## The Blueprint to Becoming a Millionaire - Part 4

Welcome back to our journey towards financial success! In the previous newsletters, we discussed the fundamentals of wealth creation, the different paths to becoming a millionaire, the importance of focus in building your wealth, and the key strategies and concepts for success.

Today, we will continue our exploration of the principles that will help you achieve your financial goals.

### The Power of Purpose

Do you hate what you do? This feeling might be holding you back from achieving the wealth you desire. It's not about avoiding work altogether; it's about finding work that aligns with your purpose and brings you fulfillment. When you have a sense of purpose, the effort and toil you put into your work become meaningful. Remember, humans are at their best when they engage in work that is worth doing.

### Embracing Challenge

To become the best version of yourself, you need to continually raise the bar and challenge yourself. Just like lifting weights, if you never lift close to your maximum, you start losing muscle. The same applies to mental strength. Embrace challenges and push yourself beyond your comfort zone. Increasing the difficulty level of the game you're playing will make it more enjoyable and rewarding.

### The Infinite Game

Life is not a finite game with a finish line. It's an infinite game where the goal is to keep playing and evolving. Whether it's your business, marriage, or personal health, the point is not just to reach a certain milestone but to sustain and improve over time. Shift your perspective from short-term wins to long-term growth. Focus on staying in the game and becoming the best version of yourself.

### Enjoying the Journey

While striving for wealth, it's important to find joy in the process. Wealth is not just about accumulating money; it's about finding activities and passions that you can immerse yourself in for a lifetime. Be open to the evolution of your interests and embrace the fact that what brings you fulfillment may change over time. Remember, at the end of the day, you can't take any of it with you.

### The Importance of Perseverance

Success is not guaranteed, but as long as you never quit, you are always winning. Winston Churchill said it best: 'You win as long as you never quit.' Perseverance is key to achieving your goals and enjoying your life and wealth. Keep pushing forward, overcome obstacles, and never lose sight of your vision.

### Conclusion

In conclusion, the blueprint to becoming a millionaire involves finding work that aligns with your purpose, embracing challenges, adopting an infinite game mindset, enjoying the journey, and persevering through obstacles. Stay committed to your goals, surround yourself with a strong team, and continue learning and growing.

Stay tuned for the final part of our journey towards financial success, where we will explore the importance of giving back and leaving a lasting legacy. Remember, building wealth is not just about personal gain but also about making a positive impact on others and the world.

Until next time,
[Your Name]

The Blueprint to Becoming a Millionaire - Part 4

Someone whose net worth is in excess of a million dollars.

Someone who earns a million dollars per year.

Someone who has a million dollars in their bank account.

Net worth includes the value of all assets, while liquid net worth only includes cash.

Net worth includes the value of all assets, while liquid net worth includes assets that can be easily traded.

Net worth includes debts, while liquid net worth does not.

Net worth includes the value of primary residence, while liquid net worth does not.

By owning assets that had a net worth of a million dollars.

Earning your way there and winning the lottery.

Owning your way there and inheriting a million dollars.

Earning your way there and owning your way there.

Investing in stocks and starting a business.

By saving 100% of your income for a decade.

By owning assets that generate income or can be sold for a million dollars.

Earning your way takes longer but is more reliable, while owning your way is faster but riskier.

Earning your way is riskier but faster, while owning your way takes longer but is more reliable.

Earning your way requires more capital, while owning your way requires more time.

There is no difference between the two methods.

It increases risk and decreases potential returns.

It prevents you from exploring new opportunities.

It limits your focus and prevents you from achieving outsized returns.

Diversify your investments from the beginning.

Focus on one thing until you achieve success, then diversify.

Diversify your time and attention between multiple opportunities.

Diversify your income streams as soon as possible.

