Be Financially Free and Pay Yourself First with David Bach and Lewis Howes

people who try to get rich quick stay broke long mmm show me those banner ads on how to get rich quick and I'll show you a way to stay poor forever right if you don't want to give something up like that five dollars at Starbucks for your coffee then buy the company stock [Music] welcome everyone to the school greatest podcast we've got the inspirational David Park in the house my man buddy good who you are the clap my side we just q we just man personal was it two weeks ago three weeks ago three weeks ago Porto Rico where we go I was like that was a very cool place by the way to me an amazing place to meet I've heard your name for many years you've written how many nine ten your time best-selling books back to back to back you've been in the New York Times bestseller list for 40 50 60 weeks I don't know something crazy you've been on Oprah six times today's show hundred times you've been on every other media outlet there is so I've heard about you have seen your work the automatic millionaire is something that a lot of people talk about in the money finance space so you're here now and I'm here now in by the way because I'm a fan of yours right so like it's a mutual love fester like I've watched all of this by the way it's as cool as you would imagine is it's fun so it's really neat to be here we live in LA I started West Hollywood where this all happens it's quiet you're live in Florence now in Italy going to I'm gonna leave after July 22nd and go live in Florence Italy for a year sweet music get it come on really I'm gonna come and visit I'm gonna come visit you got this new book out you've written a number of books she's got a new book out called the latte factor and why you don't have to be rich to live rich now we were just talking before this started and you were saying that there's you've got some controversial things that you do with money that other influencers or thought leaders yeah do differently totally for example you said that there's two things that everyone needs to be doing at a young age if you want to generate more wealth completely two things are investing in stocks and real estate is that right it's the two primary escalators to well escalators where you can grow your your money or investment your money can work for you as opposed just sitting in a bank completely it's like the game of Monopoly has just literally explained this to my kids yesterday I said you know when you on the game of Monopoly you go past going to get a paycheck and if you just go around the properties and you land on them you pay rent right and you can't win the game Monopoly unless you buy one green home then two green homes and three green homes and for it then a hotel right like you have to be an owner in the game of Monopoly the ironic thing is that the game Monopoly is a great lesson for all of us for life you have to own assets that make you money while you sleep that grow while you sleep and the challenge for most of America is that this stuff is not taught in school like this little book the latte factor I wrote it as a parable to reach the 98% of people who will not normally read a financial motive got my other stack over there but like most people won't have a read a financial book so I thought if I read it as a story you can read less than 90 minutes and I can teach you these life lessons the importance of paying yourself first why you don't need a budget like we'll talk about that a little bit like prisons budgeting everybody says you need a budget but just totally don't work people hate them they hate them it's like dieting right like you try to go on a budget and you're married you will fight about those budgets people go on them it's totally frustrating so we believe in budgets or no I don't know what I believe is you need to have a system that doesn't require discipline does not take time see this is the part that's different the secret to everything I've taught like you've got my other book here the automatic millionaire is it the real secret to building wealth how ordinary people in this country have built real wealth is automation mm-hmm they're saving money automatically I was thinking about I'm thinking about stressing about it they're not stressing about it they're not writing checks they're not putting cash in little pockets and envelope and these omelets and a thing and be like okay I've only got a little bit left and you know that's one look my grandmother when she started at 30 she had nothing and she used to literally save 50 cents a week and put it in a coffee Wow and at the end of the year she took that coffee countdown to a brokerage firm and started investing in stocks that's what changed the entire destiny of my family Wow was that my grandma at 30 with no college education or he at Gimbels department store Milwaukee Wisconsin got tired of being poor there's some people watching today that are there right there listening they're watching this is her listen to us and they're tired of being poor my grandmother was frustrated and she came home and said of my grandfather on her 30th birthday Jack this is not working like and when you're the guy and you hear that you know like what do you mean this isn't working and my grandfather said what's not working and she said we're broke don't have any money and you know to my grandma's credit she decided to do something about it and says she literally brown bagged her lunch every day she brown bagged her lunch so she could save that money and go invest and the way the story turns out Lois is my grandma thought my first book smart women finished rich was dedicated to her and she can become rich overnight she built wealth over her lifetime yeah I always say it's decades not days people who try to get rich quick stay broke long mm-hmm true like show me those banner ads on how to get rich quick and I'll show you a way to stay poor forever right so my grandmother realize like you you've invest in great American companies and you just keep investing and you leave it and you leave and you leave it and she helped me buy my first stock at age seven in McDonald's Wow and that was seven years old it was like she taught me she taught me three lessons about money at seven that to this day I still teach which I can share with norsu so at seven were sitting McDonald's and she says you know David you didn't get rich of McDonald's I looked around like Grandma I'm eating my you know my cheeseburger and my french fries and I have my apple pie I said what are you talking about and she's like I'm not how am I getting a job here she's like see those people over there they're working for what's called minimum wage and I think back then minimum wage was like a dollar nothing and she said it's very hard to make a living on minimum wage she said then there's kid people like you right now like all these people are coming here and they're eating and they're spending money it's called better and she said then there's some people who own this place and owners get rich and she said you and I love to play Monopoly at seven that was my thing I go to my grandmother and she played Monopoly with me and she said I'm going to teach you how to play Monopoly for real and she took me home that day she opened up the Wall Street Journal she circled MCD that's the symbol still to this day for McDonald's and she said here's how much McDonald's is she put me in front of a television screen and said watch the ticker tape she taught me how to read that ticker tape and she said just call out the price on MCD that's the price of McDonald's and she said tomorrow I'll take you down her brokers from home will open up an account you'll you'll buy one share that stock and then every time you go there you'll know you're making money from yourself Wow that is a WoW right and it's funny cuz I'm here in LA with you but I just went to Disneyland two days ago with my son he's my son who's nine and Disneyland you bought Disney I bought is that what that was my sack that was my second stock that's amazing so like literally at nine I'm at Disney with Grandma and I'm like hey Mickey are you guys public like you know cuz she taught me to think as a child like an investor now I'm doing the same thing with my kids no my kids don't want to own McDonald's they want to own Shake Shack rights so my son owns Shake Shack right down the street brand new one right my younger son after Disneyland's like I want to own Disney his older brother owns Disney it's doubled he's like well I want home Disney my kids own Amazon so you know they're they're learning like Island now this stuff should be taught in school today this is the school right like today what we do is another way to teach people so but those are simple lessons I just gave you but that were passed to me and we just did that in a matter of minutes and like this book the latte factor everybody thinks I'm trying to take away their coffee and I'm not but there's a we'll talk about the story inside this book it's about a you know 20-something young woman who learns that she's richer than she thinks and she actually learns it from somebody who works a coffee shop Wow and one of the lessons the the person teaches her is ironically it happens in Starbucks he says to her you know the five dollars you're staying she could also be buying Starbucks stock and we have the numbers in the book over how like a thousand dollars invest in Starbucks will be worth over a quarter million dollars today went public so I always say like look if you don't want to give something up like that five dollars at Starbucks for your coffee then buy the company stock right in Destin where you spend money that's interesting if you go there every day you put five dollars a day into buying the coffee put our dollars a day into the owning the company as well and now there's so many companies that make this easy right like I'm an investor in a company called acorns fastest growing financial service