Latest / Money Grows on Trees / #248 - Reacting to the Wildest Money Tips Online

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#248 - Reacting to the Wildest Money Tips Online · Money Grows on Trees

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  The second sign that you're above average financially, you've got more
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  Three businesses I would never buy. Number one, restaurants.
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  So my parents asked me for 40 to 50K for a down payment
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  I'll do the same thing. No, don't do that. If you're a millionaire and you can afford to
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  I'm Lloyd James Ross, seven-figure investor and entrepreneur, and I've helped
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  thousands of business owners and professionals turn financial stress into
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  success. If you're stuck in old money habits, overwhelmed by investing,
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  or unsure where to start, this is for you. I'll give you the mindset
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  and strategies to take control, grow your wealth, and achieve
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  financial freedom. It's time to make your money work for you.
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  Now it's time to have some fun as we go into some reactions. This
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  is fun, where I actually react. Sophie sends me some funny reels
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  to react to. I'll react, give you my take, give you some value. Hope you find
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  The second sign that you're above average financially, you've got more
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  Actually, that's very true. There was some really important data that
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  came out yesterday that's super, Look at this, check this out, ready?
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  43% have less than 1,000 in savings. That's just come out
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  yesterday. So that's true, he's right. But over a third
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  of Americans have no savings at all. In fact, those with under
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  1,000, guess what the average is? 200 bucks. How can people
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  As in $0. Guys, toddlers have more money in
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  Toddlers are wealthier than the average adult. Far out. You were probably
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  the most wealthy when you were younger because you had no debt. So if
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  you're feeling like you're under the pinch, it's because you probably took on too much
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  debt. So debt reduction is a wonderful way to
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  get ahead and feel a lot wealthier. Well, the stats are 43% of people interviewed
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  had less than $1,000 in savings. The average bank balance under $1,000 was
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  $215. And 18% of people had nothing to fall back on. But
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  nothing. What the heck? If you lose your job, you're done. You can
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  Here's why you should stop going to the club. Guys, the club, in my opinion,
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  is the biggest time dump ever created. It is literally a
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  place where poor people go to frequent to escape from
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  the sad, uneventful lives. If you want to avoid this place,
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  It's terrible. I hate clubbing, never liked it. Had to do it when I was younger to
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  meet people, because it was before social media, but very expensive drinks,
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  can't have a conversation, full of narcissistic people. Drunk
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  people. Drunk people, yeah. Again, back
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  when I was younger, you kind of had to probably do it to meet people, but now social media exists and
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  you just don't have to. I think it's better to meet people in the gym. That's my feeling.
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  Yeah, building your wealth is about meeting someone and
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  you don't really want to meet them in the club. I don't think because I mean, people
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  do it because they want to have Dutch courage and get drunk before they can talk to someone. But yeah,
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  go meet him in the gym. Take him for a coffee. You can meet people on
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  Tinder. Anyway, this is a lot easier way to scale your connections in
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  the comments. Chill
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  bro, we go to the club once in a while to have fun and relax. How do you have fun in
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  a club? It's nothing to do, it's so boring. When I go to the club, it's really that's
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  so easy to get women. It's fun to relax unless you do. I like
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  being drunk and chilling with friends after work myself. All week, it's
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  a reward for hard work. When
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  did people decide that hard work was going to get them richer? Man, if you are
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  living for the weekends like this guy, I used to live for the weekends and
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  I was like, this is not going to get me richer. You know how many dreams go
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  to the club to die? Lots. You cannot be drinking every weekend
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  if you want to get ahead. Weekends for work when you want to get ahead too. That's
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  the bathwater method. This is how you buy a small business for $0 up
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  front. In the US right now, there are something like 11 million small
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  businesses for sale. Only one in 12 of
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  those small businesses will sell inside of any calendar year.
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  That means you have 11 small businesses left that will
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  never sell. At some point, the owners of those small businesses will
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  get tired, will get delinquent on payments, will need to move on. And so
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  they are going to throw the baby out with the bathwater. You
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  are going to be able to buy that business for $0. When
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  you shut down a business, it actually costs you money as
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  a small business owner. And so you are going to say, hey, Mr. Business Owner, why
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  don't you let me buy your business for a percentage of
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  the future profits by keeping it open? I will only
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  What she's talking about is called vendor financing where you go in and you actually
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  get the profits from the business to pay back the owner of what it cost to
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  buy the business. And vendor financing is super popular. You
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  can do it. The vendor has to be on board. But this is how you can do real estate
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  deals as well as small business deals. But you can also put
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  no money down and borrow the whole balance too. That's a possibility. We
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  bought a business, we had 5,000 down. So it's not quite zero, but
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  5,000 down was pretty good. We borrowed the balance and that's really all it took in cash
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  for us to get it going. So without a doubt, Cody Sanchez is correct. In
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  Australia, it's a bit harder than America, but yeah, totally possible.
