[Music]

53% of you are planning to make a New

Year's resolution about money finance

and investing this year because you want

Financial Freedom and Financial Security

so we went through every conversation

we've had about money personal finance

and investing and we found the most

replayed and most shared moments from

those conversations for you everything

from life-changing advice on saving

spending investing tax crypto buying a

house and having a money mindset the

most expensive thing that all of us are

paying for is the information that we

don't know so how do you make the most

money humanly possible it's two things

let me tell you a few key basic things

about investing in money it's going to

lead to amount of success that will

literally put you in the top 5% of

investors but never have to worry about

money again if you listen to this

conversation we believe your money goals

will come true in 2025 so take

notes quick one before we get back to

this episode just give me 30 seconds of

your time two things I wanted to say the

first thing is a huge thank you for

listening and tuning into the show week

after week it means the well to all of

us and this really is a dream that we

absolutely never had and couldn't have

imagined getting to this place but

secondly it's a dream where we feel like

we're only just getting started and if

you enjoy what we do here please join

the 24% of people who watch this channel

regularly and have hit the Subscribe

button means more than I can say and if

you hit that subscribe button here's a

promise I'm going to make to you I'm

going to do everything in my power to

make this show as good as as I can now

and into the future we're going to

deliver the guests that you want me to

speak to and we're going to continue to

keep doing all of the things you love

about the show thank you thank you so

much back to the

episode so what is the S&P 500 for

anybody that doesn't know yeah and what

are the returns that I'm likely to get

from investing in the S&P 500 I really

want to simplify this for people that

are at the very start of their investing

Journey you know because I mean this is

what you spend so much of your time

doing that I just think about my my team

here say the dire of a CEO there's about

30 people and we started talking about

money one day and it was mindblowing how

nobody in my team's lives had ever had

the conversation with them about

investing we all think of investing as

something that rich people after the age

of 40 do once you have a million dollars

um Al if you don't have a million

dollars then the only other way to

invest we're taught is to buy a house ah

this is driving me insane it's true

though isn't it yes and that's that's

the central part of my work is that you

can live a rich life and that rich life

can be richer and more vibrant and more

personal than you ever imagined if you

want to travel you can travel for longer

than you ever thought you can travel for

me at nicer hotels you can uh spend more

time with your children with your loved

ones whatever your rich life is you can

do that but you've got to learn a few

key basic things about investing and

money so let me tell you what I would

tell my family when they come to me they

go how should I start investing the

simplest simplest way that I advise my

family is I say get a Target date fund

so let me explain what that is a target

date fund is One Fund just one and you

pick it based on the year that you're

going to retire so if you're going to

retire in

20150 if you're going to be 65 in 2050

you go and you find that one fund it's

called a Vanguard 2065 fund or Fidelity

2065 or Schwab 2065 there's lots of

Brokers These funds it's One Fund all

you do is put money into it that's it

the fund like a pie chart is

automatically Diversified so as you get

older it gets more conservative because

somebody who's 75 years old should be

investing differently than somebody

who's

25 One Fund all you have to do is set

your money up to go into it every single

month what is a fund a fund is uh a a

set or a basket of stocks and maybe

bonds so we've all heard of you know

companies like Microsoft Google whatever

a fund owns lots of these right and

that's important because we've heard

diversification like you should have

Diversified your Investments okay well

how do I do that you don't need to go

and buy 20 stocks and then figure out

how much of each to do that's too much

work and honestly most people are not

good at that even professionals you buy

a fund which automatically owns lots of

stocks like hundreds of them and over

time all you the individual investor

like me have to focus on is putting

money into it automatically so a fund

essentially I've got1 pounds that I want

to invest um I find a fund where do I

find these funds you can go to Vanguard

Schwab or Fidelity all those are great

companies uh what looking for regardless

of what country you're in is you're

looking for a lowcost brokerage firm so

but there's also apps and stuff that I

can you can use apps I don't like a lot

of the apps because they gamify you to

try to invest they want you clicking and

trading I hate Traders Trad you do not

want to be a Trader Traders lose money

investors treat investing like watching

paint dry that's how sexy it is trust me

I'm not getting my entertainment from

investing I'm going out go watch a movie

go watch

Netflix but investing is boring and

automatic that's how it should be I used

a a a company called HRI lands down in

the UK who have an app when I first

started investing um when I first

started investing in funds they they had

a very ugly app so I wasn't very

compelled to use I think it's better now

but I would use just do it on desktop

which I do get your point because you

don't want to you don't want to be game

you don't want to screen all of that

notific like ug it should be ugly I you

want it to be too accessible as in I

don't want to be able to check it every

day no look on my phone you will see no

investing apps yes there should not be

why do you need to log in and check it

every day what's the point yeah in fact

I log you know what most people should

check it every three to six months and

here's how you check it you log in on

your

desktop wow it's up wow it's down okay

bye you're not tweaking anything it's

like making Thanksgiving dinner once

you've put the T in the oven just let it

sit do not fiddle with it cuz you're

only going to mess it up and in this

case you're letting the turkey cook for

decades and that fun so I've got 100

pounds I go on a website Vanguard

Fidelity Schwab whatever they are I have

no Alliance to any of them neither do I

um there's various ones in the UK I

actually do recommend hgri land down

just because it's simple and I think

investing in funds there's no fees

there's no fee associated with the

investment itself obviously they take a

you know they might take a percentage

depending on which fund you're investing

in I take

my00 and investing in heve lands down

you don't need there's no um minimum

great from what I understand and there's

no if you invest in a stock they charge

122 pounds per investment but if you

invest in a fund it's free um I put

my100 pounds into a fund the fund is

essentially taking one pounds one of

those pounds and investing one pound

into Facebook it's investing one pound

into Google one pound into Shopify one

pound into Spotify one pound into Nvidia

or whatever it's doing that for me it's

managing it for me it's making the

decisions for me I just put the money in

every month whatever I can and I leave

it yeah and let's go even deeper I love

that we're getting into the nuts and

bolts here because you know honestly

most people they do not know how to

invest literally what website do I go to

and then what do I

do the fund owns these different stocks

and some will go up and some will go

down and it's inconsequential to you all

you need to know is you own this

fund now that you've opened up an

account and you've sent a hundred bucks

or 1,000 bucks great you've made one of

the most important decisions of your

life now there's just one more thing you

have to do set up an automatic transfer

so that every single month you have a

certain amount of money going in now if

you don't know how much money use my

conscious spending plan guideline what

did I say 5 to 10% of takehome is a good

guideline all right you should be able

to do 5% trust me anyone who comes to me

they go there's no way must be nice I

can't afford I go show me where you're

spending your money I guarantee you I

can find 5% to send in every month now

you're not trying to send it in I don't

try to brush my teeth in the morning

it's a habit investing is even easier

than brushing your teeth because you set

it up automatically the investment fund

will automatically draw from your

checking account and it will pull in a

100 bucks 500 bucks 1,000 bucks whatever

your number is and so so you're not

going to log in for 3 four 5 months

you're going to log in a few months

later you're going to be like oh my god

I didn't even realize that all this

money is in here when you add that plus

compounding over many years that is how

real wealth is created so I don't want

anyone to think that you have to be rich

in order to start investing one of the

ways you get rich is by investing I've

got a friend that's currently actually

in this building at the moment and I had

this conversation with them about a year

ago gave the advice that you've just

given there and about 2 months later

this individual who I Shan name came to

me and I said How's your uh you know

your your your Investments going in that

in that fund and they said oh yeah I had

bills I had a credit card bill so I I

took took it out oh yeah she she treated

like a checking account Investments for

me

are places to accumulate wealth I don't

draw from it that's what a checking

account is for so if what that is is

there's two parts to what your friend is

saying one is um mentally she's thinking

that this investment account is just

money I can draw from if I need it so I

would sort of gently change the way she

thinks about it the second is I

guarantee her account structure is a

little um subpar so here's how I would

set it up this is in chapter 5 uh it's

all automation cuz trust me I don't want

to spend time transferring money back

and forth that's I don't spend any time

on that you get paid your money goes

into your checking account from your

checking account it is automatically

transferred to a savings account in fact

I have sub savings accounts for vacation

car down payment all that stuff so you

have money set up for specific goals

money is transferred to your investment

