Latest / Money And Wealth With John Hope Bryant / The Difference Between Being Rich & Being Wealthy

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The Difference Between Being Rich & Being Wealthy · Money And Wealth With John Hope Bryant

• 0:00
  Speaker 1: Welcome the Money and Wealth with John O'Bryant, a production
• 0:03
  Speaker 1: of the Black Effect podcast Network and iHeartRadio. Hey, Hey, hey,
• 0:15
  Speaker 1: this is John O'Bryant. This is Money and Wealth on
• 0:18
  Speaker 1: the Black Effect Network. And this is an episode that
• 0:25
  Speaker 1: I was inspired to do to give people clarity. There's
• 0:28
  Speaker 1: a lot of misinformation out there, and unfortunately, when you
• 0:33
  Speaker 1: have made a certain level of success, you may assume
• 0:39
  Speaker 1: that people understand understand what's real from what's not, because
• 0:45
  Speaker 1: they would say real memorys back in the day, and
• 0:49
  Speaker 1: that is a presumption. And to assume is to make
• 0:53
  Speaker 1: an ass on a Hue and me. So we're not
• 0:54
  Speaker 1: going to do that. I'm apologizing whenever I assume our
• 1:00
  Speaker 1: zoom if somebody knows something, I remember. I asked Quincy Jones,
• 1:05
  Speaker 1: how do he get so smart? God rest his soul?
• 1:08
  Speaker 1: He said, I'm just nosy as hell, John. I want
• 1:10
  Speaker 1: to know everything about everything. And he would sit around
• 1:13
  Speaker 1: and ask me questions repeatedly about certain topics that he
• 1:17
  Speaker 1: was not an expert in. When I was around hanging
• 1:20
  Speaker 1: around TI in the studio, I'd ask him questions endlessly
• 1:23
  Speaker 1: about the music business or Killer Mike, my brother, same thing.
• 1:29
  Speaker 1: And then when we were talking about business, they would
• 1:30
  Speaker 1: ask me questions endlessly. My brother, Bishop td Jakes would
• 1:33
  Speaker 1: ask me questions endlessly about real estate, and I didn't
• 1:39
  Speaker 1: realize that they were going to their own version of
• 1:42
  Speaker 1: a master class. No different than when I talked to
• 1:44
  Speaker 1: Bishop td Jakes about faith. I'm going to my version
• 1:48
  Speaker 1: or his version of a master class. Right. I talked
• 1:50
  Speaker 1: to Bastard Andrew Young, civil rights icon, doctor King's right arm,
• 1:55
  Speaker 1: the man who helped to build modern Atlanta into the
• 1:58
  Speaker 1: only international city in the South, the only lieutendant of
• 2:00
  Speaker 1: Doctor King to build a city, talking to him about
• 2:05
  Speaker 1: civil rights and social justice and the right way to
• 2:08
  Speaker 1: go and the right way to build and the right
• 2:10
  Speaker 1: way to live. I went to his master class. And
• 2:13
  Speaker 1: so I've had to get out of my own way
• 2:17
  Speaker 1: and not assume that things are obvious. So let me
• 2:23
  Speaker 1: now take a moment as I hear all of these
• 2:26
  Speaker 1: folks out here talking about how easy money is and
• 2:30
  Speaker 1: how easy it is to make it, and all these
• 2:32
  Speaker 1: people so supposedly are millionaires and tens of millionaires, and
• 2:42
  Speaker 1: that I just needed to break this down. So here
• 2:45
  Speaker 1: is the topic for today, The difference between being rich
• 2:51
  Speaker 1: and being wealthy, pull up a chair, sit down on
• 2:55
  Speaker 1: your bench, sit down in the kitchen, grab a cup
• 2:58
  Speaker 1: of coffee. Take this podcast to the barbershop or the
• 3:02
  Speaker 1: Neil salon, and got of your friends and let's have
• 3:06
  Speaker 1: a conversation. I have a hat on right now. That's
• 3:12
  Speaker 1: about being lucky. This is my brand, says live lucky.
• 3:16
  Speaker 1: My brand. It's about black clover. Black clover the manufacturer,
• 3:20
  Speaker 1: but live lucky. It's my brand for my company. And
• 3:24
  Speaker 1: even says onder the bib, live lucky. You can live lucky,
• 3:28
  Speaker 1: but that doesn't mean you're going to be lucky. And
• 3:31
  Speaker 1: anybody who is a multi millionaire, multi multimillionaire in their twenties,
• 3:37
  Speaker 1: that was exceedingly lucky. But that doesn't mean you're going
• 3:42
  Speaker 1: to keep it. By the way, so let me pack
• 3:46
  Speaker 1: what real wealth is and how that differentiates from riches.
• 3:51
  Speaker 1: Those are two things are different though, different than being
• 3:53
  Speaker 1: a businessman or a business woman. It's different from being
• 3:55
  Speaker 1: an entrepreneur. It's different. Definitions matter, Hype tends to merge
• 4:03
  Speaker 1: things together. Definitions and details matter. No different than the
• 4:07
  Speaker 1: difference between being a hustler and a businessman or a
• 4:09
  Speaker 1: businesswoman is paperwork. Details matter. The difference is financial literacy,
• 4:15
  Speaker 1: and you know better, you do better. So again, the
• 4:18
  Speaker 1: title today is the difference between being rich and being
• 4:21
  Speaker 1: wealthy and when wealth really comes. I repeat that, the
• 4:24
  Speaker 1: difference between being rich and being wealthy and when wealth
• 4:28
  Speaker 1: really comes. Being rich is a contract. It's temporary, conditional,
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  Speaker 1: often loud. It's performative. You perform on a contract. You
• 4:44
  Speaker 1: do something contractually to deliver something of extreme value, typically
• 4:52
  Speaker 1: within a short period of time, and it's typically loud.
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  Speaker 1: It is not if somebody's making you rich through a contract.
• 5:03
  Speaker 1: They want to compressed intense value proposition that I'm asking
• 5:11
  Speaker 1: you to own the stage. They want you to rock it.
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  Speaker 1: They want you to rock that stage and rock that mic.
