If you take a look at this chart, you won't see anything unusual at first glance,
but if you give it a closer look, you will realize that almost 80 percent of the money that has ever
been printed was printed in the last 2 years. Think for a moment, the US dollar was created
back in 1792, more than 200 years ago, and out of all the money that's in the economy, 80 percent of
it was printed just in the last 24 months. If you are still confused, why is that scary?
Then you probably hadn't heard what happened in Zimbabwe in 2006 when the government began
printing so much money that the currency became so worthless that even a 100 trillion dollar note
couldn't get you a loaf of bread. History is filled with such examples,
from the German hyperinflation in the 1920s to ancient Rome. Money has its set of rules and
principles, and if you do not follow these rules, it's going to bankrupt not just simple people
but entire nations. A lot of times, people work hard but still end up struggling financially,
not because they are lazy but because they are ignoring the rules of money.
We have seen countless examples when lazy people make fortunes while hard-working
people barely pay the bills, so we end up criticizing the system and complaining that
life is unfair. That's why it's important to master the rules of the game first because without
them, get ready to struggle financially for the rest of your life. But if you want to escape the
rat race and achieve financial indolence, here are 5 rules of money that you must absolutely follow.
But before we do that, make sure to give this video a thumbs up, and let's dive in.
Master the system
Capitalism is a system that a lot of people don't understand how it works. That's why they
struggle financially. However, the word itself capitalism tells you everything you need to
know about capitalism - CAPITAL. This is the only ingredient you need to make it financially today.
If you look at any rich people, you will realize one common trait among all of them. They have the
capital that keeps generating income. The bigger the capital, the more it generates. So the idea
behind capitalism is that if you have nothing in the beginning, which is absolutely normal,
your main job should be acquiring capital. How you do that, is a different question.
Most people don't understand that simple fact, so they forever get trapped in
the world where their only currency is their time. Even if they end up making
6 or 7 figures, they get a better car, go to fancier restaurants or move to a bigger house
and never build a big enough capital that would grant them the freedom they so desperately want.
2. Money won't buy your time back A lot of people compare time with money.
Haven't you heard the phrase time is money? Time is money only when you trade your time for
money, but overall, time is far more valuable, and unlike money, time canэt be earned back. You can't
go to work to buy more time. When the time passes, it's over. You can't get it back. When your youth
is over, you aren't going to become young again. That period of your life will only exist in the
past, no matter how much money you have. When you are old, you cant' go back to being young even if
you have all the money in the world. And that's something people understand too late, especially
when they are young. They imagine that life will be amazing when they make a lot of money,
but what they don't understand is that time is ticking, and it's not waiting for them.
Just because we live in this capitalistic world doesn't mean that your entire life has to be about
money because if you look at life in general, money is just one out of many aspects of it.
3. No amount of money will satisfy you.
I remember when I was back in college, I literally used to live on pennies because
I had to pay for my tuition, I had to attend classes at the same time,
and I had to work to pay the bills, so I did not have enough time to work to make enough money
to live comfortably that's why I lived on pennies. I used to imagine that if I
just make double the amount I do now or, God forbid, triple the paycheck that I get today,
I will be living like a king! But when the day came, when I started
making triple the amount I used to, I realized that I needed far more, so I set another goal
that I would settle when I will be making 10 times the amount I used to. But what ended up
happening is that even when I started making 100 times the money that I used to back in college,
I felt like that it was not enough. Every time I ask myself - how much is enough?!
I mean, if you think about it, let's say you make $1 million. That is a lot of money, it's enough
to enjoy life, but it's not enough to get you a $200 million yacht. But let's say you have a
half a billion net worth, a yacht and a private jet. You live in a palace, but to be honest,
when you look up and compare yourself to these billionaires, you are not even on the list!
But even if you get on the list, you'll look at the top of the list,
where you will find people who literally have hundreds of billions of dollars. Your $2 billion
is not even money compared to their wealth. But even if you get your 200 or $300 billion,
you can look around, and you will find people who own entire nations!
The constitution of that country literally says that this person owns this country or this country
belongs to this family (QATAR, Brunai). So, you start wondering what is that point or what is that
milestone where you can say that this is enough. My experience says that there is no such a point!
You create that point. You determine what is enough for you!
The sooner you create it, the better! That doesn't mean you should stop earning money,
but you should make it clear to yourself that more money is not something you should solely focus on.
4. Savings for the sake of saving is dumb
We talk a lot on the channel about the importance of saving but the truth is that
saving money is actually, in many ways is dumb because what's the point of money? What is the
point of making money and then leaving it all? I know that it's scary to think about that. But the
harsh reality is that your time here on earth is limited, and as we have discussed earlier,
there is no way you can buy more time, so taking all of that money with you to the grave is dumb.
Before you start saving money, ask yourself a simple question - why am I saving money? What
is the purpose behind saving money? and you should have a clear goal behind it.
For example, to become financially independent. Then you should set
a specific number at which you will consider yourself financially free.
Build a plan on how much you are going to save every month or out of every paycheck,
how you are going to invest that money. It will make the process much easier because
from now onwards you know why you are saving and what's the end goal and how you will get there.
Because once you save enough to build that capital,
then you don't have to deny yourself the pleasures that life has to offer no matter What happens? You
know that you can rely on your investments that generate enough to keep you afloat.
5. money grows on trees. I know that you probably heard
the absolute opposite that money doesn't grow on trees. I've heard that that countless times from
my parents. Whenever I would ask my dad to buy me something when I was a kid, he would reply,
do you think money grows on trees! But if you think about it, the concept
of capitalism is exactly like the concept of a tree. Have you ever tried planting a tree?
It is not easy! It takes a lot of effort, and even after putting all of the effort, it is not going
to grow overnight. It takes years to grow when you finally can enjoy the fruits! The same goes
for investments. When you are building capital or an asset, besides the amount of effort that it
takes in the beginning to build, it takes years for it to mature to finally start giving back.
The rules of money do not stop here. The game of money is both complicated and straightforward.
However, when you master the rules, it gets much easier to succeed. I
am not by any means telling you to make money as your first priority,
however like it or not, it's going to play an important role in your life.
I hope you guys have enjoyed this video and if you did give it a thumbs-up,
and if you're new around here, then make sure to subscribe and
turn on your notifications thanks for watching and until next time.