Principles For Dealing With The CHANGING WORLD ORDER! (How To Prepare) | Ray Dalio

there are three most important things that are going on to great extremes that have not existed since the 1930 to 45 period the first is the greatest problem of mankind I believe wow that's a big statement the greatest problem of mankind and it is an exceptional problem at this moment in time is people having opinions that they're stuck on that um they won't you know like I have to have my opinion and that's right and so on because it prevents them from um resolving it uh from moving forward to finding the best answer from compromising and or doing you know so like everybody's arguing over everything and and they and you know they're it's almost like they're killing each other and and we're in a society um you know I have another principle which is when the causes that you're behind are more important to you and others than the system the system is in Jeopardy so do you are you just literally going to go fight so here we are as we think will we fight or we have or will we have protocols for having thoughtful disagreements and getting past them that's why I love your principles and protocols in your opinion how has this last couple of years been in the history of uh Investing For You in the history of the last 40 50 years is this a really really bad time in your lifetime or is this just another bad time but not greater than previous bad times you mean in the world in the world yeah um there are three things that are going on now the three most important things that are going on to great extremes that have not existed since the 1930 to 45 period okay and it's important to know those three things and then to understand them well okay uh the first is um what is going on with money and credit when you get to something like a zero interest rate and um you need buying power the government needs buying power but they can't they can't tax it and they can't so what we have is the production of a lot of debt that the Central Bank prints money and buys that debt to spend and the last time that happened in the last few years it happened starting in 2008 interest rates at zero they couldn't lower their interest rates so they had to print a lot of debt and the government went in and bought it okay and we're coming to the end of a debt cycle okay so this is a big thing like because where does the money come from and who will get what the government will now determine that and then they'll print it and it'll devalue money okay this is and how money flows a big deal so that's number one the second one our wealth and political gaps that are causing great conflicts throughout history there's always been the main things that everybody's always fought over is uh money and power particularly political power so what we have is a situation when you have a large wealth Gap and you have an economic downturn particularly if you put a lot a lot of debt having at the same time you you have a fight I mean that's been true through history um and it it's reflected in the political Gap so the political Gap is um you know it's classic political Gap left right you know um okay capitalist socialist how do you distribute it how do you how are you going to deal with that that becomes the other and how you fight so that's the second of the two the you know this wealth political Gap that's causing the conflict and it's coming at a time where we don't have much money because we're print we don't have a good financial position we're Printing and then and putting it out so we're still paying off debts still right yeah and but with made up money I mean meaning what what happened like covid was a uh such a good example okay you have covid and a lot of people and companies have Falls in their income that were would be ruinous okay if if checks didn't go out we would have had a revolution right and and so that those checks and how do you save everything and so on okay so and it's not like the government had real money like they it's if they didn't have any money they already owe a lot so they just printed more money to give them so they made more debt and then the government and the Federal Reserve printed it and that you know the checks went out which diminishes the value of money and so on and changes things yeah so then the third thing is the rise of a great power to challenge an existing great power so the rise of China to challenge the United States in all history there are World orders what that means are are um you know there are the dominant power you know it's like in nature almost you know the big bull or something anyway there's the dominant power and then what happens is in 1945 um the united we entered the American World Order we the United States won the war and it um it ended and then in 1945 the the winners of the world carved up the war world we had uh 80 percent of what was considered money at the time gold 80 of the world's money essentially we counted for half the world's economy and the rules were set in the United States basically that's why the United Nations is in New York the World Bank and the IMF are in Washington DC because we began the American Century okay that's and then uh we are now at a time we've never had somebody another pair of challenges in the same way there was Soviet Union but they were always a fraction of the size economically so couldn't compete on that same basis they had nuclear weapons but they didn't have the economic power and so on and but now we're dealing with China coming on as a power I spend a lot of time in China over the last 36 years by the way and I admire how they're doing a lot of things right I mean I know it's controversial to say that but um in terms of like their power yeah whoa like sensors since I started going there uh their average income has increased by 30 times you know so they're a comparable power and they're also going faster and so that is has an effect so those three things are things that never happened in my lifetime before but happened before in history which led me to do the studies of of what happened in history and the lessons I could gain what is that those three things uh money and credit wealth and political gaps and the rise of China what is someone like myself or some 30 40 45 year old 20 year old what should they you do with that information what should they be aware of how should they apply it does it apply to people uh in America General America or is it only applied to the wealthy what should we be thinking of no I it's a it affects everybody you know it it affects like we know let's start with ourselves most importantly forget about the outside thing can we be healthy and strong and what do we need to do like to know that you you have to be in it together like if we can Row in the same direction okay if if we can have thoughtful disagreement and get past that if we can be in it together like the wealthy and the poor and and and and you know and if you figure it out and and I know it sounds so difficult but at the same time if you read history and you see what happens when it's not when you have a civil war like we could be on the brink of a civil war that sounds so crazy but the truth is in most countries and and and almost every Century there was a civil war or a revolution some form of Civil War Revolution um so it's almost inevitable that we're going to have something okay you either resolve it or you you start fighting so badly that you damn you really do tell yourself to each other until you resolve it yeah well the the once you cross a certain line there's no coming back okay because you do the damage you you you demonize and that person such an enemy or that class of people is such an enemy that you that the communication's gone and the fight well you see this in politics today in other words is there a respect for the system and a mutual respect of trying to fight find resolve these types of things or will they go to any lengths to win because a constitution or law will only carry you to so far okay there has to be an element of respect for it right if you think about the presidential election it's quite something that we as a country as a people um when somebody might when the popular vote somebody else wins the electoral vote there's not even an argument like in other countries you might say those who had the popular vote would say what the hell I've won the popular vote I think it matters and somebody says electoral vote and so on okay there's not a question about that okay now um when you start to say okay is it this photo that photo or this thing or that and how far are you willing to go to fight and does the rules matter when you start to get cross that line and you do harm you hurt and you alienate then you go to accelerate this process and people should know what that looks like how terrible it is so maybe if they know what it looks like and how terrible it is and they can empathize a little bit but I I see people don't don't see it I'm living in Greenwich Connecticut Connecticut has the highest per capita income in the country and it's got the largest wealth Gap most of the people in Connecticut are pretty poor really some cases very poor oh I'll give you an example this is the community my wife works to help high school students 22 percent of the high school students in Connecticut are either disengaged or disconnected what that means is disengage means there have an absentee rate which is greater than 25 percent in their failing classes and I'll show up to class that's right they show up you know uh three quarters of the time and they're failing or that's disengaged disconnected is they don't know where they are they've dropped out of school 22 one in five so school is not working for them and they're in desperately poor areas like okay we have the coronavirus and so her efforts and our efforts are philanthropic that's what got her involved um they don't have computers they don't have connectivity they they don't they have they have problems getting food they get food in school they need the food in school because they don't have adequate food okay and this is Connecticut and it's right up the road so we had to we we bought these kids 60 000 kids computers and then we're trying to get connectivity and so on and you start to see this okay this is the same world now um I so I live on our neighborhood with my community and then