← Tom Bilyeu's Impact Theory
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A
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C
Why financial education is so important is because if you don't understand this, you are going to get screwed over by the system. Because now guess what? Your gas is going to be more expensive. Your groceries are going to be more expensive, your home cost is going to be more expensive. The cost to do anything is going to cost you so much more today, next year, the year after that. Well, your salary, hey, you got a raise, but you're actually broker now than you were before the raise because your raise isn't keeping up with inflation.
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D
Jaspreet over the next hour. Ish. You and I are going to snatch people from the jaws of poverty. You in?
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C
Let's do it, man.
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D
All right, so I have a sincere belief that there are habits that keep people poor and that anybody, regardless of where they're born, what their circumstances, if they do the right things over a long enough time period, they can get out of it. We are living in horrendously uncertain times.
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C
Yeah.
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D
What are the things, the habits that keep people poor?
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C
Wow. Well, the first one really has to do with understanding money. Because unless you understand what money is, none of the other habits really matter. Because at its core, what is money? And when you ask people that, you might say it was a hundred dollar bill, fifty bill. That's what money is. But what is that money? Because that money that we have today is different than what money was 60 years ago. The money that we call money today is currency. It's really just pieces of paper and when you understand that, it's going to change what you do with the money. And the reason why I'm saying that is because I'm from my family's India, state of India called Punjab. And over there, it's a very traditional thing that when you earn this paper dollars, many people will convert this cash into gold because they understand that these paper dollars lose value. And it's just paper. So they want to convert it to something real, something tangible, so they will go out and buy gold with it.
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D
All right, really fast. Explain to people why paper money loses value over time.
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C
So our paper dollars can be manipulated and controlled by other entities.
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D
Such as?
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C
Such as the Federal Reserve bank and the government. Now, the interesting thing about the Federal Reserve bank is it's called the Federal Reserve Bank. However, it's not federal. It says so on their website. They're not a reserve. They don't keep cash reserves anywhere. They're not a bank. You and I can't go there to deposit money. So what happens is, should I hear
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D
wolves howling in the background? Like, is there something sinister going on, do you think for real or is it just the system and it's just how it works?
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C
Well, it depends. If you understand the system, you can use it to your advantage. If you don't understand the system, it is going to screw you over many, many, many times.
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D
Yeah, this is my obsession. So as you and I were talking about before we started rolling camera two years ago, I considered myself very good at making money, very bad at investing. And then the pandemic hit and I really started to panic for other people that, look, I'm going to make it out of the pandemic fine, but I don't know that that will be true for people that don't understand money, right? And so getting educated, like for me to try to help other people, I've had to educate myself about what money is, right? Getting freaked out by inflation. And I've heard you talk about this, so I know you know this well, but that the government, when you say manipulate the money, they literally just make
- [04:04]
C
money more of it, right?
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D
Magically, literally.
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C
And. And this is where the rich will become richer, the poor will become poorer, and the middle class will get wiped out. And the reason why is because some people, rich people, will understand money and they will continue teaching their kids and everybody else, the majority of people who have no idea what's happening will continue to become poorer because they don't even see it happening. And so what happens is, so you have the government and the Fed, the government spends money. Now where do they get their money? Well, they get their money from taxpayers, people like you, me, people watching this video through tax dollars.
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D
Now can we hammer that for a second?
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C
Sure.
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D
The government does not make money. The government takes money from people who are making money right now. That's not necessarily bad because they provide a lot of amazing things, but they're not necessarily efficient with their dollars.
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C
So yeah, so we can dive into that for a second. So, you know, you have to understand what someone's role is. If you are a company, right, you have a company, your job is to make a profit. Because if you don't have a profit, you're not going to be in business unless you have some other stream of, you know, venture capital debt or something. But if you don't have a profit, you can't continue operating. And so your job is to be as efficient as possible as a company. The government can actually be benefited by being inefficient. Because what is the government's job? You have to understand what is their role? If their goal is to create jobs, well, then you can be as inefficient as you want and you can achieve that goal. Because if my goal, if I'm the government, I just want to create as many jobs as possible. I can pay people to pick up this mug and put it from the left hand to right hand. I just created a job. You're employed, you have an income, but you're not producing anything of value. And this is where you have to understand, okay, what is that purpose? And so now, you know, if we get away from the politics for a second, the government now spends money, they get money from taxpayers. Because the government is not a for profit entity. They don't create a product and sell it for, or create something and sell it for a profit. Instead, people make money and then the government taxes your income. Now, just like anybody else, there's checks and balances. If the government has a million dollars, they can only spend a million dollars, you would think, but that's not how it works. So the government has a million dollars and what's happening now is they're going to spend significantly more than a million dollars. Now, if you have a certain amount of income and you spend more than that, what do you do? Well, you're going to have to subsidize or find that extra cash somewhere. And in the government's case, what they can do is they can go out and look for a loan, it's called a treasury bond, for as long as Anyone can remember have been considered the safest investment anybody can make. Well, what it is, is you're literally loaning money to the government. But what happens now if there's not enough people out there to loan money to the government, if the government wants trillions and trillions of dollars, if there's not enough people out there to loan that money to the government, and they keep wanting to spend more money, you still gotta make up this cost. So what do they do? They call up their friends at the Federal Reserve bank and they say, hey, we need a $2 trillion loan. And then the Fed's gonna say, okay, we got you now. Remember what I said. They're not a reserve. They don't have a cash pile anywhere. So what do they do? They go to the money printer. Boop, boop, boop. And now they can print out $2 trillion. They loan this cash to the government, and now the government got the $2 trillion. The Federal Reserve printed it out of nothing. The government can now take this 2 trillion do dollars and spend it in whatever way that they want. It can be inefficient. They can try to create efficient products, but their goal is to hopefully help people. Now, whether they're inefficient or not is a political debate. However, you know that that is what
- [07:38]
D
they do now really fast, before we move on. So this is the part that people need to understand about why the rich get richer. Because I'm super, as a rich guy, I'm like, oh, I'm going to get richer. Like, what? Great.
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C
So what happens?
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D
I never understood how.
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C
So now what happens? You just printed this money, right? And then.
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D
Which you don't actually print, by the way. You just increase the database somewhere.
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C
It's a bunch of digits.
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D
Yep.