• 5:15
  Speaker 1: And I asked you to own the mic. They want
• 5:17
  Speaker 1: you to rock the mic. They owned the mic, Wealthy
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  Speaker 1: owns the mic. Riches rocks the stage. This is not
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  Speaker 1: a criticism, by the way, it's it's an explanation. I
• 5:26
  Speaker 1: didn't realize or when I was growing up, and I
• 5:30
  Speaker 1: was nine years old that when the liquor store owner
• 5:34
  Speaker 1: asked me, he heard I was a good talker. And
• 5:38
  Speaker 1: when the rich when the liquor store owner, mister mac
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  Speaker 1: Max Licker store in commerin California when I was nine
• 5:43
  Speaker 1: years old going on ten, and I was thinking I
• 5:46
  Speaker 1: was doing research for starting my own business, and I
• 5:47
  Speaker 1: went there to tell him he was selling the wrong
• 5:49
  Speaker 1: kind of candy. After my financial literacy course in elementary school,
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  Speaker 1: I wanted to. I didn't know what the word partner
• 5:56
  Speaker 1: meant back then. I didn't know what the word the
• 5:57
  Speaker 1: phrase joint venture meant. I'm not going to say yes
• 6:00
  Speaker 1: I did, but I knew the intention was that I
• 6:02
  Speaker 1: wanted to. I figured we were better together. He understood
• 6:05
  Speaker 1: how to run a business. He had a business, he
• 6:07
  Speaker 1: had a location, he had the ability to order products.
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  Speaker 1: I was a young person who knew what candy should
• 6:13
  Speaker 1: be purchased, and I knew that my friends were going
• 6:15
  Speaker 1: out of their way to come up to his store
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  Speaker 1: to buy candy they really didn't like or want. But
• 6:18
  Speaker 1: he was the only game in town. And I knew
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  Speaker 1: if we worked together, with my ability to sell, my
• 6:24
  Speaker 1: ability to market, my ability to select the right product,
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  Speaker 1: that I had the right brain, the creativity and intuition,
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  Speaker 1: the field, the texture of the culture. He had, the
• 6:33
  Speaker 1: left brain, the analysts that the analytical the structure, the
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  Speaker 1: business plan, the balance sheet, the location. I figured the
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  Speaker 1: left brain, right brain working together, we would be better together.
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  Speaker 1: I was nine, ten years old. So he just wrote
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  Speaker 1: me off, just dismissed me. But he said, as he
• 6:50
  Speaker 1: dismissed me, look, you're impressive young man. You have good
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  Speaker 1: gift for gab. You talked very well. Let me give
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  Speaker 1: you a job after school selling candy at my candy counter.
• 6:59
  Speaker 1: I said, I don't want a job selling candid your
• 7:01
  Speaker 1: canting count. He said, no, that's the best job in
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  Speaker 1: all of this area content. I'm gonna pay you top dollar.
• 7:07
  Speaker 1: I don't want your job paying top dollar. What do
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  Speaker 1: you want. I want to be a box boy. Excuse me.
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  Speaker 1: I want to be the person who's doing inventory and
• 7:17
  Speaker 1: the cod box, pushing the inventory from the back to
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  Speaker 1: the front. Some people open the cobox and pull the
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  Speaker 1: liquor out, or pull pull the milk out or whatever.
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  Speaker 1: He said, that's the worst job I've got in the
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  Speaker 1: old story. That's the one I want. I didn't want
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  Speaker 1: to be performative. I didn't want to rock the mic.
• 7:30
  Speaker 1: By the way, we need people rocking the mic. Be clear,
• 7:34
  Speaker 1: we need people. I mean this is music, as an example,
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  Speaker 1: is the soul of the world. It's probably the original language. Right.
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  Speaker 1: Sports is something that gives everybody joy. You know, it
• 7:44
  Speaker 1: keeps you from going crazy. So where you're bouncing the
• 7:46
  Speaker 1: basketball or hitting the baseball, or running a football or
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  Speaker 1: rocking the mic, whatever that contract is is making you rich,
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  Speaker 1: I'm all for it. Just understand what it is. And
• 8:00
  Speaker 1: for me, that was not where I wanted to use
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  Speaker 1: my talent anyway. Some of you know my story. I
• 8:04
  Speaker 1: went to go work as a box boy at very
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  Speaker 1: low wages. I opened the box, figured out there was
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  Speaker 1: inventory lists inside, figured out where he was buying his inventory,
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  Speaker 1: figured out the wholesale rate and the retail rate difference
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  Speaker 1: between what he's paying for it what he's sold it for,
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  Speaker 1: and the difference was profit. And I decided I want
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  Speaker 1: to be an owner. I wanted to write the check,
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  Speaker 1: not cash it employee cashing owner writing more risk, more reward.
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  Speaker 1: But I also figured I knew my market. So I
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  Speaker 1: left there, quit there, went to go home, convinced my
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  Speaker 1: mother to loan me a few bucks. She said he's
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  Speaker 1: going to pay it back. Life is tough, but there
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  Speaker 1: was an ultimate capitalist, Winnia Smith, gangster and a love bug.
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  Speaker 1: I then went to smart and final which is where
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  Speaker 1: the envoy said he bought his candy Smart and final
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  Speaker 1: and Irish food store. They were connected, owned by the
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  Speaker 1: same Jewish family who helped me out by the way
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  Speaker 1: back then with this startup business idea, and I opened
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  Speaker 1: up a business in my neighborhood on the way to
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  Speaker 1: school and on a forty dollars investment may three dollars
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  Speaker 1: a week. After several weeks and put the lick sture
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  Speaker 1: of the candy business and became my dream. So I
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  Speaker 1: was on a road to success that would define my life.
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  Speaker 1: And that's who I am today. So let me now,
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  Speaker 1: I've seen riches, I've had contracts, right, and I've experienced wealth.
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  Speaker 1: Those are two different things. Let me, let me, let
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  Speaker 1: me explain the difference. Being rich is a contract temporary, conditional,
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  Speaker 1: often loud, engaged, involved, short term powerful. Think about an
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  Speaker 1: NBA contract, NFL contract, baseball contract. Think about, well, somebody
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  Speaker 1: wins the lottery. Yay, you know it's a contract from
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  Speaker 1: the state, but it's temporary and it's preston. Think if
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  Speaker 1: you're getting if you're getting compensated outsize to your labor
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  Speaker 1: in a short period of time, and getting rich, it's
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  Speaker 1: typically temporary, conditional, and loud, and I'm not judging loud
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  Speaker 1: in this example. Being wealthy is often quiet, built on ownership,
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  Speaker 1: patience and hear this compounding make money during the day.
