The 5 Principles Behind the 10 Secrets

okay guys welcome I know the reason you're here you've seen the video everyone who has not seen the video 10 secrets to achieve financial success one guy the back can I ask why you're here there's always one so this video the 10 secrets we filmed it a couple of years ago and the brief was for Tom so just come over to Singapore for like five six days before I went on a business trip and the brief was pretty open it was kind of like okay you represent a young guy from the UK just come over and ask me anything so it's kind of like a and ask me anything format and if we just film constantly for the next three weeks I'm sure we'll get something useful because you're basically that you know typical London guy 20 to 23 years old and there's a whole bunch of questions that I'm sure everybody's always wanted to ask as someone like me which they either come in person and don't have the courage to ask or they ask and they get a two-minute answer and it's just not good enough so we do make ourselves publicly available but it's always very difficult you know later if you've got the tickets to come to the pub we'll probably won't have a conversation more than two minutes because there's just so many people so we're publicly available all the time but you generally don't get to spend a lot of time you know asking questions that you really want to ask so the whole idea behind it was film over three weeks ask me anything I think we got about 23 24 hours of footage of just him asking me questions and talking and we actually it was edited down to ten there was a lot more points otherwise it just would have been a ridiculously long video and no one would ever have watched it and he just would have been useless so we filmed it in that ask me anything format with no kind of like real idea what we were going to do and then we figured it out later afterwards when we saw the footage and what it came down to was those 10 secrets now the original video to kind of ask me anything format someone have a guess have a guess in the room how much you think that cost me to put online for free three week business trip around the world with Tom just following who said that how much 50 grand which currency [Laughter] you're not far off $65,000 how long do you think it took to recoup the money back as a rough estimate for days because as soon as he goes up on YouTube it gets 50 100 thousand views in a couple of weeks and they've just Bank you just see everyone coming in to purchase the education and it was actually when if you know the history of the Institute it was actually the first time had done any production where it was nothing to do with Freddie so obviously it opens up you know to a whole new audience you know people who are just interested in finance and financing their own life but obviously from the perspective of a trader you know there's lots of other people online but you can you know get a perspective from about finance and money from different fields but this is from a trading perspective so you know we hear these things where you know we have basic business principles in the Institute where it's like if we're doing a seminar summer in the world you know the cost of a seminar should equal one or two sales of the education and no more but we're public facing so I could eliminate all the costs and sit on a webinar at home from Singapore and just give you no opportunity ever to come to a live seminar and lots of people do that so why don't we do why do we spend tens and tens of thousands of thousands of doll a year on seminars we do 12 seminars every every quarter now because we see it as our duty to be public-facing but stuff like this the brief was to have it as an ask me anything format but also to make a timeless classic so in the Year 2065 people will still be watching it because it's relevant and the reason why it's relevant unfortunately in the Western world is because the Western world the generation coming up in terms of finance understanding business understanding money has just completely lost its way and there needs to be resources online that people can go to where they can get the basic principles that underpin money Business and Finance and then you can go your own way you know everyone has different choices in their life so we came down to these 10 see these 10 secrets and then for the next year or two I'm just watching the comments come through under the video and it's amazing like from my perspective to watch the comments how people just don't get certain things and today what we're gonna do is is look at the principles that underpin all of those 10 secrets to make it final so I've only done this once this presentation in Singapore in November at the world wealth creation conference - about 800 people and it's pretty much exactly the same presentation and this is the last time I'm going to do it so it'll be recorded it'll go online for a price and this is what underpins all of this all of those things that you saw in that video so I'm also answering all the questions from the comment section in this presentation so what are the five principles these are this is what we're going to go through today should take us a couple of hours so first acceptance to self-determination freedom risk IQ and hierarchy let's start with acceptance so I'm landing from the future Singapore I get in a time machine and I come back to the United Kingdom that's what it feels like to me when I come back to the UK the UK's struggling and things I'm going to show you now will be a little bit controversial but I don't care because I'll get back on a plane and I'll go back to the future the problem is not mine the problem is either yourself or where you are an acceptance underpins these three secrets on the video that you saw online so respecting money but being indifferent towards it okay you remember that conversation where I'm sitting on the sofa in New York going traveling getting perspective and getting your dream life and seeking out alternative education except that the principle of acceptance is what underpins those three things so if you remember when I was sitting on that sofa the basic premise of that interview and that was very much in off-the-cuff and so on we just London New York like I'm gonna turn the camera on I'm gonna ask you a question about money and then I went into the bedroom put a shirt on and then we sat down that was it and Tom was really worried he was like you know if we just sit there and talk for a really long time it's going to be really dry and boring and I'm I don't care like it's all about being punchy and it being over in a minute to keep you know lazy and bored people engaged it's about just getting the real information out there so if you remember in that interview the basic premise is that a capitalist system combined with democracy and freedom although it's not perfect it's the most effective system in the history of mankind for raising living standards proven proven by history no one can tell you any difference so for example the US Constitution Western world rule of law that has stood the test of time and it's been proven that it's basically the greatest gift that's ever been given to humanity and if you think it's not you have a problem you've been brainwashed because the facts are there if you just look at the last 200 years the numbers are staggering in terms of the percentage of human beings that have been born in the last 200 years relative to the rest of human history if you think those systems are the problem you are the problem that's the basic principle ok combine that with a money based system and see money as votes so you get to do whatever you want with it because you have freedom and you make choices and that combination has elevated living standards exponentially in the last couple of hundred years and prior to that what was the world it was just run by autocrats aristocracies and there was no freedom for the poor it was a system of servitude and top-down and power just flowing from the top down the power now is with the consumer because you have because money gives you freedom you can do what you want with it and it's a vote and right now obviously in the Western world it's a very popular kind of political leaning to be ante that system that's great but if you don't accept that it's the best system that's ever been created in the history of mankind and you spend your life fighting it unfortunately you're never going to become wealthy so acceptance is really just accepting its true once you accept its true you actually just free yourself to be able to go and do whatever you want and if you're the typical millennial who wants to change the world the best way to change the world is get rich and use your money to change it the system is there for you to do it no one's fighting you the vote system basically gives you the power to elect superior goods and services that's the money system and if you provide those superior goods and services you actually raise the level of living standards and humanity yourself and eliminate bad products and bad services so everyone's life gets better that's the beauty of the capitalist money system and if you remember in that interview is about barter economies so money eliminates bartering so again acceptance in principle in this form is just admitting that it's true like I don't think it's trendy or cool by any stretch of the imagination to deny that capitalism is great I think if you if you don't think that I think you're dumb because the truth is with for example medical and scientific advancements of the last 100 years and all the innovation that happens if it wasn't there you literally would not have been born think in the bigger picture you literally would not have been born I think this is a great quote from Milton Friedman if you don't know who that guy is very famous economists dead now but was pretty much the grandfather of all monetary theory one of his quotes the record of history is absolutely crystal clear that there is no alternative way so far discovered of improving the lot of ordinary people that can hold a candle to the productive activities that are unleashed by a free enterprise system anyone disagree with that I don't believe you were in London 40 50 percent of people in London are basically left-leaning socialists so I know you're all in the room now if we are having a beer which we will be later at the pub I would be completely admitting to you that it's not perfect no one is saying it's perfect no one's saying it's perfect but it's better than everything else and you have to start thinking intergenerationally not in the next one or two years what's going to happen why capitalism might not be good in the next one or two years think of it over periods of 25 50 100 years when you start thinking intergenerationally and just accept that it works the best way you can be part of it