← Money And Wealth With John Hope Bryant
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- [00:00]
John Hope Bryant
This is an iHeart podcast.
- [00:06]
Coca Cola / Commercial Voice
What a matchup we got y'.
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John Hope Bryant
All.
- [00:07]
Coca Cola / Commercial Voice
This is that classic HBCU vibe. Non stop action. The band is rocking and the crowd lit. Chance echo drum beat everybody showing that school pride. A game like this. Yeah, it calls for an ice cold Coca Cola. Ah, crisp and refreshing. That's a game changer right there. Yeah, that taste always hits the right note. Just like the band at halftime. And just like that, we're back at it. Passionate fans, school colors everywhere and an ice cold Coca Cola. That's a winning combo. No matter the sport, no matter the yard. Everybody knows fan work is thirsty work. So grab a Coca Cola and keep that HBCU pride going.
- [00:52]
State Farm / Commercial Voice
The wait was worth it. The keys to your dream home have been secured. Now comes time to fill it with memories. But first, furniture and movers. When's the housewarming? Who's cooking? Or should you cater? All that planning can be stressful, but ensuring your home shouldn't be. And that's where State Farm comes in. Because State Farm agents can help you choose the coverage you need. Just call, go online or check out the app. An agent is ready to help so you can focus on showing off your new home. If you know, you know like a good neighbor, stay. State Farm is there.
- [01:22]
Coca Cola / Commercial Voice
Mint is still $15 a month for premium wireless and if you haven't made the switch yet, here are 15 reasons why you should 1.
- [01:30]
John Hope Bryant
It's $15 a month. 2.
- [01:32]
Coca Cola / Commercial Voice
Seriously, it's $15 a month. 3. No big contracts.
- [01:36]
Annabe / Commercial Voice
4.
- [01:37]
John Hope Bryant
I use it. 5. My mom uses it. Are you.
- [01:39]
Coca Cola / Commercial Voice
Are you playing me off? That's what's happening, right? Okay, give it a try@mintmobile.com Switch upfront.
- [01:45]
Annabe / Commercial Voice
Payment of $45 for a 3 month plan, $15 per month equivalent required. New customer offer first 3 months only, then full price plan options available, taxes and fees extra. See mintmobile.com tired of spills and stains on your sofa? Wash away your worries with Anabe Annabe is the only machine washable sofa inside and out where designer quality meets budget friendly prices. That's right, sofas start at just $699. Enjoy a no risk experience with pet friendly stain resistant and changeable slipcovers made with performance fabric. Experience cloud like comfort with high resilience foam that's hypoallergenic and never needs fluffing. The sturdy steel frame ensures longevity and the modular pieces can be rearranged anytime. Shop washablesofas.com for early Black Friday savings up to 60% off site wide backed by a 30 day satisfaction guarantee. If you're not absolutely in love, send it back for a full refund. No return, shipping or restocking fees. Every penny back. Upgrade now@washablesofas.com Offers are subject to change and certain restrictions may apply.
- [02:52]
Coca Cola / Commercial Voice
Limu Ku and Doug. Here we have the Limu Emu in its natural habitat, helping people customize their car insurance and save hundreds with Liberty Mutual. Fascinating. It's accompanied by his natural ally, Doug.
- [03:10]
John Hope Bryant
Uh, Limu is that guy with the binoculars watching us.
- [03:13]
Coca Cola / Commercial Voice
Cut the camera. They see us. Only pay for what you need@libertymutual.com Liberty Liberty. Liberty Liberty.
- [03:20]
John Hope Bryant
And written by Liberty Mutual Insurance Company.
- [03:21]
Coca Cola / Commercial Voice
Affiliates excludes Massachusetts.
