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

[00:00] I recently put out a video about what

[00:01] you can do in your 30s if you don't have

[00:03] any investments to get started to become

[00:05] wealthy. And the number one type of

[00:06] comment that I got in that video is,

[00:08] "What do I do if I'm in my 40s?" Because

[00:10] guess what? If you're in your 40s, you

[00:12] don't have as much time as somebody in

[00:13] their 20s. Well, the good thing is there

[00:15] are three things that will determine how

[00:16] wealthy you'll become. Number one is the

[00:18] dollars. How much money do you invest?

[00:20] Number two is a return. How fast can you

[00:22] grow your money? And number three is

[00:24] time. How long do you have for your

[00:26] money to grow and compound? Well, the

[00:29] one thing, the one factor that you

[00:31] cannot change is time. None of us can go

[00:33] back in time and start investing when

[00:34] we're 19 or 20 or 25 years old, but we

[00:37] can get started today. The thing that

[00:38] you have to remember is that you can

[00:40] make up for an imbalance in one of these

[00:41] three factors by putting more weight on

[00:43] one of the others. So, if you have less

[00:45] time, you can increase how many dollars

[00:47] you're investing or you can increase the

[00:48] return that you're getting. If you don't

[00:50] have enough dollars to invest, you can

[00:52] increase the type of return that you're

[00:53] getting. And that's what I'm going to be

[00:54] going over in this video. Because if

[00:56] you're in your 40s, your time isn't as

[00:58] much as somebody who's 25. But that does

[01:01] not mean that there's no opportunity for

[01:02] you to become wealthy. But it does mean

[01:04] you're going to have to get laser

[01:06] focused and extremely focused on

[01:08] becoming wealthy. And that requires some

[01:10] sacrifices, some hard work, and putting

[01:12] your money in the right places. And the

[01:14] first thing you want to do is you have

[01:15] to start by assessing your finances

[01:17] where they are right now. Number one, do

[01:19] you have any savings? Number two, do you

[01:21] have any investments, including a 401k

[01:24] or an IRA? Number three, do you have any

[01:26] debts, and what kind of debts are they?

[01:27] Number four, what is your income

[01:30] combined? Number five, are you tracking

[01:32] your money? Number six, what legal or

[01:34] financial shields do you have? These

[01:36] legal or financial shields could be

[01:37] things like a will, an estate, a trust.

[01:40] These could be things like LLC's and

[01:42] different insuranceances to protect you

[01:43] in case you get sued, to protect you in

[01:45] case something bad happens. Now, this is

[01:47] where the first thing that you have to

[01:48] do in order to start improving your

[01:50] finances is you got to get a picture of

[01:52] where you are right now because

[01:54] everybody's going to be in a different

[01:55] boat. Somebody's going to have $3,000

[01:57] worth of debt, no savings, no

[01:58] investments. Somebody else is going to

[02:00] have $40,000 worth of debt with $100,000

[02:03] worth of assets. And somebody else might

[02:04] have no debt and half a million dollars

[02:07] worth of investments put aside. And this

[02:08] is where you got to create that picture

[02:11] of where you are today and where you

[02:12] want to go. And the way you want to

[02:14] start this is you take a piece of paper,

[02:15] take a Google sheet, does not matter.

[02:17] And you want to write down these

[02:18] numbers, right? Number one on the top,

[02:20] what is your income? How much money are

[02:22] you making? And what are the sources of

[02:23] this income? This could be a job. This

[02:26] could be a business. This could be your

[02:27] investments. What is the income that

[02:29] you're making? Then below that, you want

[02:31] to write down your expenses. Now, this

[02:33] is going to be a detailed list of your

[02:36] expenses. You want to take a look at

[02:37] your credit card statements, your debit

[02:39] statements, and your bank statements to

[02:40] see where is your money going. Is it

[02:42] going to restaurants? Is it going to

[02:43] groceries? Is it going to gas? Is it

[02:45] going to your car payments? Is it going

[02:46] to your mortgage? Is it going Write down

[02:48] all the different places where your

[02:49] money is going? Categorize it. That way

[02:51] now you can see your income. Then you

[02:53] see your expenses. Then after the

[02:55] expenses line items, that's where you

[02:57] want to write where else your money is

[02:58] going. How much money are you putting

[03:00] towards your investments? How much money

[03:01] are you putting towards charity? How

[03:03] much money did you put towards your

[03:04] savings? How much money did you put

[03:06] towards anywhere else that's not listed

[03:08] above? Maybe you're saving money for a

[03:09] down payment on a home. Maybe you're

[03:10] saving money to buy a car. Maybe you're

[03:12] saving money to buy a watch. Write that

[03:14] there as well. That way you know exactly

[03:15] where your money is going. Now you have

[03:18] a picture of where your money is going.

[03:21] And then you should also be writing down

[03:22] all of your debts and all of your other

[03:24] assets here as well. This is going to

[03:26] give you a starting point because now

[03:28] you can take a look at this and say how

[03:30] far are you from being able to become

[03:32] wealthy? Because remember three factors

[03:34] time, dollars, and return. We can't

[03:37] change the time, but we can influence

[03:39] the dollars and the return that you get

[03:41] on your money. And this is where now the

[03:43] most successful place to start is by

[03:46] being able to invest more dollars. The

[03:47] more dollars you invest, the wealthier

[03:49] you will be able to become. Period.

[03:52] Because well, if someone's investing

[03:53] $1,000 and somebody else is investing

[03:55] $5,000, you have the ability to see more

[03:58] return on your money if you can invest

[04:00] more money, assuming you invest your

[04:01] money into a good investment. So now,

[04:03] how could you invest more dollars?

[04:04] you're going to have to figure out

[04:06] either a how can you earn more money so

[04:08] you have more money to invest or b how

[04:10] can you cut back on your expenses? And

[04:12] this can be very difficult especially in

[04:14] if you're in your 40s because now you

[04:16] feel like you're established in your

[04:17] career and you don't want to be cutting

[04:19] back now to start putting money aside

[04:21] towards your investments. But you're

[04:22] going to have to get real with yourself

[04:24] and we're going to go over some numbers

[04:25] where you're going to have to put in the

[04:27] sacrifice right now. do whatever it

[04:30] takes because if [snorts] you do not

[04:31] have a solid plan towards building

[04:34] wealth or retirement now, you are going

[04:36] to have to get extremely committed

[04:38] because you don't have the same time as

[04:40] somebody who's 21 or 25. And so you have

[04:43] to get extremely committed and make

[04:45] double the sacrifice because if you want

[04:47] to be able to live wealthy, live

[04:49] financially free, and not have to worry

[04:51] about money anymore, you're going to

[04:52] have to put in that sacrifice now. And

[04:54] yeah, it's not as fun to do that when

[04:56] you're in your 40s as compared to when

[04:57] you're in your 20s. But either you're

[04:59] going to look back when you're in your

[05:00] 50s and 60s and say, "Thank God I made

[05:02] the sacrifice when I did." Or you're

[05:04] going to look back and say, "Man, I wish

[05:05] I did." And that's going to be the

[05:07] decision for you to make. So you got to

[05:08] start by assessing the situation that

[05:10] you're in right now. And then the second

[05:11] thing that you have to do is you're

[05:12] going to have to build the order of

[05:14] operations now of how you are going to

[05:16] get the wealth and the financial freedom

[05:18] that you want. We're going to build out

[05:20] these order of operations. And then

[05:21] number three is you're going to have to

[05:22] attack this order of operations. So

[05:24] you're going to assess, build the right

[05:26] order of operations, and then attack

[05:27] this order of operations. And now when

[05:29] you're talking about this order of

[05:30] operations, there are seven things that

[05:33] you need to work on. The first thing

[05:34] that you need to do is you have to make

[05:36] sure you have your base foundation

[05:38] built, your base savings. Number two is

[05:40] you have to attack the highinterest

[05:41] debts. Number three is you have to build

[05:43] a financial system. Number four is you

[05:44] have to make your lifestyle adjustments.

[05:46] Number five is you have to manage and

[05:48] create the right investments that give

[05:49] you the best rate of return possible.

[05:51] Number six is you have to look at your

[05:53] income. And the number seventh is when

[05:54] you're going to look at your other

[05:55] debts. So, let me start by building that

[05:57] financial base. Starting with building

[05:59] that base savings. If now you don't have

[06:02] any savings, and by savings, I mean an

[06:04] emergency savings cushion that's there

[06:07] not to make you rich, that's there not

[06:08] to help you buy investments, that's

[06:10] there not to help you buy a car, that's

[06:11] there just to protect you against an

[06:13] emergency. Your emergency fund, as some

[06:15] people like to call it. If you don't

[06:17] have any savings, the first thing you

[06:18] got to do is save $2,000 ASAP. Because

[06:22] if you don't have $2,000 saved up, you

[06:24] are in a financial danger zone. Because

[06:27] what happens to so many people now in

[06:28] this instance is when you have no

[06:30] savings put aside, guess what? Life

[06:32] happens. And by life, I don't just mean

[06:34] someone's having a baby and they got to

[06:35] go pay for a baby shower gift. I mean,

[06:37] your car breaks down, your AC breaks,

[06:38] your window breaks, your kid breaks

[06:40] their arm. Something happens. And that

[06:42] something is expensive. And when you

[06:45] don't have savings to cover that

[06:46] expense, well, what do you do? You put

[06:48] it on your credit card. Now, not only do

[06:50] you have to pay that expense back, but

[06:52] then you got to pay it back plus 19%

[06:54] interest. Which means instead of paying

[06:55] that $1,500 to fix the problem, you now

[06:58] have to pay $2,200 because you had to

[07:00] pay the $1,500 from your credit card and

[07:02] then another $700 in interest because it

[07:04] took you so long to pay it back in the

[07:05] first place. So, the first thing you

[07:07] need to do right now is get extremely

[07:10] aggressive to put at least $2,000 aside

[07:13] before you do anything else. Before you

[07:14] worry about putting money in the stock

[07:16] market, before you worry about putting

[07:17] money anywhere else, you got to save

[07:19] this $2,000 ASAP. And the way that you

[07:22] do that is you got to get very

[07:23] aggressive now on not spending money on

[07:26] anything. If you do not have $2,000 put

[07:28] aside to protect you against an

[07:29] emergency, you should not be spending

[07:31] money. You should not be going to

[07:32] restaurants. You should not be having a

[07:34] Netflix subscription. You should not be

[07:36] having any music subscriptions. You

[07:38] should not be having a massage

[07:39] membership. You should not have any of

[07:41] these payments because this is a

[07:43] financial danger zone. And trust me, I

[07:45] know this one's not fun to do, but

[07:47] without this, you're never going to be

[07:49] able to achieve any real wealth. So,

[07:52] until you have the $2,000 saved up, no

[07:54] spending money on anything unless you

[07:57] need it, absolutely need it to survive.

[08:00] You need a pair of shoes, you don't need

[08:01] the new Jordans. You need a place to

[08:02] live, you don't need that nice home. You

[08:04] need a car to get to and from work, but

[08:06] you do not need that Beamer. put aside

[08:08] the $2,000 and then the next thing that

[08:10] you got to do is you have to then pay

[08:12] down the highinterest debts and attack

[08:15] that. And the reason why now we're

[08:16] talking about paying down these

[08:18] highinterest debts before we talk about

[08:20] going out and investing your money in

[08:22] the stock market or trying to go and buy

[08:23] rental properties and create cash flow

[08:25] and build that wealth is because your

[08:28] credit card debt is costing you a lot of

[08:31] money. Credit card debt is 14 to 25%

[08:35] interest rate, sometimes more, but in

[08:37] that range, your investments are paying

[08:40] you 7 to 10% historically on average.

[08:45] Which means if you go out and you put

[08:46] your money into the stock market or into

[08:48] the real estate market and you get an

[08:50] average return of let's just say 10%,

[08:53] which is pretty good. If somebody got

[08:55] 10% a year on their stock market

[08:57] portfolio, that would be considered a

[08:58] great return. But then if you have to go

[09:02] and turn around and pay 15, 20, 25% on

[09:05] your credit card debt, you are losing

[09:08] money. You are losing wealth because now

[09:10] you're getting 10% and you're paying 20.

[09:12] So this is where right now before you go

[09:14] out and worry about investing your money

[09:16] to grow your wealth, you got to stop the

[09:18] financial bleeding, which means you got

[09:19] to pay down your credit card debt.

[09:21] Because the funny thing when it comes to

[09:22] the topic of investing, everybody talks

[09:24] about how can I get better returns? How

[09:26] can I increase the velocity of my money?