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  Speaker 1: Thank you Tony Wrestler for this quote. You build wealth
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  Speaker 1: in your sleep. Tony Wrestler is a billionaire businessman who
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  Speaker 1: owns the Atlanta Hawks, principal owner and is chairman of
• 10:41
  Speaker 1: Areas Management, which is I think is about five six
• 10:43
  Speaker 1: hundred billion dollars a lot and is run by my
• 10:46
  Speaker 1: friend Michael Arraghetti. Those two together have built this, along
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  Speaker 1: with others, is bohemoth. So when you've got the power,
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  Speaker 1: you don't need to use it. Real wealth doesn't need
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  Speaker 1: to scream, doesn't need to holler. It is what it is.
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  Speaker 1: Most people performing rich in their twenties are chasing a look,
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  Speaker 1: not building a life, and most people who become wealthy
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  Speaker 1: don't reset point until their fifties. I did an entire
• 11:20
  Speaker 1: podcast on becoming wealthy and when that happens, and that's
• 11:23
  Speaker 1: mid to late fifties. Go back and listen to that podcast,
• 11:27
  Speaker 1: so I go deep on that topic. Everybody wants to
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  Speaker 1: be rich, but very few understand what it means to
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  Speaker 1: be wealthy. Which is a contract. It ends when you
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  Speaker 1: stop showing up. Hello, I'll repeat that, Which is a contract.
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  Speaker 1: It ends when you stop showing up. Wealth keeps paying
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  Speaker 1: you when you don't. I'm gonna repeat that, which is
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  Speaker 1: a contract. It ends when you stop showing up. Wealth,
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  Speaker 1: real wealth keeps paying you when you don't. Income gets
• 12:04
  Speaker 1: you rich. Ownership makes you wealthy. Every billionaire that you've
• 12:11
  Speaker 1: heard of in the music business, in professional sports, in
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  Speaker 1: the arts, Rihanna, Lebron James, I don't know if he's
• 12:21
  Speaker 1: a billionaire yet, but Magic Johnson certainly, certainly, mister Nike,
• 12:30
  Speaker 1: Air Jordan, doctor Dre and his work with the technology company.
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  Speaker 1: All of these folks who have become billionaires did it
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  Speaker 1: from going from rocking to mic effectively owning a piece
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  Speaker 1: of it. They've got they've gone into corporate, they've got
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  Speaker 1: into business to do compounding. They've got a licensing deal
• 12:55
  Speaker 1: or a co branding deal, or they did something that
• 12:58
  Speaker 1: leveraged them beyond their own No one became a billionaire
• 13:01
  Speaker 1: selling tickets to a concert. This is all a framework
• 13:05
  Speaker 1: for a larger conversation that you can really relate to.
• 13:08
  Speaker 1: Just walking you into this pace by peace. So again,
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  Speaker 1: income gets you rich. Ownership makes you wealthy. Only seventy
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  Speaker 1: percent of thirty year olds in America make one hundred
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  Speaker 1: thousand dollars a year or more seven percent. Think about
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  Speaker 1: all the people running around on social media bragging and
• 13:30
  Speaker 1: saying that one hundred thousand dollars is nothing in their
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  Speaker 1: rich and they've got the car that they're probably renting,
• 13:36
  Speaker 1: they got the house they're probably renting for a photo shoot.
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  Speaker 1: They got money that's probably fake. Between the front bill
• 13:43
  Speaker 1: and the back bill. Anybody who's got real wealth is
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  Speaker 1: not fronting like that. They don't need to. Seventy six
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  Speaker 1: percent approximately of all luxury goods, by the way, are
• 13:56
  Speaker 1: purchased by poor and struggling and aspirational middle class people
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  Speaker 1: in the world. Seventy six percent just one percent of
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  Speaker 1: households under thirty one millionaires one percent not black or
• 14:13
  Speaker 1: white or Latino or age all households. Okay, the average
• 14:18
  Speaker 1: age of a US millionaire fifty seven years old, by
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  Speaker 1: the way, around my age, that's about when I was
• 14:29
  Speaker 1: a little bit ahead of that. When I was a
• 14:31
  Speaker 1: millionaire technically well before that, but I got a liquidity moment, right.
• 14:36
  Speaker 1: I did a nine figure deal when I was fifty
• 14:42
  Speaker 1: six ish, fifty five fifty six ish. I was rich
• 14:47
  Speaker 1: for a good period of time. I had cash flow,
• 14:50
  Speaker 1: I had lifestyle, but I didn't have the ability beyond
• 14:55
  Speaker 1: lifestyle to move assets and and do big things. I
• 15:01
  Speaker 1: couldn't just wire right seven figures when I was rich.
• 15:06
  Speaker 1: I'm going to do that. When I was wealthy, couldn't
• 15:08
  Speaker 1: wire six figures to be honest, less, it was on credit,
• 15:13
  Speaker 1: which means it's not your money, so should be inspiring
• 15:26
  Speaker 1: the people that you actually technically get become a millionaire
• 15:31
  Speaker 1: in the third quartile of your life, or if you
• 15:37
  Speaker 1: live a very long life, at the little over the
• 15:41
  Speaker 1: sixty percent mark, right, so you're not too late. We're
• 15:45
  Speaker 1: going to unpack why wealth comes later and how you
• 15:48
  Speaker 1: can start building it right now. Rich looks good on Instagram,
• 15:56
  Speaker 1: but it's often smoking mirrors. That's why the word personality
• 15:59
  Speaker 1: comes from a lot word persona what means to perform.
• 16:02
  Speaker 1: Our personalities often the performance we put on for the world,
• 16:08
  Speaker 1: described in this podcast as high income, flash and lifestyle,
• 16:16
  Speaker 1: but rarely backed by assets. Typically the assets are on
• 16:20
  Speaker 1: people's ass no pun intended. Rich depends on the next
• 16:28
  Speaker 1: check contract or client. Are you starting to get it.
