Jaspreet Singh: Why Most People Stay Broke (Follow THIS 7-Step System to FINALLY Stop Living Paycheck-to-Paycheck!)

Episode Transcript
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Speaker 1 (00:00):
Between fifty five percent and seventy eight percent of Americans
have no money after I just pay my basic necessities.
Our system is so ripped for the rich and the
financially savvy, but we're never taught to be financially said.

Speaker 2 (00:15):
Hey, everyone, welcome back to On Purpose, the place you
come to become happier, healthier, and more healed, to have
a better relationship with yourself, with your partner, with your money.
And today's guest is one of your absolute favorites. He
came on the show three years ago, over two million views,
millions and millions of impressions across Instagram and TikTok as well.

(00:35):
We had to bring him back. I'm talking about the
one and only minority mindset, Esspree saying, just free. It
is so great to have you back. Last interview went ballistic,
the comments, the feedback. We had to have you back
in the chair, and I'm so grateful to be here
with you.

Speaker 1 (00:52):
Well, thank you, Jay, thank you to everybody for listening,
watching and means the world to me. And man, it's
great to see you after so long.

Speaker 2 (00:59):
Yes, I can't believe it, it's been so long. I
was telling my team it's like can't believe it take
us this long to get him.

Speaker 1 (01:03):
Back, you know, And I can't believe you've never been
to Detroit.

Speaker 2 (01:06):
I know that I need to figure out. Yeah, I was.
I was saying to just be for those of you
who are listening or watching our saying him that Eminem.
I've always been a massive Eminem fan, and so I
heard about Detroit so much growing up. And Big Schwan's
dear friend. He's been on the show like three or
four times. So I can't believe I haven't been to
Detroit yet.

Speaker 1 (01:23):
Yeah, and our office is in downtown Detroit. For those
they don't know there, we go there. And did you
grow up in Detroit? I did Metal Detroit?

Speaker 2 (01:29):
Okay, amazing, So that makes sense.

Speaker 1 (01:31):
Then yep, yep for close to home.

Speaker 2 (01:33):
But just really, let's dive in. The reason why I
love sitting down with you is because I feel the
advice is so practical, it's so tactical, and it's extremely honest.
And the first question I have for you is something
that I've really been experiencing when talking to people. And
I just went on tour. I was in fifteen cities
across North America. I don't know why we didn't come
to Detroit, but fifteen cities across North America and Canada.

(01:54):
And whenever I do that we were taking on purpose.
On tour, I sat down with people and listening to
people's questions, and something that I was really noticing was this,
if someone's living paycheck to paycheck, what's the very first
step they can take to break that cycle.

Speaker 1 (02:10):
Yeah. One of the most unfortunate things about money is
we use money every single day. It cost money to eat,
it cost may to feed other people. We go to
work to earn money, yet most of us are never
taught a thing about money. And so what happens to
so many people is we go to school to get
a good job, and now we go and get an income,

(02:32):
and I'm going to go and spend money, and that
recipe is a disaster. Just Statistically, the majority of Americans
are living paycheck to paycheck, and by majority it depends
on which study you read. It's somewhere between fifty five percent,
and some people say as high at seventy eight percent.
Of Americans have no money left over for a gift

(02:55):
of vacation, let alone and investment. After I just pay
my basic necessities and now the problem and question that
everyone has is why and how do I get out?
And in order to get out, because that's your question,
you have to understand the why because the reality and
this is going to sound harsh, but I learned this

(03:17):
the hard way. Our system is so rigged for the
rich and the financially savvy, but we're never taught to
be financially savvy. What do I mean? When you understand money,
it's much easier for you to get that money and

(03:38):
grow that money. When you don't understand it, you're the
one that's making everybody else rich. So in this system
where you are working to make money and spend money,
you're working to make everybody else rich except yourself. Why
Because the majority of America and really the world now

(04:00):
is I make money and I spend money, and every
dollar you spend is a dollar going into somebody else's pocket.
And in our society, we live in what's called a
credit based economy. What that means is if I make
one hundred dollars from my job, I have the ability
to spend that one hundred dollars plus more thanks to Visa, AMX, MasterCard,

(04:22):
Discover and all the other forms of debt out there.
And so if I go out and spend one hundred dollars,
I'm going to make you one hundred dollars richer. If
I spend one hundred dollars plus fifty dollars on my
credit card, I just made you one hundred and fifty
dollars richer. And so when we live in a society
that's built around spending, but more specifically credit based spending,

(04:42):
and you don't have that shield, that financial education, that
financial savviness to know what to do with their money, well,
now every corporation in the world, every bank in the world,
is going to hire the smartest marketers, the smartest MBAs
to get you to spend your money there because that's
going to make them rich. And you were going to
work just to pay bills, just to make them rich,

(05:02):
and now you never have a chance to get ahead.
So this system is designed this way. Now, how do
you get out? And the way you get out? We
can break it up into multiple steps now, and it
starts with step number one building the right mindset. So
I'm gonna break it up into seven steps. Step number
one is the mindset. And when it comes to mindset,

(05:25):
there are four different layers of this mindset that you
have to understand. Number one is I will become wealthy.
Number two is money is abundant. Number three is money
is a tool. Number four it's is my duty to
become wealthy. And the reason why I say that is
a lot of us grow up with some sort of
money trauma, some sort of money negativity. And people say

(05:50):
poverty is generational. Well, it's not that we have a
gene in our DNA saying you're going to be poor.
What it is is you grew up hearing money is bad,
money is evil. We don't have enough money. That's too
much money, We can't afford that. We hear these types
of things growing up, and so we start to normalize
those things that, oh, okay, as a kid, I can't
afford that trip to Disneyland. I can't afford these nice

(06:13):
things that I want. And then as you start to
get older, you start to have kids yourself. What happens
when your kids want nice things? We can't afford that.
That's too much money, that's beyond what we have, So
that gets passed down. It's that mindset that gets passed down.
So the first step is you need to change the
way you talk and say I will become wealthy. And

(06:34):
I did a little exercise. I used to guest teach
in Detroit public schools and it was a very tough
school district, very rough school district, and I would talk
to these kids about money. And I think we talked
about this in our last podcast, But one of the
things I would ask them is what is your dream car?
And many people would have dream cars of things like
Afford Focus or Dodge Challenger, and I would say, why

(06:57):
not a Bugatti? Why not a Rolls Royce. The answer
that I would get is somebody like me from my
background could never have a nice car like that. So
when you tell yourself I can't, I guarantee you can't,
which is why you have to start saying, oh, we'll
become wealthy. Number two is money is a tool. Many
people are scared to talk about money because we're insecure

(07:18):
about our own money. But the reality is money is
a tool that can amplify who you are. You give
a good person more money, they have a tool to
do more good. You give a bad person more money,
they have a tool to do more bad. Which is
why we need more good people with money and understanding
the hete. You know what, is just a tool that
can allow you to do more things to take better
care of family, your kids, your parents, and your community.

Speaker 2 (07:40):
Yeah. I think the challenge is we look at how
much we're worth as a sign of how much we
are worth. Right, Like, there's that idea of we're almost
looking at it. The reason we're uncomfortable or and secure
talking about money is because in some way we believe
society values us based on how much we make, and
certainly we may have started to value ourselves that way

(08:01):
as well.

Speaker 1 (08:02):
Well, this is one hundred percent true. And just take
a look at it from Instagram. Instagram has become a
highlight reel. I'm going to show my best self. But
we often don't look at it as somebody else's highlight reel.
We look at it as somebody else's average. And now,
let's say you're in a relationship. Your wife is now

(08:23):
on Instagram and she says, oh my god, this couple's
going to Cancun. Oh my god, look at this nice
house that this couple has. Oh my god, look at
the car he just got her. What's going to happen? Hey, hubbs, husband,
how come we can't have these nice things. What are
we doing wrong? How can we we feel the sense
of like I'm missing out? And so now we go

(08:43):
back to my money is my worth, But that's not true.
Money is one part of our lives, and you have
to understand that more money will allow you to fulfill
the financial part of our life, which is important. But
the only way you get there is by getting on
the same page about money and building that separation between

(09:06):
the emotional side of money and the logic side of money.
And that can be difficult because oftentimes, especially when we're
struggling with money, we're thinking emotionally, why is it that
the casinos are in the poorest neighborhoods. Why is it
that all these stores are designed to profit off of

(09:26):
people that don't have money. It's because when you don't
have money, man, it is easy to say, hey, let
me give you a dopamine hit, buy this nice pair
of shoes, buy this Gucci purse, buy this whatever thing
to the people that can at least afford it, because
it gives you that emotional rush, that oh, that spending therapy.

