How To Manage Your Money Like Wealthy People

i'm in the nice cars having the nice watches having a nice home that's looking rich you can look rich and be broke if you keep growing it and you don't take up any money for yourself there's a chance that things don't work out you're gonna own a car that's really worth nothing because your cars aren't worth anything what's up everybody i am just playing singh from the minoritymindset.com where money minds rethink rich the thing that makes most wealthy people wealthy and what keeps wealthy people wealthy is financial education now i know yes some people got there by luck some people had rich parents some people won the lottery but the majority of people got there through the right financial education and by knowing what to do with their money and in this video i put together some of our best clips that way you know how to manage your money like wealthy people do let's get into it i grew up in a traditional indian household my parents are immigrants from a state in india called punjab and they're some of the hardest working people that i know but since i was a kid they always taught me the importance of working hard being honest and becoming successful now i don't know how it is for you but in any indian house the definition of success is very simple it comes down to a very simple equation success equals being a doctor if you become a doctor you are by default successful if you go out and you ask any indian mom out there the solution to becoming successful at anything is by becoming a doctor if you want to make a lot of money be a doctor you want to be happy be a doctor you want to be healthy be a doctor you want to get married be a doctor but now if we dive a little bit deeper and we define what the success is as financial success now things look a little bit different now i know there's a lot of different definitions of success out there being happy having a good family being physically healthy being mentally healthy having a purpose but for the purpose of this video i'm going to be talking about financial success so now if the goal is to become financially successful or wealthy or rich or whatever you want to call it if the goal is to become financially successful is the solution to become a doctor well becoming a doctor teaches you how to diagnose a sick person how to take care of a sick person how to do a lot of things if i was sick i would pay a doctor a lot of money to treat me but being a doctor doesn't necessarily mean that you're going to be financially successful being a doctor means you are qualified to treat other people at this point every indian mom watching this video is saying oh just please just saying that because he's not smart enough to be a doctor and yeah that might be the case but if you want financial success the solution is to be financially educated because if you're financially educated then you have the resources and the knowledge to use your money to become financially successful this is how the majority of people probably something like 90 of the population manage their money first you make money from your job you get a paycheck this could be twenty thousand dollars a year or two million dollars a year it doesn't matter how much money you make you make money from your job and the first thing you do is you put this money in your bank account and then you start spending this money so you got your home expenses you got to pay for your car you got to go buy some clothes you go on a vacation you spend some money and then if that's why i got this dotted line here if there's any money left over you save this money now some of you might be better than others at saving you might not spend too much money that way you can save more money but for the majority of people this is how their finances look you make money then you spend a lot of it and if there's anything left over some of that money gets saved if you're wondering oh just breathe how do you know how people manage their money well just look at the numbers one in five americans do not have five thousand dollars saved up for retirement and seven out of ten americans the majority of americans don't have one thousand dollars in cash saved up to protect them from an emergency what the minority people do is they start by smashing the thumbs up button below because the way the youtube algorithm works if you do not smash the thumbs up button then youtube is much less likely to show you and other people our financial news and education videos so if you hit that button i will very much appreciate it but what the minority people do is first they get paid so let's assume for this example that you're getting paid from a paycheck again now i'm gonna go right to left this time this time they start by saving money so you put some money aside for your savings first and then you invest some money so you put some money aside then you put some money to work for you and after you save and after you invest that's when you spend so it's a different order of events the difference here is the majority of people make money they spend their money and then if there's any money left that's when they save it and that's when they invest it wealthy people the one percent what they do is you make money and then you save it and you invest it first and then you only spend what's left after saving and investing because investing and saving is going to build your wealth investing is going to build your wealth even more savings is really protecting your wealth but you need to do these two things first that way you can build your wealth the simplest way to do this is to create a financial system one of the things you can do is to follow our 75 15 10 plan what that means is for every dollar you earn here so you make one dollar from your paycheck or your business or however you make your money every time you make a dollar it's going to flow down in this way out of this dollar 75 cents is the maximum you can spend 15 cents is the minimum you should invest and 10 cents is the minimum you should save when you do this now you're investing and saving your money and building your wealth first before you spend your money now if you're younger and you don't have a ton of financial responsibilities then this is your time to build what you should be doing is following our 50 30 20 plan that means now you're spending less money you're only spending 50 cents out of every dollar you earn but you're investing 30 cents and you're saving 20 cents because now this is your opportunity to build if you don't have a ton of expenses then invest and save more aggressively now that way you can build the foundation for your financial wealth this is where a lot of people put up a smoke screen they say oh you shouldn't worry about money like that money doesn't matter you should just work on being happy and yeah you need to be happy but money is a tool okay if you are a good person money will give you a tool to do more good if you are a bad person that money gives you a tool to do more bad the size of your paycheck matters but it's not going to determine whether you're going to become wealthy or not it's what you do with the money you make because if you make two hundred thousand dollars a year and now you're spending two hundred thousand or are you spending 220 000 with credit cards and loans well you're broke but if you make 30 000 a year and you're saving 10 and you're saving 15 you are setting yourself up for wealth but now in order to build that financial foundation there's five other things that i need you to do i'm gonna be talking about these five things first you gotta track your money you gotta know where every dollar you're earning is going then you need to build a financial shield to protect yourself then you gotta stop bleeding cash then you gotta put your money to work that way your money can make you money and then you gotta put fuel on the fire to amplify the system that way you can build your wealth even faster first you gotta know where your money is going because if you don't know where your money is going then it is going to disappear so you need to track how much money you're making and where your money is going how much money you're spending where you're spending it how much you're investing and how much you're saving you need to have a track of all your money and this is something that you need to do every month even if you're not a financial person you don't like talking about money this doesn't have to be too hard there's a ton of free apps out there that you can use to help track your money and help monitor your money i'm kind of old school i just use an excel sheet i've kind of built my own performer and my own kind of system where in the beginning of every month i write down all my excel sheets how much money i made and where all my money went because if you don't know where your money is going it is going to disappear in the business world what we say is if you can't track it you can't optimize it because if you don't know how well the system's running you can't improve that system well it's the exact same with your money if you don't know where all your money is going you can't improve where your money is going you can't improve your wealth because you have nowhere to see how your money is being spent once you start writing down where your money is going the second thing you need to do is build a financial shield because you need savings right now the vast majority of americans don't have a thousand dollars saved up but the reality is sometimes life happens and emergencies happen and you need cash to cover that emergency because if you don't have cash then now you got to go into credit card debt which is very expensive or you got to get a payday loan or you got to get a hard money loan and in all of these situations you are getting skinned alive by the lender and i don't want you to do that which is why you need to start saving some cash that way you have a financial shield to protect you from emergencies in general your goal should be to save something like three to six months worth of expenses in your savings account now this savings money is not money that you're going to use for a down payment on a house it's not money that you're going to use to go buy a nice car it's not money you're gonna use to buy a new cell phone this money is just sitting there to protect you from an emergency that way you don't have to go into credit card debt when an emergency happens so this should be your base goal three to six months worth of savings but if you really want to protect yourself when you want to be really risk adverse then you should have something like 12 months worth of expenses saved you don't really want to have too much more than that because saving money is losing money your savings accounts are not paying that much interest yet at the same time inflation is two or three percent a year what that means is the price of things the price of living is going up by two or three percent a year while your savings are just sitting there flat so if your savings aren't growing but the price of everything else around you keeps going up by two or three percent a year that means your savings are essentially losing value each and every day which is why yeah you need savings to protect you but you don't want to save all your cash because your goal should be to build your wealth and i'm going to talk about that in just a second if you're subscribed to our youtube channel you know that i love using my credit card to make transactions because anytime i use a credit card i get cash back i get points and i never carry any interest because i pay off my entire credit card balance in full every single month that way i get the perks and the rewards from the credit card company and i don't pay them any additional money in interest but a lot of people right now are getting skinned alive by the credit card companies because they're spending money on extra guac that they can't afford and now you're having to pay 15 16 17 18 interest on that extra guac which is skinning you alive and so what you need to do right now is stop bleeding cash you know it's always kind of funny to think about this because we talk a lot about investing on a youtube channel and i'll talk about okay if you get a seven percent return on your money this is what will happen or if you get a 10 return on your money this is what will happen and every single time i do that people will leave comments saying things like or where am i supposed to get a consistent 10 return but at the same time do you want to know somebody who is getting a consistent 19 return every single year your credit card company and you are the one paying it if you have credit card debt let me show you what i mean so i was reading on a nerd wallet article that many americans are taking more than 10 years to pay off their credit card debt so if your credit card company is charging you 19 a year what would happen if you invested that money and got a 19 return on your money if you could invest a thousand dollars a month and let's say you can get a 19 return on your money every single year now i know it's not very easy to get a 19 return every single year but your credit card company is doing it so if you invest a thousand dollars a month and you can get a 19 return on your money every single year and you do this for 10 years which is what a lot of people are taking to pay off their credit card debt this 1 000 a month investment would grow to over 420 000 over those 10 years if you could get the same 19 return on your money well your credit card is getting a 19 return on your money and so your credit card is becoming wealthy because of you while you are staying broke so what you need to do right now is you need to stop bleeding cash because you need to pay off your credit card debt as fast as possible credit cards are a tool if you know how to use them and you know how to use your money you can get a bunch of free perks you can get a bunch of cash back for doing nothing except making your regular transactions with a credit card if you don't know how to use a credit card then you are being skinned alive by a credit card company and you need to stop bleeding cash and you need to get rid of your credit card until you can figure out how to control your spending and right now you need to get out of credit card debt as fast as possible that means cut your expenses work harder at your job get a raise to whatever you got to do find some extra cash and put it towards your credit card debt because you got to stop bleeding cash as fast as possible because this is eating away at your wealth once you get here to number