Kind: captions
Language: en
everybody in America should be a
business owner however not everybody
should be in the business of starting a
company and not everybody should be in
the business of operating a company
so what does that mean well you can be a
worker and an owner right you this
concept of equity you have to understand
this because wealthy people are working
for Equity they're not just working for
a salary bringing this back to the idea
that there are habits that keep people
poor so one of them is living and
thinking in cash and so if you're
storing your money in cash you're not
buying assets like you were talking
about earlier things that you purchased
that give you money the company that
you're talking about building now the
company that I built those are assets
apartment complex and asset potentially
there's actually some complexities there
um but buying into the stock market
right assets right so
if you're thinking in cash and the cash
Supply is being inflated then your
buying power is going down so going back
to your point about the poor getting
poorer so we're pulling down their
buying power
um and then also just the way that you
start thinking like an entrepreneur
about like I don't have the upfront
Capital this is another mistake people
make oh that's okay for people that are
already rich they can do things that I
can't do but you weren't thinking that
right so you I'm sure went to people and
they said okay cool give us up from
money you didn't have it so you go on to
the next person but because you keep
going until you find the person that's
like okay word like come in throw your
party I'll take half up front you even
find Partners again paying them in
equity you're paying them with future
money that you don't currently have
right like that one thing alone is a
huge habit difference between people who
think I trade time for money right I go
and I work I give you my time you give
me that money nothing wrong with that
and it's it's the path that most people
will take right but for people that
really want to understand what we're
about to go through because this this
could be nothing in a year from now we
look back on this video and we think
whew thank God that it didn't get as bad
as it could right but we could also be
headed into a recession like a deep
Global recession that could last a year
or two years or more sure uh so getting
people to think more entrepreneurially
like you're laying out in the story I
just want to to orient people to the
fact there's nothing necessarily
different about you anybody can think
like that and get the kind of results
that you end up getting I think it kind
of goes back to what you were saying uh
it was maybe before we started rolling
where you said you were dumb and so you
asked a lot of questions for me I said I
was dumb because I don't really care
about risk I never even looked at risk
for me it was opportunity that's all I
saw and it was just a way for me to get
started and you know I was called stupid
and dumb all the time and nowadays if
I'm not called stupid it's probably not
a crazy enough idea and so that's kind
of exactly what you're saying I started
making this little bit of money and it
started to grow and it has some cash in
the bank and now I'm started reading
these books to talk about investing in
real estate I was like all right let's
try this so I was uh 19 at the time and
I started looking at real estate
investment properties and again I didn't
know what was normal and I took my MCAT
on August 22nd August 23rd I closed I'm
a first real estate investment property
it was a small 1 000 square foot condo
water foreclosure and I bought it for
eight grand it was a total price of the
condo and that's insane that same condo
sold for 150 Grand just a few years
prior and that condo then started paying
me 600 a month and now you talk about
staying your time for money see in the
beginning I didn't understand that
concept because when I was working in
this event planning company it was just
me if I didn't do everything nothing was
going to happen but then this real
estate investment property
changed the way I thought about it
because now all of a sudden this asset I
bought this condo it's paying me money
and I don't got to physically go host a
party I don't got to go flip pretzels I
used to work at Auntie Anne's pretzels
as well I don't have to go and do
something it was just there I owned it
and now this condo is paying me for just
owning the asset and now all of a sudden
I start thinking different I started to
get a little bit upset because I was
like well why was I never taught about
this we're not taught about investing
we're not taught about financial
education we're not taught about wealth
and and that's you know talking about
now money habits well how the next habit
you got to understand is is you got to
be able to ask questions because
if you don't understand the way the
system works they're never going to be
able to answer or ask the right
questions because the way that the
system works in across the board is you
know in a company you have the workers
then you have the owners it's kind of
like a overlap and sometimes the workers
are the owners some of them kind of in
the center but the workers are the ones
that are now working every single day
you get your salary the owners aren't
working for a salary they're working for
Equity profits
so they're hoping that now the workers
will be able to drive up the profit so
now the valuation of this asset is
higher now when you have the sort of
inflation who Hurts the Most the workers
your incomes don't grow to keep up with
inflation however the asset value which
is not the value of the company
disproportionately gets benefited
because now this money gets printed it
gets created out of thin air it flows
into assets and that makes the valuation
of companies for example to go up so now
you have these two things right you have
the workers and you have the owners this
is how the customer works so it it
it depends on what companies get that
money how did they decide so this is the
first time ever that they decide to buy
uh Company stock how did they pick Bundy
teeth Bond sorry uh so
who how does the FED decide I have no
idea how they decide however let's think
of it this way so stimulus checks went
out right people get cash you feel
wealthier in the short term your bank
account goes up some people took this
cash maybe they paid off some debt maybe
you go and invested this money but a big
chunk of people took this cash and then
they went out and they spent it well if
you need this money well yeah and you
had this whole range right some people
really needed it some people went to uh
Walmart they went to Kroger they went
somewhere and they bought groceries but
still the money where do they go they
went to Walmart Kroger and those those
companies have bigger profits because as
money was printed it goes into the hands
of people and then it flows to the
corporation other people went to Louis
Vuitton they went to Gucci they went to
the Apple Store they went to Lululemon
again who does that benefit so the money
was printed out of thin air somebody has
to pay a price for that the regular
person average people they have to pay
now higher taxes which is inflation in
this case yeah the invisible it's not a
true tax they'll be confused by that but
they get invisible tax right it lowers
your buying power lowers your buying
power the tax and then where does all
the money flow it flows now to whatever
you buy the wealthy the rich and so now
what do you want to do you know go back
to that system the other workers and the
owners everybody in America should be a
business owner however not everybody
should be in the business of starting a
company and not everybody should be in
the business of operating a company
so what does that mean well you can be a
worker and an owner right you this
concept of equity you have to understand
this because wealthy people are working
for Equity they're not just working for
a salary and so what you want to do now
is you want to understand okay I'm
working every day to get paid now what
are you doing with the salary either you
can take the salary and go out and spend
all of it or you can take some of the
salary now and work to build equity
maybe that's in stocks maybe that's in
real estate maybe that's in your own
company so if I buy stocks I'm buying
Equity You're Building Equity you're
literally buying ownership in companies
if you go out and buy a share of say
McDonald's you become one of the owners
of the McDonald's company and now when
the McDonald's valuation goes up you get
to share in that because the price of
your stock the value of your stock goes
up do you know the Wall Street Trapper I
do I've seen his videos with you dude
he's so dope so he talks about if I'm
gonna wear it I'm going to own it yeah
so if I'm gonna wear a Louis Vuitton
then I'm going to own Louis Vuitton
stock yeah and Ah that's so smart like
just be here's the like I know what this
video would have sounded like to me if
this was the first video I encountered
it's it's so heady it's just like oh my
God these ideas are so complicated right
so
going off of what you're saying let's
give people a waypoint here just to help
them anchor so we've got a few really
important ideas so one there's a saying
the hidden taxes you call it which I
love that idea so you've got inflation
now the government is trying to help you
I'm not even going to say that there's
anything Sinister they really were just
doing their best we got hit by the
pandemic who the hell knew what the way
out was going to be they work with the
FED they pump just a lot of money into
the system so we end up having what was
looking to be the greatest Global
depression since the Great Depression in
1929 but it only lasts for two months
because we end up injecting all this
money into the system right so cool the
catch is that the way to get that into
the system it can be give people money
directly which they did but the people
that really need it they're going to buy
groceries so it doesn't they're they're
still trading time for money in essence
right because they haven't broken that
cycle if the government's not giving
them money they don't have anything then
you've got people I'm talking averages
here you've got the middle class they're
going to Louis Vuitton oh word like I've
already got my groceries taken care of
so now I can go buy that handbag that I
want to do a little Instagram flexing
whatever right so they didn't help
themselves out but then you've got the
wealthy or the the educated that's
probably a better way to think about it
you've got the financially educated
because they're educated they owned
assets already which is the easiest way
the traditional way right for the fed
and the government to pump money into
the system is to buy assets right so
they're going to buy these bonds just to
keep it really simple this is overly
simplified but they're buying these
bonds so now you've got people like me
who was not a good investor but I can
afford a money manager and so the money
manager is like yo you need bonds not
now this was before sure so I buy the
bond so hey now I'm back by the
government because they know that they
can print money out of thin air so now
I'm getting this return on my money my
money's protected instead of being
deflated they're buying my assets so now
now I want people to know the wealthy
some of them myself because I'm I was
not financially educated as of two years
ago I'm only just now getting that way
so I've been a good entrepreneur a bad
investor
but because of that like the system is
I'm learning about it by asking all
these dumb questions and I'm really
seeing how it works so it's not like I I
was doing something nefarious for me to
get richer during this time it was just
like oh I need assets break the time for
money equation I've got all this risky
money in building my business I wanted a
more sure thing so then the bad thing
happens my sure thing gets taken care of
by the government and now it's like oh
it looks like you know the rich are
getting richer it's just education so
now getting into money habits the other
thing that you talked about is while
your friends were spending their money
at a party you're spending money on
building a business right like that
fundamental difference of spending it on
fun [ __ ] that goes away or equity in
this case your own company is a world of
difference yeah so I just want to Anchor
everybody background to those like money
habits you've got what all my mom would
have called pissing money away right
literally an alcohol you're just pissing
that money away yeah um or putting it
into something that's going to go to
work for you in your case it was a
business it was real estate yeah and if
people can just grab that fundamental
difference like of hey start thinking
about the world in this different way
they're going to be a huge step forward
and it's all a learning process because
I don't drink I don't smoke I never
drink but for me it was the only it was
it was a hustle right it was the only
way that I knew to kind of start making
some money
um and so it's how you start and you
learn and each one of the things that
you kind of do you're going to learn
something new and you're going to be
able to apply that to the next thing and
it really is that shift you know I call
it the minority mindset thinking
differently than the majority of people
because it's it's doing something
different most of us are taught just to
be consumers yeah we're tired time for
money you go buy cool things to flex
exactly and that's it we're never taught
to do anything else and I mean think
about the last time your teachers taught
you about the importance of investing
your money they don't know how to do it
either exactly they couldn't hope to
teach me and and so that's where you
have to be willing to go out of your way
to learn how some of these things work
because if you don't you're just going
to be a pawn in the system and it's very
unfortunate it sucks and you know this
is where I'm trying to help provide that
education because these are things I
never grew up learning these are things
that I wish somebody would have told me
uh you know I've seen it I see it as so
many people
I used to guest teach in Detroit public
schools whoa and you know these are good
kids
from rough areas a lot of times don't
have two parents in the home sometimes
don't even have a parent in the home
there were some kids who didn't have or
his mom is not around he was raised by a
gang just because there's no parents and
so they provided him shelter and it's
crazy because
you get stuck into a system a cycle
because you don't have any way of
learning or seeing anything else and you
know like one of the first times I was
there I asked the kids how many guys
have a job most of them raise their hand
most of them have an income and they're
in high school right they're going to
school and they're working and next
question is how many of you have a bank
account nobody not a single person had a
bank account Jesus man so I was like
what do you so how do you guys what do
you do with your money so we get a check
we go to the liquor store
we cash the check now the liquor store
owner is going to take you know one to
ten percent of that check oh God and
then what are you gonna do you're gonna
buy candy you're going to buy pop you're
going to buy a bunch of dumb stuff on
your way up and now you're left with
only half of your check and now what do
you do is it's just I like to call it
Net Zero thinking where if I have cash I
need to spend it I have 500 on a bank
account I got to make that zero if I
have a thousand dollars I gotta spend it
because we think oh my God if I had 10
grand I would go on this nice vacation
if I had 50 Grand I would buy this car
we think in terms of it's the consumer
mindset of if I have this money I need
to spend it but this is where we have to
break out of that and understand what
can we do differently and instead of
just spending all of this money and it's
much more difficult now because of the
higher cost of living but it's so much
more important now than ever
where you got to create this margin I
call it like an equation where you know
your wealth is really
you you take your income minus your
expenses and that's equal to your
Investments plus your savings so you
take your income whatever money you make
you subtract your expenses your houses
your home your clothes your car whatever
your expenses are and if you have some
money left either this money is going to
be saved or it's going to be invested
well if you have some money left you're
already you know doing something that a
lot of people are not doing you're more
than the majority of people right now I
just read a study yesterday seven out of
10 Americans across the border living
paycheck to paycheck 50 of Americans
that are making 250 000 a year are
living paycheck to paycheck that's crazy
it's not how much money you make it's
what you do with the money you make that
is so important and so now if you have a
buffer you're already better than the
majority of people now the question is
what do you do with it well we're taught
save it save all of it so your
Investments are zero and your savings
you're trying to grow that thinking that
you're trying to you're going to become
wealthy but you're never going to be
able to outsave inflation you're gonna
your savings are literally making you
poorer each and every day however you
don't want to just not save any money
you got to be strategic with it what I
like to say is there are three reasons
why you should be saving money you save
money for an emergency have somewhere
between three to twelve months worth of
expenses depending on your risk
tolerance save money for a big purchase
you want to buy a car you want to buy a
house you need some cash to do that
save money for an investment if you're
not saving money for one of these three
reasons
you are saving your money the wrong way
and it's making you poorer each and
every day now you didn't say save for
retirement you invest for retirement you
know you talk about retirement Detroit
we're about to face a big retirement
crisis because traditionally retirement
was what people like to call a
three-legged stool you had your Social
Security you had your pension and then
you had your own Investments or your
savings well a lot of people like to do
well pensions are something you only
written in history books anymore they're
a thing of the past so those don't exist
anymore
Social Security is running into a very
very very big dilemma because right now
if you are you know under the age of 45
the Social Security money that you're
paying isn't going to go to fund your
social security income it's going to
fund somebody else to retire because the
Social Security program has much bigger
expenses than income and so it is on the
path of being completely dried up of
just running out of money is this
because the younger demographics are
just a smaller cohort than the older or
there's a lot of reasons for it it's how
the Social Security money is spent it's
it's how many people are requiring
Social Security money how long people
are living for how long these Social
Security checks have to go out for a lot
of bad calculations bad investing and so
in the Social Security fund is now
drying up and so now everyone says well
I'm not worried about it because the
government can just print more money and
do bigger Social Security checks that's
what we're seeing this year we saw
between 2021 and now the biggest Social
Security raised errors between five and
six percent something in their range
which one is already not keeping up with
inflation so yeah you got a bigger
social security check but oh no it's not
buying you as much as you could have
last year
but then the second issue is just think
about that for a second if the
government is going to print more money
which means the FED is going to print
money give that to the government to
give you bigger Social Security checks
what does that mean you got a bigger
check
great but now the cost of things have
grown even faster than the growth of a
check you cannot out print inflation it
just creates more inflation and so you
know so you had the pension that's
that's essentially gone for the vast
majority people Social Security is not
going to be able to fund your retirement
which leaves people with the third stool
which is your own Investments now
traditionally users oh I'll save some
money save 10 of your income
that's not going to do it your savings
are going to make you poor each and
every day and the second thing is your
401k and you know it's a great start for
the average investor because now it is
like automatic putting a little bit of
money into some Investments however
your 401k was never ever ever intended