[09:28] How can I make my money faster? How can

[09:30] I double my money quicker? Well, do you

[09:31] want to know who's doing that very

[09:33] quickly at your expense? Your credit

[09:35] card company. Because guess what? Your

[09:38] credit card debt is a liability for you.

[09:40] It's an expense for you. But it's an

[09:43] asset for your bank. It's an asset for

[09:46] your credit card company because now

[09:48] your credit card company is getting that

[09:50] 20% return every time you spend a penny

[09:53] on your credit card. Now look, I love

[09:55] credit cards. I use a credit card for

[09:57] everything because I get cash back. I

[09:59] get perks. I get spending and fraud

[10:01] protection, but I also never pay a penny

[10:04] in interest. If you are paying interest

[10:06] on your credit card, you are using it

[10:08] the wrong way and you should not be

[10:11] using a credit card. Maybe at some point

[10:13] in the future you can consider using a

[10:14] credit card, but right now if you have

[10:15] credit card debt, you should not be

[10:17] using a credit card. And you got to pay

[10:19] down this credit card debt ASAP. There

[10:22] are no exceptions here. You have to pay

[10:24] down this credit card debt because it is

[10:26] skinning you alive. The third thing that

[10:28] you have to attack once you pay down

[10:30] this high interest debt is you have to

[10:31] build now a financial system that's

[10:33] going to make you wealthy before it

[10:34] makes everybody else around you rich.

[10:36] Here's the reality of how our economic

[10:38] system works. The more money you spend,

[10:40] the richer somebody else makes. When you

[10:42] go to Chipotle and you spend money,

[10:44] Chipotle gets richer. When you go to

[10:46] Lululemon and you buy some new leggings,

[10:48] they get richer. When you keep that

[10:50] money in your pocket or when you invest

[10:52] that money now, Chipotle and Lululemon

[10:53] are not getting richer, but you're

[10:55] making yourself richer. Our entire

[10:57] economic system is designed to get you

[11:00] to spend your money. And not just that,

[11:02] it's designed to get you to spend money

[11:03] you don't have. Because now, when you go

[11:05] into Lululemon and you don't have the

[11:07] money to buy those leggings, the$100 or

[11:09] $200 leggings, well, what do you do?

[11:11] Well, you could walk out, which is not

[11:13] good for Lululemon, but you could buy it

[11:15] with 0% APR, or you can put it on your

[11:17] credit card, or I'm sure they probably

[11:19] have their own credit card. I don't know

[11:20] if they do or they don't, but now you

[11:22] just bought something with the help of

[11:24] debt. Now, it's a double whammy for you,

[11:26] but it's making somebody else rich

[11:28] because now when you buy this on your

[11:29] credit card, not only are you making the

[11:31] banker richer, but now you're buying

[11:32] something that you wouldn't have bought

[11:34] in the first place, which is great for

[11:35] the economy, it's great for Lululemon,

[11:37] is great for the corporation, and it's

[11:39] great for the investors, but it's at

[11:41] your expense. And this is where right

[11:43] now, your job is to make yourself rich

[11:45] before you make everybody else rich. And

[11:47] the way that wealthy people do this is

[11:49] [snorts] they always, 100% of the time,

[11:52] is they pay themselves. They work to

[11:54] make themselves rich before making

[11:55] everybody else rich. And the way you do

[11:57] that is by investing your money before

[12:00] you spend your money. You invest and

[12:02] save first and then you spend whatever

[12:05] is left. The majority of America, and

[12:07] this is why the majority of America is

[12:08] broke, the majority of America spends

[12:10] their money first and then they'll save

[12:13] or invest whatever's left. And when you

[12:15] do that, guess what? Most of the time

[12:16] there's never any money left over

[12:18] because it's very easy to spend money

[12:20] but it's not as easy to invest or find

[12:23] that money to invest. And so this is

[12:25] where you need to build a financial

[12:26] system. It can be very simple that will

[12:28] allow you now to always have money to

[12:31] invest. And that means you can build

[12:32] something like a 751510 plan. This is a

[12:35] very easy way to start which says that

[12:37] from now on [snorts] for every dollar

[12:39] that you earn, 75 cents is the maximum

[12:42] that you can spend. 15 is the minimum

[12:46] that you're investing. We'll talk about

[12:47] where to invest in just a bit. And 10

[12:49] cents is the minimum that you're saving.

[12:52] Now, whether you're earning $20,000 a

[12:54] year, $200,000 a year, or $2 million a

[12:56] year, it does not matter. This system is

[12:59] going to scale with your income. And the

[13:01] first response that everybody has to

[13:03] this is just I'm barely getting by as it

[13:07] is. How do you expect me now to live off

[13:08] of only 75% of my income? Well, the

[13:11] response that I always have, you

[13:12] probably heard me say this, is if the

[13:14] government was to impose a brand new 25%

[13:16] tax on you tomorrow, what are you going

[13:18] to do? Complain, cry, letter to your

[13:21] senator, but then you're going to find a

[13:23] way to pay it because if you don't,

[13:24] you're going to end up in jail. And so

[13:25] now you are taxing yourself not to make

[13:28] the IRS richer, but to make yourself

[13:30] richer. So you have to build some sort

[13:32] of system that is going to now make sure

[13:35] you pay yourself first. And by pay

[13:37] yourself first, I mean making yourself

[13:39] wealthier before you make everybody else

[13:40] wealthier. Then once you create this

[13:42] type of system, I want you to create

[13:44] three different bank accounts and go to

[13:46] your bank. You can create these three

[13:48] different bank accounts. And the reason

[13:49] why is because you want to separate your

[13:51] money. You want to have a separate

[13:52] checking account for your spending

[13:53] money. You then you need to have a

[13:55] separate savings account for your

[13:56] savings money. And then you need to have

[13:58] a separate third account. This could be

[13:59] a checkings or a savings. It does not

[14:01] matter. It just depends on what you want

[14:02] to do with it. For your investment

[14:03] money, don't tell the bank this is an

[14:05] investment account because they're going

[14:07] to think of it as something completely

[14:08] different. To the banks, an investment

[14:09] account is something different. They

[14:11] have their own definition of an

[14:13] investment account. You just need a

[14:14] separate account, whether it's checkings

[14:16] or savings. That way, you can store the

[14:17] money that you want to invest. Then

[14:20] there are many banks that will do this

[14:22] completely free that will allow you to

[14:24] build automated systems that will

[14:26] automatically pull money out of one

[14:28] checking account and move it into the

[14:30] second and third account. That way now

[14:32] every time you get paid you have this

[14:34] direct deposit that now is going to pull

[14:36] money out of your checkings account from

[14:38] your paycheck. Put some of this money

[14:39] into your investment cash account and

[14:42] put some of this money into your savings

[14:43] account. That way now you don't

[14:45] accidentally spend your savings money

[14:47] and you don't accidentally use your

[14:49] investment money to finance a brand new

[14:51] pair of leggings from Lululemon. And

[14:53] this is where right now you have to

[14:55] build this. And you might think, but why

[14:56] do I need to go out and create these

[14:57] three different bank accounts? Isn't

[14:58] that overkill? Well, it's much easier to

[15:02] spend less money when you don't see that

[15:04] money. When you see that cash in your

[15:06] bank account, we as humans, especially

[15:08] as humans in America, because we live in

[15:10] a consumerism society where we are bred

[15:13] to spend money. We are bred to have what

[15:16] I call net zero thinking, which is if I

[15:17] have $1,000, I need to spend $1,000.

[15:20] This is our society here in America. It

[15:23] just is what it is. So now, how do you

[15:25] beat that? Well, you should start

[15:27] changing where the money is because now

[15:29] when you look at the money you can spend

[15:30] and you don't see anything in there, you

[15:32] can't go out and spend more money. So

[15:34] now you have your separate savings

[15:35] account, you have your separate

[15:36] investments account, and now you have

[15:37] your separate savings account. The thing

[15:39] that I want to mention about your

[15:40] savings account is you don't need to

[15:42] save your money forever because your

[15:44] savings are not there to make you

[15:45] wealthy. Your savings are just there to

[15:47] protect you against an emergency. Now,

[15:50] there are savings accounts finally

[15:52] online that will pay you some interest.

[15:54] Like as of the time of recording this

[15:56] video, there are online savings accounts

[15:58] that are real banks that are FDIC

[16:00] insured that are paying three, four,

[16:02] even close to 5% in interest a year on

[16:06] your savings. It's not a CD, so your

[16:08] money is not tied up. You can pull your

[16:10] money out whenever you want. And these

[16:12] are FDICins insured banks. So if you

[16:14] want to earn some interest on your

[16:16] savings, consider moving some of your

[16:17] money to one of these highinterest

[16:19] savings accounts. But you need to set a

[16:22] savings goal for yourself. In the

[16:23] beginning, it was just that $2,000. Now,

[16:25] as you're working to build this real

[16:27] savings, you want to have somewhere

[16:29] between 3 months and 12 months worth of

[16:31] expenses. And I know this is a big

[16:32] range. And the reason why is because

[16:34] everybody's different. Some of you are

[16:35] going to be big risktakers. You don't

[16:37] need the savings. Maybe you don't have a

[16:38] whole bunch of financial

[16:39] responsibilities. So, you don't need as

[16:41] much of a savings account. Others of you

[16:43] are going to be much lower on that risk

[16:45] tolerance. You feel like you have a lot

[16:46] of liabilities. You want to have as much

[16:48] cushion as possible that we never have

[16:50] to worry about money and stress about

[16:51] money. In that case, you want to have a

[16:53] bigger savings account. So, you figure

[16:54] out how much savings that you need. And

[16:56] then you're going to keep saving your

[16:58] money until you hit that savings goal.

[16:59] Once you hit that savings goal, you're

[17:01] going to reallocate the 10% that was

[17:03] going towards your savings now towards

[17:05] your investments because your

[17:06] investments are what is going to make

[17:07] you wealthy. Your investments are what's

[17:09] going to be working to increase how much

[17:11] income you get. They're going to be

[17:12] working to produce you cash flow.

[17:13] They're going to be working to

[17:14] appreciate in value. That way, you can

[17:16] become rich. That way, you never have to

[17:18] worry about money again. Wealth is built

[17:20] through owning assets. It's not built

[17:23] through having a big income. This is a

[17:25] big misconception here in America

[17:27] because most people in America are

[17:28] working for a bigger income and then

[17:30] they use that bigger income to drive a

[17:32] nicer car and live in a bigger home. And

[17:34] that's why most of America is broke

[17:35] because well that car and home isn't

[17:38] putting any money in your pocket. But

[17:39] the few percent of people that are

[17:41] wildly successful, it's not that they're

[17:44] rocket scientists, although some of them

[17:45] might be rocket scientists, but a lot of

[17:47] rocket scientists are broke too. And the

[17:49] reason why is because well what wealthy

[17:52] people do these are financially [snorts]

[17:54] educated people is when they make their

[17:55] money they want to buy assets first.

[17:59] They want to own the investments because

[18:00] these investments will continue to pay

[18:02] you even when you're not working.

[18:03] There's a limit to how much you can earn

[18:05] from your job. But there's no limit to

[18:07] how much you can earn from what you own.

[18:09] And this is why the wealthiest people in

[18:12] the world are focused on owning more

[18:15] assets. See, we in this consumerism

[18:18] society are obsessed with spending. And

[18:22] look, there's nothing wrong with having

[18:23] nice things. I want you to have the

[18:25] luxury things. I want you to have the

[18:26] nice things. I want you to have the nice

[18:27] car. I want you to have the big home. I

[18:29] want you to go on the nice vacations. I

[18:30] want all those things for you. That's

[18:32] why we're working hard. That way you can

[18:33] have the nice things that money can buy.

[18:36] It's no fun to just have a big bank

[18:37] account and never be able to actually

[18:38] enjoy that money. But in order for you

[18:40] to actually be able to enjoy that, I

[18:42] want you to be rich first. I want you to

[18:44] be wealthy first. And in order for you

[18:46] to be wealthy first, that means you got

[18:47] to own the assets first. Because when

[18:50] you own the assets, if you have

[18:51] investments that are paying for all of

[18:53] your expenses, well, yeah, who cares? Go

[18:55] on and buy that expensive car. Go and

[18:57] buy that expensive vacation. Go and buy

[18:59] that stupid watch. It does not matter

[19:00] because you can afford it. At that

[19:02] point, it doesn't matter what the price

[19:04] is. You have investments, your assets

[19:06] that are paying for you to do that. But

[19:08] in order for you to get these

[19:08] investments, you don't have to be born a

[19:10] multi-millionaire. You don't have to be

[19:11] born to rich parents, but you have to

[19:14] make that financial sacrifice to have

[19:15] more money to invest. You can spend less

[19:17] and you can work to earn more. Now, we

[19:19] talked about different ways that you can

[19:20] spend less, right? You got to make the

[19:21] sacrifices.

