Alex Hormozi: First Lesson My $3.4B Mentor Taught Me...

Last updated: Jun 14, 2023

The video is about the "money ladder" and how understanding the order in which people get paid can help individuals gain wealth and control in their financial lives.

This video by Alex Hormozi was published on May 4, 2021.
Video length: 08:50.

In this video, Alex Hormozi discusses the concept of the "money ladder" and how understanding the order in which people get paid can help individuals gain more control and power in their financial lives.

He explains that employees typically work first and get paid later, while self-employed individuals may start to get paid upfront or in installments. Banks and insurance companies are at the top of the ladder, as they get paid first and have more control over the flow of money.

Hormozi emphasizes the importance of understanding this hierarchy in order to make better financial decisions.

  • Alex Hormozi is an entrepreneur, investor, and CEO of Acquisition.com.
  • He talks about the money ladder and how understanding the order in which people get paid can help individuals gain wealth and control in their financial lives.
  • An employee works first and gets paid two weeks later.
  • People who get paid first include doctors who get paid before they do the surgery.
  • Banks have a capital stack and are preferred creditors.

First Lesson My $3.4B Mentor Taught Me... - YouTube

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Introduction

  • Alex Hormozi is an entrepreneur, investor, and CEO of Acquisition.com.
  • He built three companies that did $110 million in sales and now invests in other companies.
  • He talks about the money ladder and how understanding the order in which people get paid can help individuals gain wealth and control in their financial lives.
  • The money ladder is the order in which people get paid.
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Employee and Self-Employed

  • An employee works first and gets paid two weeks later.
  • Self-employed people typically model the same thing as an employee.
  • Some self-employed people get paid half upfront and half upon delivery.
  • Some self-employed people get paid upfront or as they work.
  • Self-employed people move up the money ladder as they get paid more upfront.
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Paid First

  • People who get paid first include doctors who get paid before they do the surgery.
  • Getting paid first is another level of wealth and control.
  • Payment plans and paying upfront are variables that affect getting paid first.
  • Getting paid first is a level of control and power.
  • Getting paid first is not the highest level of wealth and control.
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First Lesson My $3.4B Mentor Taught Me... - YouTube

Banks and Insurance

  • Banks have a capital stack and are preferred creditors.
  • Banks get paid first, and whatever is left over goes to the borrower.
  • Insurance gets paid far before they ever have to do anything.
  • Insurance is paid for years before they have to fulfill their obligation.
  • Insurance is fascinating and gets paid far before they ever have to do anything.
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The Money Ladder

  • People at the bottom of the money ladder front their time, effort, and labor and get paid later.
  • Self-employed people front their time or split payments and get paid more up front.
  • Banks get paid first and leave people with scraps afterwards.
  • Insurance companies get paid the whole time and may or may not have to fulfill on their work.
  • God gets 10% off the top line of what you make.
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Insurance Companies

  • Insurance is the reverse of a depreciating asset.
  • Insurance companies get all the money up front and appreciate it over time.
  • Insurance companies pay out based on the appreciated money.
  • Insurance companies are some of the oldest companies in the world.
  • Insurance companies predate the tax code and don't have to pay taxes.

Watch the video on YouTube:
First Lesson My $3.4B Mentor Taught Me... - YouTube

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