to be your sole investment plan the
founder of the 401K even came out and
said that the 401K has gone awry it is a
monster because now so many people are
hoping that they're going to be able to
rely on their 401k to retire and that's
not what it's intended for and it will
never be able to be enough for you and
so a lot of people have this false hope
that okay yeah whatever Social Security
will give me a little bit extra but my
401k will take care of me but that was
never the plan and so what does that
mean
your 401k just think of that like as if
you invest in your 401k your IRA that is
the absolute base
your savings are not going to do it this
is where you have to go out and invest
yourself and that's where oh my God how
do I do that we're never taught how to
do this we're never told how to do this
we're never given Direction on how to do
this so you have to be the one now to go
out of your way to start learning this
and thank God for YouTube because I'll
be decentralized education but the
question is now you have to be willing
to do it and you have to understand who
your teachers are because there's
there's crap on YouTube there's also
good stuff on YouTube and we're never
taught how to learn we're usually just
taught what to learn so now we have to
be willing and go other way to become
smarter to one start learning and
understand how do we learn the right
things and then apply it because the the
downfall with investing is it's risky
you got to be willing to get punched in
the face you have to be willing to lose
money because it's a part of the process
and it sucks it sucks losing money I
made a video on uh my YouTube channel
minority mindset where I went over my
worst real estate deal ever and the
reason why I made it is so you can see
look every real estate investor has got
at least one bad deal and to date that's
the only deal that I've ever lost money
on and I'll walk you through every
single bad thing that I mean because
everything that could have gone wrong
went wrong plus a whole lot more and it
is one of the biggest headaches of my
life
but my goal is you know yeah you can
laugh at me make fun of me but you're
gonna see like holy cow things can and
will go wrong so just anticipate it
because that's it's a real life tuition
you got to be willing to learn
um and and you know it's a price to pay
and it's one of those things where you
know just like with entrepreneurship
everybody wants to be successful as an
entrepreneur everybody wants to be rich
how many people are going to be willing
to get punched in the throat and keep
going keep getting back up and keep
doing it it's very difficult which is
why you know what not everybody should
be an entrepreneur try it but it's not
for everybody but everybody can work to
own this Equity right this ownership
these assets and everybody needs to
people's actions speak louder than the
words because if that's true you should
not have a Gucci belt if you don't have
that same amount of money in the market
you should not own a BMW if you do not
own any Investment Portfolio right I
mean it's just it's just a matter of
looking at what you do it doesn't matter
match with what you actually want if you
want to become wealthy
question answers yes okay what are you
willing to sacrifice yeah but BMW in the
driveway you got the Gucci belt of the
Louis Vuitton if you have this nice
stuff but you don't have the nice assets
your priorities are in the wrong place
and this is just a matter of you looking
at yourself in the mirror and being
honest with yourself and understanding
what you want and for a lot of people
more you know maybe this is a matter of
financial education maybe this is a
matter of preference but
many people would rather look rich than
be rich we just look at you know what it
is now if you dive a little bit deeper
are the people that want to actually be
rich who want to be rich today you want
to be rich tomorrow not be rich in five
ten years
and so what then what does that do it
then drives our actions if you're ready
to level up all you need to do is take
the steps with the curriculum and
Community that's going to get you there
enroll right now in Impact Theory
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so it's very difficult now to to
understand that hey I'm willing to
sacrifice not only the nice stuff today
but then also not do the attractive the
sexy the things that that are hot that
are making people so much money today
because I believe in this long-term
investment that has been time tested
because it's so boring but the reality
is that boring is where the real wealth
is built I always tell people boredom
kills more entrepreneurs it shows more
dreams than fear or failure it's it's
The Daily Grind like when to your point
about watching candles
when crypto was really popping off I had
to stop myself from watching it because
it was so fun and so exciting and I was
like you can't spend time there because
I'm I'm not going to want to watch it
when it's down so it's like you want a
system you want to set it you want to
forget it yeah and the if I could get
people to understand the psychology of
how money impacts you like oh my God to
your point about people would rather
look rich than actually be rich when you
think about what money really does for
you you have to understand Peak emotion
there's only so much emotional amplitude
that you can have in fact do you do you
have an image in your mind of the
highest emotional amplitude moment of
your life as where I felt the most
emotion yeah the the highest positive
emotion you've ever felt positive
emotions positive for sure you know
it's funny
um my wife
used to get really upset at me because I
never showed emotion and she was like
what's wrong with you like you never
like you never get excited you never
said I'm like look the only real emotion
that I feel is hunger I get hungry uh
I've changed this that's what a woman
wants to hear by the way if you get
hungry for you baby that's the only
thing I ever feel you might have a shot
yeah so I've evolved since then where
I've you know I'm working on that you
know but
I think you know the happiest is really
for me
being around my family and the people
closest to me and just laughing yes that
is my favorite thing in the world like
what yes what do I want I literally want
my friends and my family in one room and
us just joking around because I you know
we
we make fun of each other and it's not
enough mean way it's just the you know
our personalities when we laugh and have
fun
that is if I could think of my favorite
thing to do would be that maybe if you
want to take it one step further maybe
do it on the beach but you know it's
it's honestly it doesn't matter where we
are if you're in my basement eating some
whatever pizzas some Indian food and
just laughing yes so now I believe that
to be true of what you're saying it's
certainly true of what I know in my life
so I have had the fascinating experience
of uh I spend Christmas with my family
and my wife's family together and it's
amazing and I've done Christmases in
um middle class home and had an absolute
ball and I've done Christmases in a big
fancy mansion and had an absolute ball
and while doing it in the big fancy
mansion is fun especially because other
people they don't get to do very often
so like oh my God this is so cool uh the
the peak emotion is not higher yeah in
fact the highest amplitude emotion I've
ever had is when I was in high school I
got just in a professional play oh wow
and that meant that I got to skip
calculus
dude I was over them I got paid to be in
a play it was like the craziest thing
ever I was like I can't believe this is
really happening now I have had
millions of dollars show up in my
account like that and I'm telling it was
cool it was neat but it wasn't as neat
as getting cast in a professional play
where I made 75 a week yeah in high
school
there's only so much amplitude of
emotion you're ever going to experience
and I know no matter what I say to
people they're not going to believe me
they're going to have to go through the
same [ __ ] regular role I'm not saying
money isn't powerful money is incredible
I want to make more money because you
can do incredible incredible things with
it right I'm just saying that it doesn't
touch fulfillment it doesn't do the
things for people that they want it to
do yeah and so the reason I say that is
okay you're gonna be bored doing it the
right way it isn't going to be sexy
you're not necessarily going to be able
to flex it's going to take decades but
it will work and it actually addresses
the thing that money is good for which
is money problems right and so you there
are really two paths before you
if you want to be an entrepreneur like
that is high risk high potential reward
high potential failure if you optimize
your entrepreneurial Journey for failure
mode and you're like even in Failure I'm
having a good time you're going to hate
failing don't get me wrong but like that
I'm pursuing something that really
matters to me I'm getting better every
day I'm serving other people and myself
I'm increasing my skill set even if
you're losing that's going to be amazing
if you're thoughtful about your mindset
100 but if you're making all the money
in the world and you're not able to
laugh and play and have a good time and
feel like you're doing something that
matters it won't matter like I this is
where I want to like grab the camera and
start biting it to get people to
understand like dude
set it and forget it let the make an
income work at something that matters if
you want to be an entrepreneur I love
that I can even help you do that well
but the money isn't going to change how
you feel about yourself 100 it is not
going to make laughter more joyful right
it isn't going to make human connection
better yeah it will get you on the
occasional Beach
but
If people could internalize that I think
that they would make very different
choices they wouldn't be so worried
about making all the money right now in
fact let me ask you another question
what do you spend the most money on
my business a hundred percent what do I
spend the most money on my business so
it's like
it's not like I'm out yeah bawling on
you know the beach I could I know but
that doesn't give you fulfillment you
know I did a show uh I was in New York
last weekend I did a show there and they
were asking about the first time I made
a million dollars and I went through
that I was like you're not gonna like my
answer because the first time I made a
million dollars in a year I think I took
home twenty thousand yeah which is a
shovel off right back into everything
back into the business because
you know I was like I'm fine driving a
500 car like I'm getting from point A to
point B I you know I'm getting by just
fine like this is my this is my fun
passion and on your point of you know
the Fulfillment this is what I call my
quadrific theory where there's four
Quadra fit quadrupt so uh what I say
that my theory is if you want to live a
happy fulfilled life you have to be fit
in four aspects of life and just think
about like a triangle we're on the
bottom of the triangle you have to be
physically fit then mentally fit then
spiritually fit and on the top
financially fit if you want to live a
fully Fit Life
physically fit because if you're on your
deathbed it doesn't matter if you have
10 million dollars in the bank the only
thing you care about is being healthy
again to be able to breathe again you
want to be physically healthy because if
you are morbidly obese you can't move
your you're just the only thing on your
mind is to be healthy again you know we
all know the feeling where you're sick
you don't feel good where you can't do
anything the only thing you want to do
is feel better then is mental Fitness
being around people that you love not be
miserable if you're struggling with
anxiety depression if you're not happy
more money is going to make you more
miserable and
we all I mean I I'm so passionate about
this because I've seen this firsthand I
used to not believe in this but I have
seen this so many times where I try to
bang this into people's heads if you
think that making a million dollars is
gonna suddenly make you happy it's gonna
make people like you it's going to make
people want to be your friends it's
going to make you find the love of your
life you are so wrong and you are so far
from the truth that it's going to be
extremely painful for you to learn it
because you have to work on this mental
health as its own aspect of life learn
how to build self-esteem how to be happy
how to manage anxiety how to manage and
fight depression learn about these
things it's his own part of this you
have to be mentally fit then spiritually
fit now this doesn't have to mean
religion spiritually fit I mean finding
yourself purpose what are you waking up
for every single day like you said
you've had millions of dollars at your
bank account you don't got to go to work
every single day you don't gotta go and
hustle yet you do why because you see a
bigger purpose for yourself you have a
reason for you to get out of bed
because if you don't have a reason to
get out of bed more money is not enough
do anything you need to have a reason to
get up want to thrive whether you have
ten dollars or ten million dollars to
want to hustle and then at the top this
is where Financial Fitness has the most
impact the most power and the most
ability to allow you to live a more
fulfilling life because more money is
just putting fuel in the fire it gives
you the ability to do more of the things
that you love to do more things that
make you feel more fulfilled to do more
things that you want to do to give back
more to do more of that
but having more money is not going to
solve your physical fitness maybe you'll
buy you better food or a better gym but
it's not going to give you the mindset
to go to the gym it's not going to make
you feel okay when you're drinking
something healthy you're going to say
man screw the Smoothie give me something
nasty give me some unhealthy food right
I mean it's mental Fitness more money is
not going to fix that well money is not
going to give you a purpose in life it
is its own aspect of life and this is
where you have to understand that yeah
work on all four of these
each one of these requires its own
attention its own nurturing its own
thing like I focus on the financial side
because I feel like I understood that
but that's not the only aspect of life
and this is what I really try to hammer
into you know on my channel to the
people that watch my videos is yeah look
what he's great understand it conquer it
understand how to master your money but
also understand that it's not the only
aspect of your life you got three other
huge aspects where if you don't have
money yeah it's gonna ruin everything
else because if you don't have money
you're struggling about your bills
you're struggling how you're going to
pay for anything you don't know how
you're going to take your spouse on the
vacation to hear she wants you're not
gonna be able to pay for your kids
education they're not going to be able
to do the things that you want
but if you have money and you don't have
these other three things you're gonna
feel miserable
and then what's the point of having
money if you're not happy yeah just go
back to the middle class home and laugh
yep yeah and it's really interesting
because of course when you're in that so
all of this everything we've been
talking about today you're up against
the nature of the human mind
from uh clickbait titles are necessary
because that's how the human mind works
um Euphoria in the market human mind
fear in the market the human mind uh the
fact that you're not trolling somebody
to say Buy Low sell High because it's
one of the hardest things you're going
to do yeah it's the human mind at work
right like really getting to understand
what the psychological aspect of all
this is so I know somebody and even
myself
when I was in a lower middle class
existence I was obsessed with getting
rich and that was just like all that I
wanted to do now
getting rich the thing that surprised me
is that it didn't dull my ambition it it
can't quench your need for fulfillment
and feeling like you're doing something
that matters and so I just found myself
right back in the game wanting to build
something and create and have a great
time and thankfully I had learned that
you really have to optimize for the
failure scenario because despite being
successful I fail a lot so it's like
really understanding the nature of that
what I call the physics of progress that
failing is just a part of the the thing
um but so I get it I get that people
that are on the come up are not going to
believe the following statement but I
promise that it's true the most fun
you're ever going to have the the
Pinnacle of existence is that moment
where you're working really hard at
something that could pay off
tremendously and you believe it's going
to work yeah there's nothing better than
that moment oh my God I'm working really
hard at this I think it's going to work
and if it works oh my God like the world
is going to be mine yeah that's way more
fun than actually winning and getting
the thing yeah and so enjoying that ride
Journey yeah like that's that's the
juice and so I found myself wanting to
re-get back into that position of like
oh my God I'm building something and if
we pull this up it's like so I know that
it's not about the money it's it's
really about fulfillment that I don't
want to harp on that too much but like
just getting people to understand you're
in a battle against your mind
if you can get to the point where you
realize that being around the people
that I love is going to be huge
emotional amplitude doesn't matter if
we're on the beach or if we're you know
in a high as long as we have our basic
needs met because for sure that matters
but we have that emotional amplitude
isn't going to go any higher by having a
ton of money but that moment of like I'm
building something that matters I think
this really might work and if it works
like uh you know like we've got some big
victory that's the juice and you're
going to constantly want to be in that
now given that all of that is true make
sure that you're taking some percentage
of what you're doing and just put it in
the set and forget it that way you
should get older yeah and it gets harder
to be sort of peak energy all that stuff
that you've got money it's going to be
doing its thing and then and maybe it's
just taking that like you said you can
spend 75 Okay cool so if we know that we
have to save some we know that we're
going to buy assets with some then why
don't we take some of what we're going
to spend and spend it on building
something starting a side hustle
whatever seeing if that works for you I
mean we're going through a period now
where it's like everybody wants to start
their own thing
try it like see if it's your bag I think
people will I heard you quote you have
to be willing to get punched in the
throat I always say kicked in the face
but like it's the same thing maybe both
very very yes yeah uh if you like it and
that's something that you enjoy then
that's a tremendous outlet and that can
be the thing where you're really
gambling on big upside yeah but man if I
could just get people to internalize
this idea of emotional amplitude yeah
like life's Peak Joys are available to
everybody yeah regardless of money like
I think Warren Buffett under plays
wealth a little bit like he said look
I'm eating at the same restaurants that
you're eating at uh I'm staying at the
same hotels you're staying at I'm living
in the same place look there money can
do some pretty interesting things yeah
but it can't change the amount of
emotion that you feel 100 and if I can
tie this back into what we talked about
in the beginning of this video where we
talked about we talked about the real
estate market we're talking about
everything going on with that and I
think
the best way to explain that now because
you're putting some money aside what are
we looking to buy because I've talked
about this recently a lot on my channel
where the American dream because you
mentioned this the traditional American
dream was being able to buy a home paid
off and now you own a home the reason
why this was the American dream for
anywhere in the world was because when
you pay down your home what are you
building in your home equity
is this concept of equity
and we assume or we for lack of better
we don't have the financial education to
know that that equity which we think is
going to make generational wealth
because Equity is where real wealth is
built can only be found in the home that
we live in but that's not true and this
is where so many people get things wrong
because they now stretch themselves too
thin they do risky things take out
