Alrighty. So in this video, I'm going to be talking about escape, velocity. Everyone throws this term around, so loosey goosey, but I'm going to give you my interpretation of this. And I learned this concept from my hedge fund buddies. Okay. So what is escape? Velocity? Escape. Velocity is the point at which your capital pools, the interest or passive income from those capital pools exceed your monthly expenses. And that number is $3 million in today's world. Okay. I'll tell you a story of when I achieved escape velocity at $3 million after tax, I was 27 years old and I just fell down into my bed. And I didn't know why I was feeling a certain way, but I felt this big wave of relief, just like pour over me. I remember thinking I've never felt like this in my life. All of a sudden, I just got more relaxed, like everything was going to be okay.
That allowed me to start thinking longterm. Because up until then I was under a ton of stress. I was unable to think of family building. I was, my relationships were pretty crap because I was under a ton of stress. But after that escape velocity, I was able to think about family building and think about longterm succession. So why is this so important? Well, I think a lot of people don't understand the importance of this escape, velocity principle. And you see this because typically someone who works in their twenties, they accumulate their skills. They hit their stride in their thirties, and then they start roaring in their forties and they might even get to escape velocity in their forties or fifties or sixties. However, there's a better strategy compress that period to get to your escape losses. So basically it's a race to $3 million after tax compress.
That period, as much as you can and try to do it in your twenties or thirties, typically someone in their twenties or early thirties, they don't have the family responsibilities yet. And they can spend the necessary time accumulating that capital to get them to escape velocity. Another point is that they have the energy, so it takes the energy. It takes to get to that point 3 million after tax. And it really short period of time is a ton and you need to be working and you need to have your energy. So if more people understood that concept, essentially, it's a race to 3 million after tax. Well, their behaviors might change. You don't really save your way to escape velocity. Even if you make a good salary and you save a hundred thousand dollars a year it's going to take you 30 years to get to escape velocity.
Now, how does one actually achieve escape, velocity? How do you actually make millions of dollars in your twenties or thirties, or how do you do it in a period of like five years? What I've seen, there's only three to do it. One is commission based sales, okay, because there's no cap with commission based sales. So if you just sell your ass off, you can achieve escape velocity at a very you can compress that time period, and you can get there in a few years to his business building, but you need to have domain expertise to be able to make something useful. And three is trading. I've seen traders do this. So for those of you who are not on wall street and you don't have access to one of the best investment banks in the world and you can't trade with a ton of capital, probably the best options for you are commission based sales or business building.
Okay. Now what's a better Avenue for if you're just going to start from the very beginning. Well, because you need domain expertise to build a business. One should start at commission based sales. And that's what I did. I started as a commission based sales person was able to accumulate capital in my commission based sales job. And then when I had the skills of end to end selling, then I was able to build a business. And the thing is a business business building is not that hard. If you're a rockstar commission based sales person you just got to figure out product development and fulfillment. If you figure it out front end and marketing and sales, it's actually much easier to figure out product development and engineering on the backend. That's why a lot of these really, really wealthy people. If you look at their origin stories like Warren buffet, some of the biggest entrepreneurs on the planet, a lot of them started door to door sales, commission-based door to door sales.
So if you're just starting out from scratch, do commission based sales. If you want to do a business, you're basically doing commission based sales for yourself. So you gotta learn that. And if you want to hit that point, escape velocity in your twenties or thirties, you should learn from somebody who has done it in their twenties or thirties. That's the key. If you're going to learn from someone who did it in their forties, fifties, or sixties, the information and the cause effect relationships that they have might not necessarily apply to you in your current situation. That's what I did a strategy that I used and it worked. So a lot of information in this video, hopefully that was helpful.