How to Get Rich (without luck, talent or a trust fund)

this little black book right here is very important to be it has all of the rules of money and they're very simple that not that complicated to learn but once you do you can actually start to stack cash i was in my twenties and i really didn't understand how to make money i was trying hard i was working hard but i really wasn't getting anywhere and once i learned the rules of money i started to understand oh that's what i'm supposed to be doing so the next fifteen minutes i'm gonna tell you exactly what these four rules of money are when i did to go from broke to ended up making my first million at thirty and then being worth thirty million dollars a few years later and i an idiot i was running around with a fork and i was sticking into different outlets i was learning my lessons the hard way and i wanna save you a lot of years and a lot of pain by just telling you what i did and what actually works so if you're somebody who today you don't love where we're at financially maybe you're not financially free and you wanna get to that magic number you wanna get a million dollars liquid in your bank count well this is the video for you i'm gonna tell you the four money rule rule number one you need one money making skill a money making skill is a very specific term here so when it comes to building wealth there's really only four money making skills you need to pick one of these the first one is selling so this is persuading people marketing closing deals the second one is making which is products apps websites videos books the next one is designing so having really great taste understanding form and function like a steve jobs type and the fourth is hunting so selling making designing hunting hunting is spotting opportunities it's finding great real estate deals or angel investing or figuring out the right stock to buy you need to pick one of these skills and mastering pick the one that's of most interest to you now mastering it is the hard part so you're gonna need to do it every day and the way to do that is let's say you wanna learn sales right selling is the is the master skill the money making skill you're trying to learn you need to go to a place where selling is what they do it is how they bake their money and when you get there you're gonna get a job and you might start at the bottom of the toe pole and what you're gonna do is you're gonna look around you're gonna ask who's the number one producer who is the number one salesperson here your job to go sit next to them and then double their input so if they're making a hundred calls a day you're gonna make two hundred they're not gonna be as good at the calls as they are but you're gonna double the input they knock on fifty doors you do a hundred you get the idea and you're gonna sit next to them and you're gonna study what they do you're gonna observe the difference between what they're doing and what doing and then you're gonna double it every single time that's what you're doing by day and at night you're reading books you're watching videos you're ob obsessed over the art of selling so you're nine to five is where you get your practice reps and then you're five to nine five pm to nine pm that's where you get ideas on how to improve i got to be friends with mister bi over the last few years and he's today the number one youtuber in the world every video he puts out gets hundreds of millions of views and he showed me and he told me he's like dude it at the age of twelve i decided my skill was gonna be making youtube videos in his case so he he wanted to be a maker he wanted to make youtube videos and every day he would open up a dictionary and he would flip to a different random word or whatever word he got he had to force himself to think of twenty video ideas using that word not all of them were good but he would force that muscle of idea generation because for youtube videos the idea the concept is done of one thing and then he would go try to make that video and he would suck at it he'd have a crappy thumbnail and a crappy lighting crappy audio each day you would try to make one of those things better in between every video it took him like i know hundred plus videos before he even got to ten thousand subscribers before he started making any money off this thing but he mastered the art of making videos warren buffett is another example he was a hunter hunting was the money making skill he chose and if you ever you know learn about buffett you'll learn that buffett used to take the entire moody's manual so a four thousand page book and i'm not talking about like a harry potter book this is a four thousand pages of just corporate financials essentially and he would read it cover to cover and he was all he was looking for was a single stock that he thought was mis price high value low price in his career he's looked at you know literally hundreds of thousands of businesses and in this most recent shareholder letter he said all of my success i can boil down to making about twelve good investing decisions just that out of hundreds of thousands of things he looked at he became a master hunter so you wanna master one of those four money making skills and that's a path to millions if you master two of them that's a path to billions so if you look at a steve jobs he had designing and selling he was one of the greatest design minds had great taste in design and then he also had the ability to tell great stories and be extremely persuasive and come up with marketing campaigns elon musk he has making and selling and that combo of sort of i can build and i can sell is one of the most overpowered combinations you can have because you don't need to become the top one percent of anything that takes a lifetime to become a true master what you need to do is become top twenty percent at two things that are not common so for example an engineer who's good at marketing you find a lot of engineers and you don't need to become the best engineer but you need to become an engineer who's pretty good at engineering and pretty good at marketing that's rare enough and you are super super valuable so your money making skills are the foundation of your ability to make money not just once but anytime you wish it's like a money button you can put then push at any given time so focus on skills before you focus on wealth alright rule number two don't rent out your time own equity what people to get wrong is they take the skill they learned and then they get hired for it and then if they're good at it they get promoted for it and they get a raise for it it sounds like well i guess i'm moving in the right direction i'm getting rich actually you're moving the complete wrong direction as nas tell says the two most addictive things in the world are heroin and a monthly salary if you do not want to get hired to provide