Alex Hormozi and Leila Hormozi discuss what wealthy people are actually afraid of when it comes to money and risk. The conversation reveals the specific fears that drive financial decisions among the rich, beyond what most people assume about wealth.
Many of the people that I know who have tremendous amounts of money have huge fears around being poor. And so as an interesting thought, like, a lot of people who don't have money see people who have money as thinking differently. And they might, in that they are more uncomfortable being poor than you are. Like, it is more painful for them than it is for you. It might be. I'm just being really.
It might be why some of them are stingy too, with their money. I'm not gonna spend this $5. I'm gonna keep it. You know, they're very stingy. Stingy with all of it.
Two nights ago, I was. We were out with. To dinner with a guy who just got valued at a billion, right? And it's all cash flow. It's not one of these software things. Like, it's off. Like, he's getting. Yeah. Like, he's making real money, crazy money. And he's like, I'm not going to that gym. He's like, for. For equal. I said, I'm not paying $200 a month for gym membership. It's. It's a different perspective now. I'm not saying I'm that way. You know what I mean? Like, I'm okay spending on gym membership. Like, that's fine for me. But like, everyone has their own things. And, like, there are these behaviors. Like, he got the other guy who had the 250. He got to that point because he lived. He squeezed everything out of his business, which made the business so valuable, and then he was able to sell it. But like the billion dollar guy was saying, he's like, you know what they don't tell you about when you sell your business? Because he's sitting next to the guy with the 250, right? And he's like, the moment you sell your business, he's like, you have no cash flow. And so he felt that too. He's like, what are you gonna do? He's like, you can take the money and then what are you gonna do? You're gonna try and buy more cash flow? Because you gotta replace the cash flow you have with the business.
You're real estate assets. You gotta do something else.
He's like, why bother? He's like, I'll just keep it. And so he doesn't have any intentions of selling. And so it was an interesting lesson for me too, because, like, we obviously got rid of our cash flow asset when we sold all three last year.
But you got a lot more money, but you don't have the money. Cash coming in Right.
Because then it looks like this finite asset, the business goes on forever in your mind at least. Right. And so it gives you this illusion of control, this illusion of security. And me personally, most people wouldn't believe this when I hear it, but like I'm very risk averse and so I probably need like what's the core changes that I need to have. I probably need to be a little bit more of a risk taker than I am. Like, I tend to always take the lowest risk path when I can. Even the idea of like when I quit entrepreneurship or sorry, when I quit my job to start entrepreneurship, it was because I knew that the path that I was on was guaranteed not to get to me where I want. So I had a zero outcome and that. So this one, even though it was lower, like I had a low chance of success, the other one had 100% failure guarantee. And so that. So it felt like the lower risk option for my long term goals to quit my job and become an entrepreneur for that reason. Instance. And so, you know, people are like, I'm really risk averse. I'm like, so am I. Like, I hoard money. I do.
You must get any of the money from the exit stuff. No, it's not sitting in the bank.
Nothing. We started working the next day. We didn't even take it. We didn't take a day off. We literally sold wire hit and we started working on acquisition.com the next day.
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