10 Things Wealthy People Overspend On (Part 1)

0:00I took an Uber and it was a $100 expense, which I again, I'm cheap. I don't want to spend $100. Yet, I got an hour back and my dollar per hour exceeds a hundred by a pretty big margin. So, spending $100, like if an example of an if an hour of my time is worth, let's pretend it's a thousand dollars. I paid 100 to get 900, that's a good trade. Um the ability to do what you want, when you want, with who you want, for as long as you want is the highest dividend money pays. Wealthy people don't buy They don't buy stuff and things. They buy time and they buy clarity. Welcome back to the Be Wealthy podcast with Brett Tanner. I am joined rarely do we get to do this, but I'm joined in studio. Studio.
We use the studio by the one and only Katelyn Mitchell. Katelyn, it's weird to be here with you in person. I couldn't be more excited to be here in person. Yes. So, today's episode's going to be the 10 things wealthy people do. But, let's talk about what the show's about. This show's about business owners, real

1:03estate agents, and investors getting free. And specifically, Katelyn, we help them with frameworks for their money,
Mhm. frameworks for their life, and models that actually help you get free. Today, we're going to talk about the 10 10 things wealthy people overspend money on. And we had a whole series on this. So, people should go back and watch episodes one, two, and three leading into this. I would highly recommend you do that. But, before we jump in, Katelyn, let's talk about why we're sitting here in this room with this thing. I don't know if Cole when he did this beautiful pan in, I don't know if you can see this majestic I don't know what this is.
this? It's like a designed drop ceiling element? I honestly feel like if it was on a pirate ship, it would make more sense, but I don't know what that is. But, the reason we're here, Katelyn, is we for our family office acquired this property almost 2 weeks ago today. Correct. And it is 285 acres. It's a golf course. Uh it's more than a golf course. It's

2:06three times a golf three times a golf. We've got disc golf, ball golf, and mini golf. I got to interrupt for a second, Brett. Most of our listeners may not know what the term ball golf is cuz you keep saying it and I got to be honest with you, I feel like I've heard a lot of terms for what you call ball golf, but never once have I heard the term ball golf.
Uh well, and here's the thing, right? Cole's behind the camera, so he may chime in. The thing is, Kellen, when you're going to have three kinds of golf, you've got to identify them. Okay. And you want to just call it like, you know, real golf real golf.
I I don't think it's real. I think you're just getting hypothetical.
to the other types.
I I think these other industries are really, you know, like mini golf, I think people are going to start going pro and I think that's important and that's going to take over. And so, it's going to take over. And so, how we got here though, you and I had did a whole week of traveling across the country.
We were at Family Reunion with Keller Williams. And we did quite a bit of speaking there at their event, which was awesome. This is in February of earlier this year. And then you and I decided to drive 2 and 1/2 hours or 2 hours north of there in traffic to a place what for a

3:10property that was going to auction. Right. So, we in an auction for those that aren't familiar, in most cases, what you're going to have to do is you're going to go in and you're going to have to do all of your due diligence, every single thing in advance. So, normally we have a uh listing that's on the internet, right? We would have something for sale, whether most of us are used to a home or a duplex. We go there. We can see the home. We can talk to people. We can get a feel for the property, but then we're really not spending money in doing a lot of time lift prior to going under contract, right? That's the normal way it's done. And in an auction, it's totally different. In an auction, you've got to do everything in advance so you can bid your number. Right? So, your ability to figure out the number becomes a skill. And that's how do I reduce risk in that transaction? You know, risk from the financing side, risk from the due diligence side, like property, environmental, or other. Then we got to go to the risk around the operational business efficiencies. And what can we create there? And then what's our blue

4:12sky? I mean, if this was working so well, right? Why are we here? So, in the auction, our goal of driving out there was to get all of the information such that you and I could go lock ourselves in our respective offices for hundreds of hours, and then figure out the number we would bid, and then what's the bet we're willing to place on ourselves. And just like any great gambling casino, we're trying to assess risk, right? There's a mathematical probability when you go to the roulette wheel of your ball landing on black eight, right? That's math. There's only so many slots the ball spins around, and there's an odds of it dropping in there. Well, when I look at a a business, it's kind of the roulette wheel, right? Except I can the more uh intelligent I am, I might have more numbers already placed on the wheel. So, the odds of success, my ball's going to fall in, my odds of success go up based on your and my ability to accept assess risk, and then put it in a spreadsheet. So, you and I go out there, we were here the first time probably a couple hours. We drive around the whole property, and I I want to hear your take. I I left with more questions than answers. A couple hours I think is generous. So,

5:15I'll paint it from my perspective. We drive up here, and we know limited information about the area. We understand demographics, population, job growth, you know, vacancies, and occupancy percentages in nearby areas. So, we know enough to be dangerous from like a Google perspective, I'll say. We show up on property, and I don't know, Brett, if it was just me, but you look around and you see 280 acres. You see about 100 units of individual apartments or what were timeshares at the time. You see four commercial buildings. One of those majestic beauties we're we're sitting in right now.
Well, exactly. Imagine the possibilities. And you see all of these amenities, three types of golf as you say, and you look at it and from my perspective, I could use a week to 30 days to actually go through and figure out what am I looking at.
On property you need 30 days? Correct.
Yes.

6:15I I agree.
to go in every door. I got to see what's behind the HVAC units, you know, think about the inspections we would do on a single family residential home during the due diligence. Then multiply that times 100 apartments plus the commercial buildings and a golf course. It's absolutely crazy. What we were given was shocking. We show up and this is the way that that it always works. For those of you who don't know, they'll open so there's a an agent here and and perhaps someone from the actual group that's selling and they're only obligated to open I'd call it two to eight doors of the apartments.
And obligated to really do nothing. I mean but you're going to see two to eight which Of the best.
I would yeah, definitely the ones we want the two to eight that they want you to see.
Yeah, in the good better best we're just we're hanging in the best.
On the prior resort we bought my joke was the fifth time I'd been there as like guys I don't need to see unit 200 again. I got it. You know you Love me some unit 200. But each time I'm going to see five I'd like to rotate the five. So you're in a group, right? It's you and like four or

7:19five other people you have no idea what they are. No one's even comfortable asking questions and sometimes they're asking questions that you're like why is she worried about the eyewash station? Now I've got questions. So you're running through this property and Brett it felt like they whipped us through here in one hour. So you see everything and I'm talking stables and you can't even go into the golf course and play. It's absolutely insane. You and I whip around there. We get the car and you said to me, you go, "Well, baller, what do you think?" Yeah, we're in. What would you pay for that? Yeah. So then, 250 more spreadsheet hours in and we have our number. We bid the number and so now we're here, we own it. And in a future episode we'll break down the different businesses here at Apple Mountain from golf to events to commercial to residential, maybe even equestrian, dare I say.
wildlife. We've got hedgehogs and otters And some say bear, we don't know about

8:21bears.

That's a loose
debate. We got wetlands and this afternoon Cole and I are going to get some fishing gear so we can take kayaks out on what they call here a pond, what I from Arizona, if it's four and a half service acres, we call lake. So but that's not why we're here today. So that's why we're filming in our studio.
in our studio but we will have the full story of Apple Mountain coming back to you shortly. So Katelyn, as I woke up this morning, before we jump into the 10 things that wealthy people gladly overspend money on, I had three thoughts in my head. Okay. And I know we've got our one-day event coming up here in a few days. And right behind us we're going to have 10 people come spend the day with us. They bring their It's raw, it's their biggest problem, biggest challenge, marketing spend. It's individual coaching one-on-one for your time slot. We'll do it in a group, we'll go play some golf, we'll hang out. So those people coming in and we were just I was polishing off the material we're going to go over when they're here. All right, if you've been listening to the show for any period of time, you know I run a a high-end mastermind for entrepreneurs that are looking to create a different outcome and create more freedom in their life as

9:23it relates to their wealth and their money. And that's what I want to offer you a risk-free opportunity to come check it out. We have two seats available at our upcoming mastermind. You can book a call with my team over at bewealthy.com, navigate to the mastermind section and book a call. We would love to have you at the event and check it out and see what it's all about. And so Katelyn, always think about it. When you think about making money, there's only really three ways to do it. And I think as an entrepreneur, we get running around and we think there's thousands of ways to make money. Mhm. You're like, "Oh my gosh, I could do everything." But like if you go to the core of it and say forget the business, we're we're a dentist, we're a car dealership, we're in real estate, we're an investor, right? There's not that many ways to make money. Right, number one, you sell more things. Right? So if I'm a real estate agent and my product is buyers and my product is homes and I sell them to buyers and sellers, I could sell more homes. Right? If I'm the dentist, I could find a way to see more patients. Right? Whatever business, I could just do more of the thing. Right? If I'm

10:24doing 10 units a day, I get to 20 units a day. Very logical. Just
Just increase in unit count.
Increase in unit And whatever that may be.
I'm going to I'm going to I'm going to sell more thing. Increase my widget count.
Okay. Second thing is I could sell more expensive widgets. In the real estate business, let's translate it. Like instead of selling the average in America of a county is whatever, $500,000 average sales price uh in Phoenix. And so I could say, "Hey, I'm only going to sell $1.5 million homes." Right? I'm going to go so I'm going to sell maybe less things, but I'm going to sell more expensive things. So your your profit or your income per widget would go up.
Gross revenue per widget goes up, hopefully tied to the same net outcome. Uh the other thing is right, you talk about you could sell more widgets to the same person. Okay. So that's another way to describe that, you know, would be lifetime value of the customer. Okay. So if I sell one home to someone, well what if I got referrals and I I expanded that outward? Right? As a dental practice, I might say instead of just doing a single line with them where I only do cav- I'm going to expand into the the crowns. I'm going to go to

