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Frigality drives innovation, constrain, constrain, constrain.

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Even when you have money, one of the best things to do in my opinion is to constrain your

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resources, constrain time because it'll force you to think creatively to solve problems

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without using money as the solution.

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The wealthiest people in the world see business as a game. This podcast,

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the game is my attempt at documenting the lessons I've learned on my way to building acquisition.com

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into a billion dollar portfolio. My hope is that you use the lessons to grow your business,

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and maybe someday soon partner with us to get $200 million beyond. I hope you share and enjoy.

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I sold my company for $46 million last year across $100 million net worth at 32.

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I had a series of mentors that wrote millionaires and billionaires that I won't name drop because you

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would know who they are, recommended that I spend 12 to 18 months documenting all of my beliefs

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around money and the artifacts that have been created over the five years that led to that transaction.

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And so what I want to do is share the 42 beliefs that I have around money that helped me accumulate

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the material success that I had and hopefully so that you can do. Number one, he who gives the money

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has the power, not the one who takes it. So a lot of times poor people think that they're always

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trying to get money. I try to get money. The thing is that the person who gives the money is the

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one who's in control. Like if you think about the biggest institutions in the world, where are they

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banks? What do they do all day? They give money. And because when you give someone money, you get

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to dictate the terms of the agreement. You actually now own them. When a customer gives you money,

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you're the one who now has to deliver, right? They have control in the relationship. And so

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one of the biggest shifts that I had was that having the money, which is why I'm a buyer, not a

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seller, in acquisition.com, which is what we do in private equity. Like we have control rather than

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the person who accepts the money. Rule number one, the person who gives the money is in control,

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not the one who gets it. Number two, never trade reputation for money because you can get money back

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that you can't get reputation back. And so if you think about reputation as something that compounds

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over time, the longer you have it, the more you build it, the more compounds unto itself, which

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becomes in and of itself a competitive advantage. Like it is your brand, which allows you to do more

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deals, do bigger deals, do them faster, get more deal flow to you, deals being whatever that is for

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you. So it could be deals in terms of like selling cars, you could be selling houses, it could be

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selling companies, right? The same concept remains. But the moment you lose the rep because you traded

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it for money in the short, you lose the long, which means you cut the compounding. And that's where

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all of the gains in life come from. Number three, money loves speed, wealth loves time, poverty

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loves indecision. And so a big thing is this like macro micro micro money loves speed, right? You

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want to move quickly, like you want to spawn faster customers, you want to follow up with your

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leads, et cetera, right? But when you think about building wealth, it's not about transacting,

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it's about letting that compounding happen. And that takes time and it takes not interrupting it,

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which is one of the biggest and hardest parts of compounding is you have to let it multiply unto

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itself. Like the size of the business that creates wealth takes decades, not days to make, right?

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But the thing is is that most people never achieve either of those things because they sit in

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indecision and they continue to stay in indecision until they take action, which is why poverty

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loves the person who cannot decide. Four, we can always make more money than we need.

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And so this is a belief that has served my wife and I really, really well because we look back

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on our lives and we've never not been able to eat, not head shelter, and we've continued to

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increase our skill set. And so a lot of times we have this desire or, you know, our animal brain

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wants to make us make decisions out of scarcity, out of fear, right? And if we give into that,

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then we're not following this, which is like we don't need any of the money that's coming because we

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have always had enough. And so when you can operate from that perspective, then you have less need

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to make deals to do things and then you can sit back and have a lot more leverage in the conversation,

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right? Because you don't need anything. And that makes you hard to influence and gives you a lot of

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power. Fortunes are made by taking a lot of risk with a little bit of money and fortunes are

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maintained by taking a little bit of risk with a lot of money. And so one of the interesting things

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that I've seen people do, especially when they start making money or start having money, is that

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they think that they need to replicate the high risk thing because if you think about fundamentally,

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every business in the beginning, like somebody who's self made had nothing. And so they risked

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everything in order to make it big. But the thing is when you have nothing, you're not risking a lot,

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right? You have basically no downside. You have nothing to lose, which makes you dangerous,

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which is one of the biggest advantages of having nothing. But if you continue to do that,

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when you do have something to lose, you can lose your fortunes. And no matter how big the number is

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anything multiplied by zero is still zero. And so fortunes are made by taking lots of risk in the

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beginning, but they are maintained and slowly grown by taking little bits of risk with lots of money.

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And so you have to change the behavior once you have the cash once you have the empire.

