George Kamel - Millionaires In Cars Getting Coffee with Alex Hormozi

Episode Date: July 24, 2023

Today, I am joined in the Old Tesla by the author, investor, entrepreneur, and centi-millionaire Alex Hormozi. You've probably seen his videos on YouTube, TikTok, or heard his podcast "The Game." Alex and I discussed wealth, investing, work-life balance, and more, while enjoying coffee (and muscle milk). I love a good deal, when you sign up using this link, I’ll hook you up with a 14-day free trial and $15 off your first year of the premium version of EveryDollar.   Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices

What is the best path for them to make their first million? The highest income things that you can do at a base level is sales-related. I think a lot of people subconsciously. They don't actively make the decision. They just let life make that decision for them. And then they complain about it because then they feel like they're a victim. They're not in control. So the noise from broke people.

Yes. Turn that down. Don't listen to poor people about how to get rich. Get takeout. Don't cook your food. Very contrarian. I know. I do have some beef with the video.

I know what you're thinking. Was I just seeing devil? Are those guys brothers from another mother? No, don't be mistaken. That guy was author, investor, entrepreneur, and centi millionaire, Alex Hormosey. You've probably seen his videos on YouTube, TikTok, Instagram, or heard his podcast, The Game with Alex Hormosey. And joking aside, we do have some similarities. I mean, we're both Middle Eastern.

We were both born in 1989. And we both love helping people become more successful with money. Which is why I invited him for a ride in the old Tessie to grab a little pick-me-up. And before you drop in on this juicy convo, help me get you get a little bit. this video as many likes and subscribes as possible so I can convince Alex to keep hanging out with me. Plus, maybe if we get enough likes, he'll come back and face me in an arm wrestling duel. Yeah, sure you guys want to see me lose to that. And while you're at it, share this video with your CrossFit bros, your lifting girlies, or your mall-walking associates.

So we can keep these likes rolling in. Let's get to it. Here's Millionaires and Cars Getting Coffee with my friend, Alex Hormosey. I'm hanging out here with Alex Hormosey and his boy, Caleb, in the best of back in case you're wondering what's going on in the back there because content he knows that this is my best side is the back of my head i didn't know you had a bad side well some of us actually the front is the bad side and so if he gets back then it leaves a lot more to the imagination i found out that the imagination does better than reality for me so you're an outspoken millionaire and i saw the word centi millionaire was just i didn't even know what that i had to look that up oh yeah but that means a hundred million or more yeah did you ever think growing up like yeah okay by my early 30s like i could

have a hundred million? Like, was that ever in your head? I could say that I was confident that I was going to become wealthy. I didn't know how wealthy. For me, my goal post moved. You know what I mean? Over and over again, the beginning, it was, you know, make as much as my dad. Then it was make more than my dad, then it was make more than my dad had ever made. And then it was, like, come up with new goals. But was the motive of coming from dad? Was that kind of a chip on the shoulder?

Yeah, totally. Because I come from a Middle Eastern background. I know your dad's Iranian. Yep. What was the thing you remember him saying to you when it came to your future and your career? Education over everything was definitely the repeated statement was that education is the most important thing. And that was because, you know, he fled during the revolution because, you know, the government had turned

and they seized all assets of anyone. The family lost lots of stuff. But the things that they didn't lose was the education, right? And so he was a physician, didn't speak English, but he came here and was able to start another life despite not speaking language because he still had a skill. And so that's something that, like, divorce can't take from you, the government can't take from you.

Yeah. can't be taxed is something that you have for the rest of your life. That's why he was so big on education. The word billionaire is an interesting word to you. And we see more now than ever. Like, billionaires like normal now. We used to be like, those barely exist. Yeah.

But what has your thoughts been on becoming a billionaire? Is that a goal for you? I would say it's less that billionaire is a goal and more, I think that that will happen along the way to what we're trying to do. And we can do business our way and win it their game. You can create a place based on respect, based on reward. that can outperform a place based on punishment and fear. How is your view of wealth changed now that you have it?

