Latest / Masterminds Podcast / The Money Rules Every African Must Know: Adnan Saani - Masterminds Podcast EP3

Transcript

The Money Rules Every African Must Know: Adnan Saani - Masterminds Podcast EP3 · Masterminds Podcast

0:00
SPEAKER_02: What mistakes do you think most people are making when it comes to money?
0:04
SPEAKER_02: Like the general things that they're getting around?
0:06
SPEAKER_01: A lot of people don't understand that money is a tool.
0:10
SPEAKER_01: You don't have to see money as evil.
0:12
SPEAKER_01: So if you look at money making as something evil, then it means that it's a future that you don't see for yourself.
0:18
SPEAKER_01: Exactly.
0:18
SPEAKER_01: There's a book called The Science of Getting Rich that says that for people to become rich, they have to obsess with where they are going to.
0:29
SPEAKER_01: What is financial literacy?
0:31
SPEAKER_01: It's too complicated for the layman to forget everything and look at your ego.
0:36
SPEAKER_01: Getting rich starts from the very moment where your income is equal to your expenses.
0:43
SPEAKER_02: I read that about 85% of the people who get either inheritance or two lose everything.
0:50
SPEAKER_01: They lose it.
0:50
SPEAKER_02: And that's because they don't put it in anything secure.
0:53
SPEAKER_01: Secure.
0:53
SPEAKER_01: The game of security.
0:54
SPEAKER_01: Biggest mistakes people make when they invest money is uh investing when you understand investment is the ultimate skill in money making.
1:05
SPEAKER_02: Holding 2000 CDs.
1:07
SPEAKER_02: When you start a business, what business can I start?
1:10
SPEAKER_01: Every single business that we can think of.
1:13
SPEAKER_01: Somebody somewhere you know is making so much money doing it.
1:17
SPEAKER_01: You should invest in your knowledge.
1:18
SPEAKER_01: You should probably join my Airbnb school.
1:23
SPEAKER_02: Welcome to the Masterminds Podcast, the transformational journey that sharpens your most powerful tool, your mind.
1:30
SPEAKER_02: My name is Richie Mensa, and I'm going to be your tour guide on this amazing path.
1:36
SPEAKER_02: So our aim here every single week is to find a way to take you closer to becoming the mastermind you deserve to be.
1:45
SPEAKER_02: Now, everywhere on the internet, everybody's always talking about making more money, you know, financial literacy, multiple sources of income, and this and that and that, but most of them don't know what they are talking about.
1:59
SPEAKER_02: However, I know that you want the real way to master your finances, to earn true financial literacy.
2:06
SPEAKER_02: So I needed to bring a man who I really, really respect.
2:09
SPEAKER_02: I listen to what he says all the time, and I'm like, this guy knows what he's talking about.
2:14
SPEAKER_02: So please help me welcome and say hi to Adnan Sani.
2:18
SPEAKER_01: How are you doing, bro?
2:19
SPEAKER_01: Yes, I'm good.
2:20
SPEAKER_01: How about you?
2:21
SPEAKER_02: You speak so much sense.
2:22
SPEAKER_02: So thank you.
2:24
SPEAKER_01: I try.
2:25
SPEAKER_02: And I like how you talk about money with no nonsense.
2:29
SPEAKER_02: Like you're straightforward, let people understand.
2:32
SPEAKER_03: Exactly.
2:33
SPEAKER_03: Exactly.
2:33
SPEAKER_02: So, first of all, what got you in the business of sharing your financial knowledge?
2:39
SPEAKER_01: So uh this is something that I started in 2017.
2:43
SPEAKER_01: Okay.
2:44
SPEAKER_01: I, of course, my business journey, I've started, I started business doing a lot of business, and I got in debt.
2:49
SPEAKER_01: Okay.
2:49
SPEAKER_01: So when I was recovering, I started reading books.
2:52
SPEAKER_01: So it got to a time that I started to really, you know, self-inspire.
2:56
SPEAKER_01: So I made a video, I was seated, I was telling myself that I was going to become really rich.
3:02
SPEAKER_01: So I got to, you know, I started learning about financial literacy and everything.
3:05
SPEAKER_01: And I got to a point that I said, okay, I'm actually going to teach this.
3:09
SPEAKER_01: This is something that I want to learn about money, everything about money, so that I could teach other people.
3:15
SPEAKER_01: Okay.
3:15
SPEAKER_01: So that was when I, you know, started my journey of financial literacy.
3:19
SPEAKER_02: So what was your like wake-up call?
3:21
SPEAKER_02: What was that one moment where things flipped and you said, I have to, you know, become a master at this?
3:29
SPEAKER_01: So for me, it was the debt.
3:31
SPEAKER_01: Okay.
3:31
SPEAKER_01: The fact that I was, you know, I was$100,000 in debt.
3:34
SPEAKER_02: That's not a small debt.
3:36
SPEAKER_01: Exactly, because I was a student.
3:37
SPEAKER_01: I started a loans business.
3:39
SPEAKER_01: I started taking money from other students.
3:41
SPEAKER_01: Okay.
3:41
SPEAKER_01: And I was giving to other students.
3:43
SPEAKER_01: So now what I the problem that I had was that I would take money from people, give to other people, they don't pay me back.
3:49
SPEAKER_01: So in the end, I needed to pay these people back.
3:52
SPEAKER_01: So I was in debt.
3:52
SPEAKER_01: I needed to come out somehow.
3:54
SPEAKER_01: Right?
3:55
SPEAKER_01: So it was that moment that I knew that I needed to find a way to start learning about money.
4:00
SPEAKER_02: So, but why do you think so many very smart people struggle with money?
4:06
SPEAKER_01: So the the the thing is that a lot of people fail to learn because as human beings, we have to always learn.
4:14
SPEAKER_01: It means that it's it's a process that never stops.
4:17
SPEAKER_01: All the time you have to keep learning about money, learning about financial literacy, because uh, if you uh just decide that everything that you have is okay, you are never going to go ahead.
4:29
SPEAKER_01: You have to keep reading books, and you know, I think that because people have already gone through this journey, they have learned, they have failed in business, and it is something that we can you know take inspiration.
4:39
SPEAKER_01: We can tap from them.
4:40
SPEAKER_01: So it is always good to continue learning about money.
4:43
SPEAKER_02: I always say you only learn from experiences.
4:46
SPEAKER_02: You either learn from your own experience when you fail, or you learn from someone else's experience from their failures.
4:53
SPEAKER_01: The experience.
4:53
SPEAKER_01: And that is basically what books are.
4:55
SPEAKER_01: Yeah, people have gone through the journey.
4:57
SPEAKER_01: Thank you.
4:57
SPEAKER_01: They have had all the difficulties for pretty much every business that you are going to start, somebody else has already done that business and has failed.
5:05
SPEAKER_01: So it's always very easy to, you know, copy what already works and then to always have to reinvent the wheel every single time.
5:12
SPEAKER_02: So, right now, take me as your student.
5:16
SPEAKER_02: What's the first thing you feel someone needs to understand on their path to financial literacy?
5:22
SPEAKER_01: So, one thing that you need to understand is that it's a journey.
5:25
SPEAKER_01: Okay, it's not something that is going to happen overnight.
5:28
SPEAKER_01: Overnight the average millionaire is 49 years old.
5:30
SPEAKER_01: So if you are less than 49 years old and you're not a millionaire yet, it means that there's still a journey.
5:35
SPEAKER_01: Yeah.
5:36
SPEAKER_01: So it there's a path that you have to follow.
5:38
SPEAKER_01: It is a process that you have to take.
5:40
SPEAKER_01: So I I always tell people that I actually wrote a book about it.
5:43
SPEAKER_01: I said, if you have nothing, you have to find a job.
5:47
SPEAKER_01: Okay.
5:47
SPEAKER_01: Because it's very hard to overnight, you just uh you know, start a business and it blows up.
5:51
SPEAKER_01: Some people are lucky, they start a business and it does really well.
5:55
SPEAKER_01: But for most people, you have to start somewhere.
5:58
SPEAKER_01: That means that you have to get a job, study, know the ins and outs of you know, see what other people are doing, try to get some savings on the side, then you can start something else for yourself.
6:10
SPEAKER_01: Okay.
6:10
SPEAKER_01: So, but if you already have a job, then you have to think of starting a business.
6:14
SPEAKER_01: If you already have a business, then you can think of automating that business.
6:18
SPEAKER_01: And that means that be in a position where you are able to make the business function on its own without you.
6:24
SPEAKER_01: Yeah, if you are somebody who's already automated your business, then you have to learn about investing.
6:29
SPEAKER_01: Because naturally, if you have a business that is bringing money on its own, you have to learn to invest this money, right?
6:36
SPEAKER_01: Or you have to learn to create a personal brand, which I believe this is what we are doing right now.
6:40
SPEAKER_01: Oh, hello.
6:41
SPEAKER_01: So depending on where you find yourself.
6:43
SPEAKER_01: So I've written a book about this called The Web GPS, where I say, depending on where you find yourself, because the the journey is not the same for everyone.
6:50
SPEAKER_01: Yeah.
6:50
SPEAKER_01: So for me to be able to advise you, I need to know exactly where you find yourself.
6:54
SPEAKER_01: Are you somebody who has like you have absolutely nothing?
6:57
SPEAKER_01: I could tell you to go start a business, but it's going to be hard.
7:00
SPEAKER_01: First of all, you need capital, you need experience and everything.
7:03
SPEAKER_01: So you have to start somewhere.
7:04
SPEAKER_01: That is why I don't say a lot of people say you don't need to get a job.
7:08
SPEAKER_01: I believe that a job is important, but it's like a stepping stone.
7:12
SPEAKER_01: It's a place that you start, but you don't stay there.
7:15
SPEAKER_06: Yeah.
7:16
SPEAKER_01: You understand?
7:16
SPEAKER_01: You are learning on the job, you are going forward, and you know, eventually.
7:20
SPEAKER_01: Because the ultimate that you should get to is to be in a place in a place where you are an investor.
7:25
SPEAKER_02: Okay.
7:26
SPEAKER_02: Okay.
7:27
SPEAKER_02: So wow, that's so much knowledge in one person.
7:30
SPEAKER_02: That's why they call you Dangoti.
7:34
SPEAKER_02: Okay, so me, I'm a strong believer in mindsets.
7:37
SPEAKER_02: I believe anything somebody's not doing well in, it's because they don't have the right mindset.
7:42
SPEAKER_02: Yes.
7:43
SPEAKER_02: So, what mindset shape do you think someone who's suffering financially needs, first of all?
