How To Build Wealth For Beginners

are you one of the people who desires to create wealth or are you one of those people who just desires to have enough money just to be comfortable uh in this video I want to talk to the people who have a desire to create wealth uh not just wealth but lasting generational perpetuating wealth and in order to create wealth you have to understand the purpose of cash right um or the purpose of wealth what wealth is what wealth is not the purpose of cash and it's really fascinating when I talk to people like I can

talk to somebody for five minutes and I can pretty much even if we're just talking about something random I can pretty much assess where they are financially because because your words betray you they they tell people who you are and um creating wealth the idea feels hard until you learn how to do it and then once you learn how to do it you ask yourself the question why did I ever feel like this was hard I don't know if anybody can relate to what I'm talking about but like when you're on the comeup and you're

struggling financially and you're like I don't get why this isn't working you don't get why it's working but number one reason it's not working is because you don't understand what wealth is you don't understand the purpose of money and when you start to realize some of those things you don't understand understand the difference between cash flow and cash accumulation and cash perpetuation like you don't understand these Concepts you just think well money is the stuff you get when you go to work and you trade some of your time right and what you do with it

is you pay bills or what you do with it is you pay bills on time and you create good credit and so so my objective is to give you a totally different perspective because if you have a totally different perspective then maybe you'll shift your focus to a totally different purpose when it comes to money does that make sense and so when I think of like the concept in my book um on how to build a strong financial house you know you have you have it built on the foundation of truth because truth is the

foundation of everything right and then up here you have your asset protection and then you have your four windows and you have your door with your door knob of course okay and so you have this one is your income window and on your income window like most people get their income from their job right and so when people think of money they think number one job and what they do is they trade some of this for some of this and then they trade this for the stuff that they desire to have for their car their

insurance and their food and whatever their clothes and whatever else they they trade this for this and then this for everything else in their life okay cool and so because everything costs money people have they emphasize the money because everything costs money and so they think well if I can just accumulate more money and so people obsess because people obsess in America in the world over accumulating money and they think that they think that cash accumulation is the primary objective of cash but I I submit to you it's not so people who are wealthy understand

that Cath cash accumulation is not the primary purpose of wealth I'm going to get into that in a minute so what happens is this is your this is your what I call your IPA window this is your wrl window and this is your outgo window so so most people poor people their cash comes in this is the this is what happens with poor people their cash comes their money comes into their house and it goes out the outgo window in the form of bills because poor people think the primary purpose of this is to pay

for this oops is to pay bills right so poor people they hyper obsess on bills and they hyper obsess on income so that they can pay those bills because if they don't pay those those bills they're going to get phone calls they don't want to receive like they're going to lose things that they desire to have and so like you may be able to relate to this maybe not but you're like okay do I pay my water bill this month or my electric bill this month and maybe none of you have ever been there but

I've been there that's that's where I used to live at the end of am I going to pay my water bill this month or my electric bill this month the street right and so okay are we going to pay the car insurance or are we going to pay our gas bill like am I say gas I'm talking about gas for the house right so it's like when you hyper focus on bills the focus on bills your focus on this is what makes you poor it's it's like thinking that this is the primary purpose of money

is what makes you poor right now middle class people middle class people what they do is they pay their bills on time time so they can maintain good credit so they use debt and wrl stands for wealth reducing liabilities so they take some of their money they pay their they borrow money and then they pay their debts and so their money comes in through their job and then it comes down through the debt window and then through the outgo window and then out in the form of bills again but they focus this is the primary

window focus of the middle class people right and what a lot of people do they say well if I could just make this window bigger if I could just get more income for the amount of time that I work if I get paid a higher dollar an hour so I was making $15 an hour so now if I can make $35 an hour my life is going to get better well it is going to get incrementally better but it's not going to get exponentially better right or if I can make $50 an hour or $75

an hour or $100 an hour and most people who are think making $25 an hour right now they think man if I could make $100 an hour I'd be in the cat bird seat for the rest of my life Catbird Seat Texas colloquialism very good good spot okay so so rich people understand that this is the this is this is the window that makes you wealthy incom producing assets you take some of your money you take some of your time and you put it in here this is where we put that and when we do

