The financial patterns that you establish in your 20s are critical.
They're actually going to determine where you're going to be in your 30s,
your 40s, your 50s. And some of you right now watching this video, if you don't
like where you're at financially or if you feel like you're maybe off track in
some way. Or if you're just trying to enhance or make things better, it starts
in your 20s. Now, regardless of your age or where you're starting, today; I want to
share with you what you should be doing in your 20s. There was a plan that I
started when I was 21 years old. And by the time I was 26, I was financially free.
I'm going to share all those rules. I'm going to share what I did with my money. And
how I've allowed that to multiply and grow from there all the way to today.
So, I'm here in studio today. And this entire studio is being run by like a
bunch of super young Millennials. Like, check this out right here behind this
camera. This is Perry and I'm like, "He,y we're about to shoot a video about like
how to like make money in your 20s. And how to manage your money." She's like, "Wow!"
Look at Louise over here. I got Louise by the camera. He's
like I'm hoping that Kris says something that gives me that moment. Because I'm in
the middle of my 20s and I'm thinking, "You know what? I was in my 20s when I
decided to rail against society's game plan." And basically come up with an
entirely different management style. And basically figure out "You know what? if I
got this one life to live, I am NOT going to throw it away just doing what everyone
is doing." Because you know what? I don't want what everyone's got. And you have to
decide for yourself ultimately first what do you really want. So, it's going to
determine and influence money. Because the reality is... I became financially free
at 26. And before I show you what I did to get there, I want you to first
understand like what was motivating me and what was driving me. Because if you
don't have this one missing component, then I think you're going to be like up a
creek without a paddle. Is that what they say? That's that? Yeah. I said it right. So,
when I was 19 years old, I had a night near-death experience. I had gotten out
of high school and I was having a kind of like last family vacation hood of my
childhood. And off of Portland, Oregon in the cold waters off the little beach of
Cannon Beach. And I had gone out to far. My sister had gone out further than me.
She was having a hard time struggling swimming back in. And you know, bottom
line is we lost control. I went out there trying to save her. I couldn't swim us
both back in. Help didn't come. And I started thinking about all the things
that I regretted. And for 19, I hadn't really created any value. I didn't
done anything. You know, the village had put all their energy into me. And now, I
hadn't even gone out and done anything cool yet. And I just didn't feel ready to
go. I didn't feel ready to to die. And I decided that I really wanted to
live. And a prayer was answered. A big wave came and helped my sister and I
literally come back ashore. And it was a miracle. And that experience has really
caused me to valuate often. And even on a daily basis like,
"What can I do to make today epic? What can I do to make today an extraordinary,
special, incredible day?" And so this idea, I got you know, if you watch that
movie you know what's that movie about planning ideas in your head?
And thank you inception. And this movie, I thought it was so inspiring because it's
all about if you can plan the right idea, it can basically shift the entire course
of your destiny. The idea that I became obsessed with was this: I don't want to
live a mediocre life. My parents fought about money. I never want to fight about
money. And I don't want to be rich so that I can have all this nice stuff. I
want to be rich because I want to be free. I want to have the money so I can
live life on my terms. And that was the idea that like it possessed my soul. So, I
started asking, "What's everyone else doing?" And they decided I can't do what
everyone else is doing. Let me show you what that looks like. Everyone at that
time in my life. this is what they were all doing. Number one, they were all going
to college for the same reason I was. My parents said that college was the only
way to get where I wanted to go. My dad was an entrepreneur. It was hard work and
he said, "Son, if you go to college and get a job,
life is going to be better for you." So, I'm in college... And when you're in college,
what you start doing is evaluating the careers that you can go after. And at
first, I wanted to be a doctor and then I figured out as to dumb to pass the
science classes. So then, I was dumb enough to think, "Oh, I'm going to be a
dentist." But then I learned it's the same science classes .So, that one lasted like
a week. After deciding that I wasn't going to be a dentist, then I decided
that I loved psychology. Like I love how people think. But I'm like psychologists
are making like 50, 60, 80 thousand dollars a year. That sucks. It's less than
a doctor. And then I was like, "Well, I love teaching. So, I'll be a teacher." And then
I'm like, "Oh, my gosh. Teachers are like one of the most noble
and underpaid positions on the planet." Then I was like, "Oh, maybe I want to go
into marketing." I looked at all of these careers and here's what they all share
in common: You're going to make between 50,000 and $200,000 a year. And this is
what I saw: This is the problem. This is the problem. You see that kind of money
that does not allow you to live the life that you want. Because then I started
doing the math. I like math, by the way. And I aced my stats class. So, I sucked at
science. I rocked in math and I started looking at the math of the world
trying to understand the way everything worked. And I said, "Okay. Here's the
problem. Very few people make $100,000 a year. But if you do make $100,000 a year,
it's still not a lot of money." Because bottom line is you're probably going to max
out at a $3,000 a month mortgage. Which means that you can afford... I don't
know. Maybe like a $400,000, you know... $400,000 home. So, I'm like, "Okay,
it's nicer than average. It's not crazy nice." I'm like, "You might be able to take
1 to 2 vacations." And these aren't going to be lavish. You'll get to drive you
know, 1 to 2 basic cars. And then you have a job. Now, of everything on this
list, do you know what was the most upsetting to me? It was this job thing
Because the job thing wants 40 hours of my prime time every single week. So, I
started looking at the system I'm like, "Hey, this kind of sucks." Let's do the math
on what is really happening here. Because by the way, trust me. This leads into how
you want to manage your money. Because I started realizing, "Wait a second. If I do
what everyone else does and I'm with the lemmings that are going up over the
cliff and the edge, what's the problem?" Dude, the problem is that I'm going to get
what everyone's got. I'm going to have a basic life, I'm going to have a basic house.