- [03:23]
John Hope Bryant
Welcome to Money and Wealth with John Hope Bryant, a production of the Black Effect podcast network and iHeartRadio. Hey, hey, hey. This is John Hope Bryant. This is Money and Wealth on the Black Effect Network. And this is an episode that I was inspired to do to give people clarity. There's a lot of misinformation out there. And unfortunately, when you have made a certain level of success, you may assume that people understand what's real from what's not. As they would say real or Memorex back in the day. And that is a presumption. And to assume is to make an ass out of you and me. So we're not going to do that. I'm apologizing whenever I assume or presume that somebody knows something. I remember I asked Quincy Jones, how do you get so smart? God rest his soul, he said, I'm just nosy as hell, John. I want to know everything about everything. And he would sit around and ask me questions repeatedly about certain topics that he was not an expert in. When I was around, hanging around, talking about TI in the studio, I'd ask him questions endlessly about the music business or Killer Mike, my brother. Same thing. And then when we were talking about business, they would ask me questions endlessly. My brother, Bishop T.D. jakes, would ask me questions endlessly about real estate. And I didn't realize that they were going to their own version of a master class. No different than when I Talked to Bishop T.D. jakes about faith. I'm going to my version or his version of a master class, right? Talk to Ambassador Andrew Young, civil rights icon, Dr. King's right arm, the man who helped to build modern Atlanta into the only international city in the south, the only lieutenant of Dr. King to build a city. Talking to him about civil rights and social justice and the right way to go and the right way to build and the right way to live. I went to his master class. And so I've had to get out of my own way and not assume that things are obvious. So let me now take a moment as I hear all of these folks out here talking about how easy money is and how easy it is to make it and all these people who so supposedly are millionaires and tens of millionaires and that I just needed to break this down. So here is the topic for today. The difference between being rich and being wealthy. Pull up a chair, sit down on your bench, Sit down in the kitchen, grab a cup of coffee, take this podcast to the barbershop or the nail salon and gather your friends and let's have a conversation. I have a hat on right now that's about being lucky. This is my brand for it says Live Lucky. My brand for it's by Black Clover, Black Clover, the manufacturer. But Live Lucky is my brand for my company. And it even says on the bib, live Lucky. You can live lucky, but that doesn't mean you're going to be lucky. And anybody who is a multi millionaire, multi, multimillionaire in their 20s, that was exceedingly lucky. But that doesn't mean you're going to keep it, by the way. So let me pack what real wealth is and how that differentiates from riches. Those are two things are different. No different than being a businessman or businesswoman is different from being an entrepreneur. It's different. Definitions matter. Hype tends to merge things together. Definitions and details matter. No different than the difference between being a hustler and a businessman or businesswoman is paperwork. Details matter. The difference is financial literacy. When you know better, you do better. So again, the title today is the Difference between Being Rich and Being Wealthy and When wealth really comes. I repeat that. The difference between being rich and being wealthy and when wealth really comes, being rich is a contract. It's temporary, conditional, often loud. It's performative. You perform on a contract, you do something contractually to deliver something of extreme value, typically within a short period of time. And it's typically loud. It is not. If somebody's making you rich through a contract, they want a compressed, intense value proposition. They're not asking you to own the stage. They want you to rock it. They want you to rock that stage and rock that mic. They're not asking you to own the mic. They want you to rock the mic. They own the mic. The wealthy owns the mic. Riches rocks the stage. This is not a criticism, by the way. It's an explanation. I didn't Realize or when I was growing up and I was nine years old, that when the liquor store owner asked me, he. He heard I was a good talker. And when the rich. When the liquor store owner, Mr. Mac Max Liquor Store in Copley, California, when I was nine years old, going on 10, and I was thinking I was doing research for starting my own business, and I went there to tell him he was selling the wrong kind of candy. After my financial literacy course in elementary school, I didn't know what the word partner meant back then. I didn't know what the word, the phrase joint venture meant. I'm not going to suggest I did, but I knew the intention was that I wanted to. I figured we were better together. He understood how to run a business. He had a business. He had a location. He had the ability to order products. I was a young person who knew what candy should be purchased. And I knew that my friends were going out of their way to come up to his store to buy candy they really didn't like or want. But he was the only game in town. And I knew if we worked together with my ability to sell, my ability to market, my ability to select the right product, that I had the right brain. The creativity, the intuition, the feel, the texture, the culture. He had the left brain, the analyst, the analytical, the structure, the business plan, the balance sheet, the location. I figured the left brain, right brain, working together, we would be better together. I was 9, 10 years old. So he just wrote me off, just dismissed me. But he said as he dismissed me, look, you're impressive, young man.
- [10:15]
State Farm / Commercial Voice
You.
