How I Would Invest $1000 If I Were In My 20s
Summary
TLDRThe video emphasizes the importance of investing in education and skills development to increase earning potential, rather than solely relying on traditional investments like the S&P 500. The speaker argues that skills such as phlebotomy can significantly boost income quickly and encourages young people to live frugally and invest their excess money in courses, coaching, and mentorships. The goal is to build a solid foundation of marketable skills, which can lead to higher earnings and greater financial success over time.
Takeaways
- πΌ Investing in skills and education early in life can lead to significant income growth, potentially surpassing those with traditional four-year degrees.
- π¦ The speaker emphasizes that investing in assets like the S&P 500 or real estate can be profitable, but it's not the best way to actively increase one's earning capacity.
- π The importance of investing in oneself, particularly in education that increases earning potential, is highlighted as a smart financial move.
- π‘ The concept of 'value creation' is introduced, where one's ability to solve problems and provide value to the marketplace is the key to making money.
- π The speaker suggests that spending money on certifications, like becoming a phlebotomist, can quickly increase one's earning potential and is a worthy investment.
- π± The idea of living frugally and investing excess money in education is promoted as a strategy for wealth creation.
- π° A monthly investment of $2,000 in courses, coaching, mentorships, workshops, and seminars is presented as a way to continuously improve one's skills and earning capacity.
- π The speaker dispels the myth that real estate investments are passive; they require active engagement and effort to be successful.
- π The transcript suggests that continuous learning and skill acquisition, rather than a single four-year degree, can lead to higher income and success.
- π€ The value of learning from multiple sources and not just one 'guru' is highlighted, as it reduces the risk of a poor investment and broadens one's knowledge base.
- π The importance of replicating successful strategies before iterating and adding personal flair is emphasized for effective learning and application.
Q & A
What is the main point the speaker is making about making more money than those with four-year degrees?
-The speaker argues that by investing in oneself through education and skills training, one can potentially earn more than those with traditional four-year degrees, especially if they start early and focus on increasing their earning capacity.
What is an example of a quick certification that can significantly increase one's earning potential mentioned in the script?
-The speaker provides the example of becoming a certified phlebotomist, which can increase one's hourly wage from minimum wage to around $25 an hour.
What does the speaker consider a 'safe' investment in terms of personal finance?
-The speaker suggests that investing in the S&P 500 or real estate, particularly when started early and over a long period, is a safe way to generate income.
Why does the speaker believe that investing in stocks or day trading is not a good idea for increasing one's income?
-The speaker believes that investing in stocks or day trading is not a good idea because it is high-risk and can be seen as a cessation of the desire to make more income, rather than focusing on increasing one's skills and earning potential.
What is the speaker's view on the importance of investing in one's education to increase earning capacity?
-The speaker strongly advocates for investing in education that increases one's earning capacity, suggesting that it is more valuable than investing in traditional financial assets like stocks.
What is the speaker's advice for someone who is 20 or 30 years old regarding financial investments?
-The speaker advises that at any age, but especially for those who are young, one should live frugally and invest excess money in education and skills that will increase their earning potential.
What is the speaker's opinion on the value of a four-year degree in the current job market?
-The speaker expresses skepticism about the value of a four-year degree, suggesting that investing in targeted skill development and certifications can be more beneficial in the current job market.
What is the significance of the speaker's mention of 'the asset side of stuff' in the context of investments?
-The speaker uses 'the asset side of stuff' to refer to investments in traditional financial assets like stocks, which they believe should not be the primary focus for those looking to significantly increase their income.
According to the speaker, what is the key to building wealth through real estate investments?
-The speaker emphasizes that building wealth through real estate requires active involvement and time spent in the real estate market, not just passive investment.
What does the speaker suggest as a strategy for minimizing the risk of purchasing paid educational content?
-The speaker suggests following content creators on platforms like Instagram and YouTube to gauge the value they provide for free, which can indicate the quality of their paid offerings and minimize the risk of purchase.
What is the speaker's advice on how to approach learning from various sources in one's field?
-The speaker advises to learn from multiple sources, understand what each offers, and then integrate that knowledge to become just as good or better, emphasizing the importance of not just copying but also iterating on what is learned.
Outlines
πΌ Investing in Skills Over Traditional Assets
The speaker emphasizes the importance of investing in one's skills and earning capacity rather than traditional assets like the S&P 500 or real estate. They argue that by acquiring skills such as becoming a phlebotomist, one can significantly increase their income in a short period. The speaker suggests that the value one provides to the market and the problems they solve are the keys to wealth generation. They also advocate for living frugally and investing excess money in education to enhance earning potential, rather than traditional savings or passive investments.
