Jay Shetty PodcastMONEY EXPERTS: If I Had to Make 1 MILLION From $0 — Here's EXACTLY What I'd Do!
EVERY SPOKEN WORD
55 min read · 11,086 words- 0:00 – 1:16
Introduction
- JSJay Shetty
One of the most difficult, if not the most difficult conversation to have in the world is about money. Whether it's with your partner, whether it's with your boss, whether it's with your family, even yourself, we all struggle with thinking about money, talking about money, monitoring our money, growing our money. It's one of those things that can end up being one of the greatest struggles of our life. And it's sad because so much of our life revolves around it. I know that this episode will transform your relationship with money. How many of you are struggling to shift from surviving to thriving? Maybe some of you have tried budgeting, investing, or saving, but still feel like your financial growth is stuck. Do you feel like you're doing everything right with money, yet real financial freedom still feels out of reach? Maybe self-doubt is keeping you from reaching the financial success you know you're capable of. I can't wait for you to listen to this episode because I want you to transform your relationship with money and wealth. The number one health and wellness podcast.
- SPSpeaker
Jay Shetty.
- SPSpeaker
Jay Shetty.
- SPSpeaker
The one, the only Jay Shetty.
- JSJay Shetty
[laughs] First
- 1:16 – 8:08
Pursuit Of Wealth Vs Riches
- JSJay Shetty
up is Scott Galloway, entrepreneur, professor, and bestselling author. He talks about the pursuit of wealth versus riches. Have you ever felt the pressure that you need to own a home? Scott busts this myth, and I can't wait for you to hear his answer. What does being rich even look like? Scott talks about what does it mean to have a passive income that can exceed your expenses. Here's the truth: everyone worries about financial stability, even high-paid professionals. No matter your age, if you're someone wanting a life of true wealth, listen to this.
- SGScott Galloway
There is a certain pride of ownership. I think it's situational, where you are in life, how much money you have, the city you're in. But buying a home is meant to be an enhancement to your life. It's not a suicide pact, and it may not, may not be right for everybody.
- JSJay Shetty
Yeah. I think what it gave people as a symbol was something to pursue, right? We started talking about you go to college, you get a degree, you get a job, get married, you get a house-
- SGScott Galloway
Mm
- JSJay Shetty
... you have kids. Like, it became one of those tent pole-
- SGScott Galloway
That's right
- JSJay Shetty
... things. And so now when you take it out, it's almost like what should people be pursuing, right? If you got married, you got a good job, you're working, you're with your partner, it's almost like people think they have to pursue. It's almost like the assumption that you have to have kids. It's the same assumption of, "Oh, well, we have to buy a house."
- SGScott Galloway
Yeah. Yeah.
- JSJay Shetty
So what should people pursue instead financially when it comes to financial security?
- SGScott Galloway
The goal is, um, what I'll call wealth. The goal isn't to be rich. Rich is the things you see. Wealth is what you don't see, and your pursuit should be wealth or economic security. And this is what wealth is. Wealth is having passive income that's greater than your burn. Uh, two examples. I have a buddy who runs M&A for a bulge bracket investment bank, makes between three and $10 million a year, depending upon the market. Because it's all current income, he pays 50% taxes between his ex-wife, his home in the Hamptons, and his master of the universe lifestyle that he feels he deserves. He hasn't saved a lot of money, and he spends most of it, and I know that firsthand, he has a lot of sleepless nights wondering what happens if the music stops. He is not, he is not wealthy. My father, who is 94, between his pension from the Royal Navy, Social Security, and he owns six washing- washer and dryer machines in trailer parks where he goes and collects the money with his walker. He makes $52,000 a year. He spends 48. So he is saving money despite the fact that he's not working, so his passive income is greater than his burn. He is wealthy. So you wanna put yourself on a track to being wealthy. You wanna say, "Realistically, I can control how much I spend." I just c- I've been coaching this couple living in San Jose, and they're in their late 50s. I talk a lot about young people, and they say, "Scott, we're in our late 50s. What do we do?" "Well, how much money do you have? What's your house worth?" Da, da, da. And by the time they're 65, they're not going to have enough passive income to pay for their lifestyle. And I said, "Well, let's lean into our strengths here. Why are you in San Jose?" And they said, "Well, we've always lived here." I'm like, "Well, okay, your kids are gone, and you've just mentioned you go to Costa Rica twice a year. Why wouldn't you try and cut your burn 40, 40% and move to Costa Rica and take that economic pressure away and sell your house here? I think your kids would love to come visit you in Costa Rica." So the question is, put yourself on a path using basic math and what you really think you're gonna need in terms of passive income, such that at some point, ideally it's by the time you're 40, it's usually not. But it needs to be by the time you're 65 or 70 because that, that release of, of economic anxiety frees you up to focus on what is really important, and that is deep and meaningful relationships. So the reason why I am so much happier over the last 10 years than I was kind of the first 45 years of my life is that economic stress was always there for me. I was raised by a single immigrant mother who lived and died a secretary. I felt like there was a ghost following us around telling us we weren't worthy 'cause we didn't have money. Between college, student loans, the dot bomb crash, and the great financial recession, I just never had enough money to have passive income such that I was done. Most pe- and a lot of people never get there. I got lucky. I sold my last company about 10 years ago for a lot of money. Now, unless I really screw up again, which I've done a couple times, I can focus on my relationships. The, the resting blood pressure of a child in a, in a low-income home is higher than the resting diastolic blood pressure of a kid in a middle or upper-income home. I think the majority of divorces are not a function of infidelity or a lack of shared values. It'sThose things-- one or more of those things might happen, and then the, again, the incendiary on it is financial stress. Two-thirds plus of, of, uh, divorce filings are from women, and we don't like to say this because we like to assume all men are predators and all women are virtuous, but when a man is under financial stress, the reality is he becomes less less attractive as a mate, and that can lead to real stress in the relationship. So what you wanna pursue, if you're not pursuing a home, you wanna put yourself on a path. You wanna get alignment with a partner, you wanna track your spending, and put yourself on a path to some level of economic security, of wealth by, say, the time you're sixty-five. And if you're young and you're killing it, instead of buying a bigger flat screen or a bigger TV or maybe a bigger house, say, "Well, what if I started saving ten, fifteen, twenty, thirty percent of my salary and I got wealth by the time I'm forty or forty-five?" 