For the typical person earning a living means trading your time for money
at a nine to five job while this can be a reliable way of earning money the
reality is that it has a very slim chance of
making you rich you see the rich earn their income in a
variety of different ways and when combined
their income streams allow them to exponentially increase their net worth
every single year in ways that a sole source of income like a 9 to 5 job
could never offer in this video i will share with you
seven ways anyone can make money like the rich and if you're new to the
channel then hit the subscribe button below for
more life-changing content method number one leveraging other
people's outputs the rich know that to build wealth you
must generate value and this value often comes in the form of outputs for
car companies it's the cars and trucks they sell and for blogs
it's the articles they produce however if you are one person
how many cars or articles can you produce the answer
is not as many as you could if you had more hands which is why the rich
leverage other people's efforts to make the money
to illustrate just how powerful the leveraging of
other people's efforts can be let me share with you an example let's
say you are the only employee in your business
and you bill your clients a hundred dollars an hour for your time
if you build all eight hours of a normal work day you would generate 800
in revenue now if you took the same situation and added in the fact that you
have five employees who each cost you two hundred dollars a
day and bill the same eight hundred dollars that you do then
all of a sudden you're realizing six hundred dollars in profits per
employee for an extra three thousand dollars in revenue
these earnings only multiply as you hire more and more people and this is exactly
how the rich earn exponentially more than the middle and
lower classes in fact whether you've realized it
before or not this is exactly how the most
well-known businesses you interact with operate for instance
amazon employs more than 600 000 people and microsoft over a hundred thousand
this amounts to millions of hours being worked every single day by these
organizations and it's no coincidence that the
founders of these companies jeff bezos and bill gates
are two of the world's richest people method number two
harness other people's expertise let's face it no single person
is an expert in all topics and domains which is why if you want to make money
like the rich you must begin to accumulate knowledge
from different sources rich dad poor dad author robert kiyosaki
once said that if you want to be rich then you must hire those who are smarter
than you and this can come in the form of
consultants coaches mentors or even friends and family where people
go wrong in their pursuit of wealth is by trying to be totally self-reliant
and this is typically due to two main reasons the first
is that they think they know everything and don't need to rely on others to see
progress in their money-making efforts which is never the case
second they try and reduce their costs as much as possible
and avoid paying experts who could exponentially increase their income
if they were to be consulted by trying to do everything yourself
you are slowing down your progress and this not only means becoming
perpetually frustrated but it also means leaving a ton of money on the table that
you could acquire if you were to get the expertise you
needed to succeed something that many people don't realize
is that the rich gather to exchange ideas knowledge and
strategies in the form of mastermind groups they surround
themselves with other like-minded people to learn
and use each other's knowledge and this continual access to greater information
is what drives forward their financial success
method number three using other people's money
while you would think that the rich would use the large sums of money they
have to run their businesses or purchase properties
they will admit that it's often better to use other people's money
than to use their own now using other people's money may sound like a foreign
concept to you and something you've never done however
if you have any debt whatsoever then you have leveraged other people's
money in some way for instance when it comes to buying a new car
most people use a car loan to fund their purchase and that money comes from the
bank you see the bank uses money that other
people have deposited to give out loans to people who are
looking to buy a car and charge them interest to do so
now the rich do the exact same thing however the key difference
is what they are using this money for generally the poor use borrowed money to
buy consumable goods or depreciable assets
however the rich use this money to buy or invest in assets that will appreciate
over time an example of this would be taking out a
mortgage on a rental property in order to create a new rental income
stream let's say you wanted to buy a five hundred thousand dollar home
that you could rent out for twenty five hundred dollars a month to avoid private
mortgage insurance you put down a twenty percent down
payment and finance the other four hundred thousand
at a three percent interest rate you've calculated that
all expenses combined on the property was two thousand dollars a month
and that you were profiting five hundred dollars not only would you be increasing
your cash position every month but you would also realize the benefits
of housing appreciation and having a tenant pay down your
mortgage allowing you to slowly build equity in the home
now you may be thinking to yourself if this rich person has a ton of money
why would they take on a mortgage when they could pay outright with cash
the reality is that most rich individuals keep the majority of their
money in appreciable assets which yield them handsome returns and if
they were to withdraw money from these assets to finance the cost of a house