account it's transfer there I'm not

going to touch that money I'm going to

let it cook and then I have my

guilt-free spending which is going out

with friends whatever I love and my

credit card bill is automatically paid

off every single month that's how you

want to set it up it takes a couple of

weeks to set everything up and then you

never have to think about it again C how

can you prove to me that this is the way

to make wealth what case studies have

you got that investing in funds over a

long period of time is the path to

financial wealth because you know it's

you said earlier about the paint drying

thing The Narrative that we see about

how why people and how people get rich

is you know they sell a company or they

have a lottery win or maybe they buy

some cryptocurrency and it goes up yeah

that's what we hear so that's what we're

try and emulate totally we prove to me

that that's that this fund strategy is

better well there's there's a couple

things first off the research over more

than a hundred about a hundred years

shows the returns of the stock market

and the returns tend to be at least in

America they tend to be around

11% 10 to 11% and if you take out

inflation you get about 7 to 8% per year

now for anyone listening they go okay

well what does that mean that number

means nothing to me 7% whatever if you

go right now and you Google investment

calculator and you just plug in your age

you plug in let's say 200 300 bucks a

month and you plug in 7% return turn and

you just watch how that money grows you

will be shocked Jack get me my phone I'm

going to do it

now okay so let's search for compound

interest calculator and there's a really

simple one this it's called money chimp

okay okay I've got it all right all

right so there's four numbers we need to

fill out here let's take a look the

first is current principle that means

how much you've got in the bank I'm

going to

say

$5,000 and I'm going to start when I was

16 because if IID saved my money when I

was 16 and not spent irr recklessly I

think I could have had that $5,000 when

I 16 um annual Edition what does that

mean how much can you invest per year so

for most people they think about on a

monthly basis they might say 200 bucks a

month which would be $2,400 annual

Edition okay so what do you want to say

I'm going to say can I say $5,000 yeah

that's you know about 400 bucks a month

I think that that's reasonable I often

find that with people making uh median

or slightly above median salary that

there are hundreds of dollars of month

of money that is unaccounted for that if

properly made intentional could be

invested so great 5,000 a year all right

obviously I could have once I got past a

certain age I could have increased that

though so we're going to talk about that

hold on to that idea okay how many years

this was you at 20 this was me at 16 oh

okay and how old are you today 30 okay

so 14 years let's just do it until today

and we'll see what happens okay all

right 14 years and then it says interest

rate so what should we assume for that

is that 8% yeah s to eight I I do seven

just to be super conservative because I

never want to be surprised on the

downside right if anything I'm going to

make more so 7% all right let's

calculate it okay what do you see damn

what do you see

$133,000 537 yeah that's what you would

have had right now now let's add some

context so this is really important you

see a number that says

$133,000 at age 30 yeah okay is that a

lot is that not hm I don't know let's

break it down at that point you started

with

$5,000 and you invested $5,000 per year

we assumed no raises even though you

obviously made more than you made at age

16 mhm weum assumed you stopped

investing at age 30 which is obviously

ridiculous and you end up with six

figures let's play it out let's take it

until

40 so instead of 14 years you invested

for 24 years what do you

see I would have

$336,000 it's getting better from just

$5,000 a year it's not much it's

fantastic again 400 bucks or so a month

is very modest remember people's income

goes up typically in their 30s and 40s

and if you already are investing a

little bit automatically all you have to

do is just tweak a number and it will

take an extra couple hundred three four

500 bucks let's do one more let's go to

34 years just because I want to see what

happens and then we're going to play

with the other numbers okay so investing

from the age of 16 until I'm 50 mhm I

would have $736,000

in my account yeah now I want to do the

full the full thing I want to do a more

realistic number here so instead of 50

we're going to go 49

years that takes you to age 65 yeah okay

and instead of $5,000 per year your

income obviously went up from being 16

years old so I'm going to pick a number

out of thin air and and I'm going to

tell you how I picked it I'm gonna say

instead of $5,000 a year it's actually

going to

be $30,000 per year let me tell you why

I picked

that in your early years you don't have

as much money but you were still

investing a little bit which shows that

you're dedicated as your income goes up

you're going to start proportionately

continuing to invest so at a certain

point your income will be really high

and that will bring that average up

that's why I switched it to 30,000 per

year I actually think this is quite

modest but I'm going to go ahead and do

it

so here we have someone starting

investing at $5,000 they invest $30,000

per

year okay they grow it for 49 years at

7% do you know the

math no tell me

12,330 so that's me starting with 5K

gradually ratcheting it up until I'm

investing well investing 30k on year a

year per average across those 49 years

yes which is a flaw in this because it's

so simple that money invested you're not

actually going to invest that much early

on you'll invest more later so you won't

actually you'll maybe have a marginal

amount less but we're talking 10 versus

12 million that's a lot of money and

then if I got 8% instead of the 7% I'd

have 17.4 million yeah but don't mess

with that cuz this is what this is what

people do they go well if I got 13% I'm

going to invest in

I don't do that you're going to lose all

your money just stop 7% is safe it's

conservative that's why I am here that's

why I want to encourage people you don't

need to juice your returns I hope you do

get 8% but I don't want you to count on

that I want you to count on safe stable

returns and what matters for you is the

time you started early and the amount

you have a considerable amount to

invest you know the the biggest debt one

of the things I um I love saying this

but like the biggest debt all of us pay

is ignorance and so I I heard this close

at this pitch years ago and this guy got

on stage and he and he was like Hey

ma'am he was like how much do you make

she was like $50,000 so he wrote $50,000

on the Whiteboard and then he wrote A

Million Dollar on top of the 50,000 and

he subtracted it and said $950,000 he

said you pay life $950,000 every single

year for not knowing how to make a

million dollars a year and it was a

crazy concept he was using it to close

the audience but I like the most

expensive thing that all of us are

paying for is the information that we

don't know and that's like both

frightening and also incredibly exciting

because

like fish in the best ponds right like a

good fisherman knows where to fish and a

different way of saying it is find the

people who value what you have the

most and I'm sure you've heard this have

you heard the story of the the father

and the son with the car no okay so

maybe I have I enough detail it's good

it's good so there's there's a father

who gifts his son an old beat up car and

he says you know hey I don't know if it

drives or not but you can take it down

to the um the dealership down the street

see if you can trade and get some money

he was like okay so he goes down the

street goes to the dealership they say

we'll give you a th000 bucks for it and

he come you know hears him out comes

back home he's like Dad they said give

me a th bucks he's like okay he's like

go to the impound yard where they you

know break the cars up just for Metal

He's like see what they'll give you goes

there and uh the guy's like ah I don't

know this might be500 Buck of metal kid

like you know comes back home he's like

Dad you know he said it was going to be

$500 he's like okay he's like hey go

down the street to that uh that antique

uh dealership see if they've got

anything that use carlot he's like okay

so he goes down there talks to the guy

comes back home super excited he's like

Dad you won't believe it he's like this

is a historic car there's only like 10

of them left he's like it's worth

$100,000 and so the father smiles and

he's like and the lesson I want you to

know is that it's not necessarily who

you are but the people that value you

the most and so you can talk to

different people and go to the people

who value you and I just I I love that

story because from a it's a Hu it's a

huge business story in terms of like

sell sell the where the fish are where

the big fish are like if you if you're

going to go Hook Fish go to go where the

whales are um it takes the same work but

a lot of it's just belief people don't

think it's possible and so a lot of

times you have to just keep leveling up

and you sell your first $110,000 thing

you sell your first $100,000 thing sell

your first multi-million dollar package

you realize it's the exact same thing

it's just so maybe if I'm list if

anybody's listing right now it is the

same thing it's the exact same thing and

sometimes it's

easier it's normally easier like you

know you've seen that Meme that says

like uh so what exactly am I going to be

getting for this $50 thing right and

then it's like uh $50,000 clients like

wire scent yesterday like what do you

else do you need like it's and that's

totally true um but I think there's a

skill in understanding where to

fish so a skill um information it's

information it's even knowing that there

was another Lake over there in part and

and that's why like listening to

conversations like this is so valuable

for people because it lifts a curtain

and you go what the [ __ ] you guys were

behind here the whole time partying

that's what my business life has been

like it's like gradually like I think I

heard Kevin Hart describe on Joe Rogan

one time where he said there's this

other room yeah where these people

playing this other set of money games

yeah and then when you get in that room

you get you're almost pissed off that

nobody told you this room existed did

but then there's another door

yeah and then you get through there

maybe a couple of years later and you

find these other people these [ __ ]