• 16:34
  Speaker 1: You're starting to understand what I'm saying. You're also often
• 16:39
  Speaker 1: cashing somebody else's check, not writing your own, including social
• 16:45
  Speaker 1: media influencers who are cashing a check from social media
• 16:49
  Speaker 1: companies that are paying them for clicks and views, which
• 16:56
  Speaker 1: is why people are making content that is often a lie,
• 17:01
  Speaker 1: just to drag people to their site and hold them
• 17:03
  Speaker 1: there for three minutes so they can get credit for that.
• 17:07
  Speaker 1: So they're telling a lie, promoting a lie in order
• 17:10
  Speaker 1: to live a lie. Only eight percent, only eighteen percent
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  Speaker 1: of Americans earn over one hundred thousand dollars. Eighteen percent,
• 17:21
  Speaker 1: about ten percent of black households. I believe it's households.
• 17:25
  Speaker 1: It's out of my it's off of my head. Black
• 17:28
  Speaker 1: households earn one hundred thousand dollars a year. It's either
• 17:31
  Speaker 1: individuals or households. It's still not. It's not a big number.
• 17:35
  Speaker 1: But you'd see you think of the social media stuff
• 17:37
  Speaker 1: that it is everybody, and it is not. It's not.
• 17:41
  Speaker 1: It's mostly not anybody. In fact, seventy percent of people
• 17:47
  Speaker 1: in this country are living paycheck to paycheck. Half of
• 17:51
  Speaker 1: those making one hundred thousands a year living from paycheck
• 17:53
  Speaker 1: to paycheck. If you're doing that, a quarter of those
• 17:56
  Speaker 1: making two hundred and fifty thousand dollars a year are
• 17:59
  Speaker 1: living from paycheck to paycheck. If you're living in New
• 18:01
  Speaker 1: York City where I am today, one hundred thousand feels
• 18:04
  Speaker 1: like thirty seven thirty nine thousand dollars. So even that
• 18:07
  Speaker 1: is not rich, but it is bigger income than the
• 18:13
  Speaker 1: majority of Americans. So we all need to calm down
• 18:15
  Speaker 1: and stop lying about what we're doing. And I don't
• 18:21
  Speaker 1: want you to feel bad that somehow you're not succeeding.
• 18:23
  Speaker 1: It's just not true. In fact, you deserve a Nobel
• 18:27
  Speaker 1: Peace Prize because you've been doing If you're listening to
• 18:30
  Speaker 1: this podcast, you're probably doing so much but so little
• 18:33
  Speaker 1: for so long. You can almost do anything with nothing,
• 18:35
  Speaker 1: And I commend you. You probably have too much month
• 18:39
  Speaker 1: at the end of your money. A single mother deserves
• 18:42
  Speaker 1: a Nobel Peace Prize raising children and doing all that
• 18:45
  Speaker 1: well working, et cetera. Among people in their twenties, fewer
• 18:49
  Speaker 1: than ten percent earn one hundred thousand dollars a year
• 18:53
  Speaker 1: or more. On social media, over ninety percent of influencers
• 18:58
  Speaker 1: make less than one hundred thousand annually, yet almost project
• 19:02
  Speaker 1: a luxury lifestyle. I'm gonna repeat that. On social media,
• 19:06
  Speaker 1: over ninety percent of influencers make less than one hundred
• 19:10
  Speaker 1: thousand dollars a year, and many of them earn twenty
• 19:12
  Speaker 1: or thirty thousand dollars, And a lot of what you're
• 19:15
  Speaker 1: seeing are literally them renting a life for a day
• 19:18
  Speaker 1: to promote to you as success for a lifetime. Social
• 19:23
  Speaker 1: media has a lot of folks renting the appearance of
• 19:26
  Speaker 1: wealth they don't yet own, pro athletes and entertainers who
• 19:31
  Speaker 1: make millions early but lose it when the contract ends.
• 19:35
  Speaker 1: As an example of not giving the memo in financial
• 19:38
  Speaker 1: literacy and confusing making a living with building a life again,
• 19:43
  Speaker 1: making a living doesn't matter where you're making a living
• 19:45
  Speaker 1: in twenty thousand dollars a year, fifty thousand dollars a year,
• 19:48
  Speaker 1: five hundred thousand dollars a year, five million dollars every year,
• 19:52
  Speaker 1: you can steal. If your alfhaloaks eat your inflows and
• 19:54
  Speaker 1: your overhead will be your downfall, you can still lose
• 19:57
  Speaker 1: it all. Being rich means you make money. Being wealthy
• 20:01
  Speaker 1: means your money makes money. Did you get that one?
• 20:06
  Speaker 1: When you're wealthy, your money makes more money on money
• 20:09
  Speaker 1: than money you can never make on labor. Hello, drop
• 20:13
  Speaker 1: the mic. Wealth is ownership is what happens when you
• 20:17
  Speaker 1: stop working and your money doesn't. This is making smart sexy.
• 20:21
  Speaker 1: By the way, we've been making dumb sexy, but way
• 20:24
  Speaker 1: too long we've dumbed down and celebrated. It is time
• 20:26
  Speaker 1: to make smart sexy again. Here are the three core
• 20:32
  Speaker 1: wealth building vehicles. Please write these down because these are
• 20:36
  Speaker 1: not what I think you've been told. Number One, real estate.
• 20:43
  Speaker 1: It involves appreciation of value in the asset. They're not
• 20:47
  Speaker 1: growing anymore. Land plus rental income if it's an income
• 20:51
  Speaker 1: producing property. But the number one way you do wealth
• 20:53
  Speaker 1: in America is home ownership. Just know that. That's why
• 20:57
  Speaker 1: seventy five percent of my white counterparts own a home,
• 21:00
  Speaker 1: and unfortunately, forty four percent of my black brothers and
• 21:03
  Speaker 1: sisters own a home. In that thirty percent gaps called
• 21:08
  Speaker 1: it a delta. That difference is generational wealth or the
• 21:12
  Speaker 1: lack thereof. Number two. Business ownership is the second way
• 21:17
  Speaker 1: people build wealth, equity, not just income. Before I talked
• 21:22
  Speaker 1: a little bit about that you make money during the day,
• 21:25
  Speaker 1: you build wealth and you sleep. It's not making a
• 21:27
  Speaker 1: living business is that real big step outside of the
• 21:31
  Speaker 1: corporate or structured job environment using a traditional existing business model.
