---
title: 'If You''re 40 And Broke - These 3 Moves Can Still Make You Rich'
source: 'https://youtube.com/watch?v=IuJPHLJLXjQ'
video_id: 'IuJPHLJLXjQ'
date: 2026-07-01
duration_sec: 4419
---

# If You're 40 And Broke - These 3 Moves Can Still Make You Rich

> Source: [If You're 40 And Broke - These 3 Moves Can Still Make You Rich](https://youtube.com/watch?v=IuJPHLJLXjQ)

## Summary

If you're in your 40s and feel behind financially, you can still build significant wealth by focusing on three key factors: dollars invested, return rate, and time. Since time is fixed, the video explains how to increase the other two through aggressive saving, debt elimination, and smart investing. The speaker outlines a seven-step order of operations to accelerate financial freedom.

### Key Points

- **The Three Wealth Factors** [0:00] — Wealth = money invested × return rate × time. Time cannot be changed, but you can compensate by investing more dollars or seeking higher returns.
- **Assess Your Finances** [1:15] — Start by evaluating savings, investments (401k/IRA), debts, income, money tracking, and legal/financial shields (will, trusts, LLCs, insurance).
- **Invest More Dollars** [3:43] — The most effective way to build wealth is to increase how much you invest. This can be done by earning more or cutting expenses.
- **Seven-Step Order of Operations** [5:34] — 1) Build base savings ($2,000 emergency fund), 2) Attack high-interest debts, 3) Build a financial system, 4) Make lifestyle adjustments, 5) Create the right investments, 6) Increase income, 7) Manage other debts.
- **$2,000 Emergency Fund First** [6:00] — Before investing, save $2,000 cash as a emergency buffer to avoid high-interest credit card debt from unexpected expenses.
- **Pay Down High-Interest Debt** [8:10] — Credit card debt (14-25% APR) destroys wealth faster than any investment (7-10% average return). Pay it off before investing.
- **Build a Financial System: 75-15-10 Plan** [10:28] — For every dollar earned: spend max 75 cents, invest at least 15 cents, save at least 10 cents. Automate transfers to separate accounts for spending, savings, and investments.
- **Wealth Comes from Owning Assets, Not High Income** [17:19] — Most Americans are broke because they spend more income on liabilities (cars, houses). Wealthy people buy assets that generate cash flow or appreciate.
- **Lifestyle Adjustment Is Essential** [19:32] — Cut expenses: downsize home, drive a cheaper car, eliminate unused subscriptions, eat out less. This frees up money for investing.
- **Passive vs Active Investing** [24:06] — For most people, passive investing (buying ETFs like VTI) is better. Set up automatic weekly investments regardless of market conditions. Active investing (individual stocks) requires significant research and skill.
- **Four Accelerators of Wealth Velocity** [47:39] — Mindset (stop hating rich people, see money as a tool), Commitment (overachieve at work to earn more), Discipline (stick to the system during market downturns), Risk tolerance (accept that losses are part of the game).
- **JP Morgan Predicts Recession May Be Necessary** [67:41] — JP Morgan Chase notes that the full effects of 2022 interest rate hikes haven't been felt yet, and a recession may be needed to bring inflation down. This could create buying opportunities for prepared investors.

### Conclusion

Starting in your 40s doesn't doom your financial future – you can still build wealth by investing more dollars and seeking higher returns. The key is immediate action: save a $2,000 emergency fund, eliminate high-interest debt, and systematically invest the rest.

## Transcript

I recently put out a video about what
you can do in your 30s if you don't have
any investments to get started to become
wealthy. And the number one type of
comment that I got in that video is,
"What do I do if I'm in my 40s?" Because
guess what? If you're in your 40s, you
don't have as much time as somebody in
their 20s. Well, the good thing is there
are three things that will determine how
wealthy you'll become. Number one is the
dollars. How much money do you invest?
Number two is a return. How fast can you
grow your money? And number three is
time. How long do you have for your
money to grow and compound? Well, the
one thing, the one factor that you
cannot change is time. None of us can go
back in time and start investing when
we're 19 or 20 or 25 years old, but we
can get started today. The thing that
you have to remember is that you can
make up for an imbalance in one of these
three factors by putting more weight on
one of the others. So, if you have less
time, you can increase how many dollars
you're investing or you can increase the
return that you're getting. If you don't
have enough dollars to invest, you can
increase the type of return that you're
getting. And that's what I'm going to be
going over in this video. Because if
you're in your 40s, your time isn't as
much as somebody who's 25. But that does
not mean that there's no opportunity for
you to become wealthy. But it does mean
you're going to have to get laser
focused and extremely focused on
becoming wealthy. And that requires some
sacrifices, some hard work, and putting
your money in the right places. And the
first thing you want to do is you have
to start by assessing your finances
where they are right now. Number one, do
you have any savings? Number two, do you
have any investments, including a 401k
or an IRA? Number three, do you have any
debts, and what kind of debts are they?
Number four, what is your income
combined? Number five, are you tracking
your money? Number six, what legal or
financial shields do you have? These
legal or financial shields could be
things like a will, an estate, a trust.
These could be things like LLC's and
different insuranceances to protect you
in case you get sued, to protect you in
case something bad happens. Now, this is
where the first thing that you have to
do in order to start improving your
finances is you got to get a picture of
where you are right now because
everybody's going to be in a different
boat. Somebody's going to have $3,000
worth of debt, no savings, no
investments. Somebody else is going to
have $40,000 worth of debt with $100,000
worth of assets. And somebody else might
have no debt and half a million dollars
worth of investments put aside. And this
is where you got to create that picture
of where you are today and where you
want to go. And the way you want to
start this is you take a piece of paper,
take a Google sheet, does not matter.
And you want to write down these
numbers, right? Number one on the top,
what is your income? How much money are
you making? And what are the sources of
this income? This could be a job. This
could be a business. This could be your
investments. What is the income that
you're making? Then below that, you want
to write down your expenses. Now, this
is going to be a detailed list of your
expenses. You want to take a look at
your credit card statements, your debit
statements, and your bank statements to
see where is your money going. Is it
going to restaurants? Is it going to
groceries? Is it going to gas? Is it
going to your car payments? Is it going
to your mortgage? Is it going Write down
all the different places where your
money is going? Categorize it. That way
now you can see your income. Then you
see your expenses. Then after the
expenses line items, that's where you
want to write where else your money is
going. How much money are you putting
towards your investments? How much money
are you putting towards charity? How
much money did you put towards your
savings? How much money did you put
towards anywhere else that's not listed
above? Maybe you're saving money for a
down payment on a home. Maybe you're
saving money to buy a car. Maybe you're
saving money to buy a watch. Write that
there as well. That way you know exactly
where your money is going. Now you have
a picture of where your money is going.
And then you should also be writing down
all of your debts and all of your other
assets here as well. This is going to
give you a starting point because now
you can take a look at this and say how
far are you from being able to become
wealthy? Because remember three factors
time, dollars, and return. We can't
change the time, but we can influence
the dollars and the return that you get
on your money. And this is where now the
most successful place to start is by
being able to invest more dollars. The
more dollars you invest, the wealthier
you will be able to become. Period.
Because well, if someone's investing
$1,000 and somebody else is investing
$5,000, you have the ability to see more
return on your money if you can invest
more money, assuming you invest your
money into a good investment. So now,
how could you invest more dollars?
you're going to have to figure out
either a how can you earn more money so
you have more money to invest or b how
can you cut back on your expenses? And
this can be very difficult especially in
if you're in your 40s because now you
feel like you're established in your
career and you don't want to be cutting
back now to start putting money aside
towards your investments. But you're
going to have to get real with yourself
and we're going to go over some numbers
where you're going to have to put in the
sacrifice right now. do whatever it
takes because if [snorts] you do not
have a solid plan towards building
wealth or retirement now, you are going
to have to get extremely committed
because you don't have the same time as
somebody who's 21 or 25. And so you have
to get extremely committed and make
double the sacrifice because if you want
to be able to live wealthy, live
financially free, and not have to worry
about money anymore, you're going to
have to put in that sacrifice now. And
yeah, it's not as fun to do that when
you're in your 40s as compared to when
you're in your 20s. But either you're
going to look back when you're in your
50s and 60s and say, "Thank God I made
the sacrifice when I did." Or you're
going to look back and say, "Man, I wish
I did." And that's going to be the
decision for you to make. So you got to
start by assessing the situation that
you're in right now. And then the second
thing that you have to do is you're
going to have to build the order of
operations now of how you are going to
get the wealth and the financial freedom
that you want. We're going to build out
these order of operations. And then
number three is you're going to have to
attack this order of operations. So
you're going to assess, build the right
order of operations, and then attack
this order of operations. And now when
you're talking about this order of
operations, there are seven things that
you need to work on. The first thing
that you need to do is you have to make
sure you have your base foundation
built, your base savings. Number two is
you have to attack the highinterest
debts. Number three is you have to build
a financial system. Number four is you
have to make your lifestyle adjustments.
Number five is you have to manage and
create the right investments that give
you the best rate of return possible.