billionaires that playing another set of

games and you're going what and they're

chilling yeah they're just smoking

cigars they're not even doing any hard

work and you go tell me the games that

you guys have been playing in here yeah

and then again the frustration is and

that's kind of what I feel like in my

business life it's been like where at

the jump I'm charging I don't know I

remember my first we found our first

deck from 2014 charging I remember the

package we did gold silver and bronze it

was like you know like $200 package for

like support and then $500 and then the

gold package where we threw everything

in for $1,000 and I remember my one of

my first clients um accepting that and

then I think today like the only

difference okay there's skills that have

increased but information is the big

thing knowing how to do it you know

um when you think about curtains that

have lifted that have really shifted the

games you play from a value money

perspective mhm like where someone's Ed

the Lights On You [ __ ] of course yeah is

there anything else that comes to

mind I will answer it with the stair

steps of how each order of magnitude

change in my income so when I went from

being an employee to self-employed I

went from making four figures a month to

five figures a month and that was for me

just like I'm now in control the level

above that was I started having other

people who worked for me and then went

to six figures a month right and then

from there stayed there did the

turnaround business still had the same

organizational structure had another

degree of Leverage and so the next

degree of Leverage was that I started

licensing so it was digital right so the

cost for you cost of goods is basically

nothing but all of these things are

about leverage and so this is like one

of my favorite topics in the whole world

but if we Define leverage as the

difference between what you put in and

what you get out so if you have a lot of

Leverage you put a little bit in you get

a lot out if you have no leverage or low

leverage you put a lot in you get a

little bit out and a lot of times people

who are listening to this and are not

making as much money as they want

they're putting lots of input in and not

getting a lot out they have low Leverage

opportunities and so understanding how

to get more for what you put in is the

game overall and so the first level that

I described was Labor it's just work

first I was working for someone else

then I worked for myself then I got

other people to work for me first level

each of those levels was more leverage

above that I had media which is the

thing that I was licensing out so

another degree of Leverage I made it

once and I could license it out Infinity

on top of that I have capital I can take

capital I don't have to sacrifice time

in order to get something for it so it's

high input output um above that would be

some sort of Technology you build the

code once in theory obviously you

continue to improve the code but

theoretically you build the thing once

and then a million people can use it and

so you want to Stack as many types of

Leverage as you can and as much of them

as you can because like Joe Rogan also

has a show and somebody else has a

podcast they both technically are using

media as their as their as their vehicle

for leverage but he has significantly

more of it so it's not just like I'm

going to use all these right yeah but

it's also how much and to what degree

but like Facebook had other people's

money he used media had other people's

work Max leverage Amazon same thing

right they used every element of

Leverage and they maxed all of them out

and um that's that's at least the the

curtain that and nval talks about this

if you're familiar with Nal rant um he

talks about these things as the as the

the P the elements of Leverage or four

types of Leverage um and understanding

that for me has kind of been a blueprint

for wealth overall and then you know

Capital there's degrees of capital right

like you first you can get friends and

family to give you money then you can

get you know institutional money and

then you can get public money right

which you know you saw like the IPO

money like the fact that the NASDAQ was

Forex uh the dorf exchange is that where

it was right um there's just

significantly more capital in that

market and so it same work more zeros um

and so I love this topic because I think

that that's fundamentally like the

people who move faster in life don't

actually move faster than get more for

every

step if right now you want to find where

is your unfair bet that can make you

your Millions with your skill

set that nobody else in the world can

replicate except you here's what I need

I would need a whiteboard I would need a

pen which I would do if I was you and I

would need a smart friend perfect like

so I've got Stephen here and at the top

of the right whiteboard I would write on

this side skills oh my God you're going

to see my handwriting like a doctor and

on this side I would write money M and I

would start writing down all the things

that we're brilliant at so let's pretend

it's it's stepen here and we'll pretend

like you don't have all the things that

you have but your core skill set you

could put your hand on the screen by the

way oh it makes me nervous am I am I

doing this like a boomer I am the

handwriting is a little bit it's giving

doctor so I'm yeah look at that okay so

embarrassing okay so social media right

you're incredible at social media what

else are you probably good at well you

know a lot of people you've got a

network what else well it's not just

just social media though it's actually a

few particular things it's like YouTube

and I think you're one of the best in

the world at short form video right

you're also one of the best in the world

at like a

datadriven social media strategy so you

can kind of say upfront hey we think

this is going to go viral because the

data says this thing over here what else

is Stephen good at he's charismatic he

can probably get people to agree to

things just by talking to them you know

what what else uh British ACC you know

so probably you want more in-person

interaction because uh we've got you

know uh a very charismatic person what

else is Stephen really good at well he

asks a lot of questions this is my hinge

profile by the way I'm totally just

gonna copy and paste St yeah good-look

funny you know yeah exactly so so we'll

just say these there's a lot more deal

flow but let's just pretend that all

you're good at is social media you're

good at getting to people which is a

network you don't even have to know rich

people just can you get to them you're

charismatic you're data driven okay

great we've got all these skills now how

could we apply these skills to get the

most money humanly possible and I would

do exactly what you said so how do you

figure out most money humanly possible

it's two things it's the how would I do

this it's the size of the

problem it is the value of the

solution interesting okay and so if I'm

thinking about this for you if I go and

I give your social media media skills to

a trade or service business M I'm not

going to make that much money how do I

know I'm not going to make that much

money because I'm going to go look up

online what is the average revenue of

this business and the average profit

margin yeah now you probably didn't even

think this way when you were thinking

about it but you guys look online right

now what's the average profit margin of

a biotech company in average revenue let

me tell you what it is it's going to be

like 50 to 80%

and it's going to be hundreds of

millions that you could potentially get

Trade Services business a lot less yeah

and so that's where I would start skills

plus money really equals to three things

which is like

sector size of the

business and profitability of the

business and I would play this game and

what that might look like is you go okay

I know that I have some friends in

let's go to the places that we know have

the most cash in Silicon Valley in on

Wall Street if they could make a lot

more money if they had a lot more

attention because what I'm selling is

