The Money Mondays - Strategies to SURVIVE and Thrive During Inflation 📈 E72

Episode Date: June 3, 2024

Inflation is the silent killer that everyone underestimates. That's why I will discuss the ups and downs of the real estate market, focusing on long-term strategies to thrive despite inflation and economic shifts. Discover why holding onto properties in major areas can be a winning move, the benefits for your taxes, and why selling might lead to regrets. Learn about cash-flowing businesses, low-risk investments, and navigating high-risk ventures. Like this episode? Watch more like it 👇 Watch ALL Full Episodes Here: https://www.youtube.com/playlist?list=PLs0D-M5aH-0IOUKtQPKts-VZfO55mfH6k --- The Money Mondays is a business podcast here to teach you how to make money, invest money, and donate money by showcasing some of the world's most successful people and how they do the same. Hosted by serial entrepreneur Dan Fleyshman, the youngest founder of a publicly traded company in history, this money podcast gives you an exclusive behind the scenes look at how the wealthiest celebrities, entrepreneurs, athletes and influencers make, invest and donate money. If you want to learn more business and investing while you work to improve your financial life, you're in the right place! Subscribe: https://www.youtube.com/@themoneymondays?sub_confirmation=1 Dan Fleyshman, The Money Mondays Learn more here: https://themoneymondays.com Watch all the podcast episodes: https://youtube.com/playlist?list=PLs0D-M5aH-0IOUKtQPKts-VZfO55mfH6k Let’s Connect... Website: https://themoneymondays.com Podcast: https://podcasts.apple.com/us/podcast/the-money-mondays/id1663564091 Twitter: https://twitter.com/themoneymondays LinkedIn: https://www.linkedin.com/company/the-money-mondays/about/ TikTok: https://tiktok.com/@themoneymondays FB: https://www.facebook.com/The-Money-Mondays-110233585203220/

You and your family need to get wealthy, not just rich. In order to survive later in life with inflation, you have to have millions of dollars of investments saved up so that you and your family can survive and thrive later in life. So I will die on this hill talking about this topic because you have to get rich and wealthy. Ladies and gentlemen, welcome to a special edition of the Money Mondays.

I am doing a solo episode. We are parked here at the wild jungle right next to zebras, camels, ostriches. Oh my, they're right outside. There's over 209 animals right out here at wild jungle. W Y L D. If you want to check it out on Instagram We are not open to the public but wild jungle is becoming a brand with toys Products pet vitamins all these different things for children and pets. Okay Why am I doing a solo episode? Because I want to talk to you guys about the speech that I do at live events. My speech is called 40, 40, 20.

And since the Money Mondays was literally crafted because I've been giving the same speech for years and different versions of it, I'm gonna walk you through a different version of 40, 40, 20. What is it? It's 40% low risk investing, where I wanna try to make between five and 9% for the year.

40% medium risk investing, where I wanna make between 10 to 30% for the year. 40% medium risk investing where I want to make between 10 to 30% for the year, and 20% high risk investing. I call this my shot at glory. If I get this right, I want 4x, 8x, 12x, 20x, something crazy to happen. And if I get it wrong or it takes a long time, I'm hoping that the medium risk and the low risk covers the high risk. Okay. So on the Money Mondays, we're going to keep these episodes to under 40 minutes. This one will be even less than that. The reason for it is, as I always mention,

the average workout is 45 minutes and the average commute to work is 45 minutes. So our episodes will always be around 40 minutes or less. This one will be even shorter. So I'm just gonna focus on this one topic for this episode. I could talk about this for hours because the 40-40-20 model is what I've been doing for years and years and years,

and I'll always do it for this main reason. I know I would get addicted to high-risk investing, but I can't just do high-risk investing because that can take a long time. Sometimes it doesn't work out. Sometimes it's huge. Sometimes things go great. Sometimes they don't, et cetera.

I don't only wanna do medium-risk investing. Some people get addicted to that range, 10 to 30% a year, it's a great, you know, great revenue. Can really compound into great wealth if you do it consistently. But you can't only do that because you need some shots of glory. You need some of those big high risk things sometimes in your life.