for example they would be lowering their overall
returns and slowing down their wealth accumulation if these
returns were greater than the three percent interest they are paying
this concept is called opportunity cost and it's the cost of choosing one
alternative over another which in this case is investing into the
property over investing in higher yielding assets
like stocks or private businesses and this method of obtaining more financial
leverage is quite popular amongst big businesses as well many
businesses use other people's money whether from the
bank or private lenders to expand their businesses or invest in
other lucrative opportunities amazon for example uses debt to create
their many fulfillment centers which gave them an
edge over their competitors by providing faster shipping and an overall better
user experience with these centers they were able to
dominate the market which means more profits and a greater return on their
money in essence the rich know that money is a
tool and that means that when the benefits outweigh the costs
leveraging other people's money is a smart way of doing business
method number four buying more time you hear it all the time that time is our
most valuable resource and that we only have 24 hours in the
day however when done right you can gain access to all the hours you
could ever need you see the rich know that time is a
limiting factor in their ability to succeed
and so often they leverage the time of others to buy back time that they can
use to be productive let's compare how the rich and the poor
use their time for the poor they aim to save as much money as possible
so they do everything themselves even if they could hire others to do it for them
this is because they don't know the value of their time and that time freed
up could mean making more money and ultimately growing their wealth
well the rich understand this concept very well and use it to their advantage
as much as possible let's use the example of a high profile
public speaker this highly regarded public speaker can
put on a day's seminar and earn themselves 50 000 does it make
sense for them to instead use this time to perform
administrative tasks like responding to customer emails or processing invoices
not at all which is why the rich often outsource their low value activities so
that they can spend the bulk of their time
on areas that yield them the highest levels of return and when i say
highest levels of return i don't mean only financially
freeing up this time can also be used to read more books or spend more time with
their family in essence if you were willing to spend
some money you can gain access to all the time you could possibly need
method number five tapping into your network something many
people don't talk about is leveraging your network now this
could be due to the fact that most people
undervalue the power of building strong connections
with those around them but you know what they say your network
is your net worth the reality is that having strong relationships can allow
you to tap into resources that could be hard to get on your own
for example let's say that you want to pitch an idea for an
app you built however you have absolutely no connections
in silicon valley that could possibly invest in your business and help you
grow well what if you happen to have built up
a strong network chances are you would know someone who
could set up a meeting with some tech executives
or at least offer you advice on how to gain the attention of this crowd
similar to harnessing other people's expertise having a strong network
allows you to take advantage of resources that would otherwise be
difficult to access if you hadn't have built relationships with other connected
people now being friends with someone does not
entitle you to the resources but if you ever need someone else's
resources you must create a win-win proposal and offer as much if not more
value to them than you are hoping to receive method
number six brainstorming with others researchers
say that the average person has 60 000 to 80 000 thoughts and ideas per day and
while many of these are repetitive others can be brand new ideas that can
have a massive impact on your life as i talked about earlier in this video
the rich form mastermind groups to coordinate their resources
and expertise and one way they come up with innovative ways to improve not only
their business but their lives in general is to share
ideas this can be in the form of in-person
discussions or video conference calls when you get numerous smart and driven
people in a room the opportunity to come up with
impactful ideas arise this is why the largest companies in the
world hire the smartest minds and have them work in teams in order to
develop groundbreaking vaccines or innovative new pieces of technology
however the poor tend to work on their own and
shy away from working with others due to a fear of having their ideas
stolen what they don't realize is that an idea means nothing without execution
but sadly these individuals rarely follow through
which contributes to the financial struggles they often face
method number seven automating and innovating
as i've already mentioned the rich are micromanagers when it comes to their
time hiring others to assist them in areas
that they perceive to be of lower value however in their efforts to unlock more
time they don't stop there the rich also harness the power of
technology and automate many of their business and personal activities
for instance they may use robo advisors to handle their investing needs
or set up automated bill payments to reduce their time spent
processing their routine expenditures all of this time saved means more
opportunities to make money which is the only way you can aspire to live your
dream rich lifestyle thanks for watching if
you want to go from the life you have to the life you deserve
then hit the subscribe button now