One of the richest men in America is sharing with Dave Ramsey why so many people remain poor despite taking on saving and investing tips.
Alex Hormozi, 30, became a self-made millionaire by the age of 23 and is reportedly worth $100milllion.
His company, Acquisition.com, is known for investing in startup businesses and Mr Hormozi plans to join the billionaire club.
However, the businessman outlined on The Ramsey Show his surprising investing strategy which could reap savers dividends.
During the segment, the investor expert broke down his perspective to Mr Ramsey and how it came from his childhood.
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He explained: “You’re always going to get higher returns on investing in your own education, your own skill sets, compared to any stock market.
“My father came here with $1,000 [fled during the Iranian Revolution in 1979]. He didn’t speak English, but he had a medical degree.
“He said, ‘They took everything we had, but they couldn’t take my education.’ So it’s something that can never be taken from you. You can’t lose it.”
The multi-millionaire gave an example on Dave Ramsey’s show to illustrate his investing technique.
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When someone working a minimum wage job puts aside £400, they could invest that money to get a decent return over time via compound interest.
Alternatively, the same individual could spend that money on a two-day course to become a phlebotomist, which is a medical professional who is qualified to perform blood draws.
If they did this, they may be able to increase their income substantially within the space of a week.
According to the self-made millionaire, this non-traditional idea of investment shows how people
Mr Hormozi added: “That’s a micro example of how skills can give you more cash flow to invest in everything else.
“Always keep reinvesting in skills because that raises your lifetime baseline of earning potential.”
Furthermore, the entrepreneur cited that many people do not become rich as they “they subscribe to what everyone else around them who is poor tells them about how to get rich. So they take poor people’s advice on how to make money”.
Those interested in getting more savings and investing advice can follow The Ramsey Show for more guidance.
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