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Dan Martell
- March 15, 2024
8 Middle Class Habits That Are Keeping You Poor
Episode Stats
Length
13 minutes
Words per Minute
223.96355
Word Count
2,982
Sentence Count
139
Summary
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Transcript
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).
00:00:00.000
What makes someone financially successful?
00:00:02.820
Why are some people so wealthy
00:00:04.800
while others literally struggle from paycheck to paycheck?
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While I was writing my book,
00:00:09.880
I had to ask myself this question.
00:00:11.520
And I realized the only difference
00:00:13.000
between the rich and the poor are habits.
00:00:15.760
And I was able to distill all the bad ones
00:00:17.980
into these eight habits that are keeping you poor.
00:00:21.780
The first habit is the status chaser.
00:00:24.540
This is the person that literally lives
00:00:26.680
way above their means to impress people.
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I mean, it's the folks that get out of university or get the first job and go and buy their life
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on credit. You know, they get the furniture, the apartment, the BMW lease, all these things
00:00:38.620
to impress other folks. And the crazy part is they're buying things they can't afford to impress
00:00:42.760
people they don't even like. It's the Joneses that they talk crap about. That person will always
00:00:48.040
cause themselves to stay poor because they never get ahead. They're okay being in a deficit. They
00:00:53.700
got the credit card when they were 12 years old. They've learned that consumer debt is okay. It's
00:00:58.840
not that bad. I'm building my credit. Yet they don't realize that they're stuck in the rat race.
00:01:04.740
They're stuck in the hamster wheel of consumer debt that is designed to keep them poor. It's
00:01:10.860
their habits and their choices around that. Status chasing will always keep you poor.
00:01:15.960
The second habit is the staller. This is the person that has opportunities that are presented
00:01:21.480
to them on their doorstep. It's right there, but yet their lack of action, their dragging of their
00:01:27.140
feet cost them the opportunity. I talk about this in my book, but I once emailed one of my clients
00:01:32.960
in my program SaaS Academy to ask them if they wanted to be a partner, had an opportunity. It
00:01:37.520
was very exclusive for them. Their customers were literally my clients. And I emailed them and I
00:01:42.720
said, Hey, here's what I'm thinking of doing. Would you be interested in learning more? And that email
00:01:46.880
stayed in their inbox for 20 some days until they decided to reply. I had already moved on. I,
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within like three days i think i sent that email to three or four people and i chose the person
00:01:57.480
moves forward and that person made hundreds of thousands of dollars working with me most people
00:02:02.360
don't realize the habit that keeps them poor is the decision to not respond out of fear out of
00:02:07.960
concern what if i'm not good enough well i don't have my ducks in a row i gotta get everything
00:02:12.040
ready and the delay is costing them their future the third habit is the speed demon this is the
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the person that moves way too quick, way too fast under the assumption that they've got to be quick
00:02:24.440
to take action and quick to make decisions. And it's almost like the opposite. I had a CEO once,
00:02:29.600
the name was Charles, and he was the CEO of a company that I'd acquired. And it was funny to
00:02:33.680
watch him execute because he needed a CMO. So he hired his cousin. His cousin came in, didn't do
00:02:39.200
the work, and then he fired him only to hire his other friend, Darwin. And it was fascinating to
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watch. Here's Charles that actually knows better. And just because he's trying to move quickly,
00:02:48.580
he keeps hiring people just because they have a pulse, just because they could fog a mirror,
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just because they were available. Instead of asking themselves, what would be true
00:02:57.080
around a great CMO? What would be true about a great hire and do the work to find that person?
00:03:02.780
Don't go slow. Be impatient with action. But at the end of the day, make the list of what would
00:03:06.940
be a great person to bring onto your team as an example and move quickly. Speed Demon can keep
00:03:12.580
you poor by that habit of just being too quick to jump the gun to saying yes. Speed demons hurt
00:03:18.200
their success because instead of going and sticking through something, they're always moving on to the
00:03:22.720
next opportunity, to the next opportunity, to the next opportunity. It's the lack of focus and going
00:03:26.660
deep, learning how to say no, being okay with FOMO. Some speed demons, they're so concerned
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they're going to miss out on these opportunities that they're always saying yes, that they're
00:03:35.680
essentially saying no to their future because a no is a yes and a yes is a no. The fourth habit
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is the supervisor. This is the person that hires folks and ends up doing their job for them. I mean,
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when we hire people to work on our teams or bring people into our lives, it's because we need to buy
00:03:50.660
back our time. We need to get more space. I remember I had a friend of mine, Daryl, he owned
00:03:54.340
a bike shop and I love Daryl and I wanted to see him succeed. But I'll tell you, every time I bought
00:03:59.320
a bike from him, I brought my stuff in to get tuned up. It was always delayed. There was always
00:04:03.860
issues. And he had the belief that he had to meet me at the front door, shake my hand, acknowledge
00:04:09.260
me because that's what made me decide to buy from Daryl's bike shop. Here's the deal. I cared more
00:04:14.560
that my bike got delivered on time, that the work got done on time, than if Daryl met me at the door.
