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Dan Martell
- December 31, 2024
15 Principles of Success
Episode Stats
Length
19 minutes
Words per Minute
235.59746
Word Count
4,523
Sentence Count
290
Summary
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Transcript
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).
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I started out as a broke 17-year-old
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struggling with bad decisions, addiction, and ADHD.
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But I'm gonna share with you the 15 principles of success
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that took me from that to selling three companies,
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writing a Wall Street Journal bestselling book,
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and building a $100 million empire.
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Principle number one, use fear as a compass.
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I used to think working hard meant grinding.
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My first company, I would do 100 hours a week,
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almost burning myself out.
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And it turns out that working hard
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and doing the right thing are not connected at all.
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Working hard doesn't mean hustling.
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Working hard means doing the thing that scares you.
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I always think of this awesome quote by Joseph Campbell
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that says, the cave that you fear to enter most
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holds the treasure that you seek.
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Meaning the thing that you don't wanna do,
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that conversation, that decision,
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showing up to that place that gives you anxiety,
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that freaks you out a little bit,
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that's actually hard work.
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That's fear.
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And the fear is the compass in that situation.
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A lot of people get imposter syndrome,
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but it just means you're stretching your identity.
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If you're actually in a room
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when you're the bottom person in the room,
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you're in the right room. You just have to rewrite the story that you're telling yourself.
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It's crazy because fear is the path. The obstacle is the way, as Ryan Holiday would put it. Fear
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just stands for false evidence appearing real. So even though you're scared, that's what courage
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means. Courage isn't taking action towards the thing you want because you're not scared. Courage
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means in the face of fear, you make the right decision and fear acts as a North Star. You have
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to take action before you convince yourself not to do it. I would argue in that moment, do something
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quick. Because if you let your left brain convince you out of it, you're going to wake up one day
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wishing you would have made that decision. Regret minimization is acting in spite of fear. Which
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brings us to principle number two, play to win, don't play not to lose. I have so many rich friends
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that are always focused on not paying taxes. They'll go so far down that strategy as they'll
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go and move to another country. How about go make more money? How about go try to be better? The
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world rewards those who make courageous decisions. Even though you know it's going to be hard, if you
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make a decision that is forward movement, not away from pain, not away from a bad decision,
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moving towards it is going to come with so much positive energy that that momentum will actually
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help you get there a lot faster. So stop trying to act by reducing the downside, getting rid of
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all of it. They'll always be there. Risk is taking decisions with imperfect data. If you wait for
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everything to be perfect, trust me, the market would have moved on you. You're not going to make
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any money. Here's something to consider. You will lose. I believe that every time I have a business
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idea, I'm probably wrong about some aspect of the business idea. And what I do is I move really
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quick to figure out what aspects I'm wrong about. You just have to lose in small amounts enough so
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that eventually you find the win, which brings us to principle number three, make your old high,
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your new low. A long time ago, I was helping one of my buddies with his business. And in a 12 month
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period, he followed everything I showed him and he made over 2 million in revenue. Now here's the
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deal. I told him now don't go give it back. You have a belief around what you're worth. And if
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you go above that, then you start giving things away or creating situations where you lose. Think
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of it like your bank account. If you're used to having a thousand dollars in your bank account
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and it goes down to 50 bucks, you're probably going to make a different series of decisions
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today to make sure that that balance goes up to a thousand. Eventually you might get it up to 1500
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and then you might decide to make some decisions to bring it down to a thousand. See how the old
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high has to become the new low because I need you to operate like it was 50 when it's at 1500 so
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that it keeps going up and up and up. See, most people have these challenges around what they
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believe they're worth or what they believe should be there. And they will make decisions to go back.
