Hey everyone, welcome back to another deep dive with me and...
Yeah, let's get right into it.
Okay, so today we're going to be talking all about Sky Galloway.
Yes, one of my favorite business and tech experts.
He's kind of got that like blunt honesty thing going on.
Yeah, he's not afraid to kind of like ruffle some feathers.
And tell it like it is.
Exactly. And that's what we're going to get into today.
We're looking specifically at an interview that he did.
On the diary of a CEO YouTube channel.
So we're not looking at his books.
We're not looking at articles.
We wanted to go to like the source material.
Like just him talking to another person.
And it was a really great interview.
Yeah, super interesting.
One of the things I think that stood out to me was how open he was
about his own like struggles and setbacks.
Yeah, like even as a multi-millionaire today, he's very open about
the fact that he's made mistakes, big mistakes sometimes.
Yeah, so let's dive right in.
One of the big things that he talks about is this idea of the algebra of wealth.
OK, so is it like a literal equation?
Yeah, no, not really.
I mean, he kind of uses the word algebra metaphorically to talk about this
like framework for achieving financial security.
And it's really about like these key principles that anyone can apply.
OK, so what are these principles?
So he really emphasizes like three core things.
You know, secure a stable, high paying career.
Makes sense.
You need to cultivate discipline in your spending habits.
And that's probably the hardest part for most people.
Yeah, I mean, we're all bombarded by, you know, advertisements and the temptation to spend.
Oh, yeah.
But the third part is really where the magic happens.
And that's letting the magic of compounding work its wonders over time.
OK, so this is something that we've talked about a lot on the show.
It's so important.
The idea that like time is your biggest asset when it comes to building wealth.
Yeah, exactly.
And he tells this crazy story about his friend.
We.
Who invested like a tiny amount of money early in his career.
Yeah, it was like $2,000.
And thanks to the power of compound interest that turned into millions, millions over time.
I mean, it's just it's mind blowing to think about that.
Yeah.
And it really underscores that like you don't have to be financial genius or anything.
You don't have to like time the market perfectly.
Just starting early, even with small amounts can make a huge difference.
Yeah.
So that leads us to another cornerstone of the algebra of wealth.
Yes.
Diversification.
Don't put all your eggs in one basket strategy.
Yeah.
And I'm I'm guessing this ties back to the fact that he's been really open about.
His own failures.
Like losing everything on one investment.
He definitely learned that lesson the hard way.
Yeah.
And it completely changed how he approaches investing now.
Interesting.
So he uses his visual of a bucket of sand.
OK.
And he encourages everyone to picture their portfolio.
As a bucket of sand.
Exactly.
You're gradually accumulating over time with consistent investments.
OK.
In all sorts of different assets, stocks, bonds, real estate, you name it.
So if like a few grains of sand blow away.
Yeah.
You're not left with an empty bucket.
You're not devastated.
You know, it acts as a buffer.
It protects you from those like big financial blows.
Exactly.
And it's not just about like protecting your money either.
It's also about protecting your emotions.
Yeah.
Because when you have your whole portfolio tied up in one thing.
It can be so stressful.
It's like riding a roller coaster every day.
And that takes a toll.
Yeah.
OK.
So we've got this algebra of wealth.
We've got time.
We've got compounding.
We've got diversification.
What else does he have to say for?
Well, he also has some really great advice for like younger people.
Who are just starting out.
Exactly.
Because they have even more time on their side.
Right.
To let that compounding magic work.
OK.
And one thing that he really emphasizes is geographic mobility.
Oh, that's interesting.
Yeah.
He's a big believer in like moving to where the opportunities are.
And he specifically talks about these 20 super cities.
Yeah.
These are cities all around the world where there's just a ton of economic growth.
OK.
And he thinks that younger people especially.
Should consider moving to one of these cities.
It's like if you're an average swimmer.
OK.
You're much more likely to succeed in a pool with a strong current pushing you forward.
OK.
So it's about like strategically positioning yourself in an environment.
Exactly.
Where there's just like more opportunities swirling around.
Yeah.
And he's not saying that everyone needs to move to.
New York or Silicon Valley.
But just being open to the possibility.
Right.
Of relocating to a place where there's more opportunity.
That could make a big difference.
Yeah.
