WEBVTT 1 00:00:00.000 --> 00:00:06.400 Real quick, guys, I have a special, special gift for you for being loyal listeners of 2 00:00:06.400 --> 00:00:07.800 the podcast. 3 00:00:07.800 --> 00:00:13.320 Layla and I spent probably an entire quarter putting together our scaling roadmap. 4 00:00:13.320 --> 00:00:18.920 It's breaking scaling into 10 stages and across all eight functions of the business. 5 00:00:18.920 --> 00:00:22.040 You've got marketing, you've got sales, you've got product, you got customer success, 6 00:00:22.040 --> 00:00:26.000 you've got IT, you've got recruiting, you've got HR, you've got finance, and we show the 7 00:00:26.000 --> 00:00:29.480 problems that emerged at every level of scale and how to graduate to the next level. 8 00:00:29.480 --> 00:00:34.600 It's all free and you can get it personalized to you since about 30-ish pages for each 9 00:00:34.600 --> 00:00:35.600 of the stages. 10 00:00:35.600 --> 00:00:39.480 Once you answer the questions, it will tell you exactly where you're at and what you need 11 00:00:39.480 --> 00:00:40.480 to do to grow. 12 00:00:40.480 --> 00:00:44.720 It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the 13 00:00:44.720 --> 00:00:47.600 part that's relevant to you, which will probably be about 90 minutes. 14 00:00:47.600 --> 00:00:51.800 And so if that's at all interesting, you can go to acquisition.com forward slash roadmap, 15 00:00:51.800 --> 00:00:56.040 R-O-A-D-MAM roadmap. 16 00:00:56.040 --> 00:00:59.800 If there's one thing that you get from money rules, is that you'd be switching your metric 17 00:00:59.800 --> 00:01:04.320 towards what am I saving every month rather than what am I making every month? 18 00:01:04.320 --> 00:01:08.640 Because the profit, what you save is the thing that matters, not the top line, and it's 19 00:01:08.640 --> 00:01:09.640 one of the biggest mistakes. 20 00:01:09.640 --> 00:01:12.880 And so your PR, your personal records, should be around your savings amount, now you're 21 00:01:12.880 --> 00:01:13.880 income. 22 00:01:13.880 --> 00:01:17.760 Hey, this is one of the best podcasts that I've made. 23 00:01:17.760 --> 00:01:22.640 It was after multiple years of kind of investing our money, Layla and I got advice from 24 00:01:22.640 --> 00:01:27.120 Mentor to sit down and actually write down what our rules for money were, kind of like 25 00:01:27.120 --> 00:01:28.440 our decision making algorithms. 26 00:01:28.440 --> 00:01:30.520 If this, then that, if this, then that. 27 00:01:30.520 --> 00:01:35.880 And so we wrote down about 42 rules of how we were going to manage money and this podcast 28 00:01:35.880 --> 00:01:36.880 breaks them down. 29 00:01:36.880 --> 00:01:40.160 I had a series of mentors that wrote millionaires and billionaires that I won't name drop because 30 00:01:40.160 --> 00:01:44.760 you would know who they are, recommended that I spend 12 to 18 months documenting all 31 00:01:44.760 --> 00:01:48.960 of my beliefs around money and the artifacts that have been created over the five years 32 00:01:48.960 --> 00:01:50.760 that led to that transaction. 33 00:01:50.760 --> 00:01:56.840 And so what I want to do is share the 42 beliefs that I have around money that helped me 34 00:01:56.840 --> 00:02:01.960 accumulate the material success that I had and hopefully so that you can do. 35 00:02:01.960 --> 00:02:08.160 Number one, he who gives the money has the power, not the one who takes it. 36 00:02:08.160 --> 00:02:12.480 So a lot of times poor people think that they're always trying to get money, I was trying 37 00:02:12.480 --> 00:02:13.800 to get money, trying to get money. 38 00:02:13.800 --> 00:02:17.080 The thing is that the person who gives the money is the one who's in control. 39 00:02:17.080 --> 00:02:19.920 Like if you think about the biggest institutions in the world, where are they banks? 40 00:02:19.920 --> 00:02:20.920 What do they do all day? 41 00:02:20.920 --> 00:02:25.520 They give money and because when you give someone money, you get to dictate the terms of 42 00:02:25.520 --> 00:02:26.520 the agreement. 43 00:02:26.520 --> 00:02:27.520 You actually now own them. 44 00:02:27.520 --> 00:02:31.360 When a customer gives you money, you're the one who now has to deliver, right? 45 00:02:31.360 --> 00:02:33.560 They have control in the relationship. 46 00:02:33.560 --> 00:02:38.600 And so one of the biggest shifts that I had was that having the money, which is why I'm 47 00:02:38.600 --> 00:02:43.720 a buyer, not a seller, in acquisition.com, which is what we do in private equity, like 48 00:02:43.720 --> 00:02:47.160 we have control rather than the person who accepts the money. 49 00:02:47.160 --> 00:02:51.080 No number one, the person who gives the money is in control, not the one who gets it. 50 00:02:51.080 --> 00:02:56.240 Number two, never trade reputation for money because you can get money back, but you 51 00:02:56.240 --> 00:02:58.120 can't get reputation back. 52 00:02:58.120 --> 00:03:01.280 And so if you think about reputation as something that compounds over time, the longer you have 53 00:03:01.280 --> 00:03:05.720 it, the more you build it, the more compounds unto itself, which becomes in and of itself a 54 00:03:05.720 --> 00:03:06.720 competitive advantage. 55 00:03:06.720 --> 00:03:11.320 Like it is your brand, which allows you to do more deals, do bigger deals, do them faster, 56 00:03:11.320 --> 00:03:14.560 get more deal flow to you, deals being whatever that is for you. 57 00:03:14.560 --> 00:03:17.600 So it could be deals in terms of like selling cars, you could be selling houses, it could 58 00:03:17.600 --> 00:03:19.240 be selling companies, right? 59 00:03:19.240 --> 00:03:24.200 The same concept remains, but the moment you lose the rep because you traded it for money 60 00:03:24.200 --> 00:03:27.400 in the short, you lose the long, which means you cut the compounding. 61 00:03:27.400 --> 00:03:30.400 And that's where all of the gains in life come from. 62 00:03:30.400 --> 00:03:38.600 Number three, money loves speed, wealth loves time, poverty loves indecision. 63 00:03:38.600 --> 00:03:42.680 And so a big thing is is like macro micro, micro money loves speed, right? 64 00:03:42.680 --> 00:03:46.000 You want to move quickly, like you want to spawn faster customers, you want to follow up 65 00:03:46.000 --> 00:03:47.600 with your leads, et cetera, right? 66 00:03:47.600 --> 00:03:50.800 But when you think about building wealth, it's not about transacting, it's about letting 67 00:03:50.800 --> 00:03:52.760 that compounding happen. 68 00:03:52.760 --> 00:03:56.320 And that takes time and it takes not interrupting it, which is one of the biggest and hardest 69 00:03:56.320 --> 00:04:00.000 parts of compounding is you have to let it multiply unto itself. 70 00:04:00.000 --> 00:04:06.840 Like the size of the business that creates wealth takes decades, not days to make, right? 71 00:04:06.840 --> 00:04:10.280 But the thing is is that most people never achieve either of those things because they 72 00:04:10.280 --> 00:04:14.720 sit indecision and they continue to stay in indecision until they dig action, which 73 00:04:14.720 --> 00:04:19.000 is why poverty loves the person who cannot decide. 74 00:04:19.000 --> 00:04:22.760 Four, we can always make more money than we need. 75 00:04:22.760 --> 00:04:27.640 And so this is a belief that has served my wife and I really, really well because we look 76 00:04:27.640 --> 00:04:32.440 back on our lives and we've never not been able to eat, not had shelter, and we've continued 77 00:04:32.440 --> 00:04:33.840 to increase our skill set. 78 00:04:33.840 --> 00:04:39.200 And so a lot of times we have this desire or our animal brain wants to make decisions 79 00:04:39.200 --> 00:04:41.880 out of scarcity, out of fear, right? 80 00:04:41.880 --> 00:04:47.560 And if we give into that, then we're not following this, which is like we don't need any of 81 00:04:47.560 --> 00:04:51.800 the money that's coming because we have always had enough. 82 00:04:51.800 --> 00:04:56.680 And so when you can operate from that perspective, then you have less need to make deals to 83 00:04:56.680 --> 00:05:01.480 do things and then you can sit back and have a lot more leverage in the conversation, right? 84 00:05:01.480 --> 00:05:03.200 Because you don't need anything. 85 00:05:03.200 --> 00:05:08.640 And that makes you hard to influence and gives you a lot of power. 86 00:05:08.640 --> 00:05:14.680 Things are made by taking a lot of risk with a little bit of money and fortunes are maintained 87 00:05:14.680 --> 00:05:17.760 by taking a little bit of risk with a lot of money. 