- So I'm going to give you some tools today
and also some principles, some secrets that I know of.
They're very simple secrets by the way,
They're not complicated.
So secret number one: You have to know your magic number.
You have to know your magic number.
I'm not talking about doing a magic trick,
I'm talking about magic number, okay?
What is a magic number?
The reason you're not making the kind of money
that you want to make is because you have not made it a must
a must to continually increase the worth of your time.
Hustling, working on things and a lot of activities,
very busy, but you have not made it a must.
It is not an intention, it is not a goal
to continually increase the worth of your time.
Think about the people you've just mentioned,
the people that hustling hard all their lives,
they are working hard but they never slow down and step back
and say "What can I do to increase the value of my time?
"What can I do to improve my earning potential?"
- Right.
- They never ask that. They just, you know what,
if I'm making minimum wage with one job
they would just get a second job. That's hustling.
Versus "Hey, you know what? The hourly rate that I'm making
"this is not enough. What can I do to be worth more?"
It's a very different way of thinking.
- Time is money, boy.
- So, two questions. Do you know what your time is worth
right now? Do you know what your time needs to be worth?
Do you know what your time is worth right now?
And do you know what your time needs to be worth?
Let's do this right now, let's do it you and I,
let's do this together, okay?
I want you to grab a pen, grab a piece of paper,
I want your little pen in front of you,
Let's do this together right now.
This number will change your life,
this is the number I'm thinking every damn day.
Every damn day. So, let's figure this out.
What is the amount that you would like to make this year?
Write it down for me.
Whatever you feel like you could do. Right that's your goal.
Only your goal and nobody else.
Don't compare yourself with anybody else.
Compare yourself to you.
For simplicity, for discussion, let's use $100,000.
If you want to make more than that
just change whatever the number.
250, 300, whatever the number is.
But for us, you and I, let's use 100,000.
It's a simple number.
So, think about, let's say you work eight hours a day,
times 220 day, 'cause you and I we need some time off too,
right? - Yes.
- Let's say 220 days a year, eight hours a day
220 days a year, that gives you 1760 hours.
So what we want to do is wanna take your income goal
which is $100,000, I want to divide that by 1760 hours.
- Yes.
- Now that gives you 56 bucks. About $56.
But that's not your magic number yet.
I want you to take that number and times that by three.
Now why do I need to times that by three?
- Is it because of tax? Is it because what--
- Because - Time wasted?
- If you and I are honest, we are not always productive.
There's no way you're productive eight hours a day,
every single day, and then 220 days a year.
- So we're not productive 1760 hours?
- So I want to give you a tougher number. Then you know,
You and I are not productive, you know what I mean,
sometimes you walk in on something important,
then you get distracted, you're checking emails,
you do a bunch of shit that doesn't really matter.
You're wasting time. So we want to times that by three.
If you want to make $100,000 a year by the end of the year
your time is going to be worth about,
round number's $170 per hour.
So ask yourself, is what you're doing worth, right now,
170 bucks an hour?
You want to be a millionaire? That number and add a zero.
Each hour you work, you need to be earning $1700 per hour
if you want to be a millionaire. Think about it.
Then ask yourself whatever you're working on right now
is it worth 170 bucks an hour?
- Very sobering. - Right?
So anything that doesn't make you 170 bucks per hour
it is fucking costing you money.
- Mowing the lawn? Costing you money.
- You might think "I don't want to hire other people
"to mow my lawn."
Hypothetically it's like 20 bucks an hour.
"Oh, I want to save the 20 bucks"
No, you didn't save 20 bucks. That thing just cost you $150.
You mow your own lawn, that just cost you $150.
- That makes sense.
- Because your time needs to be worth much more than that.
Getting this? When you know this number
there is a lot of shit you cannot do.
You cannot afford to do!
You cannot look at "Oh, I want that income"
but you're not changing your hourly rate.
How many of you want to make $100,000
But yet you're fucking doing stuff that's like...
- Yeah, Netflix.
- --That is making 170 bucks.
- They'll drive halfway around town just to save a few bucks
- I have an uncle in Vancouver who does that.
- Really?
- He would drive all the way to the US
- Yes. - Back then.
To get like a dozen eggs and some milk and get the gas.
Waste him hours of time and he would save a few dollars.
- 10, 20 dollars.
- Not even that. - Really?