I think that's a really valuable piece of advice.
OK.
So we've talked about like the algebra of wealth.
We've talked about diversification.
We've talked about moving to one of these super cities.
What else?
He also talks about this idea of asking for help.
Oh yeah. He has a really interesting take on mentorship.
OK.
So what does he say?
Because I feel like we've all heard that like.
Yeah.
You need to find a mentor.
Right.
Find a mentor.
He actually advises against directly asking someone to be your mentor.
Oh really.
Yeah.
Instead he says you should focus on building genuine relationships.
OK.
With successful people by seeking advice.
OK.
On specific issues.
Oh so instead of saying like will you be my mentor.
Right.
You're saying like I really admire your work in this specific area.
Exactly.
And I'm struggling with this specific challenge.
And I'd love to get your perspective.
Oh OK.
So it's less pressure.
It's more targeted and it allows for this more like natural connection to develop.
Yeah.
That makes a lot of sense.
He even tells the story about a young man who emailed him for advice after like a brief encounter.
And that simple act of reaching out.
Sparks of valuable relationship.
So even the busiest most successful people.
Right.
They're often willing to help if you approach them.
In the right way.
With the right attitude.
Yeah exactly.
So that's really interesting.
And you know speaking of offering something unique.
Yes.
Galway really emphasizes storytelling as a critical skill for success.
OK.
And he says this about any field not just business.
Interesting.
So why does he think storytelling is so important.
Well he believes that whether you're pitching an idea.
All right.
Leading a team trying to get a promotion.
Yeah.
The ability to tell a compelling story.
Yeah.
Is what really captivates people.
So it's not enough to just like have the knowledge.
No.
You have to be able to communicate it effectively.
Yeah exactly.
OK.
He emphasizes finding a medium where you excel.
So whether that's writing public speaking podcasting.
Even making tick talks.
Yeah.
And then practicing your storytelling every single day.
So for all of our listeners who are already natural storytellers.
Keep honing your craft.
Keep at it.
And for those who are still figuring it out.
Just pick a medium and start practicing.
And the more you do it the better you'll get.
Exactly.
OK.
So we've got storytelling.
We've got the algebra of wealth.
Let's not forget about taxes.
Oh taxes.
The dreaded T word.
But Galway says understanding tax avoidance strategies.
OK.
While staying completely ethical and legal of course.
Right.
Is really key to maximizing your financial gains.
So he's not talking about evading taxes.
No.
Not at all.
He's talking about being smart.
OK.
About minimizing your tax burden.
Within the law.
Exactly.
And he gives us example of borrowing against your stock.
OK.
Instead of selling it to avoid those capital gains taxes.
Interesting.
So it's like.
Kind of a sneaky way.
Yeah.
You're getting access to the money.
Without having to pay those taxes.
Interesting.
It's a strategy that a lot of like high net worth individuals use.
OK.
It can be really powerful.
And beyond stocks.
Yeah.
He also mentions real estate as an investment.
Right.
Acknowledging both the advantages.
Yeah.
And some of the downsides.
So real estate is not always like a slam dunk.
It depends on your individual situation.
OK.
And your goals.
And he also talks about cryptocurrency.
He does.
And other alternative investments.
But his main message stays consistent.
What's that.
Diversification and a long term approach are key.
Don't put all your eggs in one basket.
No matter what that basket is filled with.
Whether it's stocks.
Yeah.
Real estate.
Bitcoin.
You've got to diversify.
Yeah.
OK.
So we've talked about a lot of stuff.
A lot of financial stuff.
Yeah.
But you know.
Yeah.
Galloway also shares some personal reflections on like.
Work-life balance.
Yeah.
Family relationships.
All that good stuff.
Yeah.
So this is kind of the other side of the coin.
Yeah.
Because ultimately it's not just about.
Accumulating money.
It's about building a fulfilling life.
Exactly.
Money is just a tool.
Right.
It's not the end goal.
So what does he say about this whole like.
Work-life balance thing.
Well he really emphasizes the importance of finding a partner.
Who's aligned with your financial goals.
So you're both on the same page.
Exactly.
And you have a shared vision for the future.
Yeah.
And he also talks about investing.
In those meaningful relationships.
So it's not just about your financial portfolio.
No.
It's about.
Your relationship portfolio as well.
