0:04 I'm Charlie Munger. I'm 99 years old.
0:07 I've been investing for over 70 years
0:11 and I'm worth about $2.5 billion.
0:14 But here's what nobody talks about. I
0:16 once started a year with less than zero
0:20 dollars. Negative net worth, broke,
0:23 divorced, drowning in debt, and watching
0:25 my 9-year-old son die of leukemia while
0:27 I couldn't afford proper medical
0:31 treatment. That was 1962.
0:35 I was 38 years old. Rock bottom. So when
0:39 people ask me, and they do ask me,
0:41 Charlie, if you had to start 2026 with
0:45 absolutely nothing, what would you do? I
0:48 don't have to guess. I lived it. I
0:51 clawed my way out of that hole once. And
0:54 if I had to do it again today, starting
0:57 this year with zero dollars, I know
1:01 exactly what I'd do. Not theory, not
1:04 hope, not some motivational garbage
1:07 about positive thinking. I'm talking
1:10 about a specific stepby-step plan based
1:14 on 70 years of actually doing this. a
1:16 plan that works whether the economy is
1:19 good or bad, whether the market is up or
1:23 down, whether you're 25 or 55.
1:25 Because here's the truth most people
1:27 don't understand.
1:29 Starting with nothing isn't your biggest
1:32 problem. Your biggest problem is that
1:34 you don't have a plan. You're making it
1:38 up as you go. You're copying what broke
1:41 people do, wondering why you stay broke.
1:44 I'm about to give you the exact plan I
1:47 used. The same principles that took me
1:50 from negative net worth to billions. And
1:53 if you're starting 2026 broke or nearly
1:56 broke or just feeling behind,
1:58 this might be the most important 40
2:01 minutes you spend all year. Because at
2:03 the end of this, you're going to know
2:07 exactly what to do. Month by month,
2:11 dollar by dollar. No confusion, no excuses,
2:12 excuses,
2:17 just the plan. Let's begin. First, let
2:19 me tell you something that might
2:22 surprise you. If I had to start 2026
2:26 with zero dollars in my bank account, I
2:33 because starting with nothing gives you
2:36 three massive advantages that rich
2:39 people don't have anymore. Advantage
2:42 number one, you can take risks they
2:44 can't. When you have nothing, you have
2:47 nothing to protect. No lifestyle to
2:49 maintain. No expensive house you're
2:52 terrified of losing. No country club
2:54 membership you're desperate to keep.
2:57 You're free. And freedom is the ultimate
3:00 wealth advantage. I see rich people all
3:03 the time. They're trapped. They make
3:08 $300,000 a year, but they spend $295,000
3:11 and they're terrified to take any risk
3:13 because they might lose their BMW lease
3:15 or have to pull their kids out of
3:18 private school. They're slaves to their
3:21 own lifestyle. You don't have that
3:23 problem. You're starting 2026 with
3:28 nothing. Good. You can move fast.
3:31 Advantage number two, your mistakes are
3:33 cheap. If you try something this year
3:36 and it fails, what did you lose? A few
3:39 hundred, maybe a thousand. That's
3:42 nothing. That's tuition. When I make a
3:45 mistake now, it cost me millions. When
3:47 Warren makes a mistake, it costs him
3:51 billions. But your mistakes, they're
3:54 affordable. So you can experiment. You
3:56 can try three or four different
3:58 approaches to making money this year.
4:01 One of them will work and the lessons
4:03 you learn from the failures will be
4:06 worth more than the money you lost.
4:09 Advantage number three, compound
4:12 interest hasn't worked against you yet.
4:14 You know what most people don't realize?
4:18 Poverty compounds, too. If you're 45
4:20 years old, starting 2026 with zero
4:23 dollars, you've been compounding bad
4:26 decisions for 25 years. But if you're
4:29 younger, or if this is just a temporary
4:32 setback, you haven't lost much time.
4:35 Every year you waste between age 20 and
4:38 40 cost you roughly $100,000 in
4:42 retirement money. But starting right now
4:44 at the beginning of this year with the
4:46 right plan, you can make up for lost
4:50 time. Now, I need to be honest with you.
