Dr Boyce Watkins $5 a Day | How to Build Wealth and Become a Millionaire

you can't blame that on me now um in case you wonder why we're here today I noticed almost a thousand of you registered for this this Creek webinar that I was born so there's a lot of interest in stock market for good reason um there's a lot of wealth that's built from investing the people they tend to make the most money the easiest way are people who are taught investing at an early age um I can tell you that you're president-elect or you're inaugurated recently inaugurated President Donald Trump but he's teaching his children he's teaching little barren and little Ivanka and Bianca and little JJ whatever these kids names are he's teaching them how to make money just like your parents taught you how to make money or like you're teaching your kids how to make money but he's teaching them in a way that is going to put them in the driver's seat he's not teaching them how to make money in a way that are going to leave them victimized well luckily for you I have to think on a PhD in finance and it gives me the ability to kind of understand at a micro stop a DNA level how financial markets work how wealth building works how wealth accumulation works how all of that works and so my goal my job is to talk to you about it so that you are informed on this so you can't say nobody told you you can't say well I would have done things different somebody had taught me different well well you're here now and now I'm going to teach you everything that your parents might not have taught you um and I just kind of give you a taste of things because I know a lot of you haven't signed up for any of our classes in the black business school and you don't know what you missed it now the black business school was created to be a low-cost high-quality alternative to an overpriced college education college education leads people in debt and we don't leave anybody in debt but we have you walking away with a huge surplus in terms of the information you have and we teach people how to build we are big on building for the next generation our physical location which we is at Simmons College of Kentucky an HBCU in Kentucky with where we recently opened the dr. Boyce Watkins economic empowerment Institute so that will be our physical location in case you ever want to take a class there in a physical way I'll keep you guys posted for when we actually launch things we just made remember Simmons College recently and it's a great partnership because because I wasn't I'm not a guy that's real big on uh you know traditional education per se um I think that you're in the 21st century not the 19th and not the 20th the 21st century landscape calls for 21st century learning I believe that you can learn a lot more at a much lower cost in a much more efficient way that's much more precisely pointed toward what you specifically meet at the bike course and it's almost like developing method better medication right you have the old-school medication where they would they might make you better but they might kill you at the same time because they're killing a fly with a sledgehammer but then over time you get better medications you get to where you get nano medicine and things like that where they can precisely pinpoint exactly where the problem is they can fix it so for black people our medication our economic medication it cannot be broad-based it cannot be you know we little you lit all times though the tide will lift all boats it can't be trickle-down economics it must be precise based specifically on what we've gone through where we are where we're trying to go what we need to get there etc in fact even with you even when you use the medical analogy um there are medications that work differently with black people then work with white people well the same thing is true with economic medication uh yeah I hate saying this and maybe I'm the first person to tell you this and I don't know if I sound radical by saying this but you ain't white you wait wait you you're not white now why do I need to tell you anyway you know wait a minute boys it is like you already know I'm that way well the reason I have to tell you that you're not white is because you still believe in this sort of um this illusion of America American inclusiveness not because America can't be inclusive not because America can't be diverse not because America can't get better but because America has never really shown any real evidence to say that they're fully inclusive you go to that other university or maybe the predominately white school which is fine let no judgment there because I went to Ohio State so I got my PhD arm and you go to class with other people who don't look like you and y'all graduate and you got better grades than them and you all go apply for the same job and you don't get the same job or if you get the job you don't get same pay well if you get to pay you don't get the same promotional opportunities or if you get the promotional opportunities you find that these sacrifice you have to make spiritually is so deep in so insidious and so painful that you don't even like looking at yourself when you wake up every morning and you wonder what the hell did I just waste my time doing who's dreaming my fatherland whose plan whose vision was this this was in mind if I could have built my own vision it wouldn't have been this and that's what I went through I achieved the quote unquote black American dream I treat achieve did the integration dream the affirmative action during the assimilation dream I was making I got I didn't get my first job I was about 31 because it takes a lot to tell me a long time to get my PhD I was in school all through my 20s but that first job made up for all the job that they can get I was making about $120,000 a year so I'm like that um and you know and that was pretty cool you know I could be proud of what I was and what I'd accomplished but I wasn't happy I wasn't doing work that had any real meaning or real value I wasn't helping my own people I was dealing with a bunch of pricks I worked with people that I didn't like and I said I got to get the hell up out of here the same right my spirit is I got there I sit up in Syracuse put in my neighborhood wouldn't nothin what no black people my neighborhood so I don't have any friends I've always been a little bit of a loner just but it's good to be a little bit of a loner because then you think you you come to your own perception in the world it's not tainted by what other people have been led to believe and I would sit there in my in that apartment not be thinking man this doesn't seem right I'm successful but I don't feel successful I've made it but I don't feel like I've made it I'm supposed to be powerful but I feel powerless and that's what led me down the journey of thinking about the connection between wealth and power how to get real power what that looks like and so if you want to know what I was thinking about for example when Donald Trump was being inaugurated as I said man that guy has a lot of power that's interesting how he accumulated that power I wonder how we can get some of that power to so with that being said let's let's jump in here and let's um let's talk about some of this now I want you to know that uh I won't be able to answer a lot of your questions during the conversation I'm gonna make a little bit of time for Q&A at the end and also you if you you'd like to get a chance to try out our stock market class you'll get a special offer at the end a huge discount if you're interested in giving it a try um but this is going to get you started on your investing journey and I'm going to start by talking about what I call my $5 a day investment plan so I said I said I came up with it I named it after me it's called the dr. Boyce Watkins $5 day wealth building plant and and and I talked it up to the magic of mathematics you know it's fun to use the magic of compound interest to really show people amazing things in terms of what you can actually accomplish this it's almost like it's almost I ever seen somebody where you know you'll read it you'll hear a story about how somebody walked like from New York to LA right and you'll be like how do you walk from New York to LA that seems impossible but people have done in people run that distance and and because all they did was they put one foot in front of the other and even if they were walking slowly mathematically if they just keep walking then eventually they'll get to the destination right well you know it well slowly walk down is kind of the same way it's not sort of mysterious in the sense that you like wait a minute a person can only do that