Kind: captions
Language: en
if people can go all right this is
volatile stock market's volatile
crypto's volatile housing markets can
even be volatile I'm not going to panic
in a down moment I'm going to set myself
up where I'm not investing more than I
can afford to lose I'm not doing this on
debt you have to keep your income going
so whatever it is whether it's a job or
whatever you have to be very thoughtful
about that but setting yourself up
well knowing that there's going to be a
downturn that it's about time in the
market instead of timeing the market
right and then you can just ride this
out exactly and I think for the majority
people the vast vast vast majority of
people that is the best advice that you
can give them don't invest with debt
don't invest more that you can lose and
I'm going to take it one step further
because I think for 90% of people out
there regular retail Traders investors
you don't need to be buying individual
companies just put your money into a
lowcost ETF into lowc cost index fund
and that's it facts what are those
though and so Jos bre most people don't
know what that means so let's let's
break that down so an ETF is an exchang
traded fund and it is literally a group
of companies a basket of stocks so
instead of you going out and investing
in let's just say McDonald's the
corporation and now all your eggs are in
McDonald's meaning all of your money is
in the investment in McDonald so if
McDonald goes up you can make a lot of
money if McDonald goes down now you're
going to be panicking because your whole
portfolio is down well the issue is you
have the most upside but also the most
risk because if the executives at
McDonald's run their company into the
ground and they go bankrupt your whole
investment's gone now if you invest into
something like an ETF or an index fund
which are very similar to each other now
you have a group of companies where now
it might be McDonald's and 499 other
companies so now what happens you lower
your risk you lower some of your upside
but you also lower some your downside
because now if you run through that same
scenario where the McDonald's Executives
run the corporation into the ground and
they go bankrupt well you got 499 other
companies in the portfolio so you're
okay and so then what can happen in a
lowcost ETF or an index fund is they
have computers and this is automated
where they will kick out McDonald's
because now they're no longer fits
within this 500 companies and then
they'll put in another company to take
the place at McDonald's so now it's
passive on your end because if you're
not willing to put in the work to do
that active investing to do that sort of
fundamental analysis meaning listen to
the earnings calls study the revenue
study the profits study what the
corporation is doing if you don't care
about doing that if you don't want to do
that and if you're not willing to do
that don't invest in individual
companies because now you're taking on
all the risk hoping for some upside
versus you can mitigate a lot of that
risk by just investing in ETFs or index
funds and you can do this right off of
really any stock brokerage app out there
and now you can buy them now how do you
buy them well two strategies passively
or actively passively which is a great
strategy is now ideally every week or
anytime you get paid you put a little
bit of money automatically into this ETF
or index system do you use for that so I
use a platform called M1 Finance there's
M1 Finance M1 Finance there's tons of
brokerages out there you can find
whatever one you want where now it is
completely passive money is
automatically pulled out of my check in
account on Wednesdays you pick the day
it doesn't matter and it's automatically
invested dollar cost averaging dollar
cost averaging into my portfolio ETF so
I have a number of different ETFs in
there happens every week whether the
Market's up whether the Market's down
and I don't touch it it just does its
thing the active side would be now
you're looking for a good price point
and this is where it gets a little bit
more advanced where if you're willing to
do the research you know you can you can
pick ETFs or index funds where if you
see a big CR crash you see prices go
down you can put more money in or now
you can start looking for good companies
that you believe are undervalued but
again this now gets a little bit more
advanced where you have to ask you a
really blunt and interesting question
yeah the average person they're not
financially literate would you rather if
they had $1,000 would you rather they
play blackjack or try to actively trade
that money play blackjack or actively
trade that money don't trade I think
trading unless you want to do what to
learn I trade it I'll give you my person
experience I know you would trade
because you know what you're doing well
I wouldn't trade I would invest even you
wouldn't trade would how trade your only
options Blackjack active trading so
explain it I'm not a casino person so
Blackjack is the one where you go to 21
oh you're going to lose either way oh
you're going to lose either way the
reason I bring this up is I really think
that the average person would be better
off taking their thousand to Vegas and
playing Blackjack because it will be fun
if you try to actively trade you're
going to lose your money now is that
100% of the time no of course not but
Ray doio for people that don't know runs
the largest hedge fund in the world when
he explains this I'm like oh my God I'm
never going to try to active trade he
said you're going up against people like
me I spend whatever $200 million a year
on Research yeah and I have ai which is
making trades in milliseconds we know
how fast the fiber optic cable is to
make sure that our trades go through
slightly faster than the other person
which can be the difference between you
know a percentage point which could be
millions of dollar he was like you're
going to lose and he was like it's hard
for us and we've got whatever 1,500
employees like I said AI that they've
been building for the last 25 years
fiber optic cable measuring things in
milliseconds he's like the odds of you
finding something that we haven't
already traded on is basically zero yeah
every person that I know this is a very
small sample size guys I am well aware
of that every person that I know has
lost money on a long enough timeline
actively trading yeah the only people
that make money are people that are that
and I will use my language this is how I
think about myself I am too stupid to
beat the market I'm too stupid to be Ray
doio that's for sure and Ray's entire
team and Ai and all that so actively
trading is off the table just because I
know it would be like me trying to play
uh professional soccer right I'm going
to get my ass handed to be my by Messi
the the difference between me as a
footballer yeah and Messi is the same as
me as an active Trader and Ralia right
the the Gap is so catastrophically large
that at least playing Blackjack I would
have a good time I think the difference
is now differentiating active trading
versus active investing because trading
I tried trading once somewhere in
college and I spent every day staring at
charts candles which are these little
ways that you can make a stock chart and
you get glued to the screen you glued to
the emotion and it is very difficult
yeah watching candles is emotionally
yeah addictive and so I stopped it
because I realized I was never going to
make any real money doing this active
investing what I mean by that now is
you're looking at companies and when you
see this company fall because the whole
world is getting scared the whole Market
is tanking well this is an opportunity
for you to come in buy a great company
at a discounted price and then you just
hold on to it now would you do that at
the company level or at the ETF index
Lev now again who is the person for me I
would do it at the company level for the
average person do it at the ETF level
because again you have to be willing to
put in the work to research companies
keep up with the earning statements if
you want to buy and hold for the long
term I are you doing active trading
right now not right now but active
invting active investing I am not
actively investing my money into the
market I'm passively investing the
reason why for one active investing
means I'm putting my money into the
market when I see a great buying Point
second thing is it's now going just my
personal life what is the best use for
my money right I invest my money in five
places my own business I put my money
into real estate into stocks into crypto
into physical gold in this order right
now I see the most opportunity in my own
business Market briefs and so instead of
actively putting my money into the now
your favorite thing you read every
morning it's a great newsletter right so
it's where uh breakdown what's happening
in the financial markets into a fun
witty easy to read email but for me I
see the opportunity there it is the
biggest purpose for me on yourself and
the most excitement for me so instead of
me putting my money into the market
instead of me putting more money into
real estate which I love doing I've been
stopping these active Investments and
putting more money back into Market
briefs that way we can build the company
build the infrastructure build it into
something bigger and so now obviously I
knew the punchline which is why I asked
the question but I want people to
understand that you make a living
researching this stuff knowing about it
and even you aren't doing the active
investing you're doing passive for sure
very wise set that up but for the
average person the average person the
odds that they will do better by trying
to go in and saying oh I know where this
is going well enough to know that now is
a good time to buy McDonald's whatever
they're they're going to have heard
headlines about Tesla and things like
that and and I'm not saying that there
aren't moments to present themselves but
like if you watch Wall Street bets do
you watch Wall Street bets I've readit
at all it's scary you get these kids
committing suicide because they don't
understand like um uh they'll do
something where I forget if it's calls
or puts or whatever I I am so not good
at this I want people to be I know my
limits but whatever it is where there's
an unlimited downside yeah and so they
end up owing
$75,000 all of a sudden and they're like
uh what do I do and so now they're just
absolutely devastated yeah so anyway uh
so let's put trading out the window be
so careful don't be trading don't trade
your money and now when you're investing
in money don't invest with debt don't
invest more than you I want to go back
to recession yeah I think this is a huge
moment of opportunity even though I'm
warning people as vifly as I can about
trying to beat Ray alio I do think that
understanding that if you're playing
your cards right and you're not
overextended and you've done what you're
talking about you've got your five
buckets of investment we're going to get
into remember to hang till the end
because I'm going to give you the eight
things that just Bri teaches a lot uh
but if they're doing it well this is
Black Friday for assets and if people
think of it that way like don't get
yourself in trouble don't be
overextended don't have debt uh but if
you think of this as Black Friday
there's huge opportunities and this
really is a moment where I want people
to pay attention and take advantage of
this moment I am so hungry for the
average person to get educated on this
stuff because I am I have lived the
American dream and I mean not that like
it's your house and all that but but
that you can change classes I grew up
lower middle class and now I'm wealthy
and so I'm like no no no this is a set
of ideas if you get your head around the
right ideas like you can really win yeah
but you have to simplify simp y simplify
and because of the internet because of
meme culture people get so caught up in
the emotion it's the one thing you can't
do and you have to be like Stone Cold
logical you have to get that emotion out
and it's hard because everywhere look on
the internet YouTube
included there's a lot of emotion now
I'm going to I'm going to be completely
blunt to completely honest here because
I'm going to talk about how the YouTube
algorithm works because I think we've
talked about this before I see this on
my own platform where
sometimes YouTube is going to promote
certain video titles over the other so
let's talk about the market going down
if I say you one YouTube title is the
market goes down 3% here's what you need
to know be prepared for market crash
what's going to get more clicks be
prepared for Market CR be prepared for
market crash now I hate that because I
hate these titles now you're going to
say Just Breath but you and every major
YouTuber has titles that sound like this
oh someone got to this video through a
clickbait title someone got through this
right and and that's and so now let's
let's dissect this because I have a team
and for a very long time they kept
saying just make these types of titles
and I refused and what happened views
went down like this now I had a heart
tohe heart with a couple people on my
team where they were like just B listen
your videos are I'm saying what they
said I don't want to sound like a super
narcissist but they're like your videos
have real Financial educ
that people need to hear and it's better
than what a lot of people are putting
out I was like okay they're like if this
title is what it takes to get people to
learn what you're saying within the
video why not make it m and so it was
one of those things where I was like oh
my God I hate this but it's the only way
to provide that Financial education to
get people to click it because if I can
get you to click that video and now I
can provide you real Education Without
say oh my God I need to panic and sell
no understand the opportunities be calm
look for the options that's my goal so
it's one of those things where I see it
because I'm in it and you know I'm going
to talk about Market PRS for another
second because that's another driving
reason for me wanting to create Market
briefs because the internet is full of
sensationalism especially in the titles
because they need to get you to click
that's how just the internet works it's
the reality okay I mean it is what it is
I have fought it for a long time I hate
it but it's the reality now the reason
why I like Market briefs and the reason
why I'm so passionate about it is
because we can completely separate
ourselves from that because now we are
one email we are you know you know when
is coming into inbox every day it
doesn't matter what the title is because
it's in the email once you open the
email everything is right there and so
now we can give you the actual news
without any of that you know that hyp
and so that's the way you know you and I
operate but there's a lot of people now
that take it one step further that even
the news then the actual content of the
news becomes just super crazy
sensational that doesn't make any sense
that's sometimes an outright lie which
then takes it one step further where now
you have to be able to dissect the crap
dissect the good because the reality is
if it doesn't have a quote unquote click
baity title you're never going to see it
it's never even going to cross
your phone your screen it it will be
hidden into the depths of the
internet so now if you see it and has a
clickbait title the question is what's
inside that content and that's where you
have to be able to dissect and dig a
little bit deeper understand if this is
good and if this is not and the general
rule of thumb is that generally when
times are good they're typically not as
good as the media makes it seem and when
times are bad it's typically not as bad
as the media makes it seem it's usually
somewhere in the middle and this is
where now you have to really be able to
understand and do that Financial
education for yourself now as an
investor but the best thing is you know
just just keep investing your money
looking for those opportunities but then
also be able to understand what's
happening which is taking some of your
emotions out of the equation and so this
is now kind of you know building that
Financial education where it's difficult
to do but it's so important especially
in this day this age where the internet
is our means of Education where
accessibility is so much more where
anybody can invest and put their money
into the markets anybody has access to
these tools like one thing that I want
to mention is when we talk talk about
Building Wealth whether in a recession
not a recession the majority of people I
think assume that it's a lack of tool
set that's stopping them from getting to
where they want to go when in reality
for the majority of people it's a lack
of mindset most of us have access to the
tool set it's just a mindset that's
lacking you don't need to money what's
the mindset problem the mindset is one
believing I don't have enough money I
don't have access to enough tools I
don't have access to enough things to go
and do it that if I want to go and build
a business I need this this this and
this I need $10,000 I need $100,000 to
go out and do that I need to have this
type of degree I need to have this type
of parent I need to have access to these
types of people in order to go out and
build a successful business if I want to
go out invest my money I need $10,000
before I can invest for it to be
worthwhile why would I want to start
investing with $10 what is that going to
do when in reality these small
Investments do build up if you are 21
years old today and you start by
investing just $100 month which is just
over $3 a day and you do this
consistently until you retire until
you're 65 years old 66 years old and you
can get an average 10% return on your
money that doesn't mean it's a 10%
return every single year it's an average
10% return over the course of investment
which is the average stock market return
you will retire a Millionaire on the
$100 investment assuming you never
increase the amount of money you're
investing and we're talking about less
than $4 a day whoa whoa whoa whoa whoa
whoa whoa that that's $100 a month not a
one time $100 $100 a month less than $4
a day you put $100 a month for the rest
of your life years and so even if you
get a raise and you never put another
Penny into your
Investments you will be able to retire a
Millionaire on the $4 a day that you're
putting aside yeah see that's why I want
people to get stoked on that like look
there is an entrepreneurial side and we
can talk about that later that's
exciting and high risk and pour yourself
into it you you will get kicked in the
face over and over and over but if you
care about the thing that you're doing
and you have a strong enough why even
losing can be incredibly
fulfilling but that's a separate bucket
when it comes to investing and thinking
about retirement it is a totally
different ball game that comes it really
does boil down to buy low and sell high
now how do you get to that point you can
do what you just talked about which is
you put a little bit of money in doing
dollar cost averaging and you may be
dollar cost averaging simply because you
don't have the capital saved up to do it
any other way right uh by the way
capital is just a fancy word for money
so you don't have the money saved up to
do it any other way so you're just every
paycheck it's pulling out you say you do
it on Wednesdays whatever just it at
some increment it's pulling some amount
of money which can be very small to your
point $100 a month um but doing it
consistently and not selling in moments
where everybody else is freaking out and
then like as advanced as you need to get
is if we're in a downturn and you're
doing your ETF or your index and you
know that we're in the middle of a
difficult time maybe instead of $100
that month it's $150 or $200 right it's
you're not going crazy you're still just
dollar cost averaging but now you know
that when it's Black Friday for assets
that you're going to spend a little bit
more just because you know it's going to
go farther exactly but it isn't sexy man
and this is why like having now
witnessed Euphoria I'm like people act a
fool and I had the impulse to act a fool
I was like no no no go more you're so
smart like you get this this is and I
was like I know better than that I am a
fool the only thing I can hope for is
that by staying rational and calm and
not overextending that I can stay in
this long enough to sort of wash out my
ignorance exact just just through time
exactly the wall I think it's Wall
Street Journal I used to do this thing
back in the day where they used to bet
against a monkey where a monkey would
throw darts at a stock I love this
already and they would uh compare what
the Monkey Picked against Traders really
happened this really happened look it up
on Google and so the monkey obviously
had no uh Financial education it just
literally threw dots at these companies
it would hold on to it but I think it
was a 10e span or it was long-term thing
compared against these Mass Traders
guess who won not the Traders the monkey
oh my God and it just shows can we turn
that into a t-shirt that feels like a
t-shirt this is so hilarious real it's
really important for people to
understand a monkey outperform
professional Traders professional
Traders I'm going to have to look this
up this is way too important this this
is the reality where it it's it's just
the value of owning an investment for
the long term and it like you said that
short richness is loud it's flashy
everyone talks about oh my God I double
my money in this meme stock oh my God I
made so much money here it's loud and
splashy but that's also fleeting it's
the first how lose money where it's like
yeah you gained all that money but then
you lost it all exactly but that other
the real wealth real true sustainable
wealth is built in silence it's quiet
because it just keeps happening in slow
increments over time and now you start
to build this you know there's that
snowball analogy where from Michigan
right we have snow there you start by
building a small snowball like this you
put it on the ground and you start
rolling it in the beginning you got to
roll it a lot because you have this much
surface area to pick up as much snow as
you can as it gets bigger it grows
faster because now you have all the
surface area that can pick up more snow
so you roll it and it picks up more snow
and gets faster and bigger and faster
and bigger and faster and bigger and
before you know it now you can have a
massive pile of snow but the initial one
is the hardest because you're starting
with $100 you're like what's $100 going
to do but if you stay consistent with
the $100 and if you make more money you
keep putting more money in and you just
stay consistent letting the $100 grow
then you put in another $100 now the
first $100 is growing and then you add
in another $100 and then you add in
another $100 now the first $100 has
grown hopefully the second1 has grown
hopefully now you added another $100 to
grow and you just keep doing that month
after month after month after month now
you're really starting to build the
snowball that's growing and growing and
if you look at this not month after
month but year over year that's when you
really start to see the returns but the
problem is who wants to wait that long
nobody wants to wait 10 years 20 years
30 years because we're thinking about
when can I buom a Lamborghini tomorrow
how can I buy my Lamborghini next year
how can I have the nice stuff now and
this then becomes a different question
we're turning to these investment
long-term investment vehicles to make us
rich next month as opposed to actually
doing what it's supposed to do which is
make us rich over the long term we're
doing trying to do it the wrong way so
now we got to flip the question if these
types of Investments are there to make
us rich for the long term how can we
make more money today and so this is
where people turn to things like trading
oh I can flip these stocks I can flip
these houses I can do whatever to try to
make a lot of money right now and for
some it might work in the short term but
it is very difficult over the long term
and this goes back to what you were
saying regarding something like
entrepreneurship this is more of an
income issue because now we're trying to
create an income through trading now if
you are a full-time Trader you have the
systems you have the tools this is all
you do maybe it works for you but for
the vast majority of regular people it
is not going to work and this is where
now something like you know just like
entrepreneurship it's not going to work
for the majority of people majority of
people are not meant to be entrepreneurs
but you have to start asking the
question of how can you increase your
income if you want to have that better
lifestyle but now I want to caution that
a little bit more too because you know
we talked in my our previous interview
about Building Systems how to become
financially smart this is where now one
of the simplest not easiest but simplest
ways to become wealthier faster is when
you increase your income to not increase
your
expenses and so the best way for me to
give an example of this is if you ask
the majority of people what's causing
your financial issues the majority of
people are going to say it's an income
problem if I just made an extra $10,000
I'd be able to put money aside for my
investments I'll be able to do this I'll
be able to do that I'll be able to do so
many other things but what data has
showed us is for the vast majority of
these people is when you make that extra
money what happens your expenses go up
right with your income now you got to
buy a new car that matches your new
income you got to go on a vacation you
got to celebrate you got to go out you
got to you got to live this lifestyle
that matches your income so instead of
doing that create a system that flows no
matter how much money you're making and
one of the simplest things that you can
do is follow something like a
75151 plan which means that for every
dollar that you earn from now on 75
cents is the maximum you can spend 15
cents is the minimum that you're
investing putting aside for Investments
10 cents is the minimum that you're
putting aside for your savings so now
whether you're making 40 Grand a year or
