https://www.youtube.com/watch?v=rnvOwA39dDg

1 00:00:00.000 --\> 00:01:00.000 what's going on everyone i've got a
special presentation for you guys today this has been on my mind for um
probably about half a week now um and it's gonna be about money all
right everybody's favorite topic um and it's probably not gonna be what
you think it's gonna be but it's gonna be really good promise so um one
of the things that's top of mind is that i get a lot of conversations
from entrepreneurs who are like i just want to be in the top one percent
i wanna and the thing is is the people who are in the top one percent
live a different way and they also don't live now the way they did to
get here all right and so i'll tell you a quick story and then i'm going
to show you what i mean with this beautiful pyramid and if you're
listening then i'll try and explain it visually or audio wise so when i
was um very early on in my career um or earlier than now right uh i was
showing up to a mastermind event that i had it was the first mastermind
event um i think we had 28 people who were showing up and all these
people were paying 40 000 a year and i remember pulling up to our event
it was in

2 00:01:00.000 --\> 00:02:00.000 albuquerque uh new mexico and um they
were walking into the hotel as i was pulling up right i was like nervous
and excited and all that stuff and um one of the one of the girls monica
guitar um uh was like as we're getting out of the car she was like i
thought you guys were supposed to be rich and she literally said that
and i still remember to this day because it was like such a moment for
me um i don't even know if she remembers it but uh we were pulling up in
a prius that had a crack across the windshield and a dent in the side
door all right and this car was probably a six thousand dollar car tops
right and the thing is is at that moment i was a millionaire like i had
a million dollars in cash right um sitting in my bank account after
taxes and yet i was driving a 6 000 car and so one of the things that i
consistently see um is people outliving their means and this is that's
not a new message but for some reason it still doesn't resonate with
people and so i'm going to level up this conversation a little bit
because you're like but wait alex i

3 00:02:00.000 --\> 00:03:00.000 thought you now have a bentley which i
totally regret by the way but i do have a bentley and we have a very
nice home the thing is is a bentley for me relative to my income is less
than one week's income for me income and so one of the important things
to understand is the relative cost of any of anything that you have and
so i have always used this back of napkin math to justify expenses all
right and so as a result of that i always have lived on less than five
percent once i started making money less than five percent of what i
made which pretty much meant that until i was making a million dollars a
year or more i lived on thirty thousand dollars a year right which is if
you've heard my other story about once layla and i made our first
hundred thousand dollars i told her this is awesome that means that we
have three years of living if we make no more money all right because we
knew that on on on 1500 a month we could live right decently comfortably
and i'll tell you this

4 00:03:00.000 --\> 00:04:00.000 comfort's nice but there's not that
much more enjoyment you get out of like driving evently versus a normal
car now i'm sure there's car people who are like whatever but i'll tell
you that the incremental gain that i have in my life is not worth the
money this is probably the last expensive car i'll ever have it's also
the first really expensive car that uh we ever got but what i wanted to
do though um and kind of shift the conversation is not just talk about
you know making uh or spending a lot less than you make because i saw
somebody recently who was one of our clients um they graduated from the
program and then they went on to start an online business they were gym
owner um and i saw the expenses that they were incurring and i was like
man like that worries me you know what i mean it just it it worries me
because i i see a lack of judgment um because you don't know how things
are going to change i mean i think if the last year for anyone can say
that things can change quickly and i want to have tons of dry powder
tons of reserves to pull on if i need them and so for me i get more
anxiety by having expenses and so for me to actually lower my anxieties
i lower how much i spend

5 00:04:00.000 --\> 00:05:00.000 and so if that's something that you can
associate for yourself as in the less money i spend the more relaxed i
am um then i would encourage you do it because for me it's been one of
my kind of secret sauces of success is just like just don't spend a ton
of money especially relative to what you make and so what i want to do
for the rest of this is kind of first talk about what it looks like to
get in the top one percent and then how to get there all right so right
here you've got a pyramid and if you're listening um then you can listen
along but there's four layers to this pyramid all right and this is kind
of the top one percent pyramid the bottom layer of this is people who
have these are considered high net worth individuals all right that
means you have one to five million dollars in assets all right now this
may surprise you but uh the people at this level and i've got my notes
here so i'm going along with this um in the united states it's 1 in 69.
so 1 in 69 people is has between one and five million dollars so being
over a million is not even top

6 00:05:00.000 --\> 00:06:00.000 one percent anymore um i mean it sort
of is but like it technically it's a little like if you actually had one
million dollars you wouldn't be in the one percent um but i find that
but that's in assets not income right that's in assets not income you
don't need to make a million dollars a year to be in the top one percent
right and what's crazy to me is that the top one percent income is 400
000 a year but the top one percent in assets is only a million or a
million and a half bucks how nuts is that it means people spend all
their money that's what that means so if you have a top one percent
income you should be way above the top one percent in assets but it
doesn't work that way because people always want to show off and people
can't think long term and the only thing that i've been continually
reading about because i've been really pouring a lot into really reading
a lot about monger and um and uh buffett so warren buffett and charlie
munger who are founders and one of berkshire hathaway is how they live
and how they think in

