3 Bad Habits Holding You Back from Financial Freedom
Summary
TLDRIn this video, Ali, a former doctor turned entrepreneur, discusses three detrimental habits that may impede one's journey to financial freedom. He emphasizes the importance of recognizing the skill involved in building assets and businesses, taking action despite being busy, and intentionally designing an environment that supports and accelerates one's financial goals. Ali also highlights the role of continuous learning and the significance of surrounding oneself with like-minded individuals to maintain motivation and share insights on the path to financial independence.
Takeaways
- 😀 Financial Freedom is defined as a state where passive income exceeds one's burn rate, meaning more money comes in without work than is spent.
- 🚀 There are two main paths to financial freedom: the slow lane, involving saving and investing over a long period, and the fast lane, which involves building a business or asset to generate passive income.
- 📚 Building wealth is a skill that can be learned and developed over time, not just a matter of luck. It's important to invest time in learning about business and asset building.
- 📈 The 'slow lane' to financial freedom involves traditional methods like saving, investing in property or the stock market, and using the 4% rule for safe withdrawal from investments.
- 🛤️ The 'fast lane' is a more aggressive approach that may still take around 10 years, focusing on creating a business or valuable asset to generate significant passive income.
- 💡 To begin the fast lane journey, one must first recognize the need to learn the skills involved in building businesses and assets, and not remain ignorant of this requirement.
- 📱 Utilizing tools like Trading 212 can aid in investing and managing finances effectively, offering commission-free stock trading and cash back rewards.
- 🎯 Setting aside dedicated time for learning and taking action towards financial goals is crucial, even when life is busy with other commitments.
- 🏋️♂️ Taking action is essential; merely consuming content about financial freedom without applying the knowledge will not lead to success.
- 🌐 Designing your environment to include like-minded individuals on the path to financial freedom can provide support, motivation, and shared learning experiences.
- 🔄 Overcoming 'environmental inertia' means actively seeking out and creating an environment that fosters progress towards financial freedom, rather than passively letting circumstances dictate your path.
Q & A
What are the three bad habits discussed in the video that could be holding someone back from achieving financial freedom?
-The three bad habits discussed are the habit of ignorance (not recognizing the skill required to build assets and businesses), the habit of inaction (not taking steps towards financial freedom despite understanding the path), and environmental inertia (failing to intentionally design one's environment to support the journey to financial freedom).
What is the definition of financial freedom according to Professor Scott Galloway mentioned in the video?
-Financial freedom is defined as a state where your passive income exceeds your burn rate, meaning more money is coming in without you having to work for it than what you are spending.
What are the two main levers one can pull to achieve financial freedom as per the video?
-The two main levers are increasing the amount of passive income coming into your life or decreasing the amount of money that you're spending.
What is the slow lane path to financial freedom as described in the video?
-The slow lane path involves having a job, generating income, saving and investing that income over a long period, and eventually using a safe withdrawal rate like the 4% rule from investments to cover lifestyle costs.
What is the fast lane path to financial freedom according to MJ DeMarco's book 'The Millionaire Fast Lane'?
-The fast lane path is about building an asset or business that generates passive income. This approach is faster than the slow lane but still takes about 10 years and involves actively creating and growing a business or asset.
What is the role of luck in achieving financial freedom according to the video?
-While luck is involved in all aspects of life, the ability to build businesses and assets is a skill, and success in achieving financial freedom is largely due to the development and application of this skill.
How does the video suggest one should learn the skill of building businesses and assets?
-The video suggests investing time to read books, listen to audiobooks, podcasts, and watch YouTube videos about building businesses. It also recommends learning from the experiences of successful entrepreneurs.
What is the importance of taking action according to the video?
-Taking action is crucial because it is the step that moves one from learning about the skill to actually applying it and making progress towards financial freedom.
Why is it important to design one's environment when pursuing financial freedom?
-Designing one's environment is important because it can provide the necessary support, inspiration, and motivation that can help sustain the journey to financial freedom, especially during moments of low motivation.
What is the significance of surrounding oneself with like-minded individuals on the journey to financial freedom?
-Surrounding oneself with like-minded individuals speeds up the process to financial freedom by providing a support network, shared experiences, and a community that understands and supports the journey.
What is the role of a service like trading 212 in the context of the video?
-Trading 212 is mentioned as a tool for investing in stocks and shares commission-free, which can be part of the strategy for increasing passive income on the path to financial freedom.
