https://www.youtube.com/watch?v=5RiR6cBLkFg

1 00:00:00.000 --\> 00:01:00.000 this video is for every 17 year old 16
year old 18 year old 19 year old who's considering going to college or
quitting college right now should i spend the next four years going to
college hopefully i can equip the parents and the kids to make a call
with as little societal pressure as possible when i lived in austin my
next-door neighbor was 18 years old he was at this important decision in
his life where he was deciding whether he was going to go to college and
i knew his parents and it's kind of interesting because i sit halfway
between his parents and him so i kind of have both sides he decided to
enroll at pepperdine after a semester he didn't really like it and i
think a lot of it was because it was just kind of expected that he'd go
to college there i had developed a rapport with him and you know he used
to work out with me at my home gym after school and whatnot and so i was
like hey man let's go for a walk and i think we walked for about an hour
and we just walked around the neighborhood and i'm pretty sure that that
conversation significantly shifted the trajectory of his life there we
go all right the reason most people to go to college is because that is
what's expected they don't think about the decision they just do it
because it feels like the next natural

2 00:01:00.000 --\> 00:02:00.000 path it's the same thing for having
kids and getting married and buying a house but let's not get into that
he went from going to pepperdine to dropping out his friends his family
his friend's parents started looking at him different he was like the
troubled child he was like i don't know about him two years later he now
has 250 000 saved up as a 20 year old makes 200 000 a year right now as
a sales guy what i want to do is break down the split in the road of two
different lives that he could have lived or that you could live or that
somebody that you know who's facing the decision could go through and
i'll tell you how the conversation i had with him went what's up man so
i said listen you're at a crossroads right now we have crosswords every
day in our lives i was like but some crossroads are bigger than others
and when you're trying to make a decision you have to think how
reversible is this decision and how much long-term impact is death if
i'm choosing between chinese and mexican for lunch it's a split in the
road and it's really not going to affect much for me down the road
choosing to go and commit four years of my life between 50 and 200 000
of money and the lost income that i would have made during that period
of time those are very big irreversible

3 00:02:00.000 --\> 00:03:00.000 decisions and they need to be treated
with the same amount of respect and a lot of people don't because they
make that decision because their parents are selling them to which seems
like the overused one but realistically because they don't want to be
the kid who did it wrong who didn't do what they were supposed to do and
didn't do the next natural step that's a terrible reason to go to
college i would like you to approach it with a decision-making framework
that makes sense so it starts with and this is me telling him this i was
like what problem are you solving he's like well i want to make money so
the question is four years from now if you have a degree and you lost
the money and you lost the earning potential you had during those four
years is that you more able to generate income than an alternative you
because what we have to analyze is not the cost of college but the
opportunity cost of going to college the opportunity cost is the loss of
potential gain from other alternatives when one alternative is chosen so
when we choose to go to college there's an opportunity cost that exists
and it is the single greatest cost that people do not take into
consideration it's the cost of not doing of what you could have done in
the meantime one is it's going to cost you money because you actually
got to spend money to do it the second way it costs you money is that
you're not going to earn what you probably could earn full time working
if that's

4 00:03:00.000 --\> 00:04:00.000 what you wanted to do you got two sides
there if you spent four years versus starting a business and then four
years later the opportunity cost is the business you could have started
and what you would have four years later so i'm walking with him and
we're this is like a one hour really in depth like this is probably
deeper than he and i have been because i'm still this neighbor from
across the street that like makes money on the internet right but his
parents like trusted me enough to be like you know i know that you have
a lot of influence over our son and like we just want you to know that
like we know you do and so like please be careful and i was like i'm
aware he's in good hands don't be afraid for what i'm going to tell your
son i was like listen if you want to make money then you need income
generating skills do you think your philosophy degree your sociology
degree your psychology degree your economics degree even which is still
a little more useful is gonna give you actual skills to make money he
was like i don't know and so i'm here to tell you what actually makes
money there's this lie that has been sold that you need to learn general
education i can tell you ancient chinese literature has never impacted
my ability to make money aztec culture don't know anything about it but
it's classes and they somehow fool kids into

5 00:04:00.000 --\> 00:05:00.000 thinking that if they take this class
they're now somehow going to be more equipped to add value to the
marketplace if alex were redoing the education system the majors would
be in accordance to the departments of a business you'd have marketing
and it would have the actual ways to market which is creating the
materials of marketing and how to distribute it you'd have sales how to
get strangers to give you money delivery portion which would be either
physical products delivery or services delivery which would be customer
experience customer success or it'd be technical electrician plumber
lawnmower whatever it is so then you have the actual technical component
of the services delivered and then you have the supporting services
which are like finance hr legal those would be the things that people
should major in because those are the things that you're gonna get hired
to do google stopped requiring college degree big tech corporations have
stopped it because they realized it too that it's not value additive if
i'm a doctor or a lawyer you need a degree sure but for the 99 of people
who don't fall into six careers that you have to have one people were
like alex you went to vanderbilt i graduated a year early so i tried to
get out as fast as i possibly could one of the regrets that i have is
that i could have started sooner and the reason why i didn't drop out of
college is because i was too too scared to disappoint my

