Early Retirement Expert: A House Vs Stocks... (Here Is The Truth)

If you don't get in the game of home. ownership, and you rent in your 20s, and. you rent in your 30s, you're going to. turn around in your 40s and having not. built any net worth. And in fact, homeowners in America are worth 40 times. more than renters. And I'm talking about. ordinary Americans. >> But that doesn't mean that buying a home. made them rich, right? >> It actually does, and I'm going to go. through that. >> But am I not better off renting and. investing [music] in the stock market? >> I want to bust this myth cuz I have. spent the last 33 years of my life.

helping millions of people with ordinary. incomes become financially free. [music]. Including 9 years as a financial advisor. at Morgan Stanley, and I got to see. firsthand how everyone who came into my. office with an ordinary income built. wealth. And there's a formula to getting. rich, but there's also a system to how. you put your financial life on autopilot. in less than 10 minutes. And it doesn't. require discipline, budget, and you. don't have to make a lot of money to get. started. But unless your financial plan. is automatic, it will fail. But more. importantly, I believe the next 10 years.

will be the greatest opportunity to. build wealth in our lifetime. And yet, seven out of 10 people right now are. living paycheck to paycheck. More than. 50% of Americans don't have savings, and. most people don't know where their money. goes. And in fact, when we ask people. how much money would it take to totally. change your life, they say $10,000. Now, how much money do you need to spend a. day to blow $10,000 a year? $27.40. a day. If you invested that a day for 40. years, you'd have over 4,424,000. dollars. That would be life-changing. >> But just before we get into all of the.

specifics and the strategies, do you. have any specific advice to people that. are currently struggling with debt? >> Absolutely. There's a very simple. formula to getting out of debt called. Debt Avalanche. I'd tell you to. >> Listen, my my team gave me a script that. they asked me to read, but I'm just. going to ask you, um, in the nicest way. I possibly can. Thank you first and foremost for. choosing to subscribe to this channel. It is, um, it's been one of the most. incredible, crazy years of my life. I. never could have imagined. I had so many. dreams in my life, but this was not one. of them. And the very fact that these. conversations have resonated with you.

and you've given me so much feedback is. something I will always be appreciative. of. And I will always carry away a sort. of burden of. responsibility to pay you back. And the. favor I would like to ask from you today. is to subscribe to the channel. If you. would be so obliged, it's completely. free to do that. Roughly about 47% of. you that listen to this channel. frequently currently don't subscribe to. the channel. So, if you're one of those. people, please come and join us. Hit the. subscribe button. It's the single free. thing you can do to make this channel. better. And every subscriber sort of. pays into this show and allows us to do. things bigger and better and to push.

ourselves even more. And I will not let. you down if you hit the subscribe. button, I promise you. And if I do, please do unsubscribe, but I promise I. won't. Thank you. >> [music]. [music]. >> David, what has your mission been for the last. three decades? >> I have spent the last 30 years of my. life helping ordinary people, people with ordinary incomes, become financially free.

And the last 20 years I've spent helping. people become automatic millionaires. So, I love to teach anyone at any income. level, minimum wage, living paycheck to. paycheck, you might be in debt, you. might be struggling. I've taught millions of people how they. can improve their life financially. That's what I've been dedicated to. And. I've spent 33 years total in the. financial service industry. >> And is this conversation just for people. that are in their 20s or is it. applicable to everybody at every age? >> It's applicable to everybody at every.

age because whatever your age is, you. know, it's look, Stephen, so many people. are living paycheck to paycheck right. now. In this country, what's happening right. now is that. seven out of 10 people are being left. behind financially. Seven out of 10. people right now are living paycheck to. paycheck. When you go into looking at finances in. America today, half of Americans can't get their hands. on a thousand dollars in case of. emergency purposes. And my biggest fear, why I updated this. book, and why I decided to come back out. one more time and do another financial.

literacy campaign, is I'm afraid people. are being left behind. I think with AR right now, the next 10. years are going to be the greatest. opportunity to build wealth in our. lifetime. That's the good news. The bad news is a. lot of people are being left behind. My. goal today next hour is very simple. I. want to give you the system on how to. become an automatic millionaire at any. age level, at any income level. But what. I'm going to teach you is how to put. your financial life on autopilot in less. than 10 minutes.

Because when your financial life is. automatic, your habits work. automatically. And an automatic financial life. doesn't require discipline, doesn't. require a budget, and you don't have to. make a lot of money to get started. >> Why should people be taking advice from. you on this subject matter? What's what. have you done in those 33 years? >> I've been doing this my entire life, right? So if you go all the way back, I. started investing at the age of seven. And how that happened is I had a.

grandmother, amazing grandmother, her. name is Grandma Rose. At 30, she made a decision that changed. the whole destiny of our family. And the. decision she made was she won't be poor. anymore. And at 30 on a very cold day, on her birthday, she turned to my. grandfather and she said, "We don't have. any money. We're living paycheck to. paycheck, and I don't want to retire. here. I want to go to California. I want. to be where it's warm.". And my grandfather said, "Well, what do. you want to do about it?" And she's. like, "We need to change what we're. doing or nothing will change.".

And so my grandmother started to saving. 50 cents a week out of her paycheck. So. 50 cents each, cuz they were like middle. class people, right? Didn't have a. college education. My grandfather worked. in a plant. My grandmother worked in. retail. But she started to saving small amounts. of money. And over her lifetime, she. became an investor and she became a. self-made millionaire. My first book, which you have sitting. over here, was a book called Smart Women. Finish Rich. It was the lessons that my. grandmother taught me.

So, at 7, my grandmother took me to. McDonald's and she taught me a lesson. that would change my life. She said, "David, you're sitting here. eating McDonald's and cheeseburgers and. your french fries and your milkshake.". She said, "I'm going to teach you today. how to be rich for real. You like to. play Monopoly? Here's my lesson today." She said, "There's three types of people. Those like you who are here eating right. now, you're what's called a consumer. She said, "The people over there who. have been working, they're called. employees. And they've been working for minimum.

wage. And that's a very hard way to live." She. said, "They make eight At the time, they. made 85 cents an hour. And she said, "The third type of person. is the person who owns this place. They're called an investor.". And she said, "Today, I'm going to teach. you how to buy stock in McDonald's. So, that when you come to McDonald's, you'll. make money from everybody who's here. When your friends come to McDonald's, you'll make money from them. And you'll be an owner of McDonald's.". And she took me down to a brokerage. firm, helped me buy my first share of.

stock in McDonald's. That moment changed my life because what. she made me realize is like everything. that we do, I'm 7 years old, everything. that we do, there's an opportunity to be an investor. and own that. So, like at 9 years old, I'm at Disney. I'm like, "Hey, Mickey. Mouse, are you public?". So, I was like a not a normal kid in. that way because I started investing at. a young age. But, then I made a lot of mistakes. Then. I went to college. Then I got myself in. credit card debt.

Then I believed all the myths that young. people often believe. I believed. I couldn't really invest a lot until I. made a lot of money. So, my early 20s, I was making money, but spending. everything. So, I was went from making. nothing to making $50,000 a year, and I'm still broke. I'm like, "Well, it's not enough money.". So, I went to $75,000 a year. Still broke. Spending more. Then I got. to $100,000 a year income. A lot of. money, right? In my 20s, oh my god, I'm.

rich. No, I was still spending more than. I was making. At that point, I was a. financial advisor. And all. >> your job? >> That was my job. I was working at Morgan. Stanley, helping people plan for. retirement, teaching retirement. seminars. And I met this ordinary couple. that came into my office at the age of. 52, Jim and Sue McIntyre. They had an ordinary job. That year they. had made a little over $53,000. Their average income over their lifetime.

was $40,000. And at 52, Jim. put out all the statements on the table. in front of me. I sat there and added them up, and they. had a net worth of $1.8 million. And I sat back at a table just like this. and said, "How did you do this?". And they had just been in my class for 4. weeks. Like, "David, we did a lot of. what you talked about, but we didn't. have a budget, cuz budgets don't work.". And they talked about why budgeting. didn't work for them. They said, "We put. everything on autopilot. We saved money.

automatically for everything.". And that was the moment that changed my. life. I realized [snorts]. that day, as somebody who was living paycheck to. paycheck with a high income, these people had half the income that I. did, and they were able to retire at 52. I was in my mid-20s, and I realized that. if I didn't start saving and investing, I didn't change, nothing was going to. change. And I would never have the. financial freedom that they had. And so,

I went home that day, and I changed everything in my life. Now, I had a lot of bad habits, so I had. a lot of things that needed to be. changed. >> You were the senior vice president at. Morgan Stanley when you stepped down, and you. soon after wrote this book called Smart. Women Finish Rich. It begs the question, what are the differences that you saw. through your process of financial. education that women face versus men? >> I started I was in business with my. father. And we had a lot of older.

clients. And I would sit in on meetings. one after another with widows. So, in. the first month of my career, I sat in three meetings with three. widows where the husband had dropped. dead suddenly. And my dad at the time. was teaching these women how to read the. brokerage statements, how to write. checks, and how to know if they would. have enough money. And I thought, this is crazy. I said to my dad after. the third appointment, "Dad, what do you. What's going on here?" And he's like, "What do you mean?" I go, "Well, you're. teaching these women when their husband.

has just died how to handle their. finances." And he said, "David, not all women are like your grandmother. Your grandmother was a rarity.". And I said, "Dad, that's crazy. I'm. going to go out and teach a class for. women and money.". And when I started teaching a class for. women and money, here's what I learned. Here are the things that make women. different than men when it comes to. money. Women, first of all, live longer than. men. Which [clears throat] means they. need more money than men do. The average. age of widowhood in America when I wrote. that book originally was 57, Stephen.