four this is where things get really fun because now you're putting money to work you can only work 10 12 14 maybe 16 hours a day consistently i mean yeah maybe some days you can work 20 22 hours a day but you can't do that consistently okay you're gonna get burned out but your money doesn't need sleep your money doesn't need to go to the bathroom your money doesn't need a vacation your money can work for you 24 hours a day seven days a week including holidays which is why once you got this extra cash you need to put it to work that way your money can earn you more money because you need your money working for you while you're sleeping this is what investing is all about you're sending your money out that way your money can attract you more money lots of people assume that putting your money to work and investing means that you have to throw your money in the stock market but that's not the only way that you can invest your money and it depends on what your risk tolerance is one of the simplest and easiest and the least risky ways to invest your money is just by paying down your debt if you have student loans that are costing you six percent a year in interest and you pay it off a year early well now you just got a six percent guaranteed return on your money for that year because now you don't have to pay six percent interest to the bank or your lender that six percent is what you get to keep in your pocket because you paid off your student loans a year earlier this doesn't have really any risk because if you pay down your debt early that's interest that you don't have to pay you should also be investing in yourself and your own mind because like everybody says you are your own best investment if you know how to use your money better you can use your money better and get a better return on your money now this takes time and it takes money but this can be one of the most valuable things that you do because if you don't know how to invest your money then you're not going to be able to get the best returns so this could mean reading books it could mean taking classes online it could mean going to seminars whatever it is you need to be investing in your education especially your financial education if you want to know how to use your money the right way that way you can get the best returns on your money the other kind of education is financial tuition and financial tuition is when you lose money by making a bad investment i'm a real estate investor and i have read a ton of books on real estate investing but some of the best real estate investing knowledge i got was by investing in a property which i call my nightmare property where i lost a ton of money it was my education it was the financial tuition i had to pay to learn how to be a good real estate investor because there's just some things that you can't learn in books there's just some things that you can't learn in courses so that's another kind of education where you just go out and do things because there will be times when you lose money that's just reality by the way if you do want to learn more about my worst real estate deal ever it was a nightmare property you know i read a lot of books that say you know every real estate investor has one really bad deal this is mine so i want you guys to learn from my mistakes this is not something to teach you in business books or even something they talk about in real estate books so i want you guys to learn from my mistakes you don't make the same mistakes as i did because it was very expensive let's take a look inside i walked through that deal on youtube and if you want to watch that video i will also link it for you in the description below then you have investing in assets this is your more traditional type of investing because now we're talking about investing in the stock market or investing in real estate now you're really just putting your money to work that way your money can attract you more money the way it works is now you're buying an asset you're buying an investment for the purpose of making money because you're buying something that you think will go up in value so if you buy a stock for 100 a share and then this company starts to make more money and the value of your stock goes to 200 a share now you just doubled your money you can also put your money to work for passive income because now certain stocks pay dividends what dividends are are cash payments is passive income that you get just for owning a stock that pays a dividend it's the same with real estate if you buy a home you can rent out this home for a thousand dollars a month and now every single month your tenants are gonna pay you a thousand dollars a month for living in your property and now even if you're sitting on a beach somewhere you're still getting a thousand dollars a month every single month from your tenants that are living in your property and you don't have to do any of the work because you put your money to work you use your money to buy an asset to buy this house and now your money through this asset is generating you passive income and the best part of all is now you're creating a new income stream that you're earning without having to physically go to work because now if you have income coming in from your stocks or if you have income coming in from your real estate this is money that you're getting without you going to your job now let me give you a quick disclaimer here because there's a lot of kind of misconceptions out there about passive income and investing with a lot of people on the internet saying oh you can become a millionaire overnight by just throwing your money in stocks or by throwing your money in real estate well it doesn't really work like that it is a slow gradual wealth building process where the more money you put in the better returns you will generally see and the more time you have the more money you will make now before we get into number five i do want to let you know where you can learn more about investing because our team puts out tons of articles on how to invest your money and build wealth through stocks and real estate on our website the minoritymindset.com and i'll also link an article for you up here and in the description below and that's when we come to number five putting fuel on the fire where now you understand how to use your money and now it's time to earn more money because you know how to grow your money even bigger the reason i talk about this now not earlier is because a lot of people think that the solution to their money problems is just earning more money but there's a little problem with that if you don't know how to manage your money with forty thousand dollars a year you're not gonna know how to manage your money suddenly at four hundred thousand dollars a year or even four million dollars a year that's why 70 of lottery winners become broke or bankrupt within just five years of winning the lottery and that's why 78 percent of nfl players who make a ton of money while they're playing in the nfl end up broke or bankrupt within just two years of retiring from the nfl making more money does you no good unless you know how to use your money first that's why once you know how to use your money it's all about putting fuel on the fire because now you have a financial system you've built your savings cushion you're no longer bleeding cash and now you're putting your money to work once you do that it's all about amplifying the system by earning more money and putting fuel on the fire the way you do this is going to depend on you for some of you that might mean asking for a raise or working to get a promotion something where you can get more money from your job for others of you maybe you're working a job but you also really like baking cakes if that's the case now you can start a side hustle where on the weekends you're baking cakes and you're selling it to your friends and your neighbors and all the people that like your cake and for others of you you might have an entrepreneurial bug where you just really want to start a business the whole purpose here is now when you make more money you don't just go out and buy a fancy car you follow your financial system you're going 75 15 10 or you're going 50 30 20. whenever you make more money you just take in that money and you're putting it into your funnel that way you're investing more money you're saving your money until you have the savings cushion built up and then you're spending a little bit more money the whole purpose of all of this is to manage your money in a way where you're paying yourself and you're building your wealth first before you go out and spend all your money and make all those companies around you rich before we get into the next clip i want to let you know that if you are interested in money management and investing our team put together an amazing guide that you can download for free that walks you through how to manage your money the right way and how to invest your money and how you can build your wealth over the long term so if you want to download this guide and start learning how you can be better with your money and how you can start investing for wealth you can download this guide for free when you subscribe to our daily newsletter and i got the link to how you can download this guide in the description below there are five ways for you to generate cash flow you have to use your money to buy one of these five things number one is to generate interest cash flow the way it works is you take your money and now you lend this out to someone else so you take a thousand dollars he lend it out to your cousin bunty now because then bunty goes to his favorite store gucci probably and now he's gonna go buy himself a new wardrobe and he's gonna pay you interest on the thousand dollars that he borrowed from you number two is royalty cash flow royalties are when you go out and you write a book and now if this book gets published and it is kind of being read by a lot of people now you're going to get royalties every time somebody buys your book profit share is now kind of like shark tank you go out and you find a nice company and you give them some of your money now this company starts to grow and every time this company makes a profit and they distribute it to their owners you get your share of the profit so if you own ten percent of a company and they make a hundred thousand dollar profit and they distribute this hundred thousand dollars you get ten thousand dollars as the profit share distribution number four is rent i love talking about real estate investing this is where you buy a property and every single month a tenant that's living in your property is going to pay you rent for living there and the number five is dividends this is purely passive now you can invest in a company or a fund that is going to pay you cash flow through dividends usually every quarter these top four are kind of passive they can be passive but they require some sort of work like with interest if you want to lend your money out yeah you don't have to really do any work after you lend your money out but it takes a lot of work to find somebody to lend your money out and you have to qualify them and make sure that you get paid if you don't get paid now it's more work on your end royalties if you want to get the royalties from selling a book you got to write the book first so it requires work profit share now if you want to be a venture capitalist or a shark on shark tank like that it takes a lot of work to analyze the companies and you got to help them grow so it requires work rental income yes real estate can be a passive investment but now you got to put in the work to find the property you got to build the real estate team and you got to do all the work dividend cash flow is purely passive once you find the right company or the fund that you want to invest in this money is going to come in and you don't get to do any work which is why in this video we're going to be focusing here how you can live a dividend lifestyle meaning use the cash flow from dividends to fund your life so that's what we're going to be talking about today but before i get into that i need you to do me a quick favor and smash that thumbs up button below and a quick word from a sponsor m1 finance if you are interested in investing your money m1 finance lets you do it automatically and passively so if you want to learn more and see how you can do it with m1 finance i got the link to how you can do that in the description below so if you want this cash flow from your investments this passive income to cover your investments you got to know what it's going to take and let's assume for the sake of this example that you want 40 000 a year to cover your expenses 40 000 a year is just over 3 300 a month so you want to make 3 300 a month in cash flow from your investments now we've got to figure out how to do that through dividends essentially what you got to do is you got to understand the different types of income there are so there's active income and then there is passive income what you're going to do is you go to work every single day and this is the active income that you're earning this is your earned income you go to work you get a paycheck you want to take some of this money and you want to put it towards your passive income towards your passive investments things that are going to pay you with cash flow in this case we're talking about dividends so every time you get paid you want to put a little bit of your paycheck the more the better towards your passive income and now in this video i'm gonna be going over how and how much to get this forty thousand dollars a year or thirty three hundred dollars a month that way now your dividend income can fund your actual lifestyle the way dividends work and i'm going to get more into this in just a minute but you can take your money and you can invest it into a company like mcdonald's now mcdonald's is a very established company and every year they have a whole bunch of profit a bunch of cash sitting in their bank account now when they have this cash in the bank account there's three things they can do with this cash they can save some of this cash for emergencies they can put this cash back into their business so they can grow faster or they can give this cash back to their investors people like you so what they do in this case is they say well we have so much cash in a bank account that we have no better use for this cash in our own company so we're just going to give it away to our shareholders in the form of a dividend so every year or actually three times a year mcdonald's sends out a cheque to all the