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You know, no one has really ever given us the cheat codes to wealth. No one has ever stopped to tell us as we were growing up, hey, here is how you make significantly more money. Here's how you create insane wealth. Here's how you get to financial freedom. No one's ever told us that stuff, and me included. We've all had to learn this the hard way. And I always wonder, as I learned these big lessons, how amazing would it be if it was all just, like, built out and the map was just given to us? Now, each of us are different, have different skillsets, so it's always not the same map. But I think there are some common principles that if we can learn and employ and deploy in our lives, it changes our lives forever. So in today's episode, I'm going to break down for you the biggest wealth lessons that I've learned that has changed the very financial bloodline of my family. And I call this the wealth leverage formula. And I break it all down for you, starting right now.
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One thing is for certain, just because it's tried and true doesn't mean it's working right now. So the big question is this. Where can you learn what is working right now? The strategies, the tactics, the psychology, and.
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The exact how to. How to grow your business, how to.
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Blow up your personal brand and supercharge your personal growth. That is the question, and this podcast will give you the answer. My name is Sharan Srivatha, and welcome to business school.
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The big reason I'm recording this episode is because whenever I talk about money, even if I make references to it or a strategy behind it or an idea around how to get leverage, how to have financial freedom, the thinking process around it, the amount of feedback that I get is overwhelming. And to talk more about, hey, how do you exactly do it? Because the one thing that we are missing in our worlds is a clear blueprint of achieving financial freedom. Because it's a. It's a strange thing. There's so many businesses built around the business of money, but we are all stuck in a very strange trap. And that trap is how do you escape the time trades and actually build financial freedom, whatever financial freedom means to you. And that's exactly what I want to talk about today, is this wealth leverage formula. The things that I've totally learned over the last many years that I did not know about, that I had to learn the hard way that I want to share with you. And these are my views and my opinions, and I'll back them up with data to show You. But if I had learned these earlier in my life, it would have completely changed the trajectory overall. So let me ask, start with this big question. Here's why more income won't make you free, right? So for this definition of freedom or richness, let's talk about financial freedom as monthly passive income greater than monthly expenses. My money coaches, Russ Morgan and Joey Murray, you know, taught me, they said you just can't save financial freedom. Like what exactly is it? So we define it as where your monthly passive income is greater than your monthly expenses, which means that if that happens, you truly are financially free. And financial freedom in a lot of ways is just giving you full time freedom. That's all it is, right? So you don't have to trade the time for money. You don't have to go into an office, you don't have to do a job, you don't have any obligatory energy around it to get the result that you want. Now if you still have to work to sustain your lifestyle, that means you're truly not financially free. That's all it is. Now, even if you want to, you're still not truly financially free. Think about that. Even if you want to. So that's the big idea. Now this gets into this, this very triggering word of passive income. And I want to tell you about this myth of passive income that I call it, which is people think that passive income is this magical, effortless thing and that money just appears. They call it mailbox money. No one is going to just randomly wake up and start sending you checks in the mail. Like it does not work like that. So what is it in reality? In reality, passive income is really what I call pre funded income, meaning you have to pre fund it or you have to invest something upfront to deliver passive income for you on the back end. And I think you have to deliver one of two things. One, you invest capital to generate returns. So you have, you have $100,000 you invested in a multifamily syndication and that starts to pay you some cash flow and then a return over time. Well, that's good because your money invested is creating income for you, right? That's pre funded income. Secondarily, instead of pre funding it with capital, you can pre fund it with some effort. So for example, if you create something today that pays you later, you start a startup company today that pays you later, you create a revenue share organization that pays you income later, you an affiliate business where you put in the effort today. And then you, and then you affiliate software. And then the software keeps paying you over time or you build a, build a technology company and it pays you over time or you build media and that media is a piece of media on like a YouTube or what have you. And then every time it gets ad revenue, it continues to pay you over time. Maybe media or code or digital