Hi I'm Jimmy in this video
I'm going to walk through.
What Rich People tend to do
differently that helps them get
rich and then stay rich.
And what we can do to help ourselves
get rich and ultimately stay
that way.
And if you like what you see please
hit the thumbs up. Hit the subscribe
button.
OK so how are we defining
rich and how do we ultimately get
there. Well I'm defining being rich
is having enough income and capital
to support each of our own
lifestyles without having to keep
a typical 9 to 5 job.
OK. Simple enough so
knowing how to get rich involves a
few key things.
But for most of us
changing the way we think about
making money is likely to be
the trickiest part of this whole
thing. So what if you look at the
process of building wealth like
this. There are two things
that we can spend our money on
assets and liabilities.
Everything on the liability side
are those expenses that
don't generate any revenue for
us. So we need to buy food
or clothes or a car
or maybe a new iPhone things
along those lines.
Now some would argue that a car
my blog on the asset side.
But unless we're renting that out to
somebody and that is bringing in
revenue for us we're going to keep
it as a liability on the expense
side. Then on the asset side.
Well this is all the things that
helps us build our wealth.
So it could be buying stocks or
bonds or ETF
or real estate anything along those
lines.
So the key and this is the most
important part of all of this for us
to do and that is we
need to figure out how to spend less
money over there and more money
over here.
OK. So here's a quick scenario.
Let's imagine that we're one of
those few lucky people
that had our parents leave us a
trust fund.
And every year that trust fund kicks
out fifty thousand dollars a year
towards.
So we don't have to work
are we rich.
Maybe. I guess it depends on where
we live and how much money we need
to survive on an annual basis.
But what if that trust fund were to
pay us. Let's say one hundred
thousand dollars or two hundred
thousand dollars or million dollars
here or rich.
Now I'm guessing one of those
numbers would likely get us to feel
pretty rich at least from a
financial standpoint especially
since we don't have to work big
since our trust fund is already
established.
Now in our example our parents
created the trust fund for us.
But what if we wanted to create our
own version of our own
trust fund that could one day fund
our own lifestyles.
Maybe we could leave it to our kids.
Well that's what this is.
This is our own version of a trust
fund. Now I just want to point out
that I think it's important that we
notice that I didn't say imagine
we had a million dollars in our bank
account or two million or tenderly
instead of focusing on how
we can set ourselves up to
generate plenty of income in
capital without needing a
typical 9 to 5 job.
We can do that once our trust fund
is established.
The key is for us to find ways to
put the limited cash that we
currently have to work in
the most effective ways possible
no matter how much we have no matter
where we're starting.
We need to shift our mindset to
begin looking for opportunities to
put our money to work so we can earn
money for us.
So let's imagine that we eat go to
lunch a few days a week maybe
it makes sense for us to stop doing
that or at least do it less.
And then we take that money that
we're not spending there and we put
it to work in some dividend paying
stock or a piece of real estate or
growth stock or an ETF or whatever
it might be.
So just to illustrate how about we
take that money that we're going to
spend on lunch and instead we go and
we buy a single share of AT&T.
Right now they're trading at about
38 dollars per share.
So we take our lunch money we go buy
AT&T maybe we get a little extra
cash lying around.
We buy a company like Con Ed which
is a utility company or a paint
company like Sherwin Williams.
Well maybe we go ahead and
we try to buy one share of each of
those. The beautiful part about
today's day and age is that we could
buy a single share.
We could buy a pass or share.
We could take 20 dollars.
We would have put into an expense
on the liability side.
We could put it to work right away.
The point is if we shift our mindset
to constantly be looking for
opportunities to get that money to
work right now as fast
as we can the better off we're going
to be. So assuming we've
done our research how many shares of
AT&T could we buy.
Each week we buy 1
2 5 10
shares of content. How many shares
of Sherman Williams How about
a company like Apple.
How many shares that could we buy
each week.
Well let's pretend that we had
started doing this let's say 10
years ago and we only in a few
thousand dollars to kick off the
whole process with maybe we had 4000
adults maybe more maybe less maybe
none.