adjustable rate mortgages use too much
debt to buy a home because they think
that it's an investment that's going to
make them wealthy because now you can
pay it down build equity and have
something to pass down however there are
many other ways to build equity
to build real wealth that you can then
pass down this goes back into the assets
that we talked about right when you
invest your money into stocks You're
Building equity in these companies when
you go and invest in real estate as an
investment now where you live in
yourself as a rental property You're
Building equity in your real estate
portfolio and this is different than
your home because when you buy a rental
property you're buying it for one
purpose you're buying it for the purpose
of making money you buy a home for the
purpose of making memories so if you're
buying something for the purpose of
making money you're probably going to
make more money because you're going to
do a different type of analysis than in
the home that you live in and you know
one way is you can go and actually buy
it and the second way like you've been
talking about entrepreneurship is you
can build the equity so when you build a
company You're Building equity in the
company like if you go and start a
company you are the 100 owner of the
company well if your company can make a
hundred thousand dollars of profit a
year your Equity might be worth two
hundred thousand half a million a
million dollars depending on you know
whatever type of company it is but
you're building equity in a company so
you can build this Equity you can buy
this equity and the whole idea of a
recession is now this type of equity
these Investments these assets can go on
sale and this is right now you can come
in and buy more Equity at a discounted
price and this is one of those things
I'm gonna go back to keep mentioning
what we talked about before in a
previous interview
we are never taught this because school
teaches us to become an employee what do
you do when you're an employee you get a
salary do you get any Equity with a
salary no maybe your company gives you
separate Equity as a compensation
package or something but your salary is
payment for hours that you work
and that is nice today but once you
spend your salary you have nothing left
real wealth in this country in this
system is built through owning Equity
we're never taught this this is what
gets me really heated up because we're
never taught about this and so if you're
if our whole system is taught around
building and earning a salary how come
we're never taught about building Equity
because now what we should be teaching
is hey
go to school get educated but understand
the wealth is built through Equity so
earn a salary do whatever you want
whether you're a doctor or you're
working at a factory doesn't matter take
some of your salary go out and build
some equity
we're always taught and think and told
that the way you do that is to follow
the American dream just buying a home
because now you can pay down your home
build some equity but that is honestly
one of the worst ways to build equity
you never talk about wealthy people
becoming the richest people or wealthy
people because I paid off my home no you
become wealthy because you own a company
you built a company you invested in
stocks you invested in real estate you
invested in equity somewhere else and
your home is honestly like one of the
last things that wealthy people think
about yet for the majority people when
they come up becoming wealthy and
building this type of generational
wealth what are they thinking about
buying and paying off my home
and there's so much more to that but it
requires that Financial education yeah
I want to go back to something you were
talking about earlier that Covenants
so you were talking about at the time
that there's two kinds of selling
there's selling because you choose to
but oftentimes people are doing it out
of panic and then they're selling
because you're forced to
um in business when you're taking out a
loan they put covenants on it meaning
the following things must be true for
you to have a loan in good standing so
even if you're making your payments If
the ratio of like your accounts
receivable so the amount of money that
you know that you have coming in if it
drops below a certain level if that's
one of the covenants or you have to have
a certain amount of savings in the bank
or your profit margin has to be 13 or
higher whatever they put these covenants
right on that is that's what happening
when somebody is getting over extended
with uh either sort of so if we talk
about real estate first
when you go now there's a couple
different levels of real estate
investing and Loans assuming you're
buying to a debt now
in the beginner level they're going to
look at your income very heavily your
income to debt ratio just like when you
go and buy a home they're going to look
at all the things same things to go and
buy a rental property then as you get a
little bit bigger
they're not even going to really care
about your personal financial situation
what they're going to be looking at is
primarily just like you were saying
the actual investment itself because now
you're buying essentially a business if
you're buying an apartment complex
well now you're buying essentially
business and what they want to see is
okay what's the price of this
how much rent are you generating every
month every year what are your expenses
what is the margin because they know
that this property is going to continue
to generate rental income and the rental
income is going to then pay for the
mortgage the loan on the building and so
that's what they're looking at and of
course they're going to want to see your
personal financial situation because
they want to see okay if things go bad
what can you do do you have any access
to access cash do you have any other
access to Capital do you have any other
wealth do you have any other experience
but the primary thing as you get bigger
and bigger is this going to be the
property itself
in the stock market
oh man well let's stay on property for a
second so are they going to call the
loan like there will be a predefined set
of things I imagine that if they stop
being true they'll call the loan so for
instance as long as you have 20 equity
in the building we're fine but the
second the value of the property drops
like if you put out let's say five
million dollars to buy it if the
property ceases to be worth five million
dollars then we're gonna basically call
it because I know that's what ends up
happening to somebody in the crypto
Market yeah your crypto is worth a
million dollars and you've got a million
dollars uh borrowed the second that
that's worth a million they're gonna uh
do a margin call sure because now it's
like if it goes down anymore then
they're out money so they literally the
second it drops to the amount that you
owe boom it's gone it works similar to
that in the stock market but in the real
estate market no they're not paying
attention to the valuation of the
property day-to-day because that's also
kind of ambiguous
a property is worth really what
someone's willing to pay for it you can
run an appraisal you can do comps but at
the end of the day it's what someone
else is willing to pay for it so instead
of them looking at the valuation of the
property or what they think it's worth
what they're looking at is are you
making the payments
um because if you're making the payments
they're not going to ask you questions
if you stop making payments that's when
they start asking questions and that's
when they start uh trying to figure out
what to do and then they might force you
to sell now forcing you to sell in
crypto is very different than forcing
you to sell in real estate because
forcing you to sell in real estate is
not going to depend state to state what
the foreclosure process looks like how
intense that process is and how long
that process is there's a crypto for my
understanding because it can be pretty
instant you get that Margin Call they
can take your crypto back pretty quickly
real estate we can be a year and then
there's a lot of
different tools that can be done like in
the 2008 real estate crash one thing
that was very popular was a short sale
this is separate from a foreclosure a
short sale is now where there's three
parties working together the seller the
bank and the buyer are working to now
come to an agreement on a price where
the bank agrees hey we're going to lose
money in this deal we're willing to lose
x amount of money on this deal the
seller says yeah I'm going to walk away
from this deal and not make any money
but at least I don't get foreclosed on
and the buyer says fine I'll pay this
money I was involved in multiple short
sales and one of the short sales that I
was involved in
they also had an additional provision
where okay the bank's going to agree to
lose however much money I don't remember
the exact numbers the seller agreed to
walk away and not get a penny from the
home and then they also wanted me to
write a separate check at closing to the
seller's contractor because he had done
some work on the property never got paid
and had put a lien on the property
meaning he essentially made a claim
against the seller backed by the value
of the home that hey I need to get paid
so I then had to also work out a deal
with the contractor where all these
parties where the contractor had to
agree to a certain amount of money this
was a long time ago I don't remember the
exact numbers but so it was two separate
checks that had to go one was to the
contractor to make him happy and whole
and then one was to the bank where the
bank now was okay with losing a certain
amount of money and they're willing to
do this the bank in that situation
because if they had gone gone through
foreclosure
they would have to spend way more money
on legal fees they'd have to spend way
more money on administrative fees and
then they'd probably even sell the home
for less money when it came to the
actual foreclosure process and the
seller would prefer a short closed a
short sale in this situation because if
you don't do a short sale and you go
into foreclosure then your credit score
gets hit you have to go through the
entire foreclosure proceeds so you don't
take a hit if you do a short sale
uh if you do it right you typically
don't have to get the same sort of
credit score hit because you're just
selling the home versus a foreclosure I
mean so there are again the reason why I
said you have to do it right because
there's Provisions there's certain
contracts that you want to make with the
lender saying that they're not going to
come after you for the previous money
and they're not going to file some other
things so there's specific contracts so
it gets very complex where you want to
make sure you have a good attorney
because it could affect your credit
score and it could also not affect your
credit score as much depending on how
good your representation is and how well
you draft these agreements so it becomes
very complex versus you know we talk
about crypto or with the stock market if
the value of your Investments fall to a
certain amount and you don't put in a
certain amount of money
it just cells there's nothing else like
they're either going to say give us ten
thousand dollars right now or we're
gonna sell your Investments for you and
there's really no other if ands or buts
it's like almost automated in that sense
so it's a very different situation how
do people get
into the stock market with debt
it's actually very simple
most brokerages
make their money through margin meaning
debt because if we what backtracked so
you're saying if I go somewhere like
Vanguard I can buy on debt so let's
let's talk more about the mainstream
Robin hoods and uh the the more of the
mainstream brokerages in that sense
where Robin Hood now is mainstream huh
they're they're pretty amazing how long
have they been around for oh I don't
know the exact number of years it's not
that long right they're they're I mean
they're you know one of those startup
brokerages I don't know what year they
started wow well let's start
about a hundred years ago and then we'll
kind of take this little time lapse 100
years ago if we wanted to buy just just
a couple days back
if you wanted to buy stocks a long time
ago you would have to have access to a
actual stock broker you would probably
have a financial advisor it'd be a very
difficult process and a very long
process where we want to buy a stock you
would call somebody who would call
somebody who would then make a
transaction maybe multiple people to
make that transaction so it was a very
long process then in uh the 2000s early
2000s started coming these digital
brokerages this is where Charles Schwab
E-Trade TD Ameritrade they really became
bigger but the way that they would make
money was they would charge you a fee a
commission to make a trade so it was
somewhere between
five dollars seven dollars to Fifteen
dollars even twenty dollars to make one
transaction to buy a stock or sell a
stock
then after the 2010s came things like
Robin Hood and Robin Hood then shook
things up even more where they said
we're a commission free brokerage you
can come trade stocks on our platform
and we're not going to charge you a
single trading fee now if you're not
charging a fee how are you going to make
money well the first way that they made
money
was uh this whole concept of you would
buy a stock on Robin Hood and then Robin
would then make that transaction a
little bit later and they would sell
these trades it was a very complex
process where they would sell it to
another entity so you
you were kind of doing an indirect trade
for you as the trader it made no
difference or negligible difference you
wouldn't even know the difference versus
Robin Hood is then selling these trades
on the back end but then the second way
that they would make money is through
margin meaning that Robin Hood and these
platforms would then lend you money
based off of how much money you have in
the platform and then you can trade not
just with the hundred dollars that you
have in your in your Robinhood account
but now with the extra 20 50 maybe 100
that Robin Hood is giving you that you
can now trade on margin and the amount
of money they're going to give you is
going to depend on a number of different
factors
um but then they literally will just
extend you this line of credit and now
you can trade and I know this from
first-hand experience not with Robin
Hood but with a different brokerage
because when I first got started and we
talked about trading this was when I was
forget if it was my first year in
college
um I spent a summer doing trading and I
was using a platform and uh they told me
that hey I could I can I started trading
and then they said let's upgrade your
account to a Trader's account I said
okay cool and then they said hey uh we
will also give you more money to trade
with margin
I didn't that this shows you how naivea
was with the lack of financial education
that I had I thought it was free money
I didn't know that this money had
strings attached to it I didn't know how
to pay the money back I didn't know that
I was being charged interest so what
happened was I traded money I I don't
know if you've heard there's a guy named
jasperid Singh and he says the most
expensive money is free it's free money
I learned that lesson a very painful way
so I was trading money with uh the
brokerages account where I just thought
that because now I'm making uh making
more trades that they're going to make
more commissions I'm just gonna you know
that's how they made their money
well long story short I had lost money
on some of these trades that were on
margin and they said hey you need to put
more money in the account
I was like what do you mean okay I got
to make up this whatever margin so then
I you know I had fortunately some money
I covered it and then I decided I'm no
longer going to be a Trader I'm done
with this so we loaned you money to make
the trade you lost pay us back I paid
that money back so now how long do they
give you to pay back
I don't remember I paid it I had the
money so I just paid it because I was I
understood that I had lost their money
so that part made sense to me
and then I was done trading I realized
that this is not for me I don't want to
spend this time you can't pay it back
well I don't know exactly what they do
but they're going to come after you I'm
sure they will file a loss because I'm
thinking about this I'm an attorney
right from legal perspective
it depends on how much how much money
you owe
and uh what you're going to be doing
because now they can very easily file a
claim against you they can you know run
a lawsuit against you if you're not
paying there's a lot of different things
they can do and the more dollars that
you owe there's more things that they
can do just like with anything else
but then you know I'm done trading and
then a number of months go by and I
started seeing this like deductions for
my account like what am I being charged
for so I call them up and they're like
it's your margin like what are you
talking about I'm not doing anything
well we gave you money it's in your
account you have to pay interest on the
money that we gave you and that's when I
realized there's a cost of money right
and so that's when I said turn this off
take your money back I don't want this I
paid interest on it and that was the
last time that I did that but this is
you know it does
I was I don't know 18 years old 17 18. I
had no way probably 18. I had no idea
what I was doing and
this is where a lot of people get in
trouble because you think oh I can
double my money pretty quickly but if I
use their money in addition to my money
now I can quadruple my money because I
only got to pay you a little bit of
percentage if you know that you got to
pay them back I so I don't know a lot
about Robin Hood I am super stoked that
the average person can now get into the
equities Market
but that's how people get into trouble
it's the financial education along with
everything else
accessibility is great
but the accessibility without Financial
education can be dangerous now if we
start using these tools because if you
don't know the cost of some of these
tools it can be very bad for example
think of a credit card is a credit card
a bad thing or a good thing it depends
who you ask right uh you know there are
so many people have thousands of dollars
worth of credit card debt that is
skinning them alive
I only transact with the credit card why
because well I get my points I get my
cash back I get my fraud protection I
get free insurance on my car rentals I
get all these things
that I wouldn't get up I paid with cash
even if I debit card I don't get all
these things so now when I'm spending I
spend a lot of money especially in my
business if I spend a hundred thousand
dollars a year a half a million dollars
a year I'm gonna get a big cash back
check that I could put right back into
the business I can spend it I can use it
on a vacation I can get free perks I
mean I get so many different things but
that's only because I know I'm not going
to change my spending because of my
medium I'm not changing my spending
because I have a credit card I'm just
using a credit card to facilitate my
transactions as opposed to using it as a
free
money printer and again what is it it's
that Financial education along with the
tool it's not the tool that's inherently
evil it's when you use a tool without
that Financial education that now you
can get screwed over that you get in
trouble that you start hating the system
oh they're out to get you
they're not giving you the financial
education because it's not in their best
interest to give you that Financial
education
but this is where if you have the
financial education you can use the
system to Advantage but the problem is
we are never taught this right and it's
so it's just like it for me it pulls on
these strings in my brain because it's
like oh my God it just screws so many
people over because it's profitable to
keep people poor if you don't understand
this you're going to spend more money in
a credit card you're going to spend all
your money making everybody else a
terrifying statement that you just rush
past it's profitable to keep people poor
it is profitable to keep people poor is
it profitable to keep them poor or to
keep them ignorant it's a mix of both
when you're ignorant you stay poor it
they go hand in hand because if you
don't have the financial education what
are you going to do you're going to go
run your money Gucci Louis Vuitton
you'll be buying the extra guac because
hey you got that money then how are you
gonna buy it you're going to buy it buy
that extra you're gonna buy the extra
walk lifestyle you're going to buy it
with your credit card
