0:02 The single greatest skill that separates
0:04 broke people from wealthy people is not
0:06 intelligence or luck. Okay? It is
0:08 mastering the psychology of money. I
0:10 went from being 100 pounds overweight,
0:12 broke, arrested six times to building
0:13 companies worth hundreds of billions of
0:14 dollars. And it is not because I'm
0:16 special. I am no different from you. Is
0:18 because [music] I stopped letting my
0:21 broke mindset run my actual life. So if
0:23 you want to build real wealth, you need
0:24 to break free from these six limiting
0:26 beliefs that are keeping you broke. The
0:29 first limiting belief or system of
0:30 beliefs that is keeping you poor is what
0:33 I call the money script. Every financial
0:34 decision that you make, what job you
0:36 take, how much you charge, how guilty
0:38 you feel spending a certain amount of
0:40 money, is all controlled by this
0:42 subconscious script that you probably
0:44 didn't even write yourself. And this is
0:46 actual science. There's research by
0:48 financial psychologists that talk about
0:50 the four types of money scripts that
0:52 predict financial behavior. And these
0:54 scripts are actually formed in childhood
0:55 before you're even conscious enough to
0:57 understand what money is. As I go
0:59 through each of these, I want you to
1:02 think about which one you unconsciously
1:03 follow yourself. I will tell you what I
1:06 am at the end or at least how I grew up.
1:08 Okay, the first one is a money avoider.
1:09 These people believe that [music] money
1:11 is bad and that they don't deserve it.
1:13 Okay, they will sabotage their own
1:16 success. They often work in helping
1:18 professions that have very low pay and
1:20 they feel guilty about wanting to have
1:22 money. So if you grew up hearing people
1:24 say rich people are greedy, money is the
1:26 root of all evil, that's probably the
1:27 script that you have in your head. Now
1:29 on the other hand, we also have money
1:30 worshippers. Okay? So if you're a money
1:33 worshipper, you believe that money will
1:34 solve all your problems and [music]
1:36 bring you happiness. Okay? So a money
1:38 worshipper, they chase money
1:40 obsessively, but they never feel like
1:41 they have enough. They hoard. They
1:42 prioritize [music] work over
1:45 relationships, always believing that a
1:47 certain amount of more money is going to
1:49 bring them happiness. Oh, I just haven't
1:51 made enough yet. I need to make a
1:53 million dollars. Now it's 10 million.
1:54 Now it's a hundred million in order to
1:57 be happy. Now there's the money status
1:59 script. People who suffer from the money
2:02 status script tie their self-worth to
2:05 their net worth. They overspend because
2:06 they want to keep up appearances, hide
2:09 their finances even from like spouses if
2:10 it's not what they think it should be,
2:12 and they feel anxious when other people
2:13 are wealthier than them. So it's like
2:14 the typical keeping up the Joneses. It's
2:16 like you're looking in the the yard of
2:17 your neighbor and you're like, "Dude, I
2:18 need to have a better yard than him."
2:20 Research shows that this script is
2:22 actually linked to lower well-being and
2:23 increased unhappiness. Now, [music] why
2:24 is that? Because you're constantly
2:26 comparing yourself. Right? The last one
2:29 is money vigilant people. Okay, these
2:31 are people who are chronic savers who
2:33 live below their means, but they
2:35 experience constant anxiety about their
2:36 financial future. They're usually
2:38 secretive about money. They never feel
2:40 secure even when they have plenty. So, I
2:42 want you to think about of those four,
2:43 you might be a mix of a couple of them,
2:44 but think about the one that you
2:46 identify with the most. Think about how
2:48 it affected you growing up. So, when I
2:50 went through these, I was like, I
2:53 definitely identify the most with money
2:54 vigilant, [music] which probably sounds
2:56 weird cuz you're looking at me and
2:57 you're like, I see jewelry and I see
2:59 makeup and hair and all. I'm going to be
3:01 really honest with you guys. I spend
3:03 nothing compared to how much money I
3:05 have. to the degree that when I had $100
3:07 million net worth, I didn't even want to
3:09 spend over a couple million dollars on
3:11 the house. In fact, I rented for three
3:13 years at that point in my life and
3:14 didn't even own a home. And that is
3:17 because it's the constant anxiety of
3:18 like never feeling secure even when you
3:20 have plenty. So, Alex actually knows
3:22 this about me, which is a terrible
3:25 habit. But when I feel like I'm not
3:27 making as much money or less profit for
3:29 a couple months, even though it affects
3:30 nothing about my personal life, cuz I
3:31 don't even take money from my business,
3:33 I just start to spend less money. I
3:35 don't look at things. I don't buy stuff.