and if you want to change the world be part of it be successful you can use your resources to make it better but first acceptance you wouldn't even be here you wouldn't have been born if it didn't exist so to succeed in this superior system as proven by history first of all you got to accept it and embrace it and work out its advantages and disadvantages and operate successfully within it start trying to think in this way what's what was global GDP in 2017 seventy nine point two trillion US dollars do you have any comprehension of how big that is in 2018 it's going to be roughly eighty one point nine seven trillion in 2019 it's going to be eighty four point eight four trillion and we continue growing global GDP it's been growing three and a half percent for the last six years but I just ask yourself this question what if it was lower than that number next year so everyone's expecting this number what if it was lower well who cares the numbers are ridiculous the numbers are just monstrous and on top of that if you're just smart and you know how to make money when GDP is expanding and how to make money when GDP is contracting it doesn't matter it's genuinely not a question of whether it goes up or down it's just a question of whether you accept it's the best system and if you want to participate or not guess what if you make the choice every day not to participate what do you think you getting written nothing it's a meritocratic system the real question when you look at that number there so twenty eighteen eighty one point nine seven trillion the real question is how much do you want if you want nothing you will get nothing now obviously some people in the world don't have a choice but you have the choice you're lucky you can choose to be part of it you can choose how much you want and when you've got it you can choose what you want to do with it and if you want to change the world with it change the world by just participating and making a better product or service you're changing the world anyway you're raising living standards you're doing your part in the economy and once you accept it what will happen you're going to engage with the system positively and you'll figure out the advantages disadvantages you'll figure out what works what doesn't what it can do for you and what you can do for it but if you choose not to participate and stand around with placards with stupid signs on the placards protesting all the time that's you saying I want nothing and what's the system going to give you in return nothing because you produce nothing is it starting to sink in so that's one of the controversial parts out of the way if you want to have a beer and talk about it later well one or two beers not too many because you might get into an argument third hope that's the first that's the one of the controversial parts of the way and I'm doing this to try and help by the way I'm not standing here to try and be nasty to you this is to help you know I struggled quite a bit in my late teens early 20s and I wasn't one of these people who wanted to change the world but had a bit of a chip on my shoulder because I was from a background with no money a city that was full of crime and poverty and mayhem and I left and then it was around a lot of lucky and wealthy people and I didn't hate them but there was a there was a feeling all the time of why could enough just be me the moment I drop to that that's when my life took off once you just accept it's a good system and by the way if you start with zero and someone else has got a lot and maybe they're third generation wealth you can't hate them the only thing the best thing you can do is just change your own circumstances don't worry about other people troubling you remember I was on the plane talking about traveling in the video money allows you experiences and one of the most important is traveling it there's the quicker you can do it please do it who's a traveling junkie who travels a lot quite a lot of you it's quite impressive but I got being pretty much everywhere and what I realized is that it gives you a lot of perspective on other economies other systems and which systems work and which systems don't now it's all very well strapping on a backpack and going through India and all these places and you know Africa third-world countries or whatever and getting these experiences it's great fun you know a lot of people do it when they have a year off you're not really thinking in that situation about the country you're in you're just trying to get the experience out of the country yourself so traveling is is actually quite selfish in that respect you're trying to have a good time your times and more important they're naturally figuring out what's going on here in this country that you get this perspective and also when you come back to your home country you see things in a very different way because you've seen what works and what does it and when you come back to your own country you start seeing things that don't work and things that work so going back to the other point the advantages and disadvantages of this system you start noticing a lot more part of the traveling discussion was buying your dream life for cash do you remember that so if you go around the world and you decide okay this is my heaven this is this is where I want to be forever that's the place where you should be buying something for cash if y'all got the cash obviously you have to wait and figure out how to get that money to buy it and when you've got that what does it mean well you can operate with total freedom because if you came back to the UK and the UK fell apart what happens well 99.9% of the population of running around scrambling trying to sort their lives out what do you do you jump in a car and go to a hero and on the other side of the world you've got your dream life so when you're operating in the UK you have zero risk so when you walk into a meeting and you're doing a negotiation and someone's haggling over a contract or hug or haggling over a price you don't care they care but you don't because you've already got your dream life so you sit there and you can negotiate but who really gets you just tell them what you want and if they don't give you to you just walk out the room and we'll have what happens nine times out of ten you get what you want because in that meeting and in life generally when you're operating in that situation where you have the dream life you don't panic you don't worry you don't have any anxiety you don't show your hand of weakness and the person who's negotiating with you over whatever does it pick up on your weakness and because you're non-negotiable they can not negotiate we so they have no choice they just always give in and give you what you want it gives you a lot of strength like I noticed a massive difference after I went travelling up or five properties around the world for cash and when I came back because I just didn't care everything just came to me I didn't go looking everything seemed to just work out all the time and there wasn't any real discussions over prices or negotiations ever it was just that's what I want if you don't like it Heathrow Terminal five and they always give you what you want because they have no choice you'll make much better decisions and you won't need to take unnecessary excessive risks you'll absolutely not ever be required to have a lottery mentality so where you're just all the time buying lottery tickets in different formats trying to get huge amounts of upside because you've got nothing are you trying to get excessive amounts of money with excessive amounts of risk looking to play the lottery all the time you just won't need to so it's something that you should really aim for in my opinion in your life if you can get your dream life by 3540 years old you're going to do excessively well in your 40s and 50s and 60s because at that stage for the rest of your life you don't care you've already won and what happens is the world comes to you and gives you more because you're in a much stronger position than everybody else and they want what you have so they take the risk in you don't so what it comes down to is having this freedom and it was said in the video the 10 secrets video freedom is the number one asset you will ever own so back to this principle acceptance acceptance that the system is superior why because it gives you freedom if you want it if you don't want it fine the system won't give you freedom if you don't want it but if you want it you'll get it very important to understand what freedom actually is they'll define it will define it through this presentation so traveling what it comes down to really if you've never travelled and seen multiple systems that have failed and multiple systems that have succeeded you really don't truly know and understand the system that you live in whether it's successful or not so if you're just sitting in this system thinking it's bad but you've never traveled how do you know it's bad how do you know it's good you don't have any perspective whatsoever I would advise you know when you meet people one of the first conversations you should have with people is how much of they travel in their life it will then give you an idea of who you're dealing with if they're likely to offer anything of value and understanding and perspective on the world if they haven't that relationship is going to last a very short time because they don't understand anything in the world seeking out alternative education so if you remember that interview on the street in the 10 secrets acceptance here in this form it's just accepting that there are some disadvantages in the system and one of them and it's very prevalent in the UK is that governments too big when government gets too big they control the narrative they control the information that go that gets delivered to you and they provide inadequate services especially in education like a guy like me can fly over from Singapore and deliver to you in two hours what you should be learning in school from the age of eleven to eighteen why is it not there it's a controlled narrative to make you believe in certain things think about how many teachers that you had growing up can you name one of your teachers growing up that ran a multi-million dollar successful company of course not ask yourself these questions about the teachers that you had when you're growing up what percentage of your teachers had successful marriages I'm Paul were divorced and these people are standing in front of you impressionable kids of classrooms of 20 30 40 kids telling them how they should live and think and when as a parents you're dropping them off and leaving them with these people for years all of these what most of these teachers are just failures and they're teaching you a script called the National Curriculum so you just have to accept that in a lot of Western world