Latest / Money And Wealth With John Hope Bryant / Worker to Owner: Why Ownership Is the Real Key to Wealth

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Worker to Owner: Why Ownership Is the Real Key to Wealth · Money And Wealth With John Hope Bryant

• 0:00
  Speaker 1: Welcome to Money and Wealth with John O'Bryant, a production
• 0:03
  Speaker 1: of the Black Effect Podcast Network and iHeartRadio. Yo is
• 0:10
  Speaker 1: John O'Brien is the Money in Wealth podcast series, Season three,
• 0:15
  Speaker 1: twenty twenty six on the iHeartRadio platform Black Effect Network.
• 0:22
  Speaker 1: Let's get into another episode leading up to Capitalism for All,
• 0:26
  Speaker 1: my new book coming out in twenty twenty six on
• 0:30
  Speaker 1: the twodred and fifty anniversary for America, the one hundredth
• 0:34
  Speaker 1: anniversary of Black History Month, which is Carter G. Woodson.
• 0:40
  Speaker 1: But the two hundred and fiftieth anniversary of America and
• 0:44
  Speaker 1: the need for the country to figure out who it
• 0:47
  Speaker 1: wants to be when it grows up is a question
• 0:50
  Speaker 1: I'm going to try to help it answer with my
• 0:53
  Speaker 1: seventh book. This episode is from Worker to Own, how
• 1:01
  Speaker 1: Capitalism becomes for All. Let's get into this. Pull out
• 1:06
  Speaker 1: your pen, pull out your paper, pull out your iPhone,
• 1:09
  Speaker 1: your android, take notes. Let's get busy unpacking the system
• 1:14
  Speaker 1: and repacking it with you in mind, capitalism only works
• 1:18
  Speaker 1: when people can participate as owners and not just workers.
• 1:24
  Speaker 1: If the only role available to most people is labor,
• 1:27
  Speaker 1: the system breaks down, wages cap out, stress rises, resentment grows,
• 1:39
  Speaker 1: ownership changes everything. Nobody washes rental cars. Right, if you
• 1:44
  Speaker 1: drive the rental car and you're finished with it, it's got,
• 1:48
  Speaker 1: it's dirty, it's got. You can barely see out the
• 1:50
  Speaker 1: side windows because the film is just build it up
• 1:55
  Speaker 1: on it, and you can write your whole name on
• 2:00
  Speaker 1: the back windshield. You're going to return it to the owner.
• 2:04
  Speaker 1: Let them wash it. That's just human nature. Unless you're
• 2:07
  Speaker 1: just an extraordinarily unique human being. Nobody washes rental cars.
• 2:14
  Speaker 1: So ownership does change things that we bought. My mother
• 2:17
  Speaker 1: bought a house, missus Winnie the Smith, God rest her soul.
• 2:21
  Speaker 1: She bought a house, our first home, our first home notices.
• 2:24
  Speaker 1: I say that our first home in Compton, California. She
• 2:28
  Speaker 1: divorced my father. And it's amazing. When you buy a house,
• 2:31
  Speaker 1: you remember the address one five five two South Freightley,
• 2:35
  Speaker 1: right complin California. So today I wanted to talk about
• 2:42
  Speaker 1: how people moved from worker to owner and why that
• 2:46
  Speaker 1: transition is what makes capitalism work for everyone. My mother
• 2:50
  Speaker 1: worked an hourly job McDonald Dougla's Aircraft and Boing Aircraft.
• 2:54
  Speaker 1: She worked twelve dollars fifteen dollars an hour. She was
• 2:58
  Speaker 1: a worker, but she had an ownership mindset, and she
• 3:06
  Speaker 1: kept buying assets, stocks, bonds, treasury bills, then in real estate,
• 3:12
  Speaker 1: more real estate, buying and selling real estate, upgrading real estate,
• 3:17
  Speaker 1: helping her kids buy real estate, my sister and my brother.
• 3:22
  Speaker 1: It appreciated, allowed her optionality in her life, and ultimately
• 3:32
  Speaker 1: she passed away with a million dollar net worth. That's gangster, right.
• 3:41
  Speaker 1: And my mother had a will, and she put in
• 3:44
  Speaker 1: that will that anybody who protested the will was excluded
• 3:51
  Speaker 1: from it. And it got real silent, right, the whole family.
• 3:58
  Speaker 1: Just who were going to have things to say about
• 4:02
  Speaker 1: this will? My mother said, nothing, ownership matters. It allows
• 4:08
  Speaker 1: you to chart your course. And when you own your
• 4:10
  Speaker 1: destiny and you have your own agency, and you pour
• 4:13
  Speaker 1: that into a will, into insurance policies and wills and
• 4:17
  Speaker 1: trusts and things that determine or the trajectory of how
• 4:21
  Speaker 1: your ass is going to be used, the whole narrative
• 4:26
  Speaker 1: of your family aligns, and sustainability changes, optionality extends, and
• 4:36
  Speaker 1: generational wealth is possible. Ownership does all of that. So
• 4:42
  Speaker 1: this is why ownership is the real divide. And even
• 4:44
  Speaker 1: my mother was what you might call working class, but
• 4:49
  Speaker 1: she died with a million dollar net worth. She was
• 4:53
  Speaker 1: a millionaire working an hourly job with an eight hundred
• 4:56
  Speaker 1: and fifty four credit score doesn't go that high. Now
• 4:58
  Speaker 1: goes to about eight to fifty with the revisions and
• 5:01
  Speaker 1: credit scores. But my mother was top of the mark.
• 5:04
  Speaker 1: No one told her no. The biggest missus, Winnie the
• 5:08
  Speaker 1: Smith is her name. By the way, the biggest divide
• 5:10
  Speaker 1: in America is an effort. Okay, it's ownership. My friend
• 5:16
  Speaker 1: Michael Milkin would say that intelligence is equally distributed, but
• 5:20
  Speaker 1: opportunity is not. I want you to have an opportunity
• 5:23
  Speaker 1: to become an owner. Owners build equity, and in this
• 5:28
  Speaker 1: AI world you're going to have. Everybody's gonna have an
• 5:31
  Speaker 1: opportunity to own your own agency, to own a new business,
• 5:36
  Speaker 1: a new industry, to own the resetting of everything. I'll
• 5:40
  Speaker 1: come back to that in another parallel podcast of another day.