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C
And now this money enters our economic circulation. But what happens now when more dollars enter without actual wealth being created? Because we saw this happen in textbook form of 2020 and 2021, where nothing was being produced except money. Well, when more money gets produced, it effectively reduces the value of each individual dollar. This is what inflation is. The word inflation comes from the word inflate. What are you inflating the monetary supply. So you're increasing the monetary supply, causing the value of each individual dollar to go down, which effectively causes the price of things to go up. And so in 2020, 2021, no one's producing. However, the government is spending money like crazy. Where are they getting this money? The Fed. So. So the Fed's printing money, giving it to the government. The government's Spending it like crazy. Now people are getting money. It's people, it's businesses, it's corporations. And this money is being spent. And now everybody is like, wow, I'm sitting at home and I'm rich. You have some people who are getting big unemployment checks. You have some businesses getting millions of dollars and everything is running smooth. But. And people are spending money like crazy buying things, but nothing is being produced. So then what happens? Well, now you have a supply chain mess because everyone's buying all the stuff in stores. And however, no business is able to produce anything because the economy shut down. So the supply chain issue, then you start to see, is a byproduct of the inflation because everyone's trying to blame, oh, the inflation is happening because of supply chain issues. But you have to look at what is the real root cause. The inflation is what causes the supply chain issues. And now we're trying to go backwards. But this is where rich get rich and the poor get poorer. Because as the value of the dollars drop, what happens for regular people? Your salary doesn't stretch as far, your savings don't buy you as much, and so you're effectively becoming poorer each and every day. Because for most of us, we're taught to save our money. That's what I was told to do growing up. You know that traditional Indian house is save, save, save. And so I was told to save my money. And your savings are becoming less valuable each and every day. While what wealthy people do is they're not storing cash, they're buying assets. And so when, when we have this sort of economic system, can you explain
- [10:12]
D
what an asset is? And this, we're now getting to the root of how the rich actually get rich.
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C
Right.
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D
This was the part it took me a very long time to understand, but now that I get it, one, it doesn't need to be the rich that are getting richer. Anybody can own assets.
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C
Yeah.
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D
But they have to understand what assets are and then actually buy said assets.
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C
Right.
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D
Because this is how the government pumps the money into the system. And this was the part, like, I'm grateful sometimes that I'm kind of dumb for real. And this really. I had a breakthrough moment back at Quest. We were dealing with nutritional science, and I didn't always understand it, and so I would have to keep asking, keep asking, keep asking, keep asking. But what I found was if I just totally got rid of my embarrassment over not knowing, and I kept asking until I understood it so well that I could explain it to other people, that ended up propelling me Forward, because I was no longer just nodding and smiling and going along. I was like, no, no, I don't get that. I don't understand. I don't understand. Yeah. And so by pushing into that, then I actually began to understand the biology. I began to understand what ingredients made sense and all that. So. But I had to be willing to look stupid.
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C
Yeah.
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D
And so now, because I've been willing to look stupid for so long in the world of finance, I finally asked the magic question, which is when people, because I actually thought they were printing money, I thought that a hundred dollar bills were coming off of a printing machine. That's not how it's done, at least not to the vast majority of it. It's zeros and ones in a database. And when they create that money, I was like, whose database entry is it? Like, are they actually going into rich people's, like, accounts and giving them money? No, what they do is they buy, oftentimes government assets. I don't want to introduce the word bonds and stuff.
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C
Sure.
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D
But, like, they're buying assets from the government.
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C
Right.
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D
But the question is, where did those assets get purchased in the first place? And they got purchased by people who are effectively trying to park their money, as they call it.
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C
Yeah.
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D
So I, for years, was parking my money in government bonds because the government guarantees it.
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C
Yeah.
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D
And so the way that the government raises money without having to raise your tax is they put bonds out into the world that then people buy. So when they're pumping money into the system, they just go buy those bonds. So now they're buying them from rich people because rich people were the ones that were educated enough and had the capital to buy said bonds.
- [12:25]
C
That's correct. And it goes actually a little bit deeper because in the pandemic, we saw something that we've never seen happen before. So the Fed has the ability to work with interest rates. I'll talk about that in just a second. And then they can print money and give it to the government. And then when you have an emergency time. We saw this happen in 2008. We saw it happen in 2020. They can do weird things. So what they did in 2020, this is the first time it's ever happened in history, is they directly gave money to corporations in the form of purchasing corporate bond ETFs. So think of it this way. The biggest corporations in America can go out and raise money from a bank. They can go out and raise investment dollars, or they can put out this loan. Say, if you are a regular person, you want to Loan money to us. You can do that. And so there's ETFs, which is a group of corporations that are looking to raise money. And it's a way to kind of track those debt investments. Well, in 2020, because a lot of corporations had no cash, and now all of a sudden they're like, oh, we can't sell products, we're going to go under. The Fed did something that has never been done and they started buying corporate bond ETFs in the first time in history. And this is where things got really dicey because now how do you decide who gets that money or not? I mean, they're printing money. Somebody's got to pay for that. Who's paying for it? Regular people, Average people. Because now it's a hidden tax. Because the government can't just spend money without somebody paying for it. They have to generate the tax dollars. If they don't pay it through tax dollars, somebody's still going to have to pay a tax. And inflation now is a hidden tax. It's a silent tax. It affects the people who don't understand money, and it disproportionately affects the poor and the financially uneducated. And this is why financial education is so important, is because if you don't understand this, you are going to get screwed over by the system. Because now, guess what, your gas is going to be more expensive, your groceries are going to be more expensive, your home cost is going to be more expensive. The cost to do anything is going to cost you so much more today, next year, the year after that, well, your salary, hey, you got a raise, but you're actually broker now than you were before the raise because your raise isn't keeping up with inflation. And so what's happening now? This money gets printed and it enters our economic circulation. And now you can own the assets, or what happens is, let's say you own stocks, you own real estate. Well, the Fed can also manipulate interest rates. So when interest rates go down, it makes borrowing money cheaper. Well, when you make borrowing money cheaper, more people and institutions are going to go out and borrow money. This also creates more inflation because now when you go to the bank and you borrow a million dollars or a hundred thousand dollars, the bank is going to work with the Fed to print this money. And that's how it gets injected into the economy. So lower interest rates create more inflation. And if you are somebody who's financially educated, you own assets. And we didn't explicitly answer what is an asset? It is something that gives you equity and at the broadest form, an asset is something that puts money in your pocket. Liability is something that takes money away from pocket.
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C
What's an example of an asset? This could be owning a business, investing in stocks, investing in real estate, anything that you buy for the purpose of making money, right? And so when interest rates go down, because now the Fed, working with the government, want to create more inflation, more dollars are going to enter economic circulation. More people are going to want to buy a home. Well, if you have more demand to buy a home, where do home prices go up? Who owns homes? Well, yeah, if you're a homeowner, but if you are a real estate investor now the value of your assets have just. Because now you own multiple real estate investments, your rents have gone up, your stock investments have gone up, because now businesses can borrow money for effectively nothing. You borrow money for 3, 4, 5%, and now you can borrow hundreds of millions of dollars to grow the company. And if you can grow your company by 6%, well, you just made a profit off of the free debt. And so now corporations become wealthier because of asset prices go up. And what does this do? The reason why it makes rich people richer and poor people poorer is because not only is your cost of living higher, but now if you want to go and invest your money, well, asset prices are more difficult to attain. It's harder to buy the same level of stocks, it's harder to buy the same level of real estate because now the people who own these have already seen that appreciation. And now if you're wealthy and you understand this and you're buying these assets and you've been buying them, now you're seeing the real gains and you start to see this divide between the rich and the poor. And this is where inflation disproportionately hurts the financially uneducated and the poor and disproportionately benefits the wealthy. And that's why the middle class gets wiped out. And the crazy thing is none of us are taught this. I didn't grow up learning about money. I didn't Grow up learning about financial education. I didn't grow up learning about investing. I didn't grow up learning about any sort of wealth. My parents are immigrants from a state in India called Punjab. Like I was saying before, and in my household, success meant go to school, get good grades, get a good job. And for me, that good job was I had to become a doctor. I was actually given two options. Become a doctor, become a failure. I could choose.