(09:48):
But that's the same thing that's keeping you broke. You
look rich, you feel better for the moment and then
you have to pay it back plus interest. And in
the beginning of this podcast has said our system is
designed to profit off of people that don't understand this. Well,
the reality is our system is designed to profit off
of keeping you poor. And it's going to sound harsh,

(10:11):
but the reality is banks profit when you are in debt.
The more debt you are in, the more money they make.
Corporations profit when you spend money, the more you spend,
the more they make. The government profits when you are
financially uneducated, because how you're going to pay the highest
taxes and you're going to be stuck relying on the government,
when in reality, when you become financially educated, you can

(10:33):
pay less money and taxes legally and not need those
same services per se from the government. That's why the
financial education is so important. But the only way you
can get there is if you can separate the emotional
side from the logic side. And it starts with that mindset.

Speaker 2 (10:52):
Money is a tool.

Speaker 1 (10:53):
Money is a tool. Yeah, and then it's number three,
money is abundant. This one is a tough one, but
it is one of the most powerful tools to become
financially successful. Let's say now, you make fifty thousand dollars
a year and you start to watch some financial education

(11:14):
content on YouTube and you're like, oh wow, I like
this idea to invest my money. And you've become extremely
aggressive and you find a way to live off of
forty thousand dollars and invest ten thousand dollars a year. Well,
what happens to a lot of people in this situation
is you say, you know what, Joss Breath, I want
to do more of this. I want to be more
of an investor because I can see that light at

(11:35):
the end of the tunnel. I'm going to live now
instead of off of forty thousand dollars a year, I'm
going to live off of thirty eight thousand dollars a
year and put aside twelve thousand. Then maybe I live
off of thirty seven thousand and I'm gonna invest thirteen thousand.
This is a scarcity mindset way of thinking, because you
think that there's a limited pie and you can just
squeeze more pennies out of the pie. I mean, everybody

(11:57):
on the internet talks about why you need to stop
digging straw stuff bucks so you can have five dollars
more to invest. Well, let's flip that just a little bit.
You make fifty thousand dollars a year, you're saving and
investing ten thousand. But what if now you work to
earn five hundred thousand dollars a year, and if you
were going to save and invest that same percentage of
your income. I means now you can save and invest

(12:20):
one hundred thousand dollars a year. Now, the first time
you hear that, your response is probably going to be just.
But if you are out of your mind, my boss
is not going to ten x my income. How am
I supposed to go from fifty grand to five hundred
thousand dollars a year? Are you bad? Word? Well, I
want you to take a step back. What do we
just say? I will become wealthy? Money is a tool.

(12:42):
Money is abundant. There's a lot of money in the world,
a lot of money. There's some people that make whatever
you make in a month. There are people that make
whatever you make in a week, there are people that
make whatever you make in a day, and there's probably
people that make whatever you're making in an hour. If
you start to ref frame the way you look at
money now you can start doing different things. Maybe you

(13:03):
start watching more YouTube videos on how do you earn
more money? Maybe you start to read books about it.
And maybe you don't get to five hundred thousand dollars
a year, but maybe you get eighty percent of the
way there, fifty percent of the way there, it's still
a lot further and you will never get there. Unlet's
you start thinking about money in terms of abundance. And finally,
it is my duty to become wealthy. In the Sick religion,

(13:25):
we have three main values. I'm not here to preach anything,
but there are three main fundamental tenets. Now I'm juppana
wan chakana gettny, which means remember God serve others before
you serve yourself and earn an honest living. It is,
in my belief, your duty to become financially successful so
you can take better care of yourself, better take care

(13:47):
of your family, and take better care of your community.
And once you can understand these things and change the
way you think. It's not easy, but if you can
work on that, listen to your podcast, listen to the
other stuff out there. Now you can move on to
step number two, which is learn the rules of money.
And again, I know we'll getting too the theoretical stuff.

(14:07):
Right after this, we'll talk about the practical side of
what do you actually do with their money. But you
have to learn the rules of money because one of
the things that I learned is that wealthy people understand
that money is a game, and every single person is
playing this money game. But the way that wealthy people
are playing the money games are very different than everybody else.

(14:30):
The average person thinks about money and how you attract
that money is I have to go to work and
have to earn this money. I have to work hard
to get this money. Now, you do have to work hard,
there's no way around that. But the way that wealthy
people and financially savvy people think about money is I'm
going to work hard, not to make the money, but
own an asset, and this asset is going to make
me more money. I'm going to work to own the

(14:52):
things that will keep paying me even after I stop working.
And that is a completely different way of thinking, because
the average person is thinking, if I can make a
little bit more money, I'm gonna drive a better car.
If I can make a little bit more money, I'm
gonna buy a better house. If I could get a bonus.
I'm gonna go on a vacation. If I could get
a nice raise, I'm gonna buy my wife a nice purse.

(15:15):
We think in terms of spending. Wealthy people think in
terms of investments. And there's three rules of money that
I learned that you have to understand. Number one is
that money flows to the investor. When I go to
Chipotle and I buy a bowl of extra guac, who

(15:37):
am I benefiting? Am I really supporting the employees? Yes,
in a way, because I will be paying their salary,
But the real profits are going to the owners of Chipotle.
It's going to the investors of Chipotle. Money. Rule Number
two is inflation benefits the investor. What does that mean.

(15:58):
Over the last five years, we've seen the prices of
things rise. This is because of inflation. Inflation didn't just
start after the pandemic. Has been happening for a long, long,
long time. And so you might have heard your grandparents
or parents say, when I was young, I used to
go to the movie theater for a nickel, a dollar,
whatever it might be. Now it's twenty five dollars to
go to a movie. This is inflation. So now when

(16:20):
you spend those more dollars at Chipotle. Who's getting those
more dollars. It's the owners of Chipotle, the investors. And
then finally is our system is designed to benefit the investor.
As a license attorney, who's at your attorney? I can
tell you that when you earn your money as an investor,
you are going to pay a lower tax rate than
when you earn your money as an employee. That's why

(16:43):
it is so important to understand the rules of money,
because our entire system is designed to make the financially
savvy wealthier while everybody else is paying the price. I'll
give you one more example. When I was in law school,
I learned about this concept called fiduciary duty. And what
I didn't understand, and what I learned is that the

(17:05):
CEO of a company, your boss, has a fiduciary duty
to make one person rich. Do you know who that is.
It's not the employees at the company, It's not the
customers at the company. It is the owners of the company,
the investors in the company. The CEO has to make
decisions to make the investors rich. And we're never taught

(17:26):
to become an investor. We're taught to become an employee. Now,
it's not bad to work a job. That's not what
I'm saying. In fact, that's probably the best thing for
most people. What I'm saying is you have to understand
that when you go to work, you now have to
take some of that money and become an investor. Now,
when you do that, now you can start to get
into the practical steps of what you do with your money. Yeah,

(17:46):
so we talked about Now step number one is you
have to build the mindset. Now you have to learn
the rules of money. Now we get into the practical side,
which is step number three. Get out of the financial
danger zone. And what I'm mean by that is the
very first thing you have to do is save two
thousand dollars as fast as possible.

Speaker 2 (18:07):
Just two thousand.

Speaker 1 (18:08):
Just start with two thousand as a start, and then
pay off your credit card debt. Half of America today
does not have one thousand dollars but aside to protect
them against emergency. So if your car breaks down, your
kid gets sick, your window breaks, the average person has

(18:31):
to go into debt to pay for that expense. You
have zero breathing room. If you want to go on vacation,
you want to do anything. You have to go into
debt to do that, So we need to stop that.
I call this the financial danger zone. You need to
save two thousand dollars as fast as possible, and the
way you can do that is by spending less or
working to earn more, and you have to make some
extreme sacrifice if you don't have that.

Speaker 2 (18:53):
Do you know what people are wasting the most amount
of money on right now in the United States? Is
there any research on that?

Speaker 1 (19:00):
Oh? Man, Well, if you are somebody who does not
have two thousand dollars saved up, there's a lot of
things you got to cut out. And this is going
to sound mean, but I don't say what I say
to make friends, to say what I say to help
people be better with money. You should not be eating
at a restaurant. You should not be going on vacations.
You should not be driving around in a fancy car.

