This is an I Heart Podcast. Guaranteed Human. Run a business and not thinking about podcasting? Think again, more Americans listen to podcasts than add supported streaming music from Spotify and Pandora. And as the number one podcaster, I Heart's twice as large as the next two combined, learn how podcasting can help your business. Call 844-844-I Heart. - Welcome to my show. I'm Richa McDonald, the host of money making conversations masterclass. When we encourage people to stop reading other people's success stories and start planning your own. Now you don't want to miss an episode. So please take a moment right now to follow or subscribe to a money making conversation masterclass. It's free. You can follow me on I Heart Radio app, Spotify, Apple Podcast, or wherever you listen to your podcast. New money making conversation masterclass episodes drop daily. I want to keep you on alert because my guests provide tips on how you can uplift your community, improve your financial planning, motivation, or advice on how to be a successful entrepreneur. Now let's get this podcast started. My guests is a personal financial coach of wealth coaching stratosphere. They provide expert financial coaching. They have to you take control of your money and build a strong foundation for your future. Whether you need to break free from debt, create a financial game plan, a develop better money habits. We are here to support you. That's their motto. Please work in the money making conversations masterclass brother Majahit Mohamed. How you doing brother Majahit? - I'm doing great by God's grace. And I'm happy to be here with you brother, Sinhan. - Okay, now you basically used to Texas and I'm born and raised in youth Texas. So when I saw your information come to my guests, be a guest portal, I jumped on it immediately. Tell me what you're doing down in youth to Texas, brother Majahit. - Well, we are committed to assisting people in a personal financial space. My expertise is both a real estate, personal finance, and insurance as well. So we're helping young families or people in general, you know, to get off to a fair start and not duplicate those mistakes that were originated by myself coming up and trying to develop my personal financial portfolio. Well, I always say you learn from your mistakes. You put it out there first brother, Majahit. What was some of the mistakes you made that you don't want us to make? Give us a couple of them. Well, let me start from the beginning. And I think as I grew up, the story was told to me, my dad went to the military and he was sending home checks to help take care of the family. At that time, you know, they were extremely poor. So it was a necessity. And he's sending checks every month, every pay period. When he got out of the military, unbeknownst to him, my grandmother, his mother never cashed any of those checks. So she gave the money back to him and he used that to buy his first duplex and then later foundation for his financial future. In mimicking fashion, I joined the military, but I didn't need to send checks. We were in a different time. Although I'm sure he would have taken my checks, but you know, I was saving the money. And when I came home from the military, my father helped me find my first duplex. And it was from that duplex that was the launching pad. I got married a few years later. I identified this thing called equity. I pulled out over $20,000 in equity and I immediately started. They called it the Burr technique. Back then, there was no bird. There was no YouTube and everything like that. But we essentially, I was buying real estate, renovating it, renting it out, refining it, refinancing it, renting it out that whole Burr method. So we did that and I massed the million dollar portfolio. I thought I had enough to leave my W2 job. I left the W2 job. Three months later, Hurricane Katrina hit the New Orleans area. And at that time, a nun of my portfolio, a year was there. A year was there. Just remind everybody that the year Hurricane Katrina, 2005, 2005. Yes, sir. At that time, I wasn't covered. It just, it wasn't required. A devastation like that never happened before. So there was no flood insurance. So we literally had these decimated properties with no money to repair it. And I remember being on a phone with a, one of the, I was in the middle of a renovation at that time. And the lender was chiding me. He was like, look, I need you to get back on it and rebuild this property and rent it out. I'm like, I don't think you understand. It's not my property that there's no, there's no houses for blocks and blocks. The whole community was gone. So that level of devastation was really unfathomable to all parties involved. So after suffering that, went to Houston to try to regroup. And I said, I'm gonna come back and recommit to build in my portfolio. And then in 2008, lo and behold, we know what happened with the real estate market. And that was kind of like the nail that kind of sealed the coffin. So from there, I kind of hit myself over the head with that invisible hammer. I was blaming myself, thinking I wasn't what I thought I was. And for several years, I just went on and thought I was a failure as a relation to financial space. But there was a unique circumstance that turned things around. You know, I got a phone call from my wife. We had one car at the time and I was at work. And she said, she said, Betty turned off the water. So I moved some things around. I said, look, go pay this water bill. So she literally walked to the utility company to pay that water bill before the children could come back home and realize what had happened. And I remember looking my wife in the face and I said, "Bec, this next chapter of our life, I promise you, we gonna have a lot of problems, but it won't be a financial one." And so I committed myself to turning our situation around. And that was the impetus to where I knew I needed to do something different. And that's really, really the motivator for helping other families to not experience that experience that I felt in that moment. What year was that, brother Majahid? So he had 2008 was the crash. - I've been at the Collapse of the Conference of the Home Mortgage, that was Collapse of the House of the Contriner. 