'Cause to be in America, young and healthy, and have passive income that's greater than your burn, you're just gonna have a wonderful life. So it's not acquiring anything, it's getting to a point of economic security or wealth, and that's a function of two things: how much money you make such that you can save. Key to wealth is not how much you make, it's how much you save. And also the thing you can control is your burn. You know, I have a friend who ran a hedge fund, it closed down. He makes good money, but not great money. Living in Tribeca with three kids, needed a million bucks a year to live that life. Moved to Portugal, lives an amazing life with a beautiful home, great food, childcare, great education on four hundred grand a year. I mean, these are, these are problems of privilege, but that has taken the world of stress off his shoulders. He now needs to make a very good living, not an outrageous living. So but surround yourself with smart people who can help you make these decisions, but wealth is passive income that's greater than your burn.
- JSJay Shetty
When you bring up
- 8:08 – 12:04
Rewire Your Relationship With Money
- JSJay Shetty
the word money, most of us kind of go blank-faced.
- SGScott Galloway
Yeah.
- JSJay Shetty
We, we wanna reach for a stress ball. We kind of... You can just sense that it's uncomfortable to talk about it because we're almost reminded of all the bills stacking up and all of our expenses, and we spent too much on TikTok Shop this week, and, you know, the reality hits, and we kind of don't wanna talk about it, don't bring it up. How do we get out of that stressful wiring? And, and you talked about it even there with your background. Like, I grew up in a family where w-we didn't have the healthiest relationship with money because we never had enough-
- SGScott Galloway
Yeah
- JSJay Shetty
... or we always had just enough, and that was good enough.
- SGScott Galloway
Yeah, yeah.
- JSJay Shetty
And that was always like, you know, you're just looking at your bank balance sitting at zero all the time. Like, how do we rewire our relationship with money? Because most of us have a stressful relationship with money.
- SGScott Galloway
Well, when you think about how they, how they help people who are depressed, it's a combination of talk therapy and, if needed, some sort of, you know, pharmaceutical intervention. I think mental illness or mental unwellness around money, I think we absolutely need to, one, have more financial literacy. I think we should have a class called Adulting in your senior year of high school that says, "My kid can do derivatives, but I just figured out he doesn't understand the interest rate on his credit card." So young people needs a certain level of financial literacy. Also, I encourage them to talk about money with their friends. It's especially hard for men. Women are disproportionately evaluated based on their aesthetics. Men are disproportionately evaluated based on their, uh, economic vitality. So for a guy to say, "Hey, do you... You know, I lost a shit ton of money in the market. D-should I sell it? Do I get a tax write-off?" That connotes weakness. They're worried that they're less attractive. There's actually something very British that you might relate to, and that is British people, the best grade I understand in Britain that everyone wants is you get really high marks but really low effort scores.
- JSJay Shetty
[chuckles]
- SGScott Galloway
You're supposed to be accidentally rich. I, I'm so-- I'm such a baller, and I'm so great at what I do that I just accidentally slipped and fell on a ton of money. No, it's work. You gotta think about it. You gotta talk about it. So I encourage people to talk to their friends, and if you're comfortable, "This is how much money I'm making. This is how much I'm saving. This is, you know, taxation is really important. Well, what if I move to Florida? How much money would I save? You know, what-- If I buy a house now, I heard there's something called ten thirty-one exchange where I can roll into my next property tax free." Talk about money. Get, get really good at it. Roger Federer, do you think he never talks about tennis? Talks about it all the goddamn time. You-- Do you wanna be great at money? Most people say, "Yeah, I wanna be great at money." Is anybody great at anything? If I'm, uh, if I wanted to be an amazing evolutionary anthropologist, would I never talk about it? Would I never bring it up in conversation? Would I never wanna talk to other people about evolutionary anthropology? If you wanna be good at money, put down the facade and start talking to people about their investments, how much money they make, what they do with their money, how they save money, what they do to try and limit their spending. I talk about stoicism. See if you can find a practice where you get reward or a dopa hit from exercise or relationships. Gamify saving money. My junior year at UCLA, I was in a fraternity with mostly wealthy Jewish kids from the fa-- uh, from the valley, and there were five or six of us out of a hundred and twenty guys, and everybody knew who we were. We didn't have any money. We were always late on our house bills. Everyone knew those are the poor kids, right? And one summer, we all lived in the same apartment building, and we gamified saving money. W- And we had a whiteboard, and we literally made a game out of it. In the summer of 1985, I survived for twelve weeks on seventy-eight bucks a week, including rent. Because if I didn't save three thousand bucks by the fall, I wasn't going back for my senior year in college 'cause I didn't have wealthy parents. And
- 12:04 – 14:56
Be Honest About Your Finances & Save Money
- SGScott Galloway
if you can gamify saving money with a partner, especially a romantic partner that you can be totally transparent withGod, that's powerful.