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Six, money flows where attention goes. And I'll hit on this one real quick, which is that,

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if you spend time thinking about fashion all day, your attention's going towards buying clothes.

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If you think about cars all day, it's going towards your car. If you think about your business

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all day, it should be going towards your business. And on a micro level within the business,

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if you have multiple product lines or you have multiple businesses or hustles,

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this is why I'm such a big proponent of pick one thing, go all in. That's it. One thing, all in.

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And when you do that, because you only have so much juju. And so think about it like a magnifying

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glass. So if you've got the sun and you're the sun in this instance, and you've got to burn a hole

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to get through to the next level. If you're a spread across tooth, thin of an area,

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you never get enough concentrated heat. But the thing is that that sun, when it's concentrated

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enough, can blast through any barrier. But most people have the potential, but they don't have the

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focus, which is why they can never break through. So money flows were attention goes.

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Seven, your home life and your business life have to be aligned money wise. So you can't

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try to try to try to grow a business, right? And like reinvest everything here while you're

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living a super lavish lifestyle trying to flex, right? Like it has to be aligned. And so one of the

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things that we have is that all of our business rules around money are also our home rules around

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money. And so if we don't live with any any debt, you don't mean personally, that are for

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liabilities within our personal lives, we do the same thing within our business lives. And so

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the values we have and how we treat money inside and outside of the business are the same.

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I see so many people who live like split lives, like they've got wives or spouses that want to

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spend like crazy, right? But then they're trying to do these things in the business or the reverse,

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right? And so they have to be in alignment. Otherwise, long term, you create conflict and then that's

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what breaks things. Ignore money advice from poor people. This may sound ridiculous, but let

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me say it differently. Ignore money advice from your dad or mom who are poorer than you want to be.

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Ignore money advice from your good friends who are poorer than you want to be. Ignore money advice

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from people who have smaller dreams for your life than you do. And so the big thing is it's like

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their opinion does not matter because they have not been there. Which is the lowest level of

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expertise is having been there, right? The higher up the expertise is not only have you been there,

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but have you taken many people just like you to where you're trying to go, right? They probably

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don't have any of those things. And so what they're really doing is just regurgitating something that

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they may have heard from somebody else because they have no context. And then you somehow take that

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as truth. And so what happens is you have people, it's the blind leading the blind. You have people

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who have no idea who are ignorant leading also the ignorant. So if you want to get out of that

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situation, you have to stop consuming that information because it becomes the lengths to reach

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you see the world. And it's also wrong. The reason that rich people can lose everything and then

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recreate it is because they see reality more accurately. The reason people can't make money is

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because they don't see reality the way it actually is because how is it that somebody else can make

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a lot of money really quickly and someone else can't they see reality differently. And so most of

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life is trying to pull these rocks out of our vision so that we can see more clearly. So stop

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listening to poor people about money. Nine, it's always easier to buy than to sell. So think about it.

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You want to get into a stock. You want to get into something. You can buy it instantly. You want

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to get into a real estate deal. You want to get into a business, whatever. It's always easier to buy

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than it is to sell. And so because of that, you have to be extra careful. You want to put all the

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slow on the buy and you want to put all the lubricant on the sell in terms of your thinking process.

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And so that's where we use discipline. 10, money is fickle. Money is jealous. It sticks and goes

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to the person who pays it the most attention. And so if you think about this big, big,

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big macro picture, money comes into the system. But there are these grooves like rain grooves

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in the ground where it all eventually flows up to the few people who pay it the most attention.

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Right? Like someone gets paid, they go by their groceries, the grocery person has to go by from the

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the supplier, supplier, buy it from whatever. And the economy continues to go. But the person

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who has the access is the one who pays it the most attention is the one who it sticks to at the end.

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Which is why wealth always ends up flowing to the few who pay it the most attention.

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Otherwise, everyone else is just a very temporary holder of the money. They're just taking

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one hand going out the other, one hand going out the other. And so if you pay the most attention

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to the money, you're the one who will end up sticking to because it always loves the person who

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pays it the most attention. 11, we stay poor until we've learned all the lessons that poverty has to

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teach. And so one of the things is that people stay in poverty, but they're not trying to pay

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attention to what lesson do I need to be learning that I'm not. There's a boss right now and it's

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poverty. You have to beat the boss, you have to learn the lesson to beat the level. So it might be

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actually taking action. That might be part of the lesson that you need to learn. It might be

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learning how to save money at a basic level, personal finance, learning how to make more than

