00:00:00
If you don't get in the game of home
00:00:02
ownership and you rent in your 20s and
00:00:04
you rent in your 30s, you're going to
00:00:06
turn around in your 40s and having not
00:00:07
built any net worth. And in fact,
00:00:10
homeowners in America are worth 40 times
00:00:13
more than renters. And I'm talking about
00:00:16
ordinary Americans.
00:00:17
>> But that doesn't mean that buying a home
00:00:18
made them rich, right?
00:00:19
>> It actually does. And I'm going to go
00:00:21
through that.
00:00:22
>> But am I not better off renting and
00:00:24
investing in the stock market? I want to
00:00:26
bust this myth because I have spent the
00:00:28
last 33 years of my life helping
00:00:31
millions of people with ordinary incomes
00:00:33
become financially free, including nine
00:00:35
years as a financial adviser at Morgan
00:00:37
Stanley and I got to see firsthand how
00:00:39
everyone who came into my office with an
00:00:40
ordinary income built wealth. And
00:00:42
there's a formula to getting rich, but
00:00:44
there's also a system to how you put
00:00:46
your financial life on autopilot in less
00:00:49
than 10 minutes. And it doesn't require
00:00:51
discipline, budget, and you don't have
00:00:54
to make a lot of money to get started.
00:00:55
But unless your financial plan is
00:00:57
automatic, it will fail. But more
00:00:59
importantly, I believe the next 10 years
00:01:00
will be the greatest opportunity to
00:01:01
build wealth in our lifetime. And yet, 7
00:01:03
out of 10 people right now are living
00:01:04
paycheck to paycheck. More than 50% of
00:01:06
Americans don't have savings. And most
00:01:08
people don't know where their money
00:01:09
goes. And in fact, when we ask people,
00:01:11
how much money would it take to totally
00:01:13
change your life? They say $10,000. Now,
00:01:15
how much money do you need to spend a
00:01:17
day to blow $10,000 a year? $27.40
00:01:21
a day. If you invested that a day for 40
00:01:23
years, you'd have over $4,424,000.
00:01:28
That would be life-changing.
00:01:29
>> But just before we get into all of the
00:01:30
specifics and the strategies, do you
00:01:32
have any specific advice to people that
00:01:33
are currently struggled with debt?
00:01:35
>> Absolutely. There's a very simple
00:01:36
formula to getting out of debt called
00:01:38
dole. I'd tell you to
00:01:42
>> listen, my my team gave me a script that
00:01:44
they asked me to read, but I'm just
00:01:45
going to ask you um in the nicest way I
00:01:47
possibly can. Thank you. Thank you first
00:01:49
and foremost for choosing to subscribe
00:01:50
to this channel. It is um it's been one
00:01:52
of the most incredible crazy years of my
00:01:54
life. I never could have imagined. I had
00:01:56
so many dreams in my life, but this was
00:01:57
not one of them. And the very fact that
00:01:59
these conversations have resonated with
00:02:00
you and you've given me so much feedback
00:02:02
is something I will always be
00:02:03
appreciative of. And I almost carry away
00:02:04
a sort of burden of uh responsibility to
00:02:07
pay you back. And the favor I would like
00:02:09
to ask from you today is to subscribe to
00:02:11
the channel if you um would be so
00:02:13
obliged. It's completely free to do
00:02:14
that. roughly about 47% of you that
00:02:17
listen to this channel frequently
00:02:18
currently don't subscribe to this
00:02:19
channel. So, if you're one of those
00:02:20
people, please come and join us. Hit the
00:02:22
subscribe button. It's the single free
00:02:24
thing you can do to make this channel
00:02:25
better. And every subscriber sort of
00:02:27
pays into this show and allows us to do
00:02:29
things bigger and better and to push
00:02:30
ourselves even more. And I will not let
00:02:32
you down if you hit the subscribe
00:02:33
button. I promise you. And if I do,
00:02:34
please do unsubscribe, but I promise I
00:02:36
won't. Thank you.
00:02:45
David, what has your mission been for
00:02:47
the last three decades?
00:02:50
>> I have spent the last 30 years of my
00:02:53
life helping ordinary people, people
00:02:56
with ordinary incomes become financially
00:02:59
free. And the last 20 years I've spent
00:03:02
helping people become automatic
00:03:03
millionaires. So, I love to teach anyone
00:03:06
at any income level, minimum wage,
00:03:08
living paycheck to paycheck. You might
00:03:10
be in debt. You might be struggling.
00:03:12
I've taught millions of people how they
00:03:16
can improve their life financially.
00:03:17
That's what I've been dedicated to. And
00:03:19
I spent 33 years total in the financial
00:03:21
service industry.
00:03:22
>> And is this conversation just for people
00:03:24
that are in their 20s or is it
00:03:25
applicable to everybody at every age?
00:03:28
>> It's applicable to everybody at every
00:03:30
age because whatever your age is, it you
00:03:32
know, look, Stephen, so many people are
00:03:33
living paycheck to paycheck right now in
00:03:36
this country. What's happening right now
00:03:37
is that seven out of 10 people are being
00:03:40
left behind financially. Seven out of 10
00:03:42
people right now are living paycheck to
00:03:43
paycheck. When you go into looking at
00:03:46
finances in America today, half of
00:03:49
Americans can't get their hands on
00:03:51
$1,000 in case emergency purposes. And
00:03:54
my biggest fear, why I updated this book
00:03:56
and why I decided to come back out one
00:03:58
more time and do another financial
00:04:00
literacy campaign is I'm afraid people
00:04:02
are being left behind. I think with AI
00:04:05
right now, the next 10 years is going to
00:04:07
be the greatest opportunity to build
00:04:09
wealth in our lifetime.
00:04:12
That's the good news. The bad news is a
00:04:15
lot of people being left behind. My goal
00:04:17
today, next hour is very simple. I want
00:04:19
to give you the system on how to become
00:04:20
an automatic millionaire at any age
00:04:22
level, at any income level. But what I'm
00:04:24
going to teach you is how to put your
00:04:26
financial life on autopilot in less than
00:04:29
10 minutes. Because when your financial
00:04:32
life is automatic, your habits work
00:04:36
automatically. And an automatic
00:04:38
financial life doesn't require
00:04:41
discipline, doesn't require a budget,
00:04:44
and you don't have to make a lot of
00:04:46
money to get started.
00:04:47
>> Why should people be taking advice from
00:04:49
you on this subject matter? What's what
00:04:51
have you done in those 33 years?
00:04:53
>> I've been doing this my entire life.
00:04:54
Right? So, if you go all the way back, I
00:04:57
started investing at the age of seven.
00:04:59
And how that happened is I had a
00:05:01
grandmother, amazing grandmother. Her
00:05:02
name was Grandma Rose. At 30, she made a
00:05:05
decision that changed the whole destiny
00:05:07
of our family. And the decision she made
00:05:09
was she want to be poor anymore. And at
00:05:11
30, on a very cold day on her birthday,
00:05:14
she turned to my grandfather and she
00:05:16
said, "We don't have any money. We're
00:05:18
living paycheck to paycheck and I don't
00:05:20
want to retire here. I want to go to
00:05:22
California. I want to be where it's
00:05:24
warm." And my grandfather said, "Well,
00:05:26
what do you want to do about it?" and
00:05:27
she's like, "We need to change what
00:05:29
we're doing or nothing will change." And
00:05:31
so my grandmother started saving 50
00:05:33
cents a week out of her paycheck. So 50
00:05:36
cents each because they were like middle
00:05:38
class people, right? Didn't have a
00:05:40
college education. My grandfather worked
00:05:42
in a plant. My grandmother worked in
00:05:44
retail. But she started saving small
00:05:47
amounts of money. And over her lifetime,
00:05:50
she became an investor. And she became a
00:05:52
self-made millionaire. My first book,
00:05:54
which you have sitting over here, was a
00:05:55
book called Smart Women Finish Rich. It
00:05:57
was the lessons that my grandmother
00:05:59
taught me. So, at seven, my grandmother
00:06:02
took me to McDonald's and she taught me
00:06:04
a lesson that would change my life. She
00:06:06
said, "David, you're sitting here eating
00:06:08
McDonald's and cheeseburgers and your
00:06:10
French fries and your milkshake." She
00:06:12
said, "I'm going to teach you today how
00:06:13
to be rich for real. You like to play
00:06:15
Monopoly. Here's my lesson today." She
00:06:18
said, "There's three types of people.
00:06:20
those like you who are here eating right
00:06:22
now, you're what's called a consumer.
00:06:25
She said the people over there who have
00:06:26
been working, they're called employees
00:06:29
and they've been working for minimum
00:06:31
wage and that's a very hard way to live.
00:06:34
She said they make at the time they made
00:06:35
85 cents an hour. And she said the third
00:06:38
type of person is the person who owns
00:06:40
this place. They're called an investor.
00:06:43
And she said, "Today, I'm going to teach
00:06:44
you how to buy stock in McDonald's so
00:06:47
that when you come to McDonald's, you'll
00:06:49
make money from everybody who's here.
00:06:50
When your friends come to McDonald's,
00:06:52
you'll make money from them, and you'll
00:06:54
be an owner of McDonald's." And she took
00:06:57
me down to a brokerage firm, helped me
00:06:59
buy my first share of stock at
00:07:01
McDonald's.
00:07:02
That moment changed my life because what
00:07:04
she made me realize is like everything
00:07:07
that we do, I'm seven years old.
00:07:09
everything that we do, there's an
00:07:11
opportunity to be an investor and own
00:07:13
that. So like at nine years old, I'm at
00:07:15
Disney. I'm like, "Hey, Mickey Mouse,
00:07:17
are you public?" So I was like not a
00:07:20
normal kid in that way because I started
00:07:22
investing at a young age.
00:07:25
But then I made a lot of mistakes. Then
00:07:27
I went to college. Then I got myself in
00:07:29
credit card debt. Then I believed all
00:07:32
the myths that young people often
00:07:33
believe. I believed I couldn't really
00:07:36
invest a lot until I made a lot of
00:07:38
money. So, in my early 20s, I was making
00:07:42
money but spending everything. So, I was
00:07:44
went from making nothing to making
00:07:46
$50,000 a year and I'm still broke. I'm
00:07:50
like, well, it's not enough money. So, I
00:07:51
went to $75,000 a year, still broke,
00:07:54
spending more. Then I got to $100,000 a
00:07:57
year in income. Lot of money, right? In
00:07:59
my 20s. Oh my god, I'm rich. No, I was
00:08:02
still spending more than I was making at
00:08:04
that point. I was a financial adviser
00:08:07
and al
00:08:08
>> that was my job. I was working at Morgan
00:08:10
Stanley helping people plan for
00:08:12
retirement teaching retirement seminars
00:08:16
and I met this ordinary couple that came
00:08:18
into my office at the age of 52, Jim and
00:08:21
Sue McIntyre. They had an ordinary job.
00:08:24
That year they had made a little over
00:08:25
$53,000.
00:08:28
Their average income over their lifetime
00:08:30
was $40,000.
00:08:32
And at 52, Jim put out all the
00:08:35
statements on a table in front of me. I
00:08:37
sat there and added them up and they had
00:08:39
a net worth of $1.8 million.
00:08:42
And I sat back at a table just like this
00:08:44
and said, "How did you do this?"
00:08:49
And they had just been in my class for
00:08:50
four weeks. They're like, "David, we did
00:08:51
a lot of what you talked about, but we
00:08:53
didn't have a budget because budgets
00:08:55
don't work." and they talked about why
00:08:57
budgeting didn't work for them. They
00:08:59
said, "We put everything on autopilot.
00:09:01
We saved money automatically for
00:09:03
everything."
00:09:05
And that was the moment that changed my
00:09:07
life. I realized that day as somebody
00:09:11
who was living paycheck to paycheck with
00:09:12
a high income. These people had half the
00:09:15
income that I did and they were able to
00:09:17
retire at 52. I was in my mid20s and I
00:09:22
realized that if I didn't start saving
00:09:24
and investing, if I didn't change,
00:09:27
nothing was going to change and I would
00:09:29
never have the financial freedom that
00:09:31
they had. And so I went home that day
00:09:34
and I changed everything in my life. Now
00:09:36
I had a lot of bad habits. So I had a
00:09:38
lot of things that needed to be changed.
00:09:40
You were the senior vice president at
00:09:42
Morgan Stanley when you stepped down and
00:09:44
you soon after wrote this book called
00:09:47
Smart Women Finish Rich. It begs the
00:09:49
question, what are the differences that
00:09:51
you saw through your process of
00:09:53
financial education that women face
00:09:56
versus men?
00:09:57
>> I started I was in business with my
00:09:59
father and we had a lot of older clients
00:10:02
and I would sit in on meetings one after
00:10:04
another with widows. So in the first
00:10:06
month of my career, I sat in three
00:10:09
meetings with three widows where the
00:10:11
husband had dropped dead suddenly. And
00:10:13
my dad at the time was teaching these
00:10:15
women how to read their brokerage
00:10:17
statements, how to write checks, and how
00:10:19
to know if they would have enough money.
00:10:21
And I thought, "This is crazy." And I
00:10:24
said to my dad for the third
00:10:25
appointment, "Dad, what do you what
00:10:27
what's going on here?" And he's like,
00:10:28
"Well, what do you mean?" I go, "Well,
00:10:29
you're teaching these women when their
00:10:30
husband has just died how to handle
00:10:33
their finances." And he said, "David,
00:10:36
not all women are like your grandmother.
00:10:38
Your grandmother was a rarity." And I
00:10:40
said, "Dad, that's crazy. I'm going to
00:10:42
go out and teach a class for women and
00:10:43
money." And when I started teaching the
00:10:46
class for women money, here's what I
00:10:47
learned. Here are the things that make
00:10:49
women different than men when it comes
00:10:50
to money. Women, first of all, live
00:10:53
longer than men, which means they need
00:10:55
more money than men do. The average age
00:10:57
of widowhood in America when I wrote
00:10:59
that book originally was 57, Stephen.
00:11:02
Now it's 59.
00:11:05
Okay. You do all these shows on
00:11:06
longevity. It seems like everybody's
00:11:08
living forever. They're not. Okay. The
00:11:10
average age of widowhood in America is
00:11:11
59 years old.
00:11:12
>> When you say widowhood, you mean the age
00:11:14
in which a woman becomes a widow.
00:11:16
>> Exactly. They're married and they lose
00:11:17
their husband.
00:11:18
>> Okay.
00:11:18
>> Okay. So, so women are often wiped out
00:11:20
when that happens financially. Second
00:11:23
thing is that women are hurt more than
00:11:24
men when it comes to divorce.
00:11:27
The third thing that affects women is
00:11:29
that they work fewer years. I'm like,
00:11:32
these are just the the the the
00:11:33
statistical realities. Women work fewer
00:11:36
years than men because they have
00:11:37
children. So that's an average of
00:11:39
somewhere between 7 to 11 years less.
00:11:41
And that's less money going into social
00:11:43
security, retirement accounts, and it
00:11:45
affects their earnings and often they
00:11:47
earn less. So what I have taught for
00:11:50
third nearly 30 years now is as a woman,
00:11:52
I don't care what your situation is. I
00:11:55
don't care if you're an entrepreneur. I
00:11:56
don't care if you're a stay-at-home
00:11:57
mother. I don't care if you're married
00:11:59
to local bank president. I don't care if
00:12:01
you're married, singled, widowed,
00:12:02
divorced. As a woman, you have to be in
00:12:05
charge of your finances. Period. Drop
00:12:08
the mic.
00:12:10
End of discussion. You can't delegate
00:12:12
your financial well-being to anyone
00:12:15
else. You have to be in charge. Now, I
00:12:18
will also tell you, Stephen, that women
00:12:19
make better investors than men. They
00:12:22
they make better investors than men
00:12:24
because often women don't trade like men
00:12:26
do and they are they do more research
00:12:29
before they invest and their performance
00:12:31
is better. They're way better long-term
00:12:34
investing than men are.
00:12:36
>> I heard some stats once upon a time that
00:12:37
men are
00:12:39
the majority of the gambling addicts.
00:12:41
>> Well, I'm sure they're the majority of
00:12:42
the gambling addicts. And also when you
00:12:44
look at trading because trading's become
00:12:46
a very big thing, but trading's always
00:12:47
been a thing.
