If you don't get in the game of home

ownership and you rent in your 20s and

you rent in your 30s, you're going to

turn around in your 40s and having not

built any net worth. And in fact,

homeowners in America are worth 40 times

more than renters. And I'm talking about

ordinary Americans.

>> But that doesn't mean that buying a home

made them rich, right?

>> It actually does. And I'm going to go

through that.

>> But am I not better off renting and

investing in the stock market? I want to

bust this myth because I have spent the

last 33 years of my life helping

millions of people with ordinary incomes

become financially free, including nine

years as a financial adviser at Morgan

Stanley and I got to see firsthand how

everyone who came into my office with an

ordinary income built wealth. And

there's a formula to getting rich, but

there's also a system to how you put

your financial life on autopilot in less

than 10 minutes. And it doesn't require

discipline, budget, and you don't have

to make a lot of money to get started.

But unless your financial plan is

automatic, it will fail. But more

importantly, I believe the next 10 years

will be the greatest opportunity to

build wealth in our lifetime. And yet, 7

out of 10 people right now are living

paycheck to paycheck. More than 50% of

Americans don't have savings. And most

people don't know where their money

goes. And in fact, when we ask people,

how much money would it take to totally

change your life? They say $10,000. Now,

how much money do you need to spend a

day to blow $10,000 a year? $27.40

a day. If you invested that a day for 40

years, you'd have over $4,424,000.

That would be life-changing.

>> But just before we get into all of the

specifics and the strategies, do you

have any specific advice to people that

are currently struggled with debt?

>> Absolutely. There's a very simple

formula to getting out of debt called

dole. I'd tell you to

>> listen, my my team gave me a script that

they asked me to read, but I'm just

going to ask you um in the nicest way I

possibly can. Thank you. Thank you first

and foremost for choosing to subscribe

to this channel. It is um it's been one

of the most incredible crazy years of my

life. I never could have imagined. I had

so many dreams in my life, but this was

not one of them. And the very fact that

these conversations have resonated with

you and you've given me so much feedback

is something I will always be

appreciative of. And I almost carry away

a sort of burden of uh responsibility to

pay you back. And the favor I would like

to ask from you today is to subscribe to

the channel if you um would be so

obliged. It's completely free to do

that. roughly about 47% of you that

listen to this channel frequently

currently don't subscribe to this

channel. So, if you're one of those

people, please come and join us. Hit the

subscribe button. It's the single free

thing you can do to make this channel

better. And every subscriber sort of

pays into this show and allows us to do

things bigger and better and to push

ourselves even more. And I will not let

you down if you hit the subscribe

button. I promise you. And if I do,

please do unsubscribe, but I promise I

won't. Thank you.

David, what has your mission been for

the last three decades?

>> I have spent the last 30 years of my

life helping ordinary people, people

with ordinary incomes become financially

free. And the last 20 years I've spent

helping people become automatic

millionaires. So, I love to teach anyone

at any income level, minimum wage,

living paycheck to paycheck. You might

be in debt. You might be struggling.

I've taught millions of people how they

can improve their life financially.

That's what I've been dedicated to. And

I spent 33 years total in the financial

service industry.

>> And is this conversation just for people

that are in their 20s or is it

applicable to everybody at every age?

>> It's applicable to everybody at every

age because whatever your age is, it you

know, look, Stephen, so many people are

living paycheck to paycheck right now in

this country. What's happening right now

is that seven out of 10 people are being

left behind financially. Seven out of 10

people right now are living paycheck to

paycheck. When you go into looking at

finances in America today, half of

Americans can't get their hands on

$1,000 in case emergency purposes. And

my biggest fear, why I updated this book

and why I decided to come back out one

more time and do another financial

literacy campaign is I'm afraid people

are being left behind. I think with AI

right now, the next 10 years is going to

be the greatest opportunity to build

wealth in our lifetime.

That's the good news. The bad news is a

lot of people being left behind. My goal

today, next hour is very simple. I want

to give you the system on how to become

an automatic millionaire at any age

level, at any income level. But what I'm

going to teach you is how to put your

financial life on autopilot in less than

10 minutes. Because when your financial

life is automatic, your habits work

automatically. And an automatic

financial life doesn't require

discipline, doesn't require a budget,

and you don't have to make a lot of

money to get started.

>> Why should people be taking advice from

you on this subject matter? What's what

have you done in those 33 years?

>> I've been doing this my entire life.

Right? So, if you go all the way back, I

started investing at the age of seven.

And how that happened is I had a

grandmother, amazing grandmother. Her

name was Grandma Rose. At 30, she made a

decision that changed the whole destiny

of our family. And the decision she made

was she want to be poor anymore. And at

30, on a very cold day on her birthday,

she turned to my grandfather and she

said, "We don't have any money. We're

living paycheck to paycheck and I don't

want to retire here. I want to go to

California. I want to be where it's

warm." And my grandfather said, "Well,

what do you want to do about it?" and

she's like, "We need to change what

we're doing or nothing will change." And

so my grandmother started saving 50

cents a week out of her paycheck. So 50

cents each because they were like middle

class people, right? Didn't have a

college education. My grandfather worked

in a plant. My grandmother worked in

retail. But she started saving small

amounts of money. And over her lifetime,

she became an investor. And she became a

self-made millionaire. My first book,

which you have sitting over here, was a

book called Smart Women Finish Rich. It

was the lessons that my grandmother

taught me. So, at seven, my grandmother

took me to McDonald's and she taught me

a lesson that would change my life. She

said, "David, you're sitting here eating

McDonald's and cheeseburgers and your

French fries and your milkshake." She

said, "I'm going to teach you today how

to be rich for real. You like to play

Monopoly. Here's my lesson today." She

said, "There's three types of people.

those like you who are here eating right

now, you're what's called a consumer.

She said the people over there who have

been working, they're called employees

and they've been working for minimum

wage and that's a very hard way to live.

She said they make at the time they made

85 cents an hour. And she said the third

type of person is the person who owns

this place. They're called an investor.

And she said, "Today, I'm going to teach

you how to buy stock in McDonald's so

that when you come to McDonald's, you'll

make money from everybody who's here.

When your friends come to McDonald's,

you'll make money from them, and you'll

be an owner of McDonald's." And she took

me down to a brokerage firm, helped me

buy my first share of stock at

McDonald's.

That moment changed my life because what

she made me realize is like everything

that we do, I'm seven years old.

everything that we do, there's an

opportunity to be an investor and own

that. So like at nine years old, I'm at

Disney. I'm like, "Hey, Mickey Mouse,

are you public?" So I was like not a

normal kid in that way because I started

investing at a young age.

But then I made a lot of mistakes. Then

I went to college. Then I got myself in

credit card debt. Then I believed all

the myths that young people often

believe. I believed I couldn't really

invest a lot until I made a lot of

money. So, in my early 20s, I was making

money but spending everything. So, I was

went from making nothing to making

$50,000 a year and I'm still broke. I'm

like, well, it's not enough money. So, I

went to $75,000 a year, still broke,

spending more. Then I got to $100,000 a

year in income. Lot of money, right? In

my 20s. Oh my god, I'm rich. No, I was

still spending more than I was making at

that point. I was a financial adviser

and al

>> that was my job. I was working at Morgan

Stanley helping people plan for

retirement teaching retirement seminars

and I met this ordinary couple that came

into my office at the age of 52, Jim and

Sue McIntyre. They had an ordinary job.