there's the other they don't understand each other they're they're um they haven't lived there they haven't empathized and in fact there were resentments on both sides right like um the people in my community they don't feel uh they're very rich by comparison to um those other people but also to take care of their families to educate them they have their own challenges the work-life balance and so on they have their financial insecurities and so on so that's what they're focused on and then they might think oh these other people they're not taking care of themselves why don't they pull themselves up by the bootstraps do you know what it's like to be a kid growing up in that neighborhood and trying to what what are you talking about you can't pull yourself up from I mean you know there's a problem there's not enough food there are gangs they even the walking to school neighborhoods that are gang shootings and you can't and there are not enough police to do it okay so these two worlds ex and then the others uh say you know well um here we are and you're walking around with your fancy cars and your you know fancy clothes and and so on and we're suffering I mean come on and so they don't understand each other and so on we have to get past this we have to be in it together I think otherwise we're going to kill each other how do we what's the main thing that both sides need whether that be in Greenwich Connecticut or in the USA on different sides is it empathy is it compassion is it a awareness what is that thing that both sides need in any Rich poor dichotomy well there's the there's the intellectual thing they need in the emotional thing they need okay intellectually what they need is only maybe emotionally the fear and the understanding that where this will lead will be devastating okay if they don't deal with it if they don't deal with it together and you look at history you need the fear you can't give people necessarily empathy or love you know we could say oh they should care about the other person okay that's too much to ask I mean yeah you know that's not realistic okay but realistic is that you if you don't if we all don't get it together are going to have you know you like all that stuff you got well you ain't gonna have it anymore and and all of a sudden the things that are the most basic in terms of uh take care of it and then if you start to realize um that it's productive like if you if what do you need to be successful it's all I had when I grow up was um I had uh parents who loved me and took care of me I went to a public school okay and I came out to a world in which there was equal opportunity that that those are all the only things you need and you know health care but when you're young you don't need much of that so um those are the only things you need um now even in these communities sometimes you can't get the parents but you you can get people who care about them they're teachers and so on but you have to to strive to strive for Equal Opportunity do you think we have equal opportunity no of course not let me look at any any of the statistics I mean I I I can give you examples I I studied um this issue because uh first we when populism started to come around and um I thought that was I needed to study uh Donald Trump is as a populist and so and then it's all around the world and I and I needed to study that the different quintiles the top 20 next 20 and so on and I saw what the pictures of the lives of the majority of people are like the bottom sixty percent um um and equal opportunity um no put that in perspective those in the top 40 percent um spend on on average on their kids education five times as much money as those in the bottom sixty percent it's a self-perpetuating thing it's not a bad thing those parents care about having their kids well educated so because they do and they take care of their kids they're taking care of their kids they're getting them well educated and so on but not being well educated means you're not going to have equal opportunities and so as that gets narrower and narrower you have that phenomenon that you you know so there are a lot of ways you could measure whether there's equal opportunity if we if but I don't even know we can agree that we should have equal opportunity I mean like I I'd almost take a poll you know of the American people and see could we agree that we should have equal opportunity okay that would be an accomplishment Okay then if you could do that then we say can I take measures metrics by which key performance indicators by which I could say how are we doing on the Equal Opportunity goal right and then and then monitor that and you say ah it's getting better or odds getting worse if we could do that we'd accomplish a lot yeah we got to get to that point first this is fascinating I'm curious about the mindset of making money and there's a massive wealth Gap there there are people that who are making money and some that seem to be making more and more money and others that are always seem to be stuck in the ability to make money to save money to invest money they always seem kind of Trapped in not making it what would you say is the mindset that wealthy people have around making it and growing their money for them versus the mindset of people that stay stuck in not making it well I I want to distinguish there's big differences in Opportunities yes so let's say supposing you have two people of comparable opportunities yes and then they were going to do that okay the marshmallow test yeah as you as you know apparently is you take a kid and you say okay uh you can have one marshmallow now or you could have two marshmallows in 15 minutes if you don't eat the first one yeah if you don't eat the first one right yep okay once you start to realize that deferred gratification is going to make you better and so on and you start to count count and you say like something like how many days weeks months or years can I live if I don't have money come in and you start to focus in on that that's the first step okay like the marshmallow test okay so I want to save you got to start there then if you do that you're necessarily going to go save in what and then you'll start to get exposure to how these things are different okay then you start to care well I could have one of these and one of those and you start to experience and then you start to learn and basically that's what makes the difference that's it the so first having the ability to have delayed gratification then obviously diving in researching testing and and trying different things but the more and more you can say you don't want something now for a greater later is the essential key well and what it does then it when it comes to the money that means money yeah now at that moment that you don't want it you have savings that means I want savings right okay now you got savings so the next thing inevitably that's going to come at you is where do I put it and then you get your choices and then you experience it and you learn right yeah because there's lots of place to put it for Investments There's real estate there's stocks there's building your own company there's different places to invest what have you found are the top places that people should be investing well I think first you you start with what are the most important things that you're closest to like is it your business uh first calculate how many days weeks months or years you can live on your saving because when you do that you'll start to you'll gain security you'll gain that okay so look at how much you're spending okay and then say how much do I need and whatever that number is you're going to need more than that because it may go down rather than go up so okay now do I have a year spending okay you so I think I think you you start there then you start to think what are the things that are most important for me like and then you start with your your business or your residence that have a symbiotic relationship and that you know well let's say if you start with your business okay you're closer to that investing in yourself with whatever that may end up being that may be your best investment not not real estate not a stocks not the market well it depends if you're if you're not you know if you're doing something where you can do it yourself and that's the thing but if you're in a job and and that that's not the thing right because you because you're in a different position okay but anyway if you and then I I really think there's something good about your home a basic thing about your home because uh it's nice forced savings and it also means that you you fix it up you you know you're saving you find out there's oh well if I add this thing or that thing and you're enjoying it so when you're enjoying it and you're controlling it and it's yours and so on uh that's that's pretty good and if you know if they keep mortgage tax deductions and so on you know there might be some benefits to it also okay but that's not a black and white answer you know so you could take a short principle and say is it better to rent or buy okay that's a different question maybe yes it but by and large am I going to move you know all of those other questions but so when you start with okay what is it that's close to home and how much you need a certain amount that's liquid in other words you got it in your house you got to make a mortgage payment or something and all of a sudden you're uh you know you know it's not liquid and you lose your job well that can cause you trouble so how much do I have that's liquid how much do I have that's not liquid okay and you start to get those things right okay I've got enough liquid I got enough okay not liquid in those other things okay pretty soon you're you're getting yourself in good shape yeah you do those things you know you're pretty much in good shape and then you're also having some experiences and then you go beyond that you know and then so you start to okay what you know okay what's a stock what's a bond and then you know you learn from experiences I I learned through my my experiences I started when I was uh a kid 12 I used to caddy and I took my caddying money and I put it in the stock market and I was lucky in what happened to me by by the way is I took my kidding money and um I bought the only company that I ever heard of that was selling for less than five dollars a share and