$4 million a year it doesn't matter
you're still following the same system
where it's just a percentage based off
how much money you're earning and the
only thing that you're going to change
is your savings because you don't want
to save your money forever you want to
save your money for three reasons save
your money for an emergency save your
money for a big purchase like you want
to buy a home or a car or save your
money for an investment if you're not
saving your money for one of these three
reasons don't be saving your money now
when we talk about saving your money for
an emercy that's a bold statement yeah
that's a bold statement there's no other
reason to save your money cuz now you're
just saving your money we're going to
have to get into inflation otherwise
people are going to derail but I also Le
let's start there so why why not save
that's all I was taught as a kid save
save save me too so I grew up in a
traditional Indian house where the whole
idea of plan and becoming wealth this is
for me was become a doctor why because
doctors have a big status and doctors
have a big salary now when you make this
big salary what is the plan to become
wealthy not by investing not by doing
some fancy stuff it's by saving your
money have a big bank account so live
small live off of ideally 20 to 30% of
your income save the other 70% and that
might sound extreme but this is the
reality of what a healthy Financial
household looks like for a Indian doctor
was it for emergencies like what what is
the purpose of saving in in that
particular mindset so it's not for
emergencies it's literally just to build
up a big savings account to pass on your
kids to pass on to build wealth so
to be wealthy and live in a shoe box
like what is the is there like are are
they ever articulating why you're doing
it like for my if my mom if I had
pressed her what would she have said you
never know when you're going to need it
uh that's the only way to get rich she
would have said something like that but
if I had then pushed farther and said
okay what what's the point of being rich
well then you can do this that and the
other well not if I'm saving forever I
can't so if we I think it has to do with
the times that somebody grew up in so
this save heavy culture is a big
byproduct of my parents culture people
who grew up uh were born in the 60s uh
especially in India so now if you look
at that time frame where you look at
before 1970 in India it was a very tough
time where poverty was very
common most people were poor see that I
get that's a protection against I don't
ever want to be hungry I don't want my
kids to be hungry but that mindset
hasn't gone away and so it just kind of
trickles down right you you see what you
know because I personally many of my
friends are doctors many of my friends
make a lot of money many of these people
also have zero Investments and have huge
bank accounts because then you're beaten
away from this idea of doing something
risky like investing your money
investing your money is dangerous it's
bad like when I I mean I when I wanted
to invest in real estate nobody in my
family had ever heard of this concept of
real estate investing either had I
nobody I knew was an investor so I told
my dad dad I want to invest in real
estate I found this condo for $8,000 I
want to rent it out blah blah blah blah
blah my dad's response was you are
stupid go become a doctor go do
something
worthwhile and you know he said it on
love I love my dad interesting but did
he really say worthwhile yeah
yeah now I could the reason why my dad
said was that extreme about it is you
know Indian parents have this thing
where they like to create stories to
scare someone away from doing something
and so you know his whole thing was oh
uh what happens if your tenant doesn't
pay you what happens if you go to your
tenant's door and then they shoot you
because they don't want to pay you that
escalated quickly I mean this this was
the example that he gave me and so it's
just it it's just you start creating all
these fears where it's like if you
invest in real estate you might
die and that's supposed to scare you
from not doing it it's one of those
things where it's this lack of Financial
education lack of ever experiencing it
because you don't know that it's
possible you don't know anybody doing it
you don't know anybody that looks like
you doing it you're you're still new in
this country how are you supposed to go
UND do it it's it's just very scary
where this is the safe thing is just
saving
money if you save 100 Grand today and
you look at your bank account a year
from now it's still going to be 100
Grand maybe a couple extra pennies if
your bank is giving you some interest
but you know that's it if you invest why
isn't that the best idea idea ever my
wife Lisa struggled profoundly with her
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get the $110 off well going back to what
you said inflation
inflation by definition is deluding the
buying power of your dollar so what I
thought this was a fundamental law of
nature let's it's really human
intervention yeah it it really is
inflation comes from the word inflate
what are you inflating when you have
inflation and it's funny if you've been
watching some of your content or my
content you know that it's you're
inflating the monetary Supply when you
increase amount of dollars out there
without increasing the amount of wealth
the value of each individual dollar goes
down you just broke brains how do you
increase money without increasing wealth
so if I just print money the Federal
Reserve Bank who which is the central
banking system of the United States they
have the the ability to print money they
can increase the amount of physical
dollars out there or increase the amount
of currency through digital things so
the amount of money in circulation they
can increase this and so if we go to a
very basic example if we live on a
hypothetical world where there's me you
and three other people and each one of
us us five have $20 each and that's it
we're each equally owners of 20% of this
world's wealth for what happens now if
this new alien government comes in and
then they magically gave us $20 more
each are you going to be 20 you know
double as wealthy as you were before you
might feel like you are for a minute
because you see oh my God I have $40
there's only $100 in this world I have
40 now and then you go and talk to your
friends and you go shopping and you
realize oh everybody has $40 so now all
of a sudden the price of anything you
want to buy is going to be double
because you've increased the amount of
currency in this case
without increasing the actual wealth and
so this is where you kind of have to
differentiate currency from money
because you have to kind of Define what
money is because money can can have a
couple different definitions it can be a
store of value or it can be a means of
exchange and what I mean by that is
money as a store of value if you look at
physical gold for example gold is your
traditional store of value because it
takes time effort and labor to mine pH
physical gold so that time effort and
labor is represented through a physical
gold bar and that is the value the
physical gold now if we compare that to
something like our paper dollars it's
very easy to transact with it's a very
good means of exchange gold is difficult
to transact with if I wanted to go to
McDonald's and buy something with some
gold it's going to be very hard to do
that versus with dollars it's very easy
to exchange
however it can be easily manipulated
because the Federal Reserve Bank can
print money essentially on command so
they can increase the amount of dollars
out there which decreases the value of
each individual dollar so while our
dollars serve as a very good means of
exchange it's not a very good store of
value this is where now what wealthy
people do is they want real money they
want something that's not only going to
store their value but also hopefully
increase in value this is what assets do
if you look at we hope we hope right
there there you invest in assets for the
purpose of making money how does it make
money by increasing the amount of value
that it provides when you invest in a
company or ETF or anything you want to
invest in something that you believe
will be more valuable in the future if
you didn't believe that you wouldn't put
your money in there how is it going to
become more valuable how is McDonald's
or Amazon going to become more valuable
their goal is to produce more value to
create something new that will provide
more value to more customers and then
their value is represented through
Revenue through profits through money so
you're investing in something that you
believe believe will produce more value
same with real estate you want to invest
in an area that you believe will be a
more desirable area because if you
invest in an area where businesses are
moving too where people are moving to
where jobs are moving too uh you own
that land you own that property you own
that building that is now more valuable
because more people want to be here and
now that is represented through money
through this currency where now more
people want to be there so now rents are
higher property values are higher
this is why this stuff gets complicated
and why people turn their brains off
because for instance if you pick the
wrong neighborhood you can lose your ass
right and this is where ETFs index funds
become very interesting to use real
estate as an example I personally
because I recognize how ignorant I am I
would much rather be investing in a
whole bunch of neighborhoods across not
only this country other countries
because I don't know which one's going
to pop off yeah right so because there
is so much uncertainty it's like as you
spread that out now but to your point
you're limiting your upside but you're
limiting your downside right that to me
is far wiser you're never going to you
don't become the next rid alio by doing
that so you're not going to turn into a
billionaire but when you think like when
Ray alio was pressed like what would you
do like if you could only leave a set of
instructions to your kids about what to
do with their money you couldn't
actively manage it for them you couldn't
have your do it you just had to give
them instructions and he came up with
what he called the all weather fund yes
and so it's just like H I don't know
what's going to happen so here's like
the diversification that you should put
it across and you're not going to make
as much money but you're not going to
lose a bunch of money either exactly and
so all of this stuff is so freakishly
complicated that even better it is so
easy to be wrong and so hard to be right
that your odds of getting it right
consistently enough because it's to your
point about the monkey if you looked at
it in six months monkey probably loses
you look at it in 12 months monkey
probably loses 18 months probably loses
two years maybe loses three years though
it starts to be like all bets are off
and by the time you get to 10 years it's
like the monkeyy winning just because
you just left it alone instead of
thinking that you could outsmart the
scenario and Warren Buffett did a very
similar bet against uh some major hedge
funds on Wall Street and what he bet it
was a $1 million bet that the winner
would give a million dollars and then
they would go to charity and his bet was
that the average person would be better
off by investing their money into a
lowcost Index Fund as opposed to
actively managing their money actively
trading their money like the hedge funds
were doing over the long term over a
10-year period and what happened was
exactly what you said in the beginning
the hedge funds were crushing the index
fund uh the the the index fund was down
hedge funds are going up not because
they were able to find these trades and
make all this money in the short term
and the media was asking waren Buffett
how do you feel about it he said the 10
years are not up yet yeah and then come
your 10 well then we had some swings on
the market some hedge funds had some
losses you took out their fees which is
also a big chunk of it after factoring
in the fees and all that other stuff the
index fo won and what did he do he just
put his money into it set back and
didn't do anything verus the hedge funds
are spending all their time managing the
money trying to beat the markets and
they did for a little bit but then over
the long term they didn't and then when
you factor in their fees for spending
all that time trying to beat the market
now your returns are less than if you
just put your money into the market and
didn't have to do a thing yeah and so
this is that basic Financial education
where it's not as Attractive people want
to be able to show off like it's just
like people would rather look rich than
actually be rich and you would say oh no
I would rather be rich well people's
actions speak louder than the words
because if that's true you should not
have a Gucci belt if you don't have that
same amount of money in the market you
should not own a BMW if you do not own
any Investment Portfolio right I mean
it's just it's just a matter of looking
at what you do does it m match with what
you actually want if you want to become
wealthy question answers yes okay what
are you willing to sacrifice you have a
BMW in the driveway you got the Gucci
belt you have the Louis Vuitton if you
have this nice stuff but you don't have
the nice assets your priorities are in
the wrong place and this is just a
matter of you looking at yourself in the
mirror and being honest with yourself
and understanding what you want and for
a lot of people more you know maybe this
is a matter of financial education maybe
this is a matter of preference but many
people would rather look rich than be
rich if we just look at you know what it
is now if you dive a little bit deeper
are the people that want to actually be
rich we want to be rich today we want to
be rich tomorrow not be rich in 5 10
years and so what then what does that do
it then drives our actions so it's very
difficult now to to understand that hey
I'm willing to sacrifice not only the
nice stuff today but then also not do
the attractive the sexy the things that
that are hot that are making people so
much money today because I believe in
this long-term investment that has been
time tested because it's so boring but
the reality is that boring is where the
real wealth is built dud facts I always
tell people boredom kills more
entrepreneurs kills more dreams than
fear or failure it's it's The Daily
Grind like when to your point about
watching candles
when crypto was really popping off I had
to stop myself from watching it because
it was so fun and so exciting and I was
like you can't spend time there because
I'm I'm not going to want to watch it
when it's down so it's like you want to
system you want to set it you want to
forget it yeah and the if I could get
people to understand the psychology of
how money impacts you like oh my God to
your point about people would rather
look rich than actually be rich Rich
when you think about what money really
does for you you have to understand Peak
emotion there's only so much emotional
amplitude that you can have in fact do
you do you have an image in your mind of
the highest
emotional amplitude moment of your life
as it where I felt the most emotion yeah
the the highest positive emotion you've
ever felt positive emotion that's a
tough positive for sure you know it's
funny um my wife used to get really
upset at me because I never showed
emotion and she was like what's wrong
with you like you're never like you
never get excited you never sad I'm like
look the only real emotion that I feel
is hunger I get hungry uh I've changed
that's what a woman wants to hear by if
you said hungry for you baby that's the
only thing I ever feel you might have a
shot yeah get I've evolved since then
where you know I'm working on that you
know uh but I think you know the
happiest is really for me being around
my family and the people closest to me
and just laughing yes that is my
favorite thing in the world like what do
I want I literally want my friends and
my family in one room and us just joking
around because I you know we we make fun
of each other and it's not in a mean way
it's just the you know our personalities
when we laugh and have fun that is if I
could think of my favorite thing to do
would be that maybe if you want to take
it one step further maybe do it on a
beach but you know it's it's honestly it
doesn't matter where we are you're in my
basement eating some whatever Pizza some
Indian food and and just laughing do you
think the game of money is too complex
for the average person to ever win this
is what I think is happening to the
middle class it's just too complicated
and unless the uh I'll I'll expand on
that the reason that we've created rich
and poor is because of the fact that the
way that we're getting money into the
economy is by buying assets to buy
assets you really have to understand an
obscenely comp liated game and most
people don't understand that game and so
they just say I'm just going to go work
and I'm going to earn a paycheck and I'm
going to I know how to live paycheck to
paycheck it's not ideal but like I get
by and I have fun and I'm able to raise
my kids and all is well well even most
people aren't not most people but fewer
and fewer people are having kids now and
so we're simplifying the game we're
collecting a paycheck we're um
entertaining ourselves for reasonable
amounts of money Amazon's helping make
like your average stuff cheap so people
don't really have like a big incentive
especially in an era where the rates
were just declining and so debt
basically was pretty easy to get a hold
of goods are getting cheaper and cheaper
so I don't have to Tony Robbins money
Master the game I just play the game of
going and getting a paycheck and now all
is well but the way money Finds Its way
into the system in an era where we have
to like inflate inflate inflate is only
going to people that hold assets I don't
think that is too complex but I think
the first issue is Comfort is one of the
biggest drugs in the society and we many
people are Comfort I'm gonna back you up
before we get to
comfort I think it's so complex you
sound crazy so that means I think you're
carving out a small piece of the money
world and saying just focus on this
piece what's this piece then look money
at its core is very simple just like how
Fitness at its core is relatively simple
in the fitness world it's
C it's eat less work out more to live a
healthy lifestyle in the financial World
spend less than what you make invest the
difference in what and and this is where
it can be as simple as you put your
money into the S&P 500 now I'll explain
what that means because it's going to
sound very complicated if you've never
been exposed to the money S&P 500
literally all that means is the 500
biggest companies in the stock market
historically the S&P 500 has grown by 7
to 10% a year on average over almost the
last century which means if you took you
know $100 a month and that's all you did
you didn't look for the next Google the
next Amazon you didn't try to find real
estate Investments you didn't try to do
anything complex all you did you had a
system and you just put your money into
that fund a fund that gives you exposure
to the S&P 500 and you did nothing else
and you even automated it so you don't
have to do it manually because there's
brokerages out there that do that for
you if it was just completely automated
and you never looked at an individual
stock you never touched your Investment
Portfolio and all you did was spend less
than what you make and you just invested
$100 a month you would have retired a
millionaire with $100 a month
investment so now what do we do we like
to complicate it we like to say man this
doc looks hot get into this Doc before
it pops off should we short this doc
should I do options should I go and do
this or should I do that should I you
know and and we start trying to play
this game think because now we start to
get into the whole idea of this is fun
this is attractive how can I make more
money gambling at that and for a lot of
people it becomes gambling and this is
we're now understanding
investing versus everything else
investing look spend less than what you
make okay if you're making $25,000 a
year $250,000 a year or $2.5 million a
year it doesn't matter spend less than
what you make and you know it doesn't
matter how much money you make it start
with the mindset thing there's a reason
why you've seen so many athletes make
millions and end up bankrupt I think
it's like almost 8 out of 10 NFL players
and a broker bankrupt within 5 years of
them leaving the NFL okay it's not just
a money thing there's we talked about
six out of 10 Millennials making over
100 Grand a year are broke and there's a
a crazy high number I'm going to say
around 50% I don't remember the exact
number but of people making over 250
Grand a year that are also paycheck to
paycheck it starts here spend less than
what you make live smaller smaller
apartment smaller car for a little while
have some extra cash now what do you do
with that you can save some and you
invest some where can this money be
invested I gave the example of the S&P
500 how do you put your money into it
well in the stock market you can look at
something like spy Spy is a ticker
symbol that gives the exposure to the
S&P 500 another one is vo I personally
am invested in vo that gives the
exposure to the S&P 500 so if you just
put your money in there historically you
would have seen 7 to 10% growth a year
if you say you know what I don't even
know what the S&P 500 is can't I just
put my money into the stock market vti
is an ETF meaning it's a fund that gives
you exposure to the entire stock market
it's a total us stock market fund so now
if you just put your money there now you
don't have to you're not investing in
Amazon or Google you're investing in all
the stocks Amazon Google you are
technically investing in Amazon Google
everything and so now it's
it's we can dumb it down to as simple as
you know just put a little bit of money
into these things and now you're just
going to meet the market you don't got
to worry about all the fancy stuff all
the fancy stuff is what generates all
the clicks and the excitement and the
fun and the noise and the you know
that's what gets all the headlines it's
also where people lose their money so
yeah getting to getting to someone like
Ray doio and a huge hedge fund those
guys are going to time the market those
guys are going to to use Ai and hundreds
of millions of dollars in research and
all of that to stay ahead of the curve
Ray was the one that said to me he's
like man the problem is that they don't
understand how sophisticated we are and
you've got your average person on the
street that thinks that they're going to
beat us to the punch and he was like we
measure our trades in milliseconds we've
got AI we've got like they've got 1,800
employees or whatever and he's like the
odds of you beating us are effectively
zero so that puts people back into the
passive investing mode which is what
you're talking about okay I will say
that even that like you're so immersed
in it that you forget how complex even
that is like the ticker symbols people
are like what's a ticker yeah so and and
and so like you know I'm going to go
back to the conversation I had with the
guy um from Detroit recently where he
was had we had the same talk he was like
d i don't I I have no idea how to invest
in a stock where do I start and so now
you're right that can be daunting
because now you open up one of these
apps and they're going to ask you for
your bank information they're gonna ask
you for your social security information
which can be like overwhelming you're
you can be distrustful like who are
these people can I just say something
really fast yeah in high school I was
taught calculus but not about the stock
market that's
crazy you and me
both I had look I didn't know what the
word dividend meant I didn't know what
passive income was I didn't know what
wealth meant I had no idea what these
things were until I started reading
books and we all live in a bubble each
one of us every single person lives in a
bubble and until you get yourself out of
that bubble you don't realize how big
the world is and how many different
things there are like when I broke this
bubble and started learning about money
I mean I I become obsessed with things
like I started just like I couldn't stop
learning and it blew my mind how much I
didn't know and then you know I started
learning about Fitness and Nutrition I'm
like oh my God so stuff I didn't know
and I started learning about
spirituality what this is all the stuff
that I had never learned about before
there's a world of things out there and
when you think you know something I can
pretty sure like guarantee you that you
don't know it like the more you learn
the more you realize you don't know and
so like when we talk about okay how do
you now make your first stock market
investment there are apps out there that
will even do that for you like they will
just like they will just ask you how
aggressive do you want to be with your
Investments a little bit medium a lot
and then it connects to their bank
account and then it just invests it for
you but I think the biggest the
psychology like the education part can
be learned Rel with a few YouTube videos
like if you devote yourself for let's
say 3 hours you can figure that out just
search it on YouTube Google there's a
bunch of content there the difficult
part which is not so easy to learn is
the psychology part because now if
you're getting started in the money game
and you start investing your money and
then you see markets go down and now you
see a portfolio in the red that's where
now most people will Panic freak out and
sell because you're like I was supposed
to get rich because of this I put in
$3,000 now it's down to $1,800 what the
heck
happened and this is where that
psychology is so important and that you
cannot learn as easily what should the
psychology be so here the great irony of
inves is the best advice anyone is ever
going to get is Buy Low and sell High
the thing that people are least able to
do is buy low and sell High the reason
is when the price is low everybody else
