Hey what's going on everybody this is Sam Kwak one of the Kwak Brothers and
with the Black Friday and Cyber Monday shopping week behind us
daniel and I are going to talk about the 10 things that millionaires
don't buy in fact we stay away from these things like the plague or I should say the coronavirus
now guys i want to be upfront with you by saying that i have a very hard time personally
introducing myself as a millionaire yes we have a business producing a worth million dollars
daniel and i have several real estate and we control a fairly large share of a private
equity fund but despite this i generally don't introduce ourselves as a millionaire mainly
because i don't want our financial success to be tied with the people's perception of who we are
let alone i don't want our wealth determining the worth of who we are as human beings just
because we've had you know some success doesn't make us quote unquote superior to anyone else
we're better than you and we know it but having to achieve some success in our life we did learn
quite a few things that helped us get there now after many discussions with other successful
individuals here are things that we generally agree on about the 10 things that millionaires
don't find so number one on our list is lottery tickets now i'm not knocking on anyone who buys
lottery tickets we got one ticket we're supposed to get two so we would have to what is that 2.6
billion is that how it works but this is something that we stay away from like the coronavirus now
not only is it bad for as far as a financial decision but it goes deeper into our mindset
you see millionaires believe that the true way of building financial success and wealth is by
actually creating value through the work we do now one of the key lessons i learned about making more
money is that you have to create value by solving a real world problem for example steve jobs was
the most notorious successful entrepreneur solved the real world problem that we didn't realize was
a problem until we created the iphone now before the iphone most cell phones were extremely
complicated to use and very clunky i mean just take a look at the classic blackberry phone lots
of buttons and steve jobs ultimately came along and created the iphone which only has one button
wow he simplified the usage of a cell phone but at the same time created a device that
could play music take great photos browse the internet and send messages he solved a problem
by creating the iphone today apple is going to reinvent the phone and here it is
so millionaires don't leave their money-making activities to chance but rather focus on creating
value by building products and services that solve other people's problems
so instead of throwing extra money like 20 40 even 100 bucks into a lottery ticket
why not invest it and i'm not just talking about the traditional investments like stocks bonds or
mutual funds but also investing in knowledge starting your own business or improving your
health moving along to number two i'm gonna have daniel take number two on the things
that millionaires don't buy well thanks sam let's go and get right into number two which is
gambling now guys out of a lot of self-made millionaires that i have had the personal honor
and pleasure of meeting a lot of them like to put money in things that they can control
or something that they know is going to grow and well gambling is not one of them right chances
are you're probably not going to have a reliable return at the blackjack table or at the roulette
table or at the texas holding table i wish that i weren't a bad loser so gambling guys typically
among self-made millionaires if they're going to do it they typically spend a little bit of amounts
or something they could really really afford to lose all right number three on our list is that
millionaires stay away from fast and junk food good morning now wow this is convenient to get
you know order fast food this is something that i personally stay away from and don't typically buy
now i have to admit i do get these weird cravings once in a while for big macs all right there we
go plug for mcdonald's but in all seriousnesses guys millionaires understand that their health is
the most important asset now this covet 19 was a great lesson and a great reminder that our health
is something that we often take advantage of and we need to do a better job taking care of
ourselves now i'm not a nutritional or medical expert or a professional but i do know that
avoiding fast food and adopting healthier diet can help me reach peak performance in my business now
one of the obvious things that i've learned about food is that it's the ultimate provider of energy
if i eat crappy food right junk food then i'm probably gonna get crappy energy with a constant
state of exhaustion tiredness and drowsiness which leads to lower creativity and lower work drive
okay it's nap time for you james here you go what did you have for lunch i ate burgers therefore i
generally tend to avoid processed sugar and carbs adopting more healthy fat and protein for my
long-term energy and consistent energy the same idea goes for regular exercise and good quality
sleep which both impacts not only my oxygen levels my brain i know it sounds hokey and weird but
it impacts my overall energy for my work so for me it's very important that i have good diet
good sleep and good exercise because i definitely don't want to feel tired
or exhausted all the time which again leads me to basically sitting out on the bench
when i'm working on my business all right back to me guys number four is the get rich
quick opportunities bro this is business 1a man are you not seeing it here it is not a pyramid
scheme look at that you literally just drew up here multi-level marketing dude mlm read a book
now guys in this category i'm going to include uh scams such as your local friendly neighborhood
nigerian prints uh also multi-level marketing opportunities and network marketing opportunities
it's like this portal right so you sign up and then you start buying products you already buy
at the store through your portal then you get your friends to sign up and they buy
stuff through the portal right and then once they buy stuff through the portal the points go to you
you make money it's not guys i'm not saying that network marketing or mlm is bad that's not what
i'm saying at all if anything i think it's great right i actually first started in multi-level
marketing when i was 17 years old it's a great way to learn uh sales skills and personal development
and learning how to network and just you know kind of helping you hone these skills that are very
important in the world of entrepreneurship and business but let's look at the real numbers here
right the reality of the situation is chances are you will not make a million dollars a year unless
you're at the very top right unless you have a really large team you know and and you have a lot
