Associates,

I have a confession to make. Since starting this newsletter in 2024, I've assumed that you have been taught the basics of personal finance and have already implemented the most vital financial disciplines and practices that form your financial foundation. That's why in 2025, we are starting from scratch–going back to the basics. Let's build a foundation.

Newsletter Update: Happy New Year! Friends, in 2024 The Associate Report went from 0 to 78 subscribers with ease. Literally, it happened so fast. Writing this newsletter has been an adventure and has become a deep passion of mine. Thank you for helping make my dreams a reality. If you find this issue at all valuable, please take .03 seconds and share it with 1-3 friends today, and help me break 100 subscribers faster than you can say "New Year's Resolutions."

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Putting Out Your Financial House Fire

If you’ve been paying attention, you know I’m a big fan of the credit game.

With it, you can live like a king with points, miles, free flights, and hotel stays. It can also open doors to traveling the world, funding big projects, and, most importantly, building wealth.

But here is the thing:

If you don't already have a solid financial foundation built, debt will be the demise of your dreams of financial freedom. You will become a debt slave, whether you want to or not.

I’m not being dramatic. It is that serious.

Credit is like a loaded revolver. If you don’t know how to handle it, it can blow up your

Here’s what you need to understand:

If you’re not being a good steward by tracking where every dollar comes from and where it’s going, you have no business messing with credit.

It’s not a shortcut or a magic trick to fix your money problems.

It’s a tool—a powerful one—but only if you know how to use it wisely. Otherwise, you will destroy yourself, even with the best intentions.

If the shoe fits:

If any of these describe you, you have no business getting a credit card right now:

You do not diligently track your income and expenses every single month.
You have a habit of overspending/spending everything you make.
Your income is inconsistent or unreliable.

If even one of these is true, it’s not time to think about credit.

Instead, you need to focus on building a strong financial foundation.

Building Your Financial Foundation: The Solution

Let’s talk about a simple but powerful way to take control of your money that I learned years ago in My #1 Wealth Book Recommendation, True Wealth Formula.

One approach I’ve found incredibly effective is using ratios. It’s simple and keeps you accountable. Here’s how it works: divide your income into clear categories. For example:

10% for giving
10% for wealth building (like investments or savings)
10% for debt repayment
70% for living expenses

If you’re debt-free, you can shift to:

10% for giving
20% for wealth building
70% for living

Here’s the truth: money doesn’t manage itself. You’ve got to be intentional. At the start of every month, it’s important to sit down and make a plan for your income—where it’s coming from, where it will be spent or invested, and how it’s moving you closer to your goals.

Why ratios? Because they remove the guesswork. Every dollar has a job, and you always know exactly where your money is going. As you track your progress, you can make adjustments and see how small, intentional changes start to add up over time. The big picture becomes much clearer, and with clarity comes confidence.

The goal is to live on as little of your income as possible so you can invest more into building assets and long-term financial freedom.

To really see results, I recommend building a weekly habit of reviewing your finances. Set aside time once a week to look at what you’ve spent, update your plan, and reflect on how your actions align with your goals. This simple practice is incredibly effective for staying consistent and intentional.

What happens when you spend less than you planned to? Say you budget $400 for groceries but only spend $300. That leftover $100 is cash flow—money you can redirect toward something more productive, like paying down debt or adding to your investments.

Oh, the power of cash flow. We will discuss this more in this new year (2025).

Jonathan Stogsdill

@jon_stogsdill

Many of us have been taught that "Cash is King" 👑 

To an extent, that is true. 

Few realize this ⬇️ 

Cash Flow is The Emperor of The World of Finance.

8:57 PM • Jan 2, 2025

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Why This Matters More Than Credit

Let me be clear: building credit is important. And it is fun to play the credit game. Having strong credit opens doors for opportunities like buying a house, starting a business, or funding a renovation on a rental property (like I did).

But it’s not more important than having a solid financial foundation. In fact, rushing into credit without healthy habits will compromise your financial stability.

Think of it this way: if your financial life is a house, tracking your income and expenses is the foundation. Credit is the next level—but you can’t build on a shaky foundation.

If you’re not ready for credit yet, that’s okay. Everyone starts somewhere. My recommendation is to take a step back and focus on building those healthy habits first.

Need Help Getting Started?

Remember that budget template you got when you first joined The Associate Report?

It has recently been updated. I simplified it and made it more intuitive.

Additionally, I created a whole new tutorial on how to use it, in which I expound upon the ideas of this newsletter.

Here is the link to the free template:

The Cash Flow Matrix Template

This tool makes it simple to track your income, expenses, and cash flow, so you can build the habits you need to take control of your financial life.

I highly recommend that you download and implement it into your weekly routine as we start Q1 of 2025.

Get your finances in order before this year gets away from you.

Remember: credit is a powerful tool, but only when it’s in the hands of a responsible steward. Build your foundation first. Master the basics. And when the time is right, you’ll be ready to use credit as a tool to build—not destroy—your financial future.

Thanks for reading, and as always, feel free to hit reply if you’ve got questions or thoughts. I’d love to hear from you.

Talk soon,

-Jonathan

P.S.

Here's the link to Your Cashflow Matrix Template again:

CLICK HERE TO PUT OUT YOUR FINANCIAL HOUSE FIRE

I have learned a lot about finances, how to buy my first home, mortgages, savings, and growing my assets. I have also learned a lot about the importance of having a group of men by your side whenever you need them!

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Riley Vernon - Associate Community Member

Put Out Your Financial House Fire: How To Master Your Money