00:12:48
>> Trading meaning
00:12:48
>> trading like trading stocks, buying and
00:12:50
selling stocks. Now it's buying and
00:12:51
selling cryptocurrency, buying and doing
00:12:54
selling options. All these things are
00:12:56
primarily men doing it and they don't
00:12:59
make money because the bulk of people
00:13:00
who trade lose money day in day out in
00:13:05
year out. I teach a philosophy which is
00:13:07
this. Your money and your investments
00:13:09
should be boring. Your life should be
00:13:12
interesting. Your investments should be
00:13:14
boring. If someone's coming to a
00:13:15
cocktail party talking about their
00:13:17
investments and it's exciting,
00:13:19
something's wrong with it.
00:13:22
>> Why?
00:13:23
>> Because sexy is how you go broke when it
00:13:26
comes to money. Boring is beautiful when
00:13:30
it becomes when it's about your wealth.
00:13:32
So, even driving over here, my son was
00:13:34
just like, "Dad, why aren't you trading
00:13:35
Tesla stock?" I'm like, "You know why
00:13:37
I'm not trading Tesla stock? Because you
00:13:39
can't make money trading. You got to
00:13:40
figure out when to buy, when to sell. I
00:13:43
want my kids investing in index funds. I
00:13:45
have my clients investing in index
00:13:47
funds. Boring is beautiful when it comes
00:13:50
to money.
00:13:52
>> Before we get into the real specifics
00:13:54
and the tactical strategies and um we
00:13:57
think about a bunch of the sort of
00:13:58
things you said about debt and credit
00:14:00
cards and saving and getting out of debt
00:14:02
and how to become wealthy and an
00:14:03
automatic millionaire. Is there anything
00:14:05
we should discuss as it relates to the
00:14:07
broader context of what's going on in
00:14:09
the world? Whether it's wealth
00:14:10
inequality, whether it's the amount of
00:14:12
people that are living paycheck to
00:14:13
paycheck, what I'm trying to get a
00:14:14
picture on what the the state of
00:14:16
financial wealth looks like in the
00:14:17
Western world.
00:14:18
>> Yeah. Well, so let's talk, you know,
00:14:19
when people talk about economies. Here's
00:14:21
here's the economy that matters in my
00:14:23
opinion. Your economy, meaning the
00:14:26
person that's listening, the economy
00:14:27
that you're in control of is yours.
00:14:30
You're not in control over what's going
00:14:32
to happen with interest rates, what's
00:14:34
going to happen with geopolitical
00:14:35
things, what's going to happen with AI.
00:14:36
The only economy that you can control is
00:14:39
yours. Now, here's the question.
00:14:43
Are you working?
00:14:45
Most cases, the answer is yes. The
00:14:48
average person will work 90,000 hours
00:14:50
over their lifetime. So, if you are a
00:14:52
dual income household, you're going to
00:14:54
work somewhere between 90 to 200,000
00:14:58
hours, the two of you, over your
00:15:00
lifetime. You're going to actually make
00:15:03
millions of dollars over your lifetime.
00:15:06
The question is with your own economy,
00:15:08
are you going to keep any of the money?
00:15:12
And the sad thing for many people is
00:15:14
that they're not. I I say most people
00:15:17
have what I call a no plan. Money comes
00:15:19
in, money goes out. And they say, "Well,
00:15:23
I don't know where the money all went."
00:15:24
And I go, "That's called a no plan." A
00:15:27
person who's an automatic millionaire,
00:15:29
the moment money comes in, they have a
00:15:30
plan for exactly where it's going to go.
00:15:33
And it starts with paying themselves
00:15:35
first.
00:15:36
automatically.
00:15:37
>> A lot of people listen to this and if I
00:15:39
go back if I go back just over 10 years
00:15:41
in my life, I would have been sat
00:15:43
listening to this conversation in ÂŁ7,000
00:15:46
of debt. And I would have thought, God,
00:15:48
like I'm becoming a millionaire, that's
00:15:49
a that's a million miles away, no pun
00:15:52
intended. I to become a millionaire, I'm
00:15:54
going to have to earn so much more
00:15:56
money. And at the time, I was working in
00:15:58
call centers. It it would have just felt
00:16:00
so far away. And I say, you know, people
00:16:03
are struggling to feed their children,
00:16:04
let alone become a millionaire.
00:16:07
Is it far away for the average person?
00:16:10
>> It's far away if you don't know the
00:16:11
strategy. There's a strategy to getting
00:16:13
out of debt. There's a strategy to
00:16:15
building wealth. There's a system.
00:16:17
>> How much of it is just earning more
00:16:19
money? Because when I have these
00:16:20
conversations on my show, I think the
00:16:23
surprisingly untouched territory is we
00:16:26
don't teach people how to become more
00:16:29
valuable so that they can earn more
00:16:31
money. A lot of it's about like index
00:16:32
funds or savings, whatever. But how much
00:16:34
of it is just like I need to get higher
00:16:38
valued skills in the market?
00:16:41
>> We know for a fact that making more
00:16:43
money doesn't make you rich. So, so
00:16:45
people can go, as I told you earlier,
00:16:46
like from $100,000. They can go from
00:16:48
50,000 to 100,000 and still be broke.
00:16:51
They can go from a h 100,000 to 200,000
00:16:53
a year and still be broke. They can go
00:16:54
from 200,000 to 300,000 and still be
00:16:56
broke. In the US, when you take
00:16:59
households that make $150,000 a year,
00:17:02
one out of three of them are still
00:17:03
broke. When you peel back the curtain
00:17:06
and you ask why is that? Well, we know
00:17:08
things cost more, but we also know
00:17:10
there's massive lifestyle creep, right?
00:17:13
you get you get around other people who
00:17:14
are making more money and then you spend
00:17:16
more money. And the reality is these
00:17:19
phones are designed to get you to spend
00:17:21
everything, right? Today with the
00:17:23
algorithms, there's better technology
00:17:25
today than there's ever been to get you
00:17:26
to spend more money. And nobody wants
00:17:29
you to spend money once. They want you
00:17:30
to spend money for a lifetime, right?
00:17:32
It's a lifetime value of a customer. So
00:17:34
there's a battle for our income. And
00:17:38
everyone wants a piece of it. It starts
00:17:40
with the government. like you go to work
00:17:42
and you go to work at 9ine and you
00:17:44
actually work from nine o'clock to 12
00:17:47
for taxes. Now, this is an important
00:17:49
lesson actually. The government doesn't
00:17:52
ask you to budget to pay taxes. They
00:17:56
take your taxes from you automatically.
00:17:58
They take social security from you
00:18:00
automatically. They're they take the
00:18:02
money from you automatically because
00:18:03
they know you won't have anything to
00:18:06
give if they don't take it from you.
00:18:08
Then people work from 12 to about 3:00
00:18:10
for housing and food and then from 3:00
00:18:13
to 5:00 for all the rest all the rest of
00:18:16
things.
00:18:18
The people who build wealth in America
00:18:20
and really all over the world, they do
00:18:22
something different. They keep the first
00:18:24
hour a day of their income.
00:18:26
>> What do you mean by that? So what that
00:18:27
means is whatever you earn, you could be
00:18:30
making minimum wage, you could be making
00:18:32
$20 an hour, $30 an hour, $40 an hour.
00:18:35
Whatever you earn, the first hour day of
00:18:38
your income has to go to you. You're the
00:18:41
first person who gets paid.
00:18:42
>> And you mean you have to save it, invest
00:18:44
it.
00:18:44
>> You have to invest it. So how do you
00:18:47
invest the first hour of your day
00:18:50
without paying taxes? The answer is you
00:18:53
pay yourself first using a 401k plan.
00:18:56
So, if you have a job with a retirement
00:18:58
account, 401k plan, you sign up and you
00:19:01
use that plan. Now, I can't just stop
00:19:04
right there, right? Because because it
00:19:05
sounds so simple, like, okay, I'll use
00:19:07
my plan. No, you have to know the
00:19:10
formula to using your plan to be rich.
00:19:12
We know after 40 years now exactly what
00:19:16
you need to do if you want to be a
00:19:17
millionaire. I can tell you how to
00:19:18
become a millionaire starting in your
00:19:20
20s so that you're done by the time
00:19:22
you're in your mid-50s. You save a
00:19:25
little one hour of your income is 12 and
00:19:26
a.5% of your gross revenue. I went on
00:19:29
online today to look at what's the
00:19:31
latest statistics with 401k
00:19:33
millionaires. The new stats that just
00:19:35
came out from Fidelity. There are
00:19:37
654,000
00:19:40
people in Fidelity 401k plans that are
00:19:42
now millionaires.
00:19:43
>> What is a 401k?
00:19:45
>> Okay,
00:19:45
>> because you know we've got a lot of
00:19:46
global listeners. There's different
00:19:48
types of 401k in every country. So in
00:19:51
the US, a 401k plan is a retirement
00:19:53
account. It is a retirement account that
00:19:55
the company has set up, right? And it
00:19:58
allows you to put money away tax
00:20:01
deductible. They call it pre-tax. In
00:20:04
most countries, you have a deductible
00:20:06
retirement account, but it depends on
00:20:08
the country, too, right? Like in Canada,
00:20:10
it's a different type of plan than it is
00:20:12
in Australia, than it is in Italy, than
00:20:14
it is here in the UK. Almost every
00:20:16
country though has some form of
00:20:18
retirement account and has the ability
00:20:21
to put money away automatically. Here's
00:20:24
the problem, and I'll use the US
00:20:27
specifically because it's where I do
00:20:28
most of my work in the US. Those who
00:20:32
have a 401k plan,
00:20:35
the ones that are millionaires, what
00:20:36
they did, here's the formula, the exact
00:20:38
formula. They saved 14% of their gross
00:20:41
income and their employer had a small
00:20:44
match on top of that. And then how they
00:20:47
invested the money is key because it's
00:20:49
not enough to just put money in these
00:20:51
401k plans. You have to be invested for
00:20:53
growth. And growth means stocks, right?
00:20:57
So you'd have to have and and the actual
00:21:00
specific allocation in these 401k
00:21:02
millionaires I just talked about was
00:21:04
about 70% stock and 30% bonds.
00:21:08
Okay. Now, what are people doing that
00:21:11
aren't achieving this? Well, the average
00:21:12
American saving maybe 3 or 4%. Maybe 5%
00:21:17
if they have a 401k plan. People who
00:21:20
don't have 401k plans in many cases
00:21:21
aren't even doing this. They can they
00:21:23
can open up an IRA account, but in most
00:21:25
cases, they're not doing that. So, the
00:21:27
whole secret is
00:21:30
not budgeting, not using discipline,
00:21:32
having the money move right from your
00:21:35
paycheck. paycheck gets deposited
00:21:37
automatically and then it moves the day
00:21:40
it hits your bank account automatically
00:21:43
first for retirement. Then later we'll
00:21:45
talk about building a security account,
00:21:47
building a dream account. The key is
00:21:50
that the money moves automatically.
00:21:54
So in the United States now there's by
00:21:56
the way 24 million millionaires now. So
00:21:58
we've seen an increase of 8 million
00:22:00
millionaires to 24 million millionaires
00:22:03
in the US in just 20 years.
00:22:05
How did they do that? There's two
00:22:08
primary escalators to wealth. That is
00:22:11
stocks and real estate. And if you're
00:22:14
not in stocks and you're not in real
00:22:16
estate, you are being left behind.
00:22:19
>> When you say real estate, does that mean
00:22:21
having a mortgage and owning a h home?
00:22:24
>> It's owning a home or owning REITs?
00:22:27
>> REITs.
00:22:28
>> REITs. Real estate equity investment
00:22:29
trusts. So, that's another way to buy
00:22:31
real estate without actually having to
00:22:33
own the home, but you don't get the same
00:22:34
level of returns.
00:22:36
>> I mean, this is um this is one of the
00:22:37
hot topics of conversation we've had on
00:22:39
this show several times is many of my
00:22:41
guests that are sort of financial
00:22:43
advisers say that owning a home is a bad
00:22:46
investment. I think from what I
00:22:48
understood from the research and from
00:22:49
reading your books that you feel
00:22:50
differently about that.
00:22:52
>> Yeah. I mean I I couldn't feel more
00:22:55
differently when we look at where is
00:22:57
wealth created in the United States and
00:22:59
also abroad. It's in two places. It's in
00:23:03
home equity and it's in the stock
00:23:05
market. So when you look at housing and
00:23:08
you take someone who owns a home and
00:23:10
we'll talk about I know it's hard to buy
00:23:11
homes right now but when you look at
00:23:14
people who own a home versus people who
00:23:16
rent homeowners in America follow this
00:23:19
for one second. Homeowners in America
00:23:21
are worth 40 times more than renters. So
00:23:26
the average homeowner in America today
00:23:29
is worth over $400,000.
00:23:32
>> But this doesn't establish causation.
00:23:34
I.e. that doesn't mean that buying a
00:23:35
home make made them rich, right?
00:23:37
>> It actually does. And I'm going to go
00:23:39
through that here. So the average renter
00:23:41
is worth $10,000,
00:23:43
right? So why why does buying a home
00:23:46
build wealth? and how much wealth in the
00:23:48
United States is now in home equity.
00:23:50
Wall Street Journal just ran an article
00:23:52
on this came out two days ago. There's
00:23:54
$34 trillion now in home equity in
00:23:59
America. This number has gone up 90%
00:24:02
since before co
00:24:05
the other money is in retirement
00:24:07
accounts which is 60 70% in stocks.
00:24:11
There's $45 trillion now in retirement
00:24:15
accounts. So those two things alone
00:24:17
equal $80 trillion dollar, right? Like
00:24:20
when you want to go like where are the
00:24:23
breadcrumbs? Where is wealth being
00:24:24
created? It's right in front of us. Now
00:24:28
the problem that we have in the United
00:24:30
States, but also look, we're here in
00:24:31
London right now. Problem we have in so
00:24:33
many cities is that real estate keeps
00:24:35
going higher and higher and higher and
00:24:38
people's incomes are not keeping pace
00:24:41
with the cost of buying a home. So, when
00:24:44
someone comes on a show like this and
00:24:46
says, "Look, you don't have to buy a
00:24:47
home. It's cost more to have a house
00:24:50
than rent. You, you know, I I watched
00:24:52
one of the shows. I won't say who it
00:24:53
was. It doesn't matter. They all say the
00:24:55
same thing. Don't buy a house. You'll be
00:24:58
trapped. You'll have to pay you'll have
00:25:00
to pay real estate taxes and you'll have
00:25:02
to pay insurance and things break." They
00:25:06
go through all these expenses
00:25:08
and it it makes it sound like, "Oh,
00:25:10
yeah. If I rent it'll be cheaper." No.
00:25:13
Who who do you think pays these expenses
00:25:15
when you rent?
00:25:18
You do. The landlord passes the cost of
00:25:21
these expenses on to the renter
00:25:25
ultimately. Why do they do this? Because
00:25:27
people who buy real estate buy it for an
00:25:30
investment. They buy it for an
00:25:32
investment. They're not they're not
00:25:34
subsidizing these costs. So, it's a hard
00:25:37
thing to hear and especially when you're
00:25:39
young. Like I have a a son who's 22.
00:25:41
He's in Chicago. He's going to move to
00:25:44
New York City. It'll be extremely hard
00:25:47
for him to buy a place in New York when
00:25:48
he starts working right away. Just will
00:25:50
be probably won't for two or three
00:25:52
years. A lot of young people when they
00:25:54
move to a major city, they can't afford
00:25:56
to buy right away. When I came out of
00:25:58
college, like you, I was in credit card
00:26:00
debt. I had $12,000 in credit card debt.
00:26:03
I remember opening up my bills and
00:26:05
having the room spin and thinking, I'm
00:26:08
never get out of credit card debt. how
00:26:09
am I going to buy a house? But I did.
00:26:12
And in fact, I didn't buy a home when I
00:26:15
was young by myself. I bought a home
00:26:17
with a best friend. So, how did I get my
00:26:20
first house? First house we bought was a
00:26:21
quarter of a million dollars. We put 10%
00:26:24
down and my best friend and I, Andrew,
00:26:27
we split that down payment. So, we each
00:26:28
put $12,500 down. This is how we scraped
00:26:31
it together. The house was a complete
00:26:33
fixer upper and we didn't have enough
00:26:36
money to make the mortgage payments. So,
00:26:37
we rented out bedrooms and we had
00:26:39
friends rent bedrooms and that helped us
00:26:41
cover our mortgage. We scraped it
00:26:44
together and that's what a lot of people
00:26:46
do when you're young. But if you don't
00:26:50
get in the game of home ownership and
00:26:52
you rent in your 20s and you rent in
00:26:54
your 30s, you're going to turn around in
00:26:56
your 40s and having not been built any
00:26:58
net worth. When I wrote the automatic
00:27:01
millionaire 20 years ago, two things
00:27:03
have happened since then.