democratic capitalist systems there are issues there are problems so like I said almost right at the beginning that the systems are not perfect and one of the big issues is you're given a narrative script education and in a lot of countries it's what a lot of countries people the distribution of the way people think is so narrow it's like they're churning out to a conveyor belt of robots it's like a it's like a factory just churning out robots who all think in the same way so this is again acceptance now moving on to the next step and what you do about it well you've got to seek out alternative education parents are also an issue so if you're third fourth fifth tenth generation and your parents have zero in their bank account so your third fourth fifth tenth generation Western world just think how long your family has been operating in the Western world and all the economic booms that have happened over the last hundred to years and they've got zero well that might it's the same thing as the teacher right if they're standing in front of you telling you what you should be doing with your life it's it's a it's a joke because they've got nothing they've lost so you're not going to take advice in any game from someone who loses every time they played the game so why would you take advice from them back to school teachers obviously the vast majority work in the public sector but even if you've been to a private school it's very very unlikely that any of these people have had a modicum of success anywhere in their life so in terms of financial education they can't teach you anything there is obviously another problem in the Western world of out of wedlock children so the dad's not around or single-parent families divorces it's very high a lot these a lot these kids have had no example of how to do things just the basics just the very basics that's all you need and school doesn't fill that gap it doesn't even provide that gap you know in a lot of communities in the Western world and this is kind of that this is a negative government's too big in a lot of these countries schools are place where you drop your kids off to hang out for seven eight hours because you've got something else that you've got to give and work so put something on the table at the end of the day school just becomes a convenience somewhere to drop the kids off so acceptance in this respect it's just accepting that that part of the system fails people when it comes to a financial and business education because it simply can't provide that type of education because the people in the system have never done it so either the teacher or the parent so you have to remove yourself from the situation physically so what did I do I grew up in Liverpool I think it's like 90 95 percent left left-wing very very in the 80s very very anti-capitalist very anti business massive belated state lots of welfare dependency drugs crime you just literally get on a train and you leave you don't hang around don't fight what's around you it's there just accept it get on train and leave physically remove yourself so just accept that it exists and seek out a better financial education because it's not going to be provided to you that's one of the failures of the system okay principle number two self-determination so this one probably brought up the most questions in the comments section after the video went out over the last couple of years self-determination is the principle that underpins the two secrets of rent-to-own so defining assets and liabilities properly and building and owning your own infrastructure so in terms of financial education and financial understanding an asset and a liability understanding what a perceived asset actually is so people actually perceive certain things as assets when they're actually liabilities and even after the video went out it's unbelievable how many people still don't get it because it really is just straight nuts and we use mortgages as the main example okay so let's start with a property I know somewhere down on this road it's on the market for three million quid if you get a mortgage do you pay 3 million pounds for that property no you pay a hell of a lot more so I'm going to show you now why it's it financially why it's actually really dumb to have a mortgage we can actually quantify because the first thing that one mortgage takes from you is your freedom because you have to pay every month and of course I'm going to get onto the point in a second but if you don't have a mortgage and you pay rent you have to pay rent every month well you don't you can just leave we'll get onto that in a second so a mortgage takes your freedom and right from the beginning before you even sign the paper to take the mortgage you can sit down and figure out what you value your freedom at at that moment for the next 25 30 years with it just a few assumptions so let's use an example in the United States everyone knows the difference between a repayment and an interest-only mortgage do we know that most people should if you don't know the difference between that you need some help a repayment mortgage you're paying down the principal of the loan while you're paying the mortgage interest only you're not you're just paying the interest so in the u.s. it's mostly repayment the vast majority okay in the UK now it's about 50/50 re payments and interest only mortgages that are outstanding in the economy but we're going to use an example here which is the best-case scenario which is a repayment mortgage okay in the u.s. so let's say you find a property that's 500 grand and you put down a 75 grand deposit to buy the property so you get a four hundred and twenty-five grand mortgage you sign all the papers it's done what do you own do you think you own that house you own nothing you own over 30 years a liability of 360 payments that's what you own if you miss one of those payments the bank takes the property so try to charge I'd like to think of an image of a young couple who have just been married and the husband carries his new bride over the threshold and they're clinking glasses of champagne celebrating and they think they own their house they own nothing they've got a loan and 360 payments that's what they've got so let's assume a 3.75 percent interest rate over I think this is 30 years 360 months right so that's monthly payments of 1968 dollars okay for 30 years so over the full life of the mortgage they're not paying five hundred thousand for the property they're paying seven hundred and eight thousand but let's make an assumption you know the Western world assumption is that property just goes up forever so let's put that assumption in and say okay after 30 years the property is going to be worth a million have you done what have you done well in that situation do you think you've done well in that situation so you've paid over the 30 years seven hundred eight thousand properties worth a million so you make a net 291 grand over 30 years but you gave up your freedom in the process the whole time so you obviously made money that's undeniable but you gave up your freedom in the process okay you were rewarded for giving up your freedom but and this is something that genuinely people don't understand because the questions that come through and also I'll prove to you about taking on the mortgage to rent out is that an asset or a liability I'll prove that's not true in a second I'm but people just don't really get opportunity cost of capital because that's 75 grand you that you put down to buy the property as a deposit okay if you just compounded that at 10% per annum doing something else let's say you just invested it in something you put it in a box and it made 10% every year it compounds to 1.3 million over 30 years at 10% so you have one situation where you're rewarded for giving up your freedom but for the whole time you have no freedom for 30 years you have to make that payments every month because you don't know anything you don't own it till the last payment of the 360 of the 360 months so you've got that one situation and you make if it's worth a million two hundred ninety one grant or you stick it in a box and make 10 percent and you make 1.3 million that's the second situation there's opportunity cost of capital so if you believe that you can actually make 10 percent per year on your money and live within your means so obviously you don't go out and spend it all or even spend even more home then the 500 grand property would have to increase in value by 1.3 million to pay for the opportunity cost of not putting it in the box that pays 10% so it would have to increase by that value for 1.3 million so it would have to be worth at the end of 30 years 1.8 million to pay for the freedom that you obtained by not having the mortgage does that make sense so you make one choice you can have the mortgage you can tie up the 75 grand so it's now they're tied up and there's nothing you can do about it or you can put it in a box and make 10% per year and it compounds so the property would have to work by that much for you to basically not give up your freedom as a minimum well you got to live somewhere so let's assume you rent over the 30 years for 20 run a year so you live in your well within your means you would have spent 600 grand on rent so you'll be left with 708 grant if you use that second situation I'm rented right so when you compare the two scenarios you're richer over 30 years by the 708 grand even when you're renting and you have your freedom 100% of the time and you have two so you have no liabilities and no debt to service so basically when you're taking the mortgage what you're actually saying is I'm willing to forego my freedom on day one for a price of 208 grand and you know going into it that you have 0% freedom over the 30 years because you have to make those monthly payments consecutively and at the end of the 30 years you can actually look back and say well what was my reward every year for 30 years 9 grand 9700 if the property is worth a million so if you want to be smart about this go and do a spreadsheet and work out all of your breakevens and opportunity cost of capital and time and freedom maybe we'll make a spreadsheet like that and send it out one day so in this scenario if you believe you can make 10% and by the way 10% is easy if you've got a financial education and you know what you're doing 10% is easy there's so many products in the world that pay 10% for very little risk that's like an that that to me is like an ultraconservative investment so if you believe you can make 10% on the on your 70 on the old deposit okay and you decide to take the mortgage on the $500,000 property you're basically speculating that the property will increase in value by 1.8 million over the 30 years that's the assumption you're making now property speculation is white wealth in the Western world in the last couple of generations why