Why the Rich Get Richer

if you were to take everyone's wealth in the market today meaning if this person is worth a thousand someone here's a ten thousand a hundred thousand a million a billion if you added everybody's wealth up in America you would come out with a number close to 90 trillion dollars that is a total wealth of America and by the way one percent of America controls thirty six percent of that ten percent of America controls seventy five percent of that and today I'm going to talk to you about ten reasons why the rich keep getting richer so before I get into I'm gonna do something I've never done before and here's what it is while I'm going through this you ought to be taking notes because in the middle of it or at the end of it I'm gonna be asking a question I don't know what the question is going to be the first person that sends me a tweet at Patrick big David the right answer I will be calling you and will be able to tell me the conversation today but it's got to be the first person so pay attention to everything I'm going through in this video so listen the topic of rich getting richer is something you hear about on CNN on Fox and MSNBC in schools teachers professors parents business everywhere these rich people they control all the wealth they're so greedy they all they want is power cars or land most Ferraris castles mansions I mean how much more can you have why is Bezos got a hundred and forty five billion dollars he can live off of $100,000 your income and then on the other side you know hey this this is why the poor doesn't have money because they don't study in there don't read books and why don't you pick up a business book and find out how money works why do you blame the rich why don't you pick up some of their habits that they have why don't you work more than 40 hours a week and so this thing goes back and forth right and so before I get into the ten reasons why the rich keep getting richer I want to give you some data I want to give you some data for you to be looking at and hopefully this will happen with the argument because in mice in my opinion I believe the gap of rich getting richer is just gonna get wider and wider and wider you'll find a widest as I go through some of these numbers so if we were to take the top 1% richest people in the world not America in the world top 1% you would need to have somewhere around 750 $3,000 to your name now having said that data came out breaking down which country has the most people with 750 $3,000 to their name and here's what the top 10 countries looks like at number 10 Korea has 1 million people with 750 $30,000 to their name Canada 1.6 million Australia 1.7 million italy 1.9 million china with 1.4 billion people living there they only have 2.7 million germany 2.8 million france 2.8 million UK 3.3 million japan at number 2 with 4.5 million and you ready number one america 19 point 1 million americans have a minimum of 750 $30,000 to their name which by the way here's an interesting stat if you take the rest of the countries on the top 10 list and you add them up they still don't have as many people that have 750 $30,000 to their name as America does and so the question becomes why is that by the way most of the other countries run a socialistic economy America still till today runs a capitalistic economy which gives the average guy like me to go out there make money and hey all of a sudden you have 750 three thousand dollars to your name because the market allows people who bring value to go get that kind of money for themselves if our wealth was divided based on US land here's what it would look like one percent of America would own this part of the land nine percent would own this 30 percent would own this on the bottom 20% would own that bottom part you see like right there it looks like Texas and 40 percent of America would own that little red dot you look at the bottom so you know how you look at that red dot that red dot my family my mother my sister my dad we were a dot of the red dot let me explain we came to America with barely five thousand dollars toward him I mean literally we were living with family and then finally we found a place to live that was one bedroom we had nothing to our name we didn't own a car we had nothing I walked to school every single day from Broadway all the way up Chevy Chase to Wilson junior high school because nobody dropped us off everybody's kids their parents would drop us off I never got AB matter of fact I've never been dropped off to school let me say this again I've never been dropped off to school in America ever from seventh grade on I've never been dropped off to school we didn't that kind of money and so I worked at Burger King I worked at Bob's but I worked at Hagen there's that one to the military I had one point a GPA I stayed in the army I was gonna say 20 years I got out a friend call me hey come and try something that I got into sales and I'm looking at all these things I see these nice cars on movies with Tom Cruise and they're stealing this Ferrari I'm watching you know Gordon Gekko but box and all these cars and these homes and men what if one day we can live in a big house what if one day we can have a Ferrari or Lamborghini in all this other stuff and there'd be two different sides friends at by the way in a military out of barracks one group would say well you know these rich people men they're greedy they abuse a system they do this they do that they do this and this other side there was a group of us me Bradford a couple of us yeah but what if we could do this well who cares we should go do this one we were dreaming right we were dreaming what if this could take place I realize the big 1% of America the top 1% of America they're curious they want to find out how to get there so just like I said earlier that the gap is gonna get wider and wider I am Telling You that 90 trillion dollars very soon is gonna be 200 trillion dollars 500 trillion dollars and the only question you got to be asking yourself in the next 5 10 15 20 years what piece say that's gonna be yours you'll see why I'm saying