How To Become A Millionaire In ONE Year ft. @Ryan Daniel Moran / Garrett Gunderson

all right so i've already done this interview and i it's the same day i'm just doing the intro now but it's ryan rand the owner of capitalism.com we spoke on stage years ago at this conference and then i've spoken at his events a couple of times and gone out to lunch and we actually hung out at burning man and uh there's two sober dudes pontificating on the philosophies of life nerdy i know totally but uh we just dove right into some pretty cool conversation about you know what's going on in the economy how to prepare for things but really looking at all the positivity that occurs and how you can profit and be positive about this and what binds us and connects all of us and what the misinformation is that misleads people and just really practical steps combined with plenty of philosophy so enjoy money could be complicated let a nerd help you we're here to demystify the complex nature of money by getting you answers from financial nerds and whiz kids welcome to ask the money nerds a weekly segment of the wealthbox podcast where we answer your most pressing money questions i want the podcast to start with all right let's talk about money and jesus here for a second okay so so you were you made this comment that about how so many people view money as the root of all evil right and so you know i don't know if you know this about me i went to school to be a pastor so that passage in scripture is mistranslated right be because because it's part of the sentence for one thing well yeah well i mean first of all the exact sentence is that the love of money is the root of all kinds of evil it's often repeated as money is the root of evil which is not the whole sentence but but actually the original translation is like the word love is more like obsession the obsession with money is the root of all kinds of evil and what is obsession obsession is focusing on what you do not have that is obsession so it's actually the lack of money the obsession with your lack of money what what translating english as love is the root of all kinds of evil so what would that look like it would look like stealing it would look like lying it would look like trickery it would look like thievery that's what that sentence is about it is the lack of money is the root of all kinds of evil boom we're done capitalism for all the win great podcast today garrett dude but isn't it amazing how people are confused about this and if they're confused about it even if it's subtle or subconscious think of the irony i want more money but i think it's bad i want to be a good person but if i have more money will i be a good person what will people it's like all of this confused dilemma judgment all because of misinformation what i find is that we discover misinformation when there's a dilemma the dilemma is i'm damned if i do doubt if i don't which means you're in a myth that means there's a lie that you've been believing that's that premise or philosophy so essentially you have a lot of people that put money above all else because of their obsession with it and therefore they don't choose to be kind to other people or they look to take more than they give but when i look at money like i was just about to tell you before we hit record i took my two sons um on as a wilderness survival trip so i told them we're going camping and then their mom broke into them that it was more surprising there were tears the first night like dad isn't camping playing cards and talking at the fire why are we learning to forage off the land why are they talking about hypothermia what do you mean and what i got what i learned most from that is five days of living off the land where my money meant nothing is so hard bro like it's amazing how efficient the tool money is and what i can buy with that because i can leverage my skills and utilize other skills so i don't have to be good at a bunch of things but not great at anything and dude i think that if for every american if we just had to go live in the woods for five days we would stop being being complainers life would just be like okay i've got it a lot better than i thought yeah well one of one of my favorite stories uh from our friendship was we've we've been to burning man together yeah and you've kind of been a burning man you were like in burning man but like like where am i you were very much like what did i get myself into what are you talking about i go to burning man every year really you were wearing like that you're just like wearing a t-shirt and crease okay all right so back up so first of all garrett and ryan garrett and ryan are the two sober people at burning man right and um no i don't dress up and people make like i'm the one person who doesn't dress that's my costume i dress up as a normal person i go comfortably you have your lululemon shirt out or something you know so we've been to burning man together so much that day dude this is what happened so you just said that that that money is the tool really to sustain work and service to one another and new opportunities for us to pursue and at burning man it's it's another example of where there is no marketplace there's no spending of money and it works because it's six days long days yes right and there's sons of entitlement underneath that so much entitlement yeah yeah so there is there was somebody who came up to me and they found out that i run capitalism.com and we had a very pleasant commerce a very respectful conversation but this person said i think we can do better than capitalism and i was like oh tell me more and he said well just look around us i mean there's nothing being traded or bought and sold here and it seems to to get along just fine and i said you know that's an interesting point let me ask you a question what's the one thing that is provided for us as a socialized thing what is the one thing that gets provided for uh by burning man and he said well the toilets of course and i said have you been in there lately when was the last time you cleaned them and he said i now see your point right it goes with the sheepy so she can stand to pee with the sheepy device though because they're so disgusting yeah so i mean i like to say the purpose of money is to sustain service to one another and when you're out in the wilderness services food or hunting on your behalf when you're in the desert it's a clean toilet or a glass of water things that aren't available to you like that is the purpose of capitalism that's the purpose of money and when you understand that you can go into service based mode which is creation mode which is where you get fabulously rich so i love it you said it so well if we look at dollars i'll say that money is a representation of a moment it's a snapshot in time it represents value but it's not why we're valuable and it doesn't dictate what our potential is or what we're capable of doing but it does tell us what we can utilize with other people that they choose to freely opt into and so you know sometimes people confuse their self-worth and their net worth the reality is that money is a byproduct of value creation and as we create more value it means that we have to take care of ourselves but then as we take care of others we actually get paid for that some people skip the step of taking care of themselves or they think they're just taking from others and that's where capitalism gets a bad rap when people think capitalism is about taking not creating and you know and that's but there's no system that takes more than communism and also stifles creativity stifles ability and has this great lie that people somehow are just going to wake up and be provided for if you wake up and you're provided for with ever with never doing anything it means either a you're part of the lucky sperm club congratulations right or b it means it was on the back of another human being that didn't choose it but was forced into it so we say hey we want this human right provided for us of health care that's a human right well who's providing it first off and is it now that they have to be a slave to providing for your health care because