Number six is you have to look at your
income. And the number seventh is when
you're going to look at your other
debts. So, let me start by building that
financial base. Starting with building
that base savings. If now you don't have
any savings, and by savings, I mean an
emergency savings cushion that's there
not to make you rich, that's there not
to help you buy investments, that's
there not to help you buy a car, that's
there just to protect you against an
emergency. Your emergency fund, as some
people like to call it. If you don't
have any savings, the first thing you
got to do is save $2,000 ASAP. Because
if you don't have $2,000 saved up, you
are in a financial danger zone. Because
what happens to so many people now in
this instance is when you have no
savings put aside, guess what? Life
happens. And by life, I don't just mean
someone's having a baby and they got to
go pay for a baby shower gift. I mean,
your car breaks down, your AC breaks,
your window breaks, your kid breaks
their arm. Something happens. And that
something is expensive. And when you
don't have savings to cover that
expense, well, what do you do? You put
it on your credit card. Now, not only do
you have to pay that expense back, but
then you got to pay it back plus 19%
interest. Which means instead of paying
that $1,500 to fix the problem, you now
have to pay $2,200 because you had to
pay the $1,500 from your credit card and
then another $700 in interest because it
took you so long to pay it back in the
first place. So, the first thing you
need to do right now is get extremely
aggressive to put at least $2,000 aside
before you do anything else. Before you
worry about putting money in the stock
market, before you worry about putting
money anywhere else, you got to save
this $2,000 ASAP. And the way that you
do that is you got to get very
aggressive now on not spending money on
anything. If you do not have $2,000 put
aside to protect you against an
emergency, you should not be spending
money. You should not be going to
restaurants. You should not be having a
Netflix subscription. You should not be
having any music subscriptions. You
should not be having a massage
membership. You should not have any of
these payments because this is a
financial danger zone. And trust me, I
know this one's not fun to do, but
without this, you're never going to be
able to achieve any real wealth. So,
until you have the $2,000 saved up, no
spending money on anything unless you
need it, absolutely need it to survive.
You need a pair of shoes, you don't need
the new Jordans. You need a place to
live, you don't need that nice home. You
need a car to get to and from work, but
you do not need that Beamer. put aside
the $2,000 and then the next thing that
you got to do is you have to then pay
down the highinterest debts and attack
that. And the reason why now we're
talking about paying down these
highinterest debts before we talk about
going out and investing your money in
the stock market or trying to go and buy
rental properties and create cash flow
and build that wealth is because your
credit card debt is costing you a lot of
money. Credit card debt is 14 to 25%
interest rate, sometimes more, but in
that range, your investments are paying
you 7 to 10% historically on average.
Which means if you go out and you put
your money into the stock market or into
the real estate market and you get an
average return of let's just say 10%,
which is pretty good. If somebody got
10% a year on their stock market
portfolio, that would be considered a
great return. But then if you have to go
and turn around and pay 15, 20, 25% on
your credit card debt, you are losing
money. You are losing wealth because now
you're getting 10% and you're paying 20.
So this is where right now before you go
out and worry about investing your money
to grow your wealth, you got to stop the
financial bleeding, which means you got
to pay down your credit card debt.
Because the funny thing when it comes to
the topic of investing, everybody talks
about how can I get better returns? How
can I increase the velocity of my money?
How can I make my money faster? How can
I double my money quicker? Well, do you
want to know who's doing that very
quickly at your expense? Your credit
card company. Because guess what? Your
credit card debt is a liability for you.
It's an expense for you. But it's an
asset for your bank. It's an asset for
your credit card company because now
your credit card company is getting that
20% return every time you spend a penny
on your credit card. Now look, I love
credit cards. I use a credit card for
everything because I get cash back. I
get perks. I get spending and fraud
protection, but I also never pay a penny
in interest. If you are paying interest
on your credit card, you are using it
the wrong way and you should not be
using a credit card. Maybe at some point
in the future you can consider using a
credit card, but right now if you have
credit card debt, you should not be
using a credit card. And you got to pay
down this credit card debt ASAP. There
are no exceptions here. You have to pay
down this credit card debt because it is
skinning you alive. The third thing that
you have to attack once you pay down
this high interest debt is you have to
build now a financial system that's
going to make you wealthy before it
makes everybody else around you rich.
Here's the reality of how our economic
system works. The more money you spend,
the richer somebody else makes. When you
go to Chipotle and you spend money,
Chipotle gets richer. When you go to
Lululemon and you buy some new leggings,
they get richer. When you keep that
money in your pocket or when you invest
that money now, Chipotle and Lululemon
are not getting richer, but you're
making yourself richer. Our entire
economic system is designed to get you
to spend your money. And not just that,
it's designed to get you to spend money
you don't have. Because now, when you go
into Lululemon and you don't have the
money to buy those leggings, the$100 or
$200 leggings, well, what do you do?
Well, you could walk out, which is not
good for Lululemon, but you could buy it
with 0% APR, or you can put it on your
credit card, or I'm sure they probably
have their own credit card. I don't know
if they do or they don't, but now you
just bought something with the help of
debt. Now, it's a double whammy for you,
but it's making somebody else rich
because now when you buy this on your
credit card, not only are you making the
banker richer, but now you're buying
something that you wouldn't have bought
in the first place, which is great for
the economy, it's great for Lululemon,
is great for the corporation, and it's
great for the investors, but it's at
your expense. And this is where right
now, your job is to make yourself rich
before you make everybody else rich. And
the way that wealthy people do this is
[snorts] they always, 100% of the time,
is they pay themselves. They work to
make themselves rich before making
everybody else rich. And the way you do
that is by investing your money before
you spend your money. You invest and
save first and then you spend whatever
is left. The majority of America, and
this is why the majority of America is
broke, the majority of America spends
their money first and then they'll save
or invest whatever's left. And when you
do that, guess what? Most of the time
there's never any money left over
because it's very easy to spend money
but it's not as easy to invest or find
that money to invest. And so this is
where you need to build a financial
system. It can be very simple that will
allow you now to always have money to
invest. And that means you can build
something like a 751510 plan. This is a
very easy way to start which says that
from now on [snorts] for every dollar
that you earn, 75 cents is the maximum
that you can spend. 15 is the minimum
that you're investing. We'll talk about
where to invest in just a bit. And 10
cents is the minimum that you're saving.
Now, whether you're earning $20,000 a
year, $200,000 a year, or $2 million a
year, it does not matter. This system is
going to scale with your income. And the
first response that everybody has to
this is just I'm barely getting by as it
is. How do you expect me now to live off
of only 75% of my income? Well, the
response that I always have, you
probably heard me say this, is if the
government was to impose a brand new 25%
tax on you tomorrow, what are you going
to do? Complain, cry, letter to your
senator, but then you're going to find a
way to pay it because if you don't,
you're going to end up in jail. And so
now you are taxing yourself not to make
the IRS richer, but to make yourself
richer. So you have to build some sort
of system that is going to now make sure
you pay yourself first. And by pay
yourself first, I mean making yourself
wealthier before you make everybody else
wealthier. Then once you create this
type of system, I want you to create
three different bank accounts and go to
your bank. You can create these three
different bank accounts. And the reason
why is because you want to separate your
money. You want to have a separate
checking account for your spending
money. You then you need to have a
separate savings account for your
savings money. And then you need to have
a separate third account. This could be
a checkings or a savings. It does not
matter. It just depends on what you want
to do with it. For your investment
money, don't tell the bank this is an
investment account because they're going
to think of it as something completely
different. To the banks, an investment
account is something different. They
have their own definition of an
investment account. You just need a
separate account, whether it's checkings
or savings. That way, you can store the
money that you want to invest. Then
there are many banks that will do this
completely free that will allow you to
build automated systems that will
automatically pull money out of one
checking account and move it into the
second and third account. That way now
every time you get paid you have this
direct deposit that now is going to pull
money out of your checkings account from
your paycheck. Put some of this money
into your investment cash account and
put some of this money into your savings
account. That way now you don't
accidentally spend your savings money
and you don't accidentally use your
investment money to finance a brand new
pair of leggings from Lululemon. And
this is where right now you have to
build this. And you might think, but why
do I need to go out and create these
three different bank accounts? Isn't
that overkill? Well, it's much easier to
spend less money when you don't see that
money. When you see that cash in your
bank account, we as humans, especially
as humans in America, because we live in
a consumerism society where we are bred
to spend money. We are bred to have what
I call net zero thinking, which is if I
have $1,000, I need to spend $1,000.
This is our society here in America. It
just is what it is. So now, how do you
beat that? Well, you should start
changing where the money is because now
when you look at the money you can spend
and you don't see anything in there, you
can't go out and spend more money. So
now you have your separate savings
account, you have your separate
investments account, and now you have
your separate savings account. The thing
that I want to mention about your
savings account is you don't need to
save your money forever because your
savings are not there to make you
wealthy. Your savings are just there to
protect you against an emergency. Now,
there are savings accounts finally
online that will pay you some interest.
