Untitled Document

[00:00:00] Well folks, as you may have noticed in [00:00:01] the online space, there are a lot of [00:00:02] people who don't seem to understand [00:00:04] wealth creation. [00:00:05] >> Where do you think [00:00:07] >> wealth [00:00:08] >> come from [00:00:10] uh [00:00:10] >> or how to save or you know the basic [00:00:12] building blocks of capitalism and so [00:00:14] they turn to communism and socialism and [00:00:16] zor mammiism and all the rest [00:00:18] >> socialism? [00:00:19] Well, it turns out that actually [00:00:21] building wealth in the United States, it [00:00:23] is not only doable, it is very doable if [00:00:26] you get the right advice. Today we're [00:00:27] going to go through some of that [00:00:28] internet advice with you. [00:00:33] >> Can I teach you something real quick? [00:00:35] >> What? [00:00:36] >> Have an emergency fund. [00:00:37] >> They didn't know what it was until [00:00:38] >> I didn't know what that with her. She's [00:00:40] known it forever. So that kind of pisses [00:00:42] me off, too. [00:00:42] >> How much was it? [00:00:43] >> It was $2,000,000. [00:00:44] >> Okay. So, you didn't have an emergency [00:00:45] fund. You had like the building blocks [00:00:46] of an emergency fund. [00:00:47] >> My parents taught me to have $1,000 [00:00:49] emergency fund. And [00:00:50] >> Oh, your parents are stupid, though. [00:00:52] >> Well, they have a,000 per person in [00:00:53] their household. [00:00:54] >> That's the stupidest thing I've ever [00:00:55] heard in my life. And then I've heard [00:00:56] like six months worth of your income. [00:00:58] >> That's correct. [00:00:59] >> Okay. [00:00:59] >> Thousand. What is anyone going to do [00:01:00] with $1,000? [00:01:01] >> It's enough to get new tires or fix a [00:01:03] broken leg. [00:01:04] >> Dude, medical things are everywhere. [00:01:05] It's going to depend on your insurance [00:01:06] and what hospital you go to. Are you in [00:01:08] network? Are you out of network? That's [00:01:09] not even close to true. Tire. Sure. Is [00:01:12] that the only emergency that exists in [00:01:13] this world? [00:01:14] >> Obviously, he is correct that if you're [00:01:15] going to have an emergency fund, meaning [00:01:17] some sort of cushion in case you lose [00:01:18] your job or something, 1,000 bucks ain't [00:01:20] going to do it. That's going to pay for [00:01:21] like a week and a half of groceries at [00:01:23] this point. So, yeah, it's going to need [00:01:24] to be a little more than that. [00:01:27] >> In investing, there's no called strikes. [00:01:30] People can throw Microsoft at me and, [00:01:32] you know, you name it, any any stock, [00:01:34] General Motors, uh, and I don't have to [00:01:37] swing. I only get a strike called if I [00:01:40] swing at a pitch and miss. So, I can [00:01:42] wait there and look at thousands of [00:01:44] companies day after day, and only when I [00:01:47] see something I understand, and when I [00:01:49] like the price at which it's selling, [00:01:50] then if I swing, if I if I hit it, fine. [00:01:52] If I miss it, it it's it's it's a [00:01:55] strike. But it's an enormously [00:01:57] advantageous game. And it's a terrible [00:01:59] mistake to think you have to have an [00:02:01] opinion on everything. You only have to [00:02:03] have an opinion on a few things. In [00:02:05] fact, I've told students if when they [00:02:08] got out of school, they got a punch card [00:02:10] with 20 punches on it and that's all the [00:02:13] investment decisions they got to make in [00:02:14] their entire life, they would get very [00:02:16] rich because they would think very hard [00:02:18] about each one. And you don't need 20 [00:02:21] right decisions to get very rich. You [00:02:23] know, four or five will probably do it [00:02:25] over time. [00:02:26] >> He is so right about this. This is such [00:02:27] a great point. People look at the stock [00:02:30] market and they see something soaring [00:02:31] like, man, I missed out on Nvidia. [00:02:33] What's the next Nvidia? And then [00:02:35] somebody presents them a list of the 10 [00:02:36] next Nvidas. They're like, "Well, I got [00:02:37] to take out like three of these." And [00:02:38] maybe one of them, or maybe you don't. [00:02:40] Maybe you just need to find the ones [00:02:41] that you think are fundamentally sound [00:02:42] with good leadership and excellent [00:02:44] profit margins and you