What Does It Take to Be Rich?

Hey guys, in this video I want to share something with you that is just so important for you to get. I talk a lot about building businesses and investing the profits on this channel. And in this video I want to give you some context to why we talk about that so much. Because once you watch this clip, you're going to see that I really believe that anybody can do this.

If you do.

What we talk about in this clip, that was from a coaching call from our membership area which is called the 1%. It's all about getting to this. The top 1% richest people in the world. You're gonna see anybody can do this. So watch this clip and you'll see exactly what the strategy is that anybody can do. That's super simple. That'll take you to that top tier. Enjoy.

I wanna paint a picture for all of you that is going to give you a renewed vision for where you are going and where we are all going together. All right? So I want you to, I want to ask you a very simple question. I want you to put in the chat box your best guess. If you live in the United States of America, what do you think your net worth needs to be for you to be in the top 1% richest people in the country? And net worth, remind remember, is 401k house value, saved money, investment value. What is your net worth need to be in order to be the top 1% in the country? The number to be in the top 1% of the country and thus the world is $2.6 million. $2.6 million. Now how do you feel when that number is set? $2.6 million. Does that seem high? Does that seem low? Does that seem right on, right on point? Justice, what was your take when you heard that number? I was, it felt, I was like, gosh, that's, that's high but doable. Like I was like, man, that's, how do I get there? That's the first thing that went around was like, how, what does that look like? It's like a soup, it's like a super reasonable number. Yeah. If you have a net worth, a net worth of $2.6 million, you are one of the, you're one, you are richer than 99% of the world. What do you think you need to earn income wise.

In order to be one of the top 1% income earners? Not net worth, just income earners. The top 1%.

Earns $455,000 a year.

Now.

Something stands out to me about this.

If you earn $455,000 a year. You should totally have a net worth of 2.5, $2.6 million, like, fast.

So why is the first number so low?

That was my question. Why is. Why is the first number. So why Is it only $2.6 million if the top 1% earn $500,000 a year, you should be able to get a net worth of $2.5 million real fast with that type of income. Well, why do you think that is?

CJ Asked a magic question. He's like, where's all the money going?

What this means is that most people spend all of their money because people know how to make it. They don't know how to keep it.

Friends, if you make money, but you don't know how to keep it, is that freedom? Ooh, do you have freedom if you can't keep it? Or are you always enslaved to the fear that it's going to go away, that you are one step away from it all crumbling?

Wow.

That ain't freedom. That is not freedom. When I shared this with justice, we had a really great realization that talking about wealth generation is something we need to talk about way more. Here it is. It. Because if you can make money and not keep it, you are just as broke as before. That's so good.

It sucks. But, like, let's get it on the table and deal with it and do something about it. Now check this out.

If you're. Let's say the goal. The goal is being in the 1% top, you know, 2.5-ish million dollars. $2.5 million. How much do you need to save and invest?

And let's go super conservative here. All you did was you put your money into S P 500 index funds, which on average get about 9.66% over the last, like, 60 years. It's average about 9.6. Over the last 10 years, it's been like 18%. But let's go over the last. The last 60 years. Average return 9.67%.

What do you need to invest every year for 30 years in order to be worth $2.6 million? And I'm going to fact check myself, and we're. And I'm assuming we're starting with zero. Starting with zero dollars, you just start today, you need every year about $15,000. $15,000.

Invested incredibly conservatively every year.

Into index funds, that's.

About $1,300 a month.

If all you did was start a business that only profited you $15,000 a year, and all you did was invest it into the index fund of the s and P500 and you closed your eyes and went away for 30 years. You'd be richer than 99%.

Of the.

Richest places in the world. Who the hell wants to wait 30 years?

Nobody wants to wait 30 years.

That'S who.

So you have two options.

You can.

Cut out $1300 a month in expenses. You can go for a raise at your job. You can start a little site you can take on a client pays you $1,300 a month.

You can like you could do any random thing to make an extra. Anybody on this call can make an extra thirteen hundred dollars a month. Or you can do what we talk about, which you can build a business and you can invest the profits. So let's take the 1% way, where you start a million dollar business. You go through our three stages. The grind, the growth, the gold. You set out to launch four products that do 25 sales a day at a $30 price point. You build a million dollar business, you sell it, you get a super low valuation, you get $1 million sent to you, right? Or maybe you got 1.5 for taxes. All right, $1 million is what you pocketed over the next three to five years after, after doing this together. And you followed the 1% way of how we invest.

Where we're shooting for 20% per year, that training is available to you. It's called Investing for Entrepreneurs. We did a live class about it. It's in your members area. It's how we shoot for at minimum about 20% per year. Being just a little bit active, just a little bit active. And then I want to pretend that you just went away and never touched it. You didn't add anything in, you didn't put any additional money in.

If you put your million bucks into the strategy we talk about and average 20% per year, which I know some of you is going to think is high. But if you go through the training, you're going to realize.

Not hard, not hard. It's pretty darn simple. So what is your million dollars at 20%? And you came back to it 30 years. What is that worth? $1 million. You took your million dollars, you put it into the strategy we talked about, got average 20% per year. You close your eyes and came back in 30 years. What do you think that is? This is the number. Are you ready? This is the number. $1 million.

