Latest / Money Grows on Trees / #212 - Top 8 Questions About Wealth (Answered By A Millionaire)!

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#212 - Top 8 Questions About Wealth (Answered By A Millionaire)! · Money Grows on Trees

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A truth about debt that people probably want to accept is that it's actually
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very effective sometimes and you don't want to steer away from it. The way
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that school systems contribute to a broke mindset is they keep you within the
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rules and to make money, you've got to break rules. Never break the law but
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break rules. Wealthy people want to have multiple streams of income because we
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want to fortify and diversify our income streams. In
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my mind, someone who doesn't have any money is broke but
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someone who doesn't have a well-developed money mindset
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is poor and broke people can get money back again but poor people
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are always poor. The most effective way to radically
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transform your money mindset is... I'm Lloyd James Ross, seven-figure
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investor and entrepreneur and I've helped thousands of business owners and
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professionals turn financial stress into success. If
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you're stuck in old money habits, overwhelmed by investing or unsure where
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to start, this is for you. I'll give you the mindset and
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strategies to take control, grow your wealth and achieve financial
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freedom. It's time to make your money work for you. And in
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this episode, I'm going to be answering some of the biggest questions that
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I get when it comes to money and finance. So here we
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Why do wealthy people insist on having multiple streams
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Wealthy people wanna have multiple streams of income because we
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wanna fortify and diversify our income streams
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because it does give you a very strong financial position because
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it's in the nature of businesses to go through various seasons and you
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don't wanna be wiped out completely. So when you build one business, it's
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pretty sensible and prevalent to be actually run another business off the
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back of it. So generally a great business will flywheel another
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business. And if you look at Apple, creates the iPhone, flywheels the
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App Store, flywheels Apple Music, flywheels the
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MacBook, there's flywheels off each one. So it's pretty normal and
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common for businesses to throw off more than one income stream. And
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it's just, if you get into the mindset you gotta build five or
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seven in one go, especially in different industries, it's a no-go
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zone. Don't do that. You're not gonna probably succeed in any. So build one well,
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and you'll find another opportunity within that framework to build another one, and another
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one, and another one. So diversify your income like you diversify your assets. You
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It's best to invest in productive assets. And
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productive assets are those that grow and develop cash flow
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and grow in value and throw off their own cash flow. So some
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productive asset examples are a small business grows in
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value, throws off cash flow, such as cafe, laundromat,
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gym, whatever small business you want to get involved in. Another one is real estate.
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So the real estate land value grows, but it also throws off cash flow
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from rent. So you can rent it out and get cash flow. And of course, larger
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companies, shares, you can buy shares in larger companies. Again, the
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value of the business grows in value and it throws off cash flow in dividends. But
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the most important part of a productive asset, even including a farm, is
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if you buy a productive asset and do nothing and come
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back 50 years later, it's produced tons more for
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society, it's grown in value, it's thrown off a ton of
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cash, you can diversify, do incredible things. The assets you
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want to avoid are assets that are unproductive. and they're only worth
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what some other fool is prepared to pay for them the next day. And
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some of those assets include cryptocurrencies, gold,
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a lot of trading. People think it's an asset, but they're buying and selling quite quickly.
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So, you know, assets that don't produce anything are
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Is there a best type of small business to
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There are better small businesses than others, and
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the type of small business you wanna get involved with, I
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think, well, the one I've personally got involved with myself has been small
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businesses that can scale without a lot of manpower, and
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also brick-and-mortar businesses that don't require a lot of staff, so very
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system-dependent type small businesses. Of course, businesses that
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are system-dependent instead of people-dependent, they're just easier to run, they're
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easier to scale, because people are hard to scale, and they tend
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to just be a bit simpler, but that's my personality. I prefer simple, scalable,
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and that's why I've leant towards online businesses and brick
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and mortar businesses that are systems dependent, not people dependent. And
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so that's my preference personally. Although if you love losing money,
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go get a restaurant business. Not all of them suck, of course, but they're
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a lot harder. So those types of businesses that you look at,
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their failure rate is very high, and also a lot of
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people to manage at the same time means you're gonna get smashed with HR,
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and you're also gonna be in a type of business that's very difficult to succeed
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in. And I think it's a matter of eliminating the hard stuff and finding
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what's more simple and effective and easier. So at the very outset, if
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you wanna buy or build a small business, choose
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your strategy. Like this is really hard,
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this is a lot easier, although both are difficult, but there's a clear winner. So
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just model success rather than modeling failure, I think.