00:27:06
The stock market has gone up in 20 years
00:27:10
600%.
00:27:12
>> Okay? So, if you had a $100,000, just
00:27:16
that is gone to $600,000.
00:27:19
If you bought a house, the house has
00:27:21
gone up 400%.
00:27:24
So, when you read this book with all
00:27:26
these, there's a a whole chapter of
00:27:27
updated success stories. There are a lot
00:27:30
of ordinary people that started saving
00:27:32
5, 10, 15, $20 a day, bought a starter
00:27:35
house, and today they're millionaires.
00:27:38
>> So, am I not better off renting and
00:27:42
investing in the stock market
00:27:45
versus buying a house? Because obviously
00:27:48
when I when I when I buy a house, I'm
00:27:50
paying a premium on the house so that I
00:27:52
can get a mortgage. I want to bust this
00:27:54
myth because what happens is people come
00:27:56
on they go the stock look I can tell you
00:27:58
right now the stock market over the last
00:28:00
20 years has averaged over 10% annually
00:28:02
people go the returns are better in the
00:28:04
stock market than the real estate yeah
00:28:06
but that's not applesto apple comparison
00:28:09
why
00:28:11
you buy a piece of real estate when you
00:28:13
buy a home people don't typically pay
00:28:16
cash for their first house they put down
00:28:19
20% and they borrow the other 80%. So
00:28:22
you take like an example of a take a
00:28:25
$200,000 home. $200,000 home you put 40
00:28:28
grand in. Home goes from $200,000 to
00:28:31
400,000 in 10 years. This has happened
00:28:34
to so many people in the last five years
00:28:36
since COVID. There are markets all over
00:28:39
the US where housing prices have gone up
00:28:41
100 to 200%. So a person buys a $200,000
00:28:44
home, they borrowed 80%. It's doubled.
00:28:48
So they've made 200,000 in profit. They
00:28:52
didn't put in 200,000, they put in 40.
00:28:54
So, they got a five times return on
00:28:56
their down payment. They go to sell
00:28:58
their house.
00:29:00
They don't pay taxes on the gain because
00:29:03
when you own a home, at least in the
00:29:04
United States, you own a home for over
00:29:06
two years. If you're single, you get
00:29:08
$250,000 in taxfree gains. If you're
00:29:11
married, you get over half a million
00:29:12
dollars in taxree gains. You get tax
00:29:14
deductions on the mortgages. So, what
00:29:18
happens is people come here and they go,
00:29:19
"You know what? You shouldn't be you
00:29:21
shouldn't be tied down. You need to be
00:29:23
flexible when you're young. You don't
00:29:25
want to have the responsibility
00:29:28
and you should take the extra money and
00:29:30
you should put it in a mutual fund. And
00:29:32
you know what happens in the real world,
00:29:33
Stephen? People don't do that. They rent
00:29:36
an apartment that's nicer than what they
00:29:37
can afford and they spend all their
00:29:40
money and then they turn around in their
00:29:42
mid30s and they have no equity because
00:29:45
they haven't bought anything and they
00:29:47
also haven't saved money.
00:29:49
It is an absolute freaking myth that
00:29:53
people take this extra money that they
00:29:55
could have used to buy a house and
00:29:57
they're going to put it in the stock
00:29:59
market. They don't do that. And that's
00:30:01
why also, by the way, corporate America
00:30:05
got into the game of buying up real
00:30:07
estate all over America, houses, and
00:30:11
building apartments to rent to an entire
00:30:15
generation, hoping these people never
00:30:19
buy
00:30:21
this. Like 10 days ago, Trump came out
00:30:23
and basically said he wants the
00:30:25
institutions out of buying up all the
00:30:27
homes in America. Why does he want to do
00:30:29
that? because he because he recognizes
00:30:33
how serious of a problem it is to have a
00:30:36
generation of Americans who are renters.
00:30:40
I'm telling you, when you look at
00:30:41
average Americans, average, I'm talking
00:30:43
about ordinary Americans. When you look
00:30:44
at where their wealth is, it's in home
00:30:46
equity and it's in the stock market. And
00:30:48
this is the last thing I'll say,
00:30:51
generational wealth is created for
00:30:55
better or worse through home equity. So
00:30:58
when you look at why you know you asked
00:31:00
the question about causation
00:31:03
if a family doesn't buy a home the
00:31:06
likelihood the next generation can buy a
00:31:08
home is very low because it's this when
00:31:12
someone dies
00:31:14
the money that is in the house that home
00:31:17
equity is often what transfer transfers
00:31:20
to the next generation helps the next
00:31:22
generation buy a house. I was looking at
00:31:24
some stats here because I want to what I
00:31:26
want I wish I could sit
00:31:28
>> sit down all of the guests that have
00:31:29
been on my show that have had a
00:31:30
difference of opinion and have said that
00:31:32
buying a house is a bad
00:31:33
>> it could be a really interesting
00:31:34
conversation. Right.
00:31:35
>> It would be a really interesting
00:31:36
conversation. What I've done as an
00:31:38
alternative to that approach is I've
00:31:39
pulled up what they've said
00:31:40
>> and I'm going to give you some of the
00:31:41
things they've said just so so you can
00:31:43
rebuttle them um and have your say on
00:31:45
them. One of the things that they often
00:31:47
say is that long-term real
00:31:49
inflationadjusted home price
00:31:51
appreciation in the US is about 1%
00:31:53
annually and one of my guests cited
00:31:56
Robert Schiller as the evidence of that.
00:31:58
After maintenance um which usually
00:32:00
equals 1 to 2% um property taxes which
00:32:03
equals about 1% insurance and
00:32:04
transaction costs the net real returns
00:32:06
approach roughly zero on average. So
00:32:10
when you say housing is a great
00:32:11
investment, are you referencing the
00:32:12
gross appreciation which is the the the
00:32:14
total appreciation or the net returns
00:32:16
after taxes, maintenance, insurance, and
00:32:18
selling costs?
00:32:20
>> So when you dig into these kind of
00:32:21
numbers like this,
00:32:23
what they are is they're numbers, but
00:32:25
they're not real world, right? And so
00:32:27
like when you when you talk to someone
00:32:28
who owns a home today and they've owned
00:32:30
it for 20 years and you ask them how
00:32:33
much of your net worth is now in the
00:32:36
equity in your house
00:32:38
over 50% of their net worth is in their
00:32:40
house. You will see people on your
00:32:43
YouTube channel that literally if you
00:32:45
read the comments and I'm sure you do. I
00:32:46
do
00:32:47
>> where people say it's not true. There
00:32:49
was I read a comment yesterday on your
00:32:51
YouTube page. All I know is I bought a
00:32:55
house and it's gone up in value three
00:32:57
and a half times and the rent when I
00:33:00
bought the house was $1,200 and the rent
00:33:02
today to buy that if I had that house if
00:33:05
I was renting it would be $4,000.
00:33:07
So the thing is you have to understand
00:33:10
is that rents always go up, Stephen.
00:33:13
Like I lived in New York City for 18
00:33:16
years.
00:33:18
When I moved to New York City in 2001,
00:33:22
a really nice apartment, a nice
00:33:25
apartment was like $6,000 a month. When
00:33:28
I left New York, that same apartment was
00:33:32
$25,000 a month. Follow the follow the
00:33:35
insanity of that math. Now, that
00:33:38
apartment went from being $2 million
00:33:41
apartment to a $5 million apartment. So,
00:33:44
I could have been renting it, but in my
00:33:46
case, I owned it and it went up in value
00:33:49
$3 million.
00:33:50
So, I have friends who have been renting
00:33:52
in New York for 20 years. They have
00:33:54
built no net worth. I have no vest
00:33:56
interest in this conversation. Meaning,
00:33:58
I don't sell real estate. I'm not a real
00:34:01
estate agent. I'm not selling real
00:34:03
estate. I've just seen in the real world
00:34:06
how people have built wealth. the the
00:34:08
the McIntyres in this book, the
00:34:10
automatic millionaire, when they came
00:34:12
into my office and they were worth $1.8
00:34:14
million and he was 52 and able to retire
00:34:18
having earned an average of $40,000 a
00:34:21
year.
00:34:22
All their money wasn't in the stock
00:34:24
market. They had bought a home in San
00:34:26
Leandro, California, what he what they
00:34:28
called a middleclass neighborhood. Their
00:34:31
home at the time was worth about
00:34:32
$300,000.
00:34:35
They had paid their mortgage off and
00:34:37
they had bought one more house on their
00:34:38
street. They rented the first house.
00:34:41
They bought a second house on their
00:34:42
street. They paid that mortgage off. And
00:34:45
so they owned two homes free and clear.
00:34:47
One house they got income from. One
00:34:49
house they lived in with no debt. And
00:34:51
then they had saved money in their 401k
00:34:53
plan. So, if I was a young person or not
00:34:57
even a young person, a middle-aged and
00:34:58
older person who took my down payment
00:35:01
that I was going to pay into the house,
00:35:02
if let's say it was say my down payment
00:35:04
was $20,000 and I put that into the S&P
00:35:07
500 instead over the long run, won't
00:35:10
that grow larger than the total home
00:35:12
equity potentially?
00:35:14
>> Here's why the index fund theory doesn't
00:35:17
work.
00:35:19
You can't live inside an index fund.
00:35:23
You can't live inside a mutual fund. You
00:35:25
have to live somewhere as long as you're
00:35:27
alive. Here's what people should do.
00:35:31
Take a look at what you're paying in
00:35:32
rent.
00:35:34
Now, ask yourself a question. If I'm
00:35:37
paying 5,000 a month in rent, which lots
00:35:41
of people are, right? Do you know people
00:35:43
paying 5,000 a month in rent?
00:35:44
>> Yes.
00:35:44
>> Okay. So, they're paying 60,000 a year.
00:35:46
Let's take that number.
00:35:47
>> Yeah.
00:35:48
>> So, over 10 years, they're going to
00:35:49
spend $600,000 in rent.
00:35:52
Yeah.
00:35:53
>> If the rent doesn't go up,
00:35:55
>> Yeah.
00:35:55
>> in 20 years, they're going to spend 1.2
00:35:58
million in rent. If the rent doesn't go
00:36:00
up, in 30 years, they will have spent $2
00:36:04
million in rent if the rent doesn't go
00:36:06
up. But the rent does go up. So, the
00:36:09
question you just have to ask yourself
00:36:10
is, am I going to take all this money
00:36:12
that I'm spending on rent and never
00:36:14
build anything?
00:36:16
And if you really believe that renting
00:36:19
is better than owning, then you should
00:36:21
still consider the idea of buying
00:36:23
something than that somebody else rents.
00:36:25
Cuz I promise you, somebody's getting
00:36:27
rich in the transaction. If you're the
00:36:30
renter, you're not the one who's getting
00:36:31
rich in the transaction of renting. It
00:36:34
is a great short-term solution renting.
00:36:37
It is not a great term long-term wealth
00:36:40
building solution. The other thing that
00:36:41
people often talk about and you you
00:36:43
cited earlier is the mobility that
00:36:45
renting gives you.
00:36:46
>> Yeah.
00:36:48
>> Your son was here a second ago. He's 16
00:36:50
years old. Yeah. Soon he'll be
00:36:52
>> at the age where he's got his own place
00:36:54
and he's thinking about different career
00:36:55
opportunities and oh my god AI is this
00:36:57
big thing. So he might want to go to San
00:36:58
Francisco. Then he might want to go live
00:37:00
in Florence and wherever else. if he's
00:37:02
bought a place, there is a interesting
00:37:05
sort of psychological but also financial
00:37:07
component to the fact that it makes it
00:37:09
harder for you to move with the
00:37:10
opportunity of life. And if we are if if
00:37:12
what people say about the future of work
00:37:14
is true, that we're going to have many
00:37:15
more careers in our lives than we did in
00:37:17
the past, one might assume that we're
00:37:19
also going to be more mobile. And so, is
00:37:22
there an argument to say that buying a
00:37:24
house might hurt my prof professional
00:37:27
opportunities, my ability to pursue
00:37:29
professional opportunities? The answer
00:37:31
is possibly, right? But here's the thing
00:37:33
about rent. Rent's, interestingly
00:37:36
enough, a major obligation, right?
00:37:39
Usually, when you go and you do a lease,
00:37:42
you lock yourself into a one-year lease.
00:37:45
Sometimes you lock yourself into a
00:37:46
two-year lease.
00:37:48
When you buy something, and this is
00:37:51
assuming that you have the money to buy
00:37:53
something, Stephen,
00:37:55
look up because you've got all the data
00:37:57
at your fingertips here. Look what the
00:37:58
average length of time it takes to sell
00:38:00
a home in the United States. Just just
00:38:02
Google that right now because what I
00:38:05
will tell you is in certain markets you
00:38:07
can put your home on the market and you
00:38:08
can sell it in less than 90 days. Now
00:38:11
some markets you can sell your home in
00:38:12
less than 30 days. In many cases
00:38:15
you actually have more flexibility when
00:38:17
you own something than when you rent.
00:38:19
And that's if you want to sell it. It
00:38:21
says the average time from listing to
00:38:24
sale is about 47 to 62 days from listing
00:38:29
to closing in 2025, including 16 days on
00:38:32
the market and 30 to 45 days to close.
00:38:35
>> That's called less than 2 months.
00:38:37
>> Even in hot markets, the process from
00:38:39
putting a house on the market to legally
00:38:40
selling it can take 1.5 to 3 months.
00:38:43
Meaning home equity isn't a quickly
00:38:45
accessible investment.
00:38:47
>> Yeah. But do you think that's pretty
00:38:48
quick? 90 days.
00:38:49
>> No, it is. It is quick. I mean it takes
00:38:50
takes you that amount of time to get out
00:38:51
of a lease.
00:38:52
>> Exactly. So now so so here you've got a
00:38:54
piece of property that you can turn
00:38:54
around and sell in less than 90 days.
00:38:56
Now this is the US. You can't do that.
00:38:57
Like for inance I live in Italy. That
00:38:58
could be very hard to do that in Italy.
00:39:00
But in the US you've got something
00:39:02
that's in a good market. It's liquid.
00:39:04
The other thing is you can rent it,
00:39:07
right? You're you're actually not
00:39:09
trapped. If if you start to build equity
00:39:11
in your home and you pay your mortgage
00:39:12
down slightly, next thing you know
00:39:14
you're able to rent that property and
00:39:15
you can still move. Today, people are
00:39:18
taking their homes and they're Airbnbing
00:39:19
them. What I really want for people is
00:39:22
the chance to be financially free.
00:39:25
There's also an age at which it doesn't
00:39:26
matter if you own. You know, once you
00:39:28
start to get older and you've built
00:39:29
financial security, you get in your 50s
00:39:31
or your 60s or 70s and you just want to
00:39:33
travel and you don't want to own
00:39:34
anything. That's a different stage of
00:39:36
life. So, the question just becomes
00:39:39
the money that you make. I go back to
00:39:41
the 90,000 hour comment. When you make n
00:39:44
when you work 90,000 hours over your
00:39:46
lifetime,
00:39:48
what's your plan to keep some of this
00:39:50
money?
00:39:52
You have to have a pay yourself first
00:39:54
plan. That has to be your number one
00:39:56
priority is that when you earn money,
00:39:58
the first person who you're going to pay
00:40:00
is you. If you say, you know what, I
00:40:02
watched Stephen and I saw David and I've
00:40:04
seen a bunch of other people on his show
00:40:06
and I'm not going to buy a house. Okay,
00:40:09
then
00:40:11
you have to pay yourself first more. Now
00:40:14
I go around the world for the last 30
00:40:17
years starting with Oprah with the
00:40:19
automatic millionaire. I launched this
00:40:20
book on Oprah and I talked about you
00:40:22
have to save 1 hour a day of your income
00:40:24
and people will get on these social
00:40:26
media boards and be like I can't save
00:40:28
10% of my income.
