Dan Martell - The Untold Truth of Money - How to Get Rich Faster

00:00:00.000 I'm gonna share with you the untold truth about money.

00:00:02.900 I personally use all these principles

00:00:04.640 to go from broke 17-year-old

00:00:06.340 to making my first million at 27 years old.

00:00:08.900 And I still use these principles to generate wealth

00:00:10.940 and create abundance in my life today.

00:00:12.820 The first principle is to pay yourself first.

00:00:15.400 My first company, a paycheck came in

00:00:17.380 and I put 60 to 70% in savings

00:00:19.680 and forced myself to live off the rest.

00:00:21.760 It was a forcing function for me to pay myself

00:00:24.740 and to then try to find ways to reinvest and grow.

00:00:27.640 I remember one of my companies

00:00:28.760 I started with my co-founder, Ethan.

00:00:30.380 He wasn't paying himself enough

00:00:31.880 and then he didn't have the time to do business stuff.

00:00:34.500 I remember one time I asked him to come to the office

00:00:36.180 and he said he was too busy doing laundry.

00:00:37.900 The CEO of a company couldn't come to the office

00:00:40.560 to brainstorm, to whiteboard with me

00:00:42.560 because he couldn't pay for wash and fold.

00:00:44.540 When you pay yourself first,

00:00:46.560 it then forces you to cut your costs that aren't efficient

00:00:49.280 because you need the capital to grow.

00:00:51.360 If you just keep pouring everything back into the business

00:00:53.900 and you're paying yourself nothing,

00:00:55.280 you actually have a fake business.

00:00:57.180 It's not real.

00:00:58.020 you're not paying yourself what you deserve for the value you've created so you want to take the

00:01:01.860 profit out of the business first then operate from the rest i know a lot of people say no leave the

00:01:06.900 money in the business it doesn't force you to put your prices up to figure out your cost structure

00:01:11.140 to be more efficient in your workflows i know this might be controversial but constraints breed

00:01:15.700 creativity all the best innovations came from constraints not having all the resources in

00:01:21.060 the world when you're starting out you want to put the most amount of money aside for the next

00:01:24.980 principle you are the most important asset not a house a car a watch an investment you which leads

00:01:30.500 us directly into principle number two which is to invest in your skill set not your lifestyle it's

00:01:35.620 not your salary that makes you rich it's your spending habits my dad used to say this to me a

00:01:40.100 long time ago it's not what you make it's what you spend if you spend a million and one dollars and

00:01:45.220 you make a million dollars a year you are one dollars poor 25 of millionaires actually live

00:01:50.660 month to month. But rich people don't just save money. The untold truth is they reinvest that

00:01:55.640 money in themselves to get better. The world will pay you based on the value you create.

00:02:01.120 The way you become more valuable is to invest in your skill set so you can solve bigger problems.

00:02:05.900 If you're an accountant managing people's books, that's not very valuable. If you're an FP&A,

00:02:11.020 financial planning and analyst, that's more valuable. If you're a tax strategist, that is

00:02:15.880 the most valuable. And if you combine all of that in your dealmaker, people are going to pay you

00:02:20.380 10% of the total deal. It could be a $100 million deal and you get a check for $10 million. How do

00:02:25.520 you get that valuable? By investing in your skillset. See, money's a byproduct of your energy.

00:02:30.400 So investing in yourself to have a better mindset, mental energy, physical energy, the time in the

00:02:35.600 day, the skills to move faster, that's going to make you more valuable. Most people say, well,

00:02:39.980 no, I just save my money and I get my 5% a year and I'm going to be rich that way. No, you can

00:02:44.380 literally have a million dollars in 12 months by paying somebody that's done it before to teach

00:02:48.680 you how to do it. It happens all around and nobody talks about it. That's why you want to invest in

00:02:53.220 your skill set. So where should you spend that money? Number one is books. Think about this.