this as I go through these 10 points point number one is exponential growth by the way this point a lot is the reason why the gaps gonna get wider and wider and wider you can skip everything else this one point along I've talked about in another video called 20 rules of money this is why the gaps gonna keep getting wider and wider and wider look very simple say I have ten thousand dollars say you have ten thousand dollars okay we are both 25 years old both of us have ten thousand dollars I choose to put my ten thousand dollars in an account that gives me three percent you choose to put ten thousand dollars in an account that gives you twelve percent it's only four times more so meaning whatever you get you should only be four times more than I should be right so let's take a look at what our money looks like twenty four years later twenty four years later my ten thousand dollars barely becomes twenty thousand dollars you ready your ten thousand dollars is officially a hundred and sixty thousand dollars that's eight times more even though the interest is four times more now let's continue to go forty eight years and see what happens twenty four years after that my twenty thousand becomes forty thousand you ready to see what happens $260,000 it is now two point five six million dollars that's two point five two million dollars more than me by the way let me say this number so I was getting three percent you're getting twelve percent you're already getting four times more interest than I am you realize how much your money is gonna be more than mine by forty eight years from now sixty-four times more money sixty-four times more money so think about it this way if I continue with the same habit of getting three percent for another twenty four years look what happens and another twenty four years for what happens and another twenty this why the rich keeps getting richer so unless education in the high schools and junior high schools and colleges change and start teaching these kids about the basics of money the disparity ain't stopping and there is nothing anybody can do about it including CNN MSNBC and half the professors at these universities because they keep bitching about this stuff but no one's talking about money no one is talking about let me teach you how to get 12% let me teach you how to get 8% everybody's just complaining whining without any solutions point number two this one's very easy its positioning once you get out of college once you get out of high school you have a choice on what you wanted you can go get a regular job you change your you trade your work for hours I make fifteen bucks an hour twenty bucks an hour thirty dollars an hour and that's fine and a lot of America is just chasing that there will pay me sixteen dollars she guess what I got I got twenty two dollars here and there will pay me twenty two I've got a better job and I put on making twenty four year I was making twenty five 1932 they're chasing this right and what they don't realize is that's not how you create wealth there's got to be an element of you saying I know for a fact if I position myself here and if I can become an entrepreneur or if I can get equity or if I can get ownership and how do I get that part this can lead them to something bigger for myself that's why I say positioning if you keep trading hours for a dollar that you're getting paid you're gonna be limited there's got to be a part where you go out and position yourself properly I've said this story many times I live in wealthy communities and in these wealthy communities everybody I talked to I asked him how did you make your money you know I made my money because I started a business great I made my money because I was part of a startup and guess what happened to this startup I was there for five years I ended up getting piece the company five years later the company was bought by this company four billion dollars I got my six million dollars I got my $100,000 I got my 2.2 million dollars it's positioning so wherever you're working at ask yourself the positioning of the environment you're in is it can't see going out with there's a possibility for bigger upside or is it linear hurry up and change it and if you choose not to change it then don't be surprised if you don't have 750 $30,000 because you chose the position you're currently in what number three is long-term thinking the best example of long-term thinking is one of the richest men in the world and that's Warren Buffett I want you to look at this chart that I'm gonna put up and the part I want to look at is how his wealth grew from 18 years old to his 81 billion dollars today that doesn't include the billions of dollars that he's given away to charity so let's take a look at this guy named Warren Buffett one of the richest wisest smartest investors in the world how did you amass as well so at the age of 19 he had $10,000 to his name the first million dollars he made he was 32 years old give or take fast forward to the age of 40 years old you'll notice he had a thirty four million dollar net worth right now watch what happens here from 34 million dollars the next year or two it goes from 34 million dollars to 19 million dollars I think as much as we spend time talking about how rich this man is we forget to talk about this moment in his career let me explain to you why do you know how many people in the world when they drop on 34 million to 19 million dollars that's 50% of the waters gone what do you think most people do they cash out they take their money out they listen to news the news the same world you know it's the world's coming to an end war is coming through you know this is what's gonna happen that's what's gonna happen price of oil oh my gosh panic panic panic panic panic everyone reacts this guy says I trust my discipline because I'm a long-term thinker and watch what happens here he goes from 19 million dollars to 67 million dollars two billion dollars at fifty six to eighty 1 billion dollars today let me compare his net worth to some of the countries in the world watch this year Guatemala he's got more