company and really in America let's go over five million accounts for Millennials Wow you can open up an app on your phone and in less than 10 minutes having an account go click click click and be saving change right into a diversified portfolio and it cost like a dollar a month Wow so technology is making it all much easier for everybody with a few clicks you can be investing in stocks I just heard of what's the Robin Hood is a new one and it only costs anything to trade now on Robin Hood again one of the fastest-growing financial service companies there now have a market valuation of like 5 billion dollars less I read and they made everything free getting lots of Millennials are using Robin Hood there's so many great resources like 20 years ago this was complicated you would have come into my office at Morgan Stanley but I want paperwork if the 11 pages of paperwork to save $50 a month automatic my gosh today again you open up an app you go click click click and it's done and it's all automated right that's the going back to this idea of like you don't have to do it manually like you've got your pad of paper and I always tell people in the back of this book we've got a little sheet and track where your money goes for a day me annually but there's also a lot of great websites and apps can help you that deal yeah I love these lessons about your grandmother early on and investing in the places you're spending money out already and I think of to influencers so you say there's two things to really generate wealth and that's real estate and stocks the fastest way and we haven't done the real estate part yet right and it's funny because my friend or meet safety always says like don't give up your lattes and I know you're not saying that yeah you're not saying that he's like don't give up your lattes but invest in things you know automatically as well yeah and well in funny Canberra meet our buddies yeah yeah he's good so I go hey I'm like funny guy I know you're always making fun of my dating but it's not about the lattes it could be bottled water it could be cigarettes right you could just be eating out lunch every day right right like we put out a little meme yesterday I'm just saying like you know make you say have enough money to go on a trip but if you just made your lunch at home for the next 90 days you'd have enough money to go on a trip right like the way you get your freedom and your dreams is you buy them mm-hmm exactly you buy them you don't borrow for them you buy them but too many people do is they actually borrow for them they want to go on a trip and then they just put on the credit card yeah and then sort of that trip being a $50 trip by the time they pay interest it's a $3,000 yeah this is the Dave Ramsey model of like never putting anything on your credit card it's like so we've got the latte and we've got four stocks and we've got real estate as well and I've heard I've seen so many studies online of like the pros and cons of my real estate and for people that own real estate and they're getting checks every month from renters great but what if those renters leave and you have to fix it up and all these costs and taxes and fees and these these things that you have to pay on real estate that you're not really aware of until after the fact or some type of disaster they're like this is stressful so we got the Grant Cardone model which it says never live where your own what did you say he says rent where you live and own what you rent yeah and rent what you own or something right so it's never live where you actually own something is his model yeah but he's like you need to be in real estate and own lots of other things that you're renting out but don't own your own home that you live in because you're not paying yourself right you're not getting paid from that investment so what's your dog so so what we'll leave grant out of this I go let's just go to the core concept of I'll go back to the latte factor book what happens is I wrote this book as a parable again because like my 15 will just read this book cover to cover in two hours and ones like wow dad you know what I actually need to do this I mean Oh cup an IRA account we've got this chart that shows a young person how they save $2,000 a year at the age of 19 $2,000 here at the age of 19 June 5 till 26 yo ha 19 to 26 yes like 65 they have over a million dollars in same things it's crazy right here it's crazy I don't know if you can even show that later on a camera shop but and if you started at 27 $2,000 a year does it all the way till 65 that person so they've saved way more money right they've saved their basically their entire lifetime they end up with eight hundred and five thousand dollars they stole a lot of money rights but my 50 year old son looked at this chart and goes dad I'm 15 if I gives 15 I'll have more than a million dollars right by the way pretty smart right like yeah actually you'll have more like two million dollars or oh he's like well and then he takes his calculator on his phone and goes that's five dollars and forty-one cents a day I go exactly that's why do you watch you buy the bottled water when we are all to skiing yesterday that's why your dad had the free water and you wouldn't bought the stupid water right because that's enough money to do every day to have an IRA account he's like well then we need to do that Wow so you know these lessons are so critical so what I do with this book and I'll get to the real estate here is that I wanted to teach these core lessons that there's three secrets to financial freedom in this book which are pay yourself first first person gets pays you then that don't pay the bills first don't pay the bills first don't pay taxes first don't so most people they pay taxes first they go to work at 9:00 they work until 12 o'clock to pay taxes I mean here in California for sure yeah right then they got them from 12:30 to 1:00 it's lunchtime and then from 1:00 to 3:00 3:30 it's housing costs car cost and then from 3:30 to 5:00 it's everything else and what what most people hope through budgeting is that somehow they're gonna have a little money left over at the end of the day to say it completely wrong philosophy you carve out the first dollar day for yourself you become financially selfish so in this book Zooey Daniels who's the main character a 20-something millennial she's living paycheck to paycheck she lives in Brooklyn she's traveling to New York City on the subway she's working in the Freedom Tower she's a pub she was an editor of a Travel Magazine but she never makes no money she working she's seven hours a week exactly and what happens to her is what happens to so many young people in big cities she's making a little more money each year but she's not saving more her expenses just keep going up so six years in she's totally depressed and she goes through this building called the oculus and she sees this LCD screen there's all will it's all real place and she sees this LCD screen that's a football field long and it says on the LCD screen if you don't know where you're going you might not like where you end up and this is all underground and she takes his escalator up to her office which is the Freedom Tower and she's thinking about this and as she comes up she's by the 9/11 memorial because that's what's next to her off I know this place very well yeah and I live across the street from yes and so I walk through this every day and so she comes up and for the first time in six years she actually sits down and looks at the memorial because she's always normally just turned right and gone into her office you know she's busy she's in New Yorker walk rushing to work today she stops sits on mobile bench looks denial of morals sees people crying thinks about the people who died here and says says to herself where am I going with my life he goes into the office depressed and then proceeds to tell her boss that she's like she can't afford anything and then through the book she gets these mentors and she learns about paying herself first and the magic and the miracle compound interest he'll five to ten dollars a day could start to free her and then later in the book she learns about the importance of owning real estate because she's renting hmm and she thinks she could never own and one of the mentors Henry teaches her you know the amount of money that you're spending on rent you can make a mortgage payment mm-hmm and you could own an asset and she has critics in her life we're like Oh none of this stuff would ever work for you right it's you know you can't make 10% rates of return you know it's you don't want to own real estate but then she's surrounded by some people who are older and wealthier and wiser and they show her how to get there so when I got a home ownership which I took a way to teacher it question yeah um the bulk of wealth is built in America's built-in real estate so Brent's not wrong you should bought real estate but guess what the easiest real estate to buy it first is your own home your own home yeah or first of all it's the easiest thing to qualify for a loan for cuz you're living in it yeah so the bank will loan you money to buy a home second thing is it's tax-deductible right you get tax deductions on your interest third thing is you have to live somewhere as long as you're alive so you can own it eventually free and clear and have very low red next to nothing besides taxes and maintenance fees or you can work for the rest of your life and never have your expenses go lower mm-hmm the myth is that you want to rent because you don't want to have to pay maintenance insurance and taxes guess what they're all passed on to you right the landlord passes those fees amuses the landlord doesn't say oh you're a renter I don't want you to pay those things now the landlord pay charges you by escalating the rents I used to live in LA in 1985 to 1990 much cheaper than all the real estate here was like probably one-fifth what it is today right and so I'm at a