How Ignoring This Advice Cost Me $1 Billion in My 30s

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Not knowing This cost me $1 billion. Now I'm going to share with you the truth about how money works. So some of you might have seen the cash flow quadrant from Rich dad, but essentially you've got a E. S, a, B and an I. And for those of you who don't know what that is. Employees, self-employed, business investor. So most of us start off on the left side of the quadrant, the E and the S side, let's say, as employees. So this is how the system works. And this is exactly what I wish I would have known as an employee. Many of us are working our butts off and were what we would call W-2s or, you know, we make money each and every couple of weeks. And then what do we do? We stick it into some kind of a financial institution, like, let's say, a bank. Okay. So this bank, when it gets your money, it actually is a liability for the bank. The bank actually has an expense back to the people. Now, this doesn't have to stop at a bank. This is the insurance industry, insurance policies. These are pensions, let's say, or these could even be retirement accounts. And all of these systems are set up to take money from what I call Main Street. So money comes in from Main Street. And then guess what? The truth about money. It goes back out to Wall Street. And here's why. Because when you give money to any of these, they actually owe it back to you in some type of a payment. So if the bank, let's say, has a savings rate of three or 4%, they all of that back to you. That's an expense of the bank. So what are they? Do they actually have to loan it out to people like me? And this is actually the truth about money. So when the when there's a liability here from Main Street, they actually suck it out into what's Wall Street. And then it gets lent to, of course, build big projects like we do like this. So let's say it's paid out at 3%. Let's say from this side that I borrow it at, let's say, 7%. And then, of course, what actually pays all this back, these assets, it's here pay, of course, the insurance, the pensions and the retirement accounts. And of course, the bank the bank takes all their fees. The insurance company takes their fees, and then that actually makes it back over to Main Street. So the money starts at Main Street, all of it. So when you look at the quadrant, most of us start here as an employee. And then if we get the courage, we start a business or self-employed, let's say, But it all still flows through the system like this. And once it hits here, it becomes a big liability for everybody that sits in here, which is now branded and called Wall Street. So what we're trying to do is bypass all of that and actually take the money from Main Street and invest it into Wall Street type assets. And that is how the rich get richer. So the trouble with Wall Street is they try to make the system very complex, but it's really not complex at all. All they've done is make everyone in Main Street believe that they have to use these middlemen to invest their money. That's it. And they make it so easy. You just take a little piece of your paycheck each and every week, or you dump it into the savings accounts when in fact, you're getting killed here from inflation. And we all know that inflation has been three, four or five, six, even 9% recently. It just takes six years for whatever balance you have in your bank account, let's say, to have it eroded due to inflation. That's all. It just takes six years if you compound that money forward. So as an example, let's say you're on Main Street, you have $100,000 sitting in the bank and inflation rate has been 6% over ten years. So your money is still in the bank. It's still 100,000 on your bank statement. It says 100,000. Well, what does it buy? It buys 50% less of goods and services based on inflation. That's actually true. Even President Reagan once said inflation is a violent as a mugger, as frightening as an armed robber and as deadly as a hitman. So for me personally, I started as an e went to an ask, but then once I finally made it over the B quadrant and actually built a business, I started to invest. And that's actually what I understood. It was in my late thirties. Once I realized how the system actually works, the entire system relies on Main Street to give its money to them and then to reinvest it back and they pay pennies on the dollar. Once you understand the system and you get to the I quadrant and you start investing, this is not for the faint of heart. This is actually what this entire channel is dedicated to is how do you beat inflation legally, not give the money from Main Street to Wall Street and then ask for it back when you can just get it here and invest in assets directly beating inflation and becoming incredibly wealthy. If you think about it, this entire industry is just a commissioned industry that completely makes all of its money on you, on your hard savings as it sits in a bank, insurance, retirement or a pension. All this industry is doing is just merely taking a fee off of the money you're making. Already. This entire system is just all about sales and marketing, and they're convincing you that they're better at managing their money than you. And they could be. But that's your job, is to figure out how to take this money and invest it here and bypass these folks. And if you do that, you'll become wealthier, faster. And if you want a checklist of everything that we look at when we're trying to buy deals in this category, just click on the link below. One thing to understand, once you go from the OECD as the media are, you realize there's way more money than there are deals. Part of finding deals is expanding your network and knowing what to look for before you take your money or somebody else's money and put it to work. So what really prevented me from growing my business by another billion dollars is not understanding how the system works. I'm now over $750 million in debt and I now use the system to my advantage. If you want to see how you can use that for your benefit and other people's money, just like we showed here, just click on the next video.
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Channel: Ken McElroy
Views: 295,625
Rating: undefined out of 5
Keywords: money, wealth, financial education, cash flow quadrant, investing, Wall Street, Main Street, banking system, inflation, personal finance, financial freedom, asset building, rich dad, financial system, savings, debt, investments, economic empowerment, wealth management, financial growth, economic systems, financial strategies
Id: 8UMuvERbZkY
Channel Id: undefined
Length: 6min 46sec (406 seconds)
Published: Wed Mar 06 2024
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