WEBVTT

1
00:00:00.000 --> 00:00:03.600
This video is for every 17 year old 16 year old 18 year old 19 year old who's

2
00:00:03.600 --> 00:00:06.800
considering going to college or quitting college right now should I spend the

3
00:00:06.800 --> 00:00:11.040
next four years going to college. Hopefully I can equip the parents and the kids

4
00:00:11.040 --> 00:00:15.280
to make call with as little societal pressure as possible. When I lived in Austin my

5
00:00:15.280 --> 00:00:18.720
next door neighbor was 18 years old. He was at this important decision in his

6
00:00:18.720 --> 00:00:21.200
life where he was deciding whether he was going to go to college and I knew his

7
00:00:21.200 --> 00:00:23.920
parents and it's kind of interesting because I sit halfway between his parents

8
00:00:23.920 --> 00:00:28.960
and him so I kind of have both sides. He decided to enroll at Pepperdine. After a

9
00:00:28.960 --> 00:00:32.720
semester he didn't really like it and I think a lot of it was because it was

10
00:00:32.720 --> 00:00:36.160
just kind of expected that he'd go to college there. I had developed a rapport

11
00:00:36.160 --> 00:00:39.520
with him and you know he used to work out with me at my home gym after school

12
00:00:39.520 --> 00:00:42.640
and whatnot and so I was like hey man let's go for a walk and I think we walked

13
00:00:42.640 --> 00:00:45.760
for about an hour and we just walked around the neighborhood and I'm pretty

14
00:00:45.760 --> 00:00:51.680
sure that that conversation significantly shifted the trajectory of his life.

15
00:00:53.680 --> 00:00:57.040
There we go all right the reason most people to go to college is because that is

16
00:00:57.040 --> 00:00:59.920
what's expected they don't think about the decision they just do it because it

17
00:00:59.920 --> 00:01:02.960
feels like the next natural path it's the same thing for having kids and getting married

18
00:01:02.960 --> 00:01:06.560
and buying a house but let's not get into that. He went from going to Pepperdine to dropping out

19
00:01:06.560 --> 00:01:10.320
his friends his family his friends parents started looking at him different he was like the

20
00:01:10.320 --> 00:01:15.200
trouble child he was like the I don't know about him two years later he now has $250,000

21
00:01:15.200 --> 00:01:20.000
saved up as a 20 year old makes $200,000 year right now as a sales guy what I

22
00:01:20.000 --> 00:01:26.000
want to do is break down the split in the road of two different lives that he could have lived

23
00:01:26.000 --> 00:01:30.320
or that you could live or that somebody that you know who's facing the decision could go through

24
00:01:30.320 --> 00:01:32.880
and I'll tell you how the conversation I had with him went.

25
00:01:32.880 --> 00:01:37.360
Sup man so I said listen you're at a crossroads right now we have crossroads every day in our lives

26
00:01:37.360 --> 00:01:40.560
I was like but some crossroads are bigger than others and when you're trying to make a decision

27
00:01:40.560 --> 00:01:45.200
you have to think how reversible is this decision and how much long-term impact is death if I'm

28
00:01:45.200 --> 00:01:48.960
choosing between Chinese and Mexican for lunch it's a split in the road and it's really not

29
00:01:48.960 --> 00:01:53.200
going to affect much from me down the road choosing to go and commit four years of my life between

30
00:01:53.200 --> 00:01:58.640
50 and $200,000 of money and the lost income that I would have made during that period of time

31
00:01:58.640 --> 00:02:03.120
those are very big irreversible decisions and they need to be treated with the same amount of

32
00:02:03.120 --> 00:02:06.400
respect and a lot of people don't because they make that decision because their parents are

33
00:02:06.400 --> 00:02:10.240
selling them too which seems like the overused one but realistically because they don't want to be

34
00:02:10.240 --> 00:02:14.720
the kid who did it wrong who didn't do what they were supposed to do and didn't do the next