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you spend, learning how to increase your skill set so that you can actually provide value to other

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people, solving other people's problems. These are the lessons that we have to learn in poverty to

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get out of poverty. And until you do that, you don't beat the level. 12, frugality drives innovation,

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constrain, constrain, constrain. And so even when you have money, one of the best things to do

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in my opinion is to constrain your resources, constrain time because it'll force you to think

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creatively to solve problems without using money as the solution, right? And if you have constraints

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right now on time and or money, don't see it as a disadvantage because it's what people who do

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have money try to get into to solve problems. So it's actually an advantage. And the only thing

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that's the disadvantage is thinking it is. 13, think once before investing, think twice before

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spending. So investing is something that you're putting money into that is going to give you

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return of some kind. It's either going to give you a skill that's going to increase your earning

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capacity or it's going to be something that's going to quite literally give you a return in

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terms it's going to be yield or worth more in the future, right? Spending is something that's

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going to never be worth more in the future and it's going to be consumed. And so think twice

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before you consume the money that you are spending think once before investing. And so the idea

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here is that we want to put the discipline more around the spending than we do around the investing

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because most times in general, especially when you're starting out, the more you invest as a

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as a thought process is like you're always investing, some things will return more than others,

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but overall you will see compounding returns. 14 money flows to the person you need to the least.

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And this is one of those unfortunate things about the world, right? The risk get richer. The risk

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get richer because they don't need it. And because they don't need it, they have leverage.

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And so the idea is you have to sell not from your own wallet from the person in front of you,

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right? You have to come to the table with other options. And so it's the person who needs nothing

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who's the person who has the most power and that's where the money will go. 15, we make money

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or money does not make us. This was a belief that Layla and I had to write down because a lot of

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times you start tying your self-worth to your net worth, right? And so what happens is if you do

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that, then your net worth itself becomes a liability to your own self-esteem. And so I started noticing

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this within myself was that I started tying my self-worth to my net worth. And so I had to create

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a different statement of belief that I had to choose to believe, which is that it is my ability to

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make money, which is what creates my value, not the money itself because the money itself can be

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taken. You don't know this, but my family was in the Iranian Revolution and everything they

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had was taken. And so that's why the idea of legacy to me is so silly because all it takes is one

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government saying, oh, all that land, all those cars, all those homes, those are ours now. And that's

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it. And so a lot of people have this idea of legacy impermanence that's just an illusion. And so for

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that reason, the value is in you, not in things that you make, which is why we make our money or money

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doesn't make us. Sixteen, it may be an amazing opportunity, but not our amazing opportunity.

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And so I think one of the things that I needed early on was permission to not do things,

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because once you start to learn to take action, because in the beginning, you don't know how to do

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anything. Your analysis paralysis and you just get scared and you're ignorant, you don't know

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what you're doing. But once you get over that, which is the first lesson of poverty, you have to

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start taking action, right? Once you get over that, then the problem is that your yes muscle becomes

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too flexed, right? You start saying yes to everything. And so the idea was to be able to say,

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it's not that this thing is a bad opportunity. I recognize it. It's a great opportunity. It's

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just not my great opportunity. And it also gives you language to tell other people who are trying to

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present things to you. Say, we should do this thing and we should do this thing together. You say,

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dude, I think it's amazing opportunity. I just don't think it's my amazing opportunity. And it's

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got me out of so many situations that I know long-term wouldn't have been good for me. Seventeen,

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we control the money flow wherever possible. So if you think about the flow of money, whether you're

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like people who have a lot of control payment processors, right? Like everybody thinks they're

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amazing until the day you can't process money, right? And so the idea is the further upstream you

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can go, the more leveraging control you have over the money. And so there's a reason that franchises

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in general take a percentage of top line. There's a reason that insurance companies get paid before

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they put money out, right? Banks get the money and then they give it back later, right? So the idea is

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how, who's the person who's furthest upstream in the money? Those people, churches, God takes 10%

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of top line, right? The idea is that the people who like, they get it. This is old money, right?

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This is why we do this stuff. This is why we crystallize it. It's that the person who's furthest

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upstream in the money has the most power over it. So whatever possible control the money flow.

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18, always having a shit fund. One of the things that's given me a tremendous amount of confidence

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in going out out there and risking it is that I've always had this like, just in case fund. And

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that I don't invest in anything that is risky at all. So this is just like bonds. And I know

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here's what's crazy. I know that I'm losing money over time by the fact this money is rotting.