2008 Collapse of the Home Mortgage, and then you had at least seven years that I was just doing ins and out I think. I drove, yeah, I bought drove with this. So yeah, so what's seven on top of 2008, 2015? - Okay. - So yeah, we're in that area at this point. - Okay, cool. So now the next 10 years, you got a plan in place. - Absolutely. - Okay. And what was that plan? And why did you feel the need to the, 'cause you already messed up into Orleans, didn't have, did properties got washed away by Mother Nature in Hurricane Katrina? Why would you go back in the real estate after that level of devastation, brother Majahid? - Well, here's what I learned. And I think a lot of times what we do in our community, we try to lead with business, looking for business to solve our personal financial situation. And the light bulb that came up with me is that if you solve your personal financial situation, you can grow organically and come to the market in a different way. So I prefer to come to the market as a well capitalized investor, as opposed to an under capitalized investor. And when you prioritize your personal finance, act your wage and grow according to stage by stage, you'll eventually reach a point to where you can come to the market and be more productive, because the biggest lesson I learned was that leverage without liquidity is to piticy. And so at that time, I was real estate rich but cash poor. And so I, coming around a second time, I over-infacizing, controlling my personal financial situation so that I can approach the market from a totally different perspective. - So basically maintaining control with a plan. - Absolutely. - So most people get out there, and I would tell you, when I first opened my first business, I just had a dream. I didn't have a plan. I didn't know the severity of what taxes were. I didn't know understanding my employees, work from his conferences, there need to be a plight, work from the conversation, liability, all E and O if you're into advertisement, all those things on top, on top to stay in business legitimately. That's what you learn in New Orleans. - That's right. - You were in business, but you were not in business because you got taken away because you didn't have all the necessary safeguards. - Absolutely. - In place. Now, we're 2015, you contact me, say, "Resha, I won't tell everybody about me. I'm a personal finance coach. My business is wealth coaching stratosphere. What is wealth coaching stratosphere?" - So the term stratosphere is pretty much a metaphor. And what we've done is we've identified five areas of financial development. And the lowest being financial failure, that's when you have more money than month, right? The least desirable stratosphere you wanna be in, but the next is financial health. That's where most of us find ourselves, paycheck to paycheck, we're able to meet those obligations. And then the next stratosphere is financial fluency. That's what things get better when you have more money than month. And then you graduate to financial wealth. And the difference between wealth and fluency is the accumulation of income producing assets. And so finally, you grow into financial independence where your money is making money. So what each one of those stratosphere is a diameter of thought that you're turning this to a contract. - How much stratosphere is it? - Three or four. - It should be five. - It's five stratosphere. Repeat it again. - Financial failure. - Okay. - Financial health.
financial fluency, financial wealth, and financial independence. There you go. Yes, sir, I missed that count. Yeah, and then it started financial failure, because that's where a lot of people are. I've been there, you know, the reality. That's where a lot of people get to the next step is homeless. You know, pride comes into play. You don't have a plan to get out of that spiral. Why do the average person live in that financial failure status or find themselves descending into that financial failure status? Hmm. I think some of the major contributors is self-esteem, certainly. But then some of the more practical things or problems is that we take advice from other poor people. And that's the biggest mistake you can make in financial failure. A lot of times people that have jobs at, I don't want to name one of the low income places just to be derogatory, but they got those jobs from friends that got them in there. And so when you're not, when you're not where you are, you have to do what you haven't been doing. And so taking advice for people that are in different stratosphere as a different spaces is the biggest way you can gain that quantum leap into your next stratosphere. Let me answer this. Let's talk about personal financial philosophy, your personal financial philosophy. You gave us five points, but I'm just a guy walking into your office, brotherhood, but you're a heap. And I don't know, man, I'm frustrated. I want to, I see people like that making money, but I'm not making the money. I'm just an average guy working a 40 hour week job. Can you help me? Yes, infatically, yes. The first step is understanding that it's a process and not a product. You can't come to anyone to buy something to a milli-rager situation. It's a process. And you got to be committed to the process. And for a lot of people, it begins by just looking at your situation. You'd be surprised the people that just refuse to look at where they stand. So you have to look at it and receive some information that's objective to point you in the right direction. And once you take a look, nine times out of 10, it's not as bad as you think it is. What's the puzzle? What's the other thing we sit there, brother? Okay. Because I'm telling you, I've had a headache on my side of the table. Because it looked pretty bad. What I think that what you're saying is don't allow the moment to overwhelm you. Infatically. Infatically. That's where I said, take that deep breath. Absolutely. And also, I think a key for me is looking around and surrounding and see who's there to. Not so much give you money, but that can support you that you can talk to. Because a lot of people fall victim to a lot of their calamity because they don't have anybody to talk to. Because like you said earlier, ashamed. Feel that they don't want to look bad. They don't want to feel that, hey, I'm a failure. Especially the family, especially the friends, especially the coworkers. Now, when you're talking about your financial philosophy, I'm a person. I'm doing all right. I want to get in the real estate. You know, I'll talk about