than Guatemala Costa Rica Luxembourg Slovenia Serbia Tunisia Ghana or Gua Kenya Ethiopia Lebanon Bulgaria boos Pakistan Croatia Lithuania Warren Buffett is beating those countries one human being is beating countries I wanted to go back to Forbes 400 list back in 1982 when it first got started here's what it looked like so the total net worth back in 1982 a Forbes 400 was 93 billion dollars they you took all the 400 added it up it was 93 billion dollars and the richest man on that list Daniel Keith Ludwig he had a net worth of two billion dollars by the way here's the kicker you ready Daniel Ludwig wouldn't be on today's Forbes 400 list and out of the 400 names back in 1982 only 36 names are still on the list today 35 years later so now let's take a look at what the total net worth of today's Forbes 400 is you ready from 93 billion dollars to today 2.5 trillion dollars that's five doubles not not just 500% that's five doubles 93 billion times 2 times 2 times 2 times 2 it gives you 2.5 trillion dollars which tells us 35 years from now by 2050 3 the Forbes 400 list total net worth is going to be 80 trillion dollars so the only thing you ought to be thinking about is the following thing if 35 years from now that numbers gonna be 80 trillion what piece of that 80 trillion is gonna be yours what piece because think about it if that 80 trillion is only 400 people in America what do you think the entire net worth the entire wealth of America 330 million people is gonna be in the next 35 years you know how big the opportunity is for the right person watching this if you listen to point number three and you say look exponential growth was number one got it positioning was number two got it long-term thinking was number three got if you turn off the video today you didn't watch the rest those three principles is what makes these guys the kind of money that they make so can you really think long-term or immediately something that goes wrong to disappear and you go panic and you go back to your corners oh my gosh I can believe this is happening to me but for those of you that are watching this that are saying I'm gonna be disciplined to be a long-term thinker you're gonna put up numbers experience certain things in life that you thought were fantasies but it's gonna happen to a few of you number four this one I'm not gonna spend a lot of time on because it's very self-explanatory regrets minimization I've spoken about in a couple other videos minimize the number of regret when you look back you don't want to be able to say I messed up here with drugs I did this year I did the divorce I did that oh my gosh I got it so many dumb mistakes I made that you could have prevented yourself on making it for some of you that are saying I feel bad because I just went through divorce three years later you make me feel bad our current president is on a third marriage you're okay just minimize the amount of regrets that you're gonna have because it doesn't stunt the momentum that you have your best friend and accumulating wealth as momentum don't get in the way of momentum water it sure gets bigger and bigger and bigger number five specialized skill very simple most people generalize this is specialized skill you got to figure out something that you specialize in what is it communication selling finance real estate hedge fund stocks bonds what do you specialize in specialize in a skill most of the guys that we talk about they specialize in a skill warm buff and investing Trump wealth real estate you know you look at Zuckerberg social media he understand the concept of the Internet you understand what he's doing with that everybody has something they specialize in what's your specialization number six anybody can learn this concept here and it's concept here is your contact networking look I can take my business back to 1999 when I went to a man's house it was a millionaire and he had a big party and I made a lot of relationships after the relationship two years later he introduced me to a guy that introduced me to a guy in 2003 that contact is what led me to making thirty million dollars just off of one sale you know I went to an insurance conference a few years ago met a guy we didn't hit it off we had a terrible call together one time I'm talking a 5-minute call that was horrible horrible call I said we'll never do business with this guy he came back saying I still want your business what can we do to make this work we made it work fast forward he's the one that ended up putting me in contact with De La Hoya and couple other guys that raised ten million dollars for business these were contacts we networked we went through it look at Zuckerberg he goes to Harvard meets a kid named Edward meets the Winklevoss brothers that leads to Facebook you look at Warren Buffett who networks and meets a guy named Charlie Munger who he thinks is smarter than he is and that bring those two together build the empire that they built everything's about networking in your context especially if you want to increase your wealth let me put it to you this way it is very difficult for billionaire to befriend somebody that's for $20,000 very you know why because the experiences are different and level of thinking is different if you hang with a billionaire you're twenty thousand dollars somehow some way is gonna get hired somehow someway this thing gets hard because you're borrowing they're thinking you're borrowing who they know you're borrowing their association so if networking is an area you struggle with I made a video titled how to network like Casanova go click on a link below and watch that video how to network like Casanova number seven leverage everybody watching is leverages other people let me explain to what I mean by this a father watching TV or football on a Sunday leverages Sun as a Sun get me a beer that's leverage a person who goes to restaurant and sits to have food with another friend leverages the waiter or the waitress and says can you please give me a diet coke and a bone-in rib eye and lobster mac and cheese and that's for me thank you so much you leverage