• 21:36
  Speaker 1: I break down the difference between being a business person
• 21:38
  Speaker 1: and an entrepreneur and a hustler and self employed, and
• 21:42
  Speaker 1: I break down all these things the steps of capitalism
• 21:44
  Speaker 1: in another podcast episode. Go back and watch and listen
• 21:47
  Speaker 1: to that number three way to build wealth in America
• 21:53
  Speaker 1: or anyplace else in the world. By the way, investments
• 21:56
  Speaker 1: that compound over time. And no, cryptocurrency is not part
• 22:02
  Speaker 1: of a basic investment portfolio. Cryptocurrency, which you can strike
• 22:09
  Speaker 1: it rich with, is speculation. You can also get rich
• 22:13
  Speaker 1: one to Las Vegas. You can win the lottery. By
• 22:15
  Speaker 1: the way, you can also lose it all. And that
• 22:17
  Speaker 1: is until they regulate crypto and all that stuff get
• 22:20
  Speaker 1: structure around it, and I hope that happens soon. You
• 22:23
  Speaker 1: can make it all, you can lose it all. There's
• 22:25
  Speaker 1: no asset based under cryptocurrency. Okay. The fact that even Bitcoin,
• 22:30
  Speaker 1: it's hype and promotion and everybody's sort of pumping the beat,
• 22:33
  Speaker 1: you know, it is sort of bidding the price up.
• 22:37
  Speaker 1: And theoretically there's a find out find a number of bitcoins.
• 22:40
  Speaker 1: So that actually because of the find out, find out
• 22:42
  Speaker 1: amount of bitcoin that creates scarcity, so supplying the man.
• 22:46
  Speaker 1: So there's some legitimacy there, But blockchain technology undneath that
• 22:50
  Speaker 1: is the real magic. But thousands of cryptocurrencies are gone
• 22:54
  Speaker 1: poof and people lost every time day. So I tell
• 22:56
  Speaker 1: people you want to do cryptocurrency, that's great, just don't
• 22:59
  Speaker 1: use rent money. So you should have a you should
• 23:03
  Speaker 1: have a living budget and investment budget and a flossing budget.
• 23:09
  Speaker 1: If you're in your investment budget, you want to take
• 23:11
  Speaker 1: ten percent and do speculative speculative investments, and you want
• 23:14
  Speaker 1: to do cryptocurrency in that fantastic, knock yourself out. But
• 23:18
  Speaker 1: the traditional investment should be things that you use every
• 23:21
  Speaker 1: day and are not going to go out of vogue,
• 23:22
  Speaker 1: and if the company even goes bankrupt, their assets underneath it,
• 23:26
  Speaker 1: like stocks, I'm not sorry, Like real estate and client
• 23:29
  Speaker 1: lists and brand and you know, cash flows and things
• 23:33
  Speaker 1: like that. So real traditional boring investments. Okay, So three
• 23:38
  Speaker 1: ways that you build wealth. Primary ways real estate, business ownership,
• 23:43
  Speaker 1: traditional investments. You can't be wealthy until your money works
• 23:48
  Speaker 1: harder than you do. You can't be wealthy unless your
• 23:52
  Speaker 1: money works harder than you do. I just said that twice.
• 23:56
  Speaker 1: I like the way it sounded. It was real cool.
• 23:59
  Speaker 1: I just love of truth like that are so simple.
• 24:02
  Speaker 1: It's like boom, right, and you're so smart. That's going
• 24:05
  Speaker 1: to just literally light all the endorphins up in your head.
• 24:08
  Speaker 1: The meeting net worth by age thirty to thirty four,
• 24:13
  Speaker 1: let's just break all this stuff down, is about eighty
• 24:16
  Speaker 1: eight thousand dollars. Okay, these are people who are working
• 24:19
  Speaker 1: and doing things by fifty to fifty four. The median,
• 24:23
  Speaker 1: the median climbs the median net worth. These are, by
• 24:25
  Speaker 1: the way, Caucasian. These are the best numbers you've got, right,
• 24:28
  Speaker 1: So these are not minority wealth. Creation of these are like,
• 24:32
  Speaker 1: you know, the median for the country. But really, in reality,
• 24:36
  Speaker 1: I'm talking about sort of the best example of each
• 24:38
  Speaker 1: of these categories. Thirty to thirty four eighty eight thousand dollars.
• 24:41
  Speaker 1: Fifty to fifty four years of age climbs to two
• 24:44
  Speaker 1: hundred and fifty six thousand dollars. By the way, Blacks
• 24:47
  Speaker 1: are typically ten percent of that number. Latinos not much
• 24:51
  Speaker 1: far ahead of blacks by sixty years plus. Many households
• 24:56
  Speaker 1: cross into millionaire territory if they have a discipline of
• 25:00
  Speaker 1: investigatf you take two hundred dollars a month at age
• 25:03
  Speaker 1: twenty five and invest it in the top rated stocks
• 25:09
  Speaker 1: and just leave it there and let it compound. You'll
• 25:11
  Speaker 1: be worth a million dollars by the age of retirement.
• 25:15
  Speaker 1: Do nothing else. Just do that. Let's serve our patients.
• 25:19
  Speaker 1: The compounding curve takes twenty to thirty years to bend upward.
• 25:24
  Speaker 1: That's what I just told you. Two hundred dollars a month.
• 25:28
  Speaker 1: Wealth is not a spirit, it's compound interest with good behavior. Right,
• 25:35
  Speaker 1: It's time to make smart sexy again. We make it
• 25:37
  Speaker 1: dumb sexy for way too long. We've dumbed down and
• 25:39
  Speaker 1: celebrated it. It's time to make quote my friend Vishal
• 25:42
  Speaker 1: Tdjakes boring sexy again. I want you to get the
• 25:45
  Speaker 1: basics right. I'm not telling you how to do this
• 25:47
  Speaker 1: or that right against crypto. I want you to get
• 25:50
  Speaker 1: the basics right right. I want you to have a
• 25:52
  Speaker 1: life insurance policy and a will, and a home and
• 25:55
  Speaker 1: an income again they man, I just want you to
• 25:57
  Speaker 1: get the basics right and then you can do every
• 25:58
  Speaker 1: whatever you like. This is why wealth normally comes in
• 26:03
  Speaker 1: your fifties. It requires patience and maturity and consistency to
• 26:09
  Speaker 1: turn income into independence. Wealth is what patience looks like
• 26:15
  Speaker 1: on a spreadsheet. Drop the micy wealth is what patience
• 26:20
  Speaker 1: looks like on a spreadsheet. Here's hard data. Eighteen to
• 26:25
  Speaker 1: twenty nine years of age, one percent of households are millionaires.
