Kind: captions
Language: en
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 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 purchased
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 right 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
poorer 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 from
money you didn't have it so you go on to
the next 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
right 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 in a year from now we
look back on this video and we think
whew 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 was maybe 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 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 so that's kind
of exactly what you're saying I started
making this little bit of money and it
started to grow and it has some cash in
the bank and now I'm started reading
these books to 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 I'm
a first real estate investment property
it was a small 1 000 square foot condo
water foreclosure and I bought it for
eight grand it was a total price of the
condo and that's insane that same condo
sold for 150 Grand just a few years
prior and that condo then started paying
me 600 a month and now you talk about
staying your 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 Auntie Anne's pretzels
as well I don't have to go and do
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 start 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 taught about financial
education we're not taught 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 they're 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 the 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 not 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 things right you have
the workers and you have the owners this
is how the customer works 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
uh Company stock how did they pick Bundy
teeth 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
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 the money where do they go they
went to Walmart Kroger and those those
companies have 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 that benefit so the money
was printed out of thin air 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 yeah the invisible it's not a
true tax they'll be confused by that but
they get invisible tax right it lowers
your buying power lowers your buying
power the tax and then where does all
the money flow it flows now to whatever
you buy the wealthy the rich and so now
what do you want to do you know go back
to that system the other 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 do you know the Wall Street Trapper I
do I've seen his videos with you dude
he's so dope so he talks about if I'm
gonna wear it I'm going to own it yeah
so if I'm gonna wear a Louis Vuitton
then I'm going to own Louis Vuitton
stock yeah and Ah that's so smart like
just be here's the like I 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 taxes 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 right for the fed
and the government to pump money into
the system is to buy assets right so
they're going to buy these bonds just to
keep it really simple this is overly
simplified but they're 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 sure so I buy the
bond so hey now I'm back 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
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 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 background 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 yeah 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 and 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 was the only
way that I knew to kind of start making
some money
um and so it's 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 yeah we're tired time for
money you 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 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 pawn 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 seen it I see it as 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 who didn't have or
his mom is not around he was raised by a
gang 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 guys
have a job most of them raise 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 of you have a bank
account nobody not a single person had a
bank account Jesus man so I was like
what do you 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 one to
ten percent of that check oh God and
then what are you gonna do you're gonna
buy candy you're going to buy pop you're
going to buy a bunch of dumb stuff on
your way up and now you're left with
only half of your check and now what do
you do is it's just I like to call it
Net Zero thinking where if I have cash I
need to spend it I have 500 on a bank
account I got to make that zero if I
have a thousand dollars I gotta 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 the 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 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 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 border living
paycheck 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 gonna
your 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 three to twelve 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 now you didn't say save for
retirement you invest for retirement you
know you talk about retirement Detroit
we're about to face 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 well a lot of people like to do
well pensions are something you only
written 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 raised errors between five and
six percent something in their 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 a
check you cannot out print inflation it
just creates more inflation and so you
know so you had the pension that's
that's essentially gone for the vast
majority 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 awry 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 me but that was
never the plan and so 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 out 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 I'll
be 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 other 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
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'll 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
is 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
gonna see like holy cow things can and
will go wrong so just anticipate it
because that's it's a 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
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 it doesn't matter
match with what you actually want if you
want to become wealthy
question answers yes okay what are you
willing to sacrifice yeah but BMW in the
driveway you got the Gucci belt of 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 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 who want to be rich today you want
