I disagree with the notion that being an employee means you will never have wealth. If you live below your means and make smart investments, you can build wealth. It will just take a while.
+TheRosswise Agreed, I got a good start while my wife and I worked for companies and we saved prodigiously & invested. The part I disagree with is the claim that you need to own a franchise biz - that's crazy-talk. Franchises are expensive, have risk, require retail biz-skills , and require a LOT of time to manage & operate. If you have some investment money and no great job skills, then a franchise may make sense. If you are wealthy and can hire someone t manage the franchise(s) then it makes sense. It makes no sense for a well paid engineer or SW developer or doctor to spend his time overseeing a Starbucks or McD; that's opportunity cost. Better off learning to invest that money in stocks.
Yeah Brian Green, sounds like you are trying to sell something that may not be on the up-and-up. Shame that a run-of-the-mill S&P Index Fund does everything you are pitching, at a higher average rate of return. And the best part is nobody has to pay you anything to get the knowledge on how to invest in one.
+Brian Green >>People don't get it. A 3% average rate of return in the stock market won't make you rich. YOU don't just get it. The total S&P return for the past 50% years is 7% annually - not 3%. You can replace your entire income by investing 20% of income every year for 25yrs w/ reinvestment. At that pt you are relatively wealthy AND have a serious income stream. >>Unless you know more than inside traders, you're at the whim of market volatility. That's short-term thinking and not relevant to a LT investor. Yeah it took ~5yrs for the S&P500 to hit a new peak after 2007, but that was a great time to invest, more. Anyone who stayed invested from pre-crash is doing fine. >>And when you do have a profit the government comes along and wants their share in taxes(after allowing the federal reserve to print like crazy and devalue or create rampant inflation). Right, government takes a big bit all along the way, but LT cap gains and dividends are taxed at a lower rate than your earned income. Further you can defer the taxation by investing on one of the government sanctioned retirement schemes. That allows your capital to grow faster. The Gov has printed like crazy, but all the inflation has been in government bonds due to bank regs (Gov bonds are a very poor investment IMO). >>Try a safer approach to retirement which gets in average 7-8%, tax free growth and tax free distribution. An average person can create a million dollar retirement, the sooner they start the better of course. Roth IRA, else foreign covers of dubious legality. But high-earners can't contribute to a Roth, and the max is $5500/6500/yr - too low IMO. Roths are a great first step but it would take 31yrs of adding $5500 at 8% to reach $1mill in savings, and even then it's only throwing off 8% ($82k/yr in income). If the next 31yrs inflation is like the last 31yrs - that Roth will throw off the equivalent of $42.5k/yr; nice income but nothing to write home about. Anyway your 8% isn't realistic, unless you accept higher risk. Nah ! You need to invest more income that that for most ppl. Saving ~20% of income takes discipline and willingness to live below your means. Pays off in the long run. >>It may take a different look at how money works for you now. I have free videos that explains this money alternative. Ask and thou shall receive the links. Anyone serious should be reading AAII journal, Morningstar, Hulbert - and understand the concept of risk adjusted return - not listening to youtube trolls.
I find wealth is relative to what you consider to be your level of happiness. I find people with less “things” tend to be happier but would not be considered wealthy whereas people with monetary wealth tend to be busy looking for the next best source of income to keep up with their lifestyles but aren’t truly happy. We are raised to be consumers and are constantly trying to live “up to” what we perceive to be happiness with wealth. Stop the endless cycle and find happiness with what you have not what you want and enjoy life while you have it to enjoy.
Here's some tips for becoming successful. 1) Take control of your own health. 2) Learn about the power of your mind. 3) Follow the path of people who have already done what you plan to do. I found these tips from the Magic Progress Shortcut (check it out on google) definately the most useful course on becoming wealthy & successful that I've seen.
Yep , i guess its best to keep the herd in ignorance and confusion.. That way you can more easily manipulate them in the news about stock prices rising or falling blah blah or housing market booming blah blah, about how you absolutely NEED that new Iphone that is gonna cost you thousands.. You know, its best if people are kind of clueless.
By the way.. Im very sad to see it but my own sister came to me yesterday and told me how they had now bought a BRAND NEW CAR and that they needed to pay off a consumer loan first so that they could be allowed to buy a house............ I was like..... Now i understand how people go broke and stay in the hamster wheel ha ha... I mean, i have plenty of examples like this from just people around me spending money and acquiring only bad debt upon more bad debt AND THEY NEVER ASK QUESTIONS IF THAT IS EVEN THE BEST WAY TO RUN THEIR OWN PERSONAL ECONOMY :D All they seem to think about and know is how they can be allowed to accumulate more bad debt and get more liabilities that they dont really even know why they want.. Im on one side VERY HAPPY i found the truth but at the other side im very sad that people close to me, family and friends are burying themselves slowly.
This is the first video I saw of his, but I would bet cash money that if you go to his site he's selling one or more network marketing "opportunities". I've never seen one of those that wasn't a pyramid scheme.
WildNights They're not all pyramid schemes. Be careful that your skepticism doesn't cost you an opportunity that could positively change your life financially. I personally know many that wouldn't listen to me when I tried to show them a *real* business that they could have used to improve their financial situation. Today, those same people are no better off. And in some cases, doing worse. ALL THANKS TO SKEPTICISM. So many don't realize ALL corporate run franchise businesses are of the B quadrant, and they are all around us. Ironically enough however, people NEVER criticise "pyramid" franchises such as Pizza Hut, Papa Johns, Best Buy, Subway, Burger King, Verizon, etc. They instead eagerly spend all their hard earned income supporting these pyramids. 🤔 Corporate operated stores are essentially just "copies" - or distribution channels- of an original *SELLING* franchise that pays a percentage to the original owner. THAT'S WHY THEY'RE RICH!! The owners earn enough income off the copies that they don't need to work. It's a brilliant thought process!! Question: Would you rather earn on 100% of your own efforts in a day, *or* would you rather earn 1% on the efforts of 100 people? A *legit* home based business operates the same way, except there are no employees. I can't speak for all home based businesses, but mine follows a duplicable system for success. We also deal in relevant products that solve real world problems. I assume you're not in the B quadrant, bcuz otherwise you wouldn't be criticizing so hard. Personally, I'd rather be rich because I was curious, rather than be broke because I was skeptical. If you work a job (J.ust O.ver B.roke), you probably don't know the concept of P.rofits O.ver W.ages E.quals R.evenue. As the acronym suggests, there's much financial power possible in developing a *legit* business. That includes a home based business with a *system* in place and *in demand products that people want because they work*. Only a system (B quadrant)system allows your income to grow exponentially, rather than you getting paid base in the time you alone put in. Income based on time severely limits earning efforts. The key is to be able to earn income beyond your own efforts. The trick is to identify the real business from the scams. I hope this helps clear up any confusion about pyramid schemes. ☺
Vance Edwards II That whole wall of text is the same bullshit spiel that every pyramid scheme uses to sucker desperate morons. It's pathetic. All you have to do is ask yourself one thing: Would I buy the core product of this MLM if it was on a shelf at a store? The answer is *always* "no". That's why the manufacturer isn't selling it in stores! They're trying to sucker people with their *payout scheme* and a bunch of empty platitudes. You're damn right I'm skeptical. Skeptical people don't give their money to thieves in exchange for false hope. Pyramid schemes *only* profit the people at the top, and the people at the top are sociopaths.
I have had the fortune to come from a family that, at one time, edged into that group most would consider rich, only to lose that position by adopting the mindset that they had finally "made it". Financial literacy is an ongoing process that must be adapted to every step on the ladder up. Failure to adapt will lead to the loss of amassed wealth in far shorter time than it took to make it. We are fortunate to live in a country where it is possible to become exceptionally wealthy by pursuing almost any career. All that is required is the discipline to consistently arrange finances towards the goal of financial security. This is very difficult to do given the 24/7 bombardment of a culture advocating debt slavery.
Buying assets is a good thing to do, but don't lever up too much to do it. Problem with Robert Kiosaki is that he advocates levering up to buy things like real estate. That's fine but what happens if the rental income drops quite a bit and can't support the loan required to buy the asset? Look how many landlords that went bankrupt in 2007-2009? If you've been to his seminars you know that he (or really one of his speakers) plays on greed. Use leverage with caution! In the presentation he wanted people to buy assets with credit cards! That's insane. Whatever your income, people should put some money aside so that they can have an income stream in retirement, but spending a life chasing after money is a fool's errand. Don't do it, in the end it counts for nothing anyway. Enjoy life a bit. What is a waste is someone who has been so miserly to amass a huge fortune but having done nothing in life. Of course spending everything for the here and now is equally foolish. So, it seems to me the key is finding the right balance.
I00% AGREED. I like Robert Kiyosaki's concepts as well. But noticed as you did his over-willingness to go into debt to buy assets. This could have someone spending just as much time running from debt collectors as they spend chasing assets if those assets under-perform. Truly, the key here is BALANCE. A balanced life will leave you some time to enjoy it along the way as you run your race. If you spend all your time on the money wheel, you could end up missing out on some of life's other treasures.
Well for your example of the landlords in 2007-2009, it was different because most people who went brankrupt, they were spectulating. That is NOT investing, that is gambling. For assets, it really depends on what you buy. If you compared a real estate in the middle of no where and a real estate in a good location like NYC. The value of the real estate in NYC continue to grow even when the financial crisis hit.
House is a liability under that definition but if you have no house you might spend even more. Could there be a definition for such item you invest in to avoid to spend more?
I loved this video! You're a great teacher and I learned a lot from the information you presented regarding income, expenses, assets and liabilities. However, please note that Ray Crok is not the founder of McDonald's. The founders are Richard and Maurice McDonald, and they started the business in 1940. Ray Crok did innovate the franchise model, to your point. As an entrepreneur who has started ventures that others attempted to co-opt, the issue of naming the original co-founder is important to me.
Unlike STUFF, property is finite. They aren't making any more land, Yes, it can drop in value but never stays there. You make your money when you buy it. I have owned property for the last 60 years and am very pleased with the cash flow I have built. I live in a 1500 SF SFH that was built in 1984 and own rentals that are much nicer than mine but I have no payments except for some of the properties I rent and the renters are paying them off for me including the taxes, insurance and providing my cash flow. In addition to that I can deduct the expenses from other streams of income. They have all gone up in value over $100,000 each since they were purchased. What Gasun is saying is absolutely true. Stop buying STUFF. Save your money then start by buying SFH rentals then apartments and over the long term you must win!!! No one is saying it's easy. Only you can decide your future. Commitment is key.
