These Rules Made Me So Rich I Questioned the Meaning of Money
Summary
TLDRThis video shares 14 financial rules for wealth accumulation, emphasizing the importance of spending less than you earn, reinvesting in yourself, and paying yourself first. It discusses the significance of focusing on your strengths, planning for both success and failure, and the power of giving. The speaker advises minimizing borrowing, understanding risk-return ratios, and avoiding lifestyle inflation. The script also touches on viewing money as a tool, leveraging your network, and defining your 'why' for true fulfillment.
Takeaways
- 💲 To achieve wealth, spend less than you earn and live within your means.
- 💲 Prioritize saving by paying yourself first and reinvesting in yourself or your business.
- 💲 Assign clear priorities to your financial goals to avoid spreading yourself too thin.
- 💲 Create a 'rip cord' budget to plan for both success and worst-case scenarios.
- 💲 Embrace the concept of 'give to get' to increase opportunities and create value for others.
- 💲 Minimize borrowing and ensure any debt is used to generate a return on investment.
- 💲 Analyze risk and return ratios carefully to ensure smart investment decisions.
- 💲 Overcome fears and negative beliefs about money to attract wealth.
- 💲 Avoid lifestyle creep by maintaining a modest lifestyle and reinvesting your earnings.
- 💲 Build a personal profit and loss statement to manage your finances effectively.
- 💲 Recognize that a strong team can elevate your financial success - 'high tides rise all boats'.
- 💲 Money is a tool to be used for achieving life goals, not an end in itself.
- 💲 Your network can significantly impact your financial success, so choose it wisely.
- 💲 Define a clear 'why' for your financial pursuits to maintain motivation and direction.
Q & A
What is the first rule of money mentioned in the script?
-The first rule of money is to spend less than you make.
How did the speaker's father influence his financial habits?
-The speaker's father influenced him by emphasizing that it's not what you make, but what you keep that makes you rich.
What was the turning point for the speaker in terms of managing his finances?
-The turning point was when the speaker started living off a salary of $60,000 a year and putting the rest into savings, as suggested by his accountant Norm.
What is the concept of 'paying yourself first' as described in the script?
-'Paying yourself first' means allocating a portion of your income to savings or investments before covering other expenses.
Why did the speaker's business partner Ethan not come to the office to solve a major issue?
-Ethan did not come to the office because he was too busy doing laundry, illustrating that he wasn't paying himself enough to afford services that would save him time.
How does the speaker suggest using the money saved by paying yourself first?
-The speaker suggests using the saved money to invest in yourself, your business, or your future to grow wealth.
What does the speaker mean by 'assign your priorities'?
-The speaker means that one should focus on what is most important and not try to do everything at once, aligning with the idea that you can have it all, just not all at once.
Why does the speaker emphasize not diversifying when starting out?
-The speaker emphasizes not diversifying to avoid spreading oneself too thin and to become the best ('tip of the spear') in a specific area, which increases chances of success and recognition.
What is the importance of having a 'rip cord budget' as per the speaker?
-A 'rip cord budget' is important because it provides a financial safety net in case of unexpected events, allowing one to recover quickly without panic.
What is the concept of 'money velocity' mentioned in the script?
-'Money velocity' refers to the idea that the more money you spend or circulate, the more opportunities, learning, and returns it can generate.
Why does the speaker advise minimizing borrowing?
-The speaker advises minimizing borrowing because it often leads to paying more in the long run and should be used only when it can generate a return on investment.
What is the significance of analyzing risk-return ratios when making financial decisions?
-Analyzing risk-return ratios helps in making informed decisions about investments, ensuring that the potential returns outweigh the risks taken.
How does the speaker view money in terms of mindset?
-The speaker views money as a reflection of one's mindset, suggesting that negative beliefs about money can hinder wealth accumulation.
What is 'lifestyle creep' and why should one avoid it?
-'Lifestyle creep' is the tendency to increase one's lifestyle expenses as income grows. It should be avoided to ensure that one continues to reinvest and save, rather than becoming wasteful.
Why is building a personal P&L important according to the speaker?
-Building a personal P&L is important for managing personal finances like a business, which can lead to better financial discipline and growth.
How does the speaker define the role of money in life?
-The speaker defines money as a tool, not the goal of life, suggesting that it should be used to create a richer and more fulfilling life.
What does the speaker mean by 'your network is your net worth'?