Now, it's 59. Okay, you do all these shows on. longevity. It seems like everybody's. living forever. They're not. Okay, the. average age of widowhood in America is. 59 years old. >> When you say widowhood, you mean the age. in which a woman becomes a widow? >> Exactly. They're married and they lose. their husband. >> Okay. >> Okay, so so women are often wiped out. when that happens financially. The. second thing is that women are hurt more. than men when it comes to divorce. The third thing that affects women is. that they work fewer years. I'm like,

these are just the this the the. statistical realities. Women work fewer. years than men because they have. children. So, that's an average of. somewhere between 7 to 11 years less, and that's less money going into Social. Security, retirement accounts, and it. affects their earnings. And often they. earn less. So, what I have taught for third nearly. 30 years now is as a woman, I don't care. what your situation is. I don't care if. you're an entrepreneur, I don't care if. you're a stay-at-home mother, I don't. care if you're married to local bank. president, I don't care if you're.

married, single, widowed, divorced. As a. woman, you have to be in charge of your. finances. Period. Drop the mic. End of discussion. You can't delegate. your financial well-being to anyone. else. You have to be in charge. Now, I will also tell you, Stephen, that. women make better investors than men. They they make better investors than men. because often women don't trade like men. do. And they are they do more research. before they invest, and their.

performance is better. They're way. better at long-term investing than men. are. >> I had some stats [clears throat] once. upon a time that men are. the majority of the gambling addicts. >> Well, I'm sure they're the majority of. the gambling addicts. And also, when you. look at trading, cuz trading's become a. very big thing, but trading's always. been a thing. >> Trading meaning. >> Trading like trading stocks, buying and. selling stocks. Now it's buying and. selling cryptocurrency, buying and doing. selling options. All these things are. primarily men doing it, and they don't. make money cuz the bulk of people who.

trade lose money day in, day out, and. year out. I teach a philosophy, which is. this: Your money and your investments. should be boring. Your life should be interesting, your. investments should be boring. If. someone's coming to a cocktail party. talking about their investments, and it's exciting, something's wrong. with it. >> Why? >> Because sexy is how you go broke when it. comes to money. Boring is beautiful when it becomes when.

it's about your wealth. So, >> [snorts]. >> even driving over here, my son was just. like, "Dad, why aren't you trading Tesla. stock?" I'm like, "You know why I'm not. trading Tesla stock? Because you can't. make money trading. You got to figure. out when to buy, when to sell.". I want my kids investing in index funds. I have my clients investing in index. funds. Boring is beautiful when it comes to. money. >> Before we get into the real specifics. and the top practical strategies and um. we think about a bunch of the sort of. things you said about debt and credit. cards and saving and getting out of debt.

and how to become wealthy and an. automatic millionaire. Is there anything. we should discuss as it relates to the. broader context of what's going on in. the world, whether it's wealth. inequality, whether it's the amount of. people that are living paycheck to. paycheck? What it What I'm trying to get. a picture on what the the state of. financial wealth looks like in the. Western world? >> Yeah, well, so let's talk, you know, when people talk about economies, here's. here's the economy that matters, in my. opinion, your economy. Meaning the person that's listening, the. economy that you're in control of is. yours. You're not in control over what's.

going to happen with interest rates, what's going to happen with geopolitical. things, what's going to happen with AI. The only economy that you can control is. yours. Now, here's the question. Are you working? Most cases, the answer's yes. The average person will work 90,000. hours over their lifetime. So, if you. are a dual income household, you're. going to work somewhere between 90 to. 200,000 hours, the two of you,

over your lifetime. You're going to actually make millions. of dollars over your lifetime. The question is, with your own economy, are you going to keep any of the money? >> [snorts]. >> And the sad thing for many people is. that they're not. I I say most people have what I call a. no plan plan. Money comes in, money goes out. And they say, "Well, I. don't know where the money all went.". And I go, "That's called the no plan. plan." A person who's an automatic. millionaire, the moment money comes in,

they have a plan for exactly where it's. going to go. And that starts with paying. themselves first. Automatically. >> A lot of people listen to this and if I. go back if I go back just over 10 years. in my life, I would have been sat. listening to this conversation in 7,000. pounds of debt. And I would have thought God like. becoming a millionaire that's a that's a. million miles away. No pun intended. I I. to be a millionaire I'm going to have to. earn so much more money. And at the time. I was working in call centers. It would it would have just felt so far.

away. And I say you know people are. struggling to feed their children let. alone become a millionaire. Is it far away for the average person? >> It's far away if you don't know the. strategy. There's a strategy to getting. out of debt. There's a strategy building. wealth. There's a system. >> How much of it is just earning more. money? Because when I have these. conversations on my show, I think the. surprisingly untouched territory is we. don't teach people how to become more. valuable so that they can earn more.

money. A lot of it's about like index. funds or savings whatever. But how much. of it is just like. I need to get. higher valued skills in the market. >> We know for a fact that making more. money doesn't make you rich. So so. people can go as I told you earlier like. from $100,000 they can go from 50,000 to. 100,000 and still be broke. They can go. from 100,000 to 200,000 a year and still. be broke. They can go from 200,000 to. 300,000 and still be broke. In the US, when you take households that. make $150,000.

a year, one out of three of them are. still broke. When you peel back the curtain and you. ask, "Why is that?" Well, we know things. cost more. But we also know there's. massive lifestyle creep, right? You get. you get around other people who are. making more money and then you spend. money. And the reality is these phones are. designed to get you to spend everything. Right? Today with the algorithms, there's better technology today than. there's ever been to get you to spend. more money. And nobody wants you to spend money. once, they want you to spend money for a.

lifetime. Right? So, lifetime value of a. customer. So, there's a battle for our. income. And everyone wants a piece of it. It. starts with the government. Like, you go. to work, and you go to work at 9:00, and. you have to work from 9:00 to 12:00 for. taxes. Now, this is an important lesson, actually. The government doesn't ask you. to budget to pay taxes. They take your taxes from you. automatically. They take social security.

from you automatically. They're They. take the money from you automatically. because they know you won't have. anything to give if they don't take it. from you. Then people work from 12:00 to about. 3:00 for housing and food. And then from. 3:00 to 5:00 for all the rest of all the. rest of things. The people who build wealth in America, and really all over the world, they do. something different. They keep the first. hour a day of their income. >> What do you mean by that? >> So, what that means is whatever you. earn,

you could be making minimum wage. You. could be making $20 an hour, $30 an. hour, $40 an hour. Whatever you earn, the first hour a day of your income has. to go to you. You're the first person who gets paid. >> And you mean you have to save it, invest. it? >> You have to invest it. So, how do you. invest the first hour of your day. without paying taxes? The answer is you pay yourself first. using a 401k plan. So, if you have a job. with a retirement account, 401k plan,

you sign up and you use that plan. Now, I can't just stop right there, right? Because cuz it sounds so simple. Like, okay, I'll use my plan. No, you have to. know the formula to using your plan to. be rich. We know after 40 years now. exactly what you need to do if you want. to be a millionaire. I can tell you how. to become a millionaire starting in your. 20s so that you're done by the time. you're in your mid-50s. You save a little 1/8 of your income is. 12 and 1/2% of your gross revenue. I went on online today to look at what's.

the latest statistics with 401k. millionaires. The new stats that just came out from. Fidelity. There are 654,000 [snorts]. people in Fidelity 401k plans that are. now millionaires. >> What is a 401k? >> Okay. >> Because you know, we've got a lot of. global listeners. Yeah, yeah. There's. different types of 401k in every. country. >> So, in the US a 401k plan is a. retirement account. It is a retirement. account that the company has set up, right? And it allows you to put money. away tax-deductible. We call it pre-tax.

In most countries you have a deductible. retirement account. But it depends on. the country, too, right? Like in Canada, it's a different type of plan than it is. in Australia, than it is in Italy, than. it is here in the UK. Almost every country though has some. form of retirement account and has the. ability to put money away automatically. Here's the problem. And I'm I'll use the US specifically cuz. it's where I do most of my work. In the.

US, those who have a 401k plan, the ones that are millionaires, what. they did, here's the formula, the exact. formula, they saved 14% of their gross. income. And their employer had a small match on. top of that. And then how they invested the money is. key because it's not enough to just put. money in these 401k plans, you have to. be invested for growth. And growth means. stocks, right? So, you have to have and. and the actual specific allocation in.

these 401k millionaires I just talked. about was about 70% stock and 30% bonds. Okay, now what are people doing that. aren't achieving this? Well, the average. American saving maybe three or four. percent, maybe five percent. if they have a 401k plan. People who. don't have 401k plans, in many cases, aren't even doing this. They can, they. can open up an IRA account, but in most. cases they're not doing that. So, the. whole secret is. not budgeting,

not using discipline, having the money. move right from your paycheck. Paycheck gets deposited automatically, and then it moves, the day it hits your. bank account, automatically first for. retirement. Then later we'll talk about. building a security account, building a. dream account. The key is that the money moves. automatically. So, in the United States now, there's, by the way, 24 million millionaires now. So, we've seen an increase of 8 million.

millionaires to 24 million millionaires. in the US in just 20 years. How did they do that? There's two primary escalators to. wealth. That is stocks. and real estate. And if you're not in. stocks and you're not in real estate, you are being left behind. >> When you say real estate, does that mean. having a mortgage and have owning a. home? >> It's owning a home or owning REITs. >> REITs? >> REITs, real estate equity investment. trust. So, that's another way to buy.

real estate without actually having to. own the home, but you don't get the same. level of returns. >> I mean, this is this is one of the hot. topics of conversation we've had on this. show several times is many of my guests. that are sort of financial advisers say. that owning a home is a bad investment. I think from what I understood from the. research and from reading your books. that you feel differently. about that. >> Yeah, I mean, I couldn't feel more. differently. When we look at where is. wealth created in the United States and. also abroad, it's in two places. It's in.

home equity and it's in the stock. market. So when you look at housing. and you take someone who owns a at home. and we'll talk about it. I know it's. hard to buy homes right now. Uh but when you look at people who own a. home versus people who rent, homeowners of America follow this for 1. second. Homeowners of America are worth. 40 times more than renters. So the average homeowner of America. today. is worth over $400,000.

>> But this doesn't establish causation. I. that doesn't mean that buying a home. make made them rich, right? >> It actually does and I'm going to go. through that here. So the average. renter's worth $10,000. Right? So why why does buying a home. build wealth? And how much wealth in the. United States is now in home equity? Wall Street Journal just ran an article. on this, came out 2 days ago. There's. $34 trillion now in home equity in. America. This number has gone up 90% since before.

COVID. The other money. is in retirement accounts, which is 60. 70% in stocks. There's $45 trillion now. in retirement accounts. So those two. things alone equal $80 trillion. Right? Like when you want to go like. where are the breadcrumbs? Where is. wealth being created? It's right in front of us. Now the. problem that we have in the United.

States, but also look, we're here in. London right now. The problem we have in. so many cities is that real estate keeps. going higher and higher and higher. And. people's incomes are not keeping pace. with the cost of buying a home. So when someone comes on a show like. this and says, "Look, you don't have to. buy a home. It's cost more to have a house than. rent. You you know, I I watched one of. the shows. I won't say who it was. It. doesn't matter. They all said the the. thing. Don't buy a house, you'll be. trapped, you'll have to pay you'll have.

to pay real estate taxes and you'll have. to pay insurance and things break. They. go through all these expenses. And it makes it sound like oh yeah, if I. rent it'll be cheaper. So who who do you think pays these. expenses when you rent? You do. The landlord passes the cost of. these expenses on to the renter. ultimately. Why do they do this? Because. people who buy real estate buy it for an.

investment. They buy it for an. investment. They're not They're not. subsidizing these costs. So it's a hard thing to hear and. especially when you're young. Like I. have a a son who's 22, he's in Chicago. He's going to move to New York City. It'll be extremely hard for him to buy a. place in New York when he starts working. right away. Just will be. Probably won't. for two or three years. A lot of young. people when they move to a major city. they can't afford to buy right away. When I came out of college like you I. was in credit card debt.

I had $12,000 in credit card debt. I. remember opening up my bills and having. the room spin. and thinking I'm never getting out of. credit card debt. How am I going to buy. a house? But I did and in fact I didn't buy a. home when I was young by myself. I bought a home with a best friend. So. how did I get my first house? First. house we bought was a quarter of a. million dollars. We put 10% down. and my best friend and I, Andrew, we. split that down payment. So we each put. $12,500 down. This is how we scraped it.

together. House was a complete. fixer-upper. and we didn't have enough money to make. the mortgage payments so we rented out. bedrooms and we had friends rent. bedrooms and that helped us cover our. mortgage. We scraped it together and. that's what a lot of people do when. you're young. But if you don't get in the game of home. ownership and you rent in your 20s, and. you rent in your 30s, you're going to. turn around in your 40s and having not. built any net worth. When I wrote The Automatic Millionaire.