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  Teenagers are being urged to start planning ahead. New
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  data shows those graduating high school this year will
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  have to save for around 21 years to afford a
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  Well, 21 years. You finish school when you're 7 to
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  18. 21 years is like 39. What? They need to be 39 before they can put a deposit for
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  a house. What if They started investing when
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  they were younger in shares and like quadrupled the amount they'd have.
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  They get there a lot faster because people get sucked into savings and savings are
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  slow. Why don't they invest in shares? That's an idea. And
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  then instead of buying a house like everyone else, why don't they buy a little business with
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  their share portfolio instead and get ahead and get financially independent and just way
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  better. That's a way better option than saving for 21 years
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  to buy bricks and mortar? There's just way better ways to build wealth
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  and become time rich. You've got to look for the new ways of wealth. So don't
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  be worried if you're young, there's a way out for you. Just quickly, if you're ready to take control of
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  your finances but feel stuck on where to start, I have a
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  solution. My book, Money Buys Happiness, simplifies investing
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  and 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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  Broke people should not go to destination weddings. Destination wedding
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  But when broke people go to a destination wedding, you know what you call that? more
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  Because even if you budgeted the money out of your income and used it, it's money
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  So effectively, I know a couple that borrowed money for their wedding. They
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  borrowed $60,000 for a wedding. That's a really dumb idea. It
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  sets up poor financial habits. And if you have a destination when you've been invited
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  to and you've got debt and you shouldn't be going, you're going to accumulate more debt. You
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  don't go, you just say, sorry, I cannot go. And you know what people having destination weddings
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  because I had a destination wedding, my wife and I got married in Thailand. And
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  those that didn't come because they couldn't, that's okay. We're totally okay with that. We
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  didn't want them to go into debt to come. And they can simply say no,
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  and they do. And we've had that. And so, yeah, I agree with Dave. Who
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  The money to go to a destination. You know, you asked me,
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  Hey Dave, doesn't pull any punches, does he? Good on
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  $10.90 for a block of cheese. $4.23 for a couple
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  of tomatoes. $3.70 for
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  the cheap lettuce. $3.60 for
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  literally the supermarket brand cheapest wholemeal
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  bread. Yeah, there you go. $6 for a plain
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  packet of butter. Isn't that
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  Bread used to be a dollar and so it's 300% and
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  inflation has not been, like they say it's not that. So there's a combination of
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  price gouging, there's a combination of inflation and
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  I think personally inflation is way higher than what they've said and
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  then we're being lied to. It's just obvious. So if
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  you're getting a situation where people can't eat, you're going to find them either leaving
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  the country or you're going to find them homeless and you're going to find them becoming more reliant
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  on social security, in which case we turn into a communist country. So
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  you choose what we want to become. But this is outrageous. This is just poor policy
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  from the government, frankly. Poor energy policy from the government, poor
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  housing policy from the government, poor leadership from the government. And now
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  we're all more dependent on the government. Something has to
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  change or this country will not be a country for very long. It'll be socialist, which
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  If you're a millionaire and you could afford to put 10K into
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  Bitcoin, you need to do it. Why? Well, I told you to buy Bitcoin when
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  it was a dollar, you didn't listen. So now I'm telling you to put in 10K.
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  10K. And if you do that, one day you're going to be very
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  Now, I know- You know what? You could put 10K into Bitcoin, But
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  that's just not going to, like, it's so uncertain of what that's going
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  to do. What you want to do is find assets you're going to put a lot of money
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  in and be very safe with it and sleep at night. Like, you couldn't
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  put a million, people said to me all the time, Lloyd, I'm in Bitcoin, how much? A thousand bucks?
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  I was like, you can't put a million bucks in it. So like, how are you going to scale it? Like,
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  I'd hate to have that much money in this thing. And it doesn't produce any income.
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  So how's it going to give you financial independence if it can't produce income? I
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  think this is terrible advice to put money in
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  Bitcoin. My God, the Bitcoin standard, blah, blah, blah.
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  But none of these people got rich with Bitcoin. None of them. They all got rich in a business.
