The Diary Of A CEO with Steven Bartlett - Moment 173: The SIMPLE Way People Make MONEY Without Working Harder!: The Money Making Expert
Episode Date: August 2, 2024In this moment, award-winning serial entrepreneur Daniel Priestley discusses effective strategies for accumulating assets to build wealth. According to Daniel, it is essential to create a diverse port...folio of assets, such as a strong personal brand or a vibrant company culture, because income naturally follows assets. Daniel also discusses the importance of investing your disposable income in personal development, such as taking courses to enhance essential skills, as well as in your personal relationships. One of the ways that you can strengthen your connections is by hosting dinner parties or taking successful mentors out for lunch. By investing in your relationships, you are not just learning new skills from a mentor, but you are also opening doors to potential income opportunities in the future. Listen to the full episode here - Spotify- https://g2ul0.app.link/npzlzOSpILb Apple - https://g2ul0.app.link/Ph1YlcXpILb Watch the Episodes On Youtube - https://www.youtube.com/c/%20TheDiaryOfACEO/videos Daniel: https://danielpriestley.com/
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Quick one, just wanted to say a big thank you to three people very quickly.
First people I want to say thank you to is all of you that listen to the show.
Never in my wildest dreams is all I can say.
Never in my wildest dreams did I think I'd start a podcast in my kitchen
and that it would expand all over the world as it has done.
And we've now opened our first studio in America,
thanks to my very helpful team led by Jack on the production side of things.
So thank you to Jack and the team for building out the new American studio.
And thirdly to Amazon Music who, when they heard that we were expanding to the United
States and I'd be recording a lot more over in the States, they put a massive billboard
in Times Square for the show. So thank you so much, Amazon Music. Thank you to our team. And
thank you to all of you that listened to this show. Let's continue. Let's talk about money.
Let's talk about it. We're in a cost of living crisis in the uk and many
countries around the world are either in or on the brink of recession so one of the most popular
questions we've had at the diary of a ceo in the last three to six months is about money people's
concern about their own money spending finance and saving If I'm someone out there now that has, I don't know, a hundred dollars or a hundred pounds worth of disposable income every month,
or if I have a thousand or ten thousand pounds, what should I be thinking about as it relates to
creating more money and making myself financially free?
The first thing is you just want to earn more. People massively settle for how much they could earn. So the first place
to, I think, to invest is in yourself. But here's the first principle. The first principle is income
follows assets. Income follows assets means that the more assets you have, the more income you'll
earn. If I want rental income first, I need a house. If I want dividend income, I need shares. If I want to be paid as a brand ambassador first, I need a brand. So essentially, the more we can
accumulate assets, the more easy and effortless the money flows. So we have to figure out, well,
what assets could you accumulate and what assets could you formalize and own? I wrote a book called
24 Assets and I listed out all the different digital assets that are new economy assets that people could have. Things like brand
and positioning, things like databases, things like company culture is an asset now. So I talk
about how do you formalize those things? If someone's just starting out and they've got 100
a month, to be perfectly honest, trying to invest 100 a month or any of that, it's not going to do
anything. It's not going to change your life. But if you put that into your own skills and your own
development, let's say you don't have negotiation skills. Well, there are courses that you can take
for $100 that give you negotiation skills. Let's say you don't know how to close sales.
You can take a course on how to make sales. Let's say you don't feel confident public speaking,
you could do a public speaking course. So there are things that allow you to gain your skills.
The other thing too is money is relationships.
So if you don't have a lot of money,
you typically don't have a lot of relationships.
You might have a limited number of relationships
or a limited number of relationships
with people who have a flow of money.
When you have a high degree of relationships
with people who've got money flowing,
it's very effortless for that to flow to and from you as well.
So you might have to invest in relationships.
When I arrived in the UK, I knew that one of the places that I would meet interesting
people would be private banks.
So I didn't qualify for private bank, but I went into a private bank and I said, I'm
going to be launching a business and of course it's going to be great and successful.
I want to bank with a private bank. Do you have an entrepreneur's program? Oh yeah, we did. And they start selling me, joining the entrepreneur's program. Now it
cost me 600 pounds to open an account with that private bank, but they immediately invited me to
dinners and they invited me to networkings and all these sorts of things in the private bank.
One of the things that I've recommended a lot of people do is host dining, dinner parties and reach out to people who you
don't know. Here's a silly story. I was just in Dubai and I know someone who has a hundred foot
yacht. So I said, Jeremy, can I borrow your yacht for the evening? I'm going to be putting 15 really
influential people for a dinner party.
We're going to have burgers on the boat. And he said, oh, great, can I come? And I said,
of course you can come. It's your boat, right? So he said, great, that'll be exciting. So he
basically said, you can host this party on my 100-foot boat. So I reached out to all the people
who I didn't know and I said, hey, we're putting together burgers on the boat. Would you like to
come along and have some burgers with interesting people?
And then they came along and I made the investment into relationship. Now, the funny thing is a lot
of people say, oh, but you know someone with a hundred foot yacht. Funny thing is I think plenty
of people who have a boat, especially in Dubai, it sits empty most of the time. You could reach
out to 30 people and say, we're going to do it on someone's boat. Would you like it to be your boat, with or without your energy?
So making investments into relationships is a really powerful thing.
