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 it’s it’s rooted in like trauma like just fear it bothers me so much like for example um cometier coffee um i they sent me some for free it’s so good but it’s a dollar fifty per cup and compare that to like you being coffee i’m like a dollar fifty sometimes i don’t even drink the whole thing and so like i’ve been really struggling with like is that worth it is this worth it [Music] can i tell you something uh interesting i saw so um the one the 0.01 rule so nathan barry came on the pod and he was cool so he’s the the founder of convertkit he came on he was telling us about some blog posts that either he’s written or the other different that he liked so i went back and i read one of them and i saw this thing called the 0.01 percent rule have you seen this no okay so he’s pretty amazing i’m gonna pull up this uh where’s the blog 0.1 rule wealth let me see if i can pull it up here okay i’m not gonna be able to find it real quick here but i’ll put the link in ben if you can find it or search nathan barry wealth ladder 0.01 so basically the way the guys think he’s like he’s like you know he’s like he talks about price sensitivity he’s sort of like you know as you get more rich you um you know the way you think about money should change right this is like when i came to your house and you had like cvs receipts in the glove compartment because you’re like saving them for like the three dollar thing you’re like hell yeah and i was like dude you just sold your company for like many many millions of dollars uh what are you doing with these cvs receipts you’re like i just like to do it it’s a habit and so this guy talks about like the richer you get um you should sort of he’s like he’s like this works for when you sell something to somebody or yourself as you get to that level basically below 0.01 percent of your net worth so that’s you take your net worth you multiply by 0.000 whatever you know one so it’s like uh 0.01 of your net worth so let’s say you’re worth um let’s do 100 million so 100 million what is it times what use five billion right they’ll use a little bit more of a approachable number here so that would be five hundred dollars for if you have five million dollars a net worth five hundred dollars at the threshold below which you don’t really feel it you don’t really care or feel it you can become a little bit price insensitive below that point so that might be like you know opting for the you know the nicer hotel or like you just really don’t give a [ ] you can just ball out at a restaurant you really don’t care uh and so he draws this little curve and he’s like at um at the first level of wealth it’s like he calls it like level zero level one of wealth where it’s like you know your 0.01 is like a hundred dollars or less than a hundred dollars at that point a million dollars yeah a million dollars would be a hundred bucks yeah so he’s like you know at that point like you know if you’re at the grocery store and something costs an extra dollar like you care you don’t want to buy the eggs that cost 1.99 more you care he’s like then the next level the next jump up is you’re like well i don’t care at like you know it’s the way he draws the chart it’s like what are restaurant prices then the next one’s like what are vacation prices like you don’t even really care about how much your vacations cost the next one is like you you know you could fly first class and then the final one is like you know or the next one’s like you can buy a crazy house you know you don’t really get you’re not really feeling uh house prices as much and then the final one is like you know what are prices anyways like you know this is when you’re worth over 100 million dollars like at that point most things don’t cost anything to you and um you’re pretty insensitive to the cost of it so i’m sort of summarizing the idea the exact you know you can quibble about what you should or shouldn’t care about but i thought it was kind of an interesting number and the reason i bring it up is very few people that i know are like properly price sensitive so there’s a lot of people i know like my dad who no matter how wealthy they’ve got like these sort of like the trauma of not having money is so deeply ingrained in his body that like starbucks he’s just like he’s like pissed off when they charge even if he buys the coffee it like he’s angry at the price he’s like oh my god 4.99 like i could make this for so much less and they’re like sir you’re welcome to do that and he’s like oh like what’s going on and you know he’s anchored to prices from like the 80s when like you know that’s where like he thought movie tickets should cost x and also you know it just like hurts him to spend more than some amount regardless of what’s in his bank account and so he’s kind of on one side of the spectrum too cheap and then there’s another side spectrum which we’re more where i am where it’s like dude you should really kind of pay attention to this you’re kind of spending like pretty crazy and uh you know completely price insensitive is on the other side and then there’s like whatever the sweet spot is and then school they don’t really teach you how to how to like gauge that or what what those kind of like what even should be a good number for this what should i spend on things so you you don’t get nervous like i i freak out a little because as an entrepreneur like some years i just like knock it out the park and make so much money other years i make nothing uh i mean hopefully i don’t think nothing will ever