Why You’re Not Financially Free (Yet)

AAli Abdaal
Small Business/StartupsAdvertising/MarketingAdult EducationComputing/Software

Transcript

00:00:00the only thing that's standing between you and financial freedom is just that you don't yet have
00:00:03the skills that you need for it. And the people that learn the skills are the ones that end up
00:00:05financially free. And the ones that don't are the ones that don't. Because it really is just a series
00:00:09of skills. Let's say your route to financial freedom is by starting your own business.
00:00:13What are the skills you need? Well, there is one set of skills that I like to label attract. So the
00:00:17skills of attracting customers. There is another set of skills that I like to call convert, which is
00:00:24how to convert customers from being strangers to actually giving you money for your stuff. And then
00:00:29there is a third set of skills called delights, which is that once you've got a customer for your
00:00:33service or product, whatever thing you're doing, how do you give them a good experience so that then
00:00:38they give you the four R's. The four R's are basically reviews, referrals, renewals, and most
00:00:46importantly, results. You actually want them to get results with whatever your product or service is,
00:00:49right? We attract, convert, delights. In the middle, we have the skills around operating. So this is sort
00:00:55of like operate. In the context of a business, this would be things like doing the taxes and
00:00:58stuff, right? You know, the basic stuff, registering a business, et cetera, et cetera. And then once you
00:01:02get to about a hundred thousand dollars a year in revenue and beyond, you then have another set of
00:01:07skills that we like to think of as scale. These five categories, they're just, it's just a set of
00:01:13skills, man. In the same way that you didn't come out of the womb knowing how to drive, but you learned
00:01:17how to drive. And in the same way you didn't come out of the womb knowing how to tie your own
00:01:21shoelaces, but you learned how to tie your own shoelaces. No one comes out of the womb knowing the skills of
00:01:25sales or marketing or customer service or delivery or finances or operations, but people that learn
00:01:30the skills are the ones that end up financially free. And the ones that don't are the ones that
00:01:33don't. I was having a conversation with one of our Lifestyle Business Academy students the other
00:01:36day. This is our online business school where we help professionals build their own online
00:01:40businesses. Links down below if you're interested. Anyway, let's call the guy John. He was like,
00:01:43oh man, I found, I found a customer who's really, really struggling with marketing her business.
00:01:48And she seemed really interested in me helping her marketing her business. But I was like,
00:01:53I don't have any marketing skills, so I can't help you market your business. And in that context,
00:01:58I sort of face pondered a little bit. I was like, John, John, my friend, we need to have a chat about
00:02:03this. There is this thing that we like to teach our students that we call the Teddy Roosevelt method,
00:02:08which is when you are starting out a business and someone asks if you can help with something,
00:02:13you say yes. And then immediately after saying yes, you figure out how to actually help them with
00:02:17the thing. You get busy learning the skill of doing the thing. This is from a quote from Teddy
00:02:22Roosevelt to that effect. Theodore Roosevelt, whenever you are asked if you can do a job,
00:02:26tell him, certainly I can, then get busy and find out how to do it. Really, really, really good as a
00:02:31method for building your own business and learning skills. And so John was held back. He said no to
00:02:35this client who wanted to give him money and wanted his help. And John actually had experience in the
00:02:40field that she needed the marketing help with. He just didn't have specific marketing skills. He was
00:02:44like, but how can I say yes if I don't, if I don't have marketing skills? And I said to him, I was like,
00:02:47John, how do you think anyone learns marketing skills? And John said, I don't know, I guess like
00:02:52some people do degrees in it. And I was like, ah, see, this is the problem, John. His conception of the
00:02:57world was that in order to learn a skill, you need to take a degree or you need to study it at
00:03:02university or something. That's just not true. Like if we really think about like marketing skills as an
00:03:07example, you know, what's the, what's the hardest part about running a business? The hardest part is
00:03:11actually getting the customers. So if we let's focus on the attract side of this, you know, okay,
00:03:16how do we actually get customers? Like what are the different methods for attracting customers?
00:03:20Let me just list a few. Number one is you can do content. So for example, you can do what I'm doing
00:03:24and create a YouTube video. That's a set of skills. Number two, you can run ads. So you can run ads on
00:03:30like Facebook or Instagram or YouTube or Google or TikTok or Snapchat or what have you. You can do
00:03:35outreach, which could be warm outreach. You could just reach out to people that you know and be like,
00:03:39hey, do you know anyone who needs a thing? You know, that's often the method that most of our
00:03:42Lifetop Business Academy students use to get their first customer, at least in 95% of cases. You can do
00:03:46cold outreach where you're trying to send emails or to strangers or trying to cold call them and stuff.
00:03:50And that's a skill. You can totally know the skill if you want. You can join communities, go to
