Financial Friday: Measured in Gold

0:00Welcome to the Real Power Family Radio Show, brought to you by Family Success Triangle. Where we talk about how we achieved financial freedom in two years by the time we were 30. If we can do it, so can you. We will bring you the people who can help you achieve financial freedom, time freedom, and location freedom. Learn how we integrated our business, investing and homeschooling into everyday life. Now, here is the Real Power Family, Eric, Lila, Devon, and Ethan. Welcome to the Real Power Family Radio Show. I'm your host, Eric. Well, when we have Lila, Devon, Ethan, everybody's here for this financial Friday. And I think we are going to start out. First off, it's going to be a good show. I'm going to tell you how much cheaper your living expenses are getting. And I'm not cherry picking data and lying to you and adjusting the CPI. I'm just going to tell you that for some people, very, very few people, but for some people

1:02that, well, took our advice many years ago, everything is cheaper today. And I'll explain that right after Lila tells us about a listener text that was sent to the most descendant of Brushwood. Yeah, they sent it to Brushwood and I got to read it this morning and it made me smile. So I wanted to read it for everybody. She said, I'm driving in Louisville and listening to the power team. Are they angels from heaven? I own a beauty salon and was scared to hire more people as I was thinking, I could just do it all to make more money. They answered my question. What the blank? This is the show, Zeta. Well, thank you so much, Zeta. And let me tell you many of the rumors that people have either tried it. All right. So your beautician, or at least you own a beauty shop. I know sitting in the barber shop, we talk about these things. And when my barber, I talked to him for almost a decade, more like five years.

2:06And I'm sitting there and it's like 2007, 2008. And I've been talking about this ever since I bought my first rental property in December of 2002. And he never wanted to hear anything about it. And suddenly at the absolute top of the market, like in the midst of the crash, he's telling me, oh, you got a my rental property. Go, have you not been listening to me for five years? I go, it was good back then. Now is an awful time. But by the time people are talking about it and your beauty chairs, it might be a little bit too late. So let's talk about what they say. Fast four to a few years, oh, I bought it first off, they bought wrong and then prices went way down. And now they're like, oh, real estate's awful. And anytime I say that, they frequently got in at the absolute top of the market. But everybody I said, you own less than 10 to you. And you're like, oh, yeah, of course, they are so awful.

3:07I know we have more than 400, okay? Less than 10 is awful. More than 400 is, well, literally more than 10, it gets easier and easier. By the time you hit 250, you're playing a totally different ball game. The breakover points for getting easier buying real estate are about 100 units. And then 250 units is another major breakover point. Now why am I comparing this to you hiring somebody to another nail tech or a beautician or whatever? Well, I think business basically the same, the same principles, both in all businesses and in life in general, a lot of the lessons are not exactly the same, but very, very similar. That's why in your book, Family Success Triangle, you talk about integrating business and family and all the lessons you learned, even when you were in the army, you can apply to real life to stuff you actually are doing nowadays, right? Yeah, being a platoon sergeant in the army is no different than being a mid-level manager

4:10and a corporation somewhere or starting your own business and hiring the first handful of people. And so will they care as much as you? Well, most of them won't. Every now and then you get somebody so dedicated and that isn't, it comes more with a family, not your family. I've had notoriously bad luck hiring my family and most people do because you're not going to be nice to them or you're going to be too nice to them and let them get away with things you'd never let anybody get away with. I have seen people cheat, steal, and impuzzle and most of them don't even think of anything wrong with it, but it wasn't anybody. We set up systems. So while you could steal, it would be way, way harder, like really hard. And this group of three business owners that were really good at business and made a lot of money, they built or bought multiple duplexes brand new and then they just gave them to, I think they're secretary or bookkeeper or something to run and I'm sure that went very

5:14well for decades. And then her daughter took over and by the time we met, she was straight up embezzling. She was telling the tenants, no, make your rent checks out to me personally. And she was putting it in her personal account, Devon, I see you with that face yet. No. And then paying the bills out of there and if there was anything left over, which of course she was paying her own personal bills out of there too, then she put it into the owner's account. And obviously there was nothing left to put in the owner's account. So she would call and ask them for more money all the time. And she didn't think there was anything wrong with this. So if you see all the problems with that, because you work in that. And that's why you had that look on your face. That's why I was laughing. Do you want to sit there and just press the button? Those things are cry that, oh my gosh, she's breaking so many laws or that's just, how could you do that? It's so awful. How could you do that? That's so awful as more of what I was going with. That is some people just don't know any better.