4:53 Starting with nothing is an advantage,
4:55 but only if you actually do something
4:58 with it. Most people who start 2026
5:03 broke will end 2026 broke. They'll waste
5:05 another year. They'll make New Year's
5:07 resolutions on January 1st and break
5:10 them by January 15th. They'll blame the
5:13 economy, blame their boss, blame
5:17 inflation, blame politicians.
5:19 And in 12 months, they'll be sitting in
5:22 exactly the same place wondering why
5:25 nothing changed. Don't be that person.
5:27 Because I'm about to give you the plan
5:29 that ensures you don't end up back here
5:32 next year. If you follow what I'm about
5:34 to tell you, and I mean actually follow
5:36 it, not just nod along and then go back
5:39 to your old habits, by the end of this
5:42 year, you will have money saved. You
5:44 will have income streams that didn't
5:46 exist before and you will be on a
5:49 trajectory that leads to wealth. I've
5:52 watched this plan work for 70 years. It
5:55 worked in the 1960s when I was broke. It
5:58 worked in the 1980s when my investment
6:02 firm was small. It works today and it
6:04 will work for you this year. But you
6:08 have to commit to it. Not for a week,
6:11 not for a month, for the entire year.
6:14 Because wealth isn't built in moments.
6:17 It's built in years. And this year, 2026,
6:19 2026,
6:21 this is the year you start building. So
6:25 here's the plan. Seven specific steps.
6:28 Each one builds on the last. By the time
6:30 we're done, you'll know exactly what to
6:33 do in January, what to do in March, what
6:36 to do in June, and what position you
6:38 need to be in by December. Let's start
6:42 with step one. Step one starts right now
6:45 in January, and it's simple. Stop the
6:47 bleeding. If you're starting this year
6:49 with zero dollars, it's because money is
6:51 leaving your life faster than it's
6:55 coming in. That has to stop immediately.
6:58 Not next month. Not when you feel more
7:01 stable. Today, here's what I'd do on
7:04 January 1st if I woke up broke. I'd
7:06 write down every single place money
7:09 goes, every subscription, every monthly
7:12 payment, every habit that costs money,
7:15 and then I'd cut half of it. Car
7:17 payment. If I'm broke, I don't have a
7:20 car payment. I sell the car, buy a
7:24 $3,000 used Honda Civic with cash, and I
7:27 eliminate $400 a month in payments plus
7:32 $150 in insurance. That's $550 a month I
7:35 just freed up. Over 12 months, that's $6,600.
7:37 $6,600.
7:39 That's not nothing when you're starting
7:43 from zero. Eating out, gone. I cook
7:46 every meal at home. rice, beans, eggs,
7:50 chicken, vegetables cost me maybe $5 a
7:52 day. Most people spend that on one
7:56 lunch. Over a year, that's a $4,000
7:59 swing from spending $3,000 eating out to
8:01 spending $1,800
8:03 on groceries.
8:08 Another $1,200 saved. Subscriptions,
8:10 Netflix, Spotify, gym membership,
8:12 whatever else is bleeding $10 here and
8:17 $15 there. gone. All of it. I can read
8:19 books from the library for free and do
8:21 push-ups in my living room. That's
8:25 another $50 a month, $600 a year. I'm
8:26 not telling you to live like this
8:29 forever. I'm telling you to live like
8:32 this for one year, 12 months. And in
8:35 exchange, you get your financial life
8:38 back. Most people won't do this. They'll
8:40 say, "I deserve to enjoy life while
8:42 they're broke." That's why they stay
8:45 broke. I'm 99 years old and worth
8:48 billions. And I'll tell you something,
8:50 the only thing you deserve when you when
8:52 you're broke is to stop being broke.
8:54 Everything else is a luxury you haven't
8:58 earned yet. So that's January. Stop the
9:01 bleeding. Cut everything that's not
9:03 essential. Live on less than you ever
9:06 thought possible because every dollar
9:07 you don't spend this month is a dollar
9:10 that starts working for you next month.
9:14 Step two, February and March. Two months
9:16 dedicated to one thing, earning more
9:19 money than you've ever earned before.