attention I want to get to the people

who can make the most money with the

most attention and that means that I'm

not going to go to Walmart only has 6%

margins I'm going to go to the highest

person that I could get to and it'd be

fun if anybody's listening to this right

now try it like tag Stephen and I in

your stories on Instagram of your little

charts and let's see and I'll give

feedback anybody that tags me in it if

you're like here's the here's what I

think my skill is here's what I think

the industry is I'll tell you one way or

another and it can be fun you can see

other people's examples live so people

people that are only listening on audio

and and that can't see what the um this

uh chicken scratch chicken scratch

you've just drawn on this iPad um on one

hand you have you list your skills and

then on the second side you're listing

the ways you believe you could make the

most money from those skills based on

the size of the problem you'd be solving

with them and the value of the solution

so for example let me let me try and

play this game with you then so okay so

I am a writer so I'm going to do my

skills on the left hand I'm a writer and

on right I'm going to write money yep

I'm a writer I'm really good at writing

stuff um that's it and I kind of get I

kind of get the internet so I kind of

understand LinkedIn blogs and stuff like

that but that's it I'm a writer let's go

with what would be the worst what would

be the worst thing you could do if

you're a writer to make no money to make

no money cuz sometimes it's easier to do

the negative okay working for a local

news yeah local I was thinking like

fantasy books like you could write like

fiction you know really hard to make

money in you could write for a local

newspaper that's an even worse idea so I

like that so now you've got your your

bottom tier right which is like 14 bucks

an hour or something like that now if

you look about I mean you could Google

this what is the highest paying jobs for

writers I bet the thing you'd find on

top copywriter why I got a better one oh

what's the better one do you know why I

know this because when I was in working

in biotch we couldn't hire one which is

a medical writer oh oh so smart hypers

specialized honestly we so a typical

copywriter when I was working in my

social media company we might pay entry

level £25,000 which is probably about

$35,000 okay a medical writer someone

that can write about the psilocybin

compound in my psychedelics business

would get paid

$150,000 or more we just couldn't find

some we found loads of people that could

write yeah but nobody that had within

their skill stack even though it's quite

easy to teach the ability to write using

medical words slightly medical words it

doesn't mean you need a medical degree

you could probably learn how to write

become a medical writer in a month if

you really committed yourself to it so

that's the top true and same with

Finance we go to the things we know so

you know biotechs you know there's a

niche there I know finance and I know

that again it's one of the highest

paying Industries so a financial writer

what would that look like it would look

like somebody who knows how to write

probably an investor update yes right

yeah yeah yeah so hugely lucrative and

then the other thing you could do is I

guess I didn't even think about this

before it would be like size of the

problem it would be value of the

solution and then it would also be

structure of your job so like if you're

a copywriter I wouldn't take a job for

35k what would I do I would say hey pay

me what is the salary you want to offer

35,000 I'll take 10,000 so I can eat

because I'm hungry but can I have a

percentage of The Upside that I drive

above and beyond goal so if I'm going to

write copy that converts into Revenue

like I'm going to write a funnel for

your biotech company or I'm going to

write a funnel to get investors for you

if right now per month you get $100,000

through that funnel how about you just

pay me an extra 10% of everything I

drive above your 100K so I think that's

another way you can make more money is

getting smarter on deal

structuring well that's actually when I

moved into biotch how I got paid and

when I talked about a thou being paid a

thousand times more than I would have

previously it's because was the way I

got paid was in options in the IPO

brilliant yeah so I got given in that

particular company I got given 400,000

shares effectively in the company at a

certain price um and so when the company

ipoed at $3.2 billion on the NASDAQ in

July 20 I don't know 21 or something

even though I'd only worked in the

company for about six months just

helping them build out the marketing

team I think my like net return was on

the equity value at the time was quite

close to 10 million so 6 months work 10

million return because I you know and

the re really really the reason I did it

was CU so interested in psychedelics but

it just opened my eyes to the fact that

any kid with social media skills and

that knew how to structure a deal with

these people could have walked in there

and said give me some stock in this IPO

and I'll run your social media for six

months you're so right could have change

your life yeah and it's it's something

I'm struggling with trying to get people

to understand right now is that even if

you never buy a business which is what

people fixate on well I haven't bought a

business yet I haven't bought a business

yet it's like God you're never going to

regret learning how to do

deals you're never going to it's I think

that is the most valuable skill set in

the world I completely agree and it's so

unfair that people don't know about it

it's so unfair but it's also your fault

if you don't know about it because

nobody's gatekeeping this information

anymore it used to be gatekeep like when

I first started off in private Equity I

wasn't allowed in the rooms where they

were actually doing the deals and the

terms and if I wanted to see what the

final terms were like I had to kind of

you know sweet talk my way into figuring

out how they structured it but it's an

unknown unkknown

so before I knew I didn't know that I

didn't know yeah that's true yeah that's

very true but now I think there's enough

people out there talking about it where

you're like I mean if you think about

whether you like Donald Trump or not

what is he really good at deals the art

of the deal like it it that's it and

that is what Mo I mean Elon Musk how

does Tesla actually make money they make

money through credits through credits

for solar so he was able to survive for

those 10 years of building that company

because he has some of the best solar

tax credits in the world that he

negotiated with the government so where

does one go then where does a

25-year-old kid listening to this go to

learn how to make deals well I have a

book coming out yeah called Main Street

millionaire yes exciting I know and we

have we have stuff we can tell them

about that later too okay well I'm going

to link Main Street millionaire below so

everyone can pre-order it I've

pre-ordered I think 10 or 20 copies of

it maybe a couple more um but that's

like 30 bucks and you learn almost

everything you need to know about doing

a deal to start and that book is only

what you need to know I made it on

purpose not really long not overly

intense it is exactly what you need to

know and then if you like learning deal

making and you like that book then you

go to contrarian thinking.com and we

have courses and free newsletters and a

community all about buying businesses um

but that's where you should

start the other thing I I came to learn

is I got money and I it was almost like

someone pulled the curtain back for me

is how wealthy

individuals play the TX game oh my gosh

and it's a tax game that the average

person has no idea what's going on got

to talk about money tax avoidance is a

key skill to Building Wealth and by the

way we don't talk about I I speak openly

about my I won't call it tax avoidance

but my Tax Strategies if you're you know

it's like they said if you're a prison

of War you have an obligation to escape

if you're trying to build wealth you

