By The Numbers in Japan! How To Have Your Passive Income Outweigh Your Expenses.

Summary

In this video, BSP Hope discusses the importance of understanding numbers, particularly in the context of living and investing in Japan. He shares insights on the percentage of foreign immigrants in Japan, highlighting that Americans make up a small portion of this demographic. He emphasizes the value of passive income, explaining how it can exceed monthly expenses, leading to financial freedom. BSP Hope also stresses the significance of having out-of-market funds for unexpected expenses, suggesting an 18-month reserve as a rule of thumb. His advice is aimed at helping viewers optimize their financial situation in Japan.

Takeaways

• 📊 The speaker emphasizes the importance of understanding numbers, particularly in relation to net worth and investments.
• 🌍 Discusses the percentage of foreign immigrants in Japan, highlighting that they make up only 2.66% of the population, with Chinese and South Koreans being the largest groups.
• 🏆 Points out the rarity of certain nationalities in Japan, such as Americans and Canadians, and how this can impact one's experience living in the country.
• 💼 Shares personal experiences as an American living in Japan, including the perception and treatment of Westerners in Japanese society.
• 💰 Talks about the concept of active and passive income, suggesting that building passive income is crucial for financial stability and growth.
• 📈 Advises on setting financial goals where passive income matches or exceeds monthly expenses, allowing for reinvestment and wealth accumulation.
• 💹 Highlights the significance of reinvesting dividends to grow passive income over time, regardless of market fluctuations.
• 💳 Stresses the need for out-of-market funds for unexpected expenses or opportunities, recommending having 18 months' worth of expenses saved.
• 🌐 Provides investment advice based on personal experience, not professional expertise, and encourages viewers to consider their financial strategies carefully.

Q & A

What is the percentage of foreign immigrants in Japan's population?

Foreign immigrants make up 2.66% of Japan's population.

Which ethnic group is the largest among foreign immigrants in Japan?

The largest group among foreign immigrants in Japan is Chinese, followed by South Koreans.

What is the percentage of Americans living in Japan among the foreign population?

Americans, including those in the military, constitute only 2.1% of the foreign population in Japan.

Why does the speaker emphasize the rarity of certain nationalities in Japan?

The speaker emphasizes the rarity to highlight the unique position and respect that Western nationals, such as Americans, Brits, and Canadians, often receive in Japan.

What does the speaker mean by 'numbers guy' and how does it relate to his content?

The speaker refers to himself as a 'numbers guy' because he frequently discusses financial and statistical information, particularly related to investments and net worth.

What advice does the speaker give regarding active and passive income in Japan?

The speaker advises that one should aim to have passive income that exceeds their monthly expenses, allowing for financial growth and eventual reliance on passive income rather than active income.

How does the speaker define 'habitual spending' and why is it important?

Habitual spending refers to a consistent, predictable level of monthly expenses that one can manage without constantly monitoring. It's important for understanding one's financial habits and planning investments.

What is the significance of having out-of-market funds according to the speaker?

Out-of-market funds are significant as they provide liquid assets for unexpected expenses or market downturns without disrupting the investment portfolio or forcing the sale of investments at a loss.

Why does the speaker suggest maintaining a certain percentage of investments in crypto despite market fluctuations?

The speaker suggests maintaining a consistent percentage in crypto investments to keep the portfolio proportionally balanced, avoiding the temptation to chase short-term market movements.

What is the recommended minimum out-of-market funds one should have according to the speaker?

The speaker recommends having out-of-market funds that can cover at least 18 months of monthly expenses to ensure financial security during market downturns or emergencies.