• 26:29
  Speaker 1: So so much for this live that all these folks
• 26:31
  Speaker 1: run around here with fancy cars and fancy bags and
• 26:36
  Speaker 1: fancy lifestyles and millionaires they're probably just renting all this
• 26:39
  Speaker 1: on high interurs credit cards. Thirty to thirty nine year
• 26:43
  Speaker 1: year olds five percent of millionaires, forty to forty nine
• 26:47
  Speaker 1: years of age fifteen percent of millionaires. This includes, by
• 26:50
  Speaker 1: the way, their primary home. Fifteen to fifty nine years
• 26:53
  Speaker 1: of age. Twenty five percent of everybody are millionaires who
• 27:00
  Speaker 1: But again, as I said earlier, this tends to skew
• 27:03
  Speaker 1: toward to mainstream American numbers. Certainly those are certainly not
• 27:08
  Speaker 1: the numbers of Black America, not even close. The average
• 27:12
  Speaker 1: US millionaire gets there at age fifty seven. It's compounding time,
• 27:19
  Speaker 1: debt payoffs. Kids that grow up not on your debt anymore,
• 27:23
  Speaker 1: on your domining more and wiser spending the millionaire next door,
• 27:28
  Speaker 1: lives modestly, invests, quietly, owns assets that cash flow. In
• 27:36
  Speaker 1: your twenties. You learn in your thirties, you earn in
• 27:41
  Speaker 1: your forties, you build. In your fifties, you harvest. Hello.
• 27:47
  Speaker 1: Let's shift now from chasing rich to building well. I
• 27:52
  Speaker 1: want you to Number one, live below your means. Margin
• 27:57
  Speaker 1: equals freedom. Margin equals for you live below your means.
• 28:01
  Speaker 1: I'd rather underestimate and overperform than overestimate and underperform. Number two.
• 28:07
  Speaker 1: Own something that grows, property, a business, an index fund,
• 28:12
  Speaker 1: a stock index fund. Number three automate wealth, automate savings,
• 28:20
  Speaker 1: automate investing, rent and repeat. Set it and forget about it,
• 28:24
  Speaker 1: going to something else. Do not do day trading doing
• 28:26
  Speaker 1: that stuff. Go on about your life. Set it and
• 28:29
  Speaker 1: let it compound. Don't mess with it. I put the
• 28:33
  Speaker 1: money in an account and the market timing was horrible,
• 28:39
  Speaker 1: lost money and pulled some money out. I tell people
• 28:42
  Speaker 1: don't make investment decisions emotionally, and this was one where
• 28:45
  Speaker 1: I admittedly did it emotionally because this was money I
• 28:48
  Speaker 1: did not want to lose. It was some safety net money.
• 28:50
  Speaker 1: I did this. I covered this in another podcast when
• 28:52
  Speaker 1: I talk about my own mistakes. You know, I can
• 28:54
  Speaker 1: watch that. And I put this money in this account.
• 28:59
  Speaker 1: It dropped in value. It took the money out of
• 29:02
  Speaker 1: the account. IM sorry. I took myself out of the market,
• 29:06
  Speaker 1: the stock market, And later on I asked my asset
• 29:11
  Speaker 1: manager for investments, what would have happened if I left
• 29:14
  Speaker 1: it there? He said, oh, you did have lost more money,
• 29:17
  Speaker 1: And I said, well, what would have happened now? He said, well,
• 29:19
  Speaker 1: you would have made the money you lost back and
• 29:23
  Speaker 1: doubled it. So if I just stayed with a good
• 29:28
  Speaker 1: investment and let it grow, it would have recovered the
• 29:32
  Speaker 1: losses and doubled the return on top of the recovered losses.
• 29:38
  Speaker 1: I'm cool with it because I was not trying to
• 29:40
  Speaker 1: grow that investment. I was trying to preserve capital. But
• 29:44
  Speaker 1: it's just a lesson about the power of markets. Number four,
• 29:59
  Speaker 1: guard your credit at score with your life. It's your
• 30:02
  Speaker 1: economic passport. It's as important as a four year education,
• 30:05
  Speaker 1: in my opinion. Number five, creating multiple streams of income
• 30:10
  Speaker 1: at least one passive level of income. You can do
• 30:14
  Speaker 1: that through annuity payments. You can do that through stocks
• 30:17
  Speaker 1: and pervade by a dip pay dividend is a number
• 30:20
  Speaker 1: of ways you can do that. Six avoid performance pressure,
• 30:26
  Speaker 1: stop competing with illusions. Do one thing this month that
• 30:30
  Speaker 1: earns you money while you're sleep. Just do one thing.
• 30:34
  Speaker 1: Just buy some stock, even if it's small. You got
• 30:37
  Speaker 1: to do even you gotta do fractional shares. Just do
• 30:39
  Speaker 1: something that makes take some action this month. Twenty bucks,
• 30:43
  Speaker 1: two hundred dollars, two thousand dollars, two hundred thousand dollars.
• 30:45
  Speaker 1: I don't care what you do. Just start because it
• 30:48
  Speaker 1: changes once you make that decision. It changes your mindset,
• 30:51
  Speaker 1: It changes the endorphits in your brain. You start shifting
• 30:53
  Speaker 1: the way you see things because of what you see
• 30:56
  Speaker 1: depends on where you sit and whether you believe you can.
• 30:59
  Speaker 1: Whether you believe you can, you're absolutely right. Rich ends
• 31:03
  Speaker 1: when the check stops. Wealth begins when you stop working.
