How to Manage Your Money like the Rich

How to Manage Your Money like the Rich


Here’s an interesting fact for you. Since the beginning of the year 2000, 6% of
the world’s population was using the internet but right now, almost 20 years later in the
present year of 2019, that number has climbed over 55%. Because of this, the way people do shopping
has been revolutionized since the introduction of e-commerce. Not only that, in this rise of the digital
age, there’s been a huge growth of new opportunities for new entrepreneurs crossing over from the
employee quadrant to run an online business and work independently for themselves. With the power of the internet, the ability
to create large income streams from never having to create a traditional Brick and Mortar
business is now truly possible and in fact not uncommon. We can see that there is a lot of money to
be made online such as with YouTube, Amazon, Affiliate Marketing, Social Media marketing,
and so on. Now… You can make extraordinary income from these
avenues, but SUPRISINGLY it’s not just about how much money you earn. What sets you apart the majority of the world
is what you do with that money that really matters especially if you’re brand new in
the business world. Tell me. If you received a large commission check that
you made from your business, would you immediately deposit it into your own personal bank account? Hm. Interesting. If you said yes, there’s a high chance you
would probably end up just like the rest of the 80% of the population that would have
to continuously work for money for the rest of their lives. That’s because there are 3 different kinds
of business strategies from each of the 80%, 15%, and upper 5 percent of the population. Let’s break it down for you. 80% of the population when they get older,
they’ll usually have to work to make money or become dependent upon the government or
their family. Next, there’s 15% of the population which
is considered the middle class. They live comfortable lives and usually end
up with a net worth of a million dollar. An then there’s the Upper 5% which their net
worth would have to be at about 5 Million dollars and more. Now that you have an overview of the 3 groups,
by the end of this, you will learn the differences of each of these groups and the best ideas
of how to manage money like the rich upper 5% using their business strategy. So… let’s start with the 80%
Let’s say Joe right here earned a commission check from his Marketing business and that
check is $5000. Like everybody, Joe is excited to receive
the commission check and he deposits it into his own personal bank account. Now this might seem normal for many of you
but the problem is if you run a business… that $5000 is untaxed and you don’t own
all of it. The biggest mistake average business owners
make is when they get a check, they start spending that money. In fact, the bigger the check, the more they
start spending. They’ll never think about debt reduction
which is a huge problem because they think how they’ll do it that later… Once you deposit into your own personal account,
it’s considered yours now so you’re already missing out the tax benefits and eventually
have to overpay more in taxes because your own Personal Bank Account is not an LLC,
S. Corp, limited partnership, or a corporation. Now let’s take a look how the 15% would
of handled that same commission check of $5000. They understand that government will be taking
their portion of the money. So… in this case we have Darren. He was smart enough to create an LLC for his
business so technically he doesn’t own the business as something personal so he’s eligible
to all the tax advantages. He gets the same check but now instead depositing
it into his own personal bank account, the check goes right into a business account and
the money automatically splits into 3 accounts. The check hits the business account and instantaneously
$1650 of the $5000 goes directly into Darren’s tax account. That’s 33% which will be untouched and saved
for later when the time comes to pay his taxes. Next – $1650 or less goes into his business
expense account. This is where he runs his business that has
expenses such as marketing, advertisement, cost of products, etc. As an entrepreneur, you’re going run a business,
in this account, you should start taking better write-offs so having a hired CPA will be beneficial. And finally about 34% of the money gets transferred
into the home account leaving $1700. Now simply doing this, gets you better organized
and prepared to manage your money without any hassles when it time to do your taxes
and the biggest advantage you’ll able to notice is you can have more savings in your
bank account by the end of the year because you’re were happy to be able pay off taxes
at a lower rate with great business write-offs. Now, let’s take a look what does the Upper
5% does it. Let’s say Susan gets the same commission
check of $5000. What happens? Actually, everything starts off the same way
as Darren. But now, we see the money gets split up even
more once it goes through a 3rd account that which is called the investment account. Here’s where things get really interesting. The investment account operates in a systematic
way where the wealthy can organize different accounts, each with their own special tasks. The money will get split up to go into home
expenses, retirement savings, and into an account just for entertainment. Within these accounts, you can see some of
them are basically assets which can grow over time as new checks comes in. The more the assets grow, the more passive
income pours in, which ultimately leads to bigger checks coming in through this cycle
which creates a snow ball effect over time. The powerful part about this is that the upper
5% takes advantage of hiring or outsourcing tasks through their business account. This becomes a write-off for their business
account, which becomes a win-win situation because it supplies more time for themselves
to focus on other important matters. For example, if I run an Amazon FBA business,
I could take my own time to create Okay photos for product OR I can hire a professional who
can take beautiful photos and whatever I paid that person I can document that as business
write-offs. That’s pretty smart. And now you see how you can manage money like the
upper 5% Thank you for watching. Be sure to subscribe for more stuff like
this. Besides that, Stay tuned!