Uninformed optimism, informed pessimism, valley of despair, informed optimism, achievement

Informed optimism, informed pessimism, valley of despair, achievement, uninformed optimism

Achievement, informed optimism, uninformed optimism, informed pessimism, valley of despair

Valley of despair, uninformed optimism, informed pessimism, informed optimism, achievement

Understanding the levels of wealth creation

Defining the avatar, product, and channel

Pain, purchasing power, easy to target, growing market

Pain, competition, low cost, large market

Purchasing power, easy to target, growing market, low competition

Pain, purchasing power, easy to target, high demand

The effectiveness of your marketing and sales

The amount of competition in the industry

Diversify across multiple channels to acquire customers

Focus on improving and expanding one channel to acquire customers

Diversify the products or services offered to customers

Focus on targeting multiple customer avatars

Focusing on one avatar, one product, and one channel

Dream outcome, perceived likelihood of achievement, effort, and sacrifice

Quality, features, benefits, and customer testimonials

Target audience, marketing strategy, product uniqueness, and customer reviews

Warm outreach, content posting, paid ads, cold outreach, referrals, employees, agencies, and affiliates

TV commercials, radio ads, newspaper ads, billboard ads, social media ads, email marketing, influencer marketing, and SEO

Word of mouth, print advertising, direct mail, event sponsorship, online banners, radio spots, TV spots, and social media posts

Online ads, search engine marketing, social media marketing, email marketing, content marketing, influencer marketing, affiliate marketing, and video marketing

Hire an agency to run all advertising methods

It saves money on hiring marketing and sales professionals

It allows the founder to learn important skills for long-term success

It ensures a higher conversion rate in marketing and sales efforts

It increases the founder's charisma and conviction in the product

Take big risks and bet everything on new ventures

Fortunes are created through taking huge risks with small amounts of money and preserved by taking small risks with lots of money.

Fortunes are created through taking small risks with lots of money and preserved by taking huge risks with small amounts of money.

Fortunes are created and preserved by taking huge risks with small amounts of money.

Fortunes are created and preserved by taking small risks with lots of money.

To attract prospects and convert them into customers.

To attract customers and make them repeat customers.

To attract candidates and turn them into employees.

To attract prospects, customers, candidates, and employees in order to grow the business and provide value to customers.

Advertising to prospects and customers, as well as advertising to candidates and employees.

Advertising to customers and candidates, as well as advertising to prospects and employees.

To ensure long-term wealth and preserve the enterprise value of the company.

To make quick money and increase personal net worth.

To attract more customers and increase revenue.

To expand the business and acquire more assets.

Providing value and creating goodwill for customers.

Associating with celebrities and influencers.

Advertising and marketing to a wide audience.

Investing in expensive luxury items and experiences.

Compounding allows wealth to multiply and grow exponentially over time.

Compounding is a risky investment strategy that can lead to significant losses.

Compounding is only effective for short-term gains, not long-term wealth building.

Compounding is a method to diversify investments and reduce risk.

Living a life of luxury and extravagance.

Playing the game of wealth building and continuously using money to make more money.

Becoming a billionaire and achieving unlimited wealth.

When they have a purpose derived from their work

- The video discusses the blueprint to becoming a millionaire and the levels involved.
- Level 1 focuses on the fundamentals of wealth creation and defines a millionaire as someone with a net worth over a million dollars.
- The difference between liquid net worth and net worth is explained.
- The speaker, Alex, shares his own experience of becoming a millionaire in his 20s and helping others achieve the same.
- The two ways to become a millionaire are earning your way there or owning your way there.
- The importance of focusing on one thing and avoiding diversification is emphasized.
- The stages of entrepreneurship and the importance of perseverance are discussed.
- The concept of the long game and building a stable foundation for wealth creation is introduced.

- Building a successful business requires a long-term perspective and a strong foundation.
- Rushing to build a business can lead to mistakes and hinder growth.
- It is important to focus on building a quality product or service before investing heavily in marketing and sales.
- Building a strong foundation involves continuously improving and satisfying customers, rather than solely focusing on marketing and sales.
- When hiring, prioritize finding talented individuals rather than simply filling positions.
- To find a hungry crowd and succeed in a market, consider factors such as customer pain points, purchasing power, ease of targeting, and market growth.
- The key to reaching a million dollars in revenue is to focus on one specific target audience, offer one product, and utilize one marketing channel effectively.
- It is not necessary to diversify marketing channels at the early stages of business growth.
- The goal is to build the business correctly from the beginning and avoid over-complicating it.