00:40:31
They'll I can't live off 90% of my
00:40:33
income. It's not possible. I have to
00:40:34
spend all of it. Right? Well, then that
00:40:38
person who's renting and not buying a
00:40:41
house, which is for savings, is clearly
00:40:44
never going to save. So, the other thing
00:40:46
about buying a house is it does require
00:40:49
force savings because when you use have
00:40:51
a mortgage payment, part of that
00:40:52
mortgage payment is paying down your
00:40:53
debt. And I teach you how to use a
00:40:55
bi-weekly mortgage payment plan. So, you
00:40:57
take a 30-year mortgage and you pay it
00:40:59
off five years earlier. And doing that
00:41:01
can save you, depends on the size of the
00:41:02
home, can save you $50 to $100,000 just
00:41:05
in interest payments. You talk about
00:41:06
having a savings mindset.
00:41:10
What is a savings mindset and how does
00:41:12
one go about saving if they are one of
00:41:14
those people that says, "Listen, I'm
00:41:15
barely getting by as it is, David."
00:41:17
>> Yeah.
00:41:17
>> How how the hell am I going to save
00:41:19
money when I'm actually increasingly
00:41:21
getting into more debt right now?
00:41:24
>> So, the first thing is you have to find
00:41:25
your money, right? So, what I what I
00:41:27
find, Steve, is when I talk to people,
00:41:29
most people don't know where their money
00:41:30
goes. Literally, they don't know.
00:41:32
They're like, I'm like, "How much money
00:41:33
you spend a month?" Well, I'm not really
00:41:34
sure. How much money you spend a year?
00:41:36
Well, I'm not really sure. You need to
00:41:38
be sure. So, you should be doing
00:41:40
something to track where your money
00:41:41
goes. Now, you can be sophisticated. You
00:41:43
can use apps. It will track where your
00:41:45
money goes. You can also take out a pad
00:41:48
of paper and I give people a 7-day
00:41:50
financial challenge for seven days. Just
00:41:53
bring a little pad of paper with you and
00:41:55
write down every single day where your
00:41:56
money goes. Now, why do I want people to
00:41:59
do that? Because most people today are
00:42:02
spending money unconsciously. I go back
00:42:04
to these phones. The fact that I don't I
00:42:07
don't even have to carry a wallet
00:42:08
anymore, right? It's just click click
00:42:09
click and pay for things. We've lost
00:42:11
touch with spending money. So, when
00:42:14
people start to see what they're really
00:42:15
spending, it's a wakeup call. The
00:42:18
biggest thing I've been sharing lately
00:42:19
is what does it take to blow $10,000 a
00:42:23
year per day in terms of spending? How
00:42:26
much money do you need to spend a day to
00:42:27
blow $10,000? Now, show us the per here.
00:42:31
Now, we happen to have these are we have
00:42:32
pounds today, right? So, um so I I'm
00:42:36
holding Stephen right now. I'm holding
00:42:38
what is known as a brick.
00:42:41
So, I don't know if your staff told you
00:42:42
how much I'm holding here. You know how
00:42:44
much what you guess I'm holding?
00:42:46
>> It looks like maybe $5,000.
00:42:48
>> Okay. So, this is a life-changing amount
00:42:50
of money, Stephen. This This is $10,000
00:42:52
right here.
00:42:53
>> And what does it take to blow $10,000
00:42:57
in a year per day? How much money you
00:42:59
have to spend per day to go through
00:43:02
$10,000? I'll make it easy for you. The
00:43:05
the answer is $27.40
00:43:08
a day. $27.40 a day adds up equaling
00:43:14
$10,000 over the year. Now, before we go
00:43:16
through where do you where do you spend
00:43:18
this money? How do you waste $27.40 a
00:43:21
day, the question becomes, if you didn't
00:43:24
waste $27.40 40 cents a day and you were
00:43:27
able to get yourself to invest $10,000 a
00:43:30
year, what could this be worth over
00:43:35
time? And the answer is in 40 years if
00:43:39
this was in the S&P 500 fund which you
00:43:42
quoted earlier and you earn 10% annually
00:43:44
with reinvested dividends
00:43:47
that stack there would grow to 4 million
00:43:50
four over $4,400,000
00:43:53
if you invested $27.40
00:43:56
a day.
00:43:57
>> Pass me this big brick.
00:43:58
>> Yeah.
00:43:58
>> So if I save
00:44:00
half of this a day then in did you say
00:44:03
40 years?
00:44:04
>> In 40 years. So, let me give you the
00:44:06
math on a couple different ways of doing
00:44:07
this. Okay, so what would happen if you
00:44:09
invested roughly half of this a day? The
00:44:12
number I use is $27.40 a day. It's the
00:44:15
magic number. That equals $10,000 a
00:44:18
year. If you invested that a day for 40
00:44:21
years, you'd have over $4,424,000.
00:44:27
>> If I invest $27 a day, in 40 years, I'll
00:44:29
have $4 million.
00:44:31
>> Over $4 million. Let's go through the
00:44:34
yeah butts now because people are going
00:44:36
to hear this. Some people are going to
00:44:37
go, "Wait, what?" And then we'll talk
00:44:39
about where you find $27.40 a day.
00:44:43
Yeah, but $4,400,000
00:44:47
won't be worth a lot of money in 40
00:44:49
years.
00:44:50
With inflation, it won't be worth that
00:44:52
much. It won't have the same purchasing
00:44:53
power. My answer would be it's worth a
00:44:56
whole lot more than zero. Right? If
00:44:58
you're not saving any money, if you
00:44:59
can't save $27.40 40 cents a day, you
00:45:03
won't have $4,400,000.
00:45:05
Yeah, but with taxes, you know, it won't
00:45:08
grow that much. Well, it could if it was
00:45:10
in a retirement account. You wouldn't be
00:45:12
paying taxes on the money. Yeah, but
00:45:14
it's not possible to earn 10% on my
00:45:17
money. Well, the stock market for over a
00:45:20
hundred years has averaged over 10%
00:45:22
annually with reinvested dividends.
00:45:25
Yeah, but the stock market's risky and
00:45:27
complicated. Well, no, it's not. If you
00:45:28
bought an index fund, it's actually not
00:45:30
that risky and complicated.
00:45:33
Yeah, but I don't know. I don't know how
00:45:34
to get started. Well, you could start
00:45:36
really easily. You could open up a
00:45:38
brokerage account. You could go to a
00:45:40
Charles Schwab, Fidelity. I mean, I'm
00:45:43
literally going to go through them all.
00:45:44
Vanguard, Robin Hood, Coinbase, Acorns,
00:45:50
and in less than 10 minutes, you could
00:45:52
open up an account and be saving. Pick a
00:45:55
dollar amount. $5 a day, $10 a day, $27
00:45:58
a day, and that could change your life.
00:46:01
Now, why is $10,000, Stephen, such an
00:46:03
important dollar amount? Here's what I
00:46:06
can tell you, having done this for 30
00:46:07
years.
00:46:09
This dollar amount right here, first of
00:46:12
all, this is
00:46:14
one in two Americans don't have $1,000
00:46:17
in a bank account right now. So, this is
00:46:19
10 times what one out of two Americans
00:46:21
have. But more importantly, $10,000.
00:46:24
When we do surveys
00:46:26
and we ask people, "How much money would
00:46:28
it take to totally change your life?"
00:46:30
The answer is not a million dollars. The
00:46:32
answer is not $100,000.
00:46:35
The answer is actually$10,000.
00:46:37
And the question is, why is it 10,000?
00:46:40
And the reason is is that's about what
00:46:42
the average person has in credit card
00:46:44
debt. And they feel like they're
00:46:46
drowning like you talked about earlier.
00:46:49
and they know that that could pay off
00:46:50
their credit card debt. Or they have a
00:46:53
job they don't like and they if you knew
00:46:57
that if they had $10,000
00:46:59
in a savings account, they'd quit that
00:47:01
job and they'd be free. They'd have to
00:47:03
go find another job
00:47:04
>> or start a business or something
00:47:05
>> or start a business or god forbid
00:47:08
they're in an abusive relationship and
00:47:09
they can't leave. But if they had
00:47:11
$10,000, they'd leave. So, you know, a
00:47:15
lot of people go, "David, you just make
00:47:16
this all too simple." And it's true. I
00:47:20
do because when it's simple, people take
00:47:22
action on it. So for years, I have
00:47:25
taught this concept called the latte
00:47:27
factor. A lot of people love me for it.
00:47:30
Now I have a lot of people hate me for
00:47:31
it. And I have taught that, you know, we
00:47:34
waste small amounts of money on little
00:47:36
thing. I had your staff bring me a nice
00:47:37
coffee. Um, when I started teaching the
00:47:40
latte factor, I would talk about the
00:47:42
idea that we waste five bucks a day on
00:47:45
coffee. And that if you don't believe
00:47:47
you can start saving and investing,
00:47:50
at least save $5 a day. Make your coffee
00:47:52
at home. And people would say, "But I
00:47:54
don't want to give up my coffee." Okay.
00:47:55
Well, then figure out another way to
00:47:57
save $5 a day. This iced coffee, I don't
00:48:00
know what it costs here in London. In
00:48:01
New York City, that coffee right there
00:48:04
is $9.50
00:48:06
plus a tip.
00:48:08
It's over 11 bucks. I know because I was
00:48:11
just in New York. So
00:48:14
today we we had a bunch of props here
00:48:15
and I said, "Well, let's try to show
00:48:17
like what what is $27.40." Like when I
00:48:20
go to my hotel later when I leave here,
00:48:23
a cocktail is going to be 30 bucks,
00:48:25
right? I was just in New York City
00:48:26
cocktail. I had a cocktail in my hotel
00:48:28
was $31.50.
00:48:31
Wine $50. Eating out. You go and have
00:48:33
lunch today, it's going to be $25. And
00:48:36
people say, 'Well, I have to eat.' And I
00:48:38
go, I know you do, but you could also
00:48:40
brown bag your lunch. It's what my
00:48:41
grandmother did. Now, her friends teased
00:48:44
her. But my grandmother was able to
00:48:46
retire to California. And her friends
00:48:49
all got stuck in Milwaukee, Wisconsin,
00:48:51
where it was cold because they couldn't
00:48:52
afford to retire the way she did.
00:48:54
>> How many people could
00:48:57
actually save $27 a day? Because if I go
00:49:00
back again, just over 10 years of my
00:49:01
life, I mean, there's no chance I could
00:49:03
save $27 in a day. There's just no
00:49:05
there's just no there's no way
00:49:07
>> if you go back to what age?
00:49:08
>> If I go back to between
00:49:11
like 18 19 years old roughly that period
00:49:15
of my life.
00:49:15
>> Yeah.
00:49:16
>> There was no way I could have save $27 a
00:49:18
day.
00:49:18
>> Here's really the question. Do you have
00:49:21
friends and do you think you have people
00:49:23
who work with you
00:49:25
who are making more than $50,000 a year
00:49:28
and they're not saving $27 a day?
00:49:31
They're not even saving $10 a day. This
00:49:33
is true. I actually did a bit of
00:49:34
research um on this and it says
00:49:37
approximately 40 to 50 million families,
00:49:40
if we just take the United States where
00:49:41
I think there's what 330 million people
00:49:42
roughly um approximately 40 to 50
00:49:45
million families in the US can
00:49:46
realistically save $27 a day. This
00:49:49
represents roughly the top 30 to 35% of
00:49:52
households. For everyone else, the
00:49:54
bottom 65 to 70%. Saving that amount
00:49:57
would require either extreme poverty
00:49:58
level budgeting or is a mathematical
00:50:00
impossibility. over 40 million people
00:50:03
they think can afford to save $27.50 a
00:50:05
day.
00:50:05
>> Yes. It's based based on income and
00:50:07
expenditure data from 2025 to 2026
00:50:10
approximately 40 to 50 million families
00:50:12
in the US can realistically save $27 a
00:50:15
day.
00:50:16
>> So for those 40 to 50 million people in
00:50:20
the United States that would be
00:50:22
lifechanging. Now are there people who
00:50:24
can't afford to say that? Absolutely. In
00:50:26
the United States I I was just in uh
00:50:28
Arizona. I just did a keynote speech. I
00:50:30
asked the audience,
00:50:32
this is when the government was shut
00:50:33
down. I said, "How many people do you
00:50:36
think in America are taking and
00:50:38
receiving SNAP checks?"
00:50:41
>> What's that?
00:50:43
>> Thank you. Because, by the way, most
00:50:44
Americans don't even know what a snap
00:50:46
check is. That's a check that the
00:50:48
government gives to people for food. And
00:50:50
the dollar amounts a little over $6 a
00:50:52
day. So, smart people in a room, by the
00:50:56
way, I didn't know the answer to this a
00:50:58
week prior either. The answer is about
00:51:00
41 and a half million Americans
00:51:04
get a snap check.
00:51:06
When I told the room that, the room
00:51:08
gasped. I said, "So when you under when
00:51:11
you hear that the government was shut
00:51:13
down for six weeks,
00:51:17
that was three pay cycles."
00:51:21
Well, the average American doesn't have
00:51:23
two weeks of expenses set aside.
00:51:27
I I mean, I don't think everybody fully
00:51:29
grasps the problem right now. Four out
00:51:31
of 10 Americans can't get their hands on
00:51:33
$1,000 in case of emergency purposes. If
00:51:35
you actually dig into the Federal
00:51:37
Reserve data, it's 37% of Americans
00:51:40
can't get their hands on $400 in case of
00:51:43
emergency purposes. So, there's a whole
00:51:45
section of America that's truly
00:51:47
struggling. Like, but there's a whole
00:51:49
lot of America
00:51:51
that is still struggling. They're living
00:51:54
paycheck to paycheck, but their money is
00:51:56
being taken from them all the time
00:52:00
because they don't have a plan for it.
00:52:02
For that bottom 60% of Americans that my
00:52:06
research says wouldn't be able to save
00:52:08
$27 a day. Um, the data reveals a
00:52:10
discretionary income cliff. Once you
00:52:12
drop below the top 40% of earners, the
00:52:14
money available after bills vanishes
00:52:16
rapidly. The top 20% which earn I think
00:52:18
$96,000
00:52:20
per household are in a surplus. The
00:52:22
middle 20% um have a $15,000 surplus uh
00:52:25
which the $27 a day takes 66% from. But
00:52:29
the bottom 40% often have a roughly
00:52:32
$2,000 surplus. So it's impossible for
00:52:34
them to get to the $10,000 for that
00:52:36
bottom 40%.
00:52:39
What's what's the advice for them?
00:52:41
>> Start with something. Okay. It's like we
00:52:44
took this 50 and we said cut it in half
00:52:46
25.
00:52:47
I would say can you save a dollar a day?
00:52:51
I have actually talked about this idea
00:52:55
really simple. Could you save $10 a day
00:52:57
for 100 days? So like if you're
00:52:59
listening to me and you happen to really
00:53:00
be struggling right now, my question
00:53:02
would be could you save $10 a day for
00:53:04
100 days? Why? Because it would get you
00:53:06
to your first $1,000 and you now have
00:53:09
more than 50% of Americans who don't
00:53:11
have savings. And I can't tell you how
00:53:14
many people have come back after a
00:53:15
hundred days and said, "Okay, I did it.
00:53:17
It wasn't easy." For some people, saving
00:53:19
$10 a day could be really really hard.
00:53:23
But
00:53:24
you're you're into fitness. You saw my
00:53:26
son who just came in here.
00:53:28
Fitness is built through daily action,
00:53:32
right? It's built through daily action.
00:53:34
Daily eating well, going to the gym,
00:53:38
doing certain things on a regular basis.
00:53:41
Savings, the same thing.
00:53:44
There's a company called Acorns. I
00:53:46
invested Acorns back in 2015. Acorns
00:53:49
came up with an app that helps you roll
00:53:52
your change up. So, if I go to Starbucks
00:53:54
and I spend $9.50 on a coffee,
00:53:58
you can round it up where the 50 cents
00:54:01
to 10 bucks is put into investments.
00:54:04
Just rounding up your change.
00:54:07
And people have saved tens of thousands
00:54:10
of dollars over the last 10 years by
00:54:12
just rounding up their change.
00:54:15
Every time I've tried to improve
00:54:16
something in my life, like my
00:54:17
businesses, my health, my relationships,
00:54:19
I've noticed that the biggest shifts
00:54:21
have come from being better informed.
