15 Things Poor People Don’t Know About Making Money

hallo a lakh sirs were excited to be back this Sunday with another cold shower this one should serve as both a wake-up call to some of you as well as the light that shines your path forward you're going to find answers to questions you didn't know you had but for that you need to put your feelings aside and act like a big boy or girl and be honest with what's actually happening in your life welcome to a Lux calm the place where future billionaires come to get inspired if you're not subscribed yet you're missing out fundamentally and this shouldn't come as a shock poor people are bad at making and keeping money otherwise they wouldn't be poor what better way to tackle this issue than to actually give you guys the cheat sheet - what money making is all about here are 15 things poor people don't know about making money in the same a LOX fashion you've grown to know and love number 1 you can pay little to no money in taxes if you start a business this should become a knowledge to almost anyone but just to make sure we're going to say it once again businesses do not pay taxes on income they pay taxes on what's left after you subtract expenses money they're able to generate if you spend the money the business generated on goods and services that benefit the business you will not pay taxes at all the more business expenses you have the less amount of money is left to be taxed that's why people spend millions on private jets it's a business expense because it allows you to meet with clients the private jet is a deductible so is the jet fuel meals with clients and restaurants traveling for work and so on this is a fundamental difference between businesses and individuals to illustrate it in the simplest way possible business makes money spends money then gets taxed on what's left individual earns money gets taxed on that money and spends what's left the average American pays somewhere around 27% in income tax while in Europe it's closer to 50% meanwhile the average corporation pays between zero and three percent in taxes number two making money is about system solving not working hard you make money when you're able to solve and put together all the pieces in the puzzle the only way poor people know how to make money is to work for it exchanging time and effort and to someone else paying you for it the only value comes from your ability to create a chain of systems that transform input into money here's what we mean by that in a simple way poor people earn money by being the salesperson at a lemonade stand the owner of the stand is paying you by hour in this case you're just a piece of the puzzle the lemonade stand owner has the following pieces one identify the product or service in our case lemonade it's the good that gets exchanged for money at the end of the chain now let's see what happens before the sale of lemonade - you have to stand where the lemonade is sold at but the fresh lemonade doesn't sell itself so you have to bring in someone else 3 the person who's selling the lemonade now that you think about it this person needs to receive the ingredients in our case cups lemons water and sugar and so on for transport of the ingredients to the lemonade stand as well as 5 the actual ingredients that need to be purchased from what is called a supplier to put this process in business terms supplier distribution process sales consumer see how the lemonade seller is only a piece of the puzzle while the owner needs to think about all of these elements as a rule of thumb the employee gets one dollar for every $10 of value they're able to generate for the owner the reward for solving the process is a lot bigger than being a wheel in the machine the moment you're able to solve the puzzle of processes you can begin to take full advantage of the marketplace which will make you more money if not rich number three make money while you sleep or you'll never be rich listen and listen very carefully as long as you're trading time for money you will never be rich why because there's a limited number of hours in a day that you can trade even if you traded all of them you would still hit an earning wall your ability to generate income should not be tied to you don't be the machine that makes money build the machine that makes money for you this is why the previous point of solving the system is so damn important unless you take back control of your time you'll always be poor eight hours of your day you're asleep eight hours a day you spend at work two hours get wasted and traffic going to and from work and you're left with six hours in a day to eat do chores invest in yourself figure out who you are date and have a romantic life there's realistically not enough time for all of them so what do people do they sacrifice some of these without realizing that they're actually the things that make life worth a living you're not just here to wake up go to work pay your bills until one day you die number four it takes the same amount of effort to make $50,000 as it does for 1 million this one will get most people confused we can almost hear all the heads tilting and your inner voice going huh what wait a minute it took us over five years to understand this concept because it felt so disconnected from where we were sitting in the earlier days a mentor of ours gave us the following compliment and advice Wow congratulations on the effort quality and amount of work you're putting him it's a shame you're focused on the wrong thing once you're able to solve the puzzles might as well try to solve the ones with the bigger rewards what's the point of working as hard for a fraction of the reward it took us three years to find a different puzzle and two more before we were able to solve it but the reward was definitely worth it here's how it applies to you if you're earning $2,000 a month selling telecom subscriptions over the phone you could earn over $20,000 a month by selling cars or real estate the process is quite similar but the rewards greater pushing this example further that same person could earn over $100,000 a month selling stocks on Wall Street the sales process is the same but your focus isn't right number-5 ideas are worthless without extended execution can y'all please stop with a million dollar idea that you have how long have we been saying this year at a Huck's an idea is worth a million dollars only after it made a million dollars everybody has ideas you can stop anyone on the street