friend's house in the Hollywood Hills she bought it in 1994 right out of out of college she did all the things you have to do to save she bought the home is a total fixer-upper I'm sitting this home overlooking all Hollywood last night but this beautiful pool that she's put in over the edge pulls I don't know what her homes worth today but I have a base worth five million Wow and I bet it's gone up three to four million since she bought it Wow and you only have to do that once in a lifetime to build a ball forever right so if you don't own real estate you don't get in the game building welp there was somebody was on CNBC their day comparing how well they actually used Brooklyn there's example which is ironic because Zoey lives in Brooklyn they said you know if you rent in Brooklyn it's $25 a month it's not by the way it's more than that but if you did if you were after 20 hours a month he said it would cost you it could cost you four thousand five hundred dollars to home and he said and you know so if you didn't do that you could save the extra two thousand dollars and you could put it in a diversified portfolio and you could make a better rate of return and I'm watching this and I'm thinking no that's wrong and here's why it's wrong I believe in the stock market I give examples of earning seven eight nine ten percent and I noticed it I know stat wise meaning like statistically the rates of return the stock market have been higher than real estate but it's misleading the reason it's misleading is if you give me a hundred thousand dollars and you put in mutual funds and I earned 10 percent my hundred thousand dollars grew to 110 folly suburbia and the next year and the next year right so but if I put $100,000 into real estate I didn't put a hundred thousand dollars in real estate I put in probably 20 thousand the bank loaned me 80 mm-hmm so when that hundred thousand dollars grows to a hundred ten I just made $10,000 profit on 20 thousand dollar investment right that's a 50% rate of return right and if I bought it as a personal residence which is what most people do first I can sell it and if I'm single I can make up to a quarter of a million dollars tax-free Wow after two years it is well it's the only thing I can buy and sell and get tax-free money if I'm perfect you have to pee you don't to pay taxes on the money from Sonia home I'm the first quarter million dollars if I'm single why the first quarter money that's deficit just that just got real all right Wow the government quarter million that first quarter million in profit in profit you don't from no tax wow that's a Saturday if if I'm Harry if I'm married what half a million Wow seriously you don't have taxes I see the hair of myself in taxes on any of that on the first house enjoy dollars this is all across the u.s. all across the u.s. so like my home and Manhattan that we just sold because now we're moving to Florence I'm not going back to New York by New York so the first the first half a million you'll pay any tax do you keep a half a million tax-free legally and I can do it over and over again so I've now done this three times that wants to attack sorry on the other prophet then you pay in long-term capital gains yeah so I had a home in San Francisco say moved to New York sold it got all that money tax-free bought my first home in New York sold it bought a bigger home in New York got that money tax-free third home of just sold got that money tax-free I can never do that in mutual funds unless it's an IRA account that's a different game again I want people to use it retirement accounts yeah and then I want them to know in real estate if you have those two vehicles you pay yourself first you save money automatically and your own real estate and by the way I'm not against I want people on rental properties to I own rental properties with my wife she's got a rental property in our building Wow but the way you get usually your first rental property you buy your first home then you rent that home out mm-hmm then you buy a second home live in that for a while monopoly monopoly in the automatic Niner I say three homes over a lifetime and you're done financially don't need to work yeah two of them you've rented out you've got rental income the third one you've paid down you have no debt and now you're in your fifties or sixties and you're not depending on Social Security yeah and those two homes should be paid off by then and then they're just paying you every month and we get people you know posting our website all the time weird woman there days ago ten years ago I had nothing and now I've got five rental homes because I did exactly talk about Wow so it's it's these are not pie-in-the-sky ideas I'm not telling people to go buy homes and flip them like I was listening to some radio ad on the way over here and I thought those are the things that don't usually work you got her one of those seminars and they're free and the next thing you know they're putting you into a thirty thousand dollar coaching program to flip homes yeah I'm just talking about basic simple stuff pay yourself first one hour day of your income don't budget save money automatically and get yourself a new piece of property and then pay the debt down so buy a home as early as you can as early as you can and the thing is when you're young what you what happens you think you're a lot of times you'll come to a place like Ellen or San Francisco like I can't afford this and you go I can't afford it so you know what you do is you buy something and then you get two or three of your friends to be the ones around they help you make mortgage payments my first home I bought was my best friend from growing up he's a complete dump it needed we needed sweat equity we put every dollar that we had into him I had less than six months of expenses set aside and I was in real I was in real estate I was in commercial real estate commission only I remember calling my dad and going you know what I don't have enough money after six months to pay mortgage payments what am I gonna do about make money and in my job he's alright well son nothing will motivate you like that yes true as I'm cold going he was right yeah and we rented bedrooms to friends to help us make mortgage crazy so do what you got to do okay do what you could do it's how you get started see that man so how much does someone put down on a home after they put as much as they can down first or should I put the minimum amount down the most important thing when you buy a home is to make sure you can afford to buy them and so whatever the bank always start with whatever the bank will loan you borrow less borrow less yeah so the bank says I'll loan you $2,000 borrow less and during those dollars because they don't really care as much as you need to care so borrow less and you think you can you know people always try to get the next level house get the house you can afford or lower your first home is rarely your dream home my mom actually cried when she came to see my first house because she couldn't she's like haha you don't know what you've done I'm like we didn't actually know what we had done there's a lot to be said for being young and stupid but we thought it would be fun to fix all this stuff up it was a lot of work but I think you want to but you want to by lessening the bank alone you I I kind of asked you know subscribe to form Buffett right like a good old fashioned without a payment 10 to 20 percent more is better because you're yeah but one thing is you need to have six months to a year worth of mortgage payment set aside I would not recommend somebody do what I did which was only have like a little window of fun right I think if you can have a year's worth of expenses set aside you're better off but here you're more prepared to buy your home mm-hmm but I will say one thing is if people think buying a home is risky so is renting right like if I buy a home I've got to pay the bank if I rent that better pay my lease if I don't pay my lease my landlord can evict me I buy a home and I don't pay my mortgage payment it's a lot harder for the bank to get me out of the home really yeah so I'm not suggesting people like fake payments what I'm suggesting is the same discipline it takes to pay rent is discipline it takes to make a mortgage payment but owning only real estate long-term especially if you're lucky enough to be a market center going up Wow now Ivan I feel like I've been doing everything I can maybe not yet because I don't own real estate but I've invested at a young age in maxing out my whole life insurance policies for the tax deferred and all those things I've I've got 401 k's Roth IRAs defined benefit plans all maxed out every year for many years I invest in my own business I invest in my personal Gannon I invest in learning new skills I invest in people my team I invest in new projects that we own assets within my business I'm investing in real estate funds I'm investing in all these things and what would you say is missing for me that that I could be doing I know I've put a lot of way every month where it's all missing you I'm like you're doing everything right right and a lot of that you just said so quickly that people don't know what you're talking about but like a defined benefit plan mm-hmm it's a single graze vehicle ever is it for a self-employed person okay who doesn't have a bunch of employees right right because you can put up to over $200,000 yeah tax deductible into that retirement vehicle now most people don't set this up until they're in their 50s Wow and a lot of people say oh you can't do this and you really want to do until your 50s because of the all these different requirements totally wrong you can go and max out a defined benefit plan for two or three or four or five years then just shut the plan down and then well if your income doesn't stay in the same then roll that into an IRA account and you can get a fortune put away tax different it's all about taxes I don't want to pay taxes if