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John Hope Bryant
You have good gift for gab. You talk very well. Let me give you a job after school selling candy at my candy counter. I said, I don't want a job selling candy in your candy counter. He said, no, that's the best job in all of this area in Compton. I'm gonna pay you top dollar. I don't want you job paying top dollar was. What do you want? I want to be a box boy. Excuse me? I want to be the person who's doing inventory in the coal box, pushing the inventory from the back to the front so people open the coal box and pull the liquor out or pull the milk out or whatever. He said, that's the worst job I've got in the whole story. That's the one I want. I didn't want to be performative. I didn't want to rock the mic, by the way, we need people rocking the mic. Be clear. We need people. I mean, this is music as an example, is the soul of the world. It's probably the original language. Sports is, is something that gives everybody joy. You know, it keeps you from going crazy. So when you're bouncing a basketball or hitting a baseball or running a football or rocking the mic, whatever that contract is that's making you rich, I'm all for it. Just understand what it is. And for me, that was not where I wanted to use my talent anyway. Some of you know my story. I went to go work as a box boy at very low wages. I opened the box, figured out there was an inventory list inside, figured out where he was buying his inventory, figured out the wholesale rate and the retail rate, the difference between what he's paying for and what he's sold it for. And the difference was profit. And I decided I wanted to be an owner. I wanted to write the check, not cash it. Employee cashing owner, writing more risk, more, more reward. But I also figured I knew my market. So I left there, quit there, went to go home, convince my mother to loan me a few bucks. She said, you're going to pay it back. Life is tough. Mother was the ultimate capitalist. Wanted Smith, gangster and a love bug. I then went to Smart and Final which is where the invoice said he bought his candy. Smart and Final and Iris food store, they were connected, owned by the same Jewish family who helped me out by the way, back then with this startup business idea. And I opened up a business in, in my neighborhood on the way to school and on a $40 investment, made $300 a week after several weeks and put the liquor of the candy business and became my dream. So I was on a road to success that would define my life and that's who I am today. So let me now I've seen riches. I've had contracts, right? And I've experienced wealth. Those are two different things. Let me, let me, let me explain the difference. Being rich is a contract, temporary, conditional, often loud, engaged, involved, short term, powerful. Think about an NBA contract, NFL contract, baseball contract. Think about, well, somebody wins the lottery. Yay. You know, it's a contract from the state, but it's temporary and it's compressed. If you're getting, if you're getting compensated, outsized to your labor in a short period of time and getting rich. It's typically temporary, conditional and loud. And I'm not judging loud in this example. Being wealthy is often quiet, built on ownership, patience and hear this compounding. You make money during the day. Thank you Tony Reser for this quote. You build wealth in your sleep. Tony Ressler is a billionaire businessman who owns the Atlanta Hawks, principal owner and is chairman of Areas Management, which is I think is about 5, $600 billion and is run by my friend Michael Araghetti. Those two together have built this along with others, this behemoth. So when you got the power, you don't need to use it. Real wealth doesn't need to scream, doesn't need to holler. It is what it is. Most people performing rich in their 20s are chasing a look, not building a life. And most people who become wealthy don't reach that point until their 50s. I did an entire podcast on becoming wealthy and when that happens, and that's mid to late 50s, go back and listen to that podcast. So I go deep on that topic. Everybody wants to be rich, but very few understand what it means to be wealthy, which is a contract. It ends when you stop showing up. Hello, I'll repeat that. Rich is a contract. It ends when you stop showing up. Wealth keeps paying you when you don't. I'm going to repeat that. Rich is a contract. It ends when you stop showing up. Wealth, real wealth, keeps paying you when you don't. Income gets you rich. Ownership makes you wealthy. Every billionaire that you've heard of in the music business, in professional sports, in the arts, Rihanna, LeBron James, I don't know if he's a billionaire yet, but Magic Johnson, certainly, certainly Mr. Nike, Air Jordan, Dr. Dre and his work with the technology company, all of these folks who have become billionaires did it from going from rocking the mic to effectively owning a piece of it. They've gone, they've gone into corporate, they got into business to do compounding. They've got a licensing deal or a co branding deal or they did something that leveraged them beyond their own talent. No one became a billionaire selling tickets to a concert. This is all a framework for a larger conversation that you can really relate to. I'm just walking you into this piece by piece of so again, income gets you rich. Ownership makes you wealthy. Only 7% of 30 year olds in America make $100,000 a year or more. 7%. Think about all the people running around on social media bragging and saying that $100,000 is nothing and they're rich and they've got the car that they're probably renting, they got the house they're probably renting, they've got for a photo shoot, they got money that's probably fake between the front bill and the back bill. Anybody who's got real wealth is not fronting like that, they don't need to. 76% approximately of all luxury goods, by the way, are purchased by poor and struggling and aspirational middle class people in the world. 76%. Just 1% of households under 30 or millionaires. 1% not black or white or Latino or Asian. All households. Okay. The average age of a US millionaire, 57 years old, by the way. Around my age. That's about when I was a little bit ahead of that. Well, I was millionaire technically well before that. But I got a liquidity moment, right. I did a nine figure deal when I was 56ish. 55, 56ish. I was rich for a good period of time. I had cash flow, I had lifestyle, but I didn't have the ability beyond lifestyle to move assets and do big things. I couldn't just wire right seven figures when I was rich. I can only do that when I was wealthy. Couldn't wire six figures, to be honest, unless it was on credit. Which means it's not your money.
- [18:44]
Coca Cola / Commercial Voice
What a matchup we got, y'. All. This is that classic HBCU vibe. Non stop action with the band is rocking and the crowd lit chant echoing drum beat Everybody showing that school pride. A game like this, yeah, it calls for an ice cold Coca Cola. Ah, Crisp and refreshing. That's a game changer right there. Yeah, that taste always hits the right note. Just like the band at halftime. And just like that, we're back at it. Passionate fans, school colors everywhere and an ice cold Coca Cola. That's a winning combo. No matter the sport, no matter the yard. Everybody knows fan work is thirsty work. So grab a Coca Cola and keep that HBCU pride going.
