0:02 One of the most difficult, if not the
0:04 most difficult conversation to have in
0:06 the world is about money. Whether it's
0:08 with your partner, whether it's with
0:10 your boss, whether it's with your
0:13 family, even yourself, we all struggle
0:15 with thinking about money, talking about
0:18 money, monitoring our money, growing our
0:21 money. It's one of those things that can
0:22 end up being one of the greatest
0:25 struggles of our life. And it's sad
0:27 because so much of our life revolves
0:30 around it. I know that this episode will
0:33 transform your relationship with money.
0:36 How many of you are struggling to shift
0:39 from surviving to thriving? Maybe some
0:41 of you have tried budgeting, investing,
0:44 or saving, but still feel like your
0:46 financial growth is stuck. Do you feel
0:49 like you're doing everything right with
0:52 money, yet real financial freedom still
0:55 feels out of reach? Maybe self-doubt is
0:57 keeping you from reaching the financial
1:00 success you know you're capable of. I
1:01 can't wait for you to listen to this
1:04 episode because I want you to transform
1:07 your relationship with money and wealth.
1:08 The number one health and wellness
1:12 podcast J Shetty J Shetty the one, the
1:15 only J Shetty.
1:17 First up is Scott Galloway,
1:19 entrepreneur, professor and best-selling
1:22 author. He talks about the pursuit of
1:25 wealth versus riches. Have you ever felt
1:27 the pressure that you need to own a
1:30 home? Scott bust this myth and I can't
1:33 wait for you to hear his answer. What
1:36 does being rich even look like? Scott
1:38 talks about what does it mean to have a
1:40 passive income that can exceed your expenses?
1:42 expenses?
1:44 Here's the truth. Everyone worries about
1:47 financial stability, even high paid
1:49 professionals. No matter your age, if
1:51 you're someone wanting a life of true
1:54 wealth, listen to this. There is a
1:56 certain pride of ownership. I think it's
1:58 situational where you are in life, how
2:00 much money you have, the city you're in,
2:02 but buying a home is meant to be an
2:04 enhancement to your life. It's not a
2:06 suicide pact and it may not may not be
2:08 right for everybody. Yeah. I think what
2:11 it gave people as a symbol was something
2:13 to pursue, right? We started talking
2:15 about you go to college, you get a
2:17 degree, you get a job, get married, you
2:19 get a house, you have kids, like it
2:21 became one of those temple things. And
2:23 so now when you take it out, it's almost
2:25 like what should people be pursuing,
2:27 right? If you got married, you got a
2:29 good job, you're working, you're with
2:30 your partner, it's almost like people
2:32 think they have to pursue. It's almost
2:34 like the assumption that you have to
2:36 have kids, it's the same assumption of,
2:38 oh, we have to buy a house. Yeah. So,
2:39 what should people pursue instead
2:41 financially when it comes to financial
2:45 security? The goal is um what I'll call
2:47 wealth. The goal isn't to be rich. Rich
2:49 is the things you see. Wealth is what
2:52 you don't see. And your pursuit should
2:54 be wealth or economic security. And this
2:56 is what wealth is. Wealth is having
2:58 passive income that's greater than your
3:00 burn. Uh two examples. I have a buddy
3:02 who runs M&A for a bulge bracket
3:04 investment bank. Makes between$3 and $10
3:06 million a year depending upon the
3:08 market. because it's all current income.
3:11 He pays 50% taxes between his ex-wife,
3:12 his home in the Hamptons and his Master
3:15 of the Universe lifestyle that he feels
3:17 he deserves. He hasn't saved a lot of
3:20 money and he spends most of it. And I
3:22 know that firsthand he has a lot of
3:23 sleepless nights wondering what happens
3:26 if the music stops. He is not he is not
3:29 wealthy. My father who is 94 between his
3:31 pension from the Royal Navy, social
3:34 security and he owns six washing washer
3:37 dryer machines and trailer parks where
3:38 he goes and collects the money with his
3:42 walker. He makes $52,000 a year. He
3:44 spends 48.
3:48 So he is saving money despite the fact
3:50 that he's not working. So his passive
3:52 income is greater than his burn. He is
3:54 wealthy. So you want to put yourself on
3:56 a track to being wealthy. You want to
3:58 say realistically, I can control how
4:00 much I spend. I just I've been coaching
4:02 this couple living in San Jose and
4:04 they're in their late 50s. I talk a lot
4:06 about young people and they say, "Scott,
4:09 we're in our late 50s. What do we do?
4:10 How much money do you have? What's your
4:12 house worth?" Da da da. And by the time
4:14 they're 65, they're not going to have
4:17 enough passive income to pay for their
4:18 lifestyle. I said, "Well, let's lean
4:20 into our strengths here. Why are you in
4:23 San Jose?" And they said, "Well, we've
4:25 always lived here." I'm like, "Well,
4:28 okay. your kids are gone and you just
4:29 mentioned you go to Costa Rica twice a
4:31 year. Why wouldn't you try and cut your
4:34 burn 40 40% and move to Costa Rica and
4:36 take that economic pressure away and
4:39 sell your house here? I think your kids
4:40 would love to come visit you in Costa
4:43 Rica. So the question is put yourself on
4:46 a path using basic math and what you
4:47 really think you're going to need in
4:50 terms of passive income such that at
4:52 some point ideally it's by the time
4:54 you're 40. It's usually not, but it
4:57 needs to be by the time you're 65 or 70
5:00 because that that release of of economic
5:04 anxiety frees you up to focus on what is
5:06 really important and that is deep and
5:08 meaningful relationships. So the reason
5:11 why I am so much happier over the last
5:14 10 years than I was kind of the first 45
5:18 years of my life is that economic stress
5:20 was always there for me. I was raised by
5:22 a single immigrant mother who lived and
5:24 died a secretary. I felt like there was
5:26 a ghost following us around telling us
5:27 we weren't worthy because we didn't have
5:31 money. Between college, student loans,
5:32 the dot bomb crash and the great
5:35 financial recession, I just never had
5:38 enough money to have passive income such
5:40 that I was done. Most and a lot of
5:43 people never get there. I got lucky. I
5:45 sold my last company about 10 years ago
5:47 for a lot of money. Now, unless I really
5:49 screw up again, which I've done a couple
5:52 times, I can focus on my relationships.
5:54 The the resting blood pressure of a
5:57 child in a in a low-inccome home is
5:59 higher than the resting solid blood
6:01 pressure of a kid in a middle or upper
6:05 income. I think the majority of divorces
6:06 are not a function of infidelity or a
6:10 lack of shared values. It's those
6:11 things, one or more of those things
6:13 might happen. And then the again the
6:16 incendiary on it is financial stress.
6:19 Twothirds plus of of uh divorce filings
6:21 are from women. And we don't like to say
6:23 this because we like to assume all men
6:24 are predators and all women are
6:27 virtuous. But when a man is under
6:30 financial stress, the reality is he
6:33 becomes less less attractive as a mate.
6:35 And that can lead to real stress in the
6:37 relationship. So, what you want to
6:39 pursue if you're not pursuing a home,
6:41 you want to put yourself on a path. You
6:42 want to get alignment with a partner.
6:45 You want to track your spending and put
6:47 yourself on a path to some level of
6:50 economic security of wealth by say the
6:53 time you're 65. And if you're young and
6:55 you're killing it, instead of buying a
6:57 bigger flat screen or a bigger TV or
6:59 maybe a bigger house, what if I started
7:04 saving 10, 15, 20, 30% of my salary and
7:07 I got wealth by the time I'm 40 or 45?