this when you take some of your money and some of your time and put it in here in the beginning it produces nothing this is why most people never do it because when you first start I it's it's like you can't really ever start making a lot of money until you learn how to stop working for money and that doesn't mean you stop working you quit your job because you sto working for money it means you work on things that don't pay you in the beginning because a part of wealth creation a big part of

wealth creation is delayed gratification you have to put off things you desire to do now and you have to sacrifice some of the things you want to do now on the altar of things you want to do in the future what most people do is they do the exact opposite they sacrifice the long term on the short of the AL on the altar of the short term when making your life better in any Arena you sacrifice the short term on the long altar of the long term it doesn't matter if you want to learn a

new skill it doesn't matter if you want to acquire wealth it doesn't matter if you want to develop a new physical like um uh experience of life like you want to have more energy and have more health and vitality in your body it doesn't matter it always resolves it always goes down to the same thing Val valuing the long term over the short term why because eternity is more real than time because spirituality is more real than physicality because that like that's what it's a picture of like this is bigger than just a conversation about

money this is a conversation about how life works and so so what happens when you take some of your money and some of your time you put in here in the beginning it does nothing then it produces a little bit of money and then it produces a little more and then it produces a little more and then produces a little more and this window as you begin to fill it up with assets or the assets become begin to be more productive and produce more wealth what happens is this window now starts putting some money back

into this window right and so now the the you have this you have this thing where it's the money's coming in but it's going it's coming back then eventually when you get to this point you get to the point where this window this income that you're making now go U the income producing asset window now pays for your bills so all of your bills imagine imagine if you had assets that could pay for all of your bills for instance I'm going to take this book I'm going to take this book right here this book right

here generates between $7,000 and $188,000 a month I wrote this book in 2006 right literally all of my personal bills could be paid for with this one asset I wrote the book one time I put this book boom in that window and every month month after month after month after month after month after month whether I go get it or not this is income that comes in from my income producing asset window every month from this book my other book boss moves I wrote that book in 20 2021 that book generates between 35 and $770,000

a month I'm not oh you're so rich and wonderful has nothing to do with it I have an asset income producing asset window that has assets in it that income can follow if you don't like if you're struggling financially right now it's because you have no assets and you are an asset like your your work and your time is your only asset and if that's what you if that's all you have for now that's fine but man if you know this now and you keep on living in 5 years from now that's still all you

have maybe that's a problem and So eventually this you put this window in your house gets so big you don't need this anymore eventually this window in your house gets so big not only does it pay for this not only does it put money over here but it also pays for your wealth reducing liabilities it changes the game forever like when I think about money this is how I think about it when I get a dollar I don't say oh what can I go buy like what can I go buy what bill can I pay

no the first thing I think when I get some money is okay what what can I what what can I use this to what what can I use this money for to acquire or en enance an asset that'll produce more money how can I turn this money into more money that's my first question some of you watching this video right now it's not your first question not your second question not your third question not your fourth question in fact it's not even a question on your question list and you wonder why you're struggling you're struggling

because all of the money that comes into you and your family you have to go out and get it that's why you're struggling if you think about it when God made man where did he put him do he put him in a factory no he didn't put him in a factory oh he put him in a bakery right because the economic pie right no he didn't put him in a baker where God put man when he made him in a garden isn't that fascinating because what you do is you plant the seed and the seed

becomes the asset the seed produces the fruit and the fruit is what you live off of of every tree of the garden thou mayest freely eat and see what's happening you haven't planted any seeds for assets and you wonder why like you're you're doing it God gave us Clues you're doing it in a different way than he set it up and you're wondering why it's not working it's not working because he didn't design it to work that way he designed it to work a different way and so what you got to do is you got

to work within the parameters of how God created the system is what I'm saying making sense I mean I know I'm getting a little animated right now but is is what I'm saying making sense this this when I got this it was a wrap when I understood this I was rich in my mind before I was rich in my pocketbook because I knew what I had needed to do now I was like I was done it wasn't it wasn't that I didn't didn't have a job it was I am I hyper I for the first

time in my life and it was it was April of 1999 for the first time in my life I hyperfocused on this window hyperfocus assets assets assets I need more assets got got to have more assets got to have more assets got to have more assets need some assets income can follow okay so now here's what most people think this is average Joe say why is he so sad because he's average I'm sorry couldn't resist I couldn't resist okay so this Average Joe an average Joe stays broke because he thinks that the primary purpose of

