How Billionaires Make, Spend & Invest Money – Tristan Tate

Summary

In this candid discussion, the speaker reflects on his most lucrative business ventures, highlighting the evolution of his wealth from humble beginnings in sales to managing highly successful businesses like Hustler's University. He shares insights into his mindset, focusing on the importance of enjoying wealth, making bold purchases, and adopting an abundance mindset over the conventional ‘savings first’ mentality. The speaker also emphasizes the unique paths to financial success, encouraging listeners to embrace a mindset of growth and taking risks, while making smart investments and avoiding the criticisms of others who fail to understand wealth-building strategies.

Takeaways

• 😀 Takeaway 1: Success in business is often relative and can be defined by different levels of achievement, depending on one's starting point and current situation.
• 😀 Takeaway 2: The most lucrative business is the one you're currently in, as your financial situation should consistently improve over time with growth.
• 😀 Takeaway 3: Sales is a highly profitable business and skill, with the potential for significant earnings from a young age. Tristan's early career in sales was the first time he experienced financial success.
• 😀 Takeaway 4: Wealth and financial success are not only about accumulating money but about enjoying it and spending on things you value. It's also important to focus on investing once you reach a certain level of wealth.
• 😀 Takeaway 5: Material wealth, like luxury cars and high-value items, can be used to set a high standard of living and represent a shift from pretension to true wealth.
• 😀 Takeaway 6: Living in the moment and enjoying your wealth while still young is important. It's about having a lifestyle that reflects the success you've achieved.
• 😀 Takeaway 7: Charity is important, and Tristan often contributes to causes he cares about, despite also spending on luxury items. It's essential to balance personal enjoyment with helping others.
• 😀 Takeaway 8: A mindset of abundance is key. Instead of adhering to the typical 'save for the future' mentality, it's about being able to live well now while also planning for the future.
• 😀 Takeaway 9: Wealth-building in sales involves taking risks, spending money, and using it as a motivation to increase hunger and drive for financial success.
• 😀 Takeaway 10: The wealthy don't follow conventional rules about money. They make decisions based on their unique circumstances and goals, creating diverse ways of achieving success.
• 😀 Takeaway 11: Mindset is as important as method when it comes to wealth. Successful individuals share certain attributes, like focus, time management, and a refusal to waste energy on trivial matters.

Q & A

What has been the most lucrative business you've been involved in?

The most lucrative business I am involved in right now is my online university and everything related to it. This is the most successful venture in terms of turnover, but the definition of 'lucrative' can vary depending on the stage in life you're at.

Why does the definition of lucrative business depend on where you are in life?

When you're starting with no money, even a small increase in income, like making ten grand a month, can feel like the most lucrative business. Over time, your earnings grow, and so does your perspective on what constitutes a lucrative business.

How did you make your first significant money?

I made my first substantial amount of money through sales. I started by knocking doors for Anglian Windows and later moved on to sell television advertising campaigns. My first big sales success was when I was making 5,000 to 8,000 pounds a week at the age of 19.

What was your feeling when you made significant money at a young age?

At 19, I felt incredibly rich for the first time, as I was able to afford things like renting a nice apartment and financing a Porsche. Even though I didn’t have much material wealth back then, it was the first time I had the freedom to make purchases without constantly checking my bank balance.

Why do you believe people often underestimate the wealth of others?

People tend to focus on the image of wealth that can be faked, like renting a Lamborghini and pretending to be rich. But true wealth is much harder to fake, like owning expensive cars, private jets, and having real assets.

How does the difference between being worth 30-40 million versus being a billionaire affect your lifestyle?

The lifestyle difference between being worth 30-40 million and being a billionaire is minimal. The richest people in the world, like billionaires, live similarly to how I live, with access to private jets and expensive cars. The main difference lies in the scale of assets and the ability to afford more expensive properties or ventures.

How do you manage your wealth now compared to when you were younger?

I’ve evolved from spending what I had, including buying luxury cars and expensive items, to making smarter investments like buying properties and real estate trusts. I still enjoy spending, but now I balance it with investments to ensure long-term wealth growth.

Why do you still make large purchases despite having significant wealth?

I believe in enjoying life and spending money on things I like while I’m still young. The key is to spend responsibly, enjoy the fruits of your success, and also give back to charity. It’s not just about having wealth; it’s about living life to the fullest while also helping others.

Why do you reject the 'save money and live frugally' mindset?

I don't believe in the 'millionaire next door' mentality where people save every penny to become rich when they're 70. I’d rather enjoy my wealth now, live a life I enjoy, and have the freedom to make purchases without guilt. Life is short, and I want to live it fully.

What is your philosophy on success and wealth?

Success and wealth aren’t one-size-fits-all. There are different paths to achieving financial freedom, and each person’s journey is unique. What’s common among successful people is the mindset—being proactive, working hard, and being smart with money. That mindset is key to success.