I'm going to have basic cars. I'll have some mobility. I'll get basic, very limited
travel. And then that's going to be my life. Now, don't get me wrong. There's a ton of you
there like, Kris, I want that. That's an amazing life." Good! There's a whole system
set up for helping you get that. But I actually sat down and said, "No, no, no." Redo
this. If I could have anything I wanted, what would I want? I said, "Okay. If instead
of making $100,000 a year,
what if I made a million dollars a year?" Okay? Then I could have any size of house
that I really wanted. I could have unlimited vacations. I could have any
cars that I wanted. And I don't want a job and I don't want the 40-hour
workweek. So, like I basically said, "Fine, I want that." So, how do I get that?" And I
started like I've met with my counselor. I'm like, "Okay. So, I'd like to make a
million dollars a year and I'd like a big house And I'd like to have no job.
What job would you recommend? Like what careers going to help me get that?" And you
know what they all looked at me. And they had no answer. And they told me I need to
get a reality check and they should get my head checked. And that's when I
realized. What I want cannot be found inside the walls of this institution. And
it wasn't just a building, it wasn't just these walls. It was society. Society has
this plan on what they think is best for us. So, I decided that I would have to get
my education elsewhere. I promise you, I'm coming back to how you budget your money.
Because when I drop this on you, I want you to get it. So, I said, "Okay. I can't go
to university to find what I want. Because University is for people who
want 50 to $200,000 a year career. Most of them deeply under
$100,000." So, that's what university is good for. Because I don't want that, I'm
not going to pursue that." I said, "Well, who do I go to that can teach me how to make
a million dollars?" And I'm like, "They're not found in an institution. This would
have to be individuals called mentors." And what's a mentor? Well, this is a
person that already possesses the result that I want and then actually can show
me the way. They have it, they can show me how to get there. So, I started hiring
mentors. And they're not very many of them. But I found that there are
individuals out there that actually had already achieved everything that I could
want. And I started learning from them. They taught me real estate. They taught
me business. T hey taught me a different mindset that I wouldn't get in college.
Taught me emotional intelligence. They taught me how to break through my
limitations. They taught me how to overcome thinking that a million dollars
was a lot of money because it was just an amount. It wasn't neutral and if I
judged it is a lot that I might never get it. And I started learning all these
valuable things in a different version of Earth School. And I started getting my
education from people that possess the results that I wanted. Let me show you
now an answer to your question what I learned. Here's what the majority of
these people taught me about money. Number one,
P-Y-F. It stands for pay yourself first. You are not going to work for your bills.
You're not going to work to keep up with the Joneses.
You're actually working so that you can arbitrage leftover money that you're not
spending on your bills. You should find a way to keep your living expenses in such
a manner that there's 40% of your money left over. If you only make 3,000 a
month, you need to find a way for 1,300 dollars that are 1,200
of that to be leftover. That doesn't go towards bills. This money is to pay you.
And what you do with that money number two is you have to learn how to invest.
Which is how do I now make my money go to work for me?" So, this is now taking my
money. And guess what I'm teaching it how to do? It's got to learn how to make
babies. I'm not talking about the birds and the bees of people. But I'm talking
about the birds and the bees of money. Which is how do I get 1 to form 2.