I don't have to right legally don't be smart yeah be smart but but that's what people who become wealthy do they focus on not paying taxes legally so when you put a hundred thousand or two or thousand dollars into a defined benefit plan for the last four years yeah you didn't pay taxes on that money right now critics will go oh yeah but you also pay taxes later fine I'll have my money grow for the next two three decades and I'll pay taxes later I like that yeah yeah eventually got to pay taxes on something whether grows tax-deferred or eventually when you hope when you go to take the money out of these retirement accounts you'll pay taxes on it so what I'd rather pay taxes later than now now you mentioned Roth IRA I love Roth IRA is for people who can fund them because the money you pay tax is going in but it grows tax-free forever coming out so they're both great vehicles um you know I I like insurance for the right person you don't have any but you're not married you're gonna be kids so that ironically my insurance usually insurance is designed to be a death benefit it can also be an investment vehicle which is how you're using it as a sophisticated investor yes so with everything that you just said to me and you're probably invested in privately in companies to resource so what's that doesn't make many money but those are just risky we call that the hopeful set exact pile I've not made any money over the last eight years of Ault like eight startups that I've invested in but it's you know what that's it's a hard way to get wealthy nobody really talks about that looks super sexy but usually you're putting your money and you're lucky you're lucky to see it back in ten years yeah what I would say not knowing how you organize everything because it seems to me like you're doing everything right yeah it's all about having this on a dashboard mm-hmm because it easy at all as you start to have all this stuff what happens is we're all busy and if you're not tracking everything mm-hmm that's the big thing I just started doing that like seven eight months ago because I was like I don't even know where all these accounts are they're all in different portfolios and plans and company isn't like where's all my money so whether you use you know there's all kinds of tools you can use but even just a simple spreadsheet which lays it all out so all sort of god forbid something happened to you your family would never know where everything is yeah because you know if you if you die and your family doesn't know where the stuff is what happens are they they may never get it really good because like I let's use a using the Apple of investing in a start-up okay you know god forbid something happens you tomorrow your family doesn't know that you have you have private equity in a start-up yeah they're not coming looking for you hmm you know if you have money an old 401k plan there are billions of dollars in old 401k plans that people have died that the family doesn't know it's there and it's just seeing their an unclaimed all the time this happens so having it like it's all sitting there it's all organized you know you have sister right yeah I've got two sisters and a brother Jesus or brother like somebody in your family you trust is like like here's where all the stuff is this only happens to me yeah yeah okay so have it organized and would you recommend me investing in real estate Asst see I invest in real estate funds because I'm like I don't to manage a property I don't to deal with it but I know I'm investing in real estate first of all you're renting this apartment yes happy so you can apply a place here in LA or gonna stay in LA yeah so I buy a place and then by the way I'd rent part of this like this is an office here yeah I'd have your company your LLC or you know the other thing I do I buy a condo mm-hmm in a separate and then I have your business rent the condo and pay my pay the business yeah that's legal totally interesting you still have to pay taxes somewhere on it right but the point is your business your business is paying the rent to another piece of property that you own ultimately how business owners get rich who don't do what you're doing you're doing things are the exception the most most business owners don't have defined benefit plans don't save money automatically aren't actually investing like you are give you all the credit in the world like a lot of influencers are broke yeah they I mean you know this right you sell the bling-bling a lot of cash and they spend it all they have nothing to show for it it was like pro athletes ooh it's really sad um but the I spent nine years in Morgan Stanley and what my well my clients he became wealthiest I always said they became wealthiest by accident they owned a business and they bought real estate that the business was in and 20 30 years later that building was worth millions sometimes tens of millions of dollars the business wasn't worth anything the building the asset and and then if the business is worth something and you can sell the business you can make the buyer turn around and have to do a 10-year lease with a building that you own and you're collecting rent you don't even sell the building you just stole the asset right so you should totally buy something okay it's always been like the the peace of mind and the freedom of like I don't want to deal with the logistics so I'd rather pay a premium to have freedom a peace of mind and like someone could fix this and take care of this I just want to do what I do best focus on that but I know in Downton like in this area there's no yeah it's just excite a crow know for most of my time in New York right like I don't do anything I don't know how to do anything my wife says you know you're totally useless right well we have the guy downstairs you just call him and he does it right exactly okay so there's two things that you need to be doing real estate and stocks and I have been doing index ones for everything that I've been doing because I tried doing like individual snaps and betting and guessing and I'm like clues to this stuff so I'm just like Warren Buffett model just put my money in if it grows seven and 10% a year on average or whatever just like it's not sexy that's what I've been doing is that what you're recommending as well it's a great way to go fun by the way I invest with Warren Buffett - yeah I don't use your Berkshire Hathaway okay so I invested more in Buffett I owned Berkshire Hathaway also into index lines I run a registered investment advisory firm any guys telling you that earlier I like I'm a co-founder of a firm that literally today we just went over seven billion dollars on the platforms amazing so I sit on our investment committee so I've got a lot of different things right now I've got mutual funds and ETFs index funds and individual stocks but if you're not somebody that's excited by individual stocks like you're me talking about how excited I was when I bought McDonald's yeah Disney if that doesn't excite you then put an index fund one Buffett told his wife when I die take the money and put it in this Vanguard index fund that was that was his advice to her and like you know what cuz you can't really go wrong owning an index fund if you don't want to spend a lot of time on it I think the real key to managing money is diversification you shouldn't have all your money in the S&P 500 it shouldn't be all stocks even though I say you need to own stocks and real estate I own bonds mm-hmm I've got a diversified portfolio our clients have diversified because I actually machine to get the return that you just said earlier my goal for my money because someone between seven eight nine percent annually and the reason that is is that I'm not looking for home runs mm-hmm I'm looking at double my money every ten years there's a rule called the rule 72 it's a great formula to learn the rule of 72 you take the number 72 you divide it by the rate of return churning and I will tell you how long it takes double your money mmm so if you're getting seven percent or ten percent rate of return you divide that by step two and it'll give you the number so 72 divided by seven gonna come out right to like ten years 72 divided by ten gonna come out right at seven years so that's double your money so tell us yeah if you're in a bank account earning 1% you're gonna double your money in 72 years yeah so get your money out of a bank account savings account always only your emergency money should be in a bank account and even then it needs to be at least oriented a two percent right there's all kinds of online savings of a products today that are earning 2% and so don't be earning zero that's a typical bank account how much did you have in what's an emergency fund you know it's like if you got a lot of cash how much did you have in savings checking and then the rest and stocks were real estate okay so if you and I are having this conversation nobody there watching right now right like I'd say I'd say well I would say to you Luis how much money do you need to have terms of expenses set aside to feel safe to sleep well for how long expenses from just in general for like six months or something or well I'm so I was I would ask you personally what's that what's the amount of money probably a hundred grand well wouldn't you know it's a dollar well I'm even using after you like in terms of how much months how many mine yeah six six months or something yeah maybe I don't know okay so so so that's your answer so for you and then I'd probably are you sure it's six months I would probably go like if I was your advisor I felt like but your body like maybe I've learned that I'm like if I lost everything and this is all I had left of a thing see everybody's different in terms of how they sleep at night like for me I want two years of expenses since I - I sleep better peace of mind peace of most Americans don't even have three months of expenses set aside in fact what led me to write the latte factor was about