because the populations been growing but now there's a major issue birth rates in the West are plummeting so think about it if your country's birth rate is two children per family or just above the population remains the same over two generations if it's one it halves the population halves do you get that the building the buildings will still be there but there's half the amount of people so all these all these people that think they're going to be you know renting out properties for the next 50 years and just sitting on a beach somewhere with their feet up drinking mai tais while they make this thing they call passive income I'm trying to think where they actually get this assumption from because you need people to rent your properties but if the populations have you're just you're just going to be one of those people that ends up with a load of properties that are empty and a load of mortgage debt and it is in the process of having literally right now so it's a massive headwind for GDP growth and property prices in these countries do you think it's an accident that what you're seeing in the mainstream media over the last couple of years is basically a massive PR campaign by Western world governments to open the doors to unfettered immigration why was this not happening 20 years ago why now because they know it's coming I'm not gonna get too political but the EU the birth rates very low and the UK if they screw up brags it in my opinion it's the last opportunity that the UK has to sort itself out if they don't use that as a big opportunity to sort themselves out it's over because when you look at it intergenerationally things need to happen now in the next 10 20 years and the demographic headwind is a major issue for the Western world and the Europe in the UK the UK is in competition with all these countries and you need bodies you need babies and you need people coming in but the right people people who are going to add to the economy and create resources and businesses and GDP and jobs if you don't it's game over it will happen in our lifetime if you don't do it so going back to the mortgages this pretty much debunked the whole idea that you know it's really easy to just pop down to the bank prove your income of your all do a self certified mortgage get up buy to let and just rent it out to some random you are now longer mortgage you don't own the property the mortgage is a liability the renter is a liability you're working for the bank not for yourself and you're gonna have to work on that property for 30 years that does you know these numbers don't even assume that you've got all your costs and that you actually have to work you're not going to be sitting on a beach just collecting rental income have we got any landlords here I'm sure we have when was the last time you didn't work on a property for a year you're always on the phone you're always talking on lawyers and accountants and real estate agents and you're always working you never stop it's not passive income that's a lie passive is when you sit on your ass do nothing and money just comes to you it's not passive income if you want genuine passive income in real estate has anybody ever invested in real estate investment trust I have I do all the time who else is in reach you've got Reed's so real estate investment trusts is a you say is an asset class which was invented around the 60s in the United States and there was a bit of an explosion of this asset class in the 80s in the US and it's been exported everywhere you can buy real estate investment trusts in America Canada UK all of Europe Singapore Hong Kong Australia New Zealand they there's literally tens of thousands of them and what are they what are they well there's all different types but the basic premise is you either own or manage real estate and it's wrapped up in a structure called a REIT okay and they're publicly listed you can trade them on the stock exchange so you can go out right now and buy one okay and one of them one of the types is a residential REIT a residential portfolio manager or owner okay whatever that company makes they don't pay tax on it if they're a registered REIT okay but there's a catch they have to pay 90 percent of the rental income to their investors bylaw so you don't need to own a bricks-and-mortar to be a landlord and make money out of property you can buy a REIT and just get an annual dividend and do nothing you if you want to sit on a beach and get passive income buy a residential real estate investment trust that pays a six to nine percent dividends per year the landlord by law has to pay you 90 percent of the rental income that they collect what do they do they work what have you done what have you done you've provided the capital and what are you doing you're sitting on your ass on the beach drinking mai tais they manage everything so there's always opportunity cost and also by the way if the property market does happen to go up in value the portfolio of the REIT goes up in value and the share price of the REIT goes up so you're long the stock you're an investor so if the property portfolio doubles in value the the the REIT is going to double in value so you don't miss any of the upside by not buying bricks and water you can participate in the upside as well but ugn Yuen Li do nothing so I'd encourage you to look at REITs and start looking at the opportunity cost of actually owning something in bricks and water well actually you don't come on you've got a mortgage right you've got to pay 30 years I'm saying taking the mortgage and then renting it out and having the renter and having all the nonsense that you have to deal with all done it's a liability it's not an asset you're not earning passive income if you make money it's because you've worked for the property for 30 years and you could have been doing something else it's all about opportunity cost so also bear in mind this example that I've just given is a repayment example this is the best-case scenario this assumes that you're actually paying down the principal of the debt 50 percent of mortgages now in the West our interest interest only so people are taking out the debt and just servicing the debt by paying the interest and never ever paying down the principal it's madness and think of the interest rates as well so we example that we've used here was 3.75 percent do you control that you've got no control over it whatsoever your entire financial future rests on the whims of a central bank so if you're if you're on a fixed mortgage for say three or four years and you come off that fixed number and interest rates are higher you're paying a higher mortgage and you didn't choose to do that someone else did so you you don't have any self-determination in that situation so again going right back to the beginning the system's not perfect you just need to know the advantages and disadvantages so if you want to own property we operate in a system where you are allowed to own property if you want to but there's various ways you can do it so you can buy for cash you can take a mortgage you can decide actually you know what I don't want to participate I just want to invest the capital them buy a REIT let let the landlord worry about it there's many many different ways of doing it doing it with a mortgage is the worst way it's just the worst way we've also not mentioned here the intangible benefits that you get from just having total freedom because it's also freedom of thought we'll come on to that a bit later with a risk being able to assess risk properly because if you don't have total freedom you can't assess risk objectively so most people just don't understand this basic stuff about opportunity cost and the options that they have in the world that they have in terms of what they can do with their money so if you just make some basic assumptions like well here's my deposit if I just grew that at ten percent per year what's my opportunity cost what do I value my freedom at right now if I take this mortgage what's my payoff if the property is worth this and this and this and this and what's my risk what country am I in am i in a country that has a birth rate of one okay I'm in a country that has a birth rate of 11.2 well that means the populations going down 40 to 50 percent in the next 3040 years because the previous generation just dies and then what are you left with a whole bunch of houses and half the people so you got to assess your risk properly so most people just can't see it and there's obviously a massive conflict of interest it's basically the debt market narrative okay people that everyone in this room is sold debt through various media channels as a solution to their problems it's not a solution to your problem it's a conflict of interest that they want you to believe that debt is the solution so this myth that you take a mortgage and you own a property is continually pushed and perpetuated until it brainwashes people into thinking that they actually own a property and that just becomes accepted as truth but if you take a mortgage you own you own a property it's obviously not true you own nothing so renting to own very very important for the principle of self-determination okay I would encourage everybody in your early years of life rent first just totally maintain your freedom and buy for cash later much further down the line your dream life continued to maintain your freedom in terms of self-determination true self-determination means you are totally in control of your finances not somebody else so not a bank a bank doesn't decide your financial future your bank manager doesn't decide your financial future a central bank doesn't decide your financial future a government doesn't decide your financial future just don't have mortgages it's it it's the worst way to buy property it's the worst way or the worst way to get exposure to owning property and all the problems that brick some more to bring with it it's a liability you don't have to worry about it let the landlord worry about it so pensions building your own infrastructure this is also very important part of the ten secrets video and again underpinned by self-determination so we discussed like building your own pension pot okay so having that box that will pay you an annuity forever what's everybody been doing in the Western wealth for the last 40 or 40 50 years what's everyone been doing with their pensions well how people have generally retired in the last 40 50 years they've built a pension pot where they save every month if they've been if they've been well-behaved but they've also used property as a speculative asset to try and make enough money so they can retire and live a good retirement pensions people don't save enough and people live well beyond their means but if even if they live within their means and save enough they're outsourcing their pensions for somebody else and when you look at the returns of a