Full Transcript
https://www.youtube.com/watch?v=GWnEUUNtw3c
[00:00] I recently read Scott Galloway's best-selling book, The Algebra of Wealth.
[00:04] This book has a simple formula for building wealth, which is focus plus stoicism times diversification times time.
[00:14] Now, here's the thing.
[00:16] Three of those things are multiplied together.
[00:19] So, if any single one is zero, your wealth is zero.
[00:25] It doesn't matter how hard you work.
[00:27] Doesn't matter how much you earn.
[00:29] And after reading the book, I realized most of us have at least one zero in our formula and don't even know it.
[00:36] So, let me show you how to fix that and share with you the rules wealthy people follow.
[00:40] Rule one, learn how the money game works.
[00:44] Rich people have plenty of cash, but they almost never spend it.
[00:50] Instead, they borrow.
[00:52] And once you see how it works, you'll understand why.
[00:54] Say you have $10 million in stocks.
[00:57] Should the government tax that?
[00:59] Most people would say no, because you haven't sold it.
[01:02] say no, because you haven't sold it.
[01:02] It's not real money yet.
[01:04] The market could crash tomorrow and it's gone.
[01:07] Okay, fair enough.
[01:07] We can't tax it because it hasn't been sold yet.
[01:09] But then you want to buy a $2 million house.
[01:12] So, you go to a bank and say, "Lend me the money and here's my $10 million in stock as a guarantee."
[01:19] And the bank says, "Sure, here's your loan."
[01:23] So, wait a second.
[01:26] You can use your stocks as money when you're borrowing, but it's not money when it's time to pay taxes?
[01:33] Exactly.
[01:33] That's the game.
[01:36] The loan isn't taxable.
[01:40] It's debt, not income.
[01:40] This [snorts] is how the wealthy play the game.
[01:41] Instead of selling their assets and paying taxes, they borrow against them.
[01:46] The assets keep growing, they get the cash they need, and the taxman gets nothing.
[01:54] Now, think about you.
[01:57] You earn a salary.
[01:57] The taxman takes his share before the money even hits your account.
[01:59] You don't get a say in it.
[02:02] get a say in it.
[02:02] Income is for workers.
[02:04] Income is for workers.
[02:04] Debt against assets is for owners.
[02:08] Debt against assets is for owners.
[02:08] You can't do this with small assets, but
[02:10] You can't do this with small assets, but now you know how the game is played.
[02:12] now you know how the game is played.
[02:12] Build the assets first and then you can
[02:14] Build the assets first and then you can play the same game.
[02:16] play the same game.
[02:16] Rule two,
[02:17] Rule two,
[02:17] use your biggest weapon.
[02:19] use your biggest weapon.
[02:19] You might be poor in terms of money, but
[02:22] You might be poor in terms of money, but you are rich in one of the most
[02:24] you are rich in one of the most important currencies,
[02:26] important currencies, time.
[02:27] time.
[02:27] Say your friend starts investing at 20.
[02:29] Say your friend starts investing at 20.
[02:29] At 30, he stops completely.
[02:32] At 30, he stops completely.
[02:32] You start at 30 with the same amount, but you invest
[02:35] 30 with the same amount, but you invest until you are 60.
[02:37] until you are 60.
[02:37] So, you invest three times longer and
[02:39] So, you invest three times longer and three times more money.
[02:41] three times more money.
[02:41] You still end up with less money than
[02:43] You still end up with less money than your friend.
[02:45] your friend. Not because he was smarter,
[02:45] simply because he started earlier.
[02:48] simply because he started earlier.
[02:48] Money invested early compounds.
[02:51] Money invested early compounds.
[02:51] Skills built early compound.
[02:55] Skills built early compound. Everything compounds when you have time.
[02:58] compounds when you have time. The only thing that doesn't is waiting.
[03:01] thing that doesn't is waiting.
[03:01] Rule three, pick the wave, not the
[03:03] Rule three, pick the wave, not the surfboard.
[03:05] surfboard.
[03:07] You can be the hardest working person in a dying industry and lose.
[03:09] a dying industry and lose.
[03:12] average in a growing industry and still win.
[03:15] win. A mediocre employee who joined tech in 2010 built more wealth than a
[03:17] brilliant employee who joined a
[03:19] newspaper the same year. Same effort,
[03:22] same hours, different waves. One
[03:26] industry was exploding, the other was
[03:28] dying. It didn't matter how hard the
[03:30] journalist worked then.