11:27implants. I'm going to go to some of those things that they refer out. Right? I'm going to have more things I can sell that same person. Because your cost acquisition per customer remains the same, the revenue opportunity increases. An example, you know, outside of real estate agents saying, "Hey, I'm going to get more that way." Many of the agents we talk to, right, they're participating in mortgage or title or insurance. And so, they're just selling more things to the same person. Right, so we should all be thinking about it. But your money kind of works the same way. And so, when I think when you think about your money, there's only a couple ways to think about it. And do I take lots of money and put it in a single place, right? I could take a big amount of money and put it in a deal, or I could take a big amount of money and put it into lots of small deals. But if you really think about it, like that's kind of the case, right? I've either got a concentrated bet, or I've got a diversified bet. But we're making bets, however you want to do it. Early in my career, I would say the mistake that I think I made, and I think it's helpful for the audience, is I would argue that I made lots of They

12:29were They weren't diversified across different asset classes, but I made lots of bets that were reasonably small in size. They represented average priced homes in the area that I sold homes. So, my portfolio selling real estate in Phoenix, Arizona for the last 21 years to the And I my sales price for our real estate team forever was the average sales price of the county. You know, when you sell that many homes, it's just going to go to an average, unless you're trying to artificially inflate them. And so, my portfolio was represented by the average sales price homes in Maricopa County. And there was I owned lots of them. My original vision was to own a thousand. And I got to about 130 single family residences and realized I don't know that I want to have a thousand, right? There were things I didn't know, meaning when I got to a hundred, we all we had always done property management, but when we got to a hundred, the problem was now I've got people managing on my team, the managers, and the soft costs in life, which we talked so much. There's another podcast episode we filmed on soft cost. The soft costs are the shower time, the

13:32time you're thinking about it. You get the call on the weekend. Your staff's dealing with it, but we don't have the direct We're not taking their time and allocate it and go, "Oh, on my team, Melissa or Sabrina spent 25 hours this week on the portfolio. Let's build that hourly cost back so we can really see how that asset's performing." It's not a line item on the P&L. It's not a line item on the P&L. And the problem is you get all these little assets and you got all this management that goes into it and people think they're making money and what they don't realize, Katelyn, is that their current way of investing their capital, if they were successful enough, they almost would go out of business in a way. In other words, you're going to keep adding in these additional soft costs along the way and you'll keep adding in and keep adding management while the returns are keep coming down because of the management cost that goes into it. And yes, there's some economies of scale, but smaller assets just take more effort to manage. And the whole idea I I had a coaching call, you know, with my mentor uh and coach, which is just Gary Keller. And on one of our calls, I said, "Did I miss

14:34the part of your book where you you take the four houses and you turn it into the hotel?" Meaning The Millionaire Real Estate Investor? The Millionaire Real Estate Investor, which I've read the book Oh, it's You love the book.
It's 30 times or I mean, 50 times and and I must have missed the part of your book and he goes, "You did." And he literally pulls the book out instantly and opens the page. It's It's a simple page. It's just one page in there. And it's management units. And every asset we have, large or small, is one management unit.
Okay. So, if I've got 130 single family residences, I have 130 management units. If I have Apple Mountain, I have one management Still one address even though we do lots of things on here.
But it's one management unit.
And we could argue maybe if we said, "Hey, we want to get real technical, it's two management units. Got golf and then we've got everything else." But it's two, but for the same price point of this asset, you would have 100 single family rentals. You got 100 verse two, and the profit isn't even close to the same. In other words, the profit's exponentially more because it all works together. And so, point I'm making here, right, is I don't

15:37think you win by lots of diversified bets and lots of things. I think it's a good way to get rich. I don't think it's a good way to get wealthy. Okay. And the wealthy, Katelyn, where I go is I think you're going to place highly concentrated bets. Bigger deal, better deal, executed well, outperforms. Right? So, you got a choice with your money. Just like you got a choice with your income, do you want to go lots of small assets or a few large ones? And so, I think you just got to think about that. It's really hard to get ridiculously wealthy by owning lots of small assets. You know, you shared with me in one of your conversations that you and Gary had, you were having the same discussion. And he said something to the effect of or what you conveyed to me that was discussed was, "Brett, rather than putting things in a million different buckets, I'd like to put everything in one basket and watch the heck out of that basket. And if I put all my intensity into that one basket, that one highly concentrated, I know that I can make sure that basket's a success." And I think that's what you're saying here.

16:39So, you had a portfolio and a lot of Huntsville a lot of it was in Huntsville and you had a ton in Arizona, and it was a lot of different veins to watch. And now you're saying if I concentrated a portion of that portfolio and put it all here at Apple Mountain and focused on it incredibly, I mean, we're here for almost a month, right? We can't be more focused on it. We're literally sitting in it right now. You know we're going to have incredible success here versus just spraying across the country a ton of different assets. We aren't going to pay the same amount of attention across all of those assets that you have the ability to do here. It's right.
you're trying to say? I it's completely that way. And you know, you think about all the advice online, right? And I think that it's so easy to go on Instagram or Facebook and you see this person is crazy successful giving you advice. And I think the hardest part of advice, Katelyn, is people don't hear it to where the next step for their situation. In other words, the way you become ridiculously wealthy is by making these

17:40highly concentrated bets and being right. Yeah. Now, once you have all the wealth, you might choose to diversify it down because well, you're not growing anymore. There's That's capital preservation. That's a different strategy.
Totally different thing, right? Like so again, getting the first 10 million, 500 million, you insert your numbers for your goals and your lifestyle, that's going to be growth on the highly concentrated bet game to get to the big levels. Sure. Once you hit the levels and have a liquidity event or income is just radically high, you might choose to diversify. But to your point, it's preservation. And so I just wanted to start before we jump into the 10 things that wealthy people gladly overspend on to just kind of really think about your money a little bit, right? When there's your income, there's there's three ways to think about it. Through wealth, there's kind of only two ways to think about it. And so So let's jump into today, Katelyn. Broke people think rich people waste money. Like I I I hear that a lot and I'll hear someone in one of maybe our our coaching programs, our mastermind members, my private clients, and they'll say, "No, I'm going to go out and raise money, you know, some

18:41really really wealthy person will" They're probably giving the money at 6% cuz they have all that money. And I'm like, "Oh, uh that's a Days on Earth problem." Cuz I would tell you you know, 15 years ago I would have said something like that. Like well, they have all the money, they just want to see They just want somewhere to park it. Well, the place they would park it, number one, would never be in the most risky thing ever, which would be an operator that's unproven. Correct.
never even consider it. The second thing I think people might miss about the wealthy is the opportunities that come to them are endless. They're not the same. They're not buying the total market index. They might do some of their funds, but they're getting access to deals and deal flow like this. That would never normally hit the marketplace. And the returns are so insane. And it's actually less risk for them to do something like this than it is to bet on the operator that has a hairbrained idea that's totally unproven. With no financial controls in the operating agreement. They're not going to do it. And I think that's what people are missing. So they're telling themselves a

19:43story that oh, the wealthy, they'll just give like no, they're not. So in most cases, yes, other people OPM, other people's money is a place to think about it. Yet, I mean, we're trying to give insight on the show on how wealthy people actually think. Yeah. Like and I know early on when I went to, you know, I was thinking about raising money and that was my is they've got access to 12 to 20% returns that yes, have risk in them, but way less risk than the things that I was proposing. And being now being a more sophisticated investor who places money with other people, I look at it and go, the risk on this is astronomical. Yeah. To offset that risk, my returns have to also be astronomical. Otherwise, I'm not getting the correct risk-adjusted rate of return. Which is just a fancy way to say on a roulette wheel of gambling in life, I want more numbers covered for free that give me the chance that a ball hits and I can make money. I think the takeaway for people, what really made sense to me as you explained it, was on one hand, you know, we're operators. So sometimes we are those

20:45people who say, "Let me get that OPM, those other people's money." We're telling ourselves that story. "Oh, it'll be so easy, you know, everyone will lend it to me." But there are some of us who have been hit up with those opportunities or someone we know came to us and tried to raise money from us. And the deal seemed pretty good, but like where were they getting the rest of the funds? Wealthy people, when they're underwriting those assets or looking at that opportunity, are looking at it completely different than most people. So, if if you're given those opportunities, right? Like let's be honest, you get a ton of opportunities that come across your desk all the time. And you ask Melissa and Sabrina, myself, our team to underwrite them as they're coming across in order to see is this viable enough to throw on Brett's desk. And the question that we have sometimes is oh my gosh, are people really out there investing in this deal? They're going to get burned alive. And so, if you're given those opportunities to invest, or you're the person raising the money to invest, this episode's going to be really important,

21:48and a lot of these episodes are, of how to start thinking about how do you invest and how do you spend your money? So, whether you're the person raising money, or you're the person being raised money by, raised money for, whatever the English is that would be correct for that, these are different ways to think about it. Yeah, completely. I mean, just because it's your neighbor, your cousin, or, you know, your Uncle Tom, Uncle Tom might be awesome, but I don't know if he knows anything about the widget factory, right? So, there's ways to think about it. And what we need to cover in episode, we should make one on underwriting a deal and reducing risk. We should We should do that. So, so many today we've covered in episodes 1, 2, and 3. We've covered where the money actually goes, right? Episode 1 of this spending money series. Episode 2, we talked about how wealthy people make decisions. And we talked about the last episode was, episode 3 of that series, was what people actually refuse to buy. So, now we're going to talk about what they overspend on, and that's all about today. So, Katelyn, here is the easy way to think about this as we go through today. Wealthy people overspend. We're going to give you the top 10 things they

22:49overspend on, but it's four categories. Four categories in their life that I've seen time and time again the wealthy spend money on. It's time. Mhm. It's health. It's access. And it's relationships. Right? They're ruthlessly cheap on anything that depreciates, and I think that's important.
Yeah. Anything that doesn't have positive cash flows paid in cash, right? If they'll take as much debt as they make sense makes on their risk tolerance on an asset that'll pay for itself. Yet borrowing money for a car or a boat or finance luxury, I just don't see it. I see it in the fake rich, which lives on Instagram most likely. You know, I I I find it funny that some of the people Katelyn and our in our hard money lending business, we provide capital to them. Um they might drive some crazy car, and yet we're the capital. And they're funding their business. They're the hard money broker or whatever they are, and yet we're the ones actually funding the deals with capital. And I think it's kind of funny. I went about my cabin, I drive a '99 Silverado that's probably

23:51worth 2,500 bucks, old change, which is my favorite vehicle that I own, given to me by my dad, and I'll have that car for if I live to be 100, I'll still have that car. And yet the person looking cool in the McLaren or whatever it is is taking our capital, and I I just I couldn't the external view of it, if the world knew, I think they'd look at it differently.
Yeah. And it's not a judgment comment, but it's a comment that we got to quit looking at Katelyn what fake rich looks like and then what wealthy actually does.
A thousand percent. And you know, there's a book on that if you want to go read it, The Millionaire Next Door, which I really think should be redone for today's time. However, if you took the context of that book, which is it just looks different. Wealth looks different. It's the person next door you had no idea about. So, let's talk about my favorite one, Katelyn. You'll know this that I'm obsessed with time. I have been obsessed with time my entire life. Yes. I am obsessed, Katelyn, with how do you get more out of every day? And when I think about the day, I don't think about it just the 24-hour period.

