(pop intro music)
- Poor people focus on saving
and rich people focus on investing.
You know what, don't drink that
Starbucks coffee in the morning.
Try to save a few dollars here and there.
Don't fly first class, fly economy.
Always try to save a few dollars.
Well, here's the thing, a penny saved
is still a fucking penny.
You're not gonna get rich by trying to save a few bucks.
You don't have a saving problem,
you have an income problem.
You need to earn a lot more money so you could invest.
You don't have a lot of cash coming in
and you want to have 2,000, 3,000, 5,000
a month in positive cash flow.
You need to acquire quite a substantial amount
of real estate in order to do that.
Versus a business, to make three, four, five,
10,000, 20,000, it's much much easier.
So my recommendation, and it's just my philosophy,
and probably a lot of people would disagree with me,
is you build your business first.
And when your business throws off so much cash
and you have reinvest a lot of profits into your business
to grow, and it's now throwing off more cash,
then you take that money, that extra cash,
and then you can put into real estate.
Before you go, what I recommend is this.
Don't wait to buy real estate.
Buy real estate and wait.
So when is it the best time to buy real estate?
It's when you have so much money.
When you have so much cash coming in from your business.
Take that money, put that into real estate.
Because long term, if you buy right,
you will become very very very very wealthy.
I have a simple rule.
100, ten, three, one.
It means to look at 100 deals, 100 potential investments,
you might break it down into 10.
From that 10, you will narrow down to three
that has got possibility.
And then you might do one.
So, for every day, that every investment comes
across my table, I turn down 99.9% of them.
I look at hundreds and hundreds
and hundreds of investments.
And I do very selectively.
Very selective, just a couple.
Do you just, anything that looks,
that comes across the table,
you see online, oh that sounds pretty good!
Or, if you're gonna buy a stock,
you fucking look at two stocks and jump into one.
Or you buy a piece of property.
Hey, that looks pretty good!
Hey, I look at three properties and you jump into one.
Again, you're not doing your research.
Always remember, investigate before you invest.
You've got to get to the first piece first.
Now, here's what's very very interesting.
I know a lot of people who do very well,
they don't even have a scalable business.
You can be very wealthy with a high income skills
and you make your money.
And you put in high return investments.
You could do very very well.
I don't believe, I truly don't believe,
everybody should have a scalable business.
It's not for everyone.
Not everyone is cut out for that.
And you don't have to be that to do very well.
Like, a friend of mine who is a photographer.
Just a photographer.
In Vancouver, very high end, he takes photos
for Jim Pattison's.
It's a whole team.
He charges a lot of money, makes six figure income a year.
And he started investing in real estate 20,
20 some odd years ago.
Today he has a portfolio of about 250 units.
It's worth about 20, $25 million.
High income skills.
Put money aside.
Invest longterm.
20, 30 years, he's got a huge portfolio.
First, you gotta know what type investor you are.
Are you more for growth?
Are you more for capital gains?
Are you more for security, you want dividends?
All that makes a difference.
Okay, and so I don't like stocks, personally.
So, I'm not a stock guy.
I'm a real estate guy.
But some people do.
My friends, they do very well with stocks.
Good for them.
It's not something I like.
I don't have control over it.
I don't like the fact that I put in the money,
I can't call the CEO and say,
Hey, I don't like the way you're spending
about this kind of expense.
Right, I can't control that.
For most people, that's good.
I like control, when it comes to investing.
I like control in terms of the finance.
I like control in terms of decision.
I like businesses.
I put money in businesses because I have a say.
I can dictate, I can have some form of control
of where the business could go.
I like real estate because I have control over tax.
I have control over the cash flow.
I have control over the appreciation.
A lot of different things, right?
I can look at these things.
It's slower,
it is more stable, so it's up to,
there's so many other factors.
So, if you're making less than $50,000 a year,
save what percent?
What percent?
10%.
If you're making $50,000 or more,
but less than 200K, save %15.
If doing 200K or more,
but less than half a million, save 25%.
If you're doing half a million or more,
but less than two million, save 35%.
If you're doing two million or more,
but less than five million, save %40.
If you're making five million or more,
you should be saving at least 50%.
The rest, you can spend whatever you want.
Blow it however you want.
Reward yourself.
That's okay.
But you need to increase your earning ability.
And that's a combination of your scalable business
as well as your high income skills.