have an obligation to pay as little tax

as possible do it legally but Apple will

issue their IP to Apple International in

Ireland and then they will use apple

Ireland they will license their IP to

America charge them tens of billions of

dollars thereby increasing the income of

Apple Ireland at a lower tax rate and

decreasing the income in the US thereby

lowering their overall tax rate that is

pure tax

avoidance every organization every

corporation does this to the hilt and so

should you by the way I will vote for

people who have an alternative minimum

tax we have to raise taxes on

corporations the 25 wealthiest Americans

pay between 6 and 8% tax rate what are

the tax games they're playing oh just

the rich people there's a bunch of them

first and foremost it's you buy stocks

you never sell them you borrow against

them okay explain that to me like I'm a

10-year-old so sure you own $100 an

Amazon stock yeah you need money to buy

something instead of selling the stock

and it say it's gone up 50% I say it's

doubled you would have to realize a

capital gain and pay long-term capital

gains on that $50 gain no just borrow

against it and let the stock continue to

grow and you pay a little bit of

Interest hopefully from your current

income but basically it's invest borrow

against it and die put it into a a trust

and then pass it on to your kids there's

a lot of um State Arbitrage Jeff Bezos

just moved to Florida to spend more time

with Dad isn't that sweet Stephen isn't

that nice no it has nothing to do with

his father give me a [ __ ] break he

aggregated $160 billion in wealth he

would pay about another eight or 10% in

state taxes in Washington because he's

got to leverage the public school system

the University of Washington the Seattle

Tacoma Airport the hospital system but

in the US you're allowed to piece out to

Texas or Florida and pay no income tax

so all the people [ __ ] Post in

California or New York show me someone

who's CR all of a sudden can't handle

San Francisco politics I'm going to show

you someone who needs to recognize a

capital gain and has all of a sudden

decided they like like Texas politics

it's really not very it's very

disingenuous there's uh the tax loophole

I've leveraged in the US there's

something called 122 or qualified small

business so when I started L2 what's L2

L2 is my analytics company I started it

I invested a small amount of money um uh

because it was a business worth F less

than 50 million your business would

qualify in the US as qsb small business

if you hold on to that stock in that

company for longer than 5 years when you

sell it the first 10 million or 10 times

the basis are taxfree so the first 10

million out of L2 was tax-free

zero that makes no sense if that sounds

like we're screwing the middle class

trust your instincts I invested in a

company brought a company out of

bankruptcy I invested two and a half

million the first 25 million got very

lucky the company got sold for a lot of

money the first 25 million were taxfree

these are the tax code has gone from 400

pages to 4,000 and that extra 3600 pages

are to turn rich people into super rich

people now the myth around taxes is the

following that rich people don't pay

their taxes

actually the sort of Rich pay a

disproportionate amount of taxes so if

you make all of your money from current

income that is salary and you make a lot

you're actually paying more taxes than

anyone so mom's a baller she's a partner

in a prestigious Law Firm making a

million bucks a year dad's a

chiropractor has three people working

for him he makes 600 $1.6 million a year

total ballers in order to make that kind

of money they probably have to live in a

urban center in a blue state where at

that level they're paying 45 48

sometimes 52% tax rates but if dad

decides to raise capital and buy a bunch

of chiropractic clinics and they become

Investments and he sells them for $50

million his tax rate plum

so you don't want to be a super earner

you want to earn enough money to invest

so you can become a super owner the top

25 wealthiest Americans pay about 8% in

tax right so actually the bottom half

pay almost no tax they pay a lot of

consumption taxes but it's the super

earners that get screwed what I call the

workhorses but once you makes the jump

to light speed and you own things and

you make your money from buying and

selling assets your tax rate plummets

the really sort of actionable thing

there for the average person as well is

probably the the first point where you

said a lot of what rich people do is

they'll buy a stock so I'll I'll spend

10K on Amazon stock and then I go to a

bank and the bank give me a $5,000 loan

against my Amazon stock taxfree and I

just hold the Amazon stock now I've got

5,000 taxfree if the Amazon stock goes

to TW $20,000 in value then I can I can

go to the bank and say it's gone up now

give me another $5,000 and I just spend

and live off that money now if the

Amazon stock

collapses I'm fine because the loan was

against the stock so they'll sell the

stock at a certain point as it's

collapsing to get their money back yeah

I mean you don't want to get into too

much trouble but it leverages how smart

people go broke but the idea is that one

of the great tax schemes in history is

that stocks grow think of yourself as a

stock you you go up in value a million

bucks a year you're making a million

dollars a year doing a very successful

podcast every year the government in the

UK is going to take 40 cents of that 40%

of it if you own a million dollars in

stock and it goes to two million you

don't get taxed on it till you sell it

yeah so just never sell it never sell it

and that's what elon's doing with his

companies people say he's got you know

$200 billion whatever in fact he's

borrowing taxfree against those

companies and then when he finally needs

to sell it to pay off some of those

loans he moves to Taxas despite the fact

he built all his wealth in

California smart I think one of the

Great advant ages of life is um as it

relates to wealth creation is really

getting good tax advice because I've sat

here over and over again with people

that have great tax advice and some

people who didn't have any at all and

the outcomes are quite frankly um

shocking the variance and outcomes are

quite frankly shocking from one person

going bankrupt to the other person

becoming a multi-billionaire and it

comes down to some of it comes down to

their tax strategy and how they thought

about tax and have you know being around

a lot of people now that are Masters in

tax it was like yeah describe it as

someone pulled back a curtain that I

never knew was there and all these

people were doing magic behind this

curtain and no one ever told me that

curtain existed and it's called tax we

don't all pay the same tax because we're

not supposed to talk about it again not

talking about it is rich people trying

to keep poor people down yeah because

rich people talk about their taxes all

the time brightest woman in my entire

professional universe is a woman named

Lucy Lee who is my tax Yoda who works at

a big Law Firm that I pay 1,800 bucks an

hour or two to figure out the smartest

when I set up a company I talk to my tax

person

when I'm about to get a big payment from

my podcast Distribution Company I talk

to my tax person first this is it is

everything but the key when you're young

is to become an owner not an earner

you're an earner you want to bust a move

out of earning and develop an army of

capital that goes out and kills for you

at Night 500 bucks is a lot of money

when you're 21 500 bucks when you're 21

is 10,000 when you're my age right and

it's going to go really fast so just

start and then once you become a super

owner you have 10,000 50,000 100,000 a

million dollars in assets then then you

can become a super tax

avoider that sounded awful that sounded

awful that sounded

awful sitting here with your bucket of

sand

oh my God a bunch of mil that's right

talking about this is how we [ __ ] the

middle class St this is how we really

screw over the little

guy what is your Capital allocation

strategy how do you invest your money um

this is you know this is the thing