[19:23] But this is where right now you got to

[19:24] figure out how [sighs] can you have more

[19:27] money to invest? And then the next

[19:29] natural question is, well, where do I

[19:30] invest my money? Which brings me to

[19:32] point number four, which is the

[19:34] lifestyle adjustment. Now, we already

[19:35] kind of covered this, but the reality is

[19:37] most Americans are broke not because of

[19:40] their incomes, not because of their

[19:41] boss, not because of the government, not

[19:43] because of banks, but because of the

[19:45] lifestyles that we have and because of

[19:47] the decisions that we make. Now, I know

[19:48] that's hard for a lot of us to hear

[19:50] because we never want to blame

[19:51] ourselves. It's much easier to blame

[19:52] everybody else. But when you're pointing

[19:53] your fingers and blaming everybody else,

[19:55] there's three fingers pointing right

[19:57] back at you. Now, we covered this story

[19:58] in market briefs recently, but the vast

[20:03] majority of Americans are living

[20:05] paycheck to paycheck, as in more than

[20:07] 50% of Americans are living paycheck to

[20:09] paycheck. And this is where most people

[20:10] say, "Well, if I earn more money, then

[20:13] I'd be able to solve my financial

[20:15] problems." But that's not the case.

[20:16] Because what we've also seen is that the

[20:18] majority of Americans, more than 50% of

[20:21] Americans earning over six figures a

[20:24] year, more than $100,000 a year, are

[20:26] also living paycheck to paycheck. It's

[20:29] not how much money you make, it's what

[20:31] we do with the money you make. And what

[20:33] we've seen statistically is with when

[20:35] the majority of Americans get a bigger

[20:37] raise, they get a bigger salary, they

[20:38] dig themselves into a deeper financial

[20:40] hole because now you have more access to

[20:42] spend. and banks look at you and say,

[20:44] "Oh, you're making more money. How about

[20:47] a bigger line of credit on your credit

[20:48] card? How about a bigger home equity

[20:50] line of credit from your home? How about

[20:51] a bigger cash up refinance? How about

[20:53] more debt that we can go out and spend?"

[20:56] Now, what the majority of Americans do

[20:58] with that is they go out and they buy

[20:59] more liabilities, things that lose that

[21:01] money, things that make them look rich,

[21:03] right? You have all the fancy brand name

[21:05] stuff, you got the nice car, you got the

[21:06] big home, you got the nice vacations.

[21:08] And when you finance all these things,

[21:10] not only do you have to pay this money

[21:11] back, but then you got to pay interest,

[21:13] which means now your future income is

[21:14] being used to pay for yesterday's

[21:16] spending. And now you're living this rat

[21:19] race. You're working to spend. You're

[21:21] working to pay back the bills, and

[21:23] you're working to pay off the interest.

[21:24] And when you live in that cycle, you are

[21:26] never going to have the ability to get

[21:28] ahead. And this is where right now the

[21:30] most accessible thing that you can do,

[21:31] not the easiest, not the funnest, not

[21:33] the nicest thing to do, but the most

[21:34] accessible thing that you can do is give

[21:37] yourself a lifestyle adjustment. Which

[21:39] means now you got to cut back on some of

[21:41] the crap. Now, this is not fun, right?

[21:43] When you go from ordering the double

[21:44] guac at Chipotle and then you stop

[21:46] ordering extra guac, that's not fun.

[21:48] It's not as tasty of a bowl. But you got

[21:50] to find the ways now to cut back on your

[21:52] expenses. That might mean that you can

[21:55] cut back on your home. Maybe you live in

[21:57] a smaller apartment for a little while,

[21:58] for a couple years. Not fun, but you can

[22:00] save a lot of money doing that. If you

[22:02] get rid of the BMW that you financed and

[22:04] now you go to drive a Toyota Corolla

[22:06] with cash, you're going to save a lot of

[22:08] money every single month. Not just on

[22:09] the premium gas, not just on the

[22:11] insurance, not just on the maintenance,

[22:13] but also the monthly payments that you

[22:14] don't have to make anymore. And that's

[22:16] money that you can put directly towards

[22:17] your investments. When you get rid of

[22:19] some of the monthly subscriptions that

[22:20] you're not using, that are not adding

[22:22] any real value to your life, that's

[22:23] going to put some more money in your

[22:24] pocket. When you stop going out to eat

[22:26] so much, that's going to put some more

[22:28] money in your pocket. When you sacrifice

[22:29] a couple vacations, that's going to put

[22:31] thousands of dollars back into your

[22:33] pocket. Because right now, you got to

[22:34] get focused, right? We know the three

[22:35] things that are going to determine how

[22:36] wealthy you're going to become. We can't

[22:39] change the time, but you can change the

[22:40] dollars and the return. I haven't talked

[22:42] about the return yet, but right now,

[22:43] we're trying to get more dollars into

[22:45] your investment portfolio because that's

[22:46] going to make you wealthier. How do you

[22:48] get more dollars in there? Well, you can

[22:49] spend less or you can earn more. And the

[22:52] most accessible thing that you can do is

[22:53] make the lifestyle adjustment. That way

[22:55] you can spend less. Yeah. Erk to earn

[22:57] more too. That way you have more money

[22:59] going into your investments. But the

[23:01] most accessible thing that you can do is

[23:02] you got to learn how to spend less

[23:03] money. That way you have more money just

[23:06] throwing into your investments cuz

[23:07] that's what's going to make you wealthy.

[23:09] And again, this is not fun. Your friends

[23:11] are going to look at you like you lost

[23:12] your mind when you pull up in the Toyota

[23:14] Corolla after you were driving that BMW

[23:16] 4 series. But this is your time to

[23:20] shine. And then a few years later, once

[23:23] you were to build that wealth, now you

[23:24] can go out and buy the BMW 6 series and

[23:27] maybe you can buy it with cash. That way

[23:29] you don't even have to worry about the

[23:30] price. And now you don't got to worry

[23:32] about the payments. And then when you go

[23:33] to pump gas, you're not going to be

[23:34] stressing about gas prices, which is

[23:36] probably one of the most ironic things

[23:38] in the world. You see people go into

[23:40] huge debt to buy these fancy premium gas

[23:43] cars and then you start complaining

[23:45] about the price of gas. If you're

[23:47] complaining about the price of gas, the

[23:48] problem isn't the price of gas. The

[23:50] problem is the car that you're driving.

[23:51] And so, right now, you got to figure out

[23:54] how you can adjust that lifestyle that

[23:57] we have less money going out. The fifth

[23:59] step that you have to then work on is

[24:01] where do you actually invest your money?

[24:04] How do you invest your money? And

[24:06] there's a couple different categories of

[24:07] things that you want to pay attention

[24:08] to. Number one is are you going to be

[24:12] investing your money into cash flow

[24:14] producing assets? Number two, are you

[24:16] investing your money passively or

[24:18] actively? If you're an investor or want

[24:20] to be an investor and you want to see my

[24:22] investing strategy, I'll put together a

[24:24] brand new and free investing master

[24:26] class where I walk you through how you

[24:28] can start investing and find hidden

[24:30] investment opportunities before they hit

[24:31] the headlines. I'll even show you the

[24:33] exact framework that my firm and I use

[24:35] to research investment opportunities and

[24:37] find investment opportunities. It's a

[24:39] completely free master class. And when

[24:41] you sign up for the master class as a

[24:42] bonus, you're also going to get access

[24:44] to market briefs, which is my newsletter

[24:46] for investors. It's read by hundreds of

[24:48] thousands of investors every single

[24:49] morning to keep you up to date with

[24:51] what's happening in the economy. So, if

[24:53] you want to get the investing master

[24:54] class and market briefs all for free,

[24:56] all you have to do is sign up and I have

[24:58] that link for you down in the

[24:59] description. Some investments, like your

[25:01] rental properties, like stocks [snorts]

[25:03] that pay out dividends, pay out cash

[25:05] flow. Other investments don't. Like you

[25:08] can go out and invest in real estate and

[25:10] hope to flip it in six months to three

[25:12] years or five years or whatever and make

[25:14] a huge profit. Same in the stock market.

[25:16] You can go out and buy stocks with the

[25:18] goal of trying to sell the stock for a

[25:20] huge profit in the future. Or you can

[25:22] buy stocks that are going to pay you for

[25:23] doing nothing except owning the stock.

[25:26] This is called a dividend. A dividend is

[25:28] when a company is going to pay you every

[25:29] three months, generally every quarter,

[25:31] and they're going to give you a check or

[25:33] deposit this money directly into your

[25:35] stock brokerage account for doing

[25:36] nothing except owning the stock. Now,

[25:39] what you have to understand about cash

[25:41] flow investing is you're not going to

[25:42] get rich by investing your money into

[25:44] cash flow, especially in the short term.

[25:47] Cash flow investing is a long-term game

[25:49] where you're going to have to constantly

[25:51] keep buying more of these cash flow

[25:53] producing assets and do this for a long

[25:55] enough period of time. That way now you

[25:57] can build a significant stream of cash

[25:59] flow. But it's not going to happen

[26:01] today. It's not going to happen next

[26:02] year. It's not going to happen the year

[26:03] after that. But you're going to have to

[26:05] stay consistent if that's what you want.

[26:07] Cash flow investing to build real wealth

[26:10] takes time and it takes commitment and

[26:13] it takes you consistently putting more

[26:15] dollars into it. A lot of people think

[26:17] that, oh, if I buy some cash flow, I'm

[26:18] going to be rich. You don't get rich by

[26:20] buying cash flow. You have to make the

[26:22] money first and then you use this money

[26:23] to generate cash flow. You got to get

[26:25] rich and then use this money to buy the

[26:27] cash flow. When you put enough riches

[26:29] into these cash producing assets, you're

[26:31] going to [snorts] get more cash flow

[26:32] back. The general rule of thumb, what

[26:34] you're going to see from real estate to

[26:36] stocks is somewhere between two to 7%

[26:39] cash flow. That is kind of your your

[26:42] general range. Sometimes a little bit

[26:43] less, potentially, sometimes more, but

[26:45] generally $2 to $7 worth of cash flow,

[26:48] which means for every $100 you invest,

[26:50] you're going to get $2 to $7 a year in

[26:53] cash flow. Again, it's not going to seem

[26:55] like a lot of money, but now when you

[26:56] change that up to investing $100 a week,

[27:00] every week over 10 years, now you can

[27:03] start to see where the cash flow starts

[27:05] to grow because then when you get that

[27:06] cash flow, you can also reinvest that

[27:09] cash flow to earn more cash flow. So now

[27:11] you're slapping $100 every week to buy

[27:13] more cash flow. And then when you get

[27:15] that cash flow check, instead of taking

[27:16] that and using it to go out and buy

[27:18] something nice, you take that money and

[27:19] you use it to buy more cash flow. That

[27:21] way every three months you're buying

[27:23] more cash flow because you're just

[27:24] throwing more money into this machine

[27:26] that's printing you cash. That is how

[27:28] you build wealth by investing for cash

[27:30] flow. The alternative is well now you're

[27:32] not investing for cash flow. You are

[27:34] buying something for say $100 and you

[27:36] want this to go up to $200. Again,

[27:39] that's okay. It's just an alternative

[27:41] way to get paid. And this is where now

[27:43] you have to be able to analyze your

[27:44] investments. You have to know how to

[27:45] invest your money. And you have to know

[27:46] the different places where you can

[27:48] invest. Again, the two most well-known

[27:50] places where you can invest is in the

[27:52] stock market and into real estate. Now,

[27:54] if you want to get started in real

[27:55] estate by owning physical properties,

[27:57] it's going to take more money. It's

[27:58] going to take more time. It's going to

[27:59] take more resources. It's going to take

[28:00] more risk. There are alternative ways

[28:02] for you to invest in real estate by

[28:04] investing in funds online. I have some

[28:06] of these resources in the description if

[28:07] you want to see some of the companies

[28:08] that I work with. They are affiliate

[28:10] companies of mine. But it is a way for

[28:13] you to get exposure to real estate. Real

[28:16] estate generally is going to take more

[28:17] work, more time, more risk, and more

[28:19] money. With the stock market, you don't

[28:21] need as much time, risk, or money

[28:23] because you can just throw your money

[28:24] into the market. And this is where you

[28:25] have to decide now if you want to be an

[28:28] active investor versus a passive

[28:30] investor or a hybrid of both. And

[28:35] if you ask me, the vast majority of

[28:37] America, 90 to 95%, maybe even 98% of

[28:40] Americans should be passive investors.