Yeah.
Exactly.
It's about nurturing those connections.
Because at the end of the day.
Yeah.
You know money.
It can't buy you happiness.
No.
But it can buy you freedom.
Yeah.
It can give you options.
Exactly.
And that can lead to a more fulfilling life.
Okay.
So before we wrap up this first part.
Okay.
Of our deep dive in the Galway's world.
Yeah.
I want to leave you with a thought-producing question.
You can find me with it.
Okay.
So throughout this whole interview.
Yeah.
He never explicitly mentions.
The impact of mindset.
Oh interesting.
On financial success.
Okay.
So here's the question I want you to think about.
Okay.
Is a positive outlook.
A prerequisite.
Okay.
For achieving wealth.
Or can financial security itself.
Yeah.
Lead to greater happiness.
Oh that's a good one.
And contentment.
It's like the chicken and the egg.
Right.
Which comes first.
Yeah.
Does happiness lead to wealth.
Or does wealth lead to happiness.
So we'll delve into that very question.
Okay.
In part two.
Sounds good.
Exploring that complex relationship.
Intriguing.
Between wealth, happiness and personal fulfillment.
Can't wait.
But for now we encourage you to reflect on your own experiences.
Yeah.
And see what insights you uncover.
Definitely.
Welcome back everybody.
So before the break we were talking about this like.
Mindset thing.
Yeah.
Does having a positive mindset lead to wealth.
Or does like.
Achieving.
Achieving wealth lead to a more positive mindset.
It's a tough one.
And Galloway doesn't really like.
Directly address it.
Address it in the interview.
All right.
But I think we can kind of like.
Read between the lines.
Yeah.
Extrapolate a little bit.
So what do you think.
Well on the one hand like.
Yeah.
Having a positive outlook.
Can be.
Super powerful.
So powerful.
It fuels motivation.
It fuels resilience.
Yeah.
That willingness to take risks.
Which you kind of need to do if you want to.
Succeed.
Especially in business.
Right.
So if you're constantly dwelling on the negative.
What's going to happen.
You're probably not going to see those opportunities.
Exactly.
Or push yourself outside your comfort zone.
You're going to be too afraid to fail.
Right.
And I think that ties into what he was saying about.
Like going all in on that one company and like losing everything.
Oh totally.
It's like.
If you're so afraid to failure you're never going to like.
Take those big swings.
Take the big swings.
But on the other hand.
Yeah.
Financial security itself can bring a lot of peace of mind.
Yeah.
You know you're less stressed about bills.
Yeah.
You're not constantly worrying about.
Exactly.
Making ends meet.
You have more freedom.
Yeah.
To make choices that align with your values.
And that can definitely lead to.
Happiness.
Greater happiness.
For sure.
And it's like almost like that.
Maslow's.
Maslow's hierarchy of needs thing.
Yes.
Exactly.
You need to have those basic needs met.
Found date.
Including financial security.
Before you can really focus on like self actualization and fulfillment.
Yeah.
It's hard to be like.
Happy of the field.
Yeah.
When you're constantly stressed about money.
100%.
And I think Galloway's own story is a really good example of that.
Yeah.
Remember that story he told about.
When his son was born.
Yeah.
And he was so overwhelmed.
With fear and shame.
Shame.
Because he had just lost everything.
In that bad investment.
He really shows how like financial instability can impact.
Your emotional well being.
Even during times that should be like pure joy.
It's a good reminder that money isn't just about like.
Stuff.
Yeah.
It's about having options and freedom.
Yeah.
To make choices that align with your values.
Yeah.
And I think that connects to his advice about.
Finding a partner.
Who's on the same page.
Who's aligned with your financial goals.
Exactly.
It's not just about splitting bills.
It's about.
Having that shared vision.
For your financial future.
Yeah.
And a common understanding of like what truly matters.
Having those shared values.
Yeah.
And speaking of like emotional intelligence.
Yes.
I think there's a connection there to what Galloway said about storytelling.
Okay.
I see what you mean.
Yeah.
Like.
Being a great storyteller.
Requires empathy.
Being able to connect with your audience.
On an emotional level.
Yeah.
And that's crucial for building those.
Strong relationships.
Yeah.
Whether it's with business partners.
Employees.
Family.