products, something like that. Right. But the key here is to really know and define Financial freedom is where monthly passive income is greater than monthly expenses, right? And so it's pre funded income. So the question you should keep asking is how do you pre fund this income? Now let me tell you what does not work, which is not a bad thing by the way. It's just it does not work to get you there faster. So getting a higher paying job won't make you financially free from the definition of financial freedom. It just means you have a higher priced time trade, right? That's all it is. So if you're making $50 an hour now tomor you get to make, you know, $100 an hour, well, it's not like all you're doing now is you have a higher price time trade. You still have to go to work and have more stress to deliver on that. Additionally, here's what I've seen most people do when they, when they go from making $50 an hour to $100 an hour, they did trade up their lifestyle. They're like, hey, I'm making more money, therefore I'm going to go buy more things. So net, net, they're in the same exact spot in a lot of ways. Even if they eke out the feeling that they're feeling richer and that's tough. And, and, and so the only way to stop trading time for money and start, and start leveraging wealth building tools is this. We have to know what they are. And most people never show us what they are. So I want to give you like just four big ideas on this, right? So number one, it doesn't matter what you're doing right now. You want to embrace the power of ownership and why a salary won't make you free. Now I, I, I know that several folks that are listening to this who have a really high paying salary and their income, you can't break your mindset out of it. And several of the folks that are listening to this also are like, man, I work with you, you pay me a salary. And I'm like, yes, but I want all of us, you have to just change your definition of financial freedom, otherwise this will never work. And let me give you a crazy stat, right? Almost 70% of the Forbes 400 richest Americans over the last many years were company founders. Right? They built wealth through ownership, not wages. And the ownership, of course is little, itty bitty, worth nothing up front. But when something happens, you get a good result out of it. There's a great quote that I heard which was like, you won't get rich renting out your time, you must own equity. Right? You won't get rich renting out time. You must own equity. So I'll give you a crazy story. I don't if you've ever heard of this. This is the Microsoft stock option program. And it, it's wild how many millionaires came out of that. So then in the early 1980s, Microsoft was going super fast and Bill Gates offered employees stock options instead of higher salaries. And that tied the belief of the company. That was very early on. Nobody was giving away equity at that time to their employees. But many employees preferred the steady paycheck, thinking the stock was too risky. And the crazy part is they thought that the company that they work for, that they believed in, was too risky, that they had control over, which is crazy to me. Right. So therefore, whoever took the stock saw life changing wealth. And Microsoft created over 12,000 millionaires and 3 billionaires. I think about that for a second. 12,000 millionaires and 3 billionaires. And I think that number today is significantly more from what has happened overall. But the employees who only took salaries missed out on millions of dollars. So therefore, this proves that owning a piece of the business beats earning a paycheck. However, we know that you need a steady income to kind of maintain lifestyle so you can go build the other stuff. I totally get that. Right. So I'm trying to share the broader idea that we should all be seeking, yearning, trying to find that next owning equity in something that grows a business, a stock, a piece of real estate, intellectual property, media. We should all find a way to think about how we do that. And if we, if we do that, two things happen. One, we're vested in this growth. No one's just going to give you a 10% ownership in a company. When you have 10% ownership in a company, you feel an ownership of the company. You feel this ownership energy. You feel partnership energy. You feel like you want to contribute to that company to grow. That's why owners don't give up. That's why entrepreneurs don't give up. That's why they fight harder because they believe in something. And that's why this is super important. That's why you, at some point, you have to shift from being a quote, worker to an owner. Because if you can't own a company, at least own a stake in a company. A lot of people are very zero or 100 mindset on this. Like I need to own 100% of the company, I need to operate the 100% of the company. Like you don't need all of that. I think Jeff Bezos owns like 8% of Amazon and Zuckerberg owns like 11% of Facebook. Like this, you don't have to own a lot of it. And the crazy part around this is I think a lot about it as hey, if I don't own this entire business, can I own a piece of it and then contribute my, my way? And I will tell you the number one reason why most successful people who are high paid employees, well, those are golden handcuffs, right? You have no choice. You can't just quit like your lifestyle depends on it. And a high salary is still a trap if it tides you, if it's kind of ties you to trading time. That's what I'm trying to say. All right, that was big idea number one, which is you got to