[03:32] So, ask yourself, what industry are you in?
[03:35] Is that wave rising or falling?
[03:38] If you're on the wrong wave, no amount of
[03:40] paddling will save you. Pick the wave
[03:42] first, then worry about the surfboard.
[03:46] Rule four, don't follow your passion.
[03:50] You've heard this a thousand times,
[03:52] follow your passion. Do what you love
[03:54] and you'll never work a day in your
[03:55] life.
[03:57] Here's what they don't tell you. That
[03:59] advice usually comes from people who got
[04:01] rich doing something boring. Software,
[04:04] Rich doing something boring. Software, logistics, finance.
[04:06] Logistics, finance. Then they romanticize it afterward.
[04:09] Then they romanticize it afterward.
[04:12] Most people under 26 don't even know what their passion is.
[04:13] Instead, follow your talent.
[04:18] Talent is what you do easily that others find hard.
[04:20] Master it. Get paid well.
[04:24] Then enjoy your passions on weekends.
[04:27] Steve Jobs loved calligraphy and meditation.
[04:30] But he didn't start a calligraphy business.
[04:33] He went into computers.
[04:34] He followed his talent, not his passion.
[04:38] When you put your focus into your talent, you'll become a master of it.
[04:41] That's when you'll find your passion.
[04:44] Get the order right. Rule five. Focus your time, diversify your money.
[04:47] Your time should be focused. Pick one thing. Go deep. Specialize.
[04:50] On the other hand, your money should be diversified. Put it in different assets.
[04:52] Never bet everything on a single
[05:05] Never bet everything on a single investment.
[05:08] One bad bet shouldn't wipe you out.
[05:10] But here's the problem.
[05:12] Most people do the exact opposite.
[05:14] They scatter their time and focus across the job, a side hustle, a YouTube channel, a crypto project, and a drop shipping store.
[05:19] Five things, none done well.
[05:23] Then they take all their money and put it in one stock.
[05:27] Time scattered, money concentrated.
[05:29] That's the recipe for staying broke.
[05:32] Flip it.
[05:34] Focus your time on one thing until you're world-class.
[05:37] Diversify your money across assets so no single failure destroys you.
[05:41] That's the recipe for wealth.
[05:44] Rule six.
[05:48] Don't day trade.
[05:51] Slot machines have better odds than your trading app.
[05:56] That's not a joke.
[05:58] Almost everyone who day trades loses money over time.
[06:00] You've probably tried it yourself.
[06:02] Made some trades, maybe even won a bit.
[06:04] That little win is the trap.
[06:07] That little win is the trap.
[06:07] That's how gambling works.
[06:09] That's how gambling works.
[06:11] One in four people who day trade have gambling problems and most don't even know it.
[06:13] Professional traders have Bloomberg terminals, expert teams, and math PhDs running algorithms.
[06:15] Their entire job is to take money from people like you.
[06:19] That's who you're up against.
[06:23] If you're doing it, stop.
[06:25] Put that money in index funds.
[06:28] Forget it exists for 20 years.
[06:30] Your future self will thank you.
[06:34] Rule seven.
[06:37] Forget work-life balance.
[06:40] You're grinding.
[06:42] No vacations, no balance.
[06:44] Your friends are partying while you're working on weekends.
[06:46] Good.
[06:48] Work-life balance in your 20s is a fantasy.
[06:51] Chase it and you'll be mediocre at both work and life.
[06:52] Forget balance.
[06:54] Figure out which phase you're in.
[06:56] In your 20s and 30s, you're building.
[06:58] Work dominates.
[07:01] You're paying rent on future
[07:09] dominates.
[07:09] You're paying rent on future freedom.
[07:09] You lay the foundation now.
[07:12] freedom.
[07:12] You lay the foundation now.
[07:12] In your 40s and 50s, you're harvesting.
[07:14] In your 40s and 50s, you're harvesting.
[07:14] You slow down.
[07:14] You enjoy what you built.
[07:17] You slow down.
[07:17] You enjoy what you built.
[07:17] The foundation pays you back.
[07:20] The foundation pays you back.
[07:20] Most overnight successes took 15 to 20 years
[07:23] overnight successes took 15 to 20 years
[07:23] of invisible grinding.
