How I Would Invest $1000 If I Were In My 20's Ep 430



In the podcast, the host discusses the importance of investing in oneself to increase earning capacity, using examples like a phlebotomy certification to illustrate the potential for income growth through education and skill acquisition. The host emphasizes that instead of traditional investments like the S&P 500, young entrepreneurs should invest excess money into learning and mentorship to enhance their skills and value in the marketplace. He advises living frugally and allocating savings to education, which can lead to exponential wealth growth compared to standard investments. Additionally, the host suggests seeking established and credible sources for learning, replicating successful strategies before innovating, and understanding that no single course or mentor will have all the answers. Ultimately, the host encourages a focus on self-improvement and skill stacking to achieve financial success and entrepreneurship.

Summary Notes

Personal Ownership and Customer Perspective

  • Recognizing oneself as the owner of their personal career, whether as a business owner or an employee.
  • Employees should view their employers as their customers.
  • Business owners have two types of customers: those who pay them and those they pay.

If you're an employee, your customer is your boss and the business. This quote emphasizes the concept that employees should see their relationship with their employers as a service provider-customer dynamic.

And to be fair, if you're a business owner, you have two customers. You have the customers who pay you and the customers you pay. This quote outlines the dual customer relationship that business owners have, highlighting the importance of managing both incoming and outgoing business relationships effectively.

Investment in Self-Education Over Traditional Investments

  • Traditional investments like the S&P 500 or real estate can yield returns if done over a long period.
  • Investing in assets may signal a shift from seeking to increase income to settling for long-term, passive growth.
  • The speaker advocates for investing in self-education to increase earning capacity, which can lead to wealth generation.

If you invest in the S&P 500, you invest in real estate, things like that, you start really early and you do it for a long period of time, you absolutely will make money. This quote acknowledges the validity of traditional investment strategies but sets the stage for an alternative approach.

The moment you start investing in kind of the asset side of stuff... is actually the moment in my belief that you're actually ceasing to want to make more income. Here, the speaker challenges the traditional investment mindset, suggesting that focusing on asset investment may indicate a lack of desire to actively increase one's income.

The Value of Problem-Solving and Charging for Solutions

  • Earning potential is tied to the ability to solve problems and provide value in the marketplace.
  • The larger the problem solved, the greater the potential income from the solution provided.
  • Wealth is generated through the creation of value, whether through services or products.

Your ability to earn money, to provide value to the marketplace and solve problems for other people is how you will be able to make money. This quote highlights the core principle that earning capacity and wealth are directly linked to the value one can provide through problem-solving.

The Case for Aggressive Investment in Self-Education

  • The speaker advocates for living frugally and investing all excess money in self-education.
  • Education can increase earning capacity significantly, as illustrated by the example of becoming a phlebotomist.
  • The speaker suggests focusing on active income generation through education and skill acquisition.

Live as cheap as you can, take 100% of that excess money and invest it in education. That increases your earning capacity. This quote encapsulates the speaker's aggressive stance on self-investment, emphasizing the importance of education in increasing one's financial prospects.

Real Estate as Active Income

  • Real estate investment should be approached as an active income source, not just passive.
  • Wealth generation in real estate comes from active involvement and expertise in the industry.
  • The speaker debunks the myth of passive income in real estate by highlighting the work involved in successful real estate investing.

Everybody who builds their wealth in real estate is in real estate, and they are actively spending their time in real estate. This quote clarifies the misconception about passive income in real estate, emphasizing that successful investors are deeply involved in the day-to-day activities of the industry.

Wealth Building Strategies for Entrepreneurs

  • The speaker emphasizes the importance of investing in oneself rather than traditional education for entrepreneurs.
  • They suggest reallocating funds typically used for a college degree towards self-education in skills that directly contribute to earning potential.
  • They argue that this approach will likely yield a return on investment faster than a traditional four-year degree.
  • The speaker advocates for spending on mentorships, coaching, and courses that are directly applicable to one's entrepreneurial goals.
  • They highlight the concept of borrowing money from your future self to invest in skills that will increase your earning capacity in the short term.

"Let's say that you take that $2,000 a month and you do that for four years, okay? And you spend $2,000 every month, and you do it on spending, on education that you think will make you money."

This quote suggests that the speaker believes investing $2,000 monthly in targeted education over four years will lead to greater wealth than a traditional college degree.

"Honestly, you'll probably start making money by the end of the first year, right?"

The speaker is confident that with the right investment in self-education, one can start seeing financial returns within the first year.

"The difference is when you make that payment, you're seeing it as one class in your entrepreneurial degree rather than this 112 thousand dollars investment has to make me rich."