7:49
SPEAKER_01: So, first of all, you don't have to see money as evil.
7:53
SPEAKER_01: A lot of people, they are so poor, but every single time they see somebody making money or somebody doing well for themselves, they say, oh, the person has gone to look for some sort of medicine, yeah, a magic juju, or they they see that maybe the person has done something criminal, right?
8:08
SPEAKER_01: And individual, individuals can actually sit down and work their way through and be able to make it in life.
8:15
SPEAKER_01: Yeah.
8:16
SPEAKER_01: So if you look at money making as something evil, then it means that it's a future that you don't see for yourself.
8:22
SPEAKER_01: Exactly.
8:22
SPEAKER_02: Because you can't rationalize with your morals how you will do that evil thing to make money too.
8:28
SPEAKER_01: Exactly.
8:28
SPEAKER_01: So it means that even when you get to a point where you are getting close to making money, you pull yourself back.
8:33
SPEAKER_01: Yeah because you feel like you are getting to that place where it is only evil people.
8:38
SPEAKER_01: So, first of all, and money making starts from the mindset.
8:41
SPEAKER_01: That is why a lot of motivational speakers, a lot of teachers, a lot of people speak about mindset because that is where it starts.
8:47
SPEAKER_01: Yeah, right?
8:48
SPEAKER_01: For you to even have the idea of starting a business, there's a day that it came, it dawned on you that okay, maybe I need to make more money.
8:56
SPEAKER_01: You just don't wake up in the middle of it.
8:58
SPEAKER_01: It means that you have to think about it somewhere.
9:00
SPEAKER_01: So all of that starts in the mind before it's actually materialized.
9:05
SPEAKER_01: So the mindset that can keep you uh behind is if you think that the journey is evil.
9:11
SPEAKER_04: That's true, right?
9:12
SPEAKER_01: So you have to you have to have that mindset where most of the time you are thinking of where you want to get to.
9:19
SPEAKER_01: Okay.
9:20
SPEAKER_01: That it's a positive place.
9:22
SPEAKER_01: Don't feel sorry for yourself and always think there's poverty, poverty, poverty, and all you know, always feeling sorry for yourself.
9:28
SPEAKER_01: Hassle mentality.
9:29
SPEAKER_01: Exactly.
9:30
SPEAKER_01: There's uh a book called The Science of Uh Getting Rich that says that in fact, for people to become rich, they have to obsess with where they are going to and not where they are.
9:42
SPEAKER_01: So if you are thinking that that you want to become a rich person, you have to be thinking of the journey, where you want to be, instead of feeling sorry all the time saying I'm poor, you are talking of poverty, because that's what you are attracting in your life.
9:54
SPEAKER_01: So people have to write down their goals, set the destination, the destination, obsessed with the destination instead of that's why in 2017, when I made the the video that went viral, I kept saying that I am going to become a millionaire, I am going to learn how to make money, and I'm going to teach other people.
10:11
SPEAKER_01: Yeah.
10:11
SPEAKER_01: Today that is the reality that I'm living.
10:13
SPEAKER_01: Of course, I've not arrived at my destination, but I'm with you.
10:16
SPEAKER_02: But you are on the journey.
10:17
SPEAKER_02: I like that.
10:18
SPEAKER_02: Exactly.
10:18
SPEAKER_02: And you are doing very well on the journey.
10:20
SPEAKER_02: Thank you.
10:20
SPEAKER_02: When we finish the podcast, you give me a small loan, I'll give my account number.
10:25
SPEAKER_02: But let me ask this to a layman.
10:28
SPEAKER_02: Yeah, what is financial literacy?
10:31
SPEAKER_01: Okay, so financial literacy, as described in the dictionary and everything, ability to interpret financial, it's too complicated for the layman.
10:39
SPEAKER_01: So the way I always try to get people to understand it very easily is that I tell you to forget everything and look at your income, right?
10:47
SPEAKER_01: Because getting rich starts from the moment from the very moment where your income is equal to your expenses.
10:56
SPEAKER_01: It is from that moment that getting rich starts.
10:58
SPEAKER_02: Okay.
10:59
SPEAKER_01: Because before then, if you are still in a place where you have money problems, then you cannot be financially uh free.
11:06
SPEAKER_01: So financial freedom starts from the place where your income has just exceeded your expenses.
11:15
SPEAKER_01: Okay.
11:16
SPEAKER_01: So I always tell people to look at the aspect of income.
11:19
SPEAKER_01: Forget the definition of financial literacy, it's going to be become very difficult for you.
11:23
SPEAKER_01: Track one thing.
11:24
SPEAKER_01: Look at your income.
11:25
SPEAKER_01: That is the difference between the money that comes in your pocket and the money that goes out.
11:31
SPEAKER_01: Okay.
11:31
SPEAKER_01: And I tell people you have to write this down.
11:34
SPEAKER_01: That means I take a book or now a computer, you know, create something where everything that gets out of your pocket every single month you put at one side.
11:43
SPEAKER_01: Everything that comes in your pocket every single month you put at one side.
11:46
SPEAKER_01: Your aim is to increase this and decrease this.
11:50
SPEAKER_01: So when it gets to a point, financial literacy starts from the point where it's like if your expenses are more than your your your income, it means it gets to a point where it becomes the same.
12:02
SPEAKER_01: From that point, that's it.
12:04
SPEAKER_01: So financial literacy would be to be able to learn how to track your income.
12:09
SPEAKER_01: Because once you understand that part of it, every single thing would follow.
12:13
SPEAKER_01: Because eventually, if you start making more money than you spend, then suddenly you are thinking of saving money.
12:19
SPEAKER_01: What should I do with that money?
12:20
SPEAKER_01: Then you save money, and eventually you find that saving money is going to keep you not so rich.
12:25
SPEAKER_01: Yeah.
12:25
SPEAKER_01: Because you cannot become rich just by saving.
12:28
SPEAKER_01: Then you think of investing money.
12:31
SPEAKER_01: Right?
12:32
SPEAKER_01: So you think of investing money, and when you think of investing money, you ask yourself, what are the differences that I can invest?
12:40
SPEAKER_01: Then now you begin to study all kinds of investment vehicles, and you see some of them make more than others, the risk involved and everything.
12:48
SPEAKER_01: So that is where it starts.
12:49
SPEAKER_01: From you trying to understand your income.
12:52
SPEAKER_02: Okay, okay.
12:53
SPEAKER_02: So if you look at Africa or Ghana, right, what mistakes do you think most people are making when it comes to money?
13:01
SPEAKER_02: Like the general things that they're getting wrong.
13:04
SPEAKER_01: So the general problem, the general mistakes people make when it comes to money is uh first of all, there's a lot of problems.
13:12
SPEAKER_01: A lot of people.
13:13
SPEAKER_01: So it's like if we start counting, then we are not going to uh you know, okay.
13:18
SPEAKER_01: But a lot of people don't understand that money is a tool, right?
13:24
SPEAKER_01: It's not the end goal, it's not the end goal.
13:26
SPEAKER_01: So money is a tool.
13:27
SPEAKER_01: You are trying to find money for it to send it on a you know to do on an errand.
13:33
SPEAKER_01: So every single time that you make money, the question you have to ask is that can I minimum what is the minimum of my wants that I can satisfy, and the rest of it should go out to bring more money.
13:46
SPEAKER_01: Every single CD dollar, whatever comes in your pocket has to be sent on an errand.
13:51
SPEAKER_01: And as human beings, we have wants, we have things that we want all the time.
13:57
SPEAKER_01: But most of the things that we want, most of the time, some of them we want them out of pain, and some of them it's just sheer luxury.
14:05
SPEAKER_01: So you as the individual, you have to understand what are the things that I want in my life that I want from a place of pain.
14:12
SPEAKER_01: A place of pain would be to say maybe you are sick, maybe you you can't you don't have money to buy food, you know, those things that if you don't have, it's like you have to cry.
14:21
SPEAKER_01: Yeah, but most of the things you have to upgrade your phone, you need to upgrade, you know, your car, you need to upgrade all of those things.
14:27
SPEAKER_01: They are simple luxuries.
14:29
SPEAKER_01: Yeah, so a lot of people need to understand that when money comes in, when you use it to solve the pain, the rest of it to should go to bring in more money.
14:38
SPEAKER_01: Because that is the point of money.
14:40
SPEAKER_01: Money is not something that you you know just get and then you spend it and it's done.
14:45
SPEAKER_01: Let it go and bring you more money.
14:47
SPEAKER_01: Because physically, uh, there's only a limit to the energy that you can put to find more money.
14:54
SPEAKER_01: But uh when it comes to money finding money for you, there's no limit.
14:59
SPEAKER_01: Okay, it means that money doesn't know when to stop.
15:02
SPEAKER_01: If you invest money, it works with time, it just keeps going.
15:06
SPEAKER_01: But you as a as a human being, it gets to a point that you are weak, you know, you are retirement, you can't go any further.
15:11
SPEAKER_01: Yeah, but if it is money looking for money for you, it is unlimited.
15:17
SPEAKER_01: You know, interesting, it keeps going.
15:20
SPEAKER_02: So, okay, so right now you've been you've someone has brought somebody to you as a student.
15:26
SPEAKER_02: Take me, I'm your student now.
15:28
SPEAKER_02: What are some of the first foundations of personal like finance that you think I need to understand fully to be able to grow it?
15:37
SPEAKER_02: So, right now I've been able to track my money.
15:39
SPEAKER_02: I know, okay, my income has reached my expenses, you know, maybe it surpassed it just a little bit.
15:44
SPEAKER_02: What are some of the pillars I need to know to now grow my money?
15:48
SPEAKER_01: So, first of all, anybody who comes if the person is a new person, I'll just tell the first of all to read rich dad, poor dad.
15:53
SPEAKER_01: Okay.
15:54
SPEAKER_01: So that they can get the foundation.
15:56
SPEAKER_01: Because for me, that was the thing that opened my eyes.
15:58
SPEAKER_01: That was the very thing that when I read it made me understand that world of money making.
16:04
SPEAKER_01: So they need to read that.
16:06
SPEAKER_01: That's very good.
16:07
SPEAKER_02: My fight I have with you is actually from Rich Dad, Poor Dad.
16:09
SPEAKER_02: Oh, nice.
16:10
SPEAKER_02: We'll discuss it later.
16:11
SPEAKER_01: Okay.
16:12
SPEAKER_01: That's that's nice.
16:13
SPEAKER_01: So, yeah, they have to read Rich Dad, Poor Dad.
16:16
SPEAKER_01: I it's a book that I recommend.