the waiter or the waitress and in return for the leverage you pay 20 points 20 percent of the bill to that waitress that's leverage everybody leverages except the wealthy and the rich do it at the highest levels let me explain to you you can only work 20 hours in a day the hardest-working person in the world is limited to 24 hours in the day you can't work more than 24 hours in a day but they realize if you really want to leverage time if I want to work 2,000 hours in a day I need 250 people who work 8 hours in a day it's basic math 20,000 hours in a day I need 2,500 employees 200,000 hours in a day I need 25,000 employees and they keep leveraging over and over and over and over again and it gives them an unfair advantage over everybody else however there's not a single person watching this that can't apply the concept idea because you're already doing it at the lower level why not do it at a higher level number 8 this next one is about reinvesting their money meaning they make their money work for them 24/7 I did a video titled how to double your money this is the area where they master on how to double their money constantly over and over and again money doesn't sit for too long for them and if it is it's intentional because they believe a downturn it's coming around the corner or they buy puts because they believe the market is about to go down but money is always working for these guys it doesn't just sit around you know allowing the bank to use that money to make money they make that money work for them number 9 Sam Walton at for kids you know it's poorest kid today is worth thirty nine billion dollars struggling financially poorest kid today is worth thirty nine billion dollars so is this something where you know the media comes back and politicians come out and say it is not fair for a kid to get all the money from his daddy or his mommy wait a minute let me ask you this question if your mom or your dad was worth 160 billion dollars would it be unfair if she gave you 40 billion of it would you be upset would you say mom it's not fair for you to give me 40 billion dollars it's always unfair if it's the other guy's kid right why don't we position ourselves better so our kids get the wealth because I watched a video the other day a guy was in you know southern part of Chicago bad community was teaching all these guys that are trying to make their lives better he was teaching them the fact that life insurance transfers well to their families so rich people buy as much life insurance as they can because when they die their kids get ten million dollars eight million out of six million dollars five million dollars and the kid has an opportunity and advantage against everybody else that he's competing against what's wrong with that they understand wealth transfer this is why you see families that become richer and richer and richer because the world keeps transferring to the next generation over and over and over again something everybody watching this can do you just got to be intentional about it and last but not least number ten I've been talking about this wart in a lot of videos lately whether it's with Arthur Laffer the former economist for Ronald Reagan George Bush Jack Kim Arnold Schwarzenegger eat all this topic a lot whether it was with the mayor of Frisco how they took the city from 5,000 people back in 1990-1991 to 180,000 people or whether it was Jerry Springer or Dennis Prager we talked about this topic and that is taxes I'm gonna keep talking about taxes until you pay attention to taxes because it's a big difference let me explain to you in the state of California if you got a million dollar bonus they tax you at 50% half a million is gone if your Realtor you make a million dollars in the state of California as a Realtor they take thirty five percent you keep six fifty they take three hundred fifty thousand dollars all of these guys in Silicon Valley who say tax everybody tax to people this is in this is that all the stuff that they say about raising taxes they only give tax twenty-two percent because it's capital gains taxes is about positioning how you position yourself to pay the lowest amount of taxes possible to the realtor in California that pays 35% guess what if you were in Nevada you would have saved yourself 13.3% if you were in Texas if you were in Florida you would have saved yourself thirteen thirty percent was 13.3% on a million dollars a hundred thirty three thousand dollars over a ten-year period 1.3 three million dollars how much is college education say two hundred fifty grand for the best schools you can have six kids if you want then you can still forward to sending to that best school because of taxes they pay attention to taxes and the rest of the world doesn't so before I ask you to question and see if anybody is gonna get the answer right and tweet me at Patrick mid David I'm gonna give you two videos I want you to watch as well one is 11 skills millionaires master that's a video you must watch and the other one is how to make a million dollar your income those are two other videos I would watch that has everything to do with today's video now having said that let's see who's ready for the question I'm really curious who's gonna answer right off the bat remember it's not just commenting below you got a tweet you got to tweet me the right answer here's a question back in 1982 who was the richest man on the Forbes 400 list tweet me the right answer at Patrick mid David and the first person I'm gonna call you will have a 10-minute conversation together today having said that if you haven't subscribed that a channel do so thanks for watching everybody take care bye bye [Music]

Channel: Valuetainment

Views: 238,843

Rating: 4.8895555 out of 5

Keywords: Entrepreneur, Entrepreneurs, Entrepreneurship, Entrepreneur Motivation, Entrepreneur Advice, Startup Entrepreneurs, valuetainment, patrick bet david, rich keep getting richer, robert kiyosaki, tedx, cash flow, cashflow quadrant, warren buffett, why rich people

Id: NFSYrLDj_sk

Length: 21min 11sec (1271 seconds)

Published: Tue Jul 10 2018