35
00:02:14.720 --> 00:02:18.000
natural step that's a terrible reason to go to college I would like you to approach it with a

36
00:02:18.000 --> 00:02:21.600
decision-making firm that makes sense so it starts with and this is me telling him this I was like

37
00:02:21.600 --> 00:02:25.360
what problem are you solving it's like well I want to make you so the question is four years from

38
00:02:25.360 --> 00:02:28.560
now if you have a degree and you lost the money and you lost the earning potential you had during

39
00:02:28.560 --> 00:02:33.840
those four years is that you more able to generate income than an alternative you because what we have

40
00:02:33.840 --> 00:02:38.560
to analyze is not the cost of college but the opportunity cost of going to college the opportunity

41
00:02:38.560 --> 00:02:43.440
cost is the loss of potential gain from other alternatives when one alternative is chosen so when

42
00:02:43.440 --> 00:02:47.920
we choose to go to college there's an opportunity cost that exists and it is the single greatest cost

43
00:02:47.920 --> 00:02:52.640
that people do not take into consideration it's the cost of not doing of what you could have done

44
00:02:52.640 --> 00:02:55.840
in the meantime one is it's gonna cost you money because you actually got to spend money to do it

45
00:02:55.840 --> 00:02:59.760
the second way to cost you money is that you're not gonna earn what you probably could earn full time

46
00:02:59.760 --> 00:03:03.920
working if that's what you wanted to do you got two sides there if you spent four years versus starting

47
00:03:03.920 --> 00:03:07.280
a business and then four years later the opportunity cost is the business you could have started and

48
00:03:07.280 --> 00:03:11.600
what you would have four years later so I'm walking with him and this is like a one hour really in depth

49
00:03:11.600 --> 00:03:15.040
like this is probably deeper than he and I have been because I'm still this neighbor from across the

50
00:03:15.040 --> 00:03:18.160
street that like makes money on the internet right but his parents like trusted me enough to be like

51
00:03:18.160 --> 00:03:21.520
you know I know that you have a lot of influence over our son and like we just want you to know that

52
00:03:21.520 --> 00:03:26.800
like we know you do and so like please be careful and I was like I'm aware he's in good hands

53
00:03:26.800 --> 00:03:30.560
don't be afraid for what I'm gonna tell your son I said listen to it if you want to make money

54
00:03:30.560 --> 00:03:36.160
then you need income generating skills do you think your philosophy degree your sociology degree

55
00:03:36.160 --> 00:03:40.080
your psychology degree your economics degree even which is still a little more useful is gonna

56
00:03:40.080 --> 00:03:44.880
give you actual skills to make money it was like I don't know and so I'm here to tell you

57
00:03:44.880 --> 00:03:49.200
what actually makes money there's this lie that has been sold that you need to learn

58
00:03:49.200 --> 00:03:54.960
general education I can tell you ancient Chinese literature has never impacted my ability to make

59
00:03:54.960 --> 00:04:00.320
money or Aztec culture don't know anything about it but it's classes and they somehow fool

60
00:04:00.320 --> 00:04:04.240
kids into thinking that if they take this class they're now somehow gonna be more equipped to add

61
00:04:04.240 --> 00:04:09.280
out of the marketplace if Alex were redoing the education system the majors would be in accordance

62
00:04:09.280 --> 00:04:14.000
to the departments of a business you'd have marketing and it would have the actual waste to market

63
00:04:14.000 --> 00:04:17.120
which is creating the materials of marketing and how to distribute it you'd have sales how to get

64
00:04:17.120 --> 00:04:21.200
strangers to give you money delivery portion which would be either physical products delivery or

65
00:04:21.200 --> 00:04:25.360
services delivery which would be customer experience customer success or it'd be technical

66
00:04:25.360 --> 00:04:29.440
electrician plumber lawn mower whatever it is so then you have the actual technical component of

67
00:04:29.440 --> 00:04:33.760
the services delivered and then you have the supporting services which are like finance, HR,