74 Comments

  1. Mindprovement - Self Esteem & Influence Channel says:

    Every penny should be considered a pawn that can help you become financially free! 💰

  2. Inner Game says:

    NICE ONE! Animations are the best on Youtube. Nice work Chris, another great video bro 🙂

  3. Arturo Cabello says:

    Every single dollar must be spent wisely! Great to see that you're back! 🙂

  4. Michael Gessinger says:

    Awesome video bro!!

  5. Sead Bajrami says:

    Good video

  6. Cage edits says:

    Oh i sould have wathced this years ago if you had made it. Thank you so much for saving me now

  7. Michael Leonard says:

    Money is a tool, use it to build my peeps

  8. VisualFeelsProductions says:

    Oh my goodness❤🤗 love the animation and little dudes🤓 I like animating myself as well🎨 great money video!!

  9. Michael P. says:

    Hey Chronicle Living. You mean if i have a online business im supposed to open a business bank account and separate other accounts as well to trznsfer money to for other purposes? Can you break this down for me?

  10. Cage edits says:

    Best bussjness video i have EVER SEEN

  11. Muhammad Ali says:

    Amazing video, bro! 💯🔥

  12. Surplus Division says:

    Joe looks like Kearney Zzyzwicz on the Simpsons.

  13. NANGSTAGRAM TV says:

    Nice n simple!

    Good work bro

  14. Gradual Improvement says:

    rich people use leverage and buy assets.

  15. Almighty 1000 says:

    Great! Now please make a video about how to get that 5000 usd check every month?

  16. Shawn Moses says:

    I underdtood everything except all those bank accounts

  17. Thoros Thor says:

    Best simple advice and clearly explained and defined

  18. Chronicle Living says:

    Thanks for watching guys! For new video uploads, be sure to hit that 🔔 Bell Notification to get notified!

  19. Jimmy H Investing says:

    Great video.. new sub

  20. Ashley Mwanza says:

    Jkkk

  21. Ashley Mwanza says:

    L

  22. Rav Singh says:

    Great video, thanks for breaking that down.

  23. spenza100 says:

    upper 5% of population with 5 million dollars net worth? I don't think 5% of the population has over 5 million..

  24. Nanofication says:

    Solid gold video. Working on getting the 15% approach working, while experimenting/ gaining experience with the 5% approach.

  25. Jonathan Chiasson says:

    I don’t think this makes sense, a rich person does but use 33% or their money on investments XD. That is ludicrous. Invest 50% or more! Invest 80% to be in the 2%.

  26. 00rphb says:

    Don't put money in the bank, EVER.
    A perfect analogy is to imagine the bank as an acquaintance, one who dosn't care about us personally and who beyond that have a gambling addition and owns money to everyone.
    With this in mine ask yourself, would ye rather that he holds your money, or that ye holds it yourselves?

  27. CIO Zimbabwe says:

    Great video!

  28. J5 says:

    Nipsey hustle taught me this !

  29. Clem Joke says:

    Mortar. Brick and mortar.

  30. Jack Harper says:

    The picture on the right for 5% is misleading.

  31. Tom Purcell says:

    And that's why being taxed at source is better

  32. James Bower says:

    Kant's work on the transcendental aesthetic would prove this to not be the case with respect to the common deduction. Here we are dealing with the nature of sensibility. It is the means by which objects are given to us. Sensibility is the original relation of cognition to objects. … The pure intuitions are what the transcendental aesthetic is intended to describe.

  33. Pedro E Rocha says:

    Mortar, is Mortar

  34. Joshua roja says:

    I'm blessed that i see this video at my young age

  35. Myles Yee says:

    Your mic is pretty bad keep hearing shar0 noises when u talk

  36. Abdulhakeem Imran says:

    I learnt this from Tom Ferry's lecture. Thanks for this.