[07:25] of invisible grinding.
[07:25] You just didn't see the building phase.
[07:27] You just didn't see the building phase.
[07:27] Here's the trade-off.
[07:29] Here's the trade-off.
[07:29] The people with balance at 25 won't have options at 45.
[07:32] balance at 25 won't have options at 45.
[07:32] The people who grind at 25 get to choose
[07:36] The people who grind at 25 get to choose
[07:36] at 45.
[07:36] It's okay to be unbalanced right
[07:39] at 45.
[07:39] It's okay to be unbalanced right
[07:39] now.
[07:39] It's temporary.
[07:39] It's strategic.
[07:43] now.
[07:43] It's temporary.
[07:43] It's strategic.
[07:43] Rule eight, build when times are hard.
[07:47] Rule eight, build when times are hard.
[07:47] When the economy crashes and everyone
[07:49] When the economy crashes and everyone
[07:49] panics,
[07:50] panics,
[07:50] that's the best time to build wealth.
[07:53] that's the best time to build wealth.
[07:53] Microsoft and Apple were founded during
[07:55] Microsoft and Apple were founded during
[07:55] the 1975 recession.
[07:55] Airbnb, Uber, Slack,
[07:59] the 1975 recession.
[07:59] Airbnb, Uber, Slack,
[07:59] WhatsApp,
[08:00] WhatsApp,
[08:00] all founded right after 2008.
[08:03] all founded right after 2008.
[08:03] Hard times give you two advantages.
[08:06] Hard times give you two advantages.
[08:06] First, assets go on sale.
[08:06] Stocks, real
[08:09] First, assets go on sale.
[08:09] Stocks, real estate, everything is discounted.
[08:11] The estate, everything is discounted.
[08:13] The people who buy during fear become rich during recovery.
[08:15] during recovery.
[08:15] Second, you're forced to grow.
[08:19] No easy money, no shortcuts.
[08:21] money, no shortcuts.
[08:23] Everyone waits for the right time to invest, to build, to take risks.
[08:26] invest, to build, to take risks.
[08:28] The right time is when everyone else is running away.
[08:29] running away.
[08:32] Easy times make you soft.
[08:33] Hard times make you sharp.
[08:35] If things are hard right now, don't wait for it to get easier.
[08:37] for it to get easier.
[08:40] By the time it does, everyone else will be back.
[08:42] The window will be closed.
[08:44] Rule nine, treat your 20s like a workshop.
[08:46] workshop.
[08:48] Your 20s are supposed to be messy.
[08:50] Different jobs, different approaches, different failures.
[08:52] You're not supposed to have it figured out.
[08:54] You're supposed to be collecting data on what works for you.
[08:56] you.
[08:57] Think of it like this.
[08:58] Your 20s are the workshop.
[09:01] Experiment, try things, break things, learn what fits.
[09:04] fits.
[09:05] Your 30s are for mastery.
[09:07] Pick your thing, get genuinely good at
[09:10] Pick your thing, get genuinely good at it.
[09:10] Your 40s and 50s are for harvesting.
[09:13] it.
[09:13] Your 40s and 50s are for harvesting.
[09:13] Reap what you built.
[09:15] Reap what you built.
[09:15] The problem is we compare ourselves to
[09:16] The problem is we compare ourselves to people at different phases.
[09:18] You see a successful 40-year-old and feel behind.
[09:21] But you're not comparing fairly.
[09:21] They've had 20 more years in the game.
[09:23] It's okay to not have it figured out.
[09:26] You're in workshop mode.
[09:28] Just don't stay there forever.
[09:31] Rule 10, know when to to
[09:33] Never give up.
[09:36] That's what they tell you.
[09:37] But all successful people have quit something.
[09:40] The skill isn't refusing to quit, it's knowing when to walk away.
[09:42] You picked a career.
[09:45] You've been at it for years.
[09:47] It's not working.
[09:50] But you've invested so much time.
[09:52] So you stay.
[09:53] Or you started a business.
[09:55] It's barely surviving, but quitting feels like admitting you were wrong.
[09:58] So you stay.
[10:00] The person who made that decision had less information than you have now.
[10:01] Circumstances change.
[10:03] Markets change.
[10:05] You change.
[10:10] You change.