- The fastest way to reach a million dollars is to focus on one avatar, one product, and one channel.
- The value equation consists of four variables: dream outcome, perceived likelihood of achievement, time, and effort/sacrifice.
- Craft offers that increase the dream outcome and perceived likelihood of achievement while decreasing the time and effort/sacrifice.
- Understanding these variables helps create compelling offers that generate revenue.
- Offers affect all departments of a business and should be continuously improved.
- There are eight ways to advertise: warm outreach, posting content, running paid ads, cold outreach, referrals, employees, agencies, and affiliates.
- Start with the core four advertising methods and then expand to the other four for more leverage.
- Founders should be involved in marketing and sales processes to learn and guide future hires.
- Sales processes should be choreographed and refined based on trial and error.
- Repeat successful sales processes at each level to generate revenue.

- The importance of following a sales script to maximize the likelihood of making sales is discussed.
- The concept of paying oneself as an entrepreneur is explored, emphasizing the need to balance risk tolerance and personal spending.
- Different methods for setting goals are presented, focusing on activities rather than outcomes.
- The scientific method is suggested as a way to set goals for portfolio companies.
- The idea of getting rich once and avoiding high-risk bets is discussed, with a quote from Jeff Bezos emphasizing the importance of taking bold risks with small amounts of money.

- Fortunes are created through taking big risks with small amounts of money, but preserved by taking small risks with lots of money.
- The Quad Marketing Calendar concept involves marketing to prospects, customers, candidates, and employees in all directions.
- Building wealth involves creating reliable and risk-free systems and structures within a business.
- Reputation and branding are important in building wealth, as associations and experiences shape how others perceive and value a brand.
- Providing value and creating customer surplus or goodwill can lead to exponential growth and success in a brand.

- The video discusses the importance of building a strong personal brand and the potential for exponential growth and monetization.
- It emphasizes the need to protect one's reputation and avoid risky decisions that could negatively impact the brand.
- The concept of compounding is explained, highlighting its power in wealth building over time.
- The video advises against diversifying investments and instead focusing on equity for maximum compounding potential.
- The importance of patience and delaying gratification is discussed, using the example of the marshmallow test.
- The two levels of wealth are identified as personal needs being taken care of and the unlimited level of wealth where money is used to make more money.
- The video encourages individuals to determine their personal dream list and realize that their needs may be less than they originally thought.
- Finally, it emphasizes the enjoyment of the wealth-building game rather than simply not working.

- Enjoying wealth is not about not working, but about getting addicted to freedom and having the option to work.
- Humans are at their best when they have purpose and derive satisfaction from their work.
- Continually raising the bar and facing challenges helps to maintain mental strength and personal growth.
- The goal is not to achieve a specific outcome, but to continue playing the game and enjoying the process.
- The point is to stay in business, stay married, and maintain good health for the long term.
- The key to winning in life is to never quit.

