7 Things You NEED To Stop Buying To Get Rich

Summary

In this video, the speaker debunks the myth of flaunting wealth and advises against living a lavish lifestyle while building wealth. He shares personal insights, emphasizing the importance of investing wisely and avoiding unnecessary expenses such as buying a house, the latest tech, and impulse purchases. The speaker also recommends staying single and focusing on personal growth to achieve financial success, highlighting the value of reinvesting and making informed investment decisions.

Takeaways

• 💰 Wealth accumulation is about investing wisely rather than flaunting a lavish lifestyle early on.
• 🏠 Avoid buying a personal house early in your wealth-building journey as it can lock up capital that could be better reinvested.
• 📱 Resist the urge to constantly upgrade to the latest tech gadgets; they don't necessarily contribute to happiness or success.
• 📈 Only invest in what you understand well to avoid financial pitfalls and ensure your investments are informed decisions.
• 💑 Consider staying single while building wealth to focus on personal growth and avoid unnecessary expenses on relationships.
• 🚗 New cars depreciate quickly; consider buying used vehicles to save money and avoid financial strain.
• 🎁 Limit spending on gifts for partners, especially during the early stages of wealth creation.
• 🛍️ Be cautious of impulse purchases, including items on sale, designer clothes, and entertainment subscriptions.
• 🔒 Avoid extended warranties as they often offer limited value and can be an unnecessary expense.
• 🍷 Abstaining from alcohol can lead to better sleep, more energy, and weight loss, contributing to overall success and well-being.
• 📚 The script emphasizes the importance of knowledge and education in investing, suggesting platforms like Moomoo for beginners.

Q & A

What is the main message of the video regarding wealth accumulation?

The main message is that to become truly wealthy, one should focus on accumulating wealth and avoiding extravagant lifestyle choices that can deplete assets.

Why does the speaker suggest avoiding buying a house if you're serious about becoming extremely rich?

The speaker believes buying a house locks up hard-earned money and prevents leveraging it for further wealth creation, which is crucial for becoming extremely rich.

What alternative to buying a personal house does the speaker recommend for wealth accumulation?

The speaker suggests investing in rental properties or house hacking, which involves renting out part of the property, as a smarter financial move.

What is the speaker's view on buying the latest tech gadgets for showing off a flashy lifestyle?

The speaker advises against it, stating that owning the latest tech for the sake of appearance is not a wise financial decision when aiming to become truly rich.

Why is investing in things you don't understand considered a poor financial decision according to the speaker?

Investing without understanding the market or the investment vehicle can lead to poor decisions and potential loss of capital, which hinders wealth accumulation.

What is the speaker's opinion on having a partner while building wealth?

The speaker suggests staying single during the wealth-building phase to avoid the financial and time commitments associated with maintaining a relationship.

What is the financial impact of buying a new car according to the calculations provided in the script?

Buying a new car leads to significant depreciation and ongoing loan payments, which can erode wealth over time.

What alternative to buying a new car does the speaker recommend for those looking to build wealth?

The speaker recommends buying used cars that are a few years old, as they have already experienced most of their depreciation and are more affordable.

How does the speaker view impulse purchases in the context of wealth building?

The speaker sees impulse purchases as detrimental to wealth building, advising to control such spending and focus on investments instead.

What is the speaker's stance on alcohol consumption in relation to wealth accumulation?

The speaker advocates for abstaining from alcohol, citing its negative impact on health, productivity, and financial decisions.

What advice does the speaker give for managing entertainment subscriptions to save money?

The speaker suggests subscribing to one streaming platform at a time, canceling after using it for three months, and then switching to another to avoid unnecessary costs.

Outlines

00:00

💰 The Illusion of Wealth vs. True Riches

The speaker clarifies that the glamorous image of being a multimillionaire with private jets and supercars is a myth, often perpetuated by those who wish to appear wealthy rather than actually being so. The emphasis is on the importance of building wealth through smart financial decisions rather than spending it all to project a lavish lifestyle. The speaker shares personal experiences, including a pivotal conversation with his son Curtis, which led to a change in perspective on investing in a personal home versus reinvesting in a business. The message is to focus on accumulating liquid assets and avoiding lifestyle choices that hinder wealth accumulation.

