The 4 Types of Money (and the 1 type only rich people use)

Alex describes the four types of money: past money (savings), income money, debt money (future earnings), and new money.

New money involves generating additional income specifically for a desired purchase, without impacting existing income or savings. This approach fosters resourcefulness and avoids debt.

Alex recounts buying a building, justifying the purchase with the potential for new revenue streams, such as saving on event space costs for portfolio companies. He used existing resources to generate new gains.

Sawdust money refers to using existing resources more efficiently to generate new income for a specific project or purchase.

Alex shares a story about Paul McCartney writing a song to fund his desired swimming pool, creating 'new money' instead of drawing from existing resources.

The focus shifts to creating new resources by utilizing existing but underutilized assets. This is better than 'draining' current resources for purchases.

The idea of creating a 'vacuum' or increasing demand for money through deprivation is introduced to inspire the creation of new income streams

Alex states the advisory services were spun up to cover the building costs mentioned previously. If two business machines are desirable, obtain the doper one.

The key takeaway is to stay ahead of spending by increasing 'new money' relative to new purchases, instead of just increasing lifestyle relative to income.