7:10 Because to be in America young and
7:12 healthy and have passive income that's
7:14 greater than your burn, you're just
7:17 going to have a wonderful life. So, it's
7:20 not acquiring anything. It's getting to
7:22 a point of economic security or wealth.
7:24 And that's a function of two things. How
7:26 much money you make such that you can
7:28 save. Key to wealth is not how much you
7:30 make, it's how much you save. And also
7:33 the thing you can control is your burn.
7:35 You know, I have a friend who ran a
7:37 hedge fund. It closed down. He makes
7:38 good money but not great money. Living
7:40 in Tribeca with three kids, needed a
7:42 million bucks a year to live that life.
7:45 Moved to Portugal. lives an amazing life
7:48 with a beautiful home, great food, child
7:50 care, great education on 400 grand a
7:51 year. I mean, these are these are
7:54 problems of privilege, but that has
7:56 taken the world of stress off his
7:58 shoulders. He now needs to make a very
8:01 good living, not an outrageous living.
8:02 So, but surround yourself with smart
8:04 people who can help you make these
8:06 decisions. But wealth is passive income
8:07 that's greater than your burn. When you
8:09 bring up the word money, most of us kind
8:12 of go blankfaced. We we want to reach
8:14 for a stress ball. We kind of you can
8:16 just sense that it's uncomfortable to
8:17 talk about it because we're almost
8:19 reminded of all the bills stacking up
8:22 and all of our expenses and we spent too
8:24 much on Tik Tok shop this week and you
8:26 know the reality hits and we kind of
8:27 don't want to talk about it don't bring
8:32 it up. How do we get out of that
8:34 stressful wiring? And and you talked
8:35 about it even there with your
8:37 background. Like I grew up in a family
8:40 where we didn't have the healthiest
8:42 relationship with money because we never
8:44 had enough or we always had just enough
8:47 and that was good enough. And that was
8:48 always like, you know, you're just
8:49 looking at your bank balance sitting at
8:53 zero all the time. Like how do we rewire
8:54 our relationship with money? Because
8:56 most of us have a stressful relationship
8:58 with money. Well, when you think about
8:59 how they how they help people who are
9:01 depressed, it's a combination of talk
9:02 therapy and if needed, some sort of, you
9:05 know, pharmaceutical intervention. I
9:07 think mental illness or mental
9:09 unwwellness around money. I think we
9:11 absolutely need to one have more
9:13 financial literacy. I think we should
9:15 have a class called adulting in your
9:16 senior year of high school that says,
9:18 "My kid can do derivatives, but I just
9:19 figured out he doesn't understand the
9:22 interest rate on his credit card." So,
9:24 young people need a certain level of
9:25 financial literacy. Also, I encourage
9:27 them to talk about money with their
9:30 friends. It's especially hard for men.
9:32 Women are disproportionately evaluated
9:34 based on their aesthetics. Men are
9:35 disproportionately evaluated based on
9:39 their uh economic vitality. So, for a
9:42 guy to say, hey, do you, you know, I
9:44 lost a ton of money in the market.
9:46 Should I sell it? Do I get a tax write
9:49 off? That conotes weakness. They're
9:51 worried that they're less attractive.
9:53 There's actually something very British
9:55 that you might relate to and that is
9:57 British people the best grade I
9:59 understand in Britain that everyone
10:01 wants is you get really high marks but
10:04 really low effort scores. You're
10:07 supposed to be accidentally rich. I I'm
10:10 so I'm such a baller and I'm so great at
10:12 what I do that I just accidentally
10:14 slipped and fell on a ton of money. No,
10:16 it's work. You got to think about it.
10:18 You got to talk about it. So, I
10:19 encourage people to talk to their
10:21 friends. And if you're comfortable, this
10:22 is how much money I'm making. This is
10:24 how much I'm saving. This is, you know,
10:27 taxation is really important. Well, what
10:29 if I move to Florida? How much money
10:31 would I save? You know what? If I buy a
10:32 house now, I heard there's something
10:35 called 1031 exchange where I can roll
10:38 into my next property tax-free.
10:41 Talk about money. Get get really good at
10:42 it. Roger Federer, do you think he never
10:44 talks about tennis? Talks about it all
10:47 the goddamn time. You do you want to be
10:48 great at money? Most people say, "Yeah,
10:51 I want to be great at money." Is anybody
10:53 great at anything? If I'm If I wanted to
10:55 be an amazing evolutionary
10:56 anthropologist, would I never talk about
10:58 it? Would I never bring it up in
11:00 conversation? Would I never want to talk
11:02 to other people about evolutionary
11:04 anthropology? If you want to be good at
11:07 money, put down the facade and start
11:09 talking to people about their
11:10 investments, how much money they make,
11:11 what they do with their money, how they
11:14 save money, what they do to try and
11:16 limit their spending. I talk about
11:18 stoicism. See if you can find a practice
11:21 where you get reward or a dopa hit from
11:25 exercise or relationships. Gify saving
11:28 money. My junior year at UCLA, I was in
11:30 a fraternity with mostly wealthy Jewish
11:32 kids from the f uh from the valley. And
11:34 there were five or six of us out of 120
11:36 guys. And everybody knew who we were. We
11:38 didn't have any money. We're always
11:39 laying on our house bills. Everyone
11:40 knew, oh, those are the poor kids, right?
11:41 right?
11:44 And one summer we all lived in the same
11:46 apartment building and we gified saving
11:49 money and we had a whiteboard and we
11:51 literally made a game out of it. In the
11:53 summer of 1985,
11:56 I survived for 12 weeks on 78 bucks a
11:57 week including rent. Because if I didn't
12:00 save 3,000 bucks by the fall, I wasn't
12:01 going back for my senior year in college
12:04 cuz I didn't have wealthy parents. And
12:06 if you can gamify saving money with a
12:08 partner, especially a romantic partner
12:09 that you can be totally transparent
12:12 with, God, that's powerful. We're
12:14 building something. We're going to save
12:17 a ton of money. Can we save five or
12:19 7,000 bucks this year together? And it's
12:22 going to be 8,000 next year and then
12:23 it's going to be nine. And with
12:25 compounding in five or six years, which
12:28 will go really fast, we have 60, 80, 100
12:32 grand. And having kids is, I think, the
12:34 most rewarding thing it has been for me.
12:36 I was I didn't plan to have kids, but it
12:38 was having kids with someone else and
12:39 and raising what feel like pretty good
12:43 citizens, but a close second was
12:45 building economic security with someone
12:48 else. We had total alignment, right?
12:50 We're going to save. We were transparent
12:52 around our expenses. We were generous
12:53 with each other. Oh, no, you should do
12:56 that. There's a very unhealthy dynamic
12:58 sometimes in relationships.
13:00 And this is sexist, but I found it to be
13:03 true. Where the dude uses money to
13:05 control his spouse
13:07 and the spouse turns it into a game of
13:10 how much money she can spend without him
13:12 knowing. And fortunately, that's getting
13:15 flipped a little bit or it's equalizing
13:17 because me women are doing so well.
13:18 Women under the age of 30 are making
13:20 more money in urban centers, more single
13:22 women own homes. But there's still in my
13:25 generation this very weird dynamic
13:28 between the sexes and money. But going
13:29 back to your original question, talk
13:31 about it, understand it. If you want to
13:34 be good at it, you got to get literate
13:35 at it. You want to bring it up with your
13:38 friends and you start learning. I spend
13:41 4 hours a week probably talking to other
13:44 people about my economic well-being,
13:46 what tax loopholes there are, where I
13:49 should be investing. I have a lot of
13:50 real estate. When interest rates come
13:52 down, at what point do interest rates
13:53 get low enough where I should be pulling
13:55 a second out and putting it in the
13:57 market, knowing if I have a 10-year
14:00 mortgage over 10 years, the market's
14:02 usually up about 7 to 9% a year. Does
14:05 that make sense? Right? Think about it
14:08 all the time. You're the average of your
14:09 five friends. You've seen that study.