think about the power of ownership. How do you get a piece of ownership in some growing asset? I just want you to think about how do I get a piece of ownership in some growing asset. Maybe a media company, may be a piece of real estate, maybe a partnership, maybe a coaching business, maybe of revenue share business, maybe a stock in the company that I already have. How do you get a piece of ownership in a growing asset? That is really step, kind of step number one. Here's step number two, which is you got to have some leverages, which meaning how do you scale your income? When I say scale formula, grow it without scaling your work. And this is what most people kind of don't think about, which is there is, you know, infinite projects and opportunities, but only finite time. So everything is going to be constrained by the finite resource. So if there's infinite time and infinite, you know, opportunity, which is what's gonna, what's happening in this AI world where you have, you know, 50 AI agents that can make, you know, a 1,000 calls at a time, as opposed to you having to build the call center where you have to then train people that can only make, you know, call it, you know, 100 calls an hour. And so and these people and these AI agents can do it at scale for low cost and better than most humans, which is why the infinite to infinite paradigm is important. But we are dealing with a finite Paradigm, you have finite time, I have finite time. How do you get scale without, you know, how do you scale income without scaling time? So I'll give you an example. Many of you use WhatsApp. And WhatsApp had, I think, 55 employees when it was acquired for $19 billion. Like that is roughly $350 million per employee, you know, thanks to the tech leverage. I always think about this quote, which is, give me a lever long enough and I shall move the world. This was the first, you know, and they teach you geometry with Archimedes, they teach you that. So what is this, you know, kind of Instagram? Then you have this Instagram billion dollar exit, right? Same exact thing. So in 2010, Kevin Systrom and Mike Krieger, if you know, built Instagram with a very tiny team, but they faced major competition from social media giants that were already getting main traction, like Facebook and Twitter. Therefore, what happened, they leveraged technology in their networks and they kept the app very simple and that's why it went viral. But companies that scaled with more employees instead of leverage, like Kodak, who haven't even, we haven't even seen or heard of anymore, struggle big time, right? That's why Facebook bought Instagram for a billion dollars, which is 13 employees. That's like $75 million, I think, per employee on paper. So our thinking here is how can we get some infinite leverage? So you, you, there's only kind of, I think about getting leverage in three ways. So please, please think about this, right? There is a fourth way, but let's start about the fourth way for a second. The fourth way is you can get, everybody thinks that you get leverage with people because people will always say, hey, if you're not the assistant, you know, if you don't have an assistant, you're the assistant. Go hire more people to do that thing. That's fine, but that's a very intensive capital resource, right? So if you, in this modern world, how do you truly get leverage? There's three big ways and way number one is you say, hey, how can I be technology first or AI first? If you don't ask that question, you'll never think about scale the right way. So for example, if you said, hey, how can I be, you know, we want to have a scheduling team for all our appointments. Great, ask the first question, how can I be technology first or AI first? Instead of getting somebody to operate the phones. And if you think about it that way, you get technology based leverage where you can automate and outsource and build Scalable products from day one just by asking the question, if I could not hire a person for this, how would I do it with technology or AI? That's number one. And number two, people don't realize this, but why are content creators spending so much time on all these media platforms? Many of you and I connected through the online media platform. Hey, this, this medium right now is an online media platform. You, in the olden days, you would never get any of this. They would be behind a paywall. You'd have to pay a ton of money or you have to come to a seminar. And now, whatever the. I'm sharing the best ideas that I have on the things I'm working on every single day. For you to do whatever you would like with the media leverage is insane. If you can grow a brand through a YouTube or a podcast or Instagram or Twitter, et cetera, we have actually seen, whether you like it or not, the social media has dramatically tipped world political powers, changed elections, stopped wars, or started them. And Even people like Mr. Beast are a cultural phenomenon because of the media play. You may even think, how do you know Oprah? Oprah is a media play, right? What is CNN and Fox News and Tucker Carlson and Patrick? But David, they're media plays. What is Gary Vaynerchuk? He's a media play. They have built these media companies, which in essence, what do they sell? They sell attention. And so a lot of people don't understand, like this, this idea of owning an asset. They're like, oh, you need to become a media company. They don't know what it means. And the main idea behind becoming a media company is that you sell attention. And if people buy your attention now, you