That year they had made a little over

$53,000.

Their average income over their lifetime

was $40,000.

And at 52, Jim put out all the

statements on a table in front of me. I

sat there and added them up and they had

a net worth of $1.8 million.

And I sat back at a table just like this

and said, "How did you do this?"

And they had just been in my class for

four weeks. They're like, "David, we did

a lot of what you talked about, but we

didn't have a budget because budgets

don't work." and they talked about why

budgeting didn't work for them. They

said, "We put everything on autopilot.

We saved money automatically for

everything."

And that was the moment that changed my

life. I realized that day as somebody

who was living paycheck to paycheck with

a high income. These people had half the

income that I did and they were able to

retire at 52. I was in my mid20s and I

realized that if I didn't start saving

and investing, if I didn't change,

nothing was going to change and I would

never have the financial freedom that

they had. And so I went home that day

and I changed everything in my life. Now

I had a lot of bad habits. So I had a

lot of things that needed to be changed.

You were the senior vice president at

Morgan Stanley when you stepped down and

you soon after wrote this book called

Smart Women Finish Rich. It begs the

question, what are the differences that

you saw through your process of

financial education that women face

versus men?

>> I started I was in business with my

father and we had a lot of older clients

and I would sit in on meetings one after

another with widows. So in the first

month of my career, I sat in three

meetings with three widows where the

husband had dropped dead suddenly. And

my dad at the time was teaching these

women how to read their brokerage

statements, how to write checks, and how

to know if they would have enough money.

And I thought, "This is crazy." And I

said to my dad for the third

appointment, "Dad, what do you what

what's going on here?" And he's like,

"Well, what do you mean?" I go, "Well,

you're teaching these women when their

husband has just died how to handle

their finances." And he said, "David,

not all women are like your grandmother.

Your grandmother was a rarity." And I

said, "Dad, that's crazy. I'm going to

go out and teach a class for women and

money." And when I started teaching the

class for women money, here's what I

learned. Here are the things that make

women different than men when it comes

to money. Women, first of all, live

longer than men, which means they need

more money than men do. The average age

of widowhood in America when I wrote

that book originally was 57, Stephen.

Now it's 59.

Okay. You do all these shows on

longevity. It seems like everybody's

living forever. They're not. Okay. The

average age of widowhood in America is

59 years old.

>> When you say widowhood, you mean the age

in which a woman becomes a widow.

>> Exactly. They're married and they lose

their husband.

>> Okay.

>> Okay. So, so women are often wiped out

when that happens financially. Second

thing is that women are hurt more than

men when it comes to divorce.

The third thing that affects women is

that they work fewer years. I'm like,

these are just the the the the

statistical realities. Women work fewer

years than men because they have

children. So that's an average of

somewhere between 7 to 11 years less.

And that's less money going into social

security, retirement accounts, and it

affects their earnings and often they

earn less. So what I have taught for

third nearly 30 years now is as a woman,

I don't care what your situation is. I

don't care if you're an entrepreneur. I

don't care if you're a stay-at-home

mother. I don't care if you're married

to local bank president. I don't care if

you're married, singled, widowed,

divorced. As a woman, you have to be in

charge of your finances. Period. Drop

the mic.

End of discussion. You can't delegate

your financial well-being to anyone

else. You have to be in charge. Now, I

will also tell you, Stephen, that women

make better investors than men. They

they make better investors than men

because often women don't trade like men

do and they are they do more research

before they invest and their performance

is better. They're way better long-term

investing than men are.

>> I heard some stats once upon a time that

men are

the majority of the gambling addicts.

>> Well, I'm sure they're the majority of

the gambling addicts. And also when you

look at trading because trading's become

a very big thing, but trading's always

been a thing.

>> Trading meaning

>> trading like trading stocks, buying and

selling stocks. Now it's buying and

selling cryptocurrency, buying and doing

selling options. All these things are

primarily men doing it and they don't

make money because the bulk of people

who trade lose money day in day out in

year out. I teach a philosophy which is

this. Your money and your investments

should be boring. Your life should be

interesting. Your investments should be

boring. If someone's coming to a

cocktail party talking about their

investments and it's exciting,

something's wrong with it.

>> Why?

>> Because sexy is how you go broke when it

comes to money. Boring is beautiful when

it becomes when it's about your wealth.

So, even driving over here, my son was

just like, "Dad, why aren't you trading

Tesla stock?" I'm like, "You know why

I'm not trading Tesla stock? Because you

can't make money trading. You got to

figure out when to buy, when to sell. I

want my kids investing in index funds. I

have my clients investing in index

funds. Boring is beautiful when it comes

to money.

>> Before we get into the real specifics

and the tactical strategies and um we

think about a bunch of the sort of

things you said about debt and credit

cards and saving and getting out of debt

and how to become wealthy and an

automatic millionaire. Is there anything

we should discuss as it relates to the

broader context of what's going on in

the world? Whether it's wealth

inequality, whether it's the amount of

people that are living paycheck to

paycheck, what I'm trying to get a

picture on what the the state of

financial wealth looks like in the

Western world.

>> Yeah. Well, so let's talk, you know,

when people talk about economies. Here's

here's the economy that matters in my

opinion. Your economy, meaning the

person that's listening, the economy

that you're in control of is yours.

You're not in control over what's going

to happen with interest rates, what's

going to happen with geopolitical

things, what's going to happen with AI.

The only economy that you can control is

yours. Now, here's the question.

Are you working?

Most cases, the answer is yes. The

average person will work 90,000 hours

over their lifetime. So, if you are a

dual income household, you're going to

work somewhere between 90 to 200,000

hours, the two of you, over your

lifetime. You're going to actually make

millions of dollars over your lifetime.

The question is with your own economy,

are you going to keep any of the money?

And the sad thing for many people is

that they're not. I I say most people

have what I call a no plan. Money comes

in, money goes out. And they say, "Well,

I don't know where the money all went."

And I go, "That's called a no plan." A

person who's an automatic millionaire,

the moment money comes in, they have a

plan for exactly where it's going to go.

And it starts with paying themselves

first.

automatically.

>> A lot of people listen to this and if I

go back if I go back just over 10 years

in my life, I would have been sat

listening to this conversation in £7,000

of debt. And I would have thought, God,

like I'm becoming a millionaire, that's

a that's a million miles away, no pun

intended. I to become a millionaire, I'm

going to have to earn so much more

money. And at the time, I was working in

call centers. It it would have just felt

so far away. And I say, you know, people

are struggling to feed their children,

let alone become a millionaire.

Is it far away for the average person?

>> It's far away if you don't know the

strategy. There's a strategy to getting

out of debt. There's a strategy to

building wealth. There's a system.

>> How much of it is just earning more

money? Because when I have these

conversations on my show, I think the

surprisingly untouched territory is we

don't teach people how to become more

valuable so that they can earn more

money. A lot of it's about like index

funds or savings, whatever. But how much

of it is just like I need to get higher

valued skills in the market?

>> We know for a fact that making more

money doesn't make you rich. So, so

people can go, as I told you earlier,

like from $100,000. They can go from

50,000 to 100,000 and still be broke.