If you just put a little bit in. And you definitely can't do all low risk because boring. Not gonna just gonna do 5%, 7% a year when you're just barely fighting with inflation. Right now, inflation is 8% to 9% a year. 8% to 9% a year. So if you make 7% or 8%, you're just kind of breaking even

with the economy. And by the way, inflation is not a theory. It is reality. Do you guys remember when muffins were $3 and $4? Well, now they're $5. Remember when milk and bread was $3 and $4? Now it's $5. Remember when gas was $2 and $3? Now it's $5. That's not only 8 or 9%. That's even more increased just over the last few years. You used to buy a Ford for $50,000. Now it's $57,000. Your money spends 9% a year less than what it did. This is real life. So if you've

been working your butt off to save up $100,000, 2025, your $100,000 spends like it's 91,000. 2026, your $100,000 spends like it's 83,000. 2027 spends like it's 73,000. You see where I'm going? It's not a theory, it's not political, it's not a conspiracy, it's just math. Your dollars spend less. Remember when your parents grew up, they bought a house for 100,000? Now it's three, four, 500,000?

Remember when the gas was 99 cents? Like, do you just think about the things in your world when hamburgers were 29 cents, then they're 40 cents and a dollar and $ dollars, three dollars, four dollars, etc. Inflation is very, very, very real. It is not a theory, it is not a joke, and it's very important to you. Now, why am I so passionate about money? Why do I do the Money Mondays and why do I speak about 40-40-20 at so many hundreds of

events? Here's why. I want you to think about this very intently. Especially if you have children. If you have children, they are likely to live to over a hundred years old. Some of them might live to 105, 110, 120, 130, even more if they get some robotic arms or some crazy things that happen with technology over the course of time. But, outside of the technology part, they are growing up in a health-focused society. You and I, when you're listening to this podcast,

you're probably 25, 35, 45, 55, 65 years old. When you grew up, there wasn't an Equinox and a Whole Foods on every corner. They didn't have health food stores. No one was talking about mental health. There was no fitness apps. There was no first form supplements. You didn't have those type of things 20 years ago, 30 years ago. You had Jack in the Box, Burger King, McDonald's, and Taco Bell on every single quarter. Now, there are health food stores, there are whole health food sections, there's so many snack bars and beverages and drinks that are much more health

food conscious. Back in the days, did you want Coke, Pepsi or Sprite? Right? Nowadays there are so many beverages that are healthier for you, like BLK water with fulvic acid or like Rye's coffee. There's better for you brands with mushroom inside or there are just ingredients that didn't exist 15, 20, 30 years ago. No one was thinking about it. No one was talking about it. There wasn't healthy food companies like Icon Meals. Like Icon Meals can ship you food right this second and it's all healthy meal prep stuff. Like Icon meals wasn't here 20-30 years ago. You didn't have someone that would just ship you healthy meals. It didn't exist. And so I've been focusing very heavy on this for this purpose because your children are probably going to live

to over 100 years old. Why am I harping on this? Well, if they're growing up healthier, they're working out because they're more conscious about it They're doing yoga and breath work and things and nobody talked about 20 30 years ago They're doing ice cold plunges and saunas and sound baths and all these things That have now become cool for society and people are doing it at scale and it's becoming Very important to people to be health-focused and health-conscious Well, they're gonna live live longer lives. And if they do, God willing, they live to 107 years old, what happens if your child wants to retire at 70? Most people want to retire at 65 to 75 years old. So let's say they want to retire at 70 years old, right in the

middle. That means they need 37 years of money saved up if they don't want to work. Back in our days, our parents' average age to pass away was 77 years old and 73 years old. So men were 73, women at 77. It started to get closer, 75 to 77 later. Nowadays, it's 83 for men, 85.5 to be exact, for women. So if you retire at 70, you needed like 13 to 15 years nowadays. What if they live to 107 and need 37 years of money?

Let's break that down. Let's say they wanna just get by on five grand a month, which is gonna be hard to do, especially later in life because of inflation. Let get by on five grand a month, which is going to be hard to do, especially later in life because of inflation. Let's just say five grand a month. And let's not talk about anything medically related or any tragedies or any of their kids, just them five grand a month.

Well, let's do the math. $60,000 a year times 37 years is $2.3 million. You know that the average American right now has 1200 bucks saved up? That's a pretty big disparity, pretty big gap of 1200 bucks saved up and 2.3 million dollars. You see where I'm going? If your child lives to 107 and they don't save up 2.3 million dollars, they're not going to have 37 years of money, not counting inflation, not counting medical situations, not counting anything. Just getting by with 5 grand a month. What if they want 10 grand a month?

