5 HABITS Every SUCCESSFUL INVESTOR Must Develop! | #BelieveLife

that was a dumb strategy right but i tripled my money i tripled my money because i got lucky if you buy a farm you know you go up and look you know every couple weeks to see how far the corn is up i'm going to give you something called the ladder of personal finance which tells you where your money should go wanna be happy build a life not just a business hey it's evan carmichael and this channel was created to help you overcome the number one challenge that is holding you back a lack of belief in yourself you watch these videos because you know there's something more inside you you've got michael jordan level talent at something so today let's live your best believe life and learn the five habits that every successful investor must develop [Music] okay let's kick it off with habit number one think long term with warren buffett if you buy a business if you buy a farm you know you go up and look you know every couple weeks to see how far the corn is up and you know you worry too much about whether somebody says this is going to be a year of low prices because exports are being affected or anything like that you know you buy a farm and you hold it for i've got one farm that i bought in the 1980s and my son runs it but i've been there once you know i mean it it it doesn't grow faster if i go and stare at it you know i can't cheer for it you know more effort more effort or something like that and i know there's going to be some years when prices are going to be good and some when the prices aren't going to be good i know there's years when yields will be better than others but about the farm and and uh if it just doesn't i don't care about economic predictions or anything of the sort i do care that over over the years it's well tended to in terms of rotating crops and i hope yields get better which they generally have in fact that farm 100 years ago would have probably produced 30 bushels maybe 35 bushels of corn per acre now in a good year you know it'd be 200 i mean we really made progress in this country that's one reason commodity prices go back a couple hundred years they've moved so little is because we've just gotten better and better at whether it's cotton or whether it's it's corn or soybeans or all kinds of things and you and i have benefited from that and so apple's kind of like a farm well it's it's a it's a long term investment and and if you owned if you own the the best auto dealership in town the best brand and had somebody good running you wouldn't drop by every day and say you know how many people have come in today or you know i think interest rates are going up a little maybe that'll slow down our sales or anything no you buy it knowing there's 365 days a year and you're going to own it for 20 years so that's 7 300 days and you know they're gonna things are going to be different from day to day and year to year you shouldn't buy it if the day-to-day stuff is important habit number two build investing discipline with dan lok you see when it comes to investing do not get fancy you don't need sophisticated complicated techniques if anything you want to go with something very very simple something very proven most wealthy people that i know they invest in only a number of things could be real estate could be index fund could be the stock market their own businesses that's it they're not chasing the latest what you see on social media the latest investment scheme and things like that no they only invest in long-term proven investment vehicles stocks are one of those vehicles maybe you're not in a position to invest in real estate that's okay you're still saving up some money when it comes to creating wealth i want you to understand something here skill right skill your investing skill that's very very critical but what is more important is discipline discipline having that discipline don't get the shiny object syndrome let's say you could go back in time you and i could go back in time and you invest 1 000 in berkshire hathaway one buffett's company invest in that stock now at the time the stock was trading at about 19 a share fast forward today the class a shares of berkshire hathaway about three hundred thousand dollars a share if back in the days you would have invest one thousand dollars in berkshire hathaway fast forward today do you know how much that would be worth comment below that would be worth over 16 million dollars for most people earning 16 million dollars is virtually impossible by putting aside 000 and you don't even think about it you don't look at it ever again and one day you wake up you've got 16 million bucks in your portfolio but that's not the most amazing part do you know if you would have invest 1 000 since 1964 every single year until today how much that would be worth your portfolio would be worth roughly 124 million dollars 124 million dollars i want you to think about that for a moment let the numbers sink in you see the key to creating wealth is actually very very simple all you need to do is to earn more money than what you actually spend either through a high income skill or multiple income skills or a scalable business that's all you need to do and then you take the difference right the spread and you invest the difference into some kind of investments solid investments over a long period of time that's it nothing complicated about it there's nothing complicated about it you see let's say if you're making 35 000 a year let's say you make 35 000 a year every single person has made most people in their lifetime over a million dollars you take 35 000 a year you times that by 40 years that's 1.4 million dollars that's over a million dollars you have a million dollars slipped through your fingers but we just don't know and we don't have the habit of investing and that's the issue instead of looking for the greatest investment develop the best the greatest investing habits not wait till