88 00:05:17.760 --> 00:05:21.120 And so one of the interesting things that I've seen people do, especially when they start 89 00:05:21.120 --> 00:05:25.280 making money or start having money, is that they think that they need to replicate the 90 00:05:25.280 --> 00:05:26.280 high-risk thing. 91 00:05:26.280 --> 00:05:28.760 Because if you think about fundamentally every business in the beginning, like somebody 92 00:05:28.760 --> 00:05:30.440 who's self-made had nothing. 93 00:05:30.440 --> 00:05:32.960 And so they risked everything in order to make it big. 94 00:05:32.960 --> 00:05:35.240 But the thing is, is when you have nothing, you're not risking a lot, right? 95 00:05:35.240 --> 00:05:36.640 You have basically no downside. 96 00:05:36.640 --> 00:05:39.520 You have nothing to lose, which makes you dangerous, which is one of the biggest advantages 97 00:05:39.520 --> 00:05:41.120 of having nothing. 98 00:05:41.120 --> 00:05:46.120 But if you continue to do that, when you do have something to lose, you can lose your 99 00:05:46.120 --> 00:05:47.120 fortunes. 100 00:05:47.120 --> 00:05:50.320 And no matter how big the number is, anything multiplied by zero is still zero. 101 00:05:50.320 --> 00:05:53.880 And so fortunes are made by taking lots of risk in the beginning, but they are maintained 102 00:05:53.880 --> 00:05:58.120 and slowly grown by taking little bits of risk with lots of money. 103 00:05:58.120 --> 00:06:03.520 And so you have to change the behavior once you have the castle, once you have the empire. 104 00:06:03.520 --> 00:06:07.920 Like money flows where attention goes, and I'll hit on this one real quick, which is that 105 00:06:07.920 --> 00:06:11.160 if you spend time thinking about fashion all day, your attention is going towards buying 106 00:06:11.160 --> 00:06:12.160 clothes. 107 00:06:12.160 --> 00:06:13.160 If you think about cars all day, it's going towards your car. 108 00:06:13.160 --> 00:06:16.080 If you think about your business all day, it should be going towards your business. 109 00:06:16.080 --> 00:06:19.680 And on a micro level within the business, if you have multiple product lines or you have 110 00:06:19.680 --> 00:06:24.040 multiple businesses or hustles, this is why I'm such a big proponent of pick one thing 111 00:06:24.040 --> 00:06:25.400 go all in. 112 00:06:25.400 --> 00:06:26.400 That's it. 113 00:06:26.400 --> 00:06:27.400 One thing all in. 114 00:06:27.400 --> 00:06:29.840 And when you do that, because you only have so much juju. 115 00:06:29.840 --> 00:06:32.440 And so think about it like a magnifying glass. 116 00:06:32.440 --> 00:06:36.200 So if you've got the sun and you're the sun in this instance, right, and you've got 117 00:06:36.200 --> 00:06:39.640 to burn a hole to get through to the next level, right? 118 00:06:39.640 --> 00:06:44.640 If you're a spread across tooth, thin of an area, you never get enough concentrated heat. 119 00:06:44.640 --> 00:06:48.520 But the thing is, is that that sun, when it's concentrated enough, can blast through 120 00:06:48.520 --> 00:06:49.520 any barrier. 121 00:06:49.520 --> 00:06:53.480 But most people have the potential, but they don't have the focus, which is why they can 122 00:06:53.480 --> 00:06:54.960 never break through. 123 00:06:54.960 --> 00:06:57.000 So money flows where attention goes. 124 00:06:57.000 --> 00:07:03.400 Seven, your home life and your business life have to be aligned money wise. 125 00:07:03.400 --> 00:07:07.360 So you can't trying to try to try to grow a business, right? 126 00:07:07.360 --> 00:07:10.520 And like reinvest everything here while you're living a super lavish lifestyle, trying to 127 00:07:10.520 --> 00:07:11.920 flex, right? 128 00:07:11.920 --> 00:07:13.480 Like it has to be aligned. 129 00:07:13.480 --> 00:07:17.360 And so one of the things that we have is that all of our business rules around money are 130 00:07:17.360 --> 00:07:19.440 also our home rules around money. 131 00:07:19.440 --> 00:07:24.960 And so if we don't live with any debt, you don't mean personally, that are for liabilities 132 00:07:24.960 --> 00:07:26.280 within our personal lives. 133 00:07:26.280 --> 00:07:28.000 We do the same thing within our business lives. 134 00:07:28.000 --> 00:07:32.040 And so the values we have and how we treat money inside and outside of the business are 135 00:07:32.040 --> 00:07:33.040 the same. 136 00:07:33.040 --> 00:07:38.640 I see so many people who live like split lives, like they've got wives or spouses that 137 00:07:38.640 --> 00:07:40.040 want to spend like crazy, right? 138 00:07:40.040 --> 00:07:43.520 But then they're trying to do these things in the business or the reverse, right? 139 00:07:43.520 --> 00:07:45.640 And so they have to be in alignment. 140 00:07:45.640 --> 00:07:49.280 Otherwise long term, you create conflict and then that's what breaks things. 141 00:07:49.280 --> 00:07:52.040 Eight, ignore money advice from poor people. 142 00:07:52.040 --> 00:07:55.000 This may sound ridiculous, but let me say it differently. 143 00:07:55.000 --> 00:07:59.800 Ignore money advice from your dad or mom who are poorer than you want to be. 144 00:07:59.800 --> 00:08:04.720 Ignore money advice from your good friends who are poorer than you want to be. 145 00:08:04.720 --> 00:08:10.000 Ignore money advice from people who have smaller dreams for your life than you do. 146 00:08:10.000 --> 00:08:14.920 And so the big thing is just like their opinion does not matter because they have not been 147 00:08:14.920 --> 00:08:19.720 there, which is the lowest level of expertise is having been there, right? 148 00:08:19.720 --> 00:08:23.040 The higher up the expertise is not only have you been there, but have you taken many people 149 00:08:23.040 --> 00:08:25.840 just like you to where you're trying to go, right? 150 00:08:25.840 --> 00:08:27.640 They probably don't have any of those things. 151 00:08:27.640 --> 00:08:30.920 And so what they're really doing is just regurgitating something that they may have heard from 152 00:08:30.920 --> 00:08:35.120 somebody else because they have no context and then you somehow take that as truth. 153 00:08:35.120 --> 00:08:37.840 And so what happens is you have people, it's the blind leading the blind. 154 00:08:37.840 --> 00:08:40.920 You have people who have no idea who are ignorant leading also the ignorant. 155 00:08:40.920 --> 00:08:44.720 So if you want to get out of that situation, you have to stop consuming that information 156 00:08:44.720 --> 00:08:48.160 because it becomes the lens to which you see the world and it's also wrong. 157 00:08:48.160 --> 00:08:52.360 The reason that rich people can lose everything and then recreate it is because they see reality 158 00:08:52.360 --> 00:08:53.480 more accurately. 159 00:08:53.480 --> 00:08:57.560 The reason people can't make money is because they don't see reality the way it actually 160 00:08:57.560 --> 00:09:01.120 is because how is it that somebody else can make a lot of money really quickly and someone 161 00:09:01.120 --> 00:09:02.120 else can't? 162 00:09:02.120 --> 00:09:03.080 They see reality differently. 163 00:09:03.080 --> 00:09:06.760 And so most of life is trying to pull these rocks out of our vision so that we can see 164 00:09:06.760 --> 00:09:07.760 more clearly. 165 00:09:07.760 --> 00:09:09.600 So stop listening to poor people about money. 166 00:09:09.600 --> 00:09:13.080 Nine, it's always easier to buy than to sell. 167 00:09:13.080 --> 00:09:14.080 So think about it. 168 00:09:14.080 --> 00:09:16.400 You want to get into a stock, you want to get into something, you can buy it instantly, 169 00:09:16.400 --> 00:09:17.400 right? 170 00:09:17.400 --> 00:09:19.840 You want to get into a real estate deal, you want to get into a business, whatever. 171 00:09:19.840 --> 00:09:22.600 It's always easier to buy than it is to sell. 172 00:09:22.600 --> 00:09:25.280 And so because of that, you have to be extra careful. 173 00:09:25.280 --> 00:09:29.160 You want to put all the slow on the buy and you want to put all the lubricant on the 174 00:09:29.160 --> 00:09:30.160 sell, right? 175 00:09:30.160 --> 00:09:31.920 In terms of your thinking process. 176 00:09:31.920 --> 00:09:34.680 And so that's where we use discipline. 177 00:09:34.680 --> 00:09:38.680 Ten, money is fickle, money is jealous. 178 00:09:38.680 --> 00:09:41.880 It sticks and goes through the person who pays it the most attention. 179 00:09:41.880 --> 00:09:46.520 And so if you think about this big, big, big macro picture, money comes into the system 180 00:09:46.600 --> 00:09:52.400 but there are these grooves like rain grooves in the ground where it all eventually flows 181 00:09:52.400 --> 00:09:55.240 up to the few people who pay at the most attention, right? 