[28:42] But everybody gets attracted to the idea

[28:44] of being an active investor. And what

[28:45] that means is when you try to put your

[28:47] money in the stock market, most people

[28:49] think you have to find the next Amazon

[28:51] or the next Google or maybe the next

[28:53] Apple if you want to get rich. But

[28:55] that's not how the vast majority of

[28:57] people will get rich because when you

[28:59] play that game of trying to find the

[29:00] next hot stock, most of the time, the

[29:02] vast majority of the time, you're going

[29:04] to lose. And most people don't have the

[29:05] psychology to know how to manage their

[29:07] investments, when to buy, when to sell,

[29:08] and when to hold. And most people don't

[29:10] know how to analyze their investments.

[29:13] Maybe you find some cool companies that

[29:14] you want to invest in, but how do you

[29:15] analyze the financials? How do you know

[29:16] if the cash flow is growing? How do you

[29:18] know if the profits are growing? How do

[29:20] you know if they're using their cash the

[29:21] right way? How do you know if the

[29:23] executives who are running the company

[29:25] are doing good things? How do you know

[29:27] how strong the mo is, meaning how hard

[29:29] it is for another competitor to come in

[29:31] and take their spot? How do you know if

[29:32] they're using the cash flow the right

[29:34] way? How do you know if they have good

[29:35] assets and liabilities on their balance

[29:37] sheets? If that sounds interesting to

[29:38] you, which unless you're a money nerd,

[29:40] that's not going to sound very

[29:41] interesting to you, you should be

[29:45] looking for something that's going to

[29:46] appeal to the interest and the time that

[29:48] you have. Being an active investor is

[29:51] difficult. This is what Warren Buffett

[29:52] spends his days doing. He's an active

[29:54] investor. He loves researching

[29:56] companies. He loves studying their

[29:58] financials. He loves studying the

[29:59] products. He loves studying the

[30:01] executives at their company. He loves

[30:02] studying the innovation. He loves

[30:04] studying the branding of the company.

[30:05] That's what he's doing. When you're

[30:07] investing in the stock market, you're

[30:08] literally buying companies. When you buy

[30:10] one share of Amazon, you become one of

[30:12] the owners of Amazon. And if you don't

[30:14] want to treat it like that, then you're

[30:15] essentially gambling. Sure, you can make

[30:17] some money. You might find a cool

[30:18] company that you like before it pops

[30:19] off, but you might not. And you might

[30:22] not have any way of knowing if your

[30:24] company is a good investment or not. If

[30:26] that's something you want to do, you

[30:27] want to invest in individual companies,

[30:29] fine. But just understand the risk. And

[30:32] the more research you do, the more you

[30:33] learn, the more time you spend, and the

[30:35] more money you spend learning how to do

[30:36] it, the better you're going to do. But

[30:38] again, this is long-term investing. I'm

[30:39] not talking about trading. Talking about

[30:41] long-term investing. If you want to

[30:42] invest in individual companies,

[30:43] understand that that is a real skill if

[30:47] you want to succeed. The alternative is

[30:50] being a passive investor. A passive

[30:52] investor is now instead of you trying to

[30:54] find the next hot Amazon or the next hot

[30:56] Apple. Now what you're doing is you're

[30:59] just investing your money into the stock

[31:01] market. You're investing your money into

[31:02] America. And if America grows and our

[31:05] stock market grows, you make money. And

[31:08] now you don't really have to try to find

[31:10] the best time to buy. You don't have to

[31:12] find the best price. All you're going to

[31:13] do is set up a system where now every

[31:15] time you get paid, you're just going to

[31:16] throw money into the market. And this

[31:18] can be completely passive. You don't

[31:20] have to spend any time doing this

[31:21] besides finding the right funds to

[31:23] invest in in the first place. Then you

[31:25] just automate it, set it and forget it.

[31:27] And so it's much less time, much less

[31:29] risk because now if you invest in there

[31:31] are funds for example that will give you

[31:32] exposure to the entire stock market. For

[31:35] example, there is an ETF, an

[31:37] exchangeraded [snorts]

[31:38] fund called VTI. It trades just like any

[31:42] other stock on the stock market. But

[31:44] when you buy one share of VTI, you're in

[31:47] essence buying the total stock market,

[31:49] which means now you're just getting

[31:51] exposure to America and the stock

[31:53] market. Now you have hundreds or

[31:55] thousands of companies that you're

[31:56] investing in. And so if one company goes

[31:59] bankrupt, it doesn't bankrupt you. It

[32:01] just gets kicked out and now another

[32:03] company might come in. It's gets

[32:04] balanced out by the losers. If one

[32:06] company goes really big, yeah, that's

[32:08] going to benefit you, but it's also

[32:09] going to be balanced out by some of the

[32:10] losers. So these funds like ETFs, you

[32:13] can also look at index funds. Some

[32:15] mutual funds might alo also work. These

[32:18] funds are giving you exposure to baskets

[32:20] or groups of stocks. So that way you

[32:22] don't have to find the perfect company.

[32:24] But the key to win in this type of

[32:27] passive investing game is you got to

[32:28] just keep throwing money into the ETFs

[32:31] every week, every two weeks, every

[32:32] month. I am a passive investor and an

[32:35] active investor. I cannot tell you what

[32:37] to do. Do not blindly follow anything

[32:38] that I do. And I don't recommend what I

[32:39] do to anybody, but what I do is I have a

[32:42] passive investing strategy and an active

[32:44] investing strategy because I'm a weirdo

[32:46] and I like researching companies. Those

[32:48] numbers are very interesting to me. But

[32:50] I have a passive and an active investing

[32:52] strategy. In my passive investing

[32:54] strategy, every Wednesday, I don't have

[32:56] a secret sauce as to why Wednesday, just

[32:58] for me, I picked Wednesdays because it's

[32:59] in the middle of the week. Every

[33:01] Wednesday, cash is leaving my bank

[33:03] account and it's automatically being

[33:05] invested into my portfolio of ETFs. I

[33:07] have ETFs that give me exposure to value

[33:10] companies, things like the S&P 500. I

[33:13] have ETFs that are giving me exposure to

[33:15] dividends. This is actually the biggest

[33:16] piece of my entire passive investing

[33:20] portfolio. I like dividends because I

[33:22] like cash flow. Cash flow is the bulk of

[33:24] my investment portfolio because my

[33:26] rental properties are there for cash

[33:27] flow and the majority of my stock market

[33:29] passive portfolio is there for cash

[33:31] flow. So now I have the the value, the

[33:35] S&P 500s. I have the dividend paying

[33:38] companies, ETFs, and then I have some

[33:40] investing into innovation. This is a

[33:42] little bit more of the speculative side.

[33:43] These are more of like the growth

[33:45] potential type of companies. And then I

[33:47] also have ETFs that give me exposure to

[33:49] international companies, emerging

[33:51] markets, because that's kind of like a

[33:52] hedge because if things go down in the

[33:54] United States, well, some countries that

[33:56] don't rely on the United States, that

[33:57] don't rely on the dollar, might not be

[33:59] hurt as bad. And so, it creates a little

[34:01] bit of a hedge. Now again, every

[34:02] Wednesday, cash leaves my checking

[34:04] account and it's automatically invested

[34:06] into my portfolio of ETFs. I don't touch

[34:08] it. I don't think about it. I don't

[34:09] worry about it. It just happens every

[34:10] Wednesday whether the market's up,

[34:12] whether the market's down. And that's

[34:14] the key to win. Not only do you need the

[34:16] time now where you're investing your

[34:18] money into these types of ETFs for a

[34:19] long time, but you're doing this in a

[34:21] way where it's consistent, passive, and

[34:23] automatic. Because if you choose when to

[34:25] do it, well, you might miss a week. And

[34:28] when you're just waiting for the best

[34:29] opportunities, you're not going to keep

[34:31] investing your money. The way that you

[34:32] do this is whether the market's up or

[34:34] down, you're going to keep investing

[34:35] your money no matter what. The only

[34:38] change that you're ever going to make is

[34:39] potentially

[34:41] when you see markets drop, you could

[34:43] potentially buy more. But besides that,

[34:45] you don't change the system. That's how

[34:48] you win in this passive investing game.

[34:50] And you just keep throwing more money

[34:51] into it. Now, this is where you got to

[34:53] make the decision of number one, where

[34:55] do you want to invest? What types of

[34:57] assets? Is it stocks? Is it real estate?

[35:00] Is it startups? Is it something else?

[35:01] You got to figure out the assets that it

[35:03] is that you want to invest in. Second,

[35:05] do you prefer cash flow, non-cash flow?

[35:08] Third, are you going to be passive or an

[35:10] active investor? And now you just kind

[35:12] of work down the list and you start

[35:13] taking that money that you're putting

[35:14] aside towards investments and you put it

[35:16] to work. Now, if you remember what I was

[35:17] saying just a little bit ago that there

[35:18] are three factors that will determine

[35:20] how wealthy you become. Number one is

[35:22] the dollars. Number two is the return.

[35:23] Number three is the time. We cannot

[35:25] control the time, but you can control

[35:26] the dollars and the return. When you

[35:28] spend less or you earn more, that's

[35:30] influencing how many dollars you're

[35:32] investing. The next thing that you can

[35:33] do is influence the return that you're

[35:35] getting. And that's where now your

[35:36] investments are going to determine the

[35:38] types of returns that you're getting. If

[35:40] you want to get better returns,

[35:42] generally that means you might have to

[35:44] take on a little bit more risk. For

[35:45] example, you have the potential to get

[35:47] better returns when you actively invest

[35:49] your money versus when you passively

[35:51] invest your money. But the higher risk

[35:53] also comes with the higher potential to

[35:55] lose more money. And so now, how do you

[35:57] get better returns? You get more

[35:59] financially educated because the more

[36:00] you learn, the more opportunities that

[36:02] you're going to see. And in addition to

[36:04] that, what else creates opportunities?

[36:07] Well, finding distressed assets. If you

[36:09] find a rental property that's beat up,

[36:11] that's in an area that's coming up, but

[36:13] it's just so bad that nobody wants to

[36:15] buy it, that could give you the

[36:16] opportunity to buy a good property

[36:18] that's beat up, that you can fix up at a

[36:20] huge discounted price. It's the same

[36:22] thing in the stock market. If you find a

[36:23] beatdown stock that everybody's selling

[36:26] that's on the verge of a turnaround,

[36:28] that can create opportunity for you.

[36:29] Again, higher risk because this company

[36:31] could then go into bankruptcy. But if

[36:33] you can buy it cheap, you can make a lot

[36:35] more money. And this is where now that

[36:37] financial education comes in. How can

[36:39] you find these types of opportunities?

[36:41] You can learn, you can start

[36:42] researching, or you can see more broad

[36:45] market opportunities. When you see a

[36:46] market crash, when you see a recession

[36:48] happen, asset prices fall. Why do asset

[36:50] prices fall? Because people start

[36:52] selling. People start panicking. People

[36:53] need money. So they cash out of their

[36:54] investments. And when people are

[36:55] selling, that creates an opportunity for

[36:57] people who are prepared to come in and

[36:59] buy. So if you want to see higher

[37:01] returns, you got to get more financially

[37:03] educated and get more involved with

[37:04] their investments because that's going

[37:06] to allow you to get higher returns. And

[37:08] the higher the returns that you get on

[37:09] the money that you invest, the wealthier

[37:12] you will become. And now when time is a

[37:14] more limited factor, you're going to

[37:16] have to get more focused on that

[37:17] financial education. Not just so you can

[37:19] invest more, but so you can get the

[37:20] better returns on your money. This

[37:22] brings me to then the sixth thing that

[37:24] you have to work on, which is your

[37:25] income. What happens now to 99% of

[37:27] people in this situation is you are now

[37:30] getting into this financial education

[37:31] game. You're working to put more money

[37:33] towards your investments. You're working

[37:34] to invest your money to build wealth.