-The speaker means that the people you surround yourself with can significantly impact your financial success and should be people who inspire and support your growth.
What is the importance of defining your 'why' for financial success?
-Defining your 'why' provides a purpose and motivation for financial success, ensuring that wealth accumulation aligns with personal values and goals.
Outlines
💰 The Path to Wealth
The speaker shares the financial rules that transformed him from a broke 22-year-old into a multi-millionaire. He emphasizes the importance of spending less than you make, acting your wage, and prioritizing saving over spending. The speaker recounts his early struggles with spending and how an accountant helped him manage his finances better. He advises living off a small percentage of your income and reinvesting the rest into your business or future.
💼 Prioritizing and Staying Focused
The speaker discusses the importance of assigning priorities to one's financial goals, drawing inspiration from Oprah Winfrey's philosophy of not having everything at once. He shares his own career journey, emphasizing the importance of focusing on a single industry and becoming the best in that field. The speaker also introduces the concept of 'luck' in relation to skill and effort, and advises against diversification unless it's for global investments.
🛡️ The Rip Cord Budget
The speaker talks about the necessity of having a financial safety net, or a 'rip cord budget', to prepare for both best and worst-case scenarios. He shares his philosophy of planning for disaster to eliminate fear and worry. The speaker suggests having 3-6 months of operating expenses for business and 6 months of personal overhead as a liquid cash reserve.
💹 Giving to Receive
The speaker discusses the concept of 'give to get', suggesting that generosity can lead to wealth. He shares a personal anecdote about hoarding credit card points and how he decided to spend them all to increase 'money velocity'. The speaker argues that spending money wisely creates opportunities and value, and encourages investing in oneself and circulating money in the economy.
🚫 Minimizing Borrowing
The speaker advises on minimizing borrowing and using leverage wisely. He shares a personal experience of buying furniture on credit and how it ended up costing him much more in the long run. The speaker emphasizes the importance of borrowing for investments that increase earning potential, rather than for lifestyle expenses, and suggests taking small risks to learn before making large investments.
📈 Analyzing Risk and Return
The speaker discusses the importance of understanding risk and return when making investments. He uses the example of an investor who turned $27 million into $2.7 billion through a well-informed investment. The speaker advises looking for opportunities with asymmetrical risk, where the downside is low and the upside is high, and warns against investing in high-risk, low-return scenarios.
🌱 Overcoming Money Fears
The speaker talks about the importance of having a positive mindset towards money. He shares his own journey of overcoming negative beliefs about wealth and encourages viewers to adopt an abundance mindset. The speaker suggests that fear of money can prevent financial success and that a shift in mindset can lead to wealth.
🏡 Avoiding Lifestyle Creep
The speaker warns against 'lifestyle creep', where an increase in income leads to an increase in spending and a lack of savings. He shares a story of a friend who quickly amassed wealth but ended up in bankruptcy due to excessive spending. The speaker advises living off a small percentage of one's income to enable reinvestment and wealth creation.
📊 Building a Personal P&L
The speaker introduces the concept of creating a personal profit and loss statement to manage one's finances effectively. He shares how he has a house manager who oversees his personal finances, similar to a CEO. The speaker encourages viewers to manage their money rigorously to grow their personal net worth.
🚀 High Tides Rise All Boats
The speaker discusses the importance of surrounding oneself with a team that can help elevate one's financial success. He shares his philosophy of investing in one's team and people to raise the tide for everyone. The speaker suggests that helping others achieve their goals can lead to one's own success.
🛠️ Money as a Tool
The speaker emphasizes that money is a tool to be used, not an end goal. He shares his own experience of becoming a multi-millionaire and realizing that financial freedom is not the ultimate goal. The speaker suggests using money as a means to create a richer life and to buy time and options.
💼 Your Network is Your Net Worth
The speaker discusses the importance of one's network in achieving financial success. He shares advice on surrounding oneself with people who can lift one higher and how to evaluate and upgrade one's relationships to align with personal goals.
🌟 Defining Your 'Why'
The speaker talks about the importance of defining one's 'why' or purpose in life. He shares his own 'why' and how it has driven his success. The speaker encourages viewers to find their own 'why' to pull them towards success rather than using negative energy to push them.
Mindmap
Keywords
💡Spending Habits
💡Reinvest
💡Pay Yourself First
💡Invest Time for Skills
💡Priorities
💡Diversification
💡Luck
💡Rip Cord Budget
💡Give to Get
💡Minimize Borrowing
💡Risk-Return Ratio
Highlights
The first rule of money is to spend less than you make.