π Skill Acquisition and Compounding Earnings
This paragraph discusses the strategy of skill acquisition to exponentially increase one's income. The speaker encourages identifying and learning from successful individuals in a chosen field, suggesting that by doing so, one can become just as good or better. They stress the importance of fully understanding and replicating successful methods before innovating. The speaker also highlights the value of broadening one's skillset, using the example of a videographer who also learns editing, social media, copywriting, and management. They argue that by expanding one's expertise, an individual can dramatically increase their earning capacity and become an entrepreneur, ultimately compounding their wealth at a much faster rate than traditional investments.
Mindmap
Keywords
π‘Investment
π‘Earning Capacity
π‘Phlebotomy
π‘S&P 500
π‘Education
π‘Day Trading
π‘Value
π‘Wealth Building
π‘Entrepreneurial Degree
π‘Coaching and Mentorships
π‘Skills Stack
Highlights
Investing in oneself by acquiring skills can lead to higher earnings than a traditional four-year degree.
Early investment in assets like the S&P 500 can be profitable but should be approached with a long-term perspective.
Day trading is discouraged as it's considered a less effective way to increase income.
The speaker emphasizes the importance of investing in one's earning capacity through education and skill acquisition.
Becoming a phlebotomist as an example of a quick certification that can significantly increase one's hourly wage.
The value of solving problems for others and charging for it is a key to making money.
The speaker argues that the biggest investment is in one's ability to earn money and provide value.
Living frugally and investing excess money in education can exponentially increase one's earning potential.
Investing in real estate actively requires time and effort, contrary to the passive income myth.
The speaker guarantees that investing in oneself can surpass the earning potential of those with four-year degrees within a year.
One-on-one coaching is highlighted as an effective way to learn new skills.
The importance of viewing educational investments as part of an entrepreneurial degree, not as a one-time wealth generator.
Learning from various sources can decrease the risk of purchasing educational content and broaden one's knowledge.
The concept of replicating successful strategies before iterating and adding personal flair.
The speaker discusses the importance of identifying missing 'bricks' in one's skill set to progress.
Skills can stack exponentially, and broadening one's horizon can lead to higher-paying roles.
The wealthiest individuals compound their wealth by focusing on increasing their earning capacity rather than passive investments.
Transcripts
i [Β __Β ] guarantee you that you will be
making more than people who have
four-year degrees you'll probably start
making money by the end of the first
year i was at brooke's house and she had
seven 20 to 23 year olds at her house no
cat one morning one of the guys was up
early and he was like hey right now i've
got a thousand extra dollars like where
do you think i should invest it you know
i've got my 401k and i've got you know
whatever stuff and it was cute it was so
interesting to me because like he was
looking for an investment vehicle that
was going to yield him a return i want
to be very clear about this if you
invest in the s p 500 you know real
estate things like that and you start
really early and you do it for a long
period of time you absolutely will make
money it is a very safe way to live life
but the moment you start investing in
kind of the asset side of stuff which is
like the s p stocks in general and
you're not day trading or doing that
stuff because that's that's stupid the
moment you do that is actually the
moment in my belief that you're actually
ceasing to want to make more income hear
me out if you're 18 years old and you
graduate high school tomorrow you are
now eligible on the marketplace because
you have no skills besides your high
school diploma you did no job [Β __Β ] off
the whole time don't watch youtube to
learn stuff which is not you but just
imagine in two days you could go and
become certified as a phlebotomist and
go from making 750 or whatever the
minimum wage is to what phlebotomists
make at 25 an hour you would triple your
earning capacity after two days and
spending 500 if you can triple your
income for the rest of your life the 500
certification in two days do you think
it's worth the investment
probably and so the problem is that
people think about the biggest
investment as the stuff that they take
their money and they put it into and i'm
gonna be over i'm gonna be trite right
now your ability to earn money to
provide value to the marketplace and
solve problems for other people is how
you will be able to make money there's
the value of the problem that you solve
and what you charge for it the bigger
that number is the more you can charge
that gap between their old problem and
the solution that value is the
percentage that you can take and put in
your pocket as something that you have
now created in this and it could be a
service it could be products it could be
whatever your earning capacity is going
to be the thing that generates you
wealth do you want to be smart with your
money and save it absolutely because
that gives you way more that you can
play with but when you're 20 even when
you're 30 and in my belief whatever age
you are i believe that you should take
all of the excess money live as cheap as
you can take a hundred percent of that
excess money and invest it in education
that increases your earning capacity
because what happens is when you take
that money like that phlebotomy course
right you take twenty five dollars an
hour time two thousand hours a year
you're not a fifty thousand all year
income cool if i can live on 20 because
i'm 20 years old and i can live with
buddies and we can eat ramen soup and
whatever and i got 30 left over after
