Alex Hormozi: "I'm Broke... What Should I Do?"

Last updated: Jun 14, 2023

The video is about what to do if you are broke, and the speaker suggests investing in skills or buying a business instead of a house.

This video by Alex Hormozi was published on Apr 6, 2021.
Video length: 13:08.

In this video, Alex Hormozi talks about what to do when you are broke.

He shares his personal experience of losing everything and then making $110,000 in sales in the next month. He emphasizes the importance of having skills that no one can take away from you and talks about how the people he surrounds himself with now have more money but spend less. He then discusses two scenarios where someone has $50,000 and is considering buying a house or investing in a business. He suggests reaching out to brokers to find businesses that you have specialized knowledge in and negotiating the price and terms of the deal.

He shares a negotiation tactic of agreeing on price and then negotiating the terms.

  • The video provides advice on what to do if you are broke.
  • Investing in skills or buying a business is suggested instead of a house.
  • Skills are valuable and can help you make money.
  • Investing in a business can be a good investment opportunity.
  • Buying a house can also be a good investment opportunity.
  • Personal experience shows that investing in skills and buying a business can lead to financial success.
  • Investing in skills and buying a business can be less risky than other types of investments.

"I'm Broke... What Should I Do?" - YouTube

Alex Hormozi: "I

Introduction

  • The video is about what to do if you are broke.
  • Investing in skills or buying a business is suggested instead of a house.
Alex Hormozi: "I

Skills are valuable

  • Skills are important and can help you make money.
  • Skills are yours and cannot be taken away by anyone.
  • Surrounding yourself with people who have more money can help you learn how to spend less.
  • Investing in skills can help you make money even if you have nothing else in your life.
  • Skills are magical because they are always yours.
Alex Hormozi: "I

Investing in a business

  • Buying a business can be a good investment opportunity.
  • Instead of buying a house, you can use your money to buy a business.
  • You can contact brokers to get an idea of businesses in your area.
  • You can negotiate a deal to get a business for less than retail price.
  • You can agree on price and then negotiate terms, such as seller financing.
Alex Hormozi: "I

"I'm Broke... What Should I Do?" - YouTube

Investing in a house

  • Buying a house can be a good investment opportunity.
  • You may need to put 10% down for your first house.
  • You will have a mortgage payment every month.
  • You may need to save up for several years to afford a down payment.
  • Investing in a house can be a good long-term investment.
Alex Hormozi: "I

Investing in Skills

  • Investing in skills is a good way to improve your financial situation.
  • Skills are something that can never be taken away from you.
  • Investing in skills can lead to better job opportunities and higher income.
  • Skills can be learned through online courses, books, or mentorship.
  • Investing in skills can also lead to starting your own business.
Alex Hormozi: "I

Buying a Business

  • Buying a business can be a good investment.
  • Buying an existing business with a proven track record can be less risky than starting a new business.
  • Buying a business can lead to an immediate increase in income.
  • Buying a business can be financed through a combination of seller financing and bank loans.
  • Buying a business can lead to opportunities for growth and increased profits.
Alex Hormozi: "I

Lessons from Personal Experience

  • Personal experience shows that investing in skills and buying a business can lead to financial success.
  • Personal experience also shows that putting too much money into a business can be risky and not necessarily lead to higher profits.
  • Personal experience shows that negotiating seller financing can be a good way to acquire a business without putting too much money upfront.
  • Personal experience shows that acquiring a cash-flowing asset for nothing is possible through smart negotiation and financing.
  • Personal experience shows that skills are something that can never be taken away and can lead to financial success even after hitting rock bottom.
Alex Hormozi: "I

The Importance of Risk Aversion

  • Wealthy people are often more risk averse because the downside risk of losing everything is always bigger.
  • Bad investments can lead to the reversal of years of good decisions.
  • Investing in skills and buying a business can be less risky than other types of investments.
  • Investing in skills and buying a business can lead to long-term financial success.
  • Investing in skills and buying a business can provide a sense of security and control over one's financial future.
Alex Hormozi: "I

Invest in Skills or Buy a Business Instead of a House

  • People who have the most money have lower risk tolerances than those who have no money.
  • Poor people buy things that have virtually guaranteed risk of going to zero with tiny risk of upside, while rich people buy stuff for zero dollars that have upside potential.
  • Rich people prefer a guaranteed small return with no risk than a potential for huge return with guaranteed risk.
  • Shifting perspective takes time, but it's important to avoid investments with high downside risk.
  • Agree on price and terms, and try to get something for nothing.
  • Look for businesses that are already for sale or have a motivated seller who may give it to you for free.
Alex Hormozi: "I

Have Patience and Look for Opportunities

  • Character traits of being successful are important before seeing success.
  • Take time to make a good deal or find something that makes four times more money for free.
  • There are opportunities that are not listed anywhere, and you have to look for them.
  • Business owners making millions of dollars a year may be willing to sell for much less than expected.
  • Opportunities require work, but with a little bit of work ethic, you can make a tremendous amount of money with very little risk.
  • Follow the way rich people invest to achieve success.

Watch the video on YouTube:
"I'm Broke... What Should I Do?" - YouTube

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