What if I told you that there's one secret that all rich people know but
won't share that has helped him a most ridiculous wealth would you want to know
what that one secret is well in this video I will share with you the one
secret the rich don't want you to know about money and if you're new to the
channel then hit the subscribe button below for more life-changing content
when I was young I often saw rich people driving around in their fancy cars and
when I compared them to the ones my parents drove it became clear that these
rich people knew something that my parents didn't from an early age I was
always curious as to what separated the rich and the poor which led me to
reading numerous books on the subject after a few years I felt as if I had
regista bout every book on earth relating to becoming wealthy and the key
traits that successful people have which has led me to making the video you are
now watching as a red book after book there was one factor that would come up
again and again and as I started my business career it became all too
evident as to how people become wealthy back when I was working as an analyst at
a management consulting firm I would see my CEO parking his expensive sports car
while I was envious of the car si drove I was actually more interested in how he
could have amassed the wealth to be able to buy such an expensive vehicle then
one day I was walking through the halls of my office when it hit me the CEO had
hundreds of employees working under him billing out thousands of dollars to our
clients every single day while he sat in his office and strategize new
opportunities for the business what I realized on that day was that the most
important thing every rich person knows about money is that the key to unlocking
wealth is through the use of leverage now let me unpack this concept further
so you can fully grasp just how powerful leverage can be like I said previously
since I can remember I have always been fascinated to learn how people become
successful and have studied the lives of hundreds of rich people from all
generations and backgrounds through this extensive research one glaring
observation became evident and that it was nearly impossible to become rich
working with your own two hands in earlier days this meant that an
assembly-line worker could never become rich producing a single person's output
in a day and in more modern context this means that the output you can produce at
your 9:00 to 5:00 job isn't likely to make you wealthy in
short those working eight-hour days could not produce enough output to
become rich but when I studied the rich I realized that they worked a little
different than the average worker the rich found ways to work thousands of
hours or more every day now you may be thinking to yourself but
there's only 24 hours in the day how can any single person work thousands of
hours in this short timeframe and you're right no single person can but hundreds
of people working together can in the book Rich Dad Poor Dad Robert Kiyosaki
outlines the three main management skills for success and they are the
management of cash flow management of systems and management of people and all
three relate to how leverage can make you rich you see when you manage cash
flow you can use that cash flow to hire people to work for you which also means
you are managing people as long as the money these people make for you
outweighs of salary then they are going to help you remain profitable let's use
an example to illustrate how leveraging people can make you more money if you
are the only employee in your business and work eight hours a day building your
clients $100 an hour then in eight hours you would generate $800 in revenue but
if you took the same situation and added in the fact that you have five employees
who each costs you $200 a day and does the same $800 that you do then all of a
sudden you are realizing $600 in profits per employee for an extra $3,000 in
revenue the management of systems in some respects is rather new as
advancements in technology have changed just how much leverage a business owner
can have for instance if you're selling products and need to send invoices to
clients you can set up software to automatically generate these documents
rather than paying someone to manually process them or creating them yourself
well you probably come and realize is that the path to creating real wealth is
to reverting systems and other people's time by leveraging other people's time
you were able to work hundreds or even thousands of hours a day
meaning more output and more revenue unfortunately most people will limit
their work output to eight hours a day or ten hours if they are extra motivated
but even with a little bit of extra effort exerted each and every day they
will never create the volume of output that is required to become rich but if
the math in creating more open and ultimately more revenue is so
obvious then why are there so many people who struggle to make enough money
to live while there are others who have more than enough money to live 50
lifetimes the truth is that rich people never talk about leverage and poor
people never learn about leverage I would be willing to bet that school
never taught you business principles that would help you run your own company
which means that never taught you just how powerful leverage can be and the
rich don't talk about leverage for one particular reason and this may sound a
little controversial but it's true do rich never talk about leverage
because it's a poor people that they leverage should make them rich each and