happen again but like there’s times you don’t get nervous about running out no actually like two months ago i was like oh my god i have like no cash left no cash on hand left i was i was investing in everything i saw i was putting money into startups and to crypto into stuff i was then i was spending a bunch like my payroll expanded and i was like oh my god i have like so little cash i thought that way too it was under i had 60 grand in cash and i was like i feel low yeah i think it was like 38 000 was in my like whatever wells fargo checking account i was like where’d all the money go this was like and i was like oh yeah i guess and i looked at the like out outgoing thing and it was like it’s not that my spending had gone up i was really just investing a lot of money but i was like wow i should uh i need to manage cash for most of the time for me it’s like i need to send my invoices for like things you know like i was like all right i’m gonna teach a course and i’m gonna invoice you know for the podcast and i’m gonna like do the things that bring in like cash today versus most of the things i invest my money into are like long-term illiquid things or my own businesses right like uh maybe i should take a withdrawal out of my business and like put money in my bank account and so so you know it was just like a reminder of that but no i don’t really get too worried about that um and maybe you know again i think i’m too far on the dial of like willing to spend on whatever ramit safety this is pretty much what his entire uh not course but his entire image and content is about which is like he’s got this podcast where two people couples argue like we have we’re worth three million dollars and he got into a fight with me because i spent eighty dollars on this silly thing ramit’s all about that it’s i have i’m more like your father than i am like you like and i think it’s just rooted it’s it’s rooted in like trauma like just fear uh i’ve got the same thing we’re just like it’s like it bothers me so much like for example um cometeer coffee um i they is that worth it is this worth it or the backsplash on my sink in my kitchen we need to replace it and it’s eight hundred dollars and i’ve been fretting over it for over a year now i’m like ugh eight hundred dollars to replace that i can’t so even though it will add value to the home and also make me happier i understand why your dad thinks that way it’s really it’s real i think it’s challenging when you’re it’s like you know it’s proper trauma i think of you felt one way for years and now you suddenly like things are different yeah maybe we actually need money therapy uh money therapy specifically i think that’s actually a good idea here so therapy is this broad thing that has like a bunch of associations with it and mostly it’s like stigmas and blah blah blah i think somebody needs to spin off and remember it sounds like he’s kind of doing this which is just a great idea financial therapy um and it’s like yeah have a money coach or you know you probably need to switching therapy to coach is the hack to like oh i’m focusing on performance and not like uh you know fixing a pr broken part of me uh but in reality it’s that i tried finding people like this and when i met them i was like look we’re just getting knowledgeable not a financial advisor different thing no i know when i go i would go to therapy for a lot and i would and i would go when i whenever i was trying out a new therapist i’d be like so i’m not going to like i’m not trying to sound like a douche or big-headed but like i’m a high achiever like i want to like conquer the world and like do cool [ ] and so i don’t want to talk like this is this is the the place that i’m coming from like i’m high octane baby can can we can we make this happen do you have the tools necessary or no or do you like specialized just in like you know like traditional way what were you really trying to tell her you were trying to tell her that my problems are not like i’m not broken i’m trying to like just achieve a higher level of success or were you trying to tell me what i’m going to have a player therapist is that what you were trying to ask her what were you trying to ask him no the blunt way to explain it is i’ve got rich i’m i’m complaining about some rich people problems okay and like i’m just like mostly just insecure about certain things and i want to like use that to like conquer the world i’m not very good on twitter yeah and like i’m gonna complain about stuff that sounds super weak because like on outside like everything’s going great but i need you to like empathize that like i’m trying to like go places and i don’t need you to tell me that like well you made a million dollars that last year isn’t that good enough like no dog that’s not like i need you to understand like what like what’s at stake here you know what i mean i said what is at stake here that’s like you’re better i’m gonna be i’m gonna be i’m gonna be your money therapist but you know what i mean like it’s so like i would be people and i’m like oh you’ve only worked with like a certain type of person you have like i don’t think you unders i don’t think you’ll be able to help me yeah yeah exactly i know what you mean it’s the reason tony robbins gets paid a million dollars plus per client because it’s like his clients are serena williams and ray dalio and you know or whoever he’s crazy yeah and he himself is successful and his other clients are objectively very successful but everybody um you know can improve the you know the little voice in their head you