shareholders people like you people who own their stock and this is what a dividend is so a dividend in this case is every three months you get cash deposited into your bank account because mcdonald's has paid you a dividend it's completely passive you don't have to do any work to flip burgers or any of that if you own the right shares now these companies will pay you with this cash flow the reason why dividend investing can be so attractive to some people is because you don't need a ton of money to start investing in dividend stocks now you can start investing in dividend stocks for as little as a hundred dollars you can compare that to investing in real estate where you're not gonna buy a property for a hundred dollars so if you want to start investing in dividends dogs start generating this cash flow from dividends it's a much lower barrier to entry you can start with 100 a month or whatever money you have and you can slowly let this compound and at the same time if you invest in a strong company hopefully the stock price will go up and as the stock price goes up hopefully the dividends will go up too because as a company makes more money and their profits grow they'll be able to send up bigger checks to you so if you invest in the right companies you can win in a few different ways because you'll get bigger cash flow every single year and the value of your stock your investment is also going up now if you really want to understand what it would take to replace your income in this case assuming 40 000 a year with dividends you got to understand what kind of dividends are out there now i do have to give you a little bit of a disclaimer here because investing has risks you are never guaranteed to make money when you invest you might even lose money so you should always your own due diligence and never blindly listen to a random guy on youtube and everything i'm talking about today are just examples i'm not telling you what to invest in i'm just showing you how the process works so you want to always do your own due diligence okay right now at the time of me recording this video mcdonald's is paying a 2.3 annual dividend yield now this can change with time but this is what it is right now if you wanted to invest money into mcdonald's right now and make 40 000 a year in dividend income based off of this dividend rate you would have to invest 1.7 million dollars in order to get 40 000 a year in passive cash flow through dividends and mcdonald's now i know this is going to seem like a lot of money but i'm going to show you how you can accelerate this eix this is edison international the electricity company they pay out right now at the time we're recording this video a four and a half percent dividend yield so if you wanted to get the same 40 000 a year in passive income through eix you would have to invest right around 888 thousand dollars into this company today based off of this four and a half percent yield to generate forty thousand dollars a year passively if you wanted to do it through ibm which is right now at the time i recorded this video paying a four point eight percent yield it's gonna cost you eight hundred and thirty three thousand dollars and eight tnt right now is paying a six point nine percent yield and if you wanted to get the forty thousand dollars a year it will cost you right around five hundred eighty 000 today now there's a couple things that i want to point out with this one this is not something that you have to just do today if you want to build this cash flow this dividend income it's going to take time and the way you want to do this is but every single month every time you get paid you want to put some money towards your investments and the best way to do that is automatically that way you don't accidentally forget to do it but you want to consistently keep investing your money into these stocks or whatever dividend stocks they're looking at if your gold is cash flow because now what you're doing is every month you're just building up this machine that's paying you maybe right now you're only making five dollars a month but over time that's going to grow to 50 a month then five hundred dollars a month and so you gotta understand that this dividend cash flow isn't something that just happens overnight it's something that takes time or something gotta build up so you gotta get into the habit of understanding that every time you get paid some of this money has got to go into your cash flow producing machine your dividend stocks that are going to pay you with income the second thing that i need you to understand is the risk because let's just say for the sake of this example that you look here at etnt and you say at t is paying the highest dividend so i'm going to invest on money only into that company and so now for the next 10 years you keep investing some money into at t but then att goes bankrupt if that happens now all of this money that you put into it would disappear because this company just went down the drain and now this wasn't your fault it was the executives at t that ran the company into the ground because you were just hoping to build this money printing machine but the executives at a t didn't do a good job so now you have to pay the price so you got to understand that there is risk here when you invest in individual stocks you take on all the risk so there are ways for you to mitigate that risk number one is by doing your research if you want to invest in individual stocks you have to keep up to date with the company you have to read the earnings calls you have to read the financial statements you got to see how this company is doing because if you start looking at a company and you see the revenue starting to drop you see the profits starting to drop you see people not liking this company so much then that's a red flag that you want to pay attention to but if you don't want to really do all the work then you shouldn't be investing in individual companies individual stocks then what you want to be doing is investing in funds that give you exposure to dividend paying stocks because there's something called etfs which stands for exchange traded funds which give you exposure to a whole basket of stocks so now instead of you trying to find the best companies to invest in you can invest in an etf which gives you exposure to a whole bunch of dividend-paying stocks that way now if one company goes bankrupt you're okay there's a whole bunch of other companies in there that are still paying you with cash flow with dividends so if one company goes down you don't lose everything so let's take a look at some etfs what you want to understand here is that not all etfs are made equal so when you're looking at etfs the way you do your research here is you can just research any etf you want on google and it's going to pull up kind of like a fact sheet about the etf and it will tell you which stocks are in the etf so you want to kind of just get an idea of which companies are in there because although you're not going to be doing the research on every single company and reading all the earning statements you want to kind of get an idea or a sense of what types of companies are in there i'm not going to be going over how to actually invest your money in this video so if you do want to learn more about how to do that and how stock market investing works you can read a free pdf on stock market investing it's a great guide that our team wrote that will walk you through what stock market investing is how it works and how you can start successfully investing your money in the stock market if you want to read that guide it's completely free when you sign up for a newsletter and i'll link it for you in the description below so if you're looking for cash flow and you invest your money into sdiv which is a high dividend etf then this right now at the time of recording this video is the 7.25 annual yield which means you would have to invest right around 530 000 today in order to get this 40 000 a year passively if you invest your money into vym which is a vanguard etf for dividend stocks this repays right now at the time we're recording this video a three percent yield which means you would have to invest right around 1.3 million dollars today in order to get the 40 000 a year the same concept applies here to etfs as it does stocks this is not something where you're just going to write a one-time check today if you really want to do this the right way this is where you're going to want to have your money going into your investments every single month or every time you get paid that way you can build this machine over time that is constantly paying you and if you invest your money into a good machine good stocks good etfs then not only is your machine going to become more valuable but your machine is going to be printing more money because the companies in your machine are making more profits so they're paying off bigger dividends a third very common way to invest your money for this passive cash flow dividends is by investing your money in reits a reit is a real estate investment trust and technically a reit is a stock but people look at stocks and reads a little bit differently just because stocks give you exposure to companies like mcdonald's and a t and ibm rates give you exposure to real estate so a real estate investment trust is a company that invests in real estate and they kind of get their own kind of special classification within the stock market because when you invest in a reit you are pretty much investing just for cash flow because the way reits work is they have a 90 rule which says that reads are required by law to pay out 90 of their profits to their shareholders people like you through dividends and so reits make money through rent and they have to pay 90 of the profits out back to you through dividends so reits pay out a whole lot higher dividends just because the whole point is to get this income through rent and to pay it out to you the advantage for you to invest in reits is that you don't have to deal with all the headache of trying to find the right properties dealing with contractors dealing with tenants dealing with property managers you're just investing your money into the company that manages and owns the real estate a couple example of reit etfs that give you exposure to a basket full of different reits again i'm not telling you what to invest in just examples are sch this is the schwab reit etf and then vnq this is the vanguard read etf when i say schwab and vanguard these are just different companies that create and manage these etfs if you're not sure what i'm talking about i already made a video where i explain what vanguard is and what vanguard funds are that video will explain all that if you want to watch that i'll link that video for you in the description below but sch right now at the time recording this video is paying 2.8 a year which means you'd have to pay right around point four million dollars today in order to get this forty thousand dollars a year and with vnq you would have to invest right around one million dollars today in order to get this 40 000 a year passively if your goal is purely just cash flow at this point you might be thinking all right well if i'm just trying to make as much cash flow as possible i should be looking for funds and stocks that pay off the highest yields and you might be thinking okay stocks are a little bit risky because i don't know or don't want to do all that research then i'll just put my money into an etf that's paying the highest yield the thing that you want to pay attention to is that you never you never want to make an investment decision solely based off of this yield right here because this yield can be deceiving this yield is based off of the current share price the current stock price that a stock is trading it and so if a stock is tanking then artificially a yield a dividend yield can look so much higher because the stock price is down and the dividend might not have changed yet and so you might buy into a stock or etf thinking that you're getting this amazing yield but what could happen is this etf or the stock is on the verge of failure which is why your yield looks so high so you never want to look and make your decision just based off of what the yield is that's one factor that you can pay attention to but you really want to look at the underlying fundamentals what companies are in the etf how strong are these companies what sectors are they in are these strong companies that will be around in the future same as stocks you're going to have to do a lot more research and kind of upkeep here because if you're investing in one stock or a couple stocks for the long term you want to make sure that the stocks are continuing to perform and continuing to grow with an etf you really just want to kind of get an idea of the company that is managing this etf like vanguard is one of the most reputable companies out there when it comes to etfs because they were like the pioneers of index funds and so you just kind of got to get an understanding of who is managing your money or what companies are you investing in because you want to make sure that this company or this fund that you're investing in is going to be around for a long time and it's going to continue to pay you for a long time in the future now when you're investing for cash flow you got to understand the drawbacks because we're investing in one of these companies these are big established companies and the reason why they're paying out a dividend to you is because they have so much money in their account that they don't know what to do with it so the best use of this money is just to pay it out to you the shareholder you can compare that to a startup company where this company a startup company might be using all of their money and more to grow as big as possible as fast as possible like you might have heard that uber was losing money for so many years they were not profitable why because they were spending every penny that they had to grow quickly and so not only were they spending all of their money they were also losing money because they kept raising more money getting into more debt that way they can use this money to grow bigger that way their company would become more valuable so a company like uber could see the stock price grow very quickly i mean they could see a twenty percent of fifty percent a hundred percent growth in revenue and it really wouldn't be too surprising because they're a startup company and they're trying to grow very quickly and so they're trying to see the stock price explode you can compare that to something like