Episode of My First Million with Sam Parr and Shaan Puri.
Transcript
Note: This transcript was auto-generated from YouTube captions. It may contain errors and lacks speaker identification. A full Gemini audio transcript will replace this.
Kind: captions Language: en so there’s this subreddit that i go to and i love it it’s called uh fat fire and the idea is people who want to retire relatively young with a lot of money so they can live a fat life without working and so basically if you post on there a lot the mods the community leaders of the subreddit will verify your net worth to make your sure you’re not full of [ ] by the way did you have a goal like this like i want to retire by x age or i want to be like yeah this wealthy by this age what was your like how did you phrase your goal uh i i wanted to have 20 million dollars by age 30. gotcha all right that’s what i wanted that was my goal i created that goal when i was in my uh when i was like 19 or 20 years old i mean i can’t confirm or deny but you know mission accomplished is what i would say i sold my company i achieved it at 31 i sold my company at 31. right um and so my that was my goal because i asked a rich person who i knew i asked him how much money do you spend a month and they told me 60 000 a month and at the time i was like i don’t know like i can’t imagine there’s a world where i would just weird yeah yeah i’m like that just sounds crazy but whatever like i asked like eight people and this person had the highest number and i was like okay i’ll just do that because i’ll be conservative and then uh a percentage of your portfo of your liquid portfolio and basically it continues to grow have enough money that the earnings the the the sort of compounding earnings on the money being invested in something safe like the stock market s p 500 type of thing can um can cover your burn rate so there’s two things that matter what is the what is the amount that i have invested and what is my life burn rate that’s why a lot of people who like fire they go move to like you know bum [ ] you know middle of nowhere and they they’re like oh yeah i got rid of my car and it’s great now i can you know i got rid of everything i own and me and my wife we only eat apple cores and now we were retired it’s like but fat fire is different fat fire is like now i kind of want to ball out i’m not trying to like skimp on my lifestyle so okay what do i need to achieve and what do i need to optimize while still not giving up like what i find to be enjoyable in terms of lifestyle yeah so that’s how i made up that number and i don’t even i spend 15 000 a month i mean when i sold i had saved a like seven figures of course that includes my wife and i and she also uh worked at airbnb and so airbnb went public and she had worked there for a long time airbnb went public in december i sold my company in february so it was like on december 1st and then like february 1st it was like that those two or three months was like massive right and so but prior to that or that it take her out because we don’t want to put her business out there so let’s just talk about you um in your early 20s what were you making so um from age 22 to probably 26 and 27 i paid myself something like two grand a month so in the brain so the first year of business i probably paid myself twenty thousand dollars for the first year and then i paid myself forty thousand dollars for the next two years and then um seventy thousand dollars and then the last year that was 24k a year and then 40k a year and then you said 70k roughly you know it was like 20 40 40 70. yeah so that’s four years in and then the year we sold i paid myself close to 300 thousand dollars right and i had a few other investments like some angel investments and um like some weird things that kind of paid off but basically like for the longest time i mean i was living i the way i rigged it was in san francisco my rent was only 400 because i rented out this big place and i only had 25 grand of my name and i spent all of it to rent out and furnish this place and then i rented it out to people who basically subsidized it for me so i was living like a poor person and um so i was able to save a little bit of money living like like a wealthy person really you were living in a place and it was only costing you 400 a month which is great example by the way because there’s a lot of people that will be like i want to move to san francisco but i can’t afford it all you’re saying to me is i lack creativity and resourcefulness because what you did is available to everybody go find a place that’s at market or slightly below market price and what you did i think is you cut a deal with the landlord you were like i’ll never call you for anything yeah i told it breaks i’ll fix it i think you live there for like a decade or some [ ] and you’d never like set like seven years never spoke to the person yeah i never saw him i had not one said have i ever seen him actually if he showed up at the house you wouldn’t know who that guy is i would not i don’t even remember what he looks like i couldn’t even tell you what he looks like i think his name was chris and so you cut this deal and you’re like look i’m you basically became the landlord well i showed i showed up and i was 22 and it was a four thousand dollar or five i forget how much was it forty five hundred dollars a month for a four bedroom house and he goes is it just you i go look it’s just me right now but i’m gonna get like some friends to move in um i’ll like sign a lease a sublease with them and i and i can have you approve it right but basically like i’m gonna pay you on time all the time and my the preferred relationship you and i have is i never see you again and are you okay with that and he goes yeah he goes don’t don’t be late and i go okay deal anyway it yeah and so at this point yeah so it was a slow build it took like five six seven years but then what’s crazy is i’m 32 now i started hustling at age 20 probably 20 like making like real money on my own like livable money and at this point at age 32 i’ll make more this year from a couple like side investments like a real estate deal that i did i’ll make more this year than collectively all of my salaries combined while working at the hustle exactly and that’s that’s the exact same same case for me and i think that’s actually really common and i think the reason i bring that up is because it’s interesting to me b i think that’s really comforting to people because when you’re in it and you’re not making any money and it looks like other people are all making hell of money it feels it could feel very bad and you can question if you’re on the right path or not and this doesn’t mean you’re definitely on the right path but it means when this path of entrepreneurship works that’s commonly what it looks like so don’t be surprised um all right so let’s get back to which by the way um when i was getting going i was always so envious of other people like my friends i’m like [ ] you got a job at google you make 150 grand a year and you have all these benefits i haven’t been to the doctor forever this is awesome i’m so jealous so you would come to you’d come to my office and you’d be like dude this is your office and yeah yeah and then we’d be eating something you’d be like this is this cheese just always available whose cheese is this they just bring you cheese i felt like i would be like you’d be like look this cheese is from whole foods this is expensive cheese i’m like bro stop talking about the cheese right now but it was like i remember you were noticing all those things in a funny way i was like you guys have an espresso machine he’s got a woman’s bathroom what the hell is this machine yeah i remember i was like freaking out that you had an expression like espresso machine i was like what the hell is this and i remember like i used to take food to go so anyway um yeah it accumulated quickly and i think it for most people it’s i mean it like i think that it’s basically it’s like you’re poor you’re poor you’re poor and then it’s like suddenly it’s like oh holy crap i’m not anymore and you know you have that moment and there’s a subreddit called fat fire and they talk a lot about that and there’s this guy who has a series of threads called confessions of a hecto millionaire and he’s doing like eight parts and i linked to it in there i see five here yeah and the mods have basically um approved it so basically the mods have like this guy dm’d him dm’d his accountants or account information or something so they like verified that he’s uh as wealthy as he is but basically in the beginning uh thread he says um you know i’m worth north of 100 million dollars i got wealthy originally because i was an employee at a tech company that made me 30 million dollars and that was like 15 years ago and then i invested in this and then i did this and then i did this and i’m gonna answer a lot of the questions that i think a lot of people ask here and the mods have approved that i am who i am and i’m gonna tell you all about work and purpose my time and routine why i keep a low profile how relationships are complicated what i spend on a monthly basis um what my investment in portfolio management is and it’s incredibly fascinating i love this stuff where you get behind the scenes of people you normally never have access to and so it’s a great series it’s a great thread it’s awesome