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D
They let you choose.
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C
They let me choose, right? And so I saw how hard they worked for my dad. If he had a Saturday and a Sunday off, that was considered a long weekend. And so, you know, I wanted to give back to my parents. I knew I wanted to become successful. They wanted me to become successful. And so I kind of followed that path, like doing what everybody says, following the system, trusting the system. Right. And it just didn't make sense to me because on one hand, in my house, money was a taboo topic. You know, you don't talk about money. You don't worry about money. You don't. It's. It's a bad thing. But at the same time, I see how hard my parents are working to get paid, you know, to. To pay for our. Our lives now. We were fortunate. I never had to worry about my next meal. I never. We were never poor or anything like that.
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D
We.
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C
But I saw how hard they worked. And it wasn't until I got to college until I realized something isn't adding up because I was actually studying to become a doctor. I was taking the Medical College Admission Test, the mcat. And as I'm studying for this test, I start doing a couple things. First, I started reading business books because I was just interested by this. That was the first. English is my second language. So I never grew up reading books in, you know, my grade school years, even English class. I almost failed my English class. And I think it was middle school because I just didn't understand how to write papers or do all that. But as soon as I started reading business books, I started reading them for fun because I was interested by it. And then I started going on to Google and I started researching just random things from things like the richest people in America. And, you know, you see, like, Warren Buffett, Steve Jobs, Mark Zuckerberg. I don't even know he was on it back then, but you had a bunch of people who. None of them were doctors. None of them went down that traditional path. And I was like, wait. I thought that grades correlated linearly with income. Like, if I got better grades, my income would directly correlate with that. So that was like my first, like, wait, is something wrong here? Was. Was something like it just wasn't adding up. And that's when I started to dig a little bit deeper. And it's talked about wealthy people investing in real estate. Now, I had no idea what that meant because I didn't know any real estate investors. I don't even know what real investing was. I didn't grow up around investors. And it said, however, the wealthy people invest in real estate. And this was right after the 2008 crash. I didn't know what was normal in real estate. To me, this was all I knew because now this is the first time I'm looking at real estate prices. And I said, oh, I've been running this event planning company kind of as a side hustle because, you know, I wanted to become successful. However, my parents didn't want me to do anything except study because to them, if it's not related to biology or math, it's a distraction. Even, like, playing football was a distraction. Doing all these things that were not related to becoming a doctor is just a distraction. So I always had this entrepreneurial bug, but I always kind of did it in secret because it was never, like, allowed. So in high school, I worked at weddings and I got to meet a lot of the Indian DJs. And one of them, or a couple of them had this idea to host teen parties for kids in my high school. I was like, yeah, why not? We got to meet one of these little local Indian restaurant owners. And they were like, yeah, why don't you throw parties here for free? You can charge, cover, do whatever you want. We want the exposure. So I kind of did this in secret. Now I'm in high school hosting these little teen parties. Became this little event promoter. Didn't make that much money, but it was a little hobby that I started. And then I go to college. I'm 17. I don't know what college is like or supposed to be like in America. And I go there thinking everybody's going to be spending Friday nights in the chemistry lab, studying. I get there and everybody is partying, drinking. I'm like, none of you guys have any money. How do you afford all these, like this. This lifestyle? And I was like, I need something to do on Friday nights. So that's when I brought this event planning company to college. Again, in secret. My parents didn't know I was doing this, and I'm 17 and I was like, well, let's try this. So I started knocking on the doors of clubs, venues, bars, restaurants, trying to find a place that will let me do it that's not going to charge me a lot of money or really any money, because have the. The money to put a deposit down for a fancy venue. And I found a venue that was like, yeah, you can do it here. We're not going to charge you a penny. Just give us half of your cover charge. I was like, all right, cool. It's not going to cost me a penny. And I talked to my DJ friends and they were willing to do it. They split the revenue with me. So I only made 25% of the revenue. 50% went to the club, 25% went to the DJ, 25% went to me to put everything together. But it was a start. And I started doing that in college.
- [22:50]
D
And already I want people to think about how you're thinking differently about money. Because bringing this back to the idea that there are habits that keep people poor. So one of them is living and thinking in cash. And so if you're storing your money in cash, you're not buying assets like you were talking about earlier, things that you purchase that give you money. The company that you're talking about building now, the company that I built, those are assets. Apartment complex, an asset, potentially, there's actually some complexities there. But buying into the stock market, right, Assets. So if you're thinking in cash and the cash supply is being inflated, then your buying power is going down. So going back to your point about the poor getting poorer, so we're pulling down their buying power. And then also, just the way that you start thinking like an entrepreneur about, like, I don't have the upfront capital. This is another mistake people make. Oh, that's okay. For people that are already rich, they can do things that I can't do. But you weren't thinking that, right? So you, I'm sure, went to people and they said, okay, cool, give us upfront money. You didn't have it, so you go on to the next person. But because you keep going until you find the person that's like, okay, word, like, come in, throw your party. I'll take half up front. You even find partners again, paying them in equity. You're paying them with future money that you don't currently have. Like, that one thing alone is a huge habit difference between people who think I trade time for money, right? I go and I work. I give you my time, you give me that money. Nothing wrong with that. And it's the path that most people will take. But for people that really want to understand what we're about to go through, because this could be nothing in a year from now. We look back on this video and we think, phew, thank God that it didn't get as bad as it could. But we could also be headed into a recession, like a deep global recession that could last a year or two years or more. So getting people to think more entrepreneurially, like you're laying out in the story, I just want to orient people to the fact there's nothing necessarily different about you. Anybody can think like that and get the kind of results that you end up getting.
