Yo, Yo!

2023 is almost up! How crazy is that?!

Today, I wanted to talk about 3 tips from LEGENDARY entrepreneurs, Alex Hormozi, Jeff Hoffman, and Naval Ravikant.

Before we get into it, don’t forget—with a new year comes new goals.

We’ve created 2 free resources to make sure you kick ass in 2024:

• Wealth Your Way: An educational email course to help you design goals to fit your lifestyle, develop habits to become your ideal persona, and ultimately, accomplish your financial and personal goals.

• 2024 Goal Setting Toolkit: Comes with Goal Setting One Sheet, 2023 and 2024 reflections, and amazing free bonus content from David Osborn and Matt King to help you craft your vivid vision and turn that into your 2024 action plan.

(Subscribe to both if you haven’t because they teach similar things in a different format, which might help it sink in better)

OK, let’s get to it!

1. Don’t follow the money. Follow excellence.

In the quest for success, beware the distraction of chasing money. Instead, prioritize excellence.

Jeff Hoffman, a business billionaire, achieved wealth by focusing on excellence, not money.

Quit worrying about money. Create something amazing. The money will follow.

Money comes in two types: good and bad.

• Good Money: Energizing, results from pursuing excellence.

• Bad Money: Draining, from uninspiring tasks.

Chasing excellence is invigorating. It attracts the right money.

One of the best pieces of advice I’ve heard is to work on what feels light and outsource what feels heavy and drains you (even if the light task is harder than the heavy task).

For your 2024 goals, make sure you prioritize becoming excellent at skills and character traits.

2. Invest in S&Me. Not the S&P.

Alex Hormozi famously states to invest in yourself instead of the stock market.

This flies in the face of most financial advice that tells you to buy index funds and dollar cost average into the market.

Why is this a better investment? Because the return on your investment is much higher than an index fund can be.

On average, an index fund has returned 7-10% per year (even though it can have down years of over 50%).

Consider this: $1,000 in S&P 500 may yield $16,000 to $20,000 in ten years, but the best-case profit is $9,125.

10 years to make $9,125? There has to be a better way…

The Better Way: Self-Investment

Instead of focusing on a 10% return, focus on a 10x return.

Here are some examples of self-investment:

• Join a real estate mastermind: A $2,000 per year investment can lead to $2,000 per month in cash flow, a new investment opportunity, a business partners, help with questions, etc. That little investment can easily have a 100x return (or greater).

• Get sales training: $1,000 investment can increase your annual sales by over $10,000. Depending on what you sell, it can be over $1,000,000.

• Take an Instagram course: Invest $500 into a course to drive sales with reels and stories, etc.

See where you can stop spending money (like on a subscription, going out, etc.) and replace it with a course to improve your skillset.

3. The 4 types of leverage to get rich

Naval Ravikant once said, “To get rich, you need leverage.”

Leverage is a multiplier. It’s how to increase your output per input.

Without leverage, you are constrained by your time, energy, and resources. With leverage, you can scale.

So instead of 1 unit of effort = 1 unit of results,

It’s: 1 unit of effort = more or infinite units of results.

Here is how we can apply this concept of leverage to building wealth:

4 types of capital to leverage to build wealth

Human Capital:

Labor is the oldest form of leverage. It's when other people work for you.

They do lower-leverage tasks so you can focus on higher-leverage opportunities.

Let’s say you own short-term rentals.

You can’t scale your STR business doing everything yourself.

• No leverage: You clean your own STR

• Leverage: You hire a cleaner

Now you can focus on higher-leveraged tasks, such as looking for the next investment or improving operational costs.

Money:

Capital is money. Leverage is borrowed money. It helps you buy assets faster.

Let’s use the example of buying a house:

• No leverage: You buy a $100k home with $100k

• Leverage: You buy a $500k home with $100k.

We use leverage to get cash-flowing assets that we normally wouldn’t be able to afford in full—allowing us to increase our net worth and cash flow.

Technology (or code):

Using technology is using a machine’s time and labor.

Jeff Bezos, Mark Zuckerberg, & Steve Jobs built their wealth on code.

Since 2023 was the year of ChatGPT, this is the perfect example:

• No leverage: Hand write a book with pen and paper.

• Leverage: Use ChatGPT to write a book in 5 seconds.

A good example of technology for real estate investors is the MLS, dynamic pricing for short-term rentals, CRMs for wholesalers, etc.

Media:

Media is about getting other people's attention.

Capturing people's attention helps you find deals, partners, get customers, build a following, raise money, etc.

To do this with real estate, you create content, courses, books, etc. around your business. Once you create the content, there's no marginal cost to share it with 1 person or 1 million people.

• No leverage: Cold call 100 people

• Leverage: Post once, get in front of millions of people.

Take action today!

First, find some tasks that you HATE doing and outsource it.

It can be as simple as a laundry service, hiring a virtual assistant, or hiring a specialist. Going back to Jeff’s advice, find work that feels LIGHT, and outsource what feels HEAVY.

Second, find some ways to start using media or technology more than you’re currently doing.

Alright, that’s it for today.

Have a great weekend!

Diego

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