0 (3s):
Shake the room Fire Nation. JLD here and welcome to Entrepreneurs On Fire brought to you by the HubSpot Podcast Network with great shows like Success Story Podcast. Today, we'll be breaking down how an entrepreneur built a $5 million portfolio using one single investing technique to drop these value bombs. I have brought Kiana Dani into EOFire studios. Kiana is the CEO of Invest Diva, is an award-winning, internationally recognized personal investing and wealth management expert. She is a highly sought-after commentator, professional speaker, and executive coach who has reported on the financial markets directly from the floor of NYSE and NASDAQ, and won the 'Two Comma Club' Award from ClickFunnels in 2021. A five-time author, Kiana's books include 'Cryptocurrency Investing For Dummies', and she's the co-author of 'Million Dollar Moms'. Kiana's mission with Invest Diva is to empower and educate women to take control of their financial future.

0 (1m 1s):
Today we'll be chatting about going from zero to a million dollars just by investing sounds like a fairytale. We'll talk about the first three steps we need to take to get on the right track to create wealth. Then we'll talk about wealth preservation after you've created it. And so much more. When we get back from thanking our sponsors, looking for a business coach who has helped thousands of entrepreneurs increase profitability by an average of 104% annually, all for less money than it would cost to hire one minimum wage employee all on a month to month basis. Schedule your free consultation today with Clay Clark, a former SBA entrepreneur of the year at ThrivetimeShow.com/fire. The remarkable people podcast hosted by Guy Kawasaki and brought to you by the HubSpot Podcast Network helps you better understand the changing world with interviews from Thought Leaders Legends, and Iconic Class like Jenn Lim, Happiness Evangelist and author of Beyond Happiness.

0 (1m 53s):
Listen to the remarkable people podcast, wherever you get your podcasts, Kiana, say what's up to Fire Nation and share something that you believe about becoming successful that most people disagree with

1 (2m 8s):
Coming to successful as not doing just one thing. There are a lot of gurus out there who would tell you, just do this one thing and you will become successful. But unfortunately that is not the truth. You have to have at least five things that I hope I can cover in this.

0 (2m 25s):
Well, that's interesting because the topic of this episode is how you built a $5 million portfolio using one single investing techniques. I'm looking forward to seeing how that expands from just that one single investing technique. And let's just start with the question. Can we really go from zero to a million just by investing? I mean, it kind of sounds like some amazing fairytale.

1 (2m 52s):
It depends how you define investing because yes, investing is a way to go, but it's not investing just in stocks or just in cryptocurrency or just in yourself or just in your company is a combination of all plus influence. So the one thing that I talk about that helped me go from zero to $5 million after I got fired from my wall street job is a wealth ecosystem. And within it, there are actually five components.

0 (3m 27s):
Well, I do want to get to those five components, but I do want to first talk about the three steps. And in fact, what you believe are the first three steps that we need to take to get on the right track, to create this amazing wealth.

1 (3m 43s):
So the first step you need to take regardless of your career, whether you're an entrepreneur, you have a nine to five job. You're a mom, you're a stay at home mom, a parent, or even a teenager. The first step that you need to take to get started it to become is to become financially literate and take control of your own personal finances. So unfortunately, many people believe that they shouldn't really go in the financial planning route. If they're not making millions of dollars. Most people think that financial literacy is a side effect of wealth.

1 (4m 25s):
Whereas wealth is a side effect of financial literacy.

0 (4m 29s):
So you're going to take us through the three steps right now, Kiana. We just talked about becoming financially literate. We talked about taking control of our finances Fire Nation, because guess what? Nobody's going to care about your finances as much as you. So just get over that. There's some savior you're going to come and wave a magic wand and all of a sudden that you are going to be all taken care of financially. This is on you. So what is step two Kiana.

1 (4m 57s):
I meant to that, to what you just said, because if you can't manage a hundred bucks, you can't manage a hundred thousand dollars. You can't manage a million dollars. So step number one was becoming financial literate. Step number two is investing in yourself to create expertise or income producing expertise. And step number three is to compound. So invest in yourself, increase your income and invest that income. Those are the three steps.

0 (5m 27s):
Let's talk about compounding. This is something that I do love when I read quotes like compound interest is the eighth wonder of the world. He or she who understands it earns it. He or she who doesn't pays it. I mean, to me, that's just a fantastic quote and compounding, but a lot of people have heard that word and maybe get it, you know, on some periphery level. What is compounding? Talk to us about it in your words, in your definition, maybe give us an example of where it's. So,

1 (5m 58s):
So there's this very interesting book that is taught in Japanese elementary schools. It is called one grain of rice that explains compounding to second graders. So this basically goes on to tell a story of Ronnie, a clever girl, outsmart, a very selfish Rodger, and she goes on and asks for one multiply one way to rice, the first day, two grains the next day and three games the next day for 30 days. So that is the only thing that she asks the Roger on. The Roger thinks she's just stupid for asking this as a reward for something nice that she did for the Roger.