- JSJay Shetty
Mm.
- SGScott Galloway
We're building something. We're gonna save a ton of money. Can we save five or seven thousand bucks this year together, and it's gonna be eight thousand next year, and then it's gonna be nine? And with compounding, in five or six years, which will go really fast, we have sixty, eighty, a hundred grand. And having kids is, I think, the most rewarding thing it has been for me. I was-- I didn't plan to have kids, but it was having kids with someone else and, and raising what feel like pretty good citizens. But a close second was building economic security with someone else. We had total alignment, right? We're gonna save. We were transparent around our expenses. We were generous with each other. "Oh, no, you should do that." There's a very unhealthy dynamic sometimes in relationships, and this is sexist, but I found it to be true, where the dude uses money to control his spouse, and the spouse turns it into a game of how much money she can spend without him knowing. And fortunately, that's getting flipped a little bit, or it's equalizing 'cause men-- women are doing so well. Women under the age of thirty are making more money in urban centers. More single women own homes. But there's still, in my generation, this very weird dynamic between the sexes and money. But going back to your original question, talk about it. Understand it. If you wanna be good at it, you gotta get literate at it, and you wanna bring it up with your friends, and you're gonna start learning. I spend four hours a week probably talking to other people about my economic well-being, what tax loopholes there are, where I should be investing. I have a lot of real estate. When interest rates come down, at what point do interest rates get low enough where I should be pulling a second out and putting it in the market, knowing if I c- have a ten-year mortgage, over ten years the market's usually up about seven to nine percent a year. Does that make sense, right? Think about it all the time. You're the average of your five friends. You've seen that study. Body mass, politics, sports teams. But what's more interesting is one of those five people will be more economically secure, much more economically secure than the other four, despite not making a lot more money. You wanna know those behaviors and those characteristics, and you wanna model that person. But this is something we all need to be more open about. It doesn't make you less of a man. You're not supposed to have a lot of money when you're young. Everybody screws up. I've been broke twice. In my forties I was broke, and that was really-- I was too ashamed to admit that to anybody else. It was like, well, you're supposed to be smart and great at what you do, right? So I think being a little bit more vulnerable, being open about it, and getting tips and, you know, kind of, kind of rules of the road from other people. Talk about it.
- 14:56 – 15:50
Transfer the Skills You Have Into Real World Value
- JSJay Shetty
Clip two is from Codie Sanchez, founder, CEO, New York Times bestselling author, and champion of financial freedom. She talks about how to translate your skills into wealth. You might have felt that you have skills, you have talents, you have abilities, but you don't know how to monetize them. Are you someone who's deciding whether college is right for you? Or maybe you went to college and got a degree in something you no longer want to pursue. Degrees don't always guarantee financial success. Practical, transferable skills can matter more. Companies increasingly value practical skills over traditional degrees, and Codie talks about how to turn those into real-world value so that you're not chasing your passions that may not pay off. I can't wait for you to listen to this clip to recognize how to turn your skills into profit. And so
- 15:50 – 18:28
How Bad Do You Want It?
- JSJay Shetty
I'd meet a lot of young people who sadly have spent so much money on their degree, are really smart academically-
- CSCodie Sanchez
Yeah
- JSJay Shetty
... but then that skill doesn't translate into knowing how to make their company more money, knowing how to lead people really well, knowing how to build functions, systems, processes. And therefore, it's like, well, wait a minute, I just studied all these years, but it doesn't translate.
- CSCodie Sanchez
Yeah, I think you're exactly right. I mean, for a long time, we employed people from the top universities and financial firms. We would go out, and we would hand select them because that would be an indicator of their grit, perseverance, and potentially their, their intellect, their IQ. Now, by and large, you're starting to see, uh, a lot of the top institutions bypass that. You know, Google doesn't mandate that you have a college degree if you're going into an engineering degree, actually, and I think that should be really liberating for us. It's basically breaking down this barrier that's a six-figure barrier that allowed for the few, the elites, to stairstep over everybody else. And now it's actually saying, "How bad do you want it? And don't tell me what you learned. Show me what you can do, or even better, show me what you did." And so I think the resume of the future is actually if somebody came to you, Jay, and they were like, "I just graduated from Wharton. I am very smart. You know, I also did my undergraduate degree at Harvard. Um, I now want to come work for you," you'd be like, "What do you know how to do? Do you know how to market? Do you know how to grow a, a beverage company? Um, do you know how to increase our, uh, investment return? Oh, you kind of, like, theoretically have looked about how to do that in a case study?" That's probably less interesting to you than somebody that goes, "You know what? I was part of the beverage team at Erewhon and Whole Foods, and I figured out, uh, sort of across the country how they buy different pieces of, uh, inventory."
- JSJay Shetty
Yeah, you got my attention already.
- CSCodie Sanchez
Right. Exactly. "And, and maybe because I want to help you grow this individual business, which I know you care about 'cause I see it on your socials, I put together this little spreadsheet for you. Here's the things they care about. Could I come work for you for free for three or six months, and if that works out, could we do something better-
- JSJay Shetty
Mm-hmm
- CSCodie Sanchez
... and bigger?" The, the problem that people usually have on the internet when I throw out the word work for free is young people are like, "Remember that part where you told us that we are broke and we don't have any money?" So I'm not trying to dismiss that at all, but I do think we have to be honest about the fact that when we're young, you're gonna have to work harder than you think, longer than you think, doing stuff you don't like with people you probably don't like until eventually you get the right to do something really interesting.
