4 Things Wealthy People Do With Their Money

4 Things Wealthy People Do With Their Money


What’s up my friend. Kris Krohn here and
today i’m talking about 4 things that wealthy people do with their money. When
I was in college young, dumb and poor, I quickly realized that people with money
were doing things very different than people that didn’t have money. And I
wanted to know what the wealthy people were doing because the wealthy people
had things that I didn’t have. So, one of the things that I started doing was
finding mentors. I started finding people that had means and abilities that I
didn’t. I was looking for Mentors and I want to share with you today what one of
my billionaire mentors has taught with me.
Check this out. What normal people do when they get money is they pay their
bills, right? I mean we treat our phone payment bill and our rent or
maybe our house mortgage or a car payment. These are the things that we go
to jobs for. But listen, if you’re going to a job to get money just to pay your
bills so that you can sustain life, you’re never going to get ahead, you’re
never going to get where you want to go. So you can’t just focus on bills. This is
one of the four things that of course wealthy people will do. But there’s
something more important that the wealthy people do. This is mentioned in a
book famous book Richest Man in Babylon. It’s called, “Pay your self first.” So even
before you actually pay bills, you’ve got to pay yourself because if you don’t
then all your money will what? All your money is going to go to bills. Now, think
about that for a moment. If all you’re doing is putting your money at bills
then you’re never going to be anything other than the person with the job
paying bills and that’s not going to get you in life where you want to go. Now, the
wealthy if they pay themselves first and they’re not using that money for bills.
What are they using it for? I’m going to share with you 2 things. If this is
number 1 and this is number 2 then paying yourself first, the wealthy are
doing two very different things. Number 1 is they’re putting money in savings.
And I want to share with you exactly what savings means because it’s not just
money in a Sleep Well At Night account. It’s actually a form of investing for
them. But the second thing that they’re doing is they are investing their money.
Which means they’re putting in their money
a different bucket. Now, I retired at the age of 26 because of what I’m about to
share with you right now. Because I was the person just managing bills and then
I said, “Oh, don’t just put you know, pay bills.” Number 3, put money in savings.
But the wealthy are paying themselves first and then they’re putting money
into their investments. And at the end of this video, I’m going to share with you
probably the most important thing I put my money in that I’ve learned from
wealthy. I mean, let’s let’s not kid ourselves. The world’s wealthy have
created that number one first and foremost through real estate investing
and there are reasons why. So, instead of just paying your bills, if you’re going to
pay yourself first, how much do you allocate to savings? How much you
allocate to investing? That’s up to you. I mean, ultimately, you need to get 3/6 months. Eventually a year’s worth of savings in the bank account to take care
of yourself. But one of the things that the wealthy people are doing here is
they’re doing what’s called “BOLI”, Bank Owned Life Insurance. There’s a specific
type of life insurance policy where you can dump your money in and it’s sits in
almost like a savings account. And the savings account is producing on average
6+ percent a year. Now, when you drop money in your bank, what are you
getting on it? You’re probably getting a quarter of a percent. Maybe a half a
percent. If you put it in a CD, maybe they give you a whole percent. But what’s the
bank doing? The bank is taking your money and they’re leveraging it, they’re
investing it. And so, through my, through my whole life,
early cash out life insurance policies all dumped money in form I Sleep Well at
Night account. And I do that so that I’ve got my coffers filled with money that if
I lost my job or if this happened or if I needed money real fast I could
actually get it. But what am I actually investing in? Ray Dalio
who is a billionaire who has created… I don’t know how many billionaires he’s
created. But I do know that he has returned like tens of billions of
dollars to his investors over the years. He is a professional investor. And one of
the things that he says is that, “If you can diversify your assets into 15
separate asset classes with asymmetrical risk that that will eliminate 80% of your risk. Not investing is the riskiest thing that you can do. Not
investing is guaranteed to get you where you don’t want to actually be in life.”
You have to take a risk to get where you want to go. Because
check this out. If all I’m doing is putting money towards bills and I’m
putting my money towards savings just those two things,
guess what? 40 years from now all of my bills are still probably covered, my
savings is built up to a little. But think about it, if you’re like the
average American who spends $44,000 a year and you
want to retire for the next 20 years, then you’re going to need a million dollars
or 44 grand times 20. 20 years. And you can’t save a million dollars with the
system. You have to grow a million dollars and that happens through
investing. Now, I did want to share as a bonus today the fifth thing that I put
money in that I think is the smartest and wisest. And that is my real estate.
The reason why is this: Imagine a scenario real quick. I just want to show
you this. Imagine a scenario where like my very first house. I bought a property
that had a value of a $150,000. I purchased it for a $110,000. Now, the difference between 150 and 110 is
$40,000. We would call that equity. At the time was making less than 20 grand a
year. So, $20,000, that was… That… If that’s what
I made in a year getting 40,000 and equity on paper, I was worth twice as
much as I could earn in two years working full-time. But not only that. This
house, when I actually moved out of it and rented it out, I was earning a $550 a month cash flow. So, not only did my net worth go up
but I was getting paid 550 a month. Couple years later, I sold this home. I
made $65,000. That $65,000, do you know
how much money I put in to get that 65 grand back? I put in $5,000. I put in 5 grand and I got back 65,000. I was
that 13 fold return on my money. How did I do that? Well friends, that’s what real
estate does. It enables you to act. So when you look at what the wealthy are
doing today, yes they pay their bills, yes they put money in savings. But what
they’re really doing is they’re investing and then you have to ask where
are they investing and where are they putting that money? Friends if you want
to know how we retired at the age of 26, that is something I can show you how
do. Subscribe to this channel and I’m going to walk you through in all of my
videos, all the different ways that I make that happen. What’s allowed me to
travel around the world. Drive just about any car that I want. Right now, I’m in the
market looking for the next car that… That I want to drive that really suits
me. And I just feel really blessed because I can pretty much afford
anything that I want right now in my life. And it’s because of the real estate
investing that has made it. So make sure you are a subscriber because I’ll
share with you exactly how I’ve done it and exactly how you can do it. And for
those of you that say, “Hey Kris, I don’t want to waste any more in my life. I want
to move a lot faster. How can I do that?” What I want you to do is I want you to
click the link in the description below. When you go there and click on that, I’m
going to give you access to my free game plan report that will show you how I
retired in four and a half years. And how you can too. And it doesn’t matter whether
you’ve got money or like me you’re starting totally broke. It’ll actually
show you what the wealthy are doing and what I did to create the lifestyle of my
dreams and how you can too.