1 (6m 44s):
But what happens is that the first day she gets one grain of rice, the next day, two grains, the next day, four grains by the ninth day, she'll receive 511 grains of rice, which again, still doesn't look like much, right? But that number kept doubling. So she asked for the Roger to double the number of rice, grains of rice that she gave gives her. And the number kept doubling until day 29th, which when she received over 536 million grains of rice, and on the 30th day, she doubled that.

1 (7m 28s):
And that got more than 1 billion grains of rice, which basically got the Roger bankrupt, a single decision to begin compounding, which is exactly what this clever girl did resulted in more than 1 billion grains of rice, which is the aftermath of compounding

0 (7m 52s):
Fire Nation. I hope you do realize why a lot of people say that it's the eighth wonder of the world. I mean, you talked to people like Warren Buffett, Charlie Munger. They say, listen, the reason why I have so much money is because I've been at this for so long and my money's been making money. And that money that I've made making money is now making money on the money. And it's just this compounding effect that allows people who have been in the game the longest to have exponential rewards when they are investing financially correctly and intelligently, et cetera. And we're going to be talking about a lot of important things for you, Fire Nation. As soon as we get back from thanking our sponsors, something that is highly underrated, continuing to learn new skills.

0 (8m 34s):
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0 (9m 14s):
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0 (9m 59s):
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0 (10m 44s):
Fire Nation meet Clay Clark Clay has been coaching businesses since 2006. Yep. Even through the great recession and he does it for less money than it would cost to hire a minimum wage employee Inc. Magazine reports that by default 96% of businesses will fail within 10 years. Yeah. Clay's clients grow by an average of 104% annually. How's the team of possible Clay only takes on 160 clients. So he personally designs your business plan. Plus Clay's team helps you execute that plan with access to graphic designers, Google certified search engine, optimizers, web developers, ad managers, videographers, workflow, mappers and accounting coaches visit thrive time show.com/fire to watch thousands of testimonials from real entrepreneurs who Clay's helped over the years.

0 (11m 27s):
Do your research. If you thousands of documented success stories from real people, like you ThrivetimeShow.com/fire, then schedule your free consultation with Clay himself to see how he can help you with proven business coaching on a month to month commitment basis, ThrivetimeShow.com/fire. Now Kiana competition is everywhere, especially when it comes to investing. How can we stay ahead of the competition? So this is an

1 (11m 53s):
Interesting question because competition is the only person I compete with is myself. I actually don't think there was any competition because I come from an abundance mindset, especially in investing. So here's the thing. If you're competing in the stock market or in the cryptocurrency market, you're only going to have real competition. If you are day trading, if you're trying to beat the markets on a daily basis and speculate and get emotional and have buyers and sellers in the long run. However, if you start value investing, which is what Warren buffet does, which means investing in companies that improve life about our category Kings, that help you do things better, faster, and cheaper.

1 (12m 49s):
Not only investing in these companies are going to create competition by investing in those and encouraging others to invest in those companies, the stock, the shares, the price of those shares, that those companies are going to go higher, which means you are going to make more money. So in terms of investing, I don't believe there is any competition, but yourself, which means acquiring those skills to learn how to select the best value assets that suit your unique risk tolerance and your financial goals. There is competition in the marketplace if you have your own business. But again, I would argue that the competition could be completely vanished if you pick a niche.

1 (13m 38s):
So, as we talked about before, the three steps that I took to go from zero to $5 million was first investing in myself. What does that even mean? Investing in myself was to increase my expertise, increase income, creating cash flow. I know that right now, I'm talking about both investing and having your own business at the same time. And that's because there are both required when you are building wealth, we talked about compounding and we, you mentioned that time is the most important ingredient when it comes to compounding. Right? However, we all know that time is limited in inventory.

1 (14m 22s):
And what's interesting is that people who are not on the compounding route yet, they will spend a lot of time to save a lot of money or a little bit of money for that matter. And because time is limited and inventory investing alone is not going to help you become or achieve a financial freedom fast. Let me give you an example of that. And we'll go back to competition in just a little bit. So how compounding works is that you put your money, let's say in an asset, like a stock of a company or in a cryptocurrency or in any other person's company.

1 (15m 12s):
And you basically wait for that asset to increase in value, and then you sell it. So you buy at a lower price and you sell it at a higher price and boom, you make money. And now you can go back in, in a different asset in the same asset at a lower price again, and build on top of that. So you think using this method of investing and contributing to my portfolio, $500 per month back when I first got started, I went from $500 to $50,000 in three years, just by compounding on my investing, which is a great return, but you can agree that this is not a million dollar thing, but status right now, I was thinking, how can I accelerate this compounding so that I'm not bound to time because I don't want to become a millionaire.