- [24:51]
C
I think it kind of goes back to what you were saying. It was before we started rolling where you said you were dumb. And so you asked a lot of questions for me. I said I was dumb because I didn't really care about risk. I never even looked at risk. For me, it was opportunity. That's all I saw. And it was just a way for me to get started. And, you know, I was called stupid and dumb all the time. And nowadays if I'm not called stupid, it's probably not a crazy enough idea. And so that's kind of exactly what you're saying. I started making this little bit of money and it started to grow and had some cash in the bank. And now I started reading these books and they talk about investing in real estate. I was like, all right, let's try this. So I was 19 at the time, and I started looking at real estate investment properties. And again, I didn't know what was normal. And I took my MCAT on August 22nd. August 23rd, I closed on my first real estate investment property. It was a small 1000 square foot condo out of foreclosure, and I bought it for eight grand as a total price of the condo. And that's insane. That same condo sold for 150 grand just a few years prior. And that condo then started paying me $600 a month. And now, you know, you talk about extending time for money. See, in the beginning, I didn't understand that concept because when I was working in this event planning company, it was just me. If I didn't do everything, nothing was going to happen. But then this real estate investment property changed the way I thought about it, because now all of a sudden, this asset, I bought this condo, it's paying me money. And I don't got to physically go host a party. I don't got to go flip pretzels. I used to work at Auntie Anne's Pretzels as well. I don't have to go and do something. It was just there. I owned it. And now this condo is paying me for just owning the asset. And now all of a sudden I start thinking different. I started to get a little bit upset because I was like, well, why was I never taught about this? We're not taught about investing, we're not taught about financial education, we're not taught about wealth. And that's, you know, talking about now money habits. Well, how. The next habit you got to understand is you got to be able to ask questions. Because if you don't understand the way the system works, they're never going to be able to answer or ask the right questions. Because the way that the system works across the board is, you know, in a company, you have the workers, then you have the owners. It's kind of like a overlap. And sometimes the workers are the owners, some of them kind of in the center. But the workers are the ones that are now working every single day. You get your salary. The owners aren't working for a salary. They're working for equity profits. So they're hoping that now the workers will be able to drive up the profit. So now the valuation of this asset is higher. Now, when you have this sort of inflation, who hurts the most? The workers? Your incomes don't grow to keep up with inflation. However, the asset value, which is now the value of the company, disproportionately gets benefited because now this money gets printed. It gets created out of thin air, it flows into assets, and that makes the valuation of companies, for example, to go up. So now you have these two things, right? You have the workers and you have the owners. This is how it works.
- [27:54]
D
So depends on what companies get that money. How did they decide? So this is the first time ever that they decide to buy company stock.
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C
How did they pick bond, etc.
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D
Bonds are.
- [28:08]
C
So how does the Fed decide? I have no idea how they decide. However, let's think of it this way. So stimulus checks went out, right? People get cash, you feel wealthier in the short term, your bank account goes up. Some people took this cash. Maybe they paid off some debt, maybe you go and invested this money. But a big chunk of people took this cash and then they went out and they spent it. Well, if you need this money. Well, yeah, and you had this whole range, right? Some people really needed it. Some people went to Walmart, they went to Kroger, they went somewhere and they bought groceries. But still the money, where did they go? They went To Walmart, Kroger and those, those companies saw bigger profits because as money was printed, it goes into the hands of people and then it flows to the corporation. Other people went to Louis Vuitton, they went to Gucci, they went to the Apple store, they went to Lululemon again, who does the benefit? So the money was printed out of thin air. Somebody has to pay a price for that. The regular person, average people, they have to pay now higher taxes, which is inflation in this case. Yeah, the invisible tax.
- [29:07]
D
It's not a true tax. They'll be confused by that. But it lowers your buying power. Lowers your buying power, the tax.
- [29:14]
C
And then where does all the money flow? It flows now to whatever you buy. The wealthy, the rich. And so now what do you want to do? You know, go back to that system. You have the workers and the owners. Everybody in America should be a business owner. However, not everybody should be in the business of starting a company and not everybody should be in the business of operating a company. So what does that mean? Well, you can be a worker and an owner, right? This concept of equity, you have to understand this because wealthy people are working for equity. They're not just working for a salary. And so what you want to do now is, you want to understand, okay, I'm working every day to get paid. Now what are you doing with the salary? Either you could take the salary and go out and spend all of it, or you can take some of the salary now and work to build equity. Maybe that's in stocks, maybe that's in real estate, maybe that's in your own company.
- [30:01]
D
So if I buy stocks, I'm buying
- [30:03]
C
equity, you're building equity. You're literally buying ownership. In companies, if you go out and buy a share of, say, McDonald's, you become one of the owners of the McDonald's company. And now when the McDonald's valuation goes up, you get to share in that because the price of your stock, the value of your stock goes up.
- [30:20]
D
Do you know the Wall Street Trapper?
- [30:22]
C
I do. I've seen his videos with you.
- [30:23]
D
Dude, he's so dope. So he talks about if I'm going to wear it, I'm going to own it.
- [30:27]
C
Yeah.
- [30:27]
D
So if I'm going to wear Louis Vuitton, then I'm going to own Louis Vuitton stock. And ah, that's so smart. Like, just here's the, like, I know what this video would have sounded like to me if this was the first video I encountered. It's, it's so heady. It's just like, oh, my God, these ideas are so complicated.
- [30:47]
C
Right.
- [30:48]
D
So going off of what you're saying, let's give people a waypoint here just to help them anchor. So we've got a few really important ideas. So one, there's a saying, the hidden tax, as you call it, which I love that idea. So you've got inflation. Now the government is trying to help you. I'm not even going to say that there's anything sinister. They really were just doing their best. Sure, we got hit by the pandemic. Who the hell knew what the way out was going to be? They work with the Fed, they pump just a lot of money into the system. So we end up having what was looking to be the greatest global depression since the Great Depression in 1929, but it only lasts for two months because we end up injecting all this money into the system. So cool. The catch is that the way to get that into the system, it can be give people money directly, which they did. But the people that really need it, they're going to buy groceries. So it doesn't. They're still trading time for money, in essence.
- [31:41]
C
Right?
- [31:41]
D
Because they haven't broken that cycle. If the government's not giving them money, they don't have anything. Then you've got people. I'm talking averages here. You've got the middle class, they're going to Louis Vuitton. Oh, word. Like, I've already got my groceries taken care of, so now I can go buy that handbag that I want to do a little Instagram flexing, whatever. So they didn't help themselves out. But then you've got the wealthy or the educated. That's probably a better way to think about it. You've got the financially educated because they're educated, they owned assets already, which is the easiest way. The traditional way for the Fed and the government to pump money into the system is to buy assets. So they're going to buy these bonds just to keep it really simple. This is overly simplified, but they're buying these bonds. So now you've got people like me, who was not a good investor, but I can afford a money manager. And so the money manager's like, yo, you need bonds. Not now. This was before. So I buy the bond. So, hey, now I'm backed by the government because they know that they can print money out of thin air. So now I'm getting this return on my money. My money's protected. Instead of being deflated, they're buying my assets. So now I want People to know the wealthy, some of them myself, because I was not financially educated as of two years ago. I'm only just now getting that way. So I've been a good entrepreneur, a bad investor. But because of that, like, the system is, I'm learning about it by asking all these dumb questions. And I'm really seeing how it works. So it's not like I was doing something nefarious. For me to get richer during this time, it was just like, oh, I need assets. Break the time for money equation. I've got all this risky money in building my business. I wanted a more sure thing. So then the bad thing happens. My sure thing gets taken care of by the government. And now it's like, oh, it looks like, you know, the rich are getting richer. It's just education. So now getting into money habits. The other thing that you talked about is while your friends were spending their money at a party, you're spending money on building a business.