Either way the point is to start
investing as soon as possible
look for opportunities we have to go
out and buy let's say a new shirt
and shirts maybe 50 or 100
miles well we're not going to spend
a hundred Alls we decide not to
spend 100 dollars we're going to
spend 50 dollars instead we're gonna
put the other 50 we're gonna go buy
a share of a stock or a bond
or a piece of a real estate
investment trust whatever it might
be. So what if we're able to put
let's say 50 dollars a week.
Each one of these four companies.
That's just seven dollars and 15
cents per day.
Well right now assuming
that we had reinvested that money
all the dividends that they brought
in we reinvested into the shares.
Right now we'd be collecting more
than six thousand dollars in
dividends each year.
And that's just dividends.
That's not even accounting for the
fact that our portfolio would be
almost three hundred thousand
dollars today.
And perhaps we could use some of
that six thousand dollars in
dividends we're collecting to pay
some of our necessary expenses.
The other advantage to this type of
thing is that because we've held
many of these shares for a long time
these dividends are often qualified
dividends.
And as of 20 19
many qualified dividends up to a
certain amount.
You don't have to pay any taxes on.
And even the ones you do have to pay
taxes on.
It's a very low tax rate relative
to what we would typically be taxed
at our company or at our job or
whatever it might be.
Another advantage I'm sure we're all
aware of is that once we
have some money more opportunities
are likely to come our way.
Maybe we're sitting on this three
hundred thousand dollar portfolio
and we get an opportunity to flip
a real estate property.
Well oftentimes compared
to the cash that we put in well
the return on investment from
a real estate flipping
a real estate property could
return a significant amount of money
in a relatively short period of
time. If we didn't have this strand
or thousand dollar portfolio that
might never never have come to us.
Now I'm sure we can already hear
some of the naysayers out there
and some of the rebuttals that we're
likely to hear would be things like
well the stock market is too high
right now.
And maybe that's true if that's true
we could go ahead and buy bonds or
real estate. The point is that
if we do our research and stick with
investments that we believe are well
positioned for solid growth
at least in the near future then
any one of us can build
our very own trust fund.
And the longer we invest and the
more we can return on those
investments the better the chance
we have of amassing
a great amount of wealth.
Now personally this is one of the
main reasons I started this youtube
channel. I recognize that many
people aren't terribly confident
when it comes to making investments.
My goal is to help guide
investors as to what
they could look for.
Show them how to analyze potential
investments and hopefully
inspire anybody
that is interested in building
their own wealth.
Inspire them to put their money in
the best possible investments that
they can find.
And like I said if each of us focus
on shifting our mindset to
look at investments not as something
that we have to do something like a
savings account but instead as
something that we desperately want
to do in order to accumulate
as many solid investments as we
possibly can.
Well if we were to look at investing
like that getting rich
is inevitable as long as
we're smart about doing it as
long as what we do is we eliminate
our needless expenses instead of
going out and buying the new iPhone.
We take out our phone we log into
our bank account and we move that
money into our brokerage account.
We buy a stock just like that.
We've already researched it.
Maybe we have a list of stocks that
we're already interested in.
We jump in and buy right away.
Now when we go to bed tonight sure
we don't have the new iPhone but we
got you know a few shares of this
or a few shares of that that
is likely to serve us much
better in the long run.
My final point is on the time it
takes to accumulate real wealth
I understand that it takes a lot of
time. It does.
That's unavoidable.
If anybody is trying to sell you on
the concept of getting rich quickly
I would be super cautious about
that.
It's going to take a lot of time but
the time is going to pass anyways
no matter what it's passing.
We might as well put ourselves in
the best possible position to build
our wealth and build it in a manner
that will one day allow us for us
not to have to work at all
and live off of what
whatever revenue we can generate
from the assets that we've built up.
Now if you know a sure way to start
outside of knowing that we
need to spend less on the liability
side and shift that capital
into the assets side outside
of that I'm actually working I'm
researching in the middle of
research right now for my next
video. The top three best
investments for beginners.
What would be the three investments
I would go into right now if I was
just starting.
So if you haven't done so yet hit
the subscribe button hit the bell
icon so I appreciate you sticking
with me all the way into the video.
I hope you found this interesting
and hopefully you
will each find ourselves thinking
about ways to accumulate and built
each of our own wealth.
So if you have any questions or any
video ideas please let me know
what you think in the comments
below. Thank you again for stick
with me at the end.
I see in the next video next.