Build with Leila Hormozi

Episode 333: Financial Freedom Is Easy, After You Do THIS

Date: December 23, 2025
Host: Leila Hormozi

Episode Overview

In this high-impact solo episode, Leila Hormozi distills her journey from having no money at 20 to becoming a millionaire at 24—and later reaching $100 million by 28—by sharing five financial habits that anyone must quit to achieve genuine financial freedom. Known for her direct style, Leila explores the mental models and emotional pitfalls that hold people back, debunks myths about wealth, and offers actionable advice, drawing on her personal experiences and observations from working with ultra-wealthy individuals.

Key Discussion Points & Insights

1. Your Bank Account Isn’t Holding You Back—Your Brain Is

• Leila opens by asserting that the root of financial struggle is often mindset, not lack of money.
  • “Your bank account isn't what keeps you poor. Your brain is.” (00:38)

2. Quit the One Stupid Decision Habit

(00:44–06:37)

• Many people make many smart choices, only to undo progress with one big, impulsive mistake.
• Impulse decisions account for 40–80% of all purchases.
• Emotional spending often comes from stress, fatigue, or the desire to impress or cope.
• Personal Example: Leila almost signed a lease for a car that would have cost 50% of her paycheck, just to keep up appearances.
  • “You can be disciplined 99% of the time, but if you let your emotions run wild over that 1%, you gotta start over.” (05:08)
• Actionable Tip: Pause before big purchases; wait at least two days.
  • “You will be shocked at how many urges disappear overnight.” (06:23)

3. Quit Waiting for the Big Win

(06:38–11:27)

• Many people expect wealth to come from a single big break or lucky event, but it’s actually the result of countless small, boring, compounding decisions made over years.
• Quote:
  • “Wealth doesn't come from one lucky shot. It comes from thousands of small, very boring, compounding decisions over years.” (07:11)
• Shares wisdom from Warren Buffett:
  • “My life has been a product of compound interest.” (08:08)
• Even non-financial wins—relationships, fitness—come from consistency, not single breakthroughs.
• Stock Market Example: $10,000 invested at 25 becomes $145,000 by 65; at 35, only $76,000—same action, half the outcome for waiting.
• Advice:
  • “Pick committing to improving one thing by 1% each day over the next year. Do not wait for the big moment.” (10:28)

4. Quit Lifestyle Inflation

(11:28–16:18)

• When income increases, most people also increase expenses, so despite earning more, they never actually build wealth.
• Key Insight:
  • “If your expenses rise as fast as your income, you never upgrade your life. You're just upgrading the treadmill that you're running on.” (12:07)
• Warns about raising your “baseline” so luxuries become necessities, creating stress and making it hard to scale back.
• Leila stays mindful not to inflate her lifestyle unnecessarily, even when she easily could.
  • “Wealth is what you keep, not what you make.” (14:39)
• Highlights that even investing $5,000/year for 30 years can grow to over a million dollars (at 7%), but only if that money is not spent.
• Simple Rule:
  • “The next time you get a raise, increase your savings, not your spending.” (15:55)

5. Quit Refusing to Face Reality

(16:19–21:35)

• Most people aren’t bad with money; they’re afraid of it and avoid the reality of their finances.
• “People who understand basic math concepts—interest rates, compounding, risk—they are significantly more likely to build wealth.” (17:18)
• Many just say, “I’m not good with numbers” and avoid looking at their accounts or budgets.
• Practical Use of Tech:
  • “Nowadays, doing what I'm talking about, get on ChatGPT. You can do it right now... There's just no excuses anymore.” (18:10)
• Warning: Avoidance provides “temporary comfort and very permanent consequences.”
• Weekly Habit:
  • “Look at your bank account, ask yourself and just write down: how much went in, how much came out, what's left.” (20:30)
• If you ignore where your money is going, “just consider it already gone.” (21:27)

6. Quit Buying Feelings Instead of Assets

(21:36–26:25)

• Emotional spending is about chasing feelings (status, comfort, stress relief), not things.
• Studies show higher emotional intelligence links to less materialism and compulsive buying.
• Cycle of Emotional Spending:
  • People shop to fill emotional voids; the feeling returns, and they repeat the process—hindering real wealth-building.
  • “Money doesn't buy things, it buys emotions.” (22:10)
• Key Reflection:
  • “Every dollar that you blow trying to buy yourself a feeling is a dollar that you could have used to build freedom in your life. Assets appreciate, feelings depreciate.” (25:03)
• Before a purchase, ask: What feeling am I trying to buy? Address the root emotion, don’t manage symptoms with shopping.

Most Notable Quotes

• On Mindset:

  • “Your bank account isn't what keeps you poor. Your brain is.” (00:38)

• On Impulse Spending:

  • “You can be disciplined 99% of the time, but if you let your emotions run wild over that 1%, you gotta start over.” (05:08)

• On Wealth Creation:

  • “Wealth doesn't come from one lucky shot. It comes from thousands of small, very boring, compounding decisions over years.” (07:11)

• On Wealth Preservation:

  • “Wealth is what you keep, not what you make.” (14:39)

• On Facing Finances:

  • “Avoidance gives you a very temporary feeling of comfort and very permanent consequences.” (18:44)

• On Emotional Spending:

  • “Money doesn't buy things, it buys emotions.” (22:10)
  • “Assets appreciate, feelings depreciate.” (25:03)

Actionable Takeaways

• Guard against emotional and impulse purchases—wait two days before big buys.
• Don’t expect a single big break; build wealth through consistent, small decisions.
• When your income increases, grow your savings instead of your spending.
• Face your financial reality weekly; know your numbers and use available technology if needed.
• Recognize when you’re trying to buy a feeling; address the underlying emotion, not the symptom.

Closing Challenge

Leila ends by urging listeners to reflect honestly:

“The bottom line is...the worst money habits, they're not in your bank account right? They're in your head.... Which of these five habits are you guilty of? Pick one. Cut it out.” (26:16)

For listeners who want clarity, discipline, and lasting wealth, this episode is a concise masterclass in replacing self-sabotaging money habits with simple, proven strategies for financial freedom—delivered in classic no-nonsense Leila Hormozi style.