If I Wanted to Become a Millionaire In 2024, I'd Do This

Summary

The video emphasizes the importance of closing the 'performance gap' to become successful and wealthy. It encourages focusing on solving bigger problems to generate more value and income. The speaker highlights finding your 'value zone,' where your passions, skills, and what people pay for overlap. He discusses starting with a service-based side hustle for low startup costs and using passive investing strategies like stock 'pies' to grow wealth. The video stresses avoiding distractions, staying focused, and continuing to learn to bridge the performance gap and achieve long-term success.

Takeaways

• 💡 The performance gap is the difference between where you are and where you want to be. Closing this gap is key to success.
• 📈 The path to becoming a millionaire is more direct for those who focus on bridging the performance gap.
• 🔑 The amount of money you make is proportional to the perceived value you provide, and solving bigger problems leads to greater income.
• 🎯 The value zone is where your passions, skills, and market demand intersect. Finding this is crucial for both happiness and wealth.
• 🚀 A service-based business is an ideal starting point due to low costs, especially if you can operate it from a laptop in your spare time.
• 💰 Investing should be your passive income vehicle, helping grow wealth over time. The S&P 500 is a reliable long-term investment option.
• ⚖️ Focus is essential for success. Spreading yourself too thin across different activities can slow down progress toward your goals.
• 🛠 Overcoming obstacles instead of using them as excuses is vital to achieving dreams. Persist through challenges to reach your goals.
• 📚 Continuous learning compounds over time, contributing to long-term success. Stopping learning after school is a common mistake.
• ⏳ The compound effect applies not only to money but also to knowledge. Consistent growth and learning lead to wisdom and success.

Q & A

What is the 'performance gap' according to the video?

The 'performance gap' is the space between where you are now and where you want to be. It's the difference between someone who becomes a millionaire and someone who struggles. Closing this gap requires obsession and dedication.

What is the primary factor that determines how much money you make?

The amount of money you make is directly proportional to the perceived value you provide. The bigger the problems you can solve, the more money you can make.

How does the speaker suggest finding the 'value zone'?

To find the 'value zone,' create a Venn diagram with three sections: things you love to do, things you're good at, and things people will pay for. The intersection of these three is your 'value zone,' where you can achieve both wealth and happiness.

What is the difference between having a million dollars in assets and earning a million dollars per year?

Having a million dollars in assets means you own valuable things, while earning a million dollars per year refers to your annual income. To achieve both, the speaker recommends using two vehicles: an active vehicle for making money and a passive vehicle for investing.

Why does the speaker prefer a service-based business as a starting point?

The speaker prefers a service-based business because it requires minimal setup costs and can be done with limited resources, such as using a laptop. It's a practical starting point for generating income quickly.

What is the purpose of setting up 'pies' for investing?

'Pies' represent slices of different stocks. By creating a pie, you can allocate investments into various companies. For instance, investing $100 into a pie with Tesla, Meta, and Google would distribute the money among those companies based on your chosen percentages.

How can you manage your limited resources like money, time, and energy effectively?

To manage your resources, list everything you do in life and create a graph to assess how much money, time, and energy each activity requires. Then, focus on the most important activities to avoid spreading yourself too thin and slowing down your progress.

What does the speaker mean by 'shiny object syndrome,' and how does it affect progress?

'Shiny object syndrome' refers to constantly switching side hustles or business models whenever something becomes difficult. This lack of focus can prevent real progression and keep you going back to square one.

How can you differentiate between obstacles and excuses in pursuing your dreams?

Obstacles are challenges you need to overcome to achieve your dreams, while excuses are reasons you give yourself to avoid facing those obstacles. Overcoming obstacles is essential to closing the performance gap, while excuses will keep you from reaching your goals.

What is the compound effect, and why is it important in closing the performance gap?

The compound effect refers to the exponential growth of your knowledge, wealth, or skills over time. By continually learning and making incremental progress, you accumulate valuable experience and expertise that help close the performance gap and achieve success.