you've chosen it as a right instead of as a privilege right and this is where it gets mucky and look i get it sometimes people have this bleeding heart because we all should care about one another that's the key to make this thing work but when we force that upon someone and we force them to care and force them to do that is their thieves essentially yeah and what happens when you try to compel a doctor or health care provider to perform a service you get less willingness to perform a service and so you have less providers and what happens when you have less providers the cost goes up so the worst thing that we could do to make the costs go down is to make it quote free to mandate it through government you actually get the opposite result garrett have you found a way to talk about the idea of the pie getting bigger rather than there being a fixed amount have you found language for this because i struggle with this when talking about it on capitalism i was just telling you i'm working on this play and one of the early scenes when the very early scenes i go uh i go uh money and resources are not the same thing even okay so um but let me go back to that part of the play where i go all right i'm just gonna read it because i'm where i'm coming into it but yeah i think i think this is it right here we buy into the belief that resources are like pie we got enough cherry pie for everyone in the room except for ryan takes three slices that means the people over here aren't getting any pie that's scarcity a perspective i call the consumer condition where people take more value than they create and it's a trap because money and pie are definitely not the same thing even if there's a limited amount of money they're putting it on screens as we speak there's an unlimited number of times it can exchange hands we use it to buy computers and clothes food and shelter entertainment like comedy and concerts basically the more times money is exchanged the more value is created unfortunately in the consumer condition people make irrational decisions especially when it comes to their money irrational decisions reduce value and destroy exchange in other words they do stupid stuff so i it goes on but but there's a whole world well so that's that's interesting i never thought of that idea of when you consume pie it's gone it becomes poop you know but but when you consume money and you it it keeps getting circulated and and the very fact of if all you did was have money in the bank the bank loans against that the loans that they pay they pay interest on that loan it's back in circulation as soon as it's there right so there's really no way to hoard money there's no way to consume money it's just energy that goes back into the system well said yeah think of it more like a river like the amazon river than a dam like like the great salt lake i live in salt lake is a dead lake that has a stench nobody lives around it it's just dead but the amazon river has so much flow to that river that there's miles of fresh water in the ocean where it enters and there's an abundance of black to the point where we'd be scared to probably get in that river because of how much flow there is and so money is about flow and exchange creates wealth the more times dollars are exchanged because we serve others solve problems or deliver value the more wealth is created so dollars follow value if you want to create more value create a more compelling vision you want to create more value solve a bigger problem you want to create more value discover what your talents are instead of expecting someone else to hand you something handling like unearned income where someone just hands it to you that's called a gift or it's called a curse because sometimes when people inherit money they feel different about it they feel guilt and shame and then they go those damn one percenters i'm one of them but i'm giving all my money away because they didn't earn it they're not stewards of it right yeah and right now how i mean you work with a lot of high net worth people how are you approaching being a good steward of that money when we've got zero percent interest rates we've got a changing economy like what's going on for you and this analysis has anything changed in your approach right now yes it has though tell me so in the past people could be a little bit passive with their money and be okay i wouldn't call it great but they could be okay yeah but in the next three to five years the transfer of wealth will be so substantial that if you choose just to set it and forget it invest early often always put it in a public market and hope that it works out in a mutual fund it's a very dangerous time in territory because of what's happening first thing we have to understand is in the next decade in the next 10 years in the united states alone 50 percent of the wealth will transfer hands because 418 000 businesses on average per year will be sold that are private businesses that's the you know so that's we're talking about almost 5 million businesses in the next 10 years are going to exchange haines well there's going to be people now that have that cash there's going to be people have to buy those the the second thing is the stock market has been overly propped up and overly valued without consideration for technological advance that will start to decimate it and hasn't been taken into consideration a number of eroding factors and the reality is 84 of the gains in the stock market are got by 10 of the investors which are mostly hedge fund managers that are actually trading short and long at different times so when they say the market did six percent in a year it might be three percent for the average investor just setting money aside and inflation is going to decimate that three percent now we have to worry about deflation first and then inflation next but if we just sit on money it's going to be worth so much less and there's more money in the economy which will go back into the hands of people who are buying businesses buying real estate or doing intellectual property everybody else is just handing money over or setting on it and saving it without intention for it we'll find out it will be worth less and they will be in a more dangerous situation because the things that they want to buy that actually matter from the investment standpoint will be further out of reach so it is a critical three to five years that people start taking responsibility with their finances and do something about it otherwise the middle class is going to become lower middle class in the next five years and the upper class is going to become really wealthy if they're thinking about investment and leverage and acquisition instead of savings yeah so so in other words in even 10 15 years ago having a more passive approach made a lot of sense and i remember kind of the old business uh like presentation they say like well you just park your money and get nine percent per year yeah you could get like 15 percent in the 90s and some people's mine's still stuck in the 90s we're in a time where it's gonna be like six or less so it's not and inflation's going to be much higher so how do you how do you figure that because that hasn't been the case in recent memory i mean we've had 20 gains for the last like five years or whatever it's been so what what what's different in your opinion okay so i've done a little bit of detailed research on this okay so if we look from there 2000 to 2015 which you know there's a couple bad years in there there's the 08 010 vote 2000 2002 but the market if we look at actual companies that went out of business in the s p 500 and instead of see one of the tricks they do marketing wise you know marketing well so you'll understand there's people that do these things when there's a company that goes out of business in the s p 500 they just replace it with the next biggest company you lost money on that stock that went out forever and yet they just replace it and say what the new returns are with the new company not zeroing out your account okay average return is inflated your average return is not your actual return because of that loss and and then the second