182 00:09:55.240 --> 00:09:59.800 Like someone gets paid, they go by their groceries, the grocery person has to go by from the 183 00:09:59.800 --> 00:10:01.760 supplier, supplier, buy a sip from whatever. 184 00:10:01.760 --> 00:10:05.880 And the economy continues to go but the person who has the access is the one who pays at 185 00:10:05.880 --> 00:10:08.400 the most attention is the one who it sticks to at the end. 186 00:10:08.400 --> 00:10:14.040 Which is why wealth always ends up flowing to the few who pay at the most attention. 187 00:10:14.040 --> 00:10:17.640 Otherwise, everyone else is just a very temporary holder of the money. 188 00:10:17.640 --> 00:10:20.240 They're just taking in one hand, going out the other, one hand going out the other. 189 00:10:20.240 --> 00:10:23.560 And so if you pay the most attention to the money, you're the one who will end up sticking 190 00:10:23.560 --> 00:10:27.080 to it because it always loves the person who pays at the most attention. 191 00:10:27.080 --> 00:10:33.000 Eleven, we stay poor until we've learned all the lessons that poverty has to teach. 192 00:10:33.000 --> 00:10:36.640 And so one of the things is that people stay in poverty but they're not trying to pay 193 00:10:36.640 --> 00:10:40.000 attention to like what lesson do I need to be learning that I'm not? 194 00:10:40.000 --> 00:10:43.440 Like there's a boss right now and it's poverty and you have to beat the boss, you have to 195 00:10:43.480 --> 00:10:45.800 learn the lesson to beat the level, right? 196 00:10:45.800 --> 00:10:48.120 So it might be actually taking action. 197 00:10:48.120 --> 00:10:50.120 That might be part of the lesson that you need to learn. 198 00:10:50.120 --> 00:10:54.200 It might be learning how to save money at a basic level, personal finance, right? 199 00:10:54.200 --> 00:10:57.080 Learning how to make more than you spend, right? 200 00:10:57.080 --> 00:11:00.920 Learning how to increase your skill set so that you can actually provide value to other 201 00:11:00.920 --> 00:11:03.880 people, solving other people's problems. 202 00:11:03.880 --> 00:11:07.080 These are the lessons that we have to learn in poverty to get out of poverty and until 203 00:11:07.080 --> 00:11:09.400 you do that, you don't beat the level. 204 00:11:10.200 --> 00:11:14.440 Twelve, frugality drives innovation, constrain, constrain, constrain. 205 00:11:14.440 --> 00:11:20.080 And so even when you have money, one of the best things to do in my opinion is to constrain 206 00:11:20.080 --> 00:11:26.240 your resources, constrain time because it'll force you to think creatively to solve problems 207 00:11:26.240 --> 00:11:28.960 without using money as the solution, right? 208 00:11:28.960 --> 00:11:33.240 And if you have constraints right now on time and or money, don't see it as a disadvantage 209 00:11:33.240 --> 00:11:36.960 because it's what people who do have money try to get into to solve problems. 210 00:11:36.960 --> 00:11:40.080 So it's actually an advantage and the only thing that's the disadvantage is thinking 211 00:11:40.080 --> 00:11:41.080 it is. 212 00:11:41.080 --> 00:11:44.800 Thirteen, think once before investing, think twice before spending. 213 00:11:44.800 --> 00:11:47.920 So investing is something that you're putting money into that is going to give you a return 214 00:11:47.920 --> 00:11:48.920 of some kind. 215 00:11:48.920 --> 00:11:51.120 It's either going to give you a skill that's going to increase your earning capacity or 216 00:11:51.120 --> 00:11:53.280 it's going to be something that's going to quite literally give you a return in terms 217 00:11:53.280 --> 00:11:56.000 that's going to be yield or worth more in the future, right? 218 00:11:56.000 --> 00:11:58.480 Spending is something that's going to never be worth more in the future and it's going 219 00:11:58.480 --> 00:11:59.480 to be consumed. 220 00:11:59.480 --> 00:12:04.200 And so think twice before you consume the money that you are spending, think once before 221 00:12:04.200 --> 00:12:05.200 investing. 222 00:12:05.200 --> 00:12:08.280 So the idea here is that we want to put the discipline more around the spending than 223 00:12:08.280 --> 00:12:11.600 we do around the investing because most times in general, especially when you're starting 224 00:12:11.600 --> 00:12:17.840 out, the more you invest as a thought process is like you're always investing, some things 225 00:12:17.840 --> 00:12:23.440 will return more than others, but overall you will see compounding returns. 226 00:12:23.440 --> 00:12:26.160 Fourteen, money flows to the person who needs it the least. 227 00:12:26.160 --> 00:12:28.480 And this is one of those unfortunate things about the world, right? 228 00:12:28.480 --> 00:12:29.560 The risk get richer. 229 00:12:29.560 --> 00:12:31.440 The risk get richer because they don't need it. 230 00:12:31.440 --> 00:12:34.280 And because they don't need it, they have leverage. 231 00:12:34.280 --> 00:12:38.840 And so the idea is you have to sell not from your own wallet from the person in front 232 00:12:38.840 --> 00:12:39.840 of you, right? 233 00:12:39.840 --> 00:12:43.320 You have to come to the table with other options. 234 00:12:43.320 --> 00:12:46.840 And so it's the person who needs nothing who's the person who has the most power. 235 00:12:46.840 --> 00:12:49.120 And that's where the money will go. 236 00:12:49.120 --> 00:12:52.000 Fifteen, we make money or money does not make us. 237 00:12:52.000 --> 00:12:55.680 This was a belief that Layla and I had to write down because a lot of times you start 238 00:12:55.680 --> 00:12:57.880 tying yourself worth to your net worth, right? 239 00:12:57.880 --> 00:13:02.080 And so what happens is if you do that, then your net worth itself becomes a liability 240 00:13:02.080 --> 00:13:04.260 to your own self-esteem. 241 00:13:04.260 --> 00:13:08.060 And so I started noticing this within myself was that I started tying myself worth to 242 00:13:08.060 --> 00:13:09.220 my net worth. 243 00:13:09.220 --> 00:13:13.220 And so I had to create a different statement of belief that I had to choose to believe, 244 00:13:13.220 --> 00:13:18.100 which is that it is my ability to make money, which is what creates my value, not the 245 00:13:18.100 --> 00:13:19.100 money itself. 246 00:13:19.100 --> 00:13:20.100 Because the money itself can be taken. 247 00:13:20.100 --> 00:13:23.900 Like, you don't know this, but my family was in the Iranian Revolution and everything 248 00:13:23.900 --> 00:13:24.900 they had was taken. 249 00:13:24.900 --> 00:13:28.660 And so that's why the idea of legacy to me is so silly because all it takes is one government 250 00:13:28.660 --> 00:13:33.980 saying, oh, all that land, all those cars, all those homes, those are ours now. 251 00:13:33.980 --> 00:13:35.260 And that's it. 252 00:13:35.260 --> 00:13:38.820 And so a lot of people have this idea of legacy and permanence that's just an illusion. 253 00:13:38.820 --> 00:13:43.100 And so for that reason, the value is in you, not in the things that you make, which is 254 00:13:43.100 --> 00:13:46.260 why we make our money or money doesn't make us. 255 00:13:46.260 --> 00:13:47.260 Sixteen. 256 00:13:47.260 --> 00:13:51.260 It may be an amazing opportunity, but not our amazing opportunity. 257 00:13:51.260 --> 00:13:54.940 And so I think one of the things that I needed early on was permission to not do things. 258 00:13:54.940 --> 00:13:57.380 Because once you start to learn to take action, because in the beginning, you don't know 259 00:13:57.380 --> 00:13:58.380 how to do anything. 260 00:13:58.380 --> 00:14:00.660 You're analysis paralysis and you just get scared and you're ignorant. 261 00:14:00.660 --> 00:14:01.900 You don't know what you're doing. 262 00:14:01.900 --> 00:14:04.700 And once you get over that, which is the first lesson of poverty, you have to start taking 263 00:14:04.700 --> 00:14:05.700 action, right? 264 00:14:05.700 --> 00:14:10.180 Once you get over that, then the problem is that your yes muscle becomes too flexed, right? 265 00:14:10.180 --> 00:14:11.980 You start saying yes to everything. 266 00:14:11.980 --> 00:14:15.580 And so the idea was to be able to say, it's not that this thing is a bad opportunity. 267 00:14:15.580 --> 00:14:16.580 I recognize it. 268 00:14:16.580 --> 00:14:17.580 It's a great opportunity. 269 00:14:17.580 --> 00:14:18.740 It's just not my great opportunity. 270 00:14:18.740 --> 00:14:22.180 And it also gives you language to tell other people who are trying to present things to 271 00:14:22.180 --> 00:14:23.180 you. 272 00:14:23.180 --> 00:14:24.180 Hey, we should do this thing and we should do this thing together. 