Outlines

00:00

🌍 Demographics and Rarities of Foreigners in Japan

The speaker, BSP Hope, initiates the video at Starbucks in Castle Park, emphasizing the spontaneous nature of his content creation. He thanks his viewers for their support and encourages engagement. BSP then delves into the topic of immigration in Japan, highlighting that foreigners constitute only 2.66% of the population, with Chinese and South Koreans being the largest groups. He points out the rarity of Americans, who, including military personnel, make up merely 2.1% of the foreign population. BSP shares personal anecdotes of living in Japan, noting the surprise of locals when they learn he's American, and expresses his enjoyment of the respect accorded to Westerners, particularly Americans, in Japan.

05:01

💼 The Importance of Passive Income for Expats in Japan

BSP Hope transitions into a discussion on financial strategies for living in Japan, focusing on the concept of active versus passive income. He explains active income as earnings derived from work and passive income as earnings from investments that require little to no effort. BSP emphasizes the goal of shifting from reliance on active to passive income, using Japan's cost of living as a backdrop. He provides a hypothetical scenario to illustrate how covering monthly expenses through passive income can lead to financial stability and freedom. BSP also touches on the cultural aspects of saving and investing, suggesting that viewers should consider their spending habits and start investing to build a substantial passive income stream.

10:01

💹 Building and Maximizing Passive Income in Japan

Continuing his financial advice, BSP Hope discusses the strategy of growing passive income to surpass personal expenses. He uses the example of a monthly expense of $1,200 and the importance of generating a passive income of at least that amount. BSP explains that once passive income matches or exceeds expenses, the individual is essentially living 'for free' as the passive income can be reinvested, growing wealth over time. He stresses the importance of reinvestment and the potential for passive income to increase, providing a cushion against market fluctuations and inflation. BSP also introduces the concept of 'out of market' funds, suggesting that individuals should maintain liquid funds outside of investments to cover expenses during market downturns or unforeseen events.

15:02

🏦 The Role of Savings and Investment Strategy in Japan

BSP Hope elaborates on the practical aspects of managing finances in Japan, advocating for a clear understanding of one's spending habits to establish a baseline for savings and investment. He introduces the concept of 'habitual spending' and suggests setting aside a portion of disposable income for savings and investments. BSP discusses the importance of starting to invest early, even with small amounts, to build passive income over time. He also addresses the need for a diversified financial approach, including maintaining 'out of market' funds for emergencies or large, unexpected expenses. BSP's alarm interrupts the discussion, prompting him to conclude the video with a promise of a follow-up to further elaborate on these financial strategies for living in Japan.

Keywords

💡Investment

Investment refers to the allocation of resources, such as time, money, or effort, with the expectation of generating a return on that investment. In the video, the speaker emphasizes the importance of understanding and managing investments to achieve financial stability and growth. The speaker, who identifies as an investor, shares personal experiences and advice on how to live off investments in Japan, highlighting the significance of investments in achieving financial independence.

💡Net Worth

Net worth is the total value of an individual's or institution's assets minus their liabilities. It is a measure of financial health and wealth. The speaker mentions being conscious of his net worth on a daily basis, which underscores the importance of tracking and managing personal finances. This concept is central to the video's theme of financial literacy and investment strategies.

💡Passive Income

Passive income is income earned with little to no effort by the recipient, typically generated from investments or rental properties. The video discusses the concept of transitioning from active income, which requires continuous work, to passive income for financial freedom. The speaker encourages viewers to build passive income streams that can eventually cover their living expenses, illustrating this with examples from his life in Japan.

💡Active Income

Active income is the money earned through active participation in work or business activities. It is the income one receives from their job or any activity that requires continuous effort. In the video, the speaker contrasts active income with passive income, explaining that while active income is essential for daily living, it is passive income that leads to financial freedom and security.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. The speaker briefly touches on inflation in the context of Japan's economy, noting that Japan's inflation rate is lower compared to Western countries. This point is relevant to the discussion of investments and passive income, as inflation can impact the real value of returns on investments.

💡Dividends

Dividends are payments made by a corporation to its shareholders, usually as a distribution of profits. In the video, the speaker discusses dividends as a form of passive income that can be reinvested to grow wealth over time. He emphasizes the importance of reinvesting dividends to increase passive income and achieve financial goals.

