The Truth About Wealth – Assets

The Truth About Wealth – Assets


our slogan is regular people building
wealth what is well so is the person driving a Ferrari and the highway
wealthy or perhaps like a youtuber with a stack of cash on their table maybe
maybe not it all depends on how they getting there
for me being wealthy means that I can concentrate on what makes me happy and
for me it’s spending time with my family or racing cars if my sister has a
birthday in another country I want to be able to fly in without thinking about
how much does it cost or how many vacation days I have left so for me
being well sick comes down to two parts part number one I need enough money
coming into my account and let’s call it cash flow to not only cover my
necessities and monthly bills but also to give me more life options the second
part to it is that I need time so I can’t be spending it all on getting that
cash flow so I need to get it it was little to no time involvement let’s call
it being passive add them together and Wells means passive cash flow where you
don’t have to worry about money you don’t trade time for it and you have
more options in life this video is about what does it take to get there and to be
truly wealthy keep watching let’s start with common sense it doesn’t matter if
we have two billion dollars so two thousand dollars in your bank account
you must spend less than what you make logically there are three ways to do it
earn more spend less or do both if you look on the right side to spend less
even if you’re the most dedicated person in the world was a great budgeting we’re
not a single dollar gets wasted there is a limit to how much you can save because
you still have to pay for your home your food insurance kids and other
necessities just to keep yourself alive so there is a
limit to it on the flip side for Lu canal on the left on earn more there is
no hard limit to how much you can earn so it makes sense common sense that if
you want to build wealth well it is important to save and to spend less than
you earn the bigger focus should be on earning more because potentially it’s
unlimited now Before we jump into earning more let’s talk about time we’ll
walk around this earth not knowing exactly how much time we have left and
that’s what makes every moment valuable you can earn money back that you lost
but it’s impossible no matter how rich you are to get the time back and we all
have the same 24 hours in the day that is why time is the most valuable
and precious resource that we all have so now let’s go back to learning more
how can we do that so let’s for example imagine I’m a frontline worker working
for Amazon being paid like a minimum wage closely and I’m being paid per hour
so my option number one is and the simple one is to work more either work
more at Amazon or moonlight or what’s called today Santa’s like for example
being an uber driver after I finished my Amazon work this is a valid way you’ll
earn more money but it’s very short term first of all your salary increase will
result in more taxes which you have zero to no control over it so your income
won’t grow proportionally to how much more you working right now
also there is only so many hours in the day at which I gotta sleep I gotta eat
hopefully see my family take care of the kids
so working higher percent is just all my time is out of a question it’s
impossible so again I’m trading time for money and the danger here is because I
have so little time because I worked so more I cut off
opportunity to create conditions where I can become wealthy for example by
getting an education and increasing my salary potential or starting a business
so now let’s look at the second way however more you can have a higher
salary let’s say I’m a the same Amazon worker and finally I got the promotion
with the highest salary maybe I need go see a tit or I went back to school got
some extra knowledge and got promoted so obviously this is superior way to simply
working more because you work the same hours but you get bigger cash flow but
if you think about it you’re still trading your time and if you had to go
back to school you had to trade even more time to create the highest salary
potential you still have very little control over your taxes and you’ll get
taxed more and your earning potential is somewhat limited no matter how much you
progress an Amazon all right so you can see that both of those options while
valid do not give us like what we really want a passive cash flow we’re like you
you don’t trade your time and let’s look at the core that I loved by Warren
Buffett if you don’t find a way to make money while you sleep you will work
until you die so obviously this is superior to both working more or any
higher salary getting money while you sleep how’d it like how do you do that
so here let’s introduce a concept called asset in economics an asset is a
resource controlled by an entity as a result of past events from which a
future economic benefits are expected to flow so let’s say I work enough years
for Amazon and now have knowledge on how the system works and like what does it
take to be successful I decided to quit Amazon and open my own FBA business
fulfilled by Amazon firstly I file in a territory where I have unlimited earning
potential is now in a driver’s seat there is no external
Asians that are controlling me not only that I have ability to optimize taxes if
I need to fly to China for example to find a supplier that’ll be a tax
write-off so I can invest in my business which is my asset and get a tax benefit
compared to when I was employee at Amazon there is no tax incentive to
invest an asset which is really my knowledge because the more I work the
more tax it gets with zero control over it now say I buy my business very good
I’m a good business person I create successful scalable process and I hire
people I documented my process and teach them finally I’m in the position where I
can step away from the business not in a daily grind sleep and still make money
IRA like let’s be real here like no no BS kind of stuff to get to the point in
your business where you can just step away and make money would take a lot of
time commitment up front you’ll have to experience a lot of stress like trust me
when I tell you there is not a lot of stress free days when you run a business
business is also inherently risky Amazon algorithms might change the supplier
might screw you up you might get sued you might lose it all so it’s a great
way but it’s not a perfect way so this leads me to the final in the best way it
is to invest in assets that make you money so for example as I was earning
money or was my successful Amazon store instead of putting it all into business
I started buying rental income properties and I found a great property
management company that eliminates all of the headaches and even without
calculating the appreciations on the home I get 12% cash flow each year I
also nurse I’d start buying some simple dividend ETFs from Vanguard and I get 5%
per year so if you look at this now with little to no involvement I get cash flow
it has unlimited earning potential and I can optimize my taxes through
either register account or business tax rider so without a doubt this is the
best way to get money while you sleep of course the big issue here is to get to
this assets you need to have resources first number one being cash like if all
I had thousand dollars and invested it I’m getting $50.00 each year it is great
but it’s obviously not enough to cover my bills and that’s why they say it
takes money to make money which become richer which leads me to the ultimate
truth about being rich it doesn’t matter how high your salary is to be truly
wealthy you have to have assets that make you money all without you
exchanging time for it depending on where you start getting resources to
acquire those assets might be very very hard it is not impossible though
especially if you have realistic plan and no matter how long it takes you
stick with it thank you for watching and if you subscribe to intelligence si I
think we can help you to be part of that plan and be on your way so please
subscribe

1 Comment

  1. Intelegency - Regular People Building Wealth says:

    02:00 Earn More and Spend Less
    02:39 Time is the most valuable Resource
    03:20 Work More
    04:21 Higher Salary
    06:03 Assets
    06:30 Start a business
    08:10 Invest

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