If I Wanted to Become a Millionaire In 2024, This is What I'd Do [FULL BLUEPRINT] – Transcript

00:01ah this is the blueprint to becoming a millionaire and I'm going to walk you through the levels to becoming one level one is the fundamentals of wealth creation and we're going to start with what even is a millionaire it's someone who's net worth excluding their primary residence is an excess of a million do assets minus liabilities for example let's say you own a $1 million house and you owe $500,000 on it if you had nothing else saved up in your bank account which

00:30would hope that you did but let's just say you had nothing else saved up in your bank account then your net worth would be 500k in this instance you would not be a Millionaire right now let's call this a $1 million house and then you owed nothing on it your net worth would be a million dollar now there's a difference between having a liquid net worth versus a net worth a liquid net worth is assets that you can trade in and out of so if I had million dollars in cash in my bank account versus owning assets that were worth a million dollars those are different things and you might

00:57be wondering how does Alex have any Authority to speak on the subject I'll tell you why I became a millionaire in my early 20s I had my first cash million in my bank account when I was 27 and I cross $100 million in that worth by age 31 so I became a millionaire a 100 times in a row so I can tell you how to do it at least once and I've helped over a hundred other people create Million Dollar Plus net worths uh over my career and those are just the ones that I know about let alone all the people in our community have done a lot better than that and so we go to step two in this little journey of ours which is equity

01:26because there's two ways that you can become a millionaire you can earn your way there or you can own your way there and the faster way is to own your way there and that's what I'm going to walk you through so I'm going to walk you through both examples of earning your way there which is how I first thought it was versus owning so if I want to earn my way to a million then I'm going to need to make $2 million over X period of

01:50time and then divide that by two because of taxes to get to my $1 million let's say making $200,000 a year and I make $200,000 a year for a decade that's assuming that you saved 100% of your income you'd be able to earn your way to $1 million in liquid net worth on the other hand you can own your way meaning that you own assets either you know which could be businesses or real estate which are probably the two most common assets that people own that are trying to invest when I say invest when you are

02:18an entrepreneur you are investing you're just heavily indexed on one stock which is your own let's say that I create a business uh that gets to $250,000 per year in some instances I might be able to sell this company if it was truly automated and had a a team of people that worked without me needing it I could sell this at probably a four times multiple and this is again that would be a very good multiple for a business that is doing that kind of profit because this is actually a small amount of profit for when we're talking business

02:44sales but that would get us to a $1 million net worth all right because we own 100% of this business that makes $250,000 a year in profit without us working at all and we could sell that for $1 million and so you can see the difference here it's like okay well one of these takes 10 years this one is just how long does it take me to automate the creation of $250,000 a year and so what's interesting here is that almost the actual income between the two is almost identical but as soon as you achieve it you almost already have the

03:12the net worth because here time is working against you because you have taxes and you have your living expenses that are cutting out of this every single year whereas here you get the multiplier without your living expenses with time being an ally for you which takes us to the next step on our journey don't diversify diversification is for weenies diversification to quote Uncle Warren is a hedge against ignorance you

03:41only diversify if you don't know what you're doing the more you know the less risky it is I actually am approaching diversification from a focus perspective which is what's the one thing that you're going to invest your most valuable resource because when you're early on you don't have that much money so your most valuable resource isn't your money it's your time and your attention there's two ways we can allocate it V1 we do little allocations like this I'm going to look at crypto I'm going to look at day trading I'm going to look at forx I'm going to look at flipping

04:08houses I'm going to look at long-term investing in real estates I'm going to look into Airbnb I'm going to look into starting an ATM business I'm going to look at you get the idea right so let's say this is you and this is your time and attention that you have to pursue any new opportunity so you say I need seven income streams because the average millionaire has seven income streams so I'm going to spread myself thin between seven different opportunities and while I do that I'm going to be multitasking trying to fill different cups at the same time with different colors and I'm somehow going to wait until one of these

04:36things takes off right I have to see which one of these will work but the reality is it's not which of these ones will work any of them could work if you put the work in but you have to reach a threshold once you get to the top the extra cash starts spilling over and you actually have a profitable opportunity which one of these cups is closer to spilling over you going in on one thing or you spreading yourself between seven and the reason that this myth continues to proliferate is because it's absolutely true that people who are the wealthiest have multiple income streams

05:03but what's not true is about how they got there the wealthiest people in the world go all in on one income stream and they keep adding it up over and over and over again until it overflows and then once it overflows because they're making so much money from their one opportunity they then start diversifying back between the other different ways but they made their wealth focusing on one thing and then they maintain their wealth by Distributing it you don't make

05:31money by by splitting your attention up you make it by focusing on the one thing that matters most B2 you say what do I really like well I do have experience doing this one thing and so I'm going to ignore all of these other opportunities and just go all in on one thing the reason I'm such a big advocate of focusing your attention on one thing is that this is where you get disproportionate returns because I think it's very arrogant to think that your 10% of your attention where you're not even that good at business to begin with spread between 10 things is somehow going to compete against somebody who's

05:59putting all of their effort on one thing but here's the fallacy that most people who are starting out don't get they think I'm going to try all of them and see which one works out or rather I'm going to try to start multiple things and see which one takes off but the reality is that all of them could take off or none of them could take off but it's solely based on which one you work on so it's not which one will work it's which one will you work on you want to go as fast as possible through the I have no idea what I'm doing phas so you

