WEBVTT 1 00:00:00.000 --> 00:00:06.000 I hit a hundred million dollars net worth at age 31, but before that, I lost all my money twice. 2 00:00:06.000 --> 00:00:11.360 And the difference between me losing all my money the first few times and now are these rules. 3 00:00:11.360 --> 00:00:14.560 So this is nobious advice for making money and keeping it. 4 00:00:14.560 --> 00:00:21.280 Number one, passive income is a lie. If you think about how money is made, you make money during time 5 00:00:21.280 --> 00:00:26.800 because every minute we're alive, a minute passes, time passes, and we make money over that time 6 00:00:27.280 --> 00:00:32.240 which means every single person on planet earth has a dollars per hour that they make. 7 00:00:32.240 --> 00:00:38.000 And so it's not that passive income doesn't exist just as much as active income doesn't exist. 8 00:00:38.000 --> 00:00:45.600 It's a spectrum where it's how active is it or how passive is the activity that I'm doing relative 9 00:00:45.600 --> 00:00:51.440 to the time that I'm investing. And so I would eliminate active versus passive and simply say what 10 00:00:51.440 --> 00:00:56.400 is my return on time or how much do I make per hour? It's just that most people get really scared 11 00:00:56.560 --> 00:01:00.880 of that. It's like no one should trade their hours for money. Everyone trades their hours for 12 00:01:00.880 --> 00:01:05.680 money. It's just that when they receive the money, it's just not denoted in hours. And so I think 13 00:01:05.680 --> 00:01:10.080 there's two downstriking impacts in terms of changing your behavior around this that I had to apply. 14 00:01:10.080 --> 00:01:17.600 Number one is that I was obsessed with trying to find quick, easy, low effort money things. 15 00:01:17.600 --> 00:01:24.160 And so I ended up spending tons of money on things that I was obsessed with hoping would 16 00:01:24.160 --> 00:01:30.640 cost me no time to make. And I would put not nearly enough time to the things I was actively 17 00:01:30.640 --> 00:01:36.240 making money with and thinking, how could I just make my active income significantly higher? 18 00:01:36.240 --> 00:01:43.280 And I would get obsessed with the idea that everything I did actively had to be scalable or 19 00:01:43.280 --> 00:01:48.720 it wasn't worth it. Because if it's not scalable, then why should I buy? I shouldn't trade my time 20 00:01:48.720 --> 00:01:54.000 for money. But if I looked at what I was making over the last year and divided it by the amount of 21 00:01:54.000 --> 00:02:00.080 money I made per hour, this activity was 15 times what I was averaging per hour. So I should 22 00:02:00.080 --> 00:02:05.760 absolutely do as many hours of that until all of my hours are that. And then I should find something 23 00:02:05.760 --> 00:02:10.880 else I can trade my time for that's even higher. And so if you want a very humbling experience, 24 00:02:10.880 --> 00:02:16.880 look at how much you made last year and then divide it by 2000. If you want to know how much you 25 00:02:16.880 --> 00:02:22.800 made just in a 40 hour work week. Now, if you want to look at how much you made per actual hour 26 00:02:22.800 --> 00:02:28.480 of being alive, you can divide it by around 8000 or just take that number and divide it by four. 27 00:02:28.480 --> 00:02:34.640 And that's actually how much you make per hour. And so when you're looking at is this worth my time, 28 00:02:34.640 --> 00:02:39.760 if it's more than that number, it probably is. And so what I should have done and what changed 29 00:02:39.760 --> 00:02:46.000 for me was that I stopped trying to invest my money from my active into trying to find more passive 30 00:02:46.000 --> 00:02:52.000 things and tried to say how do I invest my money more into my active to multiply my active that I 31 00:02:52.000 --> 00:02:57.040 know is working. Number two, if you can't buy it twice, don't buy it once or even buy it three 32 00:02:57.040 --> 00:03:02.800 times or four times or five times over, don't buy it once. And the way that really shifted how I 33 00:03:02.800 --> 00:03:07.840 started spending money or rather started saving money and not spending money was when I started 34 00:03:07.840 --> 00:03:14.960 looking at how much time it took me to make the amount of money post tax to buy whatever I wanted. 35 00:03:14.960 --> 00:03:20.400 And I remember this clear as day, I was working at Smoothie King as a blender tender and I was making 36 00:03:20.400 --> 00:03:28.560 675 an hour and I just got an erase from 625 an hour updating myself. Anyways, and while I was there, 37 00:03:29.200 --> 00:03:34.000 the co-workers that I had and I would always go to lunch next door at Coacy, which was like a sandwich shop. 38 00:03:34.000 --> 00:03:39.600 And it was like 13 bucks for a sandwich, right? And a drink and chips and whatever, right? And so 39 00:03:39.600 --> 00:03:44.880 I remember looking at my check and my 675 an hour after taxes and fees was like six bucks an hour and 40 00:03:44.880 --> 00:03:53.440 I was like, man, I gave up two hours of my 6 hour shift, every shift to go by lunch. And I was like, 41 00:03:53.440 --> 00:03:59.520 I'm literally giving a third of my earning away for lunch every single day. If I knew that I had to 42 00:03:59.520 --> 00:04:04.080 work the first two hours just to get the sandwich, I don't think I'd ever make that trade and yet I 43 00:04:04.080 --> 00:04:08.720 was making it every day. And then I started thinking I'd go to the mall and like, oh, do you want a new 44 00:04:08.720 --> 00:04:13.440 shirt? And it was at the gap and it was 30 bucks. And I was like, okay, well shoot, that's a whole 45 00:04:13.440 --> 00:04:18.800 shift. And I was like, what I work a whole shift. If someone just held up a shirt that I didn't need 46 00:04:18.800 --> 00:04:23.760 to do it. And I was like, I don't think I would. And so all of a sudden it started shifting how my 47 00:04:23.760 --> 00:04:29.600 buying happened because I started feeling the pain associated with what it would take if I had to 48 00:04:29.600 --> 00:04:35.280 do that before getting the thing I was going to buy. And it completely changed my buying behavior. 49 00:04:35.280 --> 00:04:42.800 And to be very clear, saving money won't make you money. But saving money allows you to have money 50 00:04:42.800 --> 00:04:47.440 and having money allows you to look further out. And when you look further out, you can take on bigger 51 00:04:47.440 --> 00:04:51.760 risks, which absolutely will make you more money. And when you're looking at the price of whatever 52 00:04:51.760 --> 00:04:55.840 the thing you're trying to buy is obviously when I was a teenager looking at a shirt, I was looking 53 00:04:55.840 --> 00:05:00.400 at, okay, I'm making six bucks an hour or shirts 30 bucks. But when you're an adult and you're making 54 00:05:00.400 --> 00:05:06.960 $100 an hour and you're looking at a $500 or $1,000 purchase, would you work two days in order to do 55 00:05:07.040 --> 00:05:14.240 that? I don't know. Would I? Probably not. And sometimes you think, hey, is what I work all day 56 00:05:14.240 --> 00:05:20.320 for two days to go out with the boys for three hours on Saturday? I'd probably like, guys, I'm not 57 00:05:20.320 --> 00:05:25.040 going to work for two days just to go have three hours of fun, right? That feel like I'd rather just 58 00:05:25.040 --> 00:05:29.840 not work the two days. And that was the thing is whenever I had the, well, I'd rather just not work 59 00:05:29.840 --> 00:05:35.520 than do that thing, then I was like, I shouldn't buy that thing. For example, when I was poor, I only 60 00:05:35.520 --> 00:05:40.000 spent cash. And so my easiest way of actually creating a budget was that I had a personal training 61 00:05:40.000 --> 00:05:44.880 client who paid me $2,000 a month in cash. And so 100% of my money that came in through the 62 00:05:44.880 --> 00:05:49.440 business and credit cards and everything else is just what went into my bank account. And the only 63 00:05:49.440 --> 00:05:53.600 thing I knew I could live on was it was inside of my wallet. And so as that got replenished and the 64 00:05:53.600 --> 00:05:59.040 thing is is that I'm so scared with money or I was so frugal with money that I would always make 65 00:05:59.040 --> 00:06:02.320 sure that I had more than that