- How millionaires invest
and manage their money differently.
This is the first time I am doing a workshop
or a meeting on how to invest and manage your money.
I've been doing this for almost two years now
and I've been always talking about how to make money.
How to close sales, how to do lead generation,
how to do positioning, how to do marketing.
All these things and this is the first time that I do it
because a few months ago I did a survey to our members
and I gave them a list of topics that they want to learn
and they say, "you know what, one of the topics
that we want to learn Dan, it's how to manage our money"
and that's interesting because this is something
I love to talk about but I wasn't sure
if the group is ready for it.
(dramatic music)
- Now, just before the workshop that I got a few e-mails
from our members.
They're saying "you know what Dan?
I'm struggling with money or I'm still learning
how to make money or I don't have any money to manage,
so, you know, this workshop ain't for me."
And there lies the first fucking problem.
It's like this, it's absolutely moronic.
It's like saying I'll exercise when I'm fit.
You don't wait till you're fit and then you exercise.
You exercise to get fit.
So, if you don't have any money right now
you don't wait till I'll make more money,
then I'll learn to manage it.
The very fact you don't have a lot to manage right now
shows you don't know how to fucking manage it.
It's very simple.
So, it's not that you wait till you have money,
then you do it.
It's that along the way, as you make money,
you have to learn how to manage it.
If you making 5,000 a month and you can't manage
5,000, what makes you think you can manage 50,000 a month?
What makes you think you can manage half a million a month?
You can't even manage the fucking five grand that you have
and that's how it works.
Money is attracted to people who knows how to multiply.
Write it down.
Money is attracted to people who know how to multiply.
That's why the rich get richer.
Has nothing to do with opportunity.
It's for them, it's not for others.
It's not about that.
It's because they have the skillset to multiply
and money's attracted to that
and that's why they grow their wealth in a very rapid pace.
So let me share something with you off my own,
kind of, financial journey, okay?
Now I've not always been financially successful.
I once struggled, just like most people from month to month.
Living, kind of, pay check to paycheck
and trying to make ends meat.
The lowest point of my life I remember back then
when I had no money and at the time I was living with my mom
in Surrey in a one bedroom apartment that we rent
and my mom and I would go to the...
There's a bakery near my house about ten minute drive
and once a week, we'll go there around six PM.
Now, the bakery closes at seven PM.
You know why I go at six PM?
(audience murmuring)
Yep, because you can get a load of bread
for just a few dollars and my mom and I
would buy that load of bread and we ate that for breakfast,
we ate that for lunch for the entire week
and my mom and I would go to the store, SuperStore,
the grocery store and we would go to,
not the vegetable fruit section, we would go
to the corner where they have the almost expire food.
How many know what I'm talking about?
Yep, we buy groceries like that.
So I know what it's like not to have money.
I know that.
We had, I had multiple credit cards all maxed out.
Trying to max out this one and do cash withdrawal,
trying to make minimum payment on that one and then that one
is maxed out and try to get another card
and that one is maxed out.
I know that.
Through my business failure, at one point I was
150,000 dollars in debt.
So, when I first started making more money
as I turned my life around, I often lived beyond my means
and on many occasions, just spent, just spent money
and struggled to pay bills on time.
Now, although, on the surface based on my lifestyle,
driving a nice car and I was spending money
and I was going on vacations and buying my friends dinner
and all that stuff, to be doing quite well
but the reality is I was spending so much time
worrying about money and my financial situation.
Now, why, and when I first started making money,
why did I feel the need to spend it
because, when I had no money, I had no self esteem.
I had no friends, so as I make more money I thought
if I'm buying my friends dinner, by treating them well,
by taking them on vacations, that, gets what, I get what?
What?
Friends, attention, makes me feel good.
Yeah, maybe a little bit even love, right?
Just get some attention for me.
I thought that's what you do to friends.
Now, let me ask you a question.
If my friends are friends with me because I buy them stuff,
are they true friends?
No, they're not true friends because true friends
are with you no matter what.
Doesn't matter how much money you have.
I learned that lesson because when I stopped
buying them stuff, they stopped showing up, right?
So maybe there's something wrong with my personality.
So, in my twenties, I had focused most of my energy
and time knowing how to make more money.
Now, here's the key.
I had to believe that, which I now know to be false,
that I could just make more money.
Everything would work out.
Now, put up your hand, how many of you
are very good with sales and marketing
and making money, it's relatively easy for you?
Just put up your hand.
You're good at making it, okay?
Same thing with me.
I thought, oh, easy, I can make another sale,
I can do more marketing, generate more leads,
close another sale.
I can make money.
Nah, no problem, I can always make more.
I can always make more.
And I came to realize that that just wasn't true.
It just wasn't true and my incoming income
continued to go up but my situation never really changed.
At first when I was, started kind of have a little bit
of a break and I was making 2,500 dollars a month
as a copywriter and I pray to the universe,
and say, you know, please, please,
just let me double my income.