16:17
SPEAKER_01: Yeah, it is true that and I suspect I don't agree with all the principles.
16:22
SPEAKER_01: It's not that I don't agree with all the principles.
16:24
SPEAKER_01: In fact, I agree with them so much that I have seen that it doesn't work in my reality, right?
16:30
SPEAKER_01: But this is a book that it is better to read that book than to not read it at all.
16:34
SPEAKER_01: It's one of the most powerful books I ever had.
16:36
SPEAKER_01: Powerful books.
16:36
SPEAKER_01: Yeah, that was, I didn't actually even know there were books about money until I read that book and I was okay.
16:42
SPEAKER_01: So this is the world of yeah.
16:43
SPEAKER_01: So I even became very ridiculous when I read it.
16:46
SPEAKER_01: I remember my elder brother was one day making fun of me.
16:49
SPEAKER_01: He says, if you ask Adnan for a spoon, he will tell you, okay, I'll give it to you how can you how much can you make me every single month?
16:55
SPEAKER_01: Because I understood that everything I did needed to bring me money.
17:00
SPEAKER_01: Yeah.
17:00
SPEAKER_01: So if somebody came to ask me for something, I said, okay, will it be able to bring me money every single month?
17:06
SPEAKER_01: So that is very important to fix their mindset.
17:08
SPEAKER_01: It's a couple of books, it's a couple of books that you need to Okay.
17:11
SPEAKER_02: So let's take Rich Dad Poor Dad.
17:13
SPEAKER_02: One of the things that he always talks about is like his cash flow.
17:17
SPEAKER_02: Yes.
17:18
SPEAKER_02: Where he always breaks down the quadrants and he talks about income, expenditure, assets, liabilities.
17:24
SPEAKER_03: Yes.
17:25
SPEAKER_02: Everybody in the world who can speak English and calculate five plus five understands income expenses.
17:32
SPEAKER_03: Yes.
17:33
SPEAKER_02: Now let's talk about assets and liabilities.
17:35
SPEAKER_02: I think that's what a lot of people get wrong.
17:38
SPEAKER_02: Can you explain it for people?
17:39
SPEAKER_01: Okay.
17:39
SPEAKER_01: So listen, when it comes to assets and liabilities, assets and liabilities.
17:45
SPEAKER_01: So there is Robert Kiyosaki's definition of it, and there's the dictionary definition of it.
17:51
SPEAKER_01: Okay.
17:51
SPEAKER_01: What a lot of people don't realize is that the definition that Robert Kiyosaki gave was his definition of assets and liabilities.
18:00
SPEAKER_01: And he simplified assets and liabilities and made it almost look like income and expenses.
18:07
SPEAKER_01: He made it look like that.
18:09
SPEAKER_01: But it was very intelligent of him.
18:12
SPEAKER_01: Because the fact that he simplified it that way allowed all of us to have a chance of understanding financial literacy.
18:19
SPEAKER_01: Yes.
18:19
SPEAKER_01: It was better that he did that if he didn't do that at all.
18:23
SPEAKER_01: But even the critic, like the criticism that very book has is because it has oversimplified assets and liabilities.
18:32
SPEAKER_01: So we have to, for us to even have a conversation around that book, it means that we have to step away from the meaning, the true meaning, and then go into his meaning.
18:41
SPEAKER_01: Yes.
18:41
SPEAKER_01: Because if you are going to follow that, the true meaning of asset and liability, then a house is an asset.
18:46
SPEAKER_01: Anywhere in the in the dictionary.
18:48
SPEAKER_02: Whatever type of house is an asset.
18:50
SPEAKER_02: A car is an asset.
18:51
SPEAKER_02: A car, everything is an asset.
18:52
SPEAKER_02: My phone is an asset.
18:53
SPEAKER_01: Everything is an asset.
18:54
SPEAKER_01: If you ask an accountant, he will tell you your house is an asset.
18:57
SPEAKER_01: So with that one, they will even agree with me.
19:00
SPEAKER_01: But I'm saying that even when we go to Robert Kiyosaki's world, where his definition of assets is every single thing that brings money in your pocket and liability as everything that takes money out of your pocket, we have to understand why he's saying that.
19:17
SPEAKER_01: The point of it, of his saying that, is so that you can get a lot of assets and can get rid of a lot of liability.
19:23
SPEAKER_01: When you do that, what does it do?
19:25
SPEAKER_01: It increases your income.
19:26
SPEAKER_01: That means the difference goes up.
19:29
SPEAKER_01: That is why he said that.
19:31
SPEAKER_01: Assets, bring money in your pockets, liabilities take money out.
19:35
SPEAKER_01: So that means that if somebody, something brought 20 CDs in my packets and took out 10 CDs, okay, let me asset.
19:42
SPEAKER_01: So it brought in 20 CDs and took out 10 CDs, the difference would be 10 CDs, right?
19:47
SPEAKER_01: Yeah.
19:48
SPEAKER_01: If I got something else to add 10 CDs, the difference would be 20 CDs.
19:51
SPEAKER_01: It means that the more I add assets, the more the difference increases.
19:56
SPEAKER_01: Yes.
19:56
SPEAKER_01: So more emphasis has to be placed on the difference than the act in itself.
20:05
SPEAKER_01: So I know, and I suspect this is what you don't agree with me that a house is a liability.
20:09
SPEAKER_01: Is that true?
20:09
SPEAKER_01: Oh no, no, no, I agree with you.
20:11
SPEAKER_01: No, no, no, that's not true.
20:12
SPEAKER_01: Because most people say your house is a liability.
20:14
SPEAKER_01: I don't agree with that because the difference it depends on what oh, so you say a house is not a liability.
20:19
SPEAKER_01: A house is not a liability.
20:20
SPEAKER_02: That's what I don't agree with.
20:21
SPEAKER_02: Yes, yes.
20:21
SPEAKER_02: Right.
20:22
SPEAKER_01: So that's why I said so.
20:23
SPEAKER_01: I said a house is not a liability.
20:25
SPEAKER_01: A house is a liability or not, depending on its effect with your income, which I don't know.
20:32
SPEAKER_01: I don't have another name that I can give it.
20:34
SPEAKER_01: That's why I'm saying an income.
20:35
SPEAKER_01: Because if you look at uh Google, the difference between revenue and income is the difference between things that come in and things that go.
20:42
SPEAKER_01: But it's like we don't have a definition, so we call it income.
20:45
SPEAKER_01: But is that something that is the difference between money that comes in your pocket and money that goes?
20:50
SPEAKER_01: Yeah, we can call it income.
20:52
SPEAKER_01: Okay.
20:52
SPEAKER_01: Income because that's the definition, the dictionary definition of what's an income.
20:56
SPEAKER_01: So that difference.
20:59
SPEAKER_01: If you are in your own house, it increases that difference.
21:04
SPEAKER_01: So let me give a real life example.
21:06
SPEAKER_01: Let's say that you are paying rent, let's say, thousand CDs every single day.
21:11
SPEAKER_02: And I was like, you want to go into the argument I'm trying to prevent.
21:16
SPEAKER_01: So this is.
21:18
SPEAKER_01: But you finish, finish your training doctor, it's finished.
21:20
SPEAKER_01: So if you are paying rent thousand CDs every month and you have been tracking your income, which is the difference between the things that come out and the things that go out, you've been tracking your income.
21:28
SPEAKER_01: And your income is let's say thousand.
21:31
SPEAKER_01: You are paying thousand CDs rent every single month, and your income is thousand.
21:37
SPEAKER_01: When you move into your own house, it means the rent that you are paying every month, you don't have to pay it anymore.
21:43
SPEAKER_01: So your income becomes$2,000 instantly.
21:45
SPEAKER_01: So an asset would be anything that you do that increases your income.
21:50
SPEAKER_01: A liability should be anything that you do that decreases your income.
21:53
SPEAKER_01: So if there's something you do with your own house that decreases your income, then it becomes a liability.
21:58
SPEAKER_02: So should I give you the Opposing thoughts.
22:02
SPEAKER_02: Yes.
22:02
SPEAKER_02: So the opposing thoughts is this, right?
22:04
SPEAKER_02: So the amount that it takes for you to purchase the house.
22:09
SPEAKER_02: Now we're not talking about people who are very wealthy, who can afford to buy 10 houses, and it's not going to affect their pockets.
22:16
SPEAKER_02: The amount that it takes to purchase a house, if you calculate that versus rent, and you can do the calculation.
22:22
SPEAKER_02: If you take a house in East Legon or a house in Achimoto, a house in Tessano, the amount it will cost you to buy the house is equivalent to between 40 to 45 years of rent.
22:34
SPEAKER_02: So that means that if I have an amount of money right now, and let's say I have Granted, you have an amount of money right now.
22:41
SPEAKER_01: Yes.
22:42
SPEAKER_01: Yes, I have a big amount of money right now.
22:44
SPEAKER_01: Okay.
22:44
SPEAKER_02: So I can buy the house.
22:46
SPEAKER_02: Let's say the house is$1 million.
22:48
SPEAKER_02: Okay.
22:48
SPEAKER_02: Right.
22:49
SPEAKER_02: But renting it for a year is, I mean, a$1 million house renting will be like$2,000 to$3,000.
22:56
SPEAKER_02: Yes.
22:56
SPEAKER_02: So renting it for a year is going to be about$36,000.
23:00
SPEAKER_02: Yes.
23:00
SPEAKER_02: If I rent this house, if I even decide to splurge and I rent this house for 10 years, I pay$360,000, which leaves a remainder of$640,000.
23:12
SPEAKER_02: Now, if I put the six fifth uh six forty thousand dollars in any investment, and I mean any investment, it doesn't need to be some lavish investment or something, even if it's as basic as Treasury bills, and I put that in there for a period of forget the 40 years, even the period of 10 years, the$640,000 will grow based on compound interest more than the house would have appreciated over that time.
23:41
SPEAKER_02: So you can actually make more money with the bulk money going into investment than the money that you are saving from not paying the monthly rent.
23:52
SPEAKER_02: However, if I have a lot of money, which means I already have savings, I have investments, I have so many things, my you know, my income is diversified and everything, then buying that house now reduces my um it reduces my expenses because I don't need that money to invest.
24:12
SPEAKER_01: Do you get the okay?
24:13
SPEAKER_01: So I'm going to admit that honestly, because it's like on the top of uh you know our feet here, I haven't followed your explanation very, very well.
24:22
SPEAKER_01: Okay.
24:22
SPEAKER_01: But I think I I because I've had this conversation that I kind of get an idea where it's going to.
24:27
SPEAKER_01: But I'm going to give you a counter to that.