money like he thinks the way you get rich he thinks the way you get rich is cash accumulation and so because this is by the way this is what they taught us to do think about it when you first started learning about money what did they teach you to do with money come on talk to me somebody save it you save it so you save money and and and and by the way rich people know that saving money is not a good idea right you you don't saving money when you're saving money you're saving something

that's becoming worth less over time if if if nothing hits it but inflation is becoming worth less over time right so so you think of it as the okay what I got I want to have this big pool of money that I can go back and keep looking at and as long as it's getting bigger I'm getting richer well I mean that's okay but it's better if you're not doing that okay so but what if instead of you viewing um money as a pool to be viewed pool instead of envisioning wealth as a big pool

of money to be viewed what if you looked at it as a tool to be used so this is Cash accumulation right and that's what most people think is wealth but I submit to you I would rather I personally I would rather I'm sure y'all can guess what that is Lazy River you're funny Lazy River see there's one in every crowd and today Ry is both of them okay so this is this is cash flow cash flow is infinitely more important than cash accumulation I would rather have like massive cash flow and small cash accumulation

or none than massive cash flow massive cash accumulation no cash flow or small cash flow I would rather have massive cash flow now if I could this is this is such a cool concept it's a cool concept because when you think about bodies of water right or when I think about bodies of water I think about a couple of different types of bodies of water so we went to Israel a couple of times I think we went in 2008 no 2019 we get went again in 2020 right so one of the coolest things is when

you go when we went to Israel is like towards the end of our trip we went down to the Dead Sea and we stayed in we didn't stay in the David Hotel the first time we stayed in the David Hotel the I don't remember the hotel we stayed in but what's really cool is when you stay at the Dead Sea a lot of the hotels there they have water that they pipe in from the Dead Sea into their pool in their IND indoor pool and it's a flotation it's like a flotation a flotation tank right

so you can get in the swimming pool and it's not a swimming pool you can get in this floating pool and you float you just and when you get out you just feel so invigorated from all the minerals okay but nothing can live in the Dead Sea hm why is it's interesting so the Dead Sea in Israel is at the South the sea at the north is the Sea of what the Sea of Galilee and there's a river that connects them what's the river the Jordan River okay stuff lives in the Sea of Galilee we

know that because the apostles were fishing in the Sea of Galilee right stuff can live in the Jordan River but nothing can live in the Dead Sea isn't that fascinating or am I just easily fascinated okay probably a little bit of okay so why can't things live in the Dead Sea because the Dead Sea has inlets but no outlets and that's why it's the Dead Sea and I promise you if your money has inlets and no Outlets your money is going to turn into a dead sea of cash accumulation and I know a lot of

people I know a lot of people who have big cash accumulation small cash flow and they struggle financially why because all of their money is tied up in a retirement account or all their money's tied up for future use where they might or might not live long enough to use it so cash flow is more valuable than cash accumulation and if you can get cash flow and cash accumulation that's better but how if I can figure out if I can figure out how to have my cash keep flowing long after I'm gone like I'm G

eventually one of the things we all have in common is we're going to die either you're going to come to my funeral or I'm going to come to yours or you're going to find out about my funeral I'm going to find out about yours right that's how it works like you just live long enough everybody you know either you're going to their funeral or they're coming to yours right or but at least they're going to find out about okay well long after I'm gone my objective is to have cash perpetuation and my cash perpetuation is

going to be determined by what I do with the cash flow and the cash accumulation while I'm still here because without going into great detail because I don't have time definitely don't have time without going into great detail Legacy wealth is not an amount of money we going to create generational wealth generational wealth is not an amount of money there have been plenty of families who've accumulated a bunch of money and in less than two generations it was all wiped out like Millions tens of millions hundreds of millions of dollars just gone in two generations

why because generational wealth is not an amount generational wealth is a system of cash perpetuation where cash perpetuates and your cash flow perpetuates after you die and you can like all of us can set that up how well one by having assets that income can follow and the assets that income can follow while we're alive and asset that income can follow even after we're gone so I think about the fact that you know I've self-published these books when I'm gone my family still has access to these the funnel the books that cash flow keeps coming

in why because it wasn't determined by something that I do every day it's something that I but my cash flow from those assets is determined by something I did one day not by something I do every day right and I say one day I mean a group of days right I've did it I've done it one time but also we can use life insurance for cash perpetuation so I learned this concept from a guy named Garrett Gunderson grick Gunderson wrote a book called what would billionaires do he wrote a bunch of book Killing sacred cows