00:54:23
And when it comes to our health, most of
00:54:24
us know very, very little. So, when our
00:54:26
team was approached about partnering
00:54:28
with function health, it felt very much
00:54:30
aligned. Their team has developed a way
00:54:32
of giving you a full 360 degree view of
00:54:34
your health, many of the things that are
00:54:35
going on in your body, in the form of
00:54:37
different tests. You do one blood draw
00:54:39
and it gives you access to over 160 lab
00:54:42
results. Hormones, heart health,
00:54:44
inflammation, stress, toxins, the whole
00:54:47
picture. I use it and so have many of my
00:54:49
team members.
00:54:49
>> You sign up and you schedule your tests
00:54:51
and once you're done, you get a little
00:54:52
report like the one I have here. I can
00:54:54
see my inrange results, my out of range
00:54:56
results, and there's a little AI
00:54:58
function, too. So, if I have any
00:54:59
questions about my out of range results,
00:55:01
I can just go in there and ask it any
00:55:03
question I want. And these tests are
00:55:05
backed by doctors and thousands of hours
00:55:06
of research. It's $365 for a yearly
00:55:09
membership. Go to
00:55:10
functionhealth.com/doac
00:55:13
and use the code DOAC25
00:55:15
for $25 off your membership.
00:55:18
I had a friend of mine contact me and I
00:55:20
I spoke to one of the previous financial
00:55:21
adviserss and educators that I'd spoken
00:55:23
to on the show about him. He told me he
00:55:26
was in deep financial debt. Probably
00:55:28
earns about ÂŁ50,000 or dollars a year,
00:55:31
but has got himself into real debt. And
00:55:32
I imagine a lot of my listeners are are
00:55:35
somewhat in debt, whether it's credit
00:55:36
card debts or loans or others. Do you
00:55:38
have any specific advice to people that
00:55:40
are currently straddled with debt?
00:55:42
>> Absolutely. Because it's one of the most
00:55:43
important things you need to know how to
00:55:44
get out of. Debt is like quicksand. Like
00:55:47
you know, you talked earlier about how
00:55:49
you were in debt and what that felt
00:55:50
like. When I came out of college and I
00:55:52
had $12,000 in credit card debt, it felt
00:55:54
like the greatest weight on my
00:55:56
shoulders. Like I was carrying like a 50
00:55:59
lb backpack. And how did I get out of
00:56:01
debt? How do you get out of debt? I will
00:56:03
give you the very simple formula to
00:56:05
getting out of debt. DolP. DolP stands
00:56:08
for done on last payment. If you said to
00:56:13
me, David, I've got five credit cards.
00:56:14
I'd say, "Okay, Stephen,
00:56:18
I'd take a piece of paper just like this
00:56:20
and I'd start listing your credit
00:56:22
cards." I'd go one, two, three, four,
00:56:26
five. And I'd list them all. Visa,
00:56:29
Mastercard,
00:56:30
and I'd list them. And then I want to
00:56:32
know, Steve, how much do you owe? So, I
00:56:35
put the dollar amount down. And what I
00:56:38
would do is I put the dollar amount down
00:56:40
on paper and I list it small
00:56:44
to large.
00:56:46
Then I want to know the interest rate.
00:56:50
Now, what people say is, "Oh, you should
00:56:52
take the highest interest rate and pay
00:56:54
it off first." But I wouldn't tell you
00:56:56
that, Stephen.
00:56:57
I'd tell you you take the smallest
00:56:59
credit card. I don't care what the
00:57:01
interest rate is.
00:57:02
>> The smallest amount.
00:57:03
>> Smallest amount. So maybe this card
00:57:05
right here is $500. And this card down
00:57:08
here is 3,000.
00:57:10
I'd have you make minimum payments on
00:57:13
every card
00:57:14
automatically. This is really important,
00:57:17
the automatic part. Have you go on I'd
00:57:19
literally go into your house. I'd open
00:57:20
up the I'd open up your iPad and I'd
00:57:22
have you make minimum payments online
00:57:25
automatically so that every card's paid
00:57:27
on time. Then I'd say, "Stephen, how
00:57:30
much extra money do you have?" Because I
00:57:31
want you to put it all towards the
00:57:32
smallest card. We're going to get that
00:57:34
small card paid off as fast as possible.
00:57:36
We're going to add all the extra money
00:57:38
to that small card. Minimum payments on
00:57:40
everything. Once that card's paid off,
00:57:43
we're going to go like this. You don't
00:57:45
have to close the account because we
00:57:46
don't want to lower your credit score,
00:57:47
but we're going to put that card over
00:57:48
here. never use it. Now, we're going to
00:57:50
go to the next next smallest card.
00:57:53
Some people call this the snowball
00:57:54
approach.
00:57:56
The reason I teach this system is it
00:57:59
reduces the amount of credit cards you
00:58:01
have as fast as possible.
00:58:04
And you see yourself make progress. It's
00:58:08
really important to see yourself make
00:58:10
progress when you're doing anything
00:58:11
financially.
00:58:13
Then I would attack the interest rates
00:58:15
because the interest rates aren't always
00:58:19
permanent. You can negotiate your rates
00:58:22
lower. You can move credit cards to
00:58:24
another card with a low interest rate.
00:58:27
Have to be very careful though when you
00:58:28
do that because they're waiting for you
00:58:29
to make a slip up and make a late
00:58:31
payment. And when they do, they'll jack
00:58:33
the credit card interest rates back up
00:58:34
again.
00:58:36
You can also call up your credit card
00:58:38
companies if you're really struggling
00:58:41
and tell them, "I'm struggling and I'd
00:58:43
like to know if you have a program in
00:58:45
place where I can stop the interest rate
00:58:48
and pay these cards off and more
00:58:51
accessible." Like this is basically what
00:58:52
the nonprofit credit card counseling
00:58:53
organizations do. But the credit card
00:58:55
companies often have programs too for
00:58:57
this. They'll tell you to stop using the
00:59:00
card. they'll actually make it so you
00:59:01
can't use the card anymore, but they'll
00:59:02
stop the interest rate. So, that
00:59:05
approach has helped so many people get
00:59:07
out of credit card debt.
00:59:10
Now, I just want to say something super
00:59:11
important because I've gone through
00:59:13
this.
00:59:15
When you go through the work of getting
00:59:17
out of credit card debt,
00:59:19
it's a huge victory.
00:59:23
Don't go out and celebrate
00:59:25
on the credit cards because I got myself
00:59:28
out of credit card debt in college,
00:59:30
junior year, and then I went out and
00:59:32
celebrated and got myself back into
00:59:33
credit card debt.
00:59:35
>> And people do this all the time. Usually
00:59:37
people get themselves in a hole at least
00:59:39
twice, sometimes three times.
00:59:42
Don't go back in a hole again. Uh I
00:59:44
didn't carry credit cards for 30 years.
00:59:46
I only carried a debit card and I had to
00:59:49
pay it off every month. Should these
00:59:52
people um who are in the bottom sort of
00:59:54
60% be thinking at all about how to make
00:59:57
more money, how to increase their
00:59:58
income?
01:00:00
>> Absolutely. And what are the like the
01:00:02
easiest ways to do that would that you'd
01:00:04
recommend just from your own experience
01:00:05
of you know being in the professional
01:00:07
world and
01:00:08
>> so my experience and I know that you
01:00:10
look you wrote this great book diary of
01:00:13
a CEO right anybody hasn't read your
01:00:15
book you have this great book what's the
01:00:16
best way to grow your income if you have
01:00:18
a job it's to be good at what you do
01:00:22
right you can have a job at minimum wage
01:00:26
let's pretend you work at McDonald's and
01:00:28
you have a job working minimum wage
01:00:30
McDonald's. The owner of McDonald's, the
01:00:33
guy who owns that franchise or the gal
01:00:35
that owns that franchise desperately
01:00:37
needs good employees. Who becomes a
01:00:40
manager that makes more money? The
01:00:42
person who works really well. Now, a lot
01:00:44
of people, I don't I don't know if I
01:00:46
want to work McDonald's. I'm just giving
01:00:47
it as an example. Anywhere you work, how
01:00:50
you grow your income is you are the best
01:00:54
at what you do. You show up early. You
01:00:57
have a game plan at work. You work late.
01:01:00
You do what you say you're going to do.
01:01:03
You don't wait to be told what to do,
01:01:05
right? Like I've been an entrepreneur
01:01:07
all my lifetime. The hardest thing about
01:01:09
being an entrepreneur is what?
01:01:12
>> Yeah.
01:01:12
>> Everything.
01:01:14
>> It's everything. And most people are
01:01:15
entrepreneurs go, "Well, it's, you know,
01:01:16
a lot of times it's hard to have good
01:01:18
people unless you're a good leader."
01:01:20
People are so thirsty to have jobs with
01:01:23
purpose and meaning. And most people are
01:01:26
actually looking for leadership.
01:01:28
So if you can be really good at what you
01:01:31
do, you will make more money. There's no
01:01:34
limit to wealth in the world, right?
01:01:35
Like we've never seen so much wealth
01:01:38
being created in our entire lives as
01:01:39
right now. If I were young, a lot of
01:01:41
people, well, you should learn AI.
01:01:44
Yeah, you know what? Probably you
01:01:45
definitely should learn how to use AI
01:01:46
because if you don't learn how to use
01:01:47
AI, you're going to have really limited
01:01:49
skills and go the and do certain jobs.
01:01:52
You know what else people are going to
01:01:53
go out and do? Learn how to be a
01:01:55
plumber. Learn how to be electrician.
01:01:58
Learn how to put up garage doors. I've
01:02:01
got friends. I got I was just recently
01:02:02
on a podcast with a guy who's made a
01:02:04
billion dollars putting in garage doors.
01:02:07
>> And he took me through his warehouse and
01:02:11
showed me their garage door models. And
01:02:14
I was like, you know, I've got a friend
01:02:15
who makes gyms that go in garages. I
01:02:17
just connected them. He's got a huge
01:02:18
business making gyms for garages.
01:02:23
There's just no limit to the amount of
01:02:25
opportunities out there. You have to
01:02:26
though get out of a stuck mind frame. I
01:02:28
mean, you had Tony Robbins here. If
01:02:29
there's anybody who can help you get out
01:02:31
of a stuck mind frame, it's that guy,
01:02:34
right? But you can't you can't have they
01:02:37
Zig Ziggler used to call it stinking
01:02:38
thinking. You have to have
01:02:42
the ability to look into the future and
01:02:45
believe that your future can be as
01:02:46
exciting today or better. I put up a
01:02:50
post yesterday. I said, um, I would
01:02:52
rather be an optimist and be wrong than
01:02:57
a pessimist and be right.
01:03:00
And you show me somebody who wants to
01:03:02
make more money, go into the world an
01:03:05
optimist and figure out how to go make
01:03:07
more money.
01:03:09
Do you think a lot of this is a mindset
01:03:11
at at at the core of it? Obviously there
01:03:13
are real socioeconomic factors and
01:03:15
there's people live in certain
01:03:16
situations and if I think back to you
01:03:18
know where I was born in Botswana
01:03:20
there's just less opportunity and
01:03:21
sometimes you have repressive
01:03:22
governments and other factors that will
01:03:24
objectively keep you stuck but all other
01:03:27
things being equal
01:03:30
how much of the game is mindset.
01:03:32
>> It always comes down to a decision and
01:03:34
we started by talking about my
01:03:36
grandmother. If my grandmother hadn't
01:03:38
made a decision at 30 that she didn't
01:03:40
want to be poor, she was tired of living
01:03:42
paycheck to paycheck. If she hadn't
01:03:45
decided that she would go out and teach
01:03:46
herself about money and take 50 cents of
01:03:48
her paycheck and 50 cents from my
01:03:50
grandfather's paycheck and start
01:03:52
investing,
01:03:54
I wouldn't be here today. She made a
01:03:56
decision that had a ripple effect
01:03:58
through our family. She built financial
01:04:01
security for herself with that one
01:04:02
decision.
01:04:04
She taught my father how to invest and
01:04:06
he was a financial adviser for over 45
01:04:08
years. My sister's a financial adviser.
01:04:11
I was a financial adviser. I spent the
01:04:13
last 30 years teaching people about
01:04:14
money. One woman's decision had this
01:04:17
ripple effect. So, one thing I say to
01:04:20
people who are listening, especially the
01:04:21
moms,
01:04:23
sometimes you got to make a decision
01:04:25
that's not just for you.
01:04:27
You're actually making a decision for
01:04:29
your family. and you can come up with a
01:04:31
list of reasons why this stuff won't
01:04:33
work. Somebody who's watching this show
01:04:35
or listening to us right now, they're
01:04:38
already interested in this. That's why
01:04:40
they're here. Now, they're here for a
01:04:43
couple reasons. Either A, they're
01:04:44
hurting financially and they know they
01:04:47
need to fix something. Great. Start
01:04:49
where you are. Fix what needs to be
01:04:52
fixed. Some people are like, you know, I
01:04:54
think I'm doing pretty well, but I'm not
01:04:55
sure if I'm doing everything well. you
01:04:57
know, I I've I've opened up my Roth IRA
01:05:00
or I've opened up my 401k plan. I'm
01:05:02
putting some money away, but I don't
01:05:04
know if I'm putting enough money away.
01:05:07
Then you can improve what you're doing.
01:05:09
Some people like, I'm renting. I think I
01:05:11
would like to buy a house someday. All
01:05:13
right, make that a goal. I teach three
01:05:14
buckets when it comes to money. Three
01:05:16
baskets. Pay yourself first for
01:05:18
retirement. We haven't even talked about
01:05:20
emergencies yet. Putting aside putting
01:05:22
aside money for emergency purposes. Have
01:05:24
to talk about that. You got to you got
01:05:26
to get more money put aside for
01:05:27
emergency purposes and then building a
01:05:29
dream account. You need to put money
01:05:30
away for your dreams. Those three
01:05:33
accounts should be automated.
01:05:35
>> And on that point of having three
01:05:36
accounts, you call it a future account,
01:05:38
an emergency account, and a dream
01:05:40
account. How much of your earnings
01:05:42
should you be putting into each of those
01:05:43
accounts on a monthly basis?
01:05:45
>> All right. So, keep it super simple. I
01:05:47
recommend one hour a day. Again, said
01:05:50
this earlier, it's 12 and a half% of
01:05:52
your gross income. When you say 1 hour a
01:05:53
day, you mean one hour of the the time
01:05:55
you work per day.
01:05:56
>> Yeah. So, whatever you make an hour.
01:05:58
>> Yeah.
01:05:58
>> It's if you're say if if you're working
01:06:00
a 40hour work week, 12 and a half% of
01:06:03
your gross income goes off the top into
01:06:06
a retirement account. Now, let me just
01:06:08
say something up for the yahutters.
01:06:10
They're like, I can't go from 0 to 12%.
01:06:12
There's no way. Then start at 1%.
01:06:15
If you're not saving right now and
01:06:17
you're listening to us and all you do
01:06:18
when you leave this podcast is make one
01:06:22
decision
01:06:23
and that decision is I'm going to save
01:06:25
1% of my income and you start that this
01:06:28
month your life will change. Your life
01:06:31
will change because you start the
01:06:33
process of making a difference. It's
01:06:34
just like the first day you go to the
01:06:36
gym. Now I will tell you if you save 1%
01:06:38
of your income you won't notice it. And
01:06:40
if you did that every month for a year,
01:06:43
at the end of the year, you would have
01:06:44
saved 12% and you will be saving four
01:06:46
times what the average American saves
01:06:48
and you will be in a rockstar shape.
01:06:51
Then the second hour, this is where
01:06:53
people's minds blow up. But the second
01:06:55
hour, so the first hour goes for the
01:06:57
future, the second hour goes for safety
01:06:59
and for dreams. So 30 minutes of your
01:07:02
income, roughly 5%
01:07:05
should go into an emergency account and
01:07:07
another 5% goes into a dream account.
01:07:10
Now, that dream account could be for
01:07:12
buying a house, could be saving money
01:07:14
for college, could be the vacation you
01:07:17
want to take at the end of the year,
01:07:18
could be getting married, could be the
01:07:20
engagement ring, but you're putting
01:07:23
money away for your dreams. Because when
01:07:25
you put money away for your dreams,
01:07:28
that's how they become real.
01:07:30
>> And you know, the book is called The
01:07:32
Automatic Millionaire. This is a book
01:07:34
that sold over two million copies
01:07:36
>> um on its own.
01:07:38
Why did you use the word automatic?
01:07:41
>> Unless your financial plan is automatic,
01:07:44
it will fail.
