What's up my friend. Kris Krohn here and today i'm talking about 4 things that
wealthy people do with their money. When I was in college young, dumb and poor, I
quickly realized that people with money were doing things very different than
people that didn't have money. And I wanted to know what the wealthy people
were doing because the wealthy people had things that I didn't have. So, one of
the things that I started doing was finding mentors. I started finding people
that had means and abilities that I didn't. I was looking for Mentors and I
want to share with you today what one of my billionaire mentors has taught with
me. Check this out. What normal people do
when they get money is they pay their bills, right? I mean we treat our
phone payment bill and our rent or maybe our house mortgage or a car
payment. These are the things that we go to jobs for. But listen, if you're going
to a job to get money just to pay your bills so that you can sustain life,
you're never going to get ahead, you're never going to get where you want to go. So
you can't just focus on bills. This is one of the four things that of course
wealthy people will do. But there's something more important that the
wealthy people do. This is mentioned in a book famous book Richest Man in Babylon.
It's called, "Pay your self first." So even before you actually pay bills, you've got
to pay yourself because if you don't then all your money will what? All your
money is going to go to bills. Now, think about that for a moment. If all you're
doing is putting your money at bills then you're never going to be anything
other than the person with the job paying bills and that's not going to get
you in life where you want to go. Now, the wealthy if they pay themselves first and
they're not using that money for bills. What are they using it for? I'm going to
share with you 2 things. If this is number 1 and this is number 2 then
paying yourself first, the wealthy are doing two very different things. Number
1 is they're putting money in savings. And I want to share with you exactly
what savings means because it's not just money in a Sleep Well At Night account.
It's actually a form of investing for them. But the second thing that they're
doing is they are investing their money. Which means they're putting in their
money a different bucket. Now, I retired at the
age of 26 because of what I'm about to share with you right now. Because I was
the person just managing bills and then I said, "Oh, don't just put you know, pay
bills." Number 3, put money in savings. But the wealthy are paying themselves
first and then they're putting money into their investments. And at the end of
this video, I'm going to share with you probably the most important thing I put
my money in that I've learned from wealthy. I mean, let's let's not kid
ourselves. The world's wealthy have created that number one first and
foremost through real estate investing and there are reasons why. So, instead of
just paying your bills, if you're going to pay yourself first, how much do you
allocate to savings? How much you allocate to investing? That's up to you. I
mean, ultimately, you need to get 3/6 months. Eventually a year's worth of
savings in the bank account to take care of yourself. But one of the things that
the wealthy people are doing here is they're doing what's called "BOLI", Bank
Owned Life Insurance. There's a specific type of life insurance policy where you
can dump your money in and it's sits in almost like a savings account. And the
savings account is producing on average 6+ percent a year. Now, when you
drop money in your bank, what are you getting on it? You're probably getting a
quarter of a percent. Maybe a half a percent. If you put it in a CD, maybe they
give you a whole percent. But what's the bank doing? The bank is taking your money
and they're leveraging it, they're investing it. And so, through my, through
my whole life, early cash out life insurance policies
all dumped money in form I Sleep Well at Night account. And I do that so that I've
got my coffers filled with money that if I lost my job or if this happened or if
I needed money real fast I could actually get it. But what am I actually
investing in? Ray Dalio who is a billionaire who has created... I
don't know how many billionaires he's created. But I do know that he has
returned like tens of billions of dollars to his investors over the years.
He is a professional investor. And one of the things that he says is that, "If you
can diversify your assets into 15 separate asset classes with asymmetrical
risk that that will eliminate 80% of your risk. Not investing is
the riskiest thing that you can do. Not investing is guaranteed to get you where
you don't want to actually be in life." You have to take a risk to get where you
want to go. Because check this out. If all I'm doing is
putting money towards bills and I'm putting my money towards savings just
those two things, guess what? 40 years from now all of my
bills are still probably covered, my savings is built up to a little. But
think about it, if you're like the average American who spends
$44,000 a year and you want to retire for the next 20 years,
then you're going to need a million dollars or 44 grand times 20. 20 years. And you
can't save a million dollars with the system. You have to grow a million
dollars and that happens through investing. Now, I did want to share as a
bonus today the fifth thing that I put money in that I think is the smartest
and wisest. And that is my real estate. The reason why is this: Imagine a
scenario real quick. I just want to show you this. Imagine a scenario where like
my very first house. I bought a property that had a value of a $150,000.
I purchased it for a $110,000. Now, the
difference between 150 and 110 is $40,000. We would call that equity. At the
time was making less than 20 grand a year.
So, $20,000, that was... That... If that's what I made in a year getting 40,000 and
equity on paper, I was worth twice as much as I could earn in two years
working full-time. But not only that. This house, when I actually moved out of it
and rented it out, I was earning a $550 a month cash
flow. So, not only did my net worth go up but I was getting paid 550 a month.
Couple years later, I sold this home. I made $65,000. That
$65,000, do you know how much money I put in to get that
65 grand back? I put in $5,000. I put in 5 grand and
I got back 65,000. I was that 13 fold return on my money. How did
I do that? Well friends, that's what real estate does. It enables you to act. So
when you look at what the wealthy are doing today, yes they pay their bills, yes
they put money in savings. But what they're really doing is they're
investing and then you have to ask where are they investing and where are they
putting that money? Friends if you want to know how we retired at the age of 26,
that is something I can show you how do. Subscribe to this channel and I'm
going to walk you through in all of my videos, all the different ways that I
make that happen. What's allowed me to travel around the world. Drive just about
any car that I want. Right now, I'm in the market looking for the next car that...
That I want to drive that really suits me. And I just feel really blessed
because I can pretty much afford anything that I want right now in my
life. And it's because of the real estate investing that has made it. So make
sure you are a subscriber because I'll share with you exactly how I've done it
and exactly how you can do it. And for those of you that say, "Hey Kris, I don't
want to waste any more in my life. I want to move a lot faster. How can I do that?"
What I want you to do is I want you to click the link in the description below.
When you go there and click on that, I'm going to give you access to my free game
plan report that will show you how I retired in four and a half years. And how
you can too. And it doesn't matter whether you've got money or like me you're
starting totally broke. It'll actually show you what the wealthy are doing and
what I did to create the lifestyle of my dreams and how you can too.