thinks it's terrible it's trash and so
now you have to believe in yourself and
your analysis of the data enough to go
okay it's the right play to do it now
even though every the price being low
means everyone thinks it's trash and so
you've got to buy it when everyone else
thinks it's trash and then as the price
goes up then you have to think it's not
going to go up forever and so I'm
actually going to take some wins I
watched this happened with crypto it was
surreal I had never paid attention to
the markets before so I didn't
understand what Euphoria looked like and
so everyone was just like it's going to
go up forever nothing bad could ever
happen and they were buying in at the
high and then as soon as the price
started dropping and look Michael sailor
may end up looking the fool but what he
tried to tell everybody was any
increment of time less than four years
in Bitcoin is just noise don't do it and
people still sold like [ __ ] crazy and
so so yeah getting people to buy low and
sell high is already the most difficult
thing so if that's the wrong
psychological approach what's the right
approach how do you build the resilience
so on the first kind of basic level it's
when things are going around if you're
investing in the funds like I talked
about if you look at history we have
seen recessions and Market crashes
happen almost every decade which means
you see boom boom boom ups and downs and
ups and downs and ups and downs and the
people that make the money are not the
people that sell at the bottom is there
a long Arc so if we're going up and down
is the market just y realize as it's
going up don't buy because you know it's
going to crash seven years later buy
when it crashes write it up sell it'll
crash again or is it like up and down
but with this trajectory for those
watching I'm raising my hand up and to
the right yeah um listening I should
have said uh so is is there like you
know over the last 100 years has it
returned 7 to 10% because it's actually
gone up in value or including the
recessions and crashes the markets have
gone up a 7 to 10% a year on average and
so and is that due to an increase in
productivity of companies like people
are actually spending more is a birth
rate like how is it possible that it
could keep going up like does at some
point yeah doesn't even the long Arc
have to go we this isn't sustainable so
so there that's a good question and it's
actually probably a more complex
question that uh than you might be
thinking because it's yes and more so
what I mean by that is okay if you
bought before the before at the peak of
the 2008 crash if you bought before
everything
tanked and you held on you would still
assuming you invested into funds not
individual companies that been bankrupt
if you invested into the market like the
S&P like the S&P 500 you would be richer
today than then buy if you held on so
the psychology is now you hold on and
buy more when things go down assuming
you're investing into funds if you're
investing in individual assets that then
the research and Analysis is completely
different because you want to make sure
you're not buying your way into
bankruptcy so now the question is why
does the market go up well the first
part is value creation right Amazon is
working every day to increase how much
value that they're putting out they're
working to create new products they're
working to make buying online better
they're working to increase efficiency
and I'm going to talk about efficiency
in a second because that gets into like
artificial intelligence and reducing
costs and things like that in addition
to that so you have company every single
Company's trying to do this if your
company's not trying to do this they're
they're dying every single Company's
trying to produce more value make more
money create a better product but in
addition to that it goes back to
everything that we just talked about why
does inflation happen you know the FED
says our goal is 2% inflation why why
why not 0% why not negative inflation
because that would make things cheaper
right and so now understanding well why
does inflation happen if you look at our
economic system and this is where again
Financial education is so
important 2% inflation is just enough
inflation that most regular people don't
notice it it doesn't mean that it
doesn't happen it's just enough but why
do we want it and and so I'm going to
get to that so it's just enough that
most people don't notice it but why does
it continue to happen because what is
inflation it increases the amount of
dollars out there right increases the
monetary Supply more dollars me more
money to spend more money to spend means
you got more money to go to Chipotle
that's why over the last 50 years we
have seen the prices of things steadily
increase $100 in 1970 could buy you way
more than $100 today I'm not sure that's
quite true
so here's how I've always thought of
inflation and the reason that we want a
little of inflation is that
if it I'll call it the uh Bitcoin Pizza
problem so Bitcoin is a finite Supply
which means that it will you'll never be
able to inflate it now it can still lose
value obviously we've seen that and can
go up in value we've seen that but if if
the cost if the value of Bitcoin goes up
over time because it can't be inflated
then you could buy a pizza today this
happened to a guy he buys a pizza for
what 17 Bitcoin whatever and then that
17 Bitcoin goes on to be worth $200
million and it's like oh God like that
was a mistake I should have held on to
it so if money has a deflationary effect
meaning that if I have $1,000 today that
,000 tomorrow might have the buying
power of $2,000 today so it's like I'm
incentivized to hold it now if I'm
incentivized to hold my money there's no
velocity of money there's nothing moving
Goods aren't being bought and sold
people are just trying to hoard their
money and so even though people have
this money and it it's able to buy more
in the future the same, then I'm
incentivized to hold it whereas if it
goes down a little bit it loosens that
sense of well this isn't going to be
more valuable tomorrow so I'm never
going to look like a fool so I might as
well go get the thing that I really want
but why not 0% inflation then why does
the FED do that it's an excellent
question that doesn't increase the
economic system ites it doesn't increase
the size of the economic system mhm if
you want to is it really though so is
the only way to get inflation to print
because what I'm trying to reconcile in
my head is yes there's more money but
the price of things then just goes up
and so you're still only buying the same
amount so okay there's a couple aspects
of this when when inflation inflation by
its definition means you're inflating
the monetary Supply what the results in
is the value of the dollar dropping
which means so like for the government
example why does the government want
inflation because that means they can
pay back their debt I get why they want
because they're printing money right and
so the first aspect is they can continue
to pay back their debt with cheaper
dollars but then it's basically an extra
2% tax or whatever percent they get a
little bit of extra right that benefit
the second thing is they have more
spending ability it goes to increasing
the size of the economy because look our
a financially smart person is going to
make $50,000 a year
invest some of that save some of that
and spend some of that the government
doesn't work that way if the government
made 50 Grand they're going to spend all
50 and then an extra 10 and so how do
they do that well why well why do they
do that it's stimulative it's it it
grows the economy when the government
spends money what does that mean well if
the government spends money let's just
say infrastructure they're paying
contractors they're paying a company
more money is entering the economic
system so as inflation happens when the
government spends more money more money
is coming into the economy and so what
does that do that grows the economic
system at a cost the value of the dollar
goes down and so our system we have
companies right the economy you have
investors who own a piece of the economy
and you have consumers every single
person is a consumer Rich poor middle
class businesses every single person is
a consumer but most people stop there
most people are just consumers investors
own a piece of the economy now the
Federal Reserve Bank you have kind of
over here they're working to increase
our economic system they want to grow
the system they want to grow the economy
how do you do that you increase how much
money comes into the economy you
increase consumer spending ability how
do you do that increase how much money
is out there and so if consumers are
spending money well how can you increase
how much they spend you can give them
more money to spend and if more money
keeps flowing into the economy there's
more dollars in there that can be
flowing through the economic system
which then will benefit the economy
because I mean businesses can get more
money because there's more dollars out
there if businesses are getting more
dollars the investors also benefit
because now businesses show uh more
Revenue more profits sure the value of
the dollar has gone down slightly but on
a nominal level there's more dollars
more wealth more money accumulated here
this is why inflation is so important to
understand because consumers don't
benefit from inflation sure maybe can
buy more stuff if more money comes and
if you get more dollars but consumers
now have to pay for things with a
deflated dollar but in my crazy you get
2% more dollars but things cost 2%
more sort of that would be in a perfect
world in a vacuum but it's roughly that
right I mean this really is a tax this
is the government getting the ability to
spend 2% more money it is 100% to tax
but it is look
inflation has been around 2% a year
historically or 3% historically but does
that mean that the monetary supply has
increased by 3% a year no the the amount
of dollars out there has increased way
faster and this is the big argument that
people say that spending money does not
cause inflation this is the big argument
here because if you look at the 2008
spending money or the government well
spending more money than they have so
printing uh and spending how often are
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code with the 2008 crash happened and we
started the unleashing the quantitative
easing we started opening up the money
printer and money is flooding our
economy uh you had some people saying
this is going to cause inflation but we
never really saw a Title Wave of
inflation after the 2008 crash inflation
never really saw a big spike at all like
it was pretty contained around like the
3% Mark and so now we had everybody
saying hey look money printing doesn't
cause inflation we can print as much
money as we want we saw inflation at
around 3% but our monetary Supply didn't
increase by 3% it was way more than that
I have a hypothesis I'll be curious to
see if I'm going in the right direction
here sure the money printing that they
did though was just to keep people from
losing their homes so they printed the
let's say roughly exact amount of money
they needed to print in order to keep
things status
quo well it's you that's that's a the
government
cannot predict how much money will be
needed in order to do that they they
sent out stimulus checks in order to
stimulate the economy during the 2008
crash what is a stimulus check intended
to do it is intend stimulate the economy
but we assume that it's intended to cons
to stimulate the individual
the individual is a consumer so if you
get a $2,000 check what does that do
maybe you can make one month of mortgage
payment but what what people doing
they're going out and spending it
stimulates the economy it gets the
economy moving again businesses start
making money again and so more money
that's really dark so I I'm hold on I
might be misinterpreting this but that
could be really dark so let me say what
it sounds like happened in 2008
I just lost my home brutal gut punch I'm
living in a tent this is so gnarly oh my
God I get my $2,000 stimy check and I
just go buy the normal things that I
would buy but maybe this goes back to
your initial statement I I'm I'm buying
food that the vast majority of the
things that I buy are going to be my
Main Stays so I'm it's not like I go out
and buy a new truck I'm going to go out
and buy my eggs and uh you go see a
movie or two maybe go out to dinner or
something like that but that's really
what it sounds like if they can pour
that much money into the system and
inflation doesn't go up then people
spending
habits roughly would stay the same
unless somehow that money went into the
system and it created
additional
productivity so that the there wasn't
people fting for the same number of
items the number of items actually went
up and so the price of everything stayed
the same that what you said makes that
prediction so
okay the government if the government
sent out $2,000 stimulus checks and
everybody put that money in their
savings account and didn't spend it yep
it wouldn't grow the economy correct
that's not what the government wants
they want you to spend that money it's a
way to encourage spending because we are
a consumer people should have saved that
money let's be very clear clear unless
they need it to eat so I'm talking about
what the government intends people
should invest a piece of their money
save a piece of their money yeah but I'm
trying to speak to human behavior is
does the government understand just the
ugly truth is is what I just said true
100% look the government knows we're a
consumer Nation like it's not just the
US like the the whole world knows the
United States is a consumer Nation
people here spend more than what we make
so like cuz you talked about the
inflation issue in 2008 I wanted to
expand on that a little bit
because money isn't just money like our
we have two types of money in our
economic system we have actual money and
then we have credit people don't spend
based off of how much money I have in my
bank account they spend based off how
much debt I can qualify for so if I have
$100 in my bank I can still spend
$500 and what happened in
2008 is first credit levels fell because
now if I have so I couldn't even get
credit I couldn't get credit because if
my income goes down I lose my job I'm no
longer credit worthy to a bank banks are
not going to want to loow me money so
before I had $100 in my bank but $600
worth of spending ability because I
could have let's just say got a $500
loan or credit line or whatever now can
I ask you a question keep keep where
where you were going but I need to
understand something so fractional
Reserve banking I understand how that
works so when you go for a home mortgage
they don't have to have that whole price
it's like only whatever 10% but how do
credit cards work are they able to
create debt out of thin air in the same
way that a bank does or are they do they
have actual onetoone reserves so let
let's highlight this that we can get to
credit card companies about that too so
I have the spending ability of $600 500
is a loone $100 is actual cash in my
bank money yep I lose my job like
everybody else now I lost $500 with the
spending ability I only have 100 my
spending ability crashes then come the
stimulus checks as a way to stimulate
now I have $100 of money and then $2,000
from the government now I have $2,100
now I can go out and start spending
again I start spending again businesses
start making more money there's more
dollars in the economy and then I get
another job and now I go from a spending
ability of $100 because I already spent
the two grand back to $600 so now
there's more money out there and the
credit starts to go up but the inflation
never really happened like we never saw
it really pass
through and now we're seeing the effects
of the inflation I forgot the delayed oh
100% like it's what we were trying to
figure out to reorient was in 2008
housing crash stimulate the hell out of
the economy pump a bunch of money in but
inflation doesn't go up I then had a
hypothesis about why which is very
gloomy yeah and so now you know you said
was it delayed you know I think we
talked about this previously where if I
took a dose of heroin to today I'm not
going to die and I might like it and I
might say okay let's do another one and
but to keep chasing that high I might
keep increasing my dose now if I keep
increasing my dose but nothing bad
happens to me does that mean that it's
bad for me or good for me well nothing
bad happened yet but eventually right
you're going to h a point we know
scientifically that if you keep
increasing it your odds of something bad
happening keep increasing well what are
we seeing now in the money World in 2008
we printed a lot of money we didn't see
the full side effects of the heroin we
didn't see the full effect the pain of
the inflation we did it again in
2001 now what we're starting to see
happen is over the previous Decades of
money printing over spending we're
starting to see the side effects of it
and now the question is what are we
going to do are we going to just shoot
up again and try to delay the real
effects of it and just like okay calm
the withdrawal symptoms or are we going
to actually solve the issue and fighting
an addiction is painful you want to get
off of a drug addiction you're going to
have to go through pain and to get back
out of analogy and into what we're
talking about that's spend less money
spend less money from the government and
that means people have less stuff that
means less government spending
that means more saving less spending and
that is painful especially when you're
accustomed to having the nice stuff and
being able to buy whatever you want that
causes Financial pain people lose jobs
that causes economic pain businesses go
under and that is like we don't nobody
wants to see that pain but the
unfortunate reality is now because of
the inflation problem if you want to
solve inflation
you're going to have to go through that
pain and what the Federal Reserve Bank
is saying is we want to solve the
problem without enduring the pain we
want to get off of the heroin without
having the withdrawal symptoms well
unless you have some fairy dust where
you can do that sure but withdrawal
symptoms are often a byproduct of trying
to leave a drug that you're addicted to
in the money world trying to get off of
the inflation high
is has the side effect of economic pain
and now this is what everyone's saying
that we can avoid but what I'm saying is
be prepared that way if we do see more
economic pain that you can protect
yourself and not just protect but also
capitalize on opportunities that might
come your way and so you know we've had
a lot of kind of buildup and this is
where now understanding look we are
starting to see some effects of this and
over the next you know decade we're
going to see a lot of things change we
have a lot of corporate debt a lot of
national debt a lot of household debt as
interest if interest rates continue to
rise it's going to cause pain now we
could shoot up again the FED could cut
interest rates and start stimulating and
they kind of get the economy going again
but then that makes the inflation
problem worse do you know the Wall
Street Trapper I do I've Sav his videos
with you dude he's so dope so he talks
about if I'm going to wear it I'm gonna
own it yeah so if I'm GNA wear Louis
Vuitton then I'm gonna own Louis Vuitton
stock yeah and Ah that's so smart like
just here's the like I know know what
this video would have sounded like to me
if this was the first video I
encountered it's it's so heady it's just
like oh my God these ideas are so
complicated right
so going off of what you're saying let's
give people a waypoint here just to help
them anchor so we've got a few really
important ideas so one there's a saying
the hidden tax as you call it which I
love that idea so you've got inflation
now the government is trying to help you
I'm not even going to say that there's
anything Sinister they really were just
doing their best we got hit by the
pandemic who the hell knew what the way
out was going to be they work with the
FED they pump just a lot of money into
the system so we end up having what was
looking to be the greatest Global
depression since the Great Depression in
1929 but it only lasts for two months
because we end up injecting all this
money into the system right so cool the
catch is that the way to get that into
the system it can be give people money
directly which they did but the people
that really need it they're going to buy
groceries so it doesn't they're they're
still trading time for money in essence
right because they haven't broken that
cycle if the government's not giving
them money they don't have anything then
you've got people I'm talking averages
here you've got the middle class they're
going to Louis Vuitton oh word like I've
already got my groceries taken care of
so now I can go buy that handbag that I
want to do a little Instagram flexing
whatever right so they didn't help
themselves out but then you've got the
wealthy or the the educated that's
probably a better way to think about it
you've got the financially educated
because they're educated they owned
assets already which is the easiest way
the traditional way for the fed and the
government to pump money into the system
is to buy assets so they're going to buy
these bonds just to keep it really
simple this is overly simplified but
they are buying these bonds so now
you've got people like me who was not a
good investor but I can afford a money
manager and so the money manager is like
yo you need bonds not now this was
before so I buy the bond so hey now I'm
backed by the government because they
know that they can print money out of
thin air so now I'm getting this return
on my money my money's protected instead
of being deflated they're buying my
assets so now I want people to know the
wealthy some of them myself because I'm
I was not financially educated as of two
years ago I'm only just now getting that
way so I've been a good entrepreneur a
bad investor but because of that like
the system is I'm learning about it by
asking all these dumb questions and I'm
really seeing how it works so it's not
like I I was doing something nefarious
for me to get richer during this time
time it was just like oh I need assets
break the time for money equation I've
got all this risky money in building my
business I wanted a more sure thing so
then the bad thing happens my sure thing
gets taken care of by the government and
now it's like oh it looks like you know
the rich are getting richer it's just
education so now getting into money
habits the other thing that you talked
about is while your friends were
spending their money at a party you're
spending money on building a business
right like that fundamental difference
of spending it on fun [ __ ] that goes
away or equity in this case your own
company is a world of difference yeah so
I just want to Anchor everybody back
around to those like money habits you've
got what all my mom would have called
pissing money away right literally an
alcohol you're just pissing that money
away um or putting it into something
that's going to go to work for you in
your case it was a business it was real
estate yeah if people can just grab that
fundamental difference like of hey start
thinking about the world in this
different way they're going to be a huge
step forward and it's all a learning
process because I don't drink I don't
smoke I never drink but for me it was
the only it was it was a hustle right it
it was the only way that I knew to kind
of start making some money um and so it
is how you start and you learn and each
one of the things that you kind of do
you're going to learn something new and
you're going to be able to apply that to
the next thing and it really is that
shift you know I call it the minority
mindset thinking differently than the
majority of people because it's it's
doing something different most of us are
taught just to be consumers trade time
for money go buy cool things to flex
exactly and that's it we're never taught
to do anything else and I mean think
about the last time your teachers taught
you about the importance of investing
your money of they don't know how to do
it either exactly they couldn't hope to
teach me and and so that's where you
have to be willing to go out of your way
to learn how some of these things work
because if you don't you're just going
to be a in the system and it's very
unfortunate it sucks and you know this
is where I'm trying to help provide that
education because these are things I
never grew up learning these are things
that I wish somebody would have told me
uh you know I've see it I see it in so
many
people I used to guest teach in Detroit
public schools whoa and you know these
are good kids from rough areas a lot of
times don't have two parents in the home
sometimes don't even have a parent in
the home there were some kids he didn't
have or his mom is not around he was R
raised by a gang uh just because there's
no parents and so they provided him
shelter and it's crazy
because you get stuck into a system a
cycle because you don't have any way of
learning or seeing anything else and you
know like one of the first times I was
there I asked the kids how many of you
guys have a job most of them rais their
hand most of them have an income and
they're in high school right they're
going to school and they're working and
next question is how many you have a
bank account nobody not a single person
had a bank account Jesus man so I was
like what so how do you guys what do you
do with your money so we get a check we
go to the liquor store we cash the check
now the liquor store owner is going to
take you know 1 to 10% of that check oh
God and then what are you going to do
you're going to buy candy you're going
to buy pop you're going to buy a bunch
of dumb stuff on your way out and now
you're left with only half of your check
and now what do you do is it's this I
like to call it Net Zero thinking where
if I have cash I need to spend it I have
$500 in my bank account I got to make
that zero if I have a $1,000 I got to
spend it because we think oh my God if I
had 10 grand I would go on this nice
vacation if I had 50 Grand I would buy
this car we think in terms of it's that