06:25can get to the I do know what I'm doing faas and I understand the risks that are associated with this and that's why I don't want to diversify because I actually get outsize returns here there's five stages that you go through as an entrepreneur when you're considering a new opportunity phase one is called uninformed optimism this is where you are uninformed but you're like man this opportunity sounds so great look at all these people making all this money and so then you dive in

06:52and then you get to something called informed pessimism you're like oh wow this isn't as easy as I thought there's all these other things that they didn't talk about in this ad or in this highlight reel that they show me on this YouTube short about this person that made $1,000 a day going from nothing from her home right so then what happens next is you keep working on it and then you get into the valley of Despair sad face sad face this is where

07:18most people quit and this is what most people do now dot dot dot dot dot dot dot dot dot they find another one of these things to get into and they go all the way over back here because the think oh no this one has doooo on this side of the fence so I'm going to go to the other side of the fence where the grass is green but what they don't realize is when they get into that side it's completely made of manure and that's why the grass is so green right there's poo on both sides you just didn't know about it until you got there all right and so

07:45what happens is people keep repeating the cycle over and over and over again and they never make progress and so here's the thing is that when you do find something that you're like you know what I kind of like this okay this is harder than I originally thought I need to keep learning wow this is actually really hard there's a lot more pieces to this than I understood at the beginning I guess this is why everyone isn't rich and then something magic happens you

08:10then start to have informed optimism you now start to realize you've wrapped your arms around whatever the opportunity is or whatever thing you're pursuing and you're like okay I haven't gotten there yet but I understand the math I understand the process of getting where I am to where I'm trying to go and ultimately this is what I'm trying to do with this blueprint for you is it if I can help you tackle as much of this or at least compress the time that it takes you get here that's a big victory for me and then you finally get to the Final Phase which is achievement which is you

08:37actually accomplish externally what you set out to and most newbies fall out between here and here and then start this process over again so most people only relive this over and over and over again without ever making it to here which then naturally leads you to here because then you have no desire to diversify because you now get it and what do you do when your hair you reset the you reset the Target and you say

09:04this is where I want to go next and because you've been through this process once you understand that you know what me going after this 10 times bigger girl sounds amazing I'm going to find out there's some stuff that sucks there's going to be a period where it's going to really suck and it's going to feel hopeless cuz I don't see how how to get through it I'm going to keep chugging and then understand how to get there and then I'm going to get there I'm going to repeat the process so now we go to the last part of level one of becoming a millionaire the long

09:32game if I told you to build the tallest tower you possibly could in 10 seconds here's what you might do boom 5 4 3 2 one time right now imagine I told you to build the tallest building you possibly could in 10 days you would probably say you know what I can probably get some more boxes how flimsy is is this right like how stable is this

10:00do you think this is going to last a long time probably not so I might build it piece by piece from the ground up with more stable bricks from day one and I would keep doing it this way right and I'd keep adding and keep adding and keep adding and then when 10 days came I might be five stories high and so the reason this is such an important frame shift for people is that the fact that they're in a rush causes them to build

10:27the thing they want to build differently the fastest way to get to this tall is to build it the exact way I did earlier stack it end to end up to this point but if I then said I need you to build something that's 10 stories tall you would never get there and what happens is people get stuck right they get stuck at this level and they can't add another one on top and they stay here and they're like why can't I get my million doll business to $10 million and it's because you

10:53built it wrong to begin with and so as much as this sounds painful sometimes the fastest way to to get to 10 million is to start back at zero and build it right to begin with I talk so much about long game about making sure that you're building it the right way because this thing is never going to last and so the hardest thing about building something right is that in the beginning you need to have something to sell need your amazing valuable thing and then that's a megaphone it's terrible but then you

11:21need to advertise it to let people know about stuff and then you start making sales but the problem is that people get to this point and then think oh I need to do more marketing and sales right because that's what made me money but the problem is the more you market and sale the more people actually find out that this is not a gift and this is actually a big pile of and so what happens is now you've got people who buy this thing and tell their friends this thing stinks and

11:49then over time it becomes more and more expensive for you to advertise because your reputation stinks and so the right way to build it is to understand that you you have to build the thing first and then you got to let people know about it but then you don't crank on this you keep fixing this thing until this guy becomes a happy camper and tells his friends and until that happens you keep making this thing better and this is the same thing as if

12:17I did this and just kept gassing it that's me vertically building the tower and then reaching a Max that I can't go past anymore versus building it so that I get people to say wow this thing's amazing and so then they also tell people for me so that when I get to that point I actually built it with a huge base of foundation and I can keep stacking on top of it and that's the difference in terms of mindset and perspective of how you actually build something that's going to last and then along the way with your team and the people that you hire rather than saying hey I just need a body in the seat I

12:45just need a person to do this thing you're like who here has talent and I might interview 20 people for one role rather than three so I get the right person if you feel stuck all the time and you can't make progress you usually need to go back to the beginning and realize that you built a vertical business that had no Foundation to begin with and now we have our foundation built for level one of wealth creation level two is all about the actual tactics of getting to making your first million and it starts with finding a

13:13hungry crowd let me explain what I mean by find a hungry crowd this guy started a business selling hot dogs and he was given One Wish from a genie of what competitive Advantage he would be able to have the first thought he had was like maybe I'll make my hot dogs cheaper the genie shook his head and was like no he's like hm what if I made my hot dogss taste better and then Genie said no don't waste your wish on that maybe I'll just make mine the fastest cooking so I can serve the hot dogs faster the genie said that's not what you want to waste your wish on the genie looked at him