people want to know most about you I

keep it as painfully simple as I

possibly can so literally my entire net

worth is cash a house and index funds

and some shares of Marquel while I'm on

the bo directors and that's it there's

nothing else my entire I can summarize

everything so easily and so cleanly and

truly that's it and it's not even like I

have 20 bank accounts I I have one bank

account one brokerage account like in a

house and that's it so simple why why

index

funds you're the reason I your Capital

allocation strategy is almost identical

to mine I want to talk about the house

thing as well but um after reading your

book I stopped trying to pick stocks and

I invested all of my available Capital

into index funds outside of investing it

in starting companies so I'm a

shareholder in I don't know 50 60 70

companies I all my other available

capital is invested in index funds and

then I have a very long-standing large

position in ethereum which I've held for

like six years or something yeah which

has done me very well yeah that is it

and the ethereum investment is also

based on the fact that I run a software

business that is in blockchain and I

could see that developers are building

on top of ethereum more than any other

blockchain so that Insight was really

beneficial to me and six years so even

with the big fall of the last two years

you're still up a lot yeah I I think

your book taught me that successful

investing is when you lose the password

to your investment account yes that's

exactly it I don't actually think you

said that in there but that's like when

I lose the password to my investment

account I'm so proud of myself because

it means I haven't checked it in

forever and so it was funny cuz you were

coming today I thought oh yeah well I

have all this money in these index funds

I'll check it and I thought [ __ ] I don't

know the password I good that's why

you're going to do okay the reason I do

this what's important is that I am not

one of the people who says nobody can

beat the market so therefore use index

funds that's not what I believe I think

there I think it's extremely hard to

beat the market and very few people will

do it but I think there are really smart

people who can do it and people who I

know who I could invest with the reason

I don't is not because I don't believe

it can be done it's because the variable

that I want to maximize for in my

investments is endurance if I can just

earn average returns for an above

average period of time it's going to

lead to amount of success that will

literally put you in the top 5% of

investors my parents are a great example

of this my parents are smart people but

they really they have no Financial

background and they have like minimal

financial interest I would say and but

they have dollar cost average into index

funds for going on 40 years now and

literally if you look at their returns

they've never sold anything ever and

literally if you look at the returns

they'd probably be in the top 3% of

professional investors what is for

anyone that doesn't know what is dollar

cost averaging and what is an index fund

dollar cost averaging means you buy the

same dollar amount of Investments every

single month come hell high water

doesn't matter what the stock market's

doing recession boom bust you say I'm

going to put $100 or whatever it is in

the stock market on the first of every

month now most people who like have a

401k at work are doing this whether they

know it or not they have $100 or

whatever removed from every paycheck and

it goes into the funds that they own and

they don't have to do anything whether

you know it or not you're actually doing

it the contrast to that would say I'm

going to buy and sell based off of how I

feel in the stock market I wake up I

watch CNBC I decided to sell and I'm

going to put it back in when I feel

better about the market it's the

contrast to that an index fund is just a

single fund that owns hundreds or

thousands of stocks within it and if

it's diverse enough if it's big enough

really what you're doing is you're

owning a slice of the global economy

which is how I think about it it's

thousands of individual stocks in there

Tesla Apple whatever it would be but

really what you're doing is you're

owning a slice of capitalism if I was

your son and I said Dad prove to me that

that's a better long-term wealth

creation strategy than buying crypto or

buying companies that I use or like how

would you explain that to your to your

kid your ability to do well over the

next one year or five years is going to

have no role whatsoever on your lifetime

ability to generate wealth all that's

going to matter is not what are the best

returns you can earn all that matters

are is what are the returns that you can

sustain for the longest period of time

all that matters is your endurance it

doesn't matter if you can double your

money this year or even double your

money again the next year all that

matters is can you stick and keep it

going for 50 years that's where

compounding comes from prove it all

because the formula for compounding is

returns to the power of time that's not

quite it but like more or less that's it

so in that equation if you understand

the math all of the heavy lifting comes

from the exponent give me a case study

where someone has followed that strategy

and done well okay here's one way to

explain it that I use in the book 99% of

Warren buffets net worth was accumulated

after his 60th

birthday after he turned 60 years old

99% of his wealth Jesus has been

accumulated after that period because

the longer you hold that four the

crazier the numbers get when he was 60 I

think he was worth about $3 billion lot

of money he's a multi-billionaire but

now that he's 90 he's worth over hundred

billion and he's given like a 100

billion away to charity so if he didn't

do that he'd be worth he'd go from 3

billion to 200 billion since he's been

60 cuz the numbers just get crazier at

that point he's worth 100 billion so if

his if his Market if his net worth goes

up 10% in one year he makes1 billion

which is three times that he was worth

when he was 60 so that's when you look

at somebody like Buffett is he a great

investor is he a great stock picker of

course but the real secret to his

success is that he's been a good

investor for 80 years and if he had

retired at age 60 or at age 50 nobody

would have ever heard of him he would

have been like one of the other

multi-billionaires who lives in Florida

and plays golf and like you've never

heard of him the reason he use a

household name is because he's been

doing this non-stop since he's since

he's been 11 years old and he's never

stopped it's just the endurance that's

made him so wealthy not necessarily the

annual returns patience it's a difficult

thing it also reminds me of the story

that you talk about in the introduction

of your book about the janitor Ronald

James Reed yeah who when he died in 2014

age 92 had a net worth of over 8

million and he was a janitor how did he

do that he took what very little money

he could save from his job as a janitor

mopping floors at the gas station he put

it in stocks and he left it alone for 70

years and that's it that's all you need

that's all you need to do if you have

endurance in your investing and you can

keep it going for years or decades you

don't need to be a genius stock picker

and not only do you not need to do it if

you have endurance you're going to beat

literally 97 or 99% of the genius stock

Pickers and what's so interesting about

it is like picking the right stocks is

hard it's supposed to be hard like

there's no world in which everybody who

tries to beat the market is going to do

it of course it's hard just like being

an NBA player is hard and but having

endurance is like largely in your

control it's so much easier to just be

patient than it is to pick the right

stocks every single day now I think some

people nature nurture some people like

probably Ronald Reed and my parents just

understand it naturally it's not hard

for them to be patient but do like there

are professional investors who work 80

hours a week for 30 years to try to beat