- [33:35]
C
Right.
- [33:35]
D
Like, that fundamental difference of spending it on fun shit that goes away, or equity, in this case, your own company is a world of difference. So I just want to anchor everybody back around to those, like, money habits. You've got what all my mom would have called pissing money away. Right. Literally an alcohol. You're just pissing that money away or putting it into something that's going to go to work for you. In your case, it was a business, it was real estate.
- [34:01]
C
Yeah.
- [34:02]
D
If people can just grab that fundamental difference, like, of, hey, start thinking about the world in this different way, they're going to be a huge step forward.
- [34:10]
C
And it's all a learning process because I don't drink, I don't smoke, I never drink. But for me, it was the only. It was, it was a hustle, Right. It was the only way that I knew to kind of start making some money. And so it's how you start and you learn. And each one of the things that you kind of do, you're going to learn something new and you're going to be able to apply that to the next thing. And it really is that shift, you know, I call it the minority mindset. Thinking differently than the majority of people because it's, it's doing something different. Most of us are taught just to be consumers.
- [34:40]
D
We're taught time for money to buy cool things, to flex.
- [34:43]
C
Exactly. And that's it. We're never taught to do anything else. And I mean, think about the last time your teachers taught you about the importance of investing your money.
- [34:50]
D
They don't know how to do it either. They couldn't hope to teach me.
- [34:53]
C
And so that's where you have to be willing to go out of your way to learn how some of these things work, because if you don't, you're just going to be a pawn in the system. And it's very unfortunate. It sucks. And, you know, this is where I'm trying to help provide that education, because these are things I never grew up learning. These are things that I wish somebody would have told me. You know, I've see it. I see it in so many people. I used to guest teach in Detroit public schools. Whoa. And you know, these are good kids from rough areas. A lot of times don't have two parents in the home. Sometimes don't even have a parent in the home. There were some kids he didn't have, or his mom is not around. He was raised by a gang just because there's no parents. And so they provided him shelter. And it's crazy because you get stuck into a system, a cycle, because you don't have any way of learning or seeing anything else. And, you know, like, one of the first times I was there, I asked the kids, how many of you guys have a job? Most of them raised their hand. Most of them have an income and they're in high school. Right. They're going to school and they're working. And next question is, how many of you have a bank account? Nobody, not a single person had a bank account.
- [36:04]
D
Jesus, man.
- [36:05]
C
So I was like, what do you. So how do you guys. What do you do with your money? They said, we get a check. We go to the liquor store. We cash the check. Now the liquor store owner is going to take, you know, 1 to 10% of that check.
- [36:14]
D
Oh, God.
- [36:14]
C
And then what are you going to do? You're going to buy candy, you're going to buy pop, you're going to buy a bunch of dumb stuff on your way out. And now you're left with only half of your check. And now what do you do? It's just, I like to call it net zero, thinking where if I have cash, I need to spend it. I have $500 in my bank account. I got to make that zero. If I have a thousand dollars, I got to spend it. Because we think, oh, my God, if I had 10 grand, I would go on this nice vacation. If I had 50 grand, I would buy this car. We think in terms of. It's that consumer mindset of, if I have this money, I need to spend it. But this is where we have to break out of that and understand what can we do differently and instead of just spending all of this money. And it's much more difficult now because of the higher cost of living, but it's so much more important now than ever where you got to create this margin, I call it like an equation where you know, your, your wealth is really you, you take your income minus your expenses and that's equal to your investments plus your savings. So you take your income, whatever money you make, you subtract your expenses, your houses, your, your home, your clothes, your car, whatever your expenses are. And if you have some money left, either this money is going to be saved or it's going to be invested. Well, if you have some money left, you're already, you know, doing something that a lot of people are not doing. You're more than the majority of people right now. I just read a study yesterday. Seven out of ten Americans across the board are living paycheck to paycheck. 50% of Americans that are making $250,000 a year are living paycheck to paycheck. That's crazy. It's not how much money you make, it's what you do with the money you make that is so important. And so now if you have a buffer, you're already better than the majority of people. Now the question is, what do you do with it? Well, we're taught save it. Save all of it. So your investments are zero and your savings are trying to grow. That thinking that you're trying to, you're going to become wealthy, but you're never going to be able to out save inflation. You're going to, your savings are literally making you poorer each and every day. However, you don't want to just not save any money. You got to be strategic with it. What I like to say is there are three reasons why you should be saving money. You save money for an emergency, have somewhere between three to 12 months worth of expenses, depending on your risk tolerance. Save money for a big purchase. You want to buy a car, you want to buy a house, you need some cash to do that. Save money for an investment. If you're not saving money for one of these three reasons, you are saving your money the wrong way and it's making you poorer each and every day.
- [38:36]
D
Now you didn't say save for retirement.
- [38:37]
C
You here invest for retirement. You know, you talk about retirement, retirement, we're about to face a, a big retirement crisis. Because traditionally retirement was what people like to call a three legged stool. You had your Social Security you had your pension, and then you had your own investments or your savings. What a lot of people like to do. Well, pensions are something you only read in history books anymore. They're a thing of the past. So those don't exist anymore. Social Security is running into a very, very, very big dilemma. Because right now, if you are, you know, under the age of 45, the Social Security money that you're paying isn't going to go to fund your Social Security income. It's going to fund somebody else to retire. Because the Social Security program has much bigger expenses than income. And so it is on the path of being completely dried up, of just running out of money.
- [39:30]
D
Is this because the younger demographics are just a smaller cohort than the older, or.