25 Comments

  1. Kevin America says:

    Great content sir

  2. Tom Siem says:

    what about the market crash?

  3. GAME INSIDER says:

    plz make a whole video only for real estate plzplz

  4. YourMom says:

    I am your mom😰

    Sike thats the wrong number🤭🤭

  5. Nokka Mies says:

    Im 20 and can't wait to get started RE! Thank you Kris for shoving me the way!

  6. Gaurav Singh says:

    Hey, where is the PDF of your plan its not available on your website..

  7. Rusty Shackelford says:

    Just that not everyone has 100 k so start with

  8. 7,075,870 views says:

    tinx

  9. Gustas Misius says:

    im 14 yr old and i love your vids

  10. Saeedul Karim says:

    Kris Krohn please make a video on explaining what down-payment is….. just for those who dont know about it, including me.

  11. Matthew Matthewz says:

    Reinvest 100%.

  12. Saeedul Karim says:

    Kris… i also need to know if the procedures you've given in case of real estate investment can be followed internationally or just in the US.

  13. IG IAMTONYBITSS says:

    you are my mentor

  14. Anonymous 1 says:

    Some people say to save what’s left not pay yourself first

  15. Caleb Woodson says:

    I'm 13 and watch your videos for great inspiration. Thank you Kris so much for making these videos

  16. Paul Olson says:

    Look forward to seeing what you decide on for your next ride.. the I8 is really a beautiful car.

  17. IcedAceApples says:

    I love u kris

  18. Di Genius says:

    Audio quality is poor compared to your intro tune. Take it up a notch bro. Love the vids

  19. Ryan Muniak says:

    Happy to see that you finally upgraded to a lav mic (looks like the same one that @thekingofrandom uses). Now just bring up the levels so we can hear you! Great content as always, Kris!

  20. irainkoolaid2 says:

    literally on max volume and cant hear u lol

  21. William Conner says:

    Hey chris, i subscribed to your video. I recently heading to a real estate flip training place here in Atlanta. I've started my own painting business. So I'm asking you, am i own the right track? Thanks

  22. André Mariano says:

    you only droped 4,5 % to buy the house? with bank financing? wish I could do that here, minimum by law is 20%.

  23. Kyle Trent says:

    Love your videos Kris! Is your SWAN account the same as emergency savings or are they two separate accounts?

  24. cnat01 says:

    Pls repeat the type of insurance we should get from bank? Great content, Chris.

  25. Basit Amjad says:

    What was the hourly charge for this house you booked for shooting this video?

Leave a Reply

Your email address will not be published. Required fields are marked *