three years ago the Federal Reserve kemo can send it for four out of ten Americans can't get their hands on four hundred dollars in case of an emergency six out of ten Americans can't get their hands on $1,000 in case of emergency seven out of ten are living paycheck to paycheck they're men an eight out of ten women are living paycheck to pay Wow so when I say all I need two years that's really extreme right like I would love to get the average American to get $1,000 in savings which by the way if you just save 10 bucks a day in a hundred days you've got more than six out of ten Americans so when I go back to the latte factor metaphor I'm like you know what yes 5 10 15 20 dollars a day can change your life because in a hundred days you could have more money than the average person walking down the street hmm and 40 years you're a million it you got a million bucks and again people go all over four years million dollars won't be worth a lot guess what we're nothing million dollars more than zero exactly which is what the average American is working towards and you know it's thinking about one other thing on the way over here cuz I get things get me fired up like the dumbest thing Americans spend money on our new cars hmm so when you borrow money you borrow money to buy assets they can go up in value like a home you don't borrow money to buy assets that go down in value like a car so the average American buys a new car constantly I like the car industry just started on CNBC yesterday saying that the car industry is getting nervous that people are gonna buy less cars good people should buy less cars Millennials are starting to use uber everywhere my kid does even one driver's license the average Americans car payment right now for a new car is 533 dollars crazy a month when you factor in insurance and god forbid you have to pay for gas thousand bucks a month alone it's almost a thousand bucks a month and the average American is spending three months a year to make their car payment and when you think about it that way and you're buying an asset that goes down in value the moment you drive it off a lot by 20 30 40 percent it's just the wrong place to put your money but we're marketed to the to get the new lifestyle lifestyle the new hot car the new special thing and we're basically trapped by marketing we're trapped by you know when you succeeded you should have this and so we've done for a lot of young people is we've gotten them and we haven't talked about student loans yeah but like you know Zoe Daniels has got student loans in this book and hunter grant three undergrads ever it is we're trapping an entire generation to generations now with student debt that they'll never build pay off and it's it's sad because if you go to college and you're first of all you don't even know better right and you take out $100,000 in student loans it could take you 20 years to fail as long as off if you're lucky and you can't walk away from those student loans literally the laws are set up that you can't get away for student loans it's the only thing in life that you can't get away from through a bankruptcy it's just two months that's because the government got in this to loan business they should have never been sooner own business I went to school right down the street USC that was a super expensive school to go to when I was going there back in 1980 flat today it's a fortune like that the grand a year yeah right and I just go you know how do you afford it to pay that off it's just so hard and I think you know I would tell anybody doing today don't don't get trapped by these debts like go to junior college for two years yeah actually like funny funny inexpensive way to go junior college translate school go state school transfer into the school you want to ultimately be out when you're a junior or senior taking on as little debt as possible we're just not preparing people properly to realize how we're not we're not explaining correctly that these are handcuffs and so people are getting out of school with these handcuffs that are on a year or two long that's what it used to be it's now decades long so I don't know I mean I guess unless you can learn how to build wealth faster you're not gonna pay that off you're not gonna pay it off I mean imagine if you know I had an online course and we said it's a hundred thousand dollars to join we have absolutely no way to guarantee that you'll ever make money from it we're not even sure will improve your life but it's but by the way we know you don't have a hundred rounds so borrow it and then in this massive interest we would go to jail right like like literally like that but that's what the university systems are like so I'm not against college I want my kids go to college I just don't want people to get these deaths it's crazy it's interesting my dad never bought new cars he would have like ten year old cars we had a 1989 Oldsmobile David the Oldsmobiles is out of business now but we drive he would drive that thing he would he would run his business and drive that thing and he would just save his money and invested and the challenging thing is you know I look at my mom now she's gonna be 68 this year she went through divorce some 20 years ago with my dad and she bought some real estate properties and made some money renting him out but she had a lot of expenses of her own and she would even have a lot of savings right she had the money to live off of from the divorce she was working to pay for stuff and I look at it now she you know she's gonna have her what is it Social Security that she can take out now or if she waits a couple years it's a little more money to get out and then she's got a retirement from working at the company she's got a plan yeah yeah but they're both like what one's like a thousand bucks a month ones maybe 800 at 1,200 a month it's $2,000 a month and she just moved to LA she's got a little apartment down the street that doesn't pay rent for the rest of your life right you got two thousand three thousand bucks a month doesn't even pay that much challenges it's like what do you do then you know it's like then you can't save anything you don't want to go keep working you know he's working part time at that age maybe it's this is why like 80% of poverty-stricken elderly or women Wow what you just described is the single biggest financial Channel this is what women face that when I wrote smart women finished rich it was because I saw all these women being her financially yeah they had gone through divorce they had gone through widowhood 80% of women died died widowed 80% of men died married so what happens in the real world in marriages is that a lot of times the wife has delegated the financial well-being to the husband and he's not educated that he hasn't learned I tell like in this book Zoe Daniel is basically the mentor says her prince charming is not coming you need to be your own Prince Charming and in this book the mentor who's a who's also I don't want to give it all away but like one of her mentors at work turns out to be extremely wealthy and doesn't shed no idea and she says to Zoe you need to be in charge your finances I don't care who you marry local bank president has a woman you have to take charge of your financial life because what you don't want to do is turn I mean I hate sales like Ramon you don't want to turn around 68 and figure this out because it's 68 you like you just said she doesn't wanna work anymore a lot of people are having to work in their 60s because they'll have enough money yeah and unless they have family that can support them and pay for them but you can't do you put your eye on that is for everyone he knows she's got me didn't put your mom on the payroll she's got she is she is trust me so she's I mean she's fine yeah but it's like if she didn't have me or someone in the family Helene help out it's like then what no I mean and I don't know blaming or anything she did what she could she saved her money in the best way she had retired man she you know she's still working yeah it's like it's still not that much money you know how much money when you know I would go back to when you know better you can do better right like this little book which I hope will go worldwide I was inspired to write it by Paulo Coelho yeah he's great he's my hero as far as a writer goes and he's great and I went to Geneva to meet him and have dinner with I want to meet him someday you know I'm gonna write you British shitty Brennan his brother and I went over to have dinner with my wife cuz you're gonna go to Geneva have dinner with Coelho Paulo Coelho you wrote The Alchemist they go subscribe all time she goes you're never to dinner now I mean go Jean from dinner I go yeah yes I am and right this is also the importance like you know when you get a chance to be in front of somebody that you respect admire and want learn from yeah you cannot play any go so we go out we close this restaurant down Paulo quail is amazing we go to have drinks and we basically stay out Paul likes to stay out so we're I'm like I'm staying out Paul's latest ball want to say I don't know two or three in the morning his handlers like okay we gotta get going he says and he says um let me ask you a question David before before I leave like what's the book that you haven't written yet that your soul desires - right right right followed by an egg and I go Paul I want to write this book like you've written like a parable and we're a little story that will inspire people to realize that they're richer than they think that they have more strength than they now and then the dreams can still come true I don't want to package up these financial lessons and a little story that anyone can read they'll transfer all the world and he goes you must write this book like What did he say so we're leaving this reference no pitch black out we're totally buzzed and I'm like she said I should write the book right so I'm like literally on cloud nine and I get home and I go