Level 1: Foundations of wealth

Who is a millionaire?

Someone whose net worth excluding his primary residence is in excess of 1 million dollars. In other words, your net worth is the difference between your assets and liabilities

Assets — Liabilities = Net worth

Assets

An asset is something useful or valuable.

Liquid Assets are assets you can easily trade into cash in a short amount of time on the other hand non non-liquid assets are assets that can’t be turned into cash in a short period ex. Real estate and Vehicles.

Now that you have some idea what an asset is you must know what to focus on. There are three terms that are used interchangeably Wealth, Money and Status.

You don’t need to be confused between these three.

Wealth is having assets or money that is invested. Money is the medium by which we transfer wealth while status is the hierarchy where society keeps us in its head and it’s directly proportional to wealth. The more wealth you have the higher hierarchy you are at.

Two Paths to become a millionaire

1. Earn your way — This is by far the conventional and long way to pave your path to becoming a millionaire. You will have to accumulate — wealth through earning and maintaining a balance of at least $1 million in income. For the same, you will have to earn around 2 million in order to become a millionaire because around 50% will be taxed.
2. Own your way — This is the faster way that the new-age billionaires use. This is done by accumulating wealth through assets either by buying or building. Imagine you have an agency that’s valued at over $250,0000 agency you can sell it for around 4x its price and become a millionaire.

So, it’s upon you how you want to reach that number by saving, by building or by investing.

Don’t diversify

Okay, so this could be very controversial because most people think that you work on 5 different things you see what’s working and then jump all into it. On the other hand, I firmly believe that you must put all your soul, time and energy in one place in one work you are doing. Once that’s done you can then move on to the next one.

People who are the wealthiest have multiple income streams but they first make their wealth focusing on one thing not many.

This is the exact process you go through.

Uninformed optimism — You see a YouTube ad for dropshipping or dropservicing or you might get to know from a platform that you can earn a lot just by copy-pasting or taking content from other platforms and posting on others and you think that this sounds crazy and you become excited and jump onto it.

Informed pessimism — This is the time when you get to know that this isn’t as easy as you thought it would be or as told by those so-called financial gurus. You get to know things that you didn’t know about earlier.

Valley of despair — This is the time when most people quit. You find the work taking lots of your time and you lose all the excitement and interest. It is the same time when you find another exciting work and the cycle goes on and on. You again go from Uninformed optimism to Informed pessimism to valley of despair and the same cycle repeats again and again.

Informed Optimism —This is the time you start getting some initial results and you see a chance of you succeeding. You know all the do’s and don’t of the work and you know how to handle pressure

Achievement — This is where you have achieved your goal. You have outlasted 99% of people and have reached here. You can know move onto other work as you know about the journey and time it takes to accomplish something and because you know that you will accomplish the next work too and a cycle of achievement will be made.

You achieve goals by doing ordinary tasks for extraordinary periods of time.

The long game

Assume you have a pile of boxes you are given a 10-second time to stack it as high as possible; you will just stack one box over the other and make it high. For the same task when you are given 10 hours you will now make a proper base for the boxes and then build it on top of it.

This is the difference between short-term and long-term games. Always play long-term games with long-term people.

Level 2: Make a million

Finding a hungry crowd

If you are at Zero, then master a skill and find a hungry crowd to sell it to.

The market

Whether your offer is good or not you won’t be able to make it out if you are in a bad market. Find a market

Which is in pain — Imagine selling burgers outside a cricket stadium; when the crowd comes out at once whether your burgers are good or not they will be sold out immediately.

Must have the ability to buy —After you find a hungry market that is in pain you have to check if the market can buy or not. Ex. Making a paid tool to enhance resumes won’t work as the ones who are experienced might not need your tool and the ones who are inexperienced and need a job most probably will be broke so again they won’t buy your product.

Must be easy to target — Now you have found about a market that is in pain and can buy; after all of these check if they could be targeted easily for Ex. If you are into selling private Jet then you know who’s your target audience and you know that they aren’t easy to target.

Which is growing — Assume that you are in a market that not growing and is stagnant like Petrol bikes what will happen even if you are growing you are staying at the same place? On the other hand, if you are selling electric bikes then you will grow even if your business is stagnant.

Now you know how to make an offer.

Remember to sell it to 1 avatar sell 1 product and via 1 channel

Alex Hormozi

Channel — The method you choose to communicate your offer to your avatar [ such as paid ads on YouTube or cold outreach ]

Marketing & Sales

There are a lot of ways to market your product like

• Warm outreach — Outreaching people who know about your services and have shown interest in them.
• Content
• Paid Advertising
• Cold outreach
• Referrals
• Employees
• Agencies
• Affiliates — Getting businesses that provide similar services and have qualified leads.

Paying yourself

How much risk are you willing to take individually in your efforts of running a business?

Many founders and entrepreneurs prefer investing 100% of the money they get from the business without saving some for themselves, which could be a disaster. You must always take out some cash for your consumption and then invest the remaining.

Thanks for reading.

This is Navneet signing off from today’s blog.

Peace🕊️

• I got an internship because of a cold email ft. Clapingo
• Health
• I voted for the first time
• A letter to my future self
• 30-Day Manifestation Journal Challenge
• 1000 LinkedIn Followers Challenge
• 21-Day No Fap Challenge 2.0
• 21-day LinkedIn Posting Challenge
• I Went Viral On LinkedIn
• I lived in a dorm
• I watched Alex Hormozi’s relationship advice video
• I watched Alex Hormozi’s guide to haters
• I watched Chris do podcast with Jasmin Alic
• Patna 2.0: The Exam Diaries
• I got fired in 24 hours
• 21-day No Lie Challenge
• Successes