[10:11] The author had a company that failed slowly over 10 years.
[10:13] slowly over 10 years.
[10:15] Kept hoping.
[10:15] Kept investing.
[10:17] Lost 70% of his net worth.
[10:19] Lost 70% of his net worth.
[10:22] Another company failed in 6 months.
[10:22] He saw it wasn't working.
[10:24] Shut it down.
[10:25] Moved on.
[10:25] Same person.
[10:28] Different decisions.
[10:28] Very different outcomes.
[10:30] When something fails fast, you move on.
[10:33] When it fails slowly, it drains you for years.
[10:35] years.
[10:36] Don't quit because it's hard.
[10:38] It's supposed to be hard.
[10:41] But don't waste years on something that's not working.
[10:43] A step back from the wrong path is a step forward.
[10:46] step forward.
[10:49] Rule 11.
[10:50] Stop doing everything yourself.
[10:52] Every hour you spend on a $15 task is an hour stolen from a $500 opportunity.
[10:55] hour stolen from a $500 opportunity.
[10:58] Before every task, ask yourself,
[11:00] could someone else do this as well or better than me?
[11:02] better than me?
[11:04] If yes, do some simple math.
[11:06] What would it cost to pay someone?
[11:08] And what could you earn with that freed up time?
[11:10] you earn with that freed up time?
[11:12] If the second number is more than the first, delegate.
[11:14] Every time.
[11:16] Say your time is worth $50 an hour.
[11:19] You hire someone for $15 an hour to do a task you hate.
[11:23] You just made $35 an hour by not doing it yourself.
[11:29] Most people think they can't afford to hire.
[11:34] But the truth is, you can't afford to keep doing everything yourself.
[11:36] And delegation isn't just hiring employees.
[11:38] It's the kid down the street mowing your lawn, a virtual assistant handling your emails, software automating your bookkeeping, paying for grocery delivery so you get 2 hours back.
[11:50] This week, find one task someone else could do.
[11:54] Delegate it.
[11:57] Buy back your time.
[11:58] Rule 12, get to a city, go to the office.
[12:02] Everyone's selling you the dream.
[12:04] Work from Bali, laptop on the beach, freedom.
[12:08] But the best jobs are in cities.
[12:10] The biggest opportunities are in cities.
[12:12] biggest opportunities are in cities.
[12:14] The people who can change your career are in cities.
[12:16] But living in a city isn't enough.
[12:19] You have to show up in person.
[12:21] 40% of executives believe remote employees are less likely to be promoted.
[12:25] You could deliver the same work as the guy in the office.
[12:29] Same quality, same hours, and watch him get promoted while you stay stuck.
[12:34] He's in the room when it matters.
[12:36] Your face in a Zoom square.
[12:39] Out of sight, out of mind, out of a job.
[12:42] Your coworkers grab lunch with the boss.
[12:44] You're not there.
[12:46] They build trust, you don't.
[12:50] A project opens up, they get it, you don't even hear about it.
[12:51] If you're early in your career, remote work isn't freedom.
[12:53] It's a trap that looks like a perk.
[12:58] Get to a city, get to the office.
[13:02] Rule 13, set goals you'll actually hit.
[13:06] You decide to save $500 a month.
[13:08] The first few weeks go well.
[13:10] Then something comes up.
[13:10] You miss the target.
[13:10] You feel
[13:13] comes up.
[13:13] You miss the target.
[13:13] You feel behind, and instead of adjusting, you stop saving altogether.
[13:18] stop saving altogether.
[13:22] Big savings goals feel inspiring, but falling short feels terrible.
[13:24] falling short feels terrible.
[13:26] That shame usually makes things worse than having no target at all.
[13:29] than having no target at all.
[13:30] So, try this instead.
[13:32] Set your savings goal at 70% of what feels right.
[13:36] feels right.
[13:36] Hit it, feel good, then increase.
[13:37] increase.
[13:39] Small wins build momentum.
[13:41] Momentum builds habits.
[13:44] Habits build wealth.
[13:47] Rule 14, keep investing simple.
[13:49] You've tried to learn about investing, stocks, bonds, ETFs, mutual funds, P/E ratios.
[13:55] ratios.
[13:55] Feels like another language.
[13:57] So, you do nothing.
[13:59] It's way simpler than you think.
[14:01] One, open an account with a legitimate broker.