273 00:14:24.180 --> 00:14:25.580 You say, dude, I think it's amazing opportunity. 274 00:14:25.580 --> 00:14:27.180 I just don't think it's my amazing opportunity. 275 00:14:27.180 --> 00:14:30.460 And it's gotten me out of so many situations that I know long-term wouldn't have been good 276 00:14:30.460 --> 00:14:31.460 for me. 277 00:14:31.860 --> 00:14:35.100 17, we control the money flow wherever possible. 278 00:14:35.100 --> 00:14:41.100 So if you think about the flow of money, whether you're like people who have a lot of control, 279 00:14:41.100 --> 00:14:42.580 payment processors, right? 280 00:14:42.580 --> 00:14:46.620 Everybody thinks they're amazing until the day you can't process money, right? 281 00:14:46.620 --> 00:14:50.540 And so the idea is the further upstream you can go, the more leveraging control you 282 00:14:50.540 --> 00:14:51.860 have over the money. 283 00:14:51.860 --> 00:14:55.580 And so there's a reason that franchises in general take a percentage of top line. 284 00:14:55.580 --> 00:15:00.740 There's a reason that insurance companies get paid before they put money out, right? 285 00:15:00.740 --> 00:15:03.500 Banks get the money and then they give it back later, right? 286 00:15:03.500 --> 00:15:07.460 So the idea is, who's the person who's furthest upstream in the money? 287 00:15:07.460 --> 00:15:11.180 Those people, churches, God takes 10% of top line, right? 288 00:15:11.180 --> 00:15:13.460 The idea is that the people who, like, they get it. 289 00:15:13.460 --> 00:15:15.060 This is old money, right? 290 00:15:15.060 --> 00:15:16.060 This is why we do this stuff. 291 00:15:16.060 --> 00:15:17.060 This is why we crystallize it. 292 00:15:17.060 --> 00:15:20.820 It's that the person who's furthest upstream in the money has the most power over it. 293 00:15:20.820 --> 00:15:23.020 So whenever possible, control the money flow. 294 00:15:23.020 --> 00:15:25.660 18, always having a shit fund. 295 00:15:25.660 --> 00:15:30.540 One of the things that's given me a tremendous amount of confidence in going out, out 296 00:15:30.540 --> 00:15:34.380 there and risking it is that I've always had this, like, just in case fund. 297 00:15:34.380 --> 00:15:37.580 And that, I don't invest in anything that is risky at all. 298 00:15:37.580 --> 00:15:39.140 So this is just like bonds. 299 00:15:39.140 --> 00:15:41.620 And I know, here's what's crazy. 300 00:15:41.620 --> 00:15:47.820 I know that I'm losing money over time by the fact that this money is rotting. 301 00:15:47.820 --> 00:15:53.620 But the thing is, is that me knowing that I can take whatever risk I want and I am still 302 00:15:53.620 --> 00:15:57.420 protected and everything that I have for the rest of my life is taken care of gives me 303 00:15:57.420 --> 00:16:01.020 a lot of peace, which allows me to be more aggressive, be more offensive. 304 00:16:01.020 --> 00:16:04.580 And so as soon as you can, have your own shit fund, whether it's three months, whether 305 00:16:04.580 --> 00:16:08.900 it's six months, whatever it is, start putting that away that nut so that you can go more 306 00:16:08.900 --> 00:16:12.420 on the offensive because you're not worried about how you're going to eat. 307 00:16:12.420 --> 00:16:17.700 19, the biggest eroder of wealth is ignorance. 308 00:16:17.700 --> 00:16:20.060 The second biggest is taxes. 309 00:16:20.060 --> 00:16:24.740 And so the idea here is that not knowing how to make a million dollars is costing you 310 00:16:24.820 --> 00:16:27.340 whatever you make every year, minus a million dollars. 311 00:16:27.340 --> 00:16:31.260 And so if you make 50 grand a year, it costs you $950,000 a year to not know how to make 312 00:16:31.260 --> 00:16:32.260 a million dollars. 313 00:16:32.260 --> 00:16:37.900 And so the question is, what would I pay to pay down that debt, that ignorance debt, 314 00:16:37.900 --> 00:16:42.140 which is the most expensive thing that everyone pays for every single month right now, whoever 315 00:16:42.140 --> 00:16:47.380 you are, whatever your goal is, you're paying a debt to the ignorance that you have for 316 00:16:47.380 --> 00:16:49.700 not having that income. 317 00:16:49.700 --> 00:16:52.300 Like if you knew how to do it, you would be doing it. 318 00:16:52.300 --> 00:16:55.500 And so for me, that's always been the thing that scared me the most, which was how do 319 00:16:55.500 --> 00:16:59.100 I pay down this debt as fast as possible, which is why I put so much money into paying 320 00:16:59.100 --> 00:17:04.100 down this invisible hand that's been suppressing my income my whole life and yours too. 321 00:17:04.100 --> 00:17:06.540 And the invisible hand is the ignorance. 322 00:17:06.540 --> 00:17:10.460 That is the debt that collects every single month the money that you are not making, right? 323 00:17:10.460 --> 00:17:15.020 And so you have, let's say right now, you could be making a million a month, but the invisible 324 00:17:15.020 --> 00:17:20.900 hand is taking $950,000 every month or if you're making 50 grand a month, whatever it is. 325 00:17:20.900 --> 00:17:25.340 It's taking all of that extra money and putting into his pocket and that's the cost of ignorance. 326 00:17:25.340 --> 00:17:29.220 And so the thing is, is how do we get that hand go away and we get that through knowledge, 327 00:17:29.220 --> 00:17:30.220 right? 328 00:17:30.220 --> 00:17:31.420 We get that through experience, we get that through skills. 329 00:17:31.420 --> 00:17:34.820 And that's what we have to pay for in time or money. 330 00:17:34.820 --> 00:17:35.660 Twenty. 331 00:17:35.660 --> 00:17:41.700 You get paid for the value you create times your ability to negotiate divided by how hard 332 00:17:41.700 --> 00:17:43.620 you are to replace. 333 00:17:43.620 --> 00:17:48.460 So the idea is if you provide something that's very valuable and you're very good at negotiating 334 00:17:48.460 --> 00:17:52.460 but somebody else can provide the exact same thing as you for a tenth of the price, you 335 00:17:52.460 --> 00:17:55.300 still don't have that good of negotiating position, right? 336 00:17:55.300 --> 00:17:58.900 So the idea is how do I provide a huge amount of value, learn to negotiate for as much 337 00:17:58.900 --> 00:18:02.820 of it as possible and do it in such a way that no one else can compete against me. 338 00:18:02.820 --> 00:18:06.420 If you can do those three things, that is how you create value, that is how you make money. 339 00:18:06.420 --> 00:18:09.540 And it's really making money is capturing a percentage of the value that you create for 340 00:18:09.540 --> 00:18:10.540 other people. 341 00:18:10.540 --> 00:18:11.540 That is what making money is. 342 00:18:11.540 --> 00:18:12.900 You're solving someone else's problem. 343 00:18:12.900 --> 00:18:16.780 The value of that problem can be quantified and the percentage of that value that you capture 344 00:18:16.780 --> 00:18:19.540 is how you make money in exchange. 345 00:18:19.540 --> 00:18:24.060 So if you don't know how to provide value and you don't know how to negotiate and everyone 346 00:18:24.060 --> 00:18:26.860 can do it and you can do the same thing as everybody else and nothing unique, then you 347 00:18:26.860 --> 00:18:28.060 want a hard time making money. 348 00:18:28.060 --> 00:18:30.900 So reverse those things and that's how you make it. 349 00:18:30.900 --> 00:18:35.620 Aimosonation, quick break just to let you know that we've been starting to post on LinkedIn 350 00:18:35.620 --> 00:18:37.060 and want to connect with you. 351 00:18:37.060 --> 00:18:39.860 All right, so send me a connection request and note letting me know that you listen to 352 00:18:39.860 --> 00:18:41.620 the show and I will accept it. 353 00:18:41.620 --> 00:18:44.780 There's anyone you think that we should be connected with, tag them in one of my or 354 00:18:44.780 --> 00:18:47.860 laylist posts and I will give you all the love in the world. 355 00:18:47.860 --> 00:18:48.860 All right. 356 00:18:48.860 --> 00:18:50.860 So let's get back to the show. 357 00:18:50.860 --> 00:18:55.060 21, mistakes love a rush decision. 358 00:18:55.060 --> 00:19:00.860 So whenever we feel like we have FOMO, right, whenever you, like I train myself now enough 359 00:19:00.860 --> 00:19:04.740 that like when I feel FOMO, I pause. 360 00:19:04.740 --> 00:19:08.820 FOMO means slow go, it means give it a pause, right? 361 00:19:08.820 --> 00:19:12.940 And the reason for that is that most irrational decisions, mistakes loved a rush decision. 