The problem with buying assets than buying more assets with the income from the assets, is it can take 5 to 10 years to have income you can actually use on more assets and live on. If you are planning to be a millionaire it will probably take you all your life so you won't enjoy the money when you are young. The assets are really for your children or grandchildren and that work you did for 50+ years they can blow it in 5 years because they don't know the struggle or work. They will probably sell all your assets and waste it in expensive cars,homes, and luxurious things.
Appreciate your concern, and attitude for taking the action. Nowadays, there are multiple ways you can generate 10% interest on your investment. Look for low-risk mutual funds to deal with your money. Also, nowadays, there are companies, which do bring you an interest of 50-70% a year. (recent company I am following) |Tough, if the company would go down, the money would be lost. Preferably, in your position, Mutual Funds will be a solution
I am a fan of index funds, but you can't expect a constant 10% return on those either. Anyways at least we all agree that his example of earning 10% from a bank was extremely unrealistic
Wealth isn't built primarily from returns. It's built primarily from saving (not spending) income you've earned. The returns are just the icing on the cake.
THE MILLIONAIRE NEXT DOOR is also a very good book. Two college profs. interviewed all of the millionaires that they could in this country. Most of the millionaires in this country are small business owners who invest the excess income that they can't use by plowing it back into the company into stocks and then ignoring them because they are too busy to pay much attention to them. The authors don't tell you how to invest your money, they tell you how to avoid the mistakes that keep you from becoming a millionaire.
Steven Larratt write a quick guide and publish on Amazon with a disclaimer on how you did it for the rest of us. That would be awesome! Then come back here and share the title...
As you said, 9 out of 10 businesses go bankrupt in the first 5 years and getting into a franchise only increases your probability of success. This is a great topic for a follow-up video, as well as how much money (usually quite a lot, like a few years' average net salary) to actually get into a franchise.
Yes we have to truly become balanced internally and make sure that we are committed to our goals and to our visions! We have all the power within us! Sending love, happiness and peace to everyone! 🙏
Its hard to save and invest if all the money one makes has to go on bills and debt. And keeping all the bills paid on time means that person is a good money manager.
Apply the 70/20/10 rule to your income. 70% to expenses (food cloths housing costs)- 20% to debts (credit cards ect..)- and 10% put to savings/investments. It starts slow, but it will grow.
Hello Mr.Simon. You asked we leave you a comment. I found all your information objectively valuable. Thank you. Respectfully sir, I wanted to share with you a few remarks. I coined it "The Law of One One Ten" whereby the 1 tenth, of the one tenth, of the 1 tenth represent the super elite. Though nothing can be said to be certain, it is more accurate to say 0.001% can only flourish because the 99.999% consumers cannot. In simple essence, financial freedom for the select comes at the price of financial destitution for the rest. This is an inescapable universal truth. It was the case for the Egyptian economy, the Judea economy, the Roman economy. It is not to be negative or wage a moral or opinionated argument that I share this. MLM's are part of a greater system, and this greater system has established laws to ensure orderly function. Invariably, it is noteworthy to kindly mention sir, that the statistic you provided is slightly inaccurate save for the 1% figure, which is actually closer to 0.001%. Consider this: out of 7.442 billion people (2016), less than 100,000 people are part of the ruling elite. 1% would actually roughly represent 70.4 million who are the wealthy ruling elite (right side of the quadrant). Respectfully, this is an over simplification and statistically false or inflated at best, and I urge you to state your information from any quantified, certified and sourced data. After a decade of research, that I know of with factual evidence, the majority of economist now agree that the existence of no more than 100,000 individuals control the entirety of the global economy. I would like to contribute by kindly directing your attention at other works on economic classes of the U.S. and hope you gain valuable insight. Source: Gilbert, Dennis and Joseph A. Khal " The American Class Structure: A New Synthesis" 4th edition. Graciously and earnestly, The Man in the Iron Mask
This video is direct and simple. This should be used as a teaching aid for all 8th graders and as a final quiz prior to 12th grade graduation. So sad our children graduate with no working knowledge of this information.
great explanation and illustration.i will share your video and I have been applying these concepts for about 1year now . I am make small leaps and now I am self employed. I also have one active investment and one passive investment. I will keep on building.
A great and easy to understand video. He makes his case using things that we have all had a basic education on, Income Statement and Balance Sheet. He uses some real life people and statistics to make his point, in conjunction with the two statements. His talk is clearly defined in the beginning. His message is a complete package, from the beginning to the end.
I went to work abroad and to do missionary work. . .was thinking of plan "A", but it didn't work out so now I'm onto plan "B" - considering retirement options is part of that plan.
All these things start from the premise that you have the disposable income to buy assets. It's all bullshit. If you don't start off rich, your odds of becoming rich approach nil. Your odds of becoming rich by starting a business aren't quite as bad as your odds of becoming rich by becoming a professional athlete, movie star, or rock star, but they are still quite low. He even admits in the video that 9/10 businesses will fail in the first five years, but what he doesn't mention is that even of those that survive, 9/10 will be making less than $100K a year. That's not exactly rich, and for the balance, you're looking at a success rate that is already down to just 1%. And these are the people who had at least some disposable income to get started! If you read the histories of successful entrepreneurs, you'll find every one of them had some lucky break that catapulted them to success, a lucky break YOU can't engineer for yourself. A sobering story is the history of Milton (the milk chocolate guy) Hershey's father. He was an entrepreneur who started 17 businesses in his lifetime, and failed every time. Nassim Nicholas Taleb, in Fooled By Randomness, talks about survivor bias, the tendency to evaluate successes independently of failures, which is essentially the mistake everyone makes when it comes to taking advice from the rich and successful. No one mentions or compares what the failures did to see how much chance, luck, and factors outside the control of the entrepreneur had to do with the entrepreneur's final result.
This answer should have more thumb-ups, but I can only give one. Survivor bias is such an important notion that everyone should learn. The winner's story shines more, so more people listen to it, but we often ignore the dozens of failures that happened in the same time frame. If everyone won all the time at the same time, it would break the laws of mathematics, because resources and money are in finite quantities at any given time.
Actually the do talk about failures. A lot of them. Because that's what made them successful today. Without all that valuable experiences gained from past failures, they will not be the men/women they are today.
Sure, but at any given time, individual people fail a lot and we don't hear about them. As I said earlier, not everyone can be rich *at the same time* .
I agree 100%... and notice one other thing... how many of these "youtubers" talk about financial success concerning what the rich do... but somehow are not rich themselves using the same techniques? Its all a game, the successful simply got lucky with a skill. Rich RUclipsrs got lucky by being first and building a following, get paid by advertising and affiliation... not by selling the crap techniques they talk about. Successful youtubers then use the money they made to buy assets outside of youtube, make money with them, then get back onto youtube and talk about it reinforcing the youtube channel and building it further. A cycle few get lucky with and tens of thousands try and fail.... just look to the right on your screen and click "show more" if you have any doubts...
I partly agree with this. You can save, but you have to do this outside of fiat currencies and instead preserve your savings against inflation which is a hidden tax. For example, if somebody born in the 1940's or 1950's converted only 5-10% of their net worth in savings and converted to gold and or silver coins etc. it would be worth millions by today's inflation even though gold and silver have purposely been manipulated by the banks on Wall Street for many years. It's called "Naked Shorting the Markets." The problem is the federal reserve system or the central bank devaluing all the fiat currencies. For a better understanding of what I'm talking about, please watch "The Biggest Scam In the History of Mankind" by Mike Maloney or his other series "Money Vs. Currency." You can also see "The Creature From Jekyll Island" by G. Edward Griffin along with "Century of Enslavement: History of the Federal Reserve" by James Corbett. By the way, keep in mind the pre-1965 coins were 90% silver and the United States was on the gold standard until August 15, 1971, when Nixon took the nation off the gold standard. Again, it goes back to the federal reserve act of 1913 and the meeting on Jekyll Island in 1910 and the banking panic of 1907.
Stephen Street yes this idea is rich people advise advocating and saying live below means to save but the thing these wealthy people or rich people advisers cant understand is ...you cant begin to live below means because many already are and they have nothing left to save or invest ...most pay for necessity items to live and that gives zero dollars left ..to invest ...
Thank you! I'm stuck in the E quadrant and sick of it! Thinking of getting educated, but at 31, I think my time would be better spent in the B. Great video...just what I needed! Subbed.
I'm just curious did you find what you're looking for yet? I can appreciate that you want more from Life and would rather go after it than be negative & vindictive like a lot of people. I've been successful in business & "network marketing" and like it alot, but have to admit, most people struggle because sales & recruiting just isn't easy for them. And because traditional network marketing is very 1 dimensional (you can only make money if you sell/recruit) you can understand why the % of people who win is very small and the profession gets a bad rap.. If you're open, my wife & I found something I call the perfect answer to traditional NM. We help people financially through something called "Income Shifting".. Feel free to visit IMAGNLife.com/shift for info & call our office at 1.323.505.6066. All the best! - JB
Anybody can become wealthy who lives below their income and saves and invests the difference. It matters not whether you have a job, are self-employed, a business owner or investor. You must avoid most credit. Pay cash for most things and acquire income producing assets. Keep luxuries like vacations/traveling, expensive cars and other consumer goods to a bare minimum until later in life when you have more money and hopefully own your own home free and clear. Without a mortgage payment you need very little to live on.
STUDY THE BIBLE ..... God's Word tells you how to be WEALTHY .... God's Way !!!! Godly Men and Women WHO SERVE GOD and OBEY HIM ..... CREATE WEALTH & ARE PROSPEROUS .... BECAUSE THEY ARE GIVERS !!! IGNORANCE creates RELIANCE ON OTHERS. WISDOM creates RELIANCE ON GOD. BIG DIFFERENCE.