consumer mindset of if I have this money
I need to spend it but this is where we
have to break out of that and understand
what can we do differently and instead
of just spending all of this money and
it's much more difficult now because of
the higher cost of living but it's so
much more important now than ever where
you got to create this margin I call it
like an equation where you know your
your wealth is really you you take your
income minus your expenses and that's
equal to your Investments plus your
savings so you take your income whatever
money you make you subtract your
expenses your houses your your home your
clothes your car whatever your expenses
are and if you have some money left
either this money is going to be saved
or it's going to be invested well if you
have some money left you're already you
know doing something that a lot of
people are not doing you're more than
the majority of people right now I just
read a study yesterday seven out of 10
Americans across the board are living
paycheck to to paycheck 50% of Americans
that are making $250,000 a year are
living paycheck to paycheck that's crazy
it's not how much money you make it's
what you do with the money you make that
is so important and so now if you have a
buffer you're already better than the
majority of people now the question is
what do you do with it well we're taught
save it save all of it so your
Investments are zero and your savings
you're trying to grow that thinking that
you're trying to you're going to become
wealthy but you're never going to be
able to outsave inflation you're going
to savings are literally making you
poorer each and every day however you
don't want to just not save any money
you got to be strategic with it what I
like to say is there are three reasons
why you should be saving money you save
money for an emergency have somewhere
between 3 to 12 months worth of expenses
depending on your risk tolerance save
money for a big purchase you want to buy
a car you want to buy a house you need
some cash to do that save money for an
investment if you're not saving money
for one of these three reasons you are
saving your money the wrong way and it's
making you poorer each and every day you
didn't say save for retirement yeah
invest for retirement you know you talk
about retirement the retir we're about
to face a a big retirement crisis
because traditionally retirement was
what people like to call a three-legged
stool you had your Social Security you
had your pension and then you had your
own Investments or your savings what a
lot of people like to do well pensions
are something you only read in history
books anymore they're a thing of the
past so those don't exist
anymore Social Security is running into
a very very very big dilemma because
right now if you are you know under the
age of 45 the Social Security money that
you're paying isn't going to go to fund
your social security income it's going
to fund somebody else to retire because
the Social Security program has much
bigger expenses than income and so it is
on the path of being completely dried up
of just running out of money is this
because the younger demographics are
just a smaller cohort than the older or
there's a lot of reasons for it it's how
the Social Security money is spent it's
it's how many people are requiring
Social Security money how long people
are living for how long these Social
Security checks have to go out for a lot
of bad calculations bad investing and so
in the Social Security fund is now
drying up and so now everyone says well
I'm not worried about it because the
government can just print more money and
do bigger Social Security checks that's
what we're seeing this year we saw
between 2021 and now the biggest Social
Security raise ever is between 5 and six
% something in that range which one is
already not keeping up with inflation so
yeah you got a bigger social security
check but oh no it's not buying you as
much as you could have last year but
then the second issue is just think
about that for a second if the
government is going to print more money
which means the FED is going to print
money give that to the government to
give you bigger Social Security checks
what does that mean you got a bigger
check great but now the cost of things
have grown even faster than the growth
of your check you cannot out print
inflation it it just creates more
inflation and so you know so you had the
pension that's that's essentially gone
for the vast majority of people Social
Security is not going to be able to fund
your retirement which leaves people with
the third stool which is your own
Investments now traditionally users oh
I'll save some money save 10% of your
income that's not going to do it your
savings are going to make you poor each
and every day and the second thing is
your
401k and you know it's a great start for
the average investor because now it is
like
automatic putting a little bit of money
into some Investments however your 401k
was never ever ever intended to be your
sole investment plan the founder of the
401K even came out and said that the
401K has gone a Ry it is a monster
because now so many people are hoping
that they're going to be able to rely on
their 401k to retire and that's not what
it's intended for and it will never be
able to be enough for you and so a lot
of people have this false hope that okay
yeah whatever Social Security will give
me a little bit extra but my 401k will
take care of but that was never the plan
and so now what does that mean your 401k
just think of that like as if you invest
in your 401k your IRA that is the
absolute base your savings are not going
to do it this is where you have to go
and invest yourself and that's where oh
my God how do I do that we're never
taught how to do this we're never told
how to do this we're never given
Direction on how to do this so you have
to be the one now to go out of your way
to start learning this and thank God for
YouTube because now we've decentralized
education but the question is now you
have to be willing to do it and you have
to understand who your teachers are
because there's there's crap on YouTube
there's also good stuff on YouTube and
we're never taught how to learn we're
usually just taught what to learn so now
we have to be willing and go out of our
way to become smarter to one start
learning and understand how do we learn
the right things and then apply it
because the the downfall with investing
is it's risky you got to be willing to
get punched in the face you have to be
willing to lose money because it's a
part of the process and it sucks it
sucks losing money I I made a video on
uh my YouTube channel minority mindset
where I went over my worst real estate
deal ever and the reason why I made it
is so you can see look every real estate
investor has got at least one bad deal
and to date that's the only deal that
I've ever lost money on and I walk you
through every single bad thing that I
mean because everything that could have
gone wrong went wrong plus a whole lot
more and it was one of the biggest
headaches of my life but my goal is you
know yeah you can laugh at me make fun
of me but you're going to see like holy
things can and will go wrong so just
anticipate it because that's it's your
real life tuition you got to be willing
to learn um and and you know it's a
price to pay and it's one of those
things where you know just like with
entrepreneurship everybody wants to be
successful as an entrepreneur everybody
wants to be rich how many people are
going to be willing to get punched in
the throat and keep going keep getting
back up and keep doing it it's very
difficult which is why you know what not
everybody should be an entrepreneur try
it but it's not for everybody but
everybody can work to own this Equity
right this ownership these assets and
everybody needs to how much did you pay
for your first share of Ford Motor
Company
$2 so this is what I want people to hear
and I'm glad it's coming from you I was
very honored to have Wall Street Trapper
on as well because I want people that
are I know minority um in the name of
your program isn't about being a literal
ethnic minority but it's about thinking
in a new way but having people that are
minorities at least in this country um
say like hey if you do the right things
you're going to be able to change your
circumstance what do you say to people
that either think well it's okay for
other people but for me either because
I'm poor or I'm a minority it's never
going to work for me so I'll kind of
give you the story of my family in that
sense because the reason why people come
to America is because of opportunity you
have the opportunity to own something
own a home potentially own equity in
companies build your own company you
have the opportunity to build something
which is something that you can't do in
a lot of other places in the world my
grandparents were
refugees they had some land and in
1947 the state of Punjab was
severed and when that happened if you
were a sick which is the religion that I
am and you're on the west side either
you migrate East are you going to be
killed W so now my
grandparents literally all they had were
the clothes on their back and a sword in
their hand and they ran during that
process my grandfather was attacked uh
and he had to literally fight for his
life he saw his uncle get his head
chopped open in front of him Jes put him
on a horse and that was the last time he
saw him he got to the new east side of
Punjab in India and didn't didn't even
have shoes on his feet didn't have a
place to sleep had literally
nothing now from there you got to start
right you got to you got to start now
all over from
scratch and there's a lot of political
issues you know unfortunately over there
and so that's when my parents my dad you
know my mom were like we want to get out
of this country we want to go somewhere
we have better opportunity to come to
America where you know don't speak the
language don't know the culture don't
know the people don't know how life is I
mean India is a very different world
it's a beautiful place but it's very
different than here and you start over
why as a minority as a minority just for
the opportunity because that's all you
know there's risk but you see the
opportunity there and do you think
looking back now do you think that
because it I often think that what we
refer to as being an ethnic problem is
actually just there is an element of SCH
what I call school of fish like you're
just you're going to group up with
people that look like you it's just so
embedded in the the subconscious but I
think a bigger thing is just it's either
majority or minority right because
globally the Indian um ethnicity is
massive billions but when you come to
the US now you're a minority do you
think that the tradeoff of going from
being uh the majority ethnicity I mean
everybody in India basically is shares
the ethnicity I know there's religious
differences but then coming here and
being a minority does the opportunity
that America provide outweigh whatever
detriment there is to being a minority
you know again if if you're willing to
work you have to be willing to work and
kind of just break out of whatever
anytime you see a majority kind of just
group think you have to be willing to
question that but you know the
opportunity you have here in America is
it more difficult now than before
absolutely is it more difficult for some
people than others absolutely however
it's the best opportunity you have in
the world and you know that's why
literally even until today you have
people that are willing to risk their
lives to come to this country and I mean
actually risk their lives and so you
know you have that aspect and I can
speak for me where s the religion that I
am they are a minority in India and you
know there's a lot of issues that come
with being a minority anywhere but again
where do you know here you have more
opportunity than anywhere else and so
the way I look at it you know for me
personally my parents Camp to this
country with next to nothing so I got
nothing to lose and everything to gain
right and so this is the place where
that opportunity exists but now you have
to be willing to work hard but you also
have to be willing to work smart I I I
can't Dam people say work smart don't
work hard but to me that's all complete
CRA because you have to do both you have
to do both because if you're not willing
to work hard your smart working is
effectively worthless you have to be
willing to apply both together and I had
none of this you know Financial
education right for me it was Dad I want
to go invest in real estate you're
stupid go become a doctor you know it's
it's I I had to do all my
entrepreneurial stuff in secret the
first my parents didn't even know that I
was doing this business stuff until I
was on the news I was running a
different sock company and this is now
you know a couple years after and um we
were doing well and we got featured on
the local news now my parents got a call
from a family friend and they said oh we
saw your son on the news and my parents
were like oh God what did he do now and
they're like no no he he has this
company he's doing really well they're
they're growing my dad was like what and
so then you know he sits me down he's
like what the heck is going on and that
was the first time they were like okay
you can actually do something with this
right and it was
like you have to for me was like I
understood what I wanted I knew that I
saw this like really I I wanted to
achieve success and I knew I was doing
it for Good Intentions um I knew I
didn't have like bad intentions with
what I wanted to do but the question was
you know how do I get there because it
was like I if I know if I try to
convince my parents it is like it's
going to be extremely stressful for me
I'm going to stress them out it's just
not going to work so I'm just going to
try to figure it out myself and I fail
what I said I'm in school so I kind of
had that backup but for me like I like I
went to law school as well the problem
was I wasn't the best student in school
um in law school particularly I did well
on the bar exam I loved learning and so
for me like you know I knew I needed to
pass the bar and so I studied hard and I
actually did really well but in the
classes I was not very good except for
the couple of the business ones because
I really enjoyed that but for me it was
just like I just need to get the degree
that way I can like be done with this
because I went to law school cuz my
parents found out that I wasn't going to
be a doctor they're like you got to at
least become an attorney to keep pride
in the family and so I was like all
right well if I go to law school I can
go to law school parttime and if I go to
law school parttime I can work on me and
my business full-time so that was my
mindset with it and you know but I knew
that yeah if I graduate law school and
things don't work out I don't even know
how I'm going to work as an attorney
because I have no idea I don't know how
to file a lawsuit I have no idea like
what to do so if I graduate like I I'm
going to have to like start all over and
figure it out after I'm done and it used
to give me a lot of anxiety but I was
like you know this is why I have to
figure it out it was a mission because
one I wanted to do to give back to my
family and myself and second I wanted to
do it because I wanted to prove a lot of
people wrong and I remember when I used
to talk about this everyone's like oh
you shouldn't do it out of spite don't
do things because you want to prove
someone wrong I was like you don't
understand you don't get some of the you
know the the things that you hear the
things that you see and sure you know
maybe it can't drive you forever but it
can take you I mean that pain
of seeing the the things that people say
because you know in between I started a
sock company and when I was doing the
sock business this is when you know
people started to be aware that I was an
entrepreneur and I wasn't like super
successful I was doing okay uh I was
doing and that's when I got on the news
but you know just think about this I was
supposed to be a doctor now here I am
selling socks on the internet and
everybody is like oh so you left you
know this idea of becoming a a doctor
now you're just selling socks and you
know hearing that for
years it's like one day I'm going to
have your kid want to work for me that
was like in the back I never said that
but I was like in the back of my mind
your kid's going to want to work for me
one day and uh it's like that driving
force where I know I'm going to prove
this person wrong I'm going to make this
person like really like see that hey I I
am worthy I can do something but it
takes a lot of work you know going back
to that but it's it's it's be with
anything being willing to try being
willing to take risks being willing to
make mistakes and being willing to learn
from it because you know like I said you
know for me I was willing to be dumb or
stupid I never saw that risk until more
recently because for me it was just like
I know this is what I want and so the
risk really was never even on my Horizon
if I had a business idea I would start
it like the same night because for me it
was like I just got to I I want to do
this I want to figure it out books
weren't were kind of giving me an idea
my teachers weren't teaching me this I
don't know who to turn to my experience
was my teacher that's how I learned
learn how to be an entrepreneurs how I
learn to start investing that's when I
started learning about money because you
know the whole issue with the money
stuff I mean this is something that
we're never ever even remotely talk
taught about and it's now becoming a
real pressing issue you have to be
willing to try learn risk failure you
are going to fail I always try to get
people to understand that failure is the
most information Rich data stream that
exists it sucks it hurts it can be
costly but one in triggering the parts
of the brain
that have to do with pain you trigger
the parts of the brain that have to do
with memory and focus so you're more
likely to really look at that thing that
you don't want to happen again to figure
out why that happened memorize it and
then you're going to get better the next
time and to your point about um having a
chip on your shoulder and people telling
you that you can't do something and
thinking one day you know your kid's
going to ask to work for me it probably
is a primary driver over an extended
period of time like you said it'd be a
little costic to the soul but it's so
power in terms of so you've got light
energy and dark energy right just to be
like All Star Wars about it and if what
I have found in my own life is that the
hardest times the light energy will only
get me so far and then I'll hit a brick
wall and I'll want to stop and it's only
when I tap into the dark energy of like
I will not let this person be right
about me I am not going to back down cuz
I know they're just waiting for me to
fail that it actually does give me
another boost now I try to split it call
it 8020 where I'm spending 80% of my
time in the light the beautiful things I
want to do the people I want to help but
dude let me tell you 20% of the time I'm
thinking of that the person that really
wants to tap down on My Grave it gets
you going right yeah 100% and and and
you know I I found the same way because
for me in the beginning it was just
figuring it out I went from business
idea to business idea to business idea
because for me I was just trying to
figure it out hooping from one idea to
the next but then you know you talk
about the light energy for me it was my
really driving my passion and my mission
and my purpose and that became more of
the light energy because now you know
after a certain point you're like the
money doesn't drive you it just is what
it is right it's just like I'm fine like
I I'm not a very materialistic person I
don't really care you know about brand
names designer names first time I made a
million dollars I was driving a $500 car
right it just doesn't matter uh like
sure it provides some sort of benefit
more comfort more value but after a
certain point that money is not a driver
it's now what is my purpose and for me
you know that Minority mindset where
where rich started making videos I
wasn't doing it to make money I did this
as a hobby because I got scammed in that
sock company just talking about things
that you know I wish somebody would have
told me when I was younger like having
to do with business having to do with
money so I did it as a hobby and people
will say you can't just do that as a
hobby I'm like dude you don't understand
I didn't invest any money into it I was
making videos off my phone I bought like
a 30 or maybe $35 tripod off of Amazon
and I was just making videos for fun and
like my friend asked me and I think I
was around 10,000 subscribers and he
asked me he like how much money are you
making off of YouTube like what do you
mean like how much money are you making
from your ad Revenue off of
YouTube I don't know what do you mean he
goes into my YouTube back end with me
and this is before YouTube had
requirements of like you got to have X
number of videos X number of subscribers
view time anybody could monetize any
video he's like dude you haven't even
turned monetization on click one click
and now you can start making money after
your videos I was like oh I didn't know
that I really enjoyed it for me this was
like really fun and something that I
loved doing which is why I did it and
then minority Minds started to grow
started to make some money and I was
like oh I can actually like do this like
I can work on just spreading this this
purpose what is it about what you guys
publish that people respond to it's one
email right it's a newsletter and you
know it's coming what time is coming you
know where it's going to be every day
and so people want to open it
we don't need to have a the world is
ending you know where it is and then we
just break down what's happening in the
stock market the real estate market the
crypto Market what's happening with
inflation what's happening in the global
economy and then if there's anything
else we'll add that in there as well and
it's super fun and so you can avoid that
headache avoid all that you know
spending hours and now here it is in a
fun with to read email what should
somebody that in this environment they
want to pay attention they want to make
the Right Moves they've listened they
know that you bought your first stock
for $2 they know that no matter what
they look like they need to be changing
their behaviors that they need to find
assets like in this uncertain time where
should people be putting their money I
know there's no one size fits all so so
I'll tell you where I invest my money I
invest my money in five places my
business Market briefs and other
startups I invest my money in real
estate invest my money in stocks invest
some money in cryptocurrency and invest
some money in physical gold
now I don't recommend you go on and just
start putting your money everywhere
start with one place how did you pick
those five and how do you allocate what
percentage so I don't giving a
percentage will be hard because
valuations change all the time but I
have been less and less
actively before my active investment
main one was real estate that was the
thing that I loved and a thing that I
really understood so anytime I had extra
cash I would go out and buy rental
properties but now I'm doing less and
less of that so I can have more money to
invest in my own company Market briefs
um but now what I do is out of
my company's minority mindset I pay
myself a salary out of that salary
pretty much all of that gets passively
invested he gets invested into stocks
crypto and physical gold so what does
that mean right well in stocks I have a
system where every Wednesday you can
pick whatever day doesn't really matter
but for me as Wednesday uh my money is
automatically pulled out of my bank
account and it's invested into a few
different ETFs so an ETF is an exchange
traded fund and you could think of it
like a group of stocks so instead of
going out and investing in Amazon one
company and then hoping Amazon grows you
invest in a group of companies like some
will give you exposure to 30 some will
give you exposure to 500 some will give
you exposure to thousands there's a
bunch of different ETFs out there and
there's ETFs for a bunch of different
things like one example that I invest in
is the SNP 500 ETF the S&P 500 is a
group of the biggest 500 companies on
the stock market and so when you invest
in this ETF you're literally or
indirectly SL directly investing in the
biggest 500 companies on the stock
market without individually investing in
all of them you invest in one ticker
symbol and it gives the exposure to all
of them so you're in essence investing
in the companies that make America
America you're investing in America you
can invest in specific sectors
technology health care you can invest in
uh companies around the world emerging
markets and so you can find these ETFs
you know again Google search YouTube
you'll find kind of the things that
you'll see what your interest is and buy
what you're spending your money on uh
and and so that's a one thing that I do
I have a few ETFs every Wednesday I'm
buying that and then I have my
cryptocurrencies so uh for me you know I
I I think cryptocurrencies is going to
have a lot of value in the future but I
also believe it's going to be very
volatile I think we're going to see a
lot of you know just like anything else
there's there's a lot of dumb money in
crypto and you know anytime you have all
this money that was printed right
money's going to want to go to dumb
places and so I think that we're going
to see some cryptocurrencies go under
and uh again what is that going to do
it's going to create Panic it's going to
create volatility it's going to create
fear so you know especially when the
newer asset class you have to be willing
to understand that and with understand
that and so you know I understand that
you know I'm not the most educated
person in crypto but I understand the
basics I believe in the value of the
blockchain so I invest in Bitcoin
ethereum and a couple of the smaller
coins uh the things that I believe in
and that's happening every day and then
I invest in physical gold every month I