What if they want to live on 10 grand a month? What if they have children that they need money to help them with their college tuition and they need money for XYZ and they need money and they need 10 grand a month? Well, 120,000 times 37 is over 4 million dollars. Do you see where I'm going? We have to talk about money. This podcast has to happen. You know, right now we're number 34 in the country of all podcasts, not just like a certain category,

of all podcasts, we're number 34 right now. We stay at number one, number two in the entrepreneur category and we're always in the top five, typically number three in the business category. Because this topic is important, so I implore you, I ask you, it's very important to me, for you guys to share this podcast. Liking, commenting, subscribing is super, super important for us. If you noticed, I haven't run ads. We've been doing this for

well over a year now, a year and a half. I'm not running ads. We spend 70,000 a month to keep this podcast going ad free. So it's really important for me. Now, when you have these discussions about money, think about this topic. If your child lives to 107 and they need two or three million dollars saved up, four or five million dollars saved up that they want to have ten grand a month, what do you have to do? You have to have discussions about money with your friends, family, and followers now, today, and every day. It is an important topic because it's reality. There's nothing rude about talking about money. We have to remove that stigma from our minds. That phrase shouldn't even exist minds. That phrase shouldn't even

exist anymore. That concept shouldn't exist anymore. We have to have discussion about money. It is mandatory. We have to talk about it. Okay, so let's get back into it. 40-40-20. The importance of it is because you're gonna need to get not just rich, but wealthy to survive later in life. And some people think that's rude, or I can't believe that, you know, they have screw the rich and blah, blah, blah. And for some reason, they're trying to villainize being rich and wealthy.

That is actual insanity. Like it's clinically insane. When people talk crap about billionaires or rich people, why on earth would you be mad because someone owns 11 franchises of Chick-fil-A and got rich? Or they built up a landscaping company with 40 locations? Or they built up a tech company like Amazon? You use Amazon, how can you get mad about Jeff Bezos?

You're on Facebook right now listening to the podcast and you're mad about Mark Zuckerberg being a bazillionaire. Why on earth would you ever be mad at someone's success? Now, the goal and the important topic is you and your family need to get wealthy, not just rich. In order to survive later in life with inflation, you have to have millions of dollars of investments saved up so that you and your family can survive and thrive later in life. So I will die on this hill talking about this topic because you have to get rich and wealthy. Alright, so let me walk you through 40-40-20. On the low risk side, when you want to make between 5 and 9% a year, this is the boring investments. This needs to be low risk or no risk. What's fascinating is right this second

Household name banks that you probably bank with Wells Fargo Bank of America Chase, etc are offering 5.1 percent 4.6 percent 5.3 percent to lock up in CDs inside your own bank Is there a risk that Wells Fargo Bank of America or Chase goes bankrupt? I guess some tiny you know But let me just say this if one of those household name banks Implodes we got way more to worry about in our society than the ten grand you saved up in that account They're not just gonna implode with no notice. Let's just be clear about that. And so

You could lock up your own money inside your own bank and get five point one percent a year not just going to implode with no notice. Let's just be clear about that. And so you could lock up your own money inside your own bank and get 5.1% a year. That is crazy. Do you know what it was just a couple of years ago? Half a percent. If you got 1% you were crushing it. But after fees, you made nothing. But at 5.1% that's real money. Like real money. Especially if you start to save up 20 grand 50 grand 100 grand, etc As I talked through the math, it's all relative to you whether I say 10 grand or 10 million It's just math the percentages are the same your 5.1 percent are the same for 10 grand as they are for a million It's all relative to your situation

Okay The S&P 500 which you didn't think I was gonna say, is actually in the low risk category. Even though the stock market goes up and down, the top 500 companies, which is what the S&P 500 is, have averaged, brace yourselves, over the last 92 years, 11.1% a year. That is better than any of your investment advisors consistently over the course of time keep in mind over that 92 year period recessions

depressions wars Holocaust situations nightmares media everything that could happen happened and more we had the whole world shut down a few years ago like literally you can go to restaurants and and more, we had the whole world shut down a few years ago, like literally you couldn't go to restaurants. And our S&P 500 has withstood the test of time for 92 years and growing. And it continues to year after year. Are there roller coasters of the price points along the way?

Of course they are, but they're averaged out across the top 500 companies. Most of those companies you've never heard of. They're making 40 billion a year, making like little chips, like metal chips companies you've never heard of. They're making 40 billion a year making like little chips like metal chips that you've never heard of, semiconductors. They're making 21 billion dollars a year making plastic. You don't know what the heck I'm talking about and I don't know them either. There are a lot of companies out there that are just making billions of billions of dollars. You've got no idea about them and that's okay. They're just going to keep

fighting the good fight and then you hear about some that get famous like Nvidia, that's the one of the best performing stocks in history. You are dollar cost averaging. Now here in the middle section, there's three core topics. The stock market being one of them, real estate and cash flowing businesses. On the stock market side, there are 10 main stocks that I invest into over and over and over and over and over and I don't care about the price point at any given moment.

