12 Things poor people don't know about money

things poor people don't know about money one anybody can have money to most people wealth is only reserved for certain individuals they think that they can't be rich unless they hold a political office inherit companies or are born into a wealthy family but they've got it all wrong there isn't a shortage of money under the sun only a shortage of people who think about money the right way to become rich you have to eliminate your sense of scarcity and limitations so many billionaires right now started from nothing but made it to the top eventually take howard schultz oprah winfrey roman abramovich larry ellison leonardo del vecchio for example they didn't really come from well-off backgrounds but they're among the wealthiest people in the world today and this is because they had a different mindset when it comes to people who can make money two it's harder to keep money than to make it poor people have the impression that making money is tough but almost all of them have made money before and will probably continue making some in the future keeping money is the hard part there are no secrets when it comes to making money you either get a job sell a product or service that's basically it people just don't know how to keep and make more of it a lot of people are spending money that they don't have your ability to save money is determined by your spending habit the more you spend the less you have to save and put into good use alex had a skype call with john mcafee the anti-virus multi-millionaire who's managed to lose almost all of it including his freedom despite earning an excess of 100 million from the sale of his anti-virus software to intel his stance was that making money is one of the easiest things in the world but not losing it is actually very difficult if you don't know what you're doing statistically the average person saves less than 10 percent of the wealth they generate in their lifetimes the rest is simply consumed three a million dollars a year isn't a lot of cash a million dollars isn't worth as much as it used to be back in the day the idea has always been if i only get my hands on a million dollars all without a doubt be set for life but what people fail to understand is that money is devalued every year even those who are currently making a million can vouch for the fact that it isn't as much as most people think being a millionaire in this day and age isn't as hard as it used to be nowadays millionaires are popping up on every corner so if making a million is all you're aiming for think again money is always losing its worth and instead of just settling for the mill reach far beyond 4. ideas are worth nothing without execution what's an idea without execution practically nothing a lot of people out there have ideas that have the potential to turn into something big and lucrative problem is not many people execute them you have an awesome idea in your head but what are you gonna do about it rich people are thriving because they act on their ideas they come up with a plan and go with it it may work out it may not but how will you ever know if you don't do anything about it facebook google and tiktok have one thing in common that allowed them to crush their competitors myspace yahoo and vine respectively and that's their execution a franchise like starbucks is excelling really well for the same reason how hard could it be to make coffee with milk but it's how they executed their idea that's making them millions if you're enjoying and getting value from this video so far show some support by hitting the like button done awesome now let's go to number five make money while you sleep or you'll never be rich time is a standard resource because we all have the same amount of it everyone has 24 hours in a day to do whatever they want to so how did the rich do it they know full well that they can't do everything on their own and that's why they have people do it for them who says that generating wealth should be limited to you alone you don't have to be the machine that makes money but rather build a machine that makes money for you there's so much more to life than just work and struggling to pay the bills life has a lot more to offer so just remember that when you're out there trying to balance a 9-5 job family and friends not getting enough sleep in someone else is out there relaxing peacefully his account growing fatter by the minute you can pay little to no money in tax if you start a business rich people pay little to no taxes at all and this is why they don't identify themselves as employees of the company or business they own and so everything they spend money on that's in any way beneficial to the business is taxed on the company and not on them as individuals most of the taxes taken from the company is made from profits which is the amount of expenses subtracted from the revenue that's why they spend money on private jets meals with clients at expensive restaurants and work trips as their deductibles and so basically the rich just continue to live lavishly as everything they spend money on is at the company's expense and just to get a better idea of this where cooperations pay nil to 3 on taxes the average american pays 27 while europeans pay close to 50 so maybe try starting a business of your own and see how much you're likely to save from paying less taxes seven focus on increasing income instead of cutting down costs it's natural for people to try and get the best deals and save a few bucks