- You'll never become a millionaire
unless you understand this concept.
Right, this is where you are right now,
and this is where you wanna be.
Now you see this space in the middle.
I call this the performance gap.
The difference between someone who becomes a millionaire
and someone who's just getting by
lies in their obsession with closing this gap.
Most people's paths look something like this,
up and down all over the place,
and they never reach their end goal.
A person who becomes a millionaire in their 50s
will have a path a bit more like this,
eventually getting to their goal.
Now my path was a little bit different.
Now I managed to go from point A to point B pretty quickly.
To be honest, I think the only reason
I managed to bridge this gap
was because I didn't have any other options.
I wasn't particularly talented or smart.
I didn't have any qualifications to lean on.
And after getting bullied by my first boss,
I quit the usual nine to five grind.
So I made a promise to myself to become wealthy
as fast as possible.
I did everything in my power to bridge the performance gap,
and I became a millionaire in my 20s.
(mellow music)
If you only remember one thing from this video,
then let it be this.
The amount of money you make is always directly proportional
to the amount of perceived value you give.
To put it simply, the bigger the problems
you're able to solve, the more money you'll make,
and the faster you'll bridge the performance gap.
So the first thing I want you to do
is draw out a Venn diagram like this.
In this section, I want you to write down
the things you like to do.
So if I was doing this, I'll put down rating cars,
flying planes, traveling and playing golf.
I'm sure you have a lot of others you can add,
so just go crazy with it.
In this next one, write down the things you're good at.
Off the top of my head, I'd say having conversations,
building and designing models, leading teams, and carpentry.
And finally, write down the things
that people will pay you a lot for.
Let's put down consulting, building structures,
and designing complex mechanics.
The trap that most people fall into is only considering
one of these factors when they're deciding
what they want to do with their life.
I mean, imagine choosing a job just because you love it,
but you'll start making minimum wage,
and before you know it, you're hating what you once loved.
Talk about a passion killer.
Or picture this, you are good at something,
so you make it your job,
but you're working your fingers to the bone
and still not making enough money.
You're stuck in your comfort zone,
not really going anywhere.
And then there's this scenario where you pick a job
just because it pays well, which sounds good, right?
Well, not if you are miserable every single day.
That's why the only solution to becoming rich and happy
is to find something that's in all sections.
I call this the value zone.
I managed to find this early on
by combining my passion for model helicopters
with my skill for building models
and advice people would pay for.
This led me to opening multiple model shops
and designing my own brand of models
that I sold across the globe.
The problem with the way most people look at business
is they want to find the side hustle or the method first
and then try to fit themselves around it
rather than nailing down their value zone
and then finding the correct side hustle to start for them.
So now you know how to find your value zone.
It's time to pick the right vehicle to drive you
in a straight line to your destination.
(upbeat music)
Let me ask you a question.
Would you rather have a million dollars in assets
or earn a million dollars per year?
Think about that for a second.
Of course, you want both, right?
Well, to do this, you're gonna need two different vehicles,
one for making money and the other one for investing money.
Let's start with making money.
This should be your active vehicle.
Think of it like a motorbike.
You can choose between
a product-based business like I started,
a content business like making YouTube videos,
and my all time favorite, a service based business.
So why is a service based business my favorite
when I produce products and also make YouTube videos?
Might seem a bit strange, right?
One word, timing.
And I'm not talking about time in the market,
but instead, your career timing.
Your initial side hustle should have the potential
to rake in about 100K year.
But remember, the venture that catapults you to 1 million
or even 10 million a year is not gonna be the same.
When you are starting, resources are usually pretty tight.
So it's smarter to launch a service-based business
as it has minimal setup costs.
Even better if you could do it from a laptop
in your spare time.
So take a look at your diagram again
and brainstorm a service you can offer
within your value zone.
Now for investing money,
this should be your passive vehicle.
Think of it like the sidecar on your motorbike.