They can go from a h 100,000 to 200,000

a year and still be broke. They can go

from 200,000 to 300,000 and still be

broke. In the US, when you take

households that make $150,000 a year,

one out of three of them are still

broke. When you peel back the curtain

and you ask why is that? Well, we know

things cost more, but we also know

there's massive lifestyle creep, right?

you get you get around other people who

are making more money and then you spend

more money. And the reality is these

phones are designed to get you to spend

everything, right? Today with the

algorithms, there's better technology

today than there's ever been to get you

to spend more money. And nobody wants

you to spend money once. They want you

to spend money for a lifetime, right?

It's a lifetime value of a customer. So

there's a battle for our income. And

everyone wants a piece of it. It starts

with the government. like you go to work

and you go to work at 9ine and you

actually work from nine o'clock to 12

for taxes. Now, this is an important

lesson actually. The government doesn't

ask you to budget to pay taxes. They

take your taxes from you automatically.

They take social security from you

automatically. They're they take the

money from you automatically because

they know you won't have anything to

give if they don't take it from you.

Then people work from 12 to about 3:00

for housing and food and then from 3:00

to 5:00 for all the rest all the rest of

things.

The people who build wealth in America

and really all over the world, they do

something different. They keep the first

hour a day of their income.

>> What do you mean by that? So what that

means is whatever you earn, you could be

making minimum wage, you could be making

$20 an hour, $30 an hour, $40 an hour.

Whatever you earn, the first hour day of

your income has to go to you. You're the

first person who gets paid.

>> And you mean you have to save it, invest

it.

>> You have to invest it. So how do you

invest the first hour of your day

without paying taxes? The answer is you

pay yourself first using a 401k plan.

So, if you have a job with a retirement

account, 401k plan, you sign up and you

use that plan. Now, I can't just stop

right there, right? Because because it

sounds so simple, like, okay, I'll use

my plan. No, you have to know the

formula to using your plan to be rich.

We know after 40 years now exactly what

you need to do if you want to be a

millionaire. I can tell you how to

become a millionaire starting in your

20s so that you're done by the time

you're in your mid-50s. You save a

little one hour of your income is 12 and

a.5% of your gross revenue. I went on

online today to look at what's the

latest statistics with 401k

millionaires. The new stats that just

came out from Fidelity. There are

654,000

people in Fidelity 401k plans that are

now millionaires.

>> What is a 401k?

>> Okay,

>> because you know we've got a lot of

global listeners. There's different

types of 401k in every country. So in

the US, a 401k plan is a retirement

account. It is a retirement account that

the company has set up, right? And it

allows you to put money away tax

deductible. They call it pre-tax. In

most countries, you have a deductible

retirement account, but it depends on

the country, too, right? Like in Canada,

it's a different type of plan than it is

in Australia, than it is in Italy, than

it is here in the UK. Almost every

country though has some form of

retirement account and has the ability

to put money away automatically. Here's

the problem, and I'll use the US

specifically because it's where I do

most of my work in the US. Those who

have a 401k plan,

the ones that are millionaires, what

they did, here's the formula, the exact

formula. They saved 14% of their gross

income and their employer had a small

match on top of that. And then how they

invested the money is key because it's

not enough to just put money in these

401k plans. You have to be invested for

growth. And growth means stocks, right?

So you'd have to have and and the actual

specific allocation in these 401k

millionaires I just talked about was

about 70% stock and 30% bonds.

Okay. Now, what are people doing that

aren't achieving this? Well, the average

American saving maybe 3 or 4%. Maybe 5%

if they have a 401k plan. People who

don't have 401k plans in many cases

aren't even doing this. They can they

can open up an IRA account, but in most

cases, they're not doing that. So, the

whole secret is

not budgeting, not using discipline,

having the money move right from your

paycheck. paycheck gets deposited

automatically and then it moves the day

it hits your bank account automatically

first for retirement. Then later we'll

talk about building a security account,

building a dream account. The key is

that the money moves automatically.

So in the United States now there's by

the way 24 million millionaires now. So

we've seen an increase of 8 million

millionaires to 24 million millionaires

in the US in just 20 years.

How did they do that? There's two

primary escalators to wealth. That is

stocks and real estate. And if you're

not in stocks and you're not in real

estate, you are being left behind.

>> When you say real estate, does that mean

having a mortgage and owning a h home?

>> It's owning a home or owning REITs?

>> REITs.

>> REITs. Real estate equity investment

trusts. So, that's another way to buy

real estate without actually having to

own the home, but you don't get the same

level of returns.

>> I mean, this is um this is one of the

hot topics of conversation we've had on

this show several times is many of my

guests that are sort of financial

advisers say that owning a home is a bad

investment. I think from what I

understood from the research and from

reading your books that you feel

differently about that.

>> Yeah. I mean I I couldn't feel more

differently when we look at where is

wealth created in the United States and

also abroad. It's in two places. It's in

home equity and it's in the stock

market. So when you look at housing and

you take someone who owns a home and

we'll talk about I know it's hard to buy

homes right now but when you look at

people who own a home versus people who

rent homeowners in America follow this

for one second. Homeowners in America

are worth 40 times more than renters. So

the average homeowner in America today

is worth over $400,000.

>> But this doesn't establish causation.

I.e. that doesn't mean that buying a

home make made them rich, right?

>> It actually does. And I'm going to go

through that here. So the average renter

is worth $10,000,

right? So why why does buying a home

build wealth? and how much wealth in the

United States is now in home equity.

Wall Street Journal just ran an article

on this came out two days ago. There's

$34 trillion now in home equity in

America. This number has gone up 90%

since before co

the other money is in retirement

accounts which is 60 70% in stocks.

There's $45 trillion now in retirement

accounts. So those two things alone

equal $80 trillion dollar, right? Like

when you want to go like where are the

breadcrumbs? Where is wealth being

created? It's right in front of us. Now

the problem that we have in the United

States, but also look, we're here in

London right now. Problem we have in so

many cities is that real estate keeps

going higher and higher and higher and

people's incomes are not keeping pace

with the cost of buying a home. So, when

someone comes on a show like this and

says, "Look, you don't have to buy a

home. It's cost more to have a house

than rent. You, you know, I I watched

one of the shows. I won't say who it

was. It doesn't matter. They all say the

same thing. Don't buy a house. You'll be

trapped. You'll have to pay you'll have

to pay real estate taxes and you'll have

to pay insurance and things break." They

go through all these expenses

and it it makes it sound like, "Oh,

yeah. If I rent it'll be cheaper." No.

Who who do you think pays these expenses

when you rent?

You do. The landlord passes the cost of

these expenses on to the renter

ultimately. Why do they do this? Because

people who buy real estate buy it for an

investment. They buy it for an

investment. They're not they're not

subsidizing these costs. So, it's a hard

thing to hear and especially when you're

young. Like I have a a son who's 22.

He's in Chicago. He's going to move to

New York City. It'll be extremely hard

for him to buy a place in New York when

he starts working right away. Just will

be probably won't for two or three

years. A lot of young people when they

move to a major city, they can't afford

to buy right away. When I came out of

college, like you, I was in credit card

debt. I had $12,000 in credit card debt.

I remember opening up my bills and

having the room spin and thinking, I'm

never get out of credit card debt. how

am I going to buy a house? But I did.