to make it for the next payment because sometimes the guy would 66 00:06:02.320 --> 00:06:05.840 take a day or two, you pay on Wednesday rather than a Monday or whatever. And I need to make sure 67 00:06:05.840 --> 00:06:10.480 that I have food for each wallet. Three, most people overestimate with it can accomplish in a year 68 00:06:10.480 --> 00:06:15.440 and they underestimate with it can accomplish in a decade. And every new employee that I have that 69 00:06:15.440 --> 00:06:20.560 walks into acquisition.com, the number one thing that they say they want is growth. And I have this 70 00:06:20.560 --> 00:06:24.560 talk with them, which is the 10 year million dollar contract. But it's less about the million 71 00:06:24.560 --> 00:06:31.280 dollars and more about take whatever your network is now and add a zero to it or add two zeros to it. 72 00:06:31.280 --> 00:06:35.680 You can accomplish that in a decade. If you look at the biggest companies in the entire world 73 00:06:35.680 --> 00:06:39.920 who were worth multiple billions from their inception until the time there were worth multiple 74 00:06:39.920 --> 00:06:46.080 billions, many times it's under 10 years. But it's still more than five, more than seven. And so 75 00:06:46.080 --> 00:06:52.960 you can accomplish life changing crazy amounts of wealth in a decade. And so if you could write a 76 00:06:52.960 --> 00:06:59.120 contract to yourself and say, I will make no money for 10 years. But on the 10th year, I will add a 77 00:06:59.120 --> 00:07:05.760 zero or two zeros or three zeros to my net worth. Would you do it? And if the answer is yes, 78 00:07:05.760 --> 00:07:10.320 which it almost invariably is with every person who comes into my business, then I say great, 79 00:07:10.320 --> 00:07:14.960 now act like it. And so if you knew that you would make this amount of money over that period of 80 00:07:14.960 --> 00:07:20.080 time, you would stop this obsession. Myself included, this is me giving my advice to my self who 81 00:07:20.080 --> 00:07:25.920 lost it twice. When I was able to shift to, okay, what would I have to do that would make it 82 00:07:25.920 --> 00:07:31.520 unreasonable that I don't 10x in 10 years. Then all of a sudden I started making very reasonable 83 00:07:31.520 --> 00:07:37.520 bets that I knew would compound unto itself over that period of time. And then winning became 84 00:07:37.520 --> 00:07:44.320 inevitable rather than a game of chance. And so oftentimes you have potential earning and then 85 00:07:44.320 --> 00:07:50.160 actualized earning. And usually as you're realizing the potential earning you have, you're usually 86 00:07:50.160 --> 00:07:55.280 losing out on your investing into that potential, right? You're realizing the potential. And that's 87 00:07:55.280 --> 00:07:59.040 kind of like the kid that learns one skill. And then immediately says, I'm going to start a 88 00:07:59.040 --> 00:08:04.000 business opportunity around this one skill that makes me $5,000 a month. Or they have this one skill 89 00:08:04.000 --> 00:08:10.320 and say, hey, this, this company is willing to pay me $100,000 a year to go do this skill where I 90 00:08:10.320 --> 00:08:15.360 have this other company that will give me a free internship where I could 10x my potential earning 91 00:08:15.360 --> 00:08:22.400 in three years. But I'm going to make $35,000 a year for the three years. Which one would you take? 92 00:08:22.400 --> 00:08:28.400 The problem is most people will take the $100,000 now and forego the investment in self. And 93 00:08:28.400 --> 00:08:34.240 that's the thing is we are the asset that we invest in. And the currency we invest into ourselves in 94 00:08:34.240 --> 00:08:39.440 is time, experience and skills, right? Skill is the outcome. The time and the effort is what we put 95 00:08:39.440 --> 00:08:43.280 into it to gain the experiences, which ultimately give us the skills. But if you're in an environment 96 00:08:43.280 --> 00:08:49.120 where you're not compounding your potential earning, then you're actually losing out long term, 97 00:08:49.120 --> 00:08:54.720 you're ripping up your million dollar or your 10x or 100x contract for a decade from now, 98 00:08:54.720 --> 00:08:58.560 so you can get the short, fast money today. And that's why in the early days when you have limited 99 00:08:58.560 --> 00:09:03.680 amounts of money, but lots of time and energy, instead of putting your money in the S&P 500, 100 00:09:03.680 --> 00:09:11.120 I like to say put in the S&P 500. Because the asset that is you will always beat the stock market. 101 00:09:11.120 --> 00:09:16.880 Number four, you should only have to get rich once. In other words, don't bet what you have in 102 00:09:16.880 --> 00:09:22.080 need for something you don't have and don't need. And some of the gravest mistakes I made 103 00:09:22.080 --> 00:09:26.720 manifested in, for example, me getting into a partnership that I shouldn't have gotten into, 104 00:09:26.720 --> 00:09:32.160 because I wanted even more faster. Now, when you get into a partnership, which is usually the time 105 00:09:32.160 --> 00:09:37.920 where you put the most risk on the table, one is you guarantee the largest decrease in your 106 00:09:37.920 --> 00:09:42.160 earning power. You pay with the most expensive thing you have, which is equity, to somebody else. 107 00:09:42.160 --> 00:09:48.160 And so people get obsessive about what they're, you know, 5%, 10% later when we're making money. 108 00:09:48.160 --> 00:09:52.880 But day one, they're like, all right, we cut the pie in half. Oh, we cut the pie into thirds. 109 00:09:52.880 --> 00:09:57.600 Right up front before anything's really happened. If you work with a partner or decide to partner 110 00:09:57.600 --> 00:10:00.880 with somebody, one of your friends, one of your coworkers, this is coming from thought you has 111 00:10:00.880 --> 00:10:05.920 nine failed partnerships before I met Layla. And then that has now worked and now I have successful 112 00:10:05.920 --> 00:10:11.200 partnerships. A partner needs to have one of these three things that you do not have. 113 00:10:11.200 --> 00:10:15.760 They either have to have money that you don't have. And then the clear contribution is that money. 114 00:10:15.760 --> 00:10:20.880 They need to have experience you don't have. And the clear contribution is that experience. 115 00:10:20.880 --> 00:10:24.960 Or number three, they have time and energy that you don't have. And the clear contribution is 116 00:10:24.960 --> 00:10:29.760 that time and energy. And so I added that second part on is that just because someone has experience, 117 00:10:29.760 --> 00:10:33.840 if they're not contributing it to the partnership clearly, then you're still not going to get the benefit 118 00:10:33.840 --> 00:10:37.280 from it. If they have the time and the energy, but it's not clearly to find how they're going to 119 00:10:37.280 --> 00:10:41.760 invest that time and energy into the things you both get a return, then it's not going to be a 120 00:10:41.760 --> 00:10:46.320 good partnership. And I've lost so much money in partnerships, especially early on. One of my two 121 00:10:46.320 --> 00:10:52.320 big losses was from a partner. And a big part of it was I was insecure. And I thought I just had 122 00:10:52.320 --> 00:10:56.160 to have somebody else because I was afraid to do it on my own. Real quick, if you're trying to make 123 00:10:56.160 --> 00:11:00.960 your first dollar online, you can go to school.com forward slash games. We've got a whole system that 124 00:11:00.960 --> 00:11:05.600 set up. It's a platform. You can start it for free. I've got instructional videos. I take a call 125 00:11:05.600 --> 00:11:09.920 every single week. And so if you do do that, you can hop on the call on Monday. And I'll say how 126 00:11:09.920 --> 00:11:14.880 do you just let me know that you're brand new. If you are a business owner and you're trying to 127 00:11:14.880 --> 00:11:18.880 scale and you're doing a million bucks a year and you want to go bigger, go to acquisition.com, 128 00:11:18.880 --> 00:11:23.920 hit scale. And we'd love to see if we could help you out at one of the workshops we run here in 129 00:11:23.920 --> 00:11:29.040 Vegas, which brings me number five. If you never learn to manage your time, you're never going to 130 00:11:29.040 --> 00:11:33.840 land or manage your money. And so the thing is is that all of us obviously have equal amounts of time 131 00:11:33.840 --> 00:11:39.200 that we give it, not necessarily in life, but at least every day. And so the people who get the best 132 00:11:39.200 --> 00:11:45.680 returns on their money are the ones who learn how to best invest their time. And so a big misconception 133 00:11:45.680 --> 00:11:51.920 on money is that money, in my opinion, is an encapsulated version of time. And since all of us trade 134 00:11:51.920 --> 00:11:56.960 time for the money that we get, then it means for each person money represents a certain amount of 135 00:11:56.960 --> 00:12:02.320 time. And the wealthier you get is just that the determination of money represents less time for 136 00:12:02.400 --> 00:12:09.760 you. And so for someone else, $100 may represent four hours. For a wealthier person, $100 may 137 00:12:09.760 --> 00:12:15.520 represent four minutes. And so it's a constant appraisal that you do on a regular basis looking on 138 00:12:15.520 --> 00:12:21.280 your calendar and saying, what things do I have here that I could trade my time for for more money? 