[14:03] Two, put money into low-cost index funds.
[14:05] Three, keep adding every month.
[14:07] Four, don't touch it for 20 years.
[14:08] years.
[14:08] That's it.
[14:08] That's the whole thing.
[14:11] 94% of professional fund managers don't beat
[14:13] Of professional fund managers don't beat a simple index fund over 20 years.
[14:16] A simple index fund over 20 years.
[14:19] Teams of analysts, billions of dollars, doesn't matter.
[14:22] The index still wins.
[14:22] You won't beat it, either.
[14:23] You don't need to.
[14:27] Keep it simple.
[14:27] Index funds, every month, don't touch it.
[14:31] Rule 15, split your money into three buckets.
[14:32] Money comes in, money goes out.
[14:34] Whatever's left gets saved.
[14:36] That's how most people do it.
[14:38] That's why most people stay broke.
[14:41] Try this instead.
[14:42] Three buckets.
[14:44] Bucket one is your day-to-day expenses, rent, food, transportation.
[14:46] This is your largest bucket.
[14:48] Bucket two is your emergency fund, down payment, basically expenses you know are coming.
[14:54] Bucket three is your long-term investments, retirement, your escape hatch.
[14:59] First, figure out the minimum you need to survive each month.
[15:01] That's bucket one.
[15:03] Everything above it gets split between buckets two and three.
[15:06] Fund bucket one so you don't feel deprived, but always put something in buckets two and three.
[15:10] Even $50 a month.
[15:13] buckets two and three.
[15:13] Even $50 a month.
[15:15] Rule 16, Rule 16, talk about money.
[15:18] talk about money.
[15:20] Here's something strange. Musicians talk about music all day.
[15:22] Athletes talk about training.
[15:25] Coders talk about code.
[15:25] Nobody thinks it's weird.
[15:28] But money?
[15:32] Suddenly, it's rude, private, taboo.
[15:34] That silence isn't an accident.
[15:36] It benefits the people who already have money.
[15:37] Think about it.
[15:39] Your employer doesn't want you comparing salaries.
[15:41] If you knew your co-worker made more for the same job, you'd ask for a raise.
[15:45] When you don't know what others earn, you can't negotiate.
[15:48] When you don't know what others invest in, you can't learn.
[15:51] When nobody shares their mistakes, everyone makes the same ones.
[15:55] This secrecy helps them, not you.
[15:58] Talking about money makes you better at money.
[16:00] You learn what friends earn, how much they save, where they invest.
[16:05] You share mistakes, so others avoid them.
[16:08] Find people who will actually be honest.
[16:11] Compare salaries.
[16:11] Compare rent.
[16:11] Ask
[16:14] Compare salaries.
[16:14] Compare rent.
[16:14] Ask questions.
[16:14] Be open about your own questions.
[16:17] Be open about your own numbers.
[16:18] numbers.
[16:18] Yeah, it feels uncomfortable at first,
[16:21] but one awkward conversation can save you thousands.
[16:26] Rule 17,
[16:27] fix your money.
[16:29] Your body will thank you.
[16:31] You check your bank account, your chest gets tight.
[16:33] Rent is due.
[16:34] You can't sleep.
[16:37] That's not just stress, that's your body taking damage.
[16:40] Financial anxiety works like high blood pressure, always there, quietly hurting you.
[16:42] You don't feel it happening, but it's real.
[16:44] Kids from low-income households have higher blood pressure than wealthy kids.
[16:47] Same age, same diet.
[16:48] Only difference is the stress at home.
[16:50] And that damage doesn't disappear when you grow up.
[16:51] This is why getting your money right matters.
[16:53] Not for the car, not for status, for your health.
[16:55] Fix your money, your body will thank you.
[16:58] Rule 18, choose your spouse like an
[17:16] Rule 18, choose your spouse like an investment.
[17:18] investment.
[17:21] Your biggest financial decision is who you marry.
[17:24] Not stocks, not real estate, not your business.
[17:27] Nothing else will influence your financial future more than who you marry.
[17:32] marry.
[17:36] Married people are 77% wealthier than single people.
[17:38] single people.
[17:41] Net worth increases roughly 16% for every year of marriage.
[17:43] for every year of marriage.
[17:47] While divorce destroys 75% of wealth for both sides.
[17:49] both sides.