I do not dollar cost average on purpose. Here's why. There are a lot of people that can teach you about stock market. There's a lot of people that can teach you about trading. There's some really great people that are out there that are super, super good at it. There's guys like Timothy Sykes that you can actually buy their courses. I think he has got one that's $5,500 and one that's a couple hundred bucks. That they will teach you how to day trade.

I don't day trade. I'm glad he does and he's really good at teaching it. He's done tens of millions of dollars of teaching about day trading. I don't day trade and here's why. I have nothing against it. I don't have the time to and I'm not going to be as good as someone like Timothy or people that study. And so what I do is I buy the exact same stocks over and over and over of companies

that I believe will be here in five years, 10 years, 20 years, and 30 years, and 40 years. If you're listening to this podcast right now, I need you to do me a favor. Wherever you are, even if you're by yourself, raise your hand if you think that Apple will be here in five years. Okay. Hopefully you're raising your hand because you're a cuckoo bird if you didn't raise your hand. Do you think it'll be here in five years. Okay, now hopefully you're raising your hand, because you're a cuckoo bird if you didn't raise your hand. Do you think it'll be here in 10 years? In 15 years? In 20 years?

I know you do. And even if you're trying to like be slick about it or try to get... No, you do. And you're going to buy the iPhone. Even if you like Samsung. Someone in your circle is going to buy the iPhone. And because of that, that stock, why on earth would I sell my Apple stock? If I think that Apple will be here in five years and ten years, and year after year after

year they break records of financials, more revenue, more profits, more this, more that, they made a $3,800 pair of glasses and Had lines down the street when we're in a recession, right? So everyone says you couldn't buy these freaking 3800 or glasses that they just came out with People were going nuts for them sold out iPhone 15 iPhone 16 iPhone 17 year after year the people in that car that you're in right now Or the people that are in the gym next you you working out they're gonna buy iPhones and so are their friends and family. So why the hell would I ever sell my Apple stock? Why?

Raise your hand if you think that Walmart will be here in five years. Ten years? Fifteen years? They've got three or four thousand stores and they're gonna keep adding hundreds of stores a year and when the market is doing really Well, people shop at Walmart. We're in a recession people shop at Walmart doesn't matter what happens in the world people shop at Walmart Can the stock go up and down every month every day? Of course it can but over the course of time Walmart's gonna open more and more stores. I just want to own the Walmart stock It's not rocket science I just want to own the Walmart stock

It's not rocket science And I can keep going and you can kind of guess where I'm gonna go with it. Do you think that Google will be here? Here's an interesting one Google might get replaced with AI chat GPT those type of things Google owns that stuff, too Google ventures just put up a bazillion dollars into those type of companies and to the competitors of chat GPT also just in case and to the competitors that are doing AI just in case so no matter what happens Google Ventures has deployed tens of billions of dollars

of investment capital into these companies over the last few decades and so I want to own Google stock. Can it go up and down tonight? The price point, of course it can. Can it go crazy and drop next week? Sure. But over the course of time, I want to bet on Google being here year after year

after year. Do you think Elon Musk is crazy? Yes. But he's also the only human in history to have four Multi-billion dollar companies at the exact same damn time. I want to bet on that guy He's gonna figure it out and he's got the capital to do it whether he wants to buy Twitter for 40 billion dollars for fun or he wants to fix Tesla change the world or put SpaceX up in the like

Starlink the most amazing thing for Wi Wi-Fi which is changing our entire globe. It's insane how good Starlink is and how much better it's getting that you can use it Starlink in an RV motorhome like this. You can place it out in the mountains. People can have Wi-Fi. That will make him a multi multi multi multi billionaire no matter what happens to Tesla, Starlink, etc. Why? I believe in Tesla, year after year, is going to figure it out. They might at some point just become a battery company. If Tesla ever decided, hopefully Elon Musk is listening to this, if Tesla ever decided to make cell phone batteries that lasted longer, they would become a trillion dollar company.

So Elon Musk, if you wanna be a trillionaire and really take us to Mars, make better batteries for cell phones. They're the most used device on the planet that's never gonna slow down, that people carry with them 24 hours a day, they would rather have their cell phone than their wallet. They would rather have their cell phone than their wallet. They would rather have their cell phone than food and water.

