How To Get RICH - Lessons From The Richest People In The World - video Dailymotion

Matt | Personal Finance

In this video, I share the financial tactics from some of the Richest people in the World, I talk about why the Rich focus on growing their Wealth and Cashflow to keep getting richer and how you can get started towards financial freedom  These are the financial lessons they should teach you in school!   How did they richest people in the world make their money?  #millionaire #howtobeamillionaire #personalfinance #wealth #wealthbuilding #makingmoney #moneytips #personalfinancetips

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00:00hi everyone in this video I'm going to talk about why rich people like Elon Musk Jeff Bezos

00:09Warren Buffett all focus on growing their wealth and cash flow rather than their earned income and

00:15I'll cover three things what I mean by growing wealth and cash flow why rich people do this and

00:21how you can get started doing it yourself firstly what do I mean by growing your wealth and cash

00:27flow well if you look at some of the wealthiest people in the world I've mentioned a few already

00:31Elon Musk Warren Buffett their wealth is not based on having cash in the bank it's based on the value

00:38of the assets they own they've acquired assets such as property or businesses which increase

00:44in equity value ie the price of those assets increases in value and on top of this they also

00:51generate cash flow and money generated from positive cash flow is then reinvested in buying

00:58more assets and that cycle keeps on compounding growing the amount of assets they have and their

01:04wealth and generating larger and larger amounts of income in parallel and this is a far greater

01:10multiplying effect than trying to solely rely on growing your salary and earned income and trying

01:17to save your way to becoming a millionaire part two why do rich people do this so I've talked about

01:24the compounding effect of growing your wealth and reinvesting it another key benefit is tax now tax

01:31rules vary depending on where you are in the world but in general wealth tax such as capital gains tax is

01:38at a lower rate than income tax so by focusing your investments on growing your wealth it makes it easier

01:46to retain your money compared to earned income let's take a very simple example if I own shares in a

01:53company that I founded and the value of those shares are 1 million pounds at the start of the year and 2

01:59million pounds at the end of the year the growth in wealth won't get taxed because while I'm twice as

02:06rich I've received zero income whereas if I earned a 50,000 pound salary because it's treated as income it

02:14would be taxed in the UK we have something called capital gains tax but this is only applied if you

02:20sell the shares and realize a profit above any tax allowances you might have in a particular year on

02:26top of the tax benefit there's also a widespread tactic by the rich to borrow cash secured against

02:32their wealth again this is not income this is proceeds of a loan this creates more leverage to buy more

02:39assets and that wealth multiplier effect keeps on going so these three things the compounding effect

02:46of their investments the tax benefits and the ability to secure loans are key drivers why the rich focus on

02:54growing wealth part three how can you apply these principles to grow your wealth and cash flow there's

03:00a few ways to get started number one apply the rich dad mindset pay yourself first and get capital to

03:08invest there's a great book called rich dad poor dad by Robert Kiyosaki which talks about the concept of

03:15paying yourself first which is what rich people do versus poor people who pay themselves last and what he means

03:23by this is instead of having the mindset of as soon as you have income coming in you pay all your bills and

03:30then you've spent all your money by the end of the month so you have nothing to save and invest rich people on the

03:36other hand when money comes in they put a chunk of it to one side to invest and then they manage their

03:43budget and cost of living to be within what they have left for the month one of the things i found

03:49really helpful was to set a goal for the amount of money to save and invest when my paycheck comes in

03:55and to have an expenses tracker to talk the unnecessary expenditure so unable to manage my budget and live within my

04:04means for a particular month there are some good apps out there that can help you with this such

04:08as money dashboard or money hub number two once you have that initial capital of money invest in assets

04:16with a long-term view to generate wealth this could be buying property real estate or it could be buying

04:22small businesses cody sanchez did just that she acquired 27 businesses and made 10 million dollars by the age

04:30of 30. that's pretty impressive it sounds daunting and expensive to buy a business but you really

04:37don't need to be an expert in a business to buy it and you also don't need to be an investment banker

04:43cody buys what she calls everyday boring businesses she went out into her local community onto her local

04:50high street and spoke to business owners and she found a laundrette which was owned by someone who wanted to

04:56retire and she agreed to buy that business and it makes 67 000 per year she put in an operator someone

05:04who could run that business day to day and it's turned into regular cash flow and a wealth generator for

05:10her i love this example because it just shows investing doesn't need to be overly complicated or only done

05:17by certain privileged people it really can be done by anyone the key is to buy assets which generate a

05:23positive cash flow so you can use the money to buy more assets and grow your wealth and number three

05:31spend money on professional tax and accounting advice so you set up and manage your finances in the

05:37right way and also to protect your wealth i hired an accountant and the amount of money that i paid him

05:43is nothing compared to the amount of money that he saved me by setting up in the right way from the start

05:49so i hope this video has been helpful we've covered what it means by growing wealth why rich people do

05:58this and how you can apply some of the principles to grow your own wealth feel free to add any questions

06:05in the comments and give it a like and a subscribe i'll see you on the next video take care and bye for now

How To Get RICH - Lessons From The Richest People In The World

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