(19:21):
You shouldn't be living in a big, fancy house right now.
You got to make some extreme sacrifices if you don't
have two thousand dollars. So much so that what I
tell people is you should not have a Netflix subscription,
not because it's going to save you fifteen dollars a month.
But because the average American is watching somewhere between two

(19:43):
to three hours of Netflix a day, if you don't
have two thousand dollars, how can you feel comfortable sitting
there at nighttime watching whatever the heck is on Netflix.
You have to have a little bit of urgency that,
oh my god, I got to take care of my family.
So whatever you can cut back on, do it. And
then once you get that two thousand dollars, pay off

(20:05):
your high interest credit card debts. Because when you are
in that situation where you have those high interest debts,
you are trying to climb a mountain with one thousand
pounds of chain strapped to your back. You're never gonna
get to the next step because anytime you get some money,
you got to pay it back off. In fact, let

(20:26):
me give you an example. Jay, If I gave you
six thousand, five hundred dollars today and you invested that
money today, you never touch that money again, you never
invested another penny again, and you could get a let's
say twenty percent return a year on that money. In
forty forty five years, you're going to retire very wealthy.
You're not gonna have a million dollars, five million dollars,

(20:48):
ten million dollars, fifty million dollars, You're gonna have closer
to sixty million dollars off of that one investment. Of
the six four hundred and six thousand, five hundred dollars
that I give you today. Are you going to say,
all right, sign me up, j just but you give
me that money and where do I invest it? Well,
here's the reality. Do you know who's getting those returns?
Amx Visa, MasterCard, Discover and do you know who's paying it?

Speaker 2 (21:12):
You?

Speaker 1 (21:13):
If you have credit card debt, and so instead of
you having that wealth, you are the one that's paying
for their private jets. You are the one that's paying
for their big buildings. You are the one that's paying
for their luxuries. Which is why I get so serious
about this that if you want to become wealthy, you
have to you have to you have to get out
of this financial danger zone. Once you get there, now

(21:36):
we can get to the next step, step number four.
This is where things out get fun because you finally
have a little bit of a foundation. Now you can
create a system for your money. The difference between wealthy
people and everybody else is wealthy people know what they're
going to do with their money before they earn it.
Everybody else gets the money, and then they wonder, well
what should I do? How should I spend this money?

(21:57):
And this is where it is very helpful to have
a system for your money. One that I teach is
a seventy five to fifteen to ten plan, which says,
for every dollar that you earn from here on out,
seventy five cents is the maximum that you can spend,
fifteen cents is the minimum that you invest, ten cents

(22:18):
is the minimum that you save. This way, whether you're
earning thirty thousand dollars a year, three hundred thousand dollars
a year, or three million dollars a year, you're always
going to have a rule of how much you can save, invest,
and spend. Break that down for us again, seventy five
fifteen ten. So the way I'd like you to do
this is I want you to open three bank accounts,

(22:39):
and you're going to make money. Money gets deposited into
one bank account, create an automatic withdrawal and deposit. That
money gets pulled out of one bank account, and fifteen
percent goes into your bank account holding your investment money.
Ten percent goes into your bank account holding your savings money.
The reason why you want to have three different bank
accounts is because if you have one hundred dollars in

(22:59):
one bank account and you think this is my investing
money and my saving money. You go into the store
and you see this nice sweater on sale, it's ninety dollars.
I have one hundred dollars in a bank account. Well,
I should be able to afford it, right, Well, you
forget that some of that money is supposed to be
saved and invested, and then you pay taxes on that sweater,
and now you spend ninety eight ninety nine dollars on

(23:19):
a sweater and oops, I just spent my savings and
my investment money, which is why you need the three
different bank accounts. Your savings are not going to make
you wealthy. This is a big lie that we've been sold.
Your savings are there to protect you, Your investments are
there to make you wealthy, and that spending money is
what you pay for your house, your groceries, or vocations
and everything else. Now we move on to the next

(23:42):
step is how do you spend your money smartly? And
this is where things start to get a little bit painful.
But this is where you can really accelerate your wealth.
You know how to spend your money now, you have
a good system. Now when it comes to actually accelerating
your wealth, you got to spend your money smartly. And
what I mean by that is no more financing things.
I don't put money in your and then follow the
rule of five when it comes to luxuries. So when

(24:04):
it comes to no more financing things, it's very normal.
You want to buy the new iPhone? Why would you
pay one thy twelve hundred dollars put it in fifty
dollars a month, zero percent APR. It's free money. Why
wouldn't you take it? Well, let me ask you a question.
If I walked into the bank today and I said,
give me a thousand dollars loan at zero percent APR,
what are they going to say? Heck, no, there's the door.

(24:28):
Why is it that somebody is willing to offer me
zero percent APR? Not just somebody a very profitable corporation
because they know how to make money off of you
with a zero percent APR. Why because at zero percent
APR number one is going to make it much easier
for you to buy the new iPhone more often. Number two,

(24:50):
you don't feel the pain of one thousand dollars leaving
your bank account. It's just fifty dollars a month. Number three,
when you buy the new phone, well, now they can
sell you the new airport, the new charger, the new
case for it. And then number four, they know that
a lot of people are not going to pay it
off in time, and now they're gonna slap on that
fifteen twenty twenty five percent interest, which then makes them

(25:10):
even wealthier. Which is why you should not be financing things,
even at zero percent EPR. If it doesn't put money
in your pocket, do not finance it. The only exception
is the house that you live in. And then by
rule of five, if you can't buy five of them,
you can't afford one of them, especially for luxuries.

Speaker 2 (25:27):
That's good rule.

Speaker 1 (25:28):
So you want to buy a nice one thousand dollars watch,
you better have five thousand dollars so of willing of
extra money. Now we can get into the next step,
which is how do you earn more money? This step
number six, because now we know how to create a
system with your money. You know that I'm gonna do
seventy five to fifteen ten. I know how to spend

(25:51):
my money. Now let me earn more money. And this
is the part that many people get flipped because they
assumed I just seed that to make some more money. Well,
if you make more money, well at knowing what to
do with that money, you make more money. Then you
make other people rich with it because you just go
and spend it. This is where now it is important
for you to figure out how can you earn more money.
Maybe you ask for a raise at your job, maybe
you get a second job, maybe you create your own business,

(26:11):
maybe you learn how to utilize artificial intelligence. You find
ways to earn more money. But you keep following that
system the seventy five fifteen ten, And that's the key
is as you earn more money, you keep investing more
money because that's what's going to make you wealthy. And
then finally at the top, step number seven is you
have to protect your assets. And there's two parts to this.

(26:35):
Number one is you got to understand the legal side.
That means understanding taxes, because taxes can be one of
the biggest expenses that you have to pay. You have
to understand how do you pass this wealth down. How
do you put shields around you? Because when people realize
you have money, they're going to want some of it
for themselves. And this also means how do you give back,
how do you help others? How are you going to
leave a legacy for yourself and your family. That's now

(26:59):
wealth planning. And so we talked about not kind of
the whole progression of these seven steps, but it starts
with that mental side of understanding the mindset. Then you
got to understand the framework of the rules of money.
Then we start with the basics of saving the two
thousand pain off the credit card. That then you build
a system for your money from there. Once you have
the system, you have to know how to spend your
money the right way. Then you have to learn how

(27:20):
to earn more money the right way. Then you learn
how to manage your wealth, grow your wealth, and pass
on your wealth.

Speaker 2 (27:27):
Yeah, that is a really brilliant system. I mean, that's
a master class truly.

Speaker 1 (27:32):
You call it the Climb to Wealth.

Speaker 2 (27:33):
Yeah, it's brilliant. It's so great, And I love that
it goes from I love that you start with the
mindset and then switch into the practicals of money because
if you took all the practical stuff and people didn't
have the mindset. You'll make mistakes and you'll actually put
your money in the wrong places. And if you only
have the philosophy and the mindset and don't have the practicals,

(27:53):
well then it's just a nice idea. The big question
that comes to my mind right now is for anyone

(28:16):
who's like, just free, I'm making that fifty thousand dollars.
I'm making that thirty thousand dollars. I want to make
more money right now. What is the fastest, most effective,
realistic way I can make more money today so that
I have more of this seventy five fifteen ten split
to ultimately invest more. What do you recommend I do
in this day and age right now?