Make a better battery, please, Mr. Elon Musk. Now, year after year, Tesla's stock has gone up. There have been tragic roller coasters of price. It doesn't matter, because every year they sell another million cars that are 40 grand, 50 grand, 60 grand, 70 grand, 80 grand. You can do the math. Tesla's worth more than like Ford, GM, etc. combined. That's insane. That's insane. However, it's not stopping. And so I won't own that. Raise your hand if you like Netflix. I do.

I don't even watch TV very much, but when I do, it's going to be on Netflix. Because it's very efficient, it's very beautiful, it's very fast, everything about it's great, and it's around 20 bucks a month. And you probably have Netflix for the last decade, and you don't have 20 bucks a month worth of Netflix stock. Do you know that Netflix is one of the best performing stocks in history and you don't have it. Remember when I was bringing up iPhones and I mentioned the iPhones $1,500, $1,200, $1,300?

You probably don't have $1,500, $1,200 or $1,300 of Apple stock. Let me give you a quick thing for you to just noodle on for a second. I don't even like to use the word noodle on, but it fits here. If every time the iPhone came out, iPhone one, two, three, four, et cetera, 800 bucks, 1,200 bucks, 1,100 bucks,

there's 15 of them. If every time the iPhone came out in that exact same day, you bought Apple stock for the same amount 800 bucks 1200 bucks, etc Does anybody know how much money you'd have an Apple stock for the last 15 iPhones? That's right over 1 million dollars And you're sitting there trying to like pick apart the things and I'm saying about my stock picks buy some Apple stock When people say this is not investment advice. Yes, it is buy some Apple stock

Is it gonna go up and down this month this year? No idea anybody that tells you they know what the price is gonna be is lying or delusional What I do know is they're gonna sell more iPhones every single year as long as we're alive Nothing's gonna to change about that except the new iteration that they're going to figure out. AI pops up, they'll figure it out. New technology makes it so your iPhone should just be implanted into your ear or your eyeball, they're going to be the one to figure it out. Whatever happens in society, they'll be the ones to figure it out. And so I want to buy Apple stock. All right. Let me digress away from the stock

market. I don't try to day trade. I just buy the same stocks, the same companies year after year after year. Some extra money comes in from a speaking gig. Great. Buy some stock. Some extra money comes in from XYZ. Sweet. Buy some stock. You're making money while you're working and something happens, you make an extra five grand, two grand, 200 grand, the math's irrelevant, you can buy some stock of the companies that you like. Think about the companies that you like, that you shop at, that you buy, that are in your world, why don't you buy a little bit of that stock over and over and over.

All right, the real estate side of this 10 to 30% is where a lot of you guys live. It's where a lot of people want to be a part of. There's multiple options in the real estate market. You could buy things to rent. You could buy things to flip. You could buy things to Airbnb and do some other fun, fancy things with, or you could buy and hold. You have decisions to make. Depends on the capital you have to work with, which one you're going to do. Depends on how much you want to allocate. Depends on your threshold of pain. Because sometimes flipping can get hard. It spends a lot of money to flip a house. And you don't know if you're going to sell it for how much.

Sometimes you get a rental property and then someone's renting it for two or three years and then it's vacant for three months, five months, etc. How much pain can you handle? Sometimes you get airbnbs and you're crushing it and then laws change. There are hard parts and great parts about the real estate market. You have to choose for yourself what type of things fits you. What I will tell you is it's fantastic for your taxes and it's fantastic if you don't ever sell it. If you can buy pieces of real estate in main areas, main cities and nearby, it's really hard for you to lose unless something tragic happens. And even then over the course of time, they're probably going to go back up. Kind of like the example I mentioned earlier, your parents' house that they bought for

100 grand is probably 300k, 400k, 500k, 600k, etc. And a lot of them made their wealth by selling that house and all of them would regret it. All of them. Because the house that they sold for 400k is probably 600, 700, 800, and one day is going to be a million. It just is. There is no more dirt. And we're in a society that's millions and millions and millions of units behind schedule to make more houses and make more apartments make more condos Because of supplies because of labor because construction companies a lot of them went bankrupt There's a whole different I can do a whole podcast about that

But what happened in the real estate market we were way behind schedule and nothing's gonna make us catch up. And so because of that Housing market stays strong and people want to buy and they want to rent and they want to stay in Airbnbs. And so if you can invest in real estate and you have the capital to do so, and you can buy things and just hold on to them, you will win long term. Even if prices go up and down along the way, over the course of time, if you buy properties in major cities or next to them, in major counties and next to them, like you were somewhere and

you're just buying in the middle of the woods, you're buying in real areas, you are going to win over the course of time. If you like to fix and flip, just keep in mind that I would prefer if you use an expert or studied before you went and did that. In any of the things I'm talking about, you got to study. You got to study the stocks that you want to buy, you got to study the real estate market, you got to study the things that I'm talking about, you gotta study and understand those things. I'm not a registered investment advisor, I'm a realist.

