I like to think about this through the lens of opportunity cost, which is if I'm currently making, let's say, a 500,000 a year from my business in every cashflow that's owner earnings. If I were to spend half of my time thinking about actively investing, then what happens is your active income will fall at a disproportionate rate compared to what your money is making you. And so for me, it's my belief that A, you should be ripping out cash on a regular basis because that's downside risk protection. It's not your upside. The likelihood that you're going to sell that business for a big number is extremely, extremely, extremely low. Right? So
It’s all about the timing. Today, Alex (@AlexHormozi) talks about the thought process of investing and some frameworks he used to help you know and decide when it’s the right time to invest.
Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.
Timestamps:
(1:45) - Think through opportunity costs
(4:34) - Save 6mo-2yrs living expenses, take loan against assets
(5:20) - Invest time in growing income
(7:58) - Invest in gaining skills, find ways to generate revenue
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(This episode is a re-run. Original airdate was June 22, 2021)