Where Should I Put $700K to Be Financially Free by 25?

0:00So, my name is Mahdi, I'm 19 years old. I started working online since I was 15. Started a bunch of businesses and failed. >> All right. >> And then I stumbled into my my previous successful business where I built a software to manage people's accounts. So, I'd have clients logging with 20 to 50 accounts and then my software would post uh these clients all over the these accounts. So, I'd save them time and effort. I ran this business for about 2 2 years and then the media companies basically patched what I was using. So, my business went from doing $100,000 a month in profit to zero. That being said, I built a massive network with influencers. So, I was able to bounce back and leverage those contacts. And now we run a management company where I get cheap labor from Asian countries to where they get paid a good salary from their countries. And it's still enough for me to make a profit.

0:52So, now my income is about 20 to 30,000 dollars a month in profit. It's still good money, but I basically cut down to a 70% loss. I was able to save up around 700,000 leading up to now. >> Okay. >> What do you think I should do? Do I continue running this business over or do I try and find another software that I can build to scale like my previous my previous business? The only reason I'm having issues scaling right now is is because my management company is labor intensive. So, I rely on the the

1:26>> Yeah, work. >> I hire from outside. >> You have a service business. You have a service business. >> So, it's hard to find competent people to work for me. >> Well, I mean, welcome to business. >> Yeah, another thing is with me being 19 years old with this much of money, I've basically lost most of the relationships I had because everything now revolves around my money is what [clears throat] I think is happening. >> All right.

1:53>> What would you do or change in my scenario considering my age and where would you put the money that I have amassed to where I'm financially free by the age of 25? >> You're not financially free, man. You're in a good spot, but you're not like, "Okay, I can retire now." Um so, I would just stop saying that cuz it's not true. Um it might make you feel better, but it's not true. Um that being said, first off, kudos. Second off, um I think that you're in a service business, you've done a software business, um and I would stop thinking from the perspective of what can I do with the $700,000? Because the businesses that you've started, you haven't needed the money for. And so, it's not like you're going to go like, "Okay, I'm going to start a coal mining plant." Right? Like the $700,000, in some ways it limits you.

2:33Um I'll give you an analogy and then I'll answer your question, which is a lot of times people think about business strategy like they think about what they're going to eat. So, they like open up the door of the refrigerator, they look inside and say, "Okay, I've got apples, I've got bananas, I've got some rice." And they try and think, "Okay, what do I want to eat from these things?" But the best way to figure out what you want to eat is just ask yourself, "What do Like, what do I want to eat?" And then you can go buy the food and figure it out. And so, I think it sounds like you will always chase this idea, or it sounds like you preferred the software business to the one you have.

2:59I'm guessing. And >> Because because it was easier. I could control the file like the outcome. >> I understand. Yeah. And so, I think that it makes sense for you to Like, again, all risk is personal, but you're 19 years old. You don't have a lot of downside. Even if you lost everything today, you'd just be a poor 19-year-old, which is just the same as most 19-year-olds. So, like not actually a big deal cuz you'd have big experience and skills, which you already have. And so, I'm an advocate of you uh betting big on you and not settling for this particular business because I think you have the skills to do something bigger and better. And so, if you are kind of worried, like don't worry about your current station in life going down if the income from your service business goes to zero because you have the cash.

3:36Like I'd rather you live on the cash you have so that like that $700,000 I'd rather you just live on that so you can go aggressive on the bets that you're going to make in the business that you really want to run than have your ego tied up in the fact that you're making 20, 30k a month in a service business that you don't want to keep forever. >> Mhm. That's what >> trying to keep my costs down to 2 to 3,000 dollars a month so I don't have to worry about expenses in the future.

4:01>> Good. >> But the 20 to 30,000 is kind of upsetting me because I was doing 100 to 120,000 dollars a month in profit before. So I'm not sure if I should shut down this current business and take a year off or something. >> Well, you don't need to take a year off, dude. I don't need to say I don't think it's going to take you a year to figure it out. I think if you don't have distractions, you'll figure it out pretty quickly.

4:25>> Do you think I should pivot from social media to another software business or do you think I should still stick to social media because that is my main specialty right now. >> Well, yeah. I mean, also you're you're young, which means that you could start from zero today and it doesn't really matter. So I would look at the opportunity size and then just I mean, it seems like you're sharp. You're not going to have done what you did by your age without being intelligent and hard working.

4:50Um and so I think you thinking what What do you want to have happen? >> Um I want to scale to 2 to 300,000 a month. >> Yeah, dude. I Let me just Let me just pop a balloon for you. It's going to happen really fast as soon as you get your next thing and it like let me just let me just give you a page out of my own book. One of the biggest mistakes I've made as an entrepreneur has been that I think only one step ahead sometimes. So I only add one zero to my income and then I think how do I go to that and then I go put a lot of effort into doing one more zero on my income and then once I get there, I'm like, "Shit.

5:26If I had thought two zeros ahead, I wouldn't have done this at all. I would have done something totally different." So I would prefer that you think how do I get to 2 million a month or 10 million a month and then think what businesses can I do that would get me there and then look at the market size. Look at how many customers it would take. Look what churn would look like. Look at what acquisition would look like and then can I actually do that? Like does do the laws of physics prevent me from ever doing that? If there's nothing prevents you from doing that, then that's the business that I would start. And so, the answer to your original question is, uh do I think that you should quit your existing service business to go pursue a more scalable opportunity? Given the fact that you already have $700,000 saved up, you live on $2 or $3,000 a month, and that's what you ultimately want to do long term, yes, I think it makes sense to make the bet. Obviously, that decision's yours, but I think that from a risk perspective, it makes sense.

6:09>> So, you're saying go extreme. >> Yeah. You can go extreme, dude. You don't have a wife, you don't have kids that are relying on you. Like, you can bet big on yourself. Like, the the big advantage of having an S-curve is that you can make bets. And like, the bet is if you spend $3,000 a month living, great. You just can spend time fully focused. There's There's There's such a huge opportunity cost your skill set getting wasted on a service business that's making 20, 30K a month. Again, there's nothing wrong with that. I think many people would would love that that that goal, but you've already proven that you can do more than that. And so, go do more than that.

6:39Just do not put your self-worth in your cash flow. Which will be hard. >> I can kind of resonate to the point where you said you could get to that point really quickly because I I kind of saw a very >> Of course. Right. >> spike from 20,000 to 100,000. >> Yeah. >> And I got to that point, and I was like, "Okay, what's next?" >> Right. So, look for 10 million a month. Look for a business that can do that.

7:04And then build one that way. All right? >> I have one more question. Uh >> Make it fast. >> Me Me having traditional parents that want me to go into uni, >> Yeah. >> what do you think I should do when that time position pops up? >> At some point, you're going to decide that you're going to be your own man. It's going to be before college or after college, but at some point, you're going to have to make your own decisions.

7:30>> Don't be that excited. Thank you. >> You bet, brother. If you like this video and you're a business owner who wants to break through your current revenue ceiling, I distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling road map that I've used to go from zero to one, zero to 10, and zero to 100 plus. And so you can click here and you can check it out. Again, absolutely free. And since you're business owner, appreciate you and enjoy.