I really talk about these things that I really invest into for years. I will show you my stock portfolio, I will show you when I buy Bitcoin in 2014. I can show you the very first trades on my Coinbase account. I will show you these things because I do what's called build in public. I will never tell you to invest in something that I'm not in it with. I will never talk about things that I don't actually know and live because if I don't know it, I just will say I don't know about it or I'll get you an expert to be the guest on the show. When I'm talking about it, I only talk about the things that I live and breathe in. Okay, cash flowing businesses. What's interesting is we're in a time

that there are 3.2 million cash flowing businesses that are for sale in the year 2024. That is compelling. And most of them are by baby boomers and senior citizens and people that are wanting to retire. That provides a lot of opportunities for you to be able to buy those, acquire them, merge with them, consult for them, invest in them, etc. A lot of interesting deals come up when people want to sell their business.

The other concept is, what if you have a friend that has like seven gyms or seven salons or seven pizza, and they want to open up number eight. That is a medium to low risk investment. Now, can your friend's eighth gym fail, eighth pizza restaurant fail, eighth salon fail? Of course it could. Very less likely, because they've already opened up seven of them, and they've gone through the struggles, the pains, they figured things out,

they know the right hours, the right staff, the right accounting, the right processes, the right accounting, the right processes, the right vendors, they figured a lot of things out to open up location number eight. So that is a medium to low risk investment. If your friend is opening their first pizza restaurant, their first salon, their first gym, that's categorized way over here, high risk investment.

Now, does that mean you can't invest into your buddy's new gym or new pizza restaurant, new salon? Sure you can. She might be opening a salon, that's awesome, but that is a high-risk investment when it's her first one. Because she doesn't know the hours perfectly yet, she doesn't know all the vendors yet, she doesn't know all the things yet because she hasn't done it yet. No matter how many books you read, information is useful, but then you gotta go live it. Now, that same lady's

opening her seventh salon, eighth salon, etc. that becomes back here medium-risk or low-risk investing. And so I like cash flowing businesses. You guys have seen I invested heavily into Ever Bowl. Ever Bowl I invested back in we had like 13 or 14 locations. I end up buying 17 locations with me and a friend named Cole Hatter. The business now has 94 locations and Everbow opens a new location every 6 days. That is a cash-lowing business that does tens of millions of dollars amongst those 94 locations every year in cash-low. I like cash-lowing businesses so I've gone quite deep in Everbow. Retail side, I open up Cards and Coffee. We

have 9 retail stores. We've done over $30 million in sales in our first couple years, and I like retail stores, but I like low overhead retail stores. Cards and Coffee, actually you guys, by the way, you can watch the new TV show about Cards and Coffee on goingpublic.com. Go to goingpublic.com. It's only 75 minutes for all five episodes.

You'll see me on there battling with Floyd Mayweather and talking about Cards and Coffee and the sports card industry. You'll see me on there battling with Floyd Mayweather and talking about cars and coffee in the sports car industry. You'll see me get kidnapped by a Navy SEAL, which I did not like and I did not expect. It was very difficult, but I had to escape by the back of a moving vehicle and I was tied up and I had a bag over my head.

Very intense. I had to pass a lie detector test and I was the only one that passed by the way. So I was very proud about that part. But it's an interesting show. Go to goingpublic.com and you can see me battle and talk about the sports card industry at the same time. It's kind of like Shark Tank meets the Great American Race,

whatever you call it, it was a very intense show. So I say that because I like the sports card market and so I opened up all these stores, we've done a lot of revenue, and Cars and Coffee, I have a low overhead, so I keep the locations small and I keep it to three or four employees per store. Same thing with Everbowl. Locations are small, 400, 800, 600, 1200 square feet,

900 square feet, et cetera. Only needs a couple of employees at a time. And so I like retail, but I don't like big overhead. And so I like cash flow in businesses. You've heard me talk about them. I'll always talk about them because it's a really interesting category. When you find a proven operator,

would I have invested into Ever Bowl number one? Maybe but it would have been a very high risk thing. When Jeff Fenster opened up Ever Bowl number one, it was like, I think he said 280,000. It was really expensive, maybe even over 300,000. Now he opens them for like 120,000, 160,000, 140,000. It's always 120 to 160. So it's like half the amount that he spent on the first one because he learned about the vendors, he learned about the vendors,

he learned about construction, he learned general contractors, he learned where to get the supplies, he just learned how to get better and better and more efficient. And so I invested when there was 13 or 14 locations and I'm happy to pay a bit of a premium on the valuation being a safer investment investing later.