generic passive pension over the last 3040 years it's pathetic so what tends to happen market stock markets go up say fifteen percent a year so let's say you got an index of 100 and you started at the point of 100 and you've got 15 percent a year compounded what do you end up with after five years 200 that's the level of the index your money doubles but what happens in year six if the market goes down 50% well your bucket a hundred what happens if you're the person that gets 15% a year compounded your 100 goes to 200 and then when the stock market goes down 50% you make 50% what are you up then you're a 300 there your two choices for your pension outsourcing and insourcing if you outsource you'll be back at a hundred before you know it if you in source you have a chance at being at 300 that's what it's come down to in the last 35 45 years so people that just have these things called long only pensions all you do is put money in every month and by the market they're the people that go up and then they go back to 100 every cycle and they don't save enough so what have they done well they've just made all the wrong choices this is the parents and the teachers that we all know and love who are trying to give you financial advice and life advice on what to do they're the people who have done that in the last 35 45 years like people just don't learn how to invest properly themselves they've basically outsourced their pension to a third party so what did they not do they didn't invest in themselves and build their own infrastructure so this is another thing in the Western world that's in the cups of the system provided by public authorities as an infrastructure as a solution to your problems and it's a disadvantage it hasn't worked if it works then everyone will be retiring very wealthy and having very comfortable lives but what does everyone do in the Western world when they retire they have to sell their property downgrade to a smaller property to release cash release release equity and pay off the mortgage and then that's not enough and then their kids have to top-up their income so you want to be the opposite of that you want to be getting to retirement and going from your four-bedroom house when you're 62 buying a mansion because you're now retired and you can afford to buy mansion you don't go from your four bedroom property and downgrade to a one-bedroom flat but you don't know where the world's going to be when you retire if you're 25 35 now why are you assuming that if you're in a problem you're going to get some sort of support from the government in the future what if it just disappears again this is back to self-determination you are totally at the whim of public authorities and if they disappear and all the money disappears all the welfare disappears what are you going to be doing if you're short in your pension and you can't even live a basic standard of living like you can't rely on these people you can only rely on yourself so building your own infrastructure you know for you to get significant investments and savings of course you can make money working for other people and corporations or whatever but if you want explosive significant money you've got to build your own infrastructure and build your own businesses and you know you reinvest the profits into investments that endure that generate that return every year the 10% plus return and then it just compounds and you'll realize when you get to certain levels it starts it starts off shallow it gets a little bit steeper and it takes time and then it just goes exponential so it takes time so you just got to understand the numbers behind the compounding and you'll get there quicker as well obviously if you work for yourself and you're successful in the business that you choose to bean also don't just assume and this goes back to travelling as well don't just assume that where you live in terms of taxes is efficient I'll give you an example of a comparison between the United Kingdom and Singapore so I live is Singapore and I used to live in the UK I've got businesses all over the world and I chose to live to move to Singapore not just because of tax reasons I pay tax in Singapore I could have set up somewhere where there's zero tax there's plenty of countries that offer zero tax you can go to Dubai register a business in the Dubai International Financial Center the D IFC put all your sales in all your revenue all your profit through the through your Dubai company and pay zero for 50 years now that's fine if you don't want to live there if you actually want to live there what's the Matt the important thing is what deal do you get in return for the tax that you pay well if you pay nothing in these countries around the world what you find is in return you do get nothing so go to any of the Caribbean islands where you can set up companies and pay 0% tax what do you get dirt roads no schools no hospitals just crap public services you can't live there they just tax havens right so it's it's different if you actually want to move there okay so I think Singapore's the best place in the world because it's the best deal in the world in terms of tax efficient structures and lifestyle so let's say you have a service company and you work for yourself and you have a UK company and a Singapore company and you invoice a client 100 in the UK what ends up in your pocket if you have a gross margin business of 50% if you're the entrepreneur what ends up in your pocket out of 100 with a 50% gross margin business anyone have a guess who's said 55 you've obviously not ever worked for yourself in the UK who's self-employed in the UK what do you think you get 14 No nowhere near try 12 because what's happening you invoice 100 write your v.a.t.s 20 percent sales tax if you're on a 50 percent gross margin business you claim 10 buck so you're left with 90 okay then you're 45 because your gross margin is 50% then you pay your corporation tax 20 so what are you left with 36 you pay you leave 10% in the business you can't take out all that 36 if you have a bad one or two months in the next quarter you need to have working capital in your business at all time right so you leave in 10 all the time so you're left with 25 26 then you pay yourself now let's say you're a higher rate tax payer you've got a very successful business what's the highest rate of income tax in the UK how much forty five is it 45 now what what's nationally insurance 13 a foursome is it 11 12 okay I don't know I've not been here for a while but it's not gone down right and by the way one of the costs of the business in the UK is that you actually have to pay employers national insurance so whoever you hire gyu you add it on you have to write a check it's a tax on jobs that's crazy so you're left with your 25 26 you're a high rate tax payer 45% tax plus 12 percent national insurance so you're at 57 you're left with 12 12 30 now that is a good business that's a 50% gross margin successful company with a product or service that sells and the owner is in the higher income tax bracket because they're earning a few hundred thousand pounds a year or whatever right what if you're just a regular company on the high street like a flower shop or hairdressers or a nail bar or whatever you go when you walk down the high street for you to make like a hundred grand a year after tax you're going to have to turn over millions and millions of pounds it's a joke it's an absolute joke so let's have a look at the other option Singapore you take exactly the same company and just put all the revenue and profit through Singapore what do you keep in Singapore out of 100 what do you reckon it's a 50% gross margin business right so it has to be lower than 50 okay what do you think it is it's low of low 40s so essentially what's happening is if you run exactly the same company through Singapore versus the UK 40 years of work in the UK is equivalent to 10 years work in Singapore so you can have for careers in Singapore and that equals one career in the UK now when I was living here it just became too much because you just get up every morning and you realise that you work from January the 1st every year till the end of October paying for everyone else to live that's basically what you do and that's if you're successful so if you don't want capital here that's fine make it difficult for people like me what do we do well we don't care we've got money we just go to Heathrow it doesn't hurt me because I just leave the people it really hurts all the middle-class are what keep us that's how it really hurts because it hollows out the productive capacity of the economy and capital leaves so factoring one two for UK versus Singapore running exactly the same company and this is what the UK doesn't realize the UK doesn't compete anymore just on business it also competes on lifestyle so if you've got money you can move anywhere in the world right first of all why would you be in the UK and run run your company from the UK it's just dumb it's just really dumb but on top of that you have to live for seven months in darkness and freezing cold ship weather so you spend your year in the dark in the cold paying for everybody else to live and this is what the UK doesn't realize and this is why I say breaks it is like probably the last opportunity for you guys to sort yourself out because people don't realize that in this global economy if you're not competitive you die and the UK is not just uncompetitive on taxis and attracting capital into the country and attracting entrepreneurs it used to be but it's not any longer it doesn't compete on lifestyle it's a crap place to live if you've got money and this nothing you can do about it you know for example like if you live the best lifestyle say in West London right and you're a billionaire and you come downstairs and you get in your roller and you've got your big your driver well unless you've got wings you're not avoiding the traffic like there's a certain thing on the weather there's no amount of money that can buy you out of that crap right you're still going to have to experience what everybody else experiences but everywhere there's so many places in the world and Singapore just one of them where if you're if you've got the capital and you want the lifestyle the UK can't compete with it that's why there's so much money there does anyone know what the balance sheet of Singapore is as a country like the assets that the government holds one trillion dollars of assets and the populations 5.5 million they produce nothing they have no agriculture they have no commodities they produce nothing one trillion and 5.5 million population I mean this is what you really have to understand like there's a big world out there and you are getting a a deal very deal I have if you are self-employed and you want to chat about doing something I've been through the whole process I can discuss it with you so I