14:12 Body mass, politics, sports teams. But
14:14 what's more interesting is one of those
14:16 five people will be more economically
14:18 secure, much more economically secure
14:21 than the other four despite not making a
14:23 lot more money. You want to know those
14:25 behaviors and those characteristics and
14:27 you want to model that person. But this
14:29 is something we all need to be more open
14:31 about. It doesn't make you less of a
14:32 man. You're not supposed to have a lot
14:34 of money when you're young. Everybody
14:37 screws up. I've been broke twice. In my
14:39 40s, I was broke. And that was really I
14:41 was too ashamed to admit that to anybody
14:43 else. It was like, well, you're supposed
14:45 to be smart and great at what you do,
14:47 right? So, I think being a little bit
14:50 more vulnerable, being open about it,
14:52 and getting tips and, you know, kind of
14:54 kind of rules of the road from other
14:57 people talk about it. Clip two is from
15:00 Cody Sanchez, founder, CEO, New York
15:02 Times bestselling author and champion of
15:05 financial freedom. She talks about how
15:08 to translate your skills into wealth.
15:09 You might have felt that you have
15:11 skills, you have talents, you have
15:13 abilities, but you don't know how to
15:15 monetize them. Are you someone who's
15:17 deciding whether college is right for
15:19 you? Or maybe you went to college and
15:21 got a degree in something you no longer
15:24 want to pursue. Degrees don't always
15:27 guarantee financial success. Practical,
15:30 transferable skills can matter more.
15:32 Companies increasingly value practical
15:35 skills over traditional degrees and Cody
15:38 talks about how to turn those into real
15:40 world value so that you're not chasing
15:43 your passions that may not pay off. I
15:45 can't wait for you to listen to this
15:48 clip to recognize how to turn your
15:50 skills into profit. And so I'd meet a
15:52 lot of young people who sadly have spent
15:54 so much money on their degree, are
15:57 really smart academically, but then that
16:00 skill doesn't translate into knowing how
16:01 to make their company more money,
16:03 knowing how to lead people really well,
16:05 knowing how to build functions, systems,
16:07 processes, and therefore it's like,
16:08 well, wait a minute, I just studied all
16:10 these years, but it doesn't translate.
16:12 Yeah, I think you're exactly right. I
16:15 mean, for a long time, we employed
16:16 people from the top universities and
16:18 financial firms. we would go out and we
16:19 would hand select them because that
16:21 would be an indicator of their grit,
16:23 perseverance, and potentially their
16:25 their intellect, their IQ. Now, by and
16:27 large, you're starting to see uh a lot
16:30 of the top institutions bypass that. You
16:31 know, Google doesn't mandate that you
16:32 have a college degree if you're going
16:34 into an engineering degree, actually.
16:35 And I think that should be really
16:37 liberating for us. It's basically
16:39 breaking down this barrier that's a
16:41 six-f figureure barrier that allowed for
16:44 the few, the elites, to stair step over
16:46 everybody else. And now it's actually
16:48 saying how bad do you want it and don't
16:50 tell me what you learned, show me what
16:53 you can do or even better, show me what
16:55 you did. And so I think the resume of
16:57 the future is actually if somebody came
16:58 to you, Jay, and they were like, I just
17:01 graduated from Wharton. I am very smart.
17:03 You know, I also did my undergraduate
17:06 degree at Harvard. Um, I now want to
17:08 come work for you. You'd be like, what
17:09 do you know how to do? Do you know how
17:11 to market? Do you know how to grow a a
17:14 beverage company? um do you know how to
17:17 increase our uh investment return? Oh,
17:18 you kind of like theoretically have
17:20 looked about how to do that in a case
17:22 study. That's probably less interesting
17:23 to you than somebody that goes, you know
17:25 what, I was part of the beverage team at
17:28 Arowan and Whole Foods and I figured out
17:30 uh sort of across the country how they
17:33 buy different pieces of uh inventory.
17:34 Yeah, you got my attention already.
17:37 Right. Exactly. and and maybe because I
17:39 want to help you grow this individual
17:40 business, which I know you care about
17:42 because I see it on your socials, I put
17:43 together this little spreadsheet for
17:45 you. Here's the things they care about.
17:48 Could I come work for you for free for 3
17:50 or 6 months? And if that works out,
17:52 could we do something better and bigger?
17:54 The the problem that people usually have
17:55 on the internet when I throw out the
17:57 word work for free is young people are
17:58 like, remember that part where you told
18:00 us that we were broke and we don't have
18:02 any money? So, I'm not trying to dismiss
18:04 that at all, but I do think we have to
18:05 be honest about the fact that when we're
18:07 young, you're going to have to work
18:08 harder than you think, longer than you
18:10 think, doing stuff you don't like with
18:12 people you probably don't like until
18:14 eventually you get the right to do
18:15 something really interesting. But like,
18:18 you don't die in your first job from it
18:20 being really hard and challenging. You
18:22 die from the absolute monotony and the
18:24 low-level tasks you have to do for
18:26 basically pennies on the dollar. Yeah,
18:27 definitely. Definitely. Absolutely. I
18:29 fully agree. Let's say someone's 30
18:32 years old. Yeah, they've or 30 to 35.
18:34 They worked 10, 15 years after
18:35 graduating. They've been at the same
18:38 company, maybe they've moved once. I was
18:39 actually talking to someone like this
18:40 yesterday. She's been at this one
18:41 company for six years. It's a great
18:43 company. Great on her resume, but she's
18:45 like, I don't really want to be here. I
18:47 don't think this is where I see my
18:51 future, but I'm so scared of quitting.
18:52 I don't know how to invest. I probably
18:54 didn't save that much anyway. Now I feel
18:56 bad about it. I'm probably feeling a bit
18:58 of shame and guilt that I didn't save
19:01 that much over the last 10 years. What
19:02 would I do, Cody? Well, one, I would say
19:04 these days, you do not have to have
19:07 money to make money, which is incredibly
19:09 powerful. So, when I think about it, if
19:12 I'm 30 and I am at a company like that,
19:13 what would I do today? Well, I would
19:15 actually probably sit down and figure
19:17 out what am I actually skilled at that
19:19 somebody else would pay me for. Once you
19:21 know what somebody else would pay you
19:22 for, which is really just like, do
19:23 people ask for your opinion on this?
19:25 could you actually get jobs in this
19:27 space if it was me because I'm kind of
19:30 unemployable like you don't want me to
19:32 work for you. I like I got my own ideas.