The speaker emphasizes the mindset shift required to view individual learning investments as part of a broader entrepreneurial education rather than a single, make-or-break financial decision.

Saving and Investing in Personal Development

  • Saving money is highlighted as the first critical step for entrepreneurs.
  • The speaker advises investing the difference between earnings and living expenses in personal development to increase earning capacity.
  • They propose a strategy where increased earnings are reinvested into further education, creating a cycle of growth.
  • The speaker emphasizes the concept of leveraging future earnings to acquire valuable skills in the present.

"The first step is save as much money as you can. The second step is that you take the excess between what you earn and what you need to live on, and you invest at an increase in your earning capacity."

This quote outlines a two-step strategy for financial growth: saving and then investing in skills that will increase one's earning potential.

"It makes complete sense to borrow money from your future self to acquire skills today."

The speaker advocates for the strategic borrowing of money to invest in skills that will quickly increase income, thus paying off the borrowed amount and benefiting from higher earnings sooner.

The Power of Compounding Skills and Earnings

  • The speaker discusses the concept of compounding one's skills and earnings at a faster rate than traditional investments like the S&P 500.
  • They mention the potential to double, triple, or even tenfold one's earning capacity through strategic skill acquisition.
  • The speaker compares the exponential wealth growth of the richest individuals to the average person, attributing it to leverage and playing a different game.
  • The recommendation is to invest in oneself (referred to as "S&Me") to achieve faster and greater returns than stock market investments.

"The more money you spend on it, the faster it's going to happen for you."

This quote suggests that as one's income grows through investing in personal development, further investment will accelerate growth even more.

"Instead of going for the S&P, go for the S&Me. If you do that, I promise you'll beat the stock market every time."

The speaker encourages investing in oneself rather than traditional stock market investments, asserting that it will yield better returns.

Selecting Credible Sources for Entrepreneurial Education

  • The speaker advises on how to identify trustworthy sources for entrepreneurial learning.
  • They suggest that longevity, a large number of reviews, and size are indicators of credibility and value.
  • The speaker acknowledges that while bigger companies may not always offer the most cutting-edge information, they provide a lower risk of poor quality based on their track record.

"One is the easiest thing to do is look at the people who've been there the longest, who have the most reviews and honestly are the biggest."

This quote provides guidance on selecting educational resources, suggesting that established and well-reviewed entities are often the most reliable.

"The safest bet is to go for the thing that's been there the longest because they have still universally shown that they provide value."

The speaker reinforces the idea that longevity in the marketplace is a strong indicator of a source's ability to provide value to entrepreneurs.

Risk-Adjusted Decision Making

  • Evaluating the likelihood of success versus the risk of failure.
  • Preferring a more certain good outcome over a high-risk gamble.
  • The speaker suggests going with established, reliable sources.

"And so on a risk adjusted basis, I'd rather say, like, there's a 70% shot that this is a good thing. And so I'd rather take a seven than have the risk of getting a zero or a ten."

The quote explains the concept of risk-adjusted decision making, where a moderately good but more certain outcome is preferred over a gamble that could result in a very high or very low outcome.

Adjusting Expectations in Learning

  • Understanding that no single source will be a panacea for all problems.
  • Learning from both positive and negative experiences.
  • The importance of having a realistic perspective on what to expect from educational sources.

"The next one is that you have to shift your expectations around it. And this is the biggest piece here, is that you're not paying someone to think that they're going to be your savior."

This quote emphasizes the need to adjust one's expectations when seeking knowledge or mentorship, recognizing that no one can save you from your life's challenges except yourself.

Value in Negative Examples

  • Negative experiences can be educational.
  • Learning what not to do is as valuable as learning what to do.
  • The speaker advocates for adopting a mindset of learning from every situation, regardless of its perceived value.

"The worst courses that I have taken, I have learned what not to do."

This quote illustrates the idea that there is educational value in negative examples, as they can teach what to avoid in the future.

Being the Best Student

  • Committing to being the most diligent and effective learner in any educational setting.
  • The speaker stresses the importance of execution and application of learned material.
  • The concept of 'out executing' implies putting knowledge into practice to fully understand it.

"I always think to myself, like, I'm going to be the number one student here, always. And the way that I'll do that is by out executing, I'll just do whatever they say and then I'll see what happens."

The quote conveys the speaker's personal strategy for learning, which involves a proactive and execution-focused approach to being the top student in any educational context.

Replicate Before You Iterate

  • The importance of mastering the basics before attempting to innovate.
  • The speaker advises to first copy what is being taught before adding personal modifications.
  • Mastering the original method grants the 'right' to adapt and iterate.

"Try and copy what they're doing first. Duplicate, replicate what they're doing before you iterate."