20 years ago, two things have happened since then. The stock market has gone up in 20 years. 600%. >> Mhm. >> Okay. So, if you had a. $100,000, just that is gone to $600,000. If you bought a house, the house has. gone up 400%. So, when you read this book with all. these There's a a whole chapter of. updated success stories. There are a lot of ordinary people that.

started saving 5, 10, 15, $20 a day, bought a starter house, and today. they're millionaires. >> So, am I not better off renting. >> [clears throat]. >> and. investing in the stock market. versus buying a house? Because obviously when I when I when I. buy a house I'm paying a premium on the. house so that I can get a mortgage. >> I want to bust this myth because what. happens is people come on and they go, "The stock Look, I can tell you right. now the stock market over the last 20.

years has averaged over 10% annually.". People go, "The returns are better in. the stock market than in real estate.". Yeah, but that's not apples to apple. comparison. Why? When you buy a piece of real estate When. you buy a home, people don't typically pay cash for. their first house. They put down 20% and they borrow the. other 80%. So, you take like an example. of a Take a $200,000 home. $200,000 home, you put 40 grand in. Home goes from 200,000 to 400,000.

in 10 years. This has happened to so. many people in the last 5 years. Since. COVID, there are markets all over the US. where housing prices have gone up 100 to. 200%. So, a person buys a $200,000 home, they borrowed 80%, it's doubled, so. they've made $200,000 in profit. They didn't put in $200,000. They put in. 40. So, they got a five times return on. their down payment. They go to sell. their house.

They don't pay taxes on the gain. Because when you own a home, at least in. the United States, you own a home for. over two years if you're single, you get. $250,000 in tax-free gains. If you're. married, you get over half a million. dollars in tax-free gains. You get tax. deductions on the mortgages. So, what happens is people come here and. they go, "You know what? You shouldn't. be You shouldn't be tied down. You need. to be flexible when you're young. You. don't want to have the responsibility. And you should take the extra money and.

you should put it in a mutual fund." And. you know what happens in the real world, Stephen? People don't do that. They rent an apartment that's nicer than. what they can afford, and they spend all. their money. And then they turn around. in their mid-30s, and they have no. equity cuz they haven't bought anything, and they also haven't saved money. It is an absolute freaking myth. that people take this extra money that. they could have used to buy a house, and. they're going to put it in the stock. market. They don't do that. And that's.

why also, by the way, corporate America got into the game of. buying up real estate all over America, houses, and building apartments to rent. to an entire generation hoping. these people never buy. This like 10 days ago, Trump came out. and basically said he wants the. institutions out of buying up all the. homes in America. Why does he want to do that? Because he.

cuz he recognizes. how serious of a problem it is to have a. generation of Americans who are renters. I'm telling you, when you look at. average Americans, average I'm talking. about ordinary Americans, when you look. at where their wealth is, it's in home. equity and it's in the stock market. And. this is the last thing I'll say. Generational wealth is created. for better or worse through home equity. So, when you look at what you know, you.

asked the question about causation. If a family doesn't buy a home, the likelihood the next generation can. buy a home is very low. Because it's the when the someone dies, the money that is in the house, that. home equity, is often what transfer transfers to the. next generation helps the next. generation buy a house. >> I was looking at some stats here cuz I. want to what I want I wish I could sit. sit down all of the guests that have. been on my show that have had a.

difference of opinion and have said that. buying a house is a bad investment. >> It could be a [clears throat] really. interesting conversation, right? >> It would be a really interesting. conversation. Uh what I've done as an. alternative to that approach is I've. pulled up what they've said. And I'm. going to give you some of the things. they've said just so so you can rebuttal. them um and have your say on them. One. of the things that they often say is. that long-term real inflation-adjusted. home price appreciation in the US is. about 1% annually. And one of my guests. cited Robert Shiller as the evidence of. that. After maintenance, um which usually.

equals 1 to 2% um property taxes, which. equals about 1%, insurance, and. transaction costs, the net real returns. approach roughly zero on average. So, when you say housing is a great. investment, are you referencing the. gross appreciation, which is the. the total appreciation, or the net. returns after taxes, maintenance, insurance, and selling costs? >> So, when you dig into these kind of. numbers like this, what they are is they're numbers, but. they're not real world. Right? So, like. when you when you talk to someone who. owns a home today and they've owned it.

for 20 years, and you ask them, "How much of your net worth is now in. the equity in your house. Over 50% of their net worth is in their. house. You will see people on your. YouTube channel that literally, if you. read the comments, and I'm sure you do, where people say, "It's not true. There. was I read comment yesterday on your. YouTube page. All I know is. I bought a house and it's gone up in. value three and a half times and the. rent when I bought the house was $1,200.

and the rent today to buy that if I had. that house if I was renting it would be. $4,000. So, the thing is you have to understand. is that rents always go up, Steven. Like. I live in New York City for 18 years. When I moved in New York City in 2001. a really nice apartment. a nice apartment was like $6,000 a. month. When I left New York, that same.

apartment was $25,000 a month. Follow the Follow the insanity of that. math. Now, that apartment went from. being. a $2 million apartment to a $5 million. apartment. So, I could have been renting. it, but in my case I owned it and it. went up in value $3 million. So, I have friends who have been renting. in New York for 20 years. They have. built no net worth. I have no vested. interest in this conversation meaning I. don't sell real estate. I'm not a real.

estate agent. I'm not selling real. estate. I've just seen in the real world how. people have built wealth. The The The. The McIntyres in this book, The. Automatic Millionaire, when they came. into my office and they were worth $1.8. million. and he was 52 and able to retire having. earned an average of $40,000 a year. all their money wasn't in the stock. market. They had bought a home in San. Leandro, California. What he What they. called a middle class neighborhood.

Their home at the time was worth about. $300,000. They had paid their mortgage off and. they had bought one more house on their. street. They rented the first house. They bought a second house on their. street. They paid that mortgage off. And so they owned two homes free and. clear. One house they got income from. One house they lived in with no debt. And then they had saved money in their. 401k plan. >> So if I was uh a young person or not. even a young person, a middle-aged and. older person who took my down payment.

that I was going to pay into the house. If let's say it was Say my down payment. was $20,000 and I put that into the S&P. 500 instead. Over the long run, won't that grow. larger than the total home equity. potentially? >> Here's why the index fund theory doesn't. work. You can't live inside an index fund. You can't live inside a mutual fund. You. have to live somewhere as long as you're. alive. Here's what people should do.

Take a look at what you're paying in. rent. Now ask yourself a question. If I am paying 5,000 a month in rent. Which lots of people are, right? Do you. know people paying 5,000 a month in. rent? >> Yes. >> Okay. So they're paying 60,000 a year. Let's take that number. >> Yeah. >> So over 10 years they're going to spend. $600,000. in rent. >> Yeah. >> If the rent doesn't go up. >> Yeah. >> In 20 years they're going to spend 1.2. million in rent. If the rent doesn't go up.

In 30 years they will have spent. $2 million in rent if the rent doesn't. go up. But the rent does go up. So the question you just have to ask. yourself is am I going to take all this. money that I'm spending on rent and. never build anything? And if you really believe that renting. is better than owning, then you should still consider the idea. of buying something that somebody else. rents. Cuz I promise you somebody's getting. rich in the transaction. If you're the renter, you're not the one.

who's getting rich in the transaction of. renting. It is a great short-term solution. renting. It is not a great term long-term. wealth-building solution. >> The other thing that people often talk. about and you you cited earlier is the. mobility that renting gives you. >> Yeah. >> Your son was here a second ago. He's 16. years old. >> Yeah. >> Uh soon he'll be at the age where he's. got his own place and he's thinking. about different career opportunities and. I've got AI as this big thing so he. might want to go to San Francisco, then. he might want to go live in Florence and.

wherever else. If he's bought a place, there is a interesting sort of. psychological but also financial. component to the fact that it makes it. harder for you to move with the. opportunity of life. And if we are if if. what people say about the future of work. is true, that we're going to have many. more careers in our lives than we did in. the past, one might assume that we're also going. to be more mobile. And so. is there an argument to say that buying. a house might hurt my professional. opportunities, my ability to pursue. professional opportunities?

>> The answer is possibly, right? But. here's the thing about rent. Rent's. interestingly enough, a major obligation, right? Usually when. you go and you do a lease, you lock yourself into a 1-year lease. Sometimes you lock yourself into a. 2-year lease. When you buy something, and this is assuming that you have the. money to buy something, Stephen. Look up cuz you've got all the data at. your fingertips here. Look at what the. average length of time it takes to sell.

a home in the United States. Just just Google that right now. Cuz what I will tell you is in certain. markets, you can put your home on the. market and you can sell it in less than. 90 days. Now, some markets you can sell your home. in less than 30 days. In many cases, you actually have more flexibility when. you own something than when you rent. And that's if you want to sell it. >> It says the average time from listing to. sale. is about 47 to 62 days from listing to. closing in 2025 including 16 days on the.

market and 30 to 45 days to close. >> That's called less than two months. >> Even in hot markets the process from. putting a house on the market to legally. selling it can take 1.5 to 3 months. meaning home equity isn't a quickly. accessible investment. >> Yeah, but do you think that's pretty. quick? 90 days? >> No, it is it is. I mean it takes takes. you that much time to get out of a. lease. >> Exactly. So so here you got a piece of. property that you can turn around and. sell in less than 90 days. Now this is. the US. You can't do that like for. instance I live in Italy. That could be. very hard to do that in Italy. But in.

the US you've got something that's in a. good market it's liquid. The other thing. is you can rent it. Right? You're you're. actually not trapped. If if you start to. build equity in your home and you pay. your mortgage down slightly next thing. you know you're able to rent that. property and you can still move. Today. people are taking their homes and. they're Airbnb-ing them. What I really. want for people is a chance to be. financially free. There's also an age at which it doesn't. matter if you own. You know, once you. start to get older and you've built. financial security you get in your 50s.

or your 60s or 70s and you just want to. travel and you don't want to own. anything, that's a different stage of. life. So the question just becomes. the money that you make. I go back to. the 90,000 hour comment. When you make. when you work 90,000 hours over your. lifetime. what's your plan to keep some of this. money? You have to have a pay yourself first. plan. That has to be your number one. priority is that when you earn money the. first person who you're going to pay is.

you. If you say, you know what? I. watched even and I saw David and I've. seen a bunch of other people on this. show and I'm not going to buy a house. Okay. Then. you have to pay yourself first more. Now. I go around the world for the last. 30 years starting with Oprah with the. automatic millionaire. I launched this. book on Oprah and I talked about you. have to save 1 hour a day of your. income. And people will get on these social. media boards and be like, "I can't save. 10% of my income.".

They'll tell I I can't live off 90% of. my income. Like it's not possible. I. have to spend all of it. Right? Well, then that person who's. renting. and not buying a house, which is forced. savings, is clearly never going to save. So, the. other thing about buying a house is it. does require. forced savings cuz when you use a have a. mortgage payment, part of that mortgage. payment is paying down your debt. And I. teach you how to use a bi-weekly. mortgage payment plan. So, you take a. 30-year mortgage and you pay it off 5. years earlier.