Invested for 30 years at 20% is $237 million. Almost a quarter billion dollars. A quarter billion dollars. That's if you got a million dollar exit.

And you never put more money in, you never worked again. You never put more money in.

I started playing with these numbers and I was like.

I. I've had two moments in my life where I realized that I'm gonna be stupid rich, right? And by the way, like, I am super appreciative. Like, I. I have. I have done very well. I'm very thankful. I appreciate everything that I have accomplished. But I was like, oh, my goodness, I've been playing small. Those two moments were one, when I realized that Apple had just crossed a two trillion dollar market cap, and it was just two years prior that they had crossed one trillion dollars. And I realized, oh, my goodness, Tim Cook made a trillion dollars in two years. And when I was a kid, I used to pretend I was a trillionaire because I thought that that was like.

Making up a number.

So that was. I was like, wait, if Tim Cook can make a trillion dollars in two years, I think I can make a billion dollars in 30 years, right? He is not. He is not a thousand times smarter than me. He can't work a thousand times more than me. He can't. He's not a thousand times more talented than me. He might be a hundred times. He might be a hundred times smarter than me, but he ain't a thousand times right. He might work a hundred times harder than me, but he does work a thousand times. And a trillion is a thousand billion. So, all right, maybe He's. Maybe he's 500 times, but he ain't a thousand times. So that was the first time that I was like, okay, 30 years, I could be a billionaire. And running these numbers was the second time. Was the second time that I went, oh, my goodness, my goodness. And C.J. no, I was assuming that you had a million dollars from an exit and you invested it the way that we talk about in investing for entrepreneurs, which shoots for a 20% return per year, which, if you go through that training, you'll realize is actually the low end of what we shoot for.

But these two moments where Owen was like, it's all possible. Like, it can happen.

All.

All of you. All of you with a simple game plan. Yep, one will be in the top 1% and not. Not even, like, just barely qualifying. I mean, like, you'll be fine. You will do just. And that is not buying crypto. That is not.

You know, that's not having any, like, major, major wins. That is like singles and doubles and singles and doubles. You might have a home run or a triple in there and you might have some strikeouts. I did a video this week about how I lost $2 million on a project.

Right? I had some strikeouts too. And you know what's going to happen next. Like, because of the skill set I have now, I'm now back involved in that business. I'm very confident that's going to be a multimillion dollar. I'm going to swing all the way to the other side, going to come out net positive and guess what? I'll have a couple extra million bucks that I can put back into the system that is going to compound over 30 years and be, you know, an extra quarter billion. And I, you know, I have a mentor who likes to say every quarter billion dollars helps.

So I'm now thinking about this in like, in my mind. I think about it in million dollar chunks now. It's like every million bucks is a quarter of a billion dollars. This is so good.

Every million dollars is an extra quarter billion. So, okay, how many millions can I save, earn, launch, sell? Like, there's lots of ways to make a million bucks. Lots of ways. So like that's like my purpose in the 1% is to help you guys cross that, that hurdle, be on that path, go through the grind, the growth, the gold, while you are putting together your investment plan. So you are on the road to being in the 1%. Even if you get it half right. Remember, if all we ever did was put 15 or 16 grand into index funds for a long time, you're gonna do just fine. So as we're doing, that's like your base. That's like you should, I'm gonna teach Esther that, right? She's five.

Like my five year old can do that one. So like if you can't, you got no excuses. Well, my dad, my dad wasn't an entrepreneur. It's an analogy. She's five and a half. Okay.

So that's what we're going to be focused on. Like I am going to be reminding you of this over and over and over and over and over again. Most of you have no idea the potential you're sitting on. No idea. No idea. So let's fucking go.

All right?

So after watching that, I hope you can see literally anybody can do this. And you can take the simple route where you just take a little bit of what you earn and put it into long term stocks or investments that will compound over a few decades. Or there's a second way, the faster way you can build a business and you can invest the profits into those areas that are going to give you that wealth, and either one's fine. If you're an entrepreneur, though, when you want to go faster, you want financial freedom. That's what we talk about inside the 1%. It's what we talk about here on the channel. So make sure you are plugged in, because building a business and investing the profits is the fast lane to getting to that 1%. And if you want some help, you can join us over@capitalism.com 1. I hope you found this video helpful. Drop me a comment if it did. I'll see you on the next video.

It's a true stat that 99% of business owners never clear a million dollars. And that is why I started a mentoring group called the one percent. I have helped hundreds of entrepreneurs cross seven figures. There's a reason why that's the case, and it's because we have a formula that works really well. And this year in 2021, we've introduced mastermind groups at each level in the process. That's the grind, the growth, and the gold. So when you come join us inside the 1%, you'll be partnered with other entrepreneurs who are at your level to help you get through that level and accelerate onto the next step in your journey. You'll be following the same roadmap that I teach in my book, 12 months to 1 million. That's why we have such a high success rate, getting people to where they want to be. So go to capitalism.com1, scroll to the bottom, hit the join button, and for less than you spent on eating out this past month, you'll be in a room of entrepreneurs who are pushing you to go from where you are right now to the next step in the process. It'll be the best investment that you make all year. Come join us. We're ready for you. Go to capitalism.com1.