00:02:57.440 For $30, you can buy a book that somebody spent their whole lifetime unpacking their best

00:03:03.240 practices that you can learn in six to eight hours, 10 pages every day. Reading for a lifetime

00:03:08.520 of knowledge. That's how you win. So number one is books. Everybody can get them. They're free

00:03:12.740 if you get a library card. Don't make the $30 the barrier of you moving forward. Number two is

00:03:17.540 online courses and they can range from 50 to a hundred dollars up to three thousand dollars i've

00:03:22.500 spent eight thousand dollars for an online course but what i learned made me a hundred thousand so

00:03:27.380 was it worth the trade yes they teach you specific skills that you can use to level up your earning

00:03:33.060 power becoming more valuable you essentially want to buy the top courses for the skill just ask

00:03:37.940 groups of people what the top courses are and just buy those ones if you can afford it start at the

00:03:42.740 the top. Number three is events. $500 to $1,000 to attend an event could change your whole life.

00:03:48.500 And it's not only the skills you'll learn because you will at those events, it's the networking.

00:03:53.060 It's the other people. If you go to an event and meet one or two other people, they could become

00:03:57.680 allies, friends, peers that are on that same journey that you're on. Not only will you learn

00:04:03.500 faster because you can learn from their opportunities, but you'll also have somebody

00:04:06.780 to call when you get in a pickle. That is invaluable. Number four is group coaching

00:04:12.040 programs. And these can range from $1,000 to $5,000 up to $50,000. They all depends. But the

00:04:18.800 more you invest, the higher quality, the knowledge, the faster you can move there. You're not only

00:04:23.220 going to learn the skills. You're not only going to get the network, but you also get some

00:04:26.260 accountability because you have coaching to show you what it looks like to bring you into their

00:04:30.760 world and literally unpack their world for you to see. Once you see it, you can't unsee it. Once

00:04:36.980 your mind expands, it can't contract. And group coaching programs are one of the best ways to do

00:04:41.360 that. Number five is one-on-one coaching. Now this is an advanced move, especially if you hire

00:04:46.000 somebody that's really skilled, but getting in front of a person that has been there, doing it,

00:04:50.800 operating today to be able to show you how to do it can be the biggest ROI on your time and your

00:04:56.360 money. I've always had personal coaches because I like speed. I want to talk to the person that's

00:05:01.300 worth half a million dollars. It's built a massive media empire so that I can calibrate my ideas with

00:05:06.780 their strategy and i don't ask them what they've done i say if you were me based on my resources

00:05:11.900 what would you do today think about being someone that wants to go to the olympics if you met

00:05:16.680 somebody that was going to the olympics and asked them who they coach with and they said i don't

00:05:20.340 have a coach would you take them serious if you're serious sometimes you got to go all in on working

00:05:25.460 one-on-one with a coach so that you get that level of attention strategy and speed to execute on your

00:05:30.480 dreams but you won't be able to spend that kind of money if you're scared of losing it which leads

00:05:34.440 this directly to principle number three, which is don't fear money. Every human is born with a set

00:05:39.960 of money stories. We adopt them through our environment, through conversations with people

00:05:44.400 we admire, like our parents, like our friends. And all of a sudden, these money stories are

00:05:49.080 dictating our money decisions. I mean, I had this crazy belief that I thought that I needed to go

00:05:53.960 bankrupt if I wanted to be successful because I'd read that the three people I admired at some point

00:05:58.660 in their life all went bankrupt. Dave Ramsey, Walt Disney, Henry Ford, they all went bankrupt. So I

00:06:03.660 to believe that if i want to be successful like them i have to just get it out of the way think

00:06:07.660 about the types of decisions i allowed myself to make thinking that that was the norm good or bad

00:06:13.100 i'll tell you they were horrible i put myself in opportunities that are risky i was exposed to

00:06:18.460 losing my whole net worth luckily i never went through it and i saw that i had that belief and

00:06:22.620 i fixed it i mean you might have a belief that rich people are greedy or bad or evil if you

00:06:27.340 believe that rich people are greedy bad or evil are you going to push really hard to become a rich

00:06:31.980 person most people wouldn't the more you judge rich people and fear money the more you push it

00:06:36.620 away so what you want to do is you want to rewrite your beliefs around money so i love to say things

