– Hey, everyone, so recently
some people have said that they miss my
animated story time videos so, I thought I'd do something
a little bit different today. I thought I would tell you the real reason about how I was able to become
a millionaire in my 20s. You see, I was thinking back the other day to a plane trip I took from
Los Angeles to New Zealand in business class.
As you can see, I was flying
with a sore throat that day because this was back
before COVID was a thing. I was 28 at the time of the flight. My flight manager, Mike, was
walking through the aisle taking off everybody's
name from his clipboard as he was welcoming
everybody onto the flight. And as he came up to me, his eyes darted out from his
clipboard and he was like. And by now, after taking a lot of flights I was super used to this sort of thing. So I was just like, "Hello,
it is lovely to meet you." And he was just like,
"Yeah, yeah, kia ora, welcome on board, it's great to have you." And in that moment I knew
exactly what was going on. He was standing there going, "Okay, here's this young
girl, I'm confused. I don't understand, what is
she doing in business class?" I was clearly not flying for work given I was dressed so casually and I was flying by myself so no parents in sight
to be mooching off of.
And he could see that I had a
late status on the clipboard and that I flew a lot. Well, over that flight, we
chatted and built up a rapport until finally, just after breakfast, as we were about to land, we
were all saying, how fun it was and Mike finally built up enough courage to just come out and be like, "Okay, Sarah, I have to
ask, how are you here?" And as we talked, it became apparent that Mike had just assumed that there had to be
someone else out there paying for my seat, that
perhaps it was my employer or more likely my parents.
But as I said to him, "Nope, I was 100% paying for it myself." And Michael was quite stunned because the flights were
definitely not cheap. And for this flight I'd
actually paid with cash. And so he said to me,
"Okay, you have to tell me, how does a 28 year old like you have the ability to be able
to buy a business class seat?" And I said to him, "Look, Mike, my parents may have not given
me my millions of dollars but my parents are the reason why have millions of dollars today." And so while they may have not bought me my business class seat they are pretty much the
reason why I'm sitting here especially my father, because
you see over the years, while my parents were not
millionaires themselves, my father became very
interested in millionaires and billionaires and read a lot of books that they had written about what they did
differently compared to others.
And so one day on a walk,
when I was seven years old my father decided to share with me the secret that I needed to know if I wanted to become a
millionaire in my 20s. Growing up, my dad worked hard. He had a small business manufacturing and selling
commercial lights. There were many days that
I didn't even see him because he would wake
up at the crack of dawn and then come home late in the evening after I'd gone to bed. But even though my dad worked hard he still tried to spend time with me. And one of those was going on long walks where we would chat. And one of my dad's
favorite questions was this, "Sarah, what do you want
to be when you grow up?" Like cool kids my answer
changed every time he asked me.
Sometimes I wanted to work for Nintendo and make video games. Some days I wanted to be a doctor and some days I wanted to be a pilot. But this day I said to my dad, "When I grow up, I want
to be a millionaire." And do you know at this point I'd bet most people's parents would scoff and they'd be like, "Look, Sarah, I don't think you understand, being a millionaire it's not a profession. You don't just get to choose
to become a millionaire, pick an actual job that
you can train for, please." But luckily for me, my dad
ain't like most other dads and instead he laughed and said to me, "All right, Sarah, you
want to be a millionaire? Well, let me ask you a question.
How do you become a millionaire?" "Well, I guess I need to
make a million dollars." "Well, yes, yes you do, Sarah. So how do you make a lot of money? How do you make a million dollars?" "Oh, come on dad, I'm seven
years old, I'm just a kid. I don't know how to do that." "Well, that's true," my dad laughed, "But you know, Sarah,
most adults don't know how to do it either. Nobody taught me how to do it. And so I had to learn this
lesson much later in life, the sooner you know it
the easier it will be for you to become rich." So my dad took a detour
to a gardening store and he pointed at the wind chimes hanging. And he said to me, "You see
those wind chimes, Sarah, what do they remind you of?" I instantly recognized those wind chimes.
A few weeks prior, I've
been given a craft book. And one of the crafts was
how to make wind chimes out of Popsicle sticks. And it looked very similar to
the wind chime in the window. And dad said, "Wow, those wind chimes, that's selling for $40. How do you think they got
those wind chimes for sale?" And I paused, and I was like, "I don't know, did they make them?" "No, they didn't make them, Sarah. They bought them from someone else. They might've bought those wind chimes for $20 from someone else who made them and now they're selling them
for a higher price of $40. Now, Sarah, I have
another question for you. Each week you help your
mother with the dishes and you clean your room
and you take out the trash and how much money do you make for doing all of that chores?" "I get $2 pocket money." "Right, and it probably takes
you about 20 minutes each day to do all of your chores.
So that is about two hours a week. What is two divided by two?" "It's one." "That's right, so that means right now you're earning $1 an hour doing chores. Now, Sarah, I have
another question for you. I know you made a wind chime like that. How long did it take you to make it?" "Well, I spent last week doing it." "Yes you did, you worked
on it each day after school and you spent two hours on it. Well, what's five times two?" I had to think a little bit for that one. "I think it's 10." "That's right, it is. That means you spent 10
hours making that wind chime. Well, Sarah, now I have
another question for you. This garden store, they
bought this wind chime for $20 from someone. Well, imagine if you had
sold them your wind chime you would've made $20 for 10 hours work. And what is 20 divided by 10?" I stared at my dead blankly. Nobody had taught me how to
go beyond multiples of 12. My dad laughed and he said,
"20 divided by 10 is two.