[17:51] And the greatest predictor of divorce isn't cheating.
[17:53] It's fighting about money.
[17:57] Different values, different spending habits, arguments about bills.
[18:00] That's what kills marriages and wealth.
[18:03] A good spouse isn't just a partner.
[18:08] They keep you accountable. They share your goals. They stop you before you blow money on something stupid.
[18:13] If you're married, talk about money.
[18:16] Not someday.
[18:18] Not someday. Now.
[18:20] Now.
[18:20] Talk about values,
[18:21] Talk about values, goals,
[18:23] goals, fears, debt.
[18:25] fears, debt.
[18:25] Get it out before resentment builds.
[18:29] Get it out before resentment builds.
[18:29] If you're dating seriously, pay
[18:31] If you're dating seriously, pay attention to how they handle money.
[18:34] attention to how they handle money.
[18:34] It's not romantic,
[18:36] It's not romantic, but neither is divorce.
[18:38] but neither is divorce.
[18:38] Choose wisely.
[18:41] This one decision will impact your wealth more than anything
[18:43] impact your wealth more than anything else you do.
[18:45] else you do.
[18:45] Rule 19,
[18:47] Rule 19, you're luckier than you think.
[18:49] you're luckier than you think.
[18:49] That win you're proud of?
[18:51] How much was skill and how much was luck?
[18:54] skill and how much was luck?
[18:54] Be honest.
[18:55] Be honest.
[18:55] We take credit for our wins, blame
[18:57] circumstances for our losses.
[19:00] It's human nature.
[19:02] But here's the thing,
[19:02] the biggest predictor of financial success is not work ethic or
[19:04] the biggest predictor of financial success is not work ethic or intelligence.
[19:07] intelligence.
[19:07] It's where and when you were born.
[19:09] It's where and when you were born.
[19:11] If you're watching this, you probably have internet access, some education,
[19:12] If you're watching this, you probably have internet access, some education, and live in a stable country.
[19:15] and live in a stable country.
[19:17] Someone with your exact brain born
[19:19] Someone with your exact brain born somewhere else has a completely different outcome.
[19:23] That's not capability.
[19:25] That's your luck.
[19:26] The danger comes when you forget this.
[19:28] You make some money, you think you're smart, you get bigger, take more risks, ignore advice.
[19:37] Then reality corrects you hard.
[19:40] The people who build wealth long-term aren't the smartest.
[19:43] They know luck put them here, and luck can take it away.
[19:49] Acknowledge luck.
[19:51] Stay careful.
[19:53] Rule 20.
[19:55] It's never as bad as you think.
[19:57] That thing keeping you up at night, failure, embarrassment, everything falling apart?
[20:02] Here's some perspective.
[20:04] When seniors were asked about their biggest regret, the most common answer wasn't, "I failed too much."
[20:09] It was, "I worried too much about things that didn't matter."
[20:14] You'll barely remember your present crisis in 5 years.
[20:16] Churchill says, "Success is moving from failure to failure without losing
[20:22] failure to failure without losing enthusiasm."
[20:24] enthusiasm." You will fail at things, but it won't be
[20:26] You will fail at things, but it won't be as bad as you fear.
[20:28] as bad as you fear. When you succeed,
[20:29] When you succeed, it won't feel as good as you imagine.
[20:32] it won't feel as good as you imagine. Here's a filter that helps. Ask
[20:34] Here's a filter that helps. Ask yourself,
[20:35] yourself, "Can I actually do something about
[20:37] "Can I actually do something about this?"
[20:38] this?" If yes,
[20:39] If yes, do it.
[20:40] do it. If no, it's not a problem. It's just a
[20:43] If no, it's not a problem. It's just a situation.
[20:44] situation. You can't fix it. You can only accept
[20:47] You can't fix it. You can only accept it.
[20:48] it. Two steps for things outside your
[20:49] Two steps for things outside your control. One, recognize you can't change
[20:52] control. One, recognize you can't change it. Two, focus on what you can control.
[20:55] it. Two, focus on what you can control. That's it. Stop fighting gravity.
[20:58] That's it. Stop fighting gravity. Save your energy for what you can
[20:59] Save your energy for what you can actually move.
[21:01] actually move. Rule 21.
[21:03] Rule 21. Stop thinking about your doubters.
