Financial Feedback Loops: How Better Systems Build Long-Term Wealth – Episode 679

This transcript was auto-generated and may contain errors.

[00:01] Welcome to the Prosperity Podcast. Podcast listeners, welcome to the podcast. We’re going to be talking about feedback loops and how we can use feedback loops for our financial success, for our, and fill in the blank, could be spiritual, physical, mental, whatever that would be. So Kim, as all things happen, we got to set the definition and get the language down first. So what does feedback loops mean to you? And then we’re going to take and start unpacking. Well, it’s interesting that you bring this up because I heard somebody say the other day that they had put all their finances into ChatGPT and ChatGPT gave them some answers. And the person was wise enough to realize that the feedback loop of a ChatGPT that

[00:56] I’ve already been working on is going to be impacted by what I have already fed it. And ended up really being a bit of an echo chamber and frankly had some very disturbing and correct financial advice. So that’s the negative side of the feedback loops. Now, the positive side of them, and you said it well, it could be financial, mental, spiritual, physical, you name it, is that it might open the door for us to try something new or iterate in such a way that we could learn even more from the feedback that it was giving us. Now, this, of course, is only available to you if you’re willing to be open-minded and if you’re still willing to think because AI is super helpful, we’ve still got to have our brains turned on because AI is a summary of the Internet and

[01:48] it’s the middle of that summary. So you have the far, and it’s not political, but you have the far, far left side, the far right side, and then you have the middle. And a lot of times where we are living might be on, again, not political, left side, right side, top bottom, however you want to look at it. But that middle space can be instructive, but it can also be really gray, black, white, and then gray in the middle. And so again, we’ve got to turn our brains on and really look at the information, listen to the information as it’s coming back to us in this feedback loop and making sure that we are making the decision ourselves. In the strategic coach community, we have a 5% rule. Your first 5% into an AI must be you.

[02:38] You cannot delegate your thinking to the AI. You’ve got to think, and that then comes up in the prompts that you use the information that you share. And then the last 5% of your AI needs to be you. 5% rule, first 5% you, last 5% you, because this then gets you to benefit from the AI without turning over your agency, your ability to have an impact, your perspective, the life that you’ve led with all the wisdom that you bring to the table. And so feedback loops are so helpful. We can build them. We can tap into one that is already done. We can let it circle us the way that a loop does and go higher a little bit every time, a little higher and a little broader. I like to think about it like a tornado, but like a nice tornado that

[03:35] enables you to make progress as you go. And a lot of business is loops, right? It’s a system that has to be basically repeated every single time. So when we can start to bring in AI to do some of that repetitive work, then that frees up humans so that we can be a little bit more creative. And that’s how I’m viewing this perspective of loops. What would you add to that? Yeah, I really like that. In fact, I hadn’t heard of the 5%, 5%. I think that if I analyze the projects that I’ve done and had the best results, I’d say that there’s definitely the 5% on the front and the 5% on the back. You know what kicked off this conversation, which is strange. So in taking terms, AI with data, meaning data if it’s doing it for our

[04:35] finances or work or whatever it would be, it’s actually pretty easy. But data AI with feelings and I know feelings, but AI with feelings is harder. And I had a breakthrough a couple of weeks ago with it. And it’s a very simple breakthrough and I’ll share it because there’s a prosperity lesson to it. And the breakthrough is this, that I was tracking the work that I got done. And there’s like, you know, call it a task tracking our project and how much things get done. But at the end of the day, there’s a feeling that you have like, well, this day was so good. I felt energized, I felt the momentum. I felt better today than whatever. And I had been architecting that, but it messed up. And I messed up because I was not providing the full feedback loop.

[05:36] I worked at architecting it, but I didn’t say today was a good day and then have it extract. And so I went through the process day after day. Today was a good day because of this. Today was a challenge because of this here and here. After about day three, that’s all it took. The tools came back and they said, I’ve noticed that if you work in this style, your mood is better and you have more success on this. And it’s a feeling, but it became a feedback loop. Unreal. So my question for you was, where can we provide more feedback loops? And we talk about, you know, cash flow. Monthly, we can look at our cash flow. Monthly, we can look at the investments that we’re doing. Monthly, we can measure things.

[06:29] But we need feedback loops. What does that look like to you, Kim? Well, one of my most favorite cash flow control structures actually operates as an app on your phone and has the feedback loop already built in. It understands what you’re attempting to achieve because it’s asked you some questions at the beginning. It understands what your monthly and literally weekly and daily cash flow look like. And over just as short a period as 60 to 90 days, we have families that are often upper income, but don’t feel like they’re getting the benefits from that. Be amazed at the amount of savings that they can create. Savings is a noun, the storage of wealth. And it’s because of the feedback loop. It’s very motivating.

[07:25] It’s very momentum driving. So what you were talking about with the way that your AI realized, hey, if you’ll do this, then you’ll get these kind of results. Well, that’s what our cash flow control structure is about. And I love helping young families with this because it’s such a critical time to be able to catch a family and start to layer in that really boring impact of savings as a verb, which then creates savings as a noun, that typically no financial planner or person is going to help them with. Everybody wants to talk about investments. That’s the sexy stuff. But the fact is, it’s the savings behavior. And yet, we don’t want to budget. That’s not motivating. Definitely not momentum building.

[08:09] And so this cash flow control structure that we teach and create and provide is transformative for young families. And they often then get their entire family involved. I mean, age dependent on the kids, of course. But really, kids as young as five and six can play along with the goals of that cash flow control environment. And our statistics show that over a lifetime of doing this can make a $2 million difference with just your basic family that’s earning low six figures a year, 100, 200,000 a year kind of thing, make a $2 million difference with just the installation of a structure that is a feedback loop that’s already ready to go and proven. Ooh, that’s so good. Makes me think, if we play a little bit of multiplication with this,

[09:04] if we get people using that app, where now proactively, they’re getting their cash flow and their gamification, we’ll call it, but they’re getting the feedback loop there. Yep. And they stack it on and they’re able to say, hey, our family is more excited than ever. And a tool can come back and say, why? And be like, well, because we feel like we’re making momentum here. Oh, work is going better here, why? Like there’s something to that that I imagine is an accelerant, like we have seen with anything else. And for you listeners that are learning, and again, being part of this podcast it’s a community of people that are constantly striving and learning and growing. And we may be onto something here

[09:59] because we are multiplying and that’s one of the principles of prosperity, to multiply. And so that’s what’s cool about this conversation is that one, we’ve got those feedback loops in place, there’s the app in place. If you want to get your hands on that so that you and your family, so this could be grandkids or whomever, want to access it, use the email address hello at prosperitythinkers.com and you will get a special invite link. This isn’t one of those like you’re not gonna be able to access this through the TikTok shop or things like that. Like it’s something that will be helpful. And with it is incredible resources to help you. And then maybe you can take this episode and say, where else can I get feedback loops

[10:50] on the feelings? And I use that as like air quotes to be funny because that matters as well. So Kim, any parting words before we go? Well, it is interesting, we’ve said forever that money isn’t everything but money affects everything that matters. And that’s really where those feelings come in. And so if you can get yourself in a space of momentum about whatever is most important to you and it could be financial, it could be physically related, spiritually related, familially related, try that word. And know that you’re making progress. That’s really where momentum builds and drives. And because money affects all those things, this structure is transformative and we love helping people with it.

[11:36] It’s truly the best combination of AI plus human help. Yeah, I think that one’s gonna get clipped. Kim, thank you for sharing some wisdom on the episode today. Thank you for listening to the Prosperity Podcast. To take control of your money and have it work for you, visit ProsperityThinkers.com.