Wealth is not determined by your salary but by your spending habits.
It's not what you make, it's what you keep that makes you rich.
Live off as little as possible and reinvest in yourself or your business.
Pay yourself first; allocate money to yourself before other expenses.
Invest time for skills to get paid more and buy more time.
Assign your priorities and understand you can't do everything at once.
Focus on your unfair advantage in the market and don't diversify too early.
Stick to what you're good at and become the best in your field.
Understand the four levels of luck and how they can impact your success.
Have a rip cord budget to plan for both success and worst-case scenarios.
Give to get; creating value for others can lead to more opportunities.
Minimize borrowing and understand the difference between good and bad debt.
Analyze risk-return ratios to make informed investment decisions.
Wealth is a product of one's capacity to think; change your mindset towards money.
Avoid lifestyle creep and continue to live below your means.
Build a personal P&L to manage your finances like a business.
Money is a tool to help you achieve your goals, not the goal itself.
Your network can significantly impact your net worth.
Define your 'why' to guide your financial and life decisions.
Transcripts
I'm going to share with you the rules
that made me so rich that I questioned
the meaning of making money these rules
are what allowed me to go from a broke
22-year-old to a multi-millionaire today
some of these rules I picked up on my
own during my 26e career as an
entrepreneur and others I learned from
some of the highest net worth
individuals you probably know so without
any further explanation these are the 14
rules of money the first rule is kind of
obvious but it's to spend less than you
make you know Dave Ramsey likes to say
act your way age and I love that think
about it it's what you make but you got
to act proportionate to what it is it's
not your salary that makes you rich it's
your spending habits you know my dad
used to say it's not what you make it's
what you keep that'll make you rich when
I started off I was a horrible spender I
remember I was just trying to kind of
live life I never thought I'd ever have
money so when I started making money it
was a bit carpedm you know sees the day
YOLO remember at 21 I got a check for
almost $20,000 for working a month I was
a consultant I was on contract and it
all showed up in my bank account and my
little brother Mo showed up and I said
hey man let's go on a ski trip it's
right around Christmas time when we
decided to splurge over a 10day period
that he was visiting I spent
$133,000 on snowboard gear and paying
for drinks for friends and crazy hotel
rooms and eating like a king it was one
of the most ridiculous weeks ever there
was like everything was an option we
kept spending the money and at the end
of it I talked to my dad and said Dan
did you do you put any money aside for
taxes and I said nope and that was the
day that I got introduced to Norm and
Norm was my accountant and what he said
is how about we put you on a salary but
what do you need to live and I was like
well my expenses are covered let's do
60,000 a year and everything else will
put in the bank account and that one
decision allowed me to save the seed
money I needed to eventually start the
company that made me a multi-millionaire
so at the start the most important thing
is to live off as little as possible and
reinvest in yourself re invest in your
business reinvest in your future so most
people would say that you want to put
50% towards needs you know you got to
live you got to eat you got 30% towards
wants right so that brings you 80% and
then 20% towards savings high level
think about it so all consuming and
living you want to be at 80% save the
rest which brings us to the second rule
which is to pay yourself first this
one's tough some people feel like all
their money's got to go out first I got
to help other people before I ever help
myself here's what I know you are
actually the most important asset not a
house a car a watch an investment it is
you I remember back in 2009 I was
talking to my business partner Ethan and
we had a major issu we had to solve in
the business and I asked him to meet me
at the office and he said he couldn't
now we had just raised a million dollars
from some of the top investors in San
Francisco and we're building up the team
and we ran into an issue with our
product and I said why can't you meet
he's like hey man I've got to get some
laundry done okay I know it's Sunday
dude but you can do your laundry on any
other day and he said yeah but if I
don't do it this I got a plan and d d
and I'm like man on your way to work
there are literally three different
laundromats that do Wash and Fold like
they'll do it for like 35 bucks it's
like yeah man I'm not really paying
myself enough I'm I'm barely making rent
so here's a situation where we just
raised a million dollars to build the
business and he can't come work on the
business cuz he's too busy doing laundry
the issue he wasn't paying himself
enough to essentially invest in things
that would buy back his time so him and
I could actually go Jam to solve the
problem see most people stay broke
because they're trading time for money
what I'm going to encourage you to
consider is invest time for skills to
get paid more then buy more time to
reinvest in learning new skills that
make you more money see most people
spend time to save money I like to spend
money to save time once I've got that
time then I invested in acquiring new
skills that allows me to become more
valuable then I get to make more money
to then buy time to invest in more