6:16So for the new business owners out there, the business owners that actually want to go from self-employed to owning a business where you can literally have a free minute to play with your family to take your wife or husband out and just have fun to jump in a gyro like Lila and I did on Saturday and just disappear right after breakfast. And we're like, ah, we invited a bunch of people over for a bonfire tonight. So I call you then I go make sure the farms mode and everything set up for the bonfire will try and be home. We actually showed up late to our own party. It was only about 10 minutes late. But I was on time. You were on time. I'm like, ah, one of the kids will be there. They'll come over and start having fun. And one of the couples that was meeting us there, they were out playing in the gyro with us. We were avoiding storms and rain. So they knew it was going on and they still had to go home and get their dogs and drive all the way down. And all we had to do was fly back, put the gyro away and drive for 15 minutes to get to

7:16the party. So we'd be them by almost an hour. But yeah, it's great that you can have free time to do that. That's the whole point. That's why we grow our business to make money, right, Lila? Absolutely. That's one of the benefits. It's one of the things we tried to show our children because a lot of people, when they've got a business, the kids see the difficult part, you know, the parent being stressed or the problems that come up. They don't get to realize all of the good things that come out of what you're doing. So you've got to show them both sides. The point of all this is, will someone steal from me? Yeah. And I really, the lady really didn't believe she was doing anything wrong that was doing the stealing. But as soon as they hired us, they couldn't believe the like the second month. I felt so bad for him. I don't think I wanted them to send me money because it, instead of writing a check for, you know, $1,500 reserve or might have been a thousand back then, I'm like, we'll just collect the money and keep it in there. And once we get your reserve billed up because these are in great shape, almost everything's

8:20rented. Yeah, it's not that there's a little bit of deferred maintenance. She wasn't keep him up with, but nothing bad. She was, you know, not doing a bad job managing and keeping people in there. She just was terrible with money. And when we did that and we sent them maybe the second month we managed, we had already filled up the reserve and sent them on the like, what, you don't need money? You're sending us money and said, yeah, that's why you own real estate. That's why you own a business is to collect dividends or have, you know, extra money left over at the end of the month that it pays you not the other way around. And they hadn't got a check in so long. Wow. The first thing is set it up. Just don't blindly trust and think they'll be as good or care as much as you. And if you get the right person there are people that are way better at different parts of our business than we are. And maybe they didn't start that way, but after they've done it for years and years and that's all they do every day, oh, I'm sure Megan can do stuff way faster and better than

9:23me. Even though I wrote the system and taught her how to do it. Yes. Right. And some of these other girls in there like the bookkeeper, I know everything. I do all the bookkeeping for my construction company, but that would be awful to be and they're doing data entry and filing things. I would not be any good at that. I would immediately find a way. I just outsource it as soon as the phone was ringing. I call the receptionist and hey, start filing all this stuff. Hey, what are you doing here? Let me go do your work on maintenance. Yep. See, it only took me an hour. I got the whole day worked on now. File more stuff. I'm not doing that. So yeah, figure out who is good at what and give them more responsibility there and then write a system which how complex was our system when we started Lila? What system? We didn't start with one. We had to create that. Yeah, we wrote it on sticky notes. Once we forgot something twice, we wrote it down on a sticky note and stuck it to my file cabinet. Yes. And then it fell on the trash and I had to figure it out again.

10:25And then we wrote it on pieces of paper and then we typed it into the computer and saved it under the stupidest places, but it seemed like a good idea to me. This is a problem I had at 144 Vine Street with this tenant Janine or whatever her name was. So I'd save it under Janine's name in there. But then I'm like, ah, two years later, who was that one that brought in the dog that wasn't allowed to have it Lila? Do you remember her name? That's how it's say. So we finally got all these notes put together and realized it's not about the unit. It's not about the tenant. It's about the rule and where does that fall? And then we broke down, well, this is the leasing and this is approving the app and this is signing the lease and this is the rules when they move in. And then this is what you do when they live there and this is what you do when they move out and this is what you do 30 days before they move it. And we had to keep moving stuff around and I put it in a chronological order that made sense in my mind. And then people argued with me and most of the time I overrode them, but sometimes I'm

11:29like, yeah, yeah, you're right. Oh, and how many times do we have to write it out? We had a system that this is what you have to do in the field for maintenance, but at the same time, the office has to do this. And we had all that written into one and then we had to write it twice. And I'm like, no, no, no, these needs separated. What is it that just the office does? Because we used to have one person that would track the maintenance and they got and do the maintenance and then say the maintenance was done. And now you have a girl in your office that assigns all this stuff and then you have Devon watching out and checking up on that above her. And then you don't have one person in the field. You've got like eight groups of people working in the field. And each of them, it might be one person and it might be five or six. So we had to evolve, our systems evolved dramatically over the next 10 or 15 years. They've been pretty steady for the last five. So these are some of the things. Don't try and write 100 page manual when you hire your first employee or contractor.

12:34But write down the rules, what you expect of them, what is the dress code, what time do they show up? Are they only there when they schedule appointments? Are you do you expect them to sit there all day long? Things like that and it can really make your life and there's a lot better. We'll be right back. Have you ever loved one benefacted by inflation? Yes. We have the product for you. Hard assets that hold their value like the real power family, so far, are available at American Gold Exchange. You can visit American Gold Exchange at AMERgold.com or by calling 1-800-61-393-23. Welcome back to the real power family radio show. Before I went to break, Dad was talking about, well, systems, they're important, and why you need to set them up, especially when hiring other people. Dad, you just talked about, you didn't start with the system.