think, "Hey, [00:02:46] maybe that's the one I'm going to invest [00:02:48] in." It's not about taking a lot of [00:02:50] swings and then hitting some of them, [00:02:52] right? This is his point. If you're [00:02:54] going to be judged on on how you hit in [00:02:56] the financial markets, yeah, there's [00:02:58] sort of the aggregate how many swings do [00:03:00] you take, how many are strikes, how many [00:03:01] are hits, and the rest of it. But his [00:03:03] point is you can really have a high on [00:03:05] base percentage by simply waiting for [00:03:07] your pitch. Just wait for your pitch. [00:03:12] Poor people that are playing the lottery [00:03:14] are stupid. You're stupid. Well, that's [00:03:16] the only way I'm getting out. Listen, if [00:03:17] you walk from your house one mile to the [00:03:20] market to buy a lottery ticket, you are [00:03:22] 12 times more likely to be struck by [00:03:24] lightning twice than to buy the ticket. [00:03:26] That's the probability of you winning. [00:03:28] That's a statistical fact that is not [00:03:31] going to occur in your life. But if you [00:03:33] invest $35 instead of wasting it. Yes, [00:03:36] this is this is right. Of course, this [00:03:37] is right. One of the most incredible [00:03:39] things about the lottery is that it is [00:03:41] disproportionately people who do not [00:03:43] have money who buy tickets for the [00:03:45] lottery. Like actually there's studies [00:03:48] showing that people who are very very [00:03:49] low income spend an extraordinary [00:03:50] disproportionate [00:03:52] part of their income on lottery tickets. [00:03:54] And that's terrible. It it truly is. You [00:03:57] can't afford to do that. When people [00:03:59] say, "Well, you have to play the lottery [00:04:00] in order to win." Your chances of [00:04:01] winning are so low. You have virtually [00:04:04] flushed your dollar down the toilet. [00:04:08] I can walk around with anybody for a day [00:04:10] and show you that they're wasting 15% of [00:04:12] their money, sometimes 20. Stupid stuff. [00:04:15] You know, you go to work, you spend 15 [00:04:16] bucks on a sandwich. What are you, an [00:04:18] idiot? It cost you 99 cents to make a [00:04:20] sandwich at home and bring it with you. [00:04:21] Bring your own water if you have to or [00:04:23] your own drink or bring your own coffee [00:04:24] mug. You start to add that up every day, [00:04:27] it's a ton of money. Most people, [00:04:28] particularly working in metropolitan [00:04:30] cities that are just starting out on [00:04:31] their job, making their first 60,000, [00:04:33] piss away about 15,000 a year on stupid [00:04:36] stuff. This is definitely true that if [00:04:37] if you are really looking at the [00:04:39] beginning of your of your life at [00:04:40] scrimping and saving and trying to make [00:04:43] good, you of course have to look at your [00:04:44] daily expenses and and where you're [00:04:46] spending too much money. The first rule [00:04:48] about getting rich is don't get poor. [00:04:50] And so if you're making decisions that [00:04:51] are likely to make you significantly [00:04:52] poorer, that's a problem. Now again, as [00:04:54] you rise in the income ladder, you can [00:04:56] use more of your money on discretionary [00:04:57] income. My wife and I eat out a lot more [00:04:59] than we used to when we didn't have [00:05:01] nearly as much money. That's just [00:05:02] something you can do when you make more [00:05:03] money. But when you're first starting [00:05:04] out, yeah, you're going to eat at home a [00:05:06] lot. You're going to make a lot of [00:05:07] homepacked lunches. He's right about [00:05:08] that. Of course, [00:05:09] >> poor people usually spend their money [00:05:14] and invest what's left. [00:05:17] That's the philosophy of the poor. Now, [00:05:20] here's the philosophy of the rich. Rich [00:05:22] people invest their money and spend [00:05:25] what's left. And here's the startling [00:05:28] answer. It really doesn't matter what [00:05:30] the amount is. What's most important is [00:05:33] not the amount. What's really important [00:05:35] is the philosophy. So I would ask you to [00:05:38] adopt this philosophy of spending [00:05:42] after you have invested. Invest first [00:05:45] then spend. [00:05:46] >> Yeah. The the reason that he is saying [00:05:47] this and again this is a good piece of [00:05:48] advice is because if you think first [00:05:50] about spending