362 00:19:12.940 --> 00:19:15.400 Is that I always think about that over and over and it's like, hey, this is probably 363 00:19:15.400 --> 00:19:17.660 a mistake because mistakes love rush decisions. 364 00:19:17.660 --> 00:19:19.860 And so it's like, well, then let's just give it a cool down period. 365 00:19:19.860 --> 00:19:24.420 And so it's just one of those easy beliefs that has slowed me down and has saved me so 366 00:19:24.420 --> 00:19:27.620 much money for mistakes. 367 00:19:27.620 --> 00:19:33.180 It's hard even like millions and millions of dollars in money and failed and brand deals 368 00:19:33.180 --> 00:19:38.500 and reputational deals that I didn't do because I was like, I don't know, I'm going to give 369 00:19:38.500 --> 00:19:41.980 this one a cool down period and see how I look at it in 30 days. 370 00:19:41.980 --> 00:19:44.980 And 30 days later, I'm very glad I didn't do it. 371 00:19:44.980 --> 00:19:48.780 22, leverage comes from not needing the other person. 372 00:19:48.780 --> 00:19:51.420 And more specifically, leverage comes from needing nothing. 373 00:19:51.420 --> 00:19:55.220 And so the idea is you can either satisfy all your needs or you can eliminate all your 374 00:19:55.220 --> 00:19:56.540 needs. 375 00:19:56.540 --> 00:19:58.860 Either way, that is how you create leverage. 376 00:19:58.860 --> 00:19:59.860 Think about this. 377 00:19:59.860 --> 00:20:03.660 You can't control somebody who needs nothing, right? 378 00:20:03.660 --> 00:20:04.660 Someone needs nothing. 379 00:20:04.660 --> 00:20:05.900 You have no influence over them. 380 00:20:05.900 --> 00:20:07.540 And so the goal is, how do I become that person? 381 00:20:07.540 --> 00:20:11.580 I can either become that person by satisfying every need I have materially or by decreasing 382 00:20:11.580 --> 00:20:13.540 my needs to zero. 383 00:20:13.540 --> 00:20:14.700 Either way, you can do it. 384 00:20:14.700 --> 00:20:18.020 The monks do it by giving, relinquishing everything and needing nothing. 385 00:20:18.020 --> 00:20:21.780 And the rich man does it by satisfying all his needs and not needing the other deal 386 00:20:21.780 --> 00:20:23.660 and the other side of the table, right? 387 00:20:23.660 --> 00:20:28.420 And so by doing that, in both of those situations, you create leverage because you can get more 388 00:20:28.420 --> 00:20:30.620 because you don't need it. 389 00:20:30.620 --> 00:20:36.060 23, markets take longer to adjust than you expect and then they move faster than you 390 00:20:36.060 --> 00:20:37.060 can imagine. 391 00:20:37.060 --> 00:20:39.900 And so this is one of those things where like the big short, if you saw that movie, the 392 00:20:39.900 --> 00:20:43.540 guy was shorting for like four years and he's like, the math doesn't make sense, but 393 00:20:43.540 --> 00:20:49.020 it's still the bubble kept going, bubble kept going, bubble kept going and then it happened 394 00:20:49.020 --> 00:20:50.340 faster than people imagined. 395 00:20:50.340 --> 00:20:54.460 So when there are corrections and there's something that feels fundamentally off, it takes 396 00:20:54.460 --> 00:20:58.980 longer for a market to adjust and then when it does make the adjustment, it happens very 397 00:20:58.980 --> 00:20:59.980 fast. 398 00:20:59.980 --> 00:21:02.460 And so the idea is that we have to be comfortable with the fact that we might have to sit 399 00:21:02.460 --> 00:21:07.020 in discomfort for an extended period of time before what we believe to be reality is 400 00:21:07.020 --> 00:21:08.020 reflected. 401 00:21:08.500 --> 00:21:10.860 24, money is a game, treated as such. 402 00:21:10.860 --> 00:21:13.860 You can't win the game if you don't know you're playing one. 403 00:21:13.860 --> 00:21:18.620 And so one of the things is that the wealthiest people in the world see money as a game, right? 404 00:21:18.620 --> 00:21:22.460 They're just trading tokens at this point because they don't even use money to satisfy 405 00:21:22.460 --> 00:21:24.260 material needs because they already have it. 406 00:21:24.260 --> 00:21:29.660 And so the idea is how can I adopt that perspective as soon as I can't early or on in my career? 407 00:21:29.660 --> 00:21:34.780 And so that's where thinking about things in terms of personal bests, right? 408 00:21:34.780 --> 00:21:39.300 Thinking about in terms of bank account PRs, thinking about your PRs being how much you 409 00:21:39.300 --> 00:21:42.780 save every month rather than what you make every month, right? 410 00:21:42.780 --> 00:21:46.100 Checking your stats every morning like you would a video game, checking your rankings against 411 00:21:46.100 --> 00:21:47.100 yourself. 412 00:21:47.100 --> 00:21:48.700 Like these are the things that the people who have more money. 413 00:21:48.700 --> 00:21:52.660 Like when I was poor, I checked my bank out every single day and I continue to check 414 00:21:52.660 --> 00:21:55.660 it every day until we passed about $20 million in no worth and then I started switching 415 00:21:55.660 --> 00:22:00.340 weekly because honestly the variations made it made no sense to check it daily. 416 00:22:00.340 --> 00:22:03.300 But the idea there is that what gets measured gets improved. 417 00:22:03.300 --> 00:22:06.500 You can get someone to lose weight just by simply getting them to weigh themselves every 418 00:22:06.500 --> 00:22:09.860 day without giving them any advice at all, just weighing themselves, drawing attention. 419 00:22:09.860 --> 00:22:11.700 Remember, money flows for attention goes. 420 00:22:11.700 --> 00:22:14.900 So if you pay attention to it, it will start sticking to you. 421 00:22:14.900 --> 00:22:17.860 25, don't bet the empire for a pot of gold. 422 00:22:17.860 --> 00:22:21.380 And so the idea here is like no matter how big the number is, and this is a Warren Buffett 423 00:22:21.380 --> 00:22:24.060 quote, no matter how big the number is anything multiplied by zero is still zero. 424 00:22:24.060 --> 00:22:29.020 And so even though you might have this opportunity here, it's never worth risking the whole pie 425 00:22:29.020 --> 00:22:30.020 to get the pot of gold. 426 00:22:30.020 --> 00:22:32.620 It might be this tiny opportunity but it's not worth the risk. 427 00:22:32.620 --> 00:22:35.180 And I can't tell you the amount of times where I'm like, man, if I went all in on this 428 00:22:35.180 --> 00:22:36.900 thing, money wise. 429 00:22:36.900 --> 00:22:40.220 So the thing is like, you can go all in on your attention, right, but I wouldn't go all 430 00:22:40.220 --> 00:22:44.620 in on your money, right, just a different perspective unless you absolutely know what you're 431 00:22:44.620 --> 00:22:45.620 doing. 432 00:22:45.620 --> 00:22:48.380 26, always do a starter deal with new faces. 433 00:22:48.380 --> 00:22:51.780 So this is a hard one because one of your friends comes to you and it's like, dude, I want 434 00:22:51.780 --> 00:22:55.020 to do this Airbnb thing or hey, I've got this portfolio of whatever. 435 00:22:55.020 --> 00:22:56.580 Like you should invest, right? 436 00:22:56.580 --> 00:22:59.500 If you've never done a deal with somebody, accept the fact that you're going to miss out 437 00:22:59.500 --> 00:23:01.700 on the first deal and you do a starter deal first. 438 00:23:01.860 --> 00:23:02.700 All right. 439 00:23:02.700 --> 00:23:03.700 It's training wheels. 440 00:23:03.700 --> 00:23:05.740 You got to see how these people are, right now. 441 00:23:05.740 --> 00:23:07.060 Everything's just still a great on paper. 442 00:23:07.060 --> 00:23:08.060 Everything's just still makes sense. 443 00:23:08.060 --> 00:23:09.500 They should still be amazing characters, etc. 444 00:23:09.500 --> 00:23:14.300 Once they check all the boxes, you still mitigate your risk by saying, first deal I'm going 445 00:23:14.300 --> 00:23:16.340 to do with you is a small deal, right? 446 00:23:16.340 --> 00:23:19.180 And so mind you, people come to us for very big checks. 447 00:23:19.180 --> 00:23:25.540 And so I say, hey, I'm not going to write you a checkable above X percent until we've 448 00:23:25.540 --> 00:23:28.380 already done a deal, which if you're thinking about that, you might be like, well, it might 449 00:23:28.380 --> 00:23:30.620 take five years for a deal to materialize. 450 00:23:30.740 --> 00:23:31.740 Yeah. 451 00:23:31.740 --> 00:23:36.180 Which is why investing is a long-term game, which is why trust is built over time, right? 452 00:23:36.180 --> 00:23:39.860 And so the idea is like, that means that you might have to get several first time deals 453 00:23:39.860 --> 00:23:42.740 done, which is also good because they'll diversify your risk in the beginning. 