thing is volatility has a major impact on investing so if you have 100 grand and you lose 10 you're down to 90 grand now when they say the market's rallied we're back up ten percent you're at ninety nine thousand dollars but there was fees associated they don't waive your fees during downtime so now you have companies that go out you have volatility that's impacting you and then we take into account inflation from 2000 2015 the s p 500 did 8.7 total return net of inflation 8.7 total now obviously there's four really bad down years in there but most people look at well i had a 20 year yeah you did but you also had 20 on a lower amount when there was three years of loss so you're way far back from getting back to even and you lost time value of money over those three years so we also just see in the future like dude how many small companies are going to overtake these big companies if we look at the s p 500 how many of those 500 companies do we not really love doing business with but we like other up and coming companies that are using technology that could displace and make those other companies irrelevant that they were only relevant because of past retail rules but the only relevant because of acquisition structures that are in a different sector that will start to compete with them in ways they can't see because they're not nimble they're not quick and they don't have innovation so ultimately we're going to see a higher rate of decline with companies going out of business we have plenty of volatility you're watching the volatility like crazy right now the fees are in existence and that's not even accounting for ryan flash trading flash trading is skimming some of the returns from the average investor so so there's just so much complexity in something that has been made to seem simple and my problem with it is why is it synonymous with the majority of americans that invest in equal stocks i look at the bigger opportunity in the small business sector because if we look at the the you know if we just look at the multiple for a major company like if we're buying the stock at this price what does that mean this company's worth a lot of times it's 20 times what its actual assets are i can't think of a small business that people are paying that for if we look at 96 of small businesses do less than a million revenue so less than a million revenue doesn't get big multiples it's it's it would be shockingly rare a lot of times you're buying for one to three times of ebitda which for those that don't know even it's you know earnings before interest taxes and appreciation it's just a way to calculate after certain expenses what the company's worth so we can buy that at a deep discount and there's actually more room for growth in a lot of those things because a lot of business owners as you know neglect their cash flow don't focus on their money they're doing it all through uh hard work and effort without systems and structures and so there's a massive opportunity to gain in the small business market is way more than the big businesses way more than stocks yeah so so let's let's go there because i think it can be easy for the average person to see this as really bad news but there's a lot of really good news in all of this too like when when you you mentioned that there's coming there are going to be a lot of big businesses replaced by up-and-coming businesses and sometimes that can sound a little bit scary but if we look at the last 20 years where was amazon 15 20 years ago where was google 15 20 years ago where was apple 15 20 years ago these were emerging companies at the time these were companies that were just a blip on the radar and now they're trillion dollar companies i don't know about you but when i was a kid a trillion dollars was like saying a kabillion dollar like a billion billion dollar like it was a number that didn't exist right and and now you have multiple companies that are worth a trillion dollars where was facebook 10 years ago i don't even know it was public 10 years ago and so those who were looking at those companies are now fabulously rich because they were looking at where the world was going right rather than where we are and where we have where we have been i work with uh i mean my business is capitalism.com i help people start businesses specifically physical product businesses because that's where i've seen people get the most traction hitting their first million in in a year or so there was just a case study that came out it wasn't out of our community but there's this company called layered super creamers are you familiar with this company super creamers i know so they're they're powdered coffee creamer company right and and like it's it's big and it's actually big in our in our little circle and like the paleo health community right so there's an amateur barista i don't do powders i just okay very good giving so that's very good so so this this company is does about 19 million dollars in top line revenue they're not and they're not profitable okay so they're they're like they're growing aggressively 19 million is nothing to sneeze at but it's it's not like their facebook right they just went public and they currently have a valuation of 425 million dollars garrett now that's ridiculous that's absurd and it makes no sense and i don't care because it just shows how valued good emerging companies are which is why i think it's the best time ever to take control of your finances by becoming an entrepreneur even little things that you start can become massively legacy changing for you and your family and there's there's case studies like rx bar which was started in some guy's basement and sold for 600 million dollars there's mirror which was just a company started by a husband and his wife and they were bought by lululemon for 500 million dollars in two years there's native deodorant which is started by one dude for 500 he started with 500 he sold to procter and gamble two years later for a hundred million dollars there's a bunch of these case studies and so there's plenty of good news happening while the structure of everything is fractured one of the other good news you mentioned low interest rates is for the for the down payment on a home you can acquire a business and with the interest rates the way they are today the majority of those that you would buy can cash flow from day one now you have to get knowledge about it you have to know what you're doing with it you have to great getting a skill set but look if people can go through school and learn math and science they can learn business business is in some ways easier in other ways there's people and emotions involved which makes it complicated but you know you've done it over and over ryan so you know you've got a formula you understand how it works and i just think that that's the news the news is we've been trained taught and educated to wait for 30 years hoping compound interest will save us 95 percent of the time people are not financially independent at age 65. so compound interest isn't the miracle it's purported to be what is the miracle is cash flow and having entrepreneurship because entrepreneurship comes with a lot of tax advantages and a lot of influence that you can do to have some degree of control over the outcome versus just hoping that it all works out and so i i think that we it's the time for entrepreneurs to rise because we have so many businesses coming out of the market and there's so many things that can still be created or invented or or dialed in and right dude when we were when we were little babies you and i were little babies think about how much it took for someone to start a business versus now the tools and infrastructure that exists that are near free or very inexpensive to help you to do something like that i have someone that's a client that two years ago started business on amazon struggling struggling struggling doesn't come with my team they're exiting for three and a half million dude they weren't even i was just like wow like i'm and then they're like hey do you want one of these things for free and thanks for all your help and i was like dude it's crazy because