Millionaires Are Made

It's not important who you are, you need to be investing something every month. As usual, below is the live video for you visual people, the speech typed for you readers, and a link to the podcast for you listeners. Learn the basics to investing, and it's not just about money, there are many other areas in which you can invest!

Two Morons Talking about - Simply Investing

When I hire someone, I tell my new teammates they should be millionaires (worth $1 million) in 5 years. How will they do that? How will you do that? Does that mean they need to increase their salary to $1 mill a year? Of course not. To be in the 1% you need an income of $500k. But that’s not what I'm telling them. Networth is very different than income. Earn $500k and spend $500k makes you simply a loser, or at best a neutral. Make 500k, spend 200k and invest 300k, and you are winning. To get into the 1% net worth, you need $11 million.

So, how do we take our income and turn into a higher net worth? STOP SPENDING IT ON STUPID SHIT! Go check your credit card statements!

Who drives a 1997 275k ford f150? Who else now has a 50 car fleet after years of driving it? Keep expenses low!

What are your monthly expenses? Get a cheap car and lower insurance while at it, fuel efficiency is still a thing. Share a house. Roommates shrink your biggest expense. Do you really need that unlimited cell phone plan?

I've talked a lot about the future lately and why you always need to think about it now, in the present. This goes hand in hand with the time value of money. Money now is more important than money in the future. $500 now is worth more than $500 in 5 years. INFLATION! You know the old saying a bird in the hand is worth two in the bush…..same idea here.

You spend $200 on clothes now. Will it pay off as a good investment? Maybe. Does it land a new client that earns more than you would in the stock market? Then it’s a good financial investment. Or is it just for fun? Does it make your social life excel and improve your personal brand? Well, maybe it’s a social investment. Will the trip to Peru to do Allowasca pay off spiritually? Then maybe it’s worth it. These are the things you need to decide. Then compare it to if you invested in other ways.

When I invest into a financial tool, I need a 20% return or greater.. I'm a numbers guy (remember my math econ degree) and avid investor. Some great investors say 10% is a great return, so let’s use that number. That 500 you spent, does it earn $550 back in a year to build your financial health? Will it increase your goals/revenue/networth by $50 more than another suit or another option? Then get it.

OR should you have put it into the stock market to compound? When you invest, most tools have a sort of compounding. This means the 10% return each year gets bigger and bigger. With stocks, the value increases an average of 10% per year. At the end of the year, you have more than you started. The next year the 10% is based of this new higher amount. So, it also grows. And it does it every year.

$5 per day into a 10% tool (like the stock market) will turn into $29,000 in 10 years. Only $18k is what you put into it. So, you basically got $10k to not spend your money. That’s a pretty cool job right?

So, if the suit is going to generate more than these returns (social, new business, mental self esteem etc) then buy it! But, if not, then invest it!

There are so many factors, and I purposefully spoke about the future, and the 6 aspects of life before this talk. Check out my earlier talks to get a better understanding. Weigh all the risks and opportunity costs to determine where you should be investing. And also, talk to your future self!

Now, if you choose to invest in a financial tool like stocks, here’s the most simple way I can explain it. Also, I don’t give a shit what your income is, you all better be investing!

Here’s how to start. Download 3 apps. Robinhood, Coinbase and Webull. I have free stocks on all of them, so meet me after! Now, think about the future (weird we keep doing this right?). I think we have confirmed that crypto (maybe not bitcoin) is here to stay. So, think of 10 years from now. What do you think will be the top 10 companies and/or cryptocurrencies?

Amazon? Google? All of my companies? Jokes aside, pick your top 10. I would suggest to do 8 companies and 2 crypto. Now, we you download those apps, set up recurring deposits. How much can you afford. How many Starbucks can you give up? Start with $1 per month per company. That’s $10 a month. Can you handle that? Awesome. In 6 months, step it up to $5.

If you are certain that amazon will be growing and bigger than today, invest in them. Do you use them? Do you have Prime? Why not make some money on stuff you already use? Are you on Facebook everyday? Will it be here in 10 years? Go invest in it. Set up recurring, and watch your account grow.

The path to a higher net worth is investing. The simplest way is through one of these simple apps. Start today, start now. Come meet me after and I’ll hook you up with some free stocks to start!

Millionaires are made