First video ive come across from your channel, I saved it liked it and will continue to watch it because of how thorough it is. Probably should link to your blog somewhere here
everybody can't be rich it is impossible because we live in a finite world. it's possible for individuals to get rich because, capitalism is competition and all competitions there are winners and losers and it is the winners that Keep the Spoils of the losers. in competition it is the most powerful it is the winners, has nothing to do with hard work or skill, it has only to do with who controls the money. the people at the top are always the people who control the money. the people at the top make the rules the rest of us must live by every economic system is completely controlled by the top.
i disagree... if i can fix computers, and you can make food. we have an endless amount of wealth we make for each other. money is just a middle man in everything.
You can take your "finite planet" nonsense elsewhere. You'll see when we start colonizing mars and discover new minerals from deep underground. Then we'll see if we really are in a "finite" planet.
Kas Katari when the world runs out of things like platinum and gold and other "required" metals, a new solution will be made or found. always has and always will. Provided we have a type of free market.
***** no need to look for another solution We already have one. It's called basic math and Common Sense. Basic math tells us how many resources we have Common Sense tells you not to use more than we can recycle.
Save 2500.00. Then get a 2500.00 loan from your bank or credit union. The interest rate should be lower because it is collateralized with the money in the savings account (you can't spend the money in the savings account until you pay off the loan). Use the loan money to buy dividend paying stocks such as (not telling you to buy this stock specifically just as an example) CIM, which pays a .50 cent dividend on each share. When you have payed off the loan you have established good credit for yourself while collecting dividends. If you are able to add to your savings while doing this process you can repeat it at a higher level next time, maybe with 3000.00 this time. Or if not, repeat it with 2500.00 again.
Ok captain! Never learn to write, never learn to read, never learn to catch fish. Then let's see how you will capitalize on all the luck destiny brings across your way.
Agree with "anonygent" below. these "get rich guys" have no sure fire way of getting rich other than selling you a "system" promising you riches. There are three ways to get rich, 1) marry into wealthy families, 2) Luck, 3) start with money.
Yes it is :) and it looks bad if you know math too :D If 5 people works under you and they have 5 that works under them and all goes on and on it is just 30 +- cycles until you run out of all earth population :D
It is the same structure as a job, except the selling is done people to people. It gives poeple the opportunity to become wealthy, but the chances are slim. However, not everyone is in it for the wealth, some people would just like an extra 300-500 dollars a month for food, investments, or just to go on a nice vacation. Everyone has different goals in network marketing, so it is not an end all be all solution to problems.
The fact that you think an MLM is a pyramid just shows how you are not educated. In an MLM, you are an owner with leverage. At a job you have no leverage. You need to leverage your time. That's what the owner of the business you work at has done. He has leveraged his time and duplicated himself in you. The business owner has an override on you. That's what every business owner in the world has on their employees. You need to be an owner with leverage to get ahead. An MLM makes you an owner with no overhead or expenses. It's actually a better business model.
That would be a Ponzi scheme, which IS a scam and therefore illegal. Network marketing is a business model, that's it. It's not for everybody, just like being a dentist is not for everybody. I suggest you open your mind.
Yes, your monetary system is based on debt. Anybody interested can watch the entire 3 part series of "Money as Debt" along with "The Biggest Scam In the History of Mankind" by Mike Maloney along with his other series of "Money Vs. Currency."
they don't teach how money works in school. it's like going to a futbol game and only knowing the rules to horse shoes. 99% of the people do not know the rules. even worse, with the internet right in front of them they play games in social garbage sites. they don't know what they don't know.
It's a hard concept for people to invest into assets instead of just bills, etc... but it'll make one of the biggest change in your life. Invest in Assets that will eventually return that money at a consistent rate. Great advice.
My Dad wasn't a millionaire as a Engineer business owner . Untill he sold his business after working 7 days a week 35 yrs . Untill he paid off his mortgages he was now are multi millionaire
You want to know the real reason why the poor and middle class won't be wealthy ? The poor realise the struggle of being poor and they are more likely to donate to a charity to help the poor. The have empathy for life's struggles. Middle class are the blue collar workers whom work hard to make an honest living. Wealthy take from the poor, middle class and charge interest. Wealthy charge fees and fines to the poor and middle class. If fines are not paid they charge more interest and threaten to destroy credit. They then threaten legal action if fines are not paid. Long story short, wealthy charge fees and interest and take money they don't earn. Wealthy don't have to work hard and just let the poor and middle class do their work for as low pay as possible so they can get larger profit. Wealthy make money they don't earn but take by force.
I think there is some truth to your reply but I also feel you may have missed the message of the video. There is nothing morally wrong with this concept of acquiring assets and owning businesses. If it wasn't for business owners and investors only government employees would have jobs. Make a decision today to use your money to buy assets and replace your job income with asset income!
Jay Silva poor and middle class pay for the lack of knowledge what rich has, it's not rich people's problem rather it's fault of poor and middle class who refuse to change.
No Its about greed plain and simple because even if you earn a level of success the greedy will fight some way to take your earnings for nothing. Bullying even in the market place. To be honest the game is rigged !
@PeaNuts So after watching the video, what draws your attention is the false idea he's plagiarising Robert Kiyosaki? Really? Clearly, you don't know what the word means, or else you're lying. Let me fill you in ... "the practice of taking someone else's work or ideas and passing them off as one's own."
Business owners do not necessarily make more than employees and it could actually be a lot more work. Anyone can become an investor and add to their income. All you need to do is make sure your income is greater than your expenses and buy assets. I think that you should have two accounts. A lower-risk retirement fund so that if the market becomes chaotic your most important funds will be relatively safe and a shorter term higher risk fund which is for unused disposable income. In the past this was less feasible because of high trading commissions. Now with Robinhood you can trade for free. Yeah it's better to be an entrepenuer but its not for everyone and MCD franchises only pay the owner about 50k a year and require a million dollars of liquid capital to start.
The keys to getting rich by the time you retire? Defer gratification. Save money. Get a job with a company with good benefits, a defined benefit pension, and a 401k with matching. Invest in good companies for the long term - like Warren Buffet.
Doug P The problem with that is by then most of your life is over. The younger we are when we achieve wealth, the better off we are. I personally like the idea of leveraging my efforts now so I can retire early and enjoy both the time and money. I can only speak for myself tho. 🤔
Yet to find a system where you put a certain amount of money in investment stocks or whatever than you get something monthly not yearly but monthly. Which is the best one for this?
This video is great. I grew up ridiculously poor and have worked my way into middle class (home owner with mortgage payments), payed off cars entirely, own two businesses in additon to working full time. However, I have something to add: you can still invest your time wisely as an employee. If you love travel and it can better your businesses, you can work for an airline to see the world/country. For nearly free education you can work for a college or university until you gain the connections and education to move into the wealthy category with no debts, and with sound investments. I agree with him that it's all about strategy and being smart with the resources you have. Even if you're just starting out, are in the poor category, wealth is absolutely attainable even if further from some. My channel listed here is my network marketing business and I also have a photography, graphic and web design company: I'm happy to help people realize and achieve their goals! I'm going through the steps myself
Completely agree with everything you said, the only way to be time rich is to have either a business or investments working for you. The only thing I would add is that you can move from being an employee to being an investor rather than owning a business which can be risky, as you said 9 out of 10 businesses will fail within the first five years. I live in Perth western Australia where you can make 200k a year driving a dump truck in the mining industry as an employee. I know this isn't typical but if your smart it dosen't take long to accumulate the type of investments that will allow you to become financially free. I think the main thing for someone starting out is to move to an abundance type mindset as you said to allow yourself to recognise opportunities as they present themselves. And continued education is the key. Just don't get sucked into anyone that tells you internet marketing or starting any type of business is easy. Look at any great entrepreneur and you will find the common aspect is that they have all failed or come close to losing everything at least once. Perseverance and the willingness to do things that others wont is the key. If you are willing to do only what’s easy, life will be hard. But if you are willing to do what’s hard, life will be easy.
These points are correct, but usually only work in bull markets. Business owners and investors in real estate and stocks go broke along with everyone else when a major recession hits. The savviest of investors might avoid it, but many won't. Investors will, however, maintain a fair amount of purchasing power even if their stock and real estate investments collapse in value, assuming there is widespread and concurrent deflation, and assuming they were properly diversified (didn't invest in one or two companies that went belly up).
I disagree with Gasun on a couple of things to some degree but the main reason I decided to comment here is his view on owning home. Owning a home can be an asset if you do it properly. Unless you want to live in your parent's basement until they pass away and you inherit the place, you need to move out and put a roof over your head. The key is to buy a home that is going to cost you the same as or less than renting. Even if it costs you a little more monthly you are still ok. The point is that in the end, when you sell the property, you will get money out of it. When you move out of an apartment you get nothing. Wealthy people know this and you will never see a wealthy person renting property unless they are making money from it in some way. I won't get into too much detail on the how to do this here but if you are clever you will figure it out on your own.
One thing I want to point out is that the people who are 65+ that make up this demographic didn't know anything about wealth creation. For the most part, it was just not widely available information. People who are 65+ only knew what they learned at elementary school, what they learned in their career, and what neighbors and friends knew (which was not much more then they did, unless you were the 1%). I can imagine, with information like this widely available, with internet and what not, the percentage of broke will shift to the wealthy column, probably passing the "secure"
In order to be middle class, you need $85K-$120K per year. You need to invest that much in one year or more in order to feel the effects of your capital. Discipline is required for business or businesses.
I am an employee and I was looking to be in "S" quadrant but after watching this video I decided to be in "I" quadrant but my question is .. Could it be directly or I should go through each of those quadrants ?
The biggest misconception in this video is that you will not be rich if you're and employee. You definitely can be. I'm an employee and currently my net worth is about $100,000. 3 years ago it was below $0. I had no money in the bank, and I had some debt. 80% of my net worth comes from working as an employee, 20% from investments. And I'm totally fine making the same as the guy next to me, and the company taking the profit. Because I'm not working more than my coworkers, I'm not better than them. I'm aware that I don't have the skills necessary to move on to be self employed or a business owner. But I will still be wealthy, because what I am good at is to keep my expenses low.
I just stumbled upon this video, it's one of my first regarding financial investments. This is one of the top ten best videos I ever watched in my fine research about business investment and financial market. I will save this video and if I even stumble upon becoming one of the top 0.01% of billionaires "who controls the world" I will give you a billion dollars in gratitude for you.