- JSJay Shetty
Mm.
- CSCodie Sanchez
But, like, you don't die in your first job from it being really hard and challenging. You die from the absolute monotony and the low-level tasks you have to do for basically pennies on the dollar.
- JSJay Shetty
Yeah, definitely. Definitely. Absolutely. I fully
- 18:28 – 21:52
Want To Quit Your Job But Don't Know What's Next?
- JSJay Shetty
agree. Let's say someone's thirty years old.
- CSCodie Sanchez
Yeah.
- JSJay Shetty
They've-- or thirty to thirty-five. They worked ten, fifteen years after graduating. They've been at the same company. Maybe they've moved once.
- CSCodie Sanchez
Yeah.
- JSJay Shetty
I was actually talking to someone like this yesterday. She's been at this one company for six years. It's a great company, great on her resume, but she's like, "I don't really wanna be here. I don't think this is where I see my future."
- CSCodie Sanchez
Mm.
- JSJay Shetty
"But I'm so scared of quitting. It- I don't know how to invest. I probably didn't save that much anyway."
- CSCodie Sanchez
Yeah.
- JSJay Shetty
"Now I feel bad about it."
- CSCodie Sanchez
Ooh.
- JSJay Shetty
"I'm probably feeling a bit of shame and guilt that I didn't save that much over the last 10 years."
- CSCodie Sanchez
Yeah.
- JSJay Shetty
What would I do, Codie?
- CSCodie Sanchez
Well, one, I would say these days you do not have to have money to make money, which is incredibly powerful. So when I think about it, if I'm 30, and I am at a company like that, what would I do today? Well, I would actually probably sit down and figure out, what am I actually skilled at that somebody else would pay me for? Once you know what somebody else would pay you for, which is really just, like, do people ask for your opinion on this? Could you actually get jobs in this space? If it was me, because I'm kind of unemployable, like, you don't want me to work for you. I, like, I got my own ideas. I wanna do things this way. If she's like that, then what you wanna do is you wanna try to partner with somebody where you can be the solution to their problem. And because you understand what I call deal-making, which is really the language of money, you can negotiate an ability for you to own part of a thing in order for you to have one of three outcomes. If she can figure out if she can help a business grow its revenue, make more money, if she can help a business cut its costs, or if she can help decrease the pain of a business owner, you can negotiate your way into a business and have equity in it and upside. And I wish somebody had taught me that earlier because this is what consultants do. This is what private equity firms do. This is what some of the largest institutions in the world do. I call it expertise to equity. But if I was her, I'd say, "Don't go find another job," and if you don't have a brilliant idea that you're like, "I would die for the want of creating this thing in the world." If you have that, please go do it. But if you're like, "I don't have that. I just want to make money, and I wanna feel respected, and I wanna feel like my skills fit somewhere, and I'm able to have an outsized income," if that's you, then I think you should try to value your skill set. Then you should try to negotiate for an upside deal with somebody, and you should try your hand at this game called ownership, which is where you say, "Hey, small business, I know how to market. Can I help you market at the side while I'm working on this company? And because I help you grow your revenue by 50%, could I keep 10% of the 50% I grow?" Do you think a small business owner would say yes to that? Of course they would.
- JSJay Shetty
Yeah.
- CSCodie Sanchez
Because there's no downside. And I think more often than not, we think that the only risk you can take in making money in business is putting your own cash down, that's a risk, or starting a business, AKA dedicating your life to something.
- JSJay Shetty
Mm.
- CSCodie Sanchez
And the last part I'll get a little statistic on us is 90% of startups fail inside any rolling 10-year period. We know that statistic. Most startups make $0 for the first three years. After that, the average entrepreneur makes about $46,000 a year, which is great, but not when you've been making zero for three years. And then on top of that, we've got this nation of, of people who have all these bills to pay, and they are betting on hopes and dreams as opposed to realities. And so my, my commentary is, can you figure out how to value your skills so you can negotiate a little bit more upside for that day where you can't work anymore?
- JSJay Shetty
Clip
- 21:52 – 22:29
The Mindset Of Financial Abundance
- JSJay Shetty
number three is from one of my best friends, Lewis Howes, and he talks about the mindset of abundance. He talks about how a scarcity mindset can limit financial growth, while an abundance mindset opens doors to wealth. If you've grown up with limited resources, it may have shaped how you view money. He talks about the importance of practicing gratitude with money, no matter how little or how much you have. And we get to talking about both of us rewiring our relationship with money so that you can actually attract more abundance.
- 22:29 – 26:38
Shame Surrounding Making Money
- JSJay Shetty
If me and you went back to a place in our life where we really didn't have money-
- LHLewis Howes
Yes
- JSJay Shetty
... and you think about someone who's in that position who's listening to us right now, and in their head, they're thinking, "But how do I become abundant-
- LHLewis Howes
Mm-hmm
- JSJay Shetty
... when I don't have?" Where, like, my natural thing is like, I'm just struggling to pay my next bill, and me and you have both been in those situations.
- LHLewis Howes
Yes.
- JSJay Shetty
I remember when I was growing up, I grew up in a house where we had just enough. Like, that was the language my parents used.
- LHLewis Howes
Yes.