139 00:12:21.280 --> 00:12:26.320 And so again, this video is about making money overall. I'm not saying that you can't spend time 140 00:12:26.320 --> 00:12:31.120 with your girl, but there is a transaction cost for that time. And as long as you're willing to 141 00:12:31.120 --> 00:12:35.760 make the trade, then trade it all day. But the bad trades are the one that when you actually think 142 00:12:35.760 --> 00:12:41.360 about it in terms of what it costs, you'd say I wouldn't do the trade. That's a bad deal. And so 143 00:12:41.360 --> 00:12:47.920 over time, if you continue to trade up, how much time you invest for what it makes you, you will 144 00:12:47.920 --> 00:12:54.000 always make more in your income year after year after year. Number six, check your bank account 145 00:12:54.000 --> 00:12:58.720 before you check social media first thing in the morning. And if it hurts you to check your bank 146 00:12:58.720 --> 00:13:05.280 account first thing, then you need to do it even more. Because for me, I started not knowing where 147 00:13:05.280 --> 00:13:11.680 my money was going. And so I had a friend who was like, dude, just look. And I honestly had anxiety 148 00:13:11.680 --> 00:13:16.480 looking at my bank account, looking at what money was going out and all that kind of stuff. And so 149 00:13:16.480 --> 00:13:22.080 I started making that habit and I had to confront it. But the crazy thing is, is as I started looking 150 00:13:22.080 --> 00:13:26.880 at my money, as I started paying attention to my money, my money started paying attention to me 151 00:13:26.880 --> 00:13:34.240 and hanging around. And so Peter Drucker said, what gets measured gets managed. And so one of the 152 00:13:34.240 --> 00:13:39.200 most fascinating things that I found with human behavior in any kind of change is that the first 153 00:13:39.200 --> 00:13:45.440 thing that you can do to improve any metric for any skill is to actually measure it. And so if you 154 00:13:45.440 --> 00:13:49.520 want to lose weight, if you weigh yourself every day, no matter how painful the number is, 155 00:13:50.080 --> 00:13:54.560 that intervention alone helps people lose weight. You don't even have to talk about diet. You 156 00:13:54.560 --> 00:13:58.880 don't have to tell someone to exercise. If they look at the scale every day, they become aware of 157 00:13:58.880 --> 00:14:03.520 it. And when we become aware of a problem, you start consciously or subconsciously making moves to 158 00:14:03.520 --> 00:14:07.280 change it. You have that hesitation before you put that food in your mouth. You have that hesitation 159 00:14:07.280 --> 00:14:10.880 before you take your wallet out when you're looking at your banking out every day. It doesn't matter 160 00:14:10.880 --> 00:14:16.000 what it is, whatever you're trying to improve, but look at it, confront reality, and then reality 161 00:14:16.000 --> 00:14:20.720 will start to improve. And if you're curious, how long do you still check your banking out every day? 162 00:14:21.200 --> 00:14:24.320 The honest truth is, I stopped checking when we have about 20 million bucks. 163 00:14:25.280 --> 00:14:30.640 And so that started when I had in the hundreds to thousand dollars and continue to check every day. 164 00:14:30.640 --> 00:14:36.880 And when I stopped checking it, it was then I realized my daily fluctuations in market movements 165 00:14:36.880 --> 00:14:43.840 and things like that across my assets. I basically wasn't able to really see it on a daily basis. 166 00:14:43.840 --> 00:14:48.000 So I had to start extending my time horizon for when I would check it. So it'd be monthly or 167 00:14:48.000 --> 00:14:52.640 quarterly that I started checking it. Because that way, at least I know I should have some movement 168 00:14:52.640 --> 00:14:58.720 upwards. And that is something that if you've done checking your bank account every single day for 169 00:14:58.720 --> 00:15:04.560 years, you start to already have developed some of those discipline skills, which then you can 170 00:15:04.560 --> 00:15:08.800 delay gratification of having saved money for a day to having saved money for a quarter. 171 00:15:09.520 --> 00:15:14.640 Number seven, learn how to make money before you start trying to learn how to make money, 172 00:15:14.640 --> 00:15:20.320 make money. So I see so many guys, especially young guys who are like, I've got a thousand bucks, 173 00:15:20.320 --> 00:15:23.760 how do I invest the thousand dollars? They're trying to figure out a way to get that thousand dollars 174 00:15:23.760 --> 00:15:28.240 to compound. They put into a compound and calculate it and they're like, man, if I get 50% 175 00:15:28.240 --> 00:15:32.800 returns for the next 40 years, I'm going to be a billionaire. But the thing is, is that one, 176 00:15:32.800 --> 00:15:36.880 it's most likely that you're going to buy a fucking dogecoin and then it's going to tank and then 177 00:15:36.880 --> 00:15:41.040 you're just going to lose your thousand dollars and be like, wow, think about this. I just worked 178 00:15:41.040 --> 00:15:46.000 for two weeks or one month to save that thousand dollars and I lost it in seconds. 179 00:15:46.720 --> 00:15:52.320 So alternatively, if you take that thousand dollars and you put it into how do I make more money, 180 00:15:52.320 --> 00:15:58.000 how do I actively improve the actions and skills that I have that will get you far more and that 181 00:15:58.000 --> 00:16:02.160 is where you invest the time rather than how do I make money, make money because let's be real, 182 00:16:02.160 --> 00:16:07.600 you don't have much. So take the money you have into the skill, the flow of making more money 183 00:16:07.600 --> 00:16:11.840 rather than trying to take this tiny thing and going from a 10% return to a 20% return 184 00:16:11.840 --> 00:16:15.920 because the hundred bucks extra that you yield on that thousand dollars, I promise you, 185 00:16:15.920 --> 00:16:21.920 if you learn how to add 50% to your skill set, it'll take whatever your annual earning is up by 50%. 