9:20 Here's what most broke people don't
9:23 understand. You can't invest your way
9:26 out of poverty. If you're starting 2026
9:29 with zero dollars, putting $50 a month
9:31 into index funds isn't going to change
9:35 your life. Not this year, not next year,
9:37 maybe in 30 years, but you need help
9:39 now. So, forget investing for the next
9:42 60 days. Your only job is to increase
9:44 income. If I was starting this year
9:46 broke, here's what I'd do. First, I'd
9:48 sell my time at the highest possible
9:50 rate. That means finding the most
9:53 valuable skill I have and selling it.
9:55 Can you write? Offer copywriting
9:58 services. Can you design freelance
10:01 graphic design? Can you code contract
10:04 software work? Can you speak clearly?
10:06 Cold calling for commissiononly sales
10:08 jobs. I don't care if it's not your
10:11 passion. We're not building a career
10:13 right now. We're building capital.
10:15 There's a difference. And here's the
10:18 key. I wouldn't work one job. I'd work
10:21 three. Full-time job during the day,
10:23 whatever pays the most. Freelance work
10:26 in the evenings, 3 to four hours.
10:29 Weekend gig, driving, delivery, handyman
10:31 work, whatever adds another $500 a
10:34 month. Most people will say that's too
10:37 hard or I'll burn out. You know what's
10:40 hard? Being 65 years old and broke. You
10:43 know what burnout really is? Working
10:45 until you're 75 because you didn't work
10:49 hard enough at 35. I'd work 70our weeks
10:52 for two months. February and March,
10:54 eight weeks of maximum effort. And my
10:57 goal would be to save $5,000.
11:00 $5,000 doesn't sound like much, but when
11:02 you're starting from zero, it's
11:05 everything because $5,000 gives you
11:08 options. It's your first bit of
11:10 leverage. It's proof that you can delay
11:13 gratification. And psychologically,
11:16 having $5,000 in the bank changes you.
11:18 You stop thinking like a broke person
11:21 and start thinking like an investor. So
11:23 that's February and March. Work harder
11:26 than you've ever worked. Stack income
11:29 streams. Save every dollar and hit
11:33 $5,000 by April 1st. Step three, April
11:35 through June. Now, we build the
11:39 emergency wall. Once you hit $5,000,
11:40 every instinct in your body will tell
11:44 you to invest it. Don't. Not yet.
11:45 Because here's what happens to broke
11:48 people who start investing too early. An
11:51 emergency hits, the car breaks down,
11:54 medical bill, job loss, and suddenly
11:56 they have to sell their investments at
11:58 the worst possible time, usually at a
12:01 loss to cover basic expenses. Then
12:04 they're back to zero and they quit. I've
12:07 seen this pattern destroy people for 70
12:10 years. They get excited, they invest
12:13 their first $5,000, and then life
12:15 happens and they're done. So instead,
12:18 from April to June, we're building the
12:22 emergency wall. That's $10,000 in cash,
12:25 just sitting there, boring, not growing
12:28 much, earning maybe 4% in a high yield
12:31 savings account. Most investment experts
12:33 will tell you this is stupid. They'll
12:36 say you're losing money to inflation,
12:38 and that money should be in the market.
12:41 Ignore them. They've never been broke.
12:43 They don't understand the psychology of
12:45 scarcity. When you've been broke, you
12:47 know that the worst financial position
12:50 isn't having cash that earns 4%. The
12:52 worst position is having no cash when an
12:55 emergency hits. So, for three months,
12:57 April through June, the goal is the same
13:01 as February and March. Maximum income,
13:04 minimum expenses. Keep working those
13:07 multiple streams. Keep living lean. But
13:09 now, instead of saving your first
13:12 $5,000, you're saving the next $10,000.
13:15 And here's what's going to happen by
13:18 June. You'll have $15,000 total. And
13:20 something will shift in your brain.
13:22 You'll stop feeling desperate. You'll
13:25 stop making decisions from fear. Because
13:28 $15,000 buys you time. If you lose your
13:31 job, you can survive for 3 to 6 months
13:33 while you find a better one. If an
13:34 emergency hits, you can handle it
13:37 without going into debt. This is the
13:39 foundation. This is what every wealthy
13:42 person has but nobody talks about. It's
13:44 not sexy. It's not exciting, but it's
13:47 absolutely essential. So that's April
13:50 through June. Build your emergency wall.