00:06:41.660 like i have wealth i have unlimited resources i am rich you don't have money problems you have

00:06:48.060 mindset problems and they're reflected in your bank account it's all about being more resourceful

00:06:52.540 you want to create from a place of abundance and watch your life transform audit your money

00:06:57.020 beliefs all those should be challenged one at a time write them down on a piece of paper and

00:07:01.500 really ask yourself, is it true? Where did that come from? Who taught me this? And knowing what

00:07:07.340 I know today, is that actually true? The untold truth here is that money will only amplify who

00:07:13.240 you already are. If you're not a good person, you won't be a good person. If you're a great person,

00:07:17.900 go get rich because you'll be an incredible person. Which leads us directly to principle

00:07:22.400 number four, which is money is a tool, not the goal. I became a multimillionaire at 28 and then

00:07:27.780 did nothing for almost two years. I drifted. Sure, I did some investments. Sure, I incubated

00:07:32.880 some new companies, but I really didn't do anything. I wasn't living up to my potential

00:07:36.600 because I thought being rich was the point. And now that I don't have to work, I'm not

00:07:40.860 supposed to work. But I was miserable. There was no purpose in my life. There was no mission.

00:07:45.020 There was no problems to solve. I didn't feel useful. I realized that financial freedom

00:07:48.820 means nothing. Just like you, money needs to be put to work. If you don't do anything

00:07:53.540 good with the resources you have, you won't get more. So what I did is I reinvested in my

00:07:58.080 environment. It turns out starting a business is the best way to do that. At the end of the day,

00:08:02.240 it doesn't matter if you have 1 million or 100 million. It's who you become in the process.

00:08:07.020 See, money isn't evil. Money is like a fork. It's a tool. It can either nourish you or it

00:08:11.960 could kill you. You decide. Don't make money the primary goal, but a tool to get to your goals.

00:08:17.240 And the easiest way to use this tool is to buy back your time, which leads us directly to

00:08:21.540 Principle number five, which is spend money to save time,

00:08:24.500 not time to save money.

00:08:26.160 See, broke people spend time to save money all the time.

00:08:29.540 They're like, I could do that myself.

00:08:30.940 I'll save money.

00:08:31.580 Rich people go out of their way to spend money to save time

00:08:35.820 because time they can't get more of.

00:08:37.700 Money they can go create more of.

00:08:39.240 You can't save yourself to wealth. 0.93

00:08:40.920 I know people talk about it all the time, but it's silly.

00:08:43.280 When I talk about wealth, I mean all aspects of your life.

00:08:46.140 The most successful people I know protect their time,

00:08:49.040 choosing goals to grow them with that time. Do you understand the flow? Is you have to

00:08:54.320 make money trading time to then buy back more time to invest in becoming more so that your

00:09:00.500 time is worth more. The untold truth about rich people is they value their time way more than

00:09:05.640 money. And society doesn't want you to know that because they need you to sit down and do the thing

00:09:09.460 and be a cog in the machine. And that is not how you create true wealth. Which leads us directly

00:09:13.760 to principle number six, which is 80% done by somebody else is 100% freaking awesome.

00:09:19.040 this is what I believe. I believe having other people support you in your dream is awesome.

00:09:24.660 Learning to let go, 100% required. My dad still mows his own lawn. He buys his own groceries. He

00:09:30.140 cleans his own house. And what's crazy is my dad owns real estate and property, and he even mows

00:09:34.760 the lawn at his real estate properties. And I know this may sound controversial to some people who

00:09:39.160 want to do everything themselves, but that's not how you build wealth. Remember one time I said,

00:09:42.860 dad, why do you mow the lawns at your properties? You can pay somebody to do that. He goes, well,

00:09:46.880 I like doing it. Then why don't you do the neighbor's lawn? Well, I don't like to do it

00:09:50.080 that much. He'll never have the time to go look at more real estate deals that could actually make

00:09:54.540 him a lot more than the money he's saving mowing lawns. Here's some big ideas. First off is people