i you know it's just amazing how short of a turnaround that was and it was a a mom that just was now okay my kids are out of the house what am i gonna do and start a business and within three years from the time it was started is selling it for three and a half million dollars i mean that's pretty phenomenal like that's an exciting time to be alive the bad news is we can't just sit around and hope someone's going to come say this because government can't save you amen operations won't save you and effort isn't enough it's time to leverage intelligence and add more value and entrepreneurship's a beautiful vehicle and and there's good news to that statement of effort isn't enough we're now in a state of the economy where effort is really overrated and overvalued which is why you hear some people say like but i work so hard or the hardest working people are paid my dad's a coal miner my grandfathers were coal miners effort is not rewarded results are and results are easier to line up because we have more technology that makes things faster easier and cheaper now and so there is i have found some of the the hardest lessons for my entrepreneur friends to learn is that more effort does not equal more results it is it is because more effort you're you're married so when you have you ever experienced where you feel bad about something and you try to make up for it by like um over serving your wife and she's like what did you do wrong what's going on here what like like what what what happened like there is there is like there's an an expectation that the harder you work the more reward you will get and that is not that's not the case we're now in the in the position where all we have to do is serve the other person and by servicing the other person it goes back to what we talked about the beginning of the call when you serve the other person that is when the economy expands when wealth expands and when your opportunities expand and it is not related to hard work which means here's the deal we've got to learn new skills not like a lot of us aren't equipped with the skills in this economy because it's not necessarily what we're learning from textbooks it's not what we're learning from colleges it's it's different than that and i think emotional intelligence i think communication skills from from speaking i think base basics of business and finance these things are going to take people a long way and i just still think that those are still in some ways much simpler than the things that people go through and learn in school and memorize and read textbooks and you know that you don't know if you're ever going to use it or not these are very usable things that lead to a lot more enjoyment of life a lot more wealth with life and you become a much bigger uh you know value grade garrett a lot's changed in the last couple years with a new with tax reform with fed policy with covid and stimulus bills and all of this one of the things that i have admired most about you is you find ways to move money in a place where it's protected and it can grow you have a unique eye for finding assets and for for uh depreciating things and and the actual strategy and structure for this we are the time we're recording this we're right on the heels of an election is there anything that you're planning for or responding to based on fed policy election and all that's happened that's different as rece than as recently as a few years ago have you adjusted the strategy at all so the first strategy that i like because because people change in politics and different parties get in and different philosophies uh from a tax perspective i always have as the largest number of possibilities i could execute at any time interesting so like for example 2006 i bought a lot of artwork at a deep deep discount because i bought collections from two artists and i agreed that i would never sell it on the open market so it was a big quick transaction for them and then what i could do is after holding it for three years i could donate that art and i could donate it for the appraised value not the book value that i bought i see which gives me that two dollars for every dollar i spent so that way when i sit on that arc but then if there's a major tax change taxes go up and they repeal certain things like actually the 2017 trump tax plan took away my largest tax strategy i've been preparing for for five years what it was was real estate depreciates for tax purposes right you get to depreciate it and write it up well intellectual property depreciates faster than real estate and when you have an evaluation on your intellectual property and the way i was structuring it i was going to be able to start appreciating it over a shorter period of time and it was going to be a massive tax advantage and trump's tax plans from that to capital losses not depreciation and so it it really ip or on real estate i see real estate he got even more pro but uh on this but the good news was even though that happened we were researching everything else on the bill and there was something called 199.8 and 199a was what originally was talked about going to be the 15 tax rate for business owners and what it was was a pass-through deduction for businesses that had employees and take certain amount of salary that you could get your tax down to 20 over 37.5 and so i was able to initiate that to offset it but then covet hits and so they come out with the cares act and they have these three new irs notices that come and a lot of people didn't know these notices what people paid attention to was well i can get a hundred thousand dollars out of my retirement plan without a 10 penalty well i don't believe in retirement plans so i don't have one so i don't even care about that right um i mean like here's why i don't have a retirement plan really quick one i'd ever plan to retire i want to build a life i don't want to retire from number two is i wouldn't get into business with a heroin addict and the government is a heroin addict for tax and if you're going to make them your business partner and they tell you they'll take the tax out in the future what makes you think they're going to take less in the future not more we know the only way that they make money is through taxation so why would i get a partnership with them so that was just a side note but this these these uh rules that came out with the cares act one was a net operating loss so it used to be that you couldn't write off more than 80 of your operations inside of a business so you'd have to just pay tax if there was 20 more and there's other times where you know this like sometimes you invest a lot in the business one year and the next year it's more profitable because of what those infrastructure was well what they can what you can do is go run a profitable year against the lost year and miss it mix and match it and they took the cap off so you go to 100 so you go all the way back to 2015 and be like man in 2016 had a huge year 2017 we reinvested a lot let's flip-flop that for tax purpose and then you get a rebate and so now the sudden you go back and get you know r d credits if you've done anything with software or websites or apps or you can get domestic production credits if they were before a certain time that kind of got changed with 199a which is research and revenue based upon that research so there's i'm always looking at how many doors can i have open for you know access to um tax advantages and then number two i for the i'm actually refinancing or at least getting lines of credit against every piece of real estate i have because it's interesting now am i going to tap into that i don't know but what i do know is we're going to be able to make money on the buy with the stress when people are distressed they have to liquidate quickly and those with cash get that deal those without cash like the simplest example i have there is my wife and i were gonna buy a home years ago and it was coming out of the 2008 recession so they were asking 2.2 million for a home that they had like 3.3 million and i was like you know what we're gonna get this for 1.5 all right like really like yup because i know that they