00:03:54networking events, you know, this sort of stuff. Now, speaking of skills, content creation is one of the big
00:03:58high-income ones that, like so many people, are making a bunch of money off of. And if you are
00:04:01or are interested in becoming a content creator, then you're definitely going to want to check out
00:04:05Epidemic Sound, who are very kindly sponsoring this video. I have been using Epidemic Sound since
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00:04:33musicians. This is not some AI music that they just, like, use a computer to generate. And the artist
00:04:37gets paid whenever the music gets used, and so you'd be directly supporting the artist as well. And one
00:04:41of the coolest new features they've added is the assistant feature. Now, back in the day, I used to
00:04:45spend hours and hours and hours browsing the Epidemic Sound library to find the perfect music for the
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00:04:52the scene in plain English, and their assistant will automatically then look through the library
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00:05:03use the code ULLI50 at checkout, then you will get 50% off your Epidemic Sound subscription for the
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00:05:12Epidemic Sound for sponsoring this video, and let's get back to it.
00:05:14Let's take something like ads, for example. And let's say, you know, Instagram ads are your
00:05:20thing that you're going to try and do. Instagram ads are the sort of thing that John's client was
00:05:24like struggling with. But John didn't yet have marketing skills and didn't like double click
00:05:27into marketing skills to know that like Instagram ads is like an option, for example. But let's take
00:05:31the skill of Instagram ads. How does anyone learn how to do Instagram ads? Do they go to university
00:05:35and take a course taught by some old professor about how to do Instagram ads? Probably not. Almost
00:05:40to everyone who has learned how to run Instagram ads for any business in the world, learned it by giving
00:05:45it a go, watching a couple of YouTube videos, Googling it, these days asking ChatGPT to help
00:05:49them out. And that's about it. That's how you learn the skill of running Instagram ads. The concept of
00:05:54I can just learn how to run ads is scary. Like, oh my God, there must be so much to it. It must be
00:05:59really, really hard. People do degrees in this stuff. Well, you try it out. You're like, oh,
00:06:02actually Facebook makes it really easy. There's the thing called meta ads manager. You just go on it.
00:06:06You upload creative. If I go on Canva, they've got like five zillion templates for Instagram ads.
00:06:09Oh, wow. Shit. Could I just like take one of those templates and replace the contents of the image
00:06:14with like my own business? And now I have an ad. And then, whoa, there's all these like settings.
00:06:19Oh, this is confusing. Let me ask ChatGPT or let me like watch a YouTube video about it. Oh,
00:06:22interesting. I've learned that in the last few months, there's this new Andromeda update to
00:06:25the Facebook algorithm that actually means I don't need to twiddle around with all these dials. I can
00:06:28just let the algorithm do the work. Okay. Budget. You know, how much should I set my budget as?
00:06:31Talk to ChatGPT, talk to Google, watch a couple of YouTube videos. People telling you,
00:06:34you can start with like $10 a day. Okay, cool. Could I start with a $10 a day budget and just
00:06:37see what happens? Okay, nice. And within about a weekend or less, I would know because I learned
00:06:43the skill of running Instagram ads over the course of about a weekend and a bunch of friends I know
00:06:46who make millions from their businesses running Instagram ads, taught themselves the skill in
00:06:50about a weekend. And then of course, they refined the skill over time. You realize this shit is not
00:06:53that hot. And I think that is the fundamental mindset shift that I am trying to, that I would
00:07:00love everyone to have. And in particular is the one that I spend a lot of time on with our Lifestyle
00:07:04Business Academy students, which is that everything is a skill and everything can be learned. Something
00:07:08that feels like a black box to you right now, like marketing or sales or operations or finance or
00:07:14customer success or AI, all of it is just a skill. And it can be learned just like driving before you've
00:07:19learned how to drive. Driving seems really fucking hard, doesn't it? Oh my God, you're literally in
00:07:23like a metal thing. You could like kill someone. Oh my goodness. And then you learn, you learn how to drive.
00:07:27You didn't sit around for absolutely ages thinking, no, my goodness, in order to learn how to drive,
00:07:31I need to do a degree in it. Yeah, probably you've got a driving instructor, which is why I think it's
00:07:35useful to have a mentor and a coach when teaching you stuff. Driving is a life and death skill. So
00:07:38it's useful to have a driving instructor to do it on the road. And it's the same with almost any skill
00:07:41you can think of. If you want to learn marketing skills, marketing skills is a broad topic, but like
00:07:45Instagram ads, Facebook ads, YouTube ads, TikTok ads, all of these are different types of ads you could run.
00:07:49There's content. So you could learn how to do content on Instagram reels, Instagram posts,
00:07:53carousels, YouTube videos. I literally have video videos on how to make YouTube videos.
00:07:57You can film it with your phone. Cold outreach. There are people on YouTube who have made videos