13:34When you started hiring people, did you realize how much more you might have needed a system or what was the state of your system or systems manual when you started hiring people? Well, I hired your brother's godfather, a really good friend of mine, and we're like, well, let's just figure this out. Our system was, we'd talk if he didn't know how to do something he'd call and ask me. Yeah, there was nothing written down. It was just me and him working, and I had totally trained him so we knew how to do things where I wanted, because he didn't know much about maintenance. He actually started working for free, and then he figured out how to get college credit for doing what he was doing. And then once he learned stuff, he was like, I'm bored doing this, don't have me do this, and I'm like, oh, yeah, I should totally pay you for that. So he would work just so I could teach him how to new work with him and teach him how to put in an outlet, change a flapper valve and a toilet. And once you do one or two, you really don't need any more education and that do you

14:35eat them. No, no, it's pretty simple once you do it the first time and see. So we just assigned whatever he had learned how to do to him and he got paid for that. And then he's like, well, I don't know how to do this. Okay, I'll come over and work with you. And I taught him how to do it. And then the next time he could go out and do that. And he ended up really growing and doing well. And then he bought a bunch of his own rental properties and knew how to fix them up. And that's where the real money was for him. So yeah, that's kind of how I started. But then when I realized, now it's wildly different. Now I'm never in the field. If something needs checked on, I generally send somebody else that works for me to check on the new guy. So it's wildly different. Yeah, that makes sense. And that's one of the things we do in the office too is the people that are really good at it that are used to the system. Having them check and make sure, yeah, did that person enter things into the system correctly. And if there's a problem, they tell me so we can make sure that if it's a system problem,

15:36we make the adjustment. Yes. And you have to make it very easy. And I mean, we keep saying system, like it's some big thing. Sure, you can go out and pay somebody a fortune to make something for you. A lot of people are using AI. They say, these are the things I want done. Come up, you know, right, a basic set of rules or a system or an SOP standard operating procedure for me. And then you go through and edit it. And it's kind of scary how good that AI could be. It's something like that to just do boring, repeatable, repetitious tasks. And some of the stuff it'll put in will be absolutely not for you. And I've never done this, but I used a, we had AI for some of our radios. And it was scary how it picked out the most important points and put them all on them. Like, whoa, that was totally taken out of context. That needs to lead him. Oh, yeah. When we use that for what was it? Show notes, not to come up with what we were talking about just for like show notes or a summary of the show.

16:36Yeah. Apparently listen to us. And then as soon as whatever recording device and I know Zoom has a new AI that I refuse to turn on, I bet it would do the same thing for us. So when we were using some other program, it automatically did that. And if you look back for a few months, we had a lot better video, but we don't care because we're almost all radio. And we had incredibly long show notes that most people don't read anyway. So who cares? Yeah. But it was all designed. Oh, and I noticed when we listen, there's somebody's using some AI somewhere. It's not us because when I listen to your teenager takeovers, it literally pops up with what you're talking about in that segment on my radio. Yeah, that's an Apple thing. If you listen because we use Apple podcasts, it'll summarize. I don't know if that's whoever uploads this show because we don't do that. Brushwood does that or if it's some AI that Apple uses, but yeah, it'll like bring up

17:37what you're talking about, like subsections on the show. So these are some ways to make it easier for you to hire people. Because if you don't hire people, you will work until you're dead. Okay. What's the saying that if you don't learn, if you do not figure out how to make money while you sleep, you will work until you die is the quote from Warren Buffett. Yeah. Well, Eric says, if you start your own business and don't learn how to hire people, you will work until you're dead. And it might be at like 45 or 50 years old instead of 80 or 90. You've got to find a way to free up your time because if you don't pass out from exhausting, your wife just might kill you or divorce you. Yeah. Same thing. It'll death do it. Yeah. No, these are some of my ideas is to how to get out there and how important it is. I'm setting up a mastermind and we've got a bunch of high level people coming.

18:41It's going to be in January. If somebody is interested, email us. Don't text me because you will not be considered if you email info at realpowerfamily.com. It'll be a few thousand dollars. It's, but that'll cover where we stay. It'll be somewhere between the East Coast, Florida, maybe the Smoky Mountains, the Antennas Sea, somewhere in there. Maybe we'll go up to Boston. I don't know. Somewhere cool and off season. So it's fairly inexpensive. My goal is to not to go out and have fun. My goal is simply to get no more than six to 10 families together. And one price covers everybody you can fit in your bedroom. Don't care if you bring three kids or come alone. Don't care if it's just you and your wife or whatever. But you get one bedroom. And if we have an overflow bedroom for kids, we'll have you toss them in one for the boys and one for the girls.

19:43If they're teenagers, they can work out on their own, sleeping on couches or whatever. They won't die. But yeah, we've done a handful of these. There's probably something on the website about it. But we got to see what it's going to cost and where we decide to go. If anybody's interested in that, I'm not asking for a commitment or any money. Let me know. I need to know how big of a house we need to rent because I really don't like to do this in a hotel room. I want it all of us in the same house. And so far, we've got a Bitcoin guy. We got a couple of guys really good at business. We got a video guy and obviously real estate people. And you know, we talk about everything. So there will be experts there for multiple different things. If you want to come in, if you have anything to contribute great and if not, just ask good questions. And I'm sure these people will keep talking. All right. Let's. If you are asking my group, that is the mastermind group.

20:43If you were interested in that, like I said, in the middle of January, after I get stuff prepared for my accountant, and while I'm still waiting on the rest of my 1098s and 1099s and all that stuff to come in, before I can actually give all of the information in the accountant, I have nothing to do for a week or so in January. So that's always a good time to do one of these. If you're interested, let us know as soon as you can, like I said, not a commitment, but I need to know, yeah, I'm kind of interested in this because we've already got about four families that are very as long as it doesn't cross over something else on their schedule. They'll be there. And again, email info at realpowerfamily.com if you're interested. And on that note, we will come back right after this break. I'm Eric from the Real Power Family Radio show on the Brushwood Media Network. I'm here with my lovely wife, Alilah, who is known as the mom of the power family. And I got to tell you, just 25 years ago, we were sleeping on a mattress on a warehouse floor.