And in fact, I didn't buy a home when I

was young by myself. I bought a home

with a best friend. So, how did I get my

first house? First house we bought was a

quarter of a million dollars. We put 10%

down and my best friend and I, Andrew,

we split that down payment. So, we each

put $12,500 down. This is how we scraped

it together. The house was a complete

fixer upper and we didn't have enough

money to make the mortgage payments. So,

we rented out bedrooms and we had

friends rent bedrooms and that helped us

cover our mortgage. We scraped it

together and that's what a lot of people

do when you're young. But if you don't

get in the game of home ownership and

you rent in your 20s and you rent in

your 30s, you're going to turn around in

your 40s and having not been built any

net worth. When I wrote the automatic

millionaire 20 years ago, two things

have happened since then.

The stock market has gone up in 20 years

600%.

>> Okay? So, if you had a $100,000, just

that is gone to $600,000.

If you bought a house, the house has

gone up 400%.

So, when you read this book with all

these, there's a a whole chapter of

updated success stories. There are a lot

of ordinary people that started saving

5, 10, 15, $20 a day, bought a starter

house, and today they're millionaires.

>> So, am I not better off renting and

investing in the stock market

versus buying a house? Because obviously

when I when I when I buy a house, I'm

paying a premium on the house so that I

can get a mortgage. I want to bust this

myth because what happens is people come

on they go the stock look I can tell you

right now the stock market over the last

20 years has averaged over 10% annually

people go the returns are better in the

stock market than the real estate yeah

but that's not applesto apple comparison

why

you buy a piece of real estate when you

buy a home people don't typically pay

cash for their first house they put down

20% and they borrow the other 80%. So

you take like an example of a take a

$200,000 home. $200,000 home you put 40

grand in. Home goes from $200,000 to

400,000 in 10 years. This has happened

to so many people in the last five years

since COVID. There are markets all over

the US where housing prices have gone up

100 to 200%. So a person buys a $200,000

home, they borrowed 80%. It's doubled.

So they've made 200,000 in profit. They

didn't put in 200,000, they put in 40.

So, they got a five times return on

their down payment. They go to sell

their house.

They don't pay taxes on the gain because

when you own a home, at least in the

United States, you own a home for over

two years. If you're single, you get

$250,000 in taxfree gains. If you're

married, you get over half a million

dollars in taxree gains. You get tax

deductions on the mortgages. So, what

happens is people come here and they go,

"You know what? You shouldn't be you

shouldn't be tied down. You need to be

flexible when you're young. You don't

want to have the responsibility

and you should take the extra money and

you should put it in a mutual fund. And

you know what happens in the real world,

Stephen? People don't do that. They rent

an apartment that's nicer than what they

can afford and they spend all their

money and then they turn around in their

mid30s and they have no equity because

they haven't bought anything and they

also haven't saved money.

It is an absolute freaking myth that

people take this extra money that they

could have used to buy a house and

they're going to put it in the stock

market. They don't do that. And that's

why also, by the way, corporate America

got into the game of buying up real

estate all over America, houses, and

building apartments to rent to an entire

generation, hoping these people never

buy

this. Like 10 days ago, Trump came out

and basically said he wants the

institutions out of buying up all the

homes in America. Why does he want to do

that? because he because he recognizes

how serious of a problem it is to have a

generation of Americans who are renters.

I'm telling you, when you look at

average Americans, average, I'm talking

about ordinary Americans. When you look

at where their wealth is, it's in home

equity and it's in the stock market. And

this is the last thing I'll say,

generational wealth is created for

better or worse through home equity. So

when you look at why you know you asked

the question about causation

if a family doesn't buy a home the

likelihood the next generation can buy a

home is very low because it's this when

someone dies

the money that is in the house that home

equity is often what transfer transfers

to the next generation helps the next

generation buy a house. I was looking at

some stats here because I want to what I

want I wish I could sit

>> sit down all of the guests that have

been on my show that have had a

difference of opinion and have said that

buying a house is a bad

>> it could be a really interesting

conversation. Right.

>> It would be a really interesting

conversation. What I've done as an

alternative to that approach is I've

pulled up what they've said

>> and I'm going to give you some of the

things they've said just so so you can

rebuttle them um and have your say on

them. One of the things that they often

say is that long-term real

inflationadjusted home price

appreciation in the US is about 1%

annually and one of my guests cited

Robert Schiller as the evidence of that.

After maintenance um which usually

equals 1 to 2% um property taxes which

equals about 1% insurance and

transaction costs the net real returns

approach roughly zero on average. So

when you say housing is a great

investment, are you referencing the

gross appreciation which is the the the

total appreciation or the net returns

after taxes, maintenance, insurance, and

selling costs?

>> So when you dig into these kind of

numbers like this,

what they are is they're numbers, but

they're not real world, right? And so

like when you when you talk to someone

who owns a home today and they've owned

it for 20 years and you ask them how

much of your net worth is now in the

equity in your house

over 50% of their net worth is in their

house. You will see people on your

YouTube channel that literally if you

read the comments and I'm sure you do. I

do

>> where people say it's not true. There

was I read a comment yesterday on your

YouTube page. All I know is I bought a

house and it's gone up in value three

and a half times and the rent when I

bought the house was $1,200 and the rent

today to buy that if I had that house if

I was renting it would be $4,000.

So the thing is you have to understand

is that rents always go up, Stephen.

Like I lived in New York City for 18

years.

When I moved to New York City in 2001,

a really nice apartment, a nice

apartment was like $6,000 a month. When

I left New York, that same apartment was

$25,000 a month. Follow the follow the

insanity of that math. Now, that

apartment went from being $2 million

apartment to a $5 million apartment. So,

I could have been renting it, but in my

case, I owned it and it went up in value

$3 million.

So, I have friends who have been renting

in New York for 20 years. They have

built no net worth. I have no vest

interest in this conversation. Meaning,

I don't sell real estate. I'm not a real

estate agent. I'm not selling real

estate. I've just seen in the real world

how people have built wealth. the the

the McIntyres in this book, the

automatic millionaire, when they came

into my office and they were worth $1.8

million and he was 52 and able to retire

having earned an average of $40,000 a

year.

All their money wasn't in the stock

market. They had bought a home in San

Leandro, California, what he what they

called a middleclass neighborhood. Their

home at the time was worth about

$300,000.

They had paid their mortgage off and

they had bought one more house on their

street. They rented the first house.

They bought a second house on their

street. They paid that mortgage off. And

so they owned two homes free and clear.

One house they got income from. One

house they lived in with no debt. And

then they had saved money in their 401k

plan. So, if I was a young person or not

even a young person, a middle-aged and

older person who took my down payment

that I was going to pay into the house,

if let's say it was say my down payment

was $20,000 and I put that into the S&P

500 instead over the long run, won't

that grow larger than the total home

equity potentially?

>> Here's why the index fund theory doesn't

work.

You can't live inside an index fund.

You can't live inside a mutual fund. You

have to live somewhere as long as you're

alive. Here's what people should do.

Take a look at what you're paying in

rent.

Now, ask yourself a question. If I'm

paying 5,000 a month in rent, which lots

of people are, right? Do you know people

paying 5,000 a month in rent?

>> Yes.

>> Okay. So, they're paying 60,000 a year.

Let's take that number.

>> Yeah.

>> So, over 10 years, they're going to

spend $600,000 in rent.

Yeah.

>> If the rent doesn't go up,

>> Yeah.

>> in 20 years, they're going to spend 1.2

million in rent. If the rent doesn't go

up, in 30 years, they will have spent $2

million in rent if the rent doesn't go

up. But the rent does go up. So, the

question you just have to ask yourself

is, am I going to take all this money

that I'm spending on rent and never

build anything?