00:04:20.820
The supervisor believes that they are special because of their supervision. I actually think
00:04:25.440
it's more harmful than helpful. What we all wanted was Daryl to go in his office and run his company
00:04:31.680
so that our work got done on time. Most people don't realize when you're overly supervising people,
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you're essentially telling them that you don't trust them.
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You're doing their work.
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So what do you do?
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You teach people how to treat you.
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So if you're jumping into your support email,
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if you're jumping in to respond to things for people,
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if you're taking over
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because somebody's out at the bathroom break,
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you're telling them that if they do that in the future,
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you'll do that.
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So indirectly, you're gonna get to a place
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where you're not getting any more time back.
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You're not empowering anybody
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because you're teaching them how to treat you
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by always showing up and taking care of things
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when they're not around.
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The fifth habit is the subscriber.
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this is somebody that is always buying that next thing they get off by the dopamine hit of a
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subscription hey i need to watch the football game boom got a subscription i need a new tool
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boom got a new subscription it's the same person that goes on these like self-help journeys where
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they go to seminars and they buy courses and books and i literally i call them shelf help
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because all they do is they acquire these things they collect them they put them on the shelf and
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they never investigate what they could do actually to improve their lives they're always trying to
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buy their way to happiness and in doing so they are death by a thousand subscriptions think about
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it 51 of americans say they have unwanted subscriptions the biggest way we can overcome
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that is by clearing out all the payments that we're getting bought so the subscriber is the
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person that is buried you know by expenses they don't even realize they creep up through the
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eight dollar subscription here the four dollar subscription there the twenty dollar subscription
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there and they think well i need these things for my life to work you got to make a list of them
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clean them up get them out stop being the person that keeps running to buying stuff
00:06:05.460
to thinking that that next thing is going to be the savior to your life i think most people don't
00:06:09.700
realize that in purchasing things the subscription you don't realize that there is anxiety of just
00:06:14.580
having objects most people create a lot of pain in their lives trying to move things around their
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life my dad when i was younger he literally had these bins where he collected stuff and i watched
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him several times a year move pins from one shed to another shed from the basement to the the attic
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like he could not throw stuff away he could not cancel a subscription because he felt like he
00:06:38.580
would miss out on something but he spent more time and more frustration just managing and packaging
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and moving these bins than of ever using and getting value from the things inside the bin
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the sixth habit is the saver and it's the opposite of the subscriber because the subscribers always
00:06:53.140
buying stuff to try to fix problems in their business but not ever having the time to actually
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use the thing they're buying the saver refuses to spend money to fix core problems unless they can
00:07:02.180
100 correlate a 10x roi see the reason why rich get richer is because they look for opportunities
00:07:08.500
to invest poor people stay poor because they look for things to buy oftentimes the saver doesn't
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realize that their desire to save money is essentially creating a habit where they're
00:07:17.940
making decisions to not spend money so they're not investing in themselves or their business
00:07:22.820
to grow. I remember one time I had a buddy reach out because he had heard that we built one of the
00:07:26.780
most successful coaching organizations in the world and wanted to know, how do we do it? At
00:07:31.760
the time, I think they were doing about 2 million in revenue. They had a mastermind and he was going
00:07:35.300
to shut it down because he couldn't figure out a way to do it where it was fun. So I recommended
00:07:39.560
a person. This is the guy that I hired that taught me the framework to show me how to do this. And I
00:07:44.420
talk about it in my book because I thought it was crazy because I said, Hey, here's the guy. Do you
00:07:48.540
want an intro? And he asked me, well, how much does he cost? I don't know. Honestly, I don't
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remember. I know it wasn't that much because it wasn't that jarring, but you have a 2 million a
00:07:56.080
year business and this is the guy that's got the answer. Just hire him. He's like, well, is it like
00:08:00.340
5K or 10K? I said, it's probably around like a 10K thing, but it will solve your problem. It'll
00:08:06.340
never be an issue. And his response was, does he have a book? I don't know if he has a book,
00:08:11.160
but a $20 book is not your answer. You need to invest in the solution so that you don't shut
00:08:16.780
down this thing that was probably doing 600,000 a year in profit for him. He was literally going
00:08:21.340
to shut down a $2 million a year business, 600,000 in profit because he wasn't willing to spend
00:08:26.960
$10,000. The saver doesn't realize that those decisions are the things that are keeping them
00:08:32.320
from growing and not being poor. The seventh habit is the self-medicator. And I got to be
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honest, this story I'm about to share with you, I'm ashamed of. Back in the day, it was 2005,
00:08:42.300
I was doing some work for Yale University and back then I was a drinker. You know anytime I wanted to
00:08:48.660
celebrate or let loose I would go and I'd have some drinks and while I was working on site I
00:08:53.680
decided to go have this beautiful meal at a sushi restaurant. You know I'm consulting I've got an
00:08:58.780
expense account and I go and I enjoy myself to the nth degree. You know sake bomb things start
00:09:05.440
flowing I make some friends all of a sudden we go right till the restaurant shuts down. The next
00:09:10.160
morning I was so hung over I was so sick that I called in and I said that I got food poisoning
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now everybody knew because I was telling everybody the day before that I was going to this sushi
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place and unfortunately everybody thought that restaurant made me sick and the truth was is
00:09:25.900
I was hung over I was still drunk you know I've been sober now for almost 13 years but I share
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that story to let people know that oftentimes the thing that's holding us back is our vices right
00:09:36.380
It's the drinking, it's the screen time,
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it's the food, it's the news.
