From: alexhormozi
Many young adults, particularly those in their 20s, often prioritize immediate earnings over learning and skill development [00:00:00]. A survey found that 52% of high school seniors believe they will be millionaires by age 25, a belief described as “delusion” [00:00:04]. Instead of rolling the dice on a slim chance of quick wealth, it is argued that a guaranteed path to becoming a millionaire in a decade is preferable [00:00:12].
The “Earn vs. Learn” Dilemma
The choice between prioritizing earning and prioritizing learning significantly impacts one’s long-term career trajectory and net worth [00:01:28].
Case Study: The “Earn First” Approach
One individual, with basic video editing knowledge, secured a $60,000 job offer—a solid amount for someone with minimal experience [00:00:47]. However, believing he needed to “earn rather than learn,” he asked for more money [00:00:54]. He eventually took a lead video editing role at a small business lacking mentors or senior colleagues [00:01:08]. This choice, focused on short-term monetary gain, meant he quickly became the top of his “totem pole,” limiting his opportunities to learn from others and ultimately shortchanging his long-term net worth [00:01:21].
Case Study: The “Learn First” Approach
Another individual, aged 17 with no prior skills [00:01:43], sought advice from a mentor who identified his potential in sales [00:01:48]. He was advised to double the minimum activity quota; for a sales role requiring 100 calls a day, he made 200 [00:01:59]. This extra effort was to compensate for his lack of experience and achieve the same output as skilled professionals [00:02:03]. He also spent extensive time observing and learning from the top performer in the company [00:02:08]. By proving himself, he climbed the ranks to become one of the top closers, learning from experts [00:02:24]. He later took a lower-paying job at a more prestigious company, prioritizing even greater learning experiences over immediate income [00:02:39]. This demonstrates the importance of investing in oneself and starting personal growth early.
The Dunning-Kruger Effect
Early in one’s career, there’s a tendency to overestimate one’s knowledge, a phenomenon known as the Dunning-Kruger effect [00:01:31]. The more you learn in a specific skill, the more you realize the vastness of what you don’t know [00:01:37]. As Socrates famously said, “The more I know, the more I realize I know nothing” [00:04:40]. Humbling oneself to this reality is crucial for growth [00:04:33].
The Power of Compounding Skills and Effort
Consistent, focused effort, especially when starting out, leads to rapid improvement and long-term success.
Kobe Bryant’s Dedication
Kobe Bryant, even at 17, demonstrated this principle by performing two practices a day when others did one [00:03:07]. Initially, the difference was not noticeable, but after five to ten years, this compounded effort made him “unbeatable” [00:03:34]. He discovered the hunger and desire to be the best during these extra hours [00:03:22]. This exemplifies the value of focused effort and consistency.
Jay-Z’s Skill Stacking
Jay-Z’s career illustrates how skills can compound exponentially [00:06:02]. He started by mastering rapping [00:06:04], then learned promotion [00:06:14], followed by establishing a record label for distribution [00:06:17], and finally, recruiting other artists [00:06:21]. Each new skill significantly increased his earning potential, even though he didn’t heavily monetize the early skills directly [00:06:29]. Similarly, combining skills like math, bookkeeping, accounting, taxes, insurance, and M&A can transform an accountant into a “Rainmaker” with earning potential in the tens of millions annually [00:06:39]. This highlights the importance of investing in self-education and skills development.
Real-World Examples of Long-term Investment
Warren Buffett
Warren Buffett, a top graduate of Columbia Business School, chose to work for free at Ben Graham’s investment firm [00:07:03]. Graham, a titan in investing, initially told Buffett he was “overpriced” because the value of the skills and mentorship provided would far exceed any monetary compensation [00:07:18]. Buffett’s willingness to invest in himself by working for free showcased his understanding that he was in a “season of learning, not earning” [00:07:46]. This decision profoundly shaped his professional life [00:07:25].
The Speaker’s Own Story
The speaker, a Magna Cum Laude graduate from Vanderbilt, also prioritized learning [00:08:01]. He took a consulting job that paid less than his peers because it offered direct work with the CEO, maximizing his learning [00:08:09]. Later, when transitioning to fitness, he asked 40 gym owners if he could work for free [00:08:19]. Despite his impressive background, he understood that he would gain more from the experience and mentorship than his employer [00:08:32]. He accepted a minimum wage position, recognizing it as one of the best investments he ever made [00:08:42]. He advises that if you can learn from the best, accepting any price for that opportunity is worthwhile [00:08:54].
The Employer’s Perspective
From an employer’s viewpoint:
- If an individual is focused on immediate earnings, an employer will seek to extract maximum value for the compensation [00:04:50].
- However, if an individual is in a “learning season” and demonstrates a desire to grow, an employer is often willing to be generous, reinvesting in them through mentorship, skill development, and even paying them to learn [00:04:56]. Such an employee’s long-term value to the company and their own career is immense, even if they eventually move on [00:05:10]. This highlights the importance of understanding investments.
Conclusion: Embrace the Learning Season
It is critical, especially in your 20s, to understand whether you are in a season of earning or learning [00:05:28]. Comparing oneself to those earning more in the short term can be detrimental, as it often means they are sacrificing long-term growth for immediate gain [00:05:32]. Prioritizing learning means you continuously build your ability to provide value, which compounds over time [00:05:57]. True respect is earned through consistent effort and visible results, not by demanding it before putting in the work [00:04:03]. The most successful individuals in their 20s are “hungry as hell to learn and work,” not those focused on displaying superficial wealth [00:04:29]. By making the long-term trade, you build a track record of undeniable proof, earning genuine respect through experience and action [00:09:23].