Speaker 1 (28:37):
Can I recommend what you shouldn't do too? Yeah, so
I talk about investing around that is My focus is
the financial side of what do you do with that money?
And so I was actually just doing a conversation with
somebody about this. Where a lot of people who end
up in a tough financial situation, whatever it might be.
Maybe you have debts, you have expenses, you have your

(28:58):
in situation where money is tight, you go onto the internet,
and now you start to hear about this topic called
passive income, and now you think, wow, if I could
just have some more money coming in passively, I could
pay my bills and no longer have to worry about money.
But that's not how it works. Investing and everything that

(29:21):
I'm talking about when it comes to growing your wealth
is when you have extra money that you don't need
and you throw it into this investment. You throw it
into this asset that is going to then grow and
make you more money. It is not fast, but if
you do it right, it works and it can make
you wealthy. And that's how that works. Your question was

(29:45):
how can somebody start to earn more money fast? And
the first thing that you can do ask your boss
for a raise. But don't do it the way most
people do it, because what most people will say is, hey, boss,
working it for a long time, can I get an
extra five thousand dollars a year, ten thousand dollars a year,
whatever it might be. And well, what your boss is

(30:08):
probably going to say is no, because I'm going to
pay you to do the same thing. No. Instead, I
want you to think about it from their perspective. The
fastest way for you to make more money at your
job is to make your boss more money. And if
you can show them, hey, I'm going to make you
an extra twenty thousand dollars a year. You pay me

(30:28):
an extra ten thousand dollars a year. Now, they will
probably say yes because you are adding more value to them.
How can you do that. It's going to depend on
your position, But find a way to add more value
and go to them and say, hey, look, here's what
I'm going to do. Here's how much more revenue I'm
going to drive, Here's how much more money I'm going
to make you. I just want a piece of what
I'm going to make you. Some people are going to

(30:49):
say that and say wow, I like that idea. Others
are going to say screw that. I don't want to
make my boss Richard. Okay, then well you can try
to do something for yourself. And today AI is probably
not probably it is the biggest opportunity that we have
at our fingertips. It is growing faster than the rate

(31:09):
of the Internet. It's growing faster than the adoption of blockchain.
And most people think that AI is how do I
go on to chat, GPT and search guacamole recipes. But
if you can understand AI, you can get ahead of
the curve and solve a problem for many businesses or

(31:29):
people with money. Help them understand it, help them use it,
and in exchange, you charge them money to do that.
And there's so many ways to do it. I mean,
this is going to get into how do you actually
make money? How do you build a business. But if
you can find a pain point. For example, dentists have
a pain point, which is that patients don't show up

(31:51):
for their services. Well, you can use AI to help
solve that pain point. What can you do if you
can show these dental offices, Hey, let me build you
inn AI tool that will automatically text your patients when
they have an appointment, and it will say if you
can't make it, click this button. If they can't make it,
and you click the button, the AI tool will then

(32:12):
work to find somebody else who's on the waiting list
to come in and fill that slot. Well, now, all
of a sudden, you helped that dentist office fill more
the slots, have less vacancies and make more money. And
then you could take a one step further. After they're
done with the procedure, send out an automatic text message
saying did you like your service? How was it? If

(32:34):
you enjoyed it, give us a five star review on Google,
which is going to help drive more patients for the
dentist office. And so that's the thing is people assume, well,
I'm just going to go teach AI. I'm going to
go help. It's too broad get specific. There are every
business in the world should be using AI to some way,
shape or form. Most people have no idea how it works.

(32:56):
If you have some time, study it, learn and if
you can figure out one pain point, go out and
solve it for one person. Let there'd be a testimony
for the second that there'd be a testimonial for the third,
and now all of a sudden, you're in business.

Speaker 2 (33:12):
Yeah. I love the first piece of advice as well.
And I think there's three types of people that ask
for a raise. The first person just asks for a raise,
as you said, They're like, oh, can I get some
more money? And it's like, well, you're doing the same
exact thing, why would I pay you. The second type
of person shows you everything they've done in the past

(33:32):
and ask for a raise, and the person again goes, well,
that's great, but you did that anyway. Yeah, And then
the third type of person goes, this is what I
want to do, which is what you're saying, which is like, hey,
here's I'm going to make you ten, twenty thousand percent
more whatever it may be in your position. And that
third type of person is the person who gets the
raise because you're now investing as an employer in what

(33:55):
you hope is something that's valuable to you if it's
a win win.

Speaker 1 (33:58):
If you work a job, you have to know how
you're making money for your company if you don't spend
it this weekend figuring that out. Because unless you understand
how you drive revenue for your business, you are just
a piece of space. And I say this as nice

(34:19):
as possible because we're talking about AI. AI is getting smarter,
it is getting more advanced. I mean chat TBT did
not exist five years ago. It is getting more advanced
every single day. And there's a lot of talk about
people being replaced by AI, which is true, but the
bigger threat to that is you being replaced by somebody

(34:41):
who knows how to use AI. And so if you
don't understand how you're driving revenue for your business, well,
there's a chance that there's a missing link between what
you're doing as a job and what the business needs
from what you are there to do. And that's what
you've got to figure out.

Speaker 2 (34:59):
And even with your second part of the answer, which
is like how do you learn to use AI for something?
It is people who start with problems like trying to
figure out a problem that you can help solve, that
is really where it is. I think often we sit
there and go, I want to come up with a
really cool idea. And in every cool idea was only
cool because it solved a good problem. If it didn't

(35:21):
solve a problem, it wasn't a cool idea. And so
if you are close to a problem, like sometimes people think, also,
I want to go do something that I enjoy and love,
and that's great and wonderful if it works out. But
it's like there's something that you know in your career
path because you're close to it. I have a friend,
Funnily enough, you're talking about dentistry. I have a friend
who's a dentist. He just understands the dental industry better

(35:44):
because he's been so close to it for so many years.
It's not his passion it's not what he loves, it's
not what he enjoys, but he's been able to build
solutions for dental practices that allows him to make more
money than even being a dentist. And again it comes
back down to what you just said, which is start
where you are, Start where you understand problems. You don't

(36:05):
have to go and learn some new industry and figure
something out, because I think that can feel quite overwhelming
sometimes to think, oh God, I don't know anything about
what's happening in the world.

Speaker 1 (36:14):
You got to know your skill set as well. But
I think you nailed it on the head with that
problem side, because I look as you were talking, I
was kind of smiling because I was looking back at
my life and I was like, everything that I've kind
of done sort of successfully was because there was some
problem that I was trying to solve. My first kind

(36:34):
of reels and I don't want to say first, but
one of my earlier more successful businesses was an e
commerce company. It was a water resistance sock. And this
is I mean, it goes so beyond what we're talking about.
But I came up with this idea because I was
in school. I was in college taking a public speaking
class and they gave us an assignment to pitch a

(36:55):
product to the class, kind of like Shark Tank or
dragons Den, and I procrastinated. I put it off, and
one day it was raining for class and I ran
to class. I stepped in a puddle. I got to
class and teacher's like, it's your day to present, and
I said present. What She's like the product? And I said,
oh crap, I'm standing in front of class. My heart
is beating, my socks are wet. And I started talking

(37:17):
about water resistance socks that if you're an athlete, because
I used put football in high school, American football. Oh man,
when it rains, your feet feels soaked. And I started
talking about water resistance socks and how athletes would love it.
And I sat down and I was like, that's kind
of a cool idea. How can I do that? So
I created a water resistance sock and that was my
first kind of internet business. And then I think about
what I'm doing now. So I run a company called

(37:40):
Briefs Media. Our flagship product is called market Briefs, which
is a free daily newsletter. And that started because during COVID,
the economy flipped upside down, like in a matter of
a day. And so I went from making YouTube videos
like three times a week to seven days a week.
And there's there's so much happening in the that I

(38:00):
asked my team. I said, hey, can you send me
a daily briefing, Oh, what's happening in the markets and
make it stupid simple so I can understand because I
don't like complex jargon. And so my team started sending
this to me, and I was like, huh, I wonder
if other people would like this. So I would occasionally
mention this on my YouTube channel that hey, if you
want to get a daily report of what's happening in

(38:22):
the markets, you can just join this newsletter. At the time,
it was called the Minority Mindset Newsletter. Super original, right,
and that started picking up attention. People started to like it,
and I was like, huh, we can actually do something
with this. We were not making any money, but I
was like, I see the value because I like reading
this newsletter and I don't like the complex jargon of

(38:42):
all the traditional financial news. I just want to know
what's happening in the stock market and the housing market
and cryptoical I just break it down into a quick
five minute read, and that's when we rebranded it into
market Briefs, and I said, hmm, let's ignore all this
other stuff that we were doing. Let's put more energy
and focus into market Briefs. And that's what then allowed
that to take off, which then was the flagship for

(39:04):
many other products that we have now in our company.
But it started with that.