to be rich tomorrow not be rich in five
ten years
and so what then what does that do it
then drives our actions if you're ready
to level up all you need to do is take
the steps with the curriculum and
Community that's going to get you there
enroll right now in Impact Theory
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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 I always tell people boredom
kills more entrepreneurs it shows 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 a
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 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 where I felt the most
emotion yeah the the highest positive
emotion you've ever felt positive
emotions 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 never
like you never get excited you never
said I'm like look the only real emotion
that I feel is hunger I get hungry uh
I've changed this that's what a woman
wants to hear by the way if you get
hungry for you baby that's the only
thing I ever feel you might have a shot
yeah so I've evolved since then where
I've you know I'm working on that you
know 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 yes 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
enough 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 the beach but you know it's
it's honestly it doesn't matter where we
are if you're in my basement eating some
whatever pizzas some Indian food and
just laughing yes so now I believe that
to be true of what you're saying it's
certainly true of what I know in my life
so I have had the fascinating experience
of uh I spend Christmas with my family
and my wife's family together and it's
amazing and I've done Christmases in
um middle class home and had an absolute
ball and I've done Christmases in a big
fancy mansion and had an absolute ball
and while doing it in the big fancy
mansion is fun especially because other
people they don't get to do very often
so like oh my God this is so cool uh the
the peak emotion is not higher yeah in
fact the highest amplitude emotion I've
ever had is when I was in high school I
got just in a professional play oh wow
and that meant that I got to skip
calculus
dude I was over them I got paid to be in
a play it was like the craziest thing
ever I was like I can't believe this is
really happening now I have had
millions of dollars show up in my
account like that and I'm telling it was
cool it was neat but it wasn't as neat
as getting cast in a professional play
where I made 75 a week yeah in high
school
there's only so much amplitude of
emotion you're ever going to experience
and I know no matter what I say to
people they're not going to believe me
they're going to have to go through the
same [ __ ] regular role I'm not saying
money isn't powerful money is incredible
I want to make more money because you
can do incredible incredible things with
it right I'm just saying that it doesn't
touch fulfillment it doesn't do the
things for people that they want it to
do yeah and so the reason I say that is
okay you're gonna be bored doing it the
right way it isn't going to be sexy
you're not necessarily going to be able
to flex it's going to take decades but
it will work and it actually addresses
the thing that money is good for which
is money problems right and so you there
are really two paths before you
if you want to be an entrepreneur like
that is high risk high potential reward
high potential failure if you optimize
your entrepreneurial Journey for failure
mode and you're like even in Failure I'm
having a good time you're going to hate
failing don't get me wrong but like that
I'm pursuing something that really
matters to me I'm getting better every
day I'm serving other people and myself
I'm increasing my skill set even if
you're losing that's going to be amazing
if you're thoughtful about your mindset
100 but if you're making all the money
in the world and you're not able to
laugh and play and have a good time and
feel like you're doing something that
matters it won't matter like I this is
where I want to like grab the camera and
start biting it to get people to
understand like dude
set it and forget it let the make an
income work at something that matters if
you want to be an entrepreneur I love
that I can even help you do that well
but the money isn't going to change how
you feel about yourself 100 it is not
going to make laughter more joyful right
it isn't going to make human connection
better yeah it will get you on the
occasional Beach
but
If people could internalize that I think
that they would make very different
choices they wouldn't be so worried
about making all the money right now in
fact let me ask you another question
what do you spend the most money on
my business a hundred percent what do I
spend the most money on my business so
it's like
it's not like I'm out yeah bawling on
you know the beach I could I know but
that doesn't give you fulfillment you
know I did a show uh I was in New York
last weekend I did a show there and they
were asking about the first time I made
a million dollars and I went through
that I was like you're not gonna like my
answer because the first time I made a
million dollars in a year I think I took
home twenty thousand yeah which is a
shovel off right back into everything
back into the business because
you know I was like I'm fine driving a
500 car like I'm getting from point A to
point B I you know I'm getting by just
fine like this is my this is my fun
passion and on your point of you know
the Fulfillment this is what I call my
quadrific theory where there's four
Quadra fit quadrupt so uh what I say
that my theory is if you want to live a
happy fulfilled life you have to be fit
in four aspects of life and just think
about like a triangle we're on the
bottom of the triangle you have to be
physically fit then mentally fit then
spiritually fit and on the top
financially fit if you want to live a
fully Fit Life
physically fit because if you're on your
deathbed it doesn't matter if you have
10 million dollars in the bank the only
thing you care about is being healthy
again to be able to breathe again you
want to be physically healthy because if
you are morbidly obese you can't move
your you're just the only thing on your
mind is to be healthy again you know we
all know the feeling where you're sick
you don't feel good where you can't do
anything the only thing you want to do
is feel better then is mental Fitness
being around people that you love not be
miserable if you're struggling with
anxiety depression if you're not happy
more money is going to make you more
miserable and
we all I mean I I'm so passionate about
this because I've seen this firsthand I
used to not believe in this but I have
seen this so many times where I try to
bang this into people's heads if you
think that making a million dollars is
gonna suddenly make you happy it's gonna
make people like you it's going to make
people want to be your friends it's
going to make you find the love of your