💡Habitual Spending

Habitual spending refers to the regular, predictable expenses that a person incurs as part of their daily or monthly routine. The speaker talks about establishing habitual spending patterns as a way to manage finances effectively. By understanding one's typical spending habits, it becomes easier to budget and allocate funds towards savings and investments.

💡Out of Market Funds

Out of market funds refer to cash or assets that are held outside of the investment market and are readily accessible for immediate needs or emergencies. The speaker highlights the importance of maintaining out of market funds to cover unexpected expenses without disrupting the investment portfolio. He suggests having enough liquid funds to cover at least 18 months of expenses as a financial safety net.

💡Reinvestment

Reinvestment is the process of plowing back earnings or profits into the same or another investment to generate additional income or growth. The video emphasizes the power of reinvestment in building and sustaining passive income streams. The speaker explains that reinvesting dividends and profits is crucial for growing wealth and achieving financial goals.

💡Diversification

Diversification is a risk management strategy that involves spreading investments across various financial instruments, industries, and other categories to optimize returns and reduce risk. Although not explicitly mentioned in the video, the concept is implied in the speaker's discussion of investment strategies. Diversification is a common practice among investors to mitigate the potential negative impacts of any single investment on the overall portfolio.

Highlights

Introduction to the video and the concept of discussing numbers in Japan.

The speaker emphasizes the importance of understanding numbers for making informed decisions.

Discussion on the percentage of foreign immigrants in Japan, which is only 2.66% of the population.

Breakdown of the largest immigrant groups in Japan, with Chinese and South Koreans being the most prominent.

Surprising fact that Americans make up only 2.1% of the foreign population in Japan.

The rarity of Western immigrants in Japan and the respect they tend to receive.

Personal anecdote about being an American black man in Japan and the unique experiences that come with it.

Advice on the importance of building passive income streams for a comfortable life in Japan.

Definition and explanation of active income versus passive income.

The strategy of moving from active to passive income as one progresses in life.

Example of how to calculate the ideal passive income based on monthly expenses.

Importance of reinvesting passive income to grow wealth over time.

The concept of habitual spending and how it relates to budgeting and financial planning.

Advice for young people moving to Japan on managing active and passive income.

The role of dividends in building passive income and the importance of reinvestment.

Discussion on the importance of having out-of-market funds for unexpected expenses.

Recommendation to maintain a balance between market investments and out-of-market funds.

Conclusion and a call for viewers to apply the discussed financial strategies for a secure future in Japan.