[37:36] And now you realize, wow, this is kind

[37:38] of fun. I'm seeing the [snorts]

[37:39] opportunity for success. I need more

[37:41] money to invest my money. This is now it

[37:44] pays to earn more money because now when

[37:46] you earn more money, you're earning more

[37:47] money, not to drive a faster car and

[37:49] have a bigger home and go on a nicer

[37:50] vacation, you're earning more money so

[37:52] you can have more investments that will

[37:54] pay for your nicer car, bigger home, and

[37:57] fancy vacations. And this is where now

[37:59] earning more money is so crucial because

[38:02] now your time is more limited. You need

[38:05] to be investing more dollars that way

[38:07] you can have more wealth. But in order

[38:09] for you to invest more dollars, there's

[38:10] only two options. Number one is you can

[38:12] spend less, which is what we've been

[38:13] talking about up until now. The second

[38:15] thing that you can do which can allow

[38:17] you to make way more money to invest to

[38:19] have more money to invest is you got to

[38:21] earn more money. Now, how do you earn

[38:23] more money? Well, there's an unlimited

[38:25] number of options here. And the first

[38:26] thing that I want to say is look, it's

[38:27] never too late to make a change. This is

[38:30] what's going to be probably the most

[38:32] difficult factor in your 40s. And what's

[38:34] interesting is it's not just difficult

[38:36] in your 40s. It becomes difficult when

[38:38] you're 25. People who are 25 say, "Oh

[38:40] man, I'm committed to working in

[38:42] medicine. I'm committed to being an

[38:44] engineer. I'm committed to being an

[38:46] accountant. I can't change now." You're

[38:47] 25 years old. What are you talking

[38:49] about? And then you hit your 30s and

[38:50] you're like, "Dang it, you know, I

[38:52] should have made that change when I was

[38:54] 25. I don't really want to be an

[38:56] engineer. I really don't want to be a

[38:57] doctor. I really don't want to be a

[38:59] teacher. I really don't want to be an

[39:00] accountant. I really don't want to be a

[39:02] technician."

[39:03] Well, then what happens is you just

[39:05] stick with it because like you feel like

[39:07] you've been in this career, in this

[39:08] industry for so long, you can't make a

[39:10] change because now you're older. Nobody

[39:12] wants to hire an older person. You don't

[39:13] have any other experience. And do you

[39:15] really want to start over? And then come

[39:16] your 40s and then you say, "Oh, you

[39:19] know, dude, I was really young in my

[39:20] 30s. I was stupid for not making a

[39:23] change when I should have. But now I'm

[39:24] in my 40s. I've been in this career for

[39:26] so long. I have so many networks now.

[39:29] I've built myself and this experience

[39:31] and I have this this resume that allows

[39:33] me to have the job that I have. It's not

[39:35] the funnest thing. I don't really care

[39:37] about what I do. I'm not making the best

[39:38] money, but do I really want to like I'm

[39:40] 40 years old. I'm 45 years old. Do I

[39:43] really want to make a change now? That

[39:45] what's going to happen when you're in

[39:46] your 50s. You're going to say the exact

[39:48] same thing. When you're in your 60s,

[39:49] you're going to say, "Dude, I wish I

[39:50] would have made that change in my 40s or

[39:52] my 50s." Time is going to keep going on.

[39:56] Period. Like we're not going to stop the

[39:58] earth from spinning. We're not going to

[39:59] stop the days or the nights from coming.

[40:02] That's going to happen regardless. Time

[40:04] is going to go, but what you do in that

[40:06] time is something that you can control.

[40:07] And so if you're not happy what you do,

[40:09] make a change. What's the worst that can

[40:11] happen? And if you don't want to just

[40:12] leave your job, that's okay. Start doing

[40:14] something in the evenings. Start doing

[40:16] something in the weekends. That way you

[40:18] can start learning. If you're an

[40:19] engineer and you want to go into

[40:20] medicine, or if you're an engineer and

[40:22] you want to be an entrepreneur, or if

[40:23] you're a doctor and you want to go and

[40:24] start selling cakes on the internet,

[40:26] that's okay. There's nothing wrong with

[40:28] that. Start figuring out if you're not

[40:30] happy with what you're doing. It's not

[40:32] too late. Even if you're in your 40s,

[40:34] even if you're in your 50s, even if

[40:35] you're in your 60s, it is never too

[40:37] late. And you might surprise yourself at

[40:39] how many new financial opportunities

[40:41] you're going to find when you start

[40:42] doing something that you actually enjoy.

[40:44] Because when you start doing things that

[40:46] you actually enjoy, you don't feel the

[40:48] dread of working. And when you don't

[40:50] feel the dread of working, you end up

[40:51] working more. And when you end up

[40:53] working more, you tend to be better at

[40:54] what you do. When when you get better at

[40:55] what you do, you have the ability to

[40:57] earn more money. And when you have the

[40:58] ability to earn more money, well then,

[40:59] you know, you can live a better life

[41:01] financially. And it can happen very

[41:03] quickly. People talk about how much I

[41:05] work. I work a lot of hours. I work

[41:06] seven days a week. I like working. I

[41:08] work when I'm on my vacations.

[41:10] Vacations.

[41:12] I do it because I don't feel a dread

[41:14] when I work. Actually, I get stress

[41:15] relief when I work. I like what I do.

[41:18] And because of how much I can work, it's

[41:22] harder for people to compete against me.

[41:24] And it allows me to also earn more

[41:26] money. And the funny thing is, I don't

[41:27] feel stressed out because how much I'm

[41:29] working because I like what I do. And

[41:31] this is where now you can create new

[41:33] opportunities for yourself. Whether it

[41:34] is a career change, whether it's getting

[41:36] a certificate, whether it's working

[41:38] harder at your job, whether it's getting

[41:39] a second job, whether it's getting some

[41:41] sort of new qualification that we can

[41:43] earn more money, there's unlimited

[41:45] possibilities here. It is not too late

[41:49] to make a change. And if you don't

[41:50] believe me, I don't know, I can shake

[41:53] the screen to get it through your head,

[41:54] but you got to be the one to believe

[41:55] that for yourself. That is not too late.

[41:58] If you don't want to do that, you can

[41:59] also work to create your own income. You

[42:01] can try to start a side hustle. You can

[42:02] try to start a business. You don't have

[42:04] to quit your job and change everything

[42:05] in your life and hope that you start

[42:06] making millions of dollars tomorrow.

[42:07] That's not how it works. But you can

[42:09] start on the evenings. You can start on

[42:10] the weekends. You can start on the

[42:12] mornings. You can work on a lunch break.

[42:13] You can find time to get committed to

[42:16] start learning to be better to thou

[42:18] creating the new income and doing

[42:20] something different that will allow you

[42:21] to live the life that you want. Because

[42:23] remember, you got to own the assets to

[42:25] become wealthy. How can you own more

[42:26] assets? You can spend less or you can

[42:29] earn more. We talked about how to spend

[42:30] less. This is where now how can you earn

[42:32] more money? not so you can drive a

[42:34] faster car and have a bigger home.

[42:35] Right? You got this now. So you can

[42:37] invest more aggressively. And this then

[42:39] leaves me with number seven, which is

[42:40] talking about all the other debts that

[42:42] you have. You can talk about your car

[42:43] payment. You can talk about your

[42:44] mortgage payment. You can talk about all

[42:46] the other debts that you have, the lower

[42:47] interest rate debts. Because in the

[42:49] beginning, we talked about your high

[42:50] interest rate debts. Now, when we talk

[42:52] about these other debts out there, the

[42:54] real key now is going to be dependent

[42:57] about what type of life that you want to

[42:58] live. Because if your goal is just to be

[43:01] financially free, you know, I don't want

[43:03] to have to worry about money. I want to

[43:04] go to my backyard, never have to worry

[43:05] about payments again. I just want to be

[43:07] able to breathe without having anybody

[43:10] hovering over me and I don't really care

[43:12] about having the nice stuff. I don't

[43:13] really care about the exotic things. I

[43:15] just want to live free. If that's you,

[43:17] then it makes more sense maybe for you

[43:19] to pay down the debt. I said maybe for a

[43:21] reason. I'll get to why in just a

[43:23] second. If you say, you know what,

[43:24] Jasperit,

[43:26] I want to change my life completely. I'm

[43:29] tired of living like crap. I want to

[43:31] have the nice things. I want to drive in

[43:33] Mercedes, BMWs, Rolls-Royces. I want to

[43:37] fly first class. Maybe I want to even

[43:38] fly private. I want to have the nice

[43:41] exotic things. I'm so tired of living

[43:43] like this. Okay, that's fine. But the

[43:46] way you're going to get there is by

[43:47] taking on a little bit more risk than

[43:48] just paying down a 4% interest rate

[43:50] debt. And so now you got to figure out

[43:52] what type of lifestyle do you want to

[43:53] live and what is going to make the most

[43:55] sense financially. And the reason why is

[43:57] because now you got to take a look at

[43:59] your debts. Lay out what interest rates

[44:02] are you getting? If you got a mortgage

[44:04] back in 2020 or 2021 and your mortgage

[44:06] is 2.8% a year.

[44:09] Now you're debating what should I do?

[44:11] Should I pay down my mortgage faster or

[44:14] should I do something else with my

[44:15] money? Well, if one of your options is,

[44:19] I can save my money into a highinterest

[44:21] savings account that pays 4 and a.5%

[44:25] and my mortgage is 2.8%.

[44:28] If this guaranteed savings return

[44:31] interest is paying a higher interest

[44:33] rate than my mortgage, well, then you

[44:35] can just put your money into a high

[44:36] interest savings account and then use

[44:38] the interest from the savings to help

[44:39] pay down your mortgage, right? because

[44:41] at that point financially you have very

[44:43] low risk to get this return from your

[44:45] savings account and so now you can get

[44:48] this return and it's better for you to

[44:49] get that return on your savings because

[44:50] there's a higher rate of return than

[44:52] your debt. See when you put your money

[44:54] into the stock market or into the real

[44:55] estate market now it's different. Now

[44:58] the goal is to get 7 to 10% a year but

[45:00] you might also get minus 5%. which is

[45:02] where now if you have that low interest

[45:04] rate debt and you just want to be

[45:05] financially free then sure it makes

[45:07] sense to maybe not invest the money into

[45:09] the stock market or the real estate

[45:10] market because there's a chance you

[45:12] might not make any money in which case

[45:14] paying down the debt can give you a

[45:16] guaranteed return and can give you that

[45:19] that lifestyle faster. But when you have

[45:21] the high the high interest savings

[45:22] accounts that are paying you 3, four, 5%

[45:25] and if that's more than what your debt

[45:27] interest rate is, well now you might be

[45:30] better off by not paying down that debt

[45:32] faster because you can get the interest

[45:34] from your savings and that might help

[45:37] you actually earn more and use those

[45:39] profits to pay down that debt even

[45:41] faster. And so this is where you just

[45:43] got to figure out what type of lifestyle

[45:44] that you want to live. Again, if you

[45:46] want to live big, you want to have the

[45:47] nice things, you want to you got to be

[45:48] willing to take on more risk. And taking

[45:50] on more risk means maybe instead of

[45:52] paying down the debt right now, you got

[45:53] to be investing into things like

[45:54] yourself that's going to help you earn

[45:56] more money. One of the best investments

[45:57] that you can make is in yourself. That

[45:59] means start by spending your time to

[46:00] learn. Watch YouTube videos, listen to

[46:02] podcasts, listen to articles, read books

[46:05] about ways to earn more money, ways to

[46:07] build a business, ways to grow a

[46:08] business, ways to scale a business, ways

[46:10] to be creative, ways to be innovative.

[46:13] Then as you learn, you start doing. You

[46:14] start investing into your business idea.

[46:16] And I can pretty much guarantee that the

[46:18] first idea is going to be a flop. But

[46:19] you got to get started. You got to have

[46:20] the first to have the second to have the

[46:22] third. And then as you do, you're going

[46:24] to learn more. And as you start to grow,

[46:26] that's when you can start investing into

[46:28] more education. Hire a coach, hire a

[46:30] consultant, somebody who's 5 years ahead

[46:32] of you, 10 years ahead of you, because

[46:33] they can teach you a lot that we don't

[46:35] have to go through the five or 10 years

[46:36] of pain and struggle that they went to.

[46:37] Yeah, they're expensive. I get it.

[46:39] online coaches, uh, business coaches,

[46:41] investment coaches are expensive. I've

[46:43] hired a lot of them. I've paid a ton of

[46:45] money in education, but if they can help

[46:47] you reduce how much time you have to

[46:48] spend learning to do it yourself, it

[46:51] might be a very good investment for you.