186 00:16:22.560 --> 00:16:26.480 And that's going to be a hell of a lot more than 10. And that's assuming everything goes up 187 00:16:26.480 --> 00:16:31.760 this year, which one out of four years it doesn't. When you say you don't have time, just immediately 188 00:16:31.760 --> 00:16:38.320 think to yourself, I'm lying, this is bullshit because every single person has between 5 to 9 a.m. 189 00:16:38.320 --> 00:16:43.680 and 5 to 9 p.m. every day of the week, even if you have a 40 hour job, even if you're a full-time 190 00:16:43.680 --> 00:16:49.200 student because everybody has those eight hours per day. Now, the thing is that we're not willing 191 00:16:49.200 --> 00:16:53.120 to make the trade-offs because we have these things that make us comfortable. Cool, if you reframe 192 00:16:53.120 --> 00:16:57.200 that thing as the thing that makes me comfortable today is the thing that's going to make me uncomfortable 193 00:16:57.200 --> 00:17:02.960 for a decade. All of a sudden, the cost of that comfort goes up. And so then it flips to, 194 00:17:02.960 --> 00:17:07.760 if I can become uncomfortable for today, I can be comfortable for decades. And so then you can 195 00:17:07.760 --> 00:17:10.800 seek out those eight hours and say, you know what, I'm going to flip this thing. And here's the 196 00:17:10.800 --> 00:17:17.360 crazy part about work. Work makes you money in two ways. One, you work and you make money. And 197 00:17:17.360 --> 00:17:21.920 secondly, when you're working, you're not spending money. And so when you're starting out, you literally 198 00:17:21.920 --> 00:17:26.960 have a double effect. The money that you're making the whole way through is stacking up because there's 199 00:17:26.960 --> 00:17:31.680 no drains on it either. And so one of the biggest advantages you have is that you stay busy. 200 00:17:31.680 --> 00:17:37.600 One of the keys to investing is patience. What is patience? Patience is figuring out activities to do 201 00:17:37.600 --> 00:17:44.000 in the meantime. Think about it for a second. Unpack that. Patience is figuring out what to do in the 202 00:17:44.000 --> 00:17:50.800 meantime. So then if the goal is to get rich and we know that that takes time and it takes time for 203 00:17:50.800 --> 00:17:57.120 money to compound and grow, then what you do in the meantime is that you work so that you have 204 00:17:57.120 --> 00:18:02.560 even more money to invest and that money has the time to invest and compound while you're working. 205 00:18:02.560 --> 00:18:08.000 And I am so passionate about this because this isn't something that I didn't do. Right? Like when I 206 00:18:08.000 --> 00:18:12.320 had my job in the beginning, I just wasn't really taking the time that I should have. And then I was 207 00:18:12.320 --> 00:18:16.080 like, you know what, I don't want to do this thing forever. I got to get ahead, but I couldn't stop 208 00:18:16.080 --> 00:18:21.680 doing my job. So I started spending my mornings and my evenings every day and both weekend days 209 00:18:21.680 --> 00:18:26.080 working on what I was going to do next. And in the beginning, that was studying for the GMAT because 210 00:18:26.080 --> 00:18:29.520 I thought business school was going to be the next move. But after studying for the GMAT and 211 00:18:29.520 --> 00:18:33.760 crushing the test, I came to another realization which was, I'm going to go to business school because 212 00:18:33.760 --> 00:18:39.040 I want to start a business. Well, you know what? It's going to cost me less than two years and $180,000 213 00:18:39.840 --> 00:18:45.040 plus what I didn't make during the two years of not working. I could probably net $10,000 214 00:18:45.040 --> 00:18:49.360 a year of income, which is with the average business school person graduated with when I was looking 215 00:18:49.360 --> 00:18:53.920 at business school. And I was like, I think I could get to $10,000 a month. If I had two years to work 216 00:18:53.920 --> 00:18:58.000 and didn't spend $180,000 and I took that money and just put it into a business, now you're like, 217 00:18:58.000 --> 00:19:01.920 well, you didn't even have $180,000. You're damn right. I didn't. I was able to save up 50. And I was 218 00:19:01.920 --> 00:19:06.720 like, I think with this 50, I'll be able to spend it to learn enough to make $10,000 a month. And that's 219 00:19:06.720 --> 00:19:11.840 what I did. Nine, if you don't know how you can lose money in something, then you're going to lose it. 220 00:19:11.920 --> 00:19:16.320 Think about this for a second. If something looks amazing and you're like, dude, there's no way I can 221 00:19:16.320 --> 00:19:20.880 lose money on this. You're absolutely going to lose your ass because of how little you actually know. 222 00:19:20.880 --> 00:19:26.960 And so you have to figure out one, what is my downside and all the different ways that downside can 223 00:19:26.960 --> 00:19:32.800 occur and then attach a reasonable likelihood that that happens and then probably multiply it by three 224 00:19:33.520 --> 00:19:37.920 because whenever you have your rose colored glasses on, you're an entrepreneur or you want to be 225 00:19:37.920 --> 00:19:42.400 an entrepreneur. One of the quintessential traits of entrepreneurship is optimism. We are 226 00:19:42.400 --> 00:19:46.800 optimists. We think it's all going to work out and you have to have that level of optimism to start. 227 00:19:46.800 --> 00:19:52.160 But when you start, you can't continue to have that optimism around every other opportunity 228 00:19:52.160 --> 00:19:55.680 because then you are going to lose your ass because you're going to be split between multiple 229 00:19:55.680 --> 00:20:02.480 things. And so if you don't know how you can lose money, you absolutely will because it just is 230 00:20:02.480 --> 00:20:11.360 a index of how little you know. 10. The biggest cost that you have is ignorance. So every single 231 00:20:11.360 --> 00:20:14.720 month, you've got your rent, you've got your food, you've got your clothes, you got your car, 232 00:20:14.720 --> 00:20:19.680 you got whatever else you spend. And you think that's my fixed costs. Years ago, I was sitting in the 233 00:20:19.680 --> 00:20:23.760 audience and I saw a man write a million dollars on a whiteboard and he called someone from the 234 00:20:23.760 --> 00:20:28.400 audience. He said, how much do you make per year? And they said $50,000 a year and he said, would 235 00:20:28.400 --> 00:20:32.720 you like to make a million dollars a year? And the person said yes. And then he put a minus sign and 236 00:20:32.720 --> 00:20:38.000 he said, did you know that it's costing you $950,000 per year to not know how to make a million 237 00:20:38.000 --> 00:20:45.040 dollars a year? And it was such a light bulb moment for me that I realized that the cost of ignorance 238 00:20:45.040 --> 00:20:49.840 is the difference between what your goals are and what you have today. Because if you knew 239 00:20:49.840 --> 00:20:56.000 how to achieve your goals, the difference is the value of that education. And conversely, 240 00:20:56.000 --> 00:21:02.320 the difference is the cost of that debt of ignorance. And so the number one priority in my life 241 00:21:02.320 --> 00:21:08.240 has always been to pay down ignorance as fast as I possibly could using whatever currency I needed to. 242 00:21:08.240 --> 00:21:12.800 So if that was relational capital, that means using my network or doing favors for people or 243 00:21:12.800 --> 00:21:16.640 paying money, which is the least efficient way of doing it, I would try and find a way that I could 244 00:21:16.640 --> 00:21:20.400 pay down ignorance to achieve the things that I wanted. So I could get the information so I could 245 00:21:20.400 --> 00:21:26.400 get the learning. When I started, I paid to get into rooms. I paid $25,000, $35,000 and you're like, 246 00:21:26.400 --> 00:21:30.480 wait, I don't have that right now. I get it. Well, you pay $10,000 was the first thing I ever bought 247 00:21:30.480 --> 00:21:34.000 that was information based. That's what I was the first thing I ever invested in. And how I was 248 00:21:34.000 --> 00:21:37.760 able to do that? Because I had saved for two years and I had saved 50 grand up. And so for me, 249 00:21:37.760 --> 00:21:42.800 I was like, okay, this is the direction I'm going in. I'm an invest in learning. And when I got in 250 00:21:42.800 --> 00:21:47.280 that room, the first room I was in was a gym owner room. And I didn't have a gym. And I paid 251 00:21:47.280 --> 00:21:51.440 to be in that room so I could start the gym the right way. When I paid to the $25,000 room, 252 00:21:51.440 --> 00:21:55.280 it was an internet marketing room. And guess what? I didn't have an internet marketing business. 253 00:21:55.280 --> 00:21:58.240 But I paid there so I could try and learn how to do it the right way rather than try and start 254 00:21:58.240 --> 00:22:02.560 it the wrong way and have to fix it. And so I think a lot of people wait too long to try and learn. 