’re aware of the human element. As a… I’m sorry to put the title on you. As a thought leader, how do you navigate that? Because there’s what you say on stage and then there’s what you’re saying on the microphone and then what’s said at the family dinner table. Well, here’s the coolest thing, and I have thankfully, proudly been this way since the beginning of time, and that is no matter what stage I’m on, so dinner table, literal actual dinner table

[05:26] with my kids all the way up to, you know, stage in front of however many people, and no matter when in my practice it’s been, in other words, 30 years ago, 20 years ago, 10 years ago, yesterday, the foundational elements of my work are exactly the same. There’s been some nuances, there’s been some come and goes without a doubt that are up there in the periphery, if you will, but the foundational elements of my work, which are basically cash flow control and life insurance and a set of principles, I have seven principles of prosperity that I’ve worked with since 1999 when I sat down to write them down and they just came right out on the paper, boom, and they have not changed since. All of those, and it doesn’t matter

[06:18] whether I’m talking to an advisor, our podcast audience, you as an individual, or somebody else as a potential prospect, the advice, the guidance, the coaching, the products, the strategies, products are things we buy, strategies are things that we do, the foundational ones, all the same. I mean, how cool is that? A consumer can come to the training that my husband Todd and I do for financial advisors and sit in the room, and there is not one sentence that we would say that would be different because a consumer or a potential client or a client is in the room. Now, how many financial advisor rooms can say that? We don’t see that in today’s world anymore. No, no. We are in a world of noise. There’s signal.

[07:09] You just told us about seven signals, the seven principles. We’ll call those seven signals. We have all of this at our fingertips. You’re going back to principles of cash flow, and then you’re talking about some of the products and things that we do to navigate our life. Right now, we are mid-year. We are in a year where it’s kind of, I mean, I should say it’s almost always weird, like with politics and everything like that. Again, you don’t watch the news. I don’t watch the news. I pay attention enough to know what’s going on, but there are people that, again, on their stage of life, they’re going to say, OK, well, how do I bolster the cash flow? Or, oh, what are some of those products? What does that stuff look like?

[07:55] Maybe we can dive on that and then also really sandwich tighter on the principles. Absolutely. Well, the products start with cash flow. So principle number four is F-L-O-W, cash flow in, cash flow out. Capital flow, right? So we tend to think of ins and outs, but capital flow is moving dollars from one asset to another asset or sometimes through an asset, which I talk about a lot. And it is so imperative that we have strong cash flow, confident cash flow that we control. So control is another principle. And there is only one way that I know how to help somebody with that. And that is, and you can either do it on your own or you can do it with help. If you use help, a human helper, you’ll get better results

[08:46] like anything in life, right? We have trainers in our lives that help us with our physical selves. We maybe have people that help us with food. You know, we have people that help us with our businesses. Well, with your personal finances, you probably get better results, quicker results, for sure, if you get help. But you can do this on your own, and that is for cash flow control. Please stop putting your earned income into your checking account. You must insert a reservoir, a different account in the middle of that so that you’re flipping the flow of funds. Instead of all the inflows immediately dropping into the checking account and creating outflows, the inflows, the earned income, the investment income, the gig income, the spouse’s income,

[09:35] it should all go into a reservoir, and only the amount that is needed to live your life exactly as you are living today drops from the reservoir down into that checking account, because we will spend the money in our checking account. So that single act, setting up a separate reservoir and putting the income in there, drives that save-first behavior. Saving is a verb, in other words, the act of putting money away, because it happens automatically and it’s done first. And since the beginning of time, the idea of paying yourself first or saving first has been talked about, but it’s rarely strategized. It’s rarely where that rubber meets the road. And so setting up that separate account, you can call it a reservoir or whatever you want to call it,

[10:30] is the action that will get the results. At what age is it appropriate for someone to set that up? As soon as you start to earn income. Which means if you’re under 18, your parents have to help you. But if you’re over 18, you can own your own account. And as soon as you’re earning income, you want to have that set up, so that you are getting all the benefits of paying yourself first, saving first. And the natural control and confidence that you get from seeing that reservoir rise. And it’s so, so valuable. And I wish that I’d had it when I started helping personal finances over 30 years ago. But today we have apps and accounts that are fabulously helpful and so we can make this happen even easier.

[11:23] But as stated, you can do it on your own and get your own good results. And it’s as simple as setting up a separate account. Okay, okay. This episode we talked about AI for a bit. Again, you can do it all on your own. And you and I are both prolific users of like ChatGPT and Claude and all of these tools. And they’re all amazing. I probably spend legit like a couple hours a day with ChatGPT. Like I use it all the time and I’m coding, I’m doing work. The good that comes with it is the leverage we can get. The bad that comes with it is if you don’t know the destination or have clarity, you can get the most confident wrong answer and end up off course. So, listeners, if you’re trying to create that flow, that account,

[12:19] even if you’re like, hey, I got this, I’m going to do it myself, send an email to hello at prosperitythinkers.com to at least have a map of the destination. Is that safe to say? Yes, very well said. Because we need to remember that the AI’s knowledge is from the internet. And there are incorrect things on the internet. So, yeah, yeah. Applying that human helper along with the AI is the way to get even better results. Perfect. All right. Thank you, Kim. And for you listeners, if you haven’t set it up, you know where to go to do that. Thank you for listening to the Prosperity Podcast. To take control of your money and have it work for you, visit prosperitythinkers.com.