Latest / Money Grows on Trees / #206 - Reacting to BEST and WORST Viral Money Advice 💸🤯

Transcript

#206 - Reacting to BEST and WORST Viral Money Advice 💸🤯 · Money Grows on Trees

• 0:03
  I don't think anyone's self-made. Ain't no one self-made. Then
• 0:07
  a lot, the rest is really credit cards and personal loans.
• 0:13
  Okay. This is not a money problem. This
• 0:17
  I focus on buying assets like stocks and real estate. I pay me while I
• 0:23
  If you buy assets, they will pay you while you sleep, but you did have
• 0:26
  to work hard to get the money to buy the asset. You do have to work hard at some point.
• 0:30
  And the best way to create a passive income source is by investing in
• 0:34
  No, wrong. You're wrong. The easiest way to create passive income is to
• 0:37
  buy. I'm Lloyd James Ross, seven-figure investor and entrepreneur, and
• 0:41
  I've helped thousands of business owners and professionals turn financial stress
• 0:45
  into success. If you're stuck in old money habits, overwhelmed by
• 0:48
  investing, or unsure where to start, this is for you. I'll
• 0:51
  give you the mindset and strategies to take control, grow
• 0:55
  your wealth, and achieve financial freedom. It's time to make
• 0:58
  your money work for you. All right, this is a fun episode, because it's all
• 1:01
  about reactions. And I'm going to react, so it's going to be fun. So check
• 1:06
  We have probably just under a million dollars in debt,
• 1:10
  and we want to know how to get debt-free without filing
• 1:15
  Oh. Depends what the debt's in, I guess. If it's home debt, it's
• 1:30
  $335,000 is about student loans. We both have advanced
• 1:33
  degrees. And then a lot of the rest is
• 1:38
  $300,000 in credit cards and personal loans. Okay.
• 1:42
  This is not a money problem. This is a behavior problem.
• 1:46
  Like if you have $300,000 in credit card, I don't know how that's legal, but
• 1:50
  that's a behavior problem. There's some really ineffective behavior patterns
• 1:53
  happening that cause that. This is just the end of it. And how
• 1:59
  Stop getting debt. And then how do you get out of debt? Sell stuff and
• 2:03
  pay it off. Like there's no magic to debt. How do we pay it off? Stop
• 2:06
  spending flippin' money. You don't deserve any credit. You're done. Just
• 2:10
  flip, without filing bankruptcy. Yeah, I think by this point in time, bankruptcy is
• 2:16
  I think maybe on this occasion, I don't know what his advice is gonna be, but hey,
• 2:19
  bankruptcy ain't so bad. That's gonna take a long time to get out of that. Don't do that.
• 2:23
  If you want to get rich in your 20s, then you need to learn from rich people. If you don't
• 2:26
  know any rich people, don't worry, I've gotcha. I went from broke, $40,000 in
• 2:29
  debt, living paycheck to paycheck, to becoming a self-made millionaire at
• 2:33
  the age of 30. Now I teach others how it's done. First thing that rich people don't
• 2:36
  do is they don't work for the things that they own. They don't work for
• 2:39
  their house, they don't work to pay for their travel, they don't work to pay for their car. Like,
• 2:43
  I just got back from the most expensive vacation I've ever taken and I didn't pay for
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  I've actually been on 25 international trips and I didn't pay for one of
• 2:51
  them because we have a business where we get incentive trips,
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  Instead, I focus on buying assets like stocks and real estate.
• 3:04
  Yeah, so if you buy assets, they will pay you while
• 3:08
  you sleep, but you did have to work hard to get the money to buy the assets. So
• 3:11
  you do have to work hard at some point, but you also learn
• 3:17
  I don't have to work for money because what good is a Rolex if it only tells
• 3:22
  Oh, Rolex. That's really, mine doesn't even tell the time anymore. It
• 3:26
  You need to understand that investing is not just for the
• 3:31
  Yes. It's not for the rich, it's how you get rich.
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  You can start investing with just a couple of dollars starting today. She's right. God
• 3:38
  Literally buy an apartment building for a dollar if you wanted to.
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  You can do this by buying something called a REIT, a real estate investment trust.
• 3:49
  It's a company that owns and operates real estate and then shares their profits with
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  Yeah, it's where they get, they accumulate funds, they buy these real estate assets
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  and it's discretionary trust and they list it on the stock exchange
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  and you can buy shares in a real estate investment trust, but
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  you can't get them for, you can get some for a dollar actually. She's not too far off that you
• 4:09
  I used to make over six figures a year without working. Second thing rich
• 4:13
  people don't do is spend time with people that don't have the life that they want.
• 4:16
  If you were trying to get sober and all of your friends were heavy drinkers and spent every weekend in
• 4:22
  When I started hanging out with people who were making six figures a month, wealth became
• 4:25
  like demystified for me. I realized when you know how money works, the
• 4:29
  amount that you can make is endless. The third thing rich people don't do is
• 4:55
  If society doesn't have it, it's in a warm water chokehold, you got yourself in
• 4:58
  a chokehold. If you're like, oh, but it's not that bad. It is bad, change it.