You can be wealthy and not be a business owner.... it all depends on what your definition of wealthy is...... if wealthy means multi-millionaire than yea you probably won't have multiple millions to lay in....... but if your definition of wealthy is being financially free, then anyone can become that with enough discipline and investing habits ..... when did wealthy become having millions??? You can have $500,000 in savings and be wealthy
This is a good video but a bit oversimplified. A lot of these statistics suggest that everyone is after wealth. I don't wish to be rich ever I will be satisfied with financial freedom (debt free and secure which I am). These examples also exclude divorce, injuries, chosen career paths, and other unforeseen events. For young adults this is an excellent video and hopefully you will build upon this knowledge in future videos.
I'm still working, bc it keeps my brain alive. When you're an entrepreneur, you don't have a boss - you have a thousand bosses and you have to kiss up a lot more. When you own rentals, your bosses are those renters and the appliances, carpets and paint they ruin. But you're spot on, those right quadrants are the right place to be.
Hi Bridget, That is beyond my knowledge. I am at the process if maxing out my 401k. I haven't maxed it out yet. It will take me several more years. Maxed out it will make me a millionaire in ten years. Dave Ramsey, even though I don't agree with his being obscenely rich teachings, had an app called Every Dollar, that is free. The app recommends advisors in your area that have the heart of a teacher. If they are endorsed by Dave, they are gonna point you in the right direction. Congratulations, you are further along in the journey to " owning yourself" than I am. Blessings.
Live beneath your means. Drive cheap used cars. Live in cheap houses in an older part of town. Save as much as you can via Roth IRAs and 401ks. Invest your retirement savings in a mutual fund indexed to the USA stock market. Stick to this strategy for 40 years, and you can expect to be worth 1M+. Once you are an empty nester, save more via taxable holdings; if you and your spouse make less than 100K/year, the part of that 100K made up of taxable dividends and capital gains will be effectively untaxed. All this can be hard to do while paying a mortgage. When you do retire, downsize your house and invest the capital gain in taxable mutual funds. By sticking to this strategy for two consecutive generations, a dynastic family should attain financial independence.
I totally believe in buying assets, but I disagree about education. There is so much free education available if you want to learn stuff that will make you money. Kids today get out of college with hundreds of thousands of debt. If you pay as you go, that is one thing, but most do not do that. The other thing is you must spend less than you earn period.
Good info. However i can challenge you on your example of an investor, if put a million dollars in the bank to get interest per month, this system as juicy as it sounds will screw you up at the end reason being that money losses value with time, your million dollars within 5 to 10 years will continue to depreciate in value meaning it can't afford something it would afforded 10 years ago and your intrest doesnt increase either unless you increase your initial capital. The best way is to invest in an appreciating asset like rentals or a business as much as youre hating on businesses , they appreciate in value meaning if you sell a service 10 years to come that service will cost more it moves with the economy. Anyway nice video.
I see what your saying but if you added that 10% to your initial 1 mil then your capital will continuously increase meaning you make more the next year. and as long as your interest is above the devaluing of your money your will continue to make more.
Inflation, which is what you are referring to are only 1-2% yearly and in a bank savings account that is mostly what you will get in interest for that exact same reason.. So that you can save and not lose purchasing power over time. Still saving is not a very good rate of return so investing is really just about getting a higher rate of return elsewhere. I will use real estate for rent out and stocks and bonds for myself.
And as a general tip from me to you: Don't count on appreciation. Reason for that is because you have no control over it. Appreciation is mostly caused by EXTERNAL factors, which means factors you have no direct control over.. The general economic situation of your country mostly dictates this and since you have no control over that situation you should never invest based on it. If you do, that is called taking a high risk because as i explained it is an external out of your control factor. You might aswell bet at the racetrack because that is controlled by external factors that you also dont have any control over. You can hope and pray but that won´t minimize risk.
I would like to add a few notes, that the quadrants referred in the presentation represent the "majority" and concept of that quadrant's activities. An employee is one referred as those who get a W-2 at the end of the year, self employed might get a 1099 and sometimes W-2. Those in the self employed quadrant are needed basically daily in the business or said business would decline. Those in the "business owner" are not needed daily and when absent the business tends to improve. Those in the "investor" field are usually lending their money, an example is a 401k investing into someone's fix/flip (prohibited to invest in your own fix/flip). People can be in more than one quadrant at a time (and all 4), not meant to be dictionary definition (or what you think it is) and meant to show a trait of the majority of said (ie. "employee" is one with a traditional W-2 job). The example shown talked about McDonald's franchise, if you're the one who is franchisee you're in the "business owner" AND "self employed" quadrant AT THE SAME TIME. McDonald's as the franchiser is solely in the "business owner" quadrant, by merely passing on their rules and wholesaling concept (for a said price)....so be careful how you understand that. Really wasn't explained what "investor" quadrant looks like either (consider not glossing over that), an example is....when lending your retirement at a defined rate for concepts (real estate, precious metals, cryptocurrency, etc.) based on IRS law. Don't confuse rule of your plan (your work's 401k invests only in certain investments...normally stocks), with rule of the law (IRS code is much larger on what you can invest your 401k in).
How can I get over to the B quadrant because I'm 20 years old and the bank won't lend me enough money to buy my first property so I can rent this out for tenants. The bank won't lend me money because I don't have a great track record and because I'm 20, the bank and venture capitalists see me as a liability because I won't be able to pay them back the loan. So what can I do to become and investor / business owner? I'm learning all the time by reading books from mentors like Will Durant, Steve Jobs, Jeff Bezos and Conrad Hilton and I'm really interested in business and I know what to do, the problem is that I don't have enough money to start doing what I want to do which is buying real estate and renting it out for tenants to give me an asset
Hi am in the same situation amd i am 42!So i decided to start a network marketing business to get the cash follow to start realstate businessI choose Amway to work with!www.amway.pt/user/telmo_parreira
Ewan Hobbs Keep in mind that the money you are trying to get from the bank does not exist, and they will charge interests every year. If you get 1 million dollars at 5% interest a year, and rent the house for 50 thousand a year, that will take you 20 years to pay back the bank if they did not charge interests, but since they do, you will be going into the world of unpayable debt. The banks know you will not be able to pay them back with this strategy you have in mind, if you had assets they would loan you money just to confiscate your assets.
Ewan Hobbs get an education. A real one not just a bunch of seminars that give knowledge. Would you prefer to lend to a twenty year old with an associate's or a twenty year old with a master's. The higher your degree, the more likely you'll get approved for lower interest loans. even if you've been bankrupt multiple times. learn to create entities that are financially and legally separate from yourself, so if things go south they go bankrupt, not you, and they don't affect your other entities.
If you don't mention investing in gold and silver, I don't want to hear what you have to say, everyone, yall do a search here for physical silver investing
Good rehash of Robert Kiyosaki's principals.The only thing I didn't like was how much he pushed being a business owner. Sure most are wealthy but it ignores that for every successful multi-million dollar company there will be a dozen that fail. IMO if the average young American has their heart set on breaking out of the middle class and becoming wealth their best odds are to focus on a high paying career such as Doctor, Dentist, Pharmacist lawyer, Engineer, etc... and combine that with a modest life style and they will without a doubt become a millionaire.
Hello would i need a headquarters in order to start a holding company? I found out that holding companies can give their owners significant advantages. I plan on start a jewelry business within the next month, I am currently unemployed and i am working with my income tax returns. Thank You
Here in Canada 1 million dollars does not bring you one hundred thousand dollars, 10 000 is the actual number. And also as a business owner the more you make the more they take , government taxes lingering at 50 percent. I have been running for 50 years and that's my reality. Maybe in the USA it's different.
I disagree with the notion that being an employee means you will never have wealth. If you live below your means and make smart investments, you can build wealth. It will just take a while.
TheRosswise that's pretty much what he said. It will take a long time
+TheRosswise Agreed, I got a good start while my wife and I worked for companies and we saved prodigiously & invested. The part I disagree with is the claim that you need to own a franchise biz - that's crazy-talk.
Franchises are expensive, have risk, require retail biz-skills , and require a LOT of time to manage & operate. If you have some investment money and no great job skills, then a franchise may make sense. If you are wealthy and can hire someone t manage the franchise(s) then it makes sense. It makes no sense for a well paid engineer or SW developer or doctor to spend his time overseeing a Starbucks or McD; that's opportunity cost. Better off learning to invest that money in stocks.
Yeah Brian Green, sounds like you are trying to sell something that may not be on the up-and-up. Shame that a run-of-the-mill S&P Index Fund does everything you are pitching, at a higher average rate of return. And the best part is nobody has to pay you anything to get the knowledge on how to invest in one.
+Brian Green
>>People don't get it. A 3% average rate of return in the stock market won't make you rich.
YOU don't just get it. The total S&P return for the past 50% years is 7% annually - not 3%. You can replace your entire income by investing 20% of income every year for 25yrs w/ reinvestment. At that pt you are relatively wealthy AND have a serious income stream.
>>Unless you know more than inside traders, you're at the whim of market volatility.
That's short-term thinking and not relevant to a LT investor. Yeah it took ~5yrs for the S&P500 to hit a new peak after 2007, but that was a great time to invest, more. Anyone who stayed invested from pre-crash is doing fine.
>>And when you do have a profit the government comes along and wants their share in taxes(after allowing the federal reserve to print like crazy and devalue or create rampant inflation).
Right, government takes a big bit all along the way, but LT cap gains and dividends are taxed at a lower rate than your earned income. Further you can defer the taxation by investing on one of the government sanctioned retirement schemes. That allows your capital to grow faster.
The Gov has printed like crazy, but all the inflation has been in government bonds due to bank regs (Gov bonds are a very poor investment IMO).
>>Try a safer approach to retirement which gets in average 7-8%, tax free growth and tax free distribution. An average person can create a million dollar retirement, the sooner they start the better of course.
Roth IRA, else foreign covers of dubious legality. But high-earners can't contribute to a Roth, and the max is $5500/6500/yr - too low IMO. Roths are a great first step but it would take 31yrs of adding $5500 at 8% to reach $1mill in savings, and even then it's only throwing off 8% ($82k/yr in income). If the next 31yrs inflation is like the last 31yrs - that Roth will throw off the equivalent of $42.5k/yr; nice income but nothing to write home about. Anyway your 8% isn't realistic, unless you accept higher risk.
Nah ! You need to invest more income that that for most ppl. Saving ~20% of income takes discipline and willingness to live below your means. Pays off in the long run.
