Transcription
At what net worth does life fundamentally change? 5 million. Liquid. Liquid.
What would you say are the main four tiers of wealth, where if you hit a certain amount life? >> I tell everybody this. You should strive very hard if you're an entrepreneur to have $5 million in T-bills. Not in anything else, just T-bills making 3.82% this morning. You know you've made it and you've safeguarded your family for the rest of your life if you can get $5 million liquid in T-bills.
Most people that consider themselves very successful entrepreneurs do not have $5 million liquid in T-bills. They don't. But what net worth should you be at to have to justify 5 million in T-bills? Well, you should be at The first thing you should do is get to 5 million liquid. Be worth $5 million liquid. That's far more valuable than anything else. Liquidity with wealth is actually a superpower. Most people say I'm very wealthy, but they couldn't raise a million dollars by 2:00 in the afternoon if they tried. It's tied up in all kinds of things they think are worth a lot until the hits the fan.
The plan is if you're an entrepreneur, the hardest thing is to make the first million. Really hard. And when you make the first million, put it in T-bills. Just as hard, but not as hard, is to get to 2 million. Two to three is actually quite easy cuz you figured something out. But where you get undisciplined is you start buying you don't need cuz you're mad at yourself to 5 million liquid. I You have to have 5 million liquid to call yourself a successful entrepreneur. And I don't care who who disagrees with me, they're wrong.
But if you have a net worth of $5 million, why would it all be in T-bills instead of having it in S&P and international index funds? Cuz whatever happens, you're safe and your family. >> So you say get to 5 million T-bills and then anything after that you have >> after that, stick it in and I do go into stocks, go into alternatives. The nut is $5 million. And so the next net worth with the highest quality of life change would be what? You know, once once you get to 50, you don't even need any more money.