• 5:43
  Speaker 1: I'm going to do something with Van Jones as we
• 5:45
  Speaker 1: unpack hope AI and what that means to you. Let's
• 5:48
  Speaker 1: stay focused on traditional ownership here. So owners build equity,
• 5:55
  Speaker 1: workers earn wages. Again, that's why they call it making
• 5:58
  Speaker 1: a living. You make a living during the day, you
• 6:00
  Speaker 1: build wells in your sleep. Owners benefit from time. Workers
• 6:07
  Speaker 1: trade time. Not hating on workers. We need workers. I'm
• 6:12
  Speaker 1: trying to explain to you the difference between somebody who
• 6:17
  Speaker 1: writes a check and someone who cashes it. Someone who's
• 6:20
  Speaker 1: making a living and someone who's building a life. Cannot
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  Speaker 1: give an amen. Owners pass assets forward, workers start over
• 6:30
  Speaker 1: each generation. Capitalism isn't broken because people don't work hard.
• 6:40
  Speaker 1: It struggles because too few people can own. And then
• 6:43
  Speaker 1: people can't relate to capitalism because you don't see anybody
• 6:49
  Speaker 1: who looks like you who's an owner. So you then
• 6:51
  Speaker 1: rightly so resent it and begin to believe it's not
• 6:54
  Speaker 1: for you. Let's change that. There are four primary paths
• 6:58
  Speaker 1: into ownership. There aren't secrets, they're systems. Start number one,
• 7:08
  Speaker 1: one service, one customer, one contract. I want you to
• 7:17
  Speaker 1: start small, get reliable, build trust so you can start
• 7:25
  Speaker 1: a business. You can start something right. This is not
• 7:29
  Speaker 1: a secret. This is you know. This is the get
• 7:31
  Speaker 1: it done party. This is about moving into your agency,
• 7:36
  Speaker 1: your destiny. If all you have is you and your hustle,
• 7:40
  Speaker 1: here's a place that you can begin. This is what
• 7:44
  Speaker 1: happened with me, is how I did it. One service,
• 7:48
  Speaker 1: one customer one contract, start small, become reliable, build trust. Okay,
• 8:00
  Speaker 1: here's number two. By the first one will start second
• 8:04
  Speaker 1: path by So many business owners are aging out. The
• 8:09
  Speaker 1: children don't want the businesses. I've said this countless times,
• 8:12
  Speaker 1: as one hundred trillion dollars of wealth is going to
• 8:15
  Speaker 1: transfer in the next decade or so. The wives, the husbands,
• 8:21
  Speaker 1: the children wants the stocks, the bonds, the cash, the cars,
• 8:26
  Speaker 1: the vacation homes, precious metals, jewelry. They don't want the business.
• 8:36
  Speaker 1: It's too much work. So if it's one hundred trillion
• 8:41
  Speaker 1: dollars of wealth being transferred from baby boomers who are
• 8:44
  Speaker 1: all trying to go play golf at the same time
• 8:46
  Speaker 1: at age sixty five, white wealthy generalization, but it tends
• 8:51
  Speaker 1: to stick. White wealthy all trying to go play golf
• 8:54
  Speaker 1: at the same time. Maybe there's an opportunity for you
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  Speaker 1: to befriend one of these people and buy their business
• 9:01
  Speaker 1: because their kids don't want it. There's nothing wrong with
• 9:03
  Speaker 1: these businesses. They have cash flows, they have contracts, they
• 9:07
  Speaker 1: have name brands, they've got a real estate, they've got
• 9:10
  Speaker 1: customer lists. They might have seven figures of cash flow,
• 9:17
  Speaker 1: million dollars of cash flow, which means with a decent
• 9:21
  Speaker 1: profit margin, they you know they're a multi million dollar business.
• 9:25
  Speaker 1: You can buy and get a bank or finance or
• 9:28
  Speaker 1: private equity firmers or financing instrument firm to finance the
• 9:33
  Speaker 1: purchase in part with non recourse debt which means you
• 9:37
  Speaker 1: don't personally guarantee it, and maybe sometimes you get the
• 9:41
  Speaker 1: seller to take back the paper. Mean this seller financing.
• 9:46
  Speaker 1: This is a huge opportunity, and they're business brokers in
• 9:49
  Speaker 1: every city who are selling businesses. So that's where you
• 9:53
  Speaker 1: can start is talking to business brokers or just going
• 9:57
  Speaker 1: door to door literally and finding the person you think
• 10:01
  Speaker 1: is sixty five years of age or so and proposing
• 10:04
  Speaker 1: to buy their business after you get to know them.
• 10:07
  Speaker 1: I know this sounds simple, but this is exactly how
• 10:10
  Speaker 1: it works, or how it can work for you. So
• 10:20
  Speaker 1: many business owners are aging out, their children don't want
• 10:22
  Speaker 1: the businesses. That creates an opportunity for you. SBA financing
• 10:28
  Speaker 1: exists for this exact reason. You can go to a
• 10:32
  Speaker 1: bank and get SBA financing for small business administration through
• 10:37
  Speaker 1: the bank. The bank will take a bit more of
• 10:41
  Speaker 1: a risk because part of the loan is SBA guaranteed.
• 10:44
  Speaker 1: But I've just also just described why, why and how
• 10:47
  Speaker 1: it's ness whiskey for the bank anyway, because you're buying
• 10:50
  Speaker 1: existing cash flow. Okay. The third way is specialized Okay,
• 11:00
  Speaker 1: not general cleaning, hospital sanitation, Okay, something very specific, not it,
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  Speaker 1: municipal cybersecurity specialization. All this AI is going to go
• 11:17
  Speaker 1: be going on. Don't you need to know. There's gonna
• 11:20
  Speaker 1: be folks that need to be training AI, retraining AI, UH,
• 11:25
  Speaker 1: maintaining robotics, maintaining mechanical systems, rebuilding. I mean, it's gonna
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  Speaker 1: be all kinds of businesses specialize that will come out
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  Speaker 1: of this new movement in the technology and artificial intelligence.