the market and they can't do it not only

some that that explains like most of

them and even the ones who can do it are

maybe going to beat the market by half a

percent per year one% per year but if

you can have endurance that is that's a

bigger benefit than you can have by even

being like a very successful stock

picker like somebody who outperforms the

market by one percentage Point per year

and they can do that for 10 years that's

amazing that's like Mount Rushmore

investor but somebody who earns average

returns and doesn't for 20 years is

going to have way more money you do it

for 30 years you're going to be Filthy

Rich You' be like Ronald Reed you can be

a janitor who leaves eight million to

charity when you die is buying a house a

good or bad financial decision my

brother who works in my company and he's

the one that introduced me to your book

many many years ago said to me something

along the lines of Steve don't buy

houses to make money because you have

the ability to play a different set of

games that very few people can play yeah

and what I mean by that is he kind of

explained it to me go listen everyone

can buy a house so returns there aren't

going to be huge go find a game that

like only you can play you'll get bigger

returns if you're buying a house because

you think it's going to be a good

Financial investment stop like even if

it turns out in hindsight that it was it

doesn't matter I think these are just

purely lifestyle decisions and I think

so many people get screwed up when

they're in a spot in their life where

they should be renting because they need

to be mobile they need to move around to

a new job new career new school whatever

it is but they end up buying because

they think they're going to make money

doing it and that's like that's the

problem so I own a house

and if I ended up losing money on it I I

I don't think I'd care that that's not

why I'm owning it I'm owning it just

because I want the stability for my

family people people buy houses because

they think that they're making loads of

money from because there have been

periods in time in which people have

made loads of money historically like

that's the anomaly historically in the

US and the UK housing prices adjusted

for inflation go nowhere it's just been

the last 20 or 30 years that there's

this very brief window of time that

owning a house was a great investment

Robert Schiller won the Nobel Prize

about a decade ago for is work in

showing that over the last 150 years in

the United States adjusted for inflation

most home prices have been flat as a

pancake it's just the last 20 years that

have inflated people's expectations of

what a house can

do statistically there's going to be at

least one person listening to this that

has made an offer as we speak for a

house under the assumption that it's

going to help them stack

wealth if they were purely doing it for

those reasons what would you tell them

do instead if that's purely the reason

run for run for your life don't do it

particularly I mean it it used to be and

maybe it still is like this in many

cities in America in the UK but it used

to be that rentals were almost without

exception shitty houses there were no

good rentals a big change at least in

America in the last 20 years is that

most big cities have tons and tons of

luxury apartments to live in and that

are great places to live and they're in

the city centers and they got beautiful

granite countertops and they're great

places to live don't fall for the idea

that you can't live well if you're

renting I think that's that's that's the

problem and realize that if you're doing

it for financial reasons you're probably

about to borrow a shitload of money for

an investment that historically has been

a very bad investment like if you put it

in those terms like what are we doing

here man you're going to borrow hundreds

of thousands of dollars for an

investment that historically has been a

loss that's what you're doing here does

you feel good about that that's what I'd

say to that person

got

speed I I would love to be in the room

somewhere where that person has just

looked at their partner after persuading

them to make that offer because it was

going to make them Rich sorry

guys so to make sure I I and everyone

listening understands what what the

blockchain is it's this public can think

of it as this database in the sky and

the database in the sky is checked by

everybody who has their computer on and

is interacting with the dat datase in

the sky so you no longer need a

government or a bank checking the

transactions and the and the contracts

in the database in the sky because now

all of our computers that are on

interacting with it are in the

background checking that if I send you

one Bitcoin if I do something on this

database in the sky it

is um in accordance with the history of

the database and um it is in line with

that database yeah what and to to make

it less complicated it just makes it a

source of Truth okay in a world where we

don't even know who is who online who

owes each other what any of these

things we now have source of truth that

everybody can agree on and everyone can

see and everybody can see and you don't

need to trust anybody and so that as a

technology solves many things problems

that we don't even know we've got

because they're so part of

how we

exist so the technology is not about

money the technology is

about

truth

and exchanging value and creating value

in a digital age now what is interesting

and Powerful about this

technology is we've seen Technologies

similar before the

internet we've seen Broadband we've seen

these big global infrastructure

things most of those the internet was a

public service

good Broadband was all built private

sector we didn't get to make money out

of these things really Amazon made the

money or or whoever it was building the

Broadband they all went bust as well

what we've got here is this very clever

thing that everybody in this Block Chain

gets rewarded for the role that they

play in maintaining the blockchain in

maintaining the blockchain and because

these things are scarce and let's say

Bitcoin being the most classic example

there's only 21 million that will ever

exist you've created this scarce asset

that is a reward system so the people

who mine the Bitcoin they use the

electricity to solve the algorithm to

get the Bitcoins to make sure there's

only 21 million well they get rewarded

the people who verify the chain get

remed and then we can buy the asset

which is actually us

investing in the future use cases of

this thing are people going to use it

for storing wealth or building stuff so

now you get this Global infrastructure

layer of which people can invest now

let's go back to the example of

ai

ai 99 % of people listening to this will

not be able to invest in it apart from

buying some of those big public

companies because they're not accredited

investors they're not allowed they don't

get to see it an Insider all of this

stuff this is the

inverse it is

fractional so a Bitcoin you don't have

to buy one at 60 whatever thousand it is

today you can buy

fraction so remember we talked about

property and the guys who own the big

highend property make all the

money none of us can buy the $50 million

apartment in Manhattan and then do it up

and flip it for 250

million now

blockchain we can all put 10% of our

paycheck in it do you think people

should yeah and more but the point being

is this is the only globally homogeneous

asset on Earth it's the same in Nigeria

as it is in Brazil as it is in London as

it is in Silicon Valley as it is in

India as it is in Pap

Guinea and everybody is on an equal

footing you can put the same percentage

of your worth in it okay that is

mind-blowing and it bypasses the banking

system The Brokerage system and all the

other incumbent things that get in the

way of a Nigerian buying an

International

Investment so we've got a playing field

that's leveled in the fastest growing

technology of all time in the fastest of

pretesting asset in price terms of all

time in the shortest period of time that

is globally available to

anybody and then you realize holy [ __ ]