>>It may take a different look at how money works for you now. I have free videos that explains this money alternative. Ask and thou shall receive the links.
Anyone serious should be reading AAII journal, Morningstar, Hulbert - and understand the concept of risk adjusted return - not listening to youtube trolls.
+TheRosswise I totally agree. My wife is an employee and she has amassed a sizable nest egg. (However, my wardrobe is a lot nicer!)
I find wealth is relative to what you consider to be your level of happiness. I find people with less “things” tend to be happier but would not be considered wealthy whereas people with monetary wealth tend to be busy looking for the next best source of income to keep up with their lifestyles but aren’t truly happy. We are raised to be consumers and are constantly trying to live “up to” what we perceive to be happiness with wealth. Stop the endless cycle and find happiness with what you have not what you want and enjoy life while you have it to enjoy.
They don't teach financial education to kids at school.
keep the poor broke, and the rich prosperous.
Here's some tips for becoming successful.
1) Take control of your own health.
2) Learn about the power of your mind.
3) Follow the path of people who have already done what you plan to do.
I found these tips from the Magic Progress Shortcut (check it out on google) definately the most useful course on becoming wealthy & successful that I've seen.
+Haris Sarvan how you benefited from the book
Yep , i guess its best to keep the herd in ignorance and confusion.. That way you can more easily manipulate them in the news about stock prices rising or falling blah blah or housing market booming blah blah, about how you absolutely NEED that new Iphone that is gonna cost you thousands.. You know, its best if people are kind of clueless.
By the way.. Im very sad to see it but my own sister came to me yesterday and told me how they had now bought a BRAND NEW CAR and that they needed to pay off a consumer loan first so that they could be allowed to buy a house............ I was like..... Now i understand how people go broke and stay in the hamster wheel ha ha... I mean, i have plenty of examples like this from just people around me spending money and acquiring only bad debt upon more bad debt AND THEY NEVER ASK QUESTIONS IF THAT IS EVEN THE BEST WAY TO RUN THEIR OWN PERSONAL ECONOMY :D All they seem to think about and know is how they can be allowed to accumulate more bad debt and get more liabilities that they dont really even know why they want.. Im on one side VERY HAPPY i found the truth but at the other side im very sad that people close to me, family and friends are burying themselves slowly.
This guy is deep inside an MLM system
darealpapac to arh
Whatever he has said here doesn't point to any MLM scheme. If anything - he has said what other like Robert Kiyosaki have been preaching for decades.
This is the first video I saw of his, but I would bet cash money that if you go to his site he's selling one or more network marketing "opportunities". I've never seen one of those that wasn't a pyramid scheme.
WildNights They're not all pyramid schemes. Be careful that your skepticism doesn't cost you an opportunity that could positively change your life financially. I personally know many that wouldn't listen to me when I tried to show them a *real* business that they could have used to improve their financial situation. Today, those same people are no better off. And in some cases, doing worse. ALL THANKS TO SKEPTICISM.
So many don't realize ALL corporate run franchise businesses are of the B quadrant, and they are all around us. Ironically enough however, people NEVER criticise "pyramid" franchises such as Pizza Hut, Papa Johns, Best Buy, Subway, Burger King, Verizon, etc. They instead eagerly spend all their hard earned income supporting these pyramids. 🤔 Corporate operated stores are essentially just "copies" - or distribution channels- of an original *SELLING* franchise that pays a percentage to the original owner. THAT'S WHY THEY'RE RICH!! The owners earn enough income off the copies that they don't need to work. It's a brilliant thought process!!
Question: Would you rather earn on 100% of your own efforts in a day, *or* would you rather earn 1% on the efforts of 100 people?
A *legit* home based business operates the same way, except there are no employees. I can't speak for all home based businesses, but mine follows a duplicable system for success. We also deal in relevant products that solve real world problems. I assume you're not in the B quadrant, bcuz otherwise you wouldn't be criticizing so hard. Personally, I'd rather be rich because I was curious, rather than be broke because I was skeptical. If you work a job (J.ust O.ver B.roke), you probably don't know the concept of P.rofits O.ver W.ages E.quals R.evenue. As the acronym suggests, there's much financial power possible in developing a *legit* business. That includes a home based business with a *system* in place and *in demand products that people want because they work*. Only a system (B quadrant)system allows your income to grow exponentially, rather than you getting paid base in the time you alone put in. Income based on time severely limits earning efforts. The key is to be able to earn income beyond your own efforts. The trick is to identify the real business from the scams.
I hope this helps clear up any confusion about pyramid schemes. ☺
Vance Edwards II That whole wall of text is the same bullshit spiel that every pyramid scheme uses to sucker desperate morons. It's pathetic. All you have to do is ask yourself one thing: Would I buy the core product of this MLM if it was on a shelf at a store? The answer is *always* "no". That's why the manufacturer isn't selling it in stores! They're trying to sucker people with their *payout scheme* and a bunch of empty platitudes. You're damn right I'm skeptical. Skeptical people don't give their money to thieves in exchange for false hope. Pyramid schemes *only* profit the people at the top, and the people at the top are sociopaths.
Half the men have lost their money when their wife divorced them and stole all their resources.
Bob Amato
The other half?
I have had the fortune to come from a family that, at one time, edged into that group most would consider rich, only to lose that position by adopting the mindset that they had finally "made it". Financial literacy is an ongoing process that must be adapted to every step on the ladder up. Failure to adapt will lead to the loss of amassed wealth in far shorter time than it took to make it. We are fortunate to live in a country where it is possible to become exceptionally wealthy by pursuing almost any career. All that is required is the discipline to consistently arrange finances towards the goal of financial security. This is very difficult to do given the 24/7 bombardment of a culture advocating debt slavery.
Buying assets is a good thing to do, but don't lever up too much to do it. Problem with Robert Kiosaki is that he advocates levering up to buy things like real estate. That's fine but what happens if the rental income drops quite a bit and can't support the loan required to buy the asset? Look how many landlords that went bankrupt in 2007-2009? If you've been to his seminars you know that he (or really one of his speakers) plays on greed. Use leverage with caution! In the presentation he wanted people to buy assets with credit cards! That's insane. Whatever your income, people should put some money aside so that they can have an income stream in retirement, but spending a life chasing after money is a fool's errand. Don't do it, in the end it counts for nothing anyway. Enjoy life a bit. What is a waste is someone who has been so miserly to amass a huge fortune but having done nothing in life. Of course spending everything for the here and now is equally foolish. So, it seems to me the key is finding the right balance.
Eric D Fantastic line of thought
I00% AGREED. I like Robert Kiyosaki's concepts as well. But noticed as you did his over-willingness to go into debt to buy assets. This could have someone spending just as much time running from debt collectors as they spend chasing assets if those assets under-perform. Truly, the key here is BALANCE. A balanced life will leave you some time to enjoy it along the way as you run your race. If you spend all your time on the money wheel, you could end up missing out on some of life's other treasures.
347elmer Well said.
Well for your example of the landlords in 2007-2009, it was different because most people who went brankrupt, they were spectulating. That is NOT investing, that is gambling. For assets, it really depends on what you buy. If you compared a real estate in the middle of no where and a real estate in a good location like NYC. The value of the real estate in NYC continue to grow even when the financial crisis hit.
Eric D
House is a liability under that definition but if you have no house you might spend even more. Could there be a definition for such item you invest in to avoid to spend more?
Did you take this information from Robert Kiyosaki?
I loved this video! You're a great teacher and I learned a lot from the information you presented regarding income, expenses, assets and liabilities. However, please note that Ray Crok is not the founder of McDonald's. The founders are Richard and Maurice McDonald, and they started the business in 1940. Ray Crok did innovate the franchise model, to your point. As an entrepreneur who has started ventures that others attempted to co-opt, the issue of naming the original co-founder is important to me.
Unlike STUFF, property is finite. They aren't making any more land, Yes, it can drop in value but never stays there. You make your money when you buy it. I have owned property for the last 60 years and am very pleased with the cash flow I have built. I live in a 1500 SF SFH that was built in 1984 and own rentals that are much nicer than mine but I have no payments except for some of the properties I rent and the renters are paying them off for me including the taxes, insurance and providing my cash flow. In addition to that I can deduct the expenses from other streams of income. They have all gone up in value over $100,000 each since they were purchased. What Gasun is saying is absolutely true. Stop buying STUFF. Save your money then start by buying SFH rentals then apartments and over the long term you must win!!! No one is saying it's easy. Only you can decide your future. Commitment is key.
Vic....you know your stuff....enough said.
The problem with buying assets than buying more assets with the income from the assets, is it can take 5 to 10 years to have income you can actually use on more assets and live on. If you are planning to be a millionaire it will probably take you all your life so you won't enjoy the money when you are young. The assets are really for your children or grandchildren and that work you did for 50+ years they can blow it in 5 years because they don't know the struggle or work. They will probably sell all your assets and waste it in expensive cars,homes, and luxurious things.
Your example of the investor sound nice but Where can I get 10% interest? Not gona happen in a bank like you described
Appreciate your concern, and attitude for taking the action. Nowadays, there are multiple ways you can generate 10% interest on your investment. Look for low-risk mutual funds to deal with your money. Also, nowadays, there are companies, which do bring you an interest of 50-70% a year. (recent company I am following) |Tough, if the company would go down, the money would be lost. Preferably, in your position, Mutual Funds will be a solution
I am a fan of index funds, but you can't expect a constant 10% return on those either. Anyways at least we all agree that his example of earning 10% from a bank was extremely unrealistic
dublindietrite moadudicriding
dublindietrite i know something. email me. j_ayers25@yahoo.com
Wealth isn't built primarily from returns. It's built primarily from saving (not spending) income you've earned. The returns are just the icing on the cake.
THE MILLIONAIRE NEXT DOOR is also a very good book. Two college profs. interviewed all of the millionaires that they could in this country. Most of the millionaires in this country are small business owners who invest the excess income that they can't use by plowing it back into the company into stocks and then ignoring them because they are too busy to pay much attention to them.
The authors don't tell you how to invest your money, they tell you how to avoid the mistakes that keep you from becoming a millionaire.
I have made 500k and am unemployed on the stockmarkets starting with a few thousand.
Steven Larratt write a quick guide and publish on Amazon with a disclaimer on how you did it for the rest of us. That would be awesome! Then come back here and share the title...
@@tarshun You will be waiting.....a long time.
