Speaker A
I'm making this for people who want to get rich. And if that is not you, that is totally fine. There's no judgment.
Alex Hormozi shares why getting rich young maximizes compounding, skills, energy, and opportunities for long-term success.
Ask about this video. Answers come from its transcript only — with the timestamp, so you can check them.
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Key Takeaways
- Start building wealth as early as possible to maximize compounding benefits.
- Invest in skill development early to gain a lasting competitive advantage.
- Leverage youth as a multiplier for reputation, network, and capital access.
- Use early wins as stepping stones for larger future successes.
- Take advantage of your energy, flexibility, and adaptability while young.
What the video covers
- Starting to build wealth early leverages the power of compound interest, making initial investments grow disproportionately over time.
- Skills acquired at a younger age compound and create sustained advantages, as early repetitions lead to mastery.
- Youth amplifies reputational impact, allowing smaller wins to have greater influence and access to capital, mentors, and networks.
- Early success can be leveraged as stepping stones for bigger achievements later in life.
- Younger individuals have more energy and neuroplasticity, enabling faster learning and more repetitions.
- Fewer life constraints when young, such as family or geographic ties, allow greater flexibility to pursue opportunities.
- Geographical flexibility is a competitive advantage, enabling access to the best environments for skill and network growth.
- Adaptability is key to success, and youth provides the highest adaptability and ability to learn quickly.
- While success at any age is possible, starting young stacks the odds in your favor and makes the journey easier.
- Ignoring naysayers who lack the success you want is important; focus on your own path and timing.
Chapters
- 00:00Introduction and Purpose
- 00:29The Math Behind Getting Wealthy
- 02:01Compounding and Early Investments
- 02:04Youth and Skill Compounding
- 02:52Reputation and Capital Access in Youth
- 03:52Leveraging Early Success for Bigger Wins
- 04:24Advantages of Youth: Energy and Flexibility
- 05:14Geographical Flexibility and Network Building
- 06:32Adaptability and Game Theory in Success
- 07:15Exceptions and Final Motivational Advice
Full Transcript — Download SRT & Markdown
Speaker A
You can skip this. But this is for people who are trying to call it, uh, money max for the short period. So if you want to max, you have to min, and you have to be willing to do that
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for a period of time. Um, and so I'm going to give you an argument that I think is very compelling for why you should do it sooner. And so if you want to get rich, then you should try and get
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rich as young as possible. And I will break down very logical reasons for why.
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So number one, first and foremost, one of the most underrated reasons is the math behind getting wealthy. All right?
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So money compounds at three to four times the rate in the beginning as it does later. Meaning your increase in compounding on the excess cash you have in the earlier parts of your, um, uh, career will outpace the increase in
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earning power. And so, for example, if you have $1 extra when you're 25, it might be $90 by the time you're 70, right? Whereas, if that same dollar at 35, uh, would only be a third as much. And
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that same dollar at, uh, 45 would be a ninth as much, right? And so the idea is, uh, the dollars that you make even though they may be smaller by proportion when you get, when you allow compounding to
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compound, uh, actually results in more money later. Now my argument there is not that you must take 100% of your dollars and put it into the S&P 500.
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That's never been my argument. But that the dollars you do choose to put into investments of any kind at an earlier part in your, in your career do get disproportionate returns. So that's thing one. The second thing is that your
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skills will also compound disproportionately that you acquire at a younger age, right? Like there's a certain amount of repetitions that are required in order for you to become good. Bill Gates was able to get those repetitions early because he started
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coding early and then as a result he's able to build software first and then basically was able to keep this kind of sustained advantage. Like I talked to a guy yesterday, um, not yesterday, two days ago, Mhdi, who had $700,000 by the time
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he was 19, right? They had saved up. That was very interesting. Now imagine that that was a 65-year-old guy. We wouldn't be as impressed, right? And so time has very real impact on the scope or scale of your accomplishments as it
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relates to your reputation. Meaning when I was younger and a millionaire early, it meant a lot more. And so you actually get more reputational, um, uh, gravitas, right? And so, um, you can leverage a smaller win when you are younger for
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your reputation because you are younger, right? And I'll give you a secret that I, you know, only found out later is that you basically have until you're 30 to be considered young. The moment I turned 30, I was just a white dude.
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Before that, I was a young white dude. Uh, then I was just white dude and then no one cared after that. Right? So, in other words, youth is a multiplier on every win that you have, whether that be
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press, network, mentors, capital access. Um, I just made an investment, uh, this last week. Uh, I wrote a $500,000 check to a kid who was 18 years old. Uh, and he was doing, he had just done $30 million a year in e-commerce business
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and wanted to develop a tool, um, to, uh, to help e-commerce stores. So I was like, I knew he had the avatar. I knew he'd be able to do it. But the fact that he was 18 and had accomplished that made me think,
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okay, this guy is really sharp now. He got into my stuff at age 15. So it took him 3 years to get there, right? But in other words, um, that multiplier decays around 30, right? But so you have this
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period of time where going all in yields higher returns even for the same outcome. Now number three, you leverage early success into bigger later success. So his $30 million business, obviously everything's different in terms of what your scale of
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success is, right? But you can, you can, you can ladder on top of it. They're stepping stones. So for example, me when I went through the beginning, it was like I was able to get in shape really early and I was able to leverage that
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into personal training and online training clients, which I was able to leverage into a gym. And then from gym I got into multiple gyms. And then from multiple gyms I was able to start Gym Launch. And so the thing is is that
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every part of my career has been going back and basically taking a stepping stone on what I learned from the enterprise I did before. And then obviously the sale of Gym Launch got basically gave us our cash for
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acquisition.com to start the family office. And so everything builds on itself. And so if you, if you're going to have these steps, it's like the steps are, are, are set. It's just how soon do you want to get to this step? It's just
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how late you want to start. Right? So, next one is that I'll just rapid fire some reasons why I think it's better to get rich while you're, uh, young, which is that like you also have more energy, right? So, think about it like this.