and they'll be able to vomit one or two business ideas that they think are worth quite a fortune please pay attention for what we're about to tell you and change the way you think about ideas for as long as you live an idea is a multiplier to your execution even if you have a killer idea that's worth a 100 times multiplier if your execution is zero to the math zero times 100 is zero your ability to execute is multiplied by the quality of your idea which means take any mediocre idea and simply execute better on it that is how you win that's why Google crushed Yahoo Facebook crushed MySpace that's why tic toc one we're vine failed that's why McDonald's one over the other burger franchises at the time that's why Starbucks is still winning the coffee game making coffee with milk isn't an 85 billion dollar idea but the puzzle they've been able to solve and plan they've been able to execute on the way is success comes from being able to execute at a high level for extended periods of time and please do not neglect the extended periods of time part it's really important number 6 instead of cutting down costs focus on increasing income or people cut coupons they spend hours figuring out ways to save a couple of pennies you know another of our favorite sayings a penny saved isn't a penny earned it's just a penny it doesn't matter if you're worth $1,000 an hour or 750 why are you wasting two hours of your life driving to three different supermarkets just to save $10 on some detergent the return on your time is a whack we deeply despise from the bottom of our hearts the people that spend their efforts trying to cut down personal costs that time could go toward increasing income if you're earning 750 an hour and you have time to go to three supermarkets you've got time to learn Microsoft Excel here on YouTube and find a different job that pays three times that amount instead of wasting time cutting costs invest that time into becoming more valuable why because there's always a limit to how much you can cut costs but there's never a limit to how much you can earn number seven $100 in passive income is worth more than $1,000 of worked income this is something counterintuitive to most people and we are glad to get the opportunity to finally address it and maybe lighten the path forward the average person looks at our comparison and scoffs right away how can $1,000 be worth less than $100 well here's why that thousand dollars is dependent on you being able to show up to perform to secure clients etc while the hundred isn't that hundred will come in no matter what you do what happens if you get hit by a car or get sick and your ability to perform goes away passive income also frees up your life ready to have your mind blown forty thousand dollars per year and passive income is worth more than two hundred thousand dollars a year with a normal job at $200,000 per year job will require your time effort and attention at least five days a week you know you'd be working weekends as well in some form or another it also chains you to a desk to a location to a country to an office for $200,000 you'd be stressed the hell out and have to put up with a shitty boss with $40,000 per year you could live almost anywhere in the world and have 100% of the time to yourself want to learn tango sure want to raise bees in the wilderness more power to you maybe write that book you've been planning to do or spend as much time as you want with your kids passive income revenue is multiplied in value by the time it frees up if with the $200,000 job you had 10 hours a week to spend with your family passive income those 10 hours daily you don't waste at the office or in transit grants you an extra 50 hours per week and we didn't even include the time during the weekends in this example the passive income grants you five times more free time to focus on the things you love which is why $40,000 in passive income is worth more than a $200,000 a year job number eight over fifty percent of your income should go toward investments you cannot escape the rat race if you're saving five or ten percent you just can't you might be able to have enough funds to overcome a hurdle but that's not enough to buy yourself freedom want to hear something that's going to blow your mind away last year we saved or invested between eighty to ninety percent of our income and you know what we did similar numbers that year before and the year before that we're probably going to do the same thing this year and the one following we're not alone in this almost everyone in our circle saves and invests at least sixty percent of their income this is freedom money this money buys real estate buy stocks goes towards other business investments the truth is poor people have no way of saving this much of their income because their income barely covers their basic needs the problem is they completely disregard everything else we mentioned earlier on this list the moment you begin to increase your income don't act stupid and increase your lifestyle dramatically it all boils down to simple math do you want to know how much money you should be making to be free first of all you need to know how much does it cost you to be alive with your current lifestyle we'll call this lifestyle cost in order to be free your passive income needs to be at least double that of your lifestyle cost if you're looking to actively earn your freedom by working in order to be free your active income needs to be at least five times the lifestyle cost if being who you are costs fifty thousand dollars a year you need to bring in at least two hundred and fifty thousand dollars to be free why because out of that two hundred and fifty thousand dollars fifty thousand will go toward expenses and the remaining 80 percent needs to go toward buying yourself that freedom through investments if you're poor right now here's your to-do list one learn new skills that immediately improve your market value to start by building a system that does not rely on you earning money on the side three when the new money starts coming in switch to the side project full-time 4 reinvest everything in that business while also living below your means and 5 when the real money comes in move it to alternate investments this is the most truthful approach you'll ever get to this issue you're welcome a Luxor's number 9 1 million dollars per year isn't a lot of money you can almost hear all the butts clenching around the word as we mentioned it we all grew up with this idea of a millionaire that 1 million dollars was enough to set you up for life because it used to be true back in the 60s maybe it still feels true if you live in a poorer part of the world and right now believe you don't need that much the paradox is that only those who are earning in excess of 1 million dollars per year realize it's just a decent earning money is getting devalued every single year let us put this into perspective for you at the US as the main example as of the beginning of 2020 there were 1. 