And if you really believe that renting

is better than owning, then you should

still consider the idea of buying

something than that somebody else rents.

Cuz I promise you, somebody's getting

rich in the transaction. If you're the

renter, you're not the one who's getting

rich in the transaction of renting. It

is a great short-term solution renting.

It is not a great term long-term wealth

building solution. The other thing that

people often talk about and you you

cited earlier is the mobility that

renting gives you.

>> Yeah.

>> Your son was here a second ago. He's 16

years old. Yeah. Soon he'll be

>> at the age where he's got his own place

and he's thinking about different career

opportunities and oh my god AI is this

big thing. So he might want to go to San

Francisco. Then he might want to go live

in Florence and wherever else. if he's

bought a place, there is a interesting

sort of psychological but also financial

component to the fact that it makes it

harder for you to move with the

opportunity of life. And if we are if if

what people say about the future of work

is true, that we're going to have many

more careers in our lives than we did in

the past, one might assume that we're

also going to be more mobile. And so, is

there an argument to say that buying a

house might hurt my prof professional

opportunities, my ability to pursue

professional opportunities? The answer

is possibly, right? But here's the thing

about rent. Rent's, interestingly

enough, a major obligation, right?

Usually, when you go and you do a lease,

you lock yourself into a one-year lease.

Sometimes you lock yourself into a

two-year lease.

When you buy something, and this is

assuming that you have the money to buy

something, Stephen,

look up because you've got all the data

at your fingertips here. Look what the

average length of time it takes to sell

a home in the United States. Just just

Google that right now because what I

will tell you is in certain markets you

can put your home on the market and you

can sell it in less than 90 days. Now

some markets you can sell your home in

less than 30 days. In many cases

you actually have more flexibility when

you own something than when you rent.

And that's if you want to sell it. It

says the average time from listing to

sale is about 47 to 62 days from listing

to closing in 2025, including 16 days on

the market and 30 to 45 days to close.

>> That's called less than 2 months.

>> Even in hot markets, the process from

putting a house on the market to legally

selling it can take 1.5 to 3 months.

Meaning home equity isn't a quickly

accessible investment.

>> Yeah. But do you think that's pretty

quick? 90 days.

>> No, it is. It is quick. I mean it takes

takes you that amount of time to get out

of a lease.

>> Exactly. So now so so here you've got a

piece of property that you can turn

around and sell in less than 90 days.

Now this is the US. You can't do that.

Like for inance I live in Italy. That

could be very hard to do that in Italy.

But in the US you've got something

that's in a good market. It's liquid.

The other thing is you can rent it,

right? You're you're actually not

trapped. If if you start to build equity

in your home and you pay your mortgage

down slightly, next thing you know

you're able to rent that property and

you can still move. Today, people are

taking their homes and they're Airbnbing

them. What I really want for people is

the chance to be financially free.

There's also an age at which it doesn't

matter if you own. You know, once you

start to get older and you've built

financial security, you get in your 50s

or your 60s or 70s and you just want to

travel and you don't want to own

anything. That's a different stage of

life. So, the question just becomes

the money that you make. I go back to

the 90,000 hour comment. When you make n

when you work 90,000 hours over your

lifetime,

what's your plan to keep some of this

money?

You have to have a pay yourself first

plan. That has to be your number one

priority is that when you earn money,

the first person who you're going to pay

is you. If you say, you know what, I

watched Stephen and I saw David and I've

seen a bunch of other people on his show

and I'm not going to buy a house. Okay,

then

you have to pay yourself first more. Now

I go around the world for the last 30

years starting with Oprah with the

automatic millionaire. I launched this

book on Oprah and I talked about you

have to save 1 hour a day of your income

and people will get on these social

media boards and be like I can't save

10% of my income.

They'll I can't live off 90% of my

income. It's not possible. I have to

spend all of it. Right? Well, then that

person who's renting and not buying a

house, which is for savings, is clearly

never going to save. So, the other thing

about buying a house is it does require

force savings because when you use have

a mortgage payment, part of that

mortgage payment is paying down your

debt. And I teach you how to use a

bi-weekly mortgage payment plan. So, you

take a 30-year mortgage and you pay it

off five years earlier. And doing that

can save you, depends on the size of the

home, can save you $50 to $100,000 just

in interest payments. You talk about

having a savings mindset.

What is a savings mindset and how does

one go about saving if they are one of

those people that says, "Listen, I'm

barely getting by as it is, David."

>> Yeah.

>> How how the hell am I going to save

money when I'm actually increasingly

getting into more debt right now?

>> So, the first thing is you have to find

your money, right? So, what I what I

find, Steve, is when I talk to people,

most people don't know where their money

goes. Literally, they don't know.

They're like, I'm like, "How much money

you spend a month?" Well, I'm not really

sure. How much money you spend a year?

Well, I'm not really sure. You need to

be sure. So, you should be doing

something to track where your money

goes. Now, you can be sophisticated. You

can use apps. It will track where your

money goes. You can also take out a pad

of paper and I give people a 7-day

financial challenge for seven days. Just

bring a little pad of paper with you and

write down every single day where your

money goes. Now, why do I want people to

do that? Because most people today are

spending money unconsciously. I go back

to these phones. The fact that I don't I

don't even have to carry a wallet

anymore, right? It's just click click

click and pay for things. We've lost

touch with spending money. So, when

people start to see what they're really

spending, it's a wakeup call. The

biggest thing I've been sharing lately

is what does it take to blow $10,000 a

year per day in terms of spending? How

much money do you need to spend a day to

blow $10,000? Now, show us the per here.

Now, we happen to have these are we have

pounds today, right? So, um so I I'm

holding Stephen right now. I'm holding

what is known as a brick.

So, I don't know if your staff told you

how much I'm holding here. You know how

much what you guess I'm holding?

>> It looks like maybe $5,000.

>> Okay. So, this is a life-changing amount

of money, Stephen. This This is $10,000

right here.

>> And what does it take to blow $10,000

in a year per day? How much money you

have to spend per day to go through

$10,000? I'll make it easy for you. The

the answer is $27.40

a day. $27.40 a day adds up equaling

$10,000 over the year. Now, before we go

through where do you where do you spend

this money? How do you waste $27.40 a

day, the question becomes, if you didn't

waste $27.40 40 cents a day and you were

able to get yourself to invest $10,000 a

year, what could this be worth over

time? And the answer is in 40 years if

this was in the S&P 500 fund which you

quoted earlier and you earn 10% annually

with reinvested dividends

that stack there would grow to 4 million

four over $4,400,000

if you invested $27.40

a day.

>> Pass me this big brick.

>> Yeah.

>> So if I save

half of this a day then in did you say

40 years?

>> In 40 years. So, let me give you the

math on a couple different ways of doing

this. Okay, so what would happen if you

invested roughly half of this a day? The

number I use is $27.40 a day. It's the

magic number. That equals $10,000 a

year. If you invested that a day for 40

years, you'd have over $4,424,000.

>> If I invest $27 a day, in 40 years, I'll

have $4 million.

>> Over $4 million. Let's go through the

yeah butts now because people are going

to hear this. Some people are going to

go, "Wait, what?" And then we'll talk

about where you find $27.40 a day.

Yeah, but $4,400,000

won't be worth a lot of money in 40

years.

With inflation, it won't be worth that

much. It won't have the same purchasing

power. My answer would be it's worth a

whole lot more than zero. Right? If

you're not saving any money, if you

can't save $27.40 40 cents a day, you

won't have $4,400,000.