Like as of the time of recording this
video, there are online savings accounts
that are real banks that are FDIC
insured that are paying three, four,
even close to 5% in interest a year on
your savings. It's not a CD, so your
money is not tied up. You can pull your
money out whenever you want. And these
are FDICins insured banks. So if you
want to earn some interest on your
savings, consider moving some of your
money to one of these highinterest
savings accounts. But you need to set a
savings goal for yourself. In the
beginning, it was just that $2,000. Now,
as you're working to build this real
savings, you want to have somewhere
between 3 months and 12 months worth of
expenses. And I know this is a big
range. And the reason why is because
everybody's different. Some of you are
going to be big risktakers. You don't
need the savings. Maybe you don't have a
whole bunch of financial
responsibilities. So, you don't need as
much of a savings account. Others of you
are going to be much lower on that risk
tolerance. You feel like you have a lot
of liabilities. You want to have as much
cushion as possible that we never have
to worry about money and stress about
money. In that case, you want to have a
bigger savings account. So, you figure
out how much savings that you need. And
then you're going to keep saving your
money until you hit that savings goal.
Once you hit that savings goal, you're
going to reallocate the 10% that was
going towards your savings now towards
your investments because your
investments are what is going to make
you wealthy. Your investments are what's
going to be working to increase how much
income you get. They're going to be
working to produce you cash flow.
They're going to be working to
appreciate in value. That way, you can
become rich. That way, you never have to
worry about money again. Wealth is built
through owning assets. It's not built
through having a big income. This is a
big misconception here in America
because most people in America are
working for a bigger income and then
they use that bigger income to drive a
nicer car and live in a bigger home. And
that's why most of America is broke
because well that car and home isn't
putting any money in your pocket. But
the few percent of people that are
wildly successful, it's not that they're
rocket scientists, although some of them
might be rocket scientists, but a lot of
rocket scientists are broke too. And the
reason why is because well what wealthy
people do these are financially [snorts]
educated people is when they make their
money they want to buy assets first.
They want to own the investments because
these investments will continue to pay
you even when you're not working.
There's a limit to how much you can earn
from your job. But there's no limit to
how much you can earn from what you own.
And this is why the wealthiest people in
the world are focused on owning more
assets. See, we in this consumerism
society are obsessed with spending. And
look, there's nothing wrong with having
nice things. I want you to have the
luxury things. I want you to have the
nice things. I want you to have the nice
car. I want you to have the big home. I
want you to go on the nice vacations. I
want all those things for you. That's
why we're working hard. That way you can
have the nice things that money can buy.
It's no fun to just have a big bank
account and never be able to actually
enjoy that money. But in order for you
to actually be able to enjoy that, I
want you to be rich first. I want you to
be wealthy first. And in order for you
to be wealthy first, that means you got
to own the assets first. Because when
you own the assets, if you have
investments that are paying for all of
your expenses, well, yeah, who cares? Go
on and buy that expensive car. Go and
buy that expensive vacation. Go and buy
that stupid watch. It does not matter
because you can afford it. At that
point, it doesn't matter what the price
is. You have investments, your assets
that are paying for you to do that. But
in order for you to get these
investments, you don't have to be born a
multi-millionaire. You don't have to be
born to rich parents, but you have to
make that financial sacrifice to have
more money to invest. You can spend less
and you can work to earn more. Now, we
talked about different ways that you can
spend less, right? You got to make the
sacrifices.
But this is where right now you got to
figure out how [sighs] can you have more
money to invest? And then the next
natural question is, well, where do I
invest my money? Which brings me to
point number four, which is the
lifestyle adjustment. Now, we already
kind of covered this, but the reality is
most Americans are broke not because of
their incomes, not because of their
boss, not because of the government, not
because of banks, but because of the
lifestyles that we have and because of
the decisions that we make. Now, I know
that's hard for a lot of us to hear
because we never want to blame
ourselves. It's much easier to blame
everybody else. But when you're pointing
your fingers and blaming everybody else,
there's three fingers pointing right
back at you. Now, we covered this story
in market briefs recently, but the vast
majority of Americans are living
paycheck to paycheck, as in more than
50% of Americans are living paycheck to
paycheck. And this is where most people
say, "Well, if I earn more money, then
I'd be able to solve my financial
problems." But that's not the case.
Because what we've also seen is that the
majority of Americans, more than 50% of
Americans earning over six figures a
year, more than $100,000 a year, are
also living paycheck to paycheck. It's
not how much money you make, it's what
we do with the money you make. And what
we've seen statistically is with when
the majority of Americans get a bigger
raise, they get a bigger salary, they
dig themselves into a deeper financial
hole because now you have more access to
spend. and banks look at you and say,
"Oh, you're making more money. How about
a bigger line of credit on your credit
card? How about a bigger home equity
line of credit from your home? How about
a bigger cash up refinance? How about
more debt that we can go out and spend?"
Now, what the majority of Americans do
with that is they go out and they buy
more liabilities, things that lose that
money, things that make them look rich,
right? You have all the fancy brand name
stuff, you got the nice car, you got the
big home, you got the nice vacations.
And when you finance all these things,
not only do you have to pay this money
back, but then you got to pay interest,
which means now your future income is
being used to pay for yesterday's
spending. And now you're living this rat
race. You're working to spend. You're
working to pay back the bills, and
you're working to pay off the interest.
And when you live in that cycle, you are
never going to have the ability to get
ahead. And this is where right now the
most accessible thing that you can do,
not the easiest, not the funnest, not
the nicest thing to do, but the most
accessible thing that you can do is give
yourself a lifestyle adjustment. Which
means now you got to cut back on some of
the crap. Now, this is not fun, right?
When you go from ordering the double
guac at Chipotle and then you stop
ordering extra guac, that's not fun.
It's not as tasty of a bowl. But you got
to find the ways now to cut back on your
expenses. That might mean that you can
cut back on your home. Maybe you live in
a smaller apartment for a little while,
for a couple years. Not fun, but you can
save a lot of money doing that. If you
get rid of the BMW that you financed and
now you go to drive a Toyota Corolla
with cash, you're going to save a lot of
money every single month. Not just on
the premium gas, not just on the
insurance, not just on the maintenance,
but also the monthly payments that you
don't have to make anymore. And that's
money that you can put directly towards
your investments. When you get rid of
some of the monthly subscriptions that
you're not using, that are not adding
any real value to your life, that's
going to put some more money in your
pocket. When you stop going out to eat
so much, that's going to put some more
money in your pocket. When you sacrifice
a couple vacations, that's going to put
thousands of dollars back into your
pocket. Because right now, you got to
get focused, right? We know the three
things that are going to determine how
wealthy you're going to become. We can't
change the time, but you can change the
dollars and the return. I haven't talked
about the return yet, but right now,
we're trying to get more dollars into
your investment portfolio because that's
going to make you wealthier. How do you
get more dollars in there? Well, you can
spend less or you can earn more. And the
most accessible thing that you can do is
make the lifestyle adjustment. That way
you can spend less. Yeah. Erk to earn
more too. That way you have more money
going into your investments. But the
most accessible thing that you can do is
you got to learn how to spend less
money. That way you have more money just
throwing into your investments cuz
that's what's going to make you wealthy.
And again, this is not fun. Your friends
are going to look at you like you lost
your mind when you pull up in the Toyota
Corolla after you were driving that BMW
4 series. But this is your time to
shine. And then a few years later, once
you were to build that wealth, now you
can go out and buy the BMW 6 series and
maybe you can buy it with cash. That way
you don't even have to worry about the
price. And now you don't got to worry
about the payments. And then when you go
to pump gas, you're not going to be
stressing about gas prices, which is
probably one of the most ironic things
in the world. You see people go into
huge debt to buy these fancy premium gas
cars and then you start complaining
about the price of gas. If you're
complaining about the price of gas, the
problem isn't the price of gas. The
problem is the car that you're driving.
And so, right now, you got to figure out
how you can adjust that lifestyle that
we have less money going out. The fifth
step that you have to then work on is
where do you actually invest your money?
How do you invest your money? And
there's a couple different categories of
things that you want to pay attention
to. Number one is are you going to be
investing your money into cash flow
producing assets? Number two, are you
investing your money passively or
actively? If you're an investor or want
to be an investor and you want to see my
investing strategy, I'll put together a
brand new and free investing master
class where I walk you through how you
can start investing and find hidden
investment opportunities before they hit
the headlines. I'll even show you the
exact framework that my firm and I use
to research investment opportunities and
find investment opportunities. It's a
completely free master class. And when
you sign up for the master class as a
bonus, you're also going to get access
to market briefs, which is my newsletter
for investors. It's read by hundreds of
thousands of investors every single
morning to keep you up to date with
what's happening in the economy. So, if
you want to get the investing master
class and market briefs all for free,
all you have to do is sign up and I have
that link for you down in the
description. Some investments, like your
rental properties, like stocks [snorts]
that pay out dividends, pay out cash
flow. Other investments don't. Like you
can go out and invest in real estate and
hope to flip it in six months to three
years or five years or whatever and make
a huge profit. Same in the stock market.
You can go out and buy stocks with the
goal of trying to sell the stock for a
huge profit in the future. Or you can
buy stocks that are going to pay you for
doing nothing except owning the stock.