Outlines
💼 Introduction to Financial Freedom
The video begins with the host, Ali, introducing the topic of Financial Freedom and sharing his journey from being a medical student to a financially free entrepreneur. Ali emphasizes the importance of understanding Financial Freedom as a state where passive income exceeds one's burn rate. He discusses two approaches to achieving this: the slow lane, which involves traditional saving and investing over a long period, and the fast lane, which is about building assets or businesses to generate passive income. Ali's focus is on the fast lane approach, aiming to help viewers reach Financial Freedom sooner rather than later.
📚 The Skill of Building Assets
Ali stresses that building assets and businesses to achieve Financial Freedom is a skill that can be learned. He dispels the myth that it's purely about luck and highlights the importance of education in this area. The host suggests various resources, including books, podcasts, and YouTube videos, to learn about business building. He also introduces the concept of bad habit number one: ignorance, where people either don't recognize the need to learn this skill or fail to invest time in acquiring it. Ali promotes the use of a service like trading 212 for investing and managing finances, which is sponsoring the video, and encourages viewers to take action by learning from successful entrepreneurs.
🏃♂️ Overcoming Inaction for Financial Freedom
The second bad habit discussed is inaction, where individuals consume content about Financial Freedom but never take steps to apply what they've learned. Ali emphasizes the need to carve out dedicated time for working on one's business or asset, regardless of other life commitments. He provides examples of how busy individuals can allocate specific time slots for their entrepreneurial pursuits. The host also touches on the importance of taking action and not just learning, as the latter alone will not lead to Financial Freedom.
🌐 Breaking Environmental Inertia
The final paragraph addresses the third bad habit: environmental inertia, which refers to the tendency to stay in one's comfort zone without making efforts to change the environment for the better. Ali talks about the importance of designing one's environment to include people and inspirations that support the journey to Financial Freedom. He suggests actively seeking out networks, events, and communities of like-minded individuals to create a supportive ecosystem. The host concludes by encouraging viewers to take away actionable insights from the video and to engage with other resources for a comprehensive understanding of the path to Financial Freedom.
Mindmap
Keywords
💡Financial Freedom
💡Passive Income
💡Burn Rate
💡Skill
💡Fast Lane Path
💡Slow Lane Path
💡Action
💡Inertia
💡Environment
💡Habit
💡Learning
Highlights
The video discusses three bad habits that could be hindering financial freedom.
Ali, a former doctor turned entrepreneur, shares his 15-year journey to financial freedom.
Financial freedom is defined as a state where passive income exceeds one's burn rate.
Two key levers to financial freedom are increasing passive income and decreasing spending.
The slow lane to financial freedom involves saving and investing over a long period.
The fast lane to financial freedom is building assets or businesses that generate passive income.
Bad habit number one is ignorance of the skill required to build assets and businesses.
Learning about building businesses is essential but not sufficient for achieving financial freedom.
Sponsor mention: Trading 212 app for commission-free investing and cash Isa with high annual yield.
Bad habit number two is inaction, despite understanding the path to financial freedom.
The importance of carving out dedicated time to take action on the journey to financial freedom.
Bad habit number three is environmental inertia, not intentionally designing one's environment for success.
The value of surrounding oneself with people on a similar journey to financial freedom.
Creating a network of entrepreneurs can help maintain motivation and progress towards financial freedom.
The video ends with a call to action for viewers to reflect on their journey and seek further resources.