And doing that can save you, depends on. the size of the home, can save you 50 to. $100,000 just in interest payments. >> You talk about having a savings mindset. What is a savings mindset and how does. one go about saving if they are one of. those people that says, "Listen, I'm. barely getting by as it is, David.". >> Yeah. >> How how the hell am I going to save. money when I'm actually increasingly. getting into more debt right now? >> So, the first thing is you have to find. your money. Right? So, what I what I find, Steve, is. when I talk to people, most people don't. know where their money goes.

Literally, they don't know. They're like. I I'm like, "How much money do you spend. a month?" "Well, I'm not really sure.". "How much money do you spend a year?". "Well, not really sure.". You need to be sure. So, you should be. doing something to track where your. money goes. Now, you can be. sophisticated. You can use an app that. will track where your money goes. You can also take out a pad of paper. And I give people a 7-day financial. challenge. For 7 days, you just bring a. little pad of paper with you and write. down every single day where your money. goes. Now, why do I want people to do that?

Because most people today are spending. money unconsciously. I go back to these. phones. The fact that I don't even I don't even. have to carry a wallet anymore, right? It's just click click click and pay for. things. We've lost touch with spending. money. So, when people start to see what. they're really spending, it's a wake-up. call. The biggest thing I've been sharing. lately is what does it take to blow. $10,000 a year. per day in terms of spending? How much money do you need to spend a. day to blow $10,000? Now, show us the.

Here. Now, we happen to have these are We have. pounds today, right? So, um. So, I I'm holding Stephen right now, I'm. holding what is known as a brick. So, I don't know if your staff told you. how much I'm holding here. You know. what? What do you guess I'm holding? >> It looks like maybe $5,000. >> Okay, so this is a life-changing amount. of money. Stephen, this this is $10,000. right here. And what does it take to blow $10,000. in a year per day? How much money you. have to spend per day to go through.

$10,000? I'll make it easy for you. The The answer is $27.40. a day. $27.40 a day adds up equaling $10,000. over the year. Now, before we go through. where do you where do you spend this. money, and how do you waste $27.40 a. day, the question becomes if you didn't. waste $27.40 a day, and you were able to get yourself to. invest $10,000 a year,

what could this be worth. over time? And the answer is in 40 years, if this was in the S&P 500 fund, which. you quoted earlier, and you earned 10%. annually with reinvested dividends, that stack there would grow to 4 million. 4 over $4,400,000. If you invested $27.40. a day. >> Pass me this big brick. >> Yeah. >> So, if I only save.

half of this a day, then in Did you say 40 years? >> In 40 years. So, let me give you the. math on a couple different ways of doing. this. Okay, so what would happen if you. invested roughly half of this a day? The. number I use is $27.40. a day. It's the magic number. That equals $10,000 a year. If you invested that a day for 40 years, you'd have over 4,424,000 dollars. >> If I invest $27 a day, in 40 years I'll. have 4 million dollars.

>> Over 4 million dollars. Let's go through the yeah, but now. Because people are going to hear this. Some people are going to go, wait, what? And then we'll talk about where you find. $27.40 a day. Yeah, but. 4 million 400,000. dollars won't be worth a lot of money in. 40 years. With inflation, it won't be worth that. much. It won't have the same purchasing. power. My answer would be, it's worth a whole. lot more than zero. Right? If you're not saving any money, if you can't save $27.40 a day,

you won't have 4 million 400,000. dollars. Yeah, but with taxes, you know, it won't. grow that much. Well, it could if it was. in a retirement account. You wouldn't be. paying taxes on the money. Yeah, but it's not possible to earn 10%. on my money. Well, the stock market for. over 100 years has averaged over 10%. annually with reinvested dividends. Yeah, but the stock market's risky and. complicated. Well, no, it's not. If you. bought an index fund, it's actually not.

that risky and complicated. Yeah, but I don't know. I don't know how. to get started. Well, you could start. really easily. You could. open up a brokerage account. You could. go to a Charles Schwab, Fidelity. I mean, I'm literally going to go. through them all. Vanguard, Robinhood, Coinbase, Acorns. And in less than 10 minutes, you could. open up an account and be saving. Pick a. dollar amount. $5 a day, $10 a day, $27. a day. And that could change your life.

Now, why is. Stephen such an important dollar amount? Here's what I can tell you having done. this for 30 years. This dollar amount right here, first of all, this is. one in two Americans don't have a. thousand dollars in a bank account right. now. So, this is 10 times what one out of two. Americans have. But more importantly, $10,000 when we do. surveys, and we ask people how much money would. it take to totally change your life,

the answer's not a million dollars. The answer's not a hundred thousand. dollars. The answer's actually 10,000. And the question is why is it 10,000? And the reason is is that's about what. the average person has in credit card. debt. And they feel like they're drowning like. you talked about earlier. And they know that that could pay off. their credit card debt. Or. they have a job they don't like. And they, if you. knew that if they had $10,000. in a savings account,

they'd quit that job and they'd be free. They'd have to go find another job. >> Or start a business or something. >> Or start a business. Or God forbid they're in an abusive. relationship and they can't leave. But. if they had $10,000, they'd leave. So, you know, a lot of people go, "David, you just make this all too simple." And. it's true. I do. Because when it's. simple, people take action on it. So, for years, I have taught this concept. called the latte factor. >> [snorts]. >> A lot of people love me for it. Now, I.

have a lot of people hate me for it. And. I have taught that, you know, we waste. small amounts of money on little thing. I had your staff bring me a nice coffee. Um. when I started teaching the latte. factor, I would talk about the idea that. we waste. five bucks a day on coffee. And that if you don't believe you can. start saving and investing, at least save five dollars a day. Make. your coffee at home. And people would say, "But I don't want. to give up my coffee." Okay, well, then. figure out another way to save $5 a day. This iced coffee, I don't know what.

costs here in London. In New York City, that coffee right there is $9.50. Plus a tip, it's over 11 bucks. I know cuz I was just in New York. So, today we we had a bunch of props here. and I said, "Well, let's try to show. like what what is $27.40?" Like when I. go to my hotel later when I leave here, a cocktail's going to be 30 bucks. Right? I was just in New York City. Cocktail I had a cocktail in my hotel. was $31.50.

Wine, $50. Eating out you you going to. have lunch today, it's going to be $25. And people say, "Well, I have to eat.". And I go, "I know you do, but you could. also brown bag your lunch. It's what my. grandmother did.". Now, her friends teased her, but my grandmother was able to retire to. California. and her friends all got stuck in. Milwaukee, Wisconsin where it was cold. cuz they couldn't afford to retire the. way she did. >> How many people could. actually save $27 a day? Cuz I if I go.

back again, just over 10 years in my. life, I mean, there's no chance I could. have saved $27 in a day. There's just no There's just no. There's no way. >> If you go back to what age? >> If I go back to between. like 18, 19 years old, roughly that. period of my life. >> Yeah. >> There was no way I could have saved $27. a day. >> Here is really the question. Do you have. friends and do you think you have people. who work with you. who are making more than $50,000 a year. and they're not saving $27 a day?

They're not even saving $10 a day. >> This is true. I actually did a bit of. research um on this and it says. approximately 40 to 50 million families, if we just take the United States where. I think there's what, 330 million people. roughly? Um approximately 40 to 50 million. families in the US can realistically. save $27 a day. This represents roughly. the top 30 to 35% of households. For. everyone else, the bottom 65 to 70%. saving that amount would require either. extreme poverty level budgeting or is a.

mathematical impossibility. >> Over 40 million people they think can. afford to save $27.50 a day? >> Yes, it's based based on income and. expenditure data from 2025 to 2026. Approximately 40 to 50 million families. in the US can realistically save $27 a. day. >> So, for those 40 to 50 million people in. the United States, that would be life-changing. Now, are there people who can afford to. save that? Absolutely. In the United. States, I just I was just in Arizona. I. just did a keynote speech. I asked the.

audience, this is when the government was shut. down. I said, "How many people do you think in. America are taking and receiving. SNAP checks?". >> What's that? >> Thank you. Because, by the way, most. Americans don't even know what a SNAP. check is. That's a check that the. government gives to people for food. And the dollar amount's a little over $6. a day. So, smart people in the room, by the way, I didn't know the answer to. this a week prior, either. The answer is.

about 41 and 1/2 million Americans. get a SNAP check. When I told the room that, the room. gasped. I said, "So, when you under when you. hear that the government was shut down. for 6 weeks, that was three pay cycles. Well, the average American doesn't have. 2 weeks of expenses set aside. I mean, I don't think everybody fully. grasps the problem right now. Four out.

of 10 Americans can't get their hands on. a thousand dollars in case of emergency. purposes. If you actually dig into the. Federal Reserve data, it's 37% of. Americans can't get their hands on $400. in case of emergency purposes. So, there's a whole section of America. that's truly struggling. Like. but there's a whole lot of America. that is still struggling. They're living. paycheck to paycheck, but their money's. being taken from them all the time.

because they don't have a plan for it. >> For that bottom 60% of Americans that my. research says wouldn't be able to save. $27 a day, um the data reveals a. discretionary income cliff. Once you. drop below the top 40% of earners, the. money available after the bills vanishes. rapidly. The top 20%, which earn I think. $96,000. per household, are in a surplus. The. middle 20% um have a $15,000. uh which the $27 a day takes 66% from, but the bottom 40% often have a roughly.

$2,000 surplus, so it's impossible for. them to get to the $10,000. For that. bottom 40%, what's what's the advice for them? >> Start with something. Okay, so like we took this 50 and we. said cut it in half, 25. I would say, can you save a dollar a. day? I have actually talked about this idea. Really simple, could you save $10 a day. for 100 days? So like if you're listening to me and. you happen to really be struggling right.

now, my question would be could you save. $10 a day for 100 days? Why? Because it. would get you to your first $1,000. And you now have more than 50% of. Americans who don't have savings. And I can't tell you how many people. have come back after 100 days and said, "Okay, I did it. It wasn't easy.". For some people saving $10 a day could. be really, really hard. But. you're you're in a fitness. You saw my. son who just came in here. Fitness is built through daily action.