- [19:31]
State Farm / Commercial Voice
You've been working in the garage with your dad every week, Monday to Sunday, trying to get the old school up and running. Today, after all the hard work, y' all finally finished it it so you have that feeling of accomplishment. You did it. Then your dad throws you the keys. He says those three magic words, all yours, son. Yep. Same car that belonged to your grandpa and that your dad helped him fix. It's yours. Three generations right there keeping the tradition alive. But if you ask dad to really keep the tradition going, you need to get insurance. And you already know you need to get State Farm. Because your agent, well, he gets tradition too. His dad was an agent, his grandpa too. So he gets you generation to generation. Remember to choose the agents that your family counted on. Like a good neighbor, State Farm is there.
- [20:25]
Annabe / Commercial Voice
Tired of spills and stains on your sofa? Wash away your worries with Annabe Annabe is the only machine washable sofa inside and out where designer quality meets budget friendly prices. That's right, sofas start at just $699. Enjoy a no risk experience with pet friendly stain resistant and changeable slipcovers made with performance fabric. Experience cloud like comfort with high resilience foam that's hypoallergenic and never needs fluffing. The sturdy steel frame ensures longevity and the modular pieces can be rearranged anytime. Shop washablesofas.com for early Black Friday savings up to 60% off site wide backed by a 30 day satisfaction guarantee. If you're not absolutely in love, send it back for a full refund. No return, shipping or restocking fees. Every penny back. Upgrade now@washablesofas.com Offers are subject to change and certain restrictions may apply.
- [21:26]
Coca Cola / Commercial Voice
The world is buzzing with AI tools, but instead of making things easier, they've made things overwhelming. There's a better way. Meet Superhuman, the AI productivity suite that gives you superpowers so you can outsmart the word chaos with Grammarly mail and coda. Working together, you get proactive help across your workflow. No matter how you work, experience AI that meets you right where you are. Learn more@superhuman.com podcast that's superhuman.com podcast and Doug here we have the Limu Emu in its natural habitat helping people customize their car insurance and save hundreds with Liberty Mutual. Fascinating. It's accompanied by his natural ally, Doug.
- [22:13]
John Hope Bryant
Uh, limu is that guy with the binoculars watching us.
- [22:16]
Coca Cola / Commercial Voice
Cut the camera. They see us. Only pay for what you need@libertymutual.com Liberty Liberty Liberty Savings very underwritten by Liberty Mutual Insurance Company affiliates excludes Massachusetts.
- [22:31]
John Hope Bryant
So it should be inspiring to people that you actually technically get become a millionaire in the third quartile of your life or if you live a very long life at the, you know, little over the 60% mark. Right? So you're not too late. We're going to unpack why wealth comes later and how you can start building it right now. Rich looks good on Instagram, but it's often smoke and mirrors. That's why the word personality comes from a Latin root word to Persona, which means you perform. Our personality is often the performance we put on for the world. Riches described in this podcast as high income, flash and lifestyle, but rarely backed by assets. Typically the assets are on people's ass. No pun intended. Rich depends on the next check, contract or client. Are you starting to get it? You start to understand what I'm saying? You're also often cashing somebody else's check, not writing your own. Including social media influencers who are cashing a check from social media companies that are paying them for clicks and views, which is why people are making content that is often a lie just to drag people to their site and hold them there for three minutes so they can get credit for that. So they're telling a lie, promoting a lie in order to live a lie. Only 8%, only 18% of Americans earn over a hundred thousand dollars. 18%. About 10% of black households, I believe. Households. That's out of my. Off my head. Black households earn $100,000 a year. See, they're individuals or households. It's still not. It's not a big number. But you'd see from the. You think from the social media stuff that it is everybody, and it is not. It's not. It's mostly not anybody. In fact, 70% of people in this country living paycheck to paycheck, half of those making $100,000 a year living from paycheck to paycheck. If you're doing that, a quarter of those making $250,000 a year are living from paycheck to paycheck. If you're living in New York City, where I am today, 100,000 feels like 37, $39,000. So even that is not rich, but it is bigger income than the majority of Americans. So we all need to calm down and stop lying about what we're doing. And I don't want you to feel bad that somehow you're not succeeding. It's just not true. In fact, you deserve a Nobel Peace Prize because you've been doing. If you're listening to this podcast, you're probably doing so much but so little for so long. You can almost do anything with nothing. And I commend you, you probably have too much month at the end of your money. A single mother deserves a Nobel Peace Prize. Raising children and doing all that while working, etc. Among people in their 20s, fewer than 10% earn $100,000 a year or more. On social media, over 90% of influencers make less than 100,000 annually, yet almost project a luxury lifestyle. I'm gonna repeat that. On social media, over 90% of