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Income

What is the meaning of return on investment (ROI)

That’s one of the words that you’ve got to learn, ROI. We think in terms of return on investment. Your assets, your liability. But we also think in terms of return on time invested. Return on, ROTI, return on time invested. That I invest this time doing this thing, what’s my return? Right? So I know if I spend two hours watching the movie, that movie then doesn’t just cost me $20, $30, $40. That movie cost me thousands of dollars, if not tens of thousands of dollars. Then I know that when I watch a movie, I have to ask myself, and not that I don’t watch movies.

I love watching movies. But I know also a practice that is not a $40 thing. That cost me tens of thousands of dollars. So then I need to ask myself, “OK, it’s the escape, it’s the experience, is that worth that kind of money?” And I look at and I say, “OK you know what? It is. It is.” If I take the time off and spending with my family that hour costs me money but I’m willing to spend that. Very consciously, versus people who have a concept. I know that I’m investing my time, that’s worth X amount of dollars, with spending, I’m not trying to make money from this hour, two hours, I am spending with them. I am investing at that time. And when you think of it that way, guess what? You’ll be more present.

That’s why every time I watch a movie, rarely I say a movie is so bad. No, it’s OK, at least I can justify a little bit mentally that shit this movie just cost me fucking $20,000 it’s pretty good. Right, it’s $20,000 of my time, right? So joking aside, that’s what it is. You’ve got to think of it that way, how you value your time. So that’s what rich people do, rich people buy time. If you don’t value your time you’re not going to be successful. You have to value your time.

Everything, Bill Gates has appointment, booking, six-minute increment. Six-minute increment in his calendar. That’s a billionaire, right? My mentor has his in 15-minute increments. Now I also have my thing, sometimes 30 sometimes 15-minute increments. How you manage your time, how you invest your time, your most valuable investment that you have. So there you go, that’s what rich people buy, the one thing that they buy that the poor and middle class don’t. Don’t look at just what they have, their fancy car and that’s the thing.

Before we go. Because maybe when you have no money, you’ve been struggling for so long, you have been working hard for so long. And suddenly when you make a little bit of money and all the images that you have about rich people. All the nice things, the nice car, all the things that they have. Suddenly you make a little bit of money, I’m not talking about a lot of money, a little bit of money. And you say I want a fucking, I’ve worked 15, I waited 10 to 20 to 30 years for this. Fuck it, I want that life. And you go spend your money and you think by spending that money that makes you rich. That makes you poor. That doesn’t make you rich.

You only see the surface, you see the result, you see the outcome, you don’t look at the fucking process. Look at how they got rich. They buy the assets first. Before they buy their fancy watch, they buy the investment. The investment makes them money, then they buy the fancy watch. But you don’t want to do that, suddenly you make a little bit of money because you’re so insecure. You gotta big ego, you want to show the world, you want to show your family that you’ve fucking quote-unquote made it. Which you haven’t, you want to look rich versus be rich. You go to buy that watch and you know what? You wear that watch and you thought you fucking made it.

Everybody thought you made it. You did not make it, you just made yourself poorer. That’s not what makes you rich. But if you can have the self-discipline and self-control and say you know what I’m gonna buy the assets first. I’m gonna buy the assets first, once you buy that and the assets you can buy all the fucking luxuries you want. Your assets pay for it. It’s OK, buy the nice things you want. It doesn’t quote-unquote cost you because you’re investments are providing for you. Investments are feeding you. It’s making you money. That’s the difference. So think about that. Don’t just look at, “Oh I want the nice things.”

The nice thing is the result that’s the next step. First, you gotta build a portfolio, I didn’t have nice things for the first 10 years of my life. It’s only now I quote-unquote after all these years. OK, now I have people say, “Oh Dan, you’ve got the.” I didn’t have the over-night. I was driving, you know, Mazda for a number of years. And Audi, not that Audi’s a bad company, it’s OK but it’s not a Bentley.

For a number of years. Only recently, now I’m enjoying life. And people look at they look at where you are today but they don’t look at where you came from. Comment below, share with me what’s one thing that you think poor and middle-class boy. I’m curious to hear your thoughts. The people that you see, the poor and middle class buy. Share with us, share it with me. Also, give me a thumbs-up as well.

Subscribe to my channel, turn on notification, we upload a new video every single day on business. On relationship, also on martial arts. That’s what my channel’s about, it’s my life it’s what I do, just like this, going to downtown. Getting stuck in traffic and answer your questions, that’s a good return on time invested. Even in the car and stuck in traffic, I’m making a video for you, right? That’s how you utilize your time that’s how you’re being smart with your time. Check out my other Boss in the Bentley video, right there. We have a lot of videos you can check out. A lot of interesting questions, a lot of interesting insights. Until next time, I’ll see you in my Bentley.

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