• 31:08
  Speaker 1: Only seven percent of thirty year olds makes six figures,
• 31:12
  Speaker 1: but nearly twenty five percent of people in their fifties
• 31:15
  Speaker 1: or millionaires. Because time, not talk builds wealth. Don't take
• 31:20
  Speaker 1: it into in your twenties, build it so by your
• 31:23
  Speaker 1: eighties or by your fifties. Sorry, you're free. By your eighties,
• 31:27
  Speaker 1: You're sitting on the yacht somewhere completely chilling, trying to
• 31:31
  Speaker 1: hide in your kids, probably babies and your grandchildren. Your
• 31:36
  Speaker 1: kids probably want a loane, but you can by your fifties,
• 31:40
  Speaker 1: you can be literally chilling if you set yourself up
• 31:44
  Speaker 1: the right way and by the way. I feel better
• 31:49
  Speaker 1: now than I did in my twenties. I think I'm
• 31:51
  Speaker 1: in better shape. Like in other words, don't be president
• 31:55
  Speaker 1: where you are, but know the future is when you
• 32:00
  Speaker 1: get there. If you set your life up the right way.
• 32:04
  Speaker 1: Something is like wine, do get better with time. That's
• 32:07
  Speaker 1: been my experience. Commit to long term wealth habits and
• 32:12
  Speaker 1: financial literacy. Financial literacy is the civil rights issue of
• 32:15
  Speaker 1: this generation. When you know better, you do better. In
• 32:17
  Speaker 1: my opinion, I want you to go to Operation Hope
• 32:19
  Speaker 1: and turn financial literacy into a habit by getting a
• 32:22
  Speaker 1: financial coach so everybody has the twos to go from
• 32:27
  Speaker 1: rich to wealthy. I created Operation Hope. I founded it
• 32:29
  Speaker 1: after the Rodney King riots of nineteen ninety two, and
• 32:31
  Speaker 1: we raise money every year so that you can get
• 32:33
  Speaker 1: one thousand to a five thousand dollars annual Hope Program scholarship,
• 32:39
  Speaker 1: so that the coaching and counseling, the private banker we
• 32:41
  Speaker 1: assign you with that gets your credit score up, your
• 32:44
  Speaker 1: debt down, and your savings up. That doesn't cost you
• 32:47
  Speaker 1: a diyme. It costs you your time. I want you
• 32:49
  Speaker 1: to invest your time. Now, let me break some myths
• 32:53
  Speaker 1: here as I close, seventy percent of those who win
• 32:57
  Speaker 1: the lottery bankrupt in five years. No free lunch. About
• 33:02
  Speaker 1: seventy percent of NFL players bankrupt in five years, No
• 33:06
  Speaker 1: free lunch. About sixty five to seventy percent of NBA
• 33:10
  Speaker 1: players bankrupt in five years after retirement, No free lunch.
• 33:16
  Speaker 1: If the lunch is free, it's probably still And in
• 33:20
  Speaker 1: all these instances of the professional athletes, within five years
• 33:23
  Speaker 1: they're have a divorce because the women might have just
• 33:25
  Speaker 1: been there or the men for the money, for the lifestyle,
• 33:29
  Speaker 1: for the floss. And when the lights go down, people
• 33:33
  Speaker 1: leave the performance and go to another party. And now
• 33:37
  Speaker 1: you're just stuck with the bills. Here's another thing about
• 33:40
  Speaker 1: I really need you to understand about riches. So you
• 33:42
  Speaker 1: become rich, You've now engaged in this lifestyle. Right. You
• 33:46
  Speaker 1: got three cars, you've got two houses. You're taking care
• 33:49
  Speaker 1: of your mother, your sister, your cousin, puki them. You
• 33:52
  Speaker 1: got a whole posse of people that you're taking care
• 33:54
  Speaker 1: of you got money flowing coming in. It was it
• 33:57
  Speaker 1: was five thousand a month, and it was ten thousand
• 33:58
  Speaker 1: a month, it was twenty thousand a month. Then you
• 34:01
  Speaker 1: you know, it's fifty thousand a month or one hundred
• 34:02
  Speaker 1: thousand a month. You thought this is never going to end.
• 34:04
  Speaker 1: Two hundred thousand dollars a month. Yeah, my god, I'm
• 34:07
  Speaker 1: making two and a half three million dollars a year.
• 34:10
  Speaker 1: I am rich, but you're not. Well what do I
• 34:13
  Speaker 1: mean by that? Because when that contract ends, when that
• 34:16
  Speaker 1: performance ends, when when you stop being a superstar and
• 34:21
  Speaker 1: the taste of the public changes, or you're you get injured,
• 34:25
  Speaker 1: and that contract ends or is broken. You know in
• 34:27
  Speaker 1: the NFL, great contracts, by the way, great healthcare, great
• 34:33
  Speaker 1: franchise system. But you can have a fifty million dollars contract,
• 34:37
  Speaker 1: but when if you break your leg, they can what
• 34:40
  Speaker 1: you get is a signing bonus and when they pay
• 34:42
  Speaker 1: you over to that point, you don't get the rest
• 34:43
  Speaker 1: of the money unless you negotiate it. That's financial literacy,
• 34:46
  Speaker 1: by the way. So that means that now the money
• 34:50
  Speaker 1: has stopped. Cash flow, cash flow making a living. See people,
• 34:55
  Speaker 1: if you pay attention, it's right there in front of you,
• 34:57
  Speaker 1: making a living through cash flow income contract riches. Once
• 35:04
  Speaker 1: your your your cash flow ends and the bills continue,
• 35:09
  Speaker 1: and you've got a monthly outflow of twenty thousand dollars
• 35:15
  Speaker 1: a month based on thirty thousand dollars of income, and
• 35:19
  Speaker 1: you've been living basically in coords with your lifestyle level
• 35:23
  Speaker 1: and your income level. Where your outflow sees your inflow,
• 35:25
  Speaker 1: your overhead to be your downcome, your outcome. If your
• 35:28
  Speaker 1: outflow exees your inflow, then your overhead will be your downfall.
• 35:33
  Speaker 1: If you're making one hundred thousand dollars a month and
• 35:36
  Speaker 1: you're spending eighty thousands a month, and you never pay taxes,
• 35:40
  Speaker 1: so that's a whole another problem. But then this check
• 35:43
  Speaker 1: stop by two, three, four months of you making, of
• 35:46
  Speaker 1: you having eighty thousand dollars a month of outflow, you're broke.
