How They Keep You POOR! (Watch This To Become A MILLIONAIRE In 2023) | Alex Hormozi

Lewis Howes・2 minutes read

Poor individuals often struggle with a mindset that hinders financial progress, emphasizing the need to reallocate resources and invest in skill development to break free. Developing a range of skills, focusing on sales, building, and leadership, can exponentially increase earning potential and opportunities for financial success while prioritizing personal growth and overcoming limiting beliefs about money.

Insights

Society can influence individuals to adopt a mindset that limits their financial potential, but breaking this cycle requires reallocating resources like time and money towards skill development and education.
Developing a diverse skill set and continuously learning are crucial for increasing earning potential and financial success, as exemplified by Jay-Z's career trajectory and the impact of skill acquisition on financial growth.
Overcoming limiting beliefs, embracing new challenges, and shifting focus from external to self-validation are essential for long-term success, goal achievement, and personal growth in business and life.

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Recent questions

How can poor individuals improve their financial prospects?
By reallocating time and money, investing in skill development.

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Summary

00:00

Breaking the Broke Mindset: Keys to Financial Success

People who are poor often have a mindset that makes them believe making money is impossible or only for certain individuals.
Society can keep people trapped in a broke mindset, hindering their ability to progress financially.
To break this mindset, individuals need to reallocate their resources, including time and money.
Poor individuals tend to spend time on distractions like video games and Netflix, rather than investing it in productive activities.
Working in low leverage opportunities can limit financial growth, unlike high leverage opportunities that require skill rather than money.
Investing in skill development can increase output per unit of time, providing leverage and enhancing financial prospects.
Education, whether conceptual or practical, is crucial for gaining leverage on time and increasing earning potential.
Borrowing for education that leads to a return on investment can be a sound financial decision, as seen in the example of becoming a phlebotomist.
Investing in mentors, coaching programs, and communities can provide valuable perspectives and skills that lead to financial growth.
Developing a range of skills, like Jay-Z did in his career, can exponentially increase earning potential and opportunities for financial success.

11:41

Mastering Skills for Business Success and Wealth

Learning how to package and sell businesses, negotiate deals with private equity, and develop CFO skills can lead to significant earnings.
Emphasizing continuous learning through various courses, programs, books, and interactions is crucial for personal growth and success.
Three main skills for potential six or seven-figure earners are selling, building, and leading in business.
Identifying problems, inefficiencies, or nuisances in daily life can lead to successful business ventures.
Example of a dog walker in Beverly Hills earning around $3,000 a day by addressing the need for pet care services.
Developing skills in selling, delivering consistently, and leading are essential for business success.
Leading oneself and others is a challenging yet crucial skill that can enhance overall success.
Focusing on reducing procrastination, finding dedicated work time, and deep focus can significantly increase productivity.
Setting intentions and taking actions aligned with one's vision daily can lead to progress and success.
Learning new skills effectively requires about 20 hours of focused effort, emphasizing the importance of starting and consistent practice.

23:03

Accelerate Skill Development and Financial Success

Learning a new skill is most effective in the first 20 hours, where significant progress can be made.
Procrastination can hinder skill development, as seen in the example of taking four years to learn website building versus one day of focused learning.
Many individuals delay launching projects like podcasts or books due to fear and lack of understanding of the process.
Overcomplicating the path to financial success, such as reaching seven figures, can be a mental barrier for many.
Breaking down the math behind financial goals, like making a million dollars, involves understanding the number of sales or services needed.
To reach six figures, selling a product or service consistently is crucial for business owners and entrepreneurs.
The primary actions to achieve sales involve reaching out to potential customers through referrals, affiliates, one-on-one interactions, content creation, and ads.
Understanding the math behind acquiring customers, like needing six appointments a day, helps in strategizing the necessary actions.
Scaling a business involves focusing on both customer acquisition and team building, with the same marketing skills applicable internally.
Overcoming limiting beliefs about money often stems from false assumptions ingrained over time, requiring a shift in mindset based on accurate information.