I thought that that you know well I I was really dumb I thought I'll buy more shares so if it goes up I'll make more money uh and it was the only company it was a company that was about to go broke but somebody some other company acquired it and it tripled and I thought ah this is an easy game and I like it easy money so but you know you experiment and you learn you're a very philanthropic individual you and your wife uh your foundation your company you give back in a lot of ways some might be through donations like computers some might be through financial some might be through just your work and your content on LinkedIn which is amazing I recommend everyone subscribe to on LinkedIn the content there's amazing you're giving back in lots of ways I'm curious what's the greatest gift a rich person or someone with money can give someone who doesn't have money to give the knowledge uh teach a man how to fish is better than to give them a fish I mean I think you can give them both you can give education and you can but uh ability the the capacity to be productive because you know if I can give you the capacity to go out in the world it's like going to a jungle I give you a knife and can you live in the jungle okay if I give you that capacity that's the best thing I can give you that's why I wrote the book and you know pass it along I wrote those principles over years and I wrote them down and that's what I want to pass along that's the most important thing yeah but but if you but if you've got money you can help people uh a lot in a lot of different ways which is thrilling what would you say then are the three greatest skills that people that aren't financially abundant or that are struggling financially should learn to master in order to be in a better position financially three skills what would you say they should learn well as I said before I remember watching the movie I was young David Copperfield with WC Fields and he speaks to David Copperfield and he says he said something like and I'll put it in dollar terms you earn a hundred dollars and you spend 105 dollars that's misery if you earn a hundred dollars and you spend ninety five dollars you'll have a good life I mean it wasn't exactly like that but it was but but basically I know so many people who don't earn much but are there because if you start to think about what it is that it costs you to live in terms of let's say the basics you know uh give me a bit to sleep and give me the food let me be educated and so on so forth I think most people can get themselves in a position where you know they're not positive so if you can be net positive and you could do that that you know that's number one uh you know as I carry that so that's you know that's number one then I guess it was the list that we went to you know the second is you know what do you do next in terms of what do you need what do you invest in you know and then and then you know going Beyond it and then there avoid the following mistake the most common mistake of investing thinking that the investment that did good is a good investment people rather more expensive the things that quite often those markets that did really really well became more more expensive and everybody smart money is all the time compete comparing them and competing so what happens is um the naive money buys the thing that was hot or is hot the thing that has been terrible which might be the thing that's beaten down so I would say also an important element okay so here's another one that's really important diversify so don't put all your eggs in one basket right because what I learned about this is that first of all all Investments uh compete and it's not easy to sell tell whether one investment is better than the other because if people could do that life would be easy and everybody make a ton of money um so and this is a competitive game that's very difficult to compete in so it's very difficult to say which one's better or worse you could take experts and you could and do all sorts of tests and you'll find out that they can pick that and you can't tell whether the worst ones are going to be better so because of that you understand that um even picking the best ones is difficult and particularly if you're naive like we spend hundreds of millions of dollars each year on Research to try to give us an edge okay now you've got to compete with us so uh competing in the markets is more difficult than competing in the Olympics you wouldn't think I'm going to compete in the Olympics but there are more people who try harder in order to do that so it's a zero-sum game so but diversification um that they're different uh will reduce your risk without um reducing your return yeah so if you know how to diversify well so um that's critical so I would say again uh get get your savings right and the reasons I say I would say um have great humility about what you what you don't know don't buy the thing that was hot just because you think it's hot um and then know how to diversify well that those would be the most important things I could convey Iowa had this dream of playing professional football and then I made 250 bucks a week my dad got in a tragic car accident he was in a coma for three months um I didn't have a college degree it was 2008 the economy went down uh I was living on my sister's couch she was feeding me I was making no money I was living off three credit cards with student loans and I didn't have my dad as that kind of financial safety net anymore because he wasn't able to help me and bail me out so it was more like what do I do no one was hiring people with degrees at that time even master's degrees I didn't even get a bachelor's degree yet and I was just like how do I survive so it was I don't think if the worst thing in my life would have happened I wouldn't be here learning how to be hungry how to like say I need to go survive right now and take chances so I I think I think that that perfect storm mentality made me into this Survivor creative mindset willing to risk it all whereas if I had my father to kind of protect me financially or say because he was like you're going to take over the business you're going to come work with me and that was my mindset when he kind of left emotionally and mentally he's still alive today but not the same from the brain trauma it made me step up as a human being as a 24 year old and say I gotta learn some stuff and that's what that's why I say to young people today look at this pandemic this Corona virus pandemic you know it's really tragic because it attacks the old guys but this but even worse as the Baby Boomers had it the easiest of all generations but now that their pensions are gone they're 401ks are gone yep Social Security is broke Medicare is broke so I say to younger people this pandemic this crisis is the best thing that ever happened to you you know you think about that iPhone you have more power and that I found that I had with my spirit you know Mainframe computer and then so when I meet people that say oh the economy is bad I said there's the only economies between this year and that year you know there's an economy out here but this is the best time for your generation because you're tech savvy I'm not tech savvy you know you got this was made for you guys the old guys like me are being cleaned out by the pandemic unless you have a lot of assets that are bringing you in cash way is clear for you now the old guys are gone they're dead right you know so it's really a great time but exactly as you're talking about the bad times are linked to the best times that's it yeah if you can see it but some unfortunately as you know there's a lot of your generation are younger they'll never recover yeah they're going to see it as the worst of time I know and they're gonna they're gonna reflect back this in five years and ten years and say that's a thing that screwed me up or hurt me and and be a victim to it as opposed to saying okay this is happening and how can I make the most of it and What's it gonna take for me to learn a new skill or get more creative or be hungrier in this time or more important who's your teachers hmm who are you listening to well you know that's why I keep saying to the young the Millennials you know if they're a pack of whips you know I meet Millennials who are just horrifyingly weak snowflakes I call them you know they go to college they taught trigger events or whatever you know the I don't know what they say today but they've got to have special rooms where there's no whatever I'm going holy mackerel Welcome to the Real World you know and there's other Millennials who are as tough as Nails I mean this is the biggest opportunity they've ever had huge so it just depends upon what's between this year and this here what's in your heart yeah for the uh what do you think is the the num The Next Step the first step or the number one step for the average person with you know the kind of the normal job that they might be losing or they have some debt they got some credit card what's the next step for them to not only survive but thrive in this market in this time well Alice I quit your job but that's not you know I don't have a job I've only had one job and I never wanted a job after that because I had to be hungry not to say you know but we're all different we're humans we're different beings if I show this diagram here you know it's why I created my cash flow board game because we have four different intelligences we had mental intelligence we have I don't know what that one is physical intelligence you probably have very good physical to make you know football and all that yeah emotional intelligence but spiritual intelligence so I went to military school in New York the first thing is spiritual you know I become a Marine it's spiritual yeah you know what I mean because you're putting your life on the freaking line yeah you know so nazim Talib you know wrote the book The Black Swan he also wrote uh anti-fragilies this is three kinds of people in the world there's fragile and that's what school systems are putting out fragile would be snowflakes and that's your choice you want to be that way have a good life the second type is that sauce a fragile is like a champagne flute yeah you hit at the shatters then the second one is called robust and a robust person is like The Rock you know you can pound on them dump on them yeah they