255 00:22:02.560 --> 00:22:07.680 I always want to grab my future and pull it towards me. And so I was willing to spend as much 256 00:22:07.680 --> 00:22:11.920 money as I had available to me to make those bets because it was a better on me. And I knew I would 257 00:22:11.920 --> 00:22:16.880 never lose that. You can't lose you. You always have diamond hands on you. Like till the day you die, 258 00:22:16.880 --> 00:22:21.840 you've got you. And so the thing is about investing in education is that sometimes the lessons 259 00:22:21.840 --> 00:22:26.160 you learn aren't the lessons you expect to learn, but you learn them nonetheless. And so sometimes 260 00:22:26.160 --> 00:22:29.680 you go into an education thing and you don't get what you thought, but you still get something, 261 00:22:29.680 --> 00:22:33.360 and it was still more than what you paid. And so when I went into those rooms, I had already used 262 00:22:33.360 --> 00:22:36.880 up all my money to get in the room. So I was like, okay, what else do I have? And so at the time, 263 00:22:36.880 --> 00:22:41.600 I knew how to sell. And so I just went to every single person in the room was like, can I help you 264 00:22:41.680 --> 00:22:47.120 sell stuff? And so they'd be like, well, sure, my sales team sucks, or sure, my, my script sucks, 265 00:22:47.120 --> 00:22:50.720 or sure, my offer sucks, or I don't know how to overcome these objections. And so I would spend an 266 00:22:50.720 --> 00:22:55.200 hour, two hours, three hours on the phone with these people training their teams, writing scripts, 267 00:22:55.200 --> 00:23:00.000 and they were like, dude, thanks so much. This is way, I can't believe you did all this. And the 268 00:23:00.000 --> 00:23:08.480 thing is is that if you're going to pay for help from someone, pay in full. Don't half ass a free 269 00:23:08.480 --> 00:23:13.600 gift. And so if you're good at something, you're good at a skill, you're an accountant. You don't 270 00:23:13.600 --> 00:23:19.040 do one page of someone's taxes. If you're going to do a favor, you do the whole thing. You treat them 271 00:23:19.040 --> 00:23:23.920 like they're a paying customer, and then they will respond as though you have paid them. And so it 272 00:23:23.920 --> 00:23:27.680 will be like you've given them money, and then you will get that reciprocity. And at the time when I 273 00:23:27.680 --> 00:23:31.920 did those favors for all those people, I didn't know what I was going to ask for. I just knew that I 274 00:23:31.920 --> 00:23:36.320 would need someone's help in the room, and I'd rather have more phone numbers I could call for help 275 00:23:36.320 --> 00:23:41.920 that owed me one than none. And when I wanted to make a webinar, I called one of the people who's 276 00:23:41.920 --> 00:23:45.680 good at webinars. When I wanted to run ads, I called the guy who's really good at running ads. 277 00:23:45.680 --> 00:23:50.000 When I wanted to figure out funnels and landing pages of stuff, I called the guy who was really 278 00:23:50.000 --> 00:23:53.760 good at funnels and landing pages, because each of those guys wasn't good at what I was good at. 279 00:23:53.760 --> 00:23:58.400 And so we're able to barter, which by the way, still to this day is the most efficient form of trade. 280 00:23:58.400 --> 00:24:06.240 Because Uncle Sam don't take any piece of it. For us or them, everybody wants 11. There's two types 281 00:24:06.240 --> 00:24:09.920 of things that you can learn. And so if you're trying to pay down ignorance, you got to know what 282 00:24:09.920 --> 00:24:16.000 you're buying. So you can learn about something, something that exists that you didn't know existed, 283 00:24:16.000 --> 00:24:21.120 and then you can learn how to do something. And so one is called declarative knowledge, knowledge 284 00:24:21.120 --> 00:24:25.520 of existence. The other is called procedural knowledge, which is knowing how to do it. And so if I 285 00:24:25.520 --> 00:24:29.920 explained to you that private equity exists, and this is how you can buy package and sell a business 286 00:24:30.000 --> 00:24:36.080 for a lot of money, now you know about it, which is a prerequisite for learning how to do it. 287 00:24:36.080 --> 00:24:41.760 And so when you buy into access to networks to people to relationships, the primary thing that 288 00:24:41.760 --> 00:24:46.720 you're learning is learning about things that exist. They're going to tell you tax strategies, 289 00:24:46.720 --> 00:24:51.600 investment strategy, marketing strategy, sales strategies, business models that you haven't heard of. 290 00:24:51.600 --> 00:24:55.840 That is what you learn there. But if they tell you those things, you leave and you get excited, 291 00:24:55.840 --> 00:25:00.640 but then you're like, well shoot, how do I do it? Which is the second thing that you learn how to do, 292 00:25:00.640 --> 00:25:05.360 which is the how part. And so when you're going into any kind of investment, whether you're investing 293 00:25:05.360 --> 00:25:09.360 time, you're investing trade, you're doing some work for someone so they do work for you back, 294 00:25:09.360 --> 00:25:14.560 or you're investing money, you better be sure what you're buying. And the interesting thing about 295 00:25:14.560 --> 00:25:19.280 those two types of knowledge is that the declarative knowledge tends to teach you things that you 296 00:25:19.280 --> 00:25:25.280 didn't know existed. It's the unknown unknowns. That is why some of these are the biggest breakthroughs 297 00:25:25.280 --> 00:25:28.400 when you get into those rooms with someone making ten or a hundred times more than you. They see 298 00:25:28.400 --> 00:25:33.280 the world in a different way. Whereas when you go for how to, it's more predictable what you're 299 00:25:33.280 --> 00:25:37.760 going to get because you're specifically trying to learn how the skills you know it exists and you 300 00:25:37.760 --> 00:25:42.480 just need to clarify the steps to getting there. And so just delineating what you're trying to learn 301 00:25:42.480 --> 00:25:47.520 will help you actually learn it. So the first time I learned declarative knowledge was that Facebook 302 00:25:47.520 --> 00:25:53.040 ads existed, that was in 2013. And so I learned how they how they worked and I learned just enough 303 00:25:53.120 --> 00:25:57.120 to make them work. So I learned declarative knowledge that they existed and I learned how to do them 304 00:25:57.120 --> 00:26:03.200 in one weekend. Super valuable. Now I was able to ride that skill set for a couple years until I was 305 00:26:03.200 --> 00:26:07.120 like, you know what, I need to learn how to do this at a bigger scale. I wanted to go national 306 00:26:07.120 --> 00:26:10.560 with started gym lunch to the turn rounds. And so I was like, I need somebody because I had only 307 00:26:10.560 --> 00:26:15.120 run local ads, which by the way are much easier than national style ads. And so I tried to go all 308 00:26:15.120 --> 00:26:19.680 around asking people for help. And at this point, I'd probably used up the relational capital that I 309 00:26:19.840 --> 00:26:23.680 had before. So I called a bunch of agencies. All of them said they were going to charge me too much 310 00:26:23.680 --> 00:26:28.080 money that I could afford. And then finally, I just asked one guy, hey, instead of your monthly rate 311 00:26:28.080 --> 00:26:32.240 of $5,000 a month, which I couldn't even come close to affording at the time, I was like, can I just 312 00:26:32.240 --> 00:26:36.880 pay you per hour? Now, of course, he said, I don't trade my time for money, except of course, 313 00:26:36.880 --> 00:26:41.520 he works over time and then he gets money later. But sure, anyways, he doesn't trade time for money. 314 00:26:41.520 --> 00:26:45.120 And I said, it's America. Everything's got a price. And he said, you know what, 315 00:26:46.080 --> 00:26:51.200 750 an hour, I'll do it. And I was like, done. Now mind you, 750 an hour is still a ton of money 316 00:26:51.200 --> 00:26:55.600 for me. And so I showed up like it was Harvard on steroids for these calls because I would prep for 317 00:26:55.600 --> 00:26:59.600 the call. I had my notes out. I recorded it. I was like, I had two people there and be like, 318 00:26:59.600 --> 00:27:05.840 make sure I don't miss anything. Right. And so I would go and I had him first document the process 319 00:27:05.840 --> 00:27:12.640 of what he did to run ads as though he were me. Then I had him demonstrate it. So he clicked the 320 00:27:12.640 --> 00:27:16.640 buttons so I could see what he was doing. And I had him stop and explain to me each of the steps so 321 00:27:16.640 --> 00:27:20.880 I could put it in my little checklist too. And then finally, I duplicated in front of him, 322 00:27:20.880 --> 00:27:25.600 which means document, demonstrate, duplicate. I then did in front of him to make sure that I was 323 00:27:25.600 --> 00:27:29.680 doing it right. And so once I did it right and I did it right multiple times in a row and I didn't 324 00:27:29.680 --> 00:27:34.800 need him to correct me while I was doing it, that's when I had mastered the skill. It took me eight 325 00:27:34.800 --> 00:27:42.160 sessions. So it took me eight hours and whatever that is, time 750 in order to learn 12. A watch 326 00:27:42.160 --> 00:27:47.680 isn't going to replace work. A Rolex isn't going to replace reality. And so what happens a lot of 327 00:27:47.680 --> 00:27:52.400 times when you're coming up is that you want to get status, right. You feel downtrodden, you feel like 328 00:27:52.400 --> 00:27:56.800 no one respects you. And that's normal as a young man. That's what you do. You don't have any status. 