skills that is the equation I remember
one time I was talking to one of my
coaching clients Brad reading he had an
incredible company and he was kind of
burnt out and he wanted to sell it I
said you could and you know the price
and people will buy it from you today or
you take some of the profit you're
making instead of reinvesting in more
software developers and marketing teams
and all that stuff just pay yourself
more so you can enjoy life a little bit
better I said just make a list of things
that you would love to do and he put on
there you know I'd like a gym in my
house I'd love to be able to hire
somebody to take care of the kids we can
get date nights so we were only talking
a few thousand bucks a month and I said
if you could invest in you to give you
more time to build the business business
bigger that dollar amount today is going
to turn into millions of dollars in a
few years and that's exactly what
happened so the way Brad bought back his
time and his energy is that not only did
he have time to work on key things spend
time with his wife but he got the energy
back by not having to worry about not
spending enough time with his family not
going on date nights taking care of his
health I mean he's literally transformed
his body from where he was to where he
is today because he made an investment
in himself if you pay yourself
you force yourself to find resources to
cover other expenses which brings us to
number three which is to assign your
priorities Oprah Winfrey once said you
can have it all just not all at once I
mean it's kind of like you can do
anything you just can't do everything
when people see me today they go wow Dan
you do so many things but if you
actually look over the last 25 years of
my career I've only done one thing and
that's software I started off as a
programmer then I went to Consulting
then I built companies and now I deploy
Capital the four coding Consulting
companies and capital into technology
into software essentially I started off
and I wrote code and I learned how to
build apps and then I ended up starting
a company and I sold people the
applications that I was building and
then I did that three times in a row and
then I decided Well now I'm going to
start investing in other companies and I
did that and now I buy companies but
they're all in the software space so I
want to teach a big idea that a lot of
people get wrong when they start to try
to make their first million dollars
which is is don't diversify except for
globally or Investments don't get
distracted most people end up saying yes
to things they should be saying no to
and know the things they should being
yes to because they don't know what is
their primary aim and focus and if you
do this right then you become the tip of
the spear at what you do tip of the
spear means Best in Class I like to say
world class I think you should be top
five in what you do which sounds crazy I
know if you're an editor or a logo
designer or even a singer you're like
that's just not me and I'm like yeah it
is it just takes a decision and if you
go all in you say I'm going to be one of
the best programmers I'm going to be one
of the best designers I'm going to be
one of the best editors what you do is
you start getting better and better and
better and then you get this thing
called the four levels of luck that one
of my mentors nval rant talks about all
the time first level is just dumb lock
you know just random moments and
opportunities show up in your life and
those are just like dumb lock the second
level is grit luck this is by doing the
work the luckier you get right people
talk about this all the time the third
is skilled luck meaning that you're
getting so skilled at what you do people
know you for that so they ask you for
opportunities that otherwise it looks
lucky to everybody else but to you
you're like no it's just because I'm
really skillful at this thing and then
you end up getting to others luck which
is the tip of the spear you know like
the Warren buffets and the opras and the
Elon Musk where they brought
opportunities that is other people's
skilled luck meaning that people get
lucky in Opportunities and they're like
I like Warren so much I want to partner
with him to do this deal that's when
things get really crazy those are the
four levels of luck that most people
never understand the key for this step
is you got to stick to what is your
unfair advantage in the market invest in
something you know don't get distracted
some of you are really great at building
houses and you're like I want to go into
software I would argue you go make a lot
of money in houses first or some of you
guys are into software and you're like
hey I should get into real estate how
about you stick to software and get
really good at it and trust me you will
find Real Estate Investors that will
partner to build out a massive portfolio
with you if you go get rich I understand
that it's fun to do new things and
there's excitement but don't make those
where you make your money call those
hobbies and go have fun and explore and
don't put the pressure around it having
to perform see a lot of people get
distracted because they take their money
they saved up and they go put it on new
things and then they're freaking out
when the thing's not working out so
they're sacrificing both their current
business and the new business and both
suffer which brings us to number four
which is to have a rip cord budget Jim
rone wants said never begin the day
until you finish it on paper same in
life you should plan for success and you
should plan for worst case so that way
you build a plan around both and you
never have to think about it and when
they're going great or there's an issue