take it but that's all they do they take and that anti-fragile is somebody like you where they pound the crap out of you and you get smarter and better because so I love nauseam Talib you know a lot of people call them Dr Doom but the way I look at this whole thing this economist we're publicly under depression you know we're not going to get out of this really oh yeah and so the thing is is this good for you or bad for you I'm looking forward to it you know the last the last crash was 2008. and I made more money in 2008 than in my whole life so this one here two thousand you know what is it 2020. I'm gonna get even richer but I gotta get poor and if they're Baby Boomers they're going to blame it on this coronavirus oh my health you know the hey hit the road put on some running shoes change your diet get some sunlight you know get healthy don't get don't be a wimp but oh no I'm so afraid of dying I'm going you're already dead you don't even know it yet you know in the Marine Corps you know in the Marine Corps we used to call them corpse people right corpse not core yeah of course no a corpseman a corpseman is a person who's dead but doesn't know it wow they're so afraid of dying they're already dead yeah it's about taking action taking control of your life taking control of your health your finances everything this is the I did an interview with uh Dave Ramsey uh last week and he said you know the last three or four recessions or down economies whatever you want to call it crashes he said I made more money during those times than I do in in good times so I'm hearing him say that I'm hearing you say that how did you make more money then and how are you planning to turn this into an opportunity to make more money now for you what are the things the actual like action steps is it investing more in the stock market is it real estate is it buying other assets what does that look like for you well the letters here you got to choose your teachers wisely when the market crashed in 2008 guess how much money I borrowed a lot 300 million no way from private investors the banker how does that how does that work because interest rates are dropping and real estate prices were going to the toilet and when I walk into my banker this is what Rich Dad Poor Dad about Richard airport has about a financial statement income statement balance sheet statement of cash flow it's a book on accounting people don't even know it's a book on accounting so I walked into my bank with my partner and had all this property that was floating to the surface and I say I'll take them off your hands I just give give me the money to buy the property wow that's cojones 300 million give me the money and I'll buy your properties for you that's crazy so it depends and this is my whole thing I am now 700 million almost a billion in debt really you know why because I don't pay any taxes the more debt I have the less tax I pay and the average guy goes how do you do that because you have bad teachers and so it's this whole thing that you got to choose your teachers wisely that's why I wrote the book fake fake money fake teachers fake assets I don't touch that garbage that Wall Street puts out I don't have a 401k I don't have stock spontificial funds ETFs doesn't mean you shouldn't but I don't need them okay right and the other part is look for young guys the best teachers are not in colleges the best teacher are on YouTube the best teachers are on YouTube wake up you know those guys George Gammon he's fantastic Patrick Bet David fantastic you know he's great records the fake teachers are in colleges they're telling I get a job right the carpet ladder you know Patrick David said it the best and I love that guy he says there's two kinds of leaders wartime and peace time and a peacetime leader is a guy like my poor dad and he goes through all the right schools he has all the pedigrees and credentials he does all the right things he climbs the corporate on the government ladder and all that well wartime leader goes goes to war so jobs Steve Jobs a wartime leader I'm a wartender differences I went to work I went to war twice on the front lines yeah and I checked what happened so I joined the Marine Corps I got a flight call in Pensacola I learned to fly go to Camp Pendleton I strap on my weapons I go to Advanced weapons and Camp Pendleton I go to Okinawa and then they sent me into Vietnam and I I came out of Vietnam about four months later back to back to re-stage in Okinawa and I thought everybody had changed I looked at the fellow Marines and I thought and it wasn't that there were I had been to war you got tougher it's different but when somebody's trying to kill you every single Mission I went down three times no way yeah and I came back stronger and tougher so I come back to Okinawa I got like a week off and they're gonna shook me back into Vietnam again I said what happened to these guys and it wasn't that they changed I changed so what happens to entrepreneurs who go out and they get their ass handled to them and they survive if you survive you see the world differently so that's what happened to you when you get the Android and all this yeah you see a different world whereas some peace time who's climbing the corporate ladder right now they just lost their job they're sucking their thumb you know this is the worst time for him yet for a wartime leader this they're excited they're excited about it yeah it's the best of times yeah if you're an entrepreneur right now the world's open to you you're an employee your world's dead to you what advice yeah an entrepreneur can create their own success yeah what advice oh sorry go ahead it's a job they're a peacetime Warrior remember see watch Patrick back Dave at dinner he's great later peace time later which one are you you know I mean no that's that's what it comes down to yeah that's true so this is the best of times for the wartime guys horrible time peace time right and and for the people that are the wartime people what is the the best advice you would give them now for the next year two years to capitalize on how do they make more money how do they make their Millions during this time what would you get who can't make money now you should hang it up reckon Millennials man you got you know I don't know where it is I got I got this iPhone if you can't make money with that hang it up you know like we used to say hang out the jockstrap you can't make money with an iPhone through social media through marketing you have the world at your fingertips and you can't make money the problem is between this year and this year it's not out here it's in here that's why you've got to choose your teachers wisely yeah you know so let me just say it again the best teachers are on YouTube so is the best porno take up your mind make up your mind which you want to listen to you know so yeah I'm just being real to you I hear you man no I hear you what's what's the best investment people can make then to to capitalize in this opportunity is the investment in education left here look if you're poor right now if it was called look in the mirror that always said to me says if you're looking in the mirror right now and you see a loser that's what you are you can't make money in this economy you've got change we are thinking you know you know hindsight is 2020 as I say yes yes so I was if you're looking you know you don't have any money you don't have a job your boyfriend or girlfriend has left you and uh suddenly goes like well how did it get here how did I get here it was a it was a great book called uh you know Gulag archipelago by Sultan Nathan so he gets thrown in this in a um concentration camp or a gulag in Siberia and he says how did I get here you know how you got there because he was a peacetime leader um didn't fight back so people are being sold adult go to school get a job pay taxes save money get out of debt buy a house a house is an asset and invest for the long term in a well-defined portfolio of stocks bonds mutual funds and ETFs and I do none of that and why do you recommend the opposite because I don't have to do that crap that's that's Kool-Aid go to school go to school what do they teach about money nothing get a job you pay the highest taxes pay your taxes I don't pay taxes get out of debt well debt money is debt after 1971 if you know your history of money your house is not an asset the house is a liability and why would it invest for the long-term in the stock market when I can make my own assets I don't need the stock market I'm not saying you shouldn't but I create my own assets I create my own cash flow every day I mean through your you mean through your business through your your right your creativity well I'm I'm an entrepreneur yeah most people are employees they're looking for jobs I'm just looking for so like right now should entrepreneurs invest in in the stock market do you think if you're entrepreneurial you should invest look find a stupid teacher's gonna tell you what to do I'm asking your opinion I'm curious as a teacher I don't give advice you know I wouldn't follow Warren Buffett either hmm you know why because he invests the money why would I let him invest my money I want the fun so what's the what's the investment you make the most in look please say what I'm saying yes I made a fortune in 2008 2020 I'm making more money I'm paying less taxes it doesn't mean I don't have problems but I'm prepared for this my biggest problem right now is because everybody's taking a vacation I Can't Get Enough product not selling out you know my cash flow gain is sold out it's selling out constantly all over the world all over the world I get royalties for my book sales my book sales are going through the roof right now so I'm making more information yeah there's two kinds of discipline there's internal or self-discipline and then there's external discipline so right now if the world's kicking your butt that's externality um and if you're self-disciplined the World's kissing your butt right now it's up to you so that's why I love the Marine Corps that's why I love going to military school and not a university because I got my ass kicked every single freaking day first word I had to learn at the Marine at the Academy mission mission is spiritual what's your mission and my mission has always been to serve people most people only give a [ __ ] is making money and throwing