33:39

"Beliefs, Success, and Legacy: Keys to Growth"

Beliefs can be shattered by reality proving them wrong or by hearing stories with evidence that reshape one's reality.
Witnessing others' success can inspire belief in one's own potential, as seen in a mastermind event where a seemingly average individual's success motivated others.
Learning from others' experiences can prevent unnecessary struggles and accelerate personal growth, as seen in observing older siblings' mistakes and successes.
Coaches and mentors play a crucial role in challenging beliefs and guiding individuals towards success by sharing their knowledge and experiences.
Competition can be reframed as a means to elevate the game rather than focusing solely on personal achievements, as exemplified by a football coach's approach to coaching.
Leaving a legacy by sharing knowledge and skills with others is essential for progress and growth, as demonstrated by a coach who freely shared his expertise with assistant coaches.
Prioritizing the game's advancement over personal glory is crucial for long-term success and impact, as exemplified by the coach's dedication to elevating football standards.
Setting ambitious goals, like reaching a billion-dollar valuation, is driven by a desire to leave a lasting impact and share valuable business insights for future generations.
Embracing new challenges, like venturing into media, can lead to personal growth and expanded impact, as seen in the speaker's enthusiasm for learning and adapting.
Maintaining a limitless vision for growth and impact is essential for sustained motivation and avoiding post-success disillusionment, as observed in a friend's experience after selling a billion-dollar company.

45:13

Strategic Vision and Risk for Goal Achievement

Having a clear vision for one's life is crucial for progress and direction.
Setting ambitious goals like becoming a billionaire in a specific timeframe requires strategic planning.
Publicly stating longer timelines allows for flexibility and buffer in achieving goals.
To accelerate goal achievement, consider taking on more risk or expanding operations.
Adjusting mindset and behavior to ensure goals are met is essential.
Reevaluating how success is measured and reinforcing positive behaviors is key.
Financial decisions, like reinvesting cash flow into talent acquisition, can expedite growth.
Being comfortable with discomfort and taking risks is necessary for rapid success.
Adapting to changes in financial security and shifting priorities can lead to quicker goal attainment.
Utilizing material success to combat feelings of inadequacy may require internal shifts for long-term success.

56:43

"Maximizing Potential: Shifting to Self-Validation"

Re-engineering self-value conversation is crucial, focusing on self-worth, self-love, and belief in being good enough.
Evidence from successful businesses like acquisition.com serves as validation for personal beliefs and content creation.
External validation's impact on self-worth is rooted in childhood reinforcement patterns.
The need for external validation can hinder personal growth and success.
Shifting focus from external to self-validation is essential for personal development.
Overcoming the need for external validation is key to achieving potential and self-belief.
Winning is defined as maximizing potential and transforming it into reality.
The best businesses for investment have low capital expenses, such as services and digital businesses.
Businesses with high leverage opportunities and strong gross margins are ideal for investment.
Longevity and consistent profitability are indicators of successful businesses with high leverage opportunities.

01:08:37

"High Margins Drive Business Efficiency and Success"

Gross margins above 80% are targeted, equating to five times the cost of goods sold.
The minimum charge is calculated as five times the cost, ensuring profitability.
Emphasis is placed on providing value and efficiency in business operations.
Technology reduces costs over time, making products accessible to more people.
Niche down and focus on a specific customer avatar to increase efficiency and margins.
Repetition and specialization lead to increased efficiency and cost-effectiveness.
Hiring the best people and investing in marketing are facilitated by higher margins.
The difficulty of making money with low margins is highlighted.
The concept of a 100% death tax is discussed as a means to redistribute wealth.
The impact of a 100% death tax on wealth distribution and societal beliefs is explored.

01:20:36

Navigating Business Sales and Personal Growth

The speaker reflects on past ventures starting from a place of lack, leading to eventual loss and repetition of the cycle.
After selling companies, a period of inactivity ensues, causing emotional distress and a lack of purpose.
The speaker highlights the challenges of maintaining stability during a sales process, with uncertainty looming over the outcome.
The decision to sell leads to a shift in focus towards satisfying potential buyers, which the speaker later regrets.
A two-year process of fixing and selling a business is compared to renovating a house before selling it.
The speaker contemplates the choice between selling a business for profit or keeping it for long-term cash flow.
The launch of "School of Greatness" is driven by a desire to serve and create lasting change rather than solely for profit.
The importance of intention in business building is emphasized, with a focus on service and global impact over immediate gratification.

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