How to Actually Get Rich in Your 20s: Insights from Alex Hormozi

DON'T consume Alex's business content if you're in your 20's.

There's a reason why consuming a bunch of business advice feels out of place as a young man.

"If you're a younger guy and you're just getting started. Like, you don't have a business. I don't make as much content anymore for people who are getting started." - The Game Ep | 755

Until... he gave us this BANGER.

For context: my name is Denzil Duke. I'm trying to land my first marketing role by learning video editing and freelancing.

Yes, an entrepreneur at heart.

Back to Alex, his recent content has focussed solely helping business owners. A change in marketing strategy to improve his conversions and audience capture.

If you're young like me, most of his content falls under: right advice, wrong time.

As Hormozi hammers down in his content, rather than cashing in early, learn as much as you can.

So, for this article, I'm going to share notes and ideas from his video. But, also combining ideas from other Hormozi content pieces.

Here are the TWO things I want to achieve from this summary:

1. Internalise important points of having a solid foundation
2. Share some stuff for my fellow young people

Be not deceived; God is not mocked: for whatsoever a man soweth, that shall he also reap. Galatians 6:7

Resourcefulness > Resources

We may think wealthy individuals are more fortunate than us. Or they got lucky.

Alex proposes in the game of entrepreneurship, you work with what you got.

Take inventory.

What specific knowledge or inclinations do you have?

A common resource nearly all young men have is TIME.

It's what you choose to do with that resource rather than the resource itself that makes the difference.

Because, we all have the same time.

Matter of prioritisation and a bit of creativity.

(For creativity actualises itself from the chaos of infiniteness as order.)

Incremental Improvements Through MANY Repetitions

In this Spotify podcast, Alex goes more in depth for the season in your 20's.

Essentially, work out the ONE activity that you can rack up repetition and see incremental improvements.

Cold calls, sales interactions, reach-outs, video edits, video shoots, designs, etc.

What if I don't know what to work on?

I emphasise how important it's to know your own strengths.

Take some time to reflect.

What can you see yourself doing? And work towards that direction.

(Passion comes after competency. There's going to be a period of sucking at your chosen craft. Once you start achieving some level of mastery, is when you start enjoying yourself.)

Your First Financial Goal: Save Up $100k

Alex takes this wisdom from former chairman of Berkshire Hathaway Charlie Munger.

"The first $100,000 is a bitch, but you gotta do it. I don't care what you have to do if it means walking everywhere and not eating anything that wasn't purchased with a coupon, find a way to get your hands on $100,000. After that, you can ease off the gas a little bit." – Charlie Munger

By having $100k in cash, you can let your foot off the gas a bit.

Make bigger bets on yourself by not having to worry about tomorrow.

A 'runway' as Alex puts it.

Because, if it costs you $5k/month to live, you've got 20 months of 'runway' to launch yourself to the next chapter.

Speaking of living costs...

Make Survival As Low As Possible

Hormozi has a saying with breaking down costs:

"Hormozi meals. Hormozi mobiles. Hormozi mansions.

Let me breakdown each section.

Mozi Meals

Stop eating out.

(If you're dirt poor)

Of course it's cheaper to prepare and eat at home.

However, Hormozi makes a point in the video below that once you reach a pay bracket you buy back your time lost in shopping, cooking and cleaning.

He argues, once you make over $25/hour, it makes sense to eat out to buy back your time.

In Hormozi's context, he would make $500/hour from selling memberships. So, rather than spending the hour on food prep, he would sell and pay for the meal.

For my American readers, Chipotle, Panda Express and Chick Fil-A are the fine establishments he frequents.

I'm sure you young men know about getting, "1 gram of protein for each pound of body weight."

The cheapest recipe I would have everyday, if given the choice, is rice and beef mince. Add a side of cheese, butter, avocado or sauce of choice.

I'm sure if you're in the game of cutting costs and building wealth, you'll be able to calculate the cheapest protein around.

(From what I found, it's beef mince and chicken)

Mozi Mobiles

Buy your car secondhand and ideally in cash.

Because the car costs a lot cheaper, the insurance for it will be less as well.

Even Dave Ramsey says buying a car on loan is stupid because you'er buying something you cannot afford.

(Car dealerships are financial companies disguised as automobile dealers. They make their money on the finance, not the car itself.)

Mozi Mansions

Keep the cost of a roof over your head as low as possible.

For Hormozi, it meant living in a share house with six other people.

For you, it might mean living with your parents.

"What about my privacy?"

Are you okay to pay the price?

Think In Terms Of Time

Hormozi used to work at smoothie shop for like $6/hour.

He'd work a 6 hour shift and would go over to the sandwich shop next door to pay for lunch. After paying 15% payroll tax, you're left with $30. And he'd spend $15 on a sandwich.

If someone said,

"Work three hours, and I'd give you this sandwich"

Would you work it?

Or, even reverse the sequence of reward and work.

"Here's this sandwich. Now, work for three hours."

Reframing items in terms of time can make you reconsider the value of that item.

The ONE Habit That Will Change Everything

Want to know what it is?

Going to bed on time.

It's hard to wake up early when you go to bed at 9pm. You're probably not going out if you're hitting the sack.

Less chance of getting into accidents. You'll feel more alert during the day.

Even myself, getting a good nights sleep makes a WHOLE lot of difference.

(If you're someone who's used to staying up 'til midnight, it's tough.)

Get In Shape EARLY

As Alex points out, guys who are in shape will do better than those who are out of shape.

Why should your appearance affect your performance?

There's something called the Halo Effect. People will perceive you more positively if you're more attractive.

Better looking, you do better all round. Get in shape now.

It takes time.

And as young male, you've got a lot of it.

How To Not Resent People Dumber Than You

At times, you might feel like you're smarter than the people in better positions than you.

The truth is the guys ahead might know more than you.

As Alex says, they may be dumber. But they might know more.

Quick Fire Round

This section contains quick one liners that I picked up from Alex's video.

Have a read. Ponder upon it. Meditate on it.

Your reference group is what determines your future.

The friends you have might be out of convenience.

If you want to be exceptional, you have to be the exception.

You impress rich people by working and not by your possessions.

Analyse data by collecting large volume of repetitions.

Manage the ratio between spending : saving.

There is zero advantage in being accurately judged.

Personal excellence is the ultimate rebellion. – Andy Frisella

Your ability to delay reward reflects future success.

Work with the intention to always improve.

As you grow older, your perception of time will speed up.

Will drinking alcohol help me achieve my goals?

Closing Statement

Probably one of the more important lessons in Alex's video at 17:04.

"Use your action, your doing-ness, the thing you use your hands for as your coping mechanism. Whenever you have that feeling that things should be happening faster, use action as you coping mechanism. Action alleviates anxiety."

The only thing that will stop you is fear.

The fear of failure. Being laughed at by your peers. Being a disappointment to your parents.

For Alex, his greatest fear is not living up to his potential.

Just know this...

The only wrong answer is doing nothing at all.

BONUS Material

Here's his full playlist for getting rich in your 20's on YouTube.