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The dumbest investment I've seen someone make? I
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think the other day, I don't know the person personally, but they invested
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in the Huck Tour girls meme coin. And
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there's a guy, like my ex, and he invested a million bucks in
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the Huck Tour's meme coin. And he lost it all. She
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rug pulled everyone. And then he's like, oh my god, I lost my money.
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I'm like. You deserve to lose your money.
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What kind of moron puts his money into a haktua meme
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coin? Like how did you even come across that? I bet the money was inherited because
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it doesn't sound like you're someone who's smart enough to even create a million bucks. If you're doing that, you're
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an idiot. Like that and that happens. But I've heard all sorts of different stories like
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someone put their their money into like emus and
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like random stuff. Yeah, emus, actual emu farms, you
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can do that. It's not to beat up people that try the lesson is only
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invest in things you understand. So it has to be inside your circle of competence. And
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most people are trying to like go for the moonshot like crypto
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and jackpot and you know, Roulette, it's like
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you don't gamble, you want to invest. Buy productive assets,
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just keep it boring. The most valuable asset you can invest
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in is yourself. So cliche, isn't it?
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Yourself. But what I mean by yourself is your skill
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set. And what most people don't realize is that
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when you invest in yourself, so let's say I invested in a course,
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or coaching, or some program that
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enabled me to build skills, you can deploy
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those skills again and again and again on repeat to make money. So
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as long as you do the work and you deploy the skills and make the
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money, it makes a lot of sense to invest in yourself. And some of the best investments I've
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made in myself are going to Toastmasters to learn how to public speak because
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even next weekend I'm making money next weekend just doing a keynote. And that's
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just one example of how I've taken the skills and make money from them. And of
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course, doing this type of thing is also helpful as well. I remember when I was
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younger, my boss, there was an opportunity to do financial modeling on
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Excel at work. And I asked him to sponsor it, so I did the
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course, and I came back knowing how to financially model, and that made
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my position at work very irreplaceable. And it
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also helped me later on when I was assessing investments, running my
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own books. And there's so many examples I could
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use for how I've you know, paid for a mentor, a
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coach, a program, a course. I've spent the money
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and I've always eventually got it back plus 10x or 20x
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or 100x. Like your own skills by far are the best
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investment you can make. So bet on yourself, bet on yourself because
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as inflation grows and the world changes, your ability
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to learn and learn new skills will always outpace inflation
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and you will be able to deploy them forever. And I think that's a scalable, asset
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you want to get, which is you. Just quickly, if you're ready to take control of your
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finances but feel stuck on where to start, I have a solution. My
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book, Money Buys Happiness, simplifies investing and
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wealth building with practical steps to help you achieve financial peace.
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Get your copy via the link in the show notes and let's get your money working for
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Is there a brutal truth about debt that people don't want to
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A truth about debt that people probably want to accept is that it's actually
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very effective sometimes and you don't want to steer away from
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it. The brutal truth for those people who have debt that's been used
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for expenses and consumer goods, they're
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going to figure out pretty quickly that that was a bad decision. So
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the difference between good debt and bad debt is good debt is the cheapest debt you can get hold of.