[46:52] Some of them might be crap. Some of them

[46:54] might be really good. And then you keep

[46:56] investing and building in yourself. And

[46:58] this is where now you are building that

[47:00] trajectory to build that wealth because

[47:02] now you will own the assets. you have

[47:04] the right income and you're spending

[47:05] money in a smart way that's allowing you

[47:08] to scale how many investments you have

[47:10] because that's how you're going to

[47:11] become wealthy. Building wealth is all

[47:13] about the velocity of your money. How

[47:15] fast can you grow your money from $1,000

[47:17] to $10,000? And your job now is to

[47:20] figure out how you can accelerate the

[47:22] velocity of your money. And in order for

[47:24] you to change the trajectory to go from

[47:26] slow and steady growth to fast and

[47:29] booming growth is to focus on these four

[47:31] things. Number one, you got to focus on

[47:33] your mindset. Number two, your

[47:35] commitment. Number three, your

[47:36] discipline. And number four, your risk.

[47:39] Let me start by talking about your

[47:40] mindset. Because the reality is, look,

[47:42] we live in a day and age where people's

[47:44] mindsets are really influenced about

[47:46] what's happening outside, what's

[47:48] happening in the media, what's happening

[47:49] in the traditional media, and what

[47:50] people feel the consensus of on social

[47:53] media. And people generally, I'm not

[47:56] talking about everybody, but you kind of

[47:57] have this like general consensus of,

[48:00] well, I'm not rich, so I hate people who

[48:03] are rich. And I can pretty much

[48:05] guarantee that when you carry that

[48:06] mindset, it's going to be impossible for

[48:08] you to ever become rich. Now, how do I

[48:10] know this? We remember that whole

[48:12] submarine incident recently, which was

[48:14] so devastating, so heartbreaking. It

[48:17] doesn't matter if someone's rich or

[48:18] poor, something's going on. There was a

[48:20] lot of things happening in the world,

[48:21] but when somebody loses their life who's

[48:23] innocent, that's sad. And when you read

[48:25] through the comments, most of them were

[48:27] solely focused on the incomes or wealth

[48:30] of people that were inside of the

[48:32] submarine. And what did they say? Oh,

[48:33] these are rich people problems. Why are

[48:35] we trying to help rich people? Oh,

[48:36] that's what happens when you're rich.

[48:38] And I can guarantee you that when you

[48:40] have that mindset towards rich people

[48:43] that, oh, they're bad because they're

[48:45] rich, you are never going to have the

[48:46] opportunity to be rich because naturally

[48:48] we want to be good people. And if being

[48:50] rich is being bad, why would you want to

[48:52] go out of your way to become bad? And

[48:54] this is where you got to understand,

[48:55] look, money does not make you a good

[48:57] person. Money doesn't make you a bad

[48:58] person. Money is just a tool. It

[49:01] amplifies who you are. When you give a

[49:02] good person more money, they have a tool

[49:04] to do more good. When you give a bad

[49:06] person more money, they have a tool to

[49:07] do more bad. And so, if you want to be

[49:10] wealthy, all you need is more money. And

[49:13] more money is not going to make you a

[49:14] bad person. It's not going to make you a

[49:15] good person. It's going to amplify the

[49:16] type of person that you are. And instead

[49:18] of hating the people who have money, you

[49:20] got to start asking the question of how

[49:22] did they get the money in the first

[49:23] place. And that simple switch in your

[49:26] mindset is going to completely change

[49:27] the trajectory of your life. And you

[49:29] might be thinking, oh, just that's just

[49:30] a bunch of woo wah stuff. You can't just

[49:33] change your life by thinking

[49:34] differently. Yes, you can. And I'm not

[49:37] talking about this abundance of I'm just

[49:39] going to pray on money and money is

[49:40] going to come and fall on my laps.

[49:41] That's not what I'm talking about. I'm

[49:43] talking about changing the way that you

[49:44] think. There are some people out there

[49:46] who think the world is against them. And

[49:48] when you think the world is against you,

[49:50] what's going to happen? Well, you're

[49:52] going to constantly be paranoid and not

[49:54] want to build trust with people, not

[49:56] want to network with people, not want to

[49:59] build businesses and relationships with

[50:01] people because you're going to think the

[50:02] whole world's going to be against you.

[50:03] And as soon as something goes wrong, as

[50:05] soon as something happens in that

[50:07] business, I knew it. I knew the

[50:09] government was going to be after me. I

[50:10] knew customers were going to hate this

[50:12] product. I knew that the internet was

[50:14] going to not like this. I knew that

[50:16] people were going to try to shut me

[50:17] down. Well, you could change that same

[50:20] person. If you put them in a different

[50:22] mindset, it could be completely

[50:24] different because guess what? Every idea

[50:28] is going to have problems. People are

[50:30] going to hate on every idea in the

[50:32] world. You know, there's a meme on the

[50:33] internet that says, "If you don't want

[50:35] to upset people, just sell ice cream or

[50:37] something along those lines." Well,

[50:38] guess what? Even if you sell ice cream,

[50:40] someone's going to be mad. People are

[50:42] going to have issues with everything

[50:44] that you do. They're going to have

[50:45] issues when you don't do things. They're

[50:46] going to have issues when you do do

[50:47] things. That's a part of the world.

[50:49] There's going to be issues of

[50:50] regulations. There's going to be issues

[50:52] of a lot of things. And so now, if you

[50:56] expect that to happen and that's going

[50:58] to be that overwhelming force of why you

[50:59] can't become successful, you can

[51:00] guarantee you're never going to become

[51:02] successful. And this is where that

[51:03] mindset of now understanding

[51:06] the way you think is going to influence

[51:08] what you do. And what you do is going to

[51:10] influence what you get. But it all

[51:12] starts with their mindset. Right? I call

[51:14] this the minority mindset because the

[51:16] minority mindset is about thinking

[51:17] differently than the majority of people.

[51:19] And the majority of people, especially

[51:22] in today's day and age, we live in this

[51:25] complaining society. We live in this

[51:27] self-mering society. We live in this

[51:29] victim mentality. We live in this

[51:31] society where we want to blame instead

[51:34] of wanting to change. Because guess

[51:36] what? It's easier to blame, right? When

[51:38] you feel crappy about where you are,

[51:39] especially financially, it's easy to

[51:42] blame your government and the boss. Man,

[51:44] it's because of all these taxes that we

[51:46] have to pay and all this government

[51:47] spending that we're broke. It's because

[51:49] my boss isn't paying enough that I'm

[51:51] broke. It's because my landlord keeps

[51:53] raising the rent that I'm broke. When

[51:56] what you'll see is some people in the

[52:00] same situation will be able to win

[52:02] despite all that other crap. Because

[52:05] guess what? There's a lot of crap in the

[52:07] world. Period. Now, either you're going

[52:09] to go in with that mindset of despite

[52:10] the crap, I'm going to win or I'm going

[52:12] to let the crap just parade on me. And

[52:14] you got to make that decision for

[52:15] yourself. Which one do you want to be?

[52:16] And this starts here. And I know this

[52:18] one is difficult because I've

[52:20] encountered a lot of different people

[52:21] and worked very closely with people with

[52:23] very different mindsets. And even if

[52:25] somebody is not skilled, they have no

[52:28] idea of how to do a particular task. You

[52:30] might have very little talents, but if

[52:32] you have the mindset, I'll do whatever

[52:34] it takes, you're going to have a much

[52:36] better shot at succeeding than somebody

[52:38] who's very educated, very skilled, very

[52:40] talented, but believes the world is

[52:42] against them and everything is against

[52:43] them. It's not about the skill and the

[52:46] talent, but it's about your mindset

[52:48] towards things. And then now, if you're

[52:51] in the situation, you got to be honest

[52:52] with yourself. I'm not telling you to go

[52:53] immediately change a mindset because

[52:55] that's not how it works. I I get that.

[52:57] in order for you to change your mindset.

[52:58] If you feel like, you know what, I feel

[53:00] negative. Yeah, I I do complain about

[53:01] other people. I do complain. I get

[53:03] jealous when I see people who are rich.

[53:04] I get envious when I see people who are

[53:06] rich. I get upset when I see rich people

[53:08] doing things. I get upset when I see

[53:09] people have nicer things than me. I wish

[53:10] I had them nicer things. Okay. All

[53:12] right. I'm just saying accept that and

[53:14] understand that because this is now

[53:16] going to be a process. And this is where

[53:17] you got to start. And the way that you

[53:18] do that now is you got to start diving

[53:20] into that personal development side of

[53:23] things. And now look, you're not going

[53:26] to change your mindset tomorrow. That's

[53:28] not how it works. But you got to start

[53:30] absorbing things to change the way you

[53:32] think. Because if you are constantly

[53:34] hating on other people, you're hating on

[53:36] other people's success, you wish you had

[53:37] the success and you just feel miserable

[53:39] because you don't have it and you're

[53:40] constantly complaining. And if you don't

[53:42] know this yourself, ask other people. If

[53:44] people around you say, "Man, you got a

[53:46] negative attitude." Or they're telling

[53:47] you this, take that for what it's worth,

[53:50] and start reading some personal

[53:52] development books. Start listening to

[53:54] personal development podcasts. Start

[53:56] watching personal development videos,

[53:58] things about mindset, things about

[54:00] growth mindsets, things about thinking

[54:02] bigger and abundance. And again, with

[54:04] abundance, I'm not saying you got to sit

[54:05] there and just meditate that, oh,

[54:07] everything's going to be bigger and

[54:08] better. No, that's not what I'm saying.

[54:09] I'm talking about just thinking that

[54:11] there's more opportunity out there.

[54:13] Because when you think there's more

[54:14] opportunity out there, you're going to

[54:16] start taking actions very differently.

[54:18] And when you start taking actions

[54:20] differently, you're going to see a whole

[54:22] new world of possibilities.

[54:25] And

[54:27] the life kind of works in this very

[54:28] weird way where we think that your

[54:33] trajectory in life is going to be this

[54:34] linear transaction. But that's not how

[54:37] it works. Life and success kind of work

[54:39] like a pinball machine where when you

[54:41] shoot a pinball, the pinball just goes

[54:43] everywhere. It goes up, down, circular,

[54:45] sideways left right circular

[54:47] straight, up, back. You never know where

[54:49] you're going to go next. And the most

[54:52] weird things might take you to a

[54:53] different trajectory, but that is what

[54:56] allows you to see the opportunities.

[54:58] There was somebody who was saying that

[54:59] success and opportunities are like

[55:02] buses.

[55:03] And you only learn bus schedule when you

[55:06] actually have to get somewhere. That's

[55:08] when you're going to actually notice the

[55:10] bus and be able to get on the bus. Those

[55:12] buses keep running even when you're not

[55:13] paying attention to them. But the only

[55:15] time you're ever going to pay attention

[55:16] is when you see the bus, when you see

[55:18] the bus schedule. But in order for you

[55:20] to see the bus schedule, you have to be

[55:22] willing to see the opportunities in the

[55:24] first place. I started off throwing

[55:26] parties in college. In fact, before

[55:28] parties, I was playing a drum at Indian

[55:30] weddings. Playing that drum at Indian

[55:31] weddings got me to meet DJs. Meeting DJs

[55:34] got me to start hosting parties. Hosting

[55:35] parties got me to realize I hated

[55:37] hosting parties. But that gave me money

[55:38] to start investing in real estate. When

[55:40] I started investing in real estate, I

[55:41] got my real estate salesperson's

[55:42] license. When I got my real estate

[55:44] salesperson's license, I became a real

[55:46] estate wholesaler. When I became a real

[55:47] estate wholesaler, I realized that I

[55:49] needed to do something more scalable.

[55:50] When I started doing that, I started

[55:52] getting more on the internet. I started

[55:54] e-commerce stores. When I started an

[55:55] e-commerce store, I got screwed over.

[55:57] When I got screwed over, I started a

[55:59] class on how to launch a business

[56:00] without getting screwed over. When I

[56:01] started that class, people said I need

[56:02] to get on social media, so I got an

[56:04] Instagram. When I got Instagram, people

[56:06] said I should start a blog. But English

[56:07] is my second language, so I didn't want

[56:08] to start a blog. Instead, I started a

[56:10] YouTube channel. Then I started a

[56:12] YouTube channel. And that gave me the

[56:13] opportunity to start something like

[56:14] Briefs Media. When I started Briefs

[56:16] Media, that opened up even more doors

[56:17] for me. So, you can see it was a

[56:19] pinball. I go from one place to the

[56:20] other to the other to the other. And

[56:22] when I was 18, 17, 19, I would have

[56:25] never predicted where I would be in 5

[56:26] years, 7 years, 10 years from then. But

[56:29] this is where you cannot expect what's

[56:32] going to come next and think, "Oh, this

[56:34] is not going to help me get to where I

[56:35] want to go." You just got to get

[56:36] started. Life is a pinball machine, but

[56:38] you have to start by changing that

[56:40] mindset. That way, you can actually get

[56:42] to the next place that you want to go.