you can go back to the plan you could
lose it all you could find out they
change some law you could get hit by a
bus and My Philosophy is that you have
to plan for it have a disaster recovery
plan I learned this back when we were
building data centers with my software
company if the power went down in the
room you had to backup generators kick
in and it took over the challenge is you
had to have the checklist already
designed so that when it happened you
got to stay cool calm and collected
nobody was running around freaking out
like oh did anybody put the diesel in
the generator you tested it every once
in a while and you made sure you had the
checklist ready to go why is this
important because it allows you to move
incredibly fast and even harder knowing
that if at any point of moving fast in a
direction Something Happens you've
already made the decision on how you're
going to react there's no wasted brain
Cycles around fear concern challenges
worry my business coach Ed milet has
this great saying he says worry is a
wasted use of your imagination I think
most times cuz we haven't built the plan
we're always worrying about what could
happen how about you just decide to do
if it does and you get back to building
your life so there's two categories you
want to look at there's the business
side and the personal side most people
will say in business you want to have at
least 3 months of operating expenses
some will say 6 months but honestly I've
never seen a scenario where you need
that much as long as you're fast to
respond to ISS then yeah you might need
6 months or more on the personal side 6
months of overhead is what you want to
have ready liquid in cash so that if
anything happens to you you lose your
job your business goes to zero the
family won't be impacted and there's no
scenario of seen where an individual
couldn't rebound within 6 months if they
had the fortitude and the mental focus
to just get back in there and find an
opportunity you need to save to weather
the storm because on every economic
downside that's ever happened there's
this crazy upswing on the back end it's
like like a slingshot so you want to be
ready to go through tough times cuz you
built the plan so that you can come out
like a rocket ship which brings us to
number five which is give to get and
Frank one said no one ever became poor
by giving I love this so much literally
it's like my ethos in life I wake up
every day asking myself how can I create
more value for other people than anybody
else in their life that is just a fun
place to get to where you wake up and
you're just giving giving giving so
here's a funny story to give you a
little bit more color a couple years ago
I realized I had been hoarding credit
card points I don't know why I just
became this fun game that I play with
myself I put credit cards in all my
companies for all the ads they run and
all these other scenarios and I was
collecting millions of points per year
but I never use them I've done this with
you know Starbucks points as well at the
coffee shop I don't know why I just got
into this hoarding mentality and I
realized that this hoarding Behavior was
holding me back so this year I woke up
I'm remember tell my assistant I said we
are going to spend all of it I'm going
to use all the the coffee points going
use all the travel points any points
that I've been hoarding is going to get
spent and here's why I call this money
velocity see the more you spend the more
opportunities you create the more you
spend the more you learn the more you
spend the more you can get in returns
because you're making good investment
see I use the word spend but don't get
it confused it's about putting money in
the market being part of the economy the
more time and money exchanges hands the
more value is created in the world see
money is energy and if you hoard it it
will find its way away from you if you
spend it it creates more energy comes
back to you and allows you to do bigger
things with it most people think I'm
going supposed to save but they don't
invest I know I did that for a long time
I looked at my bank account and I just
kept saving saving saving saving it was
in a savings account but it wasn't doing
anything at one point I had millions of
dollars my banker is like hey do you
want to do anything with this and I'm
like leave me alone don't touch it and
they're like we could put it in a GIC
I'm like don't talk to me I don't trust
you it's cuz I didn't know any better
then I realized that if I take the money
I put it in the market I put it into
Investments I invest in myself I invest
in my team I use it I circulate it it's
a resource and the more I use it the
more it's going to come back because I'm
telling the world that I believe that
it's a flow it's an energy it comes out
it comes back it's just like the more
you give the more you get that's how it
works if you hoard it it will find its
way away from you if you hoard it you're
essentially telling the world it's a
scarce resource don't give me more cuz
all I'm going to do is put it in a
bucket but if I say hey there's an
unlimited amount of money out there and
I'm going to put it out it's going to
come back then I'm kind of learning I'm
earning I'm creating opportunities and
getting resources to do bigger things
which brings us to number six which is
to minimize borrowing Robert kosaki
author of Rich Dad Poor Dad once said
the only difference between rich person
and a poor person is how they use their
time in debt I would actually change the
word debt to leverage when I got my
first apartment I had to buy furniture
for the place so I went down to my local
furniture shop I sat down I tested a
bunch of different couches I'm kind of a