329 00:27:56.800 --> 00:28:01.600 That's what you come to the world as and you got to go make it. And so the thing that you want to 330 00:28:01.600 --> 00:28:06.800 do early on is get status as fast as possible. The thing is a lot of times you trade short-term status 331 00:28:06.800 --> 00:28:12.080 at the expense of long-term. And so as somebody who has lots of young men in my audience and middle 332 00:28:12.080 --> 00:28:17.920 age men in my audience, you'll never impress someone who's wealthier than you with assets. 333 00:28:18.880 --> 00:28:25.040 You'll only impress people below you. So you have the wrong target audience. Because to impress poor 334 00:28:25.040 --> 00:28:30.880 people, you outspend them. To impress rich people, you outwork them. And once I understood this, 335 00:28:30.880 --> 00:28:36.720 I was like, oh, the guys who are at the top of the game give me respect because they know I'm 336 00:28:36.720 --> 00:28:41.520 a future one of them because they know when they were my age, they double down on the hustle, 337 00:28:41.520 --> 00:28:47.120 not the highlight reel. And that overspending on status happens at every level. So in the beginning, 338 00:28:47.120 --> 00:28:52.480 it's a watch, right. And a little bit later, it might be a car payment. And a little bit later, 339 00:28:52.480 --> 00:28:56.720 it might be a really big expensive car payment. And then it might be a really big condo. And then 340 00:28:56.720 --> 00:29:01.360 it might be a really nice house. And then it might become a yacht. And then becomes a jet. And the 341 00:29:01.360 --> 00:29:05.680 thing is is that you add zeros to it. But again, you only impress the people underneath of you, 342 00:29:05.680 --> 00:29:10.480 not the people above you. And if you want to impress the people underneath of you, by all means do it. 343 00:29:10.480 --> 00:29:17.360 But know that that's what you're about. By time like a rich person, by stuff like a poor person. 344 00:29:18.080 --> 00:29:24.080 And so when you're thinking about time being the most valuable thing, if you've already dedicated 345 00:29:24.080 --> 00:29:29.200 your stuff to working and earning an income and learning the skills, then you just want to pour as 346 00:29:29.200 --> 00:29:34.960 much time into that as you can. And so fundamentally, you're buying your time back, your low cost time, 347 00:29:34.960 --> 00:29:40.000 or low income time. So it's prep and food, go in grocery shopping, cleaning your house, 348 00:29:41.520 --> 00:29:48.080 whatever else you do with more income earning time. I remember the first time I closed a $500 349 00:29:48.080 --> 00:29:54.320 sale at my gym, I realized that that sale took me 30 minutes. And I knew that for me to buy groceries 350 00:29:54.320 --> 00:30:00.880 for the whole month, four times would take me $500 and far more than 30 minutes. And so I thought 351 00:30:00.880 --> 00:30:07.520 to myself, my God, if all of that time I was grocery shopping and food prepping and cleaning up 352 00:30:07.520 --> 00:30:13.120 after myself. And then doing laundry, if all of that time, I could just sell more in a couple hours, 353 00:30:13.120 --> 00:30:17.760 I could do all of that stuff for free. And my poor mind was like, hey, that's wasteful, you could 354 00:30:17.760 --> 00:30:23.920 be doing that stuff on your own. But you buy time like your rich, you spend money on stuff like 355 00:30:23.920 --> 00:30:28.800 your poor. So buy time, not stuff, because when you buy time, you can replace the money you bought 356 00:30:28.800 --> 00:30:36.560 it with and some. Let me put some real numbers to this. So the average American spends $1,500 357 00:30:36.560 --> 00:30:43.440 a month on 96 hours of work. And that breaks down roughly to cleaning their house, 358 00:30:44.320 --> 00:30:51.440 cleaning their clothes, buying food, preparing food, and cleaning food. I'm not even going to get 359 00:30:51.440 --> 00:30:56.080 into the four hours a day that the average person spends on social media and watching television. 360 00:30:56.080 --> 00:30:59.680 You're going to keep doing that. So I'm not going to try to convince you not to. But if you just 361 00:30:59.680 --> 00:31:04.240 replace those things that you probably don't want to do, it costs about $1,500 per month. And so 362 00:31:04.240 --> 00:31:09.840 as long as you make more than $15 per hour, because it costs about 96 hours to replace those 363 00:31:09.840 --> 00:31:16.000 activities, which means if I can replace 96 hours of work for $1,500, and it's also 96 hours of 364 00:31:16.000 --> 00:31:21.040 draining work, like it expands energy. It's not like you just sit there for 96 hours. You're actually 365 00:31:21.040 --> 00:31:26.000 getting actively tired from doing that stuff. If you took that same thing and if you make more 366 00:31:26.000 --> 00:31:32.480 than $15 per hour in your active job, it makes sense. It's the logical decision for you to buy that 367 00:31:32.480 --> 00:31:37.760 and then go make more because you're also going to make money twice. Not only are you going to 368 00:31:37.760 --> 00:31:43.600 save the time and then work and make more, but you also get better at your job because all of those 369 00:31:43.600 --> 00:31:48.800 extra hours aren't just making you more money. You're also becoming more skilled. So you get better 370 00:31:48.800 --> 00:31:55.120 faster. And so if I have a year-long guy where he spends $1,500 a month to replace all of those things, 371 00:31:55.120 --> 00:31:59.680 at the end of that year, not only does he have more money at the end of the year, but because he 372 00:31:59.680 --> 00:32:07.440 had extra 100 hours of high energy time that he didn't have to spend per month, he's getting 50% 373 00:32:07.440 --> 00:32:13.120 better per year. And so that assumes that he doesn't get rewarded in his work for getting better, 374 00:32:13.120 --> 00:32:18.720 which by the way, in reality, you typically do as long as you ask. Who you compare yourself to, 375 00:32:18.720 --> 00:32:23.840 not who you spend your most time with will be the highest predictor of how much you make. And so 376 00:32:23.840 --> 00:32:28.400 we are motivated by the things that we lack. And so if you are very hungry, it's because you lack 377 00:32:28.400 --> 00:32:33.600 food. If you lack sleep, you're very tired. You're very motivated to sleep. And so if you want to 378 00:32:33.600 --> 00:32:39.600 be motivated to make money, it's not enough to not have money. You have to have a desire to make 379 00:32:39.600 --> 00:32:46.160 a lot more money. And the strongest way to create that desire is to visually see the people who are 380 00:32:46.160 --> 00:32:51.280 making far more than you. And so it's about who you compare yourself to, not who you spend time 381 00:32:51.280 --> 00:32:55.200 with. Fundamentally, the richest man in the world only spends time with people poor than him, 382 00:32:55.200 --> 00:32:59.280 but he continues to get richer because he's comparing himself to the future version of himself. 383 00:32:59.280 --> 00:33:03.360 That's his reference point. That's his reference grip. And when he start out, there's real people. 384 00:33:03.360 --> 00:33:08.800 As you evolve, it becomes imaginary. I heard this quote from one person to another when I was walking 385 00:33:08.800 --> 00:33:15.920 through the street and they was talking about buying something that was a no return investment. 