Shahar Abrams - Money Talkers Transcript
7:50PM Oct 14, 2021
Welcome back to money talkers. This is your host Cody Loughlin, I just had an awesome conversation with Shahar Abrams, we kind of scratched the surface on crypto, we went a little bit deeper, and then we went to some actionable pieces of the things that you can do right now. He is coming from a very different position than a lot of people you see out there advertising things. And so make sure you check that episode out because it's fascinating. But this is the high impact series. This is where we're going to ask him the one question and in this one question we want to have you be able to take a takeaway, we want you to be able take your headphones off, take your earbuds out, think about this and then go have a conversation with your kids go have a money talk and what this is going to do is going to do two things. One, you're going to help educate your children the things that they're not getting educated on now and they have such a long runway that the ramifications of them picking up these conversations is tremendous on the other side the second thing it does is it's going to build a relationship in your household so that your household is a money talker household so that they're not you know later in life going man I messed up a bunch because we never talked about money in my house. Right? We never talked about entrepreneurship we never talked about successful mindsets, that stuff is going to be missing because your house is going to be a modern talker household and so with that, Johanna Are you ready? Ready? All right, man. So here's the big question right? What is the one thing that you would teach about that our schools don't that had a major impact on your life?
Yeah it's a great question. It's something I've definitely thought about a lot and obviously there are tons of things I think if I had to pick one thing it would really be on the principles of wealth generation which I think boils down to you know, passive income generation right? So never during school and it's this concept right that schools teach you how to work how to be a worker right how to work for money and they don't ever teach you how to make money work for you. And you know what every wealthy person that I've ever met that's their secret that's what they do where they they they make money their money work for them that's what wealth is right earning money independent of time so that you can spend your time doing what you want to do right and rather than having to sell it all the time so you know what that you know that what really opened my eyes and kind of started me on my whole personal finance and investing journey even before I found crypto was reading this book that I'm sure a lot of people have heard of Rich Dad Poor Dad, right. And the central concept of this book is just like look like an asset is something that puts money into your pocket. You want to have assets that put money into your pocket so that you can build your passive income generation right the more passive income you're generating, again, that's what wealth is right? So that just you know struck a chord For me it was like a eureka moment and ever since then, I was looking for all right, what assets can I get that will contribute to you know my passive income and you know, in that book, Robert Kiyosaki actually talks a lot about real estate that's like his thing real estate was never really for me and I didn't like the idea of you know having to go into so much debt to get started you know, buying a place and it wasn't really my cup of tea and you know, luckily I found crypto and you know shortly after you know, the first passive income generating you know, applications in crypto really came out at the end of 2018 and I was lucky to kind of find some of the first ones literally just you know, by running into people at conferences but you know, I immediately kind of latched on to that and and you know, that's been a big part of my journey, you know, finding these applications where you can use crypto to generate really strong passive income, which you know, I know you know, we talked about at length on that episode, we just did Cody, so hopefully people check that out. But it I think the truth is, like, it has never been more accessible and more possible to you know, today than it ever has been right? with stuff like crypto that we talked about, right? You can get started with any amount you get any amount of money that you have is enough to start generating passive income. And, you know, that's the one thing it took me several years, you know, to get into that mindset, and that was a lot of kind of miss time. You know, I probably don't have to tell you know, what, what would have happened if I had, you know, gotten into crypto just a few years earlier, right. So, you know, I definitely wish I had learned that during high school, I honestly I went to business school. In college, I studied finance in college. I still never learned any of this stuff. Okay.
Later I was a finance major and became a mortgage broker. And I didn't know what it was. I didn't know what a mortgage or something to buy a house, I don't know what it is like, you know, and but, uh, I want to I want to interject there real quick because you just really dropped an education on us in that episode. And the headline news, the let's call it the newspaper right for lack of a better example right? But like the headline or is buy a coin? Hope it goes up in value, no idea why. And then hopefully you sell it and see what happens but you could lose everything right? Like that's literally like I would guess if if I were to pull people put questions out that's probably the impression of 90% of the population, if not more, I would even take the over on that.
Yeah, probably over it. Yeah. And find the best meme and Yeah,
well, that's what you talked about, like, you know, it's like a scratch off, right? Like, just throw money in there. And maybe you're the one of the winners, right? Like it doesn't, there's really no correlation. But what we just went through, were, what was way more exciting to me was the functionality of investing into it. And you mentioned, you know, Rich Dad, Poor Dad is my favorite book as well. It's so many of the high level people I've interviewed, that book comes up constantly because it's a mindset shift. But I'm not in the I'm not in the business of holding assets to hope that they appreciate right, that scares me. I like businesses like Warren Buffett said, because they make money. The way in the thing that you brought to the table in our interview in the crypto world were wait these are these are asset producing options to do it in the crypto world not holding a scratch off hoping that goes from 50 to 20 grand or whatever the deal is, you actually have a way that we kind of went through which was this is how you get involved in the functionality of the people who are doing those other the other transactions and to be able to pull income off of those and some substantial returns with it. And I love that that is way more in my wheelhouse than holding an asset and hoping it goes up.