Let me get up to 5,000.
I will never, ever, I will never ask for anything else.
Just get me up to 5,000.
I'm happy, my mom, I'm picking up my mom.
I'm good.
I can no longer have to buy, you know,
those expired groceries.
I can buy some real groceries
and I get to 5,000, what happens?
You want more.
Then I'm praying again, please, please, like, universe,
just let me, just double that one more time.
10,000 a month, yes, 10,000,
I will never ask for anything again.
I hit the 10,000 and you found ways to spend money.
Better car, better stuff and then you get 10,000,
of course, same room I pray again cause it kind of worked.
Somehow, please, whatever I was doing it's kind of working.
Since I was spending so much, please just let me double that
one more, just, I'm not greedy, just one more time.
I will not swear anything again ever.
Let me double down.
20K, that's all I need.
You get to 20K, you find ways to spend it.
Same room.
Hi.
(laughs)
Yes, it's me again.
It's me again and that did not work.
That did not work, so, the only difference was
when I was younger and earning less,
the behavior was the same, but when I was earning less,
now I have a lot more debt and a lot more stuff.
A lot more toys, a lot more stuff that I could spend
but kind of the same.
If you look at my financial statement, it's the same.
Doesn't matter I was making, you know,
2,500 dollar a month and now 25,000 a month,
my cash flow pattern.
What is it?
- [Audience] Cash flow pattern.
- It's the same, it's a poor person's cash flow pattern.
It doesn't matter how much I make,
I just spend it.
How many of you can find ways to spend money?
Quite easily, yes?
You notice, when you have, when you were
just getting started in your career, what you want
and what you need, it's like, well,
this is how much I want...
Actually, how many of you have done that,
like hey, you know what, this is all I need.
Just let me double that, it will be nothing.
How many of you have done that before?
Is it the same room?
Same prayer?
Right?
So, I was getting a new car.
Now, this was, back then I had my Mazda sport car
and you can see my oversized suit,
my fucking glasses, my spiky hair.
Back then I was younger.
So I was getting, I was getting a new car every year, right,
and I got the Audi R*, that was nice and all that stuff.
I mean, would go out to dinner with my friends
and we would drop, like, 3K, three grand a night
and I don't even fucking drink.
I do not drink and we drop three grand.
How, I have no clue.
I don't even know what they eat and what they drink.
I have no clue.
So, we're spending this money stupid.
It was very, very stupid.
So, why spending money feels good
and this is the psychology of it.
I think because, it's just my logic.
Kind of what I came up with.
I believe when you are poor, you're surrounded by things
that you think you would like to own.
Oh, the nice car, the nice house, the vacation
or those things that I want to buy
but cannot afford to buy but after a while
you associate the feeling of unsatisfied desire
with poverty.
So, when desiring begins to feel poor,
having things seems like they will make you feel rich.
I'll say again.
When desiring begins to feel poor, having seems like,
like it will make you feel rich.
So, I was feeling unsatisfied and I thought
buying the next car, buying the next thing
would make me happy.
Now, how many you have had this experience?
Maybe, even guys, like, you have this dream car
or whatever you want to buy.
Whatever thing, it doesn't have to be car,
but it's a big purchase, okay?
That you really want to get and you work your ass off
and you get it and the happiness lasts
for, about what, how long?
Hm?
Couple months, maybe a few days, maybe a few months.
In some cases maybe a few hours, who knows,
whatever the thing is.
Then, guess what, then we look for the next thing, right?
I've done that, I've done that.
Nothing wrong with that and I tell all my young mentees,
even I tell them "don't go buy the sport car,"
they'll still fucking do it.
I know that cause they need to get that out of their system.
They need to, you know, yeah, I said don't.
Don't buy the Maserati.
It's, really, it's not necessary.
Yeah, yeah Dan, I know, I agree with you
but let me buy it, let me learn it myself, right?
Then I'll drive something, something else.
They all have to go through that.
Nothing wrong with that.
I've gone through that.
I learned it very, very quickly.
I still like nice things, don't get me wrong
and I'll share with you how you can have the nice things
and still have the freedom that you want.
So, realize that just making more money was not the answer.
Making more money was not what?
Was not the answer.
So I had to learn how to properly manage my money.
Whatever money that comes in.
And I had to learn how to acquire and create assets
that would create wealth.
There's a very big difference between making money
and creating wealth.
Some of you are very good at making money.
Also good at creating wealth.
They're two very, very different things.
Just because you know how to make money
doesn't mean you know how to create wealth.
They're two very, very different things.
From that point on, I made it my mission
to locate and study all the information
I could find on the subject of money.
Making it, keeping it, growing it, multiplying it.
How do you do that?
And through the effort, trial and error,
a lot of blood, sweat and tears, I now have developed
a set of principles and guidelines
which is what I'm gunna share with you today, okay?
Does that sound good?
- [Audience] Yes!
- Yeah, which is what I'm gunna share with you today.
(music)