05:03

🏠 Avoiding the Pitfalls of Early Homeownership

The speaker argues against buying a personal home early in one's wealth-building journey, viewing it as a poor investment that locks up capital which could be better used for business growth or other investments. He differentiates between buying a home for personal use and investing in rental properties or house hacking, which he considers smart moves. The speaker also discusses the benefits of renting, the historical context of easier property acquisition, and the importance of leveraging savings for higher returns rather than tying them up in a depreciating asset like a personal home.

10:03

📱 The Folly of Chasing the Latest Tech Trends

The speaker warns against the unnecessary expenditure on the latest technology for the sake of appearances or perceived happiness. He shares personal anecdotes about using older models of phones and the value of seeing technology as a tool rather than a status symbol. The advice is to avoid being swayed by marketing and to focus on investments that have a significant impact on life and wealth. The speaker also introduces Moomoo, a trading platform that offers educational resources and tools for investors, especially beginners, and highlights its benefits in building a solid investment foundation.

💳 The Cost of Impulse Buying and Financial Freedom

This paragraph delves into the financial implications of impulse purchases, such as items on sale, designer clothes, entertainment subscriptions, extended warranties, and alcohol. The speaker emphasizes the importance of controlling impulse spending and the benefits of saving and investing that money instead. He provides examples of how these small expenses can add up and advocates for a disciplined approach to spending, especially when one is focused on achieving financial independence and early retirement.

Keywords

💡Lavish Lifestyle

The 'lavish lifestyle' refers to an extravagant way of living, characterized by expensive habits like traveling on private jets, driving supercars, and being surrounded by luxury. In the video, the speaker debunks the myth that living lavishly while trying to build wealth is feasible, emphasizing that those who try to look rich often fail to become genuinely wealthy.

💡Liquid Assets

'Liquid assets' are assets that can be quickly converted into cash without significant loss of value, such as savings, stocks, or bonds. The video emphasizes the importance of having liquid assets before indulging in luxuries, as these are crucial for financial security and investment opportunities.

💡Investment Vehicle

An 'investment vehicle' refers to a method or product used to grow wealth, such as stocks, bonds, or real estate. The video advises against buying a personal property to live in as an investment vehicle if one aims to become extremely rich, suggesting that other forms of investments may yield better returns.

💡Depreciation

Depreciation is the reduction in the value of an asset over time, particularly with vehicles or technology. The video discusses how buying a new car is financially detrimental due to its rapid depreciation, making it a poor choice for someone trying to build wealth.

💡Impulse Purchases

'Impulse purchases' are unplanned or spontaneous buys, often driven by immediate desire rather than necessity. The video highlights how these purchases, such as buying sale items or designer clothes, can derail financial goals by draining resources that could be invested more wisely.

💡Rental Property

A 'rental property' is a real estate asset purchased to be leased out to tenants, generating passive income. The video distinguishes this from buying a personal home, presenting rental properties as a smarter financial decision for those aiming to grow wealth.

💡Financial Independence

Financial independence refers to having enough wealth to live without working for basic necessities. The video promotes the idea that achieving financial independence requires making smart, long-term financial decisions, such as avoiding unnecessary expenditures and investing wisely.

💡Knowledge

'Knowledge' in this context emphasizes the importance of understanding investments and financial decisions. The video, quoting Tai Lopez, stresses that knowledge is essential for making informed choices that can lead to wealth, particularly in stock trading.

💡Extended Warranties

Extended warranties are service agreements that provide repair and maintenance coverage for a longer period than the standard warranty. The video argues that these are often unnecessary and a waste of money, especially when the product's lifespan or relevance to the owner may not justify the extra cost.