I'm not about connection.
So maybe a positive mindset.
Right.
Isn't just about like blind optimism.
Right.
Maybe it's more about cultivating self-awareness.
Understanding your strength.
Understanding your weaknesses.
And being able to.
Communicate.
Yeah.
Communicate effectively.
Your ideas and your values.
Yeah.
To others.
Okay.
So we've talked about mindset.
Yeah.
But let's circle back to some of Galloway's more practical advice.
Okay.
Let's get into the nitty gritty.
He had a lot to say about the actual mechanics of investing.
He did.
Especially this idea of starting early.
Oh.
He's a huge advocate for that.
Remember that whole bucket of sand analogy.
Oh yeah.
Like gradually filling it up over time.
He really hammered that point home.
Yeah.
Time is your biggest asset.
Time is your friend.
Yeah.
Let that compound interest work its magic.
It's so easy to underestimate.
And the power of time.
The power of time.
And he even admitted that he made that mistake himself.
Yeah.
He was talking about that bonus check.
From his early days at Morgan Stanley.
It was like $28,000 or something.
I know.
Crazy, right?
If he had just invested that.
It would be worth millions today.
Millions.
But he spent it.
Hindsight's 2020.
It is.
But it's a good lesson for all of us.
Yeah.
Start early.
Even if it's a small amount.
Just start.
And he also talked about finding ways to automate your savings.
Automate everything.
Make it like a mindless habit.
Exactly like those apps that round up your purchases.
Yeah.
And invest the difference.
That's like tricking yourself into saving.
Exactly.
You don't even have to think about it.
And for those who are ready to start investing.
Yeah.
But maybe they're feeling a little overwhelmed.
There are so many options out there.
Yeah.
He had some pretty straightforward advice.
He did.
What did you say?
He's a big fan of those low cost.
ETFs.
Exchange traded funds.
Especially the ones that track the S&P 500.
Yeah.
Like SPY.
Yeah.
It's like a simple way to.
Capture that overall market growth.
Yeah.
And then he suggested like maybe put 70% in a broad market ETF.
OK.
And then the other 30%.
You can have some fun with.
Yeah.
You can explore individual stocks or other assets.
That peak your interest.
So it's like a balanced approach.
Exactly.
You're getting that broad market exposure.
But you're also.
But you could also play around a little bit.
Yeah.
Exactly.
And he also talked about real estate.
He did.
Acknowledging both the.
The good and the bad.
Yeah.
The potential upsides and downsides.
Yeah.
He really stressed the importance of understanding the tax benefits.
Yeah.
There are some good tax advantages.
But he also cautioned against over leveraging yourself.
Especially when you're younger.
Yeah.
When you need that flexibility.
OK.
So you know it's not a one size fits all solution.
Right.
Real estate is not for everyone.
It's about making informed decisions.
Yeah.
And not just blindly following the crowd.
And you know one thing that he said that kind of caught my attention.
Oh what was that.
He was talking about becoming a super tax avoider.
Oh yeah I remember that.
And I was like what does that even mean.
It sounds a little shady.
It does sound a little shady.
Yeah.
It was very clear about doing it.
Legally.
Legally and ethically.
He's not talking about cheating the system.
No he's talking about understanding the rules.
Yeah.
Playing games strategically.
Like that example he gave about borrowing against your stock.
Right.
Instead of selling it.
To avoid those capital gains taxes.
It's a perfectly legal strategy.
It is.
And it can be super effective.
It can save you a lot of money.
So it's about being proactive and savvy with your finances.
Exactly.
Not about like hiding income.
Or doing anything illegal.
Right.
And he also mentioned something called.
QSB.
Yeah.
Qualified small business status.
Yeah.
Which offers some really great tax breaks.
Yeah.
For entrepreneurs.
So it's not all bad news.
No.
The tax code actually has some provisions.
That are designed to help you.
Yeah.
That encourage.
Entrepreneurship and small business growth.
So it's like a hidden treasure.
You just gotta know where to look.
Yeah.
I know where to look.
And as your financial situation gets more complex.
Yeah.
Galloway really stresses the importance of seeking out expert tax advice.
Yeah.
Because it can get really complicated.
It can.
And it's worth it to.
Have someone on your team.
Yeah.
