So you want to become a millionaire
and everyone is telling you to read books
but hardly anyone's got time for that.
Luckily over my many years in business,
I've read hundreds of books,
but there are 40 money making books
that have really stuck with me.
So in this video, I'm gonna condense all of these books
into the core lessons that will actually make you rich.
And no, I'm not just saying this,
I have experienced doing it.
I've gone from absolute zero to making tens of millions
and I didn't make my money on YouTube
like most people on here, I did it running real businesses.
So I promise that the things I'm gonna share with you today
will take you from $0 to $100,000,
100,000 to a million, and a million to $10 million
if you apply them correctly.
Level one, going from zero to $100,000.
First, you need to master your mind.
I didn't come from a wealthy background
and during my youth I vividly remember
people saying the phrase,
money is the root of all evil.
"Secrets of The Millionaire Mind" explains how these phrases
program us to believe that rich people are the devil.
It took me a long time to rid myself of a negative feeling
in my stomach when I thought about making money.
If I'd have read this book sooner,
it would have helped me realize this issue earlier.
Once I got over this hurdle I had to ask myself,
what is money actually for?
For me the answer was freedom.
"The Psychology of Money" puts it a little differently
and says it's all about control.
But I suppose the goal is the same,
to be able to do whatever you want whenever you want.
It also touches on how there's a clear difference
between the rich and the wealthy.
Wealth is what you don't see.
The car is not purchased, diamonds not bought,
renovations postponed, clothes for gone
and first class upgrades declined.
Unfortunately, many people don't even believe
that they can become wealthy.
I remember my schoolfriend saying things like,
"I hope I can get an okay job when I graduate."
They weren't even hoping for a good one.
"The Magic of Thinking Big" explains that people
are setting their finish line too soon
and therefore never have a shot at being successful.
While I don't believe that thinking big alone
will make you successful, it's certainly the first step.
I always struggled in school and felt like a failure.
Interestingly, when I left and started working
in the real world, I found that I kept winning.
This was probably because I chose jobs I had an interest in
rather than learning things I didn't care about at school.
"The Winner Effect" talks about actual studies
to back up this phenomenon.
The book discusses how positive correlation
has been found between successful stock market traders
and their testosterone levels.
Furthermore winning increases the testosterone receptors
in your brain which causes you to win more in the future.
That's why it's important to set those achievable goals
and get those little wins every day.
I believe that my struggles in school
and my strong drive for success
had a positive impact on my life.
They left me with no other option but to push forward.
"Think and Grow Rich" tells a story about a great commander.
Despite being outnumbered by a far superior enemy,
he burned his army's own ships
leaving them with no escape plan.
This forced his soldiers to fight with everything they had
resulting in a miraculous victory against all the odds.
It just shows there's a big difference
between wanting to succeed and needing to.
Being comfortable is just as harmful
as having an escape plan.
During a chat with Andrew Tate,
he referred to this as one of the matrix's tools.
"Unscripted" also presents this idea.
The author argues that society aims to transform us
into model citizens, which stands for mediocre,
obedient, dependent, entertained and lifeless.
Avoiding this fate depends on how well
you can manage stress.
"The Essence of Success" gives us a helpful perspective
on this.
The book mentions that all the water that forms a fog
that's 100 feet deep and seven city blocks wide
can fit into a small glass.
Whenever I feel stressed I like to imagine
drinking this water and using it as fuel.
Now you can develop great habits.
Stress can also come from factors outside our control.
For this reason, I've made a conscious effort
throughout my life to only focus on things
that I can directly impact.
"Atomic Habits" reveals that many people fixate
on the end goal, which they have no control over
rather than a process of achieving it
which is completely in their hands.
I found the author's habit stacking technique
to be particularly helpful for forming new habits.
It involves pairing a new habit with an existing one
so both are completed at the same time.
However, most people just keep putting things off
and never form good habits.
I know far too many people just go through the motions
without any direction and before they know it,
time has run out.
"The Seven Habits of Highly Effective People"
stresses the importance of always knowing
where you are going and thinking about
how you want to be remembered.
I know this provides me with extra motivation
but this is only one part of the equation.
The 12 week year suggests treating a year as 12 weeks
to create a sense of urgency.
This really hit home for me
as I know I work best under pressure.
Although short-term pain is often necessary
for long-term gain, it can be difficult to remember this
when faced with challenges.
"The Art of Getting Things Done" emphasizes the importance
of not relying on your brain to remember all your tasks.
Instead, capture them on a phone or a notepad.
This way you can organize your task
without getting them confused
and you can also be selective with how you spend your time.
"Essentialism" reminds us that for every task we say yes to,
we have to say no to many others.
Therefore, it's important to value yes
and not be afraid to say no.
After adopting these habits
you should start building high value skills.
I've previously said that I don't like the advice,
follow your passion.
However, "So Good They Can't Ignore You"
takes it one step further.
The author interviewed many people who loved their jobs.
He found that most of them didn't initially
have a passion for their work.
Rather, as they improved their love for their work grew.
So what skills should you start building
if you aren't necessarily following your passion?