little every day and actually accumulate that much and actually get into the 1% or whatever by the time that they're done well let me show you let's focus a math let's go through the slides here first thing I want you to know is this do you know this is something you may not know that you know our beloved Barack Obama just left the White House and I love I love him a lot I just don't love politicians I think they all lie but but I like him as a person I think he's great as a person I love this family is a beautiful family and and so Barack has left the office and and people some people love them some people don't but one thing you have to give him credit for or some credit for or at least say that this happened during his administration is that during the time using the White House the sp500 which is a measuring stick of 500 of the largest companies in America on the stock market went up a hundred and eighty one percent during the time of the Obamas one office so so if you were a stock market investor you you're very happy with the Obama presidency because the stock market did really well the Dow Jones Industrial Average went up one hundred forty eight percent the Nasdaq went up two hundred and eighty four point five percent that's almost triple triple have you ever heard of somebody say something like you know we bought this house for ninety thousand and now it's worth you know 20 years later it's worth 210 and they're proud of that they think that's really cool right so what's your ninety two to ten that's not even to that is a triple right that's about two and a half times the original value and it sounds impressive right even if it's over twenty thirty year period well over an eight-year period a person the average Nasdaq investor saw their money almost triple so that means if you put ten thousand in the market that ten thousand turned into about twenty eight thousand four hundred dollars right if you invested in the Nasdaq so Obama and his administration as all president administrations are took very good care of people who invest it who like to invest in the stock market this is going to continue to rise on the donald trump based on you know all indicators i see why well because presidents prioritize stock market performance in their agenda if the stock market crashes they get together that morning and have a meeting with economic advisors to say what can we do to make the stock market improve right now imagine if they did that with black with black american problems like what imagine if we live their world she's with me fantasizing here but imagine that they would have say my guys this year seven hundred and fifty people were murdered in the south side of chicago that's in a national crisis let's have a meeting this morning to solve this problem can you imagine if they have meetings like that how quickly they could clean up the violence in Chicago just like that but they don't clean it up because they don't care right well when it comes to the stock market crash when when investors are losing money they give the loss in the stock market a one top-tier priority right and so this is going to continue under Trump most likely if it does drop believe me they're gonna do everything they can to keep it from happening that is a benefit to you if you're an investor our politicians may or may not help the working class but they always take care of people who didi think they take care people who own property they take care of people who own businesses they take care of people who own stock they also of the tax code is even structured to benefit those who do those things they incentivize activity in the economy with taxation if they want you to do something over here they'll say okay but we're going to give you a lower tax if you do this then if you do that for example investing you have a you pay a lower tax that you invest long-term then if you invest short-term that's because they don't want people to be short-term investors why work with the short term investing in day trading a lot of day trading so that makes the markets go up and down it creates what they call volatility so they don't want volatility they want smooth well-functioning markets they go up over time so they incentivize you to be a long term investor what else arm they also want you to own a house they wanted you to believe that they own in a home with the American Dream so what do they do what they say we're going to let you write off the interest that you pay on your mortgage right we're going to give you special tax treatment on the mortgage what they also want people they want corporations and business owners to do well so Reaganomics they said okay we're going to create preferential tax treatment for people who own businesses right so they create the tax code to benefit certain people and get them to do certain things so it the tax code is designed to benefit those who own instead of rent your renter you don't get tax breaks for renting but if you're an owner there's a whole lot of tax break you get benefits for running companies instead of working for other people you get tax benefits from producing rather than consuming products you get tax benefits for lending as opposed to borrowing you get tax benefits for investing rather than spending so let's go down that list you got owners who owner the people who own land who own companies who produce products who make loans and who invest and then you got the people who rich now what you think about where you were which side of this fence you were raised on a lot of people who rent apartments instead of trying to own home people who work for other people instead of starting a business people who consuming in line up until getting those long lines and black friday to spend money as opposed to those producing products those who borrow who go deep in debt as opposed to actually loaning money to people who are going in debt and those who spend rather than invest which category do you think that most of us are raised to be on most of us are ready to be on that right side then on the left side right so a lot of times where you end up economically is is determined by where you start now let's go deeper those please now I'm going to show you this graph real quick there is a point in this graph this is the the stock market performance Oh four of the eight years the President Obama was running for office in the time that he left up until up until 2014 ish it actually keeps going up if you include 2015 to 2016 but we only have 2014 because that shows you enough and this is where Obama says that buying stocks is a potentially good deal think about that he was having a press conference and he's there like whoa wait a minute stock market lost money mr. president all the big-money billionaires are blowing up your phone because they want to yell at you because the stock markets not performing and we know you work for them so we need you to do something so he says well you don't buying stocks is a potentially good deal because the stock market has declined so people start buying the demand starts going up prices are going up it up it up and up and up and that's pretty much one of the mechanisms that drives market performance most people now here's a problem that we have in our community a lot of people have a fear of the stock market deeply afraid of the market they think you have to be rich to buy stock which isn't true this is a five dollar a day plan if you can't afford $5 a day then then this just go sits inside we're gonna lay hands on you were gonna pray for you because we feeling bad for you right now because you know that I don't hate for you be in that position so if you got if you can't do the five dollar day plan we don't have you start with the one dollar a day plan or the two dollar day plan and work your way up or maybe you can get with some of your friends and pull your money together and do something right next what else they think you have to have a lot of education that's because people who run the markets who who do all this stuff are pretty much on what's the word what am I looking for they try to impress you because they're sort of trying to get you to think that they're smarter than you so they use a lot of fancy loan words I heard an investment advisor I tell it explaining how to build wealth to somebody and I was at one at an event you know I do a lot of events every year and so and and I wasn't his brother talk now mind you again I'm a finance professor so I know I know you know I know this stuff pretty well and I was listening him talking I said my guys that poor lady she's sitting there standing and pretending like she understands what he's saying but I know