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But the thing is is that me knowing that I can take whatever risk I want and I am still protected

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and everything that I have for the rest of my life is taken care of gives me a lot of peace,

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which allows me to be more aggressive, be more offensive. And so as soon as you can have your

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ocean fund, whether it's three months, whether it's six months, whatever it is, start putting that

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away that nut so that you can go more on the offensive because you're not worried about how you're

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going to eat. 19, the biggest eroder of wealth is ignorance. The second biggest is taxes.

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And so the idea here is that not knowing how to make a million dollars is costing you whatever

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you make every year minus a million dollars. And so if you make 50 grand a year, it costs you

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$950,000 a year to not know how to make a million dollars. And so the question is what would I

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pay to pay down that debt, that ignorance debt, which is the most expensive thing that everyone pays

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for every single month right now, wherever you are, whatever your goal is, you're paying a debt

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to the ignorance that you have for not having that income. Like if you knew how to do it, you would

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be doing it. And so for me, that's always been the thing that scared me the most, which was how do I

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pay down this debt as fast as possible, which is why I put so much money into paying down this

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invisible hand that's been suppressing my income my whole life and yours too. And the invisible

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hand is the ignorance. That is the debt that collects every single month the money that you are

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not making, right? And so you have, let's say right now, you could be making a million a month,

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but the invisible hand is taking $950,000 every month or if you're making 50 grand a month, whatever

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it is. It's taking all of that extra money and putting into his pocket and that's the cost of

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ignorance. And so the thing is is how do we get that hand to go away and we get that through

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knowledge, right? We get that through experience, we get that through skills. And that's what we

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have to pay for in time or money. 20, you get paid for the value you create times your ability to

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negotiate divided by how hard you are to replace. So the idea is if you provide something that's

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very valuable and you're very good at negotiating, but somebody else can provide the exact same

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thing as you for a tenth of the price. You still don't have that good of a negotiating position,

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right? So the idea is how do I provide a huge amount of value, learn to negotiate for as much

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of it as possible and do it in such a way that no one else can compete against me. If you can do

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those three things, that is how you create value. That is how you make money. And it's really

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making money is capturing a percentage of the value that you create for other people. That is

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what making money is. You're solving someone else's problem. The value of that problem can be quantified

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and the percentage of that value that you capture is how you make money in exchange.

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So if you don't know how to provide value and you don't know how to negotiate and everyone can do

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this and you can do the same thing as everybody else and nothing unique, then you have a hard time

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making money. So reverse those things and that's how you make it.

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Aimosonation, quick break just to let you know that we've been starting to post on LinkedIn and

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want to connect with you. All right, so send me a connection request and note letting me know that

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you listen to the show and I will accept it. There's anyone you think that we should be

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connected with tag them in one of my relay lists posts and I will give you all the love in the

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world. All right, so let's get back to the show. 21 mistakes love a rush decision. So whenever we

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feel like we have FOMO, right, whenever you like I've trained myself now enough that like when I

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feel FOMO, I pause. FOMO means slow go. It means give it a pause, right? And the reason for that is

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that most irrational decisions mistakes loved a rush decision is that I always think about that

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over and over and it's like, hey, this is probably a mistake because mistakes love rush decisions.

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And so it's like, well, then let's just give it a cool down period. And so it's just one of those

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easy beliefs that has slowed me down and has saved me so much money for mistakes. It's hard even

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like millions and millions of dollars in money and failed and brand deals and reputational deals

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that I didn't do because I was like, I don't know. I'm going to give this one a cool down period

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and see how I look at it in 30 days. And 30 days later, I'm very glad I didn't do it.

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22 leverage comes from not needing the other person. And more specifically, leverage comes from

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needing nothing. And so the idea is you can either satisfy all your needs or you can eliminate all

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your needs. Either way, that is how you create leverage. Think about this, you can't control somebody

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who needs nothing, right? If someone needs nothing, you have no influence over them. And so the goal

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is how do I become that person? I can either become that person by satisfying every need I have

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materially or by decreasing my needs to zero. Either way, you can do it. The monks do it by giving

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relinquishing everything and needing nothing. And the rich man does it by satisfying all his needs

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and not needing the other deal on the other side of the table, right? And so by doing that in both

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of those situations, you create leverage because you can get more because you don't need it.