mcdonald's where you're not going to see a hundred percent growth in the revenue like that because this company is not in that same ballpark mcdonald's is very big they're very established they're just trying to slowly keep growing the straws and keep growing their income slowly that way they can just kind of maintain their dividends and maintain their growth so this is where you kind of really got to understand what your goals are because dividend companies are not going to give you that massive growth versus a startup company could but at the flip side a startup company also has more risk a startup company could fail it could go bankrupt i mean there's a lot of risks with investing in a startup company with these companies you have less risk i mean they can still fail there's less risk but you're not going to see the massive boom in the stock price that you could see with a startup company i mean over the long term yes you want to see the stock price go up but your goal here is just that consistent cash flow so you want to keep that in mind the second thing that you want to make sure you understand are taxes because now when you make this dividend income it's taxable the irs is always going to want to get their cut when you make money the way i want you to think of it is like a machine printing money and the way that you can get more machines printed money is by using more money to buy more machines so you have this one machine that's printing you money and anytime it prints your money you take this money and use it to buy another money printing machine now you have this machine printing your money and when it makes you money you use this money to buy another money printing machine and now this money machine is also making you money so now the first money printing machine is making you money the stacking money printing machine is making money and you take all this cash and use it to buy a third money printing machine and on and on and on this is what compounding is and this is what they call drip drip and a lot of stock brokerages where you're now reinvesting your dividends automatically the thing that you have to understand here is yeah you can take all of your dividends and reinvest it which is good it's a way for you to grow and accelerate your cash flow because now not only are you putting more money into your investments every single month but you're also using your profits from your investments every time you get paid to buy more shares that will be really just kind of building a big machine that's going to keep producing your more money year after year after year but the thing that you have to remember here is even if you don't take any of these dividends out and put them into your bank account or use them you're still going to have to pay taxes on these dividends so even if you reinvest all of your dividends you're still going to have to pay taxes on the dividends that you received even if you never use the dividends in your own personal account now this is assuming that you're investing in dividends in your own personal account if you're investing in dividend stocks throwing 401k or an ira or one of those tax deferred accounts then you don't necessarily have to pay taxes on those dividends depending on what your account is but if you're investing in your own personal account then you're going to have to pay taxes on your dividends even if you reinvest all your dividends now that's not a bad thing i don't want you to stop investing your money or reinvesting your money because you're going to have to pay taxes on your profits this is something i want you to be aware of so if your goal is to build up this machine that's paying you with cash flow that way you can live off your dividend income what you got to do is first figure out what you want to invest in stocks or etfs or which kind of basket of stocks and etfs second anytime you get paid now you're going to take a portion of your paycheck and automatically invest it into the stock or etf that you want third now when you get paid through your dividends you want to reinvest these dividends back in to your stock or etfs that way your dividends are building you more machines that are producing you more cash flow now not only are you investing more money every single month but your money that you're making is also going back into your machines to buy you more stocks and more etfs and fourth you just got to remember that you're going to have to pay taxes on the dividends that you made even if you don't get to put them in your own personal bank account today if you do this you're going to be building up a machine that's going to be building up your cash flow and yeah it's going to start small but over time you're going to start to see this dividend machine grow faster and faster and faster because you'll have more money going into dividend accounts and your dividend accounts are going to keep producing more money which is going to go back into them buying more shares that are paying you with dividends [Music] first things first in case you're wondering i was replacing the light bulb in my bathroom and somehow as i was unscrewing the light bulb the light bulb shattered and it slipped my finger which is why i have a band-aid on but everything's okay we're back on youtube no delays there i talked about the things that you need to do with your money as soon as you get paid that way you have a proper financial system if you haven't seen that video i'll link that video for you in the description below but in this video i want to talk about the seven things that you need to be using your money to buy that way you can actually build wealth this goes way beyond just having a budget and knowing how to spend your money this is what you need to be buying and using your money for that way you have the financial planning tools that you need that way you can actually become wealthy money can't buy you happiness but money can buy you a nice car and money can buy you a nice home for your family and money can buy your spouse a nice vacation and money can buy you some extra guac but before you can get the freedom that money can buy you you need to know where your money needs to go before you put your money towards all of your wants and we all know that guacamole is definitely a need that's why in this video i'm going to be going over the seven places that your money needs to go not including guacamole that way you can build your wealth but before we get into that i need you to do me a quick favor and smash that thumbs up button below without cutting your finger the first place your money needs to go is obviously your basic needs this is your car your house your food your water your basic necessities that you need in order to survive the thing that you really got to do here is you got to really draw a line to understand where your real needs are and where your wants start my cousin's friend just graduated college and he got this new position in phoenix so he flew out to phoenix got this new job the only problem was he needed a car to get to him from work and he didn't have a lot of money to buy a new car so he talks to a cousin about what he should do and they talked about getting a used car that we don't have to blow all of his money to get a new car or blow his future money on a new car anyways so he's looking at used cars and he ends up going to the bmw dealership call us at my cousin and he says guess what i'm buying you four series so now this guy let's call him bunty 2.0 needed a car but instead of buying a car with cash that he could afford that we don't have to worry about payments he ended up going to the bmw dealership and he bought himself a four series right now he's going to be paying five to 600 a month for at least the next three years to lease out this car so let's take a look at this you need a car and i think he put down four thousand dollars when he leaves the bmw and so you have a couple options you can go out put down four thousand dollars and lease a car and now you're going to be paying right around five to six hundred dollars a month let's just say five hundred dollars a month and this is now a payments game that you're starting once at least a car at the end of the lease what are you gonna do well you're gonna want to lease another car or buy another car because at the end of the lease all these car companies are going to tackle a whole bunch of fines and fees if you don't take another car from this company so it's very unattractive to go out and buy a different car somewhere else or buy something that you can afford with cash so when people start this payments game they stay on this payment scheme forever so now let's assume that now you're going to be paying this 500 a month every month for the next 30 years after 30 years what's going to happen you're going to be left with nothing even if you own your car after 30 years you're gonna own a car that's really worth nothing because your cars aren't worth anything but if you took this four thousand dollars and you bought yourself a used car with cash a good working condition car now you have this four thousand dollar car you have no monthly payments what you can do is instead take this 500 a month and invest it and if you took this 500 a month and you invested it and you could get a reasonable 7 and no return on your money so you're just throwing your money in the stock market and you're hoping to get a little bit below average return so we're not even talking about beating the market we're even trying to meet the market we're talking about a little bit below average you just get a 7 return and you do this for the next 30 years you're gonna have something like six hundred thousand dollars in your account on the side just because they used this money to pay yourself instead of using this money to pay your car company and so this is where you got to decide what's your need versus what's your want you need a car you just want a bmw now don't get me wrong here i want you to drive a nice car i love nice cars i really like bmws but you got to decide what your goal is right now are you trying to flex on instagram or are you trying to become wealthy because these two things are going to give you two financially different results if you just had a flex on instagram then sure blow your money on a car but if your goal is to become wealthy then screw the car right now go invest this money into yourself and buy something beat up that is working that way you have this money every single month that you can invest into yourself that way you can build your wealth once you are ready then go out and buy yourself whatever car you want because you can afford it without worrying about the price because now you're building that wealth or you've already built that wealth this is where you got to really dig deep and figure out what do you really need and what do you just want because every dollar you're spending on things that you don't need is a dollar that you cannot invest back in yourself now you got to understand here also the goal is not to live small for the rest of your life i don't want you to be the super frugal person who's just pinching pennies because at the end of the day a pen you saved is just a penny i just want you to understand that right now the easiest way to have some extra cash is just by not spending all your cash and so if you can understand how to live below your means that way you have some extra cash now you can put this money to work to help build you wealth now again i don't want you to just live small i want you to work to grow the pie because there's a limit to how many pennies you can pinch and how small you can live but there's no limit to how much money you can earn but the first step to being able to build this wealth is you got to stop blowing all their money on things that you don't need that way you have money to buy things that will actually build you wealth the second place your money needs to go is towards your savings but you got to make sure you're doing this the right way growing up i was always told that if i wanted to become wealthy the way you do that is by making a big salary and then you save as much money as possible turns out that's a big lie you will never become wealthy by just saving your money when you save your money your money is just sitting flat it's not growing but at the same time the value of your savings and your dollars are losing value and being diluted because of inflation that's why when we talk about saving money you want to make sure you're saving your money the right way in the smart way not the majority mindset way for the majority of people saving money is the path to freedom because when you save your money now you have this big bank account hopefully that you can now use to go and buy things with the only problem with that is if you could go out and save a hundred thousand dollars you might feel rich but a hundred thousand dollars today is not gonna buy you what a hundred thousand dollars could 50 years ago and a hundred thousand dollars and fifty years will not be able to buy you what a hundred thousand dollars can today fifty years ago if you had a hundred thousand dollars you would be able to buy what six hundred thousand dollars can buy you today and in fifty years from now a hundred thousand dollars depending on what inflation is might only be able to buy you half or a quarter of what a hundred thousand dollars can buy you today when i save my money i'm only saving money for three things i'm saving money for emergencies i'm saving money for a big purchase or i'm saving money for an investment you gotta have a savings account with some cash in there because when an emergency happens because that's life you want to make sure you have cash to fall back on that when your car breaks down or your ac breaks you don't got to go into debt to fix the problem a good savings fund should have something like three to 12 months worth of expenses so depending on what your risk tolerance is that's where you kind of want to have the savings fund be second you want to save for big purchases if you want to buy a brand new car or you want to buy yourself a new home when you need a down payment or you want to buy a big tv these days cost money and you got to save money in order to do that you have to treat these two savings accounts differently because the last thing you want to do is use your emergency money to go out and buy a tv do not mix these accounts together because these need to be separate and third you should save your money for investments i have a separate account where i have cash that i'm waiting to invest i'm always looking for investment deals