Speaker 2 (39:09):
Pain that's awesome. Yeah, yeah, it's always a pain point.
I just whether it's something like that, like a newsletter,
whether it's the biggest business in the world today, like,
it all started from a pain point. Yeah, And I
think if we spent more time with pain points, we'd
come up with better ideas rather than trying to come
up with solutions and ideas to problems that either don't

(39:29):
exist or that we're imagining. I know a lot of
people like this, probably even on my team, people that
I know friends and family who are like they were
never exposed to investing then, even I wasn't. I had
no idea growing up what investing were doing me.

Speaker 1 (39:43):
Both.

Speaker 2 (39:43):
Yeah, I had no clue. No one ever explained it
to me. I didn't know anyone who invested. Really, I
don't think maybe I knew one person who had one
other property than the one they owned. I didn't grow
up in that circle. If someone's out there going, Okay,
I want to start investing, what's the smallest amount I
need to start investing. What's the number where do they stop?

Speaker 1 (40:05):
Now? One dollar? You can start investing with any amount
of money. And the whole idea of investing is you
take this extra money and you're going to put it
into this thing. You're going to buy something with it
with the goal of making money off of this thing,
as opposed to just buying a watch or a pair
of shoes. But the part that I think a lot
of people don't understand, especially if we don't grow up

(40:28):
learning about investing like we didn't, is there's more than
one way to invest. Because ten years ago, what was investing,
or what did people think investing was how do I
find the next Amazon? How do I find the next Apple?
Today a lot of people think investing is how do
I find the next meme coin? How do I find
a next cryptocurrency before it pops off? We start to

(40:48):
think of investing in terms of gambling, especially because now
there's so much of it around us. I mean, there's
sports bedding, there's the there's foreign exchange market, there's poly markets.
I mean, people are betting on what the better reserve
bank is going to do next. They're betting on these
wild decisions off of Remember that one there was a

(41:11):
big couple that got caught cheating at the Coldplay concert
at was there was a betting market around are they
going to file a divorce or not. So people are
quote unquote investing their money on that type of thing.
So people are now making businesses out of all sorts
of prediction markets. And so we start to assume, without

(41:33):
any financial education, that investing is the same thing. We're
just going to predict what's going to happen in something tomorrow.
But that's really not what investing is. Investing is something
that you want to buy and own for the long
term that you believe is going to either go up
in value and maybe pay you with some sort of

(41:55):
interest along the way. Maybe it's going to deposit money
every month, Maybe it's going to deposit money every three months.
Maybe it's going to deposit money every year into your
bank account for not doing anything. That's what investing is.
So now how do you go about doing it? And
there are three layers that you need to understand. Number
one is the most hands off, and that is I'm

(42:15):
going to give my money to you, a financial advisor,
and you are going to manage my money for me.
And now is completely hands off. And so if you
just run some basic numbers, if I invest one thousand
dollars a month for thirty years and my financial advisor
can beat the markets they do eleven percent a year,
I'm going to end up with one point eight million.

(42:36):
But I got to pay a fee. I got to
pay a price. You might have to pay one and
a half percent fees, so you might end up paying
five or six hundred thousand dollars in fees, so that
one point eight million is what you're getting after the fees.
Option number two, if you want to be a little
bit more involved, but not fully involved, is what I
call being a passive investor. And passive investing is all

(43:00):
about finding a basket of stocks and now you just
keep consistently investing your money in it. So, for example,
you can invest in the United States economy in the
broad economy, and one of the most common and popular
ways to do that is to invest in something called
the s and P five hundred. That's a group of
the five hundred largest companies in the stock market. You

(43:22):
don't have to go out and find Amazon and Tesla
and all these companies. You just invest in this fund
and you don't have to touch it. And the nice
thing about it is if you invest your money to
this fund, and let's just say Amazon goes bankrupt, you
don't have to do anything. The fund is going to
kick Amazon out as they get smaller, and they're going
to replace them with another company, so it's completely passive

(43:43):
for you. Historically this has averaged about ten percent growth
a year, a little bit more than that WOU right
around ten percent. Historically, despite the recessions, despite market crashes,
because we know that they happen, it is averaged about
ten percent a year. So if you invest one thousand
dollars a month for thirty years, that would be about

(44:04):
one point nine million dollars. Then you have layer three,
the most involved. This is called being an active investor.
And being an active investor is not trading, it's not flipping.
It's I want to own good investments that I believe in,
that I've researched and I put the work into and
I want to own them for the long term. So
this might be investing in individual companies, individual stocks. Maybe

(44:26):
now I want to invest in Amazon, Maybe now I
want to invest in McDonald's or whatever. Maybe it's investing
in individual real estate properties. And the goal with this
is you're taking on more risk for more potential return.
So we talked about how if you just investor money
into the broad economy, you're averaging about ten percent a

(44:48):
year as an active investor. You know, we're not talking
about two hundred percent returns or one hundred percent or
even fifty percent returns that people like to talk about
on the internet, because that's not sustainable, it's a lie,
it's a scam, and there's growing you over, we're talking
about a slight edge. Let's just say thirteen percent a year.
If you can do that thirteen percent a year, one

(45:09):
thousand dollars a month for thirty years, well now you're
going to have about three and a half million dollars.
So we're talking about one point six million dollars more
than if you passively invested. You're taking on more risk,
it's more work and more research, but there's more potential upside,
and so you have to know kind of where along
this curve you want to be, because active investing is

(45:30):
not for everybody. This is what our firm focuses on.
Is that research for active investors, but it's more risk
for more potential upside.

Speaker 2 (45:41):
Yeah, and it almost feels like it's better to start
and move layer by layer by layer rather than dive
straight in.

Speaker 1 (45:49):
It often is just to start with what's most successible
to you, because what is most accessible to most people
is something like a four oh one K or IRA
and high person. Don't use a four O one k
because it's not right for me. But personal finance is personal, Okay,
what's right for you, it's not going to be right
for me. Start with whatever you have access to, and

(46:10):
then take the next step, and then take the next step,
and then you'll start to realize what are all the
options out there? Because it can be intimidating because you say,
oh my god, should I invest in stocks or real
estate or crypto? Should I invest individual companies or ETFs
or mutual funds? Oh my god? Should I be investing
in apartments or think of family houses? Should I be
using Take a breath, It's okay. Just start the reason

(46:30):
why people don't see the success that they want out
of their investments isn't generally because they made the wrong decision.
It's because they never made a decision. It's because they
never started. But once you can get started, you can
make that adjustment. I talk I relate investing to working
out all the time because I see the same thing
in the gym people that are getting started with working out.

(46:52):
They'll say, just what should I do? Should I go
do these high intensity workhoh? Should do this these low
intensity workout? Should I do carnivore diet? You try to
do a vegan diet? Should I do?

Speaker 2 (47:00):
You know?

Speaker 1 (47:01):
Look, just get on a treadmill and put down the
donuts right, start and then take the next step, and
then the next step and just start and then you'll
see what works better for you.

Speaker 2 (47:11):
Yeah, how do you track the stock market? Break that
down for me? For someone who doesn't know where to
stock kind of like what we're saying right now, where
you know someone's like, oh, I'm thinking of doing this,
I'm thinking of doing this. They don't understand. How would
you break it down for yeah?