Like when you didn't have it, I'm sure it was a certain worldview of it. Like, does it matter as much to you anymore? Are you kind of at the point you're like, lobster tastes like soap after a while? Like, have you got to experience it? Or you kind of like, I'm not really, I was never really the flashiest guy in the room anyways. Well, I mean, I do have the most flashy dress.

You know what I mean? This is all Versacee. Well, people always are talking about, they want to know where you get the shorts. Like, I need Alex's shorts. I'm working on some things. Okay. This is a prototype.

This is like his Iron Man prototype. Yeah, I can fly. I'm not a material guy, really at all. I'm a pretty big minimalist. My wife, on the other hand, loves stuff. And that's totally fine because she, her whole life, wanted to have nice things. And now that she can, she does. And money decreases in utility, the more you have it.

It's only chicken and rice. It's still chicken and rice. It might be in a gold plate, but it's still chicken and rice. My aspirations and my goals continue to expand. because it's like the more I do, the more I think I can do, or I believe I can do. In the beginning, I thought I had to make a billion dollars in income to be a billionaire.

Oh. I didn't even understand it. Yeah, exactly. I didn't even understand how it worked. Like, that's how, like, new... You know, like, billionaires make a billion dollars. Yeah. That's how that goes.

I wanted to take you to the best coffee. I know you're a man of efficiency, so I thought we would do drive-through. And they're like, why I waste time going inside? And so within a one-mile radius, this is the best coffee in town. Here's white bison at the shell gas station. Within a 500-foot racing.

Yes. Hello. Hey, can I do a cold brew coffee? Nothing at it, just black is great. Do you have anything that's just filled with protein? Like, can you just grab me a muscle milk or something back there? That is so kind of you. The reason is I have Alex Hermosey in the car who's like he loves, he needs 200 grams of protein. The man is an animal.

Muscle milk chocolate. You got it. You're a blessing. Thank you so much. God bless the South. See, if that was Vegas or California, other kick rocks and pounds saying, Yeah.

They tell you to get out of the car and just leave. They're like, you know what, don't buy anything. Get out of my store. And you know what? That is an underrated fact about getting coffee at a gas station. They got some milk in the fridge back there. It's fine. It just charged me.

And I am paying with a debit card. How many credit cards do you have currently on your person? Two. Are you like, I'm going to maximize it for the points? Or are you like, that's a waste of effort based on what else I could be doing with my time? Yeah. I mean, my team pays it off every month and we just get the 3% or whatever it is. Yeah.

But you're not concerned. But you're not a fan of debt. You're not out there like leveraging tons of money. Okay, thank you so much. You're the best for doing that. You're amazing. Thank you. He's very thankful. I was going catabolic. He was going catabolic. He was becoming like shriveling up on us. I was getting small. I was shrinking. George and I got indistinguished. Yeah, I know you thought the muscle milk was for me, but it's actually for him. People, they get it mixed up a lot. It's a common mistake. Oh, and 40 grams. I'm like, I'm ready to go. Are you going to be, what happens if you have too much? Can you have too much muscle? Didn't think about it. that. The answer for me is always no.

First degree of money that I understood was that you make a billion dollars. Like I make a billion dollars in income, which regular income tax means I have to make like two billion dollars in income to be a billionaire. That was my first understanding. Because like 50% tax rate. Yeah. And I was like, gosh, okay, I mean, I got to work harder. My second level of understanding was that, oh, I can like invest money and let it compound. So then it was like, okay, if I can get like 50 million bucks earlyish and I let it compound at whatever, 9% for 40 years, I'll get.

to a billion. Oh, so you were, then you started doing math of like, how did I? And then the third level of wealth was just that I own something that's worth a billion dollars or multiple billion dollars. And that's now how I kind of understand it. There are definitely ways to get rich slower than others, but there are ways to get rich for sure. It's just that if you can measure in decades instead of days, you can veritably guarantee that you will get there. It's just that most people can't wait 10 years. I made me think of that quote, people overestimate what they can achieve in a year, underestimate what they can achieve in a decade. And from a biblical view, you know, Proverbs says wealth gained hastily will dwindle.