Have like a financial sherpa.
I love that a financial.
Shower.
Guide you through those treacherous mountains.
Those treacherous mountains of taxes.
Exactly.
Okay.
So beyond taxes.
Yeah.
Galloway also offered some really good advice about decision making.
Which is crucial.
Yeah.
In all aspects of life.
Not just finances.
Right.
And he emphasized the importance of slowing down.
Especially for those big life altering decisions.
Those big life.
The ones that you can't just like undo.
Exactly.
And he talked about seeking input from trusted advisors.
He called this slow thinking.
Slow thinking versus like fast thinking.
Yeah.
For those everyday decisions.
Yeah.
Where you need to react quickly.
Exactly.
But for those big ones he's like.
Take your time.
Assemble a kitchen cabinet.
A kitchen cabinet of trusted advisors.
Balance ideas off of them.
Get different perspectives.
Yeah.
And he really believes in surrounding yourself with people who.
Challenge your assumption.
And help you see the bigger picture.
Yeah.
Because it's easy to get caught up.
In your own little bubble.
And think that you have all the answers.
And you don't.
You don't nobody does.
And he also talked a lot about the importance of relationships.
Yeah.
Both personal and professional.
Yeah.
He stressed generosity forgiveness.
Recognizing that everyone has their own.
Strengths and weaknesses.
Exactly.
And he talked about how important it is to bring empathy and understanding.
To any relationship.
Especially marriage.
Acknowledging that no relationship is perfectly balanced all the time.
It's about being willing to compromise.
Support each other.
And work together as a team.
Exactly.
A team approach is always more effective than going it alone.
Yeah.
And he also made this really interesting point about the role of relationships.
In building wealth.
Yeah.
He said that wealthy individuals often cultivate.
Strong network.
And they invest in those meaningful connections.
Well, professionally and personally.
Yeah.
It's like that saying your network is your net worth.
Exactly.
But it's not just about like transactional relationships.
No.
It's about cultivating those genuine connections.
Based on mutual respect and support.
Exactly.
And then finally.
Yeah.
He had this really interesting piece of advice for young people.
What was that?
Be risk aggressive.
Oh.
When you're young.
Yeah.
When you have less to lose.
He's all about taking those big swings early on.
Yeah.
Because you have time to recover.
Exactly.
You have time to bounce back.
And you have more flexibility.
He's not as tied down.
He actually used this phrase.
What was it?
He said you should workshop your career.
I love that.
Try different things.
Experiment.
Don't be afraid to make mistakes.
Because that's how you learn.
And he even joked that like when you're younger.
You're more likely to find a couch to crash on.
If things don't go as planned.
Right.
You don't have like.
Org of mortgage.
Org of your kids to worry about.
Exactly.
And he also stressed the importance of being geographically mobile.
Especially early in your career.
Yeah.
He was like if you.
Move to one of those super cities.
Move to a super city.
Do it.
Where the opportunities are.
Yeah.
Because it gets you.
Increase your chances of success.
Okay.
So.
I know we've covered a lot of ground here.
We have.
But if you had to pick like one key takeaway.
One key takeaway.
For our listeners.
What would it be?
I think it would be this.
Okay.
Worth building.
Yeah.
Is a holistic endeavor.
It's not just about the numbers.
It's not just about the money.
It's about.
It's about mindset.
It's about relationships.
Yeah.
And it's about embracing the journey.
It's about the whole package.
Exactly.
Okay.
Well on that note.
Let's move on to the final part.
The final part of our deep dive.
Into the world of Scott Galloway.
Okay.
So as we wrap up this deep dive into Scott Galloway.
Yeah.
One thing that really sticks out to me.
Okay.
Is his emphasis on storytelling.
Oh he's like obsessed with storytelling.
He really thinks it's like a secret weapon.
For success in any field.
And.
Honestly I'm starting to see why.
Yeah.
I mean think about it.
Okay.
Like persuading investors.
Yeah.
Motivating a team.
Even like negotiating a raise.
Yeah.
All of those situations they all hinge on your ability.
To tell a good story.
Compelling story.
Yeah.
To like capture people's attention.
And make them to buy into your vision.
It's like he said mastering the art of storytelling.
Can help you punch above your weight class.
In any aspect of life.
I like that.
Yeah.