Speaker 1 (47:24):
So, well, the stock market is a place where anybody
can go out and buy a piece of ownership in
a company. Not every company. The company has to be
what's called publicly traded. So, for example, Briefs Media, my company,
it's private, meaning you can't invest in my company. But

(47:44):
if a company is publicly traded, for example McDonald's, you
can buy a piece of that company. It's called the share,
and if you buy one share of McDonald's, you become
one of the owners of that company. So when I
go to Nike and I buy a pair of shoes,
I am a consumer at Nike. When I own one

(48:05):
share of the Nike stock, I've become one of the
owners of Nike. As the owner of Nike, I profit
when you buy the Nike shoes. As a consumer of Nike,
I am making the investors richer. But I look cool
because I got the Nike, I got the Jordans on.
And so the whole idea behind the stock market is
you are buying shares of these companies that are publicly traded. Now,

(48:29):
the price of a stock is going to depend on
whatever the stock is, And what causes the price of
a stock to go up and down is not how
much money the company's making. It's supply and demand. And
what I mean by that is the price of any
asset real estate, stocks, crypto, it ultimately depends on how
many buyers and sellers there are of that asset. So

(48:52):
if more people want to buy the McDonald's stock, then
there are sellers of the McDonald stock, that stock price
will go up. If people are selling the stock more
than there are buyers, the price of that stock goes down,
which then goes to the next question, what causes it
to go up or down? Why do people buy versus
why do people sell? And there are a whole list

(49:12):
of reasons, but you can look at the obvious. If
McDonald's starts to produce bad Hamburgers, the owners might say, oh,
I don't know about this. Well, maybe not the Hamburgers,
because McDonald's is actually in the real estate business. But
if McDonald's starts to have some problems, the owners might say,
maybe I should sell. If McDonald starts to have smaller profits,
now the investors might get concerned. If they start to

(49:34):
have bigger profits than expected, more people might want to buy,
which could push the stock price up. So you have
to understand the psychology of the buyers and sellers. Because
there's two parts to successful investing. One is the financial side,
but it's also the emotional side, and in today's market,

(49:58):
our markets are more emotional than ever before. Business Insider
actually did her study on this recently, where they I mean,
it's not really that hard to find, but they said
that our stock market is more volatile than previous decades,
which for the average person is not good because they say,
oh my god, I'm scared, but market, the markets are

(50:19):
going to go down, I'm going to lose money. But
for the financially savvy, that creates more opportunity than ever.
In twenty twenty five, for example, we saw three stock
market crashes. When we saw the first announcement of tariffs,
markets crashed, Then tariffs are paused, markets hit new record highs.
Then we had the second announcement of tariffs, markets crashed.

(50:40):
Once those were paused, markets rose again. Then we had
Liberation Day, the third announcement of tariffs. Markets crashed at
the fastest rate since the pandemic. Then there were paused
and markets broke new record highs. See for the average person,
that was a nightmare, But for the financially savvy, all
of those downturns created a great buying opportunity. The thing

(51:01):
that I like to tell people is you're going to
see ups and downs. But when you have those crazy times,
I want you to remember one thing. I want you
to remember poop p oh oh p Why Because panic
leads to over selling, leads to opportunity, leads to profit.

(51:22):
And that's where you know, we've been talking a little
bit about the education side of investing, but that psychology
is just as important because if you're the one that's panicking, well,
you're making somebody else wealthier. Yeah, and you have to
understand what it is that you're investing in and know
how that fits in with your investing strategy. That way
you can actually make money instead of being the person

(51:44):
that's making somebody else money.

Speaker 2 (51:45):
Yeah, I was gonna I was going to say that.
One mindset that sticks very close to what you're saying,
which may have to go earlier on in your system,
is this idea of I'm trying to get the language right.
You name it better because it's your system. But this
idea of just don't chase fast money, because I think
the reason why we get scared when the markets crash
when we're not financially savvy, is because we thought, oh god,

(52:07):
I lost all my money. Let me take it out right,
or let me avoid putting more money in because things
are not looking safe. And this idea of this mindset
that we have around I just want to make money quick,
you know, I just want to put something in next
year it's huge, and then I want to pull out
and it's like, well, that's like very very rare for
people to pull off. And I think that speedy money

(52:29):
is what stops us from making good decisions because by
the time you actually put money in, you're like, oh,
they I should have done it last year, right, because
you're just watching that quick win. Does that make sense? Yeah?

Speaker 1 (52:40):
That is Actually it goes back into what you were
saying a little bit ago when you said, what about
that person was living paycheck to paycheck? What does that
person want? I want a relief of where I am.
So what is that relief? Often it's fast money. It's like,
oh my god, my arm hurts. What I want? I
want relief, Give me the extra strength tile and all
of whatever it is because I just want to quick fix.

(53:03):
And so what happens to a lot of times that
person in the situation, and we were hinting at this
more different angle before is you get screwed over. The
system profits off of you because well, you are a
prime candidate for spending money. But now if you start
to say, oh my god, I just want to make
some more money, what happens? Will you become a prime

(53:24):
candidate for that fast money, and that fast money most
of the times is not there. And when it is there,
if it does happen to come fast, you're also going
to lose it just as fast because if you don't
know what to do with that money, well it can
go and leave just as fast. It's a they say,
I think it's like eighty percent of lottery winners go

(53:46):
broke or bankrupt within five years of winning the lottery.
Why it's not because you didn't have enough money. People
have won millions and millions and millions of dollars. If
you don't have the financial education and the money comes fast,
it's going to disappear just as fast. And on the
other side, when you become desperate for money, you become
a prime candidate to buy those programs and services that
are trying to sell you this dream of Hey, all

(54:08):
you gotta do is work three hours a week on
a laptop off of a beach and Bali and you're
gonna make ten thousand dollars a month, ten thousand dollars
a week. You don't have to do anything. It sounds amazing.
Sign me up, nine hundred and ninety seven dollars. No problem.
Well that fast money doesn't work like that. There's no
sacrifice in the hard work.

Speaker 2 (54:28):
Yeah, you brought up AI. Where do you see the
biggest opportunities with AI and investing right now?

Speaker 1 (54:50):
Oh? Man, Well, let me premise it with this because
I love talking about history, because while history doesn't exactly
repeat itself, it does rhyme. When the inner that started
to become popular in the nineties, we started to see
very similar things happen. What do I mean by that?
If you started a company in the mid to late
nineties and you put the word dot com at the

(55:13):
end of it, you could go to whatever bank or
investing institution you wanted and raise a couple million dollars
because they wanted a piece of that action. Money was
just being dumped into the internet companies. And then came
the year two thousand and in the year two thousand,
that internet bubble that was created popped and we saw

(55:34):
internet stocks get wiped out, and there was an index
called the Nasdaq, which tracks a lot of these techie
type of companies. At that time, it was a lot
of Internet companies. That index fell by about seventy eight percent,
and it was a disastrous crash where even Amazon stock

(55:59):
fell more than ninety percent. But during that time, we
started to hear the news that the Internet must be
a fad, the Internet's done, no one's using the internet
before I mean, there was a lot of famous headlines
for big newspapers that publish that. Well, what happened. It
wasn't that the Internet died, but a lot of Internet

(56:20):
companies did die. It was the strong companies that survived,
and Amazon became what it is today. So you talk
about AI, could we be in an AI bubble? Absolutely,
We're always in some sort of bubble. We have more
money going into AI than ever before, and it really
feels like that rate is accelerating, and it's it's like

(56:42):
an infinite black hole of money. It's just money coming
out of everywhere, from the government, from foreign countries, from investors.
Everybody wants a piece of the action. Could we see
an AI bubble burst? Absolutely, But just like how the
Internet bubble burst. It doesn't mean the AI is going
to go away. If it does happen, it means that

(57:04):
the smart and the savvy will survive and then the
others will get wiped out. So now let me ask
that answer that question. Now, where's the opportunity? And I'm
going to explain this like an onion, because like onions,
have multiple layers. That's how savvy investors like to think
about their investments. Because when a lot of people think
about AI, they think, how can I invest in chat GPT. Well,

(57:28):
when you're saying that, what you're essentially saying is I
want to invest in the company that's producing the AI.
And there are companies that do that, which sure, but
that's the top layer of the onion. What every savvy
investor wants to do is they want to know where
is the money moving, where's the money going to go?
Before other people understand. That's what investment research is all about,

(57:48):
and that's what I try to spend a lot of
my time in what my company works on. So let's
now go one layer deeper. Well, what is that AI
going to be powered by? What is powering this technology? Well,
right now, it's being powered by computer chips, because in
order to do this AI computing you need powerful computers. Well,

(58:13):
the next generation of computer chips, which we don't have yet,
could be something called quantum computers. And a quantum computer
is essentially a supercomputer to the one thousandth power on
steroids that a typical computer. So I don't want to
get two technical, but a typical computer that we have

(58:35):
today can solve one math problem a second. That's just
the way that it works. But what a quantum computer
can do is it can solve multiple problems per second.
So a sixty four bit computer that we have today
which exists, that can solve one problem a second, is
sixty four cbit computer can solve If I remember the

(58:57):
numbers correctly, I think it's eighteen quintillion problems a second.
What does that mean? A quantum computer can solve what
a normal computer would take hundreds of years to do.
That same problem could be solved in a matter of seconds.