taxes 25 whatever 25 grand can buy you a
lot of education i would rather you or i
would rather me or somebody who's 20 or
somebody who's 30 take 2 000 a month
because that's what 25 grand is and
invest it in courses coaching
mentorships workshops and seminars every
month i'm putting that 2k now you could
put 2k into one opportunities you're
like dude i think real estate's cool
cool we're not doing real estate as my
passive income we're doing real estate
is i'm gonna get into the real estate
game and i'm gonna make it my active
income and by the way everybody who
builds their wealth and real estate are
actively spending their time in real
estate don't believe what they're saying
they're like dude i did this deal and i
made x amount of money it's like what
was the process of finding deals how
many deals did you look at how many
conversations did you have how many
buildings did you walk how many
different general contractors did you oh
wait there is and there's other stuff
that has to happen right back to the
point let's say that you take that 2 000
a month and you do that for four years
and i'm not saying do the four-year
degree i think that is play if you want
to i don't necessarily agree with it
anymore in the marketplace that
currently exists four years later i
[Β __Β ] guarantee you that you will be
making more than people who have
four-year degrees you'll probably start
making money by the end of the first
year the amount of like copywriting
courses in books and programs
mentorships and even one-on-one coaching
like i think one-on-one coaching is a
phenomenal way to learn a new skill if
you're like hey i need to know how to
buy media i need to know how to run an
ad go pay someone who runs ads or
teaches people how to run ads when you
make that payment you're seeing it as
one class in your entrepreneurial degree
rather than this one twelve thousand
dollar investment has to make me rich if
you can make that shift it's like this
is my course like when you get your
degree in college you're not like oh i'm
going to take one class in spanish
graduate and get whatever job i want no
one thinks that way but for some reason
to think about that when it comes to
entrepreneurial stuff you're not paying
someone to think that they're going to
be your savior they're not going to save
you from your life do everything for you
no one person is going to teach you
everything i'll do my best on this
channel teach the stuff i know but you
have something to learn from everyone
you know like that wasn't the value that
i thought i was like you can still learn
from that you want to go to the person
who's providing the most value for free
it's the easiest way for you to decrease
your risk of purchase if you follow
someone's instagram you follow youtube
you see the stuff they put out you're
like dude this is really good like this
is a lot of new information that i
didn't know and it's like very tactical
and i understand like hey you already
know that you like the person b you
already know that you're getting value
from the person from the content they
have and so the likelihood that the
thing that they have that's paid is
gonna be worse than that is low you know
hopefully follow lots of people in a
particular space see the one that you
jive with the most you like their
teaching style you don't need to follow
this stuff for forever to like belabor
the decision give yourself seven days
because you know what's really even
cooler than buying one person's buy em
all and then you'll know what everyone
knows and then guess what happens you
become just as good or better now you're
making eighty thousand dollars a year
well now we've got four thousand dollars
a month that we can spend on coaching
and mentorships and learnings and
courses and whatnot i was saying to
myself like i'm gonna be the number one
student here i'll just do whatever they
say i'll see what happens and i'll do
whatever they say i'll see what happens
you wanna replicate before you iterate
before you say i'm gonna put my alex
sauce on before you do that just make
sure that you can duplicate what they're
doing because then you earn the right to
make the iterations even if it's not
perfectly your style copy it first
before you make the iterations if you
see it as a bridge that has many bricks
on it you have to lay all the bricks and
here's the bad part let's say you've got
30 bricks on this bridge to make your
first dollar the first dollar has to
walk across the bridge when you're 28
bricks in you might not have made the
first dollar yet but you're 90 of the
way there and the speed with which
people are able to traverse or cross
that bridge is how well they identify
which brick is missing and where they
put their attention that's where a lot
of people get disheartened is that they
will start building new bridges and get
two three bricks and then they'll start
building a new bridge two three bricks
and they have lots of half built bridges
and they never make it all the way
across let's say you're a videographer
or you like video stuff skills stack
exponentially you got a video skill now
you got an editing skill now you
understand social media messaging
copywriting and branding ooh management
and operations and leadership see how
that person starts to expand you can
imagine how their pay is going to
dramatically increase because now you're
a cmo broadening your horizon and going
deep in these other silos then all of a
sudden you're an entrepreneur one is you
have to make that decision that you're
not going to spend all your money on
stupid stuff the second is that you are
going to spend your money not on the s p
but on the s and me
what
is that you're going to spend it on you
because that thing is going to compound
a hell of a lot faster than 10 a year
you can double triple 10x your earning
capacity the people who are the richest
people in the world they make a thousand
times more jeff bezos made 40 million
dollars an hour last year
it's a lot
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