68
00:04:33.760 --> 00:04:36.480
legal those would be the things that people should major in because those are the things that

69
00:04:36.480 --> 00:04:40.240
you're gonna get hired to do Google stopped requiring college degree big tech corporations

70
00:04:40.240 --> 00:04:43.680
have stopped it because they realized it too that it's not value additive if I'm a doctor or

71
00:04:43.680 --> 00:04:48.640
a lawyer you need a degree sure but for the 99% of people who don't fall in the six fucking careers

72
00:04:48.640 --> 00:04:52.640
that you have to have one people like Alex who went to Vanderbilt I graduated a year early so I

73
00:04:52.640 --> 00:04:56.000
tried to get out as fast as possible could one of the regrets that I have is that I could have

74
00:04:56.000 --> 00:05:00.240
started sooner and the reason why I didn't drop out of college is because I was too too

75
00:05:00.240 --> 00:05:04.960
shit scared to disappoint my father if you're gonna do it eventually it might as well do it now

76
00:05:04.960 --> 00:05:08.720
when I see the guys who were starting at 18 I'm like man I wish I'd started then rather than 23

77
00:05:08.720 --> 00:05:12.800
I would have five more years zooming back out I'm walking in the street we're talking together and

78
00:05:12.800 --> 00:05:17.120
I told him this line I said the world doesn't need another three-one business degree from pepper dine

79
00:05:17.120 --> 00:05:21.840
another B student who graduates because he didn't really give a shit right he would just do good

80
00:05:21.840 --> 00:05:25.280
enough that he would get through and this is what he brought up he's like well what about like the

81
00:05:25.280 --> 00:05:29.680
social experience of college I was like so do you think that if you don't go to college you're not

82
00:05:29.680 --> 00:05:35.040
gonna be able to party with people who are your age I was like real talk and he was like well like

83
00:05:35.040 --> 00:05:39.840
kind of if the problem to be solved is to socialize you there are way more efficient ways to

84
00:05:39.840 --> 00:05:44.160
socialize you than spending two hundred thousand dollars in not making income you can work all day

85
00:05:44.160 --> 00:05:48.960
and then make my objective for this period of time to have fun then fucking work all day and

86
00:05:48.960 --> 00:05:53.920
then literally go out every single night and you'll end up debt-free with savings and have a hell

87
00:05:53.920 --> 00:05:57.760
of a crazy four stories and that's fine if that's what you want to do I was like is that what

88
00:05:57.760 --> 00:06:01.440
you want to do he's like no and I think at some point in the conversation he's like I kind of

89
00:06:01.440 --> 00:06:04.160
want to do what you do but I was like well then you got to learn the skills that I had to start

90
00:06:04.160 --> 00:06:07.840
fucking five years older than you to start learning right and the first thing was you had to learn

91
00:06:07.840 --> 00:06:11.360
how to sell let's just go down that path if you're watching this you're like well I don't like sales

92
00:06:11.360 --> 00:06:14.240
I told you all the other departments that you could focus on feel like you know what I like being

93
00:06:14.240 --> 00:06:18.720
behind a camera then cool what do you think behind a camera means in a business behind a camera means

94
00:06:18.720 --> 00:06:22.720
you're making content you're making commercials pick one that's what video is used for right if you're

95
00:06:22.720 --> 00:06:26.000
like I like writing words what do you think writing words are used for in business they're used

96
00:06:26.000 --> 00:06:30.720
to sell shit or deliver shit that's it or legal to protect people from selling and delivering shit

97
00:06:30.720 --> 00:06:33.760
I like dealing with people it's like well it depends are you a little bit more aggressive you might

98
00:06:33.760 --> 00:06:37.200
like sales if you're a little bit more passive-ish and I'm not saying it's a bad thing you might

99
00:06:37.200 --> 00:06:41.200
like more of like the HR or you might like recruiting you might like selling people rather than