13:56 Get to $15,000 cash. And then only then
13:59 do we start investing. Step four, July
14:02 and August. Now we invest. But not the
14:04 way most people think. If you're
14:08 starting 2026 with nothing, you're not
14:10 ready for stocks yet. You're not ready
14:13 for real estate. You're not ready for
14:15 crypto or gold or whatever else
14:17 financial gurus are selling. You're
14:19 ready for one thing, investing in
14:22 yourself. Here's what I mean. You have
14:27 $15,000 saved. $10,000 is your emergency
14:29 fund. You don't touch that. But the
14:31 other $5,000,
14:33 that's your first investment capital.
14:35 And the highest return investment you
14:37 can possibly make right now is in your
14:40 own earning ability. If I was starting
14:41 this year broke, here's what I'd spend
14:46 that $5,000 on. One, skills that
14:49 increase my income. If I'm making $20 an
14:51 hour, I'd spend $2,000 on a
14:54 certification that gets me to $35 an
14:57 hour. Could be coding boot camp. Could
14:59 be real estate license. Could be truck
15:02 driving CDL. I don't care what it is as
15:05 long as the math works. Spend $2,000 to
15:10 earn $15 more per hour. That's a 750%
15:13 annual return on investment. Two tools
15:16 that let me earn money independently. If
15:19 I can write, I'd spend $1,000 on a good
15:22 laptop and software. If I can build, I'd
15:25 buy quality tools. If I can sell, I'd
15:28 buy inventory. The goal is to own the
15:30 means of production for my own income stream.
15:31 stream.
15:34 Three, networking and positioning. I'd
15:36 spend $1,000 going to industry
15:38 conferences, joining professional
15:40 groups, taking people to lunch who are
15:43 where I want to be. This sounds soft,
15:46 but it's not. Every major financial
15:48 opportunity I've ever had came from
15:49 knowing the right person at the right
15:53 time. Four, keep $1,000 as an
15:57 opportunity fund for deals that pop up.
15:59 Distressed goods you can flip, emergency
16:02 freelance equipment, whatever. Now, most
16:04 broke people will say, "But Charlie, I
16:08 want to invest in stocks." I know, but
16:10 stocks will still be there next year,
16:11 and you'll have more money to invest
16:14 with then. Right now, the best
16:16 investment is closing the income gap
16:18 between where you are and where you need
16:21 to be. So that's July and August. Invest
16:23 in your earning power, increase your
16:25 hourly value, build tools for
16:28 independence, and set yourself up so
16:30 that by September, you're earning
16:32 significantly more than you were in January.
16:33 January.
16:37 Step five, September and October. Now we
16:39 build the second income stream. By
16:41 September, if you followed this plan,
16:42 you're in a completely different
16:46 position than January. You have $10,000
16:49 emergency fund. You've invested $5,000
16:52 in skills and tools. You're earning more
16:55 per hour and you're still living lean.
16:56 Now, we build the thing that separates
17:00 you from everyone else. Passive income.
17:02 And I'm not talking about passive income
17:04 the way internet gurus sell it. I'm not
17:06 talking about dropshipping or selling
17:09 courses or any of that nonsense. I'm
17:11 talking about real income streams that
17:14 work while you sleep. If I was doing
17:16 this today, starting from where you are,
17:19 here's what I'd build. Option one,
17:22 dividend paying stocks. By September,
17:24 I'd have saved another $3,000 from
17:27 increased income. I'd put it into a
17:29 portfolio of boring, reliable, dividend
17:33 paying companies. Not exciting, not sexy
17:35 companies that make soap and toothpaste
17:37 and insurance. Companies that have paid
17:40 dividends every year for 50 years. At a
17:45 4% dividend yield, $3,000 generates $120
17:48 per year. That's $10 a month. Sounds
17:51 like nothing, right? But that $10 you
17:53 didn't have to work for. And next month,
17:56 you add another $300 to it. And the
17:59 month after that, another $300. By
18:03 December, that $10 becomes $40. By next
18:06 year, it becomes $200 a month. In five
18:08 years, if you keep feeding it, it
18:10 becomes $2,000 a month. That's how it
18:14 works. Option two, rental property down
18:17 payment. If I saved aggressively, by
18:20 September, I'd have $15,000 in my
18:23 emergency fund plus another $5,000
18:27 saved. That's $20,000 total. With FHA
18:30 loans, I can put 3.5% down on a small
18:33 duplex in a workingclass neighborhood. I
18:36 live in one unit. I rent out the other.