24:54I really think about it moment by moment. So, Cole is behind the camera right now. Katelyn, Russ, her husband's here. Yesterday, we we worked all day and we went out and played golf. And it was Katelyn had played before here cuz she came out when we closed. This was I'd played here, but I didn't get to finish my round cuz we had some other obligations when we were in due diligence. Yesterday, I got to play my first full 18 on the course we bought. And that moment, right, ringing the most out of that moment was cool. Right, Cole's new to golf. This is Cole's fourth round of golf ever. And he played awesome.
crushing. Cole's on a trend. Most people it'd take them like 5 years to become a 20 handicap and Cole's going to We're going to get this down to sub 6 months. And but that is even also a lesson in time. Right. How's he going to do it in less than 6 months? Well, we got the right coaches. So, he's already getting coaching and then Katelyn's wonderful player and you're helping with that. And then we've got, you know, our GM Kyle who's also going to help him. And he's going to go hit balls for 20 minutes every day. Right, and that is a strategy. Some people are going to take their whole

25:55lives to accomplish something. 10 years, 20 years, you could be on the forever program. Some people never break a 20 handicap. And yet Cole's going to do something that takes people lifetimes, he's going to do it in 6 months. Sure. I think that example is the same way wealthy people think about time. How do I take something that's long, condense it? And so they they spend aggressively on buying back their time. I want to start there, Katelyn. And so the best investments I make today do two things for me. They save me time or they make things easier for me which creates more energy that I can put back into the time. And And I'll give you some examples. Some things might be a driver. And I'm not saying like a driver like you've got some chauffeur with a limo in the parking lot. Although, that could be valuable and and maybe something I should consider, but I'm not even talking about that. I'm just saying there's some days, Katelyn, I go to like our mastermind last week. I had some things I wanted to knock out. And I could have driven up there and I have a self-driving car, but I can't crack my laptop out until it reaches level three,

which I've plotted all that. But as I'm driving up to the keynote, I I took an Uber

26:57and it was a $100 expense, which I again, I'm cheap. I don't want to spend $100. Yet I got an hour back and my dollar per hour exceeds 100 by a pretty big margin. So spending $100, like if an example of an of an hour of my time is worth, we'll just use simple math. Let's Let's pretend it's a thousand dollars. I paid 100 to get 900, that's a good trade. I don't know if you remember this. When I when we were new in our partnerships together and there were a gaggle of businesses that I was helping you to run in Phoenix, I came to you and and there were a few more projects you asked me to take on. I said, "Brett, I physically cannot do what you're asking. I'll explain to you what my Wednesday looks like." And it was, you know, Keller Williams has that bold program. And so it was, I think we had someone in town and teaching bold, I think it was like Cody Gibson, right? And so I had to go to the launch for that, get that kicked off. And then we had a title company, I needed to go handle that. We had a market center over on the other side. We had a cryotherapy clinic that I had something I had to go to. I said, "Brett, I physically can't

27:59do it all. I'm a gamer, but like literally, there's no possible way for me to achieve this." And you said, "What if there was a way?" Typical Brett and question back, "What would that look like, right?" Teaching me how to think from a leadership perspective. And you said, "What if you just got a driver for the day? Just on that day, the one you're going to absolutely get annihilated on every single week for the next eight weeks, why don't you get a driver that day?" And I was like, "Brett, that's going to be like two or three hundred dollars for the day for me to have a driver." And you said, "Right. And then what amount of revenue will you be able to bring into the company from a management perspective?" And I was like, "I don't understand." And you said, "If someone driving you so you can launch your hotspot and work in the back allows you to achieve all of these things over the next eight weeks, it's an easy investment for the business. So, put it on the company card and absolutely do it. Then, I obviously I'm a little stubborn, right? I don't always learn as quickly as you would hope. I called you maybe 2 months later and said, "Well, I know I'm supposed to be at your office for a one-on-one, but

29:03I have a flat tire. I'm supposed to be at your office. I'm at the market center. I'm at a brokerage and I'm supposed to be at your office, which is about 10 minutes away. And I call you 15 minutes out. I say, "Brett, nothing we can do." I walked out, sent you a picture cuz I don't want you to think, you know, I'm taking the easy way out, but I'm also in a skirt and heels and it's going to take a minute to get this thing changed. Nothing we can do here. And I don't know if you remember what you hit me back and you said, "Help me understand. We're going to let a $15 Uber ride get in the way of us meeting and working on the businesses." And I said, "Man, I feel like an idiot. He's totally right. But I'm not unlike most people out there. You see the flat tire and say, "No can do." But you're saying, "Great, no problem. Time is so valuable. You had set aside this time and you said, "Let's make the the $15 investment into an Uber ride so you can be here. The tire will be there later." And time again, no pun intended, you've said, "Katelyn, look at time for

30:06dollars. How can we make more of our time and spend money on that?" But on the flip side, you are the most frugal person I've met about a lot of things. So, to spend $200 for someone to drive me around, no problem if it helps create more revenue for the businesses. High-quality paper towels in the bathroom, absolutely not. Yeah.
Absolutely not.
Golf club would be an example from yesterday.
No, we don't have to do that.
We Yeah, we we were playing golf yesterday and my golf club on the back of it, many of the fingers were ripped.
It looked like a bear ate it.
It looked like a bear on the back hand side, but on the on the forward side though, Katelyn,
missing a whole section, Brett. on the back, agreed, not on the inside. And so, my point is I don't look at that, and yet Russ, Katelyn's husband, was incredibly kind, had an extra glove, and he's like, "I'm not doing it for you, I'm doing it for me." Which was a great great joke, great joke. I put it on. It was different, but like I look at it as it's a perfectly fine glove.
Well, it's a consumable. It provides no long-term value. It's a consumable. And so, I
And maximize the output. But right, it's an example of how they think, right? So,

31:08I love your example on time. But I think everyone would go to where you were, which is, well, I'm going to text someone and I'm not going to make the thing. Yeah, we're in we're in trouble. Not going to happen. I I don't feel so good today. Well, this thing came up. And instead of going, well, how could if I had to do it, how would I do it? And so, forever I've gone like, well, I know of one thing, and you're in your skirt and high heels, you changing a tire on the freeway, number one, which you're highly capable of. I don't think you should do that anyway. I'm I'm going to answer you, Brad. I don't know that I'm highly capable of changing a
would try to figure it out, but I go, but like so was that, but you have Or I could sit down there and cry.
But but this would be like a better solution for everyone. We're like, all right, I have AAA. Right. I'm just going to call them. I make the joke, I'm going to throw my key on the dash. No one can steal it because they they can't It doesn't go anywhere. It's got a flat tire. And so, call AAA, Uber to your appointment, let them figure it out. 15 Come back here an hour later. It's all done. You're out of the in mission accomplished. But people let their personal lives, due to time mismanagement, get in the way of success.

32:10
That's exactly right. Morgan Housel has just got a great way to say it. Again, he's my my favorite author of the moment, you know, in the psychology of money, which is should be mandatory reading in every college in this country. Um the ability to do what you want, when you want, with who you want, for as long as you want, is the highest dividend money pays. And then I think that when you when you use this whole time framework, nothing could be a better way than what you want, when you want, with who you want. Isn't that your mission statement at Be Wealthy?
My whole thing, right, was freedom. I want to get free. Freedom of the work I did, how I did it, where I got to do it, who I got to do it with, freedom of choice. That's how I define this, right? And I figured out that spending my money to create more time, ultimately, if you have the freedoms, allows you to create more epic experiences with people you love. Totally. Which I believe, which is what everyone in this world wants. And so, you know, here's the contrarian, right? Broke people see a $200 an hour assistant as luxury. Oh my gosh, how could I ever do that? Wealthy people see it as $200 an hour to

33:14free up their $2,000 an hour brain. And I just think you've got to look at, right, how does that math work? So, you know, if we think about it this way, Katelyn, as it relates to time, wealthy people don't buy they don't buy stuff and things. They buy time and they buy clarity. The wealthiest people I know are the most clear on what matters and what doesn't. And they spend zero time worrying about people that they don't know and don't understand what they might think about them. They're unabashedly who they are. Mhm. And the more you can be your authentic self, right, and as it relates to your time, cuz how many out there are folks out there, Katelyn, do you think are watching this and they're spending their time based on how someone else thinks they should spend their time based on how they think they should spend their time? Meaning, if there was no external influences, here's a way to think about it. You have no external influence on your day and how you live your time, how you spend your time, Katelyn? Do you live the same day? Now, let's go to the your real world and are you making a decision because,