you have money because if you're not investing the little bit of money that you have today guess what as you make more money you're not going to invest it it's not going to happen you're making a thousand dollars you're not investing a dollar what makes you think when you make ten thousand dollars a hundred thousand dollars you're going to invest more and more it's not going to happen you don't have the habits of investing it's not about chasing the latest investments now you may be thinking so dan what are you saying you mean all i need to do is just put a little bit money aside put it in some kind of low fee index fund and that's all i need to do yes that is exactly what i'm saying that's it people want all these fancy techniques and all these things when you notice when you actually study how investing works and how wealthy investors invest that's exactly what they do they're not trying to kill the golden goose that lace the eggs to go buy that ferrari no when you have the habit of investing here's how money works very interesting when you get how money works when you know and when you have the discipline more money comes to you when you're not desperate when you feel secure money is a very interesting thing when you're putting money aside suddenly you have more money and you put some more money aside and then you have more money then when you keep improving and upgrading your skill sets you can earn more then you invest more now you can enjoy life money doesn't go to the people who need it the most money goes to people who knows how to multiply money that's the key when you understand how this works everything is simple hi this is dan lok i want to share with you a lesson from evan carmichael's new book built to serve this section is about making money from your purpose you have to embrace that if you never learn how to make money from your purpose you always end up needing a day job and your purpose will become a hobby if that sounds like a great life to you then i'm happy for you if not then you need to figure out a money making model that makes sense one that is consistent one that is significant one that can pay you so you can quit your job and succeed to the point where you are providing jobs for others and helping even more people you see money is nothing more than a byproduct of value creation the more people that you serve the more successful that you will be so to have long-term success it's not just build a lot or or build to sell or even build a scale it is built to serve and this book will teach you exactly how to do that habit number three learn from your mistakes with ray dalio when i was 12 i hated school but i fell in love with trading the markets i caddied at the time earned about five dollars a bag and i took my counting money and i put it in the stock market and that was just because the stock market was hot at the time and the first company i bought was a company by the name of northeast airlines northeast airlines was the only company i heard of that was selling for less than five dollars a share and i figured i could buy more shares and if it went up i'd make more money so that was a dumb strategy right but i tripled my money i tripled my money because i got lucky the company was about to go bankrupt but some other company acquired it and i tripled my money and i was hooked and i thought this game is easy with time i learned this game is anything but easy in order to be an effective investor one has to bet against the consensus and be right and it's not easy to bet against the consensus and be right one has to bet against the consensus and be right because the consensus is built into the price and in order to be an entrepreneur a successful entrepreneur one has to bet against the consensus and be right i had to be an entrepreneur and an investor and what goes along with that is making a lot of painful mistakes so i made a lot of painful mistakes and with time my attitude about those mistakes began to change i began to think of them as puzzles that if i could solve the puzzles they would give me gems and the puzzles were what would i do differently in the future so i wouldn't make that painful mistake and the gems were principles that i would then write down so i would remember them that would help me in the future from a very early age the whole idea of being right is so rewarded whereas learning from mistakes doesn't have its place right you so a kid studies there oh you're smart smart smart you take the examination and okay you do badly and but life's not like that life is mostly a matter of making your mistakes and knowing how to evolve past those mistakes and learn habit number four create the ladder of personal finance with ramit sethi what's a few simple things that they should be doing right now to have a checklist to do before the end of the year to then crush for a whole 12 months moving forward all right i'm going to give you something called the ladder of personal finance which tells you where your money should go okay this is just step by step put your money here and if you want to know all the details about it you can check out the system so in the book too it's in great detail in the book got it all right so if you've got some money lying around what should you do with it first of all if you've got a 401k match at work you should max that out that's free money take advantage of it and if you're not sure what that means go to your hr person and say does this company match any 401k contributions if they say yes do what i said next if you've got debt pay it off pay it off aggressively you know what's interesting is that most people in debt who i talk to don't actually know how much they owe and that's shocking you would think of course they would no no they don't because who wants to stare at their dead all day yeah and just feel bad about it but you know what you feel much better when you have a plan and the number one question i ask folks uh when they