The 7R Theory of Creating Wealth! | Dhaval Bathia | TEDxSIUKirkee

good day everybody the theme of dead is ideas worth spreading and today I'm going to show you a very powerful idea which has changed my life all together and simply put this idea is about creating wealth in your life without putting efforts it sounds very interesting how to create a wealth in your life without putting efforts you know losing money is the third biggest fear in my life the first two being fear of her life and fear of my mother-in-law and ever since a young ever since being a young boy I was always a programmed the money is very tough to earn you know money doesn't grow on trees why are you wasting money it's very tough to earn money but as I advanced in life I came across certain techniques of people were actually created wealth in their life by not putting continuous efforts and we shall see it today we call it the seven our theory of wealth creation but before I go to the theory I want to share one very powerful story with you written by American author Burke hedges it's called the parable of the pipeline so first we'd have a look at the story so it so happened that there were two boys Bruno and Pablo in a village who are unemployed so the mayor of the village calls them Monday and says we have a crisis we need water in the village the village tank is empty we need water from a nearby river and every day both of you will carry water from the river and put it in the river tank and for every bucket of water that you carry you will be paid some money it sounded like a nice idea and what groom and Pablo agreed to it so from the next morning both of them took their pockets and they started going to the river filling the water from the river and empty it in the village tank again going to the river again everything in the village stank and for every bucket they were paid money this way for a few days have you realized it's a very tedious process and he thought why don't I build a pipeline if I run the pipeline along the way from the river to the water tank then the pipeline will carry water I don't have to carry it anymore so he goes and he shares the idea with his friend he says look if he build the pipeline then we don't have to put efforts on a daily basis the pipeline will carry the water for us but Brunner was not interested because you would have had to invest time money and energy in building a pipeline he was happy carrying his buckets so he tells Pablo you please go ahead I am happy the way I am so to cut a long story short Pablo starts working hard despite of criticism despite of ridicule he builds a pipeline and slowly to start spraying from the pipeline day in and day out Pablo becomes a free man when he is sleeping his income his own pipeline is carrying water for him when he is on a holiday his income his own when he spotting with his friends his income his own bruna on the other hand the day he takes an off from work his income becomes zero the day's sick he's tired his income becomes zero and Pablo doesn't have to bother about all that so slowly Pablo starts building the pipeline not only to his own village but to all the villages around and so many people like Bruno get unemployed and then will tell me what's the big thing you know it's obvious that you should I build a pipeline remember friends 95% people in the world a bucket carriers 95% people maybe even more 5% people are the ones who have created pipelines in their life and today we will see the seven our theory on how you can actually create pipelines so we have the difference between what we call an active income and what we call a passive income for an active income you have to act all the time like Bruno the day you are asleep the day you wanna party or a holiday the income stops the day you retire come stops after your death your income stops even though a child cannot be inherited but the day you have a passive income even if you are sick you are sleep you are on a holiday you retire your income is on you die your child will inherit your pipelines and his income will be on okay so passive income is what we're going to focus on now passive doesn't mean asking your dad to passes well to you right we have a different interpretation of passive income which we will see in the 7r Theory there we go so it's mentioned in my book he swam with sharks for an ice-cream but for the first time I'm presenting it to the audience we have seven ARS rate remuneration replication rent or royalty rights and returns each of this word begins with an R and we shall see what this stands for so prior to the Industrial Revolution we had only two kinds of incomes okay we had something called as a rate and we had something called as a remuneration although this whole Goods more for the rate like this blazer will be a rate trouser will be a rate short has a rate and there's no effort services were given remuneration a doctor a lawyer everybody got an immigration so these two incomes existed I read another Malaysian but something very interesting happened with the arrival of the Industrial Revolution you can see it and read it is called a replication so the effort of the man got now transferred to the machine so previously if you wanted to make hundred copies of a paper you have to write hundred times but came the photocopy machine you make the paper once and the machine makes it hundred times for you if you see around yourself on the theatre artists they are very very talented but a theatre artist every time he has to earn he has to go onstage and perform today he performs in Delhi tomorrow in Mumbai then in Chennai then in Kolkata the daily does not perform as income become zero Shahrukh Khan was a theatre artist before and he always used to struggle but the day he came to movies and in movies and films you can replicate you can print DVDs CDs prints you can distribute all over the world and you can get income from that many millions of pipelines so replication changed the game the Industrial Revolution and now in a current scenario we have the other four incomes rent royalty rights and returns if you use them in your life you will be able to create a world by putting minimum effort you just create the system and then the system works for you let the see each one of them very very interesting so the fastest rent we all know this right you have a spare property or a spare flag or a spare asset or a spare equipment you give it on rent and your income comes are you working