So you've heard this book. The richest man in Babylon. And if you haven't, today
what I'm going to do is I'm going to be sharing with you the 5 laws of gold
that George Claisen talks about in this book. Now, this book is important to me
because like I said I got my hands on it when I was really young and
impressionable. I was 22 years, old newly married and trying to figure out, "Oh my
gosh, how do I build wealth rapidly. And before I share with you the 5 laws,
here's what I want you to understand. This cool, parable set in Babylon is all
about these three young kids that grew up together and then two as adults
struggled financially. One was an artist and one was of something else and then
one of their friends went on to become really wealthy. Although he started just
as dirt poor and later in life his friends came to him and said how did you
do it? And he said, "By following these 5 rules of gold."
So the first law is a part of what you earned, you get to keep.
Now, that sounds bizarre for some of us today. So for example, if I count out and
earn for myself 10 units of money. 1, 2,3,4,5,6,7,8,9,
10. This money here represents me trading my
time for dollars. Will you ever get rich
trading your time for dollars? Never. And yet, if you spend 100% of what you make
then all of this is gone and then the next time you work, you got to count out
1,2,3,4,5,6,7,8,9,10. And then if I spend a 100%
so like literally my existence all of my time is being traded to like
work for there's nothing left over. The first law
of gold essentially says is that you have to pay yourself. You have to keep a
part of what you earn. So if we come back to that first tranche, I'd make this
money and he says in the least, you have to find a way to save 1/10 of what you
make. if you want to spend this, you go spend it. But this has to become set
aside for law number 2. The second law essentially states that you have to
invest your money. So this money that you keep apart and then the next time you
earn a unit of ten, you keep 10% right and you allow this to accumulate
and this money the purpose of it is to be invested. And investment means that
you send it to work and then it's got to produce something for you because now
I'm trading my time for hours at the same time I'm sending my money to work
and I need it to give me something back. So that, just imagine for a moment that
if I send this money to work this week and it produces this $50 bill and I
spend my time and I work and I get to keep that I now have the money I paid
myself plus I have the interest from my investment and this is now a little
more than I had before which I get to what? I get to reinvest it and over time
this 10% that you keep putting in real estate, business, investments it starts
accumulating. It's like for example, in my world of real estate let me show you
what this looks like. When I invest in real estate, let's say I'm going to have
1,2,3,4,5, I've got 10 units here. If I am earning 30% a year on
the money then I get to keep 3 of these and then I get to reinvest them.
And then I get this big batch again and I get to take 3 of these and I get
to reinvest them. You are putting your time in in trade for money. You need to
expect your investments to come back and give you money back. The third law of
gold is that you need to seek first advice. Which means that now that you
have this money and you're ready to invest it, what should you be doing with
this money? Seeking counsel from people that do this all day long versus the
amateurs is I think what makes the difference between tremendous success
and no success at all. Like for example, let's just say for a moment that you
decided to get my book for free. That's a smart move because leaders are readers.
They're developing their minds, they're developing themselves, reading this book
will elevate your knowledge of real estate substantially because it's all
based on the best way of making money in real estate. But if you read this book
and then implement it, does reading a book make you an expert at something? It
actually doesn't. Does reading a book mean that mean that you have all this
experience and track record? No, you don't have those things either. Ideally, you
would want to take knowledge from a book and pair it up with a mentor and then
you would be getting that wives counsel for someone. So that now when it's time
to invest your money, you're actually ensuring that hey I understand the
principle of what we're doing. But I also have someone to double check my work
with. I also have an expert that's made millions of dollars that can make sure
that executing and doing this the right way. So seek wise counsel. Okay the fourth
law, I just got to read it here because it's this old world Babylonian. It says,
"Gold for the fourth law of gold. It says Gold slip it away from one who invests
in the unfamiliar or those not skilled in its keep." So like think about that for
a little bit. You have this money. You're ready to
invest it and you either go out and put in things that you don't understand
or you put it with people that are not the best at their game. They're not the
professionals. It's not really what they have a track record on having done
professionally. This law essentially says you work so hard so that you can put it
out there invest it and you're either going to trust that money in yourself with
no experience or someone else with little experience. This is no. You want
to be playing with the best smartest and brightest people that are out there. The
fifth law is stated really well. It says, "Gold flees from the man who imposes
impossible earnings." Too much stress, essentially on too little money. I do
meet some people that get old enough where they feel like they've lost time
and they're behind the 8-ball. And so what it does is they start making really
stupid choices. They put massive stress on the money and ask it to do things
that are not realistic for it. Like for example, an extreme case would be, "I need
you to double every week." Okay, guess what? You can find Ponzi schemes out there
that can make that promise and might even be able to fulfill on it
for a handful of weeks before the thing implodes. In other words, there's a sucker
born every single day and if you're looking for the idiotic, you're going to
find it. With money, you need to be reasonable with it. You need to take care
of it. It needs to be nurtured. If you're saying, "Well I need a higher ROI then you
need to be wise in that allocation to make sure that you're mitigating every
risk that you possibly can. These 5 rules had such an impact on
me as a 22 year old that by the time I was 26, I became financially free and I'm
really thankful for that book that George Claisen wrote. I think it's
absolutely a worthy read and I would recommend that if you get a chance to
get your hands on it that you do read it. In addition, for
those of you that are saying, "Wow Kris, before I can execute, I need to increase
my knowledge." Did you know that Warren Buffett reads 500 pages a day. Bill Gates
reads 50 books a year. Mark Cuban spends 3 hours in personal
study. These people who have gone on to do incredible things what they do is
they seek knowledge from people that have expertise. Now in my world of
expertise, I done a billion dollars worth of real
estate, I've exceeded my 10,000 hours of mastery many times over. I've done 4,000
deals. And this book is masterfully written with a ghostwriter
friend of mine who assisted me with it so that I could communicate properly our
track record and why we've been winning so much and this book is a gift from me
to you. But also comes with the consultation. Some of you might be saying,
"Hey, I would actually like some hands-on help. I'd like a coach, I'd like someone
at my side and talk to my team about that and they can share with you exactly
what that looks like. Thanks for watching. Make sure that you definitely subscribe
and we'll see you on tomorrow's video.