Drink Your Financial Formula

Drink Your Financial Formula | The Kitti Sisters

069: Drink Your Financial Formula


Welcome back, Cashflow Multipliers we are thrilled you are tuning in today and we are so excited to be back and kick off another week full of content to live your best, most authentic, financially free self. 

I have a question for you Palm, what’s better, to be rich or to be wealthy? 🤔🤔

Ohhh good question. It’s like knowing the difference between someone who can rent a yacht on the Amalfi Coast for a weekend and a person who owns the yacht ⛵. 

Yes! Exactly what I was thinking. Or, even how they interact, right? Rich people are quick to throw down their AmEx to cover an issue, but the wealthy are always looking for sustainable solutions to problems outside a swipe of a card– and empower people through the process. 

To be rich or to be wealthy is not a trick question, but it is important, and we hope you’re asking yourself which one you want to be. It’s easy to say you want to be rich when in reality, you want to be wealthy. You see, wealth isn’t a Ferrari, or a private jet, or a super yacht– wealth is an attitude. 

And hey, we too are guilty of giving into some of life’s more luxurious pleasures, but we don’t obtain them by getting rich, but by creating wealth and having assets pay for them. We feel like we’ve finally learned how to strategically create wealth, and live the lifestyle we deserve.

And that’s our goal for today’s episode– to get you into the mindset of becoming wealthy instead of just becoming rich. If this is your first time with us, be sure to stick around and check out other episodes about topics like this and how to secure your financial future while paying less in taxes through apartment syndication. 

And because we know there is so much information out there in the wonderful world of real estate, we’re keeping you on your toes and ahead of the curve, with episodes of Cashflow Multipliers dropping twice a week. After all, two doses of the Kitti Sisters are better than one! 😉😉

Keep in mind that always consult your professionals before making any investment decisions, and this is advice from your financial BFFs who have been in real estate for over nine years, own over 5,000+ units through apartment investing, and thrived in our real estate business during pandemics, wars, and ludicrous economic cycles. 

We hope no matter what, you find value in what we have to share with you today. Are you ready to get started? Let’s do this and channel our inner Daddy Warbucks to get wealthy. 

Blair Waldorf Style, Chuck Bass Energy 

Let’s start with the fundamentals – what is wealth? If you’ve been following us for a while, you’ve likely heard us say “time is our only true currency”. We are big believers here that you should not trade your time for money. We define success by working in such a way we have optimal free time to enjoy what really matters to us.

Time 🕰 to spend with friends, family, and loved ones. To give back to our community, and make a difference wherever we’re at. Of course, the random trips to Tulum with friends don’t hurt either. That, my friends, is wealth. 

Our idea of wealth means we can explore the world, take a 4-day work week lifestyle, and take our grandparents and fur babies on weekend getaways – all while having our money work for us. 😍😍

Having wealth means having time – your most non-renewable asset. Everyone wants money, but money is just a tool, it’s a way you can obtain wealth but it’s not wealth itself. So, what is wealth itself? 

The best way to describe wealth is through an anecdotal story. ➡️ A chest of 💰 gold or a wallet full of bills is no use to a wrecked sailor alone on a raft. For him, wealth comes in the form of a fishing rod, compass, an outboard motor with gas, and a companion. Do you see what we’re saying? Being rich is lifeless cash, being wealthy is a warm, sustainable asset. 

Now that we have the money myth dispelled and established what wealth is, let’s cut to the chase and discuss the point of how to create it for yourself. 


The quick answer to creating wealth for yourself is knowing and understanding the financial formula which we’re digging into a little deeper today. 

The first principle in the financial formula is optimization – generate wealth while you’re fast asleep. 😴😴 Yup you heard that right – while you’re catching up on your beauty sleep, your money is grinding away working for you. 

When we were growing up, we watched our parents work long hours to provide for us. While they did a good job at always making sure our stomachs were full and there was a roof over our head every night, they were not really present in our lives as much as we wish they could have been. 

Often they would miss these monumental moments in our lives like school open houses, basketball games, and graduations. 

Soon enough we found ourselves in the same hustle culture that plagued our parents. We entered the fashion manufacturing world and when we had an overnight loss of 95% of our income source we decided enough is enough and we entered the real estate world. 

