Transcript for:
Key Points on Becoming a Millionaire by 32

do to become a millionaire by 32. Everything I will be sharing is coming through

  1. my own personal experience on what has worked and what HASN’T 2) tips that i’ve gained from reading books of the biggest money and business experts in the world and 3) psychological based evidence around the human brain. Later in this video I’ll also talk about how one of these made me $40,000 better off within one hour. So the first thing I am going to do if focus on my all-weather portfolio. This is based on the fact that most people earn wages, but you’ll never get wealthy working for wages because wages grow linearly
  • that is the amount you earn is directly related to the amount of time you work. On top of that, just relying on wages is risky because the moment you decide to quit or get fired that income stream stops coming in. What I’ve realised over the past few years is to also focus on building up passive streams, which have the potential to grow non linearly because they dont require you trading your time for money. As soon as you make one on auto pilot and let it run, it gives you time to focus others and grow your income more and more because the ones on auto pilot are continuing to bring in money for you without you needing to devote any time to it. The second thing I will be doing is thinking in terms of first principles. I first came across this concept in an interview with Elon musk. The idea of it is that just because things have always been done a certain way that doesn’t mean it’s the best way and that we shouldn’t be afraid to question the status quo. When someone tells me something isn’t possible I have this knee jerk reaction to prove to them why it is possible. I used to host social events- and as part of the marketing for one of the events i organised - I told my business partner at the time that we need to make a really cool physical invite, one that people want to upload and put on social media and we can get free marketing, and i remember him saying at the time oh we cant do that because of this and we’ve always done it like this so it doesn’t make sense to change it now it will take too much time. I feel like that’s this subtle messaging is something that I’ve faced so many times in different facets of my life and its just way of saying stick to the blue print, stick to convention and it’s these moments where you’ve got to have some sort of restistance and say no I’m going to explore another way. One person thought he can build rockets and send them to mars- that person was Elon musk. Someone else thought they can bend a piece of aluminium and get it to fly through the air - that was the wright brothers. In any concept, you can’t get extraordinary results from ordinary actions. The world doesn’t offer outsized returns for people and brands that serve up “more of the same”. The third thing I am going to be doing to get to that million dollar mark is utilising other people strengths - and this is the one that saved me £30,000 within an hour. There is a saying that is “if you are the smartest person in the room, you’re in the wrong room”. I used to always think I could figure everything out myself and that I can save money just by doing things on my own but now I’ve realised that different people have completely different unique strengths and skills and that is essentially how they make a living. I purchased a property under a company structure and I needed to move it to another company and I realised to do that I would need to pay $30k in different forms of taxes. So I tried to google why I needed to pay this and whether there were any examples that proved i don’t need to pay it and there was a way around this. I then spoke to my friend told me why don’t you just speak to a tax advisor that’s what they’re their for - I forked out what killed me at the time, $200 for a 1 hour chat with a tax adviser who is a specialist in this field and gave me a completely legal tax efficient strategy which saved me from paying that $40,000
  • and had I not done that I would’ve ended up paying that money away not knowing any better. In a world where hard work is no longer a competitive advantage - because everyone works hard, the competitive advantage is actually in thinking expansively and connecting with the right people.The forth thing I am going to keep in my mind until I get to my goal is the concept of the slight Edge. This is based on a book written by motivation speaker Jeff Oslon. According to Jeff success and failure are both a result of the slight edge - the idea that simple little things that we choose to do or choose not to do on a daily basis have a compounding effect on who we ultimately become. So I like to use the penny compounding parable here - there are two people who are given the choice to either get one million dollars at the beginning of the next month - thats it a flat cheque for 1 million dollars, or choose to receive one penny at the beginning of next month but that penny doubles every single day for the next 30 days. The person who chooses to go with the flat one million dollars got that one million dollars, but the second kid who chose to go with the penny that doubled every single day ended up with over $5.3mn. And if you take this and stretch it into a longer timeframe, thats essentially how compounding in our life works. These small little things you choose to do, or don’t do, every day matter because they have long-term ramifications that will eventually show up. I now try to remind myself whats uncomfortable now will become comfortable later. Lean into your money making superpower. I saw a YouTuber oliur talk about this one and I really loved the way he described it. He talks about how everyone has this money making super power to lean into. Most people don’t tap into it, they don’t understand it or they haven’t yet figured it out but everyone does have it. The way I kind of see this and have interpreted it is that you need to lean into our most valuable strengths, these strengths can come from 1) our upbringing, your parents and what you’ve been surrounded with and knowledge we’ve absorbed growing up 2) it can come through the skills you’ve learnt just through doing or that you’re teaching yourself or 3) through your passions or interest but through one of these avenues will unlock your money making superpower that you can lean into it. The way I see it is im still trying different things, explore, discover new things - starting a YouTube channel being one of them - and by doing this I am going to lean into my strengths and will eventually hone into my money making superpower. Living below your means. It’s really easy to spend everything you earn and living paycheck to paycheck. As you earn more you want a bigger house a nicer car, and your lifestyle choices inflate as your monthly pay check gets bigger. When I first started working I’d spent everything I earned and every single bonus would go towards material items and things that I couldn’t care less about 2 months later, and then I realised if I keep doing this I’m going to get to 35, having worked for 15+ years and have nothing substantial to even show for it, so I massively changed my spending habits and I talk about how much i spend now in this video here. do agree that your teenage years and early 20s are when you want to be really living your life to the max so i wouldn’t really worry about saving the $5, $10 at this age - but then later there comes a time where you want to be making some sacrifices in the short term and holding off on buying some things now, with the aim to reinstate those things back into your life later when the trade off isnt as big. So for example, I’ve wanted to buy a new car for a while but I ran the numbers and actually I barely drive - i work full time and i travel to work on the train and when i go out on the weekend i just grab an uber, and the decision to sell my last car and wait a bit till i buy my new one has saved me a ridiculous amount of money - i save money on insurance, maintenance, finance or a lease, not to mention also the money that i would’ve lost in the depreciation. So for me -given having a car isn’t a necessity for me right now, I’m using that money now to invest in assets instead to build a lifestyle that i want, and then eventually have these assets and the cash flow coming in from those assets pay for all the nice luxury things later on. If you liked this video I’ve made another one on my journey so far and what I am going to be doing going forward. I’ll link that here, thanks for watching
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