influencers make less than $100,000 a year, and many of them earn 20 or $30,000. And a lot of what you're seeing are literally them renting a life for a day to promote to you as success for a lifetime. Social media is a lot of folks renting. The appearance of wealth they don't yet own. Pro athletes and entertainers who make millions early but lose it when the contract ends is an example of not giving the memo on financial literacy and confusing making a living with building a life again. Making a living doesn't matter whether you're making a living at $20,000 a year, $50,000 a year, $500,000 a year, $5 million every year. You can still, if your outflow exceeds your inflow, then your overhead will be your downfall. You can still lose it all. Being rich means you make money. Being wealthy means your money makes money. Did you get that one? When you're wealthy, your money makes more money on money than money can ever make on labor. Hello, drop the mic. Wealth is ownership is what happens when you stop working and your money doesn't. This is making smart sexy, by the way. We've been making dumb sexy for way too long. We've dumbed down and celebrated it. It's time to make smart sexy again. Here are the three core wealth building vehicles. Please write these down because these are not what I think you've been told. Number one, real estate. It involves appreciation of value in the asset. They're not growing any more land plus rental income if it's an income producing property. But the number one way you do wealth in America is homeownership. Just know that that's why 75% of my white counterparts own a home. And unfortunately 44% of my black brothers and sisters own a home. And that 30% gaps, call it a delta. The difference is generational wealth or the lack thereof. Number two, business ownership is the second way people build wealth. Equity, not just income. I've already talked a little bit about that. You make money during the day, you build wealth in your sleep. It's not making a living. Business is that real big step outside of the corporate or structured job environment. Using a traditional existing business model, I break down the difference between being a business person and an entrepreneur and a hustler and self employed. I break down all these things. The steps of capitalism in another podcast episode. Go back and watch and listen to that. Number three, way to build wealth in America or anyplace else in the world. By the way, investments that compound over time and no, cryptocurrency is not part of a basic investment portfolio. Cryptocurrency, which you can strike it rich with, is speculation. You can also get rich going to Las Vegas. You can win the lottery, by the way. You can also lose it all. And that is until they regulate crypto and all that stuff, give structure around it, and hopefully it happens soon. You can make it all, you can lose it all. There's no asset base under cryptocurrency. Okay? The, frankly, even bitcoin, it's hype and promotion and everybody sort of popping. You know, it is sort of bidding the price up. And theoretically there's a finite, finite number of bitcoins. So that actually because of the finite, finite amount of bitcoin, that creates scarcity. So supply and demand. So there's some legitimacy there. But blockchain technology, need, that is the real magic. But thousands of cryptocurrencies have gone poof. People lost every dime they have. So I tell people, you want to do cryptocurrency, that's great. Just don't use your rent money. So you should have a, should have a living budget, an investment budget, and a flossing budget. If you're in your investment budget, you want to take 10% and do speculative, speculative investments. And you want to do cryptocurrency and that, fantastic. Knock yourself out. But the traditional investment should be things that you use every day and are not going to go out of vogue. And if the company even goes bankrupt, their assets underneath it, like stocks, not, sorry, like real estate and client list and brand and, you know, cash flows and things like that. So real, traditional, boring investments, okay? So three ways that you build wealth. Primary ways, real estate, business ownership, traditional investments. You can't be wealthy until your money works harder than you do. You can't be wealthy unless your money works harder than you do. I just said that twice because I like the way it sounded. It was real cool. I just love truths like that are so simple. It's like, boom, right? Then you're so smart, that's going to just literally light all the endorphins up in your head. The median net worth by age 30 to 34, let's just break all this stuff down, is about $88,000, okay? These are people who are working and doing things by 50 to 54. The median, the median client, median net worth. These are, by the way, Caucasian. These are the best numbers you've got, right? So these are not minority wealth creation. These are like, you know, the median for the country. But, but really reality. I'm talking about the sort of the best example of each of these categories. 