You know, like the one in Harry Potter.
Loads of people treat investing
like it's just another side hustle.
Chasing it with that same get rich quick mindset.
But here's the real deal.
Investing isn't about overnight riches.
It's a tool to grow your wealth,
and if you do it right, you can just set it and forget it.
After you've made your free account,
all you have to do is select pies.
These pies represent different slices of stock.
For instance, if you have a pie with 25% Tesla,
25% Meta, and say 50% Google, and you invest $100,
it will be divided amongst those stocks.
This means $25 would go into both Tesla and Meta,
and $50 would go into Google.
You can choose to make these investments
at a frequency that suits you, daily, weekly, or monthly.
Let's set one up together
so you can follow this video step by step.
You have the option to use pre-made pies,
and there's lots of options in here such as this one
that focuses on companies that pay dividends,
and this one here that invest in AI companies.
Although this looks simple,
please always do your own research into stocks
you want to invest in
rather than just trust in the pie creators.
This pre-made option is great to give you some ideas,
but I encourage you to make your own.
So let's go back to select Build a Custom Pie.
Now you can select whatever stocks
you want to include in your pie.
So if you're just the beginner,
then simply click the S&P 500 Index fund.
This allows you to invest in around 500
of the largest public companies in the USA
with just one click.
This value projection is really awesome as well
as it shows you just how much you could make
based on historical averages.
I mean, say we invested five pounds a day for 25 years.
This says that you will have only invested 45,000 pounds,
and your portfolio could be worth 1.04 million.
And if we expand that to 40 years,
you could have a portfolio worth 17.34 million.
But hang on, Mark, isn't investing risky?
Of course, stocks can go up and down,
and even the S&P 500 has seen good and bad days.
However, no one has ever lost any money
if they've held for more than 20 years.
Even when the market dips,
all past dips since 1950 have been made up for
by market rises.
In simple words, the S&P 500 shows
that playing the long game
and sticking with your investments can be really worth it.
It's personally made me millions
without me having to do any work.
That's why I'm such a big fan.
Since I'm planning to talk about the Trading 212 app anyway,
I reached out to them to see if they'd be interested
in sponsoring this portion of the video.
They agreed and are offering a free stock
worth up to 100 pound to anyone that uses the code Tilbury
when they create an account.
Plus, you get more free stocks by inviting your friends.
Both of you will get a free share
as long as they fund their account.
Right, now you've nailed down your value zone,
got your active money generating vehicle,
and set up your passive investment app,
it's time to think about the next section.
(mellow music)
One of the biggest lies gurus tell you
is that you need seven different income streams
to become successful and reach your end goal.
This causes people to get so caught up
juggling multiple income sources and their social lives
that they end up slowing down
and losing their focus completely.
You have three main limited resources,
money, time, and energy.
If you wanna do this with me, grab a piece of paper
and three different colored pens.
Firstly, make a list of everything you do in your life.
This should include everything.
Now draw a graph like this and divide it into segments
corresponded to the number of items on your list.
For my example, that would be six segments,
but for you, it could be more or less.
First, use a color to shade in the proportion of money
you spend on each segment every month.
Then use a color to shade in the amount of time
you spend on each activity monthly.
Lastly, use yet another color to show the amount of energy
each task requires.
You should have something that looks a bit like this.
Here's the key.
Your resources will always be limited.
While it might be possible
to increase the amount of money you have,
increasing your energy and especially your time
just isn't possible.
When I do this activity with people,
it's amazing how much they spread their resources
to all different areas of their life.
Now, I do get work/life balance,
but when you're trying to build your wealth at a quick pace,
you really can't spread yourself too thinly.
When I was building my first business,
I put my head down and I worked like crazy.
When I snapped out of it,
I'd lost a large chunk of my social life, I was outta shape,
and I hadn't spent very much time with my family.
Now, was that healthy?
Probably not.
But did it make me successful?
Very.