tell me they have debt i say number one do you know how much you owe they never do number two for the rare people who say you know fifteen thousand or seventy thousand whatever i say what is your debt payoff date you can actually plug it in you can pay uh plug in a debt payoff calculator online you can map it all out and you will be able to know the exact month your debt will be paid off based on how much you're spending right now based on how much you're contributing to that debt payoff now you will be able to see that if you add an extra 50 bucks a month or 100 bucks a month that thing will actually often times shorten by years because of the interest it doesn't matter if it's going to take you three months or four years to pay off your debt it doesn't matter to me what matters is that you know the date okay so that's number two pay off any debt you've got three if you've got money left over uh go to your roth i.r.a and if you can max that out that's a great tax advantaged accountant it's a crow's tax deferred is that right yeah yeah okay so um so that's three that's three okay it's actually post-tax money and then four if you've still got money you're going to go to back to your 401k which is another tax advantaged account you're going to max that out if you still got money you're going to create a non-taxable non-retirement account and just put your money in there now there's a few other wrinkles to this there's hsas available there's also your emergency fund that's talked about in the book and all these things there are details but that just shows you when you've got money this is where you go there's a structured way of thinking about it a ladder towards a financial success exactly and if you follow the steps it's almost like the like a waterfall it just goes from step one to step two to step three and your money's going where it needs to go automatically and you will feel great you'll feel great which is so important and also you're going to look at your accounts and see debts going down investment and savings are going up and all of a sudden you wake up six months from now and you're like oh my god i didn't realize i have that much saved in my savings account that's because of the decision you made today and habit number five the last one before a very special bonus clip is choose your teachers wisely with robert kiyosaki the lesson is here you gotta choose your teachers wisely when the market crashed in 2008 guess how much money i borrowed a lot 300 million no way from investors the banker how does that how does that work because interest rates were dropping and real estate prices were going to the toilet and when i walk into my banker this is what rich dad poured out about british airport is about a financial statement income statement balance sheet statement of cash flow it's a book on accounting people don't even know it's a book on accounting so i walked into my bank with my partner and had all this property that was floating to the surface and i say i'll take them off your hands i just give give me the money to buy the property wow that's cojones 300 million give me the money and i'll buy your properties for you that's crazy so it depends and this is my whole thing i am now 700 million almost a billion in debt really you know why because i don't pay any taxes the more debt i have the less tax i pay and the average guy goes how do you do that because you have bad teachers and so it's this whole thing that you got to choose your teachers wisely that's why i wrote the book fake fake money fake teachers fake assets i don't touch that garbage of wall street puts out i don't have a 401k i don't have stocks visual funds etfs doesn't mean you shouldn't but i don't need them okay right and the other part is look for young guys the best teachers are not on colleges the best teacher are on youtube the best teachers are on youtube wake up you know this guy is george gammon he's fantastic patrick beth david fantastic you know he's great records the fake teachers are in colleges and they're telling me to get a job right the corporate ladder you know patrick david said it the best and i love that guy he says there's two kinds of leaders wartime and peace time and a peacetime leader is a guy like my poor death he goes through all the right schools he has all the pedigrees the credentials he does all the right things he climbs the corporate on the government ladder and all that or wartime leader ghost goes to war so jobs steve jobs the wartime leader i'm a wartime leader differences i went to war i went to war twice on the front lines yeah and i checked what happened so i joined the marine corps i got a flight pull in pensacola i learned to fly go to camp pendleton i strap all my weapons i go to advanced weapons and camp pendleton i go to okinawa and then they send me into vietnam and i came out of vietnam about four months later back to back to restage in okinawa and i thought everybody had changed i looked at the fellow marines and i thought and it wasn't that they were i had been to war you got tougher it's different when somebody's trying to kill you every single mission i went down three times no way yeah and i came back stronger and tougher so i come back to okinawa i got like a week off and they're going to ship me back into vietnam again i said what happened to these guys and it wasn't that they changed i changed so what happens to entrepreneurs who go out and they get their ass handed to them and they survive if you survive you see the world differently so that's what happened to you when you get injured and all this yeah you see a different world whereas some peace time who's climbing the corporate ladder right now they just lost their job they're sucking their thumb you know this is the worst time for them yet for a wartime leader they're excited they're excited about it yeah it's the best of times yeah if you're an entrepreneur right now the world's open to you you're an employee