As you said, 9 out of 10 businesses go bankrupt in the first 5 years and getting into a franchise only increases your probability of success. This is a great topic for a follow-up video, as well as how much money (usually quite a lot, like a few years' average net salary) to actually get into a franchise.
Is this his video notes on the Cashflow Quadrant?
Yes we have to truly become balanced internally and make sure that we are committed to our goals and to our visions! We have all the power within us! Sending love, happiness and peace to everyone! 🙏
Its hard to save and invest if all the money one makes has to go on bills and debt. And keeping all the bills paid on time means that person is a good money manager.
So true. Not everyone has discretionary income left after necessities, bills, debt.
Apply the 70/20/10 rule to your income. 70% to expenses (food cloths housing costs)- 20% to debts (credit cards ect..)- and 10% put to savings/investments. It starts slow, but it will grow.
read "the richest man in Babylon"
Hello Mr.Simon. You asked we leave you a comment. I found all your information objectively valuable. Thank you.
Respectfully sir, I wanted to share with you a few remarks. I coined it "The Law of One One Ten" whereby the 1 tenth, of the one tenth, of the 1 tenth represent the super elite. Though nothing can be said to be certain, it is more accurate to say 0.001% can only flourish because the 99.999% consumers cannot. In simple essence, financial freedom for the select comes at the price of financial destitution for the rest. This is an inescapable universal truth. It was the case for the Egyptian economy, the Judea economy, the Roman economy. It is not to be negative or wage a moral or opinionated argument that I share this. MLM's are part of a greater system, and this greater system has established laws to ensure orderly function.
Invariably, it is noteworthy to kindly mention sir, that the statistic you provided is slightly inaccurate save for the 1% figure, which is actually closer to 0.001%. Consider this: out of 7.442 billion people (2016), less than 100,000 people are part of the ruling elite. 1% would actually roughly represent 70.4 million who are the wealthy ruling elite (right side of the quadrant). Respectfully, this is an over simplification and statistically false or inflated at best, and I urge you to state your information from any quantified, certified and sourced data.
After a decade of research, that I know of with factual evidence, the majority of economist now agree that the existence of no more than 100,000 individuals control the entirety of the global economy.
I would like to contribute by kindly directing your attention at other works on economic classes of the U.S. and hope you gain valuable insight.
Source: Gilbert, Dennis and Joseph A. Khal " The American Class Structure: A New Synthesis" 4th edition.
Graciously and earnestly,
The Man in the Iron Mask
Please refer to sources when presenting statistics!
wow, more money coming in than going out makes you wealth. this guy is so smart
I like the way you didnt really know the guy that wrote that book
ggoooood video
This video is direct and simple. This should be used as a teaching aid for all 8th graders and as a final quiz prior to 12th grade graduation. So sad our children graduate with no working knowledge of this information.
great explanation and illustration.i will share your video and I have been applying these concepts for about 1year now . I am make small leaps and now I am self employed. I also have one active investment and one passive investment. I will keep on building.
thank you for the feedback. I am just starting it.
A great and easy to understand video. He makes his case using things that we have all had a basic education on, Income Statement and Balance Sheet. He uses some real life people and statistics to make his point, in conjunction with the two statements. His talk is clearly defined in the beginning. His message is a complete package, from the beginning to the end.
Rich dad poor dad regurgitated
I went to work abroad and to do missionary work. . .was thinking of plan "A", but it didn't work out so now I'm onto plan "B" - considering retirement options is part of that plan.
All these things start from the premise that you have the disposable income to buy assets. It's all bullshit. If you don't start off rich, your odds of becoming rich approach nil. Your odds of becoming rich by starting a business aren't quite as bad as your odds of becoming rich by becoming a professional athlete, movie star, or rock star, but they are still quite low. He even admits in the video that 9/10 businesses will fail in the first five years, but what he doesn't mention is that even of those that survive, 9/10 will be making less than $100K a year. That's not exactly rich, and for the balance, you're looking at a success rate that is already down to just 1%. And these are the people who had at least some disposable income to get started! If you read the histories of successful entrepreneurs, you'll find every one of them had some lucky break that catapulted them to success, a lucky break YOU can't engineer for yourself. A sobering story is the history of Milton (the milk chocolate guy) Hershey's father. He was an entrepreneur who started 17 businesses in his lifetime, and failed every time. Nassim Nicholas Taleb, in Fooled By Randomness, talks about survivor bias, the tendency to evaluate successes independently of failures, which is essentially the mistake everyone makes when it comes to taking advice from the rich and successful. No one mentions or compares what the failures did to see how much chance, luck, and factors outside the control of the entrepreneur had to do with the entrepreneur's final result.
This answer should have more thumb-ups, but I can only give one. Survivor bias is such an important notion that everyone should learn. The winner's story shines more, so more people listen to it, but we often ignore the dozens of failures that happened in the same time frame. If everyone won all the time at the same time, it would break the laws of mathematics, because resources and money are in finite quantities at any given time.
Actually the do talk about failures. A lot of them. Because that's what made them successful today. Without all that valuable experiences gained from past failures, they will not be the men/women they are today.
Sure, but at any given time, individual people fail a lot and we don't hear about them. As I said earlier, not everyone can be rich *at the same time* .
I agree 100%... and notice one other thing... how many of these "youtubers" talk about financial success concerning what the rich do... but somehow are not rich themselves using the same techniques? Its all a game, the successful simply got lucky with a skill. Rich RUclipsrs got lucky by being first and building a following, get paid by advertising and affiliation... not by selling the crap techniques they talk about. Successful youtubers then use the money they made to buy assets outside of youtube, make money with them, then get back onto youtube and talk about it reinforcing the youtube channel and building it further. A cycle few get lucky with and tens of thousands try and fail.... just look to the right on your screen and click "show more" if you have any doubts...
This guy is easy listening and easy to follow. I learnt something easy and quickly.
You cannot save your way to wealth.
I partly agree with this. You can save, but you have to do this outside of fiat currencies and instead preserve your savings against inflation which is a hidden tax. For example, if somebody born in the 1940's or 1950's converted only 5-10% of their net worth in savings and converted to gold and or silver coins etc. it would be worth millions by today's inflation even though gold and silver have purposely been manipulated by the banks on Wall Street for many years. It's called "Naked Shorting the Markets." The problem is the federal reserve system or the central bank devaluing all the fiat currencies. For a better understanding of what I'm talking about, please watch "The Biggest Scam In the History of Mankind" by Mike Maloney or his other series "Money Vs. Currency." You can also see "The Creature From Jekyll Island" by G. Edward Griffin along with "Century of Enslavement: History of the Federal Reserve" by James Corbett. By the way, keep in mind the pre-1965 coins were 90% silver and the United States was on the gold standard until August 15, 1971, when Nixon took the nation off the gold standard. Again, it goes back to the federal reserve act of 1913 and the meeting on Jekyll Island in 1910 and the banking panic of 1907.
And even if you do, you won't live long enough to enjoy it.
Stephen Street yes this idea is rich people advise advocating and saying live below means to save but the thing these wealthy people or rich people advisers cant understand is ...you cant begin to live below means because many already are and they have nothing left to save or invest ...most pay for necessity items to live and that gives zero dollars left ..to invest ...
Thank you! I'm stuck in the E quadrant and sick of it! Thinking of getting educated, but at 31, I think my time would be better spent in the B. Great video...just what I needed! Subbed.
Hi, I am very interested in network market. i need more information. your presentation touched me so much and i want to change my life.
I'm just curious did you find what you're looking for yet? I can appreciate that you want more from Life and would rather go after it than be negative & vindictive like a lot of people. I've been successful in business & "network marketing" and like it alot, but have to admit, most people struggle because sales & recruiting just isn't easy for them. And because traditional network marketing is very 1 dimensional (you can only make money if you sell/recruit) you can understand why the % of people who win is very small and the profession gets a bad rap.. If you're open, my wife & I found something I call the perfect answer to traditional NM. We help people financially through something called "Income Shifting".. Feel free to visit IMAGNLife.com/shift for info & call our office at 1.323.505.6066. All the best! - JB
My passive income surpassed my active income last year. How you earn it doesn’t matter. What you do with it is all that matters
is food a liability?
junk food obviously is :-)
good food in preventative health insurance i guess lol
Chazz Matazz Healthy food is an investment, as it helps reduce future healthcare cost.
KevZen2000 true in deed
only if you put it on a credit card you dont pay off monthly
Anybody can become wealthy who lives below their income and saves and invests the difference. It matters not whether you have a job, are self-employed, a business owner or investor. You must avoid most credit. Pay cash for most things and acquire income producing assets. Keep luxuries like vacations/traveling, expensive cars and other consumer goods to a bare minimum until later in life when you have more money and hopefully own your own home free and clear. Without a mortgage payment you need very little to live on.
Poor dad
Rich dad 💰
What is the difference between having a mortgage (liability) versus investing in real estate (asset)?
STUDY THE BIBLE ..... God's Word tells you how to be WEALTHY .... God's Way !!!! Godly Men and Women WHO SERVE GOD and OBEY HIM ..... CREATE WEALTH & ARE PROSPEROUS .... BECAUSE THEY ARE GIVERS !!! IGNORANCE creates RELIANCE ON OTHERS. WISDOM creates RELIANCE ON GOD. BIG DIFFERENCE.
I would agree with you...the more I give....the more that seems to come my way.
First video ive come across from your channel, I saved it liked it and will continue to watch it because of how thorough it is. Probably should link to your blog somewhere here
But how does a poor person invest its money? By assets? They're poor!
ZC94601 well even the rich started with nothing so easy you do the same start a budget and so forth.
No, most rich people start with something they inherit.
The ideal model is to be self employed have successful people all around you or a mentor that can help you along with your dream and never give up
everybody can't be rich it is impossible because we live in a finite world.
it's possible for individuals to get rich because, capitalism is competition
and all competitions there are winners and losers and it is the winners that Keep the Spoils of the losers.
in competition it is the most powerful it is the winners, has nothing to do with hard work or skill, it has only to do with who controls the money.
the people at the top are always the people who control the money.
the people at the top make the rules the rest of us must live by every economic system is completely controlled by the top.
i disagree...
if i can fix computers, and you can make food. we have an endless amount of wealth we make for each other. money is just a middle man in everything.