you know I get home I'm all jet lag first thing my wife relation says so what a palo say i go he said i should write the book and she goes a lot of telling you do this for 10 years and i go ahead but it's Paula okay that was the end of 2012 I've been one news book for 14 years and finally I partner with John Mandarin it's great book to go giver and said let's let's try read this parable but let's write it until it's perfect and then we'll sell it it's the first time I ever wrote a book without a deadline Wow you know I just I spent two years working on it now we spent a year getting ready to market it so look I thank you for having me out because you've such a big community I hope we'll reach some people and you know I got a plan to come see you because you've done with my favorite podcast little world operation super cool to be with you I appreciate it whoa Rico when you turn to me and say hey man let's have you on the podcast I'm like okay I'm gonna play and come see ya I appreciate you coming out make sure you guys get the latte factor I've got a few questions left for David make sure you get this super short you can get this and read in a couple hours even I can read this quickly and it's super inspiring plus it gives you a lot of practical things you can do at the end or they manage your money what are three steps people should do right now whether they get this book or not yeah they can start doing today that it's like if you did these three things right now it could help you set you up for financial freedom later so number one thing make a decision today to become financially selfish okay and here's what I mean by that make a decision today become financially selfish decide today to pay yourself first so like if you were gonna have like little Chiron's it would be like your first thing is becoming financially selfish pay yourself first the formula to paying yourself first is one hour day of your income if we could get everyone watching to make it a goal to save one hour gathering them whatever they're earning an hour yeah you'll be learning minimum wage literally like you get $15 an hour job if you could save fifteen hours a day $15 a day yeah $15 a day your first hour day of your income your whole especially your 20s you'd have funny actual security by the time you reach retirement say 15 bucks a day for seven years well seven years I mean like I'll go back to charts right cuz that's not it's always the compound interest over decades right so if you look at like I've got these great charts back here like glitches use $15 a day in 30 years at 10% houses bits 1 million $17,000 so $15 for 30 years yeah in 40 years it's I got my glasses on 2.8 million Wow in 10 years is 92 thousand dollars still a lot by the way it doesn't seem like a long years are saving something but here's the thing these decades go by like this that's automatic you know what to think about it he didn't think about so I would say if you 401k plan just from this podcast go sign up for it and save one hour day of your income happens to be the math on that is twelve and a half percent of your gross income with your company's match which you probably will have you'll be saving 16 percent of your income which is like four times what the average Americans foods huge if you don't have for 1k playing open up an IRA account fund that or if you're self-employed do a SEP IRA second thing I would say is just pay your felt so first on our idea when I already have your income yeah second thing I would say is track where your money is going but don't budget so I would download an app and like what are a couple days so I would use like an app that I was an investor and we sold the company to goldman sachs it's called clarity money clarity money is my favorite app you can it's it's like mint.com on steroids but mints good to know um the same as betterment similar stuff better means for investing gotcha so little dashboard it's a manage it you hook up a thing like clarity money and in minutes you'll see where all your money is being spent you can put your credit cards in there right so one of the great features of a app like clarity money is that it'll show you not just where you're spending money but it'll show you where you're spending where you're spending money automatically monthly on all your all your subscription fees so you can start canceling a lot yeah there's a cancellation buddy show in the app so what happens is I call this to piss you off factor oh my god you're like I've been spreading this one for years you look you also you don't realize it right cuz always goes we didn't used to have all these subscription services oh so when they're summarized in your phone you got 30 of them and you're like wow I'm spending three four or five hours in these and I'm not using a lot of this stuff and then there's a little but that these companies hate this right because we were talking about how people sign up for things and then sign up but you go click and then you want to sign up well you take a typical $50 a month box that's being sent to you right like your buddy's trying to send you these boxes and stuff and you turn that off that's $600 a year it's not a few dollars a month it's 600 ollars a year fastest way to change your life on eh let's get rid of some of these fixed expenses so the way to do it use an app like clarity money well calm then I would go back to this idea of saving money automatically right because besides your 401k plan there's other ways other things to save for like your dreams like I want to go take a trip I want to start my business I want you know a lot of people didn't want to get married I want to do that whatever it is whatever it is so I would use another app like an acorns hey corn hey Cory it's AC o RN k course calm and there's nothing I'll give you multiple ones so because acorns I'm also an investor okay yeah so but I got invested in acorns three years ago in Hood Robin acorns Robin Hood stash you talked about betterment these are some of the bigger players and automated investing but but for one of them cosign for one of them companies like acorns or Robin hers - maybe so you can put very small amounts of money away put fifteen bustable pick a number whoever you want cuz everybody's different right yeah but come up with something you're gonna see a lot of Mac on a bus a month - in a bus a month automatically that comes out of mine in the book Zoey Daniels Henry her one of her mentors sister Zoe you know how you get your dreams you buy them so like having a dream without a payment plan is a wish having a dream where you're saving forward automatically that's how it becomes real yeah like in her case she wants to take a sabbatical and she wants to travel she's a travel editor who's never traveled and he teaches her how to like save for this break and then later of the story I'd only give it away but she like starts to take these trips well she got there because she saved for him mmm then I just had him magically he's having that he's just like unfold your people that thing is you've such a great audience and people come here because they want because they're great and they want to get greater right it's a school greatness and someone said to me I'll show you is there ever a point in which you feel like you don't need to grow any more right and I'm like no right because what got us to where we are is we're curious and work robbers like you know weird this mastermind again or noriko right I mean everybody is usually successful with that mastermind and we were all there to grow we were all there with our journals taking notes on every single word everybody saying because we're still learning so there there's no finish line life I think that's a big thing that I try to convey in this book is that it's about living rich yeah but there's no finish line right so whatever age you're out right now your mom is 68 forget that money for a second I'd be talking your mom about what is she excited about because the prom at 68 is that people get depressed and like your mom at 68 the next 10 years the most important her life there are gonna be the healthiest of her life between 68 and 70 H she's not getting healthier from 78 to 88 so I'd be sitting with your mom and being like mom what do you want to do next three years you haven't done yet let's work on a dream plan for you I had this guy david Bach on the show and I came home and thought you know if anything that you're not doing that you want to do like is there any way you want to go you haven't gone here we can start planning for 94 go take a trip with your mom my mom my mom told me if she wanted to go on a safari my mom's health also getting worse cuz she's 70 yeah my dad's 70 she's 76 when her dream trip was a safari which we went on last and I'm like well the mom let's go hey cuz like we don't go now I don't know when we're going so yeah yeah it's good advice what's missing in your life right now probably at the very moment cuz I'm on tour hahaha is my root is sleeping my routine and exercise but you know I actually have a lot of routines and one of those people gets up very early meditates because my positive focus normally exercises what I'm living a pretty bleep plus life right yeah and also I know like when you put out a book look I'll do a hundred podcasts and I'll be on the road for two months almost we're doing a nationwide tour with this book but then I'll be done right I mean you do all this work you only get the message out you've got to go do the work there's a finish line it's official and then I'm gonna go to Florence Italy it's been a year and like you pasta and drink one and hang out friends when you come visit me it's so amazing you got a guest room for me you know what I will find again otherwise like don't you guys seriously come out to ports although today I could be your girlfriend yeah so love to you know I I the reason I'm taking you here to go to Florence right now even though I'm Brooklyn co-founder for big business and