Get Rich While You Are Young | Ep 1001

I am making this for people who want to get rich and if that is not you that is totally fine There's no judgment. You can skip this But this is for people who are trying to call it money max for the short period So if you if you want to max you have to min and you'll be willing to do that for a period of time And so I'm going to give you an argument that I think is very compelling for why you do it sooner And so if you want to get rich then you should try and get rich as young as possible and I will break down Very logical reasons for why so number one first and foremost one of the most underrated reasons is the math behind Getting wealthy, all right, so money compounds at three to four times the rate in the beginning as it does later meaning Your increase in compounding on the excess cash you have in the earlier parts of your Career will outpace the increase in earning power and so for example If you have one dollar extra when you're 25 it might be $90 by the time you're 70 right whereas if that same dollar at 35 Would only be a third as much and that same dollar at 45 would be a ninth this much right and so the idea is the dollars that you make even though they may be smaller by proportion When you get when you allow compounding to compound Actually results in more money later now my argument there is not that you must take 100% of your dollars and put it into the S&B 500 That's never been my argument But that the dollars you do choose to put into investments of any kind at an earlier part in your in your career do get disproportionate returns So that's thing one the second thing is that your skills will also compound Disproportionally that you acquired a younger age right like there's a certain amount of repetitions that are required in order for you to become good Bill Gates was able to get those repetitions early because you started coding early and then as a result He's able to build software first and then basically was able to keep this kind of sustained advantage like I talked to a guy yesterday And I yesterday two days ago Mehdi who had $700,000 by the time he was 19 rather that saved up. That was very interesting Now imagine that that was a 65 year old guy. We wouldn't be as impressed right and so time has very real impact on The scope or scale of your accomplishments as it relates to your reputation Meaning when I was younger and a millionaire early it meant a lot more and so you actually get more reputational Gravitas right and so You can leverage a smaller win when you are younger for your reputation because you are younger right And I'll give you a secret that I you only found out later is you basically have until you're 30 to be considered young the moment I turned 30 I was just a white dude Before that I was a young white dude Then I was just white dude and then no one cared after that right so in other words youth as a multiplier on every win That you have whether that be press network mentors capital access. I just made an investment this last week I wrote a 500,000 our check to a kid who was 18 years old and he was doing he had just done $30 million a year in any Commerce business and wanted to develop a tool to to help you commerce store So I was like I knew he had the avatar. I knew he'd able to do it But the fact that he was 18 and it accomplished that maybe think okay, this guy is really sharp now He got into my stuff at age 15 since I'm three years to get there, right? But in other words that multiplier decays around 30, right? But so you have this period of time we're going all in yields higher returns even for the same outcome now number three You leverage early success into bigger later success. So he's 30 million dollars business Obviously everything's different in terms of what your scale of success is right, but you can you can you can you can ladder on top of it they're stepping stones So for example me when I went through the beginning it was like I was able to get in shape really early and I was able to leverage that into Personal training and online training clients, which I was able to leverage into a gym and then from gym I got into multiple gyms and then from multiple gyms I was able to start gym lunch and so the thing is is that every part of my career has been going back and basically taking a stepping stone on what I learned From the enterprise that I did before and then obviously the sale of gym lunch got basically gave us our cash for acquisitions.com Start family office and so everything built on itself and so if you if you're gonna have these steps It's like the steps are set. It's just how soon do you want to get to this step? It's just how late you want to start right so Next one is that I'll just rapid fire some reasons why I think it's better to get rich while you're wrong young Which is that like you also have more energy, right? So think about it like this like you you like you have to play the cards You're dealt Getting those repetitions in takes energy and I only know this now that I'm almost you know 40 which is wild to say Then I have less energy than I see some 18 year olds, right? And so like that is a clear advantage that they have and so if you have that then like you want to use it Right in addition to that you have fewer requirements meaning there are fewer things that you must do You probably don't have kids it. You probably aren't you don't wifeed up yet or our husband did up yet You probably don't have the same level of geographic dependence and so you are more flexible You can go to places where learning can occur faster you can have fewer strengths attached You can live for less which means you can be more aggressive with the excess cash that you make to reinvest in skills or Informal investments because you understand the value of multiplying and compounding right and again this geographical flexibility I think is wildly underrated one of the things that you get the advantage of when you're younger is that like if you want to be in You know politics go to GC if you want to be in finance go to New York if you want to be in influencer and media go to you know go to LA Right, those are great places to learn now once you become Joe Rogan you can move to Austin and do whatever the hell you want Right, but the thing is is that when you want to get those reps you want to go the reps or are right? You want to go the where the fish are if you're trying to fish and what you're fishing for right now is skills and network Right, you're trying to get places and you want to do it before you have strings tying you down and roots that you have set and That is again, it's a competitive advantage. It's not to say that when you're older you can't do it. It's just harder right and so if you believe that It's hard for you now to Forgo your existing path which may have been given to you by your siblings or society or whatever I promise you will only get harder and if you can't do it now The likely that you're able to do it later goes down right and for me I want to stack bets where the probabilities are highest for my success and whenever you enter a new system By the way, this is game theory the most adaptable player wins So it's not it's like survival the fittest right and fittest is most adaptable and when you are younger You have the most adaptability you have the most neural plasticity isn't you can learn faster you have the most energy So you can do repetitions you have the least geographical Constraints you can move to where the where the action is when you do earn you make more dollars on each dollar you make All the skills you acquire compound at the time because you only get better at it the accomplishments that you get from being young Mean more because you're young then they do when they're old and so the final point that I'll say is this is that you want to model success Not the exceptions of course. We want to tell the story of of of Colonel Sanders who started you know Colonel Sanders when he's 63 and there's a bunch of you know other kind of call it exception stories of people who are older and Then started companies and then obviously we're really successful But like wouldn't it be better to be the rule than the exception like the richest people often got rich when they were young because they Decided to right and I will say this because I love this quote from James clear But the thing that separates winners and losers are not their goals people's goals are the same the difference between the people who win and lose It's the action to take as a result and the risk that they're willing to tolerate and the pain that they're willing to endure for extended periods of time with an Uncertain payoff and so if you think that you need certainty in order to move forward I promise you that this world will never give it to you and so it's really that there will always be uncertain and at some point You grow the cajonas the gonads by the way that's bisexual or unisex Everybody's got gonads. You will grow the gonads or they will drop or whatever it is I told you I was gonna do some HR stuff. You'll grow the grow the nasi need To take the bets and so I think what really happens is that at some point you realize that you're not gonna die if you fail You will just learn and you will get better Which is the point of the process and you will never finish and you will never actually win because by the time you win You will have already planted a much bigger goal that you want because the the goal that you had Came in shooting distance and easiest analogy I can say for this is this when I wanted to Bench 315 for example I was a dream of mine when I was in high school right because I remember that just one big plate was that was wow The strong kids could do a full play right and then two plates was like super strong three plates was crazy By the time I benched 315 I knew I was gonna hit 315 because I had done 275 for 5 and I did the 295 for you know triple or set of 5 and so 315 seemed obvious Right, and so the thing is is that by the time you accomplish goals the goals themselves seem less meaningful because you already did the work To make that goal reasonable, which is why you achieved it Which is why you have to do so much work that is unreasonable that you do not become successful and the best way to do that is Start when you're younger for all the reasons I just gave all right That's why you should succeed while you're on that's why you should ignore the people who are telling you Who don't have what you want telling you how to get something that they've never gotten All right feeling spicy this morning [BLANK_AUDIO]