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One of my business mentors, Ed Milet, talks about having a thermostat of your life. And you might
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believe you're an 80 degree type of person. And if all of a sudden the room heats up to 110 because
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you get around a bunch of high net worth people, you'll inadvertently cool the room down back down
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to 80. And if it drops down to like 60 or 50, you'll heat up that room to get back to 80. It's
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a thermostat on your life in regards to what you think you deserve from health, wealth, finance,
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your physicality, your weight. If you don't work on your identity, what you think you're worth,
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you'll always be cooling yourself back down. And that's why I say you've got to make your old high
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the new low so you operate as if the money's not there or the weight is more than it says so that
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you keep losing or gaining whatever it is you're trying to go after. If you don't build that
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identity, you won't fight for what you think you're worth. It's actually being sick and tired
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of being sick and tired that's going to change the whole game. So build your identity to change
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your life. Which brings us to principle number four, permission is taken, not given. I had a
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client the other day say to me that he wants to make it before he starts making content. In many
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ways, he's saying, I need to wait to give myself permission to create content because I don't feel
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good enough yet. By whose standard? By whose definition of capable or successful or made it
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are you defining yourself? And why would you not want to share what you've learned that's helped
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you so far with other people? Why wait until everything's figured out? Your dreams don't need
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anyone's signature of approval. Most big businesses know less about their business than people just
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starting off. And people starting off, look at these companies and go, man, they must have it
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all figured out. No, they don't. They're still trying to figure it out. They're still trying
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to figure out their next growth, their next product, their next opportunity, just like
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everybody else. The difference is, is they're not waiting for anybody's permission to make a
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decision. You should be looking for forgiveness, not permission. Too often I see people going like,
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if I can just get on this podcast, then my life will change. What if they say no? You don't need
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anybody to say yes for you to win. You can decide. It's like people that work on teams and they think
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I need a title to give myself permission to even do that. What I've learned is a leader is somebody
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has followers. A leader is not a title. A leader is not something that somebody blesses you with.
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You either show up as a leader and have people that admire what you're doing and want to follow
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you and learn from you, or you don't. You don't need anybody else's permission to take action,
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Which brings us to principle number five, measure what matters. To the degree that you measure with
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precision, you will get a result. Earlier this year, I had a goal. It was a crazy idea to get
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visible abs. I know it sounds trite and egotistical, but the truth was I heard somebody say in the U.S.
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there's 22 million millionaires, but there's only 3 million people with visible abs. And I thought,
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why not me? I've been going to the gym my whole life. I've been working out, doing ultras, doing
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Ironmans, but I didn't have visible abs. The way I ended up getting there is by tracking everything.
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I measured everything, my macros, my workouts,
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my calories burned per day,
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making sure I was in deficit,
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my weight every morning, every night.
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In 90 days, I went from 17% body fat, no visible abs
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to about 6% body fat, absolutely shredded.
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Peter Drucker is one of my favorite business minds
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and he has this great quote that says,
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what gets measured gets managed.
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Here's the way I do it.
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First thing is, I need to know where I'm going.
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I need to have that clear vision
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of what I'm trying to build.
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Most people, unfortunately, don't know.
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They just say, well, I want a better life, more money.
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I want to look better.
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I want to feel better.
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But those things aren't specific.
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See how there's no way to measure that.
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So if I know where I'm going, what I'm trying to create, then I start by writing down those
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goals.
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Then I review them frequently.
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Things like my bank account.
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I look at my Stripe blog and I get emails every day with daily cash positions.
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I stand on a scale to make sure my weight and my body fat percentages are in line with
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my goals.
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The more I measure the daily, I set up a standard that makes my goals inevitable.
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If I follow a process and I measure these numbers
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and they're going the right direction,
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the end state of where I want to end up
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just happens to happen.
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It's a byproduct of making that decision.
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Which brings us to principle number six,
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your network is your net worth.
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When I moved to San Francisco, I didn't know a soul.
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So I decided to do something a little crazy
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and organize a founder's dinner.
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Essentially, I would just invite founders
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that I met to dinner.
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And I did this every week for months.
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Eventually getting introduced to a guy named Alex
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and introduced me to one of my first investors
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in my company, Clarity, Mark Cuban.
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Most people do networking wrong.
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I'm gonna share with you the best way to do it,
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to connect with people that wanna see you win.
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First off, the fastest way to create value
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for other people is to connect them with each other.
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So I just got off a meeting today at lunch
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where I brought six of my friends
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that don't know each other on a Zoom call,
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did some quick intros,
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had everybody talk about their latest projects,
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see if there's anything I could help them with,
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and then make sure that they connected with each other.