every day rich people are hiring workers who are willing to trade their time for
a little to no money which in turn creates significant wealth for their
bosses and if you think about it why would a millionaire share this powerful
secret with others if they did more and more people would stop working for a
paycheck and would start working for themselves meaning that the rich would
have less people who they get hired to make them money now I think it's
important to ask the question of whether or not it's bad that the rich lovers of
course time for their own financial gain I believe the answer is no and here's
why everyone is different which means that they have different aspirations for
their lives for some becoming rich is their ultimate life goal and leveraging
other people's time and knowledge is a great way to achieve this goal for
others raising a family may be a top priority meaning that they would rather
trade their time for a paycheck unfortunately there are many employees
who want to become rich and are perpetually frustrated with how little
money they make in their jobs they get upset that their salaries are so low but
as you can understand the more an employer pays an employee the less they
have for themselves this situation is why most employees think capitalism is
bad and that all employers are evil luckily you now know the one thing that
has allowed millions of people to become rich and it is up to you whether you
want to follow their example or not but let's say you do where do you start
first don't hate the rich this is very important because you can never become
what you hate money isn't evil and having it doesn't make you evil instead
of hating capitalism love it because it's a reason why the world is
progressing very fast with innovations and development now if you want to
become rich using leverage you need to understand
all the ways that leverage can be used so let's go through the three most
important methods so that you can maximize your output and returns we
already discussed the powerful averaging other people's time and if you're an
employee right now then your time is being leveraged to make someone else
rich so how do you start using other people's time to do the same start by
hiring a freelancer to take on work that you currently have this will allow you
to test drive the use of other people's time and we'll show you just how much
more you can get done when you have four hands working instead of just two I like
to hire freelancers off Fiverr and up work but any freelancing site will do
the next type of leverage is other people's money which in other words
means debt it's what you put in a liability section in your personal
balance sheet but why use that can't saving make you rich the only way saving
alone will make you wealthy is if you have a very good income very low
expenses and the tenacity and ability to save over a long period of time for
example if you're 25 and plan to save until age 65 and can manage to put away
six hundred and fifty dollars per month and achieve a 5% compound return after
tax on your money you'd have a retirement pot of almost a million
dollars well this is commendable it's certainly not clever and takes an
extraordinary amount of time and effort also while a million dollars may sound
like a lot it really isn't especially forty years from now in fact
with 3% inflation your $1,000,000 will be worth about $300,000 and produce an
annual income of about twenty one thousand five hundred dollars in today's
money not a very wealthy retirement if you want to become wealthy you need to
save aggressively and use other people's money to move you to your goals faster
other people's money lets you buy assets earlier at a faster rate and control a
larger amount than saving the whole amount these three characteristics of
financial leverage enable you to become wealthier faster for instance if you
save ten thousand dollars per year and borrowed at ninety percent after one
year you could buy an investment property that cost a hundred thousand
dollars if you waited until you saved a hundred thousand dollars then it would
take you ten years and the price of the property would likely be much much
higher this is why you often hear that it takes money to make money however it
doesn't need to be your money other people's money allows you to
fast-track your wealth creation program the final leverage method is other
people's experience one of the best resources our leverage is available to
you is the experiences of others it's an enormous waste of your time and
totally unnecessary to try and learn everything you need to know by trial and
error you can learn from the experiences knowledge and mistakes of others this is
the main reason I leverage the help of freelancers when taking on projects sure
I could spend years learning design programs or become a better writer but
if I can instead hire someone with this skill set and free up my own time to
focus on the things that I'm good at then it will ultimately have a better
end product as you progress on your own path to wealth never forget that while
leverage is a great tool it should only be employed if it is either increasing
or improving your output if buying other people's time is causing you more work
or if the output of an employee is not to your liking you have to understand
that the final product will not bring you closer to your financial goals
meaning that you must make adjustments in order to make leveraging work for you
thanks for watching if you want to go from the life you have to the life you
deserve then hit the subscribe button now