all of other other businesses I've got a 15 year old son it's gonna be a sophomore and what's about to be missing in my life is this kid's gonna go to college in three years so because I want to live my home the principles I teach I want to live them I said to my wife you know what the last year I can take this kid abroad as a family is his sophomore year mmm so let's go live abroad for a year and let's take the kids to go see the world and let's have them learn another language a lot of work to go pull this all off but we're almost there like we're leaving in 92 days crazy crazy and it's like you know it's it's exciting so I feel blessed that we've been able to do it but we didn't just snap her fingers and do this it was like a two-year plan and I and I just say that to anybody to like when you see the greatness right I like this incredible wall over here all these people have done so many amazing things they worked on her for years most people by the time they end up on the school of greatness podcast they've been doing it for decades or longer right like I used to always joke like yeah yeah it was easy I was a 15 year overnight success story stuff takes a long you were kind of an hour but you really weren't really how many years did you work before you were like oh my god people know who I yeah that's probably about ten years yeah I close to ten years but working hard I mean depends on the industry I was E and I was playing a sport for my whole life mastering myself and a craft to be great as an athlete then transitioned 2007 got injured playing professional football so now it's 2019 it's twelve year old years yeah it wasn't really until a couple years ago two years ago I got an L in and that was like kind of helped expand it more and more yeah exactly so you know I wrote it the New York Times bestseller about ten years after the fact I started in the business I took around time it was easy right and this is you know six or six years now but it's like three times a week every week for six years almost you know almost 800 episodes it's every day showing up and not every day is fun you know you go through weeks and months and years we're like you know it started as one episode and one listener and you're like I know is anyone gonna listen to this and the one most was your mom right exactly and then it's like and then he gets to listen and she tells a friend you're not on the list either right actly so and I never I didn't know what I was doing I didn't have any skills as an interviewer or doing a show or no clue I'd want to have conversations with smart people and share the the wisdom yeah and so I'm curious for you what's what's the best money advice you've ever heard if you give one piece of advice you ever heard you've heard from all of them it's it's a funny phrase but it's called benign neglect and it was given to me by somebody used to run Twitter and they said to me um because I used to ask this question a lot too young but I'm the young person I would have I would be ever and always incredibly successful people their sixties and seventies and I asked that question and he said benign and neglect I said what do you mean he's like by quality investments and leave them alone mm-hmm he's like I can't tell you how many things that sold over my lifetime that went higher oh by quality investments to buy quality and leave it alone I was like huh okay the host super powerful the second I'll give you two the second thing was I came in funny as a service industry and I had all these successful finance firms who would I asked for mentorships you know tell me what tell me what you learned after being a business for 30 years and these finance fighters would say to me if you invest for yourself the way you invest your clients you'll be extraordinarily wealthy he said the problem and they were all joking they like the problem is when we got we think we went when you're in the business of managing money you think you're so smart that you take a risk with your own money that you wouldn't take for a client mmm if we didn't talk about the issue being a petitioner but like when you're a fiduciary of this massive responsibility you can't not with the clients interest first and but a lot of people when they become wealthier and more sophisticated and the income starts to roll and you start to take these you take additional risk with your money mmm-hmm and so keeping with keeping it simple behind quality leaving it alone not going off and doing a bunch of crazy rides trying to get rid startup so you have to give Explo up a thousand times your cryptocurrency yeah my friend all this stuff that lost oh I'm fine I'm like look Leia never split a lot of in this I just like play with their with a little bit I'm like okay I'm willing to lose 50 grand or 20 grand but then you're like what was I thinking I'll try to use that money and put it in here so I'll give you one more nugget which is people call it play money yeah like oh I put my play money in a bitcoin my play money into this cryptocurrency and I go you know did you play to make that money and they go what do you mean like did you play like did you go outside and kick a ball and so we gave you money to like so that you could then go invest it because if you didn't then it's called work money never refer to your money as play money no interesting it's work money you you just talked about you did three podcasts a week you works for your money and then we turn it over to somebody else to go and play with it and it goes away right like you one thing you said earlier in the show is that you invested into you mm-hmm which is by the way why you've been so successful you have one of the greatest websites when the greatest quality podcast you you put money into your brand your business invested into smart right nobody cares about your brand more than you do the next thing you know you see a great idea then I go here's 50 grand well it doesn't matter until it doesn't come back and then you do ten of those and you're like believe me we've all been there you have so many friends we talk about this now because we're like we've all put money into 10 or 15 or 20 of these deals then you go 50 grand a pop it's a million dollars and now it just didn't come back right like and then we all hope will gonna come back right and make all our money back yeah he pull it out so you know I would have just rather been in an index fund it's liquid I could sell it tomorrow or about one more condo mm-hmm so yeah this is called the three truce I asked it at the end um imagine it's your last day on earth as long as you want to live but at some point you have to die it could be 200 years from now right and you've written you know multiple more books you've done everything you want to do you've lived your dreams you've seen your kids do what they want to do grandkids whatever you want you've created it but it's time to go and everything you've accreted you gotta take with you your work your messages your videos audios virtual reality what didn't you created by then it's gonna go with you okay but you get to leave behind a piece of paper and you can write down three things you know to be true about all the lessons you've learned in your life Wow and this would be kind of your Commandments to the world and this is all they would have to remember you by it can be on anything but your greatest lessons what would be your three truths to the world okay now now that's it's deep and I'm thinking about my kids right because ironically I just I've been working on a book of life lessons for them which may just be just for them my first truth would be to love fully don't hold back on love mm-hmm you know like we've all been there when work it's like you know you go to book about being I'm gonna blink on your master master that's what I mean yeah yeah but like you know a lot of times were specially guys let me vulnerable you know like we're sometimes like when you're young you're afraid to make you might be in Lois I might be afraid to tell him and oh man I'm I want me don't be afraid to tell somebody love ya love fully love fully in the relationships that you're in you know I was unfortunate last week in a hospital of my wife mm-hmm thinking that she's having a stroke and had eight doctors around her to the emergency room Wow and I'm like wait a minute we're going to Italy like in 94 days she can't be having a stroke like this is how life works and then she had to go have an MRI and I'm waiting in the waiting room for hours says Wednesday and I'm like oh my god like my whole life has just changed her life is potential to change my old life is changed that's how life is and I started thinking about our last 11 years together and it's amazing because I told my wife I loved her and wanted to marry her and I have I told you this hacks Infirmary guy told her I loved her water mirror and have children with her before I kissed her Wow which is insane but it was crazy and you know we've had an amazing 11 years together and I had not fully done that in the past and I was like this is the girl I got a lovefool I like gotta not hold back but sitting in the emergency room I was like okay what have we been focused on that doesn't really matter like I got to keep going back to like it's the love love fully Wow so that would be number one powerful and is she doing okay she is doing okay what she came out with a complete clean bill of health and I think it was stress-related oh my gosh yeah changing your whole life around you know he just gotten back from Florence we just got our lease signed and this is a lot of stress um because I'm weak sometimes going through dreams of stressful um the second thing I would say it's actually the core of this block Roenick lay my ground the very back of this book is a lesson for my grandmother and my grandma's shared on her deathbed Wow at age six my grandmother had a stroke and I didn't know she was gonna die and I was finishing smart woman finish rich and I asked my