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In the valley, the currency is introductions.
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If you know a good person and another good person
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and that one person can help the other
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and they need the help, make the intro.
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The other point is you always wanna remember people's names.
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There's nothing worse than seeing somebody
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that you know and calling them buddy.
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Trust me, as a person that gets called buddy quite a bit,
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I'm like, you don't even remember my name.
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And they're just like, well, you know,
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I kinda remember meeting you at this dinner.
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It's like, it's all good.
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But if you wanna make an impression,
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use it and remember it
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because it's worth everything to them.
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The other part is you need to know what people want.
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When you're talking to somebody,
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your job should be asking questions
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to figure out where they're stuck,
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what they're having trouble with,
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what are some of the big opportunities
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they're trying to execute on
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that they might need some support
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and then think to yourself, how can you help?
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Maybe you have a skill, maybe you've seen a reference,
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maybe an article that you read recently
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you could share with them.
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You being that value-added person in their life
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is gonna create the opportunity
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for them to think fondly of you
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and it's all about reach and reputation.
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Who knows you and what do they think of you?
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But you won't really get rich
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unless you learn principle number seven.
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Spend money to save time, not time to save money.
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Remember this one time I was working on a startup
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with my co-founder
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and we just got ourselves into a pickle.
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And I call him up and I'm like,
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hey man, let's meet at the office.
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And he says, I can be there in three hours.
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I just gotta get some laundry done and then I'll be in.
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And I thought to myself, you make a hundred grand a year
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and you're gonna go wash your laundry
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instead of just dropping it off at the wash and fold.
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And you walk by three of them on the way to the office.
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He's like, yeah, you're kind of right.
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And I said, man, I'll see you in an hour.
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You have to go solve bigger problems right now.
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Hire to buy back your time, not to add capacity.
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Most people just keep adding staff to start new projects
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instead of getting their time back to execute
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on the ones they know are gonna make them money
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because they're involved.
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To do that, you need to understand your buyback rate.
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So you just take the amount of money you make per year
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divided by 2,000, that'll give you a dollar amount.
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So if you make $40 an hour,
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you should try to find anything you do in your life
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where you can pay one quarter of that
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to somebody else to do it for you
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so that you can reinvest that money.
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And you can pay someone $10 an hour to do something, do it.
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Which brings us to principle number eight, default to action.
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This one drives me crazy.
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The amount of times I've seen 40 page business plans from people talking about strategy this
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and process that and hire this.
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And I'm just like, the only thing you should be doing right now is selling something to
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a stranger to start the business.
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When I started Martell Media, which is a multi eight figure business today, I was on a hike
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with a buddy and I had this idea to do something completely different.
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And instead of talking about it, I pulled out my phone and I texted a friend and got
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the whole thing started.
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I sold almost $100,000 of what I wanted to sell
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without talking to one person, made the offer,
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figured out how to take payment right after I sold it,
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and then moved the business forward.
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What your first move is matters less than just making it.
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Too often, people try to make the right decision in business,
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make a decision, try to make it right afterwards.
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You know, Jim Collins calls these bullets.
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We want to fire bullets towards the target
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because we don't even know if we're close to hitting it.
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Once we nail it and we're getting towards the center,
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that's when we load up the cannonball
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and we take a big shot, maybe, and I hate them,
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business plans or hiring a bunch of people
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or getting an office or raising a bunch of capital.
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But doing that before you know
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that you've got a there there
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that the dog will hunt makes no sense.
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You wanna be patient with results, but impatient with action.
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Which brings us to principle number nine,
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which is simple scales, complex fails.
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One of my favorite examples of this is Steve Jobs.
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After he sold Next to Apple and he came back,
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he looked at all the products
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and decided to cut almost 95% of all products
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down to a single product line. They had built 15 different desktop models and he cut them all
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except for one. If you want to grow something fast, if you want to grow things with ease,
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you have to focus on simplicity because complexity is easy. Complexity is human.
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Complexity is the default. Focus is everything in business. Follow one course until successful.