100
00:06:41.200 --> 00:06:45.360
selling products different ways of thinking about and so you can take your skills and then bucket

101
00:06:45.360 --> 00:06:49.120
them into which of these departments make more sense and then that's what I'm going to focus on

102
00:06:49.200 --> 00:06:54.240
zooming back out so I said now we need to look at your three one degree 200,000 dollars of debt

103
00:06:54.240 --> 00:06:59.120
four years later versus four years from now you're gonna have saved money this whole period of time

104
00:06:59.120 --> 00:07:02.400
so he's living with four guys because I was like dude you're living cheap that's how this works

105
00:07:02.400 --> 00:07:07.040
so he saves a lot of money which is why he is 250,000 dollars saved up at 20 that's not from Alex

106
00:07:07.040 --> 00:07:10.240
doing anything like he worked for it he worked for it and he saved every dollar that he made and

107
00:07:10.240 --> 00:07:13.360
what do you think he's gonna be able to do in four years he's gonna be able to start his own thing

108
00:07:13.360 --> 00:07:17.920
with a ton of capital and skills as we're walking through these four years what do we think happens now

109
00:07:17.920 --> 00:07:22.720
he's like I really like sales now he happened to have like sales the blessing that he got was

110
00:07:22.720 --> 00:07:26.720
he had a mentor which obviously was me I could see his personality I was like dude I think you do

111
00:07:26.720 --> 00:07:30.640
well here and he did like you did well but if he was that camera guy and he really liked more of

112
00:07:30.640 --> 00:07:34.560
that stuff or if he was really techy out of being like dude go start coding and so all of like

113
00:07:34.560 --> 00:07:37.600
you have this base skill and it's like where do I want to apply it if you're like I don't know

114
00:07:37.600 --> 00:07:42.160
you're never gonna know because how would you know you know by starting and then you'll gain context

115
00:07:42.160 --> 00:07:45.840
to make the decision later all you know is the experiences you have and so all you have to do is

116
00:07:45.840 --> 00:07:49.280
just always look around every so often be like have I learned everything that I'm going to learn

117
00:07:49.280 --> 00:07:53.040
from this branch and if you've learned everything you're gonna learn then at that point you can make

118
00:07:53.040 --> 00:07:56.320
the pivot right but if you're like dude they're still out for me to learn do I want to learn that

119
00:07:56.320 --> 00:07:59.840
is it the direction I want to keep going I remember when I did my first years of consulting I look

120
00:07:59.840 --> 00:08:03.680
down the road 25 years and I was like I don't want that life this is a hack that I will give you for

121
00:08:03.680 --> 00:08:08.000
very big decisions is that you want to keep thinking on it keep chewing on it keep digesting it

122
00:08:08.000 --> 00:08:12.720
until you can get into a single statement which is for him four years from now given the cost which

123
00:08:12.720 --> 00:08:16.480
of these two paths will give me the most potential for my future and he was like well I think the

124
00:08:16.480 --> 00:08:21.120
other one and I was like then what are you gonna do so he decided to drop out and he ended

125
00:08:21.120 --> 00:08:25.920
going to sales and he was terrified in the beginning he sucked it sales because he had never done it

126
00:08:25.920 --> 00:08:30.240
before of course he would suck and of course you will suck too because you haven't done it but how

127
00:08:30.240 --> 00:08:34.160
do you think you get good you start by sucking and then you suck less that's how it works

128
00:08:34.160 --> 00:08:37.120
till eventually you look back after hundreds and hundreds and thousands of repetitions and you're

129
00:08:37.120 --> 00:08:39.920
like oh I'm actually pretty good at this and it's reasonable that you be good because you've done

130
00:08:39.920 --> 00:08:43.440
it a thousand fucking times he likes sales it's probably going to be the direction that he takes

131
00:08:43.440 --> 00:08:47.520
directionally in his life he's like what do I need to learn now so it's like okay how do you move up

132
00:08:47.520 --> 00:08:50.400
it's like I can start a business I was like yeah I was like what are you gonna what skills

