https://www.youtube.com/watch?v=s9fSDCRPQNA

1 00:00:00.000 --\> 00:01:00.000 most people who've made millions
started with something that got them a hundred grand and i will tell you
personally the first hundred thousand dollars that i put in my bank
account was by far the most meaningful that of all the money that i've
made in my life \[Music\] what's going on everyone i've got a special uh
podcast episode for you today um what i want to break down is a
conversation i was having with a different friend about how 100 dollars
is the hardest amount of money to make um and i was actually talking to
him he's uh he's starting his physical therapy uh clinic practice right
now um and he's he's he's you know he's eating for lack of a better term
you know what i mean like he's just he's just trying to figure this out
and the thing is is that a hundred thousand dollars is the hardest
amount of money to make for a variety of reasons and that's not me i'm
not the first person to say that charlie munger said uh who's warren
buffett's uh business partner said the first hundred grand is a he even
says that uh it's a quote you can look it up um but anyways and and
there's there's a bunch of

2 00:01:00.000 --\> 00:02:00.000 reasons why and so i wanted to kind of
walk through it uh the first is the the biggest one which is that when
you're when you set the goal at a hundred thousand dollars you only
think of hundred thousand dollar opportunities right and what i mean by
that is you're not like if i were to say hey you need to make 10 million
dollars you can't 100 grand your way times 100 to get there right you
have to think of a different way of operating of doing business in order
to make 10 million dollars right because at that point you know you
can't sell your time like it's not going to work right you have to do
something else and so inherently when someone puts the constraint of i
want to make a hundred thousand dollars on themselves then they
automatically only construct confine themselves to vehicles where they
have to sell time for money right which are inherently constraining
which is why it's a right it's hard because you literally have to sell
your time in order to do it that being said most people who've made
millions started with something that got them a hundred grand and i will
tell you personally the first hundred thousand dollars that i put in my
bank account was by far the most meaningful that of all the money that
i've made in my life um i remember when i looked at

3 00:02:00.000 --\> 00:03:00.000 layla and i had a hundred thousand
dollars in my bank account after everything um i remember looking at her
and saying it's gonna be okay we've got three and a half years of money
now that if we mess up for three and a half years we'll still we'll
still be all right and i remember feeling that that sense of relief and
the reason that i think it was so impactful is that difference between
zero or let's say the difference between a thousand dollars you're
making a hundred thousand dollars is a hundred x increase for me to have
that same hundred x increase i'd have to go from a hundred thousand ten
million in my bank account to have the same proportional increase in
terms of security and i'll tell you even after i 10 million my bank
account i was like it still didn't feel as good as the first hundred
grand all right and so it doesn't matter where you're at like i'll tell
you if it's hard right now it's normal it's supposed to be hard but it
will get better because you're gonna start thinking differently all
right now back to the original topic of why 100 000 the hardest money to
make first is you think of time vehicles time for money vehicles the
second is that you have no leverage all right so what i mean by that is
that

4 00:03:00.000 --\> 00:04:00.000 inherently all businesses arbitrage
right you're buying and selling things at less and you're making the
difference right if you're in a service business i'm buying people's
labor and i'm selling it at a higher price to the marketplace because i
see the discrepancy between that and i can add value to a person by
training them in certain ways or putting them inside of a system and
then the sum of the individuals or sorry the sum of the holes greater
than parts right that's essentially what it is but when you don't have
money you have no leverage on anything and so you have to do everything
yourself and so again it takes tons of time to get small amounts of
output and so because of that you're really inefficient right because
you have to and you also have to wear all of the hats you have to learn
every aspect of the business in order to really turn the first dollar
and that takes time and it takes effort uh a lot more effort than you
think it will right and then once you finally figure out how to make the
first dollar you have to keep repeating that action over and over and
over and over again until you have you know a hundred thousand dollars
in your bank account but once you have that

5 00:04:00.000 --\> 00:05:00.000 you can start paying people to do
things you can start paying for you know advertising and you're not
worried about paying your rent or and what happens is you now start
having the big l word right which is leverage you can you can you can
move the world a lot faster because you can have 10 people doing
outbound for you you can pay a team to make advertising for you you can
have a video set up or whatever that's going to get you a higher roi or
make your stuff look better and you get more you know you get more
engagement or whatever right but the thing is is that that first hundred
grand is so hard because the vehicles that exist for it require all your
effort if you're doing sales right you're working all the time if you're
doing a job you're working all the time if you're you know if you wanted
to drive uber to make 100 grand you probably work 12 hours a day and it
would require other time but the thing is is that once you do that
though you can you can then start piecemealing out pieces of your day
and you do that in reverse order of the value that you can buy that same
skill in the marketplace so let me let me dive into that for a second so
let's say that in your business you