• 11:40
  Speaker 1: You want it, You're interested in some of that. That's
• 11:42
  Speaker 1: gonna be a whole new boom of business opportunity in
• 11:45
  Speaker 1: wealth creation. Specialization increases margins, which is basically profitability and defensibility,
• 11:55
  Speaker 1: meaning it's like having your own Niche is hard for
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  Speaker 1: other businesses to compete against you because you have the
• 12:02
  Speaker 1: specialization of other people don't understand and can't easily compete with.
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  Speaker 1: You can't easily gain that same specialization. The fourth approach
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  Speaker 1: are roll ups small businesses centralized administration, increase efficiency. That's
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  Speaker 1: private equity without the noise. By the way, don't demonize
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  Speaker 1: private equity. It's literally when you invest in your friend's
• 12:38
  Speaker 1: pizza shop, or you help somebody buy somebody in your
• 12:42
  Speaker 1: family buy a house, help them with the down payment,
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  Speaker 1: what you just contributed is private equity. It's private equity.
• 12:51
  Speaker 1: It's just private equity. It's just that the private equity
• 12:55
  Speaker 1: we talk about or hear about is institutional on Wall Street.
• 12:58
  Speaker 1: But it's the same thing. When an NBA player, NFL
• 13:03
  Speaker 1: player finance is the car wash for his best friend,
• 13:06
  Speaker 1: he or she is put in private equity. It's just
• 13:11
  Speaker 1: this is just private equity without all the noise. Why
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  Speaker 1: cities are the most democratic platform and I don't mean
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  Speaker 1: democratic in a political sense. I mean in the level
• 13:23
  Speaker 1: playing full sense. Cities buy services publicly, right, I mean
• 13:28
  Speaker 1: they're not hidden their contracts. They often have what's called
• 13:31
  Speaker 1: an RFP requests for a proposal, which is publicly issued
• 13:37
  Speaker 1: and sometimes even announced in the newspaper, so everybody knows
• 13:41
  Speaker 1: what the service is, and everybody knows what the published
• 13:43
  Speaker 1: price is and the profitability is, and you get to
• 13:45
  Speaker 1: compete on the level playing field with everybody else, Procurement
• 13:51
  Speaker 1: is transparent with cities, Rules are published with cities, Contracts
• 13:58
  Speaker 1: are recurring with cities. Your cash flow You're gonna see
• 14:01
  Speaker 1: another podcast for me talking about cash flow. Watch out
• 14:06
  Speaker 1: for that one. Cities reward competence not connections. Again goes
• 14:15
  Speaker 1: back to the RFP requests for proposal and how they
• 14:19
  Speaker 1: have to bid for contracts in a transparent way. Now,
• 14:23
  Speaker 1: once you have a contract, yes, relationships matter, beget in
• 14:27
  Speaker 1: the contract. You don't need to be hooked up like
• 14:31
  Speaker 1: you do in most traditional businesses. Hooked up meaning somebody
• 14:36
  Speaker 1: likes you, somebody knows you. That's the way, the only
• 14:38
  Speaker 1: way you get in. This is a way anybody can
• 14:41
  Speaker 1: get in. If you show up, do the work, follow
• 14:45
  Speaker 1: the rules. You can stay in business for decades with
• 14:49
  Speaker 1: a city. And there are literally, I think it's three
• 14:53
  Speaker 1: or four thousand counties in America. There are tens of
• 14:57
  Speaker 1: thousands of cities in America. It might be one hundred thousands.
• 15:01
  Speaker 1: I mean, it's a huge number of cities and municipalities
• 15:04
  Speaker 1: in America. Fifty states and four thousand counties. I believe
• 15:10
  Speaker 1: in the countless cities. So literally, like don't just think
• 15:13
  Speaker 1: about La and New York and Atlanta. No, no, no,
• 15:17
  Speaker 1: what about Cummings, Georgia? What about Dawsonville, Georgia? What about Fresno, California? Like,
• 15:22
  Speaker 1: you want to go where no one else is banging
• 15:25
  Speaker 1: down the door, where you don't have a bunch of competition.
• 15:28
  Speaker 1: You want to you want to control that market, their
• 15:31
  Speaker 1: their money, cases, their checks cast like everybody else. Right.
• 15:38
  Speaker 1: So that's capitalism and its most practical point, Well, capitalism
• 15:43
  Speaker 1: for all really means for you, CAPLI, we're all. Doesn't
• 15:49
  Speaker 1: mean equal outcomes. Okay, I'm not guaranteeing you an outcome.
• 15:55
  Speaker 1: It means equal access to ownership, pathways and playing fields.
• 16:00
  Speaker 1: It means that that ladder of opportunity once again goes
• 16:04
  Speaker 1: down to the ground and you can grab a hold
• 16:06
  Speaker 1: of it and hustle up. It's a hand up, not
• 16:10
  Speaker 1: a handout. It means systems that reward value creation, not
• 16:15
  Speaker 1: just proximity to power. It means giving people a way
• 16:19
  Speaker 1: to build dignity, stability, and legacy that starts locally, often
• 16:26
  Speaker 1: with cities with essential services, with ownership. So your local
• 16:32
  Speaker 1: city could be a place for you to become the
• 16:35
  Speaker 1: millionaire next door. Is my point. Capitalism for all isn't
• 16:42
  Speaker 1: a slogan, people. It's a system, a system where people
• 16:47
  Speaker 1: can move from labor to ownership, from survival to stability,
• 16:56
  Speaker 1: from income making a living to legacy, building a life.