30 to 34, $88,000, 50 to 54 years of age, climbs at $266,000. By the way, blacks are typically 10% of that number Latinos not much. Far ahead of blacks by 60 years. Plus, many households cross into millionaire territory if they have a discipline of investing. If you take $200 a month at age 25 and invest it in the top rated stocks and just leave it there and let it compound, you'll be worth a million dollars by the age of retirement. Do nothing else. Just do that. Let's talk about patience. The compounding curve takes 20 to 30 years to bend upward. That's what I just told you. $200 a month. Wealth is not a spirit. It's compound interest with good behavior. Right? It's time to make smart sexy again. We make it dumb sexy for way too long. We've dumbed down and celebrated it. It's time to make my quote, my friend Bishop TD Jakes boring sexy again. I want us to get the basics right. I'm not telling you not to do this or that right against crypto. I want you to get the basics right. Right? I want you to have a life insurance policy and a will and a home and income. Got to get an amen. I just want you to get the basics right and then you can do whatever you like. This is why wealth normally comes in your 50s. It requires patience and maturity and consistency to turn income into independence. Wealth is what patience looks like on a spreadsheet. Drop the mic. Wealth is what patience looks like on a spreadsheet. Here's hard data. 18 to 29 years of age, 1% of households are millionaires. So so much with this live that all these folks run around here with fancy cars and fancy bags and fancy lifestyles. And millionaires, they're probably just renting. All this on high interest credit cards. 30 to 39 year olds, 5% are millionaires. 40 to 49 years of age, 15% of millionaires. This includes, by the way, their primary home, 50 to 59 years of age. 25% of everybody are millionaires. But again, as I said earlier, this tends to skew toward to mainstream American numbers. Those are certainly not the numbers in black America. Not even close. The average US millionaire gets there at age 57. It's compounding time, debt payoffs, kids that grow up, not on your debt anymore, on your dime anymore and wiser spending. The millionaire next door lives modestly, invests quietly, owns assets that cash flow. In your 20s you learn. In your 30s you earn. In your 40s you build. In your 50s you harvest. Hello. Let's shift now from chasing rich to building wealth. I want you to, number one, live below your means margin. Equals freedom margin equals freedom live below your means. I'd rather underestimate and overperform than overestimate and underperform. Number two, own something that grows. Property, a business, an index fund, a stock index fund. Number three, automate wealth, automate savings, automate investing. Rinse and repeat. Set it and forget about it. Go on to something else. Do not do day trading. Do that stuff. Gone about your life. Set it and let it compound. Don't mess with it. I put the money in a an account and the market timing was horrible. Lost money and pulled some money out. I tell people, don't make investment decisions emotionally. And this was one where I admittedly did it emotionally because this was money I did not want to lose. It was some safety net money. I did this, I covered this in another podcast. When I talk about my own mistakes, you go back and watch that. And I put this money in this account. It dropped in value. I took the money out of the account, or, sorry, I took myself out of the market, the stock market. And later on, I asked my asset manager for investments, what would have happened if I left it here. He said, oh, you'd have lost more money. And I said, well, what would have happened now? He said, well, you would have made the money you lost back and doubled it. So if I just stay with a good investment and let it grow, it would have recovered the losses and doubled the return on top of the recovered, recovered losses. I'm cool with it because I was not trying to grow that investment. I was trying to preserve capital. But it's just a lesson about the power of markets.
- [37:00]
Coca Cola / Commercial Voice
What a matchup we got, y'.
- [37:02]
State Farm / Commercial Voice
All.
- [37:02]
Coca Cola / Commercial Voice
This is that classic HBCU vibe. Non stop action. The bed is rocking and the crowd lit. Chance, echo, drum beat. Everybody showing that school pride. Game like this. Yeah, it calls for an ice cold Coca Cola. Ah, crisp and refreshing. That's a game changer right there. Yeah, that taste always hits the right note. Just like the band at halftime. And just like that, we're back at it. Passionate fans, school colors everywhere, and an ice cold Coca Cola. That's a winning combo no matter the sport, no matter the yard. Everybody knows fan work is thirsty work. So grab a Coca Cola and keep that HBCU pride going.
- [37:47]
State Farm / Commercial Voice
You've been working in the garage, which is your dad, every week, Monday to Sunday, trying to get the old school up and running. Today, after all the hard work, y' all finally finished it. So you have that feeling of accomplishment. You did it. Then your dad throws you the keys. He says, those three magic words. All yours, son. Yep. Same car that belonged to your grandpa and that your dad helped him fix. It's yours. Three generations right there keeping the tradition alive. But if you ask dad to really keep the tradition going, you need to get insurance. And you already know you need to get State Farm because your agent, well, he gets tradition too. His dad was an agent, his grandpa too. So he gets you generation to generation. Remember to choose the agents that your family counted on. Like a good neighbor, State Farm is there.
- [38:41]
Annabe / Commercial Voice
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- [39:42]
Coca Cola / Commercial Voice
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- [41:01]
John Hope Bryant
Limu is that Guy with the binoculars.
- [41:02]
Coca Cola / Commercial Voice
Watching us cut the camera. They see us. Only pay for what you need@liberty mutual.com Liberty Liberty Liberty Liberty Savings Very underwritten by Liberty Mutual Insurance Co. Affiliates excludes Massachusetts.