she don't understand what he's saying because I can't handful keep up with what he's saying and I could tell what he was doing he was using a bunch of words that he didn't fully understand because he wanted to impress her to make her think that he was smart it reminded me of Damon wave I remember Damon Wayans on Living Color when the guy when he played together was in prison that memorized the source and memorized the dictionary and we use the long words the aputure nation of the tampon goes into the subordination of the predicate right what would I like he was kind of like that and a lot of investment advisors kind of do that like they really will throw out crazy words to really confuse you and it's also a way that they it's a method that can be used to extract money from you because they make you think that they they can see things they can't really see they think the market is corrupt well there is a little bit of corruption in the stock market but the US markets are actually among the least corrupt in the world and they actually have the Securities and Exchange Commission which is put in place so that white people can't rob other white people so if they're if they can't rob of each other and they're probably not they're not really going to be able to easily rob you it's this is not I mean I know you want to believe that that that horrible things are going to happen every time black people try to do something and I understand I mean you have black Wall Street you had all these other atrocities that have occurred but I'm telling you the coast is clear you can come out now you ain't got to be scared don't get me wrong there's still stuff out there the stuff going on we got Trump in the White House yes however there are lots of people black people like you and I are regular working-class people who become multimillionaires and the beautiful thing is that they move in silence these bilities millionaires move in silence you don't even know that they have all this money because they're not being flashy they're not showing they're not trying to wear their money they're not trying to drive their money they're not trying to impress people that don't matter they're driving little regular cars wearing regular clothes living in regular houses living regular lives and all they do is very basic stuff they don't start business leaders excuse me they don't go deep in debt when they go to college they don't they don't spend money to impress people they start businesses they save consistently and they invest next thing you know they're passing over a million bucks down to the kids they think that a lot of things mark is a great place to lose money why well because you see all the ups and downs on the day-to-day market and it scares you but actually our Warren Buffett one of the greatest investors of all time explained it very clearly he said if you're not prepared to own a stock for at least ten years then you shouldn't even think about owning it for ten minutes so if you own start long term a lot of those ups and downs don't matter anymore so let's move on so here are some facts trillions of dollars in wealth are being stock market the rich are getting richer the reason of Richard getting richer is mainly because they own stocks and own businesses middle-class people will buy homes that's how they they have the bulk of their wealth if you're middle-class chances are baby over your wealth is in your home maybe in your retirement you want to be upper-class you got to just take step your game up a notch you know it's the only one home wealthy people find a way to buy two and three homes all so instead of just owning a house they also put money into the stock market or they own businesses instead of working for people they own companies so that's how the rich get richer that's what the middle that's what the one-percent does middle-class people on homes poor people on nothing unfortunately but but there are ways don't be an owner no matter who you are no matter what your income level is so what are some keys well number one there's a formula there's kind of a way that wealth builders build wealth most regular people I never taught this and I'm gonna explain why in a minute this doesn't just apply to people and it will inherit lots of wealth you see a lot of times because we don't we want to believe that we're powerless because we really want to believe that we have no choice we want to believe that we're incapable of accomplishing anything we love to find a hole in any solution that comes along right you know I call them Negro naysayers you know people they find a problem for every solution but don't look like they're playing defense against hope and prosperity and possibility right like you say well you know if we go that way we can know that it will work you go there we know that it ain't work they don't know what we got anyway dr. Boyce every time you start a business these days I'm burning down so you don't do nothing I don't like that because what that's really saying to me unfortunately is that because you've been sort of trained to think a specific way um you don't really want me to explain how it's possible for you to do some of this for yourself because you use your hopelessness as an excuse for your laziness when you don't believe something is doable then you sort of that excuses you to not even try right how many people do you know like that people that are so hopeless that they don't even try right and if you say well you know I know you broke I know you struggling everything but you know you had $200 and you could have saved that and you could give this and did that instead you know you could get a job it's a such-and-such they they they they fight you every step of the way that I will know I was sick that day and and I mean my foot was and I didn't want to go there I mean you go out in the cold I'm not gonna go out there right they'll find an excuse you know the Negro naysayer mentality it's kind of like an addiction to what I would call struggle anomic struggle na mcc's to me is when you just are just so committed to the struggle even even in the language you know people say well it's the struggle out here it's hard out here I don't really want to think about my life as a struggle you know I'd rather think of it as a struggle where I'm gonna win this excuse my French I cussed I apologize I want to think of life is like you know it's going to be a battle but I'm gonna win because I come from the greatest group of people in the history of this world we are the mothers and fathers of the earth is dr. Francis Cresswell thing said we are the parents of the universe so so you can't stop me you can't stop me and that's what that's when I tap into the God's Spirit I don't mean to get all crazy with y'all but I'm dead serious you know like I just in my mind I think well no no no this is this struggle so-called struggle is an opportunity for us to say we overcame you know they say we shall overcome well we ain't even overcome yet we ain't we have not overcome hardly anything but when we do overcome it then we can start singing and say look at what we built and we did it with nothing that to me is black power that's black pride so let's keep going all right so you know this is these four these rules also applies to self-made millionaires these are the people I pay more attention to not the people that were sort of given everything I thought my people started with very little and accumulated a lot over time so here's the two of biggest questions that many of us ask ourselves there are two questions that most of us at some point have to ask ourselves the questions of this how am I gonna make some money right you know you one day you wake up and realize that you need the money makes the world go around you need money to do basic things so your question is well how am I going to make some money right the second thing is so so here's how the unempowered person answers that question this is this goes back to when you a little kid when you got first introduced to money when you ask your parents for some money for some jeans that to go skating or you know to go buy pokemon or whatever it is you did when you were kid this is this is how an unempowered person answers that question of how am i give somebody the other power person says I'm going to wait for the government to give me some money right I'm a way for the government to create opportunities for me I'm a way for the government to me to check whatever that's unempowered that mean you're lazy I mean you're bad it just means that you don't feel that you have the ability to kind of get it yourself you kind of are waiting for somebody else to give it