This is called a dividend. A dividend is
when a company is going to pay you every
three months, generally every quarter,
and they're going to give you a check or
deposit this money directly into your
stock brokerage account for doing
nothing except owning the stock. Now,
what you have to understand about cash
flow investing is you're not going to
get rich by investing your money into
cash flow, especially in the short term.
Cash flow investing is a long-term game
where you're going to have to constantly
keep buying more of these cash flow
producing assets and do this for a long
enough period of time. That way now you
can build a significant stream of cash
flow. But it's not going to happen
today. It's not going to happen next
year. It's not going to happen the year
after that. But you're going to have to
stay consistent if that's what you want.
Cash flow investing to build real wealth
takes time and it takes commitment and
it takes you consistently putting more
dollars into it. A lot of people think
that, oh, if I buy some cash flow, I'm
going to be rich. You don't get rich by
buying cash flow. You have to make the
money first and then you use this money
to generate cash flow. You got to get
rich and then use this money to buy the
cash flow. When you put enough riches
into these cash producing assets, you're
going to [snorts] get more cash flow
back. The general rule of thumb, what
you're going to see from real estate to
stocks is somewhere between two to 7%
cash flow. That is kind of your your
general range. Sometimes a little bit
less, potentially, sometimes more, but
generally $2 to $7 worth of cash flow,
which means for every $100 you invest,
you're going to get $2 to $7 a year in
cash flow. Again, it's not going to seem
like a lot of money, but now when you
change that up to investing $100 a week,
every week over 10 years, now you can
start to see where the cash flow starts
to grow because then when you get that
cash flow, you can also reinvest that
cash flow to earn more cash flow. So now
you're slapping $100 every week to buy
more cash flow. And then when you get
that cash flow check, instead of taking
that and using it to go out and buy
something nice, you take that money and
you use it to buy more cash flow. That
way every three months you're buying
more cash flow because you're just
throwing more money into this machine
that's printing you cash. That is how
you build wealth by investing for cash
flow. The alternative is well now you're
not investing for cash flow. You are
buying something for say $100 and you
want this to go up to $200. Again,
that's okay. It's just an alternative
way to get paid. And this is where now
you have to be able to analyze your
investments. You have to know how to
invest your money. And you have to know
the different places where you can
invest. Again, the two most well-known
places where you can invest is in the
stock market and into real estate. Now,
if you want to get started in real
estate by owning physical properties,
it's going to take more money. It's
going to take more time. It's going to
take more resources. It's going to take
more risk. There are alternative ways
for you to invest in real estate by
investing in funds online. I have some
of these resources in the description if
you want to see some of the companies
that I work with. They are affiliate
companies of mine. But it is a way for
you to get exposure to real estate. Real
estate generally is going to take more
work, more time, more risk, and more
money. With the stock market, you don't
need as much time, risk, or money
because you can just throw your money
into the market. And this is where you
have to decide now if you want to be an
active investor versus a passive
investor or a hybrid of both. And
if you ask me, the vast majority of
America, 90 to 95%, maybe even 98% of
Americans should be passive investors.
But everybody gets attracted to the idea
of being an active investor. And what
that means is when you try to put your
money in the stock market, most people
think you have to find the next Amazon
or the next Google or maybe the next
Apple if you want to get rich. But
that's not how the vast majority of
people will get rich because when you
play that game of trying to find the
next hot stock, most of the time, the
vast majority of the time, you're going
to lose. And most people don't have the
psychology to know how to manage their
investments, when to buy, when to sell,
and when to hold. And most people don't
know how to analyze their investments.
Maybe you find some cool companies that
you want to invest in, but how do you
analyze the financials? How do you know
if the cash flow is growing? How do you
know if the profits are growing? How do
you know if they're using their cash the
right way? How do you know if the
executives who are running the company
are doing good things? How do you know
how strong the mo is, meaning how hard
it is for another competitor to come in
and take their spot? How do you know if
they're using the cash flow the right
way? How do you know if they have good
assets and liabilities on their balance
sheets? If that sounds interesting to
you, which unless you're a money nerd,
that's not going to sound very
interesting to you, you should be
looking for something that's going to
appeal to the interest and the time that
you have. Being an active investor is
difficult. This is what Warren Buffett
spends his days doing. He's an active
investor. He loves researching
companies. He loves studying their
financials. He loves studying the
products. He loves studying the
executives at their company. He loves
studying the innovation. He loves
studying the branding of the company.
That's what he's doing. When you're
investing in the stock market, you're
literally buying companies. When you buy
one share of Amazon, you become one of
the owners of Amazon. And if you don't
want to treat it like that, then you're
essentially gambling. Sure, you can make
some money. You might find a cool
company that you like before it pops
off, but you might not. And you might
not have any way of knowing if your
company is a good investment or not. If
that's something you want to do, you
want to invest in individual companies,
fine. But just understand the risk. And
the more research you do, the more you
learn, the more time you spend, and the
more money you spend learning how to do
it, the better you're going to do. But
again, this is long-term investing. I'm
not talking about trading. Talking about
long-term investing. If you want to
invest in individual companies,
understand that that is a real skill if
you want to succeed. The alternative is
being a passive investor. A passive
investor is now instead of you trying to
find the next hot Amazon or the next hot
Apple. Now what you're doing is you're
just investing your money into the stock
market. You're investing your money into
America. And if America grows and our
stock market grows, you make money. And
now you don't really have to try to find
the best time to buy. You don't have to
find the best price. All you're going to
do is set up a system where now every
time you get paid, you're just going to
throw money into the market. And this
can be completely passive. You don't
have to spend any time doing this
besides finding the right funds to
invest in in the first place. Then you
just automate it, set it and forget it.
And so it's much less time, much less
risk because now if you invest in there
are funds for example that will give you
exposure to the entire stock market. For
example, there is an ETF, an
exchangeraded [snorts]
fund called VTI. It trades just like any
other stock on the stock market. But
when you buy one share of VTI, you're in
essence buying the total stock market,
which means now you're just getting
exposure to America and the stock
market. Now you have hundreds or
thousands of companies that you're
investing in. And so if one company goes
bankrupt, it doesn't bankrupt you. It
just gets kicked out and now another
company might come in. It's gets
balanced out by the losers. If one
company goes really big, yeah, that's
going to benefit you, but it's also
going to be balanced out by some of the
losers. So these funds like ETFs, you
can also look at index funds. Some
mutual funds might alo also work. These
funds are giving you exposure to baskets
or groups of stocks. So that way you
don't have to find the perfect company.
But the key to win in this type of
passive investing game is you got to
just keep throwing money into the ETFs
every week, every two weeks, every
month. I am a passive investor and an
active investor. I cannot tell you what
to do. Do not blindly follow anything
that I do. And I don't recommend what I
do to anybody, but what I do is I have a
passive investing strategy and an active
investing strategy because I'm a weirdo
and I like researching companies. Those
numbers are very interesting to me. But
I have a passive and an active investing
strategy. In my passive investing
strategy, every Wednesday, I don't have
a secret sauce as to why Wednesday, just
for me, I picked Wednesdays because it's
in the middle of the week. Every
Wednesday, cash is leaving my bank
account and it's automatically being
invested into my portfolio of ETFs. I
have ETFs that give me exposure to value
companies, things like the S&P 500. I
have ETFs that are giving me exposure to
dividends. This is actually the biggest
piece of my entire passive investing
portfolio. I like dividends because I
like cash flow. Cash flow is the bulk of
my investment portfolio because my
rental properties are there for cash
flow and the majority of my stock market
passive portfolio is there for cash
flow. So now I have the the value, the
S&P 500s. I have the dividend paying
companies, ETFs, and then I have some
investing into innovation. This is a
little bit more of the speculative side.
These are more of like the growth
potential type of companies. And then I
also have ETFs that give me exposure to
international companies, emerging
markets, because that's kind of like a
hedge because if things go down in the
United States, well, some countries that
don't rely on the United States, that
don't rely on the dollar, might not be
hurt as bad. And so, it creates a little
bit of a hedge. Now again, every
Wednesday, cash leaves my checking
account and it's automatically invested
into my portfolio of ETFs. I don't touch
it. I don't think about it. I don't
worry about it. It just happens every
Wednesday whether the market's up,
whether the market's down. And that's
the key to win. Not only do you need the
time now where you're investing your
money into these types of ETFs for a
long time, but you're doing this in a
way where it's consistent, passive, and
automatic. Because if you choose when to
do it, well, you might miss a week. And
when you're just waiting for the best
opportunities, you're not going to keep
investing your money. The way that you
do this is whether the market's up or
down, you're going to keep investing
your money no matter what. The only
change that you're ever going to make is
potentially
when you see markets drop, you could
potentially buy more. But besides that,
you don't change the system. That's how
you win in this passive investing game.
And you just keep throwing more money
into it. Now, this is where you got to
make the decision of number one, where
do you want to invest? What types of
assets? Is it stocks? Is it real estate?
Is it startups? Is it something else?
You got to figure out the assets that it
is that you want to invest in. Second,
do you prefer cash flow, non-cash flow?