okay this is important now why that's

important is

because having more investors in it

means the it becomes more valuable which

means you're more likely to secure it

people want to join the network to earn

some of these tokens to secure it the

more use cases get built upon it because

people are making money and it

bootstraps it's behavioral economics

it's an incentive based system to

bootstrap the most ridiculous startup

idea of all time which is I'm going to

entirely disrupt money and create a new

internet I mean that's laughably stupid

and that's what's happening one of the I

run a company called um third which is a

web three infrastructure business we

we've raised quite a lot of money for

the company about $30 million now and we

have a big team and it's interesting for

me to observe the use cases because

people come to third web to build on the

blockchain and one of the really

interesting use cases we've seen over

the last I'd say 12 months that's really

exploded is is gaming people

building uh web 3 blockchainbased games

because if you think about games like

FIFA which is a huge game obviously the

UK where we're big soccer fans or other

games like you know um RuneScape back in

the day where you have Assets in the

game in FIFA you have a messy card in

RuneScape you might have a sword the

thing that the blockchain now enables us

to do is to take those assets from the

game and actually trade them outside the

game so I can if the if the sword was on

the ethereum blockchain even though I'm

not inside the game I can trade that

sword on the ethereum blockchain and so

one of the most exceptional use cases

we've seen at third web is people

building AI games sorry people building

web 3 games because these assets are now

valuable it's great for the game

developer they've now got this brand new

economy for their for their company and

it's great for the people that own those

assets in the game because they've now

those assets are now more valuable

because more people can access them and

if if I own ethereum yeah if I own an

ethereum token yeah which I Do by the

way I've been stacking it and refusing

to sell um but how do I benefit from the

fact that games are now being built in

ethereum and it's really simple if we'd

have all been given shares in Facebook

when it started we'd have all been

hilariously rich but we didn't the VC's

got it and then it went to the public

market and then you have to have a

brokerage account you have to be

approved right what this is happening

you buy an ethereum token

today if ethereum ends up becoming

bigger and more uses your token value

goes up it's as simple as that so you

get to participate in an entire

technological Revolution really simply

from your mobile phone and you don't

need anybody to approve it or do

anything yes there's regulation stuff

but simple stuff like that it's pretty

straightforward for almost everybody in

the world so therefore we talked about

how do you invest in your disruption and

the future of technology okay here's one

where you can really do it

and it's easy to do a couple of

questions here then so you said it's

easy to do yeah let's talk

practicalities how do does one do it I

can do it on my phone I have to call

someone how do I invest in crypto you

just open a crypto account yeah um with

one of the big crypto provid coinbase

Kraken crypto.com who are in a Gemini

what about this though my bank my

digital bank is offering me to buy

crypto on there should I do that yes you

can and you could do it bya PayPal

starts somewhere I'm not going to say no

but you will go down the journey that

everybody goes down which is the easiest

on ramp is the best revolute whatever I

don't care just do

it get a feel for what it's like to own

an asset that goes up and down a

lot particularly down when it goes down

it makes you feel terrible and you got

to learn about how to deal with it and

then because it goes up over time if you

don't do anything and you've chosen a

good quality asset that's provable as a

as an asset in itself it'll probably go

up over time in fact highly likely to go

up a lot and then you'll start thinking

do you remember Ral saying that the bank

owns the stuff and I don't own it and

then you might say oh but the magic here

is unlike the bank where I can't take

more than 10 grand

out I can put it all on my little Ledger

device because what's a ledger device a

ledger device is it's actually it's a

company provides it but what it

is because this is just an address on a

blockchain and think of it is like your

mailbox you can send stuff to it but you

can't actually take it

out like your email somebody can't read

all your emails but they can send you

emails well that that part that's

private that

secure Pass Key essentially

well you keep that to yourself and it's

stored on a device and there's a

complicated way of doing it and you'll

have to go through that which is you

have to have this seed phrase that does

it this technology will change quite

soon you know fingerprints face prints

and a bunch of other stuff but basically

a little USB stick will secure that you

can go and put in the safe or go and

take it to your Nan's house or whatever

it is can

secure your money that it's only yours

and nobody can take it out I have mine

on a ledger so I have my ethereum on a

small it's kind of like a small USB

stick and then that USB stick is

protected by like 24 words or whatever

it is that's right and those words are

on pieces of paper in different

countries at the moment that's right um

and it means that no matter what happens

no matter where I am in the world no

matter who comes for me I can always

retrieve the x th000 ethereum that I

have on this Ledger device yeah um

unlike a bank where my my account could

get Frozen by the government or they

could empty my bank they could freeze my

bank I can I will always have that value

and also you know there's a famous

example of the conversation of gold in

the United States and it's been done in

many countries in the past the good

thing about this magic internet money is

you have to physically cross borders

with it yeah yeah think of all the

Jewish people who had to take money and

diamonds and gold out of Nazi Germany

and out of Europe

it was hard to do here you don't have to

do anything you just need to remember a

seed phrase a seed phrase being

basically a string of words yeah yeah do

you know for people that are in that

paycheck to paycheck cycle which I was

in for many many years of my life where

I'd get paid for my call center I'd go

and spend the money I'd pretty much

spend all the money within the first

couple of days of getting the paycheck

and I was just waiting the next three

weeks for the next

paycheck what advice would you give them

about getting out of that cycle cuz it

because you almost feel imprisoned by

that cycle if you're in absolutely well

before I give the advice I want to

explain to that person what's happening

because you are the Prime customer for

our economic system Banks love you

because they can sell you payday loans

they can sell you credit cards they can

sell you lines of credit and they can

keep you in debt for the rest of your

life which means you keep making the

bank Rich corporations love you because

you're not going to think twice with

when we show you this nice bag when we

show you this nice vacation you're going

to want this stuff and so we love

selling you this stuff the government

loves you because you're going to pay

the highest

taxes employees pay the highest

taxes and so when you're in that

situation you are making everybody else

Rich at your

expense and so if you want to break out

of this the first thing is you got to

understand you need to make yourself

rich before you make everybody else Rich

because when you're spending all your

money you are putting your money into

their pockets and you have to stop that

you got to keep that money for yourself

you're in a boat think of it this way

you're in a boat and this boat has water

just flowing in and you are sinking and

you got to start by sealing the holes

and that means you got to stop the

spending so if you are in what I call

the financial danger zone which is you

don't have $2,000 saved up for an

emergency and you have credit card debt

if you are in that situation you are in

the financial danger zone and you have

to make drastic changes that means right

now no more eating at restaurants no

more vacations no more doing anything

that doesn't put money in your pocket

and no more Netflix right and the reason

why I say this isn't because you're

going to save $15 a month it's so you

can save two hours of your time a day

the average American is watching more

than 2 hours of Television a day and if

you don't have $2,000 saved up if you

have credit card debt you cannot afford

those 2 hours a day being wasted on TV

and that means right now you have to go

out and start using the time to learn

start using the time to work and start

using the time to make some extra dollar

so what do you do start selling stuff

stop spending money selling stuff you

own selling stuff you own so if you have

a TV that you're not using sell it you

have a car that you can't afford sell it

if you're living in a house that you

can't afford sell it downgrade move

smaller and then work to earn more money

I've got to say the couple of things

that I came to mind is you were saying

that and funnily enough I put myself in

the shoes of 18-year-old Steven Bartlett

when I was in that small apartment with

three or four immigrants in Mosside rush

home and I was you know my rent was

nothing my rent was a 1,000 150 a month

which I could not afford and I could not

pay and I was intermittently working

between call center jobs and whatever

money I got I spent and part of the

reason I spent it just pre is because

like many people watching especially men

who sometimes feel the need because of

the way Society is I was trying to get

laid at the same time and it's hard yeah

when you're a young man and I say young

men in particular because the stats do

support the fact that there is an

expectation that men pay um when you're

a young man it's particularly difficult

to to do all of these things to cut back

and also get laid and what am I going to

do defer getting laid for 10 years when

I say laid I'm really saying meeting

someone and falling in love and having a

having a life so what do I if I if I'm

living in a shoe box which I was I can't

bring anyone back there I can't take

anyone for dinner I can't take anyone to

the movies what do I do and this is why

every Indian parents tell their kids to

become a doctor so their son can get

married it's the same concept but here's

the thing you have to pick your hard

either life's going to be hard now or

it's going to be hard for the rest of

your life and you have to pick what's

more important to you right now and you

know if we talk about balance if you

want to have a balance of everything

where you want to find a girl and you

want to make money and you want to stay

healthy you are dividing your attention

everywhere not saying it's impossible

but very few people can actually do

everything all at

once and if your number one goal is to

become wealthy if your number one goal

is to turn your finances around you have

to get serious about it because

where you put your attention is where

you get the results and so if you want

to be in a better financial situation

you were going to have to make

sacrifices and it's difficult I can't

come here and tell you it's going to be

easy yeah because that's going to be me

lying to you I got to be honest I did

make a sacrifice and for me the

sacrifice was I started a business and

frankly that meant that I didn't have