18:38 The rent from the other unit covers most
18:41 of my mortgage. I'm building equity. I'm
18:43 getting a place to live nearly free. And
18:47 in 10 years, I own a $200,000 asset.
18:51 Step five, September and October. Now,
18:54 we build the second income stream. By
18:56 September, if you follow this plan,
18:58 you're in a completely different
19:01 position than January. You have $10,000
19:05 emergency fund. You've invested $5,000
19:08 in skills and tools. You're earning more
19:11 per hour and you're still living lean.
19:13 Now, we build the thing that separates
19:16 you from everyone else, passive income.
19:18 And I'm not talking about passive income
19:21 the way internet gurus sell it. I'm not
19:23 talking about dropshipping or selling
19:25 courses or any of that nonsense. I'm
19:28 talking about real income streams that
19:30 work while you sleep. If I was doing
19:32 this today, starting from where you are,
19:35 here's what I'd build. Option one,
19:38 dividend paying stocks. By September,
19:41 I'd have saved another $3,000 from
19:43 increased income. I'd put it into a
19:46 portfolio of boring, reliable, dividend
19:49 paying companies. Not exciting, not
19:51 sexy. Companies that make soap and
19:54 toothpaste and insurance. Companies that
19:56 have paid dividends every year for 50
20:00 years. At a 4% dividend yield, $3,000
20:04 generates $120 per year. That's $10 a
20:07 month. Sounds like nothing, right? But
20:09 that $10 you didn't have to work for.
20:12 And next month, you add another $300 to
20:14 it. And the month after that, another
20:19 $300. By December, that $10 becomes $40.
20:22 By next year, it becomes $200 a month.
20:24 In five years, if you keep feeding it,
20:28 it becomes $2,000 a month. That's how it
20:31 works. Option two, rental property down
20:34 payment. If I saved aggressively, by
20:36 September, I'd have $15,000 in my
20:39 emergency fund, plus another $5,000
20:43 saved. That's $20,000 total. With FHA
20:46 loans, I can put 3.5% down on a small
20:49 duplex in a workingclass neighborhood. I
20:52 live in one unit. I rent out the other.
20:54 The rent from the other unit covers most
20:57 of my mortgage. I'm building equity. I'm
21:00 getting a place to live nearly free. And
21:03 in 10 years, I own a $200,000 asset.
21:06 Step six, November. This is the
21:09 discipline test. By November, you're
21:11 tired. You've been grinding for 10
21:13 months. You've been living lean. You've
21:15 been working multiple streams. And the
21:18 holidays are coming. This is where most
21:20 people break. They say, "I've been so
21:22 good all year, I deserve to treat
21:24 myself." And they blow $2,000 on
21:27 Christmas gifts and holiday travel in a
21:30 new wardrobe because I earned it. And
21:32 then January comes and they're back to
21:34 broke. I've watched this pattern for 70
21:37 years. November and December destroy
21:39 more financial progress than any other
21:42 months because people confuse earning
21:44 money with having money. Just because
21:47 you earn $60,000 this year doesn't mean
21:49 you have $60,000.
21:53 If you spent $58,000, you have $2,000.
21:55 That's the only number that matters. So,
21:57 here's what I'd do in November if I was
21:59 following this plan. I'd commit to
22:02 spending nothing extra. No holiday
22:05 inflation. No, this year is different.
22:08 I'd give gifts that cost nothing. My
22:10 time, homemade food, handwritten
22:13 letters. I tell my family, "I'm building
22:15 a financial foundation this year, and
22:17 next year I can be more generous, but
22:18 this year I need to finish what I
22:22 started." Some people won't understand.
22:24 Some people will judge you. Let them.