3:36 I tell people, I'm like, "Don't buy
3:37 that. What are we doing?" I tell my
3:38 whole assistant team, I'm like, "Ah, we
3:39 don't [music] need that. No, let's cut
3:41 here. Let's go through our our finances
3:42 and cut stuff that we don't need." I
3:44 realized it was a pattern that I had in
3:45 my past that I was bringing into my
3:47 current day life that wasn't serving me.
3:50 And so something I tried to start doing
3:52 the last few times that's happened where
3:53 I've just felt that urge to spend less
3:55 money. I go spend more money. It's
3:57 probably a worse behavior, but it's
3:59 telling my brain like, listen, you're
4:00 going to listen to me. This is
4:02 irrational. I'm not going to listen to
4:04 you. And so I will spend money even when
4:07 I have that impulse not to to teach
4:09 myself it's okay because the evidence
4:11 shows it is. And whatever's happening in
4:13 my brain has nothing to do with what's
4:14 happening on the outside. So here's what
4:16 I want you to do. I want you to think
4:17 about the phrases that you heard growing
4:19 up. Maybe it's, you know, one, money
4:20 doesn't grow on trees, be grateful for
4:22 what you have, rich people are greedy.
4:24 Okay? Those things are not lessons.
4:26 They're other people's thoughts that you
4:28 took on. And so once they get written
4:30 into your subconscious, then they start
4:31 dictating everything about your life.
4:33 What jobs you take, how much money you
4:34 charge, what you believe you deserve,
4:36 how much money you spend, when you
4:37 should be anxious versus excited about
4:39 spending money. So, here's how we want
4:40 to rewire our brains to think about
4:43 money differently. Write down your
4:45 earliest memory about money. What did
4:46 your parents say [music] about it? How
4:47 did they behave with it? That's probably
4:49 your money script. And once you see it,
4:51 you can rewrite it. And so your new
4:53 script, for example, could be money is a
4:54 tool that lets [music] me create freedom
4:56 and help more people. Once you change
4:58 that internal script, your external
5:00 results will start to update. It takes a
5:01 lot of the emotion out of it. And once
5:03 you associate positive feelings with
5:05 that new narrative, you start to
5:06 actually see that your behaviors align
5:08 with it more. The next limiting belief
5:10 keeping you poor is what we call a
5:12 wealth ceiling. Here's the truth about
5:15 it. you will sabotage. Say it's a
5:17 $200,000 opportunity if you still see
5:19 yourself as somebody who only pursues a
5:21 $50,000 [music] opportunity. Now, why is
5:23 that? The amount of money that you have
5:25 is capped by how you see yourself. Just
5:27 [music] like the partner yet you have,
5:29 just like the job that you have, just
5:30 like the house that you live in, the
5:31 research on this is very clear. Your
5:33 self-concept acts as a [music]
5:35 thermostat. If you see yourself as
5:36 somebody who earns $100,000, you'll
5:38 unconsciously strive to [music] maintain
5:39 that level, right? And you will not
5:41 pursue a level above it. That's the
5:43 really important piece. Now, if you make
5:46 $150,000, you'll probably spend an
5:48 additional $50,000. [music] If you make
5:51 $80,000, you'll stress and work until
5:52 you're back at the $100,000. See what
5:54 I'm saying? [music] So, for me, for
5:58 years, I was I'm scrappy. I'm surviving.
6:01 I'm getting by. And I remember because I
6:02 got stuck [music] when I was in my first
6:06 job making around $85,000 a year. It was
6:08 like I created this identity around it.
