How to Change Your Life | Ep 939

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast, you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth. Wanna scale your business? ⁠⁠Click here.⁠⁠ Follow Alex Hormozi’s Socials: ⁠⁠LinkedIn ⁠⁠ | ⁠⁠Instagram⁠⁠ | ⁠⁠Facebook⁠⁠ | ⁠⁠YouTube ⁠⁠ | ⁠⁠Twitter⁠⁠ | ⁠⁠Acquisition ⁠

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Alex Hormozi?

  You're not getting what you want out of your business or your life because you want too many things at the same time. You're not willing to make trade-offs. And I will prove it to you. And so, in this video, I'll break down the core problem and the way to frame the trades that you make at different seasons in your life. Everything in life has trade-offs. And people just need to determine the price versus the value. Like anything.

• 0:30Alex Hormozi?

  There's going to be both of these things. And so, when people say, "I can't believe he did this," it's because they're only looking at the cost and not the payout. Now, if you say, "Hey, that guy made this trade. I wouldn't have made that trade." Awesome. And that's why you don't have to make that trade. Right? And so, let me give you kind of like a frame of mind for this. I was thinking about this because we were, Leila and I were looking at home stuff lately. And we were thinking about, you know, buying homes and all that kind of jazz. And one of the things that was such a striking example is that you cannot have it all. There are many examples in life where it is, this is not a, I'm sure you've seen it, like, "You can have it all." You can't. Let me give you the example. If I say, "I want to have a house that's in a ski town,

• 1:15Alex Hormozi?

  but I also want it to be near the beach, and I also want it to be secluded, but I also want to have a town and shopping and walking distance, and I also want it to be cozy and not too busy, but I also want it to have lots of space for activities and a yard." I can't have all those things. They are literally structurally impossible for them to all be in the same thing. One, the beach and the snow mountain, probably not going to exist in the same house. If I want to have something cozy versus lots of land and space, probably not going to happen. If I want something to be in walking distance, but also have a great aerial view, might not happen. Right? And so, each of these things, that one could happen in a high-rise downtown. Okay, that one, maybe. All right. But, but there's going to be some of these that you have to make trades.

• 1:58Alex Hormozi?

  And I think, basically, like, confronting that is like the core element of what you have to do in life to move forward. And so, many people stay in decision limbo. They stay in purgatory. And purgatory translated into reality is that they don't achieve what they want. They don't get what they want out of life because they never make a trade to begin with. Right? And so,

• 2:21Alex Hormozi?

  I'll give you a couple more common ones. Like, should I get married versus should I not get married? This not should I, it's just, am I willing to make the trade? Right? Should I have kids versus not having kids? Should I sacrifice my twenties versus sacrificing your thirties? There are always trade offs. Like, if you sacrifice your twenties, you will miss out on some of the kind of youthful, fun experiences that some people have. Like, that's a trade, that's real. You will give up on some of that stuff. The question is, what are you trading it for? Now, the worst trades of all are the trades that we don't consciously make, but still trade anyways. Right? Like, you didn't get the fun experience of your twenties, but you also didn't build the nesting, you didn't build the reps, you didn't build the experience

• 3:04Alex Hormozi?

  so that you could set yourself up in your thirties. Right? And so, a lot of, like, your thirties is a, is a reflection of how you lived your twenties, just kind of taken forward. Now, some people I meet, love their twenties. They backpacked across Europe, they had all these different experiences, they got culturally enriched, and I love that for them. That wasn't the trade that I wanted to make. And so, it would be ridiculous for me to say like, I, I want that, and I want to develop this very deep well of skillset that I can use for the rest of my life. Now, those people for sure build skills. Are those skills as marketable? Maybe, maybe not. I don't know. Some people are like, well, I could travel and learn. Maybe. I don't know. I mean, I haven't, like, Zuck didn't do that,

• 3:48Alex Hormozi?

  Bill Gates didn't do that, Elon didn't do that. So, again, it's, there's also to what degree? Right? How big do you want to go? And so, I think like, you can't expect a 1% outcome without having a 1% trade off. Right? And I'll give you a different kind of, like, I give you a house example. Let me go really, really small. You walk into a store, there's a pair of shoes you like. Okay? A pair of shoes you like. You look at the price tag, it says $500. At that point, you make the decision, is it worth the trade? That's all it is, right? And then, if you see somebody else make the trade, this is how dumb the internet is. They will then say like, "That guy's an idiot, that guy's a moron." But the thing is, is that if that guy's a billionaire, who cares what he traded? Like, for him, it made sense.