Yeah, but with taxes, you know, it won't

grow that much. Well, it could if it was

in a retirement account. You wouldn't be

paying taxes on the money. Yeah, but

it's not possible to earn 10% on my

money. Well, the stock market for over a

hundred years has averaged over 10%

annually with reinvested dividends.

Yeah, but the stock market's risky and

complicated. Well, no, it's not. If you

bought an index fund, it's actually not

that risky and complicated.

Yeah, but I don't know. I don't know how

to get started. Well, you could start

really easily. You could open up a

brokerage account. You could go to a

Charles Schwab, Fidelity. I mean, I'm

literally going to go through them all.

Vanguard, Robin Hood, Coinbase, Acorns,

and in less than 10 minutes, you could

open up an account and be saving. Pick a

dollar amount. $5 a day, $10 a day, $27

a day, and that could change your life.

Now, why is $10,000, Stephen, such an

important dollar amount? Here's what I

can tell you, having done this for 30

years.

This dollar amount right here, first of

all, this is

one in two Americans don't have $1,000

in a bank account right now. So, this is

10 times what one out of two Americans

have. But more importantly, $10,000.

When we do surveys

and we ask people, "How much money would

it take to totally change your life?"

The answer is not a million dollars. The

answer is not $100,000.

The answer is actually$10,000.

And the question is, why is it 10,000?

And the reason is is that's about what

the average person has in credit card

debt. And they feel like they're

drowning like you talked about earlier.

and they know that that could pay off

their credit card debt. Or they have a

job they don't like and they if you knew

that if they had $10,000

in a savings account, they'd quit that

job and they'd be free. They'd have to

go find another job

>> or start a business or something

>> or start a business or god forbid

they're in an abusive relationship and

they can't leave. But if they had

$10,000, they'd leave. So, you know, a

lot of people go, "David, you just make

this all too simple." And it's true. I

do because when it's simple, people take

action on it. So for years, I have

taught this concept called the latte

factor. A lot of people love me for it.

Now I have a lot of people hate me for

it. And I have taught that, you know, we

waste small amounts of money on little

thing. I had your staff bring me a nice

coffee. Um, when I started teaching the

latte factor, I would talk about the

idea that we waste five bucks a day on

coffee. And that if you don't believe

you can start saving and investing,

at least save $5 a day. Make your coffee

at home. And people would say, "But I

don't want to give up my coffee." Okay.

Well, then figure out another way to

save $5 a day. This iced coffee, I don't

know what it costs here in London. In

New York City, that coffee right there

is $9.50

plus a tip.

It's over 11 bucks. I know because I was

just in New York. So

today we we had a bunch of props here

and I said, "Well, let's try to show

like what what is $27.40." Like when I

go to my hotel later when I leave here,

a cocktail is going to be 30 bucks,

right? I was just in New York City

cocktail. I had a cocktail in my hotel

was $31.50.

Wine $50. Eating out. You go and have

lunch today, it's going to be $25. And

people say, 'Well, I have to eat.' And I

go, I know you do, but you could also

brown bag your lunch. It's what my

grandmother did. Now, her friends teased

her. But my grandmother was able to

retire to California. And her friends

all got stuck in Milwaukee, Wisconsin,

where it was cold because they couldn't

afford to retire the way she did.

>> How many people could

actually save $27 a day? Because if I go

back again, just over 10 years of my

life, I mean, there's no chance I could

save $27 in a day. There's just no

there's just no there's no way

>> if you go back to what age?

>> If I go back to between

like 18 19 years old roughly that period

of my life.

>> Yeah.

>> There was no way I could have save $27 a

day.

>> Here's really the question. Do you have

friends and do you think you have people

who work with you

who are making more than $50,000 a year

and they're not saving $27 a day?

They're not even saving $10 a day. This

is true. I actually did a bit of

research um on this and it says

approximately 40 to 50 million families,

if we just take the United States where

I think there's what 330 million people

roughly um approximately 40 to 50

million families in the US can

realistically save $27 a day. This

represents roughly the top 30 to 35% of

households. For everyone else, the

bottom 65 to 70%. Saving that amount

would require either extreme poverty

level budgeting or is a mathematical

impossibility. over 40 million people

they think can afford to save $27.50 a

day.

>> Yes. It's based based on income and

expenditure data from 2025 to 2026

approximately 40 to 50 million families

in the US can realistically save $27 a

day.

>> So for those 40 to 50 million people in

the United States that would be

lifechanging. Now are there people who

can't afford to say that? Absolutely. In

the United States I I was just in uh

Arizona. I just did a keynote speech. I

asked the audience,

this is when the government was shut

down. I said, "How many people do you

think in America are taking and

receiving SNAP checks?"

>> What's that?

>> Thank you. Because, by the way, most

Americans don't even know what a snap

check is. That's a check that the

government gives to people for food. And

the dollar amounts a little over $6 a

day. So, smart people in a room, by the

way, I didn't know the answer to this a

week prior either. The answer is about

41 and a half million Americans

get a snap check.

When I told the room that, the room

gasped. I said, "So when you under when

you hear that the government was shut

down for six weeks,

that was three pay cycles."

Well, the average American doesn't have

two weeks of expenses set aside.

I I mean, I don't think everybody fully

grasps the problem right now. Four out

of 10 Americans can't get their hands on

$1,000 in case of emergency purposes. If

you actually dig into the Federal

Reserve data, it's 37% of Americans

can't get their hands on $400 in case of

emergency purposes. So, there's a whole

section of America that's truly

struggling. Like, but there's a whole

lot of America

that is still struggling. They're living

paycheck to paycheck, but their money is

being taken from them all the time

because they don't have a plan for it.

For that bottom 60% of Americans that my

research says wouldn't be able to save

$27 a day. Um, the data reveals a

discretionary income cliff. Once you

drop below the top 40% of earners, the

money available after bills vanishes

rapidly. The top 20% which earn I think

$96,000

per household are in a surplus. The

middle 20% um have a $15,000 surplus uh

which the $27 a day takes 66% from. But

the bottom 40% often have a roughly

$2,000 surplus. So it's impossible for

them to get to the $10,000 for that

bottom 40%.

What's what's the advice for them?

>> Start with something. Okay. It's like we

took this 50 and we said cut it in half

25.

I would say can you save a dollar a day?

I have actually talked about this idea

really simple. Could you save $10 a day

for 100 days? So like if you're

listening to me and you happen to really

be struggling right now, my question

would be could you save $10 a day for

100 days? Why? Because it would get you

to your first $1,000 and you now have

more than 50% of Americans who don't

have savings. And I can't tell you how

many people have come back after a

hundred days and said, "Okay, I did it.

It wasn't easy." For some people, saving

$10 a day could be really really hard.

But

you're you're into fitness. You saw my

son who just came in here.

Fitness is built through daily action,

right? It's built through daily action.

Daily eating well, going to the gym,

doing certain things on a regular basis.

Savings, the same thing.

There's a company called Acorns. I

invested Acorns back in 2015. Acorns

came up with an app that helps you roll

your change up. So, if I go to Starbucks

and I spend $9.50 on a coffee,

you can round it up where the 50 cents

to 10 bucks is put into investments.

Just rounding up your change.

And people have saved tens of thousands

of dollars over the last 10 years by

just rounding up their change.