have some cash going to buy some
physical gold every month and so this
has happening on autopilot it's
automatic it's passive and it's
consistent and it's just a simple way
for me to invest because what a lot of
people try to do when they invest they
say I'm going to invest in the stock
market okay either you know when times
are good I'm going to try to find the
next hot stock the thing that's been
rallying like crazy everybody's been
making a ton of money on it so I come in
and buy and that's when it starts to go
down and then they get scared they lose
money and then they sell or when times
are bad they say I'm going to buy at the
bottom I'm going to wait for that
perfect time to come in and buy and this
happened again in 2020 in just textbook
form because the market started
collapsing and it was the fastest
collapse that we've ever seen in the
markets even faster than the Great
Depression W and so what I was saying
was on YouTube I said look here's what
I'm doing I'm buying I have the
companies that I like because my ETF
strategy is happening passively but
actively I'm also picking and choosing
what I want to buy I already knew which
companies and stuff that I wanted to own
I'm just waiting for a good entry point
a good uh price to buy so what I said
was look when Things Fall by 10 to 15% I
buy when it falls by another 10 to 15% I
buy more when it falls by 10 to 15% I
buy more aggressively I just buy the way
down in phases because I can't perfectly
time the market and anytime I said that
it was just a flood of comments people
saying why would you want to buy now the
whole Market's going to implode it's
going to go way lower just wait that we
can get a better buying opportunity and
I said I I can't predict the bottom
that's not my game I'm not trying to
time the market I don't got a crystal
ball and then what happened the FED
opened up the money printer at and they
did something called unlimited
quantitative easing which is something
you know we've never really seen before
and so they just flooded the economy and
markets with money and now you had the
market the fastest collapse other ever
and then you had the fastest stock
market rally in the history of time and
it was like no I don't I mean I couldn't
predict that I don't know who could have
but if you were waiting to time the
market you missed the opportunity and
the people that weren't trying to and
you just you know you wait for the good
entry point you're buying even when
everybody's scared they were the ones
that were able to make a lot of money
very quickly way faster than pretty much
I could have anticipated or anybody
could have anticipated just because you
understood you know you buying phases
all of this everything we've been
talking about today you're up against
the nature of the human mind from uh
clickbait titles are necessary because
that's how the human mind works um
Euphoria in the market human mind fear
in the market the human mind uh the fact
that you're not trolling somebody to say
Buy Low sell High because it's one of
the hardest things you're going to do
yeah it's the human mind at work right
like really getting to understand what
the psychological aspect of all this is
so I know somebody and even myself
when I was in a lower middle class
existence I was obsessed with getting
rich and that was just like all that I
wanted to do now getting rich the thing
that surprised me is that it didn't dull
my ambition it it can't quench your need
for fulfillment and feeling like you're
doing something that matters and so I
just found myself right back in the game
wanting to build something and create
and have a great time and thankfully I
had learned that you really have to
optimize for the failure scenario
because um despite being successful I
fail a lot so it's like really
understanding the nature of that what I
call the physics of progress that
failing is just a part of the the thing
um but so I get it I get that people
that are on the come up are not going to
believe the following statement but I
promise that it's true the most fun
you're ever going to have the the
Pinnacle of existence is that moment
where you're working really hard at
something that could pay off
tremendously and you believe it's going
to work yeah there's nothing better than
that moment oh my God I'm working really
hard at this I think it's going to work
and if it works oh my God like the world
is going to be mine that's way more fun
than actually winning and getting the
thing yeah and so enjoying that ride
Journey yeah like that's that's the
juice and so I found myself to re back
into that position of like oh my God I'm
building something and if we pull this
up it's like so I know that it's not
about the money it's it's really about
fulfillment I don't want to harp on that
too much but like just getting people
understand you're in a battle against
your mind if you can get to the point
where you realize that being around the
people that I love is going to be huge
emotional amplitude doesn't matter if
we're on the beach or if we're you know
in a hut as long as we have our basic
needs met cuz for sure that
matters but we have that emotional
amplitude isn't going to go any higher
by having a ton of money but that moment
of like I'm building something that
matters I think this really might work
and if it works like you know like we've
got some big victory that's the juice
and you're going to constantly want to
be in that now given that all of that is
true make sure that you're taking some
percentage of what you're doing and just
put it in the set and forget that way
you get older and it gets harder to be
sort of peak energy all that stuff that
you've got money it's going to be doing
its thing and then and maybe it's just
taking that like you said you can spend
75% Okay cool so if we know that we have
to save some and we know that we're
going to buy assets with some then why
don't we take some of what we're going
to spend and spend it on building
something starting a side hustle
whatever seeing if that works for you I
mean we're going through a period now
where it's like everybody wants to start
their own thing
try it like see if it's your B I think
people will I heard you quote you have
to be willing to get punched in the
throat I always say kicked in the face
but like it's the same thing maybe both
very very yes uh if you like it and
that's something that you enjoy then
that's a tremendous outlet and that can
be the thing where you're really
gambling on big upside yeah but man if I
could just get people to internalize
this idea of emotional amplitude yeah
like life's Peak joys are available to
everybody yeah regardless of money like
I think Warren Buffett underplays wealth
a little bit like he said look I'm
eating at the same restaurants that
you're eating at uh I'm staying at the
same hotels you're staying at I'm living
in the same place look the money can do
some pretty interesting things but it
can't change the amount of emotion that
you feel 100% And if I can tie this back
into what we talked about in the
beginning of this video where we talked
about we talked about the real estate
market we talked about everything going
on with with that and I
think the best way to explain that now
because you're putting some money aside
what are we looking to buy because I've
talked about this recently a lot on my
channel where the American dream because
he mentioned this the traditional
American dream was being able to buy a
home pay it off and now you own a home
the reason why this was the American
dream for anywhere in the world is
because when you paid on your home what
are you building in your home equity
it's this concept of equity
and we assume or we for lack of better
we don't have the financial education to
know that that equity which we think is
going to make generational wealth
because Equity is where real wealth is
built can only be found in the home that
we live in but that's not true and this
is where so many people get things wrong
because they now stretch themselves too
thin they do risky things take out
adjustable rate mortgages use too much
debt to buy a home because they think
that it's an investment that's going to
make them wealthy because now you can
pay it down build equity and have
something to pass down however there are
many other ways to build equity to build
real wealth that you can then pass down
this goes back into the assets that we
talked about right when you invest your
money into stocks you are building
equity in these companies when you go
and invest in real estate as an
investment not where you live in
yourself as a rental property You're
Building equity in your real estate
portfolio and this is different than
your home because when you buy a rental
property you're buying it for one
purpose you're buying it for the purpose
of making money you buy a home for the
purpose of making memories so if you're
buying something for the purpose of
making money you're probably going to
make more money because you're going to
do a different type of analysis than in
the home that you live in and you know
one way is you can go and actually buy
it and the second way like you've been
talking with entrepreneurship is you can
build the equity so when you build a
company You're Building equity in the
company like if you go and start a
company you are the 100% owner of the
company well if your company can make
$100,000 of profit a year
your Equity might be worth2 200,000 half
a million a million dollars depending on
you know whatever type of company it is
but you're building equity in a company
so you can build this Equity you can buy
this equity and the whole idea of a
recession is now this type of equity
these Investments these assets can go on
sale and this is where now you can come
in and buy more Equity at a discounted
price and this is one of those things
I'm going go back to we keep mentioning
what we talked about before in a
previous interview we are never taught
this because school teaches us to become
an employee what do you do when you're
an employee you get a salary do you get
any Equity with a salary no maybe your
company gives you separate Equity as a
compensation package or something but
your salary is payment for hours that
you work and that is nice today but once
you spend your salary you have nothing
left real wealth in this country in this
system is built through owning Equity
we're never taught this this is what
gets me really heated up because we're
never taught about this and so if you're
if our whole system is taught around
building and earning a salary how come
we're never taught about building Equity
because now what we should be teaching
is hey go to school get educated but
understand that wealth is built through
Equity so earn a salary doing whatever
you want whether you're a doctor or
you're working at a factory doesn't
matter take some of your salary go out
and build some Equity we're always
taught and think and told that the way
you do that is to follow the American
dream of just buying a home because now
you can pay down your home build some
Equity but that is honestly one of the
worst ways to build equity you never
talk about wealthy people becoming the
richest people are wealthy people
because I paid off my home no you become
wealthy because you own a company you
built a company you invested in stocks
you invested in real estate you invested
in equity somewhere else and your home
is honestly like one of the last things
that wealthy people think about yeah for
the majority of people when think about
been becoming wealthy and building this
type of generational wealth what are
they thinking about buying and paying
off my home and there's so much more to
that but it requires that Financial
education yeah I want to go back to
something we were talking about earlier
debt
covenants so you were talking about at
the time that there's two kinds of
selling there's selling because you
choose to but often times people are
doing it out of panic and then they're
selling because you're forced to um in
business when you're taking out a loan
they put covenants on it meaning the
following things must be true for you to
have a loan in good standing so even if
you're making your payments If the ratio
of like your accounts receivable so the
amount of money that you know that you
have coming in if it drops below a
certain level if that's one of the
covenants or you have to have a certain
amount of savings in the bank or your
profit margin has to be 133% or higher
whatever they put these covenants on
that is that's what happening when
somebody is getting overextended with uh
either sort of so um if we talk about
real estate first when you go now
there's a couple different levels of
real estate investing and Loans assuming
you're buying with debt now in the
beginner level they're going to look at
your income very heavily your income to
debt ratio just like when you go and buy
a home they're going to look at all the
same things to go and buy uh a rental
property then as you get a little bit
bigger they're not even going to really
care about your personal financial
situation what they're going to be
looking at is primarily just like you
were saying the actual investment itself
because now you're buying a essentially
a business if you're buying an apartment
complex well now you're buying
essentially a business and then what
they want to see is okay what's the
price of this how much rent are you
generating every month every year what
are your expenses what is the margin
because they know that this property is
going to continue to generate rental
income and the rental income is going to
then pay for the mortgage the loan on
the building and so that's what they're
looking at and of course they're going
to want to see your uh personal
financial situation because they want to
see okay if things go bad what can you
do do you have any access to exess cash
do you have any other access to Capital
do you have any other wealth do you have
any other experience but the primary
thing as you get bigger and bigger is
this going to be the property itself in
the stock market oh man well let's stand
property for a second so are they going
to call the loan like there will be a
predefined set of things I imagine that
if they stop being true they'll call the
loan so for instance as long as you have
20% equity in the building we're fine
but the second the value of the property
drops like if you put out let's say $5
million to buy it if the property ceases
to be worth $5 million then we're going
to basically call it because I know
that's what ends up happening to
somebody in the crypto Market if your
crypto is worth a million dollar and
you've got a million dollars uh borrowed
the second that that's worth a million
they're going to uh do a margin call
sure because now it's like if it goes
down anymore than they're out money so
they literally the second it drops to
the amount that you owe boom it's gone
and it works similar to that in the
stock market but in the real estate
market no they're not paying attention
to the valuation of the property
day-to-day because that's also kind of
ambiguous a property is worth really
what someone's willing to pay for it you
can run an appraisal you can do comps
but at the end of the day is what
someone else is willing to pay for it so
instead of them looking at the valuation
of the property or what the think's
worth what they're looking at is are you
making the payments um because if you're
making the payments they're not going to
ask you questions if you stop making
payments that's when they start asking
questions and that's when they start uh
trying to figure out what to do and then
they might force you to sell now forcing
you to sell in crypto is very different
than forcing you to sell in real estate
because forcing you to sell in real
estate is not going to depend state to
state what the foreclosure process looks
like how intense that process is and how
long that process is ver in crypto from
my understanding is it can be pretty
instant you get that Margin Call they
can take your crypto back pretty quickly
real estate we can be a year and then
there's a lot of different tools that
can be done like in the 2008 real estate
crash one thing that was very popular
was a short sale this is separate from a
foreclosure a short sale is now where
there's three parties working together
the seller the bank and the buyer are
working to now come to an agreement on a
price where the bank agrees hey we're
going to lose money on this deal uh
we're willing to lose x amount of money
on this deal the seller says yeah I'm
going to walk away from this deal and
not make any money but at least I don't
get foreclosed on and the buyer says
fine I'll pay this money I was involved
in multiple short sales and one of the
short sales that I was involved in they
also had an additional provision where
okay the bank's going to agreed to lose
however much money I don't remember the
exact numbers the seller agreed to walk
away and not get a penny from the home
and then they also wanted me to write a
separate check at closing to the sell's
contractor because he had done some work
on the property never got paid and had
put a lean on the property meaning he
essentially uh made a claim against the
seller backed by the value of the home
that hey I need to get paid so I then
had to also work out a deal with the
contractor where all these parties where
the contractor had to agree to a certain
amount of money this was a long time ago
so I don't remember the exact numbers
but so it was two separate checks that
had to go one was to the contractor to
make him happy and whole and then one
was to uh the bank where the bank now
was okay with losing a certain amount of
money and they're willing to do this the
bank and situation because if they had
gone gone through
foreclosure they would have to spend way
more money on legal fees they'd have to
spend way more money on administrative
fees and then they'd probably even sell
the home for less money when it came to
the actual foreclosure process and the
seller would prefer a short close a
short sale in this situation because if
you don't do a short sale and you go
into foreclosure then your credit score
gets hit you have to go through the
entire foreclosure proceeds so you don't
take a hit if you do a short sale uh if
you do it right you typically don't have
to get the same sort of credit score hit
because you're just selling the home
versus a foreclosure I mean so there are
again the reason why I said you have to
do it right because there's Provisions
there's certain contracts that you want
to make with the lender saying that
they're not going to come after you for
the previous money and they're not going
to file some other things so there's
specific contracts so it gets very
complex where you want to make sure you
have a good attorney because it could
affect your credit score and it could
also not affect your credit score as
much depending on how good your
representation is and how well you draft
these agreements so it becomes very
complex versus you know we talk about
with crypto or with the stock market if
the value of your Investments fall to a
certain amount and you don't put in
certain amount of money it just sells
there's nothing else like they're they
going to say give us $10,000 right now
or we're going to sell the Investments
for you and there's really no other if
ands or buts it's like almost automated
in that sense so it's a very different
situation how do people get into the
stock market with
debt it's actually
very
simple most
brokerages make their money through
margin meaning debt because if we what
backtrack so you're saying if I go
somewhere like Vanguard I can buy on
debt so let's let's talk more about the
mainstream like Robin hoods and uh the
more of the mainstream brokerages in
that sense where Robin Hood now is
mainstream huh they're they're pry main
how long have they been around for I
don't know the exact years it's not that
long right they're they're I mean
they're you know one of those startup
brokerages I don't know what year they
started wow well let's start about a 100
years ago and then we'll kind of take
this little time lapse 100 years ago if
you wanted to buy just just a couple
days back if you wanted to buy stocks a
long time ago you would have to have
access to a actual stock broker you
would probably have a financial adviser
it'd be a very difficult process and a
very long process where if you wanted to
buy a stock you would call somebody who
would call somebody who would make a
transaction maybe multiple people to
make the transaction so it was a very
long process then in uh the 2000 early
2000s started coming these digital
brokerages this is where Charles Schwab
erade tdmr trade they really became
bigger but the way that they would make
money was they would charge you a fee a
commission to make a trade so it was
somewhere between s $5 $7 to $15 to even
$20 to make one transaction to buy a
stock or sell a stock then after the
2010s came things like Robin Hood and
Robinhood then shook things up even more
where they said we're a commission free
brokerage you can come trade stocks on
our platform and we're not going to
charge you a single trading fee now if
you're not charging a fee how are you
going to make money well the first way
that they made money was uh this whole
concept of you would buy a stock on
Robin Hood and then Robin Hood would
then make that transaction a little bit
later and they would sell these trades
it was a very complex process where they
would sell it to another entity so you
were kind of doing an indirect trade for
you as the trader it made no difference
or negligible difference you wouldn't
even know the difference versus
Robinhood is then selling these trades
on the back end but then the second way
that they would make money is through
margin meaning that Robin Hood and these
platforms would then lend you money
based off of how much money you have in
the platform and then you can trade not
just with $100 that you have in your in
your Robin Hood account but now with the
extra 20 50 maybe $100 that Robin Hood
is giving you that you can now trade on
margin and the amount of money they're
going to give you is going to depend on
a number of different factors um but
then they literally will just extend you
this line of credit and now you can
trade and I know this from firsthand
experience not with Robin Hood but with
the different brokage because when I
first got started and we talk about
trading this was when I was forget if
was my first year in college um I spent
a summer doing trading and I was using a
platform for and uh they told me that
hey I can I can I started trading and
then they said let's upgrade your
account to a Trader's account I said
okay cool and then they said hey uh we
will also give you more money to trade
with
margin I didn't this shows you how naive
I was with the lack of financial
education that I had I thought it was
free money I didn't know that this money
had strings attached to it I didn't know
I had to pay the money back I didn't
know that I was being charged interest
so what would happened was I traded
money I now I don't know if you've heard
there's a a guy named J breit Singh and
he says the most expensive money is free
money it's free money I learned that
lesson a very painful way so I was
trading money with uh the brokerages
account where I just thought that
because now I'm making um making more
trades that they're going to make more
commissions and just going to you know
that's how they made their money well
long story short um I had lost money on
some of these trades that were on margin
and they said hey you need to put more
money in the account I was like what do
you mean okay I got to make a this
whatever margin so then I you know I had
fortunately some money I covered it and
then I decided I'm no longer going to be
a Trader I'm done with this so we loaned
you money to make the trade you lost pay
us back I paid the money back so now how
long do they give you to pay back I
don't remember I paid it I had the money
so I just paid it because I was I
understood that I had lost their money
so that part made sense to me and then I
was done trading I realized this is not
for me I don't want to spend this time
you can't pay it
back well I don't know exactly what they
do but they're going to come after you
I'm sure they will file a law I'm
thinking about this I'm an attorney
right from legal
perspective it depends on how much how
much money you
owe and uh what you're going to be doing
because now they can very easily file a
claim against you they can you know run
a lawsuit against you if you're not
paying there's a lot of different things
they can do and the more dollars that
you owe there's more things that they
can do just like with anything
else but then you know I'm done trading
and then a number of months go by and I
start seen this like deductions from my
account I'm like what am I being charged
for so I call them up and they're like
it's your margin like what are you
talking about I'm not doing anything
well we gave you money it's in your
account you have to pay interest on the
money that we gave you and that's when I
realized there's a cost to money right
and so that's when I said turn this off
take your money back I don't want this I
paid interest on it and that was the
last time that I did that but this is
you know wow it there's
was I don't know 18 years old 17 18 I
had no probably 18 I had no idea what I
was doing and this is where a lot of
people get in trouble because you think
oh I can double my money pretty quickly
but if I use their money in addition to
my money now I can quadruple my money
cuz I only got to pay you a little bit
of percentage if you know that you got
to pay them back I so I don't know a lot
about Robin Hood I am super stoked that
the average person can now get into the
equities Market but woo that's how
people get into trouble when they're
using the financial education along with
everything else accessibility is great
but the accessibility without Financial
education can be dangerous now if you
start using these tools because if you
don't know the cost of some of these
tools it can be very bad for example
think of a credit card is a credit card
a bad thing or a good thing it depends
who you ask right uh you know there are
so many people have thousands of dollars
with the credit card debt that is