• 4:32Alex Hormozi?

  And if you're on food stamps and minimum wage, $500 shoes probably doesn't make sense for you. Probably not worth the trade. And so, is the trade inherently good or bad? No, it's dependent on the person and their context. Alright, all of these are examples of trade-offs, right? And so, the question is, what are the trades and are they worth it? The reason people struggle so much with making trades is because they know what they stand to lose, but not what they stand to gain. So, the cost is guaranteed and fixed, but the upside is not. Which is why it's so hard for so many people to make bets, especially on themselves. And so, if you had a single belief that I could transfer to you is that you will figure it out if shit hits the fan.

• 5:17Alex Hormozi?

  And when shit hits the fan, if it does and it will, the reality is, it's not gonna be as bad as you think it is. And so, you have this fixed cost that you believe that will happen, but isn't actually real because it's a fear inside of your mind. You think, "If this bet doesn't work, I will go homeless, lose all my friends, and die." But that's not reality. The worst-case scenario for most people who are social, as in like, just are functioning members of society, is that you crash on someone's couch for a while. That's the actual worst-case scenario. And I only say this because, um, if you look at homelessness, right? The vast majority of homelessness, not all, the vast majority of homelessness, um, is due to addiction and mental health issues.

• 6:01Alex Hormozi?

  So, my point is, most people have this fear. Now, even the people who are, I'll say, I'll be politically, the unhoused, right? The unhoused, even the unhoused. Uh, it's hard to say, it's so funny. Anyways, uh, even those folks still have food, still keep living, still have access to medical attention. Okay, at least in the US, in the VAB world, okay? And so, I say this because the worst-case scenario is that you have no boss, you have food, right? You have medical attention if you need it, and you walk on the streets doing whatever the hell you want. That's the worst-case scenario. Some people might say that's better than their current scenario. And so, when I, when I think about this, I, I think, I think about this in an inordinate manner, I'll say that to be honest with you, which is that like,

• 6:44Alex Hormozi?

  your level of subjective well-being doesn't change a dramatic amount throughout your life. A lot of it is inherent, right? Like your, your demeanor, your disposition. And I'll give you a, a simple example that makes people uncomfortable. So, think about how, how were dogs created, right? So, there were wolves, right? And then there were some wolves that were a little nicer than the other wolves. And they were like, "Let's breed the nice wolves." And then nicer wolves breeding nicer wolves, breeding nicer wolves, eventually you get a labradoodle. Okay? Taking enough times. And so, people don't like to think about humans in that same way. But like fundamentally, if you've got assholes breeding assholes, they tend to make more assholes. And if you've got nice guys and nice gals, they tend to make more nice people.

• 7:26Alex Hormozi?

  Of course, there's genetic variety that happens there, but over time, that does happen. And so, that also happens with happy people and unhappy people, believe it or not. And so, a lot of that, like, of course, you operate within your genetic potential. Of cour-, like, you can move things. Like, you can have genetics for muscle and never work out, and you're not gonna have the same level of muscle. Right? Period. And so, you might have genetics for more happiness, or genetics for less happiness. Sure. And you wanna maximize those things. But I only bring this up to say, we have this idea that we're going to, like, "I'll do this thing, and then I will be happy. I will do this thing, and then all my problems will be solved." But our brains are only meant and evolved to keep us alive. And most of that is about finding problems and potential threats within our environment,

• 8:11Alex Hormozi?

  which tend to keep us stressed out and unhappy. And that core unhappiness, that core anxiety, tends to move humans forward. Because we continue to innovate, we continue to try to solve problems, because we all think that when we solve that problem, we're going to be happier. And we're not, but we do move civilization forward. And so, I bring all of this up to say that the downside of your bets are not as bad as you think they are. And the upside of you making it all work is also not as good as you think it is. And so, it's really, what do we wanna do with our time?

• 8:42Alex Hormozi?

  And so, the people who are rewarded most in life are the ones who are willing to simply embrace uncertainty. And just embracing the idea that you do not know what will happen. And so, big picture, zooming back out, if we were to quantify the trades that we're willing to make, right? In terms of, "I know I'm going to lose these years, but I will probably look back on this time and not be upset by it because of what I got in return." And a lot of this comes down to the framing of life happening for you, not to you. And I think that you can live a life without regret as long as you always believe that you had to go through that to get to where you are now.