6:09 I knew [music] logically that I could
6:12 make more, but one I remember the moment
6:13 I started making more, I started to
6:14 compete and then all my money started
6:16 going to competition fees. The second
6:18 piece is that I remember so many times
6:20 when I knew I was about to start making
6:22 more. It's like I would almost sabotage
6:24 myself by getting wound up in it. I was
6:25 like, "Oh my god, what if I up? What if
6:27 I mess up? What if I don't actually make
6:28 more?" And I didn't realize at the time
6:30 that that was like me regulating my
6:32 internal temperature. And so if your
6:34 identity is I'm somebody who struggles
6:35 with money, you find ways to keep
6:38 struggling. But if it's [music] I'm
6:39 someone who creates and manages my
6:41 wealth and can make more money if I
6:43 choose to, then you're going to find a
6:45 way to live that out. So here's how you
6:46 [music] change this. Okay? I want you to
6:49 write this down. I'm the kind of person
6:50 who. And then finish the sentence
6:52 honestly. Whatever your current
6:55 financial identity is. I overspend. I
6:56 underspend. I save [music] too much. I
6:59 save nothing. Then I want you to put a a
7:00 line down that piece of paper. On the
7:02 other side, write, I'm the kind of
7:04 person who builds and manages wealth
7:07 with ease. You don't need to feel like
7:08 [music] that person yet. You don't need
7:10 to act like them just yet. I just want
7:11 you to actually write it down and not be
7:13 repulsed by what you see on the piece of
7:16 paper. I'm serious. Every time you now
7:18 make a decision for money, I want you to
7:19 pull up that piece of paper. That's all
7:21 I want you to do right now. [music] And
7:22 the thing is is that the moment that
7:24 your self-image expands because you're
7:26 constantly reading that, reminding
7:28 yourself of it, writing a new sentence
7:29 to put in your brain, your income is
7:31 going to follow that. The next limiting
7:33 [music] belief people have is thinking
7:35 that they should buy liabilities instead
7:36 of assets. Maybe just not even knowing
7:38 the difference. [music] You were
7:40 programmed to consume, not to build
7:42 things. And that's why a lot of people
7:44 stay broke. Okay, Robert Kiosaki, he
7:45 wrote Rich Dad Poor Dad. One of the
7:46 first books I read on money, he put it
7:48 very simply. He said, "The rich buy
7:49 assets, the middle class buys
7:52 liabilities thinking they are assets."
7:53 Wealth is actually fairly simple. There
7:56 are two categories: assets, liabilities.
7:58 An asset puts money in your pocket. A
8:00 liability takes money out of your
8:02 pocket. And a lot of people spend their
8:04 entire lives buying liabilities and
8:07 wondering why they can't get ahead. They
8:09 ask, "Can I afford this?" Instead of,
8:11 "Will this pay me back? What's my return
8:14 on this?" Now, how do you know the
8:15 difference between an asset and
8:16 liability? I'll break it down in the
8:18 most common cases that you probably can
8:20 relate to. Your car, liability, okay,
8:23 loses value immediately. Has insurance,
8:26 which is Gas, maintenance,
8:27 happens to it all the time. your house
8:30 you live in. Liability. I know this is
8:31 very controversial, but it's true. You
8:33 have a mortgage, property tax,
8:35 insurance, repairs. It doesn't generate
8:37 income. The next one, a course that
8:39 teaches you a skill, asset. Now, how
8:40 does that an asset? Because it pays you
8:42 back through increased income because
8:44 you've invested in your skills. A rental
8:47 property. An asset. It generates monthly
8:49 income. A designer handbag, sadly, a
8:52 liability. Okay. Loses value over time.
8:53 Doesn't, you know, generate any income.
8:55 I've had that discussion with Alex
8:57 before. equipment for your business.
8:59 That is an asset if it helps you
9:01 generate more revenue. It's a liability
9:02 if you don't use it and just sits there.
9:04 So, when I started filtering all my
9:06 purchases through that, is this an asset
9:09 or a liability? My wealth compounded
9:10 because I realized I was like, my money,
9:12 if I don't put into either of these
9:13 things actually is just a liability.
9:15 Money sitting in the bank, it's just
9:17 deteriorating over time. So, my money
9:18 actually can become a liability if I
9:20 don't do something with it. And that's
9:21 when I really started learning how to
9:23 invest in things that create money, in
9:25 skills that create money, in learning
9:28 that creates money, and in assets for my
9:30 business that create money. Here's how
9:32 you can start spending on what matters.