01:07:46
How do I know this? Because I spent nine
01:07:49
years as a financial adviser at Morgan
01:07:51
Stanley and I got to see firsthand.
01:07:53
Everyone who came into my office with an
01:07:55
ordinary income who built wealth, they
01:07:57
did it by saving automatically.
01:08:00
Every single time a client came into my
01:08:01
office and they said, "I'm going to
01:08:03
bring you a check every month myself." I
01:08:07
never had a client save for more than
01:08:08
six months. They stopped.
01:08:12
When it once you make the decision to
01:08:14
automate your financial life, it works
01:08:17
in the background.
01:08:19
Now, here's the thing. Everybody else is
01:08:21
already doing this to you.
01:08:24
You go sign, you go to go to a gym to go
01:08:26
work out. They don't ask you to bring
01:08:28
them money every month. They
01:08:29
automatically bill you. You get a phone
01:08:32
bill, they automatically bill you.
01:08:34
Today, in many cases, when you rent,
01:08:35
they automatically pull the money out of
01:08:37
your account. The banks automatically
01:08:39
take money from you for your mortgage.
01:08:41
When you pay taxes, they're all
01:08:43
automated. Everyone takes money from you
01:08:46
automatically. Everything that you sign
01:08:48
up for on your phone is a subscription
01:08:50
service. Netflix, go through your credit
01:08:54
card today. Open up your phone, look at
01:08:56
all your subscriptions. All those
01:08:58
businesses are taking money from you
01:08:59
automatically. Why? That's the only way
01:09:02
they can be in business. They know if
01:09:05
they don't get money from you
01:09:06
automatically, you won't keep using
01:09:08
them. Most people who start off with a
01:09:11
free subscription, it'll take them three
01:09:14
to six months to turn off something that
01:09:18
they don't use.
01:09:21
I'm here getting people to automate
01:09:22
their financial life for themselves.
01:09:26
Is there simple ways, apps, tools,
01:09:28
websites we can use to go through all of
01:09:31
our subscriptions and turn them all off?
01:09:34
>> Yes, there are. So, let me tell you the
01:09:36
easiest way. This is really actually
01:09:39
free publicity for Apple, okay? Because
01:09:42
so many people have Apple phones. Number
01:09:45
one, only do your subscriptions inside
01:09:48
of Apple. In an ideal world, don't pay
01:09:51
anybody directly. Do it all through
01:09:52
Apple.
01:09:53
>> Why? Because if you go to the bottom of
01:09:56
your phone and you don't know how to do
01:09:57
this and you put subscriptions,
01:09:59
up will pop everything that you've
01:10:01
signed up for and you can go click click
01:10:03
click and turn them all off.
01:10:05
>> Do that.
01:10:05
>> Another thing I will tell you is that
01:10:07
when you sign up for anything, let's say
01:10:10
it's a one year because everything now
01:10:11
is a one-year trial subscription or a
01:10:14
one month trial subscription.
01:10:16
The moment you sign up for it, shut it
01:10:18
off. Because what happens is if you sign
01:10:20
up for anything and think of any
01:10:22
subscription you can imagine. Companies
01:10:24
hate me for this. The moment you shut it
01:10:26
off, when the time comes for it to
01:10:29
renew, they will offer you a better deal
01:10:31
to renew.
01:10:32
>> Okay, so I've opened up my phone. I've
01:10:34
gone to the settings. I've clicked on my
01:10:36
name in the settings and then I've
01:10:38
clicked on the button subscriptions.
01:10:40
I have one, two, three, four, five, six,
01:10:44
seven, eight, nine, 10, 11 of which
01:10:50
three of them
01:10:52
I would keep.
01:10:54
So, all these other ones have just been
01:10:56
running in the background and and it's
01:10:58
because I used an app one time and it
01:11:00
signed me up to some kind of free trial
01:11:02
and I just totally forgot to cancel it.
01:11:04
So, I've got Oh my god, some of them are
01:11:06
massive.
01:11:06
>> Okay. So, so as you do this, what you're
01:11:09
doing right now is a real life example.
01:11:13
So, if someone's listening to us,
01:11:15
watching this, they're married, they've
01:11:17
got kids, or they're single by
01:11:19
themselves,
01:11:20
this one exercise, my guess is there are
01:11:24
many, many people listening that could
01:11:25
find $50, $100, $200 a month that they
01:11:28
could shut off and redirect that money
01:11:30
to saving and investing and that could
01:11:33
change their life. Are there other apps
01:11:35
you can use and go to to figure out how
01:11:38
to cancel or leave your subscription?
01:11:39
>> So there there are and most these apps
01:11:41
you have to pay for, right? So like you
01:11:43
can go to So then you're right back into
01:11:45
paying for an app now. Probably the two
01:11:46
popular most popular apps are Monarch
01:11:50
and Ynab. You can also do this with your
01:11:53
credit cards. Um the credit card comes
01:11:55
doing a better job of showing it on your
01:11:57
statements. And again, I go back to the
01:12:00
Apple example because Apple makes it the
01:12:02
easiest to shut these off.
01:12:04
>> Maybe some of you will be spending $100
01:12:06
a month. So, I did $100 a month. And it
01:12:08
says if you invest if you sort of cancel
01:12:10
those subscriptions and invest $100 per
01:12:13
month for 40 years, an annual rate of
01:12:15
return of about 10%, which is roughly
01:12:17
what you get if you just put it into
01:12:19
some of the big tech index funds at the
01:12:21
moment. The total money you'll have in
01:12:23
40 years is $632,000,
01:12:28
which is staggeringly life-changing
01:12:30
amount of money.
01:12:31
>> It's staggering. And let me just give
01:12:33
some very specific investment for people
01:12:36
to consider, right? And they still need
01:12:37
to do their own due diligence and read
01:12:39
perspectuses. And yes, there's risk
01:12:41
involved in the stock market. But the
01:12:42
first one I would talk about and look
01:12:44
at, and these are all listed in my book
01:12:46
because I just want to give because
01:12:47
people like, what's an index fund? What
01:12:48
do I buy? Look at the Vanguard Total
01:12:51
Stock Market Fund. The symbol is VTI.
01:12:55
Okay, this this is actually the largest
01:12:57
index fund in the world. There's
01:12:59
trillions of dollars now in this fund. I
01:13:01
talk about it in the book. I looked up
01:13:03
the annual uh the annual returns of VTI
01:13:05
the last 10 years have been 14%.
01:13:08
14% annually. This fund has 3500
01:13:12
stocks. You you know all the biggest US
01:13:15
stocks. So you don't have to figure out
01:13:17
what stock to buy. You buy this fund,
01:13:19
you buy an exchange traded mutual fund,
01:13:21
you have access to 3,500 great American
01:13:25
companies. I'll give you another stock
01:13:28
index fund. I love
01:13:30
>> and everybody can buy this on their
01:13:31
phone right now probably
01:13:33
>> literally. You can go to Vanguard,
01:13:34
Schwab, Fidelity. This funds, this is an
01:13:37
ETF, so it's available everywhere. It's
01:13:39
a stock. And if you want to figure out
01:13:41
how to do this and you're listening
01:13:42
right now, what I'd do is use ChatV or
01:13:44
Gemini and put in the stock the the fund
01:13:47
that um has been said and ask it how do
01:13:51
I invest in this in the country that I'm
01:13:52
in? What app do I need to use? What
01:13:53
website do I need to use? Again, this is
01:13:55
not investment advice. Well, I guess it
01:13:57
kind of sounds like it is, but
01:13:58
>> Well, and but it's also like so like if
01:14:00
someone says, "Okay, but I'm not I'm in
01:14:02
um wherever I am. I'm in the UK. What's
01:14:04
an index fund in the UK that covers the
01:14:07
UK?" I'll give you the global version of
01:14:10
VTI. So, because I own these funds, so I
01:14:13
So, the global version of VTI is a
01:14:16
symbol which is all I'm going to give
01:14:17
you another Vanguard fund.
01:14:18
>> When you say you own these funds, for
01:14:19
clarity, you mean you've invested in
01:14:20
them?
01:14:20
>> Yeah, I've got money in these mutual
01:14:22
funds. So, this other fund because I
01:14:24
have I want money my my personal money
01:14:26
that's in the stock market. I am
01:14:28
one-third global investments and I'm
01:14:30
twothirds US investments.
01:14:33
So, I have a lot of global index funds.
01:14:35
This global index fund the symbol is Va.
01:14:39
Okay. So this is the Vanguard global
01:14:42
index fund without US stock. Symbol
01:14:44
again is VA.
01:14:47
That fund last year and it won't always
01:14:49
be like this because global investments
01:14:51
have underperformed the US for a long
01:14:53
period of time. That fund last year was
01:14:55
up 35%.
01:14:57
Last year, global investments
01:14:59
significantly outperformed the US
01:15:01
investments and the US investment market
01:15:03
was up on average of 17%. So the US
01:15:06
markets were up 17% or higher and global
01:15:09
investments were up 30% or higher. Now
01:15:11
there will be a point in time, Stephen,
01:15:13
without a shadow of a doubt that we will
01:15:15
see a market pullback. And when that day
01:15:18
comes, you have to stay the course and
01:15:20
keep investing automatically monthly.
01:15:23
And then I'm going to give you a tech
01:15:24
fund because everybody wants to know
01:15:26
what should I invest in that is, you
01:15:29
know, should I invest in an AI tech
01:15:31
fund? And my answer would be is you
01:15:34
don't need an AI tech fund. You need the
01:15:37
best tech fund that's existed in my
01:15:39
lifetime. And that's the NASDAQ 100 ETF.
01:15:44
The symbol for that is QQQ.
01:15:48
So go and look up, you know, go into
01:15:50
whatever you're using and go look up
01:15:52
QQQ, read about the top 100 stocks in
01:15:55
the NASDAQ and the returns for QQQ. I
01:15:58
mean, actually, in the top of my mind
01:15:59
right now, I can I think it's over 20%.
01:16:03
Um, but look up what has the QQQ total
01:16:06
return been for the last 10 years.
01:16:09
I can tell you since I put money in QQQ,
01:16:11
it's gone up tenfold. Now, the market's
01:16:15
been unbelievable and there will be
01:16:17
pullbacks. And that is also why I should
01:16:20
say this, Stephen, because we haven't
01:16:21
even addressed this. I don't run around
01:16:23
telling people to put all their money in
01:16:24
the stock market. I also don't think
01:16:26
that young people should be putting all
01:16:28
their money in the stock market. I think
01:16:30
one of the greatest myths out there is
01:16:33
that when you're young, you should take
01:16:34
a lot of risk. Let me say that one more
01:16:37
time because it's super important. So,
01:16:38
make sure it sits.
01:16:41
Everyone says when you're young, you
01:16:44
should take risk.
01:16:47
The problem with that advice is that
01:16:49
today people in their 20s and their 30s
01:16:51
are taking a lot of risk. They're not
01:16:54
just putting money in index funds.
01:16:56
They're putting money in meme coins.
01:16:58
They're putting money in meme stocks.
01:17:01
They're putting money in NFTTS.
01:17:04
They're on social media and Tik Tok
01:17:06
watching people day trade. They're
01:17:08
trying to get into options. What they're
01:17:10
really trying to do is get rich quick.
01:17:12
All I can tell you is the older guy in
01:17:14
the room here, people who try to get
01:17:17
rich quick stay broke forever. And the
01:17:20
problem with taking too much risk with
01:17:22
your money when you're young is if you
01:17:23
keep if you do everything right, like
01:17:25
let's just say you're the you shut off
01:17:27
all your subscriptions and you're saving
01:17:29
$200 a month, but you put that $200 a
01:17:32
month into a junk investment and you
01:17:35
turn around in 10 years and you have
01:17:36
nothing to show for it, you'll stop
01:17:39
investing.
01:17:41
>> Looking at the QQQ data, so this is the
01:17:43
NASDAQ 100. So this invests in the top
01:17:46
100 companies in America. in the NASDAQ
01:17:49
stock exchange.
01:17:50
>> The returns over the last 10 years from
01:17:53
2016 to 2026, the annualized returns
01:17:55
have been roughly 19%.
01:17:58
The total return over that period has
01:18:00
been roughly 480%.
01:18:03
So, a $10,000 investment 10 years ago
01:18:06
would now be worth approximately $60,000
01:18:09
today if you'd done nothing.
01:18:10
>> Then nothing
01:18:11
>> ever added to it. Over the last 20
01:18:13
years, the annualized returns, the
01:18:15
return every year has been 15% with a
01:18:18
total return over that period of 1,500%.
01:18:22
And again, so if you've added $10,000 to
01:18:24
it 20 years ago and done nothing, you
01:18:26
would have roughly $170,000
01:18:29
today.
01:18:31
>> So here's the beauty of what you just
01:18:32
did. You checked my my you checked my
01:18:36
advice. You looked at the data and now
01:18:39
you know what has been done in the past,
01:18:41
right? Let me give you a super boring
01:18:44
fund. I'm not sponsored by Vanguard. I'm
01:18:46
just giving generic vanilla stuff here.
01:18:48
Look up the Vanguard balanced fund. So,
01:18:52
right, Vanguard Balanced Fund. And the
01:18:55
Vanguard Balance Fund is 60% stocks and
01:18:58
40% bonds. That by the way is the most
01:19:02
typical asset allocation. The difference
01:19:04
between stocks and bonds in the world.
01:19:08
The average retiree has a portfolio
01:19:10
that's about 60% stock and 40% bonds.
01:19:13
You look up the Valangard balance fund
01:19:15
and what you're going to find is that
01:19:16
fund has averaged over 8% annually since
01:19:19
inception.
01:19:21
It is as boring an investment as they
01:19:24
come. So if someone says, "Well, I don't
01:19:26
want to be 100% stocks. I just want to
01:19:28
be I want to be more conservative, but I
01:19:30
want some stock exposure. The Vanguard
01:19:32
balance fund is a great example.
01:19:35
I list all these funds in the automatic
01:19:38
millionaire. One of the kind of funds I
01:19:40
talk about the most is what's called a
01:19:42
targetdated mutual fund. I don't know if
01:19:45
you guys have you guys have a 401k plan.
01:19:47
>> We have something similar.
01:19:48
>> Okay. So in the US if if you have a 401k
01:19:51
plan what you're going to find when you
01:19:52
open up your 401k plan is you have what
01:19:54
are called targetdated mutual funds.
01:19:57
This is a onestop mutual fund solution
01:20:02
to your investing all the way until you
01:20:05
retire and it will be divided among
01:20:08
stocks and bonds and it will be what's
01:20:10
called rebalanced automatically as you
01:20:13
get closer to retirement. So, it'll go
01:20:14
from being more stocks when you're
01:20:16
young, less stocks as you get older.
01:20:19
There are trillions of dollars now in
01:20:21
these target date mutual funds. When I
01:20:22
wrote the automatic miller 20 years ago,
01:20:24
was just getting started. This automatic
01:20:27
solution to investing has changed the
01:20:29
game of investing for millions of
01:20:31
Americans. That's why there's 24 million
01:20:33
millionaires and that's why there's now
01:20:34
$45 trillion in retirement accounts.
01:20:38
>> We have a brain budget. The way to think
01:20:41
about it is we have a limited amount of
01:20:44
energy that we can spend every single
01:20:46
day. I'm saying find ways to simplify
01:20:48
your life. And one way I've conserved my
01:20:50
body budget is via our sponsor Factor
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subscription purchase.
01:21:32
Over the years, people have reached out
01:21:34
asking me for mentorship. But the
01:21:35
challenge I've always faced is that my
01:21:37
calendar doesn't permit me to help every
01:21:39
single person that reaches out. So when
01:21:41
I know I can't personally help, I try to
01:21:43
push people towards tools that I think
01:21:44
can. And that's why I wanted to tell you
01:21:46
a little bit about a resource that I
01:21:48
think will be great for those of you who
01:21:49
are founders of small and medium-sized
01:21:51
businesses. It's a content series that
01:21:53
our longtime show sponsor Vodafone has
01:21:55
created. It's called Vodafone
01:21:57
Business.connected.
01:21:59
You'll find it on YouTube. This series
01:22:01
delivers the knowledge that founders
01:22:03
today need to grow their company in the
01:22:04
digital age. There you'll learn about
01:22:06
personal branding, cyber security,
01:22:08
scaling e-commerce companies, and
01:22:09
through conversations with many founders
01:22:11
who I've invested in and work closely
01:22:13
with, the opaque picture of building a
01:22:15
business will become clear. Some of
01:22:17
those founders I've invested in in the
01:22:18
series include Cristiana Brenton from
01:22:20
Flight Story, Marissa Poster from
01:22:22
Perfect Ted, Leo Harrison from Chapter
01:22:24
2, and Georgia Gibson, who I've
01:22:26
partnered with to build Steven.com. And
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these are just a few of the great names
01:22:29
involved. Search Vodafone
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business.connected to learn more.