34:16"Hey, this is what I need to do for because of my my uncle. I need to do it because of this situation in my family dynamic. At work, um I need to show up this way." Can you give us a real example? Like, we talk about this all the time and it's something you really helped me with. You know, for years I was very concerned about how other people perceived my work product. That was so important to me. I really needed everyone in our brokerage, I'll use that as the example, to know I'm an incredibly hard worker and I'm going to I'm fantastic at getting things done to help serve them and give them the best possible experience at our brokerage. And I would run around the brokerage so concerned and so consumed that every single person there thought that I was fantastic. And I had great relationships with them all and I worked really hard at it. And you would constantly say to me, "Katelyn, why are you so worried

35:20about what XYZ thinks such that you would deviate in your day to accommodate them away from what was best for the entire brokerage as a whole?" So, I would constantly make decisions to make that person think that I was fantastic and it would compromise the integrity of the overall mission to please the one person versus serving the community or serving the brokerage as a whole. And you constantly would say to me, "Katelyn, you're running around trying to get every person to think you're great. I think you're great. They all think you're great. Why don't you just rest in that and actually get to work in the brokerage and do the work that needs to happen?" And it's so I love the way you described that. It it's you know, it's this whole thing, right? That there's just two score cards in life, right? There's an external one. How do others perceive us? How do others look at us? What do others think? What will they think if I do this? Which we were saying, "I've got to go be this way because I need them to look at me that I'm great." Instead of
properly serving them.
But it The best thing

36:21
on me. You're hurting you. The best thing you could do would just go be great. Right. Go grow the business. Go add value to them. And if hopefully in that they think you're great. That's That would be a goal. But I should
But that is irrelevant because it also if your value's tied up in what this person thinks. Meaning you have you have no control over how well you're doing cuz one day they could just be pissed off and say Katelyn sucks.
That's exactly right.
Katelyn sucks and it's a it's a
it's a disaster. Instead of I'm going to do what's the right thing for the business, the right thing for the customer. I'm going to do the right thing with a good person. You could follow, you know, my my religion which is called the good dude rule. I'm going to just in every situation dude does no gender. What would a good dude do? And so when you think about it that way Katelyn if if we don't play for this external scorecard, become who you are. We start making decisions around our time differently. A lot of people have pressure with their time from their families. And that could be the people that live inside of your home. Right? There could be pressure to, you know, insert societal thing. I've got to drop my kids off at school every day

37:23would be one I'll tell you from the dad's perspective. You know, my wife we're blessed that she works from home. And I've dropped my kids off at school probably less than 10 times and I have a 17-year-old and a 14-year-old and a 13. And when I have dropped them off, I see lots of people or I'll pick them up randomly at 10:30 a few times I've done it and I'm mesmerized by the amount of dudes in sweatpants 10:30 on a Tuesday. And it just hasn't been my life and there's no judgment on that journey but I would argue right? They their argument against me would be Brett, I'm a better dad cuz I picked up my kid on Tuesday. My argument would be I would love to see the quality time that was spent outside of the maintenance the maintenance time. Yeah. Where are the moments being created? You know, cuz that they there's a lot of talk out there that's like this and I'm like, well, have you ever taken your kid camping and just spent one-on-one or have you taken him on a short trip? Have you ever What is that like? You know, I just came back from Korea for for from 11 days with my boys and I'm in it for I'm parachuting while I'm in the middle of due diligence on this thing in the middle of it. I'm

38:24going to do the thing that matters with my time. But I had to get it back realizing that I'm not playing for an external That's right. I know my clarity with my time what matters to the people it matters with and I'm going to spend it that way. Another You have incredible clarity. I know it's a in all area and but it's the same with my friends. You know, when you think about time with your friends. Some people want I want to have 59 surface relationships with people that don't really care about me at all, but I'm really going to work a lot to hope that a lot of people that don't really like me really like me. Sure. And I'm going to put on a wrapping and a costume so when I go out they look at me like, oh boy, he's and that's in the last episode, right? That that you know, I I don't wear suits anymore. I burned them all. Um because I think they're costumes and I think they're costumes worn by people that want to pretend to play business. Sure. And I just that's how I feel. And so by the way, if you love dressing up, dress up.
Yeah. But just don't put it on for someone else. That's all that's my only issue with So when I think about time Katelyn I go, well, with my friends I realized I didn't want to have a million surface relationships. I wanted to actually Well, how do I define that?

39:26Well, I'm going to make it five people. I'm only going to allow five deep-seated friendships to enter my inner circle and I will go I'm only going to add someone to that mix when I I ask all five of those people to go hang out with me. If that's hey, go grab a beer on Thursday or go play golf or go do whatever. If one of if all five of them say no three times in a row, well, maybe I need to expand my circle to seven. Sure. I've never got there. So I'm going to stay inside of my circle. It's another example of time and But I think if if I'm doing that because I love those humans and all I want is more time with those humans.
Sure. I don't want more time with a bunch of people that don't give a about me and are only there to play for whatever they're playing for in some status game that is a never-ending losing game. And And so I just think And And I'm maybe being a little more raw today on this Katelyn, but I think it's important that people start asking, why am am my time in this way? If I couldn't post about it, talk about it, and do all that, would I still spend the time the same? That's the takeaway. So, in that section when you say the most important thing that wealthy people spend their money on

40:28is to get their time, right? To allocate their time in the right way. Well, now they have Now they have extra time, so they can spend it. Exactly. So, they buy their time back in order to spend it in the way that they want to. And the question we should be asking ourselves is, is this how I would spend my time if no one else would know about it.
If no one else knew. Oh, what a gut punch.
Yeah. And you go to your calendar and you realize I'm just This was a to-do list given to me by others. It was other people's stuff. And they shoved it on my calendar. They shoved it on my calendar. That's why like people say, "Oh, do you cancel meetings?" Constantly. Oh, yeah. Those meetings no longer meet my mission. Right? I'm very clear on my mission.
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41:30on. Number two, Katelyn, what people what wealthy people spend money on, health and longevity. A mentor of mine, who I believe is one of our listeners, said, "Brett, you know, if you're not spending 10% of your money on your education, you're not in the game." That was pretty I know exactly who you're talking to.
know exactly And the second thing she said though was really good. You also, Brett, if you're not spending 10% of your income on your health, maybe you're under investing Maybe you're under investing in your most valuable asset. And I went, "Ooh." So, then I had to go look, what am I spending on my health? In the last couple years, as you know, I've gone on this whole journey, and I'm into every weird thing that's out there, by the way. Every weird awesome thing. But, you know, what I think about this, I'll just give you an example, Katelyn, there's so much access to information today that it was never available before. And you know, like I'm we actually taught I taught some AI applications the way we're using it today, which is radically different than in than what people are doing through, you know, the cloud code side of things. But I've been able to use that to take my blood work and go in there and get better data. Right? So by being able to get my blood work done every 90 days, every 6 months,

42:33using a concierge, you know, medical provider, those things where I'm making those investments. Right? You know the story I had. I got to where I got tennis elbow and I don't play tennis. You know, what are the what an incredible And then I had an old shoulder injury from playing a bunch of two-man sand volleyball for like a decade, right? And then I had I fell off a trash can trying to jump into the trash can to pack the trash and it broke my ankle and I'm an athlete basically. But I had this these like pains, right? You know, you get to 45 and you're like, yeah, it just doesn't work like it used to. And so I I got to the point where I you know, I couldn't shake people's hands. In our events, you know, you always want to shake someone's hand. I got to where I had to do the whole knuckle thing and they thought people thought I was a germaphobe. No, I if I shook your hand, I would be on the floor. So I went and then, you know, I I had a tear. And so my choices are surgery, which sucks. It's like, man, it's You never want to have to have surgery if you don't have to. So I researched and they're like, hey, have you looked at PRP? You know, which is basically a version of stem cell replacement there. Your body, using the platelets, is going to heal itself. Did the injections. They said it'll take 6 months. You won't feel, you know, and then and now I'm completely pain-free. I have nothing.

43:36I've never Not an ache, not a pain, no creams needed. So that investment, the cost was $2,000 for the treatment. $2,000 to never experience pain and actually be able to shake someone's hand. Now, some people might say it's not worth $2,000 to shake people's hands. But what about when I would grip my golf club, it also hurt. And you know how like you're grabbing a chair, my arm it would hurt. I also had a I didn't realize I had some like stinging thing going on like in my arm would kind of go numb. It was a little odd.
I think the most approachable version of this is we literally we talked about this I don't know it was last week and you said, "Cailyn, you got to get in on this." You went and spent money on new insoles for your shoes and you stand and talk for 10 hours, 12 hours sometimes. So, you're up constantly standing and also like yesterday we spent so much time walking the property. You went and spent how much on new insoles for your shoes? Uh I'm embarrassed to say this, but I will say it. I think I spent $500 to get fitted because I was having some

44:38low back pain. But you would never pay $500 for a shoe that's a label. If you told me there was a shoe that's $500 and and someone bought it for me, I would number one say you should never give me this gift. I
But inside where no one sees it. Well, no one would ever I'm probably wearing them in these little gems right now. See, those are I those are
These are regular On Clouds but that's the these are I ripped their soles and threw them away. I have my insoles my magic But your On Clouds you're not buying those for the brand. You're buying them cuz they're black and they go with everything that you wear. Cool. So, you're buying those shoes not you you're not trying to you know I You know what I do wear them, Cailyn, because they don't need to be tied and they're effortless to put on and they are pretty comfy and then I put my insoles in it's magical. And it's magical. So, you're spending the $500 as an investment to ensure that your body, which I like to call the number one asset of the company, that you're able to stand, perform, take care of people, spend time investing in people, walking the property, doing everything to be as comfortable as possible. And that's the type of investment you're talking about, right?