9:34 Okay? I want you to look at the last 10
9:36 purchases that you made. And then next
9:38 to each one, simply write asset or
9:40 liability and be honest with yourself.
9:42 And then all I want you to do is just
9:44 commit the next time that you buy
9:47 something to just ask yourself, is this
9:49 a liability or an asset? Does it put
9:51 money in my pocket eventually, or does
9:53 it take money out of my pocket? The next
9:55 limiting belief is one of the hardest
9:57 ones to break. I know this because I
9:58 still find myself breaking it on a
10:00 continuous basis in the weirdest ways,
10:02 but that is the scarcity mindset. Okay,
10:04 this sounds crazy, but having a scarcity
10:06 mindset actually can make you dumber.
10:08 Here's the truth. You either operate
10:10 from scarcity or abundance. And I don't
10:12 want you to feel bad here because
10:14 [music] as humans, we are supposed to
10:16 operate from scarcity. Which one you
10:18 choose to lean [music] towards and train
10:20 yourself into will determine how much
10:22 money you make. The scarcity brain
10:24 really just says there's never enough. I
10:25 need to protect what I have. I need
10:26 more. [music] You know, if that person
10:28 has more, it means less for me. Think
10:30 about what that meant like a thousand
10:31 years ago. It meant like somebody else
10:34 has all the berries. And you're like, I
10:35 need more berries because I need berries
10:37 to feed my children and my pack. And
10:39 like you're trying to get their berries
10:40 because you're like, oh, you can't.
10:41 There's only a certain number of berries
10:43 and I need to make sure I get them and
10:45 not you cuz what if my family dies?
10:46 That's how your brain's working, except
10:48 it's working and thinking those thoughts
10:50 about something that is not finite. It's
10:51 something that's infinite. There is
10:54 money being made every day. Scarcity
10:55 actually changes your brain the more
10:57 that you give into it. When you perceive
11:00 resources as scarce that are not like
11:02 money, your cognitive bandwidth shrinks,
11:04 okay? You make worse decisions. You
11:06 can't plan longterm and you only focus
11:07 on immediate value. So, we need to
11:09 reprogram these thoughts. People with a
11:11 scarcity mindset, they hoard money. They
11:12 don't invest their money, right? Right?
11:13 They're only thinking short-term, got to
11:15 survive, right? And they see every
11:18 opportunity as a threat. If you can tap
11:20 into training yourself to have an
11:21 abundant mindset, everything will change
11:23 for you. Okay? Abundance [music]
11:25 mindsets. They say there's always more
11:28 to create. I can afford to invest. I can
11:29 afford to give some berries to my
11:31 neighbor. [music] I can take calculated
11:32 risks because there are opportunities
11:34 everywhere. And it is not a finite
11:37 resource. It is seeing the world and all
11:38 the things it has to offer as an
11:40 infinite pie rather than a finite one.
11:42 So for me, for example, when I operated
11:45 from scarcity, I was terrified to spend
11:47 money on things that made my life
11:49 better, made me better, [music] made my
11:51 business better because I felt like what
11:52 if what if I never make money again?
11:54 What if it [music] stops coming? What if
11:55 something changes? Especially in the
11:56 first few years of business, I want to
11:58 say the first three, it was really hard
11:59 for me to get out of that habit. And
12:01 then the shift actually really happened
12:04 when I realized money is almost infinite
12:06 nowadays, okay, but is renewable.
12:08 Skills, relationships, opportunities,
12:10 those things compound. And so the more
12:12 that I invest into myself and the more
12:14 and I invest in my business and the more
12:16 and I invest in my life, the more I get
12:18 back 10fold. And I realized that I
12:20 needed to train myself out of that
12:21 habit. So I'll tell you the first thing
12:24 I did. I hired a coach that was $40,000
12:26 a month when we were literally making
12:28 $50,000 a month, right? And my scarcity
12:30 brain was like, "Oh my god, you just
12:31 started making this money. Like you're
12:32 going to go broke. What if it stops
12:34 tomorrow?" My abundant brain was like,
12:36 "Well, you made 10,000 a month, then
12:38 30,000 a month. Now 40. Like next month
12:39 you're probably going to make a h
12:41 100red." and this skill is going to help
12:42 you make even more. And so I said, you
12:44 know what? I have to just ignore that
12:45 voice. I'm not going to listen to it. I
12:46 can have those thoughts. I don't need to
12:47 listen to them and follow their
12:48 directions. I can go with this one
12:51 instead. And the cool thing is that that
12:53 coach that I hired that was $40,000 a
12:55 month was the reason I was able to scale
12:57 one of my companies to the degree I did,
12:58 which then I was able to sell the
12:59 company for tens of millions of dollars.