• 5:04
  You need to start studying the crypto market, bro. The crypto market's gonna be much more easy.
• 5:07
  I trade, I trade buy. No, no, no, no. Not because you're fucking trading
• 5:11
  pips on the fucking one hour a minute. Perfect, make money,
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  make money in forex, make money trading, day trading. Now you have to start understanding crypto.
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  Not the day, you can't day trade. Swing trade, on
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  You can't day trade crypto, swing trade crypto. You know what with
• 5:27
  crypto, you can't make money trading anything. You
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  can, but there's no one in the top 400 wealthiest
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  people list who's a crypto trader, no one. They
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  don't exist. It's like you've never seen a 95-year-old fat person because
• 5:42
  they're dead. Because no one ever made it. But the other thing about this is look at
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  the character, look at the guy. Tats, arm tats. It just
• 5:49
  attracts the crowd of people. I wouldn't want to be around. based
• 5:57
  in momentum, bro. I hate people that use the word bro. Don't
• 6:00
  like this guy. These are the types of people that flippin'
• 6:04
  in crypto, like you gotta decide who you wanna be hanging around. You wanna be
• 6:08
  hanging around the crypto bros that like create momentum. And he's
• 6:11
  probably broke. He's probably also even got like, you're gonna
• 6:18
  Find the narrative, find the builders, find the momentum, find
• 6:22
  the audience, find where people are interacting, what people
• 6:26
  are talking about. Dude, the money in crypto is next level shit. Next
• 6:30
  The money in crypto is next level shit. What's fascinating
• 6:33
  about crypto people is they go, crypto is gonna replace fiat currency, but
• 6:37
  all they're obsessed about is fiat currency. So the story's BS
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  and it'll come down to zero eventually. You watch, I promise you. Just
• 6:44
  quickly, if you're ready to take control of your finances but feel stuck on
• 6:48
  where to start, I have a solution. My book, Money Bias Happiness,
• 6:52
  simplifies investing and wealth building with practical steps to help
• 6:55
  you achieve financial peace. Get your copy via the
• 6:58
  link in the show notes and let's get your money working for you. Now back
• 7:02
  Day traders have it all wrong. They see the market run up, they sell it,
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  it comes down, they buy it, it runs up, they sell it, it comes down, they
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  buy it, it runs up, they sell it, and then, whoa, prices take off,
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  and they sell, and they lose money all the way up, not
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  realizing the only way you make money in the market is to
• 7:20
  catch trend. It doesn't matter if you're a day trader or a long-term trend. trader.
• 7:28
  Now, we also know this... Trend, yeah, sure,
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  trend. Incorrect! What you need is you need to buy a good quality
• 7:35
  business because at the end of the day all stocks are pieces of good quality businesses so
• 7:38
  you don't need a trend. because trends come and go. But if
• 7:42
  you invest in a really high quality business, let's say, for
• 7:45
  example, Costco, even Walmart, for a long time, has
• 7:48
  been a really good business. There's tons, I could go on and on. Nowadays, Google's
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  a good business. These businesses, to make money
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  long term in the markets, you have to identify high quality businesses, buy
• 7:58
  them for reasonable prices, and hold them through all trends. And
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  a great quality business will be immune to
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  trend change. So Costco will still be
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  a good business through the AI trend, through the internet trend. It
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  will still be a good business. So you don't make money following trends. That's, I
• 8:15
  would say that's incorrect. This is out of my scope day trading. I just think it's
• 8:18
  just takes up so much of your time and more often than not. See, here's the thing. If
• 8:22
  the more decisions you have to make as a human being, the increase chances
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  are you're gonna make the wrong one. And that's why trading is not an effective long-term strategy
• 8:33
  In 2013, a British man accidentally threw away a hard drive.
• 8:37
  It contained 7,500 Bitcoin. Fast forward
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  to today, the crypto inside that hard drive is worth more than $350 million.
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  His name is James Howells. He's an IT worker
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  from Wales. Over the past eight years, he's been on a mission to find
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  that hard drive by digging through his local dump. But
• 8:56
  Yeah, that's brutal. The thing with crypto is it's worth what
• 8:59
  someone's prepared to pay for it. it's called the greater fool theory
• 9:03
  and it's only worth what a greater fool is prepared to pay. So assets like
• 9:07
  crypto and like gold, they actually don't produce anything,
• 9:11
  they're not productive. So like for example, if you had crypto and you had some gold
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  and you came back in a hundred years, it'd just be the exact same thing, be a piece of code,
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  which is all crypto is, and then it'd be a piece of gold. It
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  wouldn't have produced anything. Whereas if you buy productive businesses or
• 9:24
  you buy productive land, you come back in a hundred years and
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  it's developed and produced lots of things for society. So it's good for the world. These
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  two things, Not good for the world. Here's an
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  example. If you took away all the best businesses in the world
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  and all the arable land in the world, the
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  world would end. If you took away all the crypto in the world and all the gold in the world, the
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  I became a millionaire by age 26 and became financially free
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  by age 30. These are three best tips that I can give you as
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  I don't think anyone's self-made. Ain't no one self-made. You
• 9:59
  know, Steve Jobs created this. You use this to make money? Ain't self-made.