19:33 I want to do things this way. If she's
19:35 like that, then what you want to do is
19:37 you want to try to partner with somebody
19:39 where you can be the solution to their
19:41 problem. And because you understand what
19:42 I call dealmaking, which is really the
19:45 language of money, you can negotiate an
19:47 ability for you to own part of a thing
19:49 in order for you to have one of three
19:52 outcomes. if she can figure out if she
19:54 can help a business grow its revenue,
19:56 make more money, if she can help a
19:58 business cut its costs, or if she can
20:01 help decrease the pain of a business
20:03 owner, you can negotiate your way into a
20:05 business and have equity in it and
20:07 upside. And I wish somebody had taught
20:09 me that earlier because this is what
20:11 consultants do. This is what private
20:13 equity firms do. This is what some of
20:15 the largest institutions in the world
20:17 do. I call it expertise to equity. But
20:18 if I was her, I'd say, don't go find
20:20 another job. And if you don't have a
20:22 brilliant idea that you're like, I would
20:24 die for the want of creating this thing
20:26 in the world. If you have that, please
20:27 go do it. But if you're like, I don't
20:30 have that. I just want to make money and
20:32 I want to feel respected and I want to
20:34 feel like my skills fit somewhere and
20:36 I'm able to have an outsized income. If
20:38 that's you, then I think you should try
20:41 to value your skill set. Then you should
20:43 try to negotiate for an upside deal with
20:45 somebody. And you should try your hand
20:47 at this game called ownership, which is
20:49 where you say, "Hey, small business, I
20:51 know how to market. Can I help you
20:52 market at the side while I'm working on
20:54 this company? And because I help you
20:57 grow your revenue by 50%. Could I keep
21:00 10% of the 50% I grow?" Do you think a
21:01 small business owner would say yes to
21:04 that? Of course they would. Because
21:07 there's no downside. And I think more
21:08 often than not, we think that the only
21:10 risk you can take in making money in
21:12 business is putting your own cash down.
21:14 That's a risk. or starting a business
21:17 aka dedicating your life to something.
21:18 The last part I'll get a little
21:21 statistic on us is 90% of startups fail
21:23 inside any rolling 10-year period. We
21:25 know that statistic. Most startups make
21:28 $0 for the first three years. After
21:29 that, the average entrepreneur makes
21:31 about $46,000 a year, which is great,
21:33 but not when you've been making zero for
21:35 three years. And then on top of that,
21:37 we've got this nation of of people who
21:40 have all these bills to pay, and they're
21:41 betting on hopes and dreams as opposed
21:44 to realities. And so my my commentary
21:47 is, can you figure out how to value your
21:49 skills so you can negotiate a little bit
21:50 more upside for that day where you can't
21:53 work anymore? Clip number three is from
21:55 one of my best friends, Lewis House, and
21:59 he talks about the mindset of abundance.
22:01 He talks about how a scarcity mindset
22:04 can limit financial growth, while an
22:07 abundance mindset opens doors to wealth.
22:09 If you've grown up with limited
22:12 resources, it may have shaped how you
22:14 view money. He talks about the
22:16 importance of practicing gratitude with
22:19 money, no matter how little or how much
22:21 you have. And we get to talking about
22:24 both of us rewiring our relationship
22:27 with money so that you can actually
22:29 attract more abundance. If me and you
22:32 went back to a place in our life where
22:35 we really didn't have money. Yes. And
22:37 you think about someone who's in that
22:38 position, who's listening to us right
22:40 now, and in their head they're thinking,
22:45 "But how do I become abundant when I
22:47 don't have where like my natural thing
22:48 is like I'm just struggling to pay my
22:50 next bill?" And me and you have both
22:52 been in those situations. I remember
22:54 when I was growing up, I grew up in a
22:57 house where we had just enough. Like
22:58 that was the language my parents used.
23:01 We have just enough. And my parents
23:03 would often argue about money. I
23:04 remember I wasn't allowed to buy cool
23:06 shoes and stuff. I'd have like the the
23:08 knockoff cheapest brand from whatever,
23:09 which was I actually didn't have an
23:11 issue with that. I didn't have an issue
23:12 with any of it because we had food and
23:15 that was my normality. But it's really
23:16 interesting because the amount of times
23:18 growing up I started working when I was
23:22 14. And I think that gave me a really
23:25 interesting sense of how hard it was to
23:27 make money because I started working at
23:31 14. And I used to get paid £2 per street
23:33 that I delivered newspapers on. So
23:36 imagine there's a 100 houses. It's going
23:38 to take me like not per house. No, no,
23:41 no. Per street. So I did five streets.
23:43 And so I'd get £10 at the end of the
23:45 week if I did five streets. And each
23:47 street would take me at least an hour,
23:48 maybe, I don't know, something like
23:51 that. And so I'd walk around, I'd pull
23:53 this thing and I'd deliver it. And I got
23:56 an understanding of how hard it was to
23:58 make money. But then that became a story
24:00 for me. Going to your point, making
24:04 money is hard. Making money is hard. And
24:06 that there's only a certain amount of
24:07 money you're allowed to make at this
24:10 level. Like you're a 14-year-old. Then I
24:11 worked in retail. I stacked shelves at a
24:13 grocery store. I worked at a store
24:15 called Morrison's, which is like working
24:18 at Walmart. And there I remember I got
24:21 paid like £5 an hour. And then you get
24:22 like time and a half if you work the
24:25 weekends and the evenings. All of this
24:27 to say that I probably spent my whole
24:30 life only seeing zero in my bank account
24:32 because everything that would come in
24:34 would pay for my phone bill, my car
24:36 insurance that I paid for, whatever it
24:38 was that I was taking care of. So, I
24:40 wasn't relying on my parents apart from
24:42 I lived in their home obviously. But I
24:44 always felt like money came in, money
24:47 went out. And my story around money was
24:49 people who have money are doing
24:52 something bad. So, I lived in a home.
24:54 Whenever we went to a friend's home and
24:56 they had a nice home, my family would
24:58 always say, "Oh, yeah, but they do dodgy
25:00 stuff to make money." All the language
25:02 around money was, "People with money are
25:03 doing bad stuff." So, in my head, it was
25:05 like, "Oh, if you have money, then you
25:07 must be doing shady stuff because we
25:09 don't have money and we're not doing any
25:10 shady." Right. You must be hurting
25:12 people to make money. Correct. In some
25:14 way, exploiting, taking advantage of
25:16 Yeah. taking advantage, whatever. So
25:18 everything you're saying is so true
25:20 because then when I got to a point in my
25:22 life where I was just trying to do good
25:25 and I had something like 150 200 million
25:27 views on content and you had no money. I
25:29 was 4 months away from being broke. I
25:30 met you at this time. I met you around
25:32 this time. I met you this time. Yes. And
25:34 it was really interesting to me because
25:37 that was the time that I was actually
25:38 doing this work, which is why this
25:40 book's so powerful because I realized
25:43 that I couldn't even with 150 200
25:46 million views. It wasn't that that made
25:49 money because my story and my
25:52 personality style was anxious. I felt
25:54 like it was wrong to make money. Like
25:56 that's actually what it was. I felt like
25:58 making money was bad.
26:01 And so until I got to that, did you
26:03 believe you were worthy of making more
26:05 money? I believed I was worthy, but I
26:08 believed that you had to be bad to make
26:09 money. Wow. So you didn't want to be
26:10 bad. You don't want to have a lot of
26:12 money and associate I have a lot of
26:15 money and I'm now I'm bad. Correct. I'm
26:16 bad and wrong and I'm hurting others in
26:18 order to help myself. Correct. Cuz good
26:20 people are poor. Wow. Right. Like to be
26:22 a good person of good character means to
26:25 not have money. Wow. And that was based
26:27 on a a belief system that you developed
26:38 story
26:41 how do we start to rewrite that story
26:43 now that we're aware. Well, it's so
26:44 powerful that you said that and I
26:46 remember this vividly because I met you
26:49 on Halloween 2017, right? Yeah. Eight
26:52 years ago. Yeah. And we I said like
26:54 cancel the day. Let's just hang out all
26:55 day. Yeah. You had a book coming out
26:57 that I had a book that came out that day
26:59 on Halloween. Yeah. Which is called The
27:01 Basking Masculinity. Anyways, how do we
27:03 rewire our brain around money to create
27:06 more abundance when you have nothing?