to you but it's our government too so it's not like we don't deserve that money it is what is it the moderately empowered person says I'm going to go get a job so your parents might say well you want some money boy you better go get a job right you might have parents like that what else working wealth builder takes it to the next level they say well I don't want to go get a job I want to create a job I'm going to start a business right that's what a hard-working wealth builder might say like no I'm not meant to be the ideal me I am for a while I was okay being the employee but I didn't like it I said I don't think I want to be the employee I think it's more fun to be the boss so how do I be how do I become the boss how I get his job right right so so then the person who does the least work though says I'm going to make an investment and that's deep I had a conversation with dr. Paul Anderson y'all know I love dr. Anderson he wrote the books are two of the most important books in the history of all the black America black labor white wealth and parinama --kx if your children haven't read these books make your kids read these books please he should be required reading for every black family in America and one thing dr. Anderson said it was real really cool I love what he said he said he was telling me he said well you know actually my Jewish friends they don't really want to run a business because that's work he said what they do is they will own 10% of 10 businesses which gives you the same income as if you own the whole business yourself and they spend their time playing golf because they get money just by putting up the capital their money is working for them that when do you hear people say you let your money work for you that's when you show up and somebody says well I want to build a bakery and I'm ready to do the work and I think got the money you provide the money so you're making money just by providing the money they're doing actually the actual labor right so there's different ways to make that money and that's what I would say in hip-hop terms you know that's all making money to fly away well that's the fly way to make money in my opinion all right anyway let me keep going the truth is at the end of the day all four solutions work and that's the mixture you see right if you look at wealth building historically in America wealth has come from some government subsidies right so so yeah we can go in march and rally and tell the told President Trump or President Wilson President Johnson President Smith the Presidents on the future president Kanye right whoever the presidents are we can tell the president yeah we want our portion we want our reparations we want some land we want our Homestead Act you know all of that but then also when you when your children are taught how to make money you teach them how to work hard just as if they're working for someone but the person they're working for can be themselves it can be you it can be someone in their community it does not have to be a white man and then it is eventually you graduate to the point where you build a capital base and you can reinvest that capital base in order to make yourself more wealthy so how do we catch up with rich folks well a lot of this comes down to understanding what other people are doing and that you're in what that you're not doing right so we have to sort of redress how we even talk about money from the very beginning you have to let go of the idea this idea that they have some magical voodoo right stop thinking that they somehow have access to some of us a bunch of things that you'll never have access to don't get me wrong Donald Trump has access to things I don't have he has access to wealthy friends I don't have absolutely but there's a lot of stuff I have access to I mean remember I think I've shown you - before I tell you again - did the black people have more spending power than the gross domestic product of most countries on this earth America go down the list of Saudi Arabia to Sweden to Venezuela to Egypt to Nigeria by they're in entire countries they don't have as much money as black America had but the thing about money is that on what happens when money depends on what you can do it you know you have people I've got to see a lot of hands raised let me you guys let me know I'm gonna take a quick little break I'm gonna ask you can you hear me if you can still hear me and everything go to the Q&A box and say yes I can hear you or something like that so I know you can hear me let me see okay Kim Williams says yes all right Thank You Kim okay Kim the only one that can hear me okay wait I see James Brown and William Williams okay great great great all right so let's keep it going let's keep it going all right so so so you know because the thing is it's very easy to kind of look at people that are doing something at a certain level and really attributed all to magic it's not magic it's not magic it's very basic and it's stuff that you've known your whole life I did I just helped you understand it a little bit better because I just you know as a professor I should be able to do that right stop believing that they're all liars and crooks and that they just have wealthy girdi - this somebody just gave them everything um I had none of that you know when I was 28 years old um I was homeless technically if homeless means you have nowhere to live and you got to leave your apartment in the middle the night because you can't pay the rent then that was me you know I had to fill up my whole I had enough money to rent a one-way man to Ohio because I had a place where I thought I could stay in Ohio in Ohio and I had to fill that hole man up with everything I own and leave in the middle of night it was it was not cool there's definite thats not that's not fly that's not you know so no I can't even got a girlfriend anything you living in your van but it ain't even your van but um you know so so I know you know that feeling of being empty in the bank account but you know at the same time even when I had no money I was always a billionaire because of the knowledge I was accumulating you know when you kind of know how to build things you know how to take things that that don't have much structure to them and create what you want it's like if I gave you uh you know a million acres of land um and you knew nothing about what you do with that land you might think that's a waste you can literally put you on that land and you can starve to death and be bored to death and have no income because you don't know what to do with them land but imagine if you had a million acres of land and you the people you put on that land were carpenters and gardeners and hunters and builders and computer technicians and people who could build an electrical grid and who knew plumbing they could make that land into a complete city right if you had enough skill you could literally build wealth with the skill you have so for black folks you know we must commit to excellence such that we as a part of our consistent cultural norm push for the idea of all of us being wealthy in terms of skill right it's very very important so let me keep going all right so that's why I even when I was broke I knew I was wealthy because I had education and I also and then when I eventually got some heart and I got ahead courage to go with the education a little vision to go with that and a little maturity to go with that a little experience to go with that then I knew I couldn't be stopped so so moving on so there's some steps to the wealth building process first you want to find out where the money that write to you learn the system so you can decide what you want to be in the system three you make a plan for getting access to wealth over a long period of time that's your wealth accumulation process this is a wealth building lifecycle that I created this ain't nothing that you did you might you might see something similar in somebody's book somewhere I guess but this time I literally put together just for you guys I didn't read it somewhere next you implement a long term so so sorry after you you learn the system and learn where you want to be you then make a plan after you make the plan you implement the plan the implementation is a long term process of accumulation of wealth over long period of time most people don't get rich quickly they get rich slowly next you must protect the wealth you've accumulated a lot of people don't know you ever heard people say more money more problems yeah you probably heard that right well that's really true right when people get money and it get accumulating money is no longer your problem your big problem at that point is