your real estate story 2005. Katrina. Send your packet. Send your packet. Uh-huh. How do I get in the real estate? My suggestion as far as real estate is to. It should be pre-approached with the capitalization phase. And you should not approach that unless you're in. You pass financial fluency. So what happens is a lot of times, you know, there's a lot of things out here. No money downed. And these are true philosophies. You can acquiesce real estate. We create a financing with no money down. But what the story that's not told is you can't keep real estate with no money down. Real estate is a heavy financial intensive business. And there's a. There's a. What you call it. A factor. It allows. It cries a lot of involvement. So the best thing you can do is go through that capitalization phase, which we know you beyond that. But I'm talking to the average person. You need to spend time. What does that mean? Capitalization. That's just saving money. A lot of people frown on saving money. But you can't approach your opportunity without an opportunity fund. So you want to come to the market well capitalized. That's my advice before you think about real estate. First focus on capitalizing your personal situation. And it makes a big difference. When you come to the market well capitalized, the first thing is you see opportunities that other people don't see. And a lot of times when you have money, things that you thought that you wanted when you were broke, you don't want it anymore. You know, it's that. And lastly, I say this. What does well capitalized look like? That's a very subjective language. But we do know that Warren Buffett's right hand man Charles Munger. He said you got to get your first 100,000. Do whatever you do to do that. Please don't go anywhere. We'll be right back with more money making conversations. Masterclass. Now I need for you to do me a favor. Right now, you'll follow or subscribe to money making conversation. It's free. And you can find it on the iHeartRadio app, Spotify, Apple Podcast, or wherever you get your podcast. Please do me that favor. Follow or subscribe, money making conversations. Think again. More Americans listen to podcasts than add supported streaming music from Spotify and Pandora. And as the number one podcaster, iHeart's twice as large as the next two combined. So whatever your customers listen to, they'll hear your message. Plus, only iHeart can extend your message to audiences across broadcast radio. Think podcasting can help your business. Think iHeart streaming radio and podcasting called 844-844-iHeart to get started. That's 844-844-iHeart. Welcome back to money making conversation masterclass hosted by me, Rishan McDonnell. Money making conversation masterclass continues online at moneymakingconversations.com and follow money making conversation masterclass on Facebook, X, and Instagram. You have to plan to be successful. You have to plan. And so many people, this is always get to meet. People want to get in the real estate, right? And so they sit up there and they go by land. But they have no way of saying they forget the one key thing about by land taxes. They're going to come get those taxes. So if you bought land, that's what you was talking about having capitalization. That's what you're talking about having nothing. Absolutely. Because if you are not in a position to make money off that land or that house that you just bought and you're not remodeling, you're not trying to flip it, the tax man is going to come. And he's going to come and want his money. And if he doesn't get his money, he's going to find you and find you. And eventually he's going to take back something that you invested in. And that's a key element that a lot of people don't think about when they buy land. Land is key. If you buy land and there's nothing happening on that land, that could become a liability very, very quickly. Correct? But Jayette? Absolutely. And I want to really speak to the $100,000 because it may overwhelm someone that's in another stratosphere. And the point is that this is a process, not a product. I'm speaking in a certain stratosphere when I see $100,000 and you have to respect the process. So if you're in a financial health stratosphere, you don't need to be thinking about real estate. You got to be a thousand there before you can be a 10,000 there before you can be a hundred thousand there. So respect the process, no way you are and grow organically. It was, I think Abraham Lincoln is credited as saying if he had six hours to chop down a tree, he was spend four of them sharpening his axe. So don't underscore preparation. It's not that nothing is happening. Something is happening. You're developing so that when you approach the market, you approach it from a position of strength. I love you, man. You got those catch phrases down pad, man. I love talking to you, man. What is the benefits of financial coaching that you provide? What are the benefits? So it's being able to talk to someone kneecap to kneecap is being able to hear from someone objectively. Someone to be able to feel what you feel that's been where you've been at. Like I said, most times we take advice from people that are on our same level. We need to hear from someone objectively on our next steps. Now financial coaching is a very serious step. So if you're not serious, you might want to read a book. You might want to watch the YouTube page. But when you talk about financial coaching, you're talking about you're really committed to going to that next level. It's important that people understand. I'm talking to brother Mahjahid Muhammad. He's a personal financial coach located in Katie right outside of Houston, Texas. And his name of the company is wealth coaching stratosphere. When we're talking about, three ways our clients can work with us. That means us being you. How can a client come to you in those three ways you benefit them? Absolutely. So I would say you can eat if you just have a one off question or concern. It's a suit me an email. And if you don't mind hearing in a pain, I can't give you investment advice. You want to seek those professionals out. But I would love to hear from you where you are and share ideas with you. So that's one way to just an email. If you lead a financial group or you promote financial literacy. And you want us to come on and share some concepts and help. The singles and we talk about money.