27:08 When you have lack, how do we rewire our
27:09 brain to create abundance when you have
27:11 nothing and you don't know how to earn
27:13 more money? The first thing I think you
27:16 need to be aware of is that your beliefs
27:18 dictate your behaviors. So if you
27:23 believe that money is bad or people who
27:25 make a lot of money are bad and take
27:28 advantage of others and therefore me
27:29 having lack right now means I'm a good
27:31 person and I don't want to become a bad
27:32 person. Then that belief is going to
27:34 dictate your behaviors and you're going
27:36 to stay in lack. You're going to stay in
27:38 scarcity and you're going to see
27:40 opportunities that only give you just
27:43 enough as opposed to opportunities that
27:44 could create incredible wealth for
27:46 yourself financially, but also an
27:48 emotional wealth that you've never had
27:50 before. So, that's one of the things you
27:51 want to understand is first that your
27:54 beliefs dictate your behaviors. That's a
27:55 big one, by the way. That's huge. Like,
27:57 that I just want to point that out for
27:58 people. Like that's so huge because your
28:02 belief your belief got you to a place of
28:04 I am impacting hundreds of millions of
28:06 people from these these videos that I
28:08 created with my talents but I don't know
28:10 how to make money with them and I don't
28:12 know if I actually should because then I
28:14 could be bad and wrong or people could
28:16 perceive me as I did something bad to
28:18 make this money correct and I'm a
28:20 spiritual person I'm a monk I've done
28:22 all these things I don't want to have
28:24 that life but I want to make an impact
28:26 and I don't want to be poor so I think a
28:27 lot of people are struggling with that
28:29 mindset. What are the other ones you
28:31 hear? What are the other focusing on
28:33 that beliefs period? What are you
28:34 hearing from people about their that's
28:37 my belief and that's very much my
28:39 history and story as you said. What
28:41 other stuff do you hear from people? The
28:44 biggest shift that will create abundance
28:47 in your life is a mindset habit in
28:49 unlocking wealth for yourself. And one
28:52 of the big lies or one of the big blocks
28:54 that holds people back from financial
28:57 opportunity is that I I cannot be
29:00 generous with my time, my wisdom, my
29:03 knowledge or my secrets to others
29:06 because if I am, they will take it and
29:07 run with it and I will be left with
29:09 nothing. So therefore, I'm going to
29:11 hoard my energy. I'm going to hoard my
29:14 time, my knowledge, and only keep it to
29:16 me so that others don't have good ideas
29:19 or have my help. And from all the
29:21 different billionaires and millionaires
29:23 and financial leaders in the world that
29:24 I've interviewed, I know you've
29:27 interviewed a lot of them, there is a
29:29 question I would always ask individuals
29:31 who've made incredible amounts of money
29:35 and that keeps helping them create more
29:37 wealth year after year. And they all say
29:39 the same thing, those who have had a
29:42 sustainably good heart in the process is
29:43 that you have to have a generous
29:45 mindset. So the mindset habit is the
29:46 first thing that you have to think about
29:48 when creating abundance with your money,
29:51 but also feeling abundant internally and
29:53 it's coming with generosity. So if you
29:55 feel like you're stuck right now, if you
29:57 feel like you have nothing, this was
29:58 what you were at 8 years ago when I met
30:01 you. This was where I was at 15 years
30:03 ago when I was on my sister's couch. I
30:05 had no money. I was in student loan
30:08 debt. I was sleeping on her couch. I
30:10 didn't think I had any skills. I didn't
30:11 have a college degree yet. I was like,
30:13 how am I going to make money if I don't
30:14 know how to make money and I don't have
30:17 any talent or skill and I'm in debt. It
30:18 didn't understand it. It felt
30:21 impossible. And the thing that I shifted
30:23 when I started meeting money mentors is
30:25 I needed to learn the first habit which
30:27 is the mindset habit which is a habit of
30:30 generosity and gratitude. So what did
30:31 that look like then? What was the
30:33 practical step? What it looks like was
30:36 how do I meet money people, people who
30:37 have money, people who have success,
30:39 people can teach me knowledge. I needed
30:41 to come with a sense of energy, of
30:44 curiosity, of possibilities, and of joy.
30:46 I literally wrote a list down of all
30:48 these different things that I thought
30:49 were my talents. I go, "How can I make
30:52 money? I don't have any skills. I played
30:53 football and now I'm injured. What can I
30:55 do for people?" But I was like, "Well,
30:57 I'm really curious. Maybe I can just ask
30:59 people questions." And never did I think
31:01 in a million years that I could have a
31:04 12-year-old podcast just asking
31:06 questions and make millions of dollars a
31:08 year. I never thought that was possible.
31:10 I was in my early 20s and I was like,
31:11 you know what? I've got a lot of energy.
31:13 I've got a lot of passion. So, let me
31:16 bring passion and energy to other people
31:18 and excitement. And that energy was
31:20 infectious. And there's a currency
31:23 that's tied to that energy of passion,
31:25 joy, excitement, curiosity. That
31:27 currency may not look like money, but
31:30 for those who are older, who have no
31:32 more passion, they're burnt out, they're
31:35 exhausted, it is the highest form of
31:36 currency. They want that. They crave
31:39 that energy. They've burned themselves
31:41 out for decades. They want to feel young
31:43 again. They want to feel curious again.
31:44 They want to feel excited again. And
31:46 when you come to someone with that
31:48 energy, you are bringing a different
31:50 mindset. So the mindset of curiosity,
31:54 joy, passion, presence, like just
31:55 connecting with someone and asking them
31:59 a question is such a valuable currency.
32:01 So we have to look into these untapped
32:03 skills, talents, currencies inside of us
32:05 that are hidden to others but inside of
32:08 us they can create magic. Yeah, that's
32:10 one of them. Another one is just being
32:12 generous with your time, with your
32:16 resources, with your ideas and helping
32:19 others succeed. I love that because I
32:21 didn't even know that then, but I was
32:22 doing it unconsciously. Yes, you were.
32:26 So, I really wanted to interview
32:28 incredible people, but I didn't have a
32:30 platform at the time when I met you. And
32:32 so, I'd partnered up with NASDAQ. And by
32:33 the way, just to be really clear with
32:35 everyone, I didn't get paid to do this.
32:38 So, NASDAQ had something where everyone
32:39 was using Facebook Live and I said,
32:42 "Hey, could I have an hour in the NASDAQ
32:44 building whenever I have an amazing
32:46 guest that says yes so that I can
32:50 interview them on NASDAQ Live?" And they
32:52 would put the picture up on the middle
32:54 of Time Square on a billboard. So now I
32:55 could reach out to people I looked up
32:57 to. That's the reason why I went on the
32:58 show. Exactly. So I didn't know who you
33:00 were until I saw, hey, I can get you on
33:02 a billboard on Time Square. I go, that's
33:04 value to me right now. I'm being
33:05 generous and I'm trying to find a way
33:07 because I don't have anything to offer,
33:09 but I admire you. And it was all people
33:10 I admired. It was yourself. It was Ryan
33:12 Holidayiday said yes. Me and Ryan had
33:14 met maybe once before that, but Ryan
33:15 came on that show. And there were a
33:17 bunch of other authors. Deepak Chopra
33:19 came on that show with me and it was all
33:21 people that I'd admired, looked up to
33:24 for a long time and exactly that that's
33:26 how first of all we became great friends
33:28 off of it. But the point is it's exactly
33:30 what you're saying that even though I
33:33 felt I had nothing to offer, I had to
33:35 find a way to create something to offer
33:37 someone of value. I didn't get paid for
33:39 it for that show. I didn't get paid to
33:41 run it. I didn't make any money from it.