- It's like very little. He doesn't value his time.
They think they're saving money, you're not saving money.
It's costing you money. It's costing you money, right?
Because we need to face the problem first
before we can fix it. We've got to look at it.
"Okay, I'm doing a lot of minimum wage activity.
"This is stupid. This is not getting where I want to go.
"This is not helping me achieve my goals, right?"
You must eliminate, I mean eliminate, the need
for you doing the activities that do not match up
with the value of your time. Period.
You cannot make $100,000 with a minimum wage habit.
How could you earn $170 per hour every hour that you work
when you're fucking doing $10, $15 thing per hour,
and at the end of the year you look at
"How come I'm not making the kind of money I want to make?"
Just look at how you invest your time.
I don't need to look at how likely you're going to
accomplish your goal.
If you and I sit down and have a conversation,
I just need to listen to you, what is you goal?
And tell me what you do on a day to day basis?
I can read it like a crystal ball.
By the end of the year I know exactly if you're
going to hit your goal or not hit your goal.
This is not rocket science here.
If every single day you spend five, six hours
doing stupid shit that is like minimum wage work,
you're never going to hit 100k, you won't even hit 50k.
It's so simple and so profound,
because when you look at that then you know a lot of things
that you think will solve your problems,
they actually don't solve the problems.
You might think "Let me just hustle."
How does hustling help you increase your earning ability?
If you're still making $12, $13 an hour hustling,
you're still making $12 and $13 an hour.
You need to think about "If I want to get 100k,
"I don't just need to double, triple, I need to fucking--
- 10 x that or something - 10 x that.
- I need to increase that product ten times
or eight times or seven times.
That is not something that you can solve just by hustling.
When you get that, that's why the whole hustling concept
it is ludicrous. It's dumb. It doesn't take account for time
- And it's very sobering. I think a lot of us have
got into the habit, I was guilty of doing this,
sometimes we justify, we tell ourselves lies, you know?
"Oh yeah, I'm mowing the lawn because it's good exercise
"I'm relaxing. It allows me to relax and then I can
"go do more work later"
- If it is something that you enjoy,
that you actually love doing it.
- And it's part of my-- - It's part of your thing.
Some people they like gardening,
where to them it's almost like a form exercise.
They find enjoyment. No problem. Do that.
- But if they're doing it to save money?
- Doing it to save money, then don't pretend you're doing it
"Oh, I really enjoyed it" but deep down you're like
"I hate this shit. Why am I washing my dirty car?
- Right
- "What the fuck am I doing here". Just think about it.
- Yep, that's true.
- You will never be a high income earner
if you keep doing minimum wage activities.
Say it with me: I will never become a high income earner
doing minimum wage activities.
Period. Period.
So, goes back to your question,
a lot of those task where sometimes, a lot of time,
it's we learn that from our parents.
- Yes. - Right?
- How many learned that from their parents?
Right? - I did.
You learned that from the parents.
That's what you're supposed to do.
You hear some people say
"Oh, come on, you should wash the car yourself
"Do your own taxes, mow your own lawn"
- Don't trust those guys to wash your car,
they're going to scratch the paint
- Be a man, like, be a man, be a man! Mow your own lawn.
Fix your own damn car and stuff like that,
it's an honorable thing to do.
That's how the way we were brought up. Right?
The problem is this, if that is what you enjoy doing
you need to go in with a very realistic,
like a very realist perspective.
- All right.
- Meaning this, when I sit down, say we go to the movies
- Yes - We go to the movies.
- We do enjoy movies.
- We go movies. Very very clearly, here's how my mind works.
Learn this. I go in the movie theater
I know that movie didn't just cost me 20 bucks,
that movie cost me $20,000. It's a $20,000 movie.
Because my hourly rate is 10k. It's actually way more
than 10k - Way more than, yep.
- But let's use 10k for example.
I know that's a $20,000 check that I wrote
for the two hours of entertainment.
- Right.
- I need to be okay with that. In my mind.
I don't go in and "Oh, it's just 20 bucks"
It's not 20 bucks. I know I'm writing a check for $20,000.
So if I'm okay with that, then it's fine.
Not going into, oh yeah it's just-- No, it's not that.
Their movie just cost-- Okay, they spend $100 million
making it, I spend 20k. Okay, it's a good deal.
It's a good deal, but that's how I see my time.
That's how you need to see your time.