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00:00 Foreign, are you looking to build wealth and secure your financial future? Have you ever
00:09 wondered why the rich keep getting richer while many of us struggle to accumulate wealth
00:15 in this video? We'll explore the seven proven assets that can help you build wealth and
00:20 achieve financial security. Join me as we uncover the secrets of the wealthy and learn
00:27 how you too can create a lasting legacy of financial independence. It's no secret that
00:33 the wealthy often generate more income than those with lower incomes. This is due to a
00:38 multitude of factors. Today we will explore seven things that make rich people richer
00:44 so subscribe to the channel and let's get started. Poor and middle class people save
00:49 money in banks while rich people invest in assets. For those who don't know, assets are
00:54 items that generate income for us with minimal or no effort. Before we delve deeper into
01:00 this topic, it is important to note that in many countries interest rates were negative
01:05 a few years ago. For example, the interest rate in the USA was -1.75 in Switzerland,
01:13 -0.75% in Denmark, -0.6% in Japan, -0.1% and so on. By lowering interest rates, central
01:24 banks in these countries made it cheaper for businesses and individuals to borrow money
01:30 encouraging spending and investment. These countries was doing this so that the general
01:35 public can become self-dependent and find ideas that will help their country grow instead
01:42 of just saving. In my opinion, this was a big experiment banks were doing, which we
01:47 can discuss in another video, however today's topic is something else. We will discuss the
01:53 seven assets in which wealthy people invest money. Let's start with real estate, which
01:58 are among the seven proven assets that can help you build wealth and achieve financial
02:04 security. Are you wondering why I prioritize real estate? Well, according to Forbes, real
02:10 estate is the key to becoming a millionaire. People who are wealthy tend to invest their
02:16 money in property in the following ways. The first is flipping flipping is a popular real
02:22 estate investment strategy, which involves buying a property at a lower price than the
02:27 market price and then improving the property after a few years and selling it for more.
02:33 This can be done either by renovating or remodeling the home or by simply holding on to the property
02:40 value increases over time. The goal of flipping is to make a profit from the difference between
02:46 what you paid for the property and what you sell it for. As an example of flipping in
02:51 California, if there's a pile of trash on a property and a sewer pipe in front of it,
02:57 no one is willing to buy it. However, a savvy real estate dealer arrives and buys the property
03:03 at a very low price. By spending a little more money, he took out the trash, lined the
03:08 land and cleared the sewage pipe in front of the property. Within a few years, he will
03:14 be able to sell the same property for three or four times the original price, despite
03:19 the one-time payment that enabled him to benefit from the property only. Once real estate dealers
03:25 and investors are not attracted to such a strategy, this is because they would not be
03:30 able to take full advantage of the asset. Long-term real estate investors are those
03:36 who choose to hold their properties instead of selling them. This approach is beneficial
03:41 as it allows them to use the asset to generate wealth over time. Let's discuss the four
03:47 benefits of owning a property. The first benefit of owning property is OPM-OPM, is an acronym
03:54 for Other People's Money, which allows for creating wealth from borrowed funds. This
03:59 method of financing is much quicker than other asset classes when it comes to real estate.
04:05 Even if no bank agrees to lend money for investment in the company's shares, a loan can still
04:11 be obtained for buying real estate. The second benefit of owning property is the appreciation
04:17 that comes with it if you retain ownership of the property, meaning if you do not sell
04:22 the property and hold it, then the price of the property will increase over a long period
04:28 of time, which means that your net worth, your wealth will increase. The third benefit
04:33 is tax benefit, in addition to the financial and security benefits of owning a rental property
04:39 benefits in terms of taxation apply as well. The government basically assumes that any
04:44 property bought has an expected life of 60 years, for example, for instance, if someone
04:50 with considerable wealth decides to purchase a home that can be used as a rental property,
04:56 they can receive tax deductions. Let's use this as an example. Suppose a wealthy person
05:01 has three properties, a building worth $600,000, another building worth $900,000, and a house
05:08 worth $500,000. By the government's calculation, they assume that the two buildings have an
05:15 expected lifespan of 60 years, which would entitle this person to a tax deduction. The
05:24 wealthy have a distinct advantage when it comes to taxes. They are able to save more
05:28 money due to having multiple pieces of real estate in comparison, someone who is self-employed
05:34 or unemployed may continue paying taxes with little to no deductions, while the wealthy
05:40 person enjoys the benefits of exemptions. The fourth benefit is the long-term cash flow.
