How to Live a Rich Life with Joshua Krafchick

In today’s episode, our guest is Josh Krafchick. He is the visionary behind The Unconventional Money Guide, a platform dedicated to empowering individuals with the knowledge and tools they need to navigate the complexities of real-life finances. After following the conventional path of college education, he quickly realized that the traditional teachings fell short in preparing him for the realities of the modern world. Driven by this revelation, he embarked on a mission to bridge the gap and provide others with the essential information they need to succeed.

[2:40] Why should I listen to you?

You should listen to me because I will give you the correct answers. I keep things accurate, honest, and concise.

[5:20] How did you gain in-depth knowledge about money?

My journey began in a divorced family where financial struggles were a constant presence. One parent saw me as an asset, while the other saw me as a liability. The heated arguments and continuous focus on money made me realize that I didn't want to become a yelling adult. Even in third grade, I wrote down my aspiration to be a non-yelling person. From that point on, I dedicated myself to creating opportunities and educating others on effective ways to grow their wealth. Having witnessed the negative impact of money on people's lives, I shifted my focus toward the positive aspects of wealth. While many associate money with negativity, such as it being evil or causing changes in character, I chose to embrace its potential for positive transformation. I believe that the more money and assets one has, the more they can make a difference and help others. Sometimes, it's necessary to leave certain individuals behind to pursue a path of growth and empowerment.

[7:00] What have you experienced about people who demonize those who have money?

Often, those who demonize people with wealth are either lacking education on the subject or have grown up in households where money was a contentious issue. As children, we tend to idolize our parents and believe what they say. Consequently, many people I come across have limiting beliefs and even engage in self-sabotage. For instance, some individuals share stories of how they started earning money, only to find their friends and family suddenly approaching them for financial help. This situation can lead to a depletion of funds as they prioritize others over themselves. Individuals must recognize the importance of taking care of their financial well-being before helping others. Additionally, I agree with your statement about the desire to revert to comfort. When people experience significant financial success, they may feel a sense of discomfort as they question whether others are genuinely kind or simply interested in benefiting from their wealth.

[8:55] What would you recommend to people who don’t know how to deal with money?

It's important to acknowledge that in every aspect of life, including wealth and success, there is a spectrum of individuals. Some coaches are exceptional, while others may not be as effective. Similarly, some kind-hearted individuals possess significant wealth, just as there are individuals with wealth who display less desirable traits. The world is comprised of both good and bad people, regardless of their circumstances. To navigate through these complexities, self-awareness becomes crucial. It's essential to reflect on our actions and attitudes, gaining a deeper understanding of what drives us. With this self-awareness, we can experience a transformative moment of realization—an "off shift" that prompts us to break free from unproductive patterns. For example, if we find ourselves consistently exhausted on Mondays due to excessive partying, we must recognize that such behavior hinders our progress. Burning the candle at both ends only prevents us from reaching our desired destination.

[10:05] What was your awakening?

From a very young age, I felt a sense of being different. Even as a three or four-year-old, I resisted napping during naptime, often getting into trouble. I constantly felt misunderstood, and the reasons behind this were unclear to me. It was at that tender age that I realized the value of time. I understood that time is limited and must be utilized wisely to achieve our goals. It may have seemed unusual for a five-year-old to contemplate such thoughts, but they shaped my perspective. Growing up in a divorced family exposed me to the tremendous pressure that money can impose on people's lives. I observed how money could make individuals miserable, and it motivated me to learn how to navigate the world of finance. At a young age, I devised creative ways to generate income. For instance, I would collect golf balls on the golf course, clean them, and sell them to golfers. I constantly sought alternative avenues to build skills and acquire financial resources. It struck me as peculiar that many people struggle with the fundamental question of how to obtain money. Indeed, the pursuit of money can be an interesting and challenging endeavor for individuals. It requires resourcefulness, learning, and the ability to think outside conventional boundaries.

[12:00] What does money mean to you?

For me, it's all about freedom. It's the freedom to be present in the moment, like right now, when engaging in this podcast. I didn't have to seek permission or wait for someone else's approval—I simply booked it. If I want to go home and spend quality time with my wife, preparing a delicious dinner together, I have the flexibility to do so. That's the power of money—it buys back our time, enabling us to pursue the activities that truly matter to us.
To me, it's not about accumulating vast sums of money in the bank. Instead, I aspire to build assets. Assets that generate passive income and provide ongoing financial security. This way, I can continue enjoying the freedom to make choices and pursue my passions, knowing that my financial well-being is taken care of.

[13:33] What was the journey you went through to get to this point?