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23 markets take longer to adjust than you expect. And then they move faster than you can

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imagine. And so this is one of those things where like the big short, if you saw that movie,

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the guy was shorting for like four years. And he's like, the math doesn't make sense, but it's still

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the bubble kept going, bubble kept going, bubble kept going. And then it happened faster than people

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imagined. So when there are corrections and there's something that feels fundamentally off,

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it takes longer for a market to adjust. And then when it does make the adjustment, it happens

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very fast. And so the idea is that we have to be comfortable with the fact that we might have to

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sit in discomfort for an extended period of time before what we believe to be reality is reflected.

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24. Money is a game treated as such. You can't win the game if you don't know you're playing one.

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And so one of the things is that the wealthiest people in the world see money as a game, right?

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They're just trading tokens at this point because they don't even use money to satisfy material

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needs because they already have it. And so the idea is how can I adopt that perspective as soon

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as I can, earlier on in my career? And so that's where thinking about things in terms of personal

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bests, right? Thinking about in terms of bank account PRs. Thinking about your PRs being how much you

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save every month rather than what you make every month, right? Checking your stats every morning,

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like you would a video game, checking your rankings against yourself. Like these are the things

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that the people who have more money. Like when I was poor, I checked my bank on every single day.

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And I continue to check it every day until we pass about 20 million dollars in our worth. And I

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start switching weekly because honestly, the variations made it made no sense to check it daily.

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But the idea there is that what gets measured gets improved. You can get someone to lose weight

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just by simply getting them to weigh themselves every day without giving them any advice at all,

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just weighing themselves, drawing attention. Remember, money flows for attention goes. So if you

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pay attention to it, it will start sticking to you. 25, don't bet the empire for a pot of gold.

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And so the idea here is like, no matter how big the number is, and this is a war in Buffett

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no matter how big the number is, anything multiplied by zero is still zero. And so even though you

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might have this opportunity here, it's never worth risking the whole pie to get the pot of gold.

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It might be this tiny opportunity, but it's not worth the risk. And I can't tell you the amount of

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times where I'm like, man, if I went all in on this thing, money wise. So the thing is that you can

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go all in on your attention, right? But I wouldn't go all in on your money, right? Just a different

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perspective, unless you absolutely know what you're doing. 26, always do a starter deal with new faces.

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So this is a hard one because one of your friends comes to you and it's like, dude, I want to do

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this Airbnb thing or, hey, I've got this portfolio of whatever, like you should invest, right?

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If you've never done a deal with somebody, accept the fact that you're going to miss out on the

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first deal and you do a starter deal first, all right? It's training wheels. You got to see how

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these people are, right? Now, everything's just still a great on paper. Everything's just still

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makes sense. They should still be amazing characters, etc. Once they check all the boxes, you still

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mitigate your risk by saying, first deal I'm going to do with you is a small deal, right? And so

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mind you, people come to us for very big checks. And so I say, hey, I'm not going to write you a

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checkable above X percent until we've already done a deal, which if you're thinking about that,

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you might be like, well, it might take five years for a deal to materialize, yeah? Which is why

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investing is a long-term game, which is why trust is built over time, right? And so the idea is

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like that means that you might have to get several first-time deals done, which is also good because

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of diversifier risk in the beginning. And you will find out, I promise you, when you do get a

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partner that you were really excited about. And then you hand them the check. And then a year

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later, like, thank God I didn't give this guy the whole farm, right? And so this is one of those,

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this is a downside mitigator because most people who are rich think about not having risk rather than

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risking it at all. Remember, fortunes are built by taking a lot of risk of a little bit of money.

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Fortunes are maintaining grown. They're taking a little bit of risk with a lot of money. And you

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can only take a little bit of risk with somebody that you already know, right? Which is why started

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deals with new faces. 27. Trust is worth more than a bigger return. Trust lubricates

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deal velocity. Trust compounds. And so one of those valuable things you can have, especially in

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investing in yourself, et cetera, is trusted partners, right? And so it's one of those things

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where like you don't want to take all the meat on the bone because you want to have a long-term

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relationship, right? And if you have the opportunity to want over somebody two years in and you've

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had multiple good deals with somebody, that is one where you lose on the compounding benefit of

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trust. And you will make so much more over the relationship by maintaining it and my maintaining

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trust on both sides, making it always work. I can tell you when I talk to partners, when I talk

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to business owners, how they talk about the people that they do business with, tells you a lot

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about them and how they do business. And so when I talk to somebody and I'm like, hey, why didn't you

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do this? They're like, hey, these guys have been good to us for a very long time. Like, I don't

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want to rock that boat. Like, we've had a very good relationship for 10 years. That is something I