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  None of them got rich in Bitcoin. They're getting rich off businesses. Buy
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  a business, put 10 grand. I made 5 million
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  bucks or more from a $10,000 investment
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  in a business. Bitcoin's not done that. I'm
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  gonna do that if I'd have put 10,000 in Bitcoin, maybe it would have I don't know had
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  a little bit more But it's not it's not the same the business can scale
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  you look at the Forbes top 400 list all of them got there through businesses So
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  there's a none got there through Bitcoin people look, you know Buy
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  Bitcoin go to his profile. Let's have a look at this guy Official account
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  of did one Bitcoin don't miss go to his Instagram. What's he selling on Bitcoin? He's
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  just advertising his business. That's the difference. The people who are
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  going to the gold hills to mine gold don't make money, but the people selling the shovels and
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  the pitchforks and the shovels and the spades to the miners, they make money.
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  Three businesses I would never buy. Number one, restaurants. They
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  I'd hate to own a restaurant. Like how many restaurants have you seen go out of
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  business? Plus they're very heavy on people, capital, leases, food,
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  quality, consumer behavior. Terrible. I'd never own a business. All
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  The average small business in the U.S. sells for around $800,000. The average
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  restaurant, $198,000. Because 60% fail in the
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  first year, 80% after four. No wonder banks don't loan
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  to restaurants. Hotels are not businesses. They're
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  Yeah, a lot of capital required to get into a hotel business.
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  I've got a friend of mine, she's done really well in the hotel business game, but they're motels and
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  she started small. I think there's value in that, if you can
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  start small. And the Gujaratis, the creator that
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  now own most holiday inns, they actually did well because they had large Indian
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  families. They could all live in the hotel and work there. So if you've got a competitive advantage, you
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  can do it, but it's not a business that I'd run into and it takes
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  Cash flow ain't enough to cover the real estate transaction. Think about these
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  things. They're expensive to run, and they're the only place where your customers
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  require your help 24-7. Then we've
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  got retail storefronts. Those businesses are awesome at one thing, making
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  I'd hate to be in retail, because number one, you're stuck there. Number two,
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  you get the beck and call of your customers that walk in, and you've got to work hard. And you've got
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  to get cost of goods in. You've got to go against consumer behavior. And
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  you know, you've ever been in a shopping center, and you never see people in a store.
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  And I'm convinced we're living in a simulation, because I know shopping malls where
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  there's stores that no one's ever been in. You go past it, no one ever in
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  You can use your base, you buy a season ahead of time and have to sell afterwards
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  I'd never buy any of these three businesses, no way. The businesses I
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  would buy are the ones I have. So I have online, we
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  market supplements online, we have online education business, we sell
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  books, courses and so forth. We have a laundromat business and
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  buy more and we have an events business. So there are four businesses and
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  I take the profits and I buy other public companies and businesses. That's
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  what I do. Businesses, that can
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  So my parents asked me for 40 to 50K for a down payment
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  for a second home. Oh God, no, don't do that. I'll do
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  the same thing. No, don't do that. 10 hours away from the rest of us siblings and
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  they don't have the down payment. So don't buy a house. The reason for
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  them not being able to move and be closer to us is my father is waiting
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  to finish five more years at his job to collect a pension and
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  they're wanting to have the flexibility to be closer but to have their
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  No, if they want to be closer, they can have some little weekenders and rent near
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  you for a bit and come and see you. They don't need to own a house there. And by the way,
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  if they want to get a house, sell the current one they're in and buy there. And why would they borrow the
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  money from you to buy a house? Like, no. And then you're stuck with your...
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  So what they're asking you is a couple of things. They've created a
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  set of principles for their life. We're going to stay here for
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  five more years. We don't want to be uncomfortable when we travel.
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  We want to have our own place. Problem is they're grown adults, but
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  they can't afford these principles they put into motion. So they come to
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  their 25 year old child and said, you make our dreams that we
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  can't afford. You make our principles concrete because we
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  Terrible parenting. It's gross. I would never do
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  that. No, they should step it up to the plate. I agree with
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  that 100% of what he says. Go him. All right, hope you enjoyed those reactions
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  and learned something from them and hope you had fun learning at the same time. So hey,
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  leave a comment below and share this if you got some value from it and I'll see
• 14:31
  you soon. Thanks for listening to Money Grows on Trees. If you enjoyed the
• 14:34
  episode, leave a five-star review on Apple Podcasts and Spotify and
• 14:38
  subscribe to us on YouTube so you never miss an episode. And
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  if you're serious about building wealth, make sure to check out the links in the show
• 14:45
  notes and follow me on all social media platforms, at