This quote highlights the learning strategy of replication before innovation, suggesting that one should first learn to duplicate a successful method before trying to modify it.

No Single Source of Complete Knowledge

  • Recognizing that no single person or source will provide all the knowledge needed.
  • The speaker suggests viewing education as a collection of insights from multiple sources.
  • The analogy of a bridge with many bricks represents the incremental nature of learning.

"No one person is going to teach you everything, right? I'll do my best on this channel and teach you the stuff I know."

The quote reinforces the idea that knowledge comes from a variety of sources and that one should not expect to learn everything from a single individual or channel.

Skills Before Dollars

  • Measuring progress in terms of skill acquisition rather than immediate financial gain.
  • The speaker warns against the temptation to abandon incomplete projects for new ones.
  • Progress should be viewed as building a bridge to one's goals, brick by brick.

"And so you have to start measuring progress in terms of skills before you can measure it in terms of dollars."

This quote advises that true progress is measured by the skills one acquires, which are the foundation for future financial success, rather than immediate monetary returns.

Educational Pipeline and Focus

  • The necessity of a sequential approach to learning and building a business.
  • Identifying and focusing on the missing 'bricks' or skills needed to progress.
  • The speaker outlines a pipeline from having an offer, to making it known, to selling it, and finally to fulfilling it.

"So it's like, all right, the first thing I'm going to do, have an offer. That's why we have the book, 100 million dollar offers. Figure out the thing you want to sell."

The quote emphasizes the first step in the educational pipeline for building a business, which is to determine a compelling offer to sell.

Jack of All Trades, Master of None

  • Being a business owner requires a broad skill set to navigate different challenges.
  • Mastery of every skill is not necessary, but a functional level of proficiency is important.
  • Recognizing good and bad outcomes is essential for business survival and growth.

"As a business owner, you kind of need to be a jack of all trades, master of none, right?"

This quote highlights the importance of versatility in business ownership, emphasizing the need for a broad range of skills rather than deep expertise in one area.

The Concept of "You, Inc."

  • Regardless of being an employee or a business owner, individuals should view themselves as their own enterprise.
  • Employees have internal customers, such as their bosses and the company at large.
  • Business owners have external customers who pay them and internal customers (employees) whom they pay.

"Whether you are a business owner or you're an employee, you are the owner of you and you have customers."

The quote encapsulates the idea that individuals must manage their skills and responsibilities as if they were a business, serving customers who can be either employers or clients.

Parallel Processes in Business and Employment

  • Acquisition, nurturing, and retention processes are similar for both customers and employees.
  • Both business owners and employees engage in similar processes but with different targets and outcomes.
  • The skills and strategies used for customer acquisition and talent recruitment are transferable.

"You have to have acquisition channels for recruiting talent just like you have acquisition channels for recruiting customers."

This quote draws a parallel between the methods used for attracting customers and recruiting employees, suggesting they are fundamentally similar.

Skill Stacking and Career Growth

  • Employees should aim to acquire adjacent skills to become more valuable.
  • As one moves up in an organization, their scope of work broadens, necessitating a wider skill set.
  • Skill stacking leads to exponential growth in value and can lead to significant career advancement.

"Skills stack exponentially. And so imagine this human being. You got a video skill. Now you got an editing skill. Now you understand social media."

The quote exemplifies the concept of skill stacking, where acquiring related skills can lead to a compounded increase in value and career opportunities.

The Entrepreneurial Journey

  • The entrepreneurial path often begins with deep specialization and gradually expands into broader business knowledge.
  • Entrepreneurs benefit from understanding various aspects of business, leading to innovation and the creation of new ideas.
  • The process of expanding one's skill set can transform an individual from a specialist to an entrepreneur.

"And then all of a sudden, you're an entrepreneur."

This quote summarizes the transition from being a specialist in a particular field to becoming an entrepreneur with a broad and deep understanding of multiple business areas.

Education and Value in Learning

  • When seeking education, individuals should look for providers who offer substantial value for free.
  • Consuming free content reduces the risk associated with purchasing educational products.
  • Following multiple educators in a space can provide a well-rounded perspective and knowledge base.

"And so it's the easiest way for you to decrease your risk of purchase."

The quote advises on the strategy of engaging with free content as a way to assess the value of potential educational investments.

Individuality and Market Appeal

  • People have diverse values and preferences, which is reflected in the market.
  • Individuals should seek out content and educators that resonate with their personal style and learning preferences.
  • There is value in exploring different approaches within the same industry to find the best fit.

"People have different values. They have different vibes. They have different psychographics they appeal to."

This quote acknowledges the diversity of the market and the importance of aligning with educators or content that match one's individual preferences and learning style.

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