05:47 One of the key advantages of investing in real estate is the long-term cash flow it
05:52 can generate. You can set up a steady stream of rental income, which may even increase
05:57 each year. Additionally, many wealthy people make use of loans to put a bigger sum into
06:03 property investments. Furthermore, landlords generally charge more rent than the amount
06:09 of the loan they take out in order to avoid paying it out of pocket. This approach allows
06:14 them to get tax advantages on extra money that they receive furthermore. By increasing
06:20 the property value, their total net worth continues to grow. This is a win-win-win-win
06:26 situation. Next comes buying shares of a company, which are among the seven proven assets that
06:31 can help you build wealth and achieve financial security for those who have knowledge about
06:37 investing. This is the best way to earn money, however, for those with less knowledge. Buying
06:42 shares is risky. So the question is, what shares should we buy? According to Peter Lynch,
06:49 a renowned investor, says that the average person has two to three investment opportunities
06:54 annually that are right under their nose. However, to take advantage of these chances,
06:59 one must keep an eye on current happenings and events. For instance, a regular hairdresser
07:05 knows which company's products are selling the most, a doctor knows which new medicine
07:10 has become a necessity for patients, or which new medicine has been released that no other
07:16 company has created likewise. The average housewife is usually aware of any new products
07:22 that have hit the market and can give feedback on what her and her friends think of it similarly.
07:28 A model knows which new brand is trending in the market. Peter Lynch says that when
07:33 we notice trends in the market, we should check whether the company producing those
07:37 products is publicly traded or not. This does not mean that we should go and buy their shares,
07:43 rather it means that we have shortlisted these companies, and now we have to go and read
07:48 their financial statements to find out if their shares are selling or not, meaning that
07:54 we need to know more about them, such as how much money they earn, and if they have taken
07:59 a loan this way, we can find many opportunities. Unfortunately, Peter Lynch says that people
08:05 do the opposite. For example, a doctor is investing in a raw material company instead
08:11 of medicine, and a person working in a raw material company is investing in pharmaceuticals.
08:17 However, everyone tends to think that something magical is happening on the other side, and
08:23 we don't pay attention to industries that we can understand. That is why he states that
08:28 the stock market is a tool that takes money from the impatient and gives it to the patient.
08:35 The point is money never sleeps, and that there is still time for you to invest in some
08:40 different industries. By the way, if you are enjoying the video so far, and want more topics
08:46 like this, comment the word "more" so I know the next 7 proven assets that can help build
08:52 wealth, or licensing. Licensing is not a common practice among the upper middle class, but
08:57 it is a valuable asset that should not be overlooked. Licensing can be a powerful source
09:03 of income, as evidenced by Bill Gates receiving royalties from Microsoft. This type of passive
09:10 income can allow you to generate recurring revenue streams without much effort if we
09:15 talk about common people. Stephen Key is a great example of someone who has made a lot
09:20 of money from his simple ideas. He even created and sold Michael Jordan's wall ball game,
09:27 and he also earns commissions from various products. You may be wondering who Stephen
09:32 Key is. Stephen Key is a successful inventor and entrepreneur who has licensed more than
09:38 20 products and has earned millions of dollars in royalties. Stephen Key had a game-changing
09:45 success with his design, which was sold to an organization for 10 years of annual payments.
09:51 Interestingly, he only spent approximately $20-30 to make the design his second breakthrough
09:57 invention. Was the twist a basic bottle with an additional label behind it, which reveals
10:04 a lot of data. Stephen earned an annual salary of $1 million per year accumulated from his
10:10 design work by putting in time and effort only once you can get remarkable returns if
10:16 a company is not yours, and neither are the customers yet the idea belongs to you. Then
10:22 the rewards could be really high. Moving on to the next proven assets that can help you
10:27 build wealth is index funds. American index funds are a type of mutual fund that track
10:34 a particular stock market index, such as the SP500 or the Dow Jones Industrial Average.