[21:05] Stop thinking about your doubters. Your family questions your choices,
[21:08] Your family questions your choices, friends think you're crazy, maybe an ex
[21:10] friends think you're crazy, maybe an ex said you'd never make it. And now they
[21:13] said you'd never make it. And now they live in your head. You replay
[21:15] live in your head. You replay conversations, rehearse comebacks,
[21:19] conversations, rehearse comebacks, fantasize about proving them wrong. And
[21:21] fantasize about proving them wrong. And while you're doing all of that,
[21:23] while you're doing all of that, you're not building anything.
[21:25] you're not building anything. They're not losing sleep over you, but
[21:28] They're not losing sleep over you, but you're losing sleep over them.
[21:30] you're losing sleep over them. If your enemies knew how much you worry,
[21:32] If your enemies knew how much you worry, they would dance with joy.
[21:35] they would dance with joy. So, stop giving them that.
[21:37] So, stop giving them that. Whatever they said, take what's useful,
[21:39] Whatever they said, take what's useful, throw the rest away, and get back to
[21:41] throw the rest away, and get back to work.
[21:42] work. The best revenge isn't proving them
[21:44] The best revenge isn't proving them wrong.
[21:46] wrong. It's not thinking about them
[21:48] It's not thinking about them at all.
[21:50] Rule 22,
[21:52] Rule 22, live a better life. That's the best
[21:54] live a better life. That's the best revenge.
[21:55] revenge. So, you've let go of the doubters.
[21:58] So, you've let go of the doubters. Good.
[21:58] Good. But maybe there's still a voice saying,
[22:00] But maybe there's still a voice saying, "I'll show them."
[22:02] "I'll show them." Be careful. That's a different trap. If
[22:04] Be careful. That's a different trap. If you're building wealth to prove someone
[22:06] you're building wealth to prove someone wrong, they're still controlling your
[22:08] wrong, they're still controlling your decisions. You're still thinking about
[22:10] decisions. You're still thinking about them.
[22:11] them. A billionaire CEO told the author seven
[22:13] A billionaire CEO told the author seven words that ended years of grudge.
[22:17] words that ended years of grudge. The best revenge is living a better
[22:19] The best revenge is living a better life.
[22:21] life. Not proving them wrong, just building
[22:23] Not proving them wrong, just building life so good that their opinions become
[22:25] life so good that their opinions become irrelevant.
[22:26] irrelevant. The doubters either come around or they
[22:28] The doubters either come around or they fade away.
[22:29] fade away. Doesn't matter. You're not paying
[22:31] Doesn't matter. You're not paying attention anymore.
[22:33] attention anymore. Rule 23,
[22:34] Rule 23, remember you will die.
[22:37] remember you will die. There's an ancient practice called
[22:39] There's an ancient practice called memento mori, which means remember that
[22:42] memento mori, which means remember that you will die.
[22:44] you will die. Sounds dark, but it's one of the most
[22:46] Sounds dark, but it's one of the most useful tools you'll ever learn.
[22:49] useful tools you'll ever learn. A lot of things are stressing you right
[22:50] A lot of things are stressing you right now,
[22:51] now, and you're thinking you're totally
[22:53] and you're thinking you're totally stuck.
[22:54] stuck. Now, imagine you're 85 years old,
[22:56] Now, imagine you're 85 years old, looking back at this moment.
[22:59] looking back at this moment. Truth is, you won't even remember most
[23:01] Truth is, you won't even remember most of your present stress.
[23:02] of your present stress. The crisis that feels huge right now,
[23:05] The crisis that feels huge right now, the risk you're scared to take,
[23:07] the risk you're scared to take, the person who's mad at you,
[23:10] the person who's mad at you, none of them will matter.
[23:11] none of them will matter. That's the power of this practice.
[23:14] That's the power of this practice. Death puts everything in perspective. It
[23:16] Death puts everything in perspective. It shows you what actually matters and what
[23:18] shows you what actually matters and what just feels urgent.
[23:20] just feels urgent. So, before any big decision, ask
[23:23] So, before any big decision, ask yourself,
[23:24] yourself, "Would I regret not doing this when I'm
[23:26] "Would I regret not doing this when I'm on my deathbed?"
[23:27] on my deathbed?" If yes,
[23:29] If yes, do it now.
[23:30] do it now. Rule 24.