- The video discusses the blueprint to becoming a millionaire and the levels involved.
- Level 1 focuses on the fundamentals of wealth creation and defines a millionaire as someone with a net worth over a million dollars.
- The speaker, Alex, shares his own experience of becoming a millionaire in his 20s and helping others achieve the same.
- The two ways to become a millionaire are earning your way there or owning your way there.
- The importance of focusing on one thing and avoiding diversification is emphasized.
- The stages of entrepreneurship and the importance of perseverance are discussed.
- Building a successful business requires a long-term perspective and a strong foundation.
- Rushing to build a business can lead to mistakes and hinder growth.
- It is important to focus on building a quality product or service before investing heavily in marketing and sales.
- Building a strong foundation involves continuously improving and satisfying customers, rather than solely focusing on marketing and sales.
- When hiring, prioritize finding talented individuals rather than simply filling positions.
- To find a hungry crowd and succeed in a market, consider factors such as customer pain points, purchasing power, ease of targeting, and market growth.
- The key to reaching a million dollars in revenue is to focus on one specific target audience, offer one product, and utilize one marketing channel effectively.
- The value equation consists of dream outcome, perceived likelihood of achievement, time, and effort/sacrifice.
- Craft offers that increase the dream outcome and perceived likelihood of achievement while decreasing the time and effort/sacrifice.
- Understanding these variables helps create compelling offers that generate revenue.
- There are eight ways to advertise: warm outreach, posting content, running paid ads, cold outreach, referrals, employees, agencies, and affiliates.
- Start with the core four advertising methods and then expand to the other four for more leverage.
- Founders should be involved in marketing and sales processes to learn and guide future hires.
- Sales processes should be choreographed and refined based on trial and error.
- Repeat successful sales processes at each level to generate revenue.
- The importance of following a sales script to maximize the likelihood of making sales is discussed.
- The concept of paying oneself as an entrepreneur is explored, emphasizing the need to balance risk tolerance and personal spending.
- Different methods for setting goals are presented, focusing on activities rather than outcomes.
- The scientific method is suggested as a way to set goals for portfolio companies.
- The idea of getting rich once and avoiding high-risk bets is discussed.
- Fortunes are created through taking big risks with small amounts of money, but preserved by taking small risks with lots of money.
- The Quad Marketing Calendar concept involves marketing to prospects, customers, candidates, and employees in all directions.
- Building wealth involves creating reliable and risk-free systems and structures within a business.
- Reputation and branding are important in building wealth.
- Providing value and creating customer surplus or goodwill can lead to exponential growth and success in a brand.
- The video discusses the importance of building a strong personal brand and the potential for exponential growth and monetization.
- It emphasizes the need to protect one's reputation and avoid risky decisions that could negatively impact the brand.
- The concept of compounding is explained, highlighting its power in wealth building over time.
- The video advises against diversifying investments and instead focusing on equity for maximum compounding potential.
- The importance of patience and delaying gratification is discussed.
- The two levels of wealth are identified as personal needs being taken care of and the unlimited level of wealth where money is used to make more money.
- The video encourages individuals to determine their personal dream list and realize that their needs may be less than they originally thought.
- Finally, it emphasizes the enjoyment of the wealth-building game rather than simply not working.
- Enjoying wealth is not about not working, but about getting addicted to freedom and having the option to work.
- Humans are at their best when they have purpose and derive satisfaction from their work.
- Continually raising the bar and facing challenges helps to maintain mental strength and personal growth.
- The goal is not to achieve a specific outcome, but to continue playing the game and enjoying the process.
- The point is to stay in business, stay married, and maintain good health for the long term.
- The key to winning in life is to never quit.

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Chapters
0:00 Level 1 - Foundations of Wealth
13:08 Level 2 - Make a Million
38:27 Level 3 - Stay Rich, Get Richer

This is the blueprint to becoming a millionaire and I'm going to walk you through the levels to becoming 1.

Level 1 is the fundamentals of wealth creation and we're going to start with what even is a millionaire?

It's someone whose net worth, excluding their primary residence, is in excess of a million dollars.

For example, let's say you own a 1000000 dollar house and you owe 500000 dollars on it.

If you had nothing else saved up in your bank account, which I would hope that you did, but let's just say you had nothing else saved up in your bank account, then your net worth would be 500K.

In this instance, you would not be a millionaire, right?

Now let's call this a $1 million house and you owed nothing on it, your net worth would be a million dollars.

Now, there's a difference between having a liquid net worth versus a net worth.

A liquid net worth is assets that you can trade in and out of.

So if I had a million dollars in cash in my bank account versus owning assets that were worth a million dollars, those are different things.

And you might be wondering, how does Alex have any authority to speak on the subject?

I had my first cash million in my bank account when I was 27 and I crossed $100 million in net worth by age 31.

