Listen, today's video might be my favorite video of the entire year. And
for coming out with a video every single day, I think that that says something
because what I'm going to be doing today is I'm going to be talking about something
that the wealthy do that the poor don't get. But you know what? The middle-class
don't get it either. Today, I'm going to share with you how the wealthy manage
their money. And if you make a couple of tweaks, it's going to change everything for
you.
Do you know where you learned about money? You learned about money from mom
and dad and the friends that you hung out with and the people's homes that you
went to the neighborhoods that you lived in. What life was like in your
neighborhood. And if you kind of grew up in my house as my sibling, you would have
learned that making money is hard, you got to put in insane hours, it's really
hard to be a business owner. You'd learn that you're going to have to acquire debt
to get ahead. But debt is something that you're going to fight over like crazy.
Those are some of the things that I learned about mone. Now, I don't know
about you but wealthy people learn something very different about money. And
for me to have become wealthy, I had to create an entirely different mindset. And
hands down, my first financial mentor certainly taught me things like money
magnifies who you are. Like money isn't good or bad, it's neutral. It's a tool, it
actually just magnifies your own belief. So, if you're a douche then more money
makes you a bigger douche. And you know, if you're a super kind person then more
money makes you more mother Teresa II, right? But more than that, it's what the
wealthy are actually doing with their money that we're talking about today. So,
there's actually a technical conversation as in money comes in, where
are you actually placing it? And today, I'm going to be giving you 3 models.
This is um... This first little bit is actually pretty well-known. If you look
at how the world's wealth is distributed as a whole. You have 5% of the
world who are living off of what's called generational wealth. So, these are
the wealthy. And this means the Wealth's already been created. And they don't have
to work for money. Money most definitely works for them. Then you have 15%
of society. And this is your middle class, right? Your middle class are your
hard-working business owners, executives, people that are doing more or less above
average. And they're also making certain choices with their money but they are
operators. They got to work to get paid. And then you have 80% of the rest of the
planet. And I'm just going to use the word poor. Meaning average or less than
average where they're also doing certain things with their money. But all 3 of
these people, when they get money in their
ecosystem they each do something different with it. And today, I'm going to
show you exactly what that is. Okay, so first of all, if we're talking
about the poor, normal average-working class below the middle-class level, these
are the individuals that when they get a check, which it's because they get a job,
they work for 2 weeks then they get paid and they get a single check. And
what they do with that check is they deposit it in their personal bank
account. And from there, they do everything. The money goes out for this,
the money goes out for this. It goes out for this. Money never comes in. It just
goes out for this, it goes out for this. So, they have a single source of income.
The money goes into a single place and this is where they live life and
they basically cut all their expenses, right? If you're doing this then there's
a tweak that you're going to need to make here because this is highly
problematic. What I want to show you which I think will be kind of a leveled
up revelation is what the middle class to do with their money. And if we're
talking about the middle class and those that are business owners, first of all,
when they have checks come in, emphasis on the "S". They don't have a single source
of income. They have other revenue sources. And when that money comes in, the
first thing that it does is it goes into a business bank account. And that money
doesn't flow into their personal. It flows into their business. Now, from there,
it's going to flow into their personal. But guess what? They also have taxes to pay
because they're a hyper productive member of society.
So, they've got a tax account. And then the last thing that they have is they
have their business expenses. So, this looks a little bit different than the
last scenario. The money comes in to a central source. Some of it goes to pay
for business expenses, some goes for taxes and some goes then to their
personal life. Just the fact that the middle-class have these different bank
accounts means that all of a sudden, the money starts getting cut up and used in
leveraged differently. Now, this in itself is pretty cool.
Now, check out what the wealthy are doing. The wealthy, they also have checks coming
in. But they have usually even more checks coming in. And just like before,
you've got your business account, business expenses. Your home account, your
tax account. But for the business, they're now building a war chest. Which means
they're thinking ahead. Just like my own personal bank account wants to have you
know, 3, 6, 9, 12 months worth of emergency funds. You do the same thing for your
business so that if the right opportunity comes along, you can snap
your fingers and boom, you can make it happen. But check out this. Now, they start
opening up their investment accounts. And investment accounts can lead to a number
of things. For example, real estate. Every month, that check comes in a percentage
comes right in all of it comes 100% here, a percentage goes to the tax account
whatever their brackets at. A percentage comes to here for the expenses. Then a
part goes to war chest a part goes to home account. And then boom! They're
active investment accounts. A portion of it right into real estate investing.
Producing financial freedom from real estate they might have it coming down
here and saving money in their sophisticated life insurance program. By
the way, these people don't put their money in a bank. You put your money into
whole life insurance policy and you treat it like a bank. Not for the death
benefit. The living benefit gives you 5% dividends on average, tax-free growth,
your money becomes untouchable. So, they're not... By the way, I help people get
that started. That's in a link below here. But you got your life insurance then you
have your alternative investments like, "Oh, I'm going to invest in this, I'm
going to invest in that. I'm going to put 25,000 here. I'm going to put
100,000 here." And they're diversifying and getting themselves out
there. And they might have their own 501 3 C their own charitable system or
different companies that they're actually basically giving money to for
nonprofits. This whole system, I want you to ask yourself. When your money comes in,
do you know how to slice it up? Because I'm telling you what the wealthy are
doing. The wealthy have every dollar come in and they know exactly all the places
where it goes. They disperse it. And you're asking yourself, "Well, Kris. When
your check to check, you can't do that." Exactly. We stopped being checked to check. Start
paying yourself. Grow some ambition and actually put yourself out there. Start
making something happen. Get a side hustle, a side gig. Buy a piece
of real estate. Make 100 grand like do something that gets checks coming in
and then learn how to maneuver that money in a manner. Because I'm telling
you right now that if you cut up that money, it's like, "Whoah! I got a little bit
of money sitting there for my alternative investments. Whoa! I got some
money sitting over here for my next real estate deal. Whoa!"
And all the sudden, guess what? If you want to become the wealthy, you have to
act like the wealthy and this is what the wealthy do with their money. Hey,
thanks so much for watching today's video. I hope it was super useful for you.
Listen, if you're like, "Kris, where do I get started? I need to slam an extra
hundred G's in my bank account." Then I would say get started with real estate
out of my free book here. I printed a bunch of extra copies and while supplies
last, I'm happy to give you a copy of it. All you got to do is click the link
below. This will share with you my simple system for buying a home that will pay
you 500 extra dollars a month. But 5 grand immediately in your bank. And 50
to 100,000 dollars in your bank account from sales in the next
3 to 7 years. So, hopefully that's a useful gift for you. Other than that,
please make sure that you are subscriber. If you like this, share it with somebody.
And we'll see you on tomorrow's video.