1 (16m 14s):
Like when I'm 90, I want to become a millionaire when I still can enjoy that money. So how can we do that? And I just thought, okay, let's get crazy at this rate of compounding. What if I had put $500,000 per month in my investment account instead of just $500 per month at that rate of return, that investment would have turned into $50 million in those three years. Isn't that crazy? So how can we do that? How can we compound at a speedier manner?

1 (16m 54s):
And the answer to that is increasing your income. So that's what I meant by investing in the financial markets alone is not going to, it is helpful. It's better than not investing at all. Because if you invest 500 bucks per month, for 20 years, you are going to achieve a million dollar status, even add the average market return. But if you want to speed it up, it is to your benefit to also increase your income. Now, the other side is also true. There are a lot of entrepreneurs will make a lot of money. I know Ella did a bunch of numbers to make a million dollars per year, but they have nothing to show for it. In fact, some of them are broke.

1 (17m 34s):
Why? Because they are not financially literate because they're not putting the money to work. There are both incredibly important. So as when I learned about this and I learned there are things that I can do now online to increase my income. And there has never been a better time to learn these methods. So I went ahead, I invested in myself, I learned skills, increase my income online. And then I invested that money and boom, I first achieved my first million dollars in 2020. And then I went from 1 million to 7 million in 2022.

1 (18m 16s):
And the result was thanks to having all the components of this wealth ecosystem, not just one.

0 (18m 23s):
This is an interesting statement that you made that I really do want to explore on this topic. You believe that it's important to become a millionaire in the next five years. What do you mean by that?

1 (18m 35s):
It is very important that you realize that the modern millionaire is basically the same as a middle-class or a money manager in the seventies, because inflation is going up at an accelerated rate. We just found out that inflation is upset 7%. That is the highest in the past four decades. If you don't aspire to become a millionaire in the next five years, you are going to be pushed into poverty. So we have to actually rewire our brain about the definition of a millionaire. A millionaire is very different than a billionaire with a B, a billion is a thousand million, whereas a millionaire.

1 (19m 27s):
If you have $1 million in your assets and $1 million net worth, and by the way, there are four types of millionaires. We can talk about that. That only means that you can do the things that you want to can have a fairly comfortable lifestyle. And you may be able to leave a general. You may be able to leave a generous legacy after you pass. So you need to aspire to become the right kind of a millionaire, which is very different than the imagining the million imaginary millionaire. And the imaginary millionaire is somebody who makes a million dollars, but it doesn't keep any of it.

1 (20m 9s):
A real millionaire is somebody who has assets that after taking away the liabilities at equals and million dollars, but a real millionaire is somebody who has an investment portfolio at, or above a million dollars. And a real millionaire is somebody who has a trust fund that is at, or above a million dollars. And that equals financial freedom so that you don't have to worry about inflation for the years to come.

0 (20m 40s):
And I will say 100% of the time when people will look at me and say, Hey, John, I made a million dollars last year. I'm like, that's because it really is impressive to make a million dollars. But my follow-up question is always wanting to be how much money do you have in your bank right now? Like how much money do you have in your bank? You made a million dollars last year. How much money do you have in your bank account right now? And I think that's really important to think about furnishing, cause it's not always about what you make, but what do you keep? What can you invest? What can you allow to compound as you're going forward now, after wealth creation, Kiana, we need to think about wealth preservation.

0 (21m 21s):
How would you preserve your wealth after hitting your first million dollars plus?

1 (21m 26s):
Absolutely great questions. So that is, I would have to quote Rockefeller here. You want to own nothing and control everything because after he hit a million dollars, it is time for you to take a little bit of time to preserve that money so that if you get sued, if something happens, if your company goes bankrupt, if anything, if the markets crash, you are not going to personally get hit by that. And this is something that, again, even some CPAs don't talk about, and that is having a trust fund system that also helps you with being taxed. And it is exactly what the Elon Musks and Jeff Bezos of the world do to avoid the pain taxes and to preserve their wealth.

1 (22m 15s):
There is a system called non-statutory common law business stressed that is recommended to, for people, for anybody who has a net worth above a million dollars so that they can preserve their wealth and not pay more tax than necessary.

0 (22m 37s):
What would you say in addition to what you've already shared about wealth preservation? I mean, what exactly do people who hit significant wealth numbers need to do above and beyond what you just shared?