21:49Then we learned to buy more hard assets faster, like real power family silver rounds from American Gold Exchange. If you want to get your own real power family silver rounds, you can call American Gold Exchange at 1-800-61-3-9323 or you can visit their website at AMER-Gold.com. Welcome back to the Real Power Family Radio show. We're dead. You were just talking about an incredible opportunity for people to learn more and get started. And what else I know at the beginning of this show, we were going to be talking about buying houses and how that's so much easier or how that's technically easier or cheaper nowadays. Yeah, I didn't know I was going to open that up to the public, but you would think would be overrun. Now, very, very few people are going to show interest in this. And when I say it'll be thousands, I really mean thousands, like under 5,000, maybe two or three, it's going to cost two just to get the room,

22:58especially if we provide food or something. I don't know. Sometimes we do that. Sometimes we don't. Normally we just all go out and everybody, every family picks up dinner one night while we're there and we call it close enough to even. But yeah, make sure you email in if you're interested in that. I didn't even know I was going to open it up to the public, but why not? If there's a couple of people out there and they said interesting, we'll bring them along and see if we can't grow their business dramatically. Mine as well. And once you grow your business dramatically, then you finally start getting some more income and having more time to spend it. So of course you take more vacations and do more masterminds and maybe buy an airplane or three, whatever it is that you do. But then you got to realize you have to store your wealth. And I honestly have no idea why people say money. I mean, I'm buying a watch that it kind of makes me want to cry at cost so much, but I've always wanted a brightling.

24:04And they just don't I would go on by a brand new one tomorrow. I would have bought it last week, but they don't make exactly what I want. So I have three jewelers looking at it. One wants me to come in. They've sold me enough jewelry or yeah, I guess they sold it to me for Lila. They're the one that made your real power family necklace. So they know if I say I'm going to buy you know a new Rolex or brightlea or something, I'm going to buy it. And they're out looking because they don't make them new. We have to find a used one to get the yellow gold because I hate the new rose gold. I only want yellow gold. So it's like I might have to buy a Rolex, but I prefer the brightling and see if you can find this for me. But I would rather have my money sitting there than in a bank. And is that an investment Lila buying a Rolex? Not necessarily. No, it just makes me happy. But honestly, if I buy a used one and you know, it's 30, 40, 50% off of what it was brand new, I could probably sell it for close to the same amount. I'm not it's not a total waste.

25:06It's not going to lose half its value and the next 10 years. In fact, 10 years from now, it's likely to be worth more in dollars than I pay for it today. Yeah. If you're buying whatever the metals in there might hold their value, but it's not, it's not like real estate or boi in per se. And it's something that it's certainly not a good store of money. Once you turn something into jewelry, you have to have a dramatic increase in value for it to ever be worth what you paid for the jewelry. Most jewelry is worth the junk melt value is literally less worth worth less per ounce. That's why this one, it's 22 carat. The chains that I bought you boys when you were quite little and gold was only a thousand dollars an ounce. But I figured we'll buy this now and look at it. That chain, I think is 1.6 ounces of pure gold. So what was like $1,600, but I paid you I'm probably $2,500 to have them turn it into a nice necklace.

26:13Now just the melt value is worth six or 7,000. Now it's tripled in value. So what do you care about that? Well, that's why I don't understand why people save money. And I tell you, I'm telling people over and over that dollar bills have lost 40% of the purchasing power in the last six years alone. Just since Trump started the CARES Act and Biden pushed it through and Biden saw all the inflation that both Biden and Trump caused. And now Trump isn't doing anything to slow down the increase in the monetary supply and Worsh. Just increased like just a few weeks or is it six days, maybe like six days before the election. So we're like six weeks and six days before the election. If that's accurate, he raised the rates, which normally doesn't happen. And I have an incredible quote from the FOMC chairman, Kevin Worsh.

27:20Let's see, he says he's not looking at any individual data point. Because quote, data points are noisy, continuing the quote. Data point dependence is a dangerous preoccupation and is not something that concerns me. He says he's looking at trends. Well, what have I always done? I said, I don't care what they say. You can lie. And these are my words, not his. You can lie about any data point. And we've talked about what do I call the consumer price index, Devon? The CP lie instead of the CPI because it's frequently being changed just to fit whatever they wanted to mean. And then you can get the CP, E and the core CP, they got all these different abbreviations. And whatever one looks better that day is the one they announce, whatever they feel like. It's like the job numbers. They were trying to show global warming and how awful it is.

28:24So somebody found a picture and it was exactly the same day from 20 years ago. And all the temperatures all across the nation were on there. And it's all like greens and blues. And then they showed the same thing from last week. And it showed all of the same temperatures. And actually most of the tension pictures were a couple of degrees cooler than the same day 20 years ago. But they made the map all red and orange and talked about how awful this global warming is. And we're all going to die. And it was just interesting how the temperatures were around in there. They were just about the same. In fact, many of them were actually lower, but the colors they put behind it. And the words that they used in the drama they used and presenting the weather to you was totally different. And it made it seem like it was so much hotter. They can do the same thing with all of the government numbers.