33:43 But it created an opportunity for me to
33:45 connect with friends, to connect with
33:47 people that were doing incredible things
33:49 and of course allowed me to showcase my
33:51 talents so that then I could show it to
33:53 other people. I remember I had Ryan
33:56 Harwood on the show who founded Pure Wow
33:58 and he just sold it to Gary Vee and
34:00 that's how I met Gary. So Ryan came on
34:03 my show and he was just like, "Jay, I
34:04 love you. You're a great interviewer.
34:06 Like you have such great energy." He was
34:07 he really liked my passion and he said,
34:09 "You got to come meet Gary." And I was
34:11 like, "No way. like I love Gary. And so
34:13 he took me to meet Gary for the first
34:15 time. We had a meeting in his office and
34:16 that's how I built my relationship with
34:18 him. It was all thanks to Ryan. And so
34:20 when you think about it now, like when
34:21 I'm I've never thought about it until
34:23 what you're saying. Now when I look
34:24 back, Ryan's been on the podcast like
34:26 four times now, whatever. I love his
34:29 books. So many relationships came out of
34:31 that. And so I think when you live in a
34:33 world of I have nothing to offer and I
34:35 don't have anything, it becomes really
34:37 hard to create. And most people think
34:40 when I have nothing, I need to take from
34:42 someone else. Yes, I don't have
34:45 anything. So, I can't give anything if I
34:46 don't have it. So, I need someone to
34:48 give me money right now cuz I'm broke.
34:50 I'm poor. I'm stuck. I'm stressed. I'm
34:53 anxious. I can't think out of myself.
34:56 And this first habit is really gratitude
34:58 and generosity is the gateway to
35:01 abundance. And it may not mean you're
35:03 going to make money right away. We
35:09 you helped me over time. We helped each
35:12 other create more abundance together.
35:14 Not only financially, which we've done
35:17 together, but a type of richness that
35:21 isn't about money. And this book again,
35:23 it's it's a money book, but it's really
35:24 like it doesn't matter how much money
35:26 you have if you don't feel like you have
35:28 a rich life inside of you. That's real.
35:31 It does not matter how much is in your
35:33 bank account, how big your net worth is.
35:34 If you don't feel like you have an
35:37 abundant life, if you're stressed, if
35:39 you're overwhelmed, if you're anxious,
35:41 if you're constantly in drama, that is
35:45 not abundance. A high net worth does not
35:48 mean you are free. And the goal is for
35:51 us to feel free every moment of our
35:54 lives as often as possible and allow
35:57 money to be a tool to create incredible
36:00 opportunities, memories, moments where
36:01 you can be generous with it with the
36:03 people you care about, the causes you
36:05 care about, the institutions you care
36:09 about to serve more people and feel good
36:11 about doing it, not feel bad about doing
36:13 it. And that's part of this process.
36:16 Most people when they lack money, they
36:18 want to take from others. They want
36:20 someone to help them. And you need to
36:22 flip it on its head and say, "How can I
36:24 help others?" Even when I have nothing,
36:27 that is the time to be more generous and
36:29 in more gratitude and say, "Thank you
36:31 for this opportunity." Even if you have
36:32 to just lie to yourself for a moment and
36:34 say, "I'm stuck. I'm on my sister's
36:36 couch. I have no money. I'm 4 months. In
36:37 four months, I'm going to be out of an
36:38 apartment and I don't know where the
36:40 money's coming." Just say, "Thank you,
36:42 God. Thank you, Universe, for this
36:44 opportunity to learn. Yeah. This
36:46 opportunity to grow because I'll never
36:47 be here again. I interview I don't know
36:49 if you've had Ken Honda on, but he wrote
36:51 I know Happy Money, but I haven't had
36:52 him on. Dude, he's so cool. I love this
36:54 approach to this and he's talking
36:56 similar style about how do you just live
36:59 a rich life irrelevant of whether you
37:00 have money or not? And again, this is
37:03 what I want people to get to. When you
37:04 are poor, when you're broke, when you're
37:06 struggling financially, it feels really
37:10 hard to feel abundant and rich. And we
37:12 want to start shifting our thoughts, our
37:14 emotions, and our energy on, okay, I
37:16 know I'm in this financial situation. It
37:18 doesn't feel good, but in order to get
37:21 out of it, it's not feeling worse about
37:23 it. It's starting to feel better about
37:26 me, better about my values, my
37:28 character, my kindness, my generosity,
37:30 and seeing how can I add value to
37:32 others. And that's the first thing we
37:33 need to be thinking about. How can I get
37:37 into a richness inside of me to serve
37:40 others and take care of me at the same
37:42 time? And one of the practices or these
37:44 social experiments or exercises similar
37:47 to you that Ken has is that whenever
37:49 money comes to him, whether it's a
37:51 check, whether it's a Venmo payment,
37:53 whatever it might be, he just says thank
37:54 you to that money. He looks at that
37:57 number. If it's a penny, if it's a
37:58 million dollars, if it's your your
38:00 normal check you get coming in in the
38:02 mail every two weeks, he looks at it and
38:05 says, "Thank you." And literally opens
38:08 his heart and loves that money that
38:10 comes to him. He says, "Thank you. Where
38:12 do you want to go? Do you want to go to
38:14 my bank account? Do you want to go to my
38:15 savings? Do you want to go to
38:16 investments? Do you want to go towards
38:18 paying off debt? Do you want me to give
38:20 you away?" And it might be a weird kind
38:23 of like exercise, but I love this
38:25 approach to just being mindful of money
38:28 when it comes. Say thank you. And then
38:29 when you pay bills, when you pay off
38:32 debt, say thank you as well. Thank you
38:34 for allowing me to pay off this debt.
38:36 Thank you for paying my cell phone bill
38:37 so I can call my friends and family that
38:40 I love. Thank you for the ability to
38:43 live a richer life. Yeah. And when we
38:46 start to approach money in that way, it
38:48 doesn't mean money's going to fall from
38:50 the sky and come to us abundantly, but
38:52 we're going to start to feel more rich
38:55 and abundant internally, which that
38:57 energy is what will attract more
38:59 opportunities. Those opportunities could
39:02 lead to millions. this hostess that came
39:05 to you, she brought that thankful
39:07 energy, that present energy, that
39:10 loving, joyful, curious energy and it
39:13 created an abundance of opportunities
39:16 and connection. Next up is Jasperit
39:18 Singh who talks about the wealth
39:20 formula. Now, this was one of our most
39:22 popular episodes and I'm so excited for
39:24 you to learn from him. He talks about
39:26 the difference between building wealth
39:29 involving both saving and investing.