- JSJay Shetty
We have just enough. And my parents would often argue about money. I remember I wasn't allowed to buy cool shoes and stuff. I'd have, like, the, the knockoff cheapest brand from whatever, which was... I actually didn't have an issue with that. I didn't have an issue with, with any of it because we had food, and that was my normality.
- LHLewis Howes
Mm-hmm.
- JSJay Shetty
But it's really interesting because the amount of times growing up, I started working when I was 14, and I think that gave me a really interesting sense of how hard it was-
- LHLewis Howes
Mm
- JSJay Shetty
... to make money. Because I started working at 14, I used to get paid £2 per street that I delivered newspapers on.
- LHLewis Howes
Wow.
- JSJay Shetty
So imagine there's 100 houses. It's gonna take me, like, I don't know-
- LHLewis Howes
Not per house.
- JSJay Shetty
No, no, no.
- LHLewis Howes
Per street.
- JSJay Shetty
Per street.
- LHLewis Howes
Oh my gosh.
- JSJay Shetty
So I did five streets, and so I'd get £10-
- LHLewis Howes
Wow
- JSJay Shetty
... at the end of the week if I did five streets, and each street would take me at least an hour.
- LHLewis Howes
Wow.
- JSJay Shetty
May- maybe, I don't know, something like that. And so I'd walk around, I'd pull this thing, and I'd deliver it, and I got an understanding of how hard it was to make money, but then that became a story for me, going to your point.
- LHLewis Howes
Making money is hard.
- JSJay Shetty
Making money is hard.
- LHLewis Howes
Mm-hmm.
- JSJay Shetty
And that there's only a l- certain amount of money you're allowed to make-
- LHLewis Howes
Mm-hmm
- 26:38 – 28:39
Transform How You Think About Money
- JSJay Shetty
how do we start to rewrite that story now that we're aware?
- LHLewis Howes
Well, it's so powerful that you said that, and I remember this vividly because I met you on Halloween 2017, right?
- JSJay Shetty
Yeah, eight years ago. Yeah.
- LHLewis Howes
And we... I said, like, "Cancel the day. Let's just hang out all day."
- JSJay Shetty
Yeah, you had a book coming out that day.
- LHLewis Howes
I had a book that came out that day-
- JSJay Shetty
Yeah
- LHLewis Howes
... on Halloween-
- JSJay Shetty
Yeah
- LHLewis Howes
... which is called The Mask of Masculinity. Anyways, how do we rewire our brain around money to create more abundance?
- JSJay Shetty
When you have nothing.
- LHLewis Howes
When you have lack. How do we rewire our brain to create abundance when you have nothing, and you don't know how to earn more money? The first thing I think you need to be aware of is that your beliefs dictate your behaviors. So if you believe that money is bad or people who make a lot of money are bad and take advantage of others, and therefore me having lack right now means I'm a good person, and I don't want to become a bad person, then that belief is gonna dictate your behaviors, and you're going to stay in lack. You're gonna stay in scarcity, and you're gonna see opportunities that only give you just enough as opposed to opportunities that could create incredible wealth for yourself financially but also an emotional wealth that you've never had before. So that's one of the things you want to understand is first that your beliefs dictate your behaviors.
- JSJay Shetty
That's a big one, by the way.
- LHLewis Howes
Yeah.
- JSJay Shetty
That's huge.
- LHLewis Howes
Yeah.
- JSJay Shetty
Like, that... I just want to point that out for people. Like, that's so true.
- LHLewis Howes
Huge, because your belief-
- JSJay Shetty
Yeah, it's huge
- LHLewis Howes
... your belief got you to a place of, "I am impacting hundreds of millions of people from these, these videos that I created with my talents, but I don't know how to make money with them, and I don't know if I actually should because then I could be bad and wrong, or people could perceive me as I did something bad-
- JSJay Shetty
Yeah
- LHLewis Howes
... to make this money."
- JSJay Shetty
Correct.
- LHLewis Howes
"And I'm a spiritual person. I'm a monk. I've done all these things. I don't want to have that life."
- JSJay Shetty
Yeah.
- LHLewis Howes
"But I want to make an impact, and I don't want to be poor."
- JSJay Shetty
Yeah.
- LHLewis Howes
So I think a lot of people are struggling with that mindset.
- JSJay Shetty
What are the other ones you hear? What are the other... Focusing on that beliefs period.
- LHLewis Howes
Yes.
- 28:39 – 36:47
Unlock Wealth With This Mindset Habit
- JSJay Shetty
What other stuff do you hear from people?
- LHLewis Howes
The biggest shift that will create abundance in your life is a mindset habit in unlocking wealth for yourself, and one of the big lies or one of the big blocks that holds people back from financial opportunity is that I, I cannot be generous with my time, my wisdom, my knowledge, or my secrets to others 'cause if I am, they will take it and run with it, and I will be left with nothing. So therefore, I'm gonna hoard my energy. I'm gonna hoard my time, my knowledge, and only keep it to me so that others don't have good ideas or have my health. And from all the different billionaires and millionaires and financial leaders in the world that I've interviewed, I know you've interviewed a lot of them, there is a question I would always ask individuals who've made incredible amounts of money and that keeps helping them create more wealth year after year, and they all say the same thing. Those who have had a sustainably good heart in the process is that you have to have a generous mindset. So the mindset habit is the first thing that you have to think about when creating abundance with your money but also feeling abundant internally, and it's coming with generosity. So if you feel like you're stuck right now, if you feel like you have nothing, this was what you were at eight years ago when I met you. This was where I was at 15 years ago when I was on my sister's couch. I had no money. I was in student loan debt, was sleeping on her couch. I didn't think I had any skills. I didn't have a college degree yet. I was like, "How am I gonna make money if I don't know how to make money, and I don't have any talent or skill, and I'm in debt?" I didn't understand it. It felt impossible, and the thing that I shifted when I started meeting money mentors is I needed to learn the first habit, which is the mindset habit, which is a habit of generosity and gratitude.