skinning them alive y I only transact
with the credit card why because well I
get my points I get my cash back I get
my fraud protection I get free insurance
on my car rentals I get all these
things that I wouldn't get if I paid
with cash even if a debit card I don't
get all these things so now when I'm
spending I spend a lot of money
especially in my business if I spend
$100,000 a year or a half million dollar
a year I'm going to get a big cash back
back check that I can put right back
into the business I can spend it I can
use it on a vacation I can get free
perks I mean I get so many different
things but that's only because I know
I'm not going to change my spending
because of my medium I'm not changing my
spending because I have a credit card
I'm just using a credit card to
facilitate my transactions as opposed to
using it as a free money printer and
again what is it it's that Financial
education along with the tool it's not
the tool that's inherently evil it's
when you use a tool without that
Financial education that now you can get
screwed over that you get in trouble
that you start hating the system oh
they're out to get
you they're not giving you the financial
education because it's not in their best
interest to give you that Financial
education but this is where if you have
the financial education you can use the
system to Advantage but the problem is
we are never taught this right and it's
so it's just like it for me it pulls on
these strings in my brain because it's
like oh my God it just screws so many
people over because it's profitable to
keep people poor if you don't understand
this you're going to spend more money on
your credit card you're going to spend
all your money making everybody that's a
terrifying statement that you just rush
past it's profitable to keep people poor
it is profitable to keep people poor is
it profitable to keep them poor or to
keep them ignorant it's a mix of both
when you're ignorant you stay poor it
they go hand inand because if you don't
have the financial education what are
you going to do you're going to go spend
your money at Gucci Louis Vuitton you're
going to be buying the extra guac
because hey you got that money then how
are you going to buy it you're going to
buy buy that extra you're going buy the
extra [ __ ] lifestyle you're going to buy
it with your credit card and you're not
going to wait until you can afford it
you're going to buy it now because you
can and nowadays it's not just a credit
card it's buy now pay later and
everybody talks about how buy now pay
later is 0% APR there's there's no cost
to this money you can buy it now pay
later but again like you said what I
said the most expensive kind of money is
free money they got to make money
somehow there's a reason why there's
billions of dollar pouring into the buy
now pay later industry one of the
fastest growing fintech Industries ever
because when you spend on buy now pay
later what happens one you're spending
way more money than you would have if
you didn't buy an out pay later because
if you wanted to buy a $1,000 sofa you
have to have $1,000 in your pocket well
now you can buy it down and pay it later
so now you can spend $1,000 on something
else second what happens to so many
people is you don't pay it off in time
now when you don't pay it off in time
there's no no longer 0% APR now you get
slapped with the very Hefty very
expensive fine so now it's okay the tool
plus the education the tool plus the
education going back to
inflation inflation you know is it a
good thing or bad thing I think you
asked me that last time or are you
talking about you know the way the
system works again just depends depends
on if you understand it or not if for
wealthy people they they love the
inflation hey keep paying more for my
assets keep driving up the value of my
assets keep making me wealthier versus
for the average person you keep getting
screwed over because now your groceries
are more expensive your gas is more
expensive your rent is more expensive
everything is more
expensive everything you know it's
understanding the tool and the education
the tool I'm going to give one more
example because this this is the stuff
you can see it gets me
so keeps me up at light it gets me
really upset because I understand both
sides because I never had that Financial
education and now I see the benefit of
it and I'm like please learn this even
if there's a click bity title because I
need you to watch it please learn this
we talk about you know how the
government many times like they might
have good intentions but the people in
government aren't economists they're not
always the best decisions with their
money because sometimes their goal might
just be to create jobs and creating jobs
is different than being efficient and so
you know if you look at like for example
the college education system where back
back in the day it was not easy to get a
student loan and back then College was
also a lot cheaper and back then a lot
of people were not getting a college
degree so if you had a college degree
what happened you stuck out you were
different you had
something well what happened later you
know I think this was in the 70s now the
United States government maybe 70s 80s
around that time the United States
government passed a law that said that
if you want a student loan we'll
guarantee it anybody can get access to
college education the government will
guarantee a student loan now this sounds
like great news hey everybody can get
educated how can that be bad but
colleges heard this and it was music to
their ears you're telling me that I can
charge any amount that I want and the
government is going to guarantee to give
that to our students sign me up now we
can up our tuition rates and people keep
paying now everybody can go to college
because we think that we need to go to
college in order to become successful
and now where we are today everybody has
a college degree if you go and apply for
a job with a college degree you don't
stick out you're just like everybody
else there are habits that keep people
poor and that anybody regardless of
where they're born what their circumstan
is if they do the right things over a
long enough time period they can get out
of it we are living in horrendously
uncertain times yeah what are the things
the habits that keep people poor wow
well the first one really has to do with
understanding money because unless you
understand what money is none of the
other habits really matter because at at
its core what is money and when you ask
people that you might say was a $100
bill a $50 bill that's what money is but
what is that money because that money
that we have today is different than
what money was 60 years ago the money
that we call money today is currency
it's really just pieces of paper and
when you understand that it's going to
change what you do with the money and
the reason why I'm saying that is
because I'm from my family's India a
state in India called Punjab and over
there it's a very traditional thing that
when you earn this paper dollars many
people will convert this cash into gold
because they understand that these paper
dollars lose value and it's just paper
so they want to convert it to something
real something tangible so they will go
out and buy gold with it all right
really fast explain to people why paper
money loses value over time so our paper
dollars can be manipulated and
controlled by other entities such as
such as the Federal Reserve Bank Y and
the government now the interesting thing
about the Federal Reserve Bank is it's
called the Federal Reserve Bank however
it's not federal it says so on their
website they're not a reserve they don't
keep cash reserves anywhere they're not
a bank you and I can't go there to
deposit money so what happens is should
I hear wolves howling in the background
like is there something sinister going
on do you think for real or is it just
the system and it's just how it works
well it depends if you understand the
system you can use it to your advantage
if you don't understand the system it is
going to screw you over many many many
times yeah this is my obsession so as
you and I were talking about before we
started rolling camera two years ago I
considered myself very good at making
money very bad at investing money right
and then the pandemic hit and I really
started to panic for other people that
look I'm going to make it out of the
pandemic fine but I don't know that that
will be true for people that don't
understand money right and so getting
educated like for me to try to help
other people I've had to educate myself
about what money is right getting
freaked out by inflation and I've heard
you talk about this so I know you know
this well but that the government when
you say manipulate the money they
literally just make more of it right
magically literally and and this is
where the rich will become richer the
poor will become poorer and the middle
class will get wiped out and the reason
why is because some people rich people
will understand money and they will
continue teaching their kids and
everybody else the majority of people
who have no idea what's happening will
continue to become poorer because they
don't even see it happening and so what
happens is so you have the government
and the fed the government spends money
now where did they get their money well
they get their money from taxpayers
people like you me people watching this
video through tax dollars now can can we
Hammer that for a second the government
does not make money the government takes
money from people who are making money
right now that's not necessarily bad
because they provide a lot of amazing
things they're not necessarily efficient
with their dollars So yeah so we can
dive into that for a second so you know
you have to understand what someone's
role is if you are a company right you
you have a company your job is to make a
profit because if you don't have a
profit you're not going to be in
business unless you have some other
stream of you know Venture Capital debt
or something but if you don't have a
profit you can't continue operating and
so your job is to be as efficient as
possible as a company the government can
actually be benefited by being
inefficient because what is the
government's job you have to understand
what is their role if their goal is to
create jobs well then you can be as
inefficient as you want and you can
achieve that goal because if my goal if
I'm the government I just want to create
as many jobs as possible I can pay
people to pick up this mug and put it
from the left hand to right hand I just
created a job you're employed you have
an income but you're not producing
anything of value and this is where you
have to understand okay what is that
purpose and so now you know if we get
away from the politics for a second the
government now spends money they get
money from taxpayers because the
government is not a for-profit entity
they don't create a product and sell it
for or create something and sell it for
a profit instead people make money and
then the government taxes your income
now just like anybody else there's
checks and balances if the government
has a million dollars they can only
spend a million dollar you would think
but that's not how it works so the
government has a million dollars and
what's happening now is they're going to
spend significantly more than a million
dollar now if you have have a certain
amount of income and you spend more than
that what do you do well you're going to
have to subsidize or find that extra
cash somewhere and in the government's
case what they can do is they can go out
and look for a loan it's called a
treasury bond for as long as anyone can
remember have been considered the safest
investment anybody can make well what it
is is you're literally loaning money to
the government but what happens now if
there's not enough people out there to
loan money to the government if the
government wants trillions and trillions
ofar
if there's not enough people out there
to loan that money to the government and
they keep wanting to spend more money
you still got to make up this cost so
what do they do they call up their
friends at the Federal Reserve Bank and
they say hey we need a $2 trillion loan
and then the fed's going to say okay we
got you now remember what I said they're
not a reserve they don't have a cash
pile anywhere so what do they do they go
to the money printer and now they can
print out $2 trillion they loan this
cash to the government and now the
government got the $2 trillion the
Federal Reserve printed it out of
nothing the government can now take this
$2 trillion and spend it in whatever way
that they want it can be inefficient
they can try to create efficient
products but their goal is to hopefully
help people now whether they're
inefficient or not is a political debate
however you know that that is what they
do now really fast before we move on so
this is the part that people need to
understand about why the rich get richer
because I'm super as a rich guy I'm like
I'm going to get richer like what great
I never understood how so now what
happens you just printed this money
right and then which you don't actually
print by the way you just increase a
database somewhere it's a it's a bunch
of digits yep and now this money enters
our economic circulation but what
happens now when more dollars enter
without actual wealth being created
because we saw this happen in textbook
form in 2020 2021 where nothing was
being produced except money well when
more money gets produced it effectively
reduces the value of each individual
dollar this is what inflation is the
word inflation comes from the word
inflate what are you inflating the
monetary Supply so you're increasing the
monetary Supply causing the value of
each individual dollar to go down which
effectively causes the price of things
to go up and so in 2020 2021 no one's
producing however the government is
spending money like crazy where are they
getting this money the Fed so the fed's
printing money giving it to the
government the government's spending it
like crazy now people are getting money
it's people it's businesses it's
corporations um and this money is being
spent and now everybody is like wow I'm
sitting at home and I'm rich you have
some people who are getting big
unemployment checks you have some
businesses getting millions of dollars
and everything is running smooth but and
people are spending money like crazy
buying things but nothing is being
produced so then what happens well now
you have a supply chain mess because
everyone's buying all the stuff in
stores however no business is able to
produce anything because the economy
shut down so the supply chain issue then
you start to see is a byproduct of the
inflation
because everyone's trying to blame oh
the inflation is happening because of
supply chain issues but you have to look
at what is the real root cause the
inflation is what causes the supply
chain issues and now we're trying to go
backwards but this is where rich get
rich and the poor get poor because as
the value of the dollars drop what
happens for regular people your salary
doesn't stretch as far your savings
don't buy you as much and so you're
effectively becoming poorer each and
every day because for most of us we're
taught to save our money
that's what I was told to do growing up
uh you know that traditional Indian
house is save save save and so I was
told to save my money and your savings
are becoming less valuable each and
every day well what wealthy people do is
they're not storing cash they're buying
assets and so when when we have this
sort of economic system can you explain
what an asset is an asset this we're now
getting to the root of how the rich
actually get richer right this was the
part it took me a very long time to
understand but now that I get it one it
doesn't need to be the rich that are
getting richer anybody can own assets
yeah but they have to understand what
assets are and then actually buy said
assets right because this is how the
government pumps the money into the
system and this was the part like I'm
grateful sometimes that I'm kind of dumb
for real but and and this really I had a
breakthrough moment back at Quest we
were dealing with nutritional science
and I didn't always understand it and so
I would have to keep asking keep asking
keep asking keep asking but what I found
was if I just totally got rid of my
embarrassment over not knowing and I
kept asking until I understood it so
well that I could explain it to other
people that ended up propelling me
forward because I was no longer just
nodding and smiling and going along I
was like no no I don't get that I don't
understand I don't understand and so by
pushing into that then I actually began
to understand the biology I began to
understand what ingredients made sense
and all that so but I had to be willing
to look stupid yeah and so now because
I've been willing to look stupid for so
long in the world of Finance I finally
asked the magic question which is when
people CU I actually thought they were
printing money I thought that $100 bills
were coming off of a printing machine
that's not how it's done at least not to
the vast majority of it it's zeros and
ones in a database and when they create
that money I was like whose database
entry is it like are they actually going
into rich people's like accounts and
giving them money no what they do is
they buy often times government assets I
don't want to introduce the word bonds
and stuff but like they're buying assets
from the government but the question is
where did those assets get purchased in
the first place and they got purchased
by people who are effectively trying to
park their money as they call it yeah so
I for years was parking my money in
government bonds because the government
guarantees it yeah and so the way that
the government raises money without
having to raise your tax is they put
bonds out into the world that then
people buy so when they're pumping money
into the system they just go buy those
bonds so now they're buying them from
rich people because rich people were the
ones that were Ed educated enough and
had the capital to buy said bonds that's
correct and it goes actually a little
bit deeper because in the pandemic we
saw something that we've never seen
happen before so the FED has the ability
to work with interest rates I'll talk
about that in just a second and then
they can print money and give it to the
government and then when you have an
emergency time we saw this happen in
2008 we saw it happen in 2020 they can
do weird things so what they did in 2020
this is the first time it's ever
happened in history is they directly
gave money to corporations in the form
of purchasing corporate bond ETFs so
think of it this way the biggest
corporations in America can go out and
raise money from a bank they can go out
and raise investment dollars or they can
put out this loan say if you are a
regular person you want to loan money to
US you can do that and so there's ETFs
which is a group of corporations that
are looking to raise money um and it's
it's a way to kind of track those debt
Investments well in 2020 because a lot
of Corporations had no cash and now all
of a sudden they're like oh we can't
sell products we're going to go under
the FED did something that has never
been done and they started buying
corporate bond ETFs in the first time in
history and this is where things got
really dicey because now how do you
decide who gets that money or not I mean
they're printing money somebody's got to
pay for that who pay who's paying for it
regular people average people because
now it's a hidden tax
because the government can't just spend
money without somebody paying for it
they have to generate the tax dollars if
they don't pay it through tax dollars
somebody's still going to have to pay a
tax and inflation now is a hidden tax
it's a silent tax it affects the people
who don't understand money and it
disproportionately affects the poor and
the financially uneducated and this is
why Financial education is so important
is because if you don't understand this
you are going to get screwed over by the
system because now guess what your gas
is going to be more expensive your
groceries are going to be more expensive
your home cost is going to be more
expensive the cost to do anything is
going to cost you so much more today
next year the year after that while your
salary hey you got a raise but you're
actually broker now than you were before
the raise because your raise isn't
keeping up with inflation and so what's
happening now this money gets printed
and it enters our economic circulation
and now you can own the the assets or
what happens is let's say you own stocks
you own real estate
well the FED can also manipulate
interest rates so when interest rates go
down it makes borrowing money cheaper
well when you make borrowing money
cheaper more people and institutions are
going to go out and borrow money this
also creates more inflation because now
when you go to the bank and you borrow a
million dollars or
$100,000 the bank is going to work with
the FED to print this money and that's
how it gets injected at the economy so
lower interest rates create more
inflation and if you are somebody who
who's financially educated you own
assets and we didn't explicitly answer
what is an asset it is something that
gives you equity and at at the broadest
form an asset is something that puts
money in your pocket liability is
something that takes money away from
your pocket what's an example of an
asset this could be owning a business
investing in stocks investing in real
estate anything that you buy for the
purpose of making money right and so
when interest rates go down because now
the FED working with the government want
to create more inflation more are going
to enter economic circulation more
people are going to want to buy a home
well if you have more demand to buy a
home where do home prices go up who owns
homes well yeah if you're a homeowner
but if you are a real estate investor
now the value of your assets have just
because now you own multiple real estate
Investments your rents have gone up your
stock Investments have gone up because
now businesses can borrow money for
effectively nothing you borrow money for
3 four
5% and now you can borrow hundreds of
millions of dollars to grow the company
and if you can grow your company by 6%
well you just made a profit off of the
free debt and so now corporations become
wealthier because of asset prices go up
and what does this do the reason why it
makes rich people richer and poor people
poorer is because not only is your cost
of living higher but now if you want to
go and invest your money well asset
prices are more difficult to attain it's
harder to buy the same level of stocks
it's harder to buy the same level of
real estate because now the people who
own these have already seen that
appreciation and now if you're wealthy
and you understand this and you're
buying these assets and you've been
buying them now you're seeing the real
gains and you start to see this divide
between the rich and the poor and this
is where inflation disproportionately
hurts the financially uneducated and the
poor and disproportionately benefits the
wealthy and that's why the middle class
gets wiped out and the crazy thing is
none of us are taught this I didn't grow
up learning about money I didn't grow up
learning about financial education I
didn't grow up learning about investing
I didn't grow up learning about any sort
of wealth my parents are immigrants from
a state in India called Punjab like I
was saying before and in my household
success meant go to school get good
grades get a good job and and for me uh
that good job was I to become a doctor I
was actually given two options become a
doctor become a failure I could choose
and they let you choose they let me
choose right and uh so I saw how hard
they worked um for my dad if he had a
Saturday and a Sunday off that was
considered a long weekend and so
you know I wanted to give back to my
parents and knew wanted to become
successful they wanted me to become
successful and uh so I kind of followed
that path like doing what everybody says
following the system trusting the system
right and it just didn't make sense to
me because on oneand in my house uh
money was a taboo topic you don't talk
about money you don't worry about money
you don't it's it's a bad thing but at
the same time I see how hard my parents
are working to get paid you know to to
to pay for our Our Lives now we were
fortunate I never had to worry about my
next meal I never we were never poor or
anything like that we uh but I saw how
hard they worked and it wasn't until I
got to college until I realized
something isn't adding up because I was
actually studying to become a doctor I
was taking the Medical College admission
test the
MCAT and as I'm studying for this test I
started doing a couple things first I
started reading business books because I
was just interested by this that was the
first English is my second language so I
never grew up reading books in um you
know my grade school years I even
English class I almost failed my English
class in um I think it was middle school
because I just didn't understand how to
write papers or do all that uh but as
soon as I started reading business books
I started reading them for fun because I
was interested by it and then I started
going on to Google and I started
researching just random things from
things like the richest people in
America and you know you see like Warren
Buffett Steve Jobs Mark Zuckerberg I
don't even know he was on it back then
but you had a bunch of people who none
of them were doctors none of them went
down that traditional path and I was
like wait I I thought that grades
correlated linearly with income like if
I got better grades my income would
directly correlate with that so that was
like my first like wait is something
wrong here was was something like it
just wasn't adding up and that's when I
started to dig a little bit deeper and
it it's talked about wealthy people
investing in real estate now I had no
idea what that meant because I didn't
know any Real Estate Investors I don't
even know what real investing was I
didn't grow up around investors and it
said however the wealthy people invest
in real estate and this was right after