00:08:00about how to do cold outreach, how to send emails to strangers and get them to respond. How to use
00:08:04tools like Apollo and these other things to like enrich leads and send emails to them. It's all
00:08:08easy stuff. And it's easy stuff because there's literally people who are world-class at doing the
00:08:12thing, who are teaching it for free on the internet. I'm going to let you in on a little secret.
00:08:15I went to Cambridge University Medical School, one of the best medical schools in the world.
00:08:18And to be honest, for me and most of my friends, 99% of what we learned was actually through YouTube videos.
00:08:24It was not actually through the lecturers that we had at university. I mean, some of it was,
00:08:28but for the most part, university lecturers are selected on the basis of their research output,
00:08:32not on the basis of how good they are at teaching, at least in the fancy universities in the UK.
00:08:37And even if the lecturer is really good, you attend the lecture once, maybe you watch the recording of
00:08:41the lecture, but then there's like other things you have questions in and turns out there's people on
00:08:44YouTube that have done deep dives into all of this stuff with amazing diagrams, amazing animation.
00:08:48In medical school, you learn how to do a cardiovascular examination, for example, like how to listen to
00:08:52someone's heart and what order of operations to do it in. And yeah, you do it in a lecture or in a
00:08:56seminar for the first time. But then how does every single medical student in the world actually drill
00:09:01the skill? They watch a YouTube video about it. There's a YouTube channel called Geeky Medics where
00:09:05some guys put together these videos where you can just watch it repeatedly and they can download a PDF
00:09:09with the mark scheme. It was those PDFs that we printed out, me and all my friends at Cambridge,
00:09:13to learn the skill. And it was those videos that we had on the background. It wasn't the fact that we
00:09:17taught, we got taught it at a lecture like two years ago. Even doctors are learning the skills of
00:09:22medicine, not from medical school, but from YouTube videos. I have some friends who are surgeons now.
00:09:26They're literally learning how to do operations. Now, of course, a surgeon learns the operation by like
00:09:31observing the senior surgeon doing the operation and like assisting it and stuff. But how do they know the
00:09:36steps of the operation? They watch a YouTube video about it. Thankfully, and this is a great service to the
00:09:41world. There are all sorts of surgeons all around the world who have literally recorded their operations
00:09:45and are talking through the steps. And you can, in a way, learn at least the theoretical component
00:09:50of the skill of literally taking out someone's appendix by watching a YouTube video about it.
00:09:53And then, of course, you're actually putting into practice when you're in a surgical residency or when
00:09:57you're on the job for that kind of practical skill. So if a surgeon can learn how to do an appendectomy
00:10:02from watching some YouTube videos and then putting into practice, why can you not learn how to run an
00:10:05Instagram ad by just watching some YouTube videos and then putting into practice? Once you start seeing life this
00:10:11thing, every single thing can be learned. It means that the thing of I don't have the skill for X gets
00:10:15replaced with I don't have the skill for X yet. The word yet is doing a lot of heavy lifting here
00:10:19because you know that everything is a skill. Everything can be learned. And if someone else
00:10:22has figured out how to do it, you can as well. I was doing a Q&A on Instagram the other day and
00:10:26someone asked, how do I build a business when I don't have any AI skills? If you replace that,
00:10:29how do I build a business when I don't have AI skills yet? Then it becomes like, well, learn the AI skills
00:10:34that you need. What are the skills you need for a business? Well, you need to know how to attract,
00:10:37convert to customers. You need to learn how to operate your business and you need to learn how to
00:10:40scale things once you're at a reasonable revenue milestone where you can actually hire people.
00:10:43You know, AI is a thing that facilitates all of these different options. And so these days,
00:10:47you can literally just ask ChatGPT being like, hey, ChatGPT, I'm attempting to learn the skill of
00:10:50Instagram ads. Can you help me figure out what the best AI workflows are to make Instagram ads? And
00:10:54guarantee you'll get an amazing response from Claude and ChatGPT and Gemini that will teach you the
00:10:58skill of doing that. We started running Instagram ads in our business like probably a few weeks ago
00:11:02with one of my team members. And I realized I did not yet have the skill of actually running
00:11:06Instagram ads in a reasonable way. And so what did I do? I asked Claude to teach me the skill.
00:11:10I watched like two YouTube videos about it. I got up to speed and then I started tinkering around
00:11:14with Meta Ads Manager and we managed to run some Instagram ads profitably. So we're actually making
00:11:18money off of running Instagram ads. If someone needs something or if your business needs something,
00:11:22is your immediate mind, oh, I can just figure it out. Or is your mind, oh my goodness, I don't have the
00:11:25skill and it's going to be so hard and it takes so long to learn the skill. I don't have time to learn
00:11:29the skill. It's like, bro, when you're on the toilet, you can literally just talk to ChatGPT and ask it to teach you the skill.
00:11:32If you literally don't have the time for that, you can put on voice mode and next time you're on