services where you're trading your time for their dollars renting out your time is not a path to get rich even the people who rent their time out at a high price at a lawyer thousand dollars an hour they cap you know the rich lawyers they're all partners in the firm meaning they own equity in the firm meaning they get a cut of other lawyers work not their own so how do own equity well two ways either you're gonna invest but you don't have the cash to do that maybe or you're gonna start a business and so then the question comes what kind of business should you start how do you take that money making sale and turned into a business there's three things three words to know they all start with the letter c code content or capital so code is like making a website or app i'll give you an example my friend was a designer he used to make two hundred thousand dollars a year as part of a design agency he was employee he was making a good living and he was designing websites for clients client walks the door asked for something he would design it well he figured out he needed to turn a his skill into a product or a business and so he quit his job and he started making shopify themes so he would make a theme and he could take that same theme and he could sell it to two thousand different customers and by the way he didn't have to go in hand sell it to he would be asleep and they would be coming to his site finding a library of themes and they would buy one and now he pulls in two billion a year of cash flow he leaves half the here in bali half the year in japan is living his dream life because he understood the rules of money how to first make create a money making skill design and then how to turn it into a business because he doesn't wanna rent out his time he wants to own equity i'll give you another example content well let's take someone who's pretty big at content in the business world is a guy named alex he took his master money making skill which is selling and he'd turned it into videos youtube videos books and courses his last book launch she just did about a month ago his last book launch sold three million copies and with all the add on courses he added to it he made a hundred million dollars in a single weekend a hundred million dollars as one guy because he understood that he didn't need to sell his time in hourly chunks of consulting he needed to turn it into a business the last example is capital so what does capital mean well this is really for the skill of hunting usually but it can be used for any any of these so this is where you wanna take the money making skill you have and you wanna use it in the art of investing my cousin did this so my cousin had a job making six figures but he was sick he didn't wanna report to the office he didn't like all the politics he didn't like the boring meetings and so he quit his job and he decided i'm going to learn the art of hunting multi family real estate so like apartment buildings he spent two years mastering that skill under somebody else who had been doing that for a decade so he went and he learned and he looked he identified the highest output person and he doubled their inputs and then he left to do his own deals and in his first student year doing own deals they bought about forty million dollars of real estate using down payments that are equity from other investors who were happy to give him a cut because he was doing the hunting he was finding the killer deal the deal that would perform above market that had a good margin of safety he became a great hunter and he translated that into a business using this method of capital so takeaway here is if you only rent out your time you'll never get off the treadmill equity is the way alright let's take a quick break because gotta tell you story let me tell you about the first time i try to run payroll for my team i was using a traditional bank and you know the type it's got a jan interface it's built like a two thousand and two tax form and it was open only during business hours and i hit send in it froze they flagged the transaction they lock my account they put me on hold for forty five minutes and then they told me i gotta visit my local branch and that was the day i started looking for a new banking solution after asking a few founders what they were using i found out about mercury and so now my payroll is two clicks i can wire money i can pay invoices i can reimburse the team all from one clean dashboard that's why i use it for all of my companies and so do two hundred thousand other startup founders and so if you're looking at to level up your banking head to mercury dot com and apply in minutes mercury is a financial technology company not a bank bank the services are provided through choice financial group call them man a and evolve bank trust members fdic alright rule number three this is the hardest rule of all of them okay you're ready for it four letters wait you can't plant a seed in the soil and then the next day egg come dig it up and scream at it why aren't you growing yet right that's not how a plant grows you need to water it into something like need to wait let the thing actually grow because if you're doing what i've said right you have developed one of the four money making skills you have not just developed it you've spent two years really grinding and mastering then you have turned that into a business that you own equity in well now getting rich is actually inevitable but inevitable is not the same thing as instantaneous so the bad news is yes you're it's gonna take trial and error it's gonna take a couple years for you to get it all figured it out but the good news is you only need to get rich once in a lifetime once you get rich once as long as you're not you know totally idiot and you're gonna blow all you can just let that compound from there so the secret here is you have to be willing to wait now waiting doesn't mean just sitting around doing nothing then a phrase i heard that i love best this comes from naval ball he said be impatient with action and patient with results that combination patient with action patient with results is a killer un combination i would never wanna compete with somebody who was like that and that's a good test for if you should become a ps before i go to the next one if you're liking what's in this video and you actually want the notes from this the team has actually written everything down from this video so you don't have to write it down yourself you can get it it's in the description below alright let me keep going the final rule rule number four proximity is power even though i told you to wait you know that good things take time you're still gonna hate waiting i hated it you're gonna hate it too the good news is you can actually speed up the result how you can make the plant grow a little faster and the way you do it is you move