tall dude so I need like a deep seat and
I finally found the set that I wanted
and the sales gu is like hey good news
we can offer financing and I'm like what
does that look like and he tells me this
magical thing where I don't have to make
a payment for like 4 years or something
like that anyways I decided to take it
because there was no interest blah blah
blah and it just sounded awesome the
problem is is by the time I had to start
making payments when you actually looked
at the fine print and the interest rate
kicked in I ended up paying four times
more for the furniture than if I would
have just paid for it and the truth was
is I was borrowing money to buy things
that didn't make me money so this is
what I've learned about borrowing money
see the banks make their money on the
majority of the collecting of the debt
and paying of Interest what I want you
to consider is how do you borrow money
to make a return for yourself it's to
increase your earning potential right so
in the short term if you make an
investment in your business I want you
to monitor the ROI cuz you're still
learning how to do it you got to take
shots on goal small bullets little tiny
bullets take shots you're like hey I'm
going to spend some money see if I get a
return these are ways to learn then if
you figure it out you want to shoot a
cannonball see most people when they
start off they like make these big
investments in themselves borrow money
to go to a very expensive Mastermind or
invest in education or go to university
they don't get the return that they
thought they would get borrow to invest
in yourself don't borrow to invest in
your lifestyle that's where you're going
to get yourself in trouble I could have
easily bought used furniture I did not
need new stuff I was trying to show
everybody how cool I was so my rule is
if you can't afford it go make more
money to get it you don't need new you
can buy old which brings us to number
seven which is to analyze the risk
return ratios Warren Buffett said risk
comes from not knowing what you're doing
let me tell you about this crazy story
there's this investor named Bill acman
back in the day he took $27 million and
he invested in a CDS credit default Swap
and that investment and I think a
12-month period turned into $2.7 billion
let me tell you why this applies to you
see he knew there was a chance that that
27 could go down not necessarily to zero
Real Estate Investors do this all day
long they find a property they get it
under contract they borrow money for the
deposit they borrow private money to buy
the place they then they renovate it
they add the value and then they go and
they sell it to somebody else and they
take the difference I mean they pay off
the investors they refinance it with the
bank essentially they have no personal
guarantee no money out of pocket so the
upside is unlimited from a cash on cash
return because had very little of their
own money in the deal so we're always
looking for deals where we have
asymmetrical risk low downside unlimited
upside but let me tell you about the
risk quadrant so on the left side you
have risk and on the bottom you have
returns then place your opportunity that
you're looking at to make an investment
and say hey Bitcoin would be a highrisk
high return index funds would be lowrisk
low returns and something that's a low
return high risk well that's a trick
question as you wouldn't want to do that
one buying a business or for some real
estate and improving the business or the
real estate that's called value ad that
deal would look like a lowrisk high
return scenario which brings us to
number eight which is to not fear money
an ran once said wealth is the product
of a man's capacity to think I love that
see we all have these money stories
these money beliefs my buddy RIT said he
calls them money scripts they're
blueprints there's a way we think about
money yeah I had a weird one that I used
to think that I needed to go bankrupt to
be successful I know it's crazy and it
push money away from me for years cuz
I'd read books on Dave Ramsey who went
bankrupt Walt Disney bankrupt Henry Ford
bankrupt and it made me think oh my gosh
what if I push really hard and I lose
all this money so it made me question
decisions and almost fold in my
businesses some of us have stories
around thinking being rich is bad and
it's only for the greedy well if you
thought that and you're a good person
would you want to race to be rich or
would you slow yourself down yes there's
bad and there's greedy people but most
rich people I know are incredibly
generous and good people the more you
judge people and fear money the more
you'll push it away a lot of people
self-sabotage themselves to being rich
and I'll tell you why let's say your
goal is to be rich I'm just curious if
we just played a game and said what are
some of the negative beliefs people
might have around being rich well they
might say well rich people don't pay
taxes and rich people steal from people
and rich people are greedy and rich
people are self-centered and you can
just list all these beliefs in order and
just ask yourself have I ever thought
that because what I've discovered is
that if we don't work through all the
negative beliefs we have about being
rich then we'll fear money and we'll
push it away so you don't actually have
money problems you have a mindset
problem that just happens to be
reflected in your bank account I want
you to invite more money into your life
by believing you deserve to be rich and
that rich people are great people and
create from a place of abundance and
literally watch your life transform that
is the key which brings us to number
nine which is to avoid lifestyle creep I
