Alex Hormozi: I sold everything

The video is about why Alex Hormozi sold everything he owned, what life was like after he made the decision, what he learned, and what he is doing now.

This video by Alex Hormozi was published on Mar 21, 2022.
Video length: 22:28.

In this video, Alex Hormozi talks about why he sold everything he owned, including a $4 million house and two businesses worth almost $50 million.

He explains that he wanted a reset and to live a more minimalist lifestyle. He discusses his requirements for a new home, including being within walking distance of nature, restaurants, a gym, and a grocery store, as well as having a view of the ocean, lake, or mountain.

He also talks about the importance of considering submarkets when choosing a location to live.

• Alex sold everything to live a minimalist lifestyle and figure out where he wanted to live.
• He got rid of most of his clothing and spent time in different areas to find his ideal home.
• He learned that submarkets are more important than cities and that having a sick gym and grocery store nearby is convenient.
• He now invests in service-based or e-learning businesses and lives a minimalist lifestyle while still figuring out where to settle down.
• His ideal home requirements include zero percent tax, a wealthy area, a central airport, lock and leave flexibility, and an office within 15 minutes.
• He traveled and leased high-end places but missed the social aspect and importance of personal belongings.
• He currently lives in a tiny condo and plans to eventually settle down in a permanent home.
• Materialism and hedonic adaptation mean that having too much stuff can be overwhelming and that exotic cars may not bring joy.
• Private jets are worth the money for travel, and the cost becomes relatively low when you make a lot of money.

I sold everything - YouTube

Why did Alex sell everything?

• He felt weighed down by material possessions.
• He wanted a reset.
• He has lived his life in seasons.
• He wanted to live a minimalist lifestyle.
• He wanted to figure out where he wanted to live.

What was life like after the decision?

• He got rid of most of his clothing.
• He and his wife spent time in different areas to figure out where they wanted to live.
• He had a list of requirements for his ideal home.
• He wanted things to be walking distance from him.
• He wanted a view of either the ocean, lake, or mountain.

What did Alex learn?

• 90% of his life is predicated on the things that are in his immediate walkable distance.
• A sick gym is an important part of his life.
• Having a grocery store nearby is convenient.
• People make snap judgments on areas based on limited data.
• Submarkets are more important than cities.

I sold everything - YouTube

What is Alex doing now?

• He invests in service-based businesses or e-learning businesses that are doing one to ten million a year in profit.
• He wants to transfer the lessons he has learned to help other people.
• He is looking for businesses that meet his investment criteria.
• He is living a minimalist lifestyle.
• He is still figuring out where he wants to live.

Requirements for a Home

• A preference for zero percent tax
• Living in a wealthy area to meet interesting neighbors
• A central airport close by for easy travel
• Lock and leave flexibility for traveling
• In a market that can attract talent for potential hiring
• An office within 15 minutes of the house for in-person employees

Traveling and Leasing High-End Places

• Traveled to various places for nine months with only bags
• Rented high-end places costing around 50 to 100 thousand a month
• Missed the familiarity and social circles of having a permanent home
• Realized the importance of having personal belongings around
• Particular about having certain amenities in a home

Lessons Learned

• Missed the social aspect of having a permanent home
• Importance of having personal belongings around
• Particular about having certain amenities in a home
• Realized the importance of having a permanent home
• Leasing high-end places can be expensive

Current Situation

• Decided to go remote for work
• Currently living in a tiny condo
• Has a lot of particularities about how he likes things
• Still travels frequently
• Plans to eventually settle down in a permanent home

Materialism and Hedonic Adaptation

• Having a lot of money doesn't necessarily mean buying everything you want.
• Having too much stuff can be overwhelming and lead to overcorrection.
• The ideal setup is having two to three primary homes with all your stuff.
• Not having a home base can make you feel like a nomad.
• Hedonic adaptation means that as you get used to new things, they no longer bring you joy.

Exotic Cars and Private Jets

• Exotic cars don't necessarily bring joy and can be a waste of money.
• People treat you better when you have an exotic car, but it can also make you see people in a worse way.
• Private jets are worth the money because they have a lot of function for travel.
• The cost of things becomes very low relative to your income when you make a lot of money.
• Private flights can cost relatively little when you make a lot of money.

Benefits of Flying Private

• Flying private saves time and energy.
• It transforms transport from a negative experience to a positive one.
• It is a more accessible option for people who don't want to waste days or have a recovery period.
• It is a positive experience rather than a negative one.
• People who have more income make the trade because it makes more sense relative to their income.

Reasons for Buying a Home

• A home base is necessary for having a headquarters where all of one's stuff is.
• It is helpful for work productivity and efficiency.
• Form over function is the unifying theory for making decisions around material goods.
• Money is spent on things that have improved function.
• Decisions are made based on function rather than form.

Unifying Theory for Buying Things

• Form over function is the unifying theory for making decisions around material goods.
• Decisions are made based on function rather than form.
• Clothing that decreases quality of life is given away.
• Clothing that is meaningful is kept.
• Buying something means throwing something else out.

Buying Clothing

• Clothing that has higher utility is bought.
• If a shirt is liked, six colors of that shirt are bought.
• Other t-shirts are replaced in bulk.
• Cheap cotton t-shirts are preferred over expensive ones because they breathe better and are interchangeable.
• Expensive flannels are bought because they fit well.

Alex Hormozi's Unifying Theory on Form over Function

• Alex Hormozi sold everything he owned and leased his lifestyle to optimize different aspects of his life.
• He realized that having too much stuff weighed him down, but he also liked having some stuff.
• His unifying theory is function over form, where the net utility it provides him in his life is the primary driving factor.
• He uses decision algorithms to make his life easier and allocate all of his time to making new decisions rather than remaking old ones.
• He plans to have two to three homes in different areas with different vibes, such as beach, mountain, lake, and desert, to get the best of everything without having to be on the road all the time.
• He believes that everyone has to figure out what the just right is for them, but the middle path is the way.

Watch the video on YouTube:
I sold everything - YouTube