and then you think okay [00:05:52] what whatever is you know left in the [00:05:53] piggy bank after I've had my good time [00:05:55] I'm going to invest. You're going to [00:05:56] overspend. If you take the investment [00:05:59] portion and put it aside, even if it's [00:06:00] 10%. [00:06:02] Then what you're doing is you are making [00:06:03] sure that money goes in. And once the [00:06:05] money is in the investment pool, then it [00:06:08] can grow. Whatever you think of as your [00:06:09] first priority is where you're likely to [00:06:11] spend more money than you thought you [00:06:12] were going to. So if you spend it on [00:06:14] investment, because that is a form of [00:06:15] spending, then you are likely to have [00:06:17] more investments. [00:06:18] >> So do you make money off of OAF? [00:06:20] >> I was making like 3,200 a month since [00:06:22] like 2018, probably. [00:06:24] >> Is it full on? [00:06:27] Yeah, [00:06:27] >> you can never take that back. [00:06:29] >> Do I look like I care about myself? [00:06:30] Caleb, look at me in the eyes and tell [00:06:32] me if it looks like I care about myself. [00:06:33] Now I have two men that I sell to and [00:06:37] they're my primary source of income. [00:06:38] >> There's no way they don't have an [00:06:40] incredibly parasocial relationship. [00:06:42] >> Oh, they do. They both think that I'm [00:06:44] like their best friend. One of them is [00:06:45] in the military, so there's already [00:06:47] something wrong with him. Like that [00:06:48] military kind of guy that's like, I need [00:06:50] a wife and I need a baby. [00:06:51] >> And does he think that's going to be [00:06:52] you? [00:06:52] >> Yes, but it's not. I don't know how to [00:06:54] tell him that. Well, this seems pretty [00:06:56] terrible. Pretty the financial advice on [00:06:58] as a piece of life advice. She says, "Do [00:07:00] I look like I respect myself?" You [00:07:02] should [00:07:02] >> have some respect for yourself. [00:07:05] >> God gave you a soul and you shouldn't [00:07:07] sully it by disrespecting yourself as a [00:07:09] human being. That's pretty terrible. And [00:07:11] of course, disrespect of yourself does [00:07:12] lead to disrespect of others. We'll get [00:07:14] to more on this in a moment. First, [00:07:15] breaking free from debt means reclaiming [00:07:17] your financial future and keeping more [00:07:18] of what you earn in your own pocket. [00:07:20] Every dollar you put toward eliminating [00:07:21] debt is a dollar that will soon work for [00:07:23] you instead of your creditors. I have a [00:07:25] lot of friends who've gotten into debt. [00:07:27] It is life wrecking. Like truly life [00:07:29] destroying. If you're dealing with [00:07:30] credit card debt, personal loans, [00:07:31] medical bills piling up, our sponsor PBS [00:07:33] deck can actually help. What I like [00:07:35] about them, they don't just look at the [00:07:36] numbers. They take the time to [00:07:37] understand your actual situation and [00:07:39] build a plan that works for you [00:07:40] specifically. No minimum credit score [00:07:42] needed, which is a big one for a lot of [00:07:44] people. Their goal is simple. help you [00:07:45] pay off debt faster so you can keep more [00:07:47] of your hard-earned money for the things [00:07:48] that actually matter like your family. [00:07:51] Obviously, if you're stuck in debt and [00:07:53] most of your money is now going to the [00:07:54] credit card companies, you're not going [00:07:56] to have the money to do the things you [00:07:57] want to do to make your life easier, to [00:07:58] make it better for your kids. PBS has an [00:08:00] A+ rating with the Better Business [00:08:02] Bureau. Thousands of five-star reviews [00:08:03] on Google. They've helped hundreds of [00:08:05] thousands of people get out of debt. [00:08:06] Here's the thing. Every month you wait, [00:08:07] you're paying more in interest in fees. [00:08:09] I know life's busy. It's easy to put [00:08:10] this stuff off. The sooner the better. [00:08:12] Don't wait another month. Take back [00:08:14] control in 30 seconds. Get your free [00:08:16] personalized assessment and the best [00:08:17] option for you at pdsd.com/shapiro. [00:08:20] That's pdsd.com/shapiro. [00:08:23] pds debt.com/shapiro. [00:08:25] I have three investments. That's all I [00:08:28] have. My business, paid for real estate [00:08:31] with no mortgages and mutual funds. I [00:08:33] don't play single stocks. I don't screw [00:08:35] around with gold. I don't mess with [00:08:37] Bitcoin. And I don't need your stock tip [00:08:40] from your broke golfing buddy with an [00:08:42] opinion. You know you missed out on [00:08:44] getting in on this deal. Ramsay didn't [00:08:46] miss a thing. I'll set my net worth down [00:08:48] beside yours while you mouth off. [00:08:50] >> Not a bad strategy there. Now, my [00:08:53] investment portfolio is a little bit [00:08:54] more varied. I own some shares of one [00:08:57] particular company, an outsized share of [00:08:59] a publicly traded NASDAQ company. I do [00:09:01] have a stock portfolio that I really am [00:09:04] not in charge of. I delegated to my [00:09:06] financial adviserss. I have some real [00:09:08] estate holdings and but but his kind of [00:09:10] model which is okay there's real estate [00:09:12] that I've paid for so I'm not shelling [00:09:13] out a bunch of money on it right now. I [00:09:15] invest in my business because that's the [00:09:16] place where I make most of my money in [00:09:18] terms of actual income and also where I [00:09:20] could theoretically make money if I [00:09:22] would sell my company. [00:09:24] >> Please, [00:09:25] please don't master. [00:09:27] >> And then I've got my mutual funds, [00:09:28] meaning I'm in the market and I'm [00:09:30] basically going to make money when the [00:09:33] market generally goes up. That's a [00:09:35] pretty solid way to grow your wealth [00:09:37] over a long period of time. [00:09:39] >> What's the best piece of money advice [00:09:41] you've ever gotten? [00:09:41] >> You should just move to Puerto Rico, get [00:09:43] a cash flow business, buy Bitcoin, or [00:09:45] you should hate your life for 10 years [00:09:47] and sell a company. I think that those [00:09:48] are pretty much the two routes. Either [00:09:50] way, you're going to have to do an [00:09:51] insane amount of volume. I think you [00:09:52] should largely ignore other people's [00:09:54] advice. Chat GBT usually has all the [00:09:56] answers and all the ideas. If you're not [00:09:58] getting alpha from ChatGBT, you just [00:10:00] don't know how to prompt it. Every [00:10:01] single piece of advice that you've heard [00:10:02] on a podcast that you're like, "Oh, [00:10:03] that's a gym." Chad GBT would have told [00:10:05] it to you if you would have asked it to [00:10:06] think outside of the box more. [00:10:15] How would you prompt it to get to the [00:10:17] gym? That's sort of the problem. If you [00:10:19] knew the advice already, then you [00:10:20] wouldn't need to prompt Chachi to get [00:10:22] that advice. So, that's sort of a [00:10:23] problem. As far as moving to Puerto [00:10:25] Rico, well, I mean, all he's saying [00:10:26] there is that there are no income taxes. [00:10:28] So, yeah, that is a great way to make a [00:10:30] lot of money. As far as hating your [00:10:32] life, you know, building a company is [00:10:34] not hating your life. It's actually [00:10:35] quite wonderful. I I've I've enjoyed [00:10:37] virtually every aspect of building Daily [00:10:38] Wire. It's been an incredible [00:10:39] experience. If you really want to make [00:10:41] money, you have to find a combination of [00:10:42] the following three things. One, [00:10:43] something you're good at. Two, something [00:10:45] you like to do. And three, something [00:10:46] that people want from you. If you can if [00:10:48] you can get all three of those things, [00:10:50] then you're going to do great. You're [00:10:51] going to do great. [00:10:52] >> You're going to do great. [00:10:55] >> People who have only two, you can, you [00:10:57] know, get somewhat wealthy. But the the [00:10:58] people that I know who have gotten [00:11:00] extraordinarily wealthy, I'm talking [00:11:01] about like the richest people on earth [00:11:03] who I know. Those people all started off [00:11:05] doing a thing that they truly loved and [00:11:07] that they were good at and that the [00:11:09] market wanted from them. That's where [00:11:10] true wealth lies. [00:11:11] >> All the stuff that you've done off the [00:11:13] field, it's it's rumored that you never [00:11:14] spent a dollar of your NFL earnings. Is [00:11:17] that true? [00:11:18] >> Uh technically Drew Rosenhouse actually [00:11:20] gave me a $50,000 upfront like marketing [00:11:22] budget at the beginning and you got to [00:11:24] pay them back over the time