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If you're an entrepreneur, you get to choose the rules of business. Instead of adding things,
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think about how you can remove. What could you take away and it wouldn't break the system?
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That is a simple version of what you've got.
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Which brings us to success principle number 10,
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make people rich.
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It is the first thing I think about
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every time I start a new business.
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I want to figure out how do I make somebody else rich?
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Every one of my executive leaders
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have a compensation strategy
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where they have unlimited upside.
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I don't want to tell somebody,
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you can only make 300 grand a year.
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I want you to make 3 million a year.
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I want you to make 30 million a year.
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If you go and execute and create value
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that the whole team can celebrate in,
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I don't want them to be capped.
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I had a friend that fired his top sales guy
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because he was making too much money.
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Do you know how silly that is?
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Because if you paid him $400,000 a year,
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that means he made you $4 million
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and you fired him because he was making more than you.
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That's not a winning strategy.
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You receive what you desire for others.
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If you don't want other people to be rich,
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you won't be rich.
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Get obsessed with people's goals and problems.
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Figure out what they want to achieve in life
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in regards to their personal goals
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and figure out what problems you have in your business
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that you might offer them to go help you overcome.
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And if they do, that you help them achieve their goals.
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That way they're aligned with what you need done.
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You have to have a big enough vision for your business
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so that your team's dreams and goals can fit inside of them.
00:12:59.000
Because if not, they'll find some other place where it will.
00:13:01.560
Which brings us to principle number 11,
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change your words and you'll change your world.
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I've coached tens of thousands of people all over the world.
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I can tell immediately if someone's going to succeed or not
00:13:10.780
just by the words they use.
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When you use the words like should, could, would,
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you're already expecting failure by just the language you're using
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to describe your situation or the future you want to create. Language you use isn't just about
00:13:24.500
communicating to other people. It's a signal to yourself. If you don't talk with confidence about
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the world you want to create, then your ability won't come across as confident and nobody's going
00:13:34.260
to want to jump out of their seat to help you with it. The way you describe your situation
00:13:38.320
will either give you hope or fear. You don't think words matter? Trust me, your language matters.
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I remember one time listening to a guy and I really wanted to record that conversation and
00:13:48.200
transcribe it and ask him to read it back to himself and say, do you think that person is
00:13:52.540
confident? Do you think that person is certain about themselves? Do you think that person is
00:13:56.060
somebody you'd want to bet on? I don't think people hear themselves enough or don't pay
00:13:59.940
attention to their words. And if they did, they would shape their whole reality completely
00:14:04.120
different because certainty comes from language. Today's energy shapes tomorrow's reality. Those
00:14:10.000
words will shape that energy and your reality of tomorrow. Which brings us to success principle
00:14:14.440
number 12, actions prove your priorities. There is a huge difference between what people say they
00:14:19.420
want and what they actually do. A lot of people might say they want to lose weight, but then you
00:14:23.460
watch them and they go and eat at a buffet. They go to the gym maybe once a month. They want to get
00:14:27.660
rich, but they never look at their bank account. I don't care what you say you want. I care what
00:14:32.220
you do. If you tell me something's important to you, show me your calendar and your bank account
00:14:36.400
and I'll show you your priorities. What you invest your time and money on is your priority. People
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will say, oh, my family's important. Well, show me where date night is. Well, I'm busy with my
00:14:44.940
business. Okay. What's important in your business? Well, I need more customers. Show me how much time
00:14:48.700
you're spending on marketing. How much money are you spending on marketing? How much time are you
00:14:51.540
spending on sales calls? All your time spent building product or doing the service. It's like,
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yeah, well, I have to build the thing so I can sell it. No, you don't. Most people lie to themselves
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about what's important to them. Your priorities is all about saying no to something so you can
00:15:04.460
say yes to something else. Which brings us to principle number 13, ask better questions. Anytime
00:15:09.560
I coach a CEO or founder, I always ask them a simple question. If somebody bought your business
00:15:14.480
tomorrow, what's the first thing they would change? Then it's a follow-up of why haven't
00:15:18.100
you made that decision yet? That simple question will program their mind because an uncreative
00:15:22.460
mind can spot the wrong answer, but it takes a very creative mind to spot the wrong question.