75 trillion dollars worth of notes in circulation that's actual money bills out there in the marketplace scared that the economy would tank because of the coronavirus the Fed decided to print another 2. 3 trillion dollars out of thin air and simply give it to the people and businesses to avoid a financial collapse value comes from scarcity the more something is found in the marketplace the less valuable it is congratulations every dollar you have is worth less than half of what it used to be this devaluation of currency is called inflation every year the government prints new money and the stash you have in your Nike shoe boxes whereas the less and less 1 million dollars per year in 2020 is roughly the equivalent of two hundred and fifty thousand dollars just over 30 years ago not just because of inflation but also buying power real estate is a great barometer of this poor people fall victim to the system they don't understand that keeping money in cash is actually costing the money the rich leverage their understanding of the market and park their money in assets called store of value real estate gold art luxury goods and more recently crypto here's why 1 million dollars per year isn't that much money to begin with the average person will work approximately 40 years right between the ages of 25 to 65 if you made 1 million dollars per year every year of your working life completely ignoring inflation and didn't spend a penny you still wouldn't have enough money to purchase this Rothko painting that sold for 46 million dollars or this one by Newman that sold for 43.

8 imagine working your entire life for 1 million dollars a year and still unable to buy a piece of canvas with 2 colors on it yet these types of paintings sell every single year number 10 a wall gets built brick by brick the same as wealth poor people always have this idea of striking it rich through unpredictable means luck would come their way and bless them with financial riches through rich never buy lottery tickets it's actually one of the reasons they became rich in the first place it's because they understand how wealth is built and you can't just leave this to chance pay close attention to how most poor people act with money notice their choices notice their thinking they have no problem spending ten fifty a hundred dollars on random unnecessary things but scoff at the idea of earning ten fifty or one hundred dollars that's too little money for them but when they have it they quickly throw it away on devices or things they don't need but a luxe you need a lot of money to build passive income and we don't have that kind of money this is why we decided to make this video the average person doesn't understand that you can build passive income with as little as ten to fifty dollars and this has always been possible you're just not educated enough to see it let us take you to school on this the simplest and cheapest way to create passive income is through investing in dividend-paying companies this down on your notebook how do you do that you use any investment platform Robinhood revolute eToro etc and purchased companies that are paying dividends every quarter these companies split up the profit between the shareholders here are 3 dividend paying stocks super accessible to beginners toronto-dominion bank 3. 6% Realty income 4. 9% Walmart 2.

5% you start off small move some of the money into dividend-paying companies that you know and trust this way your wealth grows you'll store value but when these companies to make money you get paid as well building a wall requires you to put in one brick at a time so does building wealth if you want to escape this situation you're in you need to not only be more educated about the tools you have at your disposal and we'll touch on that a number 12 but also begin to act on the information you're learning stop waiting for someone else to make you rich that stimulus check if you even got one at all won't stretch very far we promise there are three fundamental books to read if you want to educate yourself on wealth building one money master the game by Tony Robbins in our opinion the best beginner book on using little money and stocks to build wealth 2 Rich Dad Poor Dad by Robert Kiyosaki the best book on the fundamentals of cashflow and passive income pen 3 The Millionaire Fastlane by MJ DeMarco the counter to the previous two books mentioned and what it takes to build a multi-million dollar company these are mandatory reading for everyone watching this video these cover the basics without them you're gonna have a hard time with money stop thinking that books are expensive because currently your life is cheap your life is cheap because you think investing in yourself is expensive but let's say you're truly struggling and can't afford twenty dollars for a book just go to a luxe comm slash free book right now and sign up our friends at audible are giving our community one free audio book and if this is your first time signing up you're in luck pick any one of these three books and listen to it on repeat until you get every ounce of value out of it pause video and go to a Lux calm slash free buck right now the more educated you are the more you're able to understand what's happening all around you number 11 never borrow money that doesn't go toward making more money what are you doing buying a TV on credit why are you ready to go into installment payments on the new Playstation why are you borrowing money to buy a dress or a handbag just stop we know many people lack access to funding in case of emergencies which is why they're taken advantage of by predatory loan shark like institutions believe it or not these people borrow money from payday loan companies without understanding the contracts they're signing they're paying seventy to two hundred and fifty percent yearly interest on the money they're borrowing for stupid this happens all around the world the UK has the same problem as the u. s.