any marriage and different things like that. Or if you want direct financial coaching, visit us at worldcoachingstratisfield.com, set up a free consultation and we'll put you in the right direction. I love the word free. You hear that ladies and gentlemen? He will give you, like I said, man's not gonna give away his business, Kavril, but he's willing to consult you, lay down a game plan, find out if you guys can work together, then they put a plan in place and you both can win. But again, he's being honest. A lot of people who charged the work and sold and got a PM of fee, was $9.99 or $59.95. He's not saying that. He's saying that basically come to him, contact him, he'll lay down the whole process in a complimentary fashion, find out if y'all can develop a worker relationship, you get to work a relationship on point, then you win together. Now, let's talk about the personal financial condition of middle-income America, because that's where every politician who runs for office talks about middle-income, and then we got tariffs sitting out there for the Muhammad. Man, so the good news is that the economy doesn't have to be your economy, and that's why we teach personal finance. And here's the outlook of the average American that after take home pay, 20% is committed to transportation, another 30% to housing, and then another 40% is committed to living expenses, which leaves 10% which we're trying to invest in mutual funds real estate and what we do. But if we would just give focus to that 90%, that is in convert to financing, we need to get the banks out of our lives. They are, they have us over committed and underfunded. But if you work to free up that cash, now you create a tailwind that can really cause you to change your financial reality. So I know we're taught to have the credit cards. I know we're taught to get the real estate 45% 'cause out loud, it looks so good. And all these the cars and all these things, but we just need to get those banks out of our lives, free up that cash flow, 'cause look, if you have a six-figure income, your problem is you. And I hate to sound so blunt like that. It's about living within your means, and being a partner with your partner and coordinating your personal financial reality, and you can really change your situation. Wow. Now we were talking about banks. Now on your card, you sent me about infinite banking concept. I've never heard that. What is that? Infinite banking concept. Help me out there, brother, my alma. A gentleman named Nelson Nash, he identified a concept that he dubbed the Infinite Banking Concept. And through the Infinite Banking Concept, we're taught how to gain control of the banking function in our lives. That's something we really don't think about. But when we want to buy a home, when we want to buy a car, when we want an education, we have to go to third party gatekeepers that will determine if we can have that. But in building your own banking, you learn how to use a life insurance policy for its living benefits to accumulate capital that can in turn allow you to access for business opportunities. So I was my barber. We were in a barber shop. He decided to leave, and he started his own barber shop. So we were just getting a standard cut. And he said, "Hey, you know a chair in another barber shop." Yeah, so yeah, my barber was in a barber shop, and he decided to go through his own thing. So yeah, so yeah, so I'm at his chair in the barber shop, and we're talking, he said, "Hey, you know the barber shop we left is a for sale." And so I said, "Oh, that's interesting." Why the manager of the barber shop, why he didn't buy it? He said, "He don't have that type of money." I said, "You don't want a body?" He said, "If I had the money, I would buy it." So then light bulb, you know, an opportunity dropped in my head because I had resources though, that's the point I'm trying to make. Because I had capital, an opportunity came to me, and I was able to access that capital without permission from anyone, and this is the power of the Infinite Banking Concept. So the Infinite Banking Concept is a course. It should be approached as a course, and you should be under the tutelage of a professional to set it up. But once it's set up, it's an insin generational opportunity to gain and strengthen your finances and have living benefits. It's just a phenomenal approach to well-building, and to functioning and building a personal economy. As a financial literacy expert, what did you get your background, your learn? What courses did you take to get you to this point to be so literal, a literal, this level of expert advice that you're able to give us? I would say that the School of Hard Nights is a big, was my biggest university, but going into the fields, my experience in real estate, I learned a ton. Being in the insurance space, I learned a ton. A lot of self-study, I've been a tutelage under one of Nelson's top mentors, so a lot of great mentors and all that. So you can't underscore mentorship. You cannot underscore mentorship. And you