24:29
SPEAKER_01: Is that when you started, you said that granted that you have the money to begin with.
24:34
SPEAKER_01: Yes.
24:35
SPEAKER_01: So now we are talking about somebody who started with money because there are two types of people: one who starts with nothing, and what's one who starts with something.
24:43
SPEAKER_02: No, but I'm talking of the medium person.
24:45
SPEAKER_02: I'm not talking, that's why I said not the person who has enough money to buy and not feel it.
24:52
SPEAKER_01: Like let's say if I But first of all, anybody who has money to buy a house, we are talking of somebody who has because when you ask the question whether should you uh build a house or should you start a business, it means you are already assuming that the person has the money.
25:05
SPEAKER_02: But that's that's the problem.
25:06
SPEAKER_02: So the problem that I've noticed is because a house has become the goal, yes, it's not the people who have a lot of money that this affects the most.
25:17
SPEAKER_02: Yes, it's the person who just got some amount.
25:20
SPEAKER_02: So let's say, for instance, somebody has been broke for a long time, yes, and he gets inheritance of 1.2 million dollars.
25:27
SPEAKER_02: Yes, then he takes one million to go and buy a house because the house has been the goal for so long.
25:32
SPEAKER_02: Do you get where the catch is?
25:34
SPEAKER_02: Okay, so for the man who maybe is earning 10 million locked away, 20 million logged away.
25:40
SPEAKER_02: So definitely.
25:41
SPEAKER_01: So I get it, but I'm still going to defend that.
25:44
SPEAKER_01: And this thing, listen, I'm willing to be wrong on this, but I have played this out so many times that I end up choosing that position.
25:53
SPEAKER_01: Maybe because of my past.
25:54
SPEAKER_01: So I hope you maybe.
25:55
SPEAKER_02: Hopefully, I'll change your mind into the podcast.
25:57
SPEAKER_02: I know I know.
25:59
SPEAKER_01: But even this is this, I think this is good for the podcast because maybe a lot of people will benefit from this.
26:03
SPEAKER_01: Don't you think?
26:04
SPEAKER_01: Like, you know, okay, true.
26:05
SPEAKER_02: So I guess benefiting.
26:08
SPEAKER_01: Right.
26:09
SPEAKER_01: So let's say if you are starting with that amount of money, you just inherited a million dollars.
26:14
SPEAKER_01: Yes.
26:14
SPEAKER_01: 1.5 million dollars that you said.
26:17
SPEAKER_01: If you came to me, I will tell you to not start a business with 1.5 million dollars.
26:22
SPEAKER_01: The first game I'll tell you for somebody who already starts, it means you are starting with money.
26:26
SPEAKER_01: If you inherit$1.5 million, it means you started with money.
26:29
SPEAKER_01: Yeah, your first game I will tell you to play is to play the game of security.
26:34
SPEAKER_02: Thank you.
26:34
SPEAKER_01: Who has everything should play the game of security who has nothing can start for afresh.
26:40
SPEAKER_01: Yeah.
26:40
SPEAKER_01: So if you are going to play the game of security, what should you do?
26:43
SPEAKER_01: Take a million dollars and buy a house.
26:45
SPEAKER_01: A house, wait, wait, a game of security.
26:48
SPEAKER_01: A house that you can always sell.
26:51
SPEAKER_01: It's not like it's something that disappeared.
26:53
SPEAKER_01: The rest of it can start a business.
26:55
SPEAKER_01: And Richie, I'll tell you something.
26:57
SPEAKER_01: I don't know this for a fact, I haven't done the calculation, but I can almost guarantee that maybe 98% of businessmen started their first business with less than$1,000.
27:08
SPEAKER_01: I know I started my business with less than$1,000.
27:10
SPEAKER_01: That is why businessmen get made fun a lot.
27:12
SPEAKER_01: Because you see why I started with this.
27:14
SPEAKER_01: Because frankly, if you need$1.5 million to start a business, you are not a businessman.
27:20
SPEAKER_01: You are an investor.
27:21
SPEAKER_02: So just so you know, I'm not actually talking about starting a business.
27:25
SPEAKER_02: One thing I feel when it comes to investment, I mean we're going to go more into that, but I feel business is the last stage of investment.
27:33
SPEAKER_02: I feel that, you know, you learn from the very safe and secure investments, then you get to the more risky ones.
27:40
SPEAKER_02: Like I've even followed you, give the breakdown.
27:42
SPEAKER_02: Yes.
27:43
SPEAKER_02: And then the final level is when you understand business so much.
27:46
SPEAKER_02: Whereas we have the passion business, like, oh, I know how to make pots.
27:51
SPEAKER_02: I've started a pottery business based on my talent.
27:54
SPEAKER_02: But if they put money in your hands right now, to put it all in a business, no, it's dangerous.
27:59
SPEAKER_02: It's even riskier than very risky.
28:01
SPEAKER_01: Yeah, very risky.
28:02
SPEAKER_01: So that is why I said for people who have started with something, get a house for security and get use a bit of that money to start a business.
28:10
SPEAKER_02: So let's say I agree with you halfway to the point where you say don't start the business because you probably don't have the business knowledge or you can't take such a risk.
28:21
SPEAKER_02: The point that I'm saying is I and I agree with the security, but I would say No, start a business.
28:27
SPEAKER_01: We agree on that.
28:27
SPEAKER_01: Yeah, but start a business, but not with all of that.
28:31
SPEAKER_02: But I would say that the most secure security is a cash-back investment.
28:38
SPEAKER_02: It's an investment where, because when you talk about a house, yeah, unless you're going into real estate where you are an expert in real estate and you know how much you're going to make and everything, yes, from the risks of losing property to the fact that you've locked away a lot of money, which is going to be sitting there and not growing as fast as so many other secure investments, it becomes risky for someone who's new in the game.
29:03
SPEAKER_03: Yes.
29:03
SPEAKER_02: But for someone like yourself, who is so knowledgeable, I know the fact that you can buy a house right now, you will use the house as collateral to take a loan and build another business of the loan that you took on the house, yes, and use the loan to own a new asset and grow both.
29:18
SPEAKER_03: Yes.
29:18
SPEAKER_02: But I'm thinking about that person who doesn't know all this, all of this.
29:22
SPEAKER_02: He's 22, yeah, and his uncle just died, or his father just died and has left him this money.
29:28
SPEAKER_02: Then he'll carry the money.
29:29
SPEAKER_02: Yes.
29:29
SPEAKER_02: Go and buy a house.
29:30
SPEAKER_01: Yes.
29:32
SPEAKER_01: So when we all agree that maybe anybody listening can now use the person's own intuition to do what is that we all agree that don't use all of that to start.
29:41
SPEAKER_01: Start a business.
29:41
SPEAKER_01: And we all agree, don't use all of that to build a house.
29:44
SPEAKER_01: Exactly.
29:44
SPEAKER_01: So find a middle ground.
29:45
SPEAKER_01: Find a middle ground.
29:46
SPEAKER_01: So always start a business, but the chunk of that money, what you do, if you want to build a house that you already know, which you are saying, like so, so then you decide on your own.
29:56
SPEAKER_01: Yeah, what you're going to do.
29:57
SPEAKER_02: Are you going to so I think that we've got I like I like the advice of do something secure with it, you know.
30:02
SPEAKER_02: I security.
30:03
SPEAKER_02: I I I read that about 85% of the people who get either inheritance or win lotto lose everything.
30:11
SPEAKER_02: They lose it.
30:12
SPEAKER_02: And that's because they don't put it in anything secure, secure.
30:15
SPEAKER_01: The game of security.
30:16
SPEAKER_01: Yeah.
30:16
SPEAKER_01: The game of but now the people misunderstand this statement also because they've just started out.
30:21
SPEAKER_01: Yeah.
30:22
SPEAKER_01: So they want to do business and start building a house small, small, small.
30:25
SPEAKER_01: With that one, you can get locked and your business is not greater.
30:28
SPEAKER_01: Yeah.
30:28
SPEAKER_01: So that there's also that bad advice that people who don't uh who have nothing can want to take that advice.
30:34
SPEAKER_01: But that advice is for people who have started with something.
30:37
SPEAKER_02: Yes.
30:37
SPEAKER_02: Because one thing I feel happens the most to people is like um I heard something powerful that the amount of money you have is equivalent to your financial knowledge.
30:49
SPEAKER_02: So when you get money higher than your financial knowledge, it will drop back to the level of your financial knowledge.
30:56
SPEAKER_02: And then you'll maintain.
30:58
SPEAKER_02: So if your wisdom in money is 10,000, if you get 1 million, you will spend 990,000 before realizing.
31:09
SPEAKER_02: So I always feel when people get into money either by luck or unprepared or something, yes, your first aim should be increasing your financial literacy.
31:22
SPEAKER_01: Exactly.
31:22
SPEAKER_02: So that you can now you know what to do.
31:25
SPEAKER_02: Because it's not even luck.
31:26
SPEAKER_02: Sometimes businesses.
31:27
SPEAKER_02: You start a business, you you didn't know it was going to take off like this.
31:31
SPEAKER_02: Yes.
31:32
SPEAKER_02: And boom, it just takes off.
31:34
SPEAKER_02: Yes.
31:35
SPEAKER_02: Now you have all this money coming in.
31:37
SPEAKER_02: You don't know what to do with it.
31:38
SPEAKER_02: Yes.
31:39
SPEAKER_02: That is when the trouble starts to come in.
31:42
SPEAKER_02: Either you hire somebody who can advise you, yes, or you yourself learn and become knowledgeable like you.
31:50
SPEAKER_03: Yes, yes.
31:51
SPEAKER_03: Exactly.
31:51
SPEAKER_02: So let's take investing.
31:53
SPEAKER_02: What do you think some of the biggest mistakes are that people make in investing?
31:59
SPEAKER_01: Okay.
31:59
SPEAKER_01: So the biggest mistakes people make when they invest money is uh investing uh uh blindly.
32:08
SPEAKER_01: Let's say you've heard that okay, MTN shares, whatever shares, and then you just go in.
32:14
SPEAKER_01: And for most people, even people who are professionals, they don't beat their markets.
32:19
SPEAKER_01: Yeah, the markets always beat yeah, you know, a lot of people.
32:22
SPEAKER_01: It's like going to a casino.
32:24
SPEAKER_01: Exactly.
32:24
SPEAKER_01: So you are just throwing dots around.
32:26
SPEAKER_01: So for most people, it should be advisable for them to invest an index fund.
32:31
SPEAKER_01: Okay.
32:32
SPEAKER_01: And an index fund is like a collection of everything in the market.