protecting your money because when you get a lot of money everybody wants to borrow some everybody wants to steal it from you everybody wants to to exceed for it right oh you know just like it is very basic I mean this is an animalistic concept right um you know it the way animals kill each other in the woods to take their take their food take a woman take whatever their their territory well you run through you roll through the blue shining in a Mercedes with 25 gold chains around your neck with your music blasting and your pretty girl next to you because you to change and you know on top of the world what's going to happen to you you're going to get beat up and robbed like 2 Chainz got beat up and robbed well the same thing is true with rich people if you are if everybody knows how much you got then you're going to get beat up and robbed except you may not get beaten physically you just get beat up in court or somebody beat you up in the court of public opinion or or whatever but video or if you're an athlete and you got a lot of money you don't have any education then your manager and your lawyer and your accountant they beat you up and robbed right so the end of the day you want to protect the wealth that you've accumulated I don't know if you know this but 70% of all wealthy families lose all their wealth within one generation 70% 90% lose all their wealth within two generations so as you accumulate wealth start thinking about how you're going to protect it so also stop believing the wealth can only come to those who have money Albert Einstein said that compound interest is the most powerful force in the universe this is a guy who created easy equals mc-squared he understood it mysteries of the universe that no other physicists in the history of the world or mathematician has ever understood a million till this day and he said compound interest is it absolutely fascinates him two things fascinating sign from what I've read one was compound interest the other other one was quantum mechanics because quantum mechanics if you know anything about it is very very weird if you want to every doesn't see a weir or a show go watch a video about quantum mechanics it'll freak you out so anyway so what does that mean when he says compound interest is the greatest force in the universe well um it means that money just grows really fast you know money multiplies in ways that it does absolutely mind-boggling um you know if you look here here's a chart I want you to look at this is compound interest is let's say you had $1000 in principle you let it grow you put your thousand dollars in there and you can see you can kind of see it at the bottom I'm sorry guys it looks like the bottom is kind of chopped off a little bit but you can see goes out 2 4 6 8 10 12 14 16 18 years so you see that that how it grows at first it grows slowly and then it starts growing a little more and a little more a little more and so the interest is what you earned off the principal the principal is what you put in the first thousand that doesn't change the interest is what you're earning from the principal but the compound interest is interest on top of interest so it's almost like I compared to like bunny rabbits you know like I you know when we were talking about in class in are investing class I said if you're trying to have let's say your goal was to own as many rabbits as you possibly could right how would you accumulate a stockpile of rabbits if they were $10 apiece would you just go and buy 10 rabbits this week and then 10 more next week and 10 more the next week and just keep accumulating and then if you want to own 5,000 just buy 500 rabbits for $10 apiece oh sorry got $5,000 you can own 500 rabbits at $10 a piece no you don't do that if you're smart what you do is you buy five male rabbits and five female rabbits you put only put them in a pen you turn on some Marvin Gaye and you let nature take its course you let the rabbits create other rabbits and then next thing you know you got rabbits on top of rabbits and the rabbits and the burners are getting together with other rabbits and make it more rapid next thing you know you've got a thousand rabbits when you only started off with ten well money grows like Rep so in a way the corny way I describe it I talk about it as money rabbits right money rabbits money rabbits get it funny right so anyway so let's keep going parts let's talk about you know how money goes now here's the thing annuities are better than one lump sum of money right that thousand dollars that we just showed you does grow in compound interest well what if you were putting in a thousand dollars a year or a thousand dollars a month right if you have this same process occurring except it's occurring hundreds of times because over over many many years you're just doing that every single month well that's what an annuity is an annuity is when you're putting the same amount of money in every single time just your $5 a day to just do it over and over and over again so let me show you what's an annuity an annuity is when you're not putting one lump of money in you're putting the same amount of money in every period for certain number of periods it could be monthly it could be daily it could be minute by minute the year by year whatever you choose this allows both your principal and interest to kind of go together so you're getting you're putting your money the money or interest the interest earns more interest but then you're putting in more money which is already more interest or any more compound interest so it really accelerates the process right so so what happens is you create power this creates financial power so what I did was that say okay I'm going to really you know I had a real hard time you know really in the beginning what I'm trying to convince by people that we can actually do something with we can actually build something because there's so many people that really believe that we're just broken that's where we're supposed to be forever and it bothers me very much so I've sat around thinking about creative ways to help people understand how anybody historically any way how anybody could build wealth if that's what they choose to do so I created the $5 a day investment plan $5 a day that's left you can't go to Starbucks and get if you get one item you might spend less than $5 you get two items you can forget it you get you get up a water and a banana you don't spend more than $5 you get a coffee and a muffin you're gonna spend five seven eight nine dollars whatever so the $5 day investment plan less than the cost that it takes to go to Starbucks or even to go to McDonald's and order off the dollar menu or whatever or you can't even buy that much gas for $5 right so let's say that you earn $10 an hour mostly all make more than that but those of you who make only $10 an hour you can get with this plan as well you work 40 hours a week what is that that's $80 a day you're earning $400 a week $1600 a month just so you can see it you know in your head now let's assume that that five dollars a day is almost like lunch money right so you can get an app and I show my students exactly how to do this in the investing class you can get a coin stash of Robin Hood or something like that and just do $5 a day and what they call the auto stash that's what stash has and the question is how much money would you have after 10 years so remember you're broke you ain't got nothing you are flat broke you're like me when I was in my van moving in the middle of the night with my basketball on the dashboard because I had all my stuff in the back of the van you ain't got nothing so you're not you're not starting from anything how much money would you have after 10 years well after 10 years if you if you don't save at all you'll have nothing to show for so imagine if you just save that money instead of investing let's start with savings first so you can have a benchmark so a lot of lot of people talk about savings so let's let's look at this okay so if you started poor you'll finish poor that's what some people believe that's what you're taught in America that if you're born poor there's nothing you can do about it you're kind of trained to be hopeless and helpless so I'm flying to this lab real quick because I want to get to the next to the next one far more interesting this if you simply save and don't invest you'll be ok so 5 dollars a day adds up that's what my grandmother used to do my grandmother used to save that's all she did she didn't invest anything she didn't wanna lose the money so you save your money so you have $150 in a month approximately is about 30 assuming a third a month which approximately is about $1,800 a year which over decades about $18,000 over 20 years is 36,000 over 30 is this 54,000 that's not bad right I mean you say 30 years five dollars a day you get 54 K you're not poor right you're no longer in poverty I mean you know all in but you're not you know you're not destitute right so so saving isn't a horrible way to build money but it's but here's the thing so saving can give you financial security and an insulator from poverty but it doesn't actually give you a chance to move up we want to do the George and Weezie we want to move on up we don't want to sit still so let's talk about how you how you can move on up but so the problem with saving is that your money doesn't grow so this keeps you from enjoying the benefits of living in a money and capital driven society you see when you live in society where there's investment everywhere and businesses are starting everywhere and people are looking for capital everywhere when you're sitting on that fifty-four thousand that you saved up you shouldn't just be sitting there that's like having the nicest car in the world in your garage and you're not even driving it you're not you're not driving it nobody can rent it nobody can get in it because you don't want to get two seats dirty right but well you don't want you only might your wreck your car right well you know that's a problem because you know a lot of people don't invest because they're afraid and there's ways to overcome all of it and we talked about that specifically you know with my students and I can tell you more about that later if you ever want to know but but let's get let's focus on this now so a lot of this fear is totally unfounded there are complete theories I can show you that will say that if you allow fear to keep you out of the stock market to this point you missed out on a lot of opportunity for no good reason so I'm not crazy I'm a professor so let me explain let me dig a little deeper all right so imagine if you invested at five dollars a day instead of sitting on it let's say that instead of saving it you actually took it and you say let me let this money work for me and let's assume you are nine percent per year on your investments and what they call a diversified portfolio which means basically that you don't put all your eggs in one basket nine percent a year is a reasonable assumption based on what the market has done up until this point how much would you have after ten years well remember before you had eighteen thousand after ten years I think those yeah that's right eighteen thousand and now look at what you have after ten years so we have three levels here we have no saving this is what happens when you go splitting money on Gucci belts and sneakers and t-shirts and and you know in trying to be flat so you're down here at the zero mark you just over broke you got to keep working because you have no backup plan you playing struggle knowledge right here now if you're a saver you're smart you're smart but you're your wimp so you're not your money hasn't actually grown but you've been accumulating so good for you that's good so after about ten years you have eighteen thousand if you invest according to this model this is how much you have so the investor has done this is what's true throughout history now past performance does not predict future performance but this is what would have happened you know pretty much over almost any ten-year period in American history right the investor would do better than the person who simply saved okay so let's keep going wealth after 20 years let's go after 20 years of see here let's get the chart so 20 years now you see that the at the 20 year mark the saver has accumulated about 36,000 but the investor has over a hundred and two thousand so I'm gonna put these trucks next to each other so you can see how the gap grows now let's go 30 years the saver has accumulated fifty four thousand but the investor has about two hundred and eighty one thousand dollars two hundred eighty one thousand dollars I don't know about you but given that this person started off working for $10 an hour and committed to state investing five dollars a day there's no way on earth this person who has two hundred eighty one thousand dollars in liquid financial assets could call themselves poor anymore in fact they could they weren't poor after the first step of the tinium work they weren't poor here but here they're actually doing well they're probably in the top five percent of Americans I don't know what the wealth level is to be in the top five percent but they're probably pretty damn close so let's look at this chart that this is what I would call out of poverty now um this is category four it's a little bit of a typo but don't worry about that so after ten years you can see the gap is here but it's the wealth levels aren't that high but the gap is still there 20 years the gap grows wealth levels get higher 30 years now look at 40 years look at this what if you did that 40 years what if you went out 40 years and you did the same strategy this number is over $700,000 now 40 years is a long time that's you know that's about the average working life of a 25 year old right so that but that means that person will be able to leave Oh three-quarters of a million dollars to their family it means if you had a child and you started a $5 day investment plan for your newborn baby by the time your child was 40 based on history your child would have hundreds of thousands of dollars in assets to play with they do and your child 40 years from now is competing with Baron Trump Donald Trump's son who he's preparing his son to be a ball she's my preparing a son to be anybody's employee he's prepared to son probably to be an arrogant prick just like him and when you know the question is whether or not your child can stand up to Baron Trump 40 years from now we'll all be determined by how we set the playing field for him did we lay out a foundation for him or did we leave him hanging out too dr. Quan ensign said that it's criminal to send your child to somebody who hates him to go beg for a job because he can't pay his own bills and can't feed his own family it's criminal so it's absolutely criminal my opinion for you not to invest for your child for you not to teach your child how to compete in a competitive economic society black people were never taught how to compete an angel fault if you go read black labor white welcome to dr. Anderson's books he quotes laws put in place that said that our goal for black people is to make them into a reliable hard-working well disciplined uncompetitive subordinated labor force so you're if you're not competitive it ain't your fault you were trained to be that way but it's time for that Jake could be up it's time to end that right now so so here this shows you how you can compete even if you're starting off at the bottom so here's what I want you to observe number one the differences between saving and investing they grow at what you call a nonlinear rate that means that as the more time goes by the more the gap increases so it becomes that much more pronounced that much more dramatic the longer you invest it when you are an investor your number one asset ain't money your number one assets not money your number one asset is time a person with no money and a lot of time is better off than a person with a lot of money in no time period so if you're listening in your 20s you are better off than a millionaire in their 50s that is a mathematical fact the question is what are you going to do with this precious commodity called time are you going to waste it or you're going to invest it if you are sitting around spin until the sorry for yourself then you wasted it if you're hustling and making moves and making things happen getting knowledge investing and putting things together building your portfolio then you're investing that time properly you will in the game a hit next a person who starts poor it doesn't have to remain that way I don't care what anybody tells you I just showed you mathematically that a person who has a low income makes a little above minimum wage what some discipline can actually build something a poor person Oh what's a child to be well-off as a clear pathway to get your child out of poverty so if you can't get yourself out if you can't do right by you do right by your babies anyway please my goodness so it's not magic it's math that's all it is this basic math and if it's math that confuses you a little bit or boggles you or kind of makes you question and I wonder about it don't feel bad because Albert Einstein felt the same way it bobbled him it made him think this can't be right there's no way money