29:27And really all the numbers we use, they come out of the CBO or some government agency. If Kevin is actually going to, we don't need, we shouldn't have the Federal Reserve at all. But being that it doesn't look like Ron Paul is going to manage to end the Fed just yet. This could be the closest thing we have to good. Now, I don't know. I don't trust Kevin Warschen anymore. And I trusted any of the other Federal Reserve chairmen's and each of them has done something that more or less impressed me at the beginning. Let's hope he keeps going down this path because it's wildly different. And somehow he got a 12 to zero vote to raise interest rates. So however he described it behind closed doors, they must have bought in because I really didn't think. Before we used to always get perfect, near 12 zero votes. And then suddenly we didn't anymore, which is the way I believe it should be.

30:27By the way, I think there should always be something. But to have this vote, which should have been a little bit more difficult to decide, I thought it was clear. They need to raise rates. But there are many people, the data, if you look at individual data points, they can lie. That jobs number looks good, but it only looks good because the lack of participation made it go up. And this looks good, but it only looks good because we stripped out energy. And I think they realized that with diesel, which right down the street was 710 when I came home last night, that's going to trickle through everything that everybody buys that is shipped anywhere. You're going to feel $7.8 diesel prices there. And I think they know that that might be I have no idea what went on behind closed doors or I don't want to make an opinion of their thoughts. But there's a good chance they know that diesel no matter how much we massage and lie about these numbers and change things.

31:33Prices, the consumer price is going to be higher. We better get a jump on it. And that could be why there was zero disagreement. Again, just my wild guess, not a fact, but the fact is there was zero disagreement for some reason. And they raised interest rates a quarter point for whatever reason, which I happen to think was the right call. And I also don't think any human being is smart enough to make the right call. So we'll see what happens in the market. But at least now he's not trying to lead the market. And what would happen is the Fed would speak. They'd focus on every single word. It'd be like he said this word 35 times and this one only 23 times. Therefore, that's more likely that it's going to go up next time. The wild things. And maybe it was Bernacchi that said, and if you think you understand what I just said, then you clearly don't. Didn't didn't someone do that whole like counting whatever words that Trump said.

32:35Didn't they do someone do that for Trump? Somebody always does that. Ethan has fair. All right. Well, we're doing for a break. So how about we come back to this right after this break? In Ohio, property taxes have skyrocketed with recent budgets ignoring the crisis, forcing families and seniors out of their cherished homes. It's unfair. No one should be evicted from their lifelong investment. Support our constitutional amendment abolishing property taxes, making school funding fair and constitutional for all districts via state dollars, fire and police stay fully funded. We'll shift to consumption and income taxes with smart legislation ensuring gradual phases and no burdens on low income families. Best of all, it ends corrupt developer giveaways politicians fear losing. It's time to force politicians to prioritize the people of Ohio. You should own your home free and clear. Sign the petition today for the 2026 ballot.

33:38Go to citizensforpropertytextreform.org to learn more and join the site. Welcome back to the real power family radio show. We were just talking about Kevin Worgsh and the Fed and how they raised the interest rate with a 12 to 0 vote, which was semi unexpected. And Eric, do you want to talk a little bit more about the what's going on with inflation and how that's affecting people? Yeah, so let's talk about the numbers that Worgsh says. He's not going to get fixated on because data point dependence is a dangerous preoccupation. It's quote noisy. Any individual data point? Well, just like a weaker two ago, the inflation number they came out with was 3.4%. And I'm sure we talked about that. But energy's up 27% year over year. We know we postponed the show for a little bit this morning.

34:38We didn't record as early as normal because I was waiting for this massive propane truck to fill up my thousand gallon propane tank and it was really loud and annoying. And I didn't want that to overcome our audio. So if you look at it, if you live in Ohio, you're certainly buying fuel oil or propane or natural gas or a lot of wood and coal, which we do that too. But the 27% year over year increase, you're going to feel that. And if you're in Florida, you'll be like, well, I don't need to worry about that so much. You know, we have heaters down here, but don't use them like you guys do. Yeah, but you don't grow any food. How many miles does the food, the wheat they grow in Kansas, the corn they grow in Ohio, the potatoes from Idaho? How many miles does that have to travel? And how many gallons of diesel does it burn to get that food to Miami? And if you're like, oh, we'll fly it in.

35:38Okay, you're still burning diesel fuels just called Jett A. When you throw it on your thing, you still have to spend money to get it. Or you still have to expend energy in the form of basically diesel. Right. And if that's up 27%, how much do you think, how likely do you think it is that we will actually maintain below three and a half percent consumer price inflation as this works it way through the market? It's just not going to happen. Which brings me back to where I started. I just don't understand why people save money. Even buying this ridiculous watch, I didn't have any money saved up. I just realized, oh, well, there's money in the stock market. And I don't like owning these stock. I sold it and it's just sitting there not doing anything. So I'm more than enough money to pull out of there because I think that, you know, this bubble pushed on by AI is going to affect a lot of the good companies that I would want to hold stock in.