01:22:33
The other book that you wrote which sold
01:22:36
incredibly incredibly well is this book
01:22:38
about smart couples finish rich. That's
01:22:40
the title. Smart couples finish rich.
01:22:42
Nine steps to creating a rich future for
01:22:44
you and your partner.
01:22:45
>> As it relates to how rich or wealthy you
01:22:47
become, the person you choose and the
01:22:49
way that you configure that
01:22:50
relationship. How consequential is that?
01:22:54
>> It's everything
01:22:55
>> really.
01:22:56
>> It can be everything. Why?
01:22:58
>> You're married. I'm married.
01:22:59
>> Yeah.
01:23:00
>> So, why can it be everything?
01:23:03
>> Because here's what here's what happens
01:23:05
in the real world, Stephen.
01:23:07
>> Often we marry our financial opposite.
01:23:11
So, I always joke like I used to do a
01:23:13
lot of seminars for couples and I'd say
01:23:15
there's two types of people that are
01:23:16
born in the world. One person comes out
01:23:19
literally with a calculator and they're
01:23:20
born to track where all the money goes
01:23:22
and they love to budget and they're
01:23:24
super excited about investing. That's
01:23:26
one kind of person. The other kind of
01:23:29
person loves to shop, loves to spend
01:23:32
money. Almost inevitably those two
01:23:35
people hook up. Now, sometimes two
01:23:38
people who like to spend money marry.
01:23:40
That's a disaster because they end up
01:23:43
broke. So now, what do you do about the
01:23:45
couple that's got their financial
01:23:47
opposites?
01:23:48
That's what led to smart couples finish.
01:23:50
Because
01:23:53
if you are married to your financial
01:23:55
opposite, you will fight about money all
01:23:58
the time. And fights about money are
01:24:02
what lead to divorce. They're the number
01:24:05
one cause of divorce. The real key and
01:24:08
what I've been teaching now for over two
01:24:10
decades is the way you get couples on
01:24:12
the same page when it comes to money is
01:24:14
you start with your values. So you look
01:24:17
at what do you really value most
01:24:19
together as a couple.
01:24:20
You put the money aside for a second.
01:24:23
You go through your values. What's most
01:24:25
important to you. What do you really
01:24:27
care about? You talk about your values.
01:24:30
And then you build a financial plan
01:24:32
around what's really most important to
01:24:34
you.
01:24:35
>> You say that there's six worst money
01:24:37
mistakes that couples make. And the
01:24:39
first of those is not deciding who is
01:24:41
responsible for what.
01:24:42
>> Yeah.
01:24:44
So often in a relationship, one person
01:24:47
pays the bills.
01:24:50
Okay,
01:24:51
who's managing the money? Now, I used to
01:24:55
say in every household there should be
01:24:56
at least one person that's paying the
01:24:58
bills and if the other person is
01:24:59
managing the money, meaning that they're
01:25:00
in charge of investments, that you still
01:25:03
get together and go through it. As I've
01:25:06
gotten older, I've really realized how
01:25:08
important this is because I go back to
01:25:10
the fact that the average age is 59.
01:25:12
Average age of widowhood is 59. I'm 59
01:25:15
now. I've had three best friends already
01:25:18
pass away, all men, and they passed away
01:25:22
before they were 57. So, all these
01:25:24
statistics that I talk about, I'm seeing
01:25:26
them come true. And I will tell
01:25:29
especially to the women, hear me loud,
01:25:31
hear me on this loud and clear, but this
01:25:33
is important for the men, too.
01:25:37
The question you need, this is hard to
01:25:38
hear. The question you have to ask
01:25:40
yourself
01:25:42
is if your partner died today,
01:25:45
what would you need to know about the
01:25:47
finances?
01:25:49
And the answer is everything. Now, what
01:25:51
does that mean? Everything. That means
01:25:52
you would need to know where is the
01:25:54
money.
01:25:55
Does he have money in an old 401k plan?
01:25:57
Does he have money in IRA account? Does
01:25:59
he have money in a bank account?
01:26:01
Where are the passwords to get into the
01:26:03
accounts? Where's the will? You know,
01:26:07
six out of 10 people listening to us
01:26:08
today don't have a will. You have to
01:26:11
have a will
01:26:12
>> at any age.
01:26:13
>> At any age. If you, especially if you're
01:26:15
in a relationship, you have to have a
01:26:16
will. If you have kids, you have to have
01:26:18
a will. Is there life insurance? You
01:26:21
know, so many people today who have
01:26:23
children don't have life insurance and
01:26:24
they don't have assets. You should at
01:26:26
least get a million to$2 million term
01:26:28
policy. Super inexpensive. Protect your
01:26:31
family. You have to run the drill,
01:26:35
right? Like we got on a plane, we flew
01:26:37
here today. The first thing they do on a
01:26:38
plane before you take off is they talk
01:26:40
to you about what to do in case of
01:26:41
emergency purposes. The mask's going to
01:26:43
come down. You're going to put it on
01:26:44
your face. Okay. You get on a cruise
01:26:46
boat. The first thing they do is talk
01:26:47
about what you're going to do if the
01:26:48
cruise boat's got a problem. You're
01:26:49
going to go get in these emergency
01:26:50
boats. You need to run the fire drill
01:26:54
for your family on finances. I almost
01:26:57
died like it's now been four years ago.
01:26:59
I uh my wife found me face down, passed
01:27:02
out. I was brought to the hospital in
01:27:05
Florence. Um I was in a coma for four
01:27:08
days. I was in the hospital for 17. I
01:27:12
had menitis. When I came out of just
01:27:16
like a movie, I'm laying down. I mean,
01:27:18
I'm laying down in the hospital.
01:27:20
Doctor's looking over me. Doctor says,
01:27:22
"Do you know what your name is?" I said,
01:27:25
"It's David." He said, "Very good." He
01:27:27
goes, "Your last name is?" I said, "It's
01:27:29
Boach." He says, "Do you know where you
01:27:31
are?" I go, "Yeah, I'm in Milan. I just
01:27:33
had an ankle surgery." Because I had had
01:27:35
an ankle surgery two weeks prior, two
01:27:38
two weeks before that. And he says, "No,
01:27:40
no, you're you're in Santa Maria Nolla.
01:27:42
You're in the ICU. Uh we're treating you
01:27:45
right now for menitis, but now that
01:27:47
you've opened up your eyes, you're going
01:27:48
to be you're going to be okay. You're
01:27:50
safe now." And then they brought my wife
01:27:52
in. They said, "Do you know what her
01:27:54
name is?" I and I made a joke. I said,
01:27:57
"It's Rebecca." She was like, "Who?" I
01:28:00
go, "Honey, I can still be a smartass in
01:28:01
the hospital. It's Alatia." And she
01:28:04
starts screaming and yelling and she's
01:28:05
like, "Oh my god, oh my god, he's okay."
01:28:07
But Stephen, the truth was I wasn't okay
01:28:09
because when you get men and judges, you
01:28:11
get brain swelling. So I couldn't
01:28:13
remember things. I couldn't remember my
01:28:15
passwords to the to the bank account. I
01:28:18
didn't know the passwords to my phone
01:28:19
number anymore, to my phone.
01:28:22
One of the things I did when I came out
01:28:23
of the hospital, because I always manage
01:28:26
the money, is I said to my wife, "We're
01:28:29
going to hire a financial advisor
01:28:31
and you have to be involved in what's
01:28:33
going on." We actually had yesterday our
01:28:36
annual account review. Because I tell
01:28:38
couples, you got to have an annual
01:28:39
account review either together and if
01:28:41
you have a financial adviser at a
01:28:42
minimum with your financial adviser. And
01:28:45
I didn't want to cancel the appointment
01:28:47
because I was, even though you guys
01:28:48
invited me to come here, I'm like, I'm
01:28:50
keeping the appointment. We'll fly here
01:28:51
to flute this morning. And so again,
01:28:55
having worked at, you know, Morgan
01:28:56
Stanley for nine years and been a
01:28:58
financial adviser, I've seen too many
01:28:59
couples not do this,
01:29:02
including sadly Stephen, my dad just
01:29:05
recently passed away. And my dad was in
01:29:08
the money management business his whole
01:29:10
life. So he managed the money and my mom
01:29:14
was not involved. And when my dad passed
01:29:17
away, we had to just like my book, step
01:29:20
in and help my mom with everything. Now,
01:29:23
she's lucky. She's got two kids in the
01:29:25
business, but she didn't. My mom was
01:29:27
just a ripe waiting example of somebody
01:29:31
who could be taken advantage of. So, the
01:29:33
time to learn about money is before
01:29:34
there's a problem. If you took smart
01:29:37
couples finish honestly Stephen that you
01:29:39
it's it's designed to be a a roadmap for
01:29:43
two people together where you can sit
01:29:45
down and go through this book chapter by
01:29:47
chapter together starting with just
01:29:50
organizing your financial information
01:29:51
putting everything into file folders
01:29:53
starts the conversation and then talking
01:29:56
about your values then talking about
01:29:58
your dreams then going into well what
01:30:01
what do you want to share you know you
01:30:03
have a very comp I don't know all your
01:30:06
stuff, but I've followed you for years.
01:30:08
As I told you, I'm a fan of yours. I've
01:30:09
got your book. I've watched your
01:30:11
podcast. I've listened to you now for
01:30:12
years. As your business is expanding,
01:30:15
your life is getting more complicated.
01:30:18
God forbid something happens to you
01:30:20
tomorrow.
01:30:21
>> Yeah. It'd be a [Â __Â ] nightmare.
01:30:22
>> And she's your fiance.
01:30:24
>> Yeah.
01:30:24
>> She wouldn't even know where to start.
01:30:27
>> And I don't know if she would know who
01:30:29
to call.
01:30:31
So, it's a worthwhile conversation. like
01:30:34
I just had this guy in the show and I
01:30:35
don't know maybe maybe we really need to
01:30:37
like need to involve you a little bit.
01:30:39
>> I was just looking at some of the data
01:30:40
here and it says that in terms of income
01:30:43
ignorance according to a 2021 study by
01:30:45
Fidelity Investments nearly 40% of
01:30:48
couples could not even identify how much
01:30:50
their partner earned. It says in terms
01:30:53
of financial infidelity, surveys from
01:30:56
bank rate and creditcards.com
01:30:57
consistently find that up to 40% of
01:31:00
adults share that they have kept
01:31:02
financial secrets which is hiding cash,
01:31:04
hiding bank statements and hiding debts
01:31:07
that they have from their romantic
01:31:08
partner. So that's almost half and you
01:31:11
pointed at this earlier on which is the
01:31:12
CFO dynamic. In many households, one
01:31:15
spouse acts as the chief financial
01:31:17
officer. And research indicates that
01:31:18
roughly 50% of couples um have a
01:31:21
non-managing spouse who has little to no
01:31:23
idea how much money the family have
01:31:26
total. They don't know where it is and
01:31:28
they don't know the passwords.
01:31:30
>> It can sound scary. It can sound
01:31:32
intimidating. And yet, I can tell you
01:31:34
every day, people who actually kind of
01:31:36
do this basic stuff that we've talked
01:31:37
about, once you start to do it, you feel
01:31:39
a lot better. You feel better instantly.
01:31:41
You don't you don't have to go from
01:31:44
having no savings to having a million
01:31:45
dollars to feel better. If you just
01:31:47
start automatically saving some money,
01:31:49
paying yourself first. The moment you
01:31:52
make that decision, you'll feel better.
01:31:55
You go and you turn off some
01:31:56
subscription fees like you just looked
01:31:57
at. The moment you do that, you'll feel
01:31:59
better. It's literally like a financial
01:32:02
muscle. You start to build this
01:32:04
financial muscle when you start to take
01:32:06
action. It is action that changes your
01:32:09
life. I always say I wrote all these
01:32:11
books. If a person buys a book, reads it
01:32:13
and doesn't do anything, then I was a
01:32:16
form of entertainment.
01:32:18
If you listen to a podcast on money and
01:32:20
you don't do something, then we were
01:32:23
again a form of entertainment.
01:32:25
My purpose for doing this podcast today,
01:32:27
why I got on a plane and flew out here
01:32:28
immediately to do this with you was I
01:32:31
want to try to change somebody's life
01:32:33
today. I've always taken the approach of
01:32:35
like I want to change a person's life
01:32:36
one person at a time. And sometimes the
01:32:40
things I share are hard to hear, but I
01:32:42
also know they wake people up. You had
01:32:44
this great great quote in this book. I
01:32:46
was showing this today to my son.
01:32:49
I'm holding, for those of you who can't
01:32:51
see me, I'm holding Steven's book, A
01:32:52
Diary of the CEO, which has also sold
01:32:54
millions of copies. And this is your
01:32:56
quote on page 233. I wonder if you
01:32:59
remember your quotes because sometimes
01:33:00
you forget them, right?
01:33:02
If you want long-term success in
01:33:05
business, relationships, and life, you
01:33:08
have to get better at accepting
01:33:10
uncomfortable truths as fast as
01:33:13
possible.
01:33:15
When you refuse to accept an
01:33:17
uncomfortable truth, you are choosing to
01:33:20
accept an uncomfortable future.
01:33:23
The one thing that wasn't in this quote
01:33:25
was money.
01:33:27
And everything we're talking about is
01:33:28
I'm like, you're gonna work 90,000 hours
01:33:30
over your lifetime. If you don't pay
01:33:32
yourself first and you have nothing to
01:33:33
show for it, the uncomfortable truth is
01:33:35
you will be broke. We haven't talked
01:33:37
about um global issues and government
01:33:40
issues and debt.
01:33:43
Why do you have to take care of yourself
01:33:45
financially right now more than ever
01:33:46
before?
01:33:48
Because the future is about to radically
01:33:51
change. And I will talk out of both
01:33:53
sides of my mouth for a second. Number
01:33:55
one, I believe the next 10 years, hands
01:33:58
down, will be the greatest opportunity
01:33:59
to build wealth in our lifetime. AI is
01:34:02
create going to create so much wealth
01:34:05
that we've never seen anything like it.
01:34:08
Like when you look at the returns in the
01:34:09
stock market from last year, they're a
01:34:11
result of AI. What's happening is AI is
01:34:13
making companies more profitable and
01:34:16
more productive than they've ever been.
01:34:18
The downside is people are losing their
01:34:21
jobs, right? You've had people on the
01:34:23
show including Tony Robbins talking
01:34:25
about this and there are going to be a
01:34:26
lot more of those job losses. So some
01:34:29
people are going to get much wealthier
01:34:31
and then a whole lot of other people are
01:34:33
going to have a challenge. But there's
01:34:35
another problem that we we're not
01:34:37
talking enough about and that is the
01:34:40
safety nets of governments.
01:34:44
All these safety nets that were created
01:34:46
in the US, Social Security,
01:34:49
Medicare, Medicaid,
01:34:52
unemployment, you can go to through
01:34:54
every single country.
01:34:56
All of these things are called
01:34:58
entitlement programs, which is a fancy
01:35:01
word for saying the government made a
01:35:04
promise to you.
01:35:06
And a whole lot of people are dependent
01:35:09
on that promise and there's not enough
01:35:12
money to pay for those promises. So like
01:35:15
in the US, you take social security. The
01:35:18
average social security check right now
01:35:19
is $1,900.
01:35:21
Not a lot of money, but about 60 million
01:35:24
Americans
01:35:26
depend on that amount of money.
01:35:30
In the US, Social Security, this is
01:35:32
government data, not me. you can do all
01:35:35
this stuff online.
01:35:37
The government is telling us that in
01:35:39
2033, that's around the corner, the
01:35:43
Social Security is going to be
01:35:44
underfunded and they're going to have to
01:35:45
cut the benefits. Now, what they're
01:35:47
talking about is cutting the benefits by
01:35:48
20%. You have a lot of Americans that
01:35:51
that's going to be a real problem for
01:35:53
every country's got this issue because
01:35:56
people are living longer. Governments
01:35:58
have more debt than they've ever had. I
01:36:00
am here to tell you,
01:36:03
it's a cliche term, but no one's coming
01:36:05
to save you. It's you're gonna have to
01:36:07
save yourself and you're gonna have to
01:36:10
take your personal financial well-being
01:36:13
more seriously now than ever before. And
01:36:16
if you do, you will be in great shape.
