Kind: captions
Language: en
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 well your
salary hey you got to raise but you're
actually broker now than you were before
the race because your raise isn't
keeping up with inflation
just read over the next hour-ish you and
i are going to snatch people from the
jaws of poverty you in let's do it man
all right so i have a sincere belief
that there are habits that keep people
poor and that anybody regardless of
where they're born what their
circumstance 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
its core what is money and when you ask
people that you might say it's a 100
bill 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 uh i'm from uh my family smart
india a state of 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 i 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 yeah
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 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 gonna 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 we hammer that for a second sure
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 the 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 dollars you
would think but that's now 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 dollars now if you have a
certain amount 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 of dollars 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 two trillion
dollar loan and then the fed's gonna 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 two trillion
dollars they loan this cash to the
government and now the government got
the two trillion dollars the federal
reserve printed it out of nothing the
government can now take this two
trillion dollars 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 so what happened 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 the database somewhere 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
they 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 poorer 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 you know that
traditional indian houses 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 and as this
we're now getting to the root of how the
rich actually get rich 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 set
assets right because this is how the
government pumps the money into the
system and this was a 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 yeah and
i kept asking until i understood it so
well that i could explain it to other
people sure 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 yeah 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 right 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 right i finally asked the magic
question which is when people
because i actually thought they were
printing money i thought that hundred
dollar 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 oftentimes
government
assets i don't want to introduce the
word bonds and stuff sure but like
they're buying assets from the
government right but the question is
where did those assets get purchased in
the first place and they got purchased
by people right 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 educated enough and had the capital
to buy said bonds just like the internet
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legendary peace
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 it's not happened 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
and it's a way to kind of
track those debt investments well in
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 gonna 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 paid
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 well your
salary hey you got to 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 those 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
a hundred thousand dollars
the bank is going to work with the fed
to print this money and that's how it
gets injected into the economy so lower
interest rates create more inflation
and if you are
somebody 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 the
broadest form an asset is something that
puts money in your pocket a liability is
something that takes money away from
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 dollars 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
three four five percent and now you can
borrow hundreds of millions of dollars
to grow the company and if you can grow
your company by six percent 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 then and for me uh
that good job was i had to become a
doctor i was actually given two options
become a doctor become a failure i could
choose they let you choose no 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 i knew i wanted to become
successful they wanted me to become
successful and 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 one hand in my house 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 pay for our
our lives now we were fortunate i never
had to worry about my next meal and we
were never poor or anything like that
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 even english
class i almost failed my english class
and
i think it was middle school because i
just didn't understand how to write
papers or do all that
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
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'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 didn't even know what real
investing was i didn't grow up around
investors
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
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 a couple of them had
this idea to host teen parties for kids
in my high school well 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 a little hobby
that i started and then i go to college
i'm 17.
i don't know what colleges like we're
supposed to be like in america
um and i go there thinking everybody's
going to be spending friday nights in
the chemistry lab studying i get there
everybody's partying drinking i'm like
none of you guys have any money 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 don't have the the
money to 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 into
the dj 25 went to me to put everything
together but it was a start
and
i started doing that
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 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 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 upfront 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 didn't really care
about risk i never even looked at risk
for me 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 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 talk about investing in real estate
i was like all right let's try this so i
was 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 on
august 23rd i closed on my first real
estate investment property it was a
small 1 000 square foot condo water
foreclosure and i bought it for eight
grand as a total price 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 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 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 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 taught about
financial education we're not talking
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 you'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 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 things right you have
the workers and you have the owners this
is how it goes to work 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 do they pay money to spawn sorry uh
so
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 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 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 that's not a true tax they'll
be confused by that but 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 you're 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 that because the price
of your stock the value of your stock
goes up what is up my friend tom bill
you here and i have a big question to
ask you how would you rate your level of
personal discipline on a scale of one to
ten if your answer is anything less than
a ten i've got something cool for you
and let me tell you right now discipline
by its very nature means compelling
yourself to do difficult things that are
stressful boring which is what kills
most people or possibly scary or even
painful now here is the thing achieving
huge goals and stretching to reach your
potential requires you to do those
challenging stressful things and to
stick with them even when it gets boring
and it will get boring building your
levels of personal discipline is not
easy but let me tell you it pays off in
fact i will tell you you're never going
to achieve anything meaningful unless
you develop discipline all right i've
just released a class from impact theory
university called how to build ironclad
discipline that teaches you the process
of building yourself up in this area so
that you can push yourself to do the
hard things that greatness is going to
require of you right click the link on
the screen register for this class right
now and let's get to work i will see you
inside this workshop from impact theory
university until then my friends be
legendary peace out
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 going
to wear it i'm going to own it yeah so
if i'm going to wear louis vuitton then
i'm going to own louis vuitton stock
yeah and ah that's so smart like just
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 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
sure 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
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 in the government to pump
money into the system is to buy assets
right so they're gonna 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 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 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 yeah 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 in 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 talking about time for money to 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 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 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 they said 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 gonna buy pop you're
gonna 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 is this
i like to call it net zero thinking
where if i have cash i need to spend it
i have 500 on the bank account i got to
make that zero if i have a thousand
dollars 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 wealth is really
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
7 out of 10 americans across the board
are 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 gonna become wealthy but you're
never gonna be able to out save
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'd 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 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 now you didn't say save for
retirement
yeah invest for retirement you know you
talk about retirement
time 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 what a lot
of people like to do well
pensions are something 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 gonna 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 five and six percent
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
of 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 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 you say
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 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 once 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 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 cow 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
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 two dollars
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 gonna 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