454 00:23:42.740 --> 00:23:46.580 And you will find out, I promise you, when you do get a partner that you were really excited 455 00:23:46.580 --> 00:23:49.860 about and then you hand them the check and then a year later, like, thank God I didn't 456 00:23:49.860 --> 00:23:52.420 give this guy the whole farm, right? 457 00:23:52.420 --> 00:23:55.780 And so this is one of those, this is a downside mitigator because most people who are 458 00:23:55.780 --> 00:23:59.580 rich think about not having risk rather than risking it all. 459 00:23:59.580 --> 00:24:03.380 Remember, fortunes are built by taking a lot of risk, a little bit of money, fortunes 460 00:24:03.380 --> 00:24:04.380 are maintaining grown. 461 00:24:04.380 --> 00:24:06.380 They're taking a little bit of risk with bottom. 462 00:24:06.380 --> 00:24:09.540 And you can only take a little bit of risk with somebody that you already know, right? 463 00:24:09.540 --> 00:24:12.540 Which is why it started deals with new faces. 464 00:24:12.540 --> 00:24:13.540 27. 465 00:24:13.540 --> 00:24:15.940 Trust is worth more than a bigger return. 466 00:24:15.940 --> 00:24:18.420 Trust lubricates deal velocity. 467 00:24:18.420 --> 00:24:19.420 Trust compounds. 468 00:24:19.420 --> 00:24:23.100 And so one of the most valuable things you can have, especially in investing in yourself, 469 00:24:23.220 --> 00:24:26.340 is trusted partners, right? 470 00:24:26.340 --> 00:24:29.380 And so it's one of those things where like, you don't want to take all the meat on the 471 00:24:29.380 --> 00:24:32.820 bone because you want to have a long-term relationship, right? 472 00:24:32.820 --> 00:24:38.540 And if you have the opportunity to want over somebody two years in and you've had multiple 473 00:24:38.540 --> 00:24:43.660 good deals with somebody, that is one where you lose on the compounding benefit of trust. 474 00:24:43.660 --> 00:24:48.180 And you will make so much more over the relationship by maintaining it and by maintaining trust 475 00:24:48.180 --> 00:24:50.100 on both sides, making it always work. 476 00:24:50.100 --> 00:24:54.260 I can tell you, when I talk to partners, when I talk to business owners, how they talk 477 00:24:54.260 --> 00:24:58.100 about the people that they do business with, tells you a lot about them and how they do 478 00:24:58.100 --> 00:24:59.140 business. 479 00:24:59.140 --> 00:25:01.500 And so when I talk to somebody and I'm like, hey, why don't you do this? 480 00:25:01.500 --> 00:25:04.580 They're like, hey, these guys have been good to us for a very long time. 481 00:25:04.580 --> 00:25:05.900 Like I don't want to rock that boat. 482 00:25:05.900 --> 00:25:08.740 Like we've had a very good relationship for 10 years. 483 00:25:08.740 --> 00:25:10.260 That is something I respect a lot. 484 00:25:10.260 --> 00:25:12.860 And that is what people who have money act like. 485 00:25:12.860 --> 00:25:16.100 Poor people are always trying to one over everyone, over and over again, and they never 486 00:25:16.100 --> 00:25:20.100 get any trust from anybody, which means they have no compounding relationships. 487 00:25:20.100 --> 00:25:21.340 And so they always have to hunt. 488 00:25:21.340 --> 00:25:23.060 They always have to find the next thing. 489 00:25:23.060 --> 00:25:26.460 Rather than they have a network of people who are always feeding them deals, always giving 490 00:25:26.460 --> 00:25:30.940 them slices of other pieces of pie because they weren't greedy early. 491 00:25:30.940 --> 00:25:31.940 28. 492 00:25:31.940 --> 00:25:33.500 Money is not a zero sum game. 493 00:25:33.500 --> 00:25:37.500 And so one of the things, again, when you're poor, you think that if I either get this money, 494 00:25:37.500 --> 00:25:38.500 I got to take this money. 495 00:25:38.500 --> 00:25:40.180 It's like there's this certain pot of money. 496 00:25:40.180 --> 00:25:43.460 But the money supply itself is fluid, it grows, right? 497 00:25:43.460 --> 00:25:48.580 Money is created, quite literally, printed, but also in that you can create a deal where 498 00:25:48.580 --> 00:25:50.020 multiple people win. 499 00:25:50.020 --> 00:25:51.700 And this was something that I didn't understand earlier on. 500 00:25:51.700 --> 00:25:55.140 I always thought like, it's a zero sum, like they've got money and I have to take it 501 00:25:55.140 --> 00:25:56.140 somehow, right? 502 00:25:56.140 --> 00:25:57.820 I have to exchange something for it, whatever it is, right? 503 00:25:57.820 --> 00:26:00.300 I have to somehow get them to exchange with me. 504 00:26:00.300 --> 00:26:04.380 But the older I've gotten, the more I'm like, how can I get onto their side of the table 505 00:26:04.380 --> 00:26:06.060 and both make money together? 506 00:26:06.060 --> 00:26:10.340 And so I have made significantly more money getting on the same side of the table as 507 00:26:10.340 --> 00:26:15.140 the other person saying, why don't we both take a big piece of this upside rather than 508 00:26:15.140 --> 00:26:18.220 trying to take slice up a pie that's in front of us, right? 509 00:26:18.220 --> 00:26:20.940 So it's focusing on the future pie rather than the pie that's in front of you, right? 510 00:26:20.940 --> 00:26:24.820 It's creating value rather than slicing and dividing value. 511 00:26:24.820 --> 00:26:28.180 29, never take a standard deal, there's always a better one. 512 00:26:28.180 --> 00:26:31.860 And so one of the things here is that like there's always a better deal and a lot of times 513 00:26:31.860 --> 00:26:35.220 you just have to ask for it, which is like, hey, this term and this term and this term 514 00:26:35.220 --> 00:26:37.860 are things that are concerning to me, is there anything we can do about these? 515 00:26:37.860 --> 00:26:38.860 Because it may influence. 516 00:26:38.900 --> 00:26:42.260 The big thing here, remember earlier, leverage comes from not needing the deal. 517 00:26:42.260 --> 00:26:43.740 You have to be willing to walk away. 518 00:26:43.740 --> 00:26:46.180 Like I can't say this more than I'm saying this right now. 519 00:26:46.180 --> 00:26:50.460 If you need a deal, you have no leverage and you're basically faking. 520 00:26:50.460 --> 00:26:54.860 The only way to actually get better deals is to not need deals. 521 00:26:54.860 --> 00:26:57.980 And the only way to get better deals when you don't need deals is to ask for better 522 00:26:57.980 --> 00:27:00.860 deals and be willing to walk away when they say no. 523 00:27:00.860 --> 00:27:04.340 And I can't tell you the amount of times that I've walked away from a deal and the person 524 00:27:04.340 --> 00:27:07.420 comes back after saying, well, I can't do a deal and I'm like, cool, no worries. 525 00:27:07.420 --> 00:27:09.960 They come back three or four days later and they're like, all right, man, I'll do the 526 00:27:09.960 --> 00:27:10.960 deal. 527 00:27:10.960 --> 00:27:11.960 Right? 528 00:27:11.960 --> 00:27:14.980 And then I might be like, hey, well, the terms have changed, you know, I'm kidding. 529 00:27:14.980 --> 00:27:15.980 But you get the idea, right? 530 00:27:15.980 --> 00:27:20.360 Is that one, don't accept standard deals, two, the only way you cannot accept standard 531 00:27:20.360 --> 00:27:23.060 deals is have other deals and have leverage. 532 00:27:23.060 --> 00:27:27.860 Step three, you have to ask for it and be willing to walk away when they say no. 533 00:27:27.860 --> 00:27:30.860 Thirty, expect low risk, amazing returns. 534 00:27:30.860 --> 00:27:33.860 So one of the things that I found about with the wealthiest friends that I have who are 535 00:27:33.860 --> 00:27:40.500 a billionaire plus is that they're just not interested in 10, 20% returns. 536 00:27:40.500 --> 00:27:45.500 They're looking for 50% plus annualized returns because they're like, well, I figure 537 00:27:45.500 --> 00:27:47.500 if I'm wrong, I'm not going to get that. 538 00:27:47.500 --> 00:27:49.020 And if I'm right, then I crush it. 539 00:27:49.020 --> 00:27:51.940 They're like, if I shoot for 10, if I'm wrong, I'm way below 10. 540 00:27:51.940 --> 00:27:55.660 And that made a ton of sense to me and it's just like, it's an expectation of the world. 541 00:27:55.660 --> 00:27:59.160 It's like, well, when I invest, I just expect that this is going to be the new average. 542 00:27:59.160 --> 00:28:01.540 Most people expect 10% because that's what the S&P does. 543 00:28:01.540 --> 00:28:04.540 It doesn't mean that that has to be your personal standard, right? 544 00:28:04.540 --> 00:28:08.820 And so thinking through that way has changed how I saw investing in general. 545 00:28:08.820 --> 00:28:12.860 Thirty one, don't think in IRR, which means internal rate of return. 