Transcripts

so what's up everybody this is bsp hope

y'all can hear me out here we got some

background noise um but I'm up here to

Starbucks here the Castle Park

Starbucks this is my third video today I

I I do videos spontaneously so um

whenever comes to my mind if something I

feel like is really important I'm going

to bring it out um so first of all I

want to give everybody a shout out

thanks for supporting my Channel please

hit the like button and subscribe and we

can get some more information out here

for Japan

man okay so here's the

thing I'mma call this numbers in Japan

that's what I am you know I'm a numbers

guy I always talk about numbers I'm

always think about numbers I'm a guy

that knows my net worth on a daily

basis um I'm an investor I I live off of

my investments here in

Japan so um I'm going to be giving um

some investment advice up here on my

site um start talking about numbers more

here on my channel just to kind of give

every proba an idea what's going on okay

so first numbers I'm going to talk about

is

this uh immigration ethnic groups in

Japan if you

will you know that uh when you walk

around places like Tokyo and uh um you

know Osaka you're going to feel like

there's a lot in kto you're going to

feel like there's a lot of um immigrants

living in

Japan but did you know that they are

only

2.66% of the population in Japan are

foreign immigrants Japan has about4

million

people and out of that

2.66% the largest group are

Chinese and followed by South Koreans

then you have Vietnamese

Filipinos Indonesians

nepales and down the line Americans

living in Japan are way down the line

yes in fact Americans including the the

Americans that are in the

military are only 2.1% of the foreign

population in Japan so that's only 2.1%

of the the foreign immigrants in

Japan so I want the reason why I'm

bringing these numbers up is because I

want you to know just how rare you

really are Canadians are you you're just

you're just like minus I mean you're

like 0% something

in this

country England you're about one point

something of not of the country but of

the immigrants that are in the country

of the foreign immigrants that in the

country so last I checked according to

22 there's something like 16,000 Brits

living in in

Japan those numbers are very low so you

may think just because you see a bunch

of people from Europe walking around or

whatever that there's a lot of people

from Europe here but they're actually

not those most of those people used see

walking around are

tourists okay so what does that mean to

you why why do you care about the

Immigrant numbers well I give you an

example here I live out here in nigata

in the place called Joy

City 181,000 people live in my

town since I've been living here since

last

June and I've walked around I've driven

around I drive everywhere and I've only

seen in my city and he I know he wasn't

a resident I've only seen one brother

one other brother besides me and my

son in the city now the next city over

they have more immigrants up there

because Mio's got that big skiing thing

going on but in my city I was the only

I'm the I'm me and my son are the only

ones that I know of that live here now

NE got the city which is a much bigger

city than where we liveing in you're

talking about 900,000 people they have a

lot of people not a lot but they have

more the people the black people that

you see there are mostly Africans so

when I first got here and I think people

were kind of didn't even know I was

American they looked at me like oh he he

must be African

well some people ask me they they're

like they say hey where you from and I

say I'm from America they oh Kaku now oh

you're an American and that's why I

always tell people I love being an

American black man in Japan because

that's what it that's to be frank

Americans are at the top of the food

chain in this

world um so that's why you know you you

want to be proud of yourselves as an

American you be proud of yourself as a

Brit a

Canadian um the Western we we're Western

Nations Australians we get treated with

a lot of

respect from people here in Japan so

that's why I love being American over

here I love being American anyway but I

love being American especially in Japan

because I know that we sit at the top of

food chain so there's not that many

American IM ANS living here like I said

with the exception of the base now the

military inations probably have a good

95% of the American immigrants so now I

always thought that there was way more

Americans here than that but no there's

not that many Americans here at all

realistically speaking and trust me when

I go up the hill I'm I know two

Americans up there that happen to be

black like me everybody else is from

either England or Australia yeah so

that's how the numbers work so so know

that you are a rarity when you're

walking around here just imagine your

Rarity and just imagine if you're making

some good coin and you got some good

Investments coming

in that's the real deal so if you don't

open your mouth and tell people where

you're from if you're proud of where

you're from they won't they will assume

that you're something else or you're

from somewhere else they will assume it

you know the way I'm dressing I got my

Dodger grab on a smart Japanese can

pretty much tell oh this guy must be

from from the states but the average

Japanese is not looking at people like

that so they don't know where I'm from

until they ask me that's why I want to

bring that up

now my second part of the numbers in