know what the Singapore government likes in terms of the profile of your business and what revenue and profits and tax you need to pay over a couple of years where they look at you favorably and say yeah we like you move come into the country if you want to talk about that later we can so building your own infrastructure tax efficient structures there's nothing negative about wanting to pay less tax I've never understood it there's nothing moral about and if it's called effective tax rates okay where you add up all taxes and say what do I really pay what actually goes into my pocket when you have an effective tax rate for an entrepreneur that runs a successful 50 percent gross margin business of eighty eight percent capital is going to leave your country and it's been going on for years it's just going to go somewhere else where capital gets a better return and the rich don't suffer the rich just move the people who suffer or the middle class and the working class okay let's move on to freedom freedom what is that underpin so these two secrets from the video learning to value your time properly and ditching the smartphone so you remember I was on the bridge London Bridge just staring at these humans walking like zombies into the office and walking back and the reality is you know we be through the mortgage example whatever they think they're squirreling away money and saving and putting it into an asset but what they're actually doing is they're swapping their time for nothing in return that's what they're doing because when they put their card in the ATM at the end of the month the day before payday it says zero and they look back and they say well how many hours did I work last month and it could be 200 hours whatever these like 200 hours for nothing so valuing your time is a central tenant of freedom you need to learn how to value your time properly if you work for a corporate or someone else the reality is is that you are not valuing your time yourself someone else's it's the labor market that is valuing your time and it's what they're willing to pay for your for your work so you're not in control of it now that doesn't mean you can't become wealthy you know one of the things I laugh at all the time when you see the comments people will say well didn't II do that didn't he didn't he use the work in the city he's telling people to do what to not do what he did this is stupid okay if you understand the amount of money that people were getting paid when I was doing it it was five to ten times more so it's very different when you're getting paid bonuses of two three million dollars per year in your early to mid 20s and now people are earning in the same position one fifty two hundred it's obviously very different so even back then I was valuing my time and I said yes it's worth the sacrifice now it's not because what do you get in return what do you get in return you get the opportunity to service a mortgage for the rest of your life which obviously from what we've learned today is not an opportunity you're not there's no self determination there there's no freedom you're going to the ATM every month and it says big fat zero and you've worked hundreds of hours for it to say that and your entire future is basically outsourced you're living in servitude you've got multiple bosses you've got your corporate boss you've got your bank boss you've got your pension boss you've got your central banking government boss everything you do is out of your control and you're just on the hamster wheel so remember this saying the most important business card you'll ever own is the one you stick in the ATM the point of the point I was trying to make there is that people just focus on all the wrong things a business card a title a job at a corporate what does it really mean it just means you're totally out of control and if you're not getting paid and it's not worth it and it says zero stop doing it do something else how much can you lose from zero zero it's really that straightforward because what it's what what's happening there is it means that you are valuing your time at zero which means you value your freedom at zero your action you're actually consciously making the decision I want to be a slave you're waking up every morning and saying I want to I want to do this to me that's just a lunacy smartphone this will be a fun one now when we did that interview by the way if you ever watched that video back I'd had about two hours sleep and I was really hungover so I couldn't really go into a great amount of detail in that interview but we'll go into a bit more detail about it here because people always kind of like commenting going well the smartphone can do this the smartphone can do that but it's all just completely irrelevant okay it's all to do with valuing your time okay so if you remember the two examples I gave let's just put a monetary value on your time and assume you make you set you spend a certain amount of time on your smartphone per day on chat systems on social media talking to people you don't really know about that doesn't really matter right come on I've been there as well are you server blackberry I got rid of it March 20 2013 unmanned like when I was in the business I was a slave to that blackberry like back when I was a professional trader we had them in 2000 in fact on the goldman sachs training program in new york in 2000 blackberry was just completely new and it wasn't a mobile phone it was like a little pager with a wheel on the side and our analyst program was the test was a test case and we were given them for the whole summer and every month we had to like fill out forms and reports about our consumer experience is it good for business bah-bah-bah so I was a slave to that black we went for a good 13 years and then I just gave it up because I just had an epiphany when I was in Thailand I switched off my phone for a week and I found myself sitting on the beach and at bars just coming up with unbelievable ideas and I was like okay well if I if I'm detached for a week and that happens what will happen if I'm detached for good so I tested it for a couple of months and what happened the first video series goes online for my company millions of dollars that would never have got done if I was just literally a slave to my phone and you guys would never have got it if I didn't give up my blackberry giving up your smartphone makes the world a better place okay so let's put a money for value on it 100 bucks an hour and you spend an hour a day on the phone talking that doesn't matter to people you don't really care about and by the way don't really care about you 36 and a half grand a year what if you're well if you're rich what if you make a grunt what if you make a grand an hour then you spend an hour it's three hundred and sixty five grand a year there's obviously a point where a smartphone because of its addictive nature and all of the ways that people can contact you here it might not just be you it's people bigots and making yourself available because what you're actually doing on all these chat systems is you're saying to the whole world I'm available for free and you're you are allowed to abuse my time you can contact me 24 hours a day whenever you want because I value my time at zero and you value my time at zero that's what you're telling the whole world so how do you get rid of that so if you want to break this cycle you've just got to go cold turkey there's that you just can't do anything there's no such thing here as owning a smartphone and deleting all apps if you delete a smartphone you just get rid of the smartphone okay so get yourself try it for a month or two this is what I've got it's a ZTE Chinese model my wife bought it last time she went to China she bought a whole bunch of them and we just keep them in the drawer but in Singapore I don't have a Singapore SIM card I have a UK SIM card why because it costs people money to send me a message so if you get a dumb phone get yourself if you can a SIM card that's out of outside of Europe because it'll cost people two dollars fifty to send you a message and all those people who were on shut systems before constantly badgering the out of you talking about stuff that doesn't matter about nothing it now costs them two dollars fifty SSN you a message what do you think is going to happen you're going to find out pretty quickly who these people are the funniest thing is is I've still got friends who send me a text and they'll send me like 10 texts in a row because on their phone they think they're chatting to me and they get their phone bill like a month later in it's like 180 dollars no they think they're on a chat system but they're SMSing me at $2 50 per message right what do you think happens a few months down the line whenever they send you a message they just say what they want to say in one message you're telling you're basically telling them if you want to contact me it costs you so when you send me a message it better be good it better be important if it's not it's going to cost you so you're basically telling everyone in the world my time cost money so you're valuing your time and all these people just disappear I got like was really extreme in 2014 I bought like one of these phones can't remem what mother was but it only stored 50 numbers only 50 numbers and when I was in bars and restaurants around the world and people were like ah can we swap numbers I was like okay I have to tell you something my phone only stores 50 numbers and I'm going to have to make a decision now whether you are stronger than the weakest person in my phone [Music] and I did this for about a year and you know what people were just not offended I was like listen I'm a busy guy I only only have 50 people in my phone and if you're not stronger than the weakest person in my phone you don't get him I'm generally speaking people were just not offended they were like all right yeah yeah well am i stronger than the weakest person your phone no and I just did it really to the extreme just to see how it went and the productivity went off the scale off the scale because you just don't waste your time with anymore in the modern day like the jet you know the younger generation they would kind of like addicted to smartphones it's 90% of their daily and if you just eliminate it you're free this is a very very simple choice to make it's very obvious when you look at it just your messages that you get per day that 99% of your discussions are just completely useless they don't add value to your life they don't make you wealthier the other person engaging on the other side they're not bettering their life in any way it's pointless so you basically got to train your network not to waste your time just train them that you're not contactable for random chats if they want to do that it'll cost them all so social media you know if you've got a desktop or a laptop okay