45:39
But before, you know, I had all the things. I had Biofreeze and Advil and Tiger Balm and I was rubbing some on my back and getting and taking Advil cuz I would just hurt. And doing a lot of this.
Doing a lot Yeah, now I go who knew your feet go to your knees go to your hips hurt your back and you're like it took it literally took a doctor 4 seconds to tell me that. I go, "How am I 45 years old when I learned that that" but it's a great example. Didn't we learn that as kids? It's like head, shoulders, knees and toes, knees and toes.
I guess I just needed to go back to They taught me everything I needed to know then. It But I didn't do it that So, it's an example of an investment. But I'll hear, you know, my my private clients or whatever, master my members, "Oh, I've been dealing with this pain in my my left hip It pops a lot.
a lot. And I got to stand here awkward. If I stretch right, I'm like, "Well, have you ever thought about actually maybe fixing it?" And again, it it it's your life. You only get one of these bodies.
I'm certain of one thing, Cole, and and you correct me if you want to get your calculator out. Maybe you're going to need this. The death rate in America remains at 100%.
Correct. I'm I'm almost positive on that. We can we can fact-check it later if someone wants to Google it. And so,

46:41knowing that you only get one life, if there was something you could do that would improve your condition, why wouldn't you do it? Right? So, health longevity. I over invest in sleep. I'll give you an I'll give you a Oh. I am a psycho psycho for sleep data. You know why? Go do any level of research when you leave this podcast. I mean anything. And you say, "What's the number one predictor of health and longevity today?" If you said, "I'm going to get 8 hours of perfect sleep, the right REM, the right everything."
Mhm. As opposed to I'm going to get 6 and 1/2 hours of garbage sleep and run that out over four decades and go get some good data on it. You're going to realize the number one thing it it's sleep it's recovery of the body. So, why do we compromise that, Brett? So, a lot of times we get going too fast, we want to do too much, we don't want to invest in a better mattress. We hear like a sleep eight pillows. How much is a sleep eight pillow? $150.
Perfect. So, I I also have now subscribed to the sleep
Which I don't have one here. It was the

47:42one thing I forgot cuz I was sleeping on it the night before. I made a note, didn't fire my checklist correctly, and I'm here without my eight sleep pillow. And I'll be honest, We're going to be ordering it.
It sucks. Well, if I could get one here or my wife's coming out and it already it's it's it's on its way when she comes.
a thing. But my point in this is we constantly I see especially parents that are also business owners we compromise our own health and wellness for our kiddos and for our businesses and we wear down
for stuff and things to impress other people that you don't know about. Those three categories. So we wear down our body emotionally, mentally, physically. We put garbage in it because we're moving too fast. We cut our hours of sleep. We compromise all of it. Don't invest dollars in that. We buy the handbag instead and make sure that that we're there for things that we don't need to be there for that aren't meaningful and compromise our health constantly and it's the number one asset that we have. Without our health,

48:46without operating at the optimal level, nothing else matters. So I'll go let's I want to go to the sleep thing, right? So if you you look at my setup at home, I bought a eight sleep and I have version three or four. They keep updating the pod. So I'm on version three or four and I'm going to call the mattress cover. It goes over your mattress.
Yes, I have it. I believe it's three $3,000.
Yes. And on there you've got two So my wife wants it you know she her body it's going to sound crazy to say this today and I mean this is a very controversial topic but her body is different than my body. We just have different things, okay? And her sleep and I know this is super controversial that I we have different things and her body though is going to respond to things differently. Her sleep patterns are different than my her things. Like she want needs to sleep warmer to get optimal sleep. By the way, this eight sleep determines how you're sleeping, determines the REM, adjusts automatically using AI and your sleep patterns to get you the most optimal sleep possible.

49:49In addition to this Katelyn, my I have the thing that goes underneath it. So, like I can at night put it in a zero gravity mode when Taylor and I are going to watch a show together. I put it in zero gravity for a second. And I'm going to tell you it feels magic. In the morning, we put it up in like this up mode, kind of like a Think of it like a lazy boy in our bed. And that's where we do our morning coffee, right? If she's up for it, we get our morning coffee, we sit there, we're in our lazy boy bed talking to each other about our day. And I look at my sleep and I'm like, "How did I do? How did I perform?" Cuz I love to know like and then I think about What did I do the day before? Did I eat a little later? Okay, I didn't sleep as well. And with that data, I've engineered perfect sleep, right? For me. And I cuz I need more energy and I want to have a longer health. And I so I just I I want to anchor sleep as an example. And so, Katelyn, I'll see someone go buy a brand new car and and I'll see So, this whole setup for my bed, let's call it $5,000.
Okay. Five grand for a cover that go Not even the mattress. So, this would be if you could buy their

50:51mattress, even more expensive. I'm assuming everyone already has a mattress. I spent $5,000. Mhm. People would look at that and go, "I mean, I've heard people in our rooms go, 'I cannot believe this.'" It seems gluttonous.
You are just such a, you know, pretentious jerk to even think that way. Yet, the same person will go buy a boat they cannot afford. Finance Finance it over a 10-year period on a depreciating asset that adds no value other than now Now, it adds dividend value and now I'm not saying that moment where your kids wakeboard. I agree with that, but we can get that a different way. I would argue if you invested in your sleep first and then it work it gave you an extra hour a day of productivity and you invested that correctly, you could buy all the boats and crap you wanted later. Yeah. And so, I think when you think about it, people wealthy people invest in the number one asset. The only one that they can have, right? Like my fantasy team, Katelyn, for my life, I drafted Brett Tanner. And it's the only player I have in the game. Yeah. But most people act like they're going to draft someone else. It's like I don't get it. You're the tool. Why wouldn't you invest in you?

51:55I've invested millions of dollars in this vehicle to create better outcomes. Literally, I mean it's I do it all and you know I'm psycho and I and you're You're contagious. You turned me I know I'm so competitive with you. I tell you I'm a sleep athlete. I want to compare data with you. I went after Ali Nasser came and spoke at our our event and
Which everyone should go back and watch our episode with Ali. He is a beautiful soul. Everyone needs more of him but I had a whole debate with him.
I watch YouTube going at it over Yeah, who's who's sleep data is more and I'm an athlete.
my sleep data was on an American curve versus a European curve.
Which by the way he and he inserted another level that we hadn't even considered.
We didn't even know about it. We had to go worldwide on our sleep data. So, I agree. Investing into your health and wellness, it is one of the biggest changes you've helped me to do and I want to thank you for that. So, Well, it it matters. Right? So, here's here we talk about compounding and wealth, Katelyn. Wealth compounds faster in healthy bodies. Just does, right? It it does. And here's here's what I've got one for you. You know what, Katelyn, what you can't

52:56do an exchange on? You can't do a 1031 on your body. Ooh.
You can move your asset. You can go, "Hey, I'm going to go from this asset to that asset." And all deeded real estate works in a 1031.
Yep. I don't think a lot of people realize like this is all you got. You can't 1031 it. Michael Velasco at Exchangable cannot 1031 a body.
take you and put you, you know,
but he's not that good.
He's not that good yet. And Michael, something to think about for you.

So, health longevity. Wealthy people overspend there. Next, we'll go to where I I see it all the time. We talked about 10% of your money in your health. Now, we're going to learning and skills. When I look at the wealthy, the investment that they make is in themselves. Relentlessly in themselves. I would tell you that that advice from a mentor of mine, the year she told me that she she told me she was making about four and a half million dollars a year. I'm net income. And she goes, "Brett, do you know how hard it is to invest $450,000 annually in yourself?" And she goes, "It's very hard to do, actually." And she goes, "I'm crushing it." And here's the craziest part though. What do you think by doing that the odds

53:59of her going to making 9 million a year are? I would argue it's just a matter of time. Totally. Because she's putting so much investments in herself. And it's not like wasteful, like I'm going to learn a skill that's irrelevant. They're learning
basket weaving. You're learning the specific skill that is the thing that I can use to capitalize on my next opportunity. And they invest in it like crazy. I'm going to I'm going to give you two examples in my life. I wanted to learn more about paper investing. Debt tied to real estate specifically. Mortgages, deeds of trusts. How to own the paper. And it turns out there was two authorities in that space. When you really real. They've been doing it. And when I look for an authority, Katelyn, I'm talking to someone's been doing this 30 40 years. They've been through the cycles. They got a lot of gray hair like mine. I'm looking for the person who's experienced some market cycles. One lost. Right? They know it all. You know, like people that have the science, but more importantly the art. Okay. Science we can get done with AI

55:02today. Art Yeah, that doesn't quite work like that, right? That makeup of risk is different because of this other factor. So, I go around and I paid one gentleman $25,000. This was years ago. It wasn't COVID, right after COVID. $25,000 for one day of his time. It was my agenda. He didn't offer this program. He tried to get me in his coaching program, which I just I was like, "That's amazing. I I don't want to do that." I flew in for the day, and I spent all day. My I had some questions, and I was able to take a 10-year journey of what I was taking to learn. And as I was able to do it in 6 hours, I was able to learn what probably would have taken 10 years in experience. So, that investment and from that investment that day, I made millions of dollars in the debt space literally for that conversation. Cuz it was a it allowed me to collapse time and then focus on it. So, that's example one. Example two, different gentlemen I did the same. Paid him wrote him a check, spent the day my agenda. You were there for the second one. And so, my point I want to make to you Katelyn was we think about education and I want to kind of break down where I think it what it

56:05looks like. Number one, coaches. I see people and they're unwilling to make a coaching investment. Like they're like, "Oh, this is going to be really expensive." I'm like, "Okay, but we're trying to change your entire life." Right? If someone doubles your income I don't care what they I don't care what they charge, right? If they charge $3,000 a month, if they double your income over a year, and then next year you and they double it again, at some point the double becomes insane. Right? And it's a it's a great value. Masterminds, you know, we run one and I think, you know, I'm very biased in what we do, that we created the only mastermind of its kind that exists. Sure.
Cuz I went and traveled the world to try to find it and the room didn't exist. And I wanted entrepreneurs, agents, and investors in a room to talk about their lives, increase their income, translate that income into wealth into a passive income to get them totally free, and then have a group of people doing that are all talking about living epic lives. And that's a room that didn't exist. And so, we made it. When we first kicked it off, there was 10 people in the room and I'm like, "I don't even know what this is." Maybe it's just Katelyn and I just