once had this buddy I met him at an
event and I watched him make aot lot of
money very quick and as he was playing
this game of trying to keep up with the
Joneses his lifestyle just kept growing
he bought a new car he upgraded his
house watches pretty much everything and
eventually everything backfired on him
and his business really suffered and
unfortunately he was overleveraged and
he didn't have the money to cover all of
his payments so he had to file for
bankruptcy you see once you start making
money the game is here to try and live
off as little as possible for as long
long as possible not to suffocate your
ability to reinvest in yourself to make
more money but to just not be wasteful
instead of buying the new BMW invest in
yourself or another business vehicle
that could buy you 10 BMWs in the future
some people think that compound interest
is the most powerful force in the
universe but delayed gratification is
even stronger and that's why this money
rule will make you rich if you're able
to delay trying to reap the rewards too
soon you should get used to play playing
this game of spending as little as
possible for as long as possible like
all the the Gucci and the fancy stuff
and look I know a lot of people see me
today with the jet and the cars and the
house and all that stuff but even today
I live off about 10% of my income
because I'm reinvesting and other things
that are going to make me money in the
long term and then over time I just I
live off of that cash flow and I think
everybody has the opportunity to do that
if they learn how to play this money
game which brings us to number 10 which
is build a personal p&l so I was talking
to one of my friends once and he was
telling me how he wanted a simple life
and this guy was wealthy he didn't want
too much stuff too many things to manage
but here's the secret and this is why I
told them the wealthiest people aren't
managing their own Estates dude you can
invest in having somebody to help you
out so I explained to him when you have
two or three or four homes like I do
then you have somebody manages it I have
a house manager named Betty She is the
CEO of everything in my personal life
like any money that comes in manages the
income she manages the expenses that go
out and she manages the forecast and the
budgets for all those so if anything
gets out of whack she's the first one to
say like hey why is the landscaping for
you know the properties more expensive
than it should be so I want to teach you
this cool idea that most people have
never heard when it comes to money just
like in a business your personal life
should have its own profit and loss
statement I know I know this is some
people are like what are you talking
about if you think about it your life is
a business you have a salary you have
income and you have expenses and I know
most businesses have a CEO a CFO a COO
to manage all this and financial
projections and planning and most people
with money would maybe call this a
financial planner or a family office but
I like to think it at a high level I
actually have my personal family Affairs
in my accounting software I know crazy
idea but why wouldn't you it just makes
it so much easier to manage I want you
to consider if you get really good at
managing money you'll be able to make
more money most people that are Loosey
Goosey on their financials they will
never have the rigor and the maturity to
be able to grow their personal netw
worth which brings us to number 11 which
is high tides rise all boats when it
comes to making money it requires a team
and I used to have a belief that if I
trained a team that eventually they
would leave you know I have my buddy
Cameron Harold incredible author you
know people would say to him like what
if you hire a bunch of people and you
train them and then they leave and he
would joke well what if you don't and
they stay so what most people do is they
hire less competent people because it
feels more secure because they're
insecure about people leaving them the
challenge with that is this B's and C's
risk your a so think about anybody on
your team today that might be great if
you hire somebody that makes them work
harder they're going to get frustrated
and they'll eventually leave so if
you're trying to rise the tide if you're
trying to increase the average of the
people on your team then you have to
invest in your people I mean I know when
things are good it's easy to invest in
them the economy is good I invest in my
people but honestly even when they're
not doing so well just don't stop it
could be you training them buying some
training making sure they feel supported
so the best way to keep people is to
understand what their dreams and goals
are and my rule is your dreams and goals
for your life have to be big enough for
everybody else's to fit inside of so
that you can raise the tide and it
brings them with you in they'll want to
stay with you you got to fix that
mindset and watch your life transform
which brings us to number 12 which is
money is a tool not the goal Henry Ford
once said money is like an arm or a leg
use it or lose it you know I once heard
that that money is a tool it's like a
fork it can either be used to nourish
you or it could be used to take
somebody's life but it is not the goal
of Life see I became a multi-millionaire
at 28 and then drifted for almost 2
years I thought I had made it you know I
sold my company I kind of retired and
then I realized that Financial Freedom
means nothing because the point of life
is not actually about making money it's
about having a richer life money is just
a tool that can do that it can also not
do that if you stress yourself out if