just schedge all the time on a Friday and go into your social media and look at your messages and get back to people and get back to messages that means something if he doesn't mean anything you don't know the person or you don't know them very well whatever don't reply complete waste of time it's just schedge all the time per week so just deal with that stuff on your desktop or your laptop you don't need a phone to do that greeting messages so someone calls you your phone's off what's your greeting message well it should actually put people off leaving you a message I've had the same one for four years thought maybe almost yeah almost five years and I don't even say my name just go hi I'm traveling on business at the moment and I mean that I'm in various different international time zones so it might be difficult for me to get by to you please please leave a message and I'll try to get back to you within one week I can't remember the last time someone left me a message has it had a negative impact on my life no I've completely eliminated messages it's about me had a positive impact so cold turkey in terms of freedom it's the only choice if you really want to do it if you really want to give it a go you can't delete all apps and have a smartphone it's pointless because you're basically a recovering heroin junkie and you're walking around with heroin in your pocket you won't believe how productive you become you'll just be able to schedule everything more efficiently prioritize your social life actually becomes better as well and your family life because when you go to bars and restaurants you are the example and you're setting the example so you know you go to bars and restaurants and people are just sitting around in your group staring at their phone well when you go out you're not doing it and you're sitting there and if they're all doing it well they're the person who's being rude so you set the example and then they have to give you the time they have to speak to you they have to put down their phone and then family life as well you know if you've got kids who've got teenage kids or whatever if you if you do it yourself as the parent you set the example of what's socially acceptable and what's not and they'll get into the good habit of not staring at their phone for no reason for the whole of a meal when you're out with another family it's a very very bad habit it's to me socially unacceptable like I'm not going to waste my time going up with people for dinners and they stare at their phone the whole night while I'm there you I'm getting up and walking out the restaurant my time is too expensive so that was smart phones maybe not as controversial as other things have risk I Q this is very important as well principle number four you remember the conversation I had about risk in the ten secrets so knowing that risk is subjective and not two-dimensional so it's subjective to your own personal situation so let's just look at two people in very you know different financial situations looking at the same financial risk so let's say there's a bet of $10,000 and you can make in your upside on this bet 50 grand in a month so you can make a 400% return well think about it like this a person that saves 10k per year is gonna see that risk very very differently to somebody who makes $2,000 a day risk IQ is really important as a driver for becoming wealthy once you start understanding stuff like this the buying power buying power you've all heard the phrase you need money to make money this is what we're talking about you need buying power you need to be able to have buying power to take the risk and to objectively calculate risk if you don't have buying power you can't objectively calculate risk I'm gonna give you some stats but a completely true go and look them up Forbes you know Forbes where they measure wealth around the world and they've got the billionaire list there's also a millionaire list now obviously they can't name every millionaire in the world but there's a calculation they use which is different to the one that everyone else seems to use which is called net worth so the calculation they use is can you go to the bank right now and withdraw 1 million dollars in cash now there's only fifteen point five million people in the world that can do that out of a population of seven billion back to very back to the original point right at the beginning of presentation of superior systems there's five point five million of those fifteen point five in the United States so you think the US is a bad system it's the best system in the world you don't want Donald Trump to come over and visit the UK you need your head checking 5.5 million of those 15.5 are in the United States so let's include all the illegal immigrants and call the population 350 that's one point five seven percent of the population 9.5 million exist outside the US so let's take the 350 off seven leave six point six five billion roughly what's that point point one for 2% of the world population can go to the bank and withdraw a million in cash why is that difference to net worth well net worth is just paper wealth it's not liquidity it's not buying power so if you have a property that's worth two mil and you've got a mortgage of a mil are you a millionaire no because you're making the assumption that you can trade out at the assessed value it's not real until it's realized and your money's tied up the person in that situation where you're calculating your wealth is net worth assets minus liabilities and that's what you're worth it's paper wealth it's not liquid and the money is tied up the value is tied up it's not realized so the net worth person in that situation is cash flow pool I'm there trapped because they've got the mortgage they have to make all these payments every month they perceive risk very very differently to the person who's in the other scenario so it's much better to have 1 million dollars in cash then have a net worth of 1 million on paper that to me is just obvious or let's say liquid securities that you can trade out of very very quickly and realize 1 million in cash so within a day at the touch of a button and it's making 10% compounded per year and you're doing literally nothing to cut the money's just working for you now add on to that a business that just makes 2k a day now relative to the net worth person who saves 10k per year they see the same risk totally differently so this risk of betting 10 grand to make 50 grand in a month the guy who's got the mortgage and has a net worth of a million and his cash flow port and saves 10 grand that person sees it as a massive risk the guy who's making 2 grand a day just sees it as one week's cash flow Monday to Friday go to the office one day play golf the next day go to the office the next day sit on the beach the day after go out with friends on Friday after going to the office and then I've made 10 grand I've made 10 run anyway so if I lose it it doesn't matter because I'll make it back in 5 days the other guy sees it as a big risk and if they lose they need to wait another year to say that so they see that they could end up living in poverty because their cash flow poor and it's exactly the same risk nothing's changed apart from their own personal situation so back to the original point risk in the real world is totally subjective to your own personal circumstances you can't take advantage of opportunities if your money's tied up and you can't assess risk objectively you need buying power buying power gives you freedom and objectivity and consequently one of the stupidest things I've seen people do on the journey of becoming wealthy is when they make their first one or two million and then they just go and buy property for cash with that one or two million and they're left with literally no buying power so they're trying to get to ten or twenty or thirty or fifty and they have to go right back to square one again even though they own a property so when we're talking earlier about buying your dream life for cash you know if you make your first million and your dream life is a million you have to put it off you need buying power put it off for another five ten years get to ten fifteen million then buy your dream life for a million don't tie your money up in assets that aren't making money you need buying power and compounding last one hierarchy what does that underpin in terms of a principle well you'll remember in the video mainstream media we discuss that as it's useless and choosing role models that suit your own personal objective now this might be a controversial one this slide some of these slides are a bit nasty but we'll see how it goes mainstream media it's never ever been useful for making money what ends up in the new cycle is what happened yesterday your job as a money maker is to predict the future and make investments and decisions with your own capital so try and profit from that future if you spend your life consuming mainstream media it's a it's a negative for your wealth mindset it distracts you and this also links to acceptance as well you know it's one of the negatives of or one of the disadvantages of a lot of capitalist systems when you're in the capitalist system there's always in the media and see capitalist media why because it gets ratings and what the ratings get advertising revenue and what is advertising revenue money and what is money it's capitalism so it's completely hypocritical it's all oh and while we're on the point if you think that the BBC is objective you've been living under a rock for the last 40 years the BBC is scandalous it's scandalous that you are forced basically to pay its own a television and the money goes to them and they use that money to basically brainwash you it's a disgrace and it's force because you get fined if you don't pay it you can get banged up if you don't pay it it's a it's a disgrace it's honestly one of the big most cancerous pieces of infrastructure in the Western wealth it's terrible and I did a BBC show [Music] so believe me I know what goes on behind the scenes I know what goes on behind the scenes and I can't go into detail because I had a contract but the agenda is outrageous it's outrageous we can probably whisper about it at the bar mainstream media it's not objective it's for ratings and the structure is for shock value ante system to get ratings to get advertising dollars which is the system so it's totally hypocritical and it's a waste of your time you've got to seek out alternative sources now I can't sit here and give you a list of alternative sources because it's changing all the time you've just got to be smart enough these days to go online and consume what is giving you facts one thing is absolutely for certain okay and this is the principle of hierarchy okay one thing is absolutely for certain if you can't accept facts you will never be wealthy seek out facts and accept a fact as