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It's what you do with the money you get from the debt that matters, which is like, what asset
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are you buying with the debt? Most people just try and buy shoes with it
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or whatever it is. That's not going to work out good for you. You want to buy a productive asset that
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produces income that pays off the debt, which is a good
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What's the worst money advice that keeps people poor? Oh
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man, that's such a great question because in my mind, someone
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who doesn't have any money is broke. But
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someone who doesn't have a well-developed money mindset,
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is poor and broke people can get money back again, but poor people are
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always poor. They live in a poor paradigm and that
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poor paradigm can include working in a crappy job they
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hate, commuting three hours a day, never been able to get ahead, under
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stress all the time. So a poor lifestyle is
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what I would want to avoid. So the advice that
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people get that keeps them in that poor mentality, that
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middle class mediocrity, that area that's like commute,
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come home, this monotony, that's what I would call poor. And
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I think it's like, get a safe job, invest in
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your 401k, in your superannuation, and at age 65, retire
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for 10 years and leave your life. That advice is
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really what's keeping people from living a great life, and instead
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they have to settle for a poor life. Not just being poor, but
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a poor life. A life of unfulfillment, no
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adventure, and no excitement. And by the time they get to the
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age of 85, they realize that. So the advice is safety,
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How does traditional education and school systems contribute
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The way that school systems contribute to a broke mindset is they keep you within
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the rules. And to make money, you've got to break rules, never break the law,
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but break rules. And so school is very rule regimented, and
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it is very difficult to break through rules if you're so regimented and
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high compliance. So high compliance is yes sir, no sir,
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three bags full sir. And school like indoctrinates you
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to say yes, stay within the system, don't move out
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of the boundaries. And that's how it contributes to not being
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able to build wealth because wealth requires you to break boundaries. Requires you to
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break boundaries in relationships, break boundaries in certain entrepreneurship journeys,
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just to say even no to a career and shift again to something else. And
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so school really creates a lot of safety and rule bounds and
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I think that's a real problem when it comes to wealth because you gotta break out of the mold. You've
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got to do the opposite of the crowd. And all the things you learn in school as to how to
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play along with the crowd and how to play safe and say yes.
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And that's a real problem if you want to... build wealth.
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On top of that, they don't really teach any elements of wealth
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building because they don't know how because the teachers that are teaching haven't
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done it. So there's also a lack of curriculum that you can follow that
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does that. But not to beat Scott too much, you do learn to read, you
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do learn to write, and you do learn to add up and subtract. And when it comes to
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wealth building, they're the three things that you have to know that you get by grade
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How can people radically change their mindset around money? The
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most effective way to radically transform
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your money mindset is to actually change your environment.
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Because your environment will dictate your thoughts, which will
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dictate your feelings, which dictate your actions, and your
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actions dictate your results. So if you want to speed up
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the change in your mindset, just change your environment. Like
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you parents used to watch who you hung out with. It was very important because they knew if
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you're hanging out with five idiots, you'd become the sixth idiot. And so
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you don't want to be in an environment that's actually toxic for you or
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ineffective wealth behaviors because you will end up just, you'll be
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infected by that culture. You won't infect the culture. And
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so I would say changing your environment is by far the
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most radical way to do it. So a practical step to do that to give you
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an idea is you can start changing your environment who you listen to in the
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car on the way to work. Podcasts, audiobooks is the first step.
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Second step you can join a club, Toastmasters, something where people are growing
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and of course go to events. Go to Tony Robbins events, go to personal development events.
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Go to other people's events and of course eventually get around people in some sort
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of mentorship program, coaching program, whatever it is, but move yourself literally.
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Like sometimes that requires you to actually change where you live. So
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I have changed where I've actually lived in my life to escape the environment
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that wasn't good for me. It's very challenging. Sometimes you have to do it
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with friends, but it is for your own good. And if you make the
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change in your environment, you will radically transform your mindset with
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the least effort possible. I hope you enjoyed those questions when
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it comes to wealth. Of course, if you have extra questions, we'd love
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to see them in the comments. Pop your question below and we'll come back and
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answer it there. If not, hit the subscribe button and I'll see
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you on the next episode. Thanks for listening to Money Grows on Trees.
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miss an episode. And if you're serious about building wealth, make sure to
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check out the links in the show notes and follow me on all social media
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platforms at Lloyd James Ross for more. See