• 17:04
  Speaker 1: And it doesn't start on Wall Street. It may start
• 17:08
  Speaker 1: on your street. Do you know that ninety percent of
• 17:12
  Speaker 1: all GDP gross domestic product in this country, the income
• 17:16
  Speaker 1: of America? Do you know that ninety percent of it
• 17:21
  Speaker 1: comes from cities? So you wouldn't think about it. You
• 17:25
  Speaker 1: wouldn't think that's true, right, You wouldn't think based on
• 17:29
  Speaker 1: what you see on TV, what you're hearing every day,
• 17:33
  Speaker 1: you wouldn't think that it comes from cities. You think
• 17:35
  Speaker 1: that it all emanates from Washington, d C. Or maybe
• 17:40
  Speaker 1: you think it all comes from hygh finance or maybe
• 17:46
  Speaker 1: a few billionaires. Not true. Ninety of all GDP in
• 17:53
  Speaker 1: this country comes from cities. That's where I'm sending you.
• 18:02
  Speaker 1: That's what I'm unpacking for you. That's what I'm trying
• 18:07
  Speaker 1: to explain to you. You need to focus on and
• 18:14
  Speaker 1: you need to mine for opportunity. Your city council members,
• 18:23
  Speaker 1: your school board has a budget, who's doing their sanitation,
• 18:28
  Speaker 1: who's doing their IT services, who's doing their security services,
• 18:32
  Speaker 1: think about all the services. So the school system is
• 18:36
  Speaker 1: typically a separate business from the city of city Detroit City,
• 18:46
  Speaker 1: Detroit Public schools or Atlanta Public schools. I'll pick on
• 18:49
  Speaker 1: Atlanta Atlanta Public Schools and Los Angeles Public schools. I
• 18:57
  Speaker 1: can say talk about both that I live in one
• 19:00
  Speaker 1: city and lived in the other. That's a separate budget.
• 19:03
  Speaker 1: It's a separate business than the City of Atlanta government
• 19:07
  Speaker 1: in the City of La Government. Completely separate, separate budget,
• 19:11
  Speaker 1: separate opportunity for you. And again, the GDP of this country,
• 19:21
  Speaker 1: ninety point eight percent of all GDP comes from cities.
• 19:27
  Speaker 1: So are we looking for love and all the wrong places?
• 19:31
  Speaker 1: We're sitting here chasing the the flashy thing, the thing
• 19:39
  Speaker 1: that's shiny, the thing that's got all the attention, when
• 19:42
  Speaker 1: your opportunity to become a millionaire next door might literally
• 19:47
  Speaker 1: be right next door. So capitalism, again, is not a slogan,
• 19:53
  Speaker 1: it's not some fancy thing. It's a system. And I
• 19:55
  Speaker 1: want you to understand that system. Trying to unpack that
• 19:58
  Speaker 1: system for you and repack it with you. You in mind,
• 20:01
  Speaker 1: a system where people can move from labor to ownership,
• 20:04
  Speaker 1: from survival's ability from income legacy from Wall Street to
• 20:09
  Speaker 1: your street to main street. It starts next door in cities,
• 20:15
  Speaker 1: in communities, in businesses. People overlook. If you don't understand
• 20:23
  Speaker 1: the system, you can't master it. If you do understand
• 20:27
  Speaker 1: the system, you can access it, you can enter it.
• 20:31
  Speaker 1: I want this to stop being a mystery to you.
• 20:34
  Speaker 1: What if Malcolm X say, we've been bamboozled, we've been tricked,
• 20:36
  Speaker 1: we've been food, we've been a hood, we've been running up.
• 20:39
  Speaker 1: No one's ever explained this system to you. No one's
• 20:41
  Speaker 1: ever unpacked it and repacked it with you in mind.
• 20:44
  Speaker 1: You're not dumb, and you're not stupid. It's at most
• 20:47
  Speaker 1: is what you don't know, that you don't know but
• 20:48
  Speaker 1: you think you know. Let's remove the fall, remove the mystery,
• 20:56
  Speaker 1: and empower you with transformational change right inside of you
• 21:00
  Speaker 1: at scale. If you can enter it, you can own it.
• 21:07
  Speaker 1: And ownership is how capitalism finally works for all. It's
• 21:12
  Speaker 1: how it can work for you. America has a strange
• 21:17
  Speaker 1: relationship with wealth people. We celebrate the loud winds startups,
• 21:23
  Speaker 1: the startup exits, meaning that they sold the company, build
• 21:26
  Speaker 1: and sold the company, the viral moments. Of course, overnight
• 21:32
  Speaker 1: success stories. We admire visibility, we reward a tension, celebrity influencers,
• 21:43
  Speaker 1: reality TV stars, whatever. We confuse recognition with results. But
• 21:51
  Speaker 1: most wealth in this country wasn't built loudly. Go back
• 21:55
  Speaker 1: to my Millionaire next Door episode. Listen to that after
• 21:59
  Speaker 1: you listen to this. All these episodes sort of tie
• 22:02
  Speaker 1: in together and one builds on the other. This wealth
• 22:10
  Speaker 1: we're talking about, if a millionairet millionaire next door, and
• 22:12
  Speaker 1: most millionaire millionaires are millionaires next door type profiles, it
• 22:18
  Speaker 1: was built quietly, slowly, boringly. My brother Bishop td Jakes
• 22:24
  Speaker 1: Chairman td Jakes, Bishop td Jakes would say, let's make
• 22:29
  Speaker 1: boring sexy again. I've said let's make smart sexy again.
• 22:32
  Speaker 1: He's gone one step further, and I agree with him.
• 22:35
  Speaker 1: Let's get back to the fundamentals, the basics, the blocking
• 22:40
  Speaker 1: and tackling, and the basic infrastructure for success in your life.