6 00:05:00.000 --\> 00:06:00.000 father if you're gonna do it eventually
you might as well do it now when i see the guys who are starting at 18
i'm like man i wish i had started then rather than 23. i would have five
more years zooming back out i'm walking in the street we're talking
together and i told him this line i said the world doesn't need another
3-1 business degree from pepperdine another b student who graduates
because he didn't really give a right he would just do good enough that
he would get through and this is what he brought up he's like but what
about like the social experience of college i was like so do you think
that if you don't go to college you're not going to be able to party
with people who are your age i was like real talk and he was like well
like kind of if the problem to be solved is to socialize you there are
way more efficient ways to socialize you than spending 200 000 and not
making income you can work all day and then make my objective for this
period of time to have fun then work all day and then literally go out
every single night and you'll end up debt-free with savings and have a
hell of a crazy four stories and that's fine if that's what you want to
do i was like is that what you want to do he's like no and i think at
some point in the

7 00:06:00.000 --\> 00:07:00.000 conversation he's like i kind of want
to do what you do and i was like well then you got to learn the skills
that i had to start five years older than you to start learning right
and the first thing was you had to learn how to sell let's just go down
that path if you're watching this you're like well i don't like sales i
told you all the other departments that you could focus on if you're
like you know what i like being behind a camera then cool what do you
think behind a camera means in a business behind a camera means you're
making content you're making commercials pick one that's what video is
used for right if you're like i like writing words what do you think
writing words are used for in business they're used to sell or deliver
that's it or legal to protect people from selling and delivering i like
dealing with people it's like well it depends are you a little bit more
aggressive you might like sales if you're a little bit more passive-ish
and i'm not saying it's a bad thing you might like more of like the hr
or you might like recruiting you might like selling people rather than
selling products different ways to thinking about it and so you can take
your skills and then bucket them into which of these departments make
more sense and then that's what i'm going to focus on zooming back out
so i said now we need to look at your 3-1 degree 200 000 of debt four
years later versus four years from now you're gonna have saved money
this whole period of time so he's living with four guys because i was
like

8 00:07:00.000 --\> 00:08:00.000 dude you're living cheap that's how
this works so he saves a lot of money which is why he is 250 000 saved
up at 20. that's not from alex doing anything like he worked for it he
worked for it he saved every dollar that he made and what do you think
he's gonna be able to do in four years some people start his own thing
with a ton of capital and skills as we're walking through these four
years what do we think happens now he's like i really like sales now he
happened to have liked sales the blessing that he got was he had a
mentor which obviously was me i could see his personality i was like
dude i think you'd do well here and he did like he did well but if he
was that camera guy and he really liked more of that stuff or if he was
really techy i would have been like dude go start coding and so all of
like you have this bass skill and it's like where do i want to apply it
if you're like i don't know you're never going to know because how would
you know you know by starting and then you'll gain context to make the
decision later all you know is the experiences you have and so all you
have to do is just always look around every so often be like have i
learned everything that i'm going to learn from this branch and if
you've learned everything you're going to learn then at that point you
can make the pivot right but if you're like dude there's still a lot for
me to learn do i want to learn that is it the direction i want to keep
going i remember when i did my first years of consulting i looked down
the

9 00:08:00.000 --\> 00:09:00.000 road 25 years and i was like i don't
want that life this is a hack that i will give you for very big
decisions is that you want to keep thinking on it keep chewing on it
keep digesting it until you can get into a single statement which is for
him four years from now given the cost which of these two paths will
give me the most potential for my future and he was like well i think
the other one and i was like then what are you gonna do so he decided to
drop out and he ended up going to sales and he was terrified in the
beginning he sucked at sales because he had never done it before of
course he would suck and of course you will suck too because you haven't
done it but how do you think you get good you start by sucking and then
you suck less that's how it works until eventually you look back after
hundreds and hundreds and thousands of repetitions and you're like oh
i'm actually pretty good at this and it's reasonable that you'd be good
because you've done it a thousand times he likes sales it's probably
gonna be the direction that he takes directly in his life he's like what
do i need to learn now so i was like okay how do you move up it's like
uh i could start a business i was like yeah i was like what are you what
skills are gonna need to start a business i gotta know how to market i
was like well you already learned how to cold calls like that's your
first acquisition channels we got that handle which is why i put them
there it's like okay so i have that so i can get customers all right and
i know how to sell so i got