can grow this fast so anyway I'm going to end this with like a quick special offer if you want to dig deeper into this you want to learn more as you know we have the dr. Boyce Watkins stock market investing program which you can sign up for it's a class that goes on and on forever it's a program so you can treat it like a class which means you can stay for a few weeks and then go or you could just stay and we meet every week we meet twice a week and all we do is we talk about wealth building we talk about stock market investing we do lectures on every single thing you can imagine for that that involves stock market investing every question you have we answer it etcetera etcetera we have lectures on everything from day trading to just simple buying old strategies and I can mentor you through that process it's a very very low cost program and it is very effective everybody loves it if you know anybody who's in the program just ask if you like to class I guarantee you they're going to say that they love and if they don't love it then you shouldn't sign up but everybody loves the class if you want to sign up you can visit write this URL down you can go to the black stock market program com that's V black stock market program com if I made this for black people I like using word black because I get tired of people being scared of being black and being afraid to say the word black or or pretending like blackness should always be an afterthought I don't think blackness should be an afterthought blackness should be the preliminary thought I can't see anything without seeing it through the lens of blackness and I choose to be that way because that's what we need my energy is best applied when it's directed to the community I'm not trying to apply to everybody and then let black people kind of tag along so you can go to the black stock market program comment sign up but now the code word you can use is a webinar 120 webinar 120 that's a date January 20th so you use the code word webinar 120 that's one word and the price drops by 40% so the monthly fee the regular monthly fee is 89 dollars a month if you sign up with the discount code you can get in for 53 40 per month and that's that's good for the next 48 hours okay so you can sign up at a discount that's your price book now and forever also all content is recorded so everything we've done so far you can access all of that all the special lectures you can access that I'm not doing a free cut a free digital copy of our new film the secrets of black financial intelligence you can watch that for free as part of the program so we pretty much give you everything you need to have pretty much whatever you would get in any sort of finance program at any major university including Harvard or Yale there's nothing you would learn at Harvard at Yale that you can't learn right here we know all of that I know all of that stuff I've been teaching for 23 years I've talked probably about 20 different finance classes at major universities also the program lasts for as long as you remember so there's no deadlines no date where I'm gonna put everybody out but you can always leave whenever you want to you can unsubscribe whatever you'd like but you can also stand there forever and as long as you remember the discount applies and there's a 30-day 100% money-back guarantee in case you're not happy for any reason we have a whole support team that you can reach out to that can help you with that if you ever have any issues but nobody has issues everybody loves the class and I think you're going to like it too all right so let me in the screen share real quick and I'm going to answer some of your questions so that's the black stock market program calm all right so let me see you and we'll grab the Q&A section again let me see all right so we're going to wrap it for our Q&A and I'm answer as many questions as possible try to make your questions quick because it makes it easier for me to answer them because when the questions are really really long like my grandma just inherited you know two million dollars and she on the farm and and gets disability and is trying to figure out if it's going to mess up her Social Security after she figures out how to quit her job and get investor 401k rollover like like I can't do all of that right now arm but you know been giving one sentence that would be awesome all right so let's see here Derek says have you ever done binary options have I done them no have we talked about in class not yet do I understand them absolutely I know that binary options are so we can do special lectures on binary options um Jason North Dakota Wow I bet you're really cold right now North Dakota is like the coldest place ever arm let's see Kirk says what do you think of punch TVs IPO offer I don't think anything about it I mean it's an IPO there's something called in the efficient markets hypothesis which pretty much says that investors are going to bid the price this should be bid for that for that you know that security so it's not like sort of a magic thing that that punch TV is some great company that you know that's going to be different from everything else it's kind of like every other IPO so it's assuming that it's all in on a major exchange if it's like some private stuff where you saw your boy on Instagram was selling the shares and you might want to be really careful because those that were you might actually be participating in an illegal IPO but I don't know much about price TV how do you know which stocks to invest and well that's actually something that's not as hard as you think a lot of people think that it is um that it is um complicated to pick stocks it's really not I point you guys to the book a random walk down Wall Street by Burton Malkiel and in that book he does an experiment where he has monkeys pick stocks and basically the monkeys actually make more money than the experts on Wall Street and the reason is because monkeys don't make it complicated monkeys just would pick the stock can go eat bananas or whatever and let the stocks grow and basically he showed that if you just diversified you're usually going to be in a good English shape what you don't want to do is not diversify somebody was asking is the code webinar 120 yes it is webinar 120 and the URL is the black stock market program com so it's V black stock market program comm anonymous viewer can you do a video on life insurance well the stock market class I can certainly do a video on the types of life insurance that link to investing absolutely just like you a section in the course and so you can request special lectures and what you'd like to what you'd like for us to cover in class we'll we can cover everything there's already a ton of stuff in there but by the time you know the next six months are up I'm going to have tons of stuff in there um let's see here let's see Evander says Evander it makes you think about Evander Holyfield appreciate all you do I currently invest in Apple Microsoft share builder comm are you familiar at form if not do you recommend Oh with Shelby share builder comm I don't know much about share builder comm I can look it up if you're in the classes ask me about it in class again and I can investigate it we've reviewed three apps Robinson acorn is - I'm going to view review um some other stuff I think one's called betterment and this may be wealthfront I think wealthfront is one of the apps or maybe that's something else but I'm going to review it somebody asked me about it so I pretty much review whatever the students want me to look at um let's see here ok Gabrielle says I was trying to get the previous recorded courses for the investing class ok if you have any challenge logging in just email write this email down it's support at the black business school calm that's support at the black business school comm we have a very good very big well-paid support team that's available to pretty much kiss your toes and be at your beck and call so whatever you need and if they don't kiss your toes and you tell me and I'm going to I'm gonna kick them in the butt um anonymous viewer what are the penalties when you withdraw funds from mutual funds there are no penalties withdraw from mutual funds there are penalties to withdraw from retirement plans where you have to pay taxes number one then you have to pay a penalty for early withdrawal about maybe 10% let's see I finished a temporary job last month and therefore back on the job search trail I will start my business once I raise enough money this year I would like to raise a seven year investment fund what would you suggest arm o start a seven year investment fund um you know if you're asking about