32:36
SPEAKER_01: It means that you have said that I'm going to put one uh dollar in MTN, I'm putting one dollar here, I'm putting one dollar in Tesla, I'm putting one dollar in everything that is in the market.
32:44
SPEAKER_01: Okay.
32:45
SPEAKER_01: That means when you do that, there's a possibility that some of them will drop to zero.
32:49
SPEAKER_01: Yeah.
32:50
SPEAKER_01: Right?
32:50
SPEAKER_01: But there's a limit to the amount that it can drop.
32:52
SPEAKER_01: Because if there's one dollar, you can only lose 100% of one dollar.
32:56
SPEAKER_01: Worst case scenario.
32:57
SPEAKER_01: Yeah.
32:57
SPEAKER_01: But when you have to make on one dollar, there's no limit to the amount that you can make.
33:02
SPEAKER_01: So when you invest in an index fund, it's like you have put money on everything in the market, yeah, an equal amount of you know, and everything in the market, and the winning ones are actually going to save you because the losing ones, you only lose the money that you have invested, which is 100% of that money invested, a lot of everything.
33:23
SPEAKER_01: But the ones you could make 2,000, 3,000 percent.
33:26
SPEAKER_01: You can keep growing.
33:27
SPEAKER_01: Most people have to, you know, try to do an index fund or actually learn to understand what you are doing.
33:36
SPEAKER_01: You have to understand what a P ratio is, you have to understand a lot of things before you get into investing.
33:41
SPEAKER_02: So if you don't have the capacity to learn and become a master, then it's safer to go into index funds.
33:47
SPEAKER_01: Into index funds.
33:48
SPEAKER_02: Please, as you've opened the Pandora's box, please explain what stocks are.
33:53
SPEAKER_02: Because most people here invest in stocks, invest in stocks, but they're like, what is that and how do I invest in stocks?
34:00
SPEAKER_01: Yes.
34:01
SPEAKER_01: So so investing in stock is like um, let's say if you have your business, that you invest money in your business, and your business grows to the point that maybe you don't want to continue investing your business or you want to diversify.
34:12
SPEAKER_01: Yes, right, for the sake of diversification, because every business, most businesses can grow to a billion-dollar business if every single business.
34:20
SPEAKER_01: So maybe you've got into a point you want to diversify, it means you want to put money inside other businesses.
34:25
SPEAKER_01: So at that point you decide that I want to have ownership.
34:29
SPEAKER_01: I own 100% of my business, but I've heard that Richie is selling maybe 50% of his business, or he has divided his business into 100 times, and he's selling each one of them.
34:41
SPEAKER_01: So a stock is that I come to Rich and I say, okay, I own 100% of my business, I have made some money, I want to own your business too.
34:49
SPEAKER_01: But then you ask me, it's like, okay, how do you how do I own your business?
34:54
SPEAKER_01: Because the business already belongs to me.
34:56
SPEAKER_01: And then you say, Okay, I am going to divide my business into 100 parts, and each part part is called a share.
35:03
SPEAKER_01: So you're going to sell only one part of the business to me.
35:06
SPEAKER_01: So I buy one of it, right?
35:12
SPEAKER_01: So that every time that your business increases, it's like my one part also increases.
35:16
SPEAKER_01: Okay.
35:17
SPEAKER_01: So if you so my one over hundred of your business, so I own now one over hundred of your business.
35:22
SPEAKER_01: Okay.
35:22
SPEAKER_01: So that is basically you know what shares are.
35:25
SPEAKER_01: So you own part of other businesses.
35:29
SPEAKER_02: So in Africa and Ghana, how can somebody buy shares?
35:33
SPEAKER_02: How can somebody buy stocks?
35:35
SPEAKER_01: Okay, so they uh they have uh sites where you can find them.
35:40
SPEAKER_01: There's ICU ICE Wealth.
35:42
SPEAKER_01: Okay.
35:42
SPEAKER_01: Okay, there's also Bamboo, there's also a couple of you know apps that people can use.
35:47
SPEAKER_01: But I use itero.
35:49
SPEAKER_01: Itero is but most I think it's not available here in Ghana.
35:53
SPEAKER_01: Okay, but itero, and most people, all you need to do is to you know get an index fan, a couple of index fans together, and you don't have to because people do this professionally, yeah, and even then it is it is hard.
36:04
SPEAKER_01: Yeah, and the market has always beaten, over time has always beaten professionals.
36:08
SPEAKER_01: Yeah, so this is not even something I feel guilty when I tell people to even learn to treat stocks.
36:14
SPEAKER_01: Because even if you become a professional, if so, I even actually ever put out a stock course, people bought it.
36:20
SPEAKER_01: I went and refunded all of them.
36:22
SPEAKER_01: I said, because like I I feel guilty teaching them something I know that look, they'll do much better, yeah, just investing in an index fund.
36:28
SPEAKER_01: Okay, because people who know it, even much better, they they they fail with it.
36:32
SPEAKER_01: So, with all the options you just gave, they also have index funds that you can invest in, which is what I I I recommend.
36:38
SPEAKER_01: Okay.
36:39
SPEAKER_02: So, how does somebody do this?
36:40
SPEAKER_02: Like, which strategy would you recommend?
36:43
SPEAKER_02: Do you think maybe monthly they put aside money to buy stocks?
36:47
SPEAKER_02: Yes, or should it be like bulk purchase of stocks?
36:50
SPEAKER_01: Okay, so people do uh something called dollar cost averaging, okay, where you are putting everything in, you know, with time, everything with time.
36:58
SPEAKER_01: The strategy that I have found to work for me has been diversification.
37:02
SPEAKER_01: Okay.
37:03
SPEAKER_01: Say that I have diversified, that means I've said of all my all the things I own, I'm going to live, let's say, keep I'm going to be 10% liquid.
37:12
SPEAKER_01: And 10% liquid doesn't mean cash only.
37:15
SPEAKER_01: 10% liquid that means that I'm going to have 10% of my assets that I can sell at any time.
37:20
SPEAKER_01: Okay.
37:21
SPEAKER_01: Stocks.
37:22
SPEAKER_01: It's one of them, uh you know, crypto, whatever.
37:27
SPEAKER_01: So I decided if I put I'll put maybe 50% in you know, cash and it's equivalent, 50% of that 10%.
37:35
SPEAKER_01: So let's say 5% in stocks, 5% in you know, uh cash or it's it's equivalent.
37:41
SPEAKER_01: Okay.
37:41
SPEAKER_01: So uh the market dictates uh how you invest.
37:46
SPEAKER_01: So let's say if uh 5% or 10% of my money is 10 CDs and I put 10 CDs in the in the stocks, I don't always say because most people they wait, when they hear that stocks are fallen, then they want to do that.
37:58
SPEAKER_01: Then they sell.
38:00
SPEAKER_01: When they hear it's like one day, oh, there's big Bitcoin, everybody rushes in.
38:03
SPEAKER_01: Yeah, when they hear, oh, the market is bad, then everybody rushes out and they lose money.
38:08
SPEAKER_01: Right?
38:08
SPEAKER_01: Some people also try to always time the market when it is low, then they get in whatever.
38:12
SPEAKER_01: So it's like I just decide that I'm going to keep an asset, uh uh, you know, an allocation of a particular amount.
38:20
SPEAKER_01: So if let's say 10% of uh let's say your net worth, that is everything that belongs to you, yeah, uh, is let's say 10 cities.
38:29
SPEAKER_01: When you put 10 cities in the market, uh whenever the market falls, it means your 10 cities is now eight cities.
38:34
SPEAKER_01: You know that you have to add two cities.
38:37
SPEAKER_01: Okay, right?
38:38
SPEAKER_01: So you add two cities to it, uh, and uh whenever the market also increases, you've heard that stocks have increased, maybe your 10 CDs has now become 15 CDs.
38:47
SPEAKER_01: You go and you pull back five CDs.
38:49
SPEAKER_01: Okay, so the market decides how you go, and that's why I I I and this strategy will work with something that is less likely to go to zero.
38:58
SPEAKER_01: And that's why I always insist on index funds because index funds have a track record, like for index funds to go to zero, whatever situation will happen for you to go to zero, you would have lost your life.
39:07
SPEAKER_01: It needs to be global.
39:08
SPEAKER_01: No, you would have for index fund to go to zero, it's like whatever would have happened would have been worse than it's like your money will be your last thing on your way.
39:15
SPEAKER_01: Yeah, so that's why I always say in you can play this game with index fund.
39:19
SPEAKER_01: Otherwise, those who want to take a bit of risk, there's an app called investing.com where you can subscribe, you pay monthly.
39:26
SPEAKER_01: They are able to show you apps that are undervalues, uh, valued, apps that are overvalued.
39:32
SPEAKER_01: So they give you a fair value analysis and they give you an analyst target.
39:37
SPEAKER_01: Okay.
39:37
SPEAKER_01: So the app itself tells you when we look at the stock markets, these are the stocks that they think their prices are low.
39:44
SPEAKER_01: And then this is this is uh also what analysts think of that stock.
39:48
SPEAKER_01: Okay.
39:48
SPEAKER_01: So sometimes when I want to be careless, and that is even that that's not even as careless.
39:53
SPEAKER_01: I go, I target stocks where the site has rated that it is undervalued, the analysts have rated that it is undervalued.
40:02
SPEAKER_01: You can buy those stocks, and whenever it is fair value, then you sell.
40:05
SPEAKER_01: So it's just like going to the market to buy something low, and when it is high, then you sell.
40:10
SPEAKER_01: So you you know, investing.com, you subscribe.
40:14
SPEAKER_01: Whenever stocks fall, you go to the site, the site tells you which sites stocks are under.
40:18
SPEAKER_01: But for most people, you'd do index.
40:21
SPEAKER_02: So multiple index, those who want to gamble in a wise way, invest.
40:26
SPEAKER_01: But but even that it's it's it's a safe one because first of all, it's stocks.
40:30
SPEAKER_01: These are companies, real life companies, and then you are analysts have agreed it is undervalued.
40:35
SPEAKER_01: Yeah, but also it's not also because a stock is undervalued that it is always going to come back.
40:39
SPEAKER_01: Yeah, some can go to zero.
40:41
SPEAKER_01: Yeah, true.
40:42
SPEAKER_01: So so it is with stocks, it is that is why it is a game for.
40:46
SPEAKER_01: In fact, people who understand these things that we are talking more than you and I, yeah, that is why they are the richest people in the world.
40:51
SPEAKER_01: Warren Buffett and Co is like, yeah, when you understand investments and you master investment, it's like because that's then money losing.