the 2008 crash I didn't know what was
normal in real estate to me this is all
I knew because now this is the first
time I'm looking at real estate prices
and I said oh I've been running this
event planning company kind of as a side
hustle because you know I wanted to
become successful how however my parents
didn't want me to do anything except
study because to them if it's not
related to biology or math it's a
distraction even like playing football
was a distraction doing all these things
that were not uh related to becoming a
doctor is just a distraction so I always
had this entrepreneurial bug but I
always kind of did it in secret because
it was never like allowed so in high
school I worked at weddings and I got to
meet a lot of the Indian DJs and one of
them um or a couple of them had this
idea to host teen parties for kids in my
high school I was like yeah why not we
got to meet one of these little local
Indian restaurant owners and they were
like yeah why don't you throw parties
here for free you can charge cover do
whatever you want we want the exposure
so I kind of did this in secret now I'm
in high school hosting these little teen
parties became this little event
promoter didn't make that much money but
it was it was a little hobby that I
started and then I go to college I'm 17
I don't know what colleges like or
supposed to be like in America um and I
I go there thinking everybody's going to
be spending Friday nights on the
chemistry lab studying I get there and
everybody is partying drinking I'm like
none of you guys have any money how how
do you afford all these like this this
lifestyle and I was like I need
something to do on Friday nights so
that's when I brought this event
planning company to college again in
secret my parents didn't know I was
doing this and I'm 17 and I was like
well let's try this so I started
knocking on the doors of clubs venues
bars restaurants trying to find a place
that will let me do it that's not going
to charge me a lot of money or really
any money because I have the the money
to uh put a deposit down for a fancy
venue and I found a venue that was like
yeah you can do it here we're not going
to charge you a penny just give us half
of your cover charge I was like all
right cool it's not going to cost me a
penny and I talked to my DJ friends and
they were willing to do it they split
the revenue with me so I only made 25%
of the revenue 50% went to the club 25%
went to the DJ 25% went to me to put
everything together but it was a start
and I started doing that in uh in
college and already I want people to
think about how you're thinking
differently about money because bringing
this back to the idea that there are
habits that keep people poor so one of
them is living and thinking in cash and
so if you're storing your money in cash
you're not buying assets like you were
talking about earlier things that you
purchase that give you money the company
that you're talking about building now
the company that I built those are
assets apartment complex and asset
potentially there's actually some
complexities there um but buying into
the stock market right assets so so if
you're thinking in cash and the cash
Supply is being inflated then your
buying power is going down so going back
to your point about the poor getting
poor so we're pulling down their buying
power um and then also just the way that
you start thinking like an entrepreneur
about like I don't have the upfront
Capital this is another mistake people
make oh that's okay for people that are
already rich they can do things that I
can't do but you weren't thinking that
right so you I'm sure went to people and
they said okay cool give us up money you
didn't have it so you go on to the
person but because you keep going until
you find the person that's like okay
word like come in throw your party I'll
take half up front you even find
Partners again paying them in equity
you're paying them with future money
that you don't currently have like that
one thing alone is a huge habit
difference between people who think I
trade time for money right I go and I
work I give you my time you give me that
money nothing wrong with that and it's
it's the path that most people will take
right but for people that really want to
understand what we're about to go
through because this this could be
nothing and a year from now we look back
in this video and we think phew thank
God that it didn't get as bad as it
could right but we could also be headed
into a recession like a deep Global
recession that could last a year or two
years or more sure uh so getting people
to think more entrepreneurially like
you're laying out in the story I just
want to to orient people to the fact
there's nothing necessarily different
about you anybody can think like that
and get the kind of results that you end
up getting I think it kind of goes back
to what you were saying uh it wasbe
before we started rolling where you said
you were dumb and so you asked a lot of
questions for me I said I was dumb
because I don't really care about risk I
never even looked at risk for me it was
opportunity that's all I saw and and it
was just a way for me to get started and
you know I was called stupid and dumb
all the time and nowadays if I'm not
called stupid it's probably not a crazy
enough idea and and so that's kind of
exactly what you're saying I started
making this little bit of money and it
started to grow and had some cash in the
bank and now
I started reading these books and they
talk about investing in real estate I
was like all right let's try this so I
was uh 19 at the time and I started
looking at real estate investment
properties and again I didn't know what
was normal and I took my MCAT on August
22nd August 23rd I closed that my first
real estate investment property it was a
small 1,000 ft condo out of foreclosure
and I bought it for 8 Grand as a total
price of the condo and that's insane
that same condo sold for 150 Grand just
a few years prior wow and that condo
then started paying me $600 a month and
now you know you talk about extending
time for money see in the beginning I
didn't understand that concept because
when I was working in this event
planning company it was just me if I
didn't do everything nothing was going
to happen but then this real estate
investment property changed the way I
thought about it because now all of a
sudden this asset I bought this condo
it's paying me money and I don't got to
physically go host a party I don't got
to go flip pretzels I used to work at
onn's pretzels as well I don't have to
go and do something something it was
just there I owned it and now this condo
is paying me for just owning the asset
and now all of a sudden I started
thinking different I started to get a
little bit upset because I was like well
why was I never taught about this we're
not taught about investing we're not
tght about financial education we're not
tght about wealth and and that's you
know talking about now money habits well
how the next habit you got to understand
is is you got to be able to ask
questions because if you don't
understand the way the system works
never going to be able to answer or ask
the right questions because the way that
the system works in across the board is
you know in a company you have the
workers then you have the owners it's
kind of like a overlap and sometimes the
workers are the owners some of them kind
of in the center but the workers are the
ones that are now working every single
day you get your salary the owners
aren't working for a salary they're
working for Equity profits so they're
hoping that now the workers will be able
to drive up the profit so now the
valuation of this asset is higher now
when you have this sort of inflation who
Hurts the Most the workers your incomes
don't grow to keep up with inflation
however the asset value which is now the
value of the company disproportionately
gets benefited because now this money
gets printed it gets created out of thin
air it flows into assets and that makes
the valuation of companies for example
to go up so now you have these two two
things right you have the workers and
you have the owners this is how so it it
it depends on what companies get that
money how did they decide so this is the
first time ever that they decide to buy
a company stock how did they pick B Bond
sorry uh
so who how does the FED decide I have no
idea how they decide however let's think
of it this way so stimulus checks went
out right people get cash you feel
wealthier in the short term your bank
account goes up some people took this
cash maybe they paid off some debt maybe
you go and invested this money but a big
chunk of people took this cash and then
they went out and they spent it well if
you need this money well yeah and you
you had this whole range right some
people really needed it some people went
to uh Walmart they went to Kroger they
went somewhere and they bought groceries
but still that money where did they go
they went to Walmart Kroger and those
those companies saw bigger profits
because as money was printed it goes
into the hands of people and then it
flows to the corporation other people
went to Louis Vuitton they went to Gucci
they went to the Apple Store they went
to Lululemon again who does it benefit
so the money was printed out of theer
somebody has to pay a price for that the
regular person average people they have
to pay now higher taxes which is
inflation in this case it's not a true
tax they'll be confused by that but the
invisible tax it lowers your buying
power lowers youry power the tax and
then where does all that money flow it
flows now to whatever buy the wealthy
the rich and so now what do you want to
do you I go back to that system you the
workers and the owners everybody in
America should be a business owner
however not everybody should be in the
business of starting a company and not
everybody should be in the business of
operating a company so what does that
mean well you can be a worker and an
owner right you this concept of equity
you have to understand this because
wealthy people are working for Equity
they're not just working for a salary
and so what you want to do now is you
want to understand okay I'm working
every day to get paid now what are you
doing with the salary either you can
take the salary and go out and spend all
of it or you can take some of the salary
now and work to build equity maybe
that's in stocks maybe that's in real
estate maybe that's in your own company
so if I buy stocks I'm buying Equity
You're Building Equity you're literally
buying ownership in companies if you go
out and buy a share of say McDonald's
you become one of the owners of the
McDonald's company and now when the
McDonald's valuation goes up you get to
share in that because the price of your
stock the value of your stock goes up
they there's just a psychology that ends
up happening when Empires end up
declining and some of those same things
are happening right now so the fact that
we're so overleveraging from again I'm I
I am the lay person I'm educated enough
to know that I'm on the right track um
that directionally what I'm about to say
I think is very accurate that we are
overleveraging our position as the
world's Reserve currency that the fact
that we have
created so many new dollars I forget
with the percentage but it's absolutely
ridiculous in the last like whatever
five or six years we've created
something like 40% of all the dollars
that have ever existed in the history of
this country so it's like that's so
crazy and so when I think about
appealing to the average person hey
please be thoughtful about who you vote
for we want to be careful as a society
the problem is when everybody has grown
up being the reserve currency for as
long as we have and rallio has a a map
of the changing world order it goes in
six stages every Empire ends up
collapsing there's only six stages stage
six is Absolute Total collapse he puts
us somewhere around stage five and a
half so it's like we're we're just
headed down this path and when he looks
at what are the indicators of that it's
the fighting inside of a country he
talks endlessly about how we treat each
other I I saw him backstage uh literally
like weeks ago and you know I was like
Hey because we were in Dubai and I'm
just like whoa Dubai is like popping off
I'm like you're a guy you travel around
a lot like how do you think about where
to go you know where's going to be the
Economic Opportunity and he said Tom
it's all about how people in the country
treat each other and I was like that's
so interesting you mentioned earlier
that we're colliding internally and
that's part of the weakness I think it's
a multi-prong thing part of the weakness
you and Ry are saying the right thing
we're just we're not treating each other
well and we have to be very awful but
the other part is what you're bringing
up now that you have faith in that maybe
I have a little bit less faith in which
is I don't think I'll get there let me
bring this all together I don't think
that we're going to make the wise
decisions that we need to make unless
there's a uh enough suffering because
what ends up happening is when you look
at the the way that we're going it is
more and more uh rich or evil companies
making money like they're evil companies
need to pay their fair share all this
stuff not understanding that the the
miracle is not the redistribution of
wealth the miracle is companies creating
something that people want badly enough
that they pay money this is how we've
pulled people out of poverty production
by creating something that's amazing and
so what I'm worried about is there there
has become an attitude uh because things
been so well for so long you said for 50
years we've been in a a declining
interest rate environment money is easy
to get you can finance things on debt
and that's fine because the the rate is
going to go down like what could be the
problem now in the moment where the
rat's going to start going up the
mentality of people has been formed over
50 years of it's all good it's raining
money everything is well and so now
people go into oh the miracle isn't like
all this wealth we've been able to
create create and isn't this amazing and
look at how productive we've been it's
like oh people that are succeeding like
this is evil and what are they doing and
so now when they vote they're voting
from that perspective and so I they they
will change their tune but it will
require so much pain and suffering for
people to realize oh [ __ ] like we've
been barking up the wrong tree and so I
to to say it in a single sentence I
don't think people are going to vote in
the uh auster way that you want them to
vote which would be fiscally responsible
until they are in agony well I think
you're 100% right on that and I I
think many people are emotional and one
we don't understand money now what I'm
saying is for the first time people have
access to real Financial education with
ease YouTube podcasts newsletters we
have access to this information
complicated man and you're right people
are generally emotional and this third
issue is we are becoming a two-class
nation which is the probably the biggest
issue causing the divide and what I mean
by that is you have the rich and the
poor but in order to have a healthy
Society you need to Rich the poor and
the middle class and the middle class is
completely being decimated by the system
and you know going back there's a saying
it's like uh tough times create tough
men which create Good Times which create
soft men which create bad times
something like that I probably butchered
it but yeah pretty close and this is
kind of what we're seeing yeah you know
we became this country because of tough
times we fought for it and then things
became great and then we grow up in the
times where money is easy everybody's
Rich you can Finance whatever you want
buy as much Gucci as Gucci as you want
we are a consumer Nation we become fat
as a society We Want It All We don't
want to have to work for it we become
lazy and and things are seems great like
I can have anything I want that's going
to have a Breaking Point
eventually that party will stop and when
that party stops you know it's what will
we do guess what we still have a ability
to learn here we're still the most
creative place and hopefully we stay
this way where we are the Hub of
Entrepreneurship in the world we are the
Hub of business innovation in the world
we are the Hub of production in the
world we have to stay that way if we
want to continue to compete in the world
and I'm hoping that will happen I'm I'm
an optimist like I I have a lot of faith
because you know people here are we are
still I mean you think of all the major
companies in the world this is we are
the producer of them and we provide a
lot of benefits to encourage
entrepreneurship and I hope that we will
continue to do that and there's a lot of
people now thankfully on the internet I
mean people around the world look at
what we put out on the internet to learn
from us uh you know like I was invited
recently to a couple shows in London I
was asking about their demographics and
all that stuff and they're like yeah you
know most of the people here in the UK
watch us produc us content creators and
that was a really interesting thing to
me I was like what do you mean cuz I you
know I I don't consume like that much
content I I really try to just learn my
own ways and I don't really follow
what's going on in the world like that
and they were like yeah you know we have
some creators here but most of the
people here are just watching people in
the US and I realized it's not just the
UK it's many people around the world and
so we have a lot of Educators here we
have to be now the consumers of our own
understanding okay we have to be
creators we have to be innovators and
then that also goes to our education
system where we can't just produce
Factory workers anymore we have to
innovate our education system and we I
was going to say we suck there but we
have to really fix that up I mean we
have to really encourage Innovation we
have to
encourage the ability to think freely
because the advantage that America has
is we became Who We Are by thinking
differently than everybody else it's
kind of like that Minority mindset
message because we didn't follow what
everybody else did I mean we have a
completely different like economic
system tax system than the rest of the
world
we cannot be a follower we have to be a
leader and in order for us to do that we
have to continue innovating and thinking
differently from the
People level to the National level and
you're right you know we have a long way
to go but we are going to have to if we
want to stay competitive all right so I
want to get into the specifics on that
so if you were a benevolent dictator and
you were going to say okay here's what
we have to do here are the principles
whether it's you know fixing education
or what have you what what do we need
what are a small handful of things that
we need to do to continue to lead to
innovate to learn the lesson that we
need to learn well I think part of that
is is just straight Financial education
and it has become much more accessible
but we have to know how to learn right
well so let's not move off the first one
so what the in fact I'll let's get them
out so Financial education that's the
first one we're going to circle back to
that to a couple key points that you
think people need to learn about
financial education uh what else so what
you're talking about now as a society
what do we need to learn to be yeah like
so the we started this episode by saying
look before we turned the cameras on you
were like thank you so much for having
me back on I'm getting really paranoid
that people are going to get really hurt
by what's happening they don't
understand it the triangle of Doom uh
they they just don't understand how
money works all of that
so we're going to like help people get
themselves out of this mess it's going
to be partly Financial education what
else the financial I mean if we talk
about the financial side it's the fin
not just Financial we're going to come
back to that I want to know if you were
the benevolent dictator and we know
America needs to continue to lead you
were saying that you know all across the
world people are listening to American
Educators which I have a hypothesis
about why that is that I'll round two we
like the only country that until
recently was not into the tall poppy
syndrome so in the UK in Australia like
if you stick your head up and say I can
do something amazing people just SWAT
you down and it's like whoa I don't want
to try to be cool I don't want to try to
do anything amazing because people are
going to make fun of me when I was a kid
100% I was just like I'm going to be
rich like I was so like I'm going to go
do amazing things but I think even all
of that like Innovation right the idea
of the next one yeah Financial education
innovate I think that is a part of
financial education understanding the
ability to lead management all these
things are all a part of financial
education because now if we talk about
how to succeed as a country it's
Financial education and that can be BR
if I mean look I think we need health
education I think we need to understand
how to be spiritually fit I think we
need to know how to be mentally fit and
then we need to know how to be
financially fit these are the four
aspects but now if we talk about now if
we're on the economic side how do we
produce entrepreneurs how do we produce
smart investors how do we Pro produce
people who know how to save their money
how to invest their money that's the
financial education part but what stops
so many people from being able to do
that well I feel depressed or I'm
anxious I don't think that I can do it I
don't have the confidence to go out and
do something I don't believe in myself
I'm surrounded in an a toxic environment
if if you grow up look I used to guest
teach in Detroit Detroit public schools
and these kids are smart hardworking
kids I was actually just talking to a
guy last week were you teaching Finance
I was teaching life skills and part of
that was Finance but it started with the
core of just building some confidence of
thinking bigger because I was talking to
a guy uh he came to my office last week
he grew up in a rough neighborhood in
Detroit and uh we began talking and he
was like look I want to I want to get to
somewhere else in my life he's like I
got to where I am today because I was an
athlete I didn't want to be like
everybody else in the neighborhood I
started working out and I became a good
athlete that got me through education
now I work an okay job I own a lot of
shoes but I don't have much else like I
don't have any savings I don't have any
Investments like I don't even know what
the stuff means I want to do something
different so now I start talking to him
and what he tells me it's like I grew up
with this mindset of I don't care about
being rich I just want to get by that's
all he wanted M and now he's like he he
was telling me he read this book called
the millionaire mindset I think that's
what it was and what he was like he's
like that book talked about
how people who say I don't want to get
rich are lying to themselves and you
have to say that you want to become
successful that way you can actually
achieve more because we create these
taboos around money but like what
stopped him it's he had this limiting
mindset that because of where I came
from because of all I saw somebody like
me can't do it then he got a little bit
of a taste of wait you're telling me
that I can achieve more because he never
had been exposed to that before and now
because he just read or listened to an
Audi book that said that now all of a
sudden he's trying to put himself out
there we happen to just talk in the gym
and now you know he's like dude like can
you please give me some sort of guidance
and now I started talking about
different things that he could do and he
was like dude I I cannot thank you
enough because it's just like it's not
even that I did anything it's just he
got a little taste of what's possible
trust me this is the entire reason that
impact Theory exists so you're in
Detroit teaching I was in Compton
building a company and I'm encountering
all these people very bright some of
them look there were morons just like
there are anywhere else but there were a
lot of incredible people and I began to
realize intelligence is evenly
distributed but mindset is not right and
because they have the wrong mindset
because they're asking the wrong
questions because there was one kid who
I was like bro you're so smart like why
aren't you out there pushing yourself
and he said oh my mom told me that the
world doesn't want people who look like
me to succeed right and I was like that
is the worst [ __ ] advice you've ever
heard in your life and I'm like I've
become obsessed with the Kobe Bryant
quote that booze don't block dunks you
can get so good at finance that no one
can stop you like you can just out
invest people and this is where I get
obsessed about okay there are a cluster
of things that mindset is certainly one
of them Financial education is certainly
one of them the education system in and
of itself is certainly one of them the a
self-loathing thing that's become so
prevalent in America is one of them it's
like I what I want for people is for
them to feel like I felt in the 80s now
I didn't grow up with money uh we
weren't poor I used to think we were
poor but now I've seen real poverty we
weren't poor but we were lower middle
class and so I couldn't have the things
that I wanted to have I had to start
working when I was 12 years old to buy I
had to buy myself a Nintendo my parents
couldn't or wouldn't buy me one and so I
took a job in a door Factory at the age
of 12 so that I could buy a Nintendo now
when you come up like that you learn a
couple things depending on how you're
wired for me what I learned was I really
hate work but it's really cool that I
can go do something someone will pay me
for it and then I can get the things
that I want so it gave me a sense of
self agency then as I got older I read
my own equivalent of the millionaire
mindset it wasn't that but things that
ended up teaching me oh whatever you
dream for you're going to fall short of
so you better dream really [ __ ] big
and then go just relentlessly acquire a
skill set in order to get good enough so