386 00:33:15.920 --> 00:33:21.840 Let's call it a big toy. And he said, there will always be time to make money later. And I remember 387 00:33:21.920 --> 00:33:25.920 hearing that and thinking, that's what someone who's poor says. 388 00:33:29.280 --> 00:33:35.440 And so to be clear, I think if you want to enjoy life, by all means do it. This video is about 389 00:33:35.440 --> 00:33:40.240 making more money. That's the stated objective. And so that's what I'm talking about. And so 390 00:33:40.240 --> 00:33:46.720 the idea that you are going to spend now work later is the fundamental crux of poverty. 391 00:33:47.680 --> 00:33:52.960 And so you have to break that with all your heart. And when you have those people around you, 392 00:33:52.960 --> 00:33:58.720 and this was a toy, but it could be, let's go out. It always comes under the guise of Yolo. We 393 00:33:58.720 --> 00:34:05.600 have to live life. But everyone who says that assumes that getting better and learning is not 394 00:34:05.600 --> 00:34:13.600 life and is not living. And for me, the purpose of my life is to learn as much as I can and pay 395 00:34:13.600 --> 00:34:18.160 down ignorance as much as I possible can and squeeze the last drop of potential out of me 396 00:34:18.160 --> 00:34:23.280 that I can. And the way that I do that is through learning. And so for every person that asks you 397 00:34:23.280 --> 00:34:29.040 to sacrifice working now so that you can have fun now, just make sure you know the trade you're 398 00:34:29.040 --> 00:34:34.480 making. I'll be real with you. There's no perfect way to live your 20s or even your 30s. 399 00:34:34.480 --> 00:34:44.000 You either end up an under-skilled 30-year-old or 40-year-old or an under-lived 30-year-old or 40-year-old. 400 00:34:44.000 --> 00:34:49.920 And so fundamentally, it's not either or, but knowing the trade-off and living with the consequences 401 00:34:49.920 --> 00:34:55.680 because you can't do them over. And on a personal note, I sacrificed or said differently, 402 00:34:55.680 --> 00:35:03.840 invested my 20s in order to have lots of skills and under-lived. But in that same time period, 403 00:35:04.480 --> 00:35:11.440 I built to where I am now. And I genuinely am very happy with where I am now in life. 404 00:35:11.440 --> 00:35:15.680 And I would not redo those years to have, quote, lived more. Because the real secret is, 405 00:35:16.320 --> 00:35:22.720 as I was doing it, I loved the game. And so some of the best moments of my life when I look back 406 00:35:22.720 --> 00:35:26.080 were some of the moments that I felt like I was struggling the most because it was when I 407 00:35:26.080 --> 00:35:30.640 underwent the most growth. And so it's interesting because the pain that you go through in the moment 408 00:35:30.640 --> 00:35:34.640 often becomes the purpose that you look back on in your life. And so the idea that we want to 409 00:35:34.640 --> 00:35:39.440 avoid pain so that we can live today, I think, conflates reality because when you look back on your 410 00:35:39.440 --> 00:35:43.040 life, a lot of times, those are the things that define you. And so we should be seeking those out, 411 00:35:43.040 --> 00:35:47.840 not running away from them. So if you're not sure who you compare yourself to versus who you 412 00:35:47.840 --> 00:35:53.520 spend time with, when you're about to make a big decision, the people who come up in your mind, 413 00:35:53.520 --> 00:35:57.680 who you're weighing their opinions on your decision, those are your reference group people. 414 00:35:58.160 --> 00:36:03.920 The people who's opinion you care about. And so if all your friends, for example, are billionaires, 415 00:36:03.920 --> 00:36:08.080 and they all sacrifice their 20s, got rid of their friends, got rid of their material belongings, 416 00:36:08.080 --> 00:36:11.440 spent all their time working for free so that they could learn this big skill set and then 417 00:36:11.440 --> 00:36:15.680 double down in their late 20s and then made it big by the time they were in their 30s and 40s, 418 00:36:16.320 --> 00:36:20.560 those people, if that was your reference group, if you're thinking about leaving home, 419 00:36:20.560 --> 00:36:24.160 what do you think that reference group is going to say? For sure. And because of that, 420 00:36:25.040 --> 00:36:28.640 you're out the door. And so whenever you have these frictional moments where you are like, 421 00:36:28.640 --> 00:36:33.920 I think I should do this, but whoever that person is, whoever that voice is, if they don't have 422 00:36:33.920 --> 00:36:40.000 what you want, don't listen to what they say. Only listen to other people's opinions about your life 423 00:36:40.000 --> 00:36:46.800 if their dreams for you are bigger than yours. If they're not, disregard. Invest, then spend the rest. 424 00:36:47.520 --> 00:36:52.560 So the idea is that you invest first and then spend what's left over. And so an interesting thing 425 00:36:52.560 --> 00:36:57.520 is that Switzerland has the highest per capita millionaires in the world without having the highest 426 00:36:57.520 --> 00:37:02.800 GDP or even GDP per capita. And so how are they able to do that? That means that they have different 427 00:37:02.800 --> 00:37:08.160 rules around money, which is what this video is about. And so if we adopt those rules, we can get 428 00:37:08.160 --> 00:37:12.480 those outcomes, which means these are just decisions that we get to make. And the easiest way to do 429 00:37:12.480 --> 00:37:17.920 that is you take what you need off the top and then you spend the rest on what you want. And so 430 00:37:18.560 --> 00:37:23.520 it comes down to saying that you need your future, you need your future self to be bigger than 431 00:37:23.520 --> 00:37:30.560 your current self today. And so you invest first and then you spend the rest. And so the way that I 432 00:37:30.560 --> 00:37:36.320 like to think about this is 0.16. This is how we operationalize this, which is automated investing 433 00:37:36.320 --> 00:37:42.160 and then create friction around spending. And so you want to take the money off before you see it. 434 00:37:42.160 --> 00:37:45.840 If your job, for example, has a way that they can automatically skim off your paycheck and put 435 00:37:46.000 --> 00:37:51.280 it into some sort of investment stuff, do it. If they don't have that, have one of these apps that 436 00:37:51.280 --> 00:37:56.080 does segmentation or has multiple bank accounts that you can say, this automatically goes here, 437 00:37:56.080 --> 00:38:01.760 this automatically goes here. And I don't touch this. And if you want to get real crazy, the advanced 438 00:38:01.760 --> 00:38:08.560 version of this is that as you make more money, you keep what you're living, the spend the rest part 439 00:38:08.560 --> 00:38:13.040 instead of making it a percentage, make it a fixed amount. And then as you make more, you're just 440 00:38:13.040 --> 00:38:17.920 investing more and more and more into the future. Now you're like, well, how do I invest in the future 441 00:38:17.920 --> 00:38:22.640 if I'm just starting out? The future is you. But you're making sure that when you're investing that 442 00:38:22.640 --> 00:38:26.560 money, you know whether you're buying declarative knowledge or you're buying procedural knowledge. 443 00:38:26.560 --> 00:38:30.880 You're learning about stuff that you need to learn or you're learning how to do it. And the longer 444 00:38:30.880 --> 00:38:38.400 you do this, the easier it gets. For the record, I have zero Lamborghinis, zero Rolexes, zero jets. 445 00:38:38.640 --> 00:38:47.760 While also being able to buy multiple of these every single month. And so the idea is you start to 446 00:38:47.760 --> 00:38:53.760 become addicted to getting good. And once you get that first little reward of seeing an investment 447 00:38:53.760 --> 00:38:58.720 that you made in yourself, start paying off, you see your income go up, you start making more money, 448 00:38:58.720 --> 00:39:04.000 you're like, oh my god, this game is awesome. And so that flow of investment that comes to you 449 00:39:04.720 --> 00:39:09.760 is one of the best games that you want to win for yourself. You want to just keep seeing, 450 00:39:09.760 --> 00:39:15.840 keep making cash flow PRs, keep making that investment account PR and hit records in that account. 