and you're not going to wait until you
can afford it you're going to buy it now
because you can and nowadays it's not
just a credit card just buy now pay
later and everybody talks about how buy
now pay later is zero percent APR
there's there's no cost to this money
you can buy it now pay later but again
like you said what I said the most
expensive kind of money is free money
they got to make money somehow there's a
reason why there's billions of dollars
pouring into the buy now pay later
industry one of the fastest growing
fintech Industries ever because when you
spend on buy now pay later what happens
one you're spending way more money than
you would have if you didn't buy now pay
later because if you wanted to buy a
thousand dollar sofa you have to have a
thousand dollars in your pocket well now
you can buy it down pay it later so now
you can spend a thousand dollars on
something else
second what happens to so many people is
you don't pay it off in time now when
you don't pay it off in time there's no
longer zero percent APR now you get
slapped with a very Hefty very expensive
fine
so now it's okay the tool plus the
education the tool plus the education
going back to inflation
inflation you know is it a good thing or
bad thing I think you asked me that last
time or are you talking about you know
the way the system works again
hence depends on if you understand it or
not if for wealthy people they they love
the inflation hey keep paying more for
my assets keep driving up the value of
my assets keep making me wealthier
versus for the average person you keep
getting screwed over because now your
groceries are more expensive your gas is
more expensive your rent is more
expensive everything is more expensive
everything it you know it's
understanding the tool and the education
the tool I'm going to give one more
example because this is the stuff you
can see it gets me so
keeps me up at night it gets me really
upset because I understand both sides
because I never had that Financial
education and now I see the benefit of
it and I'm like please learn this even
if there's a clickbaity title because I
need you to watch it please learn this
we talk about you know how the
government many times like they might
have good intentions
but the people in government aren't
economists they're not always the best
decisions with their money because
sometimes their goal might just be to
create jobs and creating jobs is
different than being efficient and so
you know if you look at like for example
the college education system where back
in the day
it was not easy to get a student loan
and back then College was also a lot
cheaper and back then a lot of people
were not getting a college degree so if
you had a college degree what happened
you stuck out you were different you had
something
well what happened later you know things
was in the 70s now the United States
government maybe the 70s 80s around that
time the United States government passed
a law that said that if you want a
student loan
we'll guarantee it
anybody can get access to college
education the government will guarantee
a student loan now this sounds like
great news hey everybody can get
educated
how can that be bad but colleges heard
this and it was music to the ears you're
telling me that I can charge any amount
that I want
and the government is going to guarantee
to give that to our students sign me up
now we can hike up our tuition rates and
people keep paying not everybody can go
to college because we think that we need
to go to college in order to become
successful and now where we are today
everybody has a college degree if you go
and apply for a job with a college
degree you don't stick out you're just
like everybody else all right so I have
a sincere belief that there are habits
that keep people poor and that anybody
regardless of where they're born what
their circumstance is if they do the
right things over a long enough time
period they can get out of it we are
living in horrendously uncertain times
yeah what are the things the habits that
keep people poor well well the first one
really has to do with understanding
money because unless you understand what
money is none of the other habits really
matter because at its core what is money
and when you ask people that you might
say it was a hundred dollar bill a 50
bill that's what money is but what is
that money because that money that we
have today is different than what money
was 60 years ago
the money that we call money today is
currency it's really just pieces of
paper and when you understand that it's
going to change what you do with the
money and the reason why I'm saying that
is because uh I'm from my family's from
India state in India called Punjab and
over there it's a very traditional thing
that when you earn this paper dollars
many people will convert this cash into
gold because they understand that these
paper dollars lose value and it's just
paper so they want to convert it to
something real something tangible so
they will go out and buy gold with it
all right really fast explain to people
why paper money loses value over time so
our paper dollars can be manipulated and
controlled by other entities such as the
Federal Reserve Bank yeah and the
government now the interesting thing
about the Federal Reserve Bank is it's
called the Federal Reserve Bank however
it's not federal it says so on their
website they're not a reserve they don't
keep cash reserves anywhere they're not
a bank you and I can't go there to
deposit money
so what happens is should I hear wolves
howling in the background like is there
something sinister going on do you think
for real or is it just the system and
it's just how it works well it depends
if you understand the system you can use
it to your advantage if you don't
understand the system it is going to
screw you over many many many times yeah
this is my obsession so as you and I
were talking about before we started
rolling camera two years ago I
considered myself very good at making
money very bad at investing money right
and then the pandemic hit and I really
started to panic for other people that
look I'm gonna make it out of the
pandemic fine but I don't know that that
will be true for people that don't
understand money right and so getting
educated like for me to try to help
other people I've had to educate myself
about what money is right getting
freaked out by inflation and I've heard
you talk about this so I know you know
this well but that the government when
you say manipulate the money they
literally just make more of it right
magically literally and and this is
where the rich will become richer the
poor will become poorer and the middle
class will get wiped out and the reason
why is because some people rich people
will understand money and they will
continue teaching the kids and everybody
else the majority of people who have no
idea what's happening will continue to
become poorer because they don't even
see it happening and so what happens is
so you have the government and the fed
the government spends money now where
did they get their money well they get
their money from taxpayers people like
you me people watching this video
through tax dollars now can we Hammer
that for a second sure the government
does not make money the government takes
money from people who are making money
right now that's not necessarily bad
because they provide a lot of amazing
things they're not necessarily efficient
with their dollars So yeah so we can
dive into that for a second so you know
you have to understand what someone's
role is if you are a company right you
you have a company your job is to make a
profit because if you don't have a
profit you're not going to be in
business unless you have some other
stream of you know Venture Capital debt
or something but if you don't have a
profit you can't continue operating and
so your job is to be as efficient as
possible as a company the government
can actually be benefited by being
inefficient because what is the
government's job you have to understand
what is the role if their goal is to
create jobs well then you can be as
inefficient as you want and you can
achieve that goal because if my goal if
I'm the government I just want to create
as many jobs as possible I can pay
people to pick up this mug and put it
from the left hand to right hand I just
created a job you're employed you have
an income but you're not producing
anything of value and this is where you
have to understand okay what is that
purpose and so now you know if we get
away from the politics for a second the
government now spends money they get
money from taxpayers because the
government is not a for-profit entity
they don't create a product and sell it
for or create something and sell it for
a profit instead people make money and
then the government taxes your income
now
just like anybody else
there's checks and balances if the
government has a million dollars they
can only spend a million dollars you
would think but that's not how it works
so the government has a million dollars
and what's happening now is they're
going to spend significantly more than a
million dollars now if you have a
certain amount of income and you spend
more than that what do you do well
you're going to have to subsidize or
find that extra cash somewhere and in
the government's case what they can do
is they can go out and look for a loan
it's called a treasury bond for as long
as anyone can remember have been
considered the safest investment anybody
can make well what it is is you're
literally loaning money to the
government
but what happens now if there's not
enough people out there to loan money to
the government if the government wants
trillions and trillions of dollars if
there's not enough people out there to
loan that money to the government and
they keep wanting to spend more money
you still got to make up this cost so
what do they do they call up their
friends at the Federal Reserve Bank and
they say hey we need a two trillion
dollar loan and then the FED is going to
say okay we got you now remember what I
said they're not a reserve they don't
have a cash pile anywhere so what do
they do they go to the money printer and
now they can print out two trillion
dollars they loan this cash to the
government and now the government got
their two trillion dollars the federals
are printed it out of nothing the
government can now take this two
trillion dollars and spend it in
whatever way that they want it can be
inefficient they can try to create
efficient products but their goal is to
hopefully help people
now whether they're inefficient or not
is a political debate however you know
that that is what they do now really
fast before we move on so this is the
part that people need to understand
about why the rich get richer because
I'm super as a rich guy I'm like oh I'm
gonna get richer like what great so what
happened I never understood how so now
what happens you just printed this money
right and then which you don't actually
print by the way you just increase the
database somewhere it's a bunch of
digits yep and now this money enters our
economic circulation but what happens
now when more dollars enter without
actual wealth being created because we
saw this happen in textbook form of 2020
2021 where nothing was being produced
except money
well when more money gets produced it
effectively reduces the value of each
individual dollar this is what inflation
is the word inflation comes from the
word inflate what are you inflating the
monetary Supply so you're increasing the
monetary Supply causing the value of
each individual dollar to go down which
effectively causes the price of things
to go up and so in 2020 2021 no one's
producing however the government is
spending money like crazy where are they
getting this money the Fed so the fed's
printing money giving it to the
government the government's spending it
like crazy now people are getting money
it's people it's businesses it's
corporations
and this money is being spent and now
everybody is like wow I'm sitting at
home and I'm rich you have some people
who are getting big unemployment checks
you have some businesses getting
millions of dollars and everything is
running smooth but and people are
spending money like crazy buying things
but nothing is being produced so then
what happens well now you have a supply
chain mess because everyone's buying all
the stuff in stores however no business
is able to produce anything because the
economy shut down so the supply chain
issue then you start to see is a
byproduct of the inflation because
everyone's trying to blame oh the
inflation is happening because of supply
chain issues but you have to look at
what is the real root cause the
inflation is what causes the supply
chain issues and now we're trying to go
backwards but this is where rich get
rich and the poor get poorer because as
the value of the dollars drop what
happens for regular people your salary
doesn't stretch as far your savings
don't buy you as much and so you're
effectively becoming poorer each and
every day because for most of us we're
taught to save our money that's what I
was told to do growing up uh you know
the traditional Indian houses save save
and so I was told to save my money and
your savings are becoming less valuable
each and every day well what wealthy
people do is they're not storing cash
they're buying assets and so when when
we have this sort of economic system can
you explain what an asset is and as this
we're now getting to the root of how the
rich actually get rich right this was
the part it took me a very long time to
understand but now that I get it one it
doesn't need to be the rich that are
getting richer anybody can own assets
yeah but they have to understand what
assets are and then actually buy set
assets right because this is how the
government pumps the money into the
system and this was a part like
I'm grateful sometimes that I'm kinda
dumb for real but and and this really I
had a breakthrough moment back at Quest
we were dealing with nutritional science
and I didn't always understand it and so
I would have to keep asking keep asking
keep asking keep asking but what I found
was if I just totally got rid of my
embarrassment over not knowing yeah and
I kept asking until I understood it so
well that I could explain it to other
people sure that ended up propelling me
forward because I was no longer just
nodding and smiling and going along I
was like no no I don't get that I don't
understand I don't understand yeah and
so by pushing into that then I actually
began to understand the biology I began
to understand what ingredients made
sense and all that right so but I had to
be willing to look stupid yeah and so
now because I've been willing to look
stupid for so long in the world of
Finance right I finally asked the magic
question which is when people because I
actually thought they were printing
money I thought that hundred dollar
bills were coming off of a printing
machine that's not how it's done at
least not to the vast majority of it
it's zeros and ones in a database and
when they create that money I was like
whose database entry is it like are they
actually going into rich people's like
accounts and giving them money no what
they do is they buy oftentimes
government assets I don't want to
introduce the word bonds and stuff sure
but like they're buying assets from the
government right but the question is
where did those assets get purchased in
the first place and they got purchased
by people right who are effectively
trying to park their money as they call
it yeah so I for years was parking my
money in government bonds because the
government guarantees it yeah and so the
way that the government raises money
without having to raise your tax is they
put bonds out into the world that then
people buy so when they're pumping money
into the system they just go buy those
bonds so now they're buying them from
rich people because rich people were the
ones that were educated enough and had
the capital to buy said bonds impact
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if you want to make any goal stick do
not miss it that's correct and it goes
actually a little bit deeper because in
the pandemic we saw something that we've
never seen happen before so the Fed
has the ability to work with interest
rates I'll talk about that in just a
second and then they can print money and
give it to the government and then when
you have an emergency time we saw this
happen in 2008 we saw it happen in 2020
they can do weird things so
what they did in 2020 this is the first
time it's ever happened in history is
they directly gave money to corporations
in the form of purchasing corporate bond
ETFs so think of it this way the biggest
corporations in America
can go out and raise money from a bank
they can go out and raise investment
dollars or they can put out this loan
say if you are a regular person you want
to loan money to US you can do that and
so there's ETFs which is a group of
corporations that are looking to raise
money uh and it's a way to kind of track
those debt Investments well in 2020
because a lot of Corporations had no
cash and now all of a sudden they're
like oh we can't sell products we're
going to go under
the FED did something that has never
been done and they started buying
corporate bond ETFs in the first time in
history and this is where things got
really dicey because now how do you
decide who gets that money or not I mean
they're printing money somebody's got to
pay for that who pay who's paying for it
regular people average people because
now it's a hidden tax because
the government can't just spend money
without somebody paying for it they have
to generate the tax dollars if they
don't pay it through tax dollars
somebody's still going to have to pay a
tax and inflation now is a hidden tax
it's a silent tax it affects the people
who don't understand money and it
disproportionately affects the poor and
the financially uneducated and this is
why Financial education is so important
is because if you don't understand this
you are going to get screwed over by the
system because now guess what your guess
is going to be more expensive your
groceries are going to be more expensive
your home cost is going to be more
expensive the cost to do anything is
going to cost you so much more today
next year the year after that while your
salary hey you got a raise but you're
actually broker now than you were before
the race because your raise isn't
keeping up with inflation and so what's
happening now
this money gets printed and it enters
our economic circulation and now you can
own the assets or what happens let's say
you own stocks you own real estate well
the FED can also manipulate interest
rates so when interest rates go down it
makes borrowing money cheaper well when
you make borrowing money cheaper more
people and institutions are going to go
out and borrow money this also creates
more inflation because now when you go
to the bank and you borrow a million
dollars or a hundred thousand dollars
the bank is going to work with the FED
to print this money and that's how it
gets injected at the economy so lower
interest rates create more inflation and
if you are somebody who's financially
educated you own assets and we didn't
explicitly answer what is an asset it is
something
that gives you equity and at the
broadest form an asset is something that
puts money in your pocket liability is
something that takes money away from
pocket what's an example of an asset
this could be owning a business
investing in stocks investing in real
estate anything that you buy for the
purpose of making money right and so
when interest rates go down because now
the FED working with the government want
to create more inflation more dollars
are going to enter economic circulation
more people are going to want to buy a
home well if you have more demand to buy
a home where the home prices go up who
owns homes well yeah if you're a
homeowner but if you are a real estate
investor now the value of your assets
have just because now you own multiple
real estate Investments your rents have
gone up your stock Investments have gone
up because now businesses can borrow
money for effectively nothing you borrow
money for three four five percent
and now you can borrow hundreds of
millions of dollars to grow the company
and if you can grow your company by six
percent well if you just made a profit
off of the free debt and so now
corporations become wealthier because of
asset prices go up and what does this do
the reason why it makes rich people
richer and poor people poorer is because
not only is your cost of living higher
but now if you want to go and invest
your money well asset prices are more
difficult to attain it's harder to buy
the same level of stocks it's harder by