Like most people, we started nice and easy through flipping houses. While the money was great we were still trading our time. A big no-no in the Kitti Kingdom. So we thought “how do we magnify the output, with small input?” AKA how do we get the most while doing the least?

The answer to that question came quickly. We learned that in this life, you have to learn how to magnify output with a small input– and in this case, that’s your sweat equity– AKA effort. 😅😅

And that’s why we 💙 love to help our passive investors generate passive income while leveraging their money to the maximum. This is the type of investment opportunity you want to look for because making money while you sleep, eat, and play with your kids is a beautiful place to be.

One of our heroes in the finance and investment space is a man named Robert Kiyosaki who first made waves in the personal finance arena nearly 25 years ago.  He wrote the little purple 📖 book called Rich Dad, Poor Dad. The book is about two dads (spoiler alert) his real father and the father of his best friend, his rich dad. In the book, he talks about the ways in which both men shaped his thoughts about money and investing.  

This book spoke so deeply to us because it explores the myth that you need to have a high income to be considered rich and explains the difference between working for money and having your money work for you. Something we, and our parents, wish we would have known all those years ago.

And sure, there is no doubt a lot of his wealth is from the book, with a net worth of over $100 million, his number one true secret to wealth is building equity without lifting a hammer – or a paintbrush 🖌️🎨! 

If you can disconnect your income generation from time by investing in an asset class that allows you to do so – you too can create wealth.


The next formula is maximization – accelerating your wealth by applying the 2x growth factor. Making money while you sleep is one thing, that’s where your money is compounded. But you don’t want your money to work at a leisurely pace, you want to be making money in a radically fast way.

Most people go their whole lives working a 9-5 desk job they hate and care nothing about, dealing with problems they’d rather not face, and getting paid wages they’d very much like to change.

Have you ever dreamed of a better life, but gotten stumped when it comes to actually doing something about it? We’re gonna solve this with a math problem. Stick with us here. 

👉 Have you ever heard of the rule of 72?

Well, if you don’t you definitely should as it affects your everyday life, whether you know it or not. If you have a credit card, mortgage, or car payment then you’re familiar with borrowed money and having to pay it back with interest. 

The rule of 72 is a calculator based on how long it takes for your money to double. The formula is simple. It’s the rate of return divided by 72. Let’s say if your money grows at 3% annually, 72 divided by 3 equals 24 years right?

Again, we’re keeping accelerated wealth at the focus here, so Palm if you’re going to radically increase your wealth, you’re going to have to flip the script right? 

Yep!  What if you were to flip the formula and get a 24% rate of return instead? In how many years would it take you to double your money? If we’re thinking backward, it would be 3 years, not 3%. Are you picking up on what we’re saying– wealth has a need for speed and we don’t mind the fast lane over here!

Most people will ask – how did you get 24%?

But that’s the wrong question. The right question is “are there really people out there who get a 24% rate of return?” And our answer to that is 



Our final piece to the wealth mindset formula is systemization. So we have the Freedom Formula #1 and #2 on lock, right? You’re going to create wealth while you’re catching z’s and you’re going to speed up that wealth by implementing the rule of 72– but now you need a hub to bring both together. A big, bad, wealth-generating machine– and it’s gotta be on 24/7.

To create your wealth-generating machine, you’re going to have to enlist some teammates. 😋😋 Some tangible, and some not, but all working together to create a sustainable, generational, life-changing momentum. Those teammates are. 

  • Time and expertise 
  • Good Debt
  • And the IRS 

I feel like you’re about to tell me a riddle. Like “what do time, debt and the IRS have in common?”

Answer 〰️ Leveraging your wealth! Let’s turn to the expert on this, our BFF Warren Buffet who we affectionately call Buffy – The Tax Slayer– get it?! 

Okay yes but no we don’t actually call him that! People are going to think we’re big nerds! 🤓🤓

Well, we kind of are. Our point is this – Warren Buffet does not spend his time creating massive wealth, he’s out there enjoying it. He is able to increase his wealth and achieve bigger results by creating a wealth machine through leveraging a team of experts to create wealth for him. 

Let’s talk about the importance of leveraging someone else’s time and expertise here for a second. Research from Malcolm Gladwell shows that it takes 10,000 hours to achieve true expertise in anything – it’s the magic number. 