For $100 a month, personally, what would I do with $100 a month?
Take people out to dinner.
That would be my number one investment.
I'd probably be taking people out to dinner.
Why?
The investment into the relationship.
So I would be inviting the most interesting people
I could possibly invite. If I had the ability for $100 a month, I guess that's one dinner.
So I would reach out to someone interesting and say, I've seen your story. I've seen what you're
interested in. Can I take you out for lunch? Can I take you out for dinner? It's my shout. I'd love
to get to know you a little bit better. Obviously, don't do that with someone who's famous. You get
100 of those a day. I get plenty of those a day.
Reach out to someone who's not famous, but who's accomplished, who's successful, who's a mentor-esque
type person, not necessarily a superstar, but someone who's a few steps ahead. Take those people
out to lunch, take them out to dinner. Would you say in that message that, you know, you talk about
calls, I talk about emails. What would someone have to say to you considering where you are in your life now with all the inquiries you get for you to actually
go for a coffee with them um so bear in mind everyone's going to email you and say this yeah
yeah well it happened today actually someone said um Daniel, I noticed in the background of one
of your photos that you have an amazing Fender Stratocaster. I teach people how to play guitar.
I would love the opportunity to do a guitar lesson with you and help you to shred on that guitar.
And it was really nice. He had watched my podcasts in the past. He had noticed the guitar. He reached
out with something that was valuable for me.
And he said, I'd love to have a chat with you and teach you how to play some guitar. And
obviously I'll have a chat with him while we do that. But that was a really, it was a very sense,
it was very, it felt like a good connection. I also had a look at his profile and he looked
like a really lovely person, you know, who's getting on with doing stuff. There's a bit of
with or without you energy as well in terms of you know i can see this person's up to
stuff so i look at that and i go he did some research on you he offered you value in an area
where you were potentially seeking or looking for the value yep oh that's definitely true if you've
seen me play guitar but that's that's like the core component and i feel the same way that i i try and figure out why sometimes i reply to these cold outreach
messages but 99.9 of the time i don't and it tends to be the case that the person will say
they'll show that they've done some kind of research on me which is good for your ego like
everyone has an ego you want to feel like someone actually cares and then they'll offer me something in
return for by the way do you know i did this to you i don't even know if you remember you and i
were both speakers at a conference right and we were in the elevator and i'd prepared for you a
really nice leather um briefcase and it had your i created created the happy, sexy millionaire thing.
And we gave all the speakers one of those.
You weren't that special.
We had some for all the speakers.
But anyway, it was interesting because I actually have done that with you and we never ended up following up with you and you never followed up with us.
But here's the thing.
I want to share that.
No, I want to share that because sometimes it doesn't work.
Sometimes you have to send out, like when I sent out 3,000 cold DMs to launch a business,
I didn't expect 3,000 people to respond.
I expected 30 or 40 people to come back to me.
When I gave that to you, do you remember it?
I remember getting a briefcase,
and I do quite a lot of public speaking these days.
We only had like a two-minute interaction.
And I said, hey, this is a little gift for you.
Inside, we've created something for you.
Have a look.
Was it something I had to scan? Probably probably was there something scannable in there yeah we'd built you a little landing page campaign yes i remember yeah and i remember getting
in the car and saying to my team oh this is cool yeah and then of course it gets past the team and
they're like yeah yeah fair enough yeah put that on the pile of cool things um so the point is is
i'm saying that to say these things you don't want to get hung up on
the idea that one person's like in that same event, we gave that same thing to another really
well-known person. They've gone with it and they're like, um, you know, millions of followers
and they're one of our clients now. So we have with or without you energy, which is when, when
my team do this, we pick 30 or 40 people who'd make amazing connections and contacts
in our VIP outreach team and then we reach out to them
and we expect maybe two or three of them to get back to us.
So it's that idea of, you know, don't, like if someone messages you
and you don't message back, it's not the end of the world.
There are other people you can message and there's a,
and look what happens.
There you go.
It comes around again. It always comes around again it's if it's meant to happen it'll happen
so what about people you know so many members of my team speak to me and ask me about investing
they might have tens of thousands to invest or whatever but i'm curious about your personal
investment thesis with a capital that you have spell do you do with it to create more money?
So... What does your portfolio look like?
It's extremely boring. I just stick any available capital into S&P 500.
What's the S&P 500 for anyone that doesn't know?
Yeah, the top 500 stocks in the US. So essentially, any government that inflates
its currency anywhere in the world, that money will hit the economy and it will eventually make its way back to the top 500 companies in the US through spending,
or that capital will end up being put into the S&P 500, which inflates it. So one way or another,
it's going back to the top 500 companies in the US. So it's almost impossible to beat the S&P 500.
I hate investing. It's not my thing.
I like expansive business creation. I'm an optimist. Great investors are often pessimists.
They're very good at thinking what could go wrong and analyzing risk. I hate that shit.
So for me personally, I want to, as much as possible, expand the portfolio of businesses
that I think should exist in the world. And I've always made my money by just saying I romantically like the idea of this business existing, and I'm going to pour my
energy into it, and it's going to become worth millions. Rather than thinking about where I want
to invest money, I want to create something that's investable for other people to put money into,
because that's how you really make money. So the exciting thing is not placing my own chips. The
exciting thing is creating something where others want to place chips into that.