people that's called the Federal Reserve Bank Wall Street and all that I want nothing to do with them so I just don't play their game but you have to get smarter not to play their game so that's why YouTube has the best best teachers this guy George Gammon Matthew's great great teacher Patrick Beck David fantastic teacher you know uh Cartoon fantastic teachers so choose your teachers wisely that's all that's what I said because I I have to choose between my rich dad and my poor dad My Poor Dad PhD poor helpless and desperate and that's what he wanted me to do when I came back from Vietnam was get my masters are big at my PhD and fly for the airlines if I had done that you know my friends who flew for United they're broke you know why they're broke because Wall Street stole their pensions you know it's called an esub employee stock option plan the biggest Crisis coming up right now after this pandemic his pensions are going to crash that's right you got it yeah thanks why are they gonna crash I'll say empty yeah my God wake up wake up you know there's a better book than that that's called the creature from Jekyll Island by by uh G Edward Griffin it's a big book get it on audiobook and listen to it you know a couple of couple of 10 minutes a night or something the Federal Reserve panel has only one prop only one purpose is to keep the rich rich that's their only job so every time the market crashes as you notice money pumps in they pump the market they pump the prices up the rich exit and the poor and Miller class so listen to Dave Ramsey and Susie Orman and their advice is good for the male class don't am I wrong they're told to invest for the long term okay so what's happening to the poor and middle class with our 401k and IR right now are set that's like saying okay put the handcuffs on on the Titanic it's going down meanwhile the rich have got their G5 flying in to pick them up and get off the boat right because the problem isn't in the stock market the prop you know the problems of the repo Market corporate credit Market the consumer uh commercial paper market then I'll tell you that they don't teach you that in school so suddenly voila you know in September the Corp the shadow banking which is corporate credit and the uh commercial paper and the commercial I mean corporate credit and Commercial paper Market started to go bad in September oh suddenly pandemic oh that was interesting funny how that appeared you know so I'm not saying the pandemic isn't real I'm saying the real crisis it's a smoke screen for the rail crisis going on right now there's tealing your wealth through your pensions your 401k your IRA through Social Security or taxes or Medicare that's why we have socialism kicking in right now we have Bernie Sanders and ALC and Elizabeth Warren hardcore socialists but if you can see if you unders if you really have a financial education we're going from capitalists which I am and nothing wrong with the socialists you know there's there's some people 80 20 of the people need to be given money because they're that unable what employer is not able to so we should give some people money but not everybody so we're going from capitalism to Bernie Sanders socialism and Hillary and all those guys and they were actually going to Communism and you can see it right now because Boeing is asking for a bailout and all the guys asking for bailouts but this time the fed's going to take percentage ownership really yes that's communism central control of the economy I'm not saying it's right or wrong but it's coming but that's what they should teach us in school and our school teachers most of them are socialists most some of them are communists they want the government to tell us what to do they're really fascist you know they're really fascist a fascist wants to tell you what to do so you look at this look at this stuff what's it called social distancing you know that's you've taken away the First Amendment um the right to assemble PC political correctness is freedom of speech okay that's what's going on and then they're printing money under all this scheme so if you study real world peaceiness we've lost our freedom of speech that's what Stalin took away and social distancing is the right to assembly which is why there was a revolutionary war back in 1776 you know the the uh the Americans were had to go ahead in a church because the British would kill them if they were caught assembly I'm not saying that's right or wrong but you know most people are taught this yeah that's why I love going to military school versus University they teach you a lot of history probably we're taught military history um you know history is [ __ ] but you know To the victor goes history you know so the person that writes his wins the war writes history to justify their position today oh that's called his story you know as a loser doesn't get to tell their story so anyway that's where we're at and yeah I just leave it to your generation you guys are in the best position ever because you're still young your tech savvy which and the Baby Boomers aren't so they're all a lot of them are feeble and they're gone yeah so you guys have the world ahead of you and use this time to be creative and and get action and be bold and I think I saw something about in 2008 to 2010 some of the greatest companies or the biggest companies of today were started then Airbnb Uber uh you know all these other companies Bitcoin 2009. wow see I love Bitcoin what's your thoughts on cryptocurrency why do you love Bitcoin listen the coin is open source the FED can't touch it um you don't like the fan that creature from Jekyll Island the FED that is not a bank it's a cartel by the richest guys on Earth okay because it's just wake up you know so anyway the FED is a cartel so when I saw Bitcoin come out it's open source it's people's money gold and silver are God's money so I my whole objective is I go through my system of business but I'm buying gold and silver I store it in in other countries legally because you can't just move that stuff you have to move it legally and declare it I move my money illegally I'm going to get out of this country so I keep my wealth outside this country not because of my government it's because there's so many people you're going to see a lawsuits are going to go up because people are desperate they don't have any money so when the economy gets bad that's why you know have you been in an accident have you been hurt let me I'll come out sue them for you so if you don't have the right corporate corporate Angelic llc's C corporations as corporations offshore accounts you got money's gonna be stolen it's the real game okay your pensions you watched in a few years oh he did tell us our pensions are gone you know what's going to happen they're going to bail them out again because if you read this book here a creature it says bailout is the name of the game now back in the 80s there was a guy named Neil Bush let's see the Bush family George George Silverado savings when when when uh Neil Bush got in trouble George and George bailed them out but why do you think people are afraid to just talk about money to make decisions on investing money uh they're scared to go earn more why are people afraid of money in general do you think well yeah I could tell you for me like I was always scared of money you know and and I was terrified of it so so like if you look at still today like I look at the bill of everything it's a bill of everything if something calls something I want to know how much it was and so like how much is it like I'm going to ask that question whether whether it matters or not um it doesn't matter where I get in my life I don't think I'm ever going to be free of how much was that how much is the dinner how much how much was dinner how much was the tip how much was the code how much was the jacket what did you know me me and Elena like Elena's like it's going to be fine man like look what look look at what you've done we cannot spend this and I'm like how much was it I want to know how much it was because when I grew up do you had to know what things cost and so the point your question about money is is a terrifying thing because it's the one thing in life that you know the NFL is not going to give me the ball and and I'm never going to get a chance to golf I can't win in those environments but with money everybody gets money it's the one place where everybody gets it and now what do I do and I could lose it now so it's a terrifying concept like like power you know very few of us ever ever get any kind of influence or power right once you get it you're like hey what do I do with this you know am I going to do it I'm going to am I going to do the right things with it and so I think people withhold themselves because they don't We're Not educated about money we don't know where it comes from we have a lot of misinformation about it our parents terrified us you know money doesn't grow in trees uh save your money it'll save you all these these these things our parents told us because they were enamored or are encumbered with the same kind of liabilities around money right I don't know how to get it I don't know how to keep it and the the third the worst part that we're all at is I don't know how to invest it yeah so what I'll do is I'll some people get good at getting it very few actually fewer people at keeping it but probably more than getting it there's probably a big group in America that have learned how to keep money because they're afraid to lose it they don't want to invest it they don't want to use it they don't want to you know um you know Kanye talks about this how white people how white people save all their money and they just keep it they just store it like I had an uncle he buried everything he ever made he went in the backyard wow the other uncle was was uh he was he was a guy that bought he he worked hard very very frugal Italian to set and he would uh buy real estate but it was always buy low and sell hot he actually never sold anything but that was the concept Buy Low buy the cheapest lowest get everything on a deal if there's food stamps to be gotten you go get those food stamps if there's a if there's a government deal get it if it's Section 8 and the government will pay you pay it so both these guys different kind of mentalities were extremely Frugal my other uncle was uh worked in a