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They're addictions that compromise our time
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and get us focused on negativity.
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See, a lot of people ask me,
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Dan, what have you done to become successful?
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And what I often tell them, it's what I don't do.
00:09:50.620
I don't go to buffets, I don't drink, I don't do drugs,
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I don't gamble, I don't watch porn,
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I don't do all these things that I consider vices
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holding you back from becoming the best version of yourself.
00:10:01.520
A vice will stop you from winning
00:10:03.280
because it's gonna dull your senses.
00:10:05.260
It's gonna pull you back from being in the moment.
00:10:08.120
It's gonna stop you from having these creative moments
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where you go on a walk or a run or after you go to the gym
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and you have these ideas for expansion.
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And the other thing is that you know
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you shouldn't be doing these.
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So what happens, you slowly chip away at your confidence.
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See, confidence is built by keeping commitments
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that you make to yourself in private.
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And if you know you got a drinking problem
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and you can't keep it under control,
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it's gonna be really tough for you
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to build that self-confidence, build that courage
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to make those big moves to grow your future.
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The eighth habit is the swindler.
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This is the person that, you know,
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they're kind of the shyster.
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You may know people like this in your life
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where you just don't trust them.
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They're always looking for an edge.
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They're always taking advantage of people.
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If you're participating in nefarious activities,
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you're setting yourself up for failure.
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Here's an example.
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I had a friend once and he sold a couch for his roommate.
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After the deal was done,
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he decided to pocket 30% and give his roommate the rest of it.
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Now, he didn't ask for that.
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He didn't negotiate that up front.
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He just decided to keep it.
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No big deal from him.
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He's like, hey, I did this work
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and I just kept this money.
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It's the essence of who you are.
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I mean, it sounds subtle, but for example,
00:11:10.820
I have friends that choose to continually park in spots.
00:11:14.200
They know they're gonna get a ticket
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and get the ticket and just say,
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I'm never gonna pay this.
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See, it's the energy.
00:11:19.280
If you think about what a swindler mentality is,
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you're bringing negativity into your life.
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You're taking advantage of other people.
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And what happens is you then get taken advantage of
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from a time point of view,
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that takes up a lot of head space
00:11:31.900
where you're always dealing and worrying.
00:11:33.420
and essentially the energy you put out to the world
00:11:35.600
comes back at you, right?
00:11:36.840
The frequency that you have
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is what you will frequently see in other situations.
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So people that act like swindlers
00:11:43.540
essentially see swindles in everything they do
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and it makes them move slow.
00:11:48.020
I was in Miami the other day
00:11:49.320
and I ran into a new person that I'd known of,
00:11:52.680
but I had already heard from other people
00:11:54.340
that he had a checkered past
00:11:56.520
and wasn't a good person to deal with.
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And even though in the moment I met them,
00:12:00.280
they were super kind and cordial,
00:12:01.680
I immediately, once he gave me his cell number,
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I never entered it in my phone.
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I didn't follow up.
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I trust the feedback that other people give to me
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and swindlers have no place in my life.
00:12:13.140
If you have a bad reputation, it's hard to do business.
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The problem is, is you'll never know.
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So your reputation is what people say
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when you're not around.
00:12:20.820
And if they're saying, hey man,
00:12:22.060
there's something odd about this guy.
00:12:23.540
He's a little crookoo, he's a little crazy.
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He's a little, I don't know, a little shady.
00:12:27.620
You're Shady McShade, sir.
00:12:28.780
Don't be upset if nobody invites you to the good deals
00:12:31.000
because they just don't trust you at the end of the day you want to have a good reputation
00:12:34.600
for being the kind of person that does what they say they're going to do and is always above board
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if you're somebody who does shady things or you know people the world we live in today it's very
00:12:44.280
easy to back channel so if i'm interacting with somebody on social media and i see who follows
00:12:48.200
them i'm just going to message them and say hey do you know this person and at the end of the day
00:12:51.560
i usually ask hey what do you think of this person feel free to call me if need be and if they go hey
00:12:56.120
let's set up a call. I just reply and say, enough said. I can read into it what I want. We don't
00:13:01.420
need a phone call and I keep my space. People that do shady things have no idea how much it hurts
00:13:06.960
them because they never hear about it, but it's always going on. Those are the eight habits that
00:13:12.080
are keeping you poor. And if you want to learn the only four skills you need to build a billion
00:13:16.580
dollar company, click the link and I'll see you on the other side.
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