"I Got Rich When I Understood This"

this is the reason 96 of you will never be rich the wealth puzzle and when you're missing one of the pieces then the puzzle is incomplete by the end of this video you'll know all six pieces that you need to focus on instead of just this wheel but first let's talk about the fourth piece the easiest one to work on called going beyond countless people say the secret to getting rich is to work hard but that's fake news because for the wealthy working hard means something entirely different chances are you currently work for someone else and there's nothing wrong with that but you need to understand that your salary is kept so you're limited to how much money you can create from your job because you're exchanging your time for money and you only have 24 hours in a day let's say you make 20 bucks an hour the most you can make is maybe 20 times 8 hours 160 bucks a day but you could be making more by lifting or removing the cap see what i did there and that's where low stake and high stake comes in low stakes aka side hustles lets you go beyond the standard eight hour working day to earn more although you're still exchanging your time with money for low stakes the extra couple hundred bucks a month will significantly help with the fifth puzzle piece in 2021 nearly fourteen percent of people with the side hustle were earning over fifteen hundred dollars a month from ride sharing food delivery and only high stakes on the other hand means that you're a big boss business owner which no longer requires you to exchange your time for money instead the business makes money for you so this doesn't apply anymore and you actually don't need a lot of money to start with either you can simply level up your low stake gig you see i used to run a side hustle where people paid me to make custom artwork for them which thinking back why i couldn't draw but i sold them for 100 a piece which took me a couple of hours to make but i became a business owner when i decided to scale instead of making custom pieces each time i would make one magnificent horrendous piece and then sell unlimited digital and physical copies online to apparently people who were hard of seeing at that point i didn't need to trade my time for money anymore but before you can take off the salary cap you absolutely need the first puzzle piece which is your foundation and unless you're in a health and unless you're a heartless inanimate object like mr magic lamp you experience self-doubt and insecurities which is completely normal but if these limiting beliefs only exist to make you feel like crap and hold you back that's when we got a problem and we gotta take care of it oh i don't mean to beat it up my hands are just cold when i worked at a real job i used to think that i need a stable job to be successful which is a limiting belief so i asked myself is this really true what evidence did i have for it my beautiful parents are hard-working blue-collar immigrants who instilled the idea that a job in finance was the third highest level of success right after doctor and lawyer which obviously i wasn't smart enough for they thought that success meant putting in decades of your life at a good company despite how miserable it makes you because those decades will pay off in the end but then i realized that my hands are actually really hot but then i realized that there are countless successful people who aren't on these paths which this proved this limiting belief so i decided to save up a bunch money took a huge risk and quit my job to build my own business and now look at me i now buy clothes at walmart instead of dollar tree now this mindset limited belief mumble jumbo might sound like some spiritual hippie nonsense but i realize that when our mindset is actually aligned when we truly believe we act differently and we start to notice hidden opportunities but only if you have the second piece planned out already so if you actually want to get rich starting today then you need to come up with the vision where do you see your financial situation in five to ten years is there a specific amount of money that you want to make how mad do you want your future spoiled kid to be when you only give him a lamborghini instead of a yacht for his 16th birthday are you living in a way that will help you reach this goal or are you just straight up cool like a fool in a swimming pool bars so the money vision we'll create together in just a few seconds is something that you will revisit again and again as you get closer to achieving your goals and hopefully creating new ones let's start off easy and tactical if you want to make a million dollars in 10 years you got to break it up into a bunch of different milestones here's a trick question what's your first milestone gonna be most people i've spoken to picks a hundred thousand dollars as a first milestone because it just feels right and it looks like a linear pathway to a million dollars but just because it feels right doesn't mean it's okay like laughing at people when they fall in ice which is apparently not socially acceptable the secret here is that wealth is built exponentially through combining step 4 and step 5 in a really clever way so realistically the first milestone should be something way more achievable to where you are starting such as saving a hundred dollars or a thousand dollars these numbers are something that you can save up after a few months of working which may involve cutting back on expenses or picking up a side hustle however the most important part is actually setting up the milestones after the easy ones in a perfect world where you can freely laugh at people who slip on ice the milestones would be multiples of 10 because 10x is easy to conceptualize 100 1k 10k 100k and so on however more realistically you should set up closer milestones such as 1 to 3k or 7k to 10k and so on which roughly mirrors my path i've been working a job since high school throughout college and then after college and then on top of that i was freelancing as a side hustle which then eventually turned into a business and so on but just having a nice and beautiful plan on a piece of paper isn't enough because like me you'll probably just stuff it in your random crap drawer and forget about it but that's why the third puzzle piece is so important this next piece involves surrounding yourself with all this information how find like-minded people and once you actively look you'll find them everywhere they might be hiding in your closet or even under your bed at which point you should probably call the cops go to meetups in town join forums online start talking to friends about your ideas that's pretty much how i started look at the network of people that are already in your day-to-day life maybe you're really clever but godly annoying friend from school or the obnoxiously loud sneezing but successful co-worker take out a piece of paper from your random crap drawer and list out all these people and then ask if they're down to hop on a call or grab a dollar coffee from mcdonald's to learn about them they'll be flattered that you want to speak with them because who doesn't like getting their ego stroked and chances are at the end of the conversation they'll hit you with the let me know if there's