Transcripts
all right so in this video we're going
to be talking about three bad habits
that could potentially be holding you
back from getting to Financial Freedom
now if you're new here hi my name is Ali
I'm a doctor turned entrepreneur and for
the last 7 years I've been documenting
the journey on this YouTube channel
starting off as a medical student making
videos helping students study for exams
and eventually building a business to
the point where I am financially free
now for me that Journey has been very
long and very windy and I've been trying
to get to Financial Freedom for the last
15 years and it took me maybe 12 years
to get to the point of Financial Freedom
so I'm hoping but that by watching this
video video and the other videos on my
channel where we talk about this stuff
you able to shortcut that process so
we're going to talk about three bad
habits that are potentially holding you
back but before we do that let's talk
about how should we even think
philosophically about what Financial
Freedom is and how do we get there all
right so what is Financial Freedom well
I really like Professor Scott Galloway's
definition which is Financial Freedom is
when your passive income exceeds your
burn rate I.E there is more money coming
in without you having to do stuff then
there is money that you are spending
this means that if you want to be
financially free you've kind of got two
levers to play with you can increase the
amount of passive income you you have
coming into your life or you can
decrease the amount of money that you're
spending and ideally you would do some
sort of combination of the two things
and you probably won't want to retire
and just not do anything because that
gets boring after a while and then
people who who retire get depressed and
have heart attacks and stuff but you'll
have the freedom and the ability to do
what you want when you want with whom
you want and you will probably realize
that you want to do work of some sort
but you'll have the freedom to choose
what sort of work you're actually doing
and that's really the true value of
Financial Freedom so that then sort of
begs the question how do you arrive at
this point at Financial Freedom where
you're increasing your passive income
and that passive income is greater than
your costs well based on this equation
we can basically see that there are two
levers you can pull you can decrease
your costs or you can increase your
passive income now broadly there are
actually two paths to this MJ DeMarco in
his book The Millionaire fast lane which
is a good book says there's the slow
lane path and then there is the fast
lane path and even fast lane for the
record he defines as being about 10
years long so that's considered fast in
this world so the slow lane path is
where you have a job and your job
generates income and then you put that
income into savings or into Investments
or into slowly buying out a property
every now and then or maybe putting it
in a stock market index fund like the
S&P 500 and
eventually um you use what's called a 4%
rule which is that let's say you end up
having a million pounds in the S&P 500
which is the stock market index fund you
can withdraw 4% of that safely every
year without touching the principal so
your passive income in that case would
be 40K per year now if you can live on
less than 40K per year inflation
adjusted etc etc uh now you are
financially free because your passive
income has exceeded your lifestyle costs
this is the slow lane path this takes a
very long time to get there and there is
an alternative approach the alternative
approach is the fast lane path and the
fast lane path is where you really
figure out can I build some sort of
asset or can I build some sort of
business the slow way of getting to
Financial Freedom is by having a job and
by Saving and investing well and doing
that over a very long period of time the
faster way which still probably takes
about 10 years is to build some sort of
asset or to build some sort of business
and so in this video I really want to
focus on this fast lane approach there
are other videos and we might do one in
the future that that is aimed at people
where the goal is you know what I just
want to have a job and I want to put
aside 20% of my income into Investments
and 20 years from now I will then be
financially free to me that that doesn't
hold much appeal cuz I don't really want
to be financially free when I'm 50 I'd
like to be financially free when I'm 30
or 35 or 28 or 25 or 23 or whatever the
thing might be really I'd like to be
financially free as soon as possible
because then I'm able to use my time
which is my most valuable non-renewable
resource on things that I actually want
to use my time on rather than
necessarily on my day job which if I was
able to design my life however I wanted
chances are I wouldn't do the day job
that I'm currently doing so the goal
really is the fast lane approach to
Financial Freedom how do we build an
asset or business that boosts a passive
income while keeping a l talk cost
reasonably low so that we can get to
this equation for Financial Freedom and
so in this video I want to talk about
three bad habits that are holding you
back from this fast lane approach that
hold a lot of people back uh the first
one is what's the first
one all right so let's talk about bad
habit number one now if we understand
this equation we know that the goal is
to build some sort of asset that gives
us enough passive income such that we
can feel financially free and the the
way we do this is a skill
it is a skill it is not luck of course
luck is involved as with everything in
life but the ability to build businesses
and assets is a skill if you were to
take all of Elon musk's money and
connections and stuff away he would
probably become financially free fairly
quickly because he has the skill of
building businesses and assets and think
with me I have less of a skill of
building businesses and assets than Elon
Musk does but I've been trying to make
money on the internet and building
businesses for about 15 years of my life
now so I would say I have the skill so
if I were to lose all of my money and
all my clout and all my fame and my
YouTube channel and everything I suspect
within a year I would probably be able
to get to a point of Financial Freedom
because I have the skill of building
assets and businesses that I've
developed over the last 15 years now