How do we get 2 to form 4. And you have to become the master of how money
grows and works. This by the way led me into a journey of real estate. And this
led me into a journey of business. These 2 things have made me more money than
anything else. Now, I've got a variety of other investments. But I've learned these
2 things. Then the third thing... So obviously, there's a ton of discipline
with how to save half of what you make, then you've got to learn how to invest
it. No. No, no. You don't hand that off to a 401k goofball. You don't hand that over
to an IRA financial planner. You don't give your money to these stupid things
that produce. Part of learning how to invest is actually learning how the
wealthy make money. The wealthier not putting their money on 401Ks to be
trapped in a job because the company will match up to 3 to 6 percent. No, they
don't do any of that jazz. They don't put their money in IRA.
You kidding me? The wealthy are doing different things with their money. So, you
have to study what the wealthy are doing. Again, you do that with mentors. So, you
pay yourself first. You invest and then the third thing that you do is you learn
how to become an owner. Because most your journeys is that you're going to get lost
in your business. And you're going to make the same mistake that people in
jobs do. You're going to trade the best 40 hours. I lost a decade trading 80
hundred hours for something giving me so little in return. Until I finally learned.
I don't want to be a business operator. I want to be a business owner. The
difference is that the operator gets tired working 50, 60, 80 hours a week. And
the business owner lets everyone else do the work. Pay yourself first. Learn how to
invest. And then learn how to become an owner. you do these three things. And
ultimately that's what's going to set you up in your 20s for ultimately very
different results. Now, I'm making this video today because only you can choose (Louise)
whether this is the moment, whether you take that information and say, "I'm
creating my magic moment where I'm going to listen to this and I'm going to implement
this and I'm going to change my life and I'm going to hearken to it. Only you
watching this video can decide that things are never gonna be the same again.
And that you're going to institute a way for 40 cents of every dollar to get
taken out of your account that can't be used for bills and surviving and food.
You've got to live for more. Which means you got to create more you're creating
your tomorrow by learning how to take 40% of that money. Learn how to invest it
and start small. Put 1,000 bucks out there and demand that it produced $10
a month for you. Put a five thousand dollars out there and demand
that it produce 300 bucks a month for you.
Buy an investment property. Get that thing earning for you. Do anything.
Anything! Take a risk the biggest risk is following society's game plan because I
can tell you where they all end up. As a young man in my early 20s, I interviewed
thousands of people in their 50s and 60s who had been to college, had been house
pair offers, 401k-ers IRA-ers. And I'll tell you right now, they were not happy. They were
petrified, terrified, panicking about their financial future. Ultimately,
if you want a different destiny, then you have to reverse engineer and ask "What is
it going to take to get there." For me, this conversation is not about money. All of
this adds up to just one thing. Freedom. In a couple of months, my family
and I are going to leave the country for a couple of months. We're literally going
to start in Hawaii. We're going to island hop. We're flying in our private teacher
to work with them a little bit. We're going to go to Pearl Harbor, the PCC, road to
Hana. Helicopter back. Then we're going to hop over to Fiji. Then we're going to hop
over to Australia. We're going to go over to Melbourne. We're going to drive up the
entire coastline. We're going to go to the interior. We're going to visit the
aboriginals. We're going to wind up on the other side. And we're just going to see the
world, we're going to tour the world. Because that's what I want. For me, my freedom is
to take my kids around the world and learn the way other people live. And
learn what they learn. And then to bring in the best experts so they can learn
from the Masters. Now, you want something different than me and you should. That's
the beautiful thing about freedom. We can all want something different. But if
you're wondering how to manage your money in your 20s, this is what I learned.
And ultimately this means that you have the possibility for living the life that
you want. Whatever you want in most cases, not all, it's going to take money. And money
equals options. And options equal freedom. So, if you want more freedom, you want
more options. If you want more options, you need to master the game of money.
Which means this is the time in your life when life will never get as cheap
as it is right now. And learn how to live below your means. Take the extra, invest
it. My friends that's the message for today's video. I hope you liked it.
I designed it all for you. And I shot another video. It's got several million
views. And it's all about what I did to achieve my financial freedom by the age
of 26. Beyond this advice there were 4 more
things that I chose to do. And I reveal them in this next video that you can
check out. And it's actually a 4-part series showing you specifically how I
leverage wealth in the game of real estate. So, I want you to click on the
video up here in this corner. It'll take you over there it'll show you exactly
how to do it. And for those of you that you know, want to get a copy of my book,
learn more for me and my team; all those links are
in the description below. But I want you to watch this next video because it's
gonna piggyback right on what we've been talking about today. It's designed to
help you achieve your destiny.