All right, I'm gonna wrap it up on that high risk investing side. It's called high risk investing because it's high risk So my fingers are crossed if you can't see me Maybe you can feel that I have my fingers crossed right this second if you're just listening to this on audio High risk investing is fun. It's exciting. It's torture. It's everything because Even when things go good, you're typically not getting any money back until a company has what's called a liquidity event. They go public, they get acquired, they do a merger, something big happens.

It's typically when you can get money back or make a bunch of money. Along the way, even if a business goes from 1 million to 4 million to 10 million bucks in sales in three years, you probably got zero, zero, and zero along the way because they need to reinvest that capital to keep scaling that business. You should want them to do that. You should not want them to give you back your 25 grand or your 100 grand or your 50 grand, whatever, along the way because if they use that money and they use it well and

they're getting a two or three or four, you know, 4X ROAS, which is a return on ad spend, you want them to do that as much as possible to keep growing that business and growing your valuation. I look at high risk investing as two main topics, angel investing and cryptocurrency. But I only focus on the main cryptocurrencies like Bitcoin and Ethereum. Now, Bitcoin is the number one performing investment asset

in the history of the world. Let me repeat, this is not a joke, this is not a line, this is the fact. Bitcoin is the number one performing investment asset in the history of the world. Fun fact, Monster Energy Drink is the number one performing stock in the history of the world. Monster Energy Drink.

So in Bitcoin and Ethereum, these are things that I believe we're gonna keep going up year after year forever. Can it have roller coasters? You've seen it, of course Bitcoin drops, it crashes all the time. But year after year over the last 14 years, it's actually only had one losing year.

That's a very compelling thing as an investor or a gambler to think about. That's a very compelling thing as an investor or a gambler to think about. Now, on the angel investing side, you're taking a risk. You're betting, let's call it 25 grand, 50 grand, 100 grand, whatever it is that you're putting in, into a company, into your buddy's clothing line, or their new, they make pillows, or their new tech app, or a supplement company, or cannabis, or whatever the thing is. Typically an angel investment will have a liquidity event on average five to seven years later.

It's a long time. Now when they hit it right, your 50 grand might become 500,000. But when they get it wrong and doesn't work out, you only lose the 50,000. Let me explain. When I say only lose 50,000. It's not that 50,000 is not a lot. When I say only lose the $50,000. It's not that $50,000 is not a lot of money, it's a huge amount of money. However, it's a one-to-one risk-loss ratio. You put a 50 grand, you can only ever lose that $50,000. But if you get it right and you pick a good company and it turns into $400,000, $500,000, $600,000, now you've got a

8x, 10x, 12x return on your capital. So one to one risk loss ratio. However, the upside is not infinite, but it's like that. It's that similar concept. It can go up a lot. There was a lady on that going public TV show actually named Cyan Bannister. She put in $50,000 into a little company called Uber. Her and the fund that did that investment through Jason Calacanis returned, I think

it was over $300 million on 50 grand. You can look up the exact amount, but it's around $300 million for around $50,000 into Uber. Now, that is obviously a historical story. That is not normal. And most of the time you put up your 50 grand, you're often gonna lose it. You can reduce your risk by doing these things.

Find a founder that you believe in, or a founding team, an executive team that you believe in. Two, it has to be a company, a product or service that people care about. How do you know they care? People vote with their wallets. If people are buying it for years at a time, that's something you might want to invest into because they've proven that

people care. Number three, is it scalable? I know that people care, but can you take it from 2 million to 20 million to 200 million, et cetera? Can it get big? Doesn't have to be huge like a grand slam, but can it get big? And then fourth, can they back up what they told you? That's where I bring in my CEO, my accountant, and my lawyer to rip it to shreds and figure out does this thing make sense? Are the things that they promised me, the CEO, the president, etc. Is it all true? Is it all backed up? Can I scale this thing? Is the paperwork correct? Are their taxes done right? Is their accounting done right? Etc. And if you do those things, you will lower your risk on angel investing. But if you get it right, you can have a really good return with a one-to-one risk loss ratio.

