How to Build Wealth - It's not complicated

[@rakshakannu5044]

This channel is gold for a 24 year old like me! Thanks and keep making these videos!

[@martinschulz9381]

You have to be cut out for sales, most people are not. Taking risks with investments, borrowing and so forth is fine when you're younger, but when you're older and retirement is around the corner it's reckless as you can very quickly lose everything you've worked for.

[@tech-search-zb3rr]

Finding valuable learning gems on KZbin is rare. Thank you for the effort!

[@Anonyme67]

Naaa it is not rare. It is all over youtube.

[@ansoniamartin3024]

I like his delivery though. Great stuff. And to the point

[@Anonyme67]

Preach! My income is my bank. Self made using my salary to buy rental cash (4 in class B+, A- neighborhoods did so in 4 years), family home will be paid off on September. Will investing in 2026. My rent money is going to paying off our new family home. But I hate debt.

[@burgitech8643]

In Germany if you have created debt from whatever, its your liability for the rest of your life. So if you are working and earn money, all of it will go to the creditors exect a small amount you'll be permitted to keep to feed yourself. A brother of my colleague is in this situation and he works as a teacher now after his failed business, but he would have the same income not working at all. In 20 years he'll be out of debt and as a teacher at least he'll have enough pension. So as a teacher he is earning ~4000€ but he is permitted to keep just ~1000€ for the next 20 years. So he would have been much better off if he had worked as a teacher in the first place and not started a business.

[@akhilsharma20]

So environment is not for business, no wonder America leads

[@user-nu8in3ey8c]

Agreed. Great video! Bankruptcies don't really hurt you like people think, I still prefer to avoid it if possible. I would suggest that a combination of home ownership (and the leverage) and buying mutual funds (index funds) are far better than starting a business. Statistics show that 90% or so of small businesses do not last 5 years. For the 10% that succeed about half of them make it big. Decide carefully if you want a 5% chance of making it big, while putting in tons of effort and money (90% failure rate) or if you would rather go the slow and steady approach with a higher chance of success.

[@thesponge836]

Health is wealth

[@guyfitter3006]

I really appreciate your simple, pragmatic, entertaining and valuable presentations. For all the hype on KZbin with get rich quick, I think you make great discussion points.

[@omsinghrotele8404]

Most people don't realise the effect constant compounding has on your wealth over long perios of time, they are scared of taking debt to invest but do also lack the foresight to invest regularly a share of their own income, it helps the economy and generates great wealth.

[@ithinkthereforeitalk935]

You remind me of Saul from 'Better call Saul'.

[@MrSethmo13]

Dave Ramsey, not Gordon Ramsay. Gordon Ramsay is a chef.

[@MrTresto]

It made me laugh when he said Gordon Ramsey

[@yuriy5376]

Was looking for this comment lol

[@imcrimson8618]

@@MrTrestofuck it gordon can catch a stray too😭

[@cpaul57]

Just earned a new subscriber

[@Dntdrnkdaklaid]

Like your content. You remind me of Saul Goodman sound like him too. Subscribed!

[@MarcMarcus]

Great video. Agreed! Thank you.

[@SocksKr]

Cool!

[@RichGilbert]

Thanks for watching and the comment!

[@richardbarry2140]

Most millionaires did not make their wealth from starting and running a business. By census and tax data, the largest occupations of millionaires are 1. engineers, 2. accountants, 3. teachers, and 4. lawyers. Engineers get their wealth from having high wages and stock (options) in growing companies they work for, along with a knowledge of math. Accountants can see the finances of many clients and know what behaviors succeed and which lead to failure and apply this knowledge to themselves. And they have knowledge of math. Teachers are the largest occupation in the US and are trained to nurture and work building up their students' knowledge in a methodological way which is the same way wealth is accumulated. And a large subset of teachers knows math. Attorneys have high incomes, work on projects to completion, deal with money (and math), and cozy up to the political system to extract perks and benefits from the government. None of these categories are company builders though some run their own LLCs and partnerships, mostly to protect their assets and to lower their taxes.

[@szymonbaranowski8184]

check how many best at math earn well and you will see not many...

[@user-nu8in3ey8c]

Research also shows that those that own their homes have a net worth that is around 40X higher than those that rent. Stocks (probably index funds), home ownership, sometimes real estate investment, all of which are consistently bought consistently through thick and thin. Interestingly enough the leverage from buying a home allows excess money to be invested into stocks which doubles up on net worth accumulation. Other loans and margin accounts offer worse terms than real estate debt.

[@DaveForArt]

Which percentage of engineers, accountants, and lawyers are self employed? Aka running a small business. Many of them.