of people working for you it's not really going to end up working out for you right and typically
a lot of these opportunities require some type of an investment up front and not only that if
you want to succeed you have to submerge yourself you have to spend you know 10 12 14 hours a day
working at that opportunity for you to really make it work but it is possible i have seen people
succeed it's just that based on a lot of self-made millionaires that i've seen and met in my life
probably point zero one percent have made their money through multi-level marketing or some type
of network marketing so that's number four guys all right so this is a bit controversial when
it comes to things that we don't buy but real millionaires don't buy brand name clothes or
at least with their own money that is the last time i personally bought any clothes was
well i i actually don't remember so yeah you can tell i'm not a big shopper when it comes
to clothes but yes i do care about how i present myself and what i dress for a certain occasion but
i don't like spending my mental energy and money on buying clothes especially brand names
something good too instead i want to invest my mental energy and my money in things that will
ultimately grow my business over time so one of the things that i do get away with buying
clothes is actually through my business because we have a youtube channel as well as making frequent
public appearances my brother and i are allowed to buy certain clothes through our business which we
can ultimately write it off for tax purposes so we can buy things like suit or jackets or shirts
that we typically wear for our youtube videos and turn that into a tax write-off another way
that millionaires often get quote unquote free brand name clothes is through sponsorships now i
have many friends who are also successful in their business particularly instagram and they get away
with receiving free brand name clothes as part of a sponsorship deal so next time you see someone on
instagram wearing a fancy brand name well there's a pretty good chance that they actually never
bought it i know it's a gasp what and bringing steve jobs back again he was often known to wear
the same things over and over again this also has to do with the fact that steve didn't necessarily
want to spend time his energy on deciding what what he wants to wear but instead he made a single
decision up front to wear the same thing over and over again so that he can invest his mental energy
in building his company at the time now speaking of making decisions up front by the way you should
definitely make a decision up front now to go ahead and smash the like button on this video to
help us out with our youtube algorithm we really really appreciate it all right guys for number six
i'm going to put in alcohol going out what's going on now guys i'm not saying that buying alcohol
is are things that millionaires don't do right obviously there's a lot of self-made millionaires
successful business owners entrepreneurs that drink alcohol now guys personally i do not drink
alcohol it's a personal preference of mine but i'm not saying that millionaires don't buy alcohol
however though i have noticed that on the journey to becoming a self-made millionaire
a lot of successful entrepreneurs and business owners that i've met don't spend a lot of time
their friday night or saturday night going out to drink going out to bars you know i remember one
time i was 19 years old you know i was still a kid wet behind the ears and many say i still am now
but you know i had a mentor told me and we were having a conversation about this concept of you
know spending time at the office work-life balance and you know going out because well it was kind
of around the age where a lot of my friends who are now in college were going out to bars every
weekend and they were going out to clubs and i would see it on my instagram and my snapchat right
and i'll see them just having a really good time and i think my mentor saw me looking at my phone
seeing all my friends go out on friday night saturday while i was at the office
and my mentor looked me in the eye and said you know what daniel uh all these people going out
to the bars you know buying alcohol all these people going to the club and sell
having a good time and partying i don't know why they do that when they have nothing to celebrate
and i was like wow like that hit me like bricks and guys in all honestly between the ages of 18
and probably about 24 i went out remember i remember going out to on a friday or saturday
night one time right one time and i was with my friends and i was going to see a comedian
that i really wanted to see for a long time but other than that guys i spent predominantly friday
and saturday night staying in not buying alcohol not going in the club spending hundreds so i'll
kind of finish this point with a quote by arnold schwarzenegger i was watching a documentary on him
and he says something along the lines of you know when you're out there partying
horsing around having a good time don't forget that somebody out there who wants to do the same
things that you want to do and accomplish the same things that you want to accomplish they're
right now working getting smarter stronger faster they're networking while you're out here at the
bar having a good time not saying those are bad things but just remember that person's out there
now this is something that drives me crazy every year because i'm a huge tech nerd but millionaires
don't buy the newest phones that come out every single year and this is this is gradually
exhausting because every year there's a new iphone or new samsung galaxy phone but even if i do end
up buying a new phone i never use my own money to buy it but instead i let my business buy the new
phone and write it off as a business expense since i do a lot of my business on my phone but that
leads me to another thought millionaires rarely buy anything that doesn't serve a specific purpose
every purchase i personally made this year was very intentional as to what purpose is served
so for me when i buy anything i look at the purchase through these three specific lenses
a will this purchase make me more money so buying a phone certainly makes me more money because you
know i make my very important decisions on my phone calls and in communications with
my employees but honestly that's it i don't spend much time messing around on this phone
second thing will this purchase be a tax write-off and if it isn't how can i make it a tax write-off
so that i spend less time or less money on taxes so for example whenever i make a trip
to out to any particular city for a personal reason i try to turn it into a business trip
by setting up meetings with clients or hosting a seminar so that i can turn my entire trip expense
into a tax write-off number three does it save time or does it save money i also look at economic