57:07sitting here talking and that's wonderful. And it turns out there's a whole group of people that join us, you know, in our Be Wealthy world and we're blessed by that. But masterminds, right? Highly for that. Now, if I'm a CPA and you want to grow your business and your wealth and your money in that conversation, you'd be a great fit for Be Wealthy. However, there might be a CPA specific mastermind that would do that. There might be something very specific to that. Sure. So, then you go to What about books, conferences, mentors? You know, we're really talking about curated rooms. Right? A room, Katelyn, where the people in that room are all in the same space. Naval Ravikant, who has one of my favorites favorite books, is The Almanack of Naval. He didn't even write it. It was based off his Twitter posts. We could We talked about it in other episodes, but here's what he says. Specific knowledge combined with leverage is how wealth is created. Sure. Specific knowledge, find the lever point, and we We talked about leverage in many different forms, right? Is how you actually create

58:08wealth. So, it is an expense. It's upgrading your income engine. And so, I just think that people got to think more, Katelyn, about how do I go and get really clear on what my opportunity is, and then what's the specific education for the breakthrough? I also think of layering them in the way that you do. So, you always look at it from There's a lot of information we can get right here on these computers, right? There is a ton of information available on the internet. You typically, I see you, you start Number one, let me research it. You use the phrase, "Let my fingers do the walking," right? And you get on your computer, you do an incredible amount of research. Then you start talking to people around you when you're trying to learn a skill. Get some additional information, and then you layer it this way. You say, "What are the books that I need to read?" And then your turn, like a psycho, you go and order every possible book on that specific niche. So, you get really hyper-specific. I want to learn this skill, this strategy, this tool.

59:12Order the top books on it. You read through those as quickly as you possibly can, and say, "How can I pay you a fee or service to help me move faster in learning this skill, this tool, the art of that process, because they really are the experts. So, you've layered from general information you can get online. Now, I'm going to go as deep as I can in the written word of what's available in books. Everything you need to know is probably in the library, right? And those two things to start are super inexpensive, right? The internet, I don't know how much the internet costs. It feels like it's free if you get a Starbucks coffee, right? Number two, the books. You can get them at your library. You can also do what I've started doing when you go to thriftbooks.com or any of those sites, you can get a used version of the book typically for three or four dollars. Cool. Buy all of those books. Then, save your money and reach out to that expert now. And now pay for the art portion. So, the science portion can be inexpensive. Then, pay

1:00:16for that premium, that person who can get you there faster. And then, once you're on that journey and now you're doing the thing, how do we get in the room with the other people who are doing it at the level we want to be doing it at? So, now you buy into that room. And I've seen you do it from having the largest real estate business, you were number one in this in all of Arizona, number two in Keller Williams, number nine in the entire country. So, you climbed through to do that. Then, you pivoted and said, "I want to be a bank, right?" And so, then you became a a very large private banker doing hard money loans. Then, you said, "Now, I want to invest in long-term debt. How do I go as deep as possible in that?" And you've used it from your health to your business to your investments, and you've always layered it that way. Let me start my fingers doing the walking, totally free. Maybe you have to buy a Frappuccino or something at Starbucks, but internet's free, guys. All the information's there. Then, let me do the books. Figure out who the expert is, cuz I don't just want whoever's on social media saying pounding their chest saying

1:01:18they're the expert. I want the real one who knows what they're talking about. Then, I'm going to pay that person for their time to get me launched faster, and then I'm going to put myself in the group with the like-minded people to help me scale. And you've done it time and time again, and I think there's a science to that that people can follow and take action on. It um well, what you just described is so great, and everyone should go back and go back 3 minutes ago and listen to that again what Katelyn just described. But what you just described was building a model. And so, my coach, again, Gary Keller is a model builder. He would That's how he would describe himself. And I never really knew what that meant, and you know, I've been in his world a very long time, nearly 20 years. And I I figured it out about 5 years ago what he meant. It took a long time to be like, I don't know I don't Gary, I don't have a model. And the problem is I wasn't doing enough of the right work. I was doing wide-angled skill building instead of niche skill building, which is what you do. You build a model. So, the reason I read the 20 books is I want to build a model around how the thing works. The first book gives me this is a way to do it. So, you read all the things that are for And so, you pretty quickly you get

1:02:21on a book five to 10, you've got a mental model. Then I go I want to read the contrarians. Against my model, what are the people that say against it? Interesting. And then I'm kind of weighing, do I agree or disagree with that? And that might change my model. I might go deeper there. And in the end, I want to wrap around like What How does it work? And then I kind of install that in my brain, and that's how it works. I mean, if you look at Well, the wealthiest people I know read 50 books a year. The people that I know that are poor read sub one. Now, I don't under- Maybe it's just the books Something magical happens. Um one of my private clients that is having the most radical change in his life
Oh, I know exactly who you're talking about.
it. And he's So, I ask him he had it I mean, his income went up, let's call it 300% or something like I mean, the results are it it it like doesn't fit on a spreadsheet.
a long period of time. I'm not giving it I'm talking 12 months be the next 12 months.
Correct. And I said, if you were to give me the three reasons why you think it changed you know in coaching you know what would it be and he goes he he had a lot he goes I could tell you the first thing I read

1:03:23the most books I've ever read. Uh-huh. I he goes
from zero. Uh went from three a year and he goes I um Brett I I read 36 books last year. Mhm. From three. Wow, it's a pretty big increase, right? You read three a month to three all year, right? And he goes the level of knowledge and skills that were created allowed the outcome to happen. Sure. But you know again that the information you need it's not buried in the Congo and we got to go get on a boat and a plane and the thing it's in a public library for free and yet people don't want to access it and so the wealthy they look at it differently they spend money on what they value and they realize that skills compound and stuff doesn't. Mhm. Right? Stuff just doesn't compound. Again the whole idea I talk about compounding a lot when I do a one-day event because everyone like how does give me an example of compounding and everyone says money and I'm like okay it does 34 other things. What are other things that compound? Because we all think it's just money. Decisions compound.

1:04:25Building the right model for your life compounds. Your relationship with your partner. Oh my god, from your partner to your kids to your friends those compound. And so if you start thinking like okay as skills what is the compounding skill I could learn today Totally. that over the course of the next 20 years which change my entire life. Now if you're playing a game Katelyn where you don't believe you're going to be here in five years then I guess have your YOLO moment and and it doesn't matter what you do. But if you're going to be there in five years which all of our listeners are what skills would benefit you five years from today? And being a dumbass with your money and your time is not a skill that's going to be helpful. No. It's just not. So all right Katelyn we got to move on to four. Okay, what's number four?
Number four is kids education and exposure. I think when you think what the wealthy spend money on, I don't I don't hear this talked about yet. I could tell you when I look at my budget, this is not an expensive. Um, and I believe that, you know, parents with kids should not have a one-size-fits-all

1:05:29idea to education. My kids go to three different schools. Meaning each kid's individual. So, why would I go, "Well, you're all going to do this thing." Well, that's illogical. Makes no cognitive sense. What if this person wants to do something different than this person? They're three different humans. Yes, we're their parents. But, we're going to raise them as individuals cuz the world is going to recognize them as an individual. Sure. And I don't think parents think about that. I mean, I don't When I have conversations with parents, they don't. They say things like, "We're a baseball family."
We are going to We're We're a We do this. We're a baseball family.
Johnny hates baseball. Have you talked to him? I've talked to him and he is dying. Johnny wants to play chess. Why don't we ask Johnny what he wants to do? It's a wild idea. So, you know, my oldest happens to be gifted. I think the first thing is we have to do an accurate assessment of what we have. I mean that in terms of a human being. Like, my oldest son is gifted. That's not what I believe. That is what has mathematically been proven based on standardized tests compared to a peer group. Sure. So, I asked the school. They're like, "He scored the score and it's very good. He's very I go, "This is when he was like in junior high." And I go, "Okay, um how many people in

1:06:32the whole class out of whatever the 500 kids got that score? I mean, is he one of 30?" And they were like, He's one of one. One kid got that score, Mr. Tanner. I said, "So, out of 500, he's one? Okay, well, that's That's relevant information."
That's different.
well, "Son, what do you want to do? Maybe we should get you in a more, um, an environment where the academic competition's higher. There's a higher bar Mhm. for him." And so, we took went to send him to the number one private high school that didn't happen to be located by my home. It In fact,
It In traffic, it's 45 minutes away. And I'm sending a somebody that is
there. So, I hired a driver to drive my son to the school to get the education and then you part two of it is like I want to put good people around my kids. The second part is education and exposure. Mhm. So, I wanted him to have exposure to positive influences. So, you think I used any driver? No, no, no, no. A gentleman that you know, sometimes when I want to gain my time back, the

1:07:34drives me around is the greatest human ever, Mr. Dean. I asked Mr. Dean if he would drive my son and I said you can't out you can't use anyone else. It can't be it has to be you. And I wanted Mr. Dean to do it because Mr. Dean's wise and I want to cuz I'm riding with him, I ask him questions. He's very just a wise human. He's he's just so like I get so much out of my interaction that that's what I want my son to be around. So, now I've got him driving and I knew what would happen is they would start bonding over time. About 2 weeks in, Katelyn, I get a picture. They're backed up at a pizza place. The back gate of the Suburban's down and there's a Dean sends me a picture, a selfie of him and Cooper having a slice of pizza. So, what was the point of that? I invested in education. I created exposure. I created some extra It wasn't just I was figuring how do I get him from A to B? How do I get him from A to B and change the way he's thinking while he's driving from A to B? And so, it's an example of an investment that the wealthy people are spending money again, it's not on crap and cars and things and stuff. Is that a compounding? Does my son receive compounding benefit for his life as he changes his education, his