36:38So while I still am holding some stocks, I've said over and over, it's like 1% of my net worth. It is not a significant amount. And even in that 1% not all of it is actually in the market. A lot of it is sitting in cash waiting for literally anything to change in the market. So I don't think it's grossly overvalued. And then I can't go in and buy the bargains. But I don't want to let too much cash sit there. So I keep very little cash sitting in reserve in a bank account. I mean, I'm getting 3.3%. If you believe the 3.4% inflation, put your money in battle bank and you're only losing 0.1% in here. Now, if I am right, if we have a big crash, it's going to be nothing to overcome five years of losing. You've lost a half a percent of purchasing power in five years. If you're only getting 0.1% less than interest. But if you have it sitting there not getting any interest, you're getting less than 1% from most

37:44of these other banks, you're really losing almost 3.5% a year. And if you look at it, it's almost always double that. So we're pushing 7%. That means it's like 12 years to cut your purchasing power in half. All of this sounds theoretical. It's just numbers. People don't always want to think about it. And if I tell you 12 years from now, you have a hundred grand in the bank. You'll only be able to buy $50,000 for the stuff. Like, no, I'll have 105 grand in the bank. Okay, but the 105 grand will only buy 50% of the stuff. Let me put it to you this way. Six years ago, you could have bought a hundred thousand dollars with the things. If you had a hundred grand six years ago. And if you put that hundred grand in the bank today, you could only buy 60,000 dollars for the things. And they don't understand that. They're like, no, no, no. I can't. I still have 103,000 because of interest. I can buy a hundred. But you can't get as many things and stuff.

38:47So let's twist this around. Quit trying to think in the term of dollars. Think of it as look at Golden Silver. It's prices, you know, stable in dollars that might go up. But the value of the dollar is worth less. So you can still buy the same suit, the same whatever for an ounce of gold. But it costs whatever percent more to buy that one ounce of gold. So yes, you might have the number in your bank account in dollars might be higher. Those dollars you can only buy 50% as much. Say you can buy a hundred eggs before. Now you can only buy 60 eggs with what you have in your bank. Even though that number might have gone up, you can't buy as much. That's the simple thing to explain it. Another way to say it is, wow, it just cost me over a hundred dollars to fill up my gas tank

39:47in my pickup truck. It was a hundred dollars and 70 cents to fill up the pickup truck with gas and the cheap stuff, 87 or whatever it is. Just not that long ago, a year ago, we were filling it for what, 60 bucks. So if you look at it, they say energy's up 27% according to the congressional budget office, I believe is where I got the number. But it really is up a lot more than that because it went from 60 to a hundred just to fill up my gas tank, which I need to do every week or two and that truck. And I know most people that are driving, they're probably dry. I have multiple vehicles. That's my only fill it up every other week. But I fill some vehicle every week and I figured that's about average. Most people are filling their gas tank about once a week. So look at the price and multiply that by four or four and a half. For how many weeks there are in the month, that's how much. It's not a $40 increase, it's a $40 increase a week for me.

40:52So now you're talking about $160 more, $175 more by the end of the month. That is going to cost me just to fill up my gas tank so I can drive to work. If I were the typical person that had a job. So why do we save money? What if we saved, I just went out and bought an extra 150 gallon fuel tank. So 100 gallon diesel. I've got a 50 gallon of gasoline. And while we must have another 50 gallons in the cans sitting around the barn, and another 10 gallons of diesel. And then we've got 1,500 gallon propane tank at home, which will make it through two winners if we use it selectively. But very, very comfortably makes it through a winner and still has 40% of our volume left. Even the coldest of winners, not even building that many fires.

41:56So these are the things you can store money in hydrocarbons, especially if you have a fuel oil tank go out and pay the money to buy an extra large tank and fill it up because it's going to get a lot more expensive over the winter I bet. And if I'm wrong, at least you don't have to worry about and filling it up and driving down your snowy and icy driveway if you have a long drive like ours. Because they might not be able to get back in and fill it, right Ethan? Yeah, yeah, I had that was fun when I had them fill it at the farm. I had to it was a lot of snow. So I started with the four-wheeler plow, but that wasn't enough. So I was going to use the big thing on the tractor, but the tractor wouldn't start. So I had to pull my truck out to jump the tractor. But my truck doesn't have four-wheel drive. So I needed to very solely use the four-wheeler to scrape off the top five times, got my truck stuck, dug that out with a shovel, then moved it forward, jump the tractor. Then I could finally plow just so the truck could get in. That's a lot.

42:56Yeah, because you have a 250 gallon tank at your house and I have 1500 gallons here. Yeah, well no one lives there yet. So it's not as important. We just try and keep it up to 40 degrees, but by the time you move in, you might want a dramatic thing, crease that, right? Yeah. These are the things you could do. But then you're like, well, I don't heed, you know, I have natural gas. Most people are just hooked up to the natural gas or maybe they're all electric. And you can't really store the electricity. Sure, you can buy some Tesla batteries or something, but that's not realistic. So where can they store money? Did we take our last break? No, we need one more break yet. Well, I'll tell you where we stored money way back and how it is actually helping us today. We'll be right back. Every parent wants their kids to be successful. And today's world, getting them the right knowledge to do this can be a challenge. My husband and I decided to homeschool our kids and give them a financial and real-world education rather than making them memorize things they would probably never use.