money is a primary reason that you make
any decision then you'll always make
money the master but if money is just a
consideration then you'll feel free at
the end of the day it doesn't matter if
you have a million dollar or $100
million money is a store of value and
needs to be put to work the work is to
buy you time so you have options about
how you want to spend it to become more
valuable ideally so you can reinvest it
in making more money to buy more time to
feel useful I mean at the end of the day
people talk about happiness I'm not
about being happy I think that's a
moment in time what I want to feel at
the end of the day is I want to feel
useful I want to feel like I created
something I want to feel fulfilled and
when I look back at the days where I
felt that way it's usually spent with
people I really admire creating
something really cool that was kind of
hard to do things that were going to
impct a lot of other people don't make
money the primary goal but a tool to get
to your goals which brings us to 13
which is your network is your net worth
Oprah famously said surround yourself
with only people who are going to lift
you higher if you think about it you got
to look around your peer group and ask
yourself are these people that are going
to lift me up to achieve higher levels
my friend jokingly asked me cuz I was
saying that you know I'm trying to
upgrade my network and he said how many
of your friends have private Jets or
gate cats and at the time I was like
none he's like look it's not about the
money but that's usually a good filter
cuz people that are kind of vibing at
that level typically have a lot of cool
stuff going on in your life and if you
want to get in a room where you're going
to feel like an impostor which is the
key then you got to make sure that those
people are doing really big things most
people make the mistake they say you
become the average of The Five People
You spend time with I would actually you
become the average of the five people
that you let influence you I upgrade my
relationships all the time I look at my
goals I look at where I spend my time
and I get to ask myself if these people
are going to help me and support me with
my goals if I feel like they'll slow me
down or they'll always talk down on me
or they're just not wanting to create a
life at that level unfortunately I have
to do a friend ventory I have to
evaluate where I'm at and find some new
people I can love people I just can just
figure out where I can spend time with
other folks that might get me to where
I'm going a lot faster so if you're fast
growing you need to look at who you're
spending time with and cut anchors
holding you back which brings us to
number 14 which is Define your why when
I started out I use a lot of dark energy
to build my life I a lot of people I
wanted to prove wrong like my buddy
Mike's mom who said I couldn't play
together to you know my dad who I didn't
think at the time he believed in me to
everybody that ever doubted my ability
to win and I didn't give him a lot to go
off of but that was the energy to prove
people wrong but then once I achieved
success and I became a multi-millionaire
this actually needed to shift to light
energy and the reason why is that dark
energy can work it's just heavy so to go
bigger you got to figure out your why
because that'll pull you forward not
push you forward using Dark Energy it's
more of a light energy pulling you
forward my why is huge it's very simple
I want to become the person I needed
most in my darkest days and I want to
teach everything I've learned that
worked for me along the way you know my
friend coach Bert says you know you
should go to bed tired wake up hungry a
lot of people see me get up at 400 in
the morning and go back back back back
and do everything with the kids the
family the workouts the the team
meetings the podcast tours the media
stuff flying around all this stuff what
they don't get is my work ethic is a
reflection of my gratitude my gratitude
for the opportunity my Creator giving me
this chance I just want to show up and
give as much as I can towards my why so
I'm going to ask you what are you
optimizing your life for essentially
what are you trying to do are you just
trying to get rich that could work if
everything you do is to make more money
you could become really great at that
some point you might ask yourself what's
the meaning of it all because I know if
that I found out that tomorrow at 5:00
was my last day I'm not rushing to the
office I'm not rushing to go
snowboarding I'm going to grab my family
members that I can grab I'm going to sit
down I'm going to hang with them I'm
going to pour into them and in the last
breath I got to leave this earth with a
smile because I spent the time with the
people I wanted to most so there's
opportunities all day to make more money
I get hundreds of investment
opportunities every day I could spend a
lot more time looking at them but I say
no to most opportunities speaking gigs
traveling the world free vacations
dinner request everything cuz the last
thing I want to do is get really excited
about a new opportunity actually be
successful climb this ladder of success
only to find out that that ladder that
future is leaning against the wrong wall
and look across the room and see the
ladder on a different wall which is
actually where I want to be so we have
to begin with the end in mind we have to
know what our why is what our purpose is
that's really cool having a Big Y just
makes the whole process easier and will
make you more money if you want to learn
how I would go from broke to millionaire
then click the link and I'll see you on
the other side
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