can monetize it with a lot of things. So the job of media company is to do what is to pay money to get ads, to watch, to have 100,000 people or 100 million people watch your stuff out of gaming, a sporting event or the super bowl, or you put content out every day and you get hundreds of thousands or millions of people watching your stuff. You are selling attention. And the best part is the reason why you're selling attention, but you're selling attention for free. That's the greatest trade you can make right now. And so when people say they move the free line, the free line has been moved only because I am spending money and time creating this piece of content to distribute it to you for free. Right? And the main idea behind that is, sure, I have full generosity around it. I'm not trying to get you to buy Anything. But that's. But. But most of the world is doing it differently, right? They are using their media platform to sell something at the end of the day, but they're not selling the thing, they're selling the attention. The entire job of a media company is to sell attention. And when you can sell attention for free, that's like saying the entire job of Apple is to sell technology products and they sell their products for free. Like, think about how crazy that would be. That is why we live in a generation where not being a content creator, not being a media producer is actually irresponsible. If you don't make it, it's irresponsible. Like, I know several CEOs of large companies who have no media presence. And this is what I say. I say a leader without a platform is like a samurai without a sword. Like, think about that for a second. A leader without a platform is like a samurai without a sword. So the reason you know Elon, the reason you know Bezos, the reason you know you know Chamath, the reason you know Ray Dalio, they're leaders with platforms. And you don't know anything about the CEO of ge, you don't know anything about the CEO of Disney. Well, he's actually pretty good, by the way. You don't know anything about, you know, the CEO of Netflix because the, the most people can't name why. Because a, a leader without a platform is like a samurai without a sword. And they're relive in the golden era of media leverage, the distribution of free content. Like, it has to change at some point and I don't know how it's going to morph. But as of today, we are in the gold rush of building a media company. Those that build a media company today will reap the rewards for the foreseeable future, especially with all this AI taking over. So number one, use technology as leverage. Automate, outsource, you know that stuff. AI first. Number two, use media as leverage. Media is in the business of selling attention for free, which is insane. And number three, you have some capital leverage, right? Could you invest the money to make money rather than relying solely on earned income? I'll explain this to you. Let me explain this to you, right? As most people, just so you know, and I don't know if this is, this sounds like you, but this used to be me, right? And I'm telling you, this really used to be me. And when I say used to be me, I mean it by I've only gotten over 80% of it and What I mean by that is when my money coaches, Russ Morgan and Joey Murray kind of met me for the first time, they were like, sean, how much money are you sitting on in cash? And I gave a number and they literally fell out of their chair. They're like, why would you have, you know, a lot of your liquidity in cash? And I said, well, you know, I didn't come from a lot, so having money in my checking account makes me feel like I feel secure. Well, I think you all, many of you may feel the same way. I think you, as you're listening, may be like, huh, that kind of sounds like me. I also know that most people, and I say Most, I say 95% of people keep significantly more operating cash in their account so they can feel better about themselves, so they can feel more secure even though they don't need it for their day to day operations. Now, some of us are. I know several of my friends that are on the opposite end of the misfortune of the spectrum where they're having some cash flow issues right now. And I love you, I appreciate you, I'm praying for you. But I promise you it will get better if you have this thinking in mind. And so what I mean by this is Joey Murray told me, he goes, sharon, what you have is lazy cash. I was like, what do you mean? He's like, your cash is not working for you. I was like, no, it's okay. It makes me feel better. It's working for me because it makes me feel secure. He's like, yeah, but think about every say. He's like, assuming you have a hundred thousand dollars in cash, right? Let's go, let's go with the random number. He's like, assume each of your $100,000 is each. You have $1,000 per employee. So let's say, Sharon, you walk into your office, you have $100,000 and you have $1,000 per employee. That means that you have 100 employees just sitting around in your office, that you're paying $1,000 that day to not do anything. He goes, they're just sitting around. He goes, you have your 100,000 employees just sitting around doing nothing for you. They're just there to make you feel better about yourself. That's lazy cash. And I said, he asked me an amazing question. He said, is this lazy cash? He's like, do you want the cash to make you feel secure or would just the access to the cash make you feel secure? What a great question. I think about it. He said, do you need the cash to feel secure or you need access to the cash