• 9:28Alex Hormozi?

  Period. So as much as you say like, and I believe, I can go back and say, "If I had known this at this time, my God, I'd be so much further." But, how could I have known that at that time? I had to go through this to know this.

• 9:44Alex Hormozi?

  Right? And played out the other way, let's say that I did know it at that time, and then I was better off now. Now what? I'm just better off, and I'm still going to be probably about as dissatisfied and satisfied as I am right now. And so, some of you guys are sitting on the edge in decision purgatory. You're trading the time you have, you're trading the years of life, but you're not getting anything for it. And so, the only thing that I would encourage you to do is be, number one, conscious of what you're trading, and number two, conscious of what you're trading it for. And as much as the people around you will decry, or speak down, or speak against you

• 10:26Alex Hormozi?

  for making trades, the question is, do you want their life? Because I have yet to receive criticism from somebody who is ahead of me. On, in any domain. I have not had people who are bigger than me say that I sucked at fitness and that I shouldn't work out. I haven't had people who are richer than me say that I shouldn't work as hard as I do. I haven't had people who were married longer than me tell me that I'm doing something wrong with my marriage.

• 10:53Alex Hormozi?

  The only people who have shit to say are the people who have time to say it because they're on the sidelines doing shit.

• 11:02Alex Hormozi?

  As in jack shit.

• 11:05Alex Hormozi?

  And so, I only say this because like, I really struggled for a long time to get over what other people thought. It was very hard for me. Um, and then I think like, at some level, like at some point, you just have to prove to yourself that you will survive. That you will not die. And I'll tell you a very weird version of this story, but I think it could wrap us up. Which is this. So, believe it or not, um, when I was in, up until eighth grade, I was a germaphobe. And, uh, that seemed probably maybe weird for you to see now, I mean, mind you, it was a long time ago. Eighth grade was a while ago for me. Um, but before that point, I like, like, I would hold my breath if someone was walking in front of me because I didn't want to breathe in their germs.

• 11:48Alex Hormozi?

  If someone hit a doorknob that I saw, I would like, you know, use my arm and work my way around and do all sorts of crazy, you know, canoodling. Um, I'd do all sorts of craziness. You're like, where is this going? I promise there's a point. And it was, it got to the point where it started to become a little bit debilitating. It started to get in the way of like how I live my life. And so, we had to go on this trip back in the day called Expedition Eight. So you did it in eighth grade, it was like you went camping, it was like a field trip. And so we had to go five days, uh, in the middle of the woods with like our grade. And so we went out camping, um, and I committed that it was going to be impossible for me to like be a germaphobe in the forest. I was like, this is like, this is not going to work, I might not be able to eat, right?

• 12:29Alex Hormozi?

  And so I basically was like, I'm just going to not wash my hands and I'm just going to eat everything that's there and just, just not worry about any cleanliness. And if I die, I die. And, so the craziest thing happened. I did the five days, I had dirt on my hands while I was eating the food. I didn't wash my hands once. And then at the end of the trip, I was still alive. And then I waited another week to see if all of the maladies that were probably inside of me were going to come to fruition. And none of them did. And then at that point, I was like, so all of the energy that I had been putting into all of this concern around germs amounted to nothing.

• 13:15Alex Hormozi?

  That was a hu- it was actually a very big moment for me. And I, I have maintained that viewpoint. Um, you know, for the rest of my life, like, just don't sweat about that stuff. And so, other people's opinions are a lot like those germs. You think the whole time, like, you know, what if they, like, you're holding your breath? What if they say this? What if this happens? It's like, well, what if? And let's play it out. And then you realize that not only did you not die, no one cared to begin with. And no one's even thinking about you. And so like, and as somebody who has had a fair amount of like, different people try to take shots at me. Nothing's changed in my life. Nothing. People make hit videos, people take stuff out of, that I said out of context. Um, that's okay. It's the internet.

• 13:59Alex Hormozi?

  If I expect to be completely understood, that is a, that is a, that is a silly goal to have. And I'll give you another story that really drove this home for me. So I was on TikTok, I think, this is, this is a, a while ago. And I saw this really old white dude, just normal, generic white dude. Just giving like, financial advice, talk about the economy or whatever. And he was getting roasted in the comments, like, you know, grifter, like, old man go home, like, all sorts of craziness. Just telling like, he was a, you know, fake guru, whatever. The guy was Ray Dalio.