1:08:36exposure? So, you just think about it, right? So, wealthy parents, they're not buying status. They're buying exposure to people, environments, and decisions otherwise their kids would never see. Wow. And we've got to do it better. I mean, Buffett does it better than anyone. His kids, Katelyn, they didn't they didn't inherit a billions. They did not. They inherited access and the habits that came that came with the room they grew up in. Interesting. Buffett didn't upgrade his like, you know, he he only got a jet, which he calls the indefensible. He did it only because he needed to get to A and B more efficiently. It wasn't a look at me, look at me. He He actually hates the part of it. He doesn't want to use it. It's just the way to get from A to B is too inefficient for his dollar per hour, so he had to do it, right? So, you know, the cheapest environment with the longest compound curve is your kids environment from age 8 to 15. You can make better investments in that period of time to alter their futures. Totally.
You know, Taylor and I are in the

1:09:38journey of trying to raise three super gifted humans that are going to do well and add value to society. And I just don't I don't think people are thinking about that way. You're not paying for school or you're not paying it that way when you invest in your kids. You're paying for the next 60 years of who they become. And I think if you start thinking about your kids education as that investment, it just changes the way you think about it. Anything you'd add to that or or or tweak as you I don't have kids. Um I do see a lot of people around me and the way that they choose to raise their kids and and I've never thought about it in the way that you just shared it. But it made me reflect on a few things in my childhood and how my dad chose to raise us and my mom chose. And it's interesting cuz they had three. I mean, you you know a little bit about my siblings. Both of them are brilliant. Um my brother is not athletic, but he's unbelievably intelligent. And my sister was just she's always just been good at everything. That's just who she is. And

1:10:41then the two of them would compete academically and um in education and they were each other's um pace cars, if you will. And they would push each other constantly. And then I was a kid that was just totally different. But I had I loved to play sports, I loved to do things. It wasn't I just wasn't academically like them. Um but my dad found that I was really good at math and I loved math. And so he got me in Kumon. I always make the joke with you, I'm a Kumon kid. And so he would pick me up at school, take me there, my mom would take me there and I'd be doing all my math, I'd be doing my math at home at night, he'd be grading it for me and I and he ends up getting me in like the math Olympics for a few years and I became Brett the term a mathlete. But he realized what I wasn't was what my brother and sister were, right? He realized that but she has this one thing that she's really great at at school and she like loves it. Give her more arithmetic and math. Like long division's her thing. Let her go nuts at it. Or golf was my thing. Let her go

1:11:43nuts at it. He wrote raised me individually and then raised them individually and I I never really quite realized it that that's how he and my mom chose to invest in us and you just said it so I go, you know, my dad's no longer with us but I owe my mom a big thank you. They invested a ton of money into and time into raising us individually in those ways. I I'm reflecting on it going, my gosh, it was a lot of time and money. So you were raised um I I think your parents well first of all they did a world class job you got three incredible people that came out of that. I'm I'm a fan of them. And when you look at it though, I would I would ask you to look when you see today's world and how people are raising kids.
Mhm. And you contrast that to the way you were raised. How different is it on a pendulum swinging scale? Uh uh polar opposite to to how I see the majority of people. I won't say everyone. Uh I would argue cuz I know a lot of the stories. Uh I've never even heard of things like that, right? Some things sound when I hear them and we're going to hear

1:12:45something sounded brutal. Mhm. Something sounded hard. Yeah. It's a high bar.
High level of accountability.
High level of but in that there's a lot of love and beauty and there's all the other it swings both ways. What I see today is the kids get everything, they learn nothing, they're ungrateful, entitled. And I think when it and it comes to this whole invest in your kids I hear a lot of Brett, how do you raise wealthy kids without being entitled? I get that question when it is related to kids, probably the first question in a room I get. And the first comment I make is I've actually seen more entitled poor people poor people's kids that I have wealthy people's kids. It's interesting.
And the and I get the rooms just, you know, now ready to throw pitchforks at me. But money doesn't create entitlement, how it's delivered does. Mhm. And so you you raise entitlement, you create it. Because I haven't raised entitled kids and we my kids have everything. And and we've done it very intentional. And I get to spend time with their friends and many of their friends are very entitled. And it's interesting.

1:13:46Cuz they would have less resources than us as a family and there's no judgment in that comment, but you would think they would be more grateful for the epic experience we're having and they're less grateful. That's so interesting.
kids have experienced the same thing many times. My son yesterday is at our cabin, okay? So we were you know, you and I were driving, I made it he it's first time up there by himself. And his text to me I'll I'll read it cuz I think it's so cool. He's been to this place a thousand times. I mean it's we basically live there. It's legendary up here, I love it. I love it up here. I'm like, how cool is that? So we've been a thousand times, yet he's with with some of his buddies. I'm curious if they think it's that cool. There's no judgment in the comment, I just think it's interesting, right? It's all data. So when you think about your kids, you're paying for who they become in 60 years. All right, Katelyn. The next thing wealthy people spend money on it's one of my favorite areas is their advisors, their trusted advisors. And most people how they do their advisors, let's use your CPA. Okay. I'll go, how long you been with your CPA? And they're like, I've been with him 20 years. I'm loyal

1:14:48as a dog. I'm loyal, you don't understand. I go, cool. Have you had any growth in the last 20 years in your life? Have you changed? Oh my gosh, I mean, I was got out of college, I was making $22,000 a year, and now I'm making $500,000 a year. I was like, wow, that's incredible growth. Did your CPA go through the same transformation? Did they grow 25x? Cuz if they didn't, you might have outgrown that advisor relationship. Interesting. My first CPA was my mentor. Took a young kid at 19 that was flipping books online, which is a conversation for another day.

And brought order, leadership, risk process. You know, I was just grip and rip and buying jet skis and boat, I mean, just I was a knucklehead. And he was like, hey, we need to get a P&L together, have a plan, and you know, there was just Now, as I grew and became much more um successful, he'd grown a lot, but there became a point where I was his biggest client, to say, right? I If you're the biggest client for your

1:15:52advisor, you're with the wrong advisor. Like, I want to be, honestly, with my CPA, the person that has the least amount of money for the returns he's filing, cuz I want the benefit of what the really, really wealthy people are doing. I want that benefit to trickle to me. Mhm. Not that I don't love my benefit trickling down, but I still need to get the benefit. And so, I think most people, Katelyn, are picking their advisors based on being familiar and being comfortable, rather than being the best. Sure. And the way you win the game of life is by assembling the greatest team. It just has always been the same, it'll always be the same. That team is starts at home. How's the best team there? Then it starts with your work, how do your people there, and then it goes to your advisors. And we got to assemble teams, right? Throughout our lives. So, what should these advisors be? Okay. So, let's break them down. One, the CPA. I'm going to do a one and one B. One B could be your tax strategist. My current CPA started as a strategist. He said, "I don't want to file returns. I'm not doing it. I want to provide the the art. Someone else can count the beans and do

1:16:55the science. Yeah. Um cuz actually popping the numbers in your return is very valuable and a thing, but we're like 9 months away from AI being able to just pop those in there. The art of where they get popped in and the different schedules and how we can approach things and you know, how 199A and not to get in the weeds on taxes here. That's not the point. That strategist might see it differently. And so everyone here, the action step for everyone listening this Katelyn or watching is they number one need to go take their tax returns and go to three different CPAs. Ask the wealthiest people you know for referrals. They could be in your By the way, the best CPA or best provider may not be in your market. I actually uh I'm trying to think of my council. I've got a few of my advisors will go there. They're located in Phoenix. They're like but they're not located in Phoenix because I'm in Phoenix. They're located in Phoenix cuz they're the best. A a lot of my people are working here in Georgia or in Atlanta. I didn't have this crazy cool thing where I just love the music scene in Atlanta and I thought it'd be cool to get all of my trusted advisors here. I go I came to Atlanta because they were the best.

1:17:58And so you should go take your your tax returns for 3 years. You should shop those and find what can you do better. What am I missing? And when you're taking your tax returns to this new person, they're now trying out for it. They're going, "Katelyn, here are ideas I have for you." Right? I'm not You're not my CPA yet. You're trying out to earn my business. So you're going to find all of the ideas and the juice here that maybe my current person is just overlooking.
for the job again. It Right now, most CPAs I mean, I always ask this question, which is how are they paid? Cuz typically compensation creates alignment. And so they're paid based on how many the way they make money, we covered this earlier in the thing is, they sell more widgets.
How many widgets can they do?
How many tax returns can I do? So, their goal is to do the most tax returns in the least amount of time. Sure. It's not to do the least amount of tax returns the best to save the clients the most money. Because if they save you a dollar, they don't get the dollar, they get the same $1,000 to file the return either way, or whatever they charge. So, my point is, so we are not aligned fully, which means Katelyn, you have to be the steward of

1:19:03your own taxes and understand it. And if you say, "Well, taxes are hard and complicated." Cool, you're going to overpay your entire life. And quit bitching that taxes are too high. I used to say that. I think that taxes are too high. No, Brett, you've spent zero time investing in your education around taxes, so you don't understand how the code works, and you're not able to maximize it cuz it's a set of rules that you could apply to pay lower tax. But, wouldn't that just very easily tie into number three, investing in learning and skills? What did you do 10 years ago? You said more
every tax book that exists in publication, and I I hated it. And I did it because it can't be that hard. I was pissed, and I was angry, and I read them all, and then I went, "I got it. Now I can go to any CPA and go and ask the right questions.
I'm not as good as them, but I have the armor and the arming to go in there and go, "Hey, I know a little bit about it." Which compounds every year for you. Is that fair?
I I It's it's been a complete game changer. And so, here here's the thing. Wealthy people will pay 50K a year to have their taxes filed, but they will complain about $8 guacamole

1:20:05all day long. Yep. Why? The guacamole call, as cool as it is, does not compound. And if any of our listeners, you want to comment and tell me how it compounds, I'm down to take the the argument. It doesn't. Guys, that was not a random That is literally Brett's Brett's saying wealthy people that That's a very specific example that I've been a part of. You will absolutely pay 50,000 to get your taxes filed correctly, and you do it. But, you do get a little upset about the $8 table side guac.
I go somewhere and they go I'm like, is this eight $12?
It's one avocado. I But, you know, now what what I My point we're making here, right? You should be very worried about the one-time expenses that don't compound.
Yes. So, it's not contradiction, that's clarity, right? One bad estate plan costs more than 30 years of CPA fees. People don't look at it that way, they're investing in stuff and things. Not time, skills,
Aw, so so true.
All right, next one. You need an estate attorney. If you're going to be wealthy, well, first of all, everyone leaves a legacy. Everyone needs

1:21:08the basic documents, will, health care power of attorney, medical power of attorney. Everyone needs the basics. If you have wealth and you care about how the wealth you has have acquired, how that's going to be distributed and you want to say in that, you're going to need to make some changes. Yep. And so, an estate attorney takes your ideas and your wishes, and there's a variety of structures, Katelyn, and we're not going to get into it, the different trusts and dynasty trusts and then they just make up names. It's like, this is a double black diamond obsidian and you're like, what that doesn't mean anything. I mean, they just use buzzwords, right? Like, you know, it's like, you know what I mean? Like, you like generation skipping and that's a kind of a thing. But, the point is, in a trust, you could figure out the way that conveys your wishes in the way that you want it.
Sure. And you likely care about people or causes. And do you want it to go that way or absent of that, do you want the the state to decide how your wealth is distributed? And there's there is estate taxes based on how you play this game. Yep. And so, I always hear people complain about the wealthy not paying enough in taxes.