whether it's on the stock market or whether it's real estate i want to find a good opportunity this is the cash that i use to go and buy it i'm not using my emergency money i want to use my investment money for that which is why you want to keep this separate and this brings me to number three the third place you need to invest your money is in your investments your investments are things that are going to pay you for owning them because now when you have some extra cash there's a couple things you can do you can go out and go shopping buy yourself a brand new wardrobe which isn't going to make you any money or you can take this extra cash and you can invest it into a company or invest it into a property that is going to pay you for owning it at the very bare minimum you have to own some stocks or real estate if you want to invest other places like crypto and forex and commodities gold and silver fine but make sure you at least own some stocks and real estate the whole idea behind investing your money in stocks is instead of you taking your money and going out shopping in the mall and spending all your money in stores you're taking your money and you're buying a piece of the store company that way as stores make more money so do you it's essentially a way for you to stop being just a consumer and spending all your money to make everybody else rich and for you to start being a producer that way now when companies make money you're one of the people that's benefiting because if the company makes more money so do you but real estate is a little bit different with real estate you own something physical and tangible because when you invest your money in the stock you just get a paper certificate saying that you own shares of a company but if the company goes bust then you owe nothing real estate on the other hand when you buy a property you own land you own a building you own bricks you own windows so you own something that you can see feel and touch and it creates income because if you buy a property you can have a family live in there and they'll pay you rent every single month for living in your property so now you own something real that you can see and feel and you're creating income and the whole hope is if you're buying a property in a good area the property value is going to go up and so will your rents so you're creating income and you own something physical and tangible stocks and real estate are both good investments i have my money in both i prefer real estate just because i like the income that i can create and i like the idea of owning something real but i also have money in the stock market and so you got to really just figure out what your goals are and what helps you do that the fourth place that money needs to go is asset protection because as soon as people realize you have money they're going to try to take their hands and put it in your pocket and take some of your money and keep it for themselves you don't want to let that happen which is why you want to put up a shield asset protection to protect yourself and your family now while i am an attorney i'm not your attorney so if you have specific legal questions make sure you talk to a professional in your area first thing you got to do is you got to have some estate planning the whole idea behind this is if you're building wealth you're going to have money and when you die you got to know where this money is going to go because if you do not tell this money where to go then your family is going to be fighting for who gets the money if you want to avoid those fights plan ahead do some estate planning there's a couple things you can do you can get a will you can get a trust it's going to depend on what your financial situation is as to what is better for you but the whole idea behind a will then a trust is you get to tell your money after you die where your money is going to go if you don't do this type of estate planning when you're alive then the government's going to come in and they're going to decide where your money should go you never want the government to decide where your money should go so do this type of estate planning that way your family is not fighting for your money in the future you also got to protect your assets by having insurance nobody likes paying for insurance but insurance is a small price you pay today to protect you against a big headache in the future is it going to be things like car insurance health insurance home insurance life insurance i know it's not fun to pay for all of these things but if something bad were to happen to your car your home your health your life then your insurance company would come in and they would pay you or your family a big check that your family is at least financially okay things like car insurance health insurance home insurance are pretty obvious because if your car burns down or if your house lights on fire then the insurance company is going to come in and they're going to give you a check to go out and buy a new home or a new car but life insurance isn't always straightforward the whole idea behind life insurance is if you die within your life insurance period then your life insurance company will give your family a big check that way at least your family will be able to survive financially even if you're not there because the last thing you want is for you to be the breadwinner for your family and then you're no longer there and your family cannot survive anymore without you so they have to put up a gofundme page to raise money to pay for your funeral costs and to pay for your basic living costs the good news about life insurance is it doesn't have to cost you a whole lot of money like if you're a healthy 30 year old guy you can get a million dollar life insurance policy for less than a dollar a day i'm not going to go too deep into life insurance in this video because i've already talked about it on a youtube channel but if you do want to see how you can get a free life insurance quote i've got the link to how you can do it with our sponsor policy genius in the description below the fifth place your money needs to go is in your education even if you think you're done with school growing up i always thought the education meant school nowadays for me education means everything outside of the classroom one of the easiest ways to fast track your financial success is just to keep learning because the more you know the more you can do my education comes from five different places books classes experts experience and mistakes i'm not a big fan of actually reading books but i go on a five mile walk or try to go on a five mile walk every morning and this takes me about an hour and a half and during my walk i like to listen to audiobooks i buy quite a few online classes some of them help me personally and some of them help our business grow you can learn from experts on youtube or podcasts you can hire consultants when it comes to learning from experience one of the core values and minority mindset is fast is better than slow and the whole idea behind that is instead of spending all your time just thinking about what to do go out and implement it and learn from whatever you're doing and even if you make a mistake which is the fifth way i learned you can learn way more from your mistakes than you do your successes i made a video on youtube where i talked about my worst real estate deal ever that was the only property i ever lost money on but that money that i lost was really just like tuition into real estate investing because i learned so much about investing in real estate from that one deal learn as much as you can by reading books watching youtube videos and taking classes that's good but it's never going to replace experiential learning you have to go out and you got to just put yourself out there because you're always going to run over hurdles that other people have not and you got to figure out how to overcome them the sixth place your money has got to go is your health and this isn't what most people think about when they think of health if you've ever heard me talk about my quadratic triangle i believe that there are four fitnesses in life four places that you need to be fit if you want to live a happy and successful life the bottom is physical fitness then mental fitness and spiritual fitness and at the very top it is financial fitness if you want to invest in your health you need to be investing in your physical health your mental health and your spiritual health everything else is about your financial health starting at the bottom with your physical health investing good food and a gym membership or some workout equipment look i'm not a doctor sorry mom and dad but the best medicine is being proactive and taking care of your health i know you're working hard to get that bonus and feed your family and go on that vacation but you gotta take care of your body too because this is the only one you got second is your mental health if you are not happy it does not matter how much money you have it does not matter how successful you are you will never be able to appreciate the things you accomplished and so if you have this anxiety or depression and you are not happy get it taken care of go into therapy get some counseling go into rehab whatever the cost is pay it because if you are not happy and you're not able to live with yourself then it does not matter how successful you are because your mind is going to be holding you back so take care of your mental health because that is going to be a pillar for the success of your whole life and the third part of this is your spiritual health and when i say spiritual health i don't just mean religion i mean it could mean that but it's really what is your purpose do you really feel like you're on this earth to help underserved people if it is go out and give some money to charity or go give summer money to your purpose figure out what it is that's driving passion that wakes you up every single morning and puts some money into that because if you do not feel fulfilled if you do not feel like you have a purpose then you're gonna have no reason to get out of bed every single day and the seventh place that money needs to go is to your family now when i say your family i don't mean that when your cousin bunty goes and blows his money at gucci then he goes and asks you for another two thousand dollars and you just give them this money i mean taking care of your family you know when you're on your journey to build wealth you're gonna do whatever you can to invest every single penny you can because you understand that this money invested is going to be able to make you a whole lot more money in the future and as you do that you're going to have to make sacrifices as a family maybe you don't get the nice car maybe you don't get that new home maybe don't go on a vacation right now but as you really start to build this financial foundation and this financial wealth reward your family take your family and your kids on a nice vacation buy your spouse something nice because of what they put up with i know it is hard building wealth you got to make sacrifices but as you start to see the success don't just live frugal in the sense that you never enjoy your money for the rest of your life money only has value if you spend it and support the people that supported you so as you start to build your wealth make sure you take care of your family too [Music] the whole idea behind compound interest is you're going to invest some money today this money is going to grow and now you have your money working hard to make you money and the money that your money made working hard to make you money so it's almost like your money is having babies and your money is just going to keep compounding and growing which means you have more money working hard to make you money even if you're not investing your money in the traditional sense you should hopefully still be earning this type of compound interest because if you go to work every single day you're compounding your knowledge and your skills and so the longer you go to work the more skills you're going to learn and the more valuable you're going to be as an employee that's why as you get older your pay should hopefully go up too because you're compounding your knowledge you're compounding your skills and now you're more valuable which means you should be getting paid more money it's the same concept with your money except more money doesn't give you more skills it just gives you more power like this 100 bill doesn't have more skills than this 20 bill does it just has more power because assuming that one dollar will buy me a machine that's going to make me a nickel now with this 100 bill i can buy 100 of those machines with this 20 bill i can only buy 20 of those machines so i'm going to be able to earn more nickels with this 100 bill than this just because i got more power with this piece of paper than this one but this is where compounding becomes so powerful because every dollar i earned will buy me another machine that makes me a nickel and i need 20 nickels to earn a dollar this 20 bill will get me 20 nickels which will buy me one more nickel making machine this 100 bill will earn me a hundred nickels which will buy me five more nickel making machines so i'll be able to earn more nickels with this just because i got more buying power the more dollars you have the more dollars your money is going to be able to make and the longer you let your money sit there and invest and compound the more your money is going to be able to grow that's why albert einstein calls compound interest the eighth wonder of the world because now your one is working hard to earn you more money and every time your money does that you're gonna have more money that you can send out to work hard and earn you more money so it becomes a system almost like this machine that's just working to produce you more money and anytime you produce more money you can buy another machine that's going to be working to produce you more money you don't need a ton of money to start but the longer you have the more your money is going to be able to grow which is why you're going to see the biggest returns towards the end of your compounding like even if you start with just one penny and you can double your money every single day day one you have just a penny in day eight you have a dollar by day 21 you have ten thousand dollars now your money is really starting to grow and by day thirty you're gonna have over five million dollars and he started with just a penny now i already know what you're thinking but just breathe if it was so easy for me to double a penny