"The Unfair Advantage" suggests that to succeed
in an unfair world,
you need to play to your natural strengths.
Find what you are better at than most people
and lean into it.
However, it's no longer enough to just possess
high value skills.
Artificial intelligence is rapidly replacing many jobs.
I'm using it more and more in my various businesses
to complete simple tasks.
That's why the idea is shared in "Mastery"
are more important than ever.
My main takeaway was that you need to develop
a unique stack of skills that is nearly impossible
to replicate.
"Steal Like An Artist" echoes this point
when it suggests to copy from multiple inspirations
until you have a mix that is truly original.
Having this unique skill stack will give you the ability
to earn a high income.
However, that still won't mean you can build wealth
without understanding the basics of personal finance.
When I was younger, I had a mentor named Dave who taught me
about how the rich managed their money.
The biggest lesson I learned which is to also shared
in "Rich Dad Poor Dad" is that everything we buy
is either an asset or a liability.
To figure out which one it is,
we simply have to ask ourselves,
is it putting money in our pocket or taking it away?
Of course, if you want to be wealthy the aim should be
to buy as many assets as possible,
but lots of people don't see the value of investing.
Let me ask you this.
Would you rather have $3 million now
or a penny that doubles every day for 31 days?
The correct answer is the penny
because it actually turns into 10.7 million.
"The Compound Effect" uses this analogy to demonstrate
the power of investing and gaining compound interest.
Once most people get their head around this,
they get very excited but end up jumping into the markets
without really understanding anything.
That's what happened in the pandemic.
Everyone thought they knew what they were doing
but it was just a massive bubble waiting to burst.
That's why I've always followed the principles laid out
in "The Little Book of Common Sense Investing."
It states that trying to beat the market is a losing game.
Instead, you should own the entire market.
You can do this by investing in something
like the S&P 500 or a broad market index fund.
Interestingly, over a 35 year period,
only 1% of mutual funds could beat the market by 2%.
This means that index funds are a clear choice
for the average investor.
Although, as I do find them pretty boring,
I also like to invest in more interesting stocks
with a smaller part of my money.
Whenever I do this,
I keep in mind that the market is irrational.
As "The Intelligent Investor" puts it,
you should imagine a person come into your door
every day called Mr. Market.
One day he may offer you $2,000 for your stock
and the next only 500.
Even though the company may be doing better than ever,
this is because the price of the stock is based on demand
and not the actual real world value.
I only buy stocks if I'm prepared to ignore
what Mr. Market says for a long time.
Another phrase I live by is,
if you love the store, chances are you'll love the stock.
Which will shared in, "One Up On Wall Street."
This means if you've got a lot of experience of a company
or product, you might actually have a bigger advantage
than the pros when it comes to investing.
Before we get to the next level
I have to make one thing clear.
Reading books on investing can provide you
with theoretical knowledge,
but to truly succeed in investing and build wealth,
you need to put that knowledge into practice.
So if you are going to invest,
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Level two, 100,000 to $1 million.
Now that you fixed all your internal beliefs
to make the next leap, you'll need to know how to generate
more value than you can from just selling your time.
We're taught to go to school, get good grades
and then get a high paying job.
However, when you do this, your earning inability is capped.
"Cash Flow Quadrant" outlines four distinct ways
to earn money.
E for employee, S for self-employed, B for business owner
and I for investor.
Business owners and investors have the advantage
of using other people's time and money
to build their wealth.
That's why it's crucial to move to the right side
of the quadrant if you want to become rich.
But what does it really mean to be rich?
Well, "The 4-Hour Work Week" explains this best
when it says that relative income trump's absolute income.
To understand his statement, let me ask you a question.
An investment banker earns 500,000 per year
working 80 hours a week.
On the other hand, an e-commerce entrepreneur
earns 40,000 per year but only works four hours per week,
who is richer?
If we look solely at absolute income,
then the banker is clearly making more money.
However, if we consider the time worked,
the banker earns $120 per hour
whereas the entrepreneur earns $200 per hour.
To take it one step further,
the entrepreneur can actually already live the retired life
that the banker dreams of
as he can operate from anywhere in the world.
I'll take the entrepreneur route any day of the week.
"Zero To One" states that the first step
to starting a business is betting on a contrarian truth.
This is the basis for most successful businesses.
For example, Netflix had to bet on the fact that people
wanted a binge watch TV shows at home,
and Airbnb had to believe that people would be willing
to stay in a strangers house.
For many people the biggest hurdle
is coming up with an idea.
However, this is often easier than you might think.
"Disrupt You" outlines an effective method
which is to write down three things that annoy you every day
and think about how they could be done better.
By doing this, you'll have 90 ideas to consider each month.
When you have an idea, don't be afraid to share it
with people that can help you.
People tend to be too protective of their plans
but the truth is, that an idea alone is usually
not that great.
"The Lean Startup" emphasizes the importance of execution
and the use of the build, measure, learn, feedback loop.
This approach ensures that you don't create
something nobody wants,
and allows you to pivot and adapt your idea as you go.