• 35:49
  Speaker 1: Making one hundred bucks a month with an eighty dollars outflow.
• 35:54
  Speaker 1: You're broke making one hundred thousand a month with an
• 35:56
  Speaker 1: eighty thousand dollars outflow. You're just more broke, You're more
• 35:59
  Speaker 1: painfully broke. You make a million dollars a month, a
• 36:02
  Speaker 1: million dollars a year, but if you're spending seven hundred
• 36:07
  Speaker 1: thousand dollars eight hundred thousand dollars nine thousand dollars a year,
• 36:10
  Speaker 1: sometimes more with credit cards and the income stops because
• 36:14
  Speaker 1: it rich was a contract. How long does it take
• 36:17
  Speaker 1: for all the bill and the lifestyle to drain every
• 36:20
  Speaker 1: dime you have? And then where are your so called friends? Hello?
• 36:25
  Speaker 1: Can I get an amen? Is this ringing true? Rich
• 36:28
  Speaker 1: people make money, well, other people make systems. I am
• 36:32
  Speaker 1: a plumber. I'm an economic plumber for the underserved, trying
• 36:35
  Speaker 1: to help you create a system for your life. If
• 36:39
  Speaker 1: your money stops you when you stop, you're not wealthy
• 36:42
  Speaker 1: yet only one percent of people under thirty millionaires's that's
• 36:48
  Speaker 1: the best number we have for everybody, including mostly mainstream families.
• 36:53
  Speaker 1: Wealth is a long game. Well, this is what patient
• 36:56
  Speaker 1: looks like on a spreadsheet? Wells is what patience looks
• 37:01
  Speaker 1: like on a spreadsheet? I'm saying at another time, just
• 37:04
  Speaker 1: so you're drilling into your head, the real flex isn't luxury.
• 37:08
  Speaker 1: It's freedom, and all money is its freedom. It just
• 37:11
  Speaker 1: might be the only freedom. My friend, my friend, it
• 37:16
  Speaker 1: was the CEO of Key Bank, Chris Gorman told me
• 37:19
  Speaker 1: this one of our partners at Operational, It's entirely possible.
• 37:25
  Speaker 1: The only true freedom is financial freedom, because every other
• 37:27
  Speaker 1: freedom can be taken away from you. Think about that.
• 37:31
  Speaker 1: Political freedom, religious freedom, societal freedom is going to be
• 37:34
  Speaker 1: taken away from you. But unless you screw it up,
• 37:37
  Speaker 1: the financial freedom you've earned allows you to be free
• 37:40
  Speaker 1: for life. So I hope I have unpacked this sufficiently
• 37:47
  Speaker 1: to give you a foundation of this core principle that
• 37:52
  Speaker 1: rich is a contract. It's flashy, it's loud, it's temporary.
• 38:00
  Speaker 1: You've got to find a way to take that moment
• 38:03
  Speaker 1: and make it magic and turn it into a memory
• 38:06
  Speaker 1: that lasts a lifetime called compounding interests. You got to
• 38:09
  Speaker 1: find a way to take that contract and turn it
• 38:13
  Speaker 1: into true wealth creation. That means living under your means
• 38:17
  Speaker 1: and investing in things that make money when you sleep.
• 38:21
  Speaker 1: Warren Buffett, the famed investor. He's famous for saying that
• 38:25
  Speaker 1: his secretary pays more in taxes than he does. I've
• 38:28
  Speaker 1: done a whole thing on taxes. Go back and watch
• 38:30
  Speaker 1: that or listen to that podcast. Well, he's right because
• 38:34
  Speaker 1: his secretary is a W two employee employee of his
• 38:39
  Speaker 1: and W two employees pay the highest rate natural rate
• 38:44
  Speaker 1: on taxes. Warren Buffett does not take my guess is
• 38:49
  Speaker 1: a salary, so he would Why would he pay taxes?
• 38:53
  Speaker 1: He does not earn W two salary income. He does
• 38:59
  Speaker 1: not earn inme tied to riches. He earns his income
• 39:05
  Speaker 1: the ability to live based on passive income from his investments,
• 39:10
  Speaker 1: maybe even loans against his investments. That's the whole other
• 39:13
  Speaker 1: thing I cover in another podcast. But when he sells
• 39:17
  Speaker 1: an investment every few years, he pays the smallest tax rate,
• 39:22
  Speaker 1: which is a capital gains tax of about twenty percent
• 39:25
  Speaker 1: in comparison to thirty forty to fifty percent of folks
• 39:29
  Speaker 1: who have W two or ten ninety nine income. You
• 39:34
  Speaker 1: want to write the check, you want to cash it.
• 39:37
  Speaker 1: I suggest you use cashing a check as a vehicle
• 39:41
  Speaker 1: to get him to a point where you can write
• 39:42
  Speaker 1: some or better, Yet, somebody's writing you some based on
• 39:47
  Speaker 1: non labor. Again, money makes more money on money than
• 39:51
  Speaker 1: money could ever make on labor. All right, let me
• 39:53
  Speaker 1: know what you thinking about this podcast, let me know
• 39:55
  Speaker 1: what else you wanted me to cover. I want to
• 39:58
  Speaker 1: thank you for continuing to make the podcast high performing
• 40:03
  Speaker 1: here and around the world. On entrepreneurship and business. Tell
• 40:05
  Speaker 1: all your friends to follow the money and wealth. To
• 40:08
  Speaker 1: go to Operation Hope for coaching and counseling. To get
• 40:10
  Speaker 1: the book Financial Literacy for All. And let's turn this
• 40:12
  Speaker 1: into the silver rights movement, from civil rights to silver rights,
• 40:16
  Speaker 1: from the streets to the suites. It's John O'Brien. I'm
• 40:19
  Speaker 1: Out Money and Wealth with John O'Brien is a production
• 40:36
  Speaker 1: of the Black Effect Podcast Network. For more podcasts from
• 40:40
  Speaker 1: the Black Effect Podcast Network, visit the iHeartRadio app, Apple Podcasts,
• 40:44
  Speaker 1: or wherever you listen to your favorite shows.