the same level of real estate because
now the people who own these have
already seen that appreciation and now
if you're wealthy and you understand
this and you're buying these assets and
you've been buying them now you're
seeing the real gains and you start to
see this divide between the rich and the
poor and this is where inflation
disproportionately hurts the financially
uneducated and the poor and
disproportionately benefits the wealthy
and that's why the middle class gets
wiped out and the crazy thing is none of
us are taught this I didn't grow up
learning about money I didn't grow up
learning about financial education I
didn't grow up learning about investing
I didn't grow up learning about any sort
of wealth my parents are immigrants from
a state in India called Punjab like I
was saying before and in my household
success meant go to school get good
grades get a good job and and for me uh
that good job was I had to become a
doctor I was actually given two options
become a doctor become a failure I could
choose they let you choose let me choose
right and uh so I saw how hard they
worked uh for my dad if he had a
Saturday and a Sunday off
that was considered a long weekend and
so you know I wanted to give back to my
parents I knew I wanted to become
successful they wanted me to become
successful and uh so I kind of followed
that path like doing what everybody says
following the system trusting the system
right
and
it just didn't make sense to me because
on one hand in my house money was a
taboo topic you don't talk about money
you don't worry about money you don't
it's it's a bad thing
but at the same time I see how hard my
parents are working to get paid you know
to to pay for our Our Lives now we were
fortunate I never had to worry about my
next meal and we were never poor or
anything like that but I saw how hard
they worked and
it wasn't until I got to college until I
realized something isn't adding up
because I was actually studying to
become a doctor I was taking the Medical
College admission test the MCAT
and as I'm studying for this test
I started doing a couple things first I
started reading business books because I
was just interested by this that was the
first English is my second language so I
never grew up reading books in uh you
know my grade school years even English
class I almost failed my English class
and I think it was middle school because
I just didn't understand how to write
papers or do all that but as soon as I
started reading business books I started
reading them for fun because I was
interested by it and then I started
going on to Google and I started
researching just random things from
things like the richest people in
America
and you know you see like Warren Buffett
Steve Jobs Mark Zuckerberg I don't even
know he was on it back then but he had a
bunch of people who none of them were
doctors none of them went down that
traditional path and I was like wait I
thought that grades correlated linearly
with income like if I got better grades
my income would directly correlate with
that so that was like my first like wait
is something wrong here was was
something like it just wasn't adding up
stock markets volatile crypto's volatile
housing markets can even be volatile I'm
not going to panic in a down moment I'm
going to set myself up or I'm not
investing more than I can afford to lose
I'm not doing this on debt
you have to keep your income going so
whatever it is whether it's a job or
whatever you have to be very thoughtful
about that but setting yourself up well
knowing that there's going to be a
downturn that it's about time in the
market instead of time in the market
right
and then you can just ride this out
exactly and I think for the majority
people the vast fast vast majority of
people that is the best advice that you
can give them
don't invest with debt don't invest more
that you can lose and I'm gonna take it
one step further because I think for 90
of people out there regular retail
Traders investors you don't need to be
buying individual companies
put your money into a low-cost ETF into
a low-cost index fund and that's it
facts what are those though and so
Jasper most people don't know what that
means so let's let's break that down so
ETF is an exchange traded fund and it is
literally a group of companies a basket
of stocks so instead of you going out
and investing in let's just say
McDonald's the corporation and now all
your eggs are in McDonald's meaning all
of your money is in the investment in
McDonald's so if McDonald's goes up you
can make a lot of money if we dumps goes
down now you're gonna be panicking
because you're in whole portfolio is
down
well the issue is you have the most
upside but also the most risk because if
the executives at McDonald's run their
company into the ground and they go
bankrupt their whole investment's gone
now if you invest into something like an
ETF or an index fund which are very
similar to each other now you have a
group of companies where now it might be
McDonald's and 499 other companies so
now what happens you lower your risk
your lower some of your upside but you
also lower some of your downside because
now if you run through that same
scenario where the McDonald's Executives
run the corporation into the ground and
they go bankrupt well yeah 499 other
companies in the portfolio so you're
okay
and so then what can happen in a
low-cost ETF or an index fund is they
have computers and this is automated
where they will kick out McDonald's
because now they're no longer fits
within this 500 companies and then
they'll put in another company to take
the place in McDonald's so now it's
passive on your end because if you're
not willing to put in the work to do
that active investing to do that sort of
fundamental analysis meaning listen to
the earnings calls study the revenue
study the profits study what the
corporation is doing if you don't care
about doing that if you don't want to do
that and if you're not willing to do
that don't invest in individual
companies because now you're taking on
all the risk hoping for some upside
versus you can mitigate a lot of that
risk by just investing in
ETFs or index funds and you can do this
right off of really any stock brokerage
app out there and now you can buy them
now how do you buy them well two
strategies passively or actively
passively which is a great strategy is
now ideally every week or anytime you
get paid you put a little bit of money
automatically into this ETF system do
you use for that so I use a platform
called M1 Finance there's M1 Finance M1
Finance there's tons of brokerages out
there you can find whatever one you want
where now it is completely passive money
is automatically pulled out of my
checking account on Wednesdays you pick
the date doesn't matter and it's
automatically invested dollar cost
average dollar cost averaging into my
portfolio of ETFs so I have a number of
different ETFs in there happens every
week whether the Market's up whether the
Market's down and I don't touch it
it just does its thing
the active side would be now
you're looking for a good price point
and this is where it gets a little bit
more advanced where if you're willing to
do the research you know you could you
can pick ETFs or index funds where if
you see a big crash you see prices go
down you can put more money in or now
you can start looking for good companies
that you believe are undervalued but
again this now gets a little bit more
advanced where you have to ask you a
really blunt and interesting question
yeah the average person they're not
financially literate would you rather if
they had a thousand dollars would you
rather they play blackjack or try to
actively trade that money play blackjack
or actively trade that money don't trade
I think trading unless you want to do it
to learn I trade it I'll give you my
personal experience I know you would
trade because you know what you're doing
well I wouldn't trade I wouldn't even
you wouldn't trade would you treat your
only options Blackjack active trading so
explain it because I'm not a casino
person so Blackjack is the one where you
go to 21. oh you're going to lose either
way or you're going to lose either way
the reason I bring this up is I really
think that the average person would be
better off taking their thousand dollars
to Vegas and playing Blackjack because
it will be fun if you try to actively
trade you're going to lose your money
now is that a hundred percent of the
time no of course not but Ray dalio for
people that don't know runs the largest
hedge fund in the world when he explains
this I'm like oh my God I'm never going
to try to active trade he said you're
going up against people like me I spend
whatever 200 million dollars a year on
Research yeah and I have ai which is
making trades in milliseconds right we
know how fast the fiber optic cable is
to make sure that our trades go through
slightly faster than the other person
which can be the difference between you
know a percentage point which could be
millions of dollars he was like you're
going to lose and he was like it's hard
for us and we've got whatever 1500
employees like I said AI that they've
been building for the last 25 years
fiber optic cable measuring things in
milliseconds he's like the odds of you
finding something think that we haven't
already traded on is basically zero yeah
every person that I know this is a very
small sample size I'm well aware of that
every person that I know has lost money
on a long enough timeline actively
trading yeah the only people that make
money are people that are that and I
will use my language this is how I think
about myself I am too stupid to beat the
market I'm too stupid to be Ray dalio
that's for sure and Ray Dalia's entire
team and Ai and all that so actively
trading is off the table just because I
know it would be like me trying to play
uh professional soccer right I'm going
to get my ass handed to me my by messy
the the difference between me as a
footballer yeah and Messi is the same as
me as an active Trader and Ray Dalia
right the Gap is so catastrophically
large that at least playing Blackjack I
would have a good time I think the
difference is now differentiating active
trading versus active investing because
Trading think I tried trading one summer
in college and I spent
every day staring at charts candles
which are these little ways that you can
make a stock chart and
you get glued to the screen you glued to
the emotion and it is very difficult
yeah watching candles is emotionally
yeah addicting and so I stopped it
because I realized I was never going to
make any real money doing this active
investing what I mean by that now is
you're looking at companies and when you
see this company fall because the whole
world is getting scared the whole Market
is tanking well this is an opportunity
for you to come in buy a great company
at a discounted price and then you just
hold on to it now would you do that at
the company level or at the ETF index
now again who is the person for me I
would do it at the company level because
average person do it at the ETF level
because again you have to be willing to
put in the work to research companies
keep up with the earning statements if
you want to buy and hold for the long
term I am doing active trading right now
not right now but actually right that's
the best thing active investing I am not
actively investing my money into the
market I'm passively investing the
reason why for one active investing
means I'm putting my money into the
market when I see a great buying Point
second thing is
it's now I'm going to just my personal
life what is the best use for my money
right investment money in five places my
own business I put my money into real
estate into stocks into crypto into
physical gold in this order right now I
see the most opportunity in my own
business Market briefs and so instead of
actively putting my money into the
market now my favorite thing you read
every morning it's a great newsletter
right so it's where we break down what's
happening the financial markets into a
fun really easy to read email but for me
I see the opportunity there it is the
biggest purpose for me bet on yourself
and the most excitement for me so
instead of me putting my money into the
market instead of me putting more money
into real estate which I love doing I've
been stopping these active Investments
and putting my money back into Market
briefs that we can build a company build
the infrastructure build it into
something bigger and so that's obviously
I knew the punch line which is why I
asked the question but I want people to
understand that you make a living
researching this stuff knowing about it
and even you aren't doing the active
investing you're doing passive for sure
very wise set that up but for the
average person the average person the
odds that they will do better by trying
to go in and saying oh I know where this
is going well enough to know that now is
a good time to buy McDonald's whatever
they're they're gonna have heard
headlines about Tesla and things like
that and and I'm not saying that there
aren't moments that present themselves
but like if you watch Wall Street bets
do you watch Wall Street
it's scary you get these kids committing
suicide because they don't understand
like
um
they'll do something where I forget if
it's calls or puts or whatever I I am so
not good at this I want people to be I
know my limits but whatever it is where
there's an unlimited downside yeah and
so they end up owing like 75 000 all of
a sudden and they're like uh what do I
do and so now they're just absolutely
devastated yeah so anyway so let's put
trading out the window people of course
don't be trading don't trade your money
and now when you're investing in money
don't invest with debt don't invest more
than anybody I want to go back to
recession yeah I think this is a huge
moment of opportunity even though I'm
warning people as vociferously as I can
about trying to beat Ray dalio I do
think that understanding that if you're
playing your cards right and you're not
overextended and you've done what you're
talking about you've got your five
buckets of investment we're going to get
into remember to hang till the end
because I'm going to give you the eight
things that just free teaches a lot uh
but
if they're doing it well this is Black
Friday for assets
and if people think of it that way like
don't get yourself in trouble don't be
overextended don't have debt but if you
think of this as Black Friday there's
huge opportunities and this really is a
moment where I want people to pay
attention and take advantage of this
moment I am so hungry for the average
person to get educated on this stuff
yeah because I am I have lived the
American dream
and I mean not the like it's your house
and all that but but that you can change
classes I grew up lower middle class and
now I'm wealthy and so I'm like no no
this is a set of ideas if you get your
head around the right ideas like you can
really win yeah but you have to simplify
simplify simplify and because of the
internet because of meme culture people
get so caught up in the emotion right
it's the one thing you can't do right
and you have to be like Stone Cold
logical you have to get that emotion out
and it's hard because everybody look on
the internet YouTube included
there's a lot of emotion now I'm gonna
I'm gonna be completely blunt completely
honest here because I'm gonna talk about
how the YouTube algorithm works because
I think we've talked about this before I
see this on my own platform where
sometimes
YouTube is going to promote certain
video titles over the other so let's
talk about the market going down if I
say you one YouTube pedal is the market
goes down three percent here's what you
need to know
be prepared for market crash what's
going to get more clicks be prepared for
more be prepared for market crash now I
hate that because I hate these titles
now you're going to say just
but you and every major YouTuber has
titles that sound like this oh someone
got to this video through a clickbait
title someone got through this right and
and that's and so now let's let's
dissect this because I have a team
and for a very long time they kept
saying just make these types of titles
and I refused what happened views went
down like this now I had a heart to
heart with a couple people on my team
where they were like just relisted your
videos are I'm saying what they said I
don't want to sound like a super
narcissist but they're like your videos
have real Financial education that
people need to hear and it's better than
what a lot of people are putting out and
I was like okay like if this title is
what it takes to get people to learn
what you're saying within the video why
not make it and so it was one of those
things where I was like oh my God I hate
this but it's the only way to provide
that Financial education to get people
to click it because if I need you to
click that video and now I can provide
you real Education Without saying oh my
God I need to panic and sell no
understand the opportunities be calm
look for the options
that's my goal so it's one of those
things where I see it because I'm in it
and you know I'm gonna talk about Market
briefs for another second because that's
another driving reason for me wanting to
create Market briefs because the
internet is full of sensationalism
especially in the titles because they
need to get you to click
that's how just the internet works it's
the reality okay I mean it is what it is
I have fought it for a long time I hate
it but it's the reality now the reason
why I like Market brief and the reason
why I'm so passionate about it is
because we can completely separate
ourselves from that because now we are
one email
we are you know you no one is coming
into your inbox every day it doesn't
matter what the title is because it's in
the email once you open the email
everything is right there and so now we
can give you the actual news without any
of that you know that happiness and so
that's the way you know you and I
operate but there's a lot of people now
that take it one step further that even
the news then the actual content of the
news becomes just super crazy
sensationalist it doesn't make any sense
that sometimes an outright lie which
then takes it one step further where now
you have to be able to dissect the crap
that's like the good because the reality
is if it doesn't have a quote unquote
clickbaity title you're never going to
see it it's never even going to cross
your
phone your screen it will be hidden into
the depths of the internet
so now if you see it and has a click
video title the question is what's
inside that content and that's where you
have to be able to dissect and dig a
little bit deeper
understand if this is good and if this
is not and the general rule of thumb is
that
generally when times are good they're
typically not as good as the media makes
a scene and when times are bad it's
typically not as bad as the media makes
it seem it's usually somewhere in the
middle and this is where now you have to
really be able to understand and do the
financial education for yourself now as
an investor but the best thing is you
know just
to your money looking for those
opportunities but then also be able to
understand what's happening which is
taking some of your
emotions out of the equation and so this
is now kind of you know building that
Financial education where it's difficult
to do but it's so important especially
in this day this age where the internet
is our means of Education where
accessibility is so much more where
anybody can invest and put their money
into the markets anybody has access to
these tools like
one thing that I want to mention is when
we talk about Building Wealth
whether in a recession not a recession
the majority of people I think assume
that it's a lack of tool set that's
stopping them from getting to where they
want to go when in reality for the
majority of people it's a lack of
mindset most of us have access to the
tool set it's just our mindset that's
lacking you don't need a ton of money
what's the mindset problem the mindset
is one believing I don't have enough
money I don't have access enough tools I
don't have access to enough things to go
and do it that if I want to go and build
a business I need this this and this I
need ten thousand dollars I need a
hundred thousand dollars to go out and
do that I need to have this type of
degree I need to have this type of
parent I need to have access to these
types of people in order to go and build
a successful business if I want to go
and invest my money I need ten thousand
dollars before I can invest for it to be
worthwhile why would I want to start
investing with ten dollars what is that
going to do when in reality these small
Investments do build up if you are 21
years old today and you start by