Refinery he basically saved all his money paid everything off got out of debt that was their lifestyle my dad died when I was 10. so he paid all his debt off had everything paid and and so that's all I had right everybody around me was like get money keep it keep it don't use it you know but but you should invest but nobody ever learns that third one and and so I think we're just a bunch of people walking around terrified of this this apparent apparency of it's scarce right and it's not mm-hmm and and you know it's not there's nothing scarce about it didn't they just print more in the last week we we printed more I think we printed more money since the last time I was with you then they printed in the last 100 years that's crazy since I saw you last that's nuts so everybody should have got a pay raise and I know I know people are scared of the bubble right now they're like oh my God man things things have to um real estate's too much and stocks are too much none of this stuff has gone up equal to the amount of money printing so if the print is this high you know if if the print is that high and inflation that we're hearing about all the time is this high you'd have to assume it would have at least this far to go but but that's only because people don't understand when you print this much money you need to multiply times not because money money's printed and when you take your money to the bank when I take the money that you're going to give me for this great interview today and I take it to the bank I put as soon as it goes into the bank the bank gets notified and the bank now has the ability to loan that money out nine times nine times nine times so they don't keep money okay so if you put a million dollars with the bank today they're going to go make nine million dollars worth of loans tomorrow how do they make that how do they do it well that's what they're allowed to do by by their regulations they can take a million dollars that you give them that's why they want deposits so much and as they can go give nine million dollars in loans on that one that's right within a year two years one second and one day they can loan out nine million when you when you this is what people don't understand they and this is what our parents didn't understand okay so Bob goes out Bob or Betty goes out and they work and they make they do really well and they make 200 Grand a year maybe they're online doing online sales hustle hustle hustle self is trading their most valuable thing this is what I did for 25 years from 25 to 51 years old spent my most valuable asset time to get money terrified terrified every second of every day that's that's really what's Driven me the whole time was Tara like when you don't know you're going to be scared yeah so I'm going out to get money I won't I won't spend any of it because I'm terrified if I can't I don't know how to get more I'm worried I can't keep getting more so that I'd get the money and then I'd rush off and spend my most valuable asset time again to bring it to the bank yeah and then they go multiply it dude they're telling me to save it and they don't and so when I quit listening to every everybody that's got an opinion about money online or my neighbors or my uncles and I started saying what are they doing when I quit studying the influencers and started studying the banks Goldman JP Morgan KKR there's this endless list of these guys you start studying those guys Elon study Elon Elon doesn't keep any cash he thinks the whole thing's a joke which is probably right so so what does he do he reinvests everything he's not paying debt off he's accumulating debt but Apple has debt Google has debt Facebook has debt and they have cash reserves that that are the biggest cash reserves on planet Earth they could pay cash for everything why they don't why do they get debt when they have exactly why do they do that because because if I take if I take man you got a little white board right here man okay so if I take uh the Apple just did this okay I got nine I want to make a 90 billion dollar purchase I want to make a net and they're like yeah we got the cash for that in fact we have Cash Plus another 50 yeah we got plenty of cash to do this okay and then one of their people says okay bro you do that that is not a tax deductible event what we should do is we should go keep this and go borrow 90 billion really at like point zero zero five percent like they're gonna pay a half one percent for this debt maybe they pay one percent who cares they're like I don't care it's a tax deduction anyway interesting so now they have the best of both worlds they have their cash and they have debt now back in when I was growing up this debt would cost 10 12 15 18 it's so cheap now this debt because we print money we money is not scarce like our parents told us like when I was growing up I bet you I heard I heard at least from my mother from the age of 10 to 15. if I didn't hear this 500 or a thousand times I never heard it once we don't own the electric company turn those Lights Out Boy um I still have that going on today my dad my mom told me my dad would because he worked so hard dude like he was so like oh I finally got it I finally made it now I got to protect it he got stuck in the second piece keeping it you know it's an emotional keep and so it's it's not a rational thing because you're hoarding now you know still today man it's tough for me to buy blue jeans if they're not on sale I'm like this is stupid man like I'm just gonna wait right you know so so you know what I'm saying but it's really stupid that I even worry about it right and I'm not saying on the come up I think you should worry about it right but there needs to be where you can turn that switch off if you could give um you said there's a lot of misinformation and people just aren't educated on on money in general when they're growing up but there's just a lot of information I think they're misinformation is more it's not a financial illiteracy it's a financial it's almost like we've been hypnotized with the wrong set of rules so if you could only share three pieces of information to your kids or the the younger generation or anyone stuck on hoarding and keeping money what would you say would be those three things that you would share yeah to change the philosophy and mindset around the fear of money well I think number one is there's a bigger problem with hoarding in this country than there is with Spenders but what we see is what we hear is all the Spenders who are getting into debt yeah oh my God you know he did this and he's overspending but really really you have more of a hoarding issue than you have a spender issue number one I think people error more on saving and not knowing how to use money than they do on buying Richards and and Lambos even though you see all that around La and I know that's I know these people are I walk into Vegas and I sit down at a table in Vegas and I know the three guys playing they're they're playing 10 times more than I am like they're playing two thousand dollars a hand I'm playing 25 I'm like I know they I know I'm in a better position to to play what they're playing for but I can't do it so what the advice I would give people is like I would just assume that everything you know about money is incorrect everything every every single thing you know just assume it so you can get back to where so so so that you can actually have a white you can have a clean a clean board to top right from because if you go out right now and try to stack new information financial literacy on top of you know a toxic foundation and it's all going to get all that's why when I tell people don't go buy a house everybody freaks out they're like that can't be right that can't be right why because that's what you've been told about a house your whole life because the banks want you to buy a house now everybody just heard that's going to say I just saw you buy a house in Malibu right I can do anything I want now right here comes here again so yeah so but I mean I'm in a position now like if I want to buy that house in Malibu I can't but on the come up buying a house is not what you should do you should one I would scrape off that you don't know anything to I would uh I would invest everything you can in you it's tax deductible you never lose it you're the the person's personal appreciation will always be bigger than any other asset class I love that okay Bitcoin can't match it uh real estate can't match my personal asset appreciation will always it is infinite you know who knows I could be the next male Oprah right or somebody watching could be the next rock or whatever right like that what what is that appreciation value it's straight up yeah so the the first thing people should invest money in even use dead on is their personal Improvement if you told me you had to go borrow a thousand dollars to to go to one of your classes to become great and it had any potential at all like even a one percent chance of make putting you on the road to Greatness I'd be like dude go you go give Amex or VISA one thousand dollars right now I don't even care what the rate is right because the infinite return infinite beats 18 percent okay so number one invest in yourself number two I would invest in your business whatever your business is or your department your division is like the first 30 years of my career I didn't have I didn't own a company but but I did invest in my department even though I've worked for a company I had a secretary I didn't have the company pay for my secretary I paid for that I wanted her to work for me it was my mom by the way and so um invest in yourself you know like investing yourself didn't invest in your business or your departing your skill set if it's your company then invest in your company even down to zero like I wouldn't keep I wouldn't keep money around okay I wouldn't say for a rainy day I wouldn't have an emergency account I did all that why not because you don't need it you don't you need you need what you need is you need hustle you need other people's money you need to go knock on another door make another contact you don't need reserves of money uh so what you need is cash flow okay so how do we get cash flow so you by making Investments that's the third and other things other things that don't require my skill set so that would be the third piece of advice to start