For the typical person earning a living means trading your time for money at a 9
to 5 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 7 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 dollars 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 get paid 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 hey it
looks like youtube thinks this next video is the one that will change your
financial life forever give it a watch and let's see if they're right