💡Alcohol

Alcohol, within the video's context, represents a common but detrimental expense that can hinder one's financial and personal growth. The video suggests abstaining from alcohol to maintain mental clarity, energy, and health, all of which are vital for achieving success and wealth.

Highlights

The speaker warns against the misconception that living a lavish lifestyle is necessary to become wealthy, emphasizing the importance of actual wealth accumulation over appearances.

The speaker advises against spending all one's wealth on a flashy lifestyle, suggesting a more disciplined approach to spending and investing.

The speaker shares personal experiences to illustrate the importance of reinvesting earnings rather than spending on non-essentials.

The speaker argues against buying a house as a first step for wealth accumulation, suggesting that it can lock up capital that could be better used elsewhere.

The idea of reinvesting savings into a business rather than a house is supported by the speaker's son's example, who chose to grow his business instead.

The speaker differentiates between buying a personal property and investing in real estate, suggesting the latter can be a smart move.

The speaker advises against spending on the latest tech gadgets, emphasizing the need for practicality over keeping up with trends.

The importance of understanding investments is stressed, with a caution against investing in things one does not fully comprehend.

The speaker promotes the use of platforms like Moomoo for better investment knowledge and experience, especially for beginners.

The speaker suggests that having a partner during the wealth-building phase can be financially distracting and advises focusing on personal growth first.

The financial implications of purchasing a new car are discussed, with the speaker advocating for buying used vehicles to avoid depreciation costs.

The speaker warns against impulse purchases, including items on sale, designer clothes, and entertainment subscriptions, which can erode wealth over time.

The benefits of abstaining from alcohol are highlighted, with the speaker sharing personal anecdotes and referencing a study on the topic.

The speaker emphasizes the importance of financial discipline and the avoidance of unnecessary expenses as key to building wealth.

The speaker concludes with a call to action for viewers to subscribe for more wealth-building advice, indicating a commitment to ongoing education.

Transcripts

I travelled on private jets, drove a supercar,

and was surrounded by the best looking women

when I was becoming a multimillionaire.

Sorry to break it to you

but that statement is a complete lie.

The trouble is a lot of people that want to get rich

are trying to live a lifestyle like this.

Why?

Because many would rather look rich than actually be rich.

So if you are someone that just wants

to show off a flashy lifestyle,

then this video isn't for you.

Turn it off and go and spend the next 30 year

spending everything you have until you get to 50 years old

and have nothing to show for it.

Don't get me wrong.

I did experience all the things I mentioned,

however, not until I had at least a million dollars

in liquid assets.

So when I say you have little to no chance

of becoming a millionaire,

at the same time as living a lavish lifestyle,

I'm not trying to crush your dreams, quite the opposite.

I want you to do all the hard work now

so you can enjoy all the benefits of wealth later on.

The biggest being the freedom to do whatever you want

whenever you want.

So if you wanna become rich, then listen up,

because if I was in your position

I'd avoid buying these seven things.

Number one, a house.

A lot of people aren't gonna agree with this one.

But buying a house for yourself

if you're serious about getting extremely rich

is one of the worst moves you can make.

I didn't always think this way,

but in recent years I've changed my mind

mostly due to a conversation with my son, Curtis.

One day he revealed to me that he'd saved up around $70,000

from working a couple of years as a freelance videographer

and I suggested he used it

as a deposit on a house and start paying off a mortgage.

Now, before I continue,

I still stand by this advice if you're just looking

for a slightly better than average level of wealth,

but now it doesn't apply

to those that wanna become truly rich.

Curtis was, and still is, very against the idea

of buying a house for himself.

At the time he said to me,

"It's taken me years to save up this money.

Why would I lock it up in a house

rather than reinvest it into building my business

which has already made me a decent amount of money."

I took a moment to think

and I realized he was completely right.

Buying a house for himself would lock up

all the money he'd worked so hard to earn

meaning he couldn't leverage it to make more

and he'd have to start from ground zero again.

Let me clear something up though.

I'm only talking

about buying a personal property to live in,

buying a rental property or house hacking

by renting out part of the property.

It's a completely different thing and pretty smart.