I devoted all of my resources towards a single business
for an extended period.
Once I achieved my dream of becoming a millionaire,
I began to restore balance to my life.
However, in the early days when I lacked money and a team,
any distraction could have derailed my efforts.
Focus is underrated nowadays.
I see so many motivated youngsters
jumping from side hustle to side hustle,
falling for something that's known as shiny object syndrome.
If I constantly switched business model
every time something got a little bit difficult,
then I'd have kept going back to square one
and never made any real progression.
So have a look at your graph of truth and ask yourself,
could you give up any of the things
that you are spending time on
and allocate your resources elsewhere?
Looking at this example, I'll get rid of TikTok, Xbox,
and dating straight away.
Now, look how much more time, money,
and energy I can allocate to side hustles.
This will dramatically reduce
the time it takes for you to achieve your dreams.
(upbeat music)
There's a great quote by Jim Rohn that goes like this.
If you really wanna do something, you'll find a way.
If you don't, you find an excuse.
So if you wanna close the performance gap,
then you need to understand the difference between obstacles
and excuses.
This is you, and these are your dreams.
Between you and your dreams are obstacles,
and these are what you need to overcome
to make your dreams into reality.
Looking back on my younger years, boy, did I have it rough.
I was dyslexic,
and my teachers would often label me as lazy and stupid.
I left school with no qualifications to fall back on.
And when I finally entered the workforce,
I was bullied by my manager.
These were the huge obstructions between me and my dreams,
but I never allowed them to be my excuses.
You may also be facing huge obstacles in your life,
but you must make it your mission to overcome them
in order to achieve your dreams.
Because if you don't, then those obstacles
become the excuses that block the path to your dreams,
and then you're just left staring at your biggest excuses
with your dreams just out of sight.
Excuses not obstacles are the single biggest reason
for people never closing the performance gap.
Whenever someone says to me, I can't do something,
I say this, I know you can't right now,
but if you could, what would you do?
If you're ever facing an obstacle
that seems impossible to overcome,
try and ask yourself the same question.
Come up with lots of different solutions
and write them all down.
The next step is to try those solutions.
You might find that many of them don't work,
but persist, and you will eventually succeed.
(upbeat music)
If you've been watching my channel for a while,
then you've probably heard me say
that your net worth goes crazy after 100K,
and the biggest reason for this is the compound effect.
It's rumored that Albert Einstein even said
compound interest is the eighth wonder of the world.
He who understands it, earns it.
He who doesn't, pays it.
I've shown in the past how true this is for investing money,
but this is even more important
when it comes to your knowledge bank account.
Most people failed to bridge the last section
of the performance gap
because when they leave school, they stop learning.
Let me show you why this is a huge mistake.
These initial blocks symbolize the basic concepts
and principles you learned at school.
For me, that was the basics of English and maths.
Continuing to place yourself in challenging situations
enables you to keep learning and growing after school.
I began working as a carpenter's apprentice
and also had multiple side hustles.
This experience taught me practical skills
on how to persuade others to pay for my services.
As you expand your knowledge,
you'll start to notice patterns
that were previously invisible.
Each new piece of information builds upon the last.
If you never stop learning,
you'll accumulate a wealth of knowledge
by the time you reach my age.
This is why wisdom can only be acquired
through time and experience.
Now, every decision I make is supported by
decades of learning.
If you never had the foundations,
then you can't start the compounding knowledge magic.
Then you'll end up with huge gaps in your knowledge,
which will eventually lead you to
(blocks crashing) crashing and burning.
Closing this performance gap is gonna be painful,
but remember this,
if you aren't willing to make sacrifices for your dream,
then your dream becomes the sacrifice.
If you wanna understand the compounding effect even more,
then you should watch this video next
where I explain how net worth goes crazy after 100K.
But don't click on it just yet.
Make sure to subscribe if you want to grow your wealth.
Okay, I'll see you over there.