Whoever gathers little by little will increase it. So such a countercultural approach. Yeah. How willing are you to forego current reward for future reward, delay satisfaction? And I think that's like the one muscle that everyone needs, whether it's to have a good marriage, to get in shape, to become a millionaire. It's like, how can you do the doing and continue to do the doing without seeing the result you're doing. And the longer you can extend the time rise between when you do and when you get,

the longer you can keep doing with that gap, the more successful to it. Ooh, that'll preach. Is that the name of your next book, The One Muscle? Don't tease. This is behind-the-scenes content. No, the next book is Leeds. Oh, nice. And you talked in one of your videos about driving a Prius with a crack windshield and just not caring about what other people think. As people call the Ramsey Show, like, they just are driving these cars that are way beyond their means and buying new cars, which I've never owned a new car. I'm in the boat of if you're not a millionaire,

you can't afford to take that hit. What is your view when it comes to buying cars and people kind of using that as a flex? People might see my lifestyle now and, you know, be like, wait, this isn't the principles that you talk about. It's like, well, to your point, like, crossed 100 million bucks and, like, we can buy a new car.

Yes. Such a small part of your world to get a $50,000 car or $100,000 car. Layla and I didn't buy a new car until we were taking home over a million a month in income. Wow. And then it was because actually I went on a podcast, then a guy was like, man, you got to spend some of your money.

Like, what's the point to make all this money? And so, you know, every car that I had at that point was all used. And so we bought the Bentley, which was like a $300-something,000 car. And I returned it six months later because I had no utility for it. I was like, why do I even have this? And it was counter to like, I did it because I was like, I feel like I should do this now.

But it was just a reminder for me that like, like I was never a car guy. And having money didn't make me. If they were up to me, I'd have a blacked-out minivan. So I'd probably get like a Dodge caravan or a Honda Odyssey. What are you willing to go like, I spend a hundred-groom? Gym equipment.

You would be like, I'm gonna build a custom gym that's gonna cost 100 grand and I don't care. Way more an 100 grand, but yeah. Can you tell us what an Alex level gym will cost you if you want to build one? Well, I already have a full commercial gym worth of stuff. I had 36 commercial pieces. Wow.

So like the big, like the big pieces of equipment. Yeah, like commercial pieces. I mean, I came from the gym world, so I definitely know the equipment. You know, you'll eat out, which I do have some beef with the video. Get takeout. Don't cook your food. Very contrarian. I know.

Never eat at home. Yeah. Idiot if you eat at home. Always eat out. Caviote. That was the video. And you're earning potential for the time that it takes you to grocery shop, prep, cook, clean, etc. It's just math.

Go to the grocery store. Go to Costco. Put everything out. Wait out. Cut it. Do the whole thing. Right. Do me eight hours.

basically my whole Sunday. Yeah. It was that. The big caveat is you can't go out and then not work the time that you would have spent that. Oh, yeah. But if you, that's my thing is, that's why context is so more. You have a level of discipline that is next level. I think most people are doing like, Alex said always eat out.

So I spend $600 a week eating out. Yeah. That's kind of my, was my worry when I heard that. I was like, oh, no, it's going to be a lot of broke people because there don't get it. Yeah. They don't get what he's actually saying. No, it's always the context. It's the headline versus the subheadline.