You can take your "finite planet" nonsense elsewhere. You'll see when we start colonizing mars and discover new minerals from deep underground. Then we'll see if we really are in a "finite" planet.
***** understanding computers as you do, are Rare Earth elements supplies not a wake-up call to the scarcity of elements?
Kas Katari when the world runs out of things like platinum and gold and other "required" metals, a new solution will be made or found.
always has and always will. Provided we have a type of free market.
***** no need to look for another solution
We already have one.
It's called basic math and Common Sense.
Basic math tells us how many resources we have
Common Sense tells you not to use more than we can recycle.
Save 2500.00. Then get a 2500.00 loan from your bank or credit union. The interest rate should be lower because it is collateralized with the money in the savings account (you can't spend the money in the savings account until you pay off the loan). Use the loan money to buy dividend paying stocks such as (not telling you to buy this stock specifically just as an example) CIM, which pays a .50 cent dividend on each share. When you have payed off the loan you have established good credit for yourself while collecting dividends. If you are able to add to your savings while doing this process you can repeat it at a higher level next time, maybe with 3000.00 this time. Or if not, repeat it with 2500.00 again.
New cars draining your wealth
and chicks!! Cute ones
I am already an investor and self employed independent contractor. Loving it.
90% of businesses lose money. 70% of investments lose money. 60% of education is a waste of time. 100% of luck works every time.
Ok captain!
Never learn to write, never learn to read, never learn to catch fish.
Then let's see how you will capitalize on all the luck destiny brings across your way.
stevo728822 Haha, but luck happens 1% of the time
what a load of shit.
I feel 100% lucky, 50% of the time.
not a single person in earth became rich without selling something !
Agree with "anonygent" below. these "get rich guys" have no sure fire way of getting rich other than selling you a "system" promising you riches. There are three ways to get rich, 1) marry into wealthy families, 2) Luck, 3) start with money.
Just looked up "Network Marketing". It's the same thing as a pyramid scam. Lol
Yes it is :) and it looks bad if you know math too :D If 5 people works under you and they have 5 that works under them and all goes on and on it is just 30 +- cycles until you run out of all earth population :D
It is the same structure as a job, except the selling is done people to people. It gives poeple the opportunity to become wealthy, but the chances are slim. However, not everyone is in it for the wealth, some people would just like an extra 300-500 dollars a month for food, investments, or just to go on a nice vacation. Everyone has different goals in network marketing, so it is not an end all be all solution to problems.
The fact that you think an MLM is a pyramid just shows how you are not educated. In an MLM, you are an owner with leverage. At a job you have no leverage. You need to leverage your time. That's what the owner of the business you work at has done. He has leveraged his time and duplicated himself in you. The business owner has an override on you. That's what every business owner in the world has on their employees. You need to be an owner with leverage to get ahead. An MLM makes you an owner with no overhead or expenses. It's actually a better business model.
That would be a Ponzi scheme, which IS a scam and therefore illegal. Network marketing is a business model, that's it. It's not for everybody, just like being a dentist is not for everybody. I suggest you open your mind.
Master degree in finances and what is yours?
What did software to you use to present your information? I am specifically interested in how you did the picture in picture presentation.
I buy drugs and then sell them at a 25% markup.
Jason O That's a pretty good margin
thats nice I just brang in half an oze today
You're the man!
Is that all?
my monthly income is USD 6500& my expense is 3950 USD.. the remaining is invested in various asset classes.. I'm a salaried employee.
thumbs up if you broke and know it can't change because inherent flaws in our monetary systems
Yes, your monetary system is based on debt. Anybody interested can watch the entire 3 part series of "Money as Debt" along with "The Biggest Scam In the History of Mankind" by Mike Maloney along with his other series of "Money Vs. Currency."
thumbs up
they don't teach how money works in school. it's like going to a futbol game and only knowing the rules to horse shoes. 99% of the people do not know the rules. even worse, with the internet right in front of them they play games in social garbage sites. they don't know what they don't know.
What do you think about becoming a financial advisor? Is it a good starting point?
Don't want to be wealthy, just comfortable. It will be easier for a camel to pass through a straw of hay than a rich man to make it to heaven.
LucasG but you could make money to help other people
+Jacob Kuba I just want to sit on my stinky couch eat Cheetos and jack off all day. Jesus will forgive me I hope.
masturbation is a lonely business,fellatio performed by a large breasted woman I believe would be much better.
One thing I know is that I could never stop. I couldn't even just slow it down, as higher as I get the faster I wanna go.
The saying is "It is easier for a camel to pass through the eye of a needle, than for a rich man to make it to heaven".
It's a hard concept for people to invest into assets instead of just bills, etc... but it'll make one of the biggest change in your life. Invest in Assets that will eventually return that money at a consistent rate. Great advice.
C.COPY ROBERT KUYO SUKI
My Dad wasn't a millionaire as a Engineer business owner . Untill he sold his business after working 7 days a week 35 yrs . Untill he paid off his mortgages he was now are multi millionaire
You want to know the real reason why the poor and middle class won't be wealthy ? The poor realise the struggle of being poor and they are more likely to donate to a charity to help the poor. The have empathy for life's struggles. Middle class are the blue collar workers whom work hard to make an honest living. Wealthy take from the poor, middle class and charge interest. Wealthy charge fees and fines to the poor and middle class. If fines are not paid they charge more interest and threaten to destroy credit. They then threaten legal action if fines are not paid. Long story short, wealthy charge fees and interest and take money they don't earn. Wealthy don't have to work hard and just let the poor and middle class do their work for as low pay as possible so they can get larger profit. Wealthy make money they don't earn but take by force.
I think there is some truth to your reply but I also feel you may have missed the message of the video. There is nothing morally wrong with this concept of acquiring assets and owning businesses. If it wasn't for business owners and investors only government employees would have jobs. Make a decision today to use your money to buy assets and replace your job income with asset income!
So True.
exactly the reason is the intrest rate is actually abusing the burrower
Jay Silva poor and middle class pay for the lack of knowledge what rich has, it's not rich people's problem rather it's fault of poor and middle class who refuse to change.
No Its about greed plain and simple because even if you earn a level of success the greedy will fight some way to take your earnings for nothing. Bullying even in the market place. To be honest the game is rigged !
Thank you. I learned a lot from this video. Thanks for sharing!
So your just plagiarising the teaching of "Rich Dad, Poor Dad"..... Not even very creative with the name Rich Grad.... LOL
@PeaNuts So after watching the video, what draws your attention is the false idea he's plagiarising Robert Kiyosaki? Really? Clearly, you don't know what the word means, or else you're lying. Let me fill you in ... "the practice of taking someone else's work or ideas and passing them off as one's own."
Business owners do not necessarily make more than employees and it could actually be a lot more work. Anyone can become an investor and add to their income. All you need to do is make sure your income is greater than your expenses and buy assets. I think that you should have two accounts. A lower-risk retirement fund so that if the market becomes chaotic your most important funds will be relatively safe and a shorter term higher risk fund which is for unused disposable income. In the past this was less feasible because of high trading commissions. Now with Robinhood you can trade for free. Yeah it's better to be an entrepenuer but its not for everyone and MCD franchises only pay the owner about 50k a year and require a million dollars of liquid capital to start.
The keys to getting rich by the time you retire? Defer gratification. Save money. Get a job with a company with good benefits, a defined benefit pension, and a 401k with matching. Invest in good companies for the long term - like Warren Buffet.
Doug P The problem with that is by then most of your life is over. The younger we are when we achieve wealth, the better off we are. I personally like the idea of leveraging my efforts now so I can retire early and enjoy both the time and money. I can only speak for myself tho. 🤔
The money you get from your investments come from someone else's pockets. This someone else is probably poor.
Yet to find a system where you put a certain amount of money in investment stocks or whatever than you get something monthly not yearly but monthly. Which is the best one for this?
This video is great. I grew up ridiculously poor and have worked my way into middle class (home owner with mortgage payments), payed off cars entirely, own two businesses in additon to working full time. However, I have something to add: you can still invest your time wisely as an employee. If you love travel and it can better your businesses, you can work for an airline to see the world/country. For nearly free education you can work for a college or university until you gain the connections and education to move into the wealthy category with no debts, and with sound investments. I agree with him that it's all about strategy and being smart with the resources you have. Even if you're just starting out, are in the poor category, wealth is absolutely attainable even if further from some. My channel listed here is my network marketing business and I also have a photography, graphic and web design company: I'm happy to help people realize and achieve their goals! I'm going through the steps myself
Thanks very informative from East Africa
Completely agree with everything you said, the only way to be time rich is to have either a business or investments working for you. The only thing I would add is that you can move from being an employee to being an investor rather than owning a business which can be risky, as you said 9 out of 10 businesses will fail within the first five years. I live in Perth western Australia where you can make 200k a year driving a dump truck in the mining industry as an employee. I know this isn't typical but if your smart it dosen't take long to accumulate the type of investments that will allow you to become financially free. I think the main thing for someone starting out is to move to an abundance type mindset as you said to allow yourself to recognise opportunities as they present themselves. And continued education is the key. Just don't get sucked into anyone that tells you internet marketing or starting any type of business is easy. Look at any great entrepreneur and you will find the common aspect is that they have all failed or come close to losing everything at least once. Perseverance and the willingness to do things that others wont is the key. If you are willing to do only what’s easy, life will be hard. But if you are willing to do what’s hard, life will be easy.
These points are correct, but usually only work in bull markets. Business owners and investors in real estate and stocks go broke along with everyone else when a major recession hits. The savviest of investors might avoid it, but many won't. Investors will, however, maintain a fair amount of purchasing power even if their stock and real estate investments collapse in value, assuming there is widespread and concurrent deflation, and assuming they were properly diversified (didn't invest in one or two companies that went belly up).
Nice article...excellent directions for people to follow including my self..... i now understand what has to be done to Get wealthy...!!! Thanks mate.
I disagree with Gasun on a couple of things to some degree but the main reason I decided to comment here is his view on owning home. Owning a home can be an asset if you do it properly. Unless you want to live in your parent's basement until they pass away and you inherit the place, you need to move out and put a roof over your head. The key is to buy a home that is going to cost you the same as or less than renting. Even if it costs you a little more monthly you are still ok. The point is that in the end, when you sell the property, you will get money out of it. When you move out of an apartment you get nothing. Wealthy people know this and you will never see a wealthy person renting property unless they are making money from it in some way. I won't get into too much detail on the how to do this here but if you are clever you will figure it out on your own.