i'd already be doing that right now now i know it's not easy to double your money every single day and that's not the goal but you can do this over time there's a couple different strategies that you can follow to compound your money and really build your wealth over time there's an active strategy and a passive way i'm going to be going over this but before i do i need you to do me a quick favor and compound that thumbs up button below actively compounding your money is literally what the word says this you are being active and you are buying something selling it and now you're using your profits to go buy something else you see this all the time in real estate you go out and you buy a hundred thousand dollar property you renovate it whatever you fix it up and you go sell this property for a hundred and fifty thousand dollars now instead of going and buying another hundred thousand dollar property you go out and you buy a hundred and fifty thousand dollar property and you renovate it and now you sell it for 225 thousand dollars and so slowly you are growing your money and compounding your money because you can do bigger deals now you can do two deals at one time you can do 200 000 deals and hopefully sell both of these for 150 000 each and now you're just compounding what you're doing you're slowly growing what you can do because you make some money and you take your profits and you reinvest it into whatever it is you're doing this is exactly what i do on youtube anytime somebody watches our videos on youtube i get paid thank you for your penny now when i get this youtube money i can take all of it and go out and buy myself some new exotic cars go get myself a new gucci wardrobe and go enjoy some fine dining at chipotle with some extra guac but what i actually do with this money is i reinvest this money back into our business that way we can grow our business bigger i'm reinvesting it back into our blog i'm reinvesting it back into our newsletter and i'm reinvesting it into an app that we're making i'm actively working to compound this money by sacrificing some of these luxuries today that i could buy by reinvesting this money back into the business that way i can grow the whole pie bigger when i was in college i started a cell phone accessory business with a friend of mine and we didn't have a ton of money and we wanted to start selling these like cell phone battery packs and at the time we only bought like 10 of them because that's all we could afford and so we bought 10 of these battery packs and we sold them and then we took this money that we got and our profits and we went out and i think we bought 20 battery packs and then we bought 50 and then we bought a hundred and so it was like a slow compound where we took whatever money we had to buy these battery packs we sold them then we took this money and our profits and we compounded it and that way we were able to buy more sell more buy more sell more and so you don't get to enjoy the profits when you're compounding it like this because if you're taking all of your profits and reinvesting it you're actively compounding it to grow the whole thing bigger when you do this the hope and the whole idea is you're gonna start off with something small but a hundred dollars or a thousand dollars and you're gonna grow into something a little bit bigger you turn a thousand dollars into two thousand dollars now you're gonna reinvest the two thousand dollars to turn into four thousand dollars and the four to eight the eight to sixteen and you're gonna slowly keep growing it there is a risk though because if you keep growing it and you don't take out any money for yourself eventually there's a chance that things don't work out and now you grew your one thousand dollars into a hundred thousand dollars or a million dollars and then things fail and if you didn't take out any money for yourself now you're left with nothing so if you're doing this type of active compounding you really just gotta find the right risk balance for you because anytime you pull a dollar out that's a dollar that you cannot compound but if you keep the dollars in there then you take on more risk i mean this is one of the things that made elon musk so financially successful because in the early stages of his career when he would make 25 million dollars he would reinvest all of this money back into his business and he would leave nothing for himself because he wanted to compound and grow his dreams and his wealth by taking every dollar he had and throwing it back into his beliefs the second way you can compound your money is the passive way and this is what a lot of people think about when they think of compound investing because now what you're doing is you were taking the money and you're putting it into an investment you're gonna let your money grow and anytime your money makes money you're gonna reinvest that money back into it that way this money that you have growing is gonna keep growing even if you don't add money into the pot because your money is growing and this new money is gonna be working to make you money too when i was in high school anytime we talked about compounding or investing your money in my math class the example that my teacher always gave me was investing your money in a cd in the bank or a savings account so the way it works is you put your money in the bank either in a cd or a bank account and then your money's going to grow and as your money sits there it will compound and grow because now this money that your money made will grow even more but the interesting thing about this so be right bank account you're not going to get a very good return especially nowadays uh savings account nowadays is gonna pay you like point one percent if you're lucky and a cd is gonna pay you one percent if you're lucky so if we look at this where you get a one percent return on your money and i'm being very generous here it is gonna take you a long time for you to double your money at this rate keeping your money in the bank is going to take you 72 years to double your money so you're not building wealth in this lifetime maybe your great great great great grandkids will have some decent money to play with if you're really looking to compound your money and grow your money then you need to be putting your money in assets so this would be things like the stock market if you're investing in your money in the stock market the goal is to grow your money by investing in companies that you believe in because over time these companies are going to make more money which would make the stock price more valuable for you now if i come back here to active if you do a business or flipping like we talked about there's really no limit or kind of a baseline to how fast you can grow your money here i mean it's not super unreasonable to see a 100 growth in a year so it's really kind of uncertain as to how good of returns you'll see it just depends on what it is you're doing and how good you are at it so you know there's really no baseline here the stock market on the other hand has gone up by between eight to ten percent a year historically so even if we stay on the low end here eight percent you're going to be able to grow your money much faster and the thing you got to understand about the stock market is there's a couple different ways that you can make money you can make money through appreciation which is when the price of your stock goes up and you can also make money through dividends which is when the company that you invest in literally just gives you a cash check so if you can grow your money by eight percent a year in the stock market you can double their money every nine years that's a whole lot better than 72. now if we kind of really look at compounded get money this is where a lot of people assume that you have to invest in dividend bank companies which are companies that pay you cash payments that way you can compound your money because in that case when you get this dividend then you could reinvest this dividend back into the stock market and buy more shares that way now your money is actually growing so you invest in a dividend paying company this company gives you some cash then your money automatically gets invested that way you can own more shares and now as you own more shares you're going to get more dividends as you get more dividends you can buy more shares so it creates this reoccurring cycle of growth and compounding this dividend reinvestment strategy is a great way for you to build your own wealth because now any time you get paid you're going to automatically reinvest this money if you want to learn more about how to do that our team broke this down in an amazing article on our website where it shows you one how to do this reinvestment how to invest in companies and how to find a good brokerage that does this so if you want to learn more about how to do that i'll link the article for you in the description below but what i also want you to understand is that not every company pays a dividend the only companies that really pay dividends are really you more established and more mature companies because these are companies that at the end of the year they have so much cash in their bank account they have no better use for their money because if they could reinvest this money back into their company and grow their company bigger then they would probably do that but they have so much cash where they're just like you know what let's just start giving it away to our shareholders because we have no better use for this cash and so people assume that the only way to compound their money is to invest in dividend-paying companies because these are companies that are giving you cash and when you get this cash you can reinvest it but you can also compound your money by investing in companies on the stock market that are reinvesting their profits if you find more of a startup company that you really like and you really believe in and you think is a good value and you invest in this company and this company anytime they make money they don't give it away in dividends they take this extra cash and they reinvest it back into their company so they're really not making that big of profits like on amazon during the early years about being public never made any money because any time i made money and reinvested it back into the company if you invest in a company like this then your money is still compounding because you own shares of a company that's using all of its money to grow itself and so while you're not getting this cash payment and accumulating more shares your shares become more valuable because of this compounding because the company that you're investing in is compounding all their money because they're taking all of their profits and reinvesting it and there are pros and cons to both because this type of investing we invested more of a startup type company has more risk because there's a chance this company will fail like we talked about here if you're actively compounding your money which is what this company is doing there's a chance that it could fail and so yeah they're reinvesting all their profits and they're doing everything they can but if this strategy fails then there goes your investment but on the flip side with these dividend investments because these dividend paying companies are typically larger and more mature you're gonna have a safer investment which usually comes with a smaller return so you might not see the stock price go up as fast and your average dividend is typically somewhere in the two to four percent range it really depends on the company so it's not anything huge and hopefully it will go up over time but you just gotta kind of understand where you want to be it comes with lower returns here higher potential returns here but more risk the second thing is with dividends anytime you get paid a dividend you have to pay taxes on this dividend so while you take this dividend and you reinvest it you still have to pay taxes on the money that you made even though you don't actually get that money in your bank account because you're in this case reinvesting that money another way that you can compound your money is by investing your money in real estate this is my actually favorite place to invest my money because not only do you get passive income if you do it right you will also get the appreciation in the property and so with real estate when i invest my money i'm looking for a seven percent annual return on my money cash on cash minimum ideally something closer to eight percent but seven percent is my real minimum now the thing that you got to understand here is that if i get a seven percent return on my money it's gonna take me ten years to double my money but in this case the seven percent is a cash on cash return that i'm getting every single year in my pocket so if about a hundred thousand dollar property that means every year i'm making at least seven thousand dollars in profit hopefully over time this is going to go up if rent prices go up but that means i'm making seven thousand dollars a year and now what i can do is after 10 years i will have this cash in the bank that i can use to go and buy another property or i can just take my own cash go out and buy another property and supplement it with this money that i'm making from real estate the reason that real estate becomes so attractive now on top of this is because not only are you getting this cash flow but if you're buying your properties in a good area where people want to live then you're also going to see the property value go up too so i buy this hundred thousand dollar property and every year i'm getting seven thousand dollars a year in passive income but over time this property might go up in value to let's say two hundred thousand dollars and now if it comes time for me to sell this property i sell it for two hundred thousand dollars i can do something called the 1031 exchange it's a little loophole in the real estate world where now i can take all 200 000 pay zero dollars in taxes and go out and buy a 200 000 property that's going to pay me with more passive income and so when i try to do that in the stock market with dividends the first thing i had to do was pay taxes on my dividends and then i could reinvest these dividends with real estate if the property value goes up now i can sell the property pay no taxes today on those profits and go out and buy myself a bigger property that's going to pay me with more money plus even on the passive income the cash flow that i'm making from real estate this money that i'm getting here there's a lot of tax breaks that i get with real estate