• 22:45
  Speaker 1: The truth is, this cloud looks good on camera, but
• 22:51
  Speaker 1: cash flow keeps the lights on. Can I get an
• 22:54
  Speaker 1: amen as a church of what's happening now? And what
• 22:57
  Speaker 1: have you done for me lately? Today? I want to
• 23:02
  Speaker 1: talk about the boring path to Welsh not because it's exciting,
• 23:08
  Speaker 1: but because it works. You know, people admire the celebrity,
• 23:16
  Speaker 1: the recording artists or whatever. They may be hot for
• 23:18
  Speaker 1: two or three years, but that attorney, that accounting firm,
• 23:22
  Speaker 1: the finance company, the finance the houses and the cars
• 23:27
  Speaker 1: that celebrities. That personality may be hot for two or
• 23:30
  Speaker 1: three years, but that infrastructure I just mentioned they may
• 23:35
  Speaker 1: be going for twenty years. The new you know, financing,
• 23:38
  Speaker 1: providing support systems, some limousines, you know, jewelry whatever. For
• 23:44
  Speaker 1: the next round of quote hot relevant personalities. I'm not
• 23:48
  Speaker 1: hating on the hot relevant personalities. I'm saying you, if
• 23:52
  Speaker 1: you rock the mic, also think about owning it. So
• 24:00
  Speaker 1: if you ever felt like you were chasing the wrong scoreboard,
• 24:05
  Speaker 1: this episode is for you. Pull up a cup of coffee,
• 24:09
  Speaker 1: grab a cup of tea, grab a glass of wine.
• 24:12
  Speaker 1: Let's have a conversation. Here's what the millionaire next door
• 24:16
  Speaker 1: actually teaches us. You know what, researchers study millionaires across America.
• 24:23
  Speaker 1: They found something a little uncomfortable. Most of them didn't
• 24:27
  Speaker 1: look rich. Okay, By the way, rich is a contract.
• 24:31
  Speaker 1: You build wealth in your sleep. Parallel conversation, but as
• 24:34
  Speaker 1: separate says, stay focused rich. If you have a contract
• 24:38
  Speaker 1: you can get rich. Contract in the NBA, NFL professional sports,
• 24:42
  Speaker 1: contract at a city city, a city contract to produce,
• 24:47
  Speaker 1: to do sanitations, contract with a stadium to provide food services.
• 24:57
  Speaker 1: Any kind of a contract can a lot you to
• 25:00
  Speaker 1: get rich. And then you take that money from getting
• 25:02
  Speaker 1: rich cash flow and you build wealth. And that's how
• 25:05
  Speaker 1: you create generational sustainability. But I'm getting ahead of myself,
• 25:10
  Speaker 1: so they don't. The average millionaire does not look rich.
• 25:13
  Speaker 1: They live in average homes. They drove and drive use
• 25:19
  Speaker 1: cars by the way up until recently. Think about this now,
• 25:24
  Speaker 1: actually I have only bought one new car as in
• 25:28
  Speaker 1: off the lot new you think about this, I think
• 25:33
  Speaker 1: it was twenty nineteen. It was a forty two to
• 25:36
  Speaker 1: fifty truck. But all my really expensive cars are quality
• 25:40
  Speaker 1: pre owned. In other words, somebody bought the car and
• 25:44
  Speaker 1: it took and they took the depreciation hit, and I
• 25:47
  Speaker 1: bought the car for seventy five percent of what they
• 25:50
  Speaker 1: paid for what they paid for, and there's nothing wrong
• 25:52
  Speaker 1: with the car. It might have had two thousand miles
• 25:54
  Speaker 1: on it or something, and let them pay for that.
• 25:58
  Speaker 1: When when you draw a car off the lot, you
• 26:00
  Speaker 1: lose ten percent right away, anyway, just thinking about the
• 26:05
  Speaker 1: researchers that was done and how millionaires by used cars. Yeah,
• 26:08
  Speaker 1: that's that's literally me and I've got I love cars,
• 26:11
  Speaker 1: I've got a bunch of them. But even my race
• 26:13
  Speaker 1: car was not brand new, and I people know that
• 26:15
  Speaker 1: I raced cars. Even that was not brand new. Why
• 26:19
  Speaker 1: I get the same car at a fraction of the
• 26:22
  Speaker 1: price if somebody else pays for it new. They wear
• 26:26
  Speaker 1: practical clothes. Look at what I'm wearing now right, Nothing
• 26:29
  Speaker 1: fancy here. They ran, they run, they ran, run, sold
• 26:37
  Speaker 1: ordinary businesses. What made them wealthy wasn't extraordinary income. It
• 26:44
  Speaker 1: was ownership. They owned businesses, they owned cash flow, they
• 26:50
  Speaker 1: owned their decisions. All money is his freedom. They reinvest
• 26:55
  Speaker 1: profits instead of upgrading lifestyle. That was me all day,
• 27:00
  Speaker 1: my entire life. I reinvested, reinvested, reinvested in what I
• 27:07
  Speaker 1: was doing. I didn't take a salary. Heck, for my businesses,
• 27:12
  Speaker 1: I don't think I don't. I still don't take a salary,
• 27:14
  Speaker 1: and now I think about it. From my businesses. For
• 27:19
  Speaker 1: my for profit businesses, I don't take a salary. It's
• 27:22
  Speaker 1: all upside. My nonprofit pays a modest salary, but it
• 27:29
  Speaker 1: doesn't sustain my lifestyle. It's almost like a token from
• 27:33
  Speaker 1: them for my time. But I raised seventy million dollars
• 27:37
  Speaker 1: for them a year. We've deployed four and a half
• 27:39
  Speaker 1: billion dollars worth of capital. They're getting a pretty good deal.
• 27:43
  Speaker 1: They take the most of my time. But the thing
• 27:45
  Speaker 1: they build all my wealth, my businesses, doesn't pay me
• 27:47
  Speaker 1: a salary at all, but I get all the upside
• 27:49
  Speaker 1: net on capital gains and appreciation of the assets in
• 27:54
  Speaker 1: the business. And I took some of the profit from
• 27:57
  Speaker 1: the businesses, and I actually took care of some of
• 28:01
  Speaker 1: my employees, my senior leaders at Operation Hoped, not my
• 28:04
  Speaker 1: primary nonprofit, because I knew they couldn't get bonuses, they
• 28:08
  Speaker 1: could not do anything other than get a check cash flow.