[@user-nu8in3ey8c]

@@DaveForArt Most of them do not necessarily do better on their own than they would just having a job. Sadly most of my friends in skilled trades found out that working for themselves paid less than having overtime where they were already working, and when they realized they needed insurance and all of those other costs, they were making less. Everyone talks about starting your own business but unless you have an easy way to enter a non-saturated field with a very high barrier of entry, you have, statistically a 90% chance of failure in the first 5 years. 90% of all small startup businesses fail within 5 years. The statistics are against someone trying to start a business. What is your experience in starting a small business or family owned business? Have you any experience in this? I have, and I can tell you its tough, and most likely a mistake, unless you happen to have a lot of factors line up in your favor. From family farming operations, to animal breeding, to retail, to software development I have either partnered to start a business, or started one myself, and despite the best efforts, working harder than I ever would for any boss, and it just was not profitable.

[@Syxoh]

CPA here, I disagree with the explanation of accountants getting ahead financially due to knowledge of math. CPAs know the law and how to minimize taxes paid on all sources of income while maximizing deductions taken and credits claimed on the source of income. This knowledge goes hand in hand with what Rich is teaching. The most sophisticated math I do is division and multiplication which is taught in elementary school. Also LLCs and Partnerships are flow-through entities and do not protect assets that well at all. Most high wealth individuals shield their assets in trusts, corporations, gift tax exclusions, inheritance, etc. Rich literally gave the formula for wealth at 1:41. If your revenues (from even 1 source such as a job) are greater than your expenses you will build wealth. Just find ways to scale your revenue and minimize expenses and you will build wealth faster. I have seen people making $400k+ a year living pay check to pay check with no assets and worried about retirement due to lifestyle creep. I've also seen people making $40-50k a year with millions in assets generated with zero inheritance and solely from that $50k a year income. The only difference between those two scenarios is in one scenario a person prioritizes the apperance of wealth while sacrificing true wealth and the other prioritizes true wealth while sacrificing the apperance of wealth.

[@Thrive910]

I am about to jump into Real Estate Investing and I am terrified but time to take a risk.

[@cortashaelam320]

I don't need wealth. We're not going to be here forever.

[@robertdobie2544]

For me, money isn’t about material things, it’s about personal freedom, doing what I want when I want. And what if I’m cursed by living to the age of 100 … and living for decades in declining health and poverty? Some people say that money can’t buy happiness… that may or may not be true, but this I know: poverty sure can’t buy happiness.

[@cortashaelam320]

@@robertdobie2544 Just because you have money doesn't mean you can do whatever you want.

[@eltomek]

What motorbike do you ride?

[@RichGilbert]

A bunch. From Ducati to KTM, Honda, etc etc. it’s fun. 👍

[@jeffreybaker4399]

Common mistake amongst friends and associates. They make a good investment, it shoots up, they pull the money out and buy a new living room set. They then tell (brag about?) everyone how good they are at investing. But don't see that they pulled the money out! They don't have an investment any more, they have a living room set which starts to devalue the minute it leaves the showroom. Find something that works and, unless you have a "real" reason to pull it, leave it in investments. The tortoise and the hare is a meaningful fable for a reason. It won't make you Elon Musk, but there are a lot of millionaires who never had a high paying job and were never in on the ground floor of "the next big thing".

[@Bobber256]

Charming presenter.

[@RichGilbert]

[blush] ☺ Thanks for watching!

[@alancotterell9207]

People who are obsessed with money are just greedy idiots. - I think there might be something not quite right with the system. Many things seem to be based upon presumption and supposition. Because somebody teaches something, that does not mean they really know anything.

[@cesarborja1064]

Was listening (not watching) and had to do another take when I heard "Gordon Ramsay" 😂

[@mkvarg]

😂

[@martinnielsen9952]

The us debt-bubble!

[@fraz006]

Take extremely big amount of debts , the biggest you can. Buy assets and rename them your relatives'. When you passed away, banks can only take whatever you have left and cannot ask from your relatives 😂

[@akhilsharma20]

Exactly

[@indiandeveloper4624]

bad example: Gambling is not risk.

[@JeremyHelm]

5:03 5:08 the whole system is rigged! ;)

[@thomastom4232]

Yes, its rigged towards all of us

[@4bidden1]

For what? Too have more money? So u can buy for crap? Do more things with the same old body? To be happy for a day just to get normalized to it ? Then what lol

[@green3488]

Just buy the real bitcoin.

[@thomastom4232]

Luckily its not necessary to buy either or. Just define your portfolios btc quota and rebalance accordingly

[@green3488]

@@thomastom4232 Not yet 😉