that i don't get with the stock market so even as i get the seven thousand dollars a year in passive income i don't have to pay taxes on all seven thousand dollars because there's other tax deductions that i can take like something called the depreciation tax deduction which says that i get to get a deduction because my property is one year older so happy birthday to your property you get a tax break so from a tax perspective you get more benefits here from real estate but real estate does come with its own downfalls because now you have to deal with more people like when you're investing in stocks you're not dealing with anybody you can go out and buy shares of amazon or lululemon or chipotle and mcdonald's and not have to deal with a single person you can do this right off your phone you want to go out and buy a real estate property you got to have a real estate agent you got to have a property manager you got to deal with a contractor you got to deal with an attorney and you got to deal with tenants and so if you don't want to be in that game the stock market is better for you plus with real estate you're in charge you're the one that actually has to make sure that your property is generating income and it's more work on your end because now you got to be the one that's negotiating the deal and if your tenant doesn't pay or if your tenant damages the property that's the cost that you have to pay and of course the most obvious thing is that it takes a lot more cash to start investing in real estate than it does to start investing in the stock market i mean you can start investing in stocks with as little as a hundred dollars but if you want to go out and buy a property you can't do that for a hundred dollars at least not a good property now while it's your decision on where you want to invest your money here here or here the idea stays the same that you need to compound your money the whole idea behind that is anytime you make money you want to reinvest at least some of it that way your money is growing and the money your money made is growing that way you can grow your money quicker and quicker and quicker over time because the real secret to building wealth is investing yes we talk about that all the time but if you really want to grow your money quicker you got to compound your money which means you got to have more money in the fire that's burning to make you more money but i guess if you're burning money that's probably not what you want to be doing so bad example but you got to have more money working to make you more money before we get into the next clip i want to let you know that if you are interested in money management and investing our team put together an amazing guide that you can download for free that walks you through how to manage your money the right way and how to invest your money and how you can build your wealth over the long term so if you want to download this guide and start learning how you can be better with your money and how you can start investing for wealth you can download this guide for free when you subscribe to our daily newsletter and i got the link to how you can download this guide in the description below [Music] there's a difference between wanting to become wealthy and actually wanting to become wealthy everybody says they want to be wealthy i mean who doesn't who doesn't want to have an extra million dollars but if you want to actually be wealthy then you gotta actually want to become wealthy and do the five things that i'm gonna be talking about in this video that we can actually become wealthy you can really see the difference between somebody who wants to become wealthy and somebody who actually becomes wealthy by your actions like if you get a raise and you make an extra thousand dollars a month now what do you do well if you just want to become wealthy and you're making this extra money you're gonna say oh well let me celebrate a little bit right now and let me start investing later because i gotta enjoy my life right now so you got this extra thousand dollars a month and you have this plan where you want to start investing and you want to start building your wealth but you kind of want to enjoy this money right now because you only live once right and you're only young once so what do you do you buy yourself a nice car you go on a nice vacation with your family and you go to chipotle and celebrate with some extra guac but if you actually want to become wealthy then what are you gonna do they're gonna take all of this thousand dollars that you're making extra and you're gonna put it towards your investments right now that way you can achieve this wealth sooner because you understand that this is a short-term pain that you're going through that way you can achieve that long-term financial freedom the thing that everybody gets confused here is they assume that if you want to become wealthy you have to have a hundred thousand dollar a year job or quarter million dollar a year job or a million dollar a year job but it doesn't really work like that there's a lot more to becoming wealthy than just having a big salary i mean it can help but if you don't know how to use your money or if you don't have the right mindset or if you don't know how to pay yourself or if you don't have the right patience then it doesn't really mean anything it's all about wasn't here before you make the money if you actually want to become wealthy there are five things you need to do now what you got to understand is that these five things are not easy so if you're not willing to go through short-term pain then it's not going to work for you and if you are going to get caught up in your feelings and get triggered anytime something is hard or something goes wrong then it's not going to work but if you're willing to go through the short-term pain and if you're willing to put in the sacrifice and you follow these five things then you will be able to become wealthy the first thing you got to do is have the right mindset about money i bet you thought i was gonna say smash that thumbs up button below didn't you having the right mindset is fitting because you know we are the minority mindset which is all about having the mindset of thinking different than the majority of people but when it comes to having the right mindset about money and building wealth the first thing you got to get right is understand the difference between becoming wealthy and being rich now i know some of this is just syntax but when people talk about being rich a lot of times what they talk about is your appearance the way you look having the nice cars having the nice watches having a nice home that's looking rich being wealthy is more about being free having the time to do whatever you want because you have the financial freedom you can look rich and be broke i mean you can have a nice car nice clothes a nice home going nice vacations but still be living paycheck to paycheck and have really no free time for yourself because you have to work your butt off in order to make the payments on all the things you have being wealthy is being able to live your life financially free without having to worry about the payments because you understand how to use your money you understand how to invest your money you understand how to grow your money so you're able to live your life the way you want and have the time to do the things you want because you have that wealth my goal is for you not just to have all the nice things i mean i want you to have the nice things that you want but i want you to be able to afford the nice things without having to worry about the payments that's why i want you to understand how to become wealthy that way you can make those sacrifices today that way you can buy all the nice things you want without worrying about the price if you do want to learn more about the difference between being rich and being wealthy i already made a video talking about that so if you want to watch that i will link it for you in the description below the second thing when it comes to your mindset is if you want to become wealthy you got to stop hating the idea of becoming wealthy i mean we are living in this culture nowadays where it is just commonplace to hate people because they are wealthy why because they're wealthy but if you really want to become wealthy yourself instead of hating the person that has become wealthy you need to be one of the people that is learning how they became wealthy that way you can apply those strategies and techniques to your life hate it or love it the reality is we live in a society where the producers are the ones who are awarded and the consumers are the ones that pay the price so if you really want to become wealthy you got to understand this shift and you got to start being a producer that way you're the one that's making money when everybody else is spending money so if you really want to become wealthy you got to understand that and you got to stop hating people for becoming wealthy and understand the game and win at the game now if you don't like the system then what you should do is become wealthy and then use your wealth to give back and help other people that's a good thing and now you can inspire other people to do that okay but if you really want to become wealthy you got to have the right mindset because if you hate the idea of becoming wealthy you are never going to become wealthy the reality of the game is the more money you have the more you can do if you're broke you can sacrifice your time and you can help people but if you have a million dollars now you can help a whole lot of people you can feed a lot of hungry people and you can shelter a lot of people who need shelter if you're broke you can't do that yes you can sacrifice your time and you can serve people and you can help people and you should we should all have the mindset of wanting to give back and taking care of our community that's very important that's important to me too but the more you have the more you can do so if you want to be able to help more people you got to understand how wealth plays a part in that because if you have the money and you have the resources you can do a whole lot more good for yourself your family your community and your surroundings the third thing you got to understand about your mindset when it comes to money is that money is just a tool having money doesn't make you a good person and it doesn't inherently make you a bad person having money just gives you money having money gives you the opportunity to send your kids to a better school having money gives you the opportunity to go on better vacations having money gives you the opportunity to buy better gifts for your spouse having money gives you the opportunity to feed more hungry people having money gives you the opportunity to drive a better car okay having money is a tool it does not make you a better person it does not make you a good person it's just a tool and you as the owner and the holder of your money get to decide how you get to spend that money so you got to understand that money it does not make you a good person it doesn't make you a bad person it just gives you money that you can use as a tool and the last thing got to understand about your mindset of money and wealth is you gotta stop blaming luck for the reason why people become successful because that's one big lie everybody says that oh this person became wealthy just because they had rich parents or because they got lucky or whatever but the reality is that's just not true i mean fidelity did a study where they looked at millionaires across the board and what they found is that there was a portion of millionaires out there that inherited a big chunk of their wealth but it wasn't everyone i mean it was only 12 of millionaires out there that inherited 10 or more of their wealth so yeah there is a factor of luck involved but for 88 of millionaires out there these are people that did not get this wealth inherited to them or do not have rich parents they did not grow up going to country clubs they did not have a trust fund these are people that created their millions themselves now this is not to say that there's no luck involved in becoming successful or wealthy there is some luck involved but what you have to understand is that the majority of people who became wealthy these are not people who were just given their money these are people who worked hard and found a way to become wealthy and what you find out is the harder you work the luckier you become because luck happens when hard work means opportunity and so the harder you work the more prepared you will be and the more ready you will be when the opportunities come your way are there some people who have the money just fall into the lab yes some people just win the genetic lottery or some people just win the actual lottery and some people just have the money given to them but that's the exception to the rule that's not the rule the majority of people who become wealthy are people who created themselves by understanding the mindset and the four other things that i'm about to talk about when you see somebody who has become wealthy all you see is the tip of the iceberg you see where they are now you see the car that they're driving and you see where they live and it looks nice and it's easy to say that they became lucky but what you don't see is all the sleepless nights all the hard work that they went through and all the kind of pain that they went through to get to where they are today and so if you want to become lucky you got to look a little bit deeper and look beyond just the tip of the iceberg and see what it really takes to get there and you got to stop blaming other people for becoming wealthy and understand how you can do it yourself the second thing you got to do is work on your income so this is where things get a little bit tricky because first we develop the mindset and now once you've got the mindset you got to start earning money now there's a couple things you got to understand about your income the first thing i understand is it's not just how much money you make it's what you do with the money you make but having more money can accelerate your path to becoming wealthy and this is where you gotta make some hard decisions about yourself if you're not happy with the amount of money that you're making then you gotta do something about it look at yourself in the mirror and ask yourself why are you not making the money that you deserve is it because you don't have enough skills not enough degrees or are you working a job where you're just getting underpaid if you're not happy with the amount of