given that this is a skill um I think
this is one key important thing to keep
in mind that a lot of people who aspire
to Financial Freedom just don't
appreciate that the skill of building
these assets is a skill and like all
skills skills can be learned and so
really bad habit number one is the habit
of ignorance where you a don't recognize
that it is a skill to build assets and
businesses to get to Financial Freedom
and B even if you do realize that you're
just not putting in the time to absorb
the stuff that will give you a sense of
what this map is but one good Financial
habit that you can start right now is
investing and you might want to manage
it with a service like trading 212 who
are very kindly sponsoring this video
trading 212 is a fantastic app that I
personally use that lets you invest in
stocks and shares in a commission free
fashion in particular they've got a new
cash Isa which is paperless offers the
highest annual percentage yield on the
market is fscs protected up to £85,000
and is completely free to use both the
cash Isa and the stocks and shares Isa
are flexible meaning you can withdraw
from them and return money to them
freely within the tax year without
impacting your Isa allowance and they
also have a new trading 212 card that
gives you 1.5% cash back which will be
allocated to your invest account for
each deposit that you make into your Isa
they also have an awesome pies and auto
invest feature which are powerful tools
for creating Diversified portfolios and
automating the monthly investing process
with scheduled deposits so if any of
that sounds up your straet then do hit
the link in the video description and
that will take you to this page where
you'll be guided on how to sign up for
an account and if you use that link then
you'll also get a free share up to the
value of £1 so you might as well it's
just free money so thank you so much
trading 212 for sponsoring this video
and let's get back to it so how do you
learn about the skill well you carve out
time in your day to read books to listen
to audiobooks to listen to podcasts to
watch YouTube videos about building that
skill of building businesses on my
podcast for example there's a bunch of
videos I've done with other
entrepreneurs where they break down the
exact methods they used to grow
multimillion dollar businesses and to
become financially free similarly there
are a bunch of books uh there's million
dollar weekend by Noah Kagan there's
millionaire fast by MJ DeMarco there's
uh Cody Sanchez and hasba coming out
that's very good make epic money by Anu
waraku just looking around at my like
there's Doom Secrets by Russell Brunson
there's anything but Alex hosi there are
literally hundreds and hundreds probably
thousands maybe even tens of thousands
of business books out there lots of them
are on Audible you can listen to them in
audio book format how many of those have
you read if you're like most people I
speak to about Financial Freedom the
answer is probably not very many I'd say
maybe about 80% of people don't really
read enough or listen enough or watch
enough stuff about building the skill of
building businesses oh by the way if
you're enjoying this video so far you
might like to check out my book Feelgood
productivity it's about how to do more
of what matters to you in a way that's
enjoyable meaningful and sustainable and
a big part of this journey to Financial
Freedom is finding the time and energy
to actually do the things that will help
us on our route to Financial Freedom so
you can check this out it's on Kindle
it's on Audible it's on hardback you can
listen to it in the car in your spare
time I hope you'll get some value from
it and so at this point some people
might be saying that like okay well it's
a skill but you can't get the skill just
from learning about it and yes that's
true you cannot just get the skill by
just listening and learning and reading
and all all that kind of stuff you have
to take action as well but essentially
what the learning does is that it gives
you a firmware update in your own mind
it lets you see what the map looks like
it's like imagine you're navigating a
forest and the destination you're trying
to get to is this destination of
Financial Freedom but it's like this
dark forest and there's a lot of fog and
you don't know what's going on you don't
know what the map to that destination
looks like but when you listen to
podcasts where entrepreneurs who have
made millions of dollars are breaking
down exactly the path that they followed
it's like oh okay that's one route to
Financial Freedom you would listen to
another podcast where someone breaks
down how they built a ghost writing
agency to get to a million dollar a year
oh okay there's another path you would
watch a YouTube video where someone like
me talks about how I got to Financial
Freedom through the vehicle of a YouTube
channel and that's another path and the
more you read and listen to and absorb
this sort of stuff the more you'll
realize that the pathway from where you
are right now to where you want to be
which is probably Financial Freedom if
you're watching this video you'll
realize that oh there's all of these
different paths to getting there and
then you can decide which of these paths
do I want to take action on you don't
need to know what are 100 different
paths to get to Financial Freedom but
it's useful to appreciate maybe like 10
what are 10 different ways where you
could theoretically start from where you
are right now and get to the goal of
Financial Freedom within a time frame
that seems reasonable to you and you do
that by reading by listening to by
watching stuff and once you have those
10 at that point you can move on to
Habit number two which is we've talked
about how you can get a sense of what
this map is based on the learning but
bad habit number two is where even when
you do have a sense of what this map is
you decide to stay exactly where you are
and you don't decide to go on this
journey you don't take action bad habit
number two is the habit of inaction
there are a lot of people I know who
want who aspire to Financial Freedom who
don't do any learning about it at all
but then there's also quite a lot of
people who do aspire to Financial
Freedom but who are stuck in this sort
of paradox of just consistently
consuming content and never actually
taking any action maybe you're in that
boat if you're watching this video maybe