7 00:06:00.000 --\> 00:07:00.000 terms of long term and so i'm going to
transition to talking about how to get there but i'm going to finish
this little chart for you so this is the top 1.5 percent roughly of the
u.s is one to five million in assets and that's one in 69 so if you i
for me i like the one in personally it makes it more real for me so 1 in
69 people all right now in the us the next level is very high net worth
so you go high net worth to very high net worth individual for this it's
0.3 percent all right of people that's crazy now here's what it is in
math that's one in 338. so one in 338 people is worth between five and
thirty million dollars that's what they have in investable assets five
and thirty million dollars i'm i'm purposely putting this out there to
hopefully counter the instagram culture of flexing in front of a
lamborghini or bentley right whatever because most people are broke

8 00:07:00.000 --\> 00:08:00.000 like most people are poor and i i think
that i'm gonna i'm gonna i'm gonna lay out a a a plan for you that's
very simple to get you above this to really just be in the top one
percent and the thing is is like i said the top one percent income
earners or earn over four hundred and twenty thousand four hundred forty
thousand a year depending on where you're looking that's per year so for
you to get over five million like you just need to live on a lot less
than you make if you're in the top one percent income earners you should
be in this five to thirty million dollars within not a ton of time right
and then the the level above that is ultra high net worth individuals
which is uh one in 13 83 and that's uh what is that that's point zero
seven percent all right point zero seven percent all right and then
finally i'll just finish this little chart out um billionaires is uh one
in

9 00:08:00.000 --\> 00:09:00.000 468 000 all right and uh and the
percentage there is point zero zero zero four zeros three zeros three
zeros two percent all right now the reason that uh the jump between the
the third stage and the fourth stage is so large is that the range is
between 30 and a billion so everyone that's between got between 30 and a
billion is in the next level and then billionaire is the fourth category
so these are kind of like the the four layers above the one percent the
very first layer kind of gets you into the top one percent more or less
right and then um above that you have the varying categories the thing
is is that in order for you to get to above five million dollars so not
even top one percent but top point three percent all right one in three
hundred and thirty eight so you walk into the 238 people you're probably
the richest person in the room all right for you to do that you got to
save like 15 grand a year

10 00:09:00.000 --\> 00:10:00.000 for 30 years that's it and that's
assuming just nine percent returns which is just the stock market i just
put in the s p 500 and don't do anything with it right that's not doing
crypto that's not that's not that's not learning how to like it's
literally just save a you know 1200 a month and and put it into the s p
and do it every month that's it if you make four hundred thousand
dollars a year so you're making thirty five thousand dollars a month
right if you live on five you can put ten thousand dollars and you'll be
at the you'll be at the top end of this right but everyone just spends
so much money and so i i i just when i see this it's both incredibly
encouraging to me and also incredibly saddening it's encouraging to me
because i feel like genuinely everyone can get to the top one percent
which doesn't make math mathematical sense but it makes it makes
realistic sense and you feel like but alex how do i how do i save twelve
hundred dollars a month right so it's two things it's income and time

11 00:10:00.000 --\> 00:11:00.000 right net income being like minus your
expenses so it means it's make more money spend less money the easiest
thing most people do is they just spend too much money right and i know
that sometimes you can like it's sometimes apparent depending if you
like follow my instagram or whatever but like layla and i think i was
asking for her to give me the numbers from last year but we live on less
than five percent of what we make all right and you're like well sure
that's because you make a lot yeah but i lived on that when i made
nothing right and so i think most people like you should live on 30
grand 40 grand a year and the thing is is that you already know in your
heart that spent making that spending more of the money is not going to
make you happier i'll tell you right now it's not and if the point of
spending money is to make you happier i'm telling you it's not sure like
i have this studio i can justify it as a business expense um but i did
this mostly because i enjoy it and to me from from a percentage of
income it's negligible right and so i got this fancy setup only

12 00:11:00.000 --\> 00:12:00.000 after i had already crossed three of
these levels right i'm saying this because it just it frustrates me
because i really believe anyone can do it i really do you should have to
live on a lot less than you make and so anyways to finish this out right
what do you do most times you're going to have to sell something right
either you're selling someone else's product or you're selling your own
product either way i say product i mean product service whatever right
but either one of those categories and if you make a hundred thousand
dollars a year a hundred thousand dollars a year and you live on 30 you
can do this not only can you get into this quote bottom level the top
one percent but you can get the top point three percent right now if
part of you is like well you know that then what's what's the point of
living it really depends on on what you value if like and this is kind
of backwards because it's like the type of person who wants to have more
money wants to spend the money they have then i can understand it but
then at that point just