Speaker 2 (59:16):
It is.

Speaker 1 (59:16):
We're not there yet, but there are companies that are
investing in it. If that happens, some of those companies
could make a lot of money. Well, let's keep going
another layer deeper, right, We're going down the onion. So
we talked about the first layer, which is the AI
maybe quantum What about the third layer. If I have
a AI company or I have AI, I have data.

(59:36):
And as much as we want to talk about privacy,
the reality is if you have a smartphone, you have data.
This is in the cloud. Well the cloud isn't in
the clouds. The cloud is actually in a physical building
called a data center. So as AI starts to gather
more data, because anytime you ask chat GPT a question,

(59:57):
whether it's a guacamole recipe or something, write me this email,
that data is being stored somewhere, and that data is
being stored in a data center. And that could also
create an investment opportunity because now as we start to
have more data being processed, as more people use AI,
more data is being created every single second. So now
data centers are now booming because of that. In fact,

(01:00:20):
I was just reading that there are some companies looking
at putting data centers on the moon now as a
way to diversify. That's how crazy it's getting that we're
looking for new ways to put data centers outside of
the Earth. We could take it now one layer deeper
in the onion. Right, So we talked about data centers,
but those data centers have to be powered too, because
those data centers need energy. Those data centers that are

(01:00:43):
keeping all this stuff use a lot of power, and
there are specific companies that are powering those data centers.
And these companies are trying to be as innovative as possible.
How can we now power the data center for as
low cost as possible? And somebody's going to win that race,
and the one that wins that race is going to
make a lot of money. That can create an investment opportunity.

(01:01:05):
Let's take a one layer deeper in this onion. That
data center has to be kept at a specific temperature
because they have all these computer parts in there that
get hot. I mean if you use a computer, you know,
you get that sound it gets how well, if that
data center starts to overheat, it is going to malfunction.

(01:01:25):
And no AI company, no tech company, wants to lose it.
I mean it would be a disaster. So these data
center companies are investing heavily into data center cooling, which
is a whole new industry of companies. Well, one of
those companies is going to be the most efficient they're
going to be the most innovative, and they're going to

(01:01:46):
be the best one, the one that everybody wants to use. Well,
they're going to have the opportunity to make a lot
of money as well. And so this is what smart
investors are doing is you know when people think about AI, oh,
I want to invest in this AI stock, Well that's
the first layer of the onion. But what savvy investors
are doing is they're peeling that layer back and they're
trying to think two years on the road, five years

(01:02:08):
down the road, and what are all the things that
are impacted by that artificial intelligence. Now you can invest
in the individual companies that are funds that can give
you exposure to artificial intelligence, but the whole idea is understanding.
I mean, this is investing one on one. It's understanding
where the money is moving and that's where the opportunity

(01:02:28):
will be.

Speaker 2 (01:02:29):
Great answer, sign me up to market.

Speaker 1 (01:02:31):
Briefs, Yes, that's what we call it, but that's.

Speaker 2 (01:02:34):
The insights you're giving people. Right Like, if someone signs up,
are you able to say, hey, these are the three
companies right now that are building X, y Z for
you to be informed and then someone could go and
look at that or how does that?

Speaker 1 (01:02:48):
So market Briefs itself is the news. We give you
a snapshot of what's happening. That's free. Then for the investors,
we have different types products for the different type of investor.
Because we talk to people that want to work with
a financial advisor, we can help referr you to financial advisor.
For those way that want to be passed to investors,
we're building tools for you that way you can analyze

(01:03:11):
ETFs and do all that stuff with the power of
AI in there. We're building our own proprietary tools, which
I've never talked about before, but hey, here we are
launching in twenty twenty six some really powerful stuff. Then
for active investors, we have our Briefs pro product, which
is research. And the thing that makes this so unique

(01:03:32):
and powerful is traditionally, if you wanted to know what
Wall Street knows, it was Number one extremely expensive. Number
two is extremely complicated. I mean, if you go and
read Black Rocks reports, which I do. I'm a weirdo,
I you know, but if you read any of these
banks reports, it is complicating. It's difficult, and there's a

(01:03:57):
lot of technical jargon in there that you know, let's us.
You are a professional, it's really hard to understand what
these companies are doing. So what we try to do
is we have analysts that do real research. I mean
we're we're going to talking to executives, they're going out
and attending trade shows. They're going out and putting in
all this work to find where money is moving. And

(01:04:20):
then we break it down into our pro research for
the active investors, because not everybody should be an active investor.
It's for the people that actually want that research that
we break down into plain English.

Speaker 2 (01:04:32):
How should someone who's a university graduate right now, a
young person prepare for an AI driven economy? What should
they be thinking about?

Speaker 1 (01:04:42):
You better learn it? You better? It is inevitable at first.
You know, I'm one of those guys. I hate to
say this, but I'm one of those guys that kind
of has always fought technology. I was very anti smartphone
for a long time. I was very anti touchscreen phone
for a long time. Still don't really understand how to
use Netflix. My wife is the lead on that, and

(01:05:05):
I was kind of like, you know, with AI, I said,
this is cool, We'll see where this goes. And as
I started to learn about it more and more, and
I started to use it in my own business. I
started to realize, oh my god, this is not one
of those things that I can just kind of sit on.
Because the Internet changed the world quickly, and the companies

(01:05:30):
that understood the Internet were able to grow very fast,
and the companies that didn't failed Blockbuster bankrupt, Sears bankrupt. Well.
AI is doing the same thing at a much bigger level,
at a much faster rate. But our minds haven't gotten faster.
And that's what makes it very unique. Because humanity can

(01:05:55):
only evolve as fast as we can evolve. I mean,
our minds can only grow at a certain rate. Technology
keeps growing exponentially faster. So when the Internet started to grow,
we thought it was extremely fast. I mean, over the
course of two thousand twenty ten, we saw a lot
of companies that were not getting involved with the Internet

(01:06:17):
getting wiped out. Well, Chat, GPT did not exist five
years ago, and here we are today in twenty twenty five,
and you have a lot of companies that have replaced
workers with AI and ensure. There's a lot of companies
that have not started adopting it yet. But the companies
that are savvy have started integrating AI in some way,

(01:06:40):
shape or form. I mean, I have a YouTube channel
in Spanish. I'll give you an example, and what I
used to do is we used to take my videos,
send it to a person who would then write down
my script and then he would record it or he
would translate it and then he would record it. He
would give us the audio recording, and then we would
take the audio recording and impose it onto the video.

(01:07:01):
I mean, this was the process. I'm sure you've done
something similar and then that would get published. And that's
what we did for a long time. Then came AI.
You take the YouTube url, you put it into this thing,
you press entern in fifteen seconds later it's a video
dubbed in Spanish in my voice.

Speaker 2 (01:07:20):
At a fraction of the price and speed. Insane.

Speaker 1 (01:07:25):
You don't have to rely on somebody else. This guy's
on vacation, I have to wait for him to come
back for vocation, or if I'm doing an interview with
somebody else and I need two voice editors. I mean,
it was just it was difficult and expensive. Now with AI,
it's not like that. So we're talking about in just
a few years we've gotten to where we are today,
and we're not even at the goal of what AI

(01:07:46):
wants to be. The goal with AI is AGI artificial
general intelligence. And if you read what OpenAI has published
on their website, they say that their goal is to
build a smarter artificial general intelligence for humankind. Meta has
said the same thing. I mean, pretty much any AI

(01:08:08):
executive has made it explicitly clear that their goal is
not artificial intelligence. It's a GI. And what AGI is
it's an AI that will do the work for you.
So let's say I wanted to start a guacamoly business, right,
I like you, I like food. I'm just a food person.

(01:08:28):
So if I go to AI and I say I
want to start this business, it can give me some
recipes and I can say, you know you can do.
You need to file an LLC, you should go find
an assistant, and you should find a place to build
your recipes and things like that. If I ask that
same question to AGI, the results are very different. Instead
of telling me what I need to do, AGI will

(01:08:51):
go out and actually file my LLC for me. It
will go out and sign a lease for me to
rent my warehouse. It will go out and hire me
a team will hire me and exist an executive assistant
to run the business for me.

Speaker 2 (01:09:05):
You'll probably hire an AI and it'll.

Speaker 1 (01:09:07):
Hire the AI to do that work. That's what's every
AI company is working for. And the first company to
get there is going to be the one that is
going to be making all that money. And if you
don't understand that, you're going to be left behind. So
if you're out of college, you have to learn about AI.

