https://www.youtube.com/watch?v=vKnAWYqMJ10

1 00:00:00.000 --\> 00:01:00.000 what's going on everyone today i want
to talk about what it's like to live as the ultra wealthy and so hi my
name is alex uh owner of allen prestige labs jim launch a number of
other portfolio companies who did 120 plus million in the last uh four
years and growing and i've learned a lot of lessons and i want to share
some of those with you and so one of the things is kind of understanding
how the ultra wealthy live and i want to talk about some stuff that no
one no one i feel like no one talks about and it's something my dad used
to tell me when i was growing up he said never be impressed by money and
he used to say that so many times when i was growing up and i like i
didn't really get it as much but he was so big on it i was like hey look
at that guy he's so rich and he was just like don't be impressed by
money and it's it's really kind of stuck with me and so what i want to
do is kind of show you some transparent things so that you can hopefully
not be impressed by money so it's really easy to look ultra wealthy all
right so i'm going to show you some of the things that you see on
instagram um and some of the things that you know you see around and i'm
going to break it down for you

2 00:01:00.000 --\> 00:02:00.000 money-wise so that hopefully it stops
impressing you all right so we're going to talk about private jets we're
going to talk about you know what i'll do and at the end i'll tell you
which one i think is worth it all right so yeah private jets let's say
you've got an exotic car okay let's say uh what else you probably want a
penthouse right want a penthouse what what else do we have on our on our
dreams list all right we got penthouse let's say you want really nice
clothes right you want like really expensive you know expensive clothes
all right and then let's say fancy restaurants all right sweet let's
let's walk through it so this comes down to like if you're like man i
really you know my dream lifestyle and i think this is a useful exercise
for anyone to go through if you haven't already to find this stuff but
let's say that you travel six times a year so every two months all right
you go somewhere there and back average travel at least in the us is
gonna be two hours so if you two hour flight six times a

3 00:02:00.000 --\> 00:03:00.000 year all right it's there and back with
just four hours four hours of flying six times a year total just 24
hours all right that's 24 hours the reason i'm defining this by hours is
because private jets uh get price per hour and if you're curious how
much it costs if you go through a service you can usually get it for
about four thousand dollars an hour okay so people don't know this
that's how much it costs all right so that's about a hundred thousand
dollars a year wait flying private 100 000 a year i thought it was you
had to be a super duper millionaire no not really um it's 100 grand a
year now do i think that's really expensive for flights when the
alternative to that is for for for six flights could be uh you know
maybe you know if you did first class you'd be maybe spending six grand
you know at worst if you did it last minute you'd spend like 10 grand so
10 times the price for an alternative well that's the alternative price
all right consider it the next one exotic cars all right so i'll give
you a range here but you can pretty much get a really nice car for a
thousand dollars a

4 00:03:00.000 --\> 00:04:00.000 month like a very very very nice car if
you want like a rolls-royce you know one of the most expensive cars
anywhere and you're releasing it you would spend you know 4 500 months
you know 4 500 bucks a month all right so that's 4 000 a month which is
about 50 000 a year right all right next one penthouse so if you this
kind of depends on like unless you're in a major city but if you're not
in a major city which is what most of the the ig influencers will try
and influence you with um you can get a really nice place for five
thousand dollars a month in just about every market that's not new york
you know la you know it's like maybe miami and sometimes even the nice
place my name is like 10 grand a month right but you know what let's
let's level up let's let's live a little bit so we'll say 10 000 a month
all right really really really nice place all right so that's 120k a
year all right and then finally expensive clothes