- [41:18]
John Hope Bryant
Number four. Guard your credit score with your life. It's your economic passport. It's as important as a four year education in my opinion. Number five, create multiple streams of income. At least one passive level of income. You can do that through annuity payments. You can do that through stocks that provided PI did pay a dividend is another way you can do that. 6. Avoid performance pressure. Stop competing with illusions. Do one thing this month that earns you money while you're sleep. Just do one thing. Just buy some stock even if it's small. You got to do even got to do fractional shares. Just do something that that makes some take some action this month. 20 bucks. $200 $2,000 $200,000. I don't care what you do, just start. Because it changes once you make that decision. It changes your mindset. It changes the endorphins in your brain. You start shifting the way you see things that because what you see depends on where you sit and whether you believe you can or whether you believe you can't. You're absolutely right. Rich ends when the check stops. Wealth begins when you stop working. Only 7% of 30 year olds make six figures. But nearly 25% of people in their 50s are millionaires. Because time, not talk, builds wealth. Don't fake it until in your 20s. Build it. So by your 80s, sorry, by your 50s, sorry, you're free. By your 80s you're sitting on a yacht somewhere completely chilling, trying to hide from your kids probably and babysit your grandchildren. Your kids probably want alone. But. But you by your 50s you can be literally chilling if you set yourself up the right way. And by the way, I feel better now than I did in my 20s. I think I'm in better shape. In other words, don't be present in where you are 100% but know the future is fantastic when you get there. If you set your life up the right way. Something is like wine. Do get better with time. That's been my experience. Commit to long term wealth habits and financial literacy. Financial literacy is the civil rights issue of this generation. When you know better, you do better in my opinion. I want you to go to Operation Hope and turn financial literacy into a habit by getting a financial coach. So everybody has the tools to go from rich to wealthy. I created Operation Hope. I founded it after the Rodney king riots. Of 1992. And we raise money every year so that you can get a thousand to a $5,000 annual HOPE program scholarship so that the coaching and counseling, the private banker we assign you with that gets your credit score up, your debt down, and your savings up. That doesn't cost you a dime. It costs you your time. I want you to invest your time. Now, let me break some myths here. As I close. 70% of those who win the lottery, bankrupt in 5 years, no free lunch. About 70% of NFL players bankrupt in 5 years, no free Lunch. About 65 to 70% of NBA players bankrupt in 5 years after retirement, no free lunch. If you're. If the lunch is free, it's probably stale. And in all these instances of the professional athletes, within five years they have a divorce because the women might have just been there or the men for the money, for the lifestyle, for the floss. And when the lights go down, people leave the performance and go to another party. And now you're just stuck with the bills. Here's another thing about. I really need you to understand about riches. So you become rich. You've now engaged in this lifestyle, okay? You got three cars, you've got two houses. You're taking care of your mother, your sister, your cousin, Pookie, them. You got a whole posse of people, you're taking care of you. You got money flowing coming in. It was. It was 5,000amonth, and it was 10,000amonth. It was 20,000amonth. Then you, you know, it's 50,000amonth. It was a hundred thousand a month. You thought, this is never going to end. $200,000 a month. You're my God. I'm making two and a half, $3 million a year. I am rich. But you're not wealthy. What do I mean by that? Because when that contract ends, when that performance ends, when, when you stop being a superstar and the taste of the public changes, or you're, you get injured and that contract ends or it's broken. You know, in the NFL, great contracts, by the way, great healthcare, great franchise system, but in. You can have a $50 million contract, but when, if you break your leg, they can. What you get is a signing bonus and what they paid you up to that point, you'll get the rest of the money unless you negotiate it. That's financial literacy, by the way. So that means that now the money has stopped. Cash flow. Cash flow. Making a living. See, people, if you pay attention, it's right there in front of you. Making a living through cash flow. Income contract riches. Once you, you, your cash flow ends and the bills continue and you've got a monthly outflow of $20,000 a month based on $30,000 of income. And you've been living basically in accordance with your lifestyle level and your income level. Where your outflow exceeds your inflow, your overhead will be your downcome, your outcome. If your outflow exceeds your inflow, then your overhead will be your downfall. If you're making $100,000 a month and you're spending 80,000amonth and you never pay taxes, so that's a whole nother problem. But then this check stop by 2, 3, 4 months of you making of you having $80,000 a month of outflow, you're broke. Making 100 bucks a month with $80 outflow, you're broke. Making a hundred thousand dollars a month with an $80,000 outflow, you're just more broke, you're more painfully broke. You make a million dollars a month, a million dollars a year. But if you're spending $700,000, $800,000, $900,000 a year, sometimes more with credit cards and the income stops because it rich was a contract. How long does it take for the all the bill and the lifestyle to drain every dime you have? And then where are your so called friends? Hello, can I get an amen? Is this ringing true? Rich people make money, wealthy people make systems. I am a plumber. I'm an economic plumber for the underserved. I'm trying to help you create a system for your life. If your money stops when you, when you stop, you're not wealthy yet. Only 1% of people under 30 are millionaires. That's the, that's the best number we have for, for everybody, including mostly mainstream families. Wealth is a long game. Wealth is what patient looks like on a spreadsheet. Wealth is what patience looks like on a spreadsheet. I'm saying it another time just so you drill it into your head. The real flex is in luxury. It's