when you need it to feel secure. And at the end of the day, I didn't need the cash. So I was like, well, I don't need the cash. I just want to know that if something ever happened to us because you have immigrant mentality that is poor starting off, you're like, I don't know, what if I need it? What if something happens? And that's why you hoard the cash. And so if you have access to the cash, then why would you worry? And that's when we started building our own bank. That's when we started creating a passive income operating system with a web and a network of, you know, infinite banking concept related daisy chain, whole life policies to build a system, a passive income operating system, a cash flow system that allows for me to not have lazy cash. Now if I did not do that, my capital would have no leverage and I have lazy cash. I'm going to wager right now you probably fall into one of two camps. Why camp? Number one, you're just working through some cash flow issues right now. I promise you things will get better. I've been praying for you. Work on your high, you know, your high income skills. Number two, you're probably sitting on some cash and that cash is lazy cash. And you are only doing it to feel better and feel more secure. And you have to answer this question, is the ca having the cash the answer or having access to the cash the answer. If it's having access to the cash, then you can design it, deploy it and deliver it so that you can get capital leverage so you can have your money make more money for you. All right, hopefully that was helpful. All right, here's part three. A lot of people talk about this idea of compounding, but no one really, it actually explains this to you. And I want to tell you what I really mean by this because we have to figure out how to make money work for you. The at the end of the day, everything, the ultimate goal in all of this is to have your money work for you. So it does. The goal is not to make more money. The goal is not to have a big company. The goal, the goal is to have money so that you could have your money work for you. That is the ultimate goal. If that is the ultimate goal, we have to say, huh? By doing this activity today, does it get me the money so that I can invest the money to make more money for me? That is the only path to all of this leverage. There is no other path, right? So you take everybody in the world. We say, oh, yeah, it's easy for him because he can just write a check. Well, what is he doing? He's using his money to make more money. And that is the power of compounding. So let me give you a crazy example, right? 99% of Warren Buffett's wealth came after his 65th birthday because of long term compounding. Now the, his, his partner, the late, great, amazing Charlie Munger, he said the first rule of compounding, never interrupted unnecessarily. Right? That's, I, I love that. Because you want to really be true that. So let me give you, let me give you the Buffett story. It'll blow your mind. Like, you have to listen to this. It will blow your mind. So Buffett started investing at age 11 because he was just a prodigy that way. And he invested all his gains instead of cashing out. So he, whatever he made, he reinvested. But his early wealth grew really, really slowly. And without, you know, just seeing that growth, it was, most people would have been like, ah, what is this? And he quit early. Therefore, this guy stayed invested for over 80 years, letting compounding work for him. Now, let me, let me share the stat with you. But if he had stopped at 60, he'd be worth just 11 million. But now he's worth over 100. Like, I mean, he's worth 100 plus billion. If he had stopped at 60, he would have been worth less than 11 million. But now he's with over 100 billion. All in the power of compounding. So what we're trying to say, the wealth isn't about these quick wins. It's about playing the long game and playing the long game. The whole get rich quick thing does not work by design. It may work by luck, but it did not work by design. So I think you've heard this. If you've been on the pod for a while, you probably heard me say, you know, the thematic decades. The idea is you say, hey, well, I'm in my 30s. What am I? What do I want to accomplish in my 30s? Who do I want to be in my 30s thinking decades, not years, right? And the other is, if you make profits from your investing, if you make, you know, more money than your, than your lifestyle, then you got to reinvest your profits. I see profits as anything over my expenses. Anything over my monthly expenses is profit. Anything over my gain from my investments is profit. And my goal is to keep reinvesting profits because I don't need to Take profits off the table. And we just have to believe that. I will tell you the future is already here. You just don't know it yet. You just don't see it yet. And you are already like, if you future proof and say, I'm going to be this person, like I'm building this for myself ten years from now. It's a really powerful thing. So you always have your 10 year future self that you're taking care of. The what you don't, what you want to do. Like the easiest hack in life is to be in service of your future self, right? You say, okay, in 10 years, am I going to be faster or slower? Well, slower. Which means I need to be healthier. Therefore, let me work out today so that my future self will be thankful for what I did. Hey, in my future self I probably have more risk for XYZ health issue. Great. Does that mean I eat healthier today in service of my future self? Hey, my