Third, are you going to be passive or an
active investor? And now you just kind
of work down the list and you start
taking that money that you're putting
aside towards investments and you put it
to work. Now, if you remember what I was
saying just a little bit ago that there
are three factors that will determine
how wealthy you become. Number one is
the dollars. Number two is the return.
Number three is the time. We cannot
control the time, but you can control
the dollars and the return. When you
spend less or you earn more, that's
influencing how many dollars you're
investing. The next thing that you can
do is influence the return that you're
getting. And that's where now your
investments are going to determine the
types of returns that you're getting. If
you want to get better returns,
generally that means you might have to
take on a little bit more risk. For
example, you have the potential to get
better returns when you actively invest
your money versus when you passively
invest your money. But the higher risk
also comes with the higher potential to
lose more money. And so now, how do you
get better returns? You get more
financially educated because the more
you learn, the more opportunities that
you're going to see. And in addition to
that, what else creates opportunities?
Well, finding distressed assets. If you
find a rental property that's beat up,
that's in an area that's coming up, but
it's just so bad that nobody wants to
buy it, that could give you the
opportunity to buy a good property
that's beat up, that you can fix up at a
huge discounted price. It's the same
thing in the stock market. If you find a
beatdown stock that everybody's selling
that's on the verge of a turnaround,
that can create opportunity for you.
Again, higher risk because this company
could then go into bankruptcy. But if
you can buy it cheap, you can make a lot
more money. And this is where now that
financial education comes in. How can
you find these types of opportunities?
You can learn, you can start
researching, or you can see more broad
market opportunities. When you see a
market crash, when you see a recession
happen, asset prices fall. Why do asset
prices fall? Because people start
selling. People start panicking. People
need money. So they cash out of their
investments. And when people are
selling, that creates an opportunity for
people who are prepared to come in and
buy. So if you want to see higher
returns, you got to get more financially
educated and get more involved with
their investments because that's going
to allow you to get higher returns. And
the higher the returns that you get on
the money that you invest, the wealthier
you will become. And now when time is a
more limited factor, you're going to
have to get more focused on that
financial education. Not just so you can
invest more, but so you can get the
better returns on your money. This
brings me to then the sixth thing that
you have to work on, which is your
income. What happens now to 99% of
people in this situation is you are now
getting into this financial education
game. You're working to put more money
towards your investments. You're working
to invest your money to build wealth.
And now you realize, wow, this is kind
of fun. I'm seeing the [snorts]
opportunity for success. I need more
money to invest my money. This is now it
pays to earn more money because now when
you earn more money, you're earning more
money, not to drive a faster car and
have a bigger home and go on a nicer
vacation, you're earning more money so
you can have more investments that will
pay for your nicer car, bigger home, and
fancy vacations. And this is where now
earning more money is so crucial because
now your time is more limited. You need
to be investing more dollars that way
you can have more wealth. But in order
for you to invest more dollars, there's
only two options. Number one is you can
spend less, which is what we've been
talking about up until now. The second
thing that you can do which can allow
you to make way more money to invest to
have more money to invest is you got to
earn more money. Now, how do you earn
more money? Well, there's an unlimited
number of options here. And the first
thing that I want to say is look, it's
never too late to make a change. This is
what's going to be probably the most
difficult factor in your 40s. And what's
interesting is it's not just difficult
in your 40s. It becomes difficult when
you're 25. People who are 25 say, "Oh
man, I'm committed to working in
medicine. I'm committed to being an
engineer. I'm committed to being an
accountant. I can't change now." You're
25 years old. What are you talking
about? And then you hit your 30s and
you're like, "Dang it, you know, I
should have made that change when I was
25. I don't really want to be an
engineer. I really don't want to be a
doctor. I really don't want to be a
teacher. I really don't want to be an
accountant. I really don't want to be a
technician."
Well, then what happens is you just
stick with it because like you feel like
you've been in this career, in this
industry for so long, you can't make a
change because now you're older. Nobody
wants to hire an older person. You don't
have any other experience. And do you
really want to start over? And then come
your 40s and then you say, "Oh, you
know, dude, I was really young in my
30s. I was stupid for not making a
change when I should have. But now I'm
in my 40s. I've been in this career for
so long. I have so many networks now.
I've built myself and this experience
and I have this this resume that allows
me to have the job that I have. It's not
the funnest thing. I don't really care
about what I do. I'm not making the best
money, but do I really want to like I'm
40 years old. I'm 45 years old. Do I
really want to make a change now? That
what's going to happen when you're in
your 50s. You're going to say the exact
same thing. When you're in your 60s,
you're going to say, "Dude, I wish I
would have made that change in my 40s or
my 50s." Time is going to keep going on.
Period. Like we're not going to stop the
earth from spinning. We're not going to
stop the days or the nights from coming.
That's going to happen regardless. Time
is going to go, but what you do in that
time is something that you can control.
And so if you're not happy what you do,
make a change. What's the worst that can
happen? And if you don't want to just
leave your job, that's okay. Start doing
something in the evenings. Start doing
something in the weekends. That way you
can start learning. If you're an
engineer and you want to go into
medicine, or if you're an engineer and
you want to be an entrepreneur, or if
you're a doctor and you want to go and
start selling cakes on the internet,
that's okay. There's nothing wrong with
that. Start figuring out if you're not
happy with what you're doing. It's not
too late. Even if you're in your 40s,
even if you're in your 50s, even if
you're in your 60s, it is never too
late. And you might surprise yourself at
how many new financial opportunities
you're going to find when you start
doing something that you actually enjoy.
Because when you start doing things that
you actually enjoy, you don't feel the
dread of working. And when you don't
feel the dread of working, you end up
working more. And when you end up
working more, you tend to be better at
what you do. When when you get better at
what you do, you have the ability to
earn more money. And when you have the
ability to earn more money, well then,
you know, you can live a better life
financially. And it can happen very
quickly. People talk about how much I
work. I work a lot of hours. I work
seven days a week. I like working. I
work when I'm on my vacations.
Vacations.
I do it because I don't feel a dread
when I work. Actually, I get stress
relief when I work. I like what I do.
And because of how much I can work, it's
harder for people to compete against me.
And it allows me to also earn more
money. And the funny thing is, I don't
feel stressed out because how much I'm
working because I like what I do. And
this is where now you can create new
opportunities for yourself. Whether it
is a career change, whether it's getting
a certificate, whether it's working
harder at your job, whether it's getting
a second job, whether it's getting some
sort of new qualification that we can
earn more money, there's unlimited
possibilities here. It is not too late
to make a change. And if you don't
believe me, I don't know, I can shake
the screen to get it through your head,
but you got to be the one to believe
that for yourself. That is not too late.
If you don't want to do that, you can
also work to create your own income. You
can try to start a side hustle. You can
try to start a business. You don't have
to quit your job and change everything
in your life and hope that you start
making millions of dollars tomorrow.
That's not how it works. But you can
start on the evenings. You can start on
the weekends. You can start on the
mornings. You can work on a lunch break.
You can find time to get committed to
start learning to be better to thou
creating the new income and doing
something different that will allow you
to live the life that you want. Because
remember, you got to own the assets to
become wealthy. How can you own more
assets? You can spend less or you can
earn more. We talked about how to spend
less. This is where now how can you earn
more money? not so you can drive a
faster car and have a bigger home.
Right? You got this now. So you can
invest more aggressively. And this then
leaves me with number seven, which is
talking about all the other debts that
you have. You can talk about your car
payment. You can talk about your
mortgage payment. You can talk about all
the other debts that you have, the lower
interest rate debts. Because in the
beginning, we talked about your high
interest rate debts. Now, when we talk
about these other debts out there, the
real key now is going to be dependent
about what type of life that you want to
live. Because if your goal is just to be
financially free, you know, I don't want
to have to worry about money. I want to
go to my backyard, never have to worry
about payments again. I just want to be
able to breathe without having anybody
hovering over me and I don't really care
about having the nice stuff. I don't
really care about the exotic things. I
just want to live free. If that's you,
then it makes more sense maybe for you
to pay down the debt. I said maybe for a
reason. I'll get to why in just a
second. If you say, you know what,
Jasperit,
I want to change my life completely. I'm
tired of living like crap. I want to
have the nice things. I want to drive in
Mercedes, BMWs, Rolls-Royces. I want to
fly first class. Maybe I want to even
fly private. I want to have the nice
exotic things. I'm so tired of living
like this. Okay, that's fine. But the
way you're going to get there is by
taking on a little bit more risk than
just paying down a 4% interest rate
debt. And so now you got to figure out
what type of lifestyle do you want to
live and what is going to make the most
sense financially. And the reason why is
because now you got to take a look at
your debts. Lay out what interest rates
are you getting? If you got a mortgage
back in 2020 or 2021 and your mortgage
is 2.8% a year.
Now you're debating what should I do?
Should I pay down my mortgage faster or
should I do something else with my
money? Well, if one of your options is,
I can save my money into a highinterest
savings account that pays 4 and a.5%
and my mortgage is 2.8%.