- [39:35]
C
There's a lot of reasons for it. It's how the Social Security money is spent. It's. It's how many people are requiring Social Security money, how long people are living for, how long these Social Security checks have to go out for. A lot of bad calculations, bad investing. And so the Social Security fund is now drying up. And so now everyone says, well, I'm not worried about it, because the government can just print more money and do bigger Social Security checks. That's what we're seeing this year. We saw between 2021 and now the biggest Social Security raise ever is between 5 and 6%, something in that range, which one is already not keeping up with inflation. So, yeah, you got a bigger Social Security check, but, oh, no, it's not buying you as much as you could have last year. But then the second issue is, just think about that for a second. If the government is going to print more money, which means the Fed is going to print money, give that to the government to give you bigger Social Security checks, what does that mean? You got a bigger check, great. But now the cost of things have grown even faster than the growth of your check. You cannot outprint inflation. It just creates more inflation. And so, you know, so you had the pension that's. That's essentially gone. For the vast majority of people, Social Security is not going to be able to fund your retirement, which leaves people with the third stool, which is your own investments. Now, traditionally, you say, oh, I'll save some money, save 10% of your income, that's not going to do it. Your savings are going to make you poor each and every day. And the second thing is your 401K. And, you know, it's a great start for the average investor because now it is like automatic putting a little bit of money into some investments. However, your 401k was never, ever, ever intended to be your sole investment plan. The founder of the 401k even came out and said that the 401k has gone awry. It is a monster because now so many people are hoping that they're going to be able to rely on their 401k to retire, and that's not what it's intended for, and it will never be able to be enough for you. And so a lot of people have this false hope that, okay, yeah, whatever, Social Security will give me a little bit extra, but my 401k will take care of me. But that was never the plan. And so now what does that mean, your 401k? Just think of that, like, as if you invest in your 401k, your IRA, that is the absolute base. Your savings are not gonna do it. This is where you have to go and invest yourself. And that's where. Oh, my God, how do I do that? We're never taught how to do this. We're never told how to do this. We're never given direction on how to do this. So you have to be the one now to go out of your way to start learning this. And thank God for YouTube, because now we've decentralized education. But the question is, now you have to be willing to do it, and you have to understand who your teachers are, because there's crap on YouTube. There's also good stuff on YouTube, and we're never taught how to learn. We're usually just taught what to learn. So now we have to be willing and go out of our way to become smarter to one, start learning and understand how do we learn the right things and then apply it. Because the downfall with investing is it's risky. You got to be willing to get punched in the face. You have to be willing to lose money because it's a part of the process and it sucks. It sucks losing money. I made a video on my YouTube channel, Minority Mindset, where I went over my worst real estate deal ever. And the reason why I made it is so you can see, look, every real estate investor has got at least one bad deal. And to date, that's the only deal that I've ever lost money on. And I'll walk you through every single bad thing that I mean, because everything that could have gone wrong went wrong, plus a whole lot more. I mean, it was one of the biggest headaches of my life. But my goal is, you know, yeah, you can laugh at me, make fun of Me. But you're gonna see like, holy cow, things can and will go wrong. And so just anticipate it because that's. It's your real life tuition. You gotta be willing to learn. And, you know, it's a price to pay. And it's one of those things where, you know, just like with entrepreneurship, everybody wants to be successful as an entrepreneur. Everybody wants to be rich. How many people are going to be willing to get punched in the throat and keep going, keep getting back up and keep doing it? It's very difficult. Which is why, you know what, not everybody should be an entrepreneur. Try it. But it's not for everybody. But everybody can work to own this equity, right? This ownership, these assets. And everybody needs to.
- [43:41]
D
How much did you pay for your first share of Ford Motor Company?
- [43:46]
C
$2.
- [43:48]
D
So this is what I want people to hear, and I'm glad it's coming from you. I was very honored to have Wall Street Trapper on as well, because I want people that are, I know, minority in the name of your program isn't about being a literal ethnic minority, but it's about thinking in a new way. But having people that are minorities, at least in this country, say, like, hey, if you do the right things, you're going to be able to change your circumstance. What do you say to people that either think, well, it's okay for other people, but for me, either because I'm poor or I'm a minority, it's never going to work for me. Nine out of the ten largest banks get it.
- [44:28]
C
They get that.
- [44:28]
D
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- [44:31]
C
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- [44:34]
D
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- [44:37]
C
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- [44:40]
B
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- [45:10]
C
So I'll kind of give you the story of my family in that sense, because the reason why people come to America is because of opportunity. You have the opportunity to own something, own a home, potentially own equity in companies, build your own company. You have the opportunity to build something which is something that you can't do in a lot of other places in the World. My grandparents were refugees. They had some land. And in 1947, the state of Punjab was severed. And when that happened, if you were Sikh, which is the religion that I am, and you're on the west side, either you migrate east or you're going to be killed. So now my grandparents, literally all they had were the clothes on their back and a sword in their hand, and they ran. During the process, my grandfather was attacked and he had to literally fight for his life. He saw his uncle get his head chopped open in front of him, put him on a horse. That was the last time he saw him. He got to the new east side of Punjab in India and didn't even have shoes on his feet, didn't have a place to sleep, had literally nothing. Now, from there, you got to start, right? You got to start now, all over, from scratch. And there's a lot of political issues, you know, unfortunately over there. And so that's when my parents, my dad, you know, my mom were like, we want to get out of this country. We want to go somewhere where we have better opportunity to come to America where, you know, don't speak the language, don't know the culture, don't know the people, don't know how life is. I mean, India is a very different world. It's a beautiful place, but it's very different than here. And you start over. Why?
- [46:52]
D
As a minority.
- [46:52]
C
As a minority. Just for the opportunity. Because that's all, you know, there's risk, but you see the opportunity there.
- [46:58]
D
And do you think, looking back now, do you think that. Because it. I often think that what we refer to as being an ethnic problem is actually just. There is an element of what I call School of Fish. Like you're just. You're gonna group up with people that look like you. It's just so embedded in the subconscious. But I think a bigger thing is just. It's either majority or minority. Right. Because globally the Indian ethnicity is massive billions.
- [47:28]
C
Yeah.
- [47:28]
D
But when you come to the U.S. now, you're a minority. Do you think that the trade off of going from being the majority ethnicity, I mean, everybody in India basically shares the ethnicity. I know there's religious differences, but then coming here and being a minority, does the opportunity that America provide outweigh whatever detriment there is to being a minority?
- [47:49]
C
You know, again, if you're willing to work, you have to be willing to work and kind of just break out of whatever. Anytime you see a majority, kind of just group think, you have to be willing to question that. But, you know, the opportunity you have here in America, is it more difficult now than before? Absolutely. Is it more difficult for some people than others? Absolutely. However, it's the best opportunity you have in the world. And that's why, literally, even till today, you have people that are willing to risk their lives to come to this country. And I mean actually risk their lives. And so you have that aspect. And I can speak for me where Sikhs, the religion that I am, they are a minority in India. And there's a lot of issues that come with being a minority anywhere. But again, where do you know, here you have more opportunity than anywhere else. And so the way I look at it, for me personally, so my parents came to this country with next to nothing. So I got nothing to lose and everything to gain, right? And so this is the place where that opportunity exists. But now you have to be willing to work hard, but you also have to be willing to work smart. I can't stand when people say, work smart, don't work hard. But to me, that's all completely.
- [48:53]
D
Because you have to do both.