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respect a lot. And that is what people who have money act like. Poor people are always trying to

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one over everyone, over and over again. And they never get any trust from anybody, which means they

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have no compounding relationships. And so they always have to hunt. They always have to find the

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next thing. Rather than they have a network of people who are always feeding them deals, always

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giving them slices of other pieces of pie because they weren't greedy early. 28. Money is not

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a zero sum game. And so one of the things, again, when you're poor, you think that if I either get

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this money, I got to take this money. It's like, there's this certain pot of money, but the money

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supply itself is fluid. It grows, right? And money is created quite literally printed, but also in

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that you can create a deal where multiple people win. And this was something that I didn't understand

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earlier on. I always thought like, I have, it's a zero sum. Like, they've got money and I have to

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take it somehow, right? I have to exchange something for it, whatever it is, right? I have to somehow

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get them to exchange with me. But the older I've gotten the more I'm like, how can I get

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on to their side of the table and both make money together? And so I have made significantly more

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money getting on the same side of the table as the other person saying, why don't we both take a

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big piece of this upside rather than trying to take slice up a pie that's in front of us, right?

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So it's focusing on the future pie rather than the pie that's in front of you, right? It's creating

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value rather than slicing and dividing value. 29. Never take a standard deal. There's always a better one.

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And so one of the things here is that like, there's always a better deal. And a lot of times you

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just have to ask for it, which is like, hey, this term and this term and this term are things that

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are concerning to me. Is there anything we can do about these? Because it may influence. And the big

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thing here, remember earlier, leverage comes from not needing the deal. You have to be willing to walk

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away. Like I can't say this more than I'm saying this right now. If you need a deal, you have no

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leverage and you're basically faking. The only way to actually get better deals is to not need deals.

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And the only way to get better deals when you don't need deals is to ask for better deals and

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be willing to walk away when they say no. And I can't tell you the amount of times that I've

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walked away from a deal and the person comes back after saying, well, I can't do a deal. I'm like,

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cool, no worries. And they come back three or four days later and they're like, all right,

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man, I'll do the deal, right? And then I might be like, hey, well, the terms have changed. Yeah,

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I'm kidding. But you get the idea, right? Is that one, don't accept standard deals. Two,

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the only way you can not accept standard deals is have other deals and have leverage.

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Step three, you have to ask for it and be willing to walk away when they say no.

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Thirty, expect low risk, amazing returns. So one of the things that I found about with

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the wealthiest friends that I have who are a billionaire plus is that they're just not interested

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in 10, 20% returns. They're looking for 50% plus annualized returns because they're like, well,

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I figure if I'm wrong, I'm not going to get that. And if I'm right, then I crush it. They're like,

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my shoot for 10 if I'm wrong, I'm way below 10. And that made a ton of sense to me. And it's just

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like, it's an expectation of the world. It's like, well, when I invest, I just expect that this

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is going to be the new average. Most people expect 10% because that's what the S and P does. It

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doesn't mean that that has to be your personal standard, right? And so thinking through that way has

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changed how I saw investing in general. Thirty one, don't think in IRR, which means internal

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rate of return. Instead, think in how long will this take to double? How long will this take to

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triple? So for example, if you're like, hey, I want to have a 25% IRR. It's hard to say this is

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going to grow by 25% a year. What is easier to say is this is going to double in three. And so

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the question is, what can I get today that's half off what it's going to be in three years? It's a

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much easier question to solve than what do I think is going to grow by 25% three times? Does that

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make sense? And so changing how you ask the question changes how you'll find the answer.

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32, this is a buffetism, but diversification is a hedge against ignorance, right? And it's only

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risky if you don't know what you're doing. And the converse of that is that the people who make

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the most money know what they're doing. And so there's two ways of knowing what you're doing,

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either know everything or only know a few things and then only do those things, right? And that's

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what the wealthiest people that I have seen and witnessed myself. The games that they play, you know,

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I've got, I've got buddies who only do hard money lending, right? That's all they do. And they do

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shitloads of it, right? I've got people who I know who just do like market making, which is like

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basically providing liquidity to buyers and sellers to make markets work, right? That's all they do.