00:09:59.960 don't buy your presence. They buy your standard. So you can have other people go do work for you

00:10:05.660 on your behalf. If you teach them, you train them and you set the standard for your employees and

00:10:11.180 how they show up for you. So you don't want to build a business that you eventually grow to

00:10:14.700 hate. And that's where most entrepreneurs get it wrong. They think the more they grow, the more

00:10:18.820 painful it's going to be. It doesn't have to be that way. If every time you grow, you start with

00:10:23.380 your calendar and buy back your time. So the more you grow, the more time you get back. You will

00:10:27.720 only make more money as fast as your ability to delegate. Million dollar companies were not built

00:10:33.180 off $10 tasks. Sure, you got to do them in the beginning, but I'm talking the first few months,

00:10:37.500 not the first few years. It doesn't mean other people need to do everything. You can even use

00:10:41.880 the 10-80-10 rule. The first 10% is ideation, right? You work with the person to ideate what

00:10:46.500 you want to create. The other 80% is the execution that that team member does for you. And the last

00:10:51.620 10% is the integration, whereas where you take that work and you integrate it into final pieces.

00:10:56.780 So you're still involved. There's so many opportunities you can do personal and

00:11:00.080 professional. I mean, even personal. Cleaners to clean your house, mow your lawn, run errands,

00:11:03.880 meal prep, use apps, order stuff, wash and full. The world we live in has people all around you

00:11:09.120 that can help you buy back your time.

00:11:10.420 It's just, can you learn to let go?

00:11:12.400 Which leads us directly to principle number seven,

00:11:14.540 which is be incompetent. 0.57

00:11:16.220 I recently had a short go viral where I said, 0.93

00:11:18.420 if you wanna be rich, be lazy,

00:11:20.140 but if you wanna be wealthy, be incompetent.

00:11:22.200 What people didn't realize is that if you can do something,

00:11:25.980 you'll always do it.

00:11:27.100 Your number one Achilles heel as you grow a business

00:11:29.820 is the thing you're best at

00:11:31.200 because it's the thing you're gonna judge the most

00:11:33.040 that somebody else can do for you

00:11:34.420 and that you're gonna easily jump back in

00:11:36.440 if something goes wrong.

00:11:37.480 If I had a restaurant and the chef quit, I'm not going to jump into the kitchen and start cooking.

00:11:42.200 I would go find a chef. But if I was a chef that owned a restaurant and the chef quit,

00:11:46.640 guaranteed they jump into that kitchen, they start cooking. Some of them get stuck in that

00:11:50.120 kitchen and don't have the time to actually grow the restaurant and they wonder why they go out

00:11:54.120 of business. This means you're going to have to learn how to work through people. And the key is

00:11:58.920 to be selective where you involve yourself in the process. You don't need to have all the answers.

00:12:03.460 Some of the smartest people in the world aren't rich. The beliefs are flawed. That's why

00:12:07.440 you can hire top talent, MBAs, consultants that are not entrepreneurial because they don't want

00:12:12.120 to take risk. You be that person, hire them to come in and bring all their brains to the problem.

00:12:16.800 And then you can create the scenario where everybody wins. The untold truth about money

00:12:21.100 is that some of the richest people on earth aren't that smart. You'll meet them and you'll

00:12:25.160 be like, what's so special about that person? They were willing to take risks. They were willing to

00:12:30.000 convince somebody else to join their team. They got out of that person's way so that person could

00:12:34.620 create value for them. They created the scenario where everybody could make money, including

00:12:38.560 themselves. They allowed everybody to participate and to others, they look not very smart. And to

00:12:43.920 the person that knows, genius. What matters more is who you surround yourself with, which leads us

00:12:49.200 directly into principle number eight, which is your network is your net worth. Rich people are

00:12:54.080 extremely careful with who they spend time with. They want to be around people. They're going to

00:12:58.020 push their thinking, give them energy and introduce them to new opportunities. You've probably heard

00:13:03.320 that it's the five people you spend the most time with.

00:13:05.500 I consider it the five people's opinion

00:13:07.440 you allow to influence you.