in the 80s I just believed I could
become anything I wanted but I was going
to pay an extraordinarily high price to
get there I was going to have to figure
it out I was going to have to outwork
everybody I was going to have to go hard
nothing was going to be given to me
nobody owed me anything I was going to
have to head down and just learn to
fight and that sense of like Hey You can
have anything you want this world is
amazing it's your oyster let's go but
let's go means let's go get strong let's
go get smart let's go get educated let's
like figure out what you have to do but
booze don't block dunks you can get so
good that even if people want to stop
you they can't stop you now if I could
give people that
mindset an overwhelming number of are
still going to fail I get that but you
create an environment like the US where
man really amazing people from all over
the world want to come here so that
they're not strucken down by other
people who don't want to see a tall
poppy they don't want to see somebody
stand up above other people they're
cheering for it they want to do it
themselves and it's become a meme this
really pisses me off it's become AE the
whole idea of people voting against
their own interest because they're just
a temporarily embarrassed millionaire
yeah that that was my entire youth until
I was in my late 30s I acted like the
temporarily embarrassed millionaire and
it led me to becoming an actual
millionaire if you see yourself as like
this is all you're ever going to be and
you're stuck then you won't do the
things you need to do to at least have a
shot a lot of people are still going to
fail I get that but man if you you think
oh if I it's what I call the only belief
that matters if you believe if I put
time and energy into getting better at
this thing the world will still punish
me rich white people are going to take
it away I will never get anywhere that I
want to go you won't do the things but I
think that goes to that this is really a
mindset think of like like I don't even
know if it's self-confidence or a little
bit of arrogance or a little bit of
ignorance where like for
me I you know you said that a person
talked to their mom told them someone
like you can never make it the world
doesn't want someone who looks like you
to be successful and you know what you
said that was the worst advice I think
that's the best advice that you could
get because that makes you well at least
because I heard some things very very
similar and for me that put a fire on my
butt where I was like I'm going to prove
you wrong I'm going to prove you wrong
I'm going to give you a middle finger
and I'm going to go do what I want
because I heard did your mom tell you
that my mom told me that somebody who
looks like me will never be the CEO of a
company so I need to shut up and go
study to become a doctor wow I wish the
world were more like you I I mean the
thing is I always had just a little bit
of a hard head and my mom said it out of
love like I love my mom my mom is it was
for because I was such a like I was very
rebellious but not in a bad way like I
wasn't doing drugs and drinking and
doing things like that I was like trying
to start businesses and in a traditional
Indian
household like my house like my parents
were like you have to become a doctor
that's it like from the the
since I turned like one or two years old
they told everybody from America to
India just PR is going to become a
doctor for my entire life that's all I
heard me playing football was a
distraction from me becoming a doctor me
doing a newspaper route was a
distraction from me becoming a doctor me
wanting to go to the gym was a
distraction all these things were
discouraged I told my dad I wanted to
start investing in real estate told me
you're stupid focus on your studies and
then when you're a doctor you can do
whatever you want I want to be clear
though that was all terrible advice it
happened that you pushed back against it
and prove them wrong but the advice
because most people listen the advice
was God awful but I think it's like you
know we have to be able to channel pain
we have to know how to do that because
pain creates purpose and pain can create
purpose it can and we but you have to
like I mean I don't know if it's
confidence or a little bit of again like
I was saying arrogance or ignorance
where you have to we have to want more
from ourselves eles as people we have to
know that we can produce more we have to
believe in ourselves I mean I don't even
know if it's belief because I never
like I if I if I look back to like my 17
18y old self and I remember telling
myself like dude if one day I ever made
$100,000 in a year like man I'm going to
be flying in private jets I'm going to
have all like I'm going to have all the
money in the world and then you do it
and I was like wait like this was a
dream like one day then they did it and
it's like well I'm not flying in a
private jet I don't have all the nice
stuff but I'm pretty surprised that I
did it and then you surpass that and
then you take it from $100,000 a year to
$100,000 a month and like I can't
imagine like when I was like 17 to think
that somebody could make that in a month
and you're like wait that is possible
but in order for that to be possible you
just have to like you you have to have
some sort of taste and belief and that
belief I don't know where that comes
from and I don't know if it's just like
you have to just be like you have to
have this like I don't know the best way
to explain it where it's like dumb
belief you got to want something really
bad that you just nothing
like science doesn't add up like 2 plus
2 is four but you're telling me that 2
plus 5 is 44 here's what people have to
understand the human animal is designed
to grow and get better it's it's
cultural transmission of ideas that's
how we become the dominant apex predator
we're not smarter sorry we're not faster
we're not stronger we're smarter and so
it's the ability to learn this is why I
call it the only belief that matters
everyone needs to believe the following
statement if I put time and energy into
a specific thing I will get better at it
once you believe that everything else is
going to take care of itself you're
failing you're not making as much money
as you want you don't know Finance
whatever go learn it and once somebody
is like oh okay I'm going to go get good
at this thing I didn't need to be born
good at this I don't need to have a
natural inclination to it I have a goal
and my goal makes demands if you're Kobe
Bryant you have to practice basketball
why because your goal is to become the
best basketball player of all time if
you're Kobe Bryant and your goal is to
become the best basketball player of all
time and you spend your time swimming or
studying math you're never going to get
there so your goal makes a demand so
your parents weren't wrong if you wanted
to become a doctor then going on a paper
out didn't make sense what they weren't
realizing is you want to be an
entrepreneur and so that was just a
misunderstanding of what your goals were
but you both were right in the sense
that hey figure out what that thing is
that you really want to get great at and
then go do that thing I I think that the
society also molds it because like it
wasn't that what's it m so for example
you said my parents like what they
didn't know that I wanted to be an
entrepreneur and I don't I think it's
more that they didn't understand that
other opportunities were possible
because when I said I wanted to be an
entrepreneur that was like thought you
were stupid there was a horrible thing
but I think that you know whether it be
your parents your cousin your family
your friends or Society we we Encompass
ourselves into this little box that this
is what's possible for me somebody that
grew up like me somebody who's good at
what I'm good at somebody who looks like
me somebody who comes from my background
this is my possibility but what the
opportunity we have here is the whole
table the whole world is your
opportunity but you have to believe that
first and that means then you're going
to have to go against what you know
maybe what a lot of people are
pressuring you maybe you have support
maybe you don't and it's it it doesn't
really matter because what you need is
up here that belief in yourself to now
do whatever it takes because for me it
started with listening to motivational
tapes like I listen to icomics blueprint
to success so many times that I knew the
words to like every single word of that
CD
and I was like wow like I can wake up
earlier I might not be the most smartest
or whatever but I can work harder than
everybody else because that I can
control how did I learn that because I
started this motivational CDs and and I
tell everybody to listen to it and I'm
like yo did you listen to it they're
like yes it's basic stuff I'm like oh
okay like you already knew this then I
read a book called Rich Dad Poor Dad by
Robert Kaki the first time I ever got
exposed to financial education and I was
like holy moly like this what the most
important thing he taught you in that
book well the like cover to cover like I
you got to understand I didn't grow up
with any like I didn't know what
investing was I never heard of passive
income I didn't know you could invest in
real estate like I was so naive I like I
didn't know anything in that book that's
my beef people don't know how the world
works and this I was as guilty of this
as anybody but going back to the
triangle of Doom this is the so as a
refresher triangle of Doom interest
rates economy yeah and
um sorry which one am I forgetting
interest rates economy and um inflation
and so you've got if people don't
understand how that works they don't
understand how to move in order to
either survive or take advantage of the
opportunities that are going to present
themselves but it starts with
understanding how the system
works understanding the system and then
not blindly trusting everybody like you
said you know you have distrust look I'm
on board with you I don't really trust
many people I don't trust what the
government says I don't trust what the
Federal Reserve Bank says I trust myself
but you got to have take everything with
a grain salt now why do I say that
because okay we'll talk about interest
rates just for a
second The Mortgage Bankers Association
put out a statement in 2023 and they
said that by the end of
2023 that they expect mortgage rates to
fall to like the low
5% the National Association of Realtors
said something very similar they said
that by the end of 2023 they expect
mortgage rates to fall under 6% I forgot
the exact percentage but it was under
6% why why what is their intention you
have a lot of Mortgage Bankers and
Realtors out there saying what the heck
is going on why aren't people buying
homes why aren't people getting
mortgages and so now you have these I
mean these are Big agencies saying calm
down it'll be just
fine what is their justification
mortgage rates are too high right now
people can't afford homes so they have
to go down again analysis that's their
analysis versus the data now if you dig
a little bit deeper this is the
financial education aspect that I'm keep
talking about now you can answer this
question yourself instead of just
trusting somebody else I mean I'm not
saying trust me I'm saying learn it so
you can figure out how to do it yourself
because I can be wrong you can be wrong
anybody can be wrong but at least you
know how to come up with their own
analysis what affects mortgage rates two
things the interest rate that the
Federal Reserve Bank sets and inflation
when the Federal Reserve Bank raises
interest rates that makes borrowing for
Bank more expensive which means they're
going to have upward pressure on where
you know what they have to sell it to
you like if you if you sell it a hat for
$10 and then the cost of the Hat goes up
to $1 now the store is going to have
upward pressure to sell the hat for 20
as opposed to 15 right because their
cost is going up so when the Federal
Reserve Bank raises interest rates
that's upward pressure mortgage rates
the second aspect is inflation why
inflation
because well when inflation happens this
is a little complex but when inflation
happens people are less people are more
worried about the dollar and when people
are worried about the dollar they're
less likely to loan money to the
government this is called a treasury
bond so in the financial world there's
something called the risk-free rate the
risk-free rate is if I loan money to the
government through a treasury note or a
treasury bond the return that the
government gives me the interest is
risk-free because we expect the
government to always pay back their
debts so when inflation happens people
are less likely to loan money to the
government because they're worried about
the health of the dollar they're worried
about the government which means that
for the government to incentivize more
people to loan money to the government
they have to offer a higher rate so when
inflation happens people are worried
about the dollar people are worried
about the government the risk-free rate
goes up interest rates on government
debts go up if the interest rate on
government debts go up that's going to
push up the rates on mortgage bonds as
well because now your mortgage r return
would naturally have to be higher than
the risk-free rate because when you if
you're loaning money if I'm loaning you
money to get a home in traditional
Finance that's a riskier investment for
me than me investing my money into the
government because that's risk-free so
you have to give me a higher rate of
return than what I'm getting from the
government so higher inflation higher
treasury yields pushing higher mortgage
rates so now what is the analysis
inflation is higher than expected it
looks like it's going to be around
higher than expected okay that's higher
treasury yields higher pressure on
mortgage rates the second factor is
Federal Reserve Bank interest rates well
the FED keeps saying that they're going
to keep raising interest rates now of
course all this can pivot they can pivot
tomorrow but based off of this
information this tells me that there's a
lot of upward pressure on mortgage rates
mortgage rates are around 7% right now
but you have the National Association of
Realtors The Mortgage Bankers
Association
two very credible sources who are like
the the source of information for
realtors and bankers saying don't worry
mortgage rates are going to fall by the
end of the year this is why that
education is important yeah we're
already so $2.3 trillion dollar
according to Fortune Magazine have
already been scooped out of the US
housing market alone so I'm very shocked
that in the face of $2.3 trillion doar
of losses that people are pretty chill
got some more and that that I found
super disturbing um we've
got um month-over-month housing prices
have declined for the first time since
2012 um you've
got um home builder sales have collapsed
by 46% home buyers cancelling 20.8% of
their construction contracts like it
seems like we're in the middle of a
housing reset of pretty aggressive
proportions so do you think people are
um willfully lying are they blinded by
their own narrative are they just trying
to be optimistic to keep people from
panicking this feels a little bit like
uh masks don't help you're fine because
we had a shortage in hospitals and then
once that shortage was over it's like
nope actually you do need
masks you know that question I think
it's it's uh it's like are they Sinister
or are they stupid that's the question
Sinister stupid stupid or dwide and
naive right and so I mean I think that
I'll leave that up for anyone watching
this or listening you come up with your
own interpretation right do you have you
don't have to tell me but do you have an
interpretation I don't know if I do
because I go back and forth because it
just doesn't but I think my wife talks
to me about this I think I have a very
trusting personality by Nature I have
gotten scammed and screwed over so many
times interesting but I I refuse to give
up this idea of wanting to trust people
now yes that's on me I get that but and
my wife is like dude you can't keep
doing that and I'm like
look if you scam me you screw me over
I'm not going to do business with with
you again sure you hurt me but do I want
to give up my trusting nature and do I
want the jagged personality or whatever
and you know I go back and forth I don't
have a you know a good answer on this
because I'm still trying to figure that
out about myself give mind I don't think
many people are Sinister my gut instinct
is that's going to be the most rare I
think people this is exactly how it
plays out in
business certainty intoxicates people to
be a good leader you have to give people
certainty that's one of the most
important things you do as a leader to
give them certainty you have to develop
certainty in yourself to do that you
need a narrative The Narrative allows
you to connect dots so as we talk about
the triangle of Doom it's like we're
telling a narrative about how those
things flow but the reality is if we
could predict it precisely we'd be
gazillionaires so nobody can really
predict it but you have to move you have
to do something and so you look at the
triangle Doom or whatever you look at
the signs and the housing market and you
come up with a narrative and there are
incentives if you're a if you're in a
certain governmental body or whatever
there are certain incentives for you to
since you don't know to create a
narrative that leans one way or the
other and so um if you're a YouTuber
there's an incentive to uh do Doom porn
because that's going to get a lot of
clicks and so even if you're
like I'm I I'm not being Sinister
because there really is something over
here but it's like I'm also nudged
because like I have an incentive so I
have a feeling to give themselves
certainty to give other people certainty
they begin telling themselves The
Narrative that they happen to be ever so
slightly incentivized to tell I don't
think they're doing it on purpose but
you have to have a narrative that's
going to allow you to move yeah so I end
up there it's a combination of doey
optimism and uh
willful not willful they they have to
tell themselves a narrative in order to
be effective in life yes and that
narrative gets a little rose-colored and
then the catastrophic mistake that
entrepreneurs make that I've been guilty
of a gazillion times you forget to
question your narrative yes you get so
busy telling other people what it is
telling yourself that you forget to seek
disconfirming evidence which brings in
the last piece piece of the puzzle which
disconfirming evidence feels super bad
it does not feel good when people are
like you're wrong and especially now in
the days of the internet you're wrong
usually is said you're a [ __ ] you're an
idiot or Worse yeah and so then you're
you really want to defend yourself which
means Defending Your narrative which
then you entrench yourself and it
becomes Dogma to put one more point in
this even Einstein who gave us the
theory of relativity could not in the
later part of his life become one of the
people pushing the envelope of his own
theories because he got trapped in his
own Dogma I think you're 100% right on
that and like it g that's I mean that's
what I've been experiencing too like so
on YouTube let's just talk about that
and we can expand other places if you
don't have a very attractive title no
one clicks on it it goes into the
YouTube Cemetery no one's going to watch
it which was a huge like pull on my
heartstrings because I'm like why do I
have to title videos like this or come
up with these thumbnails and the reality
was like look if you want people to
watch your stuff like you know my team
was like you know you have good content
if you want people to actually watch
what you're putting out you got to be
able to play in this game and that was
one of the reasons why I created my
briefs media newsletter because now I
can avoid the sensationalism I can avoid
those titles and avoid all that
clickbait because in the newsletter you
get all the news that you want like our
Market briefs email you get all the news
you just click on the email doesn't
matter like our subject lines are like
black cups are cool you know know it's
like you click it and then all the
information is there and now we can give
you cuz my goal is is unbiased I want to
give you the data so you can create your
own analysis and understand what's
happening because nobody else can do
that most media companies don't have the
ability to do that because they have to
get you to click and that's all they
tell you and I want to change that and
so for me it's like okay well if I want
to get you to hear about me on YouTube I
got to I got to come up with the title
but my goal is to make the content
educational so you learn and then say
hey look if you want more go to market
breef briefs. and you can see our emails
and and join for free and get the news
in your inbox and you don't have to
worry about it
and I think when it comes to incentives
though like what you were saying where
we kind of forget or or we we get put
into a box and then we ignore all the
other things or we have no no reason to
understand and what I mean by that is if
we go to like the
2008 crash right what led up to it well
lot you know we like to point fingers
well Mortgage Bankers were
making um just bad loans they were
loaning money to people who shouldn't
have gotten it now if you're a mortgage
Banker what's your incentive my
incentive is to make loans I'm on
commission I want to make us that many
loans as possible if you got a 600
credit score you can't qualify this how
about to give you this if I'm going to
get a commission okay so am I a bad
person because I'm trying to make money
and take care of my family well then
it's the bankers the the CEOs of the
company that are that are ruining it
well what is their incentive their
incentive is to increase the earnings of
the company their incentive is to make
sure that they can issue more loans than
their competitors so are they evil for
trying to increase the value of their
company increase the share price well no
it's the people because they should have
known better they shouldn't have gotten
these loans they should have known that
if you're making $75,000 a year you
can't afford a million dollar home well
how many of them are financially
educated how many of them know the
basics of of how much mortgage they
should buy how to save their money how
to invest their money like none of us
have grown up learning about that so is
it their fault well it's the
government's fault they should have
regulated it do we want more regulations
so now it's like everybody's going to
have their own incentive everyone's
going to have their own reason for
wanting to do something and this is why
I go back to the financial education
aspect like we can point fingers all day
long that is your fault their fault
their fault at the end of the day if you
cannot protect yourself
it doesn't matter you have to know how
to protect yourself and that Shield is
that Financial education because now
look your Banker in the business of of
making loans they want to make as much
money as possible it's reality the
realtor wants to sell you a bigger home
they get a bigger commission check the
car salesperson they want to sell you a
bigger car the corporation they want to
sell you more stuff your company wants
to keep you employed there this is the
incentive you can hate it love it or
understand it and the find Financial
education is understand it that way now
you can at least make an educated
decision of what type of home you want
to buy and that's what is lacking and
this is where you know kind of for me it
keeps coming back to the same thing
because yeah everyone's going to have
their own incentives politicians are
going to have incentives to get votes
they're going to want to say things to
get votes corporations are going to want
to say things to get you to buy their
stuff sales people are going to want to
push their thing and everyone's going to
have an agenda and now your agenda needs
to be protect yourself protect and you
know we focus on the financial education
side but you can apply this to every
aspect of life but you got to know how
to protect your wallet and that that
only I mean you cannot tell me that your
Banker is going to have a better
protection of your wallet than you are
you cannot tell me that a corporation is
going to protect your wallet better than
you can you cannot tell me that most
people don't know how to protect it
though that's the thing that scares me
and we're relying on the government to
tell us what to do and so this is where
like what do we do look and that you
know I I keep going back to financial
education that's why I'm an advocate for
that because what I'm saying is dude
look you can rely on the government all
you want maybe they'll help you but I do
not want to rely on them I want to rely
on myself my own Financial education
don't rely on like I'm not saying you
rely on me I'm not saying don't rely on
a random guy on YouTube learn and what
you said I'm 100% in agreement with
listen to people who disagree with you
listen to both sides of the aisle
because if you know if you agree with
one thing and and social media amplifies
this you go down a rabbit hole as soon
as you start learning about one thing
whether it's money health or it doesn't
matter you're going to get bombarded
with only that one thing because that's
how the algorithms work you go deeper
and deeper and deeper down the rapbit
hole and anybody who disagrees with you
is stupid but if you really want to
build intelligence you got to break out
of the algorithm come out of the rabbit
hole and I'll study this side too and
maybe they're wrong and maybe you learn
you realize wow they're even more wrong
than I thought or maybe you have a more
balanced opinion and this is where real
learning comes into play because we have
to learn how to learn and we're not
taught how to do that how do we learn
how to do that to hear more about Ray
Dio's warning on the upcoming recession
which we're almost certainly already in
watch the full episode here talk to me
about the three forces that you see that
are influencing this moment we've got
Banks collapsing US dollars under a
attack uh looming recession what