546 00:28:12.860 --> 00:28:15.500 Instead, thinking how long will this take to double? 547 00:28:15.500 --> 00:28:16.820 How long will this take to triple? 548 00:28:16.820 --> 00:28:22.180 So for example, if you're like, hey, I want to have a 25% IRR, it's hard to say this 549 00:28:22.180 --> 00:28:24.340 is going to grow by 25% a year. 550 00:28:24.340 --> 00:28:27.980 What is easier to say is this is going to double in three. 551 00:28:27.980 --> 00:28:31.740 And so the question is, what can I get today that's half off what it's going to be in 552 00:28:31.740 --> 00:28:32.740 three years? 553 00:28:32.740 --> 00:28:37.340 Is it a much easier question to solve than what do I think is going to grow by 25% three 554 00:28:37.340 --> 00:28:38.340 times? 555 00:28:38.340 --> 00:28:39.340 Does that make sense? 556 00:28:39.340 --> 00:28:43.380 And so changing how you ask the question changes how you'll find the answer. 557 00:28:43.380 --> 00:28:48.340 Thirty two, this is a buffetism, but diversification is a hedge against ignorance, right? 558 00:28:48.340 --> 00:28:50.580 And it's only risky if you don't know what you're doing. 559 00:28:50.580 --> 00:28:53.020 And the converse of that is that the people who make the most money know what they're 560 00:28:53.020 --> 00:28:54.020 doing. 561 00:28:54.020 --> 00:28:55.940 And so there's two ways of knowing what you're doing. 562 00:28:55.940 --> 00:28:59.540 You know, everything only know a few things and then only do those things, right? 563 00:28:59.540 --> 00:29:02.700 And that's with the wealthiest people that I have seen and witnessed myself. 564 00:29:02.700 --> 00:29:06.620 The games that they play, you know, I've got, I've got buddies who only do hard money 565 00:29:06.620 --> 00:29:07.620 lending, right? 566 00:29:07.620 --> 00:29:08.620 That's all they do. 567 00:29:08.620 --> 00:29:09.620 And they do shit loads of it, right? 568 00:29:09.620 --> 00:29:12.900 I've got people who I know who just do like market making, which is like basically providing 569 00:29:12.900 --> 00:29:15.780 liquidity to buyers and sellers to make markets work, right? 570 00:29:15.780 --> 00:29:16.780 That's all they do. 571 00:29:16.780 --> 00:29:20.220 I've got friends who only flip houses, I've got friends who only buy commercial. 572 00:29:20.220 --> 00:29:24.380 I've only like, there's a million games and all of them make tons of money. 573 00:29:24.380 --> 00:29:27.780 And so it's really about taking one game and taking it to its natural conclusion, which 574 00:29:27.780 --> 00:29:31.740 is learning every single aspect of that game rather than saying, I want to be in stocks. 575 00:29:31.740 --> 00:29:32.740 I want to be in real estate. 576 00:29:32.740 --> 00:29:33.740 I want to be in crypto. 577 00:29:33.740 --> 00:29:34.740 I want to also have my side hustles. 578 00:29:34.740 --> 00:29:37.500 I want to, like, you can't get good at any of them because you're competing against 579 00:29:37.500 --> 00:29:39.540 people who are all in. 580 00:29:39.540 --> 00:29:40.540 That's the thing. 581 00:29:40.540 --> 00:29:44.380 Like, if you're in stocks, you're competing against hedge fund managers, it's all they 582 00:29:44.380 --> 00:29:46.420 do, right? 583 00:29:46.420 --> 00:29:49.340 And so play one game and play it well. 584 00:29:49.340 --> 00:29:54.060 34, I skipped 33 because I covered it in the last one. 585 00:29:54.060 --> 00:29:55.860 Turns are in the terms, right? 586 00:29:55.860 --> 00:29:59.860 So you probably heard the saying, it's either your price and my terms or my, my terms and 587 00:29:59.860 --> 00:30:01.100 your price, right? 588 00:30:01.100 --> 00:30:03.380 And so, or if I said that wrong, you know what I'm saying? 589 00:30:03.380 --> 00:30:07.140 The idea here is, in my opinion, terms are far more powerful. 590 00:30:07.140 --> 00:30:10.340 Like, I could say, hey, man, I'm going to pay you a billion dollars for your company, 591 00:30:10.340 --> 00:30:11.340 right? 592 00:30:11.340 --> 00:30:13.700 Like, whatever you, everybody who's watching this, if you make money doing anything 593 00:30:13.700 --> 00:30:17.040 that's a side hustle, I'll pay you a billion dollars for your business, but it's on my 594 00:30:17.040 --> 00:30:18.540 terms, right? 595 00:30:18.540 --> 00:30:20.940 And I can make, and I can make that deal every time I'm in Los Angeles. 596 00:30:21.420 --> 00:30:24.740 And so that's the thing is, it's like, the returns are in the terms, it's in the fine 597 00:30:24.740 --> 00:30:25.740 print, right? 598 00:30:25.740 --> 00:30:29.660 And so understanding the terms of the agreement and how many different ways you can make 599 00:30:29.660 --> 00:30:30.660 terms. 600 00:30:30.660 --> 00:30:32.820 And the only way you do that is through having the conversations and trying to structure 601 00:30:32.820 --> 00:30:35.180 it from learning from other people, right? 602 00:30:35.180 --> 00:30:40.020 And so you have to be careful of the terms, but be, understand how you can use those things 603 00:30:40.020 --> 00:30:42.860 to your advantage, give an example there. 604 00:30:42.860 --> 00:30:46.000 So if I bought your business for a billion dollars, I would say, sure, I'll give you 605 00:30:46.000 --> 00:30:49.220 a billion dollars, I'll give you a billion dollars in cash, but I'll give it to you over 606 00:30:49.300 --> 00:30:50.220 five years. 607 00:30:50.220 --> 00:30:54.060 And the only terms that I'll give it under is that it's already doing 500 million a 608 00:30:54.060 --> 00:30:57.260 year in in income, and it's not doing that today. 609 00:30:57.260 --> 00:31:01.460 But I will happily give you a billion dollars over five years if it makes 500 million dollars 610 00:31:01.460 --> 00:31:02.540 in profit next year. 611 00:31:02.540 --> 00:31:03.860 It's not doing that today. 612 00:31:03.860 --> 00:31:06.700 So on paper, I bought your company for a billion dollars. 613 00:31:06.700 --> 00:31:08.460 What's the reality or the likely that you get it? 614 00:31:08.460 --> 00:31:09.940 Very love, right? 615 00:31:09.940 --> 00:31:15.700 And under the conditions that you do get it, it's worth it for me every time. 616 00:31:15.700 --> 00:31:19.180 And so the idea is spelling out under what conditions would this make sense? 617 00:31:19.180 --> 00:31:24.060 And then putting that into a deal, into an agreement, like that is why the returns are 618 00:31:24.060 --> 00:31:25.060 in the terms. 619 00:31:25.060 --> 00:31:27.620 It's in the fine print, which is where the money is, right? 620 00:31:27.620 --> 00:31:32.100 The fortunes in the fine print, 35, whenever possible, use house money. 621 00:31:32.100 --> 00:31:36.020 And so what that means is that if there are things that are not your main game, right? 622 00:31:36.020 --> 00:31:40.540 If you have the opportunity to recoup your principle and still have money in the game, 623 00:31:40.540 --> 00:31:41.540 do that. 624 00:31:41.540 --> 00:31:45.740 And then at that point, then you can get super aggressive with the investments and things 625 00:31:45.740 --> 00:31:47.940 like that that you're making, but you're doing it on a house money. 626 00:31:47.940 --> 00:31:51.500 You're doing it with no chance of losing principle, right? 627 00:31:51.500 --> 00:31:55.620 And so whenever you have those opportunities, if it's not your main game, I would recommend 628 00:31:55.620 --> 00:31:56.620 taking them. 629 00:31:56.620 --> 00:31:59.220 The amount of times that I have done that, I've been very grateful for the times that I have 630 00:31:59.220 --> 00:32:02.340 not, I have been bummed that I did not do that. 631 00:32:02.340 --> 00:32:04.620 So it's one of the money rules that we added. 632 00:32:04.620 --> 00:32:07.100 36, always know how to get your money back. 633 00:32:07.100 --> 00:32:10.940 So whenever you're doing a deal, whenever you're making any kind of transaction, know how 634 00:32:10.940 --> 00:32:11.940 to get your money back. 635 00:32:11.940 --> 00:32:12.940 All right? 636 00:32:12.940 --> 00:32:15.700 Because if you think about this, this is a lot like downside production or preserving the 637 00:32:15.700 --> 00:32:16.700 principle, right? 638 00:32:16.700 --> 00:32:18.500 Which is just investing 101. 639 00:32:18.500 --> 00:32:21.940 If you know how to get your money back, you have to know the exact way of doing it. 640 00:32:21.940 --> 00:32:23.700 Not just like, oh, yeah, I can get my money back. 641 00:32:23.700 --> 00:32:25.820 It's like, no, but how would I do it? 642 00:32:25.820 --> 00:32:29.420 Like walk me through each of the steps so that I have full understanding of how this 643 00:32:29.420 --> 00:32:30.420 would work. 644 00:32:30.420 --> 00:32:34.500 And when you do that, you are able to decrease, because the thing is sometimes if they, 645 00:32:34.500 --> 00:32:37.460 if they actually don't mean it, then they won't have a way to do it and you'll be able 646 00:32:37.460 --> 00:32:39.380 to sniff something out immediately. 