43:58Our results are kids who became financially free before they could drive with no money or credit from us. Now at 16 and 13, they co-host our real-power family radio show and Devon is in his third year of college. How can you give your kids a head start like this? Check out our book Family Success Triangle which outlines the lessons we taught our kids. We want you to achieve amazing results at any age. Get your copy of Family Success Triangle on Amazon today. And be sure to subscribe to our YouTube channel at Real Power Family. And listen to the Real Power Family Radio Show Monday through Friday at 7 a.m. on the Brushwood Media Network. Welcome back to the Real Power Family Radio show. And now it's going to tell us where we're storing money today or where we were before. Well that's muted. Thanks. You should reiterate why this is important, guys, that we've lost 40% of the purchasing power in six years. So unless you got a 40% raise in the last six years, you can't buy as

45:01much stuff with your paycheck as you could in 2020. And unless you got a 40% return over a six year period, so you know, what's that 7 or 8% compounding? Unless you had an investment that compounded it more than 7 or 8% and didn't spend you any of your savings, then you couldn't buy as much stuff. But if you would have just thrown it into gold or silver, you could have a massive stack of Real Power Family Silver rounds. And you could buy more groceries than you did six years ago. And let's look back. Isn't it the millennials that are all over social media saying how Gen X ruined the world and you can't afford anything because of us? One, it was our parents that screwed up for both of us and their parents. But it really goes back to whatever generation was alive in the 19 really started with FDR in the 30s, 40s, 50s, 60s, 70s with Johnson, Obamacare,

46:08an O8-ish. And then the Dodd Frank Act making it harder and harder to finance people. They're taking away all this stuff to make it more difficult. It's making it more difficult for the average Joe. And it's getting so bad and property taxes are going up so much. And so make sure you center petition if you're in Ohio, axohtax.com, axohtax.com to stop property taxes. But do you know that even the almash are moving out? What is that? Lane Caster County is kind of the home. And they're spread out of many states. They're spreading more. Their population is growing so much when so many other populations in the US are shrinking. They're actually leaving because in their home county or painful think of almash. Not you guys because we have them all around us, right? Yeah. But that's in Pennsylvania, right, Lila? Correct. They're moving into Northern Maryland. They're

47:11moving to Indiana, Illinois, Ohio and all these different places because farmland, they figured out you really can't make more than 10,000 an acre. If you pay more than 10,000 acre, you'll never be able to sustain as a farmer. So then they don't try and farm it anymore and they're farmland as we're 27,000. So they sell the $27,000 an acre farmland. And then they move multiple states away, which is even that's hard for anybody. Can you imagine doing it in a horse and buggy? That'd be miserable. Yeah. It's not like you're running over to check out the place before you buy it. But even more than that, they they travel in groups. They're a community. So when one person moves, that means everybody's moving. You get large groups moving, not just one person. So even the almash are moving to lower texture, as well as property values are lower because they frequently have six to 10 children. So figure three to five boys. And then the girls are going to

48:12get married and moving with their husbands. But the boys, you always want to split up your land and give it to them. Well, if you have a hundred acre farm in one generation, you're down to 20 acres a piece. And you try and break that up five times, you got four acres a piece. What are you going to do with that? So you got to sell it. And now they're getting to these places like Missouri as, you know, a big influx in New York state. Many are moving in because they're buying farmland at like 5,000 an acre where they can actually make it. So the dollar value of all this land has gone up. And we've talked about it and they're experiencing wildly different culture. And they're seeing the same thing as us. But you know what? If you were almash, if you were atheist or Catholic or Zionist, everything from A to Z and everything in between, you could have bought gold. And if we look back, I'm looking at the average house price was wow, right around 20 under 25,000 dollars back in 1965.

49:20I think that's my grandparents. They lived in the same house their whole life until they needed serious medical care. Then we moved them into one right beside our couple of minutes from my mom. But they were there for 30, 40, 50 years. It was a long front before my mom was born until they were old enough to need home health care. And I think they paid right around 30,000 dollars for a house and really good shape in a nice area. And now houses, they peaked up over 550,000. And right now, they're sitting really close to 500,000. That is the United States average. If you look in UK, it's 282,000. We're going to round up to 283,000 pounds. And they started, that's so low, I can't even read the graph. Looking at these, so the prices, not just here, but the UK as well. We'll call that Europe. They've risen. Now let's look at that from 1964 when the price was right around 25,000,

50:28if you bought it in ounces of gold, it would be 500, let's see, trace these lines, about 550 ounces of gold. Do you know what the peak up through 2005 before it started crashing? Do you know how many ounces of gold it would have cost? We would have went from 550 up to about 800, Devon. Okay. So there was some fluctuation, but then it crashed down to 150. And you know where it's sitting now? Somewhere on 225. So that's significantly easier than... So buying a house with ounces of gold in 1964 would have been 550 ounces. It held at 400 ounces throughout all of the 90s up until the .com boom. And stuff started getting more with that run up there. And it went up and crashed, but then it came back and leveled off around 300. We are historically very low for how much it