6 00:05:00.000 --\> 00:06:00.000 might be doing 15 different things but
you might find out that the administrative work of scheduling and
answering the phone might be the least valuable it may be it may not be
whatever but let's just say it is and let's say that the marketplace you
can buy that skill for ten dollars an hour and so what that means is you
can get let's say four hours of your day back for ten dollars an hour
and so now you have four more hours and if you can make more money in
those four hours and this is a key point i see this one as a mistake too
is uh people will outsource certain work that they're doing but they
will not replace the time with higher value skill so then they basically
just pay people and then stop working you make the same amount of money
which can be cool but if you want to grow then you're going to need to
continue to work and just do higher and higher and higher value higher
leveraged time in the time that you buy back right but fundamentally
when you think about your business as what would it take for me to make
a million dollars would it take for me to make 10 million dollars you
think of different vehicles in order to get there and if you don't know
of the vehicles i would highly highly

7 00:06:00.000 --\> 00:07:00.000 encourage you to look at the vehicles
that already exist so like one of the things that's here's an
interesting nugget for you there's no reason for anyone in the united
states to make less than 25 an hour why because in one day you can go
through a certification and become a phlebotomist and make 25 an hour so
who wouldn't take a one-day education to triple their income from
minimum wage who wouldn't do that the reason people don't do it is
because they don't know people are ignorant right and so if you're
watching this and you didn't know that that even existed there are so
many other opportunities that are like that that you can immediately get
more leverage on the time just as you're starting so if you're if you're
working a job and you're not making that well then go find go find small
opportunities go find little mini certifications that you can get that
qualify you uh for now that's only get a certification if it's required
if it's just like oh this is a certain don't worry about it but like if
if you can find these little opportunities you know like i'll tell you
for me my plan b of like if my business was going to fail i knew that
what i was going to do was i was going to drive uber and i was

8 00:07:00.000 --\> 00:08:00.000 going to strip at night that was going
to be my 100 my my gig because i knew that if i drove uber 12 hours a
day and i stripped for four hours uh every night i would be able to make
about 200 grand and i knew that even though i started at zero i could do
that again and try and try and get another do-over right and the thing
is is that as your skill set increases right the base level of your
building as i like to consider like this is your building of skills the
base level your basement continues to rise right and so the level that
you can fall down to continues to go be higher and higher right and so
once i learned how to sell i knew that i would never really make less
than 250 000 a year because i knew i could always go to a car dealership
and sell cars no matter what i could go sell cars make 200 300 400 000 a
year i knew that because i had that skill and that means that from this
point going forward with my life i'll never make less than that right
but then i learned how to market and then as soon as i learned how to
market i knew that that was going to be my because now i could take my
sales skill and pair it with marketing and then i could generate demand
at will right and then that means that

9 00:08:00.000 --\> 00:09:00.000 my new level might be three million
dollars a year that i'll never make less than because i have the skills
that even if i have to start over i can end there and the thing is is
that if you think about your your journey as an entrepreneur in terms of
as a skill set stacking all you're doing is acquiring skills and putting
in your back pocket put it in your tool kit right then you inherently
become more valuable and you stop seeing your failures as failures but
rather lessons on the way to where you're trying to go because you
inherently become more valuable because your work works on you more than
you work on it all right i'll say that again your work works on you more
than you work on it and so even if you didn't make a hundred grand the
first year that's okay because you developed the foundational skill sets
that maybe got you above 50 000 a year right but as long as you were
continuing to acquire skills that baseline will will go up and the speed
with which you move up will be how much volume you do so volume of work
for a specific skill with deliberate effort will improve your skill set
now you can do it faster or slower depending on how

10 00:09:00.000 --\> 00:10:00.000 quickly you learn the skill but you
still have to learn it and there's usually a certain amount of volume
that has to happen which means that there's some amount of time but then
how do some people acquire skills faster than others some people are
more deliberate with their practice some people get mentors and experts
that feed into them every valuable skill that i've acquired in my life
i've paid someone to acquire so i could get it faster all right and so
if you're like well i don't have money then do the high value do the do
the leverage do the shitty work now do the first 100 000 that's a do
that work now you have to trade some of your your life for money and
that's okay which is why i have a saying which is you can uh you can't
be busy and broke right you can't be both if you're busy you should be
making money right and if you're broke you're not busy which means
you've got time so you can always trade back and forth time for money
right if you have more money then uh and but you're busy all the time
then you can trade some of that money back to buy some time back right
but you can't be busy and broke all right so think about that and if you
feel like you are busy and broke i guarantee you're wasting all your
time so anyways uh to ring this full circle

11 00:10:00.000 --\> 00:11:00.000 a hundred thousand dollars is by far
one of the hardest amounts of money to make because we think about it
only in time vehicles and for many of us it's the first thing you have
to do so just bite the bullet go do it and then after that you can start
leveling up your skill set you can pay for skills you can pay for um for
things to happen faster for you can pay for other people to do some of
the lower value work that you're doing because they're earlier on in
their journey so you can buy their time that's less valuable than yours
and you continue to work up and build the foundation of that building
that eventually becomes a skyscraper of your skills and then you'll have
the perspective to identify the 10 million the 100 million the billion
dollar opportunities and go all in on them because at this point you'll
have the skill set to make it happen so anyways hope that was valuable
for you hope you're having an amazing day uh and i'll see you in the
next video \[Music\] bye

12 00:11:00.000 --\> 00:12:00.000 \[Music\] \[Applause\] you
