How to Identify How Wealthy Someone is Going to Be Ep 641

Summary Notes


In a thought-provoking discussion, Speaker A underscores the importance of leveraging larger units of measurement in both money and time to achieve wealth and success. By associating with individuals who think in terms of bigger monetary units, one's financial perspective can scale accordingly. Speaker A also emphasizes the significance of speed in executing tasks and long-term vision, suggesting that wealthy individuals act quickly on a micro-level and plan over decades rather than days on a macro-level. Speaker B, sharing his ambition of building a billion-dollar enterprise with, expresses a desire for successful figures like Bezos, Musk, and Buffett to have documented their journeys, which he intends to do for others. Both speakers encourage sharing the podcast to support fellow entrepreneurs, highlighting word-of-mouth as their sole promotional tool.

Summary Notes

Wealth Education Differences Between Rich and Poor Dads

  • Rich dads teach their kids to pursue high leverage opportunities with larger monetary units.
  • They focus on compiling bigger base units of money.

"The difference between rich dads and poor dads and what they teach their kids is that rich dads in general will teach their kids to go after higher leverage opportunities. They'll go after opportunities that have bigger base units of measurement, bigger base units of money that they can compile together."

This quote emphasizes the teaching methods of affluent parents, who encourage their children to seek out opportunities that can generate substantial wealth through leverage and scale.

The Game of Business and Wealth

  • The discussion is centered around selling more, reaching more people, and building valuable businesses.
  • Speaker B expresses a desire to document the journey of building a billion-dollar enterprise.

"Welcome to the game, where we talk about how to sell more stuff to." "More people in more ways and build businesses worth owning."

These quotes introduce the podcast's theme, which is about strategies for business growth and wealth accumulation.

Documenting the Entrepreneurial Journey

  • Speaker B wants to create a record of their entrepreneurial journey akin to what they wish Bezos, Musk, and Buffett had done.
  • The purpose is to provide insights and guidance for others.

"I always wish bezos, Musk, and Buffett had documented their journey." "So I'm doing it for the rest of us."

Speaker B expresses regret that some of the world's most successful entrepreneurs didn't document their paths to success, indicating their intention to fill that gap for the benefit of others.

Predicting Future Wealth Based on Character Traits

  • Speaker A suggests that certain character traits can predict future wealth.
  • These traits are related to one's perspectives on time and money.

"I'm going to give you two ways to identify how wealthy someone else is going to be in the future and how you can align yourself with those individual character traits."

This quote sets the stage for a discussion on the characteristics that can indicate an individual's potential for future wealth.

The Concept of Measuring Sticks

  • The measuring stick concept is about the base units people use to value things.
  • People's financial perspectives can evolve from small units (like Chipotle burritos) to larger units (like businesses).

"And so one of the things that's interesting about this is the concept of measuring sticks. And so a lot of us have these base units that we measure things in, and it's kind of like shorthand that you use in your brain." "So, when I was in high school, I used to measure how much money something was by the amount of Chipotle burritos I could buy." "And so the bigger the people that you hang around with, the bigger the unit of money that they will measure things in, in terms of, like, base units."

These quotes explain how individuals use familiar items as a benchmark to gauge value and how this benchmark evolves as they grow wealthier and associate with wealthier individuals. The progression from small to large units of measure reflects one's growing financial sophistication and goals.

Concept of Money Units and Wealth Mindset

  • Understanding the unit of measurement for money is crucial in the financial world.
  • Wall Street professionals often use the term "stick" to refer to a million dollars.
  • People's perception of money and the opportunities they pursue are influenced by their base unit of measurement.
  • Rich individuals typically think in larger units, which leads to seeking higher leverage opportunities.
  • The unit of measurement a person uses can be an indicator of their wealth and financial goals.
  • By associating with people who think in larger money units, one's own financial perspective can scale up.

"And a stick is their measuring unit, which is a million dollars."

This quote explains the jargon used by Wall Street professionals where "stick" represents a significant sum of money, demonstrating how accustomed they are to dealing with large amounts of capital.

"So they're like, yeah, give them a stick or put two sticks in."

This quote illustrates the casual manner in which large sums of money are discussed among these professionals, indicating their comfort with high-stakes investments.

"And so if you can hang around people whose base unit of measurement, around money is far greater than yours, then you will start chunking up and thinking about money in those greater terms."

This quote suggests that one's financial mindset can be influenced by their social circle, particularly if that circle operates with a larger monetary base unit.

"And the difference between rich dads and poor dads and what they teach their kids is that rich dads in general will teach their kids to go after higher leverage opportunities."

This quote highlights the idea that financial literacy and ambition are often passed down from parents to children, with wealthier parents encouraging the pursuit of more significant financial opportunities.

The Importance of Word of Mouth for Podcast Growth

  • The podcast discussed relies solely on word of mouth for its growth.
  • There are no ads, sponsorships, or sales involved in the podcast's promotion.
  • The speakers express gratitude for the listeners' support and encourage them to share the podcast with others.
  • Sharing the podcast is seen as a way to generate good karma and help other entrepreneurs.

"The only way this grows is through word of mouth."