Japan I'm going to talk about here and

these numbers are a lot more um real you

know not realistic but a lot more

important to people here and they're

going to help you live in Japan live a a

smoother life in Japan the advice that I

give up here on my channel is designed

to help people live very well here in

Japan now I'm getting a lot of of

questions from people uh wanting to know

about Investments or how these

Investments work I'm not a professional

investment broker I I you know I'm just

telling you what I know and what I where

what I see is working what's working for

me one thing I want to want to talk to

you about to I mean what I want to tell

you is

this everybody's making active and

passive income when we start off when

we're When We're Young when we're like

you know soon as we get out of high

school or we go get out of college

whatever the case may be or even when

we're High working part-time jobs the

only way that we know how to make money

is with active income through active

income meaning we work with our hands

feet head toes ass in some cases

whatever you decide you want to do for

your profession we work and that's what

active income means active income means

that you are receiving something because

you're doing something for that money

all right now the goal is always as you

progress as you get older to move that

pendulin let's say if this if the active

income is all way on the left you're all

the way on the left into the Spectrum

you want to move that as far to the

right as you possibly can meaning you

move it farther and farther as further

to the right means you are living off of

100% passive income that's what that

means

so a lot of people aren't even

living they don't even get 10% passive

income not even 5% not even

1% but here's how I'm telling you how

passive income

works

so now if you let's say you have your

your living expenses every month and I'm

I'm talking about I mean if you're

living in Japan because I'm I'm I'm more

familiar with the Japan numbers now

let's say that you living expenses in

Japan about $1,200 a month $1,200 a

month and and so you and your pay is

giving you about $2,000 a month I'm

being very conservative if you're the

numbers so you're at a $24,000 a year

clip right which I told you earlier that

um about 29% in Japanese males in this

country is making less than $25,000 a

year all right now if you have a $1,200

outlay every month you know with food

rent you know you know

incidentals then if you're getting

$2,000 a month guess what after you end

up paying it if this is if you're get

straight cash if you after all your

taxes are paid or whatever you that

means you have $800 left over pretty

much that $800 is going to turn into

disposable income you'll probably Park

some of it in savings most most people

over here they're not investing in of it

any of it so I would say 50% of that

$800 left over is going to be toward

toward um SA savings or maybe 60%

Japanese are very average Savers and 40%

is going to be disposable income or

saving up to do something disposable

right but here's the thing that people

need to start thinking

about you need to start thinking about

what if you were

getting the same amount of more and

passive income as your expenses yes this

is something that people don't think

about right

I think about this all the day all the

time you know why because that's what I

do that's what I do yes so like I said

I'm a retired software

engineer and you know when you have

retirement monies coming in that would

be considered active income right

because you're retired income but if you

have passive income that's making you

more money than what you're paying out

that guess what that feels like and it

really and you truly is that means

you're not really paying

anything see I you got to put this m I

know yeah people say well I'm I'm

physically paying that money yes but

you're really not paying you you're

you're making money you truly are making

money because think about it you're not

making money on your income you're

making you're yeah you're making I mean

active income but your passive income is

the money that you don't normally touch

at least you shouldn't touch it anyway

you should be using just your active

income

but if you want to set a goal for

yourself as because I you know I get

people saying hey how much should I do I

need for dividends or whatever

Investments to live in Japan well here's

the thing if you're making if you're

paying out $1,200 a month then you

should your passive income should be

$1,221 a month you see what I'm getting

that that means you you're you're

canceling out the money that's being

spent out that means that all that money

that you can you can literally say

that if you you can look at it so many

different ways but if you're making if

you're paying $1,200 a month but you're

making $1,200 a month passive income and

you're getting your active income of

course because you're paying it to the

active income you're not spending your

passive income to pay your expenses

you're using your active income to pay

your expenses well guess what each and

every month when that money is the same

or more than you what you're paying out

that's money that's put aside for later

on down the road to where you won't be

living off your active income anymore

you'll be living off a passive income

and guess what you need that passive

income to be growing every month so like

I said if you're paying out $1,200 this

is let's look at the 12 month of course

one year is 12 months you start off you