know what's a lot that's not taught is that the game is sold, not told. There's a lot of great information you can get from YouTube, but when you really want to take it to the next level, you've got to be willing to pay, and that's what I've done. I paid for a lot of coaching and mentorship, and it's brought me to the next level. I've heard just termin' a lot. Can you break free from debt? The game is situated where you got to stay in debt. Correct brother, Muhammad? So when people talk about, use that term, debt free. That's not real correct? No debt freedom is real. It is attainable, and it is a beautiful space to be in. I mean, now, you're all old, brother, brother. You're telling me right now, you don't have a credit card bit. I don't have a credit card. Don't have a card note. Don't have a house note. Yeah, it's a beautiful space, but now it comes with a price. It comes with a price for the average person. It may take two to seven years to accomplish that, and I don't want to paint a rosy picture, but all I can say is it is show work, it is show work. I remember when we were on our journey, I asked my wife how much was her student loans. She said 50,000, and so we got into argument. 50,000, she said, yeah, you told me to defer. I said, I didn't tell you to defer. We go back and forth, you know what I'm saying? So once cooler hands prevailed, I said, all right, all right, we in it to win it. We don't do it. I'm laughing because you were like, I was like, you never heard that number. No, no, no, at that time, that was huge for us. I was huge. And so it's like, sometimes, because I'm married, too, and sometimes my wife will say something, I go, and she go, I've told you that. Right. No. But here's the Kingsborough Resign. After cooler hands prevailed, we said, okay, let's attack it. We pulled the credit report. The real number was 72,000, almost fell out my shed. I was like, oh my God, it took everything. But you know, we stayed the course, we fought through it. And today, that's a major part that binds us, that journey. So yeah, it is attainable. It is a process you link with the right community. We can help you accomplish that. It's a phenomenal reality. Yeah, because now, which you, my brother, how do I create that financial game plan, which you brother, my grandma, you know, you, my personal financial coach, now, you are consulted with you. It's free. So now I'm going, I like this brother. He got everything he's saying, all the right things to me. How do you create that game plan for me? Well, we're gonna start with a discovery call, and we're just gonna open up your financial situation and let you see it for yourself, everything. We're gonna look at all the ends and out. And once we look at all the ends and out, we gonna give you a game plan that starts from scratch, that allows you the one to get out of the situation you in to begin to capitalize. The first phase of capitalization is an emergency fund. The second phase is a homeowner down payment, unless you already have it. And the third phase is building up that opportunity fund and then show you how to approach the market correctly. So I'm giving the overview, but trying to give you some insight to how we put you on a plan and work with you. Allow the axles questions and work through that process. You know, the process is this. If I said that with you, do I need life insurance, brother Mahama? Do I need life insurance? The everyday person need life insurance. So personal finance is personal. So it needs to be a personal assessment to answer that question. Generally speaking, yes. There's some one off situations where you're single, no children, nobody's dependent on you. You may get away with a burial policy. You know, you don't have any assets or whatever, but generally speaking, we need to get into the business of insurance to promote this intergenerational exchange of wealth so that we can compete with our counterparts. So we strongly encourage you to get that insurance policy in place. Absolutely. I'm telling you something. This is. been fun. Fun and educational for me. I love your personality. I love your approach. How do we interpret you, brother Muhammad? There's a few ways you can go to wealthcoachingstrategsphere.com. You can email me at
[email protected]. I'm on Instagram @weldcoachingstrategsphere and yeah, I just love to connect with you. Send me an email. Let me know what your questions are because I'm so happy to do so. Well, he's up there doing big things down and Katie Texas, which is right outside of Houston Texas. My home town. He's a personal finance coach, a wealthcoachingstrategsphere. He's brother Majahed Muhammad. Thank you for coming on Monday making conversation masterclass my friend. Thank you, brother. We'll talk to him. Yes, sir. Thank you for listening to this episode. It's free. And you can find it on the I heart radio app Spotify Apple podcast or wherever you get your podcasts. Follow or subscribe money making conversations. Keep winning.
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