All right, guys. So that was the 40-40-20. I talk about it different ways. If I did another podcast right this second talking about 40-40-20, everything I just said would be different except with the exact same result, exact same meaning, exact same categories, exact same topics, exact same categories, exact same topics, right? I would talk about low risk investing.

I would talk about medium risk in the three main categories, real estate, cash flow and businesses, stock market. I would talk about high risk investing with angel investing and cryptocurrency. I would talk about the exact same topics, but I would mix in different companies, different stories, different reasons for the exact same thing of building a strategy. As you listen to this podcast today, you might be like, oh, I love high risk investing. I want to do more of that. You can change the numbers of 40, 40, 20, how you please. I do it to control myself because I know I would go all in over here on high risk investing because it's fun and it's exciting. But I can't do

that because the money gets locked up for a long time and you sometimes have liquidity events and you sometimes wait a long time. But I can't go all the way in on the boring stuff. I don't do that because the money gets locked up for a long time and you sometimes have liquidity events and you sometimes wait a long time. But I can't go all the way in on the boring stuff. I don't want to make 5%, 7% a year with all my capital. I want some of my capital to do that because that boring money does compound. After you listen to this podcast, tonight you should look up what's called a compound calculator. Put in your age, let's say you're 40 years old, and put in your retirement date, let's say 70 years old, so 30 years. Then you put

in an amount, let's call it $1,000 a month, $12,000 for the year. And then put in a reasonable percentage that you think you can make back, let's call it 9% a year. If you do that, and you put up a compound calculator, I think you can do AvengersCalculator.com, try that. Go to AvengersCalculator.com calculator calm it's free I'm just saying it as a fun place to go to see if that one works type in your age 40 years old type in retirement eight seventy years old so thirty years type in twelve thousand dollars for the year and that nine percent for the year that should return I'm guessing was like five hundred thousand dollars to a million

dollars I think we're gonna have Trevor look it up right now no you're not gonna a year. That should return, I'm guessing, what is it, like $500,000 to $1,000,000? I think we're going to have Trevor look it up right now. No, you're not going to look it up right now? But if you do it for even a couple years longer, it compounds even more to come around $1,000,000 to $2,000,000 just from you investing $12,000,000 a year. What's interesting is instead of if you do $12,000,000 a year instead of in one payment, if you actually do $1,000 a month, it rapidly compounds even faster. It's really weird, it's just math. Look up a compound calculator,

find an investment that you like, something that's steady that can make you 7%, 8%, 9% for the year, contribute capital to that over and over and over and you will retire with one million to two million dollars with just 12 grand a year. But what if you increase it to 14,000? And then later you made some more money, made it 16 or 18,000 and there were 20,000 grand a year. But what if you increase it to 14,000? And then later you made some more money, made it 16 or 18,000,

and there were 20,000 for the year. The numbers get crazier and crazier because math and time compounds. Now imagine, before we go, if you did this for your five-year-old son and your eight-year-old daughter, and you just every single year, every single month, chipped in a couple hundred bucks

Maybe not a thousand bucks a month or twelve grand for the year But a couple hundred bucks whatever you could afford over and over and over Well little Johnny and little Suzy when they get to college or they get older to want to get married or they want to buy a house twenty thirty years from now, holy smokes You've got five hundred thousand a million dollars or more from now, holy smokes. You've got 500,000, a million dollars or more saved up for them just by chipping in a couple hundred bucks a month, 500 bucks a month, thousand bucks a month, whatever you can afford. So look up compound calculators. Make sure to check out the money mondays.com. We go live every single Monday at 4 p.m. PST, where I go on there personally

and I do live teaching on Zoom. The money mondays.com, it's 200 bucks a month. All that profit goes to the wild jungle. So if you wanna go in there and chip in 200 bucks a month, all that money goes right outside to feed zebras and camels and ostriches and take care of 200 animals. But during those Zoom calls, we talk about money bluntly the way I did today. We do live Q&A sessions where I'll answer live questions

and I'll bring on other CEOs, other investors, other friends to come on there and host as well so you can learn from other people, not just me all the time. But I appreciate you guys checking out themoneymondays.com. I appreciate you guys sharing, commenting, liking, subscribing, and I hope, I hope that you have more discussions about money with your friends, family, and followers. We will see you guys next Monday.