If this guaranteed savings return
interest is paying a higher interest
rate than my mortgage, well, then you
can just put your money into a high
interest savings account and then use
the interest from the savings to help
pay down your mortgage, right? because
at that point financially you have very
low risk to get this return from your
savings account and so now you can get
this return and it's better for you to
get that return on your savings because
there's a higher rate of return than
your debt. See when you put your money
into the stock market or into the real
estate market now it's different. Now
the goal is to get 7 to 10% a year but
you might also get minus 5%. which is
where now if you have that low interest
rate debt and you just want to be
financially free then sure it makes
sense to maybe not invest the money into
the stock market or the real estate
market because there's a chance you
might not make any money in which case
paying down the debt can give you a
guaranteed return and can give you that
that lifestyle faster. But when you have
the high the high interest savings
accounts that are paying you 3, four, 5%
and if that's more than what your debt
interest rate is, well now you might be
better off by not paying down that debt
faster because you can get the interest
from your savings and that might help
you actually earn more and use those
profits to pay down that debt even
faster. And so this is where you just
got to figure out what type of lifestyle
that you want to live. Again, if you
want to live big, you want to have the
nice things, you want to you got to be
willing to take on more risk. And taking
on more risk means maybe instead of
paying down the debt right now, you got
to be investing into things like
yourself that's going to help you earn
more money. One of the best investments
that you can make is in yourself. That
means start by spending your time to
learn. Watch YouTube videos, listen to
podcasts, listen to articles, read books
about ways to earn more money, ways to
build a business, ways to grow a
business, ways to scale a business, ways
to be creative, ways to be innovative.
Then as you learn, you start doing. You
start investing into your business idea.
And I can pretty much guarantee that the
first idea is going to be a flop. But
you got to get started. You got to have
the first to have the second to have the
third. And then as you do, you're going
to learn more. And as you start to grow,
that's when you can start investing into
more education. Hire a coach, hire a
consultant, somebody who's 5 years ahead
of you, 10 years ahead of you, because
they can teach you a lot that we don't
have to go through the five or 10 years
of pain and struggle that they went to.
Yeah, they're expensive. I get it.
online coaches, uh, business coaches,
investment coaches are expensive. I've
hired a lot of them. I've paid a ton of
money in education, but if they can help
you reduce how much time you have to
spend learning to do it yourself, it
might be a very good investment for you.
Some of them might be crap. Some of them
might be really good. And then you keep
investing and building in yourself. And
this is where now you are building that
trajectory to build that wealth because
now you will own the assets. you have
the right income and you're spending
money in a smart way that's allowing you
to scale how many investments you have
because that's how you're going to
become wealthy. Building wealth is all
about the velocity of your money. How
fast can you grow your money from $1,000
to $10,000? And your job now is to
figure out how you can accelerate the
velocity of your money. And in order for
you to change the trajectory to go from
slow and steady growth to fast and
booming growth is to focus on these four
things. Number one, you got to focus on
your mindset. Number two, your
commitment. Number three, your
discipline. And number four, your risk.
Let me start by talking about your
mindset. Because the reality is, look,
we live in a day and age where people's
mindsets are really influenced about
what's happening outside, what's
happening in the media, what's happening
in the traditional media, and what
people feel the consensus of on social
media. And people generally, I'm not
talking about everybody, but you kind of
have this like general consensus of,
well, I'm not rich, so I hate people who
are rich. And I can pretty much
guarantee that when you carry that
mindset, it's going to be impossible for
you to ever become rich. Now, how do I
know this? We remember that whole
submarine incident recently, which was
so devastating, so heartbreaking. It
doesn't matter if someone's rich or
poor, something's going on. There was a
lot of things happening in the world,
but when somebody loses their life who's
innocent, that's sad. And when you read
through the comments, most of them were
solely focused on the incomes or wealth
of people that were inside of the
submarine. And what did they say? Oh,
these are rich people problems. Why are
we trying to help rich people? Oh,
that's what happens when you're rich.
And I can guarantee you that when you
have that mindset towards rich people
that, oh, they're bad because they're
rich, you are never going to have the
opportunity to be rich because naturally
we want to be good people. And if being
rich is being bad, why would you want to
go out of your way to become bad? And
this is where you got to understand,
look, money does not make you a good
person. Money doesn't make you a bad
person. Money is just a tool. It
amplifies who you are. When you give a
good person more money, they have a tool
to do more good. When you give a bad
person more money, they have a tool to
do more bad. And so, if you want to be
wealthy, all you need is more money. And
more money is not going to make you a
bad person. It's not going to make you a
good person. It's going to amplify the
type of person that you are. And instead
of hating the people who have money, you
got to start asking the question of how
did they get the money in the first
place. And that simple switch in your
mindset is going to completely change
the trajectory of your life. And you
might be thinking, oh, just that's just
a bunch of woo wah stuff. You can't just
change your life by thinking
differently. Yes, you can. And I'm not
talking about this abundance of I'm just
going to pray on money and money is
going to come and fall on my laps.
That's not what I'm talking about. I'm
talking about changing the way that you
think. There are some people out there
who think the world is against them. And
when you think the world is against you,
what's going to happen? Well, you're
going to constantly be paranoid and not
want to build trust with people, not
want to network with people, not want to
build businesses and relationships with
people because you're going to think the
whole world's going to be against you.
And as soon as something goes wrong, as
soon as something happens in that
business, I knew it. I knew the
government was going to be after me. I
knew customers were going to hate this
product. I knew that the internet was
going to not like this. I knew that
people were going to try to shut me
down. Well, you could change that same
person. If you put them in a different
mindset, it could be completely
different because guess what? Every idea
is going to have problems. People are
going to hate on every idea in the
world. You know, there's a meme on the
internet that says, "If you don't want
to upset people, just sell ice cream or
something along those lines." Well,
guess what? Even if you sell ice cream,
someone's going to be mad. People are
going to have issues with everything
that you do. They're going to have
issues when you don't do things. They're
going to have issues when you do do
things. That's a part of the world.
There's going to be issues of
regulations. There's going to be issues
of a lot of things. And so now, if you
expect that to happen and that's going
to be that overwhelming force of why you
can't become successful, you can
guarantee you're never going to become
successful. And this is where that
mindset of now understanding
the way you think is going to influence
what you do. And what you do is going to
influence what you get. But it all
starts with their mindset. Right? I call
this the minority mindset because the
minority mindset is about thinking
differently than the majority of people.
And the majority of people, especially
in today's day and age, we live in this
complaining society. We live in this
self-mering society. We live in this
victim mentality. We live in this
society where we want to blame instead
of wanting to change. Because guess
what? It's easier to blame, right? When
you feel crappy about where you are,
especially financially, it's easy to
blame your government and the boss. Man,
it's because of all these taxes that we
have to pay and all this government
spending that we're broke. It's because
my boss isn't paying enough that I'm
broke. It's because my landlord keeps
raising the rent that I'm broke. When
what you'll see is some people in the
same situation will be able to win
despite all that other crap. Because
guess what? There's a lot of crap in the
world. Period. Now, either you're going
to go in with that mindset of despite
the crap, I'm going to win or I'm going
to let the crap just parade on me. And
you got to make that decision for
yourself. Which one do you want to be?
And this starts here. And I know this
one is difficult because I've
encountered a lot of different people
and worked very closely with people with
very different mindsets. And even if
somebody is not skilled, they have no
idea of how to do a particular task. You
might have very little talents, but if
you have the mindset, I'll do whatever
it takes, you're going to have a much
better shot at succeeding than somebody
who's very educated, very skilled, very
talented, but believes the world is
against them and everything is against
them. It's not about the skill and the
talent, but it's about your mindset
towards things. And then now, if you're
in the situation, you got to be honest
with yourself. I'm not telling you to go
immediately change a mindset because
that's not how it works. I I get that.
in order for you to change your mindset.
If you feel like, you know what, I feel
negative. Yeah, I I do complain about
other people. I do complain. I get
jealous when I see people who are rich.
I get envious when I see people who are
rich. I get upset when I see rich people
doing things. I get upset when I see
people have nicer things than me. I wish
I had them nicer things. Okay. All
right. I'm just saying accept that and
understand that because this is now
going to be a process. And this is where
you got to start. And the way that you
do that now is you got to start diving
into that personal development side of
things. And now look, you're not going
to change your mindset tomorrow. That's
not how it works. But you got to start
absorbing things to change the way you
think. Because if you are constantly
hating on other people, you're hating on
other people's success, you wish you had
the success and you just feel miserable
because you don't have it and you're
constantly complaining. And if you don't
know this yourself, ask other people. If
people around you say, "Man, you got a
negative attitude." Or they're telling
you this, take that for what it's worth,
and start reading some personal
development books. Start listening to
personal development podcasts. Start
watching personal development videos,
things about mindset, things about
growth mindsets, things about thinking
bigger and abundance. And again, with
abundance, I'm not saying you got to sit
there and just meditate that, oh,
everything's going to be bigger and
better. No, that's not what I'm saying.
I'm talking about just thinking that
there's more opportunity out there.
Because when you think there's more
opportunity out there, you're going to
start taking actions very differently.
And when you start taking actions
differently, you're going to see a whole
new world of possibilities.