01:36:19
If you don't, you will be dependent on a
01:36:22
system that is buckling.
01:36:25
One of the things in your I think it's
01:36:27
the sixth point of the six things that
01:36:29
couples get wrong is waiting too long to
01:36:31
pay off the mortgage. What do you mean
01:36:33
by that? I actually had a friend contact
01:36:34
me um and asked this. They said,
01:36:36
"Stephen, I've got some cash that that's
01:36:39
been given to me." I think through an
01:36:40
inheritance. Should I pay off my
01:36:42
mortgage or should I go invest in the
01:36:45
stock market in the S&P 500 or something
01:36:47
else?
01:36:47
>> Yeah.
01:36:48
>> And I didn't know what to say because
01:36:49
I'm not a financial adviser.
01:36:50
>> So, if you called me up and you said,
01:36:52
"David, what what should I do?" I'd go,
01:36:53
"Stephen, what's the rate on your
01:36:54
mortgage?" Then you'd say, "Well, David,
01:36:57
I got a mortgage 5 years ago and it's 2
01:36:59
and a half%." And I'd say, "Okay, well
01:37:00
that's a really low rate, Stephen. You
01:37:02
know what? You can put the money in a
01:37:04
money market account right now and make
01:37:05
more than that. So maybe you don't need
01:37:07
to rush to pay it off as fast as
01:37:09
possible." But if you've got a mortgage
01:37:11
at six or seven or eight%, it's a
01:37:14
no-brainer. The biggest thing I can tell
01:37:16
you about paying down your mortgage
01:37:17
early is actually really simple. Here's
01:37:21
ways to do it. If you make one extra
01:37:23
payment a year on a mortgage, you'll
01:37:25
take a 30-year mortgage and you'll pay
01:37:27
it off, depends on the rate, five, six,
01:37:30
seven years sooner.
01:37:32
So, you can go online, you can run a
01:37:34
calculator. Today, you don't even need
01:37:35
calculator. You just run the question.
01:37:36
You put in your mortgage. You tell
01:37:38
Gemini, here's the size of my mortgage.
01:37:40
Here's my mortgage payment. If I make an
01:37:43
extra payment a year, how many how many
01:37:44
years faster will I pay it off? And how
01:37:47
much will I save? And you'll see the
01:37:49
number. When people see the number in
01:37:52
black and white, they go, "I've got to
01:37:54
do that." Now, here's the key. Make that
01:37:57
payment automatic.
01:37:59
The easiest way you make your payment
01:38:01
automatic is either make one extra
01:38:03
payment at the end of the year or take
01:38:06
your mortgage payment and increase it by
01:38:08
10%. So, if your mortgage payment is
01:38:10
$1,000, make an $1,100 a month mortgage
01:38:13
payment and tell the bank you want to
01:38:15
add that to the principal. When people
01:38:18
do that, they need to make sure though
01:38:20
that money is actually paying down the
01:38:21
principal. And another way to do that is
01:38:23
a bi-weekly mortgage payment plan where
01:38:25
you take your mortgage, you split in
01:38:27
half, you pay half every two weeks.
01:38:28
That'll also pay your mortgage off
01:38:30
early.
01:38:31
>> Prenuptual agreements. I'm engaged.
01:38:32
>> Yep.
01:38:34
>> Should I be getting a prenup?
01:38:36
>> So, I would tell anyone who's getting
01:38:40
married,
01:38:42
number one, if your incomes are not the
01:38:44
same, you should get a prenup. Number
01:38:46
two, if you both have good incomes, you
01:38:47
should get a prenup. Number three, if
01:38:49
you're in your 30s, you should get a
01:38:51
prenup. You would never go into a
01:38:53
business without a contract.
01:38:56
Marriage is the ultimate contract. It
01:38:59
just is. Now, is it romantic to do a
01:39:01
prenuptual agreement? No. Does one
01:39:04
person in the relationship typically not
01:39:06
like the doing a prenup? Yes. I know a
01:39:10
lot of women today who want prenups and
01:39:12
the husbands don't want them. It's
01:39:13
whoever's making the money. But I will
01:39:15
say this about prenups. You need a
01:39:18
lawyer. She needs a lawyer. You cannot
01:39:20
go and do a prenup right before you get
01:39:22
married. When people do that, those
01:39:24
prenups get thrown out the window
01:39:26
because they will claim and say and have
01:39:29
an argument for, I was under
01:39:34
extremely undue influence to sign this
01:39:37
agreement before the wedding. And those
01:39:41
agreements get thrown out even if
01:39:43
there's disclaimer language. And both of
01:39:45
you need attorneys.
01:39:48
And prenuptual agreements can often be
01:39:50
like a negotiation. And you can learn a
01:39:52
lot about your partner that it's not
01:39:54
always pretty. I'm not saying you, but
01:39:55
one can learn a lot about their partner
01:39:57
that's not always pretty when you do a
01:39:58
prenuptual agreement. And once the
01:40:01
prenuptual agreement is done, if it's a
01:40:02
reasonable prenuptual agreement, it goes
01:40:04
in a file. It doesn't get looked at
01:40:06
again. And it won't matter unless the
01:40:09
day comes that you need to pull it out.
01:40:11
And that's for a firsttime marriage.
01:40:14
Okay, you're a second time marriage or a
01:40:16
third time marriage and you've got kids
01:40:19
and custody issues and and and support
01:40:23
for your first wife. You definitely need
01:40:26
a prenup.
01:40:27
>> What is the most important thing we
01:40:28
should have talked about that we didn't
01:40:29
talk about?
01:40:31
>> Stephen, we've talked a lot about money
01:40:32
today, but money is just a tool. So,
01:40:36
what we actually haven't got to talk a
01:40:37
lot about is using money just to free
01:40:40
yourself to live your best life. And you
01:40:43
don't have to have money to live your
01:40:44
best life. Again, money is just a tool.
01:40:48
So, what's most important in life? I'm
01:40:50
going to say things that people know.
01:40:52
Health. You I started following you
01:40:54
because of all the shows you did on
01:40:56
health.
01:40:57
Love.
01:40:59
People hold on to love way too much.
01:41:03
Gratitude.
01:41:05
Being consistently grateful for the life
01:41:07
you have. Friendship.
01:41:12
loving your friends fully
01:41:14
and the la last thing is fun. You know,
01:41:18
I think people go through life and at
01:41:20
some point they stop designing their
01:41:22
life. My grandmother used to say, you
01:41:26
got to dream it, design it, and do it.
01:41:32
And she's like, you're going to run out
01:41:34
of time. So what I would say to anybody
01:41:36
is like this is you've got this one
01:41:40
beautiful moment in time where you're
01:41:42
here.
01:41:45
What do you want?
01:41:48
And start working on that today.
01:41:51
>> You listen to the episode with Tony
01:41:53
Robbins.
01:41:53
>> Yeah.
01:41:55
>> You've referenced him several times in
01:41:57
this conversation. If someone were to
01:41:59
ask me who was the greatest mentor and
01:42:01
the greatest influence in my life
01:42:02
besides my grandmother and my father,
01:42:04
it's Tony Robbins. So I went to Tony
01:42:07
Robbins seminars in the early 90s back
01:42:09
in the day when he had an infomercial
01:42:10
with audio cassettes.
01:42:12
And I went to a program that he taught
01:42:14
in Hawaii. He had this big hotel called
01:42:17
the Yaloa. And he did it he did an
01:42:20
exercise. This is so I it's like I
01:42:23
remember like this yesterday. He said to
01:42:25
this the room we were in and there were
01:42:27
I don't know a thousand of us in this
01:42:29
room. He said, "How many of you have a
01:42:32
dream that you're not working on?" And
01:42:35
we all we all had dreams like and so he
01:42:37
got us into a peak state and he had us
01:42:39
work on our dreams. And then he asked
01:42:42
the question, "How many of you think
01:42:44
you're going to be alive in 10 years?"
01:42:47
Everyone's like, "Yeah, I'm going be
01:42:48
alive in 10 years." He's like, "Great.
01:42:50
So I got a question for you.
01:42:52
Are you going to be alive in 10 years
01:42:55
having worked on your dream?
01:42:58
Hopefully gotten it right, done all the
01:43:00
things I've taught you to do, you know,
01:43:03
modeled the masters, got yourself in
01:43:04
peak state, learned the pattern
01:43:06
recognition.
01:43:09
Have you gotten 10 years older having
01:43:11
gone through your dreams and maybe got
01:43:13
it? Or did you just get 10 years over 10
01:43:16
years older and you let your dream die?
01:43:22
you let your dream die and the room he
01:43:24
just let that sit and then he had us go
01:43:28
off in groups of 10 and share our
01:43:31
individual dream. So we'd all written it
01:43:33
down on paper. So I shared that my dream
01:43:37
and this young kid financial adviser I'm
01:43:40
a guy. I shared my dream was to write a
01:43:43
book called Smart Women Finish Rich and
01:43:45
teach a million women to be smart with
01:43:47
money so they could protect themselves,
01:43:50
teach their kids, and help their family.
01:43:53
My heart's pounding, Stephen. I'm
01:43:55
sharing this idea with 10 strangers. And
01:43:57
then we go back into the room and he's
01:43:59
like, "How'd that go? Are you guys all
01:44:00
ready?" Gets us back in a peak state. 10
01:44:02
minutes later, a woman comes, taps me on
01:44:04
the shoulder, and she says, "I just
01:44:05
heard about your dream. My name's Vicki.
01:44:08
I've worked on Tony's last two books. If
01:44:11
you want to do your book, you're gonna
01:44:13
need a book proposal. You've done books,
01:44:15
you know this. She's like, I can help
01:44:16
you write a book proposal. I hired her.
01:44:19
I started working on that book proposal.
01:44:21
Later, I would go after the same agent
01:44:24
that Tony has, Jan Miller. She'd become
01:44:26
my agent. He'd write a cover letter. I'd
01:44:29
get a book deal, and I'd start working
01:44:30
to help millions of people. It started
01:44:32
at a Tony Robbins seminar. And I go back
01:44:35
to my grandmother, right? Dream it,
01:44:37
design it, and do it.
01:44:40
He gave me the life skills to do that.
01:44:43
And I will tell you something about Tony
01:44:44
because you know, you see Tony on all
01:44:46
these shows and people go, "Is Tony the
01:44:48
real deal?" I Stephen, if I if I was
01:44:51
with you and I send Tony a text and I
01:44:53
and Tony has a lot of friends like this,
01:44:55
Tony gets right back to me. Tonyy's the
01:44:57
real deal. I just went to Germany and
01:45:00
took my older son Jack who's 22 to see
01:45:03
him do UPW in September could bring
01:45:06
tears to my eyes because I wanted Jack
01:45:08
to have the experience without me there.
01:45:10
So he was, you know, bless Tony sitting
01:45:13
in the front row. I came in on day three
01:45:16
when he was in the peak state and I came
01:45:19
in and I watched him, you know, I was
01:45:22
basically his age and I thought, God,
01:45:24
you don't, you know, I went in, I gave
01:45:26
him a hug and I'm like, you just don't
01:45:28
even know. This is just this experience
01:45:31
that you're seeing, what you're learning
01:45:33
today, if you use this stuff, it will
01:45:36
change your life.
01:45:40
That's the power of Tony. And people go,
01:45:42
you know, whatever it is, your podcast,
01:45:45
your events, Tony's events, my books,
01:45:50
we're just catalysts.
01:45:53
But God
01:45:55
God gave you a seed and a dream. And
01:45:59
when we're the catalyst for like, look,
01:46:02
go do this. Listen to that voice.
01:46:06
Whoever your God is, that soul that you
01:46:07
hear yourself saying, I have a dream. If
01:46:09
I only had 10 years left to live, I
01:46:11
would really hate to die with that dream
01:46:15
inside me. That's the dream you go work
01:46:17
on.
01:46:19
>> And since then, you've done exactly
01:46:21
that. You've educated hundreds of
01:46:23
millions of people through your books,
01:46:25
through podcast, seminars, newsletters,
01:46:27
and thousands of media appearances on
01:46:30
how to do exactly that. How to get
01:46:31
financially free, pursue their dreams,
01:46:33
get hold of their money so that they can
01:46:35
live the life that is um destined for
01:46:37
them. And that is an incredible thing.
01:46:39
And you've sold almost 10 million copies
01:46:41
of your books worldwide. I'm sure you're
01:46:42
going to hit that number at some point
01:46:44
soon. And uh I guess you'll never get to
01:46:47
see the impact that that's had on so
01:46:48
many people's lives and how you've
01:46:49
therefore changed the trajectory of
01:46:51
their financial future and their kids
01:46:52
and their kids and their kids like your
01:46:54
grandmother did for you and your family.
01:46:57
I'd highly recommend everybody go and
01:46:58
listen to that episode. I'm actually
01:46:59
going to link it below. So if you
01:47:00
haven't listened to the episode with
01:47:01
Tony Robbins, that's a great next thing
01:47:03
to do if you're still listening now. But
01:47:05
uh David, I wanted to thank thank you so
01:47:06
much for coming and uh you present a
01:47:08
really interesting different perspective
01:47:09
on the subject of money which is is hard
01:47:12
to find. It's rare um but it's very very
01:47:14
very important and I'm hopefully it'll
01:47:16
be consequential for many. We have a
01:47:18
closing tradition as you know um where
01:47:20
we ask the next guest the question left
01:47:22
by the last and the question left for
01:47:24
you is
01:47:26
interesting. If you had all the money
01:47:28
you needed to have to support yourself
01:47:30
and your family, zero financial
01:47:34
worries, what job profession would you
01:47:37
be doing? Or rather, what would you
01:47:40
spend your time on?
01:47:44
>> That's surreal that this is the question
01:47:46
you're giving me that that was asked
01:47:49
before I got here. Like that's that's a
01:47:50
God moment, too. Like that's meant to
01:47:52
be.
01:47:52
>> This is, by the way, I'm not making this
01:47:53
up.
01:47:54
So,
01:47:56
cuz that's me. I have enough. I have all
01:47:59
the money that I need. I have my health
01:48:01
right now. I have my time. And this
01:48:04
year, what am I going to what what I
01:48:05
want to go do my dream for the year? I
01:48:07
want to have an endless ski season. So,
01:48:10
at the end of the year, ask me, did I
01:48:12
ski somewhere every month this year? I
01:48:14
leave you today. I go back to Florence
01:48:17
for 24 hours and I turn around, go to
01:48:18
Verbier, Switzerland with friends. I'm
01:48:20
going to try to ski somewhere every day,
01:48:22
every month this year with friends and
01:48:25
with family all around the world for
01:48:27
fun. I did this as my last dream to help
01:48:31
one more generation be smart with their
01:48:33
money. This is my final book. This may
01:48:35
be my final podcast. And what you've
01:48:37
done is you've updated your smash hit
01:48:41
best-selling book that's that sold
01:48:43
millions and millions and millions of
01:48:44
copies that you wrote 20 years ago to
01:48:46
make it relevant to the current
01:48:48
financial situation and world that we
01:48:49
live in.
01:48:50
>> And my goal with this was a lot of my
01:48:52
readers now in their 50s and their 60s,
01:48:53
but they've got young kids like I do and
01:48:55
I wanted this to be a book they can put
01:48:57
in their hands.
01:48:58
>> I'm going to link the book below.
01:48:59
Fantastic read. You've written several
01:49:01
incredible books. So, it's I'm going to
01:49:03
link all of them below in the
01:49:04
description for anyone that wants to
01:49:05
grab a copy of them. The Automatic
01:49:08
Millionaire, a powerful one-step plan to
01:49:10
live and finish Rich.
01:49:13
David, thank you.
01:49:14
>> Stephen, thank you. It's been great.
01:49:16
>> I'm going to show you how to get clear
01:49:17
on what you really want, figure out
01:49:19
what's been stopping you, put the plan
01:49:20
in place, and teach you the most
01:49:22
important thing that's made me
01:49:23
successful.
01:49:24
>> And I don't think people fully realize
01:49:25
the significance of how many of the most
01:49:27
influential people on planet Earth you
01:49:29
have worked with and continue to work
01:49:30
with. What is the pattern that you
01:49:32
noticed in those people?