From an economics perspective, this video is right on !
Really eye opener. The video teaching makes it easy to understand the financial circle. Thank you for the book to read tip. Brilliant!
One thing I want to point out is that the people who are 65+ that make up this demographic didn't know anything about wealth creation. For the most part, it was just not widely available information. People who are 65+ only knew what they learned at elementary school, what they learned in their career, and what neighbors and friends knew (which was not much more then they did, unless you were the 1%). I can imagine, with information like this widely available, with internet and what not, the percentage of broke will shift to the wealthy column, probably passing the "secure"
In order to be middle class, you need $85K-$120K per year. You need to invest that much in one year or more in order to feel the effects of your capital. Discipline is required for business or businesses.
I am an employee and I was looking to be in "S" quadrant but after watching this video I decided to be in "I" quadrant but my question is .. Could it be directly or I should go through each of those quadrants ?
If Im not wrong, wealthies don't spend in unnecessary things ? Then what could be a brief and well explained example?
The biggest misconception in this video is that you will not be rich if you're and employee. You definitely can be. I'm an employee and currently my net worth is about $100,000. 3 years ago it was below $0. I had no money in the bank, and I had some debt. 80% of my net worth comes from working as an employee, 20% from investments. And I'm totally fine making the same as the guy next to me, and the company taking the profit. Because I'm not working more than my coworkers, I'm not better than them. I'm aware that I don't have the skills necessary to move on to be self employed or a business owner. But I will still be wealthy, because what I am good at is to keep my expenses low.
I just stumbled upon this video, it's one of my first regarding financial investments. This is one of the top ten best videos I ever watched in my fine research about business investment and financial market. I will save this video and if I even stumble upon becoming one of the top 0.01% of billionaires "who controls the world" I will give you a billion dollars in gratitude for you.
I am interested in everything. The future, trending holds a lot of secrets and mysteries...
I must say you lecture has inspired me and given me courage to face some challenges preventing me from taking actions. Thanks
You can be wealthy and not be a business owner.... it all depends on what your definition of wealthy is...... if wealthy means multi-millionaire than yea you probably won't have multiple millions to lay in....... but if your definition of wealthy is being financially free, then anyone can become that with enough discipline and investing habits ..... when did wealthy become having millions??? You can have $500,000 in savings and be wealthy
When you invest to be financially "free", the money you gain from your investments must come from "non-free" people. Money does not grow on trees.
Slam Dunk ..... that's deep bro.....
This is a good video but a bit oversimplified. A lot of these statistics suggest that everyone is after wealth. I don't wish to be rich ever I will be satisfied with financial freedom (debt free and secure which I am). These examples also exclude divorce, injuries, chosen career paths, and other unforeseen events. For young adults this is an excellent video and hopefully you will build upon this knowledge in future videos.
I'm still working, bc it keeps my brain alive. When you're an entrepreneur, you don't have a boss - you have a thousand bosses and you have to kiss up a lot more. When you own rentals, your bosses are those renters and the appliances, carpets and paint they ruin. But you're spot on, those right quadrants are the right place to be.
Hi Bridget,
That is beyond my knowledge. I am at the process if maxing out my 401k. I haven't maxed it out yet. It will take me several more years. Maxed out it will make me a millionaire in ten years. Dave Ramsey, even though I don't agree with his being obscenely rich teachings, had an app called Every Dollar, that is free. The app recommends advisors in your area that have the heart of a teacher. If they are endorsed by Dave, they are gonna point you in the right direction. Congratulations, you are further along in the journey to " owning yourself" than I am. Blessings.
Thank you for making your video very easy to follow & understand.
Live beneath your means. Drive cheap used cars. Live in cheap houses in an older part of town. Save as much as you can via Roth IRAs and 401ks. Invest your retirement savings in a mutual fund indexed to the USA stock market. Stick to this strategy for 40 years, and you can expect to be worth 1M+. Once you are an empty nester, save more via taxable holdings; if you and your spouse make less than 100K/year, the part of that 100K made up of taxable dividends and capital gains will be effectively untaxed. All this can be hard to do while paying a mortgage. When you do retire, downsize your house and invest the capital gain in taxable mutual funds. By sticking to this strategy for two consecutive generations, a dynastic family should attain financial independence.
would business be a good major to be more educated in all of this?
I totally believe in buying assets, but I disagree about education. There is so much free education available if you want to learn stuff that will make you money. Kids today get out of college with hundreds of thousands of debt. If you pay as you go, that is one thing, but most do not do that. The other thing is you must spend less than you earn period.
Good info. However i can challenge you on your example of an investor, if put a million dollars in the bank to get interest per month, this system as juicy as it sounds will screw you up at the end reason being that money losses value with time, your million dollars within 5 to 10 years will continue to depreciate in value meaning it can't afford something it would afforded 10 years ago and your intrest doesnt increase either unless you increase your initial capital. The best way is to invest in an appreciating asset like rentals or a business as much as youre hating on businesses , they appreciate in value meaning if you sell a service 10 years to come that service will cost more it moves with the economy. Anyway nice video.
I see what your saying but if you added that 10% to your initial 1 mil then your capital will continuously increase meaning you make more the next year. and as long as your interest is above the devaluing of your money your will continue to make more.
Inflation, which is what you are referring to are only 1-2% yearly and in a bank savings account that is mostly what you will get in interest for that exact same reason.. So that you can save and not lose purchasing power over time. Still saving is not a very good rate of return so investing is really just about getting a higher rate of return elsewhere. I will use real estate for rent out and stocks and bonds for myself.
And as a general tip from me to you: Don't count on appreciation. Reason for that is because you have no control over it. Appreciation is mostly caused by EXTERNAL factors, which means factors you have no direct control over.. The general economic situation of your country mostly dictates this and since you have no control over that situation you should never invest based on it. If you do, that is called taking a high risk because as i explained it is an external out of your control factor. You might aswell bet at the racetrack because that is controlled by external factors that you also dont have any control over. You can hope and pray but that won´t minimize risk.
I would like to add a few notes, that the quadrants referred in the presentation represent the "majority" and concept of that quadrant's activities. An employee is one referred as those who get a W-2 at the end of the year, self employed might get a 1099 and sometimes W-2. Those in the self employed quadrant are needed basically daily in the business or said business would decline. Those in the "business owner" are not needed daily and when absent the business tends to improve. Those in the "investor" field are usually lending their money, an example is a 401k investing into someone's fix/flip (prohibited to invest in your own fix/flip).
People can be in more than one quadrant at a time (and all 4), not meant to be dictionary definition (or what you think it is) and meant to show a trait of the majority of said (ie. "employee" is one with a traditional W-2 job). The example shown talked about McDonald's franchise, if you're the one who is franchisee you're in the "business owner" AND "self employed" quadrant AT THE SAME TIME. McDonald's as the franchiser is solely in the "business owner" quadrant, by merely passing on their rules and wholesaling concept (for a said price)....so be careful how you understand that.
Really wasn't explained what "investor" quadrant looks like either (consider not glossing over that), an example is....when lending your retirement at a defined rate for concepts (real estate, precious metals, cryptocurrency, etc.) based on IRS law. Don't confuse rule of your plan (your work's 401k invests only in certain investments...normally stocks), with rule of the law (IRS code is much larger on what you can invest your 401k in).
thank you. I learn a lot from you. God bless you
Financially educated. That is the word and way.. Thanks for sharing a real eye opener...
awesome advice, thanks, it will help build my empire.
Thanks! I dream to be an entrepreneur. You've given me some direction. Thank you again!
people get so upset/angry about videos like these... yet still watch them.
How can I get over to the B quadrant because I'm 20 years old and the bank won't lend me enough money to buy my first property so I can rent this out for tenants. The bank won't lend me money because I don't have a great track record and because I'm 20, the bank and venture capitalists see me as a liability because I won't be able to pay them back the loan. So what can I do to become and investor / business owner?
I'm learning all the time by reading books from mentors like Will Durant, Steve Jobs, Jeff Bezos and Conrad Hilton and I'm really interested in business and I know what to do, the problem is that I don't have enough money to start doing what I want to do which is buying real estate and renting it out for tenants to give me an asset
Hi am in the same situation amd i am 42!So i decided to start a network marketing business to get the cash follow to start realstate businessI choose Amway to work with!www.amway.pt/user/telmo_parreira
Ewan Hobbs Keep in mind that the money you are trying to get from the bank does not exist, and they will charge interests every year.
If you get 1 million dollars at 5% interest a year, and rent the house for 50 thousand a year, that will take you 20 years to pay back the bank if they did not charge interests, but since they do, you will be going into the world of unpayable debt.
The banks know you will not be able to pay them back with this strategy you have in mind, if you had assets they would loan you money just to confiscate your assets.
Ewan Hobbs get an education. A real one not just a bunch of seminars that give knowledge.
Would you prefer to lend to a twenty year old with an associate's or a twenty year old with a master's. The higher your degree, the more likely you'll get approved for lower interest loans. even if you've been bankrupt multiple times. learn to create entities that are financially and legally separate from yourself, so if things go south they go bankrupt, not you, and they don't affect your other entities.
If you don't mention investing in gold and silver, I don't want to hear what you have to say, everyone, yall do a search here for physical silver investing
Is all this information taken from the rich dad, poor dad series it looks very similar?
Good rehash of Robert Kiyosaki's principals.The only thing I didn't like was how much he pushed being a business owner. Sure most are wealthy but it ignores that for every successful multi-million dollar company there will be a dozen that fail. IMO if the average young American has their heart set on breaking out of the middle class and becoming wealth their best odds are to focus on a high paying career such as Doctor, Dentist, Pharmacist lawyer, Engineer, etc... and combine that with a modest life style and they will without a doubt become a millionaire.
Hello would i need a headquarters in order to start a holding company? I found out that holding companies can give their owners significant advantages. I plan on start a jewelry business within the next month, I am currently unemployed and i am working with my income tax returns. Thank You
Here in Canada 1 million dollars does not bring you one hundred thousand dollars, 10 000 is the actual number. And also as a business owner the more you make the more they take , government taxes lingering at 50 percent. I have been running for 50 years and that's my reality. Maybe in the USA it's different.