Alex Hermozy became a self-made millionaire when he was just 23 years old. Now in his 30s, the entrepreneur, investor, and philanthropist has an appreciation net value $100 million – and his next goal is to join the billionaire club.
So what is his investment strategy? This is not what most people think.
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Hormozi’s company, Acquisition.com, invests in startups. But the investment that yields the highest return over time is with one’s own knowledge, bestselling author and personal finance expert Dave Ramsey told a recent episode of Ramsay show.
“You will always get higher returns from investing in your education, your skill sets, than any stock market,” he said.
Hormozi’s father fled to the United States during the Iranian Revolution in 1979. “My father came here with $1,000. He didn’t speak English, but he had a medical degree,” Hormozi said.
He said: They took everything we had, but they couldn’t take away my education. So it is something that can never be taken from you. You can’t lose it.”
Education is valued over time
Hermozi’s philosophy revolves around viewing education as an investment. If you are learning math, for example, you can learn accounting. And if you learn accounting, you can learn how to invest.
Education is not about collecting certifications, but about obtaining credentials of utilitarian value, which can be used immediately.
Hormozi gave Ramsey the following example: If you work at a minimum wage job and set aside $500, you can invest that money to get a decent return over time by Compound interest. Or you can spend that money on a two-day course to become a phlebotomy (professional doctor trained in performing blood draws) and dramatically increase your income in a matter of days.
“This is a small example of how skills can give you more cash flow to invest in everything else,” Hermozi said. “Always keep reinvesting in skills because that raises your baseline level for earning a life.”
Read moreThis doorman in Vermont amassed a fortune of $8 million without anyone knowing about it. here The two simple techniques that made Ronald a rich reader – It can do the same for you
Micro-accreditation approach
Malcolm Gladwell popularized the 10,000 hour rule in his book, Outliers: A Success StoryAbout what makes high achievers different. Gladwell introduces the idea that it takes about 10,000 hours of deliberate practice to achieve mastery of complex skills – although he notes that no one succeeds at a high level without innate talent.
However, another approach is the micro-credential, which emphasizes competency-based learning of specialized skill sets. These credentials take much less time to obtain (and are usually less expensive) than a diploma or degree.
One of the main benefits of this approach is that learners can “Stack” mini credentialsbuilding additional skills over time, according to the World Economic Forum (WEF).
Thanks in part to the drive towards automation and the adoption of technologies such as generative artificial intelligence, employers estimate that 44% of workers’ skills will fail over the next five years, according to the World Economic Forum. Future Jobs Report 2023. Six out of 10 workers will also require retraining between now and 2027.
The report says that mini-certifications “have the potential to accelerate skill-based talent management and open up new talent pipelines.”
They may be able to open up new career paths—and higher earning potential—for those who do not have (or cannot afford) a college degree.
Why sadness is ignorance
However, many people remain penniless because they “subscribe to what all the poor people around them are telling them about how to get rich. So they take poor people’s advice on how to make money,” Harmozy told Ramsey. “And as a result, they keep doing the wrong things.”
Or they don’t do anything at all, remaining in a “paralysis parse” state. They’re always looking for that perfect money-making opportunity, but find themselves still searching—and still broke—years later.
“I define sadness as ignorance, as in you don’t know what your options are. So, whenever you feel hopeless, it’s because you don’t know what to do. But not knowing what to do is a problem that can be solved.
Harmozi pointed out that there is a lot of information freely available on the Internet to learn a Variety of employable skills. In some cases, it may take days or weeks, rather than months or years. So for those willing to kill the time, he says, “you can go ahead.”
It takes experience to become adept, and some may find the prospect of entering a new area overwhelming. For example, anyone can get into sales, but many people will wait years to make that first series of cold calls because they are afraid.
“Fear holds them back. They don’t want to fail,” Hermozi said. “They don’t want judgment that they think comes from people they don’t even notice.”
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