40:59
SPEAKER_01: So that is the ultimate skill if you want to become like wealthy, is the ultimate skill in money making because business is your energy plus money, yeah.
41:08
SPEAKER_01: So even if you make uh money with business, it means that there's always your energy.
41:13
SPEAKER_01: Yeah, but understanding investing is to sit back and work for you.
41:17
SPEAKER_01: Only money.
41:18
SPEAKER_01: And frankly, if I I knew that, like it was a skill I mastered at 100%, I would leave business and go 100% into that.
41:27
SPEAKER_02: Because then your employee is money, that's the best employee to have the best employee to have is money.
41:31
SPEAKER_01: So that is why that's that's place, even if you advise people to learn about it and get in it's so because it's challenging.
41:39
SPEAKER_01: People are using computers, entire teams, and they are losing.
41:42
SPEAKER_01: Yeah, but maybe somebody could be working, the person is a watching, the person is a genius.
41:47
SPEAKER_01: So we should be careful to not discourage geniuses.
41:49
SPEAKER_01: Yes, but for 99% of somebody's a mastermind out there.
41:54
SPEAKER_01: So if you are the mastermind and you think you can go into stocks like that, then you should do it.
41:58
SPEAKER_01: But for most people, index funds.
42:00
SPEAKER_02: I watched you give a beautiful explanation on how inflation rate affects the normal person.
42:07
SPEAKER_02: You know, mostly when people hear inflation rate, it sounds like okay, this is something for the government to fight about, finance minister, figure it out.
42:15
SPEAKER_02: But when I watched your explanation, I was like, yes, this is the kind of thing that every man on the street will understand.
42:20
SPEAKER_02: Please explain it for me again.
42:22
SPEAKER_01: Yes.
42:23
SPEAKER_01: So um, in our part of the world, unfortunately, because of lack of education, inflation eats away people's you know, net worth a lot.
42:32
SPEAKER_01: Because uh, and this um because the last time I spoke about this, it gave me problems a bit on my account.
42:41
SPEAKER_01: It gave me so much, I am missing that I started getting so because this is you know, it's it's on that level.
42:46
SPEAKER_01: So we are just going to you know touch it a little bit.
42:49
SPEAKER_03: Oh, save, save.
42:50
SPEAKER_01: It's gonna be not affect my account.
42:54
SPEAKER_01: So so the thing is that most people, if I buy this glass, yes, let's say at 10 cities, at 10 cities, this is what I bought I've bought the thing for.
43:04
SPEAKER_01: Then I have sold it and I've made let's say 12 cities.
43:11
SPEAKER_01: And after a year, I want to buy the same glass.
43:16
SPEAKER_01: If that same glass, even though I would have made two CDs profit, right?
43:20
SPEAKER_01: Because I bought it 10 CDs and I sold it 12 CDs.
43:23
SPEAKER_01: Yes, but if I go back to buy that same glass after a year, and that glass is now 12 CDs, it means that I have just uh wasted my energy.
43:33
SPEAKER_01: Yes, I have not made any money.
43:36
SPEAKER_01: It might appear that I have made money, but I've not made money because I'm looking at the ones, the twos on top of the money.
43:43
SPEAKER_01: Because I bought it 10 cities and I sold it 12 cities.
43:45
SPEAKER_01: So I look at the two CDs on top and I think that I've made money.
43:49
SPEAKER_01: Yeah, but the real value of money is not uh you know those nominal values on top of it.
43:56
SPEAKER_01: One, two, I've given you uh, you know, uh 10 CD.
44:00
SPEAKER_01: This and you've given me back 15 cities, so I've made five cities, I've made money.
44:03
SPEAKER_01: Is the purchasing power of that money?
44:05
SPEAKER_01: 100%.
44:05
SPEAKER_01: So at the top, so if you are doing any business and that business is making you profit, but the rate of growth of that or the percentage of that profit is not above inflation in your country.
44:18
SPEAKER_01: You might think that you are making money, but you are getting poor.
44:20
SPEAKER_02: You're actually going down.
44:22
SPEAKER_01: You are going down because as much as you are making profits, you will not be able to buy the things that you could buy in the end.
44:28
SPEAKER_01: I mean, in the past.
44:30
SPEAKER_01: Right?
44:31
SPEAKER_01: And when I came here, I saw it's uh a crazy aspect of it where you know we came around, we needed a car to go around, so we bought a hundred CRV, about 300,000 CDs.
44:44
SPEAKER_01: We went all over the country with it, and we're about to travel, so we decided to sell it.
44:52
SPEAKER_01: And when we went, you know, because of course we had also uh converted it to the two dollars, and when we went back to sell it, the money that they had you know offered, we noticed that even in the in terms of the dollar, it had increased.
45:09
SPEAKER_01: So it means that actually owning assets, like assets that appreciate, and it's funny because cars in most places depreciate anywhere.
45:17
SPEAKER_01: But I found that in our distinct, because the because the inflation rate is so fast.
45:22
SPEAKER_01: So even assets increase so much.
45:23
SPEAKER_01: So we found out that even if you sold that car, we're going to make more money than we that means that we made it's almost like they paid us to have the car, to have the car.
45:34
SPEAKER_01: So it's like instead of renting the car, it's like we uh kind of it's like we took the car and then they were paying us rent for the car.
45:42
SPEAKER_01: Yeah.
45:42
SPEAKER_01: So a lot of people don't understand that it's better to hold on to assets in our parts of the world because inflation eats into a lot of people's, you know.
45:52
SPEAKER_02: So if you if you if you look at it this way, then it means like let's say you are working in a company, right?
46:00
SPEAKER_02: If you are not getting an incremental increase which is higher than the inflation rate, you are losing money every year.
46:08
SPEAKER_01: You are losing money every year, and this is why because a lot of people have vested interest in this in this topic, and this is why I try to shy away from it, you know, because of course you want to grow and everything.
46:20
SPEAKER_01: It's okay.
46:21
SPEAKER_02: So people are getting poorer.
46:24
SPEAKER_02: So I can't mention the the treasury bills and inflation, you know.
46:30
SPEAKER_01: So that is that is something that you know uh definitely a lot of people need to pay attention to.
46:36
SPEAKER_01: It's just not the money that you make, but the money that you make in function of the rate of inflation.
46:41
SPEAKER_01: So, whichever country that you are watching, you have to you know find out the rate of inflation in your country and see if your business is beating that.
46:49
SPEAKER_01: It's very, very important.
46:50
SPEAKER_02: Okay, so right now, let's let's let's move to something else since you don't want to inflate the conversation.
46:55
SPEAKER_02: Yeah, I've come to you right now.
46:58
SPEAKER_02: I'm holding 2,000 CDs.
46:59
SPEAKER_02: Yes.
47:00
SPEAKER_02: I want to start a business.
47:01
SPEAKER_02: What business can I start?
47:03
SPEAKER_01: Okay, so with businesses, we have a lot of businesses that anybody can start, so many businesses.
47:11
SPEAKER_01: And sometimes, uh in the beginning, I used to get this question a lot.
47:15
SPEAKER_01: And I used to shy away from this question.
47:16
SPEAKER_01: Now I've decided on my page, I've you know told people there's this business, because pretty much, Richie, every single business that we can think of, somebody somewhere you know is making so much money doing it.
47:29
SPEAKER_01: Yeah, so it is the person's skill, you the person doing it.
47:33
SPEAKER_01: It's because the whatever business you are succeeding at right now, somebody is doing terribly with that business and saying it is bad.
47:39
SPEAKER_01: But you are succeeding.
47:40
SPEAKER_01: Whatever business you have, uh sorry I'm prolonging the conversation, but uh recently I saw this man, knee uh knee something, the man who just Richard Niamakwick.
47:50
SPEAKER_01: Richard, yeah.
47:50
SPEAKER_01: He said he had done loans business and he has succeeded with that.
47:53
SPEAKER_01: Yeah, that was the very business that got me in debt.
47:55
SPEAKER_02: So he can't come and say that loan business is a good business.
47:58
SPEAKER_02: It's a good business.
47:58
SPEAKER_01: So what succeeded, whatever skill he used to succeed, I feel terribly at that.
48:03
SPEAKER_01: Yeah, I failed in that business.
48:04
SPEAKER_01: I watched the video, and then you know, he used that business to make money.
48:07
SPEAKER_01: I'm like, okay, he did something right.
48:09
SPEAKER_01: So I could say loans business.
48:10
SPEAKER_01: So with businesses, plenty.
48:12
SPEAKER_01: There's uh, you know, uh laundry business, there's fish farming, there's in our parts of the world, a lot of businesses.
48:18
SPEAKER_01: But it's not enough to just rush into those businesses.
48:22
SPEAKER_01: It's better to equip yourself with the skills.
48:24
SPEAKER_01: So that is why I give that road that you have to follow, that process, or try to learn and understand a lot.
48:31
SPEAKER_01: Whatever business you are interested in, get close to people who are in that business.
48:35
SPEAKER_01: Try to learn it as much as possible.
48:37
SPEAKER_01: Because pretty much every business, so long as it's already in Ghana, or something that you can use to know if your business is good.
48:43
SPEAKER_01: Have somebody done it over 10 years and they are still in it, are they intentionally losing money?
48:48
SPEAKER_01: Okay, foreigners are in your country, they are doing businesses.
48:51
SPEAKER_01: Would they leave their country and come all the way here or come all the way there if there wasn't money in it?
48:56
SPEAKER_01: So I tell people if you want to see a good business idea, pay attention to businesses that foreigners are doing in your country.
49:02
SPEAKER_01: Okay, it's a telling sign, but that is not enough because you can start it.
49:06
SPEAKER_02: You can start it and still fail.
49:07
SPEAKER_01: It still doesn't go anywhere.
49:09
SPEAKER_01: True, so it's always better that working on yourself.
49:12
SPEAKER_01: Okay, and perhaps what has made me succeed in Airbnb business is because I did loans business and I failed.
49:19
SPEAKER_01: Okay, and every business is like almost the same skill sets that you need almost in every business.
49:24
SPEAKER_01: If you look at the skill sets, you know, being disciplined with money, yeah, trying to give value to your customers, try to not, you know, just give loans, things, on credit to people, anyhow.
49:34
SPEAKER_01: Yeah, it's pretty much the same set of principles, but just that the business changes.
49:38
SPEAKER_01: Yeah.
49:39
SPEAKER_01: And if you fail in any of those principles, whichever business that you are doing, you'll still fail.
49:44
SPEAKER_01: You are going to still fail.
49:45
SPEAKER_02: So if I have 2,000 CDs, I should invest in my knowledge.