are asking too much because of their emotions and there's not a lot of activity on this so i just 45 days for negotiating i had it down to 1.6 million i'm like see we're one offer away and all of a sudden they didn't respond to my offer and i was like 1.5 i i fill it in my gut turns out a family that had 1.5 million of cash said we'll close in five days and we've got the cash here i had an approval from the lender which they knew was at least a 30-day process but not a 60-day process for a jumbo loan like that so when you have cash you can make money on the buy so i am looking to have more access to cash than i've ever had because i might buy a complimentary business that supports wealth factory um you know i i really feel like the next phase intellectual property is going to be even more valuable people are learning different because of covet and so we have a way to reach people in a much more leveraged fashion than ever before and i think we fast forward five to seven years because of what kobe did with quarantine so intellectual property real estate small businesses and tax on my big four initiatives that i'm focusing on based upon everything that's happening here and you've got to own assets to battle the amount of money that's being circulated and added to the economy it makes sense and what i found most interesting there is that you're securing what i heard is you're securing lines of credit against your assets not necessarily borrowing against them so you have the cash now but securing the access to capital so that if and when the economy melts you have the ability to move really quickly to buy up those assets now here's here's a counter question for you so i was a little bit uh nervous about that i like how i'm interviewing you and now you're interviewing me we don't nobody shut up business what's going on we obviously know each other well uh you know bernie shut up after this i'll shut up after this question i promise i'm good with it man as long as you're happy i'm going i just i'll i'll shut up but i have one burning question so there was i i was afraid that there was going to be a meltdown in march of 2020 when everything shut down and i had just put a house on the market and was like i mean is there even going to be activity on this ended up selling in three days and today just a few months after i closed redfin says it's it's appreciated 20 20 right so like it's just it's nuts what's happening because we've we've really inflated through this this all this cycle so what happens in the events that we think there's a meltdown but prices don't go down because we inflate our way through it is there a way to plan for something like that okay so first let me let me explain just a couple things for everybody people do not buy homes or cars based upon purchase price anymore they've been buying them for a long time based upon payment so what's happening with cars is it used to be you get a 36 to 60 month loan and what they figured out was hey we can charge more for vehicles add some additional features and grow this if we move to 84 month loans and so what happened was people started buying more expensive vehicles so if you just think 20 years ago driving around on the road versus today look at the types of vehicles there are there are so many nice vehicles is it because people can afford it and have a higher standard of living part of it but part of it's because they've extended the loan out to keep the payment the same so they end up with a nicer car because they're now encumbered for a longer period of time but you know we'll see what happens because back in uh february of 2019 7.6 million americans were behind on their car payment 7.6 million that's substantial which means the value is being held up artificially on what vehicles can really sell for because hey if we just had to pay cash for them you know and then b if there's all these defaults and then they have all the cars entering the secondary market what's going to happen um but the same thing is happening with homes when interest rates are as low as they are today like dude this house i'm sitting in right now i've never paid it off even though i could because the interest rate's always been really competitive and low but right now if i move to interest only because i'm not going to live here forever i'm cutting my payment in half right now and i'm like cool i'm going to cut my payment in half i'm going to get a line of credit with the equity that's because i got two appraisals one yesterday one the day before i'm like i'm just going to go buy some other real estate but real estate that i could use so i'm not totally reliant upon renters so to be valuable to me regardless of what happens in the next 10 years in the market but but think about it if you go to a country where they don't do mortgages like egypt you're going to see totally different housing now obviously we have a totally different economy but it's completely different on how small their houses are the quality of their houses financing transformed america because now the sudden we're buying on payment not on purchase price and so even the price of our homes are very high and artificial just because it's easy to access cash where did we see this for sure 2008 look what happened look at how much real estate dipped when lenders tightened and when we found out that people had multiple homes and they weren't even using all of them just because they could afford the payment and a lot of the payment was being afforded on a home equity line of credit not by cash flow so um right now we do have a bit of a situation where you know supplies are short on you know i just put in a new deck at my cabin and it was about 50 more than i would have paid at any other time simply because the trucks was completely out of stock and i had to go with what was left over and the price was higher and the labor was higher because they're in high demand right now because people are at home more often and they're going oh we should fix this up with our house but guess what because of covert and social distancing the supplies are a lot more expensive so what we're seeing is if you want to go build something it's really pricey now so what people don't want to go build they're going to buy existing homes that's raising the price and i had two five acre plots of land in the in the mountains for sale for two years guess what during coven they just sold one after the other like people are just like i don't know what it is mountain land especially because they're not out doing stuff in the city so what where does this leave us well i think at every turn the way it works is high-end real estate is always dangerous because that's where we have second homes and third homes and that gets hit hard but lower tier or just more affordable housing should be extraordinarily stable through all this and actually have a rising future because when people have to downgrade or when there's an because i still feel like there's a reckoning in the economy regardless of who gets president i think there's a reckoning coming in the economy that we've been artificially holding up with low fed rates and adding money to the economy and you know whatever it is because look at how many look but but the other good sign of that because i know you're really good at the positive side high unemployment is the the um the prequel of an amazing economy because when we're over uh employed people are disengaged with their job employees are having a hard time growing because they're having a hard time finding labor but when there's unemployment then people start looking for something better or they look for something that will work or they're willing to work for it because there's competition and businesses during good times can get a little bit fat lazy with their finances they start to get lean and innovative and i think that we're going to be i think there's a downturn coming but i think on the other side of that is going to be an unprecedented upturn if we don't mess it up that's interesting i once heard paul zane pills or say that um that the number one indicator of a growing economy of of the signs of good times was