future self is going to need more money because I'm going to have less time. Great. Can I start to what can I do in service of my future self? Most people trade their future self for today's luxury, for today's lifestyle. You want to be in service of your future self because there's no one that is going to take care of your future self except you. Like when people say no one is coming to save you, what do they mean? They mean that if you don't plan for your future self, then what happens? Everything that we do is in service of our future self. And you'll be like, well, Sharon, that seems very morbid. It's not. It's. The question is, what do you want to be doing tomorrow? Like, let's. The greatest question Dean Jackson always has to ask is, well, the goal is to wake up and say, what would I like to do today? Right? If that's the case, if that's what the entire goal is, then what should you do? You should do everything in service of your future self. Everything. Because that I will tell you, a lot of people feel like they need accountability, right? They're like, oh, I hold me accountable to make this call. Well, you don't need, I don't need accountability. I stopped needing accountability when I realized this concept that I am only doing something in service of my future self. And let me tell you why. So let's say I needed to. My son is a, you know, play soccer. And let's say his soccer Practice goes from 5:30pm to 7:00pm Well, I, I, I'm obligated to pick my son up from soccer at 7pm I know that. Right. So I don't need any accountability. I don't need anybody to remind me. I don't, I don't need somebody checking with me saying, did you go get Neil? No. Like, I'm going to do it because I'm responsible. Because I know that I'm doing this in service of my son and he can't do it himself. That's very important. Please, like, think about that. I'm doing it for my son and because he can't do it himself. Right? So who is my future self? My future self is me. Call it five years from now, and I'm doing something in service of my future self because my future self can't do it himself. I'm going to put insane pressure on my future self to do something and my future self can't do himself. That's the problem. As soon as I realized this idea, idea of, oh, the reason I don't need accountability anymore is because I am doing something in service of someone else because they can't do it themselves. And when you do that, you realize something powerful because you are insanely responsible for everything. Cool. All right. So I went on a rant on that one. I really wanted you to kind of think about that. Here's the next part. A lot of people kind of don't think about this idea, but you've got to be valuable in the marketplace. And when I say valuable, what is value? Value is just a high value skill. Now, I was talking to my friend the other day and he, he said, well, Sharon, hey, you know, he and I went to college together and he's, he's done well, but as a school teacher and that fundamentally, you know, you cannot compare school teacher's income to an entrepreneur's income who has done pretty well. And he's like, sean, I really want to make, you know, I think he's making like he's in a really great school district and he loves his job. And I think he's making like, you know, close to $85,000 a year or something like that. And he said, sean, I really want to make my first million million dollars. And I go, okay. And I asked him, I said, do you know anybody that is making a million dollars? And he said, yes. And I said, you know them well. He goes, yeah. I go, all right. I said, just be really honest. What is one skill that they have that you don't have? And he said something amazing to me. He's like, well, they, you know, they have 15 years of business and sales experience and I don't have that. And I said, okay, well, let's take sales as an experience. Well, how, what would you say is the delta? Like I said, I said to him, if your skill is a level one, what do you think their skill is? He's like, well, it's at least a level 10 or a level 20. So I said, you know, somebody that is making a million dollars, that is your goal and they have a skill that you don't have that is 10 to 20x better. So I said, this guy is 10 to 20x better than you? He says, yes. And I said, okay, that's why he's making 10-20x more than you. Right? And that people don't realize that. They just think that, oh, if I have the courage and the tenacity, I'll be able to do whatever I want. That's not the answer. You'll start to realize, why do people make more money? Why? The, the reason is if you just said, hey, that person has like, I always look at it. I'm like, when I get irritated, I'm like, if he can do it, I can do it too. That's the first starting point. Then I'm like, why does he make that money? Like, what skill does she or he have that I don't have? Or what did they have better than I do? And I keep watching, oh, does is she a 10 times better presenter than me? Is she a 10 times better, has better media than me? Is she 10 times better on camera than me? Is she 10 times Better writer than me? She 10 times Better business strategies than me. Is she 10 times More compassion than me? What skill does she have that I don't have? And then I can work on developing that skill because I know that if I get a skill in my repertoire 10 times more, I'll crush it. You're unbeatable, right? The world's top entrepreneurs have to master a rare high value skill that commands leverage. And that is your skill. And if you don't have that skill, which is