That means Sarah, that
instead of doing chores for $1 an hour, you could
have been making wind chimes and making $2 an hour. That is double what you're
making doing chores. If you would made wind chimes you wouldn't have had to do chores anymore and you would make more money." And now, obviously, this
was a simplification but hopefully you get his point.
He was teaching me the first lesson that I needed to know about money. And that is this. Most people earn money by
completing tasks for others. Maybe they go into an office
and fill out spreadsheets or perhaps they work in a retail store and spend the time taking
payment from customers, or maybe they're an engineer and they go to work each
day and build planes. Either way it's all the same. But as my dad pointed out, while this might make
a decent safe living, it does not make you a millionaire. To become a millionaire
rather than going to work and building things for someone else so that they can sell them for a profit you need to make the things yourself so that you can sell them for a profit. And so a little seven
year old Sarah was like, "Aha, I have figured it out." So the way that I become a millionaire is I should make wind chimes and sell them to the garden store.
And my dad burst out laughing
because I was so, so close but I had one more money
lesson that I had to understand if I wanted to become a
millionaire while I was young. And so my dad was like, "Okay, I have one final
question for you, Sarah. Your sister, Melissa, what
do you think she'd rather do? Do you think she'd
rather be paid $1 an hour to do chores around the house? Or do you think she'd
rather be paid $1 an hour to do crafts?" And I was like, "Well,
she'd rather do crafts.
I'd rather do crafts." "Exactly, so Sarah, if
Melissa is willing to do $1 an hour for chores, imagine if you offered her $1 an hour to make wind chime even quick. If it took her 10 hours
to make a wind chime. You could pay her $10 and then you could go to the garden store and sell the wind chime for $20. What is 20 minus $10?" Again, I had to think
that one through a bit.
"I think it's $10." "You're right, if you sold
it to the garden store you'd be making $10 for each wind chime." But I was so confused because I was like, "Dad, I don't understand, how
on earth is this a good idea? Previously, when I was
making the wind chimes myself I was making $20. But now that Melissa's making
them, I'm making just $10. How does making less
money make me more rich?" And my dad just grinned and he was like, "So Sarah, your best
friend at school, Jean. How do you think that she would prefer to earn her pocket money? Do you think she'd rather do chores or do you think she'd rather do crafts?" And I was like, "Well, she
likes making can crafts too." "Exactly Sarah, so now you have two people making you wind chimes, Melissa, who makes you
one wind chime for $10 and Jean, who makes you
another wind chime $10 and then you go to the garden store and sell both for $20 each, you'll make a $10 profit on each one, which when added together means each week you'd be making $20.
That's double what you'd
be making doing chores at home for mum. And I, and do you know what
is the best part, Sarah?" "No, what?" "Because Melissa and Jean, are making these wind chimes for you you don't have to do anything. You can play video games and each week you'll still make $20." And so it was in that moment that everything truly clicked. The way to get rich isn't
just to go buy the materials so that I can make a
wind chime and sell it.
It is to also use my pocket money to buy other people's time and get them to make
the wind chimes for me. "Yes, Sarah, that's the secret. Hire other people or use tools to make the products or
services to sell for you so that you don't have to
spend your time doing it. This has a name it's
called passive income. Most people work to get their money but the wealthy have figured
out ways to make money make itself, and that, Sarah, that's how you become a millionaire." And as he walked home that day, I finally understood the true pathway to becoming a millionaire but I also understood something else.
I understood why my dad had told me that nobody had taught it to him and he had to figure it out himself. Because you think about it. School teaches us to do the opposite of what my dad taught me. At school, what do you do? You go into class each day and spend time completing
tasks assigned to you and in exchange you get
rewarded with good grades. Wow, this sounds an awful
lot like a job, doesn't it? You go to work and spend
time completing tasks assigned to you and in exchange you get rewarded with a salary. There are just two problems though with that strategy, isn't there? The first problem, you only
have 24 hours in a day. And for some of that you need to sleep. Exchanging your time to earn money will mean most people will
never become a millionaire fast because your income is not
scalable, it has a ceiling.
The second problem is that since
it is you selling your time it is you that has to
come in and do the job. You can't outsource it to
either technology or a person. And if you think about it that's exactly what school
makes us do as well. If you were to hire a friend
who is better at math than you to complete your math homework instead of being applauded
for being efficient with time you be punished for cheating. But luckily for me, unlike most people who only have school to
teach them how to earn money I had my father who
taught me a different way. And so when I turned 16 and all my friends went
off to get a part-time job I instead did something different.
I started an e-commerce business which is I shared on this channel I've been scaling ever since. Like most people I could have
used my energy to find a job to exchange my time for dollars but instead I used my
energy to find products that I could make and sell. And so, because of that over time, I've been able to outsource
all aspects of this business to either humans or apps. And so now, unlike a job, this business is running
by itself 24 hours a day making me money while I sleep. And so I said to Mike, "Well, my father may have not
bought me this plane ticket. He is indeed the reason why I am sitting at the front of the plane
instead of in the back." I'll admit it, I find it so baffling. There are so many people out there they're afraid of investing their money into building a business because they're afraid of losing it.
And yet they are more than happy to exclusively earn their money by exchanging the most valuable resource that we all have, which is our time. There is a reason that people like me want to buy it from you by hiring you. And that's because millionaires understand that there are always ways
to scale and earn more money but the one resource that
you can never earn back once you spend it is your time. And each day that you
spend doing something that you don't want to do is a day that you can never get back.
So, did this video inspire you? If it did, please hit subscribe and click that little notification bell so that you don't miss
out in any of my videos. And if you'd like to learn more about my scalable sources of income then you should be sure to watch my video, five income streams that I built in my 20s that makes me over $1,000 a day.
So go ahead, watch my next video and I'll see you over there..