This quote emphasizes the podcast's reliance on organic growth through listeners' recommendations rather than traditional advertising methods.

"My only ask is that you continue to pay it forward to whoever showed you or however you found out about this podcast, that you do the exact same thing."

This quote is a call to action for listeners to promote the podcast in the same way they discovered it, fostering a community of sharing and support.

"So if it was a review, if it was a post, if you do that, it would mean the world to me, and you'll throw some good karma out there for another entrepreneur."

This quote expresses the speaker's appreciation for any efforts to spread the word about the podcast and suggests that such actions have a positive ripple effect within the entrepreneurial community.

Effective Time Utilization

  • Successful individuals and entrepreneurs often demonstrate superior time management skills both on a micro (daily) and macro (long-term) scale.
  • On a micro level, these individuals show a rapid speed of execution, which is evident in their quick communication and response times.
  • This quick turnaround in communication and action allows for a more active and effective approach to tasks and projects.
  • By compressing the time needed to achieve results, successful people can accomplish in a day what might take others a month or more.
  • The concept of time compression is crucial, as it involves bringing the future into the present by increasing the speed of action and communication.

"And then on the macro side, and this is to go back to iron out the first point. On the micro side, it's just about speed. It's about execution speed."

This quote emphasizes the importance of speed on a micro level, which pertains to the daily actions and interactions that contribute to overall productivity.

"And now if you look at the difference between a 30 minutes and ten days, it dramatically compresses the time to achieve the result."

The quote highlights the significant impact that efficient time management can have on the timeline of a project, demonstrating the ability to dramatically reduce the time from initiation to completion.

"And you can drag your future into the present by increasing the speed with which you take action and you communicate with other people."

This quote encapsulates the concept of time compression, where increasing the speed of actions and communication can result in achieving future goals in the present.

Setting Immediate Goals as Default

  • Shifting the default deadline from the end of the week to the end of the day, or even a few hours from the current time, can create a sense of urgency and focus within a company or for an individual.
  • By changing the default timeframe, individuals and organizations can foster a culture that prioritizes immediate action and results.
  • This strategy can lead to increased productivity and a more efficient use of time, as tasks are completed more quickly and effectively.

"I made a video about this, but it's the idea of switching from end of week being your default to switching to end of day or right now being your default."

The quote suggests a shift in mindset and organizational culture towards setting more immediate deadlines, which can lead to enhanced productivity and time management.

"So how can I just make the default in my company end of day? Like, if no one says anything it has to be done by end of day, or how can I say that my new default is by 4 hours from now."

This quote proposes practical ways to implement the concept of immediate goals as a default, encouraging a culture where tasks are expected to be completed by the end of the day or within a few hours without the need for explicit instructions.

Time Perspective and Wealth

  • The speed of getting things done and responding is a new micro measuring step.
  • Wealthy individuals often have a condensed approach to pushing things forward quickly.
  • A person's wealth can be determined by their perspective on time and their patience.
  • Wealthier people tend to have a long-term outlook, thinking in terms of decades rather than days.

"So you want to deal with people who have very condensed micro push things forward in terms of their activities and how they see things getting done."

This quote emphasizes the importance of associating with people who are efficient and proactive in their activities, as it can influence one's own productivity and success.

"On the macros perspective, it's when people are talking about decades and not days, right? And so you can tell how wealthy someone is by their perspective on time in terms of how long they are willing to wait to see something through."

The quote suggests that a long-term perspective on time is indicative of wealth, as wealthy individuals are willing to invest time and wait to see their efforts come to fruition.

The Marshmallow Test and Impulse Control

  • The marshmallow test is a psychological experiment that measures children's ability to delay gratification.
  • Children who could wait for a larger reward tend to be more successful later in life.
  • The ability to delay gratification is linked to impulse control, which is a key driver of success.
  • Success often requires a long-term vision and the patience to build something significant over time.

"And so this is kind of like a very extrapolated version of the marshmallow test."

This quote draws a parallel between the discussed concept of time perspective and the marshmallow test, suggesting that the ability to wait is a broader indicator of future success.

"And that is because impulse control or self restraint is one of the key drivers of success, because you can see where you're trying to go, and it takes, from a macro perspective, a long time to build amazing things, right?"

The quote explains that self-restraint is crucial for success because it allows individuals to focus on long-term goals and invest the necessary time to achieve something remarkable.

Surrounding Yourself with Success

  • Surrounding oneself with people who use larger monetary measuring sticks can be beneficial.
  • Associating with people who have shorter micro units of time can lead to quicker accomplishments and communication.
  • Measuring life goals in decades instead of shorter time frames can lead to greater success.
  • Adopting a perspective that includes both micro efficiency and macro patience can accelerate progress toward one's goals.

"And so if you surround yourself with people who use measuring sticks of money that are significantly larger than yours, they have micro units of time that are significantly shorter than yours."

This quote suggests that being around people who think bigger in terms of finances and are more efficient with their time can positively influence one's own habits and success.

"You will be significantly better off and you will move far more rapidly towards the goals that you want to achieve."

The quote concludes that adopting the strategies of successful people, such as efficient time management and long-term goal setting, will lead to a more rapid advancement toward achieving personal goals.

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