How to Build Wealth - It's not complicated

Рет қаралды 6,759

Күн бұрын

How do people build wealth? Many of us don't have a good financial education, so it seems like a huge mystery. It's not complicated. It takes discipline and time.
This is not about getting rich quick - this is about building real wealth over your lifetime.
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Пікірлер: 48

@rakshakannu5044 Ай бұрын

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

@omsinghrotele8404 Ай бұрын

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.

@tech-search-zb3rr 2 ай бұрын

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

@Anonyme67 2 ай бұрын

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

@ansoniamartin3024 Ай бұрын

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

@richardbarry2140 2 ай бұрын

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 2 ай бұрын

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

@user-nu8in3ey8c Ай бұрын

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 Ай бұрын

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

@user-nu8in3ey8c Ай бұрын

@@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 Ай бұрын

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.

@Anonyme67 2 ай бұрын

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.

@user-nu8in3ey8c Ай бұрын

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.

@guyfitter3006 20 күн бұрын

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.

@ithinkthereforeitalk935 2 ай бұрын

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

@Thrive910 17 сағат бұрын

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

@Bobber256 Жыл бұрын

Charming presenter.

@RichGilbert Жыл бұрын

[blush] ☺ Thanks for watching!

@burgitech8643 5 күн бұрын

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.

@martinschulz9381 20 күн бұрын

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.

@MarcMarcus Ай бұрын

Great video. Agreed! Thank you.

@cortashaelam320 Ай бұрын

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

@cs5842 Ай бұрын

Just what you want to be.. you will be in the end.

@robertdobie2544 Ай бұрын

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 Ай бұрын

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

@cesarborja1064 Ай бұрын

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

@mkvarg Ай бұрын

😂

@SocksKr Жыл бұрын

Cool!

@RichGilbert Жыл бұрын

Thanks for watching and the comment!

@MrSethmo13 Ай бұрын

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

@martinnielsen9952 Ай бұрын

The us debt-bubble!

@eltomek Ай бұрын

What motorbike do you ride?

@RichGilbert Ай бұрын

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

@fraz006 Күн бұрын

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 😂

@4bidden1 2 күн бұрын

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