00:11:35a walk or doing the laundry or something. You can literally just ask it to pretty much teach you
00:11:38anything and explain it to you. And then of course, that's the theoretical component. Like you learn
00:11:41what to do in order to do the thing. And then once you start applying it in practice, that's when you
00:11:45actually gain the knowledge and the skill seeps into your brain, your body, your subconscious,
00:11:52all of that kind of stuff. But it really is just a matter of it's a skill. Everything's a skill and
00:11:55everything can be learned. And then it's just a question of just how long it takes, right?
00:11:58I really like this line from Alex Formozzi, which I think about a lot, which is that you can train
00:12:03anyone to do anything. You're probably not a neurosurgeon, but you could train to become a
00:12:07neurosurgeon and you could learn how to remove brain tumors from someone's brain. You have the
00:12:11ability to do that. The question is just how long it takes. I've got two friends who are neurosurgeons.
00:12:15The way they learn the steps of the operation is by watching YouTube videos, unsurprisingly,
00:12:18but then the way they put it into practice is because they spent 15 years training to get to a point
00:12:22where they're even allowed to put the skills into practice for good reason. So, you know,
00:12:26for you to become a neurosurgeon will take about 15 years. I was speaking to another one of our
00:12:29Lifestyle Business Academy students. That's called her Jane. Jane had landed her first client for her
00:12:32business and was helping this local coffee shop with their operations and automating aspects of their
00:12:37operations. And she was learning how to use Calendly and how to use Zapier and how to connect it up to
00:12:42a Google Sheets. And I was asking her, you know, how hard did you think it was going to be? And how
00:12:46hard was it actually? And she was like, yeah, you know, before I got started, I just, in my mind,
00:12:49I thought that operations is really difficult. And then I started doing it. I was like, oh, okay. I mean,
00:12:54the software just makes it super easy. And I can just watch YouTube tutorials. And I can just ask
00:12:57ChatDubt. And so she figured out how to literally automate this coffee shops, like operations, never
00:13:02having done it before, and just figuring out how to do it to understand how it all fit together. And then
00:13:06was literally saving them hours and hours and hours every week where they could actually spend making
00:13:09coffee rather than doing the admin. That's so cool. Everything is a skill issue. If you're not yet rich,
00:13:12if you're not yet financially free, it's just a skill issue, man. Like you just don't have the skills.
00:13:15You don't have the skills of attract, convert, delight and operate. And are those skills very difficult to learn?
00:13:19No, not really, because there's tutorials for literally all of them. Have you ever done a sales call before? You know,
00:13:22this is something our students in our LBA, a lot of others are having to do now. Sales calls where
00:13:26you get on a Zoom call with someone and you try and pitch them your thing. Before you do it for the
00:13:31first time, it seems like the scariest thing in the world. Then you do it a couple of times and you're
00:13:34like, okay. And then you watch a couple of videos about sales training. You attend a couple of our
00:13:36workshops. You ask your coach, whatever the thing might be. And honestly, there's loads of free YouTube
00:13:40tutorials about this stuff. And you're like, oh, previously I thought sales was like the scary thing.
00:13:43And actually it was like really, really hard. But actually there's a framework that you follow. It seems really
00:13:46hard and it seems like a real black box before you're in there. And then once you're in there, you're like, oh,
00:13:50there actually is a method to the madness. It is the same with everything. But the reason I wanted
00:13:53to make this video is because I want to make this video as a video that I send to all of our Lifestyle
00:13:57Business Academy students when they have this kind of mindset, or anyone really, who wants to be
00:14:02financially free, but has this idea that skills are hard to learn. Skills are not hard to learn.
00:14:07Like with the amount of free information you've got on the internet these days, with AI, like
00:14:10pretty much any skill you want is literally at your fingertips. And certain skills mean that like
00:14:17you become rich. Like if you have the skill of knowing how to attract customers, if you have the
00:14:21skill of knowing how to sell to them, you are way more likely to become rich and get way richer than
00:14:25someone who does not have those skills or the version of you that didn't have those skills.
00:14:28And shock horror, you can learn those skills. You can watch free YouTube videos. You can ask
00:14:31ADPT. You can take courses. You can sign up to our Lifestyle Business Academy if you really want.
00:14:33But like everything around you is built by people who are no smarter than you are. If you're at this
00:14:36point in the video, the only thing that's standing between you and financial freedom is just that you
00:14:40don't yet have the skills that you need for it. And learning skills is easy. If you want to become
00:14:43financially free, it's just downstream of learning a few skills. It's really not that hard. So with that
00:14:47said, if you enjoyed this video, there is a video over here, which is more honest advice for someone
00:14:50who wants financial freedom. Otherwise, have a lovely day and I'll see you next time. Bye.