- JSJay Shetty
So what did that look like then? What was the practical step?
- LHLewis Howes
What it looks like was, how do I meet money people, people who have money, people who have success, people who can teach me knowledge? I needed to come with a sense of energy, of curiosity, of possibilities, and of joy. I literally wrote a list down of all these different things that I thought were my talents. I go, "How can I make money? I don't have any skills. I played football. Now I'm injured. What can I do for people?"But I was like, "Well, I'm really curious. Maybe I can just ask people questions." And never did I think in a million years that I could have a 12-year-old podcast just asking questions and make millions of dollars a year. I never thought that was possible. I was in my early 20s, and I was like, "You know what? I've got a lot of energy. I've got a lot of passion. So let me bring passion and energy to other people, and excitement." And that energy was infectious, and there's a currency that's tied to that energy of passion, joy, excitement, curiosity. That currency may not look like money, but for those who are older, who have no more passion, they're burnt out, they're exhausted, it is the highest form of currency. They want that. They crave that energy. They've burned themselves out for decades. They wanna feel young again. They wanna feel curious again. They wanna feel excited again. And when you come to someone with that energy, you are bringing a different mindset. So the mindset of curiosity, joy, passion, presence, like, just connecting with someone and asking them a question is such a valuable currency. So we have to look into these untapped-
- JSJay Shetty
Yeah
- LHLewis Howes
... skills, talents, currencies-
- JSJay Shetty
Codie
- LHLewis Howes
... inside of us that are hidden to others, but inside of us, they can create magic.
- JSJay Shetty
Yeah.
- LHLewis Howes
That's one of them. Another one is just being generous with your time, with your resources, with your ideas, and helping others succeed.
- JSJay Shetty
I love that because I didn't even know that then, but I was doing it unconsciously.
- LHLewis Howes
Yes, you were.
- JSJay Shetty
So I really wanted to interview incredible people, but I didn't have a platform at the time when I met you. And so I'd partnered up with Nasdaq.
- LHLewis Howes
Mm-hmm.
- JSJay Shetty
And by the way, just to be really clear with everyone, I didn't get paid to do this.
- LHLewis Howes
Yes.
- JSJay Shetty
So Nasdaq had something where everyone was using Facebook Live, and I said, "Hey, could I have an hour in the Nasdaq building whenever I have an amazing guest that says yes so that I can interview them on Nasdaq Live?" And they would put the picture up on the middle of Times Square.
- LHLewis Howes
On a billboard.
- JSJay Shetty
So now I could reach out to people I looked up to.
- LHLewis Howes
And that's the reason why I went on the show.
- JSJay Shetty
Exactly. [laughs]
- LHLewis Howes
'Cause I didn't know who you were until I saw, "Hey, I can get you on a billboard on Times Square." I go, "That's value to me right now."
- JSJay Shetty
Value to you. I'm being generous, and I'm trying to find a way because I don't-
- LHLewis Howes
Exactly
- JSJay Shetty
... have anything to offer.
- LHLewis Howes
Nothing at all.
- JSJay Shetty
But I admire you. And it was all people I admired. It was yourself. It was Ryan Holiday said yes. Me and Ryan had met maybe once before that, but Ryan came on that show. And there were a bunch of other authors.
- LHLewis Howes
Uh-huh.
- JSJay Shetty
Deepak Chopra came on that show with me. And it was all people that I'd admired, looked up to for a long time, and exactly that. That's h- first of all, we became great friends off of it.
- LHLewis Howes
Yes.
- 36:47 – 39:15
How To Contribute Without The Credentials
- LHLewis Howes
I interview... I don't know if you've had Ken Honda on, but he wrote-
- JSJay Shetty
I know Happy Money.
- LHLewis Howes
Happy Money.
- JSJay Shetty
But I haven't had him on, no.
- LHLewis Howes
Dude, he's so cool.
- JSJay Shetty
Yeah.
- LHLewis Howes
I love this approach to this. And he's talking similar style about how do you just live a rich life?Irrelevant of whether you have money or not, and again, this is the one I want people to get to, when you are poor, when you're broke, when you're struggling financially, it feels really hard to feel abundant and rich. And we wanna start shifting our thoughts, our emotions, and our energy on, okay, I know I'm in this financial situation. It doesn't feel good, but in order to get out of it, it's not feeling worse about it. It's starting to feel better about me, better about my values, my character, my kindness, my generosity, and seeing, how can I add value to others? And that's the first thing we need to be thinking about. How can I get into a richness inside of me to serve others and take care of me at the same time? And one of the practices or these social experiments or exercises similar to you that Ken has is that whenever money comes to him, whether it's a check, whether it's a Venmo payment, whatever it might be, he just says thank you to that money.
- JSJay Shetty
Mm.
- LHLewis Howes
He looks at that number.
- JSJay Shetty
Mm.
- LHLewis Howes
If it's a penny, if it's a million dollars, if it's your, your normal check you get coming in, uh, in the mail every two weeks, he looks at it and says, "Thank you," and literally opens his heart and loves that money that comes to him. He says, "Thank you. Where do you wanna go?"