suggestions in terms of what you should buy um the main things I would say is make sure you diversify and make sure you keep it as liquid as you need to keep it on you know so for example a liquid investment is like a stock because you can you can buy stocks pretty easily um a an illiquid investments like art art is hard to sell of stocks are very easy to sell so I'll keep it liquid keep it diversified and keep it consistent remember that time is more literally more valuable than money and investing your number-one asset is not money it's actually time so know what don't forget that so use your time to your benefit don't waste time when you waste time you really are wasting an unbelievable amount of money let's see here okay somebody's asking can I see the first slide again um well I don't want to go back to the first lab right now but what I'll do is I'll make this video available I'll put on my youtube channel and you can you can get it off there if you're in the class it goes into the class as well um NSC here of likitha says what about kids arm okay if you like kids you should have them if you don't like kids don't have kids I'm kidding I don't I don't you mean we say what about kids I like it I have a daughter and my son um let's see Denise if you were just starting to invest in stocks with a thousand dollars can you give me step-by-step directions on what you should do um well we do get we go through the step-by-step so behind your first-year stock in the class it would be hard to go through all that now but the apps you might want to look at our acorns we we're a tree in class we teach the students how to use acorns stash and Robin Hood for starters because those are the apps that have different approaches based on the types of investing that you're going to do and so you know another way is you can open up an account with like Ameritrade or etrade or something like that that can get you there um let's see here uh the Richard hello dr. Watkins my name is Richard - annum from Hattiesburg Mississippi I actually listed you as someone like a meet in a recent article I was interviewed for our thank you so this is pretty cool crap my question is do you think credit repair business is a proper business to look into yeah a lot of people need credit repair just make sure you learn learn the landscape learn what you learn what you're doing so you can really know how to make the business work don't just go into it because people are making money in the industry um go into it after you do some research investigation you may even want to hire like a mentor that can actually help you build the business in the right way let's see let's keep it going here okay so funny I see a lot of yeses from early when I asked if you couldn't hear me okay let's see willis dr. boxing explained low turnover mutual funds and whether it's a good investment for those who want to retire early live off dividend income well low turnover mutual funds and basically mutual funds where they don't buy and buy and sell a lot of shares there's not a lot of churning like a lot of like selling this and buying that sell mr. miner because whenever they're buying and selling that's transactions cost which reduces the amount of money that you actually make so there's an argument that says that you know you'll need to do all that you know they have what they call exchange-traded funds yes that allow you to get the benefits of a low turnover mutual fund without paying the fees of a mutual fund because mutual funds charge you for all the overhead they charge you for the staff the research the buildings the administrative fees the secretary all of that and you know some people said what etf's don't do all that they just track an index so it might be easier to do but just because it's low turnover doesn't mean it pays a dividend income so that would be a very different kind of investment vehicle um let's see here uh garveyism says so I just about have enough right now to start investing in the stash that my question is do I just pick a diversified portfolio and do the ATO stash well that's a good way to get started um they what they do is there are different ways you invest based on your risk tolerance um there are different ways to invest based on your time horizon how young and how old you are young people invest very different from old people arm there they're also categories of assets you invest in different sectors so you might invest so one person might want to go into tech another person might want to go into fashion another person might want to go into environmentally clean or green energy companies or whatever right so or clean in there's you're not green it's you know what I mean so so so investing all is a lot like like picking clothes you know it's like style you know maybe you like jeans and I like something else corduroy or something might wear corduroy anymore or that did I just sound really old what I said that anyway all right so let's see Willis says I once heard the golden rule of personal finances always have seventy percent of your networks and investments meaning that you should always have no more than the remaining 25% in depreciating assets what's your opinion on the statement I think it's a good rule I think it works I mean I don't think there's any hard and fast rules but then again though you know I'm not a guy that follows rules oh my god that believes in doing things that make sense and so that the benefit of that is that as the world is changing you can reshape your paradigm and your approach based on the existing opportunities um that are out there right I'm so you can't live in 2017 with a 1992 mindset that's not going work it's just not gonna work for you um let's see here mark says how do you feel about investing in it's real estate investment trust sure that's that's great you know the big world that investing is you diversify spread your money out so a lot of times when you say what do you think about investing in gold I'll be like okay sure you say what do you think of Boise what do you think about investing in tech I'm say okay okay sure boys what do you think about investing in China okay sounds get short right what am I saying where am I getting it I'm getting at the idea that you want to just diversify you want to have you know seeds planted everywhere because you can't really predict exactly which industry is going to do what exactly I mean anything that you can predict based on information you can look up in a magazine millions of other people have that same information and so what happens is the price changes based on the information so let's say for example there's information in Time magazine that says on that General Electric is going to make an extra 10 billion dollars a year next year and you say oh my god I just read that ge is going to be making all this money I'm going to buy some GE stock well by the time you go back and buy it the price will have already changed to reflect that information investors would have already pushed the price up so you're paying more for that company because it's a more valuable company because of this information that's been released that's what they call the efficient market hypothesis which leads to what they call the random walk theory in finance I'm not going to talk much about the efficient market hypothesis or the random walk because that would confuse you and scare you and my goal is not to scare you my goal is to guide you in a way that's going to makes it so anyway I'm going to go ahead and shut this down the URL is the black stock market program calm the black market program calm the password is webinar 120 webinar 120 use webinar 121 word not to and you can get in for 40% off and that's a special offer the last 48 hours and it's because you came out here and we hung out today and I hope that I've given you something that benefits you in your journey I'd you know I just really want to see you invest I want to see you build on once you do something good with your money so you know you can't now you can't say nobody told you that I just told all right guys I'm out of here and I love you and I hope you have an awesome day and have it have a great weekend don't be nerdy like me sitting around working go do something fun I thought you guys so take care bye bye

Channel: Black Health and Wealth

Views: 198,462

Keywords: how to make easy money, how to earn money, how to get rich, how to become rich, how to become a millionaire, passive income, residual income, how to make money online, how to make money, how to save money, how to accumulate wealth, how to build wealth

Id: -8OjyDSW6cM

Length: 59min 56sec (3596 seconds)

Published: Mon Jan 23 2017