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Like you, you, like you have to play the cards you're dealt. Getting those repetitions in takes energy. And I only know this now that I'm almost, you know, 40, which is wild to say, um, that I have less energy than I see some
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18-year-olds, right? And so, like that is a clear advantage that they have. And so if you have that then, like, you want to use it, right? In addition to that, you have fewer requirements. Meaning there are, are fewer things that you must
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do. You probably don't have kids yet. You probably aren't, you know, wedded up yet or, or husbanded up yet. Um, you probably don't have the same level of geographic dependence. And so you are more flexible. You can go to places
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where learning can occur faster. You can have fewer strings attached. You can live for less, which means you can be more aggressive with the excess cash that you make to reinvest in skills or in formal investments because you
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understand the value of multiplying and compounding, right? And again, this geographical flexibility I think is wildly underrated. One of the things that you get the advantage of when you're younger is that, like, if you want to be in, you know, politics, go to DC. If you
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want to be in finance, go to New York. If you want to be in, uh, if you want to be in influencer in media, go to, you know, go to LA, right? Those are great places to learn. Now once you become Joe Rogan, you
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can move to Austin and do whatever, whatever the hell you want, right? But the thing is is that when you want to get those reps, you want to go where the reps are, right? You want to go the
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where the fish are if you're trying to fish. And what you're fishing for right now is skills and network, right? You're trying to get places and you want to do it before you have strings tying you down and roots that you have set. And
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that is, again, it's a competitive advantage. It's not to say that when you're older you can't do it. It's just harder, right? And so if you believe that, uh, it's hard for you now to, uh, forego your existing path which may have
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been given to you by your siblings or society or whatever, I promise you it will only get harder. And if you can't do it now, the likelihood that you're able to do it later goes down, right?
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And for me, I want to stack bets where the probabilities are highest for my success. And whenever you enter a new system, by the way, this is game theory.
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The most adaptable player wins. So it's not, it's like survival of the fittest, right? And fittest is most adaptable.
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And when you are younger, you have the most adaptability. You have the most neuroplasticity as in you can learn faster. You have the most energy so you can do repetitions. You have the least geographical, uh, constraint so you can
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move to where the, where the action is. When you do earn, you make more dollars on each dollar you make. All the skills you acquire compound with time because you only get better at it. The accomplishments that you get from be
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young mean more because you're young than they do when they're old. And so the final point that I'll say is this is that you want to model success not the exceptions. Of course we want to tell the story of of uh of of Colonel Sanders
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who started you know Colonel Sanders when he was 63 and there's a bunch of you know other uh kind of call it exception stories of people who were older and then started companies uh and then obviously were really successful
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but like wouldn't it be better to be the rule than the exception? Like the richest people often got rich when they were young because they decided to, right? And I will say this because I love this quote from James Clear, but
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the thing that separates winners and losers is not their goals. People's goals are the same. The difference between the people who win and lose is the action they take as a result and the risk that they're willing to tolerate
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and the pain that they're willing to endure for extended periods of time with an uncertain payoff. And so if you think that you need certainty in order to move forward, I promise you that this world will never give it to you. And so it's
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really that there will always be uncertain and at some point you grow the the gonads, by the way, that's bisexual or unisex. Um, everybody's got gonads. Uh, you will grow the gonads or they will drop or whatever it is. Um, I
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told you I was going to do some HR stuff. Um, you will grow the grow the nads you need uh to take the bets. And so I think what really happens is that at some point you realize that you're
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not going to die if you fail. You will just learn and you will get better, which is the point of the process. and you will never finish and you will never actually win because by the time you win
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you will have already planted a much bigger goal that you want because the the goal that you had came in shooting distance and the easiest analogy I can say for this is this when I wanted to you know uh you know bench 315 for
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example uh I was a dream of mine when I was in high school right because I remember that just one big plate was a was wow the the strong kids could do a full plate right and then two plates was
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like super strong three plates was crazy by the time I benched 315 I knew knew I was going to hit 315 because I had done 275 for five and I did did 295 for, you know, a tripler instead of five. And so
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315 seemed obvious, right? And so the thing is is that by the time you accomplish goals, the goals themselves seem less meaningful because you already did the work to make that goal reasonable, which is why you achieved it, which is why you have to do so much
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work that is unreasonable that you do not become successful. And the best way to do that is to start when you're younger for all the reasons I just gave.
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All right? That's why you should succeed while you're young. That's why you should ignore the people who are telling you uh who don't have what you want uh telling you how to get something that they've never gotten. If you like this
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video and you're a business owner who wants to break through your current revenue ceiling, I distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling road map that I've used to go from 0 to
Speaker A
1, 0 to 10, and 0 to 100 plus. And so you can click here and you can check it out. Again, absolutely free. And since you're a business owner, appreciate you and uh enjoy.
Topics:getting richwealth buildingcompound interestearly successyouth advantageskill developmentfinancial adviceAlex Hormoziinvestment strategycareer growth