a fact don't waste your time mainstream media will just pollute you it'll brainwash you it just creates a massive destruction just always think in the background what's global GDP going to be next year well it's going to be eighty one point nine seven trillion dollars so why is that celebrity chef telling me why I should eat why is that newsreader putting a slant on this news story why did they say that certain word to try and make it look like a negative when really it's a positive it's only relevant it's all totally irrelevant if GDP is going to be 81 point what is it 81 point nine seven trillion in 2018 there's nothing mainstream media can do about that how much do you want that's the question just seek out the alternative media and the facts because you need freedom of thought and objectivity and it seeps into all areas of your life so just seek out those sources self-determination as well your propaganda that's pushed by advertisers especially and say the debt market it's the inversion narrative that they're offering you something that isn't a solution and telling you it's a solution so the opposite of a truth is what a lie it's not the solution and all these traps are laid everywhere for you and if you're stupid enough to walk into them good luck what about role models the we live in an instant and world we came up with that today the VIP lunch so in the interview we discuss celebrity okay and this is a kind of a bit a bit of a nasty slide the youth today I don't know sound like an old man harping on about the youth of today celebrity in terms of your own objectives they're basically just false idols and they're commoditized and they're disposable commodities um who's paying for it you to consumer you buy the products from the companies that advertise that get the on the channels or whatever the channels are that get the ratings that have the celebrity on it once the celebrity is gone once the celebrity is not getting the ratings they're disposed of they're totally disposable and by the way the vast majority of them are not rich you know it's like five years from now where will these people be ten years from now celeb celebrities the best celebrities have flashes of wealth but they've got no idea what to do with it and it always disappears so that's in the best case scenario these people are false idols they're not role models in fact most of them have absolutely horrific personal lives and the vast majority in the best case scenario when they make a lot of money they blow it up anyway in some way they always screw it up in some way and if your objective is becoming wealthy to have self-determination be your own person live life on your own terms and have the freedom you're the opposite of what they actually are because what what's happening with them is they're just being used and pushed around and being told what to do they're commodities they're disposable commodities so if you're misinformed generally in terms of information in the world because you're consuming say mainstream media and constantly constantly taking celebrity as mantra and you genuinely believe that a singing voice is the most important thing in the world or a mediocre acting talent you know someone's got the ability to smile at the click of a finger when the camera goes on if you think that's really important you need help like you need seriously serious help it's it's not important and those people shouldn't when they're standing on T V virtues signaling telling the whole world about how they should live and what they should be doing they're doing it for a reason they're doing it to stay relevant they don't believe any of it they're just talking and you're getting sucked into it and you end up creating and accepting a false idol so try to stay away from it especially especially you young guns the old the older people here today know exactly what I'm talking about because they've seen it in the 60s or 70s the 80s and 90s it's all just gone it doesn't exist anymore and what happened what's happening right now in the celebrity world it'll just disappear and it'll be gone it's never permanent it's all transitory it's all transitory I mentioned earlier this number the fifteen point five million people in the world that have the ability to go to the bank and withdraw 1 million dollars in cash they're your role models if you want to be wealthy not necessarily billionaires these guys not mention Indians of in the interview was how to find these people these people don't want to be contacted they don't go on whatsapp and just say yeah anyway anyone can speak to me at any moment whenever they want if they did that they'd be dropping all the principles that made them wealthy in the first place plus you know if you meet these people and you do somehow manage to get their contact details or whatever do you honestly think you're the only person sending them a message like they're receiving hundreds of messages a week and they don't anytime to speak to anybody or if they do they choose not to speak them because they just want a nice life but you won't believe how many messages I get on LinkedIn per week of business ideas people begging for money it's unbelievable and if they think I'm actually gonna reply like I just look at the first sentence and just whatever the true hierarchy of role models in this world that we live in today over 15 point five million people so this is if your objective is to become wealthy if your objective is not to be wealthy then they're obviously not your Ramos I hope the real hierarchy of role models in the real world that we live in today is the fifteen point five million people that you've never heard of because they're all liquid rich and they can do whatever they want they value their time they value their freedom they have buying power they know how to analyze risk and generally speaking the vast majority of them are happy much happier than people that don't have the million dollars of cash it's a lie to say that they're not so sitting down with these people and picking their brains do you understand the amount of times I get a message per week that says I'm dropping by Singapore in a few weeks have you got time for a coffee no I don't actually know or or a message starts off with I'd like to pick your brains about something you're kidding me right no I'm busy I'm doing stuff that's important and now that message might be important to them but it's not important to the person who's receiving it like these messages are just I find it ridiculous that someone expects you to reply all these people that you don't know or you haven't heard of who knows fifteen point five million of them in the world with 5.5 million in the US right they value their time you're not going to be able to sit down with him now it's very very different to have a role model where you can see someone visibly online or in media or whatever and you can emulate their habits and their behaviors and you understand their life story and what they've done to get from where they've come from to where they are that's very very different to having a mentor where you actually sit down with people and they teach you everything they know that's very very different if you want people to be your mentors it's probably going to cost you money because it's going to cost them a fortune in opportunity cost to just sit down with you for a couple of hours so just understand the distinction between a role model and a real mentor and don't forget we do live in an insane world where pretty much all the wealthy people that you see online they're not actually that wealthy now if you manage to find someone who is and they actually have all the things that we've discussed today the principles the 10 secrets and their wealthy and they've actually got the time to do it what are they going to teach you well they know what made them successful it was doing all the things that we talked about today so the five principles acceptance self-determination freedom risk IQ hierarchy and they're going to teach it to you but they know ultimately that they can't push you over the line you have to do it yourself so what do they do they teach you all the principles teach you all the good habits and secrets that you need to have they're having those 10 secrets that we looked at in the video having the five principles behind it they'll teach you all of that stuff but ultimately they know that at some point they just have to let you go and you either swim or you sink and that's the beauty of the system we live in it's available if you want it if you don't want it you get zero if you want it you have a chance and the rock the good role models and the good mentors those fifteen point five million people that exist that you've never heard of they will teach you that but they know at the end of the day you have to do it and you can make the world a better place by just creating a great product kind of great service that beats everyone else you can change the world by living in the cups of the system you can't change the world if you choose to live outside it and complain about it all day long for the rest of your life it's it's self-destructive so these five principles lead into everything they underpin everything in those 10 secrets it's a financial success in the video now if you want to come into the Institute and you want to take education in the stock market forex market and options market we do mentoring programs as well I don't do a lot of them anymore we've got mentors all over the world guys who have worked in the markets for years those guys will do as good as job as I can do in terms of mentoring you that's why they get hired they get hired on the principle that they are as good if not better than I am and I just run the company and if you really want to get Mentors intensely we do a vacation program in Thailand and the next ones in but we'll the next one that you can participate in is in October I'm actually going next week since-- Islands for the next one for ten days so you spend ten days with us and we teach you intensely how to make money in the financial market and then you also get twelve weeks after on the phone and then we have to stick to that principle we show you how to do it but then you've got to go off and do it yourself otherwise you will just never do it so guys five that's the five principles that underpin the ten secrets I'm gonna be at the bar hope you enjoyed the content and thanks for coming [Applause] you

Channel: InstituteofTrading

Views: 530,803

Rating: 4.8584533 out of 5

Keywords: 10 Secrets to achieve Financial Success, Anton Kreil, Million Dollar Traders, Goldman Sachs, StockMarket, FOREX, Hedge Funds, Currency, Bitcoin, Investment Banks, Finance, Money, Coaching, Training, Business Development, Success, Motivation, Inspiration, Billionaire, Millionaire

Id: hzFl0uDwAQY

Length: 130min 11sec (7811 seconds)

Published: Thu Aug 02 2018