investing in real assets that cash flow number two that or B they cannot appreciate three that are provide tax shelters um and if you look at those three criteria Bitcoin doesn't cover it stocks probably don't cover it gambling does it right um that one gold done silver doesn't uh uh real estate real estate nfts don't because they don't cast that's why when you invested in nfts and you're like okay they're cool you're crossing your fingers hoping but you don't see a check with the real estate I'm sending you a check every month you're like okay I just got another check I just got another check I just got like you don't have to be in mystery right but the most important thing is that people need to like you've got you gotta so you gotta know that if you're in you live in America and you're having a money problem it is not because you're stupid and it's not because you're lazy it's because you have the wrong information the wrong information if you're losing at the table and there's people other people winning there okay you're just you just have the wrong data and I believe that Americans particularly Americans have the wrong data about money that they're financially they have been they have like met there's medical misinformation there is financial misinformation in the marketplace that is perpetuated by the Banks and the institutions because every time you operate under their hypnotism you benefit them not your family so if someone's got between a thousand and ten thousand and they're trying to multiply it to a hundred thousand what would be the steps they would take how long do you think it would take them to go from a thousand or ten thousand to multiply it and would you say put that all in your own personal investment would you put it invest in the business that you're in would you invest it in other things that cash flow appreciate and provide tax shelters what would you do if you got a thousand dollars I would like just keep you know keep investing in yourself until you got another thousand okay and and then invest in yourself you know now you got 2 000 investing you go go go you should start making money faster at some point you should start like every time you make an investment in yourself if I put fuel in my car it's supposed to take me further right right so if I invest in myself then and look you know there's things I bought that I didn't get a return on right away but I didn't quit investing in a course or a workshop or training or education because it didn't work or your health or I spent 17 years going to school none of it was any good for me but it did teach me it did teach me how to go to school you know how to study how to study how to go there how to how to complete a course like I completed college I'm not proud of that by the way you're not proud you completed it no no because it was still it was ridiculous I should have dropped out like I knew it was a bad thing uh major in accounting it's a good degree it's not like just some you know Business Degree right but you should have dropped out of it 100 because I I mean I would still I would still I would well I'd have a five-year jump on my career but the problem is I was on drugs so so you know physical actual drugs if I would have been on drugs I would have quit college because I would have had enough confidence in myself when you're on drugs you can't have confidence because you know you know you're drugged right so everything is second guess because like my self-esteem was like like through through the basement and so I'm like I need to quit college but everybody around me oh no you got to finish college you got to finish college I'm like what do I know I'm a drug addict and if I drop out I don't have a degree you're not going to hire me and yeah I didn't read more you know I didn't worry about that I just didn't have the confidence to follow my intuition you can't when you're on drugs when you're not yourself and so what do you do with a thousand bucks right right um you know I think you've just got to keep investing in you until like oh now I'm making three thousand dollars okay boom reinvest all that again but what we do is we start taking it off the table right and we save and we don't invest it so I think people just need to get on that that cycle of like okay I'm going to keep repeating this activity I'm going to reinvest some money in myself go to the workshop or whatever Monday I got to be hustling again until okay now I got four thousand dollars okay now I got five thousand now the income's starting to pick up income has to pick up in the income should be an indication that whatever you're learning is helping you that's interesting until one day you're like okay I have more money here than I can actually invest in myself I can't like there's nothing I can go to to get rid of this money you need to get rid of that money though all my free time is going to my workshops I don't have more free time to invest in me yeah I'm developing skills I'm working I'm earning more yeah now what's the next step yeah and that now now it would be okay I got to spend money on marketing I wouldn't go make a I wouldn't go look for an investment right now I'm gonna spend money on marketing now now now I'm gonna spend money on marketing to get me more leads and I would you know big mistake I made in my career was not spending more money on marketing because you turned what 50 when you really started investing I was 50 I was 51 when we started playing the social media game and and I was probably 56 55 or 56 when we started spending money on marketing wow yeah 51 when you started doing social media yeah yeah and I should have been spending money I should have been spending money when I was 25 years old when I was selling cars I should have spent money I've been spending money on ads but I was scared man so you want me to do not scared 25 years later 26 years later at 51. I started studying hey what what are all these successful people have in common you know whether it was the mattress dealer the car dealer the furniture dealer or Elon Musk they spend money man you know they spend money they spend a lot of money and they don't worry about money the way I was worried about it they use money you know they used it they didn't save it they didn't hoard money and the greatest companies on this planet today the ones that have just like some of these companies have lost money for 25 years look at Amazon yeah reinvest 1.7 million employees when I started I remember I looked at Ernst young I said I had a buddy that worked at Earnest how many employees you got he's like 240 000. wow and I'm worried about 10 people what am I thinking so so when I quit studying individuals and started studying people everything shifted for me when I quit trying to be the you know when I quit worrying about what Bob was doing or Pete or whoever and started saying hey man what is this big company doing because that also relieved me of being competitive with this guy Pete and started saying okay I'm gonna go do what Coca-Cola does that's what I'm about to play right really yeah how old were you when about the plan uh I was uh 50 maybe 55 the first one I bought it because because I studied what Coca-Cola was doing they bought planes I said why are they buying planes oh then I learned how they write them off and then I learned how they trade them every three years that's crazy so notice every three years I'm trading to play I'm getting rid of it replacing it with another one but what are they using it for they don't use it for pleasure they're not using it for Instagram photos right they're using it to go and set up headquarters in other countries wow you know so so that's when I wrote uh if you're not first or last because when I started studying these companies I'm like Coca-Cola's everywhere you can't go anyplace and not see Coca-Cola and and I was I was like this big I was always thinking about what can I keep and they were thinking about how many shells can we get on how many eyeballs can we see so that's when that's when it all clicked for me you know and then that goes back to that thing about the financial misinformation right it's like who am I studying and and that's that's when we started you know open up the funds for for I was at uh went to New York City to go walk in Goldman Sachs and JP Morgan's offices I wanted to walk in and see what it was like these are 100 multi-hundred billion dollar companies why is it hard for a lot of people to make more money do you think why is it a challenge is it just because they weren't built for it is because they're not ready for it they don't have the mindset they don't have the skills the the resources the the people in their life the you know the network and so I just want to say yes that's all that because I think it's so many things I this is where we're getting into I'm not equipped to answer that question and I fear I'll throw some biases in there but I I I'd have to give that one something here's okay here's a different question for you for those entrepreneurs that you guys work with that all of a sudden start to make more they implement this system they start bringing in more Revenue than they've probably ever made in their life right and then paying themselves more than they probably ever paid in their lives what do they need to prepare for if they start doubling their income tripling their income giving them a big bonus check at the end of the year how can they prepare themselves for the abundance yeah of good wealth that's a good one where they don't yeah uh self-sabotage mess it up then deal with all the people in their life saying gimme gimme gimme and hurting all their relationships which I've heard that happens a lot yeah yeah so this one I feel a little bit equipped the answer so you're prompting two or three points here so the first is you know I have been broke three times in my life okay so 21 25 and 31. um I wanted to be a millionaire by the time I was 30 I achieved that goal by 31 so I missed it by a year but what I left out of the goal I want to be a millionaire by 30 I forgot to say and keep the money I lost everything by 32. so I went from being a millionaire to 200 000 in debt so I know this pain all too well and so that's point one point two is you know for our EOS implementers we have over 450 as I talked about these people earn a lot of money it's a good gig that we do we are