51:32cost to buy a house and gold. And we haven't even had another major run up. And I'm talking historically back through your grandparents lifetime, right? Or at least your parents lifetime, depending on how old you are, back to the mid 60s. And you can't really go much before that because it was illegal for America. That's ridiculous that FDR stole the gold. And we've have... There's a good letters out there. We had a whole show about why that will not happen again. It would be very, very unlikely for them to try and do that again. But so that's just American dollars. We're totally different than the rest of the world, right? Well, but it even goes beyond just real estate because if you look at priced in gold, what electric prices are, if you look in in in ounces of gold, what food has been, literally the graphs look the same as the housing. It's actually taking less gold now than it did previously. It's just the dollar that's changed. Remember when we got started, we actually tried to

52:36tell people what to budget. And it was $75 for gas and electric. And like it'll be a little bit more in the winter, but it'll be cheaper in the summer. And you know, it's 75 to 100. If you've got a little bit bigger place, the 75 to 100 should cover your bills. Now our electric bill alone is what 200 bucks. Yes. That was for gas and electric combined, Ethan. 25 years ago. Wow. Wow. But I was getting a haircut for five bucks. We pay more for that at the camp or are barely there. Just electric. If you look at the price of the UK house, they have this absolute horrible housing crisis, right? It's 155 ounces of gold to buy a house in the UK, which is cheaper than the US. And you know what it was back in Oh, there's graph goes back to 1953 almost exactly the same.

53:37It's within a couple ounces of gold to buy a house. Gold holds its value. I keep saying, I don't know why anybody. Yes, store the dollar bills you need to pay for your stuff over the next few couple of months. Maybe if you need to have a year of reserve, great. I don't need that. I only need a few weeks of reserve to make me happy. All the rest is stored in gold and silver. Like the real power family silver around from American gold exchange. And when I got a whole life insurance policy, my dad paid into it until I turned 18 and he gave it to me. And within a couple of years, I realized, I don't know what I'm doing here, but I converted it to cash. And then I took that cash and I bought gold, silver and platinum. I had just over $14,000. And I bought all the gold and silver I could and two ounces of platinum, which were well under $1,000, I think. I'm not buying platinum anymore. I haven't. I've never bought anything after those last two, but I was new

54:37and didn't understand. And now I do. And I've been loading up on the gold and silver whenever I have money that I want to sit there for a long time, I put it in that. I'm not just going to go and put it there and then sell it a month later. It's too much hassle. But if I wanted to sit there for years, I certainly store money and gold and silver. And that means it's cheaper for me to buy my next house than it was even back, you know, the turn of the century, even back when my grandparents were buying a house, it's cheaper for me to buy it and ounces of gold. And that $14,000 is worth a whole lot more. I know I put like 10 grand for my mom and your mom at more or less the same time within a year of each other more than a decade ago. And I just showed my I printed out I go, hey, I found the receipt. And I know you got all the gold and silver if you still haven't. You know, that's worth over $50,000 today. And you bought it from 9,500. So they're happy that the dollar figure went up. But really what you can count on is that paid for

55:44your house. If you ever needed to sell your house and get a different one, which I don't think my mom will, but your mom won't move back over here. Maybe storing that wealth, not in the stock market. And if you look at silver, I can show you the same thing, but right at time, it's a lot more volatile. There are times that's really good and really bad, which is why I look at the gold silver ratio. But for long term decade, long, multi decade long storage, I put my money on gold. And if I'm buying something, you know, for a year to five or 10 years or maybe I want to get a little bit more upside, or I just think it's cool to buy my own silver rounds, then I buy silver. But other than that for the very, very long term, I don't care what the price does. I just want to store value there. And it is proven over the last 25 years, which is half of my life. And as long as I have understood investing in any way, it has been a way, way, way better place to store money

56:46than in dollars. And that allows me to buy real estate. I also store a lot in real estate way too much at the beginning. So yeah, basically it comes down to store the value, create, grow your start a business, be self employed, work like a dog, then hire people, write systems. So you don't have to work 80 to 100 hours a week or 60 to 80 or wherever you are today. Hire people, trust them. They'll make mistakes. It's okay. Write better systems, train them better. The people are good enough. It's your training and systems that aren't. It is always your fault because of it were their fault. You would have no control over making it better. Right, Lila? Absolutely. And I learned that one the hard way. Always take responsibility for everything. And then when you start creating more value, then you consume, store it in hard assets like gold, silver, Bitcoin, and real estate. And that can really like all these things you see on social media just flat out aren't true.

57:51It's only true when you look at the rubber remember measuring stick called the dollar. But when you compare it to something solid that doesn't move, grow or shrink like gold, stuff's actually cheaper and easier to buy than it was for my me when I was young for my parents or for my grandparents. I hope that makes your world better. Lila wrap us up. This is why we tell you to buy more hard assets faster. Devon. Dollars don't matter. Value matters. Find something that holds its value. Ethan? Always take responsibility. If your crew is messing up, figure out a better way to train them or write what you need to change in your system. Are you losing purchasing power? Store your value in hard assets like gold or silver. And when you have them seen them out of that, you can start storing in other types of hard assets like Swiss watches and airplanes. At least that's the story I'm telling my wife. Hey, go out. Have fun with your family and make the world a better place.

58:54We'll be back next week. We hope you enjoyed the real power family radio show brought to you by Family Success Triangle. We want you and your family to be financially free so you can go where you want, when you want, with whomever you want. Learn how we can help you live the life you've always dreamed of at realpowerfamily.com. To hear more, subscribe to Real Power Family on YouTube. Until next time, go out and make the world a better place.