teaching, coaching, copywriting, selling media, video, you know, something deeply engineering sales. If you don't have that skill, and the only way you have the skill is if you can teach it without any notes and guarantee results. I'll say this again. The only way you have, you have command and leverage and mastery over the skill. If you can teach it and package it elegantly and also guarantee the results, till then you don't have it. And if you don't have it. And you're like, oh sure, I'm a great salesman. I'm like, can you teach it in an elegant way and guarantee the result that whoever you taught it to will win. Till then, you don't have mastery. You're leveraging your talent. Let me give you a 10 second story about this. So many of us know Jimmy Donaldson also, aka Mr. Beast. And Mr. Beast created this insane kind of media leverage, right? So Mr. Beast started making YouTube videos as a teenager and he was like experimenting for years doing this stuff. But unlike a traditional business, he had to scale through media, not through a product. Because he wasn't selling anything, he was only selling attention and getting paid a revenue share from attention. Therefore, he reinvested all his earnings into bigger and more viral videos, growing him exponentially. Every time he made more money, he put it back into making more videos. But most YouTubers, you know, burn out because they chase the short term profit. They want the little income spiff and they don't reinvest it. So therefore Mr. Beast's empire, I think he was offered like over a billion dollars for it and that he has proven that content can scale indefinitely, infinitely. Which is why if you can focus on a skill or think about acquiring a skill which does not involve a direct time trade like a coding or capital or investing or media or sales, right? If you can do that, then powerful things start to happen. And this is when, you know, when I talked about like having mastery or you can turn your knowledge into an asset where you write or teach or consult, where you explain something and guarantee a result in ways that's just amazing. And the more you do this thing, the more you get compounding. Because compounding is the only way all of this stuff works. All right, I give you a bunch of ideas, so let me kind of quickly go through my head and summarize it for you. So number one, we know that passive income isn't magic. It's pre funded income. You either pre funded with capital or you pre funded with effort. Number two, you can't really work your way to financial freedom. You have that you need, you need more money. The kind of, the more money and giving up time does not work, which means it just violates the definition. If you can't have passive income greater than monthly expenses. The salary is a good starting point now. The income is a good starting point now. But you have to aim to own equity, own, think about and try to own equity in a growing asset, own equity in a company, own equity in a piece of real estate. Own equity in a revenue share program. Own equity in something that grows. Because when you do that, you get to participate in that growth overall. You got to use some leverage. If you don't have leverage, you will always have the time trade. And the leverage comes from either a technology, mainly technology, media, capital, or at least humans, but at least technology, media and capital. I would say if you can't come up with a thematic decade, saying, hey, in this, you know, in, in my 30s or in my 40s, I'm going to create my first $20,000 in passive income. And if that's all your goal was, you'd be doggedly focused on it. And please know this, every entrepreneur has that is, that is doing well, has a very unique and niche and a rare high value skill. So when you compare yourself against that person, you go like, wow, he can speak 10 times better than me. He can think and write 10 times better than me. When you know that, that's when you know that the marketplace is rewarding that high value skill. All right, so hopefully that was helpful. I wanted to give you those, those big, big ideas. My main lesson for you in all of this is the more we get to kind of talk about money, talk about financial freedom, talk about leverage, it allows you to think about it more. We see a lot of talks about health and vitality or taking care of our children and family and all of that, you know, peace and meditation. But wealth is such a, money and wealth are such sensitive topics. And hopefully what I'm sharing is just my experience. What I'm sharing is just my ideas, the things that I've learned. And you know, I'm not trying to shatter your beliefs in any way, but just to give you a new perspective. So hopefully that's helpful to you because I, I, there's nothing more important than me wanting to see you win because I know this. I know that if you win, when you win, you will change the world. And the world needs more people like you to change the world. So please think about these ideas. If some of this was interesting to you, can you just do me a favor? It took me a while, as you know, to, to kind of think about and record all of this. So can you just screenshot this and tag me the screenshot this, post it and tag me that way. I know you like this and I make more like this for you. So this is the, the wealth leverage formula. I learned these lessons over time. I wish I'd learned them sooner, but I hope you like them. So if you like this. Can you please screenshot this and tag me so I can make more like this for you?
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