39:32 It's not an either or. He also talks
39:35 about understanding the formula. Income
39:39 minus expenses equals investments plus
39:42 savings. And investments are the key to
39:44 maintaining wealth even after making
39:46 millions. If you're someone who's been
39:48 wanting to learn more about investing,
39:50 this clip is for you. What are you doing
39:52 with your income? You can either build
39:54 the equity by starting a company
39:57 yourself or by building a home or you
40:00 can buy the equity. Now, how do you do
40:02 that? Well, you have to understand the
40:04 wealth formula. The wealth formula that
40:07 I come up that I've come up with is you
40:10 take your income minus your expenses and
40:13 that equals your investments plus your
40:16 savings. So, if you take your income,
40:17 the amount of money that you make, and
40:18 now you subtract all the things that you
40:20 buy, your rent, your mortgage, your car
40:22 payment, your groceries, your gas, you
40:24 take away all of your expenses, and if
40:25 you have a margin, well, now you have
40:28 extra cash. Now, you can save all or
40:30 some of this money, but if you don't
40:32 save some of it, then that money can be
40:34 put to work in your investments. These
40:36 investments, like I've been hinting at
40:38 is what makes wealthy people wealthy,
40:40 and it's what keep wealthy people
40:42 wealthy. These investments can be in the
40:44 stock market because anytime you buy a
40:45 share of any company, if you go out and
40:48 buy a share of, say, Amazon, you become
40:50 one of the owners of the Amazon
40:52 corporation, you get to share in the
40:54 profits. If the Amazon valuation goes
40:57 up, your stock price goes up. The second
40:59 way would be through real estate. Not
41:00 through your home, but through a real
41:02 estate investment, buying a rental
41:03 property that you're buying for the sole
41:05 purpose of making money. This is
41:07 something they can pay you every week or
41:10 every year, every month. Uh then it can
41:13 be through your own business or if you
41:14 don't want to build your own business,
41:16 you can invest in startups. It's much
41:17 more accessible now. You can own
41:19 physical gold. You can invest in
41:21 cryptocurrency if that's something that
41:22 you believe in. So, there's a lot of
41:24 different ways to build this equity, but
41:25 this is where now you need to be putting
41:28 your money to work to actually buy and
41:30 own and build this equity. Yeah, those
41:32 are I mean I first of all, I just want
41:34 to say I love how structured your
41:37 thinking is. And it's so great to break
41:38 things down. And so, anyone who's been
41:40 listening or watching so far, make sure
41:43 you go back and ask yourself which of
41:44 those habits you're struggling with. Are
41:46 you someone who's in the 2 S's choosing
41:49 to spend or save? Are you someone who's
41:52 being slowed down by systemic thinking
41:53 and like being controlled about where
41:56 that goes? Like really take a moment to
41:57 reflect in this episode while you're
41:58 listening. Which part you want to work
42:01 on? Because I know right now some of you
42:02 may be tempted to just turn this off and
42:04 go, I'm overwhelmed. I don't want to
42:05 hear about this. I'm scared about my
42:06 money already. I don't want to talk
42:08 about it. But I'm hoping that this is
42:11 creating space for you to really sit
42:14 down, introspect, and reflect. going
42:15 into that. I think one of the biggest
42:18 issues that people have when they hear
42:19 this, and I know that I had a long time
42:22 ago when I first heard this, was I don't
42:25 have enough to do anything with. And so
42:28 I remember when I started hearing about
42:30 crypto specifically, like very early on,
42:32 like I probably heard about it like
42:35 maybe like 13 years ago, probably the
42:37 first time. Yeah, I was very early heard
42:40 about cryptocurrencies about 12 13 years
42:43 ago. And I had just come out of the
42:45 monastery. So I didn't have any money.
42:46 Like I didn't I didn't have anything to
42:50 invest. And probably in about a year I
42:51 probably would have had like a,000 to
42:53 invest. In my head I go, that's not
42:55 anything. What's that going to do?
42:56 Right? And I think a lot of people have
42:57 that mindset. They're like, I only have
43:00 $500. I only have $1,000. Like what can
43:02 I do with that? I might as well spend it
43:04 on whatever it is because or I'm going
43:05 to save it because I need it for a rainy
43:08 day. What does someone do when they have
43:09 that mindset? When they're like, I don't
43:10 have enough. How how do you approach
43:14 that? So, when I was in high school, I
43:16 really wanted a Ford Mustang, but my dad
43:17 was like, "No, you can't buy a Ford
43:18 Mustang. I wasn't going to get that
43:21 car." Um, but this is again when stock
43:24 prices had crashed and the next best
43:26 thing if I couldn't buy a Ford Mustang,
43:27 this and I started reading the business
43:30 books then was how would I buy some of
43:31 the Ford stock? Again, I didn't have a
43:33 lot of money. My first investment in the
43:36 Ford stock was $2 because that's how
43:38 much the stock was trading for. Now it's
43:41 much higher. But what I'm trying to get
43:44 at is, you know, you can start with very
43:46 little amount of money. I mean nowadays
43:49 with the new age of stock brokerages, if
43:53 you have $10, you can start buying this
43:54 type of equity. You can start building
43:58 this type of equity. But the key now is
44:02 the consistency and how often like doing
44:04 it all the time. Because when I say
44:06 consistency, people say, "Oh, anytime I
44:07 have $100." Well, okay. But what you
44:09 want to do by consistency is make it
44:12 automatic. Anytime you get paid, take a
44:15 portion of that money and automatically
44:18 invest it. Now the next question is
44:19 probably where do I put this money? Do I
44:22 just throw it into Tesla or Amazon?
44:24 Well, if you're not willing to do that
44:26 level of research where you don't want
44:27 to try to find the best companies, you
44:29 don't want to invest in real estate, you
44:30 don't want to get into the more, you
44:32 know, let's say the more advanced type
44:33 of stuff, you want to just put your
44:35 money to work. Well, the simplest thing
44:36 you can do is look at something called
44:39 an ETF, which is an exchangeraded fund,
44:41 which gives you exposure not to one
44:43 company, but many companies, maybe
44:46 hundreds of companies. For example,
44:49 there's something called the S&P 500,
44:51 which is a group of the 500 biggest
44:53 companies on the stock market.
44:54 Essentially, the 500 biggest companies
44:58 in America. You can invest in the S&P
45:00 500 by investing in just one symbol. So
45:01 you invest in this one thing and you're
45:03 getting exposure to 500 different
45:05 companies. Now you don't have to worry
45:07 about what each of these 500 companies
45:09 are doing. You're just investing
45:10 essentially in America. The future of
45:11 the American economy. If that's
45:13 something you believe in, well now every
45:15 time you get paid, put in $100. And now
45:16 you just do this for the long term.
45:18 Whether the market is up or down does
45:19 not matter. It should not change your
45:22 strategy. You just keep passively
45:24 investing your money. Make it automatic.
45:26 Make it passive. That way you don't have
45:27 to even worry about it. And now you just
45:29 keep building it up because now it's the
45:32 whole idea of compounding. You don't
45:33 want to just throw your money in at
45:34 once. You want to put a little bit of
45:35 money and let that grow. Put more money
45:36 in. Let that grow. Put more money in it.
45:38 Let that grow. I made a couple videos
45:41 where I talked about two people. One was
45:44 a janitor. One worked in a school. Both
45:47 of them made very little income. Yet
45:50 both of them retired very wealthy. And
45:52 the reason with and I'm talking about in
45:53 the millions of dollars. And the reason
45:55 why they've been able to retire with a
45:57 million dollars plus was because they
45:59 took a little bit of money every time
46:01 they got paid and they just invested
46:03 that money. It did not matter, you know,
46:04 what else was going on in the world.
46:06 They always paid themselves first. They
46:09 always invested in assets before they
46:10 started going out and buying things that
46:13 made them look rich every single time.
46:15 And when you put that little bit of
46:16 money to work, whether you're starting
46:20 with $25 or $250 or $1,000, when you put
46:21 that money to work and you do that
46:24 consistently over time, you can build
46:27 real wealth. I mean, if you look at a
46:30 compound calculator, a few hundred a
46:33 month compounded from the age of 21 to
46:36 65, getting an average rate of return. I
46:38 mean, we're talking about millions. But
46:40 it just starts with making that small
46:42 investment first and being consistent
46:44 with it and always being willing to
46:45 learn. I love that and I'm glad you
46:46 brought that up because I think the
46:48 other option so as I was saying there is
46:50 the issue is I don't have enough. It's
46:51 not going to matter. Right. Like that's
46:54 one mindset. The other mindset is and
46:55 it's almost the opposite. It's the idea
46:57 of like but I want to make money quick.