• 28:12
  Speaker 1: They're you know, making a living. So I wanted to
• 28:15
  Speaker 1: help them build a life and gave them a million
• 28:18
  Speaker 1: dollar made a million dollar investment in them, gave them
• 28:22
  Speaker 1: a car that they they each going them got a
• 28:25
  Speaker 1: car that they always loved, and an investment account, so
• 28:28
  Speaker 1: they they knew they were not just living for the day,
• 28:30
  Speaker 1: but they're building for the future. And of course that
• 28:33
  Speaker 1: made them work harder at their jobs. So we all won.
• 28:36
  Speaker 1: Everybody won. But even that was not about me. That
• 28:40
  Speaker 1: was It wasn't about me flossing. It was about me
• 28:44
  Speaker 1: helping people fulfill their dreams and I and I can
• 28:48
  Speaker 1: only do that because I'm an owner. So living is
• 28:52
  Speaker 1: better an underestimated and overperformed than overestimated and underperformed. Live
• 28:56
  Speaker 1: below your means and you can do things. It's like
• 29:00
  Speaker 1: what I did with my employees in time. They avoided
• 29:05
  Speaker 1: debt that didn't produce income millionaires. They measured wealth by
• 29:12
  Speaker 1: net worth, not appearances. Most importantly, they didn't confuse income
• 29:19
  Speaker 1: with wealth. I've said this several times. I'm gonna say
• 29:22
  Speaker 1: it again. You make money during the day, you build
• 29:24
  Speaker 1: wealth in your sleep. If you miss some of this
• 29:30
  Speaker 1: or don't truly understand some of this, just hit replay.
• 29:34
  Speaker 1: That's the great thing about a podcast. You can replay
• 29:38
  Speaker 1: the episode. You can back it up, stop, take notes,
• 29:41
  Speaker 1: think about it, talk to your friends, talk to your
• 29:43
  Speaker 1: family members, replay it again until you get it. So
• 29:49
  Speaker 1: income pays bills, wealth creates options. So now let's deal
• 29:59
  Speaker 1: with cash flow versus clout. This is getting into it
• 30:02
  Speaker 1: now right. It's for all the folks who are watching
• 30:04
  Speaker 1: too many influencers online who are selling clout. Let's define
• 30:10
  Speaker 1: the difference here very clearly, right. Cloud is attention people
• 30:16
  Speaker 1: and adding inso to injury. The social media platforms own
• 30:20
  Speaker 1: your algorithms, algorithms you do not. They can shut you
• 30:25
  Speaker 1: off at any time. They control of the platforms. I'm
• 30:30
  Speaker 1: not saying you not to do it. I'm telling you
• 30:33
  Speaker 1: to understand what you're doing. So cloud is attention, cash
• 30:37
  Speaker 1: flow is control. Which one would you rather have? My
• 30:43
  Speaker 1: friend Tim Burt would say, do you want to be
• 30:46
  Speaker 1: famous or do you want to be dangerous? Intelligence makes
• 30:50
  Speaker 1: you dangerous. I'd rather be dangerous. Cloud spikes, cash flow compounds,
• 31:00
  Speaker 1: depends on platforms you don't own. Cash Flow depends on
• 31:05
  Speaker 1: customers you serve. Start to see the rhythm here. Cloud
• 31:14
  Speaker 1: is fragile. Repeat that cloud is fragile. Cash flow is resilient. Okay,
• 31:24
  Speaker 1: And here's the part that most people miss. Cash Flow
• 31:28
  Speaker 1: creates optionality. All money is is freedom do as you like.
• 31:34
  Speaker 1: But you can't be free unless you understand how the
• 31:37
  Speaker 1: system works and you create optionality for yourself. Most millionaires
• 31:41
  Speaker 1: have several streams of income coming in. They're not depending
• 31:46
  Speaker 1: on any one thing, which increases their level of optionality
• 31:49
  Speaker 1: and freedom. So cash flow lets you borrow, cash flow
• 31:55
  Speaker 1: lets you invest. Cash Flow lets you survive downturns in
• 32:00
  Speaker 1: the economy, in the market. Cash Flow list you say no.
• 32:07
  Speaker 1: Growing up, I want to say yes to everything, yes, yes, yes, yes, yes. Increasingly,
• 32:14
  Speaker 1: in order to focus on what's important, you got to
• 32:17
  Speaker 1: say no to the noise, the drama, people wasting your time.
• 32:20
  Speaker 1: I love being able to say, very respectfully, very decently, no,
• 32:25
  Speaker 1: thank you, appreciate that I'm going to do this. You
• 32:28
  Speaker 1: go do that. I'm good. I like I walk through
• 32:32
  Speaker 1: life consciously oblivious and most things around me because it
• 32:34
  Speaker 1: just doesn't matter. I'm just focused on the value I'm
• 32:38
  Speaker 1: trying to create. It allows you to say no. If
• 32:41
  Speaker 1: you're desperate, you say yes to everything. Clout might get
• 32:45
  Speaker 1: you applause. Cash flow gets you freedom. Can I get
• 32:50
  Speaker 1: an amen? This is the church of what's happening now?
• 32:53
  Speaker 1: And what have you done for me lately? So here's
• 32:56
  Speaker 1: why boring businesses win people. Businesses have advantages, and exciting
• 33:02
  Speaker 1: businesses just don't. They're predictable, they're essential. So if you're
• 33:12
  Speaker 1: running a club, it's not predictable a dance club. There's
• 33:17
  Speaker 1: a lot of things that are fancy. It's just not predictable.
• 33:22
  Speaker 1: But these businesses that I'm talking about, they check all
• 33:26
  Speaker 1: the boxes for wealth creation. They're predictable, they're essential, they're repeatable.
• 33:32
  Speaker 1: They don't depend on trends, they don't depend on hype cycles.