Right? It's built through daily action, daily eating well, going to the gym, doing certain things on a regular basis. Saving's the same thing. There's a company called Acorns. I. invested in Acorns back in 2015. Acorns. came up with an app. that helps you roll your change up. So, if I go to Starbucks and I spend $9.50. on a coffee, you can round it up where the 50 cents.

to 10 bucks is put into investments. Just rounding up your change. And people have saved tens of thousands. of dollars over the last 10 years by. just rounding up their change. >> Every time I've tried to improve. something in my life, like my. businesses, my health, my relationships, I've noticed that the biggest shifts. have come from being better informed. And when it comes to our health, most of. us know very, very little. So, when our. team was approached about partnering. with Function Health, it felt very much.

aligned. Their team has developed a way. of giving you a full 360° view of your. health, many of the things that are. going on in your body in the form of. different tests. You do one blood draw, and it gives you access to over 160 lab. results, hormones, heart health, inflammation, stress, toxins, the whole. picture. I use it, and so have many of. my team members. >> You sign up, and you schedule your. tests, and once you're done, you get a. little report like the one I have here. I can see my in-range results, my. out-of-range results, and there's a. little AI function, too. So, if I have. any questions about my out-of-range.

results, I can just go in there and ask. it any question I want. And these tests. are backed by doctors and thousands of. hours of research. >> It's $365 for a yearly membership. Go to. functionhealth.com/doac. and use the code doac25. for $25 off your membership. >> I had a friend of mine contact me, and I. I spoke to one of the previous financial. advisers and educators that I'd spoken. to on the show about him. He told me he. was in deep financial debt. Probably. earns about 50,000 pounds or dollars a.

year, but has got himself into real. debt. And I imagine a lot of my. listeners are are. somewhat in debt, whether it's credit. card debts or loans or others. Do you. have any specific advice to people that. are currently straddled with debt? >> Absolutely, because it's one of the most. important things you need to know how to. get out of. Debt is like quicksand. Like, you know, you talked earlier about. how you were in debt and what that felt. like. When I came out of college and I. had $12,000 in credit card debt, it felt. like the greatest weight on my. shoulders. Like I was carrying like a. 50-lb backpack. And how did I get out of.

debt and how do you get out of debt? I. will give you the very simple formula to. getting out of debt. DOLP. DOLP stands for done. on last payment. If you said to me, "David, I've got five credit cards." I'd. say, "Okay, Steven, take out a piece of paper just like this. and I'd start listing your credit cards. I'd go 1 2 3 4. 5." And I'd list them all. Visa. MasterCard.

I'd list them and then I want to know. how much do you owe? So, I'd put the. dollar amount down. And what I would do is I'd put the. dollar amount down on paper and I'd list. it small. to large. Then I want to know the interest rate. Now, what people say is, "Oh, you should. take the highest interest rate and pay. it off first." But I wouldn't tell you. that, Steven. I'd tell you you take the smallest. credit card. I don't care what the.

interest rate is. >> The smallest amount. >> Smallest amount. So, maybe this card. right here is $500 and this card down. here is 3,000. I'd have you make minimum payments on. every card. automatically. This is really important, the automatic part. Have you go on I'd. literally go in your house and open up. the I'd open up your iPad and I'd have. you make minimum payments online. automatically so that every card's paid. on time. Then I'd say, "Steven, how much extra.

money do you have?" cuz I want you to. put it all towards the smallest card. We're going to get that small card paid. off as fast as possible. We're going to. add all the extra money to that small. card. Minimum payments on everything. Once that card's paid off, we're going to go like this. You don't. have to close the account cuz we don't. want to lower your credit score, but. we're going to put that card over here. and never use it. Now we're going to go. to the next next smallest card. Some people call this the snowball. approach. The reason I teach this system. is it reduces the amount of credit cards.

you have as fast as possible. And you see yourself make progress. It's really important to see yourself. make progress when you're doing anything. financially. Then I would attack the interest rates. Because the interest rates aren't always. permanent. You can negotiate your rates lower. You can move credit cards to another. card with a low interest rate. Have to be very careful though when you. do that because they're waiting for you. to make a slip up and make a late.

payment. And when they do, they'll jack. the credit card interest rates back up. again. You can also call up your credit card. companies if you're really struggling. and tell them, "I'm struggling and I'd. like to know if you have a program in. place where I can stop the interest rate. and pay these cards off. in more accessible ways." This is. basically what the nonprofit credit card. counseling organizations do. But the. credit card companies often have. programs too for this. They'll tell you to stop using the card.

They'll actually make it so you can't. use this card anymore, but they'll stop. the interest rate. So, that approach has helped so many. people get out of credit card debt. Now I just want to say something super. important cuz I've gone through this. When you go through the work of getting. out of credit card debt, it's a huge victory. Don't go out and celebrate. on the credit cards. Because I got myself out of credit card. debt in college junior year and then I.

went out celebrating and got myself back. into credit card debt. And people do this all the time. Usually. people get themselves in a hole at least. twice, sometimes three times. Don't go back in a hole again. Uh I didn't carry credit cards for 30. years, only carried a debit card. And I had to pay it off every month. >> Should these people um who are in the. bottom sort of 60% be thinking at all. about how to make more money? How to. increase their income?

>> Absolutely. >> And what are the like the easiest ways. to do that? Would that you'd recommend? Just from your own experience of, you. know, being in the professional world. and. >> So my experience and I know that you. like you wrote this great book about. Diary of a CEO, right? Anybody who. hasn't read your book, you wrote this. great book. What's the best way to grow. your income if you have a job? It's to be good at what you do. Right? You can have a job at minimum. wage. Let's pretend you work at McDonald's. And you have a job working minimum wage.

at wage at McDonald's. The owner of. McDonald's, the guy who owns that. franchise or the gal that owns that. franchise, desperately needs good. employees. Who becomes a manager that makes more. money? The person who works really well. Now a lot of people go, "Well, I don't I. don't know if I want to work at. McDonald's." I'm just giving you as an. example. Anywhere you work, how you grow your. income is you are the best at what you. do. You show up early. You have a game. plan at work. You work late. You do what.

you say you're going to do. You don't wait to be told what to do. Right? Like I've been an entrepreneur. all my lifetime. The hardest thing about. being an entrepreneur is what? Yeah. >> Everything. >> [laughter]. >> It's everything. And most people are. entrepreneurs who else, you know, a lot. of times it's hard to have good people. unless you're a good leader. People are. so thirsty to have jobs with purpose and. meaning. and most people are actually looking for. leadership. So, if you can be.

really good at what you do, you will make more money. There's no. limit to wealth in the world, right? Like we've never seen so much wealth. being created in our entire lives as. right now. If I were young people, I'd. go, "Well, you should learn AI.". Yeah, you know what? Probably you. definitely should learn how to use AI. because if you don't know how to use AI, you're going to have really limited. skills and go on the. and do certain jobs. You know what else people are going to. go out and do? Learn how to be a plumber. Learn how to be an electrician. Learn how to put up garage doors. I've.

got friends I kind of I was just. recently on a podcast with a guy who's. made a billion dollars putting in garage. doors. And he took me through his warehouse and. showed me their garage door models and I. was like, you know, I've got a friend. who makes gyms that go in garages. I. just connected them. He's got a huge. business making gyms for garages. There's just no limit to the amount of. opportunities out there. You have to. though get out of a stuck mind-frame. I. mean, you had Tony Robbins here. If. there's anybody who can help you get out.

of a stuck mind-frame, it's that guy. Right? But you can't. you can't have they Zig Ziglar used to. call it stinking thinking. You have to have. the ability to look into the future and. believe that your future can be as. exciting today or better. I put up a post yesterday. I said, um. I would rather be an optimist. and be wrong. than a pessimist and be right.

And you show me somebody who wants to. make more money, go in the world an optimist. and figure out how to go make more. money. >> Do you think a lot of this is a mindset? At at the core of it. Obviously, there. are real socioeconomic factors and as. people live in certain situations and if. I think back to you know where I was. born in Botswana, there's just less. opportunity and sometimes you have. oppressive governments and other factors. that will objectively keep you stuck. But all other things being equal, how much of the game is mindset?

>> It always comes down to a decision. And we started by talking about my. grandmother. If my grandmother hadn't. made a decision at 30. that she didn't want to be poor, that. she was tired of living paycheck to. paycheck, she hadn't decided that she would go out. and teach herself about money and take. 50 cents of her paycheck and 50 cents. from my grandfather's paycheck and start. investing, I wouldn't be here today. She made a decision that had a ripple. effect through our family. She built.

financial security for herself with that. one decision. She taught my father how to invest and. he was a financial advisor for over 45. years. My sister's a financial advisor. I was a financial advisor. I spent the. last 30 years teaching people about. money. One woman's decision had this ripple. effect. So one thing I say to people who. are listening, especially the moms, sometimes you got to make a decision. [clears throat] that's not just for you. You're actually making a decision for. your family.

And you can come up with a list of. reasons why this stuff won't work. Somebody who's watching this show or. listening to this right now, they're already interested in this. That's why they're here. Now they're here for a couple reasons. Either A, they're hurting financially. and they know they need to fix. something. Great. Start where you are. Fix what needs to be fixed. Some people are like, you know, I think. I'm doing pretty well, but I'm not sure. if I'm doing everything well. You know, I I've I've opened up my Roth. IRA or I've opened up my 401k plan.

Putting some money away, but I don't. know if I'm putting enough money away. Then you can improve what you're doing. Some people are like, I'm renting. I. think I would like to buy a house. someday. All right, make that a goal. I. teach three buckets when it comes to. money, three baskets. Pay yourself first for retirement. We haven't even talked about emergencies. yet. Putting aside Putting aside money. for emergency purposes. Have to talk. about that. You got to You got to get. more money put aside for emergency. purposes. And then building a dream account. You.

need to put money away for your dreams. Those three accounts should be. automated. >> And on that point of having three. accounts, you call it a future account, an emergency account, and a dream. account. How much of your earnings should you be. putting into each of those accounts on a. monthly basis? >> All right. So, keep super simple. I recommend 1 hour a day. Again, I said. this earlier. It's 12 and 1/2% of your. gross income. >> When you say 1 hour a day, you mean 1. hour of the time you work per day? >> Yeah. So, whatever you make an hour. >> Yeah. >> It If you're say If If you're working a.

40-hour work week 12 and 1/2% of your. gross income. goes off the top into a retirement. account. Now, let me just say something up for. the ya-butters. They're like, "I can't. go from zero to 12%. There's no way.". Then start at 1%. If you're not saving right now and. you're listening to us and all you do. when you leave this podcast is make one. decision. That decision is I'm going to save 1% of. my income. And you start that this month. your life will change.

Your life will change because you start. process of making a difference. It's. just like the first day you go to the. gym. Now, I will tell you if you save 1% of. your income, you won't notice it. And if you did that every month for a. year, at the end of the year you would. have saved 12% and you will be saving. four times what the average American. saves, and you will be in a rockstar. shape. Then the second hour, this is where. people's minds blow up. But the second. hour. So, the first hour goes for the future, the second hour goes for safety and for. dreams.

So. 30 minutes of your income, roughly 5%. should go into an emergency account. And another 5% goes into a dream. account. Now, that dream account could. be for buying a house, could be saving money for college, could. be the vacation you want to take at the. end of the year, could be getting. married, could be the engagement ring. But you're putting money away for your. dreams because when you put money away. for your dreams, that's how they become real.

>> And you know, the book is called The. Automatic Millionaire. This is a book. that sold over 2 million copies. um on its own. Why did you use the word automatic? >> Unless your financial plan is automatic, it will fail. How do I know this? Because I spent 9 years as a financial. advisor at Morgan Stanley and I got to. see firsthand. Everyone who came into my office with an. ordinary income who built wealth, they. did it by saving automatically. Every single time a client came into my.

office and they said, "I'm going to. bring you a check. every month myself.". I never had a client save for more than. 6 months. They stopped. When Once you make the decision to. automate your financial life, it works in the background. Now, here's the thing. Everybody else is already doing this to. you. You go sign You go to Go to a gym to go. work out. They don't ask you to bring. the money every month. They. automatically bill you.