[23:32] Rule 24. Measure spending in time, not money.
[23:35] Measure spending in time, not money. The author bought a private jet, not for
[23:37] The author bought a private jet, not for luxury, but for the extra time he
[23:39] luxury, but for the extra time he calculated. If he had to take the usual
[23:42] calculated. If he had to take the usual commercial flights for the next 10
[23:43] commercial flights for the next 10 years, layovers, delays, security lines,
[23:47] years, layovers, delays, security lines, they'd take his time.
[23:49] they'd take his time. Owning a jet would save roughly 13 days
[23:52] Owning a jet would save roughly 13 days per year with his family.
[23:55] per year with his family. Over 10 years, that's four extra months
[23:58] Over 10 years, that's four extra months with his sons while they were young.
[24:00] with his sons while they were young. Owning the private jet would cost $1.2
[24:03] Owning the private jet would cost $1.2 million per year.
[24:05] million per year. That's 12 million in 10 years.
[24:08] That's 12 million in 10 years. So, the choice was simple.
[24:10] So, the choice was simple. $12 million in the bank or four extra
[24:13] $12 million in the bank or four extra months with his kids.
[24:14] months with his kids. Easy decision.
[24:16] Easy decision. You probably can't buy a jet, neither
[24:18] You probably can't buy a jet, neither can I, but the lesson is the same. Stop
[24:21] can I, but the lesson is the same. Stop measuring spending in dollars, start
[24:24] measuring spending in dollars, start measuring in time.
[24:25] measuring in time. A $50 dinner with your father that turns
[24:27] A $50 dinner with your father that turns into a real memory might be the best
[24:30] into a real memory might be the best investment you'll ever make.
[24:33] investment you'll ever make. Rule 25. The money won't make you happy,
[24:36] Rule 25. The money won't make you happy, but have it anyway.
[24:38] but have it anyway. You have a number in your head. Maybe
[24:40] You have a number in your head. Maybe it's $10,000 a month, maybe it's a
[24:42] it's $10,000 a month, maybe it's a million in the bank. You'll hit it
[24:44] million in the bank. You'll hit it someday,
[24:45] someday, and you'll still feel empty
[24:47] and you'll still feel empty because money solves money problems. It
[24:50] because money solves money problems. It doesn't solve meaning problems.
[24:54] doesn't solve meaning problems. Going from $2,000 to $4,000 a month is
[24:57] Going from $2,000 to $4,000 a month is life-changing.
[24:59] life-changing. Going from $20,000 to $40,000,
[25:03] Going from $20,000 to $40,000, you barely feel it.
[25:04] you barely feel it. The bigger the number gets, the less it
[25:07] The bigger the number gets, the less it matters.
[25:08] matters. So, build wealth, but not for the
[25:10] So, build wealth, but not for the number.
[25:11] number. Build it for what it lets you do.
[25:13] Build it for what it lets you do. The freedom, the options, the security
[25:16] The freedom, the options, the security for people you love.
[25:18] for people you love. Your spouse, your kids, your parents,
[25:20] Your spouse, your kids, your parents, your friends. That's what it's all for.
[25:23] your friends. That's what it's all for. Don't get so lost in building that you
[25:25] Don't get so lost in building that you forget why you're building.
[25:28] forget why you're building. The author says it best.
[25:30] The author says it best. Money is the ink of your pen,
[25:33] Money is the ink of your pen, not the story.
[25:34] not the story. What the story is about,
[25:37] What the story is about, that's up to you.
[25:38] that's up to you. Now, if you noticed, most of the rules
[25:40] Now, if you noticed, most of the rules we covered today weren't just about
[25:42] we covered today weren't just about numbers or strategies.
[25:44] numbers or strategies. They were about psychology.
[25:46] They were about psychology. How you think, what you fear, the tricks
[25:49] How you think, what you fear, the tricks your brain plays on you.
[25:51] your brain plays on you. At the end of the day, building wealth
[25:53] At the end of the day, building wealth is 95% behavior, and only 5% knowledge.
[25:57] is 95% behavior, and only 5% knowledge. If you want to go deeper into that,
[25:59] If you want to go deeper into that, check out my summary of The Psychology
[26:02] check out my summary of The Psychology of Money. It's on your screen right now.
[26:05] of Money. It's on your screen right now. I'll see you there. Thanks for watching.