• 33:37
  Speaker 1: They don't depend on being discovered. Okay, they depend on
• 33:42
  Speaker 1: being needed. Let me explain. Nobody cancels the plumber. Okay,
• 33:50
  Speaker 1: the country needs fifty thousand plumbers minimum a year over
• 33:53
  Speaker 1: what they have right now. They need sixty thousand electricians
• 33:56
  Speaker 1: a year over what they have right now. You can't
• 33:59
  Speaker 1: a plumbing you can't ai an electrician right right. There's
• 34:06
  Speaker 1: an essential need in these businesses. In these trades are
• 34:11
  Speaker 1: often multimillion dollar enterprises pulling down high six figure incomes
• 34:15
  Speaker 1: every year. So don't hate on somebody in overalls. Nobody
• 34:23
  Speaker 1: disrupts trash collection. That's a private company doing that under
• 34:28
  Speaker 1: contract for the city of the county. Couldn't that be you.
• 34:34
  Speaker 1: Nobody replaces the HVAC heating you know, air conditioning services,
• 34:41
  Speaker 1: et cetera. Nobody replaces the HVAC with vibes you want,
• 34:48
  Speaker 1: you want the HVAC company out there when it's one
• 34:50
  Speaker 1: hundred and twenty degrees. You need that plump. You need
• 34:52
  Speaker 1: that air conditioning to work. You need you need the
• 34:55
  Speaker 1: heat to work in the code. You need the their
• 35:00
  Speaker 1: condition to work when it's hot. No questions asked. These
• 35:05
  Speaker 1: businesses quietly raise prices with inflation and nobody complains. They
• 35:12
  Speaker 1: quietly renew contracts, They quietly build balance sheets. A balance
• 35:19
  Speaker 1: sheet is you're basically what your asset sits on in
• 35:24
  Speaker 1: your business. I don't want to assume you know what
• 35:27
  Speaker 1: a balance sheet is. They don't go viral, they endure.
• 35:34
  Speaker 1: So how cash flow becomes wealth? How does that happen?
• 35:39
  Speaker 1: Cash Flow is the seed people. Wealth is the tree.
• 35:44
  Speaker 1: So the seed put in good soil produces in time.
• 35:49
  Speaker 1: The tree make money during the day. You build wealth
• 35:52
  Speaker 1: in your sleep. Here's the progression most people will never see.
• 35:57
  Speaker 1: Steady revenue leads to predictable expenses. Please write this down,
• 36:02
  Speaker 1: go back, talk with your friends, rinse and repeat. Okay,
• 36:05
  Speaker 1: this is very important. Steady revenue leads to predictable expenses.
• 36:10
  Speaker 1: Predictable expenses lead to reinvestment. Reinvestment leads to scale. Size.
• 36:20
  Speaker 1: Scale leads to credit access. Prime credit access is why
• 36:24
  Speaker 1: you can't tell you to keep your credit score up.
• 36:26
  Speaker 1: Your credit score is essentially your credit rating if you
• 36:30
  Speaker 1: were an institutional company like a bond rating or triple
• 36:33
  Speaker 1: A bonderating on Wall Street. Your credit score for most
• 36:37
  Speaker 1: small businesses is your personal scorecard on how you pay
• 36:42
  Speaker 1: your bills and how dependable you are, and that extends
• 36:44
  Speaker 1: to you, is going to extend to your your small business.
• 36:48
  Speaker 1: That's what the bank's gonna be looking for. Okay. Scale
• 36:53
  Speaker 1: leads to credit access. Credit access leads to asset ownership. Nobody,
• 37:00
  Speaker 1: no billionaire, no multimillionaire, no millionaire, no one hundred thousand are,
• 37:05
  Speaker 1: no city, no county, no government, no company succeeded without
• 37:09
  Speaker 1: good debt. Good dat is tied to something that appreciates.
• 37:13
  Speaker 1: Bad dad is tied to something that depreciates. I cover
• 37:16
  Speaker 1: that in detail on a separate podcast. Go back to
• 37:19
  Speaker 1: season one or two to check that out. So this
• 37:24
  Speaker 1: is how a plumber becomes a landlord. Okay, That's how
• 37:28
  Speaker 1: a contractor becomes an investor. That's how family businesses become
• 37:34
  Speaker 1: generational wealth, not overnight over time. Why this path works
• 37:42
  Speaker 1: for first generation of wealth very important here. If you
• 37:46
  Speaker 1: didn't inherit capital, this matters. Cash flow doesn't require permission.
• 37:55
  Speaker 1: It doesn't care where you went to school, it doesn't
• 37:59
  Speaker 1: care who you know. It doesn't reward hype, it rewards reliability.
• 38:08
  Speaker 1: That's why immigrants have built wealth and precisely this way.
• 38:13
  Speaker 1: Every wonder why sixty percent of all motels are run
• 38:16
  Speaker 1: and owned by my Indian brothers and sisters as in
• 38:19
  Speaker 1: from India. It's low cost of entry, high return, dependable
• 38:25
  Speaker 1: cash flow over time building wealth. Why are my Asian
• 38:30
  Speaker 1: brothers and sisters buying things and build owning businesses like
• 38:33
  Speaker 1: Neil salons and here product businesses? Same thing. Low barriers
• 38:38
  Speaker 1: of entry, low costs of entry, cost containment, high levels
• 38:44
  Speaker 1: of cash flow, which leads to wealth creation over time,
• 38:48
  Speaker 1: et cetera, et cetera, et cetera. So that's why working
• 38:52
  Speaker 1: class families have used this path to build wealth for generations.
• 38:59
  Speaker 1: Because it works. Now want it for you. But it's
• 39:05
  Speaker 1: not because this is easy, but because it was available.
• 39:09
  Speaker 1: This is like the open source version of capitalism and
• 39:13
  Speaker 1: free enterprise that not just is available to Wall Street,
• 39:18
  Speaker 1: was available to Main Street. It's available to you. It's accessible.