You get a phone bill, they automatically. bill you. Today in many cases when you. rent, they automatically pull the money. out of your account. The banks. automatically take money from you for. your mortgage. When you pay taxes, they're all automated. Everyone takes money from you. automatically. Everything that you sign up for on your. phone is a subscription service. Netflix, go through your credit card. today. Open up your phone, look at all. your subscriptions. All those businesses. are taking money from you automatically.

Why? That's the only way they can be in. business. They know if they don't get. money from you automatically, you won't keep using them. Most people who start off with a free. subscription, it'll take them 3 to 6. months to turn off something that they. don't use. I'm here getting people to automate. their financial life for themselves. >> Is there simple ways, apps, tools, websites we can use to go through all of.

our subscriptions and turn them all off? >> Yes, there are. So, let me tell you the. easiest way. This is really actually. free publicity for Apple, okay? Cuz so many people have Apple phones. Number one, only do your subscriptions. inside of Apple. In an ideal world, don't pay anybody. directly. Do it all through Apple. >> Mhm. >> Why? Because if you go to the bottom of your. phone, you don't know how to do this, and you put subscriptions, up will pop everything that you've.

signed up for, and you can go click, click, click, and turn them all off. >> I got to do that. >> Another thing I will tell you is that. when you sign up for anything, let's say. it's a one-year cuz everything now has a. one-year trial subscription. or a one-month trial subscription, the moment you sign up for it, shut it. off. Because what happens is if you sign up. for anything, and think of any. subscription you can imagine, companies. hate me for this. The moment you shut it off, when the. time comes for it to renew,

they will offer you a better deal to. renew. >> Okay, so I've opened up my phone. I've. gone to the settings. I've clicked on my. name in the settings, and then I've. clicked on the button subscriptions. I have. 1 2 3 4 5 6 7 8 9 10 11. of which. >> [laughter]. >> three of them. I would keep. So, all all other ones have just been. running in the background, and and. that's because I used an app one time,

and it signed me up to some kind of free. trial, and I just totally forgot to. cancel it. So, I've got Oh my god, some. of them are massive. >> Okay, so so so as you do this, what. you're doing right now is a real-life. example. So, if someone's listening to us, watching this, they're married, they've. got kids, or they're single by. themselves, this one exercise, my guess is there are. many, many people listening that could. find 50, 100, 200 dollars a month that. they could shut off. and redirect that money to saving and.

investing. And that could change your. life. >> Are there other apps you can use and go. to to figure out how to cancel all of. your subscriptions? >> So, there are there are, and most of. these apps you have to pay for, right? So, like you can go to. So, then then then you're right back. into paying for now. Probably the two. popular most popular apps are Monarch. and YNAB. You can also use your credit cards. Um. the credit cards are doing a better job. of showing it on your statements. And again, I go back to the Apple.

example because Apple makes it the. easiest to shut these off. >> Maybe some of you will be spending 100. dollars a month. So, I did 100 dollars a. month, and it says, "If you invest, if. you sort of cancel those subscriptions, and invest 100 dollars per month for 40. years an annual rate of return of about. 10%, which is roughly what you get if. you just put it into some of the big. tech index funds at the moment, the. total money you'll have in 40 years. is 632,000. dollars." Which is a staggeringly.

life-changing amount of money. >> It's staggering. And let me just give. some very specific investments for. people to consider, right? And they. still need to do their own due diligence. and read prospectuses, and yes, there's. risk involved in the stock market. But the first one I would talk about and. look at, these are all listed in my. book, cuz I just want to give you cuz. people are like, "What's an index fund? What do I buy?". Look at the Vanguard Total Stock Fund. The symbol is VTI. Okay, this is this is actually the. largest index fund in the world. There's. trillions of dollars now in this fund. I.

talk about it in the book. I looked at. the annual The annual returns of VTI the. last 10 years have been 14%. 14% annually. This fund has 3,500. stocks. You know, all the biggest US stocks. So, you don't have to figure out what stock. to buy. You buy this fund. You buy an exchange-traded mutual fund, you have access to 3,500 great American. companies. I'll give you another stock index fund I. love. >> And everybody can buy this on their.

phone right now. Probably. >> Literally, you can go to Vanguard, Schwab, Fidelity. This fund This is an. ETF, so it's available everywhere. It's. a stock. >> And if you want to figure out how to do. this, and you're listening right now, what I'd do is use ChatGPT or Gemini and. put in the stock the the funds that um. has been said, and ask it how do I. invest in this in the country that I'm. in. What app do I need to use? What. website do I need to use? Again, this is. not investment advice. Well, I guess it. kind of sounds like it is, but. >> Well, no, but but it's also like So,

like if someone says, "Okay, but I'm not. I'm in wherever I am. I'm in the UK. What's an index fund in the UK that. covers the UK?" I'll give you the global. version of VTI. So, cuz I own these. funds. So, I So, the global version of. VTI is a symbol, which is all I'm going. to give you another Vanguard fund. >> When you say you own these funds, for. clarity, you mean you've invested in. them. >> Yeah, I've got money in these mutual. funds. So, this other fund, cuz I have I. want money My My personal money that's. in the stock market, I am 1/3 global. investments, and I'm 2/3 US investments.

So, I have a lot of global index funds. This global index fund, the symbol is. E A. Okay, so this is the Vanguard. global index fund without US stocks. Symbol again is V E A. That fund last year, and it won't always. be like this because global investments. have underperformed the US for a long. period of time. That fund last year was up 35%. Last year global investments. significantly outperformed the US.

investments. And the US investment market was up on. average of 17%. So, the US markets were. up 17% or higher, and global investments. were up 30% or higher. Now, there will. be a point in time, Steve, without a. shadow of a doubt, that we will see a. market pullback. And when that day comes, you have to. stay the course and keep investing. automatically monthly. And then I'm going to give you a tech. fund cuz everybody wants to know what. should I invest in that is, you know, should I invest in AI tech fund?

And my answer would be is you don't need. an AI tech fund. You need the best tech. fund that's existed since my lifetime, and that's the Nasdaq 100 ETF. And the. symbol for that is QQQ. So, go and look at you know, go into. whatever you're using and go look up. QQQ, read about the top 100 stocks in. the Nasdaq, and the returns for QQQ. I mean, actually, in the top of my mind right. now, I can't I I think it's over.

20%. Um. but look up what is the QQQ total return. been for the last 10 years. I can tell you since I put money in QQQ, it's gone up tenfold. Now, the market. has been unbelievable, and there will be. pullbacks. And that is also why I should say this. even cuz we haven't even addressed this. I don't run around telling people to put. all their money in stock market. I also. don't think that young people. should be putting all their money in. stock market. I think one of the.

greatest myths out there is that when. you're young, you should take a lot of. risk. Let me say that one more time cuz it's. super important, so make sure it sits. Everyone says when you're young, you should take risk. The problem with that advice is that. today people in their 20s and their 30s. are taking a lot of risk. They're not. just putting money in index funds. They're putting money in meme coins. They're putting money in meme stocks.

They're putting money in NFTs. They're on social media and TikTok. watching people day trade. They're. trying to get into options. What they're. really trying to do is get rich quick. All I can tell you is the older guy in. the room here, people who try to get rich quick stay. broke forever. And the problem with taking too much. risk with your money when you're young. is if you keep if you do everything. right. Like let's just say you're the. you shut off all your subscriptions. And. you're saving $200 a month, but you put.

that $200 a month into a junk. investment, and you turn around in 10 years and you. have nothing to show for it, you'll stop investing. >> Looking at the QQQ data, so this is the. Nasdaq 100. So this invests in the top. 100 companies in America. >> In the Nasdaq stock exchange. >> The returns over the last 10 years from. 2016 to 2026, the annualized returns. have been roughly 19%. The total return over that period has.

been roughly 480%. So a $10,000 investment 10 years ago. would now be worth approximately $60,000. today if you'd done nothing. >> Done nothing. >> to it. Over the last 20 years, the annualized returns, the return every. year has been 15% with a total return. over that period of 1,500%. And again, so if you've added $10,000 to it 20. years ago and done nothing, you would. have roughly $170,000. today.

>> So here's the beauty of what you just. did. You checked my my my you checked my. advice. You looked at the data. And now you know. what has been done in the past, right? Let me give you a super boring fund. I'm. not sponsored by Vanguard. I'm just. giving generic vanilla stuff here. Look up the Vanguard balanced fund. So write Vanguard balanced fund. And the. Vanguard balanced fund is 60% stocks and. 40% bonds. That by the way is the most.

typical asset allocation, the difference. between stocks and bonds. in the world. The average retiree has a. portfolio that's about 60% stock and 40%. bonds. You look up the Vanguard balanced fund. and what you're going to find is that. fund has averaged over 8% annually since. inception. It is as boring an investment as they. come. So if someone says, "Well, I don't. want to be 100% stocks. I just want to. be I want to be more conservative, but I.

want some stock exposure." The Vanguard. balanced fund is a great example. I list all these funds in The Automatic. Millionaire. One of the kind of funds I. talk about the most is what's called a. target dated mutual fund. I don't know if you guys have Do you. guys have a 401k plan? >> We have something similar. >> Okay. So in the US if you if you have a 401k. plan, what you're going to find when you. open up your 401k plan is you have what. are called target dated mutual funds. This is a one-stop. mutual fund solution.

to your investing. all the way until you retire. And it will be divided among stocks and. bonds and it will be what's called. rebalanced automatically as you get. closer to retirement. So I'll go from. being more stocks when you're young, less stocks as you get older. There are trillions of dollars now in. these target dated mutual funds. When I. wrote The Automatic Millionaire 20 years. ago, it was just getting started. This. automatic solution to investing has. changed the game of investing for.

millions of Americans. That's why. there's 24 million millionaires and. that's why there's now $45 trillion in. retirement accounts. >> We have a brain budget. The way to think. about it is we have a limited amount of. energy that we can spend every single. day. I'm saying find ways to simplify. your life. And one way I've conserved my. body budget is via our sponsor Factor. who are a meal delivery service. They. are especially great because they make. fresh meals and they cater to so many. different diets. High protein, keto,

vegan, vegetarian, low carb, gluten. free, paleo diets, you name it. Every. meal is designed by a dietitian, made by. chefs, and delivered right to me. Fresh. and never frozen. So, if you're ready to. streamline your food intake, visit. factormeals.com/diary50off. and use my code diary50off. to get 50% off your first Factor box. plus free breakfast for 1 year. And this. offer is only valid for new Factor. customers with code and qualifying auto. review subscription purchases.