There was an interesting study conducted
on 108 new businesses across 30 industries.
Out of these, 92 businesses chose to enter red oceans
while 16 adopted a "Blue Ocean strategy."
A blue ocean refers to a market has little
to no competition, while a red ocean is named so
because of the fierce competitions between competitors.
The study found that 39% of profits came from businesses
in competitive markets,
while 61% of profits came from those
that used the blue ocean strategy.
Furthermore, these businesses went on to dominate
their industries for 10 to 15 years after launch.
A good strategy for creating your own blue ocean
is to become "Oversubscribed."
Consider Ferrari's.
Many people want them but not everyone can have one.
Yet, the people that run Ferrari aren't losing sleep
over this as they know that this scarcity
keeps demand high and the cars highly desired.
Every oversubscribed product has people
who are willing to buy it but can't get their hands on it.
When I'm driving up demand for my products,
I always remember the core lesson
from "Breakthrough Advertising."
This book is actually the most expensive book in the video.
It states that you can't manufacture desires,
instead your job is to create a product
that fulfills the already existing desires.
Level three, $1 million to $10 million plus.
Elon Musk wouldn't be nearly as successful as he is today
if he didn't have the ability to inspire others
to make his visions a reality.
"Influence: The Psychology of Persuasion"
is one of the best books on this topic.
I've been using this principle in my model shops for years
as my employees are encouraged to help customers
with quick repairs for free.
I know that if we do this,
the person is far more likely to come back in the future
and make a much larger purchase.
You can use this with anything.
Just focus on giving value
and eventually, it'll come back to you.
Dealing with people comes with a lot of headaches.
You can't compromise on your vision
but you also need to make sure that people don't resent you.
"Never Split The Difference" says you can do this
by using something called tactical empathy.
The key is to empathize with someone's situation
to get them to empathize with yours.
People want to be heard and as mentioned
in "How To Win Friends and Influence People"
they don't wanna be told they're wrong.
The reality is all humans are emotion led creatures.
They tend to make their decisions with this in mind
and then justify their actions with logic.
"Pitch Anything" explains this
as having three different brains.
The croc brain which developed when we were mere animals,
the mid-brain and the neocortex
where we make all of our decisions.
Most people try to appeal to the neocortex
when they want to sell something,
but first you need to break through the croc brain.
You can do this by using emotion
and making what you're asking for as simple as possible.
Leadership is something I've spent a lot of time
learning about because the better you are at it
the more money you can make.
"Start With Why" shares a useful tool called
the Golden Circle.
Where why is it the center, how is in the middle ring
and what is in the outer ring.
Bad leaders start from the outside
and rarely get to the center.
This is like my teachers at school who told me to read
because that's what I needed to do
but never inspired me to take action.
On the other hand, my mentors told me
that if I wanted to become wealthy and have freedom,
I should read specific books
and they gave me recommendations to achieve my goals.
After that, I really saw the value in books.
The key here is that great leaders inspire you
to take action,
they don't tell you to.
It may surprise you but all leaders
are pretty calculated people deep down.
Reading "The 48 Laws of Power"
opened my eyes to this even more.
One of my favorite laws was number 11,
learn to keep people dependent on you.
This is so true as an employee and a leader,
if you can be replaced by someone
you can never truly have power.
However, if your future business is dependent
on irreplaceable people, it will eventually collapse.
The reason why 80% of new businesses fail
is that the person running it does not understand
how to build systems and processes.
"The Emyth" outlines how most people who start businesses
are not entrepreneurs,
but rather just good at a certain skill.
For example, someone who makes good cakes
may not necessarily be able to run a successful bakery.
These kinds of entrepreneurs often over invest
in their businesses hoping that one day
they will turn a profit.
However, what often happens is the income slows down
while expenses remain high
leading to the closure of the business and no profits.
That's why adopting the strategy described
in the book, "Profit First" is crucial.
The book proposes that entrepreneurs
should run their business with the calculation,
sales minus profit equals expenses,
to ensure that they're always profitable.
I believe one of the primary reasons I've succeeded
in business for so long is by specializing
in one specific niche, radio controlled models.
Although it may seem small,
I know I could be the best in my field.
"Good To Great" describes this as having
a hedgehog mentality.
Each day the fox attempts new tactics to catch the hedgehog,
but every time the hedgehog rolls into a ball,
using this tried and tested strategy to avoid being eaten.
Being extremely good in one area makes you rich
in the long run.
Up until this point, I have a discussed world events
as they relate to the bigger picture.
This is because I believe that you need not worry
about them until you have the power to influence them.
If you have a considerable amount of wealth,
it may be worth reading "The Fourth Turning"
which suggests that every century consists of around
4, 25 year historical blocks called the high,
awakening, unraveling and crisis.
Another good one is "The Change in World Order"
which discusses the idea that every major superpower
has its time and eventually declines.
These can provide a perspective on how events
and trends may impact the economy and society
which can be useful for making informed decisions
about investments and business ventures,
but aren't necessarily something to worry about
if you haven't made at least 10 million, in my opinion.
I'm gonna leave the next video right up there
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.