My journey from corporate employment to owning my own company was far from straightforward. It involved numerous challenges and obstacles that shaped my path. Rather than making an abrupt transition, I approached it with careful consideration and strategic moves.
Recognizing the importance of financial stability, I decided to invest the $40,000 I had saved into an existing company. Although this initial investment provided me with a sense of security, I soon realized that the company I had invested in was not the right fit for me. The toxic work environment and lack of cohesion among the partners taught me valuable lessons on how not to run a company. Witnessing the negative impact it had on individuals who were unhappy and lacked a sense of fulfillment, I knew I had to make a change. I then attempted to form a partnership with someone else, seeking to combine our expertise and create a successful venture. However, I encountered challenges when dealing with individuals who underestimated my knowledge and were unwilling to compensate me fairly for my contributions. This situation persisted for six months until January 2020, when the COVID-19 pandemic hit, leaving me without a job or a stable source of income. Faced with the prospect of failure, I made a pivotal decision. I realized that if I were to fail, I would rather fail on my terms. With nothing to lose, I embraced the opportunity to create something of my own. It was during this critical moment that 369 Financial was born, representing a new chapter in my entrepreneurial journey.

[24:10] What was your experience with your first client?

It all started quite unexpectedly. One evening, while having dinner with a friend and his family, the topic of money came up, and they casually mentioned that they needed help managing their finances. Intrigued by the opportunity, I hesitantly offered my assistance, knowing deep down that I still had much to learn. And just like that, I had my very first client—a familiar face who entrusted me with their financial affairs. Unlike some who rely solely on their network of friends and family for business, I never actively pursued them to invest with me. I understood the importance of earning clients based on merit and the value I could provide. Handouts and favors might bring short-term gains, but they don't foster genuine trust and long-term partnerships. Instead, I focused on showcasing my expertise, building my reputation, and delivering exceptional value to attract clients who genuinely saw the benefits of working with me.
It has been a slow and arduous process, as establishing oneself in the financial industry requires time, perseverance, and a relentless commitment to proving oneself. I have resisted the temptation to take shortcuts or rely on empty promises. Instead, I have dedicated myself to demonstrating my worth through hard work, transparency, and a client-centric approach.

[33:35] How does somebody make the wisest decision for their time, not just their finances, if they're leaving a career or job?

When embarking on the journey of shaping your life, it's crucial to take a long, honest look in the mirror and envision what you truly desire. What kind of life do you want to create for yourself? Identifying your unique skill set, the special talents and abilities that set you apart from others will be your greatest asset and differentiator. It's that distinctive quality that will propel you forward on the path to success. Acquiring an existing business, one that already has a functioning infrastructure and a team of employees can be an enticing option. Perhaps the current owner is ready to retire or wishes to explore other life pursuits. These opportunities exist in various forms, allowing you to find a business that aligns with your values and ambitions.
However, it's essential to reflect on what truly matters to you. What are your priorities? While I find immense joy and fulfillment in my work and dedicate myself to it wholeheartedly, it's crucial to strike a balance that works for you. Consider the level of commitment you are comfortable with, ensuring that you don't merely transition from one form of servitude to another.

[34:38] How do people set themselves up for financial success?

Building a financial foundation is crucial when considering purchasing a business. It's important to have sufficient savings to cover initial costs and ensure a smooth transition. However, if you don't have all the necessary funds, exploring financing options becomes essential. Contrary to the common notion that all debt is harmful, borrowing money to acquire a business can be a wise financial decision. By utilizing financing, you can leverage the cash flow generated by the business to repay the debt, cover employee salaries, and provide for your family's needs. Educating yourself on the intricacies of financing and the steps involved in acquiring a business is vital. Seek guidance from experienced individuals who have gone through the process before and can offer valuable insights. They can help demystify the complexities and guide you through each stage, making it easier to navigate the journey. Just as it is easier to learn a dance from someone skilled in that particular style, having a mentor who has experience in business acquisitions can be immensely beneficial. While some general principles and strategies can be applied, it's important to recognize that every person's situation is unique. What works for one individual may not necessarily work for another.

[39:48] What promise did God make to the world when he created you?

To educate people on the best ways to grow their wealth.

Key Quotes

[10:40-10:45] You have to use your time wisely to help you get to your desired destination.
[42:00-42:04] If you are creative, you will find something that can make you money even in your free time.

How to connect with Josh Krafchick

LinkedIn: https://www.linkedin.com/in/joshua-krafchick
Facebook: https://m.facebook.com/unconventionalmoneyguy
Twitter: https://twitter.com/joshuakrafchick