anything else i can help with repeat this to build up your network because your relationships are your greatest capital and also what will hold you accountable besides the worst they can say is no and then you're back to exactly where you are the secret i found is that successful people want to help unless they're apples they love to share their knowledge with enthusiastic and passionate people so dial it up a notch and that's where we get to the easiest piece of the puzzle next up going beyond and as i said in the beginning this part will be much much easier after you have your first three pieces in place whether you want to start a side hustle or start your own business but one thing that people always forget about including myself and is super important to your success is managing your business's money look i get it traditional accounting is boring and takes an ungodly amount of time it's absolutely the last thing i want to do for fun right after i don't know drink oj and brush my teeth but that's why truly small wants to revolutionize accounting for small business owners like you so you don't need to waste your precious hours truly small has a really cool functionality that saves me a ton of time called auto posts which eliminates redundant accounting tasks that traditional accounting systems require here's how it works once you connect to your bank truly small accounting uses machine learning to auto categorize and auto match your transactions this eliminates errors and the need to constantly reconcile your bank account you can also teach the super smart ai your business's unique needs to ensure you get it just how you like it in a matter of minutes you'll have all your important business financial reports to file taxes to take out loans to make better business decisions and grow and scale your business plus they also have a really cool invoicing function where once a client pays it would automatically match your transaction from your bank account to the invoice making everything so much quicker if you're interested in truly small sign up with the link below and use the coupon code vincent50 for 50 off your first year of truly small accounting and thanks to truly small for sponsoring this video the second to last piece of the puzzle is almost as life-changing as discovering ice cream and chili oil together after you take off the salary cap you'll have a bunch of extra cash just sitting around and the secret here is that true wealth is built exponentially with investing and compounding let's say you invest a thousand dollars in year one and you get a ten percent return on it you make a hundred dollars in year two you'd make a hundred and ten dollars because your end of year one return is worth one thousand one hundred dollars and you make ten percent on that your end of year two return is worth one thousand two hundred and ten dollars so your year three return will be a hundred and twenty one dollars you see how your money is compounding while you're just sitting there over time you get a return on the money you originally invested plus the return you received for that original amount and what if instead of starting with a thousand dollars it was ten thousand dollars or one hundred thousand dollars this is exactly how 99 of warren buffett's wealth one of the richest men alive was earned after his 50th birthday according to the book psychology of money when the book was written his wealth was 84.5 billion dollars but nearly 99 of it 84.2 billion dollars was achieved after his 50th birthday through investing and compounding but it's super important that you invest correctly i'll show you the easiest way to get started but first here's a mistake that you need to avoid you've probably heard a lot about day trading before you see on take talk on instagram youtube facebook videos if that's the thing about analyzing chart patterns buying and selling stocks 20 times a day hoping and praying that it goes up thinking that it's really really exciting but here's the thing that they don't tell you ninety percent of day traders lose money and before i explain what you should do instead and trust me it's so easy that my dog with the mohawk can do it i'm gonna make it even easier for you i created daily market briefs a newsletter that makes understanding market news easy and quick dare i say in just one minute and the best part it's a hundred percent free link in the description down below here's what to do instead three words dollar cost average or dca dca is an investment strategy where you buy x dollars worth of socks during a fixed time period for example you invest 200 into apple every single month for five years if you're investing a fixed amount of money each time you buy you'll get more shares when the stock price is lower and fewer shares when the stock price is higher and over time this will minimize the cost per share that you pay for your stock so if you have 300 to invest and you're looking at a very volatile stock called magic glam company and let's say in the first month it's ten dollars per share and the second month it's five dollars and in the third month it's 20 here's where dollar cost averaging comes in say you wanna invest a hundred dollars a month for three months so at the end of three months you bought 10 shares in the first month 20 shares in the second month and then five shares in the third month so now you have 35 shares for 300 for an average price per share of 8.57 what is she looking at now your price per share isn't the cheapest at five dollars per share assuming you could tell the future and you bought everything in the second month but it's also not the most expensive at twenty dollars per share if you bought everything in the third month so what should you dollar cost average into in the stock market definitely do your own research but one of the absolute easiest options where you can just set it and forget it is into a diversified index fund for some modest long-term gains like vfiax or fx iax and speaking of stocks you can get 10 free stocks if you sign it with mumu and 12 free stocks if you sign up with label all through my links in the description down below the last piece of the puzzle is this with your newfound skills you will be exposed to more and better opportunities in your opportunity universe so you should pause and reevaluate your puzzle every few months but even if you completed your entire six piece puzzle if you zoom out it really is just one part of an even larger puzzle that's why i interviewed wall street millionaires to discover their worst money mistake and financial advice that they would give the younger self click here to see their deepest darkest secrets

Channel: Vincent Chan

Views: 81,670

Keywords: how to become a millionaire, how to make money, how to become a millionaire as a teenager, how to retire a millionaire, how to retire early, how to retire a millionaire on a low salary, how to retire a millionaire in 30 years, how to retire a millionaire in 20 years, how to retire a millionaire roth ira, retire a millionaire with low income, retire millionaire with little income, can i retire a millionaire on low income, how to be a millionaire on minimum wage, minimum wage

Id: uoaLcDEhays

Length: 11min 47sec (707 seconds)

Published: Fri Aug 19 2022