E19: 7 Steps to Financial Success with Jarrett Hodson
In the world of personal finance, there are two goals that everyone seems to be striving for: wealth and happiness. Some people believe that you cannot have both at the same time. The truth is it’s possible to be wealthy and happy — but it takes a lot of hard work, dedication, and patience.
Matt O’Neill and Jarrett Hodson discuss the seven steps you must take to build wealth. They talk about how wealth can lead to good moods and happiness.
Here are some power takeaways from today’s conversation:
- Find your desire to be wealthy.
- Develop a work ethic.
- Choose a niche and keep going at it.
- Make more money than you spend.
- Balancing risk and leverage.
- Invest in what you know.
[3:08] Wealth and Good Moods
Wealth makes it easier to explore ways to be happy and accomplish your goals. It also helps you be more honest and confident. Truly wealthy people don’t like short-term relationships and tend to be humble.
[5:09] Having a Burning Desire
Everyone wants to be wealthy. The first step to becoming wealthy is to have a burning desire. You will not make it without a burning desire to have what you want. Do you want what you want badly enough?
[11:23] The Importance of Work Ethics
Do whatever it takes to get what you want. That means doing something every single day to make more money. You must train yourself to have a work ethic — it’s not an innate ability. Every successful person has a powerful work ethic. Consistency and commitment lead to success.
[21:17] Pick a Niche and Keep Going
The third step is focusing on a niche. Then do not stop until you are great at it. It would be easier to focus on something smaller. So pick a niche with evidence of people having financial success in that particular niche. And then invest time into showing up and doing the hard work.
[27:39] Make More Than You Spend
You need capital to invest to grow wealth. While there are ways to make a quick buck, such as crypto, it’s not a path to wealth. You should always find a way to keep some measure of savings, whether it’s cutting expenses or making more money — or both.
[32:36] Leverage Risk
Letting an opportunity pass by is a risk. Leverage is crucial to creating wealth. Every leverage comes with risk. Matt and Jarrett diverge when it comes to debt. But they agree that investing is important.
[37:50] You HAVE to Invest
Invest in yourself, your business, and something you are an expert at. You can either set investment goals or buy when the opportunity presents itself. Invest in what you know. Or study what you want to invest in. Diversify your portfolio.
Notable quotes:
[22:59] “If you can focus for five years with every single day, you’re showing up and grinding, you’re going to be successful no matter what career path you’re going down.”
[26:39] “Choose a niche that is proven to have results.”
[38:06] “You first invest in yourself. And then you invest in a business. And then you invest in something that you're an expert at.”
Resources Mentioned:
Think and Grow Rich by Napoleon Hill
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