• 14:31Alex Hormozi?

  He's worth thirty billion dollars. And he's like seventy-nine, and he's just trying to like, help people. He's like, on TikTok, trying to like, help the younger generation. And when I saw that, I realized that you cannot save, like, you will never be legitimate to the ignorant.

• 14:51Alex Hormozi?

  And to, and, and that,

• 14:55Alex Hormozi?

  to be hated by a bad person is a good thing. Think about that. Many of us of, want to avoid being hated in general. And I understand why. It makes sense. No one wants to get hated when they're, when you're growing up, etc. But think about the worst person in the world, right? Wouldn't you want them to hate you?

• 15:16Alex Hormozi?

  Right?

• 15:19Alex Hormozi?

  Like, we should judge, we should judge our character by the quality of our enemies.

• 15:25Alex Hormozi?

  And so, if somebody who's completely ignorant, who has no context, wants to speak ill of you or your goals or way of life,

• 15:35Alex Hormozi?

  take it as a compliment. Or at the very least, just feel bad for the fact that they don't know any better. But in no way should we put weight on what they say in the, the scales of how you decide how to live.

• 15:49Alex Hormozi?

  And so, anyways, I just say this because like, I had, I've had too many voices that were too loud for too long in my life that prevented me from doing the things that I wanted to do. And so, I share that little story about Expedition Eight and the dirt under the fingernails, if you will.

• 16:04Alex Hormozi?

  That, those germs, you think that they're going to kill you, and then nothing happens. They're just germs. The biggest gains come from the unknown.

• 16:15Alex Hormozi?

  So that unknown upside. And so, functionally, like, you can only go to zero, right? And if we really play it out, the likelihood of you going to zero as a regular person is on, almost zero, right? But, Bezos said this best, which is, uh, humans underestimate the upside and overestimate the downside is one of the fundamental psychological biases that humans suffer from. And it's because there's no real benefit for humans besides avoiding death. And so, it makes sense that we'd have cognitive biases that disproportionately represent downside. Because if you didn't do that, your genes would not have proliferated and come down generations, right? The guy who thought, hey, maybe there's some upside if I eat the, the berries, it's like,

• 17:00Alex Hormozi?

  well, then they die, right? And that's, that's the end of that guy, right? And the end of his life. And so, all the optimists are dead. Right? All those genes ended. And so, all that's left is the pessimists that continued to believe that the worst was happening and the world and the sky was falling. But it's like, the world has changed, our genetics haven't. And so, it's like, we have to make these conscious decisions to realizing that all of the upside is in the uncertainty. And the fact that you weren't certain, so is everyone else, but that is where the arbitrage lies. The arbitrage lies in the uncertain and the delayed. I'm gonna say this again. All the upside that you want in your life is on the other side of uncertainty and delay. Everything. And it's because there's the two things that people are unwilling to bear the price of.

• 17:45Alex Hormozi?

  They will not pay that price. Because it feels like too much because they don't know how much they have to pay and they don't know how long they have to pay it for. But I'm telling you that it is faster than you think it is. And it is not as scary, but you have to take the first step. And this again, it scales all the way up. Right? Like, we're taking some huge bets at acquisition.com and there's a lot of stuff that I don't know how we're gonna do it yet. But I believe that we have the ability to figure it out. Because if somebody else can figure it out, so can you. It's not like they're made of different tissue than you. It's not like they spend different money than you do. Every, like, these things are solvable. And at the very least, there's somebody who knows how to solve it and you can figure out how to do something for that person so they can help you.

• 18:27Alex Hormozi?

  Whether that's money, whether it's a favor, whether that's relational capital, whatever you have to do. And so, like, if I want to transfer this to the greatest degree possible because I had so much fear, I was like, what if I don't figure it out? You keep trying. If you don't figure it out, of cour-, like, you just, you didn't figure it out that time. You'll just figure it out the next time. Right? Like, unless you die, right? And this is Jocka Willi, quote, which I'm so angry that it's his quote because I love it so much. But basically, "All failure besides death is psychological." Did you die? No? Did you figure it out? No? Guess what? You're not dead. Try again.

• 19:10Alex Hormozi?

  And I just wish I could pass it on because like, that's the worst case. And everyone's so afraid. What if it doesn't work? Okay. What if it does? Because if it doesn't work, it'll change nothing. But if it does work, it'll change everything.