you've seen all of my videos about
Financial Freedom maybe you've listened
to my podcast maybe you've read these
books that I've mentioned maybe you've
been watching every video that Alex
homos has ever put out but maybe you
haven't actually taken that first step
to try to make your first dollar on the
internet maybe you're not carving out
the time to actually take action on the
thing now how do you do that how do you
do that if you're busy if you're maybe
you're a student and you've got stuff to
do in the day maybe you've got a
full-time job so you have stuff to do
during the day maybe you're a parent
you've got kids so you've got stuff to
do during the day and like not even
during the day firstly it's important to
realize that almost everyone who ends up
becoming financially free very few of
them got there by having a completely
empty Cali calendar and they just had
swats and swads of spare time and that's
how they were able to build to build
that business mostly you know I've
interviewed probably hundreds of people
at this point who are financially free
they were all busy they all had life
commitments family commitments job
commitments the whole shebang and they
found a way to build this asset or build
this business if they're going down the
fast lane approach in their spare time
so what might this look like in the case
of one of my friends uh what he does is
that he carves out Monday and Tuesday
evening after work every every week
without fail to work on his YouTube
channel and his courses business because
he has decided that YouTube channel plus
selling a course is the vehicle that he
wants to do to get to Financial Freedom
if a friend says hey do you want to hang
out on Monday evening he's like nope
sorry I'm busy that evening he does
Wednesday Thursday Friday Saturday and
Sunday to hang out with friends but
Monday and Tuesday evening is carved out
for work on the YouTube channel and work
on the course alternatively you might
decide that an hour every morning before
work is the amount of time you are
carving out to work on your dream of
Financial Freedom that is the time you
are going to spend taking action it's
not the time you're spending learning
the skill because you can learn the
skill while doing the laundry while
doing the watching while commuting to
work you can listen to stuff you can
watch videos in those spare moments
throughout the day but it's those
concerted hourong at least blocks of
time where you're actually taking action
and actually trying to build the thing
so many people aspire to Financial
Freedom very few people put in the time
because if you look at someone's
calendar and you see what they spend
their time actually doing for most
people who aspire to Financial Freedom
you'll probably find that the calendar
does not reflect this goal of Financial
Freedom and then finally we come to bad
habit number three and this is a habit
that I like to call environmental
inertia inertia is sort of where you
just let things happen as they already
happening you're sort of operating with
the default mode now we've talked about
how an important Habit in getting to
Financial Freedom is learning the skills
and appreciating what the map looks like
we've talked about taking action but
there's a third aspect which is
intentionally designing your environment
so that you're able to come into contact
with people and with inspiration that
will help you out on your journey you
know one of the easiest ways to get to
Financial Freedom or rather to speed up
your process in getting to Financial
Freedom is to surround yourself with
people who are also on that Journey now
these people might be exactly where you
are on that Journey there might be a
couple of steps in front of you there
might be a couple of steps behind you
but if you have friends colleagues
relatives a network if you have people
around you who are also on the journey
to Financial Freedom you are all more
likely to make it because you all
benefit from this compounding effect of
the people that we have around us people
around us give us a lot of energy it
like means that when motivation dips
which it always does on this journey to
Financial Freedom it's not really a
straight line it's more like a s way for
motivation waxes and wains in those
moments where you're feeling down where
your business isn't working you just got
rejected from a sales call that you did
your YouTube video absolutely flopped no
one bought your course all of that stuff
you have people around you who
understand they get the journey that
you're on if all of the friends that you
have are people who have normal jobs and
who do not aspire to Financial Freedom
chances are you will find it very
difficult to go on that Journey on your
own it is a lot easier to go on that
Journey when you're with other people so
environmental inertia is when you're not
putting any effort into designing your
environment you're not putting any any
effort into going to events for aimed at
entrepreneurs or aspiring entrepreneurs
you're not putting any effort into going
to classes you're not putting any effort
into going to meetups you're not putting
in any effort to reach out to people in
your local area through Twitter or
Instagram who you might be able to send
a cold message to be like hey you know
you're an entrepreneur I I am as well
I've checked out what you're doing would
you like to grab coffee or lunch
sometime creating this network of other
entrepreneurs other people trying to
build assets and businesses on this fast
lane to Financial Freedom I think is one
of the biggest things you can do to
massively shortcut your process of
getting there and to ensure that you
don't allow the dips in motivation to
completely stall your progress on this
journey now if you Vibe with this video
firstly I would love to hear a comment
in terms of if you're at this point what
is one action point you're taking away
from this video on your journey to
Financial Freedom and secondly if you
want a whole video where I break down
the journey and more detail you should
check out this video over here which is
my honest advice to someone who wants
Financial Freedom and in that video I
recommend a bunch of different resources
that you can use to also improve your
odds of getting to Financial Freedom so
thank you so much for watching have a
lovely day and I'll see you in the next
video bye-bye
Посмотреть больше похожих видео
5.0 / 5 (0 votes)