Day 1 of The 14-day Passive Income Challenge - PIES vs WISE system - Chaim Ekstein

[Music] welcome welcome welcome to day number one of the 14 day passive income challenge today we're going to talk about number one in the 14 day passive income challenge which i call reverse budgeting basically what that means is i can tell you one thing i've worked with people for over two decades and i have helped many people in their budgeting early in my career i helped many people the traditional way of budgeting just to find out after six months of working with them that it doesn't work why doesn't it work because let's think about let's be realistic we're talking about people with a lot of expenses we're talking about people with large families now if you are going to do a budget for them on paper it's going to work amazingly but then reality hits the yamchev comes on pacer your son's teacher calls you that you need to have an important a private tutor what are you going to do why are you going to tell the teacher i have to check my budget before you know it another 500 a month is gone in the traditional way of budgeting although on paper it sounds good but in my experience for people with large families for people with large expenses usually budgeting does not work so that's why i came up with this idea of reverse budgeting what reverse budgeting does is basically you take the pies versus the wise model and you work with that so before we talk about that let me show you what the pies model is and usually most people before i meet them now i guess most people that you know are working under the price model the prize model basically means that you take your income which is the i you subtract from the income your expenses and then whatever is left goes for savings now what is the problem with that and i'm sure you guessed it the problem is nothing is left because the expenses consume all the income nothing is left so what are you left with and that's why so many people don't make it and that's why this is called the pies model because the p stands for poor poor people usually work like that they're gonna save whatever is left and that's why they're left with nothing versus what wealthy people do they go with the wise model which is they take their income they subtract their savings before expenses and then whatever is left they spent expenses and that's why it's called w because they are the wise people so you see the pies people people who are overweight people who can't hold back from eating that pie of pizza when it's so delicious and so attractive to them they can't have the discipline and usually they end up with the same problems when it comes to when it comes to their savings when it comes to their passive income planning versus device people they do they just do it the opposite way in the coming days we'll talk about more technically how this could be done but the main thing the main thing i want to drive through today is and today's challenge in today's day number one of the 14 day passive income challenge is put in your ex your savings as part of your expenses before your expenses and only then when that is covered then you can spend whatever is left thank you so much for joining me in the 14 day passive income challenge i'm looking forward to hitting your success story and i'm happy that they include me in your passive income journey you