So for anyone listening who wants to like improve their
storytelling skills.
He has some great advice.
Okay.
He says.
Okay.
Choose a medium that feels natural to you.
Okay.
Whether that's writing or speaking.
Creating videos or even just like.
Sharing stories around the dinner table.
Hee hee.
And just commit to practicing every day.
Make it a habit.
Yeah.
So if you're already active on social media.
Think about how you can use this platform.
To share your story.
To connect with people.
To build a following.
Exactly.
You don't need a fancy degree.
Yeah.
Or a TED Talk invitation.
The tools are already there.
It's all about putting in the effort.
Yeah.
And consistency.
Consistency is key.
And he also talked about the importance of like finding
your niche.
Becoming an expert.
Yeah.
Like becoming that go-to person.
In a specific area.
Yeah.
Whether it's like.
Ancient Roman history.
Cryptocurrency.
Sourdough bread.
Whatever you're passionate about.
You need to come in authority.
Own that space.
Exactly.
And I love how he connected this back to.
The emotional element.
The emotional element of storytelling.
It's not just about.
Exciting facts and figures.
No.
It's about making people feel something.
Yeah.
Sparking their curiosity and making your message memorable.
It's about leaving an impression.
Exactly.
Speaking for lasting impressions.
Yeah.
I keep thinking about that bucket of sand analogy.
Yeah.
It's just such a good visual.
For understanding compound interest.
It really encapsulates Galway's message about investing.
Start early.
Stay consistent.
Let your wealth grow organically.
Over time.
But he also stressed that it's not just about.
Mindlessly.
Throwing money at the market.
Yeah.
You need a plan.
A strategy.
You need a roadmap for your financial journey.
And that's where his algebra of wealth comes in.
Right.
Find a career with high earning potential.
Develop disciplined spending habits.
Embrace that stoic mindset.
Diversify your investments.
Those are all key elements.
His framework.
And he even suggested like.
What was it.
Turning saving into a game.
Oh yeah.
Like challenging your friends.
To see who can spend the least amount of money.
It's a fun way to build those healthy habits.
Yeah.
Especially early on.
Yeah.
When you're younger.
Make it a competition.
Exactly.
You know as we've been going through all of this.
Yeah.
I've been thinking about how Galway's advice.
It's not just about finance.
It's about life.
Yeah.
He seems to have this knack.
For distilling these complex ideas.
Into these really simple.
Actual steps.
Whether it's about investing or relationships.
Or just like.
Navigating life.
Yeah.
Navigating the ups and downs of life.
And he's so relatable.
He is.
He doesn't shy away from sharing his own like.
Vulnerabilities.
Vulnerabilities and mistakes.
Yeah.
He's not afraid to admit that he's messed up.
Which makes his advice even more credible.
Yeah.
Because he's been there.
He's not just like.
Preaching from a pedestal.
Yeah.
He's down in the trenches with us.
Figuring things out as he goes along.
And I love that he's got a sense of humor about it.
Oh yeah.
He's funny.
Yeah.
He doesn't take himself too seriously.
Remember that story about the Premier League.
Oh yeah.
He became like a die hard soccer fan.
Just because his sons are obsessed with it.
And he's like I don't even like sports.
But he loves his sons.
It's so funny.
It's a good reminder.
It's a reminder that like sometimes you just got to.
Step outside your comfort zone.
And embrace the things.
That matter to the people you love.
Yeah.
Exactly.
It's about prioritizing relationships.
Yeah.
And I think that ties back to his whole message about.
Wealth being a whole person project.
It's not just about the money.
It's about investing in your relationships.
Your well-being.
Living a life that's aligned with your values.
Goodness said it better myself.
So as we wrap up this deep dive into the world of Scott Galloway.
Okay.
I want to leave our listeners with his final thought.
Okay.
Remember.
Wealth is a tool.
It's a means to an end.
Yeah.
It can be a powerful tool.
For creating a life you love.
But it's not the only tool.
And it's certainly not the end goal.
Invest in yourself.
Invest in your relationships.
Invest in your dreams.
And as Galloway said, squeeze all the juice out of this lemon called life.
Well said.
That's a wrap everyone.
Thanks for joining us.
We hope you enjoyed this deep dive.
And we'll catch you on the next one.