How To Flip $1000 Into $100,000 | Grant Cardone EP 297

0:00Hi, my name is Lewis Howes and welcome to the Daily Motivation show.

0:10I firmly believe that taking charge of your mindset allows you to be in the driver's seat of your life and unlock your potential. And that's why I'm thrilled to share that my new book is out right now. It's called The Greatness Mindset. In it, you'll learn how to build a plan for greatness through powerful exercises and toolkits designed to propel your life forward. This is the book that I wish I had 20 years ago. It's everything I've learned in the last decade with the research and the science to help you unlock your mind. Make sure to go to lewishouse.com slash 2023mindset to pick up your copy of my book, The Greatness Mindset, today.

0:50If someone's got between 1 ,000 and 10 ,000 and they're trying to multiply it to 100 ,000, what would be the steps they would take? How long do you think it would take them to go from 1 ,000 or 10 ,000 to multiply? And would you say put that all in your own personal investment? Would you invest in the business that you're in? Would you invest it in other things that cash flow, appreciate and provide tax shelters? What would you do? If you got$1 ,000, I would like just, you know, keep investing in yourself until you got another$1 ,000. Okay. You know, now you got$2 ,000. You should start making money faster.

1:22At some point, you should start like every time you make an investment in yourself, if I put fuel in my car, it's supposed to take me further. You know, I think you just got to keep investing in you until like, oh, now I'm making$3 ,000. Okay, boom reinvest all that again. But what we do is we start taking it off the table, right? We save it. We don't invest it. So I think people just need to get on that cycle of like, okay, I'm going to keep repeating this activity. I'm going to reinvest some money in myself, go to the workshop or whatever. Monday, I got to be hustling again until, okay, now I got$4 ,000.

1:51Okay, now I got$5 ,000. Now the income is starting to pick up. Income has to pick up. The income should be an indication that whatever you're learning is helping you. That's interesting. Until one day you're like, okay, I have more money here than I can actually invest in myself. I can't like there's nothing I can go to to get rid of this money. You need to get rid of that money though. All my free time is going to my workshops. I don't have more free time to invest in me. I'm developing skills. I'm working. I'm earning more. Now what's the next step? Yeah. I wouldn't go look for an investment right now.

2:21I'm going to spend money on marketing now. Now I'm going to spend money on marketing to get me more leads. A big mistake I made in my career was not spending more money on marketing. When I was selling cars, I should have been spending money on ads. But I was scared, man. So what made you not scared 25 years later, 26 years later, at 51? I started studying, hey, what do all these successful people have in common? Whether it was the mattress dealer, the car dealer, the furniture dealer, or Elon Musk. They spend money, man. You know, they spend money. They spend a lot of money. And they don't worry about money the way I was worried about it.

2:52They used money, you know. They used it. They didn't save it. They didn't hoard money. And the greatest companies on this planet today, the ones that have just like some of these companies have lost money for 25 years. Look at Amazon. Reinvest. 1.7 million employees. When I started, I remember I looked at Ernst Young. I said, I have a buddy that worked at Ernst Young. I said, how many employees you got? He's like 240 ,000. Wow. And I'm worried about 10 people. What am I thinking? So when I quit studying individuals and started studying people, everything shifted for me. When I quit worrying about what Bob was doing or Pete or whoever, I started saying, hey, man, what is this big company doing?

3:33Because that also relieved me of being competitive with this guy, Pete. And started saying, okay, I'm going to go do what Coca-Cola does. That's when I bought the plane. I studied what Coca-Cola was doing. They bought planes. I said, why are they buying planes? Oh, then I learned how they write them off. And then I learned how they trade them every three years. So notice every three years, I'm trading a plane. I'm getting rid of it, replacing it with another one. But what are they using it for? They don't use it for pleasure. They're not using it for Instagram photos. They're using it to go and set up headquarters in other countries.

4:03Wow. You know, so that's when I wrote, if you're not first, you're last. Because when I started studying these companies, I'm like, Coca-Cola is everywhere. You can't go anyplace and not see Coca-Cola. I was like this big. I was always thinking about what can I keep? And they were thinking about how many shells can we get on? How many eyeballs can we see? Let's say you had the right information at 25. Let's just say you had a rich uncle that did what these people did and you got to witness this. Do you think that you wouldn't have been able to get there faster? Yeah, 1 ,000%. Or do you feel like money only comes to you when you're ready for it?