- [48:54]
C
You have to do both because if you're not willing to work hard, your smart working is effectively worthless. You have to be willing to apply both together. And I had none of this, you know, financial, financial education, right? For me, it was, dad, I want to go invest in real estate. You're stupid. Go become a doctor. You know, it's. It's. I had to do all my entrepreneurial stuff in secret. The first, my parents didn't even know that I was doing this business stuff until I was on the news. I was running a different sock company. And this is now, you know, a couple years after, and we were doing well, and we got featured on the local news. Now my parents got a call from a family friend, and they said, oh, we saw your son on the news. And my parents were like, oh, God, what did he do now? And they're like, no, no, he has this company. He's doing really well. They're growing. My dad was like, what? And so now, you know, he sits me down. He's like, what the heck is going on? And that was the first time. They were like, okay, you can actually do something with this, right? And it was like, you have to. For me, it was like, I understood what I wanted and knew that I saw this, like, really, I wanted to achieve success. And I knew I was doing it for good intentions. I knew I didn't have, like, bad intentions with what I wanted to do. But the question was, you know, how do I get There, because it was like, if I know if I try to convince my parents, it is like, it's going to be extremely stressful for me. I'm going to stress them out. It's just not going to work. So I'm just going to try to figure it out myself. And if I fail, well, guess what, I'm in school. So I kind of had that backup. But for me, like, I. Like, I went to law school as well. The problem was I wasn't the best student in school. In law school, particularly, I did well on the bar exam. I loved learning. And so for me, like, you know, I knew I needed to pass the bar, and so I studied hard and I actually did really well. But in the classes, I was not very good, except for the couple of the business ones, because I really enjoyed that. But for me, it was just like, I just need to get the degree. That way I can, like, be done with this. Because I went to law school because my parents found out that I wasn't going to be a doctor. They're like, you got to at least become an attorney to keep pride in the family. And so I was like, all right, well, if I go to law school, I can go to law school part time, and if I go to law school part time, I can work on me and my business full time. So that was my mindset with it. And, you know, but I knew that, yeah, if I graduate law school and things don't work out, I don't even know how I'm going to work as an attorney, because I have no idea. I don't know how to file a lawsuit. I have no idea, like, what to do. So if I graduate, like, I'm going to have to, like, start all over and figure it out after I'm done. And it used to give me a lot of anxiety, but I was like, you know, this is why I have to figure it out. It was a mission because, one, I wanted to do to give back to my family and myself. And second, I wanted to do it because I wanted to prove a lot of people wrong. And I remember when I used to talk about this, everyone's like, oh, you shouldn't do it out of spite. Don't do things because you want to prove someone wrong. I was like, you don't understand. You don't get some of the, you know, the. The things that you hear, the things that you see. And sure, you know, maybe it can't drive you forever, but it can take, I mean, that pain of seeing the things that people Say to you, because, you know, in between, I started a sock company and when I was doing the sock business, this is when, you know, people started to be aware that I was an entrepreneur and I wasn't like, super successful. I was doing okay. And that's when I got on the news. But, you know, just think about this. I was supposed to be a doctor. Now here I am selling socks on the Internet and everybody is like, oh, so you left, you know, this idea of becoming a doctor. Now you're just selling socks. And you know, hearing that for years, it's like, one day I'm gonna have your kid want to work for me. That was like in the back. I never said that, but I was like, in the back of my mind, your kid's gonna want to work for me one day. And it's like that driving force where I knew I'm gonna prove this person wrong. I'm gonna make this person, like, really, like, see that, hey, I, I am worthy, I can do something. But it takes a lot of work. You know, going back to that, but it's with anything, being willing to try, being willing to take risks, being willing to make mistakes, and being willing to learn from it. Because like I said, for me, I was willing to be dumb or stupid. I never saw that risk until more recently. Because for me, it was just like, I know this is what I want. And so the risk really was never even on my horizon. If I had a business idea, I would start it like that same night. Because for me, it was like, I just got to, I want to do this, I want to figure it out. Books weren't were kind of giving me an idea. My teachers weren't teaching me this. I don't know who to turn to. My experience was my teacher. That's how I learned how to be an entrepreneur, how I learned to start investing. That's when I started learning about money. Because you know, the whole issue with the money stuff, I mean, this is something that we're never ever even remotely taught about. And it's now becoming a real pressing issue.
- [53:36]
D
You have to be willing to try learn risk, failure. You are going to fail. I always try to get people to understand that failure is the most information rich data stream that exists. It sucks, it hurts, it can be costly. But one, in triggering the parts of the brain that have to do with pain, you trigger the parts of the brain that have to do with memory and focus. So you're more likely to really look at that thing that you don't want to happen again. To figure out why that happened, memorize it, and then you're going to get better the next time. And to your point about having a chip on your shoulder and people telling you that you can't do something and thinking one day your kid's going to ask to work for me, probably as a primary driver over an extended period of time. Like you said, it'd be a little caustic to the soul, but it's so powerful in terms of. So you've got light energy and dark energy.
- [54:23]
C
Right.
- [54:23]
D
Just to be like all Star wars about it. And if what I have found in my own life is that the hardest times, the light energy will only get me so far, and then I'll hit a brick wall and I'll want to stop. And it's only when I tap into the dark energy of, like, I will not let this person be right about me. I'm not going to back down because I know they're just waiting for me to fail.
- [54:46]
C
Yeah.
- [54:46]
D
That it actually does give me another boost. Now I try to split it, call it 80, 20, where I'm spending 80% of my time in the light. The beautiful things I want to do, the people I want to help.
- [54:56]
C
Yeah.
- [54:56]
D
But, dude, let me tell you, 20% of the time, I'm thinking that the person that really wants to tap dance
- [55:01]
C
on my grade gets you going, right?
- [55:02]
D
Yeah, 100%.
- [55:04]
C
And, you know, I. I found the same way. Because for me, in the beginning, it was just figuring it out. I went from business idea to business idea to business idea, because for me, I was just trying to figure it out, hopping from one idea to the next. But then, you know, you talk about the light energy. For me, it was my really driving, my passion and my mission and my purpose. And that became more of the light energy. Because now, you know, after a certain point, you're like, the money doesn't drive you. It just is what it is. Right. It's just like, I'm fine. Like, I. I'm not a very materialistic person. I don't really care, you know, about brand names, designer names. First time I made a million dollars, I was driving a $500 car. Right. It just doesn't matter. Like, sure, it provides some sort of benefit, more comfort, more value, but after a certain point that money is not a driver. It's now, what is my purpose? And for me, you know, that minority mindset where rich and started making videos, I wasn't doing it to make money. I did this as a hobby because I got scammed in that Sock company and just talking about things that, you know, I wish somebody would have told me when I was younger, like having to do with business, having to do with money. So I did it as a hobby. And people will say, you can't just do that as a hobby. I'm like, dude, you don't understand. I didn't invest any money into it. I was making videos off my phone about like a 30 or maybe $35 tripod off of Amazon. And I was just making videos for fun. And like, my friend asked me and I think I was around 10,000 subscribers. And he asked me, he's like, how much money are you making off of YouTube? Like, what do you mean? How much money are you making from your ad revenue off of YouTube? I don't know, what do you mean? He goes into my YouTube backend with me. And this is before YouTube had requirements of like, you gotta have X number of videos, X number of subscribers. Every time anybody could monetize any video. He's like, dude, you haven't even turned monetization on. Click one click. And now you can start making money off your videos. I was like, oh, I didn't know that. I really enjoyed it. For me, this was like really fun and something that I loved doing, which is why I did it. And then minority minds started to grow, started to make some money. And I was like, oh, I can actually like do this. Like, I can work on just spreading this, this purpose.
