Hey Carl, I’m gonna teach you how to be
rich using what I learned from the book Rich Dad Poor Dad! Everything we own either helps us become richer,
or makes us poorer. Something that makes us richer is called an asset. Whereas something
that makes us poorer is a liability. The formula to getting rich is having as many
assets, and as little liabilities as possible. I know, it sounds simple, but the most important
concepts are often simple, so don’t take it lightly. Once you learn how to make a dollar,
becoming a billionaire just means doing the same thing a billion times. You’re probably thinking, if I make 10 dollars
an hour, that means I have to work 100 million hours to be a billionaire. When you get paid
for the amount of TIME you work, that is called active income. So if you are thinking in terms
of active income, you’re probably right, you’ll die before you even come close to
a billion, unless you’re in the top 1% of your field, like hollywood celebrities or
pro athletes. But there is another type of income, called passive income, that makes
money for you while you sleep. Before I get into what passive income is,
let’s go back to assets and liabilities. So let’s say a house.. is it an asset or
liability? It depends, if you live in that house and you’re losing money every month
from bills and mortgage payments, then it is a liability. If on the other hand you rent
it out, and you receive more money than what you have to pay to KEEP the house, then it
is an asset! One of my buddies pays $1000 a month for his
condo unit, which includes utilities and everything, so $1000 in total. He rents it out half of
his place for $1200 (don’t ask me how he does it), so not only does he live there for
free, he actually makes $200 every month. That makes his condo unit an asset. The $200
he makes is passive income because he doesn’t have to actively spend his time in order to
make that money. Once you can make passive income, all you
have to do is repeat what you’re doing. Since passive income isn’t proportional
to your time, you can make as much money as you want per hour! Imagine if my buddy rents 9 more condo units.
If he makes $200 each month from each of those, he’ll make $2000 a month. At that point,
his business model will be a bit more complicated, sice he’ll probably have to hire a few people
to do jobs like cleaning, finding people to rent to, and taking monthly payments. So let’s
say it costs $1000 a month to hire people to do those things. He’ll still be making
$1000 a month from doing nothing. If you eventually expand to over a thousand
houses, you’ll have to hire more people. Perhaps you’ll hire a cleaning manager for
every 10 cleaners, and a senior manager for every 10 managers. That’s essentially how
businesses operate, you have a CEO at the top, with multiple-level managers, all the
way down to each individual worker. Learning how to keep your money, is just as
important, if not more, than learning how to make money. I go more in depth on keeping
your liabilities low in my article. I wanted to keep this video short so you won’t bore
to death, if you’re interested, click the thing at the top. There’s also a great book called “What
I Learned Losing a Million Dollars”, which teaches you how to keep your money. It’s
harder than you think, trust me. And finally, the BEST way to learn how to
make lots of money is by learning from people who HAVE lots of money. And there is no one
better than Sam Walton, the FOUNDER of Wal-Mart, the Richest Man ever in America. He wrote
a book about his life before Walmart and the challenges he faced in his businesses. You
can check it out here, but I do recommend reading the book yourself, it’s not the
typical boring autobiography. It’s actually one of the most interesting and valuable books
I’ve ever read. I hope you enjoyed this video, don’t forget
to subscribe to see videos every Sunday.

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