unemployment due to technology so people being replaced by technology was a sign that there was a boom to come and it sucks in the short term and we try to mitigate that with momentum yeah that's right because there's emotion attached to it but it's usually a precursor to the next boom that's really and i think that the number one thing that if everybody could focus on is what skill sets matter how do we continue investing in ourselves how do we continue to to gain abilities that are useful so that we could serve people in a greater capacity and it's a simple question either a how do i serve more people or b how do i serve the people already that i'm working with in a deeper way and if we continue on that question and ask those questions and investigate ourselves where i think that the economy is problematic is when people try to hold on to a relic of the past coming from a coal mining town you know is coal mining really where our future's at no it's not where our future is at we've we've got better technology we've got other ways of doing this without creating death and black lung and a terrible work environment but people that are coal miners and think they know nothing else want to hold on to what they've got i call that plane not to lose this is my whole plays about this there's two paradigms that people get stuck in one is playing not to lose which is hiding from our problems it's about preservation and accumulation it's about scrimping saving sacrificing deferring and delaying it's about protection right and so you have a lot of people that are in that because they come from the great depression of families that go we lost our home in the great depression well guess what the rules are different they can't take your home if you're making a payment back then they could take it if you couldn't pay it off so the second thing and this is probably what we're more guilty of ryan and the people we know is playing to win playing to win is only focused on the future always on the treadmill never enjoying the present and so it's always not celebrating win on to the next thing hustle hustle hustle grind grind grind work work work more and more more like they're both actually if we break it down the ego fight on play to win or fly on play not to lose yeah but i believe there's a third paradigm and i think the third paradigm is we create a game winning which is a vision compelling enough that we have to collaborate with others that is beyond our current capability and reach and it's something that really creates something valuable for ourselves and others and when we create a vision worth pursuing we've already won the game and now it's about enjoying the process along the way and so there's a whole kind of methodology about that but people aren't good at creating a game worth winning or knowing what the vision is because they're stuck in one of these other crappy paradigms amen that was extremely well said i the phrase that came to mind for that was that's play to play that's play for the purpose of playing like when i go to your tribe thing you're just having a blast we're out in like some you know countryside part of texas and you know you're like you're like a little kid you're like hanging out with your daughter having fun you're like you know like that's a win-play because you've figured out enough of the money game that your days aren't required to require for labor you can choose what you want to do now you didn't just go cool i'm done i'm going to sit and drink lattes and eat do nothing because there's only so much of that that before you start getting very bored and unengaged what you did is go well then what's next what can i do that's compelling and exciting you know there's people that win the super bowl and become depressed because that was their only vision and if our if our vision as dan sullivan would say isn't greater in the future than it was in the past depression sets in and so i'm here to help people have a vision greater than their problems unlock their hidden capital which is mental and relationship capital that leads to more financial capital i want them to choose value creation over survival and ultimately the thing that binds us all together is the most abundant collaborative amazing resource is love if we actually just love ourselves and others we've won the f in game like that's where it's really at and if i say that first then people go ah this hit me with his damn hair but i'm talking to capitalism here man i'm a capitalist you know and and i i believe that capitalism is found founded in love is is based in love is baked in love it is the i believe it is the expression of love because it is when you believe or love something so much that you create it and then it becomes shareable with other people that is love at its essence and the ultimate form of reality is creation so if we can create something that's so valuable by the way i think that the problem of the term capitalism is that people haven't distinguished cronyism from capitalism that the people that are socialist or communist that point out the problems of capitalism are seeing cronyism and thinking that's the same thing they don't differentiate so i don't know if you wanted to find that or you want me to define that but i think that's where the crux of the issue is yeah i mean well cronyism very simply is when business and government collude it's when they get in bed together and they change the rules now people will often see that and want to blame business for that i blame government for that because government gets in the way government makes it incentivized to partner with them i blame people for that government sure sure and so you can blame people for that and where do you have more direct say over government or in business you can stop buying products from a business you can't you can't just change the government here's the deal i'm compiling which companies i'm going to go all in and support and buy stuff from and which ones are in cronyism and i'm going to not only avoid i'm going to start telling people why their company is not because i vote with my dollar every day yes you do but the thing is it's a privilege to be a human being and i'm just looking at making a statement of where's our real value on a day-to-day basis and i think that conversations like this are extraordinarily helpful but i also think how we live our life whether it's having a vision or a vision over a vote is infinitely more valuable a vision over a bus i publicly said in 2016 that trump wasn't a real capitalist because he made his money by partnering with government and giving government contracts which was cronyism he's a cronyism he's he's a he's a cronyist which means correct and and you've seen that reflected in the policy like the tax reform bill was very heavily weighted for where those investments were which was realistic now asterix i don't necessarily think that that was mal intended it's just the inevitability of what happens when business gets in bed with government i also asterix thinks that the tax reform bill and a lot of the policies over the last four years were a huge step forward i mean if the tax reform bill was a ginormous step forward it still reflected cronies policies but it's always they were helpful and what's crazy is i hate how people talk about tax because what they do is they focus on like dollars over percentages so let's say oh the rich people save this much money correct right but they're not looking at the percentage because what actually the subtle thing about it taxes is that as time goes on taxes actually really start to hurt people who don't continue to earn more because inflation means you have to earn more money to buy the same things and if taxes even remain level it means that every dollar you earn gets taxed at a higher rate over time so there's less for you to spend when things are more expensive and so you know and the reality is if you're w-2 it's just taxes are what they are but if you own a business people are frustrated with loopholes but we have to understand is there's 12 taxes other than income tax 12 other taxes and yet the only thing that people typically