- JSJay Shetty
Mm.
- LHLewis Howes
"Do you wanna go into my bank account? Do you wanna go to my savings? Do you wanna go to investments? Do you wanna go towards paying off debt? Do you want me to give you away?" And it might be a weird kind of like-
- JSJay Shetty
No, I like it. Yeah
- LHLewis Howes
... ex- exercise, but I love this approach to just being mindful of money when it comes, say thank you, and then when you pay bills, when you pay off debt, say thank you as well. Thank you for allowing me to pay off this debt. Thank you for paying my cell phone bill so I can call my friends and family that I love.
- JSJay Shetty
Mm.
- LHLewis Howes
Thank you for the ability to live a richer life.
- JSJay Shetty
Yeah.
- LHLewis Howes
And when we start to approach money in that way, it doesn't mean money's gonna fall from the sky and come to us abundantly.
- JSJay Shetty
Mm.
- LHLewis Howes
But we're gonna start to feel more rich and abundant internally, which that energy is what will attract more opportunities.
- JSJay Shetty
Yeah.
- LHLewis Howes
Those opportunities could lead to millions. This hostess that came to you, she brought that thankful energy, that present energy, that loving, joyful, curious energy, and it created an abundance of opportunities-
- JSJay Shetty
Yeah
- LHLewis Howes
... and connection.
- 39:15 – 39:50
The Wealth Formula That Actually Works
- JSJay Shetty
Next up is Jaspreet Singh, who talks about the wealth formula. Now, this was one of our most popular episodes, and I'm so excited for you to learn from him. He talks about the difference between building wealth involving both saving and investing. It's not an either/or. He also talks about understanding the formula, income minus expenses equals investments plus savings. And investments are the key to maintaining wealth even after making millions. If you're someone who's been wanting to learn more about investing, this clip is for you.
- JSJaspreet Singh
What
- 39:50 – 42:13
The Two Ways To Create Wealth
- JSJaspreet Singh
are you doing with your income? You can either build the equity by starting a company yourself or by building a home, or you can buy the equity. Now, how do you do that? Well, you have to understand the wealth formula. The wealth formula that I come up-- that I've come up with is you take your income minus your expenses, and that equals your investments plus your savings. So if you take your income, the amount of money that you make, and now you subtract all the things that you buy, your rent, your mortgage, your car payment, your groceries, your gas, you take away all of your expenses, and if you have a margin, well, now you have extra cash. Now, you can save all or some of this money. But if you don't save some of it, then that money can be put to work in your investments. These investments, like I've been hinting at, is what makes wealthy people wealthy, and it's what keep wealthy people wealthy. These investments can be in the stock market because any time you buy a share of any company, if you go out and buy a share of, say, Amazon, you become one of the owners of the Amazon corporation. You get to share in the profits. If the Amazon valuation goes up, your stock price goes up. The second way would be through real estate. Not through your home, but through a real estate investment, buying a rental property that you're buying for the sole purpose of making money. This is something that they can pay you every week or every year, every month. Uh, then it can be through your own business, or if you don't want to build your own business, you can invest in startups. It's much more accessible now. You can own physical gold. You can invest in cryptocurrency if that's something that you believe in. So there's a lot of different ways to build this equity, but this is where now you need to be putting your money to work to actually buy and own and build this equity.
- JSJay Shetty
Yeah. Those are-- I mean, I-- first of all, I just want to say I love how structured your thinking is, and it's so great to break things down. And so anyone who's been listening or watching so far, make sure you go back and ask yourself which of those habits you're struggling with. Are you someone who's in the two S's, choosing to either spend or save? Are you someone who's being slowed down by systemic thinking and, like, being controlled about where that goes? Like, really take a moment to reflect in this episode while you're listening which part you want to work on because I know right now some of you may be tempted to just turn this off and go, "I'm overwhelmed. I don't want to hear about this. I'm scared about my money already. I don't want to talk about it," but I'm hoping that this is creating space for you to really sit down, introspect, and reflect.
- 42:13 – 53:12
The Scarcity Mindset Holding You Back
- JSJay Shetty
Going into that, I think one of the biggest issues that people have when they hear this, and I know that I had a long time ago when I first heard this, was I don't have enough to do anything with. And so I remember when I started hearing about crypto specifically, like very early on, like, I probably heard about it, like, maybe, like, 13 years ago, probably the first time.
- JSJaspreet Singh
Wow.
- JSJay Shetty
Yeah. I was v- very early heard about cryptocurrencies about 12, 13 years ago, and I had just come out of the monastery, so I didn't have any money. Like, I didn't, I didn't have anything to invest. And probably in about a year, I probably would have had, like, a thousand to invest. In my head, I go, "That's not anything. [laughs] Uh, what's that gonna do?"
- JSJaspreet Singh
Yeah.
- JSJay Shetty
Right? And I think a lot of people have that mindset where they're like, "I only have $500. I only have $1,000. Like, what can I do with that? I might as well spend it on whatever it is because-- or I'm gonna save it because I need it for a rainy day."What does someone do when they have that mindset, when they're like, "I don't have enough"? How, how do you approach that?