- [57:10]
D
What is it about what you guys publish that people respond to?
- [57:13]
C
It's one email, right? It's a newsletter. And you know it's coming, what time is coming, you know where it's going to be every day. And so people want to open it. We don't need to have a. The world is ending, you know where it is. And then we just break down what's happening in the stock market, the real estate market, the crypto market, what's happening with inflation, what's happening in the global economy. And then if there's anything else, we'll add that in there as well. And it's super fun. And so you can avoid that headache, avoid all that, you know, spending hours. And now here it is in a fun, ready to read.
- [57:40]
D
What should somebody that in this environment, they want to pay attention, they want to make the right moves, they've listened. They know that you bought your first stock for $2. They know that no matter what they look like, they need to changing their behaviors that they need to find assets. Like in this uncertain time, where should people be putting Their money. I know there's no one size fits all, so.
- [57:59]
C
So I'll tell you where I invest my money. I invest my money in five places, my business market briefs and other startups. I invest my money in real estate, invest my money in stocks, invest some money in cryptocurrency and invest some money in physical gold. Now, I don't recommend you go on and just start putting your money everywhere. Start with one place.
- [58:20]
D
How'd you pick those five and how do you allocate what percentage?
- [58:24]
C
So I don't. Giving a percentage will be hard because valuations change all the time. But I have been less and less actively. Before, my active investment main one was real estate. That was the thing that I loved and the thing that I really understood. So anytime I had extra cash, I would go out and buy rental properties. But now I'm doing less and less of that so I can have more money to invest in my own company market briefs. But now what I do is out of my company's minority mindset. I pay myself a salary out of that salary. Pretty much all of that gets passively invested. It gets invested into stocks, crypto and physical gold. So what does that mean? Right, well, in stocks I have a system where every Wednesday you can pick whatever day, it doesn't really matter, but for me, it's Wednesday, my money is automatically pulled out of my bank account and it's invested into a few different ETFs. So an ETF is an exchange traded fund and you could think of it like a group of stocks. So instead of going out and investing in Amazon, one company, and then hoping Amazon grows, you invest in a group of companies. Like some will give you exposure to 30, some will give you exposure to 500, some will give you exposure to thousands of. There's a bunch of different ETFs out there and there's ETFs for a bunch of different things. Like one example that I invest in is the S&P 500 ETF. The S&P 500 is a group of the biggest 500 companies on the stock market. And so when you invest in this etf, you're literally or indirectly, slash, directly investing in the biggest 500 companies on the stock market without individually investing in all of them. You invest in one ticker symbol and it gives the exposure to all of them. So you're in essence investing in the companies that make America. America. Investing in America. You can invest in specific sectors, technology, healthcare. You can invest in companies around the world, emerging markets. And so you can find these ETFs, you know, again, Google, search, YouTube, you'll find kind of the things that you'll see what you're interested in, buy what you're spending your money on. And, and so that's one thing that I do. I have a few ETFs every Wednesday, I'm buying that. And then I have my cryptocurrencies. So for me, you know, I think cryptocurrency is going to have a lot of value in the future, but I also believe it's going to be very volatile. I think we're going to see a lot of, you know, just like anything else, there's. There's a lot of dumb money in crypto. And, you know, anytime you have all this money that was printed right, money's going to want to go to dumb places. And so I think that we're going to see some cryptocurrencies go under. And again, what is that going to do? It's going to create panic and create volatility. It's going to create fear. So, you know, especially when the newer asset class, you have to be willing to understand that and withstand that. And so, you know, I understand that. You know, I'm not the most educated person in crypto, but I understand the basics. I believe in the value of the blockchain. So I invest in Bitcoin, Ethereum, and a couple of the smaller coins, the things that I believe in. And that's happening every day. And then I invest in physical gold every month. I have some cash going to buy some physical gold every month. And so this has happening on autopilot. It's automatic, it's passive, and it's consistent. And it's just a simple way for me to invest. Because what a lot of people try to do when they invest, they say, I'm gonna invest in the stock market, okay? Either, you know, when times are good, I'm gonna try to find the next hot stock. The thing that's been rallying like crazy. Everybody's been making a ton of money on it. So I come in and buy, and that's when it starts to go down. Then they get scared, they lose money, and then they sell. Or when times are bad, they say, I'm going to buy at the bottom. I'm going to wait for that perfect time to come in and buy. And this happened again in 2020 in just textbook form, because the market started collapsing, and it was the fastest collapse that we've ever seen in the markets, even faster than the Great Depression. Whoa, and so what I was saying was on YouTube, I said, look, here's what I'm doing. I'm buying. I have the companies that I like because my ETF strategy is happening passively but actively. I'm also picking and choosing what I want to buy. I already knew which companies and stuff that I wanted to own. I'm just waiting for a good entry point, a good price to buy. So what I said was, look, when things fall by 10 to 15%, I buy. When it falls by another 10 to 15%, I buy more. When it falls by 10 to 15%, I buy. Buy more aggressively. I just buy the way down in phases because I can't perfectly time the market. And anytime I said that, it was just a flood of comments, people saying, why would you want to buy now? The whole market's going to implode. It's going to go way lower. Just wait that we can get a better buying opportunity. And I said, I can't predict the bottom. That's not my game. I'm not trying to time the market. I don't got a crystal ball. And then what happened? The Fed opened up the money printer at and they did something called unlimited quantitative easing, which is something, you know, we've never really seen before. And so they just flooded the economy and markets with money. And now you had the market the fastest collapse other ever. And then you had the fastest stock market rally in the history of time. And it was like, no, I don't. I mean, I couldn't predict that. I don't know who could have. But if you were waiting to time the market, you missed the opportunity and the people that weren't trying to. And you just, you know, you wait for the good entry point. You're buying. Even when everybody's scared. They were the ones that were able to make a lot of money very quickly. Way faster than pretty much I could have anticipated or anybody could have anticipated. Just because you understood, you know, you buy in phases.
- [63:51]
D
This is such a big topic, man. I am so stoked that you're out there doing this for people. Tell them where they can follow you. Where can they sign up for your newsletter? It's so important.
- [64:01]
C
Thank you, man. Well, you can watch me on YouTube. Minority mindset. Minority mindset pretty much anywhere. And then you can check out the free financial newsletter at marketbriefs. Com.
- [64:10]
D
I love it. Everybody get financially literate. Until next time, my friends. Be legendary. Take care.
- [64:15]
C
Peace.