Over the years, people have reached out. asking me for mentorship, but the. challenge I've always faced is that my. calendar doesn't permit me to help every. single person that reaches out. So, when. I know I can't personally help, I try to. push people towards tools that I think. can. And that's why I wanted to tell you. a little bit about resource that I think. will be great for those of you who are. founders of small and medium-sized. businesses. It's a content series that. our long-time show sponsor Vodafone has. created. It's called Vodafone. business.connected. You'll find it on YouTube. This series.

delivers the knowledge that founders. today need to grow their company in the. digital age. There you'll learn about. personal branding, cybersecurity, scaling e-commerce companies, and. through conversations with many founders. who I've invested in and worked closely. with, the opaque picture of building a. business will become clear. Some of. those founders I've invested in in the. series include Christiana Brenton from. Flight Story, Marissa Poster from. Perfect Ted, Leo Harrison from Chapter. Two, and Georgia Gibson who I've. partnered with to build steven.com. And. these are just a few of the great names. involved, such Vodafone Business, dot.

connected to Land Rover. The other book that you wrote, which. sold incredibly incredibly well, is this. book about Smart Couples Finish Rich. That's the title. Smart Couples Finish. Rich, Nine Steps to Creating a Rich. Future for You and Your Partner. As it relates to how rich or wealthy you. become, the person you choose and the. way that you can figure that. relationship, how consequential is that? >> It's everything. >> Really? >> It can be everything. Why? >> You're married? >> I'm married. >> Yeah.

>> So, why can it be everything? Because here's what here's what happens. in the real world, Steven. Often, we marry our financial opposite. So, I always joke, like I used to a lot. of seminars for couples, and I'd say, "There's two types of people that are. born in the world. One person comes out. literally with a calculator, and they're. born to track where all the money goes, and they love to budget, and they're super excited about. investing. That's one kind of person. The other kind of person. loves to shop, loves to spend money.

Almost inevitably, those two people hook. up. Now, sometimes two people who like to. spend money marry. That's a disaster, cuz they end up broke. So, now, what do you do about the couple. that's got the financial opposites? That's what led to Smart Couples Finish. Rich, because. if you are married to your financial. opposite, you will fight about money. all the time.

And fights about money. are what lead to divorce. They're the number one cause of divorce. The real key in what I've been teaching. now for over two decades is the way you. get couples on the same page when it. comes to money, is you start with your values. So, you look at what do you really value. most together as a couple? You put the money aside for a second. You go through your values. What's most. important to you? What do you really. care about? You talk about your values.

And then you build a financial plan. around what's really most important to. you. >> You say that there's six worst money. mistakes that couples make. And the. first of those is not deciding who's. responsible for what. >> Yeah. So often in a relationship one person. pays the bills. Okay. Who's managing the money? Now I used to say in every household. there should be at least one person. that's paying the bills and the other. person's managing the money, meaning.

that they're in charge of the. investments. That you still get together and go. through it. As I've gotten older, I've really. realized how important this is because I. go back to the fact that the average age. is 59. Average age of widowhood is 59. I'm 59 now. I've had three best friends already pass. away. All men. And they passed away before they were. 57. So all these statistics that I talk. about, I'm seeing them come true. And I will tell, especially the women,

hear me louder hear me on this loud and. clear. But this is important for the men, too. The question you need This is hard to. hear. The question you have to ask. yourself. is if your partner died today. what would you need to know about the. finances? And the answer is everything. Now, what. does that mean everything? That means. you would need to know where is the. money? Does he have money in an old 401k plan? Does he have money in an IRA account? Does he have money in a bank account?

What are the passwords to get into the. accounts? Where's the will? You know, six out of 10 people listening. to us today don't have a will. You have to have a will. >> At any age? >> At any age. If you're especially if. you're in a relationship, you have to. have a will. If you have kids, you have. to have a will. Is there life insurance? You know, so. many people today who have children. don't have life insurance and they don't. have assets. You should at least get a. million to two million dollar term. policy. Super inexpensive.

Protect your family. You have to run. the drill, right? Like we got on a. plane, we flew here today. The first. thing they do on a plane before you take. off is they talk to you about what to do. in case of emergency purposes. The mask is going to come down, you're. going to put it on your face. Okay. You. get on a cruise boat. The first thing. they do is talk about what you're going. to do if the cruise boat's got a. problem. You're going to go get in these. emergency boats. You need to run the fire drill for your. family on finances. I almost [snorts] died like it's now. been four years ago. I my wife found me.

face down. passed out. I was brought to the hospital in. Florence. Um I was in a coma for four days. I was. in the hospital for 17. I had meningitis. When I came out of. just like a movie. I'm laying down, I'm. laying down in the hospital. Doctor's. looking over me. Doctor says, "Do you know what your name is?". I said, "It's David.". He says, "Very good. Do you know what. your last name is?" I said, "It's Bach.".

He says, "Do you know where you are?". I go, "Yeah, I'm in Milan. I just had an. ankle surgery." Cuz I had had an ankle. surgery two weeks prior. Two Two weeks. before that. And he says, "No, no, you're you're in. Santa Maria Novella. You're in the ICU. Uh we're treating you right now for. meningitis. But now that you've opened. up your eyes, you're going to be a. you're going to be okay. You're safe. now.". And then they brought my wife in. They said, "Do you know what her name. is?". I And I made a joke. I said, "It's. Rebecca." She was like, "Who?" And I go,

"Honey, I can still be a smart ass in. the hospital. It's Alicia." And she. starts screaming and yelling and she's. like, "Oh my god, oh my god, he's okay.". But Stephen, the truth was I wasn't okay. cuz when you get meningitis, you get. brain swelling. So I couldn't remember things. I. couldn't remember my passwords to. to the bank account. I didn't know the. passwords to my phone number anymore to. my phone. One of the things I did when I came out. of the hospital, cuz I always managed. the money, is I said to my wife, "We're going to hire a financial. advisor,

and you have to be involved in what's. going on.". We actually had yesterday our annual. account review. Cuz I tell couples, you got to have an. annual account review either together, and if you have a financial advisor at a. minimum with your financial advisor. And I didn't want to cancel the. appointment, cuz I was even though you. guys invited me to come here, I'm like, "I'm keeping the appointment. We'll fly. you to Philly this morning.". And so, again, having worked at, you know, Morgan Stanley for 9 years and been a. financial advisor, I've seen too many. couples.

not do this. And including, sadly, Stephen, my dad. just recently passed away. And my dad. was in the money management business his. whole life. So, he managed the money. And my mom. was not involved. And when my dad passed away, we had to. just like my book, step in and help my. mom with everything. Now, she's lucky. She's got two kids in the business. But if she didn't, my mom was just a. ripe, waiting.

example of somebody who could be taken. advantage of. So, the time to learn. about money is before there's a problem. If you took Smart Couples Finish Rich, honestly, Stephen, it's it's designed to be a a roadmap for. two people together, where you can sit down and go through. this book chapter by chapter together, starting with. just organizing your financial. information, putting everything into. file folders. It starts the. conversation. And then talking about your values, then. talking about your dreams. Then going into, well, what what do you.

want to share? You know, you have a very. cop- I don't know all your stuff, but I. I've followed you for years. As I told. you, I'm a fan of yours. I've got your. book. I've watched your podcast. I've. listened to you now for years. As your business is expanding, your life. is getting more complicated. God forbid something happens to you. tomorrow, >> Yeah, it'd be a [ __ ] nightmare. >> and she's your fiance, >> Yeah. >> she wouldn't even know where to start. >> Mhm. >> And I don't know I don't know if she. would know who to call.

So, it's a worthwhile conversation. Like, I. just had this kind of show and I don't. know, maybe maybe we really need to like. you know, involve you a little bit. >> I was just looking at some of the data. here and it says that in terms of income. ignorance, according to a 2021 study by. Fidelity Investments, nearly 40% of. couples could not even identify how much. their partner earned. It says in terms. of financial infidelity, surveys from. Bankrate and creditcards.com. consistently find that up to 40% of.

adults share that they have kept. financial secrets, which is hiding cash, hiding bank statements, and hiding debts. that they have from their romantic. partner. So, that's almost half. And you pointed at this earlier on, which is the CFO dynamic. In many. households, one spouse acts as the chief. financial officer, and research. indicates that roughly 50% of couples um. have a non-managing spouse who has. little to no idea how much money the. family have total. They don't know where. it is and they don't know the passwords.

>> It can sound scary. It can sound. intimidating, and yet I can tell you. every day people who actually kind of do. this basic stuff that we've talked. about, once you start to do it, you feel. a lot better. You feel better instantly. You don't. have You don't have to go from having no. savings to having a million dollars to. feel better. If you just start. automatically saving some money, paying. yourself first, the moment you make that decision, you'll feel better. You go and you turn off some. subscription fees like you just looked. at. The moment you do that, you'll feel. better.

It's literally like a financial muscle. You start to build this financial muscle. when you start to take action. It is. action that changes your life. I always. say, I wrote all these books. If a. person buys a book, reads it, and. doesn't do anything, then I was a form of entertainment. If you listen to a podcast on money and. you don't do something, then we were. again a form of entertainment. My purpose for doing this podcast today, why I got on a plane and flew out here. merely to do this with you,

was I want to try to change somebody's. life today. I've always taken the approach of like, I want to change a person's life, one. person at a time. And sometimes the things I share are. hard to hear, but I also know they wake. people up. You had this great great. quote in this book. I was showing this. today to my son. I'm holding For those of you who can't. see me, I'm holding Steven's book, A. Diary of a CEO, which has also sold. millions of copies. And this is your quote on page 2 33. I. don't know if you remember your quote,

cuz sometimes you forget them, right? If you want long-term success in. business, relationships, and life, you. have to get better at accepting. uncomfortable truths as fast as. possible. When you refuse to accept an. uncomfortable truth, you are choosing to. accept an uncomfortable future. The one thing that wasn't in this quote. was money. And everything we're talking about is. I'm like, you're going to work 90,000.

hours over your lifetime. If you don't. pay yourself first and you have nothing. to show for it, the uncomfortable truth. is you will be broke. We haven't talked. about um global issues and government. issues and debt. Why do you have to take care of yourself. financially right now more than ever. before? Because the future is about to radically. change. And I will talk out of both. sides of my mouth for a second. Number. one, I believe the next 10 years, hands down will be the greatest. opportunity to build wealth in our.

lifetime. AI is create going to create. so much wealth that. we've never seen anything like it. Like. when you look at the returns in the. stock market from last year, they're a. result of AI. What's happening is AI is. making companies more profitable and. more productive than they've ever been. The downside is people are losing their. jobs. Right? You've had people on the. show including Tony Robbins talking. about this. And there are going to be a. lot more of those job losses. So some. people are going to get much wealthier.

And then a whole lot of other people are. going to have a challenge. But there's another problem that we have. we're not talking enough about. And that. is the safety nets of governments. All these safety nets that were created. in the US, social security, Medicare, Medicaid, unemployment. You can go to through. every single country. All of these things are called. entitlement programs.

Which is a fancy word for saying. the government made a promise to you. And a whole lot of people are dependent. on that promise. And there's not enough money to pay for. those promises. So like in the US, you take social. security. The average social security check right. now is $1,900. Not a lot of money, but about 60 million. Americans. depend on that amount of money. In the US, social security, this is.

government data, not me. You can do all. this stuff online. The government is telling us that in. 2033, that's around the corner, the social security is going to be. underfunded and they're going to have to. cut the benefits. Now what they're. talking about is cutting the benefits by. 20%. You have a a of Americans that that's. going to be a real problem for them. Every country's got this issue because. people are living longer, governments have more debt than they've. ever had.