no if I have a spare property my property generates rent for me I am not working whether I'm sleeping whether I am on holiday every month I get the rental income free without me putting any effort and that becomes my extra pipeline in my life so rent there's a wonderful way of creating passive income you have a property or vehicle or an equipment you can rent it property is the best because you also get price appreciation on your property second does royalty now how many flip a candycrush right we all play candy crush you will be surprised at the makers of candy crush are owning anything between $500,000 to $800,000 every single day every time you download that life on your app a certain portion of your money goes to the makers of candy crush or for that matter any app in the world Apple has now a revenue stream which is more than the GDP of 150 countries simply because every time anybody in the world downloads an app a certain portion as royalty goes to the parent company you know I am an author I rode in five books and I wrote my first book when I was 17 years my second book when I was 19 and my third book when I was 20 so before graduation I was getting enough royalties and pay for my education I never had to ask my dad for a loan for my studies royalties were coming I used to study in college every month publisher gives cheque and I can study further so people are putting videos on YouTube every viral video is your pipeline someone clicks on the video YouTube will give you money people are putting photographs on stock websites and earning money people are using their blogs to generate wealth so app creation YouTube we are living in a digital world any book on Amazon download it any part of the world you may be sleeping in India its daytime in the US someone downloads your book and the money comes in your bank account so royalty is a beautiful way of owning if you have any creation any intellectual property you can capitalize on it by using royalty third is rights right we all know this rights includes your franchise e franchisee rights brand rights and your licensing McDonald's for example in the 1950s when they started they were just ten McDonald's and then slowly over a period of time they started giving franchises all over the world in Australia in Finland in Malaysia in Russia today there are 36,000 McDonald outlets in the world and every time you buy a burger or a french fries that money a certain percentage goes to the parent company imagine the volume the revenue share that is like 36,000 pipelines working for you day in and day out just by creating a brand by giving the franchise but look at Harry Potter JK Rowling before hyping Harry Potter was financially struggling but after Harry Potter became a brand she used rights to an amazing level on every book sold of Harry Potter JK Rowling got a royalty not only that she took Harry Potter and she went to metal college and said ok you make Harry Potter toys give me a few million pounds she went to Electronic Arts and says you make Harry Potter games you give me a few million pounds she went to Universal Studios and said you make a Harry Potter theme park and give me a few million pounds so she used the brand and in the few years JK Rowling from being a struggling woman became one of the richest women in the UK power of rights and the last which you all can use whether you are a small employer whether you are an entrepreneur whether you are a corporate very easy some think that we have learned from our grandfathers and grandmothers since ages it is called returns you know my father is in the stock market he told me that if in 1970 you would have invested ten thousand rupees in the shares of Wipro today that money would have become 300 crores that's a lot of return Warren Buffet says interest is the eighth wonder in the world his berkshire hathaway shares in 60 1960s were about nineteen dollars at the end of the century it appreciated to ten thousand dollars so your returns includes everything your bank fix deposits stock investments debt is very safe so you have dead bonds investment in gold investment in property and even investment in art no heart is something that is catching up like a wildfire so interest dividends and appreciation so if you use this seven or theory or repeat rate remuneration replication the old ones and rent royalty rights and returns you can generate a wealth for yourself Robert Kiyosaki said very nicely he said more people work but rich people Network repeated for people work rich people network through the network the power to keep on earning and I'll tell you my own story very early in my life the seminar model is working for me and what I have decided now is I have a lot of free time I don't work hard I have no job no business nothing my royalties CDs DVDs internet rights everything is working for me so I've decided I've embarked on a mission and that is to educate as many students as I can the seminar theory has given me freedom to pursue my dream to educate India and to educate people all over the world the empower is the well-to-do everybody friends in the last 15 years single-handedly me and my team without charging the single cent or without accepting the single rupee as a donation we have 10 students in 12 countries reaching out to 389 schools we have trained 12,000 teachers last year I got my name in Limca Book of World Records for training in the maximum schools in the world I got my name in the Guinness Book of World Record for training the maximum schools and students both in the world and ladies and gentlemen with your good wishes very soon I would be one of the very very few people in humanity will be reaching out to 1 million students until date not one rupee has been charged and not one cent has been taken as a grant or donation I hope you like the seven art theory and please spread it to as many people as you can I don't want any rights I don't want any royalty I just want your blessings and good wishes in return thank you so much thank you [Applause]

Channel: TEDx Talks

Views: 633,166

Rating: 4.8410559 out of 5

Keywords: TEDxTalks, English, India, Life, Achievement, Benefit, Business, Career, Change, Creation, Creativity, Curiosity, Development, Economics, Education, Entrepreneurship, Finance, Future, Ideas, Innovation, Intelligence, Investment, Money, Passion, Progress, Revolution, Success, Teaching, Work, Writing

Id: E8xFo5lZGDA

Length: 14min 15sec (855 seconds)

Published: Wed Dec 21 2016