investing just a hundred dollars a month
which is just over three dollars a day
and you do this consistently until you
retire until you're 65 years old 66
years old and you can get an average 10
return on your money that doesn't mean
it's a 10 return every single year it's
an average 10 return over the course of
investment which is the average stock
market return you will retire a
Millionaire on the 100 investment
assuming you never increase the amount
of money you're investing and we're
talking about less than four dollars a
day
that that's a hundred dollars a month
not a one-time hundred dollars hundred
dollars a month yeah yeah less than four
dollars a day you put a hundred dollars
a month for the rest really years and so
even if you get a raise and you never
put another Penny into your Investments
you will be able to retire a Millionaire
on the four dollars a day that you're
putting aside yeah see that's why I want
people to get stoked on that like look
there is an entrepreneurial side and we
can talk about that later that's
exciting and high risk and pour yourself
into it you're you will get kicked in
the face over and over and over
but if you care about the thing that
you're doing and you have a strong
enough why even losing can be incredibly
fulfilling
but that's a separate bucket when it
comes to investing and thinking about
retirement it is a totally different
ball game right that comes it really
does boil down to buy low and sell High
now how do you get to that point you can
do what you just talked about which is
you put a little bit of money in doing
dollar cost averaging and you may be
dollar cows to averaging simply because
you don't have the capital saved up to
do it any other way right uh by the way
capital is just a fancy word for money
so you don't have the money saved up to
do it any other way so you're just every
paycheck it's pulling out you say you do
it on Wednesdays whatever just at some
increment it's pulling some amount of
money which can be very small to your
point 100 a month
um but doing it consistently and not
selling in moments where everybody else
is freaking out and then like as
advanced as you need to get is
if we're in a downturn and you're doing
your ETF or your index and you know that
we're in the middle of a difficult time
maybe instead of a hundred dollars that
month it's 150 or 200 right it's you're
not going crazy you're still just dollar
cost averaging but now you know that
when it's Black Friday for assets that
you're going to spend a little bit more
just because you know it's going to go
farther exactly but it isn't sexy man
and this is why like having now
witnessed Euphoria I'm like people act a
fool and I had the impulse to act a fool
I was like no no go more you're so smart
like you get this this is and I was like
I know better than that yeah I am a fool
the only thing I can hope for is that by
staying rational and calm and not
overextending that I can stay in this
long enough to sort of wash out my
ignorance just just through time exactly
the walls I think there's Wall Street
Journal that used to do this thing back
in the day where they used to bet
against a monkey where a monkey would
throw darts at a stock I love this
already and they would uh compare what
the Monkey Picked against Traders it's
really happened this really happened
look it up on Google and so the monkey
obviously had no uh Financial education
it just literally threw dots at these
companies that would hold on to it but I
think it was a 10-year span or it was a
long-term thing compared against these
massive Traders guess who won not the
Traders the monkey oh my God and it just
shows we turn that into a t-shirt that
feels like a t-shirt this is so
hilarious as reality is really important
for people to understand a monkey
outperformed professional Trader
professional Trader I'm gonna have to
look this up it's way too important this
is the reality where it's it's just the
value of owning an investment for the
long term and it like you said that
short richness is loud it's flashy
everyone talks about oh my God I double
my money in this meme stock oh my God I
made so much money here it's loud and
splashy but that's also fleeting
lose money where it's like yeah you
gained all that money but then you lost
it exactly but that other the real
wealth real true sustainable wealth is
built in silence it's quite because it
just keeps happening in slow increments
over time and now you start to build
this you know there's the snowball
analogy where from Michigan right we
have snow there you start by building a
small snowball like this you put it on
the ground and you start rolling it in
the beginning you got to roll it a lot
because you have this much surface area
to pick up as much snow as you can as it
gets bigger it grows faster because now
you have all the surface area that can
pick up more snow so you roll it and it
picks up more snow and gets faster and
bigger and faster and bigger and faster
and bigger and before you know it now
you can have a massive pile of snow but
the initial one is the hardest because
you're starting with a hundred dollars
you're like what's a hundred dollars
gonna do but you can stay consistent
with 100 and if you make more money you
keep putting more money in and you just
stay consistent letting the hundred
dollars grow then you put in another
hundred dollars now the first hundred
dollars is growing and then you add
another hundred dollars and then you add
in another hundred dollars now the first
hundred dollar has grown hopefully the
second island dollar has grown hopefully
now you add another hundred dollars to
grow and you just keep doing that month
after month after month after month
now you're really starting to build a
snowball that's growing and growing and
if you look at this not month after
month but year over year that's when you
really start to see the returns but the
problem is who wants to wait that long
nobody wants to wait 10 years 20 years
30 years because we're thinking about
when can I buy my Lamborghini tomorrow
how can I buy my Lamborghini next year
how can I have the nice stuff now and
this then becomes a different question
we're turning to these investment
long-term investment vehicles to make us
rich next month as opposed to actually
doing what it's supposed to do which is
make us rich over the long term we're
trying to do it the wrong way so now we
gotta the question if these types of
Investments are there to make us rich
for the long term how can we make more
money today and so this is where people
turn to things like trading oh I can
flip these stocks I can flip these
houses I can do whatever to try to make
a lot of money right now and for some it
might work in the short term
but it is very difficult in the long
term and this goes back to what you're
saying regarding something like
entrepreneurship this is more of an
income issue because now we're trying to
create an income through trading now if
you are a full-time Trader you have the
systems you have the tools this is all
you do maybe it works for you but for
the vast majority of regular people it
is not going to work and this is where
now something like you know just like
entrepreneurship it's not going to work
for the majority people majority people
are not meant to be entrepreneurs but
you have to start asking the question of
how can you increase your income if you
want to have that better lifestyle
but now I want to caution that a little
bit more too because you know we talked
about our previous interview about
Building Systems how to become
financially smart this is where now
one of the simplest not easiest but
simplest ways to become wealthier faster
is when you increase your income to not
increase your expenses and so the best
way for me to give an example of this is
if you ask the majority of people
what's caused your financial issues the
majority of people are going to say is
an income problem if I just made an
extra ten thousand dollars I'd be able
to put money aside from my investments
I'll be able to do this I'll be able to
do that I'll be able to do so many other
things but what data has showed us is
for the vast majority of these people is
when you make that extra money what
happens your expenses go up right with
your income now you got to buy a new car
that matches your new income you got to
go on a vacation you got to celebrate
you got to go out you gotta you gotta
live this lifestyle that matches your
income so instead of doing that
create a system
that
flows no matter how much money you're
making and one of the simplest things
that you can do is follow something like
a 75 15 10 plan which means that for
every dollar that you earn from now on
75 cents is the maximum you can spend
15 cents is the minimum that you're
investing putting aside for Investments
10 cents is the minimum that you're
putting aside for your savings so now
whether you're making 40 Grand a year or
four million dollars a year it doesn't
matter you're still following the same
system where it's just a percentage
based off how much money you're earning
and the only thing that you're going to
change is your savings because you don't
want to save your money forever you want
to save your money for three reasons
save your money for an emergency save
your money for a big purchase like you
want to buy a home or a car or saving
money for an investment if you're not
saving your money for these three
reasons don't be saving your money now
when we talk about saving your money for
them that's an old statement
yeah as a bold statement there's no
other reason to save your money because
now you're just saving your money you're
gonna have to get into inflation
otherwise people are going to derail but
I also let's start there so why why not
save that's all I was taught as a kid
safe safe me too so I grew up in a
traditional Indian house where the whole
idea of plan and becoming wealth this is
for me was become a doctor why because
doctors have a big status and doctors
have a big salary now when you make this
big salary what is the plan to become
wealthy not by investing not by doing
some fancy stuff it's by saving your
money have a big bank account so live
small live off of ideally 20 to 30 of
your income save the other seventy
percent and that might sound extreme but
this is the reality of what a healthy
Financial household looks like for a
Indian doctor was it for emergencies
like what what is the purpose of saving
in that particular mind so it's not for
emergencies it's literally just to build
up a big savings account because that's
on your kids to pass on to build wealth
so
I should be wealthy and live in a
shoebox like what is the is there like
are are they ever articulating why
you're doing it like for my if my mom if
I pressed her what would she have said
you never know when you're gonna need it
uh that's the only way to get rich she
would have said something like that but
if I had been pushed farther and said
okay
what what's the point of being rich well
then you can do this that and the other
well not if I'm saving forever I can't
so if we I think it has to do with the
times that somebody grew up in so this
save heavy culture is a big byproduct of
my parents culture people who grew up uh
were born in the 60s uh especially in
India so now if you look at that time
frame where you look at before 1970 in
India it was a very tough time where
poverty was very common
most people were poor see that I get
that's a protection again and I don't
ever want to be hungry I don't want kids
to be hungry but that mindset hasn't
gone away and so it just kind of
trickles down right you you see what you
know because I personally many of my
friends are doctors many of my friends
make a lot of money many of these people
also have zero Investments and have huge
bank accounts because then you're beaten
away from this idea of doing something
risky like investing your money
investing in money is dangerous it's bad
like when I I mean I when I wanted to
invest in real estate
nobody in my family had ever heard of
this concept of realistic investing
either had I nobody I knew was an
investor so I told my dad dad I want to
invest in real estate I found this condo
for eight thousand dollars I want to
rent it out blah blah blah blah my dad's
response was you are stupid go become a
doctor go do something worthwhile
and you know he said it out of love I
love my dad but did he really say
worthwhile yeah yeah now
the reason why my dad said was that
extreme about it is you know Indian
parents have this thing where they like
to create stories to scare someone away
from doing something and so you know his
whole thing was oh uh what happens if
your tenant doesn't pay you what happens
if you go to your tenant store and then
they shoot you because they don't want
to pay you that escalated quickly I mean
this this was the example that he gave
me and so it's just it it's just you
start creating all these fears where
it's like if you invest in real estate
you might die and that's supposed to
scare you from not doing it it's one of
those things where it's this lack of
financial education lack of ever
experiencing it because you don't know
that it's possible you don't know
anybody doing it you don't know anybody
that looks like you doing it you're
still new in this country
how are you supposed to go and do it
it's just very scary where this is the
safe thing is just saving money
if you save 100 Grand today and look at
your bank account a year from now it's
still going to be 100 Grand maybe a
couple extra pennies if your bank has
given you some interest but you know
that's it if you invest why isn't that
the best idea ever
well going back to what you said
inflation inflation
by definition is deluding the buying
power of your dollar so what I thought
this was a fundamental law of nature
that's really human intervention yeah it
really is inflation comes from the word
inflate what are you inflating when you
have inflation and it's funny
if you've been watching some of your
content or my content you know that it's
you're inflating the monetary Supply
when you increase the amount of dollars
out there without increasing the amount
of wealth the value of each individual
dollar goes down broke brains how do you
increase money without increasing wealth
so if I just print money the Federal
Reserve Bank who which is the central
banking system of the United States
they have the ability to print money
they can increase the amount of physical
dollars out there or increase the amount
of currency through digital things so
the amount of money in circulation they
can increase this
and so if we go to a very basic example
if we live on a hypothetical world where
there's me you and three other people
and each one of us us five have twenty
dollars each and that's it we're each
equally owners of 20 of this world's
wealth but what happens now if this new
alien government comes in and then they
magically
gave us twenty dollars more each
are you going to be 20 you know double
as wealthy as you were before you might
feel like you are for a minute because
you see oh my God I have forty dollars
there's only a hundred dollars in this
world I have 40 now and then you go and
talk to your friends and you go shopping
and you realize oh everybody has forty
dollars so now all of a sudden the price
of anything you want to buy is going to
be double because you've increased the
amount of
currency in this case without increasing
the actual wealth and so this is where
you kind of have to differentiate
currency from money because
you have to kind of Define what money is
because money can can have a couple
different definitions it can be a store
of value or it can be a means of
exchange and what I mean by that is
money as a store of value if you look at
physical gold for example gold is your
traditional store of value because it
takes time effort and labor to mine
physical gold so that time effort and
labor is represented through a physical
gold bar and that is the value the
physical gold
now if we compare that to something like
our paper dollars
it's very easy to transact with it's a
very good means of exchange gold is
difficult to transact with if I wanted
to go to McDonald's and buy something
with some gold it's going to be very
hard to do that versus with dollars it's
very easy to exchange however
it can be easily manipulated because the
Federal Reserve Bank can print money
essentially on command so they can
increase the amount of dollars out there
which decreases the value of each
individual dollar so while our dollars
serve as a very good means of exchange
it's not a very good store of value this
is where now what wealthy people do is
they want real money they want something
that's not only going to store their
value but also hopefully increase in
value this is what assets do if you look
at hope we hope right there you invest
in assets for the purpose of making
money how do they make money by
increasing the amount of value that it
provides when you invest in a company or
an ETF or anything
you want to invest in something that you
believe will be more valuable in the
future if you didn't believe that you
wouldn't put your money in there how is
it going to become more valuable how has
McDonald's or Amazon going to become
more valuable their goal is to produce
more value to create something new that
will provide more value to more
customers and then that value is
represented through Revenue through
profits through money so you're
investing in something that you believe
will produce more value same with real
estate you want to invest in an area
that you believe will be a more
desirable area because if you invest in
an area where businesses are moving too
where people are moving to where jobs
are moving to uh you own that land you
own that property you own that building
that is now more valuable because more
people want to be here and now that is
represented through money through this
currency where now more people want to
be there so now rents are higher
property values are higher
this is why this stuff gets complicated
and why people turn their brains off
because for instance if you pick the
wrong neighborhood you can lose your ass
right and this is where ETFs index funds
become very interesting to use real
estate as an example I personally
because I recognize how ignorant I am I
would much rather be investing in a
whole bunch of neighborhoods across not
only this country other countries
because I don't know which one's going
to pop off yeah right so because there
is so much uncertainty it's like as you
spread that out now but to your point
you're limiting your upside but you're
limiting your downside right that to me
is far wiser you're never gonna you
don't become the next Ray dalio by doing
that so you're not going to turn into a
billionaire but when you think like when
Ray Dalia was pressed like what would
you do like if you could only leave a
set of instructions to your kids about
what to do with their money you couldn't
actively manage it for them you couldn't
have your company do it you just had to
give them instructions and he came up
with what he called the all-weather fund
yes and so it's just like ah I don't
know what's going to happen so here's
like the diversification that you should
put it across and you're not going to
make as much money but you're not going
to lose a bunch of money either exactly
and so
all of this stuff is so freakishly
complicated that
even better it is so easy to be wrong
and so hard to be right that your odds
of getting it right consistently enough
because it's to your point about the
monkey if you looked at it in six months
monkey probably loses you look at in 12
months monkey probably loses 18 months
probably loses two years maybe loses
three years though it starts to be like
all bets are off and by the time you get
to 10 years it's like the monkey's
winning just because you just left it
alone yeah instead of thinking that you
could outsmart the scenario and Warren
Buffett did a very similar bet against
uh some major hedge funds on Wall Street
and what he bet it was a one million
dollar bet that the winner would give a
million dollars and then they would go
to charity and his bet was that the
average person would be better off by
investing their money into a low-cost
Index Fund as opposed to actively
managing the money actively trading
their money like the hedge funds were
doing over the long term over a 10-year
period and what happened was exactly
what you said in the beginning the hedge
funds were crushing the index fund uh
the the index fund was down hedge funds
have gone up because they were able to
find these trades and make all this
money in the short term and uh the media
was asking Warren Buffett how do you
feel about it he said the 10 years are
not up yet yeah and then come year 10
