Alex Hormozi: Invest in Skills Over Stocks for True Wealth

0:00I have a brand new book called Make Money Easy. and if you're looking to create more financial freedom in your life, you want abundance in your life and you want to stop making money hard in your life, but you wanna make it easier, you wanna make it flow, you wanna feel abundant, then make sure to go to makemoneyeasybook.com right now and get yourself a copy. I really think this is gonna help you transform your relationship with money this moment moving forward. We have some big guests and content coming up. Make sure you're following and stay tuned to this episode of The Daily Motivation Show.

0:38Hi, my name is Lewis Howes and welcome to The Daily Motivation Show.

0:50If someone only has a few thousand dollars a year extra to spend on something, what's more important for them to invest it in the stock market or real estate or to invest in themselves you know where i'm going with this one um so my favorite ism that i that i like is don't invest in the s p 500 it's invest in the s me 500 because you will get so much more on active income by investing the small amount you have into increasing your earning capacity than you ever like just think about the dollars here so let's say that you had one thousand dollars all right saved up if you if you invest in apple whatever or you've asked it like you you'll have a 20 gain this year a 30 gain this year okay great so now you have one thousand three hundred dollars but one thousand dollars can teach you a new lesson or a new skill that can take your earning capacity because if you only have a thousand dollars saved up you either make very little money or you don't you're not following the first rule which is you got to spend way less than you make right and so if you're if you're on the i don't make a lot of money's part by the way you can still definitely save more but if you're on the i don't make a lot of money part then doubling your earning capacity would by the end of the year you might have thirty thousand dollars saved up rather than one or thirteen hundred in the alternative scenario it's not even close it's an order of magnitude it's not even close but everyone everyone's afraid of work and everyone wants to get rich quick which is why lotteries continue to make money and so if you can just get out of that basic fallacy that you're somehow going to get lucky.

2:19I would rather get rich for sure and be willing to, like, that's for me. Like success insurance is extending the time horizon and being willing to learn skills along the way. That's success insurance. Because play out the other scenario. If you actually do hit the lottery, you also lose it because you don't have the skills to keep it. It's true. So the other path is pure fallacious thinking. It's false. It's a false dream. It's never going to result in wealth. If you get rich quick, you get poor even faster. hmm we've already said that again if you get rich quick you get poor even faster why because you don't it's so my favorite magic card hold on i'm gonna bring it back my favorite magic card was this card called burning wish and magic the gathering and the sub the the flavor text on the card said she wished for a weapon but not the skill to wield it and i always love that text because i thought about that as as business as money it's like we wish for money but not the skill to wield it because money is just a potential for exchange and so if you don't know how to make it, then everything you have is just enough that's going to go down because you also don't know how to multiply it if you got lucky.

3:22Because anybody who wants to get rich quick only is relying on luck. You're relying on chance. You're gambling. You're not investing. And so if you want to play the game, and unfortunately, the tweets, the Instagram posts, the whatever, we see someone's screenshot when they go from$10 ,000 to$1.5 million. You just don't see the other hundred people or a thousand people who put 10 ,000 and went to a dollar. And so the idea is I want to get rich for sure. And the surefire way to get rich. And the reason all these billionaires get up there and they say, Hey, uh, just invest in skills. And it was like, sure.

3:56It's because that's the only thing that protects you. And I come from a country or my father goes from a country rather, um, where my family, everything we have is taken from us by the government. And so it's very real. that you may have to start over halfway through your life at zero. And if you do lose it all, the only thing you have is what you can do with your brains and your hands. And so my grandfather, who I was very, very close with, used to always say, you have two hands and one brain, use them. And my father came here with a thousand dollars and he built the life that he has now. He's a doctor.

4:31But that was only possible because he had skills. And even though everything was taken, land, houses, everything was taken. You can't take no divorce, no tax, no government can confiscate who you are and what you can do. And I see that as the ultimate freedom and independence of excellence and representation of excellence. If someone has skills, but they have a bad relationship with money, or they have money wounds, or they have money beliefs that they live in fear around whenever they receive money, are they able to earn and make a lot with those money wounds yeah and so i will i will first up i don't know what money wounds are but i will if i can define it the way i would define what you're saying yes is so it's like bad money beliefs money wounds money trauma bad energy all of that i'd bucket into bad behaviors under specific conditions which is that you don't know how to behave with money that's all it is

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6:24Again, have an amazing day and I'll see you tomorrow with another episode of the Daily Motivation Show.