1:22:10They're following a playbook that everyone can do, right? It's not illegal or they'd all be in jail. And so, if you understand it, you understand that it's a playbook incentivizing you to take certain actions. So, you make your estate marry up. Now, you you may need I've got The the one's kind of complicated, Katelyn, but going to go around to their financial advisor of sorts. Okay. And I don't like to brag, but, Kayleigh, I think I've got more financial advisors fired than anyone else. Like, they think I lead the league in it. Because when I teach across the country, I tell them that I don't know that I like that person advising me. And they say, "Why?" And I go, "Well, how are they paid?" Well, they're paid based on the products I buy. Then I hate it. Their advice is going
Why do you hate that? Um, because I don't have alignments. Okay.
They're incentivized to sell me a product that benefits them that may not benefit me. Interesting.
And so, I would never I would immediately go, you're very similar to how I do it. Anytime that there's money on the table and it's going to a party, I want to know what they're getting and why. Cuz I want to know how the incentives work. Cuz if the incentives of were misaligned, if you and I are incentives in business, you are aligned and you are

1:23:12paid on the net profit of the companies you oversee. Correct. There is so much alignment in this, it's wild, because I want more profit. But if I paid you off gross
revenue, as an example, I'd spend as much money to make as much money as possible. Grip and rip.
say, "I don't care about the risks." This would never be you, but I'm going to drive top line revenue because I'm paid off gross revenue, I don't care about profit. And we would become extremely unaligned very quickly.
Charlie Munger has an entire speech on this about incentives driving human behavior. So, you have to know, either consciously or subconsciously, it will always drive it. Are we equally aligned in what is being accomplished? And fees associated with your advisors is the biggest biggest thing to look at. And again, I'm not anti the finan- but there's an industry in the financial advisor world called the fiduciary. Okay. Tell us what that means.
Uh, they're not paid by selling you stuff. They're paid by the hour for the advice they give. So, they're always going to Now, they're going to give you the best advice possible because you're going to

1:24:14they're going to want you to come back to get more advice. So, it's ring ring. First question's asked, are you a fiduciary? For what they're going to Yeah, go go greatest fiduciary. Then you you're going to go in there and most people's financial worlds look like junk drawers. And I don't mean that it's crap, Katelyn. If I was to pull out your junk drawer at home, I bet you got a tape measure and some scissors and keys and but it's it's not junk.
weird is it that every single person listening on this That same person
has a junk drawer in their kitchen? Who trained us all to do this? Or their laundry room? I've also heard a lot of people say that. It's in
one in two places. I got one in the ca
cabinet. Yeah, in my cabinet and in the laundry room at home and in the uh kitchen. And so but your financial world, Katelyn, looks just like the junk drawer. Mhm. You've got this weird life insurance policy that I don't know what it is cuz I was sold by someone I didn't know what it is. That's in there. I got a weird annuity. And then I got this weird insurance policy. Someone said get an umbrella but I I don't know what the hell that means. I got that in there. And so I've got all this stuff that no one actually went through it and said, "Hey, Katelyn, did you know you're covering the same thing three times?" And so you're paying $700 a month and

1:25:17for nothing that actually wouldn't work. Could we take the 700 put it over here in this other thing that benefits you and you'd go, "Oh my gosh." Well, that's what a fiduciary might do. Interesting.
They're going to be a guide to come alongside you to look at your world. I love it.
So, again, in all of these people, how are they compensated? Do you have a line on your insurance broker? If you're doing residential stuff, number one, you got to be you need to pay attention. It's hard today. If you're doing commercial, it's impossible. Uh I didn't understand the commercial world and we've got a new uh person we're very excited about that came from your world. So, thank you. Um but that uh that broker becomes a part of your trusted advisor team. Your wealth team. And regardless of the wealth you have watching this, every one of these roles you need in your life regardless of where you're at. Totally.
a CPA, a state attorney, a fiduciary, an insurance broker. And then from there, right, we might get more specific in other people we need for our wealth team depending on where we're at. But I want to start there that we've got to invest in those relationships. So, here's here's the point, Katelyn we're making. Cheap advisors are the most

1:26:19expensive line item on your balance sheet. I will hear that in our rooms. You've heard it. My CPA, oh, he charges $300 to file a tax return. Do you know why he charges $300? Cuz he or she sucks. That's the truth. Because if you were good, you wouldn't be doing it. Totally. You can make no money doing that. So, you're just literally doing nothing, popping the numbers in there, and file as many as you can. Yep. And I don't I mean, I've got to say it that way, Katelyn, cuz that's the truth. And so, you can pay the best one time, or you pay the worst and you pay forever. Mhm. And I just don't think people get it. All right. If you've been listening to our show for a bit, you've likely heard that I run a wealth-building mastermind largely around some of the same concepts and content that we talk about here on the podcast. We have an upcoming mastermind. We've got two seats left for it. If you want to come shadow our mastermind, take a look at what it's like, get an actual feel for what it feels like to be with a tribe of people that are on the same journey as you, we've got a completely risk-free way to do so. Just go to bewealthy.com, navigate over to our mastermind, and

1:27:22book a call with one of my team members to learn more about our mastermind, and you can how you can come completely risk-free and check it out. And so, Katelyn, this is going to be the setup. We've got through five of these. There's five more. There's going to be a part B of this episode that we will drop next week. I love it.
So, as we wrap up today, Katelyn, we covered today the five five of the 10. We covered what the wealthy overspend money on: time, Mhm. health and longevity, learning and skills, kids' education and exposure, and the trusted advisors. When you come back, we'll do the next five, and I'm going to tell you they're going to be shocking. Shocking. Uh way more shocking than these five. It'll be very shocking of what they actually overspend their money on. Katelyn, as we wrap up today, any parting thoughts before we wrap up here today? I'll give this one example. When you and I first started working together, this was a huge transition for me in the way that we think about

1:28:26businesses. The five things you just discussed, right? So, when I came into your world, I was used to the phrase I was used to what you have helped me understand is the phrase corporate bloat. I was used to working for large corporations in large environments where there was a lot of waste. And you helped me to see that if you eliminate the waste in businesses, like a big deal, but we'll call it softwares you don't use, subscriptions that you don't need, paper towels that are just being crumpled up and thrown in the trash. If you become a psycho around reducing those expenses and take that So, spend the time doing that, look at your P&L, reduce those and compress it as much as you can. If there's not an ROI for it and it's not utilized in the business, cut it as quickly as you can. Or And if you do need it, negotiate to drive that expense as low as possible. Not for the sake of the dollar you're saving or the

1:29:29dollar you're cutting, but because that dollar invested somewhere else, whether it be in time, health and longevity, learning our new skills in the organization, the right exposures, these things we just discussed, you save on that $1 and now you go invest it in this way, the way that wealthy spent money, has the exponential compounding returns that we started talking about today. And so, for me that was a total game changer because at first it was Brett's crazy about expenses, right? That's your reputation in our mastermind. Brett is crazy about saving dollars. But Brett's also really crazy about spending dollars and doing it in the right way to get that exponential compounding return. And so I think that's the big key. If you're listening to this and going, I don't have the money to go spend in these things, the place to start is look at cutting some of your expenses that may not be getting you what you actually need. It may be waste, it may be on putting yourself in rooms so that you're

1:30:30just around people that make you feel like you're getting something or you feel an obligation to be in because of your relationship with Johnny, but there's no return on that investment, or you're buying the handbag that doesn't matter, or the new phone or computer just because you want it, not because it's going to help you do better or do more. Or the car, right? Don't spend the money on those things. Compress those expenses so you can take them and invest them in one of the five things we discussed today and the five additional things we're going to discuss tomorrow to get that compound that you were talking about. That's my big. If you're listening to this and saying, I can't afford it, you absolutely aren't spending the money in the right places. It So, everything we talked about today, Katelyn, covers time, health, access, relationships. Nothing that we talked about today depreciates in value. Now, let's we look for a moment as we're wrapping up here, where do people that aren't wealthy spend their money? Stuff and things. Cars, gadgets, clothes, restaurants, status flexes. Yep.

1:31:33And all you got to do is open your Instagram right now and scroll through the people the five people that you follow and what are they what are they showing you? Cars, gadgets, clothes, flexes, status flexes. That's all they're showing you. They're not showing you how they're investing in their skills, reading a book. There There's not 75 Hard for Wealth, I created it as a joke. Um but what gets on there, dudes,
It starts by being powerful. You know,

1:32:40you cut what steals your freedom and you need to overspend on what compounds. And so that's our episode today. I'm Brett Tanner, that's Katelyn Mitchell. This is the Be Wealthy podcast. We'll see you back here next week.