13:01 I'm sure you're thinking, "Okay, but how
13:03 do you build an abundant mindset?" Okay,
13:05 here's what I want you to do. One is
13:07 just become aware of when you make
13:09 decisions from fear versus from
13:11 possibility. Okay? When you think I
13:13 can't afford this, I want you to reframe
13:16 it. How could I afford this? Simplest
13:18 thing you can do. The moment you stop
13:20 asking yourself, how do I protect what I
13:22 have? And you start asking yourself, how
13:24 do I create more of what I have? That's
13:26 when you start asking, I would say, like
13:27 higher level intelligence questions, and
13:29 you stop sabotaging your finances. And
13:31 that's the thing I realized for myself.
13:33 I was like, "Oh, I talk to myself like
13:35 I'm poor even when I was had a lot of
13:37 money to be honest." And it wasn't until
13:38 I realized that that I was like really
13:40 able to step into that next realm where
13:41 I was like, "I'm giving into like the
13:43 survival mechanism that exists in all of
13:46 us humans rather than retraining myself
13:48 into this abundance mindset. The next
13:50 step we have is loss aversion. Okay, I
13:52 want to define this for y'all. Loss
13:55 aversion is why you keep losing [music]
13:57 investments, avoiding risk, and
13:58 basically staying stuck where you are."
13:59 Because if you want to break this
14:01 limiting belief, I want you to listen
14:02 closely to what I'm about to explain.
14:04 There was a winning research by it was
14:06 like Daniel Conman [music] and some guy
14:09 named Amos. Okay? And it showed that the
14:11 pain of losing $100 [music] is
14:14 psychologically twice as powerful as the
14:17 pleasure of gaining $100. Losing feels
14:20 twice as bad as winning feels. This is
14:23 why as humans, we hold losing stocks,
14:24 you know, hoping that they're going to
14:26 recover instead of just cutting our
14:28 losses. We stay in dead-end jobs. We
14:30 stay in bad relationships. [music]
14:33 We don't negotiate salaries. We avoid
14:35 investing because the fear of loss
14:37 outweighs the potential gain. So for me,
14:39 for example, I stayed in a terrible job
14:41 for probably 2 years longer than I
14:42 should have because I felt like [music]
14:44 if I ended it, I was losing. But the
14:46 funny thing is like staying in that job
14:47 cost me way more. It was like money,
14:50 [music] mental energy, mental health,
14:52 who knows how many years off my life
14:53 because the fear of loss was bigger than
14:56 the logic of leaving. Your brain is
14:58 designed to protect what you have, not
15:00 to pursue what you could have. And that
15:02 is why most people never actually take
15:04 risks to build wealth. And then they
15:05 say, "Oh, there's something wrong with
15:06 me. I feel like what if I lose?" I'm
15:07 like, "There's nothing wrong with you.
15:09 You're a human. I don't know how many
15:10 times I have to say this. Like, we're
15:11 all wired this [music] way. I'm wired
15:13 this way. You're wired this way. If I
15:14 can do it, you could do it. Promise."
15:16 Okay. So, here's how you break that
15:19 cycle. You need to reframe every loss as
15:22 tuition. If you lost $50,000 on a
15:24 business venture, abundance is going to
15:26 say, "You paid $50,000 for an education
15:28 that will make you millions." When I
15:30 changed that frame for myself, the loss
15:31 stopped controlling me. In fact,
15:34 recently I had a business decision and
15:37 there was, you know, about a $3 million
15:39 delta between what somebody was saying
15:40 something was and somebody else was
15:42 saying something was. And I ended up
15:43 just going and agreeing with this person
15:45 because I said I think this is the right
15:47 way forward and I think that I actually
15:48 should have defined terms earlier in the
15:50 relationship to make it more clear and I
15:52 hadn't done that. And so, you know, when
15:54 I was telling the story about this, it
15:56 was just a week ago. I said, "Yeah, I
15:57 paid $3 million to learn this lesson."