Yeah, absolutely. You know, it's good. And it took me it took me a few more years to realize after you know, the big moment of reading Rich Dad Poor Dad, it took me a few more years to realize that in fact, you know, assets are always putting money into someone's pocket. Yeah, it's just not always your pocket. Okay, when you hold money in the bank, right? They're making loads of money off of your money right by loaning it what is the bank charge on a credit card? Right 25% like That's an incredible return okay, but they only pay you point one it's your money that they're loaning out with on the credit card right? They get that money from you from us, but they only pay you point one because that's just the way that the banking system has worked. That's the traditional model okay? And it's it's getting disrupted Okay, it's going to be massively disrupted. Okay, how many people like their bank right? How many people and not only that you have to like go to the bank right? That's ridiculous. Okay, I've never I'd never go to the bank I earn all this I do all this from my phone. Okay, because it's a crypto application. Alright on the Internet of value. So that's the big thing with crypto why I'm so excited about it and I think this has resonated with you too is that because we have the ability to actually own the assets ourselves in our wallet that allows us to demand actual you know us getting the money right using the assets to put money in our pocket right when you have stock so here's another example right when you have stocks on Robin Hood when you have stocks on fidelity or ETrade guess what they're rehypothecation those as well they're loaning them out to to funds hedge funds short sellers usually funds that are you know selling them short taking the opposite position as you write the one that's invested in it and they're earning lots of money on that okay that's how that's how they make all of their money that's how you know that you know your Robin Hood doesn't charge any fees right how they make their money they payment for order flow and lending out you know, your assets to to hedge funds and
I want to say something about that because I just recently learned that because I knew that they did payment for order flow My idea was okay, I'm buying the stock for $5 they see the order flow they're gonna buy it first and then if it goes like they see the momentum but what I recently found out was they see you buy for five they take the opposite position as the retail investor like and the majority of the trades you know on the on the short selling side of that they're not trying to catch the momentum they're actually betting against you.
Yeah, it's it's not so yeah. And the end the problem is you know, this stuff kind of is going to happen but at least in crypto it's all completely you know, transparent because all of this stuff is happening on a public ledger that nobody can control right i think
it's gonna be it's gonna be also be highly interesting to watch how the traditional finance sector fights back or jumps on board because you know, it's not gonna they're not going to go away. You know, the bankers aren't going to be like, Okay, you guys want you know, like they're gonna there's gonna be Some sort of, you know, regulation and stuff like, yeah, so but I think that'll be an interesting thing over the next developer the next five to 10 years. But, um, listen, I love that idea. I love that idea of having money work for you, that is 100%. The trick to wealth is that when your assets start buying assets, and those assets are continually in the compound effect is a lot more than owning an asset that pays you a certain percentage, it just multiplies. And that's where the wealthy make them. And that's the, that's the true secret to what their wealth has been, is that the money starts buying money. And that money is buying more money, and it's just multiplying on the on the compound effect. And so I love that concept. I love that. I love that idea. I appreciate you bring a table. And so with that parents, I would actually challenge you to shard so I don't know how many times you've read Rich Dad, Poor Dad, but I've read it four times in my life. And every time I read it at 20, I read it at 28. I read it at 35 and at 40. And every time I read the book, I saw it differently. I also took something different out of it because the book never changed. But my perspective on the world did. And so I took something different every time I've taken like things out of it every single time differently. So I give you the option to try that out man because it's actually kind of funny in the way that you'll see the way you looked at things before now I opened it was and now you've got the you know the background to apply to it as well really, it looks different. The words will seem different than what they are written, although they haven't changed. So but I would also say this parents, if you haven't got that concept, please make sure that you talk to your kids about these things. If you want to learn some very interesting things, and maybe even take an experiment with your kids to learn about this a couple $100 you know, and go and sit down and start to you know, go with some of the concepts that we got into other than that Shahar I know you have an educational piece coming out you have a course coming out to really kind of deep dive into this stuff. But who should come find you and where they find you?
Yeah, so you know if you're if you're curious about crypto, you know you you've heard about it, but maybe you're cautious which you should be and you're not sure perhaps how to get started or you want you know, to find a good guide to put you on the right track help make sure you don't make you know, any bad mistake, you know, as you get on started on your journey, then definitely come find me find me at Rhoda babylon.org there's tons of free resources on there. I actually do a newsletter every week, and they're all archived. So I have a bunch, you know, a massive archive of of my writings on the space talking about everything from markets to what's going on, you know, new trends, interesting things to watch. Countries making Bitcoin legal and all this other crazy stuff that's been happening, I write about all of it. It's all free. I also have a course coming up in the next month, which will be the crypto investors toolkit course, perfect course for you, if you really want to get started on this stuff. take it seriously. And not just like Cody said, you know, buy a scratch off and hope that's a really stressful way to do it. Which I don't recommend that it's not worth the stress. Really even if you do make it in my opinion, is a kilometer ago. Exactly, exactly. So check that out. You can sign up to get notified when the course goes live and get some other content. So I'll see you there.
Awesome. Please check out wrote a babylon.org. If you're interested in learning more this also our interview was fantastic. So thanks again for Shahar for coming on to the money talkers. If you're listening right now now's the time to take those headphones off, take those earbuds out and make sure that you have these conversations in your household. It has massive ramifications for our young people. And it also helps build the most important relationship on the planet that's between you and your kids. And so with that, thanks a lot Shahar. Appreciate it.
Absolutely. Thank you.
Thank you for listening to another episode of money talkers with me, your host Cody Laughlin. If you found this episode helpful in your pursuit of financial dominance, it really helps if you make sure to leave a five star rating and share it with your friends or family members who could use good financial information and entrepreneurial success tips. I invite you to join the money talkers community Facebook group, open Facebook and search for money talkers to join today. Follow us on Instagram at the money talkers for inspirational mindset posts, encouragement and investing tips. And remember, the one thing you can do to change your kid's financial future is to start talking about money with them because you are a money talker.