  37. webuser 2014 says:

    Actually you can live a kinda nice life if you have 1 million. There is no need to reach billions for a fullfilling life.

  38. Edzter says:

    "15% which is considered the middle class"

    you realise how sad that is right?

  39. anglekan says:

    It depends on what you mean by rich. For some being rich is paying for American sky high taxes and living in a fractured country with cronyism everywhere. For others it's LEAVING the USA for a better life without many of the government regulations and cronyism.

  40. Solowarrior1221 says:

    pro-tip: use the money you have to buy other things that will make you money (assets). if it works for the rich it can work for you.

  41. Gudmundur Rafn Geirdal Bragason says:

    Amazingly clear distinction between the poor, middle and rich. Thank you!

  42. subramanian karthik says:

    Just wondering where the commission Cheque comes from 😛

  43. philip john says:

    Underrated channel.

  44. Will Black says:

    These are great videos. Do you take outside work?

  45. Cleric775 says:

    That's one way of doing it.

  46. Miyuden says:

    I don't get payed by check. It runs directly into my bank account already fully taxed.

  47. Alex Contreras says:

    Dude you sound like blade angel he's another YouTuber that talks about cars

  48. K.dashbeats beats says:

    who can teach me to open a e-comerce bussiness

  49. Akimoto4u says:

    bla bla blu..

  50. A Tortora says:

    Nobody explained this better than you did. Thank you Sir.

  51. Personal Development Hacks says:

    🔥Excellent advice! Thanks for sharing! 💪

  52. alexander smith says:

    useful video <3

  53. z.0아이즈 브이 says:

    so am in the -100%

  54. X- Pusit says:

    Why you don't mention Alibaba?

  55. Aaron Allix says:

    The main thing people waste money on is cars. If you put the £5000 bonus into a business account and put the car through as an expense, you save yourself a lot in tax and still get the full benefit of having the car. Also, companies (in the uk anyway) pay tax on earnings at the end of the tax year, compared to income tax which you pay from your paycheque as soon as you get paid. So if you get paid into a business account, run everything you need through expenses, at the end of the year you should aim to spend up all of the money in the business account (renovations for buildings, equipment for the business) then you will avoid paying some if not all tax on the profits.
    It's not tax evasion, it's being smarter with your money. Why would you WANT to give the government 20% of your money? People really need educating further on taxes, you essentially get 20% more money/(equity in equipment) if you sort out your finances properly.

  56. Brandon Rice says:

    Good job

  57. Ricky Torres says:

    Super like!!! Thank you for this video. I created an LLC last month and I am in the process of placing my products in a steady location as we speak. I am happy you broke this down so I can study it with more precision, so I can get as many tax advantages as possible. Once again, thank you.

  58. Alex TK says:

    Neat I am that one of 5% except with low income at this following moment.

  59. Raghul Ravi says:

    Imiuupkpisl

  60. Junokaii says:

    Debt reduction is my #1 priority, because it costs more in the long run unless you get it over with as quick as possible.

  61. Growth Mindset says:

    As always, AMAZING content. Looking to grow my small YouTube channel of 25 subscribers. Your videos definitely keep me going!

  62. Mr. Dj says:

    Which video editor you use

  63. Rhonda Dickey says:

    Wow this has opened my eyes, even though I have nice chunk of money saved up, this is on another Level.

  64. DOP says:

    Great content, well done.
    what software do you used please?. And where can I learn how to edit like you?..thanks

  65. AK DHAWAL says:

    Nice video,plz upload more videos

  66. Dan Wruck says:

    Wait! You're saying the "80%" is the working class and/or poor? Only 15% is the "middle class"…that is astonishing! Thanks for the info

  67. Rodge D. Casipe says:

    Good.

  68. emmoore91 says:

    Subscribed!

  69. How to get rich from stocks says:

    Anyone can be rich, if you know how to invest and grow your wealth wisely. 🤑

  70. Srbin Rusija says:

    Middle class=1 million dollars. lol

  71. Cheryl Henninger says:

    Why do I feel like I've learned these lessons too late? Probably because I have. Sigh.

  72. KAYOMBO G says:

    CHRONICLE LIVING I see u far

  73. unknown G says:

    Thanks man

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