- What's going on y'all welcome back to the channel.
I'm your grateful host, Jeff Rose.
You know, sometimes, sometimes math is hard.
What can we say?
Math is hard and this is why I love social media.
I love being able to see just thought leadership
that is expressed, that is shared.
Am I being satirical? I am.
I am a little bit so, how all of this went down,
well, a guy who I follow, who I respect,
his name is Ramit Sethi,
if you don't know who he is, check him out.
He's got an amazing blog, a book, YouTube channel.
And if you see some movement behind me,
my puppies are here they came over to say hi.
So I'm on social media and I see this,
oh, wrong one, wrong one, here we go.
So I see this, this tweet that Ramit put out.
And the tweet says, This is what I mean
when I say I don't take financial advice
from people on social media.
So what Ramit is sharing, let me go ahead
and make this little bit bigger so that you can see,
So he is sharing a tweet by a guy who goes by
the Side Hustle King,
his Twitter handle is profitwithant.
I wanna make sure I read that right,
at first I'm like, wait, is he an ant?
No, I guess that's his nickname, whatever.
So this is what the tweet had to say.
It says, would you rather, it's a would you rather,
would you rather get paid $1 million right now
or $50 every month for the rest of your life?
Okay. So without even looking more into this,
if you just had to answer that question,
which one would you rather have?
A million dollars today or $50 every month of your life?
I don't know what your answer was,
when I read that it's what we call a no brainer, right?
So profitwithant goes on to say that,
he will take option B, option B
and he, to give more clarification of why,
he would choose option B,
he would choose the $50 a month over the 1 million,
is that, because that is what passive income is.
(laughing)
That is what passive income is.
Is what are you saying?
That's what passive income is?
I mean, yeah, true, it's a true statement.
That is passive income.
You're getting $50 a month for the rest of your life,
and you don't have to do anything.
That's awesome. That's awesome.
Except that you're giving up a million dollars today.
And then he goes on to say,
find a way to make passive income,
it will change your life.
And there are a lot of good responses to this
and I won't go through all of those,
but I'm just like, I'm curious, like, I'm curious.
Why would someone go?
Why would they make that decision?
Like, why would they actually choose $50 a month
over a million dollars today?
Because if you kind of do the math there,
that's $600 a year as opposed to a million dollars today.
So you get the weight.
If you got $50 starting today
and at the end of the year, you've got $600.
Or you could had a million dollars a year ago.
I think you get my point, right?
So anyway, I was like, okay, I'm just curious.
Like, does he really think this?
Does he believe this?
So I went to his Twitter profile
and I mean here's actually the funny thing.
So like, check this out.
If you can see this, if you actually look at his tweet,
there are 1,428 likes on his post.
(laughing)
So people are actually are liking this.
Like, yes, that's what I'm talking about,
passive income baby, yeah. Oh, okay.
But, so then he goes on to say, dah, dah, dah.
And I think finally, finally he realized,
oops I made a mistake.
So he and he does say,
So he goes on say, I made a mistake,
I was at the gym, doing cardio was typing too fast.
I'm smarter than this. LOL. I did the math.
I am like, what the heck was I thinking?
It will take 1000 yeah, it would 1666 years,
to get to almost a million dollars.
So, okay. Benefit of the doubt,
profitwithant, the Side Hustle King made a bit of a mistake.
I don't know,
I'm not really sure what number he was missing?
Was it thousand dollars right now?
Maybe that's what he meant?
I mean, he added a couple zeros there.
Was it 5,000 a month? I'm almost wondering,
did he really make a mistake?
Or did people call him out
and he went back and waslike, oh, ooh.
Either way, either way. I'm gonna give this guy
the benefit of the doubt.
But here, this is where it gets better.
This is the part that I really,
really wanna talk about
because this is,
this is why you gotta be careful,
who you listen to on social media,
because are a lot of people out there,
that will claim that they know what they're doing,
that they are successful.
I mean, it's just out there, right?
We know this, like we know this already.
But man when somebody like doubles down on,
(laughing)
so profit the side hustle king,
is already acknowledged that he made a mistake, right?
You already acknowledged that,
but oh no, we let's go.
Let's go.
Let's go deeper down.
So now we got Nick Huber here,
who is known as the sweatystartup.
I don't think I need to take a shower,
what's going on there.
So he doubles down on the $5,
$50 a month versus the $1 million,
because he says B all day, B all day, every day.
All right.
And why does he go on to say this?
Because what people don't understand is
a half of that 1 million is going to be paid in taxes.
Okay. That's fair.
I mean, we didn't say how getting the $1 million.
So, all right.
So you're getting giving a 50% to the IRS, uncle Sam
and then he goes on to say,
so $50 a month can be used to pay my cell phone bill,
which I'd use to make more money right now
or my internet bill, which I'd used to get smarter.
He'd used it to get smarter
and make more money or rent a power washer.
Yes. A power washer to make more money.
Who, I mean, come on now, he's speaking some truth here.
Why would you take a million dollars and pay tax,
pay half a million dollars in tax
and get half a million dollars today?
I'll no, no, no.
I'm gonna, I really get that $50 a month.
I want to get that passive income,
so I can pay my cell phone bill.
So my cell phone bill can help me make more money.
I'm guessing if he does have the cell phone,
he is not familiar that cell phones come with
what's called a calculator app,
that allow you to make these calculations,
to see if the math works out.
Ah, once again, yes, I am being satirical,
I'm feeling frisky today people, I'm sorry.
I just, I just really, really enjoyed this one.
All right.
So he's not done though.
He's not done.
We got more, we got more,
he goes on to say,
this is the one that I actually ended up quoting him on.
Oh, where did it go?