133
00:08:50.400 --> 00:08:52.960
are you gonna need to start a business I gotta know how to market I was like well you already

134
00:08:52.960 --> 00:08:56.320
learned how to cold call like that's your first acquisition channels we got that handle which is

135
00:08:56.320 --> 00:08:59.680
why I put them there it's like okay so I have that so I can get customers all right and I know how to

136
00:08:59.680 --> 00:09:03.200
sell so I got that I was like what are you gonna deliver it's like well I really do like teaching

137
00:09:03.200 --> 00:09:06.560
sales I was like well who the fuck have you taught sales to he's like I guess I happened and I was

138
00:09:06.560 --> 00:09:10.320
like hmm sounds like a skill you need to have he's got to learn the skill of how to transfer a skill

139
00:09:10.320 --> 00:09:13.600
from himself to somebody else one of the other skills he's gonna have to learn he's gonna have to learn

140
00:09:13.600 --> 00:09:17.200
how to do finance and he's gonna have to get contracts that up so you can have services agreements

141
00:09:17.200 --> 00:09:20.640
things like that but again these are all Googleable things that you can do you can figure those things

142
00:09:20.640 --> 00:09:24.000
out you know a couple days it's not a big deal for the parents who are watching the kids who are

143
00:09:24.000 --> 00:09:27.600
watching this at home are trying to make the decision is do you I think that four years from now

144
00:09:27.600 --> 00:09:32.800
with 50 to 200 thousand dollars an absolute cost and probably higher than that an opportunity cost

145
00:09:32.800 --> 00:09:37.280
of the cost of the path not taken which of these two paths will lead me closer to where I want to go

146
00:09:37.280 --> 00:09:41.360
and if the goal is to to make income then you have to look at that two hundred thousand dollars

147
00:09:41.360 --> 00:09:45.760
and all the things you could buy with that two hundred thousand dollars and four years of time

148
00:09:45.760 --> 00:09:49.920
and think is there another way that I could reverse engineer four years to get me to where I want to go

149
00:09:49.920 --> 00:09:53.440
or if you just really like the technical expertise that you have you go super deep on the

150
00:09:53.440 --> 00:09:57.200
technical expertise and then you bolt on one additional skill this is the one skill I will give you

151
00:09:57.200 --> 00:10:00.640
that you need to bolt on to instantly give yourself the lift and whatever career you have you got to

152
00:10:00.640 --> 00:10:04.800
learn how to deal with people go learn how to manage go learn how to lead you're like that sounds

153
00:10:04.800 --> 00:10:08.000
like the soft stuff and it is but it's also how you're going to get promoted it's how you get

154
00:10:08.000 --> 00:10:11.520
respect it's how you gain influence and you also realize that the technical thing that you're really

155
00:10:11.520 --> 00:10:14.320
good at is probably not the thing you're going to be doing in the business you just got to know

156
00:10:14.320 --> 00:10:18.160
well enough to teach it to somebody else his parents came to me after like I talked to him and they're

157
00:10:18.160 --> 00:10:21.840
like Alex can you please just tell me again on why he should be you're like telling him to

158
00:10:21.840 --> 00:10:24.720
to quit college I was like I'm not telling him to quit college I'm telling him to make the best

159
00:10:24.720 --> 00:10:28.560
decision for where he wants to be in four years I'm not telling him not to get educated I'm telling

160
00:10:28.560 --> 00:10:33.120
him to get super educated in the thing that he wants to do the best people in the world at anything

161
00:10:33.120 --> 00:10:36.960
learn for themselves they're a self-taught if you can adopt the mentality then the world is your

162
00:10:36.960 --> 00:10:39.680
oyster because you realize that you can learn whatever you want whatever you want you don't

163
00:10:39.680 --> 00:10:44.320
need a certification or permission to do that which of these paths four years from now giving

164
00:10:44.320 --> 00:10:50.720
the opportunity cost is going to give me furthest towards Michael here we go all right stop man