49:48
SPEAKER_01: You should invest in your knowledge.
49:50
SPEAKER_01: You should probably join my Airbnb school.
49:52
SPEAKER_01: I like that.
49:53
SPEAKER_01: And then learn how to run Airbnb because every single thing that I have, you know, learn, I continue on my page also.
49:59
SPEAKER_01: I learned to I continue to share a lot of free value on you know, Instagram, Facebook.
50:03
SPEAKER_01: I've created a school, and since we've started, so many people have come with you know a lot of positive testimonials about you know the strategies that we teach.
50:12
SPEAKER_01: So somebody, and frankly, it doesn't have to be with me.
50:15
SPEAKER_01: Today there's a lot of things on the internet, a lot of schools on the internet that you can learn, people that can mentor you that you can learn, understand.
50:24
SPEAKER_01: Because that's why when I did the list, I said the first thing that you have to invest in is in yourself.
50:28
SPEAKER_01: Yeah, you have to invest in yourself.
50:32
SPEAKER_02: So let's go back to Rich Dad for that.
50:35
SPEAKER_02: There's one thing that he talks about a lot, and that is debt.
50:39
SPEAKER_03: Yeah.
50:40
SPEAKER_02: So, first of all, how do you feel about debt and what do you think is the difference between good debt and bad debts?
50:48
SPEAKER_01: Okay, so when I started off, I was against all forms of debt.
50:52
SPEAKER_01: Okay.
50:53
SPEAKER_01: But genuinely, people much, much, much richer than me, richer than me, well, you know, a lot richer than me, use debt as a tool.
51:01
SPEAKER_01: So my position on that, you know, has not changed, but it is a lot more flexible.
51:07
SPEAKER_01: That anybody who wants to flirt with debt has to understand that debt is a tool.
51:14
SPEAKER_01: Yes, right?
51:15
SPEAKER_01: And if you are borrowing money, there's a concept that I I came about that I call that inside debt and outside debt.
51:22
SPEAKER_01: And inside debt is that you are borrowing money that is more than the amount of money that you have.
51:29
SPEAKER_01: First of all, that is how most of the time you know that you are doing something wrong.
51:32
SPEAKER_01: It means that you have one CD, then you have borrowed two CDs.
51:35
SPEAKER_01: Yeah, when you lose that that that two CD, it means that you are forced to pay with money you have never made in your life.
51:41
SPEAKER_01: Yeah.
51:42
SPEAKER_01: Right?
51:42
SPEAKER_01: So for you to even borrow, that means if you must attack that, it means that you have to borrow money at least that you have made before in the past.
51:50
SPEAKER_01: Let's say you have two cities and you have borrowed one city.
51:54
SPEAKER_01: Yeah.
51:54
SPEAKER_01: You know that even if you lose that one city, you know how to make it making it.
51:59
SPEAKER_01: Because you've made it before.
52:00
SPEAKER_01: Yeah.
52:00
SPEAKER_01: But because, like you said, that there's always a level that's so you have to borrow within.
52:07
SPEAKER_01: So it is you have to stay outside of debt.
52:09
SPEAKER_01: That means you are bigger than the debt that you are taking.
52:11
SPEAKER_01: Yes.
52:12
SPEAKER_01: Inside of debt, it means that the debt you are taking is bigger than that.
52:14
SPEAKER_01: Yes, bigger than you.
52:15
SPEAKER_01: I did that.
52:16
SPEAKER_01: I I you know had never made$100,000.
52:18
SPEAKER_01: I borrowed$100,000 because students were giving it to me.
52:21
SPEAKER_01: And it was like the worst period in my life because I was in debt and it was super hard.
52:25
SPEAKER_01: And I believe that it was divine intervention that saved me because it got it, it had got into a time I gave up.
52:32
SPEAKER_01: So a good debt would be for you to take debt that you know exactly what you are doing to me.
52:38
SPEAKER_01: Means if you are taking money and it is to make money, I would say it's a good debt.
52:43
SPEAKER_01: If you are taking money, you are taking it to spend, it would be a bad debt.
52:47
SPEAKER_01: But even the good debts, you have to know what you are doing.
52:49
SPEAKER_02: Yeah.
52:50
SPEAKER_02: You still need to make sure that it's beneath the amounts that you have.
52:53
SPEAKER_01: It is beneath, you know, if anybody gave me money when I started my first business, I would have, I would have lost it 100%.
52:59
SPEAKER_01: But my second business, because I already knew what I was doing, it was a lot different.
53:04
SPEAKER_02: Okay.
53:04
SPEAKER_02: So that means even if you are going for a good debt, first of all, it needs to be something you can make back, and also needs to be something secure.
53:13
SPEAKER_02: When you are investing in something secure that you know it's not going to like completely shatter your world.
53:19
SPEAKER_02: Exactly.
53:20
SPEAKER_01: Then you can invest in things that you know that in the worst case scenario, yes, you can have assets that you can sell.
53:26
SPEAKER_01: Yes.
53:26
SPEAKER_01: Because that is one of the lessons I learned with my loan business, is that we didn't have assets.
53:30
SPEAKER_02: So when you owed money, you had to find it from elsewhere.
53:33
SPEAKER_01: We're just giving money to people, and the monies that we're giving to people because they are debts, and debts are assets.
53:38
SPEAKER_01: So we're giving debt to people, and the debts were the only assets that we have.
53:41
SPEAKER_01: We didn't have any building, anything that if we had difficulties, we could sell to pay the.
53:46
SPEAKER_01: So one of the telling signs that you are doing something wrong is if the debts that you are taking is being invested in things that you can easily sell to get back your money.
53:54
SPEAKER_02: So let's say, like if you take a loan to open a farm, if it doesn't go well, you can sell the land, you can sell the farm equipment.
54:01
SPEAKER_01: You bought the land, at least there's something that you can use to compensate.
54:04
SPEAKER_01: Yes.
54:05
SPEAKER_01: But if you take loans from people like what I did, you take loans and you are giving it to other people as loans.
54:11
SPEAKER_01: When they don't pay you, you don't have any assets.
54:13
SPEAKER_01: You have to, you know, get the money from your pockets.
54:16
SPEAKER_02: So now let's come to Ghana.
54:18
SPEAKER_02: What is the easiest way?
54:20
SPEAKER_02: And let me not say easiest, easiest and safest way to invest as a Ghanaian.
54:26
SPEAKER_01: So uh for me, I'm an index uh fan uh person, so I always stick with index fan you know any day.
54:34
SPEAKER_01: And first of all, you see, uh the reason why investment is hyped a lot is because it's a lazy way of making money.
54:42
SPEAKER_01: Okay, because then you have only your money making money for you.
54:46
SPEAKER_01: Yes, but one thing that people should understand is that investment is for when you have really already made some money.
54:53
SPEAKER_01: Because honestly, and that is why I said I refunded, I ended up referring to people because listen, for most people, let's say if you have all you have is 2,000, 3,000 cities.
55:00
SPEAKER_01: Yes, you can start somewhere, but it is going to be very hard for you to make money with only your money when you don't have enough money.
55:09
SPEAKER_02: So, what about the effect of compound interest?
55:11
SPEAKER_01: So, yes, the effect of compound interest uh works a lot when you are talking of big numbers.
55:17
SPEAKER_01: If let's say we give you 2,000 and then you start 2000, I don't I can't run off head, but you can tell it's going to get it to get low, like it will be a uh it will take time before that money can become something important.
55:33
SPEAKER_01: So, of course, as you are doing business, you can try to invest in you know other businesses, you can try to invest a lot, but it's not something that somebody starting out should actually obsess themselves with.
55:45
SPEAKER_01: It will be much better to obsess yourself with educating yourself, obsess yourself with businesses that let's say you can put your energy plus some money and that business can grow.
55:57
SPEAKER_01: But if all that you are thinking of is investment, let's say you don't have anything, but you want to invest money for that money to even frankly, even people who have a lot of money, like how many investments do you have that you can put a lot of money that can bring an important amount of money monthly for somebody who has money, right?
56:15
SPEAKER_02: Because the thing is, the thing about the amount that is coming monthly is when you have a lot of money, then that interest does not really matter to you.
56:24
SPEAKER_02: So the person investing only 500, the interest feels small in their life.
56:29
SPEAKER_02: Yes, the person investing 50,000, yes, the interest is still small in their life because if the interest is worth 2,000, then it doesn't it's not so that is why investment is on top there.
56:39
SPEAKER_01: It's like the ultimate.
56:40
SPEAKER_01: So you start somewhere, investment is like on top.
56:42
SPEAKER_02: So let's say right now, let me open investment calculator.
56:46
SPEAKER_01: Yeah.
56:48
SPEAKER_02: So there's there's a there's a calculation which somebody opened my mind to, which showed me that the only reason people don't end up rich is because they don't look at the value of time.
56:59
SPEAKER_02: Wow.
57:00
SPEAKER_02: So let's say um I've just given birth, right?
57:05
SPEAKER_02: And I want to make sure that my child starts life in a secure way.
57:10
SPEAKER_02: So I want to set up my child well at the age of 20.
57:15
SPEAKER_02: Okay.
57:15
SPEAKER_02: So if I decide to put 500 CDs in a basic investment, let's say I want to beat inflation.
57:23
SPEAKER_02: So I decide to do treasury bills.
57:24
SPEAKER_02: Yes.
57:25
SPEAKER_02: So right now I think treasury bills are at 14, 15%.
57:28
SPEAKER_02: So let's say 15%, and I put 500 CDs a month down for my child.
57:34
SPEAKER_02: 500 CDs feels insignificant.
57:36
SPEAKER_02: Yes.
57:37
SPEAKER_02: But at the end of the 20 years, my child will start life with 664,000 CDs.
57:46
SPEAKER_01: After 20 years.
57:47
SPEAKER_01: Yes.
57:48
SPEAKER_01: Yes.
57:48
SPEAKER_02: Now I know somebody will say based on inflation rates and everything, it means the money, the 660,000 CDs won't be worth as much as it is now.
57:58
SPEAKER_03: Yes.
57:58
SPEAKER_02: But because, as basic as Treasury bills is, it beats inflation every year, yes, it would still mean your child would have enough.
58:07
SPEAKER_01: And the beauty of compound interest is that the interest will be making interest also as well.
58:12
SPEAKER_01: Thank you.
58:12
SPEAKER_02: So even if your child, yes, even if the 660,000 is worth what would be worth like 100,000 right now.
58:19
SPEAKER_02: If when I was 20, yes, I had 100,000 to start life with, would that be very beautiful?