freedom. And all money is is freedom. It just might be the only freedom. My friend who's the CEO of KeyBank, Chris Gorman told me this. One of our partners at opera show. It's entirely possible the only true freedom is financial freedom because every other freedom can be taken away from you. Think about that. Political freedom, religious freedom, societal freedom is going to be taken away from you. But unless you screw it up, the financial freedom you've earned allows you to be free for life. So I hope I've unpacked this sufficiently to give you a foundation of this core principle that rich is a contract. It's flashy, it's loud, it's temporary. You gotta find a way to take that moment and make it magic and turn it into a memory that lasts a lifetime called compounding interest. You got to find a way to take that contract and turn it into true wealth creation. That means living under your means and investing in things that make money when you sleep. Warren Buffett, the famed investor, he's famous for saying that his secretary pays more in taxes than he does. I've done a whole thing on taxes. Go back and watch that or listen to that podcast. Well, he's right because his secretary is a W2 employee. Employee of his and W2 employees pay the highest rate, natural rate on taxes. Warren Buffett does not, take my guess, is a salary. So why would he pay taxes? He does not earn W2 salary income. He does not earn income tied to riches. He earns his income. The ability to live based on passive income from his investments, maybe even loans against his investments is a whole nother thing I cover in another podcast. But when he sells an investment every few years, he pays the smallest tax rate, which is a capital gains tax of about 20% in comparison to 30, 40, 50% of folks who have W2 or 1099 income. You want to write the check, you want to cash it. I suggest you use cashing a check as a vehicle to get into a point where you can write some or better yet, somebody's writing you some based on non labor. Again, money makes more money on money than money could ever make on labor. All right, let me know what you think about this podcast. Let me know what else you want me to cover. I want to thank you for continuing to make this podcast high, performing here and around the world on entrepreneurship and business. Tell all your friends to follow Money and Wealth to go to Operation Hope for coaching and counseling to get the book Financial Literacy for all. And let's turn this into the civil rights movement. From civil rights to civil rights, from the streets to the suites. John o' Brien I'm out. Money and wealth with John o' Brien is a production of the Black Effect Podcast Network. For more podcasts from the Black Effect Podcast network, visit the iHeartRadio app, Apple Podcasts or wherever you listen to your favorite shows.
- [53:39]
Coca Cola / Commercial Voice
What a matchup we got, y'.
- [53:40]
John Hope Bryant
All.
- [53:40]
Coca Cola / Commercial Voice
This is that classic HBCU vibe. Non stop action. The band is rocking and the craft lit chance echo drum beat everybody showing that school pride game like this. Yeah, it calls for an ice cold Coca Cola. Ah, crisp and refreshing. That's a game changer right there.
- [54:00]
John Hope Bryant
Mmm.
- [54:01]
Coca Cola / Commercial Voice
Yeah, that taste always hits the right note. Just like the band at halftime. And just like that, we're back at it. Passionate fans, school colors everywhere, and an ice cold Coca Cola. That's a winning combo no matter the sport, no matter the yard. Everybody knows fan work is thirsty work. So grab a Coca Cola and keep that HBCU pride going.
- [54:25]
State Farm / Commercial Voice
This weekend, one of the homies mentioned he closed on a new crib. While everyone's asking about a housewarming, you're asking the real questions. Like who is his State Farm agent? See, homeownership is one thing, but the right coverage is the real game changer is how you protect your legacy. A State Farm agent can help you with finding the right coverage for your new place and even help you file a claim over the phone, in person, online, or on the app. They're ready to help you and they don't drop the ball. You know what I mean? Like a good neighbor, State Farm is there.
- [54:57]
Coca Cola / Commercial Voice
This podcast is brought to you by FedEx. The new power move. Hey, you know those people in your office who are always pulling old school corporate power moves? Like the guy who weaponizes eye contact. He's confident, he's engaged, he's often creepy. It's an old school power move. But this alpha dog laser gaze won't keep your supply chain moving across borders. The real power move? Having a smart platform that keeps up with the changing trade landscape. That's why smart businesses partner with FedEx and use the power of digital intelligence to navigate around supply chain issues before they happen. Set your sights on something that will actually improve your business. FedEx. The new power move.
- [55:44]
Annabe / Commercial Voice
The weather outside is frightful. The fire is so delightful. And you're living your best holiday life in Old Navy Jingle Jammies. Because honestly, it's not the season without them. They're instant spirit wrapped in flannel. Get the whole family in matching sets for the photo, the cocoa and the big morning. Old Navy has the classics like plaid and plenty of fun new options too, including exclusive Disney prints. Think Mickey and friends, Stitch and Angel. Even Star wars jammies. Find Jingle Jammies and all your festive favorites now@oldnavy.com.
- [56:17]
John Hope Bryant
This is Matt Rogers and Bowen Yang from Las Culturistas with Matt Rogers and.
- [56:20]
Coca Cola / Commercial Voice
Bowen Yang, JBL Tour Pro 3 earbuds are for those who don't conform to the standard.
- [56:25]
John Hope Bryant
Yeah, I mean, if you want to get into some touchscreen technology. How about the smart charging case? Clear sound? These are not standard things. You' going to get them with the JBL Tour Pro 3 baby.
- [56:37]
Coca Cola / Commercial Voice
And I love the sound of JBL when it goes. These earbuds are packed with innovation because.
- [56:43]
John Hope Bryant
You can't stand out by following others. Touchscreen Smart charging case for one touch control, instant EQ customization, true adaptive noise canceling and the one of a kind audio transmitter which can plug and play with everything from game consoles to in flight entertainment. What more could you want first doesn't follow. Grab a pair@jbl.com this is an iHeart podcast.