paying $1,200 a month expenses and you

and if you got your passive income up to

$1,200 a month you're even by the end of

the year the law of averages say that

you your passive income should be now

you're making 10% more than what you

were paying out you see so at the end of

the year your passive income is now

giving you $1,320 every month and your

your expenses that you're paying out are

$1,200 a month now in Japan that's

doable because in Japan inflation is not

like it is in the West in the west you

got to always compensate for inflation

so let's say that your your passive

income is is going to go up 10% but your

expenses are going to go up say 4 or 5%

depending on what the inflation rate is

lately like a few years it was 8% right

coup years ago but still you're sitting

pretty if you're getting that 10% off of

your passive income as long as your

passive income is more than what you're

paying out you're making money your

money is growing I know you got to

figure you got to put it all in your

head what I'm trying to say but that's

how we live here in Japan that's how we

live all my expenses that I pay out my

rent my my electric bill my phone bill

water bill you know food things of that

nature

you know incidentals like you know you

want to buy clothes or shoes whatever

all the funds that I spend out every

month without getting to personal in

Japan I'm making way more money on with

my passive income than that and my

dividends with my dividends your

dividends a passive income I'm making

way more money than that yes and when I

was working when I was making that

passive income see that passive income

was building and building and building

and building and building for me all

these years so in a sense it didn't feel

like I was paying for anything because I

was that money was sitting over there

see that's how rich people do it they

always make sure that their passive

income is way more even $1 when you

start off even if you just have $1 over

you're good now is that passive income

going to be obtainable that amounts

those amounts are going to be obtainable

right away no it's going to take some

planning so what you do is if you're

starting off if you because you need to

be that's the direction you need to be

going in trust me

so you start off you know what your

monthly expenses are you need to know

what you're spending all the time I'm

not saying be a tight WT you need to

know how money works because what you're

going to establish is you're going to

establish what they call habitual

spending and that means that you don't

even really have to look at all all the

time and you pretty much know you're

you're going to be spending around ,200

or $1,250 or $1,150 every month see it's

habitual spending the way you eat the

way you dine out the kind of the way you

shop

it becomes habitual you got people

actually sitting down okay let's look at

the budget let's do this let's do that

but that's not realistic when you think

about it because you're going to spend

some money off the side this life throws

everything all kind of things at us all

kind of things come at us life us right

so you're going to spending sometimes

this much or that much and you'll know

when you've going over your budget

because you're going to look at you say

damn I spent $1600 what damn I spent a

little bit too much yeah you're going to

know but if you look up and you say oh I

spent like $1,230 this month oh it's not

going to bother you because that's

that's what we call habitual spending

you're got to give yourself plus or

minus 100 on the habitual spending scale

so if like I said if your expenses are

$1,200 and you go say $1,300 or $1,100

either way you're good because you got

to give yourself that plus orus 100 some

people may go plus orus 200 it just

depends on what your level of passive

and active income is that's what I'm

saying see see how that works so if you

are say in your late 20s and you move to

Japan and you are whatever you're doing

your your your expenses are about $1,100

whatever the case may be th000 that's

make a th000 for round number and your

active income because you got to work

cuz you're young in Japan you if you're

getting like $1,500 or $2,000 a

month at that point that disposable

income left over see see what I'm saying

if you're making 2,000 minus

1,000 and then you're going to start you

know putting maybe you might might have

like $100 or $150 worth of disposable

income meaning you're going out at the

bars you're drinking a beer or you you

know whatever you do your friend calls

you up out of the blue okay let's go

that's disposable income you're you need

to be putting at least of course half or

more in your savings account right and

I'm I'm going to get to that what I call

that in a

minute and then anything left over you

need to start using for Investments you

need to start investing that money you

need I'm sorry my alarm went off I'm

sorry you need to start looking at

things things that will will um you know

pay you dividends right away so you may

start off getting like only $5 a month

dividends but still that's okay if

you're getting $5 but a month from

dividends but you're you're paying out

$1,100 or $1,000 like I said to make the

numbers easy guess what now you're only

paying really out $995 you're getting $5

back you see what I'm saying so that's

going to grow that's going to grow

little by little every month now it may

take you a few years depending on how

aggressive your Investments strategy is

for your dividends but eventually that

that passive income is going to match