And
the life kind of works in this very
weird way where we think that your
trajectory in life is going to be this
linear transaction. But that's not how
it works. Life and success kind of work
like a pinball machine where when you
shoot a pinball, the pinball just goes
everywhere. It goes up, down, circular,
sideways left right circular
straight, up, back. You never know where
you're going to go next. And the most
weird things might take you to a
different trajectory, but that is what
allows you to see the opportunities.
There was somebody who was saying that
success and opportunities are like
buses.
And you only learn bus schedule when you
actually have to get somewhere. That's
when you're going to actually notice the
bus and be able to get on the bus. Those
buses keep running even when you're not
paying attention to them. But the only
time you're ever going to pay attention
is when you see the bus, when you see
the bus schedule. But in order for you
to see the bus schedule, you have to be
willing to see the opportunities in the
first place. I started off throwing
parties in college. In fact, before
parties, I was playing a drum at Indian
weddings. Playing that drum at Indian
weddings got me to meet DJs. Meeting DJs
got me to start hosting parties. Hosting
parties got me to realize I hated
hosting parties. But that gave me money
to start investing in real estate. When
I started investing in real estate, I
got my real estate salesperson's
license. When I got my real estate
salesperson's license, I became a real
estate wholesaler. When I became a real
estate wholesaler, I realized that I
needed to do something more scalable.
When I started doing that, I started
getting more on the internet. I started
e-commerce stores. When I started an
e-commerce store, I got screwed over.
When I got screwed over, I started a
class on how to launch a business
without getting screwed over. When I
started that class, people said I need
to get on social media, so I got an
Instagram. When I got Instagram, people
said I should start a blog. But English
is my second language, so I didn't want
to start a blog. Instead, I started a
YouTube channel. Then I started a
YouTube channel. And that gave me the
opportunity to start something like
Briefs Media. When I started Briefs
Media, that opened up even more doors
for me. So, you can see it was a
pinball. I go from one place to the
other to the other to the other. And
when I was 18, 17, 19, I would have
never predicted where I would be in 5
years, 7 years, 10 years from then. But
this is where you cannot expect what's
going to come next and think, "Oh, this
is not going to help me get to where I
want to go." You just got to get
started. Life is a pinball machine, but
you have to start by changing that
mindset. That way, you can actually get
to the next place that you want to go.
The second thing that you have to work
on if you want to increase the velocity
of your wealth is your commitment. And
this might be as a business owner, this
might be as an employee, this might be
as an investor. And the biggest thing
that I hear because especially in
today's culture is, "Oh, I don't want to
do too much at my company because uh I
don't like this idea of doing more than
what I'm paid for." Right? We talked
about quiet quitting. We talked about
all of these things happening in our
culture right now where people are like,
"I don't feel like I'm treated good
enough in my company." But do you want
to know what is a common trait amongst
99.9% of leaders, 99.9% of executives,
99.9% of overly compensated people is
they had to go through a whole bunch of
time of being undercompensated for what
they did. These are the people that were
the overachievers that did more than
what they were paid for, that did more
than what they were asked for, and went
out of their way to succeed. So now, if
your goal is to be overpaid, the way
that you become overpaid is by being
underpaid first. And you might feel
like, what are you talking about? You
mean I have to go to work and work
harder and do things for my boss and
make my boss richer? Yes, if you are an
employee, the best way to get richer,
meaning through your income now, through
investments, right? We know that
investments are how you really become
wealthy, but the best way for you to
make more money is by making your boss
richer. Now, that might seem really
counterintuitive, but the reality is if
you are the person that gets into work
early and you're overachieving and
you're working harder and you're
outperforming everybody else, who's
going to be the first person to get that
promotion? You. Now, you might be
saying, "Oh, there's office politics."
If your office politics are constantly
overlooking you and treating you bad, go
to a new company. Every company is not
bad. Are there some crappy companies out
there that pick the wrong people
consistently and that are favoritising
favoritising f picking whatever the word
is? They're picking the wrong people
that leave the company. Go to a company
that will appreciate your hard work and
your dedication. Because when you are
the most valuable person in your
department, the person who's going to
get that bigger raise, the bigger
promotion, that's going to be the last
to get laid off, that's going to be the
person that gets the most praise
financially is going to be the person
who's constantly busting their butt.
Because from a company's perspective,
what they want is valuable employees.
And when you become more valuable,
they're going to be willing to pay you
more. And the reason why they're going
to be willing to pay you more is because
you have something that 99% of the other
employees don't. And in order for you to
do that, you got to make that commitment
to put in the work. If you're just
trying to coast by, I can guarantee you,
you're always going to be struggling
because that's the mindset you have
towards everything in life. If you're
just trying to get by and do the minimum
amount of work, you're never going to be
able to see the success that you want
financially, that real financial
success. If you're okay with where you
are, then fine, keep coasting. You want
to be average, fine, keep coasting. But
if you really want to scale, you really
want to earn more, you want to see that
top level. You want to be the top food,
the top dog in your company, you're
going to have to outwork people, you're
going to have to outperform people.
You're going to have to outdo people and
you're going to have to put in that
commitment in order to do that. And
sometimes, guess what? You're not going
to get compensated right away, but
you're going to have to keep doing
things that people don't see. When I
first started my YouTube channel, it's
kind of funny. I think it took me almost
a year and a half of constantly making
my videos before I got my first YouTube
payday. That meant I was putting out
three videos a week, week after week
after week, month after month after
month after month after month after
month after month after month after
month. And let me remind you, I am a
licensed attorney. My time is valuable.
I could charge a lot of money to review
contracts and to do business legal work.
But I kept making YouTube videos. And
for the first eight almost 18 months, I
didn't get my first check. And when I
got my first check, it was a few
hundred.
My first check of almost a year and a
half worth of work. That's a lot of
commitment to something that's not
making me any money. But today, guess
what? I'm getting overpaid on YouTube.
Why? Because I got underpaid in the
first place. If you want to get
overpaid, you got to get underpaid in
the first place and put in the work that
other people are not willing to do. The
third thing that you have to fix if you
want to accelerate your velocity towards
wealth is you got to fix your
discipline. Now discipline is a lot of
things, right? Once you start building
that commitment, you're going to be
working on that discipline to get to
work. But it's also the discipline
financially. Because the reality is
becoming wealthy is as much mindset as
it is what you do with your money.
Because the thing that holds so many
people back from becoming wealthy is
you're telling me I got to invest my
money today and invest it for years
before I see any return. Yeah, that's
the whole name of the game. And people
have to see that light at the end of the
tunnel right in front of them because
they need to see the return today. I
need that instant gratification. I need
to see the growth today. I want to
double my money in six months. And when
you don't have the discipline of knowing
to trust the system, trust the process,
and continuing putting in the reps. It's
very hard to do that. It's the same
reason why it's so hard to lose weight
because unless you see the the the
success quickly, it's very hard to stay
committed. But the reality is we know,
right? If you want to get in shape and
lose weight, what do you got to do? You
got to eat better. You got to eat
healthier, you got to put in more
exercise, period. Right? Uh now, you can
get into all the nitty-gritty of the
types of nutrition and the types of
diets and the types of exercise that you
do, but at the end of the day, you got
to eat better. You got to work out more.
You got to put in more reps. And now,
maybe in the beginning, you start to see
a little bit of success, right? Because
when you go to from really fat and
unhealthy and you hit the gym for the
first time and you start eating salads
for the first time, yeah, you might lose
some weight very quickly. But then you
kind of hit this plateau where yeah, you
got two months of solid success. Now
you're in month three and now things
starting to get hard because now yeah,
you're not eating as many Twinkies and
Ho Hos anymore. You're not eating the
pizza like you were anymore. You're
starting to miss the McDonald's. You're
starting to miss all the unhealthy
foods. And you're also like, you know, I
I haven't really noticed a difference in
my body in the last two weeks. Do I
really want to keep putting in this
work? And now you're going to be put to
the test of what do you really want to
do? And the people that are going to win
are going to keep putting in the reps
because you got to keep working. And of
course, yeah, you got to keep improving
the types of reps that you're doing. You
got to work on your physical and
financial education, but you got to keep
putting in them reps. And it's the same
thing financially. You got to keep
putting in the reps. You got to keep
investing your money. Sometimes you're
going to see down markets where you're
going to feel like you're losing money.
You got to keep putting in the reps.
Sometimes you're going to see bad things
happen in the economy. You got to keep
putting in the reps. Sometimes you're
going to see the economy booming. You
got to keep putting in the reps.
Sometimes you're going to lose your job.
You got to keep putting in the reps. You
got to keep doing the things that are
going to make you wealthy, right? You
got to keep investing your money. You
got to keep living below your means. You
got to keep working to build up the
savings cushion. You got to keep working
to build up the cash flow because that's
what's going to make you wealthy. And in
the beginning, sure, it's exciting. Oh,
I'm going to get rich. And then and then
and then you started getting those
offers of how you can get rich in six
months with the six-step formula. All
you got to do is pay me $997.