That's big. Well, this is what people came after me for because I did the math on eating out versus eating at home and they said, well, my time is worth more than that. And I was like, they're not working 24 hours a day. Only if you trade it. That's it. I was like, you're watching Netflix the rest of the day. You're not going out and working instead. So your first million. Obviously, you're an entrepreneur in that space. For those that maybe they just, they have a job. And they, they're just doing that. They work for someone else. What is the best path for them to make their first million? The highest income things that you can do at a base level is sales related. Anything that's

revenue generating is going to be the only thing that'll have like an uncapture earning potential. Basically, commission-based roles are going to be your best bet. Instead of hoping for a $2,000 raise the next year, go where you can kind of own your salary a little bit more. You do. You have way more control. I mean, you have like you have salary plus bonus jobs, and then you have salary and then you have commission jobs. Not to say that you can't have a massive salary, but if you're somebody who's getting $500,000 in your salary, you're probably not listening to this thing. You've got to sell other people's stuff in the beginning. And then over time, what you want to do is sell more expensive stuff. So the more zero is on the price tag of the

thing you sell, the more money you make. Well, before we go, I want to know best money advice for that younger person, let's say they're 18 or 25 or 30, and they're not where they want to be financially. What is the best money advice that you've either heard or given? Ignore everyone around you who's poor. So the noise from broke people. Yes, don't listen to poor people about how to get rich. Most of the decisions that the young, you know, the teen, the young 20, the mid-20 make is as a result of the status that they think they're going to get from their peer group for buying the car, for moving to the zip code, for wearing the shirt. It's a lot of status-based.

100%. The thing is, is you have to go from external status to internal status, which is that you approve of yourself. Well, run in your own race. Right. I mean, that's a life hack. That's a superpower. Okay. Let's say that you're not going to be super-minister confident, right? Because I've never claimed to be that. I definitely have had many of my insecurities. Be smarter about the status you're trying to get. because you getting this short-term status means you're cool in your 20s, but then you're not cooling your 30s and your 40s and your 50s. How do you do, fellow kids? Well, you spend that time trying to get unbroke from all the stupid decisions you made

to impress people you didn't care about. Right. Like, I came from a white collar consulting background. I went to Vanderbilt. I graduated in three years. I had above a GMAT score, above Harvard's GMAT score. Like, I did that. And when I was like, yeah, I'm going to quit all this and be a personal trainer,

like what do you think the reception was? Oh, they're all going to, well, you know what they really were like? they were like, oh, he's out of the race. Oh, he's going to go be happy. But that was never the plan. They thought they beat me. And so it was just like I was playing a longer game. And so like I didn't go into training or start the gym because I wanted to have one gym.

I wanted to have a hundred gyms. And I knew that going into it. But when I was sleeping on the floor and like I went from making, you know, almost six figures to whatever somebody who makes them money makes to then I had $50,000 saved up because I did live cheap. Yeah. And because I had that $50 grand when I was 20, or 23 is when I left my job, I could open my gym. I mean, I slept to the gym because I couldn't afford two rents.

And the idea was that, like, everybody else who was in that white-collar world was now ahead of me on that path. And so I was comparing their year three or their year five on their path, us compare, like, I don't like the idea like comparison is the thief of joy. I actually fundamentally disagree with that. Comparison is required in order to measure where you're at. It's a ruler, right? Judgment based on the comparison of where you're at. It's only by me saying that he's a. ahead of me, and that makes me bad, is where the thief of joy comes from. But if I say he's

ahead of me, what can I learn from him? There's no, there's no thief of joy. I'm just being a student. Well, Alex, dude, it's been so fun. Thank you for hanging out. Let's cheers our, very similar beverages. There we go. 40 grams. Zero grams? Yeah, but no cows. Hey, that's how I keep my physique, and that's how you keep yours. Whatever works for you. I love it. Thanks, man. Thanks, Caleb. Huge thank you to Alex for hanging out with us and being on the channel. today. And let me know in the comments who else you want to see on this show. I'm personally keeping my fingers crossed for Stanley Tucci. A Boy Can Dream. Thanks for watching. We'll see you next time.