get fired up about and frustrated with is income tax right the reality is excise taxes we're all using paying for what we use but you know wealth tax is what i would get fired up about if i lived in california and they're saying they're going to tax a percentage of my net worth that's really concerning right because super sometimes net worth isn't very liquid and you know like what's on paper versus what's in reality or two different things it's kind of like people talking about basis will you become a trillionaire well guess what his wealth is heavily on paper he can't take that tomorrow and spend that money and when people like amazon paid no tax well guess what they paid a boatload of self-employment tax and you know trump if he's in property tax and state tax think about all the sales tax right and sales tax and all these there's 12 taxes other than income tax and my thing with income taxes people get fired up because the way it's presented not the reality that it has so even if they go well i paid less in taxes as a business owner realize i paid self-employment tax on all those dollars and i gave that money to employees who then paid tax on it so it's not like the tax didn't get assessed simply because i had expenses that were investments to add more value into the population which by the way why does government incentivize anything with tax i've been this is my real clear i'm writing a comedy bit about it right they incentivize it for anything that helps you to protect and create other taxpayers if you create other taxpayers or protect their taxpayers they will give you a tax incentive so if you're housing someone we'll give you an appreciation if you're birthing someone we'll give you a write-off all you do is go we need more taxpayers so let me let me incentivize you to create and protect those wow that's a braingasm it's kind of real though right like when i saw that i was like yeah i'm writing an economy but on the 12 types of taxes in a very fast fashion i'm still in the middle of it that like kind of takes people down the road i don't know if they're going to be up in arms and pissed off at the end of it or just feel a little bit less worse if trump or kiyosaki say that they don't pay taxes yeah i i like to say amazon paid zero tax except for billions in property tax billions on state tax billions in employment taxes oh my goodness i mean not even to factor in the maybe trillions of of capital gains that were paid by investors who bought amazon stock right and then sold it and now have to pay tax on that so they created a whole lot of tax base the world's really good at headlines man and those headlines are designed to make us angry and if you're angry we're not really clear thinking the higher the emotional over the financial iq for sure and so it's really easy to get in this buzz sob like that's why that's what i really appreciate about you i get all fired up about people wanting it to be like burning man society which would never work and then you bring up the bathrooms and i go off for two hours but then you're like let me tell you the positive side let me tell what's really good about this like i really appreciate that about you ryan i think that that's a rare quality that you possess that not everybody else has thank you thank you and i do it out of my own desire to be happy so i i believe that the world is 50 50. though like there is i can i can give you good news and you can tell me an equal amount of bad news and it's the same news right i mean even facts what we call facts are interpreted positively or negatively so we have this obsession with facts facts don't mean anything until we interpret them i have just chosen that for my own well-being and happiness to look at the positive side because the more that i focus on the negative the more that i feel disempowered to do something about it think about this someone could be completely truthful and ineffective someone in communism could completely believe in what they say completely believe speaking their truth and the reality is it's ineffective because i think communism exists because people think there's a heart on top like hey we're we're taking care of you we're in this together but it's a tyrant that gets all the benefit and then everybody else is forced to do work in order to provide that so-called benefit and i you know i was planning before cove but i was going to take my son to vietnam in cambodia we had the flights booked for march 27th because i want him to see first hand the effects just wanted to say like hey vietnam has been communistic and they still have northern vietnam which is especially communistic and i've been to that square and i've seen how people live and it doesn't mean that people can't be happy but i am telling you it means people are misinformed it means that people are more in poverty it means that people are more reliant on things that are not true and ultimately i was happy that when i was driving these guys up to the survival camp for you know 10 hours up 10 hours back we had a conversation about the economy which was super effective we talked about uh how banks make money which was super cool you know like but i asked him i just said what do you think's the best system socialism communism or capitalism and with no hesitation they said capitalism which is great because young kids on youtube go down these conspiracy theories within two seconds yeah they do that let's get gets the attention and you know before we really understand what it means to create value and earn money and provide a lot of times it's more easy to be susceptible to be taken care of especially when you have parents taking care of you so that's that's a great segue so let's break this down a little bit if you're if your kids want financial advice from you what do you charge them man you know i have not charged them for financially right okay so here so that is what we would call communism right and it's voluntary we are as human beings wired to live in community with one another which is why we have churches and which is why we have families which is why you probably don't charge people that you are very close to you for certain things because you're a community the purpose of capitalism is to take that quality of work and make it available to those who are outside the truck strangers for people you've never met correct right communism is forcing that into the rest of the world yeah but so you you said communism you think people think communism a good idea because it's baked in heart it is to force what we would naturally give one another in community into the rest of society the challenge is that by forcing it you destroy it right you did you destroy the service to one another because of capitalism is to bring that service to one another outside the tribe to strangers which is why i say that the purpose of money is to fund and sustain good work and service to one another and when you can frame it to that that way to someone who disagrees with our ideals they soften because the purpose of capitalism is to make health care available to those who don't have it the purpose of capitalism is to make education available to those who don't have it the purpose of capitalism is to make wealth available to those who don't have it and if you see the freest markets that's where that happens you see it happen in healthcare healthcare in the places that it is not touched it becomes cheaper better and more available to those who don't have means input in like education we have free education everywhere education is now free and it's available to everybody because we have places like the internet where it has been untouched and so the more that you allow human beings to be in their natural state which is in service to one another which is love and contribution to one another the more that it becomes a positive cycle where goods and services become more available to one another so capitalism is not about creating wealth although that happens it is about making service and contribution accessible to everybody the byproduct is that those who create it who operate in love who operate in service get fabulously rich it's the