literally you move so if you wanna be a tech founder you need to move to san francisco if you wanna make movies you go to la now it's not that you had to do it but if you want to increase your odds and you wanna go faster that's what you would do because proximity is power meaning you wanna be as close as you can to the white hot center of action you wanna go join the network of people who are doing what you do you wanna be around people who have the same dream as you who are in the same game as you maybe they're a little bit ahead and they can share what's going on maybe they're right where you are and you can all go grow together and learn from each other's mistakes so that you don't have to learn every single mistake the hard way yourself and when i say move i don't just mean move to the city i mean you move to a house with as many like minded smart ambitious interesting people as you can when i move to san francisco i moved into a house with six other tech founders who i didn't know and they weren't the best roommates and the bathrooms for stinky and all that good stuff but the more important thing was i was around a group of really smart ambitious people chasing the same dream as me and those became great friends those became connections those became know a warm introductions to investors you don't know exactly how it's all gonna play out but you're creating luck for yourself you learn faster it's like osmosis just being around them will make you think a little differently work a little differently you know if you hang out with a bunch of broke complain you'll become one if you hang out with a bunch of killers you will level up too there's a cliche that's been around for long time you know you're the average of the five people who spend the most time with well it's a cliche but it's true and it's been around for a long time for a reason so if you wanna change your life change your zip code i'll tell you a little story i was twenty four years old i was living in australia trying to talk start to startup i wanted to be an entrepreneur and i went to a local meetup up for other founders i thought i should get around some other founders and at the meetup they when week they asked me they said hey well will you be the keynote speaker will you give the the talk this week on stage and i think i was supposed to be flattered but no i was horrified i was like me twenty four year old dumb shit me i haven't done anything if i'm the smartest guy in this room i'm in the wrong room so the next week i literally pack my debt bags i bought a one way ticket san francisco with no plan i didn't even have a place to stay but i knew that i needed to get around people who were smarter and at you know the most ambitious smart group of people that i could who all had the same dream as me so let's recap if you've done these four things you've picked one of the four money making skills and you've done your two years mastering it you then don't rent out your time and fall down the career trap of getting hired and getting raises you take that skill and you start a business based on code content or capital then you wait and you're impatient with your action but you're very patient with your results and lastly proximity power you speed up your development by moving to the white hot center and getting around like minded people well congratulations you have flipped the odds the best advice in the world is to take actions that would make it absolutely unreasonable for you to fail let's take another example weight loss dieting right i've been a type person who's tried many diets failed many times and i think that's pretty common i would say that dieting probably has a failure rate of eighty or ninety percent let's pretend with your diet you just decided to do four things right you made four decisions so you ate clean whole foods high protein you exercise daily and you slept well if you actually did those things and you did the weight process where you let it let it unfold it is now actually unreasonable for you to not lose weight to get into great shape you have flipped the odds from ninety percent failure rate to ninety percent success rate and that's what we're gonna do in the world of business and getting rich is we've all heard the stats right ninety percent of new businesses fail well that's true startups individual business ideas do fail but founders don't if you keep going and your learning high you followed the full rules i just told you you will not fail i'll leave you with the steve martin story that always inspired me steve martin a great comedian he wanted to learn the ban joe and when he was young and you started learn the ban joe and he couldn't tell the difference in c chord a g chord and his teacher was like not gonna lie it's not like you have a huge natural talent for the ban and he was getting frustrated and impatient because he wanted to be great at something he wanted the result but it wasn't happening and it didn't seem like he was naturally like on track to get there but he made a little mindset shift he said you know what instead of trying to be great at the manager of today let me just make a decision he said i'm gonna play the band manager for forty years because i can't imagine that somebody who's been playing the manager for forty years still sucks at it and just by taking that long term time horizon and understanding that he could flip his odds of success from probably gonna be one of those guys who tries it it doesn't happen before for and i give up too well if i just stuck with this for twenty forty years i think it'd i'd great at it and by the way it never took forty years within a decade see similar actually won multiple grammy for his songs where he's playing the ban he changed his mindset around the ban and years later is actually winning grammy for it and so this is the formula this is the way i hope you take this i hope you'd be successful with this i have nothing but love for you i really rude it for you and so if this was helpful leave me a comment below and maybe i'll do a follow video it's a little more detail but these are the high level the four money room i feel like i could rude to where i know i could be what i want to put at all in it like a day's off on a road travel never looking back alright let's take a quick break because as you know we are on the hubspot podcast network but we're not the only ones there's podcast on this network too and maybe you liked them maybe you should check them out one of them that wanna draw your attention to is called nudge by phil ag and whether you're a marketer or a salesperson and you're looking for the small changes you could make the new habits you could do the the small decisions you could make that will make a big difference that's what that podcast is all about check it out it's called nudge and you can get it wherever you get your podcast