well then we had some swings on the
market some hedge funds had some losses
you took out their fees which is also a
big chunk of it after factoring in the
fees and all that other stuff
the index fund one and what did he do he
just put his money into it set back and
didn't do anything versus the hedge
funds are spending all their time
managing the money trying to beat the
markets and they did for a little bit
but then over the long term they didn't
and then when you factor in their fees
for spending all that time trying to
beat the market now your returns are
less than if you just put your money
into the market and didn't have to do a
thing yeah and so this is that basic
Financial education where it's not as
attractive how much did you pay for your
first share of Ford Motor Company two
dollars so this is what I want people to
hear and I'm glad it's coming from you I
was very honored to have Wall Street
Trapper on as well because I want people
that are I know minority
um in the name of your program isn't
about being a literal or ethnic minority
but it's about thinking in a new way but
having people that are minorities at
least in this country
um say like hey if you do the right
things you're going to be able to change
your circumstance what do you say to
people that either think well it's okay
for other people but
for me either because I'm poor or I'm a
minority it's never going to work for me
so I'll kind of give you the story of my
family in that sense because
the reason why people come to America is
because of opportunity
you have the opportunity to own
something
own a home potentially own equity in
companies build your own company you
have the opportunity to build something
which is something that you can't do in
a lot of other places in the world
my grandparents were refugees
they had some land and in 1947
the state of Punjab was severed
and when that happened if you were sick
which is the religion that I am and
you're on the west side either you
migrate East or you're going to be
killed whoa so now my grandparents
literally all they had were the clothes
on their back and a sword in their hand
and they ran
during the process my grandfather was
attacked and he had to literally fight
for his life he saw his uncle get his
head chopped open in front of him put
him on a horse that was the last time he
saw him he got to the new east side of
Punjab in India and didn't even have
shoes on his feet didn't have a place to
sleep had literally nothing
now from there you got to start right
you gotta you gotta start now all over
from scratch
and there's a lot of political issues
you know unfortunately over there and so
that's when my parents my dad you know
my mom were like we want to get out of
this country we want to go somewhere we
have better opportunity
to come to America where you know don't
speak the language don't know the
culture don't know the people don't know
how life is I mean India is a very
different world it's a beautiful place
but it's very different than here
and you start over
why as a minority as a minority just for
the opportunity because that's all you
know you there's risk but you see the
opportunity there and do you think
looking back now do you think that
because it I often think that what we
refer to as being an ethnic problem is
actually just there is an element of
what I call school of fish like you're
just you're gonna group up with people
that look like you it's just so embedded
in the the subconscious but I think a
bigger thing is just it's either
majority or minority right because
globally the Indian
um ethnicity is massive billions but
when you come to the US now you're a
minority do you think that the trade-off
of going from being uh the majority
ethnicity I mean everybody in India
basically is shares the ethnicity I know
there's religious differences sure but
then coming here and being a minority
does the opportunity that America
provide outweigh whatever detriment
there is to being a minority you know
again if you're willing to work you have
to be willing to work and kind of just
break out of whatever
anytime you see a majority kind of just
group think you have to be willing to
question that but you know the
opportunity you have here in America is
it more difficult now than before
absolutely is it more difficult for some
people to know there's absolutely
however
it's the best opportunity you have in
the world and you know that's why
literally even till today yeah people
that are willing to risk their lives to
come to this country and I mean actually
risk their lives and so you know you
have that aspect and I can speak for me
where six the religion that I am they
are a minority in India and you know
there's a lot of issues that come with
being a minority anywhere but again
where do you know here you have more
opportunity than anywhere else and so
the way I look at you know for me
personally is my parents came to this
country with next to nothing so I got
nothing to lose and everything to gain
right and so
this is the place where that opportunity
exists but now you have to be willing to
work hard
but you also have to be willing to work
smart I I can't stand what people say
work smart don't work hard but to me
that's all complete because you have to
do both you have to do both because if
you're not willing to work hard you're
smart working is effectively worthless
you have to be willing to apply both
together and I had none of this you know
Financial education right for me it was
dad I want to go invest in real estate
you're stupid go become a doctor you
know it's it's I had to do all my
entrepreneurial stuff in secret the
first my parents didn't even know that I
was doing this business stuff until I
was on the news I was running a
different sock company
and this is now you know a couple years
after
and
um we were doing well and we got
featured on the local news now my
parents got a call from a family friend
and they said oh we saw your son on the
news and my parents were like oh God
what did he do now and they're like no
no he has this company he's doing really
well they're they're growing him my dad
was like what and so that you know he
sits me down he's like what the heck is
going on and that was the first time
they were like okay you can actually do
something with this right and it was
like
you have to for me it was like I
understood what I wanted I knew that I
saw this like really
I wanted to achieve success and I knew I
was doing it for Good Intentions
um I knew I didn't have like bad
intentions with what I wanted to do but
the question was you know how do I get
there because it was like I if I know if
I try to convince my parents it is like
it's going to be extremely stressful for
me I'm gonna stress them out it's just
not gonna work so I'm just gonna try to
figure it out myself and I'll fail
because I'm in school so I kind of had
that back up but for me like I like I
went to law school as well
the problem was I wasn't the best
student in school in law school
particularly I did well on the bar exam
I loved learning and so for me like you
know I knew I needed to pass the bar and
so I studied hard and I actually did
really well but in the classes I was not
very good except for the couple of the
business ones because I really enjoyed
that
but for me it was just like I just need
to get the degree that way I can like be
done with this because I went to law
school because my parents found out that
I wasn't going to be a doctor they're
like you got to at least become an
attorney to keep pride in the family and
so I was like all right well if I go to
law school I can go to law school part
time and if I go to law school part-time
I can work on me my business full-time
so that was my mindset with it and you
know but I knew that yeah if I graduate
law school and things don't work out I
don't even know how I'm going to work as
an attorney because I have no idea I
don't know how to file a lawsuit I have
no idea like what to do so if I graduate
like I I'm gonna have to like start all
over and figure it out after I'm done
and it used to give me a lot of anxiety
but I was like you know this is why I
have to figure it out it was a mission
because one I wanted to do to give back
to my family and myself and second I
wanted to do it because I wanted to
prove a lot of people wrong and I
remember when I used to talk about this
everyone's like oh you shouldn't do it
out of spite don't do things because you
want to prove someone wrong I was like
you don't understand you don't get some
of the you know the the things that you
hear the things that you see
and sure you know
maybe it can't drive you forever but it
can take you I mean that pain of seeing
the the things that people say to
because you know in between I started a
sock company and when I was doing the
sock business
this is when you know people started to
be aware that I was an entrepreneur and
I wasn't like super successful I was
doing okay uh and that's when I got on
the news but you know just think about
this I was supposed to be a doctor now
here I am
selling socks on the internet and
everybody is like oh so you left you
know this idea of becoming a a doctor
now you're just selling socks and you
know hearing that for years
it is like one day I'm gonna have your
kid want to work for me that was like in
the background I never said that but I
was in the back of my mind your kid's
gonna want to work for me one day and uh
it's like that driving force where I
know I'm gonna prove this person wrong
I'm gonna make this person like really
like see like hey I I am worthy I can do
something but it takes a lot of work you
know going back to that
but it's it's be with anything being
willing to try being willing to take
risks being willing to make mistakes and
being willing to learn from it because
you know I like I said you know for me I
was willing to be dumb or stupid I never
saw that risk until more recently
because for me it was just like I know
this is what I want
and so the risk really was never even on
my Horizon if I had a business idea I
would start it like that same night
because for me it was like I just gotta
I want to do this I want to figure it
out
books weren't they were kind of giving
me an idea my teachers weren't teaching
me this I don't know who to turn to my
experience was my teacher that's how I
learned how to be an entrepreneurs how I
learned to start investing that's when I
started learning about money because
you know the whole issue with the money
stuff I mean this is something that
we're never ever even remotely talk
taught about and it's now becoming a
real pressing issue you have to be
willing to try learn risk failure you
are going to fail I always try to get
people to understand that failure is the
most information Rich data stream that
exists it sucks it hurts it can be
costly but one in triggering the parts
of the brain that have to do with pain
you trigger the parts of the brain that
have to do with memory and focus so
you're more likely to really look at
that thing that you don't want to happen
again to figure out why that happened
right memorize it and then you're going
to get better the next time and to your
point about having a chip on your
shoulder and people telling you that you
can't do something and thinking one day
you know your kid's going to ask to work
for me it probably is a primary driver
over an extended period of time like you
said it'd be a little caustic to the
soul but it's so powerful in terms of so
you've got light energy and dark energy
right just to be like All Star Wars
about it and if what I have found in my
own life is that the hardest times the
light energy will only get me so far and
then I'll hit a brick wall and I'll want
to stop and it's only when I tap into
the dark energy of like I will not let
this person be right about me I am not
going to back down because I know
they're just waiting for me to fail yeah
that it actually does give me another
boost now I try to split it call it 80
20 where I'm spending 80 percent of my
time in the light the beautiful things I
want to do the people I want to help
yeah but dude let me tell you 20 of the
time I'm thinking that the person that
really wants to tap dance on My Grave it
gets you going right yeah 100 and and
you know I found the same way because
for me in the beginning it was just
figuring it out I went from business
idea to business idea to business idea
because for me I was just trying to
figure it out hop it from one idea to
the next but then you know you talk
about the light energy for me it was my
really driving my passion and my mission
and my purpose and that became more of
the light energy because now you know
after a certain point you're like the
money doesn't drive you it just is what
it is right it's just like I'm fine like
I I'm not a very materialistic person I
don't really care you know about brand
names designer names first time I made a
million dollars I was driving a 500 car
right it just doesn't matter uh like
sure it provides some sort of benefit
more comfort more value but after a
certain point that money is not a driver
it's now what is my purpose and
for me you know that Minority mindset
where rich and started making videos I
wasn't doing it to make money I did this
as a hobby because I got scammed in that
sock company
I'm just talking about things that you
know I wish somebody would have told me
when I was younger I like having to do a
business having to do with money
so I did it as a hobby and people will
say you can't just do that as a hobby
I'm like dude you don't understand I
didn't invest any money into it I was
making videos off my phone I bought like
a 30 or maybe 35 tripod off of Amazon
and I was just making videos for fun and
like
my friend asked me and I think I was
around 10 000 subscribers and he asked
me he's like how much money are you
making off of YouTube like what do you
mean say how much money are you making
from your ad Revenue off of YouTube
I don't know what do you mean he goes
into my YouTube back end with me and
this is before YouTube had requirements
of like you gotta have X number of
videos X number of subscribers every
time anybody could monetize any video
he's like dude you haven't even turned
monetization on click one click and now
you can start making money after videos
I was like oh I didn't know that I
really enjoyed it for me this was like
really fun and something that I loved
doing which is why I did it and then
minority Minds started to grow started
to make some money
and I was like oh I can actually like do
this like I can work on just spreading
this this purpose what is it about what
you guys publish that people respond to
it's one email right it's a newsletter
and you know when it's coming what time
is coming you know where it's going to
be every day and so people want to open
it we don't need to have a the world is
ending you know where it is and then we
just break down what's happening in the
stock market the real estate market the
crypto Market what's happening with
inflation what's happening in the global
economy and then if there's anything
else we'll add that in there as well and
it's super fun and so you can avoid that
headache avoid all that you know
spending hours and now here it is in a
fun way to read you know what should
somebody that in this environment they
want to pay attention they want to make
the Right Moves they've listened they
know that you bought your first stock
for two dollars they know that no matter
what they look like they need to be
changing their behaviors that they need
to find assets like in this uncertain
time where should people be putting
their money I know there's no
one-size-fits all so so
I'll tell you where I invest my money I
invest my money in five places my
business Market briefs and other
startups and that's my money in real
estate where's my money in stocks invest
some money in cryptocurrency and invest
some money in physical gold now
I don't recommend you go on it to start
putting your money everywhere start with
one place how did you pick those five
and how do you allocate what percentage
so I don't giving a percentage will be
hard because valuations change all the
time but I have been less and less
actively before my active investment
main one was real estate that was a
thing that I loved and the thing that I
really understood so anytime I had extra
cash I would go out and buy rental
properties but now I'm doing less and
less of that so I can have more money to
invest in my own company Market briefs
um
but now what I do is out of my company's
minority mindset I pay myself a salary
out of that salary pretty much all of
that gets passively invested it gets
invested into stocks crypto and physical
gold
so what does that mean right well in
stocks I have a system where every
Wednesday you can pick whatever day
doesn't really matter but for me it's
Wednesday my money is automatically
pulled out of my bank account and is
invested into a few different ETFs so an
ETF is an exchange traded fund and you
could think of it like a group of stocks
so instead of going out and investing in
Amazon one company and then hoping
Amazon grows you invest in a group of
companies like some will give you
exposure to 30 some will give you
exposure to 500 some will give you
exposure to thousands there's a bunch of
different ETFs out there and there's
ETFs for a bunch of different things
like one example that I invest in is the
S P 500 ETF the S P 500 is a group of
the biggest 500 companies on the stock
market
and so when you invest in this ETF
you're literally or indirectly slash
directly investing in the biggest 500
companies on the stock market without
individually investing in all of them
you invest in one ticker symbol and it
gives the exposure to all of them so
you're in essence investing in the
companies that make America America
investing in America
you can invest in specific sectors
technology health care you can invest in
uh companies around the world emerging
markets and so you can find these ETFs
you know again Google search YouTube
you'll find kind of the things that
you'll see what you're interested in buy
what you're spending your money on uh
and and so that's uh one thing that I do
I have a few ETFs every Wednesday I'm
buying that and then I have my
cryptocurrencies so for me you know I I
think cryptocurrency is going to have a
lot of value in the future but I also
believe it's going to be very volatile I
think we're going to see a lot of you
know just like anything else there's
there's a lot of dumb money in crypto
and you know anytime you have all this
money that was printed right money is
going to want to go to dumb places and
so I think that we're going to see some
cryptocurrencies go under and uh again
what is that going to do it's going to
create Panic okay volatility is going to
create fear so you know especially when
the newer asset class you have to be
willing to understand that and withstand
that
and so you know I understand that you
know I'm not the most educated person in
crypto but I understand the basics I
believe in the value of the blockchain
so I invest in Bitcoin ethereum and a
couple of smaller coins uh the things
that I believe in and that's happening
every day
and then I invest in physical gold every
month I have some cash going to buy some
physical gold every month and so this
has happening on autopilot it's
automatic it's passive and it's
consistent
and it's just a simple way for me to
invest because what a lot of people try
to do when they invest they say I'm
going to invest in the stock market okay
either you know when times are good I'm
gonna try to find the next hot stock the
thing that's been rallying like crazy
everybody's been making a ton of money
on it so I come in and buy investment it
starts to go down then they get scared
they lose money and then they sell
or when times are bad they say I'm going
to buy at the bottom I'm going to wait
for that perfect time to come in and buy
and
this happened again in 2020 in just
textbook form
because the market started collapsing
and it was the fastest collapse that
we've ever seen in the markets even
faster than the Great Depression and so
what I was saying was on YouTube I said
look here's what I'm doing I'm buying I
have the companies that I like because
my ETF strategy is happening passively
but actively I'm also picking and
choosing what I want to buy I already
knew which companies and stuff that I
wanted to own I'm just waiting for a
good entry point a good price to buy so
what I said was look when Things fall
but 10 to 15 I buy when it falls by
another 10 to 15 I buy more and it falls
by 10 to 15 I buy more aggressively I
just buy the way down in phases because
I can't perfectly time the market and
anytime I said that I mean it was just a
flood of comments people saying why
would you want to buy now the whole