[56:43] The second thing that you have to work

[56:44] on if you want to increase the velocity

[56:46] of your wealth is your commitment. And

[56:48] this might be as a business owner, this

[56:50] might be as an employee, this might be

[56:52] as an investor. And the biggest thing

[56:54] that I hear because especially in

[56:55] today's culture is, "Oh, I don't want to

[56:58] do too much at my company because uh I

[57:00] don't like this idea of doing more than

[57:02] what I'm paid for." Right? We talked

[57:03] about quiet quitting. We talked about

[57:04] all of these things happening in our

[57:06] culture right now where people are like,

[57:07] "I don't feel like I'm treated good

[57:09] enough in my company." But do you want

[57:10] to know what is a common trait amongst

[57:12] 99.9% of leaders, 99.9% of executives,

[57:17] 99.9% of overly compensated people is

[57:21] they had to go through a whole bunch of

[57:22] time of being undercompensated for what

[57:25] they did. These are the people that were

[57:27] the overachievers that did more than

[57:29] what they were paid for, that did more

[57:30] than what they were asked for, and went

[57:32] out of their way to succeed. So now, if

[57:35] your goal is to be overpaid, the way

[57:38] that you become overpaid is by being

[57:40] underpaid first. And you might feel

[57:42] like, what are you talking about? You

[57:44] mean I have to go to work and work

[57:46] harder and do things for my boss and

[57:48] make my boss richer? Yes, if you are an

[57:52] employee, the best way to get richer,

[57:54] meaning through your income now, through

[57:56] investments, right? We know that

[57:57] investments are how you really become

[57:58] wealthy, but the best way for you to

[58:00] make more money is by making your boss

[58:02] richer. Now, that might seem really

[58:04] counterintuitive, but the reality is if

[58:06] you are the person that gets into work

[58:07] early and you're overachieving and

[58:10] you're working harder and you're

[58:11] outperforming everybody else, who's

[58:12] going to be the first person to get that

[58:14] promotion? You. Now, you might be

[58:16] saying, "Oh, there's office politics."

[58:17] If your office politics are constantly

[58:19] overlooking you and treating you bad, go

[58:21] to a new company. Every company is not

[58:24] bad. Are there some crappy companies out

[58:26] there that pick the wrong people

[58:27] consistently and that are favoritising

[58:29] favoritising f picking whatever the word

[58:32] is? They're picking the wrong people

[58:33] that leave the company. Go to a company

[58:36] that will appreciate your hard work and

[58:38] your dedication. Because when you are

[58:40] the most valuable person in your

[58:43] department, the person who's going to

[58:45] get that bigger raise, the bigger

[58:47] promotion, that's going to be the last

[58:48] to get laid off, that's going to be the

[58:50] person that gets the most praise

[58:53] financially is going to be the person

[58:55] who's constantly busting their butt.

[58:58] Because from a company's perspective,

[59:00] what they want is valuable employees.

[59:03] And when you become more valuable,

[59:05] they're going to be willing to pay you

[59:06] more. And the reason why they're going

[59:08] to be willing to pay you more is because

[59:09] you have something that 99% of the other

[59:12] employees don't. And in order for you to

[59:14] do that, you got to make that commitment

[59:16] to put in the work. If you're just

[59:18] trying to coast by, I can guarantee you,

[59:20] you're always going to be struggling

[59:21] because that's the mindset you have

[59:22] towards everything in life. If you're

[59:23] just trying to get by and do the minimum

[59:24] amount of work, you're never going to be

[59:26] able to see the success that you want

[59:27] financially, that real financial

[59:29] success. If you're okay with where you

[59:31] are, then fine, keep coasting. You want

[59:32] to be average, fine, keep coasting. But

[59:34] if you really want to scale, you really

[59:37] want to earn more, you want to see that

[59:39] top level. You want to be the top food,

[59:41] the top dog in your company, you're

[59:43] going to have to outwork people, you're

[59:45] going to have to outperform people.

[59:46] You're going to have to outdo people and

[59:48] you're going to have to put in that

[59:50] commitment in order to do that. And

[59:52] sometimes, guess what? You're not going

[59:53] to get compensated right away, but

[59:54] you're going to have to keep doing

[59:56] things that people don't see. When I

[59:57] first started my YouTube channel, it's

[59:58] kind of funny. I think it took me almost

[1:00:01] a year and a half of constantly making

[1:00:04] my videos before I got my first YouTube

[1:00:06] payday. That meant I was putting out

[1:00:08] three videos a week, week after week

[1:00:11] after week, month after month after

[1:00:13] month after month after month after

[1:00:15] month after month after month after

[1:00:16] month. And let me remind you, I am a

[1:00:17] licensed attorney. My time is valuable.

[1:00:20] I could charge a lot of money to review

[1:00:22] contracts and to do business legal work.

[1:00:26] But I kept making YouTube videos. And

[1:00:28] for the first eight almost 18 months, I

[1:00:30] didn't get my first check. And when I

[1:00:32] got my first check, it was a few

[1:00:34] hundred.

[1:00:36] My first check of almost a year and a

[1:00:37] half worth of work. That's a lot of

[1:00:39] commitment to something that's not

[1:00:40] making me any money. But today, guess

[1:00:42] what? I'm getting overpaid on YouTube.

[1:00:45] Why? Because I got underpaid in the

[1:00:46] first place. If you want to get

[1:00:48] overpaid, you got to get underpaid in

[1:00:49] the first place and put in the work that

[1:00:51] other people are not willing to do. The

[1:00:52] third thing that you have to fix if you

[1:00:54] want to accelerate your velocity towards

[1:00:55] wealth is you got to fix your

[1:00:57] discipline. Now discipline is a lot of

[1:00:58] things, right? Once you start building

[1:00:59] that commitment, you're going to be

[1:01:00] working on that discipline to get to

[1:01:01] work. But it's also the discipline

[1:01:03] financially. Because the reality is

[1:01:06] becoming wealthy is as much mindset as

[1:01:08] it is what you do with your money.

[1:01:09] Because the thing that holds so many

[1:01:11] people back from becoming wealthy is

[1:01:12] you're telling me I got to invest my

[1:01:14] money today and invest it for years

[1:01:16] before I see any return. Yeah, that's

[1:01:18] the whole name of the game. And people

[1:01:20] have to see that light at the end of the

[1:01:22] tunnel right in front of them because

[1:01:24] they need to see the return today. I

[1:01:25] need that instant gratification. I need

[1:01:27] to see the growth today. I want to

[1:01:28] double my money in six months. And when

[1:01:30] you don't have the discipline of knowing

[1:01:32] to trust the system, trust the process,

[1:01:34] and continuing putting in the reps. It's

[1:01:37] very hard to do that. It's the same

[1:01:38] reason why it's so hard to lose weight

[1:01:40] because unless you see the the the

[1:01:43] success quickly, it's very hard to stay

[1:01:45] committed. But the reality is we know,

[1:01:47] right? If you want to get in shape and

[1:01:49] lose weight, what do you got to do? You

[1:01:50] got to eat better. You got to eat

[1:01:51] healthier, you got to put in more

[1:01:52] exercise, period. Right? Uh now, you can

[1:01:54] get into all the nitty-gritty of the

[1:01:56] types of nutrition and the types of

[1:01:57] diets and the types of exercise that you

[1:01:59] do, but at the end of the day, you got

[1:02:00] to eat better. You got to work out more.

[1:02:02] You got to put in more reps. And now,

[1:02:04] maybe in the beginning, you start to see

[1:02:05] a little bit of success, right? Because

[1:02:06] when you go to from really fat and

[1:02:09] unhealthy and you hit the gym for the

[1:02:10] first time and you start eating salads

[1:02:12] for the first time, yeah, you might lose

[1:02:13] some weight very quickly. But then you

[1:02:14] kind of hit this plateau where yeah, you

[1:02:17] got two months of solid success. Now

[1:02:18] you're in month three and now things

[1:02:19] starting to get hard because now yeah,

[1:02:21] you're not eating as many Twinkies and

[1:02:23] Ho Hos anymore. You're not eating the

[1:02:24] pizza like you were anymore. You're

[1:02:26] starting to miss the McDonald's. You're

[1:02:29] starting to miss all the unhealthy

[1:02:31] foods. And you're also like, you know, I

[1:02:33] I haven't really noticed a difference in

[1:02:35] my body in the last two weeks. Do I

[1:02:38] really want to keep putting in this

[1:02:39] work? And now you're going to be put to

[1:02:41] the test of what do you really want to

[1:02:43] do? And the people that are going to win

[1:02:45] are going to keep putting in the reps

[1:02:47] because you got to keep working. And of

[1:02:48] course, yeah, you got to keep improving

[1:02:50] the types of reps that you're doing. You

[1:02:52] got to work on your physical and

[1:02:53] financial education, but you got to keep

[1:02:55] putting in them reps. And it's the same

[1:02:57] thing financially. You got to keep

[1:02:58] putting in the reps. You got to keep

[1:03:00] investing your money. Sometimes you're

[1:03:01] going to see down markets where you're

[1:03:02] going to feel like you're losing money.

[1:03:03] You got to keep putting in the reps.

[1:03:04] Sometimes you're going to see bad things

[1:03:06] happen in the economy. You got to keep

[1:03:07] putting in the reps. Sometimes you're

[1:03:09] going to see the economy booming. You

[1:03:10] got to keep putting in the reps.

[1:03:11] Sometimes you're going to lose your job.

[1:03:12] You got to keep putting in the reps. You

[1:03:14] got to keep doing the things that are

[1:03:17] going to make you wealthy, right? You

[1:03:18] got to keep investing your money. You

[1:03:19] got to keep living below your means. You

[1:03:21] got to keep working to build up the

[1:03:22] savings cushion. You got to keep working

[1:03:23] to build up the cash flow because that's

[1:03:25] what's going to make you wealthy. And in

[1:03:27] the beginning, sure, it's exciting. Oh,

[1:03:28] I'm going to get rich. And then and then

[1:03:32] and then you started getting those

[1:03:33] offers of how you can get rich in six

[1:03:35] months with the six-step formula. All

[1:03:37] you got to do is pay me $997.

[1:03:40] Now, there's not I'm not hating online

[1:03:42] education. I actually love a lot of

[1:03:43] online education, but there's a lot of

[1:03:44] crap out there, too. And if all you're

[1:03:46] trying to buy is that way to get rich in

[1:03:48] six months, what do you think is going

[1:03:50] to happen? Because now you're trying to

[1:03:52] get away from the real process. You

[1:03:56] cannot you cannot bypass hard work. You

[1:03:59] cannot bypass the commitment. You cannot

[1:04:00] bypass the sacrifice. You cannot bypass

[1:04:02] the mindset. You cannot bypass the

[1:04:04] discipline. Period. It takes discipline

[1:04:06] if you want to be able to succeed. And

[1:04:07] you got to make sure you're putting in

[1:04:09] the reps even when things are hard. If

[1:04:11] you really want to be able to see that

[1:04:13] success financially, physically, in any

[1:04:15] part of your life, even in your

[1:04:16] relationships, guess what? Things are

[1:04:18] going to get hard with your wife, with

[1:04:20] your [snorts] husband. Things will go

[1:04:22] through rough patches, but you got to

[1:04:24] keep loving that spouse. You got to keep

[1:04:26] coming back and showing them love if you

[1:04:28] want to be able to make it work.

[1:04:30] Everything is going to go through tough

[1:04:31] phases, but you got to be willing to

[1:04:33] have that discipline to keep coming back

[1:04:36] and keep putting in the reps. And the

[1:04:37] fourth thing that you have to work on if

[1:04:39] you want to increase the velocity of

[1:04:40] your money is your risk tolerance. The

[1:04:42] biggest thing that I hear, the biggest

[1:04:45] criticism that I hear about investing is

[1:04:46] what happens if I lose money? What

[1:04:49] happens if I buy in an investment and

[1:04:51] then it goes down? What happens if the

[1:04:53] economy crashes? What happens if the

[1:04:55] market crashes? Well, let me tell you

[1:04:56] this. You are going to lose money.

[1:04:59] Period. When you invest your money,

[1:05:01] everybody will lose money at some point.