the first 50 [00:11:25] grand you made. So, I actually took that [00:11:27] 50 grand. I bought me a car, you know, I [00:11:29] paid for my spot up in New England, [00:11:30] actually with it. I'm very frugal, you [00:11:32] know, and lived, you know, with a [00:11:34] roommate my first couple years. I didn't [00:11:35] know how long the NFL was going to last. [00:11:37] I was a second round pick, so it was [00:11:38] like a 4year $4 million deal. And I was [00:11:40] like, if I play this contract out, I'll [00:11:42] be set for life. I got $2 million in my [00:11:44] bank. I can make$100, $200,000 of [00:11:47] interest. I was like, if I only play [00:11:48] three, four years, I'm good. Like, if [00:11:50] hey, if I don't ball, if I'm not the [00:11:52] player, you know, that I think I could [00:11:53] be, whatever, I'm still set for life. [00:11:55] because 2 million in the bank is set for [00:11:57] life to me. You know, at that time, I [00:11:59] just always wanted to save it and I just [00:12:00] used my money that I was getting off the [00:12:02] field to just spend it on whatever I [00:12:04] needed to spend it on. To this day, [00:12:06] technically, I have not spent any of my [00:12:09] NFL money. [00:12:10] >> Man, he only plays an idiot on TV. Not [00:12:12] terrible advice there from Rob [00:12:14] Gronowski. [00:12:15] >> 90% of us will spend everything that [00:12:17] comes into our hands. So, you want to [00:12:18] find saving mechanisms that keep the [00:12:20] dollar out of your hand. The smartest [00:12:21] people on the planet aren't trying to [00:12:23] put a person on Mars or solve world [00:12:25] hunger. They're trying to figure out a [00:12:27] way to use technology to hit you on a [00:12:29] screen at the exact right moment when [00:12:30] you're in the exact right move so they [00:12:32] can sell you a pair of Bomba socks with [00:12:34] your on running shoes at the exact right [00:12:35] moment or get you to upgrade from [00:12:37] economy to economy comfort. It is nearly [00:12:39] impossible not to spend as much or more [00:12:41] money than you have in this environment. [00:12:43] So force savings are a great way to [00:12:45] build wealth. Housing or owning a home [00:12:46] has been a great way to build wealth. [00:12:48] Now is that because it outperforms other [00:12:49] asset classes? No. If you include [00:12:51] maintenance and taxes, it's probably [00:12:53] underperformed the stock market. But [00:12:55] people don't like to have their home [00:12:57] foreclosed on. So they generally make [00:12:59] that mortgage payment and slowly but [00:13:01] surely the value in their house should [00:13:02] grow tax deferred to kind of build [00:13:04] wealth because of its forced savings [00:13:07] mechanism that's built into it. You want [00:13:08] to implement the same type of thing for [00:13:10] you. [00:13:10] >> Now this is a great piece of advice. [00:13:11] Honestly, this is really good. So, if [00:13:13] you can automatically, for example, have [00:13:16] your paycheck delivered to your [00:13:19] financial advisor before it hits your [00:13:20] inbox or whatever mechanism you have, [00:13:23] you know, you you deliver 20% of your [00:13:24] paycheck automatically to your bank for [00:13:26] investment, [00:13:28] that would be a good thing. And what [00:13:29] he's saying is that people pay their [00:13:30] mortgage and that's an automatic [00:13:31] investment because the mortgage actually [00:13:33] has worth. When you pay your mortgage, [00:13:34] you're earning more of your house. He's [00:13:37] saying, listen, we're a consumption-led [00:13:39] environment. there's always something [00:13:40] more to buy, something cool to get. But [00:13:42] if you can put yourself in a position [00:13:44] where you automatically are going to [00:13:46] send the track to the right place, then [00:13:48] that is a a better position. By the way, [00:13:49] this is the exact reason why the federal [00:13:51] government literally does this to you. [00:13:53] They force your employer to withhold [00:13:55] your taxes in order so that you are not [00:13:59] going to spend that money. [00:14:00] >> Everybody just calm down. [00:14:03] >> All righty. So, it turns out that you [00:14:04] can find some pretty decent financial [00:14:06] advice in the online space. If you have [00:14:08] any questions, leave them below and [00:14:09] we'll see if we can get to them on this [00:14:11] particular topic.