your world's dead to you yeah an entrepreneur can create their own success and for the people that are the wartime people what is the the best advice you would give them now for the next year or two years to capitalize on how do they make more money how do they make their millions during this time what would you can't make money now you should hang it up i i tell all you freaking millennials man you got you know i don't know where it is i got this iphone if you can't make money with that hang it up you know like we used to say hang up the jock strap you're not gonna make the you can't make money with an iphone through social media through marketing you have the world at your fingertips and you can't make money the problem is between this area and this is not out here it's in here that's why you've got to choose your teachers wisely yeah you know so let me just say it again the best teachers are on youtube so it's the best porno take up your mind make up your mind which you want to listen to you know we have a choice so yeah i'm just being real to you i hear you man i hear you what's what's the best investment people can make then to to opera uh capitalizing this opportunity is the investment in education left here look if you're poor right now it was called look in the mirror that's what i always said to me says if you're looking in the mirror right now and you see a loser that's what you are you can't make money in this economy you better change your thinking you know you know hindsight is 20 20 as i said yes yes that was if you're looking you know you don't have any money you don't have a job your boyfriend or girlfriend has left you and uh soon there goes well how did i get here how did i get here there was a there was a great book called uh you know gulag archipelago by sulza nathan so he gets thrown in this in a um concentration camp or a gulag in siberia and he says how did i get here you know how you got there because he was a peacetime leader didn't fight back so people are being sold that they'll go to school get a job pay taxes save money get out of debt buy a house and your house is an asset and invest for the long term in a well-defined portfolio of stocks bonds mutual funds and etfs and i do none of that and why do you recommend the opposite because i don't have to do that crap that's that's kool-aid go to school go to school what they teach about money nothing get a job you pay the highest taxes pay your taxes i don't pay taxes get out of debt well debt money is debt after 1971 if you know your history of money your house is not an asset house is a liability and why would it invest for the long term in the stock market when i can make my own assets i don't need the stock market i'm not saying you shouldn't but i create my own assets i create my own cash flow every day i mean you mean through your business through your your right your creativity i'm an entrepreneur yeah most people are employees now i've got a special bonus clip on how to invest that i think you're gonna enjoy but before that it's time for the question of the day i want to know which of these five habits do you need to better apply to your life and your investing let me know put it down the comments below and if you made it this far in a video you're still here watching i want to celebrate you because believe nation we don't just watch videos we do something about it so that's you and you commit you promise you're going to take action immediately after watching this video give me a hashtag down in the comments and tell me where you're from cause i want to celebrate you and this isn't something i talk too much about on the channel in terms of investing i have my own philosophies and strategies around investing first off i believe the best investment you can make is in yourself as an entrepreneur as a human being to get better to learn to adapt to grow you'll make way more money in your own company than you will by investing into a stock market or real estate or something else but if you're starting to make money and you're you know keeping some pulling off the table saving for retirement whatever it is not that we're really going to retire i think if you're really a true entrepreneur even as a using as a backup plan in case something goes horribly wrong one of the only true actual sources of passive income is investing into the stock market especially when you don't have to do anything that's managed right if you're not buying something you need to check in on all the time so you can look at index funds right an index fund just matches how the market is doing and you know the market's going up you're making more money and historically the market's going to go up it'll have down periods but overall it's going to go up and you can just keep putting money into that and it'll keep paying you back but you don't have to worry about doing anything if you're managing an active portfolio then there's a little bit more work just like the advertising campaign but the idea here is you're leveraging your money to help you go out and make more money you know before we were leveraging our people to be able to be able to bring more in for our business right so just another way if you have some money saved up you can use it to bring in more money it's not going to be a huge return on investment and i still think the best bet is probably in yourself and your own business but it is another way to make money while you sleep [Music] if you want advice from some of the top investors in the world check out the video right there next to me i think you'll enjoy it continue to believe and i'll see you there you don't have to be right about thousands and thousands and thousands of companies you only have to be right about a company couple i met bill gates on july 5th 1991.

Channel: Evan Carmichael

Views: 9,350

Keywords: entrepreneur, yt:cc=on, evancarmichael

Id: FZKPSKxwshU

Length: 24min 47sec (1487 seconds)

Published: Mon Aug 24 2020