165
00:10:51.600 --> 00:10:56.480
what's up what's up so I was responding to the comments he had that they didn't think that you were

166
00:10:56.480 --> 00:11:03.040
real so this is this is to my my YouTube audience to know that Jacob is indeed a real person

167
00:11:03.040 --> 00:11:10.560
can you confirm that you lived as my neighbor next to my house and then we did work out every day

168
00:11:10.560 --> 00:11:19.760
after school yep yep and then how long you know still can't drink yet tough life

169
00:11:20.160 --> 00:11:25.040
um so you're in sales now right what are you making right now i'm probably at two 15

170
00:11:25.680 --> 00:11:30.320
at one 13 the first six months of this um already i'm trying to run ahead of that

171
00:11:31.920 --> 00:11:36.800
nice to be king and then how much money have saved up two ten two ten okay so over i

172
00:11:36.800 --> 00:11:40.000
it was i thought there's two thought is two fifty i got the two fifty mixed up so it's two ten

173
00:11:40.000 --> 00:11:46.880
what would you say has been the like the biggest out of metal my shift change etc from our

174
00:11:46.880 --> 00:11:55.840
talks in our chats well you decided not to go to college right is that the walk that did it

175
00:11:59.920 --> 00:12:03.760
i did i did go really aggressive on that walk to be fair so you would now at that point

176
00:12:03.760 --> 00:12:07.760
been in school for a semester what was the reason you decided to to take that jump

177
00:12:09.040 --> 00:12:14.160
i think that the the line that really hit when you said and i'm paraphrasing it

178
00:12:14.800 --> 00:12:18.560
it's totally acceptable to fail it entrepreneurship because you're still in school and you're using it

179
00:12:18.560 --> 00:12:24.480
as a crutch i think that that's what's like that's it so i knew i need to go on

180
00:12:25.280 --> 00:12:29.120
yeah so it's you were because you were dabbling on the side and you weren't succeeding at the

181
00:12:29.120 --> 00:12:34.480
archburth thing which is what you really wanted to do and you were using college as a social safety net

182
00:12:34.480 --> 00:12:39.120
to give yourself an excuse for why you weren't winning exactly and so then you uh decided to go all

183
00:12:39.920 --> 00:12:47.200
then we went all in we did it all right say hi to music you're in the closet say hi to

184
00:12:47.200 --> 00:12:54.480
mosey nation so that is to confirm that Jacob is indeed a real person uh with a real pulse and a real

185
00:12:54.480 --> 00:12:58.960
story and if it worked for him it could work for you thanks but i appreciate you go back to sales

186
00:12:58.960 --> 00:13:06.560
calls Jacob was lucky as hell that he just happened to have been my neighbor um that's right

187
00:13:06.880 --> 00:13:12.000
i could just tell that he was incredibly hungry i knew that he had this really deep desire to prove

188
00:13:12.000 --> 00:13:17.600
himself when i see something like that i'm like cool like and the the way i tested that i was like

189
00:13:17.600 --> 00:13:22.320
shop after school every day will work out and i wanted to see if you would show up and like clockwork

190
00:13:22.320 --> 00:13:27.120
no matter what every day he would text me was like me having a text hammer remind him i knew that he

191
00:13:27.120 --> 00:13:31.120
had that desire and he would take as much as i was willing to give if this video caused you to question

192
00:13:31.120 --> 00:13:35.120
a couple things or maybe even brought up more questions than it did answers because it opened up

193
00:13:35.120 --> 00:13:39.440
your mind to some things what i'd recommend doing is watching this video my video about how to

194
00:13:39.440 --> 00:13:43.360
analyze opportunities and so if you're looking at okay maybe i don't do college but what path do i

195
00:13:43.360 --> 00:13:47.280
go on that will give you the framework to make the decision on how you analyze opportunity in your

196
00:13:47.280 --> 00:13:51.680
life and a business that you might potentially start etc