Alex Hormozi: I lived on $0 income for 3 years growing my business...

The video is about Alex Hormozi's personal experience of living on $0 income for 3 years while growing his business and how his living expenses changed over time.

This video by Alex Hormozi was published on Jun 14, 2022.
Video length: 16:41.

In this video, Alex Hormozi talks about his personal experience of living on zero income for three years while growing his business.

He discusses the importance of balancing spending and saving, and how his living expenses changed over the years as his business grew. He also emphasizes the importance of taking distributions as a business grows to mitigate risk.

Hormozi hopes that his story can provide clarity and guidance for those who are trying to emulate his path to success.

• Alex Hormozi lived on $0 income for 3 years while growing his business.
• His living expenses changed over time as his business grew.
• He emphasizes the importance of taking distributions as you grow to mitigate risk.
• He hopes his story can provide clarity for those trying to emulate his path.
• Moved to Albuquerque where rent was $200 a month.
• Business went from $300,000 to $1.5 million a month.
• Accumulated around $30 million in cash and assets.
• Alex and his wife spent around $15,000 a month on travel.
• The lower your personal expenses, the more material wealth you can accumulate.

I lived on $0 income for 3 years growing my business... - YouTube

Introduction

• Alex Hormozi is an entrepreneur, investor, and CEO of Acquisition.com.
• He lived on $0 income for 3 years while growing his business.
• He talks about how his living expenses changed over time.

Season One: Quitting Job and Sleeping on the Floor

• Alex slept on the gym floor and had no personal rent or car payment.
• He lived exclusively on the cash sales from the business.
• He ate out at In-N-Out and Chipotle.
• He increased his income to about $15,000 a month.
• He saved up about $70,000 after taxes and lived on that for three years.

Season Two: Reinvesting in the Growth of the Business

• Alex had two partners and they stopped taking dividends to invest in the growth of the business.
• He had saved up about $70,000 after taxes from the first six to nine months of doing business.
• He lived in a shared room in a house with another guy and split the rent.
• He spent money only on eating out at In-N-Out and Chipotle.
• He did this for three years.

I lived on $0 income for 3 years growing my business... - YouTube

Season Three: Buying a Condo and Doing Gym Turnarounds

• Alex bought a condo and rented it for $3,500 a month.
• He and Layla started doing gym turnarounds and made about $200,000 to $300,000 a month in revenue.
• He didn't take distributions because he didn't learn that lesson yet.
• He lived at the extended stay for $1,800 a month.
• His only expenses were the extended stay and eating out.

Conclusion

• Alex's living expenses changed over time as his business grew.
• He emphasizes the importance of taking distributions as you grow to mitigate risk.
• He hopes his story can provide clarity for those trying to emulate his path.
• He makes these videos to help others and doesn't sell coaching or mentorships.

Living on $0 Income

• Moved to Albuquerque where rent was $200 a month
• Owned a Prius in cash
• Ate out once a week and switched to meal prepping
• Only big expense was date night
• Business went from $300,000 to $1.5 million a month
• Added a million dollars to personal bank account every month

Creating Wealth Quickly

• Bought a $1.8 million house in cash
• Owned a BMW i8 gifted by ClickFunnels
• Overindexed on building the business and didn't have much fun
• Bought a Bentley but sold it within six months
• Revenue increased from $1.5 million to over $4 million a month
• Accumulated around $30 million in cash and assets

De-Risking and Living Cheap

• Learned to take dividends to focus on profitability
• De-risking by taking cash off the table
• Living cheap is relative to income
• Accumulated about $30 million in cash and non-business equities
• Sold everything in 2021, including businesses and house
• Kept one car and planned to sell the other

Q&A

• Encourages viewers to drop questions in the comments

Living Expenses

• Alex and his wife sold all their personal assets and lived on business and investment assets.
• They rented a condo for $15,000 a month.
• They spent $15,000 a month on food and eating out.
• They don't cook much and prefer to eat out.
• They spend their evenings watching shows and going to bed early.

Travel Expenses

• Alex and his wife spent around $15,000 a month on travel.
• They used to fly private more often, but now they use JSX, which is a semi-private airline.
• JSX offers many of the same benefits as private travel, but it's public and marginally more expensive than a normal ticket.
• They opt to fly JSX instead of private because it saves time and money.
• They try to fly places where JSX goes.

Income and Expenses

• Acquisition.com is currently doing over $150 million a year.
• Alex and his wife's lifestyle hasn't increased at the same proportion as their income.
• They are both very security-driven individuals.
• The lower your personal expenses, the more material wealth you can accumulate.
• Peace of mind is predicated on the ratio between your income and expenses.

Playing the Game

• Alex's goal is to get to "enough" as fast as possible so that he can feel peace of mind.
• Everything they do now is for the love of the game.
• The goal for Mozzie Nation is for everyone to play the game for the love of the game, not for material possessions.
• Wealth occurs the moment you decide you are wealthy.
• Money can buy freedom, but it won't buy happiness.

Controlling Expenses and Increasing Income

• People should think about whether the things they buy add more value than the price they pay for them.
• Many people purchase things without thinking about their value.
• It is not unreasonable to live on a million dollars a year if you make 15 million a year.
• The ratio between income and expenses is what matters, not the actual amount of income or expenses.
• People can control their expenses and increase their income by acquiring more skills.
• Increasing skills can help people achieve the peace of mind they desire.

Watch the video on YouTube:
I lived on $0 income for 3 years growing my business... - YouTube