58:26
SPEAKER_02: Yes, that's that's that would have been so don't you think as much as investments may not have because like as I'm mentioning, 500 cities, yes, the amount I'll make on 500 cities is so negligible, yes, it's it's not worth it.
58:39
SPEAKER_01: So if you are doing it because let's say you have a plan, yes, you know, 20-year, 10-year plan, and you have decided to stick with it, and then you are putting something you know on the side, it's not something that you are depending on for a living.
58:51
SPEAKER_01: Exactly.
58:52
SPEAKER_01: My problem is like when somebody says, Okay, I have uh 2,000 cities, what investment should I yeah, you know, I would just want to expect to make the money back.
59:00
SPEAKER_01: How 2,000 c what should I invest in?
59:02
SPEAKER_01: No, you probably should start a business, probably should get a course, or you have to work on yourself.
59:07
SPEAKER_02: I think that's why this era, especially, people aren't understanding investment because they don't get that.
59:13
SPEAKER_02: Investment is a long game, yeah.
59:15
SPEAKER_02: It's not for you that you want to make money in the mixing.
59:19
SPEAKER_02: Like right now, right now, right now.
59:20
SPEAKER_01: Yeah, yes.
59:22
SPEAKER_01: A lot of people think that it's not.
59:24
SPEAKER_02: Okay, so how can somebody, I mean, I just gave one example, but aside this, how can somebody build wealth slowly over time?
59:33
SPEAKER_01: Slowly over time, it's uh I always get back to the wealth GPS.
59:37
SPEAKER_01: Okay, the wealth GPS is that you get a job, you start a business.
59:43
SPEAKER_01: Once you start a business, then you start investing.
59:46
SPEAKER_01: That means you try to automate that business, you bring on a lot of people because in the beginning you are doing things, but as you start, you don't keep doing those things.
59:54
SPEAKER_01: You bring somebody, you give a job to someone, another person you give to someone, yeah.
59:59
SPEAKER_01: So other people join you.
1:00:00
SPEAKER_01: So you have a team working with you, and then now you start making more money than you can afford to spend.
1:00:07
SPEAKER_01: Yeah, so it is this money that you have to have a strategy.
1:00:10
SPEAKER_01: Because every single thing that you do in this life, you do with a strategy.
1:00:14
SPEAKER_01: That's why I call myself a wealth strategist.
1:00:16
SPEAKER_01: Because I understand strategy is more important.
1:00:19
SPEAKER_01: When you eat food, it's like you take the food you put it on.
1:00:21
SPEAKER_01: It's a strategy.
1:00:22
SPEAKER_01: Yeah, every single thing is like you always do, you don't every time come in front of food, you don't know what to do with it.
1:00:27
SPEAKER_01: It's like no, you have a strategy, you just take it in.
1:00:29
SPEAKER_01: So you have to have even an investment strategy, okay, which is that I am going to start a business.
1:00:36
SPEAKER_01: When my money comes, at the end of the month, this is what I uh I'm going to do.
1:00:40
SPEAKER_01: Asset diversification.
1:00:41
SPEAKER_01: That means identify things that have a track record.
1:00:45
SPEAKER_01: There's a concept uh in in uh anti-fragile, a book called Anti-Fragile, where it says that and this is how to identify the kind of things that you have to put your money in.
1:00:56
SPEAKER_01: That most things if something has been around for 10 years, you can expect it to be around for the next 10 years.
1:01:03
SPEAKER_01: Okay.
1:01:03
SPEAKER_01: If it's been around for a day, you can expect its lifespan to be a day.
1:01:07
SPEAKER_01: If something has been around for 100 years, you can expect its lifespan to be a hundred years, and they've measured it, and it's almost always true.
1:01:14
SPEAKER_01: Okay.
1:01:14
SPEAKER_01: So if you want to do a safe bet, you have to bet on something that has had you know a track record of being around around and has you know actually made people money.
1:01:27
SPEAKER_01: So you can identify these investments and then you can spread your money.
1:01:31
SPEAKER_01: So as you are making money in your business, you are still growing your business, okay.
1:01:35
SPEAKER_01: At the same time, you are investing in all of these vehicles.
1:01:39
SPEAKER_01: You keep at it, you do an asset allocation.
1:01:42
SPEAKER_01: Yeah, I like an asset allocation because it's like it works out itself, it's almost like you have automated your investments.
1:01:48
SPEAKER_01: If you decide ahead of time, I'm going to put 10% in this, I'm going to put 10% in this, I'm going to put 10% of this based on what you are adjusting.
1:01:57
SPEAKER_01: So that is actually a winning strategy that you can have because you have a business that is doing well for you.
1:02:04
SPEAKER_01: And your aim is to because if right now your business is let's say making you 5,000 cities, your aim is to continue doing this until you have other investment.
1:02:14
SPEAKER_01: If the investment can make 5,000 cities for you, it means that at that time you have become an investor, it means you have uh reached the point where you have your money alone making money for you.
1:02:27
SPEAKER_01: Beautiful.
1:02:28
SPEAKER_01: So that's that is something that you can count on.
1:02:31
SPEAKER_01: Wow.
1:02:31
SPEAKER_01: For the long term.
1:02:32
SPEAKER_02: So let me ask you this question if once again you lost everything, give me a step-by-step way that you rebuild.
1:02:41
SPEAKER_01: So this I say if I mean right now, yes, you I go right into Airbnb business because Airbnb business is a business that I know I can start without capital.
1:02:53
SPEAKER_01: I know exactly how to start because I've been in that business long and it's a business that I know how it works.
1:02:58
SPEAKER_01: But if we are assuming that I didn't have all of that knowledge, and it's just somebody who's watching this podcast who needs to start out, advise that the person should either get a job or try to, you know, get something that they can do online, you know, fiver or something, or learn uh about marketing.
1:03:17
SPEAKER_01: This week I had a guy call me, he was from K and K no, UPSC.
1:03:23
SPEAKER_01: Okay.
1:03:24
SPEAKER_01: He wrote me and he said that he knows how to do funnels, you know, marketing and everything.
1:03:28
SPEAKER_01: Okay.
1:03:29
SPEAKER_01: I brought him on, he designed, you know, something for he designed a landing page for me, opt-in funnel.
1:03:34
SPEAKER_01: He was very, very good.
1:03:35
SPEAKER_01: So I asked him, like, how did you do this?
1:03:36
SPEAKER_01: He said, I'm a student.
1:03:37
SPEAKER_01: I just decided to learn these things.
1:03:39
SPEAKER_01: And I told him, I said, Listen, this thing you are going to go places because he's learned something that is a high-paying skill.
1:03:45
SPEAKER_01: He's in the university, he's already learned about marketing.
1:03:48
SPEAKER_01: So this guy can go online and he can find a job for himself.
1:03:52
SPEAKER_01: And in fact, what he's doing for me is it's it's so worth it because it's something that you know I was struggling with.
1:03:58
SPEAKER_01: He came and then he was able to do that.
1:04:01
SPEAKER_01: So I'd advise somebody to either get a job or learn one of these skills.
1:04:04
SPEAKER_01: Okay, either marketing, either uh sales, uh copyright.
1:04:10
SPEAKER_01: Copywriting.
1:04:11
SPEAKER_01: Okay, copywriting too is also something that people from nothing they are able to learn copywriting, reach out to people who need it, and you know it works out for them.
1:04:20
SPEAKER_01: But if you want something that is for a long while, you have to get a job in an industry that you like, okay.
1:04:28
SPEAKER_01: Industry that you've seen people, especially if it's not in a big group, if it's not there like where you can still have you can still see how everything is happening and eventually start your own business in that that industry.
1:04:39
SPEAKER_01: Awesome.
1:04:40
SPEAKER_01: So that's how I personally I would so you have to do me a favor.
1:04:43
SPEAKER_02: There's one thing that I like to do.
1:04:45
SPEAKER_02: I say that my goal is to make everybody watching become a mastermind.
1:04:49
SPEAKER_04: Yeah.
1:04:50
SPEAKER_02: So I want you to imagine you could stretch your hand through the camera and enter into the person watching's brain and drop one idea or one mindset shift.
1:05:01
SPEAKER_02: Yes.
1:05:02
SPEAKER_02: What would that be?
1:05:04
SPEAKER_01: So I believe that everything is understanding.
1:05:08
SPEAKER_01: Okay, it is our understanding, and that is what separates us from animals because we understand some things that they don't understand.
1:05:14
SPEAKER_01: Yeah.
1:05:14
SPEAKER_01: Understanding is what?
1:05:16
SPEAKER_01: You know, the difference between rich people and poor people.
1:05:19
SPEAKER_01: Because rich people understand some things that poor people don't.
1:05:22
SPEAKER_01: Yes.
1:05:22
SPEAKER_01: Okay, understanding is the difference between everything.
1:05:26
SPEAKER_01: So once you have an understanding of certain principles, so you have to be in search of knowledge.
1:05:30
SPEAKER_01: Okay.
1:05:31
SPEAKER_01: Today there's artificial intelligence that is there.
1:05:33
SPEAKER_01: You can learn about pretty much anything on the internet, right?
1:05:36
SPEAKER_01: You can let artificial intelligence guide you.
1:05:39
SPEAKER_01: You can a prompt that I personally recommend for everybody to use is that I want you to act as my life coach.
1:05:46
SPEAKER_01: I want you to ask me questions.
1:05:48
SPEAKER_01: Continue asking me questions until you have understood where my life is headed and recommend solutions to me so that I can use it to fix my life.
1:05:58
SPEAKER_01: This is a very powerful prompt that most people watching today can use that to seek knowledge.
1:06:04
SPEAKER_01: Awesome and, you know, understanding of important things in their lives.
1:06:07
SPEAKER_02: Adnan, thank you.
1:06:08
SPEAKER_02: Thank you so much.
1:06:10
SPEAKER_02: You have been so beneficial and knowledgeable.
1:06:12
SPEAKER_02: Thank you.
1:06:13
SPEAKER_02: Thank you.
1:06:13
SPEAKER_02: It's a dango thing, name.
1:06:14
SPEAKER_02: You have to register it.
1:06:16
SPEAKER_02: All right, all right.
1:06:20
SPEAKER_02: Thanks for watching this episode.
1:06:21
SPEAKER_02: The fact that you stayed all the way through to the end tells me that you're not only curious, but you have the discipline to see what you do all the way through to the end.
1:06:31
SPEAKER_02: Now, let's build a community of thinkers who are ready to become the best version of themselves.
1:06:37
SPEAKER_02: So, subscribe to the channel and the mindset that you will develop and grow every day to become a true mastermind.