Now, there's not I'm not hating online
education. I actually love a lot of
online education, but there's a lot of
crap out there, too. And if all you're
trying to buy is that way to get rich in
six months, what do you think is going
to happen? Because now you're trying to
get away from the real process. You
cannot you cannot bypass hard work. You
cannot bypass the commitment. You cannot
bypass the sacrifice. You cannot bypass
the mindset. You cannot bypass the
discipline. Period. It takes discipline
if you want to be able to succeed. And
you got to make sure you're putting in
the reps even when things are hard. If
you really want to be able to see that
success financially, physically, in any
part of your life, even in your
relationships, guess what? Things are
going to get hard with your wife, with
your [snorts] husband. Things will go
through rough patches, but you got to
keep loving that spouse. You got to keep
coming back and showing them love if you
want to be able to make it work.
Everything is going to go through tough
phases, but you got to be willing to
have that discipline to keep coming back
and keep putting in the reps. And the
fourth thing that you have to work on if
you want to increase the velocity of
your money is your risk tolerance. The
biggest thing that I hear, the biggest
criticism that I hear about investing is
what happens if I lose money? What
happens if I buy in an investment and
then it goes down? What happens if the
economy crashes? What happens if the
market crashes? Well, let me tell you
this. You are going to lose money.
Period. When you invest your money,
everybody will lose money at some point.
Period. That's not just a possibility.
It's a fact. Every single person in the
game has lost money at some point. But
when you don't take that risk, you're
also guaranteed to lose money because
now, not only are your savings going to
lose value to inflation, but you're also
missing out on huge opportunities.
That's a loss, too. Because if you don't
invest your money and you don't see that
growth, there's a risk to that because
you might be broke now, scared to take
that risk and then you're going to be
broke 10 years from now, too, because
you didn't take that risk. And so, this
is where now you have to understand risk
is associated with the game. But that's
how you learn. You learn through
mistakes. You learn by putting your skin
in the game. You learn by actually
putting your money to work. I have lost
money in investments. I've talked about
this openly. I made a video on my
YouTube channel talking about my worst
real estate deal ever. If you haven't
seen it yet, go ahead and watch it. see
what it's like to lose money. I will
walk you through the deal. I walk you
through the deal and show you all the
things that went wrong because I was
early. I was young when I bought that
deal. I did not know what I was doing
and I made every mistake possible. And
you'll see the stress and the financial
stress that I went through. It was not a
fun time, but I learned so much in that
one deal that you cannot bypass that
work. Yeah, it was very stressful when
it happened. I can look back and laugh
at it now. I can look back and talk
about all the funny things that happened
now, but during that time it was very
stressful. I was losing a lot of money
at a time when I didn't have that money
to lose. But that's a part of the game.
You got to be willing to go through the
process. And what's interesting is as
you get bigger, the the risk also gets
bigger. When I was first starting off in
my event planning companies, I my first
party was a flop because we had some
issues with the original club that we
were going to work with. That lost me
maybe a thousand dollars, which was like
a ton of money for me back then. That
was pretty much all the money that I had
in my bank account when it was my worst
real estate deal ever. Now we're talking
tens of thousands of dollars, which was
again pretty much everything that I had
in the bank account. It was a lot of
money. And then going forward even more,
you know, when I was running the
minority mindset trying to build a blog,
I spent half a million dollars trying to
build a blog because I hired the best
consultants. I built a team and I was
just trying to throw money at the
problem trying to fix it. It was a
complete flop. $500,000 down the drain.
Yes, risk comes, but without that risk,
you're never going to be able to see the
growth. And this is where you have to
get started, but also understand that
those mistakes are not killers of your
total financial success. You might have
lost a deal, but you'll lose the
investment. You'll win the investment
game if you keep coming back. And yes,
you're going to keep learning. Every
phase in your life is going to have new
risks, new lessons, and new education.
But you got to be willing to come back
each and every time. And the reason why
all these topics are so important for
you to understand right now is because
of all the risks that we have in our
economy right now. The United States of
America needs a recession to save our
economy. At least that's according to JP
Morgan Chase Bank, who says that our
economy needs a recession. Let me read
you a JP Morgan Chase Bank, the largest
bank in the United States, said in a
note to their investors. They said,
"While the United States economy's
recent resilience may delay the onset of
a recession, we believe that most of the
lagged effects of 2022's monetary
tightening have yet to be felt, and
ultimately a recession will likely be
necessary to return inflation to target.
What does that mean?" In 2022, the
Federal Reserve Bank started raising
interest rates for the first time. We
started off slow with those 25% interest
rate hikes, the 0.25% interest rate
hikes. Then we got more aggressive with
the 75% interest rate hikes and we
continued to do that throughout all of
2022 and we're continuing or we have
continued to raise interest rates a
little bit in 2023. And what JP Morgan
Chase Bank is saying is that we haven't
felt the full effects of last year's
interest rate hikes and we're still
raising interest rates now. Now in order
to bring inflation down right the Fed
has to raise interest rates and there is
a lagged effect a delayed effect to the
pain from higher interest rates which
you haven't felt yet. Uh the general
rule of thumb is that it takes somewhere
between 12 to 18 months to feel the
effects of interest rate hikes. We're
now starting to feel the pain of 2022's
interest rate hikes which JP Morgan
Chase Bank says that we haven't fully
felt yet. And they're saying that number
one, we still have to feel more of that
pain. And number two, in order to really
bring inflation down, we're going to
have to see more of this economic pain,
what they said, a recession that it
might be necessary in order to bring
inflation down. And the reason why is,
well, you can think about it, especially
with housing prices because CPI or
inflation data is made up of a lot of
different components and one of the main
components and that is housing. So when
you have a lot of people with money to
go out and buy a home with low interest
rates, what happens? Everybody wants to
buy a home. Now you have a home listed
for $400,000. You have 35 different
offers and the home sells for $475,000.
Home prices go up. Now home prices go
up. That data goes to the inflation. The
CPI data which says home prices went up.
Inflation is higher. When inflation is
higher, the Federal Reserve Bank has
more fuel to continue raising interest
rates. So now when you have say higher
interest rates, demand starts to go
down. But it hasn't gone down to the
point where we're seeing inflation
really fall to the levels that the
Federal Reserve Bank wants. This is why
the Fed keeps saying that bringing
inflation down has not happened yet and
it's going to take more work. So now
what happens if you have a recession? If
you have a recession now, that means the
economy is slowing and generally that
would mean that less people are going
out to buy homes and generally that
would mean that well sellers would be
having to cut the prices of their homes
to get their home sold. Cuz we've heard
a lot of news, especially when the stock
market's going up, that the economy is
booming and everything is great. And
what does that really mean? Because what
you have to understand is that
recessions don't happen when people
expect them to happen. They happen when
people stop believing that they're going
to happen. And what JP Morgan Chase Bank
is saying is that the investment into
equity stocks still does not seem like
the best investment for them because of
all the factors that they highlighted.
They talked about the likelihood of a
recession coming in the coming quarters.
What does a recession do? That generally
brings asset prices lower stock prices
lower. So because of that they said this
might not be a good time for them to be
dumping a ton of money into the general
stock market. The second thing they said
in that same sentence is higher interest
rates. What do higher interest rates do?
They make borrowing more expensive. They
cool down demand. And what they're also
saying is that we still have to feel the
full effect of the higher interest
rates, which we haven't felt yet. So,
they're saying that we're going to see
more pain coming because of the higher
interest rates. Third, tightening
liquidity. Tightening liquidity means
less money entering our economic system
because banks are less likely to loan
money. Banks are going through their own
regulations to bring less money into the
economy. That means less spending, less
ability for people and companies to buy
assets, less ability for people and
companies to spend. Less spending means
less economic growth because our
economic system is designed on spending.
The more money you spend, the richer
somebody else makes. And when you have
tightening liquidity, there's less
spending ability, which means people and
companies have less ability to spend
money, which means less growth in the
economy. And then they said rich
valuations which means essentially that
they still believe that the stock market
is overvalued. They say the stocks
essentially companies valuations are too
high and because of that they're not
investing as aggressively into equities
right now. This is directly from JP
Morgan Chase Bank. Now you don't want to
blindly follow what they do. You don't
want to blindly follow what I do. You
don't want to blindly follow what
anybody does. But rather understand the
different opinions out there. That way
you can make the best decisions for
yourself. Because guess what? When the
stock market is booming, you start to
see the sentiment that, oh, the economy
is not going to see any recession, that
the world is great, everything is fine,
and nothing can go down. As soon as you
start to see the stock market slightly
go down, things flip. Everybody says,
oh, we're going to enter a recession,
everything is bad, everything is going
to go wrong, the whole world is going to
end. And this is where you as a
financially educated person have to be
about to cut through the noise, cut
through the emotion, learn from
different people. Some people think that
the world is going to end. Some people
think that the world is going to boom
and the economy is going to boom and you
have to be able to find the right
information to help guide your
investments. Instead of being an
emotionally driven investor, be an
educated and financially driven
investor. The housing market is about to
shift again and this time it's for
reasons that you might not expect. And
this next shift comes at an interesting
time because housing affordability is at
the lowest level we have seen since the
early 1980s. And for the first sustained
period in history, it is cheaper to buy
a new house than it is to buy a used
house.