4:37When you're ready to make it and when you're ready to take on the risk or the responsibility? Sabrina will never make the mistakes I make, okay? Because she won't get in the wrong car. I got in the wrong vehicle. I didn't know. The vehicle I got in when I was 28 years old, I could actually make$100 ,000 a year doing this. So if I was 28 again today, I mean, I would know what industries to pick. Top three industries to pick. Hedge funds have to be one of them. Advertising and marketing has got to be a space to be in. And probably, you know, something to do with health care, if I can scale health care.

5:08The organic alternative medicines. When I saw the first interview with Jeff, when he was saying he was studying algorithms, selling stocks. Before Amazon. Yeah, before Amazon. He saw something came across his desk where there was a spike in Internet activity. I've always gone to the internet. That's when he said, I'm going to go do Amazon. And he followed traffic. I didn't ever follow traffic. He followed scale. He followed scaling possibilities. And then what did he do? He followed the traffic, the possibility. Then he invested in the possibility. And then he went into debt on the possibility.

5:40And then he was willing to not get paid any money. But what did I do? I need money today. I got to have money this week. I need to have a little more money next week. And if I get a little more money after that, I'm going to save it all. And then I'm going to go do that again. and I'm going to feed the bank and I'm going to keep feeding the bank. I don't even know how much money the bank's made off of me for 25 years. What about a family that's thinking, you know, I really feel comfortable having six months to a year of savings because I got kids, I got, you know, the rent, I got all the bills.

6:06What do you say to someone who's like, you know what, I see where you're coming from, but maybe I don't feel that comfortable yet. Well, they're stacking information on top of bad information. The money that you have saved in the last six months has probably dropped 11%. So the money that you have, you got 100 grand, I got to have six months of savings. I need, you know,$4 ,000. My bills are$4 ,000 or$5 ,000 a month. I've got to have$30 ,000 in the bank. Got to have$30 ,000. But they really have$180 ,000. So first of all, I guarantee they have more than six months. And they don't even know it.

6:32Because they're living out of terror. It's not logic. You say it's logic. I need six months, but you've got three times more than you need. Number one. Number two, you've never had an emergency that costs you$30 ,000 in your lifetime. Very few people ever had that emergency. Everybody hears about it. Oh, yeah, my guy got in a bar. This happened, blah, blah, blah. But if you had assets, if you'd been investing in assets, you can always go use those assets for collateral to solve your cancer surgery. You can get a loan out from the bank. 100%. Or if you just took the money that you earned and keep reinvesting in assets that pay you, not assets that you wish one day will pay you, but assets that pay you every month.

7:12If you keep investing in that asset class, one day your cash flow will be your emergency account. My emergency account last month paid me a million six. my cash flow, my free cash flow. That's crazy. That's no work involved. That is not one second of one day. And that happens every single month in my place. That's been because I made a bunch of investments for the last 25 years. Right. End of every year, I dump all my cash out every year. I'm like, you need to get as close to zero as you can and replace it with assets that in January, if I dump out in December, January, I want a payment from that.

7:48It doesn't have to be a big payment. Just needs to be a drip off that asset. Something. Yeah. So I'm going to go, I'm not going to buy a cup because the cup won't pay me. So in December, I had a bunch of money. Boom. I'm like, take that cash, that garbage that you have already had a surplus of money. So if I can't buy two of these, I'm not going to buy one of them. If I can't write off some portion of it, I'm not going to buy it. If I can't do it out of passive income, I'm not going to touch it. Those are my criteria for making investments. Right. And it needs to cashflow. So I took a bunch of this cash that was sitting here just deteriorating, not providing me with safety, and took it and put it into this asset.

8:22And people are like, are you ridiculous? You paid that much money for that thing. Okay, we'll see.

8:32Thank you so much for listening to today's episode of The Daily Motivation, and I hope you have an amazing rest of your day. If you enjoyed this episode, make sure to click the link in the description that will take you to the full episode of our main podcast on the School of Greatness. And if you are loving the daily motivation, please follow us over on Apple Podcasts and Spotify and leave us a review over on Apple Podcasts right now. And if you want more exclusive content and ad-free listening experience, make sure to subscribe to our Greatness Plus channel on Apple Podcast right now. And if you want to get even more inspiration from our world-class guests and learn how to improve your life and take it to the next level, then make sure to sign up for the Greatness newsletter and get it delivered right to your inbox over at greatness.com slash newsletter.

9:28Again, have an amazing day and I'll see you tomorrow with another episode of the Daily Motivation Show.

9:40Thank you.