15:59 And you know what? I would pay $3
16:00 million again to learn that lesson. The
16:02 last limiting belief might be the most
16:04 important one to break. And this is what
16:06 we call the time trap. Most people spend
16:09 their entire lives trying to save money
16:10 and that is what keeps them from making
16:12 money. Ironically, they forget that
16:14 money multiplies. But time doesn't
16:17 multiply. Okay? And that is why you want
16:19 to save time instead of saving money. So
16:21 here's what I mean. If you make $100 an
16:24 hour doing anything worth less than $100
16:26 an hour is costing you money. So, if you
16:28 spent 2 hours cleaning your house,
16:30 instead of hiring someone $50, you
16:33 didn't save $50, you lost $150 because
16:36 [music] 2 hours at $100 minus the 50 you
16:38 didn't pay. Wealthy people understand
16:40 this. They buy time. They hire
16:42 assistants, meal prep services,
16:43 housekeepers, not because they're lazy,
16:44 but because their time is worth [music]
16:46 more. They put it elsewhere. Guess what?
16:48 I didn't just do this now when I had a
16:49 lot of money. I did this when I first
16:51 had barely any money. The first thing I
16:52 hired was an assistant. When I was
16:54 barely had enough money to hire six
16:56 people for my team, I hired an assistant
16:58 because I said, "You know what? This is
16:59 what rich people do. They hire people to
17:01 get their time back. And if I have to
17:02 like take care of this and that in the
17:03 house, then like I'm not going to be
17:05 making money." And it was the best
17:07 decision I ever made. Whereas poor and
17:10 middle class, they tend to sell time,
17:12 right? They're trading hours for dollars
17:14 and do everything themselves to save
17:15 money and then wonder why they're not
17:17 getting ahead. And so when I started
17:20 filtering every decision through, does
17:22 this buy me time or cost me time,
17:24 everything changed. I stopped doing the
17:27 $10 an hour tasks, hired help, automated
17:29 things, and I focused really on the work
17:31 that was, you know, say $1,000 an hour.
17:32 And you can calculate how much money you
17:34 make per hour by asking yourself how
17:35 much money do I make in a year? And
17:37 divide it by how many hours a year there
17:38 are. That's it. So like right now, I
17:40 know how much I make per hours. So then
17:41 I'll ask myself, I even have it on one
17:43 of my ASA cards for people. I'll say,
17:46 "Is this worth, you know, $50,000 for
17:47 Lelaya to do this if it's going to take
17:49 an hour?" Now, here's the thing. If
17:51 you're able to do this, you will make
17:54 more money in less time, which then you
17:56 reinvest into more leverage. And then
17:58 that leverage creates freedom for you
17:59 because things that you have leverage
18:01 on, they take less of your time and
18:03 create money. They're how you get free,
18:04 right? So, how do you get out of that
18:06 trap? Calculate your hourly rate.
18:07 [music] Your annual income, divide it by
18:09 2,000 work hours. Then, audit your time.
18:11 Ask yourself, how many things am I doing
18:13 that are not worth this? My favorite
18:14 thing that somebody will do in one of my
18:16 companies is they'll come to me and tell
18:17 me that they're doing tasks that are not
18:19 worth how much I'm paying them. My
18:20 favorite thing in the world. I had
18:21 someone do it recently. They said, "Look
18:22 how many hours I'm spending on admin
18:23 tasks." And they had actually gone
18:25 through their calendar for the last 4
18:27 weeks and they calculated it and I was
18:28 horrified by how much time. And I
18:29 immediately hired them assistant and
18:31 they started literally 3 days ago.
18:33 That's all because anybody who thinks in
18:34 terms of getting a good return, I'm
18:36 going to hire that person for somebody
18:38 else as well. So here's my challenge for
18:40 you. I want you to pick just one of the
18:42 shifts from this video and I want you to
18:43 say, "This is the one where I think I'm
18:45 going to get the most gains. I'm going
18:46 to start [music] practicing it this
18:49 week." And if you like this video, don't
18:50 forget to check out my next one and subscribe.