If you aren't doing any of these things,

then renting is actually a better idea.

Most people find this hard to get their heads around that.

They just see it as money wasted every month.

But the return Curtis could be getting on a deposit money

that would've been locked away is far more valuable.

I know this is the complete opposite

from what a lot of older people will tell you.

However, what most don't consider is backing our day

it was much easier to buy a property

as it required far less money down.

Getting a mortgage is kind of like a locked savings account

so it's only a good idea for people

that are just gonna waste the money

or leave it sitting in a bank account doing nothing.

Luckily, Curtis reinvested the money back into his business

Tilbury Multimedia Limited

which currently generates about a million dollars each year.

So if you wanna be rich,

then you have to find a better investment vehicle

than a house to live in.

Number two, the latest tech.

Nobody really cares

if you've got the latest iPhone or Apple Watch.

Too many people upgrade to the latest tech items

just because it looks cool

or they think it makes them happier.

I waited so long to upgrade from my iPhone 3G

that the apps actually stopped working.

I could normally deal with this without too many issues

but I was doing a lot of sales on eBay at the time

and I needed to use the app

so there was a value to upgrade into a new model.

However, instead of going out and buying the latest model,

I decided to buy an iPhone 4

which is when my son had the latest iPhone 6S.

He used to laugh at me using my older phone

but it did everything I needed it to do

and a newer model would've made me any happier

as I just see it as a business tool.

The truth is, while owning a useful device

like an iPhone or an Apple Watch can be beneficial,

upgrading to the newest version

for the sake of having the latest technology

is not a wise financial decision

if you're aiming to become truly rich.

Instead, focus on purchasing items

that can have a much bigger impact on your life

and avoid being drawn in by the marketing hype.

Number three, investments you don't understand.

Let's face it, too many people

got into investing during the pandemic

without really knowing what they were doing.

They simply put their money into stocks

and hoped the value would increase,

which is a terrible idea.

As Tai Lopez would put it it's all about.

- Knowledge.

- Knowledge of stocks, the market, wall Street,

and the trading tools that you are using.

That's why Moomoo is sponsoring this section of the video

as in my opinion, Moomoo is not just a trading platform

for buying and selling stocks, but a tool that truly focuses

on helping investors

have a better experience, especially beginners.

It was founded in Silicon Valley

and has over 20 million users worldwide

allowing them to trade stocks

straight from an their iPad, laptop, or smartphone.

I love that It provides me with free vital information

about a company such as how a Company performed in the past,

what it's projected to do in the future

and how Wall Street analysts rate it.

You can also find more than 2,500 free investment courses

ranging from beginner to advanced levels.

If you join Moomoo today using a link in the description,

you can receive up to 15 free stocks

each worth between 3 and $2,000.

That's an amazing deal.

These free stocks can help you start

building your investment portfolio right away.

Number four, gifts for a partner.

I'm not saying don't buy your partner gifts.

I'm actually going one step further.

I don't think you should have a partner at all

when you're laying the building blocks for your empire.

When I was in my teens and early 20s

I had a four week rule.

If I knew a girl I met wasn't gonna be the one,

then a maximum I would allow was four weeks.

I thought it was kind to allow them

to move on as it meant I didn't have to buy

any expensive presents.

As you aren't really socially expected to buy any gifts

if you've only been seeing someone for a couple of weeks.

According to the National Retail Federation

the average person will spend

around $103 on Valentine's Day gifts per year.

Now, I know that doesn't seem like a huge deal

but that's just one occasion.

You'll need to budget about $100 minimum

for birthdays, Christmas, and anniversaries as well.

Let's throw in the extra $15 a month for flowers

and you are looking at an extra $180 that's over $580

and we haven't even started on those little surprises

throughout the year or times that call for bigger presents.

We've all been there.

I don't wanna come across as being cheap,

but the only person I wanted to spend any money on

was my future wife.

I knew that would be an investment

but anything else was just a waste.