I got to find it.
I might have to just go back to my tweet
and see what his response was.
So let's see,
here we go.
Here we go.
Okay. Here we go.
So this was his response or his response,
which then I I tweeted at him at,
(laughing)
'cause I just had to.
I'm sorry, oh sorry.
I just had to do it.
I could no,
but I couldn't help it.
So, so he ended up responding to somebody.
Okay. Here's where it was.
So that's what he put out his, his B all day.
And then this guy, Dr. Parik Patel,
here goes on to say, sir,
sir I love how he's speaking to him,
sir, where this guy looks like
he's in his mid forties, fifties or so.
And he's talking to this guy who looks fairly young.
This Nick guy, sir, this is the wrong choice.
$50 a month is 600 bucks a year,
600 bucks on half a million dollars
is a yield of just 0.12%.
I could invest that half a million dollars,
in treasuries and make a better return.
Yes.
True story.
That's a fact true story.
But Dr. Sir, Parik Patel doesn't understand something.
Something that only Nick Huber
and the sweatystartup guy understands.
So this is what he understands,
that I guess that we, we all need to understand.
So what is the concept that we need to understand,
that we don't get,
that we don't get that only he gets it.
Only people that understand him,
and what passive income is all about.
What is this?
What we don't understand is scale,
because this is what Nick has to say.
You don't understand scale, Mr. Doctor,
who also has a BA, a CFA and ACCA,
whatever that even is,
he is a CFA charter financial analyst.
So you don't understand scale,
because you could buy, I'm sorry.
You could use $50 that $50 a month to buy 10 tomato plants.
And in six months you're gonna have 250 tomatoes.
Hope you like tomatoes.
Plant those 250 plants,
six months you're gonna have 6250 plants,
plant them,
Six months, you have 156,000 tomatoes,
Plant them six months, you have 3.9 million tomatoes,
sell them for a dollar each.
Mic drop,
mic drop people.
That is scale.
So why on earth would you want to take,
a half a million dollars,
half a million dollars and buy 5000, 10000 tomato plants?
Oh no, no.
You wanna use them $50 to buy 10, buy 10.
You see this right?
You see this?
Now I will say that.
I looked at my response is,
you know I don't understand scale.
I'm using your logic.
You know, why not take, why not take a half
a million dollars and buy a hundred thousand tomato plants.
So in six months you've got 10,000 more to return.
That's what my calculator said.
That's what my calculator showed.
So I don't understand.
Oh, and he, the last thing,
he may have said something after this,
I kind of stopped reading,
because it was really, really hard to really grasp
what he was trying to preach here
and try to demonstrate in,
and showcase with his knowledge expertise,
do this every single month with your $50 for 12 months,
you've got $46 million.
Very few, my friends, very few understand this.
Oh, thank you, Nick,
Mr. Sweaty startup.
I hope you can see right now,
like that there is, there's a lot of flaws in this.
There is a lot of flaws in the math.
Now I'll go back with the original tweet
and that was done in error.
That's great.
I get it.
But I will say that there are,
when you've got over 1400 likes on failed math,
and people all they see is passive income.
They see somebody, oh no, that guy is not,
he's not choosing what everybody else is gonna choose,
he's choosing the different route.
So that has to be the right thing.
And I'm all about going left,
and everybody goes right.
Like, I am all about doing something different.
I mean, that's what,
that's why I started the wealth hacker channel,
you know showing how you can do different things
and you can lead to extraordinary results,
but it takes some common sense.
It takes some basic math for it to work out.
So be careful because on, I don't know with Nick here,
but I do know that profit withant,
like he was trying to sell,
promote a course of his, that he selling.
I don't really know what it was.
I didn't even take a look.
But you know, if you look at his tweets to respond,
before he realized his math was off,
you know he was pitching something,
some sort of investing thing.
I don't know if Mr. Sweatystartup is promoting anything
or if he's just promoting himself,
trying to be seen as a thought leader.
And I don't mean to bash this guy
like to put yourself out there.
I give him credit.
You know, I talk about having bold intentions
and being willing to be brave.
So I don't wanna tear him down in that regards,
because I admire people that put themselves out there,
but you all be careful,
be careful what you say,
be careful what
(laughing)
be careful what you think,
before your broadcast it for everybody to see.
I'm not sure who has spoke into his life,
but for him to truly just put it,
put off, put his flag down and say to this CFA,
you don't understand scale,
that you don't get it,
you don't understand,
this is what it's all about.
Man, simple math, simple math,
take the $1 million,
pay the taxes and then invest it,
invest it until you figure out,
what you wanna buy,
so that you don't waste money buying 10,000,
a 100,000 tomato plants, whatever.
Put that money into treasury,
put that money into the bank, into the CD,
make some money,
a little bit of interest until you figure it out.
And then when you want to start dabbling,
into investing into cryptocurrency,
into starting a side hustle,
into whatever,
then you can do it.
That's the path.
that's the journey,
all right, guys.
I had to do this.
I'm sorry, I'm sorry, Mr. SweatyStartup,
I'm sorry all of this,
but just wanted to show you, be careful
the information that you get excited about
and that you want to follow,
that also compels you to take action,
that you may not otherwise other,
you may not otherwise take,
like this may inspire somebody,
to go and buy 10,000 tomato plants.
I don't know what, but in this case here,
choosing the 50, choosing option B,
choosing the $50, that was a bad decision,
that was a horrible decision.
So don't be this guy,
watch out, until next time,
this is Jeff, I was reminding you it's your money,
it's your awesome way.
(laughing)
I'm all flustered.
It's your money,
its you're awesome,
and don't buy tomato plants.
Am Jeff till next time, peace.