1 (22m 50s):
Well, it is a simple fact of investing get and compound and get and not adjusting their lifestyle to exceed the amount that they're bringing in. So one of the biggest mistakes that any person that comes to new money makes is they go buy a yacht or they go start traveling on private jets, or they change their lifestyle. That when you look at the margin from the money that we're making before and their lifestyle that they were using before they were living before the margin is the same. So they are still not protecting or preserving the wealth that we're bringing in.

1 (23m 32s):
So that is why it is super important to always be on top of your net worth like becoming an asset millionaire and then compounding the money and not changing your lifestyle dramatically. I'm not telling you all kids continue being cheap or continue looking at price. Tags can change. You can make Mo you can make moderate changes, but not to the point that will bring your net worth lore. And the second most important thing is to clearly compounded, invested and diversify your investments. But all of our eggs are not in one basket. I learned this from my dad. So my dad before, so I'm born and raised in Iran to a Jewish family.

1 (24m 17s):
And before the Yuan revolution of 1979, my dad was actually a very successful business owner. He had a company that incorporated that employed over 2000 people. And before I was born, my family was living a very good life. Then the revolution happened and my dad never thought to diversify his assets or protect his assets because he never thought that anything could ever go wrong in this country, which was Iran. At the time we were under the shock. And then what happened in 1979, the revolution happened, the old government was out and the new government came in and started cracking down on all the wealthy people.

1 (24m 57s):
So what happened is that they froze his bank account. They came to our house and got all of his assets, all of his machinery, and he didn't have any sort of diversification. So he went to zero below zero. Actually, we were actually going to kill him, but he survived. So that has become my obsession with diversification, because no matter how much you trust your government, you'll no matter how much you think things are too big to fail. There's always history is going to repeat itself. And the best thing you can do for yourself is to diversify internationally among different types of investments and among different types of businesses, different types of categories.

1 (25m 42s):
So that if something happens to one of the categories, you always have a route to escape

0 (25m 49s):
Jonny. You've given us a ton of value. Throw this entire episode. You've given us the components to becoming financially literate, wealth preservation so much more. What is the point you want to make sure we really get from our entire conversation? What is the one thing you want to make sure our listeners walk away with? And then we'll say goodbye.

1 (26m 9s):
The most important component that I would love your listeners to hang on, hang on to is that if you believe you can, or if you believe you can't, you are right. This is a quote by Henry Ford. And if you believe you can become an asset millionaire and portfolio millionaire, then you are going to be able to become it, knowing how to do it as less important than believing how you do it. And the people who succeed make decisions differently than people who struggle. And that's because the billing there's a high achievers think differently. So it goes back to mindset.

1 (26m 49s):
And I know it's cliche, but it's so true. So believe that you can, if I can do it, you can do it. And let's go,

0 (26m 56s):
Do you have any call to action for our listeners of where they can learn more about you connect with you and your business?

1 (27m 2s):
Absolutely. You can go to learn dot invest eva.com. Take my free masterclass, where I teach you how to take control of your financial future. Even if you have never invested before. If you're just getting started, if you want to diversify, whether you're a business owner, a parent, or a nine to fiver, I share basically my whole process for wealth preservation and compounding in this free

0 (27m 28s):
Masterclass. One more time, give us that URL. Learn

1 (27m 31s):
learn.investdiva, diva I N V E S T D as in Daniel, I V as in Victor, A.com

0 (27m 42s):
Fire Nation. You're the average of the five people you spend the most time with. You've been hanging out with KD and JLD today. So keep up that heat head over to EOFire.com type Kiana K I A N A into the search bar. Her show notes page will pop up with everything that we talked about here today. Links to everything, learn dot, invest diva.com as your direct call to action. Kiana. Thank you for sharing your truth, your knowledge, your value with Fire Nation today, for that we salute you and we'll catch you on the flip side. Thank

1 (28m 15s):
You so much for having me.

0 (28m 17s):
Hey, Fire Nation today's value bound content was brought to you by Kiana and Fire Nation, successful entrepreneurs accomplish big goals. That's why I created the Freedom Journal to guide you and accomplishing your number one goal in 100 days, step by step, visit the freedomjournal.com and I'll catch you there, or we'll catch you on the flip side, looking for a business coach who has helped thousands of entrepreneurs increase profitability by an average of 104% annually, all for less money than it would cost to hire one minimum wage employee all on a month to month basis. Schedule your free consultation today with Clay Clark, a former SBA entrepreneur of the year at ThrivetimeShow.com/fire.

0 (28m 59s):
The remarkable people podcast hosted by guy Kawasaki and brought to you by the HubSpot Podcast Network helps you better understand the changing world with interviews from Thought Leaders Legends, and Iconic Class like Jenn Lim, Happiness Evangelist and author of Beyond Happiness. Listen to the remarkable people podcast, wherever you get your podcasts.