- JSJaspreet Singh
So when I was in high school, I really wanted a Ford Mustang, but my dad was like, "No, you can't buy a Ford Mustang." I wasn't gonna get that car. Um, but this is again, when stock prices had crashed. And the next best thing, if I couldn't buy a Ford Mustang, this- and I started reading the business books then, was how about I buy some of the Ford stock? Again, I didn't have a lot of money. My first investment in the Ford stock was $2, because that's how much the stock was trading for. Now it's much higher, but what I'm trying to get at is, you know, you can start with a very little amount of money. I mean, nowadays with the new age of stock brokerages, if you have $10, you can start buying this type of equity. You can start building this type of equity. But the key now is the consistency and how oft- like doing it all the time, because when I say consistency, people say, "Oh, anytime I have $100." Well, okay, what you wanna do by consistency is make it automatic. Anytime you get paid, take a portion of that money and automatically invest it. Now, the next question is probably, where do I put this money? Do I just throw it into Tesla or Amazon? Well, if you're not willing to do that level of research, or you don't wanna try to find the best companies, you don't wanna invest in real estate, you don't wanna get into the more, you know, let's say, the more advanced type of stuff, you wanna just put your money to work, well, the simplest thing you can do is look at something called an ETF, which is an exchange-traded fund, which gives you exposure not to one company, but many companies, maybe hundreds of companies. For example, there's something called the S&P 500, which is a group of the 500 biggest companies on the stock market, essentially the 500 biggest companies in America. You can invest in the S&P 500 by investing in just one symbol. So you invest in this one thing, and you're getting exposure to 500 different companies. Now, you don't have to worry about what each of these 500 companies are doing. You're just investing essentially in America, the future of the American economy. If that's something you believe in, well now every time you get paid, put in $100. And now you just do this for the long term, whether the market is up or down, does not matter. It should not change your strategy. You just keep passively investing your money, make it automatic, make it passive. That way you don't have to even worry about it, and now you just keep building it up, because now it's the whole idea of compounding. You don't wanna just throw your money in at once. You wanna put a little bit of money in, let that grow, put more money in, let that grow, put more money in and let that grow. I made a couple videos where I talked about two people. One was a janitor, one worked in a school. Both of them made very little income, yet both of them retired very wealthy. And the reason we- and I'm talking about in the millions of dollars, and the reason why they've been able to retire with a million dollars plus was because they took a little bit of money every time they got paid, and they just invested that money. It did not matter, you know, what else was going on in the world. They always paid themselves first. They always invested in assets before they started going out and buying things that made them look rich. Every single time. And when you put that little bit of money to work, whether you're starting with $25 or $250 or $1,000, when you put that money to work and you do that consistently, over time, you can build real wealth. I mean, if you look at a compound calculator, a few hundred dollars a month compounded from the age of 21 to 65, getting an average rate of return, I mean, we're talking about millions. But it just starts with making a small investment first and being consistent with it, and always be willing to learn.
- JSJay Shetty
I love that, and I'm glad you brought that up because I think the other option, so as I was saying there is the issue is I don't have enough, it's not gonna matter, right? Like, that's one mindset. The other mindset is, and it's almost the opposite, it's the idea of like, but I wanna make money quick.
- JSJaspreet Singh
Yeah.
- JSJay Shetty
Right? And I feel like it's like, I don't know, but I want it now. And I think there's this mindset, especially what you keep saying about the, how the lifestyle's been portrayed-
- JSJaspreet Singh
Yeah
- JSJay Shetty
... that we almost feel like people just change their lives overnight-
- JSJaspreet Singh
[laughs]
- JSJay Shetty
... and that they all of a sudden have, like, a portfolio of rental properties-
- JSJaspreet Singh
Yeah
- JSJay Shetty
... or they all of a sudden have the nice house or the nice car or whatever it may be, and all of a sudden we're wondering, "Well, how does it happen that quick for me?" And then we get stuck in a get rich quick scheme-
- JSJaspreet Singh
[laughs] Yeah
- JSJay Shetty
... or we get stuck in, like, some-
- JSJaspreet Singh
Yeah
- JSJay Shetty
... quick win. How do... It sounds like to me that one of the biggest trainings is in the discipline of being able to postpone pleasure.
- JSJaspreet Singh
Yeah.
- JSJay Shetty
Because what you're saying in any market is it's gonna take time. Like, you had to save up four, four to 8,000 for your first condo that you bought.
- JSJaspreet Singh
Yeah.
- JSJay Shetty
First of all, you had to work for that money. You had to save that money-
- JSJaspreet Singh
Yeah
- JSJay Shetty
... so that you could invest it.
- JSJaspreet Singh
Yeah.
- JSJay Shetty
Then you were able to buy this 8,000 condo, which, which obviously it has had great, you know, growth, I'm sure. But there was a lot that took to get to that, whereas I think right now people are like, "Oh, well, I'd rather spend the $100 on this."
- JSJaspreet Singh
Yeah.
- JSJay Shetty
Right?
- JSJaspreet Singh
It, it's, it's a real decade of sacrifice, and there's really no way around it. If you want to fast track your way. Now, the best investment you can make if you want the better returns, the bigger returns, is by investing your money in yourself. And the, the tough part is you gotta be willing to go through the time and the effort because you're right, it takes time. I'd, you know, unless you have that experience already there, you have the mentors, you have, you know, peer parents, people who can guide you through it, maybe you can shorten it, but I didn't have that. So for me, it took me a solid decade to figure it out, to go from business idea to business idea to business idea, to get f- go through failure over failure, to get scammed after scammed. Those things are what teach you. And when you're going through it, it sucks. You don't realize that you're going through a lesson. You just feel like, "Dang, I just got screwed over."
Episode duration: 53:12
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