• 10:04
  Number one, you have to live below your means and stop buying dumb shit.
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  Yes. If you're not making over half million
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  dollars a year, you shouldn't be driving a German car. Instead, you
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  should be driving a Toyota or Hyundai. Number two, you have
• 10:18
  to find a way to make money in your sleep. If you don't do that, you're
• 10:23
  And the best way to- You're gonna probably wanna work until you die anyway. I don't
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  agree with that, because work gives you purpose, so you just change your work.
• 10:33
  And the best way to create a passive income source is by investing in
• 10:36
  No, wrong! You're wrong! The easiest way to create passive income
• 10:40
  is to buy dividend stocks. There's no transaction costs, there's no upkeep. Anyone
• 10:43
  can do it with a small amount of money. You can start with a few dollars and anyone can start there.
• 10:47
  It's way easier than real estate because real estate is so expensive. You need a ton of cash to
• 10:50
  deposit, you need to borrow money, you need to look up. It's not the easiest way. It's
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  And no, nowadays you don't need that much capital to invest in real
• 10:58
  estate. You can start out by using a strategy called rental arbitrage.
• 11:02
  Yeah, in America, maybe you can use rental arbitrage, but you have to get permission
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  from the landlord to sublet your place out or doing the subletting to Airbnb,
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  you have to get permission. It's a bit tricky, not as easy as what they say.
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  You can also do land options, put in call contracts. You
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  can buy and resell at like what's called simultaneous settlements.
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  You can do that, but there's always risk in it. It's just that real estate, it
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  takes a lot more, a bigger swing and there's more risk in it than
• 11:29
  We're at $25 million worth of debt. which means exactly
• 11:33
  what you think. We owe banks $25 million, which costs us
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  about $127,000 a month in mortgage payments to
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  the bank. But, like most things, there are two sides of the coin.
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  That $25 million in debt allows us to own
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  So if you've got $42 million in assets, you've got $20-something million in debt, you've
• 11:51
  got 50% gearing. I bet he's going to talk about 50% gearing, which means your
• 11:54
  assets are producing a ton of income to service the debt, in which case it's
• 11:58
  But it gets even better. that debt owns real estate assets,
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  and those assets bring in about $287,000 a month
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  in rent. So $287,000 in rent every single month,
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  $127,000 in mortgage payments every month, leaves $160,000 every
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  single month that I get to put in my pocket. Now there
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  are a lot of other expenses that come out of that, so it's not near that much that
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  Sure, but like, that's a fun hook. I mean, $25 million in debt, what?
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  But of course, Most big asset holdings like that and
• 12:27
  businesses, 50% gearing is not that much. I mean, it's a
• 12:31
  little bit, but for real estate assets, it's really good. Yeah, awesome. Good on
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  I borrow money, guess what? Do I pay taxes on debt? I
• 12:40
  guess no. Why's that? Why is debt tax
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  free? I don't know. Because
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  that's how money is created. And
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  so the banks love it. They love people borrow lots of money.
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  What is interesting about this is he's correct. Money is actually made
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  through banks issuing debt. That's actually how money is made.
• 13:02
  It's not the Federal Reserve, it's the banking system itself. Because when they issue a
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  Well, if you borrow money at a certain rate and you invest in assets that are
• 13:15
  growing beyond that rate, you will build wealth as long as
• 13:19
  you don't take off too much debt when the assets fall in value and
• 13:22
  the repayments don't cover the repayments, you can implode. And that's exactly what
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  And I buy assets. The poor
• 13:32
  person borrows money and buys liabilities like purses, car.
• 13:36
  So it's in his book, right? He's the GOAT when
• 13:40
  it comes to that. I agree. Go Bob. I
• 13:43
  don't agree with Bitcoin stuff he talks about. Hey, that was heaps of fun. Thanks for sending them
• 13:46
  in. If you want me to react to any other videos, send them in and we'll do it
• 13:50
  and we'll have some more fun. So yeah, see you next episode. Thanks
• 13:53
  for listening to Money Grows on Trees. If you enjoyed the episode, leave a
• 13:56
  five-star review on Apple Podcasts and Spotify and subscribe
• 14:00
  to us on YouTube so you never miss an episode. And if you're serious about
• 14:03
  building wealth, make sure to check out the links in the show notes and follow me
• 14:07
  on all social media platforms, at LloydJamesRoss for