647 00:32:39.780 --> 00:32:42.100 37, cash flow is king. 648 00:32:42.100 --> 00:32:43.100 All right? 649 00:32:43.100 --> 00:32:45.820 And that's both on a personal level and on a business level. 650 00:32:45.820 --> 00:32:49.060 So for you, your cash flow is going to be dictated by your income minus your expenses, 651 00:32:49.060 --> 00:32:50.060 right? 652 00:32:50.060 --> 00:32:51.060 When I think cash flow, right? 653 00:32:51.060 --> 00:32:53.300 I'm thinking it's really your savings flow, right? 654 00:32:53.300 --> 00:32:56.180 Because your cash flow in a business is revenue minus expenses. 655 00:32:56.180 --> 00:33:00.660 So your cash flow as a person is going to be your income minus your personal expenses. 656 00:33:00.660 --> 00:33:04.420 And so many people have super high revenue, super high income, but very low cash flow 657 00:33:04.420 --> 00:33:06.100 because their expenses are the same. 658 00:33:06.100 --> 00:33:10.340 And so the idea is our profit as a person is our cash flow, right? 659 00:33:10.340 --> 00:33:11.780 That's what we save every month. 660 00:33:11.780 --> 00:33:14.740 That's what we should be, like if there's one thing that you get from money rules, is 661 00:33:14.740 --> 00:33:19.620 that you'd be switching your metric towards what am I saving every month rather than what 662 00:33:19.620 --> 00:33:21.180 am I making every month? 663 00:33:21.180 --> 00:33:25.180 Because the profit, what you save is the thing that matters, not the top line. 664 00:33:25.180 --> 00:33:26.700 And it's one of the biggest mistakes. 665 00:33:26.700 --> 00:33:30.780 And so your PR, your personal records should be around your savings amount, not your income. 666 00:33:30.780 --> 00:33:32.580 38, buy for forever. 667 00:33:32.580 --> 00:33:35.540 So this is a, this is a Warren Buffett and Charlie Mungerism. 668 00:33:35.540 --> 00:33:39.220 But Charlie said, the money isn't made in the buy or the sell. 669 00:33:39.220 --> 00:33:40.660 It's made in the wait. 670 00:33:40.660 --> 00:33:44.940 And so a lot of times the idea is, you know, they've given the idea if you had a punch card, 671 00:33:44.940 --> 00:33:45.940 right? 672 00:33:45.940 --> 00:33:48.860 If you got 20 punches on it, and those are the only investments you could make, you'd 673 00:33:48.860 --> 00:33:50.620 have a much better investing process. 674 00:33:50.620 --> 00:33:54.140 And believe it or not, there's some of the most successful private equity funds in the 675 00:33:54.140 --> 00:33:57.900 world actually run this style, right? 676 00:33:57.900 --> 00:34:01.140 Some of the most successful funds in the world actually do this with their traders. 677 00:34:01.140 --> 00:34:02.420 Each trader only gets 10. 678 00:34:02.420 --> 00:34:03.420 That's it. 679 00:34:03.420 --> 00:34:05.980 And so if they want to buy something else, they have to sell something they currently 680 00:34:05.980 --> 00:34:06.980 have. 681 00:34:06.980 --> 00:34:12.420 And so this process gives constraint to the decision making, which forces you to make 682 00:34:12.420 --> 00:34:13.500 better decisions. 683 00:34:13.500 --> 00:34:19.460 And so if you could never sell anything you buy, and you made that the thought process, 684 00:34:19.460 --> 00:34:22.900 when you are buying, you could never get out of it, then you buy differently, and you 685 00:34:22.900 --> 00:34:24.140 buy super long. 686 00:34:24.140 --> 00:34:27.500 And then ultimately, that's what doesn't interrupt the compounding process. 687 00:34:27.500 --> 00:34:30.100 And that's what unlocks huge wealth later. 688 00:34:30.740 --> 00:34:34.220 39, you heard me say it earlier, but FOMO means go slow, right? 689 00:34:34.220 --> 00:34:35.900 You feel FOMO, it means slowed out. 690 00:34:35.900 --> 00:34:39.580 It means take a second, give a breather, put some space between you and the decision, because 691 00:34:39.580 --> 00:34:43.460 most times, 99% of times, and a lot of people are feeling it now. 692 00:34:43.460 --> 00:34:47.740 But the thing is, it's like, if you got burned in this last crash, remember the lesson. 693 00:34:47.740 --> 00:34:50.100 Like if you don't remember the lesson, then it'll happen to you again. 694 00:34:50.100 --> 00:34:53.700 So whenever, like next time you feel that FOMO, like, God, I got to put money into this 695 00:34:53.700 --> 00:34:54.980 thing, go slow. 696 00:34:54.980 --> 00:34:58.540 Because you know who the best people are who invested in crypto, or the ones who didn't 697 00:34:58.540 --> 00:35:01.980 do it during the bubble, right? 698 00:35:01.980 --> 00:35:04.140 Those are the guys who have the best returns right now. 699 00:35:04.140 --> 00:35:05.620 And so don't try and time shit. 700 00:35:05.620 --> 00:35:08.300 Like the best people in the world still can't figure it out, right? 701 00:35:08.300 --> 00:35:13.260 And so again, if you're buying for forever, if you feel FOMO, if you're buying for forever, 702 00:35:13.260 --> 00:35:15.500 you won't feel FOMO, because you have an unlimited time horizon. 703 00:35:15.500 --> 00:35:19.020 The only reason you feel FOMO is because your time rises too short. 704 00:35:19.020 --> 00:35:24.420 40, if you can't afford to lose the money, then don't use the money, all right? 705 00:35:24.420 --> 00:35:29.140 So if you're like, this is my last dollar, then it's probably not a good idea to risk 706 00:35:29.140 --> 00:35:30.140 it, right? 707 00:35:30.140 --> 00:35:31.660 Which is why we always have the OSHIT Fund. 708 00:35:31.660 --> 00:35:34.100 So if you can't afford to lose it, don't use it. 709 00:35:34.100 --> 00:35:38.460 41, peace of mind can be bought, and it can be sold. 710 00:35:38.460 --> 00:35:42.700 And so if there are situations where you're like, man, this is going to keep me up at night, 711 00:35:42.700 --> 00:35:43.700 don't do it. 712 00:35:43.700 --> 00:35:44.700 Because you can sell it. 713 00:35:44.700 --> 00:35:45.700 You can sell your peace of mind. 714 00:35:45.700 --> 00:35:47.740 There's a price that's associated with peace of mind. 715 00:35:47.740 --> 00:35:48.740 You can also buy it. 716 00:35:48.740 --> 00:35:51.140 Like if there's things you're concerned about, you can literally buy insurance to the things 717 00:35:51.140 --> 00:35:52.300 that you're worried about. 718 00:35:52.580 --> 00:35:55.660 Peace of mind can very much be bought and sold, and I can tell you make much better decisions 719 00:35:55.660 --> 00:35:56.660 when you've got it. 720 00:35:56.660 --> 00:36:00.980 And so long term, it's not worth the short term sale of peace of mind to get the long 721 00:36:00.980 --> 00:36:02.980 term benefits. 722 00:36:02.980 --> 00:36:04.740 42 and final. 723 00:36:04.740 --> 00:36:07.620 A lot of people think about diversification in terms of industry, but they don't think 724 00:36:07.620 --> 00:36:09.260 about it in terms of capital stack. 725 00:36:09.260 --> 00:36:14.900 And so what that means is where you sit on the stack in a business. 726 00:36:14.900 --> 00:36:18.140 So if you lend to a business and you're the first, like a bank, for example, is at the 727 00:36:18.140 --> 00:36:20.220 top, it's a preferred creditor, right? 728 00:36:20.220 --> 00:36:22.380 If the person goes under, they get the house, right? 729 00:36:22.380 --> 00:36:25.300 There's a reason a lot of banks don't lose money unless they're getting greedy. 730 00:36:25.300 --> 00:36:27.060 That's not good enough, right? 731 00:36:27.060 --> 00:36:29.460 But most banks have been around for very, very long time. 732 00:36:29.460 --> 00:36:31.860 It's because the business model allows them to not lose money. 733 00:36:31.860 --> 00:36:33.540 And it's because they're the first creditors. 734 00:36:33.540 --> 00:36:37.340 And so you can invest in real estate, but if you have the bank, the bank is the first 735 00:36:37.340 --> 00:36:38.340 creditor. 736 00:36:38.340 --> 00:36:42.260 So you can think about diversification between stocks, crypto, you know, businesses, 737 00:36:42.260 --> 00:36:43.260 whatever. 738 00:36:43.260 --> 00:36:46.100 You can also think about it vertically in terms of where am I sitting on the stack? 739 00:36:46.100 --> 00:36:49.580 And so if you think about those in terms of both types of diversification, when the 740 00:36:49.580 --> 00:36:52.660 tide goes out, you're the one who gets your money back first.