grandmother because she knew I was dedicating the book to her I said grandma do you have any regrets in life and she proceeded to go through her regrets going back to being a teenager and she went through five of them oh my god and in those regrets she said it's not about the individual thing she goes my regrets were I came to a fork in the road and there was one row that had more risk which is where all the gold was at the end of the road it was what I really wanted to do and then there was a safe route she said it every regret I took the safe road Wow and she's like I know and she's like I'm sitting here not eating six and she said I mean I'm I'm gonna die and I'm not gonna Lee but I was like no grandma I'm getting married in 90 days you're totally getting out of here coming to the wedding she's like no I'm not and she said to me I'm here to tell you that you're young I was in my 20s she said if I can give you one last lesson in gift and she's looking you should share with other people I do a lot from stage I said she said tell people when they get to a fork in the road but there's gonna be the little boy or little girl inside of them wanting to take the risk like you're gonna get to these Forks throughout there's maybe a little one Saudi that wants to go take this risk and then there's gonna be a big boy inside of you who doesn't and she's like let listen to the little boy mmm let him come out and play so that you don't turn around 86 and wonder what you should have done with your life so that's one lesson number two which is like listen to your little boy little girl and and it's hard to take the extra risk in life but I'll go back again to my wife I'm sitting in the emergency room last Wednesday at Presbyterian Hospital and I'm thinking myself God willing she's okay this is why we're going to Florence this is why we're taking a year moving abroad because I'm 52 and maybe I'll live 54 more years but who knows what can happen so we're gonna take the risk and go live the life now which is all about living rich and yeah and then the third thing I would say this is probably the hardest one which is forgive the people you're mad at yeah that's so true and if you need to say you're sorry I just say you're sorry and I and I and there's so many things below that but like right now someone everybody who watches this for most parts or somebody in your life that you're not talking to you had a falling out and it hurts you still like it could have been ten years ago a lot of times it's family which is the saddest thing and people typically wait until the person's dying if there's a deathbed part of it where they show up at the hospital and trying to say I'm sorry or I love you and they've lost out on the 10 20 30 years of lifetime together I saw this as a financial advisory the thing that was insane to me being a financial adviser because you get to know clients better than that therapist knows them it's how many grants we had that weren't talking to their kids like all this money they've had falling out with the children and what the children don't speak to each other way more often than not and we would try to help these clients make up you know I'd say in meetings are you sure you can't have a conversation like you haven't seen your grandkids in five years are you sure how about you just reach out to them look and realize I'm going to have both generations in the counsel macaca call them right now like I just saw them last week your grandkids are gorgeous and when people get stubborn or they're afraid to see their side or there's just and then what happens is the person gets sick then they then it's like a hospital dad's dying so I would just say forgive and say you're sorry and if you're not gonna actually bring this person back into your life then figure out a way to forgive them on your own mm-hmm so that the pain that it's causing you can go away because if we hold on to that resentment that pain eats at us that's where disease comes from I hear we could do a whole segment health but my god that's where the pain of life comes from and that's why a lot of people get sick and die because because there's a spot that they're holding on to it they're so angry with somebody that did them wrong and you know we've had told you said you had Tony Robbins on the show three times he doesn't have an amazing thing and one of his seminars where he you get you to take that thing that you're so angry about and turn into like how did that help you yeah and it reframes you right I mean know what happened before yeah Dean and I were together you just get Dean here - yeah Dean and I were together at a Tony Robbins event and we both had our journals we were writing out whatever it was and because everybody's got this right and then we wrote our whole big thing I like well this is what I gained from it like there's always something positive that can come from the pain but if you keep holding that person or that business or that thing inside of you and you don't let it go then the person who said who you you're making yourself continue to suffer yeah yeah it's like drinking poison and trying to it's like trying to poison someone else but you're drinking the poison yeah you're mad at someone but you're feeling the pain I like these last three questions voilá yeah this is gonna be the theme of your next book so I'm setting you up for getting you ready David make sure you guys get this book this is really gonna be powerful get it for your your your friends get it for your kids get it for your parents super quick read the latte factor y-you don't have to be rich to live rich we've also got on our website we got a website for the book like obviously but it's called the latte factor calm and we've got I don't know when you're gonna air this but we have a bunch of bonus on there so when you buy the book off our website our classic we did with create alive because you've done a crossword chase we've got an 18 video class called starlit finish rich that's free when you buy the book from us and you send us your receipt you get that you get that course so we've got like two daughters of bonuses on that website a latte factor calm people are loving the book yeah and so I just thank you for having me excited man I wanna before I ask the final question leave Knology David for for showing up with a lot of energy in your life at 52 Thank You 52 right yeah you've got a lot you've got a childlike joy inside of you that radiates and the fact that you keep showing up and creating meaningful you don't have to be writing these books you don't have to keep serving people to help them heal the pain and the stress anxiety of finances but you're doing it in such a powerful way and you're being innovative to reach it different people in different ways that will resonate for them I think so I really acknowledge you for taking the time to go on a two-month book tour even when your wife is going through some health challenges and they just show up to serve people I think that's the greatest thing you can do so I appreciate that thank you appreciate you man final question is what's your definition of greatness ooh so I believe I believe in God I'm living a higher power and I believe that everybody is given god-given gifts we're all given it whoever your God is right like we're given these gifts and they're inside of us and the most importantly we have to do all we're on this planet is to listen to what those gifts are and then go you to use them like bringing the gift out and so I think greatness is listening to your soul well truly listen your soul not your head and going okay I was giving this gift I know I wanted to go do this but it's so scary getting that gift out into the world whatever it is it could be the gift of being a mom could be the gift of being a good dad like we're all given these gifts but when I think about why I've done what I've done for 26 years I think what my gift was I was giving this talent trying to free people financially to actually use their god-given gifts it's actually not about the latte it's not about the million dollars it's not about the real estate it's about the financial freedom to use your god-given gifts and I think what happens is we become trapped financially when I tell you that six or seven or eight people have them in America are living paycheck to paycheck I don't have a Tim it's very hard to hear your soul and hear a higher power if you're worried about money every day and how are you paying the bills mm-hm and so I think the way you get your greatness is you free yourself but you gotta listen mmm kind of gonna sing to your soul and we do a lot to not listen right some of us are working working working working to not let someone so drinking technology taking drugs to knowlet's some of us are cheating on our spouses to knowledge like you gotta listen your soul and if you don't listen your soul the thing about the soul conversation is that it doesn't go away times coming it's just like it's this weird thing and I go that's cuz it's a higher power that said I gave you this listen you're not listening to it and so that's the people are like a lot of times we look farther there was six years old okay fine right like so I think I think greatness is listening to your soul consciously as much as you can throughout your life making space for that that's right do a Bock my man thank you thank you we should really appreciate you thank you there's awesome you

Channel: Lewis Howes

Views: 245,172

Rating: 4.902791 out of 5

Keywords: lewishowes, the school of greatness, podcast, 2019, interview, tony robbins, sucess, money, business, millionaire, secrets, how to, trent shelton, relationships, rehab time, motovation, lewis howes, nfl, relationship, your life it not over, friendship, know your worth, your heart will heal, are they really your friends, loyalty, Rehab, mel robbins, oprah, ellen, motivation, success, david bach

Id: ZUObyxtHO50

Length: 76min 18sec (4578 seconds)

Published: Wed May 01 2019