So I became a millionaire a hundred times in a row.

So I can tell you how to do it at least once.

And I've helped over a hundred other people create million dollar plus net worths over my career.

And those are just the ones that I know about, let alone all the people in our community have done a lot better than that.

And so we go to step 2 in this little journey of ours which is equity.

Because there's 2 ways that you can become a millionaire.

You can earn your way there or you can own your way there.

And the faster way is to own your way there and that's what I'm gonna walk you through.

So I'm gonna walk you through both examples of earning your way there which is how I first thought it was versus owning.

So if I want to earn my way to a million dollars then I'm going to need to make 2000000 dollars over x period of time and then divide that by 2 because of taxes to get to my 1000000 dollars.

Let's say I'm making 200000 dollars a year and I make 200000 dollars a year for a decade.

That's assuming that you saved 100% of your income.

You'd be able to earn your way to $1 million in liquid net worth.

On the other hand, you can own your way, meaning that you own assets, either, you know, which could be businesses or real estate, which are probably the 2 most common assets that people own that are trying to invest.

When I say invest, when you are an entrepreneur, you are investing, you're just heavily indexed on 1 stock, which is your own.

Let's say that I create a business that gets to $250,000 per year.

In some instances, I might be able to sell this company if it was truly automated and had a team of people that worked without me needing it I could sell this at probably a 4 times multiple and this is again that would be a very good multiple for a business that is doing that kind of profit because this is actually a small amount of profit for when we're talking business sales but that would get us to a $1 million net worth.

Because we own 100% of this business that makes $250,000 a year in profit without us working at all, and we could sell that for a million dollars.

It's like, okay, well, 1 of these takes 10 years.

This 1 is just how long does it take me to automate the creation of $250,000 a year.

And so what's interesting here is that almost the actual income between the 2 is almost identical.

But as soon as you achieve it, you almost already have the net worth because here, time is working against you because you have taxes and you have your living expenses that are cutting out of this every single year.

Whereas here, you get the multiplier without your living expenses with time being an ally for you.

Which takes us to the next step on our journey.

Diversification to quote Uncle Warren is a hedge against ignorance.

You only diversify if you don't know what you're doing.

I actually am approaching diversification from a focus perspective, which is what's the 1 thing that you're going to invest your most valuable resource because when you're early on, you don't have that much money.

So your most valuable resource isn't your money, it's your time and your attention.

I'm going to look at long-term investing in real estate.

I'm going to look into starting an ATM business.

I'm going to look at, you get the idea, right?

So let's say this is you, and This is your time and attention that you have to pursue any new opportunity So you say I need 7 income streams because the average millionaire has 7 income streams So I'm gonna spread myself thin between 7 different opportunities and while I do that I'm gonna be multitasking trying to fill different cups at the same time with different colors and I'm somehow going to wait until 1 of these things takes off.

I have to see which ones of these will work.

But the reality is it's not which of these ones will work.

Any of them could work if you put the work in, but you have to reach a threshold.

Once you get to the top, the extra cash starts spilling over and you actually have a profitable opportunity.

Which 1 of these cups is closer to spilling over?

You going in on 1 thing, or are you spreading yourself between 7?

And the reason that this myth continues to proliferate is because it's absolutely true that people who are the wealthiest have multiple income streams.

But what's not true is about how they got there.

The wealthiest people in the world go all in on 1 income stream and they keep adding it up over and over and over again until it overflows.

And then once it overflows, because they're making so much money from their 1 opportunity, they then start diversifying back between the other different ways.

But they made their wealth focusing on 1 thing, and then they maintain their wealth by distributing it.

You don't make money by splitting your attention up.

You make it by focusing on the 1 thing that matters most.

Well, I do have experience doing this 1 thing, and so I'm gonna ignore all of these other opportunities and just go all in on 1 thing.

The reason I'm such a big advocate of focusing your attention on 1 thing is that this is where you get disproportionate returns.