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I've got friends who only flip houses. I got friends who only buy commercial. I've only like,

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there's a million games and all of them make tons of money. And so it's really about taking one game

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and taking it to its natural conclusion, which is learning every single aspect of that game,

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rather than saying, I want to be in stocks, I want to be in real estate, I want to be in crypto,

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I would also have my side hustles, I want to like, you can't get good at any of them because

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you're competing against people who are all in. That's the thing. Like if you're in stocks,

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you're competing against hedge fund managers, it's all they do, right? And so play one game and

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play well. 34, I skipped 33 because I covered it in the last one. Returns are in the terms,

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right? So you probably heard the saying, it's either your price and my terms or my, my terms

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and your price, right? And so, or if I said that wrong, you know what I'm saying? The idea here is

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in my opinion, terms are far more powerful. Like I could say, hey, man, I'm going to pay you a

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billion dollars for your company, right? Like whatever you, everybody who's watching this,

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if you make money doing anything that's a side hustle, I'll pay you a billion dollars

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for your business, but it's on my terms, right? And I can make and I can make that deal every time

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and not lose money. And so that's the thing is it's like the returns are in the terms, it's in the

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fine print, right? And so understanding the terms of the agreement and how many different ways

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you can make terms. And the only way you do that is through having the conversations and trying

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to structure it from learning from other people, right? And so you have to be careful of the terms,

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but be understand how you can use those things to your advantage and give an example there.

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So if I put your business for a billion dollars, I would say sure, I'll give you a billion dollars,

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I'll give you a billion dollars in cash, but I'll give it to you over five years. And the only

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terms that I'll give it under is that it's already doing 500 million a year in, in, in income.

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And it's not doing that today, but I will happily give you a billion dollars over five years

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if it makes 500 million dollars in profit next year. It's not doing that today. So on paper,

380
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I bought your company for a billion dollars. What's the reality or the likely that you get it? Very

381
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love, right? And under the conditions that you do get it, it's worth it for me every time. And so

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the idea is spelling out under what conditions would this make sense and then putting that into a deal,

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into an agreement. Like that is why the returns are in the terms, it's in the fine print which is where

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the money is, right? The fortunes in the fine print. 35, whenever possible, use house money.

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And so what that means is that if there are things that are not your main game, right? If you have

386
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the opportunity to recoup your principle and still have money in the game, do that. Because then,

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at that point, then you can get super aggressive with the investments and things like that that

388
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you're making, but you're doing it on a house money. You're doing it with no chance of losing

389
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principle, right? And so whenever you have those opportunities, if it's not your main game,

390
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then I would recommend taking them. The amount of times that I have done that, I've been very

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grateful for the times that I have not, I have been bummed that I did not do that. So it's one of

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the money rules that we added. 36, always know how to get your money back. So whenever you're doing a

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deal, whenever you're making any kind of transaction, know how to get your money back, all right? Because

394
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if you think about this, this is a lot like downside protection or preserving the principle, right?

395
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Which are just investing 101. If you know how to get your money back, you have to know the exact

396
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way of doing it, not just like, oh, yeah, I can get my money back. It's like, no, but, but how would

397
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I do it? Like walk me through each of the steps so that I have full understanding of how this would

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work. And when you do that, you are able to decrease because the thing is sometimes that they,

399
00:31:36.080 --> 00:31:39.520
if they actually don't mean it, then they won't have a way to do it and you'll be able to sniff

400
00:31:39.520 --> 00:31:46.240
something out immediately. 37, cash flow is king, all right? And that's both on a personal level

401
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and on a business level. So for you, your cash flow is going to be dictated by your income minus

402
00:31:50.240 --> 00:31:54.720
your expenses, right? When I think cash flow, right? I'm thinking, it's really your savings flow,

403
00:31:54.720 --> 00:31:58.880
right? Because your cash flow in a business is revenue minus expenses. So your cash flow as a

404
00:31:58.880 --> 00:32:03.680
person is going to be your income minus your personal expenses. And so many people have super high

405
00:32:03.680 --> 00:32:08.080
revenue, super high income, but very low cash flow because their expenses are the same. And so the

406
00:32:08.080 --> 00:32:13.520
idea here is our profit as a person is our cash flow, right? That's what we save every month. That's

407
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what we should, like if there's one thing that you get from money rules, is that you'd be switching

408
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your metric towards what am I saving every month, rather than what am I making every month?

409
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Because the profit, what you save is the thing that matters, not the top line. And it's one of

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the biggest mistakes. And so your PR, your personal records should be around your savings amount,

411
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not your income. 38, buy for forever. So this is a, this is a Warren Buffett and Charlie

412
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Mungerism, but Charlie said the money isn't made in the buy or the sell. It's made in the wait.