5 00:04:00.000 --\> 00:05:00.000 believe it or not are some of the
cheapest things that are out there because i mean you buy your gucci
belt which is 500 bucks you buy your your gucci shoes which are another
600 bucks and then you know you want to buy a handful 100 t-shirts okay
so i mean you're spending what like 3 000 a year you know on clothes
which is not nearly as much as you'd think right and then fancy
restaurants let's say you go out to date night once a week and you drop
400 on a really nice dinner really really nice dinner i'm trying we're
living it up here right so it's 600 bucks a month times 12. i don't want
to do the math there let's say it's 20k all right so this lifestyle and
this is the this is the i mean we're talking the ultra ultra ultra
wealthy lifestyle this isn't just like um i'm a millionaire this is like
i'm a super duper wealthy person right i mean look at all this stuff
we've got we've got lamborghinis pen houses we're only wearing uh you
know designer clothes we've we travel with private jets we go to fancy
restaurants we do all of that

6 00:05:00.000 --\> 00:06:00.000 stuff how much does it actually cost
right it costs 100 grand 150 270 about 300 grand a year all right 300
grand a year so that's that's it that's the dream number and i have so
many people were like i need to make a zillion dollars right well after
taxes you need to make 300 grand so you're looking at 500 ish 1000 a
year 550 is what you need to make and that is a top that's top one
percent but this is so stupid um as someone who literally has done all
of these things uh let me let me give you some insight into some of the
stuff that i've discovered one flying private is actually really nice
but it's it's wildly expensive and i still feel guilty for it exotic car
definitely not worth it i

7 00:06:00.000 --\> 00:07:00.000 have two and like i they're so not
worth it at all like seriously not worth it at all the incremental
enjoyment that i get compared to driving like a an old prius or a pickup
truck is is inconsequential if anything you get used to it within like a
week or two and honestly the only reason i got this is because i was on
a podcast with brad lee if you guys know him and he was like dude you're
so cheap he's like just go you know like just get the car because my
wife and i split a car until not that long ago and he was like dude you
make so much money just go get the darn car so i was like all right i
won't be a cheap ass and so i got the car and now i totally regret it
but you know it is what it is so hopefully you can learn from that
mistake that being said what i'm gonna do is also i'll walk through
percentage of income like for perspective if i can do this all of this
stuff off of one week's income it what do you do the next week right and
so that's why increasing your income is so important because all of this
stuff's actually really easy to achieve um

8 00:07:00.000 --\> 00:08:00.000 and so that's why i don't think you
should be like taking huge advice from people because get you know
getting a business to do you know 80 000 a month and you know taking
home 40 pretty much just affords you this lifestyle that's it like now
mind you knock out private jet flying and you know make a reasonable
penthouse instead of a ten thousand dollar a month penthouse which is is
a really nice place right then just like that we took out half the cost
of this lifestyle so now we're down to 150 000 right it's like okay well
then i could still look like a super and i still have my exotic car
still have expensive clothes still eat at fancy restaurants and that's
on 150 grand a year right and so my my biggest takeaways here are or
that i that i hope people take away is like the people who have the most
money honestly all of this stuff is a very very small percentage of
their income and so don't let this be the reason that you listen to
someone because there are people who live like this and that's 100 of
their income and those are people you should not listen to for advice on
money

9 00:08:00.000 --\> 00:09:00.000 right like in my opinion the only
reason you should ever get to this part is is when you're you know it's
you're living this is this is less than 10 of what you make that's my
that's my opinion less than ten percent of what you make you save ninety
percent all right and so overall the that that's my that's my big
message is that i have i have done all of these things i am not
currently wearing fancy clothes i'm wearing jean shorts and a t-shirt
that my aunt gave me for christmas fancy restaurants this is something
that i do with layla and i actually feel like i get a good return on our
date night but not on the fact that it's a fancy restaurant i enjoy
applebee's cheesy factory bj's and chili's and chipotle honestly just as
much as i enjoy the fancy restaurant i think the value of the fancy
restaurant is that you dress up more so than the actual food and
experience and i've had the 500 steaks and all that stuff and honestly
like a really good double meat chipotle bowl hard to beat fajitas and
chips at