When I was building my wealth,

I wasn't looking for anything long-term

because I knew I wasn't the man I wanted to be yet.

So if you wanna become rich, I suggest staying single

and focusing on building your empire.

You'll have more time and money to invest in yourself

and your future, and who knows,

maybe you'll find someone who shares your financial goals

and ambitions along the way.

Number five, a new car.

Purchasing a new vehicle is in fact

one of the very worst financial decisions someone can make

and the silent wealth killer nobody talks about.

Let's do the maths.

For a mid-size vehicle worth $25,000.

If you don't have enough money to buy outright,

you may opt to get a loan instead.

Assuming you have a good credit score

and obtain a 3.5% interest rate with a $3,000 down payment

and a 1,000 pound trade-in of your old car

you'll be paying $382.02 a month for 60 months.

However, you'll also have to consider

the depreciation of the vehicle.

A new car loses around 22% of its value

in the first year and around 55% over five years.

This means that halfway through your loan,

you'll effectively be flushing $400

down the toilet every month

for the next two and a half years

as you'll never get that money back.

So what's the solution?

Well, believe it or not, I didn't buy my first brand new car

till I was about 35 years old.

Before that, I bought cars that were around five years old

such as Ford Escorts, Peugeot 206s, and Ford Focuses.

As I knew they had experienced

the majority of their depreciation

and they were well under half price.

None of the cars I purchased lost more than 15% in value

meaning the person who bought the car when it was new

took the biggest hit.

The only reason I bought a new car when I was 35

was for my wife who needed to do a lot of mileage

and I prioritized her safety over the loss in value.

So if you want to be rich

then you need to be smarter in purchasing a vehicle.

You don't want it eaten away at your wealth

month after month.

Number six, impulse items.

You'll never become the person you want to be

if you can't control impulse purchases.

Let's attack them one by one.

Firstly, stuff that's on sale.

It's important to see past so-called sales.

Often the sale price of a product

is not actually a real discount.

And the retailer has simply increased it

above the recommended retail price

for a week or so in one location.

Alternatively, it may be a low quality item

that no one wants.

Secondly, my age old nemesis, designer clothes.

I have nothing against buying quality clothes.

In fact, I think it's a good idea

because they'll look better and they'll last longer.

What I don't like a designer clothes

that only justify their expensive price tag

due to the hype around the label.

People only buy these brands

for one reason: to impress others.

Thirdly, we have to talk about entertainment subscriptions.

It used to be fine when we only had Netflix

but now there seems to be so many other streaming platforms.

I only sign up for one at a time.

I don't have enough free time to watch everything anyway

so I just watch everything I want

on each platform during a three month window

then cancel, jump to a new one.

Fourthly, the scam that is extended warranties.

For example two years is a pretty reasonable lifespan

for an iPhone.

So in reality, when you buy an extended warranty,

you are just paying really for one extra year of coverage

and by the time you get to that last year

you may have lost details

of your warranty or even sold the item.

These impulse purchases

might not seem like much in the moment,

but when you add them all up,

you realize how much they're costing you.

Number seven, alcohol.

The most important thing you can do right now

to gain an advantage over everyone else is to stop drinking.

I haven't really been properly drunk

since a big family gathering when I was about 19 years old.

They kept buying me drinks

and I just found it so hard to say no.

The drinks just kept coming, and I ended up very ill.

I couldn't work the next day

and sat in bed thinking about the night before.

It struck me why would you drink alcohol

when it makes you feel so bad?

Furthermore, why would you drink

when you're at the height of your powers

such a young person?

This thinking has actually been backed up

by a study from the University of Sussex.

857 participants took part in the Dry January campaign

and abstained from alcohol for the entire month.

The study found that 71%

of the participants reported sleeping better.

67% had more energy.

And 58% experienced weight loss.

All of these things are very important

for success when you're younger

so why slow down your brain by drinking?

If you'd like to know how you can retire

before everyone else, then you can watch this next video

but don't click on it just yet.

Make sure to subscribe if you wanna grow your wealth.

Okay, see you over there.