byproduct yeah it is it's the byproduct right so here's how here's how i would summarize it vision is the win value is the way dollars are the byproduct and prosperity is your state of being love that yeah i feel like you need to be more passionate dude i mean come on i mean i have no opinions about this yeah i mean have you thought about this at all i mean a little i had so much fun with that burning man debate when you're like look at the look at the uh provided four bathrooms i'm like oh my god that's that's like nuclear it's terrible there it's just look at anything that is provided for us look at the dmv look at the i mean even something like the postal service is getting crushed right now by private industry now i do believe that government can have a progressive effect in industries that don't currently have a marketplace i think nasa is an example of this there was no marketplace for space travel and then nasa pioneered it but guess what happened now and we benefited from that and now there's private companies popping up for space that's it that's it and so nasa can play less of a role we can stop spending money there but once the gov once the government is no longer necessary we tend to hold on to it all right so in reality we can let it go away so here's what i got for you the thing that ruins it all any of this is censorship censorship is saying do this to make me happy even if it doesn't make you happy or censorship is you should do this because it's the right thing to do you should think this because it's the way that i think and the crux of censorship destroys any of this free market because it has people lose their own self-expression their own self-worth their own ideals and ideas their own vision their own creation all the name of well this is how it's always been done or if you want something done right you got gotta do it how it's always been done and you know and you can't you'll get hurt if you do something new and you know someone needs to protect all of us and like all that kind of fear is what destroys it fear is the crux fear and censorship is what is harming everyone right now because you know like we're being told to suppress emotions or not have opinions and now people now more than ever are saying you know and i don't like ryan because of his opinion or i don't like derek because of his opinion and i'm like hey nobody's gonna have the exact same opinions we could find something to disagree on even though we're just sitting here and agreeing like crazy but i'm sure we can get somewhere where you're like that's stupid and i'm like what that's great but the thing is we can respect one another we can love one another we can celebrate what we're similar in and we can also appreciate what we're not because if we were exactly the same that's no fun there's a divinity to diversity it's the diversity that creates character and culture and and you know excitement and entertainment it's it's uniformity that destroys and decimates that i feel like i'm at church amen brother you're you are you i see you would have been a great pastor thank you so i i want to modify i would show up and act like i was jesus after you you know he is here ladies and gentlemen so i want to modify and put into my word something that you said yeah the thing that ruins everything is compulsion or force and censorship is a form of proportion and force force is done out of fear and fear is the opposite of love there are two core human emotions fear and love fear is the opposite of love not hate hate is always baked in fear fear and love are the opposites so capitalism is love force is fear and those are the opposites so what is the most loving thing that you can do provide freedom for as many people as exist on the planet earth drop your mic right there bro just drop that i mean that would actually really be loud [Laughter] dude you're gonna love this thing right here man i can't wait i can't wait to see it my life broke like and i'm gonna just keep working on it because every moment i evolve and grow and worry less and embrace love more it just comes through to another level so i just performed at a practice of it for a bunch of the mavericks they were in town and so it was fun man it's cool beautiful i can't wait to see it well you're dialed in here man capitalism.com tell what are you up to like what what should people be checking out what should they know like i just wrote a book my first book is called 12 months to 1 million it's about hitting your first million dollar business in 12 months or less and it is it follows a three-stage formula which is i call the grind the growth and the gold the grind being getting clear on your vision making hard decisions and getting your first sale man vision's hard work yeah and most people are most people want to skip that and go right to the selling mode but you can't sell much without a very clear vision yeah you know you need to have a container in which to live that's your vision that's right and the whole direction is based off of one formula which is four products that sell 25 sales a day at a 30 price point is a million dollar business so we reverse engineer hitting that formula i mean i love it you're teaching entrepreneurship in a very direct way and yes so needed so the book is called twelve months to women withdraws oh man thank you so much for having me garrett it's good to see you dude dude that's the most i've been interviewed by someone i was interviewing but uh but it was a nice ebb and flow i mean it's just kind of like it's really fun to to go there and i just love like those last two rounds you did are so spot-on and articulate and well well unveiled for people to kind of chew on think about and hopefully integrate into their lives so we'll turn them into clips for sure man i mean i think it's something that you know that people need to hear about i now know that i gotta go start talking about it because i know tons of people that aren't business owners that think it's too hard that i'm gonna be like look man go grab ryan's stuff seriously it's the best way that i can serve them it's the best content i've ever created when we were on the stage together for the first time and i was sitting next to uh ezra and that dude spilled he spit water all over me i remember that he was like messing with his chair and like he just he's as comfortable in a stage as he is i think just at home watching you know i was once on stage with him and he just walked off the stage he just left and i was like what was it he's like i just wasn't having a good time like we were on a panel he just like got up and left he's like i just wasn't having a good time this is a terrible terrible form [Laughter] all right dude let's get the best place to buy the book do you have a site for the book versus amazon do you have a place they can go grab capitalism.com book or just amazon is fine go to capitalism.com that's a good place to do it it'll link you to amazon so i thought maybe they get your you get their information they can stay in contact with you i just care that it shows up in their home if they show up if they read it it's a win for me don't care now that you have a daughter i see you drinking like pink stevia you know like i just like that you've embraced this this is the best flavor man grapefruit highly underrated cool man good to see good to see you man the number one thing that helps you to drive value and dollars follow value comes down to who you are when you're at your best how do you figure it out how do you uncover it and discover it there's some great resources if you follow the links here

Channel: Garrett Gunderson

Views: 29,273

Keywords: Garrett Gunderson, Wealth Factory, Wealth Building Strategies for Entrepreneurs, Financial Freedom, Financial Independence, Getting to economic Independence, what would the Rockefellers do, business, success, entrepreneurship, How To Become A Millionaire In ONE Year ft. @Ryan Daniel Moran / Ask The Money Nerds, Ryan Daniel Moran, Ryan Moran, 12 months to 1 million, Capitalism.com, How To Become A Millionaire In ONE Year

Id: 0osavntbnEE

Length: 64min 25sec (3865 seconds)

Published: Mon Nov 23 2020