transforming companies making a lot of money and so what I do for them is the ones that reach a certain level and Beyond as I do a special full day session for them called a freedom forum and my sole purpose is to get them to not piss it all away okay Freedom Forum it's called the freedom Forum but this is strictly for Eos implementers this is for our inner sanctum our love-in that is eos worldwide and the reason I do it is because I have the givers the teachers the helpers of the world most I broke because we don't know we we're all trying to fill a hole and so we we just keep giving it giving a given a given keep it right right so I've watched so many of the thought leaders die broke and so I just really oh and I can't disclose a lot of them yeah um so in that I'm teaching them how to keep the money okay and so uh it's it's it's all about I jokingly like to say it's not not time to buy boats and cars and planes and so so it's it's this it's this mental shift and for me it starts with the end game that just says do you want to retire someday and most people are going to say yes which means you can live off your money and not have to work so let's most people are going to say yes to that okay and so what kind of a lifestyle do you want to have and let's hypothetically you say a hundred thousand dollar your lifestyle okay simple math yeah so then that means you need two million dollars sitting in account on that retirement day paying you five percent and you can live off that and then you need to factor in sit with a financial advisor they'll teach you this I don't take my word for all the math but the point is most people don't get that and they think that for some reason the money machine continues forever and it just doesn't and so it's a day of reprogramming their brains and teaching them and and so once they understand the math then they realize this extra 100 200 300 400 000 they have in their account the urge to go buy a bigger house buy a boat buy a car buy this they realize whoa I can put that toward the 2 million and so it's just a mental shift because most people are conditioned to spend that money for whatever reason and think that the money's going to keep coming in and it just doesn't always things change so does that answer the question I hope it does don't spend it all when you're making oh my God yes Sock It Away Sock It Away something away yeah yeah and read The Millionaire Next Door that's the best book I've ever read on the psychology behind it the people that you don't think are millionaires are millionaires and the people that are you think are millionaires are not millionaires that's true yeah who who wrote that book is that a two two gentlemen and I cannot remember their name okay but Millionaire Next Door Masterpiece it's kind of like the The Millionaire Next Door that has like a 20 year old car and you know changed my life in my late 20s for sure my dad never bought a new car he always bought used and had like this you know old oldsmobility with Drive yeah yeah he was always kind of reinvesting his money so and properties or whatever it might be so I love this what else do we what else do entrepreneurs need to know yeah well so let's so we're going on these five pieces of content we've been talking about right so entrepreneur Elite Rocket Fuel traction slash EOS EOS life now the fifth is like the AHA voila moment the icing on the cake and it's called 10 disciplines yes for managing and maximizing your energy and this is actually in the Eos life book so I decided to do something very weird and that's add a free mini book to the back of a book it's the last 30 pages yes and the way I describe it is there's nothing else you need to do with what we talked about again as an entrepreneur or any being all the way up to living your ideal life but then I call this one living your optimal life because if now you want to take it to a whole nother level um I believe we are all balls of energy okay and we are pure energy that's just my belief and I believe that we are all connected and so life will be pretty damn good if you just do everything we talked about but to add this last little piece um what happened with this is going back to the EOS conference that fourth year I didn't want to teach EOS life anymore and I got very vulnerable and so this only goes back two or three years ago this is not very maybe two years ago and I decided I am going to teach the 10 disciplines I have lived by in my life for two to three decades that magnify my energy 10x and so in addition to living this great life then there's this way to Boom explode your energy to a whole other level and so that's what it is it's teaching 10 very specific disciplines to live by every single day that will take your energy to a whole another level and I love it you've got a lot of great disciplines here knowing knowing yourself a hundred percent learning to say no often you know all these different things prepare every night I think a lot of people talk about the morning routine but the evening routine is something that I focus on a lot yeah which is what am I going into well first I reflect on the day and I share three things I'm grateful for with my girlfriend and she shares as well so we really focus on gratitude and appreciation I think when we focus on appreciation we appreciate into something greater we focus on all the good even if it was a stressful day it's like man but there's three powerful things that happen and that brings us into a peaceful night of sleep and then I start to really prepare of like what's the main thing I want to take on the next day yeah I look at what Am I who am I interviewing what's happening and I get myself ready to be focused for those 24 hours for those 18 hours or whatever and I think that is something a lot of people miss out on they they just go to bed you know they don't they don't reflect the other day they don't think about tomorrow and I'm not sure you're specific OU preparation strategy but you nailed it yeah so so if we could just go a little bit deep into it for about two minutes um you know and as I go into these way I look at it is you know for your audience they're driven people these are successful people and so this makes an assumption that you've got the basics down in other words you're eating right you're exercising you're sleeping well and you have work ethic okay then we're going to take and magnify all of that so you're a racehorse as I like to describe it and I'm going to help you run faster and longer so this discipline that you're on which is discipline number eight is is prepare every night yes and so my my business Mentor taught me this at 25 years old I've been doing it every night for now almost 30 years and you're exactly right it is before your head hits the pillow somewhere between five o'clock and you're head hitting whenever your day ends you have to sit down for 15 to 30 minutes and prepare for the next day and just lay out in a sequential in a linear fashion your day time blocking your meetings your appointments your calls your projects and so you're just laying out the whole day so that when your head it's the pillow you are you took the words out of your mouth those words are in the book right there you will sleep better yes so what does that do for your energy you will literally wake up with ideas and solutions to projects you're working on the next day because your subconscious is going to work on them because you prepared so well and your energy will go through and your creativity will go through the roof because you what happens is you wake up the next day and you hit the ground running and we and there are people that say oh no I'd like to wake up and let the day come at me you know so if you wake up and you start checking emails or you walk in the office you have lost all control of your day and so this is you taking control of your day and managing your energy and you will be I want to say twice as productive but who knows the math but you will be much more productive this is an interesting one right here you know in your I'm gonna go through all these but number one you say 10-year thinking it's really getting clear on the next 10 years and kind of where you want to be in 10 years and and reverse engineering in a process that you talk about in here which I think is really cool but let me say one thing to that okay because it's a little more robust than that and I learned this at 35 so I've only been practicing this one for 19 years but oh my God was it transformative and so the whole idea is to shift your thinking from now now this year Gotta Have It Now gotta get it done now this this most driven people most people listening we're so impatient we want everything now if you can shift your thinking to 10 you're thinking not as much 10-year goals but I I urge when I'm doing this talk you to write down a 10-year goal to get your brain to shift to that but it's thinking about everything in your life in 10-year time frames there's thinking out there that says 25-year thinking there's thinking that says 100 you're thinking I just want you to start with 10 right now and if you will do that all I can tell you what happened for me and what happened for me is this peace and calm came over me I felt less urgent I started making better decisions and ironically I got there faster when you're in that now now mentality you're making bad decisions and so when every decision in your life is now a 10-year decision oh it's just so so much better I can't even explain it to you and so obviously I go into more detail yeah I love that everyone that can hear my voice knows how to do better than they're doing and they may wonder why don't I do it it's because you're programmed to do what you're doing yeah and until you change the program nothing's going to change

Channel: Lewis Howes

Views: 263,734

Keywords: Lewis Howes, Lewis Howes interview, school of greatness, self help, self improvement, self development, personal development, success habits, success, wealth, motivation, inspiration, inspirational video, motivational video, success principles, millionaire success habits, how to become successful, success motivation, ray dalio new world order, ray dalio interview, ray dalio changing world order, ray dalio economy, ray dalio inflation, ray dalio debt cycle

Id: utcARXCjjlI

Length: 91min 36sec (5496 seconds)

Published: Sun Mar 27 2022