451 00:39:15.840 --> 00:39:19.920 And if you get addicted to that game, if you can just do that from everything in this video, 452 00:39:19.920 --> 00:39:26.720 you've already won. And so you want to automate deposits and manualize withdrawals. So everything 453 00:39:26.720 --> 00:39:33.040 that is automatic in terms like your rent, you want to write it as a check. If you or drop it off 454 00:39:33.040 --> 00:39:37.520 as cash, if you have payments that you make like a car payment as much as you're like, wait, 455 00:39:37.520 --> 00:39:42.480 this is going to cost time. The value that you get back for knowing exactly where you spend your 456 00:39:42.480 --> 00:39:47.200 money is going to make you more money than the one hour a month that you have to pay your bills. 457 00:39:47.200 --> 00:39:54.160 That is a promise. And so that may also mean if you make it difficult to buy, well then maybe you 458 00:39:54.160 --> 00:39:58.640 delete some of the apps on your phone. Maybe you don't save your credit cards on the sites that 459 00:39:58.640 --> 00:40:03.680 you tend to spend money on. You want to make it as hard as you can to spend money and make it 460 00:40:03.680 --> 00:40:10.560 as easy as possible to stack it. Number 17, it's easier to make a million dollars than it is to 461 00:40:10.560 --> 00:40:15.920 make a hundred thousand dollars. And let me explain. If I told you to go down the block, you would go 462 00:40:15.920 --> 00:40:22.240 at a certain speed. If I said, go as fast as you possibly can. At some point, you'd run and then 463 00:40:22.240 --> 00:40:25.760 you'd improve your form and you get better footwear and then you change your clothes. But at some 464 00:40:25.760 --> 00:40:30.400 point, you wouldn't be able to run any harder or any faster to get there. But if I said, I need 465 00:40:30.400 --> 00:40:36.960 you to go five blocks. You might be like, huh, okay, now some people will then try to walk or run 466 00:40:36.960 --> 00:40:45.040 that. But the smart cookie then says, huh, I could take a car and I would go a hell of a lot faster. 467 00:40:45.040 --> 00:40:50.240 And if I'm speeding in my car, I'll probably get to the fifth block before the other guy gets the 468 00:40:50.240 --> 00:40:57.200 end of the first block. And so the magic of thinking bigger is that you change your solution 469 00:40:57.200 --> 00:41:02.960 set. Meaning, you use different tools to accomplish the objective. The reason a hundred thousand 470 00:41:02.960 --> 00:41:07.680 dollars per year is the hardest amount of money to make is because it assumes for most people 471 00:41:07.680 --> 00:41:12.240 that they will trade their time in terms of hourly wages or salary and traditional work in order 472 00:41:12.240 --> 00:41:16.400 to get it. And so they have to spend all of their time in order to make the hundred thousand dollars. 473 00:41:17.200 --> 00:41:22.480 But if I said make a million or even ten million before the world explodes, you would know that 474 00:41:22.480 --> 00:41:28.080 you would have to use a different way of solving that problem. And so the reason it's easier to make 475 00:41:28.080 --> 00:41:34.480 a million dollars or ten million dollars is because you can do it in less time with more skill. 476 00:41:36.080 --> 00:41:40.960 If you start solving for the skills required to make a million or ten million dollars, 477 00:41:41.680 --> 00:41:47.280 you don't want to love money. You want to learn to love making money. So there's two misconceptions 478 00:41:47.280 --> 00:41:52.720 and then one truth around this. The first misconception is money is the root of all evil. And then 479 00:41:52.720 --> 00:42:00.640 that obviously is a quote from the Bible, 1 Timothy 6 10. The 201 version, someone says, no, it's not 480 00:42:00.640 --> 00:42:04.880 money that's the root of all evil. It's the love of money that's the root of all evil. But that's 481 00:42:04.960 --> 00:42:13.040 just the 201 version. The actual translation, there's five translations for it. And four of the five 482 00:42:13.040 --> 00:42:22.480 are the love of money is the root of all kinds of evil, meaning if you desire money more than 483 00:42:22.480 --> 00:42:29.040 anything else, then you will commit the other sins in order to attain it. And so the idea is that 484 00:42:29.040 --> 00:42:36.000 it's only a pathway that has a high likelihood of causing you to do things that are unethical or 485 00:42:36.000 --> 00:42:42.880 immoral. And so there's this huge, terrible paradigm in society that money is somehow good or bad. 486 00:42:43.840 --> 00:42:50.320 It is just potential energy. It's just bottled time. And that bottled time can build bombs. That 487 00:42:50.320 --> 00:42:54.960 bottled time can build hospitals. It can build wells and can build schools. It can make YouTube 488 00:42:55.040 --> 00:43:01.680 videos that educate. And so the idea that you're afraid to make money means that you're afraid of 489 00:43:01.680 --> 00:43:06.560 having power. And maybe you should be afraid of having power because maybe you'd misuse it. 490 00:43:07.120 --> 00:43:12.560 But if you do want to help the world, then all it's going to do is amplify your ability to do that. 491 00:43:13.200 --> 00:43:16.560 And if you have that mission on your heart or in your mind, 492 00:43:18.160 --> 00:43:24.400 then it's your duty to remove everything else in your fucking way to go get it. The more money you 493 00:43:24.400 --> 00:43:29.280 make other people, the more money you make. And so the amount of money that you will be able to make 494 00:43:29.280 --> 00:43:34.400 in your career comes down to three variables. Number one is the value that you're able to create 495 00:43:34.400 --> 00:43:41.200 in total for all of the people you create it for. Times, your ability to negotiate how much of that 496 00:43:41.200 --> 00:43:48.640 value you're able to get. Times, number three, which is the amount of other people who can also create 497 00:43:48.640 --> 00:43:54.240 that value. And you have to have all three. Because for example, if you develop a skill of sales 498 00:43:54.800 --> 00:44:00.320 and you can create millions of dollars in value for a company and you're really good at negotiating, 499 00:44:00.320 --> 00:44:05.280 then in theory you'd get millions and millions of dollars from that company. But if somebody 500 00:44:05.280 --> 00:44:10.320 else is willing to work for a few hundred thousand dollars a year in order to make that value, 501 00:44:10.320 --> 00:44:16.400 then your position disappears. And so that gives us the blueprint for making money. Is that not only 502 00:44:16.400 --> 00:44:20.880 do you want to be able to create that value, you want to be able to create a value in a way that no 503 00:44:20.880 --> 00:44:27.440 one else can? And the way that you do that is not by, in my opinion, learning some incredibly 504 00:44:27.440 --> 00:44:35.280 secret unique skill. What makes skills unique is the skill set. It's the stack of skills together 505 00:44:35.280 --> 00:44:41.280 that create the uniqueness. If someone else has to try and recreate something I could do, they would 506 00:44:41.280 --> 00:44:48.320 have to have lived my life. And so your life and the time you spend becomes your competitive advantage. 507 00:44:48.320 --> 00:44:53.280 It becomes your asset. It becomes the mode that other people can't chip into. They'd have to go 508 00:44:53.280 --> 00:44:58.560 through being a competitive fitness person and then go through owning lots of gyms and then go 509 00:44:58.560 --> 00:45:02.960 through doing turn rounds across the country and then go through doing a licensing business and 510 00:45:02.960 --> 00:45:07.360 then go through making a supplement business and then go through launching a meal prep business 511 00:45:07.360 --> 00:45:12.560 and then also starting a software company and then going through an exit for both and then 512 00:45:12.560 --> 00:45:16.400 starting a private equity. They'd have to do so much stuff. There are so many skills that are 513 00:45:16.400 --> 00:45:23.520 required. Your time is your weapon if you invest it wisely. And the one thing that I will leave you 514 00:45:23.520 --> 00:45:31.120 with is that money loves speed, wealth loves time, poverty loves in decision.