46:59 Yeah. Right. And I feel like it's like
47:01 oh no but I want it now. And I think
47:02 there's this mindset, especially what
47:03 you keep saying about the how the
47:05 lifestyle's been portrayed. Yeah. That
47:07 we almost feel like people just change
47:10 their lives overnight and that they all
47:12 of a sudden have like a portfolio of
47:13 rental properties or they all of a
47:15 sudden have the nice house or the nice
47:17 car or whatever it may be and all of a
47:18 sudden we're wondering, well, how does
47:19 it happen that quick for me? And then we
47:21 get stuck in a get-rich quick scheme or
47:24 we get stuck in like some quick win. How
47:26 do it sounds like to me that one of the
47:29 biggest trainings is in the discipline
47:32 of being able to postpone pleasure.
47:34 Yeah. Because what you're saying in any
47:36 mark is it's going to take time. Like
47:40 you had to save up four 4 to 8,000 for
47:42 your first condo that you bought. First
47:43 of all, you had to work for that money.
47:46 You had to save that money so that you
47:47 could invest it. then you were able to
47:49 buy this 8,000 condo which which
47:52 obviously had has had great you know
47:55 growth I'm sure but there was a lot that
47:56 took to get to that whereas I think
47:59 right now people are like oh well I'd
48:01 rather spend the $100 on this right it
48:04 it's it's a real decade of sacrifice and
48:05 there's really no way around it if you
48:07 want to fast track your way now the best
48:09 investment you can make if you want the
48:11 better returns the bigger returns is by
48:14 investing your money in yourself and the
48:16 the tough part is you got to be willing
48:19 to go through that time and the effort
48:21 because you're right it takes time. I
48:23 you know unless you have that experience
48:25 already there you have the mentors you
48:26 have you know peerants people who can
48:28 guide you through it maybe you can
48:31 shorten it but I didn't have that so for
48:33 me it took me a solid decade to figure
48:35 it out to go from business idea to
48:37 business idea to business idea to get go
48:39 through failure over failure to get
48:41 scammed after scam to those things are
48:43 what teach you and when you're going
48:44 through it sucks you don't realize that
48:46 you're going through a lesson you just
48:48 feel like dang I just got screwed over
48:50 you know what I mean true but it's It's
48:53 you got to keep the goal, you know, in
48:56 mind and it's understanding what is more
48:57 important to you right now because
48:58 you're right, the last thing that you
49:02 want to do also is get into this idea of
49:03 just pinching pennies. Because at the
49:05 end of the day, a penny saved is just a
49:09 penny and the the thing that I can best
49:11 do to illustrate that is if you make
49:13 $40,000 a year and you're like, "Okay,
49:15 I'm going to put aside a quarter of my
49:17 income. I'm going to put aside $10,000
49:19 to save and invest." And then you start
49:20 putting your money to work and you're
49:22 like, "Oh my god, I love this. I want to
49:25 do more. I want to get better results."
49:26 So now you're like, "Well, I'm going to
49:29 try to put aside 30% of my income, 35%
49:30 of my income." And you keep trying to
49:33 squeeze this limited pie. But this is
49:35 where now it's about building that
49:36 growth mindset. And this is what wealthy
49:38 people are able to do where they say,
49:40 "Okay, sure, I can try to squeeze more
49:42 pennies out of the pie, but the other
49:43 thing that I could do is I'm going to
49:45 try to grow the pie. How do I go from
49:48 $40,000 to $400,000?"
49:49 And you know, you might hear that
49:51 thinking, how in the world am I gonna go
49:54 from 40 to 400 like it just sounds
49:57 impossible and so far away and at at
49:59 that point, yeah, it might seem the way,
50:01 but the first step, like you said, it's
50:03 that mindset. That's why I call minority
50:04 mindset, minority mindset, because all
50:07 success starts with your mindset. You
50:08 have to be wealthy here before you can
50:10 be wealthy in your bank account. And you
50:11 have to understand how your mindset
50:12 plays a part in it. Because now, if you
50:14 tell yourself you can't do it, you
50:16 can't. Yeah. But if you tell yourself
50:17 you can, then the next thing you're
50:18 going to do is you're going to say, "How
50:21 do I go from 40 to 50?" Yeah. 50 to 100.
50:22 You're going to start watching YouTube
50:24 videos. You're going to start putting in
50:27 work. And as you start to make more
50:29 money, now you're going to be able to
50:31 answer that question of what do I want
50:32 to do with this money? Do I want to go
50:34 out and buy a new Beamer or do I want to
50:36 go out and invest in my business? Do I
50:37 want to go out and buy a rental
50:38 property? Do I want to go out and invest
50:40 in stocks? Do I want to go out and
50:41 invest in a startup? And now you can
50:43 make these decisions because you have
50:44 that financial education. And this is
50:47 why, you know, anytime I talk about the
50:49 hows of, you know, things that I say you
50:51 should do to become wealthy, I always
50:54 talk about how you uh invest and grow
50:56 your money last. Because if you don't
50:58 know how to save that money, if you
51:00 don't know how to invest that money,
51:02 earning more money doesn't do you any
51:03 good until you know how to do that.
51:06 Because now earning more money has the
51:08 most impact because now you know how to
51:09 put that money to work. You have the
51:11 system. Yeah. And I'll give you a quick
51:14 example. Like the first time I made a
51:16 million dollar in a year, my car was
51:18 worth $500 that I was driving. I still
51:21 drive today that $500 car. Just last
51:22 week before I came out here to
51:25 California, my homeowner association
51:28 called me and they said, "Hey, Jos, uh,
51:30 we have a number of complaints about a
51:31 junk car sitting in your driveway." And
51:33 this is a true story. They said it's
51:34 been sitting there because I was in
51:35 California for a long time. and they
51:37 said it's been sitting there and uh
51:39 people say that you should take these
51:41 junk cars and put them in storage. And I
51:44 was like, well, for your information,
51:45 it's not a junk car. That is my car that
51:47 I take to and from work every single
51:49 day. It doesn't have a bumper on it. Um
51:52 but it works. And they were like, well,
51:54 you have to put it higher further in the
51:55 driveway so people don't see it. And I
51:57 was just like, oh my god, like you don't
51:59 get it. Like, you know, and it's not
52:01 that I can't go out and buy another car.
52:03 I I the way I look at it is, well, if I
52:05 want to go out and buy a $150,000 car,
52:07 which I can, I can go out and take this
52:09 cash and buy a car, or I can take this
52:12 $150,000 and put it back either into
52:13 real estate or into stocks or into my
52:14 business, because that's something that
52:16 I've been investing heavily in. Now, I
52:18 want to end this episode with a few key
52:21 takeaways. Real wealth starts with
52:23 strategic thinking and understanding
52:26 passive income. It's not from luck or
52:29 just hard work. Number two, it's about
52:31 building long-term financial security
52:34 and prioritizing investments over
52:36 instant gratification. And number three,
52:38 share this with someone who wants to
52:40 build lasting wealth because financial
52:43 freedom is the foundation of true
52:45 independence. And when you share these
52:47 tips abundantly, you'll be surrounded by
52:50 more people having positive, healthy
52:53 money conversations. If you love this
52:55 episode, you will also love my interview
52:58 with Charles Doohig on how to hack your
53:01 brain, change any habit effortlessly,
53:03 and the secret to making better
53:05 decisions. Look, am I hesitating on this
53:07 because I'm scared of making the choice,
53:09 because I'm scared of doing the work, or
53:10 am I sitting with this because it just