Buuuut wealth has a need for speed right? Sometimes we don’t have 10,000 hours laying around to be an expert in just anything. But there is someone out there who is the expert you need. This way, you’re able to compress the timeline. 🤘

In simplified terms, leveraging makes it possible to move a huge load with less effort. 

Yes, absolutely.  Like when you view a construction site and see a mechanical setup, such as a crowbar, lifting huge blocks of cement and wood. Notice how tiny an effort it takes to move anything if there’s big enough leverage. 

Other people’s time and expertise are the crowbars in this case. In our world, the 🏢 apartment syndication world, passive investors leverage the sponsorships team who have their eyes set on a good deal to create their 24/7 wealth-creating machine.

Passive investing through apartment syndication is an amazing way to create wealth without having to do all the work and get alllll the benefits. Have your cake and eat it too? Make it red velvet we’re in!

Vetting the team usually happens at the front end when you do your due diligence in finding people to work with. When we say “due diligence” when it comes to this area of passive investing, we mean to find the people you really connect with. For us, we can tell if their values line up with ours over charcuterie and wine, but for you, it might be different! 

Bottom line, chase after people you’re passionate and excited to work with where your priorities align. And here’s the cool part when you leverage, you get economies of scale. 

Once you’ve done the work one time of vetting the sponsorship team properly, if the team has another deal you don’t have to vet them again you already trust and know they’ve got something that could pique your interest. Once you’ve found your team, you can trust them to create your wealth-generating machine 24/7.

The second part to leverage is good debt. The rule of thumb here is that taking on good debt will help you in the long run to purchase something that will increase in value and add to your financial health. 

What’s an example of “good debt”? Well, you might already have some! A rental property mortgage 🏘️ is a classic example. With a rental property mortgage, you build equity in the rental home, and that can be seen as an investment. And guess what? It’s not your paying down the debt, it’s your tenants!  

If you were to do this by yourself with your own personal money– you could maybe double or triple what you have. But! If you use good debt– which is cheap by the way– we’re talking 4, 5, or even 6%– then the insane multiples become possible. You can do 25X, 100X, 500X, or more. It’s about moving huge amounts of money with less effort. We are lovin’ that leverage. 

And the third lever to all of this is getting the IRS on your side. You know the phrase, nothing is certain in this life but death and taxes. 

Taxes are, inevitably, a part of this life. However, our guess is the first person to say this probably wasn’t investing in real estate.  

Paper loss sounds like a negative, but honestly, it’s nothing but gains. 😆😆 As in, gaining an advantage above other people. Unlike the stock 💹 market where you pay capital gains on profits, multifamily apartment properties let you pay little to no tax on capital gains due to bonus depreciation, which can be sizable.

Imagine this scenario: An investment of $100,000 may yield a $100,000 K-1 paper loss 📜 and can be used to offset like-kind passive gains. That’s a one-to-one ratio between your investment and your paper loss. We don’t mind the ghosting effect when it comes to our tax statements by the time April arrives.  

Alright, so how is everyone feeling? Are we seeing the power wealth creation has over being rich in a ditch? We’re talking generational wealth here, and doing more with money than spending it on the latest YSL bag. 

The financial formula of optimization, maximization, and systemization is an actual math formula that we show in the show notes. Our point is this secret to wealth isn’t really a secret. It’s about choices, mindset shifts, taking the time to learn what’s out there for you, and more importantly, aligning yourself with people who can get you to your financial end goals. Because take it from us, there is way way more.

That’s it for today’s episode. We love hanging out with you guys! If you enjoyed this or learned something, share this with a friend. And don’t forget to check us out online on Instagram @thekittisisters and one out website, thekittisisters.com for even more financial freebies, podcast episodes, and more! 

Talk to you soon, Cashflow Multipliers! 



The Kitti Freedom Club


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Invest with the Kitti Sisters

Fortified with years of experience, fierce passive investors (we ALWAYS in our own deals), and selected high qualities investment opportunities to help build your long term wealth no matter what stage in life you're on. We will show you the ropes, help you build out a powerful, personalizes strategy, and give you masterful, financial freedom focused on living your lifestyle dreams.

We're Palmy ➕ Nancy Kitti 〰️ The Kitti Sisters

A sister duo team obsessed with all things financial freedom, passive income, and apartment investing + apartment syndication, who turned a $2,000 bank account into a nine-figure empire.  Now, we're sharing with you the behind-the-scenes secrets of our wealth building strategy.

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