Market is going to implode it's going to
go way lower just wait that we can get a
better buying opportunity and I said I I
can't predict the bottom that's not my
game I'm not trying to time the market I
don't got a crystal ball
and then what happened the FED opened up
the money printer and and it did
something called unlimited quantitative
easing which is something you know we've
never really seen before and so they
just flooded the economy and markets
with money and now you had the market
the fastest collapse ever ever and then
you had the fastest stock market rally
in the history of time and it was like
no I don't I mean I couldn't predict
that I don't know who could have
but if you were waiting to time the
market you missed the opportunity and
the people that weren't trying to and
you just you know you wait for the good
entry point you're buying even when
everybody's scared they were the ones
that were able to make a lot of money
very quickly way faster than pretty much
I could have anticipated or anybody
could have anticipated just because you
understood you know you buy in phases
recessions create more millionaires than
any other time like you said because
when you have a recession a market crash
people get scared and then they sell
their assets what's an asset stocks real
estate crypto gold it can be any type of
investment depending on what the crash
is what the recession is about
and that then creates a buying
opportunity for somebody who has access
to cash or capital and somebody who is
financially educated so if you have to
cash it prepared and you have the
education of knowing what to buy well
now a crash creates a discount for you
to come in and buy an investment on sale
you could think of it like Black Friday
for investors you get to go shopping at
a discounted price because now people
are selling because they're scared and
what you want to look for now is good
Investments that are being hurt not
because their investment is on the verge
of bankruptcy but because the economy is
pushing the price of good Investments
down so that's kind of on a in a
nutshell to answer your question what
that means but now if we dive a little
bit deeper we go a little bit higher
level how do you do this what does it
mean well
if you ask the majority of people or if
you just ask anybody is a recession a
good thing or a bad thing
most people are going to say it's a bad
thing but it's really relative depending
on which side of the equation that
you're on see it's bad for so many
people because recession means well I
might lose my job I might lose my home I
might lose my savings so it's bad in
that sense where if you're not prepared
you might not be able to weather the
storm and you might get financially hurt
if you've seen this happen for I mean
forever now that anytime you see a
bubble burst the people who are not
financially educated the people who are
not prepared the people who don't
understand what's going on in the
economy get burned I remember the first
time it occurred to me I was like wait a
second if I don't lose my job then a
recession doesn't impact me now that was
before I had any money invested so now I
have a better understanding of if you're
counting on income or whatever from your
Investments then it can still be a dicey
period but that was one of those things
like the a recession was a boogeyman it
was like something to be afraid of but I
didn't really understand why I was
supposed to be a afraid and so my
question is why do people get scared in
a recession what is it that makes them
sell I'll give you a very specific thing
so in crypto
I haven't even though the price is
limited I haven't sold a single eat not
a single Satoshi I've just been holding
not tense about it so why do so many
people get scared in a recession so
there's two reasons why someone sells
either it's a forceful sale or it's a
voluntary sale the voluntary sale is a
little bit easier to understand so I'll
explain that first
so when the 2020 pandemic hit
we saw the stock market crash now I
think most of us under crash is a
definition by the way well yeah crash uh
bear market is when you see the market
Fall by 20 or more
now
the stock market when the economy shut
down in March of 2020 we saw the fastest
stock market crash in the history of
time now naturally people got scared
faster than that's a Great Depression
whoa
people got scared and I think most of us
understand that your 401k for example is
a retirement plan that you don't want to
touch until you are near retirement
what happened well we saw a massive
amount of people sell out of their 401ks
near the bottom of the 2020 stock market
crash because they're convinced it's
just going to keep going lower and it's
like I got to get out now you just see
your portfolio in the red you lose 10 20
30 40 50 you get scared and you're like
I want to save whatever money that I can
because you don't understand what's
going to happen I mean if you look at it
from the last 100 years chart you'll see
that crashes happen but then each time
they happen our economy is stronger
rebounds and the market moves higher but
we get this like narrow Vision but we're
looking at today tomorrow the day after
next week and now we want to pull out as
fast as we can to save quote unquote
save our money and so you sell so this
is a voluntary seller now you get scared
you panic people talk about how the
world is ending I mean the media is in
the business of selling hype okay it's
as unfortunate as it is you have to
understand this things are typically
never as bad as they seem and things are
typically Never As Good as they make it
seem so it's typically somewhere in the
middle and so now when you know that
you'll understand that okay the stock
market is a liquid investment meaning
you can buy and sell a stock with the
click of a button I can buy and sell a
share of a company literally within two
seconds
and so what does that mean well if I
start reading headlines I see the market
going down and start getting anxiety I
start getting this fear I might just
want to sell I mean I can do it in two
buttons and if all my friends talk about
how they're selling how they're losing
money and the media keeps talking about
how the Market's collapsing the world is
going to end because the media is either
going to say the world is ending or
nothing bad will ever happen right it's
typically one of these two extremes
because that's what drives them and I
want to guess that's one of the things
I'm going to push you on later is like
I've heard you talk about this people
lie a lot they do and then they come out
in admit yeah we were lying but we had a
reason but I won't be rainless now but
like that kind of stuff freaks me out
and that's and it's the reality of life
and we'll talk about that so now if you
understand that what does that do it
manipulates people's emotions emotions
then drive our actions and what are
these actions we sell at the bottom and
then we buy at the top because at the
top it's the same thing people say oh
everyone's making money on the stock you
can't believe how much money these 17
year old kids from high school they're
making you can't believe how much this
hedge fund made you can't believe how
much money what ever that your neighbor
made and now you get jealous you get
this fomo you don't want to miss out you
come in and buy then at the bottom is
the opposite of motion so that's the
voluntary style because most of us don't
have the psychology which is a part of
the financial education of how to manage
our investments the second is the
forceful sale now the simplest example
that I can give you of this will be if
we backtrack look back to the 2008 real
estate crash now if you bought a home
for four hundred thousand dollars and
you had a adjustable rate mortgage which
was very common back then and it's
getting common again it is getting very
common again which is very bad news but
they were very common and
another thing that was very common back
then was a zero percent down payment but
let's assume we put a little bit of
money down because you were you wanted
to put some skin in the game so you put
a little bit of money down you put three
to five percent maybe ten percent down
but what happened was a few years after
he bought the home interest rates went
up and now you realize really fast I
want to walk people through what an arm
is so an adjustable rate mortgage I had
one if I had known how dicey I talked
about this not have done it so an
adjustable rate mortgage you're
basically betting that the future is
going to be better than the current
moment so you take something with uh a
um a certain
um interest rate and you're like okay
I'm gonna be able to refinance either
the value of my home is going to go up
or interest rates are going to come down
whatever but I'm going to be able to
refinance my home so The Story Goes or
I'm going to be able to pay it off
whatever before that huge increase you
are betting literally your house that
you're going to be able to either make
enough money to cover the increase or
that you'll be able to sell your house
at a price that you like or be able to
refinance it before that happens exactly
it is so dicey so people end up getting
in these insane situations that tends to
go along with when people are getting
pretty loose and fast about not
expecting as much money up front so now
you don't have any equity in the
property you get upside down meaning
that the house is worth less than you
owe so even if you sold it you're going
to be selling it for a loss and so now
you're in this really dark spot where
you can't sell it the interest rate just
jumps sometimes dramatically right and
so now you owe significantly more I mean
it could be 50 more a hundred percent
more and you're just in a really bit you
can't get out from under it unless you
just let them foreclose on you right or
you have to find a way to pay that money
and it is speaking from experience I was
so convinced that my life would be in a
fundamentally different place right than
it was when I took it so I put a
five-year bet on myself
and dude it ended up working but oh my
God in in the intervening five years I
became so much more financially literate
that I was like what was I doing like
that was the most dangerous thing I
could have possibly done it's a very
dangerous vehicle when it's given with
no Financial education and the problem
is it's not given with any Financial
education because see a banker so I'm
gonna just explain this for a second a
banker is in the business of making
money how to make money by selling you
money so they're trying to sell you as
many loans as possible and now if you're
looking at this 400 000 home well let's
just assume for rough numbers that the
mortgage on this four hundred thousand
dollar home is two thousand dollars a
month and you might say I'm kind of
stretching myself a little thin but I
want to own this home the banker doesn't
want you to not buy the home because if
you don't buy the home they don't get
paid so now what they can do is say well
how about you buy this 400 000 home you
don't pay two grand a month but instead
you just pay 900 a month off are you
telling me I can buy this 400 000 home
for 900 a month with nothing down yeah
how about you have this free TV as well
because there was promotions back then
where they would give you a free TV you
literally put no money down now you can
buy this home
and so what was happening is people were
buying these types of homes with these
types of deals thinking they have this
amazing price 900 a month and it was
given with zero to extremely little
Financial education because then what
would happen is after a number of years
your interest rate would readjust
because you were given this low teaser
rate for the first few years and the
pitch was well don't worry about it home
prices always go up so if home prices
continue to go up or not if when home
prices go up in a few years if you can't
make the payments don't worry about it
just refinance out or sell the home and
then you have cash in your pocket so
what could go wrong and this was the
pitch now again many people are not
financially educated we're not taught
about money in school so that was the
first aspect the second aspect was these
loan officers banks are incentivized
very heavily to sell as many mortgages
as possible because the more mortgages
you can sell in a month the bigger your
bonuses and so you had these two aspects
happening so now you bought this 400 000
home you pay 900 a month
and things are great then a few years go
by you get this letter in the mail
saying your payment's going to go from
900 a month to let's just say two
thousand dollars a month
now if you don't have the ability to pay
this extra 1100 a month you're gonna say
oh that's quite a bit oh well no big
deal let me call up my banker and tell
them the situation and he'll tell me
what my best options are because my
banker is a good financial advisor right
you call up the banker say hey Banker
um I can't afford this 2 000 a month
what are my options he says well you can
refinance or you can sell this is what
was happening now getting closer to 2008
and so you said okay well let's get an
appraisal or let's look at the value of
the home you you bought it at 400 000
now you maybe owe 380 000 over the first
few years because the first few years of
your mortgage are interest heavy meaning
the majority of your monthly payment is
going towards interest not paying down
your balance
and so now they look at it and they say
so the value of your home is now 350
000. you owe 370 380 meaning you're
underwater so now if you owe 380 000
under 350 000 home no bank is going to
want to refinance because now you're
underwater they're not going to want to
re-lend you any more money otherwise
you're gonna have to bring cash to the
table
you can't sell the home because if you
sell your home for 350 000
you need to still pay the bank the other
380. so you need the thirty thousand
dollars coming out of your pocket and if
you don't have thirty thousand dollars
you can sell so what's the next option
for if you can't make the monthly
payment either you're going to walk away
or the bank is going to force you to
walk away through a foreclosure this is
now a forced sale
so now the bank comes in they take the
home from you and now the bank wants to
liquidate because they want to not own
properties they want to just lend money
that's their business they don't want to
own homes and so that was what happened
in so many more homes hit the market you
see the same thing happened in the stock
market when you buy stocks on margin and
now what does that mean it means you're
using debt to buy stocks and when you
use debt to buy stocks
your lender your brokerage doesn't want
to see your portfolio Fall by a certain
amount if it falls by a certain amount
they're going to ask you now to cover
meaning put some money in and if you
don't have this extra cash that reserves
to put more money in because you thought
your investment was going to go up so
you went all in well now they're going
to force you to sell and that is now
again a forced sale so now markets are
going down what causes people to sell
either voluntary because you get panicky
you get scared you get worried or you
think you have a bad investment so you
want to exit as fast as possible or on
the flip side it's a for sale where now
used debt and you were over leveraged
and now you're underwater and now you're
being forced to sell so what does this
do this increases the supply of this
asset now again what is an asset stocks
real estate crypto it can be any asset
out there an investment
so now when you increase the supply of
this asset
well that can now bring the price of
things down because the price of
anything really whether it's an asset or
something else depends on supply and
demand when you have a lot of supply of
something with no demand or very little
demand the price of this thing is going
to fall because now all the sellers are
fighting against each other to get
somebody to buy it on the flip side when
you have a lot of demand but no Supply
the price of this is going to go up this
has been the real estate market for the
last two years or so we have had this
massive demand of people wanting to buy
homes why well for one the pandemic
changed our Workforce where now you can
work from home so people want a home
with an office in the home second people
want to move out of the big cities
because they realize like if I can work
from home I don't got to pay this five
thousand dollar a month in Manhattan I
can go live in a suburb and pay a fourth
of that and have a bigger home and then
third mortgage rates were the lowest
that we have ever seen ever in the
history of American modern history we've
never seen mortgage rates this low so
this created a massive demand meaning
people wanting to buy homes so you had
this flood of people wanting to buy
homes
while the supply of homes was extremely
low so some people didn't want to sell
because they were worried about the
pandemic they don't want people to come
in their homes who could have
potentially been sick second Builders
couldn't build homes because we had a
labor shortage we had and still are
facing supply chain issues so what does
that mean you want to build a home well
do you remember there was a period where
there was a huge spike in Lumber costs
Builders could not get access to certain
materials certain materials were backed
up it was harder to find labor to find
workers to help build the home and then
on top of that the cost kept going up
because now workers wanted more money
the cost of materials kept going up so
it was this big dilemma in the building
side so the inventory of homes was
artificially low you could not build
more homes
so for the last you know 18 months or so
two years we saw the situation where
demand was through the roof literally
and Supply was very low the some of the
lowest Supply levels I've ever seen that
pushed home prices up at the fastest
rates essentially ever and now we're
starting to see that slow down where now
demand started to go down because
mortgage rates have gone up so
significantly people are looking at the
higher prices of homes think I don't
want to pay this higher price so that is
starting to flip but this is where you
know understanding how supply and demand
works and you now as a financially
educated person as an investor what you
want to be looking for now when you see
Market slow downs a recession a crash
what you want to be looking for is not
the emotion but now cutting through the
noise cutting through the media
but now looking for the actual Financial
fundamental Investments where you have a
good asset a good investment that's
being hurt by the economy that would now
you can come and buy it at a discounted
price
and that's what you want to be doing and
that's um I don't want to keep going on
the same topic but after the 2008 crash
happened
that's when I first started buying real
estate and I think we talked about this
before
I didn't understand what was going on
um I was 19. I had some cash saved up
because I was running some
entrepreneurial Ventures
Detroit which is kind of my home base
metro Detroit for GMI Chrysler where the
main drivers of our economy
GM and bankrupt Chrysler and bankrupt
Ford was on the verge of bankruptcy so
the Michigan real estate market was hit
exceptionally hard and real estate
prices had fallen by 90 to 92 percent in
some instances oh my God and so that was
where I was able to come in I didn't
know all this like I look back and I
understand this now but I was 19 I had a
little bit of cash saved up and that was
when I bought my first rental property
because I didn't have any real estate
mentors or guidance or people I didn't I
didn't know any Real Estate Investors
my first real estate property was a
eight thousand dollar condo
I bought it out of foreclosure from the
bank
and uh it
previous to me buying it it had sold for
a hundred and fifty thousand dollars
just a few years prior and that was just
the market where there was nobody there
to buy it people thought that I was the
crazy one the dumb one for wanting to go
and buy real estate when the world was
ending when Real Estate was collapsing
when nobody wanted to own real estate
everybody told me that I had lost my
mind
uh but that was the situation and you
have to understand the psychology I've
said this before I'm gonna say it again
history while it does not repeat itself
it does Rhyme wealthy people that know
how to use debt effectively that's what
they're doing they don't sell the asset
they borrow against the asset and as
long as there's a Delta between the cost
of the loan and the amount that the
asset goes up you now never have to sell
the asset you can just keep borrowing
against it this is how real wealth is
made real generational wealth