10 00:09:00.000 --\> 00:10:00.000 chili's hard to beat cheesecake
factory cheesecake hard to beat pizookia bjs no one has anything on
their desserts right and so what's interesting is that having now done
these exotic things especially like cars and experiences you'd be
surprised that a lot of times i think the best quality having now tasted
all of these things the best quality comes from the stuff that tends to
be the biggest mass market because they do the most product testing and
so recently i rented a i think i rented a chevy suburban we were
traveling somewhere and the interface was so much easier to deal with
than my bentley's interface it was so simple i plugged my phone in it
worked automatically it was just like it was such a dream compared to
this thing that's a 350 000 car because they only make you know a
handful of them so they don't have nearly the product testing and they
put all these gizmos in it that are impossible to figure out how to use
and so don't don't be don't be persuaded by this stuff all right try
this is just my two cents you can take whatever you want from it but
this has

11 00:10:00.000 --\> 00:11:00.000 just been my experience with all of
these things restaurants i like that the the cheaper ones better
expensive clothes i clothes i get nothing from so personally i think i
have some shirts that are awesome but the mass majority of them are less
than 30 the penthouse thing i don't think you should spend a lot of
money on where you live personally i think if you look at your primary
residence as an investment if you can and live in something that would
be an investment income uh type property then i think it makes sense
like the places that really make sense is like if you can live in a
duplex and run out the other spot you live for free and you're gonna pre
you're appreciating the assets you have that stuff makes a lot of sense
to me and you have to pick figure out what your trade-offs are but if
this is the absolute ultra wealthy you know uh a lifestyle do you know
what ultra ultra wealthy is because i'll tell you what it is right now
it's 30 million or more 30 million to a billion in investable assets
well if you have 30 million dollars in investable assets that's the
bottom range of alternate high net worth then

12 00:11:00.000 --\> 00:12:00.000 if you're gaining even 10 a year
you're making 3 million a year right on your money just your money
making money and so just your passive income is 10 times greater than
what it costs to live this way and so in that instance it kind of makes
sense right or it's like if you want to do it do it but i'll tell you
this of the people that i know were ultra wealthy not kind of wealthy
not high net worth which is 5 to 30 or just um or millionaire right
which is one to five the people who have that stuff uh who are the
highest that i know almost all of them i've had these conversations with
them have come to the same conclusion which is almost none of this stuff
is worth it and so you get there you try the fruit and you realize this
is just not worth it so if i can hopefully save somebody a couple
hundred grand who does get there then try and avoid this stuff that's
that's my two cents so that's what that's what i have for you if you've
if you never experienced this stuff or don't know how much it cost this
is how much this stuff costs in the real world i do think you should
spend less than if you can uh less than 10 of what you make because if
you can

13 00:12:00.000 --\> 00:13:00.000 spend less than 10 what you make then
it means that honestly within two to five years you can live completely
free of anything because your wealth is a ratio between your expenses
and your income it is not a number that's the thing everyone messes up
it's an expense it's a ratio of income to expenses that is what wealth
is and so if your income to expense ratio is ten to one you are very
wealthy so whether you live on thirty thousand dollars a year and you
make three hundred thousand a year that is a very wealthy person they're
extremely extremely well set up they have no stress because they have so
much more than they need and so that's what i think the key comes down
to is having so much more than you need and the happiness equation if
you guys don't know what it actually is it's not uh when i get x i will
be happy that's uh that's not the right one the right one is haves over
once and if you can get your wants to zero

14 00:13:00.000 --\> 00:14:00.000 then it doesn't matter what you have
on top equals infinity and so as much as everyone likes to chase the the
top number to compensate for the fact that they want these things if you
can simply decrease the desire you will increase the abundance in your
life and by extension your your income to expense ratio which is what
will build your wealth and give you the freedom you want so anyways this
has been a little experience of mine that i hope you find valuable and
hopefully you don't have to make some of these lovely mistakes that i
have keeping awesome lots of love i'll catch you guys soon bye