Key Takeaway

Financial freedom is simply a 'skill issue' solvable by adopting a 'yet' mindset—replacing the belief that you lack a skill with the realization that you have not yet learned the series of teachable components required for that specific business task.

Highlights

  • Financial freedom is a direct result of mastering a specific set of five business skills: attracting, converting, delighting, operating, and scaling.

  • The 'Teddy Roosevelt method' for business involves immediately saying yes to a client request and then aggressively learning the required skill to execute the task.

  • Complex business skills like running Instagram ads, automating operations with Zapier, or performing clinical heart examinations can be learned in a weekend or less through targeted YouTube tutorials and AI-assisted research.

  • University degrees are not required for skill acquisition, as many high-level professionals, including medical surgeons, rely on free online video resources to master technical procedures.

  • Using voice mode with AI tools like ChatGPT allows for rapid skill acquisition during routine activities like walking or doing laundry.

Timeline

The Skill Framework of Financial Freedom

  • Financial freedom is not an innate talent but a series of learnable skills.
  • Business operations require mastery of five distinct categories: attract, convert, delight, operate, and scale.
  • Delighting a customer results in the 'four R's': reviews, referrals, renewals, and results.

Financial success stems from acquiring specific professional capabilities. The process begins with attracting customers and converting them into paying clients. Once a client is secured, the 'delight' phase—focused on delivering results and experiences—generates long-term growth through referrals and renewals. Once a business reaches $100,000 in annual revenue, the focus shifts to operational efficiency and scaling.

The Teddy Roosevelt Method for Skill Acquisition

  • Saying yes to a client opportunity before mastering the skill accelerates professional growth.
  • Conceiving of skill acquisition as needing a university degree is a primary barrier to entry.
  • Content creation, cold outreach, and ad management are learnable, high-income skills.

The Teddy Roosevelt method advocates for accepting jobs first and learning the necessary techniques immediately afterward. This approach forces practical learning rather than passive study. Clients often seek help for tasks like marketing, and rather than declining, professionals can use the opportunity to master specific channels like Instagram ads, content creation, or email outreach through free internet resources.

Overcoming the Learning Barrier with AI and YouTube

  • Learning to run profitable ads can be achieved over the course of a single weekend.
  • University curricula often lag behind practical skill applications found on platforms like YouTube.
  • Medical professionals frequently use YouTube tutorials to drill practical skills like cardiovascular exams and surgical steps.

The perceived difficulty of complex skills is often a mental block. Platform-specific tools, such as Meta Ads Manager, are designed to be accessible. By combining YouTube tutorials with AI prompt engineering—asking tools like Claude or ChatGPT to explain workflows—anyone can bypass traditional academic paths. Surgeons themselves use video resources to review the theoretical steps of appendectomies, proving that practical mastery follows theoretical exposure.

Practical Application and Mindset Shifts

  • Replacing 'I don't have the skill' with 'I don't have the skill yet' reframes learning as a tactical project.
  • Manual tasks like operations and scheduling can be fully automated using tools like Calendly, Zapier, and Google Sheets.
  • Sales calls transition from intimidating obstacles to manageable frameworks once specific training is followed.

The 'yet' mindset transforms a skill deficit into a temporary project. AI assistants serve as on-demand mentors that can teach complex topics during mundane daily activities. Students have successfully automated coffee shop operations using no-code tools after initial hesitation, confirming that software simplifies once-intimidating tasks. Consistency in applying these learnable skills is the final, necessary component to achieve financial freedom.

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