[1:05:02] Period. That's not just a possibility.

[1:05:05] It's a fact. Every single person in the

[1:05:08] game has lost money at some point. But

[1:05:10] when you don't take that risk, you're

[1:05:12] also guaranteed to lose money because

[1:05:14] now, not only are your savings going to

[1:05:16] lose value to inflation, but you're also

[1:05:17] missing out on huge opportunities.

[1:05:19] That's a loss, too. Because if you don't

[1:05:21] invest your money and you don't see that

[1:05:22] growth, there's a risk to that because

[1:05:24] you might be broke now, scared to take

[1:05:26] that risk and then you're going to be

[1:05:27] broke 10 years from now, too, because

[1:05:29] you didn't take that risk. And so, this

[1:05:30] is where now you have to understand risk

[1:05:33] is associated with the game. But that's

[1:05:35] how you learn. You learn through

[1:05:36] mistakes. You learn by putting your skin

[1:05:38] in the game. You learn by actually

[1:05:39] putting your money to work. I have lost

[1:05:40] money in investments. I've talked about

[1:05:42] this openly. I made a video on my

[1:05:44] YouTube channel talking about my worst

[1:05:46] real estate deal ever. If you haven't

[1:05:47] seen it yet, go ahead and watch it. see

[1:05:50] what it's like to lose money. I will

[1:05:52] walk you through the deal. I walk you

[1:05:53] through the deal and show you all the

[1:05:54] things that went wrong because I was

[1:05:56] early. I was young when I bought that

[1:05:57] deal. I did not know what I was doing

[1:06:00] and I made every mistake possible. And

[1:06:02] you'll see the stress and the financial

[1:06:03] stress that I went through. It was not a

[1:06:05] fun time, but I learned so much in that

[1:06:08] one deal that you cannot bypass that

[1:06:13] work. Yeah, it was very stressful when

[1:06:14] it happened. I can look back and laugh

[1:06:15] at it now. I can look back and talk

[1:06:17] about all the funny things that happened

[1:06:18] now, but during that time it was very

[1:06:20] stressful. I was losing a lot of money

[1:06:22] at a time when I didn't have that money

[1:06:23] to lose. But that's a part of the game.

[1:06:25] You got to be willing to go through the

[1:06:27] process. And what's interesting is as

[1:06:28] you get bigger, the the risk also gets

[1:06:31] bigger. When I was first starting off in

[1:06:33] my event planning companies, I my first

[1:06:36] party was a flop because we had some

[1:06:37] issues with the original club that we

[1:06:39] were going to work with. That lost me

[1:06:41] maybe a thousand dollars, which was like

[1:06:44] a ton of money for me back then. That

[1:06:46] was pretty much all the money that I had

[1:06:47] in my bank account when it was my worst

[1:06:48] real estate deal ever. Now we're talking

[1:06:50] tens of thousands of dollars, which was

[1:06:51] again pretty much everything that I had

[1:06:53] in the bank account. It was a lot of

[1:06:55] money. And then going forward even more,

[1:06:57] you know, when I was running the

[1:06:58] minority mindset trying to build a blog,

[1:06:59] I spent half a million dollars trying to

[1:07:01] build a blog because I hired the best

[1:07:03] consultants. I built a team and I was

[1:07:04] just trying to throw money at the

[1:07:05] problem trying to fix it. It was a

[1:07:07] complete flop. $500,000 down the drain.

[1:07:10] Yes, risk comes, but without that risk,

[1:07:13] you're never going to be able to see the

[1:07:14] growth. And this is where you have to

[1:07:16] get started, but also understand that

[1:07:17] those mistakes are not killers of your

[1:07:20] total financial success. You might have

[1:07:22] lost a deal, but you'll lose the

[1:07:24] investment. You'll win the investment

[1:07:26] game if you keep coming back. And yes,

[1:07:30] you're going to keep learning. Every

[1:07:31] phase in your life is going to have new

[1:07:33] risks, new lessons, and new education.

[1:07:36] But you got to be willing to come back

[1:07:37] each and every time. And the reason why

[1:07:39] all these topics are so important for

[1:07:41] you to understand right now is because

[1:07:43] of all the risks that we have in our

[1:07:44] economy right now. The United States of

[1:07:46] America needs a recession to save our

[1:07:49] economy. At least that's according to JP

[1:07:52] Morgan Chase Bank, who says that our

[1:07:54] economy needs a recession. Let me read

[1:07:56] you a JP Morgan Chase Bank, the largest

[1:07:58] bank in the United States, said in a

[1:08:00] note to their investors. They said,

[1:08:02] "While the United States economy's

[1:08:04] recent resilience may delay the onset of

[1:08:06] a recession, we believe that most of the

[1:08:08] lagged effects of 2022's monetary

[1:08:11] tightening have yet to be felt, and

[1:08:14] ultimately a recession will likely be

[1:08:16] necessary to return inflation to target.

[1:08:20] What does that mean?" In 2022, the

[1:08:22] Federal Reserve Bank started raising

[1:08:24] interest rates for the first time. We

[1:08:25] started off slow with those 25% interest

[1:08:28] rate hikes, the 0.25% interest rate

[1:08:30] hikes. Then we got more aggressive with

[1:08:32] the 75% interest rate hikes and we

[1:08:34] continued to do that throughout all of

[1:08:36] 2022 and we're continuing or we have

[1:08:38] continued to raise interest rates a

[1:08:40] little bit in 2023. And what JP Morgan

[1:08:43] Chase Bank is saying is that we haven't

[1:08:45] felt the full effects of last year's

[1:08:47] interest rate hikes and we're still

[1:08:49] raising interest rates now. Now in order

[1:08:52] to bring inflation down right the Fed

[1:08:54] has to raise interest rates and there is

[1:08:57] a lagged effect a delayed effect to the

[1:09:02] pain from higher interest rates which

[1:09:04] you haven't felt yet. Uh the general

[1:09:06] rule of thumb is that it takes somewhere

[1:09:07] between 12 to 18 months to feel the

[1:09:09] effects of interest rate hikes. We're

[1:09:11] now starting to feel the pain of 2022's

[1:09:14] interest rate hikes which JP Morgan

[1:09:16] Chase Bank says that we haven't fully

[1:09:17] felt yet. And they're saying that number

[1:09:19] one, we still have to feel more of that

[1:09:21] pain. And number two, in order to really

[1:09:23] bring inflation down, we're going to

[1:09:25] have to see more of this economic pain,

[1:09:27] what they said, a recession that it

[1:09:29] might be necessary in order to bring

[1:09:30] inflation down. And the reason why is,

[1:09:32] well, you can think about it, especially

[1:09:34] with housing prices because CPI or

[1:09:37] inflation data is made up of a lot of

[1:09:38] different components and one of the main

[1:09:40] components and that is housing. So when

[1:09:43] you have a lot of people with money to

[1:09:44] go out and buy a home with low interest

[1:09:46] rates, what happens? Everybody wants to

[1:09:48] buy a home. Now you have a home listed

[1:09:49] for $400,000. You have 35 different

[1:09:52] offers and the home sells for $475,000.

[1:09:55] Home prices go up. Now home prices go

[1:09:57] up. That data goes to the inflation. The

[1:10:00] CPI data which says home prices went up.

[1:10:03] Inflation is higher. When inflation is

[1:10:06] higher, the Federal Reserve Bank has

[1:10:08] more fuel to continue raising interest

[1:10:10] rates. So now when you have say higher

[1:10:12] interest rates, demand starts to go

[1:10:14] down. But it hasn't gone down to the

[1:10:17] point where we're seeing inflation

[1:10:19] really fall to the levels that the

[1:10:20] Federal Reserve Bank wants. This is why

[1:10:21] the Fed keeps saying that bringing

[1:10:23] inflation down has not happened yet and

[1:10:26] it's going to take more work. So now

[1:10:28] what happens if you have a recession? If

[1:10:30] you have a recession now, that means the

[1:10:32] economy is slowing and generally that

[1:10:34] would mean that less people are going

[1:10:35] out to buy homes and generally that

[1:10:36] would mean that well sellers would be

[1:10:39] having to cut the prices of their homes

[1:10:40] to get their home sold. Cuz we've heard

[1:10:42] a lot of news, especially when the stock

[1:10:44] market's going up, that the economy is

[1:10:45] booming and everything is great. And

[1:10:47] what does that really mean? Because what

[1:10:48] you have to understand is that

[1:10:49] recessions don't happen when people

[1:10:51] expect them to happen. They happen when

[1:10:53] people stop believing that they're going

[1:10:54] to happen. And what JP Morgan Chase Bank

[1:10:57] is saying is that the investment into

[1:11:00] equity stocks still does not seem like

[1:11:02] the best investment for them because of

[1:11:04] all the factors that they highlighted.

[1:11:06] They talked about the likelihood of a

[1:11:07] recession coming in the coming quarters.

[1:11:09] What does a recession do? That generally

[1:11:11] brings asset prices lower stock prices

[1:11:13] lower. So because of that they said this

[1:11:15] might not be a good time for them to be

[1:11:17] dumping a ton of money into the general

[1:11:19] stock market. The second thing they said

[1:11:20] in that same sentence is higher interest

[1:11:22] rates. What do higher interest rates do?

[1:11:24] They make borrowing more expensive. They

[1:11:26] cool down demand. And what they're also

[1:11:28] saying is that we still have to feel the

[1:11:30] full effect of the higher interest

[1:11:31] rates, which we haven't felt yet. So,

[1:11:33] they're saying that we're going to see

[1:11:34] more pain coming because of the higher

[1:11:36] interest rates. Third, tightening

[1:11:38] liquidity. Tightening liquidity means

[1:11:40] less money entering our economic system

[1:11:42] because banks are less likely to loan

[1:11:43] money. Banks are going through their own

[1:11:45] regulations to bring less money into the

[1:11:47] economy. That means less spending, less

[1:11:50] ability for people and companies to buy

[1:11:52] assets, less ability for people and

[1:11:54] companies to spend. Less spending means

[1:11:56] less economic growth because our

[1:11:58] economic system is designed on spending.

[1:12:00] The more money you spend, the richer

[1:12:02] somebody else makes. And when you have

[1:12:03] tightening liquidity, there's less

[1:12:05] spending ability, which means people and

[1:12:07] companies have less ability to spend

[1:12:09] money, which means less growth in the

[1:12:12] economy. And then they said rich

[1:12:14] valuations which means essentially that

[1:12:16] they still believe that the stock market

[1:12:17] is overvalued. They say the stocks

[1:12:19] essentially companies valuations are too

[1:12:21] high and because of that they're not

[1:12:23] investing as aggressively into equities

[1:12:25] right now. This is directly from JP

[1:12:27] Morgan Chase Bank. Now you don't want to

[1:12:28] blindly follow what they do. You don't

[1:12:29] want to blindly follow what I do. You

[1:12:31] don't want to blindly follow what

[1:12:32] anybody does. But rather understand the

[1:12:34] different opinions out there. That way

[1:12:36] you can make the best decisions for

[1:12:37] yourself. Because guess what? When the

[1:12:38] stock market is booming, you start to

[1:12:40] see the sentiment that, oh, the economy

[1:12:42] is not going to see any recession, that

[1:12:44] the world is great, everything is fine,

[1:12:45] and nothing can go down. As soon as you

[1:12:47] start to see the stock market slightly

[1:12:48] go down, things flip. Everybody says,

[1:12:50] oh, we're going to enter a recession,

[1:12:51] everything is bad, everything is going

[1:12:52] to go wrong, the whole world is going to

[1:12:54] end. And this is where you as a

[1:12:56] financially educated person have to be

[1:12:58] about to cut through the noise, cut

[1:13:00] through the emotion, learn from

[1:13:02] different people. Some people think that

[1:13:04] the world is going to end. Some people

[1:13:05] think that the world is going to boom

[1:13:07] and the economy is going to boom and you

[1:13:08] have to be able to find the right

[1:13:10] information to help guide your

[1:13:12] investments. Instead of being an

[1:13:13] emotionally driven investor, be an

[1:13:16] educated and financially driven

[1:13:18] investor. The housing market is about to

[1:13:20] shift again and this time it's for

[1:13:22] reasons that you might not expect. And

[1:13:24] this next shift comes at an interesting

[1:13:25] time because housing affordability is at

[1:13:28] the lowest level we have seen since the

[1:13:29] early 1980s. And for the first sustained

[1:13:32] period in history, it is cheaper to buy

[1:13:35] a new house than it is to buy a used

[1:13:37] house.