10 00:09:00.000 --\> 00:10:00.000 that i was like what are you going to
deliver it's like well i really do like teaching sales so i was like
well who the have you taught sales to he's like i guess i have it i was
like hmm sounds like a skill you need to have he's got to learn the
skill of how to transfer a skill from himself to somebody else what are
the other skills he's going to have to learn well he's going to have to
learn how to do finances he's going to have to get contract set up so
you can have services agreements things like that but again these are
all googleable things that you can do you can figure those things out in
a couple days it's not a big deal for the parents who are watching and
the kids who are watching this at home are trying to make the decision
is do i think that four years from now with 50 to 200 000 in absolute
cost and probably higher than that an opportunity cost of the cost of
the path not taken which of these two paths will lead me closer to where
i want to go and if the goal is to to make income then you have to look
at that 200 000 and all the things you could buy with that 200 000 in
four years of time and think is there another way that i could reverse
engineer four years to get me to where i want to go or if you just
really like the technical expertise that you have you go super deep on
the technical expertise and then you bolt on one additional skill this
is the one skill i will give you that you need to bolt on to instantly
give yourself the lift in whatever career you

11 00:10:00.000 --\> 00:11:00.000 have you gotta learn how to deal with
people you gotta learn how to manage you gotta learn how to lead you're
like that sounds like the soft tough and it is but it's also how you're
gonna get promoted it's how you get respect it's how you gain influence
and you also realize that the technical thing that you're really good at
is probably not the thing you're gonna be doing in the business you just
gotta know it well enough to teach it to somebody else his parents came
to me after like i talked to him and they're like alex can you please
just tell me again on why he should be you're like telling him to to
quit college i was like i'm not telling him to quit college i'm telling
him to make the best decision for where he wants to be in four years i'm
not telling him not to get educated i'm telling him to get super
educated in the thing that he wants to do the best people in the world
anything learn for themselves they are self-taught if you can adopt that
mentality then the world is your oyster because you realize that you can
learn whatever you want whenever you want you don't need a certification
or permission to do that which of these paths four years from now given
the opportunity cost is going to get me furthest towards my goal here we
go all right what's up man what's up what's up so i was responding to
the comments that you had that they didn't think that you were real so
this is uh this is to my my youtube

12 00:11:00.000 --\> 00:12:00.000 audience to know that jacob is indeed
a real person can you confirm that you lived as my neighbor next to my
house and that we did work out every day after school yep and then how
are you now i am 20. i still can't drink yet tough life um so you're in
sales now right what are you making right now i'll probably hit 2.50
nice to be king and then how much money you have saved up 210. okay so
over i it was i thought there's two i thought it was 250. i got the 250
mixed up so it's 210. what would you say has been the like the biggest
mental mind shift change etc from uh from our talks in our chats that's
a good question \[Laughter\] well you decided not to go to college right
is that the walk that did it

13 00:12:00.000 --\> 00:13:00.000 i did i did go really aggressive on
that walk to be fair so you had now at that point been in school for a
semester what was the reason you decided to take that jump i think that
the the line that really hit when you said and i'm paraphrasing it it's
mostly acceptable to fail at entrepreneurship because you're still in
school and you're using it as a crutch i think that that was like oh
that's it yeah so you were because you were dabbling on the side and you
weren't succeeding at the entrepreneur thing which is what you really
wanted to do and you were using college as a social safety net to give
yourself an excuse for why you weren't winning exactly and so then you
uh decided to go all in on it then we went all in we did it all right
say hi to me you're in the closet say hi to mozy nation so that is to
confirm that jacob is indeed a real person uh with a real pulse and a
real story and if it worked for him it could work for you thanks i
appreciate you go back to your sales calls

14 00:13:00.000 --\> 00:14:00.000 \[Laughter\] jacob was lucky as hell
that he just happened to have been my neighbor um that's right jake i
could just tell that he was incredibly hungry i knew that he had this
really deep desire to prove himself when i see something like that i'm
like cool like and the way i tested that i was like shop after school
every day we'll work out and i wanted to see if he would show up and
like clockwork no matter what every day he would text me it wasn't like
me having to text him or remind him i knew that he had that desire and
he would take as much as i was willing to give if this video caused you
to question a couple things or maybe even brought up more questions than
it did answers because it opened up your mind to some things what i'd
recommend doing is watching this video my video about how to analyze
opportunities and so if you're looking at okay maybe i don't do college
but what path do i go on that will give you the framework to make the
decision on how you analyze opportunity in your life and a business that
you might potentially start etc hope you enjoy they're like when are you
going to start like hormoza university and like train these guys on the
scales and maybe someday
