If you watch football, you probably know that Rob Gronkowski is a tight end for the Patriots and has won a few Super Bowls with Tom Brady. He’s a big guy who seems to have a lot of fun off the field.
To some, including my wife, he comes across as a big, dumb jock. You know the type from back in high school.
Well, Gronkowski is no dumb jock. He’s certainly big, but he’s actually very smart when it comes to dolla dolla billz.
Want to know why?
Because he hasn’t spent any of the money he’s made from his NFL salary, and he’s made a lot of dineros. I believe he made 10.5 million last year alone. On top of this, he collected a 2.5 million bonus for being named All-Pro. In 2012, he signed a contract valued at 54 million. He still has every penny he collected today.
Instead he lives off of what he refers to as his “marketing money.” This is the money he generates through various endorsement deals with Dunkin’ Donuts, Nike, and Body Armor sports drinks. He saves and invests every penny collected from the Patriots and spends all the money he makes from endorsements.
I also read somewhere that he has actually earned more money from his investments than he’s made through his labor. Just think about that for a minute. Have you made more money from your investments than you have from your work? It’s an interesting question to think about, isn’t it?
I did a search of my Cashflownaire Members and didn’t see his name. Sadly, he’s not a Member; however, his strategy for money management is the exact same strategy I teach in my book “The Cashflownaire Plan,” which is to create monthly cashflow equal to twice your living expenses. Use half of your cashflow to eliminate your need for a paycheck so you can buy your life back. Use the other half of your cashflow to invest. You’ll have to read my book and my Cashflownaire Newsletters to see what I believe is the best investment you can your extra monthly cashflowz.
This isn’t the first well known person that uses this money management strategy. I believe Jay Leno does the same thing…. only spending half of what he makes.
Think about how powerful this idea is and you’ll see it’s the reason why Gronkowki has made more money from his investments than he has through his paychecks. It’s hard to make a lot with your investments when you’re not investing a lot each month. It’s a lot easier to make more from your investments when you invest half of what you collect each month. Because you’re investing so much each month, you benefit from accelerated compounding.
The tricky part for most is that we can’t afford to invest half of what we make. This is why we have to get off are asses and create more monthly cashflow. We have to create the money we need to invest. We can’t just sit back and accept what we have. We can’t be ok with investing 10% into our company retirement plan. We can’t settle.
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