life you are so wrong and you are so far
from the truth that it's going to be
extremely painful for you to learn it
because you have to work on this mental
health as its own aspect of life learn
how to build self-esteem how to be happy
how to manage anxiety how to manage and
fight depression learn about these
things it's his own part of this you
have to be mentally fit then spiritually
fit now this doesn't have to mean
religion spiritually fit I mean finding
yourself purpose what are you waking up
for every single day like you said
you've had millions of dollars at your
bank account you don't got to go to work
every single day you don't gotta go and
hustle yet you do why because you see a
bigger purpose for yourself you have a
reason for you to get out of bed
because if you don't have a reason to
get out of bed more money is not enough
do anything you need to have a reason to
get up want to thrive whether you have
ten dollars or ten million dollars to
want to hustle and then at the top this
is where Financial Fitness has the most
impact the most power and the most
ability to allow you to live a more
fulfilling life because more money is
just putting fuel in the fire it gives
you the ability to do more of the things
that you love to do more things that
make you feel more fulfilled to do more
things that you want to do to give back
more to do more of that
but having more money is not going to
solve your physical fitness maybe you'll
buy you better food or a better gym but
it's not going to give you the mindset
to go to the gym it's not going to make
you feel okay when you're drinking
something healthy you're going to say
man screw the Smoothie give me something
nasty give me some unhealthy food right
I mean it's mental Fitness more money is
not going to fix that well money is not
going to give you a purpose in life it
is its own aspect of life and this is
where you have to understand that yeah
work on all four of these
each one of these requires its own
attention its own nurturing its own
thing like I focus on the financial side
because I feel like I understood that
but that's not the only aspect of life
and this is what I really try to hammer
into you know on my channel to the
people that watch my videos is yeah look
what he's great understand it conquer it
understand how to master your money but
also understand that it's not the only
aspect of your life you got three other
huge aspects where if you don't have
money yeah it's gonna ruin everything
else because if you don't have money
you're struggling about your bills
you're struggling how you're going to
pay for anything you don't know how
you're going to take your spouse on the
vacation to hear she wants you're not
gonna be able to pay for your kids
education they're not going to be able
to do the things that you want
but if you have money and you don't have
these other three things you're gonna
feel miserable
and then what's the point of having
money if you're not happy yeah just go
back to the middle class home and laugh
yep yeah and it's really interesting
because of course when you're in that so
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 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 yeah 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 wanting to
re-get 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 that I don't
want to harp on that too much but like
just getting people to 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 high as long as we have our basic
needs met because 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 uh 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 it that way you
should get older yeah 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 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 bag 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 yeah 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 under plays
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 there money can
do some pretty interesting things yeah
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're talking about
everything going on 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 you
mentioned this the traditional American
dream was being able to buy a home paid
off and now you own a home the reason
why this was the American dream for
anywhere in the world was because when
you pay down your home what are you
building in your home equity
is 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're
Building equity in these companies when
you go and invest in real estate as an
investment now 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 about 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 a
hundred thousand dollars of profit a
year your Equity might be worth two
hundred thousand 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 right now you can come
in and buy more Equity at a discounted
price and this is one of those things
I'm gonna go back to 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
the wealth is built through Equity so
earn a salary do 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 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 or 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 yet for the majority people when
they come up 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 you were
talking about earlier that Covenants
so you were talking about at the time
that there's two kinds of selling
there's selling because you choose to
but oftentimes 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 13 or
higher whatever they put these covenants
right on that is that's what happening
when somebody is getting over extended
with uh either sort of so 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 to a 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 things same things to go and
buy 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 essentially a business if
you're buying an apartment complex
well now you're buying essentially
business and 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
personal financial situation because
they want to see okay if things go bad
what can you do do you have any access
to access 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 stay on 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 five
million dollars to buy it if the
property ceases to be worth five million
dollars then we're gonna basically call
it because I know that's what ends up
happening to somebody in the crypto
Market yeah your crypto is worth a
million dollars and you've got a million
dollars uh borrowed the second that
that's worth a million they're gonna uh
do a margin call sure because now it's
like if it goes down anymore then
they're out money so they literally the
second it drops to the amount that you
owe boom it's gone 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 it's what someone
else is willing to pay for it so instead
of them looking at the valuation of the
property or what they think it'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 lon