How do successful people spend money? I’ve interviewed a few young men who are influential in the online community about how they handle money: Pat Flynn of Smart Passive Income, Dustin Hartzler from YourWebsiteEngineer.com, and now John Lee Dumas.
Previously released interviews with successful people:
Watch this video to see Pat Flynn’s answers http://MoneyPlanSOS.com/PatFlynn
Watch this video to see Dustin Hartzler’s answers http://MoneyPlanSOS.com/DustinHartzler
Listen to this episode to hear John Lee Dumas’s answers
About John Lee Dumas
John Lee Dumas is the Host of the top ranked podcast EntrepreneurOnFire where he interviews today’s most inspiring and successful Entrepreneurs 7-days a week.
He founded Podcasters’ Paradise; a community where Podcasters can create, grow, and monetize their podcast. EntrepreneurOnFire generates over 550,000 unique downloads a month with past guests such as Seth Godin, Tim Ferriss, Barbara Corcoran, Gary Vaynerchuk, and Guy Kawasaki.
By the way, I’m an active member of Podcasters’ Paradise and have contributed to the course with a video about PrettyLink, a WordPress plugin that is used in every episode of the MoneyPlan SOS podcast.
John and Kate, his business partner and girlfriend, pull down more than $100,000 a month in net profit ($102,000 in May alone). While income doesn’t classify someone as wealthy, he certainly has made enough to qualify himself to tell us how wealthy people handle money.
John Lee Dumas shares
- The first financial experience that made him feel like an adult
- How much emergency savings played a part in him starting Entrepreneur On Fire
- If he ever purchased a suit or outfit that cost more than $1,000
His surprising answers
- John is of the opinion that education isn’t valuable (but “self-education” is)
- He does not have a 5-year goal
- He leases a car
And to top it off, he doesn’t have a household budget. It’s not that I think he needs to budget every dollar, he certainly has quite a few of them to play around with. What shocked me is that he doesn’t use FreshBooks, one of his sponsors. To be fair, FreshBooks is more of an accounting software program and I didn’t ask if he has a business budget. But he makes three times as much as I do so I’ll shut up now. 🙂
But what about the leased car?
I was most surprised that John Lee Dumas leases a car. Why? He makes plenty of money to be able to purchase a new car every year without damaging his net worth.
Then I did the math: His monthly lease payment is $190 a month. That is .001% of his monthly income.
.001% of an American household bringing home $60,000 a year is $5 a month.
What this means is the ratio on John Lee Dumas’s car lease IS LITERALLY LIKE A STARBUCKS COFFEE each month.
So I’ll shut up now.
What to do when debit cards are discontinued
It is rare but occasionally a debit card program is cancelled. We experienced this last year with PerkStreet, the only debit card program with Perks.
The good news is the money is still yours. The only question is how to get access to it.
PerkStreet: The parent company of PerkStreet, Bancorp, transferred the account to be under their brand. They even offered 1% on all balances for the first few months after PerkStreet closed their doors last September (2013).
BTW: GREAT NEWS! PerkStreet customers who accrued more than $15.00 in unredeemed Perks were issued a check in June 2014. Read more about it here.
Suze Orman’s Preferred Card: According to the New York Times, Suze Orman’s Preferred Card will be discontinued on July 1, 2014. The Preferred card was a pre-paid debit card with a few benefits like free credit reports and credit monitoring. You can do this yourself as shown in this 4-minute video.
Customers of Suze Orman’s Preferred Card are asked to spend the balance to zero. Those who don’t will receive checks in the mail for the remainder.
Note: Here is a link to the Suze Orman 4-letter Word Drinking Game
Other links from this episode:
How to launch a successful podcast: Podcaster’s Paradise membership group
More on how John Lee Dumas makes money podcasting Podcasters Roundtable – The John Lee Dumas Effect
My article on The John Lee Dumas Effect http://yesyoucanpodcasttoo.com/the-john-lee-dumas-effect/
Funny money quote (Tweet this)
“Maximizing credit card points is like to adding another flight to your trip: You get more miles but spend more time in jet!”
Special thanks to
Denny Krahe for today’s podcast intro. Denny is host of the Better Health 101 podcast.
Rey Brown for having me as a guest on Smartphones Made Easy. We talked about 10 ways to save money with your Smartphone.