money that you're making you got to stop complaining about it and you got to start doing something about it if you don't have the skills and you don't want to go back to school or if you don't want to learn a new skill then maybe you got to take on a new job maybe you got to learn a new side hustle maybe you got to start a side business to do something to supplement your income if you're just complaining about it and you're saying man i wish i made more money i wish they would just raise my wages for doing nothing more except what you're doing right now and you're just playing the emotional game and hoping that luck is gonna come through the door and put a million dollars on your lap if you're not happy with how much money you're making ask yourself why and then do something about it depending on where you are and who you are that might mean adding a second part-time job to your routine and i know that's hard and it takes a lot of work but i've been there i went to law school full time and i was running my business full time and i went to acting school in the evenings it is long it is hard but it's a sacrifice that you got to be willing to put in today if you want to achieve more income so you got to know what you want and if you're not getting what you want ask yourself why and then figure out what you got to do to get the income that you want the second thing that you got to understand when it comes to your income is that there's a lot more to becoming wealthy than just how much money you make i'm going to talk about this in the third point but having more income only does good if you know how to use the money that you're making if we're just making more money to drive a better car to live in a bigger home you're just spreading yourself thinner and now you have to work even harder to keep making all of your payments so what you got to understand about your income is there's a lot more to becoming wealthy than just making a lot of money it's what you do with the money you make there's a reason why so many high income people so many high income doctors so many high paid athletes so many people who won the lottery still live broke because they're living paycheck to paycheck they're making a lot of money but they're spending all the money that they make so you got to understand how an income plays a part in your life yes having a big income can help you accelerate your path to wealth but it can only do that if you're using your income the right way and that's what i'm going to talk about right now number three you got to pay yourself and stop spending all of your money so americans have an issue where when they make money they feel like they deserve to spend this money and they deserve to have these nice things because it's very hard for americans to go through the short-term pain for the long-term freedom that you can get from not spending all their money i mean it's just a strange culture that we live in where everybody feels like they need to have the newest iphone they feel like they need to have the newest laptop they feel like they need to drive a brand new car they feel like they need to live in a big home they feel like they need to have all the newest things and all these things keep costing you money and now you look really good on instagram and you have all these nice things but you have no money left to pay yourself because you're playing in this game living off your feelings where you spend money based off of what you think will feel good right now instead of what's good for your wallet long term the vast majority of americans are living paycheck to paycheck now if you ask these people why everybody will say it's because they're not making enough money we say it's an income problem but that's like the government talking the government always says they're not making enough money but we never look at how much money we're spending there's also a spending issue there's two sides of the coin it's how much money you make and it's what you do with the money you make we can keep blaming us how much money you make and sure that might play a part in it but that goes back to what i just said before if you're not making enough money why is it can you work a second job can you do something else can you learn a new skill can you make more money sure that might play a factor but on the second side of the coin is how are you spending your money if you're living paycheck to paycheck and you drive a brand new car and you have air pods and you have a brand new iphone then chances are there's more to this problem than just how much money you're making you got to look at what you're doing with the money you make if you've been watching my videos chances are you've heard me talk about guacamole a million times on our channel now the reason i talk about it so much is because i love guac and i have the money to afford an extra side of guac no problem but when i go to chipotle i never order an extra side of guac because it makes no sense for me to pay three dollars for a small little exercise guac when i can go to kroger and pay a dollar to get a whole avocado and now i got four sides of guac for a fraction of the price yeah people keep going to chipotle and buying the extra guac now i know what you're thinking oh just breathe a three dollar side of guac is not the reason why people are living paycheck to paycheck yeah i get that a three dollar side of guac is not the reason why it broke and spending four dollars on a coffee is not the reason why it broke but it's not having the right mindset because you're spending money on things that you should not be spending your money on right now because right now what you need to be doing is paying yourself because if you're complaining about living paycheck to paycheck and not having enough money yes we can look at how much money you're making and you should you should work on how much money you're making to work to increase that but you also got to look at how you're spending your money are you spending your money on things that you don't need because that's the easiest way for you to have some more money left over to start paying yourself right now is just by not spending all your money if you look at things strictly financially do you know how rich people get rich and how wealthy people stay wealthy it's pretty simple they spend less money than they have they live like they're broke they don't spend every dollar that they make on nice cars and clothes and shoes they spend some money on themselves and when i say pay yourself what i mean by that is you're saving some of your money for an emergency and you're investing some of your money that way your money can grow and make you more money if you are not paying yourself if you're not spending some of your paycheck every month to go directly into your savings account and if you're not having some of your paycheck go directly into your investments every single month then you are not paying yourself and you are doing yourself a disservice because all your money is going up making everybody else around you rich but it is leaving you broke the issue is we live in this culture where we all live in our feelings like we feel like we work really hard so we deserve to reward ourselves by going on this really nice vacation and we deserve to reward ourselves by buying this really nice car buying this watch now these things are nice i want you to have a nice vacation i want you to have a nice car i want you to have a nice watch but i don't want you to sacrifice yourself from paying yourself because then you're gonna pay the price in the future i want you to have these nice things but i also want you to be able to afford it first let me let you in on a little secret nobody who's worth a million dollars is flying on a private jet unless you're one of those people on social media that's uh taking pictures on a private jet that way you can sell more of your course on how to be rich by living your life and doing whatever it is you do but nobody who's actually worth a million dollars is flying in a private jet because people who are actual millionaires understand what it took to become a millionaire and they're not going to just blow all their money on something that's not going to help them keep their wealth and grow their wealth you got to stop living this instagram flex life where you live in life just to show off your income what you got to do right now is live below your means and pay yourself first that way you can use your money to build your wealth use your money to build your savings that way you can be free and once you pay yourself then you can live your life the way you want without worrying about the price i probably should have put a trigger warning in the beginning of this video where if you're easily triggered don't watch this video but i did tell you that you got to step away from your feelings in order to really do these things so let's move on to number four you got to stop the payments if you want to become wealthy now look there's two types of perspectives when it comes to your payments and the way you live your life on one side you have the dave ramsey approach which is the no debt no financing anything approach whenever you want to buy anything you got to buy with cash whether it's your investments or your liabilities no matter what you want to buy you got to buy cash on the other hand you have robert kiyosaki who is essentially like finance everything never pay for cash for anything and then use your money to buy investments and have your investments pay for all of your stuff both of these options can work obviously one is less risky than the other and one is harder to achieve than the other because now you have to afford everything in cash but what you really got to understand now is the difference between an asset and a liability and when are you stretching yourself thin by financing something because when it comes to things that are not making you any money you should not be financing it because when you're financing your clothes now you're paying interest on something that is not making any money and something that is depreciating in value so not only are you paying top dollar you're paying interest on that and this thing is just losing you money kind of like what i mentioned a minute ago one of the easiest ways to keep more money for yourself is to stop having money leave your wallet and one of the ways that you can do that is stop financing things and pay off the debts that you do have that way you don't have money constantly leaving i mean you can think of it kind of like a cup and at the bottom of a cup you have a hole this hole is your payments now the more debts that you have the more payments that you have you have a car payment you have your mortgage payment you have the financing payments for your clothes you have your furniture payments you have your credit card payments the more payments that you have the more holes that you have and now when you take your income which in this case would be like a glass of water and you pour it into the cup the more holes that you have the harder it is for the water your money to actually stay in this cup so if you want to keep the money in the cup what you got to do is you got to seal the bottom and you got to stop having those payments that way water can stay in your cup and they can start flowing upwards that way now you have the money to create more income coming into your cup so when i say stop the payments that means one on all the reliabilities the things that are not making you any money your credit card payments your car payments these are things that you got to pay off quickly that way you have less money leaving your account second when it comes to buying more things no more financing anything that does not pay you and number five is you got to have patience because you got to understand that building wealth is a marathon it's not a sprint this is not something that's going to happen overnight and when you want it to happen overnight and you want it to happen quickly you're more easily to get caught into one of those get rich quick schemes and falling into risky investments where now you're spending a whole bunch of money on things that are not making you any money because when you jump into those get rich quick schemes the only person you're making rich is the person selling that get rich quick system now if you do want to accelerate your wealth there's nothing wrong with that but you just gotta know how to do it the right way on one hand you gotta work on earning more money and now as you're earning more money you gotta use more of your money to actually pay yourself that means saving your money for in emergencies and putting more money towards your investments that way you have more money working to actually build your wealth so if you want to do that hey great work on earning more money but understand that takes patience too building a business building a side hustle get in the races doing all you gotta do to earn more money does take time i mean think about like building a youtube channel you don't build a youtube channel overnight these are things that take time to build you want to build a business it takes time to build these are things that take years and so if you really want to become wealthy you got to have the patience in your mind and you got to understand that this is not something that's going to happen tomorrow this is something that you're working on for your lifetime that way you can live wealthy and live free it's not something that's going to happen next week next month next year this is something that we're building for the long term so you got to have the patience the patience in order to build the wealth if you enjoyed this video here's a video on vanguard etfs that i think you love and while you're at it download our free stock market pdf and as always keep hustling instead of having this guy with a mustache manager money how about let me raise the mustache and the person how about we just have a computer manager investments because computers are a whole lot cheaper to manage

Channel: Minority Mindset

Views: 115,008

Keywords: minoritymindset, minority mindset, minority123, jaspreet singh, rethink rich, financial education, financial literacy, build wealth, become wealthy, passive income, how to become wealthy, investing, investing 101, investing for wealth, how to invest, investing for beginners, stock market investing, stock market, real estate, real estate investing, stock market 101, real estate 101, personal finance, budget, budgeting, invest

Id: VC6Z7WxkKVw

Length: 93min 8sec (5588 seconds)

Published: Sun Jun 13 2021