00:13:08.980 You can choose who are the people

00:13:10.340 that I admire their results

00:13:12.440 and I'm gonna give them their opinion over me, right?

00:13:15.200 Some people call it the power of attorney

00:13:16.640 when you give somebody else the ability to sign for you.

00:13:18.500 I want you to pick the people

00:13:19.800 who you give the power of opinion to

00:13:21.920 that whenever you make a decision,

00:13:23.480 you think, I wonder what those people

00:13:24.860 would think about that decision.

00:13:26.080 Not your family members, not your friends,

00:13:28.580 the people that you admire.

00:13:30.240 Those relationships, even if they're virtual at first,

00:13:32.680 are incredible opportunities for you

00:13:34.620 to calibrate your decisions.

00:13:36.140 If you wanna go fast,

00:13:37.240 be around people that are moving fast.

00:13:39.320 You need to look at who you're spending time with

00:13:41.080 and unfortunately cut back on the anchors holding you back.

00:13:44.680 Which leads us directly to our last

00:13:46.300 and most important principle,

00:13:47.860 which is clarify your purpose.

00:13:49.700 Remember that story of me doing nothing for two years?

00:13:52.380 I was miserable because I had no purpose.

00:13:54.960 The cool part about purpose

00:13:56.140 is that you get to define your own.

00:13:58.220 At any moment, right now,

00:14:00.000 you can choose what you wanna go create.

00:14:01.860 I remember reading this parable, and he's talking about the power of purpose, and he tells this

00:14:06.600 story about this guy that's walking down this dirt road, and he comes across some guy that's

00:14:10.240 kind of in a mood, and he's smashing on rocks, and he says, hey, you know, what are you doing?

00:14:13.700 I said, oh, I'm just making bricks. He's like, oh, that doesn't sound too fun. So he keeps walking

00:14:17.760 a little further, and he comes across another guy smashing on some rocks. He says, hey, what are you

00:14:21.140 doing? He goes, I'm making a wall. And he's kind of happy. He's making a wall. Oh, that's cool.

00:14:25.360 Still smashing on rocks. He keeps walking down the road a little further, and he comes across a guy

00:14:28.680 smashing on rocks says, what are you doing? He goes, I'm building a temple for everybody in my

00:14:32.580 community to be able to worship their God. And the guy said it with so much pride and excitement.

00:14:38.940 All three were doing the same work, but all three had different purpose. And that is the power of

00:14:43.900 purpose. Everybody's going to go through pain. Everything is going to be hard, but suffering is

00:14:48.900 optional and suffering is because you have no reason. You have no purpose. Anytime I've done

00:14:54.060 things like Ironmans, ultra races, CrossFit competitions. If I knew why I was doing it,

00:14:59.320 the training, the practice, and the competition was easier because it had purpose. The bigger

00:15:04.600 the purpose you have will destroy any obstacle in your way while you're building your wealth.

00:15:09.300 For me, it's my King's Club program, helping troubled youth. I will go out of my way in my

00:15:13.520 calendar to go spend time with kids, to mentor kids, and I will move mountains to make that

00:15:18.200 happen because that is my personal truth and my purpose. The biggest untold truth about money

00:15:22.900 is that building wealth from nothing is playing the long game. And most people would give up if

00:15:27.920 they don't have a purpose that they're chasing. Purpose is the fuel. Purpose is the drive. Purpose

00:15:32.480 is the direction. Purpose is the why. You need a big bag of why sometimes to remind yourself why

00:15:38.200 you're getting up so early and keep slugging away at it. Without understanding the reason you're

00:15:43.160 doing something, it can just feel like effort. As soon as you have purpose, it feels like a mission,

00:15:48.340 like your life's calling. You know what the coolest thing about having a calling is, is that inside of

00:15:52.460 it's got the word all in. You got to go all in on your purpose. If you want to learn the 40 brutal

00:15:58.000 truths I wish I knew in my 20s, click the link and I'll see you on the other side.

Dan Martell - November 19, 2024

The Untold Truth of Money - How to Get Rich Faster

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