10:41 These funds are designed to provide investors with exposure to a broad market index and
10:46 offer low fees diversification. And an easy way to invest in the stock market now when
10:52 talking about the SP500 index fund, you are not buying a single share, but instead investing
10:59 in the 500 biggest corporations based in the United States high net worth. People often
11:05 use this as a long-term investment to increase their wealth over time. Consequently, these
11:11 people can make money from it whenever the market falls. The wealthy invest more money
11:16 in the SP500, while middle class people take their money out, resulting in the redistribution
11:22 of funds, meaning the money of the middle class and lower middle class gets transferred
11:27 to the rich, who keep getting richer. I have created a video explaining how index funds
11:33 work, make sure to check the video in the description section. Next comes digital assets,
11:40 which are among the seven proven assets that can help you build wealth and achieve financial
11:45 security. Digital assets are becoming more popular as a tool to help build wealth. They
11:51 come in various forms, including cryptocurrency, blockchain technology, real estate, investment,
11:57 trusts, and more investing in these assets can be a smart way to create long-term wealth.
12:04 Our previous generations weren't able to benefit from this type of opportunity, but today's
12:09 young people are well aware and capitalizing on it. They create digital courses and products
12:15 that they can replicate and distribute multiple times without any major production costs.
12:21 Jack Ma had previously suggested that Walmart needs to open more stores to boost product
12:26 sales, but this is no longer the case due to enhanced scalability. This has saved a
12:32 lot of time and energy in setting up new stores in different locations. Next come bonds, which
12:39 are among the seven proven assets that can help you build wealth and achieve financial
12:44 security. For those who are unaware, bonds are certificates that companies issue to lenders
12:50 when they are given a loan. It guarantees the repayment of the loan plus interest by
12:55 a certain date, which makes it much more secure than investing in shares. Bonds issued by
13:01 the government are preferred by many people for their greater security, as well as the
13:06 higher interest rate compared to a bank. Next comes businesses, which are among the seven
13:11 proven assets that can help you build wealth and achieve financial security. Obviously
13:17 businesses can earn a lot of money in a very short time, for wealthy people, businesses
13:23 do not mean that they have to work for them. Instead, businesses are assets that earn them
13:28 money with minimal effort. Although there are people like Oprah Winfrey and Elon Musk
13:34 who love their work and are not doing business solely for money, anyway today there are websites
13:40 where we can buy an established business. There are several companies today that are
13:45 dedicated to this. You may be wondering why buying an online business if you already have
13:51 an audience on social media and you are good at marketing, you can buy an online business,
13:57 make a few tweaks, and sell the product to your audience. This will save you time in
14:02 product creation. So far I have shared seven proven assets that can help you build wealth
14:08 and achieve financial security. The rich accumulate wealth and achieve financial security by using
14:15 these methods they put in their time and hard work once and get rewarded for the rest of
14:20 their lives. Investing in real estate is one of the first choices for many millionaires
14:25 as it provides them with easier access to loans and tax deductions. For those who don't
14:31 want to start their own business, investing in shares of a successful business is also
14:36 an option which can help you create wealth. Having the right knowledge is essential in
14:41 order to make sound investments. Licensing is one way of making money with a limited
14:46 investment. A good example of this is Stephen Key who was able to generate millions of dollars
14:52 in royalties with only a small amount of capital. If you want to understand this topic in detail,
14:59 then you can read or listen to his audio book, then turn your dreams into a licensing gold
15:04 mine while allowing others to do the work link. To access the audio book for free is
15:10 in the description below. I also share information about index funds, followed by bonds. This
15:17 video is for educational purposes only and does not constitute investment advice. Now,
15:24 if you are looking for ways to make more money, I recommend you watch this video next. Do
15:30 not hesitate to share this video with friends, subscribe to the channel, and share your thoughts
15:35 on today's video. Thanks for watching, and I'll see you in my next one.

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