13 00:12:00.000 --\> 00:13:00.000 don't yearn for more does that make
sense so like don't be dissatisfied that you haven't achieved your goal
for me what i'm looking at is like how can i get into this category by
the time i die and use that to impact humanity like in a way that's
that's meaningful that's what i'm that's what i'm trying to do right and
so anyways i told you the prius story to illustrate a point which was i
was a millionaire and living on less than three thousand dollars a month
right um i owned my car our rent was 1200 bucks and layla and i lived on
we bought food at the grocery store you know what i mean like we went
out once a week like it wasn't like you can do that and live a normal
life like a comfortable life and that was when we were making a lot of
money and that's because i always have a fear or had a fear that i would
i was like what happens if we stop making money i don't i just don't
want to lose everything and so i think if you can be satisfied and
decrease your anxiety or make the amount that you spend decrease your
anxiety you will be happier so i'm going to leave you with this one
piece as a final note on this

14 00:13:00.000 --\> 00:14:00.000 which is the simple retirement
calculator all right world's simplest retirement calculator so if you
live let's say let's say that you are currently uh 30 years old all
right so you're currently 30. and um you want to retire all right so
let's say you want to retire soon let's say you want to retire by the
time you're 40. all right crazy you're going to try and retire entirely
by your 40. okay cool i dig it so if you're a retired boyfriend i'm
saying retired but realistically you're going to work because you like
working but let's just say that you won't you don't want to have to work
you want to work on the stuff you like working on after you're 40. cool
no problem the percentage of your income that you spend is going to be
the thing that dictates how quickly you can retire not how much you make
so for example if you make 400 000 a year like i said right and you save
10 right

15 00:14:00.000 --\> 00:15:00.000 versus making a hundred thousand
dollars a year and you saving uh let's say eighty percent is what you
save then what you're what you every year you're adding four years of
retirement because it means that you're spending 20 and saving 80k whoo
that's great that means for every year you're getting four years back
which means if in 10 years at this point you'd have 40 more years right
once you hit 40 because you had 10 years of stockpiling for each year
right you'd have 40 years of living now mind you that's assuming it's
your current level and that the money that you now have saved up at this
point because you should have 800 000 right and that's assuming that
none of the money you had made any money so it'd probably be closer to
like 1.2 right million by the end of that decade that's really
conservative still maybe even 2 million right at that point that this
money isn't even making you money that's just literally assuming a
straight decrease in how much you spend right

16 00:15:00.000 --\> 00:16:00.000 that every year would just go down
which isn't even realistic right but if you did that then you'd get
there and that's on 100 a year right that's it on the flip side if
you're at this 10 guy then every year he gets one tenth of a year right
because he's saving 40 it costs him 400 to do a year which means that
this guy is never really going to be able to retire right and he's
always going to be stressed or she's always going to be stressed and so
i say that only to illustrate one point which is you have to spend less
than you make it's sometimes a simple that people don't want to do and
it means that you can either have your ego and how you look to everyone
or you can have your ego based on the freedom that you feel and i know
that the vast majority of people will never do that i get messages every
day from people who are like you know they've been trying for 10 years
to make a million dollars a year rather than maybe trying to make a
hundred thousand dollars first right and the thing is is to be in this
top one percent you don't need to make a million dollars a year not even
close you're not even close you

17 00:16:00.000 --\> 00:17:00.000 don't even need to make close to a
million dollars here to be in the top one percent right if you just add
a little bit of time you can get in the top one percent just being
reasonable right you can get in the top point three percent by also
being you know unreasonable because compared to everyone else right just
because the thing is is most people are insane in terms of their
irrational with their behavior and their expenditures they are stressed
about the amount of money they spend and yet they are the they're in
complete control of how much they spend just spend less and you'll be
less stressed so anyways that is my money money message for everyone
today um we still continue to less on live on you know five percent
maybe ten percent of what we make i don't think we live on ten percent
we live on five percent of what we make and the thing is is like at that
point if you live on if you live in five percent or ten percent of what
you make then it means that literally one year if you as like walk walk
with me for a second if you live on ten percent of what you make and
your money grows at ten percent

18 00:17:00.000 --\> 00:18:00.000 then in one year you could retire
assuming you have a stable income from the the savings that you had on
the other 90 right figuratively one year 15 months whatever but you get
the idea right does that make sense for everybody like if you live on 10
percent of what you make or you live like you're like but man that's
like poverty levels it's like yes but it's poverty levels in your mind
based on your perception not based on reality of the fact that you're
going to be stockpiling money that will continue to feed you forever
along you want right and so the the moral of the story is spend less
than you make the the greater you can create that disparity the faster
you can retire or get to a point where you choose to work on the things
that only you want to work on right and getting into the top one percent
is literally a matter of saving a thousand fifteen hundred bucks a month
and putting in the s p 500 that's about it it's all there i mean like
that's that's it that's all there is to it and the thing is is it's

19 00:18:00.000 --\> 00:19:00.000 so simple no one will do it that's
okay but you're a smart cookie and you're gonna do it because um you
think that simple things are usually the keys to the universe which i
agree with you so keep being awesome lots of love and i'll catch you
guys on the flip side bye