I don't know if any of you have ever read any of his books but and I I mean I didn't learn it from him because I I I learned about life insurance back in the 80s before probably before Garett Gunderson was born um but but this the concept that I'm talking about right now wealthy families that perpetuate wealth one of the things that they do is they use life insurance for wealth perpetuation for a couple of reasons one the death benefit of life insurance is not taxable right and so being like being insured making sure

you have life insurance on yourself and hear me now everyone in your family did I say that too fast making sure you but but but I thought life insurance was income replacement insurance that's one of the things it does but you have to you don't have to but if you're serious and not just curious about creating wealth one of the things that you would desire to do if you knew to desire to do it is to have life insurance on everybody in your family because you already know everybody in your family is going to die

that's not what we want to think about so we think if we don't buy any life insurance we don't think about it then maybe they won't die they're going to die anyway so think about it get life insurance on yourself get life insurance on your children get life insurance on your spouse and I mean significant life insurance it's worth it I I don't sell life insurance so no nobody can accuse me of trying to make a sale I don't sell life insurance but I bought tons why because my I want my wealth to perpetuate what

people don't realize is how someone in your immediate family dying affects you they don't realize it until it happens they don't realize how surreal it is how energy draining it is how distracting it is how confusing it is how surreal it is and they feel like well if somebody dies I'll just go back to work and yeah that's what what you think you'll do because you haven't experienced it yet you don't you don't you cannot conceive the level of distraction and the level of Anguish that comes with that and so having life insurance gives you

the ability to step back from a minute if you now maybe maybe going back to work is something that will be beneficial to you but depends on who you are maybe not but don't wouldn't you rather have the choice right and while your children don't provide income generally right they do provide a sense of significance and responsibility and purpose and if one of your children dies you're not profit like I don't want to profit off my family's death okay right I get that so but you don't want to necessarily have to go back to work

when the your family needs you to be there with them to support them because your family member died their family member died also and if you're the strong one they need you youall picking up what I'm putting down yes sir like there are guys that have like like if you're married if you're a married man and you have a wife and children and you don't have life insurance shame on you you don't have like I I I shouldn't say shame on you but like do something about it like if you don't have life insurance because

I don't want my wife to have all this money and then she goes married somebody [Music] my money okay right but you want her to have to go find somebody else because you didn't take care of her did I Come Out Swinging too hard right well my wife doesn't generate any money so I don't need life insurance on her right so you're going to leave your children at home and go back to work when their mom dies because you can't stay home with them and encourage them and strengthen them and and bless them with your

presence in the hardest time in their life because you didn't have enough foresight to have life insurance all I'm saying is let's let's let's let's stop pretending that we're not going to die and let's act like the clock is ticking and we're all expiring and if you will set up your life where you prioritize this as step one this is step one this is step two and this is step three then you can create generational wealth This Is wealth building 101 let me say this though and I'll talk more about this in another video how

much cash flow you create how much money you accumulate doesn't determine how wealthy you are like wealth is not money I I did a whole video on this already I forgot about that I did a whole video on this already called wealth is not money our money is not wealth money is not wealth what is wealth wealth is your ability whose ability everybody tap yourself on the CH say my ability wealth is your ability to create value for someone other than yourself that's wealth and when you can create value for someone other than yourself you're

wealthy and when you can't create value for someone other than yourself you're not wealthy so this is my wealth building 101 video hopefully it'll help you in some way shape or form to make a decision to increase your cash flow and your cash per and prepare your cash perpetuation So eventually when you accumulate a bunch of cash it's not flush down by the way let me say this when I talk about cash perpetuation it's not enough just to have life insurance and just to have assets you have to raise up children who you teach to

be financially illiterate who understand these principles so that when you die they don't decimate the wealth they perpetuate the wealth hope this video blesses you stay blessed by the best and we'll see you in the next video bye for now