factors when buying anything that will ultimately save me time and money in the future but i also
look at it from a perspective of whether it's gonna help me with my health and be able to
help my family and benefit my family over time okay number eight we're gonna go representation
expenses now what are these things right because i know sam covered brand names but this is beyond
that right these are things that people will spend money on to make them look wealthy tesla t e s t l
a w as opposed to actually working on the strategies and business plans that will make them
wealthy you know we've all seen the videos on our social media where we all have that one friend
who you know they take a bunch of cash out and you know they they filmed themselves with all
the cash like hey if you want to get like me hit me up you know i remember i won't say who but i
had a friend who had a line of credit not even cash right not even assets or anything like that
literally a line of credit he took out cash from his line of credit recorded a video put
it on facebook saying hey guys if you want to be you know if you want to get like this you know
reach out to me private message me you guys smell that ah that's the smell of being rich
in all sincerity that wasn't his money it was literally a line of credit anybody could have
done that anybody could go to the bank get a personal line of credit based on their dti and
record themselves doing that and for me it's just ridiculous i remember about three years ago right
i was 22 23 years old so it was about three four years ago i remember i used to belong to this
community that would meet every single night on thursday and there was this woman there i don't
name her name right but she made that year in year 2016 or 17. i honestly don't remember she made 50
000 that year yet she drove a bmw uh because she was more interested obviously in looking wealthy
as opposed to actually being wealthy and actually putting in the work and actually producing
bmw bmw bmw whereas me that year i believe i think i made a little over 300 000 at age 22 and 23 and
i was driving the car that i strolled still drive today which is 2011 toyota corolla so guys moral
of the story right number eight millionaires do not buy or spend money on things that make
them look wealthy uh remember true winners actually focus their time energy and money
on building investing and also creating a battle plan as opposed to looking like they've made it
all right guys so this is gonna make your ears bleed but millionaires don't spend their time
and money on tv subscriptions okay there i said it all right okay so that's not there's no netflix no
amazon prime tv no cable subscription no hulu and so on now now the only exception is that if these
tv subscriptions are absolutely necessary for the business now we do know some individuals very
successful individuals who have to have all of the new subscriptions because they have to constantly
pay attention to what's happening on the latest news meet kevin but if it serves no purpose
other than being a tool for my business i don't spend my money there let alone i don't want to
be camping on my couch watching netflix for hours when i can instead spend my time reading learning
a new scale or maybe participating in a course so that i can improve my business now when i do
spend my time on youtube i'm normally watching ted talks ceo interviews and other financial youtube
channels and honestly that's really about it now you're probably going to say that i have a pretty
boring life sure i guess you could say that but you can't disagree with the fact that by delaying
these small short term gratification i can enjoy larger and more fruitful rewards later in life
i mean even today i'm incredibly blessed to enjoy more time freedom and choices than most of my
peers because of the sacrifice that i've made five to seven years ago but friends it's never too late
to start making healthier and more profitable choices alright guys last but not least number
10 my personal favorite in terms of things that millionaires do not buy or spend money on which
is over priced real estate lair yes if you have a location like on a cliff like a castle-esque type
thing or we're looking somewhere oh look at some water splashing on rocks and stuff then we will
take that now guys overpriced is relative right so let me give you an example a lot of you guys would
think maybe including myself that a 300 000 home is a nice home right that's upper middle class
it's a really good home you know probably three four bedrooms right turn key new build right it's
a phenomenal home however that's the amount of money that warren buffett spent in 1958 right
equivalent at that time he spent 31 500 bucks which in today's money right in today's market
adjusted for inflation you're looking at about 283 000 which you know you rounded up that's 300 000
well obviously 300 000 to me or anyone else that's a really nice home but for warren buffett
right obviously that's not you know the best thing that he could buy right he could afford to buy a
lot nicer things compared to a 300 000 home but guys one of the things that i noticed that amongst
millionaires amongst people who are financially smart and who are self-made the only time that
they buy real estate and they buy it well and they put a lot of thought into it they actually spend a
lot of capital on it is when it's income producing real estate so like rental properties like
commercial real estate storage units apartment complexes single-family portfolio so guys a lot of
self-made the true winners that i know in my life you know they're not out there you know spending
and over leveraging themselves to buy mansions and you know buy a six six-bedroom house right
myself personally guys myself and my wife you know it's just the two of us we don't have any kids
you know i i live in a three-bedroom apartment right it's got cool amenities right it's great
it's got a tennis court i love it it helps me save money on gym memberships but for me that's
all we need and i don't need anything beyond that right i much rather spend money you know into a
nice office spend more on studio equipment so you can you know make better videos for you guys here
on youtube so guys uh number 10 overpriced real estate that's what millionaires do not spend money
on which leads me to say guys get your free copy of zero to 75 units in one year it's 290 pages
of things that i spend an entire year on so that you guys can do exactly what i did
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zero to 75 units in one year the link is in the description so guys thank you so much for watching
this video it was really cool to have my brother on this video with me as well i had fun hope you
guys have fun don't forget to subscribe to our youtube channel and guys please like this video
and share as well but until then guys happy holidays i'll see you guys in the next one