I am here to tell you, it's a cliché term, but no one's come to. save you. It's you're going to have to save. yourself. And you're going to have to take your. personal financial well-being. more seriously now than ever before. And if you do, you will be in great. shape. If you don't, you will be. dependent on a system that is buckling. >> One of the things in your I think it's. the sixth point of the six things that. couples get wrong is waiting too long to.

pay off the mortgage. What do you mean by that? I actually had. a friend contact me um. and ask this. They said, "Stephen, I've. got some cash that that's been given to. me I think through an inheritance. Should I pay off my mortgage or should I. go invest in the stock market in the S&P. 500 or something else?". >> Yeah. >> And I didn't know what to say cuz I'm. not a financial advisor. >> So, if you called me up and you said, "David, what what should I do?" I'd go, "Stephen, what's the rate on your. mortgage?". Then, you'd say, "Well, David, I got a. mortgage 5 years ago and it's 2 and. 1/2%." And I'd say, "Okay, well, that's.

a really low rate, Stephen. You know. what? You can put the money in a money market. account right now and make more than. that. So, maybe you don't need to rush. to pay it off as fast as possible. But, if you've got a mortgage at 6 or 7. or 8%, it's a no-brainer. The biggest thing I can tell you about. paying down your mortgage early is. actually really simple. Here's ways to. do it. If you make one extra payment a year on. a mortgage, you'll take a 30-year. mortgage and you'll pay it off depends. on the rate 5, 6, 7 years sooner.

So, you can go online, you can run a. calculator. Today, you don't even need. calculators. You just run the question. You put in your mortgage, you tell Jim. and I, "Here's the size of my mortgage. Here's my mortgage payment. If I make an extra payment a year, how. many how many years faster will I pay it. off? And how much will I save? And. you'll see the number. When people see the number in black and. white, they go, "I've got to do that." Now, here's the. key. Make that payment automatic.

Easiest way you make your payment. automatic is either make one extra. payment at the end of the year, or. take your mortgage payment and increase. it by 10%. So, if your mortgage payment's $1,000, make an $1,100 month mortgage payment. and tell the bank you want to add that. to the principal. When people do that, they need to make. sure though that money's actually paying. down the principal. Another way to do that is a bi-weekly. mortgage payment plan. Where you take your mortgage, you split. it in half, you pay half every 2 weeks. That'll also pay your mortgage off.

early. >> Prenuptial agreements. I'm engaged. >> Yep. >> Should I be getting a pre-nup? >> So, I would tell anyone who's getting. married, number one, if your incomes are not the. same, you should get a pre-nup. Number two, if you both have good. incomes, you should get a pre-nup. Number three, if you're in your 30s, you. should get a pre-nup. You would never go into a business. without a contract. Marriage is the ultimate contract. It just is. Now, is it romantic to do a.

prenuptial agreement? No. >> [snorts]. >> Does one person in the relationship. typically not like the doing a pre-nup? Yes. I know a lot of women today who want. pre-nups and the husbands don't want. them. It's whoever's making the money. But, I will say this about pre-nups. You need a lawyer, she needs a lawyer. You cannot go and do a pre-nup right. before you get married. When people do. that, those pre-nups get thrown out the. window. Because they will claim and say and have. an argument for, "I was under.

extremely undue influence to sign this. agreement before. the wedding.". And those agreements get thrown out. Even if there's disclaimer language, and. both of you needed attorneys. And prenups agreements can often be like. a negotiation. And you can learn a lot about your. partner that it's not always pretty. I'm. not saying you, but one can learn a lot. about their partner that's not always. pretty when you do a prenuptial. agreement. And once the prenuptial agreement is.

done, if it's a reasonable prenuptial. agreement, it goes in a file. It doesn't. get looked at again. And it won't matter unless the day comes. that you need me to pull it out. And that's for a first-time marriage. Okay, you're a second-time marriage or a. third-time marriage, and you've got. kids, and custody issues, and and and. support for your first wife, you. definitely need a prenup. >> What is the most important thing we. should have talked about that we didn't. talk about?

>> Mhm. Stephen, we've talked a lot about. money today. But money's just a tool. So, we actually haven't got to talk a. lot about is. using money just to free yourself to. live your best life. And you don't have. to have money to live your best life. Again, money is just a tool. So, what's most important in life? I'm going to say things that people. know. Health. Yeah, I started following you because of. all the shows you did on health. Love. People hold on to love way too much.

Gratitude. Being consistently grateful for the life. you have. Friendship. Loving your friends fully. And the last thing is fun. You know, does I I think people go. through life and at some point they stop. designing their life. My grandmother used to say, you got to. dream it, design it, and do it.

And she's like, and you're going to run. out of time. So, what I would say to anybody is like. this is you've got this one beautiful. moment in time where you're here. What do you want? And start working on that today. >> You listened to the episode with Tony. Robbins, didn't you? You referenced him several times in this. conversation. >> If someone were to ask me who is the.

greatest mentor and the greatest. influence in my life besides my. grandmother or my father, it's Tony. Robbins. So, I went to Tony Robbins seminars in. the early '90s. Back in the day when he. had an infomercial with audio cassettes. And I went to a program that he taught. in Hawaii. He had this big hotel called the. Waikoloa. And he did a he did an exercise. This is. so I It's like I remember like this is. yesterday. He said to this the room we. were in and there were I don't know, a. thousand of us in this room. He said, "How many of you have a dream.

that you're not working on?". And we all we all had dreams. He's like. And so, he got us into a peak state. And. he had us work on our dreams. And then he asked the question, "How many of you think you're going to. be alive in 10 years?". Everyone's like, "Yeah, I'm going to be. alive in 10 years." He's like, "Great. So, I got a question for you. Are you going to be alive in 10 years. having worked on your dream, hopefully gotten it, right? Done all the.

things I've taught you to do, you know, modeled the masters, got. yourself in peak state, learned the. pattern recognition. Have you gotten 10 years older having. gone through dreams. and maybe got it? Or did you just get 10. years over 10 years older and you let. your dream die? You let your dream die. And the just let. that sit. And then he had us go off in groups of. 10.

and share our individual dream. So, we'd. all written it down on paper. So, I. shared that my dream from this young. kid, financial advisor, I'm a guy, I shared my dream was to write a book. called Smart Women Finish Rich and teach. a million women to be smart with money. so they could protect themselves, teach. their kids, and help their family. My heart's pounding, Stephen, I'm. sharing this idea with 10 strangers, and. then we go back in the room. And he's. like, "How'd that go?" He gets us all.

ready and gets us back in a peak state. 10 minutes later, a woman comes, taps me. on the shoulder, and she says, "I just heard about your dream. My name's Vicki. I've worked on Tony's last two books. If you want to do your book, you're. going to need a book proposal.". You've done books, you know this. She's. like, "I can help you write a book. proposal.". I hired her. I start working on that book proposal. Later, I would go after the same agent. that Tony has, Jan Miller. She'd become. my agent. He'd write a cover letter. I'd get a book deal, and I'd start.

working to help millions of people. It started at the Tony Robbins seminar. And I go back to my grandmother, right? Dream it, design it, and do it. He gave me the life skills to do that. And I will tell you something about Tony. because you see Tony on all these shows, and people go, "Is Tony the real deal?". I Stephen, if I if I was with you and I. sent Tony a text, and I and Tony has a. lot of friends like this, Tony gets. right back to me. Tony's the real deal. I just went to Germany and took my older.

son, Jack, who's 22, to see him do UPW. in September. Could bring tears to my. eyes. Cuz I wanted Jack to have the. experience without me there. So, he was, you know, blessed Tony, sitting in the. front row. I came in on day three when he was in. the peak state. And I came in and I watched him. You know, I was basically his age, and I. thought, "God, you know, you You I I. went in and I gave him a hug. And I'm like, you just don't even know. this is just.

this experience that you're seeing. what you're learning today, if you use. this stuff, it will change your life. That's the power of Tony. And people go, you know, whatever it is, your podcast, your. events, Tony's events, my books, we're just catalysts. But God. God gave you a seed and a dream. And when we're the catalysts for like,

look, go do this. Listen to that voice. Whoever your God is, that soul that you. hear yourself saying, I have a dream. If. I only had 10 years left to live, I. would really hate to die with that dream. inside me. That's the dream you go work on. >> And since then, you've. done exactly that. You've educated. hundreds of millions of people through. your books, through podcast, seminars, newsletters, and thousands of media. appearances on how to do exactly that.

How to get financially free, pursue. their dreams, get hold of their money, so that they can live the life that is. destined for them. And that is an. incredible thing. And you've sold almost 10 million copies. of your books worldwide. I'm sure you're. going to hit that number at some point. soon. And. I guess you'll never get to see the. impact that that's had on so many. people's lives and how you've therefore. changed the trajectory of their. financial future, and their kids, and. their kids, and their kids, like your. grandmother did for you and your family. I highly recommend everybody go and. listen to that episode. I'm actually. going to link it below. So, if you.

haven't listened to the episode with. Tony Robbins, that's a great next thing. to do if you're still listening now. But uh David, I wanted to thank you. thank you so much for coming. And uh you. present a really interesting, different. perspective on the subject of money, which is. is hard to find. It's rare. Um but it's. very, very, very important. And. hopefully it'll be consequential for. many. We have a closing tradition, as. you know, um where we ask the next guest. the question left by the last. And the. question left for you is. interesting. If you had all the money. you needed to have to support yourself.

and your family, zero financial. worries, what job profession would you. be doing? Or rather, what would you spend your time on? >> [laughter]. >> That's surreal that this is the question. you're giving me. That that was asked before I got here. Like that's that's a god moment, too. Like that's meant to be. >> This is By the way, I'm not making this. up. This is all. >> So, cuz that's me. I have enough. I have all the money that. I need.

I have my health right now. I have my. time. And this year what am I going to What. What I want to go do my dream for the. year? I want to have an endless ski. season. So, at the end of the year ask. me did I ski somewhere every month this. year? I leave you today. I go back to Florence. for 24 hours and I turn around and go to. Verbier, Switzerland with friends. I'm. going to try to ski somewhere every day. every month this year. With friends and. with family all around the world for. fun. I did this as my last dream to help.

one more generation be smart with their. money. This is my final book. These may. be my final podcasts. >> And what you've done is you've updated. your smash hit best-selling book. That's. It sold millions and millions and. millions of copies that you wrote 20. years ago to make it relevant to the. current financial situation and world. that we live in. >> And my goal with this was a lot of my. readers now are in their 50s and in. their 60s, but they've got young kids. like I do. And I wanted this to be a. book they can put in their hands. >> I'm going to link the book below. Fantastic read. You've written several.

incredible books. So, it's I'm going to. link all of them below in the. description [clears throat] for anyone. that wants to grab a copy of them. The Automatic Millionaire, a powerful. one-step plan to live and finish rich. David, thank you. >> Stephen, thank Thank It's been great. I'mma to you how to get clear what you. really want, figure out what's been. stopping you, put the plan in place, and. teach you the most important thing. that's made me successful. >> I don't think people fully realize the. significance of how many of the most. influential people on planet Earth you. have worked with and continue to work.

with. What is the pattern that you. noticed in those people? >> So, I found four things with them. And. the first thing is.