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And so a lot of times the idea is, you know, they've given the idea if you had a punch card,

414
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right? If you got 20 punches on it, and those are the only investments you could make,

415
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you'd have a much better investing process. And believe it or not, there's some of the most

416
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successful private equity funds in the world actually run this style, right? So the most successful

417
00:33:00.480 --> 00:33:04.960
funds in the world actually do this with their traders. Each trader only gets 10. That's it. And so

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if they want to buy something else, they have to sell something they currently have. And so this

419
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process gives constraint to the decision making, which forces you to make better decisions. And so

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if you could never sell anything you buy and you made that the thought process, when you are

421
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buying, you could never get out of it, then you buy differently and you buy super long. And then

422
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ultimately, that's what doesn't interrupt the compounding process and that's what unlocks

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huge wealth later. 39, you heard me say it earlier, but FOMO means go slow, right? You feel FOMO,

424
00:33:36.800 --> 00:33:40.160
it means slowed out. It means take a second, give a breather, put some space between you and the

425
00:33:40.160 --> 00:33:45.760
decision because most times 99% of times and a lot of people are feeling it now. But the thing is

426
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it's like if you got burned in this last crash, remember the lesson. Like if you don't remember

427
00:33:50.240 --> 00:33:54.000
the lesson, then it'll happen to you again. So whenever like next time you feel that FOMO,

428
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like, God, I got to put money into this thing, go slow. Because you know who the best people are,

429
00:33:58.560 --> 00:34:04.000
who invested in crypto or the ones who didn't do it during the bubble, right? Those are the guys

430
00:34:04.000 --> 00:34:08.240
who have the best returns right now. And so don't try and time shit. Like the best people in the

431
00:34:08.240 --> 00:34:14.000
world still can't figure it out, right? And so again, if you're buying for forever, if you feel FOMO,

432
00:34:14.000 --> 00:34:17.200
if you're buying for forever, you won't feel FOMO because you have had an unlimited time rise in

433
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the only reason you feel FOMO is because your time rises too short. 40, if you can't afford to lose

434
00:34:23.200 --> 00:34:28.400
the money, then don't use the money, all right? So if you're like, this is my last dollar,

435
00:34:28.400 --> 00:34:33.280
then it's probably not a good idea to risk it, right? Which is why we always have the OSHIT fund.

436
00:34:33.280 --> 00:34:39.440
So if you can't afford to lose it, don't use it. 41, peace of mind can be bought and it can be sold.

437
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And so if there are situations where you're like, man, this is going to keep me up at night,

438
00:34:44.240 --> 00:34:48.560
don't do it because you can sell it. You can sell your peace of mind. There's a price that's associated

439
00:34:48.560 --> 00:34:51.760
with peace of mind. You can also buy it. Like if there's things you're concerned about, you can

440
00:34:51.760 --> 00:34:55.360
literally buy insurance to the things that you're worried about. Like peace of mind can very much

441
00:34:55.360 --> 00:34:58.720
be bought and sold and I can tell you make much better decisions when you've got it. And so long

442
00:34:58.800 --> 00:35:03.360
term, it's not worth the short term sale of peace of mind to get the long term benefits.

443
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42 and final. A lot of people think about diversification in terms of industry, but they don't

444
00:35:09.200 --> 00:35:15.360
think about it in terms of capital stack. And so what that means is where you sit on the stack

445
00:35:15.360 --> 00:35:19.600
in a business. So if you lend to a business and you're the first, like a bank, for example,

446
00:35:19.600 --> 00:35:23.920
is at the top, it's a preferred creditor, right? If the person goes under, they get the house,

447
00:35:23.920 --> 00:35:27.200
right? There's a reason a lot of banks don't lose money unless they're getting greedy. That's not

448
00:35:27.200 --> 00:35:31.440
good enough, right? But most banks have been around for a very, very long time. And it's because

449
00:35:31.440 --> 00:35:35.120
the business model allows them to not lose money. And it's because they're the first creditors.

450
00:35:35.120 --> 00:35:39.600
And so you can invest in real estate, but if you have the bank, the bank is the first creditor.

451
00:35:39.600 --> 00:35:44.320
So you can think about diversification between like stocks, crypto, you know, businesses, whatever.

452
00:35:44.320 --> 00:35:48.080
You can also think about it vertically in terms of where am I sitting on the stack? And so if you

453
00:35:48.080 --> 00:35:53.120
think about those in terms of both types of diversification, when the tide goes out, you're the one

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who gets your money back first.