22:26 They're not paying your bills. And
22:29 here's what I'd focus on instead. I'd
22:31 review the last 10 months. How much did
22:35 I earn? How much did I save? Where am I
22:37 versus where I wanted to be? What
22:39 worked? What didn't? And I'd make the
22:42 plan for December. and beyond. Because
22:43 November isn't about celebrating
22:46 progress. November is about protecting
22:49 progress. It's about crossing the finish
22:50 line without tripping at the last
22:53 moment. So that's November. Hold the
22:56 line. Don't break. Stay disciplined
22:59 because we're almost there. Step seven,
23:02 December. This is where we plan your
23:05 next year. If you followed this plan,
23:06 actually followed it, not just thought
23:08 about it, here's where you are by
23:11 December. You have $10,000 emergency
23:14 fund. You have a second income stream
23:17 generating $50 to $200 per month. You've
23:19 increased your primary income by
23:21 learning new skills. You have tools and
23:23 certifications that make you more
23:26 valuable. And you've proven to yourself
23:28 that you can delay gratification and
23:31 execute a plan. In 12 months, you went
23:35 from zero to solvent. That's huge. But
23:37 here's the thing. You're not done.
23:40 You're just getting started because now
23:43 in December, we plan year two. And year
23:45 two is where things accelerate. In year
23:46 two, you don't have to build the
23:49 foundation. You have it. So now you can
23:52 take more risks. You can invest more
23:54 aggressively. You can start that
23:56 business you've been thinking about. You
23:58 can buy that rental property. You can
24:00 leave that job that's been holding you
24:01 back because you have six months of
24:04 expenses saved and a backup income
24:08 stream. Year one is defense. Year two is
24:10 offense. So in December, I'd sit down
24:13 and write out year two. What's my income
24:17 goal? What's my savings target? What's
24:19 the next skill I learn? What's the next
24:22 investment I make? What does my life
24:25 look like in 24 months if I keep this
24:27 up? And then I'd commit to it the same
24:30 way I committed to year one. Because
24:33 here's the truth. Most people never
24:36 start. Of the people who start, most
24:39 quit in the first 90 days. Of the people
24:41 who make it 90 days, most break in
24:44 November and December. But if you're
24:46 watching this in December and you
24:49 actually did it, you made it all 12
24:52 months. You're now in the top 5% of
24:54 people who try to change their financial
24:57 life. You're not broke anymore. You're
25:00 not desperate. You're not starting over.
25:02 You're an investor. You're building
25:04 wealth and next year you're going to
25:08 build even more. That's December. Plan
25:11 year two. Commit to the next level and
25:14 keep going. So that's the plan. Seven
25:18 steps, 12 months. Starting 2026 with
25:21 zero dollars and ending it with a
25:23 foundation for wealth. Let me be very
25:26 clear about something. This plan works.
25:28 I know it works because it's the same
25:31 plan I followed in the 1960s when I was
25:33 broke. The same principles Warren
25:36 Buffett followed when he was young. The
25:38 same approach every self-made wealthy
25:41 person I know used at some point. But
25:43 here's the thing nobody wants to hear.
25:46 Most of you won't do it. You'll watch
25:48 this video. You'll nod along. You'll
25:50 say, "Yeah, that makes sense." And then
25:52 you'll go right back to doing what you
25:54 were doing before. You'll keep spending
25:56 money you don't have on things you don't
25:58 need. You'll keep hoping something
26:00 magical happens while you do nothing
26:03 different. And next year, you'll be
26:05 sitting in the exact same position
26:08 wondering why nothing changed. Don't be
26:11 that person. If you're starting 2026
26:13 with nothing, you have a choice right
26:16 now. You can waste another year or you
26:19 can commit to this plan. Not for a week,
26:22 not for a month, for the entire year.
26:25 I'm 99 years old. I've been doing this
26:28 for seven decades. And I'm telling you,
26:30 if you follow this plan, in 12 months,
26:32 you will not recognize your financial
26:36 life. But you have to start. Today,
26:39 right now, stop the bleeding, increase
26:42 your income, build your emergency fund,
26:45 invest in yourself, create a second
26:47 income stream, stay disciplined through
26:51 the holidays, and plan your next year.