• 39:25
  Speaker 1: So here's some cheat sheets for you. If culture tells
• 39:34
  Speaker 1: you to look rich, resistant, if social media tells you
• 39:40
  Speaker 1: to chase attention. Question it. If somebody gives you a
• 39:46
  Speaker 1: free lunch is probably stale. Whatever. Look, love is work.
• 39:50
  Speaker 1: Nothing good comes easy, even in the dictionary. The word
• 39:53
  Speaker 1: success comes before the work work only in the dictionary
• 39:57
  Speaker 1: because it's alphabetical. Every place else, wor comes first. So
• 40:01
  Speaker 1: stop looking for the easy, slick, loud answer. It's probably wrong.
• 40:09
  Speaker 1: The boring path of wealth isn't glamorous, but it's dependable,
• 40:16
  Speaker 1: and it's how the millionaire next door got there. It's dependable,
• 40:23
  Speaker 1: and it depends on what works, and what works will
• 40:30
  Speaker 1: always be what's new. In the next iteration of this
• 40:40
  Speaker 1: Discover conversation, I want to step into how workers become
• 40:47
  Speaker 1: owners and how capitalism actually becomes for all. So now
• 40:54
  Speaker 1: I've talked to you about cash flow beating clout, I've
• 40:59
  Speaker 1: unpacked the millionaire next door. I've unpacked how you don't
• 41:05
  Speaker 1: have to think global you can think local. In fact,
• 41:09
  Speaker 1: ninety percent of GDP gross domestic product the income of
• 41:12
  Speaker 1: the country comes from cities, not from even the federal government.
• 41:17
  Speaker 1: I've made it approachable by having give you an idea
• 41:20
  Speaker 1: of how you can contract for a need with a
• 41:23
  Speaker 1: city or county, A municipality, not even a big city,
• 41:26
  Speaker 1: a small one. Go where no one else is looking.
• 41:30
  Speaker 1: I've tried to make this accessible to you and practical,
• 41:35
  Speaker 1: so you have a step one. Because real freedom doesn't
• 41:44
  Speaker 1: come from applause people, doesn't come from hype, doesn't come
• 41:49
  Speaker 1: from showing off. It comes from ownership. And the first
• 41:57
  Speaker 1: thing I need you to do is own your own narrative,
• 42:00
  Speaker 1: own your own knowledge, own your own pathway, own your
• 42:04
  Speaker 1: own agency, own your own business plan for your life,
• 42:11
  Speaker 1: and move on that thing with confidence, knowing that there's
• 42:17
  Speaker 1: a high probability it will bear meaningful fruit. This is
• 42:24
  Speaker 1: John O'Briant. This is the Money and Wealth podcast series,
• 42:29
  Speaker 1: season three on a Black Effect Network and iHeartRadio. This
• 42:35
  Speaker 1: is another mechanism for me to take a big idea
• 42:38
  Speaker 1: and crunch it, smash it down the ground, to put
• 42:44
  Speaker 1: it where as they say in the South, to put
• 42:46
  Speaker 1: it where the goats can get it. To make it accessible,
• 42:50
  Speaker 1: to make it not overwhelming, to allow you to get
• 42:53
  Speaker 1: your hands around it, pick it up and make it
• 42:55
  Speaker 1: your own, and decide where you're going to start in
• 43:00
  Speaker 1: this broad, deep well of opportunity called capitalism and free
• 43:05
  Speaker 1: enterprise for all, we haven't even got into how artificial
• 43:11
  Speaker 1: intelligence is going to literally change everything and there literally
• 43:17
  Speaker 1: are business opportunities everywhere that you can used to be
• 43:21
  Speaker 1: able to start for a million dollars or one hundred
• 43:23
  Speaker 1: thousand dollars, you'll be able to start for fifty bucks.
• 43:25
  Speaker 1: Used to you require ten people, now to just be one.
• 43:28
  Speaker 1: That's another podcast. I'll get into our breakdown the future
• 43:32
  Speaker 1: business opportunities on the other side of AI. Watched for that,
• 43:35
  Speaker 1: But for now, consume this, absorb this, play it back
• 43:40
  Speaker 1: to yourself until you get it hole and complete, and
• 43:44
  Speaker 1: go on social media and let me know whether you're
• 43:48
  Speaker 1: getting the memo, whether you understand what I'm putting down,
• 43:52
  Speaker 1: and what else you want me to cover. And of course,
• 43:55
  Speaker 1: order pre order your copy of Capitalism for All my
• 43:59
  Speaker 1: new book, Capitalism for All Inclusive Economics in the Future
• 44:02
  Speaker 1: Proofing of America. Go to Operation help dot orgon get
• 44:05
  Speaker 1: your scholarship for free financial coaching and counseling, and sign
• 44:08
  Speaker 1: up to the one Million Black Business Initiative to start
• 44:10
  Speaker 1: a business join us. On Green Socks Day, April thirtieth,
• 44:16
  Speaker 1: everybody in the country to put on a green sock
• 44:19
  Speaker 1: because it would it be nice if we actually agreed
• 44:22
  Speaker 1: on something for a change, versus arguing over red or
• 44:25
  Speaker 1: blue and black and white. My god, aren't we tired?
• 44:27
  Speaker 1: Aren't we exhausted from arguing about silly stuff. That's finding
• 44:31
  Speaker 1: something we can agree on. Green Socks Day. This is
• 44:35
  Speaker 1: a movement from civil rights to civil rights on the streets,
• 44:37
  Speaker 1: the sweets. This is the third reconstruction and it's all
• 44:40
  Speaker 1: about you. I want you to own you. Let's go.
• 44:46
  Speaker 1: This is John O'Brien. I'll see you in the next episode.
• 44:50
  Speaker 1: Money and Wealth with John O'Brien is a production of
• 44:53
  Speaker 1: the Black Effect Podcast Network. For more podcasts from the
• 44:56
  Speaker 1: Black Effect Podcast Network, visit the iHeartRadio app, Apple Podcasts,
• 45:01
  Speaker 1: or wherever you listen to your favorite shows.