00:15:27.580
And the wrong question will drive you down a path that you can't come back from. Here's one
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of my favorite questions to ask somebody. What are you pretending not to know how to do? Why
00:15:35.600
are you pretending? Who would you be without that story? A properly placed question can just shift
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your whole point of view and get you crystal clear on the next steps to move your dreams forward.
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The coolest part is the best leaders in the world, they don't give feedback. They ask questions.
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They coach through their questions. They help people realize what they should see, but they
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can't see because it's right in front of their face. There's a question I ask myself every day
00:15:57.520
as an example to get me on track, to keep me focused, to bring the right energy, and it's how
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can I appreciate even more God's grace and guidance in this moment? And I can ask myself
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that three, four, five, six, seven times a day, and it just gets me back on track. So what's your
00:16:10.840
question? How do you get back on track after having a hard time? Tony Robbins has this great
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quote, and he says, the quality of your questions will dictate the quality of your life. Ask better
00:16:18.940
questions, live a better life. Which brings us to principle number 14, learn, do, teach. Eight years
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ago, I was speaking at an event in a prison, and I met a guy that absolutely blew me away. Two months
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ago, I get off stage. Who do I find there? This gentleman. He wanted to say hi. He'd been out for
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a couple of years and he's now the executive director of a nonprofit helping people transform
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their lives who were recently incarcerated just like him. I came from that environment as a
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teenager. So you'll never know the impact you can make if you just follow this simple rule.
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Work harder on yourself than you do on your job. Become more so you have more to give other people.
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Have more to serve with other people. If you get out of your situation, it's your responsibility
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to send the elevator back down
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and help people come out of that hole.
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The philosophy of integrating your learning
00:17:05.400
comes from nursing school.
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When they talk about it, they say,
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you gotta learn it, you gotta do it,
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and you gotta teach it.
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If you learn, do, and teach,
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you integrate that knowledge into your life,
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it becomes who you are,
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not just information that you can memorize
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and recite to somebody else.
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It impacts your life.
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And if you become the example,
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then other people will feel that energy
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and be inspired by you.
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And that's why having that gentleman come up to me
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after I got off stage to tell me that I inspired him
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and now he's inspiring thousands of people
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just like we were?
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That's crazy.
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You can do the same thing.
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Which brings us to the last success principle,
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number 15, define your why.
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2024 was a crazy year.
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New businesses, big opportunities, stages, books,
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just everything was bananas.
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And I was already maxed out,
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but I had something on my heart I needed to do.
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And it drove me my whole life.
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It's been a big part of my life working with at-risk youth,
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but I started a new program called King's Club.
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It's a free youth program that I mentor 100 kids
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every couple of weeks personally in this building.
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And it's a passion project that's kind of become a movement
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in our local community.
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It's bananas.
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I get to sit down and have a personal connection
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with these kids.
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I get to mentor them.
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I get to show them my supercar collection.
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We get to talk about real life challenges
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that are facing them now.
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And my favorite part is I give every one of them a book,
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Think and Grow Rich.
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My why has been clear from the day I got sober out of rehab.
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I believe that your purpose sits right next to sometimes
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the worst thing that's ever happened to you.
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And for me, clearly being incarcerated as a teenager really affected my soul.
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And if I can do that for other people, that is my everything.
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If you have a why that's bigger than your fear, then you'll do it.
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You won't second guess yourself.
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You won't put it off.
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Your why has to be so powerful that it makes the how seem small.
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It doesn't have to change the world.
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It just has to change your world.
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Start with your community.
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Start with your backyard.
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So many people want to get up and it's like, I want to change the whole world.
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How about you just start with your world?
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How about you start with your community?
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You have people that are in need all around you.
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You don't have to make it this big thing.
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You just have to start.
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If you have a why attached to your do,
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it'll propel you forward with more energy
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and faster than you could ever imagine.
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If you want to learn the 40 brutal truths
00:19:09.100
I wish I knew in my 20s,
00:19:10.440
click the video and I'll see you on the other side.
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