Every time I've tried to improve

something in my life, like my

businesses, my health, my relationships,

I've noticed that the biggest shifts

have come from being better informed.

And when it comes to our health, most of

us know very, very little. So, when our

team was approached about partnering

with function health, it felt very much

aligned. Their team has developed a way

of giving you a full 360 degree view of

your health, many of the things that are

going on in your body, in the form of

different tests. You do one blood draw

and it gives you access to over 160 lab

results. Hormones, heart health,

inflammation, stress, toxins, the whole

picture. I use it and so have many of my

team members.

>> You sign up and you schedule your tests

and once you're done, you get a little

report like the one I have here. I can

see my inrange results, my out of range

results, and there's a little AI

function, too. So, if I have any

questions about my out of range results,

I can just go in there and ask it any

question I want. And these tests are

backed by doctors and thousands of hours

of research. It's $365 for a yearly

membership. Go to

functionhealth.com/doac

and use the code DOAC25

for $25 off your membership.

I had a friend of mine contact me and I

I spoke to one of the previous financial

adviserss and educators that I'd spoken

to on the show about him. He told me he

was in deep financial debt. Probably

earns about £50,000 or dollars a year,

but has got himself into real debt. And

I imagine a lot of my listeners are are

somewhat in debt, whether it's credit

card debts or loans or others. Do you

have any specific advice to people that

are currently straddled with debt?

>> Absolutely. Because it's one of the most

important things you need to know how to

get out of. Debt is like quicksand. Like

you know, you talked earlier about how

you were in debt and what that felt

like. When I came out of college and I

had $12,000 in credit card debt, it felt

like the greatest weight on my

shoulders. Like I was carrying like a 50

lb backpack. And how did I get out of

debt? How do you get out of debt? I will

give you the very simple formula to

getting out of debt. DolP. DolP stands

for done on last payment. If you said to

me, David, I've got five credit cards.

I'd say, "Okay, Stephen,

I'd take a piece of paper just like this

and I'd start listing your credit

cards." I'd go one, two, three, four,

five. And I'd list them all. Visa,

Mastercard,

and I'd list them. And then I want to

know, Steve, how much do you owe? So, I

put the dollar amount down. And what I

would do is I put the dollar amount down

on paper and I list it small

to large.

Then I want to know the interest rate.

Now, what people say is, "Oh, you should

take the highest interest rate and pay

it off first." But I wouldn't tell you

that, Stephen.

I'd tell you you take the smallest

credit card. I don't care what the

interest rate is.

>> The smallest amount.

>> Smallest amount. So maybe this card

right here is $500. And this card down

here is 3,000.

I'd have you make minimum payments on

every card

automatically. This is really important,

the automatic part. Have you go on I'd

literally go into your house. I'd open

up the I'd open up your iPad and I'd

have you make minimum payments online

automatically so that every card's paid

on time. Then I'd say, "Stephen, how

much extra money do you have?" Because I

want you to put it all towards the

smallest card. We're going to get that

small card paid off as fast as possible.

We're going to add all the extra money

to that small card. Minimum payments on

everything. Once that card's paid off,

we're going to go like this. You don't

have to close the account because we

don't want to lower your credit score,

but we're going to put that card over

here. never use it. Now, we're going to

go to the next next smallest card.

Some people call this the snowball

approach.

The reason I teach this system is it

reduces the amount of credit cards you

have as fast as possible.

And you see yourself make progress. It's

really important to see yourself make

progress when you're doing anything

financially.

Then I would attack the interest rates

because the interest rates aren't always

permanent. You can negotiate your rates

lower. You can move credit cards to

another card with a low interest rate.

Have to be very careful though when you

do that because they're waiting for you

to make a slip up and make a late

payment. And when they do, they'll jack

the credit card interest rates back up

again.

You can also call up your credit card

companies if you're really struggling

and tell them, "I'm struggling and I'd

like to know if you have a program in

place where I can stop the interest rate

and pay these cards off and more

accessible." Like this is basically what

the nonprofit credit card counseling

organizations do. But the credit card

companies often have programs too for

this. They'll tell you to stop using the

card. they'll actually make it so you

can't use the card anymore, but they'll

stop the interest rate. So, that

approach has helped so many people get

out of credit card debt.

Now, I just want to say something super

important because I've gone through

this.

When you go through the work of getting

out of credit card debt,

it's a huge victory.

Don't go out and celebrate

on the credit cards because I got myself

out of credit card debt in college,

junior year, and then I went out and

celebrated and got myself back into

credit card debt.

>> And people do this all the time. Usually

people get themselves in a hole at least

twice, sometimes three times.

Don't go back in a hole again. Uh I

didn't carry credit cards for 30 years.

I only carried a debit card and I had to

pay it off every month. Should these

people um who are in the bottom sort of

60% be thinking at all about how to make

more money, how to increase their

income?

>> Absolutely. And what are the like the

easiest ways to do that would that you'd

recommend just from your own experience

of you know being in the professional

world and

>> so my experience and I know that you

look you wrote this great book diary of

a CEO right anybody hasn't read your

book you have this great book what's the

best way to grow your income if you have

a job it's to be good at what you do

right you can have a job at minimum wage

let's pretend you work at McDonald's and

you have a job working minimum wage

McDonald's. The owner of McDonald's, the

guy who owns that franchise or the gal

that owns that franchise desperately

needs good employees. Who becomes a

manager that makes more money? The

person who works really well. Now, a lot

of people, I don't I don't know if I

want to work McDonald's. I'm just giving

it as an example. Anywhere you work, how

you grow your income is you are the best

at what you do. You show up early. You

have a game plan at work. You work late.

You do what you say you're going to do.

You don't wait to be told what to do,

right? Like I've been an entrepreneur

all my lifetime. The hardest thing about

being an entrepreneur is what?

>> Yeah.

>> Everything.

>> It's everything. And most people are

entrepreneurs go, "Well, it's, you know,

a lot of times it's hard to have good

people unless you're a good leader."

People are so thirsty to have jobs with

purpose and meaning. And most people are

actually looking for leadership.

So if you can be really good at what you

do, you will make more money. There's no

limit to wealth in the world, right?

Like we've never seen so much wealth

being created in our entire lives as

right now. If I were young, a lot of

people, well, you should learn AI.

Yeah, you know what? Probably you

definitely should learn how to use AI

because if you don't learn how to use

AI, you're going to have really limited

skills and go the and do certain jobs.

You know what else people are going to

go out and do? Learn how to be a

plumber. Learn how to be electrician.

Learn how to put up garage doors. I've

got friends. I got I was just recently

on a podcast with a guy who's made a

billion dollars putting in garage doors.

>> And he took me through his warehouse and

showed me their garage door models. And

I was like, you know, I've got a friend

who makes gyms that go in garages. I

just connected them. He's got a huge

business making gyms for garages.

There's just no limit to the amount of

opportunities out there. You have to

though get out of a stuck mind frame. I

mean, you had Tony Robbins here. If

there's anybody who can help you get out

of a stuck mind frame, it's that guy,

right? But you can't you can't have they

Zig Ziggler used to call it stinking

thinking. You have to have

the ability to look into the future and

believe that your future can be as

exciting today or better. I put up a

post yesterday. I said, um, I would

rather be an optimist and be wrong than

a pessimist and be right.

And you show me somebody who wants to

make more money, go into the world an

optimist and figure out how to go make

more money.