your your your expenses should you not

change up your expenses of course as you

get older you might your expenses might

go from $1,000 a month to say $15 a

month but that income should be going up

at the same time active income means

that went up too you see what I'm saying

so that's okay if you if you're going to

be paying more your active income went

up but you still got to keep that

passive income growing that passive

income has to to keep growing because

once that passive income grows you're

going to get into the position where

years later you're like oh my goodness

I'm in a really nice spot now because

all that money is be is reinvesting it's

reinvesting it's reinvesting it's

reinvesting itself that's what we do our

money is always reinvesting I'm talking

to you right now I'm making money I'm

sleeping I'm making money I wake up in

the morning I'm making money I'm not

doing anything I'm making money that's

how it has to be your passive income has

to keep going I don't worry about what

the market does if the market goes down

whoop they do I don't have money I don't

have and I'm getting get back to the

Savings in a minute I'm I don't have any

money that I need to use right away in

the market anyway money that I KN that I

need to use right away or within a few

months or for like I said with this with

these upgrades I need to pay for coming

up or if I want to get a car or whatever

Furniture whatever the case may be that

is put into a outof market account see

and this the first time a lot of you

guys are hear about this I just said

this today for the first time I was

on I was on the phone and with with a

friend of mine Soul Shader back in the

States and I had mentioned to him we

were talking about out of Market

expenses and the reason why that came up

is because Bitcoin is down right now

right crypto's down so automatically

everybody's going to think oh the

Market's down crypto or whatever you're

in the market I'm going to purchase more

yeah of course purchase more

but be aware that you do not want to

still you don't want to change up your

percentages right so like for me I'm a

98% Investment Portfolio 2% bit crypto

right so just because crypto go down

went down doesn't mean I'm going to jack

it up to 5% of my portfolio no I'm going

to keep the levels the same keep it

proportionally equal right now I'm not

going to change percentages that's where

you're out of Market income or out of

Market funds come in when you have out

of Market funds you can take some of

those funds and then you can start to

distribute those funds when the market

is low see without messing up your

without you know losing any money

because you're putting it in the market

yeah the market might go down but you're

not losing because you didn't sell

anything and you have to make sure

you're getting dividends once you get

once you're getting dividends dividends

don't care if the market goes down

you're still getting those dividends

every month which is still contributing

to your

reinvestment see so I'm going to go soon

I think I've been talking a little bit

too much but I will do a part two on

this I have to look at my video and

remember what I talked about um I got to

go pick my son up things of that nature

but my alarm went off so that means I to

go get him but yes what I'm saying is

you need to understand that you have to

work that passive income build up that

passive income to where it's more than

your expenses that is the secret and

then once you get it even with your

expenses let it re keep and reinvesting

itself to where eventally it will be

twice or three times what you're

spending every month and you you're

looking at your active income you say

okay I don't mind boom here you go here

you go here you go and guess what you

can then with that money going out like

that you can keep building up your out

of Market funds because you're out of

Market funds are so important a lot of

people ignore out of Market funds they

automatically think that well I don't

need to have any money in savings I'm

just going to put all this money in the

market and this that the other but wait

what if you need something what if you

have to go on the trip what if your

friends come in country and say hey I

need to go I need to go here I need to

go there if you don't have any

aftermarket funds you're going to be

pulling money from the market that's in

a loss right if you try to pull money

from the market say the beginning of

July middle of July those few weeks when

the market was down you already lost

some money you're the red right now

you're trying to pull money out of the

red you don't want to pull nothing out

of the red nothing if anything you want

to purchase something in the red but in

order for you to do that you need to

have your out of Market funds good and

the rule of thumb is you need to have

enough out of Market funds to last you

for 18 months should everything shut

down the market shut down the bank shut

down well I mean not the banks but the

market shut down you need to have access

to out of Market liquid funds for at

least 18- monthly expenses so like I

said if you're

eventually if you're spending $1,000 a

month realistically you need to have

$188,000 a month in your out of Market

expenses yes I mean your out of Market

fence so this is

bsp I'm calling this the numbers in

Japan I will be doing some more videos

like this trust me but this is just came

out I just wanted to talk to you about

it because the numbers were on my mind

bsp Japan I'm out I'll talk to you later