Because I think it's very arrogant to think that your 10% of your attention, where you're not even that good at business to begin with, spread between 10 things, is somehow going to compete against somebody who's putting all of their effort on 1 thing.

But here's the fallacy that most people who are starting out don't get.

They think I'm going to try all of them and see which 1 works out.

Or rather, I'm going to try and start multiple things and see which 1 takes off.

But the reality is that all of them could take off, or none of them could take off, but it's solely based on which 1 you work on.

So it's not which 1 will work, it's which 1 will you work on.

You want to go as fast as possible through the I have no idea what I'm doing phase, so you can get to the I do know what I'm doing phase, and I understand the risks that are associated with this, and that's why I don't wanna diversify because I actually get outsized returns here.

There's 5 stages that you go through as an entrepreneur when you're considering a new opportunity.

This is where you are uninformed, but you're like, man, this opportunity sounds so great.

Look at all these people making all this money.

And so then you dive in and then you get to something called informed pessimism.

You're like, oh, wow, this isn't as easy as I thought.

There's all these other things that they didn't talk about in this ad or in this highlight reel that they show me on this YouTube short about this person that made a thousand dollars a day going from nothing from her home, right?

So then what happens next is you keep working on it and then you get into the valley of despair.

This is where most people quit and this is what most people do now.

They find another 1 of these things to get into and they go all the way over back here because they think, oh no, this 1 has doo-doo on this side of the fence.

So I'm gonna go to the other side of the fence where the grass is green.

But what they don't realize is when they get into that side, it's completely made of manure.

And that's why the grass is so green, right?

You just didn't know about it until you got there.

And so what happens is people keep repeating the cycle over and over and over again And they never make progress and so here's the thing is that when you do find something that you're like You know what I kind of like this.

This is harder than I originally thought I need to keep learning Wow this is actually really hard.

There's a lot more pieces to this than I understood at the beginning.

You then start to have informed optimism.

You now start to realize you've wrapped your arms around whatever the opportunity is or whatever thing you're pursuing and you're like, okay, I haven't gotten there yet, but I understand the math.

I understand the process of getting where I am to where I'm trying to go.

And ultimately, this is what I'm trying to do with this blueprint for you, is if I can help you tackle as much of this, or at least compress the time that it takes you to get here, that's a big victory for me.

And then you finally get to the final phase, which is achievement, which is you actually accomplish externally what you set out to.

And most newbies fall out between here and here and then start this process over again.

So most people only relive this over and over and over again without ever making it to here.

Which then naturally leads you to here because then you have no desire to diversify because you now get it.

You say, this is where I want to go next.

And because you've been through this process once, you understand that, you know what, me going after this 10 times bigger goal sounds amazing.

I'm going to find out there's some stuff that sucks.

There's going to be a period where it's going to really suck.

And it's going to feel hopeless because I don't see how how to get through it I'm gonna keep chugging and then understand how to get there and then I'm gonna get there I'm gonna repeat the process.

So now we go to the last part of level 1 of becoming a millionaire.

If I told you to build the tallest tower you possibly could in 10 seconds, here's what you might do.

Now, imagine I told you to build the tallest building you possibly could in 10 days.

Do you think this is gonna last a long time?

So I might build it piece by piece from the ground up with more stable bricks from day 1.

And I would keep doing it this way, right?

And I'd keep adding and keep adding and keep adding.

And then when 10 days came, I might be 5 stories high.

And so the reason this is such an important frame shift for people is that the fact that they're in a rush causes them to build the thing they want to build differently.

The fastest way to get to this tall is to build it the exact way I did earlier.

But if I then said I need you to build something that's 10 stories tall you would never get there.

And what happens is people get stuck right they get stuck at this level and they can't add another 1 on top.

And they stay here and they're like, why can't I get my million dollar business to 10 million dollars?

And it's because you built it wrong to begin with.

See all Alex Hormozi transcripts on Youtube

If I Wanted to Become a Millionaire In 2024, This is What I'd Do [FULL BLUEPRINT]