Do you think a lot of this is a mindset

at at at the core of it? Obviously there

are real socioeconomic factors and

there's people live in certain

situations and if I think back to you

know where I was born in Botswana

there's just less opportunity and

sometimes you have repressive

governments and other factors that will

objectively keep you stuck but all other

things being equal

how much of the game is mindset.

>> It always comes down to a decision and

we started by talking about my

grandmother. If my grandmother hadn't

made a decision at 30 that she didn't

want to be poor, she was tired of living

paycheck to paycheck. If she hadn't

decided that she would go out and teach

herself about money and take 50 cents of

her paycheck and 50 cents from my

grandfather's paycheck and start

investing,

I wouldn't be here today. She made a

decision that had a ripple effect

through our family. She built financial

security for herself with that one

decision.

She taught my father how to invest and

he was a financial adviser for over 45

years. My sister's a financial adviser.

I was a financial adviser. I spent the

last 30 years teaching people about

money. One woman's decision had this

ripple effect. So, one thing I say to

people who are listening, especially the

moms,

sometimes you got to make a decision

that's not just for you.

You're actually making a decision for

your family. and you can come up with a

list of reasons why this stuff won't

work. Somebody who's watching this show

or listening to us right now, they're

already interested in this. That's why

they're here. Now, they're here for a

couple reasons. Either A, they're

hurting financially and they know they

need to fix something. Great. Start

where you are. Fix what needs to be

fixed. Some people are like, you know, I

think I'm doing pretty well, but I'm not

sure if I'm doing everything well. you

know, I I've I've opened up my Roth IRA

or I've opened up my 401k plan. I'm

putting some money away, but I don't

know if I'm putting enough money away.

Then you can improve what you're doing.

Some people like, I'm renting. I think I

would like to buy a house someday. All

right, make that a goal. I teach three

buckets when it comes to money. Three

baskets. Pay yourself first for

retirement. We haven't even talked about

emergencies yet. Putting aside putting

aside money for emergency purposes. Have

to talk about that. You got to you got

to get more money put aside for

emergency purposes and then building a

dream account. You need to put money

away for your dreams. Those three

accounts should be automated.

>> And on that point of having three

accounts, you call it a future account,

an emergency account, and a dream

account. How much of your earnings

should you be putting into each of those

accounts on a monthly basis?

>> All right. So, keep it super simple. I

recommend one hour a day. Again, said

this earlier, it's 12 and a half% of

your gross income. When you say 1 hour a

day, you mean one hour of the the time

you work per day.

>> Yeah. So, whatever you make an hour.

>> Yeah.

>> It's if you're say if if you're working

a 40hour work week, 12 and a half% of

your gross income goes off the top into

a retirement account. Now, let me just

say something up for the yahutters.

They're like, I can't go from 0 to 12%.

There's no way. Then start at 1%.

If you're not saving right now and

you're listening to us and all you do

when you leave this podcast is make one

decision

and that decision is I'm going to save

1% of my income and you start that this

month your life will change. Your life

will change because you start the

process of making a difference. It's

just like the first day you go to the

gym. Now I will tell you if you save 1%

of your income you won't notice it. And

if you did that every month for a year,

at the end of the year, you would have

saved 12% and you will be saving four

times what the average American saves

and you will be in a rockstar shape.

Then the second hour, this is where

people's minds blow up. But the second

hour, so the first hour goes for the

future, the second hour goes for safety

and for dreams. So 30 minutes of your

income, roughly 5%

should go into an emergency account and

another 5% goes into a dream account.

Now, that dream account could be for

buying a house, could be saving money

for college, could be the vacation you

want to take at the end of the year,

could be getting married, could be the

engagement ring, but you're putting

money away for your dreams. Because when

you put money away for your dreams,

that's how they become real.

>> And you know, the book is called The

Automatic Millionaire. This is a book

that sold over two million copies

>> um on its own.

Why did you use the word automatic?

>> Unless your financial plan is automatic,

it will fail.

How do I know this? Because I spent nine

years as a financial adviser at Morgan

Stanley and I got to see firsthand.

Everyone who came into my office with an

ordinary income who built wealth, they

did it by saving automatically.

Every single time a client came into my

office and they said, "I'm going to

bring you a check every month myself." I

never had a client save for more than

six months. They stopped.

When it once you make the decision to

automate your financial life, it works

in the background.

Now, here's the thing. Everybody else is

already doing this to you.

You go sign, you go to go to a gym to go

work out. They don't ask you to bring

them money every month. They

automatically bill you. You get a phone

bill, they automatically bill you.

Today, in many cases, when you rent,

they automatically pull the money out of

your account. The banks automatically

take money from you for your mortgage.

When you pay taxes, they're all

automated. Everyone takes money from you

automatically. Everything that you sign

up for on your phone is a subscription

service. Netflix, go through your credit

card today. Open up your phone, look at

all your subscriptions. All those

businesses are taking money from you

automatically. Why? That's the only way

they can be in business. They know if

they don't get money from you

automatically, you won't keep using

them. Most people who start off with a

free subscription, it'll take them three

to six months to turn off something that

they don't use.

I'm here getting people to automate

their financial life for themselves.

Is there simple ways, apps, tools,

websites we can use to go through all of

our subscriptions and turn them all off?

>> Yes, there are. So, let me tell you the

easiest way. This is really actually

free publicity for Apple, okay? Because

so many people have Apple phones. Number

one, only do your subscriptions inside

of Apple. In an ideal world, don't pay

anybody directly. Do it all through

Apple.

>> Why? Because if you go to the bottom of

your phone and you don't know how to do

this and you put subscriptions,

up will pop everything that you've

signed up for and you can go click click

click and turn them all off.

>> Do that.

>> Another thing I will tell you is that

when you sign up for anything, let's say

it's a one year because everything now

is a one-year trial subscription or a

one month trial subscription.

The moment you sign up for it, shut it

off. Because what happens is if you sign

up for anything and think of any

subscription you can imagine. Companies

hate me for this. The moment you shut it

off, when the time comes for it to

renew, they will offer you a better deal

to renew.

>> Okay, so I've opened up my phone. I've

gone to the settings. I've clicked on my

name in the settings and then I've

clicked on the button subscriptions.

I have one, two, three, four, five, six,

seven, eight, nine, 10, 11 of which

three of them

I would keep.

So, all these other ones have just been

running in the background and and it's

because I used an app one time and it

signed me up to some kind of free trial

and I just totally forgot to cancel it.

So, I've got Oh my god, some of them are

massive.

>> Okay. So, so as you do this, what you're

doing right now is a real life example.

So, if someone's listening to us,

watching this, they're married, they've

got kids, or they're single by

themselves,

this one exercise, my guess is there are

many, many people listening that could

find $50, $100, $200 a month that they

could shut off and redirect that money

to saving and investing and that could

change their life. Are there other apps

you can use and go to to figure out how

to cancel or leave your subscription?

>> So there there are and most these apps

you have to pay for, right? So like you

can go to So then you're right back into

paying for an app now. Probably the two

popular most popular apps are Monarch

and Ynab. You can also do this with your

credit cards. Um the credit card comes

doing a better job of showing it on your

statements. And again, I go back to the

Apple example because Apple makes it the

easiest to shut these off.

>> Maybe some of you will be spending $100

a month. So, I did $100 a month. And it

says if you invest if you sort of cancel

those subscriptions and invest $100 per

month for 40 years, an annual rate of

return of about 10%, which is roughly

what you get if you just put it into