The video provides advice on how to get rich, drawing from the speaker's own experiences and a fictional encounter with a young man named Jake. The advice is structured into five key principles.
The Encounter with Jake and Mr. Grumpy #
- Jake, from a poor background, seeks advice on how to get rich.
- He approaches an older man, "Mr. Grumpy," at a cafe.
- Mr. Grumpy dismisses Jake, calling the younger generation lazy and entitled.
- The speaker intervenes, defending Jake and the younger generation, highlighting the increased complexity of the modern world.
- The speaker later offers Jake personal advice, which forms the basis of the video's five principles.
Principle 1: Sharpen Your Axe (Master High-Income Skills) #
- The school system doesn't prepare individuals for real-world wealth creation.
- Instead of immediately trying to start a business, focus on developing high-income skills.
- High-income skills are those that can potentially earn $10,000+ per month (e.g., video editing, copywriting, high-ticket closing, software development).
- Mastering these skills takes time and dedication.
- These skills open doors to opportunities and valuable connections.
- Having a high-income skill provides security, as wealth can be rebuilt even if lost.
- Examples include the speaker's son, Curtis, who earned $10,000 a month through videography skills.
- Don't rush the process; think of wealth building as a marathon, not a sprint.
Principle 2: Lock Away Your Money (Invest Consistently) #
- Avoid constantly tinkering with investments, as this often leads to poor decisions.
- Utilize compound interest, which requires money to be invested long-term without frequent access.
- Invest in assets like real estate, high-end watches, gold, or the stock market.
- The speaker emphasizes the stock market as a preferred investment vehicle, having personally made millions.
- The goal is to not just make a million once, but to grow and sustain wealth.
- Set a rule to never sell long-term stocks if possible.
- The speaker's investments generate £17,000 per week in passive income.
- Adopt a mindset of not seeing invested money as "yours" to foster continuous hustling.
- Decide on a percentage of income to invest consistently each month.
- An example calculation: $250/month invested in a low-cost index fund at 10% annual return yields over $1.5 million in 40 years.
- The S&P 500 has averaged 10.98% annual return over the last decade.
- Consistent, small investments (e.g., £5 daily) can accumulate significant returns over time.
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Principle 3: Stop Being So Scared (Take Calculated Risks) #
- Fear of judgment, rather than fear of failure, often paralyzes young people.
- Calculated risks are necessary to get ahead.
- Youth provides the advantage of time, making risks less daunting.
- The speaker's personal experience of quitting a job due to bullying turned out to be a positive risk.
- Younger individuals can afford to take more risks with investments compared to older people who prioritize wealth protection.
- Regret from not taking opportunities is a common pitfall later in life.
- Failure should be viewed as a learning process and testing, not an endpoint.
- Most successful people have failed many times before achieving success.
Principle 4: Remain a Student (Continuous Learning) #
- The Dunning-Kruger effect curve illustrates how false confidence can hinder learning.
- Getting rich is a learnable skill, not just luck.
- Continuous learning and application are crucial, even for older individuals.
- Stay updated with current trends and information (e.g., YouTube, TikTok, financial news) to spot opportunities.
- Learn from those who are ahead and respect the process of earning success.
- The speaker emphasizes learning something new from everyone he meets to stay humble.
- Learning about cryptocurrency in 2019 led to significant financial gains for the speaker.
- The traditional education system's approach to learning is outdated in a rapidly changing world.
- Constant "software updates" for the brain are necessary to avoid becoming irrelevant.
Principle 5: Your Circle of Influence (Befriend Wealthy People) #
- Breaking the poverty cycle involves befriending specific types of people.
- A 2024 study suggests that a 10% increase in wealthy friends correlates with a nearly 3% greater chance of stock market participation and a 5% increase in saving money.
- Wealthy friends can demystify investing and side hustles, offering guidance and explanations.
- Not about ditching old friends or befriending someone solely for their wealth, but naturally associating with people who frequent places where successful individuals gather.
- The speaker expresses confidence in young, ambitious, and motivated individuals.
- He pledges to defend the younger generation against dismissive older individuals.
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