(01:09:28):
I don't care what industry that you're in. Learn how
to use it because you know, a lot of people
talk about there's not going to be need for human workers.
I don't necessarily agree with that. Yeah, I agree with that,
but there's not going to be a need for purple
that don't really understand how to use AI. And so
you need to understand how to use it to make
your work better, to make your work more efficient, because

(01:09:50):
you might not be replaced with AI, but you will
be replaced by somebody who understands AI. And I know
at our company, when we hire I don't care the
position is. Even our customer service reps, we ask them,
how do you use AI? What do you understand about AI?
Because we want to know how you are thinking and
if you are out of college, you were in a

(01:10:13):
I mean, and people look at it as a big
con and a big hindrance. But for the savvy, it's
a huge opportunity because most people have no idea, they
don't know anything beyond chat GEPT, and all they use
chat cheapt for is the very basic stuff of how
to write an email or analyze this for me. But
if you can start to research it, and there's a

(01:10:36):
lot of free resources on YouTube.

Speaker 2 (01:10:37):
Yeah, what would you recommend for somebody who's like, I
really want to learn AI this year? I want to
give you know, a couple of hours a week to
do it, maybe a couple of hours a day because
I'm really excited about it. Where where do they start?

Speaker 1 (01:10:47):
Start with YouTube? I mean, YouTube's got so much free
content out there, and learn some thing and it's free,
free to try it. Go into chat, GPT, go onto
YouTube and learn what can they use AI for? And
you're going to see all these crazy stuff to start
to go down some rabbit hole that can align with
your career. So, if you're a dentist, how can I

(01:11:08):
use AI in a dentistry office? If you are an engineer,
how do I use it as an engineer. If you
are a construction worker, how can construction workers use AI?
I mean, there was the thing that I was reading
about window washers. This is not a tech savvy industry,
but it was talking about how there's a business of

(01:11:29):
people now that are building AI tools for window washers, saying, hey,
when you have to go and clean people's windows, how
do you know which house to go to first? If
you can have an AI tool to build that route
for you, you can save time and do more houses
in a day. And if you can use that same
AI tool to help you give quotes that are more

(01:11:53):
realistic to maintain a profit margin without you necessarily having
to go to every single house, you can give more
quotes that are more accurate and spend less time doing it. So,
if you want to edge as a window washer, use AI.
If you want to edge as a real estate agent,
use AI. I mean in real estate. There was if

(01:12:17):
you want to help sell a house, you want the
house to be furnished. You wanted to have the nice
furniture so people can imagine themselves living there. Well, it's
expensive to furnish a house, but what if you can
take a virtual tour of a house because somebody can
take a video of it and you can use AI
to super impose the furniture in the house. Now somebody

(01:12:37):
can imagine themselves living in the house with a virtual
tour where they don't have to go to the house,
and it costs you a fraction of the cost of
actually furnishing it, which means that you can find more
of that potential buyer faster, easier if you can show
them how they could potentially live there. Again, it's not

(01:12:57):
replacing the need for them to go there, but it's
making it easier for them to decide if they want
it or not.

Speaker 2 (01:13:04):
Yeah, definitely. Yeah, I've seen the AI that lets you
try on things when you're online shopping for you it's
crazy Avatar to see it, for you to see it,
whether it's purchasing something, it's it's incredible just how much
it's speeding up decision making purchase again, which means again
going back to your original point where we started, is
you're either going to become the consumer, yeah, or the

(01:13:26):
investor and the user one because we're all going to
consume based of AI because it's going to make it
easier to spend more.

Speaker 1 (01:13:32):
Absolutely and the people that understand it. It's going to
the internet made some people wealthier, it made it easier
for everyone else to spend money. Right, we started off
with oh, you can just spend money without driving to
the store. Well, then it became the one click purchase
because Amazon realized that for every time you had to
click a button to get to the checkout page, they

(01:13:53):
lost about fifty percent of buyers. So this and how
do we just create the one click purchase way? It's
so easy to buy. Then came buy now, pay later online,
So you go to the purchase, don't you don't need
the money to buy anymore, Just hit by and we'll
figure out how to get your payments later. Now, with AI,
it's going to know what you want before you know

(01:14:16):
what you want, and it will be presented to you.
And the people that don't understand how to control their
finances are going to be spending their money much faster.
The people that understand this are going to be able
to gather that money much faster. So it's what side
of the game do you want to be on? And

(01:14:36):
it goes back to the financial education, which we're never taught.

Speaker 2 (01:14:40):
It's great masterclass. It's fantastic, really great man. The world
is changing so simple. No, but the world is changing.
It's changing fast. But what I really appreciate about talking
to you is you make it so simple and you
make it applicable for everyone. I hope everyone has been
listening and watching today has a roadmap. I feel like
they have this step that they need to take to

(01:15:01):
improve their financial wellbeing, and that they're supported in that
because it's such a systematic process and it doesn't matter
how much or how little you have. It feels like
you've given people a real blueprint to start with.

Speaker 1 (01:15:14):
The reason why I wanted to do this is because
I was actually reading a statistic right when your team
emailed me, which was we know that somewhere between fifty
to seventy percent of Americans are living paycheck to paycheck,
And then I was reading a statistic that said seventy
two percent of Americans have Netflix. What that told me

(01:15:37):
is that the average American is spending more money on
Netflix than they are on their investments. And that's a
problem that should be flipped, or it should be way
beyond flipped. And it's what are we prioritizing. And the
reality is the reason why so many people do that
is because we just don't know there's an alternative. And

(01:15:59):
that's what we're on the mission to do, is to
help help people be better with money because it costs
money to eat, it costs money to feed other people.
And unless you learn, you were going to be the
person making everybody else rich and never wondering, never understanding
why why how come I can't ever have freedom? How

(01:16:22):
come I can't ever have those nice things? How come
I can't ever do that stuff that everybody else is doing?
But it starts with their mindset and starts with that
financial education.

Speaker 2 (01:16:30):
Great, just read thing. Everyone. Make sure you go and
subscribe to market Briefs the News. Let's if you want
to find out simple actionable tips on the news around
finances and stock market Market Briefs dot com or is
it I want.

Speaker 1 (01:16:43):
To brief dot co slash market briefs dot co slash
market Yeah, or you can just go to brief dot co. Oh,
you'll see market briefs there. Honestly, if you go to
Marketpriefs dot com it'll still be there too. But for
briefs dot co is our homepage.

Speaker 2 (01:16:55):
Okay, amazing, just free. Thank you so much for your time,
your energy. I learned so much that you keep coming
back on the show again and again to give great insights,
and so excited for everyone to go and make better investments.
This is my actual hope for people after this. Please
do not sleep on this advice. Please go and subscribe
to market briefs. Please go and figure out how I

(01:17:17):
did invest one dollar. That's all I want you to do,
to actually go and do it so that you get
into the practice we were talking about waiting around for
a long time. And the third is go and really
make sure you make those three bank accounts. So there
was a brilliant piece of advice to actually have your savings,
your investment and your spending money. Those three action items
from this episode will transform your financial wellbeing. And of

(01:17:39):
course there were so many more insights that just it
gave that I hope change your life and change your
family's life as well. So yeah, thank you.

Speaker 1 (01:17:46):
Man, well thank you Jay. You know I saw what
was a pleasure to be on with you. We got
to bring you to Detroit sometime. Absolutely, you know the
small changes add up, so get started. It doesn't matter
where you are, it adds up. And I'm gonna give
one last debt please, Because I just said that, I
was like, oh, you know I should say this. If
you can invest four dollars a day from the day

(01:18:08):
turned twenty one until the day turns sixty five, and
you just invest your money into the markets, you will
retire a millionaire four dollars a day. That's something that
I think everyone in a first world country can strive
to do. Regardless of where you are, it's possible. Just

(01:18:29):
get started.

Speaker 2 (01:18:30):
What was that? Amazing man? Thank you, thank you, Thank
you so much for listening to this conversation. If you
enjoyed it, you'll love my chat with Adam Grant on
why discomfort is the key to growth and the strategies
for unlocking your hidden potential. If you know you want
to be more and achieve more this year, go check

(01:18:51):
it out right now.

Speaker 1 (01:18:52):
You set a goal today, you achieve it in six months,
and then by the time it happens, it's almost a relief.
There's no sense of meaning and purpose. You sort of
expected it, and you would have been disappointed if it
didn't happen.

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Jay Shetty

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