on items purchased here and there but sometimes it's wise to step back and ask yourself am i really saving anything at all you'll find someone driving around town for hours visiting different stores and all to save five dollars on a tube of toothpaste there's nothing you've saved there really if anything you've lost precious more the same time and effort could be used to make yourself more valuable maybe try learning a few new skills online that could help you land a better paying job no matter how hard you try there will always be a limit on how much you save but never on how much you can earn 8. wealth is acquired with time poor people always have this fantasy where somehow the stars are aligned in their favor and they strike gold they always want to get rich fast and easy but it doesn't work that way trying their luck buying lottery tickets just hoping to hit the jackpot do you know of any wealthy individuals who buy lottery tickets well that's because they're busy looking for ways to build their wealth through their own efforts amassing wealth doesn't just happen overnight it takes time there's this false belief that you need huge chunks of cash in order to make more money you can start a small business with the little you have and slowly make a profit you may not see the gains at first but with time you'll reap the results a wall is built brick by brick so stop waiting for someone else to make you rich 9. never borrow money that doesn't go towards making more money there's nothing wrong with borrowing money sometimes things happen and emergencies come up and you don't have much of a choice but there are a couple of questions you should ask yourself first where are you getting this money from most people offer loan shark like institutions which take advantage of their desperation to make money they usually end up paying back huge sums in interest because of failing to see the fine print before signing the contract the other thing to think about is what you're using this money for it's not surprising that people go through the trouble of getting a loan only to buy something that they don't necessarily need why borrow cash only to spend it on a game console or a new wardrobe when you could use it to make more money borrowing money goes both ways you either do it to make more of it or purchase things that are pointless sadly many don't know the difference and in the end you're left with this huge debt that you don't even know where to begin to pay it back and the moment you're in the position of having to give someone else money you're making them rich while you remain poor 10. you earn in proportion to your ability to use the tools you have at your disposal we're so used to having these things around us that we sometimes forget that tools and resources are meant to generate more wealth your phone is a great example of a tool you could use to your benefit you could use it to sell stuff online or even go to youtube and learn a few skills that could help you make cash yet a lot of people use it to watch tick tock compilations and scroll through instagram you could use your laptop to tutor students online teach a language or even make a blog tools are multipliers yet people use them for status rich people usually spend money on things that serve a purpose there are so many things in your possession that you're just sitting on that could possibly make you money and the sooner you realize that the sooner you could get rich 11. if you associate with poor people you will be poor don't expect to learn how to make money from people who don't talk about money or think of how to be rich rich folks mingle with people who challenge them and talk about new ways of making money you can choose to be rich by choosing who you associate with such relationships pass on good habits positive mindset and enthusiasm you'll find that your life improves significantly the more time you spend with them if you think you can learn how to make money from poor unambitious people you have another thing coming hang around positive and self-motivated people who will challenge you to be more creative and determined 12. college has nothing to do with making money getting a college education doesn't exactly translate to financial freedom having a bachelor's degree master's or phd doesn't guarantee wealth having one doesn't mean you know anything about making money colleges are designed to teach you how to be a good employee after you graduate they don't really teach you how to be rich so people should get it out of their heads that having a college education automatically makes them rich strive to get a financial education as well read financial journals and books to help you get ahead attend financial conferences if possible it'll all go a long way thank you guys so much for watching if you like the video give it a thumbs up and if you're new to the channel welcome and consider subscribing for more awesome content like this with that said have a great day you guys and i'll see you all in the next one

Channel: Practical Wisdom - Interesting Ideas

Views: 272,234

Keywords: Things poor people don’t know about money, things you don’t know about money, money, finance, investing, budgeting, saving money, money video, financial education, money and finance, poor, people, practical wisdom, investing videos, the poor and money, creating money, hard to keep money, anyone can make money, making money is easy, creating wealth

Id: r1fIxhwZZVs

Length: 10min 11sec (611 seconds)

Published: Mon Apr 05 2021